As a state-controlled company, The Company must create a transparent, fair and responsible management to meet the principle of Good Corporate Governance (GCG). Not only as a commitment to comply with the regulation, the Company has internal awareness of implementing GCG as an effort to create a business environment that is healthy, responsible and adaptable to business dynamics.
The effectiveness and consistency of GCG implementation refers to the universal standard and applies to all managerial levels which we call as PNM Management System (SM PNM) stated in Director’s Decision Letter No. SK-007/PNM-DIR/III-04 dated March 1, 2004 on Declaration and Development of PNM Management System (SM PNM). SM PNM mainly gives priority to GCG practices, concept and implementation of Quality Management System ISO 9001:2008, perspective of Balanced Scorecard (BSC) and other management tools which are integrated and implemented with reference to corporate culture. Meanwhile, BSC focuses on four main aspects, i.e. finance, stakeholders, business process, and development or optimization of human resources.
Aside from internal environment, the commitment, one of which is through the implementation of Quality Management System and GCG principles, is applied to all subsidiaries and affiliated companies. The consistency has finally stimulated PNM’s subsidiaries to obtain the certificate of ISO 9001:2000.
The company believes that the implementation of GCG will contribute positively to the improvement of professionalism through better performance of each organizational elements and creation of added value for both shareholders and stakeholders. It is reflected in the result of the company’s health assessment, based on the Minister of Finance’s Decision Letter No. 286/KMK.013/1992 dated July 24, 1992, saying that PNM is “very healthy” with score 127.30 as per December 31, 2010.
Assessment over GCG Implementation in 2010 To get an objective assessment result over GCG implementation in the company through 2010, The Company has appointed MUC Consulting Group to conduct a comprehensive evaluation to all company lines.
The objective of the evaluation was:
- To test and assess the implementation of GCG in the Company through elaboration of GCG implementation condition and comparing it with the test indicators and parameters.
- Providing illustration of assessment results by giving score to corporate governance implementation accompanied with the recommendations for improvement.
- To monitor consistency of GCG implementation in PNM and collecting feedbacks for improvement and development of corporate governance in the environment of PNM.
Based on the evaluation results on five fundamental aspects using 50 testing indicators and 160 parameters, the implementation of GCG in the Company in 2010 reached the score [.] or was categorized as [.].
The main organs in the company are General Meeting of Shareholders, Board of Commissioners and Directors, which are aided by the supporting organs including Audit Committee, Committee of Credit Policy and Risk Control, Sharia Supervisory Board and Corporate Secretary.
