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Audit Committee

Composition of Audit Committee

Audit Committee consists of 1 (one) Independent Commissioner as the chairman and 2 (two) independent external party members who meet independence requirements as set out in Financial Services Authority Regulation No. 55 /POJK.04/2015 dated December 23, 2015 concerning Establishment and Implementation of Audit Committee.

In 2021 there was a change in the composition of Audit Committee based on the Board of Commissioners Decree No. 002/SM/SK-DEKOM/IV/2021 dated April 29, 2021. The change has been reported to OJK by letter No: 008/SM-CS/ IV/2021 dated 29 April 2021.

Accordingly, the composition of the Audit Committee as of December 31, 2021 is as follows:

Position Name
Chairman Lindawati Gani
Member Dr. Timotius, AK., CA
Member concurrently Secretary Herwan, NG
Independency Statement

In carrying out their duties and responsibilities, all members of Audit Committee are committed to upholding GCG principles by being objective, professional and independent. Audit Committee will not make decisions under pressure and intervention of any party and avoid any potential conflict of interest. All members of Audit Committee do not have affiliate relationships both in a family and business relationship with members of Board of Commissioners, Board of Directors and Major and /or Controlling Shareholders.

Audit Committee Charter

Audit Committee has an Audit Committee Charter as a guideline in carrying out its functions. Provisions stipulated in Audit Committee Charter are:

  1. Establishment and objectives,
  2. Composition, structure and membership,
  3. Duties and responsibilities,
  4. Authorities,
  5. Meetings,
  6. Reporting,
  7. Work relations,
  8. Handling complaints or reporting of suspected violations related to financial statements, and
  9. Closing.
Duties and Responsibilities

In performing its functions, the Audit Committee has the duties and responsibilities of at least include:

  1. Reviewing the Company’s financial information to the public and/or the authorities, among others, financial reports, projections and other reports related to the Company’s financial information
  2. Reviewing the compliance with laws and regulations relating to the Company’s activities;
  3. Provide an independent opinion in the event of any disagreement between management and the public accountant for the services it provides;
  4. Providing recommendations to the Board of Commissioners regarding the appointment of public accountant based on the independence, scope of the assignment, and remuneration;
  5. Reviewing the conduct of audits by internal auditors and overseeing the implementation of follow-up actions by the Board of Directors on the findings of internal auditors;
  6. Reviewing the risk management activities conducted by the Board of Directors, if the Company does not have a risk monitoring function under the Board of Commissioners;
  7. Review complaints relating to the Company’s accounting and reporting process;
  8. Review and advise the Board of Commissioners regarding the potential conflict of interest of the Company;
  9. Maintain confidentiality of Company documents, data and information
Authority

In performing its duties, the Audit Committee has the following powers:

  1. Access Company documents, data, and information about employees, funds, assets, and necessary company resources;
  2. Communicate directly with employees, including the Board of Directors and those exercising internal audit, risk management, and accounting functions related to the Audit Committee’s tasks and responsibilities;
  3. Involve independent parties outside the members of the Audit Committee who are required to assist in the execution of their duties (if necessary);
  4. To exercise other powers granted by the Board of Commissioners.
Audit Committee Meeting

In 2021, Audit Committee held 10 meetings attended by all Committee members. Committee meeting may invite the Company’s internal parties including Board of Commissioners, Board of Directors or other functions, if needed. The dates and agenda of the Committee meetings are as follows:

Meeting Date Meeting Agenda Committee Attendance Meeting
February 1 Audit Committee meeting with Public Accounting Firm 100%
April 19 Review of Financial Statement Q1 2021 100%
June 2
  1. Internal Audit Work Plan for second half of 2021
  2. Strengthening Internal Audit function
  3. Reviewing risk management function
100%
July 15 Review of Financial Statement Q2 2021 100%
July 19
  1. Review of business processes of the Company and its subsidiaries
  2. Review of affiliate transaction procedures
100%
August 13
  1. Presentation of the Internal Audit roadmap
  2. Review of affiliate transaction procedures
100%
October 14 Review of Financial Statement Q3 2021 100%
October 19
  1. Internal Audit Report for period of August-September 2021
  2. Report of ongoing internal audit activities
100%
November 15 Audit Committee meeting with Public Accounting Firm 100%
December 21
  1. Internal Audit Report for period of October-November 2021
  2. Report of ongoing internal audit activities
  3. Presentation of the Internal Audit roadmap and 2023 Internal Audit Plan
100%
Summary of Audit Committee Activity Report In 2021

During 2021, Audit Committee carried out its duties and responsibilities in accordance with the Company’s Audit Committee Charter. Duties of Audit Committee conducted in 2021 included:

  1. Reviewed and discussed 2020 consolidated financial statements 2021 quarterly and mid year consolidated financial statements;
  2. Assessed performance of public accountants and/ or public accounting firms that audit the Company’s annual financial statements for financial year 2020;
  3. Provided recommendation to Board of Commissioners on appointment of public accountant and or public accounting firm to audit the Company’s Financial Statements for financial year 2021;
  4. Provide advice Board of Commissioners regarding the formation, procedures, work plan and finding of Internal Audit.