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Corporate governance in Indonesia below ASEAN par
Financial Services Authority (OJK) chairman Muliaman D
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Financial Services Authority (OJK) chairman Muliaman D. Hadad.(Antara/Yudhi Mahatma) (OJK) chairman Muliaman D. Hadad.(Antara/Yudhi Mahatma)
Financial Services Authority (OJK) chairman Muliaman D. Hadad.(Antara/Yudhi Mahatma)
The implementation of good corporate governance (GCG) in Indonesian corporations is still far behind other ASEAN countries.
Among 50 companies receiving ASEAN Corporate Governance Awards in Manila last weekend, only two companies were from Indonesia, namely PT Bank CIMB Niaga and PT Bank Danamon.
"We would encourage more companies, in all sectors, both private and state-owned, to aim to join those prominent ASEAN companies implementing GCG," said Financial Services Authority (OJK) head Muliaman in Jakarta on Tuesday.
The OJK would create a task force, Muliaman said, so that more and more companies from Indonesia could join the ASEAN corporate governance top 50.
The first step, he added, was to identify 20 to 25 companies already implementing good corporate governance. "We will prioritize public companies. We will help them to develop good governance and from that we expect more Indonesia companies to earn a good ASEAN corporate governance score card," he said.
Based on ASEAN corporate governance scores (ACGS), Thailand leads the way with 23 companies in the top 50, followed by the Philippines with 11 in the top 50, Singapore with eight and Malaysia with six.
The companies that make up the top 50 ACGS positions are from Indonesia, Singapore, Thailand, Malaysia, the Philippines and Vietnam.
This ACGS awards are an ASEAN Capital Market Forum (ACMF) initiative to assist the integration of capital markets among ASEAN countries. ACGS aims to improve the standards and practices of corporate governance of listed companies in ASEAN, and to act as a guide for investors deciding where to invest. (bbn)(+)
