Good Corporate Governance Code

As PT Telekomunikasi Selular (the “Company”) continues to grow and face increasing business competition, the Company must manage and establish corporate policies effectively and efficiently to achieve excellent performance. This way, the Company can provide optimal and fair benefits to all stakeholders in accordance with applicable laws and regulations.

To achieve this goal, the Company has issued a Good Corporate Governance (“GCG”) Code as a reference for management and all employees in managing the Company.

Vision of GCG

1. To establish the Company as the best digital telecommunications service provider in Indonesia through excellent GCG management;
2. To make the Company a leading example of GCG implementation, inspiring other companies in Indonesia to adopt GCG practices.

Mission of GCG

1. To develop and maintain an integrated and comprehensive GCG system that adds value to all aspects of the Company’s business operations;
2. To apply GCG as a core principle in conducting business activities, integrating it into all processes and systems within the Company and each of its units;
3. To provide adequate assurance that all Company activities will consistently align with GCG standards, thus effectively and efficiently achieving the Company’s goals and objectives.

The Company's GCG is built on five principles:

1. Transparency
   Transparency in the decision-making process and in disclosing material and relevant information about the Company.
2. Accountability
   Clarity of functions, execution, and responsibilities of the Company's organs to ensure effective management of the Company.
   As a form of accountability, the Company ensures that: (i) financial reporting is transparent, accurate and timely in accordance with international financial standards; (ii) there is a policy regarding data disclosure to stakeholders; (iii) internal and external audit practices are implemented periodically to ensure accountability.
3. Responsibility
   Compliance with laws and regulations and adherence to good corporate principles in managing the Company.
4. Independency
   The state where the Company is managed professionally, free from conflicts of interest and undue influence or pressure from any party, in accordance with laws and good corporate principles.
5. Fairness
   Justice and equality in fulfilling the rights of stakeholders arising from agreements and legal regulations.

To realize GCG practices in the Company according to its vision and mission, several integrated systems need to be established. The following are some of the elements in achieving GCG in the Company:

1. Work and Business Ethics
   Work and business ethics are guidelines on ethical behavior that encompass the Company's ethical values governing internal and external relationships. They form one of the foundations for the Company's journey towards a world-class reputation and becoming a trusted company. In addition, the Company also establishes guidelines for engaging with other stakeholders like employees, suppliers, and the community in its business activities as a form of stakeholders engagement.
2. Policies and Procedures
   Policies and procedures are documents that are accessible and understandable to all employees, serving as a guide for conducting business and daily work correctly.
3. Internal Supervision and Control
   Internal supervision and control functions to ensure that the Company operates in accordance with established policies and supports the achievement of the Company's goals, including information security management. This is done by mitigating business risks that could significantly impact the Company's success.

To realize effective GCG practices, certain pillars are essential for supporting its implementation. These pillars include:

1. Effective Leadership
   The Company’s leadership must serve as role models in applying GCG principles and ensure that the Company's operations achieve high performance targets while complying with all applicable laws and regulations.
2. Clarity of Duties and Responsibilities
   The Company establishes organizational policies that outline the duties and responsibilities of each employee position, as well as internal control procedures based on the principle of segregation of duties. This principle ensures transactional caution through the separation of functions or assigning different key functions to different individuals. In addition, the matters that must be approved by shareholders and the decision-making procedures have also been regulated in the Company’s Articles of Association.
3. Management Capability and Employee Competence
   The Company develops technical competence, fosters management skills and leadership, and builds competencies including understanding GCG principles such as risk management, internal control, regulatory knowledge, and audit management, in addition to technical competence.
4. Effective Performance Evaluation and Monitoring
   The Company conducts ongoing, comprehensive, tiered, and periodic performance evaluations to measure the achievement of plans and performance. Performance evaluations result in corrective actions for deviations from targets and consider relevant issues that may affect the Company’s success. In addition, the Company also establishes procedures for periodic evaluation of the performance of the board and management, as well as mechanisms for monitoring compliance through regular reviews, reporting and meetings.
5. Consistency in Rule Application
   The Company implements applicable regulations consistently, fairly, transparently, and impartially, and establishes clear and firm methods for measuring the reward and punishment system within the Company.