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In conducting its business, the Company always applies the principles of Good Corporate Governance (“GCG”). The Company believes that good corporate governance can increase value for shareholders and other stakeholders. Moreover, the management is also aware of the Company’s good management ensures sustainable growth of the Company. Therefore, management is fully committed to developing a corporate culture that is in line with good corporate governance principles and apply them in every activities and operations. GCG principles are developed and applied in the Company refer to the Law on Limited Liability Company, namely Law No. 40 of 2007 on Limited Liability Company (State Gazette of the Republic of Indonesia Year 2007 No. 106, Supplement to the State Gazette of the Republic of Indonesia No. 4756). The Company also adhered to the general guidelines of GCG in Indonesia issued by the National Committee on Governance (NCG) as well as guidelines and practices that apply within the Company, namely Waskita Beton Good Corporate Governance Code of Conduct. In applying the GCG principles, management and employees of the Company refer to the five (5) basic principles, namely: transparency, accountability, responsibility, independency and fairness:

1. Transparency

The Company always applies the principle of transparency in decision-making and disclosure of relevant information about the Company in an accurate and timely manner.

2. Accountability

The Company applies the principle of accountability by ensuring the clarity of function, implementation and accountability of performance of Company’s leaders in a transparent and fair manner.

3. Responsibilities

The management perceives responsibility as the compatibility of the management of the Company with the applicable laws and regulations and the principles of sound corporate.

4. Independence

The Board of Directors and Company’s organs are independent and work without the intervention from shareholders and the Board of Commissioner. The management is working professionally without any conflict of interest and influence or pressure from any party that are on the contrary to the applicable laws and regulation and the principles of sound corporate.

5. Fairness

The Company perceives justice/fairness as equality in fulfilling the rights of stakeholders. The Company and its organ constantly try to make sure that every stakeholder receives fair treatment in accordance with the applicable laws and regulations.