The Company’s Accounting Standards

1 52 52 The application of Financial Accounting and Supervision System a. Automation of routine and updated information of for reviewanalysis on the cost control. b. Control of operating cost in the production sector with due regard to risk factors. c. Optimalization of the resources utilization by treating employees as valued partners of the Company. d. Monitoring system in the areas of financial audits and the audit operation by applying 3E principle Economical, Efficient and Effective and 2K Obedience and Financial. e. Improve the Company accounting policies in accordance with the prevailing financial accounting standards.

3. Internal Control System

The internal control system is enforced to ensure the fairness of the Company financial information that is based on objectivity, efficiency and economical principles as well as adherence to the prevailing legislation and Company regulations. PT SUCOFINDO PERSERO establishes and maintains an internal control system to secure assets and investments with reference to the 3E Economical, Efficient and Effective and 2K Obedience and Financial principles that include monitoring, measurement, evaluation, follow-up of the evaluation results and monitoring of the follow-up results. The internal control system includes the followings: a. Internal control environment within the Company, which is implemented with discipline and structured, consisting of: 1 Integrity, ethical values and employee competency. 2 Philosophy and management style. 3 Management style used in performing authority and responsibility 4 Organization and development of human resource 5 Attention and guidance performed by the Board of Directors. b. Review on the business risk management risk assessment, which is a process for identifying, analyzing, assessing relevant risk management. c. Control activities in the Company are actions performed in controlling process on the Company activities at each level and unit in 1 C HA P T E R I IN T R O D U C T IO N C HA P T E R I I T H E PR IN C IPL ES O F G O O D C O R PO R A T E G O VER N A N C E C HA P T E R I I I T H E C O MP A N Y O R G A N S C HA P T E R I V T H E C O MP A N Y’ S PR IN C IP A L PO L IC Y C HA P T E R V I MA N A G EMEN T O F R EL A T IO N - SH IP W IT H ST A K EH O L D ER S C HA P T E R V I I IMPL EMEN T A T IO N O F G U ID EL IN ES C HA P T E R V I I I C L O SI N G C HA P T E R V MA N A G EMEN T O F SU B SI D IA R IES 53 53 organization structure of the Company, which includes among others: authority, authorization, verification, reconciliation, performance assessment, segregation of duties and security of the Company’s assets. d. Information and communication system is a process of presentation of the report on operational and financial activities, and obedience and adherence to provisions of legislation by the Company. e. Monitoring, is an evaluation process of the quality of internal control system including internal audit function on every level and unit within the structure of the Company, in order that the control can be performed optimallly. Monitoring of the internal control system, includes: a. Financial control. b. Operational control. c. Risk management. Monitoring of control systems in the implementation of Good Corporate Government is conducted by: a. Head of the respective section and unit as the implementation of the close supervision. b. Strategic management division or work units which have the function and responsibility to manage, implement, evaluate, and develop the corporate governance framework effictively and efficiently. c. Internal Audit Unit Function that performs internal control in the form of implementation of internal control, risk management, and corporate governance process in accordance with the legislation and Company policy, and also monitor the follow-up implementation. d. Stakeholders as the implementation of community supervision and the Company is open for information or complaints and claims received from the communities for complete follow-up.

4. External Auditor

PT SUCOFINDO PERSERO considers the external auditor as partner that performs an audit and delivers input on finance activity and presentation of financial reports. Therefore the external auditor is expected to evaluate the implementation of management function both in operational and financial activities.