Overview of GCG Implementation, Core Values, Committees, Supporting Documents, and Speak Up System

Governance

Overview

BUMI recognizes the importance of implementing Good Corporate Governance (GCG) within the Company to gain investor confidence to increase the long-term value of shareholders and other stakeholders. BUMI is required to implement GCG principles in its business activities that are transparency, accountability, responsibility, independence, and fairness. Therefore, BUMI's Board of Commissioners and Board of Directors have ensured the adequacy of GCG practice in the Company and all applicable laws and regulations regarding GCG have been met. BUMI adheres strictly to Indonesian regulation in the design and implementation of its governance processes while recognizing the importance of meeting international governance standards for the benefit of international investors and shareholders.
 
The following list comprises the main regulatory framework for governance followed by BUMI and its subsidiaries:

• POJK No. 21 / POJK.04 / 2015 dated 17 November 2015 regarding the Implementation of Corporate Governance Guidelines for Public Company.
• OJK’s Circular Letter no. 32 / SEOJK.04 / 2015 dated 16 November 2015 regarding Corporate Governance Guidelines for Public Company.
• Indonesian Best Practices – The Code for Good Corporate Governance composed by the National Committee for Corporate Governance.
• ASEAN Corporate Governance Scorecard.
• OECD (Organization for Economic Co-operation and Development) Principles of Corporate Governance

Governance

Objectives of GCG Implementation

Good Corporate Governance sets the relationship between shareholders, Board of Commissioners and Board of Directors, and all the stakeholders. The purposes of Good Corporate Governance for the Company are to:

• To maximize corporate and shareholder value by enhancing transparency, accountability, responsibility, independence, and fairness in order to strengthen BUMI’s competitive position both domestically and internationally and to create a sound environment to
  support investment.
• To encourage the management of BUMI to behave in a professional, transparent and efficient manner as well as optimizing the use of and enhancing the independence of the Board of Commissioners, the Board of Directors, and the general meeting of shareholders.
• To encourage shareholders, members of the Board of Commissioners and the Board of Directors to make decisions and to act with a strict sense of morality in compliance with their social responsibility towards the various stakeholders and the protection of the environment.

BUMI adhering to the four principles of Good Corporate Governance: Ethics, Responsibility, Accountability, Sustainability.

Governance

Stages of GCG Implementation in BUMI

Governance

BUMI Core Values

BUMI’s core values are:

• Integrity
• Excellence
• Professionalism
• Safety and environment

BUMI’s mission is to secure and operate sustainable energy and mining businesses and compete aggressively but fairly in response to global competition to increase return on investment to shareholders, improve the welfare of employees, enhance public prosperity in the surrounding areas of the operating sites and promote environmental sustainability at all surrounding areas of the operating sites. To accomplish our mission, our core values that are integrity, excellence, professionalism and safety, and environment are critical to the success of our business as described in the following chart.

Governance

BOC COMMITTEES

Governance

BOD COMMITTEES

Code of Conduct Committee
Code of Conduct Committee is formed to ensure that BUMI’s Code of Conduct is implemented adequately and the Speak Up System operates effectively.

In assisting its duties and responsibilities, all members of the Code of Conduct Committee are consist of Head of the Company’s Human Resources Human Resources & General Affairs Division as Chairman and Head of Bumi’s business unit as Member.

Currently, the following persons are serving on the committee:

Mr. Mahmud Samuri - Chairman
Mr. Hendro Yuliantoro - Member
Mr. Muhammad Iffan Fanani - Member
Mr. Gemilang Adi Perdana - Member

Human Capital Committee
The Human Capital Committee was established to enhance the effectiveness of the organization in terms of its human resources function. The committee is expected to proactively provide recommendations to the Board of Directors regarding human resources policies and its implementation progress.

In assisting its duties and responsibilities, all members of Human Capital Committee are consist of Head of the Company’s Human Capital & General Affairs Division as Chairman and Head of BUMI’s business unit as Member.

Currently, the following persons are serving on the committee:

Mr. Lufti Julian - Chairman
Mr. Hendro Yuliantoro - Member
Mr. Muhammad Iffan Fanani - Member
Mr. Gemilang Adi Perdana - Member

Environmental, Social, and Governance (ESG) Committee
ESG Committee was established to provide recommendations to the Board of Commissioners and Board of Directors in the areas of environment, social, and governance to ensure the existence and effectiveness of the ESG implementation system in the Company.

Currently, the following persons are serving on the committee:
Mr. Christopher K. Fong - Chairman
Mr. Andrew C. Beckham - Member
Mr. Eddy Sanusi - Member
Mr. Himawan Setiadi - Member
Mr. Muhammad Rudy - Member
Mr. Renova Viscky - Member