Ethics of Office of The Board of Directors

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 47 47

8. Performance of the Board of Directors

In order to maintain and improve the effectiveness of the Board of Directors, the Company evaluates the performance of the Board of Directors and Director periodically at least once a year. The evaluation on the Board of Directors’ performance is conducted by the Board of Commissioners and the Shareholders at the time of GMOS. The evaluation system of the Board of Directors’ performance is submitted by GMOS openly to the Director since his appointment in the form of KPI Key Performance Indicators. The Board of Directors evaluation system is developed based on the execution of the duties and responsibilities set forth in the Articles of Association, prevailing legislation, as well as assignments mandated by the GMOS. The results of the performance evaluation of the Board of Directors conducted by the Board of Commissioners is submitted and reported in the GMOS. The results of the performance evaluation is used as one of the basic considerations for the GMOS to reappoint a Director who performs well and in accordance with the needs of the Company as well as one of the basis in developing the remuneration system for the Board of Directors.

F. SUPPORTING ORGAN OF THE BOARD OF DIRECTORS

1. The Corporate Secretary The Corporate Secretary is appointed and dismissed by the President Director based on the internal mechanism of the Company with the approval of the Board of Commissioners. 134 Functions of the Corporate Secretary are to: 135 a. Ensure that the Company complies with regulations related to the requirements of transparency in line with the implementation of the principles of Good Corporate Governance, b. Provide information required by the Board of Directors and Board of Commissioners regularly andor at any time when requested, c. As a liaison liaison officer, and 134 Regulation of the Minister of SOE No. PER-09MBU2012 Article29 Paragraph 3 135 Regulation of the Minister of SOE No. PER-09MBU2012 Article 29 Paragraph 4 1 48 48 d. Administer and keep the corporate documents, including but not limited to the shareholders list, special list and minutes of the meeting of the Board of Directors and minutes of the meeting of the Board of Commissioners and GMOS. 136 The Corporate Secretary shall meet the adequate professional qualifications.

2. Internal Audit Unit IA

The Company establish the internal audit unit which is the Company’s internal control function. 137 The head of Internal audit unit is appointed by the President Director and approved by the Board of Commissioners. 138 Function of Internal Audit is to: 139 a. Evaluate the effectiveness of the implementation of the above internal control, risk management, and corporate governance process, in accordance with the regulations and policies of the Company; b. Examine and assess the efficiency and effectiveness in the areas of finance, operations, human resources, information technology, and other activities.

G. RELATIONSHIP BETWEEN ORGANS OF THE COMPANY

The limited liability company law has given the limitations of the authority of each company organ. Such limitations are intended in order that each organ of the Company may properly execute its functions as set under prevailing legislation and for the interest of the Company. Good relationship among the organs is absolutely necessary to achieve the Company objectives and the interests of the stakeholders with the provisions as follows: 1. Each organ acts properly for the benefit of the Company. 2. Each organ performs together for the achievement of the Company objectives. 136 Law No. 19 Year 2003 137 Law No. 19 Year 2003 Article 67 138 Regulation of the Minister of SOE No. PER-09MBU2012 Article 28 Paragraph 3 139 Regulation of the Minister of SOE No. PER-09MBU2012 Article 28 Paragraph 4