b. More people become reluctant to commit violations as there are more willingness to report
violations because of the belief in such effective reporting system; c.
The availability of an early warning system mechanism on the possibility of problems resulting from a violation;
d. The availability of an opportunity to deal with internal violations first, before it becomes a public
violation issue matter; e.
Reducing number of risks the organization deals with, resulting from violations in terms of finance, operations, law, safety, and reputation;
f. Reducing the costs in handling the consequences of a violation;
g. Increasing the C
ompany’s reputation in the eyes of the stakeholders, regulators, and general public; and
h. Providing the Company with input to look beyond critical areas and working processes that
have weakness of internal control, and to design the necessary corrective actions.
4. Scope
The scope of this Violation Reporting System covers the management of violation reporting from employees and the public related to the operations of PT. Bakrieland Development, Tbk both in
the holding company and its subsidiaries.
Aspects of the guidelines on violation reporting system WBS consist of the Special Team TKPP structure, the reporting mechanism, the protection of the reporting parties, as well as monitoring
and review. The TKPP structure describes the position, duties and functions of the Special Team for Managing the Violation Reporting. The reporting mechanism controls issues and procedures
for violation reporting. The protection of the whistleblowers contains the Companys commitment and technical aspect on how the Company provides a guarantee and security to the whistleblower
who are in good faith.
5. Legal Regulatory Basis
a. Related regulations in Indonesia
Several regulations which partially deal with violation reporting and protection of reporting parties are as follows:
1 Law No. 28 of 1999 regarding the Organization of a State which is Clean and Free from
Corruption, Collusion and Nepotism article 9; 2
Law No. 31 of 1999 on the Eradication of Criminal Acts of Corruption article 31 and article 41 paragraph 2 item e;
3 Law No. 15 of 2002 jo Law No. 25 of 2003 regarding Money Laundering Act articles 39
to 43; 4
Law No. 13 of 2003 regarding Labor article 153 paragraph 1 letter l and article 158 paragraph 1 letter i;
5 Law No. 7 of 2006 on the Ratification of United Nations Convention Against Corruption
UNCAC, Section 33 of UNCAC; 6
Law No. 13 of 2006 regarding Witness and Victim Protection article 10 paragraph 1; 7
PP No. 71 of 2000 on the Procedures for the Performance of Public Participation and Grant of Awards in the Prevention and Eradication of Corruption Act article 6;
8 PP No. 57 of 2003 regarding the Special Protection Procedures for Reporting Parties
and Witnesses of Money Laundering Act; 9
Chief of Police’s Regulation No. 17 of 2005 on Special Protection Procedures for
Reporting Parties and Witnesses of Money Laundering Act; 10 Bapepam Regulations and its implementation;
11 Law on Limited Liability Company.
b. The Company’s Internal Regulations
In PT Bakrieland Development Tbk, implementing WBS regulations are focused on the existing internal regulations. The C
ompany’s internal regulations are as follows: 1
The Company’s Articles of Association; 2
General Guidelines for Good Corporate Governance GCG Code; 3
Guidelines for the Board of Directors and Board of Commissioners Board Manual; 4
Corporate Code of Conduct and Work Ethics; 5
Policy on the Implementation of Violation Reporting System Whistleblowing System Policy.
6. Definition
a. What is a
“violation” wrongdoing?
The definition of “violation” wrongdoing as in the guidelines, is the act that disobeys the laws
and regulations; related industrial regulationsstandards and internal regulations of the organization, and viable to be reported. Included in such violating activities among others are:
1 Violating the legislation, for example, falsification of signature, corruption, embezzlement,
mark-ups, use of narcotic drugs, and destruction of goods. 2
Violating the Comp any’s ethical guidelines, such as conflict of interest, harassment,
engagement in prohibited community activities. 3
Violating the general accounting principles. 4
Violating the Companys operational policies and procedures, or any other policies, procedures, or regulations deemed necessary by the company.
5 Other fraudulent actions which may result in financial or non-financial loss.
6 Actions of occupational hazards.
b. Who are referred to as “reporting parties” whistleblowers?
The party enforcing violation report whistleblower is generally an employee of the organization itself internal party, however it is possible that the reporting parties
whistleblowers are external customers, suppliers, general public. The reporting parties whistleblowers should provide clear evidence, information, or indication of reported violation
so that it can be traced or followed up. Without adequate information, the report will be difficult to follow up.
c. The difference between Witness and Reporting Party Whistleblower
A Witness is a person who personally sees and hears or experiences an act of violation committed by the reported partyies and is willing to provide a testimony before the court. A
whistleblower may be a witness, but not all whistleblowers can be witnesses.
A whistleblower is someone who reports a violation, but may not have seen nor hear the act of violation itself, but has the documentation or tool of evidence records, pictures, etc. that
proof a violation has occurred.
d. Company is PT Bakrieland Development Tbk. and its subsidiaries viable for using the
directives outlined in this Guidelines;
e. Corruption is a fraudulent or unlawful conduct carried out by members of the Board of
Directors, members of the Board of Commissioners, the Management, Manager or employee of the Company,
againts the Company’s interests, or the abuse of authoritytrust of the position given to them in order to enrich themselves, others or corporation;
f. Fraud is a dishonest act that poses a potential or actual loss to the Company or employees
of the Company or any other individuals, but not limited to the embezzlement of money and goods, fraud, forgery. Also included in this act is falsification, concealment or destruction of
documentsreports, or the use of false documents for business purposes, or leaking C
ompany’s information to external parties;
g. Investigation is an activity to seek for evidence related to the violations committed by
employees or companies, which have been reported through Violation Reporting System Whistleblowing System;
h. Employee is an individual who works for the Company or earns a salarywage from the
Company. Included in this definition are members of the Board of Directors, members of the Board of Commissioners, members the Board of Commissionary Committees.
i. Administrative Immunity is a protection granted by the company to the whistleblower as a
result of hisher involvement in reporting the violation. An example is a fraud committed by a group of employees and heshe receives a share of the fraudulent results, but heshe reports
the fraud and returns the portion heshe received.
j. The Designated Officer is an employee appointed to hold one of the positions in the
organizational structure responsible for implementing the Violation Reporting System Whistleblowing System; such as the officer who receives violation report, the reporting
investigating officers.
Section II
TKPP STRUCTURE
1. Structure and Position of TKPP
In Act No.40 of 2007 concerning the Limited Liability Company UUPT, Article 1 paragraph 5 states that the Board of Directors is a Corporate Body authorized and fully responsible for the
management of the Company for the interest of the Company, in accordance with the purposes and objectives of the Company and for representing the Company, both within and outside the
court in accordance with the provisions of the Articles of Association. On the other hand, the Board of Commissioners according to Article 1 point 6 of the Act on Limited Liability Company UU PT
is a Corporate Body whose duty is to conduct general andor special supervision in accordance with the articles of association and to advise the Board of Directors.
Considering that WBS is part of the Companys control to prevent fraud, this is a matter of the management of the Company, thus the C
ompany’s management issues in the implementation of the Violation Reporting System Whistleblowing System lies in the Board of Directors, especially
the Presiden Director. The Board of Commissioners shall supervise the adequacy and effectiveness of the implementation of the system.
Based on the above, through the Decree Letter of the Board of Directors of PT Bakrieland Development Tbk No.118SKDir-BLDVIII09, the Board of Directors have decided to establish
and appoint the Special Team to Manage Violation Reporting TKPP. This team reports directly to the Board of Directors of PT Bakrieland Development Tbk., while monitoring activities on the
implementation of the Guidelines of Violation Reporting System Whistleblowing System will be assigned to the Audit Committee.
The members of the Special Team for Managing Violation Reporting TKPP consist of: 1
Internal Audit Division Head, 2
Corporate Legal Division Head, 3
HRDGA Division Head, 4
Corporate Secretary.
In performing its functions, the team will be independent and has access to the top management of the Company.
Figure 1: The Position of the Special Team for Managing the SPP
2. Duties and Responsibilities of TKPP
