Frekuensi dan Kehadiran Rapat

205 PT MATAHARI DEPARTMENT STORE TBK 2016 Annual Report Corporate Data Laporan Keuangan Audit Audited Financial Statements Tanggung Jawab Sosial Perseroan Corporate Social Responsibility Tinjauan Tata Kelola Perseroan Memenuhi kewajiban pengungkapan hasil penelaahan Komite Audit dalam Laporan Tahunan Perseroan, berikut kami sampaikan bahwa: a. Kegiatan usaha Perseroan dijalankan dengan pengendalian internal yang cukup efektif, yang secara terus menerus ditingkatkan kualitasnya, sesuai dengan kebijakan yang digariskan oleh Direksi serta diawasi oleh Dewan Komisaris. b. Laporan keuangan yang telah disusun dan disajikan dengan baik memenuhi prinsip akuntansi yang berlaku umum di Indonesia. c. Perseroan telah mematuhi peraturan perundang- undangan pasar modal dan peraturan lainnya yang berhubungan dengan kegiatan Perseroan. d. Pemilihan Akuntan Publik untuk tahun 2016 direkomendasikan oleh Direksi dengan mempertimbangkan aspek independensi dan kompetensi dan disetujui oleh Dewan Komisaris yang telah menerima wewenang dari pemegang saham dalam Rapat Umum Pemegang Saham yang diselenggarakan pada tanggal 26 Mei 2016. e. Tidak ditemukan adanya potensi penyalahgunaan wewenang atau penyelewengan yang memerlukan perhatian serta pertimbangan dari Dewan Komisaris Perseroan. f. Tidak ditemukan ketidak-patuhan atas resolusi Pemegang Saham atas jumlah dan pembayaran remunerasi tahunan Dewan Komisaris. In the fulillment of its responsibility to disclose its examination results to the Company’s Annual Report, the Audit Committee herewith reports that: a. The Company’s business activities have been conducted under an effective internal control, whose quality has been continually improved in accordance with the policies set by the Board of Directors under the supervision of the Board of Commissioners. b. The inancial statements have been properly prepared and presented in accordance with generally accepted accounting principles in Indonesia. c. The Company has complied with the capital market and other regulations relevant to its activities. d. The appointment of the External Auditors for 2016 has been recommended by the Board of Directors on the basis of their competence and independency, and approved by the Board of Commissioners mandated by the shareholders at the General Shareholders’ Meeting held on May 26, 2016. e. No potential for the abuse of authority or misconduct have been identiied which need the attention and the consideration of the Company’s Board of Commissioners. f. No non-compliance with Shareholders’ resolution guiding the amount and payment of total annual remuneration to the BOC. Tangerang 23 Februari 2017 February 23, 2017 Audit Committee of PT Matahari Department Store Tbk, John Bellis Ketua Chairman Farid Harianto Anggota Member DR. Isnandar R. Ali Anggota Member 206 PT MATAHARI DEPARTMENT STORE TBK Laporan Tahunan 2016 Management Discussion Analysis Tinjauan Bisnis Business Overview Ikhtisar Utama Highlights No. Responsibilities Q1 Q2 Q3 Q4 As Required 1 Review and update the Audit Committee Charter and Responsibilities Calendar annually √ 2 Complete an annual evaluation of the committees performance √ 3 Provide a report in the annual report that includes the Committees review and discussion of matters with management and the Independent Auditor √ 4 Appoint or replace the Independent Auditor and approve the terms on which the Independent Auditor is engaged for the ensuing iscal year √ 5 At least annually, evaluate the Independent Auditors qualiications, performance, and Independence, including that of the lead partner. The evaluation will include obtaining a written report from the independent auditor describing the irms internal quality control procedures, any material issues raised by the most recent public company accounting oversight board inspection, internal quality control review, of the irm or by any inquiry or investigation by governmental or professional authorities within the past ive years, concerning an independent audit or audits carried out by the irm, and any steps taken to deal with those issues and all relationships between independent auditor and the company √ 6 Resolve any disagreements between management and the independent auditor about inancial reporting √ 7 Establish and oversee a policy designating permissible services that the independent auditor may perform for the company, providing for preapproval of those services by the Committee subject to the deminish exceptions permitted under applicable rules, and quarterly review of any services approved by the designated member under the policy and the irms non audit services and related fees √ √ 8 Review the responsibilities, resources, functions and performance of the companys internal audit department √ 9 Review and approve the appointment or change in the internal audit executive √ 10 Ensure receipt from the independent auditor of a formal written statement delineating all relationships between the auditor and the company, consistent with applicable requirements of the public company accounting oversight board regarding the independent auditors communications with the Committee concerning independence, actively engage in a dialogue with the auditor about any disclosed relationships or services that may impact the objectivity and independence of the auditor, and take appropriate action to oversee the independence of the independent auditor √ √ 11 Advise the Board about the Committees determination whether the Committee consists of three or more members who are inancially literate, including at least one member who has inancial sophistication and is a inancial expert √ 12 Inquire of management, the internal audit executive, and the independent auditor about signiicant risks or exposures, review the companys policies for risk assessment and risk management, and assess the steps management has taken to control such risk to the company √ √ √ √ √ 13 Review the Finance management, the independent auditor and the internal audit executive the audit scope and plan, and coordination of audit efforts to ensure completeness of coverage, reduction of redundant efforts, the effective use of audit resources, and the use of independent public accountants other than the appointed auditors of the company √ 14 Review with inance management, the independent auditor and the internal audit executive: a. The companys annual assessment of the effectiveness of its internal controls and the independent auditors attestation √ b. The adequacy of the companys internal control, including computerized information system controls and security √ Kalender 2017 Komite Audit Audit Comitee 2017 Calendar 207 PT MATAHARI DEPARTMENT STORE TBK 2016 Annual Report Corporate Data Laporan Keuangan Audit Audited Financial Statements Tanggung Jawab Sosial Perseroan Corporate Social Responsibility Tinjauan Tata Kelola Perseroan No. Responsibilities Q1 Q2 Q3 Q4 As Required c. Any material weakness or signiicant deiciency in the design or operation of internal control over inancial reporting, and any steps taken to resolve the issue √ d. Any related signiicant indings and recommendations of the independent auditor and internal audit together with managements responses √ √ 15 Review with inance management any signiicant changes to GAAP andor MDS policies or standards √ √ √ √ 16 Review with the Finance Management and the independent auditor at the completion of the annual audit: a. The companys annual inancial statements and related footnotes b. Any signiicant changes required in the independent auditors audit plan √ c. Any serious dificulties or disputes with management encountered during the course of the audit, and managements response √ d. Other matters related to the conduct of the audit, which are to be communicated to the Committee under generally accepted auditing standards √ 17 Review with Finance Management and the independent auditor at least annually the companys critical accounting policies and signiicant judgements and estimates, including any signiicant changes in the companys selection or application of accounting principles and the effect of regulatory and accounting initiatives on the inancial statements of the company √ √ 18 Review policies and procedures with respect to transactions between the company and oficers and directors, or afiliates of oficers or directors, or transactions that are not a normal part of the companys business, and review and approve those related party transactions √ √ 19 Review with Finance Management, the independent auditor and the internal audit executive: √ √ √ √ a. Signiicant indings by the independent auditor and the internal audit executive √ √ √ √ b. Any dificulties encountered in the course of the audit work of the independent auditor or internal audit, including any restrictions on the scope of their work or access to required information √ √ √ √ c. Any changes required in planned scope of the audit plans of the independent auditor or internal audit √ √ √ √ 20 Participate in a telephonic meeting among inance management, the internal audit executive and the independent auditor before each earnings release to review the earnings release and inancial information √ √ √ √ 21 Review with the independent auditor the following: a. Alternative treatments of inancial information within generally accepted accounting principles related to material items that have been discussed with management, ramiications of use of the alternative disclosures and treatments, and the treatment preferred by the independent auditor √ √ √ b. Other material written communications between the independent auditor and management i.e schedule unadjusted differences √ c. Any correspondence with regulators or governmental agencies, and any published reports that raise material issues, concerning the companys inancial statements or accounting policies √ 22 Review with the Legal Director for any regulatory matters that may have a material impact on the inancial statements, related company compliance policies and programs, and report received from regulators √ √ √ √ √ 208 PT MATAHARI DEPARTMENT STORE TBK Laporan Tahunan 2016 Management Discussion Analysis Tinjauan Bisnis Business Overview Ikhtisar Utama Highlights Nomination and Remuneration Committee The Board of Commissioners established the Nomination and Remuneration Committee to support its oversight over the development and implementation of policies on the nomination and remuneration of the Board of Directors, Board of Management and employees. The nomination and remuneration of the Board of Commissioners itself, as well as the criteria and rules for the appointment of members of the Nomination and Remuneration Committee, are discussed and decided by the Board of Commissioners’ Meetings. The Company is compliant with OJK Rule No. 34 POJK.042014, dated December 8, 2014, regarding the Nomination and Remuneration Committee.

a. Structure and Membership

The Company has adjusted the composition of Nomination and Remuneration Committee to comply with OJK Rule No. 34 POJK.042014, dated December 8, 2014, regarding the Nomination and Remuneration Committee. As at 13 August 2016, the Nomination and Remuneration Committee comprises an Independent Commissioner as the chairman, one other member of the Company’s Board of Commissioners, and a Human Resources Manager. No. Responsibilities Q1 Q2 Q3 Q4 As Required 23 Develop, review and oversee procedures for i treatment of complaints received by the company regarding accounting, internal accounting controls, and auditing matters and ii the conidential, anonymous submission of employee concerns regarding accounting or auditing matters √ √ √ √ √ 24 Meet with the independent auditor in executive session to discuss any matters the Committee or the independent auditor believes should be discussed privately with the Audit Committee √ 25 Meet with the internal audit executive in executive session to discuss any matters the Committee or the internal audit executive believes should be discussed privately with the Audit Committee √ √ √ √ √ 26 Meet with inance management in executive session to discuss any matters the Committee or inance management believes should be discussed privately with the Audit Committee √ 27 Set clear hiring policies for the companys hiring of employees or former employees of the independent auditor who are engaged in the companys account, and ensure the policies comply with any regulations applicable to the company √ Komite Nominasi dan Remunerasi Dewan Komisaris membentuk Komite Nominasi dan Remunerasi untuk mendukung pengawasan atas pengembangan dan pelaksanaan kebijakan dalam hal nominasi dan remunerasi Direksi, Tim Manajemen, dan karyawan. Nominasi dan remunerasi dari Dewan Komisaris sendiri, serta kriteria dan aturan pengangkatan anggota Komite Nominasi dan Remunerasi, dibahas dan diputuskan dalam Rapat Dewan Komisaris. Perseroan tunduk terhadap Peraturan OJK No. 34 POJK.042014 tertanggal 8 Desember 2014, tentang Komite Nominasi dan Remunerasi.

a. Struktur dan Keanggotaan

Perseroan telah melakukan perubahan dalam keanggotaan Komite Nominasi dan Remunerasi untuk memenuhi Peraturan OJK No.34 POJK.042014 tanggal 8 Desember 2014 mengenai Komite Nominasi dan Remunerasi. Sejak tanggal 13 Agustus 2016, Komite Nominasi dan Remunerasi terdiri dari seorang Komisaris Independen sebagai ketua komite, seorang anggota Dewan Komisaris Perseroan lain, dan Manajer Sumber Daya Manusia. 209 PT MATAHARI DEPARTMENT STORE TBK 2016 Annual Report Corporate Data Laporan Keuangan Audit Audited Financial Statements Tanggung Jawab Sosial Perseroan Corporate Social Responsibility Tinjauan Tata Kelola Perseroan The current members of the Nomination and Remuneration Committee are as follows: Brief proiles of the Nomination and Remuneration Committee members are to be found on page 333 of this Annual Report.

b. Duties and Responsibilities

As stated in the Nomination and Remuneration Committee Charter dated 1 December 2015, the duties of the Nomination and Remuneration Committee include the following: 1. Related to the Nomination function: a. To carry out the following procedures: 1 Prepare the nomination process of the members of the Board of Directors andor Board of Commissioners; 2 Prepare policies and criteria required for the nomination process of candidates for the Board of Directors andor Board of Commissioners; 3 Assist the Board of Commissioners to evaluate the performance of the Board of Directors andor Board of Commissioners; 4 Prepare competence development programs for members of the Board of Directors andor Board of Commissioners; and 5 Review and propose candidates who meet the requirements as members of the Board of Directors andor Board of Commissioners to the Board of Commissioners for submission to the General Meeting of Shareholders “GMS”. b. To give recommendations to the Board of Commissioners on the following matters: 1 Composition of the members of the Board of Directors andor Board of Commissioners; 2 Policies and criteria which are required for the nomination process; 3 Performance assessment policies with respect to members of the Board of Directors andor Board of Commissioners. c. To assist the Board of Commissioners in assessing the performance of members Anggota Komite Nominasi dan Remunerasi sebagai berikut: Posisi Nama | Name Position Ketua Jonathan L. Parapak Chairman Anggota Sigit Prasetya Member Anggota Jenny Hendra Member Ketua merangkap Komisaris Independen The Chairman is also an Independent Commissioner Proil singkat anggota Komite Nominasi dan Remunerasi dapat ditemukan di halaman 333 Laporan Tahunan ini.

b. Tugas dan Tanggung Jawab

Sebagaimana tercantum pada Piagam Komite Nominasi dan Remunerasi tanggal 1 Desember 2015, tugas dari Komite Nominasi dan Remunerasi mencakup hal berikut: 1. Terkait fungsi Nominasi: a. Menjalankan prosedur berikut: 1 Mempersiapkan proses nominasi anggota Direksi danatau Dewan Komisaris; 2 Mempersiapkan kebijakan dan kriteria yang dibutuhkan untuk proses nominasi calon anggota Direksi danatau Dewan Komisaris; 3 Membantu Dewan Komisaris untuk mengevaluasi kinerja Direksi danatau Dewan Komisaris; 4 Mempersiapkan program pengembangan kompetensi untuk anggota Direksi dan atau Dewan Komisaris; dan 5 Menelaah dan mengajukan calon yang memenuhi persyaratan sebagai anggota Direksi danatau Dewan Komisaris kepada Dewan Komisaris untuk diajukan dalam Rapat Umum Pemegang Saham “RUPS” b. Memberikan rekomendasi kepada Dewan Komisaris mengenai hal-hal berikut: 1 Komposisi anggota Direksi danatau Dewan Komisaris; 2 Kebijakan dan kriteria yang diperlukan untuk proses nominasi; 3 Kebijakan penilaian kinerja terkait anggota Direksi danatau Dewan Komisaris. c. Membantu Dewan Komisaris dalam menilai kinerja anggota Direksi danatau Dewan 210 PT MATAHARI DEPARTMENT STORE TBK Laporan Tahunan 2016 Management Discussion Analysis Tinjauan Bisnis Business Overview Ikhtisar Utama Highlights of the Board of Directors andor Board of Commissioners based on the agreed criteria; d. To give recommendations to the Board of Commissioners on competence development programs for members of the Board of Directors andor Board of Commissioners; and e. To propose candidates who meet requirements as members of the Board of Directors andor Board of Commissioners to the Board of Commissioners for submission to the GMS. 2. Related to the Remuneration process: a. To carry out the following procedures: 1 Prepare the remuneration structure for members of the Board of Directors andor Board of Commissioners; 2 Prepare policies on remuneration for members of the Board of Directors andor Board of Commissioners; 3 Calculate the amount of remuneration for members of the Board of Directors andor Board of Commissioners. b. To give recommendations to the Board of Commissioners on the following matters: 1 Remuneration structure; 2 Remuneration policies; and 3 Amount of remuneration. c. To assist the Board of Commissioners in assessing the conformity between performance and the remuneration received by each member of the Board of Directors andor Board of Commissioners; d. In recommending remuneration policies, the Committee must consider at least the formula based on the performance, market competitiveness and inancial capacity of the Company.

c. Meeting Frequency and Attendance

The Nomination and Remuneration Committee met 3 times in 2016, with an attendance rate of 100. The number of meetings complies with OJK Rule No. 34 POJK.042014, which requires that Nomination and Remuneration Committee meetings shall be held at least every 4 four months. Komisaris berdasarkan kriteria yang telah disepakati; d. Memberi rekomendasi kepada Dewan Komisaris tentang program pengembangan kompetensi bagi anggota Direksi danatau Dewan Komisaris; dan e. Mengusulkan calon yang memenuhi persyaratan sebagai anggota Direksi danatau Dewan Komisaris kepada Dewan Komisaris untuk diajukan kepada RUPS. 2. Berkenaan dengan proses remunerasi a. Melaksanakan prosedur berikut: 1 Mempersiapkan struktur remunerasi bagi anggota Direksi danatau Dewan Komisaris; 2 Mempersiapkan kebijakan remunerasi bagi anggota Direksi danatau Dewan Komisaris; 3 Menghitung jumlah remunerasi bagi anggota Direksi danatau Dewan Komisaris. b. Memberikan rekomendasi kepada Dewan Komisaris sehubungan hal-hal berikut: 1 Struktur remunerasi; 2 Kebijakan remunerasi; dan 3 Jumlah remunerasi. c. Membantu Dewan Komisaris dalam menilai kesesuaian antara kinerja dan remunerasi yang diterima oleh setiap anggota Direksi danatau Dewan Komisaris; d. Dalam merekomendasikan kebijakan remunerasi, Komite mesti mempertimbangkan setidaknya formula yang didasari oleh kinerja, daya saing pasar dan kemampuan keuangan Perseroan.

c. Frekuensi dan Kehadiran Rapat

Komite Nominasi dan Remunerasi bertemu 3 kali pada tahun 2016, dengan tingkat kehadiran mencapai 100. Jumlah Rapat Komite Nominasi dan Remunerasi telah sesuai dengan Peraturan OJK No. 34POJK.042014 yang mengharuskan rapat Komite Nominasi dan Remunerasi diselenggarakan paling kurang satu kali dalam 4 empat bulan. Nama | Name Jumlah Kehadiran | Total Attendance Persentase | Percentage Jonathan L. Parapak 3 100 Sigit Prasetya 3 100 Jenny Hendra 3 100