To enhance accountability in its business activities and create a conducive business climate, the Company established an efficient and effective supervisory system that involves all levels of the Company in its supervisory function. The Whistleblowing System was created to enable all individuals to report any situation related to alleged violation, fraud, improper transactions or abuse of authority in the Company. By involving all levels of the Company and the business partners as well, the Company believes that this system is able to improve the obedience and compliance of every individual with the existing regulations and stimulate the growth of high ethical culture in conducting activities related to internal and external parties.
Whistleblowing System Mechanism
The working unit in charge of carrying out the supervisory and inspection functions is a part of the Internal Audit Unit. The Company facilitates all mechanisms for reporting violations and breaches through the Internal Audit Unit. Reportable actions or forms of violations include fraud, corruption, theft/embezzlement, as well as violation/misuse of the Company’s policies, asset destruction, gratuities, conflicts of interest, fraudulence, bribery and other actions that adversely harm the Company.
Reporting of suspected violation can be submitted through email, hotline or letter addressing to the Ethics Committee/Internal Audit HO.
Each report will enter into the process of identification and collection of the report’s evidence. If the violation is proven to be true, the Company is entitled to take action to the reported party for punishment in accordance with the applicable laws and regulations.
The Whistleblower protection
The Company guarantees the protection of the whistleblower and his or her family from any threat and pressure. The confidentiality of the whistleblower’s identity is continuously protected to avoid such occurrence.
Every whistleblowing report filed to the Company will be followed up through investigation and collection of evidence to be submitted to the Board of Directors for recommendations on improvement and prevention in accordance with the applicable regulations of the Company.
Anti Fraud Management System Policy
The Anti Fraud Management System Policy was issued to accommodate every fraud that involves the employees, business partners (suppliers/vendors of goods and/or services), or other parties that have job relationship with the Company.
The objectives of the policy are as follows:
- Promote anti fraud culture to all employees.
- Enhance responsibilities and engagement of all stakeholders to be in compliance with the applicable procedures and stipulations.
- Clear responsibility and accountability in relations to the prevention, detection, respond and reporting of fraud in the Company.
- The Company does not tolerate every forms of frauds and is committeed to grow and maintain sound ethics culture.
The Company management regularly reminds to all employees who are aware of, or have reasonable suspicion of unethical conduct, both internal or external frauds, to report them to the Internal Audit Unit or through whistleblower system of the Company.
The Anti Fraud Strategy consist of 4 (four) pillars, as follows:
- Prevention – aimed to reduce fraud potentials through campaigns, trainings and socialization to all employees. The implementation of this strategy will be conducted by the Internal Audit Unit in coordination with the relevant management.
- Detection – has a function to identify, compile the information and find the fraud in the Company’s business activity. This facility consists of whistleblowing policy, surprise audit, surveillance system, investigation and reporting.
- Rewards and Penalty – imposing penalty for the fraudsters and giving rewards for employees that uphold ethics.
- Monitoring, follow up, and recovery – has a function to monitoring and evaluating the frauds as well as improvement follow up required to prevent the reoccurrence of fraud in the future.