In accordance with Indonesian laws and regulations, particularly UUPT, the decision to pay dividends refers to the provisions contained in the Company’s articles of association and the approval of Shareholders at the GMS based on the recommendation of the Company’s Directors. Dividend payments can only be made if the Company records a positive net profit. The Company’s articles of association allow the distribution of interim dividends provided that such distribution does not cause the Company’s net worth to be less than the issued and paid-up capital plus mandatory reserves. The distribution of interim dividends may not disrupt or cause the Company to be unable to fulfil its obligations to creditors or interfere with the Company’s activities. The distribution of interim dividends is determined based on the decision of the Company’s Directors after obtaining approval from the Company’s Board of Commissioners. If at the end of the financial year the Company suffers a loss, the interim dividends that have been distributed must be returned by the Shareholders to the Company. In the event that the Shareholders are unable to return the interim dividend, the Board of Directors and the Board of Commissioners of the Company will be jointly and severally responsible for the Company’s losses.

By taking into account the Company’s financial condition from time to time, the Company plans to pay cash dividends to all shareholders at least once a year. The amount of dividends to be distributed is related to the Company’s profits in the relevant financial year, without neglecting the level of the Company’s financial soundness and without prejudice to the rights of the Company’s GMS to determine otherwise in accordance with the Company’s Articles of Association.

After the Initial Public Offering, the Company’s management is committed to distributing cash dividends of at least 10% (ten percent) of the Company’s current year net profit after setting aside mandatory reserves starting in the 2023 financial year with reference to Law Number 40 of 2007 concerning Limited Liability Companies as well as Capital Market laws and regulations without neglecting the level of the Company’s financial soundness and without prejudice to the right of the Company’s GMS to determine otherwise in accordance with the Company’s articles of association.

Determination of the amount and payment of dividends on these shares will depend on the recommendation of the Company’s Directors by considering several factors which include retained earnings, financial condition, liquidity condition, future business prospects and the Company’s cash needs.

Dividend Distributions Since Intial Public Offering