Internal Audit

The Company has established an Internal Audit Unit that performs its audit function independently and objectively. This unit plays a strategic role in strengthening internal controls, providing assurance, and advisory services to enhance the company’s value, and ensuring that operations are conducted efficiently and transparently. Through a systematic approach, the Internal Audit Unit evaluates and improves the effectiveness of risk management, control, and governance, while providing strategic recommendations to support management decision-making and long-term business sustainability. The establishment and charter of the Internal Audit Unit are in accordance with Financial Services Authority Regulation No. 56/POJK.04/2015.

Parties Appointing and Dismissing the Head of the Internal Audit Unit

The process for appointing and dismissing the Head of the Internal Audit Unit is set out in the Company’s Internal Audit Unit Charter. In accordance with the charter, the Head of the Internal Audit Unit is appointed and dismissed by the President Director with the approval of the Board of Commissioners, and reported to the Financial Services Authority.

PROFILE OF THE HEAD OF INTERNAL AUDIT

Until the end of 2025, Joni Susanto Agus was the Head of the Internal Audit Unit based on Board of Directors Decree No. 002/SM/SKDIR/VI/2022 dated June 30, 2022 and Board of Commissioners Approval Letter No. 001/SP-DEKOM/VI/2022 dated June 28, 2022.

ORGANIZATIONAL STRUCTURE AND POSITION OF THE INTERNAL AUDIT UNIT

The Internal Audit Unit is structurally accountable to the President Director, while also having direct functional access to the Audit Committee to coordinate, collaborate, and report on the implementation and results of audits. In addition, the Internal Audit Unit also has the right to communicate with all units within the Company to obtain information, clarification, and documents or reports that support internal audit activities. The structure of the Internal Audit Unit in 2025 consists of 5 (five) personnel, including 1 (one) Head of the Internal Audit Unit and 4 (four) members.

Professional Competence and Accuracy Requirements

Pursuant to Article 6 of POJK No. 56/POJK.04/2015, the Company has established the following requirements for the Internal Audit Unit:

1. Possess integrity and professional conduct, independence, honesty, and objectivity in the performance of their duties;
2. Possess knowledge and experience in audit techniques and other disciplines relevant to their field of work;
3. Possess knowledge of laws and regulations in the capital market and other relevant laws and regulations;
4. Possess the ability to interact and communicate effectively both verbally and in writing;
5. Comply with professional standards issued by internal audit associations;
6. Comply with the internal audit Code of Conduct;
7. Must maintain the confidentiality of the Company’s information and/or data related to the implementation of Internal Audit duties and responsibilities, unless required by laws and regulations or judicial decisions;
8. Understand the principles of good corporate governance and risk management; and
9. Is committed to continuously enhancing their knowledge, expertise, and professional competencies.

Internal Audit Unit Professional Certification

The Company’s Internal Audit Unit systematically improves the competence of its human resources through a tiered development program, including the participation of internal auditors in professional certification issued by leading national institutions.

The Company affirms its efforts to strengthen the quality of internal audits by gradually improving the professional competence of its employees, targeting higher certifications in the years ahead as part of an effective supervision and governance strategy. The certification level held by Joni Susanto Agus (Head of the Internal Audit Unit) is Qualified Internal Auditor (QIA) from the Internal Audit Education Foundation.

INTERNAL AUDIT UNIT CHARTER

The Internal Audit Unit’s functions are based on the Internal Audit Charter, which was first published on June 18, 2013, and last updated on June 28, 2022. The Internal Audit Unit Charter regulates various matters related to:

1. Definition;
2. Mission;
3. Objectives;
4. Core Principles;
5. Structure and Position;
6. Membership;
7. Requirements and Qualifications for Internal Auditors;
8. Scope;
9. Duties and Responsibilities;
10. Authority;
11. Independence, Objectivity, and Professionalism;
12. Competence, Professional Care, and Continuing Professional Development;
13. Code of Conduct; and
14. Reporting Activities

Download: Internal Audit Charter 2022 (PDF, 11MB)

Duties and Responsibilities of the Internal Audit Unit

The Internal Audit Unit has the following roles and responsibilities:

1. Preparing an annual audit plan based on risks, annual staff plans, and requirements, and the Internal Audit Unit’s budget for approval by the President Director and the Audit Committee. If there are significant changes to the plan that has been submitted, the Head of Internal Audit must submit the changes along with the revised plan to the President Director and the Audit Committee;
2. Assessing the adequacy, testing, and evaluating internal control mechanisms and risk management systems in accordance with the Company’s policies;
3. Assessing the effectiveness and efficiency of control procedures implemented in the areas of finance, accounting, operations, human resources, marketing, information technology, and other activities;
4. Providing recommendations for improvement and objective information about the activities examined at all levels of management;
5. The Internal Audit Unit is responsible for submitting reports on audit activities and findings to the President Director and Board of Commissioners through the Audit Committee;
6. Monitoring, analyzing, and reporting on the implementation of recommended improvements;
7. The Internal Audit Unit works closely with the Audit Committee to enable the Audit Committee to perform its role in accordance with applicable regulations;
8. Developing programs to evaluate the quality of internal audit activities;
9. Conducting special examinations when necessary;
10. The Internal Audit Unit is responsible for conducting ad-hoc assignments given by the President Director or Audit Committee as long as there is no conflict of interest;
11. The Head of Internal Audit must assess the competence, understanding, and knowledge of audit staff in relation to the audit work to be performed. If the Internal Audit Unit does not have sufficient competence, understanding, or knowledge for a particular matter, the Head of the Internal Audit Unit must report to the President Director and the Audit Committee, and the Audit Committee must then appoint an independent third party.

The performance of the Internal Audit Unit’s duties is periodically evaluated and refined, in line with the internal control system, risk management, and corporate governance for the effective and efficient achievement of the Company’s objectives.

Implementation of Duties of the Internal Audit Unit in 2025

Throughout 2025, the Internal Audit Unit has completed various duties that have strengthened the supervision’s effectiveness and improved the quality of corporate governance. These are the activities that have been completed:

1. Implementing the annual Internal Audit Plan;
2. Conducting a review of the effectiveness of the internal control system, risk management system, and corporate governance practices, as well as evaluating the efficiency and effectiveness of the Company’s operations; Presenting and discussing internal audit reports to the Audit Committee, Board of Directors, and senior management;
3. Monitoring and ensuring that corrective actions have been implemented correctly and on time by management.