🏛️ Good Corporate Governance (GCG) Implementation
By implementing GCG principles (Transparency, Accountability, Responsibility, Independence and Fairness), Pupuk Kaltim can sustain and remain resilient in facing intense business competition to achieve the Company's Vision, Mission and Objectives more effectively.
GCG Benefits
Provides protection for stakeholders and creates a conducive environment for sustainable growth
As an output, GCG will provide protection for stakeholders and ultimately GCG will help create a conducive environment for sustainable business world growth.
of GCG
Pupuk
Kaltim
Governance
Structure
Mechanisms that
regulate
relationships and
boundaries of roles
and organ functions
as well as evaluation
and monitoring
of GCG implementation
⚖️ Two-Tier Governance Structure
Pupuk Kaltim implements a two-tier governance structure as the basic framework in ensuring the implementation of GCG principles consistently, transparently, and accountably.
Board of Commissioners
Non-Executive Function
Carries out supervision and provides strategic direction to the Board of Directors to ensure company activities run in accordance with legal provisions, GCG principles, and the interests of shareholders and stakeholders.
Board of Directors
Executive Function
Responsible for company operational management, business strategy implementation, and achieving sustainable performance in accordance with Pupuk Kaltim's vision and mission.
This structure clearly separates supervisory functions and management functions, so that the company's decision-making mechanism runs objectively and balanced for the long-term interests of the company and all stakeholders.
🏢 Corporate Governance Structure
Pupuk Kaltim is committed to implementing professional, transparent, and accountable corporate governance through systematic nomination processes and diverse composition.
📋 Board of Commissioners and Directors Nomination
The nomination procedure for Board of Commissioners and Directors members of Pupuk Kaltim refers to Ministry of SOE Regulation No. PER-3/MBU/03/2023 on SOE Organs and Human Resources, Pupuk Kaltim's Articles of Association, Board Manual and Company Code of Ethics.
Each candidate for Board of Commissioners and/or Directors goes through screening and assessment stages conducted systematically and transparently in accordance with criteria for nomination and appointment of Directors and Board of Commissioners to ensure equal opportunities, inclusive leadership, adaptive, and ready to face future challenges.
Board of Commissioners and Directors Composition Diversity
Pupuk Kaltim believes that diversity is a strength in running business. In forming the Board of Commissioners and Directors, we prioritize diversity in expertise, experience, gender, ethnicity, religion, as well as professional and educational backgrounds. With diverse composition, the Board of Commissioners and Directors are able to provide broad perspectives, objective decision-making, and stronger oversight of company strategy.
Board of Commissioners and Directors Composition
Currently, Pupuk Kaltim's leadership structure consists of 6 Board of Commissioners members and 5 Board of Directors members. Out of 11 total members, there are 10 men and 1 woman, reflecting the company's commitment to promoting professional, integrity, and inclusive leadership.
Pupuk Kaltim recognizes the importance of corporate management in today's complex and highly competitive business environment. The Board of Directors and Board of Commissioners are required to carry out their duties in accordance with legal provisions, company objectives and regulations, and act with honesty, integrity, and prudence for the best interests of the company, as well as avoid negligence or intentional actions that may harm the company.
Board of Commissioners : 6 people
Board of Directors : 5 people
GENDER DIVERSITY
TENURE OF THE BOARD OF DIRECTORS AND COMMISSIONERS
📋 Independence Statement
As of October 16, 2025, Pupuk Kaltim's Board of Commissioners consists of 6 people and Pupuk Kaltim's Board of Directors consists of 5 people. As many as 4 Board of Commissioners members are Independent Commissioners based on the Extraordinary General Meeting of Shareholders' Decision based on the definition of Pupuk Kaltim's Independent Commissioner qualifications, and 6 Board of Commissioners members meet independence qualifications according to S&P Global CSA criteria.
| No. | Board of Commissioners | Independence Criteria S&P Global CSA |
Extraordinary GMS Decision Pupuk Kaltim |
|---|---|---|---|
| 1. | D. Andhi Nirwanto | ✓ | ✗ |
| 2. | Azis Samual | ✓ | ✗ |
| 3. | Sukardi Rinakit | ✓ | ✓ |
| 4. | Gustaaf AC Patty | ✓ | ✓ |
| 5. | Etha Rimba Paembonan | ✓ | ✓ |
| 6. | Musthofa | ✓ | ✓ |
🏛️ Board of Commissioners Committees
In carrying out its duties, the Board of Commissioners has supporting organs, including the Audit Committee, Good Corporate Governance Committee, Human Resources, Nomination-Remuneration, and Investment Committee (KGSRI), Risk Monitoring Committee (KPR), and Corporate Governance Committee (KTKT). The term of office for Committee members is set for 3 years and can be extended once for 2 years of service.
Committee Term of Office
3 years + maximum extension of 1 time for 2 years
⚖️ Ethics and Compliance
Pupuk Kaltim is committed to conducting business ethically, transparently, and responsibly in accordance with applicable laws and regulations. We implement GCG principles as the foundation for every decision-making process and operational activity of the company.
Through the implementation of ethical codes and behavioral guidelines, all Pupuk Kaltim personnel are encouraged to uphold integrity, professionalism, and avoid all forms of violations and conflicts of interest.
Furthermore, the company strengthens the compliance culture through whistleblowing system mechanisms, compliance training, and strict supervision to ensure all business activities run according to high legal and ethical standards.
With this commitment, Pupuk Kaltim strives to maintain stakeholder trust and create a clean, integrity-based, and sustainable work environment.
🌐 UN Global Compact Membership
As a member of the UN Global Compact, Pupuk Kaltim is committed to integrating the 10 UNGC Principles into business strategy and operations. This commitment encompasses respect for human rights, labor standards, environmental protection, and the eradication of corruption in all its forms.
Through this membership, Pupuk Kaltim strengthens its active role in promoting sustainable and responsible business practices, as well as contributing to the achievement of the Sustainable Development Goals (SDGs).
📋 Code of Conduct
Pupuk Kaltim is committed to conducting business with integrity, professionalism, and responsibility through the implementation of the Corporate Code of Ethics as a behavioral guideline for all company personnel. This code of ethics serves as the foundation for interacting with fellow employees, customers, business partners, shareholders, and the wider community.
As a form of this commitment, all Pupuk Kaltim personnel including members of the Board of Commissioners, Directors, members of the Board of Commissioners Supporting Committee as well as every individual employee (organic and non-organic) of Pupuk Kaltim are required to sign the Integrity and Compliance Charter annually as a statement of compliance with the Corporate Code of Ethics. The signing has been implemented using a web-based electronic system accessible at epi.pupukkaltim.com.
Additionally, the integrity charter signing is also conducted by external parties related to the Company's business, such as vendors, interns, fostered partners, distributors, and corporate action implementation.
The implementation of the code of ethics encompasses compliance with laws and regulations, rejection of corruption practices, bribery and gratification, whistleblowing systems, conflict of interest management, anti-fraud, anti-discrimination, anti-monopoly and anti-unfair business competition practices, money laundering, insider trading, occupational health and safety, environmental preservation, as well as maintaining information confidentiality and company honor.
📢 Board of Directors & Board of Commissioners Statement
The Board of Directors and Board of Commissioners of Pupuk Kaltim affirm that throughout 2024, all company personnel are required to maintain neutrality and not engage in partisan political activities or political campaigns. This appeal applies to management officials, employees, and company business partners.
The arrangement and signing of this appeal has been carried out officially and in writing as part of the implementation of Good Corporate Governance principles.
With this commitment, Pupuk Kaltim ensures that all operational activities and business decisions are carried out professionally, transparently, and free from any political influence, in order to maintain the company's integrity and stakeholder trust.
Through this commitment, Pupuk Kaltim builds a clean and transparent work culture, as well as strengthens the trust of all stakeholders in the company.
📊 Compliance
Pupuk Kaltim is committed to building a strong compliance culture through the implementation of ISO 37301:2021 – Compliance Management System. This standard ensures that all business processes run in accordance with laws, internal policies, and international standards. With a structured compliance system, Pupuk Kaltim strengthens transparent and integrity-based corporate governance.
Anti-Corruption
Pupuk Kaltim is committed to conducting business in a clean, transparent, and integrity-based manner through the implementation of anti-corruption policies in all company activities.
Anti-Fraud
Pupuk Kaltim implements a Fraud Control System as an effort to prevent and control potential fraud in all business processes. This system includes strengthening internal controls, early detection, violation reporting mechanisms, as well as firm and measured enforcement actions.
Through the implementation of these systems, Pupuk Kaltim strengthens its culture of integrity and transparency, and ensures the realization of clean and sustainable corporate governance.
📢 Whistleblowing System
Pupuk Kaltim implements a Whistleblowing System (WBS) based on ISO 37002:2021 as a transparent, secure, and accessible violation reporting mechanism for all stakeholders. This system is designed to promote a culture of integrity by ensuring confidentiality and protection for reporters, as well as ensuring every report is followed up objectively and professionally.
Through the implementation of an effective WBS, Pupuk Kaltim strengthens its commitment to anti-corruption, anti-fraud, and GCG implementation according to applicable standards.
Pupuk Kaltim has synergized with PT Pupuk Indonesia (Persero) in providing the Integrated Whistleblowing System platform for Pupuk Indonesia Group. Every individual can anonymously report various violations that occur within the Pupuk Kaltim and Pupuk Indonesia Group environment.
📊 Reporting on Breaches of the Code of Conduct
The following is the number of violation reports throughout the last reporting year (fiscal year 2024).
🌱 Development of Ethics and Anti-Corruption Culture
Pupuk Kaltim consistently builds and strengthens its ethics and anti-corruption culture as part of its commitment to integrity and Good Corporate Governance for all Pupuk Kaltim employees and stakeholders. Through the implementation of a code of ethics, regular training, socialization of integrity values, and a safe and anonymous violation reporting system, the company promotes the creation of a clean and transparent work environment.
🤝 ESG Implementation in Procurement Process
Pupuk Kaltim integrates ESG principles from the upstream procurement process, ensuring that sustainability values flow to downstream operations and are felt by customers. Every supplier selection and management decision balances quality, cost, and timeliness with business ethics, respect for human rights and fair labor practices, occupational health and safety, and environmental protection.
Through the Supplier Code of Ethics Guidelines, due diligence and risk-based assessments, Pupuk Kaltim builds accountable partnerships and drives continuous improvement. We accompany these efforts with supplier and SME capacity development as well as provision of safe reporting channels. With this approach, Pupuk Kaltim minimizes risks, improves service quality, and contributes to Scope 3 emissions management—creating long-term value for all stakeholders.
🤝 Vendor Gathering 2024
PKT organized Vendor Gathering 2024 with the theme "Grow Together Towards a Synergistic Partnership" on August 29, 2024 in Balikpapan in a hybrid format, attended by 134 offline participants and 233 online participants (total 367 participants). One of the main sessions discussed "How to Implement CSMS (Contractor Safety Management System) at Pupuk Kaltim?" which guided participants to understand the introduction of CSMS, the importance of compliance with OHS regulations, the role of Standard Operating Procedures (SOPs) as implementation guidelines, the design of OHS programs that must be prepared within the CSMS framework, and the urgency of OHS coordination meetings to ensure consistency of implementation in the field.
This session also explained the framework and assessment weights in CSMS documents, so that supplier partners obtain clarity on fulfillment stages, expected evidence, and evaluation standards. Through this forum, PKT aligns workplace safety expectations with suppliers while strengthening the integration of ESG aspects in the procurement process, particularly the S dimension (safety & fair labor practices) and G (compliance & accountability), to encourage synergistic, transparent, and sustainable partnerships.
🌱 Vendor Gathering 2025
As a form of PKT's continued commitment to ESG implementation in third-party scope, PKT again organized Vendor Gathering 2025 with the theme "Together for Sustainability, Equity, and Integrity" on September 30, 2025 in Balikpapan in a hybrid format (attended by 175 offline company participants and 100 online participants). This forum is aimed at aligning sustainability expectations between PKT and supplier partners while emphasizing the implementation of Sustainable Procurement, where environmental, social (including OHS & human rights), and governance aspects become equal considerations with quality, cost, and timeliness in the procurement process.
The core material of the activity discussed supplier sustainability criteria, supplier code of ethics (business integrity, anti-bribery/corruption, regulatory compliance), and the assessment-monitoring-improvement flow: starting from risk assessment and due diligence, integration of ESG clauses in tender/contract documents, to periodic audit mechanisms and corrective action plans (CAPA). Participants also received practical guidance related to strengthening traceability, incident reporting, and measuring supplier contributions to ESG targets (including aspects relevant to Scope 3 emissions).
Through this alignment, PKT and suppliers build more accountable, transparent partnerships that are ready to make continuous improvements, so that daily procurement decisions become increasingly aligned with the company's ESG goals and create long-term value for all stakeholders.
🔍 ESG-based Supplier Screening
Pupuk Kaltim screens significant suppliers through PKT's Supplier Code of Ethics which integrates Environmental, Social, and Governance (ESG) aspects as prerequisites for cooperation. Suppliers are required to comply with company regulations and policies and maintain business integrity (G); respect human rights—including prohibition of forced labor and child labor, anti-discrimination, fulfillment of wages and fair labor practices—and implement effective OHS (S); and demonstrate adequate environmental management, complete permits, pollution prevention, and documented hazardous substance management (E).
As a strengthening of ESG pillars, PKT also requires suppliers to sign an Integrity Pact which includes: commitment to anti-corruption, anti-fraud, and conflict of interest management; employment compliance that prohibits forced/illegal labor and underage workers and ensures fair working hours, wages, workload, and benefits; proactive actions to control OHS risks according to regulations; prohibition of discrimination and support for workers' rights; environmental compliance including waste minimization and resource efficiency; and operational efficiency efforts to reduce greenhouse gas emissions and energy consumption.
With the combination of Supplier Code of Ethics + Integrity Pact and risk-based due diligence mechanisms, PKT ensures suppliers operate ethically, legally compliant, safely, and socially-environmentally responsible.
📋 Related Documents
Download official documents related to PKT supplier code of ethics and integrity pact for reference and guidance for sustainable partnerships.
📊 Supplier Performance Review
In the Supplier Screening & Performance Review process, PKT implements a Corrective Action Plan (CAPA) as a quality tool to close compliance and supplier performance gaps. In line with partner performance assessments, PKT provides coaching opportunities for suppliers from Good, Fairly Good, and Poor value categories. Coaching is conducted through filling out structured forms that guide suppliers: describe findings, analyze root causes, set improvement targets (OHS/environment/compliance/operational), develop phased action plans, and attach implementation evidence.
The PKT team assesses the feasibility of plans, agrees on deadlines, and conducts regular monitoring until closure is achieved. Every business partner not only meets operational needs, but also contributes to the ESG targets of the Pupuk Indonesia Group, including the reduction of Scope 3 emissions and the improvement of ethical business practices.