Government Regulation No. 36 re State Forest Public Company (PERUM PERHUTANI)

.....-------------.............. 'GENERAL' ............ ------ .....- ......... mE PRESIDENT OF THE REPUBLIC OF INDONESIA Goverl1:lent Ret:;ulatiol1 of the Republic of Indonesia Number 36 Year 19e6 dated AuGUst 23, 1986 R E STATE FOLlEST PUB1IC COLIPANY ( PELr.UI:l PElU-lU TAlU) THE P~.lE3IDENT 011' THE REPUBLIC OF INDOnSSIA, Considering In view of PM/09/10 : a. that with the prorr.ulGfJ.-!;ion of Governnent n~.! tion Humber 3 Year 19D3 re Promotion and Sup~ yision Procedure of Depro..tmcntaJ. Companies lP.2:1~JAN), State Public Comp arri.en (PE11UI.1), state Limited Liability Com~~1ics (P~1SERO) as ul~eadJ ame rd ed b~r virtue of GoverlT.lent Regulati.on Num.. ber 28 Year 1903, the coorddnata.o n of the State Forest Public Comp any (Peru:n Perhutani) eotab .. Liahed by Governnent TIeculation Nur.lber 15 Year 1972 re stat e Forest Public Company ani Gover.... rnent Heculation J'Ur:lber 2 Year 1978 re Addition of Production Units of a state Forest Publio Comp/;l,i.'1y, shou.ld be ad justed ; b. th8.t in connection vii th the matter mentioned in letter a above? it",is conof.d ez-ed nececcary ,0 rer',rral1(;e saicl State Fo:"est Public Company (PEitUa PEJ.HUT1JU) ; : 1. Article 5 paragraph (2) of the 1945 Conatitu .. tion ; 2. !Jar... Iwnber 19 in lieu of Law Year 1960 re Sta.te Owned COr:l~2;.:~es (St2.t e Gazett e Year 1960 Number 59, SUp]lelile~t to state Gazette Number 1989) ; 3. ~aw Number 5 Year 19:57 r o Principle Provisions on Forestry (stato Ga::.;ette Year 1967 Number 8, Suppleli1errt to state GD.zette Number 2823) ; 4. ~aw HUll1bcr 9 Year 1'969 re Stipulation of GaveZ:IJ ne nt nec;ulation In Lieu of LE'.w Number 'l Year i969 (state Gazette ~(ear 1969 ~lumber 16, Suppl ~ merrt to state Gazette Hur1ter 2890) re Eo rras of State Owned Companies 2.3 L2.\'l (State Gazette yonI' 1969 Hurnber !,O, SUP:l.)lCiTIont to state Gazette Number 2904) ; 5. Governnent ReGulation ~b~~cr 35 Yeax 1963 re T!'al1.sf er of E;:ploitation of certain Forests to the Stac3 OW1~ed Companies ; 6. Governnent... Tral1.91ated by OAFI 3162 To stipulate 6. Govor-rmorrt ne2ula'~ion I6.,'.'nbor 3 Year 1983 re Pz-orno t i on aal Supervir:d.o.i:i Pr'o oodu r-e of Depart... mental Companies (P~;(JAi\l), S'bp~te Public Compa... ni. es (PKrrEI) ard state Limi-ijed Liability' Cora .. panics (PER.3E.:·W) (Sta.to G~.L;()tt() Num cez- 3,' Sup.:. p.l.eme nb to Stute Ge.zette Number' 3246) as already am errl ed by virtue of Governnent Regulation Num ber 2U Year 19U3 (Ste.te Gnzetto Year 1983 Ni.1m': bel" 37 ). III:.S DECIDED : : GOVEtlNMEn'r n!nULldIO~r OF TIIE n.IiPUBLIC OF INDONESIA ~\Z STil.TE FO.L33T PUilLIC CO!:'iPJl~JY (PEam~ l?Em-rUTAHI) CHl'.PTKt I G&IRLiLL Pi~OViSI('NS lxx...ticlo 1 In this Gover-rmcnt Rec;ula. cion monrrt b~r : 1. Gover-n.ierrb shall be t:le Gov er-rmerrt of tho 2e:Jublic of Indono.oiaJ 2. President oh&J.l be the President of t~'le I:e)ub.l.Lc of Incloneoia j 3. Mil'u:jter oh~ul be the j,!ini.:::d;er r-espo no i.bj,e for the field of forestry; 4. Director General shall be the Direc-cor Goneral r-eapo nsdhl.e for tho field of l'ores-Gry ; 5. Superviaory Board shall be tl1.e SL'!.p orvisory Do8rd of the Foroot Public COffi]arw ~ 6. Oompa..ny shall be t1lG state Forest Public C0J11)e.ny, abbr-ev'i rvt od to Porum Per-hu t ani, ; 7. Board of Directors shall be the }Jo~;...'Y'<l 01 :::lirectors of Pen1J1l P er-hutani ; 8. President Director 811[').l be the Pre::;il1.o1l"~ Director of Porum P er'hu..tani ; 9. Emplo~roo nual.L be emp.l.oyo e of Porum P er'hu t arrl, ; 10.Promotion ahcd.l 1Je ac t i,vii;ies of Civir{'. c;uiclo.rlce to compcnres in pl~.nniJ:l-L',1 e xe cu tion 8..n.~ control Y/i tn. -G~1.e purpose thv;(j t:1C compani.ea call e xe cu -lie tho:Lo:' tas~'.i.: <,.:xl f'u nccd.o na eff ectively ani el'ficiontly e.nJ. can d eve.Lop pl"<::Joi'ly ; 11.Supervi::.d.on :::;h;),11 be bhc onti.r-e pr-o co ar: of cval.uat Lng ac t i.vitioo . toward. Comp ani.ea with ·\;110 0 b j'3c-cive t!lo.~ ·G~lC corl1:DnniE.es ollaJl :Un. p Leraent their functior!o p rop cr-Ly C')'ii. cu,cccssfully achieve tho alrcau.y sti.;:Jl1.lated objcctivon ; 12. Aucli tine ahal.L be ac'tLviti 00 of eV21u2.ti:l1C companies by vvny of compar-Lrv; the true cordi tiol1. with the corra-cion wh.i.ch must be o o rduotcd , both in the fiold of fi11['.'-lCO eX'Il/for in the f'Lel.d of toclll1.:i.cal Oll8l"'Utioi1.,S ; 13.r.'I8.l·.lD(jCi1lcnt shall be nct:i.vities of pLo.H1.i11{, , orC2,nizbJ{~' execu w tion alU co rrtz-oLli.n.; the comparri en pu.r::;uant co the p rcmo -Cion ou'tLi.ned by tile r.1inistc:'" ; CIll.?'rE11 II ... PM/o9/10 3163 .ll:i.'tiicle 2 rhe 9stablis.mllent (l)'J.U "'c.".e 2,C·c:i.v i c:L es of 'clw Pen1l11 Perhl.l tani estab lished b~r Gove~l::i.1l1enl; E8tulo;l;:i..ol1 ITumbGi." 15 Yca..--:- 1972 as alre2.d~r riilended b~:' virtue of' Gover... J.l~.lC11.t 110(';1.12:C]. 0:,1 !~l'.Hbel" 2 Yee..r 197 C, cllall be cOi1.cilUed bas oel 0:). ':~~lC Drovicio r~.f:j of' this Gover-nn errb Re bU1ation. C:IAP~.;E~1 III COhIP141-iY' 8 .t\:-l.'iiQG.r!S or .tlSJOCI.tl.,(ION III il~8 #G PaI'#G Genervl Article 3 (1) The oomnany as l'efcr:;:,ec-:' to in A:rticlc 2 fJ'JCrl1 be a state owned urrlol"td::i.l't, "uocly 2,rJ8:i.{:j,1(':(:~ wi.bh -[;]10 -G3,[Jl:·:s G,l"Xl competence -to im plement; pJ-a:1rlil'Y~? iM:>J.12,C',OdOllt? e:;::"f!}.oi·c ac i.o n arrl protection of forests in the work 'CCl"l"ito:L"'y tl1.ereof ; (2) The company 8:18.11 po:;:fon;: its op or a.t Lon based. on the provisions in -bld8 Govc:cnnen-G TIec,ulo:c:i.on. alL. 'C~lO prevcJ.li:nt3 logisle:cive ree,ulatio:"lS ; (3) Wi t11o\.1.·(; IJ1"e .iud Lce to t:10 i)J.~ov:i.sio:l,s o.r~ co rrt ad ncd in this Gov er rm errb ~?ec;ul2.tioll, Indoi'lo~Ji[',l1 Lo.V1f':; shc~U- bo applicable to thi:J C01,1:p o;s.~~· • Gceoril. Part Do.ni.c i Le A...... Giele ~. \1) The company shal.L have i-Ls d or.ti c.i.Le o.~:cl h08'c;' office in J81cnrta (2) A Ch8.11(·0 of compr.ny ' s <.,"':.m··::i.cilo 8l1L~. ~:'o2.ll olfiee shall be sti 1)L1.1at cd 1Jy -ehe Prcsicle:"Jc a~ the Di'O.:)o:::2.1 0.:: tJle T'linisto:..'. Thil"ll. P 8.:;..... ·;; Nature, Ai.Ll[J and Objee-c:i.v 1.3 G ta... cicle 5 (1) The ne;;jtl:;:'o of vi.coe f or' tJJo profi'~1J >auou 'r!j09/10 3164 FOD.r!';}} Pm..t Work Terri tory and Underteli.:inc; Field Article 6 (1) Ti10 C0111P&~YcS \,iO:l:');: ber-rLt or-y 01181J. coven" all ~tatl3 Forects ava i Lcbl.e in tho loli Grade R'3gions of ',[ect JavE p Centr8.1. Java anet.3:JSt -Jav a exc cp t tile Natural Res er-vau Lona, Tourist Forests D.':'lc1.. Ka bi.ona.l Parks. (2) T1'.e Co"!'pn.ny' c wor-k territory shall b o d i v i.ded into the follow inG wo.rk terri t o-:cy v.ni·c s : 8. ~ork territ~ry illlit of Central JCVQ p hereinafter referred '1;0 as Central Java Unit 1. b. \!or~;: territory uni t of East J8.va~ hereL~o.ftEJl' refer!'od to 0.0 East .Iava Unit JI. c. ~.7orl;: terri t or'y illl:i. t of ,lest Java, heru:i.l1c.ft or referred to Doi/est .Java lillit III. (3) Tbe d i.v i e i.on 0:1: ella WOI'~C territor~,r LT.l.ilis into tho foreot mana gGi~1ent u...li t s , shc:l~. be e t Lpul ab ed by t r-o J:;:hlister at the pro pos ........l of the Boar-d of Direc tors. Article 7 By ooservine:: the ec ono.ni,c and preservative pr-Lnc Lp'l ea and to 0:1 ·sure the aaf e ty of tb.u ~tate property, tho Corll1Ja.'::lY shall exec at a/ inlJlleiilGl1t the follo1!'li:t.:..::; operations: 8.. forost oxploit8.tiol1. covering ac t Lvi.tLcc 01 plalltillS s madrrt enanc e pr-oduc t c o.l.Lec ti on, )roc essine; ana. jjlC.r~:etin'i:;. b. other LUldertakilli?;:J whi.c 11 can support tJJO achi ev emon b of the Company's ob j ec t iv eo with the approval of the r.'linistor. Fifth Fart Capital Ar t Lcl e 8 Tho Company' 0 C2.1)it:..,1 s ha.lL be tho St3~'::' C:Dsots se~':::(~~:'CLtl)d fran the state BUdget and divided into Sll"l"'(.JO. ( 2) (3) Tho amount of 'che Compcny t s capital 0110,11 b o 0ClL1c:l to the en tire value of tho St2.t;) auao t.c Lnv cc t fJl". Ln the COi:·iPCl.':'J.~{ as rof8r:cod to in Ar-t i.c Lo 2 y baaed on t:liJ oci~JulDtio:'l of tha lIin istor of Ei.nanc o in ac c or-dano o with t hc cc.Lc al.ab i.on c onduc t od jointly by tho llin::.:Jtry of Pi.nanc 0 ai.d 'Cl l ;) Iiillj.3~IY of Foros try. Any addition or cle0.:lction of capital ol'i,e;:i.nr.;.tinc; f'r-om tho acpar-a t od Ste.to acuot a , shall be c ond uc co.]. by a. Govor-nmont ::tg. gul.at i on, Th':) c omj.any c an il1.crLJaso its capital rlith tho f'und f'01'i11Cc1 and ac c umul.at ed intervally according to )lihrJ provLs i.on of s.rticla 5'1·. Tho comp~lY shall not keep a silent nor secret r0801~G. ( /.-, :'"11.J) ..r:. c ••••• " Pr.1/10/10 3165 (6) All liqnide e qtri.pment which aro not iDlillOc.ia.toly rcqLl.irod by tho Company ahal.L b o kopt in tho St3tO owned banks appr-oved by tho ministor. Article 9 (1) Ti'lO oxpcndd t uros fo:.... investment c onduct cd by the Company can ori:-;h12t e from ~ a, Cornpany" s int ornnl, f und ; b. State deliv(::l~"'ych:i:'cu(~h the State DLlC.1cot 0. Doncc t i.c or fOI'oi m l Loanc ••• .;rL ~ d, Ot nar 10[;;81 aourc ca, (2) ~Ch,J investmollt bU('.Go·~ ahal.L be fOl'YI2:i:'<.~';)d in tho Oompanyt e budge \"/:101"02;:,) if t:10 invoncli1cm.t budgut is sL'.~)n~iVG~Jd in thu rol£'.tivo fiscnl year v t ho invostL1ent bl'..d~et shall b o submitted tOGother vzib h the ac1G.itio:lc.l bnc1C0t or Company" 8 bnclGot alJ10nG.110nl; of which the submission ie conducted. puz-aucnt to' tho proc odur-o us referred to in Article 21. Article 10 (1) Tho c ompany C<:'l1 obc aan and utilize tho f LJ11C:' S ob t afn od to dovelop i'GS buo i.ncus tIu"ouCh the issv-IJ.l1C G of b cndn or tho ot hcr- leGal means. (2) Tho Le suanc e of bonds or othor lCG2,1 uecnc as reforrod" to in parc;~raph (1) LncLudLng t hs provisions reL:~Gecl t hor-o t o, shall be rOGL1.J.ateci. ill a Govarnmerrb H02ulntion. Article 11 Any activity of c.101ivo::'y>" t ranofer , ir,lpocit.:i..Oll~ \!l'itins··off of fixeQ'8SGO~Us r-oc e i.p t of i:10G.iUIu/long t cr'm Loa.. .o , ;:;rCl'1tillC of lcanc of what ev er- fO::'i)1 and waJ'y not to cOl18ct anymor-e end writing off of r-ec ei.vab'i.es <..~::.-:d :~;oocls stock f'r om tho no o ount , c sn be con~ ducteQ by tIl:.) BotH'e"'.. of Di:.:'()ctors with t.ho pC:c"jlit of tho ni"';'·lj.::J·~cr BftCJJ:' t he r,Ii:i.listol... 11.~'8 ob t af.ned provd oua approval from tho l'J..l.l.is·ter of .Pil'wl1c O. Article 12 The uSS.5.G:i.11i1Cllt of a6..C.itiol'isl tasks to tho Company beBic1.o[~ its main task cnLwinG f i.nanc i.c'l. c ono equenc ec to thu C01i1P2.ny'S bae:'set shall be S'~ipLl1att3d by 'the l',i.i.J d.8t or aft er hav i.nr; ob k Lried appr-oval, from the Ninist 61' of li'illm:~Ce. Sixth Part I\~lane.cem8ntp Promotion and Zxec Lltion Article 13 The c omp.my sh211 b o c:.dj'li:rdatrat ed and fllCJ.l2CeQ by a Boar-d of Direc tors c ons LsrtLnr; of a Fl'csj.c1ent Director arid max'i.ma'lLy 4 Directors in ace or(1£\1'1C e with thai!' ~:'9spectiv e business fields. A.l,cicle 14. (1) The promotion to','121"("':. \;118 c onpany ahal.L be c onduc t ed by the I.IiJl:i.st~1r in \"Vl'.ic~1. ill101!:~m'')11tation s::::111 GO assist:'1d by the Dirce t or GeYlel"CO'J. bas3d. on tile provd ai.onc fi-lrther s-tiipuls.t ed b;-{ t ~10 I1i:r:,j.s t O:i.... The •••• P1i/10/10 (2) The Bear-d of Ddr ec t or-e or the Preoirle.n t Ddr cot or' for and on b oh[:.~l:e 0 I: tlH3 BGore. of Ddr oct oro Sllr:1J. roc oi, vo diroctiv ou :~ror:'l 0..(1C1 be l:'0sponsiblo to tho Mird.stol'\ on tho ceneral policy fo:,:' ·porforr,ling. t:1.e Company ' s ma.i.n tasks and other mat t er-s ~onsidered necessary. (3) The f'unc ti 0112.1 mLdllistra t i.v s r-e spons i.bility implomcntati on of {;h8 Company 00 H state:own.ed .undertakins b cdy to tho Gov crnmcnt , in tlli~ .~~s3t4e r;Ii.nister and tho D,1iniste:,:, of Finan co shall 'be conduc t ed by' tlle·'PJ.:"o'sido:nt Dire~ tor on behalf 0'1 tho Board of :Directors. l~rticl\3 15 Tho tuslm and C ompe t eric e of the Boar-d of Diroc ~ ors ahal.L be as f o.l.Lowe : a. to 1 ccd , admi n i.s t 01'\ and mar.age the c OL1l)o.r.i.~r pt}.r8Llan-c to the COnl}Dny' 8 objectives and e i no by al.wcyr: enci6.:l\.'c,uring to in creaSD tho Company's efficiency and. effectivC'ness. b. to c ont r ol., maintain and administer the ·Jorl~~la.ny~ s 8.S3Edjs. c, 'co repl'esuI.:.G tho Company inside and oal;:Ji(~.(j t~lO c our-t , d. to implement the CO~1oJ:'al policy inadJdnistratincs tho company already outlinecl by' the Minister. e. to stipulate tho COjj1.DLl.l1Y'S policy in uc c or-dunc o with the sen el';:!1 policy stipuIC'.Gecl by the h~inisteI' f', to pr-e par-e tiii1cl~r the c ompany ' s annuul, work p18.J:l o onp'l at e with the financial bl.'!.rle;ot ~ g. to conduct and maf.n t a.i,n 2. COf,1pa:i.1.Y's ao c oturt i.n-; and cdmi.n i ctr-a tio:i1. in aCCOl,c..8:i.1Ce wi t h the prev8.ilinG nor-mal. practice for a c om92.l1Y" h. to pr-epar-e tho c ompany" S or~allizatiollD.l composition c omjil.cb e with its job specification; i. to appoint and disl:1iGS c ornpany ' s. e::nploYG:Js pursuant to tho pr-evai.Li.ng pcr-connc'l ro::,alations for c oI:~~·alli0s. j • to clet 'Jrnd.:nGsnlc.ry, pOl1~~;ion/old. BEG sllo':L:l:i.c,::: 8.11d othor in c OIilO for tho C OT:!~lc,:!.lYv s oq.~l c;r'30S and to 1'IJ2:alate 811 othor per-o onne'L aff~.irs ill ac c or-danc e wi t h thc: DrOvaili110 J.o.:;:i.slatiYo reculetions p k, to pz-ov i d e all Ln f or'mc t Lon on the COLl]J21::r f 8 condition and o)er~ tion~ both iD tho fOI'Fl of anr.ua.L r epov t '.1l:'c'. pOl'iccb.ca.l r-cpor-t s .9L1.I'SL1.2.nt to t ho pr-oc o.lur-e and time sti.pnJ~":.tc<l in t his Govel'n morit Roeul:;..c i cn and each t i me requ8S~~)J. b~r '(;:10 II'IL'lisliGI'o 1. 'lio pcrf oz-m ot he.r oblic;o.tions based 011 tho rlinister~::~ (~irecdjivEJs. Article 16 (1) In pGrforrlunc the c ompany" s mai.n t acks a. Tho Prc s i.d on t Di ·~'e~ i; or shalll1ave t 1:'o ~,"i;3ht and aut hc...~i ty to act on '\,)01:'81£ 0: tho Board. of Dij.'octOI'S' b. Tho Diroc'tol'U si:.,-~lJ have the rj..r~hc OJ'll:. cC·;1:~:;t'Jr..8G to ::.ct on b eha.l.f of tlH3 r.o~\.rcl of Directo:','s~ l~GS~)3ctive·J.Y for 11:'8 fiolcl 8.11(l witllbl tile lLi1its Qotc:;::'nin(}c":. i:1 th3 re;ZLllation on or-dor-Li.nos e [".11(1. p r oc ~al}.r8s of irjl~)le.::j..~nt:~.nc the DOLlro. of Df.r ec t or" s worlc, (2) :if thc • ~ H E,1j'iO/10 3167 (2) If the P~.:'es~ del1.t Dil"ec-[;o:-.." pcrmanentLy ccnno t p erform his -casko or if sC'.ic1 f'u.nct i.o n becomes VaCI?.ITli 2.n1 his Gil bsti-Lute has noc yet b00~'.1. a?)oirrcecl or ll8.8 ::10t yet n eLd his tasl;:s, the poat of "C.:lO P:"8siclen-c Di:i.... ector ohall bo llCJ.G. b:r the oldest DirGe tOl" Ll 'C:le uer-vi o e pe:cj.o& based. 0:11. the pi"ov'isional ap110Lilj Plene by the minister, a~ if' said Director is unavailable or lJerm8.l10l::cl:r canno-t :101d tIle positio 11. either, :::laid position s112J.1 be 118lc1 b~T ano ther' Director baseel 0:1. provisional assi@ rllej.'):c by -G.b.e I!IinisteI'1 'both with the 2l1."~ho:;..it;}r am compet ence 0:1. the PI'esicl errc Direc-'cor. (3) .i.r 211 DOilJbel"'s oi.' the Doa:;:'C1 of D~ reCC01'G permanently CRl:"!-.'YJ.Qt pe::'i'o::n "iilleir tao).:o oJ." t::.e l)Osts of tho :)oe.:;."d of Dirsc:torc are enciJ:,eJ.;r vacant 0)xl "i:i.'."leir SUb8Cil;t:~-i:;eu ll2,VO not yo'" bcen appoij.1tcC'.. 0:"" h ave noc :'et l"1.el6. tlleL:- pO;'::-GfJ, for the t~ rJ.o bei.rv, "VlO CO;.\l~ai1;Y' 8 C.dDLl; otratioi:. a:1:.... >!::;,11E',GCi~lent shall be oo rr.u ct cd b~r an Ac-i:;L~{; Di:i:'octor a';J.Joii1:GeC.. 'by the ~:Iini:::tol~. (4) If pO::."fOl':lill('; ito -Gc,,;.:l::u 2,:il comp ete nco 2.:3 rcferred to in ar tiC}.G 15 le"c-c e:;,,' c, t;le :,10£'.:<.'(1 of :Direc·coj.'u can implemei.~:c it self or clcloc,s:[;c its 81.1·ch.ority to : a. one 01' fJeverel j;lembe:;:'s of the D08.i"'<.:' 01' .Jil"ec-GOl's, or b. 011.0 0:;" sovel"pl CO;~'lPLl..n;,/' [;I ciJl)loyees )o·[;i1. inliva.du al.Ly ard jointly, 0 ...."' c. o·~;.lel' )G:"'son or j)O(-:'~T. especd.al..J..~r appodrit ed for said purpose. (5) The o:.~'c1.e:;:lil1.es:J an.i. \loj:,l( pi"ocec:..Lu'e r..: of 'l;~10 :~08.rd of Diroc"~Ol"S ~S' )""'·;-·l .--.··.('u. -::0 ';J1. ·'-'-'·'''l·-·-'"'a'Jl' (1) ("'J:1'111 ~'e ''''e:'ulatecl .: 11. ·"c,r·ulo.c... . V~ ... "'.L.J...# v ~...&.... L.~ ~"\....;'." .:.. .. 't:';>. \,. ..,J ""- w .... """" v" . Cion to :)0 f:j·cipul<?G ci}' ~)y the Doo.:t\.". 01 D:i J..~OC·:jOl"'S withlihe 8.11 ~. lh'OVC'J- o,,;:c.1.1.e minis·Cel'. (6) Tho o alo':;'''ie:3, alloWQ:i.:coCl, emolumerr'is a:'Xo-;' ochcr- income of 'cho DO[.tl'tl. cf' .JJiroetors r.l'2:t:.~)OTfJ ahal.L '00 s"l;i.'.)ll.~l..G.ted by the miDis tel" by o"bfJe::."'vi11[, tho lJrovailil1-G i.E'ovifJior.-:h ArtJ.. c1 0 17 (1) Tl).c j~lG;"l~)OriJ of the ]]0<:'':;'''<1 of Di~cecto~:'iJ ~J~"l,-'.J l be appo i.rrt ed arrl clisi"ilisscC:L 'b~r the Pl"'G8:L('Q1.l.C e.t 'C;1O i.Co~)ocJel of tn0 I~iniG'cG!' at·co:;.' ::lec:.:;.'iY.lf, tilO cOlx.J:i.G.o:""o.tion 0:;:' C:lC L~irti .. oter or Fir).c~:"lCO. (2)Th8 rlGl,l00:t'S of the 3]02:..'(:' of Directo:;:'8 shall '00 appoi.nt od fo:;." . ~ / ' f ~ (". ) - ,., I I I , • I. .'."a p cr-a.oc ucrrn O' ) r a.ve yoars <:'..n~ 0): COj:' 'eflO "eOl"ID~:rJ.(:l:GJ.C):l 0.1. hi.o tOriH of office ho CC<,D. 1)0 r-e app o Lrrbec.• (3) I;."l tl'le C~",808 mont i o nod hcreurd cr-, t.:le P:.:,ofJiclont E',t the :,:;'"'0 pospl o;' 'l;~lO J:\1il~j.OtO:i..· CD.:i.l c1.i::.nnis:J all 0::"" o nc of 'Glle momber:J of "c.l-w ::Jo3,J.'cl of Di:-C0C-COj~'U, c:.08pito bho 'cO~C;-'l of offico ao ro :l:orJ.'oc."" to in P8..l"[1.L:,"o,)l~ (2) has not yot; "000:1. "Gcnnil1utcG. cluo to : a. tJ.10 Ell1.ta;ciol1 of funcc i.o n for 'C:'lC iaGo:"o3-G of the CompaIJy urn t':10 Scato. b. his own r-cqu 08 t. c. COi":'l;·.littin{~ ac b i.o nu o.....~ s;G[;i·Guo..o hCI,:;s.lij.1[. ello COi"llP~).'\Y-. d. COE':!littil12, action8 0:-.' o,ttitt.'..do il'. COlyc:-L'2.o.iction 'J'lith tho interest 0/ t~o st~~o. 'MIl ~/ 10 31G 13 c. :ph~lsj-cDJ.ly or morrc alJ~~ C:isacd.lit ~r COlI sing him to bo u nabl,o 'GO perZOli'i1 his (lut~r. f. ry ',.0 '-, a d oc oas e , ir'),caj?abili-c y d. 01 auI,t. h. not i;',lplomonting ",;11e pr-ov.i s Lo no of t~10 Company's articlcs of 8.G8ociation. (4) The J.iOl'lis8,31 clue to the r-easons as referrecl to in par8.G:;.~aph (3) let (;0"-"8 c a:tlC.... c1, il thoy are violations against tho cri rrrina'l, cod o sheJ.l co nsbitub o a d i.aho nous..~a'lJlo dismissal (5) Deforo the clisi:lis8oJ. l~.;'~O to the r-cr.oo na 8.:J referred to in pa raC;"-"2.pll (J) lottors o o.j"t.::.. d is co rdu c cod, the role,tivo member of tb,o Iioru-d 0:1:' .iJ il~CC·CO:~';J, cihnll be (.iVeil. the opportu ni.ty -Go clef on,:;. himself in ','T.ci 'cLJ{~ QC:C:rosso('L '\;O 'C:,lO I'Iinist er, -Co be co rxlu c t cd within buc 'OI':i.. OO.. of 1 (ono) month after tho rel2, tivo Fl0j',1:JOJ:- of tho ])0:::,:.'(1 o:i.' :Jiroccor:-J ilo.n been notLfi.cd b~r tho lIilliiJ"C02 0:.1 sc..ic..1 cli::::Eliosnl pLan, (6) As 1011[; e,s the mo.'c·l; or an reI eri""ol-:' to Ln .:.>2.-.."'ngraph (5) ha.s j,1O·~ yot bo on c:'ocic:;,ec1 'c,:'le Eil'd.~J'Cel' c ari ijOi"I.~!orCJ.rily eusp e rrl tI-:.e :1.'8-' LatLve E10iTl ~)e:r of the :802).'0.. of JL..'cci~o:"fJ. If within t:10 por-Lod of 2 (t~,vo) morrbha at'l;C~~~ tho disi·i~is80.2.. o? ·G:~e r e.Lat.Lve monbor of t.~lO :;]o8.J."Cl of Dj.l"'Oc"i;o:i."G bas od 0:: ";;110 nr-ovas Lo n of l)ara,r:ra;)~l (4), no d o cd.a.i on has bco n o btaf.ned on 'eilc clis:nisseJ. of s~ic1-' lllCii1'bor 02 'c1.l0 JJo2..rCl of Dircctol"S, ~:w.ic~ ou npcns l o n shaLl, 'boCO,,!O rul1 ['.:.::xJ.. void an:1 'ello rel2..tivo ill OE1Uc::.' of 'G~lC Board of Diroc I· '.~' • 1 1 • • • • n f .. L-. .,'corD can 1i,l1:1C'U 1[1."[; o...~r :i.... e8,S:JlliTIC .LnS .i..i o o 'C, O:;~cOP 'G 1:£ or G~LO ("0 cir:lio:"l on s2J..Q dis:rlli~WL0., e. COU:i."'C j~'..c"1.0:1oITli is rcquiroo, anI tllio j:'lo..i;tel~ ahou.Ld be ilO'c:LZioc1 to til.O pcr-so n co nccr-ned , A:cticlc. 1 ij ( 1) The m0:;ll)Ol';J of tilO Doa~,.'("':. of Dd r ccto r-s o11oJ.1 be Indonesian Na tion.oJ.G. (2) ~rho mor.l~)Ol'G 01 t,:.10 J~02..i.'\:' of ~jircc'eor;-J :::;~18~1 '",)0 app o i rrt cd based on t 1:,.0 ::,"o(ll"..ironcnt::-) 0::: e2,~)Qbi1i ty o.1X"'<. cxpcr-c.i.s e in "cll0 fj.eld of COi:lpo.n:r manar.cr.io rrl., ho.viYlC the 1:1101,'/10\..1(;:0 ani c xpcr-Loncc rcClu:i.~... O(:~ to i~lan~.Gc a COjj'l-J:'lo;..1Y o:,10:"'o,'i;il1(; :i.n tho field of fo:;.~es­ try, havi:1{~ [,00c1 cho.J:'['.cec:c f:."..;:rl mo r-ul, o.a: posDescinc o t hcr- r o • I' I " ,'" 11 ., ... qlJ J.J~e:\'le:.l'GC ·GO Gv.p.9or'G G.l.lO Sll'oC,re:::;s 0:': "(j,l10 company rllana[~Ou. D~r him. (3) '1\110 DOo;~'l~ of Dirocco:;,.':] :-;,;1011 :fully I':OVO cO it::.; d od Lc at Lo n ard ca,)..Jabj.lit:~r 'co t:1.ccC',8:::~Jf ~";)lil~o..l;ioJ:lfJ r.jx"t 'C~lO achi.ovom crrt of tho COH,,)0,: l:r l S 0 -0 j octi\i 0::.;. !~:"eicl() 19 (1) .a~lil0J:1{', t~lC ilOillbors O:L ·C'lO loo.ru. o~;:' Di::oc:.:O:l:'S tho:co :-118J.l 'bo EO f o.nlily ::.~oltl:c:i.on up to tho tllil""<l l~OC:i.·c;o ~)o"cl!. en vcrtic[i,..:. line of (tGiJCOEt and on horizoll'lial line L.1clr:C.i:::~: in 1[;,1,1':'8 urJJ.0:J8 110nll~."ct«L ~JY the ProiJiuol1G. If oJ:'-I;c~:' t;,lO n,ppo ir.tiilont,chey UOCCillO l'ol2,-l;cQ in tt..8 f orbic:;,(~on deGroo, tlle:"l D. p e rm.ic L!. '.-r.;.~il;i:i.1C f:;:'Ol:l t~10 ?rcsiUOjlt sl'l;iLl bo rcqui:L'G0. i'or eOj:rl.iin.lr.~lce Ll offico. (2) Tho •••••• PVi/11:/10 3"169 (2) '.rho li1CJ:1:Jo:..'s of tho :Doc,:"""'Il of Direc-Gol':J s:lo,ll nob be al.Lowed "tiO havo c:.iJ.'oc'i; 01'" inC.irec'c )O:"'SOl""J...'1l Lnt or-cs t in ano the'r azsoci('l. tiO:i1!oiJ:GOr.priso opo:-co.-cil:1 c:;/aiming 2-'[; Goekil:1-tZ profits. (3) Tho mOE1~)OrD of the Board of Direc-Gol"'o shall not bo justified to con~lrTontly hold 81~thor office as roferrod to nerouluer: 2.. '1'110 Pror..dcloIT[; Di:-..... cccor- or Diroctor 2.t ana thor state owned u:'Il Ol"C ['l': ir€ bocl~r, or anothez- pr-i,VC-C 0 o:i.T~Grprise or a11Oell'01'" f'unctLo n rolnt eel to 'ell0 managomout of tho Company , b• .11.110'[;:102:' s t ru ctr.. l'o.l or fv.:nc·i:iioi1.?~ L.l·t:lO A0ency/Institution of t~lG Contr8l GOvcl"'::.r,lo:;:rC or I~ec,io:i.1cl Adr,1i:'Jistl"'ation. c. Ot.~lO:i.' l'nnctiol'U:l 1)~.n0<l on the pl'evuilil1g loc,islativo rCGul.§ tiol'J-S• ./U'cicle 20 (1) E2.,ch U:lLit o.s ref ol~rcl:' 'co in lb."'-cic].o G P2.:"n.(')..'nph (:::) sho.ll be ElDJ1c.'1C~Olj. by a unit n2.:rJ8.C8r cOl1.'JiztL1(; 01' 01"'.0 Unit Hoarl o;..xl 0110 DOllU'CY Und,t IIcccl 1 l'ecpee'c:tvol~T E'.j.J)oin:co(~. by the r.Tinister at '1;}10 ~ll"'o.DOS[lj. of tho Pr-cs i.d c nt Diroe'co:::~ (2) Irho Ullie ~jead. shall "00 reGPOllSible ·co -ehe Eom"'C- of Diroc-co:::'G an:!. tllO c.... cpuuy Unit !Ioac.... 8~1.2J.l be l"o::,:p0i.1.Si 'ole to tho Unit II0 2.d • Seve rich P 2.1"'·c l ..rticlo 21 1(1) A.t the lc:cost 3 (three) montha 00i'oro tho offectivone:JG of tho fiGcf.1J. ~iom"'~ tho ;jO~.l.:;.'<l 0): Dd.r-ocbo ro uhrJ.l suhDit c woa-k pLan alL:' 0. Oompany ' G "wudc::et Covel'il1[~ tl:e Lnvcotmcrrb r'..n:l ox » ploication wc~(!,ots to t~l.e ~Ilinisto:i." i'or J:'~;cifico.tion bCGoc1 on tho joint oVr' luo:Gioi.l b~r tllO Hi '.us·cer c.nl tho Hinister of Fi 11<:'.11.eo. (2) E:;~eo.yc i.~· the r.Uni iJ -c e~: :L' 0 l,"{l~'.l'll. s ;lic ()~) j c c cio 11. in \"lrit i:!.1C or ro jocts tJ.10 ~~cti v:; cie;:; i::'~jo?:"i;eC: in t;~c wo.rlc p Lr.n E'.nl in the COE1.~)['l,n~.r' 8 1Juclr,o'~ 00:::'0:,:'(; o::.'\.~or·h~[. t:1.e now fiscDl yor::..... , ·~l1011 fJcj.a b.tdL~ot ~Jl!.oJ.l fully rOjolcin ci'i' cct:i.v : ~ (3) ~;ho WO~: :.,18.i'l 8.nl/OJ: ['J..ll':.itiol1,..."'J. h:u::(,cC 01" l..uclc;et ::-JtlCJ.;d;·le::...:~ in SOl~'ljOll in tho rolctivo 2:i.. o crd, ~TC['J.'" O:loJ-J. i'i:cst be ol1bT!littcQ -GO th.o ::iJl..i.sljoJ:' acc.o r'd.i rv. to -:;:10 prOCOl~I."":""'O 2,:.'(1 timo s·Gi:)L:.J.[1.tocl by tho TIi:i.D..sto:C' :i:'Oi... his rC'.tificr','Gion ",:)['.30(:" on uhc join~ ovnl.urrt i.o n b~r 'VlO 11i::'1.i.s'Gcr o.rtl t!.10 LiinicGol" 01 l"inD.:L1~0~ (4) If vlithill 'bho pcr-Lod of 3 (throo) L~Oll-'c).18 ;:,,l'tor f;u1:nitti:1.C the 3~J:)licr\;cioll for tho r.porovoJ. as j,"'oJ".'ol"'rccl to in !?::')..... Q[:;r<.'.;l.i.l (3) 1 tlle CiniG'cw: clocS DC),\; ·C.ivo f'.,n~r ob j oot Lon in writi:o£,:~ tho <:.10r:.4 li',Q)".t OT. enic1 wort: plC::'l c.ncl b.....clCot :J:~['] l DO consi.d or-od ['.:J ~!.-l r o OJ~. ~T l'L.Li:l.' i cel. (5) Tho ••••••• 3170 (5) 'rllc COi1r~)C1.l1.;)r'0 worJc p J.au :,xii.jor lJL'..dc,.c C Ql;:8[1~~r ratifieQ chal.I co nc t i.-c~'. tea worlc '0;:-.::3i 8 [l,ixl snv.l 1)0COIolG ';;110 t ask s of the B02..i,\C:' 01 Directors to ,~18~ 'form ac t.ivi 'cies as inserted therein. ( ,) Article 22 !.J.l fin-8..l1cir'1-{?; in the lrc1i,l e 'Nor k of iuplei,lGnting the t asks of tho I:'"1GCI'D2.1 SU)8rviso:!.'y Urrit , Su~)ervisory Board ani the ex pe:"'cs, shall be c:1a:;:y;ecl to tl'-le Cornpariy c,l"il. shall obviously be r.J...'..dCC'G-GO.L L1. the Con.'.)2,:;'1Y' G 1lldr;et. The Compr.ny s:1.all be p ro h.l, biteQ to fL1C.'-lce the e xp erd itUl"OD corxhi c c8e:" 1JJ tile j~inis'c~:~r/N::.,ency p:"~oLlotil1c ani Sl.:lpOrvifJir.[; tIle COF1.~K',:lY in tIle :f:;':':?';,.l(ri'lO:;'~J.~: of pro.uo ci:1G 2.:a:l supe:::-vioinc the CO)JlDC:)1.~;· :Cie:,hth Pc.J.:t The Company':-J li'iscal :Cccur ::J!laJ.l be t~'le cul.Lcrxl er- year, unless othcl'wise :;,:covic..eu. b~r '(;lle !~Lnsterll Articlo 2~, (1) Any chang c, both c:::Ll;3eG. -;Jy Q tre;:l,rJactiOl1. ard by evarrt a Ln the COi:1'!2..n~T 2J'f0 c';';iiy-; 'C.::'C aas e t a, cJ.e~)tfJ, ca~?i'lJal, costs anl reve:l'n'3~J uh2,,'.1 be aCGOl',:;'1"Ced on the ~)2,8:i.8 of one Li.abl, e account inc; . i.l]8 -;,; Oill. (2) The ac countLng s~rst 01,1 :-:'.8 }:,el'c:l.:'rod. to in l)a:~"aCl"aph (1) alial.I bo cm'lpo:J6Cl ani imJ.Jlo;':101T(;ed 0~r tho :::'oO)."cl oJ::' Di::cGctors :\.:'.1 o.xlcr th.C;l; it vzi.Ll, ru n 9:":·v,)o:.,,,"lZl baaed on 'ello Lnt or-nal, co nt r'o L prLl c i.pLen, c:-J)ccicl.1J 'Gllo s8i.)cration ocr function of' a,clmilllst:"a ti 0l1.~ r-ccordLng 8-GO:':'C.l,-,C 2xli Sl..l-~) 8y.'vis~.011.~ (3) In the fl'Qi;!C\','ork o.i:' ~'.(~:i.tirJG, the :;"'il"l(J;,.lCia.l e,rn Develo:;;>mc::IG Supe:.."vico:C':r :802":'~(~-;' :::.'12.11 oval.uat o t:1C ~r;;i.b)lllatod Gystel~1. au rc fe:~l'ocl. -[;0 in par2.(),'2,)~.l (2) n:n if :,lCCOfJS2.ry [;11811 eive c"ci:;,"oc civcf:J ~:'J(;, reCOlj~1l'3:ri',<-l'c5 0:'lS f::>:-c '(;ho :i,j;i rcOVC:·1Cil.'G. 3'-t:!ervision .Articlo 25 (1) Tho r:iLJ.r:;·l;O:;" eh.a.IL c(.'j-UUC'C General st...po:cv:Lsion on t:1.0 CO:',llJ8,l~~rls O~) 01' o.c:Lo 11.9. At -I:;:1e COE1PG.:'1.Y a SU,:?urviso:;."y Board s!l<.1.-l1 be 8otablisll0d, r espoa s i 'blo'co L'l ini S 'G e:c. ( 3) ( ~,) Tho 3n~!Gr-Ij'isory 30 a:."C :J~12J1 h~WG ';';::'8 to,r;~( to im.:J18i::enti CLl~~C:;'''­ vis:i.oj,;. 011 the COlll.'2.11~r::J i'''10,j,v.tGe~lG:':1-c, incll'..d.ir)[; tho exocut i on of t.:le COj,l~o':'1'f's '.vo]:·l~ pla~.l [l.~ 011C~CC;; ~ 9:11.0 Sl"...:,1cJ.'vir-:.>vry ;)02XC 8;1[1~J. amp.Louc nt its ·~C.skS9 comp occnco co,:::d J:'O;:;)Ol:.;:31 1)ili"G;)- in c.CGo:;.,o.al'lco vr.i.th t.:.10 Jll'e7~ili:nc; jll'OV::' f.3 5.0;1':: l; 0 ·C.~lO ComP Cl.j ....~r . c:l'r.1. si1.<:'>,ll jj l,,!J. 0:,1 0:1C 'C ::,0 6, o~',i (;:i. (JUS r:.n1 0,i:c"'cc'civo3 of 'Gho ~.aniDtorl' l.;,l~'(;iclo 26 • D ••• (':;0 to cont Lra.i od) under plan to thiJ Dircc Article ~6 The S'-1.pervisory Bear-d ahal.L in implementic.~ its tasks be oblic;atio,n : a. to aubmd t opinions e':'l~l r-cc ommendat i.one to )liho fIinistor tlU'oL:l.c~h tho Director Genoral with z-onpec t to t ho work plan desicn and Corapany! e budgo t as we11 as tho amendment s/::.ddi tiona thoroof E'.nd oa hcz' roports fI'om thG Board of Dil"~ctors. b. to supcrvaso t ho implo:n·..:ntation of tho Ccnpany" s work 8:LJ.d buclGot and to snbr:1,i t t ho rcsLQt of it~ oval.uana cn Iilini::::t ur \-1ith c op i ca t o tho Board of Directors and tho tor Gonoral ; c. to mon.i bor tho COi·J1pa.,lY·S ac t Lv i t i oe and in CDStJ the Company shows an Lnd i.c a't o'r of backward.ness to fOl"tlwiith report to tho r-linir:.:tor with c cpd oc to tho Dir3ctor G:):~()rc;l ac c ompanx cd with tho r oc ommondat.Lona OJ:). tho Lmpr-ovcnorrt O~(..!.DG to bo t akan, d. to submit opinio):;,o aLe: r-ae onmondat t on... r; t (l 'i~ 110 Ilin:Lst Or' with c Opi0:J to tI,.o Diroc~O'l' Gone r al. a'1G. tho }JC1c"r& of Ddr-oc t ors on any ot har mat t cr-e co..1.sid::J:::'od u.rGent for t ho Company" S manago F, :1:i.1t ; e. }~ 0 IJ(J:i.~fo:r.m 0 thor :,;v.iJOI'vis ory t.askc st i;ntL:.:t :;'1 by tho I'.liniDt or; f. to pori odically Di.,1..biai·[j r:j ports to tho EL-lif.'j-G or mid t ho l'.:ii:c...is t'Jr of F:;.nan.co (qi.1.2.:i.'tc)l'ly and Y'Jcrly) ~'l.llc.. c t ..my time l"oq'-1.irud on tll~ Company ' s c.r...lvJlo,.iJ~i;cnt and t hc rosL.~lt of tho tE.sl:: im-·' p'Loracnt at Lcn 0:1: the: Si.,'..lJ'jrvisory Board. Articlo 27 In imploi","icnting the: :Jv.p.::rvioory tasks 8,8 r0f~1'r';G. to ir.. Articlo 25, tho Suporvisory Beard. shall bo undu r cblice.tion to obc or-vc a. tho CuiO.lJlinos ~10. (~j.).'~JC tiV08 of th~; r.:i::.. ~.f..);;Jr and to ul\"luys oboor-vo bho Cor;1~lanyt 8 o::ficiullCy ; b. thu DrOV~S10~G in t~0 tho ~rC1vi8ions of th, Ccr!l,Pony' s ostablif)~l:;:;:;.at rogulation (\~. 'Y"'l'll' >1 17 1(\.'1'1' ,:"1 {:)'J" V:· r-otul.at i.ono.1....... oJ c... "V."v - .. . ..." ...> ::J, and C ·r', .. "'0')"'''' t1' 0 C'" ·\"1" ('/'1')' rV1' sory .... n~h -"0',..··1 I , ('10"'ln~'I)yf '"• U.f..LU 0 l~·...La n I J ,I.I 0-.0<..1": .. lJ.:....:......l~ J...L ..... .1J v.I· v l:.;;.... l·••• t::) ma..12,corial task c O:·l~;t·:i. t L'.t ing th..:: t aclc u..:'.O. 1 (:.:,bili ty of tho Boprd 01 Diroctorc. Art LoLo 28••• U/17/10 3186 Articlo 28 In i[~91:)J;1,Jiltine its tCGll:s and ob.l Lga t Lons , t hc Supervisory Board shall h2.VO the follovlillC c ompo t cnc o : a. to inspoct tho b co ke, corrospondonco and o t ho.r doc umont s , {iO iLSp:JCt tho cash co!::.c"'itiicn (for tho purpoac of vorificatiol~.) and to audit tho 'JOiil.p2':;1J-d s assets; b. to Ol 'li(lI' t ho Y~:t'll:s. 1Jnilc:"~.llgs and officos LLG'Jd by -(;ll~ Company; c. to r;:,qL:1J)st ClLlCidt'.G:i.O':'lS from t ho C08pOY.y's manag omonf on G"'.l Jila-[iGe:L':"; LnvoLvLng 00i"lJ.::J2ny's managomcn=:.: ; d. to l'(;qLlost the BOD:!:".:'.. of Directors and/o::.." oth.:-r offici<:.ls nitll tho kllO'Nl ·] c:"g o of t ho DOD.rd of Directors to at t cnd tho Supc::':'ViflQ ry Board's mQQti:r.l~ :u , o, to 8~(;(Gd th'J Dou)':'. of Ddr ec t ors ' mco t i.n., ,-::l(l~o [.LTJ o~)inir:n on~h.' :-,D-(;iJ or-a QiGC tl~G(Jd , f. ot h.ir nr;:ttol's COJ.lSic.'J:L·~.H3.. neccssary 8G a:~r:;,:;:leocl in the ooJ1:1J <J.:1.y , s I)st~blisl').mont rQ(;nlatior..• .Articlo 29 (1) T:iD Su·1DI'visory DOc~.:i.'d shall hole. 8. r,l,:wti:lC j:'...i..ninally onc o OVUl"y 3 ()~hro(J) monuue and. at any tii',10 if l"'Jquircd" (2) In. t ho ill'Jotin:'S 8S rJfoI'l'Gd to i~1. parc.~Gr~'ph (-!) t:'..:~'.~ r~ll'-'" t cd to tho c or,lp":·:;''1;f ~ pursuant t 0 t ho ma.tn tasks y riC~1tG ..1:i.'10. its o'uliCc'.tiollS shall 1);) d i scuaaod ~ i~'}?'j'.::: ;)'t's l' '..i:ilC 'G]. cns , (3) Tho d ec Le i on of tIl<) SUIJ\lrvisol'~r Doarl.i.' S iiWGGins 81,,·::.';' 1.;1) i:1:J.do on ';;:l'J basis of c onaul t a t i.one to r-cuc h en 2c;ro(H!l(Jnl;. fo f8.cili·~ato tho SUI:':Jrvic0ry BOflrc."1..; o t2s1~ ii:lf\10Elo:atatioy!, bho !unistoI' c an appoa.nt a Sc r:; l' o t <..: :::' y on th..: ac c ou.i ; of t ho C,Ji!1'p811~r. Ai.'ticl'J 31 (1) Tho SUl-:'urvisory BOf.}:'C:' (L;.; :"cL~r:c,Jd to in 1'.1'C2.cJ.o ~j c1-~:J.l.l CO:cl sist of o.Icrccnt s of fL'\2'lctiol18.r:"JS 01 '~11.J I.ii:Ll~L8try cd FortJst::·y, Uinistry of Fin2nCG s ~nd other Kinj.stri03/A~01~i3D of ~hich tJ::d.:i." cc t i.vitLo c C.:':"J :.:':>L:;.tJcl to t ho CO:'~P2':'./ 01\ cunc r cffic:ic.;.ls prop oc ud by tIl-j I:~j..n5.st~!:;:, by obao rv i.n..g 'Gl"':: CCl':8i.J.0J:'<'ltj.or:.. of t110 Ei:ais t or of }.i'i.1irtnc.:-J. (2) On.] of t ho membur-c c f t11::1 ;.:lupJrvisoroy JJ .: :,:.'r~ 811:::;11 b':J <':)~:·cint~· eel as Che,ira2n of aa.id D car-d, Ar t acl.o 32 (1) Tho Ll,H:11J'JI'S of t h. 0i1p',;1'viso:cy Beard' :311c.3.1 :J'J 8.ppoi1l.)coc:. frO~jl t he l·~Dn.LJOVi()r hav i::1.(~ o.ocl:i. ca t i on , c 2p::,bi} i 'i;y v:1l1 c,;) il iJcy to :J:.CUC~lG'3 thJ r~hdc'Gl).::'v:::: policy on t hc pr-crio t i.on and Stll)(H'v:tsion of t; ho Comp -.yny. ( ,.,,, A l"'~ ·"tc.., .,u,.L:}C(-. • ••• 0 •• F11/17/10 ~)18? (2) A.lx"'.l'"t from t ho co:.·~-:'itions FiJ rOi\::rrc::l to in par'agr-aph (1), the j,lJriibor8 of tho 8L:'lYJ:~'vis')r~r J3cs.:."("l. s:l3.11 net b o aut hor-Laod to hav o .irrb cr-oc b in c ont r-add c t i on vzit h or harmful to tho CO]] pru.y ' s Lrrt e r-eat n, Articlo 33 The me.nbar-s of the ;3Uf'8Tvisory Board S11211 be m'irri.maLl.y (uwo ) p3l"SOnS and l;1D.xii:10,11y 5 (five) DcrSO:i.13 consistinG Chai r man and Boa.rd ' s membe r-s, 2 of (2) T~.le Chair-;,na!l of the SapsTvisory D021"c1 C oor-d i.na t Lng t ha G:11J8.:r. v:i.:3o!'y Boa~'dv S mernber e shall be responsible for the suporvf, ai.on iml)lementC'/cio:.:. to the I:Iinister end/o:: th:l I~i:;:li8t:n.'" of Pi.nenc e. Article 34 (1) Tho fLUlctional p"~:·:'io(l 01 the Cha i rmcn <:;,nC. t~18 memb er-a of the 8Ul)~n'vi80ry BO.::',l'll c:~<Jll be 3 (three) ye arc ; ( 2) The El0i'JOel"s of tJ.:,3 0u)')X'visory Board ["~fter t ho t e'rrri.ne.t Lon of bis/helr fLti.·lc'tiorlc,l period 3S refcl":':'ocl to in P21'BCrt'lph (1), c an b o :::'cappoitJ.toc':. by c on s t arrtLy ob s or'v i.ng tho provision as rof~~rod to in Article 35 paraGraph (2). Art LcLo 35 ( ·1) s:'ho appoarrtmerrt :'rJ.c~ disr,lissa.l of the j,l:}ioiocJ:i:'s of tho ~i.lp8rvis.Q r~r BoZt:cC. sh8.11 be c onc.uc t or; by th8 1':i:''J:Jir.~ont at tho pr-op oaal, 01 t ho I.Iinistor e:;?tor hJari.Llg the c onu i.dcz..a t i on of tho Iii,n ... istol" of Pi.ncnc c, ( 2) If~l1o FJ.inistGl' is of tho opinion th2.t t:l0 nomb or-c or one of tho mombarn of t ho SL:'~'J:r.vi~:;ory :80.31"0. a1'cor hcLdi.ng thci:r/his fUllctiol1s/fmlctj.o~,~ for 80:~~O po r-i.od 8.PlJ.:~cn·~1~t Ca..'111ot or in c a.pabLc to perfO1'n t :1'd.r/his tasks pro!, JI'l~1 ~ tho rd.:l.:J:.:.is ten' can pro!")oslJ their/his llisi·l,issal to t he ::l'oGiG.(:l1t. Article 36 If conai.d orod noc oucury t ho ;3/.,11)(,::"visor:" DOi.;l'l:. i:n impl·)j'H:mting its tasks can obtain th':J as s i.at anc o cd an oxpo r t , tl' t :i.e1 0 37 Tho no.nb or-s of tho Su)ol'viso:i:'y BOElx'u ahn.l.L 11(;G ~)O jL'.ctifiocl to SiIJ1Ll1to.1100Llsly have othor j?LJ..D.ctien at a lJIoivc~·tc LUldort?!r..i.:i1C body whi.c h c an CE'.LlS8 C ontrc.cJ.ict ~.VO) int Ol'CJst 8 d i.ro c ti~r or in.J,il'oc-l:ily with t ho CCi111J2-ny's intoI':"J3)CO • .Ar t i.cLo .38 (1) Tho Company" G il,:l;3rno.l 8u~Jorvi:Jion shall 'b~) c onduc t cd by an Incol'nal ~~Ll.purvicol":,.r Unit. ( 2) ~ho I:L1G<Jrlls.l ~l'.l)~::;:'v5 ::;ory Uni t 8~lalJ. b o iX.l.:a:J.C-:c1 by a 1~Qa6. who is :;:'u::>ponsiblo to \:;110 President Dir()c'lJo:c. .Articlo 39 ••• H~/17/10 7,/138 (1) ( 2) Artic:i.o 39 T:,lO I:'1torna'L SLll)O:"'''/is Ol'1y U11it 8118;11 have t110 t aak to aus.i ;:-~t tho Pr-e s i.dorrt DirGc'cor in c onduc t i.ng al'l ovul.uat i.on on tho L12.J.'}£..3er,13nt control GycG'3m and tho im'plol~':')ntation t~.crGof in th8 00r:l1)vny and to provLd e r-ec ommcnda t a cns for tho :!..r..1~:Y.'OV~..: non t t her-o 0 f. The Bcar-d of Diroct O!':J shall utilize t:l') opinion a::'~Q roc cnmon li.o:;ion of th·J Ilj.l;or...ial. Suporvisory Ur.i.it [,,0 l:latorial fox' C01:-· ... clue l; i:1Z a :sooel 0.:.1(-;' IiabL 0 Company ' s mco;.laeo~ilon t Lmpr-ovumont 0 Articlo 40 In L,.lplu,.~'JrLi;inG its 'c:J8l~::s tho Intornnl ;)L:.Dorvicor~r Unit aha'l.L bo L':".l.C~CI' obli{S8 t i.cn t 0 j:~~~intuin tbo smoct n.icc o 01 tho tas}:: Lm plmilont,::.';;ion of t ho O·~~l.'J:" 0~'.'::2nizationaJ. ~L'.H;s j.n the: COn~)2.:ny in ace o.:..~ci..C..!.lC0 wi.t h ';';~1) ~.=:' l,r) ;31)':)C t i V'] )G<:'..s};:s aIlC:' 1",J8p ons i.b ilitioG. Art icl 0 41 The Inl;orJ.121 SLl.9ol'vi;:;or~r lJnit 1l.12y obbro.n t;~w aosistanco of an eX9E.r:.~t. Articlo 42 Tho l]xocllciv:J of t lio Intornal 3uporvisol"y Uni b ahal.L have an" ' Z '/ f' ~ . I' • "arl.CJqL'..,'1~O 8~1.Cl 0:''' or-o e aa on c o iiWCG c no roou~ro:~o:n'C8 C:l':'j CJJ1 Lrrt ornul, Emporvioor, objective with hi.gh G.oclic3tion~ L.ec.uc;;,iJiN'l .Article 43 Th'J E~..:<.'l,cl cf tho Irit o::"~~:'.8.1 Su~orvi8ory Uni t sh2.11 b 0 appo i.nb :;(~ al~.el dis@~.000Q by tho Dc~~~ 01 Diructors. Articlo 44 (1) ThJ IIr)8.d of tho rir~c:..!.'lci8.1 ana. Dov~lol!iT.;.·,t Sll[io1"viso:::·;;r j30c~~c'd. i 3118.11 o onduc t £".i:l <'ccctl.:':ltinG al..:.clit on t:l~ tJOll.l1Jt::lYo S annuaf, ('h l1[UC La'L r-o por-b , (2) Tho J.i.'..c""it as r'.;:t·!1'!:'0C. to in l)ar3S:'2~)11 (1) ccn al e o '00 CO!lc1.u.c.t 06.. by:;:. 1?v.bJ.ic .:~CCOLi':ltG,nt wic h the: pr ov i:::;j.(\:~ th2..t th') 2.v.C.it rcoLllti;hc.~·~of fJ:L~ll ;JJ t.::f'pl'ovod by tho Er.:s,G. of Fil1o.l:cic,l ar.d DovoLopncrrt 011.y.:rvi30:~·0r ~:3('a:L1. (3) In ij~QunD~tin~ t~o prpvioion 88 rc~~r~0~ to in p2recrcph (1) an oIvcatiu';:12.1 <::i.;.d.it C['.11 aLco b o c onInct od ~o t ho Cl)l~~.9:11~r. Art:"clo 45 1:'h.J r"J:.;~ll t of t ho ;3~:}),J:;,"vis()ry task audit 0.3 rGl:)l~:::'cel to in .Ar ticlo ~2s ahal.L £:1:-50 b c cL~or:..ic t ad to t ho Lil1.; ~.:l';';;r~ l\'1inistor of Fi!l::JnCO~ :002.:;:0(";. of Di~'oc:;o:"'G and t ho Su.p81'vL-J01"Y :D08,:"c1. Ar t Lcl,o 4G ,-iithou-G p~.'ujwljco 'co:;lw :Jtl.i:-"oI'visiol1 c ompot cnc o 8,8 r0.fuJ:'roc.1 to in th'] :;:.."ciclcs of t~.liD ·h,:,:.'G y oac h OrC;2.~i2<:;';icn'::1 Unic Boo,C.. in t ho GOjjl~J<:,,"lY shall bo j.'··)Gl!oJ:1siblCi fo::.~ iJt3.'iet GiAlJO!,·.,rision w:" t lri.n lis t acka, ~\ ::::1 ~~h ••••• TOllth ?art "Pcrsonnol Article 47 To smcot hcn tho Company" s ob j ec t i.vo s , it is noc caoai-y cX'r!:::c'J a woz-k so.fc.d;y and tr3l1qaility in the f]ompany b3T a r.. ir appruc i at Lon to 811 cmpl.oyo cs and a wor-k s.pirit tho COi'11Jany. tc ci\'ins J.!1. (2) Th lJ ] -...'··...,l s t at.ue ''''''lcJ..~o'·al C01"DO"";.1.; ,..,.~ r~~111~'s r'J.' ~·"lJ.· ..... .-~l .... •·... j-.Ju \Je-L -~? .L .... ,v. ~l 1.•.L ..=> I", .., v.l.;., (..40.1 , ~ )l~ i..J..:.JQ,; .--,~ suL:,rio3~ pcnci.ono and al.Lowa...nc e s 1m2 tho Company t a OiJlplC';y:::cs ~!?::~11 be rogLl18tC(:~ DOGud on t11':1 provClilh~G lOGisletivo rOCdl~ 'G a.one, (3) O~)!ur L:lComo of ;;l'~~ ~;Oi:.19Elny's omp'l oyo ao ::;1')['.11 bo 8c~);}rC:'Gcly l'O(:;Ll~.J)c(Jc.l by 'iilu :;';'o:.:::·:'C. 0; iJiroctol's ~:.f-l;()J..· h::lving appr-ovnl, fro~ tho Minister. A::."ticla 48 The Do~::.'(l of Di::."'uc'cor8 Gha~ l £'.9Point 3.Le. c'lis1115.8r:.> tho COT1.i.J0r.i.~:' s op:~pl(J~Te()s/YlOrk8:rs b23("Q. on t ha pr'cva i Lxn.; locislativ:.:: I'UCU.1D:liions. Ai."ticlu 49 (1) A .rn::-:siol1 ahalL \yj ) )~~'(I<:.i..'::'Qd to t ho r;O;:l~K~.:::'~.T~ s 0lO1'plo:,/(Jc~'J b:3fJOc'l. on t 110 1!l'OVQilL'lC; :..' 's C-: 1.'.1a t i O~:lS for COJ·l.c,a~·~~ ~ 8 ~i':1~ ::;j'U ~)3. (2) DQsiclos tho pc;.!.·.~~:i.0~'-s o;;h:.!:" Oll:" 8gC ::llC'\!~<~..ccc C811 b o prov id ori to t ho Company ' fJ :JD.~)loy:.:~s to b o 1'0~L'.J.c.:;::1 by th(.; Do:::~rc of j)i:t'octors a:n·,.\I' >:JVL1G appr-ova.l froiil i.;~.10 Einisi.;o ...."• .Glov':)~1.th tart Eil1pl o;;rcl ')8 I ~bG.pc~ sit;il i i.;y [:11(:' CJ.t~j.i',l for I~'lCi.Gx:··::.l.i..c:J..ci.on ~\l' ~ LcLo 50 (1) .1\11 CO:!1Pill'l;)" s c@~J.o~:rrj03/.;;r.n'SOlll'l()1 ~ ~lcl"1.t~.l::,':; L::Ji..!-IDOrf; of t;10 DOt:::,c~ of Dj.l... ·':!CtOI,8 ~L;l tll~~i::.' fl.U1C tiCJ~:8 '::.0 ::JL~CJ:"lSl rio t s.3siC~~:"'Jcl \d.Gh t ho kO·'lpilL'::; O:~ j'.lO.i.:J~Ts valunblJ d oc c..n:":l:.t:J p SL:.k·ljT cooC:s, \'111.0 t.u:-: to ill,;~~",'l .~.'J ~i0::'1.S or c'!."'.:j to ~l(eJ.j.=J:1.CO 01 obliG~ bi cnu .:-.:. ..1 tasks <::.c:J2.::";horl to t;hOL1~ c.':.i~l8'Gl:' or ir~G.iJ.'·~lC~ly have (~::1LUY1~:' a loss to "t'1: ~ oripr 11:;:' ~ sl-..sll b c 0!Jlj<::aG0c:, t o })2Y in~ Q~0nification for 8~ch c lOGE. (2) '.i'hC! ~}l~ovj.sioLS Oil L,:,~cT'1i-li£'icc,tiOLi a~}lJliQ(l:~o t no civil o or van t c ul1::Ql be f~u~ :r o.9plic.:,bl:: to 1.;110 ']O;".i.JD.:a~r~s 1J:::;ployJ0s. ( 3) j~11 'Jcrl1pc.:lY~ e Cll'r;] O~.-O:J 8.ssie;r.LQcl '.'ti tIl t:;1':) 'tr'.uk of :::<~v~.nG, 1Joyn:'h:..t uno.. dol:;.v:,;:,,'y of noncy ar..d Conp2:i.::.:;f G valae..)lo d oc u • L1~~1t;~] (~,J.lc.l f]Oj!11:01\~11 0 8Ll~rJJ.~: Goods stoI'UG.. ill '~~l':; ErCOr'Gf:OL1S3 01' f:': ..L:c.i.21 stor''': l)~.·":C0 ::HJ.d. rlYJrul;}r LlG(:lG f'.)r s,.~.id pUI'p080, shcll 1YJ l·)S.pOl:oiblQ :20::" t;ll~J ~ssk ir!lpl~)i'.3:;:..~a'i.;:i Ol: th''):::'ClOf to tho S;i; c,,;~:J Fj.!.1.r.:l"lC i a:!. J.~~::'.5 ·~ D o.ar d, 1 "1'" omnl.ov vie ~, .. ..", ...... ~,-~.-.i~ to 1"1 r"'':'~'r-'~.T' .....~, (3) "',.:,V\al"1 ·..'10';-J belo.J> 11.1.-. oJ .J.....,~.J .1.,; ~ ...... .,, . .£ •• l,....l.... ~ •• '"' .. •••• \ .,. Oh J J' :.,-,'., " to C<·ll),,·,·j:- ""';1 acc oun t ao i.J J.'tv :::-, :';1" ··.lP.t''1c r' O·~ ..;tsu .... ~~. v'· ~ uL .1 .• ..) v.L .~ (,,;..-."'V \.; LJcl~ ... v "-.J,. v. .J> J ' ---' . ... .... j;12Z.'<':G~:.3.rJ.t to tl}') ~}';~')C'': Pinancil:l PL1C~ ~.t; ~jG:.:.',-.• Th~ claL,l to saic". :1L:~')l oy<J 08 ::;:'1.<.,11 ~::'':l C 0~16.v c 'G ':e. pL.'..!'::: ,,~f :':' C -c 0 1:;}1:J [li'CV:i,oJ. on sti.:.-,i1L;~to<l for tha 'l:'ruaSL'.l'ur r s 'tiho :.':r tjl:':: ~;t.:r::;c ]ir...~.,cil A·<LcU.·~ ••••• HI/17/10 Auclit Board, shall be excrnpt od from tho oblication of ao conntabili ty on the method of managcmonf th\.:lroof, (5) lUI ovd denc e and other documents 0:1. what ovar nature beloll6ing )~othc Company's ac c ount ancy and adm.i.nistr~tionf shall be kept ~lt the Companyt a domicile or othur placee appointed by the Ninist'Qr exc cpt . if for tho time being tho~t are moved to tho Financial Au&itivo Board wl~n it is considered necessary for tho purpose of auditing. (6) For the purpose of audi tine related to the tax assossment and acc oun t i.ng aUditj.n;?, in general tho eva denc o and other documents as referred to in paraGraph (5) for the time baing can be moved to the Ministry of Pi.nanc e and/or the Financial and De velopment Supervisory Board. Tv'/olfth Part Reporting Article 51 (1)· For each f'Lco al, year, .the Board of Diroctors shall draw up an arn1ual accoLmtability consisting of a balance sheet and pro fit and loss account. Said balance sheet and profit and 10DS acc ourrt shall be submitted to the nlinioter with copies to the niil1ist er of Ii'inanco, State Financial Andi t Board, Finane ial mld Davelopment Sttporvisory Board, Director General,· and the Supervisory Counc LL at the latest 6 (six) months after the fiscal year according to the method stipulated by the Minis ter. (2) The mo t hod of i t cme evaluation in tho annual acco~t should be mentioned. (3) If within 3 (tl1I'OC) months after receivine said annual ac count no objection in V'l!'iting has been snbmitted by the I.Iin ister, thon said mUlual account shall be cmlsidered 0.0 al ready ratified. (4) The annual, account ahal.L be ratifieu by the rlinister after havd.ng be on eval.uct od jointly by tho r,Ti:niGGor and the r1inis tor of Finance based on tho audit result of tho Finarlcial and Dovelopmont Supc11vis ory Beard or an appointed. AGency. Said ratification shall Grant an acquittaJ. to the Boar'd of Directors from all nat t er-a inserted in said annual account. (5) Tho Presic1ent Director shall be vnder oblic;ation to subnn t a q~arterly report mId other periodical r~ports in accorQanca with the stipulated timo limit, tOGetho11 with the othar reports pursuant to the provisions of the Articles of AGsocie.tion and tho provisions of the le:;islative re[;L"l':"ations, to tho Functionaries7Aeencias as referr(1"'.! to in paragraph ( 1) • Article 52 The eva.l aa t i.on result on the quarterly and annual fil:lancial ro ports and other reporto of tho Company c cnduc tcd by the DirGctor Genoral shall be submitted to tho Ministel1 and the r.~iniotcr of Fmance within the period of at the latcst 2 (two) months after receivil1G the report from the President Direc tor. Article 53 ••• ilJ/17/10 3191 ( 2) Article 53 (1) Tho reports as refe~red to in Articles 51 and 52s1uill be timely sUbmitteu. (2) Tho 'form of the task implem~lltation report'as referred to in. para jr-aph (1) shall' be stipulated by the Minister of Finane e aftE:lr hearinG the considerations of the Ministe~. " Thirteenth Part Utilization of Profit Article 54 (1) Of the nett profit already ratified acc oz-d.ing to Article 51 'shall be set aside for: a. Tho Overall Dovelopment Fund amountinG to 55~ (fifty five po rc errt ) • b. Tho general r-c nor-vo amounb Ing to 2O;~ (twonty porcent) un t i.L oadd genoral r-eao rve shall achieve tho amount of twice as much ~s tho Company's capital; c. Tho objective z-e cer-ve amounting to 5~~ (five percent). d. The remaininG profit amounting to 20/0 (twenty percent) shall bo used for social fund, 'edueatiol1~ production bonus and pension fL'lla contribntion of which tho distribution· ratio specification shall be further stipulated by the, Ministor. ' If tho amount of the Genaral reserve 0.0 referrod to in para Graph (1) letter b has been achieved, the amount of tho nott profit part dostin~d for accumulatinG s~id goneral recorve can further be Lltilizad for ac cumul.at i.ng b ho fund, for finan cine the Company's oapac i tv expansion. Bafor-e said genoral r-ose r-vo shall, achievothe amount of, . twico as much as the Oompany t s 'capital, 'with tha approval of the I.Iinister of Pi.nanc o at the Minis'~or'G proposal, the. Board of Directors can ntilize said g3nereJ. r030rv'J fund for fi , nanc i.ng the Company's capacity expansion. (3) The ob j ec t i.ve resorvo as referred to in par-agr-aph. (1)'lottar c shall among othors bo utilized for acctmlUlatinz the ftma for financing tho Company's capacity expansion. Fourteenth Part Dis~olution of Compm1Y Tho dissolution of' tho Company and the ap'poi~tment of its liqnidator ahal.L be stiptl.latod in, a GoverllElont,Uo;,?;ul8.tion. All Company t a nS[H:l}cS after the 'liquiclation, Shall bee omo the Stat (3 aaso t s, The liquidation eccountability by the liqnidator sh~ll be subnu Jcted to tha Hinister granting acquittr.:i.. and discharge of rccponsibility on the work it 'h~s already completed. CHAFTlm IV••• PM/17/10 3192 CBAF'TER IV TRAlfSITIONAL PHOVISION Articlo 56 By tho offoctiveneos of this Government TIeculatio.n, then the im pl.ement a tion provd ef 011S issued based on Cove rrimenb Rogulations . Numbor 15 year 1972 and Humbar- 2 ;year 1978 shall remain a.pplica.ble as lone as t hoy are not contradictory nor 11cplacod by tho now provisions issued based on this Government RegUlation. CHAPrER V CONCLtIDING PROVISION Article 57 By the effectiveness of thio Governmant Re3tuation, then Govern ment RecUlations Nm,lber 15 Year 1972 and Number 2 Year 1978 shall be declared as nUll a~d void. Articlo 58 This Govornmcn~ TIoculation shall como into force as from tho date of promulgation. For tho public knowloc1.Co ) it Le instructed to promul.gat e this Govenunont Rosulation by inserting it in tho Sta.te Gazette of tho RepUblic of Indonesia. : Jakarta. : AU8ust 23, 1986 FnESIDE~T OF THE REPtmLIC OF INDOn~3IA sicnod Stipuln.tad in On THE SOERARTO 'Promulgat oel in Jakarta ~ AUGust 23, 1986 THE r.IIl'1IGrrEH/STATE SECTIETAny OF THE REF'UBLIC OF IIlDC'L~SIA signed SUDHAill,:ONO p Mastor-af-Laws STATE GAZETTE OF TIill J.U?UBLIC OF INDOlrESIA Y];AR 1986 NULIBER 52. ======== lM/17/10 3193