GCG Structure and Policy

COMMITMENT TO GOOD CORPORATE GOVERNANCE

Good Corporate Governance (GCG) encompasses the basic principles that guide the management processes and mechanisms of our Company, grounded in strict adherence to prevailing laws and regulations. GCG implementation also reflects our commitment to ethical business practices.

The Company is fully committed to implementing GCG by ensuring compliance are in line with regulatory compliances such as the Law No. 40 of 2007 on Limited Liability Companies along with all its derivative regulations, the Financial Services Authority (OJK) Regulation No. 3/ POJK.04/2021 on Capital Market Activities, OJK Regulation No. 21/POJK.04/2015 on the Implementation of Code of Corporate Governance of Public Companies, and the OJK Circular Letter No. 32/ SEOJK.04/2015 on Code of Corporate Governance of Public Companies.

GOOD CORPORATE GOVERNANCE PRINCIPLES

In implementing GCG, the Company adopts the latest principles outlined in the General Guidelines for Indonesian Corporate Governance (PUG-KI). The Company focuses on implementing GCG on the pillars of

1. Ethics (Ethical Behavior);
2. Transparency;
3. Accountability; and
4. Sustainability.

These values signify Sido Muncul's progressive approach in leading GCG best practices.

In implementing these principles, Sido Muncul upholds the highest standards of integrity and social and environmental responsibility. This approach considers efficiency and mutual benefits, as well as the creation of a culture of ethical behavior and accountability. Furthermore, the Company fosters transparent and responsible relationships with all stakeholders, rooted in the belief that ethical considerations should drive every decision and action.

CORPORATE GOVERNANCE ORGANIZATIONAL STRUCTURE

According to Law No. 40 of 2007 concerning Limited Liability Companies, Chapter I on General Provisions, Article 1, the Company's organs consist of the Shareholders and the General Meeting of Shareholders, the Board of Directors, and the Board of Commissioners.

LEGAL BASIS AND CORPORATE GOVERNANCE CODE

LEGAL BASIS

The Company implements GCG by referring to the following legal basis:

1. Law No. 40 of 2007 on Limited Liability Companies;
2. Financial Services Authority Regulation (POJK) No.21/ POJK.04/2015 on the Implementation of Code of Corporate Governance of Public Companies;
3. Financial Services Authority Circular Letter (SEOJK) No.32/SEOJK.04/2015 on Code of Corporate Governance of Public Companies.

CORPORATE GOVERNANCE GUIDELINES

The Company has the following GCG guidelines and policies (soft structure GCG):

1. Code of Corporate Governance of PT Industri Jamu Dan Farmasi Sido Muncul Tbk and its subsidiaries, which consists of:
   1. Guidelines and Company Code of Conduct;
   2. Board of Commissioners Manual (BOC Manual);
   3. Board of Directors Manual (BOD Manual);
   4. Anti-Bribery and Anti-Corruption Policy;
   5. Whistleblowing System;
2. Audit Committee Charter;
3. Internal Audit Charter;
4. Nomination and Remuneration Committee Charter;
5. The Company's Articles of Association;
6. Collective Labor Agreement (PKB); and
7. Standard Operating Procedures (SOPs) which are continuously evaluated and refined in line with the Company's business developments;

ASSESSMENT OF CORPORATE GOVERNANCE IMPLEMENTATION

The Company did not conduct any assessment on the implementation of GCG in the Company's environment in 2024. Therefore, this information is not presented in this Annual Report.