"In today?s business environment, good corporate governance improves a company?s reputation by putting in place processes that ensure fair, responsible, transparent, and accountable corporate behavior," IFC?s Country Manager for Indonesia, Malaysia, and Timor-Leste Azam Khan said in a statement here on Tuesday.
Companies that insist on the highest standards of governance reduce risks and enjoy better access to capital, which helps them survive and thrive, he stated.
He noted that as companies move beyond box-ticking and aim to raise corporate governance standards to attract more capital and enhance reputation, they often lack enough in-house expertise and knowledge to design and implement corporate governance improvement plans.
Publications such as the Indonesia Corporate Governance Manual should be an indispensable resource for corporate secretaries, lawyers, and other staff who advise companies and the Board of Commissioners on implementing corporate governance improvements as well as aligning with international best practices.
While Indonesia has implemented a series of initiatives to strengthen its corporate governance regime, and the business community?s awareness on the importance of corporate governance has risen dramatically, there is still a great need for improvement, according to the 2nd Edition of the Indonesia Corporate Governance Manual.
Developed in collaboration with Otoritas Jasa Keuangan (OJK), the latest Corporate Governance Manual aims to help Indonesian companies improve corporate governance practices by highlighting case studies and share best practices to enhance performance and boost access to finance.
It also lays out key corporate governance regulatory changes for listed companies in recent years.
IFC?s Indonesia corporate governance work is implemented in partnership with the Swiss State Secretariat for Economic Affairs (SECO). The goal is to improve financial performance and operational efficiency by promoting better corporate governance practices among companies in Indonesia.
The project aims to strengthen the corporate governance regulatory regime, conduct training and awareness activities, and provide firm-specific services to the market.