Related to Supervisory Function

1 73 the business and perfomance of the Company, in a timely and relevant manner. b Policies and the implementation of career development. c The accounting policies and preparation of financial statements in accordance with generally accepted accounting standards in Indonesia. d Procurement policy and its implementation. e Policies on quality and services as well as the implementation of the policy. f Supervision towards the Board of Directors in implementing the prevailing legislation and agreements with third parties. g Supervision towards the management of SubsidiariesJoint Venture and the implementation of the policy.

d. Related to Nomination and Remuneration of the Member of the Board of Directors

1 Propose the candidate members of the Board of Directors of the Company to the Shareholders. 152 2 Conduct review and supervision to ensure that the Company has a nomination strategy and policy that cover analysis process of the Organization, procedures and criteria for recruitment, selection and promotion. 3 Conduct a review on the appropriate remuneration system for the members of Board of Commissioners and Board of Directors and submit it to the GMOS. 4 Assure that the Company has a transparent remuneration system in the form of salary or honorarium, benefits and amenities that are fixed and incentive that is variable. 5 Propose remuneration of the Board of Directors in accordance with the applicable provisions and performance assessment of the Board of Directors. 6 Review the proposed remuneration and honorarium salaries, allowances and facilities of the Board of Commissioners and Board of Directors along with the related Committees and propose it to GMOS for approval. 152 Decree of the Secretary of the Ministry of SOE Number: SK-16S.MBU2012 Aspect III Paremeter 19.66 73 CHAPTER I INTRODUCTION CHAPTER II BOARD OF DIRECT ORS BOD CHAPTER III BOARD OF COMISSIONERS BOC CHAPTER IV ACTIVITY AMONG COMP ANY’S ORGAN CHAPTER V CLOSING 1 74 7 Propose to the GMOS for approval on performance incentivestantiem of the Board of Commissioners and Board of Directors by considering the performance assessment of the Board of Directors and achievement of the soundness level of the Company. 153 e. Related to Nomination of Members of the Board of Commissioners and Board of Directors of Subsidiary that Provide Significant Contribution to the Company 1 Conduct evaluation and assessment on the selection of candidate members of the Board of Commissioners and Board of Directors of the subsidiaries that has been performed by the Board of Directors of the Company, and then provide a written determination. 2 Provide a written determination as referred to in point 1, within the period not later than 30 thirty days, counted from the date of receipt of the proposed members of the Board of Commissioners and the Board of Directors. 3 In the event that the Board of Commissioners does not give a written determination within the time period as stated in point 2, then the Board of Commissioners is considered approve the proposal of the Company’s Board of Directors. 4 Candidates of Board of Commissioners and Board of Directors of the subsidiaries, who have been approved in writing by the Board of Commissioners, subsequently sign a management contract with the Board of Directors of the Company before being submitted and assigned as a member of the Board of Commissioners and Board of Directors in GMOS of the subsidiaries.

f. Related to Evaluation of the Performance of the Board of

Commissioners and Board of Directors 1 Conduct performance evaluation by establishing the Key Performance Indicator KPI of the Board of Commissioners with self assessment system or other systems which are to be determined in the Board of Commissioners meeting. 154 153 Decree of the Secretary of the Ministry of SOE Number: SK-16S.MBU2012 Aspect III Paremeter 19.68 154 Decree of the Secretary of the Ministry of SOE Number: SK-16S.MBU2012 Aspect III Paremeter 21.17 74