Audit Committee

Duties and Responsibilities of Audit Committee

Pursuant to the Financial Services Authority Regulation No: 55/POJK.04/2015 concerning the Establishment and Work Guideline of the Audit Committee, in carrying out its duties, the Audit Committee has duties and responsibilities, authorities, and is required to have an Audit Committee Charter. The duties and responsibilities and authorities as stipulated in the Audit Committee Charter are as follows:

• • Review the financial information that will be issued by the Company to the public and/or the authorities, including financial reports, projections, and other reports related to the Company’s financial information.
  • Review compliance with laws and regulations related to company activities.
  • Provide an independent opinion in the event of a difference of opinion between the management and the accountant on the services provided.
  • Provide recommendations to the Board of Commissioners regarding the appointment of an Accountant based on independence, scope of assignment, and remuneration for services.
  • Review the implementation of the audit by the internal auditors and supervising the implementation of follow-up actions by the Board of Directors on the findings of the internal auditors.
  • Review the risk management activities carried out by the Board of Directors, if the Company does not have a risk monitoring function under the Board of Commissioners.
  • Review complaints related to the Company’s accounting and financial reporting processes.
  • Review and provide advice to the Board of Commissioners regarding potential conflicts of interest with the Company.
  • Maintain the confidentiality of documents, data including the Board of Directors and those who carry out the functions of internal audit, management and company information.

Authority of the Audit Committee:

• • Access company documents, data, and information about employees, funds, assets, and necessary company resources.
  • Communicate directly with employees, risks, and accountants.
  • Involve independent parties other than members of the Audit Committee as needed to assist the implementation of the duties of the Audit Committee.
  • Perform other authorities given by the Board of Commissioners.

Audit Committee Charter

The Company has an Audit Committee Charter which was established by the Board of Commissioners on May 1, 2018. The Audit Committee Charter is a work norm that must be obeyed by members of the Audit Committee in carrying out their duties.

The contents of the Audit Committee Charter are as follows:

• Purpose of establishment of the Audit Committee;
• Requirements for members of the Audit Committee;
• Authority of the Audit Committee;
• Duties and responsibilities of the Audit Committee;
• Work procedures of the Audit Committee;
• Audit Committee reporting system; and
• Update the Audit Committee Charter as necessary.

Independence of the Audit Committee

As stipulated in the prevailing laws and regulations, the Audit Committee requires that the Audit Committee consists of at least three members, one of whom is an Independent Commissioner – in this case Sanjeva Advani – who is not affiliated and serves as the head. Meanwhile the other two members must be independent parties, at least one of whom must have expertise in accounting and/or finance. To fulfill the independence requirements in accordance with applicable regulations in Indonesia, members of the Audit Committee are not appointed from the Executive Officers of the Public Accounting Firm that provide audit services and/or non-audit services to the Company within the last six months. On this basis, the Company appointed two members of the Audit Committee who meet the requirements of independence/no conflict of interest with the Company, including family, financial, management, and ownership relationships with the Company.