Internal Audit

The Company has established an Internal Audit Unit in accordance with POJK No. 56/POJK.04/2015 on the Establishment and Guidelines for the Preparation of the Internal Audit Unit Charter and Stock Exchange Listing Regulations.

The Internal Audit Unit serves as a part of internal control, which in general aims to help management realize its targets through an adequacy examination of the implementation of internal control processes, risk management, and corporate governance.

APPOINTMENT AND DISMISSAL OF THE HEAD OF THE INTERNAL AUDIT UNIT

The appointment and dismissal of the Head of the Internal Audit Unit has been regulated in the Company's Internal Audit Unit Charter. Based on the Internal Audit Unit Charter, the head of the Internal Audit Unit work unit is appointed and dismissed by the President Director with the approval of the Board of Commissioners and reported to the OJK.

PROFILE OF THE HEAD OF INTERNAL AUDIT

Based on the Decree of the Board of Directors No. 002/SM/ SKDIR/VI/2022 dated June 30, 2022 and the Approval Letter of the Board of Commissioners No. 001/SP-DEKOM/VI/2022 dated June 28, 2022, the Company appointed Joni Susanto Agus as the Head of the Internal Audit Unit. In 2024, there was no change in the Head of the Company's Internal Audit Unit.

ORGANIZATIONAL STRUCTURE AND POSITION OF THE INTERNAL AUDIT UNIT

Structurally, the Internal Audit Unit provides accountability reports to the President Director and functionally has direct communication access to the Audit Committee to cooperate, coordinate, and deliver information related to the implementation and results of the audit. Additionally, the Internal Audit Unit has access to communicate with all units within the Company to request information, clarification, and files or reports related to internal audit activities.

In 2024, the Internal Audit Unit had 5 (five) personnel, consisting of 1 (one) Head of the Internal Audit Unit and 4 (four) members.

PROFESSIONAL EXPERTISE AND REQUIREMENTS

Based on article 6 of POJK No. 56.POJK.04/2015, requirements for the Company's Internal Audit Unit are as follows:

1. Have integrity and behavior that is professional, independent, honest, and objective in carrying out its duties;
2. Have knowledge and experience regarding audit techniques and other disciplines relevant to its field of work;
3. Have knowledge of laws and regulations in the capital market and other related laws and regulations;
4. Have the ability to interact and communicate both verbally and in writing in an effective manner;
5. Comply with professional standards issued by the internal audit association;
6. Comply with the internal audit code of conduct;
7. Shall maintain the confidentiality of Company information and/or data related to the implementation of Internal Audit duties and responsibilities, unless required by laws and regulations or a determination/ decision of justice;
8. Understand the principles of good corporate governance and risk management; and
9. Willing to continuously improve their knowledge, expertise and professionalism.

INTERNAL AUDIT UNIT PROFESSIONAL CERTIFICATION

The Company's Internal Audit Unit is provided with facilities in the form of a systematic and tiered competency development program. The program is carried out by involving internal auditors in the certification program. In 2024, the Internal Audit Unit Member who has expertise certification is 1 (one) person, or 20% of the total number of Internal Audit Unit employees, which is 5 (five) people.

The certification held by members of the Internal Audit Unit is:

• Qualified Internal Auditor (QIA) from the Internal Audit Education Foundation, by Joni Susanto Agus

Furthermore, the Company is committed to continuously improving the quality of internal audits within the Company by gradually increasing the certification level of Internal Audit Unit employees over the next few years.

INTERNAL AUDIT UNIT CHARTER

In carrying out its functions, the Internal Audit Unit adheres to the Internal Audit Charter issued on June 18, 2013 and last updated on June 28, 2022. The Internal Audit Unit Charter contains the following:

1. Definition;
2. Mission;
3. Objectives;
4. Core Principles;
5. Structure and Position;
6. Membership;
7. Internal Auditor Requirements and Qualifications;
8. Scope;
9. Duties and Responsibilities;
10. Authorities;
11. Independence, Objectivity, and Professionalism;
12. Competence, Due Professional Care, and Continuing Professional Development;
13. Code of Conduct; and
14. Reporting Activities

Download: Internal Audit Charter 2022 (PDF, 11MB)

DUTIES AND RESPONSIBILITIES OF THE INTERNAL AUDIT UNIT

Duties and responsibilities of the Internal Audit Unit are as follows:

1. Create an annual audit plan based on risk, annual staff plan and needs and the Internal Audit Unit budget for approval by the President Director and the Audit Committee. If there are significant changes to the plan that has been submitted, the Head of Internal Audit must submit the changes along with the revised plan to the President Director and the Audit Committee;
2. Assess the adequacy, test, and evaluate the internal control mechanism and risk management system in accordance with Company policy;
3. Assess the effectiveness and efficiency of control procedures implemented in finance, accounting, operations, human resources, marketing, and information technology and other activities;
4. Provide suggestions for improvement and objective information on activities audited at all levels of management;
5. The Internal Audit Unit is responsible for submitting reports on audit activities and findings to the President Director and the Board of Commissioners through the Audit Committee;
6. Monitor, analyze, and report on the implementation of follow-up improvements that have been suggested;
7. The Internal Audit Unit cooperates with the Audit Committee so that the Audit Committee can carry out its role in accordance with applicable regulations;
8. Prepare a program to evaluate the quality of internal audit activities;
9. Conduct special audit if necessary;
10. The Internal Audit Unit is responsible for carrying out ad-hoc assignments given by the President Director or the Audit Committee as long as they do not contain any conflict of interest;
11. The Head of Internal Audit must assess the skills, understanding, and knowledge of audit staff in relation to the audit work to be carried out. If the Internal Audit Unit does not have adequate skills, understanding, and knowledge for a particular matter, the Head of the Internal Audit Unit must report to the President Director and the Audit Committee to then appoint an independent third party.

Periodically, the implementation of the Internal Audit Unit's duties is evaluated and improved by adjusting to the internal control system, risk management and corporate governance so that the Company can achieve its goals effectively and efficiently.

IMPLEMENTATION OF THE INTERNAL AUDIT UNIT DUTIES IN 2024

As of December 31, 2024, the Internal Audit Unit has carried out the following duties:

1. Implementing the annual Internal Audit Plan;
2. Reviewing the effectiveness of the internal control system, risk management system and corporate governance practices, and evaluate the efficiency and effectiveness of the Company's operations;
3. Submitting and discussing internal audit reports to the Audit Committee, Board of Directors, and senior management;
4. Monitoring and ensuring that corrective actions have been implemented correctly and in a timely manner by management.