Policy Number: A R K-POL-007/01/2023    |    Revision: 01    |    Effective Date: 1 January 2023.

Chapter I — General Provisions

Article 1  Purpose

This Policy is established to:

  • Prevent, identify, and manage conflict of interest situations that may compromise A R K’s objectivity, independence, and integrity.
  • Protect A R K from reputational, legal, and financial risks arising from unmanaged conflicts of interest.
  • Ensure that every decision — particularly in research, advocacy, recruitment, procurement, and fund allocation — is made in the best interests of A R K and the communities it serves, not in personal or group interests.
  • Provide a disclosure and conflict of interest management mechanism.

Article2 Scope

This Policy applies to:

  • All A R K personnel (as defined in Article 13).
  • Partners, consultants, and third parties working with A R K (through clauses in cooperation agreements).
  • Immediate family members (spouse, children, parents, siblings) of A R K personnel, insofar as they are involved in transactions with A R K.

Article 3  Guiding Principles

  • Transparency: Any potential conflict of interest must be disclosed openly, prior to any decision being made.
  • Objectivity: A R K’s decisions must be grounded in evidence and organizational interests, not personal influence.
  • Prevention: A R K will proactively avoid situations that may give rise to conflicts of interest.
  • Management: If a conflict cannot be avoided, it must be managed through a clear mechanism (e.g., recusal from decision-making).

ChapterII — Definitions And Types Of Conflict Of Interest

Article4 Definition

A conflict of interest is a situation in which an individual’s personal, financial, or affiliative interests conflict or potentially conflict with the interests of A R K, thereby affecting their objectivity in carrying out their duties.

Article 5  Types Of Conflict Of Interest

Direct Financial Conflict:

  • Holding shares, ownership stakes, or a position in a company that is a partner, competitor, or supplier of A R K.
  • Receiving compensation (money, goods, discounts) from parties working with ARK, beyond agreed salary/honorarium.
  • Using A R K assets or funds for personal gain.

Personal Relationship Conflict:

  • Involving immediate family members (spouse, children, parents, siblings) in recruitment, promotion, procurement, or beneficiary selection processes.
  • Romantic or close personal relationships with parties being supervised or audited.

Dual Role Conflict:

  • Serving as a board member, commissioner, or staff of another organization with competing or conflicting interests with A R K.
  • Acting as a consultant for or receiving payment from a party currently being negotiated with or audited by A R K.

Research Conflict of Interest:

  • Conducting research funded by a party with commercial or political interests in the research outcomes.
  • Failing to disclose funding sources that may influence research results.
  • Using A R K data for personal publications without authorization.

Advocacy Conflict:

  • Representing personal or group interests that contradict A R K’s position.
  • Receiving funds from a party attempting to influence the direction of A R K’s advocacy without disclosure.

Chapter III — Disclosure Obligations

Article 6  Mandatory Disclosure

All A R K personnel are required to disclose in writing any potential conflict of interest, whether actual or perceived, within:

  • No later than 7 days after becoming aware or being expected to be aware of a potential conflict.
  • Before any meeting or decision-making process related to the matter.

Article 7  Disclosure Method

Disclosure shall be submitted through:

  • The Conflict of Interest Disclosure Form (appended to this Policy), submitted to the A R K Executive Director.
  • Or declared directly in the relevant meeting and subsequently confirmed in writing.
  • For ongoing conflicts (e.g., shareholding), disclosure is made annually in the Annual Declaration.

Article8  Annual Declaration

All A R K personnel are required to sign a Conflict of Interest-Free Declaration at the start of each year (January), covering:

  • A list of affiliations (positions in other organizations).
  • A list of shareholding in relevant companies.
  • A list of family relationships with employees of A R K partners/suppliers.
  • A list of externally funded research.

Declarations are kept by the HR Manager and are confidential, but are subject to audit.

Chapter IV — Managing Conflicts Of Interest

Article 9  Management Principles

Once a conflict of interest has been disclosed, A R K will manage it through one of the following approaches (from least to most restrictive):

  • Full disclosure in a meeting/discussion, but the individual may continue to participate if it does not affect their objectivity.
  • Withdrawal from decision-making (non-attendance, non-input, non-vote) for directly related issues.
  • Recusal: The individual is prohibited from participating in all stages (planning, implementation, supervision, evaluation) of a specific activity.
  • Task reassignment: If the conflict is structural, A R K may transfer duties to another party.
  • Termination of the relationship: If the conflict cannot be managed (e.g., bribery, undisclosed conflict), sanctions up to and including dismissal may be applied.

Article 10  Handling For Board Members And The Executive Director

If a conflict of interest involves a Board member or the Executive Director:

  • The individual is required to disclose and must not be present during deliberation of the related issue.
  • The decision is made by other members without a conflict.
  • This is recorded in the minutes of the meeting.

Article 11  Handling For Non-Board Staff

If a conflict involves non-Board staff:

  • The staff member reports to their direct supervisor.
  • The supervisor, together with the HR Manager, determines the action (recusal, task reassignment, etc.).
  • The staff member continues to receive full salary throughout the process.

Chapter V — Prohibitions And Sanctions

Article 12  Prohibitions

A R K personnel are prohibited from:

  • Concealing a known potential conflict of interest.
  • Using their position or authority to benefit themselves, family members, or close associates.
  • Accepting bribes, gratuities, or gifts (beyond a reasonable value of ≤ IDR 200,000) from parties working with A R K.
  • Using confidential A R K information for personal or family financial gain (insider information).
  • Involving family members in recruitment, promotion, or procurement processes without disclosure and approval.

Article 13  Sanctions

Violations of this Policy are subject to sanctions in accordance with A R K’s PKO:

  • Minor (failure to disclose without causing harm): verbal reprimand and refresher training.
  • Moderate (concealing a conflict with minor impact, accepting a gratuity below IDR 1 million): Second Written Warning (SP2) and 1–2 weeks suspension (50% salary).
  • Serious (concealing a conflict that causes financial or reputational harm to A R K, bribery, corruption, nepotism): immediate termination without severance pay (unless required by law) and referral to law enforcement authorities.

Chapter VI — Exemptions And Waivers

Article 14  Exemptions

The following shall not constitute a conflict of interest if disclosed and approved:

  • Membership in a professional association or non-competing nonprofit organization.
  • Receiving honoraria for academic activities (teaching, seminars) unrelated to A R K duties and not undertaken during working hours.
  • Family relationships where the family member is not directly involved in relevant decision-making (e.g., a child employed by a partner not involved in an A R K project).

Article 15  Waivers

In specific circumstances (e.g., where an individual is the only available expert in a particular field), the Executive Director may grant a written waiver permitting an individual with a conflict to remain involved, subject to the following conditions:

  • The conflict has been fully disclosed.
  • Additional oversight is applied (e.g., decisions must be approved by an independent party).
  • The waiver is documented and reported in a Board meeting.

Chapter VII — Records And Reporting

Article 16  Records

  • All conflict of interest disclosures are recorded in the Conflict of Interest Register maintained by the HR Manager.
  • The Register includes: name, date, type of conflict, management action, and final outcome.
  • The Register is confidential but accessible to the Executive Director, Supervisory Board, and external auditors.

Article 17  Annual Reporting

The A R K Executive Director is required to present an anonymized summary of conflict of interest cases handled (without naming individuals) in A R K’s Annual Report, as a demonstration of institutional transparency.

Chapter VIII — Definitions

Article 18  Definition Of A R K Personnel

“A R K personnel” in this Policy refers to all parties with a formal or functional relationship with Yayasan Amerta Reksa Kayana, including Foundation Board members, permanent and contract staff, interns and volunteers, consultants and working partners, and third parties officially representing A R K.

Article 19  Operational Definitions

  • Immediate Family: Spouse, children (biological/step/adopted), parents (biological/in-law), and siblings.
  • Recusal: The act of withdrawing from a decision-making process due to a conflict of interest.
  • Gratuity: Any benefit in the form of money, goods, discounts, gifts, travel, or other facilities that may affect objectivity.
  • Nepotism: The tendency to favor family members or close associates without regard to qualifications.

Chapter IX — Review And Validity

Article 20  Review

This Policy shall be reviewed every two years or at any time deemed necessary.

Article 21  Validity

This Policy is effective from the date of enactment.

Established in: JAKARTA
Date: 1 January 2023.

(Signature)


Executive Director, A R K Foundation

(Signature)


Board Chairperson, A R K Foundation