INTERNAL AUDIT UNIT

Internal Audit unit of PT Total Bangun Persada Tbk (TOTAL), that was established since 2007, represents the management's partner in achieving the Company's objectives whose duties is to perform audit and consultancy function in an independent and objective conduct.

Internal Audit Unit has established an Internal Audit Charter ratified by President Director and approved by President Commissioner on November 19, 2007. The Internal Audit Charter serves as a guideline in discharging all duties of internal audit.

TOTAL's Internal Audit continues to improve and provide all activities with direct appraisal concerning supervisory function in the activities' implementation. Such conduct is aimed to remain update on the development of the increasingly complex construction business. In addition to complying with regulation from Indonesia Capital Market and Financial Institutions Supervisory Agency (Bapepam-LK), the objectives of establishing Internal Audit Unit are:

• To conduct a supervisory function and ensure that internal control on functions, activities, and effectiveness in risk management is in accordance with the Company's policy.
• To ensure that the Company's resources are utilized maximally, effectively, and productively.
• To provide input to the Management which can be practically implemented for the improvement of the Company's operational performance.

Head of Internal Audit Unit is appointed and report directly to President Director.

The position of the Head of Internal Audit Unit is currently held by Helen S, S.T., M.M. She joined TOTAL in 2003 and was appointed as the Head of Internal Audit Unit based on the Decree No. 058/A.4-04/II/2018 dated February 1, 2018. She was born in Jambi on October 7, 1979, and started her career as an Engineer at PT Perkasa Carista Estetika in 2002 before joining the Company in 2003 as a Project Control Officer. She has served several key positions in TOTAL, among others as a Project Control Manager, Commercial Manager, and Deputy to Dept. Head of Internal Audit.

Responsibilities of Internal Audit Unit

Responsibilities of Internal Audit Unit cover:

• Conducting audit and assessment of the adequacy and effectiveness in internal control for the purpose of ensuring the implementation of organized internal control applied in all levels of management.
• Conducting analysis and assessment in financial, accounting, operational, and other sectors.
• Conducting assessment of the implementation of GCG and risk management.
• Identifying all possibilities to improve efficiency in utilizing fund, resources, as well as to enhance the Company's activities.
• Providing constructive input and information objectively concerning activities evaluated by parties concerned.
• Preparing report of audit activities and the highlights of audit findings, as well as reporting the findings and recommendations provided to President Director and Audit Committee.
• Maintaining open and effective communication with Audit Committee.
• Performing duties with optimum professionalism.

Work Mechanism

Internal Audit Unit annually prepares Annual Audit Work Program for ensuring that the internal audit activities operate effectively within the allocated period of time. Prior to making a request for approval from President Director, Internal Audit Unit shall consult and seek for input from Audit Committee in terms of the work programs already prepared.

The work mechanism for the audit process is conducted based on the following stages:

• Performing audit preparation by performing preliminary analysis.
• Preparing Individual Audit Work Program (PKAI) and seeking for input from President Director and Audit
• Committee on PKAI already prepared. Soliciting input from President Director and Audit Committee prior to performing audit process and preparing Draft of Audit Report.
• Preparing Audit Report (LHA) by submitting the draft and soliciting input from Auditee concerning findings and recommendation given.
• Monitoring, analyzing, and reporting the follow up recommendations for corrective actions given in the Audit Report.

Independence in the Conduct of Duties

The implementation of independence of Internal Audit is aimed to achieve the Company's objectives by implementing systematic and discipline approach in order to enhance effectiveness in the process of risk management, internal control adequacy, and the Company's corporate governance.

Internal Audit Unit functions to plan, perform, and report their main duties and functions in accordance with professional judgment and with prevailing audit standards. Audit assignment should be freely and independently performed without any influence from any interest and be based on the existing evidence or fact. Therefore, to avoid any conflict of interest and to ensure its independence, Internal Auditor is prohibited from serving in double positions as the executor of the Company's and/or the subsidiaries' operational activities.

In performing audit programs in all operational units of the Company, either in Head Office or in the project sites, Internal Audit Unit is entitled to obtain unlimited information including accessing all data, information, documented evidences, bookkeeping records, reports, as well as to make inquiries for information from management or personnel who are relevant to the audit process.