1. PT Pos Indonesia implemented Good Corporate Governance principles in response to negative financial performance and challenges from technological changes and competition. 2. Key aspects of the GCG implementation included transparency in financial reporting, accountability of directors, protection of shareholder rights, and establishment of monitoring committees. 3. While the GCG implementation improved financial indicators over several years, the changes were internal responses and PT Pos Indonesia still faces external challenges that were not fully addressed through strategic planning.

1. Change Management
PT. Pos Indonesia (Persero)
Anindityo Dwi Putro
Iskandar Muda
I. Driving Force for Change Based on ‘Major Change Drivers’ by John P. Kotter in
Leading Change pg. 19
PT. Pos Indonesia is one Government Owned State II. Company Response
Enterprise with the Public Service Obligation (PSO),
PT. Pos Indonesia is one Government Owned State
which includes its core business areas of service Enterprise that tried to improve themselves and
letters, logistics and financial services. Until now, respond to the challenges it faces. This is part of
the financial condition of PT. Pos Indonesia has government programs in the framework of restructuring
always showed a negative performance. This is SOEs (BUMN) through state-owned BP and Bapepam
then compounded with the rapid changes (2000) with the implementation of Good Corporate
occurring outside the company. From the results, Governance.
statistically postal operators around the world has
Good Corporate Governance is a very popular in past
decreased its market share in terms of volume
ten years. Two main theories related to corporate
over the past decade (1998-2008) from 93% to governance is the stewardship theory and agency
85% for postal mail, and from 30% to 26% for theory (Chinn, 2000; Shaw, 2003). Stewardship theory is
express services and postal parcels . In terms of built upon the philosophical assumptions about human
revenue was a decrease from 93% to 85% for letter nature that is that human beings are intrinsically
post, then from 19% to 16% for express services reliable, able to act with full responsibility, having
and postal parcels. This decline coincided with the integrity and honesty towards others. This is what is
rapid development of technology. In the midst of implied in a fiduciary relationship that required the
an external blow, PT. Post still has the obligations shareholders. In other words, looking at management as
of PSO, which must remain open although the stewardship theory can be trusted to act in the best
interests of the public and stakeholders.
service unprofitable lines. Internal conditions that
bawdy chaos also make the PT. Pos Indonesia is Meanwhile, the agency theory developed
located in a difficult position like a thorn in the by Michael Johnson, the view that the management
flesh is 'sick' but still must be maintained. There is company as "agents" for its shareholders, will act with
no choice but to change to respond to the full awareness of their own, not as the wise and prudent
challenges and opportunities that actually open. and fair to shareholders. In subsequent developments,
the agency theory to get a broader response as seen
better reflect the reality. Various thought on developing
External Drivers Internal Drivers
• Technological Change in • Negative financial performance
corporate governance based on agency theory in which
Telecommunication • Worker welfare condition management conducted with full adherence to various
• Public Service Obligation policy rules and regulations.
• Private company for mail, logistic
and communication services Good corporate governance (GCG) by definition is a
system that regulates and controls the company that
creates value added to all stakeholders (Monks, 2003).
The Globalization of Market and Competition
There are two things that are emphasized in this
concept, first, the importance of shareholder rights to
More Hazard More Opportunity obtain information correctly and on time and, second,
• Low Performance • Market potential the company's obligation to make an accurate
• More Competition • Network opportunity disclosure, timely, transparent to all information on
• Non profit responsibilities corporate performance, ownership , and stakeholders.
There are four main components needed in the concept
Organizational Transformation of good corporate governance, (Kaen, 2003; Shaw,
2003), namely fairness, transparency, accountability,
Internal Reform and responsibility. The four components are important
Dealing with External Treat because the application of good corporate governance
principles consistently proven to improve the quality of

2. financial reporting and also can be obstacles to the c. Conducting an assessment of the work unit
performance engineering activities that resulted in the periodically.
financial statements do not reflect the fundamental
value of the company. The financial statements have provided an overview of
risk management systems, objectives and business
The application of the Good Corporate Governance at strategy, ownership, debt guarantees, planning,
PT Pos Indonesia in 2001, generally the program of this assessment and management of climate risks, the
application are : names of directors and other key jobs. In addition, if
there is a vacant position announced through RUPS. The
1. The design and implementation of a moral system of remuneration of commissioners and directors
movement Clean Transparent Professional (BTP). are also provided in the RUPS.
The purpose and goal of this movement is to build,
establish a new culture to be proud of and Application of the principle of transparency is very
adopted and implemented by all leaders / necessary because it is a source of information for
employees of the company, change and shape the investors, shareholders, creditors and other interested
behavior of leaders and employees of PT. Pos parties in making decisions which will affect the
Indonesia. company's future.
2. Perform independent testing to know whether the 2.Autonomy
company separately through work units have PT. Pos Indonesia using specialist staff in each division
established the principles of Good Corporate or section within the company. The Company is
Governance. managed free from the influence of other parties and
also the company's activities in accordance with Law
3. The existence of firm guidelines for ethical No.12 of 1998 regarding the company. In this case
behavior. emphasized that in carrying out its functions, duties and
responsibilities of commissioners and the managers or
4. Measurement and assessment of the
the parties were given the task in accordance with their
implementation of GCG.
respective divisions. The steps have been taken by the
Here are the step that the implementation of the PT. Pos Indonesia, namely:
Principles of Good Corporate Governance in PT. Pos a. Using experts in each division or section within the
Indonesia: company.
b. Does not involve outside influences that are not in
1.Transparency accordance with the principles of a healthy
PT. Pos Indonesia has adopted the presentation of corporation.
annual financial statements in accordance with c. Trying to avoid conflicts of interest between the
Generally Accepted Accounting Principles (PBAU). In company and directors.
terms of the principle of transparency in the PT. Pos d. Creating an internal policy in accordance with
Indonesia has: company laws and regulations.
3.Accountability
a. Developing the accounting systems and best Accountability is the responsibility for the performance
practices to ensure the quality of financial of their functions and tasks in accordance with the
statement disclosure, but the PT. Pos Indonesia is powers possessed by all organs of the company. In this
still in early stages of the application of case, directors and managers responsible for the
information technology and management successful management of supervision in order to
information system to ensure the best achieve the agreed objectives of shareholders.
performance appraisal and effective decision Commissioner responsible for the success of the
making process. supervision and give an advice to the directors within
the framework of the management company. To
b. Develop the risk management in the company to strengthen the supervisory function of PT. Pos Indonesia
ensure that all risks can be managed at the level of established an audit committee by the board of
time that can be tolerated. commissioners, and using qualified external auditors.
For the effective implementation of GCG, PT. Pos
Indonesia established institutions assigned to monitor,

3. assess and evaluate the implementation of GCG, sustainable manner so that the company stay in
including: business activity. The board of directors should
1. Audit committee established by the board of avoid the abuse of authority in performing his
commissioners. The audit committee reported duties which sometimes are still common. PT. Pos
its duties to the commissioners. The audit Indonesia also set the rules and policies that
committee has performed its duty in contain the threat of sanctions against violations
accordance with the scope of work include: of the implementation of GCG principles, but
a. Develop terms and conditions for an implementation of the sanctions were deemed
independent auditor to conduct an audit of still needs improvement. The forms of the threat
consolidated financial statements. of sanctions depends on the shape of the offenses
b. Overseeing the process of auditing the committed, such as:
consolidated financial statements, to ensure an 1. Administrative punishment to employees
independent auditors in conducting audits to who commit violations related to employee
be objective and independent in accordance discipline.
with the Public Accountants Professional 2. Repertory demands/claims for compensation
Standards (SPAP). for violation of the company to incur losses
2. Board or committee monitoring and evaluation 3. Demands/public legal proceedings against
implementation of GCG which was formed by violations of laws and regulations applicable
directors with its own decree. Board and 5. Fairness
committee reports to directors duties. Duties Fairness is the protection of minority shareholder
and functions namely: interests, justice and equality in fulfilling the rights
of stakeholders from deception, fraud, trafficking
a. supervision of the truth valuation and and abuse by insiders. In this case emphasized for
timeliness of reporting interested parties on the company is protected
b. Process and compile all the results of the from fraud and abuse committed by internal party
assessment in the form of corporate reports company. What has been done, among others:
c. The analysis for the evaluation to improve
the process, outcome and impact 1. Establish firm rules to protect the interests of
shareholders, especially minority shareholders
3. Assessment of GCG at PT. Pos Indonesia also 2. Establish Corporate Conduct or Code of
conducted on a position by: Conduct / Ethics that applies in the PT. Pos
a. The supervision Unit of the Central Internal Indonesia as well as ethical values, morals
organs aspects of corporate and field functions that have guided to protect from the mistakes
in the headquarters company and for the office that come from the inside, self-dealing, and
of the postal business, which in its conflicts of interest including the following:
implementation report directly to chief a. Not committed a disgraceful act
executive to deliver copies to the members of b. Not doing activities collusion, corruption,
the board of directors. nepotism. For actors in the company who saw
b. Internal Audit Unit of the Central Unit in the the evidence of acts that tend to hurt the
ranks of the postal business area concerned, company, is obliged to report to his superior.
which in its implementation report directly to c. Not receiving any gift
the postal business areas concerned with d. Honest
delivering a copy to the chief executive and 3.Define roles and responsibilities of management
board members 4. Naturally, the use of any information material
4. Responsibility and fully disclosed
The seminar was conducted by the management Some of the activities conducted by PT. Pos
company a sound business ethics and universal, Indonesia to support the implementation of GCG,
but less consistently held company in good among others:
company among the company itself or in the
community. 1. Implementation of a continuous and regular GMS
In addition, increased performance and 2. Financial statement audit by independent
productivity still must be improved in a auditors in accordance with applicable provisions

4. 3. The conduct of an independent assessment of
the working units. The assessment was conducted Cash Ratio
79.93%
in the form of questionnaires. Officials and 80%
leaders of the unit conduct independent 75.66%
assessments at least every six months 75% 2003
4. Establish Monitoring and Evaluation Committee 2004
on Implementation of Good Corporate Governance 70.85% 2005
conducting interviews with the respondents who 70%
68.10%
2006
comprised of officials / leadership and co-work unit
level, subordinate / employee and the supervisor of 65%
the officer / head of unit concerned
III. The results of the Corporate Response Total Equity to Total Asset
25% 23.99%
PT. Pos Indonesia has succeeded in improving its 20% 18.79%
financial performance than was always negative to 2003
15% 13.45%
positive. These results can not quickly but after the 10.77%
2004
2005
implementation of GCG run for several years. 10%
2006
5%
ROE
0.58%
0% 0%
-5%
-3.42%
-10%
-15%
2003
IV. Evaluations and Suggestions
2004
-20%
2005
-25%
2006 Implementation of GCG at PT. Pos Indonesia has
-30%
-35%
brought positive changes to improve financial
-32.66%
-40% -37.50%
performance. However, this step is really just a
response to internal challenges, while the external
ROI challenges it has not been resolved. In fact, the
2% changes should be done simultaneously, because
0%
0.13%
the changes that occur due to external factors has
-2%
-0.29%
occurred rapidly and significantly. Based on a study
2003
-4% 2004 of the implementation of GCG in some branch
-6% 2005 office of PT. Pos Indonesia (Dwi.Octaviana. Kinerja
-6.09%
-8%
2006
BUMN Pasca Penerapan GCG; R. Cherrya Angelik.
-10% Fungsi Audit Internal Dalam Meningkatkan GCG
-12%
-10.41%
Studi Kasus pada PT Pos Indonesia Bandung), we
see the process of internal change that occurs in
ROA this highly vulnerable to return to initial
2% conditions. This is due to internal changes and the
0%
0.06% implementation of GCG was more because of
-0.82% 2003 regulation or law that requires the implementation
-2%
2004 of GCG in the state, not based on the awareness or
-4%
2005
sense of urgency that requires change. When
2006
-6%
-4.39%
referring to the change according to Kotter's 8
steps:
-8% -7.04%

5. V. Daftar Pustaka
Sedarmayanti, (2007), Good Governance
(Kepemerintahan yang Baik) Dalam Rangka
Otonomi Daerah, Penerbit CV. Mandar Maju, Bandung.
Widilestariningtyas (2000), Prinsip-prinsip Good
Corporate Governance, Penerbit CV. Mandar
Maju, Bandung.
Octaviana. Dwi, (2009), KINERJA BUMN PASCA
PENERAPAN GOOD CORPORATE GOVERNANCE.
(STUDI PADA PT POS INDONESIA BANDAR LAMPUNG).
Angelik, R. Cherrya. (2009), fungsi audit internal dalam
meningkatkan GCG (studi kasus pada PT pos indonesia
Bandung).
Source John P. Kotter. Leading Change. 1996
The process of internal change is not through the
established a sense of urgency and not be closed by
making a new culture as a result of the change. Changes
that are not through these stages are very vulnerable to
survive. Because according to Kotter, the culture is very
strong to control the workings of the organization in the
future and ensure the condition does not happen again
(Kotter: Leading Change,Ch10).
On the other hand, PT. Pos Indonesia still needs a
strategy to respond the changing challenges and
opportunities that come from outside. PT. Pos Indonesia
should make a suitable mapping strategy based on
opportunities and threats and strengths and
weaknesses they have. One of the advantages which
would be difficult to be followed by another
organization that is a wide range covers the entire
territory of Indonesia. PT. Pos Indonesia should take
advantage of this strategic advantage well to meet the
challenges and threats faced today.