Audit Committee

The Audit Committee is a committee assigned to assist the Board of Commissioners (BOC) in assessing the adequacy of the internal control system, the adequacy of report and disclosure of financial statements, monitoring the planning and implementation of investment programs, as well as other duties set forth in the Audit Committee Charter. The Audit Committee aims to ensure the effectiveness of the internal control system and the fulfillment of good governance principles.

AUDIT COMMITTEE QUALIFICATIONS

The members of the Audit Committee shall have the following qualifications:

1. Acting with good integrity, and possessing sufficient knowledge and work experience in the field of supervision or inspection;
2. Having no interests in personal relationships that may cause negative impacts or conflicts of interest with Pupuk Kaltim;
3. Having the ability to communicate effectively;
4. Having the ability to provide sufficient time to complete tasks;
5. The member of the Audit Committee must have an educational background or expertise in accounting or finance, and must comprehend the industry and the Company's business;
6. Having sufficient knowledge about regulation and legislation related to the Company's activities;
7. Must not be an associate of any public accounting firm, any law firm, or any other party which has provided audit or other advisory services to the Company for a period of one year prior to being appointed to the Audit Committee;
8. Must not be a key employee of the Company one level below the Board of Directors (BOD) for a period of one year prior to being appointed by the Board of Commissioners (BOC);
9. Not affiliated with Pupuk Kaltim, BOC, BOD, or Main Shareholders;
10. Does not have a business relationship directly or indirectly related to the business activities of Pupuk Kaltim.

APPOINTMENT AND DISMISSAL OF THE AUDIT COMMITTEE

The Audit Committee is appointed and dismissed by the BOC and reported to the General Meeting Shareholders (GMS). Members of the Audit Committee may be dismissed when the tenure expires. The members may also be terminated based on the Decree of the BOC should they fail to perform their duties as expected and / or due to incompetence. The tenure for an Audit Committee member who is not a member of the BOC is a maximum of three years and this may be extended once for a two-year term.

There were dismissals and appointments of the Audit Committee in 2024, including:

1. Board of Commissioners Decree No. KEP-03/KOM-PKT/2024 concerning Dismissal of Pupuk Kaltim’s Board of Commissioners Audit Committee Members Wahyu Tantular Tunggul Kuncahyo;
2. Board of Commissioners Decree No. KEP- 04/KOM-PKT/2024 concerning Appointment of Pupuk Kaltim’s Board of Commissioners Audit Committee Members Patria Sugeng K.