GCG Structure and Policy

Good Corporate Governance (GCG) embodies the foundational 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.

As a public Company listed on the Indonesia Stock Exchange, we are fully committed to implementing GCG, ensuring our operations 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 regarding Capital Market Activities, OJK Regulation No. 21/ POJK.04/2015 on the Implementation of Guidelines for Governance of Public Companies, and the OJK Circular Letter No. 32/ SEOJK.04/2015 on Governance Guidelines for Public Companies.

Furthermore, the Company has adopted the GCG practices based on the 2021 General Guidelines for Corporate Governance in Indonesia (PUG-KI), issued by the National Committee on Governance Policy (KNKG), and the ASEAN Corporate Governance Scorecard (ACGS). This adoption of GCG practices, which aligns with the best industry standards, demonstrates Sido Muncul's ongoing commitment to staying abreast of the latest developments in GCG implementation.

PRINCIPLES OF GCG IMPLEMENTATION

The Company has demonstrated its commitment to Good Corporate Governance (GCG) by adopting the latest principles outlined in the General Guidelines of Indonesia Corporate Governance (PUG-KI). The Company's focus is centered around four pivotal pillars: ethical behavior, accountability, transparency, and sustainability. This move marks a significant advancement from the previous application of the basic 'TARIF' values - Transparency, Accountability, Responsibility, Independence, and Fairness -, signifying Sido Muncul’s progressive stance in leading GCG best practices.

In implementing these principles, Sido Muncul upholds high standards of integrity and social and environmental responsibility. This approach underscores its devotion to not only maintaining an efficient and profitable business but also ensuring ethical conduct and accountability. 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

In accordance with 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.

FOUNDATION AND GUIDELINES FOR THE COMPANY'S GCG

As a guide for the best implementation of Good Corporate Governance (GCG), the Company refers to the Law no. 40 of 2007 concerning Limited Liability Companies, Financial Services Authority Regulation (POJK) No. 21/POJK.04/2015 on the Implementation of Guidelines for Publicly Listed Companies and the Financial Services Authority Circular (SEOJK) No. 32/ SEOJK.04/2015 on the Governance Guidelines for Publicly Listed Companies. In addition, the Company has established its own GCG guidelines and policies (GCG softstructure) to guide all Company personnel in implementing the best GCG practices in every business activity, including:

1. Guidelines on Corporate Governance of PT Industri Jamu Dan Farmasi Sido Muncul Tbk and subsidiaries consisting 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. Guidelines for the Audit Committee's Work;
3. Internal Audit Charter;
4. Guidelines for the Work of the Nomination and Remuneration Committee;
5. Company's Articles of Association;
6. Collective Labor Agreement (PKB), and Standard Operating Procedures (SOPs) which are continuously evaluated and refined in line with the Company's business developments;