Transcript 3. Shanti L. Poesposoetjipto – Komisaris Utama PT

Board of Commissioner Role & Challenge
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ASEAN Potential
•
ASEAN with close to 616 million population
account for 6% of total world trade and third
largest destination for the US FDI
•
ASEAN GDP has grown by nearly 170% over the
last decade
•
ASEAN aggregate economic size of USD2.3
trillion with estimated GDP per capita of
USD3,745
•
Combined economic output reaching $ 2.4 trillion
by end of 2013, to be the fifth largest economy
by 2020, ahead of Germany and just behind
India.
•
500 Million Working age, with Middle class and
affluent individuals to surge from 165 million to
277 million by 2020
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AEC Will Transform ASEAN Into
Single Market &
Production Base
A Region of Equitable
Economic Development
A Highly Competitive
Economic Region
A Regional Fully
Integrated with Global
Economy
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AEC Progress
AEC is not
merely
integrating
ASEAN Trade
only but will
also Integrating
Indonesia with
China, Korea,
India, Australia
and New
Zealand
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Single Market & Production Base
• Company with Global & Regional Network will be benefited from the
start due to increase flow in goods, material, capital & labor.
• Skilled-Educated Worker from lower-waged country will be high on
demand: Brain Drain Risk.
• Tighter margin due to increased
REGIONAL COMPETITION
• Marginalization of unskilled
workers in higher wage
countries
• Risk of over-exuberant inflows of
capital (High Inflation, Bubblerisk & Banking stress)
Confidential & proprietary of PT. Samudera Indonesia Tbk
AEC 2015: Are We Ready
ASEAN Economic Community 2015
Single Market & Production
basis
Competitive Economic
Region
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•
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Free Flow of Goods
Free Flow of Service
Free Flow of
Investment
Free Flow of Capital
Free Flow of Skilled
Labor
•
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•
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Competition
policy
Consumer
protection
Intellectual
property rights
Infrastructure
development
Taxation
E-commerce
Equitable economic
development
• SME development
• Initiative for ASEAN
integration (IAI).
Integration into Global
Economy
•
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China ASEAN FTA
Korea ASEAN FTA
Au-NZ ASEAN FTA
India ASEAN FTA
Tariff will be eliminated and non-tariff barrier will be phased out, Rules and Regulation will be simplified and harmonized,
ASEAN Investors will be permitted to invest in sectors formally closed to foreigners and the service sector will be opened up.
What should Indonesian Company prepare for AEC ?
Confidential & proprietary of PT. Samudera Indonesia Tbk
Indonesia Competitiveness
•
Indonesia Jump’s up from 50
(2012-2013) to 38 position
in 2013-2014.
•
Despite superiority over
Thailand on Basic &
Innovation and
Sophistication criteria,
Indonesia falls on efficiency
criteria: A High Impact
improvement potential
•
Being a low-wage Country,
Indonesia’s Competitiveness
Index might be negatively
affected by the AEC’s “Freeflow of skilled labor” in the
Ability to attract and retain
talent point.
World Economic Forum, Global Competitiveness Index 2013-2014
Confidential & proprietary of PT. Samudera Indonesia Tbk
Preparing for AEC
While the AEC Impact will varies between
industry and company, the Board of
Commissioners responsibilities are to
oversee and provide advice to Board of
Directors:
It is board of commissioner role and
duties to give advice and oversee so that
the Company’s Business Continuity Plan
covers the Business Risk and
Opportunities from coming AEC
implementation.
Confidential & proprietary of PT. Samudera Indonesia Tbk
GCG impact towards the AEC
With the Free Flow of Capital, importance of good Corporate Governance on firm
performance and access to finance are :
Improved Risk Management
Companies with superior governance had much lower
risk profiles (Brown, 2004)
Higher Firm Valuation & Share Performance
Investors willing to pay premium up to 40% for well
governed companies (McKinsey, 2001)
Board of Commissioner
Audit Committee
Nomination &
Remuneration
Committee
Better Access to Capital
Strong correlation between good governance and
lower capital costs (Dyck & Zingales, 2004)
Risk Management
Committee
Board of Commissioner plays important active roles in
Good Corporate Governance Activity
GCG Committee
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Challanges
• Low awareness level and socialization of the coming AEC
• Great attention from the government still required in
socialization of AEC to expedite the readiness of AEC
implementation in Dec 31, 2015.
• Number of efforts had to be done to a company in the
alignment process (ie. New Regulation, Standardization &
Certification).
Confidential & proprietary of PT. Samudera Indonesia Tbk
To Do List
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Procedures for the nomination and remuneration of the members of the
BOC and BOD. [Dec. 2014]
Qualifications of candidates for the BOC and BOD. [Dec. 2014]
Orientation program for new members of the BOC and BOD. [June 2015]
Knowledge and understanding of fiduciary duties of the boards. [June
2015]
Meetings of BOC and BOD. [Dec. 2014]
Concurrent positions by members of BOC and BOD. [Dec. 2014]
Limitation to the tenure of independent commissioners. [Dec. 2014]
Board manual and charters for BOC and BOD. [Dec. 2014]
Diversity on the composition of BOC and BOD. [June 2015]
Performance evaluation of the BOC and its members. [Dec. 2014]
Involvement in financial fraud/crime. [June 2015]
Succession planning of members of the BOD. [June 2015]
BOC’s Nomination and Remuneration Committee. [June 2015]
Performance evaluation of the BOC’s committees. [June 2015]
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THANK YOU