Internal Audit

Internal Audit Unit has the duty to ensure good corporate governance through an audit process on the implementation of procedures within the Company, as well as to ensure effective risk management and internal control system in the Company.

Internal Audit Unit is led by Head of Internal Audit Unit who is appointed by and reports directly to President Director. The appointment and dismissal of Head of Internal Audit Unit must be through approval of Board of Commissioners. Appointment, change or dismissal of Head of Internal Audit Division must be reported to Financial Services Authority (OJK) and Indonesia Stock Exchange (BEI).

Based on Board of Commissioners’ Approval Letter No. 001/SP-DEKOM/VII/2019 dated July 30, 2019 concerning Dismissal and Appointment of Head of Internal Audit Unit, the Board of Directors has issued Board of Directors’ Decree No. 001/SM/SK.DIR/VII/2019 dated July 31, 2019 concerning Change of Head of Internal Audit. With this decision, as of July 31, 2019, Head of Internal Audit Unit was held by Yulius Ajie.

Organization of Internal Audit Unit

Internal Audit Unit is under President Director and is led by Head of Internal Audit Unit.

Internal Audit Charter

Internal Audit Unit has an Internal Audit Charter as a guideline for implementation of its duties. Internal Audit Charter was issued on June 18, 2013 and was last updated on July 23, 2018. Internal Audit Charter regulates the following matters:

  1. Structure and Position
  2. Requirements for internal auditor
  3. Duties and responsibilities
  4. Authorities
  5. Internal Audit Code of Conduct
  6. Audit report accountability

Duties and Responsibilities

Duties and responsibilities of Internal Audit Unit in accordance with Internal Audit Charter are as follows:

  1. Prepare and conduct annual internal audit plan
  2. Test and evaluate the implementation of internal controls and risk management systems in accordance with the Company’s policies;
  3. Conduct audits and assessments on efficiency in finance, accounting, operations, human resources, marketing, information technology and other activities;
  4. Provide suggestions for improvement and objective information about the activities examined at all management levels;
  5. Prepare and submit audit reports to President Director and Board of Commissioners;
  6. Monitor, analyze and report on implementation of the recommended improvements;
  7. Cooperate with Audit Committee;
  8. Develop program to evaluate the quality of the internal audit activities;
  9. Conduct special audit within the scope of internal control assigned by President Director

Internal Audit Unit Activity Report

Throughout 2019, Internal Audit Unit has carried out its activities in accordance with the planned work program. Referring to its objectives, each activity of Internal Audit Unit is focused on activities that can provide added value to the Company in terms of efficiency, risk management and to strengthen internal control system.

In early 2019, Internal Audit Unit initiated the implementation of the Company’s Code of Ethics through the publication of Code of Ethics book and carried out socialization of the application of the Company’s Code of Ethics to each party involved in the Company’s business process. It is intended to raise awareness to behave ethically in every part of the Company. With an awareness of behaving in accordance with the Code of Ethics, it is expected to be able to support the effectiveness of the Company’s internal control.

The activities of Internal Audit Unit could not be separated from audit activities in field. The purpose of each audit activity is to ensure that each Company’s operational activities have been carried out in accordance with Standard Operating Procedures (SOP) and related regulations. Audit activities also provide an actual picture of the Company’s activities. From this activity, Internal Audit Unit can make a positive contribution to improve operational efficiency, risk mitigation and optimization of internal control system.

As an independent unit, Internal Audit Unit is a place for every consultation. During 2019, Internal Audit Unit has conducted several consultations. The results of discussion have been followed up to improvement activities. Other activities also include SOP review and testing and special audits.