STRUCTURE AND MECHANISM OF CORPORATE GOVERNANCE

ORIENTATION PROGRAM FOR NEW BOARD OF COMMISSIONERS

The provisions regarding the induction program for members of Board of Commissioners are as follows:

1. Members of Board of Commissioners who are appointed for the first time must be given an induction program regarding the Company;
2. The responsibility for conducting the induction program rests with the Corporate Secretary or anyone who performs the function as the Corporate Secretary;
3. The induction program includes:
   1. Implementation of GCG principles by the Company;
   2. An overview of the Company in relation to the objectives, nature and scope of activities, financial and operating performance, strategies, short-term and long-term business plans, competitive position, risks, and other strategic issues;
   3. Information related to delegated authority, internal and external audit, internal control systems and policies, including the Audit Committee; and
   4. Information regarding the duties and responsibilities of Board of Commissioners and Board of Directors as well as other prohibited matters.
4. The Company’s induction program can be in the form of presentations, meetings, visits to Company facilities and review of documents or other programs deemed appropriate to the Company;
5. The Company’s induction program is carried out no later than 90 (ninety) calendar days after the GMS decides on the appointment of new members of Board of Commissioners.

The orientation program for new Commissioner has been carried out on October 4, 2021 and December 10, 2021.

BOARD OF COMMISSIONERS RECOMMENDATIONS AND DUTIES IMPLEMENTATION

The followings are the Board of Commissioners’responses, advice, recommendations and approvals in 2021:

1. Approval of write-off and write-off for interest receivables and fines on loans from PT PMLI to PT Pelabuhan Indonesia II (Persero);
2. Performance appraisal of the secretarial staff of Board of Commissioners in 2019;