IMPLEMENTATION OF INTEGRATED GOVERNANCE
In practice, the implementation of the principles of Integrated Governance in Financial Conglomerations is based on the regulations issued by Bank Indonesia and the Financial Services Authority, as follows:
- POJK No. 18/POJK.03/2014 dated November 18, 2014 concerning Implementation of Integrated Governance for Financial Conglomerations;
- SEOJK No. 15/SEOJK.03/2015 dated May 25, 2015 concerning Implementation of Integrated Governance for Financial Conglomerations;
- POJK No. 55/POJK.03/2016 dated December 7, 2016 concerning Implementation of Governance for Commercial Banks;
- POJK No. 45/POJK.03/2015 dated December 28, 2015 concerning Governance Implementation for the Provision of Remuneration for Commercial Banks;
- SEOJK No.40/SEOJK.03/2016 dated September 26, 2016 concerning Governance Implementation for the Provision of Remuneration for Commercial Banks.
- SEOJK No. 13/SEOJK.03/2017 dated 17 March 2017 concerning Implementation of Governance for Commercial Banks.
Moreover, the implementation of Integrated Governance of Group Financial Conglomerations is based on several principles, which are:
- Transparency, disclosure of material and relevant as well as transparent information in the decision-making process.
- Accountability, clarity of functions and execution, organ’s accountability in a Financial Conglomeration for the effective management of the company.
- Responsibility, the conformity between the management of the Main Entity and Financial Service Institution and the Constitution and the principles of sound governance.
- Independency, the professional management of Financial Conglomerations without any influence or pressure from any parties.
- Fairness, justice and equality in fulfilling the rights of the stakeholders arising from agreements and the law and regulations.
Integrated Governance is a priority for the Bank and PT RIF in ensuring its consistent implementation over time. As of 2016, the implementation of Integrated Governance at the Bank is focused on the realization of the following main objectives:
- Improving the performance of the Bank and PT RIF by enhancing the competency of the Human Resources that will ultimately result in the improvement of services to the relevant parties with an interest vested in the Bank, which is not only limited to the customer, but also the regulator: OJK/BI, Government, Employees and the Shareholders.
- Enhancing active supervision by the Board of Commissioners and the responsibilities of the Board of Directors in implementing banking prudence principles in carrying out the banking operations.
- Improving the role of all governance organs to protect the Bank and PT RIF from potential lawsuits, penalties and risk of reputation arising from the failure of the Bank and PT RIF to comply with the prevailing regulations.
The Bank and PT RIF understands that the trust of the investors, customers and the public depends on service, ethics as well as good, professional and proportional quality protected from the practice of business deviation. Therefore, as a synergistic Financial Conglomeration, the Bank and PT RIF continue to improve the consistency of the implementation of best practices as well as compliance with the constitution and ethical values that apply to the financial services industry. Through such efforts, the Bank hopes to become an entity that can be relied upon by companies in Japan and Indonesia.
To realize the implementation of a culture of compliance at all levels of the organization and business activities, Bank Resona Perdania established the Compliance Division as an independent unit that is not associated with other work units and functions to ensure the pursuit of the principles of compliance at all levels of the organization and to enforce the culture of compliance. The Compliance Division is directly responsible to the designated Director in charge for Compliance Function. The implementation of the compliance system is also monitored by the Board of Commissioners to evaluate its implementation and to provide advice and recommendations for the improvement of the compliance function implementation quality. The workflow of the compliance system at Bank Resona Perdania can be seen in the chart below: