Pt. Bank Rakyat Indonesia (bri)
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GOOD CORPORATE GOVERNANCE IMPLEMENTATION:PT. BANK RAKYAT INDONESIA (BRI)[pic 1]Amira Putri Anwari15311489COMPANY PROFILE[pic 2]Vision:“Commercial Bank that always prioritize Customer Satisfaction”Mission:“To conduct the best banking practices with a priority to serve micro, small, and medium enterprises (MSMEs) in order to support the economy of the people”“To provide customers with excellent services, delivered through a vast network and supported by professional human resources and a reliable information technology system, while adhering to effective risk management and sound practices of Good Corporate Governance”“To create optimal values and benefits for stakeholders”PT. Bank Rakyat Indonesia (BRI) is a banking company that segmented in micro banking, retail banking, and middle and corporate banking. PT. BRI is stablished in Purwokerto, 18 December 1895. The name of “Bank Rakyat Indonesia” itself officially established on 18 December 1968 by virtue Law No. 21 Year 1968. PT BRI listed their stock on Jakarta Stock Exchange (Indonesia Stock Exchange) in 10 November 2003, with code BBRI. In 2015, BRI opened an overseas branch office in Singapore, following the existing overseas unit, such as BRI New York Agency, BRI Cayman Island Branch, Hong Kong Representative Office, and BRI Remittance Hong Kong.GOOD CORPORATE GOVERNANCE EXECUTION AND IMPLEMENTATIONBank Rakyat Indonesia implements Good Corporate Governance (GCG) and Prudential Banking principles on risk management practices. The commitment of the company to exercise Good Corporate Governance in accordance with the provisions and best practices applied in the industry aims to make the company to become more sustainable. Thus, it will create more value for the stakeholders of the company. The assessment of implementation of GCG in BRI done continuously both through independent parties and self-assessment. Foundation of Good Corporate Governance ExecutionThe implementation of GCG in BRI is refers to the regulation and provision of Financial Services Authority (OJK), Bank of Indonesia, and other prevailing laws and regulations for banking industry. The principles for BRI’s references are: principles of Corporate Governance by Organization for Economic Cooperation and Development (OECD), ASEAN Corporate Governance Scorecard, CGC Indonesia Guidelines by National Governance Policy Committee (KNKG). Moreover, BRI implement the following basic principles of GCG in order to create company sustainability:
TransparencyPromoting openness in decision making process and in the relevant information regarding the company.AccountabilityPromoting clarity and accountability to ensure the company’s effective management.ResponsibilityComply with the applicable law and regulations and prudent banking principles.IndependencyThe company shall be manages in a professional manner without any pressure or influence from any parties.FairnessFulfilling the interest and rights of stakeholders fairly and equally.Objective of Good Corporate Governance ImplementationAchieve company’s vision and missionImprove performance in order to achieve company’s goalsMaximize company valueImprove trust from shareholders and stakeholdersGuarantee the sustainability of the bank’s health and progressSupport efficient and effective management of company resourcesOptimize consistent risk-return relationship with business strategyAchieve good corporate citizenshipGood Corporate Governance ImplementationImplementation in 2016General Meeting of Shareholders (GMS)The general meeting of shareholders was conducted under the guidelines and procedures based on the Article of Association. Reporting LHKPNAs a state-owned company, BRI complies with State Officials Asset Declaration (LHKPN) in accordance to the provisions of Commission of Corruption Eradication. Also, the members of Board of Directors and Board of Commissioners, Senior Executive Vice President (SEVP), and echelon 2 officials are required to report their assets prior and after serving a position. This aims to improve transparency, corruption prevention and support operations clear from a corruption, collusion and nepotism culture. The appointed coordinator for reporting LHKPN is the Head of Secretariat and Protocol and the Head of Policy and Human Resources Development Division.The Implementation of GCG Tools in Company Business and Operational ActivitiesIn implementing corporate governance, BRI utilizes the following tools and systems:Know Your EmployeeA program for monitoring internal human resources in order to prevent fraud.Know Your CustomerAn effort to identify, verify, and monitor customers’ profile in order to ensure each transaction is matched with customer’s profile.Anti-Money Laundering and Counter Terrorist FundingThis program is carried out across all the business unit in order to minimize risk and for the implementation of prudential principle.