Good Corporate Governance
Global condition has been marked by the increasing of democratization and decentralization which focus to the importance of competition enhancement in many fields. The competition enhancement as a competitive leverage is believed as a success key in winning the competition in globalization era. The main factor of competitiveness determinant is an efficient service process with a precision quality and public policy in governance system in various sectors. Therefore, the Good Corporate Governance (GCG) principles implementation is going to be a strong foundation for Bio Farma in their endeavor to increase their competitiveness in various aspects in local, regional, national and global levels.
Board of Commisioners, Board of Commisioners Supporting Ogan, Board of Directors and allemployees are strongly committed to implement GCG. GCG has turned into basic philosophy embedded in Bio Farma employees’ attitude, manner, mindset and way of work. Through GCG, Bio Farma is capable to bulid their own image and reputation as an excellent and dignified Company with Company culture consisted of professional, intgirty, team workd and customer oriented.
The realization of GCG are enable Bio Farma to optimize Company value, to increase Company contribution in national economic and to increase condusive climate in Company environment. This can be seen in 2016 Bio Farma ExcellencePerformance Assessment Criteria (KPKU) of 510.25 or 9.26% or 43.25 point increase comparing to 2015 scor of 467. With such score improvement, Bio Farma category classification has been changed into Good Performance comparing to prior classification as Early Improvement. Such scor improvement conducted by Forum Ekselen BUMN (FEB) has been a evident that governance in Bio Farma has been improved and effective, therefore the Company performance has been improved as well.
THE IMPORTANCE OF GOOD CORPORATE GOVERNANCE FOR PT BIO FARMA (PERSERO)
- 1. To improve and maximize Company value to win the global competition.
- To avoid fraud, corruption, collusion and nepotism.
- To encourage the efficient, transparent and consistent market with the prevailing laws and regulations based on Good Corporated Governance principles: Transparency, Accountability, Responsibility, Independency and Fairness.
Prinsip Dasar GCG
The openness in disclosing materials and relevant information about the Company.
The explication of function, the execution and the organ responsibility so that management of the company is done effectively.
The conformance in the management of the company regarding the regulations and the principles of a healthy corporation.
A state in which the company is professionally managed without conflict of interest and intervention or pressure from any parties that is not in accordance with the laws and principles of a healthy corporate.
Namely justice and equality in fulfilling the rights of stakeholders arising based on agreement and regulations
THE OBJECTIVE OF GCG IMPLEMENTATION
- Optimizing the Company value in order to have strong competitive advantage both nationallynd internationally, to maintain the Company’s existence and sustainability to achieve Company’s intention and goa.
- Professionally, efficiently and effectively encouraging Company and empowering the function and improving the autonomy of Company’s organ.
- Encouraging the Company organ to make decision and to take action based on high moral standard and compliance to the laws and regulations and awareness of Company Social Responsibilities to Stakeholders or environmental sustainability around the Company.
- Improving the Company contribution in environmental around the Company and in nasional economic.
- Improving the condusive climate in environmental around the Company.
All management level of PT Bio Farma (Persero) believes that GCG implementation enables the Company to achieve its objective in business growth, profitability and long-term business sustainability. Therefore, the Company are able to provide the value added for shareholders, wealth for Company big family and optimum contribution for State.
The governance structure of Bio Farma is based on Law Number 40 of 2007 of Limited Liability Companies. Each company organ consists of three elements: shareholders via the General Meeting of Shareholders (GMS) as the highest decisionmaking forum for the company’s shareoholders, Board of Commissioners to supervise the Company’s operations, and Directors to manage day-to-day operations of the Company.The Board of Commissioners and Directors authorities and responsibilities are clearly outlined in the bylaws of the company and prevailing regulations.
Regarding to Company Organ, both Board of Commissioners and Board of Directors have their clear authorities and responsibilities which are aligned with their respective functions as mandated in Company Article of Association and prevailing rules and regulations. Both Board of Commissioners andBoard of Directores are responsible to maintain long tem sustainability of Bio Farma, Therefore, Board of Commissioners and Board of Directors are required to have same perceptions about Company philosophy, vision, mission and values .
- To encourage Company sustainability through management based on transpiration, accountability, responsibility, independence and fairness and equality.
- To encourage the empowering of function and independence of each of Company Organ consisted of Board of Commissioners, Board of Directors and General Shareholders Meeting.
- To encourage Shareholders, Members of Board of Commissioners and Board of Directors to make their decisions and to take actions based on high moral standard and compliance to rules and regulations.
- To encourage Company social awareness and social responsibility of society and environment sustainability around the Company.
- To optimize Company value for Shareholders by consistently noticing other stakeholders.
- To improve Company competitiveness both in national and international level to improve market confidence which can encourage investment inflows and continuity of nasional economic growth.
THE PURPOSE AND OBJECTIVE OF GCG
Bio Farma GCG Roadmap
In improve the quality of GCG implementation, the management has established the GCG Roadmap 2006-2018 consisting of four phases and in harmony with the five-year Long-term Company Plan (LTCP).The end result is becoming a global company whose strategies are based on Global CSR approaches aimed at Good Sustainability Citizenship.
The results of GCG Implementation Self Assessment
In 2018, PT Bio Farma (Persero) has assessed the implementation of Good Corporate Governance in the 2016 period by the BPKP Representative Office of West Java Province. The assessment results for the 2017 were :