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
While we are still finalizing the draft of an official code of conduct and a formal whistleblower mechanism for the reporting of misconduct, employees are proactively urged to report any case of fraud or breach of our business ethics, company rules or regulations, Articles of Association, laws or confidential information, to their direct supervisor. We expect to issue the official company code of conduct and the official mechanism for a whistleblower during 2017.
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.
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
The company is in the process of issuing a Procurement Policy that manages the criteria and requirements for suppliers or vendors involved in the procurement of goods and services required by the Company. These policies will serve to ensure the availability of good service with proper quality, time, price, source and place, to support continuity and sustainability of operational activities. Documentation of this policy is being finalized, and while doing so, has been applied.
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.
Out of RISA’s total area, the first stage of 44 ha had been completed by June 2014, and up to the end of 2016, a total of six companies had occupied an area of 33 ha (75%).
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.
As authorized by shareholders at the AGMS, the BoC appointed a public accounting firm, Tanudiredja, Wibisana, Rintis & Rekan, a member firm of the PricewaterhouseCoopers global network, to audit AE’s full-year financial statements for the year ended December 31, 2016, and determined the compensation for the firm.
Tanudiredja, Wibisana, Rintis & Rekan has been auditing AE’s financial statements since 2015 and providing tax consultation and advisory services to the company.
Administrative sanctions and suspension
No suspensions or administrative sanctions were imposed on any of our BoC or BoD members by regulators in 2016.