TELKOM is subject to regulations administered and enforced by the Bapepam-LK and the SEC. We strive to comply with these. In addition, we implemented corporate governance policies and practices based on international market standards. TELKOM is aware of the importance of the implementation of Good Corporate Governance (“GCG”) as a vital instrument to boost the business performance and accountability to stakeholders and to better serve our customers.
TELKOM, has fulfilled its obligation to assess its ICFR in compliance with the Sarbanes Oxley Act (“SOA”) Section 404. This requirement applies to U.S. Companies as well as foreign private issuers registered under the Exchange Act. TELKOM’s commitment to SOA compliance and GCG are reflected in several policies and pronouncements. These include: establishing a definite unit that handles SOA business processes under the Directorate of Compliance & Risk Management setting the duties and responsibilities of each function related to planning, execution and corporate internal control management; determining the appropriate level of corporate internal control management and achievement targets; requiring high-level officers to evaluate, plan and implement internal controls and take responsibility for actions in their areas of responsibility; arranging disclosure control policies and procedures; and documenting, reporting and providing written evaluation results on ICFR effectiveness and self assessment results on a quarterly basis.
TELKOM operates corporate internal controls in three stages: entity level, transactional level, and information technology based internal control. Each of these are exemplified by corporate culture, policy making related to GCG, establishment of special units related to GCG, development of internal control systems, socialization to all lines of working units by senior leaders, control examination, audit implementation, evaluation of audit process and audit results as well as improvement stages.
Posted on May 29, 2009 Source: TELKOM 2008 Annual Report (filed to Bapepam-LK on May 11, 2009)
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