Fraud andor corruption allegation

290 PT Telkom Indonesia Persero Tbk

d. Code of Ethics

Behaviour of Directors and Management that are not commendable may potentially tarnish the reputation of Telkom or result in losses for us. The behaviour of Directors and Management that are not commendable, namely, among others, conlict of interest with Telkom, or provide a misleading information to the public. Telkom has also developed a working mechanism between the Audit Committee by Internal Audit and Investigation Committee, including protocols with Telkomsel to follow up on complaints received. In addition, the whistleblower program has also been socialized and has been understood by employees. CHART OF HANDLING COMPLAINTS OF TELKOM AND ITS SUBSIDIARIES Agreement of Follow Up Letter of President Director to Subsidiary Cc. 1. President Director of Telkom 2. Audit Committee 3. Subsidiary IA Substance Evaluation TPTA Combined UBIS Follow Up TPTA Subsidiary Note of TL Note of TL Documentation Archives Follow Up TL Combined? End INVESTIGATION PROCESS WHISTLEBLOWING AND FOLLOW UP A udit C ommitt ee Pr esident Dir ect or UBIS In v es tiga tion C ommitt ee Subsidiary HR Expert TPTA? TPTA Report The Audit Report Follow Up Report Team Combined? Investigation by Subsidiary Letter of Answers Subsidiary Discussion Follow Up? Subsidiaries? Investigation Team Case Review The Appointment of Expert The Result of Investigation Follow Up Report TPTA Report Need Expert? The Investigation yes yes yes yes yes Cc yes No No No No No No CONSISTENCY OF GCG IMPLEMENTATION In our environment, understanding of GCG continues to improve as in line with the experience and lessons learned for managing GCG. We believe that GCG is a dynamic system and from time to time should be strengthened and updated to conform with the changes of business and business environment. By continuously updated, the GCG implementation is expected to contribute signiicantly to support the growth of the business and not the other way, which is considered as an impediment to organizational agility. GCG implementation is integrated with compliance management, risk management and internal control. This practice requires us to be able to manage GCG to be in line with business performance management. The implementation of risk management was not easy and takes time to master the competencies, gain accuracy in recognizing the risk of the industry and the organization, and be able to make a risk culture as part of the culture of the employees. Eventually, by dint of seriousness, consistency and patience of management, obtained results of the current risk management which has given a new color and contribute positively to the process of planning, decision-making and strengthening the implementation of GCG in Telkom Group. Some major activities that maintained the consistency of its application to support GCG practices which in line with business management are includes: yes 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.