In its operations, the Company upholds the principle of prudence by aligning its management strategy with business risks, as recommended by the risk management framework the Committee of Sponsoring Organizations of the Treadway Commission (COSO). As part of its efforts to achieve strategic objectives and create value for the Company, an effective internal control system is a critical element that must be implemented well.
In Indonesia, internal control is regulated by OJK Circular Letter No. 30/SEOJK.04/2016, which governs the implementation of internal control systems. This regulation covers operational and financial controls, as well as compliance with other applicable laws and regulations, including the review of the effectiveness of internal control systems.
Policy and Compliance
The Company is committed to implementing policies and procedures that ensure transparent and accountable management, as well as compliance with all applicable laws and regulations. The control system applied aims to align the Company’s operations with strategic objectives and to ensure compliance with relevant regulations in every operational aspect.
Financial and Operational Control Policies and Compliance with Other Laws and Regulations
The Company implements financial control policies to ensure accurate, transparent, and reliable financial reporting. Additionally, operational control policies are applied to ensure that every operational activity complies with the established policies and procedures. These policies encompass the management of human resources, marketing, information technology, and other operational aspects. Compliance with regulations includes, but is not limited to, regulations set by OJK, tax regulations, and other relevant laws and regulations.
Internal Control and Compliance with the COSO Framework
As part of good risk management and ensuring compliance with applicable regulations, the Company has adopted the Internal Control – Integrated Framework developed by COSO. The COSO framework, which includes five main components, namely: control environment, risk assessment, control activities, information and communication, and monitoring, is implemented to ensure that internal control in the Company runs effectively and efficiently.
The application of the COSO framework aims to achieve three main objectives:
- Operational Objectives: related to the effectiveness and efficiency of the Company’s operations.
- Reporting Objectives: ensuring that the financial reports provided are reliable and meet the criteria set by regulators.
- Compliance Objectives: ensuring that the Company complies with the applicable laws and regulations.
Management Statement
An effective internal control system is a critical element in operating a company with the principles of good governance, efficiency, and transparency. Therefore, the Board of Commissioners and Directors of the Company have monitored and evaluated the implementation of the internal control system that has been applied, in accordance with applicable regulations and relevant international standards. Furthermore, we have ensured that the procedures and policies in place provide reasonable assurance that all company activities are carried out effectively and efficiently, in line with the principles of good corporate governance.
The Board of Commissioners and Directors of the Company hereby state that the internal control system has been sufficiently adequate to ensure the achievement of operational objectives, reliable reporting, and compliance with applicable laws and regulations.