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201 PT Telkom Indonesia Persero Tbk

c. Gratiication Control

To show Telkom’s seriousness to its commitment towards gratiication control, all Board of Directors are singing an Integrity Pact as a form of good corporate governance. This signing is a proof of Telkom’s seriousness to its commitment towards gratiication control. The company and its employees must report any gratiication with a tendency of bribery at the latest 30 days since accepting the gratiication.

d. Internal Control

The implementation of Internal Control, as the prerequisite of SOX compliance, has strict requirements to guarantee and support the good corporate governance. The purpose of SOX is certainly in tune with the implementation of GCG and ethics, which is: 1. Improving the efectiveness and eiciency of the company’s management. 2. Improving the quality of the company’s financial reporting. 3. Ensuring the obedience to the law and or other regulations that must be fulilled by the company. 4. Developing investors’ confidence level and in the long term can guarantee the sustainability of the company. RATING AND ASSESSMENT OF CORPORATE GOVERNANCE To receive feedback for the improvement of GCG best practice implementation performance, Telkom examines the results of periodic reviews conducted by a competent independent external assessor. During the reporting period, assessment is conducted by IICD The Indonesian Institutes for Corporate Directorship, in collaboration with the Indonesian Financial Services Authority OJK. Assessment by IICD IICD is a non-profit organization that was established by 10 reputable universities and business school and is a reputable provider of advocacy, training and research service in the field of corporate governance CG in Indonesia. IICD in collaboration with the Indonesian Financial Services Authority OJK, is conducting assessment of the implementation of CG of public company issuer. The assessment is conducted to 100 issuers with the most capital as registered in the Indonesian Stock Exchange for the inancial year 2014. The result is that as much as 50 issuers are considered as having the highest CG score according to the ASEAN CG Scorecard methodology. Out of these 50 issuers considered as having the highest CG score, OJK and IICD then choose 24 winning issuers from 10 categories. Telkom received an award in the category of “The Best State Owned Enterprise”. CORPORATE GOVERNANCE AWARDS Various eforts to improve the quality of implementation are conducted, which make Telkom received a number of awards in the ield of Good Corporate Governance in 2015 that is showing that the implementation of good corporate governance has been leading up to Good Corporate Governance Excellence. The Awards received include: • Best Listed Companies Award - Top Performing Listing Companies 2015 from Investor Magazine. • Forbes Global 2000 Companies – Rank 783 from Forbes Magazine. • Indonesia Good Corporate Governance Award – Very Good Predicate for Companies in Infrastructure, Utilities, and Transportation Sector from Economic Review. • Annual Report Award - 3rd winner of Non-Financial State-Owned Enterprise Listed by OJK, BEI and KNKG. • IICD Award - The Best State-Owned Enterprise from Indonesian Institute for Corporate Directorship. • Indonesian Sustainability Reporting Award 2015 from National Center for Sustainability Reporting NCSR. 202 PT Telkom Indonesia Persero Tbk THE STRUCTURE AND MECHANISM OF GOOD CORPORATE GOVERNANCE The structure and mechanism of Good Corporate Governance in Telkom environment is shown in this chart. BOARD OF DIRECTORs Corporate secretary Audit Committee Nomination Remuneration Committee planning, Evaluation and Risk Monitoring Committee BOARD OF COMMIssIONERs Main Organ support General Meeting of shareholders Risk process Management unit Internal Auditor Telkom’s management is conducted according to the two-tier board structure mechanism. As shown in the chart, the highest institution in the company is the General Meeting of Shareholders GMS forum, while the company’s management is the responsibility of the Board of Commissioners and Directors. The Board of Commissioners has the task and responsibility to conduct surveillance on daily operational activities that become the responsibility of the Board of Directors. GENERAL MEETING OF SHAREHOLDERS The General Meeting of Shareholders“GMS”, either Annual GMS “AGMS” or Extraordinary GMS “EGMS”, is the highest institution in the good corporate governance, and also the main forum for the shareholders to use their rights and authorities in the company’s management. EGMS can be held based on needs. In implementing its authority, GMS must pay attention to the interest of the Company’s development and wellbeing, the interests of the stakeholders and the rights of the Company. TELKOM’S SHAREHOLDERS We classify Telkom’s shareholders in 2 two types, one share of Dwiwarna A Series as the controlling shareholder and 100,799,996,400 shares of B Series. To get more details of our shareholders composition diagram, see Telkom Indonesia General Information – Stock Information – Shareholders Composition. THE RIGHTS RESPONSIBILITIES OF THE SHAREHOLDERS IN THE GENERAL MEETING OF SHAREHOLDERS In AGMS and EGMS, shareholders have the right to receive equal treatment and position, especially in voicing their opinion and contributing to the important and strategic decision-making process related to: 1. The appointment and dismissal of the Board of Commissioners and Board of Directors of Telkom, 2. The decision of the remuneration and allowance for the Board of Commissioners and Board of Directors of Telkom, 3. The assessment of the Company’s performance in the reporting year, 4. The decision and agreement to the use of the Company’s proits including the amount of dividend,