Good GCG Implementation is Key to KAI's Sustainability

Every company is committed to conducting all business in an honest, ethical, and professional manner. The implementation of Good Corporate Governance (GCG) within the company is fundamental to achieving performance excellence across every line. This is one of the keys to success to continue growing and remaining profitable in the long term. A good and consistent implementation of GCG is expected to make the company more reliable because, generally, one of the objectives of GCG implementation is to increase public trust, especially from customers.

In conducting its business practices, PT Kereta Api Indonesia (Persero) has a responsibility to apply good governance based on proper business ethics as one of its main foundations. By executing it consistently and sustainably, KAI is able to manage a professional, ethical, and integrity-driven business, including in the midst of a pandemic.

One manifestation of KAI's hard work in implementing good corporate governance is the implementation of the Anti-Bribery Management System (SMAP) within the company's business processes. This effort bore sweet fruit with KAI receiving the ISO 37001:2016 certificate at the Jakarta Railway Center (JRC) Building, Jakarta, on September 24, 2020, after undergoing a certification process in accordance with the implementation of the Anti-Bribery Management System (SMAP) in several work units.

To obtain this SMAP SNI ISO 37001:2016 certification, KAI went through several stages, namely planning, development and implementation, evaluation, and certification. The certification obtained by KAI was issued by the certification body TUV Nord Indonesia for the Quality Assurance & GCG unit and the certification body Sucofindo for the Procurement of Goods and Services unit. This year, to raise awareness about the implementation of good corporate governance, KAI is expanding the scope of its SMAP certification to all directorates and several regional operational areas (Daop), divisional areas (Divre), and workshops (balai yasa).

“This certification is a form of KAI's commitment to addressing all forms of bribery and as a public company that practices good GCG,” said VP Public Relations of KAI, Joni Martinus.

Joni also explained that in implementing this SMAP, KAI has established several anti-bribery policies. Another policy is running SMAP and granting independent authority and responsibility to the anti-bribery compliance function.

“To overcome all forms of bribery and as a company that practices good GCG, there are 4 commitments that must be obeyed by all KAI employees and business partners. First, no bribery, meaning there must be no bribery or extortion. Second, no kickbacks, meaning no accepting commissions or tokens of gratitude in the form of money or other forms. Third, no luxurious hospitality, meaning no excessive entertainment or welcoming events. And fourth, no gifts, meaning no giving of gifts or gratifications that contradict applicable rules and regulations,” said Joni.

KAI also routinely conducts SMAP socializations in internal environments and with stakeholders at least 5 (five) times a month. The socialization is carried out through direct face-to-face meetings as well as online. In addition, socialization is also done by printing banners, sending email blasts, and through the company's internal tabloid.

Not only socialization, but training for bribery prevention and SMAP improvement is also routinely conducted. At least in 2021, training was held twice for employees. Meanwhile, for 2022, training related to SMAP will be executed in the second semester. Education related to SMAP is a joint effort to create a clean environment in accordance with GCG standards.

"One of the aspects of KAI's operational sustainability requires conditions that match GCG principles, namely transparency, accountability, responsibility, independency, and fairness. Support from stakeholders is also a very important matter," said Joni.

Therefore, according to him, the company and stakeholders need to jointly build conditions aligned with GCG principles.

"In essence, KAI strictly prohibits bribery and corruption in any form. Let us implement these principles together. If there are allegations of corruption-related violations, please report them immediately to KAI's whistleblowing system channels via email at [email protected] or via WhatsApp at 081214455300," he concluded.