RELATIONSHIP BETWEEN ORGANS OF THE COMPANY

1 CHAPTER I INTRODUCTION CHAPTER II THE PRINCIPLES OF GOOD CORPORATE GOVERNANCE CHAPTER III THE COMPANY ORGANS CHAPTER IV THE COMPANY’S PRINCIPAL POLICY CHAPTER VI MANAGEMENT OF RELATION- SHIP WITH STAKEHOLDERS CHAPTER VII IMPLEMENTATION OF GUIDELINES CHAPTER VIII CLOSING CHAPTER V MANAGEMENT OF SUBSIDIARIES 4 9 3 . E a ch o rg a n s sh a ll m u tu a lly r e sp e ct a n d h o n o r it s r e sp e ct iv e f u n c ti o n a n d ro le . 4 . E a ch o rg a n o f th e C o m p a n y sh a ll a ct i n a cco rd a n ce w it h i ts re sp e ct iv e fu n ct io n s a n d r o le . 1 50 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 51 51

CHAPTER IV THE COMPANY’S PRINCIPAL POLICY

A. GENERAL

1. Business Integrity PT SUCOFINDO PERSERO in conducting various business activities is always based on the legislation in force and good business ethics. To maintain its integrity, PT SUCOFINDO PERSERO requires all Insan SUCOFINDO to conduct their business activities always be based on the Companys values: integrity, customer focus, innovation, cooperation and care. Any action that violates laws or good business ethics will be decisively handled according to the applicable Company policy. The Business Integrity can be conducted by referring to the: a. Corporate culture by emphasizing on the ethical ways, comply with the law, fair competition and supporting the creation of a competitive market, thus avoiding the occurence of conflicts of interest and always prioritize the interests of the Company. b. The achievement of quality, time, and cost targets.

2. The Company’s Accounting Standards

PT SUCOFINDO PERSERO has policies and regulations that guarantee the existence of transaction and good record-keeping, which are applied in accurate and reliable accounting systems. All policies and regulations of the Company related to accounting, refer to and comply with the generally accepted accounting standards PSAK. Fulfillment of such accounting standards also reflects in the presentation of the financial statements of the Company, balance sheet, income statement, cash flow statement, changes in equity report, which are disclosed transparently and fairly, in accordance with the prevailing regulations. 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