Governance

GeneralSustainability

Good Corporate Governance

PEPC implements good corporate governance (GCG) in a disciplined manner and upholds the values of integrity in all of its business activities. At PEPC, the practice of implementing GCG is always adjusted to the latest developments while still supporting PEPC’s goals.

  • Manual Board
The Board Manual is a standard guideline for the Commissioners and Directors of PEPC in carrying out their duties and authorities in order to fulfill the interests of shareholders and other interested parties. The Board Manual can be read here.
  • Code of Conduct
The Code of Conduct is a reference for the behavior of PEPC personnel in carrying out their respective duties and responsibilities and interacting with fellow workers and company stakeholders. The Code of Conduct describes in detail the ethical guidelines for PEPC personnel. The Code of Conduct can be read here.
  • Gratuity Policy
In conducting business activities, PEPC has guidelines for handling the granting or request of gratification from one party to another. Based on this, it is a form of preventive and protective effort for all PEPC personnel. The guidelines:
  1. Guidelines regarding Gratification, Rejection, Acceptance, Giving Gifts/Souvenirs, and Entertainment (Entertainment) of PT Pertamina (Persero) ratified by PEPC. These guidelines can be read here.
  1. Guidelines on the Giving and Receiving of Souvenirs and Hospitality. These guidelines can be read here.
  • GCG Implementation Guidelines
This guideline is a Governance Manual prepared by PEPC. This guideline is a reference in the commitment to implement GCG practices by Shareholders, Board of Commissioners, Directors, Employees, as well as a guideline for stakeholdersin their relationship with the company. These guidelines have been ratified through the BOD & BOC PEPC Joint Agreement dated 24 July 2014.
  • Conflict of Interest Policy
To maintain an independent business relationship, PEPC has a policy that regulates matters related to conflicts of interest and its reporting mechanism, namely the Guidelines on Guidelines for Conflicts of Interest of PT Pertamina (Persero), which has been ratified by PT Pertamina EP Cepu. The guidelines can be read here.

GCG Rating

PEPC periodically audits the implementation of GCG, either by appointing an independent assessor or by self-assessment.
In 2014 – 2020 the value of PEPC’s GCG implementation shows the “Good” category.

Fiscal year Mechanism Assessment Aspect Score Quality
A (7,00)* B (9,00)* C (35,00)* D (35,00)* E (9,00)* F (5,00)*
2014 Assessment Independent 6,588 7,77 27,67 28,44 7,103 – 77,568 Good
2016 Assessment Independent 6,582 7,464 29,31 27,64 7,136 – 78,126 Good
2018 Assessment Independent 6,17 7,41 30,05 29,97 7,28 – 80,88 Good
2019 Self Assessment 6,29 7,54 29,87 30,05 7,18 – 80,93 Good

Information:
  1. Commitment to the implementation of Good Corporate Governance on an ongoing basis.
  2. Shareholders and GMS/capital owners.
  3. Board of Commissioners.
  4. Directors.
  5. Information Disclosure and Transparency.
  6. Another aspect.
For the first time in the 2019 Fiscal year, the GCG Assessment at PEPC used the Self-Assessment method and succeeded in obtaining a score of 80.92 out of a total weight of 100 with the “Good” predicate category, namely: the details of the scores are as follows:

Governance Aspect Weight Score Achievements (%) Explanation
Commitment to Sustainable Implementation of Good Corporate Governance 7,00 6,29 89,85 Very good
Shareholders and GMS 9,00 7,54 83,73 Good
Board of Commissioners 35,00 29,87 85,34 Very good
Directors 35,00 30,05 85,87 Very good
Information Disclosure and Transparency 9,00 7,18 79,73 Pretty Good
Other Aspects 5,00 – – –
Total 100 80,92

Whistle Blowing System

The Whistle Blowing System (WBS) is a system that provides a means for stakeholders to make complaints regarding alleged violations that occurred in the Company. The WBS used by PEPC is integrated into one with PT Pertamina (Persero) WBS which can be accessed via the following link — Whistleblowing Reporting System | Pertamina

The management of the WBS is carried out with the principle of confidentiality, anonymity and independence. Each incoming complaint is received by an independent consultant who will analyze and request more detailed information from the complainant to be submitted to Pertamina. Furthermore, Pertamina will follow up on the complaint, in accordance with the applicable provisions in the Company.

Anti-Bribery Commitment

PEPC is committed to a healthy business climate and upholds anti-corruption principles, by implementing the Anti-Bribery Management System (ISO 37001:2016 SMAP) and was certified on 23 December 2019 and the first surveillance audit on 27 October 2020.

To ensure its effectiveness, all PEPC personnel are given induction training related to GCG and anti-corruption. All PEPC personnel are also required to fulfill GCG Implementation Compliance KPIs, one of which is by carrying out GCG socialization, filling out monthly gratification reports, COI, COC and LHKPN.

Compliance Regulatory

All PEPC personnel have the obligation to report through the Compliance Online System. This is done to meet the GCG KPI Boundary which consists of:

  1. Filling of gratuities (performed every month).
  2. COC filling (done once a year).
  3. COI filling (done once a year).
  4. Filling out LHKPN (performed every 2 years or mutation).
  5. GCG socialization.

The above matters are regulated in the Guidelines for Submission of Reports on the Compliance Program through the Compliance Online System of PT Pertamina (Persero), which has also been ratified by PT Pertamina EP Cepu.

The guidelines can be read here.

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