Audit Committee

the Audit Committee is appointed to comply with the accountability principle, guaranteeing the continuity of audit and control functions on the risk management process n STA Resources. The Audit Committee works independently and reports to the Board of Directors.

The Audit Committee is in charge of the audit and analysis of the Company’s quarterly and annual consolidated financial statements to assure the Board of Directors of the consolidated financial statements’s compliance with the requirements of the Indonesia Financial Accounting Standards (PSAK) and that all relevant information has been comprehensively and accurately reported prior to the disclosure of the financial statements.

The analysis helps identify and resolve potential problems to report to the Board of Directors before the disclosure of the consolidated financial statements based on the recommendations from the Audit Committee. The major role of the Audit Committee is to establish and ensure Good Corporate Governance in the Company’s operations and expansions. The Committee is chaired by the Independent Commissioner and two independent professional members highly qualified and experienced in the financial sector, i.e.:

Structure and membership
The Audit Committee’s main duties and responsibilities include:

1)	Conducting analysis on the Company’s financial information to be disclosed to the public and/or the authorities, i.e. financial reports, projections and other reports alike relating to the Company’s financial information.
2)	Conducting analysis on the company activities pursuant to the prevailing provisions of laws and regulations.
3)	Providing recommendation to the Board of Commissioners in appointing the Company’s Accountant based on independence, scope of duties and remuneration.
4)	Conducting analysis on audit execution by the internal auditor and overseeing follow-up actions by the Board of Directors on the internal auditor’s findings.
5)	Conducting analysis on the exeution of risk management activities performed by the Board of Directors, in any case the Company does not have any risk control functions under the Board of Commissioners.
6)	Conducting analysis on filed complaints relating to the Company’s financial accounting dan reporting process.
7)	Conducting analysis and providing recommendation to the Board of Commissioners on potential conflict of interests related to the Company.
8)	Providing independent insights in the event of dispute between the management and the accountant on the services provided.
9)	Reviewing the Company’s compliance with the prevailing provisions of laws and regulations.

ESG (Environment Social Governance) Committee

ESG is a standard for companies in any investment practices encompassing three concepts or criteria: Environmental, Social and Governance. STA Resources applies the ESG principles on the Company’s business and investment practices, integrating and implementing the Company’s policies to continue to meet the ESG criteria.

The main duty of the ESG Committee is to ensure that the three elements of ESG are consistently and effectively integrated into the Companie’s policies and practices in order to build a solid foundation to augmenting the Company’s future worth.

The ESG Committee works with and reports to the President Director. The Committee comprises of 1 (one) chairman and 2 (two) members. The current composition of the ESG Committee is:

Structure and membership
STA Resources practices the ESG Policy as follows

1. Environmental:
   
   • Use of eco-friendly energy sources
   • Establishment of waste management procedures to minimize pollutants
   • Participation in the conservation of non-renewable natural resources
   • Fair and non-abusive treatment of animals
   • Application of an effective risk management system in environmental risk management.
2. Social:
   
   • Selection of suppliers who incorporate ESG criteria in their policies and practices as well.
   • Organizational involvement in the development of the communities in the form of profit sharing and/or employee’s voluntary work for the communities.
   • Assurance of safe and healthy work environment for employees.
   • Assurance of feedback and aspiration intake from stakeholders for the organization.
3. Governance:
   
   • Application of accounting methods in compliance with required standards.
   • Assurance for all shareholders to exercise their rights to participate in any voting on matters crucial to the organization.
   • Assurance of no conflict of interests in the appointment of members of the Board of Directors and Board of Commissioners.
   • Assurance of no political contribution made to attain preferential treatment from the recipient.
   • Assurance of no involvement in illegal activities.