According to the Company Law and the Company’s Articles of Association, all net profits of the Company, after deducting the mandatory reserve, can be distributed to shareholders as dividends, unless otherwise specified in the General Meeting of Shareholders (GMS). The Company can only distribute dividends when it has positive retained earnings.

As per Indonesian regulations, the decision on dividend distribution is determined through shareholder approval at the Annual General Meeting of shareholders (AGMS) based on the recommendation from the Company’s Board of Directors. The Company can distribute interim cash dividends in a year when it records positive retained earnings. The Articles of Association allow for the distribution of interim cash dividends as long as it does not reduce the Company’s net worth below the subscribed and paid-up capital plus mandatory reserves, considering the provisions on mandatory reserve allocations as required by the Company Law. The determination of interim dividends will be made by the Board of Directors after approval from the Board of Commissioners. If the Company incurs a loss after the end of the fiscal year, distributed interim dividends must be retuned by shareholders to the Company. The Directors, together with the Board of Commissioners, will be jointly responsible for the Company’s losses if interim dividends are not returned.

The Company and its Subsidiary will fulfil the mandatory reserve allocation as stipulated in the Company Law.

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

• Operational results, cash flow, and the financial condition of the Company,
• Company’s business planning.

Considering the above provisions, the Company plans to distribute cash dividends up to 80% of the current year’s profit starting from the fiscal year 2024, after setting aside for mandatory reserves and capital expenditure and working capital for operational expense. The actual dividend distribution will depend on the Company’s business activities, cash flow, business prospects, working capital needs, capital expenditures, and investment plans in the future.
There are no negative covenants that could hinder the Company from distributing dividends to shareholders.
The dividend policy is a statement of current intent and is not legally binding, as it is subject to modification by the Board of Directors with shareholder approval at the GMS.”

The company has not paid dividend in the previous years due to the company has plan to use the fund for business development purpose of the company and its subsidiary.