PT Adaro Energy Tbk (AE)’s commitment to consistently implement the good corporate governance (GCG) principles of transparency, accountability, responsibility, independence, and fairness are reflected in all of its business process and activities, as well as in the decision-making process.
AE is controlled by Indonesian families who have built good reputation in Indonesian business world. While they collectively hold approximately 65% of AE’s shares, none of these families has outright control of the company. This creates a checks-and balances system that ensures decisions are made in the best interests of AE and its varied stakeholders.
The current GCG implementation at AE based on the GCG principles as stipulated in Indonesian Financial Services Authority (“OJK”) Circular Letter no. 32/SEOJK.04/2015 concerning the Code of Corporate Governance for Public Companies, the provisions of Law no. 40/2007 on Limited Liability Companies, Law no. 8/1995 on the Capital Market, Financial Services Authority (OJK) Regulation no. 21/POJK.04/2015 on the Implementation of Corporate Governance in Public Companies, and Indonesia Corporate Governance Roadmap issued by OJK in January 2014. In addition, AE’s GCG implementation is also based on the ASEAN CG Scorecard Parameters.
In order to ensure effective implementation of the GCG’s principles, AE periodically reviews and evaluates the implementation to investigate on the aspects that need to be improved. The consistent and continuous improvement of the GCG implementation is necessary to maintain the reputation as a trusted company.
The Implementation of the Adaro Values
The company continues to instill the Adaro Values of integrity, meritocracy, openness, respect and excellence among the employees, as the guiding principles for their behaviors at work and implementation of work activities. A set of compliance-based code of conduct that specifies and guides the implementation of the corporate values and principles as the standard of behavior has also been formulated and promulgated.
For more details, please visit Code of Conduct page in this website.
Adaro Zero Accident Mindset
AE launched the work safely mindset among all employees within the Adaro Group, named Adaro Zero Accident Mindset (a-ZAM). The five points of the mindset are:
- Understand your job well;
- Understand the dangers in your job;
- Understand how to control hazards;
- Ensure you do it consistently; and
- Ensure there are work equipment and infrastructure for safe and healthy work.
Adaro Indonesia, AE’s main subsidiary, escalated the cultivation of a-ZAM by strengthening safety culture. This program was initiated due to the dominance of human factor in causing occupational health.
The safety performance at AE is measured using two parameters: lost time injury frequency rate (LTIFR) – the number of accidents leading to the loss of work days out of one million man hours – and severity rate (SR) – the number of loss days out of one million man hours. AE recorded LTIFR of 0.06 in 2019, lower than 0.13 in 2018. AE’s SR also decreased significantly, from 108.36 in 2018 to 5.46 in 2019. This achievement was attributable to the implementation of a-ZAM, which has been more deeply embedded in all employees, and the stronger leadership to strengthen the employees’ discipline to always comply with the safety regulations imposed by both the company and the government.
For strengthening the implementation of a-ZAM and achieved the target of zero injury, the QHSE Steering Committee issued a circular letter to require all companies within the Adaro Group to set the target to “zero”, not only for fatal accidents, but also for first aid cases, medical treatment, occupational diseases, and environmental contamination.
For more details, please visit Corporate Governance page in this website.