News
Tanggal : 2015-11-19

November 2015

FSA launched Corporate Governance Guideline for Public Company

Jakarta, November 17th, 2015, Financial Service Authority (OJK) launched Corporate Governance Guideline for  Public Company in Borobudur Hotel, Flores Room. In promoting good corporate governance, FSA initiated a "Comply and Explain" concept. Listed Companies have been recommended to follow the guideline to improve their corporate governance and simultaneously increase the Indonesia Listed Company Governance. If the public company fails to or cannot implement such recommendations, it shall give that explanation and the implementation alternatives (if any). In the following time, the company will be recommended to try to comply again.

Mrs. Nurhaida, FSA Commissioners Chief Executive, functioning as Capital Market Supervisor said that the purpose of the development of Corporate Governance Guideline of a public company was to encourage the adoption of corporate governance practices of a public company based on international best practices. 

Previously, in 2014 OJK has arranged Corporate Governance Roadmap for Issuers and Public Companies (Roadmap) to compile a governance improvement milestone of Issuers and Public Companies, to improve the regulation and governance practice of Issuers and Public Companies comprehensively and to increase the governance practice of Indonesian Issuers and Public Companies. Roadmap generated recommendations as improvement endeavors of governance practice implemented through three things, namely OJK rules, socialization and corporate governance guideline of Issuers or Public Companies. As one of the recommendations in the Roadmap, the development of Corporate Governance Guideline of a public company is expected to become one of the GCG frameworks in the capital market industry. The basic consideration of such Guideline development is that not all GCG aspects, especially those refer to best practices, can be fully set out in a form of regulation. The reason is that the effectiveness of GCG implementation by a public company also depends on the industry type, size, and complexity of the company itself.

This new guideline will strengthen the OJK regulation in the area of corporate governance.

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