In November 2015, the Financial Services Authority issued regulation POJK No. 21/POJK.04/2015 that mandates public companies to ‘comply or explain’ with the new Corporate Governance Guideline for Public Companies – “OJK-CG Guideline”.
The ‘comply or explain’ approach allows public companies to either comply with the provisions in the OJK-CG Guideline, or provide explanation in the case of non-compliance. All public companies are also obligated to publicly disclose their adherence or explain reasons for non-compliance beginning in their 31 December 2016 Annual Reports.
This brochure summarizes OJK recommendations, compares them to the Indonesia’ Code of Good Corporate Governance and identifies key actions that companies should take to ensure compliance and improve their corporate governance practices.
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