STRUCTURE AND MECHANISM OF CORPORATE GOVERNANCE

1. Prepare the Company’s organizational structure, along with detailed job description;
2. Holding the General Meeting of Shareholders on Ratification of the 2021 RKAP on January 29, 2021 and the General Meeting of Shareholders on the Annual Report on May 10, 2021;
3. Write off the books of bad debts, interest, fines, and/or fees which are then reported to the Board of Commissioners and get approval from the Shareholders;
4. Cooperating with third parties in various fields including business, operations and support;
5. Carry out educational activities in order to increase understanding of the world of ports;
6. Implement Good Corporate Governance in every business activity;
7. Representing the Company inside and outside the Court that binds the Company to other parties and/or other parties to the Company;
8. Regulate provisions regarding the Company’s employment including salary, pension, promotion, training, old age insurance, health insurance, etc;
9. Carrying out CSR activities In 2021, CSR funds have been distributed for social and environmental activities;
10. Perform other duties related to the management of the Company; and
11. Establish other policies for the Company in accordance with the laws and regulations.

PERFORMANCE APPRAISAL OF COMMITTEES UNDER BOARD OF DIRECTORS AND THE BASIS OF APPRAISAL

In carrying out its management duties, the Board of Directors is assisted by 2 (two) Committees under Board of Directors, consisting of Pelindo Bersih Committee and Governance, Risk Management and Compliance Committee. The performance evaluation of Committees under Board of Directors is carried out by the Board of Directors periodically with the criteria based on meetings and the implementation of duties that have been carried out during the fiscal year.

Throughout 2021, Board of Directors considered that the Committees under Board of Directors had carried out their duties and responsibilities well.

BOARD OF DIRECTORS RESIGNATION AND DISMISSAL MECHANISM

Members of Board of Directors are dismissed before their term of office ends for any of the following reasons:

1. Passed away;
2. Own request;
3. Transfer of assignment;
4. Physical and/or mental disabilities that result in not being able to carry out their duties properly;
5. Engage in criminal acts of crime;
6. Unable to carry out the task;
7. Does not carry out their duties properly;
8. Not applying the provisions in the Articles of Association; and
9. Other reasons that can be accepted by the GMS.