Corporate Governance

Corporate Governance (hereinafter referred to as CG) is a system, sets of processes, habits, policies, rules, and institutions that influence a company or corporation's directions, management, and control. CG is perfomed based on transparency, accountability, responsibility, independence, fairness, and equality.

PHEI's commitment to implement a Good Corporate Governance (GCG) is outlined in the Company's vision, mission, and core values that promote corporate Governance carried out in objective, independent, credible, and transparent manner.

The implementation of GCG certainly has a positive impact on the sustainability of PHEI. The implementation of GCG also helps PHEI maintainits objectivity, credibility, independence, transparency, and accountability.

The implementation of GCG in PHEI is intended as:

	1.	Guidelines and lead for Commissioners in carrying out the supervision role and giving advice and input to the Board of Directors in managing the Company.
	2.	Guidelines and lead for the Board of Directors in carrying out their obligations to manage the Company by adhering to the Articles of Association, business ethics, applicable laws and regulations, and moral values.
	3.	Guideline for PHEI management and employees in carrying out their daily activities and duties under GCG principles.

Pillars of GCG Implementation at PHEI

	1.	Maintenance of the Code of Ethics and Corporate Governance Guidelines
		The Code of Ethics and Corporate Governance Guidelines are the major lead for the implementation of GCG in PHEI. PHEI periodically reviews the Code of Ethics and Governance Guidelines. This aims to improve the quality of GCG implementation in PHEI.
	2.	Application of Whistleblowing System
		Whistleblowing System (WBS) is an internal control mechanism to prevent violations and/or alleged violations in PHEI activities and environment. The implementation of WBS is intended to improve GCG practices in PHEI.
	3.	Third-Party Certification
		Certification from Third Parties is perfomed through an independent assessment conducted by accredited institutions in conducting independent reviews. The certification is carried out to measure the implementation of PHEI activities in fulfilingits role and function as an independent Securities Pricing Agency.
	4.	Internal Audit Unit
		The Internal Audit Unit is an essential pillar in the implementation of GCG principles and practices in PHEI. The Internal Audit Unit works independently to supervise, assess and inspect the implementation of GCG in PHEI.

Whistleblowing System

Whistleblowing System (WBS) is a platform and mechanism provided for PHEI internal parties and PHEI stakeholders (customers, partners and other stakeholders) to file reports on indications of bribery, fraud, violations of regulations and codes of ethics, conflicts of interest, sexual harassment, theft, embezzlement, forgery, and other illegal activities carried out both by internal PHEI and external PHEI with regard to business activities carried out by PHEI.

The provision of PHEI-WBS facilities is one of PHEI's efforts in implementing Good Corporate Governance and Anti-bribery Management System consistently and continuously, as well as being an effort in order to prevent bribery and violations and early detection of potential violations that may occur.

Reporters can report any indicated violations or violations to PHEI via electronic mail (email) with the following link: LAPOR.

Reports can also be submitted to PHEI through the following channels:

•

A sealed letter with an envelope marked "CONFIDENTIAL", addressed to:

PT Penilai Harga Efek Indonesia

Indonesia Stock Exchange Building Tower 1 GF Floor

Jl. Jend. Sudirman Kav. 52-53, Jakarta 12190

UP : Head of SPI/Anti-Bribery Compliance Function

•

Email, melalui alamat: fkap@phei.co.id

PHEI provides protection to the Reporter from all forms of threats, intimidation, punishment or unpleasant actions from any party as long as the reporter maintains confidentiality of the reported case. PHEI also guarantees the confidentiality of the entire contents of the report including the identity of the Whistleblower.

(link) LAPOR

Anti-Bribery Management System

With regard to the implementation of the ISO 37001: 2016-based Anti-Bribery Management System (SMAP) within PT Penilai Harga Efek Indonesia (PHEI), we urge and invite users of PHEI products and services and PHEI partners to support PHEI's commitment to implement anti-bribery and carry out business with integrity and through the application of the 4 NOs principle, which are:

	1.	No Bribery
	2.	No Kickback
	3.	No Gift
	4.	No Luxurious Hospitality

In line with the implementation of SMAP at PHEI, we also invite all users of PHEI products and services, PHEI partners, and all PHEI stakeholders to jointly carry out a monitoring mechanism by reporting to us if you find or know of any indication of bribery or other violations that occur within PHEI. Reporting can be submitted to the official PHEI Whistleblowing System (WBS) channel via electronic mail (email) with the following link: LAPOR

(link) LAPOR

In accordance with Good Corporate Governance (GCG) principles, PHEI is committed to improving Governance that is implemented consistently. To maintain and ensure the implementation of GCG is carried out correctly, PHEI conducts the following certifications:

	1.	Quality Management System ISO 9001
		PHEI obtained ISO 9001:2008 Certification in 2016 to provide products and services for assessing and pricing market fair securities (provision of bond pricing). The certification assessment is conducted by Llyod Register, the world's leading independent assessment service provider. Furthermore, in 2018, PHEI obtained ISO 9001:2015 Certification in the same field and this certification is renewed in September 2022.

		Certificate Number : 10465010
	2.	Anti-Bribery Management System ISO 37001
		PHEI obtained Anti Bribery Management System – ISO 37001:2016 Certification in 2023 to provide products and services for assessing and pricing market fair securities (provision of bond pricing). The certification assessment is conducted by British Standards Institution Group Indonesia (BSI), one of 11 SMAP certification institution that have been accredited by the National Accreditation Committee.

		Certificate Number : IABMS 788108

The Internal Audit Unit is a supporting organ of GCG implementation that assists the Board of Directors in ensuring PHEI compliance in each of its activities in line with the laws and regulations, the Company's standard operating procedures, code of conduct and GCG guidelines. The Internal Audit Unit also ensures that the internal control system in PHEI is implemented adequately, efficiently, and effectively.

Internal Audit Unit has duties and responsibilities, among others :

	1.	Prepare an annual audit plan to ensure that the audit methodology used complies with regulatory aspects, Good Corporate Governance, risk control principles, and operational compliance.
	2.	Conduct inspections, evaluate audit activities, and ensure the auditee carries out the follow-ups the recommendations.
	3.	Conduct internal evaluation and improvement required to implement the examination that has been carried out.
	4.	Monitoring the implementation of the Company's activities in line with laws, procedures, codes of ethics, and GCG guidelines.
	5.	Ensure the implementation of the Whistle-Blowing System is carried out effectively, efficiently, and confidentially.