COORDINATING MINISTRY FOR ECONOMIC AFFAIRS

REPUBLIC OF INDONESIA

PRESS RELEASE
HM.4.6/67/SET.M.EKON.3/02/2023

The Government Emphasizes the Importance of Good Corporate Governance to Face Global Economic Challenges

Jakarta, February 22nd, 2023

Continuous strengthening of the economy is increasingly needed, not only to deal with the impact of the crisis caused by the Covid-19 pandemic but also to face various global challenges expected to last until next year. One of the ways is by improving the implementation of corporate/company governance.

The government needs to ensure that every corporation applies the principles of good governance, especially open corporations, and corporations that collect and manage public funds. This corporation will become a source of new economic growth and a mainstay to accelerate the national economic recovery.

In the context of implementing corporate governance in Indonesia, the role and function of the National Committee on Governance Policy (KNKG) are very important in encouraging the implementation of good corporate governance (GCG) as the main pillar in maintaining economic resilience amid global challenges and uncertainties.

"The Coordinating Ministry for Economic Affairs fully supports the important role and implementation of the KNKG's duties, including through the issuance of the Decree of the Coordinating Minister for Economic Affairs Number 44 of 2021, which renews the KNKG mandate as the committee responsible for developing the implementation of public and corporate sector governance in Indonesia," explained the Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso, who represented the Coordinating Minister for Economic Affairs Airlangga Hartarto, in a keynote speech at the Dissemination of General Guidelines for Indonesian Corporate Governance and the Implementation of the 2022 Annual Report Award, in Jakarta, Wednesday (22/02).

The government appreciates the various steps and breakthroughs that the KNKG has made, especially in compiling, perfecting, publishing, and socializing different General Guidelines for Governance, both in the public sector (PUG-SPI), the corporate sector (PUG-KI), the Cooperative sector (PUG -KOPIN), Indonesian Non-Profit Organizations (PUG-ONI), Indonesian Family Owned Businesses (PUG-BMKI) and various other guidebooks concerning good governance and business ethics. Today's event specifically discussed the Indonesian General Guidelines for Corporate Governance (PUG-KI), an update from the previous PUG-KI in 2019.

"Updating these guidelines is carried out to be in line with developments and practices of global standard corporate governance, especially for corporations that are registered on the capital market and manage public funds, to protect the interests and meet the expectations of all stakeholders. It is hoped that applying these guidelines will accelerate the development of Indonesia’s capital market and financial services sector," said Secretary Susiwijono.

The Annual Report Award (ARA) will also be held to encourage the implementation of information disclosure and GCG practices of publicly listed companies every year. The annual event, which has been suspended for the last few years due to the pandemic, will also be held again in 2023. In addition, various strengthening of assessment criteria in corporate governance has begun, where the new PUG-KI will be the starting point for improving the 2022 ARA assessment criteria.

"The government gives its greatest appreciation to all related parties for their support for holding the 2022 ARA. I also hope this event can make a valuable contribution to the progress of improving Indonesian corporate governance," concluded Secretary Susiwijono.

Also attending the occasion were the General Chair of the KNKG, Deputy Chairman of the KNKG, Deputy Commissioner for Capital Market Supervision 1 of the Financial Services Authority, Secretary of the KNKG, Director of Compliance, Corporate Secretary & Legal CIMB Niaga Bank, Coordinator for Organizing ARA 2022, and Deputy Chairman of the Indonesian Issuer Association (AEI). (rep/iqb/dlt/map/fsr)

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Head of Communications, Information Services, and Meetings Bureau
Coordinating Ministry for Economic Affairs of the Republic of Indonesia
Haryo Limanseto

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