JAKARTA. The International Finance Corporation (IFC), a member of the World Bank Group, and the Financial Services Authority (OJK) signed an agreement to improve corporate governance standards in Indonesia.

Under the agreement, signed on Tuesday, the IFC will advise and support the OJK to develop a corporate governance road map to identify gaps and challenges in Indonesia’s regulatory framework. It will cover areas such as shareholder rights, protection of minority shareholders, corporate board practices, disclosure and transparency.

The two organizations will also finalize an Indonesian corporate governance manual to provide best practice guidelines to practitioners, board members and policymakers.

The IFC established its corporate governance program in Indonesia in June 2012 and has conducted 10 seminars and conferences, such as a women leaders’ forum, training for family businesses and lectures at Indonesian universities. The IFC is also helping private firms improve their corporate governance practices.

“Good corporate governance standards and practices help improve the competitiveness and sustainability of businesses, ultimately fostering economic development,” said Sérgio Pimenta, IFC Director for East Asia and Pacific.

“Our cooperation with Indonesia’s OJK will help strengthen the country’s financial system,” he added. (The Jakarta Post)

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