Benefits of Public Offering

With Free Float > 40%

The Company’s Tax Incentives after Becoming a Public Company based on Government Regulation Number 77 of 2013 concerning Income Tax Rate Reduction for Domestic Entity Taxpayers in the Form of a Public Company

Domestic corporate taxpayers in the form of public companies are eligible for a 5% income tax rate reduction (five percent lower than usual income tax rate for domestic corporate taxpayers)

The above-mentioned income tax rate reduction is available to domestic corporate taxpayers in the form of a public company who meet the following requirements:

1. At least 40% of the total number of paid-up shares are recorded for trading on the Indonesia Stock Exchange and placed in collective custody at a depository and settlement institution;
2. At least 300 Parties must own the shares referred to in letter a;
3. Each Party, as defined in letter b, may own no more than 5 % (five percent of the total issued and fully paid shares) and
4. The provisions referred to in numbers (1), (2), and (3) above must be completed in a minimum of 183 calendar days over the course of one fiscal year.

Company Tax Incentives for Shareholders based on Government Regulation No 14 of 1997, which amends Government Regulation No 41 of 1994, which governs Tax on Income from Share Transactions on the Stock Exchange.

• The amount of Income Tax on the sale of Founder’s Shares is 0.1% (one per thousand) of the gross amount of the sales transaction value
• Founding shareholders are subject to an additional income tax of 0.5% (half percent) of the value of the company’s shares, which is set at the time of the initial public offering.
• If the new company’s shares are traded on the stock exchange, the tax on the founder’s shares must be paid no later than 1 (one) month after the shares are traded on the stock exchange.

Other Benefits

• When the Company’s shares are traded on the Stock Exchange, the share price of the Company will be determined by market mechanisms, and an updated Company valuation may be obtained at any time. Any improvement in performance will generally have an impact on the stock price on the Stock Exchange, increasing the overall value of the Company.
• The Company’s shares will be tradeable if it is listed on the Stock Exchange, allowing Founding Shareholders to realize and monetize investments both during the IPO and subsequently through the secondary market.
• With regular and consistent reporting to the OJK and the Stock Exchange, as well as shareholders and analysts, the transparency and disclosure of the Company’s information are ensured, thereby adhering to the implementation of Good Corporate Governance principles. The Company will also notify the media and financial communities through free publications to maintain the Company’s credibility and ensure positive impact for future business development. Increased transparency fosters professionalism, which in turn fosters a healthy business climate.

Cost of Public Offering

After the Company’s shares are listed on the Stock Exchange, the Company is required follow the provisions, the POJK and Stock Exchange Regulations. Several provisions must be met by the Company, including quarterly financial statements, a general meeting of shareholders, and at least one public exposure per year.