Dividend Policy

Based on the Company Law and the Company’s Articles of Association, all of the Company’s net profit after deducting the allowance for statutory reserves can be distributed to shareholders as dividends, unless otherwise determined in the GMS. The company can only distribute dividends if the company has a positive profit balance. 

In accordance with Indonesian laws and regulations, decisions regarding dividend distribution are determined through the approval of shareholders at the Annual General Meeting of Shareholders based on recommendations from the Board of Directors of the Company. The Company can distribute cash dividends in the year in which the company records a positive profit balance. The Company’s Articles of Association allow the payment of interim cash dividends as long as the total net worth of the Company does not fall below the issued and paid-up capital plus mandatory reserves, and as long as the provisions for mandatory reserves as required by Company Law are fulfilled. If the Company suffers a loss after the end of the financial year, the interim dividends that have been distributed must be returned to the Company, and the Board of Directors, along with the Board of Commissioners, will be jointly and severally liable for the Company’s losses if the interim dividends are not returned to the Company.  

The Company and Subsidiaries have fulfilled the provision for reserves as stipulated in the Company Law. 

The determination, amount and future payment of dividends on shares, if any, will depend on the following factors, including: 

• The Company’s operational results, cash flow, and financial position; 
• Company’s estimated financial performance and working capital requirements; 
• The Company’s prospective business development strategy; 
• Upcoming business possibilities for the Company; 
• The Company’s capital expenditure and other investment plans; 
• General economic and commercial conditions, as well as other variables deemed relevant by the Company’s Board of Directors, as well as dividend payment restrictions based on associated agreements. 

In consideration to the given provisions, after this Public Offering, the Company intends to pay cash dividends to the Company’s shareholders for the 2021 financial year 2021 and so on up to 30% of the current year’s profit after setting aside mandatory reserves starting from the 2020 financial year 2020. The amount of dividend distribution will be determined by the results of the Company’s business activities and cash flows, as well as the Company’s future business prospects, working capital requirements, capital expenditures, and investment plans. 

There are no negative covenants that can prevent The Company from distributing its dividends to shareholders.

The following outlines the Company’s dividend distribution history for the last four consecutive years: