About Us

GCG STRUCTURE

In order to improve the quality of GCG implementation, the Company has equipped the necessary governance infrastructure and constantly reviews and improves the GCG soft structure. The soft structure consists of policies and GCG implementation guidelines structured to ascertain the quality improvement of GCG implementation in company management. The soft structure policy framework includes the Board Manual, GCG Guidelines, Company Ethics Guidelines, Committee Board Guidelines/Charter for the Supporting Committee and other Guidelines.

There is a close relationship between the work units managing GCG in the company, namely Department of Communication & Law which functions as the Corporate Secretary that is in charge of Board Governance (communication and coordination functions with the Board of Directors, Board of Commissioners and Board of Commissioners Committee), Legal & GRC Unit (operational governance function, policy formulation and compliance), the Corporate Social Responsibility (CSR) Unit, and Internal Audit.

IMPLEMENTATION

Since 2019, the Company (PT Semen Gresik), a subsidiary of PT Semen Indonesia (Persero) Tbk, has consistently assessed the GCG implementation (GCG Assessment) to determine its level of sufficiency in the Company, which is performed by Independent Assessors. In addition, the GCG assessment also aims to discover the advantages and disadvantages of the current GCG implementation with the Company following up on the recommendations and suggestions from the assessment results for improvement. The GCG assessment refers to the Decree of the Secretary of the Ministry of SOEs Number SK-16/S.MBU/2012 concerning Indicators/Parameters for Assessment and Evaluation of Good Corporate Governance Implementation in SOEs, and the Company's personnel cooperates and supports its implementation. The Company's GCG implementation is increasingly massive, where the GCG score has increased significantly each year with the following details:

YEAR	GCG Score Achievement	Asessor
2019	79,91	PT Sinergi Daya Prima
2020	87,56	Self-Assessment (reviewed by: Finance and Development Supervisory Agency or BPKP of Central Java Province)
2021	92,69	PT Sinergi Daya Prima

In addition to being published on the Company's website, the results of the GCG assessment have also been included in the Company's Annual Report. The Board of Directors and Board of Commissioners have also reported the Company's GCG implementation progress to the Shareholders at the Annual GMS.

Through high commitment and consistency in the implementation of GCG, the Company believes it can prevent the occurrence of Corruption, Collusion and Nepotism (KKN) practices and improve the supervisory function in the management of the Company. Consistency in GCG implementation also enhances business performance and sustainable growth, which in turn will increase corporate value for shareholders and other stakeholders. Management's commitment to compliance with GCG consists of several policies and related provisions including:

1. The Board of Directors and the Board of Commissioners have initiated the signing of the Statement of Ethical Compliance, Statement of Conflict of Interest and Statement of Share Ownership of the Company to comply with the provisions required in the Company's Ethical Guidelines. Statement of Ethics Compliance Letter signed by all employees. The compliance of all levels of the Company with the Code of Ethics which regulates the procedures and ethics of doing business and interacting with internal and external parties is a form of commitment of all elements of the company to implement GCG principles.
2. KPIs related to GCG involve the GCG index value, Risk Maturity Level assessment, production operational compliance (Environment PROPER, SNI Audit, Financial Report Audit, customer satisfaction survey, employee satisfaction survey, etc.).
3. An adequate annual budget allocation for the implementation of GCG, including programs to increase the competence of the parties involved in implementing GCG (Directors, Board of Commissioners, Committees of the Board of Commissioners, assurance function, risk management, compliance, quality control, internal audit and Business process owners) and the development of technology systems related to the implementation of GCG.
4. Managing the company's internal control, achieving targets, designing policies, procedures and disclosure controls, documenting, and reporting.

The Company has committed to implementing gratuity control to support efforts to eradicate corruption in the company through an Anti-Bribery Policy signed by the Board of Directors and Board of Commissioners. The Company has prepared a gratification control procedure and Whistle blowing System (WBS) as a guideline of the good corporate governance of receiving, giving, rejecting, and reporting gratification within the Company’s environment.

Various programs have been done to nurture the culture against gratification and corruption within the Company’s environment by campaigning about gratification control, which is one of the materials in the GCG internalization activity, printing banner on gratification control procedures and whistle blowing system (WBS), as well as other campaigns done through the internet; the Company’s social media accounts and national printed media.

• Board of Commissioners, Manager, Supporting Organ of Board of Commissioners and all employees of Semen Gresik “(Insan Semen Gresik)” are FORBIDDEN to receive gratification (any form of rewards), directly or indirectly from the Company’s stakeholders, including, but not limited to public holidays and other holidays.
• If there are some parties recognizing the practice of request/receipt of gratification from Insan Semen Gresik to and/or from the stakeholders on behalf of individuals or the Company, they can be reported to the Company through:

  Email	:	semengresikbersih@sig.id
  Phone	:	(0295) 3202007/9 Ext. 2160/2161
  Post	:	PO BOX 123 Pati 59100
  WhatsApp	:	081132293700

• In conjunction to the case of fraudulence and offering of certain sponsorship/program/activity on behalf of the Company and Management, as well as the fraudulence disguised as employee recruitment, we warn the community to be aware of such kinds of fraudulence. The Company would not collect any fee in every step of employee’s recruitment and would not cooperate with any parties to arrange the accommodation and transportation facilities in the recruitment program.

Whistleblowing System (WBS)

To improve the quality of transparency, accountability, and fairness in the implementation of GCG, PT Semen Gresik (“the Company”) implements a Whistleblowing System (WBS) that can accommodate all concerns, complaints, and reports from internal and external parties.

This mechanism is expected to expand public’s and employees’ participation effectively to be more courageous to act against fraud or corruption by reporting the cases to the Company via:

Email	:	semengresikbersih@sig.id
Phone	:	(0295) 3202007/9 Ext. 2160/2161
Post	:	PO BOX 123 Pati 59100
WhatsApp	:	081132293700

Whistleblowing Organization

The Management is responsible on the application of WBS in the Company, while the Board of Commissioners is responsible on the supervision of the management itself. The Management and Board of Commissioner altogether initiate a WBS organization in the Company which is centralized, including the management of violation reporting in the Company. This organization consists of four major elements, i.e.:

1. Violation Report Management Team or Tim Pengelola Pelaporan Pelanggaran (TP3), in charge of:
   
   • Receiving, registering, and classifying the whistleblowing system based on the reported categories.
   • Implementing the whistleblower protection program following the established policies, including maintaining the confidentiality of whistleblower and reported party (presumption of innocent).
   • Maintaining regular communication with the whistleblower.
   • Submitting information on violation reports to TP3, if the Board of Directors committed the violation, Members of the Board of Commissioners, and Supporting Organs of the Board of Commissioners.
2. Investigation Team, consisting of the Internal Investigation Team, External Investigation Team, and Company Center Investigation Team. The overall duty is to follow up investigation on the principle of the violation which aims to discover and collect vital evidence to ensure the occurrence of the violation.
3. Board of Commissioners is in charge of selecting, confirming (from the aspect of violation types, the suspects, and the complete documents) and verifying, as well as deciding whether the report will be followed up or archived.
4. Management has the main duties as follows:
   
   • Selecting, confirming (from the aspect of violation types, the suspects, and the complete documents) and verifying, as well as deciding whether or not the report will be followed up or archived.
   • Ordering Investigation Team to investigate violation committed by the employees.

Whistleblowing Management

The management of the suspect of violation reporting is done in accordance with the mechanism and criteria determined within the Procedures of Whistleblowing System, which is a mechanism process of violation reporting management suspected to be committed by:

• The Company’s employees.
• The Management, Board of Commissioners’ members (individual) and Supporting Organ of the Board of Commissioners
• The Board Commissioners of Company

The company categorizes the violation into three types with different case managements, namely:

1. Category 1 (Corruption and Economy Corruption Crime), which is:
   
   • Criminal action categorized into corruption both for personal profit or other parties, fraudulence, abuse of power related to management financial fraud, bribery, gratification, and clash of interest done by the members of the Company
   • Violation over principle and accounting process and capital market authority about budgeting report, violation over tax policy and other similar policies, fraudulence or any other crimes causing financial loss of the Company or other parties which is done by the Management and/or the Board of Commissioners
2. Category 2 (Criminal action related to general crime), which is various kinds of criminals, as stated in the Criminal Code and other laws and regulations, including but not limited to robbery, violence on employees or chairmen, extortion, drug abuse, harassment, and other criminal acts including the acts that endanger work safety and health, company security, and community life and the environment by the Company’s personnel.
3. Category 3 (Violations related to Company policies), namely all violations other than corruption and economy crimes, as well as general crimes regulated in the Company's Ethical Guidelines and in various Company policies and provisions/procedures, as well as the Employee’s Discipline Policies committed by the individuals of the Company.

Protection for the Whistleblower

1. The Company guarantees the confidentiality of the whistleblower's identity, except if the disclosure is required regarding a report or investigation conducted by the competent authorities.
2. The Employees who become Whistleblowers and show good faith will be protected from acts of dismissal, demotion, harassment, or discrimination in all forms and adverse records in their data files.
3. The unanimous report submission will still be accepted by the officer authorized to receive the report, but it must be realized that there are difficulties in clarifying. However, the report will still be followed up in accordance with the existing procedures.
4. The Company determines penalty for misuse of WBS and affirms that parties (both internal and external) submitting false or slander reports be given penalty, including legal proceedings and not receiving both confidentiality guarantees and protection for whistleblower.

Semen Gresik Management System (SMSG)

In line with business strategy and the target to be the World Class Company amid the tightening climate change in business competition, agility is required for all layers in the Company in responding and securing business chances as ian effort to improve the Company’s competitiveness. Such a business climate change is affected by some factors, such as the changes on the policies on ownership, company business orientation, competition condition and the increasing demand of the stakeholders. Thus, effective and efficient Company management is required to guarantee:

• The Fulfilment of stakeholders' needs and expectations.
• The Company's speed in responding to the dynamics of business strategy changes
• The Speed on making strategic decisions.
• The ease of Company in transferring knowledge.
• The realization of High Assurance Organization.

In achieving the effective and effcient governance, the Company has implemented an integrated management by referring to the principles of good corporate governance, namely the Semen Gresik Management system or Sistem Manajemen Semen Gresik (SMSG), which includes:

• Quality Management System (ISO 9001),
• Environmental Management System (ISO 14001), ,
• Occupational Health and Safety Management System (SMK3-ISO 45001),
• Risk Management System (ISO 31000), and
• Other Management Systems, as well
• Improvement programs through the application of Innovation Management.

The implementation of the Semen Gresik Management System (SMSG) is expected to be capable of increasing additional value for particular shareholders and for other general Stakeholders.

SMSG Management

Semen Gresik Management System (SMSG) is fundamentally built based on the process of Company business with an integrated basis on ISO 9001 Quality Management System which is expected to be able to build a comprehensive and flexible Management System in responding to the dynamic changes in the Company’s strategy and organization by keep being aligned with the stakeholders' expectations.

The management of Sistem Manajemen Semen Gresik (SMSG), an Integrated Audit is also executed to secure the implementation of the management system running consistently and consequently. To ensure sustainable improvement, the Company also establishes a policy to implement the Innovation Management System (IMS) consistsing of Innovation activities, Quality Control Group activities, 5R Programs (Concise, Neat, Clean, Careful and Diligent), Advice Systems, Total Productive Maintenance. Total Productive Maintenance has now been enhanced by the application of Realibility Centered Maintenance (RCM) and Quality Control Projects to achieve international-class operational management in accordance with the Company's vision.

The role of the Semen Gresik Management System (SMSG) in supporting the functions of the Operating Company:

• adjust all Management System certifications.
• adjust the SMSG documentation system.
• map and compile the Company business processes at the Operating Company.

The performance of the Semen Gresik Management System (SMSG) in 2018 has resulted in the followings:

No	Awards / Certifications	Acquisition Year
1	SMK3 Gold Flag Award based on PP 50 of 2012	2018 & 2022
2	Level 5 Green Industry Award from the Ministry of Industry	2019 - now
3	Level 5 Green Industry Award from the Ministry of Industry	2021 - 2022
4	Green Label Certification	2021 - 2022
5	Product TKDN Certification	2021 - 2022
6	Green Industry Certification	2019
7	ISO 9001:2015 Certification	2017, 2019, 2022
8	ISO 14001:2015 Certification	2019 & 2022
9	ISO 45001:2018 Certification	2018 & 2022
10	ISO 37001:2016 Certification	2021
11	ISO 50001:2018 Certification	2020
12	SPPT SNI certification
13	Registration of Cement Products in the SDMK of the Ministry of PUPR	2021