Audit Committee Guidelines and Work Rules

I. GENERAL PROVISIONS
In these Guidelines and Work Procedures, what is meant by:

  1. Bank is a Company;
  2. Commissioner is the Commissioner of the Company;
  3. The Board of Directors is the Board of Directors of the Company;
  4. The Committee is the Company's Audit Committee.

II. MISSION
To provide an independent and objective view to the Management and the Board of Commissioners in the implementation/implementation of Good Corporate Governance in the Bank, especially those related to Audit activities.

III. DUTIES AND RESPONSIBILITIES
The main duties of the Committee are as follows:

  1. Monitoring and evaluating the planning and implementation of the audit as well as monitoring the follow-up to the audit results in order to assess the adequacy of internal control, including the adequacy of the financial reporting process.
  2. Monitoring and evaluating the planning and implementation of the audit as well as monitoring the follow-up to the audit results in order to assess the adequacy of internal control, including the adequacy of the financial reporting process.
  3. In order to carry out the tasks referred to in number (1) above, the Committee at least conducts monitoring and evaluation of:
    1. implementation of the duties of the Internal Audit Work Unit;
    2. conformity of the audit by the Public Accounting Firm with the applicable audit standards;
    3. conformity of financial statements with applicable accounting standards;
    4. implementation of follow-up by the Board of Directors on the findings of the Internal Audit Unit, public accountants, and the results of supervision from Bank Indonesia, in order to provide recommendations to the Board of Commissioners;
  4. Provide recommendations regarding the appointment of Public Accountants and Public Accounting Firms to the Board of Commissioners to be submitted to the General Meeting of Shareholders.
  5. Recommendations from the Committee must be submitted to the Board of Commissioners for approval.

IV. COMMITTEE STRUCTURE AND MEMBERSHIP

  1. Committee members, at least consisting of:
    1. An Independent Commissioner
    2. an independent party with expertise in finance or accounting
    3. An independent party with expertise in law or banking
  2. The Committee is chaired by an Independent Commissioner
  3. Members of the Board of Directors are not allowed to become members of the Committee.
  4. Independent Commissioners and Independent Parties who are members of the Committee are at least 51% (fifty one percent) of the total members of the Committee.

V. COMMITTEE RULES

  1. Committee meetings are held at least 4 (four) times in 1 (one) year, or more if deemed necessary by the Committee in accordance with the needs of the Bank;
  2. Committee meetings can only be held if attended by at least 51% (fifty one percent) of the total members, including an Independent Commissioner and an Independent Party;
  3. Committee meeting decisions are made based on deliberation and consensus
  4. In the event that consensus deliberation does not occur, the decision is made based on a majority vote;
  5. In the event that a majority vote is not achieved, the Committee Meeting must be repeated and attended by all members of the Committee;
  6. The results of the Committee meeting must be stated in the minutes of the meeting and properly documented
  7. Dissenting opinions that occur in Committee meetings must be clearly stated in the minutes of the meeting along with the reasons for the dissenting opinions.

VI. AUTHORITY OF THE COMMITTEE

  1. In carrying out its duties and responsibilities, the Committee can obtain the necessary advice and assistance, either from internal or external auditors;
  2. The authority to investigate matters within the scope of duties and responsibilities;
  3. The authority to access the required sources, information and documents in accordance with their duties and responsibilities.

VII. ETC

  1. The Committee Secretariat will be assisted by a Unit that carries out the functions of the Corporate Secretary;
  2. These guidelines and work rules must be known and are binding on each member of the Committee;
  3. The Committee will review these Guidelines and Code of Conduct as needed.