Audit internal

Internal Audit is an activity providing assurance and independent and objective consultation with the purpose to increase value and to improve the Company’s operations through a systematic approach by evaluating and improving the effectiveness of risk management, internal control, and corporate governance process in the Company.

Legal Basis

1. Law No. 40/2007 on Limited Liability Company;
2. Law No. 8/1995 on Capital Market;
3. Financial Services Authority Regulation No. 56/POJK.04/2015 dated 29 December 2015 on Establishment and Guidelines to Prepare Internal Audit Unit Charter.

Internal Audit Charter

Indocement’s Internal Audit Charter was updated and established on May 10, 2016 Indocement’s Internal Audit Charter, among others, regulates:

1. Roles and structure of Internal Audit Division;
2. Requirements for internal auditors;
3. Objectives, duties, responsibilities, and authority of Internal Audit Division;
4. Relationship with external auditors;
5. Accountability, independence, and professional standards for Internal Audit Division;
6. Guidelines and code of ethics of Internal Audit Division.

Party Appointing and Dismissing The Internal Audit Unit Head

The Internal Audit Division is part of the Company’s organizational structure which is directly under the President Director. The Internal Audit Division Manager is appointed and dismissed based on the Board of Directors’ decision, which shall be approved by the Board of Commissioners.

 

Internal Audit Position in the Organization

Profil of Internal Audit Head

Auditor's Code of Ethics

1. Integrity
2. Objectivity
3. Confidentiality
4. Competence

Internal Audit Division's Duties and Responsibilities

Internal Audit Division evaluates the control process, risk, and system in the Company and its subsidiaries. This division also performs audit function on the Company’s operations. The Internal Audit Division effectively assists members of the management in performing their duties and responsibilities, such as:

1. Effectively assisting all members of the management in performing their responsibilities by:
   a. Providing an objective analysis and assessment on activities;
   b. Identifying various operations and good practices for sharing;
   c. Identifying weakness/disadvantage of system design;
   d. Reviewing the eff mitigation initiatives;
   e. Reviewing the effectiveness of GCG implementation;
2. Assessing the design, effectiveness, and implementation of administrative, financial, operating, and security controls as well as the reliability and integrity of the related data that is developed and reported by the Company;
3. Evaluating the adequacy of compliance with plans, policies and procedures and the Company’s compliance with the applicable laws and regulations;
4. Ensuring the adequacy of controls to safeguard Company assets and, if deemed appropriate, verifying the existence of assets;
5. Performing special audits assigned directly by the management of the Company, Board of Directors, or Audit Committee;
6. Conducting an assessment of the economical and efficient use of the Company’s resources and providing appropriate recommendations to the management.
7. Internal Audit provides assurance, as well as independent and objective consultations, to generate added value and improve operational activities. The Internal Audit Division supports the purposes and objectives of the Company through a systematic, orderly, and structured approach in evaluating and increasing the effectiveness of risk management, internal control, and governance process.

 

Qualifications of Internal Audit Division’s Officers

To strengthen the risk-based audit on Company’s technical operations, the qualifications of Internal Audit Division officers consist of Bachelor of Economics and Bachelor of Engineering. The qualifications held by the Internal Audit Division officers until the end of 2025 are presented in the followings.

Name	Educational Background
Yuliana	Bachelor of Economics
Fauzan Adi Wibowo	Bachelor of Engineering
Anang Prasakti	Bachelor of Engineering
Novriansyah Kurniawan	Bachelor of Engineering
Rahmad Hidayat Sinaga	Bachelor of Economics

Internal Audit Division’s Work Program and Its Realization

Throughout 2025, the Internal Audit Division carried out its duties and responsibilities by performing the following work programs:

Jenis Audit Type of Audit	Jumlah Program Total Programs	Jumlah Pelaksanaan Total Audits
Regular Audit	18	19
Special Audit	4	6
Special Project	12	12
Total	34	37

Furthermore, in performing its duties and responsibilities, the Internal Audit Division also held meetings with the Board of Directors and Audit Committee. Throughout 2025, the Internal Audit Division held four meetings with the Board of Directors and three meetings with the Audit Committee

Findings and Follow-Ups

There were 93 internal audit findings with 253 action plans, and 173 action plans were already implemented.

Competence Development Program of Internal Audit Division

Pelatihan Training	Yuliana	Fauzan Adi W.	Anang Prasakti	Novriansyah K.	Rahmad H.S.
GPS On, Problems Gone: Understanding GPS Technology for Everyday Life and Business	-	V	V	V	V
Basic Safety: Behavior Based Safety	-	-	V	-	-
Computer Security Awareness	V	V	V	V
EY Forensics Indonesia Thought Leadership – Corporate Criminal Liability	V	-	-	-	-
Group Ethics Compliance Training	V	V	V	V	V
Hazardous Waste Handling	V	-	V	V	V
IIA Conference–Audit For Tomorrow: Strategic, Future- Ready, Sustainable	V	-	-	-	-
IMI Cares for You–Intergenerational Leadership: Caring Collaboration Across Generations for Global Challenges	-	V	V	-	V
Basic Investigation and Reporting	-	-	-	-	V
Cyber Security Awareness	-	V	V	V	-
Preventing Corruption At Heidelbergcement	V	V	V	V	V
Supervisory Management	-	-	-	-	V
Talkshow: Atificial Intelligence in Today’s Workplace	-	V	V	V	V
The Seven Habits	-	-	V	V	-
AI Webinar: The Age of AI and Social Media—How Do We Optimize It?	-	V	V	-	-
IIA–Workshop Quality Assurance	V	-	-	-	-