The Company’s continue to conduct business in line with Good Corporate Governance (GCG) principles on a day-to-day basis to build a trustworthy, transparent, and sustainable Company for its stakeholders.
Values are built by the company together with its stakeholders based on its corporate values of Integrity, Meritocracy, Openness, Respect and Excellence.
The company believes that consistent adherence to GCG can improve business growth and create a favorable environment for investment.
Code of conduct and whistleblower mechanism
The company have issued an official code of conduct for the Board of Directors, Board of Commissioners, and all employees.
From time to time, the management and the Internal Audit Function received whistle blowing information about suspected ethics violations or fraud. This information has been followed up with investigations and sanctions imposed if proven.
The Company's official code of conduct can be found here.
Insider trading, anti corruption and anti fraud
Currently the company has not issued formal policies related to insider trading, anti corruption and anti fraud. However, as stated in the Charter, the BoC and BoD are obliged to prevent the occurrence of such matters.
Compliance on creditor’s rights
On July 2016, AE issued a Financial Management Policy which, among other aspects, regulates the external financing transactions that apply to every subsidiary within the group. The policy stipulated that every entity is obliged to coordinate with the Group Corporate Finance and prepare appropriate rationale including cost-benefit analysis, prior entering into external financing transactions.
Selection and capability enhancement of suppliers or vendors
In 2017, AE issued a Procurement Policy, which consists of the guidelines for the procurement of goods and/or services in such a way that fulfills the requirements of AE and its subsidiaries for ensuring smooth operational activities.
This policy requires AE to determine Key Performance Indicators for measuring procurement progress, identifying risks, and developing the standard operating procedures for risk mitigation. Every procurement process in AE must adhere to the confidentiality principles and every party involved in the process shall sign a conflict of interest statement to ensure a fair and ethical treatment for all parties.
Regional Integrated Support Area
Regional Integrated Support Area (RISA), built by our subsidiary PT Adaro Persada Mandiri, is an integrated area located at Kilometer 69, Jl. Tambang Paringin, Paringin District, Balangan Regency. This complex will occupy a total area of 150 hectares and consist of offices, workshops and warehouses, mainly for supporting AI’s operational activities. RISA offers several benefits, including a security system integrated with AI’s system, and a clean water supply from its water treatment plant.
With its location being outside AI’s concession area but still has access to AI’s activities, RISA can provide support to AI’s operational activities in the long run. In addition, RISA also has access to the provincial public roads and to the port / Kelanis Dedicated Coal Terminal, making it a strategic complex of choice to support large-scaled industry significant to the regional economic activities in Balangan regency and the surrounding areas.
As of the end of 2017, a total of 44.7 ha of RISA had been constructed, and seven companies had occupied a total area of 33.7 ha.
Complaint handling mechanism
We strive to maintain and enhance our reputation of providing customers with high-quality products and services. We are committed to being responsive to the needs and concerns of our customers and to resolving any complaints as quickly as possible.
In AI, we have developed a complaint handling mechanism where customers may report any dissatisfaction of product quality to our marketing team. These complaints will be investigated by our Operation Support team, which will coordinate with the marketing team to formulate corrective actions to handle the complaints as well as to prevent the same problems from reocurring. Our marketing team will communicate the results of the investigation to the customers and find the best solutions.
Long-term incentives for BoD and employees
AE is still conducting analyses to determine the form of the most appropriate long-term incentives for the BoD and employees.
At AGMS 2017, Daniel Kohar from Public Accounting Firm Tanudiredja, Wibisana, Rintis & Rekan, a member firm of the PricewaterhouseCoopers global network, was appointed by the shareholders to audit AE’s financial statements for the fiscal year ended on December 31, 2017, or his replacement to be appointed and/or approved by AE’s Board of Commissioners.
Tanudiredja, Wibisana, Rintis & Rekan has been auditing AE’s financial statements since 2015 and providing tax consultation and advisory services to the Company. However, FY2017 was the first year for Daniel Kohar to audit the Company’s financial statements.
Administrative sanctions and suspension
No suspensions or administrative sanctions were imposed on any of our BoC or BoD members by regulators in 2017.