STRUCTURE AND MECHANISM OF CORPORATE GOVERNANCE

BOARD OF DIRECTORS PERFORMANCE APPRAISAL

COLLEGIAL BOARD OF DIRECTORS PERFORMANCE APPRAISAL

PROCEDURE OF BOARD OF DIRECTORS PERFORMANCE APPRAISAL

Collegial management of the Board of Directors

Collegial evaluation of the Board of Directors KPI begins with mapping the data source and data producer unit, then filling in the KPI realization data on KPI measurement working paper. If it is not achieved, then the data owner must convey the justification for the KPI not being achieved along with other supporting documents to the Strategic Planning Group.

The achievements of the Board of Directors collegial KPI are reported on a regular basis as an integral part of the Management Report. The Board of Directors KPI Achievement Report in a collegial manner which is integrated in the Management Report will be evaluated by the Audit Committee and the Board of Commissioners responses on the KPI are then submitted to the Board of Directors. Collegial KPI assessment of Board of Directors is carried out referring to the results of measurements by the External Auditor that audits the Companys Financial Statements for the year concerned with the provision that the final realization of each KPI variable is a maximum of 110% (one hundred and ten percent).

CRITERIA OF BOARD OF DIRECTORS PERFORMANCE APPRAISAL

The Board of Directors collegial KPI for 2021 consists of the following:

1. Economic and Social Value for Indonesia Financial
   1. ROIC-WACC;
   2. Cash From Operations (CFO);
   3. Maximum Loss from Exchange Rate to Operating Income;
   4. Interest Bearing Debt to Invested Capital;
   5. Interest Bearing Debt to EBITDA;
   6. Operational;
   7. Throughput;
      • Container Throughput;
      • Non-Container Throughput.
   8. B/S/H (gross);
   9. Waiting Time;
   10. Social;
   11. Benefits of community welfare around the port.