Corporate Governance and Compliance Key to Indonesia’s Capital Market Development
A Conducive Investment Climate through Good Corporate Governance
The development of Indonesia’s capital markets is heavily reliant on the quality of corporate governance practices and standards. A conducive and attractive investment climate can only be achieved through good corporate governance, making companies more transparent and thus more appealing to potential investors.
Good corporate governance also provides companies with stronger boards and control environments, ultimately leading to improved performance. In Indonesia, efforts are being made to improve this area through the development of specific guidelines and regulations.
The Indonesia Corporate Governance Manual
Enhancing Understanding of Good Corporate Governance
The Corporate Governance Manual is a learning tool designed for Indonesian companies at different stages of development. It aims to enhance understanding of the value and benefits of good corporate governance, providing an overview of how companies can improve their practices.
- Provides guidance on internationally recognized best practices
- Bridges between international standards and local laws, codes, and regulations
- Offers updated information and guidance for Indonesian companies
A new edition of the Manual was published in June 2018, offering enhanced content and support for Indonesian companies seeking to improve their corporate governance practices.
The Indonesia Corporate Governance Roadmap
Strengthening Corporate Governance Regulation in Indonesia
The Corporate Governance Roadmap is a publication by the Otoritas Jasa Keuangan (OJK) Corporate Governance Task Force. It aims to strengthen corporate governance regulation in Indonesia for listed companies and new issuers, with objectives including:
- Strengthening supervising roles of company boards
- Increasing disclosure quality
- Enhancing transparency
- Protecting shareholders’ and stakeholders’ rights