The Audit Committee is the Company's organ that assists the Board of Commissioners in supervising the effectiveness of the internal control system, internal audit and financial reporting processes. In addition, the Audit Committee was formed to support the Company in implementing GCG principles.

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Audit Committee Membership

The establishment of the Audit Committee is based on the Decision of the Company's Board of Commissioners Meeting Decision No. 002/MCI/SK-DK/I-VIII/17 dated August 16, 2017. The term of office of the members of the Audit Committee shall not exceed the term of office of the members of the Board of Commissioners. Members of the Audit Committee who are not members of the Company's Board of Commissioners may have their term extended once of 2 (Two) periods, without affecting the Board of Commissioners' right to dismiss them at any time.

The Company implemented changes to the membership composition of the Company's Audit Committee on 19 June 2024 based on the statement of the BOC of the Company No. 046/MCI/SK-DK/E-VI/24. The composition of the members of the Audit Committee as of December 31 2024, is as follows:

1. Fauzi Sjam – Chairman (2024 - 2027)
2. Sari Damayanti – Member (2022 - 2027)
3. Karlina – Member  (2022 - 2027)

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Audit Committee Charter

In carrying out its duties and responsibilities, the Audit Committee adheres to the Audit Committee Charter, which was established on August 16, 2017.

Audit Committee Duties and Responsibilities
The Company’s Audit Committee has the duties and responsibilities to:
1. Conduct a review of financial information, including financial statements, projections and other reports to be issued by the Company to the public and/or regulatory authorities, including but not limited to
2. Examine compliance with prevailing regulations related to the Company’s business activities
3. Provide an independent opinion should there be a discrepancy of opinion between the Management and the Accountant on services rendered by the latter
4. Conduct an analysis of the independence, objectivity, scope of assignment and fees of the public accountant and provide recommendations to the Board of Commissioners regarding the appointment and dismissal of the public accountant
5. Examine the implementation of the audit by internal auditors and supervise follow-up measures implemented by the Board of Directors for each finding of the internal auditors
6. Examine the risk management activities performed by the Board of Directors, if the Company does not yet have a risk monitoring function under the Board of Commissioners
7. Review the risk management activities carried out by the Board of Directors if the Company does not have a risk monitoring function under the Board of Commissioners
8. Review complaints related to the Company's accounting and financial reporting processes
9. Review and provide advice to the Board of Commissioners regarding potential conflicts of interest within the Company
10. Maintain the confidentiality of the Company's documents, data and information and refrain from using such information for personal gain or in any manner that is against the law or detrimental to the Company

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In addition, in carrying out its duties and responsibilities, the Audit Committee has the authority to:
1. Access documents, data and information belonging to the Company, which are related to Company employees, funds and assets
2. Directly engage with Company employees, including the Board of Directors and the parties responsible for conducting internal audit and risk management functions, as well as the accountant, in relation to the duties and responsibilities of the Audit Committee
3. Involve independent parties outside of the Audit Committee, when required, to assist in the execution of its duties if necessary
4. Perform any other authority vested to it by the Board of Commissioners

All committee members, both current and former, must maintain the confidentiality of the documents, data and information belonging to the Company obtained from both internal and external parties while they are or were in office as committee members and may only use such confidential information in the interest of executing their duties.

 

Audit Committee Independence

The Audit Committee carries out its duties and responsibilities in accordance with the Audit Committee Charter by maintaining the principle of independence. All members of the Audit Committee come from independent external parties. The statement of independence of the Audit Committee is shown in the following table of fulfillment of the independence aspects:

a. Not a person in a public accounting firm, legal consulting firm, public appraiser service office or other party providing assurance services, non - assurance services, appraisal services and/or other consulting services to the issuer or public company concerned within the last 6 months

b. Not a person who works or has the authority and responsibility to plan, lead, control or supervise the activities of the issuer or public company within the last 6 months, except for an Independent Commissioner

c. Does not own shares directly or indirectly in Issuers or public companies

d. Has no affiliation with members of the Board of Commissioners, members of the Board of Directors or Major Shareholders of issuers or public companies

e. Does not have a direct or indirect business relationship related to the business activities of the issuer or public company

 

Audit Committee Meetings

The Audit Committee must hold an internal meeting at least once every 3 months. In 2023, the Audit Committee held 4 meetings.

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Audit Committee Competency Development

To add insight, competence, and expertise, the Company provides opportunities for each member of the Audit Committee to participate in various competency development activities, such as seminars, workshops, training held by both internal and external parties, as needed. In addition, each member of the Audit Committee continues to develop competence independently through books or the internet.

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In 2024, the Company's Audit Committee did not attend any training because the Company's focus in 2024 emphasized internal oversight.

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​Implementation of Audit Committee Activities in the Financial Year

During 2024, the Audit Committee has carried out tasks including:
1. Conducting a review of financial information, including financial statements, projections and other financial reports to be released by the Company to the public and/or regulatory authorities
2. Reviewing compliance with laws and regulations related to the Company's activities
3. Providing an independent opinion in the event of a disagreement between management and the accountants regarding the services provided
4. Analyzing the independence, objectivity, scope of work and fees of the public accountant and providing recommendations to the Board of Commissioners regarding the appointment and dismissal of the public accountant
5. Reviewing the execution of internal audit examinations and monitoring follow-up actions taken by the Board of Directors based on internal audit findings
6. Reviewing the risk management activities carried out by the Board of Directors if the Company does not have a risk monitoring function under the Board of Commissioners
7. Examining complaints related to the Company's accounting and financial reporting processes