Internal Control System

Financial and Operational Control System Implemented In The Company

Internal control system is needed to realize integrated GCG practices. Internal control system includes financial and operational controls so that the Company always has the reliability of financial reports and information, compliance with the applicable regulations, as well as efficiency and effectiveness of operations.

The Company’s internal control system involves every governance organ including Board of Commissioners, Audit Committee, Board of Directors and all management team by referring to the principles of Internal Control Framework. The principles include control environment, risk assessment, control activities, information and communication and monitoring. Hence, the Company’s internal control system is aligned with The Committee of Sponsoring Organizations of the Treadway Commission (COSO) framework.

Evaluation of The Effectiveness of Internal Control System

The effectiveness of internal control system is regularly and continuously evaluated by Internal Audit Unit at corporate and operational levels in order to improve work coordination among control functions in the Company.

Management’s Statement of Adequacy of A Risk Management System

Management considers that the Company’s internal control system has been carried out adequately, which has been derived from the Code of Ethics, Policies, SOPs and Work Instructions that are synergized with the application of Key Performance Indicator (KPI) assessment. KPI is a tool for management so that all of the Company’s operational activities are integrated to achieve the targets set.