Stakeholder Management

In 2017, PLN established a BOD Directive Number 0119.P/DIR/2017 concerning Stakeholder Management, provides the guideline of classification, management, strategy, and basic principles of governance, stage and implementation of governance, authority, reporting and evaluation, and budgeting. Our internal stakeholder consists of business units, subsidiaries, affiliated companies, employees, labor unions, and pensionaries, while our external stakeholder is shown in the table below.

Table 1. List of PLN’s Stakeholder

Constitution Central Government Institutions Non-Ministerial
President Coordinating Ministry of Economic Affairs Finance and Development Supervisory Agency (BPKP) Bond Holders
Vice President Coordinating Ministry of Maritime and Investment Affairs National Armed Forces Independent Power Producer (IPP)
People’s Consultative Assembly (MPR) Ministry of Agrarian Affairs and Spatial Planning/National Land Agency National Police Customers, individuals, and communities related to PLN
House of Representatives Council (DPR) Ministry of Energy and Mineral Resources Attorney General Lenders and Investors
Regional Representative Council (DPD) Ministry of Environment and Forestry Corruption Eradication Commission Business Partners and Suppliers
Supreme Court (MA) Ministry of Finance Center of Reporting and Analysis in Financial Transactions Opinion leader
Audit Board (BPK) Ministry of Investment/Investment Coordinating Board Financial Services Authority Electricity associations
Constitutional Court Ministry of National Development Planning Regional Government Mass media
Ministry of Public Works and Housing Regional People’s Representative Council Non-Government Organization
Ministry of State-Owned Enterprises
Ministry of Transportation
Other related ministries

PLN’s stakeholder management includes the following steps:

  1. Stakeholder mapping in the headquarters, center units, implementing units, sub implementing units
  2. Analysis of the stakeholders mapping result to identify and seek potential stakeholders to be engaged
  3. Prepare the stakeholder management plan
  4. Execute the stakeholder management
  5. Evaluate the implementation of stakeholder management

The implementation of stakeholder management is integrated into corporate risk management. PLN’s BOD Directive Number 0196/2019 regarding Governance, Risk Management, and Compliance provides guidelines on risk assessment in which stakeholder identification is an important part of the risk assessment. The risk assessment also includes risk mitigation plans and monitoring concerning stakeholder management. Thus, the implementation of stakeholder management is monitored as part of the risk mitigation monitoring.