PT Smartfren Telecom, Tbk.
- Nature of Business :
The Company is a telephone service and wireless data operator in the telecommunication market of Indonesia. With its CDMA technology base, the Company is competing by offering a variety of products to reach a market share that enables the Company to operate as a going concern
- Activity of Business :
b. Provide multimedia products and related
services, including but not limited to direct and indirect sales of voice
services, data/image and mobile commercial services;
c. Develop, lease and own a wireless telecommunications
network in 800 MHZ band based exclusively on Code Division Multiple Access (CDMA)
technology, specifically CDMA 2000 1X and 1X EVDO technology;
d. Trading telecommunication goods, equipment
and/or products, including but not limited to import of such telecommunication
goods, equipment and/or products;
e. Distribute and sell telecommunication goods,
equipment and/or products;
f. Provide after sales services for telecommunication
goods, equipment and/or products.
- Stakeholder :
o Jerash Investment Ltd - 15,6%
o United Investments Limited - 10,76%
o Corporate United Investment Limited - 9,76%
o ETrading Securities, PT - 9.22%
o Masyarakat / Public - 55,16%
- Business Function :
- Corporate Governance :
o
Board of Commissioners :
The duties of the Board of
Commissioners (BOC) includes two main parts: supervising the management of the
Company by the Board of Directors and providing advice to the Board of Directors
in terms of the effectivity of the Board of Directors’ decision-making and the
execution of strategies. The duties are explained more comprehensively in the
Company's Articles of Association.
Periodically, the Board of
Commissioners met with the Board of Directors to receive a progress report on
operational activities and the ongoing restructuring. During the year 2010 the
Board of Commissioners has held 3 (three) meetings.
o
Board of Directors :
The Company's Board of Directors
consists of five directors, including the President Director and four
Directors. The Board of Directors (BOD) is responsible for the management of
the Company in compliance with rules and regulations and inline with the
Company's objectives. The Directors represent the Company in all activities of
the BOD, both with internal parties and external parties.
o
Audit Committee :
The Audit Committee participates
in the selection and appointment of the public accountant, reviews the internal
and external audit plans and reports, reports to the Board of Commissioners
issues that are related to the quality and integrity of the Company's financial
reports, identifies issues that require attention of the BOC, responds to
questions of the members of the BOC, and provides independent opinions about
the Company's compliance towards internal procedures, as well as applicable
laws and regulations.
o
Remuneration Committee :
This committee has the duty and
responsibility of defining the amount of remunerations for the commissioners,
directors, Vice Presidents and senior managers. Currently, the function and
role of the Remuneration Committee is fulfilled by the Board of Commissioners, so
that the amount of remunerations for members of the Board of Directors are
stated by the Board of Commissioners, while the honorarium of members of the BOC
are stated in a BOC meetings.
o
Internal Meetings :
The following table presents the
frequency of BOC Meetings, BOD Meetings, and Audit Committee Meetings in 2010
as well as the attendance of each Commissioner, Director, and Audit Committee
Member.
o
Internal Audit :
The main function of the Internal
Audit unit is to review on the effectivity and the feasibility of the Company's
internal control system, particularly to safeguard the assets and the records of
the Company, to ensure the reliability of the financial and operational information,
and the compliance towards the policies and regulations of the Company.
The Internal Audit functions also
ensure the compliance towards existing applicable laws and regulations. Issues
that emerge have to be identified, analyzed and communicated regularly to the
Audit Committee and the Board of Directors. The Internal Auditor also monitors
and updates to ensure that all improvement recommendations have been
implemented. In fulfilling its function, the Internal Audit unit implements risk-based
auditing approach to enhance cost efficiency and strengthen internal control in
the higher risk areas.
o
Internal Control :
In the designing and implementing
the Internal Control System, the Internal Audit unit refers to the standards
developed by COSO (the Committee of Sponsoring Organizations of the Treadway
Commission).
o
Corporate Secretary :
The Corporate Secretary is responsible for the Company's compliance,
ensuring that the Company complies with existing rules and regulations of the
capital market. The Corporate Secretary also manages the distribution of
information to the Company's stakeholders in a timely manner.
·
Process Management Business :
1.
The national telecommunication industry of
Indonesia features many players which shaped a very high competition level in the
sales activities of the Company's products to the customers. To anticipate the
condition, the Company has engaged in a synergy with PT Smart Telecom in the
form of creating the shared brand of “Smartfren”. Other synergies include the
synergy of distribution and marketing activities. From this synergy the Company
expects several benefits, including among others operational cost and capex
efficiency and the acquisition of a larger market share. In addition, Mobile-8
will continuously introduce new innovative products, services or features, with
competitive price levels; also continue the handset bundling program with
various types, both candy bar and qwerty. Furthermore, the Company also continues
variations of the Fren Duo hybrid product in the form of Fren Jos that offers
various bonuses. In the mobile product, the Company has also launched 2
high-speed modems that equal to 3.5G technology to the customers.
2.
The Company's and its subsidiary's financial
instruments are prone to to the risk of interest rates, the risk of foreign
currency exchange rates, the equity risk, the credit risk and the liquidity risk.
The policy of managing these risks has improved significantly by taking into
account several parameters of change and the volatility of financial markets,
both in Indonesia and internationally. The Board of Directors of the Company has
analyzed and approved the risk policy, which comprises risk tolerance in the
strategy of managing risks as has been elaborated in the Notes on the
Consolidated Financial Statements for the period ended 31 December 2010.
3.
Mobile-8 is operating with the CDMA technology
amidst the more popular GSM technology, so that there is the risk of technology
change that may impact the business activities of Mobile-8. Furthermore,
Mobile-8 also faces competition from the ntroduction of the WiMax technology, whose
licenses have been awarded by the Government to several companies. In the
effort to anticipate this development, Mobile-8 continuously follows the
development of the CDMA technology by applying the CDMA 1X EVDO Rev. A
technology, which is equal to 3.5G technology.
source : http://www.smartfren.com and from various source
source : http://www.smartfren.com and from various source
by : Yogi Nur Zakaria - 0610u057
