Governance principles



In accordance with the objectives of the company, the company's management is always trying to increase the value and positive image of the company. The company is committed to implement Good Corporate Governance (GCG - GCG) with basic principles of fairness, transparency, accountability, responsibility and independency so that the company can make a wise decision and prudent in terms of the risks in its business operations to create value for shareholders, creating products and providing services that are valuable to the customer, providing jobs opportunities for employees and creating value for shareholders. Good Corporate Governance is basically created as monitoring and control system that supports the company's work ethic and responsible decision making, integrity in financial reporting, proper risk management, and the proper actions of employees and the company.

To implement GCG, the company has prepared the necessary tools, such as: Board of Commissioner which includes one Independent Commissioner, the Board of Directors which includes one Unaffiliated Director and Secretary of the Company.

Board of Commissioners and Board of Directors have the authority and responsibility in accordance with their own functions as mandated by the Constitution and legislation in force. However, both have a responsibility to maintain the continuity of the company's business in the long term. Therefore, the Board of Commissioners and Board of Directors have had the same perception regarding of the company's vision and mission.

Board of Commissioners consists of one Chairman and one Independent Commissioner. The Board of Commissioners have a duty to oversee the implementation of the company's strategy and also oversees the Board of Directors to ensure the implementation of transparency and accountability in the management of the Company. Independent Commissioner has main responsibility to encourage the implementation of the principles of good corporate governance in the Company. In performing its duties, the Independent Commissioner will proactively strive for the Board of Commissioners to supervise and advise the Board of Directors effectively to improve the company's performance, take the appropiate risks to consider the business objectives of the company in obtaining profits for shareholders and ensure transparency and a balanced disclosure in the financial reports of the company.

The Board of Directors consists of a President Director and three Directors, one of them is an Independent Director, together take full responsibility of the implementation of the entire course of the company's business activities. President Director holds the function of coordination between the members of the board of directors and as the final deciding on strategies and policies to be taken of the company. The Board of Directors are in charge and responsible for managing the company according to the provisions of the Articles of Association and the applicable laws and regulations.

As a public company, the Company has also assigned the Secretary of the Company as the official liaison with all stakeholders of the company.

The Company has established an Audit Committee that will assist the Board of Commissioners to supervise the aspects of compliance with good corporate governance principles.

The Audit Committee is appointed and responsible to the Board of Commissioners with the duties to provide opinions to the Board of Commissioners regarding to the reports or matters submitted by the Board of Directors to the Board of Commissioners, identify matters that require the attention of the Commissioner and carry out other tasks related to the task Board of Commissioners.

The Company has also established the Internal Audit Unit and create the Internal Audit Charter, in order to organize and conduct an annual internal audit as well as other matters relating to financial reporting and internal controls in accordance with the duties and responsibilities that have been previously described above.

Decision-making General Meeting of the Company is carried out fairly and transparently by concerning to the necessary things to protect the interests of the Company.