Govt Committed to Strengthening Governance in Public, Corporate Sectors

    Wahyu Dwi Anggoro - 05 March 2021 14:15 WIB
    Govt Committed to Strengthening Governance in Public, Corporate Sectors
    Illustration (Photo:Medcom.id)



    Jakarta: Coordinating Minister for Economic Affairs has issued Decree Number 44 of 2021 on the National Committee for Governance Policy (KNKG). 

    The Decree aims to renew the mandate of the National Committee for Governance Policy (KNKG) to strengthen governance in the public and corporate sectors. 






    "The KNKG term has expired on 31 December 2019, so it is necessary to renew the mandate in the context of the Government’s efforts to deal with covid-19 and speed up national economic recovery,” Coordinating Minister for Economic Affairs Airlangga Hartarto has said. 

    The policy is in line with Law Number 11 of 2020 on Job Creation, particularly related to business licensing, whose implementation is regulated through Government Regulation (PP) Number 5 of 2021 on the Implementation of Risk-Based Business Licensing and Government Regulation Number 6 of 2021 on the Implementation of Business Licensing in the Regions. 

    The KNKG has issued several guidelines for improving governance, including the Good Corporate Governance (GCG) Guidelines, GCG-Based Risk Management Guidelines, and Banking GCG Guidelines. 

    Since 2018, personnel certification program in the field of governance competence has also been implemented for public officials and corporate management. 

    Based on the ranking on the Worldwide Governance Indicators, Indonesia’s governance ranking in the last five years shows the trend of improvement in indicators of accountability, government effectiveness, regulatory quality, and law enforcement.

    (WAH)

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