Supporting Anti-Corruption Efforts, PGN Expands its Anti-Bribery Management System Scope

Jakarta, March 8, 2024 – In supporting the Corruption Eradication Commission's (KPK) efforts to foster anti-corruption practices through the integrity values cultivation among businesses, PT Perusahaan Gas Negara Tbk (PGN) consistently implements the ISO 37001 Anti-Bribery Management System (ABMS) in its business operations.

KPK conducts corruption prevention awareness campaigns through technical guidance sessions for businesses, including PGN, one of the partners committed to spreading anti-corruption values in its business operations and corporate governance. "Corruption prevention and eradication must involve collaboration from all elements of society, including all PGN employees," said the Deputy of Education and Community Participation of KPK, Wawan Wardiana, on Wednesday (6/3/2024).

President Commissioner and Independent Commissioner of PGN, Amien Sunaryadi, stated that PGN continues to provide regular training sessions every year to instill and enhance awareness among all employees regarding anti-corruption behaviors. This effort follows the programs conducted by KPK to guide businesses, including state-owned enterprises (SOE), in preventing actions that could harm the state's finances.

"Not only for PGN employees but anti-corruption policies and procedures are also communicated to all suppliers and business partners. Cooperation with PGN must be accompanied by Integrity Pacts from both parties," Amien said during the Anti-Corruption Business Actors Technical Guidance event in Jakarta.

Another effort undertaken by PGN is the mandatory submission of wealth reports (LHKPN) to KPK as a form of accountability and transparency regarding asset ownership, with a reporting percentage of 100%. PGN also digitizes various strategic company activities such as procurement, payments, and customer billing information to reduce bribery risk. As a concrete step in implementing good corporate governance (GCG), PGN achieved a score of 99.004 in 2022.

PGN also establishes and implements Conflict of Interest Guidelines and Gratuity Control Number P-004/A-11, as the basis for implementing gratuity control to promote business ethics, conflict of interest prevention, and fraud prevention. Gratuity management is overseen by the Gratuity Control Unit Team (UPG), which operates within PGN's Internal Audit function.

"The Internal Audit function also has an Ethics Committee responsible for managing the Whistleblowing System (WBS), a system for reporting suspected deviations within the company. WBS reports can be submitted through the company's website, email, or official letters addressed to the Ethics Committee," Amien added.

At this Anti-Corruption Business Actors Technical Guidance event, Harry Budi Sidharta, Director of Infrastructure & Technology, received the ISO 37001 ABMS Extend Scope Certificate presented by President Director of Lloyd Register Indonesia, Firya Amalia Andriana.

PGN has implemented and been certified for the ISO 37001 ABMS since 2020, initially with a limited scope. In the following years, considering the benefits of ISO 37001 ABMS for the company, PGN's management directed the expansion of certification scope (extend scope) to broader functions while integrating it with ISO 9001 Quality Management System, ISO 45001 Occupational Health and Safety Management System, and ISO 14001 Environmental Management System to enhance time and cost efficiency. Therefore, at the beginning of 2024, following this directive, PGN successfully achieved the Integrated Quality HSSE and Anti-Bribery recertification while expanding the ISO 37001 ABMS certification scope from three functions to six functions deemed to have high bribery risks.

Beni Syarief Hidayat, the Director of Human Resources and Business Support, added, "In addition to the ABMS, certified standards, and process digitalization implementation to mitigate corruption potential at PGN, we also adhere to the 4 NO principles in our work practices, namely No Bribery, No Kickback, No Gift, and No Luxurious. We consistently apply this culture to business ethics and practices as part of our SOE corporation."

Beni also emphasized that PGN, as Pertamina's Gas Sub-holding, will continue to commit to supporting KPK in internalizing integrity values and anti-bribery efforts.

Vice President of Corporate Communication of Pertamina, Fadjar Djoko Santoso, stated that as a state-owned enterprise, Pertamina always prioritizes compliance and transparency based on the principles of Good Corporate Governance (GCG) in its business operations.

"Pertamina, as a state-owned enterprise, is a pioneer in building synergy with the KPK in the framework of cooperation to prevent potential corruption within the company. This is Pertamina's commitment to conducting clean, corruption-free business," said Fadjar.

Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social, and Governance (ESG) implementation across all Pertamina's business lines and operations.**