The company realized that Good Corporate Governance is more than just an obligation but also as a need of the company. The company acknowledges that the success of Good Corporate Governance practices need to be supported by a strong and continuous commitment to be useful to the long term continuous business.
The company has a long term focus to fulfill the interest of all stakeholders by ensuring that all business activities, process and components of the company are based on and refer to the principles of Good Corporate Governance (GCG) that are transparency, accountability, responsibility, independence, and fairness.
The implementation of transparency in doing business activities will not only increasing the company’s credibility but also protecting the company’s asset form mismanagement, ensuring all the decision were made based on best option for continuous business without neglecting attention to the environment.
ACCOUNTABILTY
In order to support the accountability principles, the company has its own organization structure and exact functional responsibility in order to create an effective company’s management.
Board of Commissioner
The Board of Commissioner of the company are responsible to provide an supervision and advice to the Board of Directors and supervising their management to ensure that the agreed goals and business strategies are pursued, the Board of Commissioners consists of President Commissioner (Santoso Winata), Independent Commissioner (Richtter Pane)m and Commissioner (Oey Albert).
The independency is an important factor in the company’s organization. The independent commissioners therefore, may not have any affiliation with the controlling shareholders, the directors or other commissioners, and may not serve concurrently as directors of any other companies that are affiliated with the company.
Board of Directors
The board of directors are responsible for the operational management of the company, and executes this task independently and carefully. The board of directors comprises the President Directors (Widarto), Vice President Director (Sudarmo Tasmin), Director (Oey Alfred, Winoto Prajitno, Djunaidi Nur).
The Board of Directors regularly conducts a monthly meeting to discuss the progress of each business unit performance.
Audit Committee
The audit committee is responsible to examine the integrity of the financial reporting process and the internal control system, covering all aspects of compliance with financial, accounting, and legal standards. The audit committee also observes the independence and performance of the company’s external auditor and the internal audit department. The audit committee has the further responsibility to opening and expediting the cannels of communication between the external auditor and the company’s management, including the board of directors and the internal audit department.
Corporate Secretary
The corporate secretary act as the company information channel, who provide the material information of the company that the public should know and also giving input to the board of commissioner and board of director about all prevailing rules and regulations that should be complied. The corporate secretary is also needed to monitor the capital market progress, especially on the capital market regulation, provide information service to the public around the condition of the public listed company, giving the input to the director about public listed company based on regulation No.8 year 1995 on Capital Market and Implementation Rules, managing a special list of all board of commissioner and director (as on Bapepam’s Regulation No.IX.1.4) with all their relatives in order to detect any transaction (which may have conflict of interest), making stake holder list including the ownership of 5% or more, facilitating the implementation of Annual Stakeholder Meeting, conducting Public Expose and arranging Capital market press conference. At present the position of corporate secretary is fully hold by Hardy.
Internal Audit
The company ‘s apply an internal audit department to ensure the integrity of financial reporting, the effectiveness and efficiency of operations, and compliance with all prevailing rules and regulations. The internal audit’s results are reported to the management as an input to increase the effectiveness of internal control and to monitor the implementation of internal control. The directors could order an additional audit that are not specified in the annual audit plan, as long as they are urgent and significant matters. The function of the internal audit department is not only to conduct compliance audits of the implementation of the internal controls and the securing of the company’s assets, but also as a partner to management in improving the performance of the business units an contributing value added of the company.
The operational audit is ongoing to emphasized on economy, efficiency and effectiveness in utilizing resources in each activity or program that is being audited. The reports on the activities of the internal audit department are submitted to the president directors with copies to other board member and then communicated to the audited committee to ensure that they meet the audit standards and that audit findings and recommendation are followed up effectively.
FAIRNESS
To achieve the fairness aspect on information supply, the company give same treatment to the public, Capital Market Authority, Capital Market Community and also Shareholder. Relationship with our employee need to be maintained by avoiding discrimination practices, that respect employee’s human right, giving same opportunity with no different treatment on age, ethnic, nation, religion, and gender.
INDEPENDENCY
Independency inside the company is reflected by the existence of independent commissioner who’ responsible and charge to control every policy and action mage by the directors, instead of giving advice to the director when needed. The existence of independent commissioner inside the company also acts to balance the decision making process of the board of commissioner. The company’s audit committee act independently and professional to give advice to the board of commissioner. The audit committee report is used as the basis for the commissioner, including independence commissioner to review and identify matters that attach to the financial report with every existed risk consideration to measure the director’s performance through company progress in his capacity as an operational team
The appointment of independent commissioner was complied with the regulation of Jakarta Stock Exchange, which allowed no conflict of interest of the founder stock, the director or other commissioner, and not occupy another director position of other company which affiliated with the company in the same time.
RESPONSIBILITY
Company’s Policy to Recycle CPO Mill Waste
The company always realized how important to recycle every waste produced from the CPO mill processing in order to run a responsibility to the society and environment. Therefore, we use the shell (waste) from CPO process as boiler’s fuel. The company also implement all the liquid waste of the CPO mill to all its plantation. Besides that the company is currently developing the production of organic fertilizer by using the waste material of CPO : empty fruit bunches and liquid waste. To the society, this will ensure the proper environment for living which is free from mill waste pollution
In other hand for the government, we also meet the compliance of environment rules and regulation. And for the company this gives another benefit as the additional fertilizer used for company’s plantation. This is as a company social responsibility to the society and environment.
Policy as Consumer Goods Supplier of Cooking Oil to have “HALAL” Certificate
This is one of our responsibility to the society. Through this certification, consumer is confident that our cooking oil is secure and deserve to consumed that show to the government that we submissive to the prevail rules (Company Protection Rules). For us, this also provides opportunity of creating loyal consumers to support continuous business that will give maximum benefit to the stakeholder in the end.
Policy of Creating Working Field for the Nearby Neighborhood of Company’s Plantation and Mill Site
This becomes company policy to support the government by providing jobs for the society nearby, especially to the company operational unit’s neighborhood. For the company these become our responsibility to the society where our operational unit is strive to contribute the society welfare of the neighborhood.
TRANSPARENCY
Timeliness of The Submission of Periodically Reports
As a public listed company, the company always aware on the importance of information supply which are sufficient, clear, accurate, consistent and timely to the stakeholder. Due to that reason along 2006, the company consistently submitted the full set of financial report, accurate and timeliness to The Capital market and Financial Institution Supervisory Agency (Bapepam – LK) and Jakarta Stock Exchange (BEJ)
Dissemination of Company Information
To upload the principle of transparency, the company always try to supply the corporate information through a range of public media, especially on our official website www.tunasbarulampung.com. This website is managed by internal team which coordinates with all business units that connect on periodic information monitoring and updating.