Gratuity Control

 

Gratification

Gratification is the activity and or acceptance of Gifts/Souvenirs and Entertainment, whether received domestically or abroad, executed through electronic means or without electronic means, and conducted by Insan Pupuk Kaltim related to his/her position in Pupuk Kaltim, thus may cause a conflict of interest that affects the independence, objectivity, and professionalism of Insan Pupuk Kaltim.

 

To actualize a trustful, transparent and accountable business management in Pupuk Kaltim, Pupuk Kaltim implements a firm attitude towards gratification control involving Insan Pupuk Kaltim, although throughout its business activities, gratification is something that may be difficult to avoid by Insan Pupuk Kaltim. This attitude is imperative to be cultivated in Pupuk Kaltim environment to allow Insan Pupuk Kaltim to consistently maintain their dignity during business relationship with Stakeholders.

 

A Gratification Control Guideline was developed in line with Pupuk Kaltim Management Manual, the Code of Conduct and values applicable to Pupuk Kaltim. The guidelines are structured as a gratification control between Insan Pupuk Kaltim with third parties during their business activities. The monitored activities include acceptance, gratification giving and request as well as management unit and reporting mechanism. Gratification control is very important for the company because it can cause a conflict of interest that may affect the independence, objectivity and professionalism of Insan Pupuk Kaltim, which may lead to criminal bribery and prompt legal consequences that potentially harm the company image.

 

Guidelines for Gratification Control of PT Pupuk Kaltim is stated in Directors Decree Number: 55/ DIR/X.2015. Guidelines for Gratification Control of PT Pupuk Kaltim is the main reference for the implementation of Gratification Control in PT Pupuk Kaltim. The Decree list the followings:

1. Guidelines for Gratification Control of PT Pupuk Kaltim
2. Structure and Authorized Duties of Gratification Control Unit (UPG) of PT Pupuk Kaltim
3. Gratification Control Report Form of PT Pupuk Kaltim.

 

This Gratification Control Guidelines apply to Insan Pupuk Kaltim, which include Board of Commissioners, Board of Directors, and Employees of PT Pupuk Kaltim. The aims and objectives of the Company's Gratification Control Guidelines include:

1. Improve the understanding and compliance of all Insan Pupuk Kaltim to the provisions of gratification
2. Establish a conscious and understandable Company environment in handling/controlling all forms of gratification
3. As a Guideline for Insan Pupuk Kaltim to understand, prevent and overcome Gratification in the Company
4. As a Guideline for Insan Pupuk Kaltim in taking a firm stance on Gratification in the Company to realize a good company management
5. To actualize a Company management that is free of all forms of Corruption, Collusion and Nepotism (KKN)
6. To create a transparent and accountable environment which support the GCG within the Company.

 

Basic Principle of Gratification Control in Pupuk Kaltim

1. Giving Away Gift/Souvenir and Entertainment
   Insan Pupuk Kaltim is PROHIBITED either directly or indirectly to give Gifts/Souvenirs and or Entertainment to any party who has business relationship with or competitors of Pupuk Kaltim in the aim of obtaining information, or something that is not justified by applicable legislation, or to influence the targeted party to do and/or not to do anything relating to his/her position.
2. Accepting Gift/Souvenir and Entertainment
   Insan Pupuk Kaltim who due to his position and/or family members (nuclear family), is PROHIBITED to accept or request either directly or indirectly Gift/Souvenir and or Entertainment from any party who has business relationship with or competitor of Pupuk Kaltim in the aim of obtaining information, or something that is not justified by the applicable legislation, or to influence the party concerned to do and/or not to do anything relating to his/her position.

 

If Insan Pupuk Kaltim was offered/awarded a Gift/Souvenir and or Entertainment which is not in complieance to the provisions set out in this Manual, he/she is obliged to DO REJECTIFICIAL DIFFERENCE to the offer/gift, by explaining these policies and rules to the Third Party.

 

Protection of Reporting Entity

1. The complainant of Gratification shall be entitled to obtain safeguards from the Company in the form of:
   • Protection from non-objective and detrimental or offensive personnel actions toward the Reporting Entity such as (but not limited to) downgrading of the rank of position, decrease of appraisal, proposals for assignment/mutation or other career barriers;
   • Mutation/ transfer to the Reporting Entity in the event of intimidation or physical threat to the complainant;
   • Legal assistance in accordance with applicable provisions in the Company.
2. The safeguard measures referred to the number 1 (one) above are applied in the case of:
   • Intimidation, threats, discredit or other unusual treatment from both internal and external parties;
   • The Reporting Entity submits a written application to the Board of Directors through UPG.

 

Sanctions for Violations

Violation of the provisions written in the Gratification Control Guidelines will be subject to applicable criminal sanctions in the company and applicable legislation.