Corporate Social Responsibility 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 69 69

13. Health and Safety of Occupational and Environmental

Management of security, safety and healthy working environments HSSE is crucial for the success of the Companys business activities. The Company prioritizes safety and occupational health as well as the environmental preservation which is based on the awareness that it is essential for the Company long-term success. The Company always takes appropriate action to avoid accidents and health problems within the workplace. The Company also concerns about the environmental issues and impact of the entire activities of the Company. The Companys policy in exercising HSSE: a. Build a compliance foundation in line with the prevailing HSE laws and regulations and the environmental protection. b. Prioritize sustainable improvement of various aspects related to the performance of the HSE and environmental conservation. c. Establish and review the objectives, assessment and reporting of the performance of the HSSE and environmental conservation by implementing best practices that suits the local situation. d. Conduct the overcoming of the occurrence of accident that happens in accordance with the applicable procedures and standards and is obliged to have emergency response plan. e. Conduct examination, sudden inspection and periodic evaluation on all means including resources and equipment, in accordance with its authority, to ensure the readiness.

14. Procurement of GoodsServices

The Company in performing its business activities always keeps creating fair competition in accordance with the prevailing legislation by upholding the principles of effective and efficient, open and competitive, transparent, fairno discriminatory and accountable. The development of such procurement system is supported by adequate technology resources, information, organization and human resources. 1 70 70 The principles of procurement of goods and services used by the Company are as follows: 148 a. Efficient, means that the procurement of goods and services should be organised to get optimal and best results in a short time by consuming minimum fundings and capabilities in a reasonable manner and is not based solely on the lowest price; b. Effective, means that procurement of goods and services must comply with the specified requirements and deliver the maximum benefits in accordance with the targets set; c. Competitive, means that procurement of goods and services should be open for providers that meet the requirements and is done through a healthy competition among the Providers of Goods and Services that are equivalent and meet the certain requirementcriteria based on clear and transparent provisions and procedures; d. Transparent, means all provisions and information regarding the procurement of goods and services, including the administrative technical requirement of the procurement, the evaluation procedure, the evaluation results, determination of prospective providers of goods and services, is open for any interested participants; e. Fair and reasonable, means giving equal treatment for all potential qualified providers of goods and services; f. Accountable, means must reach the target and can be accounted for avoiding any potential misuse and irregularities. The Company policy in procurement of goodsservices a. The system of procurement of goods and services that is developed by the Company should; 1 Avoid any potential conflict of interest and affiliated transaction by all Insan SUCOFINDO in the system of procurement of goods and services. 2 Perform the process of procurement of goods and services through the appropriate and transparent mechanisms. b. Establish policies which support the process of procurement of goods and services that can be accounted for specifications in accordance with the needs, on time, competitive prices, administration in accordance with the prevailing requirement. 148 Regulation of the State Minister of SOE No. PER-15MBU2012 Article 2