Commitment to Upholding Good and Ethical Business Governance: Pupuk Indonesia Wins the 2024 Indonesia Regulatory Compliance Awards

  • Posted by User01
  • 6 June2024
  • 20:10WIB

Jakarta, June 5, 2024 – Due to its consistent commitment to maintaining good and ethical business governance, PT Pupuk Indonesia (Persero) has won the 2024 Indonesia Regulatory Compliance Awards (IRCA) with a gold rating. This award, given by Hukumonline, recognizes companies for their adherence to the applicable laws in Indonesia.

"In conducting its business activities, the Pupuk Indonesia Group remains committed to creating sustainability supported by adherence to laws and regulations, which is a fundamental principle in running a business. Pupuk Indonesia is immensely grateful to the organizers for this award," stated Benediktus All, Senior Vice President of Legal Affairs at Pupuk Indonesia.

As a state-owned enterprise (BUMN) supporting national food security, Pupuk Indonesia considers legal compliance a crucial aspect that the company must uphold. Given the ever-evolving and changing regulations, legal compliance is not just an obligation but a moral and ethical responsibility that must be upheld.

The complexity and dynamics of regulations require business actors to continuously adapt to ensure that business governance operates well and with integrity in accordance with existing regulations. The context of legal compliance is not just about how compliant a company is with its legal obligations, but also about its strategy, commitment, innovation, and more.

"Once again, we express our gratitude for the award and the support of all the directors, management, and all personnel of the Pupuk Indonesia Group," said Benediktus.

For the first time, Hukumonline organized an award event for corporate legal compliance practices in Indonesia. This innovation is realized through the 2024 Indonesia Regulatory Compliance Awards (IRCA) as a medium to rank companies based on their legal compliance strategies with the laws and regulations in Indonesia.

"The Indonesia Regulatory Compliance Awards are given by Hukumonline to companies in the context of legal compliance in Indonesia. This context of legal compliance is not just about how compliant a company is with its legal obligations, but also about its strategy, commitment, innovation, and more," explained Katon Baskoro, Research & Awards Manager at Hukumonline.

Katon further explained that the ranking is done by classifying companies based on their respective characteristics. These characteristics are shown through industry sectors, business complexity, and the level of regulation applicable to the company.

The ranking uses primary data provided directly by the companies in the form of descriptions of three parameters. First, the compliance strategies implemented by the company. Second, the performance of management or organizational governance by leaders in executing legal compliance obligations. Third, the legal compliance control by the parent company over its subsidiaries.

The assessment parameters are designed to elaborate on the evaluation matrix information in the 2024 IRCA. The evaluation will be based on varying regulatory complexities. The validation parameter is the Indonesian Standard Industrial Classification (KBLI) adhered to by each company.

First, the managerial performance assessment by leaders responsible for legal compliance within the company in establishing an excellent compliance management system. This assessment includes managing human resources for legal compliance efforts, evaluation and monitoring mechanisms for compliance efforts, efforts to build collaboration and maintain integrity, and efforts to address non-compliance within the company.

Second, the strategy parameter applied by the company to maintain and enhance compliance with various regulations issued by central and local government authorities.

This encompasses business processes within the company, internal socialization strategies regarding regulations, control over regulatory compliance in each company division, policies and mechanisms for creating internal policies that support compliance, evaluation and reporting processes on compliance performance, and innovations or technologies used to ensure regulatory compliance.

Third, the control strategy within the company (as a parent company) for implementing legal compliance issued by central and local government authorities in its subsidiaries.

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