7. The owner should set the objectives of the SWF, appoint the members of its governing body(ies) in accordance with clearly defined procedures, and exercise oversight over the SWF’s operations.
The Government sets out INA’s objectives as detailed in GAPP2.
Law 11 and PP 74 set out the required criteria for selecting the Board of Directors and the Supervisory Board members.
The Supervisory Board is appointed by the President, consisting of the two ministers and three independent members. Their selection adheres to the criteria set out in PP 74, such as having diverse professional backgrounds and expertise in their respective fields. By design, independent members are the majority of the Supervisory Board (2 (two) ex-officio members (Minister of Finance and Minister of SOE) and 3 (three) members coming from professional backgrounds).
Decision making by the Supervisory Board is carried out by deliberation to reach consensus, and the members of the Supervisory Board have no veto rights.
The Supervisory Board has the duty to conduct supervision of the management of INA conducted by the Board of Directors.
The Supervisory Board is not involved in making investment decisions. Considering the Law 11 (Article 166 (15)) and PP 74 (Article 12 (2)), the authority and responsibility of the Supervisory Board are limited to the performance of INA and its Board of Directors, appointment of the Supervisory Board and the Board of Directors, remuneration, appointment of the Board of Directors and advisory boards, changes in capital, and approval of INA’s auditor.
Investment decisions are the authority of the Board of Directors.
Based on the Law 11 (Article 167 (7)) and PP 74 (Article 30 (2)), the Board of Directors carries out the operations.
In carrying out its duties, the Board of Directors is authorized to formulate and determine INA’s policies, implement policies and manage INA operations, propose remuneration, propose work plans and annual budgets along with key performance indicators, develop organizational structure and employee management, and represent INA in and out of court.
Regarding investment decisions, the Board of Directors establishes an Investment Committee, whose task is to provide recommendations to the Board of Directors regarding investment decisions. The Supervisory Board does not take part in making decisions for investment.
The Supervisory Board has regular meetings with the Board of Directors on the running of INA. The Supervisory Board also has the Ethics, Remuneration and Audit committees and regular reports from INA as oversight of the Board of Directors’ performance and proper governance.