Corporate

Corporate Governance

With the increasingly complex business condition, the Company requires to continuously maintain the quality of Good Corporate Governance (GCG) implementation. Subsequent to its function as the forum that enable all bodies to perform within the Company’s set business direction, GCG implementation has created values and culture beneficial to the Companny as well as to all stakeholders

GCG Principle

GOOD CORPORATE GOVERNANCE PRINCIPLE
(GCG PRINCIPLE)

The increasingly complex business environment has demanded the Company to always keep up a strong implementation of Good Corporate Governance (GCG). Not only it allows the entire organs to perform in accordance with the Company’s business direction, GCG has also helped create a culture and values that not only proves to give benefit to the company, but also to all stakeholders. In an effort to align those interest with the Company’s objectives, the Company always adheres to the five principles Governance in its day-to-day business activities. The fives Principles are.

 

  1. Transparency

    As a publicly listed company, the Company must be managed according to the principles of transparency. At the Company, this principle is implemented through the availability of accurate and adequate information related to the Company activities and achievements both in financial and non- financial terms. Accurate information available to stakeholders allows them to make calculated decisions depending on their interests in the Company. Information is released periodically and in a timely manner. Media used include the Annual Report and Biyearly Financial Statements in published in mass media. In addition, any current information considered relevant and material enough on issues pertaining to the Company is disclosed through a variety of media such as quarterly reports, press releases, and uploaded in the Company’s website at http://www.lippo-cikarang.com

  2. Accountability

    Accountability is one of the main prerequisites in order for the Company to achieve success and sustainable performance. Therefore, the Company’s is managed on a corporate governance structure where each existing organ has clear roles and functions in order to synergize with one another.

  3. Responsibility

    Every company is responsible for all activities it carries out and must comply with all applicable laws and regulations including its own Articles of Association, Limited Liability Company Act, the Capital Market Authority and all regulations passed by the Indonesia Stock Exchange where the Company’s shares are listed and traded. As a good corporate citizen, the Company also observes its responsibility towards the society and the environment while providing benefits. The Company realizes that the surrounding communities also have a role in maintaining the Company’s business sustainability in the log run. This responsibility is embodied in Corporate Social Responsibility (CSR) programs through community development and environmental conservation activities.

  4. Independence

    GCG implementation will go well if a company is managed independently to ensure no particular organ dominates or intervenes other functions of the Company. Based on this principle, the Company should be managed independently by professionals. The Company has a Code of Ethics in place that is more specifically set up on the implementation of independence in order to prevent conflict of interest so that any business decision can be made objectively.

  5. Equality and Fairness

    Every company must also base its operations on the principle of Equality and Fairness. In this regard, the Company has made a broad access to information available to all stakeholders through various communication media. Internally, the Company provides equal opportunity for new employees and opens up career opportunities for each one of them regardless of race, culture, religion, gender, or physical condition.

Article Of Association

Rights of Shareholders

PT Lippo Cikarang Tbk

Hak Pemegang Saham dan Hak Karyawan

Hak Pemegang Saham

  1. Menerima dividen saham dengan syarat dan ketentuan sesuai dengan keputusan Rapat Umum Pemegang Saham (RUPS).
  2. Ikut berpartisipasi dalam mengambil keputusan di dalam RUPS berdasarkan dengan syarat dan ketentuan yang berlaku dan Tata Tertib RUPS.
  3. Menerima informasi mengenai Tata Tertib RUPS dan prosedur voting di dalam RUPS.
  4. Meminta secara tertulis kepada Perseroan agar diselenggarakan RUPS apabila memegang saham minimum 10% (sepuluh per seratus).
  5. Mengusulkan acara/agenda RUPS apabila memegang saham minimal 10% (sepuluh per seratus).

Hak Karyawan

Untuk menciptakan ketenangan serta kenyamanan dalam bekerja dan berusaha Perseroan telah menyusun Peraturan Perusahaan (“PP”). Hak, kewajiban, dan tanggung jawab Perusahaan dan Karyawan disusun dengan jelas di dalam PP dimana kedua pihak saling menghargai, saling menghormati, saling mempercayai, dan saling bekerja sama. PP juga memberi kebijakan mengenai kesehatan, keamanan, kesejahteraan Karyawan dan juga pelatihan dan pengembangan bagi Karyawan.

PP tersebut secara periodik ditelaah oleh Perusahaan.

Karyawan memiliki hak sebagai berikut:

  1. Mendapat upah/gaji sebagai imbalan atas melakukan pekerjaan.
  2. Mendapat upah/gaji lembur untuk kelebihan jam kerja yang telah ditentukan dalam PP.
  3. Mendapat dan melakukan cuti.
  4. Mendapatkan penggantian biaya kesehatan sesuai dengan PP.
  5. Menerima semua bentuk Tunjangan sesuai dengan PP.
  6. Mengemukakan pendapat, saran dan usul yang membangun perbaikan kinerja dan kemajuan Perseroan.
  7. Mendapat kesempatan berkarya sesuai dengan ketrampilan dan kompetensi di dalam Perseroan.
  8. Mengajukan pengunduran diri sesuai ketentuan yang berlaku dalam PP dan Peraturan Perundang-undangan yang berlaku.
  9. Mendapatkan Pensiun sesuai ketentuan yang berlaku.

Equitable Treatment of Shareholders

PT Lippo Cikarang Tbk

 

Blackout Period

Preventions from Trading Company Shares

For the Board of Directors, LPCK Top Executives, and Related Employees

 

“The Board of Directors, LPCK top executives, and related employees (including their spouses and minors) are prohibited from trading Company shares two weeks before the release of the Company’s quarterly and annual financial statements, and they are also prohibited to trade Company shares for 24 hours after the release of financial statements.

Moreover, for those Board of Directors, LPCK top executives, and related employees (including their spouses and under aged children) who have knowledge of any confidential information that could have any impact to the Company’s share price are prohibited from trading Company shares until 24 hours after the shares are disclosed to the public.”  

The Role Of Stakeholders In Corp Governance

Whistleblower Policy

Whistleblowing System

A.  The Scope, Purpose and Objectives

The Scope :

1.   To outline all aspects necessary to build and implement whistleblowing system as a tool to govern the reporting of violations.

2.   This  Whistleblowing  system  applies  to  the  interest  of  internal  company  that  includes  all employees, Board of Directors, and the Board of Commissioners.

Purpose

1.   This  Whistleblowing  System  is  one  of  the  inherent  supervision  built  by  the  Company  in performing internal controls that are consistent and continuous.

2.   To provide a formal channel for employees in helping to create corporate governance in a professional manner to achieve good corporate governance.

3.   The existence of standards in the expression of aspiration helps the Company to eradicate any violation or potential violation.

Objective

1.   To  help  the  Company  to  improve  labor  productivity  through  eradication  of  all  forms  of violations and potential violations.

2.   To reduce the Company’s losses through early prevention as a follow-up action from reporting through various Whistleblowing channels.

3.   To improve the image and reputation of the Company that has good corporate governance (GCG).

4.   To  improve  the  Company’s  ability  to  win  the  competition  through  increasingly  efficient operational management of the company.

5.   To create a more conducive climate and encourages all employees in reporting to the things that can cause financial losses and non-financial, including those that may undermine the values and image of the company.

6.   To simplify management to deal effectively with all forms of report violations and potential violations.

7.   To protect  the confidentiality  of the reporter’s  identity and  security  information  reportedly managed in a special data base.

 

B.  Rapporteur Protection Policy

The whistleblowing policy is part of the implementation of the company in practicing consistent code of conduct on an ongoing basis, therefore, the Company has committed that any reports of violation or potential violation is set as follows:

1.   Rapporteur Protection Policy

This Whistleblowing Policy provides protection to the rapporteur in form:

a.   The company provides reporting channels such as: a written letter to Whistleblowing Team, Whistleblowing   Box,   Whistleblowing   site   at     www.lippo-cikarang.com   sub    menu Whistleblowing;  Email  Address   whistleblower@lippo-cikarang.com;  and  Whistleblowing Team starts from the Committee, Management, and Facilitator. All these whistleblowing channels will ensure each reporting by well-meaning reporter.

b.   A guarantee of the confidentiality of the identity of rapporteur who provide identity and information which can be used to contact the rapporteur if needed for clarification.

c.   The Company ensures information security and protection against actions of the reported or companies,  in the form of threats  of physical safety,  psychological terror,  the safety of property, legal protection, job security, pressure, delaying a promotion or a salary, demotion or promotion, unfair dismissal, harassment or discrimination in any for m, and harmful notes that in the employee files.

2.   Rapporteur Appreciation

The Company can give appreciation to every rapporteur who was contributing in an effort to help the prevention or capable of proving violation that can harm the company and to minimize the risk of the company significantly.

3.   Sanctions  to  Rapporteur Who  Abuse The System of Reporting  on the Whistleblowing Channel

The Company aims to establish whistleblowing system that can run professionally and that the company will give sanction to the complainant who send the report in the form of slander or false reports. Sanctions given follows the regulation that applies in the Company, and the Company will not guarantee the confidentiality and protection to rapporteur abusing the system whistleblowing system including criminal prosecution as well as related civil unpleasant acts or defamation.

4.   Sanctions to Whistleblowing Team who leaked reporting

The company strongly protect the confidentiality of the report which was reported by the complainant, therefore, each report leaked by Whistleblowing Team will be given sanctions in accordance with applicable regulations.

 

C.  Structure of Whistleblowing System

The company established a whistleblowing system with the structure:

1.   Board of Commissioner

The Board of Commissioners is responsible as overseers of performance and effective implementations of Whistleblowing system in the company and its subsidiaries. Monitoring whistleblowing system implementation may be submitted to the Committee of the Board Commissioner.

2.   Whistleblowing Team:

a.   Whistleblowing Committee

Whistleblowing Committee is chaired by the President Director and Talent Admin (HRG) Corporate Director is responsible for ensuring this Whistleblowing system can be implemented throughout the company and its subsidiaries. Whistleblowing Committee Chairman may appoint the members of the committee including the determination of the functions and duties of each member as well as future membership. The Committee Chairman shall ensure that all reporting followed until finished.

b.   Responsible Whistleblowing

The Whistleblowing Committee will appoint each year the Board of Directors or Senior Executive alternately who is responsible for accomplishing and socializing Whistleblowing system to the business units under its coordination.

c.   Facilitator

Each person in charge of a designated business unit is responsible for establishing each Facilitator in the division unit under its coordination. The Facilitator is responsible for socializing Whistleblowing culture to the units under its coordination.

d.   Investigation Unit

Each entry must be coordinated by the facilitators to be submitted to the relevant responsible person who hereinafter is the responsible to bring any of those reporting on meetings organized by the Whistleblowing Committee to determine the eligibility of the report to be followed up by the investigation unit. This investigation unit consists of Internal Control Unit (SPI) or the internal auditor, and assisted by HR Audit specifically for cases related to Human Resources. This investigation unit is responsible for investigating cases that have been assigned by the Committee to look for the facts, data, and processes that must be performed by internal auditor.

 

D.  Violation Reports

Each employees as regulated in the Code of Conduct must conduct and have moral obligation to report violations or potential violations and are forbidden to remain silent when they see violations or potential violation. The aspects that need to be considered:

1.    Violation Principles

a.   Each report should be placed as the practice of Good Corporate Governance and Risk Management.

b.   The  Company  must  receive  reporting  of  violations  and  potential  violations  from  the Rapporteur.

c.   The principle of the report should contain goodwill and not a personal grief on the policies or management practices or based on bad intentions defamatory and / or false statements that may impose a co-worker or defame / person’s reputation.

2.   Rapporteur

Rapporteur is grouped into 2 (two), such as:

a.   Internal: Board of Commissioners, Directors, Senior Executive, and all employees.

b. External: the working partner, supplier, customer, consultants, vendors, outsourcing, communities and other stakeholders.

3.   Form of Reports

a.   Violations reports or potential violations must be submitted in writing and shall include the identity of employees (for external parties with copy of ID and phone number) and pour chronological occurrence and if possible provide supporting evidence.

b.   Reports with no identity (anonymous) or anonymous letters will not be followed up by the Company.

4.   Potential Violations or Violations That Can Be Reported

a.   Corruption

b.   Fraud

c.   Money laundering d.   Insider dealing

e.   Unlawful acts (including theft, use of force against an employee or leader, extortion, drug use, abuse, other criminal acts)

f.    Violations of tax regulations, or other legislation

g.   Violations of the Code of Conduct or the Company Values or violation of the norms of decency in general

h.   Acts that endanger the health and safety, or jeopardize the security of the company

i.    Actions that could lead to financial and / or non-financial losses against the Company or damages the interests of the Company

j.    Violation all company policies, including but not limited to company regulations, codes of conduct, corporate policies, Standards Operating Procedure (SOP) and implementation instructions

k.   Others who support the creation of Good Corporate Governance.

5.   Time To Report A Violation or Potential Violation

Rapporteur  should  have a  concern  in  the reporting  time,  the faster  the report  will  further facilitate the follow-up investigation, the longer reporting submitted will enable the loss of evidence when an investigation. Rapporteur is expected to transmit its reporting within a period of 2 (two) months after the incident occurred, and specifically for fraud cases a maximum of 1 (one) month after the incident occurred.

 

E.  Delivery Mechanism of Violation Reports or Potential Violation

1.   Report Submission Infrastructure

The company provides a wide range of Whistleblowing infrastructure channels that can facilitate the reporting immediately submit a report, namely:

a.   Written letter to Whistleblowing Team, by direct transfer or by mail. b.   Email address:whistleblower@lippo-cikarang.com.

c.   Company website:   www.lippo-cikarang.com at the Whistleblowing menu.

d.   Whistleblowing box.

2.   Authority to Handle Violation Reporting

a.   In the case of violations committed by members of the Board of Directors or the person who has a special relationship with the members of the Board of Directors or by the Whistleblowing Team, the reporting of a violation or potential violation must be submitted to the Board of Commissioners and if necessary can use independent investigator or an independent auditor.

b.   If   the   offense   was   committed   by   members   of   the   Board   of   Commissioners   or Whistleblowing Team, the report must be submitted to the CEO Corporate, which further handling of the follow-up is carried out by the Board of Directors and when required may use independent investigator or independent auditor.

c.   In the case of violations committed by the employee, then the report must be submitted to the Whistleblowing Team and then the Whistleblowing Team will decide whether or not to follow up or  investigation conducted by the Internal Control Unit (SPI) or the internal auditor or by special audit HR for cases related to Human Resources.

F.  Investigation

For all reports that have been decided by the Whistleblowing Committee for further action through investigation, the investigation process will be conducted with the aim of gathering evidence to strengthen

conclusions from each case that has been investigated. Results of these investigations allows violations or potential violations that exist and / or allow the case to be investigated further to others cases, or the results of these investigations turned out to be not proven or not enough evidence to support the do follow up.

Considering the objectivity and independence, the investigation will be conducted by Internal Control Unit (SPI) or the internal auditor or by a special Audit HR for cases related to Human Resources. In sensitive cases or certain cases for example that must be investigated is Internal Audit (SPI) or the internal auditor or audit HR specifically, the Whistleblowing Committee can decide the investigation performed by other work units or investigator or independent auditor from external parties.

The process of investigation must be free from bias and do not depend on who is reporting or who is the reported and have presumption of innocence first. The reported must be given full opportunity to provide an explanation for proofs given against him, including the defense if needed.

Results of the investigation will be returned to Whistleblowing Committee for further action. If the result of the investigation shows positive violations or potential violations therefore the violator will be given applicable sanctions even for civil or criminal cases can be forwarded through reporting to the authorities which will be coordinated with the Company’s Legal Division.

Selection Policies & Guidelines

Untuk Sementara Konten Belum Tersedia

Affirmation of Anti Gratuaty, Anti Money Laundering, Anti Bribery, And Anti Corruption

As  part  of  the  application  of  the  Company’s  Code  of  Conduct  and  principles  of  Good  Corporate  Governance  by  the  Company,  the  Company  has  implemented  and  affirmed the implementation of anti-gratuity, anti-money laundering, anti-bribery, and anti-corruption in all aspects of   the   Company’s   business   activities.   In   conducting   its  business  activities,  the  Company  always  strives  to  maintain  professional  and  clean  relationships  with  all  business  partners,  customers,  government  officials,  and  all  other  stakeholders.  Every  employee,  including  their  family  members,  are  prohibited  from  accepting  or  giving  any   kind   of   gifts,   promises,   services,   entertainment,   special  acceptance/  treatment  to  and  from  any  party  that may affect the objectivity and professionalism of the employee and potentially lead to conflicts of interest, both with  the  aim  of  enrich  or  benefit  themselves,  others,  or  the  Company,  including  if  the  gift  can  harm  the  state’s  economy or finance.

Sanction  against  Gratuity,  Money  Laundering,  Bribery,  and Corruption Violations
Gratuity,  Money  Laundering,  Bribery,  and  Corruption  are  serious crimes that cannot be tolerated.

Every  Employee  is  required  to  prevent  and  not  conduct  acts of gratuity, money laundering, bribery, or corruption, and  shall  always  be  aware  of  any  indications  or  risks  of  such criminal acts in all aspects of the Company’s business activities and operations.

The  sanctions  imposed  given  to  employees  are  based  on  the  level  of  violations  conducted,  the  sanctions  include  mentoring,  warning,  written  warning,  or  termination  of  employment.  In  2018,  the  Company  did  not  receive  any  complaint regarding gratuity violation

RELATIONSHIP WITH SUPPLIERS, VENDORS (PARTNERS INCLUDING OUTSOURCING) AND CONSULTANTS

  1. Objective Evaluation in Procurement of Company Equipment and Equipment
    Decision making on the procurement of the Company’s equipment and equipment (supply, repair, maintenance, construction of facilities, equipment and equipment) must be based on an assessment of the quality, price, after-sales service and other facilities / benefits that the Company can obtain from the transaction, taking into account:

    a. Offer Price Information
    Transactions between the Company and partners are conducted by tender with the aim of obtaining the level of quality of goods or services as well as optimal purchasing efficiency through comparison of the quality and price levels offered by the Company’s partners. Price confidentiality must be guaranteed.

    b. Discounts / Discounts / Commissions
    All price discounts / discounts / commissions provided by Company associates, both those registered in the names of employees and the Company must be recorded for the benefit of the Company and not the personal interests of employees / individuals in the work unit of the employee concerned.
    In conducting transactions related to partners or suppliers for the purchase of each item and service, the Company requires that each implementation ensures objectivity in the fields of price, quality, availability, requirements and services provided by partners / suppliers.

  2. Prohibition of Receiving Compensation from Suppliers, Vendors (Partners including Outsourcing) and Consultants.
    Each Company employee is prohibited from requesting or receiving financial and non-financial compensation, including promises, entertainment, gifts such as but not limited to wedding gifts for the personal benefit of partners. Exceptions to this provision for matters:
    • Prizes in the form of calendars, agendas and banquets related to work whose value is not material (under USD 20).
    • Sample items given to the Company or individual employees that have no sale value or immaterial value (under USD 10).
    The exclusion provisions above may not be misused or intentionally breaking down nominal values, and if found by employees doing this they will be given sanctions in accordance with applicable Company regulations.

 

RELATIONSHIP WITH SUPPLIERS, VENDORS (PARTNERS INCLUDING OUTSOURCING) AND CONSULTANTS

  1. Compliance Suppliers, Vendors (Partners including Outsourcing) and Consultants Against the Code of Ethics
    Each partner is recommended to understand and follow the Company’s policies and provisions relating to the procurement of goods and services, including the applicable code of ethics. For example, partners who print property marketing flyers / brochures must follow and heed standards and maintain confidentiality that has been mutually agreed upon.

  2. Consultation and Lobbying with Suppliers, Vendors (Partners including Outsourcing) and Consultants
    Consultation and lobbying activities with partners must be carried out with reference to objective principles and criteria. Consultation, lobbying and negotiations by the Company must be carried out with authorized parties appointed or representing the interests of partners / suppliers. Deal with third parties outside the partner’s interests is not permitted under the pretext “for the good” of the partner.

 

Disclosure & Transparancy

Disclosure Policy

 

PT Lippo Cikarang Tbk
Disclosure Policy

 

Disclosure of information has been an important element of Good Corporate Governance. The Board of Directors of PT Lippo Cikarang Tbk (“LPCK”) has regulated the Disclosure Policy that applies to shareholders, investors, public, and other stakeholders. The disclosure is to ensure that the disclosed information is legitimate, accurate, correct, and clear.

Information of LPCK in various method such as in writing, verbal, by telephone, internet, press releases to journalists or investors (press conference), teleconference, or any other kinds of method used by government agencies or other persons to give information to the general public are all covered in this Disclosure Policy.

The standard of Disclosure

  1. Disclosure of material information that has not yet been released by the Company to the public must be informed correctly, accurately, carefully, and completely. The disclosure is so that investors and shareholders receive complete information easily, adequately, and conveniently. The information should be provided in LPCK’s website and the timing must be prudent as well.
  2. Disclosure of information that is ‘Forward-looking’ or anticipated regarding on the direction of the business and the forecast of the Company’s future operations should be made cautiously.
  3. Disclosure of material information that has been disclosed to the public (Material Public Information) should be made clearly and accurately to avoid any confusion. Subsequent information regarding Material Public Information should be clear and consistent to avoid any confusion or miscommunication of the previously disclosed information.
  4. Disclosure of other material (Non-material) should be made truthfully without any intention to mislead others from the actual financial status, stock prices, or operational performance. Disclosure of information should not lead into assumptions that the stock price will rise or fall.
  5. Disclosure of information that might have an impact of the business should be undertaken with such care.

The regulation of BAPEPAM Rule Number X.K.1 : Disclosure of Information That Must Be Made Public Immediately, Attachment : Decision of the Chairman of Bapepam Number : KEP-86/PM/1996 Date : January 24, 1996 states that every Public Company that has been registered and become effective, must inform Otoritas Jasa Keuangan (“OJK”) and disclose to the public as soon as possible, no later than 2 (two) days after the decision or changes in Information or Material Facts that will affect the share value of the Company or Investor’s decision.

The Material Information

Events, information or material facts, that may reasonably effect the price of securities or investors’ decisions may, among other things, consist of:

  1. A merger, acquisition, consolidation or establishment of a joint venture;
  2. A Stock split or distribution of stock dividends;
  3. An unusual dividend;
  4. An acquisition or loss of an important contract;
  5. A significant new product or innovation;
  6. A change in control or significant change in management;
  7. A call for the purchase or redemption of debt Securities;
  8. A sale of a material amount of Securities to the public or in a limited manner;
  9. A purchase, or loss from the sale, of a material asset
  10. A relatively important labor dispute;
  11. Any important litigation against the Company and/or the Company’s Directors or Commissioners;
  12. An offer to purchase Securities of another Company;
  13. The replacement of the Accountant who audits the Company;
  14. The replacement of the Company’s Trustee; and
  15. A change in the Company’s fiscal year.

Authorized Person to Disclose Material Information

LPCK has regulated that the following persons are authorized to respond to inquiries or provide Material Information:

  1. The CEO of LPCK;
  2. The President Director of LPCK;
  3. The Director of Investor Relations; and
  4. Persons designated by 1, 2 or 3.

The Timing of Disclosure of Material Information

LPCK is very strict and careful in keeping material information or other related information so that it will not be released before the designated date, especially during the two-week period prior to the disclosure date.

No employee is allowed to disclose any information at any time unless designated by the CEO, and the President Director of LPCK.

Disclosure Information

DateTitleDownload
9 December 2019Disclosure of Information to Shareholders Regarding Material Transactions and Affiliated Transactions of PT Lippo Cikarang TbkDownload
5 December 2019Information Report or Material FactsDownload
3 September 2019Resignation of Directors Download
31 July 2019Notification of Limited Review of PT Lippo Cikarang Tbk's Semi-Annual Financial Statements for the Period ended 30 June 2019Download
5 July 2019Report on the Designation of Public Accountants and / or Public Accountant Offices Providing Audit Services for Annual Historical Financial Information at PT Lippo Cikarang TbkDownload
12 March 2019Disclosure of Information to Shareholders of PT Lippo Cikarang Tbk ("the Company") in the context of Increasing Capital by Giving Pre-emptive Rights (“HMETD”) Download
17 January 2019Report on the Designation of Public Accountants and / or Public Accountant Offices Providing Audit Services for Annual Historical Financial Information at PT Lippo Cikarang TbkDownload
5 February 2018Information Issuing the Pre-Emptive Rights to The Shareholders In The Event of Capital Incrasing By Providing The Pre-Emtive RightsDownload
6 November 2017Amendments And/Or Additional Disclosure of Information Capital Increasing by Providing The Pre-Emtive Rightss (“HMETD”)Download
2 October 2017Disclosure of Information Capital Increasing by Providing The Pre-Emtive Rightss (“HMETD”)Download
2 October 2017The Resignation of The Board of CommissionersDownload
1 July 2016The Resignation of Member of Board of CommissionersDownload

Responsibility Of The Boards

Committee Charter

DetailIndEng
Charter of the BOCDownloadDownload
Charter of the BODDownloadDownload
Charter of Audit CommitteeDownloadDownload
Charter of Remuneration & Nomination Committee
DownloadDownload
Charter of Corporate SecretaryDownloadDownload
Internal Audit CharterDownloadDownload

Employees Code Of Conduct

DetailDownload
Employees Code of ConductDownload

REMUNERATION POLICY

NOMINATION AND REMUNERATION COMMITTEE

The Nomination and Remuneration Committee is established by and responsible to the Board of Commissioners in carrying out the functions and duties related to the nomination and remuneration of members of the Board of Directors and members of the Board of Commissioners. The objective of establishing the committee is also to assist the Board of Commissioners and their members to perform the duties of in supervising the implementation of the nomination and remuneration process to run objectively, effectively, and efficiently, as well as to improve the quality, competency and responsibility of the Board of Directors and Board of Commissioners in achieving the Company’s vision.

PROPOSAL PROCEDURES UP TO THE REMUNERATION DETERMINATION OF THE BOARD OF COMMISSIONERS

The Company based the remuneration procedure of the Company’s Board of Commissioners on Article 11 Paragraph 13 of the Limited Liability Company Law No. 28 of 2015, which states that salaries, fees and other benefits (if any) for members of the Board of Commissioners from time to time shall be determined by the GMS and such authority by the GMS can be delegated to the Board of Commissioners, in carrying out its functions under the Nomination and Remuneration Committee.

The remuneration of the Board of Commissioners is determined through the GMS, which will provide approval and subsequently authorizes the Company’s Board of Commissioners to determine the remuneration for members of the Board of Commissioners, taking into account recommendations from the Company’s Nomination and Remuneration Committee.

PROPOSAL PROCEDURES UP TO THE REMUNERATION DETERMINATION OF THE BOARD OF DIRECTORS

Remuneration of members of the Board of Directors is determined by referring to the provisions of the Company’s Articles of Association. Determination of the remuneration of the Board of Directors is carried out by taking into account the recommendations of the Nomination and Remuneration Committee, and is determined and ratified at the Company’s Annual GMS.

RISK MANAGEMENT SYSTEM

Risk management system is a system that has an important role in risk management in an integrated manner, from the risk identification process to efforts to mitigate risk early. Through an effective risk management system, the Company can continue to maintain a prudent attitude in addressing the market climate and external economic situation that has the potential to affect the Company’s performance.

In implementing risk management system, the Board of Commissioners and the Board of Directors are assisted by the Audit Committee. The Audit Committee supervises and evaluates internal control mechanisms and risk management to ensure that they are in accordance with the Company’s policies.

Types and Mitigation of Operational Risk
The Company classifies the risks it faces into 4 (four) groups, namely economic risk, political risk, competition risk, and other risk.

Economic Risk

Economic risk arises from both domestic and international economic situations, and focuses on a number of indicators, such as interest rates, inflation rates, currency exchange rates, disposable income, and consumer confidence. To manage this risk, the Company monitors any changes, factoring in effects of fluctuations on construction, raw materials prices, and sales.

Political Risk
Political risk arises from changes in political leadership and structure at the national or local levels. The Company anticipates this risk by monitoring government action and making assessments on potential changes. The Company’s policy is to adhere to the regulations concerning land usage, acquiring permits, and other documents. The latest information on these processes is critical to avoid construction delays and assuring customer satisfaction.

Competition Risk
Competition risk arises from within the dynamic of an optimistic property market by other companies engaging in similar business. To manage this risk, the Company regularly evaluates its strengths and weaknesses in order to develop and create effective strategies.

Types and Mitigation Efforts of Financial Risk
In the implementation of operating, investing, and financing activities, the Company also faces financial risks. To effectively manage such risks, the Board of Directors has formulated a number of strategies and actions for the management of financial risks that are in line with the Company’s objectives. The main guidelines of the policies are: a. Minimize the impact of exchange rates and market risk on all types of transactions b. All financial risk management activities are conducted wisely, consistently, and following best market practices.

The Company’s Financial Risk Management policy covers:

Credit Risk
Financial assets that potentially subject the Company to credit risk consist principally of cash and cash equivalents, trade receivables, and restricted cash in banks, with a maximum exposure equal to the carrying amount of each instrument. There are no significant concentrations of credit risk within the Company. The Company has established credit policies and procedures to ensure the ongoing credit evaluation and active monitoring of accounts.
The Company manages credit risk exposed from its deposits with banks and receivables by monitoring reputation, credit ratings, and limiting the agregrate risk to any individual counterparty. Only reputable and creditworthy banks with a good rating are accepted.

Liquidity Risk
The Company has developed an appropriate liquidity risk management framework for the management of the short, medium and long-term funding and liquidity management requirement of the Company. The Company manages liquidity risk by maintaining adequate reserves, banking facilities, and reserve borrowing facilities by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. The Company is committed to pay all liabilities at their contractual maturity. In order to meet such cash commitments, the Company expects its operating activities to generate sufficient cash inflows. The Company has ample cash and cash equivalents to meet the liquidity needs.

Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in the market interest rates. Currently, the Company does not have interest rate risk mainly because it does not have loans with floating interest rates.

Price Risk
Price risk is a financial instrument value fluctuation risk resulting from changes in market prices. The Company has price risk primarily due to investments classified as available for sale. The Company manages price risk by regularly evaluating the financial performance and the market price of the investment, as well as constantly monitoring global market developments.

Evaluation of the Risk Management System
The Company has implemented a comprehensive risk management practices, each part is actively involved in managing risk, allowing certain risks to be mitigated. The availability of information is used to assess risks that are inherent in the relatively complex Company’s operations. This has provided a significant contribution to the Company. The Company remains committed to always improve the effectiveness and efficiency of the risk management system, allowing the Company to obtain the accuracy in identifying business risks in support of systematic planning and decision making processes.

Review on the Effectiveness of the Risk Management System
The The Company implements risk management for all subsidiaries and parent company through the mechanisms for conducting routine reviews and implementation of key operational performance indicators. Each business unit is involved in managing potential risks by mitigating risks and conducting risk reviews from time to time in line with the business development.

Corporate Social Responsibility

The Company participates in a multitude of ways to improve the welfare of our surrounding communities. We realize that the communities living nearby are also stakeholders, who have their share of contribution to the Company’s business sustainability.

Lippo Cikarang’s CSR activities generally aim to make the best use of Company’s competence in providing optimal benefits to all stakeholders as a manifestation of its social responsibility.

The Company has a mission to promote and apply environmentally friendly and natural concepts within all of its project developments and city management activities. Anyone who walks across our township will clearly see the application of this concept through industrial, commercial and residential zones, which reflect well-conceived planning.

As of 31 December 2018, the Company allocated Rp4,584,533,938 for the entire CSR programs that are implemented in the fields of the environment, employment, occupational health and safety (OHS), community and social development, and customer responsibility.

  1. Tree planting
    Tree planting activities in Central Park Meikarta are carried out together with Little Bee School, Cicau 01 Elementary School and Cicau 02 Elementary School. In addition, education on the use of plastic waste is also carried out. The purpose of this activity is to increase students’ awareness of environmental cleanliness such as to avoid flooding, because garbage is the main influence that inhibits the drainage channel, causing flooding.

     

  2. Handover of Trash Aid Assistance
    The Company provides 25 garbage bin packages to the Bekasi Regency Environmental Agency, 1 trash bin consists of 3 types of waste namely organic, inorganic and hazardous and toxic materials. This assistance is given to support the Office of the Environment in improving cleanliness throughout the Bekasi District area.


     

  3. Making the Park in Cibatu Health Center.
    Making the park at the Cibatu Health Center was made as a green open space, at the event also conducted greening. This activity also aims to provide awareness to the people of Cibatu to love the environment and greening it.


     

In 2018, The costs incurred by the Company for CSR programs in the environmental sector amounted to Rp15,000,000.-.



 
  1. Fire Fighting Training
    The company conducts fire fighting training in the Lippo Cikarang office environment. This activity was carried out on July 17, 2019 and July 3, 2019 with the aim of training employees to be alert in dealing with fires in the office environment.




  2. Blood Donation
    In collaboration with PMI Bekasi District and Siloam Hospitals Lippo Cikarang, the Company is organizing a donor danar program aimed at employees and the public. The program, which is held every three months, is implemented by the Company to support PMI in blood supply. Blood donor participants in 2019 will reach 239 participants.


In 2018, the costs incurred by the Company for CSR programs in the fields of Employment, Occupational Health and Safety amounted to Rp949,485,579.-.




  1. Lippo Cikarang Teaches
    KThe activity that has been carried out every year is a program in the field of education that focuses on introducing professions / jobs, so that students can get to know more of the existing professions. This program is also taught about using plastic wisely so that participants can find out the adverse effects of plastic. At the event, plastic alternatives made from environmentally friendly materials were also introduced.

    From this program the Company also provided assistance in the form of learning equipment. Lippo Cikarang in 2019 was conducted in 5 (five) different schools, including; SDN 03 Cibatu, SDN 02 Cicau, SDS Ekklesia, SDS Don Bosco III, and SDN 01 Cicau with a total of 1,224 students from all schools.

  2. Counseling Dengue fever
    In the rainy season which occurred in 2019, resulting in many cases of dengue fever in the districts of South Cikarang and Central Cikarang which is part of the Lippo Cikarang region. In connection with this the Company conducted a dengue counseling program that was created with the aim of reducing dengue fever cases. This counseling has been done in Pasirsari Village and Perum Taman Sentosa.

    In this program the Company collaborates with health experts from Siloam Hospitals Lippo Cikarang in providing counseling materials and also providing lemongrass seedlings that can be planted to help prevent the development of mosquito larvae that cause dengue fever.

    Pada program ini Perseroan bekerjasama dengan tenaga ahli kesehatan dari Siloam Hospitals Lippo Cikarang dalam memberikan materi penyuluhan dan juga memberikan bibit tanaman sereh yang dapat ditanam untuk membantu mencegah perkembangan jentik nyamuk penyebab demam berdarah.

  3. Clean Water Assistance
    In the dry season that occurred in 2019, the Company provided assistance in the form of a supply of clean water, which was distributed to several regions, including; Medalkrisna Village, Pasirranji Village, Sukasirna Village and Cicau Village



  4. Food Packages
    The company participates in delivering basic food packages to the community in Jayamukti Village and Pengarengan Village in cooperation with Bekasi Metro Police and the TNI. This activity is carried out to help poor people meet their daily needs.




  5. Holidays and religious celebrations
    The company held an Iftar with orphans and a joint Christmas celebration at the Lippo Cikarang neighborhood. The Company provides assistance for qurban Eid al-Adha animals in the form of cows and goats to the Cikarang Selatan and Cikarang Subdistricts as well as villages and several agencies and community organizations.


  6. Little Doctor Training
    In collaboration with the Cibatu Puskesmas, the Company participates in the Little Doctor Training program held at the Cibatu Puskesmas. Participants in this activity are students from schools in the working area of Cibatu Health Center, the purpose of this activity is to make students as pioneers in school health.



  7. Renovation Assistance
    To improve the work of the State Security Apparatus, the Company provided assistance to renovate the Lemahabang guard post on February 14, 2019 and the lawn mower machine. On May 3, 2019 also handed over paving blocks to KOREM 051 / Wijayakarta which will be used at the KOREM 051 / Wijayakarta office location.




  8. Vocational Teacher Visit
    The visit of SMKN 1 teachers to the Lippo Cikarang WTP (Water Treatment Plan) is a field review or field study. The purpose of this activity is to learn directly in the field of the Lippo Cikarang water treatment process and also for future apprenticeship collaborations.



  9. Go Green Outreach
    In line with the Lippo Cikarang CSR program “Go Green” which is reducing the use of waste and using environmentally friendly plastic, the Company in collaboration with the Midori school held a Go Green and Japanese Culture Festival. The main purpose of this activity is to green and introduce Japanese culture such as learning to make Japanese special food to use traditional Japanese clothing.




In 2018, The costs incurred by the Company for CSR programs in the field of Social and Community Development amounted to Rp3,493,548,359






















The Company has a high commitment to consumers which can be seen in the Company’s values, namely focus on customers. Consumer responsibility covers aspects such as Pre-sales, product quality, and after-sales services. In each of these aspects, the Company provides support facilities including the provision of channels that can be used by customers to communicate with the Company and provide advice and input. The facility is to provide comfort for consumers, maintain the quality of the products offered and facilitate good relationships with customers. In this case the Company optimizes the use of information technology.
The Company periodically conducts a number of activities to maintain and maintain communication between residents and Lippo Cikarang in order to create harmonious communication and relations between communities within the Lippo Cikarang environment.
Throughout 2019, the Company has carried out 8 (eight) times the activities of socialization and communication with customers, including;

  1. Hospitality between RT / RW and community leaders with TMD LC, Halal Bi Halal in the fasting month and work meetings conducted twice a month with the aim of coordination and evaluation and receive complaints from residents so as to reduce complaints that enter.
  2. Routine Gathering with residents in the “Clean Friday” Program to cluster and disseminate information about the TMD work system once a month with the aim of increasing customer knowledge about the company’s services to residents.
  3. Celebration of major holidays, namely the event August 17 and Night Run.
  4. Tenant Gathering in the framework of Gathering as well as the Socialization of Estate Regulations related to Wastewater Connections with the aim of increasing environmental awareness and compliance with applicable regulations.
  5. Tenant Gathering in order to facilitate the Bekasi District Head’s program to socialize Regulation 09 of 2019 concerning Expansion of Employment Opportunities.
  6. Tenant Gathering in the context of the Socialization of Environmental Monitoring Responsibility by presenting speakers from the Bekasi Environmental Department.
  7. Routine Visitation to Tenants in order to strengthen relations, convey the latest information and at the same time convey the latest information to tenants and receive complaints / complaints directly from tenants.
  8. Visitation in order to respond to information / complaints related to services so that they can quickly resolve incoming complaints.

Regarding the handling of consumer complaints, the Company provides several complaint services, namely as follows:

  1. Customer Relationship Management System
  2. Call centers through 24-hour telephone lines for consumers at 021-80820800
  3. Emergency Call (021-89908911), residents can access assistance within the scope of the Lippo Cikarang area.
  4. While suggestions or complaints can also be sent online to the Customer Service team at: cs@lippo-cikarang.com

In 2019, the Company received 3,280 complaints. A total of 2,863 complaints submitted to the Company have been addressed properly through the mechanism of meetings with residents and tenant gatherings, and as many as 382 complaints are still being addressed.

The costs incurred by the Company for CSR programs in Responsibility to Consumers amounted to Rp126,500,000