04 Oktober 2011
The Implementation of PT Krakatau Steel (Persero) Tbk with Corruption Eradication Commission (KPK) Seminar Gratification

Based on the Memorandum of Understanding between the Ministry of State Owned Enterprise (SOEs) with the Corruption Eradication Commission (KPK) Number: Mou-04/MBU/2011 and Number: SPJ-21/01/05/2011 dated 26-05-2011 about Cooperation in Eradication of Corruption Act, which is based on the basic rules of Law No. 31 in 1999 JO and Law No. 20 year 2001 on Combating Criminal Acts of Corruption as mentioned that the Gratification is as a form of Corruption.

As the State-Owned Enterprise, PT Krakatau Steel as a public company must comply to follow and to implement the prohibition settlement of Gratification in companys environment. Gratification prohibition in order to build Good Corporate Governance in PT Krakatau Steel (Persero) Tbk is an implementation of Good Corporate Governance Krakatau Steel (GKSG) in business management both for the entity level and transactional that put forward the principles of transparency, accountability, responsibility, independence, and fairness which are very relevant in supporting the achievement of companys Vision and Mission.


It needs a strong commitment from the Board of Directors and Commissioners to encourage and to create a business environment that reflects good business ethics based on high moral and obedience to the laws and regulations applied.

So as a form of matters implementation which contained in the Memorandum of Understanding, particularly in Article 5 of Gratification of paragraphs 1 and 2, the Gratification Seminar of PT Krakatau Steel (Persero) in cooperation with the Corruption Eradication Commission (KPK) has conducted on Friday, July 22nd, 2011 which held at the Multipurpose Building HCP & D (Pusdiklat) PT Krakatau Steel, Cilegon.

Seminar which socializing the Gratification framework in PT Krakatau Steel environment is organized as a form of socialization media and knowledge sharing for all management of PT Krakatau Steel (Persero) Tbk and Group. This seminar carrying out the purpose of building awareness and concern for employees and board of leaders in the public company management based on Clean Governance to build a positive image as a "Trusted Company". It is attended by the directors of PT Krakatau Steel Group and Employees Unions of PT Krakatau Steel, as well as the speakers from the Gratification Director of Corruption Eradication Commission (KPK) Muhamad Sigit.

The seminar started with presentation materials of Gratification Socialization that showing the Gratification position compared to the violation of law with the form of bribery and extortion which has indeed actually is an unlawful act. Gratification is a form of permissive action that received a thing and in this case it needs to prove whether this provision includes the category of bribery.

Meanwhile, according to Law No.31/199 jo. Law No.20 of 2001 Explanation of Gratification is "Giving in a wide meaning, including the provision of money, goods, rebate (discount), commissions, interest-free loans, travel tickets, accommodation facilities, travel, free medicines, and other facilities”. The gratification is including both in the local and international which using electronic or without electronic devices.


Then according to Law 20/2001 Gratification which gained by any civil servant or state apparatus is considered as a bribe, but the same provisions do not applied if the recipient reported the gratification to the Corruption Eradication Commission (KPK) that must be done no later than 30 (thirty) working days since the date of such gratuities received.

In this case provided some examples submitted for Gratification acceptance categories including, for example, a state officer who receive gratuity money from the bid winner; wife of state officer who earn shopping vouchers and traveling abroad tickets from her husbands business partner; a newly appointed state officer who receive a car as an introduction present from the businesses in its territory; and / or a licensing officer who receive money from the permit application that has been served.

The legal basis related to the Gratification is explained in the Act named Law no. 20 Year 2001 on Combating Corruption which is:

- Article 12 b paragraph 1 : Related with the constraints that are considered of Gratification.

- Article 12 b paragraph 2 : Criminal Penalties for perpetrators who receive gratification.

- Article 12 c paragraph 1-4 : The procedure for reporting Gratification which received by civil servant or state officer.

- Anti-BRIBERY Charter signed by the Director of SOE witnessed by the Minister of SOE & NCG on February 28, 2011.

In this seminar explained about Memorandum of Understanding Contents between the Ministry of SOE and cooperation in the eradication of Corruption at the SOE environment, which is:

- Article 5, paragraph 3: The Ministry of SOE encouraging all SOE companies to prepare and to implement the Control of Gratification Program in each SOE companies.

- Article 5, paragraph 4: The Ministry of SOE input the application of gratification control systems as one of a standard compliance assessment, accountability and transparency as well as evaluation benchmarks of good corporate governance in SOE.

- Article 5, paragraph 5: Ministry of SOE and the Corruption Eradication Commission will monitor the compliance SOE Board of Directors and Commissioner on the implementation of the Gratification provisions.

Then the other explanation of Gratification Control Program (PPG), which is a series of socialization activities and Gratification control, the implementation of Gratification control system, and monitoring and evaluation which carried out in collaboration with KPK and SOE, the purpose is to increase understanding and awareness of reporting Gratification, creating the environment agency / organizations which are aware and controlled in Gratification handling, and simplify the reporting of Gratification revenues.

To support the implementation of Gratification Control Program at the Institution / SOE, the Gratification Unit Manager (UPG) is required which established to carry out such functions as follows, to encourage the implementation of rules related to control the acceptance of gifts / facilities; to socialize the relevant provisions on controlling the acceptance of gifts or facilities to internal institution; to receive the reporting and processing of receiving gifts / facilities reports from agency officer together with the KPK; to prepare and to implement the SPP / WBS mechanisms; to monitor and to evaluate the implementation of control functions together with the KPK; and provide information and data related to the development of Gratification control system as a management tools for the institution leader.


Currently the company which has reported the Gratification is PT Pertamina (Persero), PT Garuda Indonesia (Persero), and PT Bank Jabar Banten that recorded a pretty fantastic transformation in the number of Gratification reported before and after PPG.


It is submitted that to support the implementation of the PPG program in Institution / Company it is also required a written commitment from the Commissioners and the Board of Directors to implement this program as well as the examples of good models from the top level of organization to the bottom (Tone from the Top) consistently and consequently to start reporting every gift that leads gratuities.

In the end, some important things that need attention by PT Krakatau Steel and need to follow-up from the Management in order to enhance the good corporate governance and to comply and to obey the rules and regulations, particularly with Corruption Eradication efforts as follows:

1. Needs the commitment of Directors and Commissioners which declared clearly and unequivocal as the support in the implementation of Corruption Eradication both in PT Krakatau Steel (Persero) Tbk. and Group. It is also needs a good role model who always reports any Gratification received consistently (Tone from the Top).

2. Needs advanced stages of socialization to all employees on Gratification understanding of both in PT Krakatau Steel (Persero) Tbk. environment and in Group.

3. Input the PPG Program as one of the company cultural programs implementation (CIRI) especially regarding the value of Integrity.

4. Sets the Working Unit which is responsible as a Gratification Unit Manager (UPG), who can promote & raise awareness of all employees in preventing and controlling Gratification in the environment of PT Krakatau Steel (Persero) Tbk. & Group.

PT Krakatau Steel realize that the stakeholders and investors always expect company in running the business and its operational, and consistently applying good corporate governance based on Good Krakatau Steel Governance to achieved the Most Trusted  Company, so that those efforts will give a value and could add a credibility in the eyes of Stakeholder and Investor.


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