PT Pupuk Kalimantan Timur (Pupuk Kaltim) has further emphasized its position as a global competitive company in Southeast Asia, with the nominations for the ASEAN GRC Award and the Public Initiatives Award, at the ASEAN Risk Awards 2025. The award was held by the Enterprise Risk Management Academy (ERMA), which was attended by companies from various ASEAN countries with superior track records in governance, risk management and compliance.
President Director of Pupuk Kaltim, Budi Wahju Soesilo, said that the entry of Pupuk Kaltim in the two categories is proof of the company's commitment to Governance, Risk and Compliance (GRC), as well as a sustainable social and environmental responsibility as part of the integral of corporate identity and culture.
In the ASEAN GRC Award category, Pupuk Kaltim is considered successful in integrating governance, risks and compliance to all business processes systematically and thoroughly. So that it is able to break down organizational silos, as well as create integrity-based decision-making and collaboration. Meanwhile, the Public Initiatives Award category, looks at the company's contribution to improving the quality of life of the community, through innovative programs that not only have socio-economic impacts, but are also accompanied by a responsible and sustainable risk management approach.
"The integration of GRC Pupuk Kaltim is not a temporary project, but a unified value that is internalized in the Company's operations. The principle of governance that we follow is FARIF (Transparan, Accountable, Responsive, Independent and Fair), becoming the foundation that directs all steps from strategic policies to the execution process in the field," said Soesilo, quoted Monday, June 23.
According to Soesilo, since 2024 Pupuk Kaltim has taken a major step through the establishment of the Risk Management Directorate and the Risk Monitoring Committee (KPR), which also concurrently serves as the Integrated Governance Committee (KTKT). This structure was formed not only to strengthen supervision and strategic decision-making, but also to ensure that the integration of the GRC takes place effectively, adaptively and synergically throughout the organizational line.
This step is taken in response to the dynamics of regulations and increasingly complex market demands. Through KPR/KTKT, Pupuk Kaltim has a collaborative platform that collects various perspectives, so that every GRC decision is not only legal and obedient, but also strategic and long-term value-oriented.
Pupuk Kaltim pun menerapkan Three Lines Model serta Model Manajemen Risiko Terintegrasi (MRT), yang secara efektif mampu menghilangkan fragmentasi kebijakan dan pelaksanaan GRC di seluruh entitas kelompok, lanjut Soesilo.
Pupuk Kaltim juga mengembangkan inisiatif digital dalam mendukung sistem GRC yang transparan dan adaptif, dan telah menjadi tulang tungkang pengelolaan risiko berbasis teknologi. Sekaligus memfasilitasi pengambilan keputusan berbasis data yang memungkinkan pelaporan dini, evaluasi terukur dan integrasi lintas fungsi secara realtime.
"Our GRC digital ecosystem builds as a central nervous system that brings together all important information, so that every function in the organization can work in a coordinated and transparent manner," said Soesilo.
In addition, Pupuk Kaltim also conducts routine evaluations of the entire GRC system and policy through the PDCA (Plan-Do-Check-Action) approach, which not only functions as a quality controller, but also a sustainable transformation tool that ensures the company is always one step ahead in controlling risk.
The results of this approach can be seen from the significant increase in the Corporate Governance Perception Index (CGPI) score with the predicate 'Most Trusted', and the highest Risk Maturity Index (RMI) in Pupuk Indonesia Group. Including reaching 100 percent compliance in LHKPN reporting, maintaining ISO 37001 certification, ISO 22301, and winning the 2024 IRCA award for the superiority of governance practices.
Strong GRC culture cannot be formed only with policies on paper. There must be a process of learning, understanding and understanding at every level of organization. That's why Pupuk Kaltim adopts a humanistic and participatory approach, so that all company personnel feel they have integrity and compliance," said Soesilo.
Not only limited to internal space, the commitment to GRC is also expanded to the public realm through the Social and Environmental Responsibility (TJSL) program which is designed with the principle of sustainability. One of the flagship programs that has become the main focus of the ASEAN Risk Awards is the Marine Park Conservation and Karang Reef Media Facilities (KILAU SAMUDERA), a marine conservation initiative that began in 2009 in the Bontang waters.
Through this program, Pupuk Kaltim educates fishermen regarding the importance of maintaining marine ecosystems, especially coral reefs, as well as providing direct training in producing and maintaining reef media. This conservation program is carried out through a technological and sustainability approach, through empowerment schemes to provide added value in the community.
Even for raw materials for coral reef media, Pupuk Kaltim utilizes Fly Ash Bottom Ash (FABA) waste produced from the company's production process. This sees FABA production reaching 35,000 tons per year, so the potential for waste of costs reaches IDR 21 billion. This initiative opens up great opportunities to manage waste productively while contributing to environmental conservation.
The innovation has obtained a Patent Certificate from the Ministry of Law and Human Rights, as well as a use permit from the One Stop Integrated Licensing and Investment Office (DPM-PTSP) of East Kalimantan Province. This practice is considered as a tangible manifestation of the environmental risk management approach that is responsible, as well as the form of efficiency and optimization of company resources.
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Given the biggest challenge in public programs is to ensure long-term sustainability, Pupuk Kaltim does not only run the program once, but applies a continuous monitoring and evaluation system to ensure that each initiative really has a consistent and measurable impact.
"We don't want social programs to just stop at the ceremony. There must be continuous learning and increased value. For this reason, Pupuk Kaltim ensures that all initiatives are integrated into the company's risk management system," said Soesilo.
Of all these achievements, Pupuk Kaltim welcomed the nominations for the ASEAN GRC Award and the 2025 Public Initiatives Award with optimism. Not only as a means of recognition, but also motivation to continue to strengthen the strategic role of GRC and the public's contribution to achieving a sustainable future.
"We will continue to increase efforts to make GRC a driving force for the company towards a future that has more integrity, is competitive and sustainable," concluded Soesilo.
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