To assist its supervisory duties and functions, the Board of Commissioners is authorized to establish an Audit Committee as mandated in OJK Regulation No.55/POJK.04/2015 dated December 29, 2015, regarding the Establishment and Guidelines for the Work Implementation of the Audit Committee (POJK 55/2015), and IDX Regulations. No. I-A, attachment of IDX Board of Directors Decree No. Kep-00001/BEI/01-2014 concerning Listing of Shares and Equity Securities Other than Shares Issued by the Listed Company. IDX Regulation No. The I-A has been revoked and declared invalid since 27 December 2018, then replaced by IDX Regulation No. I-A Attachment to Decree of the Board of Directors of the Indonesia Stock Exchange No. Kep-00183/BEI/12-2018 dated 27 December 2018 (IDX Regulation No. I-A 2018). The Audit Committee is responsible for establishing an appropriate internal control system, improving the quality of transparency and financial reports, as well as assessing the scope, accuracy, independence, and objectivity of external audits.
AUDIT COMMITTEE CHARTER
The Company’s Audit Committee Charter is available on the Company’s official website.
AUDIT COMMITTEE COMPOSITION
According to the POJK 55/2015 and Audit Committee Charter, the Board of Commissioners has the right to appoint members of the Audit Committee. The Audit Committee shall consist of 3 (three) members, one from the Company’s Independent Commissioner, and other members from the Company’s external parties. The Audit Committee is led by an Independent Commissioner as the Chairman.
According to the Board of Commissioners’ Decree (SK Dekom) No. CSS.061-2020 dated July 1, 2020, the Company’s Audit Committee is composed of the following members:
- Chairman: Dr. Hadi Cahyadi, S.E., MBA, MCL
- Members: Dennis Valencia, Liu Raymond
The SK Dekom also limits the Audit Committee Members’ term of office to 1 (one) period starting from the date of appointment of the members of the Audit Committee until the closing of the AGMS for the fiscal year 2022 which will be held in 2023.
INDEPENDENCY OF THE AUDIT COMMITTEE
To ensure independency and professionalism in fulfilling Audit Committee duties and responsibilities, an Independent Commissioner chairs the Audit Committee, which has 2 (two) additional members from outside the Company, where one of the members must be a professional in the field of accounting and finance.
Members of the Audit Committee do not have any affiliation nor are employed by any public accounting, consulting firm, or third party that provided services to the Company in the past 6 (six) months. Members did not possess any authority and responsibility to plan, lead, control or supervise Company activities within the past 6 (six) months, except for the Independent Commissioner.
Members should also not have any shares directly or indirectly in the Company, and do not have any family relations nor affiliation with the Board of Commissioners, Board of Directors, shareholders or controlling parties that may affect performance of their duties.
DUTIES, RESPONSIBILITIES, AND ACTIVITIES OF AUDIT COMMITTEE IN 2021
During the fiscal year 2021, the Audit Committee organized the following activities in the performance of their duties and responsibilities and according to the POJK 55/2015, the IDX Regulation No. I-A 2018 and the Audit Committee Charter outlined by the Board of Commissioners:
- Audit the Company’s financial statements to be disclosed to the public and/or authorities, including financial statements, projections, and other reports relating to the Company’s financial information;
- Evaluate the Company’s level of compliance with laws and regulations pertaining to its business activities;
- Provide independent opinion in the event of a dispute between management and the Accountant regarding services rendered;
- Provide recommendations to the Board of Directors on the appointment of the accountant, based on his/her independence, work scope, and remuneration;
- Review the implementation of audit by internal auditors and supervise subsequent response by the Board of Directors toward the findings of the internal auditor;
- Supervise the implementation of risk management activities carried out by the Board of Directors;
- Review complaints relating to the Company’s accounting and financial reporting processes;
- Assess and advise the Board of Commissioners on potential conflicts of interest of the Company; and
- Safeguard the confidentiality of the Company’s documents, data and information.
POLICY AND IMPLEMENTATION OF AUDIT COMMITTEE MEETING’S ATTENDANCE RATE AND FREQUENCY
The Audit Committee is required to hold at least 1 (one) meeting every quarter (3 months). Each meeting becomes valid and binding if more than half of the total Committee members are present or legally represented. Resolutions pass through deliberations and consensus. The Minutes of the Meeting documents and records every discussion and decision, including possible disputes that may occur. All Audit Committee members in attendance must sign the Minutes of Meeting which is then submitted to the Board of Commissioners.
During the fiscal year 2021, the Audit Committee held a total of 4 (four) regular meetings.