Anti-Corruption Policies

The Company is committed to implementing an anti-corruption policy to combat corrupt practices, kickbacks, fraud, bribery and/or gratification. The implementation of an anti-corruption policy is expected to lead to clean business practices free from bribery and corruption, which will protect the Company and all employees from negative impacts such as legal risks, financial losses, and negative reputation.

This policy also aims to increase awareness of all employees including the Board of Commissioners, members of the Board of Commissioners Committee, and the Board of Directors of the risk of corruption in business processes and to participate in efforts to prevent and avoid corrupt practices in the Company's environment. Overall, the implementation of this policy can maintain the trust of all shareholders, stakeholders, and the wider community.

In 2023, PT Kilang Pertamina Internasional (PT KPI) has obtained the ISO 37001:2016 Anti-Bribery Management System (SMAP) certificate for the corporate scope. This certification is a manifestation of PT KPI's commitment as a company that implements SMAP in its business processes and operational activities.

Appointment and Dismissal of the Audit Committee

Audit Committee members are appointed and dismissed by the Board of Commissioners. Membership of the Audit Committee consists of at least 1 (one) person from the Board of Commissioners and 1 (one) member who is not from the Board of Commissioners and is not an employee of the Company. The term of office of members of the Board of Commissioners who concurrent as Chairman and/or members of the Audit Committee is the same as the term of office of their appointment as members of the Board of Commissioners as determined by the GMS.

Meanwhile, the term of office of members of the Audit Committee who are not members of the Board of Commissioners is in accordance with the period stipulated in the Decree of the Board of Commissioners regarding their appointment without prejudice to the right of the Board of Commissioners to change it at any time as needed. Performance evaluation of each member of the Audit Committee who is not from the Board of Commissioners is carried out by the Chairman of the Audit Committee or the Board of Commissioners in accordance with applicable regulations.

Supplier Selection and Creditor Rights Policy

The Company is committed to fulfilling the rights of creditors by making timely payments of the principal and interest. For this reason, the Company manages liquidity and monitors the maturity time of principal and interest payments on loans. The Company’s ability to fulfill all obligations, both shortterm and long-term obligations, is measured through liquidity ratios and solvency ratios. Where the liquidity ratio is used to measure the Company’s ability to pay off short-term obligations, while the solvency ratio is used to measure the Company’s ability to fulfill all its obligations, both short-term and long-term obligations.

Supply chain governance is crucial for PT KPI. The Company's collaboration with partners and suppliers supports the smooth operation of the Company. In selecting business partners and suppliers, the Company has criteria ensuring that cooperation can be carried out synergistically and professionally, and complies with procurement governance principles such as transparency, competitiveness, and accountability.

PT KPI also considers sustainability principles in the supplier selection process by implementing several environmental and social criteria. Based on the Company's procurement policy, PT KPI prioritizes procurement that applies ESG management principles. One of the assessments conducted includes whether suppliers and business partners have environmental certifications such as ISO 14001 on Environmental Management and whether suppliers and business partners implement a Contractor Safety Management System (CSMS). CSMS is a system to ensure that contractors/third parties have complied with the HSE (Health, Safety, and Environment) management system applicable at Pertamina and are able to implement HSE requirements in the execution of work. The management system regulated in CSMS includes personnel safety and security, prevention of environmental pollution, understanding of high-risk environments, asset integrity, equipment operational safety, incident management, and social/corporate image impacts. Thus, the CSMS criteria applied by the Company cover both environmental and social aspects.

Vendor Capacity Enhancement Policy

The Company routinely carries out Vendor Day activities once a year. On this Vendor Day, GCG socialization is also carried out to vendors or providers of goods and services at PT KPI. This socialization is intended to create an understanding of Good Corporate Governance and a commitment to preventing fraud, bribery and corruption.

In addition, the Company also implements the Contractor Safety Management System (CSMS), a structured framework to ensure the safety of vendors working at the company's location. Through this CSMS, the Company has developed criteria for evaluating and selecting vendors based on safety performance, capabilities, and compliance with safety standards.

The Company has also established procedures for managing emergencies and coordinating response efforts between the company and contractors to ensure the safety of personnel and property. The implementation of this CSMS demonstrates a commitment to prioritizing safety in vendor operations and helps minimize the risks associated with outsourcing work to external parties. It also fosters a culture of safety and accountability among all stakeholders involved in the contracting process.