Policies and Implementation

Trust is the key word for any financial services company. Adira Finance is accordingly continuously and consistently applying high standards in the implementation of corporate governance. Implementation standards of Good Corporate Governance (GCG) are improved to match current conditions and by conducting periodic evaluations to get an objective picture on Adira Finance’s GCG implementation. All managers and employees are required to uphold the Code of Ethics and GCG principles in carrying out daily activities.
In applying GCG principles, Adira Finance adopts standards that are applicable nationally and internationally. For national standards, Adira Finance uses the Good Corporate Governance Guidelines issued by the National Committee on Governance in 2006 and the GCG standards of Bank Indonesia (BI) which can’t fully applied to finance companies as contained in BI Regulation No. 8/14/PBI/2006. For international standards, Adira Finance refers to the ASEAN Corporate Governance Scorecard published by the ASEAN Capital Markets Forum.
GCG principles are practical guidelines and references for all departments in all levels of the Company that are implemented through the following:

  • Establishing strategic objectives and a set of corporate values that are communicated and implemented across the Company’s organization;
  • Establishing clear responsibility and accountability boundaries to the organs of the Company;
  • Establishing guidelines for the application of ethical standards, values, goals, strategy and oversight;
  • Providing a strong guidance for internal control systems, including internal and external audit functions, risk management and compliance functions independent from business units, and application of suitable checks and balances mechanisms;
  • Providing specific oversight guidance on risks of conflict of interest, including business relationships with affiliates, shareholders, Commissioners, Directors and senior officers.

The purposes of GCG implementation are as follows:

  • To optimize the Company’s values to all officers and employees by increasing transparency, accountability, responsibility, independence and equality as well as fairness, to achieve better competition at the national and international levels through the creation of a conducive environment for investment;
  • To improve management professionalism, transparency and efficiency and thus strengthen all functions, and enhance impartiality of the Board of Commissioners, Board of Directors and General Meeting of Shareholders, thus improving Company performance;
  • To encourage the shareholders, Commissioners and Directors, in decision making and action, to implement high moral values and compliance to all statutory regulations and awareness on corporate social responsibilities towards its stakeholders.
  • Thus far, the Company has made GCG implementation a performance indicator, striving to embed within all employees implementation of the Code of Ethics and Good Corporate Governance principles as the Company’s values and culture.
  • To create satisfaction for all stakeholders.

In 2013, efforts to improve GCG implementation, among other means, were performed by refining various guidelines, standard operating procedures and systems, conducting human resource development, improving the quality of internal control and risk management systems, conducting continuous socialization to employees and business partners, and conducting intensive communication between leaders, employees, business partners and other stakeholders.

With these measures to improve GCG implementation, the trust of the public continues to be maintained, as characterized by the increasing number of Adira Finance consumers, at nearly 4 (four) million people. Trust of the banking sector both nationally and internationally is characterized by the provision of financing for working capital, with an amount which keeps increasing in line with the increase of the Company’s business performance. Similarly, investor’s trust is shown by the large capital injections with each issuance of the Company’s bonds and sukuk.

To be able to implement GCG principles, the Company recognizes the importance of corporate governance guidelines to be applied to all stakeholders and continuously adjusts guidelines to the latest GCG developments. The Good Corporate Governance Guidelines were ratified in 2007 and have been revised several times, most recently in 2012. The Good Corporate Governance Guidelines of Adira Finance were established by considering the corporate governance guidelines issued by the National Governance Policy Committee in 2006, legislation on limited companies, legislation in the finance company sector, legislation in the capital market sector and other laws and regulations relevant to the Company’s business of the Company as well as by adopting the Company’s values, namely ADIRA TOP.

The Company has long realized the importance of GCG in Company’s development. Therefore since 2004, the Company has implemented the code of ethics that should be obeyed by all employees, called “ADIRA TOP”. This code of ethics should be read, understood, and signed by all employees of the Company.

The basic principles of ADIRA TOP are as follows:

  1. Advance

All management and employees in their behaviour, in carrying out their activities and in their thoughts must have the “one step ahead” mentality (capable of thinking and moving one step ahead as well as faster than other people in general, or competitors); visionary (always maintain a forward, clear and directed vision as a guide to move ahead); execution ability (competence in making quick and accurate decisions in all situations in order to minimize and eliminate any adverse side effects).

  1. Discipline

All management and employees in carrying out their responsibility must be able to implement a constant attitude of “Plan, Do, Check and Action (PDCA) to improvement” (leads to something better through the process of planning, acting, monitoring and continuous improvement), followed by an excellent way of thinking and attitude as well as disciplined behaviour in accordance with the norm of the organization.

  1. Integrity

Every member of the Management and employees must have the attitude that is always steadfast to commitment followed by attitudes, which are consistent, trustworthy (honest and sincere), having a high sense of belonging and able to maintain business ethics, therefore able to become a role model for the other employees.

  1. Reliable

Every member of the management and employees must be able to reflect a winner’s mentality, which is reflected in a positive and smart way of thinking as well as supported by a sense of full responsibility on their actions.

  1. Accountable

All performed actions must be based on factual data and performed through the principles of openness which is objective and wise.

  1. Teamwork

Setiap anggota Manajemen dan karyawan harus memiliki keinginan untuk memperoleh hasil yang optimal secara bersama-sama, yang dilandasi oleh keinginan berkorban, tidak saling menyalahkan satu sama lain dan berupaya mencari solusi yang dilakukan dengan sinergi yang baik.Every member of the Management and employees must have the will to obtain optimum results collectively, based on willingness to sacrifice, not blaming each other and making efforts of solution finding through good synergy.

  1. Obsessed

Every member of the Management and employees must work with the right process and oriented to an optimal result, highly motivated by being willing to do extra work and being proactive, always attempt to improve skills as well as by looking after each other.

  1. Professional

Every member of the Management and employees must have the mentality which reflects the entrepreneurial spirit, namely being able to determine risk, be innovative and creative, as well as possessing a reliable leadership skill and consumer oriented.

ADIRA TOP requires every member of the management and employees of the Company to always obey the prevailing laws in running its business, either it is national laws, central government laws, local government laws and/or tribal laws that prevail in the area where the Company carries out its business. ADIRA TOP also regulates the responsibilities of the Management and employees of the Company.

The Company gives an opportunity to every employee to pronounce the report about anything possible which is a fraud of culture and ethic code of the Company (whistle blower), right to each of Manager, Internal Audit, Human Resources, Legal, Corporate Secretary or even more higher management. ADIRA TOP is also control the mechanism where its a must thing for the entry report.