STRUCTURE AND MECHANISM OF CORPORATE GOVERNANCE

BOARD OF COMMISSIONERS AND BOARD OF DIRECTORS NOMINATION AND REMUNERATION

PROCEDURE OF BOARD OF COMMISSIONERS AND BOARD OF DIRECTORS NOMINATION

In the nomination process, the Company's Board of Commissioners and Board of Directors refer to the Regulation of Minister of SOEs PER-10/MBU/10/2020 dated October 9, 2020 on Amendment to the Regulation of Minister of State-Owned EnterprisesPER-02/MBU/02/2015concerningRequirementsand Procedures for the Appointment and Dismissal of Members of Board of Commissioners and Supervisory Board of State-Owned Enterprises and the Regulation of Minister of SOEs PER-03/ MBU/02/2015 dated February 17, 2015 concerning Requirements and Procedures for the Appointment and Dismissal of Members of Board of Directors of State-Owned Enterprises.

Candidates for Board of Commissioners and Board of Directors are proposed through the Board of Commissioners assisted by the Remuneration and Nomination Committee. The prospective candidate who will be appointed as a candidate for Board of Commissioners and Board of Directors is a person who has been declared to have fulfilled the formal requirements, material requirements and other requirements and passed the Fit and Proper Test (UKK). The appointment of Board of Directors and Board of Commissioners is carried out through the GMS Resolution.