Form and Content of Annual Reports of Issuers or Public Companies

To:
Directors and Supervisory Boards of Issuers or Public Companies

COPY
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA NUMBER 16/SEOJK.04/2021 REGARDING THE FORM AND CONTENT OF ANNUAL REPORTS OF ISSUERS OR PUBLIC COMPANIES

In order to implement the provisions of Article 6 of Financial Services Authority Regulation Number 29/POJK.04/2016 concerning Annual Reports of Issuers or Public Companies (State Gazette of the Republic of Indonesia Year 2016 Number 150, Supplement to the State Gazette of the Republic of Indonesia Number 5911) and in order to apply sustainable finance for issuers and public companies as referred to in Financial Services Authority Regulation Number 51/POJK.03/2017 concerning the Implementation of Sustainable Finance for Financial Service Institutions, Issuers, and Public Companies (State Gazette of the Republic of Indonesia Year 2017 Number 169, Supplement to the State Gazette of the Republic of Indonesia Number 6103), particularly regarding the obligation to prepare sustainability reports, it is necessary to replace the provisions regarding the form and content of annual reports of issuers or public companies in the Financial Services Authority Circular Letter as follows:

I. GENERAL PROVISIONS

In this Financial Services Authority Circular Letter, the following terms are meant:
a. Annual Report is the accountability report of the Directors and Supervisory Board in managing and supervising the issuer or public company within a 1 (one) financial year to the General Meeting of Shareholders, which is prepared based on the provisions in Financial Services Authority Regulations concerning Annual Reports of issuers or public companies. b. Issuer is a party that conducts a public offering.
c. Public Company is a corporation whose shares are owned by at least 300 (three hundred) shareholders and have paid-up capital of at least Rp3,000,000,000.00 (three billion rupiah) or a number of shareholders and paid-up capital determined by the Financial Services Authority.
d. Open Company is an Issuer that has conducted a public offering of equity-type securities or a Public Company. e. Sustainability Report is a report announced to the public containing the economic, financial, social, and environmental performance of a financial service institution, Issuer, and Public Company in conducting sustainable business. f. Directors:

for Issuers or Public Companies in the form of limited liability companies are the Directors as referred to in Financial Services Authority Regulations concerning Directors and Supervisory Boards of Issuers or Public Companies; and
for Issuers or Public Companies in the form of legal entities other than limited liability companies are the organs that execute the management of such legal entities as referred to in the applicable legislation concerning such legal entities.
g. Supervisory Board:
for Issuers or Public Companies in the form of limited liability companies are the Supervisory Board as referred to in Financial Services Authority Regulations concerning Directors and Supervisory Boards of Issuers or Public Companies; and
for Issuers or Public Companies in the form of legal entities other than limited liability companies are the organs that supervise such legal entities as referred to in the applicable legislation concerning such legal entities.
h. General Meeting of Shareholders, hereinafter abbreviated as GMS:
for Issuers or Public Companies in the form of limited liability companies is the GMS as referred to in Financial Services Authority Regulations concerning the Planning and Implementation of General Meetings of Shareholders of Open Companies; and
for Issuers or Public Companies in the form of legal entities other than limited liability companies is the organ that has authority not given to the organs executing the management function and supervision function, within the limits determined by applicable legislation and/or the articles of association governing such legal entity.

The Annual Report of Issuers or Public Companies is an important source of information for investors or shareholders as one of the considerations in making investment decisions and as a means of supervision over Issuers or Public Companies.
Along with the development of the capital market and the increasing needs of investors or shareholders for information transparency, Directors and Supervisory Boards are required to present quality, accurate, and accountable information through the Annual Report of Issuers or Public Companies.
Annual Reports prepared regularly and informatively can facilitate investors or shareholders and stakeholders in obtaining the required information.
This Financial Services Authority Circular Letter is a guideline for Issuers or Public Companies that must be implemented in preparing Annual Reports and Sustainability Reports.

II. FORM OF ANNUAL REPORT

Annual Reports are presented in the form of printed documents and electronic documents.
Annual Reports presented in the form of printed documents are printed on light-colored, high-quality A4-sized paper, bound, and reproducible with good quality.
Annual Reports may present information in the form of images, graphs, tables, and/or diagrams with clear titles and/or descriptions, so that they are easy to read and understand.
Annual Reports presented in the form of electronic documents are Annual Reports converted into portable document format (PDF).

III. CONTENT OF ANNUAL REPORT

Annual Reports must contain at least:
a. summary of important financial data; b. stock information (if any);
c. Directors' Report;
d. Supervisory Board Report; e. Profile of Issuer or Public Company; f. Management's Discussion and Analysis; g. Governance of Issuer or Public Company; h. Social and Environmental Responsibility of Issuer or Public Company;
i. audited annual financial statements; and
j. statement letter from members of the Directors and members of the Supervisory Board regarding responsibility for the Annual Report.
Description of Annual Report Content

a. Summary of Important Financial Data
The summary of important financial data contains financial information presented in the form of comparison for 3 (three) financial years or since starting operations if the Issuer or Public Company has been operating for less than 3 (three) years, containing at least:

revenue/sales;
gross profit;
profit (loss);
amount of profit (loss) attributable to owners of the parent entity and non-controlling interests;
total comprehensive profit (loss);
amount of comprehensive profit (loss) attributable to owners of the parent entity and non-controlling interests;
profit (loss) per share;
total assets;
total liabilities;
total equity;
profit (loss) ratio to total assets;
profit (loss) ratio to equity;
profit (loss) ratio to revenue/sales;
current ratio;
liability to equity ratio;
liability to total assets ratio; and
other relevant financial information and ratios for the Issuer or Public Company and its industry type.

b. Stock Information
Stock information for Open Companies must contain at least:

issued shares for each presented quarter presented in the form of comparison for the last 2 (two) financial years, containing at least:
a) number of outstanding shares; b) market capitalization based on the price on the stock exchange where the shares are listed; c) highest, lowest, and closing stock prices based on the price on the stock exchange where the shares are listed; and d) trading volume on the stock exchange where the shares are listed. Information in letters b), c), and d) is only disclosed if the shares are listed on a stock exchange;
in the event of corporate actions that cause changes to shares, such as stock split, reverse stock, stock dividends, bonus shares, changes in nominal value of shares, issuance of conversion securities, as well as addition and reduction of capital, stock information as referred to in item 1) must include an explanation of at least:
a) date of implementation of corporate action; b) ratio of stock split, reverse stock, stock dividends, bonus shares, number of issued conversion securities, and changes in nominal value of shares; c) number of outstanding shares before and after corporate action; d) number of executed conversion securities (if any); and e) stock price before and after corporate action;
in the event of temporary suspension of stock trading (suspension) and/or cancellation of stock listing (delisting) in the financial year, the reasons for the temporary suspension of stock trading (suspension) and/or cancellation of stock listing (delisting) must be explained; and
in the event that the temporary suspension of stock trading (suspension) as referred to in item 3) and/or the process of cancellation of stock listing (delisting) is still ongoing until the end of the Annual Report period, the actions taken to resolve the temporary suspension of stock trading (suspension) and/or cancellation of stock listing (delisting) must be explained.

c. Directors' Report
The Directors' Report must contain at least a brief description of:

performance of the Issuer or Public Company, containing at least:
a) strategy and strategic policies of the Issuer or Public Company; b) the role of the Directors in formulating the strategy and strategic policies of the Issuer or Public Company; c) the process undertaken by the Directors to ensure the implementation of the Issuer's or Public Company's strategy; d) comparison between achieved results and targets of the Issuer or Public Company; and e) obstacles faced by the Issuer or Public Company;
an overview of the business prospects of the Issuer or Public Company; and
the implementation of governance of the Issuer or Public Company.

d. Supervisory Board Report
The Supervisory Board Report must contain at least a brief description of:

assessment of the Directors' performance regarding the management of the Issuer or Public Company, including the Supervisory Board's supervision in the formulation and implementation of the Issuer's or Public Company's strategy carried out by the Directors;
views on the business prospects of the Issuer or Public Company prepared by the Directors; and
views on the implementation of governance of the Issuer or Public Company.

e. Profile of Issuer or Public Company
The Profile of Issuer or Public Company must contain at least the following information:

name of the Issuer or Public Company, including if there is a name change, the reason for the change, and the effective date of the name change in the financial year;
access to the Issuer or Public Company, including branch offices or representative offices that enable the public to obtain information regarding the Issuer or Public Company, including:
a) address; b) telephone number; c) email address; and d) website address;
brief history of the Issuer or Public Company;
vision and mission of the Issuer or Public Company as well as corporate culture or corporate values;
business activities according to the latest articles of association, business activities carried out in the financial year, and the type of goods and/or services produced;
operational area of the Issuer or Public Company; operational area is the area or region of implementation of operational activities or the scope of the company's operational activities.
organizational structure of the Issuer or Public Company in the form of a chart, at least down to 1 (one) level below the Directors, including committees under the Directors (if any) and committees under the Supervisory Board, accompanied by names and positions;
list of membership in industry associations, both nationally and internationally, related to the implementation of sustainable finance;
Directors' profile, containing at least:
a) name and position in accordance with duties and responsibilities; b) latest photo; c) age; d) nationality; e) educational history and/or certification; f) career history, including information:
(1) legal basis for appointment as a Director of the relevant Issuer or Public Company; (2) concurrent positions, both as a Director, Supervisory Board member, and/or committee member, as well as other positions, both inside and outside the Issuer or Public Company. In the event that a Director does not have concurrent positions, this must be disclosed; and (3) work experience and its period, both inside and outside the Issuer or Public Company; g) affiliation relationships with other Directors, Supervisory Board members, major shareholders, and controllers, both directly and indirectly, down to individual owners, including the names of affiliated parties. In the event that a Director has no affiliation relationships, the Issuer or Public Company must disclose this; and h) changes in the composition of Directors and the reasons for the changes. In the event that there are no changes in the composition of Directors, this must be disclosed;
Supervisory Board profile, containing at least:
a) name and position; b) latest photo; c) age; d) nationality; e) educational history and/or certification; f) career history, including information:
(1) legal basis for appointment as a Supervisory Board member; (2) legal basis for the first appointment as an independent commissioner of the relevant Issuer or Public Company; (3) concurrent positions, both as a Supervisory Board member, Director, and/or committee member, as well as other positions, both inside and outside the Issuer or Public Company. In the event that a Supervisory Board member does not have concurrent positions, this must be disclosed; and (4) work experience and its period, both inside and outside the Issuer or Public Company; g) affiliation relationships with other Supervisory Board members, major shareholders, and controllers, both directly and indirectly, down to individual owners, including the names of affiliated parties; In the event that a Supervisory Board member has no affiliation relationships, the Issuer or Public Company must disclose this; h) independence statement of independent commissioners in the event that independent commissioners have served for more than 2 (two) terms; and i) changes in the composition of Supervisory Board members and the reasons for the changes. In the event that there are no changes in the composition of Supervisory Board members, this must be disclosed;
in the event of changes in the composition of Directors and/or Supervisory Board members occurring after the end of the financial year until the deadline for submitting the Annual Report, the composition attached in the Annual Report is the last and previous composition of Directors and/or Supervisory Board members;
number of employees by gender, position, age, education level, and employment status (permanent/contract) in the financial year;
Disclosure of information may be presented in the form of a table.
names of shareholders and ownership percentage at the beginning and end of the financial year, consisting of information regarding:
a) shareholders who own 5% (five percent) or more of the shares of the Issuer or Public Company; b) Directors and Supervisory Board members who own shares of the Issuer or Public Company.
In the event that all Directors and/or all Supervisory Board members do not own shares, this must be disclosed; and c) public shareholder groups, namely groups of shareholders each owning less than 5% (five percent) of the shares of the Issuer or Public Company; The above information may be presented in the form of a table.
percentage of indirect ownership of shares of the Issuer or Public Company by Directors and Supervisory Board members at the beginning and end of the financial year, including information regarding shareholders registered in the shareholder list for the interest of indirect ownership by Directors and Supervisory Board members;
In the event that all Directors and/or all Supervisory Board members do not have indirect ownership of shares of the Issuer or Public Company, this must be disclosed.
number of shareholders and ownership percentage at the end of the financial year based on classification:
a) local institutional ownership; b) foreign institutional ownership; c) local individual ownership; and d) foreign individual ownership;
information regarding major shareholders and controllers of the Issuer or Public Company, both directly and indirectly, down to individual owners, presented in the form of a scheme or chart;
names of subsidiaries, associate companies, joint venture companies where the Issuer or Public Company has joint control of the entity (if any), along with the percentage of share ownership, business field, total assets, and operational status of subsidiaries, associate companies, joint venture companies;
For subsidiaries, additional information regarding the address of the subsidiary is required.
chronology of stock listing, number of shares, nominal value, and offering price from the beginning of listing until the end of the financial year, as well as the name of the stock exchange where the shares of the Issuer or Public Company are listed, including stock split, reverse stock, stock dividends, bonus shares, and changes in nominal value of shares, execution of conversion securities, execution of addition and reduction of capital (if any);
information on other securities listing besides securities as referred to in item 18), which have not yet matured in the financial year, containing at least the name of the security, year of issuance, interest rate/yield, maturity date, offering price, and security rating (if any);
information on the use of public accountants (PA) and public accounting firms (PAF) as well as their networks/associations/alliances, including:
a) name and address; b) assignment period; c) audit and/or non-audit service information provided; d) audit and/or non-audit service fees for each assignment provided during the financial year; and e) in the event that the PA and PAF as well as their networks/associations/alliances designated do not provide non-audit services, this information must be disclosed; and Disclosure of information on the use of PA and PAF as well as their networks/associations/alliances may be presented in the form of a table.
names and addresses of institutions and/or capital market supporting professions other than PA and PAF.

f. Management's Discussion and Analysis
Management's Discussion and Analysis contains analysis and discussion regarding financial statements and other important information with an emphasis on material changes occurring in the financial year, containing at least:

operational review per business segment according to the industry type of the Issuer or Public Company, regarding at least:
a) production, including processes, capacity, and developments; b) revenue/sales; and c) profitability;
comprehensive financial performance covering the comparison of financial performance in the last 2 (two) financial years, explanation of the causes of changes and the impact of such changes, at least regarding:
a) current assets, non-current assets, and total assets; b) short-term liabilities, long-term liabilities, and total liabilities; c) equity; d) revenue/sales, expenses, profit (loss), other comprehensive income, and total comprehensive profit (loss); and e) cash flows;
debt payment ability or obligations by presenting relevant ratio calculations;
collectibility level of the Issuer's or Public Company's receivables by presenting relevant ratio calculations;
capital structure and management's policy on such capital structure, accompanied by the basis for determining such policy;
discussion regarding material commitments for capital goods investments with an explanation containing at least:
a) the purpose of such commitments; b) the source of funds expected to fulfill such commitments; c) the currency denomination; and d) steps planned by the Issuer or Public Company to protect against risks from foreign currency positions related thereto;
discussion regarding capital goods investments realized in the last financial year, containing at least:
a) type of capital goods investment; b) purpose of capital goods investment; and c) value of capital goods investment expended;
material information and facts occurring after the date of the accountant's report (if any);
business prospects of the Issuer or Public Company related to industry conditions, general economic conditions, and international markets, accompanied by quantitative supporting data from reliable data sources;
comparison between targets/projections at the beginning of the financial year with achieved results (realization), regarding:
a) revenue/sales; b) profit (loss); c) capital structure; or d) other matters considered important for the Issuer or Public Company;
targets/projections to be achieved by the Issuer or Public Company for 1 (one) year ahead, regarding:
a) revenue/sales; b) profit (loss); c) capital structure; d) dividend policy; or e) other matters considered important for the Issuer or Public Company;
marketing aspects of goods and/or services of the Issuer or Public Company, at least regarding marketing strategy and market share;
description of dividends for the last 2 (two) financial years, at least:
a) dividend policy, including information on the percentage of dividends distributed against net profit; b) date of cash dividend payment and/or date of non-cash dividend distribution; c) dividend amount per share (cash and/or non-cash); and d) total dividends per year paid; Disclosure of information may be presented in the form of a table. In the event that the Issuer or Public Company does not distribute dividends in the last 2 (two) years, this must be disclosed.
realization of the use of proceeds from public offerings, with the provisions:
a) in the event that during the financial year, the Issuer has an obligation to submit a report on the realization of the use of funds, the realization of the use of proceeds from public offerings must be disclosed cumulatively until the end of the financial year; and b) in the event of changes in the use of funds as regulated in Financial Services Authority Regulations concerning reports on the realization of the use of proceeds from public offerings, the Issuer must explain such changes;
material information (if any), including regarding investments, expansions, divestments, mergers/acquisitions, debt/equity restructuring, material transactions, affiliated transactions, and conflict of interest transactions, occurring in the financial year, containing at least:
a) date, value, and object of the transaction; b) name of the party conducting the transaction; c) nature of affiliation relationship (if any); d) explanation regarding the fairness of the transaction; e) fulfillment of relevant regulations; and f) in the event of an affiliation relationship, besides disclosing information as referred to

In letters a) through e), the Issuer or Public Company also discloses information:
(1) a statement by the Board of Directors that related-party transactions have undergone adequate procedures to ensure that related-party transactions are carried out in accordance with prevailing business practices, including by meeting the fair transaction principle (arms-length principle); and (2) the role of the Board of Commissioners and the audit committee in carrying out adequate procedures to ensure that related-party transactions are carried out in accordance with prevailing business practices, including by meeting the fair transaction principle (arms-length principle); g) for related-party transactions or material transactions that are business activities carried out to generate business income and are carried out routinely, repeatedly, and/or continuously, an explanation is added that the related-party transactions or material transactions are business activities carried out to generate business income and are carried out routinely, repeatedly, and/or continuously; In the event that the aforementioned related-party transactions or material transactions have been disclosed in the annual financial report, information regarding the reference to the disclosure in the annual financial report is added. h) for the disclosure of related-party transactions and/or conflict of interest transactions that are the result of the implementation of related-party transactions and/or conflict of interest transactions that have been approved by independent shareholders, information regarding the date of the General Meeting of Shareholders (GMS) that approved the related-party transactions and/or conflict of interest transactions is added; i) in the event that there are no related-party transactions and/or conflict of interest transactions, information regarding this is disclosed;
16) changes in legislation that have a significant impact on the Issuer or Public Company and its impact on the financial statements (if any); and
17) changes in accounting policies, reasons, and their impact on the financial statements (if any).

g. Issuer or Public Company Governance
Issuer or Public Company governance must at least contain a brief description of:

GMS, at least containing:
a) Information regarding GMS decisions in the current fiscal year and 1 (one) year prior to the current fiscal year, including:
(1) GMS decisions in the current fiscal year and 1 (one) year prior to the current fiscal year that were realized in the current fiscal year; and (2) GMS decisions in the current fiscal year and 1 (one) year prior to the current fiscal year that have not been realized, along with the reasons for non-realization; b) in the event that the Issuer or Public Company uses an independent party in the implementation of the GMS to conduct vote counting, this must be disclosed;
Board of Directors, at least containing:
a) the duties and responsibilities of each member of the Board of Directors; Information regarding the duties and responsibilities of each member of the Board of Directors is described and may be presented in table form. b) a statement that the Board of Directors has guidelines or a charter; c) policies and the implementation of the frequency of Board of Directors meetings, joint meetings of the Board of Directors and Board of Commissioners, and the attendance rate of Board of Directors members in such meetings, including attendance at the GMS; Information on the attendance rate of Board of Directors members in Board of Directors meetings, joint meetings of the Board of Directors and Board of Commissioners, or GMS may be presented in table form. d) training and/or competency enhancement for Board of Directors members:
(1) policies for training and/or competency enhancement for Board of Directors members, including orientation programs for newly appointed Board of Directors members (if any); and (2) training and/or competency enhancement attended by Board of Directors members in the current fiscal year (if any); e) the Board of Directors' assessment of the performance of committees supporting the implementation of the Board of Directors' duties in the current fiscal year, at least containing:
performance assessment procedures; and
criteria used, such as performance achievements during the current fiscal year, competence, and attendance in meetings; and
f) in the event that the Issuer or Public Company does not have committees supporting the implementation of the Board of Directors' duties, this must be disclosed.
Board of Commissioners, at least containing:
a) the duties and responsibilities of the Board of Commissioners; b) a statement that the Board of Commissioners has guidelines or a charter; c) policies and the implementation of the frequency of Board of Commissioners meetings, joint meetings of the Board of Commissioners and Board of Directors, and the attendance rate of Board of Commissioners members in such meetings, including attendance at the GMS; Information on the attendance rate of Board of Commissioners members in Board of Commissioners meetings, joint meetings of the Board of Commissioners and Board of Directors, or GMS may be presented in table form. d) training and/or competency enhancement for Board of Commissioners members:
(1) policies for training and/or competency enhancement for Board of Commissioners members, including orientation programs for newly appointed Board of Commissioners members (if any); and (2) training and/or competency enhancement attended by Board of Commissioners members in the current fiscal year (if any); e) assessment of the performance of the Board of Directors and Board of Commissioners, as well as each member of the Board of Directors and Board of Commissioners, at least containing:
(1) procedures for implementing performance assessments; (2) criteria used, such as performance achievements during the current fiscal year, competence, and attendance in meetings; and (3) the party conducting the assessment; and f) the Board of Commissioners' assessment of the performance of Committees supporting the implementation of the Board of Commissioners' duties in the current fiscal year, including:
(1) performance assessment procedures; and
(2) criteria used, such as performance achievements during the current fiscal year, competence, and attendance in meetings;
Nomination and Remuneration of the Board of Directors and Board of Commissioners, at least containing:
a) nomination procedures, including a brief description of the policies and processes for nominating members of the Board of Directors and/or Board of Commissioners; and b) procedures and implementation of remuneration for the Board of Directors and Board of Commissioners, including:
(1) procedures for determining remuneration for the Board of Directors and Board of Commissioners; (2) remuneration structure for the Board of Directors and Board of Commissioners, such as salaries, allowances, dividends/bonuses, and others; and (3) the amount of remuneration for each member of the Board of Directors and Board of Commissioners; Disclosure of information may be presented in table form.
Sharia Supervisory Board, for Issuers or Public Companies conducting business activities based on Sharia principles as stipulated in the Articles of Association, at least containing:
a) name; b) legal basis for the appointment of the Sharia Supervisory Board; c) term of assignment of the Sharia Supervisory Board; d) duties and responsibilities of the Sharia Supervisory Board; and e) frequency and method of providing advice and suggestions, as well as supervision of Sharia compliance in the capital market for the Issuer or Public Company;
Audit Committee, at least containing:
a) name and position in committee membership; b) age; c) nationality; d) educational background; e) career history, including information:
(1) legal basis for appointment as a committee member; (2) concurrent positions, both as members of the Board of Commissioners, members of the Board of Directors, and/or members of other committees and other positions (if any); and (3) work experience along with the time period, both inside and outside the Issuer or Public Company; f) term and tenure of committee members; g) statement of independence of the audit committee; h) training and/or competency enhancement attended in the current fiscal year (if any); i) policies and implementation of the frequency of audit committee meetings and the attendance rate of audit committee members in such meetings; and j) implementation of audit committee activities in the current fiscal year in accordance with the guidelines or charter of the audit committee;
Nomination and Remuneration Committee or function of the Issuer or Public Company, at least containing:
a) name and position in committee membership; b) age; c) nationality; d) educational background; e) career history, including information:
(1) legal basis for appointment as a committee member; (2) concurrent positions, both as members of the Board of Commissioners, members of the Board of Directors, and/or members of other committees and other positions (if any); and (3) work experience along with the time period, both inside and outside the Issuer or Public Company; f) term and tenure of committee members; g) statement of independence of the committee; h) training and/or competency enhancement attended in the current fiscal year (if any); i) description of duties and responsibilities; j) statement that it has guidelines or a charter; k) policies and implementation of the frequency of meetings and the attendance rate of members in such meetings; l) brief description of committee activities implementation in the current fiscal year; and m) in the event that a nomination and remuneration committee is not formed, the Issuer or Public Company only needs to disclose information as referred to in letters i) through l) and disclose:
(1) reasons for not forming the committee; and (2) the party carrying out the nomination and remuneration functions;
other committees owned by the Issuer or Public Company to support the functions and duties of the Board of Directors (if any) and/or committees supporting the functions and duties of the Board of Commissioners, at least containing:
a) name and position in committee membership; b) age; c) nationality; d) educational background; e) career history, including information:
(1) legal basis for appointment as a committee member; (2) concurrent positions, both as members of the Board of Commissioners, members of the Board of Directors, and/or members of other committees and other positions (if any); and (3) work experience along with the time period, both inside and outside the Issuer or Public Company; f) term and tenure of committee members; g) statement of independence of the committee; h) training and/or competency enhancement attended in the current fiscal year (if any); and i) description of duties and responsibilities; j) statement that it has guidelines or a charter for the committee; k) policies and implementation of the frequency of committee meetings and the attendance rate of committee members in such meetings; and l) brief description of committee activities implementation in the current fiscal year;
Company Secretary, at least containing:
a) name; b) domicile; c) career history, including:
(1) legal basis for appointment as company secretary; and (2) work experience along with the time period, both inside and outside the Issuer or Public Company; d) educational background; e) training and/or competency enhancement attended in the current fiscal year; and f) brief description of the implementation of the company secretary's duties in the current fiscal year;
Internal Audit Unit, at least containing:
a) name of the head of the internal audit unit; b) career history, including:
(1) legal basis for appointment as head of the internal audit unit; and (2) work experience along with the time period, both inside and outside the Issuer or Public Company; c) qualifications or certification as an internal audit profession (if any); d) training and/or competency enhancement attended in the current fiscal year; e) structure and position of the internal audit unit; f) description of duties and responsibilities; g) statement that it has guidelines or a charter for the internal audit unit; and h) brief description of the implementation of the internal audit unit's duties in the current fiscal year, including policies and implementation of the frequency of meetings with the Board of Directors, Board of Commissioners, and/or audit committee;
description of the internal control system implemented by the Issuer or Public Company, at least containing:
a) financial and operational controls, as well as compliance with other applicable legislation; b) review of the effectiveness of the internal control system; and c) statement by the Board of Directors and/or Board of Commissioners regarding the adequacy of the internal control system;
risk management system implemented by the Issuer or Public Company, at least containing:
a) general overview of the Issuer or Public Company's risk management system; b) types of risks and their management methods; c) review of the effectiveness of the Issuer or Public Company's risk management system; and d) statement by the Board of Directors and/or Board of Commissioners or audit committee regarding the adequacy of the risk management system;
material legal cases faced by the Issuer or Public Company, subsidiaries, members of the Board of Directors, and members of the Board of Commissioners (if any), at least containing:
a) subject matter of the case/lawsuit; b) status of case/lawsuit resolution; and c) its impact on the condition of the Issuer or Public Company;
information regarding administrative sanctions/sanctions imposed on the Issuer or Public Company, members of the Board of Commissioners, and members of the Board of Directors, by the Financial Services Authority and other authorities in the current fiscal year (if any);
information regarding the Issuer or Public Company's code of ethics, including:
a) main points of the code of ethics; b) forms of code of ethics socialization and enforcement efforts; and c) statement that the code of ethics applies to members of the Board of Directors, members of the Board of Commissioners, and employees of the Issuer or Public Company;
brief description of the policy on long-term performance-based compensation for management and/or employees owned by the Issuer or Public Company (if any), including management stock ownership program (MSOP) and/or employee stock ownership program (ESOP);
In the event that compensation is provided in the form of a management stock ownership program (MSOP) and/or employee stock ownership program (ESOP), the disclosed information must at least contain:
a) number of shares and/or options; b) implementation period; c) requirements for eligible employees and/or management; and d) exercise price or price determination;
brief description of the policy on disclosure of information regarding:
a) share ownership by members of the Board of Directors and members of the Board of Directors, at the latest 3 (three) working days after the occurrence of ownership or any change in ownership of shares of the Public Company; and b) implementation of the aforementioned policy;
description of the whistleblowing system in the Issuer or Public Company, at least containing:
a) method of submitting violation reports; b) protection for whistleblowers; c) handling of complaints; d) party managing complaints; and e) results of complaint handling, at least:
(1) number of complaints received and processed in the current fiscal year; and (2) follow-up on complaints; In the event that the Issuer or Public Company does not have a whistleblowing system, this must be disclosed.
description of the Issuer or Public Company's anti-corruption policy, at least containing:
a) programs and procedures carried out to address corruption practices, kickbacks, fraud, bribery, and/or gratification in the Issuer or Public Company; and b) anti-corruption training/socialization for employees of the Issuer or Public Company; In the event that the Issuer or Public Company does not have an anti-corruption policy, the reasons for not having such a policy must be explained.
implementation of the guidelines for governance of Public Companies for Issuers issuing equity securities or Public Companies, including:
a) statement regarding recommendations that have been implemented; and/or b) explanation of recommendations that have not been implemented, accompanied by reasons and alternative implementation methods (if any). Disclosure of information may be presented in table form.

h. Social and Environmental Responsibility of the Issuer or Public Company

Information disclosed in the social and environmental responsibility section is a Sustainability Report as referred to in Financial Services Authority Regulation Number 51/POJK.03/2017 concerning the Implementation of Sustainable Finance for Financial Services Institutions, Issuers, and Public Companies, at least containing:
a) explanation of sustainability strategy; b) summary of sustainability aspects (economic, social, and environmental); c) brief profile of the Issuer or Public Company; d) Board of Directors' explanation; e) sustainability governance; f) sustainability performance; g) written verification from an independent party, if any; h) feedback sheet for readers, if any; and i) response of the Issuer or Public Company to feedback from the previous year's report;
The Sustainability Report as referred to in item 1) must be prepared in accordance with the Technical Guidelines for Preparing Sustainability Reports for Issuers and Public Companies as contained in Appendix II, which is an integral part of this Financial Services Authority Circular;
Sustainability Report information in item 1) may:
a) be disclosed in other relevant sections outside the social and environmental responsibility section, such as the Board of Directors' explanation regarding the Sustainability Report disclosed in the relevant section of the Board of Directors' Report; and/or b) refer to other sections outside the social and environmental responsibility section while still referring to the Technical Guidelines for Preparing Sustainability Reports for Issuers and Public Companies as contained in Appendix II, which is an integral part of this Financial Services Authority Circular, such as the profile of the Issuer or Public Company;
The Sustainability Report as referred to in item 1) is an integral part of the Annual Report but may be presented separately from the Annual Report;
In the event that the Sustainability Report is presented separately from the Annual Report, the information disclosed in the aforementioned Sustainability Report must:
a) contain all information as referred to in item 1); and b) be prepared in accordance with the Technical Guidelines for Preparing Sustainability Reports for Issuers and Public Companies as contained in Appendix II, which is an integral part of this Financial Services Authority Circular;
In the event that the Sustainability Report is presented separately from the Annual Report, the social and environmental responsibility section must contain information that information regarding social and environmental responsibility has been disclosed in the Sustainability Report presented separately from the Annual Report; and
Submission of the Sustainability Report presented separately from the Annual Report must be submitted simultaneously with the submission of the Annual Report.

i. Audited Annual Financial Reports
The annual financial reports contained in the Annual Report are prepared in accordance with accounting standards in Indonesia and have been audited by a public accountant registered with the Financial Services Authority. The aforementioned annual financial reports contain a statement regarding accountability for the financial reports as regulated in Financial Services Authority Regulations regarding the responsibility of the Board of Directors for financial reports or other legislation in the capital market sector regulating periodic reports of securities companies in the event that the Issuer is a securities company.

j. Statement Letter of Board of Directors Members and Board of Commissioners Members regarding Responsibility for the Annual Report The statement letter of Board of Directors members and Board of Commissioners members regarding responsibility for the Annual Report is prepared in accordance with the format of the Statement Letter of Board of Directors Members and Board of Commissioners Members regarding Responsibility for the Annual Report as contained in Appendix I, which is an integral part of this Financial Services Authority Circular.

This copy is consistent with the original
Director of Law 1
Legal Department signed
Mufli Asmawidjaja

IV. CLOSING

Financial Services Authority Circular Number 30/SEOJK.04/2016 concerning the Form and Content of Annual Reports of Issuers or Public Companies is revoked and declared invalid after the expiration of the submission deadline for the 2020 Annual Report.
This Financial Services Authority Circular becomes effective for the preparation of the 2021 Annual Report submitted to the Financial Services Authority in 2022.
This Financial Services Authority Circular becomes effective on the date it is established.

Established in Jakarta on 29 June 2021
EXECUTIVE HEAD
CAPITAL MARKET SUPERVISOR
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
HOESEN

APPENDIX I
FINANCIAL SERVICES AUTHORITY CIRCULAR
REPUBLIC OF INDONESIA
NUMBER 16 /SEOJK.04/2021
CONCERNING
THE FORM AND CONTENT OF ANNUAL REPORTS OF ISSUERS OR PUBLIC COMPANIES

This copy is consistent with the original
Director of Law 1
Legal Department signed
Mufli Asmawidjaja

STATEMENT LETTER
OF BOARD OF DIRECTORS MEMBERS AND BOARD OF COMMISSIONERS MEMBERS REGARDING RESPONSIBILITY FOR THE ANNUAL REPORT (period)...
PT ………………
We, the undersigned, declare that all information in the Annual Report of PT .............. for the year ..... has been included completely and take full responsibility for the truthfulness of the content of the company's Annual Report. Thus, this statement is made truthfully. ………., …………………. (place and date) Board of Directors Member, Board of Commissioners Member, (position) ……………………………… .…….………………………….. (name and signature) (name and signature)

Established in Jakarta on 29 June 2021
EXECUTIVE HEAD OF CAPITAL MARKET SUPERVISOR
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
HOESEN

APPENDIX II
FINANCIAL SERVICES AUTHORITY CIRCULAR
REPUBLIC OF INDONESIA
NUMBER 16 /SEOJK.04/2021
CONCERNING
THE FORM AND CONTENT OF ANNUAL REPORTS OF ISSUERS OR PUBLIC COMPANIES

TECHNICAL GUIDELINES FOR PREPARING
SUSTAINABILITY REPORTS
FOR ISSUERS AND PUBLIC COMPANIES

INTRODUCTION
Implementation of Sustainable Finance for Issuers and Public Companies Sustainable Finance is comprehensive support from the financial services sector to create sustainable economic growth by aligning economic, environmental, and social interests. In a broad sense, Sustainable Finance for Issuers and Public Companies can be understood as sustainable operations, namely company operations conducted with attention to economic, environmental, and social aspects. The function of a company is not only to generate profit but also to maintain environmental sustainability and show concern for social issues. The implementation of Sustainable Finance activities will be reflected at the end of each year in the Sustainability Reports of Issuers and Public Companies. Meaning and Benefits of Sustainability Reports Sustainability Reports are reports to the public regarding sustainability performance consisting of three aspects: economic, environmental, and social. Sustainability Reports are also considered as accountability and transparency of Issuers and Public Companies regarding the impact of their operations on the economy, environment, and society. In the context of sustainable development, Sustainability Reports are viewed as a medium presenting information regarding the contribution of Issuers and Public Companies to achieving Sustainable Development Goals (SDGs). Through Sustainability Reports, various benefits are expected to be obtained, both internal and external. Internal benefits include:

sharpening vision and strategy in sustainability aspects;
Strengthen the management system related to sustainability management;
Improve the quality of transparency regarding the company's efforts in implementing sustainability aspects;
Facilitate the analysis of the company's weaknesses and strengths; and
Increase employee motivation regarding environmental and social concerns.

The external benefits obtained through the Sustainability Report include:

Enhancing the company's image and reputation as well as public trust;
Facilitating access to funds/investors;
Improving relationships with stakeholders; and
Enhancing competitiveness.

Principles of Sustainable Finance
To generate effective implementation of Sustainable Finance, Issuers and Public Companies are encouraged to use the following 8 (eight) principles as guidelines.

Responsible Investment Principle
Responsible investment is an investment approach that considers economic, environmental, social, and governance factors in investment decisions, aiming to manage risks more effectively.
Examples of implementing this principle include:
a. Investment in new and renewable energy business fields; b. Investment in businesses related to energy efficiency innovation; and
c. Investment in businesses aimed at preserving the environment and community investment aimed at improving the quality of life for marginalized communities.
Sustainable Business Strategy and Practice Principle
Issuers and Public Companies must establish and implement sustainable business strategies and practices in every decision-making process, emphasizing the achievement of long-term goals and the establishment of short-term strategies as part of the effort to achieve long-term goals. The aforementioned business strategies and practices include vision, mission, organizational structure, strategic plans, standard operating procedures, work programs, up to the determination of risk factors in risk management. The implementation of these business strategies aims to minimize negative impacts and integrate economic, environmental, and social aspects.
Social and Environmental Risk Management Principle
Issuers and Public Companies must have a prudence principle in measuring social and environmental risks from the company's operational activities. Social and environmental risks include negative social and environmental impacts from the company's operational activities.
Governance Principle
Issuers and Public Companies must implement sustainability governance by considering economic, environmental, and social aspects built on principles of transparency, accountability, responsibility, independence, professionalism, equality, and fairness.
Informative Communication Principle
Issuers and Public Companies must prepare and provide informative reports covering the company's strategy, governance, performance, and prospects. The report must be easy to understand, accountable, and delivered through effective communication media accessible to all stakeholders. In this regard, the report that Issuers and Public Companies are required to compile is the Sustainability Report as explained in this Technical Guideline.
Inclusive Principle
Issuers and Public Companies must strive to ensure the availability and accessibility of products and/or services so that they can be accessed by their consumers.
Priority Key Sector Development Principle
In formulating sustainability programs, Issuers and Public Companies must consider priority key sectors established by the Government through the Medium-Term Development Plan (RPJM) and the National Long-Term Development Plan (RPJP). This is done to support the achievement of Sustainable Development Goals (SDGs), including climate change mitigation.
Coordination and Collaboration Principle
In order to align strategies/policies, business opportunities, and product innovations with national interests, Issuers and Public Companies actively participate in forums/activities/cooperations related to sustainable business, at regional, national, and local levels.

Allocation of Social and Environmental Responsibility Funds (TJSL) to Support the Implementation of Sustainable Finance Issuers and Public Companies may allocate a portion of TJSL funds to support the implementation activities of Sustainable Finance. The allocation of TJSL funds can be used to support the implementation of Sustainable Finance, including:
a. Construction of facilities and infrastructure to improve the quality of life of communities around the company's operational areas; and b. Organization of training for small and medium enterprises (SMEs) related to sustainable business. The report on the use of TJSL funds is included in the Sustainability Report.

Adjustments (Alignment)
In implementing Sustainable Finance, Issuers and Public Companies are required to develop internal capacity and adjust organizations so that sustainable business objectives can be realized, namely creating sustainable economic growth and running company operations that are mindful of environmental and social aspects. In company development, the main thing done is to prepare human resources (HR) who understand and are able to implement sustainability practices. HR development is also directed to encourage innovation/development of various sustainable products and/or services. In the implementation of the Financial Services Authority Regulation (POJK) Number 51/POJK.03/2017 on the Implementation of Sustainable Finance for Financial Service Institutions, Issuers, and Public Companies, Issuers and Public Companies are encouraged to gradually, according to their financial conditions, structure, and complexity, adjust organizations, risk management, governance, and/or standard operating procedures (SOP) as a response to market demands/needs, and support government policies regarding Sustainable Development Goals (SDGs) and climate change. Organizational adjustments with Sustainable Finance principles are carried out on vision, mission, strategic plans, organizational structure, as well as the main tasks and functions of sustainability. The adjustment process is carried out according to the company's needs and priorities. Organizational structure adjustments can be made by adding a sustainability function to existing units or forming a special unit that runs sustainability programs that coordinate from planning to monitoring and evaluation of various policies, programs, and sustainability practices scattered across other work units.

I. GENERAL PROVISIONS

This technical guideline on Sustainability Reports is intended as a guide for Issuers and Public Companies in compiling Sustainability Reports, which is the implementation of POJK Number 51/POJK.03/2017 on the Implementation of Sustainable Finance for Financial Service Institutions, Issuers, and Public Companies.
Sustainability Reports contain policies, programs, and achievements, both quantitatively and qualitatively, regarding economic, environmental, and social aspects.
Issuers and Public Companies that are Financial Service Institutions (FSI) may use this technical guideline as long as it does not conflict with the technical guideline for the implementation of POJK Number 51/POJK.03/2017 on the Implementation of Sustainable Finance for Financial Service Institutions, Issuers, and Public Companies applicable to FSIs.
Sustainability Reports are an integral part of the Annual Report. Sustainability Reports can be presented as one unit with the Annual Report or presented separately from the Annual Report.
The disclosure of information as referred to in this technical guideline is a minimum requirement. If necessary, the disclosed information can be expanded according to needs, including by referring to international standards.

II. FORM OF SUSTAINABILITY REPORTS

Sustainability Reports are presented in the form of printed documents and electronic documents.
Sustainability Reports presented in the form of electronic documents are Sustainability Reports converted into portable document format (PDF) and submitted to the Financial Services Authority through the electronic reporting system (SPE) as regulated in the Financial Services Authority Regulation regarding the submission of reports through SPE by Issuers or Public Companies.
Sustainability Reports presented as part of the Annual Report are presented in Indonesian and foreign languages, using at least English.
Sustainability Reports can present information in the form of images, graphs, tables, and/or diagrams by stating clear titles and/or descriptions, so that they are easy to read and understand.

III. CONTENT OF SUSTAINABILITY REPORTS
Sustainability Reports must at least contain the following information:
A. Sustainability Strategy
A.1. Explanation of Sustainability Strategy
B. Summary of Sustainability Aspect Performance B.1. Economic Aspect, at least containing:
a. Quantity of products or services sold; b. Revenue or sales;
c. Net profit or loss;
d. Environmentally friendly products; and e. Involvement of local parties related to the Sustainable Finance business process.
B.2. Environmental Aspect, at least containing:
a. Energy usage; b. Emission reductions generated;
c. Waste and effluent reductions; and
d. Biodiversity conservation.
B.3. Social Aspect
C. Company Profile
C.1. Vision, Mission, and Sustainability Values C.2. Company Address C.3. Business Scale, at least containing:
a. Total assets or asset capitalization and total liabilities; b. Number of employees by gender, position, age, education, and employment status;
c. Name of shareholders and percentage of share ownership; and
d. Operational areas.
C.4. Products, Services, and Business Activities Carried Out C.5. Membership in Associations C.6. Significant Changes in Issuers and Public Companies

D. Board of Directors' Explanation
D.1. Board of Directors' Explanation a. Policies to respond to challenges in fulfilling sustainability strategies b. Implementation of Sustainable Finance
c. Strategy for achieving targets
E. Sustainability Governance
E.1. Responsible Party for the Implementation of Sustainable Finance E.2. Competency Development Related to Sustainable Finance E.3. Risk Assessment on the Implementation of Sustainable Finance E.4. Relationships with Stakeholders E.5. Problems Regarding the Implementation of Sustainable Finance F. Sustainability Performance F.1. Activities Building Sustainability Culture Economic Performance F.2. Comparison of Targets and Performance of Production, Portfolios, Financing Targets, or Investments, Revenue, and Profit/Loss Environmental Performance General Aspects F.3. Comparison of Targets and Performance of Portfolios, Financing Targets, or Investments in Financial Instruments or Projects Aligned with Sustainable Finance Environmental Aspects F.4. Environmental Costs Material Aspects F.5. Use of Environmentally Friendly Materials Energy Aspects F.6. Quantity and Intensity of Energy Used F.7. Efforts and Achievements in Energy Efficiency and Use of Renewable Energy Water Aspects F.8. Water Usage Biodiversity Aspects F.9. Impacts from Operational Areas Near or Located in Conservation Areas or Having Biodiversity F.10. Biodiversity Conservation Efforts Emission Aspects F.11. Quantity and Intensity of Emissions Generated by Type F.12. Efforts and Achievements in Emission Reductions Carried Out Waste and Effluent Aspects F.13. Quantity of Waste and Effluents Generated by Type F.14. Waste and Effluent Management Mechanisms F.15. Spills Occurred (if any) Environmental Complaints Aspects F.16. Quantity and Material of Environmental Complaints Received and Resolved. Social Performance F.17. Commitment to Providing Services for Products and/or Services Equally to Consumers Labor Aspects F.18. Equality of Working Opportunities F.19. Child Labor and Forced Labor F.20. Regional Minimum Wages F.21. Decent and Safe Working Environment F.22. Training and Employee Capability Development Community Aspects F.23. Operational Impacts on Surrounding Communities F.24. Community Complaints F.25. Social and Environmental Responsibility (TJSL) Activities Sustainable Product/Service Development Responsibility F.26. Innovation and Development of Sustainable Financial Products/Services F.27. Products/Services That Have Been Evaluated for Customer Safety F.28. Product/Service Impacts F.29. Quantity of Products Recalled F.30. Customer Satisfaction Surveys Regarding Sustainable Financial Products and/or Services G. Others:
G.1. Written Verification from Independent Parties (if any) G.2. Feedback Form G.3. Responses to Feedback on Previous Year's Sustainability Reports G.4. List of Disclosures in accordance with Financial Services Authority Regulation Number 51/POJK.03/2017 on the Implementation of Sustainable Finance for Financial Service Institutions, Issuers, and Public Companies.

IV. EXPLANATION OF SUSTAINABILITY REPORT CONTENT
This section contains more detailed explanations of the content of Sustainability Reports as referred to in number III above. Whenever possible, explanations are given by showing examples of their implementation.

A. Sustainability Strategy
A.1. Explanation of Sustainability Strategy
This section contains an explanation of the implementation of vision and mission in the implementation of Sustainable Finance comprehensively, including time targets for both long-term and short-term, risk management, and desired results. Example:

The company implements sustainable development oriented towards Sustainable Development Goals (SDGs).
The company creates and shares values with stakeholders and continues to strive to minimize environmental impacts.
Various strategic policies related to sustainability are designed according to needs and evaluated periodically for improvement according to conditions and business environment.
Socialization of sustainability culture among employees is carried out in a relay manner from top management to lowest employees through internal training, briefings, displaying sustainability modules on the company's sustainability portal on the website as part of the mandatory self-learning program for employees. Within 3 (three) years, it is targeted that all employees have understood and are able to implement sustainability practices.
The company also conducts training for certain business partners and suppliers regarding sustainability as part of the company's strategy involving them as sustainable business partners/suppliers. Within a period of 3 (three) years, it is targeted that all suppliers have undergone training.

B. Summary of Sustainability Aspect Performance This section contains a summary/overview of sustainability performance in economic, environmental, and social aspects in the last 3 (three) years. If Issuers and Public Companies operate for less than 3 (three) years and data is not available, then the summary of sustainability aspect performance is presented as per the available data. Disclosure of the summary of sustainability aspect performance can be presented in the form of narratives, illustrations, or tables. B.1. Economic Aspect, containing at least the following information:
a. Quantity of products or services sold; b. Revenue or sales;
c. Net profit or loss;
d. Environmentally friendly products, such as electric vehicles, and electricity generated from Hydroelectric Power Plants (PLTA), goods/services with eco-labels or environmentally friendly certifications. In this section, Issuers and Public Companies can also disclose portfolios or financing based on categories of Sustainable Finance activities as regulated in POJK Number 60/POJK.04/2017 on the Issuance and Requirements of Environmental Debt Securities (Green Bonds). e. Involvement of local parties related to the Sustainable Finance business process. Involvement of local parties can include the number of local suppliers and/or the number of local workers in the area where the company operates. Example:
Description/Year 2021 2020 2019
Production (tons) xx
Revenue/Sales (IDR) xx
Net Profit/Loss (IDR) xx
Quantity of environmentally friendly products xx Quantity of local suppliers xx

B.2. Environmental Aspect, containing at least information regarding:
a. Energy usage, including electricity and water; b. Emission reductions generated;
c. Waste and effluent reductions; and
d. Biodiversity conservation.
Disclosure of information as referred to in letter a applies to all Issuers and Public Companies. Meanwhile, for Issuers and Public Companies whose business processes are directly related to the environment, in addition to disclosing information as referred to in letter a, they also disclose information as referred to in letters b through d. This section contains a summary/overview of sustainability performance in the field of environment as elaborated in disclosures F.4 to F.16 in this report (if any).

Example:
Environmental Performance Achievements
Unit 2021 2020 2019
Electric Energy xx
Water Energy xx
Emission Reduction xx
Waste Reduction xx
Biodiversity Conservation xx

B.3. Social Aspect, containing an explanation of the positive and negative impacts of implementing Sustainable Finance for society and the environment (including impacts on people, regions, and funds) and efforts to minimize negative impacts. Example:
The company continues to develop community programs in fields such as: education, health, local economic development, culture, and environment. In year 20XX, the use of funds for community programs in region XX amounted to RpXX, directed to XX parties, increasing XX% compared to the previous year. The positive impacts of these programs include increasing the capacity and quality of human resources (HR) of the surrounding community, increasing welfare, and improving community health levels. The negative impacts of the company's operations are waste and emissions. The company has minimized these by optimally managing waste, water, and emissions. During the reporting period, there were no violations of environmental regulations.

C. Company Profile
Presents a general overview of the characteristics of Issuers and Public Companies, at least:
C.1. Vision, Mission, and Sustainability Values This section contains statements regarding vision and mission as well as values related to sustainability.
Example:

Vision
Improving economic resilience by creating sustainable value for stakeholders. Responsible for the environment and caring for society.
Mission
Providing products and services through Sustainable Finance.
Values
Applying the 3Ps principle (Profit, Planet, and People) as consideration in making every company decision.

C.2. Company Address
This section contains the name, address, telephone number, email address, and website, as well as branch offices and/or representative offices of Issuers and Public Companies.

C.3. Business Scale
This section contains information at least containing:
a. Total assets or asset capitalization, and total liabilities (in millions of rupiah or other currencies that meet the criteria for the functional currency of Issuers and Public Companies); b. Number of employees divided by gender, position, age, education, and employment status (permanent/contract);
c. Name of shareholders and percentage of share ownership of Issuers and Public Companies; and
d. Operational areas;
Information on operational areas includes subsidiaries of Issuers and Public Companies.
Example:
A coal mining company headquartered in Jakarta has coal mines in several regions in Kalimantan. The locations of these coal mines in Kalimantan are called operational areas.
Disclosure of business scale can be presented in the form of descriptions and/or images/graphs/tables.

C.4. Products, Services, and Business Activities Carried Out This section contains a brief explanation of the products, services, and business activities carried out.

C.5. Membership in Associations
This section contains information on the list of memberships of Issuers and Public Companies in industry associations or others, both national and international scales, that support Sustainable Finance. This information shows that the Issuer is actively following current issue developments and plays a role in providing useful suggestions and inputs. Example 1:
The company is a member of several organizations, namely:
a. Indonesian Mining Services Association b. Indonesia Global Compact Nation (ICGN) Members
c. United Nations Environment Programme Finance Initiative (Unep-FI)
d. Indonesia Business Council for Sustainable Development (IBCSD) Example 2:
The company has been a member of the Indonesian Contractors Association since year XX. As a member, the company attends regular meetings held by the association every three months.
Example 3:
The company is committed to becoming an investment company that considers ESG factors in business. Since year XX, the company has been committed to becoming signatories of the Principles for Responsible Investment (PRI).

C.6. Significant Changes in Issuers and Public Companies This section contains information regarding significant changes in Issuers and Public Companies, such as mergers/consolidations of companies, closure of branch offices/factories/business units, opening of new branch offices/factories or new business units. Example 1:
In 2020, the company closed branch XX in XX for efficiency reasons. However, on the other hand, the company also opened branch XX to maximize its operational activities.
Example 2:
The company created a new division to carry out new product development tasks that are more environmentally friendly. This division is named XX and is directly under the director of XX, who is responsible for reporting environmentally friendly product development innovations to the president director.

D. Board of Directors' Explanation
D.1. Board of Directors' Explanation.
The Board of Directors' Explanation section contains:
a. Policies to respond to challenges in fulfilling sustainability strategies, containing at least the following explanation:

Sustainability values owned by Issuers and Public Companies, containing a brief explanation of the sustainability values adhered to by Issuers and Public Companies and how sustainability values are developed and approved.
Example:
Over a period of more than 10 years, the company has grown by more than XX%. This growth is supported by the company's sustainability values, which are providing benefits by doing the best, respecting others, professionalism, and integrity. The company's corporate culture is built based on these values. Based on the company's values and culture, the company always implements the code of ethics that serves as a guide for company personnel in interacting with stakeholders. To ensure that the company conducts its business in accordance with its values, culture, and code of ethics, the company continuously conducts internalization in various activities.
Response of Issuers and Public Companies to Issues Related to Sustainable Finance, containing a brief explanation of sustainability issues or potential sustainability issues faced by Issuers and Public Companies and the steps taken by Issuers and Public Companies in responding to sustainability impacts.

Example:
In conducting its business in various locations, the company faces potential social problems in certain areas. These potential problems have been anticipated through the implementation of various community development and empowerment programs, partnership programs, including infrastructure development, based on the results of social mapping studies in each subsidiary area and business unit.

Leadership Commitment in Implementing Sustainable Finance, containing a brief explanation of the Issuer's and Public Company's commitment to sustainability issues.

Example:
In fulfilling its commitment to sustainability, the company focuses on social responsibility activities aligned with the Sustainable Development Goals (SDGs) and supports Government programs in the social and environmental fields. SDGs consist of 17 goals to achieve sustainable development by 2030, and the company is committed to participating in their achievement. The company currently contributes to 12 Sustainable Development Goals (SDGs) where the company's activities, business, products, and services can be correlated with the company's support and contribution to these SDGs.

Performance Achievements, containing a brief explanation of the sustainability performance achievements of Issuers and Public Companies.

Example:
With the existing challenges, throughout the year 20XX, the company's performance was quite good. In the economic field, the company recorded an increase in net profit of more than XX% compared to the previous year. Meanwhile, in the environmental field, this year the company achieved two green rankings and three blue rankings in the Corporate Performance Rating Program Awards (PROPER) of the Ministry of Environment and Forestry (KLHK). Meanwhile, in the social field, this year the company successfully carried out various community empowerment activities and supported the government in creating independent villages. To improve this sustainability performance, the company has established a sustainability program that explains the roadmap of programs in the short, medium, and long term.

Challenges in Implementing Sustainable Finance, containing a brief explanation of the challenges faced by Issuers and Public Companies in implementing Sustainable Finance to achieve the next targets, whether short-term, medium-term, or long-term targets.

Example:
The implementation of government policies in the mining sector becomes a particular challenge for the company. To be able to improve performance from the current position, the company has launched several short, medium, and long-term projects. In the short term, the company implements a cost efficiency program, while for the medium and long term, the company is still in the stage of completing four coal processing plant construction projects to further increase the added value of the company's mining commodities.

b. Implementation of Sustainable Finance, containing at least the following explanations:

Achievement of sustainability implementation performance (economic, environmental, and social) compared to targets, containing a brief explanation of sustainability performance achievements compared to established targets.

Example:
During the year 20XX, the company has tried to give its best to realize the established targets. The company's targets and achievements during the year 20XX are as follows:

Economic Field:

The company produced a total of 7,500 units of Product X, which is 40% higher than the production achievement of the previous year. Compared to last year, the company's overall financial performance measured using financial ratios has increased.
In the marketing field, the company has increased its market share, which increased by 5% from the previous period. In addition, the target for increasing the customer satisfaction score was also achieved this year, where the company's customer satisfaction score this year reached a score of 87.

Environmental Field:

Exceeding the established target, this year the company was able to achieve an electricity power efficiency of 5 MW. This electricity efficiency saves electricity expenses of up to Rp120 billion per year.
The operation of the company's new plant has also reduced emissions by 30,000 tons of CO2-eq per year.

Social Field:

In the year 20XX, the company successfully provided community empowerment training to more than 2,100 people around the company's operational area. This number increased from the previous year.
The Guided Village program developed this year has been running gradually. Up to this period, guidance has been carried out in as many as 125 villages. This number is lower than the target. This is due to the difficulty of reaching villages located in the interior.

Achievements and challenges including important events during the reporting period, containing a brief explanation of the achievements obtained and/or important events experienced by Issuers and Public Companies related to sustainability.

Example:
In the year 20XX, the company managed to achieve several achievements, including the Sustainability Report Award, Reputable Company, and Indonesian SDGs Award. In addition, this year, the company has carried out expansion by acquiring PT XYZ to support the downstreaming of the company's business.

c. Strategy for achieving targets, containing at least the following information:

Risk management information regarding the implementation of Sustainable Finance related to economic, environmental, and social aspects that have the potential to affect the sustainability of Issuers and Public Companies, containing a brief explanation of the Issuer's and Public Company's sustainability risk management policy containing the risks faced and how to mitigate those risks.

Example:
To achieve sustainability targets, the company realizes the importance of risk management, both financial and economic risks, environmental risks, and social risks. The company periodically conducts a process of identification, analysis, mitigation, evaluation, monitoring, and communication of operational risks in mining business that have the potential to hinder the achievement of company targets. In addition, the company also pays attention to operational risks in the social and environmental sectors that can threaten business sustainability and the company's reputation.

Utilization of opportunities and business prospects, containing a brief explanation of the opportunities and business prospects owned by Issuers and Public Companies and how Issuers and Public Companies create opportunities and take advantage of existing opportunities and prospects.

Example:
The increasingly prominent Industry 4.0 revolution opens up various promising business opportunities and prospects for the company. Therefore, the company will strengthen the business it has pursued, accelerate technology mastery, and develop products and services that match customer needs based on technology. In addition, the increase in population and national economic growth are opportunities to develop new business lines. The company has developed digital-based sales methods.

Explanation of external economic, environmental, and social situations that have the potential to affect the sustainability of Issuers and Public Companies, containing a brief explanation of external factors and their impact on the sustainability of Issuers and Public Companies.

Example:
By considering external factors that occur, such as commodity price fluctuations, exchange rate changes, decline in community purchasing power, increase in energy costs, and others, the company has carried out various strategies to overcome the negative impacts of these external factors. From the perspective of business development, the company has carried out several portfolio product diversification policies. In addition, long-term strategies outlined in the sustainability roadmap are expected to turn these external factors into opportunities for the company.

E. Sustainability Governance
Sustainability governance contains information related to the company's commitment to carrying out sustainability governance by considering economic, environmental, and social aspects, including but not limited to:

E.1. Responsible Parties for the Implementation of Sustainable Finance This section contains information regarding the duties of Board of Directors members, Board of Commissioners members, employees, officials, and/or work units that are responsible for the implementation of Sustainable Finance.

Example:

The person responsible for implementing sustainability is concurrently held by the director overseeing human resources, who is responsible for determining sustainability policies, coordinating sustainability practices carried out by relevant divisions, and managing the flow of data and information related to sustainability.
In carrying out his duties, the director overseeing human resources is assisted by the head of the sustainability division, who is responsible to the director overseeing human resources.
For cross-sectoral coordination, the company forms a sustainability committee under the Board of Directors. This committee is led by the operations director. The members of this committee consist of the head of the corporate social responsibility (CSR) division, the head of the human resource development sustainability division, the head of the occupational health and safety division, the head of the environmental division, and the company secretary. The sustainability committee holds regular meetings at least once a month to monitor and evaluate sustainability programs.

E.2. Competency Development Related to Sustainable Finance This section contains information regarding competency development in the field of sustainability for Board of Directors members, Board of Commissioners members, employees, officials, and/or work units that are responsible for the implementation of sustainability.

Example:

Employees or staff in the mining engineering department follow training related to environmental management in mining regarding post-mining sustainability.
Board of Directors members and Board of Commissioners members have followed competency development training in the field of sustainability through in-house training.
In the year 20XX, training on the preparation of Sustainability Reports was held, attended by all employees of the sustainability unit.

E.3. Risk Assessment on the Implementation of Sustainable Finance This section contains information regarding:
a. Explanation of procedures in identifying, measuring, monitoring, and controlling risks over the implementation of sustainability business related to economic, environmental, and social aspects; and b. Explanation of the role of Board of Directors members and Board of Commissioners members in managing, conducting periodic reviews, and reviewing the effectiveness of the risk management process carried out by Issuers and Public Companies.

Example 1:
The company has an anti-corruption and anti-gratification policy in accordance with the determined requirements. This policy is contained in XX which has been signed by the director general on date XX. The policy has been broken down into implementing procedures to identify, measure, monitor, and control risks of corruption that may occur.
Part of this implementing procedure is:

Every month, internal auditors review all transactions conducted with business partners. The results of this review become the basis for evaluating and managing working relationships between the company and all its business partners in accordance with work contracts.
The results of implementation and anti-corruption targets are reported by the compliance director to the director general as one of the forms of duties and responsibilities carried out.

Example 2:
The company realizes that in the company's operational process, it is not free from economic, environmental, and social risks. In each company office, both headquarters and branches, risks related to economic, environmental, and social impacts are identified and managed. Risk management implementation is carried out in accordance with the Enterprise Risk Management framework carried out through a special risk management department that has the main function in the implementation, development, and assessment of an integrated risk management system under the risk management director. Risk management function managers at each level have risk management certifications, namely Certified Risk Management Officer (CRMO) and Certified Risk Management Professional (CRMP). With this framework, risk information will be submitted to the Board of Directors and Commissioners to become the basis for decision-making.

E.4. Stakeholder Relations
This section contains information regarding the identification of stakeholders carried out by Issuers and Public Companies and how Issuers and Public Companies respond to stakeholder expectations. Stakeholder relationship information includes:

a. Stakeholder involvement based on management assessment results, General Meeting of Shareholders, decrees, or others; b. Approaches used by Issuers and Public Companies in involving stakeholders in the implementation of Sustainable Finance, including in the form of dialogues, surveys, and seminars.

Example 1:

Stakeholder identification has been carried out through a survey method held in March 20XX. The identification results produced that XX is a stakeholder group. The XX stakeholder group was established as a primary stakeholder through a decree of the president director number XX.
The company has a multi-stakeholder communication forum in the planning, implementation, monitoring, and evaluation process of programs related to sustainability practices to provide positive impacts for stakeholders.

Example 2:

The company identifies stakeholders as parties involved and having an interest in the organization and able to influence and/or be influenced by the achievement of organizational goals such as employees, investors/shareholders, regulators, business partners, communities/associations, consumers/customers, society, and others. This stakeholder identification has been discussed and received management approval. The approaches used by the company in involving stakeholders are as follows:

Stakeholder	Approach Method
Employees	Townhall meetings, performance improvement forums, training/education, employee outbounds.
Investors/Shareholders	General Meeting of Shareholders Regulators

E.5. Problems Regarding the Implementation of Sustainable Finance This section contains concise information regarding problems or challenges in the implementation of Sustainable Finance. Problems or challenges can include operational problems from within the company and/or problems from outside the company (external conditions). Information on strategies to overcome challenges and problems also needs to be conveyed so that stakeholders know the steps taken by Issuers and Public Companies to minimize/mitigate risks arising from these challenges.

Example 1:
One of the problems faced by the company in implementing Sustainable Finance is employee awareness in implementing Sustainable Finance. Therefore, the company's main focus in the next 2 (two) years is the internalization of the concept and practice of Sustainable Finance through the dissemination of knowledge and awareness of the importance of implementing Sustainable Finance to all company employees. To this end, the company actively involves employees in various training related to Sustainable Finance.

Example 2:
Currently, we are developing environmentally friendly products and it is expected that in the year 20XX, these products can circulate in society. However, public awareness in using environmentally friendly products is still low because they are considered more expensive compared to ordinary products. This condition becomes a challenge for us to continue carrying out education.

F. Sustainability Performance
Contains general information about the commitment of Issuers and Public Companies in building a sustainability culture, sustainability performance in the economic, environmental, and social fields. Disclosure of sustainability performance can be conveyed in the form of descriptions and/or images/graphs/tables.

F.1. Activities to Build a Sustainability Culture This section contains information regarding activities to build a sustainability culture internally within Issuers and Public Companies.

Example:

The corporate culture of PT XYZ, which is built based on sustainability values ABC, has been introduced since recruitment and is continuously internalized in various company activities. In the year 20XX, internalization activities included training for instructors holding positions in the field of sustainability.
PT XYZ continues to build a sustainability culture by issuing policies in the field of sustainability and internalizing them among employees through the issuance of leaflets, briefings by superiors, or face-to-face events between management and employees.
The company is committed to creating occupational health and safety (K3) performance with the achievement of zero fatal accidents.
The company is committed to ensuring that 100% of plastic packaging used is made of recyclable materials by the year 2025.

Economic Performance
Description of economic performance in the last 3 (three) years includes:

F.2. Comparison of Targets and Performance of Production, Portfolio, Financing Targets, or Investment, Revenue, and Profit and Loss.

Example:

Year | Comparison of Targets and Realization of Production (Ton) | Comparison of Targets and Realization of Revenue | Comparison of Targets and Realization of Profit/Loss --- | --- | --- | ---
| Target | Realization | Target | Realization | Target | Realization
2019 | xx | xx | xx | xx | xx | xx
2018 | xx | xx | xx | xx | xx | xx
2017 | xx | xx | xx | xx | xx | xx

F.3. Comparison of Targets and Performance of Portfolio, Financing Targets, or Investment in Financial Instruments or Projects Aligned with Sustainable Finance.

Example 1:
Comparison of Targets and Realization of Investment in Environmentally Friendly Projects (Rp Million)

Year	Target	Realization
2019	xx	xx
2018	xx	xx
2017	xx	xx

Example 2:
Comparison of Targets and Realization of Financing to Consumers Purchasing Environmentally Friendly Vehicles (Rp Million)

Year	Target	Realization
2019	xx	xx
2018	xx	xx
2017	xx	xx

In the event that Issuers and Public Companies operate for less than 3 (three) years and data is not yet available, then Economic Performance is presented as per the available data.

Environmental Performance
Sustainability in the environmental field consists of two parts, namely the first part regarding the environment in general and the second part regarding the environment for Issuers and Public Companies whose business processes are directly related to the environment. Disclosure of information regarding the environment in general as referred to in Number III Letter F.4 to F.8 applies to all Issuers and Public Companies, while for Issuers and Public Companies whose business processes are directly related to the environment, such as mining companies, plantations, and other sectors, in addition to disclosing information as referred to in Number III letter F.4 to F.8, they also disclose information as referred to in Number III letter F.9 to F.16.

General Aspects
F.4. Environmental Costs
Every operational activity of Issuers and Public Companies can have adverse impacts on the environment and society if prevention is not carried out as early as possible by issuing various policies aimed at mitigating environmental impacts resulting from company operations. Prevention efforts and actions or restoration of environmental damage are reflected in the costs incurred for the environment (environmental costs).

Example:
In the year 2020, the environmental costs incurred by the company were Rp XX or increased by XX% compared to the previous year. These costs include land reclamation, hazardous waste management costs, as well as maintenance and planting of various types of plants.

Material Aspects
F.5. Use of Environmentally Friendly Materials This section contains information regarding the use of environmentally friendly material ingredients in making and packaging products and services. The use of environmentally friendly materials can include the use of recycled material types.

Example:

Use of natural dye materials by textile companies
Use of compost/organic fertilizers
Use of recycled paper or stationery as office supplies (ATK)
Use of eco-label plastic as packaging

Energy Aspects
F.6. Amount and Intensity of Energy Used
The amount of energy is shown through the disclosure of the amount of the most used types of energy such as fuel oil (BBM), coal, natural gas, and electricity. In this report, Issuers and Public Companies are expected to disclose the methodology and standards used in calculating energy consumption and converting the amount of energy into joules or its multiples. Furthermore, energy intensity is a measure of the amount of energy used compared to company output. For example, if the unit of measurement for company output is tons, then the unit of energy intensity used is joules per ton.

Example:
Energy Consumption

Unit	2019	2018	2017
Fuel Oil (BBM)	Liter	xx	xx
Gigajoules	xx	xx	xx
Electricity	Kwh	xx	xx
Gigajoules	xx	xx	xx
Total Gigajoules		xx	xx
Total Production	Ton	xx	xx
Energy Consumption Intensity/ton	Gigajoules/Ton	xx	xx

Notes:
1). Fuel oil consumption from liters is converted to GJoules using The Greenhouse Gas Protocol Initiative, 2004.
2). Electricity consumption from kwh is converted to GJoules using The Greenhouse Gas Protocol Initiative, 2004.

F.7. Efforts and Achievements in Energy Efficiency and Use of Renewable Energy This section contains information regarding steps that have been taken and energy efficiency achieved by Issuers and Public Companies compared to the previous year, including the use of renewable energy. In the event of an increase in energy usage compared to the previous year, Issuers and Public Companies disclose the reasons for the energy increase and efforts made by Issuers and Public Companies for energy efficiency.

Example:

Energy efficiency efforts are carried out through the replacement of machines with new energy-saving technology and carrying out maintenance regularly and diligently.
We have installed solar power plants (PTLM) in our factory buildings in Cibitung since 2018. We plan that in the next 5 years, all our factories will...

Indonesia uses PLTM, so it can reduce GHG emissions by 60% in 2025.

The Company has initiated an energy-saving program implemented in network operations, data centers, and offices. The Company uses electricity, while for the operation of generator fuel and communication towers not accessible by electricity and for transportation needs, the Company uses oil fuel. The Company strives to reduce electricity usage through the 'Smart Electricity' program, which is carried out through automation and centralization of lighting and room cooling controls in all buildings. With this system, the Company has succeeded in reducing electricity usage by approximately 10% and can save electricity expenses of up to Rp 120 billion per year.

Water Aspect
F.8. Water Usage
This section contains information regarding the amount and source of water used, including efficiency efforts and/or water management.
Example:
In the production process, we use water for washing production results. We obtain water from the surface (rivers) and from underground (boreholes). In the last 3 (three) years, water usage was as follows:

Water Usage (M3)
2019 2018 2017
Surface Water xx
Groundwater xx

Biodiversity Aspect
F.9. Impact from Operational Areas Near or in Conservation Areas or Having Biodiversity This section contains information regarding the operational areas of the Issuer and Public Company that generate impact, both positive and negative, on the surrounding environment, especially efforts to increase ecosystem carrying capacity. Positive Impact Example:
We planted XX trees around the factory site with endemic plants and fruit trees by empowering the community. The harvest from those plants was handed over to the community.
Negative Impact Example:
In 2019, the company opened a new mining area in a fairly remote area, namely XX. The opening of this area was carried out in accordance with the territory and work permits obtained since XX. The opening of the mining area will have a negative impact on the surrounding landscape, including existing ecosystems. Realizing this, the company ensures compliance with all environmental requirements, including Environmental Management Efforts (UKL) and Environmental Monitoring Efforts (UPL), as well as Environmental Impact Analysis (AMDAL).

F.10. Biodiversity Conservation Efforts
This section contains information regarding biodiversity conservation efforts, which must at least include:
a. impact from operational areas near or in conservation areas or having biodiversity; and b. biodiversity conservation efforts carried out, including protection of flora or fauna species.
Example:

The ecosystem around the former mining area is generally disturbed due to the impact of mining company operations. Therefore, the company carries out revegetation/reclamation in the disturbed former mining area. However, the company not only carries out restoration in the former mining area, but also outside the operational area as a form of commitment to implementing sustainable mining practices and environmental management. The restoration carried out is by planting XX thousand trees in an area of XX hectares.
The Company has a high commitment to always carrying out various efforts to preserve biodiversity, especially for ecosystem habitats and flora-fauna located around the operational area. Several company operational areas are located within or adjacent to areas with protected status. In carrying out its operations, the company always ensures compliance with applicable regulations. One of the strategies carried out by the company to protect biodiversity is by collaborating with research center XX to carry out biodiversity conservation in line with post-mining plans, namely by transforming the former mining area into part of an ecotourism site.
The opening of the new XX factory area in the XX region is ensured to be in accordance with the results of environmental impact analysis studies and does not disturb the existence of ecosystems. As of the end of 2019, no company factories were established in conservation or protected areas. However, the company continues to support conservation and preservation of biodiversity, namely by preserving orangutans (pongo pygmaeus). Orangutans are protected wild animals that have an important function in the forest ecosystem, especially as a umbrella species. This activity is carried out together with XX. In addition, coral reef preservation is also carried out in the XX region, in collaboration with XX.

Emission Aspect
F.11. Amount and Intensity of Emissions Generated by Type This section contains information regarding the amount and intensity of emissions generated from company operations, such as greenhouse gas (GHG) emissions. These GHG emissions come from 3 sources, namely:

fuel usage is called scope 1,
electricity usage is called scope 2, and
business travel using airplanes is called scope 3.
Issuers and Public Companies are expected to present the methodology and standards used in calculating the GHG Emissions generated from their business processes.

Example:
GHG Emissions
(Ton CO2-eq)
GHG Emission Source 2019 2018 2017
Scope 1 (Fuel) xx
Scope 2 (Electricity) xx
Scope 3 (Business Travel) xx
Total xx
Production Volume xx
GHG Emission Intensity/ton xx
Notes

GHG Emission calculations for fuel usage (Pertamax) use reference to the technical guidelines for calculating GHG emission baselines for the energy-based sector, Bappenas, 2014.
GHG Emission calculations from electricity usage (kWh) are carried out based on regulations from the Directorate General of Electricity, Ministry of Energy and Mineral Resources, 2017.
GHG Emission calculations from business travel are carried out in accordance with ICAO (International Civil Aviation Organization) standards.

F.12. Efforts and Achievements in Emission Reduction Carried Out This section contains information regarding steps that have been taken and emission reductions achieved compared to the previous year. In the event of an increase in emissions compared to the previous year, Issuers and Public Companies disclose the reasons for the increase in emissions and the efforts made by Issuers and Public Companies to reduce emissions.

Example 1:
Greenhouse gas (GHG) emissions are mainly caused by mining activities and transportation activities carried out by the company. The Company realizes that the impact of mining operational activities is the generation of CO2 emissions, Ozone Depleting Substance (ODS) emissions, and other emissions that have a negative greenhouse effect and ozone layer damage. In relation to this, the company has had a GHG emission reduction policy. Various efforts have been carried out by the company, such as applying appropriate and environmentally friendly technology to support the GHG emission control program. Compared to last year, the GHG emission intensity this year successfully decreased by 7%, namely from 9.93 tons CO2-eq last year to 9.33 tons CO2-eq this year.

Example 2:
To reduce emissions and increase fuel efficiency, the company maintains all operational vehicles. Maintenance and exhaust gas emission testing are carried out periodically and the company retires vehicles that are no longer fit for use. Gradually, the company increases the number of fuel-efficient operational vehicles with relatively lower cylinder volumes. Currently, there are XX fuel-efficient operational vehicles, out of a total of XX vehicles.

Example 3:
In the last 3 (three) years, the company has planted 8.14 million trees that contribute to increasing the absorption of XX carbon in the atmosphere. These trees are maintained and currently the effectiveness rate of carbon absorption reaches XX%.

Waste and Effluent Aspect
F.13. Amount of Waste and Effluents Generated by Type This section contains information regarding the amount and type of waste generated from company operations.
Example:
Waste in the cement industry is a resource that can be reused in production activities. The Company carries out management of hazardous and toxic (B3) waste as well as non-B3 waste. In carrying out B3 waste utilization activities, the Company obtains a permit from the Ministry of Environment and Forestry (KLHK), namely regarding the utilization of used oil and used bag filters as alternative fuel. Meanwhile, solid B3 waste that cannot be reused (such as used batteries, chemical bottles) is handed over to third parties who have permits from KLHK. Example in Table Form Solid Waste Quantity Disclosure Unit Total solid waste generated Kg Reuse Kg Recycling Kg Processing into compost Kg Mass Incineration Kg Final Disposal Site Kg Hazardous Waste Quantity Disclosure Unit Total weight of hazardous waste generated Kg Total weight of hazardous waste transported Kg

Effluent
Quantity Disclosure Unit
Total volume of water discharged M3
Percentage of water recycled %

F.14. Waste and Effluent Management Mechanism
This section contains information regarding waste management carried out by Issuers and Public Companies, to what extent Issuers and Public Companies have managed the balance between disposal options and their impact on the environment. For example, landfills (TPA) and recycling create types of environmental impact. As far as possible, waste can be recycled to minimize ecological impact. Example:
Waste in the cement industry is a resource that can be reused in production activities. The Company carries out management of hazardous and toxic (B3) waste as well as non-B3 waste. In carrying out B3 waste utilization activities, the Company obtains a permit from the Ministry of Environment and Forestry (KLHK), namely regarding the utilization of used oil and used bag filters as alternative fuel. Meanwhile, solid B3 waste that cannot be reused (such as used batteries, chemical bottles) is handed over to third parties who have permits from KLHK for that type of B3 waste.

F.15. Spills Occurred (if any)
This section contains information regarding spills of chemicals, oil, and fuel, among other substances that have the potential to affect soil, water, air, biodiversity, and human health. If the business operations of Issuers and Public Companies generate spills, Issuers and Public Companies are expected to inform the location of the spill, volume of the spill, type, and significant impact of the spill. Example:
During 2019, there were spills or leaks of B3 waste totaling XX in several operational areas of the company, namely in the XX and XX regions. The B3 waste leak was in the form of XX.

Environmental Complaint Aspect
F.16. Number and Material of Environmental Complaints Received and Resolved This section contains information regarding the number and material of complaints received and resolved by Issuers and Public Companies. Example:
During the reporting period, there were no community complaints regarding the environment.

Social Performance
Description of social performance in the last 3 (three) years includes:
F.17. Commitment to Providing Equal Services for Products and/or Services to Consumers This section contains information regarding the commitment of Issuers and Public Companies in providing equal services for products and/or services to consumers and explains how the products produced are intended to meet various consumer needs. Example:
The Company has developed products by developing needs from various consumer segments. To guarantee the quality and standards of the products offered, the company always accepts suggestions and inputs for quality improvement and pays attention to and responds well to customer complaints in accordance with service guidelines. In addition, to guarantee the accuracy of information, products offered by the company are always accompanied by accurate information about the composition of raw materials and how to use them.

Labor Aspect
F.18. Equal Employment Opportunity
This section contains information regarding the policy of Issuers and Public Companies to ensure equal employment opportunities between genders, groups, ethnicities, and races. For example, in employee promotions, Issuers and Public Companies treat all employees equally and fairly to obtain promotions. This regulation is regulated in personnel regulations or in collective labor agreements (PKB). Example:
The Company guarantees that the recruitment process for all employees at all levels has been carried out transparently and fairly and is based on qualifications required by the company. The principle of equal employment opportunity always becomes the basis for the company in choosing the best talents to become part of the company employees. In the recruitment process, the company always ensures that there is no discrimination in every work environment of the company.

F.19. Child Labor and Forced Labor
In accordance with applicable labor regulations, companies are prohibited from employing children and forced labor. This section contains information regarding the existence or non-existence of child labor and forced labor in Issuers and Public Companies. Issuers and Public Companies can explain the efforts made to ensure that there is no use of child labor and forced labor. Example:
In accordance with labor regulations, the company is committed to not employing underage employees and forced labor.

F.20. Regional Minimum Wage
This section contains information regarding the compliance of Issuers and Public Companies with the regional minimum wage (UMR), namely information regarding the percentage of remuneration of permanent employees at the lowest level against the UMR. Example:
The Company provides compensation for employee services in accordance with the Regional Minimum Wage (UMR) of the Province. Compensation for permanent employees of the lowest group is Rp XX, which is XX% higher than the provincial minimum wage set by the Government.

Table Illustration:
No. Business Unit Province/Area Provincial Minimum Wage Lowest Employee Compensation Percentage

PT XYZ DKI Jakarta xx xx
Business Unit X East Java xx xx
Business Unit Y South Sulawesi xx xx

F.21. Adequate and Safe Working Environment
This section contains information regarding the guarantee of occupational health and safety as well as a safe and adequate working environment provided to all workers, including the provision of worker health guarantees, provision of safe, clean, and comfortable work facilities such as toilets, dining rooms, nursing rooms, childcare, smoke detectors, and fire extinguishing facilities, places of worship, parking lots, and so on. Example:
The Company is always committed to providing safe and comfortable workplaces and facilities for employees and work partners so that employees can work well, always maintain safety, and avoid dangerous incidents. For this reason, the company continues to commit to carrying out occupational health and safety (K3) programs with targets for work comfort and safety through zero accident targets.

F.22. Employee Training and Capability Development This section contains information regarding employee training and capability development activities carried out by Issuers and Public Companies during the reporting period in order to support the implementation of Sustainable Finance. In this section, Issuers and Public Companies can disclose the average number of training hours per year per employee, programs to improve employee skills and transition assistance programs, and the percentage of employees who receive regular reviews of performance and career development. In disclosing the average number of training hours per year per employee, Issuers and Public Companies can disclose the average number of training hours per employee by gender and by employee category. Example:
During the year 20XX, the company has carried out competency enhancement programs in the form of certification, seminars, workshops, and training for workers. The realization of human resource development funds spent for the current year reached Rp XX billion. This year, the number of employees participating in training and capability development was XX employees with an average of 16 training hours per employee.

Table Illustration:
Description Number
Workers Who Received Training
Training Hours
Average Training Hours per Worker
Overall xx

By Gender xx
Male xx
Female xx
By Employee Job Category xx
Executive xx
Manager xx
Assistant Manager xx
Staff xx

Community Aspect
F.23. Impact of Operations on Surrounding Communities This section contains information regarding the impact of Issuer and Public Company operational activities on the community, both positive and negative impacts. Information disclosed can include:

Information on activities or operational areas that generate positive and negative impacts on the surrounding community, including financial literacy and inclusion.
Programs and operations with local community involvement that have been implemented, impact assessments, and/or development programs.
Example:
The Company has sustainability programs tailored to the conditions and needs of the local community. The Company has strategic programs in the fields of education, health, local economic development, culture, and environment. Positive impacts felt from these programs include increased capacity and quality of human resources in the surrounding community, increased welfare through community economic activities, and improved community health levels. In carrying out its operations, particularly in operational areas in North Sulawesi, the company has made maximum efforts to minimize negative impacts of company operations such as waste management, water management, and emission management optimally. As of the current year, there have been no potential violations of environmental regulations faced by the company.

F.24. Community Complaints
This section contains information regarding facilities available for stakeholders to report or convey complaints regarding matters contrary to ethics, integrity, norms, and suspected violations of regulations or actions that disturb the environment, and others. Community complaint mechanisms can be carried out through a violation reporting mechanism (whistleblowing system) or by submitting complaints via email or telephone hotline. In addition to disclosing community complaint mechanisms, Issuers and Public Companies disclose the number of complaints received and followed up. Example:
The Company has developed a complaint mechanism for the community which also covers social and environmental issues in the operational area. The Company has implemented a whistleblowing system. The community can report complaints in writing via email whistleblowing@ptxyz.com. All complaint letters will be followed up by an independent external consultant by verifying the complaints received. The Company opens a community complaint center via www.ptxyz.com or short messages via WhatsApp number 08XXXXXX. Incoming community complaints will be followed up by an independent environmental consultant.

Table Illustration:
Business Unit Number of Complaints Received Status PT XYZ (Head Office) xx Completed 100% Business Unit X xx Completed 50% (2 complaints), 1 complaint referred to authorities, 1 case in process Business Unit Y xx Completed 100% Business Unit Z xx Completed 100% PT PQR (Subsidiary) xx Completed 100% Total xx

F.25. Environmental Social Responsibility (ESR) Activities This section contains information regarding ESR activities related to community empowerment and supporting the business of Issuers and Public Companies. The activities mentioned are linked to the 17 (seventeen) Sustainable Development Goals/SDGs in Indonesia, where Issuers and Public Companies prioritize the goals to be achieved in accordance with strategy and type of business activities. Example:
ESR programs carried out by the company focus on programs in the fields of education, health, local economic development, culture, and environment. These programs are carried out to support the achievement of Sustainable Development Goals/SDGs specifically for SDG no 1 - No Poverty, SDG no 3 - Good Health and Well-being, SDG no 4 - Quality Education, SDG no 5 - Gender Equality, SDG no 6 - Clean Water and Sanitation, and SDG no 7 - Affordable and Clean Energy.

Table Illustration:
No. Type of ESR Activity Sustainable Development Goal Achievement Explanation

Establishment of Schools in Operational Area XX SDG No 4 – Quality Education
Fund Allocation Rp. XX
Implementation Period: Month XX to XX
Number of schools funded for construction: 2 schools
Entrepreneurship Training for PKK Mothers in Operational Area YY SDG No. 5 Gender Equality
Fund Allocation Rp. XX
Implementation Period: Month XX to XX
3 training sessions have been carried out with total participation of XX participants
Empowerment of Fishermen in Operational Area ZZ SDG No. 1 – No Poverty
Fund Allocation Rp. XX
Implementation Period: Month XX to XX
Provision of funds to help fishermen activities, with the number of fishermen assisted being 175 people

Sustainable Product/Service Development Responsibility F.26. Innovation and Development of Sustainable Financial Products/Services This section contains information regarding innovations that have been carried out by Issuers and Public Companies in efforts to carry out business processes sustainably. Sustainability innovation can be carried out in product development processes, production processes, marketing processes, distribution processes, up to the process of placing products and/or services in the hands of consumers. Example:
During the current year, the company has carried out several innovations related to product development, production processes, packaging, distribution processes, and innovations in corporate social responsibility (CSR) programs to support Sustainable Development Goals/SDGs. In the field of production, the company has developed technology in producing Product XX through green product innovation that has been able to reduce CO2 emissions by up to 30% per unit of product. In addition, by collaborating with 125 suppliers, the company developed Packaging Innovation with the development of packaging to reduce packaging waste. Through this program

The company has reduced XX tons of waste every year. In the current year, the company also runs the Energy Reduction Program, which is an innovation implemented in the factory and headquarters environment. This program has reduced energy usage by more than 40%.

F.27. Products/Services That Have Been Evaluated for Customer Safety This section contains information regarding the quantity and percentage of products and services that have been evaluated for safety for customers. This information ensures that the Issuer and Public Company only sell services for products and/or services that have been tested for safety and health through risk disclosure and partner selection, such as suppliers and working partners, and production processes that ensure product hygiene.

Example 1:
The company is always committed to offering safe and quality products to its customers. The products offered by the company are produced from manufacturing that has safety and health standards. The stages of licensing, certification, manufacturing, and distribution have been carried out to ensure customer safety. 100% of the products produced by the company have met safety standards and relevant regulations and have undergone strict supervision and evaluation, thus ensuring quality and safety.

Example 2:
The company's main responsibility to customers is to provide consistent and continuous product protection and safety. Before selling its products, all products have been tested for safety (100%), through stages XX, XX, XX. The company also always provides information on all side effects and product usage methods, all of which are written on the packaging, including the product expiration date.

F.28. Impact of Products/Services
This section contains information regarding the positive and negative impacts arising from Sustainable Financial products and/or services and distribution processes, as well as mitigation measures taken to address negative impacts. This information needs to be communicated to stakeholders to demonstrate transparency and balanced information disclosure, which is not only on positive impacts, but also on negative impacts or risks from every service for products and/or services.

Example 1:
The company has assessed all products distributed and sold to customers. In every product package produced by the company, information on the benefits of the product, raw material composition, and possible side effects has been provided. This information has been communicated transparently to customers.

Example 2:
The company conducts quality tests on all products sold to customers and provides warnings on products ranging from high to low risk. High-risk products, for example XX, will have a negative impact if buried for more than three months. Therefore, the product expiration date is clearly stated, along with negative impacts if consumed over a long period. Product storage methods are also indicated on the packaging to mitigate negative impacts if exposed to high heat.

F.29. Number of Products Recalled
This section contains information regarding the number of products recalled and the reasons. In the event that there are services for products and/or services that are recalled, the Issuer and Public Company must disclose the reasons for the recall.

Example:
In the year 20XX, there was a recall of product XX because one component had a problem. The number of products recalled was 167 units. In this regard, the company has taken adequate anticipation and actions and ensured that customers are not harmed. There were no customer complaints and no security incidents occurring regarding this product.

F.30. Customer Satisfaction Survey on Sustainable Financial Products and/or Services Surveys are one of the means for the Issuer and Public Company to communicate and engage stakeholders. The Issuer and Public Company need to obtain input from consumers as one of the stakeholders to improve the quality of products/services provided.

Example:
Consumer satisfaction is evaluated through customer satisfaction surveys every year. The level of customer satisfaction can be monitored through the Customer Satisfaction Index (CSI). In the year 20XX, there was an increase in the customer satisfaction index value from 89 to 90.6 out of a total score of 100. This value reflects that customers feel a high level of satisfaction with the products produced by the company.

G. Others
G.1. Written Verification from Independent Parties (if any) This section contains information regarding the existence or non-existence of verification conducted by an assurance service provider over the Issuer's and Public Company's Sustainability Report. In the event the report has been verified by an assurance service provider, the Sustainability Report contains information regarding:
a. the name of the assurance service provider (assurer) and the assurance service period; b. the Issuer's and Public Company's policy in selecting and determining the assurance service provider;
c. the relationship between the Issuer and Public Company with the assurance service provider, where assurance must be conducted by an independent party not involved in the report preparation process, so that there is no conflict of interest and the quality of the verification process remains maintained; and
d. the assurance report.

Example 1:
This Sustainability Report has been verified by XX, an independent and credible institution to conduct verification in accordance with AA1000 AS standards. The verifier party was not involved in the report preparation process and thus, there is no conflict of interest.

Example 2:
The verification process was carried out on date XX to XX in xx. The process was preceded by checking XX and so on. The verification result is an independent verification statement and a report for management consisting of improvement inputs for the next Sustainability Report.

G.2. Feedback Sheet
This section contains information regarding several questions to be answered and returned by stakeholders to the Issuer and Public Company in order to obtain constructive input for the improvement of the Sustainability Report for the coming year. The questions asked include, among others, regarding the completeness of the content of the Sustainability Report, the quality of data or information presented in the Sustainability Report, the presentation format of the Sustainability Report, and constructive criticism and suggestions from readers regarding the Sustainability Report. The format of the Feedback Sheet can be adjusted to the needs of the Issuer and Public Company.

G.3. Response to Feedback on the Previous Year's Sustainability Report This section contains information regarding feedback received on the previous year's report followed by follow-up actions taken in this year's report.

Example:
Regarding last year's Sustainability Report, we received 10 responses from different organizations, 5 from universities, 2 from investors, and 3 from NGOs. The input we received and have followed up on includes:

The use of inconsistent terminology;
The negative impact of the company's operations is unclear;

This copy is consistent with the original
Legal Director 1
Legal Department signed
Mufli Asmawidjaja

Compliance with environmental regulations is unclear; and
Employee details by gender are missing.

G.4. List of Disclosures in Accordance with Financial Services Authority Regulation Number 51/POJK.03/2017 on the Implementation of Sustainable Finance for Financial Service Institutions, Issuers, and Public Companies This list is required to ensure that all disclosures required by POJK Number 51/POJK.03/2017 have been presented in the report by mentioning the page number where the sustainability information disclosure is presented. The Disclosure List is compiled in the following format:

No
Index
Index Name
Page
Sustainability Strategy
A.1 Explanation of Sustainability Strategy
Summary of Sustainability Aspects Performance
B.1 Economic Aspects
B.2 Environmental Aspects
B.3 Social Aspects
Company Profile etc.

Established in Jakarta on date 29 June 2021
HEAD OF EXECUTIVE SUPERVISOR OF
CAPITAL MARKET SUPERVISORY AUTHORITY
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
HOESEN

Form and Content of Annual Reports of Issuers or Public Companies

Lineage: In force