Internal Audit Unit SPI, is a structural technical unit within the Secretary to the Board of Commissioners, is the supporting organ of Corporate Secretary, is a structural function unit within the Company, Stakeholders are pa

1 CHAPTER I INTRODUCTION CHAPTER II THE PRINCIPLES OF GOOD CORPORATE GOVERNANCE CHAPTER III THE COMPANY ORGANS CHAPTER IV THE COMPANY’S PRINCIPAL POLICY CHAPTER VI MANAGEMENT OF RELATION- SHIP WITH STAKEHOLDERS CHAPTER VII IMPLEMENTATION OF GUIDELINES CHAPTER VIII CLOSING CHAPTER V MANAGEMENT OF SUBSIDIARIES 1 1 2 5 . G o o d C o rp o ra te G o v e rn a n c e G C G , h e re in a ft e r re fe rr e d to a s co rp o ra te g o v e rn a n ce , is th e p ri n ci p le s th a t u n d e rl ie a p ro ce ss a n d m e ch a n ism o f co mp a n y m a n a g e me n t b a se d o n l e g isl a ti o n a n d b u si n e s s e th ics. 1 12 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 13 13

CHAPTER II THE PRINCIPLES OF GOOD CORPORATE GOVERNANCE

The spirit to implement GCG within the Company is reflected in the Companys corporate governance principles that are accommodated in the implementation of daily business activities of the Company, which in this case consists of: A. TRANSPARENCY Transparency is disclosure in decision making process and in delivering material and relevant information regarding the Company accurately and timely. Things that must be considered in implementing transparency principle are disclosure of information by the Company is carried out by: 1. Complying with the Articles of Association, prevailing legislation, the Company Regulations and the principles of GCG. 2. Providing information, either mandatory information, or discretionary information that brings added value for the Company and does not reduce the Companys obligations to comply with the provisions of confidentiality to shareholders and stakeholders accurately and timely, and is accessible in accordance with restriction as determined by the Company.

B. ACCOUNTABILITY

Accountability is the clarity of function, implementation and accountability of the Company’s organ and employees, in order that the management of the Company can be conducted effectively. PT SUCOFINDO PERSERO allocates or assigns 3 three levels of accountability in every activity of the Company. This accountability includes: 1. Individual Accountability Individual accountability refers to the accountability relationship between superior and subordinate. Accountability applies to the parties, who have 1 14 the authority or obtain an assignment from the holders of authority delegation of tasks. Holder of authority is responsible for providing direction, guidance and resources required as well as assistance in removing any obstacles that may affect the performance. Tasks executor is responsible for the completion of the results or targets of the assignment or delegation of authority granted. In this context, both sides have their respective accountability. 2. Accountability of Work UnitTeam Accountability of Work UnitTeam refers to an accountability that is borne together by a Work UnitTeam on the achievementunfulfillment of the tasks assigned. In the case of Work UnitTeam submits a report, it must be differentiated between individual and Working UnitTeam accountability. 3. Corporate Accountability Corporate accountability refers to the accountability of the Company. In conducting its role as a business entity, PT SUCOFINDO PERSERO is responsible for the business activity that it performs. Each Organ of the Company is accountable for its respective duties and responsibilities with respect to legislation, the Company policies, regulations and other provisions of the Company. Things that must be considered in implementing the principles of Accountability are: 1. Assign clear accountability of each of Insan SUCOFINDO in line with the vision and mission of the Company, including policies that support the implementation of tasks and obligations in accordance with the prevailing legislation. 2. Carry out the duties and obligations for the interest of the Company on individual basis, work unit team andor corporate. 3. Be responsible for the task implementation based on performance measurement defined by the Company, in a timely manner.