Launch of the Gender Diversity Board Research

Research from the International Finance Corporation (IFC) about the Board of Gender Diversity in ASEAN shows that companies that have more than 30 percent of female board members report an average Return of Assets (ROA) of 3.8 percent, while women who do not have female board members, ROA shows a lower figure of 2.4 percent

In terms of women’s representation on the council, Indonesia is equal to the ASEAN average of 14.9 percent. However, Indonesia lags behind in the number of women who occupy senior management positions, at 18.4 percent, far below the ASEAN average of 25.2 percent.

According to Trisha Suresh, Consultant from The Economics Intelligence Unit, the one-eyed view of women in the world of work must be eliminated. Because the balanced number of women and men in the board of directors has a significant influence, such as better decision-making, stronger monitoring and better strategies, as well as wider attention to environmental, social and government issues. These things will lead the company to increase financial and non-financial performance.

At the regional level, Trisha Suresh explained, women still had to face pressure as housewives, general stereotypes related to the nature and habits of women, and at the corporate level, the board of directors was still male dominated. “To overcome this culture, companies can begin to introduce more formal choice mechanisms for the selection of board membership and give female candidates greater visibility through cross-company networks or directories of female board members throughout the country,” Trisha said.

“An inclusive business that promotes gender equality, decent work and economic growth is the key to achieving sustainable development goals (SDGs),” he said.

The launch of the ASEAN Board on Gender Diversity research was held on June 27, 2019 on the Indonesia Stock Exchange. Present as speakers at the discussion session were Hilda Savitri, Chief Investment Officer Managing Director of PT Indonesia Infrastructure Finance, Lily Puspasari, UN Women Specialist Management Program, and Willy Saelan, PT Unilever Indonesia’s HR Director. This activity was held on IFC initiation in collaboration with IBCWE, UN Women and IGCN.