Acquisition DebtCapital Restructuring NON-CURRENT LIABILITY

PT KERETA API INDONESIA PERSERO ANNUAL REPORT 2013 205 Business Prospects and Corporate Strategy Analysis and Managerial Discussion Supporting Business Report Selama tahun 2013 dan 2012, tidak terdapat transaksi dengan pihak berelasi baik yang langsung atau tidak langsung berhubungan dengan kegiatan usaha PT KAI Persero, yang mengandung benturan kepentingan. Selama tahun 2013 dan 2012, tidak terdapat perubahan Anggaran Dasar Perusahaan. Pada 2013 terdapat perubahan peraturan mengenai tarif angkutan kereta api kelas ekonomi. Tarif angkutan Kereta Api kelas ekonomi ditetapkan oleh Pemerintah. Tarif dimaksud terakhir ditetapkan dengan Peraturan Menteri Perhubungan Republik Indonesia No. PM 59 Tahun 2013 Informasi Material yang Mengandung Benturan Kepentingan dengan Pihak Berelasi Material Information that Contain Interest Conflict with The Related Parties Perubahan Anggaran Dasar Changes to the Articles of Association Perubahan Peraturan Perundang Undangan During 2013 and 2012, there was not conflict of interest in any transaction with related parties, which were neither directly nor indirectly related to PT KAI Persero . During 2013 and 2012, there was not any amendment on company Articles of Association. In 2013 there was a regulation change on economic class transport tariff. Tariff of the economic class passenger are determined by the government. The latest tariff was determined by the Minister of Transportation under the Decision Letter No. PM 59 Changes to the Articles of Association PT KERETA API INDONESIA PERSERO ANNUAL REPORT 2013 206 tanggal 18 Juni 2013 dan No. PM 60 Tahun 2013 tanggal 18 Juni 2013 tentang perubahan atas peraturan mentri perhubungan No PM.43 Tahun 2012 Tentang tarif angkutan orang dengan kereta api kelas ekonomi dan tarif angkutan orang dengan kereta api kelas ekonomi air conditioner. Dampak: Tarif yang ditentukan bersifat tetap, sehingga Perseroan tidak dapat mengambil potensi keuntungan dengan menaikan tarif. PERUBAHAN KEBIJAKAN AKUNTANSI Dalam tahun berjalan, Perusahaan dan entitas anak telah menerapkan semua standar baru dan revisi serta interpretasi yang dikeluarkan oleh Dewan Standar Akuntansi Keuangan dari Ikatan Akuntan Indonesia yang relevan dengan operasinya dan efektif untuk periode akuntansi yang dimulai pada tanggal 1 Januari 2012. Penerapan standar baru dan revisi serta interpretasi telah berdampak terhadap perubahan kebijakan akuntansi Perusahaan dan entitas anak yang mempengaruhi penyajian dan pengungkapan laporan keuangan konsolidasian untuk tahun berjalan atau tahun sebelumnya: PSAK 1 revisi 2009, Penyajian Laporan Keuangan PSAK 4 revisi 2009, Laporan Keuangan Konsolidasian dan Laporan Keuangan Tersendiri PSAK 7 Revisi 2010, Pengungkapan Pihak-pihak Berelasi PSAK 30 Revisi 2010, Sewa PSAK 34 Revisi 2012, Kombinasi Bisnis Entitas Sepengendali PSAK 60 Revisi 2010, Instrumen Keuangan: Pengungkapan PSAK 61, Akuntansi Hibah Pemerintah dan Pengungkapan Bantuan Pemerintah of 2013 dated June 18, 2013 and No. PM 60 of 2013 dated June 18, 2013 regarding change the rules of the minister of transportation No. PM 43 of 2012 about the freight tariff with economy class train and freight tariff with economy air conditioner class train. Impact: The tariff is fixed, so that the Company is not allowed to take potential gain by raising the tariff. CHANGE IN ACCOUNTING POLICIES In the current year, the Company and its subsidiaries have adopted all of the new and revised standards and interpretations issued by the Financial Accounting Standard Board of the Indonesian Institute of Accountants that are relevant to their operations and effective for accounting periods beginning on January 1, 2012. The adoption of these new and revised standards and interpretations has resulted in changes to the Company and its subsidiaries accounting policies in the following areas, and affected the consolidated financial statement presentation and disclosures for the current or prior years: PSAK 1 revised 2009, Presentation of Financial Statements PSAK 4 revised 2009, Consolidated and separate Financial Statements PSAK 7 Revised 2010, Related Party Disclosures PSAK 30 Revisi 2010, Leases PSAK 34 Revised 2012, Business Combination of Entities under Common Control PSAK No. 60 Revised, Financial Instruments: Disclosures PSAK 61, Accounting for Government Grants and Disclosure of Government Assistance PT KERETA API INDONESIA PERSERO ANNUAL REPORT 2013 207 Business Prospects and Corporate Strategy Analysis and Managerial Discussion Supporting Business Report Ketaatan Sebagai Wajib Pajak Obedience as a Tax Payer Selama periode tahun 2013, PT KAI Persero telah memenuhi kewajibannya sebagai wajib pajak kepada pemerintah sesuai dengan ketentuan perundang- undangan yang berlaku. Berikut diuraikan jumlah pph badan kewajiban pemotongan, dam PPN Perseroan: 1. PPH Badan: a. PPh Pasal 22 sebesar Rp 1.666.440 b. PPh Pasal 25 sebesar Rp 51.861.767 c. PPh Pasal 23 sebesar Rp 69.611.969 d. PPh Pasal 29 sebesar Rp 32.253.832 e. PPh Pasal 4 ayat 2 sebesar Rp 18.074.081 During the period of 2013, PT KAI Persero had fulfilled its obligations as a taxpayer to the government in accordance with provisions of the prevailing laws. The details of the corporate and employee tax payment of the Company are as follows: 1. Company Tax: a. Income Tax article 22 as much as IDR 1,666,440 b. Income Tax article 25 as much as IDR 51,861,767 c. Income Tax article 23 as much as IDR 69,611,969 d. Income Tax article 29 as much as IDR 32,253,832 e. Income Tax article 4 clause 2 as much as IDR 18,074,081 PT KERETA API INDONESIA PERSERO ANNUAL REPORT 2013 208 Realisasi pendapatan total tahun 2013 mencapai 91,03 terhadap target RKAP. Pencapaian di bawah target disebabkan oleh tidak tercapainya target pendapatan dari angkutan penumpang dan angkutan barang. Dilihat dari volume, angkutan penumpang mencapai 101,08 dari target, namun tidak dapat mendongkrak penjualan. Hal ini disebabkan karena sebagian besar adalah penumpang kelas ekonomi yang membayar tarif rendah. Sementara itu angkutan barang tidak mencapai target baik dari volume penjualan disebabkan keterlambatan penyelesaian proyek pembangunan prasarana. Pencapaian 2013 dan Target 2014 Realization 2013 and Target 2014 Total revenue realization in 2013 reach 91.03 of target in RKAP. This was caused by unachieved target in passenger and freight transportation. From volume view, passenger transportation achieved 101,08, but did not able to lever its revenue. This was due to most of passengers are economic class who pay lower tariff. Meanwhile revenue target of freight transportation could not achieved because of delay in infrastructure projects completion. 2. Kewajiban Pemotongan: a. PPH Pasal 2126 sebesar Rp 115.308.557 b. PPH Pasal 2326 sebesar Rp 10.342.467 c. PPH Pasal 42 sebesar Rp 6.100.291 3. PPN: a. PPN Keluaran sebesar 333.301.933 b. PPN Masukan sebesar 154.470.498 c. PPN Dibebaskan sebesar 529.171.804 4. PBB sebesar Rp 28.738.127 2. Withholding Obligations: a. Income Tax article 2126 as much as IDR 115,308,557 b. Income Tax article 2326 as much as IDR 10,342,467 c. Income Tax article 42 as much as IDR 6,100,291 3. Value Added Tax a. Output value added tax as much as IDR 333,301,933 b. Input value added tax as much as IDR 154,470,498 c. Free value added tax as much as IDR 529,171,804 4. Land and building tax as much as 28,738,127 PT KERETA API INDONESIA PERSERO ANNUAL REPORT 2013 209 Business Prospects and Corporate Strategy Analysis and Managerial Discussion Supporting Business Report Uraian 2013 Description Realisasi Pencapaian Realization Achievement 1. Angkutan Penumpang Pendapatan Rp 000.000 3.928.141 97,61 Revenue IDR 000,000 Volume Orang 221.729.333 101,08 Volume Passenger 2. Angkutan Barang Penjualan Rp 000.000 3.091.296 83,13 Revenue IDR 000,000 Volume Ton 24.713.546 79,89 Volume Tons 3. Pendukung Angkutan KA Rp 000.000 180.625 100,33 Transportation Supporting IDR 000,000 4. Usaha Non-angkutan Rp 000.000 716.915 87,22 Non-Tranportation Business IDR 000,000 5. PSO Rp 000.000 683.994 971,58 PSO 000,000 6. Lainnya Rp 000.000 138.551 251,49 Others IDR 000,000 Jumlah Pendapatan 8.600.972 91,96 Total Revenue Pada 2014, Perseroan menargetkan pendapatan sebesar Rp 13,600 triliun. Sasaran ini akan dicapai melalui fokus pada pengembangan bisnis angkutan barang baik di Sumatera maupun di Jawa. Dengan potensi pasar yang besar dan budaya perusahaan yang berorientasi pelanggan, sasaran tersebut akan tercapai. In 2014, the Company has set its revenue target at IDR 13.600 trillion. This target will be achieved through focus on freight transportation business development in Sumatera and Java. Given huge potential market, and its customer oriented culture, the target will be achieved. PT KERETA API INDONESIA PERSERO 2013 ANNUAL REPORT 210 Tata Kelola Perusahaan Good Corporate Governance Supporting Business Report Business Prospects and Corporate Strategy Analysis and Managerial Discussion PT KERETA API INDONESIA PERSERO LAPORAN TAHUNAN 2013 211 Pendahuluan Introduction

A. TATA KELOLA PERUSAHAAN

PT Kereta Api Indonesia Persero telah mengembangkan struktur dan sistem tata kelola perusahaan sejak tahun 2005. Penerapan Good Corporate Governace GCG atau Tata Kelola Perusahaan yang baik di Perseroan terus ditingkatkan dengan berpedoman pada sejumlah peraturan, yaitu: 1. Undang-Undang Nomor 19 Tahun 2003 tentang Badan Usaha Milik Negara BUMN. 2. Undang-Undang Nomor 40 Tahun 2007 tentang Perseroan Terbatas. 3. Peraturan Pemerintah Nomor 41 Tahun 2003 tentang Pelimpahan Kedudukan, Tuas dan Wewenang Menteri Keuangan pada Perusahaan Perseroan Persero, Perusahaan Umum Perum, dan Perusahaan Jawatan Perjan kepada Menteri Negara BUMN. 4. Peraturan Pemerintah Nomor 45 Tahun 2005 tentang Pendirian, Pengurusan, Pengawasan, dan Pembubaran BUMN. 5. Peraturan Presiden Nomor 47 Tahun 2009 tentang Pembentukan dan Organisasi Kementerian Negara. 6. Peraturan Meneg BUMN No. Per-01MBU2011 jo PER 09MBU2012 tentang Penerapan Tata Kelola Perusahaan yang Baik pada BUMN.

A. GOOD CORPORATE GOVERNANCE

PT Kereta Api Indonesia Persero has developed a structure and system of good corporate governance since 2005. The practice of Good Corporate Governance GCG in the Company has been consistently improved by adhering to a set of regulations as follows: 1. The Act No. 19 Year 2003 concerning State-Owned Enterprise SOE. 2. The Act No. 40 Year 2007 concerning Limited Corporations. 3. The Government Regulation No. 41 Year 2003 concerning the Delegation of Position, Duties and Authority of the Minister of Finance in Limited Corporation Persero, Public Company Perum, and Corporate Office Perjan to the Minister of SOE. 4. The Government Regulation No. 45 Year 2005 concerning the Establishment, Management, Audit, and Dismissal of SOE. 5. The President Regulation No. 47 Year 2009 concerning the Establishment and Organization of State Ministry. 6. The Regulation of The Minister of SOE No. Per-01 MBU2011 jo PER 09MBU2012 concerning the Practice of Good Corporate Governance in SOE.. PT KERETA API INDONESIA PERSERO 2013 ANNUAL REPORT 212 7. Peraturan Meneg BUMN No. PER-01MBU2012 jo PER-06MBU2012 dan PER-16MBU2012 tentang Persyaratan dan Tata Cara Pengangkatan dan Pemberhentian Anggota Direksi BUMN. 8. Peraturan Meneg BUMN No. PER-03MBU2012 tentang Pedoman Pengangkatan Anggota Direksi dan Anggota Dewan Komisaris Anak Perusahaan BUMN. 9. Peraturan Meneg BUMN No. PER-12MBU2012 tentang Organ Pendukung Dewan Komisaris dan atau Dewan Pengawas BUMN.

B. TUJUAN PENERAPAN GCG

Tujuan penerapan GCG di PT Kereta Api Indonesia Persero adalah : 1. Memaksimalkan nilai perusahaan dengan meningkatkan prinsip transparansi, akuntabilitas, bertanggung jawab, kemandirian, serta adil agar perusahaan memiliki daya saing kuat, secara nasional maupun internasional. 2. Mendorong pengelolaan perusahaan secara profesional, efisien efektif, memberdayakan fungsi, serta meningkatkan kemandirian organ perusahaan. 3. Mendorong organ perusahaan membuat keputusan dan menjalankan tindakan berlandaskan nilai moral yang tinggi, kepatuhan terhadap peraturan perundang- undangan, serta kesadaran tanggung jawab sosial perusahaan terhadap pemangku kepentingan maupun kelestarian lingkungan di sekitar perusahaan. 4. Meningkatkan kontribusi perusahaan dalam perekonomian nasional. 5. Meningkatkan iklim investasi nasional. 6. Menciptakan citra perusahaan yang baik. 7. The Regulation of The Minister of SOE No. PER-01 MBU2012 jo PER-06MBU2012 and PER-16MBU2012 concerning The Requirements and Procedures of SOE’s Board of Directors Appointment and Dismissal. 8. The Regulation of The Minister of SOE No. PER-03 MBU2012 concerning Codes of SOE and SOE’s Subsidiaries Board of Directors and Board of Commissioners Appointment. 9. The Regulation of The Minister of SOE No. PER-12 MBU2012 concerning SOE’s Board of Commissioners Supporting Corporate Organs andor SOE Board of Supervisors.

B. GCG IMPLEMENTATION PURPOSE

The objectives of GCG practice in PT Kereta Api Indonesia Persero are: . 1. Maximizing corporate values through enhancing the principles of transparency, accountability, responsibility, independenty, and equity to make the Company highly competitive both nationally and internationally. 2. Promoting professional, efficient and effecetive GCG practices, empowering the function and enhancing the independence of corporate organs. 3. Encouraging corporate organs to make decisions and to perform high morality actions and compliance with the prevailing laws and regulations, as well as awareness of corporate social responsibility CSR to the stakeholders and the environment conservation surrounding the Company. 4. Increasing the Company’s contribution to the national economy. 5. Improving national investment climate. 6. Creating a good company image.