We have a policy regarding the Appointment and Evaluation of the Company's Public Accountant (AP) and/or Public Accounting Firm (KAP). The policy aims to ensure that the audit services provided are high-quality, effective, comply with regulatory requirements, and independent. The appointment and evaluation of our AP and/or KAP is carried out by referring to the provisions of applicable laws and regulations, including, but not limited to, the regulations in the capital market.
We begin the process of selecting and appointing an AP and/or KAP through a tender by inviting KAPs that are registered with the OJK, have a good reputation, have experience in the relevant industry with the Company and its subsidiaries, able to provide audit services in accordance with the scope of assignments required by the Company and its subsidiaries (including audit services related to the offering of securities or debt securities on the international market), and have an international network. Our management prepares further criteria for KAPs to be invited to participate in the tender process and these criteria require the approval of the Audit Committee.
Management, led by the Group Finance Director and the Audit Committee, carry out the tender process by taking into account the Basic Principles, technical factors, and commercial factors. The Audit Committee, assisted by Management, prepares a recommendation on the appointment of the AP and KAP for the Board of Commissioners of the Company’s approval and will be ratified at the Annual General Meeting of Shareholders.
We will publish the name of the proposed AP and/or KAP that will be appointed at the Annual General Meeting of Shareholders when announcing the notice of the Annual General Meeting of Shareholders.
As part of the supervisory process for the audit services on the Historical Financial Year Information by the AP and/or KAP, the Audit Committee will hold regular meetings with Management and External Auditors at least three times a year to monitor the progress of the External Auditor's responsibilities for auditing the consolidated financial statements, and review the audit findings as well as follow-up on the Auditor's findings from the previous year. At the end of each audit period, the Audit Committee will also evaluate the audit services performance provided by the AP and/or KAP.
The Company establishes a policy to conduct a tender for KAP selection if audit services have been provided by the same KAP for 5 consecutive years. The tender policy in the KAP selection aims to maintain audit quality and independence of the KAP and AP.
A KAP that has provided audit services in the previous period (incumbent auditors) is given the same opportunity as other KAPs to participate in the tender process.