fraud andor corruption allegation

291 PT Telkom Indonesia Persero Tbk perforManCe ManageMent SySteM To embody the GCG principles, accountability principle in particular, we manage the employee performance accountability in an Employee Performance Management System through a Company policy PR.208.01r00PS730 COP-J20000002014. As the intent and purpose of the enactment of this policy, the objective, fair, transparent, and integrated principles that applied by referring to the guidelines of measurement and assessment of responsible performance in the mechanism of management contractindividuals performance system through the establishment of performance indicators according to the scope of duties and role of the units and individuals in the organization and the establishment of agreed targets which refer to the Company’s performance targets as set out in the Company’s annual plan. Target performance is gradually lowered at the level of the unit, sub-unit to the employee by taking into account the principles of Speciic, Measurable, Achievable, Realistic, and Time Related “SMART”, while the evaluation is performed on a regular basis daily, weekly, monthly, quarterly, annually in accordance with the performance indicators measured in management’s review mechanism, which is supported by some applications online information systems. appliCation of integrity paCt anD StrengtHening anti gratifiCation effortS Consistency of application of the Integrity Pact has started since issuing a policy in 2009 that sharpen the application of GCG, particularly with regard to the GCG implementation area, namely, code of integrity, business ethics, avoiding conlict of interests, prohibition on gratuities, prohibition on transactions with the insiders, maintaining conidentiality of information, prevention of actions to enrich themselves or other party that adversing inancial company in the area of procurement and partnership, service integrity and corporate inancial report integrity. Initiatives to sharpenstrengthen GCG through Integrity Pact policy, is still deemed necessary to give special attention to the speciic areas related with the prevention of potential inancial loss of the Company and for the realization of “island of integrity” as one of the tools or instruments of bureaucratic reform and prevention for Corruption, Collusion and Nepotism CNN or “KKN” with the concentration of eforts on the creation of transparency, accountability and participation. In a general interpretation, Integrity means consistency and unwavering persistence in upholding the noble values and beliefs. A leader who has integrity will gain trust from its corps. According to some references, Integrity simply means the only belief against its values embraced by the mind and the action performed. A person of integrity have beliefs, minds and actions that are intact and have compatibility of each other. proCeSS ManageMent WitH iSo StanDarDS Since 1996, we have consistently been implementing a quality management system based on ISO standards and in 2001, the application is integrated with the criteria of performance advantage in Malcolm Baldrige basis. Both application of the quality management systems ISO and Malcolm Baldrige is none other than to establish governance process and accountability for performance through the implementation of discipline process and good documentation in ISO basis and the improvement of performance advantages of the Company which refers to the assessment performance excellence in Malcolm Baldrige basis. In 2013, the Company assessed its performance advantage by KPKU assessment Team from the Ministry of State-Owned Enterprise and internal assessment self assessment is conducted at the level of Business UnitDivision. Certiication of IMS Integrated Management System: ISO 9001, IS0 27001 and ISO 22301 by obtaining simultaneously THREE ISO CERTIFICATES, namely ISO 9001 Quality Management System QMS, ISO 27001 Information Security Management System ISMS and ISO 22301 Business Continuity Management System BCMS. Corporate governanCe planning appliCation Consistency to manage a good planning is one of the main concerns of management in implementing GCG. At the discretion of the Company, the management try to ensure that the planning of the Company is performed with more systematically, not complicated, orderly, integrated, conformed with the vision and mission of the Company, and can be carried out properly in accordance with what had been planned in advance; also, easy to evaluate and control during the execution later. Generally, model of corporate planning consists of 3 three stages of planning, namely: 1. Conformation with stakeholder expectations. 2. The formulation of corporate strategy strategic formulation. 3. The implementation of business strategy. 292 PT Telkom Indonesia Persero Tbk GCG’s role is to guarantee and ensure that the entire process and planning activities can be well-performed, accountable, transparent and able to provide a sustainable added value for the Company, and certainly, not contrary to the interests of all stakeholders. In order to constantly updating the development and dynamics of the business and operations, the company performs an update on the company’s planning policy through the Company’s Strategic Planning System number. PD.105.00r.00HK.200COP-D00300002014 dated January 28, 2014. appliCation of it governanCe As a company engaged in the business of information and customers’ datainformation distribution whose security must be guaranteed, we always try to take advantage of the widest possible use of technology in the management of the company as directly improving the quality of implementation of corporate governance. Almost all points in the value chain of the company, which includes network operation of the entire infrastructure of production tools, all important aspects of management such as inance, logistics, human resources as well as services to the employees, customers, suppliers and other stakeholders, have been integrated into the IT network. Framework for the management of IT governance refers to the Control Objectives for Information and related Technology “COBIT” version 5.0, which adapted into the company regulation under number PD 404.00r.00HK- 200COP-C03000002014 dated 15 July 2014 regarding Guidelines and General Policy of Information Technology Governance of Telkom Group which aimed, among others, to provide the controlling principles in the governance and management of IT that includes 5 ive main principles as follows: 1. Compliance with the needs of stakeholders meeting stakeholder needs; 2. Covering the whole process of the company in end- to-end basis covering the enterprise end-to-end; 3. Implementation of a single integrated framework applying a single integrated framework; 4. Overall pattern approachholistic approach enabling a holistic approach; 5. The separation between governance and management of IT separating governance from management. One of purpose of this decision is to provide clear direction that the governance of Information Technology IT solely based on the creation of value value creation which is based on the needs of the Company’s stakeholders stakeholder needs by way of realizing the business beneits beneit realization, optimization in the management of risk risk optimization and optimization in the management of resources resource optimization. The other purposes of this decision are to increase the efectiveness and eiciency of business processes of IT, IT productivities, availability of information that is complete, comprehensive, accurate and punctual to support the management in decision making process, in order to fulill the business needs, improving performance and the Company’s growth sustainable. Governance implementation in the operational environment is performed by applying IT General Control ITGC, which includes domain process of Program Development PD, Program Change PC, Access to Programs Data APD and Computer Operation CO. Some examples of IT governance practices in the operation of the Company are management of change requests, management of user access review, password management, management of audit logaudit trail, management of security systems, and management of end user computing. For completeness of IT governance policies, a several other regulations have also been regulated, such as, the Company’s Regulation with regard to security of information systems, Standard User Access, Standard IT Services under ISO 20000 basis, Standard for IT Service Continuity Management based on ISO 27031, Standard for Application Development of Information System with consideration on the security aspects Secured Software Development Life cycle and other procedures related. The Strategy and IT Governance Unit is the Company’s structural work unit which responsible to strategize and planning for the Company’s IT and the establishment of IT Governance of the Company, beginning from the policy, standards, as well as the socialization and implementation process in practice with monitoring mechanism and the evaluation of the efectiveness of implementation. Meanwhile, the management of the company’s IT operations ia performed by IT management Unit, which are, among others, is responsible for managing the services and components of IT services, both in the sphere of software and hardware, including the development of IT services. it audit In ensuring compliance with IT governance, we performed internal and external control. Internal unit in question actively participate in ensuring the implementation of the design of controls to operate efectively through the implementation of Control Self Assessment CSA Key Control KC ITGC attached to the unit periodically by involving internal Quality Control unit. Furthermore, Internal Audit and External Audit conducted an audit on the implementation of KC ITGC entire unit that implements the KC.