GOOD CORPORATE GOVERNANCE (GCG) AND WORLD CLASS

MANAGEMENT
Sumber: www.jakartaconsulting.com
The question that frequently arises is how to guarantee the executive
management can be directed to the achieving goal as well as to ensure
the satisfaction of stakesholders interests. The national reformation
has opened our eyes that many aspects of governing corporate were
non-transparent, which created many serious problems and suffered
many corporate stakeholders, moreover put a burden to many others.
Therefore, THE JAKARTA CONSULTING GROUP shifts its attention to the
Corporate Governance aspect in order to establish a management
system with a world class quality. In a globalized era, corporations in
the developing countries, including Indonesia, must stand equal with
other corporations in the world, and be productive and constructive by
interacting and taking part in the Good Corporate Governance.
The corporate governance shifts attention to mainly improving the
corporate performance through supervising the management
performance as well as ensuring the management accountability to the
shareholders and the stakeholders. The Good Corporate Governance is
vital because it motivates the management to improve its
effectiveness as well as to control the management behavior to gratify
the interest of the stakeholders, within a synergize framework.

Generally, The Corporate Governance covers four key points (according

to the concept of OECD): fairness, transparency, accountability and
responsibility. Corporate leaders must be able to show justice and
share profits with the shareholders. Thus, transparency of information
to the shareholders and the stakeholders on many policies, on whose
responsible for those policies and how responsible they are is
necessary. The JCG observes that the executives require enough
delegation of authority to make a successful business.
Therefore, it is essential to develop a mechanism that can control the
corporate effectively, as well as to preserve the interests of the
shareholders and the stakeholders well.
MEDIUM FOR CORPORATE GOVERNANCE

Corporate Governance is a process and a structure of many activities

to ensure that the corporate operates accordingly to stakesholders
wishes. Furthermore, many mediums used to guarantee corporate
achievement as well as to preserve the stakeholders interests are as
follows:
Generally, Corporate Governance focuses on problems in the
accountability. However, several aspects that promote corporate
achievement must be checked during the implementation. It is
important the goal of the enterprise remains compatible with the goal
of the accountability.
Several mechanisms that can be developed are the Executive
Remuneration, the Audit Committees, the Internal Controls, and the
Shareholders especially the Institutional Investors.
During the implementation, THE JAKARTA CONSULTING GROUP also
knows the importance of the executive management to have enough
delegated authority to be flexible in developing careers. Thus a cultural
condition and the level of development in one condusive corporate are
also required during the implementation.
WITH GOOD CORPORATE GOVERNANCE TO A WORLD CLASS COMPANY
Good Corporate Governance is critical in improving professionalism,
accountability and corporate performance to be equal with the best
companies in the world, and to improve endurance and
competitiveness. The resistance stemming from the internal working
culture, the quality of the human resource as well the non-condusive
societal culture to develop Good Corporate Governance principles can
disappear through continuous improvements.
The final message is, to make Good Corporate Governance works,
namely to make Corporate Directors behaving in the interest of the
Stakeholders/Shareholders, we still have to give themauthority to
develop the organization while treating them with all due respect