Internal Audit

The Company’s Internal Audit Unit (IAU), which reports to the President Director, provides an independent assessment of the effectiveness of the Company’s internal control and risk management systems and execution. The IAU also provides assurance on the overall quality of the Company’s corporate governance practices. The IAU conducts regular audits all aspects of the organisation, focusing on processes and functions that have a higher risk rating due to potential adverse impact on the interests of the Company and its stakeholders.

Internal Audit Charter

The Internal Audit Charter articulates the structure of the IAU and its position the Company; the qualifications, duties, responsibilities and authority of the auditors; the procedures for their appointment, replacement and termination; the plans, guidelines and reporting procedures of the IAU; the independence and objectivity of the IAU and the Code of Ethics for Internal Auditors. The Internal Audit Charter was established pursuant to the Decision of the Chairman of Bapepam- LK No.KEP-496/BL/2008 dated November 28, 2008 regarding the Establishment and Guidelines for Internal Audit Charters, and reflects the Company’s commitment to strong internal governance. It was last updated on October 25, 2013. As required by law, the Charter is posted on the Company’s website.

Internal Audit Structure

The Head of the IAU and the IA team are structurally independent of all the Company’s business units. The present head of the IAU is Maju Tarigan, who was appointed on May 1, 2013. He leads a team of seven corporate auditors, four of whom have undergone training for their auditor certification.The Head of the IAU is selected and dismissed by the President Director, pursuant to a Circular Letter regarding the Appointment of the IAU Head, which must be approved by the Board of Commissioners.

Duties and Responsibilities

The primary responsibilities of the IAU include:
1. Preparing and implementing the annual Internal Audit Plan;
2. Evaluating the implementation of the internal control and risk management systems, recommending
     areas for improvement and monitoring the effectiveness of related follow-up actions;
3. Evaluating the efficiency and effectiveness of the Company’s performance in key areas, including finance,
     accounting, operation, human resources, marketing and information technology;
4. Conducting special audits and/or investigations as required;
5. Preparing reports on the audit findings for the President Director, the Board of Commissioners and the
     Audit Committee;
6. Giving recommendations for improvement and providing objective information about the activities under
     review at all management levels;
7. Monitoring, analysing and reporting the execution of follow-up actions on recommended improvements;
8. Cooperating with the Audit Committee;
9. Designing programs for quality assessment activities conducted by the Internal Audit Unit.