OJK to Issue 15 Regulations Pertaining to Good Corporate Governance

 
Marcell Sihombing, M-22
 
The Financial Services Authority (OJK)’s mission to improve knowledge and understanding regarding the importance of good corporate governance (GCG) has now been formalized in a set of GCG guidelines consisting of several regulations. These guidelines represent an effort to improve the operational and financial performance of issuer and public companies.
 
“Fifteen GCG implementing regulations are to be formulated by the OJK,” explained the OJK’s Chief Executive for Capital Market Supervision, Nurhaida, after officially opening a GCG training event at the OJK office on Monday.
 
Five out of the 15 planned regulations have already been issued and relate to general meetings of shareholders, provisions regarding corporate secretaries, and public-company websites. Mrs. Nurhaida explained that various problems were encountered during the formulation of the regulations, including supervision and regulation within the financial sector itself, which overlaps with the OJK’s mission to a large extent. The need for the OJK to conduct time-consuming discussions regarding these new policies has also been proving problematic, which is why some of the guidelines are being prioritized while others are still being deliberated and adjusted.
 
The OJK launched its Corporate Governance Roadmap (CG Roadmap) in February 2014, and this initiative consists of 33 items that need to be readied for the GCG program, along with another 15 items which are included in the GCG guidelines.
 
“The GCG guidelines can have a positive impact on GCG practitioners,” Mrs. Nurhaida asserted.
 
Levies and Benefits
Public companies currently make mandatory contributions to the OJK in the form of levies. However the OJK then channels these levies back to them in the form of training programs, which are also included on the CG Roadmap with the intention of improving knowledge and understanding regarding GCG.
 
“The training program channels levies paid by financial service providers back to them in the hope of adding additional value to the GCG shown by these providers,” stated Mrs. Nurhaida.
 
Aside from training, the OJK will also involve itself in the capacity building of public companies. Mrs. Nurhaida explained that issuers and public companies will both share the levies here, while the OJK will then offer assistance to these companies in the form of capacity-building initiatives.
 
“With regard to company management and the implementation of the new GCG guidelines, high standards will be paramount if a decent level of competiveness is to be achieved [in the future Asian Economic Community (AEC)],” explained Mrs. Nurhaida.
 
(hot/ja/sp)
 
Marcell Sihombing, M-22
 
The Financial Services Authority (OJK)’s mission to improve knowledge and understanding regarding the importance of good corporate governance (GCG) has now been formalized in a set of GCG guidelines consisting of several regulations. These guidelines represent an effort to improve the operational and financial performance of issuer and public companies.
 
“Fifteen GCG implementing regulations are to be formulated by the OJK,” explained the OJK’s Chief Executive for Capital Market Supervision, Nurhaida, after officially opening a GCG training event at the OJK office on Monday.
 
Five out of the 15 planned regulations have already been issued and relate to general meetings of shareholders, provisions regarding corporate secretaries, and public-company websites. Mrs. Nurhaida explained that various problems were encountered during the formulation of the regulations, including supervision and regulation within the financial sector itself, which overlaps with the OJK’s mission to a large extent. The need for the OJK to conduct time-consuming discussions regarding these new policies has also been proving problematic, which is why some of the guidelines are being prioritized while others are still being deliberated and adjusted.
 
The OJK launched its Corporate Governance Roadmap (CG Roadmap) in February 2014, and this initiative consists of 33 items that need to be readied for the GCG program, along with another 15 items which are included in the GCG guidelines.
 
“The GCG guidelines can have a positive impact on GCG practitioners,” Mrs. Nurhaida asserted.
 
Levies and Benefits
Public companies currently make mandatory contributions to the OJK in the form of levies. However the OJK then channels these levies back to them in the form of training programs, which are also included on the CG Roadmap with the intention of improving knowledge and understanding regarding GCG.
 
“The training program channels levies paid by financial service providers back to them in the hope of adding additional value to the GCG shown by these providers,” stated Mrs. Nurhaida.
 
Aside from training, the OJK will also involve itself in the capacity building of public companies. Mrs. Nurhaida explained that issuers and public companies will both share the levies here, while the OJK will then offer assistance to these companies in the form of capacity-building initiatives.
 
“With regard to company management and the implementation of the new GCG guidelines, high standards will be paramount if a decent level of competiveness is to be achieved [in the future Asian Economic Community (AEC)],” explained Mrs. Nurhaida.
 
(hot/ja/sp)
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