The Company has built a hard structure and soft structure to support the Good Corporate Governance (GCG) implementation infrastructure. The Company refers to Law No. 40 of 2007 concerning Limited Liability in determining the GCG hard structure, which stipulates that the corporate governance body’s structure consists of the General Meeting of Shareholders (GMS), the Board of Commissioners, the Board of Directors, and supporting organs, including Committees under the Board of Commissioners. The GMS, the Board of Commissioners, and the Board of Directors have formed Astra Agro’s highest governance structure. Astra Agro’s Board of Commissioners may not serve as a Director at the same time in order to implement good corporate governance and maintain independence.
The Directorate of Agronomy and Sustainability is directly responsible for the Company’s sustainability function, which includes environmental and social aspects. The Directorate of Agronomy and Sustainability is critical to meeting the targets outlined in the 5-Year Action Plan. The Vice President of Sustainability (VP Sustainability) is authorized and responsible for reporting progress on policy implementation to the President Director and Chief of Agronomy and Sustainability Officer (CASO) on a regular basis. VP Sustainability coordinates all functions and operations to ensure that the sustainability principles are implemented, monitored, reported on, and verified. Progress is assessed as a source of future improvement. In addition, VP Sustainability examined the organization’s internal controls to ensure the credibility of the Company’s sustainability reporting. The Company has also equipped each subsidiary with sustainability assistants who have the necessary competence and educational background to ensure that the substance of sustainability is properly implemented. Human resources with varying levels of education (Doctors, Masters, and Bachelors) support the organization; sufficient educational backgrounds come from domestic and foreign graduates, for example, from leading universities in Indonesia such as IPB University, University of Indonesia, Gadjah Mada University, Brawijaya University and the University of Sydney-Australia.
Astra Agro’s sustainability governance structure for the period 2022 is as follows: