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INTP:IJ Rp. 15,025 altimage 5.07%
01-Dec-2020 16:54
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INTP:IJ Rp. 15025 altimage 5.07%
01-Dec-2020 16:54

Internal Control System

Internal Control System/ICS is a process designed and performed by the Board of Commissioners, Board of Directors, and other members of the management as well as all of the Company’s personnel, aimed at providing reasonable assurance in achieving the effectiveness and efficiency of operations, reliability of financial reporting, and compliance with the applicable laws and regulations.

ICS is performed to secure investments and assets, to comply with the applicable regulations and policies, and to encourage the efficiency and effectiveness of the Company’s operations. ICS operates throughout the entire organization including the Board of Directors and all levels of the Company’s management, where ICS provides direction, guidance, and supervision, while the Audit Committee and Internal Audit monitor its implementation.

A good ICS requires cooperation, commitment, and strong dedication from all parties and requires coordination with external auditors. This coordination is important so that the entire audit process can be implemented comprehensively, efficiently, and effectively. ICS is applied in all operational and financial fields, in accordance with the applicable laws.

The objectives of the ICS are:
1. To achieve compliance with applicable regulations and laws issued by the government and the Company’s internal policies, provisions, and rules.
2. To ensure that financial and management information is accurate, complete, transparent, and timely.
3. To ensure effective and efficient use of the Company assets to protect against the risk of loss and leakage.
4. To reduce the risk and impact of losses, irregularities, fraud, and abuse.
5. To instill a corporate culture in terms of early identification of weakness and fraud, assessment of policy reasonableness, and improvement of relevant procedures.
6. To ensure that the management of plants has been carried out in accordance with agreed standard operating procedures.

Effectiveness Evaluation of the Internal Control System

The Company evaluates the effectiveness of the implementation of ICS on an ongoing basis. ICS has been implemented throughout Enterprise Resource Planning (ERP)/e-Workflow systems. All stages, including manufacturing, sales and distribution, procurement of goods and services, material inventory, human resources, finance and accounting and general administration have in-built ICS modules.

Monitoring and mitigation of major risks in plants operations and financial activity have always been a priority and serve as part of the daily activities of ICS and is undertaken by the Audit Committee and Internal Audit.

Indocement, a producer of Semen Tiga Roda Cement and Semen Rajawali