Creating a system to require period statements of

6. Creating a system to require period statements of

independence from both the Boards of Directors and Commissioners.

This statement of corporate governance practices during 2002 follows Guidance Note 9 of the ASX Listing rules and in consideration of best practice reco m m en d a t io n s set b y t h e ASX Co rp o ra t e Governance Council and the Code for Good Corporate Govern an ce advocated by In don esia’s Nation al Committee for Corporate Governance. A letter by Ernst & Young, accompanies this statement.

Board of Directors and Board of Commissioners Like other Indonesian companies Antam has a two- tier board structure. The Board of Commissioners acts on behalf of the shareholders to supervise and provide guidance to the Board of Directors, who are the executives of the company. The Board of Commission ers con sists of four commission ers, in c lu d in g o n e In d e p e n d e n t Co m m is s io n e r. Commissioners are akin to non- executives and are led by the President Commissioner. Antam’s Board of Directors con sists of 5 ex ecu tive directors, in clu din g t h e Presiden t Direct or. Th e role of President Director and President Commissioner are completely separate.

While the Board of Commissioners had only one In d ep en d en t Co m m issio n er, a ll m em b ers a re independent in that they are free from any ties to the Board of Directors or the corporate entity of An t a m . Th e In d ep en d en t Co m m issio n er is a requirement of Indonesian capital law to ensure the representation of minority shareholders. According to the law, 30% of all Boards of Commissioners must

be independent. The appointment of the Independent Commission er was made through a tran sparen t select io n co m m it t ee t h a t in v o lv ed m in o r it y s h a r e h o ld e r s . Th e Bo a r d o f Dir e c t o r s a n d Commissioners have no direct or indirect business or oth er rela tion sh ip with An ta m th a t wou ld interfere with a member’s ability to act in the best interests of the company.

perseroan unt uk kepent ingan perusahaan, misalnya,

While carrying out their duties both Boards make

penggunaan konsult an dalam melakukan proses due

frequent use of outside expertise and resources that

diligence unt uk pembelian saham Kalt im Prima Coal.

are made available to them by the company. Examples of this include the due diligence performed to decide

Direksi dan Komisaris Ant am memiliki penget ahuan yang

on whether or not to purchase an interest in a coal

luas akan industri pertambangan, termasuk di dalam bidang

company called Kaltim Prima Coal.

keuangan dan audit, eksplorasi bahan galian, pengembangan t ambang, manajemen risiko, dan f ormulasi st rat egi,

An tam’s Boards have detailed kn owledge in all

hubungan masyarakat dan hubungan dengan pemerint ah,

aspects of the mining industry, including finance and

sert a pemasaran int ernasional. Direksi dan Komisaris

auditing, mineral exploration, mine development, risk

mengadakan rapat formal lebih dari dua kali set iap bulan.

management and strategy setting, community and

Direksi juga mengadakan rapat formal lebih dari 1 kali

government relations and international marketing.

dalam sebulan dan membent uk t im- t im ad hoc yang

The Boards meet together formally more than twice

beranggotakan pejabat setingkat manajer dan diketuai oleh

per month. The Board of Directors meet formally more

salah sat u anggot a Direksi. Selain it u pert emuan informal

than once per month and make use of ad hoc senior

ant ara anggot a Direksi juga sering diadakan.

management teams, which usually are chaired by a Director as well as frequen t in formal meetin gs

Skema Saham dan Opsi

amongst Board members.

Pada t ahun 2002, t idak ada skema saham dan opsi at aupun rencana unt uk hal t ersebut . Program alokasi saham

Share and Options Schemes

karyawan Ant am (employee st ock allocat ion - ESA) yang

In 2002, there were neither share and options schemes

t el ah berj al an t i ga t ahun, m engal okasi kan saham

in existence nor any plans for creating any. Antam’s

perusahaan dalam jumlah t ert ent u unt uk set iap karyawan

Employee Stock Allocation Plan (ESAP), which

berdasarkan seniorit as dan masa kerja t elah selesai

allocated a certain amount of company stock to each

dilaksanakan. Pada t ahun 2002, dengan berakhirnya

employee ba sed on sen iority a n d du ra tion of

program ESA, karyawan bebas untuk menjual saham mereka

employment, had terminated. In 2002, the ESAP was

yang dialokasikan melalui program t ersebut .

fully implemented and employees were free to sell their shares allocated during the three-year program.

Kebijakan t ent ang perdagangan efek milik direkt ur dan karyawan berpedoman pada Perat uran Pasar M odal Nomor

Antam’s policy on the trading of its securities by

X.M .1, bahwa set iap direkt ur at au komisaris dari emit en

directors and employees was guided by the Capital

at au perusahaan publik harus menyampaikan laporan

Market Regulation X.M.1, in that each Director or

kepada Bapepam (Badan Pen gaw as Pasar M odal )

Commissioner of an issuer or public company must

seh u bu n gan den gan kepem i l i kan dan per u bah an

report to Bapepam (the regulator of the capital market)

kepemi l i kan saham dal am j angka w akt u sel ambat -

with regard to their ownership and any changes of

lambat nya 10 hari kerja sejak t anggal t ransaksi.

ownership within a period no later than 10 working days from the transaction date.

Komit e- komit e Perusahaan Ant am t elah membent uk komit e yang bert ugas unt uk

Board Committees

m em beri kan rekom endasi kepada Kom i sari s dal am

Antam establishes board committees to examine

mendukung pengaw asan at as pengelolaan perusahaan,

various issues and make recommendations to the

dengan jumlah anggot a dan st rukt ur yang kecil sehingga

Board of Commission ers. With the purpose of

menjadi lebih t erf okus pada masalah- masalah t ert ent u

supporting the oversight of the management of the

dan independen. Anggot a Komisaris akan bert indak

company, their small size and structure allow for more

sebagai ket ua dari komit e Ant am, dan apabila diperlukan

focus on certain issues and independence. Members

akan dilibat kan t enaga ahli independen. Pada t ahun

of the Board of Commission ers chair An tam’s

2002, Ant am t el ah m em bent uk Kom i t e Audi t dan

committees, and where necessary include independent

m em p er t i m b an g k an u n t u k m em b en t u k Ko m i t e

experts. In 2002, Antam had an Audit Committee.

M anaj em en Ri si ko Ant am pada t ahun 2003 yang

An tam will evaluate plan s to establish a Risk

diket uai oleh salah sat u anggot a Komisaris.

Management Committee in 2003.

Laporan Tahunan 2002 Annual Report

66 ANTAM

ANTAM 67 Laporan Tahunan 2002 Annual Report

Audit Antam’s Audit Committee was first established in July 2000, in line with a regulation of the Jakarta Stock Exchange. Antam formed a new three-person Au dit Committee in Ju ly 2002 a s pa rt of th e implementation of good corporate governance. The co m m it t ee is a cco u n t a b le t o t h e Bo a r d o f Commissioners, consists of non-affiliated experts and is ch a ir ed b y An t a m ’s n ew In d ep en d en t Commissioner, Mr. Yap Tjay Soen. There are no representatives of management and a charter is used to clearly identify the key responsibilities, including monitoring the internal audit and other business fu n ct ion s, especia lly fin a n cia l report in g a n d coordinating with the external auditor. The audit committee charter is available to shareholders.

Risk Management The risk management function shall draw on outside expertise in undertaking its responsibility to ensure that risks are appropriately managed to promote growth and safeguard the assets of the company. By t h e en d o f 2 0 0 2 An t a m w a s fin a lizin g r isk ma n a gemen t policy, wh ich bu ilds on th e risk management project Antam completed with Andersen Consulting in 2000. The risk management philosophy can be summarized as one recognizing the inherent high risks of the mining business, dependent as it is upon the availability of non-renewable resources. It demonstrates Antam’s commitment to consider all risks in an effective and efficient manner to ensure sustainability, profitability and growth in line with

Audit Komit e Audit Ant am pert ama kali dibent uk pada bulan Juli 2000, sesuai dengan perat uran Bursa Efek Jakart a. Ant am membent uk sebuah Komit e Audit baru yang memiliki t iga orang anggot a pada bulan Juli 2002 sebagai bagian dari implement asi GCG. Komit e t ersebut bert anggung jawab kepada dew an komisaris dan beranggot akan t enaga profesional yang memiliki keahlian dan t idak t erafiliasi dengan perusahaan, sert a di ket uai ol eh Kom i sari s Independen Antam yang baru, Yap Tjay Soen. Piagam Komite Audit yang baru dibuat menggambarkan t anggung jawab ut ama, t ermasuk pemant auan audit int ernal dan fungsi komit e lainnya, sepert i hal yang berkait an dengan laporan keuangan dan koordinasi dengan audit or ekst ernal. Piagam Komit e Audit t ersedia bagi pemegang saham.

M anajemen Risiko Fungsi manajemen risiko t ersebut dapat memanfaat kan t enaga ahli dari luar perusahaan dalam melaksanakan t anggung jawabnya unt uk memast ikan bahwa manajemen risiko t elah dilakukan dengan baik unt uk meningkat kan pert umbuhan dan melindungi aset perusahaan. Sampai dengan akhir t ahun 2002, Ant am sedang menyelesaikan kebijakan manajemen risiko, yang didasarkan pada konsep manajemen risiko yang t elah diselesaikan oleh Ant am bersama dengan Andersen Consult ing pada t ahun 2000. Falsaf ah manajemen risiko Ant am adalah menyadari adan ya r i si ko yan g besar pada kegi at an u sah a pert ambangan yang t ergant ung pada keberadaan sumber daya yan g t i dak t er bar u kan . Fal saf ah t er sebu t menunjukkan komit men Ant am unt uk memperhat ikan semua risiko secara efekt if dan efisien unt uk memast ikan kesinambungan, profit abilit as dan pert umbuhan sesuai dengan misi dan visi perusahaan. Prinsip risiko t erukur dit erapkan dalam pengalokasian sumber daya perusahaan.

Rapat Direksi

Rapat Komisaris

Rapat Komisaris dengan Direksi