STATEMENT BY THE BOARD OF DIRECTORS AND BOARD OF COMMISSIONERS

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V. STATEMENT BY THE BOARD OF DIRECTORS AND BOARD OF COMMISSIONERS

1. Information Disclosure submitted to OJK on 11 April 2017 has been completed and complied with the terms stipulated in OJK Regulation Number 38POJK.042014 2. After conducting a thorough review, we believe that all information or material facts required by the investors to approve regarding the transaction, and all information and statement within this information disclosure are correct and not misleading. 3. Issuance of shares through Increase of Capital with Non Pre‐emptive Rights will be to PT Wintermarjaya Lestari, which is the majority shareholder of the Company with shareholdings percentage of 36.77 thirty six point seventy seven percent, and other Affiliated Parties, therefore the transaction will be also an affiliated transaction. Nevertheless by Article 16 of the OJK Regulation Number 38POJK.042016, the Company is exempted from the provisions in Bapepam‐LK regulation Number IX.E.1 concerning Affiliated Transaction and Conflict of Interest on Certain Transaction. 4. Issuance of the new shares through Increase of Capital with Non Pre‐emptive Rights to PT Wintermarjaya Lestari which is the majority shareholder of the Company with shareholding percentage of 36.77 thirty six point seventy seven percent is not a conflict of interest transaction as stipulated in Bapepam‐LK regulation Number IX.E.1 concerning Affiliated Transaction and Conflict of Interest on Certain Transaction 5. In consideration that the equity of the Company as at 31 December 2016 amounted to USD 231,549,443 two hundred thirty one million five hundred forty nine thousand four hundred forty three United States Dollars, and the price of the new issued shares of the Company using the minimum exercise price of the new issued shares amounts to Rp. 258,48 two hundred fifty eight point forty eight Rupiah per share, therefore the total proceeds will be Rp. 103,392,000,000.‐ one hundred three billion three hundred ninety two million Rupiah or equivalent to USD 7,695,159 using the exchange rate of Rp. 13.436 per USD 1 as at 31 December 2016, or amounting to 3.32 three point thirty two percent of the total equity of the Company, with the conclusion that that this transaction offered to the investor is not a material transaction as stipulated in Bapepam‐LK Regulation Number IX.E.2 17

VI. EXTRAORDINARY GENERAL MEETING OF SHAREHOLDERS