Governance

Governance

Audit Committee Charter

AUDIT COMMITTEE

Audit Committee is an organ of the Board of Commissioners that assists the Board of Commissioners in performing its supervisory duties and function. The scope of supervision of the Audit Committee includes matters related to financial information, internal control systems, effectiveness of audits by External and Internal Auditors, effectiveness of risk management implementation, and compliance with the applicable laws and regulations.

Legal Basis
Indocement’s Audit Committee was established based on:

  1. OJK Regulation No. 55/POJK.04/2014 on Establishment and Work Guidelines of the Audit Committee;
  2. Indocement's Board of Commissioners' Decision Letter No. 012/Kpts/Kom/ITP/XII/2001 dated 6 December 2001 on the Audit Committee Charter;
  3. Indocement's Board of Commissioners' Decision Letter No. 007/Kpts/Kom/ITP/XII/2013 dated 6 December 2013 on Amendment to Audit Committee Charter;
  4. Indocement's Board of Commissioners' Decision Letter No. 001/Kpts/KOM/ITP/V/2022 dated 24 May 2022 on the Appointment of Audit Committee's Members.

Audit Committee Work Guidelines
The Company already has an Audit Committee Charter that has been validated by the Company's Board of Commissioners on 6 December 2001, as stated in the Board of Commissioners' Decision Letter No. 012/Kpts/Kom/ITP/XII/2001, and has been adjusted on 6 December 2013, that is through the Statement of Decision Agenda No. 2 of the Board of Commissioners' Meeting No. 007/Kpts/Kom/ITP/XII/2013 on the Amendment to Audit Committee Charter, in order to meet Bapepam-LK No. KEP643/BL/2012 dated 7 December 2012. Furthermore, in performing its duties and responsibilities, the Audit Committee also refers to Financial Services Authority Regulation No. 55/POJK.04/2015 on Establishment and Work Guidelines of Audit Committee. Audit Committee Work Guidelines can be downloaded here. 

The Audit Committee Charter, covers the following:

  1. Audit Committee’s Purpose
  2. Audit Committee’s Membership
  3. Audit Committee’s Chairman
  4. Audit Committee’s Term of Service
  5. Audit Committee’s Duties and Responsibilities
  6. Audit Committee’s Authorities
  7. Audit Committee’s Meetings
  8. Audit Committee’s Reports

Audit Committee’s Membership
Pursuant to the Committee Audit Charter, concerning Indocement’s Audit Committee membership which consists of:

  1. One Chairperson who is an Independent Commissioner and
  2. Two members who are independent and have expertise as members.

The Audit Committee is appointed and dismissed by the Board of Commissioners for a period of three years from the appointment, and may be reappointed for one next period. The term of service for the Audit Committee members shall not exceed the term of service of the Board of Commissioners.

The composition of the members of the Indocement Audit Committee as of December 31, 2023 can be seen in the About Us menu >> Management

Audit Committee’s Authority
The committee is empowered to review or oversee matters within its scope of responsibility, to access the Company’s documents, data and information, to directly communicate with any Employee, including the Board of Directors, internal auditor, independent auditor and any relevant parties and to advice from external counsel auditors or other experts as necessary.

Audit Committee Meeting

The Implementation of The Audit Committee's Program

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