Good Corporate Governance

COMMITMENT ON GCG POLICY IMPLEMENTATION

MNC Group understands the implementation of Good Corporate Governance (GCG) serves as basic needs and foundation in undertaking the Company’s business activity. This commitment consistently upholds the ethics and integrity of the Company’s management aims at sustaining performance improvement, ensuring the fulfillment of stakeholder's rights, as well as enhancing compliance with prevailing laws and regulations.

The Basis for Corporate Governance Implementation

MNC Group is fully committed to implementing GCG principles as the foundation in creating sustainable added value for the interest of shareholders, the public at large, and various other stakeholders (employees, consumers, regulators, business partners, and so forth) for both short- and long-term.

In realizing a comprehensive GCG, MNC Group adopts the applicable best standards in accordance with the principles of Corporate Governance (CG) from the Governance Policy National Committee (KNKG), namely transparency, accountability, responsibility, independence, equality, and fairness.

The implementation of MNC Group GCG is coherently realized from three aspects of the governance system, which are governance structure, governance process and governance outcome aimed at improving investor's trust, protecting the stakeholders’ interests, providing a positive contribution to the financial service industry and market in general.

Governance Framework

The effectiveness of governance implementation can be seen from the adequacy of governance structure and infrastructure to enable outcome from GCG principle process, which meets the stakeholders’ expectations.

Included in the governance structure are the Board of Directors, the Board of Commissioners, Committees, and the Company’s Units. While the governance infrastructure covers policies and procedures, management information systems, and primary duties and functions of each organizational structure.

While the governance process related to the governance implementation, and governance outcome is a result of CG implementation quality.

In accordance with the Company’s Articles of Association, MNC Group Board of Commissioners carries out the oversight function to ensure the conformity of the Company’s management by the Board of Directors with prevailing laws and regulations. While the Board of Directors undertakes management functions professionally and prevents the conflict of interests.

Based on the governance principle, the Company has developed a GCG structure that covers GCG structure and GCG infrastructure in order to implement GCG mechanisms according to applicable regulatory and best practices.

Implementation of CG Principles

As the realization and commitment of MNC Group in implementing comprehensive GCG, the Company implements CG principles in conducting business activities, as follows:

Transparency

Transparency in disclosing material and relevant information related to the Company’s financial and non-financial conditions. The Company realizes this transparency by always striving to pioneer the disclosure of financial and non-financial information, not limited to mandatory information, to various parties with concerns. One of the ways is by conducting Public Expose to meet capital market requirements in order to expose the Company’s performance to shareholders, investors, analysts, and the media.

The Company conducts the disclosure of such information in compliance with applicable laws and regulations and as recommended by CG practice.

The application of this transparency principle does not reduce or waive the Company’s obligation to keep specific confidential information in accordance with applicable laws or regulations or on the basis of business considerations.

Accountability

The clarity of functions, execution, and accountability of each organ and the whole range of the Company, so that the company management can be effectively carried out. The Company believes that accountability relates to the existence of systems that control the relationship between individuals and/or organs in the Company and the relationship between the Company and the parties with concerns. The Company applies the principle of accountability as one solution to overcome differences of individual interests with the Company’s interests and the Company’s interests with the interests of the parties with concerns.

In achieving this accountability, the Company formally specifies details of clear duties and responsibilities for each position taking into account segregation of duties and checks and balance mechanisms. Not only that, the Company strives to provide adequate resources so there will be no overlap of tasks and responsibilities.

Responsibility

It is the conformity in the management of the Company with applicable laws and principles and sound corporate principles. The Company is responsible for complying with applicable laws and regulations, including the provisions pertaining to employment, taxation, business competition, occupational health and safety, and so on. All persons in the Company are also responsible for complying with policies, working procedures and other internal regulations in all work activities. The Company implements responsibility by encouraging all individuals and/or organs of the Company to recognize their rights and obligations, duties and responsibilities and authorities.

Independence

It is a condition of the Company’s professional management without conflict of interest, dominance, and the influence/pressure of any party in contrary to applicable laws and regulations and CG principles. This independence is implemented by always respecting the rights and obligations, duties and responsibilities and authorities of each organ in the Company. The Company believes that by implementing the independence principle optimally, all the Company’s organs can work well and maximally in making the best decisions and management for the Company.

Fairness

It is the application and fulfillment of the rights of the stakeholders without any distinction of treatment. The Company guarantees that every interested party shall receive fair and equal treatment in accordance with prevailing laws and regulations. In addition, the Company will accept and treat every employee fairly and free from bias due to differences in ethnicity, religion, origin, gender, or other matters that have nothing to do with performance.