Capability Development Program Induction and Capability Development Programs

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