Maintenance of the Company’s Records and Data Bribery, Corruption and Fraudulence Political Activity

1 76 76 4 If a person holds a position in political party or political activities, which in future will interfere his duties in the Company, then he is obliged to resign from the Company. 5 Any activity for conveying political aspirations must be done outside working hours and do not use the Company’s attributes. 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 77 77

CHAPTER V MANAGEMENT OF SUBSIDIARIES

A. GENERAL POLICY

1. Establishment of Subsidiary for business development related to business diversification, is undertaken in order to provide added value, strategic value, which at the end supports the main business of the Company. 2. Subsidiary Performance is measured by performance indicators that include at least Financial Aspects, Aspects of Operational and Administrative Aspects. 3. Performance indicators are also based on line of business, economic value added andor strategic value for the Company. 4. Any transaction between the Company and its subsidiaries is implemented based on sound business rules. 5. Each Subsidiary should focus on specific business which becomes its competency and optimize the utilization of its resources.

B. THE APPOINTMENT AND DISMISSAL OF THE MANAGEMENT OF SUBSIDIARIES

1. Appointment of members of the Board of Directors and Board of Commissioners of Subsidiary companies is based on the principles of Good Corporate Governance that are transparency, independence, accountability, responsibility and fairness. 2. Appointment of members of the Board of Directors and Board of Commissioners of subsidiary companies is conducted by the GMOS of the subsidiaries concerned.

C. EQUAL TREATMENT TO SHAREHOLDERS

1. In principle, there is an equal treatment for all shareholders of subsidiaries, for example in the submission of complete and accurate information about Subsidiaries. 1 78 2. Shareholders of subsidiary companies that have shares with the same classification should be treated at par equitable without any exception. 3. Each shareholders of the subsidiary companies have the right to vote in accordance with the classification and number of shares owned. The commitment of PT SUCOFINDO PERSERO towards the Subsidiary company, as follows: 1. Develops cooperation to achieve synergies in every business activities and social events. 2. Prioritizes the product quality according to the quality standard. 3. Increases positive image and good cooperation with business partners and subsidiaries. 4. Supports and implements the Government programs, and legislation particularly that is related to the Companys business. 5. Provides assistance on competent and professional human resources required by the subsidiary companies.