Jan

10

Building Trust in Indonesia Through Governance: Insights into the ASEAN Scorecard

In this era of digital globalization, companies are required to carry out their business activities in accordance with applicable regulations and policies and also disclose them to shareholders and related stakeholders. In the context of this disclosure, the parameters that are considered to be quite representative of the general practice of Corporate Governance on an international scope are the ASEAN Corporate Governance Scorecard (ACGS) Parameters.

The G20/OECD Principles of Corporate Governance, which are the main sources of the ASEAN Corporate Governance Scorecard Parameters, in addition to the source from the Indonesian Corporate Governance Network (ICGN), include:

I. Ensuring the Basis for an Effective Corporate Governance Framework
II. Equal Rights and Treatment of Shareholders and Key Ownership Functions
III. Institutional Investors, Stock Markets, and other intermediaries
IV. Disclosure and Transparency
V. The Responsibilities of the Board
VI. Sustainability and Resilience
In the context of explaining the six principles above in the working paper, they can be illustrated as follows:

The ACGS parameters above are divided into two levels, level 1 consist of 149 subparameters consisting of Shareholder Rights and Equal Treatment of Shareholders (30 subparameters), Sustainability and Resilience (22 Subparameters), Disclosure and Transparency (34 Subparameters), Responsibility of the Board of Directors and Board of Commissioners (63 Subparameters) and for level 2 consists of 44 subparameters consisting of Bonus (18 subparameters) and Penalty (44 subparameters).

Conclusion
Corporate Governance in the context of measuring the practice of information disclosure (Disclosure) by a business entity, has become a necessity and an obligation in order to show a form of accountability, responsibility, trustworthiness, and fair management. The measurement using the ASEAN Corporate Governance Scorecard Parameters is bast practices of Corporate Governance derived from the OECD Principles, as applied by 33 Developed Countries and 5 Developing Countries that are members. PT Nusantara Bisnis Konsultan Indonesia (NBK) is here to assist and serve as a key partner in helping your company in build a reputation for Good Corporate Governance. For more information or to get started, contact us at +62812-1010-8466.

Author:
Yudho Prabowo

Schinder Consultant London Ltd.

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