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View all search resultsIFC, FBN to improve corporate governance
The International Finance Corporation (IFC), a member of the World Bank Group, signed a memorandum of understanding with Family Business Nusantara (FBN) Foundation on Wednesday to improve the corporate governance of family owned businesses
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T
he International Finance Corporation (IFC), a member of the World Bank Group, signed a memorandum of understanding with Family Business Nusantara (FBN) Foundation on Wednesday to improve the corporate governance of family owned businesses.
FBN founder Shanti Poesposoetjipto said it was important to improve the corporate governance of family owned businesses because they made up around 60 percent of listed companies in Indonesia.
FBN is a non-profit organization established on Jan. 9 this year. It currently has only five members, including PT Kalbe Farma Tbk, a pharmaceutical company, and PT Samudera Indonesia Tbk, a shipping and logistics company.
Several roadblocks to good corporate governance exist in family owned businesses, Shanti said, since it may be hard to treat family members according to business standards.
'Many family owned businesses struggle with this issue, because family members often demand equality even in terms of salary although their positions in the firm are different. This has to be fixed [to improve a company's efficiency],' she said.
IFC Indonesia country manager Sarvesh Suri added that as IFC aimed to improve Indonesian economic growth, it was important for IFC to approach family owned businesses through FBN because they played such a prominent role in the economy.
