The establishment of the Audit Committee by the Board of Commissioners was founded upon Law No. 40/2007 on Limited Liability Companies and OJK Regulation No. 55/POJK.04/2015 on the Establishment and Work Guideline for the Audit Committee, as well as the Audit Committee Charter of PT Kresna Graha Investama Tbk.
Vision and Mission
Vision: Supervising the implementation of Good Corporate Governance principles, in line with the values, strategies, and policies of the Company.
Mission: Assisting the Board of Commissioners in exercising their supervisory function, to ensure that the Company’s activities are conducted on the basis of the principles of transparency, accountability, independence, fairness, and are in compliance with prevailing rules and regulations
Duties and Responsibilities
In conducting its supervisory duties and responsibilities, the Audit Committee is bound by the Code of Conduct set out in the Audit Committee Charter. The Audit Committee Charter has been formulated in accordance with OJK Regulations and ratified by a Board of Commissioners’ decree. The Audit Committee shall perform its duties and responsibilities effectively.
The responsibility of the Audit Committee covers the following aspects:
- Internal Control
- Financial Statements
- Internal Audit Unit
- External Audit/Public Accountant
- Prevailing Laws and Regulations
- Corporate Policy
- Code of Ethics
In carrying out its duties and responsibilities, the Audit Committee has the authority to:
1. Request and obtain information from the Directors, Executives, and Employees of the Company.
2. Provide recommendations to the Board of Commissioners regarding the appointment of a Public Accounting Firm based on the considerations of independence, scope, and fee.
3. Request information needed from the Internal Audit and External Auditors.
4. Request special audit whenever necessary.
5. Assign a professional and independent third party considered to be competent in the field to conduct an assessment and submit an opinion in relation to certain issues related to the Company.
6. Access without hindrance all records, employees, funds, assets, and other resources of the Company.
7. In carrying out its responsibilities, the Audit Committee does not directly audit the Company’s business activities.
8. Execute other authorities as granted by the Board of Commissioners.
The Audit Committee consists of at least three persons, with one chairman/member, an independent external party with expertise in finance and accounting, and an independent external party with expertise in law or the capital market. The chairman of the Audit Committee is an Independent Commissioner of the Company. Members of the Audit Committee must adhere to the Company’s Code of Conduct, must possess a sterling reputation and must maintain their independence.
In 2021, the Audit Committee’s composition was changed in line with POJK No. 31/POJK.04/2015 on Disclosure of Information or Material Fact by Issuers or Public Companies. The Audit Committee’s composition, based on a Decree of the Board of Commissioners No. 001/KGI-KOM/II/2021 dated 03 February 2021 thus became:
- Chairman: Surya Susilo
- Member: Flavia Nancy
- Member: Indriani Wirjanto
Members of the Audit Committee are appointed by the Board of Commissioners to serve for a term equivalent to that of the Board of Commissioners. They can be reappointed for a maximum of one more term.
Audit Committee's Independence
Members of the Audit Committee shall not have any business relationships or other affiliations whatsoever with the Company, the Directors or the Commissioners or the Shareholders of the Company; may not concurrently serve as Commissioner, Director, or Executive for any business entities affiliated with the Company; may not have familial relationships to the second degree with the aforementioned parties; may not receive any compensation whatsoever from the Company or its affiliates aside from the remuneration as a member of the Audit Committee; and may not be a member of any institutions or professions that have provided assurance, non-assurance, evaluation, or consulting services to the Company, within six months prior to their appointment.
Audit Committee's Activities
In 2018, the Company’s Audit Committee performed and executed its authority and responsibilities in accordance with Financial Services Authority (OJK) Regulations and the Internal Audit Charter. Activities in 2018 were as follows:
1. Conducted 5 meetings, including meetings with Internal Audit and the Board of Directors.
2. Performed supervision and review on the Company’s operational activities and its financial condition throughout 2018.
3. Reviewed the Company’s financial statements prior to submission to the Financial Services Authority and the Indonesia Stock Exchange.
4. Reviewed the Company’s compliance with prevailing rules and regulations in the capital market, the Company’s regulations, and other relevant regulations.
5. Reviewed the Company’s strategic, business and financial plans and the Good Corporate Governance report.
6. Prepared a periodic report of the Audit Committee’s evaluation on the implementation of audit of the Company’s historical financial information.
7. Provided recommendations to the Board of Commissioners regarding the appointment of a Public Accountant and/or a Public Accounting Firm for the 2018 financial statements.
The Audit Committee is required to hold a meeting at least once every three months. In 2018, the Audit Committee conducted 5 meetings, including with Internal Audit and the Board of Directors. All meetings were attended by all members of the Audit Committee.