Financial Services Authority, February 4th, 2014: The Financial Services Authority (OJK) launched Indonesian Good Corporate Governance (GCG) Roadmap for issuers and publicly listed companies on Tuesday (4/2). The corporate governance roadmap is formulated by all stakeholders of corporate governance in Indonesia and supported by International Financial Corporation (IFC), a World Bank subsidiary.

It is expected that this GCG roadmap can be used as the main reference for comprehensively improving practices and regulations related to good corporate governance in Indonesia, particularly for issuers and publicly listed companies, said Chairman of OJK Board of Commissioners Muliaman D. Hadad. Considering Indonesias role in Association of South East Asian Nations (ASEAN) region, this roadmap will give a positive contribution for improving good corporate governance. The aim is so that the GCG roadmap can stand equally to the roadmap in ASEAN region, in the framework of welcoming ASEAN Economic Community in 2015.

The roadmap is created to provide overall description about various aspects of corporate governance that must be improved, namely: corporate governance framework, shareholders protection, stakeholders roles, transparency of information, as well as roles and responsibilities of the board of commissioners (BoC) and board of directors (BoD). The roadmap is arranged using main references and refers to international standards related to good corporate governance.

Indonesia has learnt from experiencing the global financial crisis in 1998 and 2008 that corporate governance is highly crucial. Poor implementation of corporate governance has been identified as one of the reasons that caused global financial crisis. In relation to this, improvement of corporate governance implementation in issuers and publicly listed firms in Indonesia becomes first priority now. This roadmap exists to facilitate the priority realization.

OJK and IFC have been committed to leverage the quality of GCG implementation in companies in Indonesia, particularly those in financial services sector, based on corporation agreement signed on June 17th, 2013. IFC is a subsidiary of the World Bank, which has been contributing to the development of 48 corporate governance codes in 32 countries.

OJK realizes that contributions from all stakeholders of corporate governance in Indonesia are very significant in achieving the objectives of the roadmap. Considering the matter, OJK has formed corporate governance task force (CGTF), which has a special task to develop corporate governance roadmap together with IFC. This task force encompasses representatives from regulatory institutions (Bank Indonesia, State-Owned Enterprises Ministry, Taxation Directorate General, State Development and Finance Comptroller, Indonesian Accounting Association, and Indonesia Stock Exchange) and governance institutions (National Committee on Governance Policy, Indonesian Institute for Corporate Directorship, Indonesian Institute for Corporate Governance, and Indonesian Institute of Commissioners and Directors).