Good Governance in Practice

As one of the country’s leading public companies, Matahari seeks to create sustained growth and value for the shareholders by operating its business responsibly and acting in the best interests of all its stakeholders. In so doing, the Company is strongly committed to upholding the core principles of good corporate governance as defined by the Organisation for Economic Cooperation and Development (OECD): Transparency, Accountability, Responsibility, Independence, and Fairness. These principles, outlined below, form the basis of the Company’s Code of Conduct.

1. Transparency
The Company readily provides clear, accurate, complete and timely information to the shareholders and other stakeholders, in the form of financial statements, investor information, and other relevant materials or disclosures, which are made available on the corporate website, www.matahari.co.id, and disclosed in the Company’s annual reports.

2. Accountability
The Management accepts its responsibility to the shareholders and other stakeholders with regard to the implementation of the Company’s strategies and achievement of its objectives, and is ready to account for all its actions and decisions to the Board, the shareholders, and other interested parties. The Board of Commissioners takes responsibility for the effective supervision of Management and its accountability to the shareholders.

3. Responsibility
The Company complies with the relevant laws and regulations and respects the rights of all the stakeholders. It also fulfils its responsibility to protect and promote the sustainability of the environment, public welfare and healthy living.

4. Independence
The Company manages the business in a professional manner, without any conflict of interest or influence or pressure from any party that is in contravention with the laws and regulations. This is demonstrated in the Company’s objective decision making, which is free of any intervention from third parties.

5. Fairness
The Company treats all the shareholders equitably, irrespective of whether they are majority or minority shareholders, and guarantees the rights of the shareholders and stakeholders. The Company therefore always provides the same opportunities to all shareholders to vote and challenge the Company at the AGM, and treats all stakeholders fairly by providing equal opportunities with regard to employment, training, promotion, access to information, and so on.