Good Corporate Governance for Public Companies

The Financial Services Authority (Otoritas Jasa Keuangan–“OJK”) has issued Circular Letter No. 32/SEOJK.04/2015 on Guidelines for the Corporate Governance for Public Companies(“Circular Letter”).The Circular Letter sets out provisions relating to aspects, principles, and recommendations for the implementation of good corporate governance measures by public companies, and this has been officially mandated through OJK Regulation No. 21/POJK.04/2015 on Guidelines for Corporate Governance for Public Companies.The Circular Letter is of relevance to all parties currently involved in, or intending to involve themselves in, the business activities of any public companies.Guidelines for Corporate GovernanceThe guidelines under which public companies are required to implement good corporate governance measures(“Guidelines”) have been set out by the OJK in a Circular Letter in accordance with international standards of practice, but have not been further regulated through the capital-market sector. [1] These Guidelines are to be implemented across five different areas (aspects), and consist of a number of principles and recommendations, as detailed below: [2]