INTRODUCTION ON CORPORATE GOVERNANCE

ITM is committed to the principles of good corporate governance in compliance with the recommended best practices for the listed company and relevant rules, regulations and guidelines of the Capital Market and Financial Institution Supervisory Board or Bapepam-LK, and the Self-Regulatory Organization (SRO). In addition, the company aims to attain the highest international standards and best practices in the adoption and implementation of sound principles of corporate governance. In line with our Vision and Mission, ITM is committed to good corporate governance (GCG) practices through materialization of GCG Implementation Road Map in an effort to be an exemplary corporate citizen and truly world class mining company.

As part of the GCG Implementation Roadmap, ITM has developed its GCG Manual, comprising of the GCG Policy, Code of Conduct, Board of Directors Charter, Board of Commissioners Charter, Audit & Risk Oversight Committee Charter, Good Corporate Governance, Nomination & Compensation Committee Charter, Internal Audit Charter, and Corporate Secretary Charter.

ITM has also implemented numerous activities to embed GCG as part of corporate culture such as the implementation of workshop entitled CG in Action and CG in My Department in order to build awareness on the importance of GCG. Moreover, ITM has socialized the concept of GCG alongside ITM’s Implementation Roadmap as well as the contents of the Good Corporate Governance (GCG) Policy handbook and the Code of Conduct to all employees at ITM and its subsidiaries. Socialization was carried out among employees in small-scale groups (<40 participants per class) in stages, to ensure all participants had the time to discuss and obtain equal comprehension.

For the internalization process, ITM implemented various programs to cultivate understanding of GCG on an ongoing basis. This is a long-term process that must be continuously kept going by ITM to make the principles of good corporate governance are not only present on the surface, but are embedded in work ethics and employee behavior. Towards this end, ITM implemented several CG programs. CG Talk of the Town, CG quiz brought up lessons taken from cases of GCG irregularities or successes in a variety of leading companies. CG Sharing, articles regarding good or bad CG practices where shared and CG Day and CG Competition. Core company values ​​relating to the principles of good corporate governance were also promoted through posters, banner, digital signet, ITM Plaza, CG Portal and computer wallpaper for all employees are connected to the company server. All internal programs were communicated through a mascot called Mr. CG, who was specially created by the company to deliver all CG messages via a special Google e-mail account. It is also hoped that by aligning Operational Policy & SOP with the GCG policy on all processes, which is one of the milestones on the GCG Implementation Roadmap of Operational Policy, GCG will adhere to every member of ITM during activity processes and interactions with stakeholders