The Basic Principles of Applying GCG

For Mitratel, Good Corporate Governance (GCG) is a process that regulates corporate management mechanisms in order to create sustainable economic value while still providing balanced protection for all stakeholders. The Company wants to ensure that our business growth remains within the corridors of ethics and behavior as a guide for Mitratel’s personnel in building a good corporation.

As part of the Telkom Group, our GCG concepts and foundation, of course, also refer to the principles held by our parent company, PT Telekomunikasi Indonesia (Persero) Tbk. We believe by implementing GCG in an orderly and consistent manner, we can become more professional at work so as to maximize the value of the Company in the form of improved performance and the image of the Company (corporate image).

GCG also ensures that we have delivered work efficiency obligations in a transparent and accountable manner. Therefore, the Company actively engages in various activities that have become an annual governance work agenda. From the initial stage, all of these activities, supported by a comprehensive and clear policy framework.

In implementing the GCG implementation, Mitratel always refers to Law No. 40 of 2007 concerning Limited Liability Companies, applicable regulations and provisions including Ministy of SOEs’ Regulation no: PER-01/MBU/2011 concerning
the Implementation of GCG in State-Owned Enterprises (SOEs) and “General Guidelines for Good Corporate Governance”.

The basic principles of GCG that apply and are applied by the Company include five aspects, namely: the principles of openness, accountability, responsibility, independence, and fairness. The application of the five principles will make a positive contribution in improving the Company’s GCG practices.