GOOD CORPORATE GOVERNANCE ASSESSMENT

To identify the effectiveness and measure the level of implementation of GCG practices in the business scope, the Company annually conducts a GCG assessment. The GCG assessment produces recommendations that can be used as a reference for the Company in continuously improving GCG practices in the Company. The procedure of Pelindo’s GCG assessment refers to several provisions, including:

1. Regulation of the Minister of SOEs No. PER-01/MBU/2011 dated August 1, 2011 concerning the Implementation of Good Corporate Governance in State-Owned Enterprises;
2. Regulation of the Minister of SOEs No. PER-09/MBU/2012 dated July 6, 2012 on Amendment to Regulation of the Minister of SOEs No. PER-01/MBU/2011 concerning the Implementation of Good Corporate Governance in State- Owned Enterprises;
3. Decree of the Minister of SOEs No. KEP-117/MMBU/2002 dated August 1, 2002 concerning the Implementation of Good Corporate Governance Practices in State-Owned Enterprises;
4. Decree of the Secretary of the Ministry of SOEs No. SK-16/S. MBU/2012 dated June 6, 2012 concerning Indicators/Parameters for Assessment and Evaluation of the Implementation of Good Corporate Governance in State-Owned Enterprises; and
5. Circular Letter of the Ministry of State-Owned Enterprises No. SE14/ MBU/2010 dated November 11, 2010 concerning Assessment and Review Program of GCG Implementation.

ASSESSMENT CRITERIA

GCG assessment for the 2020 fiscal year was carried out using the assessmentcriteriabasedontheDecreeofSecretaryofMinistry of State-Owned Enterprises No. SK-16/S.MBU/2012 dated June 6, 2012 concerning Indicators/Parameters of Assessment and Evaluation of the Implementation of Good Corporate Governance in SOEs. The indicators used in the GCG assessment are:

1. Commitment on sustainable implementation of good corporate governance;
2. Shareholders and GMS/Capital Owners;
3. Board of Commissioners/Supervisory Board;
4. Board of Directors;
5. Disclosure of information and transparency; and
6. Other aspects.