This Audit Charter is a formal document containing the recognition of existence and commitment from the Company’s leadership toward the Internal Audit Unit (“UAI”) function. This charter serves as the basis for the existence and execution of oversight duties by the Company’s UAI auditors and is intended to be known by employees and other related parties to achieve mutual understanding and good cooperation in realizing the Company’s Vision and Mission.

Legal Basis

1. Law Number 40 of 2007 concerning Limited Liability Companies
2. Law Number 8 of 1995 concerning Capital Markets
3. Financial Services Authority Regulation Number 56/POJK.04/2015 dated December 29, 2016, concerning the Establishment and Guidelines for the Preparation of Internal Audit Unit Charters.

Vision and Mission

The Vision of the Company’s UAI is to become an independent, objective, trusted, and responsive partner to the Board of Directors in its efforts to support the Board of Directors’ duties in achieving its targets.

The Mission of the Company’s UAI is as follows:

1. To carry out internal audits of the Company’s activities and operations;
2. To perform examinations and evaluations of operational and financial management control processes to ensure that the principles of good corporate governance are implemented;
3. To provide consulting services and recommendations to enhance the effectiveness and efficiency of performance and the quality of the Company’s management;
4. To continuously improve competence to become professional internal auditors.

Duties and Responsibilities

The duties and responsibilities of the Company’s UAI are as follows:

1. Prepare and implement the annual internal audit work plan and program;
2. Test and evaluate the implementation of internal controls and risk management systems in accordance with Company policy;
3. Perform examinations and assessments of efficiency and effectiveness in the fields of finance, projects, marketing, accounting, operations, human resources, marketing, information technology, and other activities;
4. Provide suggestions for improvement and objective information regarding the audited activities at all levels of management;
5. Monitor, analyze, and report on the implementation of suggested follow-up improvements;
6. Cooperate with the Audit Committee;
7. Develop programs to evaluate the quality of the internal audit activities performed;
8. Conduct special examinations if necessary.

Organizational Structure and Authority

The structure and position of the Company’s UAI are as follows:

1. UAI consists of 1 (one) or more internal auditors;
2. UAI is led by a Head of UAI;
3. In the event that the UAI consists of 1 (one) internal auditor, said internal auditor also acts as the Head of UAI.
4. The number of internal auditors is adjusted to the size and level of complexity of the Company’s business activities;
5. The Head of UAI is appointed and dismissed by the President Director with the approval of the Board of Commissioners;
6. In the event that the Head of UAI does not meet the requirements as an auditor within the UAI and/or fails or is incompetent in performing duties, the President Director may dismiss the Head of UAI after obtaining approval from the Board of Commissioners.

Requirements

The requirements to be met by internal auditors within the Company’s UAI are as follows:

1. Possess integrity and professional, independent, honest, and objective behavior in the performance of duties;
2. Possess knowledge and experience regarding audit techniques and other disciplines relevant to their field of duty;
3. Possess knowledge of laws and regulations in the capital market sector and other related laws and regulations;
4. Possess the skill to interact and communicate effectively, both orally and in writing;
5. Comply with professional standards issued by the Internal Audit Association;
6. Comply with the Internal Audit Code of Ethics;
7. Maintain the confidentiality of company information and/or data related to the performance of Internal Audit duties and responsibilities, unless required by laws and regulations or a court order/decision;
8. Understand the principles of good corporate governance and risk management; and
9. Be willing to continuously increase professional knowledge, skills, and abilities.

Authority

The authority of the Company’s UAI is as follows:

1. Access all relevant information about the Company related to its duties and functions;
2. Communicate directly with the Board of Directors, Board of Commissioners, and/or Audit Committee, as well as members of the Board of Directors, Board of Commissioners, and/or Audit Committee;
3. Hold periodic and incidental meetings with the Board of Directors, Board of Commissioners, and/or Audit Committee; and
4. Coordinate its activities with the activities of external auditors.

Code of Ethics

In the performance of its duties, UAI must have a Professional Code of Ethics that refers to the International Standards for the Professional Practice of Internal Auditing from The Institute of Internal Auditors, including compliance with the Internal Audit Code of Ethics as follows:

1. Integrity: The integrity of internal auditors establishes trust and thus provides the basis for reliance on their judgment.
2. Objectivity: Internal auditors exhibit the highest level of professional objectivity in gathering, evaluating, and reporting information about the activity or process being examined. Internal auditors make a balanced assessment of all relevant circumstances and are not unduly influenced by their own interests or by others in forming judgments.
3. Confidentiality: Internal auditors respect the value and ownership of information they receive and do not disclose information without appropriate authority unless there is a legal or professional obligation to do so;
4. Competence: Internal auditors apply the knowledge, skills, and experience needed in the performance of internal audit services.

Dual Duties

Internal Audit personnel/officials in the Company’s UAI may not hold dual duties or positions in the company’s operational activities, either within the Company or its subsidiaries.

Thus, this Internal Audit Implementation Charter of PT Mutuagung Lestari Tbk is prepared and must be implemented by all Internal Auditors with a full sense of responsibility.

1. Validity period and evaluation:
   This Charter was established by the Board of Directors on March 24, 2023;
2. This Charter will be periodically evaluated for improvement.

BOARD OF DIRECTORS

Arifin Lambaga

President Director

Sumarna

Director

Irham Budiman

Director