Strengthening Understanding Of Risk Management And Management, IFG And FH UNSOED Holds Legal And Governance Seminars

JAKARTA - Indonesia Financial Group (IFG), BUMN Holding Insurance, Guarantee, and Investment continue to be committed to supporting strengthening corporate governance and risk management. This commitment is realized through the implementation of the company's Social and Environmental Responsibility (TJSL) mandate, especially legal pillars in strengthening the understanding of risk management, governance and law enforcement among practitioners and students.

With this background, IFG together with members of the holding collaborated with the Faculty of Law (FH) Jenderal Sudirman University (UNSOED) to hold a National Seminar with the topic Optimizing Synergy between the Indonesian Attorney General's Office and the Ministry of SOEs for Law Enforcement Interests in Saving BUMN Assets, in the context of the 43rd Dies Natalis Faculty of Law at Jenderal Sudirman University in Purwokerto, on Thursday 17 May.

Present at the seminar were Expert Staff for Economic, Social and Cultural Affairs of the Indonesian Attorney General's Office Narendra Jatna, Head of the Indonesian Attorney General's Asset Recovery Agency Amir Yanto, Deputy for Law and Legislation of the Ministry of SOEs Robertus Billitea, IFG President Director Hexana Tri Sasongko, HR Director of IFG Rizal Ariansyah, PLH Dean of FH UNSOED Strong Puji Prayitno, and members of the IFG holding board.

Expert Staff for Economic, Social and Cultural Affairs of the Indonesian Attorney General's Office, Narendra Jatna, said that his party understands the concerns of state and state-owned officials in making business decisions that intersect with risks and threats of law violations, especially related to criminal acts of corruption. However, these concerns should not have occurred if state officials and SOEs understood the substance of corruption.

Every decision that results in state losses cannot necessarily be categorized as a criminal act of corruption because the prosecutor also understands that there are business risks that can occur in each of these decisions.

"What distinguishes that action is called corruption and not from intention and understanding. If a state official or BUMN by knowing and wanting to abuse authority, outsmarting the rules, with the intention of benefiting himself or certain groups, these actions have fulfilled criminal acts of corruption," he said.

Narendra added that the substance of preventing corruption is not only to prevent state losses, but more than that is to ensure that business competition takes place fairly and fairly.

"There should be no situation or rules that are deliberately made to benefit certain parties," he said.

Head of the Indonesian Attorney General's Office for Asset Recovery Agency Amir Yanto emphasized that his party was open to various opportunities for cooperation with SOEs in terms of asset recovery. This can be done in three main dimensions, such as for asset tracing, asset confiscation, and asset recovery through an auction mechanism.

In many cases, SOEs and other state institutions do not have the ability to carry out the mandate of recovery of these assets. Even in certain cases, the assets to be restored are no longer of value, have a weighted value greater than the recovery value, or their status is not clean and clear.

"Asset recovery is an effort to return assets to the state as a result of a criminal act of corruption. These assets can also be returned by being managed again by a BUMN. This collaboration is needed so that the recovered assets can be useful again," he said.

On the same occasion, Deputy for Law and Legislation of the Ministry of SOEs Robertus Billitea explained that the current challenge is to maintain SOEs as corporations in achieving optimal performance based on the implementation of risk management and compliance with applicable regulations and laws.

"Currently, SOEs act as agents of development and agents of value creators, and this must be based on the implementation of strong risk management and governance. Not only aimed at driving economic growth, but also to ensure that the BUMN contribution is based on applicable regulations and laws," said Robertus.

Robertus explained that currently the current legal risks are residual risk from other risks such as operational risks or financial risks so that for SOE mitigation it is necessary to implement the Three Lapis Defense (Three Line of Defense). He then also explained about governance framework, both macro and micro, where each unit/organization will have an important role in ensuring the optimal implementation of the Three Lapis Defense (Three Line of Defense).

An example of implementing micro governance framework in BUMN must start from a business unit as a first line that is responsible for identifying, evaluating, and controlling risks in every activity. Meanwhile, the second line is the role of risk management function as an equalizer to the first line which will analyze the risks of first line activities, job framework development, and policy making to control risks.

The third line lies in the role of the internal audit work unit which carries out the final inspection mechanism for the effectiveness of the company's governance and risk control.

"The implementation of the Three Lines of Defense framework needs to be supported by superior human resources to ensure the implementation of risk management runs optimally in SOEs, so that SOEs create quality and healthy performance," concluded Robertus.

IFG President Director Hexana Tri Sasongko said that IFG participation together with holding members is a manifestation of the TJSL program, especially legal pillars and governance in an effort to contribute to the creation of superior and competent human resources that can realize legal implementation, risk management, and regulation.

"We really hope that the national seminar activities related to SOE governance and risk management organized by IFG with FH UNSOED 2024 in the context of Dies Natalis can contribute to the development of legal science and strengthening SOE governance in the midst of the rapid development of the financial industry," added Hexana.

PLH Dean of FH UNSOED Strong Puji Prayitno gave high appreciation to IFG for its support as part of empowering the best legal practice.

"We would like to thank IFG and all holding members for their great commitment to increasing law enforcement competence through good governance for creating an accountable, prudent, and transparent business climate," he said.