Long-term Business Plan SPECIFIC

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 57 57 d Constraints and problem-solving efforts that have been made. 3 The Companys current position, including market share position and an analysis of the strengths, weaknesses, opportunities and threats SWOT and the results of mapping the markets and products, as well as the strategic issues encountered. 4 The desired condition of the Company in future, includes objective and growth target, strategy and management policies, programs and the annual strategic work plan for 5 five years. 5 Financial projections of the Company, which includes the assumptions used, the investment plan and the source of funding, income projections, projected balance sheet, and cash flow projections each year for 5 five years. 6 Corporate level strategic cooperations of more than 5 five years term. 7 Structuring and development policies of the subsidiaries for the next 5 five years. b. Preparation of the Company long-term business plan RJPP is meant to increase the accountability of the Board of Directors and management in utilizing resources and funds of the Company toward the achievement of results as well as increase of the Company’s valuegrowth and productivity in the long term. The process of drafting and ratification of the Company long-term business plan are as follows: 1 Preparation of the Company long-term business plan includes the process of objective setting and long-term assessment that is oriented toward the future, as well as decision making that maps the Companys current conditions and the expected goal. 2 The formulation of the Company long-term business plan is conducted by the Board of Directors and the management of the Company by combining a top-down and bottom-up approaches 3 Each of party involved in the process of formulation of the Company long-term business plan should be accountable and ensure that all information and data used in the formulation is current and accurate. 1 58 58 4 The process of drafting and ratification of the Company long- term business plan includes: a Preparation by the Board of Directors, carried out by considering the internal and external environments of the Company, conducting analysis of strengths, weaknesses, opportunities, and threats SWOT, considering the input obtained from various functionswork units; b Submission of the draft by the Board of Directors to the Board of Commissioners to obtain clarification, feedback, and recommendations; c The Company long-term business plan which has been approved by the Board of Commissioners is submitted to the shareholders for approval of GMOS; d The Board of Directors is obligated to submit the draft of the Company long-term business plan for the following period, to the shareholders for the GMOS approval, within sixty 60 days before the current Company long-term business plan ends; e Ratification of the Company long-term business plan should be determined no later than 60 sixty days after the complete draft of the Company long-term business plan is received by the Shareholders. c. Implementation and Monitoring of the Company long-term business plan 1 Each working unit submits to the Board of Directors the implementation report of the Company long-term business plan on annual basis. 2 Evaluation report of the implementation of the Company long- term business plan is prepared by the Board of Directors and submitted to the Board of Commissioners and Shareholders on annual basis. 3 The implementation and achievement of the Company long-term business plan should be monitored by the Board of Commissioners. The monitoring result is delivered by the Board of Commissioners in the GMOS as part of the performance assessment of the Board of Directors. 4 Amendment of the Company long-term business plan can be done at any time when deemed crucial if there is a very 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 59 59 significant change in the fundamental parameters with the justification that can be accounted for.

4. Corporate Work Plan and Budget

Work plan and budget of the Company RKAP is the annual elaboration of long-term Business Plans that must be prepared by the Board of Directors. The Companys policy in preparing and implementing the RKAP: a. The Work plan and budget of the Company consists of at least: 144 1 Mission, goals, business strategy, corporate policy and program workactivities; 2 Corporate budget specified for any budget work programs activities; 3 Financial projections of the Company and subsidiaries; 4 Work program of the Board of Commissioners; and 5 Other things that require the GMOS resolution. b. Drafting and Ratification of the Work plan and budget of the Company 1 Preparation of the Work plan and budget of the Company is based on the elaboration of the RJPP for one year, the program includes annual company activities in details. 2 Preparation of the Work plan and budget of the Company is performed by the Board of Directors and the Management by using the combination of top-down and bottom-up approaches. 3 Each party, who is involved in the process of formulation of the Work plan and budget of the Company, should be accountable and ensure that all information and data used in the formulation of the RKAP is current and accurate. 4 The draft of the Work plan and budget of the Company that has been signed by all members of the Board of Directors is submitted to the Board of Commissioners to be reviewed and approved. 145 5 The draft of the Work plan and budget of the Company that has been signed by all members of the Board of Directors and the Board of Commissioners is submitted by the Board of Directors 144 Article of Association of PT SUCOFINDO PERSERO Article 17 Paragraph 1 145 Article of Association of PT SUCOFINDO PERSERO Article 17 Paragraph 2 1 60 60 to the shareholders no later than 60 sixty days prior to the fiscal year to obtain the approval of GMOS, with due regard to the prevailing provisions. 146 6 The Work plan and budget of the Company should be approved by the GMOS no later than 30 thirty days after the fiscal year started. 147 If the draft of Work plan and budget of the Company has not been delivered by the Board of Directors, andor the draft RKAP has not been approved in such period, the Work plan and budget of the Company of the previous fiscal year shall prevail. c. Implementation and Monitoring of the Work plan and budget of the Company 1 Each work unit submits implementation reports of quarterly and annual Work plan and budget of the Company to the Board of Directors. 2 The evaluation report of the implementation of the Work plan and budget of the Company is prepared by the Board of Directors and submitted to the Board of Commissioners and Shareholders on quarterly and yearly basis. 3 The implementation and achievement of the Work plan and budget of the Company should be monitored by the Board of Commissioners. The monitoring result is conveyed by the Board of Commissioners in the GMOS as part of the performance assessment of the Board of Directors. 4 The amendment of the Work plan and budget of the Company can be done every 6 six months after the realisation of the RKAP implementation or at any time when deemed necessary, if there is a very significant change in the fundamental parameters with the justification that can be accounted for.

5. Risk Management

The increase of competition in services business makes the Company be more realize the importance of implementing integrated risk management. The implementation can make the Company becomes stronger in encountering various risks including the extreme risk. 146 Article of Association of PT SUCOFINDO PERSERO Article 17 Paragraph 3 147 Article of Association of PT SUCOFINDO PERSERO Article 17 Paragraph 4