External Auditor

PUBLIC ACCOUNTANT

The use of Public Accountant service that is included in External Auditor is required to state the opinion on fairness, in all material respects, financial position, financial performance, change in equity and cash flows in accordance with the prevailing accounting principle in Indonesia. Basically, statement of Public Accountant is the opinion of independent third party on the fairness of Financial Statements delivered to shareholders and other stakeholders concerning material matters included in the financial statements.

Public Accountant who audit the Company’s financial statements for 2017 fiscal year was appointed through Annual General Meeting of Shareholders (AGM) based on the recommendation from the Board of Commissioners and Audit Committee. To ensure the independence and quality of the result of audit, the appointed external auditor shall not
have conflict of interest with any official of the Company.

Public Accountant Appointment Mechanism

Referring to the Regulation of Minister of Finance No. 17/ PMK.01/2008 Article 3 paragraph (1) on Public Accounting Services, that General Audit Services of Financial Statements by a Public Accounting Firm (KAP) can be done for 6 consecutive years at the longest, whereas by a Public Accountant is for 3 three consecutive years at the longest.

On that basis, the GMS asked the Board of Commissioners through the Audit Committee to appoint the Public Accountant to audit the Company’s Financial Statements and Annual Report for the Financial Year ended December 31, 2016 by referring to the regulations in force. The General Meeting of Shareholders decided to approve the decision of the Board of Commissioners to assign KAP Amir Abadi Jusuf, Aryanto, Mawar & Partners to conduct the audit of PT Waskita Beton Precast Tbk Financial Statements.

Chart of public accountant selection mechanism:

Appointment of Public Accountant

By referring to the Annual GMS resolutions as stated in the Minutes of the Company’s GMS regarding the ratification of financial statements of 2017 fiscal year, the GMS delegated the authority to the Board of Commissioners to appoint the public accounting firm (KAP) to conduct audit on the Financial Statements for 2017 Fiscal Year, having regard to BPK RI Letter No. 1/S/IX/01/2009 dated January 15, 2009 and the Letter of Secretary General of the Ministry of Finance No. S-91/SJ/2007 dated February 5, 2007, and also active involvement of the Audit Committee.

In accordance with Letter of the Ministry of SOEs No. S-366/ MBU/06/2017 dated June 15, 2017 on Appointment of Public Accounting Firm (KAP) to Audit the Consolidated Financial Statements of PT Waskita Karya (Persero) Tbk for 2017 Fiscal Year, Public Accounting Firm Satrio Bing Eny and Partner has been appointed as Public Accountant to audit the Company`s fiscal year for 2017 fiscal year.

Scope of Work of Public Accountant

1. To conduct General Audit on the Company’s Consolidated Financial Statements for Financial Year 2017 that includes audit on the review of Consolidated Financial Statements in accordance with Financial Accounting Standards in Indonesia.
2. To review the Company’s Performance Report for Financial Year 2017 according to MMBR report pursuant to Regulation of Chairman of the Capital Market and Financial Institution Supervisory Agency No. PER-08/ BL/2012 dated December 27, 2012 and the Regulation of the Minister of Finance No. 53/PMK.010/2012 dated April 3, 2012.
3. To conduct Compliance Audit on the Regulation and Internal Control applied by the Company for the year ended on December 31, 2017 based on PSAK, especially regarding Audit Compliance on regulation and internal control.