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EN | ID
  • Home
  • About Us
    • Who We Are
      • Company Profile
      • Vision and Mission
      • Organizational Structure
      • Shareholding
    • Our Business
      • Plantations
      • Mills
      • Locations
    • Integrated Business Process
    • Corporate Leadership
  • Investor Relations
    • Company Release
    • General Meeting of Shareholders
    • Annual Report
    • Financial Statements
    • Financial Highlights
    • Prospectus
  • ESG
    • Sustainability
      • Sustainability Defined
      • STA Resources Sustainability Policy
      • STA Resources Sustainability Policy Implementation - Key Points
      • Certifications and Awards
      • Sustainability Reporting
    • Corporate Social Responsibility
      • Human Right Policy
      • Social activities
    • Good Corporate Governance
      • Committee
      • The Board of Directors Charter
      • The Board of Commisioners Charter
      • Corporate Secretary
      • Supporting Institutions
      • Code of Conduct
      • Risk of Management
      • Audit Committee Charter
      • ESG Committee Charter
      • Internal Audit Charter
  • News
  • Contact
  • Career
  • Committee
  • The Board of Directors Charter
  • The Board of Commisioners Charter
  • Corporate Secretary
  • Supporting Institutions
  • Code of Conduct
  • Risk of Management
  • Audit Committee Charter
  • ESG Committee Charter
  • Internal Audit Charter

AUDIT COMMITTEE CHARTER


  1. GENERAL
    1. This Audit Committee Charter is designated by the Baord of Commissioners to serve as guidance for the Audit Committee in its role and responsibilities on the principles of transparency, accountability, competency, and independence to ensure the Company is led, managed, and operated in accordance with the prevailing provisions of laws and regulations;
    2. This Charter will be reviewed and assessed annually by the Audit Committee and any proposal of amendments shall be delivered to theh Board of Commissioners for approval;
    3. The Company is obliged to have an Audit Committee Charter and to publish the Audit Committee Charter and other required information on the website of the Company.
  2. BACKGROUND
    The Company must have an Audit Committee established by the Board of Commissioners pursuant to the following regulations:
    1. Resolution of the Board of Directors of Indonesian Stock Exchange, Bursa Efek Indonesia (BEI) No. Kep-00001/BEI/0202014 regarding Amendments to Regulation Number I-A date of issue 20th January 2014 on “Listing og Equity Share and Stock apart from Shares Issued by Listed Company”;
    2. Regulations of the Financial Services Authority, Otoritas Jasa Keuangan (OJK) No. 55POJK.04/2015 dated 23th December 2015 on “Establishment of and Task Execution Guidelines for Audit Committee.”
  3. ORGANIZATIONAL STRUCTURE

    The organizational structure of Audit Committee consists of a Chairman and member(s) of the Committee. The chairman is appointed from among Independent Commissioner(s) or Commissioner(s) that can act independently. The member(s) of the Audit Committee are other Commissioner(s) or third parties. Members of the Audit Committee shal consis of 2 (two) persons with knowledge and background in Accounting or Financial Management and must have extensive knowledge on company business management. A member of the Audit Committee is appointed for a maximum of 3(three)-year period of term of office and may afterwards be re-appointed for the a maximum of 2(two)-year period of the following term of office.

  4. CRITERIA AND CODE OF CONDUCT
    1. The individual that can be appointed as the Chairman of the Audit Committee must fulfill the requrements as follows:
      1. is not a person working or having authorities and reponsibilites to plan, lead, control or supervise the activities of the Company within a period of the last 6 (six) months;
      2. does not own any shares in the Company, either directly or indirectly;
      3. does not have any affiliate relationship with the Company, members of the Board of Commissioners, members of the Board of Directors, or the main shareholders of the Company; and
      4. does not have any business relationship, directly or indirectly, relating to the Company’s business activities.
    2. Those who may be appointed as Members Audit Committee are individuals fulfilling the requirements:
      1. have a good integrity and possesses adequate knowledge and work experience in supervision/auditing;
      2. have knowledge and background in Accounting or Financial Management and must have extensive knowledge on company business management;
      3. comply with the Code of Conduct of the Audit Committee as set forth by the Company;
      4. does not have any conflict of interest/personal ties potentially causing conflict of interest against the Company, including but not limited to: having third-degree kinship, vertically or horizontally, with any members of the Board of Commissioners and members of the Board of Directors;
      5. possesses effective communication skills;
      6. not an employee, a customer or a supplier of the Company;
      7. does not belong to any institutions that provides services to the Company within the last 6 (six) months;
      8. does not own any shares in the Company, either directly or indirectly;
      9. does not have any affiliate relationship with the Company, members of the Board of Commissioners, members of the Board of Directors, or the main shareholders of the Company; and
      10. does not have any business relationship, directly or indirectly, relating to the Company’s business activities.
    3. In fulfilling their duties, all members of the Audit Committee must adopt the attitude and behavior that uphold the Code of Conduct as follows:
      1. honest, objective and independent and trustworthy;
      2. loyal to the Company and does not have any involvement in any actions infringing the laws;
      3. professional, responsible and prioritizing the Company’s interests;
      4. avoiding any matters that are against the objectives of the Company or those potentially influencing objectivity
      5. not using the Company’s data/information to take actions against the Company’s interests;
      6. verifying the validity and competency of the data being used for assessment so as to produce competent and accountable recommendations.
  5. DUTIES, RESPONSIBILITIES AND AUTHORITIES
    1. Duties and Responsiblities:

      The Audit Committee is in charge of providing independent professional insights for the Board of Commissioners regarding reports or other matters submitted by the Board of Directors to the Board of Commissioners to assist the Board of Commissioners in the supervision responsibilities, including identifying matters that require the attention of the Board of Commissioners and performing other tasks assigned by the Board of Commissioners i.e:

      1. Conducting analysis on the level of compliance with the prevailing provisions of laws and regulations in the Capital Market sector and prevailing provisions of laws and regulations in the Capital Market sector and those concerning the Company’s operations;
      2. Ensuring the quality of the Company’s financial accounting reports, implementation of accounting standards and risks attaching to the Management Reports.
      3. Assessing the adequacy of information disclosure and whether disclosure of such has implemented the principles of Good Corporate Governance (GCG);
      4. Assessing the adequacy of the internal control system and analyzing the execution of auditing by internal auditors and supervising the execution of follow-up by the Board of Directors on the findings of internal auditors;
      5. Conducting analysis and providing recommendation to the Board of Commissioners on potential conflict of interests related to the Company;
      6. Protecting the confidentiality of documents, data and information concerning the Company;
    2. Authorities:
      In performing its duties, the Audit Committee is entitled to authorities as follows:
      1. Accessing the Company’s documents, data and information on employees, funds, assets and other necessary resources;
      2. Communicating directly with the employees, including the Directors and the parties conducting the internal audit, risk management and accounting functions relevant to the duties and responsibilities of the Audit Committee;
      3. Engaging independent parties outside the Audit Committee needed to assist with the execution of the Audit Committee’s duties (if necessary);
      4. Exercising other authorities granted by the Board of Directors.
  6. WORK PROTOCOL AND PROCEDURE
    The Audit Committee designs and executes “Audit Committee Meeting Plan” which is the Audit Committee’s work plan and procedure containing:
    1. Schedule of meetings
    2. Frequency of meetings with relevant parties such as : Company’s Management, internal auditor, independent accountant and other parties alikethrough out the current year,
    3. Matters/topics to be discussed in such meetings.
    The agenda of the meetings shall include but not limited to financial and other reports concerning the Company’s financial information, independent accountant, internal auditors and the like.
  7. MEETINGS OF THE AUDIT COMMITTEE
    The Audit Committee must hold the meetings at least once in 3(three) months:
    1. Meetings can be conducted if attended by more than 1/2 (one half) of the numbers of the members;
    2. The Resolution of the Meetings of the Audit Committee is obtained based on amicable discussion to reach concencus
    3. Each Meetings of the Audit Committee must be contained in the minutes of meetings including in the event that there are dissenting opinions, signed by all members of the Audit Committee present and delivered to the Board of Commissioners.
  8. REPORTING
    The Audit Committee must report to the Board of Commissioners concerning each task assigned.
    1. The Audit Committee must prepare the Annual Audit Committee Report for the Board of Commissioners regarding the Audit Committee’s activities which shall be presented in the Company’s Annual Report, containing matters as follow:
      1. The Composition of the Audit Committee, including names, positions, and independency status.
      2. The objectives and scope of the Audit Committee’s tasks.
      3. The number of Meetings of the Audit Committee conducted during the current year and the attendance details of each member of the Audit Committee;
      4. A summary the execution of the Audit Committee’s of duties and responsibilities throughout the current year, including but not limited to:
        1. Violations of the prevailing provisions of laws and regulations conducted by the Company (if any);
        2. Mistakes/faults in the preparation of financial reports, internal control and independency of the Company’s auditor (if any);
        3. Analysis on the total execution of the compensation packages for the Directors and Commissioners as to stipulated in the RUPS.
      5. Conclusion or Insights
    2. The Company must disclose to the Financial Services Authorization (OJK- Previously Bapepam) information on the appointment and dismissal of the Audit Committee no later than 2 (two) working days after such appointment of dismissal;
    3. Such information on the appointment and dismissal of the Audit Committee must be published on the Company’s website.
  9. PROVISIONS ON HANDLING OF COMPLAINT OR REPORT ON ALLEGED INFRINGEMENT CONCERNING FINANCIAL REPORT

    The Audit Committee shall conduct a study in the event that there is any member(s) of the staff reporting any infringements concerning financial reports and other matters and ensure that an independent investigation has been conducted on such report and adequate measures of follow-up has been undertaken.

  10. TERM OF OFFICE OF THE AUDIT COMMITTEE

    The term of office of the member(s) of the Audit Committee may not exceed the term of office of the Board of Commissioners pursuant to the Company’s Articles of Association and the member(s) may be re-appointed only for 1 (one) additional term of office.

CONCLUSION

This Audit Committee Charter takes effect as of 1st September 2021. The Audit Committee shal review this Audit Committee Charter at leas once a year to attain Approval from the Board of Commissioners.

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