Good Corporate Governance

Corporate Governance Structure

Badak LNG management regulates the limitation of giving/receiving gifts & sponsorship as one of the gratification control program. The program is aimed to support Badak Clean program and uphold GCG principles and Code of Conduct implementation in the Company.

 

Gratification Control Program is maintained carefully, responsibly and to be obeyed by all Badak LNG Shareholders. The giving/receiving gifts & sponsorships are regulated as follow:

 

GIFT

Gift Category

What categorized as Gift is giving/receiving money, goods, banquet/entertainment. While sponsorship is in the form of funding, infrastructure, facility, accommodation, transportation and goods.

 

Gift Acceptance Limitations

Badak LNG employees and families are prohibited to request or receive gift to benefit themselves and their families from any parties in business relationship with Badak LNG. Nevertheless, to support the Company business in certain condition the gift may be accepted under limitations as regulated in Giving/Receiving Gift and Sponsorship.

 

Gift Acceptance Report
The gift recipients are required to complete and submit FORM I to the Senior Manager Department with a copy to the Ethics Committee. Within at least 14 days, the Ethics Committee will decide whether the gift will be given to the recipient or belong to Badak LNG or should be returned to the giver.

Gift Acceptacne Rejection
Badak LNG employees and their families should politely reject an offer/gifts that are not in accordance with the provisions by explaining this policy/rule. If the request contains an extortion and/or coercion, it must be immediately reported as well as submitting FORM III to Head Department and the Ethics Committee.

Gift Giving Limitation
All Badak LNG employees and their families are prohibited from giving gifts to any party who has a business relationship with Badak LNG. However, in certain circumstances gifts can be given to other parties out of the Company by meeting the requirements regulated in the Provisions of Giving/Receiving Gifts and Sponsorship.
 

Gift Reporting
Any gifts must be reported by completing FORM II and delivered to the relevant higher authority (Senior Manager Department) with a copy to the Ethics Committee.

 

Gifts Rejection
Badak LNG employees and their families should politely make a rejection when asked to offer a gift which is not in accordance with the provisions of providing gift by explaining the policy/rule. If the request consists an extortion and/or a coercion, it must be immediately reported by submitting FORM III to the Head Department and the Ethics Committee.

 

SPONSORHIP
Sponsorship Acceptance Limitations
Badak LNG employees and their families are prohibited from requesting, conducting or receiving funds/sponsorship from any party which has a business relationship with Badak LNG for both official and non-official activity. However, in certain circumstances sponsorship may be accepted from other parties as stipulatied in the provisions.

Sponsorship Limitation
Badak LNG employees and their families are prohibited from providing funds/sponsorship to any parties having a business relationship with Badak LNG wether for official or unofficial activities. However, in certain circumstances Sponsorship may be given to the other parties as stipulated in the provisions.
 

Questions regarding the legal basis/feasibility of a giving/receiving gifts and sponsorship could consult the Ethics Committee or related functions. If related with the legal aspects, it could be consulted with the the legal functions via:
 

Phone: +62548-55-1490
Fax. : +62548 - 55-2170
Letter to: Secretariat of the Ethics Committee on the Internal Audit Department
or email to komiteetik@badaklng.co.id.

 

Program Dissemination/GCG Awareness
Badak LNG sustainably carries out GCG Awareness program in the form of roadshows throughout the Departments/Work Units to strengthen the commitment of all Workers & Partners in implementing Good Corporate Governance.
 

In order to maintain GCG commitment, all employees every once a year are required to sign a Personal Commitment on Compliance with the Code of Conduct and Integrity Pact since the first day of work as Badak LNG employees.
Badak LNG also makes an advertisement in several local and national mass media as a support to gratification control program.

Gifts & Sponsorship Acceptance Report
During 2013, the Ethics Committee has received nine  reports from Badak LNG workers related with the Gift Acceptance. The follow-up measures have been conducted to all reports in accordance with the provisions of the President Director Decree and Chief Executive Officer of Badak LNG No. SK-100/BJ00/2013-077 on Provisions of Giving/Receiving Gifts and Sponsorship.
 

As of September 2014, the Ethics Committee have received nine reports of Gratifications from Badak LNG workers. Gratification report is an integral report conducted on a regular basis by the Ethics Committee to the Board of Directors in accordance with the provisions.

 

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