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, 4 February 2014—IFC, a member of the World Bank Group, has supported Indonesia’s Financial Services Authority in developing and launching a corporate governance roadmap and manual to raise the transparency and accountability of Indonesian companies, improve investor protection, and strengthen the business environment.
“The main goal of this roadmap is to serve as a milestone in our efforts to improve the implementation of corporate governance practices in Indonesia,” said Muliaman D. Hadad, Chairman of Indonesia's Financial Services Authority. “This Roadmap will be the main reference in the process of improving good governance practices and regulations for companies in a comprehensive manner, particularly issuers and listed companies. This roadmap will also make a positive contribution to improving good corporate governance, as well as be on a par with corporate governance in the ASEAN region, as we head towards the setting up of the ASEAN Economic Community (AEC) by 2015.”
Developed by Indonesia’s Financial Services Authority, the Corporate Governance Roadmap analyzes existing gaps in corporate governance practices and recommends changes in relevant regulations and listing requirements, which are expected to take place by June 2015. Among the roadmap’s key recommendations are enforcing a new good corporate governance code, implementing a code of conduct for market participants and whistleblower policies, improving disclosure policies on ultimate ownership and on board members’ qualifications, and evaluating board performance.
The Corporate Governance Manual is a learning tool developed by IFC to provide best-practice guidelines to companies, board members, and policymakers. The Indonesia manual includes a specific chapter on the corporate governance framework and regulatory landscape of state-owned enterprises. It will be accessible on IFC’s website both in English and Bahasa Indonesia, and is expected to help all listed companies and reach out to more than 10,000 people in the next few years.
“The roadmap is a major milestone that will strengthen corporate governance practices among publicly listed companies and new issuers,” said Sérgio Pimenta, IFC Director for East Asia Pacific. “It will help raise the accountability of boards and management, deepen the domestic capital markets, and make Indonesian listed companies more competitive and attractive to investors as the country works toward closer economic integration among ASEAN countries in 2015.”
IFC set up a Corporate Governance Program in Indonesia in 2012 to promote transparency and accountability in listed companies. The corporate governance roadmap and manual are the results of a cooperation agreement between IFC and the Financial Services Authority signed in June 2013.
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