About PT.PP

Corporate Governance

Remuneration and Nomination Policy

Remuneration function is embedded with Board of Commissioners according to Board of Commissioners duty and responsibility division under PT PP (Persero) Tbk’s Board of Commissioners Decree Number 005/SK/KOM/PP/2015 dated June 30, 2015 concerning PT PP (Persero) Tbk’s Board of Commissioners Duty Division, and the implementation is helped by Audit Committee as explained in “PT PP (Persero) Tbk’s Board of Commissioners Duty and Responsibility” signed on June 30, 2015.

The Board of Commissioners function in remuneration system implementation includes recommendation of Board of Directors and Board of Commissioners remuneration amount. The Board of Commissioners determined amount of salary/honorarium, allowance and facilities for year of 2015 and Incentives for Performance in Fiscal Year 2014 for the Board of Directors and Board of Commissioners by referring to:

  1. Minister of SOE Regulation Number PER-04/MBU/2014 dated March 10, 2014 regarding Board of Directors, Board of Commissioners and Supervisory Board Remuneration Policy in State Owned Enterprise.
  2. Copy of Minister of SOE Decree Number SK-46/MBU/2014 regarding President Director Salary and Board of Directors, Board of Commissioners and Supervisory Board Incentives/Bonus Calculation in State Owned Enterprise dated March 10, 2014.
  3. Board of Commissioners and Board of Directors Decree Number 031/KOM/PP/2015 and 105/EXT/PP/DU/2015 dated May 11, 2015 and according to Annual GMS fourth Agenda Fiscal Year 2014 dated May 21, 2015.

Remuneration system mechanism implemented by the Board of Commissioners refers to PER-04/MBU/2014 dated march 10, 2014 regarding Board of Directors, Board of Commissioners and Supervisory Board Remuneration Policy in State Owned Enterprise and Minister of SOE Decree Number SK-46/MBU/2014 dated March 10, 2014 regardingBoard of Directors, Board of Commissioners andSupervisory Board Remuneration Policy in State Owned Enterprise.

The function of Remuneration Committee carried out by the Board of Commissioners is as follows:

  1. Review and discuss Remuneration calculationcarried out by Board of Commissioners and Board of Directors;
  2. Board of Commissioners proposes amount of remuneration for Board of Commissioners and Board of Directors to the AGMS;
  3. AGMS grants approval in terms of Remuneration Amount for Board of Commissioners and Board of Directors for current year.

​​The function of Nomination Committee carried out by the Board of Commissioners is as follows:

  1. Preparing selection and recruitment system for the Board of Directors’ candidates.
  2. Preparing Board of Directors candidates criteria and formation to be proposed by Board of Commissioners to GMS and candidate for Directors to be appointed by the Board of Commissioners to fill vacant position, if occurred.
  3. Preparing Board of Directors candidates assessment and nomination systems;
  4. Providing evaluation and analysis on employees’ selection, recruitment and succession system.

Payroll and Incentive System
The Company has a job grading system for employee payroll. The job grading calculation is reviewed from several elements, including know-how, problem solving and job accountability. Within this grading system, employee will be continuously triggered to increase performance and achieve career promotion to certain level with higher exposure and will be automatically appraised the employee’s remuneration. The Company designs salary appraisal based oninflation and capacity of the Company in annual basis.

Board of Directors’ Succession Policy
The Company has a Board of Directors replacement/successor candidate appointment, by preparing “Talent Pool” for one level below the Board of Directors. Competency appraisal process is done by Independent Consultant. The Talent Poll will be proposed by Board of Commissioners to the Shareholders.