Background
Performances of PT Bayan Resources, Tbk business activities generally are inseparable from relationships and interactions between the parties thereof, both internal and external, who collaborate with each other in a harmonious, compatible and sustainable manner without neglecting the ethics and principles of good corporate governance (GCG). In relation to business relationships, one frequent occurrence that consistently and unavoidably arises in the ordinary course of business is the giving of gratuity from one party to another.
Therefore, in order to maintain business relationships with stakeholders, it is necessary to regulate matters related to gratuity and its reporting procedures or mechanisms within the Company.
In order to manifest trustworthy and transparent management of Bayan Group's business, the Company realizes the importance of firm attitudes towards the management of gratuity involving all Bayan Group personnel. This is an important matter to cultivate in the Company environment as a highly honourable, respectable, and impressive learning process in business relationships with stakeholders. To address such issue, this Guidelines for Gratuity Management and Control is therefore being prepared.
Purpose, Objectives and Benefits
This gratuity control-related policy constitutes a basis for the Bayan Group in regulating matters related to the Company's business relationships with work partners and/or vendors that may induce conflicts of interest.
This policy is intended as a guideline for all employees to avoid conflicts of interest related to gratuity to create good corporate governance in the Company's business activities.
Manifesting Company Management that is free from all forms of Corruption, Collusion and Nepotism (KKN).
Definition of Gratuity
This guideline was prepared to regulate the Management and Control of Gratuity between Bayan Group personnel and parties related to the Company's business activities.
As per the definition of Gratuity in the Corruption Eradication Law and as set forth herein, it is described that:
“Gratuity" means gift-giving in a broad sense, which includes commodity money, gold, discounts, commissions, interest-free loans, travel tickets, lodging facilities, tourist trips, free medical treatment, and other facilities that are rightfully expected to have been given, received or allocated in order to influence the professional objectivity of the recipient. These gratuities are either received domestically or internationally and are given with or without electronic means.
General Policy
Gratuities are often considered part of common business courtesy, but in certain cases receiving gratuity may impair objectivity of Bayan Group personnel. The company prohibits Bayan Group personnel to directly or indirectly accept or seek gratuity that are considered lavish and beyond customary business practice, of which, will contradict their objectivity upon performing the duties and obligations.
When offered/given gratuity that do not comply with the provisions set out herein, personnel must reject such offer/gift or, if already received, must report it to the Gratuity Management and Control Team.
Basic Principles
Rejection of Gratuity
In the event of offering/giving of gratuity that does not comply with the provisions set out herein, personnel must reject such offer/giving of gratuity in a polite manner, by explaining this Policy and rules to the giver, and must report such rejection to the Company's Gratuity Management and Control Team.
Receipt of Gratuity
All Bayan Group Personnel are prohibited from receiving or requesting, either directly or indirectly, gratuity for the reason of their position and/or family members (Immediate Family) from any Party with whom they have business relationships or from competitors aiming to obtain information, or any other matter not justified by applicable statutory provisions.
Gratuity Control
All Bayan Group personnel have the responsibility to prioritize the principles of Accountability and Transparency in reporting gratuity activities for the reason of their positions and or family members (Immediate Family).
Reporting of Gratuity
All Bayan Group Personnel are required to report the giving of gratuity for the reasons of their position and/or family members (Immediate Family) which fall into the category of gratuity Subjected to Reporting (criteria for gratuity subjected to reporting will be explained in the next chapter) to the Gratuity Management and Control Team.
Gratuity classifications
Gratuity classified as prohibited
Are any forms of gifts received which are related to recipient’s position and in contrary with their obligations or duties.
Gratuity become prohibited if it meets minimum 1 (one) of following components:
Related to recipient’s authority/position in the Company, therefore causing conflict of interest that affects independence, objectivity, and professionalism.
Related to specific purpose to secure any improper advantage to assist in obtaining or retaining business for or with, or directing business, to external parties
Having the purpose to directly or indirectly influence Bayan Group Personnel’s capacity to conduct any action in violation of his or her lawful duty.
Gratuity subject to reporting
Several types of gratuities are subject to reporting if they meet the following criteria:
Gifts in a broad sense, such as goods, gold, money, entertainment facilities, tour facilities, vouchers, accommodation from known stakeholders, and other forms of valuable gifts which are reasonably expected to be given and received due to the authority related to the recipient's position, and therefore may affect the professional objectivity of such Bayan Group personnel in their works.
All forms of gifts in celebration of Eid al-Fitr / Christmas or religious holidays from Stakeholders with a value exceeding IDR. 5,000,000 (five million Rupiah).
Provision of tour and travel facilities (hotels, transportation/tickets, etc. from external stakeholders to Bayan Group personnel)
Acceptance of transportation facilities, accommodation, pocket money during official business trips from prospective suppliers of goods or services partnering with the company.
Gratuity received from a third party as a gift for cooperation/cooperation agreement being entered into.
Informal gifts constituting money or its equivalent as a token of gratitude received by Bayan Group personnel from other parties related to feasibility check or approval or monitoring process over the performances of work by such other party.
Gifts in any form from other parties in relation to promotions and new position of Bayan Group personnel usually given as token of introduction.
Opportunities or benefits, including special amount/interest percentage or commercial discounts received by Bayan Group personnel due to personal connection or position and which do not apply to the general public.
Gratuity received by Bayan Group personnel in a wedding ceremony from a third party with a value exceeding IDR. 5,000,000 (Five million Rupiah).
Special food, drinks and entertainment provided due to the position or authority of the Bayan Group personnel in question, which are provided outside of and not relevant with their official duties.
During the course of communication, negotiation and performance of activities with other parties related to the performance of their duties and authority.
As an expression of gratitude before, during or after the process of procuring goods and services, which may potentially affect the objectivity of such Bayan group personnel;
Constituting gift or souvenir addressed to Bayan Group personnel during a relevant official visit, with a value exceeding IDR 5,000,000 (Five million Rupiah).
Gifts or rewards received by employees during Company assignment when attending an event (such as seminars, tournaments, sports, gatherings) organized by vendors or non-vendors (such as agencies, associations), which are required to be reported and handed over to the Gratuity Control Team.
Gratuity not subject to reporting
Gratuity has a very wide scope, since in principle there are many forms of gifts which are completely unrelated to the recipient’s positions and are not in contrary with their obligations or duties, and therefore these gratuities are not subject to reporting.
Gratuity which are not subjected to reporting are:
Generally applicable gifts, namely gifts that apply equally in terms of type, form and condition or value to all parties, meet fairness or propriety principles, and do not violate statutory regulations, norms of politeness and decency.
Calendar, agenda;
Souvenirs (such as pens, items with company logos);
Given under certain conditions which do not allow rejection, such as: conditions which may cause damage to good relationships between institutions/companies, endanger oneself, and incur other threats
Dishes generally applicable when visiting other institutions;
Gifts/donations related to natural disasters; and
Gifts (tokens) in the form of money or goods in wedding ceremonies, birth ceremonies, aqiqah, baptisms, circumcisions or other religious ceremonies, with a maximum value of IDR. 5,000,000 (Five million Rupiah) in each event.
Delivery of food that can be consumed directly by Company employees in relevant division.
In the event of dining with vendor, where such dining cost is paid by the vendor.
COMPANY OBLIGATIONS & PROCEDURES
Obligations & Procedures include:
Every Bayan Group employee having work and/or business relationship with business partners and/or vendors is required to inform this Gratuity Management and Control Policy to business partners and/or vendors.
Every Bayan Group employee is prohibited from seeking gratuity from business partners and/or vendors for any purpose whatsoever, including seeking or accepting jobs for their family.
Every Bayan Group employee must reject gratuity in a polite manner.
Employees receiving gratuity (which fall in Subjected to Reporting category) are required to convey a written notice (letter of restriction on gratuity) already prepared by the gratuity management and control team to the giver to not deliver gratuity in the future.
Gratuity received which fall into Subject to Reporting category must be handed to the gratuity management and control team no later than 7 calendar days after the employee receives such gratuity.
Such gratuity must be handed over along with filled out information disclosure form to the gratuity management and control team and shall be distributed evenly to all Bayan Group employees by referring to applicable regulations and policies.
Any report that is deemed a breach of this gratuity policy and for further information, please e-mail to : whistleblowing@bayan.com.sg.