Based on the UUPT and the Company’s Articles of Association, all of the Company’s net profit after deducting the allowance for reserves must be distributed to shareholders as dividends, unless otherwise determined in the GMS. The company can only distribute dividends if the company has a positive retained earnings balance. In accordance with Indonesian laws and regulations and the Company’s Articles of Association, decisions regarding dividend distribution are determined through the approval of shareholders at the annual GMS based on recommendations from the Company’s Directors. The company can distribute dividends in the year in which the company records a net profit.

The Company’s Board of Directors determines the dividend distribution policy to the Company’s shareholders by considering factors including (i) compliance with applicable regulations; (ii) the level of the Company’s financial soundness; (iii) targets and projections of future capital adequacy; (iv) the Company’s future business plans and prospects (v) the Company’s capital position and (vi) other matters deemed relevant by the Board of Directors of the Company. The Company also ensures that each dividend distribution plan does not have an adverse impact on the Company’s financial performance or risk profile. Taking into account the decisions of the shareholders at the GMS, the Company’s Directors plan to distribute dividends to the Company’s shareholders with a maximum value of 20% (twenty percent) of the net profit for the financial year concerned, starting from 2023 based on the current year’s profit for the 2022 financial year , after this Initial Public Offering.

If the GMS approves the distribution of dividends, then the dividends will be distributed to all shareholders registered on the date of the list of shareholders entitled to dividends, taking into account income tax and withholding tax in accordance with applicable regulations, if any. The Board of Directors can change the dividend policy at any time as long as it gets approval from the shareholders at the GMS.

The Company has committed to establishing reserves as referred to in Law Number 40 of 2007 concerning Limited Liability Companies, where these reserves will be stated at the next General Meeting of Shareholders (GMS). The Company does not have negative covenants in connection with restrictions on third parties regarding the distribution of dividends.