Internal Audit

The Internal Audit of the Company functions to provide objective assurance and independent as well as objective consultation that aims to strengthen Internal Control and other specific operational issues. The Internal Audit was established pursuant to a Decree of the Board of Commissioners dated 1 May 2013.

Internal Audit Charter

The Company complies with POJK No. 56/ POJK.04/2015 on the Establishment and Guidelines for the Internal Audit Charter dated 22 June 2020 by having an Internal Audit Charter that specifies the
responsibilities of the Internal Audit. In carrying out its duties and responsibilities, the Internal Audit refers to the Internal Audit Charter, which covers the following:
1. The organisational structure of the Internal Audit and its position within the Company;
2. The qualifications, duties, responsibilities and authority of the auditors;
3. The procedures for their appointment, replacement and termination;
4. The plans, guidelines and reporting procedures of the IA;
5. The independence and objectivity of the IA; and
6. The Code of Ethics for the IA.

The Charter is periodically reviewed and updated and is also available on


Structure and Position of the Internal Audit

Structurally, the Internal Audit is independent of all the Company’s business units and reports directly to the President Director, as shown in the corporate organisation chart in the Company Profile chapter of this Report. The Internal Audit Unit is led by the Head of RM & IA, who is appointed and dismissed by the President Director, pursuant to a Circular Letter regarding the Appointment of the Head of RM & IA, upon approval of the BoC.
Pursuant to the BoC Circular Letter dated 1 May 2013, Maju Tarigan serves as the Head of the Internal Audit of the Company and reports directly to the President Director of the Company. His appointment was conducted following the merging of the Audit and Social Affairs Division with the Risk Management Division.

Duties and Responsibilities

As stated in the Internal Audit Charter, the Internal Audit Unit carries out the following duties and responsibilities:
• Prepare and execute the annual Internal Audit Plan;
• Evaluate the implementation of the Company’s internal control and risk management systems, recommending areas for improvement and monitoring the effectiveness of the recommended follow-up actions;
• Evaluate the efficiency and effectiveness of the Company’s performance in key strategic areas, including finance, accounting, operations, human resources, marketing and information technology;
• Conduct special audits and/or investigations as required;
• Prepare reports on the audit findings for the President Director, the Board of Commissioners and the Audit Committee;
• Provide objective information as well as value-added recommendations for the improvement of the activities under review at all management levels;
• Monitor, analyse, and report on the implementation of followup actions on the recommended improvements;
• Cooperate with the Audit Committee;
• Design programs for quality assessment activities conducted by the Internal Audit Unit.