This printed article is located at http://investor.wika.co.id/report_of_the_board_of_commissioners.html
First and foremost, we would like to express our gratitude to the Almighty God since we are able to performed the mandated duties and responsibilities as the Board of Commissioners of PT Wijaya Karya (Persero), hereinafter refer to WIKA.
On behalf of the Board of Commissioners, allow us to submit accountability reports on the supervisory duties implementation to the WIKA’s Board of Directors in performing business activities throughout 2016.
Global economy in 2016 showed an improvement though not yet fully recovered, indicated amongst others by the fluctuation of world oil and other several commodities prices which indirectly affects the global economy.
Indonesia economic growth in 2016 also showed an improvement and uptrend profile. The Government of Indonesia’s commitment to continue infrastructure development program is a challenge and an opportunity for WIKA to achieve it
The Board of Commissioners (BOC) provides an appreciation to WIKA’s Board of Directors, which has performed well in 2016. The BOC assessed that Directors and all management have managed WIKS by increasing asset growth, mitigating the risks to face dynamic business environment and exploring the potential and optimizing various business opportunities.
From financial perspective, BOC saw that the improving prole of income attributable to parent entity owner of Rp1,009.73 trillion or higher than 2015’s position at Rp625.04 billion and represented 134.56% of RKAP target in 2016 standing at Rp750.42 billion. Furthermore, looking at nancial position performance, WIKA’s assets accelerated to Rp31.30 trillion, growing at 59.69% or equivalent with Rp11,70 trillion compared to Rp19.60 of assets in 2015. Meanwhile, Equity was recorded at Rp12.50 trillion, up by Rp7.07 trillion or 129.97% versus Rp5.44 trillion of equity in 2015. Similarly, this equity realization represented 116.27% of RKAP target 2016 amounted to Rp6.50 trillion.
BOC also perceived that the Board of Directors has been able to enhance the Human Resources (HR) competence to produce professional, reliable, and high integrity HR. It is processed through well-planned training program, internalization and WIKA’s culture socialization, including competency-based HR management to be ready for future challenge.
BOC opines that the Board of Directors needs to continue pursuing strategies and programmes encouraging the Company’s asset optimalization enable to boost future sales and its performance.
BOC notices and observes that the business prospects and business strategy prepared by the Board of Directors (BOD) is able to address challenges and seize opportunities to grow. Infrastructure work opportunities and other business sectors utilization can be maximized. Therefore, BOD should set up strategies to ensure this achievement can be implemented in 2017 and the years to come.
However, the BOC believes that the business strategies assigned by BOD considers all risks, strengthen the financial condition, continues efforts to optimize assets, improves business processes, increases eficiency in all business lines, and commits to maintain health and safety.
GCG implementation is a very important aspect for WIKA to achieve the goals of sustainable businesses and provide an optimal contribution to the stakeholders. Henceforth, WIKA has a strong commitment to implementi corporate governance principles in the daily company management. All the strategic decisions made by the BOC always consider GCG principles: Transparency, Accountability, Responsibility, independency and Fairness in the interest of shareholders and other stakeholders.
WIKA has owned a GCG implementation roadmap, and the Company’s organs, including the BOC committed to support every stage of the GCG roadmap implementation.
As an organ of the Company functioning to supervise and provide advice, BOC has a suficient diversity of composition. In terms of number, the BOC composition currently consists of six (6) people, of which two (2) of whom are Independent Commissioners.
BOC is supported by the Company’s organs responsible to him namely the Audit Committee, Nomination Committee, Remuneration and Good Corporate Governance (GCG), and the Secretary of the Board of Commissioners to carry out monitoring and providing advice tasks to the BOD. BOC views that overall supporting organs have performed well. With the support from the two committees, the BOC continues to encourage GCG best practices standards can be applied to all aspects of WIKA ‘s operations.
During 2016 there was a change in the WIKA’s BOC composition, with its BOC composition of per 31 December 2016 as follows:
|1||President Commissioner||Mudjiadi||AGMS Desicion dated on April 22, 2015|
|2||Commissioner||Eddy Kristanto||AGMS Desicion dated on April 28, 2016|
|3||Commissioner||Liliek Mayasari||EGMS Desicion dated on Juli 30, 2015|
|4||Commissioner||Freddy R. Saragih||EGMS Desicion dated on Juli 30, 2015|
|5||Independent Commissioner||Imas Aan Ubudiah||AGMS Desicion dated on April 22, 2015|
|6||Independent Commissioner||Nurrachman||AGMS Desicion dated on April 22, 2015|
On behalf of the BOC, I express our appreciation and thanks to the Shareholders, the BOD, regulators, customers, employees, Business Partners, as well as all other stakeholders for their trust and support given to WIKA so as to increase the various resources for sustainable growth.
Jakarta, February 22, 2017
PT Wijaya Karya (Persero) Tbk.
On behalf of the Board of Commissioners,