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The underlying objective of BUMI’s GCG is to provide systems that help ensure the smooth running of the Company and its subsidiaries and help investors and other stakeholders gain confidence in management decisions.
Good Corporate Governance at BUMI
A listed company on the Indonesia Stock Exchange (IDX), PT Bumi Resources Tbk. (BUMI or the Company) is not only fully committed to adhering strictly to all requirements of the IDX, the Capital Monitoring Board (Bapepam) and other governmental regulatory bodies, but is also dedicated in upholding Good Corporate Governance (GCG) according to best global practices, should they differ from local standards.
While we follow the guidelines set down in the Indonesian Code of Good Corporate Governance (ICGCG) published by the National Committee on Governance in 2006, the underlying objective is to provide systems that help ensure the smooth running of the Company and its subsidiaries and help investors and other stakeholders gain confidence in management decisions through explicitly following the five principles of GCG: transparency, accountability, responsibility, independence, and fairness.
To this end, BUMI on an ongoing basis updates and enhances policies and procedures and in 2008 took concrete measures to increase the scope and implementation of GCG throughout the organization. In one major measure to further strengthen and accommodate coordination functions of health, safety, the environment and corporate social responsibilities within and between the Company and its subsidiaries, the Company issued a new organizational structure on 22 September 2008.
To help management monitor and assess appropriate employee behavior and to better implement the Code of Conduct updated as of June 2008, a Code of Conduct Committee was established on 15 July 2008. This Committee is invested with the authority, duties and responsibilities to ensure that all company and employee activities are in accordance with the Company’s core values of integrity, excellence, professionalism and safety and environmental protection as well as in full compliance with prevailing laws and regulations.
In addition to implementing enterprise risk management methods and a whistle-blower program (to be discussed further below), management established two committees in 2008 to address the developing global economic crisis. Both the Hedging Committee, for managing fuel and coal prices and currency fluctuations, and the Expansion Sub Committee, for ensuring that the plans and execution of expansion projects will be carried out properly will help maximize returns to the Company. All of these measures reflect the Company’s strategic direction to increase production in a controlled manner while following global best practices. Download Full Version of GCG Statement |
Investor Relations 