Internal Control System

The internal control system in the Company includes all policies and procedures in all financial and operational functions that aim to protect company assets through reliable financial reporting and information, compliance with applicable regulations, and the implementation of effective and efficient operational activities.

The Company’s internal control system involves every governance organ, including the Board of Commissioners, the Audit Committee, the Board of Directors, and all management teams, by referring to the principles of the 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.

Review of the Effectiveness of Internal Control System

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

Statement of the Board of Commissioners on the Adequacy of Internal Control System

Based on the evaluation of the Audit Committee, the Board of Commissioners considers that the Company’s internal control system has been implemented adequately, which was derived from the Code of Conduct, 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 the Company’s operational activities are integrated to achieve the targets set.