Governance and Regulations' Contemporary Issues

Governance and Regulations’ Contemporary Issues The Corporate Decision in Indonesia: A Result of Corporate Governance Requirements, Earning Management and Audit Reports Tulus Suryanto, Simon Grima,

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Article information: To cite this document: Tulus Suryanto, Simon Grima, "The Corporate Decision in Indonesia: A Result of Corporate Governance Requirements, Earning Management and Audit Reports" In Governance and Regulations’ Contemporary Issues. Published online: 12 Jun 2018; 183-206. Permanent link to this document: https://doi.org/10.1108/S1569-375920180000099009 Downloaded on: 21 June 2018, At: 09:43 (PT) References: this document contains references to 0 other documents. To copy this document: [email protected] The fulltext of this document has been downloaded 2 times since 2018* Access to this document was granted through an Emerald subscription provided by Token:BookSeriesAuthor:643E2582-0CF0-4334-8C11-FF29B7FD90BC:

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The Corporate Decision in Indonesia: A Result of Corporate Governance Requirements, Earning Management and Audit Reports Tulus Suryanto and Simon Grima

Abstract In this chapter we investigated the importance of the Audit Statement of Opinion in the Final Audit Report to ensure good corporate governance and to reduce earnings management and ensure accurately informed corporate decisions. After going through literature and discussing with peers we hypothesized that this does have an effect on all the three processes. A self-administered survey was purposely designed for the study after consulting the literature and referring to established frameworks and consulted with accounting executives. The survey consisted of an introduction page and four sections contained statements relating to each of the following

Governance and Regulations: Contemporary Issues Contemporary Studies in Economic and Financial Analysis, Volume 99, 183–206 Copyright © 2018 by Emerald Publishing Limited All rights of reproduction in any form reserved ISSN: 1569-3759/doi:10.1108/S1569-375920180000099009

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184 TULUS SURYANTO AND SIMON GRIMA

four themes: “earnings management”; “audit statement and report”; “corporate governance”; and “the corporate decision.” For all statements, participants were asked to respond to a five-point Likert items ranging from “strongly disagree” (coded as “1”) to “strongly agree” (coded as “5”).


The research was conducted with a population of 100 accounting managers and financial managers of manufacture companies listed on Bursa Efek Indonesia (BEI) during 2015. To test the hypothesis, we used SPSS (Version 22) to carry out a regression analysis using the F and t tests. It is determined that the three hypotheses were correct and the Audit Statement of Opinion in the Final Audit Report influences corporate governance and earning management reducing deviant behavior and that there is a significant reliance by Indonesians managers/investors on it when taking corporate decision. Keywords: Corporate governance; earning management; audit report; corporate decision; manufacture company; Indonesia

1. Introduction Implementing good corporate governance has a wide effect on the enterprise management system and is expected to minimize fraud or manipulation within the company. Research conducted by Hardiningsih (2010) and Mayangsari (2003) show that the existence of good corporate governance in a company ensures that the company or the management provides reliable information to the public. This in turn can have an impact on the respective stock prices of the company. However, this might have the negative effect of encouraging companies to manipulate accounting results, within the parameters set by accounting standards, to present information that avoids a decline in their company’s stock prices. Guna and Herawaty (2010) and Jao and Pagalung (2011) put forward the argument of information asymmetry conditions between the management (agent) and the owner (principal) and noted that when management failed to achieve the specified profit target, management took advantage of the flexibility allowed by the accounting standards to modify reported earnings when preparing the financial statements. Management tends to choose and apply accounting methods that provide a better picture of the company’s performance. They note further that when managers have more information than shareholders, they will tend to report better performance by using practices

The Corporate Decision in Indonesia

185


that increase their own profits. This is known as “earnings management practices,” and needs to be independently audited and the outcome communicated to management to prevent and minimize moral hazard. The audit report in fact contains a statement explaining the audit process and the integrity of the financial statements. Instigated by the research findings of Astria (2011), wherein they noted the relationship between the corporate decision variable and the audit statement. In this chapter we examine the importance of the audit statement in the audit report and its influence on “corporate governance requirements,” “earnings management,” and the “corporate decision.”

2. Theoretical Review and Development of Hypotheses 2.1. The Audit Statement and Final Audit Report and Corporate Governance In the broad sense corporate governance refers to the control mechanisms, relations, and processes of an organization. It is the way responsibility is delegated and communication is transmitted to the many stakeholders. It is the answer to the what, when, where, why, and how everything within an organization happens. The core purpose of corporate governance is to ensure accurate information is communicated to the interested parties so that informed corporate decisions can be taken. The parties consist of both internal parties such as, for example, boards of directors, employees, and external parties such as, for example, potential investors who are indirectly interested in information on the corporate value. Corporate governance is a process or mechanism that can be set in the policy of the company to ensure that corporate managers conduct activities according to the interests, appetite, and tolerance of the owner of the company. Therefore, the corporate governance requirements play an important role in limiting corporate management deviant behavior. It is one of the mechanisms that can be applied to ensure a good audit statement in the final audit report. Thus, putting in place a governance policy, which clearly details the processes, delegation, communication, and responsibility of all members within the corporation, should ensure that a true and honest picture of the company on which informed decisions needs to be taken by corporate decision takers is drawn up. Moreover, this ensures that auditors present accurate audit statements within their reports.


Based on the above, we hypothesize the following: H1. The Audit Statement of Opinion and the Final Audit Report have an effect on Corporate Governance.


2.2. The Audit Statement and Final Audit Report and Earnings Management Earnings management is the act of influencing the process of accounting and financial reporting to obtain some private gain. Haq et al. (2017), Ningsaptiti (2010), and Rahman, Mohammad, and Jamil (2013) note that earnings management is a management intervention on the financial reporting process with the aim of benefiting the management itself. Schipper (1989) defined earnings management as the process of taking deliberate steps within the constraints of accepted accounting principles to achieve the desired level of reported income. This creates investment misperceptions. In fact, they note that when management fail to achieve the specified profit target, they take advantage of the flexibility allowed in the accounting standards, to modify reported earnings before presenting the final financial statements, applying accounting methods that provide a better picture of performance of the company. These actions have a direct impact on the audit process and on the audit statement within the report. Based on the above, we hypothesize the following: H2. The Audit Statement of Opinion and the Final Audit Report have an effect on Earnings Management. 2.3. The Audit Statement and Final Audit Report and the Corporate Decision The audit report contains the auditor’s statement of opinion on the company’s financial state. Based on the Audit Report and the Audit Statement of Opinion, one can understand whether the financial management function has achieved the optimum value for the company. That is, whether the purpose of the company has been achieved. Audit report statements of opinion can influence the decision of investments by prospective interested external and internal parties. Tempest (1989), Lijftogt et al. (2017), and Schroen and Brenin (2010) find that dividend policy and funding are directly influenced by the investment decisions, which are based on the reported information on the organization. Therefore, the auditor’s report and the statement of opinion have a large influence on these and can have an effect on the funding of an organization and the investment decisions of interested parties.

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Corporate governance regulation

Earnings management

Audit Statement of Opinion and the Final Audit Report

Corporate decision

Fig. 1. Theoretical Framework.


Based on the above, we hypothesize the following: H3. The Audit Statement of Opinion and the Final Audit Report have an effect on corporate decision.

3. Research Methodology For the present study, we purposely designed a self-administered survey, after consulting the literature and referring to established frameworks and consulted with accounting executives. The survey included an introduction page which outlined the objectives of the study and four sections that followed contained statements related to each of the following four themes “earnings management” – wherein participants were posed with five statements; “The Audit Statement and Report” – wherein six statements were posed; “corporate governance requirements” – wherein six statements were posed; and “the corporate decision” – wherein 10 statements were posed. For all statements, participants were asked to respond to a five-point Likert items ranging from “strongly disagree” (coded as “1”) to “strongly agree” (coded as “5”). The survey items pertaining to each theme are presented in Appendix 1. This is in line with Sugiyono (2012) proposal that to determine the dominant direction and intensity of the respondents perception, one should use a Likert scale of between 1 and 5 or 1 and 7. The survey was administered, between March 2016 and April, 2016, to participants, who were sampled from Head Financial and Accounting Managers of 50 manufacturing companies out of 102 (i.e., 49%) listed on the Bursa Efek Indonesia (BEI) as at 2015 (Appendix 2). This resulted in a population of 502 possible participants (i.e., 102 companies with approximately 5 divisions in each company). The participants responded to these questionnaires in writing; 502 questionnaires were administered, with a



25.90% response (103). However, 30 responses were incomplete and unusable. Therefore, the valid response rate was of 19.92% (100). As noted from previous research conducted in Indonesia focusing on auditors, Finance and Accounting Managers, at most, produced a response rate between 18% and 30% (Budiyanto, Nasir, & Januarti, 2005). Moreover, the minimum sample size requirement to enable the use of regression analysis according to Hair, Black, Babin, Anderson, and Tatham (1998) is 30. Based on these, a sample size of (100) meets the required criteria for validation of the sample size. The quality of data generated from the use of research instruments is evaluated through reliability and validity tests to verify the consistency and accuracy of data collected using research instruments. There were two procedures performed to check reliability and validity, namely, internal consistency test on the respondent’s answers and the test of construct validity by means of correlation between the score of each item (Hair et al., 1998). The total score description of the two data quality tests are as follows: 1. Internal consistency test (reliability) was determined by coefficient of Cronbach alpha. A construct or instrument was reliable if it gives a Cronbach alpha value above 0.60 (Hair et al., 1998). 2. The homogeneity test of data (validity) using Pearson correlation test. If the result was significant, then the data are said to be valid. 3. The normality test aimed at testing whether the regression model, intruder, or residual variable has a normal distribution. The t- and F-tests assume that the residual values follow the normal distribution. If this assumption is violated, then the statistical test becomes invalid for a small sample size. One of the statistical tests that can be used to test the residual normality is Kolmogorov–Smirnov non-parametric statistical test (K–S). 4. The multicollinearity test aimed to test whether there is a correlation between independent variables in the regression model (Umar, 2000). This test can evaluate the value of VIF and tolerance. The guideline used for a multicollinearity-free regression model is the VIF value of all independent variables below 10 and tolerance values above 0.1 (Hair et al., 1998). 5. Heteroscedasticity test has been done to test whether in the regression model there is a variant inequality of the residual of one observation to another observation. If the variant of the other residual observations remains, then it is called homocedasticity. A good regression model is homocedasticity or not being heterokedastisitas (Umar, 2000). To detect whether or not there is heterokedastisitas one needs to look for the presence or absence of certain patterns (wavy, widened, and narrowed) on the graph plot (scatterplot) between predictor value of variables associated with residual.

189


To test H1 and H2 we used the F-test with the purpose to evaluate simultant influence of the independent variable (X) to dependent variable (Y). We then tested H3 using the t-test. Partial test (t-test) has been used to evaluate the partial influence of independent variable (X) to dependent variable (Y).

4. Analysis and Discussion


4.1. Respondents’ Profile The respondents’ profile can be seen in Tables 1–2. Table 1. Details of Returns and Returns of Questionnaires. Information

Amount

Total administered questionnaires Questionnaires not returned Total returned questionnaires Total unused questionnaires Total questionnaires used Total questionnaires incorporated Rate of return of a usable questionnaire (response rate) 100/502 × 100%

502 (372) 130 (30) 100 100 19.92%

Source: Primary data processed 2017.

Table 2. Profile of Respondents. Information Gender Men Women Education S1 S2 S3 Tenure Less than 5 years More than 5 years Position Accounting manager Financial manager Source: Primary data processed 2017.

Number of People

Percentage

75 25

75 25

56 36 8

56 36 8

46 54

46 54

41 59

41 59


4.2. Normality Test Results from the normality test showed that each variable has a value of KS well above 0.05 indicating that all variables were normally distributed (Table 3). For corporate governance (CGR) variable (0.356), earnings management (0.184), Audit Statement and Report (0.234), and corporate decision (0.266).


4.3. Data Quality Test 4.3.1. Validity Test The reliability testing and data validity results show that the level of consistency and accuracy was good. In the reliability test, the internal consistency of Cronbach’s alpha coefficient did not show any coefficient with less than the minimum value of 0.60. Pearson correlation showed a positive correlation and significant level at level 0.01 and 0.05. These results show that the questions that measure the research variables were valid. Reliability test results and validity are presented in Tables 4 and 5. Table 3. Normality Test Results. One-Sample Kolmogorov–Smirnov Test. Total Corporate Governance N Normal parametersa,b Most extreme differences Kolmogorov– Smirnov Z Asymp. Sig. (2-tailed)

Mean Std. deviation Absolute Positive Negative

Total Total Audit Earnings Statement and Management Report

Total Corporate Decision

100 16.9700 4.64813 0.093 0.089 −0.093 0.928

100 14.9900 3.21768 0.109 0.077 −0.109 1.092

100 18.6200 4.04465 0.104 0.057 −0.104 1.035

100 19.0400 3.65955 0.100 0.081 −0.100 1.004

0.356

0.184

0.234

0.266

Sources: Primary data processed 2017. Notes: aTest distribution was normal. b Calculated from data.

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Table 4. Result of Validity Test. No. 1 2 3 4

Variable

Correlation

Significance

Information

Corporate governance Earnings management Audit statement and report Corporate decision

0.759–0.833 0.691–0.792 0.769–0.834 0.719–0.834

0.01 0.01 0.01 0.01

Valid Valid Valid Valid


Table 5. Reliability Test. Downloaded by Simon Grima At 09:43 21 June 2018 (PT)

No. 1 2 3 4

Variable Corporate governance Earnings management Audit statement and report Corporate decision

Cronbach Alpha

Information

0.869 0.801 0.863 0.861

Reliable Reliable Reliable Reliable


4.4. Classic Assumption Test 4.4.1. Multicollinearity Test See Table 6. 4.4.2. Heteroscedasticity Test The scatterplot graph (Fig. 2) showed dots spreading randomly and scattered both above and below the number “0” on the “Y ” axis. It can therefore be concluded that there was no heteroscedasticity in the regression model, so it is feasible to use the regression model. 4.5. Hypothesis Testing 4.5.1. The F-Test We used the F-test with an error rate of (α) = 0.05, and an F calculated value of 29.843. The value of F in the tables resulted a value of (101.055). Therefore, since the value of F arithmetic is greater than F in the table, we can deduce that, overall the variables of corporate governance and earnings management have a significant influence on the Audit Statement of Opinion and the Final Audit Report (Table 7). Fig. 3 shows that the value of F arithmetic > F table value or resides in the rejection area Ho; showing that the variables of the corporate governance


Table 6. Multicollinearity Test Results. Unstandardized Coefficients Model 1 Constant Total corporate governance Total earnings management Total audit statement and report

Standardized Coefficients

Collinearity Statistics

B

Std. Error

Beta

Tolerance

VIF

19.437 0.199 −0.131 −0.097

1.823 0.119 0.234 0.160

0.252 −0.115 −0.107

0.445 0.239 0.324

2.246 4.186 3.084

Dependent variable: Total corporate governance Regression Studentized Residual



3 2 1 0 −1 −2 −3 −2

−1 0 1 2 Regression Standardized Predicted Value

3

Fig. 2. Scatterplot.

Table 7. F-Test Result. ANOVAa Model 1 Regression Residual Total

Sum of Squares

DF

Mean Square

F

Sig.

1,094.343 525.217 1,619.560

2 97 99

547.172 5.415

101.055

0.000b

Sources: Primary data processed 2017. Notes: aDependent variable: Total audit statement and report. b Predictors: Constant, total earnings management, and total corporate governance requirement.

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Rejection area H0 Acception area H0 Ftabel = 101,005

Fhitung = 29,843

Fig. 3. Hypothesis Testing Curve with F-Test.

and earnings management have significant influence on the Audit Statement of Opinion and the Final Audit Report. This means that the Audit Statement of Opinion and the Final Audit Report will influence the organization to ensure good corporate governance and ensure that earnings management is reduced and that H1 and H2 can be accepted. 4.5.2. t-Test To determine whether the Audit Statement of Opinion and the Final Audit Report influence the corporate decision variable, we used the (t) test. In our analysis we used an error rate of (α) = 0.05 and degree of freedom (n−k) and a (t) table value equal to 1.960. We obtained a t value of (2.006) and a t arithmetic variable of (11,365). Since the value of t arithmetic for the Audit Statement of Opinion and Final Audit Report variable was greater than the value of t table (t-test > t table value), then we can deduce that the partial variable Audit Statement of Opinion and Final Audit Report have a significant effect on the corporate decision (Table 8 and Fig. 4). Based on the t-test results the H3, which states that Audit Statement of Opinion and Final Audit Report affect the corporate decision can be accepted. 4.6. Implications and Discussion The results of this study are consistent with the findings of Hardiningsih (2010) and Cornett et al. (2006), who found that corporate governance


Table 8. t-Test Results. Coefficientsa Unstandardized Coefficients Model


1

B

(Constant) Total Audit Statement of Opinion and the Final Audit Report

19.770 0.039

Std. Error 1.739 0.091

Standardized Coefficients Beta

t

0.043

11.365 0.429

Sig. 0.000 0.669

Sources: Primary data processed 2017. Note: aDependent variable: total_corporate decision. tx1 = 11,365

Accept H0 Reject H0

Reject H0 ttabel = –2,006

0

ttabel = 2,006

Fig. 4. Testing Curve with t-Test.

mechanisms can reduce the manager’s impetus to earnings management, so that the reported financial statements reflect the actual situation and impact the audit process. Corporate governance, which includes a range of relationships between company management, the board of commissioners, shareholders, and other stakeholders, is one of the key elements to improve economic efficiency. It could provide a structure that facilitates the determination of the objectives of a company and can be used as a means of determining performance and monitoring techniques (Bebchuk, Fried, & John M. Olin Center for Law and Economics, and Business, 2001; Core, Holthausen, & Larcker, 1999; Tricker & Tricker, 2015). In fact, they found that corporate governance requirements posed by regulations or policy on companies limited the deviant behavior by company management. Moreover, they noted that the control of a company’s deviant management behavior has a positive effect on the work process of the company and audit statement and findings. These results were also consistent with the findings of Wibisono (2004) and Brayshaw and Eldin (1989), who show that earnings management



195

conducted by managers in the financial statements affect the company’s financial performance, which in turn affects the performance of the stock and impacts on the Final Audit Report. They note that the existence of Earnings Management actions affect the audit process and report because of the Earnings Management impact on the integrity of the financial statements (not being a reflection of the truth). Therefore, as per findings, it is important to have a good and clean Audit Statement of Opinion in the Audit Report drawn up by external independent parties. This since showing good standing of the company has a positive impact on the decision taking by management of the company or other interested parties, being both internal or external. The company Audit Report describes the company’s condition over the period and is aimed at maintaining the company’s image in the public eye. The better the corporate image in the eyes of the community the more interested investors. This determines the source of funding of an organization.

5. Conclusion The study presented in this chapter has examined the influence of corporate governance and earnings management on the Audit Statement of Opinion and the Final Audit Report and vice versa, and the subsequent influence of the latter on the corporate decision. Thereby, supporting research by:

• Bebchuk et al. (2001), Core et al. (1999), Tricker and Tricker (2015) shows

that requirements of corporate governance has been able to limit the deviant behavior of corporate management and that the control of the company’s deviant management behavior has a positive effect on the work process of the company and audit result. W • ibisono (2004) who found that earnings management conducted by managers affect the company’s financial performance, which in turn will affect the performance of stock and impact the audit process and report. Moreover, showing the importance of the Audit Statement of Opinion in the Audit Report, in that it results in a better corporate image in the eyes of the community, leading to more parties wanting/interested to invest in the company.



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Schipper, K. (1989). Commentary on earnings management. Accounting Horizons, 3(4), 91–102. Schroen, A. T., & Brenin, D. R. (2010). Breast cancer treatment beliefs and influences among surgeons in areas of scientific uncertainty. American Journal of Surgery, 199(4), 491–499. Retrieved from https://doi.org/10.1016/j.amjsurg.2009.04.005 Sugiyono. (2012). Quantitative research methodology qualitative. Bandung: Alfabeta. Retrieved from https://doi.org/10.1017/CBO9781107415324.004 Tempest, M. N. (1989). Editing and auditing: A crisis in communication (Gillies Memorial Lecture 1987). British Journal of Plastic Surgery, 42(1), 1–11. Retrieved from http://www. ncbi.nlm.nih.gov/pubmed/2645000 Tricker, R. I. B., & Tricker, R. I. (2015). Corporate governance: Principles, policies, and practices. Oxford: Oxford University Press. Umar, H. (2000). Metodologi Penelitian. Jakarta: Gramedia Pustaka Umum. Wibisono, H. (2004). The earnings management on performance around Seasoned Equity Offerings. Postgraduate Thesis Diponegoro University Indonesia.


Appendix 1: Questionnaire Participants should respond to a five-point Likert items mostly ranging from “strongly disagree” (coded as “1”) to “strongly agree” (coded as “5”). Earnings Management No.


1

2

3

4 5

Question Suppose you are a young executive from a manufacturing company that has gone public. At the end of each year, your company will be closed for 2 weeks for effective maintenance of the company’s equipment. The cost of maintenance is very large and the company always records it as normal operating expense on the grounds that the cost occurs every year. Due to the economic crisis, your company profits this year are lower than the previously announced profit targets. The CEO is concerned that failure to achieve these profit targets will lead to falling stock market prices and corporate bond ratings. This year, to achieve profit targets, the company plans to delay all maintenance in December to March next year. Maintenance costs will remain the same, but earnings this year will increase as there is no cost incurred during December. I support the proposal to postpone maintenance until the following year? The company must disclose the risks it faces in the financial statements, although it may make it harder for the company to survive I will not disclose the information in the financial statements if I think the information will be used by other companies to attack my company Salaries and benefits for management are confidential information that should not be publicly disclosed I will deliberately make mistakes in the financial statements if it is necessary to prevent corporate bankruptcy and maintain the security of my employees’ work

1

2

3

4

5

199


Audit Statement of Opinion and the Final Audit Reports No. 1 2


3

4

5

6

Question

1

2

3

4

5

1

2

3

4

5

Reporting is free from the obligations of others to influence the reported facts The audit report contains objective findings and conclusions of the audit results, as well as constructive recommendations The resulting report must be accurate, complete, objective, convincing, clear, concise, and timely so that the information provided is of maximum benefit The report should be able to express the acknowledgment of a successful achievement or an improvement action that has been carried out by the audit object The report should be able to express the acknowledgment of a successful achievement or an improvement action that has been carried out by the audit object The report discloses matters which are issues that have not been resolved until the end of the audit

Corporate Governance No. 1 2 3 4 5 6

Question Conduct disclosure of any transactions or policies made Conducting disclosures about leadership structures and changes occurring to related parties The existence of access to information that is accurate, relevant and timely Employees have the opportunity to participate fairly and there is a reward and punishment mechanism There is a clear system in regulating agency liability mechanisms Comply with the restrictions, conditions, and laws applicable in performing duties and functions


Corporate Decision No. 1

2


3

4

5 6 7

8

9

10

Question I tend to make investment decisions based on information available in the market without my analysis anymore (narrow framing/mental accounting) I feel very confident with my investment options, even without being supported by the right information (over confidence) I am transacting based on confidential information from insiders who are not yet known to the public even though I know it is against the law (cognitive dissonance) I trade short sales even though I know it’s against the law, when the market conditions are crashing (cognitive dissonance) I ignore all information that I think contradicts my investment choice (confirmation bias) Based on my previous experience buying blue chip stock will be safe because its return is stable (conservatism bias) Although stock market conditions are currently down (bearish) but I believe the return that I will get now will not be much different from my past return (anchoring) I believe that if the price of petroleum increases, the return of the stock as a whole will increase as well (representative heuristic) I’d better invest in long-term instruments (bonds, deposits, etc.) with long-term horizons rather than shares because their returns would be more profitable (availability bias) I like investing in instruments like stocks and bonds because the options are sure, compared to mutual fund investments (ambiguity aversion)

1

2

3

4

5

201


Appendix 2: Manufacture Companies Listed on Bursa Efek Indonesia (BEI) as at 2015


No.

Code

Name

Cement 1 SMCB

Holcim Indonesia

2

Semen Gresik

SMGR

Ceramic, Porcelain, and Glass 3 AMFG Asahimas Flat Glass 4

ARNA

Arwana Citra Mulia

5

MLIA

Mulia Industrindo

6

TOTO

Surya Toto Indonesia

Metals 7 ALKA

Alakasa Industrindo

8

ALMI

9

ANTM

Alumindo Light Metal Industri Aneka Tambang

10

CTBN

Citra Tubindo

11

INAI

12

JKSW

13 14 15

LION LMSH NIKL

Indal Aluminimum Industri Jakarta Kyoei Steel Work Lion Metal Work Lion Mesh Prima Pelat Timah Nusantara

16

PICO

17

PTBA

18

TBMS

19

TINS

Pelangi Indah Canindo Batu Bara Bukit Asam Tembaga Mulia Semanan Timah Persero

Address Ged. Jamsostek North Tower Lt. 15, Jl. Gatot Subroto Kav. 38, Jakarta 12930, tdk ada email The East Building 18th Floor, Jl. Lingkar Mega Kuningan Block E3-2 Kav. I Jakarta 12950 Jl. Ancol IX/5, Ancol Barat, Jakarta, 14430, e: [email protected] Sentra Niaga Puri Indah Blok. T2, No. 24, Kembangan Selatan, Jakarta 11610, e: [email protected] Wisma Mulia Lt. 53, Jl. Jend. Gatot Subroto Kav. 42, Jakarta 12710, tdk ada email Toto Building Jl. Tomang Raya No. 18, Jakarta 11430, e: [email protected] Jl. Pulo Gadung No. 14, Pulo Gadung Industrial Estate, Jakarta Timur 13920, e: [email protected] Maspion Plaza Lt. 15 s.d 17, Jl. Gunung sahari kav. 18, Jakarta, 14420 Gedung Aneka Tambang, Jl. Let. Jend. TB. Simatupang, No. 1, Tanjung Barat, Jakarta, 12530 Wisma Metropolitan I, Jl. Jend. Soedirman Kav. 29, Jakarta 12920 Maspion Plaza 15th-17th floor, Jl. Gunung sahari, Kav. 18, Jakarta 14420 Kawasan Industri Pulo Gadung, Jakarta, 13930 Jl. Raya Bekasi Km. 24.5, Jakarta 13910 Jl. Raya Bekasi Km. 24.5, Jakarta 13910 Ged. Krakatau Steel Lt. 3, Jl. Jend. Gatot Subroto Kav. 54, Jakarta, 12950, info@ latinusa.co.id Jl. Daan Mogot Km 14, No. 700, Jakarta 11840, e: [email protected] Menara Kadin Indonesia Lt. 15, Jl. HR. Rasuna Said Blok X-5, Kav 2 dan 3, Jakarta Jl. Daan Mpgot Km. 15, Desa Semanan, Cengkareng, Banten 11850 Jl. Merdeka Timur No. 15, Jakarta 10110, e: [email protected]

202 TULUS SURYANTO AND SIMON GRIMA (Continued )


No.

Code

Name

Chemicals 20 BRPT

Barito Pasific

21

BUDI

Budi Acid Jaya

22

DPNS

Duta Pertiwi Nusantara

23

ETWA

Eterindo Wahanatama

24

INCI

Intanwijaya Internasional

25

SOBI

26

SRSN

Sorini Agro Asia Corporinco Indo Acidatama

Plastic and Packaging 27 AKKU Aneka Kemasindo Utama 28

AKPI

Argha Karya Prima Industry

29

APLI

Asiaplast Industries

30

BRNA

Berlina

31

DYNA

Dynaplast

32

FPNI

33

IGAR

Titan Kimia Nusantara Kageo Igar Jaya

34

SIAP

Sekawan Inti Pratama

35

SIMA

Siwani Makmur

Address Wisma Barito Pasific Tower B, Lt. 9, Jl. Letjen S. Parman, Kv. 62-63, Jakarta 11410, [email protected] Wisma Budi Lt. 8-9, Jl. HR. Rasuna Said, Kav. 6-C, Jakarta 12940, e: budiacid@centrin. net.id SUDIRMAN Tower 12th floor, Jl. Jenderal Soedirman Kav. 60 jakarta, 12190 e: dpns-id"yahoo.com Jl. Jenderal Soedriman Kav. 21, Jakarta, 12920, e: [email protected] Wisma IWI lt. 5, Jl. Perjuangan, Tomang Tol, Kebon Jeruk, Jakarta 11530, e: contact@ intanwijaya.com Wisma AKR 3th Floor, Jl. Panjang No. 5, Kebon Jeruk, Jakarta 11530 Graha Kencana Lt. 9, Suit A, Jl. Raya Perjuangan No. 88, Kebon Jeruk, jakarta, 11530, e: [email protected] Kawasan Industri Jatake, Jl. Industri III Blok M No. 21, Bitung-Tangerang 15135, Banten, [email protected] Jl. Pahlawan Desa Karang Asem Barat Citeureup 16810, Bogor, Jawa Barat, e: [email protected] Menara Imperium I0th Suite D, Jl.H.R. Rasuna Said Kav. I Kuningan, Jakarta 12980, e: [email protected] Tifa Building 5th Floor, Jl.Kuningan Barat no.26 Jakarta 12710, e:[email protected] Dynaplast Tower 9th & 10th Floor, Jl.M.H.Thamrin Boulevard No.1, Lippo Karawaci 1100, Tangerang 15811, Banten Graha BIP 3rd Floor, Jl. Jend. Gatot Subroto Kav.23 Jakarta 12930, e: [email protected] Jl. Raya Sultan Agung Km. 28,5 Bekasi 17134, Jawa Barat, e: [email protected] Jl. Raya Sidorejo Km. 25 Dusun Patoman, Desa Keboharen, Krian, Sidoharjo 61262, Jawa Timur, e: [email protected] Jl. Teluk Betung No. 38 Jakarta 10310, e: [email protected]

203

The Corporate Decision in Indonesia (Continued ) No.

Code

Name


Fodder/Animal Feed 36 CPIN Charoen Pokphand Indonesia 37 JPFA JAPFA

Address Jl. Ancol VIII No.I Jakarta 14430, e: cpl_jkt@ cp.co.id Wisma Millenia7th Floor, Jl. M.T. Haryono Kav.16 Jakarta 12810, e: headoffice@ japfacomfeed.co.id

Wood and Production 38 SULI Sumalindo Lestari Jaya Menara Bank Danamon 19th Floor, Jl. Prof. Dr. Satrio Kav. E IV/6 Jakarta 12950, e: [email protected] Pulp and Paper 39 FASW Fajar Surya Wisesa Jl. Abdul Muis No. 30, Jakarta 10160 40 INKP Indah Kiat Paper & Wisma Indah Kiat, Gedung B, 2nd Floor, Pulp Jl. Raya Serpong Km.8 Tangerang 15325, Banten 41 KBRI Kertas Basuki Rahmat Jl. Abdul Muis No. 46 Jakarta 10610 Indonesia 42 SPMA Suparma Jl. Sulung Sekolahan No. 6A, PO. BOX. 448, Surabaya 60174 43 TKIM Pabrik Kertas Tjiwi Paza bank Internasional Menara II, 7th Floor, Kimia Jl. MH. Thamrin, N0. 51, Jakarta, 10350 Automotives and Components 44 ASII Astra International 45

AUTO

Astra Otoparts

46

BRAM

Indo Kordsa

47

GDYR

Goodyear Indonesia

48

GJTL

Gajah Tunggal

49

IMAS

50

LPIN

Indomobil Sukses International Multi Prima Sejahtera

51

MASA

Multistrada Arah Sarana

52

NIPS

Nipress

53

SMSM

Selamat Sempurna

AMDI Building, Jl. Raya Motor Raya No. 8 Sunter II, Jakarta 14330 Jl. Raya Pegangsaan Dua Km 2.2 Kelapa Gading, Jakarta 14250, e: auto@component. astra.co.id Jl. Pahlawan Desa Karang Asem Timur Citeureup 16810, Bogor, Jawa Barat Jl. Pemuda No.27 Bogor 16161, Jawa Barat, e: [email protected] Wisma Hayam Wuruk 10th Floor,Jl. Hayam Wuruk No. 8, P.O.Box 4283 Jakarta 11042, Jakarta 10120 Wisma Indomobil I 6th Floor, Jl. Let. Jend. M.T. Haryono Kav.8, Jakarta 13330 Karawaci Office Park Block M No.39-50 Lippo Karawaci- Tangerang 15139, e: hery@0530@ link.net.id Jl. Raya Lemahabang Km. 58,3 Desa Karangsari, Cikarang Timur Bekasi 17550, Jawa Barat Jl. Narogong Raya Km. 26 Cileungsi, Bogor 16820, Jawa Barat, e: [email protected] Wisma ADR, Jl. Pluit Raya I No. 1, jakarat 14440

204 TULUS SURYANTO AND SIMON GRIMA (Continued ) No.

Code

Name

Address


Textile and Garments 54 ADMG Polychem Indonesia

55

ARGO

56

CNTX

57

ERTX

58

ESTI

59

HDTX

60

INDR

61 62 63

KARW MYRX MYTX

64

PAFI

65

PBRX

66

POLY

67 68

RICY SSTM

69

TFCO

70

UNIT

71

UNTX

Footwear 72 BATA 73

BIMA

Wisma 46 Kota BNI 20th Floor, Jl. Jend. Sudirman Kav. I Jakarta 10220, e: [email protected] Argo Pantes Wisma Argo Manunggal 2nd Floor, Jl. Jend. Gatot Subroto No.95, Kav.22 Jakarta Selatan 12930, e: [email protected] Century Textile Summitmas II Building 3rd Floor, Jl. Jend. Industry Sudirman Kav. 61-62 Jakarta 12190, e: [email protected] Eratex Djaya Sentra Bisnis Tanjung Duren Jl. Tanjung Duren Utara Blok C, No. 3B, Jakarta Barat Ever Shine Tex Jl. Negara Km.50 Cijujung Bogor 16710, Jawa Barat, e: [email protected] Panasia Indosyntec Jl. Garuda 153/74 Bandung, West Java, e: [email protected] Indorama Synthetics Graha Irama 17th Floor, Jl. H.R. Rasuna Said Blok. X-I Kav. 1-2 Kuningan, Jakarta 12950, e: [email protected] Karwell Indonesia Jl. Gununng Sahari I No. 48-50, Jakarta 10410 Hanson International Jl. Tomang Raya No. 43 Jakarta 11440 Apac Citra Centertex Graha BIP 6th & 10th Floor, Jl. Jend. Gatot Subroto Kav. 23 Jakarta 12930, e: secretary@ apac.co.id Panasia Filament Inti Jl. Garuda 153/74 Bandung 40184, Jawa Barat, e: [email protected] Pan Brothers Tex Jl. Siliwangi No. 178 Jatiuwung Tangerang 15133, Banten, e: [email protected] Asia Pacific Fiber The East Building 35th Floor, Jl. Lingkar Mega Kuningan Block E3-2 Kav. I Jakarta 12950, e: [email protected] Ricky Putra Globalindo Jl. Sawah Lio II No. 29-37 Jakarta 11250 Sunson Textile Jl. Raya Rancaekek Km. 25.5 Sumedang, Manufacturer Bandung, Jawa Barat Tifico Fiber Indonesia Jl. M.H. Thamrin, Kelurahan Panunggangan Tangerang 15001, Banten Nusantara Inti Corpora Mayapada Tower 10th Floor, Jl. Jend. Sudirman Kav. 28 Jakarta 12920 Unitex Jl. Raya Tajur No. I Sindangrasa, Bogor Timur, Bogor 16145, e: [email protected] Sepatu Bata Primarindo Asia Infrastructure

Jl. RA. Kartini Kav.28, Cilandak Barat Jakarta 12430, e: [email protected] Gedung Dana Pensiun, Bank Mandiri 3A, Jl. Tanjung Karang 3-4A Jakarta 10230, e: [email protected]

205

The Corporate Decision in Indonesia (Continued )


No.

Code

Name

Cables 74 IKBI

Sumi Indo Kabel

75

JECC

Jembo Cable Company

76

KBLI

KMI Wire and Cable

77

KBLM

Kabelindo Murni

Electronics 78 PTSN Food and Drinks 79 ADES

80

AISA

81

AQUA

82

CEKA

83

DAVO

84

DLTA

85

INDF

86

MLBI

87

MYOR

88

ROTI

89

ULTJ

Cigarettes 90 GGRM 91 HMSP

Sat Nusapersada

Address Jl. Jendral Gatot Subroto Km7.8 Desa Pasir Jaya, Kec. Jatiuwung, Tangerang 15135 Mega Glodok Kemayoran Office Tower B 6th Floor, Jl. Angkasa Kav. B-6 Kemayoran Jakarta Pusat Wisma Sudirman 5th Floor, Jl. Jend. Sudirman Kav. 34 Jakarta 10220, e: [email protected] Jl. Rawagirang No. 2, Kawasan Industri Pulogadung PO.Box 1452/Jkt,Jakarta 13930 Jl. Pelita VI No. 99 Batam 29432, e: info@ satnusa.com

Akasha Wira International

Perkantoran Hijau Arkadia Tower C 15th-16th Floor Jl. TB Simatupang Kav. 88 Jakarta 12520 Tiga Pilar Sejahtera Alun Graha Ist Floor, Jl. DR. Supomo No. 233 Food Jakarta Selatan Aqua Golden Cyber Tower II 10th-12th Floor,Jl. Rasuna Mississippi Said Blok X-5, Jakarta 12950, e: yanie. [email protected] Cahaya Kalbar Jl. Industri Selatan 3 Blok GG No. 1 Kawasan Industri Jababeka II Cikarang, Bekasi 17550 Davomas Abadi Jl. Pangeran Jayakarta 117 Blok B35/39 Jakarta 10730 Delta Djakarta Jl. Inspeksi Tarum Barat Desa Setia Darma Tambun, Bekasi Timur 17510, e: [email protected] Indofood Sukses Sudirman Plaza, Indofood Tower 27th Floor, Jl. Makmur Jend. Sudirman Kav. 76-78 Jakarta 12910 Multi Bintang Talavera Office Park 20th Floor, Jl. T.B. Indonesia Simatupang Kav. 22-26 Jakarta 12430 Mayora Indah Mayora Building, Jl. Tomang Raya 21-23 Jakarta 11440, e: [email protected] Nippon Indosari Kawasan Industri Cikarang Blok W 40-41 Corpindo Cikarang Kota - Cikarang Utara Jababeka, Bekasi 17530 Ultra Jaya Milk Industri Jl. Raya Cimareme No. 131, Padalarang, Kabupaten Bandung 40552, Jawa Barat Gudang Garam Hanjaya Mandala Sampurna

Jl. Semampir II/I Kediri 64121 Jawa Timur One Pacific Place 16th-20th Floor, Jl. Jenderal Soedirman Kav. 52-53, Jakarta 12190

206 TULUS SURYANTO AND SIMON GRIMA (Continued ) No.

Code


Pharmaceuticals 92 DVLA

Name Darya Varia Laboratoria

93 94

INAF KAEF

Indofarma Kimia Farma

95

KLBF

Kalbe Farma

96

MERK

Merck

97

PYFA

Pyridam Farma

98

SCPI

Schering - Plough Indonesia

Cosmetics and Household Goods 99 MRAT Mustika Ratu

100

TCID

Mandom Indonesia

101

UNVR

unlever Indonesia

Household Appliances 102 KICI Kedaung Indah Can

Address Talavera Office Park 8-10th Floor, Jl. Letjend. T.B. Simatupang No. 22-26 Jakarta, e: info@ darya-varia.com Jl. Tambak No. 2, jakarta 13150 Jl. Veteran No. 9 Jakarta 10110, e: ipo@ kimiafarma.co.id Kalbe Building, Jl. Letjend. Suprapto Kav. 4, Jakarta 10510 Jl. T.B. Simatupang No. 8 Pasar Rebo, Jakarta 13760 Jl. Kemandoran VIII No. 16 Jakarta 12210, e: [email protected] Wisma BNI 46 27 Floor, Jl. Jend. Sudirman Kav.I, Jakarta 10220 Graha Mustika Ratu PH Floor, Jl. Gatot Subroto Kav. 74-75, Jakarta 12870, e: info@ mustika-ratu.co.id Jl. Yos Sudarso By Pass PO Box. 1072, Jakarta 14010, e: [email protected] Graha Unilever, Jl. Gatot Subroto Kav. 15 Jakarta 12930, e: unvr.indonesia@unilever .com Kp. Poglar, Kedaung, Kali Angke, Jakarta barat 10027