Semen Baturaja Committed To Support The Ministry Of SOEs Program For Strengthening GCG In Subsidiaries

JAKARTA - PT Semen Baturaja Tbk (SMBR), as a subsidiary of PT Semen Indonesia (Persero) Tbk (SIG), is committed to supporting every effort to increase the company's transparency and accountability in every business activity, following the examination activities of the South Sumatra High Prosecutor's Office as a follow-up to a memorandum of understanding (MoU) between SMBR and the South Sumatra Prosecutor's Office.

The examination activity on Wednesday, April 12, was carried out by the South Sumatra Prosecutor's Office Investigation Team led by the Head of Investigation of Khaidirman SH and the Acting Head of the South Sumatra Attorney General's Office, Adi Mulyawan SH, at the PT Baturaja Multi Usaha (BMU) Office in Palembang. The inspection was carried out following indications of the alleged distribution deviation and management of cement transportation in 2017-2021. PT BMU is a subsidiary of SMBR that supports businesses in the distribution and transportation sectors.

Previously, SMBR had conducted internal inspections of the company and its subsidiaries through the Internal Audit Team, which was then followed by a third party examination, in this case collaborating with Ernst & Young (EY) to conduct a special audit.

From the results of the special audit, it was found that there were indications of irregularities at PT BMU, so SMBR asked the South Sumatra Attorney General's Office to conduct an examination of the allegation. As the parent company, SMBR is also checked for data related to the activities of its subsidiary.

The BASHony Santri VP of Corporate Secretary of SMBR revealed that the examination of the South Sumatra Prosecutor's Office was SMBR's commitment to implementing Good Governance Corporate (GCG) within the company and its subsidiaries, and supporting the cooperation between the Ministry of SOEs of the Republic of Indonesia and the Attorney General's Office which aims to improve the performance of SOEs in serving the community, improving the system in state-owned companies, and improving the condition of SOEs to be more transparent and professional.

"Good corporate compliance and governance has become a commitment and culture within the company and a subsidiary of SMBR, to continue to be improved by carrying out business activities properly and correctly. This is in line with the efforts of the Ministry of SOEs of the Republic of Indonesia to ensure business practices in the BUMN environment in accordance with GCG principles," Basthony said in his statement, quoted on Saturday, April 15.