Perum Jamkrindo received an award as Runner-Up in the Non-Listed Financial SOE category at the Annual Report Award (ARA) 2016. The Acting President Director of Perum Jamkrindo, I. Rusdonobanu, received the prestigious award from Bank Indonesia Governor Agus Martowardojo in Jakarta on Tuesday evening (19/9/2017).
The Annual Report Award 2016 was organized by the Financial Services Authority (OJK) together with Bank Indonesia, the Indonesia Stock Exchange, the Directorate General of Taxes of the Ministry of Finance, the National Governance Policy Committee, and the Indonesian Institute of Accountants. This event is the 16th edition since it was first held in 2002.
The purpose of the ARA is to encourage the implementation of Good Corporate Governance (GCG) principles in Indonesian companies through information transparency and GCG practices, which is carried out through the assessment of companies’ annual reports and the provision of improvement recommendations for all ARA participants. The assessment is conducted based on public data to measure the transparency of the annual reports in accordance with the applicable provisions and guidelines and presented in a relevant and fair manner.
The total number of ARA 2016 participants is 314, consisting of 301 public companies and 13 pension funds. The total number of ARA 2016 participants increased by 3.63% compared to the implementation of the ARA 2015 event.
The ARA 2016 assessment categories are: BUMN Non-Financial Non-Listed
- BUMN Non-Financial Listed
- BUMN Financial Non-Listed
- BUMN Financial Listed
- Private Non-Financial Non-Listed
- Private Non-Financial Listed
- Private Financial Non-Listed
- Private Financial Listed
- BUMD Non-Listed
- BUMD Listed
- Pension Funds
The quantitative assessment of the ARA 2016 participants’ annual reports consists of 8 criteria with the following weights:
- General – weight 2%;
- Important Financial Data Overview – weight 5%;
- Report of the Board of Commissioners/ Supervisory Board and Directors/ Management/ Acting Management – weight 3%;
- Company Profile/ Pension Fund – weight 8%;
- Management Analysis and Discussion of Company/ Pension Fund Performance – weight 22%;
- Good Corporate/Pension Fund Governance – weight 35%;
- Financial Information – weight 20%; and
- Others – weight +/-5% namely:
- Good corporate governance practices – weight +5%; and
- Bad corporate governance practices – weight -5%.
The ARA criteria are arranged by taking into account the provisions/standards and best practices in the field of corporate governance and accounting, and are updated to align with the dynamic developments of standards and practices.
In ARA 2016, several changes were made to the ARA criteria in order to align the criteria with several OJK regulations regarding Annual Reports of Issuers and Public Companies, Websites, Corporate Secretaries, and the Implementation of Risk Management in Pension Funds.
In addition, the changes in the criteria also refer to the revision/new issuance of the Financial Accounting Standards Statement (PSAK), SK Sekmen BUMN No.16 of 2012 regarding the Indicators/Parameters for Assessment and Evaluation of the Implementation of Good Corporate Governance, the ASEAN Corporate Governance Scorecard Criteria, the results of the ARA 2015 Interviews, the results of the ARA 2015 Focus Group Discussion, as well as adjustments in order to promote good corporate governance for non-listed companies.
To maintain integrity and quality in the ARA 2016 assessment, the Jury consists of various institutions, as well as representatives from practitioners, economic/ capital market observers, and academics, who are independent of the organizing committee.
The ARA 2016 judging process consists of two stages, namely the quantitative assessment stage based on the criteria that have been established and published, and the interview stage that is conducted to obtain a high-level view from the company’s leadership regarding the GCG practices implemented by the company, as well as to confirm the quantitative assessment results of the annual report content.
Based on these two stages, the Jury determined the ARA 2016 winners for each category and the Overall Champion. After undergoing various assessment processes, the ARA 2016 Jury determined the first to third place winners for each category and the overall champion.