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Page 2
Disclaimer and
Limitation of Liability

Our 2024 Annual Report is prepared to comply with
the requirement to report our performance for the
period of January 1, 2024 to December 31, 2024 to
the regulators and stakeholders. This Annual Report,
among others, is prepared based on Financial Services
Authority Regulation No. 29/POJK.04/2016 concerning
Annual Reports of Issuers or Public Companies
with contents in accordance with Financial Services
Authority Circular Letter No. 16/SEOJK.04/2021
concerning Forms and Contents of an Annual Report
of Issuers or Public Companies.

This Annual Report contains statements related
to objectives, policies, plans, strategies, as well as
operational and financial results prepared based on
accountable factual data. In addition, this Annual
Report also presents information related to our
forecasts for the following year that are prepared
based on prospective statements and various
assumptions regarding the future conditions of our
Company, as well as the related business environment,
thus the actual developments may materially differ
from the report. Therefore, we urge the stakeholders
to use the information contained in this report wisely
when making decisions.
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                                                                               PT Avia Avian Tbk • 2024 Annual Report




Towards
a Sustainable
and Colorful
Future

PT Avia Avian Tbk (hereinafter referred to as
“Avian Brands” or “AVIA” or ”we”) continuously integrates
its achievements with its long-term aspiration
to create innovative and sustainable products.
By providing high-quality products that are certified
environmentally friendly, Avian Brands solidifies
its position as a paint industry leader committed
to sustainability and environmental responsibility.
This year, Avian Brands also managed to record
a strategic achievement of securing new international patents, further reinforcing its competitive edge in the industry.
This move reflects Avian Brands’ focus on sustainable innovation that provides added value not only for customers,
but also for the environment and society at large. These patents are tangible evidence of Avian Brands’ dedication to
developing products relevant to market needs while simultaneously contributing to its long-term sustainability objectives.

This commitment to sustainability is evident not only from product innovation but also from various strategic efforts to
deliver sustainable positive impacts. With a holistic approach, Avian Brands is not only oriented towards achieving business
targets, but also on making tangible contributions to the social and environmental ecosystem. Avian Brands believes that
true success means providing long-term benefits to all stakeholders, including the community, customers, business partners,
and the environment. Through these strategic initiatives, Avian Brands continues to move forward to realize its vision of
becoming an industry player that gives color to people’s lives and maintains harmony with nature and the future. By doing so,
Avian Brands will always be part of the solution to create a more sustainable, innovative, and colorful world.




                                                                                                                           1
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Theme Continuity


                        Painting a Beautiful
          2023
                        Picture of Indonesia

For over 4 decades, Avian Brands has been bringing beautiful colors to the lives
of millions of families in Indonesia, by providing a diverse range of high-quality
and eco-friendly paint products. As a pioneer in the paint manufacturing industry,
we recognize the paramount importance of positively contributing to the environment
and the community. Thus, since its inception, Avian Brands has not only brought
colors through its products, but also through continuous commitment to responsible
business practices.

As part of this ongoing commitment, we continue to conduct research and development
to introduce more environmentally friendly paint solutions. By consistently exploring
the potential for innovation in paint formulations that are both more efficient and
ecological, we aspire to continue painting Indonesia with colors that are not only
beautiful but also sustainable. Moreover, we steadfastly strengthen partnerships with
local communities, support social initiatives, and invest in educational programs to
shape a brighter and more colorful future for the next generation.




                        4 Brighter Future
          2022
                        4 Colourful Indonesia

The business continuity of Avian Brands for more than 44 years has been
achieved through prudent business management and continuous innovation.
During our journey, Avian Brands continues to move forward in accordance with our
Vision “to become an integrated, excellent, environmentally friendly, and leading paint
company in Indonesia”. Each of our policies and strategies is geared towards adding
value to various groups of stakeholders. This commitment may be seen in product
innovations that take into account environmental friendliness and customer health.

A total of 24 of our paint products have earned Singapore Green Label certifications.
Most of our paints are made with water-based materials and environmentally friendly
raw materials to support the green building concept. In addition, we manufacture
paints with green active technology, which can lower the room temperature, as well
as paints with protection against viruses and bacteria, so they do not stick to the walls.
All these innovations aim to support a healthier and brighter future for Indonesia in the
colorful array of our products.




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                                                                                   PT Avia Avian Tbk • 2024 Annual Report




Our innovations have earned positive appreciation from external parties.
From the operational aspect, we obtained a Green Industry Certificate (Sertifikat
Industri Hijau) for operational activities that prioritize efficiency and effectiveness in
the utilization of resources in a sustainable manner to encourage environmental
sustainability. Furthermore, we have also obtained Green PROPER (PROPER Hijau)
for optimizing our environmental impact management beyond the necessary
requirements. These achievements also make us the first paint company in Indonesia
to achieve Green PROPER.




                        The Color of
          2021
                        Sustainability

For more than 43 years, Avian Brands has provided leading benefits and contributed
to a colorful Indonesia. We continue to support the community in achieving better
lives through a variety of product portfolios and business activities. We believe that
a business operated with a noble purpose and a business model that is adjusted and
able to compete with future needs will yield excellent performance. Therefore, we are
committed to becoming a leading paint company that prioritizes sustainable business
and environmentally friendly products.

In line with that, we continue to strive to improve our competitive advantages through
various adjustments and strengthening within our company. In terms of products,
we own Avian Innovation Center, which aims to develop and provide the latest product
innovations. We also own an extensive distribution network through a combination
of wholly-owned distribution centers as well as independent distribution centers.
In addition, we took a big step in conducting an Initial Public Offering on the Indonesia
Stock Exchange in order to strengthen our capital structure. These steps further
affirmed our position as the paint market leader in Indonesia.




                                                                                                                            3
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Competitive
Strengths
        Leading paint producer in Indonesia
    1
        with strong brand recognition.




                Well-positioned to gain advantages
          2     of the favorable industry growth
                dynamics in Indonesia.



        Extensive distribution network and
        access across Indonesia. Supported by
    3   124 wholly-owned distribution centers and
        15 wholly-owned mini-distribution centers,
        and 38 independent distribution centers.



                Highly committed and visionary
          4     management team with a strong
                track record of success.



        Ability to offer differentiated and
        innovative solutions supported
    5   by industry-leading research and
        development capabilities in
        decorative paints and coatings.


                Production excellence, which is
                underpinned by Avian Brands’ vertically
                integrated manufacturing capabilities
          6
                and in-house raw material production,
                is supported by Avian Brands’ long-term
                relationships with key suppliers.




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                                                                               PT Avia Avian Tbk • 2024 Annual Report




2024
Performance
“Amidst the growing external challenges throughout 2024, Avian Brands managed to maintain its edge as the leader in
national paint industry, which resulted in excellent operational and financial performance.”




           Production Performance                        Research and Development Performance


  Avian Brands’ production performance in 2024            Avian Brands’ consistency in conducting
  reached 197,339 metric tons, an increase of 9.30%       continuous research and development on its
  compared to the previous year. These results            products has delivered increasingly positive
  were predominantly produced by Sidoarjo Plant,          results. In 2024, Avian Brands succeeded in
  amounting to 137,950 metric tons or 69.91%              securing global patents for the “Magnetite Paint
  of Avian Brands’ total production, with Serang          (Fe₃O₄)” applied to HomeDeco Magnetic
  Plant producing 59,389 metric tons or 30.09% of         product, and the “Additive for Accelerating
  Avian Brands’ total production.                         the Hardening and Reinforcing of Enhanced
                                                          Concrete” applied to No Drop Plaston product.
                                                          Moreover, Avian Brands has successfully
                                                          launched 15 new products into the market,
                                                          further strengthening its product portfolio and
                                                          competitive edge in the industry. These products
                                                          are designed to respond to dynamic market
                                                          needs, focusing on innovation, quality, and
                                                          sustainability.




          Profitability Performance                         Distribution Network Performance


  Avian Brands successfully recorded a net                Avian Brands continues to strengthen its
  revenues of IDR7,471.36 billion, an increase            distribution network in order to improve
  of 6.48% compared to the previous year.                 customer accessibility to Avian Brands’ products.
  This achievement drove Avian Brands’ profit             As of the end of 2024, its distribution network has
  for the year, which was recorded at IDR1,663.70         reached 34 provinces and 98 cities in Indonesia,
  billion, an increase of 1.25% compared to the           consisting of 124 wholly-owned distribution
  previous year.                                          centers and 15 wholly-owned mini-distribution
                                                          centers, as well as 38 independent distribution
  This robust profitability performance and financial     centers.
  strength enable Avian Brands to consistently
  deliver added value to stakeholders, particularly       This extensive network allows Avian Brands to
  regarding dividend distribution to Shareholders.        achieve 91% of its one-day delivery target that
  In 2024, Avian Brands distributed cash dividends        guarantees delivery of orders within 2 hours for
  of IDR11.- per share or a total of IDR676.16 billion    new products, removing the need for customers
  and interim dividends of IDR11.- per share or a         to keep inventory. This strategy ensures timely
  total of IDR671.98 billion.                             and efficient product availability in various
                                                          regions in Indonesia.




                                                                                                                        5
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Table of Contents
    Disclaimer and Limitation of Liability             i   2024 Performance                                      5
    Theme Continuity                                   2   Table of Contents                                     6
    Competitive Strengths                              4


       PERFORMANCE HIGHLIGHTS                                                                               9
    Key Financial Data Overview                       10   Information regarding Bonds, Sukuk, or               13
    Operational Overview                              12   Convertible Bonds

    Share Overview                                    12   Significant Events                                   14
    Corporate Action                                  13   Awards and Certifications                            23
    Share Trading Information                         13


       MANAGEMENT REPORT                                                                                    33
    The Board of Commissioners Report                 34   The Board of Directors Report                        40



       COMPANY PROFILE                                                                                      47
    Company Identity                                  48   Shareholder Information                              75
    Milestones                                        50   Main and Controlling Shareholders                    76
    Brief History                                     53   Chronology of Share Listing                          77
    Company Vision, Mission, and Values               54   Sharia Securities                                    77
    Meaning of Avian Logo                             56   Company’s Stock Index                                78
    Business Activities                               57   Chronology of Other Securities Listing               78
    Products and Services                             59   Corporate Structure                                  78
    Manufacturing Facilities                          62   Subsidiaries, Associates, and Joint-Ventures         79
    Operational Areas                                 63   Capital Market Supporting Institutions and           80
    Organizational Structure                          64   Professions
    Membership in Associations                        65   Information Access                                   81
    Profile of the Board of Commissioners             66   Human Resources                                      81
    Profile of the Board of Directors                 69   Information Technology                               89


       MANAGEMENT DISCUSSION AND ANALYSIS                                                                   95
    Economic Overview                                 96     Consolidated Statement of Profit or Loss and    107
    Industry Overview                                 96     Other Comprehensive Income
    Operational Overview                              97     Consolidated Statement of Cash Flows            108
    Marketing and Distribution Aspect                102     Solvency                                        109
    Financial Overview                               104     Collectability of Account Receivables           110
      Consolidated Statement of Financial Position   104     Capital Structure                               110




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                                                                    PT Avia Avian Tbk • 2024 Annual Report




  Capital Goods Investment                         111     Business Prospects                                 115
  Material Commitments related to                  111     Target Achievement Strategy                        116
  Capital Goods Investment                                 2025 Projection                                    116
  Realization on Use of Proceeds from              112     Avian Brands' Strategic Plans                      117
  Public Offering
                                                           Changes in Accounting Policies                     119
  Dividend Policy and Distribution                 112
                                                           Changes in Laws and Regulations with               120
  Material Information Concerning Investment,      113     Significant Impacts on Avian Brands
  Expansion, Divestment, Merger/Consolidation,
                                                           Material Information after                         120
  Acquisition, and/or Debt/Capital Restructuring
                                                           the Financial Statement Date
  Material Transactions Containing Conflicts of    113     Business Continuity Information                    120
  Interest or Transactions with Related Parties
  Comparison of Target and Realization in 2024     115


  GOOD CORPORATE GOVERNANCE                                                                                  123
Commitment to Implementing                         124   Internal Control System                              173
Good Corporate Governance                                Risk Management System                               175
Basis of Good Corporate Governance                 125   Legal Disputes with Material Impacts and             178
Implementation                                           the Administrative Sanctions Imposed
Structure of Good Corporate Governance             126   Code of Conduct                                      178
Mechanism of Good Corporate Governance             127   Employee Stock Allocation Program                    180
General Meeting of Shareholders                    127   Information Disclosure Policy                        182
The Board of Commissioners                         137   Whistleblowing System                                183
The Board of Directors                             143   Anti-Corruption and Gratification Policy             185
The Board of Commissioners and the Board of        148   Policy to Prevent Insider Trading                    186
Directors Diversity Policy                               Policy on Fulfillment of Creditors’ Rights           186
Nomination and Remuneration of the Board of        149   Conflict of Interest Guidelines                      187
Commissioners and the Board of Directors
                                                         Communication Policy Guidelines                      187
Sharia Supervisory Board                           150   Policy Guideline in Resignation Procedure of         188
Committees Under the Board of Commissioners        150   the Board of Commissioners and
  The Audit Committee                              151   the Board of Directors in the Event of Involvement
  The Nomination and Remuneration Committee        155   in Financial Crime
  The Good Corporate Governance Committee          159   Affiliated Transaction Guidelines                    188
Committees Under the Board of Directors            162   Succession Policy in the Board of Commissioners      189
                                                         and the Board of Directors Nomination Process
  The Related Party Transaction Committee          162
                                                         Implementation of Governance Guidelines              189
The Corporate Secretary                            165
                                                         for Public Companies
The Internal Audit Unit                            168
Public Accountant                                  171



  SOCIAL AND ENVIRONMENTAL RESPONSIBILITY                                                                    193
Avian Brands' Sustainability Commitment            194   Sustainability Performance Overview                  195



Statement of Members of the Board of Commissioners and Members of the Board of Directors                      197
on the Responsibility for the 2024 Annual Report of PT Avia Avian Tbk
Consolidated Financial Statements of PT Avia Avian Tbk and Subsidiaries                                       199




                                                                                                               7
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    PT Avia Avian Tbk • 2024 Annual Report




Performance
  Highlights




                                             9
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                                         PERFORMANCE HIGHLIGHTS




Key Financial Data Overview
                                                                                      (in millions Rupiah, unless otherwise stated)

                                         Description                               2024            2023*              2022
 Consolidated Statement of Financial Position
 Total Assets                                                                    11,060,975     11,166,987        10,792,122
 Total Current Assets                                                             8,493,362        8,910,802         8,716,715
 Total Non-Current Assets                                                         2,567,613        2,256,185         2,075,407
 Total Liabilities                                                                1,429,095       1,245,498         1,217,237
 Total Current Liabilities                                                        1,351,585        1,175,130         1,108,163
 Total Non-Current Liabilities                                                       77,510            70,368          109,074
 Total Equity                                                                     9,631,880       9,921,489         9,574,885
 Total Liabilities and Equity                                                    11,060,975     11,166,987        10,792,122
 Consolidated Statement of Profit or Loss and Other Comprehensive Income
 Net Revenues                                                                     7,471,356        7,016,882         6,694,171
 Cost of Goods Sold                                                              (4,130,606)     (3,833,546)       (3,976,771)
 Gross Profit                                                                     3,340,750        3,183,336         2,717,400
 Profit Before Income Tax Expense                                                 2,068,594        1,992,143         1,745,247
 Income Tax Expense                                                               (404,895)        (349,047)         (344,882)
 Profit for the Year                                                              1,663,699        1,643,096         1,400,365
 Other Comprehensive Income (Loss)                                                 (46,983)            81,403        (127,454)
 Total Comprehensive Income for the Year                                          1,616,716        1,724,499         1,272,911
 Profit for the Year Attributable to:
     Equity Holders of the Parent Company                                         1,664,341        1,642,166         1,400,561
     Non-Controlling Interests                                                        (642)               930             (196)
 Total Comprehensive Income for the Year Attributable to:
     Equity Holders of the Parent Company                                         1,617,351        1,723,608         1,273,081
     Non-Controlling Interests                                                        (635)               891             (170)
 Basic and Diluted Earnings per Share Attributable to the Owners of the Parent
                                                                                      27.16             26.51             22.61
 (Full Rupiah)
 Consolidated Statement of Cash Flows
 Net Cash Provided by Operating Activities                                        1,766,128        1,640,834         1,461,499
 Net Cash Provided by (Used in) Investing Activities                              1,262,474      (1,138,195)           559,932
 Net Cash Used in Financing Activities                                           (1,933,622)     (1,440,808)       (1,146,154)
 Consolidated Financial Ratio
 Profitability Ratio (%)
 Consolidated Profit for the Year to Consolidated Net Revenues                        22.27             23.42             20.92
 Consolidated Profit for the Year to Consolidated Total Assets                        15.04             14.71             12.98
 Consolidated Profit for the Year to Consolidated Total Equity                        17.27             16.56             14.63
 Liquidity Ratio (x)
 Consolidated Total Current Assets to Consolidated Total Current Liabilities           6.28               7.58              7.87
 Solvency Ratio (x)
 Consolidated Total Liabilities to Consolidated Total Assets                           0.13               0.11              0.11
 Consolidated Total Liabilities to Consolidated Total Equity                           0.15               0.13              0.13
* Data reclassified.




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                                                                                               PT Avia Avian Tbk • 2024 Annual Report




Total Assets                                      Total Liabilities                                   Total Equity
(in million Rupiah)                               (in million Rupiah)                                 (in million Rupiah)



     (0.75)       3.47       (0.95)     YoY (%)       (16.52)      2.32       14.74      YoY (%)            1.69       3.62       (2.92)     YoY (%)

                                                                             1,429,095
                                                                                                                     9,921,489
                11,166,987 11,060,975                            1,245,498
   10,792,122                                        1,217,237
                                                                                                         9,574,885               9,631,880




    2022         2023        2024                     2022         2023       2024                        2022         2023       2024




Net Revenues                                      Profit Before Interest, Tax,                        Profit for the Year
(in million Rupiah)                               Depreciation, and Amortization                      (in million Rupiah)
                                                  (in million Rupiah)



     (1.26)       4.82        6.48      YoY (%)       (16.36)      15.85       5.53      YoY (%)           (2.38)      17.33       1.25      YoY (%)

                            7,471,356
                7,016,882                                        1,927,857   2,034,486                               1,643,096   1,663,699
   6,694,171                                         1,664,169                                           1,400,365




    2022         2023        2024                     2022         2023       2024                        2022         2023       2024




Consolidated Profit for                           Consolidated Total Current Assets                   Consolidated Total Liabilities
the Year to Consolidated                          to Consolidated Total Current                       to Consolidated Total Equity
Net Revenues                                      Liabilities


     (1.14)      11.95       (4.91)     YoY (%)        18.58       (3.68)    (17.15)     YoY (%)          (17.91)      0.00       15.38      YoY (%)


                 23.42%                                7.87x
                                                                                                                                  0.15x
                             22.27%                                7.58x
    20.92%
                                                                              6.28x
                                                                                                           0.13x       0.13x




    2022         2023        2024                     2022         2023       2024                        2022         2023       2024




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                                    PERFORMANCE HIGHLIGHTS




Operational Overview
                                                                                                    (in millions Rupiah, unless otherwise stated)

                                       Description                                              2024              2023                2022
Architectural Solutions (Wall, Wood and Metal, Waterproofing, Wood Care, and Others)         5,847,703           5,618,025          5,384,019
Trading Goods (Pipes, Furniture, and Supporting Products)                                    1,623,653           1,398,857          1,310,152
Total Net Revenues                                                                           7,471,356         7,016,882            6,694,171




Share Overview

                            Shares Price                        Transaction                Number of                      Market
 Period          Lowest        Highest           Closing          Volumes              Outstanding Shares              Capitalization
                  (IDR)         (IDR)             (IDR)           (Shares)                  (Shares)                       (IDR)

                                                               2024
Quarter 1         488            610               550         1,814,180,700             61,556,537,600             34,074,455,580,000
Quarter 2         488            570               515         1,353,097,300             61,256,923,300             31,906,081,134,000
Quarter 3         444            535               498         1,469,498,600             61,195,158,500             30,852,870,688,800
Quarter 4         358            520               400         3,563,375,400             60,790,106,400             24,781,422,240,000
                                                               2023
Quarter 1          565           685                595           512,099,400             61,953,555,600              36,862,365,582,000
Quarter 2          565           760                665           492,363,100             61,953,555,600              41,199,114,474,000
Quarter 3          550           670                560           536,594,400             61,953,555,600              34,693,991,136,000
Quarter 4          422           575                500         1,911,509,200             61,918,936,800              30,976,777,800,000

     Transaction Volumes                                                                                              Closing Price
           (Shares)                                                                                                       (IDR)
     5,000,000                                                                                                                  800

     4,500,000
                                                                                                                                700
     4,000,000
                                                                                                                                600
     3,500,000

                                                                                                                                500
     3,000,000

     2,500,000                                                                                                                  400

     2,000,000
                                                                                                                                300
     1,500,000
                                                                                                                                200
     1,000,000

                                                                                                                                100
      500,000

             -                                                                                                                  -
                           r  r
                 Jan Feb Ma Ap May Jun     Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun     Jul Aug Sep Oct Nov Dec

                                    2023                                                    2024

                             Transaction Volumes (Shares)                          Closing Price (IDR)


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                                                                               PT Avia Avian Tbk • 2024 Annual Report




Corporate Action




Throughout 2024, Avian Brands has conducted                      trading costs, and other costs). This corporate action does
a buyback of Avian Brands’ shares that had been                  not affect the nominal value of shares listed on the stock
issued and listed on the Indonesia Stock Exchange, in            exchange.
accordance with the resolutions of the Extraordinary
General Meeting of Shareholders on December 7, 2023.             Apart from the share buyback, Avian Brands did not conduct
As of December 31, 2024, the total number of repurchased         any other corporate actions in 2024, including stock
shares amounted to 1,163,449,200 shares or approximately         split, reverse stock split, distribution of stock dividends,
1.88% of all shares listed on the Indonesia Stock                distribution of bonus shares, change in nominal value of
Exchange, so the total number of outstanding shares is           shares, issuance of convertible securities, or capital injection
60,790,106,400. This corporate action, scheduled to be           and reduction.
carried out within 18 months at most, has absorbed funds
totaling IDR574,834,813,406.- (including transaction costs,




Share Trading Information
During 2024, we did not experience any temporary suspension of share trading or delisting.




Information regarding Bonds, Sukuk
or Convertible Bonds
Until the end of 2024, we have never issued bonds, sukuk, or convertible bonds.




                                                                                                                              13
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                                       PERFORMANCE HIGHLIGHTS




Significant Events

                                                        FEBRUARY 1, 2024




Launch of Avian Cling Water Based                                       Launch of Boyo Politur Spray

Avian Brands launched Avian Cling Water Based, a water-based            Avian Brands launched Boyo Politur Spray, the first spray wood
synthetic paint product for application on metal, wood and              polish product in Indonesia. It contains modified urethane,
walls. Using high-quality acrylic resin, it prevents yellowing          designed for easy application by anyone, anywhere, anytime.
and comes with a long-lasting glossy look. Its advantages               It can reach tight areas of the wood surface, resulting in a
include sticking directly to the metal without primer, being            smoother, more consistent finish. With its quick-drying and
odorless, and being environmentally friendly. This product may          UV-resistant formula, Boyo Politur Spray is ideal for use on
be applied by various methods, including brush, spray, and              both interior and exterior wood. Other advantages include
roll, providing flexibility in its application. Available in various    no pungent odor and no lead contents, ensuring a safe and
attractive colors, Avian Cling Water Based is the ideal solution        convenient application. Available in four favorite wood colors,
for customers looking for beautiful and long-lasting finishes.          Boyo Politur Spray offers a no-fuss, high-quality solution for
                                                                        wood beauty and preservation. Simply Spray, No Hassle.
                                                                        (Tinggal Semprot, Tanpa Repot).



                                                        FEBRUARY 22, 2024

                                                                       Launch of No Drop Tile Grout

                                                                       Avian Brands launched No Drop Tile Grout, the first ceramic
                                                                       tile grout filler product in Indonesia, specifically designed
                                                                       with the main features of being leakproof and resistant to
                                                                       ceramic cleaning liquid. This innovative product provides
                                                                       maximum protection for ceramic tile grout, ensuring that floor
                                                                       and wall areas remain protected from dampness and leaks.
                                                                       Designed to meet customers’ needs in various environments,
                                                                       No Drop Tile Grout provides a durable and resilient solution
                                                                       against exposure to water and cleaning chemicals. It is easy
                                                                       to apply, and its finishing result ensures a tighter and more
                                                                       durable grout, making it the best choice for maintaining a clean
                                                                       and beautiful ceramic tile surface. With No Drop Tile Grout,
                                                                       Avian Brands continues to deliver innovative solutions to support
                                                                       household comfort and protection.




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                                                                                    PT Avia Avian Tbk • 2024 Annual Report




                                                      MARCH 1, 2024




Launch of No Drop Dempul Instan                                      Launch of No Drop Serat Fiber

Avian Brands launched No Drop Dempul Instant, a practical            Avian Brands launched No Drop Fiber, an innovative product
solution to seal holes in the walls quickly and easily with zero     specifically designed to reinforce the waterproofing layers of
hassle. This product is specifically designed to repair minor        your house or building, ensuring longer prevention against
damage to walls, such as holes or cracks, with neat and smooth       leakage. This product uses high-quality fiber that effectively
results. This easy-to-use product allows anyone to apply it          fills cracks, providing extra protection to walls and roofs
without requiring any special skills. With its quick-drying          from damage caused by water and weather changes. With
formula, this product enables instant and efficient repairs,         its excellent durability, No Drop Serat Fiber helps preserve
bringing walls back to their original condition in no time.          the building’s integrity in the long run. It is easy to apply and
                                                                     provides strong and durable results, making it the ideal solution
This product is an ideal choice for those looking for a practical
                                                                     to protect surfaces against leaks and cracks.
and effective wall repair solution with no complex tools or steps
required.




                                                      MAY 13, 2024

                                                                    Signing of Memorandum of Understanding between
                                                                    Avian Brands and PT Bank Tabungan Negara (Persero) Tbk
                                                                    (“BTN”) on Cooperation in Banking Services Provision and
                                                                    Utilization

                                                                    In an effort to strengthen its business network and improve
                                                                    customer service, Avian Brands has established a strategic
                                                                    partnership with BTN. This Memorandum of Understanding
                                                                    signing marks the start of a collaboration that aims to mutually
                                                                    benefit both parties through banking services provision and
                                                                    utilization. Under this cooperation, BTN will recommend
                                                                    Avian Brands’ paint and building materials products to its
                                                                    customers, particularly those engaged in the contractor or
                                                                    developer sector. Meanwhile, Avian Brands will recommend BTN
                                                                    banking products and services to its customers and distributors.

                                                                    This cooperation is intended to reinforce both companies’
                                                                    positions in their respective markets as well as open up new
                                                                    opportunities for product innovation and improved customer
                                                                    service. This synergy showcases the commitment of both Avian
                                                                    Brands and BTN to supporting economic growth by providing
                                                                    comprehensive and efficient solutions in their respective fields.



                                                                                                                                  15
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     PERFORMANCE HIGHLIGHTS




               JUNE 1, 2024

                         Launch of GM 385 Perekat Bata Ringan Ekonomis

                         Avian Brands launched GM 385 Perekat Bata Ringan Ekonomis,
                         a practical and efficient solution for lightweight brick wall
                         installation. This product is designed as a ready-to-use
                         adhesive that offers excellent quality and easy applicability.
                         GM 385 Perekat Bata Ringan Ekonomis is an instant mortar
                         made from the best quality cement, silica sand, filler, additives,
                         and special polymer. All such materials are homogeneously
                         mixed under the highest quality standards, resulting in a
                         sturdy, durable, and economical adhesive. With this superior
                         formulation, this product not only eases the construction
                         process, but also improves time and cost efficiency, making it
                         the right choice for construction professionals.




               JUNE 1, 2024

                         Launch of Pro-X 208

                         Avian Brands launched Pro-X 208, the latest innovation in
                         2-component waterproofing solutions with cutting-edge
                         technology. This product is designed as a 2-component
                         waterproofing based on cement, filler, additives, and Acrylic
                         Copolymer, specifically formulated with Prolastic Technology
                         to offer various advantages such as elastic properties, UV
                         resistance, water resistance, and ease of application. Pro-X 208
                         can be exposed or does not require a topcoat or an outer layer,
                         making it more practical and efficient for various construction
                         needs. This product is perfect for use on decks, balconies,
                         terraces, bathrooms, and swimming pools on concrete, precast,
                         and other cement-based surfaces. With a combination of
                         advanced technology and outstanding performance, Pro-X 208
                         not only provides maximum waterproof protection, but also
                         ensures optimal durability for various types of surfaces.




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                         PT Avia Avian Tbk • 2024 Annual Report




JUNE 3, 2024

         Through inclusion in SRI-KEHATI and ESGSKEHATI Indexes,
         Avian Brands Proves its Sustainable Business Practices

         Avian Brands’ stock, with stock code AVIA, made history through
         its inclusion as a constituent of the SRI-KEHATI Index for the
         period of June 3, 2024, to November 29, 2024, as announced
         by the Indonesia Stock Exchange (IDX) on May 27, 2024.
         The SRI-KEHATI Index includes the 25 best stocks based on
         environmental, social, and governance / “ESG” performance
         assessment, as well as having good liquidity.

         In addition to inclusion in the SRI-KEHATI Index, AVIA shares are
         also included in the ESGSKEHATI Index, which measures stock
         performance based on sustainability aspects with a deeper
         focus on ESG. Avian Brands’ inclusion in these two indexes
         further confirms AVIA as the top choice for investors prioritizing
         sustainable investment principles. Avian Brands is hopeful that
         this achievement will encourage further innovation and
         sustainability, and continue to provide added value to
         stakeholders through responsible business practices.




JUNE 25, 2024

         Avian Brands Securing Two More Global Product Patents

         Avian Brands’ commitment to product innovation is again
         evidenced by obtaining two new global patents. The first patent
         obtained was for “Magnetite Paint (Fe₃O₄)” applied to HomeDeco
         Magnetic product. HomeDeco Magnetic is a water-based paint,
         specifically formulated to produce a coating with magnetic
         attraction on the applied area. An environmentally friendly
         paint product with the Singapore Green Label certification,
         HomeDeco Magnetic is also capable of transforming any surface
         into a magnet-attracting medium.

         The second patent was the “Additive for Accelerating the
         Hardening and Reinforcing of Enhanced Concrete” applied to
         No Drop Plaston product. No Drop Plaston is a concrete additive
         developed with the most advanced technology, which offers
         a more vivid color in concretes, protects structures against
         rust, and accelerates concrete hardening. This results from its
         composition, which reduces water usage in the cement mixture,
         giving it a better density, having a waterproofing effect, and
         making it easier to apply. Both patents reflect Avian Brands’
         determination and commitment to delivering innovative and
         high-quality products.




                                                                       17
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                                      PERFORMANCE HIGHLIGHTS




                                                        AUGUST 1, 2024




Launch of No Drop Beton dan Batu Alam                                  Launch of Avian Non-Sag Epoxy Hemat

Avian Brands launched No Drop Beton dan Batu Alam,                     Avian Brands launched Avian Non-Sag Epoxy Hemat,
an innovative water-based coating formulated with Nano                 an affordable two-component epoxy glue designed to
Particle technology. This product is specifically designed for         bond various types of substrates such as wood, ceramics,
concrete and natural stone, and it works by penetrating deeply         glass, and metal. It has the advantage of being applicable
into the material’s pores without forming a layer that covers          to damp or wet surfaces, thus providing more flexibility.
the surface, thus maintaining the natural look of concrete and         Avian Non-Sag Epoxy Hemat already contains filler, allowing
natural stone. No Drop Beton dan Batu Alam is perfect for              it to be utilized as a putty to seal cracks or damage on the
industrial-style concrete as well as various types of natural stone    substrate. This product offers a practical and economical
such as limestone and palimanan. In addition to providing              solution for customers needing strong and versatile adhesives.
optimal protection, this product is also water-resistant,              With its reliable performance, Avian Non-Sag Epoxy Hemat is
weather-resistant, and able to prevent mold and mildew,                the right choice for various repair applications.
making it the perfect solution for extending the life span of
materials as well as maintaining building aesthetics.




                                                        AUGUST 2, 2024

                                                                      Avian Brands Receiving the 2024 ESG Award
                                                                      as Best Issuer in the Capital Market Sector

                                                                      Avian Brands was honored with the 2024 ESG Award, as
                                                                      the Best Issuer in the Capital Market Sector from Yayasan
                                                                      Keanekaragaman Hayati Indonesia (KEHATI). This accolade
                                                                      affirms Avian Brands’ firm commitment to ESG principles in every
                                                                      aspect of its operations. This honor came after other notable
                                                                      achievements of Avian Brands, i.e., its inclusion in various ESG
                                                                      indexes in the capital market, such as ESG Quality 45 IDX KEHATI
                                                                      (ESGQKEHATI) for the December 2023 to May 2024 period,
                                                                      as well as SRI-KEHATI, ESGSKEHATI, and ESGQKEHATI indexes for
                                                                      the June 2024 to November 2024 period.

                                                                      The judging process for this award considered various factors,
                                                                      such as a high ESG KEHATI score, an improved ESG score
                                                                      compared to the previous period, and Avian Brands’ commitment
                                                                      to ESG-based products and managed funds. This recognition
                                                                      reflects Avian Brands’ determination to implement sustainability
                                                                      initiatives that not only increase value for Shareholders,
                                                                      but also deliver long-term positive impacts for society and the
                                                                      environment.



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                          PT Avia Avian Tbk • 2024 Annual Report




AUGUST 7, 2024

         Avian Brands Receiving the 2024 Katadata ESG Award
         in the Chemicals Sector for the Environment Category

         Avian Brands was honored with the 2024 Katadata ESG Award
         in the Chemicals Sector for the Environment Category. This was
         awarded as a form of appreciation for Avian Brands’ commitment
         to implementing sustainability programs and principles in
         all operational activities. Katadata’s analysis and assessment
         involved industry experts utilizing various data sources of Avian
         Brands, such as the Sustainability Report, ISO certifications, and
         PROPER rating from the Ministry of Environment and Forestry
         (Kementerian Lingkungan Hidup dan Kehutanan or KLHK).
         This recognition further solidifies Avian Brands’ position as
         a leader in the national paint industry that always actively
         implements sustainability principles.

         Through this award, Avian Brands successfully proved that
         sustainability is not just a priority, but also an integral part of
         its business strategy. With a focus on improving operational
         efficiency that is environmentally friendly, Avian Brands
         continues to advance its commitment to environmental
         preservation and social welfare. This achievement is consistent
         with Avian Brands’ commitment to being an environmentally
         and socially responsible company while promoting a national
         sustainability agenda.




SEPTEMBER 1, 2024

         Launch of Supersilk Semi Kilap

         Avian Brands launched Supersilk Semi Kilap, a premium
         interior wall paint that provides a semi-gloss finish, to create
         a smooth and luxurious glossy look on the house walls.
         This product offers exceptional durability, ensuring the walls
         look new and beautiful for a long time. Supersilk Semi Kilap
         also comes with an easy-to-clean feature, ensuring easy daily
         maintenance. This paint also boasts anti-bacterial, anti-mold,
         and anti-mildew properties, keeping a clean and healthy indoor
         environment. With a mix of superior performance and luxury
         aesthetics, Supersilk Semi Kilat is the perfect choice for a more
         luxurious and spacious-looking home.




                                                                        19
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     PERFORMANCE HIGHLIGHTS




               OCTOBER 7, 2024

                         Avian Brands Receiving
                         the 2023 Annual Report Award

                         Avian Brands successfully received the 2023 Annual Report
                         Award, an achievement that highlighted its commitment
                         to transparency and accountability in its Annual Report.
                         This award recognized Avian Brands’ dedication to presenting
                         accurate and comprehensive information that is easily
                         accessible and understandable by stakeholders. Underpinning
                         this award was the consistent effort of the entire Avian Brands’
                         team to implement the best standards for reporting and
                         disclosing Avian Brands’ performance, particularly disclosure
                         of ESG, sustainability, and good corporate governance aspects.
                         Having received the Annual Report Award 2023, Avian Brands
                         is further encouraged to maintain and improve the standards
                         of transparency it has already achieved. Avian Brands is
                         committed to constantly strengthening integrity in every aspect
                         of its operations, which in turn provides added value to all
                         stakeholders.




               NOVEMBER 1, 2024

                         Launch of No Drop Kolam Ikan

                         Avian Brands launched No Drop Kolam Ikan, a practical paint for
                         fishponds designed to address customers’ needs for easy-to-use,
                         safe, and durable pond coatings. No Drop Kolam Ikan comes
                         as a ready-to-use one-component solution, allowing for more
                         practical and efficient use. With a special formulation that prevents
                         leakage and contains no cement, this product protects the beauty
                         of the fishpond without risk of leaking, ensuring maximum
                         protection and safety for the aquatic ecosystem and the fish in it.
                         No Drop Kolam Ikan is ideal for customers looking for an optimal
                         finish with a simple application process. This product is designed
                         to be highly water resistant, keeping the pool in excellent
                         condition despite constant exposure to water. As a water-based
                         paint that has been certified with the Singapore Green Label,
                         No Drop Kolam Ikan is highly safe for all kinds of fish.




               NOVEMBER 1, 2024

                         Launch of GM 265 Acian Abu-abu Ekonomis

                         Avian Brands launched GM 265 Acian Abu-Abu Ekonomis,
                         a practical and efficient solution for leveling and polishing the
                         surface of plastered or concrete walls. This product is designed
                         as a ready-to-use, gray-colored instant skim coat for interior and
                         exterior use, prior to painting or wallpaper installation stage.
                         GM 265 Acian Abu-Abu Ekonomis is an instant cement based on
                         cement, filler, additives, and special polymer, homogeneously
                         mixed to produce a flat and smooth wall surface ready for finishing.
                         With its high-quality formulation, this product not only speeds up
                         the working process, but also provides a neat and durable finish.




20
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                          PT Avia Avian Tbk • 2024 Annual Report




NOVEMBER 1, 2024

         Launch of GM 275 Acian Putih Ekonomis

         Avian Brands launched GM 275 Acian Putih Ekonomis,
         a practical and efficient solution for leveling and polishing the
         surface of plastered or concrete walls. This product is designed
         as a ready-to-use, white-colored instant skim coat for interior
         and exterior use, prior to painting or wallpaper installation.
         GM 275 Acian Putih Ekonomis is an instant cement based on
         cement, filler, additives, and special polymer, homogeneously
         mixed to produce a flat and smooth surface ready for finishing.
         With its high-quality formulation, this product not only speeds up
         the working process, but also provides a neat and durable finish.




NOVEMBER 6, 2024

         Avian Brands’ Inclusion in Forbes
         “200 Best Under A Billion 2024” List

         Avian Brands was included in the Forbes “200 Best Under
         A Billion 2024” list, a prestigious award that recognizes exceptional
         performance of small and medium-sized public companies in the
         Asia-Pacific region. With the award license valid for 12 months,
         from November 6, 2024, to November 6, 2025, this achievement
         is a true testament to Avian Brands’ resilience amidst dynamic
         and uncertain global economic challenges. The Forbes “200 Best
         Under A Billion 2024” is awarded to companies having less than
         US$1 billion in revenues, but capable of showing impressive
         performance in terms of growth, profitability, and business
         potential. This award confirms Avian Brands’ strong competitive
         edge in the international market as well as its commitment to
         continuously deliver outstanding performance that supports
         sustainable growth.




NOVEMBER 25, 2024

         Avian Brands Receiving the
         Top 50 Big Capitalization Public Listed Company Award

         Avian Brands was honored with the Top 50 Big Capitalization
         Public Listed Company award from the Indonesian Institute
         for Corporate Directorship (“IICD”) as an appreciation for its
         large market capitalization and successful implementation of
         outstanding Good Corporate Governance (“GCG”) practices.
         This achievement reflects a high level of investors’ and
         stakeholders’ trust in Avian Brands’ performance, business
         prospects, and commitment to transparent and accountable
         governance.

         This results from consistent implementation of business
         strategies and GCG principles to support sustainable growth.
         This award further motivates Avian Brands to maintain its
         position as a public company with a large market capitalization
         that has comprehensively implemented GCG to contribute to
         the national economy.




                                                                          21
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                                   PERFORMANCE HIGHLIGHTS




                                                   DECEMBER 1, 2024




Launch of Supersilk Basic                                          Launch of Avian Cat Lapangan

Avian Brands launched Supersilk Basic, a premium interior          Avian Brands launched Avian Cat Lapangan, a multi-purpose
wall paint designed to meet the customers’ needs for               floor paint product specifically designed to meet various
more affordable premium products. With the Super-Cover             needs of painting floor surfaces. This product can be applied
Technology innovation, Supersilk Basic presents a paint color      to sports fields, parking lots, and various types of surfaces
solution that prevents streaks, providing the perfect finish       made from cement, asphalt, and concrete substrates.
with an ultra matt appearance. This ensures more elegant and       With its superior formulation, Avian Cat Lapangan provides
durable interior walls while ensuring customer satisfaction by     a long-lasting and aesthetically pleasing finish, while also
creating a comfortable and aesthetically pleasing space.           ensuring optimal durability under various usage conditions.
                                                                   This product is the ideal solution for creating a professional and
                                                                   functional surface appearance, certified by the International
                                                                   Tennis Federation making it the perfect choice for both
                                                                   commercial and personal use.


                                                    DECEMBER 3, 2024

                                                                 Avian Brands Receiving the Green Industry Leader Award
                                                                 at the 2024 Green Future Summit

                                                                 Avian Brands received the Green Industry Leader award from
                                                                 Sun Energy at the 2024 Green Future Summit. This was awarded
                                                                 in recognition of Avian Brands’ success in adopting sustainability
                                                                 principles in every aspect of its operations. As part of its
                                                                 long-term commitment to sustainable development,
                                                                 Avian Brands has integrated environmentally friendly practices
                                                                 into its business processes, from energy efficiency, waste
                                                                 management, to green product development. These measures
                                                                 not only strengthen operational performance, but also bring
                                                                 about tangible positive impacts on the environment and society.
                                                                 This honor serves as a recognition of Avian Brands’ dedication to
                                                                 consistently carrying out its environmental responsibilities.



                                                   DECEMBER 31, 2024

                                                                 Avian Brands’ Continued Expansion of
                                                                 Distribution Networks in Various Regions in Indonesia

                                                                 Avian Brands expanded the reach of its national distribution
                                                                 networks by increasing the number of its wholly-owned
                                                                 distribution centers to 124, located in 34 provinces and 98 cities
                                                                 in Indonesia, as well as 15 mini-distribution centers located
                                                                 in several cities. The distribution centers are operated by two
                                                                 subsidiaries, namely PT Tirtakencana Tatawarna (“TKTW”) and
                                                                 PT Tirtakencana Batamindo (“TKBI”).



22
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                                                                                   PT Avia Avian Tbk • 2024 Annual Report




Awards and Certifications

       AWARDS

   1                              2                                   3                                    4




2024 ESG Award as               2024 Katadata Environmental,        Appreciation for Avian Brands’       2023 Annual Report Award
Best Issuer in the              Social, & Governance Award          Initiatives in Promoting Blood
Capital Market Sector           (“KESGI”)                           Donation in 2023
                                ESG Award in the Chemicals Sector   Ninth (IX) Highest Blood Donation
                                for the Environment Category        (308 Blood Bags)
Organizer:                      Organizer:                          Organizer:                           Organizer:
Yayasan Keanekaragaman Hayati   Katadata                            Indonesia Red Cross of               National Committee on
Indonesia (“KEHATI”)            Recipient:                          Sidoarjo Regency                     Governance Policy
Recipient:                      PT Avia Avian Tbk                   Recipient:                           (Komite Nasional Kebijakan
PT Avia Avian Tbk                                                   PT Avia Avian Tbk                    Governansi or “KNKG”)
                                Period:
Period:                         2024                                Period:                              Recipient:
2024                                                                2024                                 PT Avia Avian Tbk
                                                                                                         Period:
                                                                                                         2024



  5                               6                                   7                                    8




Forbes “200 Best Under          National PROPER                     Top 50 Big Capitalization            Green Industry Leader
A Billion 2024”                 Green Rating                        Public Listed Company                at the 2024 Green Future Summit


Organizer:                      Organizer:                          Organizer:                           Organizer:
Forbes                          Ministry of Environment and         Indonesian Institute for Corporate   Sun Energy
Recipient:                      Forestry of the Republic of         Directorship (“IICD”)                Recipient:
PT Avia Avian Tbk               Indonesia                           Recipient:                           PT Avia Avian Tbk
Period:                         Recipient:                          PT Avia Avian Tbk                    Period:
2024                            PT Avia Avian Tbk                   Period:                              2024
                                Period:                             2024
                                2023 - 2024




                                                                                                                                      23
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                                                                                                                                                                                                                               PERFORMANCE HIGHLIGHTS




  CERTIFICATION


International Standardization Organization (“ISO”)
The ISO certification is an international standard used to assess and recognize Avian Brands’ management systems in
various sectors. This certification reflects Avian Brands’ commitment to operating with the principles of efficiency, quality,
sustainability and safety. By obtaining the ISO certifications in several key areas, Avian Brands ensures implementation of
best practices that comply with global standards, thus supporting Avian Brands’ performance in creating a safe, efficient
and sustainable work environment. By the end of 2024, Avian Brands had obtained 5 ISO certifications in several areas,
as described below:

                                                                                                    Name of Certification                                                                                                                                                                                                                                                                                                                                                                                                                         Organizer                                                                                                                                                                                                      Validity Period
 ISO 14001:2015 on Environmental Management System 1                                                                                                                                                                                                                                                                                                                                                                                                            PT Lloyd’s Register Indonesia                                                                                                                                                                                                                                                                 Until February 18, 2025
 ISO 50001:2018 on Energy Management System 2                                                                                                                                                                                                                                                                                                                                                                                                                   PT Lloyd’s Register Indonesia                                                                                                                                                                                                                                                                  Until March 2, 2025
 ISO/IEC 27001:2013 on Information Security
                                                                                                                                                                                                                                                                                                                                                                                                                                                                Intertek Certification Limited                                                                                                                                                                                                                                                                Until October 31, 2025
 Management System 3
 ISO 9001:2015 on Quality Management System 4                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             LRQA Limited                                                                                                                                                                                                        Until February 27, 2027
 ISO 45001:2018 on Occupational Health and
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          LRQA Limited                                                                                                                                                                                                        Until October 26, 2027
 Safety Management System 5




  1                                                                                                                                                                                                                                                                                                                                                                              2                                                                                                                                                                                                                                                                                                                                                                    3
                                                                     Current issue date:              19 February 2022                  Original approval(s):                                                                                                                                                                                                                                                                                    Current Issue Date:              3 March 2022                      Original approval(s):
                                                                     Expiry date:                     18 February 2025                  ISO 14001 - 19 February 2013                                                                                                                                                                                                                                                                             Expiry Date:                     2 March 2025                      ISO 50001 - 3 March 2022
                                                                     Certificate identity number:     10424288                                                                                                                                                                                                                                                                                                                                   Certificate Identity Number:     10430998




         Certificate of Approval                                                                                                                                                                                                                                                                                                                                                     Certificate of Approval
         This is to certify that the Management System of:                                                                                                                                                                                                                                                                                                                           This is to certify that the Management System of:


         PT Avia Avian Tbk                                                                                                                                                                                                                                                                                                                                                           PT Avia Avian Tbk
         Jl Raya Surabaya-Sidoarjo Km 19, Desa Wadungasih, Buduran Sidoarjo, East Java, Indonesia                                                                                                                                                                                                                                                                                    Jl Raya Surabaya-Sidoarjo Km.19, Desa Wadungasih Buduran Sidoarjo, East Java, 61252, Indonesia



         has been approved by LRQA to the following standards:                                                                                                                                                                                                                                                                                                                       has been approved by LRQA to the following standards:

         ISO 14001:2015                                                                                                                                                                                                                                                                                                                                                              ISO 50001:2018
         Approval number(s): ISO 14001 – 00053962                                                                                                                                                                                                                                                                                                                                    Approval Number(s): ISO 50001 – 00035106

                                                                                                                                                                                                                                                                                                                                                                                     This certificate is valid only in association with the certificate schedule bearing the same number on which the locations applicable
                                                                                                                                                                                                                                                                                                                                                                                     to this approval are listed.
         The scope of this approval is applicable to:

         Manufacture of paint and resin including can making and mortar product.                                                                                                                                                                                                                                                                                                     The scope of this approval is applicable to:

                                                                                                                                                                                                                                                                                                                                                                                     Manufacture of paint and resin including can making and mortar product.




         Luis Cunha                                                                                                                                                                                                                                                                                                                                                                  Luis Cunha

         ________________________                                                                                                                                                                                                                                                                                                                                                    ________________________
         Area Operations Manager - SAMEA                                                                                                                                                                                                                                                                                                                                             Area Operations Manager - SAMEA

         Issued by: PT. Lloyd's Register Indonesia                                                                                                                                                                                                                                                                                                                                   Issued by: PT. Lloyd's Register Indonesia

         for and on behalf of: LRQA Limited                                                                                                                                                                                                                                                                                                                                          for and on behalf of: LRQA Limited

         LRQA Group Limited, its affiliates and subsidiaries and their respective officers, employees or agents are, individually and collectively, referred to in this clause as 'LRQA'.                                                                                                                                                                                            LRQA Group Limited, its affiliates and subsidiaries and their respective officers, employees or agents are, individually and collectively, referred to in this clause as 'LRQA'.
         LRQA assumes no responsibility and shall not be liable to any person for any loss, damage or expense caused by reliance on the information or advice in this document or                                                                                                                                                                                                    LRQA assumes no responsibility and shall not be liable to any person for any loss, damage or expense caused by reliance on the information or advice in this document or
         howsoever provided, unless that person has signed a contract with the relevant LRQA entity for the provision of this information or advice and in that case any responsibility or                                                                                                                                                                                           howsoever provided, unless that person has signed a contract with the relevant LRQA entity for the provision of this information or advice and in that case any responsibility or
         liability is exclusively on the terms and conditions set out in that contract.                                                                                                                                                                                                                                                                                              liability is exclusively on the terms and conditions set out in that contract.
         Issued by: PT. Lloyd's Register Indonesia, LRQA Indonesia, Dea Tower 1 12th Floor, Kawasan Mega Kuningan, Jl. Mega Kuningan Barat IX Kav. E4.3 No.1, Jakarta 12950,                                                                                                                                                                                                         Issued by: PT. Lloyd's Register Indonesia, LRQA Indonesia, Dea Tower 1 12th Floor, Kawasan Mega Kuningan, Jl. Mega Kuningan Barat IX Kav. E4.3 No.1, Jakarta 12950,
         Indonesia for and on behalf of: LRQA Limited, 1 Trinity Park, Bickenhill Lane, Birmingham B37 7ES, United Kingdom                                                                                                                                                                                                                                                           Indonesia for and on behalf of: LRQA Limited, 1 Trinity Park, Bickenhill Lane, Birmingham B37 7ES, United Kingdom
                                                                                                                                                                            Page 1 of 1                                                                                                                                                                                                                                                                                                                                                                 Page 1 of 2




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Page 1 of 2
                                                                                                                                                                            Page 1 of 1                                                                                                                                                                                              Indonesia for and on behalf of: LRQA Limited, 1 Trinity Park, Bickenhill Lane, Birmingham B37 7ES, United Kingdom
         Indonesia for and on behalf of: LRQA Limited, 1 Trinity Park, Bickenhill Lane, Birmingham B37 7ES, United Kingdom                                                                                                                                                                                                                                                           Issued by: PT. Lloyd's Register Indonesia, LRQA Indonesia, Dea Tower 1 12th Floor, Kawasan Mega Kuningan, Jl. Mega Kuningan Barat IX Kav. E4.3 No.1, Jakarta 12950,
         Issued by: PT. Lloyd's Register Indonesia, LRQA Indonesia, Dea Tower 1 12th Floor, Kawasan Mega Kuningan, Jl. Mega Kuningan Barat IX Kav. E4.3 No.1, Jakarta 12950,                                                                                                                                                                                                         liability is exclusively on the terms and conditions set out in that contract.
         liability is exclusively on the terms and conditions set out in that contract.                                                                                                                                                                                                                                                                                              howsoever provided, unless that person has signed a contract with the relevant LRQA entity for the provision of this information or advice and in that case any responsibility or
         howsoever provided, unless that person has signed a contract with the relevant LRQA entity for the provision of this information or advice and in that case any responsibility or                                                                                                                                                                                           LRQA assumes no responsibility and shall not be liable to any person for any loss, damage or expense caused by reliance on the information or advice in this document or
         LRQA assumes no responsibility and shall not be liable to any person for any loss, damage or expense caused by reliance on the information or advice in this document or                                                                                                                                                                                                    LRQA Group Limited, its affiliates and subsidiaries and their respective officers, employees or agents are, individually and collectively, referred to in this clause as 'LRQA'.
         LRQA Group Limited, its affiliates and subsidiaries and their respective officers, employees or agents are, individually and collectively, referred to in this clause as 'LRQA'.

                                                                                                                                                                                                                                                                                                                                                                                     for and on behalf of: LRQA Limited
         for and on behalf of: LRQA Limited
                                                                                                                                                                                                                                                                                                                                                                                     Issued by: PT. Lloyd's Register Indonesia
         Issued by: PT. Lloyd's Register Indonesia
                                                                                                                                                                                                                                                                                                                                                                                     Area Operations Manager - SAMEA
         Area Operations Manager - SAMEA
                                                                                                                                                                                                                                                                                                                                                                                     ________________________
         ________________________
                                                                                                                                                                                                                                                                                                                                                                                     Luis Cunha
         Luis Cunha




                                                                                                                                                                               4                                                                                                                                                                                                                                                                                                                                                                                5
                                                                                                                                                                                                                                                                                                                                                                                     Manufacture of paint and resin including can making and mortar product.

                                                                                                                                                                                                                                                                                                                                                                                     The scope of this approval is applicable to:
         Manufacture of paint and resin including can making and mortar product.

         The scope of this approval is applicable to:                                                                                                                                                                                                                                                                                                                                to this approval are listed.
                                                                                                                                                                                                                                                                                                                                                                                     This certificate is valid only in association with the certificate schedule bearing the same number on which the locations applicable


                                                                                                                                                                                                                                                                                                                                                                                     Approval Number(s): ISO 50001 – 00035106
         Approval number(s): ISO 14001 – 00053962
                                                                                                                                                                                                                                                                                                                                                                                     ISO 50001:2018
         ISO 14001:2015
                                                                                                                                                                                                                                                                                                                                                                                     has been approved by LRQA to the following standards:
         has been approved by LRQA to the following standards:


                                                                                                                                                                                                                                                                                                                                                                                     Jl Raya Surabaya-Sidoarjo Km.19, Desa Wadungasih Buduran Sidoarjo, East Java, 61252, Indonesia
         Jl Raya Surabaya-Sidoarjo Km 19, Desa Wadungasih, Buduran Sidoarjo, East Java, Indonesia



         PT Avia Avian Tbk                                                                                                                                                                                                                                                                                                                                                           PT Avia Avian Tbk
                                                                                                                                                                                                                                                         Current issue date:              28 February 2024                  Original approval(s):                                                                                                                                                                                                                                                                                     Current issue date:              27 October 2024                   Original approval(s):
                                                                                                                                                                                                                                                         Expiry date:                     27 February 2027                  ISO 9001 - 28 February 2007                                                                                                                                                                                                                                                                               Expiry date:                     26 October 2027                   ISO 45001 - 5 November 2020
                                                                                                                                                                                                                                                         Certificate identity number:     10582361                                                                                   This is to certify that the Management System of:                                                                                                                                                                                                Certificate identity number:     10639949
         This is to certify that the Management System of:



         Certificate of Approval                                                                                                                                                                                                                                                                                                                                                     Certificate of Approval
                                                                                                                                                                                             Certificate of Approval                                                                                                                                                                                                                                                                                                                                                      Certificate of Approval
                                                                                                                                                                                                                                                                                                                                                                                                                                                 Certificate Identity Number:     10430998
                                                                     Certificate identity number:     10424288                                                                               This is to certify that the Management System of:                                                                                                                                                                                                   Expiry Date:                     2 March 2025                      ISO 50001 - 3 March 2022                              This is to certify that the Management System of:
                                                                     Expiry date:                     18 February 2025                  ISO 14001 - 19 February 2013                                                                                                                                                                                                                                                                             Current Issue Date:              3 March 2022                      Original approval(s):


                                                                                                                                                                                             PT Avia Avian Tbk                                                                                                                                                                                                                                                                                                                                                            PT Avia Avian Tbk
                                                                     Current issue date:              19 February 2022                  Original approval(s):




                                                                                                                                                                                             Jl Raya Surabaya-Sidoarjo Km 19, Desa Wadungasih, Buduran Sidoarjo, East Java, Indonesia                                                                                                                                                                                                                                                                                     Jl Raya Surabaya-Sidoarjo Km 19, Desa Wadungasih, Buduran Sidoarjo, East Java, Indonesia



                                                                                                                                                                                             has been approved by LRQA to the following standards:                                                                                                                                                                                                                                                                                                                        has been approved by LRQA to the following standards:

                                                                                                                                                                                             ISO 9001:2015                                                                                                                                                                                                                                                                                                                                                                ISO 45001:2018
                                                                                                                                                                                             Approval number(s): ISO 9001 – 0044727                                                                                                                                                                                                                                                                                                                                       Approval number(s): ISO 45001 – 0044850

                                                                                                                                                                                             This certificate is valid only in association with the certificate schedule bearing the same number on which the locations applicable                                                                                                                                                                                                                                        This certificate is valid only in association with the certificate schedule bearing the same number on which the locations applicable
                                                                                                                                                                                             to this approval are listed.                                                                                                                                                                                                                                                                                                                                                 to this approval are listed.


                                                                                                                                                                                             The scope of this approval is applicable to:                                                                                                                                                                                                                                                                                                                                 The scope of this approval is applicable to:

                                                                                                                                                                                             Manufacture of paint, resin, can making and mortar product.                                                                                                                                                                                                                                                                                                                  Manufacture of paint and resin including can making and mortar product.




                                                                                                                                                                                             Luis Cunha                                                                                                                                                                                                                                                                                                                                                                   Luis Cunha

                                                                                                                                                                                             ________________________                                                                                                                                                                                                                                                                                                                                                     ________________________
                                                                                                                                                                                             Area Operations Manager - North Asia & SAMEA                                                                                                                                                                                                                                                                                                                                 Area Operations Manager - North Asia & SAMEA

                                                                                                                                                                                             Issued by: LRQA Limited                                                                                                                                                                                                                                                                                                                                                      Issued by: LRQA Limited


                                                                                                                                                                                             LRQA Group Limited, its affiliates and subsidiaries and their respective officers, employees or agents are, individually and collectively, referred to in this clause as 'LRQA'.                                                                                                                                                                                             LRQA Group Limited, its affiliates and subsidiaries and their respective officers, employees or agents are, individually and collectively, referred to in this clause as 'LRQA'.
                                                                                                                                                                                             LRQA assumes no responsibility and shall not be liable to any person for any loss, damage or expense caused by reliance on the information or advice in this document or                                                                                                                                                                                                     LRQA assumes no responsibility and shall not be liable to any person for any loss, damage or expense caused by reliance on the information or advice in this document or
                                                                                                                                                                                             howsoever provided, unless that person has signed a contract with the relevant LRQA entity for the provision of this information or advice and in that case any responsibility or                                                                                                                                                                                            howsoever provided, unless that person has signed a contract with the relevant LRQA entity for the provision of this information or advice and in that case any responsibility or
                                                                                                                                                                                             liability is exclusively on the terms and conditions set out in that contract.                                                                                                                                                                                                                                                                                               liability is exclusively on the terms and conditions set out in that contract.
                                                                                                                                                                                             Issued by: LRQA Limited, 1 Trinity Park, Bickenhill Lane, Birmingham B37 7ES, United Kingdom                                                                                                                                                                                                                                                                                 Issued by: LRQA Limited, 1 Trinity Park, Bickenhill Lane, Birmingham B37 7ES, United Kingdom
                                                                                                                                                                                                                                                                                                                                                                Page 1 of 2                                                                                                                                                                                                                                                                                                                                                                  Page 1 of 2




                                                                                                                                                                                                                                                                                                                                                                Page 1 of 2                                                                                                                                                                                                                                                                                                                                                                   Page 1 of 2
                                                                                                                                                                                             Issued by: LRQA Limited, 1 Trinity Park, Bickenhill Lane, Birmingham B37 7ES, United Kingdom                                                                                                                                                                                                                                                                                Issued by: LRQA Limited, 1 Trinity Park, Bickenhill Lane, Birmingham B37 7ES, United Kingdom
                                                                                                                                                                                             liability is exclusively on the terms and conditions set out in that contract.                                                                                                                                                                                                                                                                                              liability is exclusively on the terms and conditions set out in that contract.
                                                                                                                                                                                             howsoever provided, unless that person has signed a contract with the relevant LRQA entity for the provision of this information or advice and in that case any responsibility or                                                                                                                                                                                           howsoever provided, unless that person has signed a contract with the relevant LRQA entity for the provision of this information or advice and in that case any responsibility or
                                                                                                                                                                                             LRQA assumes no responsibility and shall not be liable to any person for any loss, damage or expense caused by reliance on the information or advice in this document or                                                                                                                                                                                                    LRQA assumes no responsibility and shall not be liable to any person for any loss, damage or expense caused by reliance on the information or advice in this document or
                                                                                                                                                                                             LRQA Group Limited, its affiliates and subsidiaries and their respective officers, employees or agents are, individually and collectively, referred to in this clause as 'LRQA'.                                                                                                                                                                                            LRQA Group Limited, its affiliates and subsidiaries and their respective officers, employees or agents are, individually and collectively, referred to in this clause as 'LRQA'.



                                                                                                                                                                                             Issued by: LRQA Limited                                                                                                                                                                                                                                                                                                                                                     Issued by: LRQA Limited
                                                                                                                                                                                             Area Operations Manager - North Asia & SAMEA                                                                                                                                                                                                                                                                                                                                Area Operations Manager - North Asia & SAMEA
                                                                                                                                                                                             ________________________                                                                                                                                                                                                                                                                                                                                                    ________________________
                                                                                                                                                                                             Luis Cunha                                                                                                                                                                                                                                                                                                                                                                  Luis Cunha




                                                                                                                                                                                             Manufacture of paint, resin, can making and mortar product.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Manufacture of paint, resin, can making and mortar product.
                                                                                                                                                                                             The scope of this approval is applicable to:
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         The scope of this approval is applicable to:

                                                                                                                                                                                             to this approval are listed.
                                                                                                                                                                                             This certificate is valid only in association with the certificate schedule bearing the same number on which the locations applicable                                                                                                                                                                                                                                       to this approval are listed.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         This certificate is valid only in association with the certificate schedule bearing the same number on which the locations applicable
                                                                                                                                                                                             Approval number(s): ISO 9001 – 0044727
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Approval number(s): ISO 9001 – 0044727
                                                                                                                                                                                             ISO 9001:2015
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         ISO 9001:2015
                                                                                                                                                                                             has been approved by LRQA to the following standards:
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         has been approved by LRQA to the following standards:


                                                                                                                                                                                             Jl Raya Surabaya-Sidoarjo Km 19, Desa Wadungasih, Buduran Sidoarjo, East Java, Indonesia




24
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Jl Raya Surabaya-Sidoarjo Km 19, Desa Wadungasih, Buduran Sidoarjo, East Java, Indonesia

                                                                                                                                                                                             PT Avia Avian Tbk                                                                                                                                                                                                                                                                                                                                                           PT Avia Avian Tbk
                                                                                                                                                                                             This is to certify that the Management System of:
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         This is to certify that the Management System of:


                                                                                                                                                                                             Certificate of Approval                                                                                                                                                                                                                                                                                                                                                     Certificate of Approval

                                                                                                                                                                                                                                                         Certificate identity number:     10582361
                                                                                                                                                                                                                                                         Expiry date:                     27 February 2027                  ISO 9001 - 28 February 2007
                                                                                                                                                                                                                                                         Current issue date:              28 February 2024                  Original approval(s):                                                                                                                                                                                                                                                                                    Certificate identity number:      10582361
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Expiry date:                      27 February 2027                  ISO 9001 - 28 February 2007
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Current issue date:               28 February 2024                  Original approval(s):
Page 27
                                                                                 PT Avia Avian Tbk • 2024 Annual Report




Indonesian National Standard (“SNI”)
The SNI is a standard applied in Indonesia to ensure quality, safety and performance of manufactured products,
in accordance with applicable requirements. The SNI certification reflects Avian Brands’ commitment to delivering
high-quality products that not only comply with national quality standards, but are also competitive in a wider market. With
this certification, Avian Brands continues to solidify its position in the domestic market, while simultaneously promoting the
achievement of better standards of quality in every product offered. By the end of 2024, Avian Brands had obtained 2 SNI
standards for 7 products, as described below:

 Name of Certification          Product              Type                   Organizer                        Validity Period

 SNI 3564:2014 1          Sunguard                 Exterior   Chempack Product Certification Institute
                                                              of the Center for Standardization, and
                          Aquamatt, Aries                     Servicesof Chemical, Pharmaceutical and    Until November 3, 2026
 SNI 3564:2014 2          Gold, Avitex, Everglo,   Interior   Packaging Industry, Ministry of Industry
                          Supersilk, and No Odor              of the Republic of Indonesia




           1                                                              2




                                                                                                                               25
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                                      PERFORMANCE HIGHLIGHTS




Singapore Green Label (“GLS”)

The GLS certification is a recognition for environmentally friendly products that are assessed through strict processes in
various aspects, from environmentally friendly requirements for end users, to consideration of the entire product life cycle by
means of life cycle analysis. This certification is a testament to Avian Brands’ commitment to manufacturing environmentally
friendly products that are safe for customers. This widely recognized certification lends credibility through international
accreditation and ensures that Avian Brands’ products comply with stringent sustainability standards. In addition to opening
up new market opportunities, this certification also brings competitive advantages, reduces environmental impact, and
improves production efficiency, while simultaneously saving costs. Among Avian Brands’ flagship products that have
obtained GLS certification are those of the Avitex series, and by the end of 2024, a total of 34 Avian Brands’ products are
GLS-certified, as described below:



                    Product                               Organizer                              Validity Period
 Avitex Alkali Resisting Primer 1               Singapore Environment Council                 Until January 18, 2025
 Avitex Wizz 2                                  Singapore Environment Council                  Until March 22, 2025
 Brilliant Exterior 3                           Singapore Environment Council                   Until June 13, 2025
 No Drop Basic 4                                Singapore Environment Council                   Until June 13, 2025
 Avitex Emulsion 5                              Singapore Environment Council                   Until June 13, 2025
 Brilliant Cat Tembok Interior 6                Singapore Environment Council                   Until July 18, 2025
 Sunguard 7                                     Singapore Environment Council                Until November 24, 2025
 Everglo 8                                      Singapore Environment Council                Until November 24, 2025
 Supersilk 9                                    Singapore Environment Council                Until November 24, 2025
 Avitex Dapur & Kamar Mandi 10                  Singapore Environment Council                Until November 24, 2025
 Aquamatt 11                                    Singapore Environment Council                Until November 24, 2025
 Lenkote Alkali Resisting Primer 12             Singapore Environment Council                Until November 24, 2025
 No Odor 13                                     Singapore Environment Council                Until November 24, 2025
 Supersilk Semi Kilap 14                        Singapore Environment Council                Until November 24, 2025
 No Drop Anti Panas 15                          Singapore Environment Council                Until December 22, 2025
 Avitex Gold 16                                 Singapore Environment Council                Until December 22, 2025
 Avitex 4 Kids 17                               Singapore Environment Council                 Until February 26, 2026
 Everglo Kids Care 18                           Singapore Environment Council                 Until February 26, 2026
 Avian Cat Lapangan Waterbase 19                Singapore Environment Council                  Until March 19, 2026
 No Drop Beton dan Batu Alam 20                 Singapore Environment Council                  Until March 19, 2026
 No Drop Kolam Ikan 21                          Singapore Environment Council                  Until March 19, 2026
 Supersilk Anti-Noda 22                         Singapore Environment Council                   Until May 29, 2026
 Lenkote Home Deco Metallic Paint Gold 23       Singapore Environment Council                   Until July 24, 2026
 Sunguard All-In-One 24                         Singapore Environment Council                  Until August 7, 2026
 Avitex Anti Viruz 25                           Singapore Environment Council                  Until August 19, 2026
 Home Deco Glow In The Dark Interior Paint 26   Singapore Environment Council                  Until August 19, 2026
 Home Deco Magnetic Interior Paint 27           Singapore Environment Council                  Until August 19, 2026
 Supersilk Basic 28                             Singapore Environment Council                Until September 2, 2026
 Home Deco Glitz 29                             Singapore Environment Council                Until September 9, 2026
 Wood Eco Woodstain Water Based 30              Singapore Environment Council                 Until November 9, 2026
 Avitex Eksterior 31                            Singapore Environment Council                 Until November 9, 2026

 Boyo Special Politur Vernis Water Based 32     Singapore Environment Council                 Until November 9, 2026
 No Lumut Water-Based 33                        Singapore Environment Council                 Until November 9, 2026
 Avitex One Coat 34                             Singapore Environment Council                Until December 21, 2026




26
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                                                                               PT Avia Avian Tbk • 2024 Annual Report




                PT. Avia Avian
 Jl. Raya Surabaya – Sidoarjo Km 19, Desa Wadung Asih,
        Buduran, Sidoarjo 61252, Indonesia



AVITEX ALKALI RESISTING PRIMER
                   032-219-4089
           Environmentally Preferred Paint
 (In accordance to SEC Green Label Category 32: Paints and Surface Coatings)

            Validity: 19 January 2023 to 18 January 2025




            Validity: 19 January 2023 to 18 January 2025

 (In accordance to SEC Green Label Category 32: Paints and Surface Coatings)


           Environmentally Preferred Paint
                   032-219-4089
AVITEX ALKALI RESISTING PRIMER

        Buduran, Sidoarjo 61252, Indonesia
 Jl. Raya Surabaya – Sidoarjo Km 19, Desa Wadung Asih,
                PT. Avia Avian




                                                                                                                        27
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                                        PERFORMANCE HIGHLIGHTS




Domestic Component Level (Tingkat Komponen Dalam Negeri or “TKDN”)

The TKDN certification is a recognition of products that utilize domestic components and raw materials, helping
to empower domestic industries and national economic independence. Avian Brands remains committed to
obtaining this certification as part of its sustainability strategy and contribution to domestic economic development.
Among its flagship products that have obtained TKDN certification is the Sunguard All-In-One, which prides itself on high
quality with predominantly domestic components. In total, by the end of 2024, 36 Avian Brands’ products have successfully
obtained TKDN certification as described below:




                  Product                                      Organizer                             Validity Period
 Aries Gold 1                                Ministry of Industry of the Republic of Indonesia   Until September 15, 2026
 Avian Cat Aluminium 2                       Ministry of Industry of the Republic of Indonesia   Until September 15, 2026
 Avian Cat kayu dan Besi 3                   Ministry of Industry of the Republic of Indonesia   Until September 15, 2026
 Avitex Alkali Resisting Primer 4            Ministry of Industry of the Republic of Indonesia   Until September 15, 2026
 Avitex Anti Viruz 5                         Ministry of Industry of the Republic of Indonesia   Until September 15, 2026
 Avitex Cat Genteng & Seng 6                 Ministry of Industry of the Republic of Indonesia   Until September 15, 2026
 Avitex Eksterior 7                          Ministry of Industry of the Republic of Indonesia   Until September 15, 2026
 Avitex Plamir Tembok 8                      Ministry of Industry of the Republic of Indonesia   Until September 15, 2026
 Avitex 9                                    Ministry of Industry of the Republic of Indonesia   Until September 15, 2026
 Boyo Politur Vernis Solvent Based 10        Ministry of Industry of the Republic of Indonesia   Until September 15, 2026
 Lenkote Wall Sealer 11                      Ministry of Industry of the Republic of Indonesia   Until September 15, 2026
 No Drop Anti Panas 12                       Ministry of Industry of the Republic of Indonesia   Until September 15, 2026
 No Drop 13                                  Ministry of Industry of the Republic of Indonesia   Until September 15, 2026
 No Odor Medicare 14                         Ministry of Industry of the Republic of Indonesia   Until September 15, 2026
 Supersilk Anti Noda 15                      Ministry of Industry of the Republic of Indonesia   Until September 15, 2026
 Suzuka Cat Duco Otomotif 16                 Ministry of Industry of the Republic of Indonesia   Until September 15, 2026
 Avian Paving Paint 17                       Ministry of Industry of the Republic of Indonesia    Until October 19, 2026
 Avian Roadline Paint 18                     Ministry of Industry of the Republic of Indonesia    Until October 19, 2026
 Avitex Gold 19                              Ministry of Industry of the Republic of Indonesia    Until October 19, 2026
 Sunguard All-In-One 20                      Ministry of Industry of the Republic of Indonesia    Until October 19, 2026
 Sunguard 21                                 Ministry of Industry of the Republic of Indonesia    Until October 19, 2026
 Supersilk 22                                Ministry of Industry of the Republic of Indonesia    Until October 19, 2026
 Cat Besi Anti Karat Avian 3 in 1 23         Ministry of Industry of the Republic of Indonesia      Until July 12, 2027
 GM 420 Perekat Keramik Ekonomis 24          Ministry of Industry of the Republic of Indonesia   Until September 4, 2027
 GM 510 Tile Grout 25                        Ministry of Industry of the Republic of Indonesia   Until September 4, 2027
 No Drop Mortar Anti Bocor 26                Ministry of Industry of the Republic of Indonesia   Until September 4, 2027
 Avia Thinner Lacquer A Special 27           Ministry of Industry of the Republic of Indonesia   Until September 4, 2027
 Avian Thinner B Asli 28                     Ministry of Industry of the Republic of Indonesia   Until September 4, 2027
 Pro-X 207 29                                Ministry of Industry of the Republic of Indonesia   Until September 5, 2027
 GM 270 Acian Putih 30                       Ministry of Industry of the Republic of Indonesia   Until September 5, 2027
 GM 380 Perekat Bata Ringan 31               Ministry of Industry of the Republic of Indonesia   Until September 5, 2027
 Avian Cling Water Based 32                  Ministry of Industry of the Republic of Indonesia   Until November 18, 2027
 Avitex Wizz 33                              Ministry of Industry of the Republic of Indonesia   Until November 18, 2027
 Avian Cling Synthetic 34                    Ministry of Industry of the Republic of Indonesia   Until November 18, 2027
 Avian Cling Zinc Chromate 35                Ministry of Industry of the Republic of Indonesia   Until November 18, 2027
 Avian Zinc Chromate 36                      Ministry of Industry of the Republic of Indonesia   Until November 18, 2027




28
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PT Avia Avian Tbk • 2024 Annual Report




                                         29
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                                  PERFORMANCE HIGHLIGHTS




Other Certifications

In addition to obtaining ISO, SNI, GLS, and TKDN certifications, Avian Brands has also obtained the Green Industry
Certificate from the Green Industry Certification Institute of the Center for Standardization and Services of Chemical,
Pharmaceutical, and Packaging Industry, Ministry of Industry of the Republic of Indonesia. This is given in recognition
of Avian Brands’ efforts in implementing sustainability principles in industrial processes, from energy efficiency
to resource management and reduction of environmental impacts. This Green Industry Certificate is valid until
September 7, 2026, confirming Avian Brands’ commitment to continuously innovate and improve environmental performance
in all operational activities, in line with the objective to support the development of environmentally friendly industries in
Indonesia.




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PT Avia Avian Tbk • 2024 Annual Report




                                         31
Page 34
32
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   PT Avia Avian Tbk • 2024 Annual Report




Management
    Report




                                            33
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                                   MANAGEMENT REPORT




The Board of Commissioners
Report
   “With immense pride, we appreciate the positive achievements made by Avian Brands in 2024.
    Amidst the constantly evolving challenges, the Board of Directors has successfully implemented various
    strategic initiatives that have not only boosted operational performance, but also strengthened Avian Brands’
    position in the market. The success in both the operational and financial results of Avian Brands is a testament
    to our commitment to sustainability and innovation. In addition, the accolades received throughout 2024
    further reaffirm that Avian Brands is on the right track to achieve its long-term vision, and we are confident
    that the Board of Directors will continue to maintain this positive momentum to achieve a better and more
    sustainable future.”



Dear Valued Shareholders and Stakeholders,
Praise and gratitude to God Almighty, for the accomplishments of Avian Brands throughout 2024. This year, we observed how
global and national economic dynamics remained uncertain, due to geopolitical dynamics contributing to global economic
slowdown. Despite these challenges, we appreciate the steps taken by the Board of Directors, that further consolidated
Avian Brands’ position as a pioneer in sustainable product innovation that positively impacts the environment and the
communities. Under the visionary leadership of the Board of Directors, we saw how Avian Brands was able to overcome
challenges with well-planned strategies, ensure sustainable growth, and solidify its position in the national paint industry.
This success is a true testament to the collaboration and commitment of all elements of Avian Brands to keep pushing forward
and deliver innovative solutions relevant to the needs of an ever-changing world.



Economic Conditions in 2024

The year 2024 was marked by challenging global economic dynamics, with projected global economic growth stagnant at
3.2%. Persisting geopolitical tensions, supply chain disruptions caused by regional conflicts, and the slowdown in China’s
property sector have been the most prominent factors that inhibited the global growth rate, while continued volatility
in financial markets heightened uncertainty among investors and economic actors. On the other hand, the Asian region,
particularly its emerging markets, demonstrated encouraging performance thanks to investments in the technology sector,
particularly artificial intelligence, driving demand for semiconductors and electronic products.

On the national level, we observe that Indonesia’s economy remained fairly resilient with economic growth reaching 5.03%.
This was driven by strong domestic consumption, stable investment, and the completion of the National Strategic Projects
(Proyek Strategis Nasional or “PSN”). Household consumption was also projected to grow thanks to maintained consumer
confidence, whereas government consumption also contributed to higher spending at the end of the year. In terms of sectors,
we believe that the manufacturing and trade sectors have been the main pillars of national economic growth.



Supervision on Formulation and Implementation of Strategies

In light of the unfolding economic and industry developments throughout the year, we continuously carry out rigorous
supervision on the formulation and implementation of the strategies pursued by the Board of Directors. This is to ensure
that the measures taken are in line with the Vision and Mission of Avian Brands, and contribute to achieving long-term goals.
We also periodically evaluate the strategic plans formulated by the Board of Directors, taking into account market dynamics,
industry trends, and economic conditions that may affect the performance of Avian Brands. In addition to financial aspects,
this also includes supervision of sustainability and innovation implemented in products and services, which are integral to the
development strategy of Avian Brands.




34
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   PT Avia Avian Tbk • 2024 Annual Report




      HERMANTO TANOKO
• President Commissioner of PT Avia Avian Tbk



                                            35
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                                   MANAGEMENT REPORT




We are fully supportive of the Board of Directors’ move to increase the manufacturing capacity of Avian Brands through
the construction of the Water-Based Plant in Cirebon, aimed at improving operational efficiency and promoting
sustainable growth. We also appreciate the addition of Green Label products that aim to expand the portfolio of
environmentally friendly products, which is in line with the increasing trend of sustainability-oriented market demand.
Additionally, we support the launch of new products to complement our product portfolio and meet the needs of the
communities. We view these strategies as highly excellent, in line with the Board of Directors’ consistent efforts to expand the
number of Distribution Centers (DCs), which will expand the distribution network and support more optimal growth in the
domestic market. We believe that these strategies will strengthen Avian Brands’ market position, ensure business sustainability,
and deliver significant added value to all stakeholders.



Frequency and Method of Provision of Advice to the Board of Directors of Avian Brands

We continuously monitor the effectiveness of the Board of Directors’ strategy implementation and actively provide input
through various forums, one of which is the Joint Meeting of the Board of Commissioners and the Board of Directors.
These meetings are held regularly, but input can be provided more intensively depending on situations that require
deeper attention, such as market changes or strategic developments that demand swift and precise decision-making.
Our input focuses on various aspects, including business strategy, risk management, Avian Brands’ sustainability,
as well as operational and financial performance improvements. This approach enables us to provide a broader perspective
and assist the Board of Directors in formulating policies and making decisions that enhance the competitiveness and growth
of Avian Brands. Every input we provide consistently prioritizes Avian Brands’ long-term interests and business sustainability,
grounded in the principles of integrity and professionalism.



Assessment of the Performance of the Board of Directors

Based on the results of the supervision that we have carried      We also appreciate the solid financial achievements,
out, we appreciate the Board of Directors’ performance            with positive net revenues and profit for the year,
throughout 2024 in pursuing various business targets              driven by positive growth in the architectural solutions and
that had been set. We observe that Avian Brands has               trading goods segments. Prudent management of the cost
managed to deliver positive results, despite the challenges.      of goods sold and operational efficiency implemented by the
We assess that the manufacturing output of Avian Brands           Board of Directors have contributed to the improved profit
has met the target, with a major contribution from the            margin. Additionally, numerous awards received by Avian
Sidoarjo Plant, reflecting the Board of Directors’ ability to     Brands throughout 2024 further emphasized recognition
lead the operation efficiently and effectively. In addition,      for its outstanding performance and constant dedication.
the launch of 15 new products and the increase in the             As the Board of Commissioners, we completely support
number of environmentally friendly products certified with        the steps taken by the Board of Directors and are confident
Singapore Green Label further emphasized Avian Brands’            that these achievements will form a solid foundation for
commitment to innovation and sustainability, which is in          sustainable growth in the future.
line with industry trends and market expectations.



Outlook on Business Prospects

Considering the business prospects of Avian Brands going forward, we are optimistic that the strategic measures to be
taken by the Board of Directors can optimally drive the growth and sustainability of Avian Brands. We fully support the
Board of Directors’ initiatives to continuously optimize the use of advanced technology for manufacturing efficiency
in order to increase productivity and reduce operating expenses. We view this measure positively, as it is in line with the
programs to develop modern laboratories and to increase the number of chemists to support product innovation and
ensure that Avian Brands stays ahead in the market. In addition, we support the efforts to improve supply chain quality,
which will strengthen operational stability and improve our response to market demand. We also applaud the consistency
of Avian Brands in making ESG principles the basis of its operations. The integration of ESG in every aspect of Avian Brands’
operations will continue to have a positive impact on environmental and social sustainability, while strengthening our
reputation and stakeholder trust.




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                                                                               PT Avia Avian Tbk • 2024 Annual Report




With the 2025 macroeconomic outlook showing a more moderate but stable growth trend, we believe these measures will
ensure that Avian Brands remains competitive, adaptive to market changes, and able to achieve its long-term goals.



Views on the Implementation of Good Corporate Governance

We appreciate the Board of Directors’ consistency in implementing Good Corporate Governance (”GCG”) in all operational
aspects of Avian Brands as an integral part of its long-term strategies. We believe that implementing GCG not only
improves operational effectiveness and efficiency but also strengthens the trust of all stakeholders, including Shareholders,
business partners, and customers.

This view is inseparable from the results of our meticulous supervision of the policies adopted by the Board of Directors,
to ensure that every decision taken always considers the long-term interests of Avian Brands and its stakeholders.
We also provide advice and recommendations on continuous improvement in implementing GCG principles, particularly
in terms of risk management, legal compliance, and supervising the implementation of sustainability-related policies.
We believe that by continuously improving GCG implementation, Avian Brands will be better prepared to overcome future
challenges and maintain sustainability while generating maximum added value for all parties involved.



Views on the Implementation of Social and Environmental Responsibility

In line with the foregoing, we also appreciate the               As the Board of Commissioners, we continue to supervise
commitment of Avian Brands to implementing social and            and provide direction to ensure that all sustainability
environmental responsibility in a consistent and sustainable     programs not only fulfill social obligations but also
manner. We observe how the Board of Directors not only           provide sustainable impacts on the communities and the
focuses on achieving financial performance but also actively     environment. We believe well-implemented social and
contributes to the welfare of the communities and the            environmental responsibility will strengthen Avian Brands’
preservation of the environment. The implementation of           relationship with stakeholders and build a positive image.
sustainability programs by Avian Brands has led to various       By continuously integrating social and environmental
initiatives, such as environmental impact reduction,             aspects into every strategic decision, we believe that
efforts to improve diversity and inclusion, and social           Avian Brands will be better equipped to create long-term
assistance to the surrounding communities through the            value that is not only good for business but also for the
Avian Brands Peduli program. We see this as a positive step      wider community and environmental sustainability.
manifested by Avian Brands, which is in line with supporting
the achievement of the Sustainable Development Goals
(“SDGs”).


Changes in the Composition of the Board of Commissioners

As of 2024, there was no change to the composition of the Board of Commissioners of Avian Brands. The composition of
the current Board of Commissioners is described as follows:


                            Name                                                       Appointment

 Hermanto Tanoko                                                                  President Commissioner
 Mohammad Noor Rachman Soejoeti                                                  Independent Commissioner


The current composition of the Board of Commissioners has a term of office until the 2026 Annual General Meeting
of Shareholders.




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                                   MANAGEMENT REPORT




Conclusion

In concluding this report, we would like to extend our highest appreciation and gratitude to all stakeholders for their continued
support of Avian Brands’ growth and achievements. We value the strong collaboration between the Board of Directors,
employees, Shareholders, customers, suppliers, and other stakeholders who have worked tirelessly together to realize the
Vision and Mission of Avian Brands. We also express our gratitude to the community and all related parties for their trust in
Avian Brands, which has enabled us to continue growing and evolving despite various challenges.

We firmly believe that with shared commitment and a spirit of collaboration, Avian Brands will continue to move forward and
achieve its long-term goals. We hope that the support given thus far will continue, fostering greater sustainability not only for
Avian Brands but also for the wider community and environment.




                                        On behalf of the Board of Commissioners of
                                                   PT Avia Avian Tbk,




                                                  Hermanto Tanoko
                                                  President Commissioner




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PT Avia Avian Tbk • 2024 Annual Report




                                         39
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                                   MANAGEMENT REPORT




The Board of Directors
Report
   “The year 2024 marks a significant milestone in Avian Brands’ journey as we navigate the challenges in
    this dynamic industry while demonstrating resilience and adaptability as a leading player in the national
    paint industry. By focusing on sustainable innovation, operational efficiency, and strengthening the
    business ecosystem, we continue to move forward in creating a more sustainable and colorful future.
    The unwavering support from all stakeholders remains the key driving force behind every step we take,
    in order to meet market demands and achieve sustainable growth.”




Dear Valued Shareholders and Stakeholders,
All praise and gratitude to God Almighty for His blessings and grace bestowed upon Avian Brands throughout
2024, a year marked by various challenges. However, these challenges did not discourage us, as we successfully led
Avian Brands to record strong performance and demonstrate resilience in navigating the volatile market dynamics.
The year 2024 also marks Avian Brands’ continued commitment to move forward with a greater purpose, which is to create a
sustainable and colorful future. Beyond developing more innovative and environmentally friendly products and services, we
are also determined to strengthen our commitment to generating positive value for stakeholders, the communities, and the
environment. We believe that a more sustainable future is the key to achieving balanced growth, not just for Avian Brands but
also for everyone.

Avian Brands’ journey in achieving these accomplishments is summarized as follows.



Economic and Industrial Conditions in 2024

The year 2024 was packed with complex economic dynamics, both at the global and the national level. Globally, the economy
was projected to experience a slowdown with moderate growth of around 3.2%, lower than the pre-pandemic growth rate.
Persistent geopolitical tensions, supply chain disruptions, and financial market uncertainty were the main challenges looming
over the global economy. Moreover, tensions in several regions have heightened global market volatilities, causing more
uncertainty for investors and industry players alike. On the other hand, while global inflation was predicted to fall to 5.2%
in 2024, inflationary pressures remained high in certain sectors, such as services and energy, affecting consumer purchasing
power and increasing operating expenses for many businesses. Despite stabilization efforts, the risks of surging commodity
prices due to geopolitical tensions or natural disasters remained a threat to global economic resilience.

On the national level, Indonesia faced similar challenges, with global economic uncertainty affecting the domestic
economy. Nevertheless, the national economy growth still demonstrated resilience, with a growth achievement of 5.03%.
At 2.26%, inflation was relatively manageable in 2024, but it remained challenging, particularly for the consumer and
distribution sectors. Changes in global policies also affected international trade and investment markets, necessitating greater
domestic economic resilience. However, despite these challenges, various industry sectors continued to exhibit promising
growth opportunities, giving grounds for long-term optimism.

In 2024, the manufacturing sector reasserted its role as the backbone of the national economy. Data revealed that this
sector was the biggest contributor to the Gross Domestic Product (“GDP”). However, the dynamics of the manufacturing
industry were not without their challenges. Fluctuating raw material availability, pressure on production costs due to
energy price volatility, and the need to meet global sustainability standards were among the crucial issues. We are aware
that these challenges demand precision in strategic planning and execution, but with a focus on innovation and efficiency,
we believe that Avian Brands can continue to grow and adapt to the existing conditions.




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 PT Avia Avian Tbk • 2024 Annual Report




       WIJONO TANOKO
• President Director of PT Avia Avian Tbk



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                                   MANAGEMENT REPORT




Challenges and Obstacles Faced and Main Strategies
to Drive Business Growth

Global economic uncertainty and its impact on the                 These Singapore Green Label-certified products are
domestic economy served as a backdrop that we had                 designed to offer more sustainable solutions while still
to face with utmost resilience and resourcefulness.               emphasizing quality and functionality.
Amidst dynamic market fluctuations and evolving market
preferences, we believe adaptability and innovation are key       In addition, we saw tremendous opportunities to meet
to survival and growth. These challenges have motivated           the increasingly diverse needs of the customers, realized
us to focus more on strategic measures that can lead to           through the launch of new products. We have thoughtfully
sustainable growth and generate positive impacts for all          crafted these products through extensive research to meet
stakeholders.                                                     the evolving challenges and needs of the communities.
                                                                  Each new product launch is expected to generate positive
One major step we have taken was the construction of the          impacts for the customers and give us a competitive edge
Water-Based Plant in Cirebon, an investment that we believe       in this increasingly fierce market. No less important is the
will be a significant milestone in Avian Brands’ journey          ability to swiftly and efficiently reach the market, which
toward greater manufacturing efficiency and capacity.             we recognize as a key factor to successful distribution.
More than just increasing capacity, this plant also               Therefore, we have expanded our distribution networks
embodies our commitment to sustainability. With more              by establishing new Distribution Centers (“DC”). The new
environmentally friendly manufacturing technology, we             distribution centers not only accelerate product distribution,
aim to produce high-quality products with minimized               but are also part of our efforts to enhance operational
environmental impacts, thus responding to market                  efficiency and ensure the best service for customers across
demands that increasingly emphasize the principles of             Indonesia. With stronger infrastructure in place, we believe
green manufacturing.                                              we are well-placed to deal with evolving challenges within
                                                                  the domestic market.
We also recognize the need to continuously innovate in
order to stay relevant in the market. Hence, we continue          These strategic measures are part of our journey towards
to expand our portfolio of products certified with                a more sustainable and colorful future. We believe that by
Singapore Green Label, as part of the efforts to expand our       continuously innovating, adapting, and giving our best to
environmentally friendly product portfolio. This initiative       the communities and the environment, Avian Brands will be
is more than just a strategic move, but a responsibility          able to overcome every challenge and achieve stronger and
to meet the expectations of customers who are                     more sustainable growth.
increasingly concerned with environmental sustainability.



Roles of the Board of Directors in the Formulation and
Implementation of Avian Brands’ Strategies

As an integral part of Avian Brands’ management, the Board of Directors plays a vital role in formulating and implementing
strategies that steer Avian Brands toward its long-term goals. In formulating these strategies, the Board of Directors not only
considers market and economic conditions but also upholds Avian Brands’ Vision and Mission, which focus on sustainability
and innovation. Every decision is based on a deep understanding of industry trends, market dynamics, and customer needs
and expectations, all of which are aligned with the strategic objectives to create long-term value.

Moreover, in implementing the formulated strategies, the Board of Directors is responsible for ensuring that every operational
step taken aligns with the GCG principles, maintains efficiency, and remains results-oriented. This process includes
overseeing the execution of various strategic initiatives and continuously measuring performance, to ensure all initiatives
proceed as planned and generate positive impacts. The Board of Directors also maintains continuous communication with
the Board of Commissioners to seek input and guidance, enriching perspectives in formulating and evaluating strategic
policies. The Board of Directors’ role in ensuring the effective implementation of Avian Brands’ strategies is highly crucial,
as it not only influences short-term performance but also determines long-term success that contributes to the sustainability
and stable growth of Avian Brands.




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                                                                               PT Avia Avian Tbk • 2024 Annual Report




Achievements and Business Target                                 Business Prospects

The year 2024 was a testament to the commitment and              As we step into 2025, we acknowledge that the world and
hard work of all elements of Avian Brands in responding to       the economy will continue to evolve. We believe there is
the global economy and industry dynamics. This year, the         an air of optimism amidst persisting global uncertainties,
manufacturing output of Avian Brands reached 197,339             geopolitical tensions, and market volatility. A more moderate
metric tons, equivalent to 95.00% of the established target,     and steady economic projection poses a challenge that
an increase compared to the 180,540 metric tons recorded         we must overcome with alertness and adaptability.
in the previous year. Of such total output, the Sidoarjo         However, within these challenges, we also see plenty of
Plant remained the key pillar with 69,91% contribution,          opportunities that we can tap into. In the domestic market,
while the remaining 30.09% came from the Serang Plant.           we are optimistic about gaining recovery momentum,
This success was further complemented by the launch of           further strengthening Avian Brands’ position amidst the
15 new products that strengthened Avian Brands’ product          competitive national paint industry.
portfolio in the market, affirming our position as a pioneer
of innovation. In addition, the strategic move to expand         To maximize these opportunities, we have formulated
the number of environmentally friendly products certified        a series of strategic initiatives that we believe will lead
by Singapore Green Label has yielded tangible results, with      Avian Brands toward a brighter future. One of the key steps
a total of 34 certified products this year, up from 29 in the    is to leverage the most advanced technology to enhance
previous year. This achievement reflects our commitment          production efficiency. In a world increasingly driven by
to keep promoting sustainability through environmentally         digitization and automation, we believe technology is the
friendly product innovations.                                    key to improving operational efficiency. By integrating
                                                                 cutting-edge technology, we not only aim to reduce
On the financial side, Avian Brands managed to record net        production costs but also ensure that our products maintain
revenues of IDR7,471.36 billion, or 95.50% of the 2024 target,   a competitive edge in the market. However, technology
with a growth of 6.48% compared to the previous year’s net       alone is not enough. We are also committed to developing
revenues of IDR7,016.88 billion. This growth was fueled          a modern laboratory and strengthening Avian Brands’
by the architectural solutions segment, which recorded           existing team of expert chemists. We believe innovation
a growth of 4.09%, and the trading goods segment, with           remains the key to staying relevant in an ever-evolving
a growth of 16.07%. Cost of goods sold was also recorded         market. With more sophisticated research and development
at IDR4,130.61 billion, an increase of 7.75% compared            facilities supported by highly skilled experts, Avian Brands
to IDR3,833.55 billion in 2023. The ongoing economic             will continue to create innovative new products that meet
recovery has compelled us to adopt a more aggressive             customer needs while maintaining the highest quality
approach to marketing and sales efforts. While, maintaining      standards.
our focus on efficiency measures. With this strategy,
we successfully recorded a profit for the year 2024, reaching    Supply chain quality also remains one of our top priorities.
IDR 1,663.70 billion, equivalent to 95.84% of the target,        Quality improvement of the supply chain will serve as a
marking a 1.25% increase compared to the previous year’s         key pillar in ensuring that Avian Brands’ operations run
net profit of IDR 1,643.10 billion.                              smoothly and that our products reach customers on time.
                                                                 We strive to optimize every single node within Avian Brands’
This achievement was further complemented by the                 supply chain, foster strong relationships with suppliers,
numerous awards we have received throughout the year,            and ensure that all processes are carried out efficiently
a testament to the positive recognition from various             and transparently. But more than that, we believe that
stakeholders for our constant dedication and innovation.         Avian Brands’ success is not just about the numbers, but
Among the awards we have proudly received, were the              also about how responsibly we conduct our business.
2024 ESG Award as the Best Issuer in the Capital Market          This belief drives us to integrate ESG principles as the
Sector from Yayasan Keanekaragaman Hayati Indonesia              foundation of Avian Brands’ operations. With a firm
(“KEHATI”), the 2024 ESG Award in the Chemicals Sector for       commitment to environmental sustainability, social
the Environment Category from Katadata, the Recognition          responsibility, and transparent governance, we aim to
for Initiative in Organizing Blood Donation in 2023 from         ensure that every step taken by Avian Brands has a positive
the Indonesian Red Cross of Sidoarjo Regency, the 2023           impact on communities and the environment.
Annual Report Award from the KNKG, inclusion in Forbes’
“200 Best Under A Billion 2024” list, PROPER National Green
Rating from the Ministry of Environment and Forestry of
the Republic of Indonesia, Top 50 Big Capitalization Public
Listed Company from the Indonesian Institute for Corporate
Directorship, as well as Green Industry Leader in the 2024
Green Future Summit from Sun Energy.


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                                   MANAGEMENT REPORT




We are optimistic that these initiatives will serve as a solid foundation for success in 2025 and beyond. Together, with
unwavering focus and determination, we will continue to innovate, grow, and deliver the best for all stakeholders.



Implementation of Good Corporate Governance

As a continuously growing company committed to                   No less important is the risk management system, as an
delivering the best for all stakeholders, GCG implementation     integral part of our efforts to ensure business viability.
serves as a fundamental pillar guiding Avian Brands.             We understand that risk is an inevitable part of every
We understand that in pursuit of sustainability and long-        business aspect, whether it is general risk, business and
term growth, every step we take must adhere to the               industry specific risk, or financial risk. Therefore, we have
pillars of ethical conduct, accountability, transparency,        established a holistic risk management system that enables
and sustainability. We firmly believe that a comprehensive       us to identify, assess, and manage risks in a proactive manner.
implementation of GCG not only enhances Avian Brands’            Through a structured, data-driven approach, we can ensure
performance but also ensures that every decision aligns          that existing risks are effectively managed and do not hinder
with stakeholder expectations and applicable regulations.        Avian Brands in achieving its objectives.

In this implementation, we continuously strengthen our           The implementation of good governance, effective
internal control system as the backbone for maintaining          internal control systems, and sound risk management are
operational integrity and efficiency. This system ensures        important foundations and pillars we consider essential
that all activities of Avian Brands adhere to established        to maintaining the credibility and performance of Avian
policies and procedures while identifying and mitigating         Brands. With this solid foundation, we are confident in our
potential irregularities. Through rigorous internal controls,    ability to achieve sustainable growth, meet stakeholder
we can minimize the risk of errors or fraud that could be        expectations, and adapt to the ever-evolving market and
detrimental to Avian Brands, while ensuring transparent and      business environment.
accountable Financial Reports.



Implementation of Social and Environmental Responsibility

In line with our commitment to GCG implementation, our           community welfare in our operational areas also remains
commitment to being a responsible company is consistently        a key social responsibility initiative for Avian Brands.
manifested through initiatives that integrate social and         We implement various CSR programs through Avian Brands
environmental responsibility across all operational aspects.     Peduli, aimed at providing direct benefits to communities
We recognize that Avian Brands’ success is not solely            through education, environmental improvements, economic
measured by financial performance but also by the positive       empowerment, and support for vulnerable groups.
impacts we create for the communities and the environment.
Therefore, social and environmental responsibility has           We also remain firmly committed to environmental
become an integral part of our strategies that guide every       sustainability. Our sustainability initiatives not only
decision we make.                                                enhance operational efficiency but also focus on reducing
                                                                 the environmental impact of Avian Brands’ activities.
In terms of social responsibility, we focus on improving         We continuously improve the implementation of
employee welfare through competence development                  environmentally friendly principles in our manufacturing
programs, ongoing training, and the provision of facilities      processes, including reducing the use of hazardous chemicals
that support the OHS. We believe that employees are the          and replacing them with more environmentally friendly
most valuable asset of Avian Brands, making it our priority      alternatives. In addition, we actively implement recycling
to create a safe, healthy, and productive work environment.      programs, waste management, and carbon emission
Additionally, we strengthen relationships with local suppliers   reduction to support better environmental management.
through strategic collaborations aimed at ensuring supply        We have also sustainably conducted tree-planting programs
chain sustainability, enhancing their capacity, and driving      to reduce our carbon footprint and provide long-term
economic growth. In line with the foregoing, improving           benefits to local communities and ecosystems.




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                                                                                PT Avia Avian Tbk • 2024 Annual Report




We believe that the fulfillment of sustainable social and environmental responsibility not only creates positive impacts on
the communities and the environment but also strengthens the reputation and sustainability of Avian Brands. Through these
initiatives, we are committed to contributing to the achievement of the Sustainable Development Goals and ensuring that
every step we take supports the creation of a better and more sustainable future.



Changes in the Composition of the Board of Directors

As of 2024, there was no change to the composition of the Board of Directors of Avian Brands. The composition of the current
Board of Directors is described as follows:

                            Name                                                        Appointment

 Wijono Tanoko                                                                         President Director
 Ruslan Tanoko                                                                       Vice President Director
 Robert Christian Tanoko                                                                    Director
 Kurnia Hadi Sinanto                                                                        Director
 Angelica Tanisia Jozar                                                                     Director


The current composition of the Board of Directors has a term of office until the 2026 Annual General Meeting of Shareholders.



Conclusion

As a closing remark, we would like to extend our deepest appreciation to all stakeholders who have accompanied Avian Brands
on this journey thus far. Our gratitude goes to the Board of Commissioners for their strategic guidance, prudent oversight,
and constructive insights in ensuring that Avian Brands remains on the right path to achieving its Vision and Mission.
We also extend our appreciation to all employees whose dedication, hard work, and spirit of innovation drive every achievement
we attain. To our Shareholders, we are grateful for their unwavering support, trust, and commitment, which continue to
motivate us to continuously deliver long-term values.

To our loyal customers, thank you for your trust in Avian Brands’ products and services, which motivates us to consistently
deliver excellence. Our appreciation also goes to our business partners, suppliers, and other key stakeholders who play an
essential role in supporting our supply chain and ensuring the smooth operations of Avian Brands. With the support and active
contributions of all stakeholders, we are confident that Avian Brands will continue to grow, make a positive impact, and create
a better future for all.




                                            On behalf of the Board of Directors of
                                                    PT Avia Avian Tbk,




                                                     Wijono Tanoko
                                                      President Director




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              PT Avia Avian Tbk • 2024 Annual Report




          Company
            Profile



   “As the national paint industry leader,
       Avian Brands is capable of offering
          a wide selection of high-quality
  products to meet diverse market needs
    with more than 2,500 products (SKU).
     These products are available in more
     than 58,400 number of retail outlets
   supplied across Indonesia. To support
 distribution efficiency, Avian Brands has
  124 wholly-owned distribution centers,
      15 mini-distribution centers, and 38
        independent distribution centers.
This extensive distribution infrastructure
 ensures that Avian Brands’ products are
   widely available and easily accessible,
    guaranteeing fast and timely delivery
                  to all parts of Indonesia.”


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                            COMPANY PROFILE




Company
Identity



                                          PT Avia Avian Tbk



                                                 Headquarter
                                        Jl. Raya Surabaya – Sidoarjo KM. 19
                                  Desa Wadungasih, Kec. Buduran, Sidoarjo 61252
                                               Jawa Timur, Indonesia



                                                           Business Sector
                                                           Manufacture and trade of paints and printing inks,
                                                           varnishes, lacquers, adhesives or glues, mortar or
                                                           ready-mixed concrete.
     corsec@avianbrands.com
     investor.relations@avianbrands.com                    Date of Establishment
                                                           March 1, 1983

                                                           Authorized Capital
     (62-31) 8968000    www.avianbrands.com                IDR2,000,000,000,000.-
                                                           Issued and Paid-up Capital

     Social Media                                          IDR619,535,556,000.-
                                                           Legal Basis of Establishment
                                                           PT Avia Avian was established based on Deed of
                                                           Establishment of Limited Liability Company No. 06
                                                           dated March 1, 1983, as amended by Deed No. 63 dated
     Avian Brands                                          May 23, 1983, both drawn up before Indrawati
                                                           Setiabudhi, S.H., a Notary in Malang. The deed has
                                                           been approved by the Minister of Justice of the
                                                           Republic of Indonesia by the Resolution of the Ministry
                                                           of Justice of the Republic of Indonesia with Decree
     avian.brands       @avianbrands                       No. C2-4948.HT01.01 Th83 dated July 5, 1983 and
                                                           has been registered with the Malang District Court
                                                           No. 016/PP/PI/VIII/1983 dated August 8, 1983.




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                                                                        PT Avia Avian Tbk • 2024 Annual Report




    Shareholding                                        Branch Office
                                                        Avian Brands Building
                                                        Jl. Ahmad Yani No. 317
                                                        Surabaya 60234
                                                        Jawa Timur, Indonesia
                                                          (62-31) 99850500/99850600


                                                        Address of Manufacturing Facilities
                                                        Sidoarjo
                                                        Jl. Raya Surabaya – Sidoarjo KM. 19
                                                        Desa Wadungasih, Kec. Buduran
                                                        Sidoarjo 61252
                                                        Jawa Timur, Indonesia
      PT Tancorp Surya Sentosa         : 36.60%
                                                          (62-31) 8968000
      PT Wahana Lancar Rejeki          : 32.49%
      Archipelago Investment Pte Ltd   : 6.30%          Serang
      Robert Christian Tanoko          : 2.30%
                                                        Jl. Raya Serang KM. 60
      Rudi Tanoko                      : 1.68%
                                                        Kawasan Pancatama 5 Kav. 50
      Rony Tanoko                      : 0.80%
                                                        Leuwilimus, Leuwi Limus, Cikande
      Treasury Stock                   : 1.88%
                                                        Kabupaten Serang 42186
      Public (each below 5%)           : 17.95%
                                                        Banten, Indonesia
                                                          (62-254) 402655


Stock Code
AVIA
Listing of Shares on the Stock Exchange
December 8, 2021
on the Indonesia Stock Exchange

Total Employees
(Including Employees of Subsidiaries and Outsourced
Employees)
  Male:
  7,263 Employees
  Female:
  2,124 Employees
Latest Deed Amendment
The latest amendment to Avian Brands’ deed is Deed
No. 4 dated April 13, 2023 drawn up before
Dr. Susanti S.H., M.Kn., a Notary in Surabaya City
regarding Amendment to the Articles of Association of
PT Avia Avian Tbk. This change has been notified to
the Ministry of Law and Human Rights of the Republic
of Indonesia based on the Letter of Acceptance of
Notification of Changes to Articles of Association
No. AHU-AH.01.03-0054560 dated April 14, 2023.




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                                     COMPANY PROFILE




Milestones
                                                                     2000
 1978
                                                                     • The third generation of Mr. Soetikno Tanoko’s family became
 Avian Brands’ business was initiated in 1978 by                       involved in Avian Brands’ business and Mr. Soetikno Tanoko’s
 Mr. Soetikno Tanoko in Sidoarjo, East Java, focusing on the           eldest grandson, Vice President Director of Avian Brands,
 production of wood and metal paint products.                          Mr. Ruslan Tanoko, who is the son of Mr. Wijono Tanoko,
                                                                       President Director of Avian Brands, became involved in the
                                                                       sales and marketing department of Avian Brands; and
 1981                                                                • Avian Brands established PT Tirtakencana Tatawarna,
 Avian Brands launched its first venture into wall paint products      a Subsidiary, as a distribution company that focuses on setting
 under the “Avitex” brand.                                             up distribution centers across Indonesia.


 1983
                                                                     2005
 Avian Brands was established in 1983 as an integrated
 paint manufacturing company. The second generation of               Avian Brands expanded its paint product offerings into
 Mr. Soetikno Tanoko’s family became involved in Avian Brands’       waterproofing paint under the “No Drop” brand. By the end of
 business, and his eldest son, Mr. Wijono Tanoko, serving as         2005, Avian Brands had also successfully expanded its presence
 President Director and his youngest son, Mr. Hermanto Tanoko,       across 20 locations in Indonesia through its distribution
 serving as President Commissioner joined Avian Brands in 1983.      company, PT Tirtakencana Tatawarna.



 1985                                                                2006
 Avian Brands continued to expand its product range in the           Avian Brands was awarded the certification of ISO 9001:2000
 paint category to automotive refinish paint, including top coats,   on Quality Management System.
 primers, and spray paints.


 1986                                                                2009
 Avian Brands strategically focused on vertical integration          • Mr. Robert Christian Tanoko, another third-generation
 and commenced the manufacturing of resin as raw material              family member of Mr. Soetikno Tanoko, became involved
 following the purchase of three reactors from Korea.                  in Avian Brands’ operations. Mr. Robert Christian Tanoko
                                                                       served as Avian Brands’ Director and is the son of the
 1987                                                                  President Commissioner, Mr. Hermanto Tanoko;
                                                                     • Avian Brands successfully attained the certification of
 Avian Brands purchased 60,000m2 of land near its manufacturing        OHSAS 18001:2007 on Occupational Health and Safety
 facility in Sidoarjo to expand the manufacturing facility and         Management System; and
 build additional warehouses..                                       • Through its Subsidiary, PT Tirtakencana Tatawarna,
                                                                       Avian Brands expanded its distribution reach to 48
                                                                       distribution centers across Indonesia.
 1992
 Avian Brands invested in a metal can factory located at the
 manufacturing facility in Sidoarjo to address the shortage of       2010
 metal cans from suppliers.                                          • Avian Brands adopted a point-of-sale tinting model and
                                                                       deployed tinting machines for retail customers, providing
 1996                                                                  thousands of color options;
                                                                     • Avian Brands upgraded its quality management certification
 Avian Brands established a second manufacturing facility              to ISO 9001:2008 on Quality Management System; and
 in Serang, West Java, Indonesia, to strengthen its product          • Avian Brands established PT Tirtakencana Batamindo,
 penetration and distribution capabilities to the western region       a Subsidiary, as a distribution company focused on
 of Indonesia.                                                         establishing distribution centers in Batam.




 1978 - 1996                                                         2000 - 2010



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                                                                                PT Avia Avian Tbk • 2024 Annual Report




                                                                   2018
                                                                   • To commemorate its 40th anniversary, Avian Brands moved
                                                                     into the newly constructed twenty-story headquarters
                                                                     in Surabaya. As a testament to its passion for innovation,
                                                                     the new headquarters is uniquely designed with curves and
2011
                                                                     twists, where each floor rotates and twists by 60 degrees from
Avian Brands expanded its product offerings into the                 the ground floor to the top of the tower.
instant cement product category. Avian Brands completed
the construction of an instant cement plant located at the
manufacturing facility in Sidoarjo and commenced the sales of      2019
instant cement products in the market under its “Giant Mortar”
brand.                                                             • Avian Brands developed and launched “Avitex One Coat” paint
                                                                     and was awarded the first patent for Avitex’s one coat paint
                                                                     technology, which requires only one coat of paint instead of
2012
                                                                     the usual two coats;
• Avian Brands was awarded the certification of ISO 14001:2005     • Avian Brands successfully increased its distribution network to
  on Environmental Management System, as part of its efforts         90 distribution centers across Indonesia through a Subsidiary,
  to improve environmental performance and reduce waste;             PT Tirtakencana Tatawarna; and
  and                                                              • Avian Brands entered into a non-exclusive license agreement
• Through a Subsidiary, PT Tirtakencana Tatawarna,                   with PT Walt Disney Indonesia to use certain Disney logos,
  Avian Brands continued to expand its distribution network to       characters, and trademarks for its wall paint products such as
  55 distribution centers across Indonesia.                          interior wall paint and special effects wall paint products in
                                                                     Indonesia.

2014
                                                                   2020
Avian Brands increased production capacity for wall paints and
waterproofings by 80,000 metric tons.                              • Avian Brands built Avian Innovation Center dedicated to
                                                                     research, development, and innovation, with an approximate
                                                                     area of 5,000m2;
2016                                                               • As a testament to its ongoing commitment to providing quality
                                                                     health and safety standards that are in line with international
Avian Brands continued to expand its distribution network to         standards, Avian Brands implemented the ISO 45001:2018 on
62 distribution centers across Indonesia through a Subsidiary,       Occupational Health and Safety Management System Standard;
PT Tirtakencana Tatawarna.                                           and
                                                                   • Avian Brands continued the expansion of its distribution
2017                                                                 network in Indonesia to 95 distribution centers through
                                                                     a Subsidiary, PT Tirtakencana Tatawarna.
• Avian Brands further increased its production capacity by
  50,000 metric tons; and
• GIC (Ventures) Pte Ltd became a shareholder of 10.00% of         2021
  Avian Brands’ shares through its wholly-owned Subsidiary,        • Avian Brands established PT Bangun Bersama Solusindo
  Archipelago Pte Ltd. The proceeds from the cash injection          as a joint venture entity, with 50.00% shareholding each by
  from GIC (Ventures) Pte Ltd were used to repay all of              Avian Brands and PT Cipta Mortar Utama, a wholly-owned
  Avian Brands’ outstanding bank loans.                              subsidiary of the Saint-Gobain Group, which is a leading
                                                                     player in the manufacturing of mortars for construction.
2018                                                                 The establishment of PT Bangun Bersama Solusindo was
                                                                     aimed at developing Avian Brands’ business in entering the
• Avian Brands acquired land located in Cirebon, West Java,          two-component cement-based waterproofing paint market
  Indonesia, with a total land area of 110,211m2, from its           in Indonesia;
  affiliate PT Bira Industri Rejeki Agung, which is reserved as    • In October 2021, Avian Brands acquired a 67.00%
  the future site of the third manufacturing facility;               shareholding in PT Multipro Paint Indonesia, which is
• Avian Brands further expanded its distribution network to          engaged in the manufacture of protective paint and marine
  78 distribution centers across Indonesia through a Subsidiary,     paint;
  PT Tirtakencana Tatawarna; and




2011 - 2018                                                        2018 - 2021



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Milestones (continued)

                                                                       2023
 2021
                                                                       • Avian Brands launched a range of new products, namely
 • Avian Brands listed its shares on the Indonesia Stock Exchange        Admiral Thinner Serbaguna and Admiral Anti Fouling,
   on December 8, 2021 with the stock code AVIA; and                     Brilliant Cat Tembok Interior and Brilliant Cat Tembok Eksterior,
 • Avian Brands continued its expansion plan by increasing the           Boyo Politur Melamine, Avian Cling Zinc Chromate, Admiral
   number of wholly-owned distribution centers to 101 through            Wood Filler Epoxy, Admiral Cat Kapal, Aries Bling, Avitex Wizz,
   a Subsidiary, PT Tirtakencana Tatawarna.                              No Drop Plus 3 in 1, No Drop Basic, Avian Glue Epoxy Hemat,
                                                                         and Cat Besi Anti Karat Avian 3 in 1; and
                                                                       • Avian Brands initiated a corporate action of shares buyback of
                                                                         its shares that have been issued and listed on the Indonesia
 2022                                                                    Stock Exchange in a maximum amount of 1,425,000,000 shares
                                                                         or approximately 2.3% of the total issued and paid-up capital.
 • Avian Brands continued to expand its marketing reach by
   increasing the number of wholly-owned distribution centers
   to 109, and establishing 4 wholly-owned mini distribution           2024
   centers through a Subsidiary, PT Tirtakencana Tatawarna;
 • Avian Brands appointed a new member of the                          • Avian Brands increased its total wholly-owned
   Board of Directors, Mrs. Angelica Tanisia Jozar, in order to          distribution centers to 124, and total wholly-owned
   increase the proportion of women in the top management                mini-distribution centers to 15 through PT Tirtakencana
   and realize its commitment to gender equality;
                                                                         Tatawarna, Avian Brands’ Subsidiary;
 • Avian Brands was successfully awarded the certification
                                                                       • Avian Brands secured two global patents, namely
   of ISO 50001:2018 on Energy Management System for the
   manufacturing facilities in Serang and Sidoarjo; and                  the Magnetite Paint (Fe₃O₄) applied to HomeDeco
 • Avian Brands launched new products, i.e., Woodcare Series,            Magnetic product and the Additive for Accelerating the
   Avitex Anti Viruz, No Drop Anti Panas, Avitex Gold,                   Hardening and Reinforcement of Enhanced Concrete,
   VIP Pengupas Cat Tembok (Water-Based), and several other              applied to No Drop Plaston product;
   products to meet market needs.                                      • Avian Brands received the ESG Award 2024 as the
                                                                         Best Issuer in the Capital Market Sector from Yayasan
                                                                         Keanekaragaman Hayati Indonesia (“KEHATI”), ESG
                                                                         Award 2024 in the Chemicals Sector for Environment
 2023
                                                                         Category from Katadata, Recognition for its Initiative in
 • Avian Brands increased its total wholly-owned distribution            Organizing Blood Donation in 2023 from the Indonesian
   centers to 118, and total wholly-owned mini-distribution              Red Cross of Sidoarjo Regency, Annual Report Award
   centers to 14 through PT Tirtakencana Tatawarna, Avian Brands’        2023 from the National Committee on Governance Policy
   Subsidiary;
                                                                         (Komite Nasional Kebijakan Governansi or “KNKG”),
 • Avian Brands commenced construction of a new manufacturing
                                                                         inclusion in Forbes’ “200 Best Under A Billion 2024” list,
   facility in Cirebon with a land area of 11 hectares and an annual
   production capacity of up to 225,000 tons, as a strategy to           PROPER National Green Rating from the Ministry of
   increase Avian Brands’ production capacity to respond to future       Environment and Forestry of the Republic of Indonesia,
   market opportunities and potential;                                   Top 50 Big Capitalization Public Listed Company from the
 • Avian Brands successfully earned ISO/IEC 27001:2013                   Indonesian Institute for Corporate Directorship (“IICD”),
   certification on Information Security Management System;              as well as Green Industry Leader in the Green Future
 • Avian Brands successfully received the Overall Winner award
                                                                         Summit 2024 Ceremony from Sun Energy; and
   in the 2023 Katadata Corporate Sustainability Awards (“KCSA”)
   for the Chemicals Sector category from Katadata, the Green          • Avian Brands launched new products, namely Avian Cling
   Industry Pioneer in Accelerating Sustainable Development in           Water Based, Boyo Politur Spray, No Drop Tile Grout,
   East Java award from the Governor of East Java, Going Green           No Drop Dempul Instan, No Drop Serat Fiber, GM 385
   is Good for Your Business award from Xurya Daya Indonesia,            Perekat Bata Ringan Ekonomis, Pro-X 208, No Drop Beton
   Prevention and Mitigation of Covid-19 in the Workplace award          dan Batu Alam, Avian Non-Sag Epoxy Hemat, Supersilk
   from the Minister of Manpower of the Republic of Indonesia,           Semi Kilap, No Drop Kolam Ikan, GM 265 Acian Abu-Abu
   Zero Accident Award from the Governor of East Jawa, and
                                                                         Ekonomis, GM 275 Acian Putih Ekonomis, Supersilk Basic,
   Indonesia Architectural Paints and Coatings Market Leadership
   Award from Frost & Sullivan;                                          as well as Avian Cat Lapangan.




 2021 - 2023                                                           2023-2024



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                                                                                 PT Avia Avian Tbk • 2024 Annual Report




Brief History
Avian Brands has a long history in the national paint
industry, which began in 1978 when it was founded by
Mr. Soetikno Tanoko, father of the current President Director,
Mr. Wijono Tanoko, and the current President Commissioner,
Mr. Hermanto Tanoko. Mr. Soetikno Tanoko is also the grandfather
of the Vice President Director, Mr. Ruslan Tanoko, and the Director,
Mr. Robert Christian Tanoko. At the start of its establishment,
Avian Brands focused on conducting business activities in the
integrated paint manufacturing sector, and had the competitive
advantage of combining the manufacturing of raw materials
and paint packaging in one manufacturing facility located
in Sidoarjo, East Java. Such an advantage was supported by
Avian Brands’ strategic move to invest in specialized machinery,
showcasing Avian Brands’ long-term vision to become a major
player in the national paint industry.

Over time, not only did Avian Brands maintain its position amidst competition in the industry, but it also strived to grow
continuously. In 1996, Avian Brands expanded by building a second facility in Serang, West Java. More than just a response to
increasing market demand, the construction of this facility was also a manifestation of Avian Brands’ commitment to increasing
production capacity and reinforcing its competitive edge in the industry. This expansion was also part of Avian Brands’ strategy
to ensure that it can continue to meet customer needs with high-quality products.

Recognizing the importance of efficient distribution to reach a wider market, Avian Brands established
PT Tirtakencana Tatawarna in 2000, as a subsidiary focusing on distribution and marketing networks. This move allowed
Avian Brands to further optimize its distribution network and expand its product range across all regions in Indonesia.
By establishing distribution centers in various areas, PT Tirtakencana Tatawarna is instrumental in ensuring easy access to
Avian Brands’ products for customers nationwide. Additionally, in 2010, Avian Brands established PT Tirtakencana Batamindo,
located in Batam, to further strengthen the distribution chain in the region.

In 2018, Avian Brands expanded its business portfolio by establishing PT Solusi Rumah Praktis, which is almost entirely
owned by Avian Brands, with 99.99% shareholding. This was subsequently followed by investment in the joint venture
PT Bangun Bersama Solusindo with a 50.00% shareholding. In 2021, Avian Brands also acquired 67.00% shares of
PT Multipro Paint Indonesia. The combination of the above measures highlights Avian Brands’ dedication to cementing its
position in the industry and optimizing synergies with its main business lines.

Another significant achievement was when Avian Brands went public in 2021 through an Initial Public Offering. This marks
a historical milestone that signified Avian Brands’ transformation into a more transparent and accountable public company.
This corporate action further encouraged Avian Brands to keep improving its excellence, including through continuous
research and development. Based on this commitment, Avian Brands has successfully introduced innovative paint products
that are both high-quality and environmentally friendly. In fact, in 2024, Avian Brands managed to secure two global
patents, namely the Magnetite Paint (Fe₃O₄) applied to HomeDeco Magnetic product and the Additive for Accelerating the
Hardening and Reinforcement of Enhanced Concrete, applied to No Drop Plaston product, further cementing its position
as an industry-leading innovator.

Avian Brands’ commitment to Environmental, Social, and Governance (“ESG”) principles is also demonstrated through various
initiatives and certifications that have been achieved. Some of Avian Brands’ paint products have obtained Singapore Green
Labelling Scheme certification, which recognizes products with high standards related to Volatile Organic Compound (“VOC”),
heavy metal-free products, and the use of bio-based or alternative raw materials. As of the end of 2024, 34 of Avian Brands’
products have successfully earned the Singapore Green Label. Moreover, Avian Brands has also earned numerous awards,
such as the ESG Award 2024 as the Best Issuer in the Capital Market Sector from Yayasan Keanekaragaman Hayati Indonesia
(“KEHATI”), ESG Award 2024 in the Chemicals Sector for the Environment Category from Katadata, Recognition for its Initiative
in Organizing Blood Donation in 2023 from the Indonesian Red Cross of Sidoarjo Regency, Annual Report Award 2023 from the
KNKG, inclusion in Forbes’“200 Best Under A Billion 2024” list, PROPER National Green Rating from the Ministry of Environment
and Forestry of the Republic of Indonesia, Top 50 Big Capitalization Public Listed Company from the Indonesian Institute for
Corporate Directorship (“IICD”), as well as Green Industry Leader in the Green Future Summit 2024 Ceremony from Sun Energy,
further reinforcing Avian Brands’ reputation as a company with deep concern for the environment and sustainability.




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                                      COMPANY PROFILE




Company Vision, Mission,
and Values



                                                                          VISION
                                                                                            To become an integrated,
                                                                                            environmentally friendly,
                                                                                            leading, and trusted
                                                                                            paint company in
                                                                                            Indonesia.”




MISSION
             To provide added value
             to stakeholders through
             the development of
             various quality paints.”




The Board of Commissioners and Board of Directors periodically review
Avian Brands’ Vision and Mission. This review is conducted to ensure
that Avian Brands’ strategic direction and objectives remain relevant and
aligned with Avian Brands’ development as well as market dynamics.
Based on the review results for the year 2024, Avian Brands’ Vision and
Mission remain relevant to the purpose and objectives of Avian Brands’
establishment, and in line with developments in the national paint industry. Such evaluation shows that Avian Brands’ Vision to become
an integrated, environmentally friendly, leading, and trusted paint company in Indonesia remains actual and can be realized through
its Mission, i.e., to provide added value to stakeholders through the development of various quality paints. In addition, this review also
confirms that the strategy and business direction adopted by Avian Brands so far, has successfully placed it in a strong position to face
increasingly intense competition in the paint industry.




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                                     PT Avia Avian Tbk • 2024 Annual Report




COMPANY
VALUES

          Customer Focus
           Able to make (internal and external) customers and their needs as
           the main focus in a positive and productive working relationship.




          Integrity
           Be honest in words, and have the commitment and consistency
           in acting according to rules, norms, and morality.




          Teamwork
           Ability to be part of a group, work with the group members, and
           contribute to achieving the group’s goals.




          Agility
           Ability to be agile, flexible, and assertive in anticipating, initiating,
           and taking advantage of any opportunity as well as to avoid
           negative consequences from the changes.




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                                   COMPANY PROFILE




Meaning of Avian Logo




                             1
                             2
                             3



     3 Strands of Feathers                              Duck Figure                                  Logotype


3 Strands of : The lines depicting “3 Strands of Feathers” symbolize the 3 generations of Avian Brands’ management,
Feathers       namely the past, present, and future.
                The 3 Strands of Feathers unite to form the body of a duck with a figure symbolizing Avian Brands that is
                managed professionally, transparently, and guided by Good Corporate Governance so that Avian Brands may
                continue to grow positively and remain strong, while providing added value to stakeholders, Shareholders,
                and investors.
Duck Figure : The head of the duck represents gentleness, kindness, honesty, and humanity.
                The duck figure facing right, symbolizes Avian Brands’ constant forward motion, strength, perseverance and
                ability to seize opportunities from any upcoming challenges to further its mission of sustainable corporate
                development.
Logotype      : The logotype is divided into 2 hierarchical parts, namely:
                • The word “Avian” uses a bold Serif font that symbolizes Avian Brands’ identity; and
                • The word “Brands” describes various types of decorative paint products, wood and metal paints,
                  waterproofing, adhesives, instant cement, and other supporting building materials. It also uses a more
                  straightforward Sans Serif font.



Philosophy of Avian Logo Color
The philosophy of the logo is further reinforced and represented by the following color selection:

Emerald Green : Represents the PAST, protects its successors with vast discretion, experience, and maturity.
Turquoise     : Represents the PRESENT, bridges generational relationships, provides balance, stability, and
		 knowledge accumulation.
Lime Green    : Represents the FUTURE, and brings fresh ideas and unrelenting passion, regeneration, and growth.

•    The choice of the gradation of green also represents the harmonious relationship between the three generations.
•    GREEN itself symbolizes the “sense of art”.




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                                                                                    PT Avia Avian Tbk • 2024 Annual Report




Business Activities
Avian Brands is engaged in the manufacturing industry and trading, with paints constituting a majority of its products.
This is stipulated under Article 3 of Avian Brands’ Articles of Association, pursuant to Deed No. 3 dated August 4, 2021,
made before Liestiani Wang, S.H., M.Kn., Notary in the South Jakarta Administrative City, regarding Amendments to the
Articles of Association of PT Avia Avian Tbk. Based on the Articles of Association, the purpose and objective of Avian Brands is
to engage in manufacturing industries and wholesale trading. To achieve this, Avian Brands may conduct the following
business activities:




                               Paint and Printing Ink Industry

                               This group encompasses the manufacture of various paints, such as base paint, metal paint,
                               wood paint, wall paint, boat paint, epoxy and enamel paint, and lacquer, including the industries of
                               processed pigments and dyes, dyes and opacifiers, enamel polish and coatings and other preparatives,
                               printing inks, and art paints.



                               Varnish Industry (Including Mastics)

                               This group encompasses the manufacture of various types of varnishes, such as organic composite
                               solvents and thinners, as well as paint or varnish removers, including mastics.



                               Lacquer Industry

                               This group encompasses the manufacture of lacquer, including the industries of putty and plaster or
                               putty compounds and non-refractory putty or similar surface-covering materials.



                               Adhesive/Glue Industry

                               This group encompasses the manufacture of adhesives/glues for industrial or household purposes,
                               derived from plants, animals, or plastics, such as starch, bone adhesives, cellulose esters and ethers,
                               phenol formaldehyde, urea formaldehyde, melamine formaldehyde, and epoxy adhesives.



                               Ready-mixed and Dry-mixed Concrete and Mortar Industry

                               This group encompasses the manufacture of ready-mixed and dry-mixed
                               concrete and mortar.




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                                        COMPANY PROFILE




In addition to the main business activities in the manufacturing industry and wholesale trade, Avian Brands may also conduct
supporting business activities as described below:


     Industry of Artificial Resin (Synthetic Resin) and Plastic Raw Materials

               This group encompasses the manufacture of artificial resins and plastic raw materials
               (pure plastic ore), such as alkyds, polyesters, aminos, polyamides, epoxides, silicones,
               polyurethanes, polyethylene (PE), polypropylene (PP), polystyrene, polyvinyl chloride,
               cellulose acetate, and cellulose nitrate. Further processing of artificial resins and purchased
               plastic materials to produce goods from these raw materials, such as plastic articles and
               films and film sheets that are not yet sensitive to light are included in group 26800.



     Industry of Organic-based Chemical for Raw Materials of Dyes and Pigments, Dyes, and Pigments

               This group encompasses basic chemical industry businesses that produce organic
               chemicals, dyes, and pigments along with their cyclical intermediates, such as phenol
               intermediates and their derivatives, textile dyes, and dyes for food and medicine.



     Industry of Buckets, Cans, Drums, and Other Metal Containers

               This group encompasses the manufacture of metal or canned containers, such as food or
               beverage cans, paint or other chemical cans, barrels, drums, buckets, boxes, jerrycans, and
               others. Including the metallic closure industry.



     Wholesale Trade of Paints

               This group encompasses large trading businesses of various kinds of paints for construction
               materials, such as base paints, metal paints, wood paints, and wall paints. Including the
               retail trade of enamel, putty, and plaster.



Business Activities Conducted in 2024

                    Business Activities based on Articles of Association                        Has/Has Not Been Conducted
 Main Business Activities
 Paint and Printing Ink Industry

 Varnish Industry (Including Mastics)

 Lacquer Industry

 Adhesive/Glue Industry

 Ready-mixed and Dry-mixed Concrete and Mortar Industry

 Supporting Business Activities
 Industry of Artificial Resin (Synthetic Resin) and Plastic Raw Materials

 Industry of Organic Basic Chemical Industry for Raw Materials of Dyes and Pigments, Dyes,
 and Pigments
 Industry of Buckets, Cans, Drums, and Other Metal Containers

 Wholesale Trade of Paints




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                                                                                                                                                               PT Avia Avian Tbk • 2024 Annual Report




Products and Services
Avian Brands constantly strives to establish a reputation for dedication to providing high-quality products and services,
as well as fulfilling various needs of customers. Avian Brands’ products and services are generally classified into two main
categories, offering comprehensive solutions for customers in various sectors. The first is the architectural solution category,
which includes various products for property construction and renovation. The second is the trading goods category, in which
Avian Brands provides supporting products for architectural solutions. More detailed information about Avian Brands’ products
and services, is described as follows:


                                  Architectural Solutions

                               The architectural solutions products are the main products produced by Avian Brands, comprising wall paint, wood
                               and metal paint, waterproofing paint, wood care, as well as other architectural solutions, including roof paint,
                               instant cement, and automotive refinish paint. As of December 31, 2024, Avian Brands has a diversified portfolio
                               of approximately more than 2,500 SKUs for architecture solution products that are marketed and distributed,
                               reaching 105 brands. Some of Avian Brands’ major household brands include Avian, Avitex, and No Drop.


                                  Trading Goods

                               Avian Brands’ trading goods are mainly the supporting products of architectural solutions comprising sales of pipes,
                               furniture, and supporting products required in the painting processes, such as paint rollers, paint brushes, sealing
                               tape, and sandpaper. Such trading goods are not manufactured by Avian Brands but are procured from its affiliates.
                               Trading of these goods is performed by a Subsidiary, PT Tirtakencana Tatawarna.




                                                                                                             Architectural Solutions
                                                     Wall                                                                 Wood and Metal                                                           Waterproofing



   Sunguard         Sunguard           Supersilk            Supersilk       Supersilk      Supersilk Basic        Platinum        Avian 3 in 1      Avian Cat Kayu         No Drop         No Drop Beton         No Drop         No Drop Basic      No Drop
   All-In-One                          Semi Kilap           Anti Noda                                                              Anti Karat          dan Besi           Anti Panas       dan Batu Alam                                         Bitumen Black




   Avitex Gold     Avitex Anti          Avitex              Avitex Cat     Avitex Wizz          Aquamatt         Avian Cling       Avian Cling     Glovin Cat Kayu         No Drop            No Drop            No Drop            No Drop         No Drop
                      Viruz            Eksterior             Tembok                                               Synthetic      Zinc Chromate      dan Tembok            Kolam Ikan         Plus 3 in 1        Serat Fiber         Plaston         Mortar




   Aries Gold       Aries Bling          Aries Cat                                                              Yoko Cat Kayu    Avian Cling         Admiral Cat         No Drop Tape         No Drop           No Drop            Pro-X 207
                                         Tembok                                                                  dan Tembok      Water Based           Kapal                                 Tile Grout       Dempul Instan



                                       Wood Care and Glue                                                                                                                       Others




                       Wood Eco Series                              Avian Lem     Avian Lem Avian Non-Sag       Absolute Roof     Avitex Cat      Yoko Cat                                                 Giant Mortar      GM 265 Acian        Giant Mortar
                                                                   Epoxy Super   Epoxy Hemat Epoxy Super          Coating       Genteng & Seng Genteng & Seng                                                  220         Abu-Abu Ekonomis          270

                                                                                                                                 Roof Paint


                                                                                                                                                                                                        GM 275 Acian           Giant Mortar GM 385 Perekat Bata
                         Boyo Series                               Avian Non-Sag Epoxy Hemat Lem Putih VIP                                                                                             Putih Ekonomis              380       Ringan Ekonomis
                                                                                                PVAc




                                                                                                                 Suzuka Cat      Suzuka Spray       Admiral Thinner   VIP Pengupas     VIP Paint           Giant Mortar       Giant Mortar        Pro-X 208
                                                                                                                Duco Otomotif                         Serbaguna        Cat Tembok      Remover                 420                L500
                 Boyo Series                 Boyo Politur           Admiral Wood Filler Epoxy
                                                Spray
                                                                                                                    Autorefinish and                 Thinner              Wall Paint                                      Instant Cement
                       Wood Care                                                    Glue                              Spray Paint                                          Peeler


                                                                                                                  Trading Goods
                                                     Pipes                                                                                Furniture                                                               Furniture




           Power Max                                               Power                            Quad                                                                                                             Homecare
                                                                                                                                                 Activ




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                                   COMPANY PROFILE




        Category                                                        Product Name
Wall Paint             •   Sunguard All-In-One;              •   Avitex Gold;                       •   Aries Bling;
                       •   Sunguard;                         •   Avitex Anti Viruz;                 •   Aries Gold;
                       •   Supersilk Semi Kilap;             •   Avitex Eksterior;                  •   Aries Cat Tembok;
                       •   Supersilk Anti Noda;              •   Avitex Cat Tembok;                 •   Aquamatt;
                       •   Supersilk;                        •   Avitex Wizz;                       •   Everglo Kids Care;
                       •   Supersilk Basic;                  •   Avitex 4kids;                      •   No Odor Medicare;
                       •   Brilliant Cat Tembok Interior;    •   Avitex One Coat;                   •   No Odor;
                       •   Brilliant Cat Tembok Eksterior;   •   Avitex Cat Tembok Dapur &          •   Jasmine; and
                                                                 Kamar Mandi;                       •   Fres.
Special Effect Paint   • HomeDeco Glow In The Dark;          • HomeDeco Glitz; and                  • HomeDeco Metallic.
                       • HomeDeco Magnetic;
Waterproofing          •   No Drop Anti Panas;               •   No Drop Membran;                   • No Drop Plus 3in1;
                       •   No Drop Beton dan Batu Alam;      •   No Drop Serat Fiber;               • No Drop 100; and
                       •   No Drop;                          •   No Drop Mortar Anti Bocor;         • PRO-X 207.
                       •   No Drop Basic;                    •   No Drop Tape;
                       •   No Drop Bitumen;                  •   No Drop Tile Grout;
                       •   No Drop Kolam Ikan;               •   No Drop Dempul Instan;
Wood and Metal Paint   • Admiral Cat Kapal;                  • Avian Cat Kayu dan Besi;             • Avian Cat Alumunium;
                       • Avian Cling Synthetic;              • Glovin Cat Kayu dan Besi;            • Cat Besi Anti Karat Avian 3 in 1;
                       • Platinum;                           • Yoko Cat Kayu dan Besi;                and
                                                                                                    • Avian Cling Water Based.
Wood Care              • Wood-Eco Woodstain Water-           • Boyo Wood Stain Solvent-Based;       • Boyo Clear Coat NC
                         Based;                              • Boyo Politur Vernis Water-Based;       Solvent-Based;
                       • Wood-Eco Woodstain Solvent-         • Boyo Politur Vernis                  • Boyo Politur Melamin; and
                         Based;                                Solvent-Based;                       • Boyo Politur Spray.
                       • Wood-Eco Politur Eksterior P03;     • Boyo Wood Filler Solvent-Based;
                       • Wood-Eco Politur Interior P01;      • Boyo Sanding Sealer NC
                                                               Solvent-Based;
Primer                 • Avian Cling Zinc Chromate;          • Lenkote Alkali Resisting Primer;     • Belmas Zinc Chromate; and
                       • Avian Zinc Chromate;                • Lenkote Wall Sealer;                 • Suzuka Epoxy Filler.
                       • Avitex Alkali Resisting Primer;     • Yoko Cat Dasar Kayu dan Besi;
Putty                  • Lenkote Plamir Tembok               • Avitex Plamir Tembok; and
                         (Wall Putty);                       • Aries Gold Wall Putty.
                       • No Odor Wall Putty;
Roof Paint             • Absolute Roof Coating;              • Avitex Cat Genteng & Seng; and       • Yoko Cat Genteng & Seng.
Instant Cement         • GM 220 Plamir Instan ;              • GM 275 Acian Putih Ekonomis;         • GM 480 Perekat Keramik
                       • GM 260 Acian Abu-Abu;               • GM 380 Perekat Bata Ringan;            Dinding & Lantai;
                       • GM 265 Acian Abu-Abu                • GM 385 Perekat Bata Ringan           • GM L500 Bonding Adhesive;
                         Ekonomis;                             Ekonomis;                              and
                       • GM 270 Acian Putih;                 • GM 420 Perekat Keramik               • GM 510 Tile Grout.
                                                               Ekonomis;
Glue                   • Avian Lem Epoxy Super;              • Avian Non-Sag Epoxy Hemat;           • Viplas; and
                       • Avian Lem Epoxy Hemat;              • Lem Putih VIP PVAc;                  • Admiral Wood Filler Epoxy.
                       • Avian Non-Sag Epoxy Super;          • Lem Putih MAX PVAc;
Stone Coating          • No Lumut Solvent-Based; and         • No Lumut Water-Based.
Autorefinish and       • Suzuka Spray;                       • Suzuka 2:1 PU Clear Coat; and        • Suzuka 4:1 PU Clear Coat.
Spray Paint            • Suzuka Cat Duco Otomotif;
Floor Coating          • Avian Roadline Paint;               • Avian Cat Paving; and                • Avian Cat Lapangan.
Thinner                •   Admiral Thinner Serbaguna;        •   Avia Thinner Lacquer Super;        •   Thinner 1633;
                       •   Avian Thinner Enamel;             •   Aries Thinner Lacquer A;           •   Thinner 1634;
                       •   Avian Thinner B Asli;             •   Aries Thinner Lacquer A Special;   •   Thinner 1601; and
                       •   Avia Thinner Lacquer A;           •   Thinner 16213;                     •   Thinner 1602.
                       •   Avia Thinner Lacquer A Special;   •   Thinner 1660;
Cement Additive        • No Drop Plaston.
Others                 • VIP Pengupas Cat Tembok;            • PRO-X 111;                           • Pro-X-110; and
                       • VIP Paint Remover;                  • Pro-X-208;                           • Pro-X-222.
                       • Avitex Biocidal Wash;
Supporting Products    •   Basic Paint Roller;               •   Synthetic Brush;                   •   Masking Tape;
                       •   Green Brush;                      •   Budget Paint Roller;               •   Seal Tape;
                       •   Yellow Brush;                     •   All Paints Paint Roller;           •   Drywall Tape;
                       •   Plastic Scrapper;                 •   Budget Roller Cover;               •   Fiberglass Tape;
                       •   Mini Refill;                      •   Regular Roller Cover;              •   Roof Drain;
                       •   Mini Roller;                      •   All Paints Roller Cover;           •   Kran Air Taman;
                       •   Paint Tray;                       •   Abrasive Paper;                    •   Seal Tape Ekonomis;
                       •   White Brush;                      •   Abrasive Cloth Roll;               •   Basic Paint Tray Set; and
                                                                                                    •   Paint Tray Set.


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                                                                                  PT Avia Avian Tbk • 2024 Annual Report




Product Development in 2024

Product development has become Avian Brands’ main focus in order to deliver the latest innovations and improve the product
portfolio. With a commitment to in-depth research and development, Avian Brands constantly strives to proactively respond to
evolving market trends and customer needs. Through a collaboration between technology optimization and excellent human
resources in research and development, Avian Brands managed to deliver impressively reliable products that provide added
value to end-users. Several products developed and marketed throughout the year of 2024 are described as follows:




   Avian Cling Water Based           Boyo Politur Spray               No Drop Tile Grout               No Drop Dempul Instan

 • Anti-rust Without Primer     • Maximum Penetration into       • Acid Fluid Resistant             • Flexible
 • Non-yellowing                  Wood Fiber                     • Waterproof                       • Seals Cracks
 • Long-lasting gloss           • For Exterior and Interior      • Not Easily Cracked               • Water Repellent
                                • Quick Drying




     No Drop Serat Fiber        GM 385 Perekat Bata Ringan                 Pro-X 208                     No Drop Beton and
                                        Ekonomis                                                             Batu Alam

 • Waterproof                   • Economical                     • Easy Mixing                      • Water Repellent
 • Elastic                      • Strong Adhesion                • Easy Application                 • Nano Particle
 • Seals Cracks                 • Quicker Application            • Long lasting                     • Lotus Leaf Effect




          Avian Non-Sag Epoxy Hemat                        Supersilk Semi Kilap                     No Drop Kolam Ikan

 • Strong Adhesion                                • Luxurious Gloss                        • Leakproof
 • Not Easily Dripping                            • Anti-bacterial                         • Non-toxic
 • No Pungent Odor                                • Easy to Clean with Water               • Aquatic Ecosystem




    GM 265 Acian Abu-Abu             GM 275 Acian Putih                 Supersilk Basic                  Avian Cat Lapangan
         Ekonomis                        Ekonomis
                                                                 • Super Cover Technology           • Anti-slip
 • Strong Adhesion              • Strong Adhesion                • Good Touch Up                    • Friction Resistant
 • Perfectly Seal Hair Cracks   • Perfectly Seal Hair Cracks     • Ultra Matte look                 • Better Bouncy Rate
 • Without Plaster              • Without Plaster




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                                   COMPANY PROFILE




Manufacturing Facilities
Avian Brands has two integrated manufacturing facilities, which are among the largest manufacturing facilities in the national
paint industry. Avian Brands’ manufacturing facilities have adopted Enterprise Resource Planning (“ERP”) and Warehouse
Management System (“WMS”) to optimize operational efficiency. Avian Brands also utilizes other cutting-edge technologies,
such as Automatic Weighing System (“AWS”), Distributed Control System (“DCS”), Computerized Monitoring Board (“CMB”),
Yard Management System (“YMS”), and Computerized Maintenance Management System (“CMMS”) to ensure proper control
and monitoring in every stage of production, while simultaneously boosting productivity, effectiveness, data accuracy, as well
as supporting environmentally friendly programs by minimizing paper usage.

In addition, Avian Brands’ commitment to sustainability is also reflected in the use of environmentally friendly energy
sources with solar panels and transparent factory roofs that reduce dependence on conventional electricity. Avian Brands’
manufacturing facilities have also obtained certifications of ISO 9001 on Quality Management System, ISO 14001 on
Environmental Management System, ISO 45001 on Occupational Health and Safety Management System, ISO 50001 on Energy
Management System, and ISO/IEC 27001:2013 on Information Security Management System. This demonstrates Avian Brands’
commitment to international standards in all operations.

In terms of HR, in addition to having a competent and excellent manufacturing team, Avian Brands has also established an
Emergency Response Preparedness team trained and certified by the Ministry of Manpower of the Republic of Indonesia.
This allows Avian Brands’ manufacturing facilities to be more prepared to face emergencies with optimal speed and safety.
With all these measures in place, Avian Brands strives to constantly improve its competitive edge in the industry, both in terms
of product innovation and quality, as well as maintaining a safe and sustainable work environment. More detailed information
about Avian Brands’ manufacturing facilities, is described as follows:

                                                                                                                   Production
                               Land Area                                                           Production        Capacity
 No.      Owner    Location                    Year     Main Products           Ownership
                                  (m2)                                                                Shift         (in metric
                                                                                                                   tons/year)
                                                        No Drop, Avitex,
                                                         Avian Cat Kayu
                                                       dan Besi, Supersilk,
                                                                                 Right to Build      Operates
                                                        Sunguard, Aries
         Avian                                                                     Certificate      1 - 2 shifts
 1.                 Sidoarjo      105,121      1978        Gold, Boyo,                                               213,840
         Brands                                                                (under the name        per day,
                                                         Jasmine, Avian
                                                                               of Avian Brands).   5 days/week.
                                                         Thinner, Avian
                                                       Epoxy, Suzuka, and
                                                          Giant Mortar.
                                                         No Drop, Avitex,        Right to Build      Operates
         Avian                                         Avian Cat Kayu dan          Certificate      1 - 2 shifts
 2.                 Serang         36,880      1996                                                                   72,576
         Brands                                        Besi, Aries Gold, and   (under the name        per day,
                                                          Giant Mortar.        of Avian Brands).   5 days/week.
 Total                                                                                                              286,416




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                                                           PT Avia Avian Tbk • 2024 Annual Report




Operational Areas

                                                           Wholly-owned Distribution Center 124
                                                           Wholly-owned Mini Distribution Center 15
                                                           Independent Distribution Center   38




                              Product Distribution Areas

    Wholly-owned        Wholly-owned Mini        Independent                     Number of Retail
  Distribution Center   Distribution Center   Distribution Center                Outlets Supplied




       Sumatra                Sumatra              Sumatra                             Sumatra

          26                     5                     8                              11,326
         Java                  Java                  Java                                Java

          54                     0                    17                              32,026
      Kalimantan            Kalimantan            Kalimantan                         Kalimantan

          15                     2                     4                               5,548
       Sulawesi              Sulawesi              Sulawesi                            Sulawesi

          14                     2                     5                               5,303
     Other Areas in        Other Areas in        Other Areas in                     Other Areas in
       Indonesia             Indonesia             Indonesia                          Indonesia

          15                     6                     4                               4,248
        Total                 Total                 Total                               Total
         124                    15                    38                              58,451




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                                    COMPANY PROFILE




Organizational Structure

                                          GENERAL MEETING OF SHAREHOLDERS



                                                     The Board of Commissioners

                                   President Commissioner   : Hermanto Tanoko
                                   Independent Commissioner : Mohammad Noor Rachman Soejoeti




                     The Good Corporate                                      The Nomination and
                                                                                                              The Audit Committee
                    Governance Committee                                   Remuneration Committee

                                                                                                           Chairman : Mohammad Noor
                  Chairman : Robert Christian                              Chairman : Mohammad Noor
                                                                                                                      Rachman Soejoeti
                             Tanoko                                                   Rachman Soejoeti
                                                                                                           Member : Sammy Tony Saul
                  Member : Kurnia Hadi Sinanto                             Member : Hermanto Tanoko
                                                                                                                      Lalamentik
                  Member : Iwan Sigit                                      Member : Iwan Sigit
                                                                                                           Member : Wardiman




                                                              President Director

                                                                 Wijono Tanoko




      Director of Research,                 Director of
                                                                                                           Director of Finance
       Development, and                   Operations and                   Vice President Director
                                                                                                          and Investor Relations
           Innovation                      Development

       Angelica Tanisia Jozar          Robert Christian Tanoko                    Ruslan Tanoko              Kurnia Hadi Sinanto




        The Related Party                   Operational                               Sales                 Investor Relations
     Transaction Committee
                                                                                                              Andreas Timothy
                                                 Iwan Sigit                       Dede Maryadi
     Chairman : Kurnia Hadi                                                                                     Hadikrisno
                Sinanto
     Member : Wardiman
                                      • Procurement
     Member : Bobby Septian                                                        Marketing
                                      • Strategic Management                                             • Finance
                Yahya
                                        System                                                           • Accounting and Tax
                                      • Sustainability                            Novi Christiana



         The Corporate                                                     Information Technology
           Secretary
                                                                                 Hendrik Antonius
         Hera Septi Astuti



     The Audit Internal Unit

       Bobby Septian Yahya




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                                                                               PT Avia Avian Tbk • 2024 Annual Report




Membership in Associations
Avian Brands is a member of several industry associations and business groups. Avian Brands’ membership in these
forums not only expands its business network and collaboration, but also enables Avian Brands to keep abreast of the
latest developments in the industry. Through active participation in these associations, Avian Brands can better understand
industry policies, promote and adopt best practices, and raise the standards of professionalism in every aspect of operations.
In addition, through membership in AEI, Avian Brands can also expand its knowledge and stay updated with the latest
developments in capital market law and regulations, which is crucial for Avian Brands, as a public company, to ensure
compliance with applicable regulations. As of the end of 2024, Avian Brands is a member of the following associations:




                                                        Indonesian Paint Producers Association

                                                        Scale                  : National
                                                        Status of Avian Brands : Member




                                                        Indonesian Public Listed Companies Association

                                                        Scale                  : National
                                                        Status of Avian Brands : Member




                                                        Indonesian Synthetic Resin Association

                                                        Scale                  : National
                                                        Status of Avian Brands : Member




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                                COMPANY PROFILE




Profile of the Board of Commissioners


 BOARD OF COMMISSIONERS:
 Hermanto Tanoko (President Commissioner), Mohammad Noor Rachman Soejoeti (Independent Commissioner).
 * Notes: From left to right.




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                                                                         PT Avia Avian Tbk • 2024 Annual Report




HERMANTO TANOKO
President Commissioner



Indonesian, 62 years old.



   Term of Office and Basis of Appointment
   2021 – 2026:
   The Deed of Restatement of Shareholders’ Resolutions in Lieu of Extraordinary General Meeting of Shareholders of
   Avian Brands No. 19 dated June 22, 2021, drawn up before Anwar, S.H., M.Kn., a Notary in Gresik Regency.

   Educational Background and Certifications
   Master of Management from IBMT School of Management in 2001.

   Work Experiences
   • Commissioner of PT Sariguna Primatirta (2001 – 2009); and
   • Vice President Director of PT Solusi Rumah Praktis (2018 – 2024).

   Dual Appointments
   • Commissioner of PT Tirtakencana Tatawarna (2000 – present);
   • President Commissioner of PT Jaya Sukses Makmur Sentosa Tbk (2003 – present);
   • President Commissioner of PT Sariguna Primatirta Tbk (2009 – present);
   • President Director of PT Tancorp Global Sentosa (2010 – present);
   • Commissioner of PT Tirtakencana Batamindo (2010 – present);
   • President Commissioner of PT Avia Avian Industri Pipa (2014 – present);
   • President Director of PT Tancorp Surya Sentosa (2015 – present);
   • President Commissioner of PT Caturkarda Depo Bangunan Tbk (2020 – present);
   • President Commissioner of PT Multipro Paint Indonesia (2021 – present);
   • Member of the Nomination and Remuneration Committee of Avian Brands (2021 – present);
   • President Commissioner of PT Penta Valent Tbk (2022 – present); and
   • President Commissioner of PT Solusi Rumah Praktis (2024 – present).

   Education/Training in 2024
   -


   Affiliation
   Mr. Hermanto Tanoko is Avian Brands’ ultimate beneficial owner, who shares a familial and financial
   relationship with Mr. Wijono Tanoko as President Director, Mr. Ruslan Tanoko as Vice President Director, and
   Mr. Robert Christian Tanoko as Director. He is also affiliated with the Main and Controlling Shareholder of
   Avian Brands, namely PT Tancorp Surya Sentosa, where he serves as President Director. However, he has no familial or
   financial relationship with other members of the Board of Commissioners and Board of Directors.




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                                      COMPANY PROFILE




      MOHAMMAD NOOR
      RACHMAN SOEJOETI
      Independent Commissioner



      Indonesian, 67 years old.


           Term of Office and Basis of Appointment
           2021 – 2026:
           The Deed of Restatement of Shareholders’ Resolutions in Lieu of the Extraordinary General Meeting of Shareholders
           of Avian Brands No. 19 dated June 22, 2021, drawn up before Anwar, S.H., M.Kn., a Notary in Gresik Regency.
           Educational Background and Certifications
           • Bachelor of Economics from Gadjah Mada University, Yogyakarta in 1982; and
           • Master of Arts in Economics from Colorado State University, Colorado, United States of America in 1991.
           Work Experiences
           • Head of Inspection and Investigation Bureau, Capital Market Supervisory Agency, Ministry of Finance of the
             Republic of Indonesia (1999 - 2000);
           • Member of the Supervisory Board of the Republic of Indonesia Money Printing Corporation (2000 – 2007);
           • Head of Service Sector Company Financial Assessment Bureau, Capital Market Supervisory Agency,
             Ministry of Finance of the Republic of Indonesia (2000 - 2011);
           • Head of Securities Transactions and Institutions Bureau, Capital Market and Financial Institutions Supervisory
             Agency, Ministry of Finance of the Republic of Indonesia (2012 - 2013);
           • Deputy Commissioner for Capital Market Supervision II of the Financial Services Authority (2013 – 2017);
           • President Commissioner of PT Maybank Asset Management (2017 – 2020);
           • President Commissioner of PT Ristia Bintang Mahkota Sejati Tbk (2018 – 2020); and
           • Commissioner of PT Bursa Efek Indonesia (2018 – 2024).
           Dual Appointments
           • Chairman of the Audit Committee of PT Bursa Efek Indonesia (2018 – present);
           • Chairman of the Audit Committee of Avian Brands (2021 – present);
           • Chairman of the Nomination and Remuneration Committee of Avian Brands (2021 – present); and
           • Independent Commissioner of PT Nusantara Sejahtera Raya Tbk (2023 – present).
           Education/Training in 2024
           • Capital Market Summit and Expo by the Financial Services Authority, PT Bursa Efek Indonesia, PT Kliring Penjaminan
             Efek Indonesia, and PT Kustodian Sentral Efek Indonesia;
           • Sustainability Reporting Standards by PT Bursa Efek Indonesia; and
           • Global Tax Reform by PT Bursa Efek Indonesia.
           Affiliation
           Mr. Mohammad Noor Rachman Soejoeti has no family or financial relationship with other members of the
           Board of Commissioners, members of the Board of Directors, as well as Main and Controlling Shareholders,
           either directly or indirectly, up to the Individual Owner.
           Statement on Independence of Independent Commissioners
           The currently appointed Independent Commissioner is serving his first term, and therefore, Avian Brands does not
           provide information regarding the statement on the independence of an Independent Commissioner having served
           for more than two terms.


Change in the Composition of Members of the Board of Commissioners and
Reason for the Change
In 2024, there was no change in the composition of Avian Brands’ Board of Commissioners. The composition of the current Board of
Commissioners is in accordance with the relevant regulations related to Avian Brands’ business activities. This steady composition reflects
the continuity of strong leadership as well as Avian Brands’ commitment to maintaining stability and continuity in strategic decision-making.

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                                                                            PT Avia Avian Tbk • 2024 Annual Report




Profile of the Board of Directors


 BOARD OF DIRECTORS:
 Robert Christian Tanoko (Director), Ruslan Tanoko (Vice President Director), Wijono Tanoko (President Director),
 Angelica Tanisia Jozar (Director), and Kurnia Hadi Sinanto (Director).
 * Notes: From left to right.




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                                COMPANY PROFILE




     WIJONO TANOKO
     President Director



     Indonesian, 72 years old.



        Term of Office and Basis of Appointment
        2021 – 2026:
        The Deed of Restatement of Shareholders’ Resolutions in Lieu of the Extraordinary General Meeting of Shareholders
        of Avian Brands No. 19 dated June 22, 2021, drawn up before Anwar, S.H., M.Kn., a Notary in Gresik Regency.

        Educational Background and Certifications
        Graduated from Kolese Santo Yusuf High School, Malang in 1972.

        Work Experiences
        • President Director of PT Tirtakencana Batamindo (2010 – 2016); and
        • President Commissioner of PT Wahana Lancar Rejeki (2013 – 2015).

        Dual Appointments
        • President Director of PT Avia Avian Industri Pipa (2014 – present);
        • President Commissioner of PT Tirtakencana Tatawarna (2014 – present);
        • Director of PT Wahana Lancar Rejeki (2015 – present);
        • President Commissioner of PT Tirtakencana Batamindo (2016 – present);
        • Commissioner of PT Solusi Rumah Praktis (2018 – present); and
        • President Director of PT Multipro Paint Indonesia (2021 – present).

        Education/Training in 2024
        • Local Macro Insights, What Indonesia’s New Leadership Means by The Hongkong and Shanghai Banking
          Corporation Limited (“HSBC”);
        • Italy Meets Indonesia, Focus on Constructions and Building Machinery Sector by the Italian Trade Agency;
        • The Forbes Asia Best Under A Billion Forum & Awards Dinner by Forbes; and
        • The Future of Route to Market in Indonesia by Bizom.

        Affiliation
        Mr. Wijono Tanoko is Avian Brands’ ultimate beneficial owner, who shares a familial and financial relationship
        with Mr. Hermanto Tanoko as President Commissioner, Mr. Ruslan Tanoko as Vice President Director, and
        Mr. Robert Christian Tanoko as Director. He is also affiliated with the Main and Controlling Shareholder of Avian
        Brands, namely PT Wahana Lancar Rejeki, in which he serves as Director. However, he has no familial or financial
        relationship with other members of the Board of Commissioners and the Board of Directors.




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                                                                       PT Avia Avian Tbk • 2024 Annual Report




RUSLAN TANOKO
Vice President Director



Indonesian, 49 years old.



   Term of Office and Basis of Appointment
   2021 – 2026:
   The Deed of Restatement of Shareholders’ Resolutions in Lieu of the Extraordinary General Meeting of Shareholders
   of Avian Brands No. 19 dated June 22, 2021, drawn up before Anwar, S.H., M.Kn., a Notary in Gresik Regency.


   Educational Background and Certifications
   • Bachelor of Science in Chemistry and Bachelor of Science in Chemical Engineering from the University of Southern
     California, Los Angeles, United States of America in 1996; and
   • Master of Engineering in Chemical Engineering from Cornell University, New York, United States of America in
     1997.

   Work Experiences
   • Marketing Director of Avian Brands (2000 – 2016);
   • Director of PT Tirtakencana Tatawarna (2006 – 2014);
   • Director of PT Tirtakencana Batamindo (2010 – 2016);
   • Director of PT Wahana Lancar Rejeki (2013 – 2015); and
   • Commissioner of PT Avia Avian Industri Pipa (2014 – 2017).

   Dual Appointments
   • President Director of PT Tirtakencana Tatawarna (2014 – present);
   • President Director of PT Wahana Lancar Rejeki (2015 – present);
   • President Director of PT Tirtakencana Batamindo (2016 – present);
   • Vice President Director of PT Avia Avian Industri Pipa (2017 – present);
   • President Director of PT Solusi Rumah Praktis (2018 – present);
   • President Commissioner of PT Bangun Bersama Solusindo (2021 – present); and
   • Commissioner of PT Multipro Paint Indonesia (2021 – present).

   Education/Training in 2024
   • Local Macro Insights, What Indonesia’s New Leadership Means by the HSBC;
   • Italy Meets Indonesia, Focus on Constructions and Building Machinery Sector by the Italian Trade Agency;
   • The Forbes Asia Best Under A Billion Forum & Awards Dinner by Forbes; and
   • The Future of Route to Market in Indonesia by Bizom.

   Affiliation
   Mr. Ruslan Tanoko is Avian Brands’ ultimate beneficial owner, who shares a familial and financial relationship
   with Mr. Hermanto Tanoko as President Commissioner, Mr. Wijono Tanoko as President Director, and
   Mr. Robert Christian Tanoko as Director. He is also affiliated with the Main and Controlling Shareholder of Avian
   Brands, namely PT Wahana Lancar Rejeki, in which he serves as President Director. However, he has no familial or
   financial relationship with other members of the Board of Commissioners and Board of Directors.


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                                 COMPANY PROFILE




     ROBERT CHRISTIAN
     TANOKO
     Director



     Indonesian, 39 years old.



        Term of Office and Basis of Appointment
        2021 – 2026:
        The Deed of Restatement of Shareholders’ Resolutions in Lieu of the Extraordinary General Meeting of Shareholders
        of Avian Brands No. 19 dated June 22, 2021, drawn up before Anwar, S.H., M.Kn., a Notary in Gresik Regency.


        Educational Background and Certifications
        Bachelor of Commerce in Information Technology from Curtin University, Bentley, Australia, in 2006.


        Work Experiences
        • Vice Director of Operations of Avian Brands (2009 – 2015);
        • Director of PT Tirtakencana Tatawarna (2014 – 2017); and
        • President Commissioner of PT Solusi Rumah Praktis (2018 – 2024).


        Dual Appointments
        • Director of PT Avia Avian Industri Pipa (2014 – present);
        • Director of PT Tancorp Surya Sentosa (2015 – present);
        • Vice President Director of PT Tirtakencana Tatawarna (2017 – present);
        • Vice President Director of PT Tirtakencana Batamindo (2017 – present);
        • Director of PT Bangun Bersama Solusindo (2021 – present);
        • Director of PT Multipro Paint Indonesia (2021 – present);
        • Chairman of the Good Corporate Governance Committee of Avian Brands (2021 – present); and
        • Vice President Director of PT Solusi Rumah Praktis (2024 – present).


        Education/Training in 2024
        Strategies for Achieving the Sustainable Development Goal Pillars by Paragon.


        Affiliation
        Mr. Robert Christian Tanoko Tanoko is Avian Brands’ Shareholder, who shares a familial and financial relationship
        with Mr. Hermanto Tanoko as President Commissioner, Mr. Wijono Tanoko as President Director, and
        Mr. Ruslan Tanoko as Vice President Director. He is also affiliated with the Main and Controlling Shareholder of Avian
        Brands, namely PT Tancorp Surya Sentosa, where he serves as Director. However, he has no familial or financial
        relationship with other members of the Board of Commissioners and Board of Directors.




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                                                                          PT Avia Avian Tbk • 2024 Annual Report




KURNIA HADI
SINANTO
Director



Indonesian, 55 years old.



   Term of Office and Basis of Appointment
   2021 – 2026:
   The Deed of Restatement of Shareholders’ Resolutions in Lieu of the Extraordinary General Meeting of Shareholders
   of Avian Brands No. 19 dated June 22, 2021, drawn up before Anwar, S.H., M.Kn., a Notary in Gresik Regency.


   Educational Background and Certifications
   Bachelor of Accounting from Airlangga University, Surabaya, in 1992.


   Work Experiences
   • Financial Accounting Manager of Avian Brands (2006 – 2010);
   • Vice Director of Finance and Accounting of Avian Brands (2010 – 2016); and
   • Corporate Secretary of Avian Brands (2021 – 2022).


   Dual Appointments
   • Director of PT Avia Avian Industri Pipa (2017 – present);
   • Director of PT Multipro Paint Indonesia (2021 – present);
   • Member of the Good Corporate Governance Committee of Avian Brands (2021 – present); and
   • Chairman of the Related Party Transaction Committee of Avian Brands (2022 – present).


   Education/Training in 2024
   Value Creation in Action to Unleash Your Growth by PricewaterhouseCoopers (“PwC”) Indonesia.


   Affiliation
   Mr. Kurnia Hadi Sinanto has no family or financial relationship with members of the Board of Commissioners, other
   members of the Board of Directors, as well as Main and Controlling Shareholders, either directly or indirectly, up to
   the Individual Owner.




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                                  COMPANY PROFILE




     ANGELICA TANISIA
     JOZAR
     Director



     Indonesian, 43 years old.



         Term of Office and Basis of Appointment
         2022 – 2026:
         The Deed of Restatement of Avian Brands’ Meeting Resolution No. 2 dated September 7, 2022, drawn up before
         Dr. Susanti, S.H., M.Kn., a Notary in Surabaya City.

         Educational Background and Certifications
         • Bachelor of Engineering from Parahyangan Catholic University, Bandung, in 2003; and
         • Professional Engineer from Parahyangan Catholic University, Bandung in 2021.

         Work Experiences
         • Head of Production of PT Tiga Arga (2003 – 2010);
         • Research & Development Manager, Trade Unit Division of PT Nipsea Paint & Chemicals (2010 – 2018); and
         • Research, Development & Innovation Director of Avian Brands (2018 – 2022).

         Dual Appointments
         -


         Education/Training in 2024
         • Socialization of INDI 4.0 Assistance by Avian Brands;
         • Adhesive Formulation by Minh Hieu Nguyen – BYK; and
         • Rheology Modifier by Brenntag.

         Affiliation
         Mrs. Angelica Tanisia Jozar has no family or financial relationship with members of the Board of Commissioners,
         other members of the Board of Directors, as well as Main and Controlling Shareholders, either directly or indirectly,
         up to the Individual Owner.



Change in the Composition of Members of the Board of Directors and Reason for the Change

In 2024, there was no change in the composition of Avian Brands’ Board of Directors. The composition of the current
Board of Directors is in accordance with the relevant regulations related to Avian Brands’ business activities. This steady
composition reflects the continuity of strong leadership as well as Avian Brands’ commitment to maintaining stability and
continuity in strategic decision-making.




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                                                                                                      PT Avia Avian Tbk • 2024 Annual Report




Shareholder Information

Shareholder List
                                                                                                                      January 1, 2024
                                               December 31, 2024
                                                                                                            (Initial Opening of Stock Trading)
     Description              Number of             Total Nominal             Share               Number of             Total Nominal         Share
                                Shares                  Value               Ownership               Shares                  Value           Ownership
                               (Shares)                 (IDR)                  (%)                 (Shares)                 (IDR)              (%)
 5% or more
 PT Tancorp Surya
                            22,674,971,000         226,749,710,000               36.60           22,674,971,000         226,749,710,000         36.60
 Sentosa
 PT Wahana Lancar
                            20,129,652,900         201,296,529,000               32.49           20,129,652,900         201,296,529,000         32.49
 Rejeki
 Archipelago
 Investment Private           3,902,748,900         39,027,489,000                6.30             3,902,748,900         39,027,489,000           6.30
 Limited
 Under 5%
 Robert Christian
                              1,425,406,300         14,254,063,000                2.30             1,425,406,300         14,254,063,000           2.30
 Tanoko
 Rudi Tanoko                  1,041,265,000         10,412,650,000                1.68             1,041,265,000         10,412,650,000           1.68
 Rony Tanoko                    497,829,300           4,978,293,000               0.80             1,041,265,000         10,412,650,000           1.68
 Treasury Stock               1,163,449,200         11,634,492,000                1.88                34,618,800           346,188,000            0.06
 Public   *)
                            11,118,233,000         111,182,330,000               17.95           11,703,627,700         117,036,277,000         18.89
 Total Issued and
                            61,953,555,600         619,535,556,000             100.00          61,953,555,600 619,535,556,000                  100.00
 Paid-Up Capital

*) Including shares owned by Mr. Wijono Tanoko, Mr. Kurnia Hadi Sinanto, and Mrs. Angelica Tanisia Jozar,


Composition of Share Ownership by Members of the Board of Commissioners and
the Board of Directors
                                                                                                             January 1, 2024
                                                              December 31, 2024                              (Initial Opening
                                                                                                             of Stock Trading)             Ownership
        Name                      Position
                                                          Number of              Share              Number of              Share            Status
                                                            Shares             Ownership              Shares             Ownership
                                                           (Shares)               (%)                (Shares)               (%)
 The Board of Commissioners
                         President
 Hermanto Tanoko                                                        0                0                         0             0                -
                         Commissioner
 Mohammad Noor           Independent
                                                                        0                0                         0             0                -
 Rachman Soejoeti        Commissioner
 The Board of Directors
 Wijono Tanoko           President Director                   2,504,200             0.00                    2,504,200         0.00             Direct
                                                                                                                                              Indirectly
                                                                                                                                               through
 Ruslan Tanoko           Vice President Director            37,724,500              0.06                20,959,300            0.03
                                                                                                                                          PT Sensasi Istana
                                                                                                                                                Warna
 Robert Christian
                         Director                       1,425,406,300               2.30            1,425,406,300             2.30             Direct
 Tanoko
 Kurnia Hadi
                         Director                               651,600             0.00                     556,600          0.00             Direct
 Sinanto
 Angelica Tanisia
                         Director                               222,400             0.00                     169,300          0.00             Direct
 Jozar




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Share Ownership by Classifications
                                                                                                                                       January 1, 2024
                                                            December 31, 2024
                                                                                                                             (Initial Opening of Stock Trading)
       Description                                                 Number of                 Share                                            Number of                Share
                                     Total Investor                  Shares                Ownership               Total Investor               Shares               Ownership
                                                                    (Shares)                  (%)                                              (Shares)                 (%)
 National Investor
 Indonesian Individual                    15,371                   4,115,116,372                    6.64                12,579                4,215,758,172                   6.80
 Pension Fund
                                                  11                 53,999,000                     0.09                         9               29,480,700                   0.05
 Foundation
 Insurance                                        12                120,484,900                     0.20                         6               26,154,700                   0.04
 Limited Company                                  83              45,640,469,594                   73.67                       60            43,982,864,110                  71.00
 Others                                             1                   353,100                     0.00                         1                     337,100                0.00
 Foreign Investor
 Foreign Individual                               12                   2,879,200                    0.00                         9                     244,100                0.00
 Limited Company                                 149              12,020,253,434                   19.40                      166            13,698,716,718                  22.11
 Total                                    15,639                  61,953,555,600              100.00                   12,830              61,953,555,600               100.00




Main and Controlling Shareholders
                  Neilson                               Audrey                            Caleb
 Ruslan                               Rudi                              Rony                                   Hermanto                                                    Muliawati
                   Fritz                                 Reis                             Royce                                          Lilyani Tanoko
 Tanoko                              Tanoko                            Tanoko                                   Tanoko                                                      Tanoko
                  Tanoko                                Tanoko                           Tanoko

 99.995%              0.005%          99.996%            0.004%        99.999%            0.001%                   82.72%                    99.86%                           70.00%



                                                                            PT Jaya                    Robert                                                       Marvin
        PT Sensasi                      PT Asiapasifik                                                                      Belinda
                                                                            Sentosa                   Christian                                                      Aditya
      Istana Warna                     Rekacipta Teknik                                                                     Natalia
                                                                          Lancarabadi                  Tanoko                                                       Pranoto
                                                                                                                                                      PT Vistra
             33.33%                             33.33%                           33.33%                    4.32%             4.32%                                   10.00%             Maria
                                                                                                                                                       Sentral
                                                                                                                                                      Harmoni                          Lavetta
                                                                                                                        Caroline                                    Marcel
                                                                                                       Melisa
                                                                                                                         Novilia                                    Satrya
                                                                                                       Patricia                                         0.14%                          10.00%
                                                                                                                        Tanoko                                     Pramono

                                                                           Minister for                    4.32%             4.32%                                   10.00%
                                                                            Finance.
                                                                           Singapore
  Lim Lie               Wijono            PT Rukun                                                                                         PT Sinar Surya              PT Marco Mega
   Tjijen               Tanoko          Rimpah Rejeki                        100.00%                                                       Sarana Sukses                   Mulia

     1.54%               50.44%                 48.03%                                                                                         50.00%                         50.00%

                                                                         GIC (Ventures)
                      PT Wira Laju           PT Sensasi                     Pte Ltd                           PT Tancorp                      PT Voka
                         Rejeki            Istana Warna                                                     Global Sentosa                   Nobelindo
                                                                             100.00%
                         73.56%                  26.44%                                                            69.39%                      30.61%



                                                                          Archipelago                                                             Robert
  Rudi             Rony               PT Wahana                                                                              PT Tancorp                           Treasury
                                                                          Investment                                                             Christian                           Public
 Tanoko           Tanoko             Lancar Rejeki                                                                          Surya Sentosa                           Stock
                                                                            Pte Ltd                                                               Tanoko

  1.68%               0.80%             32.49%                                   6.30%                                          36.60%                2.30%        1.88%             17.95%




                                                                                 PT Avia Avian Tbk


Based on the aforementioned structure, the Main and Controlling Shareholders of Avian Brands are PT Wahana Lancar Rejeki
and PT Tancorp Surya Sentosa. Meanwhile, the ultimate beneficial owners of Avian Brands are Wijono Tanoko,
Hermanto Tanoko, and Ruslan Tanoko.

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Chronology of Share Listing
On December 8, 2021, Avian Brands conducted an Initial Public Offering on the Indonesia Stock Exchange with stock code
AVIA after obtaining an effective statement from the Board of Commissioners of the Financial Services Authority based on
Letter No. S-223/D.04/2021 dated November 30, 2021. In this Public Offering, Avian Brands successfully issued a total of
6,200,000,000 shares or equivalent to 10.0075% of the issued and paid-up capital with a nominal value of IDR10 per share,
at an offer price of IDR930 per share. A total of 3,099,300 shares or equivalent to 0.05% of the total offer shares, were allocated
for the Employee Stock Allocation (“ESA”) program, demonstrating Avian Brands’ commitment to extending shareholding
opportunities to its employees.

In addition to the Initial Public Offering, Avian Brands also conducted a Private Placement by the Selling Shareholders who are
Shareholders of Avian Brands. This offering comprised 5,575,355,600 registered common shares or equivalent to 10.00% of
Avian Brands’ total issued and paid-up capital. This offer was made on the date of listing on the Indonesia Stock Exchange at the
same offer price as the Initial Public Offering. Accordingly, Avian Brands’ total shares listed on the Indonesia Stock Exchange is
61,953,555,600 shares with a nominal value of IDR10.- per share. In addition to increasing the liquidity of Avian Brands’ shares,
these transactions also consolidate Avian Brands’ position in the Indonesian capital market with strong support from
Avian Brands’ Shareholders and new investors.

On December 7, 2023, Avian Brands conducted a buyback of Avian Brands’ shares that have been issued and listed on the
Indonesia Stock Exchange in the maximum amount of 1,425,000,000 shares or approximately 2.3% of the entire issued and
fully paid-up capital. This corporate action is executed in stages within a maximum period of 18 months from the date of
execution. As of December 31, 2024, Avian Brands has repurchased 1,163,449,200 ordinary shares of Avian Brands through
the Indonesia Stock Exchange. This corporate action changed the number of outstanding shares of Avian Brands at the end of
2024 to 60,790,106,400 shares from the initial 61,953,555,600 shares.




Sharia Securities
As of the end of 2021, all traded shares of Avian Brands in the Indonesian Stock Exchange, have been designated as sharia
equity securities pursuant to a decision issued by the Financial Services Authority (Otoritas Jasa Keuangan or “OJK”).
This has resulted in Avian Brands’ shares being listed on the List of Sharia Securities (Daftar Efek Syariah or “DES”), which
represents group of securities that do not conflict with sharia principles in the capital market. This achievement underscores
Avian Brands’ commitment to conducting operations that do not conflict with sharia principles, making it a viable investment
option for investors who emphasize sharia aspects in their portfolios.

The determination of Avian Brands’ shares to be registered                  •    other products or services that conflict with
in the DES as stipulated by the OJK, namely being included                       sharia principles based on the stipulation of
in the category of securities in the form of shares issued by                    the National Sharia Board – Indonesian Ulema
Avian Brands that does not state the activities and types of                     Council; and
business, know-how, and/or the services it provides based              e. conducting other activities that are contrary to
on Sharia Principles in the Capital Market, as long as Avian                sharia principles based on the stipulation of the
Brands:                                                                     National Sharia Board – Indonesian Ulema Council;
1. does not conduct any activities and types of business            2. does not conduct any transactions that are contrary to
    that are contrary to Sharia Principles in the Capital              Sharia Principles in the Capital Market; and
    Market including:                                               3. fulfils the following financial ratios:
    a. gambling and games considered as gambling;                      a. the ratio of interest-based liabilities to total assets is
    b. ribawi financial services;                                           not more than 45%; and
    c. buying and selling of risks that involve speculation            b. the ratio of interest income and other non-islamic
        (gharar) and/or gambling (maisir);                                  income to total operating income and other income
    d. producing, distributing, trading, and/or providing:                  is not more than 10%.
        • products or services that are forbidden because
           of its contents (haram li-dzatihi);                      The inclusion of Avian Brands’ shares into the DES provides
        • products or services that are forbidden not               ease to investors as the investments made can be guaranteed
           because of its contents (haram li-ghairi),               halal and free from riba. In addition, investors are also given
           determined by the National Sharia Board –                the freedom to conduct transactions of Avian Brands’ shares
           Indonesian Ulema Council;                                as it may be undertaken on conventional exchanges and
        • products or services that can deprave one’s               sharia exchanges.
           moral and are harmful (mudarat); and/or

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Company’s Stock Index
A stock index is a statistical measure used to reflect the price movements of a selected group of stocks in the capital
market. This index may include stocks from different economic sectors or with certain characteristics, such as size of market
capitalization or liquidity. Its main purpose is to give an overview of the stock market’s performanceas a whole or of a
particular sector within a country. As of the end of 2024, Avian Brands’ shares are included in several prestigious indexes
on the Indonesia Stock Exchange, such as IDX Composite, ESGQKEHATI, SRI-KEHATI, ESGSKEHATI, JII70, IDX80, KOMPAS100,
IDXQ30, IDXSMC–LIQ, ISSI, MNC36, IDXSMC–COM, IDXBASIC, MBX, PEFINDO25, serta IDXESGL. In addition to the Indonesia
Stock Exchange indexes, Avian Brands is also listed on the MSCI Small Cap Index.

Being an ESGQKEHATI, SRI-KEHATI, and ESGSKEHATI index constituent shows that Avian Brands is committed to
sustainable management efforts that prioritize environmental, social, and good corporate governance concerns.
As a JII70 index constituent, Avian Brands’ shares are among the most liquid Sharia-compliant stocks listed on the IDX.
Constituents of the IDX80 and KOMPAS100 indexes illustrate that Avian Brands’ shares possess high liquidity and significant
market capitalization, supported by strong company fundamentals. IDXQ30 index constituent indicates that Avian Brands
exhibits relatively high profitability, good solvency, and stable profit growth, with transaction liquidity as well as strong
financial performance. Meanwhile, the IDXSMC-LIQ index portrays that Avian Brands’ shares have high liquidity and market
capitalization in the small and medium range.




Chronology of Other Securities Listing
Until the end of 2024, Avian Brands has not issued other securities such as bonds, sukuk, convertible bonds, or other securities
that are justified in accordance with the laws and regulations.




Corporate Structure

                                                         PT Avia Avian Tbk


         50.00%                             99.99%                              99.99%                           67.00%


   PT Bangun Bersama                   PT Tirtakencana                                                      PT Multipro Paint
                                                                        PT Solusi Rumah Praktis
        Solusindo                         Tatawarna                                                            Indonesia



                                            99.98%


                                       PT Tirtakencana
                                         Batamindo




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Subsidiaries, Associates, and Joint-Ventures
As of the end of 2024, Avian Brands owns 3 direct subsidiaries, 1 indirect subsidiary, and 1 joint venture. The existence of
these subsidiaries reflects Avian Brands’ strategy in expanding its presence and operational diversity, accommodating various
market needs, and optimizing synergies between entities within the group. In addition, through its joint ventures, Avian Brands
participates in collaborative investments that promote growth and exploration of new opportunities in relevant markets.
Information related to the Subsidiaries and the joint-venture is described as follows:

Direct Ownership
                                                      PT Tirtakencana Tatawarna
       Legal Basis of Establishment                          Business Sector                                Operational Status
       Deed of Establishment No. 27,
                                                          Wholesale trade of paints,
    dated July 14, 2000, drawn up before                                                                          Operating
                                                       warehousing and storage, and
      Dyah Ambarwaty Setyoso, S.H.,
                                                      self-owned or leased real estate.
           a Notary in Surabaya.
                   Address                                   Share Ownership                          Total Assets Before Elimination
     Jl. Raya Surabaya - Sidoarjo KM. 19,
      Desa Wadungasih, Kec. Buduran,                              99.99%                                    IDR4,176,481 million
    Kab. Sidoarjo, Jawa Timur, Indonesia.

                                                        PT Solusi Rumah Praktis
       Legal Basis of Establishment                          Business Sector                                Operational Status
        Deed of Establishment No. 17,
                                                      Retail trade of paints, varnishes,
 dated November 22, 2018, drawn up before                                                                         Operating
                                                     and Lacquers, as well as painting.
Anwar, S.H., M.Kn., a Notary in Gresik Regency.
                   Address                                   Share Ownership                          Total Assets Before Elimination
            Avian Brands Building
           Jl. Ahmad Yani No. 317,
                                                                  99.99%                                      IDR1,066 million
   Kel. Dukuh Menanggal, Kec. Gayungan,
    Kota Surabaya, Jawa Timur, Indonesia.

                                                     PT Multipro Paint Indonesia
       Legal Basis of Establishment                          Business Sector                                Operational Status
                                                      Paint and printing ink industry,
    Deed of Establishment No. 80, dated
                                                   varnish industry (including mastics),
     August 27, 2008, drawn up before                                                                             Operating
                                                  wholesale trade of paints, and wholesale
    David, S.H., M.Kn., a Notary in Jakarta.
                                                    trade of various building materials.
                   Address                                   Share Ownership                          Total Assets Before Elimination
       Menara Satu Sentra Kelapa Gading
               7th Floor, Room 6,
   Jl. Boulevard Kelapa Gading LA 3 No. 1,                        67.00%                                      IDR33,043 million
 Kel. Kelapa Gading Timur, Kec. Kelapa Gading,
     Jakarta Utara, DKI Jakarta, Indonesia.


Indirect Ownership
                                PT Tirtakencana Batamindo (through PT Tirtakencana Tatawarna)
       Legal Basis of Establishment                          Business Sector                                Operational Status
    Deed of Establishment No. 58, dated             Wholesale trade of various building
   September 30, 2010, drawn up before                 materials, wholesale trade of
                                                                                                                  Operating
   Rusdi Mulyono, S.H., M.Kn., a Notary in           other construction materials, and
                 Surabaya.                               retail trade of furniture.
                   Address                                   Share Ownership                          Total Assets Before Elimination
     Komplek Executive Industrial Park
                 Blok D2 No. 8,
                                                                  99.98%                                      Rp34,708 million
         Kel. Belian, Kec. Batam Kota,
   Kota Batam, Kepulauan Riau, Indonesia.


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Joint-Venture
                                                   PT Bangun Bersama Solusindo
       Legal Basis of Establishment                          Business Sector                              Operational Status
      Deed of Establishment No. 1,              Wholesale trade of cement, lime, sand, and
 dated February 1, 2021, drawn up before         stone as construction materials, building
                                                                                                              Operating
   Emmyra Fauzia Kariana, S.H., M.Kn.,             materials, as well as basic or industrial
           a Notary in Jakarta.                       chemical materials and goods.
                  Address                                   Share Ownership                        Total Assets Before Elimination
           Sequis Tower Level 15,
Jl. Jenderal Sudirman Kav. 71, Kel. Senayan,                                                               IDR53,536 million
                                                                  50.00%
  Kec. Kebayoran Baru, Kota Adm. Jakarta
       Selatan, DKI Jakarta, Indonesia.




Capital Market Supporting Institutions
and Professions

                                                        Public Accounting Firm
Public Accounting Firm                Services Provided     :
Teramihardja, Pradhono &              Audit Services        : Performed audit of Avian Brands’ Consolidated Annual Financial Statements
Chandra                                                       for the financial year ended December 31, 2024, based on auditing standards
(a member firm of Crowe Global)                               established by the Indonesian Institute of Certified Public Accountants.
AXA Tower 27th Floor, Suite 03        Non-Audit Services    : None
Jl. Prof. Dr. Satrio Kav. 18          Assignment Period     : 2024
Jakarta, 12940, Indonesia             Cost (IDR):
T: (62-21) 3005 6267                  Audit Services        : Rp700,000,000.-
F: (62-21) 3005 6269                  Non-Audit Services    : None

                                                                 Notary
Dr. Susanti, S.H., M.Kn.              Services Provided:
Ruko Office Park 1                    Prepared the deed of Minutes of the Annual General Meeting of Shareholders (“GMS”) for the financial
Jl. Bukit Darmo Golf Blok B1 No. 19   year of 2024.
Kel. Pradahkalikendal,                Assignment Period: 2024
Kec. Dukuh Pakis
Surabaya 60226, Indonesia
T : (62-31) 9914 6264

                                                  Securities Administration Bureau
PT Bima Registra                      Services Provided:
Satrio Tower, 9 A2 Floor              1. Performed data maintenance, prepared presentation of the Shareholders List (Daftar Pemegang
Jl. Prof. DR. Satrio Blok C4             Saham or “DPS”) and monthly reports;
Kuningan, Setiabudi                   2. Assisted in the organization of the Annual GMS in the context of the presentation of DPS per
Jakarta Selatan, Indonesia               recording date, attendance list, and assisted in the vote count at the GMS; and
T : (62-21) 2598 4818                 3. Assisted in the implementation of interim dividend and final dividend payments in the context of
F : (62-21) 2598 4819                    the presentation of DPS per recording date, as well as calculating the amounts of dividends and
                                         taxes for each Shareholder.

                                      Assignment Period: 2024




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Information Access
Avian Brands affirms its commitment to providing transparent and regular access to information for Shareholders and
other stakeholders. Information access management is headed and periodically updated by the Corporate Secretary and
the Investor Relations Department in accordance with the needs and applicable regulations. This ensures timely access to
relevant information by all parties involved, thereby fostering a transparent and responsive relationship between Avian Brands
and its stakeholders. The provision of information to Shareholders and stakeholders may be further accessed through:




                  Avian Brands Building
                                                                                (62-31)
                                                                                99850500/99850600
                  Jl. Ahmad Yani No. 317
                  Surabaya 60234
                  Jawa Timur, Indonesia
                                                                                www.avianbrands.com


                                                                         corsec@avianbrands.com
                                                                         investor.relations@avianbrands.com




Human Resources
Human Resources (“HR”) serves as the main foundation for Avian Brands in driving sustainable target achievement and
performance. Avian Brands recognizes that successful achievement of strategic objectives is highly dependent on the
quality and contribution of each individual in the organization. Therefore, its HR management is carried out prudently,
adhering to applicable regulations and best practice in similar industries. Avian Brands is committed to creating a productive
and comfortable working environment for all employees. This is achieved through various initiatives, including ongoing
training and skills development, employee welfare programs, and policies that promote work-life balance. These programs
are designed to encourage employees to reach their full potential and make maximum contributions to Avian Brands’ goals.

Furthermore, Avian Brands emphasizes its commitment to non-discrimination by ensuring fair and equal treatment of every
employee regardless of background, gender or other status. Avian Brands believes that diversity and inclusion are key to
realizing innovation and creativity. Therefore, Avian Brands encourages a work culture that respects differences and promotes
collaboration. By cultivating an inclusive and supportive work environment, not only does Avian Brands seek to improve overall
performance, but also to build a positive and sustainable work culture, where each individual feels valued and motivated to
contribute to the best of their abilities. Avian Brands believes that with a strong focus on HR management, it will continuously
grow and develop to confidently navigate future challenges.




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Organizational Structure of HR Management

Leading the organizational structure responsible for managing Avian Brands’ HR, is the Human Resources and General Affairs
(“HRGA”). This unit is responsible for ensuring effective and efficient HR management in all aspects, in line with Avian Brands’
Vision and Mission. Within the HRGA, there are several subunits with roles and responsibilities to support HR management,
such as units in charge of People Development, Organization Development, Recruitment, Personnel Administration, General
Affair, Industrial Relation, Human Resource Information System (“HRIS”), and Human Resource Business Partner. Further details
on organizational structure of Avian Brands’ HR management are described as follows:

                                                                    HRGA




               POD & Recruitment                                   HR Operations




    People       Organization                       Personnel                          Industrial                       HR Business
                                   Recruitment                      General Affair                        HRIS
 Development     Development                      Administration                        Relation                          Partner




HR Development

Avian Brands consistently allocates resources for HR development as an integral part of its competitive advantage and
development strategy. This commitment encompasses investment in training and professional development, as well as a focus
on improving technical and leadership skills across the organization. With a firm commitment, Avian Brands continuously
strives to achieve the objective of building a stronger and more responsive team, that is well-prepared to face the challenges
and opportunities in today’s dynamic market.

In general, HR development realized by Avian Brands for 2024 is described as follows:


                                          HR Development Strategy in 2024

                  Core Competency Training                                                                                        1
                 Mandatory training for all employees, including trainings on Company Values (CInTA), GCG,
                 Code of Conduct, etc.


                  Technical Competency Training                                                                                   2
                 Training aimed to improve employees’ technical skills, in order to boost their capabilities and performance in
                 line with Avian Brands’ needs.


                  Generic Competency Training                                                                                     3
                 Training aimed to improve employees’ non-technical skills, such as effective communication, creative and
                 critical thinking, team building, and other abilities related to individual personality development.


                 Leadership Competency Program                                                                                    4
                 A program aimed to prepare employees to become leaders through a leadership ladder program.



                 Certification and Standardization Training                                                                       5
                 Training aimed to ensure that employees’ technical and specialized skills are standardized according to their
                 job functions.




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HR Recruitment

HR recruitment is a crucial first step in ensuring organizational regeneration and sustainability. This process aims to seek
out the best candidates that fit the specific needs and values upheld by Avian Brands. With prudent and strategic selection,
Avian Brands can ensure that every recruit has the potential to contribute continuously to Avian Brands’ growth and success.

In its implementation, Avian Brands has established manpower planning at the end of each year. In compliance with
Manpower Planning, Avian Brands’ recruitment methods include 2 approaches, i.e., internal and external recruitment. Internal
recruitment encompasses promotions, transfers, and rotations of existing employees in the organization. With internal
recruitment, Avian Brands provides opportunities for employees to grow and rise to higher positions. This not only enhances
employee motivation and loyalty, but also ensures that promoted or transferred employees gain a deep understanding of
Avian Brands’ culture and operations, essential to maintaining Avian Brands’ continuity and stability.

External recruitment, on the other hand, involves open selection for qualified prospective employees. Avian Brands may
also collaborate with various external parties, such as organizing job fairs, campus recruitment, and through job portal
platforms to attract external potential candidates. This external recruitment allows Avian Brands to acquire new perspectives,
fresh skills, and specific expertise that may not be available internally, therefore enriching and strengthening the workforce.

To facilitate a more efficient and integrated recruitment process, Avian Brands also optimizes the use of digital technology.
Avian Brands has established a recruitment database on its website that supports various stages of the recruitment process,
from vacancy advertisement, candidate database storage, candidate selection, online test result storage, to job interviews that
can be conducted online. This allows for a faster and more efficient recruitment process that can reach potential candidates
from various locations without any geographical limitations.

It is important to note that the entire recruitment process in Avian Brands is conducted free of charge and in a transparent
manner, without any ethnic, religious, racial, gender, or political discrimination. This commitment is part of Avian Brands’ efforts
to ensure fair and transparent opportunities for each candidate in the selection process. Throughout 2024, Avian Brands and
its Subsidiaries recruited a total of 171 new employees placed in various positions within Avian Brands and its Subsidiaries.
Of these figures, Avian Brands recruited 90 employees, TKTW recruited 80 employees, and BBS recruited 1 employee.




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HR Composition

By the end of 2024, the number of employees of Avian Brands and its Subsidiaries (including outsourced employees)
totaled 9,387 individuals, an increase of 9.61% compared to 8,564 individuals in 2023. Detailed composition of employees of
Avian Brands and the Subsidiaries is presented below:

                                                        2024                                                                     2023*
     Category               Avian                              Subsidiary                            Avian                              Subsidiary
                            Brands         TKTW        TKBI        SRP       BBS        MPI          Brands         TKTW        TKBI       SRP        BBS        MPI

 Number of Employees by Gender
 Male                        1,583          5,593        37          1          5        44           1,458           5,269       32          3          4        56
 Female                        239          1,860        10          0          4        11             228           1,488         8         0          5        13
 Total                       1,822          7,453        47          1          9        55           1,686          6,757        40          3          9        69
 Number of Employees by Position
 Board of
                                  5               1        0         1          1          1               5               1        0         2          1          1
 Directors**
 Deputy Director                  5             12         0         0          1          1               5             12         0         0          1          1
 Manager                         68            188         1         0          5          6              66            176         1         1          5          7
 Supervisor                    131             588         3         0          1          5              75            576         4         0          0          6
 Staff                         424             237         0         0          1        32             464             230         0         0          2        35
 Outsourcing                 1,189          6,427        43          0          0        10           1,071           5,762       35          0          0        19
 Total                       1,822          7,453        47          1          9        55           1,686          6,757        40          3          9        69
 Number of Employees by Age
 18 – 24 Years Old             348          1,246         8          0          0          2            355           1,111         6         0          0          2
 25 – 34 Years Old             943          3,884        22          0          1        30             828           3,505       17          0          2        49
 35 – 44 Years Old             301          1,933        12          1          2          8            302           1,784       14          2          2          6
 45 – 54 Years Old             198             355        5          0          5        12             179             327        3          0          4          9
 >55 Years Old                   32             35        0          0          1          3              22             30        0          1          1          3
 Total                       1,822          7,453        47          1          9        55           1,686          6,757        40          3          9        69
 Number of Employees by Education
 Master Degree                   20             13        0          0          2          0              19             14        0          1          2          0
 Bachelor Degree               329          1,595         6          1          6        25             315           1,508        6          2          6        27
 Diploma (D3)                    22           300         0          0          0          6              19            282        0          0          0          4
 ≤High School
                             1,451          5,545        41          0          1        24           1,333           4,953       34          0          1        38
 and Equivalent
 Total                       1,822          7,453        47          1          9        55           1,686          6,757        40          3          9        69
 Number of Employees by Employment Status
 Permanent
                               537            842         4          1          8        33             527             862        5          3          8        25
 Employee
 Non-Permanent
                                 96           184         0          0          1        12               88            133        0          0          1        25
 Employee
 Outsourcing                 1,189          6,427        43          0          0        10           1,071           5,762       35          0          0        19
 Total                       1,822          7,453        47          1          9        55           1,686          6,757        40          3          9        69

* Data restated.
** Calculation on the number of members of the Board of Directors of the Subsidiaries is not done separately, in order to avoid double counting. Members of
   the Board of Directors serving in Avian Brands are not double counted for their dual positions in the Subsidiaries, therefore, this table contains members of
   the Board of Directors of the Subsidiaries that are recorded as “0” or “1”. This reflects the existence of the members of the Board of Directors in the Subsidiaries,
   but administratively the calculation is being done at Avian Brands as the Parent Entity.
Notes    :
TKTW     : PT Tirtakencana Tatawarna
TKBI     : PT Tirtakencana Batamindo             BBS     : PT Bangun Bersama Solusindo
SRP      : PT Solusi Rumah Praktis               MPI     : PT Multipro Paint Indonesia




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Competence Development
Competence development is one of the main pillars of                         To achieve optimal results, Avian Brands does not only
Avian Brands’ HR management strategy. In line with                           rely on internal resources in implementing competence
Avian Brands’ growth, employee competence development                        development programs. Program implementation also
becomes increasingly crucial to ensure that each                             engages qualified external parties with expertise in their
individual can make maximum contribution to achieving                        respective fields. Cooperation with reliable external partners
of Avian Brands’ objectives. Therefore, Avian Brands                         enables Avian Brands to provide more comprehensive
and its Subsidiaries have continuously implemented                           and up-to-date training and education to employees.
competence development programs, which consist of                            These programs are designed to equip employees with
basic and technical competence improvement programs                          the latest knowledge and skills, so that they can face
designed to meet specific needs in various fields of work.                   increasingly complex and dynamic business challenges.
With these comprehensive and sustainable competence                          In addition, every employee is given equal opportunity to
development programs in place, employees are able to not                     participate in competence development programs in their
only improve their productivity, but also adapt quickly to                   respective fields.
industry changes and innovations. This will ultimately boost
overall performance and ensure that Avian Brands remains                     Throughout 2024, Avian Brands and its Subsidiaries
competitive and capable of achieving sustainable growth.                     organized and enrolled a total of 42,345 participants in
                                                                             482 competence development programs. Further details
                                                                             are described as follows:

                                                                                                                            Number of
       Type of                                                                                        Number of
                                                                                                                           Competence
    Competence               Target of Competence           Appointment of Number of                 Competence
                                                                                                                           Development
    Development                  Development                 Participants  Participants *)           Development
                                                                                                                              Hours
      Program                                                                                         (Program)
                                                                                                                              (Hour)
 Basic Competence           To polish skills and            Staff – Deputy           10,090               214                  22,637.5
                            teach norms to                  Director
                            support employees in
                            implementing of their
                            duties and responsibilities.
 Technical Competence       To certify and improve skills   Staff – Deputy           32,255               268                       53,652
                            that can support the work       Director
                            of employees.

*) Each employee may participate in more than one competence development program.



Standardization of HR Management

Avian Brands is committed to devoting full attention to                      goals. In 2024, Avian Brands evaluated the effectiveness
HR management, which is not only limited to employee                         of the Standard Operating Procedures (“SOP”) for the
competence development, but also entails continuous                          entire organization, consisting of 23 SOPs, 12 standard,
efforts to improve the overall HR management system.                         and 123 forms. Of these figures, 17 SOPs, 8 standards,
By conducting in-depth analysis and periodic reviews                         and 42 forms are new standards formulated in 2024 within
of the implemented standards, Avian Brands ensures                           the MPI scope, while 4 SOPs, 2 standards, and 8 forms
that its HR management system remains relevant                               are reviews of existing standards within Avian Brands.
and adaptive to industry changes and developments.                           Meanwhile, TKTW has reviewed 2 SOPs, 2 standards, and
This measure ensures that all aspects of HR management                       43 forms, and issued 30 new forms.
are aligned with Avian Brands’ strategic plans, thus
supporting the achievement of predetermined long-term




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Complaint Management
Avian Brands is committed to maintaining and fostering                  Each complaint submitted shall be fully addressed and
healthy and harmonious working relationships, both                      followed up, either internally by the immediate superiors
between Avian Brands and employees as well as among the                 jointly with the relevant employee, or by a dedicated
employees themselves. To achieve this conducive working                 Complaint Team specifically established to handle more
environment, Avian Brands has designed and implemented                  complex issues. If at this stage the complaint is yet to
a complaint management system, representing a systematic                be resolved, Avian Brands will escalate the complaint
and transparent procedure to handle various employee                    by involving the Bipartite Cooperation Institution and
complaints. This system allows each employee to submit                  Top Management, to sit together to negotiate and seek the
their complaints through 2 methods, adjusted to their needs             best solution. This process ensures that any issues employees
and convenience, i.e. through direct verbal discussions                 face are dealt with seriously and appropriately, to maintain
with their superiors, or by filling out survey forms, that are          a harmonious and productive working relationship. It also
accessible online or offline through suggestion boxes placed            reflects Avian Brands’ commitment to employee well-being
in various strategic locations.                                         and the significance of creating a comfortable working
                                                                        atmosphere, in which every voice and complaint is heard
                                                                        and followed up with concrete measures.

In 2024, Avian Brands conducted 2 employee complaint survey, with a total of 191 respondents participating. In addition
to the complaint survey, in 2024 Avian Brands also conducted 64 employee satisfaction survey regarding the services of
the Human Resources Department, with the following results:



                            Total Percentage of Service Satisfaction Score (Complaint Management)

                                                     61.78%
  Category Percentage (%)




                                                                     19.90%
                                14.66%


                                                                                         2.09%               1.57%




                              Very Satisfied         Satisfied   Slightly Satisfied    Dissatisified     Very Dissatisfied




Employee Turnover

Avian Brands is committed to creating a work environment that promotes employee development and well-being, as a key
strategy to reduce employee turnover. Avian Brands understands that investing in employee development is not simply
about enhancing individual satisfaction, but also about building solid relationships between employees and Avian Brands.
By providing access to career development opportunities, continuous training programs relevant to the needs of the industry,
and promoting an inclusive and collaborative work culture, Avian Brands aims to cultivate conditions where every employee
feels valued, supported, and afforded the opportunities to grow.




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These measures help Avian Brands retain committed and experienced employees, and boost motivation within the entire
organization. Avian Brands believes that providing appropriate support and facilitating the development of each individual’s
potentialcan build a strong and productive team. This constitutes a part of Avian Brands’ commitment to build a solid
foundation for its sustainable growth, by reducing employee turnover and optimizing service quality and overall performance.
Information on the employee turnover rate for Avian Brands and its Subsidiaries is described as follows:

                                                                      2024*)                                                  2023*)
                   Source                                                       Percentage                                               Percentage
                                                        Total                                                    Total
                                                                                    (%)                                                      (%)
     Retirement                                             5                         2.25                            9                        6.77
     Resignation                                           97                        43.69                           73                       54.88
     Termination of Employment                             82                        36.94                           42                       31.58
     Employment Status Change                              38                        17.12                            6                        4.51
     Deceased                                               0                             0                           3                        2.26
     Total Employee Turnover                             222                       100.00                          133                      100.00
*)
     The measurement of the employee turnover rate above includes permanent employees of Avian Brands and its Subsidiaries. Avian Brands does not measure
     the turnover rate for outsourced employees, given the high fluctuation of outsourced employees depending on the increase or decrease in total production.



Employee Performance Evaluation

Employee performance evaluation is a process designed by Avian Brands to ensure that each team member carries out their
duties and responsibilities with high professionalism. Avian Brands assesses employee performance based on their ability
to achieve the predetermined targets in accordance with their respective skills and positions. In addition to quantitative
work output, this approach also takes into account employees’ quality of work, contribution to the team, and competence in
performing daily tasks.

Performance evaluation processes are conducted on a periodic and structured basis in order to evaluate achievements and
discuss further opportunities for development. The feedback provided in these evaluations not only aims to identify strengths
and development areas, but also to provide the necessary support for employees to reach their full potential. Avian Brands
believes that this approach not only ensures optimal service quality and achievement of corporate goals, but also creates
a supportive and fair work environment oriented towards employee development. This is consistent with Avian Brands’
commitment to creating a workplace that promotes growth, where every individual can thrive and contribute to achieving
Avian Brands’ vision and mission.

The indicators used for performance evaluation are described as follows:


                                                                    PERFORMANCE
         COMPETENCE MATRIX                                                                                                 ASSESSMENT
                                                                      APPRAISAL




       The process of measuring                              The process of measuring                             The process of measuring
       technical competence fulfillment                      competence      fulfillment   to                     potential and performance
       and development plans to                              support job functions, including                     is   conducted      periodically
       support technical job functions.                      performance       achievements,                      using assessment tools as a
                                                             work culture (CInTA), general                        consideration   for    granting
                                                             competencies, work discipline,                       promotion and talent mapping.
                                                             and leadership.




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HR Development Strategy in 2025

Heading into 2025, Avian Brands intends to maintain its commitment to HR development as a priority in its growth
strategy. Avian Brands has planned several initiatives to strengthen team capacity by developing industry-relevant
technical skills, improving leadership capabilities, and providing sustainable career opportunities. This strategy will solidify
Avian Brands’ foundation to navigate the changes and complexities of the ever-changing market, as well as maintain
a competitive edge in the market.

In general, HR development realized by Avian Brands for 2025 is described as follows:
1. Talent Management and Planning System
    A process designed by Avian Brands to manage, develop, and maximize HR potential, both for present and future needs.
    With a carefully planned approach, this system ensures optimal contribution from each employee while preparing for
    upcoming challenges, thereby contributing to the sustainable achievement of Avian Brands’ objectives.
2. Corporate Culture Infiltration and Campaigns
    Corporate culture infiltration and campaigns are designed to reinforce the implementation of core values and shared
    practices across operations. A solid corporate culture lays the foundation for employees’ mindset and behavior, while
    simultaneously solidifying Avian Brands’ image in the eyes of the public. Through a systematic approach and continuous
    campaigns, these values are integrated into every aspect of operations, creating harmony between Avian Brands’ Vision,
    employee conduct, and external perceptions.
3. Employer Branding Program
    A strategy to build and maintain Avian Brands’ reputation as an excellent employer. This program aims to attract potential
    job seekers, retain the loyalty of existing employees, and reinforce positive perceptions among key stakeholders.
    Through a well-planned and sustainable approach, Avian Brands is able to showcase its values, work culture, and
    competitive advantages, thereby strengthening its image as an ideal and reliable workplace.




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Information Technology
Avian Brands views Information Technology (“IT”) as essential in supporting all business and operational activities.
For Avian Brands, IT is more than just an instrument, but also acts as a key pillar in achieving Avian Brands’ strategic targets.
The availability of IT enables Avian Brands to conduct business processes more efficiently and effectively, as well as to facilitate
more accurate decision-making based on valid and structured data. Through optimal IT implementation, Avian Brands can
improve operational efficiency throughout the entire production chain, particularly in the large-scale manufacturing industry,
which requires high speed and precision at every stage.

Furthermore, Avian Brands continuously strives to improve its IT quality and performance in terms of speed, accuracy,
reliability, and stability of the flow of information and communication. This is a continuous effort to support automation
of various internal processes, enabling smoother and more coordinated Avian Brands’ operations. By integrating more
advanced IT, Avian Brands is not only able to respond quickly to market changes, but also improve its overall competitiveness.
Avian Brands’ commitment to IT development and utilization reflects its long-term vision to constantly innovate and maintain
its position as a leading player in the national paint industry.



IT Governance

Avian Brands consistently implements IT governance based on the ISO 27001 standard of the Information Security Management
System, to ensure comprehensive information protection and security. The IT Department annually conducts an annual
management review involving all parties related to Avian Brands’ IT management, with Top Management and Representative
Managers participating in the evaluations. In this management review the desired objectives related to IT management are
presented, such as Key Performance Indicators (“KPIs”), as well as the realization and sustainability of its future implementation.
One of the targets related to Avian Brands’ IT management is the security aspect, focusing on preventing operational disruptions
and protection from virus and malware attacks.

As an anticipatory measure against security threats, Avian Brands has formulated detailed mitigation procedures in accordance
with the requirements of ISO 27001. Some of the strategic measures implemented by Avian Brands are described as follows:
1. Access Control Management, where Avian Brands ensures IT access security by implementing encryption standardization,
    conducting annual user access reviews, and managing super user access to maintain data confidentiality and integrity;




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                                                             2. Annual IT Internal Audit, where this regular audit works
                                                                to identify potential risks and ensure the conformity of
                                                                security procedures with established standards;
                                                             3. Business Continuity, where Avian Brands ensures
                                                                operational continuity through device redundancy,
                                                                maintenance, periodic monitoring of data centers, and
                                                                implementing technology that supports business continuity;
                                                             4. Disaster Recovery Plan (“DRP”), which serves as an
                                                                anticipatory measure for disasters or major disruptions,
                                                                prepared by Avian Brands by establishing a disaster recovery
                                                                center at Avian Innovation Center and preparing a recovery
                                                                plan to ensure that operations can return to normal as soon
                                                                as possible;
                                                             5. Backup and Data Restore, which becomes Avian Brands’
                                                                regular daily agenda to maintain data availability, followed
                                                                by a restore simulation to ensure data integrity and reliability;
                                                                and
                                                             6. Annual Disaster Simulation, where Avian Brands conducts
                                                                simulations of natural disasters and failover scenarios annually
                                                                to test system preparedness in emergencies.




These measures are part of the various mitigation procedures that Avian Brands has in place, in accordance with the ISO 27001
standard, designed to minimize the risk of disruption and ensure safe and reliable business continuity.



Information Security Management System

Avian Brands understands that information security is more than just a necessity, but also an essential foundation for
maintaining business sustainability and stakeholders’ confidence. Avian Brands realizes this commitment by implementing
the PT Avia Avian Tbk Information Security Management System Policy, which has been effective since July 1, 2024.
Based on this policy, Avian Brands constantly carries out a continuous improvement process of the information security
management system, by:
1. Maintaining data confidentiality, integrity, and availability by responsibly managing all information assets
    (including personal data) and taking all precautions against unauthorized disclosure, loss, and corruption of data;
2. Taking corrective actions to handle and prevent information security incidents and ensuring continuous improvement of
    the information security management system;
3. Improving employee competence by providing information security training, providing infrastructure, and raising
    awareness of the value of responsible information asset management; and
4. Complying with applicable local, regional, and national laws and regulations related to information security.

Avian Brands constantly integrates this policy into its day-to-day business processes, ensuring that every operational activity
is underpinned by a reliable, transparent and secure system. In addition, this policy has also been communicated to all
levels of management to ensure that all employees are aware of in documenting, maintaining, implementing, periodically
reviewing, and providing information on the information security management system to related parties. These efforts not
only aim to protect Avian Brands’ information assets, but also to promote customer satisfaction, ensure excellent service
quality, and create added value for all stakeholders.




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IT Development in 2024

Ahead of the year 2024, Avian Brands was committed to further enhancing the role and contribution of IT in supporting all
operational and strategic aspects of Avian Brands. Amid increasingly fast and complex industry dynamics, IT development
becomes a key priority to ensure more efficient, accurate, and integrated business processes. Avian Brands believes that by
leveraging the latest IT innovations, Avian Brands can optimize data-driven decision-making, accelerate process automation,
and strengthen the reliability of its internal communication system. The IT development that Avian Brands successfully realized
throughout 2024 is described as follows:
1. Implementation of Warehouse Management System for Raw Materials (“WMS-RM”)
    A warehouse management system that enables Avian Brands to effectively manage raw material stocks in the warehouse,
    with advantages as described as follows:
    a. Facilitating placement of raw materials in the warehouse using a racking system, allowing proper placement of items;
    b. Facilitating retrieval of raw materials for production, eliminating errors in retrieval of items in shipments and allowing
        fifo to be carried out properly; and
    c. Improving employee performance and productivity, particularly those working in the warehouse. Items placed on
        shelves and those to be retrieved from shelves can be efficiently accessed, thereby optimizing the processing time as
        the system already provides suggested layouts for those items.
2. Regeneration of Warehouse and Plant Factory Infrastructure Installation
    Modernizing through the incorporation of the latest IT solution with several advantages:
    a. Utilizing data lines, telephones, and fiber optics to facilitate seamless communication and data flow. Using routers
        to preemptively counteract virus spread and firewalls to regulate security, which ensures more accurate data
        communication and well-maintained data security;
    b. Centralizing CCTV systems which allows for centralized monitoring and maintenance. In case of disruptions, swift and
        efficient solutions can be implemented, enhancing the security of goods and facilitating supervision; and
    c. Minimizing downtime during maintenance activities and facilitating reconstruction in the event of location expansion
        or development to increase storage capacity in the Warehouse or production capacity in the Plant.
3. Improvements to Sales Force Automation (“SFA”) Application
    Improvements to the SFA application, a system supporting the sales team’s tasks, with several advantages:
    a. Developing the application to effectively accommodate the latest technologies. Additionally, ensuring proper
        compatibility with the latest hardware;
    b. Accelerating incoming order processing speed;
    c. Simplifying supervision and device control, as devices cannot be turned off during business hours; and
    d. Implementing preventive measures to minimize or avoid fraud, such as log files or audit trails used for analysis and
        monitoring of events.




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4. Development of HR Management System (“HRMS”) Application
   Continuously innovating in human resource management is a crucial step for Avian Brands, as it aims to remain competitive
   and efficient in the digital era. In this context, we have developed the Human Resource Management System (“HRMS”) -
   a revolution in how we support and manage our team, with several advantages:
     a. Paperless Operation, Improved Service Quality:                d. Fast Data Processing: HRMS helps us quickly
        HRMS enables our employees to handle all their                   process and present data in easily understandable
        administrative needs on a digital and paperless                  report formats, thus helping us make decisions
        basis, saving us from piles of physical documents,               based on accurate data;
        and improving the quality of service we provide to            e. Better Information Distribution: We can easily
        our team;                                                        distribute information to other departments or
     b. Real-Time Reporting: We can access real-time                     directly to relevant employees, ensuring that
        reports of all ongoing processes, thus giving us                 everyone has access to the information they need;
        a clearer view of what happens in our team and                f. Improving Team Performance: HRMS assists leaders
        allowing us to make more timely decisions;                       and managers in monitoring and evaluating team
     c. Documentation        Efficiency:    Documentation                performance, providing insights into individual and
        processes become easier and more efficient,                      collective achievements and areas for improvement.
        allowing us to save valuable time and allocate more           g. Improving Discipline: Integrating employee
        resources to strategic activities;                               attendance data with automatic notifications
                                                                         improves employee attendance, positively affecting
                                                                         operational productivity and efficiency.


IT Development in 2025

Looking ahead to 2025, Avian Brands continues reinforcing its commitment to IT development as a key foundation for
fostering innovation and growth. With the ever-increasing pace of changes in the digital world, Avian Brands sees this year
as a strategic opportunity to expand and deepen IT use in all operations. Avian Brands’ main focus is on implementing
technology that not only improves efficiency and productivity, but also paves the way for a more comprehensive digital
transformation. Through sustainable IT development, Avian Brands is determined to cement its position as an industry
leader, while creating significant added value for all stakeholders. Several IT development plans that will be realized by
Avian Brands in 2025, are described as follows:
1. Vulnerability Management
    Vulnerability Management is a process carried out by Avian Brands to analyze, identify, and classify the levels of risks of
    system vulnerabilities, which allows Avian Brands to minimize the risks associated with information system vulnerabilities.
    Avian Brands will implement the following measures related to Vulnerability Management:
    a. Identifying all existing information assets, such as hardware, software, data, and networks, allowing Avian Brands to
        assess and identify weaknesses in the system;
    b. Categorizing vulnerabilities based on risk levels to determine response priorities;
    c. Formulating a clear policy for vulnerability management, including procedures to report and address identified
        vulnerabilities;
    d. Conducting ongoing monitoring to detect new vulnerabilities, as well as reviewing and updating policies and
        procedures as necessary;
    e. Recording all findings, corrective actions, and policies for future reference; and
    f. Conducting periodic penetration testing to test the system’s resistance to attacks.




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2. Backup System Management
   In order to effectively manage all backup system activities within Avian Brands, Avian Brands deems it necessary to
   conduct strict monitoring of the backup schedule, as well as continuous maintenance to ensure that each backup process
   runs smoothly and successfully. A good Backup System Management not only serves as a data protection tool, but is
   also a critical element in maintaining Avian Brands’ operational continuity. The benefits of implementing Backup System
   Management are described as follows:
   a. Maintaining backup data properly, to ensure complete data recovery in the event of data corruption or loss;
   b. Faster recovery of damaged or lost data by minimizing factors of data loss; and
   c. Maintaining a smooth process of Avian Brands’ operations to support the availability of the required data.
3. User Awareness of Cyber Threats
   Avian Brands is committed to raising user awareness as a vital part of information system security in order to respond
   to the increasing cyber threats. The program will focus on continuous education and implementation of stricter safety
   procedures. By raising awareness among all employees, Avian Brands aims to build a strong cybersecurity culture to
   minimize the risk of attacks and protect the integrity of Avian Brands’ data. The benefits related to increasing employees’
   user awareness are described as follows:
   a. Employees are more aware of cyber threats, such as phishing, malware, and ransomware, and are more cautious in
       their online activities, thereby reducing their chances of falling victim to a cyberattack;
   b. Trained employees can recognize and report threats faster, enabling a more effective response to mitigate the impact
       of an attack;
   c. Companies with effective cybersecurity awareness programs can build confidence among their customers and
       business partners, thereby reinforcing their reputation as security-conscious entities; and
   d. Raising employee awareness will help create a strong security culture within Avian Brands, where every employee
       feels responsible for protecting Avian Brands’ assets and data.




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     Management
       Discussion
     and Analysis




  “Amidst the economic and business dynamics
       unfolding throughout 2024, Avian Brands
       has successfully maintained its position in
   the national paint industry through effective
 implementation of various strategic measures.
More extensive marketing and strengthening of
  brand image helped improve operational and
    financial performance. This achievement not
  only reinforces Avian Brands’ market position,
       but also enables Avian Brands to continue
         delivering added value to stakeholders,
   including through continuous distribution of
                      dividends to Shareholders.”


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                                                MANAGEMENT DISCUSSION AND ANALYSIS




Economic Overview
The year 2024 was a challenging time for the global economy. Following a solid growth in 2023, the global economy
witnessed certain dynamics, caused by tightening monetary policies in many countries, financial market volatility, and
persistent geopolitical tensions. The International Monetary Fund (“IMF”) in its World Economic Outlook has noted that the
global economy was projected to grow by 3.2% in 2024, lower than the 3.3% growth in 2023. This downturn was attributed to
continued restrictive monetary policies in advanced economies as well as the increasing fragmentation of global trade which
triggered economic uncertainty.

In the trade sector, the growing global economic fragmentation, protectionism, and geopolitical tensions have further
impeded trade flows and disrupted international supply chains, particularly for Emerging Market Economies (“EMEs”). The shift
from multilateral trading systems towards more limited bilateral agreements, along with potentially heavy tariffs imposed by
the United States, has only heightened uncertainty in the global economy. Nonetheless, global inflation was projected to show
a downward trend from 6.2% in 2023 to 5.2% in 2024, due to lessening of pressures on global supply chains as well as more
disciplined monetary policy.

Meanwhile, Indonesia continued to exhibit favorable economic resilience. Based on a report by the Statistics Indonesia
(Badan Pusat Statistik), the Indonesian economy grew by 5.03% in 2024, slightly lower than the 5.05% in 2023. In terms of
business sectors, the construction sector recorded the highest growth at 7.02%, followed by the other sectors at 6.30%,
and the mining and quarrying sector at 4.90%. In terms of expenditure, the highest growth was recorded by consumption
of Non-Profit Institutions Serving Households (Lembaga Non-Profit yang Melayani Rumah Tangga or “LNPRT”) at 12.48%,
government consumption at 6.61%, and household consumption at 4.94%. Meanwhile, exports of goods and services grew by
6.51% in 2024. In terms of financial sector, Rupiah exchange rate remained stable despite external pressures, with sufficient
foreign exchange reserves to sustain economic stability.

Source:
• World Economic Outlook October 2024 edition, International Monetary Fund;
• The 2024 Indonesian Economic Report, Bank Indonesia; and
• Official Statistics News (Berita Resmi Statistik), Statistics Indonesia (Badan Pusat Statistik).




Industry Overview
In parallel with the national economic resilience, domestic paint industry continued to demonstrate steady growth in 2024,
backed by strong demand from the construction, property, and manufacturing sectors. Data from the Indonesian Paint
Manufacturers Association (Asosiasi Produsen Cat Indonesia or “APCI”) revealed that total paint consumption in Indonesia
reached 1.3 million metric tons, with per capita consumption averaging approximately 4.5 kg. While this suggests a vast
market potential, Indonesia’s per capita consumption is still lower than that of its neighbors, such as Thailand and Malaysia at
8 kg and 12 kg per capita, respectively. Moreover, the trend of opting for environmentally friendly paints with low-emission,
water-based technologies is becoming increasingly popular, in line with the growing awareness of sustainability.

Despite positive outlook for the paint and chemical industry, the main challenges lie in the fluctuation of raw material prices,
particularly resin, pigments, and solvents, which are largely imported. Additionally, global trade fragmentation and protectionist
policies from several raw material-supplying countries may impact supply chain stability. However, growth opportunities
remain open with innovations in water-based paint technology, heat-resistant coatings, and anti-pollution paints, which are
increasingly in demand. Furthermore, government regulations promoting the use of environmentally friendly chemicals and
products with higher domestic content offer advantages for manufacturers to innovate.

Source:
• The 2024 Indonesian Economic Report, Bank Indonesia; and
• Data from Indonesian Paint Manufacturers Association (Asosiasi Produsen Cat Indonesia or “APCI”) cited by Kompas.com.




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Operational Overview

Operational Overview by Operating Segments

Avian Brands classifies its operating segments with reference to the Statements of Financial Accounting Standards
(Pernyataan Standar Akuntansi Keuangan or “PSAK”) 5 on Operating Segments as stated in the Consolidated Financial
Statements of PT Avia Avian Tbk and its Subsidiaries for the financial years ended December 31, 2024 and 2023 audited by
Public Accounting Firm Teramihardja, Pradhono & Chandra (a member firm of Crowe global) in Note No. 35 on Segment
Information. Based on the above, Avian Brands’ operating segments are divided into 2 segments, namely the architectural
solutions segment and the trading goods segment.

In the Consolidated Financial Statements of PT Avia Avian Tbk and its Subsidiaries, operating segment reporting is used by the
management to evaluate operating performance and make strategic decisions. Each segment is reported separately to provide
clear and transparent information about each segment’s contribution to the overall financial performance of Avian Brands.
Information regarding the performance of both operating segments is described as follows:

Architectural Solutions Segment
Architectural Solutions Segment is our operating segment that focuses on manufacturing, distributing, and trading wall paints,
wood and metal paints, waterproofing, wood treatments, glues, roofing paints, and instant cement products. Most products in
this operating segment are also commonly referred to as decorative paints. In the architectural solutions segment, we play a
role as a manufacturer that produces various product variants. Meanwhile, the distribution process of these products to retail
stores is performed by PT Tirtakencana Tatawarna and third-party distributors.




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Profitability and Contribution of Architectural Solutions Segments
                                                                                           (in millions Rupiah, unless otherwise stated)

                                                                                                 Increase (Decrease)
                      Description                       2024               2023             Nominal                Percentage
                                                                                          (Million IDR)                (%)
 Net Revenues                                         5,847,703           5,618,025            229,678                  4.09
 Cost of Goods Sold                                  (2,852,891)         (2,686,054)         (166,837)                  6.21
 Gross Profit                                         2,994,812           2,931,971             62,841                  2.14


The net revenues of architecture solution segment in 2024 reached IDR5,847.70 billion, an increase of 4.09% compared to
IDR5,618.03 billion in 2023. Meanwhile, the cost of goods sold recorded by the architectural solutions segment in 2024 reached
IDR2,852.89 billion, an increase of 6.21% compared to IDR2,686.05 billion in 2023. Thus, the gross profit of the architectural
solutions segment in 2024 increased by 2.14% to IDR2,994.81 billion from IDR2,931.97 billion in 2023.

Trading Goods Segment
Trading Goods Segment is our operating segment that focuses on distributing and selling pipes, furniture, and supporting
products that are required in painting processes, such as paint rollers, paint brushes, tapes, and sandpapers. In the trading
goods segment, the manufacturing process is performed by other companies outside Avian Brands. However, the sales
and distribution process of these products are conducted by PT Tirtakencana Tatawarna and third-party distributors.
This segment proved to share strong synergies with the architectural solutions segment, as 84.27% of our architectural
solutions segment customers also sell our trading goods products.

Profitability and Contribution of Trading Goods Segments
                                                                                           (in millions Rupiah, unless otherwise stated)

                                                                                                 Increase (Decrease)
                      Description                       2024               2023             Nominal                Percentage
                                                                                          (Million IDR)                (%)
 Net Revenues                                         1,623,653           1,398,857           224,796                  16.07
 Cost of Goods Sold                                  (1,277,715)         (1,147,492)          130,223                  11.35
 Gross Profit                                           345,938             251,365            94,573                  37.62


The net revenues of trading goods segment in 2024 reached IDR1,623.65 billion, an increase of 16.07% compared to
IDR1,398.86 billion in 2023. Meanwhile, the cost of goods sold recorded by the trading goods segment in 2024 reached
IDR1,277.72 billion, an increase of 11.35% compared to IDR1,147.49 billion in 2023. Thus, the gross profit of trading goods
segment in 2024 increased by 37.62% to IDR345.94 billion from IDR251.37 billion in 2023.



Paint Manufacture Performance

Paint is Avian Brands’ primary product, produced in its two manufacturing facilities. Avian Brands remains committed to
consistently delivering the highest quality paint as part of its dedication to customer satisfaction. Moreover, the presence
of skilled workers, supported by advanced machinery and technology, enables Avian Brands to continuously innovate in
developing sustainable and cutting-edge paint products. This enables Avian Brands to not only meet the growing market
demand, but also maintain high standards of quality and consistency expected by customers.

Through its innovations, Avian Brands brand continues to deliver excellent, industry-leading products. Investments in research
and development have resulted in improved paint formulas that are more environmentally friendly and last longer, all of
which have been well received by the market. With focused strategies and rigorous execution, Avian Brands is confident in
maintaining and even improving its paint manufacturing performance in the future and strengthening its position as the
leader in the national paint industry.




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Paint Manufacturing Process Flow


                                     SILO                                     RESIN
                                    RESIN                                    REACTOR


             GRINDING
             MACHINE




                                                 HIGH SPEED                   SILO
                                                 DISPRESER                  POWDER




                     COLOUR
                    MATCHING




   QUALITY
   CONTROL


                                                                                             CAN MAKING
                                                                                              MACHINE
                                   FILLING AND
                                     PACKING




  WAREHOUSE                                                                                  DISTRIBUTION




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Avian Brands’ paint manufacturing process involves using raw materials purchased from external parties and raw materials
produced in-house by Avian Brands. Among the raw materials produced in-house by Avian Brands are resins and pigments.
Avian Brands also produces calcium raw materials, through its sister company, PT Panca Kalsiumindo Perkasa.

Avian Brands’ paint manufacturing process begins with the processing of the base material in the resin reactor, in which
resin is processed into the main components of paint. The processed resin is then stored in resin silos, while other powdered
materials are stored in powder silos. The next process involves mixing the resin and powder using a high-speed dispenser
machine (“HSD”) to produce a homogeneous mixture of based paint in accordance with the specified paint formula.
Meanwhile, the pigments are processed using grinding machines to achieve smooth and uniform texture, which results in paste.
Next comes the mixing of primer and paste through the mixing process to achieve the desired paint and color specifications.
The mixed product then undergoes testing in the quality control laboratory to ensure that all standards and quality parameters
are met. This is followed by a color-matching process to ensure that the paint color aligns with the predetermined specifications.

Once all quality and color criteria are fulfilled, the paint is packaged using can-making machines. At this stage, Avian Brands
also ensures that the packaging is always neat and secure, in line with the specifications. Each can is labeled with product
information, including the paint code, color, and batch number. Additionally, details regarding product health and safety,
as well as its environmental impacts, are also provided. Once the filling and packaging processes are complete, the products
are sealed and prepared for storage in the warehouse. Finished products are then stored before distribution.

The distribution process is carried out using Avian Brands’ fleet of vehicles, ensuring that high-quality paint products reach
various sales points safely and on time. With a structured and integrated production flow, Avian Brands ensures that every paint
product meets the needs and expectations of its customers.

With a skilled and experienced production team, Avian Brands has been able to optimize every stage of production, from the
selection of quality raw materials to meticulous final packaging. In addition, effective implementation of efficiency programs
successfully lowered production costs without compromising on quality, which consequently improves the profitability and
competitiveness of Avian Brands’ paint products in the market.

Paint Manufacturing Realization
We have 2 manufacturing facilities located in Sidoarjo and Serang with respective production capacity of 213,840 and
72,576 metric tons per year. Information regarding the total paint production from both manufacturing facilities over the past
2 years is described as follows:

                                       2024                              2023                           Increase (Decrease)
    Description                             Contribution                     Contribution
                       Metric Tons                          Metric Tons                          Metric Tons             %
                                                (%)                              (%)
 Sidoarjo Plant           137,950               69.91          130,325             72.19                7,625             5.85
 Serang Plant                59,389             30.09           50,215             27.81                9,174            18.27
 Total Production         197,339              100.00         180,540            100.00             16,799               9.30




             30.09%                                                             27.81%



                             2024                                                                2023



                                            69.91%                                                              72.19%


            Sidoarjo Plant            Serang Plant                              Sidoarjo Plant           Serang Plant




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Throughout 2024, Avian Brands successfully realized paint production of 197,339 metric tons, an increase of 9.30% compared
to 180,540 metric tons in 2023. This was mainly due to the increase in production at Sidoarjo Plant by 7,625 metric tons or
5.85%, and at Serang Plant by 9,174 metric tons or 18.27%.

Innovation and Development of Paint Production Process
In 2024, Avian Brands’ innovations and advancements in production processes focused on sustainability, aiming to enhance
efficiency that significantly reduces energy consumption.

In paint manufacturing, Avian Brands expanded its production capacity by establishing a new facility equipped with
cutting-edge technology, enabling energy savings of up to 50%. Avian Brands has optimized its mixer operations by
adjusting the HSD for mill base production, resulting in shorter cycle time per batch and increased paint output per shift.
In resin production, Avian Brands successfully reduced the production cycle from the previous 12 hours per batch to just
8–10 hours. This is made possible through optimization of processes and machinery, shortening the cycles in cooling,
treatment, and other stages.

Additionally, efficiency enhancements in can packaging production have led to a productivity increase of 11.55%,
from 741 Pcs/Manhours to 826 Pcs/Manhours. Other improvements that have been made to the manufacturing process
include:
1. Automating the rubbing process of component materials;
2. Reducing the downtime setup of moulding machines through the methods of setting and spare of the moulding machines
    (with increased machine availability from 80.87% to 83.93% in 2024); and
3. Automating the process of adding latex sidestep in the manual assembly line.

The can packaging manufacturing also managed to optimize the use of gas energy in the printing process from 14.10 m3/ton
to 9.70 m3/ton. Furthermore, in terms of energy saving, Avian Brands has succeeded in reducing the ratio of electrical energy
consumption for compressors from 9.23 KWH/ton to 4.53 KWH/ton through zoning and looping systems.



Profitability

Profitability ratio is one of the indicators used to measure the financial performance of Avian Brands. This ratio indicates
Avian Brands’ ability to generate profit from operating activities as well as the effectiveness of management in managing
available resources. A higher profitability ratio value indicates a better ability of Avian Brands to generate profit. Information
regarding Avian Brands’ profitability level for the last 2 years is described as follows:

                                                                                                                                   (in %)

                                               Description                                               2024              2023

 Consolidated Profit Before Income Tax Expense to Consolidated Net Revenues                               27.69            28.39
 Consolidated Profit Before Income Tax Expense to Consolidated Total Assets                               18.70            17.84
 Consolidated Profit Before Income Tax Expense to Consolidated Total Equity                               21.48            20.08
 Consolidated Profit for the Year to Consolidated Net Revenues                                            22.27            23.42
 Consolidated Profit for the Year to Consolidated Total Assets                                            15.04            14.71
 Consolidated Profit for the Year to Consolidated Total Equity                                            17.27            16.56


Avian Brands measures its profitability ratio by comparing profit before income tax expense and profit for the year with net
revenues, total assets, and total equity. In 2024, Avian Brands profitability ratio mostly showed a decrease compared to 2023.
This was influenced by the decrease in gross profit margin due to the increase in contribution of trading goods segment
and the increase in the use of promotional goods or below-the-line marketing expenses (“BTL”). This increase in promotion is
part of the Company’s growth strategy, particularly in the midst of challenging market conditions and intense competition.
The Company remains committed to ensuring a balance between market expansion and sustainable profitability.




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Marketing and Distribution Aspect
The marketing aspect is a crucial element in Avian Brands’ business strategy to achieve growth and boost competitiveness
amidst increasingly intense industry competition. Through an integrated and innovative marketing approach, Avian Brands
seeks to better understand customer needs and preferences as well as to create products and services with added value.
Beyond increasing sales, Avian Brands’ marketing strategy also focuses on establishing and maintaining long-term relationships
with customers.

In pursuit of this objective, Avian Brands implements a marketing strategy that is broadly categorized into 2 approaches,
namely marketing with loyalty programs (below-the-line marketing or “BTL”) and marketing via advertising media
(above-the-line marketing or “ATL”) that focuses on the use of mass media to reach a wider target audience. Information on
the two strategies is further described as follows:



                                                  BTL Marketing Strategy



   1    Targeting retail shops, i.e. traditional building material stores and modern outlet to distribute
        Avian Brands’ products to end customers, through offering reward schemes such as gold coins,
        loyalty points that are redeemable into vouchers, retail shop discounts, and other forms of
        rewards;
   2    Convening retailer in-store events for new product launches;
   3    Implementing loyalty programs for handymen, in which the handymen or buyers may redeem
        coupons inside the paint cans with e-money, such as OVO, Gopay, etc. by scanning the barcode
        on the coupons using their mobile device. In doing so, Avian Brands collaborates with retail stores,
        where the handymen or customer can ask the store for help to scan the coupons and receive the
        money in cash. In return, stores will be given incentives in the form of digital currency;
   4    Increasing customer loyalty through Avian Brands Priority Customers program, through which
        stores that prioritize the sale of a certain amount of Avian Brands’ products receive additional
        incentives and better service;
   5    Providing additional incentives to store employees, particularly to those who manage to sell
        previously unsold products, including tinting products. This measure aims to motivate the sales
        force to expand product distribution; and
   6    Organizing employee gathering programs for store employees as the front liners of the sales
        force. The program includes product training, proper product application, and introduction to
        related programs. At the gathering event, store employees can also give testimonials about
        the success or incentives they have received for implementing the programs in points 4 and 5,
        in order to motivate other colleagues.




                                               ATL Marketing Strategy


                 1    Advertising on television, print, and radio;
                 2    Implementing in-store programs consisting of display and signage, store decoration, product
                      categorization, and appointing product consultants to act as brand ambassadors;
                 3    Implementing out-of-store programs consisting of brand launches and product trainings to specific
                      customer groups; and
                 4    Building partnerships with famous artists as brand ambassadors, especially for premium products.




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Avian Brands also leverages digital technology and social      Furthermore, Avian Brands is committed to steadily
media to reach a broader market and enhance customer           expanding its distribution network to support the one
engagement, through platforms such as Google, YouTube,         day delivery and express delivery services. By the end of
LinkedIn, Facebook, Instagram, TikTok, and Avian Brands        2024, Avian Brands’ distribution networks had expanded
official website. By optimizing search engines on Google       to cover the entire Indonesian territory, spanning 34
and sharing informative video content on YouTube,              provinces and 98 cities, consisting of 124 distribution
Avian Brands enhances brand visibility and awareness.          centers and 15 wholly-owned mini-distribution centers,
LinkedIn is utilized to establish professional connections,    as well as cooperation with 38 third-party distribution
while Facebook and Instagram target a wider audience           centers located in several cities. With this expanded
with visually engaging and interactive campaigns. TikTok,      distribution network, 91% of one day delivery target was
with its younger demographic, enables creative marketing       achieved in 2024. Meanwhile, Avian Brands also continues
messaging. Meanwhile, the official website serves as           to improve its express delivery service that has been
a comprehensive information hub, providing product             introduced, guaranteeing delivery of customer orders
details, the latest news, and responsive customer service to   within 2 hours, particularly for newly launched products,
ensure customer needs and expectations are met.                which eliminates the need for customers to store inventory
                                                               in their warehouses.
This strategy is further strengthened by the presence
of product consultants appointed and stationed                 This strategy allows Avian Brands to reach customers
by Avian Brands at retail outlets. The consultants actively    more efficiently and quickly while ensuring that products
promote products and address inquiries regarding Avian         reach customers in a timely manner. This not only increase
Brands’ offerings from customers visiting the outlets.         customer satisfaction but also strengthen Avian Brands’
As of the end of 2024, Avian Brands has had more than          competitive edge in the market.
1,600 product consultants in Avian Brands’ sales team.




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Market Share

Market share is an indicator that measures the percentage of Avian Brands’ total product sales within the national paint industry.
Assessing and understanding market share provides an objective overview of Avian Brands’ competitive position, as well as
its ability to attract customers compared to competitors. As of the end of 2024, based on internal management estimation
Avian Brands has secured a 24% share of the national paint market, reaffirming its position as the industry leader. This success is
made possible by an extensive and solid distribution network, reaching over 58,400 building material stores across Indonesia.
Through strategic partnerships with these retailers, Avian Brands ensures that high-quality paint products are available in
various regions, catering to customer needs from Sabang to Merauke.

Moreover, Avian Brands is also a trusted paint supplier for numerous contractors involved in various projects, from residential to
commercial and industrial developments. This trust reflects the quality and consistency of Avian Brands’ products, as well as its
commitment to supporting sustainable infrastructure development in Indonesia. With a strong market share and an expansive
distribution network, Avian Brands continues to innovate and enhance market penetration, ensuring that its products remain
the top choice for customers and professionals in the construction industry.




Financial Overview
This financial overview is prepared based on information derived from PT Avia Avian Tbk and Subsidiaries’ Consolidated Financial
Statements for the financial year ended December 31, 2024 and 2023 audited by Public Accounting Firm of Teramihardja,
Pradhono & Chandra (a member firm of Crowe global).



Consolidated Statement of Financial Position

Assets
                                                                                               (in millions Rupiah, unless otherwise stated)

                                                                                                     Increase (Decrease)
                     Description                          2024               2023*              Nominal                Percentage
                                                                                              (Million IDR)                (%)

 Current Assets
 Cash and Cash Equivalents                               2,329,491           1,230,544          1,098,947                     89.31
 Restricted Cash in Bank and Time Deposits                   3,000               2,100                 900                    42.86
 Investments                                             2,952,900           4,754,087        (1,801,187)                   (37.89)
 Trade Receivables

   Related Parties                                          16,319             14,018                2,301                    16.41
   Third Parties                                         1,445,418           1,229,025            216,393                     17.61
 Other Receivables

   Related Parties                                          83,283             56,538              26,745                     47.30
   Third Parties                                            45,420             49,331              (3,911)                   (7.93)
 Inventories                                             1,558,203           1,519,549             38,654                      2.54
 Right of Return Assets                                     19,333             16,426                2,907                    17.70
 Advance to Suppliers                                        5,791               7,734             (1,943)                  (25.12)
 Prepaid Expenses                                           14,456             11,381                3,075                    27.02




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                                                                                              (in millions Rupiah, unless otherwise stated)

                                                                                                    Increase (Decrease)
                       Description                       2024               2023*              Nominal                Percentage
                                                                                             (Million IDR)                (%)
 Prepaid Taxes                                            19,748              20,069                (321)                   (1.60)
 Total Current Assets                                  8,493,362          8,910,802           (417,440)                     (4.68)
 Non-Current Assets
 Investment Properties                                   290,510            290,113                   397                     0.14
 Fixed Assets – Net                                    1,930,297           1,659,163             271,134                     16.34
 Right-of-Use Assets                                     180,949            150,551               30,398                     20.19
 Intangible Assets                                        28,734              25,808                2,926                    11.34
 Investment in Joint Venture                              19,976              17,298                2,678                    15.48
 Deferred Tax Assets                                      36,144              43,878              (7,734)                  (17.63)
 Estimated Claims for Income Tax Refund                   29,432              29,432                      0                        0
 Other Non-Current Assets                                 51,571              39,942              11,629                     29.11
 Total Non-Current Assets                              2,567,613          2,256,185             311,428                     13.80
 Total Assets                                         11,060,975         11,166,987           (106,012)                     (0.95)
* Data reclassified.


Total Assets
Avian Brands’ total assets in 2024 reached IDR11,060.97 billion, a decrease of 0.95% compared to IDR11,166.99 billion in 2023.
This was mainly influenced by the decrease in total current assets.

Total Current Assets
Avian Brands’ total current assets in 2024 reached IDR8,493.36 billion, a decrease of 4.68% compared to IDR8,910.80 billion in
2023. This was mainly influenced by the decrease in short-term investments and investments in government bonds.

Total Non-Current Assets
Avian Brands’ total non-current assets in 2024 reached IDR2,567.61 billion, an increase of 13.80% compared to IDR2,256.19
billion in 2023. This was mainly influenced by increase in fixed assets, net, right-of-use assets, and other non-current assets.

Liabilities
                                                                                              (in millions Rupiah, unless otherwise stated)

                                                                                                    Increase (Decrease)
                       Description                       2024               2023               Nominal                Percentage
                                                                                             (Million IDR)                (%)

 Current Liabilities
 Short-term Bank Loans                                     9,189               5,222              3,967                    75.97
 Trade Payables

    Related Parties                                     362,941              279,321            83,620                     29.94
    Third Parties                                       424,760              371,337            53,423                     14.39
 Other Payables

    Related Parties                                          487                121                 366                  302.48

    Third Parties                                         24,136              30,450            (6,314)                  (20.74)

 Unearned Revenue

    Related Parties                                        1,611               1,802              (191)                  (10.60)




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                                                                                                 (in millions Rupiah, unless otherwise stated)

                                                                                                       Increase (Decrease)
                     Description                            2024                2023              Nominal                Percentage
                                                                                                (Million IDR)                (%)

   Third Parties                                                599                 362                237                    65.47
 Accrued Expenses                                          252,661              301,835           (49,174)                  (16.29)
 Short-term Employee Benefits                              108,618               97,052            11,566                     11.92
 Taxes Payables                                             72,123               52,584            19,539                     37.16
 Customer Guarantee                                           3,000               2,100                900                    42.86
 Provision for Sales Return                                 26,683               21,979              4,704                    21.40
 Lease Liabilities – Current Portion                        64,777               10,965            53,812                   490.76
 Total Current Liabilities                               1,351,585            1,175,130          176,455                     15.02
 Non-Current Liabilities
 Lease Liabilities – Non-Current Portion                    19,416               15,725              3,691                    23.47
 Employee Benefit Liabilities                               58,094               54,643              3,451                     6.32
 Total Non-Current Liabilities                              77,510               70,368             7,142                    10.15
 Total Liabilities                                       1,429,095            1,245,498          183,597                     14.74


Total Liabilities
Avian Brands’ total liabilities in 2024 reached IDR1,429.10 billion, an increase of 14.74% compared to IDR1,245.50 billion in
2023. This was mainly influenced by the increase in total current liabilities and total non-current liabilities.

Total Current Liabilities
Avian Brands’ total current liabilities in 2024 reached IDR1,351.59 billion, an increase of 15.02% compared to IDR1,175.13 billion
in 2023. This was mainly influenced by increase in trade payables, both of related parties and third parties, as well as lease
liabilities current portion, and taxes payables.

Total Non-Current Liabilities
Avian Brands’ total non-current liabilities in 2024 reached IDR77.51 billion, an increase of 10.15% compared to IDR70.37 billion
in 2023. This was mainly influenced by increase in employee benefit liabilities, as well as in lease liabilities, non-current portion.

Equity
                                                                                                 (in millions Rupiah, unless otherwise stated)

                                                                                                       Increase (Decrease)
                     Description                            2024                2023              Nominal                Percentage
                                                                                                (Million IDR)                (%)

 Equity Attributable to the Owners of the Parent
 Share Capital                                              619,536             619,536                      0                        0
 Additional Paid-in Capital                               7,793,218           7,793,218                      0                        0
 Treasury Shares                                          (574,552)             (16,369)            558,183                 3,410.00
 Revaluation Surplus of Fixed Assets                        229,406             229,406                      0                        0
 Share of Other Comprehensive Income of
                                                                   85                85                      0                        0
 Joint Venture
 Changes in Fair Value of Investment in
                                                          (103,357)             (56,408)             46,949                     83.23
 Government Bonds
 Remeasurement Gain on Employee Benefit
                                                              9,880               9,921                 (41)                   (0.41)
 Liabilities




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                                                                                              (in millions Rupiah, unless otherwise stated)

                                                                                                    Increase (Decrease)
                       Description                            2024           2023              Nominal                Percentage
                                                                                             (Million IDR)                (%)
 Retained Earnings
   Appropriated                                                124,000       124,000                     0                        0
   Unappropriated                                            1,527,177     1,210,978             316,199                     26.11
 Sub-Total                                                   9,625,393    9,914,367           (288,974)                     (2.91)

 Non-Controlling Interests                                       6,487         7,122                (635)                   (8.92)

 Total Equity                                                9,631,880    9,921,489           (289,609)                     (2.92)


Avian Brands’ total equity in 2024 reached IDR9,631.88 billion, a decrease of 2.92% compared to IDR9,921.49 billion in 2023.
This was mainly influenced by increase in the treasury shares.



Consolidated Statement of Profit or Loss and Other Comprehensive Income

                                                                                              (in millions Rupiah, unless otherwise stated)

                                                                                                    Increase (Decrease)
                       Description                            2024           2023              Nominal                Percentage
                                                                                             (Million IDR)                (%)
 Net Revenues                                                7,471,356     7,016,882            454,474                       6.48
 Cost of Goods Sold                                         (4,130,606)   (3,833,546)           297,060                       7.75
 Gross Profit                                                3,340,750     3,183,336            157,414                       4.94
 Operating Expenses
 Selling Expenses                                           (1,318,417)    (1,240,237)            78,180                      6.30
 General and Administrative Expenses                         (253,243)      (226,090)             27,153                     12.01
 Total Operating Expenses                                   (1,571,660)    (1,466,327)           105,333                      7.18
 Operating Profit                                            1,769,090      1,717,009             52,081                      3.03
 Other Income (Expenses)
 Finance Income                                                285,105        286,259             (1,154)                   (0.40)
 Finance Charges                                                (2,539)        (4,077)            (1,538)                  (37.72)
 Share of Net Profit of a Joint Venture                          2,678            898               1,780                  198.22
 Other Income (Expenses) – Net                                  14,260         (7,946)            22,206                   279.46
 Profit Before Income Tax Expense                            2,068,594     1,992,143             76,451                       3.84
 Income Tax Expense                                          (404,895)      (349,047)             55,848                     16.00
 Profit for the Year                                         1,663,699     1,643,096             20,603                       1.25
 Other Comprehensive Income (Loss)                            (46,983)        81,403          (128,386)                  (157.72)
 Total Comprehensive Income for the Year                     1,616,716     1,724,499          (107,783)                     (6.25)
 Profit for the Year Attributable to:
   Equity Holders of the Parent Company                      1,664,341      1,642,166             22,175                      1.35
   Non-Controlling Interests                                     (642)            930             (1,572)                (169.03)
 Total Comprehensive Income for the Year Attributable to:
   Equity Holders of the Parent Company                      1,617,351      1,723,608          (106,257)                    (6.16)
   Non-Controlling Interests                                     (635)            891             (1,526)                (171.27)
 Basic and Diluted Earnings per Share Attributable to
 the Equity Holders of the Parent Company                        27.16          26.51                0.65                     2.45
 (Full Rupiah)




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Net Revenues
Avian Brands’ net revenues in 2024 reached IDR7,471.36 billion, an increase of 6.48% compared to IDR7,016.88 billion in 2023.
This was mainly influenced by the increase in net revenues, both in the architectural solutions segment and in the trading
goods segment.

Cost of Goods Sold
Avian Brands’ cost of goods sold in 2024 reached IDR4,130.61 billion, an increase of 7.75% compared to IDR3,833.55 billion
in 2023. This was mainly influenced by the increase in purchases of finished goods for the trading goods segment, as well as
the increase in promotional expenses in line with the increase in promotional activities in response to economic challenges.

Gross Profit
Avian Brands’ gross profit in 2024 reached IDR3,340.75 billion, an increase of 4.94% compared to IDR3,183.34 billion in 2023.
This was mainly influenced by the increase in net revenues.

Profit Before Income Tax Expense
Avian Brands’ profit before income tax expense in 2024 reached IDR2,068.59 billion, an increase of 3.84% compared to
IDR1,992.14 billion in 2023. This was mainly influenced by the increase in gross profit.

Profit for the Year
Avian Brands’ profit for the year in 2024 reached IDR1,663.70 billion, an increase of 1.25% compared to IDR1,643.10 billion
in 2023. This was mainly influenced by the increase in business profit and other income.

Other Comprehensive Income (Loss)
Avian Brands’ total other comprehensive loss in 2024 reached IDR46.98 billion, a decrease of 157.72% compared to 2023
which recorded other comprehensive income of IDR81.40 billion. This was mainly influenced by the decrease in changes in fair
value of investment in government bonds.

Total Comprehensive Income for the Year
Avian Brands’ total comprehensive income for the year in 2024 reached IDR1,616.72 billion, a decrease of 6.25% compared to
IDR1,724.50 billion in 2023. This was mainly influenced by the decrease in other comprehensive income net of tax



Consolidated Statement of Cash Flows
                                                                                          (in millions Rupiah, unless otherwise stated)

                                                                                                Increase (Decrease)
                       Description                        2024            2023*            Nominal                Percentage
                                                                                         (Million IDR)                (%)
 Net Cash Provided by Operating Activities               1,766,128       1,640,834            125,294                    7.64
 Net Cash Provided by (Used in) Investing Activities     1,262,474      (1,138,195)        (2,400,669)              (210.92)
 Net Cash Used in Financing Activities                  (1,933,622)     (1,440,808)           492,814                   34.20
 Net Increase (Decrease) in Cash and Cash Equivalents    1,094,980       (938,169)          2,033,149                 216.71
 Cash and Cash Equivalents and Bank Overdraft
                                                         1,225,322       2,163,491          (938,169)                 (43.36)
 at the Beginning of the Year
 Cash and Cash Equivalents and Bank Overdraft
                                                         2,320,302       1,225,322          1,094,980                   89.36
 at End of Year
* Data reclassified.


Net Cash Generated from Operating Activities
Net cash generated by Avian Brands from operations in 2024 reached IDR1,766.13 billion, an increase of 7.64% compared to
IDR1,640.83 billion in 2023. This was mainly influenced by the increase in cash received from customers.




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Net Cash Provided from/(Used for) Investing Activities
Net cash generated by Avian Brands from investments in 2024 reached IDR1,262.47 billion, an increase of 210.92% compared
to in 2023 which used net cash for investment activities of IDR1.138,20 billion. This was mainly influenced by the increase in
receipts from short-term investments.

Net Cash Used in Financing Activities
Net cash used by Avian Brands in financing activities in 2024 reached IDR1,933.62 billion, an increase of 34.20% compared
to IDR1,440.81 billion in 2023. This was mainly influenced by the increase in the payments of cash dividends and
acquisition of treasury shares.



Solvency

Avian Brands always emphasizes the fulfillment of obligations to creditors and suppliers through timely repayment of maturing
debts, in order to maintain good relations. In addition, solvency of Avian Brands also reflects its financial health and operational
stability. Avian Brands employs a strategic approach in measuring its ability to repay its debts by measuring its liquidity ratios
and solvency ratios. These ratios provide a comprehensive view of Avian Brands’ liquidity and solvency position and indicate
whether it has sufficient assets to cover its current and non-current liabilities.

Information regarding the performance of these ratios for the last 2 years is described below:
                                                                                                                                      (in X)

                                              Description                                                    2024              2023

 Liquidity Ratio
 Consolidated Total Current Assets to Consolidated Total Current Liabilities                                 6.28              7.58
 Solvency Ratio
 Consolidated Total Non-Current Liabilities to Consolidated Total Equity                                     0.01              0.01

 Consolidated Total Liabilities to Consolidated Total Equity                                                 0.15              0.13

 Consolidated Total Liabilities to Consolidated Total Assets                                                 0.13              0.11



Liquidity Ratio
The liquidity ratio is used to measure Avian Brands’ ability to meet its current liabilities. This ratio gives an idea of how swiftly
current assets can be converted into cash to meet these liabilities. Higher liquidity ratios indicate that Avian Brands has a
strong financial position and is able to meet its maturing current liabilities without experiencing difficulties in liquidity.
Avian Brands uses the indicator of current ratio by comparing current assets to current liabilities to measure the liquidity ratio.

In 2024, Avian Brands’ current ratio increased to 6.28X compared to 7.58X in 2023. This was mainly influenced by the decrease
in current assets.

Solvency Ratio
The solvency ratio is used to measure Avian Brands’ ability to meet all liabilities, both current and non-current.
This ratio indicates the overall financial health of Avian Brands and its ability to meet all financial liabilities. High solvency ratio
indicates that Avian Brands has sufficient assets to cover all debts, reflecting financial stability.

In 2024, Avian Brands’ solvency ratios, measured through comparison of total non-current liabilities to total equity,
total liabilities to total equity, and total liabilities to total assets, showed relatively stable result in each comparison.
However, there was an increase in the ratio of total liabilities to total equity and total liabilities to total assets, bringing the
ratios to 0.01X, 0.15X, and 0.13X compared to 0.01X, 0.13X, and 0.11X in 2023. This was mainly influenced by increase in total
liabilities.




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Collectability of Account Receivables

The collectability of account receivables is a key indicator in evaluating the effectiveness and efficiency of Avian Brands’
financial management. This indicator provides an overview of Avian Brands’ ability to manage and optimize net revenues
into actual cash receipts. By adopting approaches such as accounts receivable turnover ratio and average collection period,
Avian Brands is able to systematically monitor and analyze how receivables are managed and converted into cash, which
ultimately affects overall liquidity and financial stability.

The accounts receivable turnover ratio is measured by dividing net revenues by the balance of accounts receivable.
This approach illustrates how frequently trade receivables turn over in a given year and reflects the liquidity and effectiveness
of Avian Brands’ receivables management. Meanwhile, Avian Brands’ average collection period is measured by calculating the
average time it takes to collect payments from customers after a sale, by dividing trade receivables by net revenues per day,
calculated from total net revenues in a year divided by 365 days. This method helps identify effective collection patterns and
enables Avian Brands to promptly respond to changes in customer payments.

Information regarding the collectability of account receivables of Avian Brands for the last 2 years is described as follows:


                                          Description                                                  2024           2023*

 Receivables Turnover Ratio (X)                                                                         5.52             6.06

 Average Collection Period (days)                                                                         66              60
* Data restated.


In 2024, the collectability of accounts receivable of Avian Brands, based on the accounts receivable turnover ratio was recorded
at 5.52X, a decrease compared to 6.06X in 2023. Meanwhile, the average collection period of Avian Brands’ receivables increased
to 66 days, compared to 60 days in 2023. This was mainly influenced by increase in trade receivables.



Capital Structure

Policy and Basis for Determining Capital Structure
The policy and basis for determining Avian Brands’ capital structure aims to ensure that Avian Brands maintains healthy and
optimal capital ratios to support sustainable business growth and operations. To this end, Avian Brands management actively
manages and adjusts its capital structure based on changing economic conditions and market dynamics.

Capital structure management involves various strategic measures, including adjusting dividend payments to Shareholders
to maintain a balance between profit distribution and internal capital requirements. Moreover, Avian Brands also takes into
consideration the establishment of reserve funds to mitigate potential risks in the future as well as to support strategic
investments that can enhance the company’s value. Adjustments to the capital structure may also be made through issuing
new shares to increase equity and strengthen the capital base, or by seeking funding through loans to capitalize on investment
opportunities more quickly. In making these decisions, Avian Brands management constantly considers the cost of capital and
associated risks with the primary objective of maintaining an optimal balance between debt and equity.

By implementing comprehensive capital structure policies and basis, Avian Brands is committed to maintaining financial
stability, enhancing investor confidence, and ensuring the ability to overcome economic challenges and capitalize on future
growth opportunities.




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Capital Structure
Information regarding our capital structure over the past 2 years is described below:
                                                                                                  (in millions Rupiah, unless otherwise stated)

                                                                                                        Increase (Decrease)
                       Description                                   2024        2023              Nominal                Percentage
                                                                                                 (Million IDR)                (%)
 Total Liabilities                                                  1,429,095   1,245,498             183,597                     14.74
 Less: Cash and Cash Equivalents                                    2,329,491   1,230,544          1,098,947                      89.31
 Net Payables                                                       (900,396)     14,954            (915,350)               (6,121.10)
 Total Equity                                                       9,631,880   9,921,489           (289,609)                    (2.92)
 Net Debt to Equity Ratio (%)                                           N/A*        0.15                      -                          -

* Not relevant due to cash and cash equivalents surplus position.



Capital Goods Investment
Avian Brands consistently realizes capital goods investment every year as part of its steadfast commitment to strengthening
the foundation of its business. Capital goods investment includes the expenditure of funds used to purchase strategic assets
or investments expected to generate value in the future. This entails the procurement of various types of fixed assets that
support the operations and growth of Avian Brands.

Capital Goods Investment Strategy and Objectives
Avian Brands realizes capital goods investment as part of the effort to improve operational efficiency, encourage product
innovation, and strengthen its competitive edge. With the right investment strategy, Avian Brands can continuously
strengthen its market position, ensure sustainable growth, and create value for its stakeholders. It also allows Avian Brands to
gain an edge in navigating future challenges and opportunities with more confidence and solidity.

Investment Type and Value
Avian Brands’ capital goods investment includes development of manufacturing facilities, purchase of fixed assets, and
development of technology infrastructure. The value of capital goods investment realized in 2024 reached IDR406.55 billion,
an increase of 88.46% compared to IDR215.72 billion in 2023. Details of Avian Brands’ capital goods investment in the last
2 years are described below:
                                                                                                  (in millions Rupiah, unless otherwise stated)

                                                                                                        Increase (Decrease)
                       Description                                   2024        2023              Nominal                Percentage
                                                                                                 (Million IDR)                (%)
 Direct Acquisition
 Building and Improvements                                             2,586       2,029                  557                   27.45
 Machinery and Equipment                                               8,448       7,420                1,028                   13.85
 Installations                                                          420          516                  (96)                (18.60)
 Vehicles                                                             62,388      62,221                  167                     0.27
 Office Equipment                                                     39,684      37,228                2,456                     6.60
 Assets Under Construction                                           293,025     106,309             186,716                   175.64
 Total                                                               406,551     215,723            190,828                    88.46



Material Commitments related to Capital Goods Investment
Throughout 2024, we did not have any material commitments related to capital goods investment, so we have not presented
information on the name of the counterparty, the purpose of the commitments, the expected source of funds to fulfill the
commitments, the currency in which the commitment is denominated, and the measures we plan to hedge the risk of the
related foreign currency position.




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Realization on Use of Proceeds from Public Offering

Proceeds from the public offering will be allocated by Avian Brands in a prudent and transparent manner in accordance
with predetermined plans. This approach not only strengthens Avian Brands’ financial position but also supports the
implementation of strategic initiatives aimed at enhancing value for stakeholders. Reports on the realization of the use of
proceeds from Avian Brands’ public offering as of December 31, 2024, is described below:

                                                                                                                                                                 (in millions Rupiah, unless otherwise stated)

                                 Realized Value of Public Offering                 Proposed Use of Proceeds as per the Prospectus               Realization of Use of Proceeds as per the Prospectus
                                                                                                                                                                                                       Remaining
                                                                                                                                                                                                        Proceeds
                  Effective       Total                                                                               Principal                                              Principal
Description                                  Costs of     Net Value                                                                                                                                       from
                    Date        Proceeds                                                 Working        Capital       Payment                   Working        Capital       Payment
                                              Public      of Public                                                                   Total                                                Total         Public
                              from Public                                                Capital     Expenditures     of Bank                   Capital     Expenditures     of Bank
                                             Offering     Offering                                                                                                                                      Offering
                                Offering                                                                                Debt                                                   Debt

                                                                       Avian Brands      2,980,000      702,000       550,000       4,232,000   2,410,734      76,938        550,000     3,037,672     1,193,972
Initial Public   November
                               5,766,000     119,356       5,646,644
Offering         30, 2021                                              PT Tirtakencana
                                                                                          950,000        85,000       380,000       1,415,000    950,000       85,000        380,000     1,415,000             0
                                                                       Tatawarna




Dividend Policy and Distribution

Dividend Policy
Our dividend policy is determined based on the provisions contained in Avian Brands’ Articles of Association and approved
by the Shareholders through the General Meeting of Shareholders (“GMS”). The amount of dividends to be paid is at least
50.00% of our distributable net revenue and is subject to our cash flow and investment plans, Indonesian laws and regulations,
and other requirements. The determination of the amount and distribution of dividends is adopted by considering
recommendations from the Board of Directors as well as other factors, including income, operational and financial results,
liquidity conditions, capital expenditure plans, acquisition opportunities, future business prospects, compliance with the
applicable laws and regulations, and other factors that are deemed relevant.

We may announce final dividends (in Rupiah) in years in which we have positive retained earnings balance. A portion of our
net revenue, as determined by the Annual General Meeting of Shareholders (“Annual GMS”), net of corporate income tax, shall
be allocated to a reserve fund until the amount of such reserve fund reaches at least 20.00% of our fully paid-up capital, unless
otherwise determined by the Annual GMS. Avian Brands’ articles of association also permit distribution of interim dividends
prior to the end of a financial year provided that the interim dividends do not result in our net assets becoming less than the
amount of our issued and paid-up capital and the required reserve fund.

Dividend Announcement and Distribution
Pursuant to the resolution of the Annual GMS dated April 4, 2024, the Shareholders approved the distribution of cash
dividend for the financial year of 2023 in the amount of IDR22.- per share or in the amount of IDR1,357,652,577,600.-, with
the condition that such cash dividend shall be set off with the interim dividend for the financial year of 2023 in the amount of
IDR11.- per share or in the amount of IDR681,489,111,600.- which had been paid by Avian Brands to the Shareholders on
October 31, 2023, such that the remaining cash dividend for the financial year 2023 payable on April 30, 2024, by Avian Brands
was IDR11.- per share or in the amount of IDR676,163,466,000.-. Information regarding Avian Brands’ dividend distribution for
the last 2 years is described below:

                                                                                                                                                          (in millions Rupiah, unless otherwise stated)

                                                                       Description                                                                                      2024                       2023
 Declared Dividend
     Final Dividend                                                                                                                                                        N/A*)                   676,163
     Interim Dividends                                                                                                                                                671,979                      681,489
 Total                                                                                                                                                                671,979                 1,357,653
 Dividend per Share (Full Rupiah)                                                                                                                                          11.00                       22.00
 Dividend Payout Ratio (%)                                                                                                                                                 N/A    *)
                                                                                                                                                                                                       82.63




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                                                                                                                        (in millions Rupiah, unless otherwise stated)

                                                      Description                                                                  2024                2023
 Total Dividend Paid per Financial Year
    Final Dividend                                                                                                                676,163               681,489
    Interim Dividends                                                                                                             671,979               681,489
 Total                                                                                                                         1,348,142            1,362,978

*) The value of Final dividends and dividend payout ratio for 2024 is not yet available pending the resolution of the Annual GMS for the financial year of 2024 which
   will be convened in 2025.



Material Information Concerning Investment, Expansion, Divestment,
Merger/Consolidation, Acquisition, and/or Debt/Capital Restructuring
In 2024, neither Avian Brands nor its Subsidiaries conducted any investment, expansion, divestment, merger, acquisition,
and/or debt/capital restructuring.


Material Transactions Containing Conflicts of Interest or Transactions with
Related Parties
Information on Material Transactions Containing Conflict of Interest
Throughout 2024, we did not conduct any transactions with conflicts of interest.

Information on Related Party Transactions
Avian Brands, Subsidiaries, and Affiliated Companies conducted material transactions with related parties in accordance with
the PSAK. All transactions with related parties are aimed to develop our business. Further information on transactions with
related parties conducted by us throughout 2024 is described below:

           Related Parties                              Nature of Relationship                                        Type of Transaction
      PT Avia Avian Industri Pipa             Have the same key management personnel                     Sales of goods, purchase of tools and building
                                                  and under common control entity                            materials, office building rent income,
                                                                                                                  and expense reimbursement.
         PT Mitra Mulia Makmur                Have the same key management personnel                   Sales of goods, purchase of supplies and building
                                                  and under common control entity.                        materials, and factory building rent income.
       PT Sarana Depo Kencana                 Have the same key management personnel                            Sales of goods and building rent.
                                                  and under common control entity.
         PT Wahana Lentera Raya               Have the same key management personnel                     Sales of goods, purchase of tools and building
                                                  and under common control entity.                           materials, office building rent income,
                                                                                                                  and expense reimbursement.
         PT Kencana Lintasindo                Have the same key management personnel                     Sales of goods, purchase of tools and building
             Internasional                        and under common control entity.                          materials, and expense reimbursement.
    PT Panca Kalsiumindo Perkasa              Have the same key management personnel                             Sales of goods and purchases of
                                                  and under common control entity.                                 tools and building materials.
         PT Megadepo Indonesia                Have the same key management personnel                             Sales of goods and purchases of
                                                  and under common control entity.                                 tools and building materials.
 PT Caturkarda Depo Bangunan Tbk              Have the same key management personnel                                       Sales of goods.
                                                  and under common control entity.
    PT Bangun Bersama Solusindo                       Under common control entity.                       Sales of goods, office building rental income,
                                                                                                             and purchases of building materials.
  The Board of Commissioners and                       Key management personnel.                                   Salaries and other short-term
       The Board of Directors                                                                                         compensation benefits.




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Realization of Related Party Transactions and Balances
The realization of related party transactions and balances on our financial performance is described as follows:

                                                                                            (in millions Rupiah, unless otherwise stated)

                                                                                          Percentage of Total Assets (%)
      Related Party Balance in Assets              2024                 2023
                                                                                             2024                      2023
 Trade Receivables                                  16,319               14,018               0.15                       0.13
 Other Receivables                                  83,283               56,538               0.75                       0.51
 Right of Use Assets                                52,622               51,460               0.48                       0.46
 Total                                            152,224              122,016                1.38                       1.10


                                                                                            (in millions Rupiah, unless otherwise stated)

           Related Party Balance                                                        Percentage of Total Liabilities (%)
                                                   2024                 2023
                in Liabilities                                                               2024                      2023
 Trade Payables                                   362,941              279,321               25.40                      22.43
 Other Payables                                        487                 121                0.03                        0.01
 Unearned Revenue                                    1,611                1,802               0.11                        0.14
 Lease Liabilities                                  52,622                4,186               3.68                        0.34
 Total                                            417,661              285,430               29.22                     22.92


                                                                                            (in millions Rupiah, unless otherwise stated)

           Related Party Balance                                                         Percentage of Net Revenues (%)
                                                   2024                 2023
              in Net Revenues                                                                2024                      2023
 Revenue                                           60,083               53,153                0.80                      0.76


                                                                                            (in millions Rupiah, unless otherwise stated)

                                                                                        Percentage of Cost of Goods Sold
           Related Party Balance                                                                      (%)
                                                   2024                 2023
           in Cost of Goods Sold
                                                                                             2024                      2023
 Purchase of Inventories                         1,825,367            1,539,938              44.19                      40.17


                                                                                            (in millions Rupiah, unless otherwise stated)

                                                                                        Percentage to Total Other Income
          Related Party Balance                                                               (Expenses) – Net (%)
                                                   2024                 2023
    in Other Income (Expenses) – Net
                                                                                             2024                      2023
 Factory and Office Building Rental Income         3,936                3,993                27.60                      50.25


Fairness of Transactions
In the transactions, we do not have any special purpose that potentially violates the applicable regulations, including not
resulting in conflicts of interest for us or the majority or minority Shareholders.

Compliance with Related Rules and Regulations
We have complied with the relevant rules and regulations:
1. Financial Services Authority Regulation No. 42/POJK.04/2020 concerning Affiliated Transactions and Conflict of Interest
   Transactions; and
2. Financial Services Authority Regulation No. 17/POJK.04/2020 concerning Material Transaction and Change of Business
   Activities.




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Statement of the Board of Commissioners and the Board of Directors on Related Party Transactions
Through the mechanism of transaction and disclosure of reports, the Board of Directors declares that related party transactions
conducted by us have undergone adequate procedures and are conducted in accordance with generally accepted business
practices with arms-length principles. In addition, the Board of Commissioners, assisted by the Audit Committee, has reviewed
and approved the related party transactions above, and has ensured that the transactions were conducted in accordance with
generally accepted business practices with arms-length principles.

Related Party Transactions that Generate Business Income and are Routinely,
Repeatedly, and/or Continuously Performed
Disclosure of related party transactions that are business activities performed in order to generate business income and
performed routinely, repeatedly, and/or continuously, we have disclosed them as descriptions on realization of balances and
related party transactions above in line with the information contained in Note No. 7 of the PT Avia Avian Tbk and Subsidiaries’
Consolidated Financial Statements for the financial year ended December 31, 2024 and 2023.

Related Party Transactions Requiring Approval from Independent Shareholders
There were no related party transactions conducted by us that required the approval of Independent Shareholders.



Comparison of Target and Realization in 2024

Information related to the business growth target and realization that we aimed to achieve in 2024 is described below:

                                                                                                                   Achievement
                Description                                Unit       2024 Target       2024 Realization
                                                                                                                       (%)
 Total Production                                      Metric Tons      207,725                197,339                  95.00
 Net Revenues                                        Million Rupiah    7,823,000             7,471,356                  95.50
 Profit for the Year                                 Million Rupiah    1,736,000             1,663,699                  95.84
 Capital Structure
    Net Debt to Equity Ratio                                 %           < 10.00                  N/A*                 100.00

* Not relevant due to cash and cash equivalents surplus position.



Business Prospects

Heading into 2025, the Indonesian economy is projected to grow in the range of 4.7% - 5.5%, driven by strong domestic
consumption, investment, and continued infrastructure projects. The government continues to encourage industrial
downstreaming and adoption of technology to improve competitiveness, with responsive fiscal and monetary policies playing
a role in maintaining economic stability. However, external challenges such as trade protectionism, weakening global demand,
and geopolitical uncertainty may affect the flows of investment and exports. Therefore, adaptive strategies are necessary to
strengthen potential sectors such as technology, renewable energy, and digital industry to ensure sustainable growth and
resilience of the national economy.

In line with the foregoing, the Indonesian paint industry in 2025 is projected to keep growing, supported by the development
of infrastructure and residential housing, as well as the rapid growth of the property and manufacturing sectors.
The government’s program to build three million houses annually is expected to be a major catalyst in increasing national
paint demand, particularly in the decorative paint and protective coatings segments. Additionally, the trend of innovation in
environmentally friendly products continues to grow, along with increasing public awareness of products with low Volatile
Organic Compound (“VOC”) content and energy-efficient technologies.




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However, challenges remain, most notably in improving domestic market penetration, given that Indonesia’s per capita paint
consumption is still lower compared to several countries in the Southeast Asian region. In addition, the paint industry is faced
with fluctuating prices of raw materials, such as resins and pigments, most of which are still imported, as well as regional
competition with foreign products with larger scales of production. Therefore, adaptive strategies are essential, such as product
diversification, strengthening supply chain of domestic raw materials, and improving distribution network. With the support
of government policies that encourage industrialization and technological innovation, the national paint industry has positive
prospects and potential to experience significant growth in 2025.

Source:
• The 2024 Indonesian Economic Report, Bank Indonesia; and
• Data from Indonesian Paint Manufacturers Association (Asosiasi Produsen Cat Indonesia or “APCI”)” cited by Kompas.com.




Target Achievement Strategy

In facing the challenges and capitalizing on the opportunities in 2025, Avian Brands has formulated comprehensive and
proactive strategies to achieve its targets. These strategies are designed to ensure sustainable growth, improve competitiveness,
and realize the projections set for 2025. Information on the target achievement strategies of Avian Brands is described as
follows:
1. Increasing the number of distribution centers in accordance with market developments;
2. Completing product portfolios in each category and price point to meet market needs;
3. Increasing brand awareness through various marketing programs;
4. Improving customer service with new approaches, such as express delivery;
5. Increasing customer loyalty with various programs, such as Avian Brands Priority Customer;
6. Expanding the market by reaching out to segments outside retail and modern shops, such as project, new build, and
     business to business;
7. Strengthening innovation and development, both for existing products (cost saving) and new products; and
8. Constantly upgrading manufacturing facilities and other supporting facilities, including the Enterprise Resource Planning
     (“ERP”) System in use with appropriate new technology to improve efficiency.



2025 Projection

Going into 2025, Avian Brands has formulated projections as a reference to achieve sustainable growth and performance
improvements in various aspects. These projections are based on an in-depth analysis of market trends, economic conditions,
and strengths and opportunities. Avian Brands has targeted double-digit sales growth, primarily driven by growth in the
architectural solutions segment. Focusing on this segment is expected to maintain positive momentum and to capitalize on
the growing demand in the architecture and construction industry.

In addition to targeting sales growth, Avian Brands also directs its efforts to increase production to double-digit growth
compared to the previous year. This measure is undertaken to meet the needs of a growing market and to maintain a competitive
standing in an increasingly cut-throat market. In terms of profitability, Avian Brands is determined to maintain a healthy margin
level. This will be supported by the implementation of efficiency programs in various operational areas designed to optimize
costs and improve overall efficiency.

In terms of capital structure, Avian Brands currently relies on its own capital without involving loan capital. This approach
not only aims to maintain financial independence and flexibility, but also to reduce debt-related risks and maintain
long-term financial stability. Nevertheless, Avian Brands does not rule out the possibility of using loan capital in the future.
However, the use of loan capital will be carried out prudently, ensuring that each decision is based on reasonable financial
ratios and supports the operational sustainability of Avian Brands. Moreover, Avian Brands will maintain a consistent dividend
policy by planning to distribute 50% of net profit to Shareholders as dividends. This policy reflects Avian Brands’ commitment
to delivering equitable returns to Shareholders while maintaining sufficient capital to support future growth.




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Avian Brands’ Strategic Plans

In facing the evolving industry dynamics and increasingly complex global challenges, Avian Brands is steadfastly committed
to formulating and implementing holistic and sustainable strategic plans. In this regard, Avian Brands has formulated
integrated strategies that include both short-term and long-term concrete measures. These strategies are designed to ensure
the survival of Avian Brands, as well as to ensure sustainable growth and delivery of maximum added value to all stakeholders.
Avian Brands’ strategic plans are further described as follows:

                                                       Short-term Strategic Plans
 Avian Brands remains committed to improving operational performance and expanding market reach by implementing structured
 strategic plans. Its main focuses include product innovation, infrastructure development, operational efficiency improvement, and
 sustainability. Avian Brands’ short-term strategic plans are further described as follows:
 1. Construction of Water-Based Plan in Cirebon                           4. Addition of Distribution Center (“DC”)
    As part of the drive to increase manufacturing capacity and              Avian Brands continues to expand its distribution network to
    efficiency, Avian Brands is building a new water-based plant in          support growth in the domestic market. In 2024, Avian Brands
    Cirebon. This plant is designed with cutting-edge technology             has opened new distribution centers, including:
    and integrated systems, which allows for reduced waste and               a. Mini DC in Sumba;
    increased productivity. This is consistent with Avian Brands’            b. DC in Masohi;
    commitment to offering environmentally friendly products In              c. DC in Wonosobo;
    support of sustainability.                                               d. DC in Mamuju;
 2. Addition of Green Label Products                                         e. DC in Banjar; and
    Avian Brands continues to expand its portfolio of environmentally        f. DC in South Makassar.
    friendly products. In 2024, Avian Brands has added 6 new                 This expansion of distribution network is expected to improve
    Singapore Green Label-certified products, including:                     distribution efficiency and expand product reach to potential
    a. No Drop Beton dan Batu Alam;                                          new areas.
    b. Avian Cat Lapangan;                                                5. Plant Development
    c. No Drop Kolam Ikan;                                                   Avian Brands continues to develop the manufacturing
    d. Supersilk Semi Kilap;                                                 infrastructure at its existing plants to support operational
    e. Supersilk Basic; and                                                  efficiency and sustainability. This development includes
    f. Avitex Emulsion.                                                      upgrading       manufacturing       technology,    strengthening
    Nevertheless, there is one Singapore Green Label product,                operational systems, and taking concrete steps to maintain
    namely No Odor Medicare, which certification was not renewed             product quality while minimizing environmental impact. Some
    due to Avian Brands’ strategic considerations. This move reflects        of Avian Brands’ strategic steps related to the development of
    Avian Brands’ dedication to meet the needs of the market while           manufacturing facilities are described below:
    emphasizing continuous innovation.                                       a. Emissions and Energy Efficiency
 3. Launch of New Products                                                      • Modifying cooling tower pumps to optimize energy use,
    To complement its product portfolio and address the needs of                   resulting in more efficient energy consumption; and
    the communities, Avian Brands launched several new products                 • Installing solar-powered street lighting in the plant area as
    in 2024. These products are designed to expand Avian Brands                    part of the initiative to reduce carbon emissions and use
    market segmentation. The new products successfully launched                    renewable energy.
    by Avian Brands throughout 2024 are:                                     b. Manufacturing
    a. Avian Cling Water Based;                                                 • Construction of Melati Plant to increase manufacturing
    b. Boyo Politur Spray;                                                         capacity of No Drop and Avitex products by implementing
    c. No Drop Tile Grout;                                                         more efficient technology, resulting in energy savings of
    d. No Drop Dempul Instan;                                                      up to 50%; and
    e. No Drop Serat Fiber;                                                     • Conducting an upgrade of the mixer at BME Plant to
    f. GM 385 Perekat Bata Ringan Ekonomis;                                        increase the manufacturing capacity of Avitex Wizz
    g. Pro-X 208;                                                                  products, with the latest technology that delivers 50%
    h. No Drop Beton dan Batu Alam;                                                energy savings.
    i. Avian Non-Sag Epoxy Hemat;                                            c. Water Usage and Waste Management
    j. Supersilk Semi Kilap;                                                    • Adopting a cooling system designed to significantly
    k. No Drop Kolam Ikan;                                                         reduce water consumption; and
    l. GM 265 Acian Abu-Abu Ekonomis;                                           • Implementing rainwater harvesting programs to
    m. GM 27ª5 Acian Putih Ekonomis;                                               support operational needs and reduce dependence on
    n. Supersilk Basic; and                                                        conventional sources of clean water.
    o. Avian Cat Lapangan.                                                   These measures not only improve plant efficiency and
                                                                             productivity, but also reflect Avian Brands’ commitment to
                                                                             environmentally friendly and sustainable industry practices.




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                                                      Short-term Strategic Plans
6. Employee Development                                                 8. ESG Development
   HR development remains a top priority that Avian Brands                 To further strengthen its sustainability commitment, Avian
   implements in its short-term strategic plan. Avian Brands               Brands continues to add more sustainability-related product
   implements a range of structured employee training and                  certifications and consistently improve its ESG score assessments
   development programs, among others:                                     that are recognized by various parties. In this regard, 34 of
   a. Core Competency Training;                                            Avian Brands’ products are certified with the Singapore Green
   b. Technical Competency Training;                                       Label. Avian Brands has also managed to achieve various ESG-
   c. Generic Competency Training;                                         related awards from various parties. In addition, improved ESG
   d. Leadership Competency Program; and                                   scores from international rating agencies, such as EcoVadis
   e. Certification and Standardization Training                           and Sustainalytics, further solidify Avian Brands’ position as a
   In addition to improving employee quality, HR development also          standout performer in sustainability governance. This strategy
   seeks to improve their skills to face the challenges of a dynamic       is a critical foundation to support sustainable growth that adds
   market.                                                                 value to all stakeholders.
7. IT System Development
   Avian Brands continuously improves its IT system                     By implementing these strategic plans, Avian Brands is committed
   implementation to support more efficient and integrated              to delivering added value to its stakeholders and strengthening its
   operations. This includes the implementation of Warehouse            position as an innovative and sustainable market leader.
   Management System to improve warehouse management
   efficiency, modernization of warehouse and plant infrastructure
   to strengthen communication and data security, enhancement
   of Sales Force Automation application to support sales team
   productivity, and development of Human Resource Management
   System to improve digital HR management efficiency,
   employee productivity, and data-based decision making.


                                                      Long-term Strategic Plans
Avian Brands’ long-term vision is to become an integrated, environmentally friendly, leading, and trusted paint company in Indonesia.
In pursuit of realizing this Vision, Avian Brands is committed to its Mission of providing added value to stakeholders through the
development of various high-quality paints. In realizing the Vision and Mission, Avian Brands has formulated long-term strategies that are
oriented toward sustainability, innovation, efficiency, and resource development. The key pillars of Avian Brands’ long-term strategic plan
are described as follows:
1. Utilization of Advanced Technology for Production Efficiency         3. Improving Supply Chain Quality
   Avian Brands will continue to utilize the most advanced                 Strengthening of supply chain is a key pillar to support
   technology by upgrading manufacturing machinery and                     operational resilience. The efforts that will be undertaken
   equipment to improve operational efficiency. This includes:             include:
   a. Reduction of raw material consumption by utilizing more              a. Establishing strategic partnerships with suppliers of
      precise technology;                                                     high-quality raw materials to maintain a stable supply;
   b. Energy saving with more energy-efficient engines;                    b. Optimizing cooperation with freight forwarding vendors to
   c. Waste reduction to support more environmentally friendly                ensure efficient product delivery; and
      operations;                                                          c. Implementing a digital-based supply chain management
   d. Improving machine utilization to optimize manufacturing                 system to improve visibility and operational efficiency.
      capacity; and                                                     4. Integrating the ESG as the Foundation of Avian Brands’
   e. Utilizing reuse and recycling to maximize the value of               Operations
      production waste.                                                    Avian Brands will ensure that ESG principles become the
   This not only reduces operational costs but also increases              foundation of all business activities. Some of the main steps that
   product competitiveness in the market, with maintained quality          will be realized include:
   at a more competitive price.                                            a. Expanding the variety of environmentally friendly products
2. Development of Modern Laboratories and Expert Chemists                     and processes, thereby opening up opportunities for access
   for Product Innovation                                                     to green finance, such as green bond issuance, as well as
   Continuous investment in the development of modern                         improving appeal to sustainability-focused investors;
   laboratories is a priority to support RDI activities, allowing          b. Ensuring regulatory compliance, including information
   Avian Brands to stay updated with the latest technology and                disclosure and implementation of business ethics; and
   innovation requirements related to its products. With its facilities    c. Improving Avian Brands’ reputation in the international
   that are equipped with the latest technology and competent                 market by taking part in sustainability certifications and ESG
   chemists, Avian Brands will be able to:                                    assessments.
   a. Develop innovative new products according to market needs; 5. Human Resources Development
   b. Ensure product quality remains consistent and in line with           Avian Brands realizes that HR is a key asset that serves as the
      international standards; and                                         foundation and driving force for its business development
   c. Accelerate the timing of product launches to the market to           and sustainability going forward. Therefore, Avian Brands will
      outpace competitors.                                                 implement various strategies for HR development, including:
                                                                           a. Increasing employee engagement through programs that
                                                                              encourage employee participation;
                                                                           b. Improving productivity through skills training and
                                                                              development; and
                                                                           c. Attracting and retaining top talents to support the future
                                                                              growth of Avian Brands.




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                                                     Long-term Strategic Plans
 6. Inorganic Business Development                                       b. Improvement of customer data security and personal data
    Avian Brands will adopt business development strategies                 protection in accordance with applicable regulations; and
    through inorganic measures, among others:                            c. Implementation of data analytics for faster and more accurate
    a. Adding new business lines that complement Avian Brands’              decision-making.
       ecosystem as a paint manufacturer; and                         8. Distribution Network Expansion
    b. Acquiring or collaborating with other companies with strategic    To reach all parts of Indonesia, Avian Brands will continue to
       value to strengthen core business.                                expand its distribution network. This strategy includes opening
 7. Integrated IT System                                                 new DCs in strategic locations, allowing products to reach
    Development of IT systems will serve as the backbone for more        customers more quickly and efficiently.
    integrated operations. Therefore, Avian Brands has set several 9. Support from Company Value: CInTA
    focuses that will be realized in the framework of IT development,    The strategic initiatives undertaken by Avian Brands will be
    among others:                                                        supported by the implementation of its core values, namely the
    a. IT system upgrade to support seamless and digital-based           CinTA.
       business;




All initiatives undertaken by Avian Brands are part of the effort to achieve sustainable growth, both in terms of top line
(increased sales) and bottom line (increased profits), to provide optimal returns for all stakeholders. This strategy is materialized
through optimization of financial performance, such as revenue growth that is coupled with cost optimization, and better
management of balance sheet optimization through the strategies of working capital optimization, debt management, and
equity.

As a key source of revenue growth, Avian Brands will leverage the strengths of RDI to create innovative products that are
relevant to market needs. In addition, it is also actively exploring strategic opportunities for partnership and expanding its
reach to new customer groups, such as the project segment which has great potential, after previously focusing more on the
retail market. With this comprehensive approach, not only does Avian Brands strengthen its competitive edge but also creates
long-term value for its stakeholders.



Changes in Accounting Policies

The Consolidated Financial Statements of PT Avia Avian Tbk and its Subsidiaries have been prepared in accordance
with the Financial Accounting Standards (Standar Akuntansi Keuangan or “SAK”) issued by the Indonesian Institute of
Accountants (Ikatan Akuntan Indonesia or “IAI”). Over time, IAI continues to publish new standards, amendments, revisions,
and interpretations to update and improve accounting guidance relevant to the latest market and regulatory conditions.
Information regarding changes in accounting policies that are effective for financial years commencing on or after
January 1, 2024 is described below:

                  ISAK/Amendments to PSAK                                               Impacts on Avian Brands
 PSAK 201 (Amendment), “Presentation of Financial Statements”:
 Classification of Liabilities as Current or Non-Current.
 PSAK 201 (Amendment), “Presentation of Financial Statements”:                   Does not result in substantial changes to
 Non-current Liabilities with Covenants.                                 the Company’s accounting policies and no material effects
                                                                       on the amounts reported for the current or prior financial years.
 PSAK 207 (Amendment), “Statement of Cash Flows” and
 PSAK 107 (Amendment), “Financial Instruments: Disclosure”:
 Supplier Financing Arrangements.



Reason for Change in Accounting Policy
Changes in accounting policies in the Consolidated Financial Statements of PT Avia Avian Tbk and its Subsidiaries for
the financial years ended December 31, 2024 and 2023 are made to ensure that Avian Brands follow the accounting practices
that are in accordance with the applicable standards in the current year.




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                                        MANAGEMENT DISCUSSION AND ANALYSIS




Changes in Laws and Regulations with Significant Impacts on Avian Brands

In carrying out its operations, Avian Brands constantly reviews any changes in laws and regulations that could potentially affect
Avian Brands. This approach not only ensures timely compliance with applicable regulations, but also enables Avian Brands
to respond quickly to changes in the dynamic legal environment. Laws and regulations that were amended and/or recently
enacted by regulators throughout 2024 that significantly affect Avian Brands are described below:

                Regulations                             Impacts on Avian Brands                           Adjustments Made
 Regulation of the Minister of Public Works       All buildings of Avian Brands that already      Starting October 2025, all buildings of
   and Public Housing of the Republic of               have a Certificate of Occupancy            Avian Brands that already have the SLF,
 Indonesia Number 12 Year 2024 regarding                (Sertifikat Laik Fungsi or “SLF”)        must commence the processing of SBKBG.
     Building Construction Ownership                     are required to have SBKBG.
    Certificate (Surat Bukti Kepemilikan
      Bangunan Gedung or “SBKBG”).
   Circular Letter of the Minister of Industry   Mandatory reporting of industrial activities,     Starting July 2024, Avian Brands has
   No. 1 of 2025 concerning Submission of        which was previously done every semester,       adjusted to a quarterly industrial activity
  Industrial Data and Industrial Estate Data.       has now changed to every quarter.               reporting schedule, with reporting
                                                                                                      implementation managed by
                                                                                                              the Legal team.



Material Information After the Financial Statements Date

There is no material information that occurred in Avian Brands following the publication date of the PT Avia Avian Tbk and
Subsidiaries’ Consolidated Financial Statements for the financial year ended December 31, 2024 and 2023.



Business Continuity Information

Matters That Have a Significant Influence on Business Continuity
Throughout 2024, there were no negative events that had major impacts on our operational activities, both internal and
external. This is inseparable from the better risk management that has been performed by us.

Management Assessment to Manage Potentially Significant Influences
Supported by the business plan that has been presented in the business development strategy for 2024, the management
has assessed our ability to continue business activities in the future. The management believes that there are no material
uncertainties that may affect our ability to continue business activities.

Assumptions Used by Management in Assessment
In conducting the assessment, the management uses a number of assumptions, including:
1. Financial performance;
2. Operational performance;
3. Capital structure;
4. Regulation; and
5. Various risks, such as:
    a. Business risk;
    b. Operational risk;
    c. Resource risk;
    d. Compliance/legal risk;
    e. Financial risk; and
    f. Other risks caused by external factors.




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         Good
     Corporate
    Governance


 “Avian Brands is committed to thoroughly
         and consistently implementing GCG
   principles in all aspects of its operations.
   This commitment is manifested through
       implementing various guidelines and
  policies designed to ensure transparency,
            accountability, and compliance in
         conducting business. Through these
   measures, Avian Brands strives to create
        an environment that fosters integrity
          and maintains the confidence of all
  stakeholders, both internal and external.
This effort reflects Avian Brands’ dedication
      to achieving sustainable growth while
   upholding good governance principles.”


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Commitment to Implementing
Good Corporate Governance
Avian Brands’ commitment to implementing Good Corporate Governance (“GCG”) principles is constantly realized in
a consistent and comprehensive manner in all its operational activities, in order to improve Avian Brands’ performance and
value. The GCG implementation is not merely an obligation, but also a key strategy in creating a transparent, accountable, and
sustainable Avian Brands’ management. Through GCG implementation, Avian Brands also strives to improve the quality of its
decision-making and to conduct business activities in a healthy and ethical manner. This is inseparable from the importance of
GCG for Avian Brands, as it helps manage operations effectively, minimize risks, and maintain stakeholders’ confidence.

Avian Brands recognizes that the quality of its GCG implementation must be continuously upgraded in line with Avian Brands’
business development and the risks faced. Therefore, Avian Brands conducts continuous evaluation and adjustment to its
GCG practices to ensure that each aspect remains relevant and effective in facing dynamic business challenges. With this
commitment, Avian Brands strives to achieve sustainable growth and provide optimal added value to all stakeholders.

In this regard, Avian Brands has implemented 4 GCG pillars which represent an expansion of the basic values of TARIF
(Transparency, Accountability, Responsibility, Independence, and Fairness). Further information is described as follows:




                    Ethical Conduct                                                  Transparency


    In carrying out each business activity, Avian Brands              In maintaining objectivity in business management,
    always emphasizes honesty, respects all partiest,                 Avian Brands consistently provides material and
    fulfills commitments, and consistently builds and                 relevant information in an easily accessible and
    maintains moral values and trust. Furthermore,                    understandable manner for Shareholders and other
    Avian Brands at all times takes into account the                  stakeholders. Avian Brands has taken the initiative to
    interests of Shareholders and other stakeholders on               disclose not only information required by regulations
    the basis of fairness and equality, as well as ensuring           but also other crucial information that supports the
    independence in management to ensure that no                      decision-making processes of Shareholders, creditors,
    organ of Avian Brands dominates each other and that               and other stakeholders.
    no other party can intervene.




                    Accountability                                                   Sustainability


    Avian Brands can be held accountable for its                      Avian Brands remains compliant with all applicable
    performance transparently and reasonably. Therefore,              laws and regulations and is committed to carrying out
    Avian Brands’ management is always carried out in a               its responsibilities towards the community and the
    correct and calculated manner, in accordance with                 environment in order to contribute to the Sustainable
    Avian Brands’ interests while taking into account                 Development Goals through cooperation with all
    the Shareholders’ and other stakeholders’ interests.              relevant stakeholders. This represents Avian Brands’
    Accountability is one of the pillars that forms the main          strategic initiative to improve our quality of life in
    foundation for achieving sustainable performance.                 a way that is aligned with Avian Brands’ business
                                                                      interests and the sustainable development agenda.




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Integrated Good Corporate Governance Implementation Policy

As a holding company, Avian Brands is committed to implementing GCG principles in an integrated manner across its
Subsidiaries as reflected in the GCG Guidelines. With an integrated policy in place, Avian Brands strives to implement GCG
principles consistently across all group companies. This includes transparency in reporting, accountability in decision-making,
and compliance with regulations and business ethics. Avian Brands also conducts regular evaluation and monitoring to ensure
that GCG practices are appropriately implemented and provide optimal added value for all stakeholders. Through this policy,
Avian Brands further reinforces its firm foundation of governance to support sustainable growth within Avian Brands group.




Basis of Good Corporate
Governance Implementation
The implementation of GCG in Avian Brands refers to the provisions as described as follows:
1. The 1945 Constitution of the Republic of Indonesia;
2. Law No. 8 of 1995 concerning the Capital Market;
3. Law No. 40 of 2007 concerning Limited Liability Companies;
4. Financial Services Authority (Otoritas Jasa Keuangan or “OJK”) Regulations;
5. Indonesian Stock Exchange Regulations;
6. OJK Circular Letter No. 32/SEOJK.04/2015 concerning Guidelines for Corporate Governance of Public Companies;
7. Indonesian GCG General Guidelines issued by the National Committee on Governance Policy (Komite Nasional Kebijakan
   Governance or “KNKG”) with due observance to the ASEAN Corporate Governance Scorecard (“ACGS”);
8. Avian Brands’ Articles of Association; and
9. Avian Brands’ other guidelines and policies.

Avian Brands also has GCG Guidelines in place, which were stipulated on June 25, 2021 and last updated on March 24, 2022.
The GCG guidelines are a set of rules guiding the process of good corporate management and supervision. The guidelines
encompass the division of duties, authorities, and responsibilities, particularly for Shareholders, the Board of Commissioners,
and the Board of Directors, which are based on the principles of GCG.




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Structure of Good Corporate Governance
The GCG structure constitutes governance organs designed to ensure Avian Brands’ compliance with laws and regulations,
as well as address Avian Brands’ internal needs in sustainably improving the quality of GCG implementation. As a Limited
Liability Company, the GCG structure is formulated in accordance with the provisions of Law No. 40 of 2007 on Limited Liability
Companies, which stipulates the establishment of the General Meeting of Shareholders (“GMS”), the Board of Commissioners,
and the Board of Directors. In terms of the GCG model, Avian Brands adopts a two-tier system, where the Board of Commissioners
and the Board of Directors have separate but complementary authorities and responsibilities.

The Board of Commissioners is tasked with supervising Avian Brands’ management and providing strategic advice to the Board
of Directors, which is responsible for the day-to-day operational management of Avian Brands. This division of duties is detailed
in the laws and regulations as well as Avian Brands’ Articles of Association to ensure that each Avian Brands’ organ performs its
functions optimally and in accordance with the GCG principles. With a clear and defined governance structure, Avian Brands
is committed to conducting its operations in a transparent, accountable, and efficient manner. This not only encourages
compliance with applicable regulations but also promotes a healthy and sustainable business environment.




                                            GENERAL MEETING OF SHAREHOLDERS




                        The Board of                                                        The Board of
                       Commissioners                                                         Directors




                       The Nomination                                                                             The Related
     The Audit                              The Good Corporate         The Corporate         The Internal
                      and Remuneration                                                                          Party Transaction
    Committee                              Governance Committee          Secretary            Audit Unit
                         Committee                                                                                 Committee




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Mechanism of Good Corporate Governance
The GCG mechanism is designed to ensure that the established GCG structure operates effectively with a clear division of
duties for each Avian Brands’ organ. The GMS plays a key role as the highest authority in Avian Brands’ GCG structure,
where strategic decisions regarding Avian Brands’ future are carefully assessed, formulated and resolved. The Board of Directors
then implements such resolutions under the Board of Commissioners’ supervision.

In performing its supervisory duties, the Board of Commissioners is supported by a number of dedicated committees, namely
the Audit Committee, the Nomination and Remuneration Committee, and the Good Corporate Governance Committee.
Each committee serves a specific role in ensuring proper implementation of various supervisory aspects, from regulatory
compliance, performance evaluation, to implementation of fair and transparent remuneration policies. As for operational
management, the Board of Directors is in charge of the day-to-day implementation of Avian Brands’ activities, supported by
the Related Party Transaction Committee, the Corporate Secretary, and the Internal Audit Unit. In this regard, Avian Brands
also engages an independent external auditor to audit the Financial Statements and provide additional assurance that the
financial information presented by Avian Brands is accurate and reliable.




General Meeting of Shareholders
The GMS is the key pillar in Avian Brands’ GCG structure, with certain authorities that are not granted to the Board of
Commissioners or the Board of Directors, within the boundaries stipulated in the Limited Liability Company Law and Avian
Brands’ Articles of Association. As the highest organ, the GMS has the authority to determine long-term strategic directions,
formulate key policies, and assess the performance of the Board of Commissioners and Board of Directors. These resolutions
not only affect Avian Brands’ financial and operational performance, but also Avian Brands’ reputation and stakeholders’
confidence. The Board of Directors is responsible for implementing the GMS resolutions by ensuring that the adopted
strategies and policies consistently serve Avian Brands’ vision and mission. Meanwhile, the Board of Commissioners’ meticulous
supervision ensures that implementation is aligned with mandated GCG principles, while maintaining integrity, transparency,
and ethical values in all aspects of Avian Brands’ operations.



Rights of Shareholders

Avian Brands’ Shareholders are entitled to the following rights:

1. Attend the GMS and cast 1 vote per 1 share owned;
2. Authorize other parties in the event that the Shareholder is unable to attend the GMS;
3. Receive and examine the GMS materials at the latest 21 days prior to the GMS convention in order to allow Shareholders to
   vote during the proposed decision on the GMS agenda;
4. Have the opportunity to raise questions in each discussion and decision of the GMS agenda;
5. Have the opportunity to vote for, against, or abstain on each proposed decision of the GMS agenda;
6. Receive equal treatment from Avian Brands; and
7. Other rights based on the Articles of Association and other applicable regulations.




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Type of General Meeting of Shareholders

Based on the OJK Regulation No. 15/POJK.04/2020 concerning the Plan and Implementation of the General Meeting of
Shareholders of Public Companies and/or Avian Brands’ Articles of Association, the implementation of the GMS is divided into
two types, as described below
1. Annual GMS
   The annual GMS is a General Meeting of Shareholders convened every year. In accordance with the prevailing regulations,
   the Annual GMS must be convened no later than six months after the end of Avian Brands’ financial year. The Annual GMS
   includes the following agendas:
   a. Ratification of the Annual Report, descriptions of state and affairs of Avian Brands, including Annual Financial
       Statements;
   b. Determination of the use of net profit;
   c. Appointment of an external auditor registered with the OJK; and
   d. Other agendas proposed by the Board of Directors in the interest of Avian Brands or proposed by one or more
       Shareholders in accordance with the provisions of the Law and Avian Brands’ Articles of Association.
2. Extraordinary GMS
   The extraordinary GMS is a General Meeting of Shareholders that is convened at any time based on urgent matters in the
   interest of Avian Brands. Unlike the regularly scheduled Annual GMS, an Extraordinary GMS may be convened at any time
   in case of urgent resolutions that must be decided immediately and may not wait until the next Annual GMS.



Authority of the General Meeting of Shareholders

The GMS holds a pivotal role in the GCG structure, primarily as the highest authority in strategic decision-making,
which influences Avian Brands’ direction and sustainability. In carrying out this role, the GMS holds several authorities as
described below:
1. Exercise its rights to express opinions and obtain information relating to Avian Brands from the Board of Directors and the
   Board of Commissioners to the extent that it concerns the agenda of the meeting and does not conflict with the interests
   of Avian Brands;
2. Hold the Board of Commissioners and the Board of Directors accountable for the management of Avian Brands;
3. Amend the Articles of Association; and
4. Appoint and dismiss the Board of Commissioners and the Board of Directors.



Procedures for Convening General Meeting of Shareholders

The procedure for convening Avian Brands’ GMS complies with applicable laws and regulations, including Law No. 40 of 2007
on Limited Liability Companies, OJK Regulation No. 15/POJK.04/2020 on the Plan and Implementation of the General Meeting
of Shareholders of Public Companies, OJK Regulation No. 16/POJK.04/2020 on Implementation of the Electronic General
Meeting of Shareholders of Public Companies, as well as Avian Brands’ Articles of Association. Compliance with the procedures
outlined in the prevailing laws and regulations, allows Avian Brands to ensure that the GMS proceeds in an orderly, transparent,
and accountable manner, thereby facilitating strategic decision-making essential to Avian Brands’ growth and sustainability.



Voting Mechanism

The GMS voting mechanism is designed to ensure active participation and transparency in the decision-making process. In any
agenda of the GMS, the Chairman of the Meeting will provide an opportunity for the Shareholders to ask questions and/or give
opinions before voting takes place. This allows for open discussion and thorough consideration of any proposals or resolutions
to be adopted.

Pursuant to Article 12 paragraph (13) of Avian Brands’ Articles of Association, all resolutions of the GMS shall be made by
way of deliberation for consensus. This mechanism emphasizes the significance of consensus and mutual agreement among
Shareholders, reflecting of solidarity and democracy in Avian Brands’ decision-making. However, in the event that deliberation
for consensus fails to reach an agreement, resolutions shall be adopted through a voting mechanism. The voting process shall




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be conducted fairly and transparently, with each Shareholder entitled to vote in accordance with the number of shares they
hold. Voting results shall be publicly tallied and announced, ensuring that the resolutions adopted truly reflect the will of
the majority of Shareholders.



Conventions of General Meeting of Shareholders in 2024

Throughout 2024, Avian Brands convened 1 Annual GMS and did not convene any Extraordinary GMS. Further information
regarding the GMS convention is described as follows:

2024 Annual GMS

                                     Convention Stages of the 2024 Annual GMS




      Notification            Announcement                  Invitation              Implementation                GMS Resolutions

  Notified the Financial        Announced on              Announced on                   Convened on            The Meeting Summary
   Services Authority         February 27, 2024      March 13, 2024 through             April 4, 2024 at          was published on
  on February 20, 2024     through the websites of     the websites of Avian       09.49 – 11.20 (GMT+7)         April 5, 2024 on the
     through Letter        Avian Brands, Indonesia    Brands, Indonesia Stock     in Avian Brands Building     websites of Avian Brands,
  No. 014/AA/CORSEC/         Stock Exchange, and     Exchange, and Indonesia            Meeting Room,              Indonesia Stock
         II/2024.             Indonesia Central          Central Securities        Jl. Ahmad Yani No. 317,        Exchange, and on
                            Securities Depository.          Depository.            Surabaya, 60234, Jawa         April 6, 2024 on the
                                                                                       Timur, Indonesia.         website of Indonesia
                                                                                                                  Central Securities
                                                                                                                     Depository.


                                            Participants of the 2024 Annual GMS
                               The 2024 Annual GMS was attended by 59,595,151,446 shares with valid voting rights or 96.6710%
 The Shareholders              of 61,647,392,400,000 where these shares do not include treasury stock totaling 306,163,200 shares,
                               by considering the List of Shareholders as of March 8, 2024.
                               President Commissioner         Hermanto Tanoko
 The Board of Commissioners
                               Independent Commissioner       Mohammad Noor Rachman Soejoeti
                               Vice President Director        Ruslan Tanoko
                               Director                       Robert Christian Tanoko
 The Board of Directors
                               Director                       Kurnia Hadi Sinanto
                               Director                       Angelica Tanisia Jozar
 Independent Parties in the    Avian Brands appointed PT Bima Registra, as the Securities Administration Bureau, to count the votes
 Convention of the 2024        and/or validate the votes and appointed Dr. Susanti, S.H., M.Kn., a Notary in Surabaya City as the Public
 Annual GMS                    Notary, to verify the vote count in the 2024 Annual GMS.




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                                      GOOD CORPORATE GOVERNANCE




                                                Resolutions of the 2024 Annual GMS
                                                                 Agenda 1
                                                                  Agenda
Approval on Avian Brands’ Annual Report, including Avian Brands’ Audited Consolidated Financial Statements and the
Board of Commissioners’ Supervisory Duty Report for the financial year ended on December 31, 2023 and grant of release and discharge
of liability (acquit et de charge) to all members of Avian Brands’ Board of Directors for their management actions and to all members of
Avian Brands’ Board of Commissioners for their supervisory actions during the financial year ended on December 31, 2023.
                                                                Resolutions
1. Accepted and approved the Annual Report of Avian Brands for the financial year ended on December 31, 2023 and ratified the Audited
   Consolidated Financial Statements of Avian Brands and the Subsidiaries for financial year ended on December 31, 2023 which has
   been audited by Public Accounting Firm of Tanudiredja, Wibisana, Rintis & Rekan (a member firm of the PwC global network) with an
   unmodified opinion as stated in its report No. 00202/2.1025/AU.1/04/1737-2/1/II/2024 tertanggal February 27, 2024; and
2. Accepted and approved the Report of Supervisory Duties of the Board of Commissioners for the financial year ended on
   December 31, 2023, and grant of full release and discharge of liability (acquit et de charge) to all members of the Board of Directors
   and the Board of Commissioners of Avian Brands, for the management and supervisory actions during the 2023 financial year provided
   that those actions are reflected in the Annual Report, and the Financial Statements of Avian Brands for financial year ended on
   December 31, 2023, except for fraudulent, embezzlement, or other criminal acts.
            Voting Results                                                            Realization
Agree		               :   59,595,151,046 Fully realized. Avian Brands’ Financial Statements and Annual Report for the financial year
Abstain		             :              300 ended December 31, 2023 have been submitted to the regulator on February 28, 2024
Disagree		            :              100 and March 12, 2024 and have been posted on the website, and have not been amended
                                         following the GMS.
                                                                 Agenda 2
                                                                  Agenda
Determination of the use of Avian Brands’ net profit for the financial year ended on December 31, 2023.
                                                                Resolutions
1. Determining that according to Avian Brands’ Audited Consolidated Financial Statements as of December 31, 2023, Avian Brands’ net
   profit is amounted to IDR1,643,095,450,420.- ( “2023 Net Profit”);
2. Appropriating Avian Brands’ 2023 Net Profit as follows:
   a. an amount of IDR22.- per share will be distributed as cash dividends for the financial year ended on December 31, 2023 to the
      shareholders entitled to receive cash dividends, where the amount of cash dividends includes the interim dividends, with the
      following explanation:
      1) to ratify the distribution of interim dividends for the 2023 financial year from the 2023 Net Profit of IDR11.- per share or
         IDR681,489,111,600.- and the payment has been made on October 31, 2023 to the holders/owners of 61,953,555,600 shares of
         Avian Brands; and
      2) to distribute cash dividends for the 2023 financial year from 2023 Net Profit of IDR11.- per share to holders/owners of Avian Brands’
         shares who are entitled to dividend distribution, whereas treasury stock is not entitled to dividend distribution;
      with due observance of the prevailing laws and regulations, including the applicable tax regulations;
      As regards such dividend payments, the following terms and conditions shall apply:
      a) the remaining dividends for the 2023 financial year will be paid out for each share issued by Avian Brands as recorded in
         Avian Brands’ Register of Shareholders as at the record date, which will be determined by the Board of Directors;
      b) as regards the payments of the remaining dividends for the 2023 financial year, the Board of Directors shall withhold tax on such
         dividends in accordance with the tax regulations in force; and
      c) the Board of Directors is granted the power and attorney to stipulate any matters concerning the payment of the remaining
         dividends for the 2023 financial year, including (but not limited to):
         (1) stipulating the record date as referred to in letter a to determine the shareholders of Avian Brands eligible to receive payments
             on the remaining dividends for the 2023 financial year; and
         (2) stipulating the date of payment of the remaining dividends for the 2023 financial year and any other technical matters with
             due observance of the regulations of the Stock Exchange where Avian Brands’ shares are listed;
   b. the remaining of 2023 Net Profit is recorded as retained earnings that have not yet been determined.
3. Approved to give full authority and power to the Board of Directors of Avian Brands with the right of substitution to take all necessary
   actions in connection with the resolution, one and another thing, without any exceptions.
            Voting Results                                                            Realization
Agree		               :   59,595,151,046 Fully realized. The cash dividend was distributed on April 30, 2024 to the Shareholders of
Abstain		             :              300 Avian Brands whose names are recorded in Avian Brands’ Shareholder List on April 24, 2024.
Disagree		            :              100




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                                                Resolutions of the 2024 Annual GMS
                                                                 Agenda 3
                                                                  Agenda
Appointment of the Registered Public Accountant and/or Registered Public Accounting Firm that will Audit Avian Brands’ Consolidated
Financial Statements for the financial year ended on December 31, 2024.
                                                               Resolutions
1. To delegate authority to Avian Brands’ Board of Commissioners to appoint a Registered Public Accountant and/or Registered Public
   Accounting Firm in Indonesia that will conduct an audit of Avian Brands’ Consolidated Financial Statements for the financial year
   ending December 31, 2024, by taking into account the recommendation of the Audit Committee, provided that the Public Accountant
   and/or the Public Accounting Firm is registered in the Financial Services Authority, has a good reputation and has no conflict of interest
   with Avian Brands and its affiliates; and
2. To grant authority to Avian Brands’ Board of Directors to determine the honorarium of the Registered Public Accountant
   and/or Registered Public Accounting Firm and its appointment terms.
              Voting Results                                                         Realization
Agree		               :    58,886,680,431 Fully realized. The Board of Commissioners has appointed Public Accounting Firm
Abstain		             :               300 Teramihardja, Pradhono & Chandra (a member firm of Crowe global) to audit Avian Brands’
Disagree		            :       708,470,715 Consolidated Financial Statements for the financial year ended December 31, 2024 based
                                          on the Minutes of the Board of Commissioners Meeting No. 006/AA/BAR/KOM/X/2024 dated
                                          October 24, 2024.
                                                                 Agenda 4
                                                                  Agenda
Determination of the salary/honorarium and other allowances for members of Avian Brands’ Board of Commissioners and
the Board of Directors for the year 2024.
                                                               Resolutions
To grant power and authority to Avian Brands’ Board of Commissioners:
1. to determine the salary/honorarium and other allowances for members of the Board of Commissioners and Board of Directors of
   Avian Brands for the year 2024 through the Meeting of the Board of Commissioners; and
2. to determine the amount of distribution among members of the Board of Commissioners and members of the Board of Directors;
by taking into account the recommendations from the Nomination and Remuneration Committee, the provisions of the Articles of
Association, and the prevailing rules and regulations.
              Voting Results                                                          Realization
Agree		               :    59,420,098,946 Fully realized. The Board of Commissioners has determined the salary/honorarium and other
Abstain		             :             2,800 allowances for members of the Board of Commissioners and members of the Board of Directors
Disagree		            :       175,049,700 for the year 2024 through the Board of Commissioners Meeting based on the Minutes of the
                                          Board of Commissioners Meeting No. 002/AA/BAR/KOM/IV/2024 dated April 29, 2024.
                                                                 Agenda 5
                                                                  Agenda
Submission of an Accountability Report on the Realization of the Use of Proceeds from the Initial Public Offering.
                                                               Resolutions
The Fifth Agenda is only a Report in connection with the Realization of the Use of Proceeds from the Initial Public Offering, then there is
no voting/approval from the Meeting is conducted.
              Voting Results                                                          Realization
Agree 		              :-                   -
Abstain		             :-
Disagree 		           :-




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Conventions of General Meeting of Shareholders in 2023

Throughout 2023, Avian Brands convened 1 Annual GMS and 2 Extraordinary GMS. More information concerning the GMS
convention is described as follows:

2023 Annual GMS

                                      Convention Stages of the 2023 Annual GMS




      Notification            Announcement                    Invitation              Implementation              GMS Resolutions

  Notified the Financial        Announced on                 Announced on                  Convened on          The Meeting Summary
   Services Authority           March 6, 2023                March 21, 2023               April 13, 2023 at        was published on
  on February 27, 2023     through the websites of      through the websites of      10:00 – 11:45 (GMT+7)          April 14, 2023 on
     through Letter        Avian Brands, Indonesia      Avian Brands, Indonesia     in Avian Brands Building         the websites of
  No. 014/AA/CORSEC/         Stock Exchange, and          Stock Exchange, and             Meeting Room,         Avian Brands, Indonesia
         II/2023.             Indonesia Central            Indonesia Central         Jl. Ahmad Yani No. 317,     Stock Exchange, and
                            Securities Depository.       Securities Depository.      Surabaya, 60234, Jawa         Indonesia Central
                                                                                         Timur, Indonesia.       Securities Depository.


                                              Participants of the 2023 Annual GMS
                                 The 2023 Annual GMS was attended by 60,387,654,078 shares with valid voting rights or 97.4725% of
The Shareholders
                                 61,953,555,600 shares which constitute all of the shares issued by Avian Brands.
                                 President Commissioner         Hermanto Tanoko
The Board of Commissioners
                                 Independent Commissioner       Mohammad Noor Rachman Soejoeti
                                 Vice President Director        Ruslan Tanoko
                                 Director                       Robert Christian Tanoko
The Board of Directors
                                 Director                       Kurnia Hadi Sinanto
                                 Director                       Angelica Tanisia Jozar
Independent Parties in the       Avian Brands appointed PT Bima Registra, as the Securities Administration Bureau, to count the votes
Convention of the 2023           and/or validate the votes and appointed Dr. Susanti, S.H., M.Kn., a Notary in Surabaya City as the Public
Annual GMS                       Notary, to verify the vote count in the 2023 Annual GMS.


                                              Resolutions of the 2023 Annual GMS
                                                               Agenda 1
                                                                Agenda
Approval of the Annual Report including Audited Consolidated Financial Statements of Avian Brands and Supervisory Report of
the Board of Commissioners for the financial year ended on December 31, 2022, and the granting of full release and discharge
(acquit et de charge) to all members of the Board of Directors for the management actions and to all members of the Board of
Commissioners for the supervisory actions performed during the financial year ended on December 31, 2022.
                                                             Resolutions
1. To receive and approve the Annual Report for the financial year ended December 31, 2022 and ratify Avian Brands and the
   Subsidiaries’ Audited Consolidated Financial Statements for the financial year ended December 31, 2022 audited by the Public
   Accounting Firm of Tanudiredja, Wibisana, Rintis & Rekan (“a member firm of PwC global network “) with an unmodified opinion as
   set out in its report No. 00208/2.1025/AU.1/04/1737-1/1/II/2023 dated February 28, 2023; and
2. To receive and approve the Report on the Supervisory Function of the Board of Commissioners for the financial year ended
   December 31, 2022 and grant full release and discharge (acquit et de charge) to all members of the Board of Directors and the Board
   of Commissioners for their management and supervisory actions during the financial year 2022 to the extent that such actions
   are reflected in Avian Brands’ Annual Report and Financial Statements for the financial year ended December 31, 2022, with the
   exceptions of fraud, embezzlement, or other criminal acts.




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                                                Resolutions of the 2023 Annual GMS
            Voting Results                                                           Realization
Agree		               :   60,385,375,978 Fully realized. Avian Brands’ Financial Statements and Annual Report for the financial year ended
Abstain		             :        2,277,600 December 31, 2022 have been submitted to the regulator on March 2, 2023 and March 20, 2023
Disagree		            :              500 and have been posted on the website, and have not been amended following the GMS.
                                                                 Agenda 2
                                                                  Agenda
The determination of the use of Avian Brands’ net profit for the financial year ended December 31, 2022.
                                                               Resolutions
1. To determine that based on Avian Brands’ Audited Consolidated Financial Statements as of December 31, 2022, the total net profit of
   Avian Brands is IDR1,400,365,580,530.- (“2022 Net Profit”);
2. To determine the use of 2022 Net Profit as follows:
   a. IDR1,301,024,667,600.- or IDR21.- per share to be distributed as cash dividends for the financial year ended December 31, 2022
      to Shareholders who have the right to receive cash dividends, in which the amount of cash dividends includes interim dividends,
      with the following explanation:
      1) Authorize the distribution of interim dividends for the financial year 2022 from the 2022 Net Profit in the amount of IDR10.-
         per share or a total of IDR619,535,556,000.- and the payment has been made on December 6, 2022; and
      2) Distribute cash dividends for the financial year 2022 from the 2022 Net Profit in the amount of IDR11.- per share or a total of
         IDR681,489,111,600.-;
      to the holders/owners of 61,953,555,600 of Avian Brands’ shares, with due observance of the prevailing laws and regulations
      including the prevailing tax regulations;
      The following terms and conditions apply to the dividend payment:
      a) the remaining dividends for the financial year 2022 shall be paid for any share issued by Avian Brands that is registered in
         Avian Brands’ Shareholders List on the recording date determined by the Board of Directors;
      b) for the payment of the remaining dividends for the financial year 2022, the Board of Directors shall withhold dividend tax in
         accordance with applicable tax regulations; and
      c) the Board of Directors is authorized to determine matters relating to the payment of the remaining dividends for the financial year
         2022, including (but not limited to):
         (1) to determine the record date as referred to in letter a in determining Avian Brands’ shareholders who are entitled to receive
             payment of the remaining dividends for the financial year 2022; and
         (2) to determine the payment date of the remaining dividends for the financial year 2022 and other technical matters without
             prejudice to the regulations of the Stock Exchange where Avian Brands’ shares are listed;
   b. the remaining portion of 2022 Net Profit is recorded as unappropriated retained earnings.
3. To approve the granting of full authority and power to the Board of Directors with substitution rights to take all necessary actions in
   connection with the resolutions, one and another without any exception.
            Voting Results                                                           Realization
Agree		               :   60,169,648,401 Fully realized. The cash dividend was distributed on May 9, 2023 to the Shareholders of
Abstain		             :        2,277,600 Avian Brands whose names are recorded in Avian Brands’ Shareholder List on May 3, 2023.
Disagree		            :      215,728,077
                                                                 Agenda 3
                                                                  Agenda
The appointment of a Registered Public Accountant and/or Registered Public Accounting Firm to audit Avian Brands’ Consolidated
Financial Statements for the financial year ended December 31, 2023.
                                                               Resolutions
1. To delegate the authority to the Board of Commissioners to appoint a Public Accountant and/or Registered Public Accounting Firm in
   Indonesia to conduct an Audit on Avian Brands’ Consolidated Financial Statements for the financial year ended December 31, 2023,
   taking into account the recommendations of the Audit Committee, provided that such Public Accountant and/or Public Accounting
   Firm is registered with the Financial Services Authority, has a good reputation, and has no conflict of interest with Avian Brands and its
   affiliates; and
2. To grant the authority to the Board of Directors to determine the honorarium of the Public Accountant and/or Registered Public
   Accounting Firm and other requirements concerning the appointment.
            Voting Results                                                           Realization
Agree		               :   59,105,046,971 Fully realized. The Board of Commissioners has appointed Public Accounting Firm Tanudiredja,
Abstain		             :        2,277,600 Wibisana, Rintis & Rekan (a member firm of PwC global network) to audit Avian Brands’
Disagree		            :    1,280,329,507 Consolidated Financial Statements for the financial year ended December 31, 2023 based on
                                         the Minutes of the Board of Commissioners Meeting No. 005/AA/BAR/KOM/VIII/2023 dated
                                         August 30, 2023.




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                                               Resolutions of the 2023 Annual GMS
                                                               Agenda 4
                                                                Agenda
The determination of salary/honorarium and other allowances for members of the Board of Commissioners and the Board of Directors
for the year 2023.
                                                              Resolutions
To grant power and authority to the Board of Commissioners:
1. to determine the salary/honorarium and other allowances for members of the Board of Commissioners and the Board of Directors for
   the year 2023 through the Board of Commissioners Meeting; and
2. to determine the distribution amount among members of the Board of Commissioners and members of the Board of Directors;
by taking into account the recommendations from the Nomination and Remuneration Committee, the provisions of the Articles of
Association, and the prevailing rules and regulations.
             Voting Results                                                         Realization
Agree		              :    60,117,202,701 Fully realized. The Board of Commissioners has determined the salary/honorarium and
Abstain		            :         2,277,600 other allowances for members of the Board of Commissioners and the Board of Directors for
Disagree		           :       268,173,777 the year 2023 through the Board of Commissioners Meeting based on the Minutes of
                                         the Board of Commissioners Meeting No. 003/AA/BAR/KOM/VII/2023 dated July 3, 2023.
                                                               Agenda 5
                                                                Agenda
The submission of Accountability Report on the Realization of the Use of Proceeds from the Initial Public Offering.
                                                              Resolutions
The Fifth Agenda only constitutes a Report in connection with the Realization of the Use of Proceeds from the Initial Public Offering,
therefore no vote/approval from the Meeting is required.
             Voting Results                                                         Realization
Agree		              :-                   -
Abstain		            :-
Disagree		           :-



Extraordinary GMS on April 13, 2023

                           Convention Stages of the Extraordinary GMS on April 13, 2023




      Notification              Announcement                   Invitation              Implementation                 GMS Resolutions

  Notified the Financial        Announced on                  Announced on                 Convened on           The Meeting Summary
     Services Authority         March 6, 2023                 March 21, 2023              April 13, 2023 at         was published on
   on February 27, 2023    through the websites of       through the websites of     12:01 – 12:15 (GMT+7)           April 14, 2023 on
       through Letter      Avian Brands, Indonesia       Avian Brands, Indonesia    in Avian Brands Building          the websites of
No. 014/AA/CORSEC/II/2023.   Stock Exchange, and           Stock Exchange, and            Meeting Room,          Avian Brands, Indonesia
                              Indonesia Central             Indonesia Central        Jl. Ahmad Yani No. 317,      Stock Exchange, and
                            Securities Depository.        Securities Depository.     Surabaya, 60234, Jawa          Indonesia Central
                                                                                         Timur, Indonesia.        Securities Depository.




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                                    Participants of the Extraordinary GMS on April 13, 2023
                                  The Extraordinary GMS on April 13, 2023 was attended by 60,387,604,478 shares with valid voting rights
The Shareholders
                                  or 97.4724% of 61,953,555,600 shares which constitute all of the shares issued by Avian Brands.
                                  President Commissioner           Hermanto Tanoko
The Board of Commissioners
                                  Independent Commissioner         Mohammad Noor Rachman Soejoeti
                                  Vice President Director          Ruslan Tanoko
                                  Director                         Robert Christian Tanoko
The Board of Directors
                                  Director                         Kurnia Hadi Sinanto
                                  Director                         Angelica Tanisia Jozar
Independent Parties in the
                                  Avian Brands appointed PT Bima Registra, as the Securities Administration Bureau, to count the votes
Convention of
                                  and/or validate the votes and appointed Dr. Susanti, S.H., M.Kn., a Notary in Surabaya City as the Public
the Extraordinary GMS
                                  Notary, to verify the vote count in the Extraordinary GMS on April 13, 2023.
on April 13, 2023


                                    Resolutions of the Extraordinary GMS on April 13, 2023
                                                                  Agenda
                                                                  Agenda
Approval on Amendment to Article 19 paragraph (4) of Avian Brands’ Articles of Association concerning Work Plan, Fiscal Year,
and Annual Report.
                                                                Resolutions
1. Approved the Amendment to Article 19 paragraph (4) of Avian Brands’ Articles of Association concerning the Work Plan, Fiscal Year,
   and Annual Report, to be read as follows:
   Article 19
   4. The Board of Directors shall prepare an Annual Report and provide it in Avian Brands’ office to be examined by Shareholders as of
      the date of the invitation of the Annual GMS, and announce the balance sheet and profit or loss statement that has been audited
      by a public accountant registered with the OJK through the Stock Exchange website, Avian Brands’ website, and/or other media in
      accordance with laws and regulations in the field of Capital Market.
2. Approved to give Power of Attorney to the Board of Directors of Avian Brands with the right to transfer power (right of substitution) to
   declare the change in a separate deed before a Notary, including to submit notification to the Minister of Law and Human Rights of the
   Republic of Indonesia and report to other competent authorities, register and announce it and do everything needed and required by
   the applicable laws and regulations.
              Voting Results                                                         Realization
Agree 		              : 60,387,603,978       Fully realized through amendments to the Articles of Association based on the deed of Minutes
Abstain 		            :              -       of the Extraordinary General Meeting of Shareholders No. 3 dated April 13, 2023, drawn up by
Disagree 		           :           500        Dr. Susanti, S.H., M.Kn., a Notary in Surabaya City.



Extraordinary GMS on December 7, 2023

                        Convention Stages of the Extraordinary GMS on December 7, 2023




   Notification          Announcement              Disclosure of            Invitation            Implementation         GMS Resolutions
                                                   Information

    Notified the           Announced on             Announced on           Announced on               Convened on              The Meeting
 Financial Services      October 31, 2023         October 31, 2023      November 15, 2023         December 7, 2023            Summary was
    Authority on            through the              through the            through the             at 09:50 – 10:26          published on
 October 24, 2023           websites of              websites of            websites of            (GMT+7) in Avian      December 8, 2023 on
   through Letter          Avian Brands,          Avian Brands and         Avian Brands,            Brands Building          the websites of
    No. 089/AA/           Indonesia Stock          Indonesia Stock        Indonesia Stock           Meeting Room,          Avian Brands and
 CORSEC/X/2023.              Exchange,                Exchange.              Exchange,               Jl. Ahmad Yani         Indonesia Stock
                           and Indonesia                                   and Indonesia          No. 317, Surabaya,       Exchange, and on
                         Central Securities                              Central Securities       60234, Jawa Timur,      December 9, 2023
                            Depository.                                     Depository.                 Indonesia.         on the website of
                                                                                                                           Indonesia Central
                                                                                                                         Securities Depository.




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                                 Participants of the Extraordinary GMS on December 7, 2023
                                  The Extraordinary GMS on December 7, 2023 was attended by 60,028,324,812 shares with valid voting
The Shareholders
                                  rights or 96.8925% of 61,953,555,600 shares which constitute all the shares issued by Avian Brands.
                                  President Commissioner         Hermanto Tanoko
The Board of Commissioners
                                  Independent Commissioner       Mohammad Noor Rachman Soejoeti
                                  President Director             Wijono Tanoko
                                  Vice President Director        Ruslan Tanoko
The Board of Directors            Director                       Robert Christian Tanoko
                                  Director                       Kurnia Hadi Sinanto
                                  Director                       Angelica Tanisia Jozar
Independent Parties in
                                  Avian Brands appointed PT Bima Registra, as the Securities Administration Bureau, to count the votes
the Convention of the
                                  and/or validate the votes and appointed Dr. Susanti, S.H., M.Kn., a Notary in Surabaya City as the Public
Extraordinary GMS on
                                  Notary, to verify the vote count in the Extraordinary GMS on December 7, 2023.
December 7, 2023



                                 Resolutions of the Extraordinary GMS on December 7, 2023
                                                                 Agenda
                                                                 Agenda
Approval for Avian Brands’ Share Buyback.
                                                              Resolutions
1. Approving share buyback of Avian Brands’ shares that have been issued and listed on the Indonesia Stock Exchange of up to
   1,425,000,000 shares of Avian Brands or approximately 2.3% of the entire issued and paid-up capital of Avian Brands, with funds
   allocation of up to IDR1,000,000,000,000.- including transaction costs, trading costs, and other costs in connection with the buyback
   of Avian Brands’ shares, to be conducted in stages within a maximum period of 18 months since the share buyback is approved by the
   Meeting. The share buyback will be conducted in accordance with applicable regulations; and
2. Approving to grant authority and/or power of attorney to the Board of Directors of Avian Brands to take all necessary actions
   in connection with the implementation of the resolution of the Meeting as referred to in point 1 above, including but not limited
   to determining the terms and conditions on the implementation of the buyback of Avian Brands’ shares and/or stating a separate
   resolution in a separate deed before a Notary, with due observance of the prevailing laws and regulations.
            Voting Results                                                          Realization
Agree		              :   60,028,322,412 The resolutions of the Extraordinary GMS agenda could not be fully realized in 2024, considering
Abstain		            :              400 that the share buyback period is still ongoing and shall be completed at the latest on
Disagree		           :            2,000 June 7, 2025.




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The Board of Commissioners
The Board of Commissioners is an organ of Avian Brands that has the collective duties and responsibilities to supervise and
advise the Board of Directors regarding Avian Brands management, and to ensure that GCG principles are implemented
at all levels of the organization. The Board of Commissioners constantly carries out its duties and responsibilities in an
independent manner to maintain integrity and objectivity in every decision. Such independence also allows decision-making
to be conducted in a manner that avoids conflicts of interest that could interfere with the Board of Commissioners’ ability
to independently and critically carry out its duties and responsibilities. The Board of Commissioners also ensures consistent
implementation of GCG policies and practices, thereby creating a transparent, accountable and ethical corporate culture, and
thus contributing to Avian Brands’ sustainable performance.



The Board of Commissioners Charter

Avian Brands has the Board of Commissioners Charter in place, which was stipulated on August 16, 2021
(“Board of Commissioners Charter”). The Board of Commissioners Charter is used as a guideline for the Board of Commissioners
to carry out the supervisory function on Avian Brands and the Board of Directors based on GCG principles in realizing
the Vision, Mission, and Values of Avian Brands, based on, in particular, Avian Brands’ Articles of Association and, in general,
the prevailing laws and regulations.



Composition of the Board of Commissioners

The composition of the Board of Commissioners, as stipulated in Article 16 paragraph (1) of Avian Brands’ Articles of
Association, consists of at least 2 members, one of whom serves as President Commissioner and the other as Independent
Commissioner. This composition is selected by taking into account the diversity in terms of educational background,
professional experience, age, and expertise to ensure that the Board of Commissioners possesses wide-ranging capabilities
and perspectives in carrying out its supervisory and advisory functions to the Board of Directors. Such diversity is also
expected to contribute to achieving Avian Brands’ strategic and operational objectives and ensure effective and consistent
GCG implementation. The Board of Commissioners’ appointment and dismissal process falls under the prerogative of the GMS,
with the Board of Commissioners having 5-year term of office. In 2024, the composition of the Board of Commissioners consists
of 2 members, namely:

                            Name                                                            Position
 Hermanto Tanoko                                                                    President Commissioner
 Mohammad Noor Rachman Soejoeti                                                   Independent Commissioner



Dual Appointment of the Board of Commissioners

The Board of Commissioners Charter regulates the terms regarding the dual appointment of Avian Brands’
Board of Commissioners, as described as follows:
1. The Board of Commissioners members may hold dual appointments as:
   a. The Board of Directors member in a maximum of 2 other Issuers or Public Companies; and
   b. The Board of Commissioners member in a maximum of 3 other Issuers or Public Companies;
2. If a Board of Commissioners member does not hold dual appointments as a Board of Directors member, he/she may hold
   dual appointments as a Board of Commissioners member in a maximum of 4 other Issuers or Public Companies;
3. A Board of Commissioners member may serve as a member of at most 5 committees in Avian Brands and other Public
   Companies in which he/she also serves as a member of the Board of Directors or Board of Commissioners; and
4. The dual appointment mentioned in point 3 above may only be carried out provided that it does not conflict with other
   laws and regulations.




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Independent Commissioner

An Independent Commissioner is a Board of Commissioners member selected according to certain criteria that ensure he
has no financial, management, shareholding, and/or familial relationships with other Board of Commissioners members,
Board of Directors members, and/or Controlling Shareholders. These criteria aim to maintain the Independent Commissioner’s
independence, enabling him to act independently in accordance with GCG principles. Independent Commissioner’s presence
is intended to foster a climate of objective and fair decision-making, maintain fairness in every Avian Brands policy, and
ensure that all actions are taken transparently and free from conflicts of interest that could adversely impact Avian Brands.
Further, the Independent Commissioner is also expected to bring balance between the interests of majority and minority
shareholders, including public shareholders and other stakeholders.

Avian Brands has appointed 1 member of the Board of Commissioners as an Independent Commissioner, representing 50% of
the total members of the Board of Commissioners. This measure not only meets, but also exceeds the minimum requirements
stipulated in OJK Regulation No. 33/POJK.04/2014 regarding the Board of Directors and Board of Commissioners of Issuers or
Public Companies (“POJK 33/2014”), which stipulates that at least 30% of the members of the Board of Commissioners must
be Independent Commissioners. In line with the foregoing, the appointment of Mr. Mohammad Noor Rachman Soejoeti as
Independent Commissioner has also satisfied all the criteria required under POJK 33/2014 as described below:

                                 Description of Criteria                                     Mohammad Noor Rachman Soejoeti
 Not a person who works or has the authority and responsibility to plan, lead, control, or
 supervise activities of Avian Brands within the last 6 months, except for reappointment
 as Independent Commissioner for the next period.
 Not holding any shares, either directly or indirectly, in Avian Brands.

 Not having any affiliation with Avian Brands, members of the Board of Commissioners,
 members of the Board of Directors, Main Shareholders, or Controlling Shareholders of
 Avian Brands.
 Not having any business relationship, either directly or indirectly, related to Avian
 Brands’business activities.



Duties and Responsibilities of the Board of Commissioners

The Board of Commissioners Charter regulates the duties and responsibilities of the Board of Commissioners, as one of
the main organs in Avian Brands’ GCG structure. The Board of Commissioners is collectively responsible for supervising
the Board of Directors’ policies and performance as well as providing strategic advice to ensure that Avian Brands operates
efficiently, transparently and in accordance with GCG principles. Further information on the duties and responsibilities of
the Board of Commissioners is described as follows:
1. Supervising the management of Avian Brands by the Board of Directors, both in regards to Avian Brands and its business,
     as well as providing advice to the Board of Directors;
2. Performing specifically-assigned tasks in accordance with the Articles of Association, applicable laws and regulators,
     and/or based on the resolutions of the GMS;
3. Performing duties, responsibilities, and authorities in accordance with the provisions of Avian Brands’ Articles of Association
     and the resolutions of the GMS, including proposing the appointment of a Public Accountant and/or Public Accounting
     Firm that will conduct audit services on Avian Brands’ Financial Statements;
4. Directing, monitoring, and evaluating the implementation of Avian Brands’ strategic policies;
5. Implementing and ensuring the implementation of risk management and GCG principles in each of Avian Brands’ business
     activities, at all organizational levels or stages;
6. Evaluating and approving Avian Brands’ work plan;
7. Assisting and encouraging efforts in fostering and developing Avian Brands;
8. Forming the Audit Committee as well as other committees in accordance with the prevailing laws and regulations;
9. Ensuring that the supporting committees of the Board of Commissioners have effectively performed their duties and
     responsibilities;
10. Evaluating the performance of the committees assisting the Board of Commissioners in performing their duties and
     responsibilities at the end of each financial year; and
11. Convening the Annual GMS and other GMS in accordance with their authority as regulated by laws and regulations as well
     as the Articles of Association.



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Division of Duties of the Board of Commissioners

Avian Brands has also established a division of duties among Board of Commissioners members to facilitate the effective
and efficient performance of the Board of Commissioners’ collective duties and responsibilities. This division of duties
was stipulated under the Minutes of the Meeting of the Board of Commissioners No. 006/AA/BAR/KOM/IX/2023 dated
September 19, 2023. This measure aims to ensure that each Board of Commissioners member performs their responsibilities in
an optimal and efficient manner. With this division of duties, each Board of Commissioners member can focus on specific areas
according to their respective expertise and experience, thus allowing for more rigorous supervision of various operational and
strategic aspects of Avian Brands. The duties and responsibilities of each member of the Board of Commissioners are described
as follows:

      Name              Position                                      Duties and Responsibilities
 Hermanto Tanoko    President          Mr. Hermanto is responsible to:
                    Commissioner       • coordinate the activities of the Board Commissioners and ensure that each member of the
                                         Board of Commissioners could express his opinion based on sufficient information;
                                       • supervise and provide advice to the Board of Directors in carrying out the management of
                                         Avian Brands;
                                       • provide opinion and approval of Avian Brands’ Annual Work Plan and Budget as well as
                                         other work plans prepared by the Board of Directors, in accordance with the provisions of
                                         Avian Brands’ Articles of Association; and
                                       • provide a report on the supervisory duties that have been carried out during the last financial
                                         year to the GMS.
 Mohammad Noor      Independent        Mr. Noor is responsible for:
 Rachman Soejoeti   Commissioner       • as Chairman of the Audit Committee;
                                       • as Chairman of the Nomination and Remuneration Committee;
                                       • carry out supervision in the field of capital market legal compliance;
                                       • examine and review periodic reports and Annual Report prepared by the Board of Directors;
                                         and
                                       • carry out other obligations within the framework of supervisory duties and providing advice,
                                         as long as they do not conflict with statutory regulations, Articles of Association, and/or GMS
                                         decisions.



Decisions Requiring the Board of Commissioners’ Approval

Avian Brands has determined that certain decisions affecting Avian Brands’ long-term direction and sustainability, must be
approved by the Board of Commissioners prior to implementation thereof, as stipulated in Avian Brands’ Articles of Association.
The Board of Commissioners has the authority to review and approve such strategic decisions to ensure they align with
Avian Brands’ Vision, Mission, and Values. In addition, the Board of Commissioners also ensures that these decisions support
Avian Brands’ stability and sustainable growth. Decisions that require the Board of Commissioners’ approval are described as
follows:
1. Selling, pledging, or otherwise disposing of rights to immovable property belonging to Avian Brands;
2. Binding Avian Brands as guarantor;
3. Establishing a new business or investing;
4. Transferring investment in other companies, both domestic and overseas;
5. Receiving loans from any party;
6. Giving loans to any party save for loans in business activities and loans to Avian Brands’ employees and Subsidiaries; and
7. Opening branches or representative offices, both inside and outside the territory of the Republic of Indonesia.



The Board of Commissioners Meeting

Meeting Policy
The Board of Commissioners implements its meeting policy in accordance with the provisions stipulated in POJK No. 33/2014
and Avian Brands’ Articles of Association. Under this policy, internal meetings must be convened at least once every two
months. Meanwhile, joint meetings between the Board of Commissioners and the Board of Directors are scheduled to convene
no fewer than once every four months. These two types of meetings are essential to ensure that all decisions and measures
taken by Avian Brands are aligned with Avian Brands’ Vision, Mission, and Values.




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Meeting Convention
Throughout 2024, the Board of Commissioners has convened 6 internal meetings and 12 joint meetings with the Board of
Directors. Information on the number of meetings and meeting attendance by members of the Board of Commissioners
is as follows:

                                        Internal Meetings of                      Joint meetings with
                                                                                                                    GMS
                                    the Board of Commissioners                   the Board of Directors
    Name           Position                                                                                         2024
                               Number of Number of        Attendance Number of Number of           Attendance
                                                                                                                   Annual
                                Meeting   Meeting             (%)     Meeting   Meeting                (%)
                                                                                                                    GMS
 Hermanto       President
                                    6            6           100.00         12            11           91.67
 Tanoko         Commissioner
 Mohammad
                Independent
 Noor Rachman                       6            6           100.00         12            11           91.67
                Commissioner
 Soejoeti



Competence Development of the Board of Commissioners

Policy on Competence Development of the Board of Commissioners
Avian Brands has adopted a policy that regulates the implementation of the Board of Commissioners’ competence
development program in order to improve the quality of supervision and direction to the Board of Directors. In accordance
with the Board of Commissioners Charter, members of the Board of Commissioners are required to consistently upgrade their
knowledge and competence, concerning the latest developments in economy, finance, related industries, regulations, and
other matters related to Avian Brands. This development program includes various activities, such as training and education
programs, seminars, visits, benchmarking, and brainstorming sessions.

Information concerning the competence development programs participated by members of the Board of Commissioners
throughout 2024 has been disclosed in the Company Profile Chapter, particularly in the Profile section of each member of
the Board of Commissioners.



Orientation Program for New Members of the Board of Commissioners

Avian Brands has implemented a policy that regulates the orientation program for newly appointed members of
the Board of Commissioners. The program is designed to provide new members of the Board of Commissioners with a
thorough understanding of Avian Brands’ complete profile, including its unique characteristics, core values, and the business
processes that underpin its operations. By obtaining an in-depth understanding of Avian Brands’ dynamics in a short amount
of time, the new members of the Board of Commissioners can effectively take on their roles and responsibilities in supporting
Avian Brands’ long-term vision and strategy. The orientation program for the newly appointed Board of Commissioners
includes, among others:
1. Knowledge of Avian Brands, among others:
     a. Avian Brands’ Vision, Mission, purposes, and objectives;
     b. Avian Brands’ strategy;
     c. Avian Brands’ medium and long-term plans;
     d. Avian Brands’ operational performance;
     e. Avian Brands’ financial performance; and
     f. Avian Brands’ risk management;
2. Knowledge concerning the designation of the Board of Commissioners, among others:
     a. Duties, responsibilities, and authorities of the Board of Commissioners;
     b. Working time;
     c. Relationship with members of the Board of Directors; and
     d. Relevant rules/provisions.

Considering that the composition of Avian Brands’ Board of Commissioners in 2024 remains the same as the previous year,
this year, Avian Brands did not conduct any orientation programs for the new members of the Board of Commissioners.




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Performance Assessment of the Board of Commissioners

                             Policy, Procedure, and Implementation of Performance Assessment
Policy concerning performance assessment of the Board of Commissioners is based on the Performance Assessment Policy of
the Board of Commissioners and the Board of Directors of Avian Brands, which was stipulated on December 27, 2021, as well
as other relevant regulations. With this policy, each member of the Board of Commissioners assesses the performance of the
Board of Commissioners collegially, rather than individually. This assessment is designed to evaluate the effectiveness and cooperation of
all members of the Board of Commissioners in carrying out their supervisory and advisory duties to the Board of Directors.
                                                                Assessor
The performance assessment of the Board of Commissioners is conducted periodically once a year by each member. This assessment
process takes into consideration the achievement of the agreed assessment aspects.
                                               Aspects of Performance Assessment
The Board of Commissioners’ performance assessment involves various essential aspects. These aspects are designed to present
a comprehensive picture of the Board of Commissioners’ collegial contribution to achieving of Avian Brands’ strategic objectives.
The Board of Commissioners’ performance assessment aspects are described as follows:
1. Supervising the management of Avian Brands performed by the Board of Directors;
2. Reviewing, examining, and approving Avian Brands’ annual work plan;
3. Performing tasks specifically assigned to the Board of Commissioners in accordance with Avian Brands’ Articles of Association,
   applicable laws and regulations, and/or GMS resolutions;
4. Performing duties and responsibilities in accordance with the provisions of Avian Brands’ Articles of Association and the resolutions of
   the GMS;
5. Conforming to Avian Brands’ Articles of Association as well as applicable laws and regulations, and the obligations to perform duties in
   accordance with the principles of professionalism, efficiency, transparency, independence, accountability, responsibility, and fairness,
   including the convention of the Board of Commissioners Meetings in accordance with applicable regulations;
6. Evaluating performance during the financial year, assessed based on the effectiveness of supervision and contribution to achieving
   Avian Brands’ strategic targets.
7. Measuring the Board of Commissioners’ competence in carrying out its duties and responsibilities, including knowledge and expertise
   relevant to Avian Brands’ industry; and
8. Measuring level of attendance at Board of Commissioners meetings, both internal and joint meetings with the Board of Directors.
                                                         Assessment Results
Based on the 2024 performance assessment procedures and criteria, each Board of Commissioners member is assessed to have
optimally performed their duties and responsibilities. This assessment result reflects the Board of Commissioners’ competence and
dedication in supervising Avian Brands’ operations. Avian Brands’ robust performance in 2024 is a testament to effective supervision and
strategic direction from the Board of Commissioners. This success reflects the Board of Commissioners’ firm commitment to supporting
Avian Brands’ stability and growth, as well as strengthening stakeholders’ confidence in the Board of Commissioners’ capacity to safeguard
Avian Brands’ sustainability and future success. In addition, throughout 2024, the Board of Commissioners has convened 6 internal
meetings and 12 joint meetings with the Board of Directors with topics in accordance with the 2024 work plan and matters of concern to
the Board of Commissioners and the Board of Directors.



Performance Assessment of Committees Under the Board of Commissioners

                             Policy, Procedure, and Implementation of Performance Assessment
The performance assessment policy of committees under the Board of Commissioners aims to ensure that each committee has carried
out its duties and responsibilities effectively and efficiently. This assessment also aims to identify areas that require improvement and
development. Results of the assessment are subsequently factored into the reappointment process of committee members, ensuring that
only the most accomplished individuals may remain to support the Board of Commissioners in carrying out its supervisory and advisory
functions towards the Board of Directors.
                                                                Assessor
Performance assessment of committees under the Board of Commissioners is conducted by the Board of Commissioners periodically at
the end of each financial year.
                                               Aspects of Performance Assessment
The performance assessment process for committees under the Board of Commissioners involves a careful evaluation of the assignment
reports and annual reports on the performance of each committee’s activities. Performance assessment aspects for committees under
the Board of Commissioners are described as follows:
1. Realization of work plan;
2. Attendance in committee meetings;
3. Quality of supervision; and
4. Recommendations provided.




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                                      Results of Performance Assessment
The Audit Committee      Based on the procedure and criteria for performance assessment conducted in 2024, the Audit
                         Committee has demonstrated effective performance in carrying out its duties and responsibilities,
                         related to overseeing and evaluating audits on the Financial Statements as well as on Avian Brands’
                         internal control system over all aspects of Avian Brands’ operations. The Audit Committee is also
                         assessed to have actively contributed to ensuring compliance with applicable audit standards, as well
                         as strengthening resilience and transparency in Avian Brands’ risk management process. In addition,
                         throughout 2024, the Audit Committee has convened 5 internal meetings with topics in accordance
                         with the 2024 work plan and matters of concern to the Audit Committee.
The Nomination and       Based on the procedure and criteria for performance assessment conducted in 2024, the Nomination
Remuneration Committee   and Remuneration Committee has demonstrated effective performance in supporting the functions
                         of the Board of Commissioners in terms of providing appropriate proposals regarding remuneration
                         and nomination systems and policies for the Board of Commissioners and the Board of Directors.
                         In addition, throughout 2024, the Nomination and Remuneration Committee has convened 3 internal
                         meetings with topics in accordance with the 2024 work plan and matters of concern to the Nomination
                         and Remuneration Committee.
The Good Corporate       Based on the procedure and criteria for performance assessment conducted in 2024,
Governance Committee     the Good Corporate Governance Committee has demonstrated effective performance in supporting
                         the functions of the Board of Commissioners, through addressing any reports of violations of the
                         Business Ethics and Code of Conduct with utmost rigor and professionalism. The Good Corporate
                         Governance Committee also offers effective recommendations for resolving violations, including
                         appropriate sanctions for the parties involved. The Good Corporate Governance Committee
                         has also assisted the Board of Commissioners in periodically reviewing Avian Brands’ ESG data.
                         The Good Corporate Governance Committee’s commitment to maintaining integrity, transparency,
                         and compliance with applicable rules, has contributed to strengthening Avian Brands’ GCG
                         implementation. These positive results reflect the Good Corporate Governance Committee’s
                         dedication to constantly improving ethical standards, compliance and ESG performance across all
                         aspects of Avian Brands’ operations. In addition, throughout 2024, the Good Corporate Committee
                         has convened 4 internal meetings with topics in accordance with the 2024 work plan and matters of
                         concern to the Good Corporate Governance Committee.




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The Board of Directors
The Board of Directors is an organ of Avian Brands that plays a role in managing Avian Brands’ operations in accordance with
the established Vision and Mission. The Board of Directors is fully responsible for making strategic decisions and managing
all aspects related to Avian Brands’ operations. The Board of Directors is also responsible for representing Avian Brands,
both inside and outside the court, in accordance with Avian Brands’ Articles of Association and prevailing laws and regulations.
As Avian Brands’ main representative, not only does the Board of Directors actively carry out its legal role in various forums,
but it also collaborates together to optimize the use of Avian Brands’ resources. This includes establishing general policies,
setting long-term goals, and ensuring Avian Brands’ sustainability and continued growth.

Each member of the Board of Directors has specific roles and responsibilities based on their division of duties and
authority. Nevertheless, the Board of Directors works within a collaborative framework to ensure that all strategic measures
and resolutions are aligned with Avian Brands’ Vision and deliver maximum benefits to all Avian Brands’ stakeholders.
With this approach, not only does the Board of Directors contribute to the effective achievement of Avian Brands’ business
objectives, but it also ensures transparency, accountability and responsibility in Avian Brands management.


The Board of Directors Charter
Avian Brands has the Board of Directors Charter in place, which was stipulated on August 16, 2021 (“Board of Directors Charter”).
The Board of Directors Charter is used as a guide for the Board of Directors in performing their work effectively, efficiently,
and transparently and based on the principles of GCG in realizing the Vision, Mission, and Values of Avian Brands, based on,
in particular, Avian Brands’ Articles of Association and, in general, the prevailing laws and regulations.


Composition of the Board of Directors
The composition of the Board of Directors, as stipulated in Article 13 paragraph (1) of Avian Brands’ Articles of Association,
consists of at least 3 members. This composition is selected by taking into account the diversity in terms of educational
background, professional experience, age, gender, and expertise to ensure that the Board of Directors possesses wide-ranging
capabilities and perspectives in carrying out Avian Brands management functions. Such diversity is also expected to contribute
to achieving Avian Brands’ strategic and operational objectives and ensure effective and consistent GCG implementation.
The Board of Directors’ appointment and dismissal process falls under the prerogative of the GMS, with the Board of Directors
having a 5-year term of office. In 2024, the composition of the Board of Directors consists of 5 members, namely:

                             Name                                                           Position
 Wijono Tanoko                                                                         President Director
 Ruslan Tanoko                                                                       Vice President Director
 Robert Christian Tanoko                                                                    Director
 Kurnia Hadi Sinanto                                                                        Director
 Angelica Tanisia Jozar                                                                     Director



Dual Appointment of the Board of Directors
The Board of Directors Charter regulates the terms regarding dual appointments that the members of the Board of Directors
may hold. This aims to ensure that each member of the Board of Directors focuses on their duties and responsibilities in
Avian Brands, without any potential conflict of interest or overlap in decision-making. This arrangement supports transparency,
integrity, and effectiveness in Avian Brands management, so that adopted policies are consistent with GCG principles.
Information regarding the dual appointment of the Board of Directors is described as follows:
1. The Board of Directors members may hold dual appointments as:
    a. The Board of Directors member in 1 other Issuer or Public Company;
    b. The Board of Commissioners member in a maximum of 3 other Issuers or Public Companies; and
    c. Committee member in a maximum of 5 committees in Avian Brands or other Public Company in which he/she is
        a Board of Directors member or a Board of Commissioners member; and
2. Dual appointments mentioned in the points above may only be carried out provided that it does not conflict with other
    laws and regulations.


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Independence
The Board of Directors always carries out its duties and responsibilities by prioritizing independence and without bias towards
any other party’s interests. Each member of the Board of Directors works with high of professionalism and prioritizes the
interests of Avian Brands and all parties involved. The Board of Directors’ independence assures that every decision is made
based on objective analysis, free from any party’s pressure or influence. This ensures that the implemented policies not only
support Avian Brands’ long-term growth, but also fulfill stakeholders’ expectations and needs in a fair and transparent manner.


Duties and Responsibilities of the Board of Directors
The duties and responsibilities of the Board of Directors are based on the Board of Directors Charter, which regulates the
authority in managing Avian Brands’ daily and strategic operations. The Board of Directors is fully responsible for taking strategic
decisions to achieve Avian Brands’ Vision and Mission. The Board of Directors plays a key role in designing and executing
business strategies, managing risks, overseeing finances, and ensuring compliance with applicable regulations. The Board of
Directors is also tasked with maintaining high ethical standards, ensuring transparency in reporting, and maintaining good
relationships with all stakeholders. Further information on the duties and responsibilities of the Board of Directors is described
as follows:
1. Executing, and bearing the responsibilities for, the management of Avian Brands for Avian Brands’ interests in accordance
    with the purposes and objectives of Avian Brands which have been stipulated in the Articles of Association;
2. Managing Avian Brands in accordance with the authorities and responsibilities as stipulated in the Articles of Association
    and the prevailing laws and regulations;
3. Managing Avian Brands’ assets in accordance with the prevailing laws and regulations;
4. Implementing risk management system and GCG principles in each of Avian Brands’ business activities at all organizational
    levels or stages;
5. Establishing Avian Brands’ organizational structure and working procedures;
6. Convening Annual GMS and other GMS in accordance with the Articles of Association as well as the laws and regulations;
    and
7. Forming supporting committees in accordance with the prevailing laws and regulations, and evaluating the performance
    of such committees at the end of each financial year.


Division of Duties of the Board of Directors
The Board of Directors also has a division of duties among each member as stipulated in the Circular Decree of the Board of
Directors No. 013/AA/SK/DIR/IX/2023 dated September 20, 2023. This division is aimed to ensure that each member of the
Board of Directors can carry out their duties and responsibilities effectively and efficiently. Therefore, each individual on the
Board of Directors has a clear role in managing various operational and strategic aspects of Avian Brands, ensuring timely
decision-making, and directing the achievement of Avian Brands’ short-term and long-term goals. The duties and responsibilities
of each member of the Board of Directors are described as follows:

      Name               Position                                       Duties and Responsibilities
 Wijono Tanoko       President Director   Mr. Wijono is responsible for the operation of Avian Brands as a whole. The President Director
                                          oversees the other four Directors.
 Ruslan Tanoko       Vice President       Mr. Ruslan holds the responsibility as the Vice President Director and has the duties and
                     Director             functions concerning Avian Brands’ business development including sales and marketing,
                                          as well as overseeing Avian Brands’ Information Technology Division, Sales Division,
                                          and Marketing Division.
 Robert Christian    Director             Mr. Robert is responsible for and has the duties and functions concerning Avian Brands’
 Tanoko                                   operational activities and overseeing the Operations Division, including the Department of
                                          Procurement, Strategic Management System, and Sustainability.
 Kurnia Hadi         Director             Mr. Hadi is responsible for and has the duties and functions concerning the management of
 Sinanto                                  Avian Brands’ finances, accounting, taxes, and investor relations.
 Angelica Tanisia    Director             Mrs. Angel is responsible for and has the duties and functions for developing Avian Brands’
 Jozar                                    business in the Research, Development & Innovation sector.




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The Board of Directors Meeting

Meeting Policy
The Board of Directors implements its meeting policy in accordance with the provisions stipulated in POJK No. 33/2014
and Avian Brands’ Articles of Association. Under this policy, internal meetings must be convened at least once every month.
Meanwhile, joint meetings between the Board of Commissioners and the Board of Directors are scheduled to convene no fewer
than once every four months. These two types of meetings are essential to ensure that all decisions and steps taken, are aligned
with Avian Brands’ Vision, Mission and Values.

Meeting Convention
Throughout 2024, the Board of Directors has convened 12 internal meetings and 12 joint meetings with the Board of
Commissioners. Information regarding the number of meetings and meeting attendance by members of the Board of Directors
is as follows:

                                            Internal Meetings of                     Joint meetings with
                                                                                                                               GMS
                                           the Board of Directors                the Board of Commissioners
     Name           Position                                                                                                   2024
                                   Number of Number of      Attendance Number of Number of                 Attendance
                                                                                                                              Annual
                                    Meeting   Meeting           (%)     Meeting   Meeting                      (%)
                                                                                                                               GMS
                  President
 Wijono Tanoko                        12           12          100.00           12                9             75.00
                  Director
                  Vice President
 Ruslan Tanoko                        12           12          100.00           12               12            100.00
                  Director
 Robert Christian
                  Director            12           11            91.67          12               11             91.67
 Tanoko
 Kurnia Hadi
                  Director            12           11            91.67          12               12            100.00
 Sinanto
 Angelica
                  Director            12           11            91.67          12               11             91.67
 Tanisia Jozar



Competence Development of the Board of Directors

Policy on the Competence Development of the Board of Directors
Avian Brands has adopted a policy that regulates the implementation of the Board of Directors’ competence development
program in order to improve the quality of Avian Brands management. In accordance with the Board of Directors Charter,
members of the Board of Directors are required to consistently upgrade their knowledge and competence, concerning
the latest developments in economy, finance, related industries, regulations, and other matters related to Avian Brands.
This development program includes various activities, such as training and education programs, seminars, visits, benchmarking,
and brainstorming sessions.

Information related to the competence development programs participated by members of Avian Brands’ Board of Directors
throughout 2024 has been disclosed in the Company Profile Chapter, in particular the Profile section of each member of
the Board of Directors.



Orientation Program for New Members of the Board of Directors
Avian Brands has implemented a policy that regulates the orientation program for newly appointed members of
the Board of Directors. The program is designed to provide new members of the Board of Directors with a thorough
understanding of Avian Brands’ complete profile, including its unique characteristics, core values, and the business processes
that underpin its operations. By obtaining an in-depth understanding of Avian Brands’ dynamics in a short amount of time,
the new members of the Board of Directors can effectively take on their roles and responsibilities in supporting Avian Brands’
long-term vision and strategy. The orientation program for newly appointed Board of Directors includes, among others:
1. Knowledge of Avian Brands, among others:
   a. Avian Brands’ Vision, Mission, purposes, and objectives;           d. Avian Brands’ operational performance;
   b. Avian Brands’ strategy;                                            e. Avian Brands’ financial performance; and
   c. Avian Brands’ medium and long-term plans;                          f. Avian Brands’ risk management;


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2. Knowledge concerning the designation of the Board of Directors, among others:
   a. Duties, responsibilities, and authorities of the Board of Directors;
   b. Working time;
   c. Relationships with members of the Board of Commissioners; and
   d. Relevant rules/provisions.

Considering that the composition of Avian Brands’ Board of Directors in 2024 remains the same as the previous year, this year,
Avian Brands did not conduct any orientation programs for the new members of the Board of Directors.



Performance Assessment of the Board of Directors

                              Policy, Procedure, and Implementation of Performance Assessment
 Policy concerning performance assessment of the Board of Directors is based on the Performance Assessment Policy of
 the Board of Commissioners and the Board of Directors of Avian Brands which was stipulated on December 27, 2021, as well as other
 relevant regulations. With this policy, each member of the Board of Commissioners and the Board of Directors assesses the performance
 of the Board of Directors collegially, rather than individually. This assessment is designed to assess the effectiveness and cooperation
 of all members of the Board of Directors in carrying out Avian Brands management.
                                                                  Assessor
 The performance assessment of the Board of Directors is conducted periodically once a year by each member of
 the Board of Commissioners. In this regard, each member of the Board of Directors submits a collegial assessment of
 the Board of Directors to evaluate the implementation of duties and achievement of targets throughout the financial year.
 This assessment process takes into consideration the achievement of the agreed assessment aspects.
                                                 Aspects of Performance Assessment
 The Board of Directors’ performance assessment involves various essential aspects. These aspects are designed to present
 a comprehensive picture of the Board of Directors’ collegial contribution to achieving Avian Brands’ strategic objectives. The Board of
 Directors’ performance assessment aspects are described as follows:
 1. Leading, managing, and controlling Avian Brands in accordance with Avian Brands’ objectives;
 2. Making efforts to improve the efficiency and effectiveness of Avian Brands;
 3. Controlling, maintaining, and managing Avian Brands’ assets;
 4. Formulating an annual work plan that contains Avian Brands’ annual budget and submitting the plan to the Board of Commissioners for
    approval before the start of the next financial year;
 5. Performing their duties and responsibilities in accordance with the provisions of Avian Brands’ Articles of Association and the resolutions
    of the GMS;
 6. Conforming to Avian Brands’ Articles of Association as well as prevailing laws and regulations, and the obligations to perform duties in
    accordance with the principles of professionalism, efficiency, transparency, independence, accountability, responsibility, and fairness,
    including the convention of the Board of Directors Meetings in accordance with applicable regulations;
 7. Evaluating performance during the financial year, assessed based on the achievement of Avian Brands’ operational and financial targets;
 8. Measuring the Board of Directors’ competence in carrying out its duties and responsibilities, including knowledge and expertise relevant
    to Avian Brands’ industry; and
 9. Measuring level of attendance at Board of Directors meetings, both internal and joint meetings with the Board of Commissioners.
                                                  Results of Performance Assessment
 Based on the 2024 performance assessment procedures and criteria, the Board of Directors are assessed to have demonstrated proper
 performance of their duties and responsibilities. The Board of Directors is deemed to have successfully implemented business strategies
 that are aligned with the work plan and budget set by Avian Brands. This success reflects the Board of Directors’ commitment and
 competence in effectively managing Avian Brands’ resources and ensuring that all strategic initiatives are optimally executed to achieve
 Avian Brands’ objectives. This evaluation also confirms that the Board of Directors has played a key role in addressing business challenges
 and driving Avian Brands’ performance towards a better direction. In addition, throughout 2024, the Board of Directors has convened
 12 internal meetings and 12 joint meetings with the Board of Commissioners with topics in accordance with the 2024 work plan and
 matters of concern to the Board of Commissioners and the Board of Directors.




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Performance Assessment of Organs Under the Board of Directors

                            Policy, Procedure, and Implementation of Performance Assessment
The performance assessment policy of organs under the Board of Directors aims to ensure that each organ has carried out its duties
and responsibilities effectively and efficiently. This assessment also aims to identify areas that require improvement and development.
Results of the assessment are subsequently factored into the reappointment process of members of organs supporting the Board of
Directors, ensuring that only the most accomplished individuals may remain to support the Board of Directors in carrying out Avian
Brands management functions.
                                                              Assessor
Performance assessment of organs under the Board of Directors is conducted by the Board of Directors periodically at the end of each
financial year.
                                              Aspects of Performance Assessment
The performance assessment process for organs under the Board of Directors involves a careful evaluation of the assignment reports
and annual reports on the performance of each organ’s activities. The performance assessment aspects for organs under the Board of
Directors are described as follows:
1. Realization of the implementation of duties and responsibilities;
2. Competence possessed;
3. Meeting attendance; and
4. Recommendations provided.
                                               Results of Performance Assessment
The Related Party Transaction Based on the 2024 performance assessment procedures and criteria, the Related Party Transaction
Committee                     Committee has effectively supported the Board of Directors in providing constructive input and advice
                              on affiliated party transactions conducted by Avian Brands and its Subsidiaries. The Related Party
                              Transactions Committee is also assessed to have ensured that all affiliated party transactions are carried
                              out in accordance with customary business practices, comply with applicable laws and regulations,
                              and fulfill the arm’s length transaction principles. In addition, throughout 2024, the Related Party
                              Transactions Committee has convened 3 internal meetings with topics in accordance with the 2024
                              work plan and matters of concern to the Related Party Transactions Committee.
The Corporate Secretary          Based on the 2024 performance assessment procedures and criteria, the Corporate Secretary is assessed
                                 to have demonstrated good performance. The Corporate Secretary is assessed to have actively followed
                                 the latest developments in the capital market and ensured Avian Brands’ compliance with prevailing laws
                                 and regulations. In addition, the Corporate Secretary has also provided recommendations and inputs
                                 to the Board of Directors and the Board of Commissioners, thus ensuring that all policies and actions
                                 taken by Avian Brands are in accordance with existing regulations. The Corporate Secretary also plays an
                                 active role in attending and taking minutes at Board of Commissioners and Board of Directors meetings,
                                 both internal and joint meetings, as well as at the committee meetings.
The Internal Audit Unit          Based on the 2024 performance assessment procedures and criteria, the Internal Audit Unit is
                                 assessed to have demonstrated good performance. The Internal Audit Unit has successfully assisted
                                 the Board of Directors in implementing an internal control system, risk management, and GCG
                                 implementation in all aspects of Avian Brands’ business. The Internal Audit Unit has also demonstrated
                                 a strong commitment to ensuring that every process and operation runs in accordance with established
                                 standards, thereby increasing organizational effectiveness and efficiency. In addition, throughout 2024,
                                 the Internal Audit Unit has convened 12 meetings with the members of the Board of Directors,
                                 3 meetings with the Audit Committee, and 2 meetings with the Public Accounting Firm, with topics in
                                 accordance with the 2024 work plan and matters of concern to the Internal Audit Unit.




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The Board of Commissioners and
the Board of Directors Diversity Policy
Avian Brands has a policy concerning the diversity of the Board of Commissioners and the Board of Directors, as outlined in the
Board of Commissioners Charter and the Board of Directors Charter. Referring to the Charters, the composition of the incumbent
members of the Board of Commissioners and Board of Directors is required to have a fairly diverse composition, in terms of
age, educational background, expertise, and experience, which are needed to implement their duties and responsibilities.
This diversity commitment is not only to comply with applicable regulations, but is also part of Avian Brands’ strategy to enrich
the perspective and quality of decision-making at the upper management level.

Avian Brands recognizes that diversity at all levels, including upper management, is critical to promoting effectiveness
and innovation. By emphasizing equality, Avian Brands strives to create an inclusive work environment, where various
perspectives and backgrounds are allowed to provide maximum contribution. Therefore, the Board of Commissioners and
Board of Directors are able to view problems and opportunities from various perspectives which will in turn support
the performance and sustainability of Avian Brands. The diversity of composition of Avian Brands’ Board of Commissioners and
the Board of Directors as of December 31, 2024 is described as follows:

                                                                                                           Educational
         Name                    Position              Citizenship          Gender          Age
                                                                                                       Background and Skills
 Hermanto Tanoko           President Commissioner       Indonesian            Male      62 Years Old         Management
 Mohammad Noor                 Independent
                                                        Indonesian            Male      67 Years Old          Economy
 Rachman Soejoeti              Commissioner
 Wijono Tanoko               President Director         Indonesian            Male      72 Years Old     Sales and Marketing
 Ruslan Tanoko             Vice President Director      Indonesian            Male      49 Years Old     Chemical Engineering
 Robert Christian Tanoko          Director              Indonesian            Male      39 Years Old     Business and Trading
 Kurnia Hadi Sinanto              Director              Indonesian            Male      55 Years Old         Accounting
 Angelica Tanisia Jozar           Director              Indonesian           Female     43 Years Old         Engineering




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Nomination and Remuneration of the Board
of Commissioners and the Board of Directors
Nomination of the Board of Commissioners and the Board of Directors

Policy and Procedure of Nomination of the Board of Commissioners and the Board of Directors
The nomination policies and procedures for Avian Brands’ Board of Commissioners and Board of Directors, are meticulously
administered to ensure selection of suitable, competent candidates who are suited to Avian Brands’ needs and long-term
strategy. The nomination process begins with the identification of needs based on an analysis of the competence and expertise
required to fill the positions on the Board of Commissioners and the Board of Directors. This involves an in-depth evaluation of
the qualifications, experience and professional track record of potential candidates.

The nomination procedure is also assisted by the Nomination and Remuneration Committee, which is responsible for overseeing
and recommending the best candidates to the Board of Commissioners. The Nomination and Remuneration Committee
conducts preliminary selection by considering various factors, such as integrity, leadership, industry expertise, and ability to
advance the interests of Avian Brands and stakeholders. Further information on Avian Brands’ Board of Commissioners and
Board of Directors nomination procedure is described as follows:
1. The Nomination and Remuneration Committee (“Committee”) receives proposals from Shareholders/members of the
   Board of Commissioners/members of the Board of Directors regarding the nominations of the Board of Commissioners
   and/or the Board of Directors;
2. The Committee discusses the referred proposal in the Committee meeting. The discussion is stated in the minutes of the
   Committee meeting. During the meeting, several things are considered, including:
   a. Reasons and/or considerations for the proposal;
   b. Qualifications of the candidate in accordance with the relevant proposals; and
   c. Requirements in accordance with Avian Brands’ Articles of Association, the Board of Commissioners Charter, and/or
       the Board of Directors Charter;
3. After deliberation, the Committee provides recommendations to the Board of Commissioners. The recommendation is
   stated in the form of a Committee Decree;
4. Based on the recommendation from the Committee, the Board of Commissioners decides to nominate candidates for
   the Board of Commissioners and/or the Board of Directors to the chairman of the GMS. The resolution of the Board of
   Commissioners is stated in the form of the Board of Commissioners Decree; and
5. The chairman of the GMS determines the composition and/or changes in the members of the Board of Commissioners
   and/or the Board of Directors of Avian Brands. The resolution of the GMS is stated in the Minutes of the GMS.

Transparency and accountability are the guiding principles at every stage of the nomination process. Avian Brands strictly
upholds the principles of independence and objectivity in the selection process, ensuring that the selected candidates are the
most qualified and best suited to Avian Brands’ Vision and Mission. With these structured nomination policies and procedures,
Avian Brands is committed to building a competent and professional Board of Commissioners and Board of Directors with high
integrity, capable of leading Avian Brands toward long-term growth and sustainability.



Remuneration of the Board of Commissioners and the Board of Directors

Procedure and Basis of Remuneration Determination of the Board of Commissioners
and the Board of Directors
The procedure and basis for determining remuneration for Avian Brands’ Board of Commissioners and Board of Directors,
are carefully regulated to ensure fairness, transparency, and consistency with each member’s performance and responsibilities.
This procedure is subject to GMS resolution, which authority may be delegated to the Board of Commissioners by taking into
account the Nomination and Remuneration Committee’s opinion and recommendation. Points of consideration in determining
the remuneration amount for the Board of Commissioners and Board of Directors are described as follows:
1. The prevailing remuneration in the industry, in accordance with Avian Brands’ business activities and business scale
    in the industry;
2. Duties, responsibilities, and authorities of the Board of Commissioners and the Board of Directors in regard to the goals
    achievement and performance of Avian Brands;
3. Target and performance of each member of the Board of Commissioners and Board of Directors; and
4. The balance between fixed and variable benefits.

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Remuneration Structure and Amount
The remuneration structure received by Avian Brands’Board of Commissioners and the Board of Directors consists of:




            Allowances in the                           Other                               Salary                           Discretionary
             Form of Natura                          Allowances                                                                 Bonus




Information concerning the amount of remuneration received by Avian Brands’ Board of Commissioners and the Board of
Directors in 2024 is disclosed as follows:
                                                                                                                                     (in millions of Rupiah)

                                 Recipient                                                               Total Remuneration*
 The Board of Commissioners                                                                                        32,249
 The Board of Directors                                                                                            60,661
 Total                                                                                                             92,910

* Other than remuneration received by the Board of Commissioners and the Board of Directors of Avian Brands’ Subsidiaries.




Sharia Supervisory Board
Until the end of 2024, Avian Brands does not have a Sharia Supervisory Board under the consideration that the products and
services produced, the management system, fund management, and investment policies carried out by Avian Brands have not
fully implemented sharia principles.




Committees Under the Board
of Commissioners
The Board of Commissioners has 3 committees supporting its supervisory and advisory functions to the Board of Directors,
namely the Audit Committee, Nomination and Remuneration Committee, and Good Corporate Governance Committee.




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The Audit Committee

The Audit Committee is a supporting committee of the Board of Commissioners, established to support and strengthen
the supervisory and evaluation function of Avian Brands’ internal control system. The Audit Committee is also tasked with
ensuring that all internal control mechanisms run properly to prevent and detect potential irregularities and errors in
Avian Brands’ operations. Furthermore, the Audit Committee is responsible for assessing the quality of disclosure and accuracy
of financial reporting to ensure that the financial information presented by Avian Brands is accurate and reliable. In carrying
out its duties, the Audit Committee also closely reviews the scope, accuracy, independence, and objectivity of the appointed
public accountants to ensure they work free from pressure or influence from any party.

The Audit Committee Charter
Avian Brands has an Audit Committee Charter in place, which was stipulated on August 16, 2021 (“Audit Committee
Charter”). The Audit Committee Charter was formulated to ensure that the Audit Committee is able to perform its duties and
responsibilities efficiently, effectively, transparently and independently, accountably, and acceptable to all stakeholders.

Composition of the Audit Committee
The composition of Avian Brands’ Audit Committee is regulated in the Audit Committee Charter, under which the Audit
Committee must consist of at least 3 members, with an Independent Commissioner acting as Chairman and other members
from independent parties. One member of the Audit Committee shall have expertise and experience in accounting and/or
finance, while the other members shall have expertise in law or capital markets as well as a strong understanding of GCG.
All members of the Audit Committee must meet the competence and independence requirements as stipulated in
OJK Regulation No. 55/POJK.04/2015 concerning the Establishment and Working Guidelines of Audit Committees.

The appointment and dismissal of the Audit Committee members is carried out by the Board of Commissioners by virtue
of its decree. Members of the Audit Committee may be dismissed if they no longer meet the established performance standards
or are deemed incompetent in carrying out their duties. Dismissal may also occur if the Board of Commissioners determines
that such member no longer acts independently or has violated the applicable regulations. In 2024, the composition of the
Audit Committee consisted of 3 members, namely:

                                  Name                                                                       Position
 Mohammad Noor Rachman Soejoeti                                                               Chairman of the Audit Committee
 Sammy Tony Saul Lalamentik                                                                    Member of the Audit Committee
 Wardiman*                                                                                     Member of the Audit Committee

*) Term of office as Member of the Audit Committee commenced on September 17, 2024 replacing Mr. Fitradewata Teramihardja.


With this clear structure and mechanism in place, the Audit Committee is expected to effectively carry out its supervisory and
evaluation functions, to ensure the quality of financial disclosure and reporting, to review the scope, accuracy, independence,
and objectivity of the public accountant, and to monitor compliance with applicable laws and regulations.

Profile of the Audit Committee
The profile of each member of the Audit Committee is described as follows:


            MOHAMMAD NOOR RACHMAN SOEJOETI
            Chairman of the Audit Committee

            Term of Office and Basis of Appointment
            2021 – 2026: The Board of Commissioners Decree of Avian Brands No. 023/AA/DIR/VI/2021 dated August 16, 2021.


The complete profile of the Chairman of the Audit Committee can be found in the Profile of the Board of Commissioners
section of this Annual Report.




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      SAMMY TONY SAUL
      LALAMENTIK
      Member of the Audit Committee



      Indonesian, 62 years old.


         Term of Office and Basis of Appointment
         2021 – 2026:
         2021 – 2026: The Board of Commissioners Decree of Avian Brands No. 023/AA/DIR/VI/2021 dated August 16, 2021.
         Educational Background
         Diploma III in Accounting from Sekolah Tinggi Akuntansi Negara (“STAN”), Tangerang in 1984.
         Certifications
         Financial Services Sector Supervisory Certification (Sektor Jasa Keuangan or “SJK”) Level 2.
         Work Experiences
         • Examiner of Inspectorate General of the Ministry of Finance (1984 - 1989);
         • Executing officer of the Bureau of Brokerage Development for the Capital Market Implementing Agencies
           (1989 - 1991);
         • Head of Sub Division of Bureau of Corporate Financial Assessment I - Capital Market Implementing Agencies
           Services Sector (1991 - 2000);
         • Head of Sub Division of Bureau of Accounting Standards and Disclosure of Capital Market Supervisory
           Agencies (2000 - 2006);
         • Head of Sub Division of Bureau of Real Sector Company Valuation of Capital Market and Financial Institutions
           Supervisory Agencies (2006 - 2012);
         • Head of Sub Division of the Directorate of Real Sector Company Valuation of Financial Services Authority –
           Capital Market Sector Supervision (2013 - 2014);
         • Head of Sub Division of the Directorate of Capital Market Supporting Institutions and Professionals of Financial
           Services Authority - PM2B Department (2014 - 2020); and
         • Ad interim Head of Accountant Compliance – DLPM of Financial Services Authority – PM2B Department
           (2016 - 2018).
         Dual Appointments
         • Commissioner of PT Kredit Rating Indonesia (2020 - present);
         • Independent Commissioner of PT Super Energy Tbk (2020 - present);
         • Independent Commissioner and Chairman of the Audit Committee of PT Perdana Karya Perkasa Tbk
           (2021 - present);
         • Member of the Audit Committee of PT Nusantara Sejahtera Raya Tbk (2023 – present);
         • Independent Commissioner of PT Surya Fajar Urun Dana (2024 – present);
         • Independent Commissioner of PT OSO Sekuritas Indonesia (2024 – present); and
         • Independent Commissioner of PT Arsy Buana Travelindo Tbk (2024 – present).
         Education/Training in 2024
         -
         Affiliation
         Is not an affiliate of members of the Board of Commissioners, members of the Board of Directors, as well as Main and
         Controlling Shareholders.



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      WARDIMAN*

      Member of the Audit Committee



      Indonesian, 52 years old.


            Term of Office and Basis of Appointment
            2024 – 2026:
            Minutes of the Meeting of the Board of Commissioners of Avian Brands No. 004/AA/BAR/KOM/IX/2024 dated
            September 17, 2024.
            Educational Background
            • Diploma III in Accounting from Polytechnic of Sriwijaya University, Palembang in 1994; and
            • Bachelor of Economics majoring in Accounting from the University of Indonesia Extension Program, Depok in 1998.
            Certifications
            • Chartered Accountant (“CA”) certification; and
            • Level B Tax Consultant Practicing License.
            Work Experiences
            • Accounting Staff of PT Eka Sinar Abadi (1995 – 1997);
            • Accounts Payable Supervisor of PT Carti Satria Megaswalayan (Carrefour) (1998 – 1999);
            • Senior Auditor of KAP Hans Tuanakkota & Mustofa (Deloitte Touche) (1999 – 2001);
            • Accounting Manager of Ristia Group (2001 – 2003);
            • Manager of Internal Control and Corporate Finance of Yuwono Group (2003 – 2006);
            • Financial Controller of Vision Group (2006 – 2013); and
            • Senior Manager of PT Mitra Konsultan (2014 – 2019).
            Dual Appointments
            • Director of Finzone Group (2019 – present);
            • Member of Audit Committee of PT Victoria Care Indonesia Tbk (2020 - present);
            • Member of Audit Committee of PT Superior Prima Sukses Tbk Tbk (2024 - present); and
            • Member of Related Party Transaction Committee of Avian Brands (2024 - present).
            Education/Training in 2024
            • In-depth Discussion on the Policy and Technicalities of Filing Annual Corporate Income Tax Returns, by the
              Indonesian Institute of Accountants (Ikatan Akuntan Indonesia or “IAI”);
            • Taxation Aspects in Insolvency and Suspension of Debt Payment Obligations, by the Indonesian Tax Consultants
              Association (Ikatan Konsultan Pajak Indonesia or “IKPI”);
            • Beyond Core Tax System: IT-based Monitoring and Services, by IKPI;
            • Implementation of Tax Management and Creative Accounting, by IAI;
            • Latest Regulatory Updates on Taxation Aspects in Investment, by IKPI;
            • Understanding Taxation Aspects in Business, Investment, and Operational Cooperation, by IAI; and
            • In-depth Discussion on Drafting Tax Consultant Service Contract with Client and Legal Protection of Tax
              Consultant, by IKPI.
            Affiliation
            Is not an affiliate of members of the Board of Commissioners, members of the Board of Directors, as well as Main and
            Controlling Shareholders.

*) Term of office as Member of the Audit Committee commenced on September 17, 2024 replacing Mr. Fitradewata Teramihardja.


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Duties and Responsibilities of the Audit Committee
The duties and responsibilities of the Audit Committee are based on the Audit Committee Charter as well as other relevant
regulations, which stipulate its crucial role in ensuring effective supervision of Avian Brands’ internal control system.
The Audit Committee is responsible for evaluating and monitoring the implementation of internal controls, assessing the
quality of financial reporting, and ensuring that all accounting and auditing practices comply with applicable standards.
The Audit Committee also reviews the scope and independence of the public accountants carrying out the audit, as well as
oversees compliance with relevant laws and regulations. Further information on the duties and responsibilities of the Audit
Committee based on the Audit Committee Charter and other relevant regulations, is described as follows:
1. Reviewing the financial information to be issued by               of errors in the resolutions of the Board of Directors
   Avian Brands to the public and/or authorities, including          meeting or deviations in the implementation of the
   financial statements, projections, and other reports              resolutions of the Board of Directors meeting;
   related to Avian Brands’ financial information;               9. Conducting inspections, either by the Audit Committee
2. Reviewing compliance with internal regulations as                 itself or by assigning third parties, if necessary;
   well as laws and regulations related to Avian Brands’         10. Reviewing and providing advice to the Board of
   activities, and submitting the reviews to the Board of            Commissioners regarding potential conflicts of interest
   Commissioners;                                                    in Avian Brands;
3. Providing independent opinions in the event of differing      11. Assisting the Board of Commissioners in carrying out
   opinions between the management and the accountant                active supervision on the compliance function by:
   on the services provided;                                         a. evaluating the implementation of Avian Brands’
4. Providing recommendations to the Board of                             compliance function with internal regulations as
   Commissioners regarding the appointment of a                          well as laws and regulations relating to Avian Brands’
   Public Accountant based on independence, scope of                     activities at least twice in a year; and
   assignment, and remuneration for services;                        b. providing suggestions to improve the quality of
5. Discussing audit plans including the nature and scope of              Avian Brands’ compliance function;
   the audit;                                                    12. Providing recommendations to the Board of
6. Reviewing the adequacy of the audit by considering all            Commissioners regarding the appointment, dismissal,
   significant risks;                                                and performance assessment of the Chairman of the
7. Reviewing the planning, implementation, and                       Internal Audit Unit;
   supervising the execution of follow-ups by the Board of       13. Maintaining the confidentiality of Avian Brands’
   Directors on the findings of both internal and external           documents, data, and information;
   auditors;                                                     14. Reviewing the implementation of risk management
8. Reviewing and reporting, to the Board of Commissioners,           performed by the Board of Directors; and
   complaints related to Avian Brands’ accounting and            15. Providing recommendations on the dismissal of external
   financial reporting processes, including allegations              auditors.



Statement of Independence of the Audit Committee
Each Audit Committee member consistently upholds the principles of independence and prudence in carrying out their duties
and responsibilities. Commitment to independence is reflected in the membership structure of the Audit Committee, in which
the Chairman of the Audit Committee is an Independent Commissioner. Moreover, the other 2 members are independent
external parties, ensuring that all Audit Committee activities are conducted free of conflicts of interest and with high objectivity.
Each member of the Audit Committee has satisfied the independence requirements in accordance with the regulations and
rules of GCG practice, namely that the members of the Audit Committee:
1. Are not parties who work or have the authority and                3. Have no affiliation with the Board of Commissioners, the
    responsibility to plan, lead, control, or supervise Avian           Board of Directors, or Main and Controlling Shareholders
    Brands’ activities within the last 6 months;                        of Avian Brands; and
2. Do not hold Avian Brands’ shares either directly or               4. Have no business relationship, either directly or
    indirectly in Avian Brands;                                         indirectly, related to Avian Brands’ business activities.


The Audit Committee Meeting

Meeting Policy
Policy regarding the convening of Audit Committee meetings is stipulated in the Audit Committee Charter, under which
meetings must be convened at least once every 3 months. For a meeting to be deemed valid, it must be attended by at
least 51% of the total members, including the attendance of at least one Independent Commissioner. This ensures that each
Audit Committee meeting is conducted with adequate participation and representation to ensure effective and accountable
decision-making.


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Meeting Convention
Throughout 2024, the Audit Committee has convened 5 meetings. Information regarding the number of meetings and meeting
attendance by members of the Audit Committee is as follows:

            Name                              Position                  Number of Meeting            Total Attendance         Attendance (%)
 Mohammad Noor                   Chairman of the Audit
                                                                                    5                           5                   100.00
 Rachman Soejoeti                Committee
 Sammy Tony Saul
                                 Member of the Audit Committee                      5                           5                   100.00
 Lalamentik
 Wardiman*                       Member of the Audit Committee                      5                           2                    40.00

*) Term of office as Member of the Audit Committee commenced on September 17, 2024 replacing Mr. Fitradewata Teramihardja.


Competence Development of the Audit Committee
Avian Brands is consistently committed to improving the knowledge and competence of Audit Committee members
through continuous development programs. Each year, Audit Committee members participate in various training and
development programs designed to upgrade their knowledge and improve their ability to effectively carry out their duties and
responsibilities. This ensures that the Audit Committee remains alert to challenges and changes in the business and regulatory
environment. Information related to competence development programs attended by Audit Committee members throughout
2024 has been disclosed in the profile section of each Audit Committee member.



Performance of the Audit Committee’s Duties
The Audit Committee carries out its duties and responsibilities with utmost dedication and prudence in accordance with
applicable regulations and guidelines. Information regarding the performance of the Audit Committee’s duties carried out
throughout 2024, is described as follows:
1. Discussing the year-end audit results of the Consolidated Financial Statements of Avian Brands and its Subsidiaries for
    the financial year ended December 31, 2023, by the Independent Auditor, KAP Tanudiredja, Wibisana, Rintis & Rekan
    (a member firm of the global PwC network);
2. Reviewing the Consolidated Financial Statements of Avian Brands and its Subsidiaries for the March 31, 2024,
    June 30, 2024, and September 30, 2024 period;
3. Evaluating the implementation of the provision of audit services on annual historical financial information by Public
    Accountant and/or Public Accounting Firm for the 2023 financial year;
4. Providing recommendations for the appointment of a Public Accounting Firm that will audit the Financial Statements for
    the 2024 financial year;
5. Reviewing the independence and objectivity of the Public Accounting Firm in conducting the audit for the 2024 financial
    year;
6. Reviewing the implementation of the Internal Audit Unit’s work program and providing input to improve the efficiency and
    effectiveness of the Internal Audit Unit;
7. Reviewing audit findings, both from internal and external auditors, and monitoring follow-up actions on audit findings;
    and
8. Reviewing the effectiveness of the internal control system and providing input to encourage the creation of an effective
    internal control system.



The Nomination and Remuneration Committee

The Nomination and Remuneration Committee is a supporting committee of the Board of Commissioners established to
ensure that Avian Brands’ nomination and remuneration process complies with the prevailing laws and regulations. It also
assists the implementation of supervisory functions to ensure objective, effective and efficient nomination and remuneration.
Further, the Nomination and Remuneration Committee focuses on improving the quality, competence, and responsibilities of
the Board of Commissioners and Board of Directors, allowing them to perform their duties optimally, in line with Avian Brands’
Vision and Mission. By having a Nomination and Remuneration Committee, Avian Brands is expected to achieve its strategic
objectives through transparent and accountable management, and to ensure that each decision concerning nomination and
remuneration contributes significantly to business growth and sustainability.




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The Nomination and Remuneration Committee Charter
Avian Brands has a Nomination and Remuneration Committee Charter in place, which was stipulated on August 16, 2021
(“Nomination and Remuneration Committee Charter”). The Nomination and Remuneration Committee Charter was formulated
to ensure that the Nomination and Remuneration Committee is able to perform its duties and responsibilities efficiently,
effectively, transparently and independently, accountably, and acceptable by all stakeholders.

The Composition of Nomination and Remuneration Committee
The composition of Avian Brands’ Nomination and Remuneration Committee is regulated in the Nomination and Remuneration
Charter, under which the Nomination and Remuneration Committee must consist of at least 3 members, with an Independent
Commissioner acting as Chairman. The appointment and dismissal of the Nomination and Remuneration Committee members
is carried out by the Board of Commissioners by virtue of its decree. Dismissal process of Nomination and Remuneration
Committee members is also clearly regulated, in which members may be dismissed upon expiration of their term of office
or if, as assessed by the Board of Commissioners, such members fail to meet predetermined performance standards or are
deemed incompetent in carrying out their duties. These arrangements are designed to ensure that the committee operates
with a high level of efficiency and effectiveness, and is capable of performing its supervisory function over the nomination
and remuneration process with a high degree of objectivity. In 2024, the composition of the Nomination and Remuneration
Committee consisted of 3 members, namely:

                           Name                                                         Position
 Mohammad Noor Rachman Soejoeti                                 Chairman of the Nomination and Remuneration Committee
 Hermanto Tanoko                                                 Member of the Nomination and Remuneration Committee
 Iwan Sigit                                                      Member of the Nomination and Remuneration Committee



Profile of the Nomination and Remuneration Committee
The profile of each member of the Nomination and Remuneration Committee is described as follows:



          MOHAMMAD NOOR RACHMAN SOEJOETI
          Chairman of the Nomination and Remuneration Committee

          Term of Office and Basis of Appointment
          2021 – 2026: The Board of Commissioners Decree of Avian Brands No. 023/AA/DIR/VI/2021 dated August 16, 2021.


The complete profile of the Chairman of the Nomination and Remuneration Committee can be found in the Profile of
the Board of Commissioners section of this Annual Report.



          HERMANTO TANOKO
          Member of the Nomination and Remuneration Committee

          Term of Office and Basis of Appointment
          2021 – 2026: The Board of Commissioners Decree of Avian Brands No. 023/AA/DIR/VI/2021 dated August 16, 2021.


The complete profile of the Member of the Nomination and Remuneration Committee can be found in the Profile of
the Board of Commissioners section of this Annual Report.




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     IWAN SIGIT
     Member of the Nomination and
     Remuneration Committee



     Indonesian, 52 years old.


          Term of Office and Basis of Appointment
          2021 – 2026:
          The Board of Commissioners Decree of Avian Brands No. 033/AA/DIR/VIII/2021 dated August 31, 2021.

          Educational Background
          Bachelor of Industrial Statistics from Brawijaya University, Malang in 1997.

          Certifications
          -

          Work Experiences
          Operational General Manager of Avian Brands (2017 – 2021).

          Dual Appointments
          • Vice Director of Operations of Avian Brands (2021 - present); and
          • Member of the Good Corporate Governance Committee of Avian Brands (2022 – present).

          Education/Training in 2024
          • Strategies for Achieving the Sustainable Development Goal Pillars by Paragon;
          • Factory Visit by PT Theris Fire Protection;
          • Socialization of INDI 4.0 Assistance by Avian Brands; and
          • Safety Tank by PT BASF Indonesia.

          Affiliation
          Is not an affiliate of members of the Board of Commissioners, members of the Board of Directors, as well as Main and
          Controlling Shareholders.

Duties and Responsibilities of the Nomination and Remuneration Committee
The duties and responsibilities of the Nomination and Remuneration Committee are based on the Nomination and
Remuneration Committee Charter, which sets forth its critical role to support the Board of Commissioners in various aspects
related to nomination and remuneration. One of the primary duties of the Nomination and Remuneration Committee is to
ensure an objective and transparent nomination process for members of the Board of Commissioners and Board of Directors,
taking into account the predetermined criteria to ensure that the selected candidates possess high competence and integrity.
The Nomination and Remuneration Committee is also responsible for formulating fair and competitive remuneration policies,
both for the Board of Commissioners and the Board of Directors, to ensure that the remuneration structure can stimulate optimal




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performance and is aligned with Avian Brands’ strategic objectives. Further information on the duties and responsibilities of
the Nomination and Remuneration Committee based on the Nomination and Remuneration Committee Charter, is described
as follows:
1. Providing recommendations to the Board of Commissioners concerning policy, amount, and structure of the remuneration
    for the Board of Commissioners and the Board of Directors which will be a part of the Board of Commissioners’ Report to be
    submitted to and then stipulated in the GMS;
2. Assisting the Board of Commissioners in performance assessment in relation to the suitability of remuneration received by
    each member of the Board of Commissioners and the Board of Directors;
3. Providing recommendations to the Board of Commissioners regarding:
    a. designation composition of the Board of Commissioners and the Board of Directors;
    b. policy and criteria required in the nomination process of members of the Board of Commissioners and the Board of
         Directors; and
    c. policy on performance assessment for members of the Board of Commissioners and the Board of Directors;
4. Assisting the Board of Commissioners in assessing the performance of members of the Board of Commissioners and the
    Board of Directors based on the benchmarks that have been stipulated as assessment considerations;
5. Providing recommendations to the Board of Commissioners regarding competence development programs for members
    of the Board of Commissioners and the Board of Directors;
6. Providing proposals of qualified candidates as members of the Board of Commissioners and/or members of the Board of
    Directors to the Board of Commissioners to be submitted to the GMS;
7. Performing tasks, other than the aforementioned, given by the Board of Commissioners in accordance with their functions
    and duties from time to time as necessary; and
8. In carrying out its duties, the Nomination and Remuneration Committee is responsible to the Board of Commissioners and
    must act independently.

Statement of Independence of the Nomination and Remuneration Committee
The Nomination and Remuneration Committee consistently upholds the principle of independence in carrying out its duties
and responsibilities. This independence is reflected in the Nomination and Remuneration Committee structure, in which the
Chairman is an Independent Commissioner with no affiliation with other members of the Board of Commissioners or the
Board of Directors. This ensures that evaluations and recommendations are made objectively and without influence from any
personal or group interests. The Nomination and Remuneration Committee is committed to conducting the entire nomination
and remuneration process transparently, fairly and in accordance with the GCG principles. This aims to maintain integrity and
trust in the supervisory and decision-making processes carried out by the Board of Commissioners and the Board of Directors,
and to ensure that all policies are implemented in line with the best interests of Avian Brands and its stakeholders.

The Nomination and Remuneration Committee Meeting

Meeting Policy
Policy regarding the convening of Nomination and Remuneration Committee meetings is stipulated in the Nomination and
Remuneration Committee Charter, under which meetings must be convened regularly with a minimum frequency of 1 time in
4 months. To ensure the validity and effectiveness of meetings, the attendance of a majority of Nomination and Remuneration
Committee members is required. This provision is formulated to ensure that each resolution adopted at the meeting is well-
founded and supported by the opinions of the majority of members, thus improving the quality of supervision and decision-
making process regarding nomination and remuneration.

Meeting Convention
Throughout 2024, the Nomination and Remuneration Committee has convened 3 meetings. Information regarding the number
of meetings and meeting attendance by members of the Nomination and Remuneration Committee is described as follows:

              Name                    Position             Number of Meeting       Total Attendance       Attendance (%)
 Mohammad Noor             Chairman of the Nomination
                                                                     3                      3                  100.00
 Rachman Soejoeti          and Remuneration Committee
                           Member of the Nomination and
 Hermanto Tanoko                                                     3                      3                  100.00
                           Remuneration Committee
                           Member of the Nomination and
 Iwan Sigit                                                          3                      3                  100.00
                           Remuneration Committee




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Competence Development of the Nomination and Remuneration Committee
Avian Brands is consistently committed to improving the knowledge and competence of Nomination and Remuneration
Committee members through continuous development programs. Each year, Nomination and Remuneration Committee
members participate in various training and development programs designed to upgrade their knowledge and improve their
ability to effectively carry out their duties and responsibilities. This ensures that the Nomination and Remuneration Committee
remains alert to challenges and changes in the business and regulatory environment.

Information related to competence development programs attended by Nomination and Remuneration Committee members
throughout 2024 has been disclosed in the profile section of each Nomination and Remuneration Committee member.

Performance of the Nomination and Remuneration Committee’s Duties
Performance of the duties of the Nomination and Remuneration Committee is carried out with a focus on improving the
effectiveness and objectivity of supervisory functions over the nomination and remuneration process. Such duties are carried
out at all times with utmost dedication and prudence, in accordance with applicable regulations and guidelines. Information
regarding the performance of the Nomination and Remuneration Committee’s duties carried out throughout 2024 is described
as follows:
1. Reviewing the remuneration of the members of Avian Brands’ Board of Commissioners and Board of Directors for 2024;
2. Discussing the review of self-assessment results by each Board of Commissioners member regarding the collective
    performance of the Board of Commissioners and the Board of Directors for the 2023 financial year;
3. Assisting the Board of Commissioners in performance assessment of the Board of Commissioners and the Board of Directors
    for 2024;
4. Provide recommendations to the Board of Commissioners on competence development programs for members of the
    Board of Commissioners and the Board of Directorsand
5. Performing other duties assigned by Avian Brands’ Board of Commissioners.


The Good Corporate Governance Committee
The Good Corporate Governance Committee is a supporting committee of the Board of Commissioners established to ensure
that Avian Brands’ Business Ethics and Code of Conduct have been implemented in every aspect of Avian Brands’ operations.
The Good Corporate Governance Committee also has the duties and responsibilities to receive and follow up reports of any
complaints of violations of Business Ethics and Code of Conduct committed by Avian Brands’ personnel. Accordingly, the
Good Corporate Governance Committee ensures that any violations are dealt with seriously, in accordance with established
procedures to maintain integrity and ethics in conducting business. The Good Corporate Governance Committee also plays
a role in overseeing implementation of Environmental, Social, and Governance (“ESG”) aspects, to ensure alignment with
Avian Brands’ sustainability principles. The Good Corporate Governance Committee is instrumental in supporting the Board
of Commissioners to maintain transparency, accountability and high standards of ethics in every aspect of Avian Brands
management, which in turn contributes to the achievement of Avian Brands’ Vision and Mission.

The Good Corporate Governance Committee Charter
In performing its duties and responsibilities, the Good Corporate Governance Committee is guided by Avian Brands’ Business
Ethics and Code of Conduct which have been stipulated on June 25, 2021, as last amended on March 24, 2022.

Composition of the Good Corporate Governance Committee
The Good Corporate Governance Committee consists of members appointed for a 3-year term of office, with members’
appointment and dismissal based on resolution of the Board of Commissioners. The Good Corporate Governance Committee
is chaired by the Operational Director, with permanent members comprising the Financial Director and Deputy Operational
Director. In addition to the permanent members, the Good Corporate Governance Committee also comprises Ad Hoc
members, i.e., division leaders in Avian Brands’ organization. Having these Ad Hoc members ensures that the committee
includes representatives from various divisions within Avian Brands, which assists in addressing specific issues and carrying
out specific tasks relating to governance. In 2024, the composition of the Good Corporate Governance Committee consisted
of 3 members, namely:

                            Name                                                           Position
 Robert Christian Tanoko                                                 Chairman of the Good Corporate Governance
 Kurnia Hadi Sinanto                                                     Member of the Good Corporate Governance
 Iwan Sigit                                                              Member of the Good Corporate Governance


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Profile of the Good Corporate Governance Committee
The profile of each member of the Good Corporate Governance Committee is described as follows:


         ROBERT CHRISTIAN TANOKO
         Chairman of the Good Corporate Governance

         Term of Office and Basis of Appointment
         2023 – 2026: Minutes of Meeting of the Board of Commissioners of Avian Brands No. 004/AA/BAR/KOM/VIII/2023 dated
         August 16, 2023.

The complete profile of the Chairman of the Good Corporate Governance Committee can be found in the Profile of the Board
of Directors section of this Annual Report.


         KURNIA HADI SINANTO
         Member of the Good Corporate Governance

         Term of Office and Basis of Appointment
         2023 – 2026: Minutes of Meeting of the Board of Commissioners of Avian Brands No. 004/AA/BAR/KOM/VIII/2023
         dated August 16, 2023.

The complete profile of the Member of the Good Corporate Governance Committee can be found in the Profile of the Board of
Directors section of this Annual Report.

         IWAN SIGIT
         Member of the Good Corporate Governance

         Term of Office and Basis of Appointment
         2023 – 2026: Minutes of Meeting of the Board of Commissioners of Avian Brands No. 004/AA/BAR/KOM/VIII/2023
         dated August 16, 2023

The complete profile of the Member of the Good Corporate Governance Committee can be found in the Profile of Member
of the Nomination and Remuneration Committee section in this Annual Report.



Duties and Responsibilities of the Good Corporate Governance Committee
The duties and responsibilities of the Good Corporate Governance Committee are based on the Business Ethics and Code of
Conduct as well as other relevant regulations that stipulate various essential aspects to ensure good and sustainable corporate
governance. One of the primary duties of the Good Corporate Governance Committee is to assist the Board of Commissioners
in carrying out its supervisory function over the enforcement of Avian Brands’ Business Ethics and Code of Conduct.
The Good Corporate Governance Committee is also responsible for receiving and following up on reports of any complaints
of violations of Business Ethics and Code of Conduct committed by Avian Brands’ personnel. Further information on the duties
and responsibilities of the Good Corporate Governance Committee, based on the Business Ethics and Code of Conduct and
other relevant regulations, is described as follows:
1. Conducting socialization activities to enforce Avian Brands’ Business Ethics and Code of Conduct to all Avian Brands’
    Personnel as a form of prevention of violations of Avian Brands’ Business Ethics and Code of Conduct;
2. Receiving questions that arise from Avian Brands’ Personnel regarding the contents of Avian Brands’ Business Ethics and
    Code of Conduct;
3. Receiving reports of any complaints against violations of Avian Brands’ Business Ethics and Code of Conduct by Avian
    Brands’ Personnel;
4. Following up on any reports of violations of Avian Brands’Business Ethics and Code of Conduct;
5. Providing recommendations on resolutions of violations of Avian Brands’ Business Ethics and Code of Conduct to the Board
    of Directors, including sanctions that will be imposed; and
6. Supervising the implementation of Environmental, Social, and Governance (“ESG”) aspects in Avian Brands’ operations,
    including ensuring compliance with sustainability principles, supporting social and environmental initiatives,
    and promoting good governance to increase value for stakeholders.



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Statement of Independence of the Good Corporate Governance Committee
The Good Corporate Governance Committee consistently upholds the principle of independence in carrying out its duties
and responsibilities. This is reflected in its membership composition which includes the Operations Director as chairman,
as well as permanent members consisting of the Finance Director and Deputy Operations Director, along with Ad Hoc members
consisting of division leaders within Avian Brands’ organization. The Good Corporate Governance Committee’s independence
ensures that each decision and recommendation is free from external influence or pressure, in order to prioritize Avian Brands’
best interests. The Good Corporate Governance Committee is also committed to complying with all applicable regulations and
governance standards as well as maintaining integrity in every aspect of Avian Brands’ operations.

The Good Corporate Governance Committee Meeting
Meeting Policy
Policy on convening Good Corporate Governance Committee meetings stipulates that meetings are convened periodically as
necessary, to ensure the enforcement of the Business Ethics and Code of Conduct. Meeting discussions also include an update
on Avian Brands’ ESG data for each quarter. The frequency of meetings is determined based on the urgency and complexity of
emerging issues related to compliance and corporate governance.

Meeting Convention
Throughout 2024, the Good Corporate Governance Committee has convened 4 meetings. Information regarding the number
of meetings and meeting attendance by members of the Good Corporate Governance Committee is described as follows:

                                                                  Number of
              Name                     Position                                      Total Attendance          Attendance (%)
                                                                   Meeting
                            Chairman of the Good Corporate
 Robert Christian Tanoko                                               4                       4                     100.00
                            Governance
                            Member Good Corporate
 Kurnia Hadi Sinanto                                                   4                       4                     100.00
                            Governance
                            Member Good Corporate
 Iwan Sigit                                                            4                       4                     100.00
                            Governance


Competence Development of the Good Corporate Governance Committee
Avian Brands is consistently committed to improving the knowledge and competence of Good Corporate Governance
Committee members through continuous development programs. Each year, Good Corporate Governance Committee
members participate in various training and development programs designed to upgrade their knowledge and improve their
ability to effectively carry out their duties and responsibilities. This ensures that the Good Corporate Governance Committee
remains alert to challenges and changes in the business and regulatory environment.



Information related to competence development programs attended by Good Corporate Governance Committee members
throughout 2024 has been disclosed in the profile section of each Good Corporate Governance Committee member.

Implementation of Duties of the Good Corporate Governance Committee
Implementation of the Good Corporate Governance Committee’s duties involves various aspects critical to ensure compliance
with the Business Ethics and Code of Conduct at all levels of the organization. The Good Corporate Governance Committee
receives and follows up on any reports or complaints related to ethical violations, conducts in-depth investigations,
and provides recommendations for settlement. Furthermore, the Good Corporate Governance Committee also prepares
periodic reports to the Board of Commissioners to deliver strategic inputs concerning continuous improvements that
Avian Brands needs to implement. Further information regarding the implementation of the Good Corporate Governance
Committee’s duties carried out throughout 2024, is described as follows:
1. Ensuring that every complaint of violation of Business Ethics and Code of Conduct received, is followed up with a thorough
    investigation process based on the established facts, while ensuring full confidentiality protection of the whistleblower’s
    identity to prevent possible retaliation or invasion of privacy;
2. Discussing summary of ESG data of Avian Brands and its Subsidiaries, for the period ended December 31, 2023,
    March 31, 2024, June 30, 2024, and September 30, 2024 in relation to Avian Brands’ commitment to responsible business
    conducts of sustainability;
3. Discussing results of assessment by EcoVadis, an international certification body, on Avian Brands’ sustainability performance
    across environmental, labor and human rights, ethics, and procurement practices; and
4. Discussing the awards received by Avian Brands, namely ESG Award 2024 in the category of Best Issuer in the capital market
    sector, organized by Yayasan Keanekaragaman Hayati Indonesia (“KEHATI”), ESG Award 2024 from Katadata, and Annual
    Report Award 2023 from KNKG.
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Committees Under the Board of Directors
The Board of Directors has 1 supporting committee to assist in the implementation of Avian Brands management duties,
namely the Related Party Transaction Committee



The Related Party Transaction Committee

The Related Party Transaction Committee is a supporting committee of the Board of Directors established to assist the Board
of Directors in ensuring that any affiliated party transactions conducted by Avian Brands complies with generally accepted
business practices and prevailing laws and regulations. The Related Party Transaction Committee actively assesses and
supervises any affiliated party transactions, to ensure that they not only meet the standards of fairness and transparency,
but also adhere to the principles that ensure the interests of Avian Brands and its stakeholders. By upholding these principles,
the Related Party Transaction Committee promotes the creation of an ethical and accountable business environment,
while reducing risks that may arise from transactions that are inconsistent with applicable policies or regulations.

The Related Party Transaction Committee Charter
In performing its duties and responsibilities, the Related Party Transaction Committee is guided by the Financial Services
Authority Regulation No. 42/POJK.04/2020 concerning Affiliated Transactions and Conflict of Interest Transactions and the
Affiliated Transaction Guidelines established by Avian Brands on November 16, 2022.

Composition of the Related Party Transaction Committee
The composition of the Related Party Transaction Committee consists of 3 members, with 1 Chairman and 2 Members.
Appointment and dismissal of Related Party Transaction Committee Members is carried out directly by the Board of
Directors, acting as the main authority in determining the continuity of the Related Party Transaction Committee. Resolution
to dismiss a member may be taken upon expiry of his term of office or if the member does not meet the predetermined
performance standards. The Board of Directors ensures that each committee member possesses the necessary competence
and demonstrates satisfactory performance in carrying out their duties and responsibilities. In 2024, the composition of the
Related Party Transaction Committee consisted of 3 members, namely:

                                  Name                                                                        Position
 Kurnia Hadi Sinanto                                                               Chairman of the Related Party Transaction Committee
 Wardiman*                                                                          Member of the Related Party Transaction Committee
 Bobby Septian Yahya                                                                Member of the Related Party Transaction Committee

*) Term of office as Member of the Related Party Transaction Committee commenced on September 17, 2024 replacing Mr. Fitradewata Teramihardja.


Profile of the Related Party Transaction Committee
The profile of each member of the Related Party Transaction Committee is described as follows:



            KURNIA HADI SINANTO
            Chairman of the Related Party Transaction Committee

            Term of Office and Basis of Appointment
            2022 – 2025: The Board of Directors Decree of Avian Brands No. 008/AA/SK/DIR/V/2022 dated May 19, 2022.


The complete profile of the Chairman of the Related Party Transaction Committee can be found in the Profile of the Board of
Directors section of this Annual Report.




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            WARDIMAN*
            Member of the Related Party Transaction Committee

            Term of Office and Basis of Appointment
            2024 – 2025: Minutes of Meeting of the Board of Directors of Avian Brands No. 009/AA/BAR/DIR/IX/2024 dated
            September 17, 2024.

The complete profile of the Member of the Related Party Transaction Committee can be found in the Profile of the Audit Committee
section of this Annual Report.
*) Term of office as Member of the Related Party Transaction Committee commenced on September 17, 2024 replacing Mr. Fitradewata Teramihardja.




      BOBBY SEPTIAN
      YAHYA
      Member of the Related Party Transaction Committee



      Indonesian, 32 years old.


            Term of Office and Basis of Appointment
            2023 – 2025:
            The Board of Directors Decree of Avian Brands No. 008/AA/SK/DIR/VI/2022 dated June 14, 2023.
            Educational Background
            Bachelor of Accounting from Bina Nusantara University, Jakarta in 2014.
            Certifications
            • Practical Implementation of Operational Audit from Yayasan Pendidikan Internal Audit; and
            • Risk Based Internal Audit from Yayasan Pendidikan Internal Audit.
            Work Experiences
            • Internal Audit of PT Combiphar (2015 – 2018);
            • Internal Audit Senior of PT Sayap Mas Utama (Wings Corp) (2018 – 2022); and
            • Assistant Manager of Special Investigations and Forensic Audit of PT Sinarmas Agro Resources and Technology Tbk
              (2022).
            Dual Appointments
            Head of Internal Audit Unit of Avian Brands (2023 – present).
            Education/Training in 2024
            This information is presented in the Competence Development of the Internal Audit Unit section of this Annual Report.
            Affiliation
            Is not an affiliate of members of the Board of Commissioners, members of the Board of Directors, as well as Main and
            Controlling Shareholders.




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Duties and Responsibilities of the Related Party Transaction Committee
The Related Party Transaction Committee is responsible for ensuring that all related party transactions conducted by
Avian Brands comply with applicable standards and fair transaction principles. Related Party Transaction Committee’s primary
duties include a comprehensive assessment of all related party transactions to ensure compliance with laws and regulations
as well as customary business practices. Further information on the duties and responsibilities of the Related Party Transaction
Committee, is described as follows:
1. Providing recommendations to the Board of Directors regarding affiliated transactions conducted by Avian Brands,
    such that they are in accordance with the generally accepted business practices, applicable laws and regulations, and meet
    the principles of fair transactions;
2. Assisting the Board of Directors to ensure that transactions conducted with related parties are not detrimental to the
    interests of Avian Brands and Avian Brands’ Independent Shareholders;
3. Cooperating with the Corporate Secretary, Finance Team, and Legal Team of Avian Brands in discussing and deliberating
    affiliated transaction plans to be undertaken by Avian Brands; and
4. Conducting special inspections related to affiliated transactions, if necessary.

Independence Statement of the Related Party Transaction Committee
The Related Party Transaction Committee is firmly committed to complying with the principle of independence in every aspect
of performing its duties and responsibilities. The committee structure consists of independent members with no affiliation
with any parties involved in the transactions, to ensure that all decisions and recommendations are made free from any
influence or conflict of interest. In performing this function, the Related Party Transaction Committee maintains objectivity
and transparency as well as actively avoids situations that may affect the integrity of the assessment process. Accordingly,
the Related Party Transaction Committee functions as the primary guard in ensuring that all affiliated party transactions are
carried out in accordance with principles of fairness and compliance with applicable regulations, thus improving stakeholders’
trust in Avian Brands’ business processes.

The Related Party Transaction Committee Meeting
Meeting Policy
Policy concerning the convening of Related Party Transaction Committee meetings establishes that meetings should
be regularly convened, at least once every four months. To ensure the effectiveness and validity of adopted resolutions,
meetings may only be convened if attended by a majority of the total members. This policy aims to ensure that all members
have the opportunity to participate in the decision-making process and that all related party transactions are thoroughly
reviewed in accordance with established principles.

Meeting Convention
Throughout 2024, the Related Party Transaction Committee has convened 3 meetings. Information regarding the number of
meetings and meeting attendance by members of the Related Party Transaction Committee is described as follows:

                                                                              Number of
            Name                              Position                                                Total Attendance            Attendance (%)
                                                                               Meeting
                                  Chairman of the Related Party
 Kurnia Hadi Sinanto                                                                 3                           3                       100.00
                                  Transaction Committee
                                  Member of the Related Party
 Wardiman*                                                                           3                           1                        33.33
                                  Transaction Committee
                                  Member of the Related Party
 Bobby Septian Yahya                                                                 3                           3                       100.00
                                  Transaction Committee

*) Term of office as Member of the Related Party Transaction Committee commenced on September 17, 2024 replacing Mr. Fitradewata Teramihardja.


Competence Development of the Related Party Transaction Committee
Avian Brands is consistently committed to improving knowledge and competence of Related Party Transaction Committee
members through continuous development programs. Each year, Related Party Transaction Committee members participate in
various training and development programs designed to upgrade their knowledge and improve their ability to effectively carry
out their duties and responsibilities. This ensures that the Related Party Transaction Committee remains alert to challenges and
changes in the business and regulatory environment.




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Information related to competence development programs attended by Related Party Transaction Committee members
throughout 2024 has been disclosed in the profile section of each Related Party Transaction Committee member.

Implementation of Duties and Responsibilities of the Related Party Transaction Committee
The implementation of the Related Party Transaction Committee’s duties is focused on ensuring that every related party
transaction conducted by Avian Brands complies with fair business principles and in accordance with applicable regulations.
The Related Party Transaction Committee is responsible for assessing and providing recommendations related to affiliated
party transactions’ conformity with common market practices, as well as their compliance with relevant regulations.
Further information regarding the implementation of the Related Party Transaction Committee’s duties carried out throughout
2024, is described as follows:
1. Periodically discussing, on a quarterly basis, related party transactions, among others:
    a. Purchase of PVC pipe products by PT Tirtakencana Tatawarna (distributor) from PT Avia Avian Industri Pipa
        (manufacturer);
    b. Purchase of plastic packaging goods for finished goods products by Avian Brands from PT Mitra Mulia Makmur;
    c. Purchase of ancillary building material products by PT Tirtakencana Tatawarna (distributor) from PT Kencana Lintasindo
        Internasional (manufacturer);
    d. Leasing of warehouse/depot for distribution activities by PT Tirtakencana Tatawarna from PT Sarana Depo Kencana;
        and
    e. Purchase of calcium carbonate by Avian Brands from PT Panca Kalsiumindo Perkasa.
2. Discussing the affiliated transactions planned to be carried out by Avian Brands with the affiliated parties that must be
    reported to the OJK, among others space or building rental agreements, and sales of Avian Brands assets.




The Corporate Secretary
The Corporate Secretary is a Avian Brands’ organ responsible for supporting the Board of Directors in internal and external
communication aspects. This role encompasses managing communication among Avian Brands’ organs, as well as the
relationship between Avian Brands and Shareholders, regulators, and various other stakeholders. The Corporate Secretary also
ensures that Avian Brands complies with all applicable laws and regulations in the capital market. Moreover, the Corporate
Secretary is responsible for providing public information accessible to stakeholders based on reasonable needs. Through
these duties, the Corporate Secretary ensures transparency and disclosure of information that are essential in maintaining
Avian Brands’ integrity and accountability.



The Corporate Secretary Charter
Avian Brands has a Corporate Secretary Charter in place, which was stipulated on August 16, 2021 (“Corporate Secretary
Charter”). The Corporate Secretary Charter was formulated to regulate the functions and responsibilities of the Corporate
Secretary in order that they may be carried out in an efficient, transparent, accountable, and independent manner in accordance
with the prevailing laws and regulations.



Party Appointing and Dismissing the Corporate Secretary

The Corporate Secretary is directly responsible to the Board of Directors and is appointed and dismissed by virtue of
a Board of Directors Resolution. Each appointment, replacement, or dismissal of the Corporate Secretary shall be notifed to the
Financial Services Authority, to ensure transparency and compliance with applicable regulations. Thus, the Corporate Secretary
appointment and dismissal process is carried out by taking into account regulatory compliance, as well as the appointed
individual’s integrity and capability to carry out the duties and responsibilities of the Corporate Secretary.




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Profile of the Corporate Secretary




      HERA SEPTI
      ASTUTI
      The Corporate Secretary



      Indonesian, 39 years old, domicile in Jakarta.


          Basis of Appointment
          The Board of Directors Decree of Avian Brands No. 012/AA/SK/DIR/VIII/2022 dated August 31, 2022.

          Educational Background
          • Bachelor of Law from Atma Jaya University, Jakarta in 2007; and
          • Master of Notarial from Pelita Harapan University, Jakarta in 2019.

          Certifications
          • The Advocate Professional Exam (“UPA”) – The Indonesian Advocates Association (“PERADI”); and
          • Basic 1 Course of Capital Market Legal Consultant Professional Education - Capital Market Legal Consultant
            Association (“HKHPM”) and FHP Education of Law (“FHP”).

          Work Experiences
          • Legal Staff of Notary Office of Dr. Misahardi Wilamarta, S.H., M.Kn. (2008 – 2010);
          • Senior Legal of PT Profesional Telekomunikasi Indonesia (2010 – 2017);
          • Corporate Secretary Manager of PT Graha Layar Prima Tbk (2018 – 2020); and
          • Corporate Secretary Manager of Avian Brands (2021 – 2022).

          Dual Appointments
          -



Duties and Responsibilities of the Corporate Secretary

The Corporate Secretary’s duties and responsibilities are based on the Corporate Secretary Charter which stipulates its critical
role in supporting effective communication among Avian Brands’ organs, maintaining relationships with stakeholders,
ensuring compliance with capital market regulations, and providing accurate and accessible public information. Further
information on the duties and responsibilities of the Corporate Secretary is described as follows:
1. Keeping abreast of capital market developments, in particular the prevailing laws and regulations in the capital market
    sector;
2. Providing input to the Board of Commissioners and the Board of Directors concerning compliance with the laws and
    regulations in the capital market sector;
3. Disclosing information to the public, including the availability of information on Avian Brands’ website;




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4.  Submitting reports to the Financial Services Authority in a timely manner;
5.  Convening and documenting GMS and meetings of the Board of Commissioners and/or the Board of Directors;
6.  Conducting orientation programs for the Board of Commissioners and/or the Board of Directors;
7.  Coordinating preparation and submission processes of the Annual Report and Sustainability Report;
8.  Acting as the liaison between Avian Brands and the Shareholders, the Financial Services Authority, and other stakeholders;
9.  Representing Avian Brands in correspondence with capital market authorities in accordance with the authority granted by
    Avian Brands; and
10. Submitting periodic reports, no fewer than once a year, regarding the implementation of the Corporate Secretary functions
    to the Board of Directors, copied to the Board of Commissioners.



The Corporate Secretary Competence Development

Avian Brands is consistently committed to improving the knowledge and competence of the Corporate Secretary through
continuous development programs. Each year, the Corporate Secretary participates in various training and development
programs designed to upgrade her knowledge and improve her ability to effectively carry out her duties and responsibilities.
This ensures that the Corporate Secretary Committee remains alert to challenges and changes in the business and regulatory
environment. Information related to competence development programs attended by the Corporate Secretary throughout
2024 is described as follows:

          Date                                           Description                                                Organizer
                                                                                                                OJK and Indonesian
                         Dissemination of Financial Services Authority (Otoritas Jasa Keuangan or “OJK”)
                                                                                                              Public Listed Companies
     January 16, 2024         Regulation No 18 of 2023 concerning Issuance and Requirements of
                                                                                                               Association (Asosiasi
                                             Sustainability-Based Bonds and Sukuk
                                                                                                             Emiten Indonesia or “AEI”)
                                                                                                               Indonesia Corporate
                            In-depth discussion of OJK Regulation No. 14/POJK.04/2022 concerning
      March 7, 2024                                                                                            Secretary Association
                            Submission of Periodic Financial Reports of Issuers or Public Companies.
                                                                                                                      (“ICSA”)
                                                                                                                  Indonesia Stock
                                                                                                                Exchange (“IDX”) &
      April 25, 2024               ESG Investing: What is it and why investors care about it?
                                                                                                                Sustainable Finance
                                                                                                                     Indonesia
                              Dissemination of IDX Regulation No. I-I concerning Stock Splits and
      April 26, 2024                                                                                                    IDX
                                Reverse Stock Splits by Listed Companies that Issue Securities.
                                                                                                              ICSA & Global Reporting
      May 29, 2024             Webinar on “The ESG Ratings Phenomenon: What, Why, and How”.                    Initiative (“GRI”) ASEAN
                                                                                                                        Network
                        Dissemination of Financial Services Authority (Otoritas Jasa Keuangan or “OJK”)
                                                       regulations, namely:
                                      1. OJK Regulation No. 20 of 2023 concerning Users of
                              International Financial Accounting Standards in the Capital Market;
      June 13, 2024                 2. OJK Regulation No. 29 of 2023 concerning Buyback of                              OJK
                                             Shares Issued by Public Companies; and
                             3. OJK Regulation No. 4 of 2024 concerning Reports on Ownership of,
                           or Any Change of Ownership of, Shares in Public Companies and Reports
                                   on the Activities of Encumbering Public Company Shares
      July 31, 2024                  Journey to Sustainability with PT Pertamina (Persero).                             ICSA
      August 2, 2024      Webinar on Comprehensive Guide to Integrated Annual Report Excellence                          AEI
                              Webinar on an in-depth discussion of OJK Regulation No. 3 of 2021
September 19, 2024                                                                                                      ICSA
                                  concerning the Organization of Capital Market Activities.
                                                                                                               ICSA and Indonesia
                                    Webinar on Convening of Electronic General Meeting of                       Central Securities
     October 29, 2024
                                         Shareholders (“E-GMS”) through eASY.KSEI.                            Depository (Kustodian
                                                                                                              Sentral Efek Indonesia)
                           Dissemination of SPE-IDXnet regarding adjustments to Accountant Public
 December 13, 2024                                                                                                      IDX
                         and/or Public Accounting Firm, Structured Warrants, and ESG Reporting forms.




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Implementation of the Duties of the Corporate Secretary

The implementation of the Corporate Secretary’s duties includes various activities to ensure harmonious and transparent
relationships between Avian Brands and its stakeholders. The Corporate Secretary actively coordinates communication between
the Board of Directors, the Board of Commissioners and the Shareholders, and maintains good relations with regulators and
other relevant institutions. The Corporate Secretary is also responsible for supervising and ensuring Avian Brands’ compliance
with all applicable capital market laws and regulations, as well as providing public information that is relevant and accessible to
all interested parties. Further details regarding the implementation of the Corporate Secretary’s duties carried out throughout
2024 is described below:
1. Organizing and facilitating the meetings of the Board of Directors, the Board of Commissioners, and various committees,
     such as the Audit Committee, the Nomination and Remuneration Committee, the Good Corporate Governance Committee,
     and the Related Party Transaction Committee, including preparing minutes of meetings;
2. Monitoring changes in capital market regulations and ensuring that Avian Brands complies with applicable regulations,
     including publishing 12 monthly reports concerning shareholding registration, 4 Financial Reports, 1 Annual Report,
     and 1 Sustainability Report throughout 2024;
3. Improving competence and knowledge by attending various professional trainings;
4. Maintaining communication with capital market regulators, such as the Financial Services Authority and the Indonesia
     Stock Exchange, as well as other supporting institutions;
5. Carrying out various activities to ensure transparency of Avian Brands’ information to the public, including the publication
     of 19 press releases;
6. Regularly updating information on Avian Brands’ investor relations section on the website; and
7. Preparing and formulating the Corporate Secretary work program for 2025.




The Internal Audit Unit
The Internal Audit Unit is Avian Brands’ organ responsible for supporting the Board of Directors in the aspects of overseeing and
evaluating the internal control system. The Internal Audit Unit plays an integral role in providing independent and objective
insight, assurance, and consultation to improve Avian Brands’ operational value and effectiveness. By adopting a systematic
approach, the Internal Audit Unit consistently evaluates and improves the effectiveness of risk management, internal control,
and GCG implementation. Through a comprehensive audit process, the Internal Audit Unit contributes to improving operational
quality and efficiency, to ensure that all aspects of Avian Brands’ activities are in accordance with established standards and
applicable regulations, and to assist Avian Brands in achieving its strategic objectives more transparently and accountably.



The Internal Audit Unit Charter
Avian Brands has an Internal Audit Charter in place, which was stipulated on August 16, 2021 (“Internal Audit Charter”).
This Internal Audit Charter is used as guidelines and work instructions for the Internal Audit Unit so that its functions and roles
may be carried out effectively.



Party Appointing and Dismissing the Internal Audit Unit

The Internal Audit Unit is led by the Head of Internal Audit Unit, appointed and dismissed by the President Director with the
Board of Commissioners’ approval, in accordance with the provisions set forth in the Internal Audit Charter. Any changes in
Internal Audit Unit leadership, either appointment, replacement, or dismissal thereof, must be reported to the Financial Services
Authority to ensure transparency and compliance with applicable regulations. This process not only ensures accountability in
the management of the Internal Audit Unit, but also fosters integrity and trust in Avian Brands’ internal control practices.




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Profile of Head of the Internal Audit Unit

          BOBBY SEPTIAN YAHYA
          Head of the Internal Audit Unit

          Term of Office and Basis of Appointment
          The Board of Directors Decree No. 004/AA/SK/DIR/IV/2023 dated April 6, 2023.


The complete profile of the Head of the Internal Audit Unit can be found in the Profile of the Related Party Transaction
Committee section of this Annual Report.



Structure and Position of the Internal Audit Unit

             The Board of                                                                          President Director
            Commissioners


           Audit Committee                                                                         Internal Audit Unit




The Internal Audit Unit structure is directly under the President Director, which ensures that all implementation of the Internal
Audit Unit’s duties and responsibilities are reported directly to the President Director. This structure allows the Internal Audit
Unit to ensure that audit evaluations and recommendations are prioritized by Avian Brands’ top executives. This structure further
highlights Avian Brands’ commitment to transparency and effectiveness in its internal control system and allows for prompt and
appropriate corrective action to improve Avian Brands’ performance and compliance. This structure supports integrity in the audit
process and strengthens accountability in the implementation of Avian Brands’ internal control policies and procedures.

The composition of Avian Brands’ Internal Audit Unit in 2024 consisted of 8 members, with 1 member serving as the Head of
the Internal Audit Unit and 7 others as Members of the Internal Audit Unit



Duties and Responsibilities of the Internal Audit Unit

The Internal Audit Unit’s duties and responsibilities are based on the Internal Audit Charter, which stipulates its crucial role
in ensuring the effectiveness and efficiency of Avian Brands’ internal control system. The Internal Audit Unit is tasked with
conducting comprehensive monitoring and assessment of applicable policies, procedures, and practices, aimed at identifying
risks and ensuring compliance with applicable regulations. The Internal Audit Unit is also tasked with providing objective and
independent recommendations to improve the quality and performance of Avian Brands’ operations. Further information on
the duties and responsibilities of the Internal Audit Unit is described as follows:
1. Formulating and implementing an annual internal audit plan;
2. Testing and evaluating the implementation of internal control and risk management systems in accordance with Avian
    Brands’ policies;
3. Conducting inspections and assessments of the efficiency and effectiveness in finance, accounting, operations,
    human resources, marketing, information technology, and other activities;
4. Providing suggestions on improvements and objective information relating to audited activities to all managerial levels;
5. Compiling reports on audit results and submitting them to the President Director and the Board of Commissioners;
6. Monitoring, analyzing, and reporting the implementation of the suggested follow-up improvements;
7. Cooperating with the Audit Committee;
8. Developing programs to evaluate the quality of the audit activities it performs; and
9. Conducting special inspections, if necessary.




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Certificates of Expertise of the Internal Audit Unit

The certificates of expertise held by the Internal Audit Unit ensure the quality and credibility of audit functions within
Avian Brands. Such certification ensures that each Internal Audit Unit member possesses in-depth knowledge of auditing
principles and practices, as well as complies with internationally recognized professional standards. Through the certification
process, each Internal Audit Unit member is able to demonstrate his/her competence in conducting objective and independent
assessments of internal control systems and risk management practices. Information concerning certificates of expertise held
by the Internal Audit Unit, is described as follows:

                                            Certifications                                                Number of Employee
 Practical Implementation of Operational Audit - Yayasan Pendidikan Internal Audit                              1 Employee
 Risk-Based Internal Audit - Yayasan Pendidikan Internal Audit                                                  1 Employee
 ISO 9001:2015 on Quality Management System                                                                    2 Employees
 ISO 14001:2015 on Environmental Management System                                                             2 Employees
 ISO 45001:2018 on Occupational Health and Safety Management System                                            2 Employees
 Internal Auditor of Integrated Management System                                                              2 Employees
 Risk Based Audit                                                                                               1 Employee



The Internal Audit Unit Meeting

Meeting Policy
The Internal Audit Unit has the authority to convene regular meetings internally, such as meetings with the Board of Directors,
and the Audit Committee, and externally, such as meetings with public accounting firm. These meetings aim to discuss
and evaluate the findings of General Audit, Compliance Audit, and Operational Improvement. Through these meetings,
the Internal Audit Unit can ensure that all aspects of the audit are closely scrutinized and ensure effective follow-up on findings
and recommendations.

Meeting Convention
Throughout 2024, the Internal Audit Unit convened 12 meetings with the members of the Board of Directors, 3 meetings with
the Audit Committee, and 2 meetings with Public Accounting Firm.



The Internal Audit Unit Competence Development

Avian Brands is consistently committed to improving the knowledge and competence of the Internal Audit Unit through
continuous development programs. Each year, the Internal Audit Unit participates in various training and development
programs designed to upgrade his knowledge and improve his/her ability to effectively carry out his duties and responsibilities.
This ensures that the Internal Audit Unit remains alert to challenges and changes in the business and regulatory environment.
Information related to competence development programs attended by the Internal Audit Unit throughout 2024 is described
as follows:

                    Date                                  Description                                  Organizer
            February 15, 2024                   Document Control & Filling System                        Proxsis
              April 29, 2024                           Emotional Inteligence                             Tancorp



Implementation of Duties of the Internal Audit Unit

Implementation of the Internal Audit Unit’s duties includes various strategic activities designed to ensure the effectiveness
of the internal control system and improve Avian Brands’ operational performance. The Internal Audit Unit conducts
comprehensive audits, comprising General Audit, Compliance Audit, and Operational Improvement. During these processes,




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the Internal Audit Unit systematically evaluates and assesses risks, identifies potential issues, and recommends improvements
to optimize existing processes and systems. Further information regarding the implementation of the Internal Audit Unit’s
duties carried out throughout 2024 is described as follows:
1. Conducting audit inspections on finance and accounting areas, which include:
    a. Audit inspections on cash and banks;
    b. Audit inspections on receivables and sales made by Avian Brands;
    c. Audit inspections on debts and purchases made by Avian Brands; and
    d. Audit inspections on Avian Brands’ fixed assets.
2. Conducting audit inspections on operational areas, which include:
    a. Audit inspections on finished goods inventory and operational processes taking place in the finished goods area;
    b. Audit inspections on inventories in production areas and production processes (raw material consumption, output
        finished goods, and Bill of Materials);
    c. Audit inspections on raw material inventories and operational processes taking place in the raw material area; and
    d. Audit inspections on waste and Hazardous Material items resulting from production.
3. Conducting audit inspections on purchase and expense areas, which include:
    a. Audit inspections on salary and overtime payments made by Avian Brands;
    b. Audit inspections on the purchasing process and suppliers working with Avian Brands;
    c. Audit inspections on projects and maintenance; and
    d. Audit inspections on promotion expenses.
4. Conducting audit inspections on Avian Brands’ Subsidiaries

In addition to carrying out the aforementioned duties, the Internal Audit Unit submits audit reports to the Board of
Directors no later than the 5th of each month.




Public Accountant
Independent supervision functions over Avian Brands’ financial aspects are realized through external audits conducted by the
Public Accounting Firm (Kantor Akuntan Publik or “KAP”). These external audits aim to ensure that all financial information
and data presented by Avian Brands meet the principles of accountability, independence, and fairness. The audit processes
conducted by KAP provide assurance to Shareholders, regulators, and other stakeholders that Avian Brands’ Financial
Statements have been prepared in accordance with applicable accounting standards. This reflects transparency and
objectivity of Avian Brands’ financial condition. The external audit results also aid Avian Brands in identifying areas that require
improvement and enhancement, in order to encourage better financial performance in the future.



Compliance with Indonesian Financial Accounting Standards

Compliance with Indonesian Financial Accounting Standards is Avian Brands’ principal commitment to preparing and
presenting the Financial Statements. Avian Brands consistently ensures that all financial transactions are recorded and reported
in accordance with applicable Financial Accounting Standards in Indonesia as described as follows:
1. The Financial Accounting Standards (“FAS”) stipulated by the Indonesian Institute of Accountants (Ikatan Akuntan Indonesia
    or “IAI”); and
2. Decree of the Chairman of the Capital Market and Financial Institutions Supervisory Agency (Badan Pengawas Pasar Modal
    Lembaga Keuangan or “Bapepam-LK”) No. KEP-347/BL/2012 on the Guidelines for the Presentation and Disclosure of
    Financial Statements of Issuers or Public Companies.
By complying with this standard, Avian Brands also strives to maintain public confidence and ensure the integrity of
the financial information presented.




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External Audit Procedures and                                   Upon preliminary selection by the Audit Committee,
Auditing Standards                                              recommendations for KAP appointment are then submitted
                                                                to the Board of Commissioners for review and resolution.
The audit of Avian Brands’ Financial Statements is conducted    In general, there are 2 mechanisms for KAP appointment,
in accordance with the professional standards of public         namely appointment by Shareholders through the GMS or
accountants, which encompasses all audit procedures             delegation of GMS authority to the Board of Commissioners
deemed appropriate to the specific conditions of                by establishing criteria or limits for the appointed KAP.
Avian Brands. These audit procedures include testing,           Both mechanisms ensure flexibility while upholding the
examining, and evaluating the Financial Statements to           GCG principles implemented by Avian Brands.
ensure their compliance with the FAS established by IAI.
Through this process, the KAP seeks to ensure that Avian        Upon approval, Avian Brands will appoint the selected KAP
Brands’ Financial Statements are presented accurately and       through a formal resolution. The appointment of a Public
fairly, and provide reliable and transparent information to     Accountant and Public Accounting Firm is then reported to
Shareholders, regulators, and other stakeholders.               the OJK by attaching:
                                                                1. The appointment document and the recommendation
As part of the audit process, the KAP conducts a question           of the Audit Committee;
and answer session with Avian Brands’ Management                2. The self-assessment result received from the KAP; and
concerning statements disclosed in the Financial                3. Employment agreement documents with the Public
Statements. In the event of discrepancies in the presentation       Accountant and Public Accounting Firm.
of the report, the KAP is obliged to report them to
Avian Brands’ Management. Avian Brands’ Management              The appointed KAP is responsible for conducting an external
is then responsible for reviewing and approving the audit       audit of Avian Brands’ Financial Statements in accordance
working papers prepared by KAP, which will be reviewed          with the professional standards of public accountants
by the relevant bodies or authorities. This process ensures     and prevailing laws and regulations. This process ensures
that all aspects of the Financial Statements have been          an objective and transparent appointment of the Public
thoroughly examined and complied with applicable                Accountant to maintain the integrity and credibility of
accounting standards, thereby maintaining the integrity         Avian Brands’ external audit.
and credibility of Avian Brands’ financial information.

                                                                2024 Public Accountant
Appointment Mechanism of
Public Accountant                                               Appointment of a Public Accountant and/or KAP to
                                                                audit Avian Brands’ Consolidated Financial Statements
Avian Brands’ Public Accountant appointment mechanism           for the financial year ended December 31, 2024, was
adheres to a transparent procedure in accordance with the       based on the resolution of the Annual GMS convened on
provisions of OJK Regulation No. 9 of 2023 concerning the       April 4, 2024. In the resolution, the GMS delegated its
Use of Public Accountants and Public Accounting Firms in        authority to Avian Brands’ Board of Commissioners to select
Financial Services Activities. This process commences with      a Public Accountant and/or Registered KAP in Indonesia.
an evaluation of the need for an external audit by the Audit    The selected Public Accountant is responsible for ensuring
Committee. The Audit Committee selects and recommends           that the audit is conducted according to professional
a reputable KAP that meets the professionalism and              accounting standards, ensuring accuracy and transparency
independence requirements.                                      in Avian Brands’ Financial Statements, and compliance with
                                                                all applicable regulations to provide reliable information to
                                                                all stakeholders.

                                                                In this regard, the Board of Commissioners has appointed
                                                                the Public Accounting Firm of Teramihardja, Pradhono &
                                                                Chandra (a member firm of Crowe global) as the external
                                                                auditor to audit Avian Brands’ Consolidated Financial
                                                                Statements. This KAP was selected for its reputation
                                                                and extensive experience in conducting audits of major
                                                                companies in Indonesia. This appointment is expected to
                                                                provide confidence that Avian Brands’ Financial Statements
                                                                will be audited thoroughly and independently in accordance
                                                                with applicable accounting standards.




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List of Public Accounting Firms and Public Accountants for the Last 5 Years

To maintain transparency and accountability of financial information, Avian Brands has continuously worked with reputable
and experienced KAPs. The list of Public Accountants and KAPs that have audited Avian Brands’ Consolidated Financial
Statements over the last 5 years is described as follows:

 Financial Year                Public Accounting Firms                    Name of Accountant                    Opinion
                  Public Accounting Firm of Teramihardja, Pradhono &
      2024                                                                    Agustina Felisia                 Unmodified
                  Chandra (a member firm of Crowe global)
                  Public Accounting Firm of Tanudiredja, Wibisana,
      2023                                                                          Ely                        Unmodified
                  Rintis & Rekan (a member firm of PwC global network)
                  Public Accounting Firm of Tanudiredja, Wibisana,
      2022                                                                          Ely                        Unmodified
                  Rintis & Rekan (a member firm of PwC global network)
                  Public Accounting Firm of Purwantono, Sungkoro &
      2021                                                                  Benyanto Suherman                  Unqualified
                  Surja (a member firm of Ernst & Young Global Limited)
                  Public Accounting Firm of Purwantono, Sungkoro &
      2020                                                                Muhammad Kurniawan                   Unqualified
                  Surja (a member firm of Ernst & Young Global Limited)



Other Services Provided

There were no other services provided by the Public Accounting Firm of Teramihardja, Pradhono & Chandra (a member firm
of Crowe global) other than audit services on Avian Brands’ Consolidated Financial Statements for the fiscal year ended
December 31, 2024.




Internal Control System
The Internal Control System (“ICS”) is a series of procedures and mechanisms designed to assist Avian Brands in achieving its
operational objectives effectively and efficiently. The ICS is an integral part of the managerial structure that involves all levels
of the organization, from upper management to the employees. This system aims to provide reasonable assurance on the
achievement of Avian Brands’ objectives and ensure that Avian Brands’ activities are in accordance with established policies
and procedures.

The ICS includes various aspects as described below:
1. Operational Control to ensure effectiveness and efficiency of Avian Brands’ operational activities. This control includes
   protecting Avian Brands’ assets from risk of loss or misappropriation, and optimizing the use of resources to achieve optimal
   results.
2. Reporting Control to ensure the accuracy and integrity of the Financial Statements presented. This control aims to ensure
   that the resulting Financial Statements are reliable and reflect the actual financial condition, both for internal and external
   purposes.
3. Compliance Control to provide assurance on Avian Brands’ compliance with all applicable laws and regulations.
   This control includes compliance with laws, regulations, and established internal policies to maintain Avian Brands’ ethical
   and legal standards.

The ICS is not just about supervision and control, but also about creating an environment that supports the achievement
of Avian Brands’ strategic objectives. By effectively implementing ICS, Avian Brands is able to minimize operational risks,
improve the reliability of Financial Statements, ensure regulatory compliance, and, in turn, promote the overall growth and
sustainability of Avian Brands.




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Implementation of Internal Control System

Implementing the ICS is a fundamental step in ensuring that Avian Brands’ operational activities are conducted with optimal
efficiency and effectiveness. The ICS is designed to establish a structure that contributes to achieving Avian Brands’ strategic
objectives, mitigating risks, and ensuring compliance with applicable regulations. Integrating the ICS into every operational
and managerial aspect enables Avian Brands to maintain the integrity and reliability of business processes. The implementation
of ICS in Avian Brands is described as follows:

Components of Internal
                                                                Implementation in Avian Brands
   Control System
                             Reviewing the comparison between budget target and realization through periodic reports. Similarly,
                             effective control requires the implementation of a clear and multi-level authorization system.
 Finance
                             Structured authorization levels ensure that every expenditure is in accordance with the established
                             authority, thus maintaining accountability and minimizing the risk of irregularities in budget management.
                             Requiring all employees to comply with Standard Operating Procedures (“SOPs”), which regulate
                             various procedures for operational activities to ensure efective and efficient performance. In addition to
 Operation                   implementing SOPs, operations optimization is also carried out by reducing manual work through an
                             integrated system. This approach not only improves efficiency, but also minimizes risks of deviations or
                             violations in the implementation of operational activities.
 Assets                      Insuring all fixed assets of Avian Brands under insurance covering fire and other risks.
                             Through the Corporate Secretary, the Board of Directors, the Audit Committee, the Nomination and
 Compliance with             Remuneration Committee, the Good Corporate Governance Committee, the Related Party Transaction
 Applicable Laws             Committee, and the Internal Audit Unit, continuously communicating and coordinating to review
 and Regulations             Avian Brands’ compliance with applicable laws and regulations. The Corporate Secretary also regularly
                             follows the development of laws and regulations, especially those related to the capital market.


Effective ICS implementation involves more than just creating and establishing structured policies and procedures.
This process requires active involvement and commitment from all organizational levels to ensure optimal operation of the
control system. This involvement includes ongoing counseling and training to employees, to ensure that they understand,
and are capable of applying, ICS principles in their daily activities. Further, ICS implementation must be flexible and adaptive,
capable of responding to changing business environments, new risks, and regulatory developments. Therefore, the ICS must
be continuously evaluated and refined based on the evaluation results to ensure that the ICS remains relevant and effective in
contributing to the achievement of Avian Brands’ strategic objectives and maintaining operational integrity and transparency.



Overview of the Effectiveness of Internal Control
The Internal Audit Unit systematically assesses the effectiveness of ICS implemented in all business lines to ensure that every
aspect of Avian Brands’ operations functions optimally and in accordance with established standards. This evaluation process
is designed to identify potential shortcomings, weaknesses, or non-compliance with applicable policies and procedures.
The assessment results provide valuable insights used to formulate recommendations for improvement to strengthen the
implementation of ICS in each operational function.

In ensuring that the implementation of ICS is working well, the Internal Audit Unit does several things as described as follows:

1. Conducting independent inspections within Avian                      4. Ensuring that the internal control risk management
   Brands to increase the added value of Avian Brands’                     and corporate governance process of Avian Brands is
   operations by providing independent and objective                       sufficient and functioning properly;
   assurances and consultations;                                        5. Evaluating compliance with prevailing laws, regulations,
2. Supporting the achievement of objectives through                        as well as policies and procedures of Avian Brands;
   the adoption of a systematic approach by evaluating                  6. Evaluating whether or not key financial, managerial,
   and improving the effectiveness of risk management,                     and operational information within the scope of the
   control, and good corporate governance processes;                       audit is presented accurately, completely, reliably, and in
3. Serving as a professional advisor to the Board of                       a timely manner;
   Directors as well as a catalyst for all work units and Avian         7. Identifying any potential savings and cost-effectiveness,
   Brands as a whole;                                                      and providing recommendations to improve cost
                                                                           efficiency and effectiveness;




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8. Performing special assignments from the Board of Directors, the Board of Commissioners, and/or the Audit Committee
   that are relevant to the aforementioned scope of works, for example investigation and disclosure of irregularities, fraud,
   and waste; and
9. Preparing audit reports and recommendations for improvements.



Statement of the Board of Commissioners and the Board of Directors on
the Implementation of Internal Control System

The Board of Commissioners and the Board of Directors consistently ensure a systematic, structured, and sustainable ICS
implementation, by conducting periodic evaluations. Throughout 2024, the Board of Commissioners and the Board of
Directors’ evaluation indicated that the ICS implemented by Avian Brands has met the standards in terms of effectiveness,
efficiency, reliability, and compliance with laws and regulations. All aspects of the ICS, from operational controls to reporting
and compliance, functioned properly with no significant material weaknesses found in this system. Findings and irregularities
identified in operational activities were properly handled and rectified, demonstrating the ICS’s capability to support
Avian Brands’ strategic objectives and ensure transparent and accountable management. This commitment reflects the
ongoing efforts of the Board of Commissioners and the Board of Directors to ensure that ICS is compliant with applicable
standards as well as adaptive to dynamic changes in the business environment.




Risk Management System
The risk management system is a systematic and integrated approach designed to identify, evaluate, and manage potential
opportunities and threats that may affect the achievement of Avian Brands’ objectives. By implementing an effective risk
management system, Avian Brands can navigate challenges and changes in the business environment with greater agility,
ensuring that all potential risks are addressed in a comprehensive and structured manner. This approach allows Avian Brands
to minimize adverse impacts and optimize the benefits of any opportunities, to minimize disruption to business operations and
achieve desired results more efficiently.

In its implementation, the risk management system is an integral part of every strategic and operational decision of
Avian Brands. This process involves in-depth risk assessment and proactive implementation of mitigation measures, ensuring
that each business aspect is managed in a well-planned and measurable manner. By continuously developing and strengthening
the risk management system, Avian Brands ensures that all business activities are sustainable, resilient and well-prepared to
face uncertainty and change with maximum preparedness.



Types and Mitigation of Risks

Based on a study conducted in 2024, the risks faced by Avian Brands and its mitigation efforts are described as follows:

                                  Main Risks with Significant Influence on Business Continuity
                          Indication                                                            Mitigation
 Avian Brands’ business activities depend on the continued         • Performing continuous benchmarking with competitors to ensure that
 success of its key brands, such as Avian, Avitex, and No Drop;      such products remain superior in the market;
 and any failure to maintain the brand strength and value of       • Allocating funds to support the marketing efforts for such products;
 such products could have a material and negative impact           • Continuing the development of such products to maintain or improve
 on the business activities, financial condition, and results of     quality; and
 operations of Avian Brands.                                       • Adding variants of such products to strengthen the brand image and
                                                                     capture the growing needs in the market.




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                                             Risks related to Business and Industry
                        Indication                                                           Mitigation
Avian Brands faces intense competition, and should it fail • Increasing investment in product development, being selective in
to compete effectively, it may lose market share and its     promotional and advertising activities, as well as product distribution;
operating results may be negatively affected.              • Pricing Avian Brands’ products competitively based on a combination
                                                             of various factors, including Avian Brands’ ability to differentiate these
                                                             products from other competing products; and
                                                           • Adding a distribution network to strengthen Avian Brands’ product
                                                             penetration.
                        Indication                                                           Mitigation
Avian Brands’ efforts to innovate and develop products may • Developing a complete and modern Research, Development,
not be successful.                                           and Innovation (“RDI”) center by recruiting and developing qualified
                                                             chemist personnel;
                                                           • Preserving good relationships with suppliers of materials to obtain
                                                             information on the developments of the latest materials; and
                                                           • Recruiting experts in the global coating sector.
                        Indication                                                           Mitigation
In maintaining the success of its business, Avian Brands relies • Improving the quality of Avian Brands’ human resources;
on the availability of certain core personnel and its success in • Paying care and attention to the recruitment, development, and career
recruiting and retaining other qualified personnel.                path processes; and
                                                                 • Building partnerships with leading universities/academies to secure
                                                                   quality talents.
                        Indication                                                           Mitigation
Avian Brands’ main business activities depend on a stable and Procuring and maintaining a consistent and adequate supply of raw
adequate supply of raw materials, and the operating results materials at a reasonable price by always seeking or updating new
of Avian Brands may be materially affected due to rising raw (alternative) suppliers.
material costs or lack of raw material availability.
                        Indication                                                           Mitigation
Avian Brands leases important assets, such as warehouses Maximizing with a longer lease term (3 – 5 years).
and distribution centers. The inability to renew these leases
may affect Avian Brands’ operational capabilities.
                        Indication                                                           Mitigation
Avian Brands is involved in a number of transactions with Ensuring that all transactions with affiliated parties (Related Party
related parties (affiliates) and is not able to guarantee that Transactions) are carried out on an arm’s length basis to avoid negative
its operational results or financial condition will not be effects arising from unhealthy business practices.
negatively affected in the future if the provisions of these
agreements are terminated or amended in a way that may
potentially harm Avian Brands.
                        Indication                                                           Mitigation
Avian Brands may not be able to procure an adequate and • Ensuring that cooperation agreements with vendors are well
continuous supply of electricity, fuel, water, equipment,   maintained;
and spare parts, or to procure them at a favorable price. • Ensuring the availability of alternative vendors; and
                                                          • Looking for alternative energy sources, such as the use of solar panels,
                                                            so that the electricity supply reserves are maintained.


                                                            General Risks
                        Indication                                                           Mitigation
Avian Brands’ business activities, financial condition, results Monitoring global and national economic conditions, to ensure that
of operations, and business prospects may be negatively Avian Brands can formulate appropriate and flexible strategies to adapt
affected by global, regional, and national economic to existing changes.
conditions.
                        Indication                                                           Mitigation
Avian Brands may not be able to adequately protect its • Entering into license agreements with third parties;
intellectual property rights.                          • Relying on contractual agreements and legal protections to protect the
                                                         intellectual property rights of Avian Brands; and
                                                       • Relying on Indonesian patent, trademark, trade secret, and copyright
                                                         laws to protect the intellectual property rights of Avian Brands.




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                                                             General Risks
                         Indication                                                              Mitigation
Avian Brands may fail to obtain or experience material delays Ensuring that all certificates, permits, licenses, and other matters relating
in obtaining or renewing the certificates, licenses, permits, or to permits for operational activities, including leases, are continuously
Government approvals required for Avian Brands’operations updated.
and relevant leasing activities for its manufacturing facilities.
As a result, Avian Brands’ business activities, financial
condition, and operational results may be materially affected.
                         Indication                                                              Mitigation
Regulation of greenhouse gas emissions and climate Implementing and improving the Environmental Management System
change issues may have a negative impact on Avian Brands’ (ISO 14001) and Energy Management System (ISO 50001), as well as
operations and markets.                                   monitoring the consistency of implementation in our environment,
                                                          for example the development of environmentally friendly products
                                                          (green label), the use of renewable energy (solar panels), and the use
                                                          of electric forklifts to replace diesel, as well as replacing solar energy for
                                                          thermo and boilers with gas energy. In line with that, programs related
                                                          to environmental concerns are also constantly aligned with ISO 26000,
                                                          which is one of the guiding standards on social responsibility.

                                                                 Avian Brands has also established emission reduction targets that are
                                                                 monitored regularly by the Quality Assurance and Sustainability team.
                                                                 This oversight ensures the achievement of targets is in line with Avian
                                                                 Brands’ sustainability commitments, while supporting contributions to
                                                                 overall environmental impact reduction.
                         Indication                                                              Mitigation
Labor activism, riots, and labor laws in Indonesia may have a Avian Brands’ constant efforts to comply with all regulations related to
materially adverse effect on Avian Brands.                    employment to minimize related risks.


                                                            Financial Risks
                         Indication                                                              Mitigation
MForeign Currency Risk                                           Being continually diligent in paying obligations of Avian Brands in foreign
The functional currency of Avian Brands is Rupiah. Avian         currencies in order to avoid speculative effects and performing limited
Brands is exposed to foreign exchange rate risk as some of its   hedging actions (forward contracts). All bank loans, if any, are in Rupiah.
purchases and operating costs are denominated in foreign         Avian Brands also monitors foreign currencies movement, especially USD.
currencies. This risk arises from the weakening/strengthening
of the value of a foreign currency against Rupiah causing the
debt and operational costs in Rupiah to decrease/increase.
                         Indication                                                              Mitigation
Credit Risks                                                       • Policies to ensure product sales are made only to customers who may
Risks arising from the customer’s inability or delay in fulfilling   be trusted and proven to have a good credit history;
all debts from credit sales to Avian Brands.                       • Purchases on credit must go through credit verification procedures;
                                                                   • Providing credit terms mostly up to 63 days from the invoice issuance
                                                                     date;
                                                                   • Continuously monitoring the balance of receivables to reduce the
                                                                     possibility of uncollectible receivables; and
                                                                   • Ensuring that customers, particularly Avian Brands’ distributors,
                                                                     provide payment security which may be in the form of cash (deposits),
                                                                     bank guarantees, or payment security through distributor financing
                                                                     from banks that cooperate with Avian Brands.
                         Indication                                                              Mitigation
Liquidity Risks                                        •           Managing liquidity profile to ensure Avian Brands’ ability to fund capital
Risks arising from Avian Brands’ inability to meet its             expenditures;
obligations as they fall due.                          •           Managing maturing debts by maintaining sufficient cash;
                                                       •           Ensuring the availability of funding through sufficient numbers of
                                                                   committed credit facilities; and
                                                                 • Evaluating projected and actual cash flows, and continuously assessing
                                                                   conditions on financial markets for opportunities to pursue fundraising
                                                                   initiatives.
                         Indication                                                              Mitigation
Interest Rate Risk                                              Review of various interest rates offered by creditors by the management
Risks arising from loan facilities provided to Avian Brands for to find the most favorable interest rates prior to any debt commitment.
working capital and investment purposes.




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Overview of the Implementation Effectiveness of Risk Management System

Avian Brands regularly conducts comprehensive assessments to ensure the effectiveness of risk management system
implementation and maximize the results of the mitigation efforts undertaken. This review includes an in-depth analysis of
the plans and actions that have been implemented to assess if the results are consistent with the intended objectives and
to identify areas for improvement. This evaluation aims to provide a clear picture of the advantages and disadvantages of
the implemented strategy. Based on the results of the review, necessary corrective measures are then implemented to address
the identified shortcomings. This approach allows Avian Brands to ensure that its risk management system remains relevant
and effective in addressing emerging challenges and supporting the sustainability and achievement of Avian Brands’ strategic
objectives on an ongoing basis.



Statement of the Board of Commissioners and the Board of Directors on the
Implementation of Risk Management System

The Board of Commissioners and the Board of Directors remain committed to ensuring that Avian Brands’ risk management
system is implemented with a systematic, structured and sustainable approach. Periodic evaluation of this system is conducted
to ensure that the risk identification, assessment and management mechanisms are functioning optimally. The assessment for
2024 showed that the implemented risk management system has met the required standards, enabling Avian Brands to better
manage existing risks and take timely mitigation measures.

Despite the effectiveness of the current risk management system, the Board of Commissioners and the Board of Directors
recognize that the dynamics of the evolving business environment require continuous adaptation. Accordingly, it is a priority
to continuously develop and refine the risk management system. The Board of Commissioners and the Board of Directors are
committed to integrating evaluation results into the improvement measures, to ensure that the system remains relevant and
capable of addressing new challenges more effectively. This commitment aims to strengthen Avian Brands’ resilience and
support the achievement of long-term goals, while managing risks in the most optimal way.




Legal Disputes with Material Impacts and
the Administrative Sanctions Imposed
Legal Disputes with Material Impacts
Throughout 2024, no legal disputes with material impact, either civil or criminal, were faced by Avian Brands, the Subsidiaries,
the Board of Commissioners, and the Board of Directors.


Administrative Sanctions
Throughout 2024, no administrative sanctions were imposed on Avian Brands, the Board of Commissioners, and
the Board of Directors by the Financial Services Authority, the Indonesia Stock Exchange, or other authorities.




Code of Conduct
Avian Brands recognizes the importance of implementing excellent governance practices to ensure sustainable business
growth and enhance long-term corporate value. In this regard, Avian Brands has formulated and implemented a Business
Ethics and Code of Conduct that stipulate standards of behavior that must be observed by all employees, including
the Board of Directors, the Board of Commissioners, and Avian Brands’ supporting organs in performing their roles, authorities
and responsibilities, as well as in interacting in the work environment. The Business Ethics and Code of Conduct establishes
the basic principles of honesty, integrity, and professionalism as guidelines for performing duties and interacting in the work
environment.



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By having the Business Ethics and Code of Conduct, Avian Brands aims not only to conduct business activities based on high
ethical standards, but also to build and maintain a harmonious relationship between Avian Brands’ operations and the interests
of all stakeholders. The Business Ethics and Code of Conduct are expected to strengthen GCG implementation and improve
stakeholders’ relationships and satisfaction, both those directly involved in corporate activities as well as those affected by
Avian Brands’ activities. By consistently implementing its Business Ethics and Code of Conduct, Avian Brands is committed to
achieving high ethical standards in every aspect of its business.


Principles of Business Ethics and Code of Conduct
The principles of Avian Brands’ Business Ethics comprise the following:

 1                                                                 6
      Compliance with prevailing
                                                                          Company Ethics for Mass Media
      Laws and Regulations

 2                                                                 7
      Company Ethics for Company Personnel                                Company Ethics for Business Partners


 3                                                                 8
      Company Ethics for Consumers                                        Responsibilities to the Government


 4                                                                 9
                                                                          Responsibilities to Society and
      Company Ethics for Shareholders
                                                                          the Environment

 5                                                                 10
      Company Ethics for Competitors                                      Responsibilities in Innovation



The principles of Avian Brands’ Code of Conduct comprise the following:

 1                                                                 8
      Individual Commitment                                               Giving and Receiving of Gratuities


 2                                                                 9
      Communication and Information Delivery                              Integrity of Financial Reporting


 3                                                                 10
      Maintainance of the Confidentiality of Data,
                                                                          Protection of Company Assets
      Confidential Information, and Material

 4                                                                 11
      Use of Company Technology                                           Budget Planning and Use


 5                                                                 12
                                                                          Occupational Health and
      Cooperation between Company Personnel
                                                                          Safety and Environment (“OHSE”)

 6                                                                 13
      Equality in Treatment and
                                                                          Conflict of Interests
      Provision of Opportunities

 7
      Compliance with prevailing
      Laws and Regulations




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Forms of Socialization and Efforts to Disseminate Business Ethics and Code of Conduct

Avian Brands actively socializes the Business Ethics and Code of Conduct to all employees as part of its commitment to
implementing GCG principles. This socialization ensures that every individual in the organization understands and complies
with the established standards of conduct. Through the Good Corporate Governance Committee, Avian Brands conducts an
intensive and continuous socialization program, which commences from the start of employment and continues periodically
thereafter. Among the socialization methods implemented, are the signing of the Integrity Pact as stipulated in form
No. AA-HRD-FRM-01-010, and the availability of Business Ethics and Code of Conduct on Avian Brands’ website to facilitate
employees in obtaining the necessary information.

As part of this effort, Avian Brands also conducts regular training and disseminates information regarding the Business Ethics
and Code of Conduct through various internal communication channels. Through this approach, Avian Brands aims to foster a
strong organizational culture and ensure that all employees understand and implement ethical values in every aspect of their
work. These efforts contribute creating of a professional, harmonious work environment in line with GCG principles.



Efforts in Enforcing Business Ethics and Code of Conduct

Avian Brands is committed to enforcing the Business Ethics and Code of Conduct at all organizational levels, from the
employees to the Board of Directors and the Board of Commissioners. This policy aims to ensure that every aspect of business
activities is carried out in accordance with strict ethical standards and applicable regulations. In this endeavor, Avian Brands
has established the Good Corporate Governance Committee, which is responsible for overseeing the implementation of,
and compliance with, the Business Ethics and Code of Conduct across all work environments. The Good Corporate Governance
Committee is tasked with ensuring that ethical principles are thoroughly integrated into every business activity and decision,
to maintain integrity and transparency throughout Avian Brands’ operational processes.



Sanctions for Violation of Business Ethics and Code of Conduct

Avian Brands establishes a series of sanctions as a form of consequence for violations of the Business Ethics and Code of
Conduct committed by each Avian Brands’ Personnel. Sanctions may include disciplinary actions of verbal or written warnings,
stern warnings with suspension, monetary fines, and termination of employment (Pemutusan Hubungan Kerja or “PHK”)
if necessary. Enforcement of these sanctions aims to ensure strict compliance with Avian Brands’ ethical standards and enforce
discipline across all levels of Avian Brands in order to maintain integrity and quality of a professional work environment.




Employee Stock Allocation Program
Avian Brands implements a policy that allows employees to own Avian Brands’ shares through the employee stock allocation
(“ESA”) program. This program is conceived as part of Avian Brands’ efforts to improve employee well-being and strengthen
their sense of belonging and involvement in Avian Brands’ progress. By providing access to share ownership, Avian Brands
hopes to boost employees’ motivation and loyalty, while establishing a closer link between individual performance and
Avian Brands’ overall success.



Requirements on Employee Eligibility for the ESA Program

Avian Brands ensures effective and fair implementation of the ESA program by establishing a set of requirements that
must be fulfilled by employees who are eligible to participate in the ESA program. These requirements may include various
aspects, particularly the minimum length of service, position, as well as other aspects that are of particular consideration.




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Thus, the ESA program represents a form of appreciation, as well as motivation for employees to keep contributing optimally to
Avian Brands’success. Further information regarding the requirements of employees eligible to participate in the ESA program
is described as follows:
1. Permanent employees who have been registered as employees on the date determined by Avian Brands (“ESA Date”);
2. Employees participating in the ESA program and the number of shares to be allocated to participants in the ESA program
    take into account their tenure, position, and other considerations;
3. So long as there remain shares allocated in the ESA program, the Board of Directors of Avian Brands may allocate the
    remaining shares in the ESA program to employees who start their employment after the ESA Date;
4. Shares originating from the ESA program are subject to a lock-up period, and, therefor,e may not be transferred in any way
    for 24 months from the date of listing of Avian Brands’ shares on the Indonesia Stock Exchange;
5. In the event that an employee resigns when the lock-up period has not ended, the shares will be transferred to another
    employee, free of charge, in accordance with the policy of the Board of Directors; and
6. In the event that an employee dies when the lock-up period has not ended, the shares will be transferred, free of charge,
    to their legal, and provable to the Board of Directors of Avian Brands, heirs in accordance with the policy of the Board of
    Directors.



Implementation of the ESA Program

Avian Brands has realized the ESA program implementation in 2021. A number of employees have participated in this program
and thus become part of Avian Brands’ Shareholders. Details regarding the implementation of the ESA program are described
as follows:

                   Number of Shares                                Execution Period                      Execution Price
 3,099,300 shares or 0.05% of new shares in the Initial
                                                                   December 2 – 6, 2021                       IDR930.-
 Public Offering.



Parties Responsible for the Implementation of the ESA Program

Avian Brands has ensured proper implementation of the ESA program in accordance with its intended objectives, by appointing
parties responsible for managing and supervising the entire ESA program implementation. The parties responsible for the
implementation of Avian Brands’ ESA program, among others:
1. Department of HR Development;
2. Department of Business Development; and
3. Department of Finance.

These departments are responsible for implementing the ESA program within their respective roles and functions and ensuring
the transparent and effective implementation of the program.




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Information Disclosure Policy
The policy concerning ownership, either directly or indirectly, of Avian Brands’ shares by the Board of Commissioners and the
Board of Directors, as well as changes thereto, has been regulated in details, in the Policy on Reports of Share Ownership or
Changes to the Share Ownership of the Board of Commissioners and the Board of Directors stipulated on December 27, 2021,
and last updated on October 11, 2024. This policy aims to ensure full transparency and maintain integrity in share ownership
reports. With this policy, Avian Brands ensures that any changes to the Board of Commissioners’ and the Board of Directors’
share ownership are reported in a transparent and accurate manner, support GCG principles, as well as provide relevant
information to stakeholders and the public consistently.

The reporting mechanism and reporting period by every member of the Board of Commissioners and Board of Directors
regarding ownership of Avian Brands’ shares and changes thereto are as follows:

                         Self-Reporting                                           Reporting through Authorization
 Members of the Board of Commissioners or members of the Board       Members of the Board of Commissioners or members of
 of Directors directly submit a report to the Financial Services     the Board of Directors submit a report through the Corporate
 Authority (Otoritas Jasa Keuangan or “OJK”) and deliver a copy      Secretary by attaching a Special Power of Attorney no later than
 of the report to the Corporate Secretary. The reporting period is   2 calendar days from the effective date of the ownership or every
 no later than 5 working days to OJK from the occurrence of the      change in share ownership in Avian Brands. The reporting period
 ownership or every change in share ownership in Avian Brands.       is no later than 5 working days to OJK from the occurrence of the
                                                                     ownership or every change in share ownership in Avian Brands.


Avian Brands also submits a transaction report to the OJK no later than 5 days from the transaction date. In this regard,
Avian Brands has submitted reports on the share ownership of members of the Board of Commissioners and/or
Board of Directors throughout 2024 via e-reporting to the Financial Services Authority and the Indonesia Stock Exchange.



Share Ownership Disclosure

Disclosure of ownership, either directly or indirectly, of Avian Brands’share can be found in the Composition of Share Ownership
by Members of the Board of Commissioners and the Board of Directors in Avian Brands Profile chapter of this Annual Report.




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Whistleblowing System
Avian Brands remains committed to the comprehensive implementation of GCG principles by implementing
a Whistleblowing System (“WBS”) as stipulated in the Whistleblowing System Guidelines established on June 25, 2021, and
last updated on December 27, 2021. This system serves as a proactive measure to prevent fraud and deceit from occurring in
Avian Brands’ operations. Through the WBS, all stakeholders are afforded channels to report suspected violations or breaches
of applicable regulations, based on valid evidence and good faith for the interests of Avian Brands. Effective implementation
of the WBS allows Avian Brands to conduct necessary evaluations and follow-ups to strengthen integrity and transparency in
every aspect of Avian Brands’ activities.



Method of Submission and Parties Managing Reports of Violations

Avian Brands encourages every individual within Avian Brands to be active and have the courage to report any violations or
fraud that they encounter. In the reporting process, the whistleblower is expected to provide complete and clear information
about the reported case. This includes details about the incident, the parties involved, and relevant evidence to support the
report. Therefore, any reports submitted can be processed effectively and accurately to ensure proper measures are taken
to address and resolve any violations that occur. The information that needs to be included in submitting a violation report
includes the following:


 1                                                                5
      Types of Actions Suspected as Violation.                         How the Violation Occurred.


 2                                                                6
                                                                       If the Violation Has Been Reported to
      Parties Involved in Violation.
                                                                       Other Parties.

 3                                                                7
                                                                       If the Violation Has Occurred Before
      Location of Violation.
                                                                       and Is a Repeated Action.

 4                                                                8
      Time of Violation.                                               Other Important and Relevant Information.



Reports concerning violations may be submitted to the following channels:

The Good Corporate
Governance Committee
                                                                (62) 81138505000

              Avian Brands Building
                                                                      www.avianbrands.com
              Jl. Ahmad Yani No. 317
              Surabaya 60234
              Jawa Timur, Indonesia                                   pengaduan@avianbrands.com




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Avian Brands establishes a special mechanism to handle reports of violations by involving authorized parties in accordance
with the classification of the report received. The authorized parties are responsible for receiving, assessing, and investigating
the reports received. They ensure that each report is processed carefully and in accordance with applicable procedures.
This process involves a thorough investigation of incoming reports to identify and address the breach and implementing the
necessary corrective measures. The entire process is conducted with due regard to the principles of transparency, accountability
and confidentiality to protect the whistleblower and ensure the integrity of the investigation. The parties authorized to follow
up on reporting in Avian Brands are:



                   The Good Corporate Governance                                       The Board of Commissioners,
                   Committee and its officers,                                         if the reported party is a member of
                   if the reported party is an employee                                the Board of Directors.
                   of Avian Brands.



                   The Board of Directors,                                             The Board of Commissioners and
                   if the reported party is a member of the                            the Board of Directors,
                   Whistleblowing System Management.                                   if the reported party is a member of
                                                                                       the Board of Commissioners.




Protection for Whistleblowers

Avian Brands is committed to providing comprehensive protection to whistleblowers to reduce potential risks that may
arise from reporting. To ensure that whistleblowers feel safe and secure, their identity as well as the details of the submitted
report will be kept confidential and only accessed by those authorized to handle the report. Avian Brands assures that the
whistleblower will be protected from all forms of threats, intimidation, or any adverse actions that may be committed by
parties who feel aggrieved by the reporting. This protection further extends to individuals involved in the investigation process
and those who provide additional information related to the report, provided that they maintain confidentiality. With this
policy, Avian Brands aims to create a safe and supportive environment for whistleblowers, and encourage transparency and
honesty in the reporting process without fear of retaliation or negative consequences.



Procedures in Handling Violation Reports

Any report of violations received will be followed up by the collection of preliminary evidence to ensure the validity and
completeness of the information submitted. Upon examination of preliminary evidence, the Good Corporate Governance
Committee will conduct a comprehensive evaluation to determine whether the report meets the criteria for further action.
If the report is deemed worthy of investigation, its status will be escalated and information will be submitted to the Board of
Directors for further action. However, if the report does not meet the investigation criteria, the whistleblower will be informed
of the decision and the reasons behind it.

Reports concerning employees will be processed in the form of an official letter sent to the President Director, while reports
concerning the Board of Directors will be forwarded directly to the Board of Commissioners. This procedure ensures that each
report of violation is handled systematically and in accordance with the standards to ensure transparency and accountability
in the complaint-handling process.




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Complaints Disclosure through Whistleblowing System in 2024

Number of Complaints through Whistleblowing System
As of the end of 2024, Avian Brands received 3 complaint reports submitted to the whistleblowing system with the following
description:

                                                    Report Category                                                        Total Report
 Fraud
 Reporting of a case that results in Avian Brands’ financial loss.                                                                0

 Major Violations
                                                                                                                                  1
 Reporting of a case that constitutes a violation of the SOP or Company Regulation.
 Minor Violations
                                                                                                                                  1
 Reporting of a case that constitutes a violation of the employee and workplace discipline/organization.
 No Issue
                                                                                                                                  1
 Reporting of a case that does not indicate a violation.


All reports of violations received by Avian Brands have been thoroughly handled by the competent team and resolved in
accordance with the level of violation and the provisions of the applicable regulations in Avian Brands. The resolution processes
were conducted in compliance with established procedures to ensure that each action was adjusted to the characteristics
and impact of the violation that occurred. Thus, Avian Brands ensures that each report was followed up appropriately and in
accordance with applicable internal policy standards.

Sanctions and Follow-ups of Complaints through Whistleblowing System
If, based on the investigation results, it is proven that the reported party committed fraud or violation, the deciding official will
impose sanctions in accordance with applicable regulations.




Anti-Corruption and Gratification Policy

Anti-Corruption and Gratification Programs and Procedures

Avian Brands is committed to ensuring that all business and operational activities are carried out with accountability and
transparency in accordance with applicable laws and regulations. In upholding these principles, Avian Brands strictly prohibits
all forms of bribery, corruption, gratuities, and money laundering. This anti-corruption and anti-gratuity policy is an integral
part of Avian Brands’ Business Ethics and Code of Conduct. The policy includes the following:

1. Avian Brands’ Personnel may provide gifts, souvenirs, or               3. Avian Brands Personnel are allowed to receive something
   entertainment to eligible parties under these conditions:                 from Avian Brands and/or other parties, which will
   a. Supporting the interests of Avian Brands, conducted                    not affect their actions related to their position and
       responsibly and does not cause harm to Avian                          occupation in Avian Brands, in the case of:
       Brands’ image, and done with due regard to the                        a. Receiving a banquet;
       relevant applicable regulations;                                      b. Receive promotional items that contain the logo/
   b. Not intended to bribe and/or offer or direct another                       name of the providing company;
       party to commit bribery; and                                          c. In the context of donations in the event of a disaster
   c. Not intended to induce the recipient to take any                           and/or certain celebrations/events according to
       action that is contrary to his/her obligations or to                      local customs; and
       applicable regulations;                                            4. Submit a disclosure report on each granting and
2. Avian Brands Personnel are prohibited from receiving                      receiving of gratuities in accordance with the procedures
   gifts, souvenirs, entertainment, or other facilities or                   established by Avian Brands
   gratuities in any form related to their position and
   occupation, which may affect Avian Brands’ decision-
   making or violate applicable regulations;



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Training or Socialization of Anti-Corruption and Gratification Policy

To ensure effective implementation of this policy, Avian Brands has conducted a comprehensive socialization to
Avian Brands Personnel. Each Avian Brands personnel is required to sign the Integrity Pact as a form of commitment to the
policy. For new employees, socialization is carried out through an induction program specifically designed to introduce and
enforce anti-corruption and anti-gratuity policies from the start of their employment with Avian Brands.




Policy to Prevent Insider Trading

Avian Brands has implemented the Insider Trading                  This policy sets clear limits on the use of material information
Prevention Policy adopted on December 27, 2021, as an             that has not been made public, as well as prohibits parties
integral part of Avian Brands’ efforts to maintain market         having access to confidential information from engaging
integrity and avoid conflicts of interest. This policy aims to    in trading that could harm Avian Brands’ interests or create
ensure that all securities trading activities of Avian Brands     market unfairness. With this measure, Avian Brands is
are conducted in a fair and transparent manner and to             determined to prevent any form of abuse of information,
protect the interests of Avian Brands in implementing             and ensure that all activities involving Avian Brands’
various corporate actions. With this policy, Avian Brands is      securities are carried out in compliance with the principles
committed to maintaining market fairness and protecting           of transparency and accountability.
integrity of information related to securities trading.




Policy on Fulfillment of Creditors’ Rights

Avian Brands strictly governs the fulfillment of creditors’       In implementing this policy, Avian Brands pays attention
rights through the Policy adopted on December 27, 2021.           to both the interests of local creditors and international
This policy is designed as a comprehensive guideline              creditors in an equal manner. Both the creditors located in
in the management of loans and liabilities to creditors,          the territory of the Republic of Indonesia (onshore creditors)
both domiciled domestically and abroad. With this policy,         and outside the territory of Indonesia (offshore creditors)
Avian Brands is committed to maintaining integrity of its         will get equal and transparent treatment in accordance with
relationship with creditors and ensuring that all their rights    the applicable provisions. Therefore, Avian Brands strives to
are fulfilled in a fair and timely manner. This is essential to   ensure that all aspects related to the fulfillment of creditors’
build and maintain creditor’s confidence in Avian Brands’         rights are carried out with the principles of fairness and
ability and commitment to meet its financial obligations.         responsibility.




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Conflict of Interest Guidelines

Avian Brands recognizes the crucial importance of strictly      With the Conflict of Interest Guidelines, Avian Brands strives
addressing conflicts of interest to ensure optimal Avian        to ensure that every decision and action taken within
Brands management and harmonious relationships with all         the scope of Avian Brands, is free from personal interests
stakeholders. Therefore, Avian Brands has formulated Conflict   that may harm Avian Brands’ integrity. These guidelines
of Interest Guidelines that aim to create a transparent and     are thoroughly enforced to ensure that all Avian Brands’
fair environment. These guidelines refer to the prevailing      elements operate within the same framework to achieve
laws and regulations, and integrate the principles under the    Avian Brands’ objectives in a sustainable manner and to
GCG Guidelines of Business Ethics and Code of Conduct, as       consistently safeguard Avian Brands’ values.
well as the Corporate Culture applicable in Avian Brands.
The adoption of these guidelines and update thereof,
on June 25, 2021 and December 27, 2021, respectively,
reflect Avian Brands’ commitment to continuously enforcing
the highest standards in managing potential conflicts of
interest.




Communication Policy Guidelines

Avian Brands has stipulated the Communication Policy            Established on December 27, 2021, the Communication
Guidelines to govern effective and transparent interactions     Policy Guidelines also serve as assurance that
with the Shareholders, the Capital Market Authority,            Avian Brands maintains standards of communication in
and the capital market community. These guidelines are          every interaction with related parties. These guidelines
designed to ensure that all information submitted by            support Avian Brands’ effors to maintain integrity
Avian Brands is complete, accurate, actual, not misleading,     and credibility in providing information and ensuring
easily accessible in accordance with statutory provisions,      that all stakeholders receive equal and fair treatment.
and fair. With these guidelines, Avian Brands aims to           Thus, these guidelines are instrumental in building trust
provide convenient and fair access for all Shareholders,        and harmonious relationships between Avian Brands and
allowing them to exercise their rights in a fair and            its stakeholders.
transparent manner.




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Policy Guideline in Resignation Procedure
of the Board of Commissioners and
the Board of Directors in the Event of
Involvement in Financial Crime

Avian Brands has established a Policy Guideline in Resignation      Established on December 27, 2021, this Policy Guideline
Procedure of the Board of Commissioners and the Board of            reflects Avian Brands’ commitment to clean and responsible
Directors in the Event of Involvement in Financial Crime,           governance practices. With this guideline in place,
as an integral part of the efforts to thoroughly implement          Avian Brands emphasizes its determination to enforce the
GCG principles. These guidelines are designed to ensure that        rules and strictly respond to violations, in order to protect
any member of the Board of Commissioners and the Board of           Avian Brands’ reputation and sustainability. This guideline
Directors involved in financial crimes, shall automatically be      serves as a guide for preventive as well as responsive actions
obliged to submit his/her resignation from his/her position.        in dealing with situations involving allegations of financial
This constitues a strategic measure to maintain integrity           crimes by Avian Brands’ upper management.
and transparency in Avian Brands’ management, and ensure
that all Avian Brands’ leaders fulfill their duties in accordance
with ethical standards and applicable laws.




Affiliated Transaction Guidelines

Avian Brands has established the Affiliated Transaction             As part of implementing Related Party Transaction
Guidelines as the main point of reference to ensure that            Guidelines, Avian Brands has also established a specific
all transactions with affiliated parties are conducted              policy to review and approve transactions with related
transparently in accordance with applicable industry                parties. This policy is implemented through the process of
standards. These guidelines are designed to guide all               reporting porposed transactions, from the relevant work
Avian Brands’ Personnel in conducting transactions                  units to the Corporate Secretary and Legal Department.
in order to comply with customary business practices                The Corporate Secretary and the Legal Department will then
and relevant laws and regulations. By upholding                     coordinate with the Related Party Transaction Committee
the arms-length principle, the Guidelines ensure that               to review the proposed transactions, and the results will
affiliated party transactions are conducted fairly and do not       be submitted by the Related Party Transaction Committee
improperly favor a certain party.                                   to the Board of Directors and the Audit Committee.
                                                                    Upon review by the Audit Committee, results thereof shall
Established on November 16, 2022, the Affiliated Transaction        be submitted to the Board of Commissioners for approval.
Guidelines also serve to strengthen the management’s                If approved, the transaction is consummated in accordance
independence in managing relationships with affiliated              with OJK Regulation No 42/POJK.04/2020 concerning
parties. The main objective is to prevent potential conflicts       Affiliated Transactions and Confict of Interest Transactions;
of interest and avoid actions that may harm the interests of        including reporting to and approval of Independent
Avian Brands and its Shareholders. With these guidelines,           Shareholders, if required. Each such transaction is constantly
Avian Brands is committed to maintaining integrity                  ensured to comply with applicable procedures and arms’
and objectivity in all transactions in order to protect             length principles.
Avian Brands’ interests and ensure that all transactions are
carried out in a transparent and fair manner.




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Succession Policy in
the Board of Commissioners and
the Board of Directors Nomination Process
Avian Brands has established the Succession Policy in the           Adopted on December 27, 2021, this policy also regulates
Board of Commissioners and Board of Directors Nomination            the procedures for assessing prospective members
Process to ensure the continuity of the leadership                  proposed by the Shareholders, the Board of Commissioners,
regeneration and formation process in Avian Brands.                 or the Board of Directors. The Nomination and Remuneration
This policy is designed to maintain business continuity and         Committee conducts a comprehensive evaluation of each
contribute to Avian Brands’ long-term goals. In this policy,        nomination, taking into account the qualifications and
the Nomination and Remuneration Committee is responsible            requirements in accordance with the Articles of Association
for developing systems and procedures for the selection and         and the Board of Commissioners Charter and/or the Board
replacement of members of the Board of Commissioners                of Directors Charter. Upon review, recommendations
and Board of Directors to be submitted to the GMS.                  are submitted to the Board of Commissioners for a final
Each nomination process adheres to GCG principles,                  resolution before submission to the GMS. This policy ensures
including transparency, accountability and responsibility.          efficient succession process and supports the sustainability
                                                                    of Avian Brands’ operations.




Implementation of Governance Guidelines
for Public Companies
Implementation of Avian Brands’ GCG has been conformed with the Corporate Governance Guidelines for Public Companies,
formulated based on the Circular Letter of the Financial Services Authority No. 32/SEOJK.04/2015. By adhering to this guideline,
Avian Brands ensures proper implementation of all policies and procedures in accordance with applicable regulations and thus
increasing stakeholders’ trust. Implementation of GCG also aims to create an effective supervisory system, prevent potential
conflicts of interest, and ensure integrity in decision-making. Through its commitment to implementing good governance,
Avian Brands strives to sustainably improve performance and maintain its reputation and credibility in the eyes of Shareholders,
regulators, and the wider community.

Avian Brands’ implementation of the principles and recommendations of the guidelines, based on the “fulfilled or explanation”
approach, is described as follows:

 No.      Aspects/Principles/Recommendations                     Status               Implementation in Avian Brands
  I.   Relationships of Public Company with the Shareholders in Assuring the Rights of the Shareholders
  1.   Increasing the Value of the General Meeting of Shareholders (GMS).
  a.   Public companies have technical voting methods or        Fulfilled     The voting procedure in the GMS has been
       procedures, both publicly and privately, that promote                  regulated in the Articles of Association related to the
       independence and the interests of shareholders.                        meeting rules and informed to the Shareholders in
                                                                              the invitation to the GMS and at the beginning of
                                                                              the GMS.
  b.   All members of the Board of Commissioners and the       Explanation    Mr. Wijono Tanoko as the President Director of
       Board of Directors of a public company attend the                      Avian Brands was unable to attend the 2024 Annual
       Annual GMS.                                                            GMS convened on April 4, 2024.
  c.   Summary of the GMS minutes is available on the           Fulfilled     The summary of the minutes of the 2024 GMS has
       website of the public company for at least 1 year.                     been posted on Avian Brands’ website in the Investor
                                                                              Information Center section.




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                                      GOOD CORPORATE GOVERNANCE




No.        Aspects/Principles/Recommendations                   Status                Implementation in Avian Brands
 2.     Improving the Quality of Public Company’s Communication with Shareholders or Investors.
 a.     Public companies have a communication policy with       Fulfilled      The communication policy with Shareholders or
        shareholders or investors.                                             Investors is regulated in the Communication Policy
                                                                               Guidelines stipulated on December 27, 2021.
 b.     Public companies disclose their communication           Fulfilled      Avian Brands’ communication policy has been
        policy with the Shareholders or Investors on the                       disclosed on its website.
        website.
 II.    Functions and Roles of the Board of Commissioners
 3.     Strengthening the Membership and Composition of the Board of Commissioners.
 a.     The determination of the number of members of the       Fulfilled      The number of members of the Board of
        Board of Commissioners takes into consideration the                    Commissioners is in accordance with the provisions
        conditions of the public company.                                      of Avian Brands’ Articles of Association and has
                                                                               been adjusted to the complexity of the business of
                                                                               Avian Brands.
 b.     The determination of the composition of members of      Fulfilled      The nomination and appointment of the Board of
        the Board of Commissioners takes into consideration                    Commissioners has taken into account the diversity
        the diversity of expertise, knowledge, and required                    of expertise, knowledge, and experience relevant to
        experience.                                                            the responsibilities carried out in Avian Brands.
 4.     Improving the Quality of the Implementation of the Duties and Responsibilities of the Board of Commissioners.
 a.     The Board of Commissioners has a self-assessment        Fulfilled      The performance assessment policy for the Board
        policy to assess the performance of the Board of                       of Commissioners is regulated in the Performance
        Commissioners.                                                         Assessment Policy of the Board of Directors and the
                                                                               Board of Commissioners which was stipulated on
                                                                               December 27, 2021.
 b.     The self-assessment policy to assess the performance    Fulfilled      The performance assessment policy for the Board of
        of the Board of Commissioners is disclosed in the                      Commissioners is conducted through self-assessment
        Annual Report of the public company.                                   which has been disclosed in this Annual Report in the
                                                                               description of the Performance Assessment of the
                                                                               Board of Commissioners.
 c.     The Board of Commissioners has in place a policy        Fulfilled      The policy concerning the resignation of the Board
        related to the resignation of members of the Board                     of Commissioners is regulated in the Policy in
        of Commissioners in the event of involvement in                        Resignation Procedure of the Board of Commissioners
        financial                                                              and the Board of Directors in the Event of Involvement
        crimes.                                                                in Financial Crime which was stipulated on
                                                                               December 27, 2021.
 d.     The Board of Commissioners or the Committee             Fulfilled      The succession policy for members of the Board of
        performing the nomination and remuneration                             Directors is contained in the Succession Policy in the
        functions formulates a succession policy in the                        Nomination Process for Members of the Board of
        nomination process of members of the Board                             Commissioners and the Board of Directors which was
        of Directors.                                                          stipulated on December 27, 2021.
 III.   Functions and Roles of the Board of Directors
 5.     Strengthening the Membership and Composition of the Board of Directors.
 a.     The determination of the number of members of           Fulfilled      The number of members of the Board of Directors is
        the Board of Directors takes into consideration                        in accordance with the provisions of Avian Brands’
        the condition of the public company, and its                           Articles of Association and has been adjusted to the
        effectiveness in decision-making.                                      complexity of the business of Avian Brands.
 b.     The determination of the composition of members         Fulfilled      The nomination and appointment of the Board of
        of the Board of Directors considers the diversity of                   Directors has taken into account the diversity of
        expertise, knowledge, and required experience.                         expertise, knowledge, and experience relevant to the
                                                                               responsibilities carried out in Avian Brands.
 c.     Members of the Board of Directors in charge of          Fulfilled      The Director in charge of accounting or finance has
        accounting or finance have the expertise and/or                        experience in accounting and finance.
        knowledge in accounting.
 6.     Improving the Quality of the Implementation of the Duties and Responsibilities of the Board of Directors.
 a.     The Board of Directors has in place a self-assessment   Fulfilled      The performance assessment policy for the Board
        policy to assess the performance of the Board of                       of Directors is regulated in the Performance
        Directors.                                                             Assessment Policy for the Board of Directors and the
                                                                               Board of Commissioners which was stipulated on
                                                                               December 27, 2021.
 b.     The self-assessment policy to assess the performance    Fulfilled      The performance assessment policy for the Board
        of the Board of Directors is disclosed through the                     of Directors is conducted through self-assessment
        Annual Report of the public company.                                   which has been disclosed in this Annual Report in the
                                                                               description of the Performance Assessment of Board
                                                                               of Directors.

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                                                                                 PT Avia Avian Tbk • 2024 Annual Report




 No.       Aspects/Principles/Recommendations                    Status              Implementation in Avian Brands
  c.   The Board of Directors has in place a policy related to   Fulfilled   The policy concerning the resignation of the Board
       the resignation of members of the Board of Directors                  of Directors is regulated in the Policy in Resignation
       in the event of involvement in financial crimes.                      Procedure of the Board of Commissioners and the
                                                                             Board of Directors in the Event of Involvement
                                                                             in Financial Crime which was stipulated on
                                                                             December 27, 2021.
 IV.   Stakeholders Participation
  7.   Improving Corporate Governance Aspects through Stakeholders Participation.
  a.   Public companies have in place a policy to prevent        Fulfilled   The policy to prevent insider trading is set out in the
       insider trading.                                                      Policy to Prevent Insider Trading, which was stipulated
                                                                             on December 27, 2021.
  b.   Public companies have a policy in place to promote        Fulfilled   Avian Brands has an anti-corruption and anti-fraud
       anti-corruption and anti-fraud.                                       policy in place, which is contained in the Business
                                                                             Ethics and Code of Conduct of Avian Brands.
  c.   Public companies have a policy in place for the           Fulfilled   Avian Brands has in place a policy on the selection
       selection and improvement of the capabilities of                      and improvement of capabilities of suppliers which
       suppliers or vendors.                                                 serves as a guide for related units in selecting working
                                                                             partners as stated in the Business Ethics and Code of
                                                                             Conduct of Avian Brands.
  d.   Public companies have in place a policy on the            Fulfilled   The policy on the fulfillment of creditors’ rights is
       fulfillment of creditors’ rights.                                     regulated in the Policy on the Fulfillment of Creditors’
                                                                             Rights which was stipulated on December 27, 2021.
  e.   Public companies have a policy in place for               Fulfilled   Avian Brands has in place a Whistleblowing System
       whistleblowing systems.                                               Policy which is contained in the Whistleblowing
                                                                             System.
  f.   Public companies have in place a policy on provisions     Fulfilled   Avian Brands has in place a policy concerning the
       of long-term incentives for the Board of Directors                    provision of long-term incentives to employees as
       and employees.                                                        stated in the ESA Program.
  V.   Information Disclosure
  8.   Improving the Implementation of Information Disclosure.
  a.   Public companies use information technology               Fulfilled   Avian Brands utilizes information technology,
       more broadly, in addition to websites, as media for                   in addition to the website, in increasing the
       information disclosure.                                               dissemination of information, including through Avian
                                                                             Brands’ Youtube, Instagram, LinkedIn, and Facebook
                                                                             pages/profiles, as well as through platforms provided
                                                                             by regulators, including SPE OJK and IDXnet.
  b.   The Annual Report of a public company discloses the       Fulfilled   The Annual Report contains the ultimate beneficial
       ultimate beneficial owner in the public company’s                     owners in Avian Brands’ share ownership.
       share ownership of at least 5% of shares, in addition
       to the disclosure of the ultimate beneficial owner in
       the share ownership of the public company through
       the Main and Controlling Shareholders.

In addition to implementing GCG practices based on the Governance Guidelines for Public Companies, Avian Brands has also
implemented GCG practices based on the principles and recommendations of the 2021 General Guidelines for Indonesian
Corporate Governance (Pedoman Umum Governansi Korporat Indonesia or “PUGKI”). In general, GCG implementation based
on the 2021 PUGKI consists of 8 principles of good corporate governance which are categorized into the following 3 groups:
1. The first group of principles regulates the management and supervisory functions of the corporation, namely
    the Board of Directors and the Board of Commissioners;
2. The second group of principles governs the processes and outputs produced by the Board of Directors and
    Board of Commissioners; and
3. The third group of principles governs resource owners, who will primarily benefit from the implementation of corporate
    governance.

The implementation of each principle and recommendation of the 2021 PUGKI, including the steps taken to ensure the
effectiveness of management and supervision, as well as how these principles are integrated into daily business processes,
has been conveyed by Avian Brands in this Annual Report in accordance with the discussion of each topic. In addition,
analysis of their fulfillments has also been communicated through Avian Brands website. By disclosing the implementation of
the 2021 PUGKI in the Annual Report and the website, Avian Brands ensures transparency and accountability to all stakeholders,
and provides clear guidance on Avian Brands’ commitment to good and sustainable governance in accordance with industry
best practices


                                                                                                                                 191
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192
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                  PT Avia Avian Tbk • 2024 Annual Report




    Social and
Environmental
Responsibility



      “Avian Brands carries out its Social and
        Environmental Responsibility (“SER”)
        commitment through Environmental,
 Social, Governance (”ESG”) management, in
  order to ensure business sustainability and
     tangible contributions to stakeholders.
     This commitment is not only realized in
         every facet of its operations, but also
through the implementation of Avian Brands
    Peduli program which strengthens Avian
Brands’ role in supporting quality education,
  environmental sustainability, and disaster
     management, to improve the welfare of
  communities around its operational areas.”


                                                           193
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                                   SOCIAL AND ENVIRONMENTAL RESPONSIBILITY




Avian Brands’ Sustainability Commitment
Avian Brands is firmly committed to its Social and Environmental Responsibility (“SER”), manifested through the management
of Environmental, Social, Governance (“ESG”) in every aspect of its operations. Avian Brands constantly prioritizes this
commitment to maintaining business sustainability and creating long-term value for stakeholders. In each stage of its
operations, Avian Brands strives to minimize environmental impacts while simultaneously enhancing sustainability through
innovation and responsible management.

Implementation of this commitment is reflected in Avian Brands’ products, which uphold the principles of Product
Stewardship and have complied with the standards of the Singapore Green Label. These certifications prove that in addition
to their optimal functions, Avian Brands’ products are also environmentally friendly, free from hazardous materials, and
promote the health and well-being of its customers. Other than the product side, Avian Brands also carries out sustainable
operations by integrating the use of environmentally friendly energy, recycling waste into raw materials, as well as scalable
and well-planned emission management. Furthermore, Avian Brands conducts cradle-to-grave Life Cycle Assessment
(“LCA”) to ensure the entire product life cycle complies with sustainability standards.

In terms of social responsibility, Avian Brands manifests its responsibility through Avian Brands Peduli program, designed to
bring positive impacts to communities around Avian Brands’ operational areas. The program focuses on three main aspects,
i.e., education, environment, and disaster response. In the education sector, Avian Brands contributes to improving the
quality of education through various initiatives, such as improvements in educational facilities. In the environmental sector,
Avian Brands actively participates in environmental conservation and preservation efforts through various initiatives that
support the balance of the ecosystem. As for disaster response, Avian Brands provides quick and effective relief to communities
affected by natural disasters to help ease their hardship and help them recover. Through these programs, Avian Brands not only
contributes to environmental sustainability but also improves the well-being and quality of life of local communities.

All of Avian Brands’ SER activities are constantly guided by the prevailing and relevant laws and regulations, as described below:
1. Law No. 40 of 2007 on Limited Liability Companies;
2. Law No. 11 of 2000 on Job Creation;
3. Government Regulation in Lieu of Law (Peraturan Pemerintah Pengganti Undang-Undang or “Perpu”) No. 2 of 2022 on
     Job Creation;
4. Law No. 8 of 1999 on Consumer Protection; and
5. Government Regulation No. 47 of 2012 on Social and Environmental Responsibility of Limited Liability Companies.




194
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                                                                 PT Avia Avian Tbk • 2024 Annual Report




Sustainability Performance Overview

Sustainability of Economic Aspect
                                                                              (in millions Rupiah, unless otherwise stated)

                                        Description                        2024             2023              2022
 Direct Economic Value Generated
 Cash Received from Customers                                            7,229,124        6,850,984         6,781,888
 Other Receipts                                                             31,003            12,664            11,601
 Receipts of Finance Income                                                291,459          308,589           302,422
 Proceeds from Disposal of Fixed Assets                                     11,156            14,094            16,398
 Total Direct Economic Value Generated                                   7,562,742       7,186,331         7,112,309
 Distributed Economic Value
 Payments to Suppliers                                                   4,625,552        4,341,998         4,598,330
 Payments to Employees                                                     779,291          707,405           659,079
 Payment for Corporate Income Tax                                          380,615          482,000           377,003
 Dividend Payment to Shareholders                                        1,348,142        1,362,978         1,115,164
 Acquisition of Right-of-Use Assets                                         39,600            69,588            66,285
 Payment of Lease Liabilities                                               24,758            58,836            25,374
 Payment of Interest Expense                                                 2,539             4,077             6,463
 Expenses for the Community                                                  2,344             1,995             1,978
 Environmental Expenses                                                      1,293             1,059             1,524
 OHS Investment Cost                                                         1,307               886               841
 Total Distributed Economic Value                                       7,205,441        7,030,822         6,852,041
 Retained Economic Value                                                  357,301          155,509           260,268


                                 Description              Unit             2024             2023              2022
 Operational Performance
 Manufacturing Volumes                                 Metric Tons        197,339          180,540           170,986
 Environmentally Friendly Products
                                                      Product Brand             34               29                24
 Singapore Green Label Certified Product Categories
 Product or Service Quantity                          Product Brand           105                96                88
 Local Suppliers Engagement
 Local Suppliers
                                                       Number of
 Total Local Suppliers                                                        217               219               209
                                                       Company
 Percentage of Local Supplier Engagement by Entity
                                                           %                76.14             77.94             76.00
 compared to Total Suppliers
 Local Employees
 Total Local Employee                                    People            8,387*           7,577*            7,231*
 Percentage of Local Labor Involvement
                                                           %               90.03*           89.38*            89.54*
 in Avian Brands Operational Activities
Notes:
* AVIA, TKTW, and TKBI.


Sustainability of Environmental Aspect

                                Description             Unit               2024             2023              2022
 Energy Efficiency
 Total Energy Usage                                      GJ             211,358.89      215,727.57*       212,241.33*


                                                                                                                    195
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                                           SOCIAL AND ENVIRONMENTAL RESPONSIBILITY




                                 Description                                               Unit                2024             2023                2022
                                                                                   GJ/Ton of Product                0.17            0.18*               0.19
                                                                                       kWh/Ton of
                                                                                                                  47.20           49.74*              52.18*
 Energy Intensity                                                                       Product
                                                                                   Thousand Rupiah/
                                                                                                             36,137.43        37,775.99*       40,774.22*
                                                                                     Ton of Product
 Energy Intensity Efficiency                                                       GJ/Ton of Product                0.01            0.01*              0.01*
 Materials Used in Paint Production
 Renewable Materials Purchase                                                               Ton              89,589.48         72,903.20           61,888.17
 Non-Renewable Materials Purchase                                                           Ton              69,528.10         70,887.41           74,937.20
 Total Material Purchase                                                                    Ton            159,117.58        143,790.61        136,825.37
 Emissions Management**
 Total of Scope 1 and Scope 2 Emissions                                                  TonCO2e             11,244.89        11,299.92*       11,414.23*
                                                                                        KgCO2e/
 Intensity of Scope 1 and Scope 2 Emissions                                                                       23.26           24.45*              25.16*
                                                                                     Ton of Product
 Total Scope 3 Emissions                                                                 TonCO2e           154,786.52                     0                   0
 Water Management
 Total Water Usage                                                                      Megaliter                142.48           141.68             113.98
                                                                                       Megaliter/
 Water Intensity                                                                                                 0.0007          0.0008*             0.0008
                                                                                     Ton of Product
 Reduction of Hazardous Waste Generation
 Reuse of Industrial Waste Water                                                            Ton               2,650.14          1,820.24            2,482.98
 Reuse of Washing Solvent                                                                   Ton                  151.19           166.27             180.87
 Hazardous Waste (liquid and solid managed by third parties)                                Ton                  733.94           886.77             946.96
 Non-Hazardous Waste                                                                        Ton                  166.99           185.07             157.68
 Discharge Water                                                                        Megaliter                   4.80             3.83               4.14
 Biodiversity Preservation***
 Total Trees Planted                                                                       Trees                 20,794           14,880               6,797
 Type of Trees Planted                                                                     Type                     169                  94                  69
 Carbon Sequestration Value                                                              KgCO2e              4,835,028        1,200,987            941,337
Notes:
* Data restated.
** Scope 3 GHG emission is being measured only for 2024.
*** Data represents accumulated trees planted over the years by Avian Brands around the locations of AVIA, TKTW, and the slopes of Mount Arjuno.


Sustainability of Social Aspect

                                 Description                                               Unit               2024*            2023*               2022*
 Community Development and Empowerment (Pengembangan dan Pemberdayaan Masyarakat or “PPM”)**
 Number of PPM Program                                                                Total Program              195                98                 27
 Cost of PPM Program                                                                 Million Rupiah            2,344         1,995 ***              1,978
 Manpower Management
 Total Employees (Including Outsourcing)                                                  People               9,322           8,483 *             8,082 *
 Total Female Employees (Including Outsourcing)                                           People               2,109           1,724 *             1,626 *
 Number of Participants in the Competence Development                                     People               7,632             6,173              3,096
 Total Recordable Injury Rate                                                              Rate                 1.57              2.16               2.01
 Total Recordable Incident Frequency Rate                                                  Rate                 2.05              2.69               1.74
Notes:
* AVIA, TKTW, and TKBI;
** AVIA; and
*** Data restated.


A complete description of SER policies and programs is discussed more comprehensively in our Sustainability Report,
which is presented separately from this Annual Report.

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                                                                           PT Avia Avian Tbk • 2024 Annual Report




Annual Report Responsibility



 Statement of Members of the Board of Commissioners and the Board of Directors
               on the Responsibility for the 2024 Annual Report of
                               PT Avia Avian Tbk



       We, the undersigned, hereby declare that all information in the 2024 Annual Report of PT Avia Avian Tbk
  (the “Company”) has been completely presented and we shall be fully responsible for the correctness of contents
                                         in the Company’s Annual Report.

                                 This statement is hereby made in all truthfulness.



                                            Surabaya, March 12, 2025




                                      The Board of Commissioners,




               Hermanto Tanoko                                   Mohammad Noor Rachman Soejoeti
              President Commissioner                                       Independent Commissioner



                                         The Board of Directors,




                Wijono Tanoko                                                   Ruslan Tanoko
                 President Director                                           Vice President Director




 Robert Christian Tanoko                    Kurnia Hadi Sinanto                        Angelica Tanisia Jozar
            Director                                 Director                                     Director




                                                                                                                    197
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This page is intentionally left blank.
Page 201
    PT AVIA AVIAN TBK
  DAN ENTITAS ANAKNYA/
   AND ITS SUBSIDIARIES
LAPORAN KEUANGAN KONSOLIDASIAN
    TANGGAL 31 DESEMBER 2024
SERTA UNTUK TAHUN YANG BERAKHIR
     PADA TANGGAL TERSEBUT
 DAN LAPORAN AUDITOR INDEPENDEN

CONSOLIDATED FINANCIAL STATEMENTS
       AS OF DECEMBER 31, 2024
   AND FOR THE YEAR THEN ENDED
 AND INDEPENDENT AUDITOR’S REPORT
Page 202
                                                               The original consolidated financial statements included herein are in
                                                                                                          the Indonesian language.

                     PT AVIA AVIAN TBK
                   DAN ENTITAS ANAKNYA                                         PT AVIA AVIAN TBK
             LAPORAN KEUANGAN KONSOLIDASIAN                                   AND ITS SUBSIDIARIES
                 TANGGAL 31 DESEMBER 2024                             CONSOLIDATED FINANCIAL STATEMENTS
             SERTA UNTUK TAHUN YANG BERAKHIR                                 AS OF DECEMBER 31, 2024
                  PADA TANGGAL TERSEBUT                                  AND FOR THE YEAR THEN ENDED
             DAN LAPORAN AUDITOR INDEPENDEN                           WITH INDEPENDENT AUDITOR’S REPORT




                                               Halaman/Pages

Daftar isi                                                                                                   Table of Contents

Surat Pernyataan Direksi                                                                            Directors’ Statement Letter

Laporan Auditor Independen                                                                        Independent Auditor’s Report

Laporan Posisi Keuangan Konsolidasian              1-3                         Consolidated Statement of Financial Position


Laporan Laba Rugi dan Penghasilan                                       Consolidated Statement of Profit or Loss and Other
   Komprehensif Lain Konsolidasian                 4-5                                       Comprehensive Income

Laporan Perubahan Ekuitas Konsolidasian              6                         Consolidated Statement of Changes in Equity

Laporan Arus Kas Konsolidasian                     7-8                                Consolidated Statement of Cash Flows

Catatan atas Laporan Keuangan Konsolidasian        9 - 94                   Notes to the Consolidated Financial Statements
Page 203

          
Page 204
                                                                  The original report included herein is in the Indonesian Language.


Laporan Auditor Independen                                   Independent Auditor’s Report

Laporan No. 00032/2.0851/AU.1/04/0453-1/1/II/2025            Report No. 00032/2.0851/AU.1/04/0453-1/1/II/2025

Pemegang Saham, Dewan Komisaris dan Direksi                  The Shareholders,        Boards       of   Commissioners          and
                                                             Directors

PT AVIA AVIAN Tbk                                            PT AVIA AVIAN Tbk

Opini                                                        Opinion

Kami telah mengaudit laporan keuangan konsolidasian          We have audited the consolidated financial statements of
PT Avia Avian Tbk dan Entitas Anaknya (“Grup”), yang         PT Avia Avian Tbk and its Subsidiaries (the “Group”),
terdiri dari laporan posisi keuangan konsolidasian tanggal   which comprise the consolidated statement of financial
31 Desember 2024, serta laporan laba rugi dan                position as of December 31, 2024, and the consolidated
penghasilan komprehensif lain konsolidasian, laporan         statements of profit or loss and other comprehensive
perubahan ekuitas konsolidasian, dan laporan arus kas        income, consolidated statement of changes in equity and
konsolidasian untuk tahun yang berakhir pada tanggal         consolidated statement of cash flows for the year then
tersebut, serta catatan atas laporan keuangan                ended, and notes to the consolidated financial
konsolidasian, termasuk informasi kebijakan akuntansi        statements, including material accounting policy
material.                                                    information.

Menurut opini kami, laporan keuangan konsolidasian           In our opinion, the accompanying consolidated financial
terlampir menyajikan secara wajar, dalam semua hal yang      statements present fairly, in all material respects, the
material, posisi keuangan konsolidasian Grup tanggal         consolidated financial position of the Group as of
31 Desember 2024, serta kinerja keuangan konsolidasian       December 31, 2024, and its consolidated financial
dan arus kas konsolidasiannya untuk tahun yang berakhir      performance and its consolidated cash flows for the year
pada tanggal tersebut, sesuai dengan Standar Akuntansi       then ended, in accordance with Indonesian Financial
Keuangan di Indonesia.                                       Accounting Standards.

Basis Opini                                                  Basis for Opinion

Kami melaksanakan audit kami berdasarkan Standar             We conducted our audit in accordance with Standards
Audit yang ditetapkan oleh Institut Akuntan Publik           on Auditing established by the Indonesian Institute of
Indonesia. Tanggung jawab kami menurut standar               Certified Public Accountants. Our responsibilities under
tersebut diuraikan lebih lanjut dalam paragraf Tanggung      those standards are further described in the Auditor’s
Jawab Auditor terhadap Audit atas Laporan Keuangan           Responsibilities for the Audit of the Consolidated
Konsolidasian pada laporan kami. Kami independen             Financial Statements paragraph of our report. We are
terhadap Grup berdasarkan ketentuan etika yang relevan       independent of the Group in accordance with the ethical
dalam audit kami atas laporan keuangan konsolidasian di      requirements that are relevant to our audit of the
Indonesia, dan kami telah memenuhi tanggung jawab            consolidated financial statements in Indonesia, and we
etika lainnya berdasarkan ketentuan tersebut. Kami yakin     have fulfilled our other ethical responsibilities in
bahwa bukti audit yang telah kami peroleh adalah cukup       accordance with these requirements. We believe that the
dan tepat untuk menyediakan suatu basis bagi opini audit     audit evidence we have obtained is sufficient and
kami.                                                        appropriate to provide a basis for our opinion.

Hal Audit Utama                                              Key Audit Matters

Hal audit utama adalah hal-hal yang, menurut                 Key audit matters are those matters that, in our
pertimbangan profesional kami, merupakan hal yang            professional judgment, were of most significance in our
paling signifikan dalam audit kami atas laporan keuangan     audit of the consolidated financial statements of the
konsolidasian periode kini. Hal-hal tersebut disampaikan     current period. These matters were addressed in the
dalam konteks audit kami atas laporan keuangan               context of our audit of the consolidated financial
konsolidasian     secara    keseluruhan,    dan    dalam     statements as a whole, and in forming our opinion
merumuskan opini kami atas laporan keuangan                  thereon, and we do not provide a separate opinion on
konsolidasian terkait, kami tidak menyatakan suatu opini     these matters.
terpisah atas hal audit utama tersebut.
Page 205
                                                                 The original report included herein is in the Indonesian Language.


Estimasi atas Beban Akrual Pemasaran dan Promosi           Estimates     for   Accrued       Marketing       and     Promotion
                                                           Expenses

Lihat Catatan 3t “Informasi Kebijakan Akuntansi yang       Refer to Note 3t “Material Accounting Policy Information -
Material - Akrual dan provisi”, Catatan 3v “Informasi      Accruals and provisions”, Note 3v “Material Accounting
Kebijakan Akuntansi yang Material - Pengakuan              Policy Information - Revenue and expense recognition -
pendapatan dan beban - Program loyalitas pelanggan”,       Customer loyalty programme”, Note 4 “Critical
Catatan 4 “Pertimbangan Akuntansi Penting dan Sumber       Accounting Judgments and Key Sources of Estimation
Utama Ketidakpastian Estimasi”, dan Catatan 15 “Beban      Uncertainty”, and Note 15 “Accrued Expenses” to the
Akrual” atas laporan keuangan konsolidasian.               consolidated financial statements.

Pada tanggal 31 Desember 2024, Grup mencatat beban         As of December 31, 2024, the Group recorded accrued
akrual atas pemasaran dan promosi sebesar                  promotion and marketing expenses amounting to
Rp 187.362 juta pada laporan posisi keuangan               Rp 187,362 million in the consolidated statement of
konsolidasian. Akrual tersebut adalah sehubungan           financial position. The accrual is in relation to sales
dengan berbagai skema tetap dan variabel atas promosi      promotion schemes given to customers, which consisted
penjualan yang diberikan kepada pelanggan.                 of various fixed and variable schemes.

Grup menggunakan asumsi dan pertimbangan yang              The Group exercised significant assumptions and
signifikan untuk mengestimasi jumlah beban akrual          judgments to estimate the amount of marketing and
pemasaran dan promosi pada tanggal 31 Desember             promotion accruals as of December 31, 2024. The key
2024. Asumsi-asumsi utama dalam penentuan beban            assumptions in determining the accrued marketing and
akrual pemasaran dan promosi adalah harga barang           promotion expenses were price of the promotional goods
promosi dan estimasi pencapaian penjualan, serta           and estimated sales achievement, as well as evaluating
mengevaluasi hasil historis realisasi promosi penjualan.   historical results of sales promotion realization.
Ketidakpastian muncul sehubungan dengan harga barang       Uncertainties exist with respect to price of the
promosi dan jumlah aktual pencapaian penjualan, yang       promotional goods and the actual sales achievement,
mungkin berbeda dengan estimasi.                           which may be different from the estimation.

Kami menetapkan area ini sebagai hal audit utama           We determined this area as a key audit matter due to the
dikarenakan adanya risiko bawaan terkait ketidakpastian    inherent risk of uncertainties and significant judgements
dan terdapat pertimbangan signifikan yang dilakukan oleh   in determining the amount of the accrued marketing and
manajemen dalam menentukan estimasi beban akrual           promotion expenses at the end of the year.
pemasaran dan promosi pada akhir tahun.

Bagaimana audit kami merespons Hal Audit Utama             How our audit addressed the Key Audit Matters

•   Kami memperoleh pemahaman tentang metodologi           •   We obtained an understanding of the methodologies
    yang digunakan oleh Grup untuk memperkirakan               used by the Group to estimate the accrual of
    beban akrual pemasaran dan promosi.                        marketing and promotion expenses.

•   Kami memperoleh rincian pemasaran dan promosi          •   We obtained the marketing and promotion listing
    dan menguji kelengkapan serta akurasi data input,          and tested the completeness and accuracy of data
    dasar, dan asumsi yang digunakan oleh Grup dalam           inputs, basis and assumptions used by the Group in
    perhitungan akrual untuk pemasaran dan promosi.            the computation of accrual for marketing and
                                                               promotion.

•   Kami mengevaluasi perhitungan Grup atas beban          •   We evaluated the Group’s calculation of accrued
    akrual pemasaran dan promosi dengan menguji,               marketing and promotion expenses by assessing, on
    secara sampel, kecukupan saldo akrual     dan              a sampling basis, the adequacy of accrued balances
    perhitungan mereka.
                                                               and their calculation.
•   Kami menguji realisasi beban akrual pemasaran dan      •   We tested the realization of the accrued marketing
    promosi yang dibuat pada tahun sebelumnya dan              and promotion expenses made in prior year and
    tahun berjalan dengan memeriksa ke dokumen                 during the year, by checking to supporting
    pendukung yang relevan, secara sampel.                     documents on a sample basis.

•   Kami mengevaluasi klasifikasi beban pemasaran dan      •   We evaluated the classification of marketing and
    promosi dalam laporan laba rugi dan penghasilan            promotion expenses in the consolidated statement
    komprehensif lain konsolidasian untuk setiap skema         of profit or loss and other comprehensive income for
    pemasaran dan promosi.                                     each of the marketing and promotion schemes.
Page 206
                                                                   The original report included herein is in the Indonesian Language.


Hal Lain                                                     Other Matter

Laporan     keuangan      konsolidasian    Grup    tanggal   The consolidated financial statements of the Group as of
31 Desember 2023 dan untuk tahun yang berakhir pada          December 31, 2023 and for the year then ended were
tanggal tersebut diaudit oleh auditor independen lain yang   audited by another independent auditor who expressed
menyatakan opini tanpa modifikasian atas laporan             an unmodified opinion on those consolidated financial
keuangan     konsolidasian     tersebut    pada    tanggal   statements on February 27, 2024.
27 Februari 2024.

Informasi Lain                                               Other Information

Manajemen bertanggung jawab atas informasi lain.             Management is responsible for the other information.
Informasi lain terdiri dari informasi yang tercantum dalam   The other information comprises the information included
laporan tahunan pada tanggal 31 Desember 2024 dan            in the annual report as of December 31, 2024 and for the
untuk tahun yang berakhir pada tanggal tersebut, tetapi      year then ended, but does not include the consolidated
tidak mencantumkan laporan keuangan konsolidasian dan        financial statements and our auditor’s report thereon.
laporan auditor kami. Laporan tahunan diharapkan akan        The annual report is expected to be made available to us
tersedia bagi kami setelah tanggal laporan auditor ini.      after the date of this auditor's report.

Opini kami atas laporan keuangan konsolidasian tidak         Our opinion on the consolidated financial statements
mencakup informasi lain, dan oleh karena itu, kami tidak     does not cover the other information, and accordingly,
menyatakan bentuk keyakinan apapun atas informasi lain       we will not express any form of assurance conclusion
tersebut.                                                    thereon.

Sehubungan dengan audit kami atas laporan keuangan           In connection with our audit of the consolidated financial
konsolidasian, tanggung jawab kami adalah untuk              statements, our responsibility is to read the other
membaca informasi lain yang teridentifikasi di atas, jika    information identified above when it becomes available
tersedia       dan,      dalam       melaksanakannya,        and, in doing so, consider whether the other information
mempertimbangkan apakah informasi lain mengandung            is materially inconsistent with the consolidated financial
ketidakkonsistensian material dengan laporan keuangan        statements or our knowledge obtained in the audit, or
konsolidasian atau pemahaman yang kami peroleh               otherwise appears to be materially misstated.
selama audit, atau mengandung kesalahan penyajian
material.

Ketika kami membaca laporan tahunan, jika kami               When we read the annual report, if we conclude that
menyimpulkan bahwa terdapat suatu kesalahan penyajian        there is a material misstatement therein, we are required
material di dalamnya, kami diharuskan untuk                  to communicate the matter to those charged with
mengomunikasikan hal tersebut kepada pihak yang              governance and take appropriate actions in accordance
bertanggung jawab atas tata kelola dan mengambil             with Standards on Auditing established by the
tindakan tepat berdasarkan Standar Audit yang ditetapkan     Indonesian Institute of Certified Public Accountants.
oleh Institut Akuntan Publik Indonesia.

Tanggung Jawab Manajemen dan Pihak yang                      Responsibilities of Management and Those Charged
Bertanggung Jawab atas Tata Kelola terhadap                  with Governance for the Consolidated Financial
Laporan Keuangan Konsolidasian                               Statements

Manajemen bertanggung jawab atas penyusunan dan              Management is responsible for the preparation and fair
penyajian wajar laporan keuangan konsolidasian tersebut      presentation of the consolidated financial statements in
sesuai dengan Standar Akuntansi Keuangan di Indonesia,       accordance with Indonesian Financial Accounting
dan atas pengendalian internal yang dianggap perlu oleh      Standards, and for such internal control as management
manajemen untuk memungkinkan penyusunan laporan              determines is necessary to enable the preparation of
keuangan konsolidasian yang bebas dari kesalahan             consolidated financial statements that are free from
penyajian material, baik yang disebabkan oleh                material misstatement, whether due to fraud or error.
kecurangan maupun kesalahan.
Page 207
                                                                   The original report included herein is in the Indonesian Language.


Dalam penyusunan laporan keuangan konsolidasian,            In preparing the consolidated financial statements,
manajemen     bertanggung    jawab     untuk    menilai     management is responsible for assessing the Group’s
kemampuan       Grup      dalam      mempertahankan         ability to continue as a going concern, disclosing, as
kelangsungan usahanya, mengungkapkan, sesuai                applicable, matters related to going concern, and using
dengan kondisinya, hal-hal yang berkaitan dengan            the going concern basis of accounting, unless
kelangsungan usaha, dan menggunakan basis akuntansi         management either intends to liquidate the Group or to
kelangsungan usaha, kecuali manajemen memiliki              cease its operations, or has no realistic alternative but to
intensi untuk melikuidasi Grup atau menghentikan            do so.
operasinya atau tidak memiliki alternatif yang realistis
selain melaksanakannya.

Pihak yang bertanggung jawab atas tata kelola               Those charged with governance are responsible for
bertanggung jawab untuk mengawasi proses pelaporan          overseeing the Group’s financial reporting process.
keuangan Grup.

Tanggung Jawab Auditor terhadap             Audit   atas    Auditor’s Responsibilities for the Audit of the
Laporan Keuangan Konsolidasian                              Consolidated Financial Statements

Tujuan kami adalah untuk memeroleh keyakinan                Our objectives are to obtain reasonable assurance about
memadai       tentang   apakah     laporan    keuangan      whether the consolidated financial statements as a whole
konsolidasian secara keseluruhan bebas dari kesalahan       are free from material misstatement, whether due to fraud
penyajian material, baik yang disebabkan oleh               or error, and to issue an auditor’s report that includes our
kecurangan maupun kesalahan, dan untuk menerbitkan          opinion. Reasonable assurance is a high level of
laporan auditor yang mencakup opini kami. Keyakinan         assurance, but is not a guarantee that an audit conducted
memadai merupakan suatu tingkat keyakinan tinggi,           in accordance with Standards on Auditing will always
namun bukan merupakan suatu jaminan bahwa audit             detect a material misstatement when it exists.
yang dilaksanakan berdasarkan Standar Audit akan            Misstatements can arise from fraud or error and are
selalu mendeteksi kesalahan penyajian material ketika       considered material if, individually or in the aggregate,
hal tersebut ada. Kesalahan penyajian dapat disebabkan      they could reasonably be expected to influence the
oleh kecurangan maupun kesalahan dan dianggap               economic decisions of users taken on the basis of these
material jika, baik secara individual maupun secara         consolidated financial statements.
agregat, dapat diekspektasikan secara wajar akan
memengaruhi keputusan ekonomi yang diambil oleh
pengguna berdasarkan laporan keuangan konsolidasian
tersebut.

Sebagai bagian dari suatu audit berdasarkan Standar         As part of an audit in accordance with Standards on
Audit, kami menerapkan pertimbangan profesional dan         Auditing, we exercise professional judgment and maintain
mempertahankan skeptisisme profesional selama audit.        professional skepticism throughout the audit. We also:
Kami juga:

•   Mengidentifikasi dan menilai risiko kesalahan           • Identify and assess the risks of material misstatement
    penyajian material dalam laporan keuangan                 of the consolidated financial statements, whether due
    konsolidasian,    baik    yang    disebabkan     oleh     to fraud or error, design and perform audit procedures
    kecurangan maupun kesalahan, mendesain dan                responsive to those risks, and obtain audit evidence
    melaksanakan prosedur audit yang responsif                that is sufficient and appropriate to provide a basis for
    terhadap risiko tersebut, serta memeroleh bukti audit     our opinion. The risk of not detecting a material
    yang cukup dan tepat untuk menyediakan basis bagi         misstatement resulting from fraud is higher than for
    opini kami. Risiko tidak terdeteksinya kesalahan          one resulting from error, as fraud may involve
    penyajian material yang disebabkan oleh kecurangan        collusion,       forgery,    intentional      omissions,
    lebih tinggi dari yang disebabkan oleh kesalahan,         misrepresentations, or the override of internal control.
    karena kecurangan dapat melibatkan kolusi,
    pemalsuan,      penghilangan      secara    sengaja,
    pernyataan salah, atau pengabaian pengendalian
    internal.

•   Memeroleh suatu pemahaman tentang pengendalian          • Obtain an understanding of internal control relevant to
    internal yang relevan dengan audit untuk mendesain        the audit in order to design audit procedures that are
    prosedur audit yang tepat sesuai dengan kondisinya,       appropriate in the circumstances, but not for the
    tetapi bukan untuk tujuan menyatakan opini atas           purpose of expressing an opinion on the effectiveness
    keefektivitasan pengendalian internal Grup.               of the Group’s internal control.
Page 208
                                                                 The original report included herein is in the Indonesian Language.


•   Mengevaluasi ketepatan kebijakan akuntansi yang       • Evaluate the appropriateness of accounting policies
    digunakan serta kewajaran estimasi akuntansi dan        used and the reasonableness of accounting estimates
    pengungkapan terkait yang dibuat oleh manajemen.        and related disclosures made by management.

•   Menyimpulkan     ketepatan    penggunaan     basis    • Conclude on the appropriateness of management's
    akuntansi kelangsungan usaha oleh manajemen dan,        use of the going concern basis of accounting and,
    berdasarkan bukti audit yang diperoleh, apakah          based on the audit evidence obtained, whether a
    terdapat suatu ketidakpastian material yang terkait     material uncertainty exists related to events or
    dengan peristiwa atau kondisi yang dapat                conditions that may cast significant doubt on the
    menyebabkan keraguan signifikan atas kemampuan          Group’s ability to continue as a going concern. If we
    Grup     untuk   mempertahankan      kelangsungan       conclude that a material uncertainty exists, we are
    usahanya. Ketika kami menyimpulkan bahwa                required to draw attention in our auditor's report to the
    terdapat suatu ketidakpastian material, kami            related disclosures in the consolidated financial
    diharuskan untuk menarik perhatian dalam laporan        statements or, if such disclosures are inadequate, to
    auditor kami ke pengungkapan terkait dalam laporan      modify our opinion. Our conclusions are based on the
    keuangan konsolidasian atau, jika pengungkapan          audit evidence obtained up to the date of our auditor's
    tersebut tidak memadai, harus menentukan apakah         report. However, future events or conditions may
    perlu untuk memodifikasi opini kami. Kesimpulan         cause the Group to cease to continue as a going
    kami didasarkan pada bukti audit yang diperoleh         concern.
    hingga tanggal laporan auditor kami. Namun,
    peristiwa atau kondisi masa depan dapat
    menyebabkan Grup tidak dapat mempertahankan
    kelangsungan usaha.

•   Mengevaluasi penyajian, struktur, dan isi laporan     • Evaluate the overall presentation, structure and
    keuangan     konsolidasian secara    keseluruhan,       content of the consolidated financial statements,
    termasuk pengungkapannya, dan apakah laporan            including the disclosures, and whether the
    keuangan konsolidasian mencerminkan transaksi           consolidated financial statements represent the
    dan peristiwa yang mendasarinya dengan suatu cara       underlying transactions and events in a manner that
    yang mencapai penyajian wajar.                          achieves fair presentation.

•   Memeroleh bukti audit yang cukup dan tepat terkait    • Obtain sufficient appropriate audit evidence regarding
    informasi keuangan entitas atau aktivitas bisnis        the financial information of the entities or business
    dalam Grup untuk menyatakan opini atas laporan          activities within the Group to express an opinion on the
    keuangan konsolidasian. Kami bertanggung jawab          consolidated financial statements. We are responsible
    atas arahan, supervisi, dan pelaksanaan audit Grup.     for the direction, supervision and performance of the
    Kami tetap bertanggung jawab sepenuhnya atas            Group audit. We remain solely responsible for our
    opini audit kami.                                       audit opinion.

Kami      mengomunikasikan       kepada  pihak    yang    We communicate with those charged with governance
bertanggung jawab atas tata kelola mengenai, antara       regarding, among other matters, the planned scope and
lain, ruang lingkup dan saat yang direncanakan atas       timing of the audit and significant audit findings, including
audit, serta temuan audit signifikan, termasuk setiap     any significant deficiencies in internal control that we
defisiensi signifikan dalam pengendalian internal yang    identify during our audit.
teridentifikasi oleh kami selama audit.

Kami juga memberikan suatu pernyataan kepada pihak        We also provide those charged with governance with a
yang bertanggung jawab atas tata kelola bahwa kami        statement that we have complied with relevant ethical
telah mematuhi ketentuan etika yang relevan mengenai      requirements   regarding     independence,      and    to
independensi,    dan      mengomunikasikan      seluruh   communicate with them all relationships and other matters
hubungan, serta hal-hal lain yang dianggap secara wajar   that may reasonably be thought to bear on our
berpengaruh terhadap independensi kami, dan, jika         independence, and where applicable, related safeguards.
relevan, pengamanan terkait.
Page 209
                                                                    The original report included herein is in the Indonesian Language.


Dari hal-hal yang dikomunikasikan kepada pihak yang          From the matters communicated with those charged with
bertanggung jawab atas tata kelola, kami menentukan          governance, we determine those matters that were of
hal-hal tersebut yang paling signifikan dalam audit          most significance in the audit of the consolidated financial
atas laporan keuangan konsolidasian periode kini dan         statements of the current period and are therefore the key
oleh karenanya menjadi hal audit utama. Kami                 audit matters. We describe these matters in our auditor’s
menguraikan hal audit utama dalam laporan auditor            report unless law or regulation precludes public disclosure
kami,    kecuali    peraturan   perundang-undangan           about the matter or when, in extremely rare
melarang pengungkapan publik tentang hal tersebut            circumstances, we determine that a matter should not be
atau ketika, dalam kondisi yang sangat jarang terjadi,       communicated in our report because the adverse
kami menentukan bahwa suatu hal tidak boleh                  consequences of doing so would reasonably be expected
dikomunikasikan dalam laporan kami karena                    to outweigh the public interest benefits of such
konsekuensi merugikan dari mengomunikasikan hal              communication.
tersebut akan diekspektasikan secara wajar melebihi
manfaat kepentingan publik atas komunikasi tersebut.



                                   Kantor Akuntan Publik/Registered Public Accountants
                                      TERAMIHARDJA, PRADHONO & CHANDRA




                                                  Agustina Felisia, CPA
                                  Izin Akuntan Publik/Public Accountant License No. 0453


24 Februari 2025                                                                                         February 24, 2025
Page 210
                                                                                                 The original consolidated financial statements included herein are in
                                                                                                                                            the Indonesian language.

                                 PT AVIA AVIAN Tbk                                                              PT AVIA AVIAN Tbk
                              DAN ENTITAS ANAKNYA                                                             AND ITS SUBSIDIARIES
                            LAPORAN POSISI KEUANGAN                                                       CONSOLIDATED STATEMENT OF
                                   KONSOLIDASIAN                                                               FINANCIAL POSITION
                             Tanggal 31 Desember 2024                                                         As of December 31, 2024
                           (Disajikan dalam jutaan Rupiah,                                                (Expressed in millions of Rupiah,
                               kecuali dinyatakan lain)                                                       unless otherwise stated)




                                                  Catatan/
                                                   Notes                      2024                     2023*)

ASET                                                                                                                                                                ASSETS

ASET LANCAR                                                                                                                                    CURRENT ASSETS
Kas dan setara kas                                         3j, 5                     2,329,491              1,230,544                     Cash and cash equivalents
Kas di bank dan deposito                                                                                                                     Restricted cash in bank
    yang dibatasi penggunaannya                                                          3,000                  2,100                           and time deposits
Investasi                                                 3i, 10                     2,952,900              4,754,087                                    Investments
Piutang usaha                                                                                                                                     Trade receivables
     Pihak berelasi                                    3k, 6, 7                         16,319                 14,018                              Related parties
     Pihak ketiga                                        3k, 6                       1,445,418              1,229,025                                 Third parties
Piutang lain-lain                                                                                                                                  Other receivables
     Pihak berelasi                                    3k, 7, 8                         83,283                 56,538                              Related parties
     Pihak ketiga                                        3k, 8                          45,420                 49,331                                 Third parties
Persediaan                                                3l, 9                      1,558,203              1,519,549                                     Inventories
Hak retur aset                                              3v                          19,333                 16,426                          Right of return assets
Uang muka pemasok                                                                        5,791                  7,734                         Advances to suppliers
Beban dibayar dimuka                                                                    14,456                 11,381                             Prepaid expenses
Pajak dibayar dimuka                                    3w, 19                          19,748                 20,069                                  Prepaid taxes

Jumlah Aset Lancar                                                                   8,493,362              8,910,802                              Total Current Assets


ASET TIDAK LANCAR                                                                                                                          NON-CURRENT ASSETS
Properti investasi                                      3o, 11                         290,510                290,113                           Investment properties
Aset tetap - neto                                      3m, 12                        1,930,297              1,659,163                               Fixed assets - net
Aset hak-guna                                         3n, 7, 16                        180,949                150,551                              Right-of-use assets
Aset takberwujud                                             3p                         28,734                 25,808                                Intangible assets
Investasi pada ventura bersama                           3f, 13                         19,976                 17,298                      Investment in joint venture
Aset pajak tangguhan                                    3w, 19                          36,144                 43,878                             Deferred tax assets
                                                                                                                                                  Estimated claims for
Taksiran klaim pajak penghasilan                        3w, 19                         29,432                   29,432                           income tax refund
Aset tidak lancar lainnya                                                              51,571                   39,942                       Other non-current assets

Jumlah Aset Tidak Lancar                                                             2,567,613              2,256,185                        Total Non-Current Assets


JUMLAH ASET                                                                      11,060,975               11,166,987                                   TOTAL ASSETS


*) Setelah direklasifikasi (Catatan 36)                                                                                                                 *) As reclassified (Note 36)




       Catatan atas Laporan Keuangan Konsolidasian terlampir merupakan bagian yang                 The accompanying Notes to the Consolidated Financial Statements
                    tidak terpisahkan dari laporan keuangan konsolidasian                            form an integral part of these consolidated financial statements


                                                                                         1
Page 211
                                                                                              The original consolidated financial statements included herein are in
                                                                                                                                         the Indonesian language.

                         PT AVIA AVIAN Tbk                                                                   PT AVIA AVIAN Tbk
                      DAN ENTITAS ANAKNYA                                                                  AND ITS SUBSIDIARIES
                    LAPORAN POSISI KEUANGAN                                                            CONSOLIDATED STATEMENT OF
                     KONSOLIDASIAN (lanjutan)                                                          FINANCIAL POSITION (continued)
                     Tanggal 31 Desember 2024                                                              As of December 31, 2024
                   (Disajikan dalam jutaan Rupiah,                                                     (Expressed in millions of Rupiah,
                       kecuali dinyatakan lain)                                                            unless otherwise stated)



                                               Catatan/
                                                Notes                      2024                      2023
LIABILITAS DAN EKUITAS                                                                                                                 LIABILITIES AND EQUITY

LIABILITAS                                                                                                                                                LIABILITIES

LIABILITAS JANGKA PENDEK                                                                                                                CURRENT LIABILITIES
Pinjaman bank jangka pendek                           3u, 17                         9,189                    5,222                        Short-term bank loans
Utang usaha                                                                                                                                       Trade payables
    Pihak berelasi                                 3r, 7, 14                       362,941                 279,321                              Related parties
    Pihak ketiga                                      3r, 14                       424,760                 371,337                                 Third parties
Utang lain-lain                                                                                                                                    Other payables
    Pihak berelasi                                      3r, 7                          487                      121                             Related parties
    Pihak ketiga                                           3r                       24,136                   30,450                                Third parties
Pendapatan diterima dimuka                                                                                                                    Unearned revenue
    Pihak berelasi                                     3v, 7                         1,611                   1,802                              Related parties
    Pihak ketiga                                          3v                           599                     362                                 Third parties
Beban akrual                                          3t, 15                       252,661                 301,835                             Accrued expenses
Imbalan kerja jangka pendek                          3s, 18                        108,618                  97,052                  Short-term employee benefits
Utang pajak                                          3w, 19                         72,123                  52,584                                 Taxes payable
Uang jaminan pelanggan                                                               3,000                   2,100                           Customer guarantee
Provisi retur penjualan                                    3v                       26,683                  21,979                      Provision for sales return
Liabilitas sewa - bagian jangka                                                                                                                   Lease liabilities
    pendek                                         3n, 7, 16                        64,777                   10,965                            - current portion
Jumlah Liabilitas Jangka Pendek                                                   1,351,585              1,175,130                           Total Current Liabilities


LIABILITAS JANGKA PANJANG                                                                                                          NON-CURRENT LIABILITIES
Liabilitas sewa - bagian jangka                                                                                                     Lease liabilities - non-current
    panjang                                           3n, 16                        19,416                   15,725                                       portion
Liabilitas imbalan kerja                              3s, 18                        58,094                   54,643                   Employee benefit liabilities
Jumlah Liabilitas Jangka Panjang                                                    77,510                   70,368                   Total Non-Current Liabilities

Jumlah Liabilitas                                                                 1,429,095              1,245,498                                     Total Liabilities




    Catatan atas Laporan Keuangan Konsolidasian terlampir merupakan bagian yang                 The accompanying Notes to the Consolidated Financial Statements
                 tidak terpisahkan dari laporan keuangan konsolidasian                            form an integral part of these consolidated financial statements


                                                                                      2
Page 212
                                                                                              The original consolidated financial statements included herein are in
                                                                                                                                         the Indonesian language.

                        PT AVIA AVIAN Tbk                                                                    PT AVIA AVIAN TBK
                     DAN ENTITAS ANAKNYA                                                                   AND ITS SUBSIDIARIES
                   LAPORAN POSISI KEUANGAN                                                             CONSOLIDATED STATEMENT OF
                    KONSOLIDASIAN (lanjutan)                                                           FINANCIAL POSITION (continued)
                    Tanggal 31 Desember 2024                                                               As of December 31, 2024
                  (Disajikan dalam jutaan Rupiah,                                                      (Expressed in millions of Rupiah,
                      kecuali dinyatakan lain)                                                             unless otherwise stated)


                                              Catatan/
                                               Notes                      2024                       2023

EKUITAS                                                                                                                                                 EQUITY
Ekuitas yang Dapat                                                                                                                  Equity Attributable to the
   Diatribusikan kepada                                                                                                               Equity Holders of the
   Pemilik Entitas Induk                                                                                                                    Parent Company
Modal saham - nilai nominal                                                                                                     Share capital - par value Rp 10
   Rp 10 (nilai penuh) per saham                                                                                                      (full amount) per share
   Modal dasar - 200.000.000.000                                                                                               Authorised - 200,000,000,000
        saham                                                                                                                                        shares
   Modal ditempatkan dan disetor                                                                                                       Issued and fully paid -
        penuh - 61.953.555.600 saham                 3x, 20                        619,536                 619,536                 61,953,555,600 shares
Tambahan modal disetor                               3e, 21                      7,793,218               7,793,218                     Additional paid-in capital
Saham treasuri                                       3x, 20                       (574,552)                (16,369)                            Treasury shares
Surplus revaluasi aset tetap                                                       229,406                 229,406           Revaluation surplus of fixed assets
Bagian penghasilan komprehensif                                                                                                  Share of other comprehensive
   lain dari ventura bersama                                                             85                       85                  income of joint venture
Perubahan nilai wajar atas                                                                                                                       Changes in fair
   investasi pada surat                                                                                                                   value of investment
   utang negara                                           10                      (103,357)                (56,408)                     in government bonds
Keuntungan pengukuran kembali                                                                                                          Remeasurement gain on
   liabilitas imbalan kerja                                                          9,880                    9,921               employee benefit liabilities
Saldo laba                                                                                                                                    Retained earnings
   Telah ditentukan penggunaannya                         22                       124,000                 124,000                              Appropriated
   Belum ditentukan penggunaannya                                                1,527,177               1,210,978                            Unappropriated
Sub-Jumlah                                                                       9,625,393               9,914,367                                            Sub-Total

Kepentingan Non-Pengendali                                3d                         6,487                    7,122                       Non-Controlling Interests

Jumlah Ekuitas                                                                   9,631,880               9,921,489                                         Total Equity
JUMLAH LIABILITAS DAN EKUITAS                                                11,060,975                11,166,987           TOTAL LIABILlTlES AND EQUITY




   Catatan atas Laporan Keuangan Konsolidasian terlampir merupakan bagian yang                  The accompanying Notes to the Consolidated Financial Statements
                tidak terpisahkan dari laporan keuangan konsolidasian                             form an integral part of these consolidated financial statements


                                                                                     3
Page 213
                                                                                           The original consolidated financial statements included herein are in
                                                                                                                                      the Indonesian language.

                       PT AVIA AVIAN Tbk                                                                    PT AVIA AVIAN Tbk
                    DAN ENTITAS ANAKNYA                                                                   AND ITS SUBSIDIARIES
                      LAPORAN LABA RUGI                                                              CONSOLIDATED STATEMENT OF
            DAN PENGHASILAN KOMPREHENSIF LAIN                                                              PROFIT OR LOSS AND
                         KONSOLIDASIAN                                                               OTHER COMPREHENSIVE INCOME
             Untuk Tahun yang Berakhir Pada Tanggal                                                         For the Year Ended
                        31 Desember 2024                                                                    December 31, 2024
                  (Disajikan dalam jutaan Rupiah,                                                     (Expressed in millions of Rupiah,
                      kecuali dinyatakan lain)                                                            unless otherwise stated)


                                           Catatan/
                                            Notes                      2024                       2023

PENJUALAN NETO                                 3v, 7, 25                      7,471,356               7,016,882                                  NET REVENUES

BEBAN POKOK PENJUALAN                          3v, 7, 26                  (4,130,606)                (3,833,546)                      COST OF GOODS SOLD

LABA BRUTO                                                                    3,340,750               3,183,336                                   GROSS PROFIT
BEBAN USAHA                                                                                                                          OPERATING EXPENSES
Beban penjualan                                   3v, 27                  (1,318,417)                (1,240,237)                              Selling expenses
Beban umum dan                                                                                                                       General and administrative
   administrasi                                   3v, 27                       (253,243)               (226,090)                                    expenses

Jumlah Beban Usaha                                                        (1,571,660)                (1,466,327)                      Total Operating Expenses

LABA USAHA                                                                    1,769,090               1,717,009                            OPERATING PROFIT


PENGHASILAN (BEBAN)
LAIN-LAIN                                                                                                                     OTHER INCOME (EXPENSES)
Pendapatan keuangan                                    28                      285,105                  286,259                              Finance income
Beban keuangan                                         29                       (2,539)                  (4,077)                            Finance charges
Bagian atas laba neto                                                                                                                    Share in net profit of
   ventura bersama                                    13                         2,678                       898                              joint venture
Pendapatan (beban) lain-lain - neto                7, 30                        14,260                    (7,946)              Other income (expenses) - net

LABA SEBELUM BEBAN                                                                                                                          PROFIT BEFORE
PAJAK PENGHASILAN                                                             2,068,594               1,992,143                        INCOME TAX EXPENSE

Beban pajak penghasilan                          3w, 19                        (404,895)               (349,047)                             Income tax expense
LABA TAHUN BERJALAN                                                           1,663,699               1,643,096                       PROFIT FOR THE YEAR

PENGHASILAN (RUGI)                                                                                                              OTHER COMPREHENSIVE
KOMPREHENSIF LAIN                                                                                                                          INCOME (LOSS)
Pos yang tidak akan                                                                                                                   Items that will not be
   direklasifikasi ke laba rugi:                                                                                           reclassified to profit or loss:
Surplus revaluasi aset tetap                           12                              -                   2,912          Revaluation surplus of fixed assets
Kerugian aktuarial dari liabilitas                                                                                                          Actuarial loss on
   atas imbalan kerja karyawan                   3s, 18                             (44)                  (4,330)                        employee benefit
Pajak tangguhan terkait                          3w, 19                              10                      953                        Related deferred tax

Sub-jumlah                                                                          (34)                     (465)                                          Sub-total
Pos yang akan direklasifikasi                                                                                                    Item that will be reclassified
   ke laba rugi:                                                                                                                           to profit or loss:
Perubahan nilai wajar                                                                                                                    Changes in fair value
   atas investasi pada                                                                                                                       of investment in
   surat utang negara                                  10                      (46,949)                   81,868                         government bonds

Penghasilan (rugi) komprehensif lain -                                                                                           Other comprehensive income
   setelah pajak                                                               (46,983)                   81,403                          (loss) - net of tax
JUMLAH PENGHASILAN                                                                                                                 TOTAL COMPREHENSIVE
KOMPREHENSIF TAHUN BERJALAN                                                   1,616,716               1,724,499                     INCOME FOR THE YEAR




Catatan atas Laporan Keuangan Konsolidasian terlampir merupakan bagian yang                  The accompanying Notes to the Consolidated Financial Statements
             tidak terpisahkan dari laporan keuangan konsolidasian                             form an integral part of these consolidated financial statements


                                                                                   4
Page 214
                                                                                           The original consolidated financial statements included herein are in
                                                                                                                                      the Indonesian language.

                       PT AVIA AVIAN Tbk                                                                PT AVIA AVIAN Tbk
                    DAN ENTITAS ANAKNYA                                                               AND ITS SUBSIDIARIES
                      LAPORAN LABA RUGI                                                           CONSOLIDATED STATEMENT OF
            DAN PENGHASILAN KOMPREHENSIF LAIN                                                          PROFIT OR LOSS AND
                   KONSOLIDASIAN (lanjutan)                                                  OTHER COMPREHENSIVE INCOME (continued)
             Untuk Tahun yang Berakhir Pada Tanggal                                                     For the Year Ended
                        31 Desember 2024                                                                December 31, 2024
                  (Disajikan dalam jutaan Rupiah,                                                 (Expressed in millions of Rupiah,
                      kecuali dinyatakan lain)                                                        unless otherwise stated)


                                            Catatan/
                                             Notes                     2024                       2023

LABA TAHUN BERJALAN
   YANG DAPAT                                                                                                                         PROFIT FOR THE YEAR
   DIATRIBUSIKAN KEPADA:                                                                                                               ATTRIBUTABLE TO:
                                                                                                                                         Equity Holders of the
Pemilik Entitas Induk                                                         1,664,341               1,642,166                           Parent Company
Kepentingan Non-Pengendali                             3d                          (642)                    930                       Non-Controlling Interests

JUMLAH                                                                        1,663,699               1,643,096                                               TOTAL

JUMLAH PENGHASILAN
   KOMPREHENSIF TAHUN                                                                                                              TOTAL COMPREHENSIVE
   BERJALAN YANG DAPAT                                                                                                            INCOME FOR THE YEAR
   DIATRIBUSIKAN KEPADA:                                                                                                             ATTRIBUTABLE TO:
                                                                                                                                        Equity Holders of the
Pemilik Entitas Induk                                                         1,617,351               1,723,608                          Parent Company
Kepentingan Non-Pengendali                             3d                          (635)                    891                      Non-Controlling Interests
JUMLAH                                                                        1,616,716               1,724,499                                               TOTAL

Laba per Saham Dasar dan                                                                                                    Basic and Diluted Earnings per
   Dilusian yang Dapat                                                                                                             Share Attributable to
   Diatribusikan kepada                                                                                                                Equity Holders of
   Pemilik Entitas Induk                          3z, 23                          27.16                    26.51                    the Parent Company




Catatan atas Laporan Keuangan Konsolidasian terlampir merupakan bagian yang                  The accompanying Notes to the Consolidated Financial Statements
             tidak terpisahkan dari laporan keuangan konsolidasian                             form an integral part of these consolidated financial statements


                                                                                   5
Page 215
                                                                                                                                                                                                                     The original consolidated financial statements included herein are in
                                                                                                                                                                                                                                                                the Indonesian language.

                                                  PT AVIA AVIAN Tbk                                                                                                                                                 PT AVIA AVIAN Tbk
                                               DAN ENTITAS ANAKNYA                                                                                                                                               AND ITS SUBSIDIARIES
                                  LAPORAN PERUBAHAN EKUITAS KONSOLIDASIAN                                                                                                               CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
                                        Untuk Tahun yang Berakhir Pada Tanggal                                                                                                                             For the Year Ended
                                                   31 Desember 2024                                                                                                                                        December 31, 2024
                                (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                                                                               (Expressed in millions of Rupiah, unless otherwise stated)


                                                                                              Ekuitas yang Dapat Diatribusikan kepada Pemilik Entitas Induk/
                                                                                              Equity Atributable to the Equity Holders of the Parent Company

                                                                                                                                           Perubahan
                                                                                                                                              Nilai
                                                                                                                                           Wajar atas       Keuntungan
                                                                                                                         Bagian dari    Investasi pada       (Kerugian)
                                                 Modal Saham                                           Surplus           Penghasilan      Surat Utang     Pengukuran
                                                  Ditempatkan                                         Revaluasi         Komprehensif        Negara/           Kembali                   Saldo Laba/
                                                  dan Disetor    Tambahan                                Aset              Lain dari        Changes           Liabilitas            Retained Earnings                            Kepentingan
                                                     Penuh/        Modal                                Tetap/         Ventura Bersama/      in Fair      Imbalan Kerja/                                                             Non-
                                                     Issued       Disetor/                           Revaluation        Share of Other      Value of      Remeasurement           Telah           Belum                          Pengendali/      Jumlah
                                                   and Fully     Additional                            Surplus         Comprehensive     Investment in     Gain or (Loss)      Ditentukan       Ditentukan                           Non-         Ekuitas/
                                      Catatan/        Paid        Paid-in         Saham Treasuri/      of Fixed           Income of       Goverment        on Employee       Penggunaannya/ Penggunaannya/     Sub-Jumlah/        Controlling      Total
                                       Notes     Share Capital    Capital         Treasury Shares      Assets           Joint Venture        Bonds        Benefit Liabilities Appropriated   Unappropriated     Sub-Total          Interests       Equity

Saldo 31 Desember 2022                                 619,536      7,793,218                   -        226,494                  85         (138,276 )          13,259            124,000        931,790         9,570,106             4,779      9,574,885     Balance as of December 31, 2022

Dividen                                     24               -                -                 -                  -                -               -                   -                -      (1,362,978 )     (1,362,978 )               -     (1,362,978 )                             Dividends
Penerbitan saham entitas anak                                                                                                                                                                                                                                    Issuance of a subsidiary’s shares to
  kepada kepentingan non-pengendali                          -                -                 -                  -                -               -                   -                -                -                  -          1,452          1,452           non-controlling interests

Pembelian saham treasuri                    20               -                -          (16,369 )                 -                -               -                   -                -                -         (16,369 )               -        (16,369 )           Purchase of treasure shares
Laba tahun berjalan                                          -                -                 -                  -                -               -                   -                -       1,642,166        1,642,166              930       1,643,096                       Profit for the year
Penghasilan komprehensif lain                                -                -                 -           2,912                   -          81,868             (3,338 )               -                -          81,442               (39 )       81,403            Other comprehensive income

Saldo 31 Desember 2023                                 619,536      7,793,218            (16,369 )       229,406                  85          (56,408 )           9,921            124,000       1,210,978        9,914,367             7,122      9,921,489     Balance as of December 31, 2023

Dividen                                     24               -                -                 -                  -                -               -                   -                -      (1,348,142 )     (1,348,142 )               -     (1,348,142 )                             Dividends
Pembelian saham treasuri                    20               -                -         (558,183 )                 -                -               -                   -                -                -        (558,183 )               -       (558,183 )           Purchase of treasure shares
Laba tahun berjalan                                          -                -                 -                  -                -               -                   -                -       1,664,341        1,664,341              (642 )    1,663,699                       Profit for the year
Rugi komprehensif lain                                       -                -                 -                  -                -         (46,949 )              (41 )               -                -         (46,990 )               7        (46,983 )             Other comprehensive loss

Saldo 31 Desember 2024                                 619,536      7,793,218           (574,552 )       229,406                  85         (103,357 )           9,880            124,000       1,527,177        9,625,393             6,487      9,631,880     Balance as of December 31, 2024




                 Catatan atas Laporan Keuangan Konsolidasian terlampir merupakan bagian yang tidak terpisahkan dari                                                          The accompanying Notes to the Consolidated Financial Statements form an integral part of
                                                 laporan keuangan konsolidasian                                                                                                                     these consolidated financial statements


                                                                                                                                                     6
Page 216
                                                                                           The original consolidated financial statements included herein are in
                                                                                                                                      the Indonesian language.


                           PT AVIA AVIAN Tbk                                                                PT AVIA AVIAN Tbk
                        DAN ENTITAS ANAKNYA                                                               AND ITS SUBSIDIARIES
                          LAPORAN ARUS KAS                                                            CONSOLIDATED STATEMENT OF
                            KONSOLIDASIAN                                                                      CASH FLOWS
                 Untuk Tahun yang Berakhir Pada Tanggal                                                     For the Year Ended
                            31 Desember 2024                                                                December 31, 2024
                     (Disajikan dalam jutaan Rupiah,                                                  (Expressed in millions of Rupiah,
                         kecuali dinyatakan lain)                                                         unless otherwise stated)

                                            Catatan/
                                             Notes                     2024                    2023*)


ARUS KAS DARI                                                                                                                          CASH FLOWS FROM
AKTIVITAS OPERASI                                                                                                                  OPERATING ACTIVITIES
Penerimaan kas dari pelanggan                                              7,229,124                6,850,984                   Cash receipts from customers
Pembayaran ke pemasok                                                     (4,625,552)              (4,341,998)                         Payments to suppliers
Pembayaran ke karyawan                                                      (779,291)                (707,405)                       Payments to employees
Kas yang diperoleh dari operasi                                               1,824,281             1,801,581                   Cash provided by operations
Penerimaan lain-lain                                                             31,003                12,664                                   Other receipts
Penerimaan penghasilan bunga                                                    291,459               308,589                     Receipts of finance income
Pembayaran pajak penghasilan                                                                                                   Payments of corporate income
   badan                                             19                        (380,615)             (482,000)                                      taxes

Kas Bersih yang Diperoleh dari                                                                                                          Net Cash Provided by
   Aktivitas Operasi                                                          1,766,128             1,640,834                          Operating Activities
ARUS KAS DARI                                                                                                                         CASH FLOWS FROM
AKTIVITAS INVESTASI                                                                                                               INVESTING ACTIVITIES
Penerimaan dari pelepasan                                                                                                        Proceeds from disposal of
   aset tetap                                        12                         11,156                  14,094                                fixed assets
Penerimaan dari penjualan investasi                                                                                      Proceeds from sale of investment
   pada surat utang negara                                                            -             1,128,447                       in government bonds
Penerimaan investasi jangka pendek                                            1,740,000                     -           Proceeds of short-term invesments
Penambahan investasi jangka pendek                                                    -            (1,740,000)          Additions of short-term investments
Pembelian aset tetap                                                           (438,716)             (246,181)                     Purchase of fixed assets
Perolehan aset hak-guna                                                         (39,600)              (69,588 )             Additions of right-of-use assets
Penambahan aset takberwujud                                                     (10,366)               (8,667)                Additions of intangible assets
Penambahan investasi pada                                                                                                         Additions of investment in
   reksa dana                                                                         -                (20,000)                              mutual funds
Penambahan investasi pada                                                                                                         Additions of investment in
   surat utang negara                                                                 -              (196,300)                         government bonds
Kas Bersih yang Diperoleh dari                                                                                                         Net Cash Provided by
   (Digunakan untuk)                                                                                                                             (Used in)
   Aktivitas Investasi                                                        1,262,474            (1,138,195)                         Investing Activities

 *) Setelah direklasifikasi (Catatan 36)                                                                                                        *) As reclassified (Note 36)




Catatan atas Laporan Keuangan Konsolidasian terlampir merupakan bagian yang                The accompanying Notes to the Consolidated Financial Statements
             tidak terpisahkan dari laporan keuangan konsolidasian                           form an integral part of these consolidated financial statements


                                                                                  7
Page 217
                                                                                           The original consolidated financial statements included herein are in
                                                                                                                                      the Indonesian language.


                           PT AVIA AVIAN Tbk                                                                PT AVIA AVIAN Tbk
                        DAN ENTITAS ANAKNYA                                                               AND ITS SUBSIDIARIES
                          LAPORAN ARUS KAS                                                            CONSOLIDATED STATEMENT OF
                       KONSOLIDASIAN (lanjutan)                                                          CASH FLOWS (continued)
                 Untuk Tahun yang Berakhir Pada Tanggal                                                     For the Year Ended
                            31 Desember 2024                                                                December 31, 2024
                     (Disajikan dalam jutaan Rupiah,                                                  (Expressed in millions of Rupiah,
                         kecuali dinyatakan lain)                                                         unless otherwise stated)

                                            Catatan/
                                             Notes                     2024                    2023*)


ARUS KAS DARI                                                                                                                          CASH FLOWS FROM
AKTIVITAS PENDANAAN                                                                                                                 FINANCING ACTIVITIES
Perolehan saham treasuri                             20                        (558,183)               (16,369)                Acquisition of treasury shares
Pembayaran liabilitas sewa                           16                         (24,758)               (58,836)                   Payments of lease liabilities
Pembayaran beban bunga                               29                          (2,539)                (4,077)                  Payment of interest expense
Penerbitan saham entitas anak                                                                                                Issuance of subsidiary’s shares
  kepada kepentingan non-pengendali                                                -                    1,452                   to non-controlling interests
Pembayaran dividen tunai                             24                   (1,348,142)              (1,362,978)                    Payment of cash dividends

Kas bersih yang Digunakan untuk                                                                                                            Net Cash Used in
   Aktivitas Pendanaan                                                    (1,933,622)              (1,440,808)                         Financing Activities
                                                                                                                             NET INCREASE (DECREASE)
KENAIKAN (PENURUNAN) BERSIH                                                                                                               IN CASH AND
KAS DAN SETARA KAS                                                            1,094,980              (938,169)                      CASH EQUIVALENTS

KAS DAN SETARA KAS                                                                                                     CASH AND CASH EQUIVALENTS
DAN CERUKAN                                                                                                               AND BANK OVERDRAFT AT
AWAL TAHUN                                                                    1,225,322             2,163,491                  BEGINNING OF YEAR

KAS DAN SETARA KAS                                                                                                     CASH AND CASH EQUIVALENTS
DAN CERUKAN                                                                                                               AND BANK OVERDRAFT AT
AKHIR TAHUN                                      5, 17                        2,320,302             1,225,322                        END OF YEAR


Kas, setara kas dan                                                                                                                  Cash, cash equivalent
  cerukan terdiri                                                                                                                    and bank overdrafts
  dari:                                                                                                                         comprise of the following:
  Kas dan setara kas                                  5                       2,329,491             1,230,544                  Cash and cash equivalents
  Cerukan                                            17                          (9,189)               (5,222)                           Bank overdrafts

                                                                              2,320,302             1,225,322
 * Setelah direklasifikasi (Catatan 36)
 )
                                                                                                                                                *) As reclassified (Note 36)




Catatan atas Laporan Keuangan Konsolidasian terlampir merupakan bagian yang                The accompanying Notes to the Consolidated Financial Statements
             tidak terpisahkan dari laporan keuangan konsolidasian                           form an integral part of these consolidated financial statements


                                                                                  8
Page 218
                                                                        The original consolidated financial statements included herein are in
                                                                                                                   the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                    PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                               AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                 NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                             FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                           As of December 31, 2024
                  Pada Tanggal Tersebut                                             and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                      (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                            unless otherwise stated)

1.   UMUM                                                          1.   GENERAL

     a.   Pendirian dan informasi umum Perusahaan                       a.   The Company’s            establishment        and     general
                                                                             information

          PT Avia Avian Tbk (“Perusahaan”) didirikan                         PT Avia Avian Tbk (the “Company”) is established
          berdasarkan Akta Pendirian No. 6 tanggal 1 Maret                   based on Deed of Establishment No. 6 dated March 1,
          1983, yang dibuat di hadapan Indrawati Setiabudhi,                 1983, made by Indrawati Setiabudhi, S.H., notary in
          S.H., notaris di Malang, yang diubah dengan akta                   Malang, that was amended based on Deed No. 63
          No. 63 tanggal 23 Mei 1983 yang dibuat di hadapan                  dated May 23, 1983 by the same notary. The
          notaris yang sama. Akta Perubahan Perusahaan                       Company’s Deeds of Amendments have been
          tersebut telah disahkan berdasarkan Keputusan                      approved based on the Decision of the Department of
          Departemen       Kehakiman   Republik    Indonesia                 Justice of the Republic of Indonesia dated July 5, 1983
          tertanggal 5 Juli 1983 dengan Surat Keputusan                      with Decision Letter No. C2-4948.HT.01.01.Th83
          No. C2-4948.HT.01.01.Th83 dan telah diumumkan                      and     was      published      in    State     Gazette
          dalam     Berita    Negara   Republik    Indonesia                 No. C2-4948.HT.01.01.Th83 of the Republic of
          No. C2- 4948.HT.01.01.Th83.                                        Indonesia.

          Anggaran Dasar Perusahaan telah mengalami                          The Company’s Articles of Association have been
          beberapa kali perubahan. Perubahan terakhir dibuat                 amended several times. The latest amendment was
          melalui Akta Notaris Liestiani Wang, S.H., M.Kn.,                  made through Notarial Deed No. 3 of Liestiani Wang,
          No. 3 tanggal 4 Agustus 2021, sehubungan dengan                    S.H., M.Kn., dated August 4, 2021, regarding the
          perubahan status perusahaan dari perseroan                         change of the Company’s status from a limited
          tertutup menjadi perseroan terbuka, perubahan                      company to a public company, the change in the
          nama Perusahaan dari PT Avia Avian menjadi                         Company’s name from PT Avia Avian to PT Avia Avian
          PT Avia Avian Tbk, peningkatan modal dasar                         Tbk, an increase in authorised share capital, changes
          Perusahaan, perubahan nilai nominal saham,                         in the share par value, approval for public offering,
          persetujuan    pelaksanaan    penawaran    umum,                   approval for Employee Stock Allocation (“ESA”),
          persetujuan pelaksanaan program Alokasi Saham                      rearrangement of the Company’s purposes and
          Karyawan (“ESA”), penyusunan kembali maksud                        objectives and activities, reaffirmation of the
          dan tujuan serta kegiatan usaha Perusahaan,                        Company’s Board of Commissioners and Directors,
          penegasan kembali Dewan Komisaris dan Direksi                      approval of the change in Articles of Association in
          Perusahaan, persetujuan perubahan Anggaran                         accordance with Regulation No. IX.J.1, Financial
          Dasar sesuai dengan Peraturan No. IX.J.1,                          Services Authority’s Regulation (“POJK”) No. 15/2020
          Peraturan Otoritas Jasa Keuangan (“POJK”)                          and POJK No. 33/2014 and appointment of the
          No. 15/2020 dan POJK No. 33/2014, dan penetapan                    Company’s controlling interests in accordance with
          pengendali Perusahaan sesuai POJK No. 3/2021.                      POJK No. 3/2021. This amendment has been
          Perubahan anggaran dasar ini telah disetujui oleh                  approved by the Minister of Law and Human Rights of
          Menteri Hukum dan Hak Asasi Manusia Republik                       the    Republic of Indonesia in          its Decree
          Indonesia       melalui      Surat     Keputusan                   No. AHU-0043612.AH.01.02.TAHUN 2021 dated
          No. AHU-0043612.AH.01.02.TAHUN 2021 tanggal                        August 12, 2021.
          12 Agustus 2021.

          Berdasarkan Anggaran Dasar Perusahaan, ruang                       Based on the Company’s Articles of Association, the
          lingkup kegiatan Perusahaan antara lain bergerak                   scope of activities of the Company comprises the
          dalam bidang industri pengolahan dan perdagangan                   processing industry and wholesale trading. The
          besar. Perusahaan berkantor pusat di Sidoarjo dan                  Company’s head office is located in Sidoarjo, with
          memiliki pabrik di Sidoarjo dan Serang.                            factories in Sidoarjo and Serang.

          Perusahaan memulai operasi komersialnya pada                       The Company started its commercial operations in
          tahun 1983.                                                        1983.




                                                               9
Page 219
                                                                                     The original consolidated financial statements included herein are in
                                                                                                                                the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                                  PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                                             AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                               NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                                           FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                                         As of December 31, 2024
                  Pada Tanggal Tersebut                                                           and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                                    (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                                          unless otherwise stated)

1.   UMUM (lanjutan)                                                       1.       GENERAL (continued)

     b.   Penawaran umum saham Perusahaan                                           b.    Public offering of the Company’s shares

          Berdasarkan     Akta     Notaris   No.   3    tanggal                           Based on Notarial Deed No. 3 dated August 4, 2021,
          4 Agustus 2021 oleh Notaris Liestiani Wang, S.H.,                               by Notary Liestiani Wang, S.H., M.Kn., notary in South
          M.Kn., notaris di Jakarta Selatan, perubahan ini telah                          Jakarta, this amendment was approved by the Minister
          disahkan oleh Menteri Hukum dan Hak Asasi                                       of Law and Human Rights under Decision Letter
          Manusia         dengan         Surat       Keputusan                            No. AHU-0043612.AH.01.02.TAHUN 2021 dated
          No. AHU-0043612.AH.01.02.TAHUN 2021 tanggal                                     August 12, 2021, the shareholders of the Company
          12 Agustus 2021, para pemegang saham                                            decided and approved matters, including the changes
          Perusahaan memutuskan dan menyetujui hal-hal                                    of the Company’s status from a limited company to a
          diantaranya perubahan status Perusahaan dari                                    public company and the Company’s name from
          perseroan tertutup menjadi perseroan terbuka dan                                PT Avia Avian to PT Avia Avian Tbk.
          perubahan nama Perusahaan dari PT Avia Avian
          menjadi PT Avia Avian Tbk.

          Dalam rangka penawaran umum perdana saham                                       In relation to the initial public offering of the Company’s
          Perusahaan, Perusahaan mendapatkan Surat                                        shares, the Company obtained the Notification Letter of
          Pemberitahuan Efektif Pernyataan Pendaftaran                                    Statement           of         Effective         Registration
          No. S-223/D.04/2021 tertanggal 30 November 2021                                 No. S-223/D.04/2021 dated November 30, 2021 from
          dari Otoritas Jasa Keuangan (“OJK”) untuk                                       the Financial Services Authority (“OJK”) to conduct an
          melakukan penawaran umum perdana sebanyak                                       initial public offering of 6,200,000,000 shares to the
          6.200.000.000 lembar saham dengan nilai nominal                                 public with a par value of Rp 10 (full amount) per share
          Rp 10 (angka penuh) per lembar saham dan harga                                  at an offering price of Rp 930 (full amount) per share.
          penawaran sebesar Rp 930 (angka penuh) per                                      All of the shares offered to the public in the initial public
          lembar saham. Seluruh saham yang ditawarkan ke                                  offering were new shares issued by the Company.
          masyarakat pada saat penawaran umum perdana                                     Effective on December 8, 2021, the Company’s shares
          berasal dari saham baru yang diterbitkan                                        have been listed on the Indonesia Stock Exchange
          Perusahaan. Efektif tanggal 8 Desember 2021,                                    (“IDX”).
          saham Perusahaan telah dicatatkan di Bursa Efek
          Indonesia (“BEI”).

          Berdasarkan Rapat Umum Pemegang Saham                                           Based on the Annual General Shareholders Meeting
          Tahunan tanggal 7 Desember 2023, yang berita                                    dated December 7, 2023, which was notarised by
          acaranya dituangkan dalam Akta Notaris No. 5                                    Notarial Deed No. 5 dated December 7, 2023, of
          tanggal 7 Desember 2023 dari Notaris Dr. Susanti,                               Notary Dr. Susanti, S.H., M.Kn., the shareholders
          S.H., M.Kn., para pemegang saham menyetujui untuk                               agreed to repurchase 1,425,000,000 ordinary shares of
          melakukan pembelian kembali sebanyak-banyaknya                                  the Company through a transaction at the IDX (Notes
          1.425.000.000 lembar saham biasa Perusahaan                                     20 and 37).
          melalui pembelian pada BEI (Catatan 20 dan 37).

     c.   Entitas induk dan entitas induk utama                                     c.    Parent and ultimate parent entity

          PT Wahana Lancar Rejeki dan PT Tancorp Surya                                    PT Wahana Lancar Rejeki and PT Tancorp Surya
          Sentosa merupakan entitas pengendali Perusahaan.                                Sentosa are the controlling interests of the Company.
          Pemilik manfaat dari Perusahaan adalah Wijono                                   The beneficial owners of the Company are Wijono
          Tanoko, Hermanto Tanoko dan Ruslan Tanoko.                                      Tanoko, Hermanto Tanoko and Ruslan Tanoko.

     d.   Entitas anak yang dikonsolidasi                                           d.    Consolidated subsidiaries

          Pada tanggal 31 Desember 2024 dan 2023,                                         As of December 31, 2024 and 2023, the Company has
          Perusahaan     memiliki     entitas  anak dengan                                subsidiaries with effective percentage of ownership as
          kepemilikan efektif sebagai berikut:                                            follows:
                                                                                  Dimulainya                 Persentase                Jumlah Aset
                                                                                   Kegiatan                 Kepemilikan/            Sebelum Eliminasi/
                                                                                  Komersial/                 Percentage                Total Assets
                                                                               Commencement                 of Ownership            Before Elimination
                  Entitas Anak/         Domisili/      Bidang Usaha/            of Commercial
                  Subsidiaries          Domicile     Nature of Business           Operations         2024                  2023    2024             2023

           Kepemilikan Langsung/
           Direct Ownership

           PT Tirta Kencana Tatawarna
              (“PT TKTW”)a)             Surabaya    Perdagangan/Trading            2000             99,99%             99,99%      4,176,481        3,830,103




                                                                          10
Page 220
                                                                                                            The original consolidated financial statements included herein are in
                                                                                                                                                       the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                                                          PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                                                                     AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                                                       NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                                                                   FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                                                                 As of December 31, 2024
                  Pada Tanggal Tersebut                                                                                   and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                                                            (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                                                                  unless otherwise stated)

1.   UMUM (lanjutan)                                                                              1.       GENERAL (continued)

     d.   Entitas anak yang dikonsolidasi (lanjutan)                                                       d.      Consolidated subsidiaries (continued)

                                                                                                         Dimulainya                    Persentase                   Jumlah Aset
                                                                                                          Kegiatan                    Kepemilikan/               Sebelum Eliminasi/
                                                                                                         Komersial/                    Percentage                   Total Assets
                                                                                                      Commencement                    of Ownership               Before Elimination
                     Entitas Anak/                  Domisili/           Bidang Usaha/                  of Commercial
                     Subsidiaries                   Domicile          Nature of Business                 Operations            2024                  2023      2024              2023

           Kepemilikan Langsung/
           Direct Ownership

           PT Solusi Rumah                                           Perdagangan dan jasa/
              Praktis (“PT SRP”)                    Surabaya         Trading and service                   2018               99.99%             99.99%            1,066               2,076
           PT Multipro Paint Indonesia                               Perdagangan dan industri/
              (“PT MPI”)                            Jakarta          Trading and industry                  2008               67.00%             67.00%           33,043              31,834

           Kepemilikan Tidak Langsung/
           Indirect Ownership

           Melalui PT TKTW/Through
           PT TKTW
           PT Tirtakencana Batamindo
           (“PT TKBI”)                               Batam             Perdagangan/Trading                2010                99,98%             99,98%           34,708              34,982
           a)
                dan entitas anak/and subsidiaries


     e.   Dewan Komisaris dan Direksi, Komite Audit dan                                                    e.      Board of Commissioners and Directors, Audit
          karyawan                                                                                                 Committee and employees

          Susunan Dewan Komisaris dan Direksi pada tanggal                                                         The compositions of the Company’s Boards of
          31 Desember 2024 dan 2023 adalah sebagai berikut:                                                        Commissioners and Directors as of December 31,
                                                                                                                   2024 and 2023 are as follows:

                                                                     2024                                              2023

          Dewan Komisaris                                                                                                                                   Board of Commissioners
          Komisaris Utama                                       Hermanto Tanoko                                   Hermanto Tanoko                            President Commissioner
          Komisaris                                             Mohammad Noor                                     Mohammad Noor                                       Commissioners
                                                                Rachman Soejoeti                                  Rachman Soejoeti

          Direksi                                                                                                                                                Board of Directors
          Direktur Utama                                       Wijono Tanoko                                    Wijono Tanoko                                      President Director
          Wakil Direktur Utama                                 Ruslan Tanoko                                    Ruslan Tanoko                                 Vice President Director
          Direktur                                         Robert Christian Tanoko                          Robert Christian Tanoko                                          Director
          Direktur                                           Kurnia Hadi Sinanto                              Kurnia Hadi Sinanto                                            Director
          Direktur                                          Angelica Tanisia Jozar                           Angelica Tanisia Jozar                                          Director

          Susunan komite audit pada tanggal 31 Desember                                                            The members of Company’s Audit Committee as of
          2024 dan 2023 adalah sebagai berikut:                                                                    December 31, 2024 and 2023 are as follows:

                                                                     2024                                              2023

          Komite Audit                                                                                                                                                Audit Committee
          Ketua                                                 Mohammad Noor                                  Mohammad Noor                                                   Chief
                                                                Rachman Soejoeti                               Rachman Soejoeti
          Anggota                                             Sammy TS Lalamentik                            Sammy TS Lalamentik                                               Member
          Anggota                                               Wardiman Wijaya                                  Fitradewata                                                   Member

          Pada tanggal 31 Desember 2024 dan 2023, Grup                                                             As of December 31, 2024 and 2023, the Group had a
          memiliki masing-masing 1.417 dan 1.422 orang                                                             total of 1,417 and 1,422 permanent employees,
          karyawan tetap (tidak diaudit).                                                                          respectively (unaudited).

     f.   Tanggal    penyelesaian                        laporan         keuangan                          f.      Completion date of the consolidated financial
          konsolidasian                                                                                            statements

          Laporan keuangan konsolidasian Perusahaan dan                                                            The consolidated financial statements of the Company
          entitas anak (bersama-sama “Grup”) diotorisasi oleh                                                      and subsidiaries (together the “Group”) were
          Direksi Perusahaan pada tanggal 24 Februari 2025.                                                        authorised by the Directors of the Company on
                                                                                                                   February 24, 2025.




                                                                                                 10
Page 221
                                                                         The original consolidated financial statements included herein are in
                                                                                                                    the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                     PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                                AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                  NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                              FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                            As of December 31, 2024
                  Pada Tanggal Tersebut                                              and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                       (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                             unless otherwise stated)

2.   PENERAPAN STANDAR BARU DAN REVISI                              2.   ADOPTION OF NEW AND REVISED STANDARDS

     a.   Perubahan nomenklatur          Standar    Akuntansi            a.   Change in the Indonesian Financial Accounting
          Keuangan Indonesia                                                  Standards nomenclature

          Sejalan dengan pengesahan Kerangka Standar                          In line with the ratification of the Indonesian Financial
          Pelaporan Keuangan Indonesia, Dewan Standar                         Reporting Standards Framework, the Financial
          Akuntansi Keuangan Ikatan Akuntan Indonesia                         Accounting Standards Board of the Indonesian Institute
          (DSAK-IAI) menyetujui perubahan nomenklatur                         of Accountants (“DSAK-IAI”) approved the change in
          Standar Akuntansi Keuangan Indonesia yang                           the Indonesian Financial Accounting Standards
          mengatur penomoran Pernyataan Standar Akuntansi                     nomenclature which regulates the numbering of
          Keuangan (PSAK) dan Interpretasi atas Standar                       Statements of Financial Accounting Standards
          Akuntansi Keuangan (ISAK). Hal ini bertujuan untuk                  (“PSAK”) and Interpretations of Financial Accounting
          membedakan antara PSAK dan ISAK yang diadopsi                       Standards (“ISAK”). This aims to differentiate between
          dari International Financial Reporting Standards                    PSAK and ISAK which are adopted from International
          (IFRS) dan yang tidak. Perubahan nomenklatur                        Financial Reporting Standards (IFRS) and to those
          Standar Akuntansi Keuangan Indonesia yang berlaku                   which are not. The change in the Indonesian Financial
          efektif pada 1 Januari 2024, tidak akan                             Accounting Standards nomenclature, which is effective
          mempengaruhi isi masing-masing PSAK dan ISAK.                       on January 1, 2024, does not affect the contents of
                                                                              each PSAK and ISAK.

     b.   Amendemen/penyesuaian standar yang berlaku                     b.   Amendments/improvements to standards effective
          efektif pada tahun berjalan                                         in the current year

          Dalam tahun berjalan, Grup telah menerapkan                         In the current year, the Group has applied
          sejumlah amendemen/penyesuaian PSAK yang                            amendments/improvements to PSAK that are relevant
          relevan dengan operasinya dan efektif untuk periode                 to its operations and effective for accounting period
          akuntansi yang dimulai pada atau setelah 1 Januari                  beginning on or after January 1, 2024. The adoption of
          2024. Penerapan atas PSAK revisi tidak                              these revised PSAKs does not result in changes to the
          mengakibatkan perubahan atas kebijakan akuntansi                    Group’s accounting policies and has no material effect
          Grup dan tidak memiliki dampak material terhadap                    on the amounts reported for the current or prior years.
          jumlah yang dilaporkan pada tahun berjalan atau
          tahun-tahun sebelumnya.

          •    PSAK 201 (Amendemen), “Penyajian Laporan                       •   PSAK 201 (Amendment), “Presentation of
               Keuangan”: Klasifikasi Liabilitas sebagai                          Financial Statements”: Classification of Liabilities
               Jangka Pendek atau Jangka Panjang                                  as Current or Non-Current

               Amandemen          ini  hanya     mempengaruhi                     The amendments affect only the presentation of
               penyajian liabilitas sebagai jangka pendek atau                    liabilities as current or non-current in the statement
               jangka panjang dalam laporan posisi keuangan                       of financial position and not the amount or timing of
               dan bukan jumlah atau waktu pengakuan aset,                        recognition of any asset, liability, income or
               liabilitas, penghasilan atau beban, atau                           expenses, or the information disclosed about those
               informasi yang diungkapkan mengenai pos-pos                        items.
               tersebut.

               Amandemen tersebut mengklarifikasi bahwa                           The amendments clarify that the classification of
               klasifikasi liabilitas sebagai jangka pendek atau                  liabilities as current or non-current is based on
               jangka panjang didasarkan pada hak yang ada                        rights that are in existence at the end of the
               pada akhir periode pelaporan, menetapkan                           reporting period, specify that classification is
               bahwa klasifikasi tersebut tidak dipengaruhi                       unaffected by expectations about whether an entity
               oleh     ekspektasi       apakah    entitas  akan                  will exercise its right to defer settlement of a
               menggunakan           haknya     untuk    menunda                  liability, explain that rights are in existence if
               penyelesaian suatu liabilitas, menjelaskan                         covenants are complied with at the end of the
               bahwa hak tersebut ada jika kovenan dipatuhi                       reporting period, and introduce a definition of
               pada      akhir       periode    pelaporan,   dan                  ‘settlement’ to make clear that settlement refers to
               memperkenalkan definisi 'penyelesaian' untuk                       the transfer to the counterparty of cash, equity
               memperjelas bahwa penyelesaian mengacu                             instruments, other assets or services.
               pada pengalihan ke pihak lain atas kas,
               instrumen ekuitas, aset dan jasa lainnya.




                                                                   11
Page 222
                                                                          The original consolidated financial statements included herein are in
                                                                                                                     the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                      PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                                 AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                   NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                               FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                             As of December 31, 2024
                  Pada Tanggal Tersebut                                               and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                        (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                              unless otherwise stated)

2.   PENERAPAN STANDAR BARU DAN REVISI (lanjutan)                    2.   ADOPTION OF NEW AND REVISED STANDARDS
                                                                          (continued)

     b.   Amendemen/penyesuaian standar yang berlaku                      b.   Amendments/improvements to standards effective
          efektif pada tahun berjalan (lanjutan)                               in the current year (continued)

          •    PSAK 201 (Amendemen), “Penyajian Laporan                        •   PSAK 201 (Amendment), “Presentation of
               Keuangan”: Liabilitas Jangka Panjang dengan                         Financial Statements”: Non-Current Liabilities with
               Kovenan                                                             Covenants

               Amandemen tersebut menetapkan bahwa                                 The amendments specify that only covenants that
               hanya perjanjian yang harus dipatuhi entitas                        an entity is required to comply with on or before
               pada atau sebelum akhir periode pelaporan                           the end of the reporting period affect the entity’s
               yang memengaruhi hak entitas untuk menunda                          right to defer settlement of a liability for at least
               penyelesaian liabilitas setidaknya selama dua                       twelve months after the reporting date (and
               belas bulan setelah tanggal pelaporan (dan                          therefore must be considered in assessing the
               karenanya harus dipertimbangkan dalam                               classification of the liability as current or non-
               menilai klasifikasi liabilitas sebagai lancar atau                  current). Such covenants affect whether the right
               tidak lancar). Perjanjian tersebut memengaruhi                      exists at the end of the reporting period, even if
               apakah hak tersebut ada pada akhir periode                          compliance with the covenant is assessed only
               pelaporan, bahkan jika kepatuhan terhadap                           after the reporting date (e.g. a covenant based on
               perjanjian dinilai hanya setelah tanggal                            the entity’s financial position at the reporting date
               pelaporan (misalnya perjanjian berdasarkan                          that is assessed for compliance only after the
               posisi keuangan entitas pada tanggal pelaporan                      reporting date).
               yang dinilai kepatuhannya hanya setelah
               tanggal pelaporan).

               DSAK-IAI juga menetapkan bahwa hak untuk                            DSAK-IAI also specifies that the right to defer
               menunda penyelesaian liabilitas setidaknya                          settlement of a liability for at least twelve months
               selama dua belas bulan setelah tanggal                              after the reporting date is not affected if an entity
               pelaporan tidak terpengaruh jika entitas hanya                      only has to comply with a covenant after the
               harus mematuhi perjanjian setelah periode                           reporting period. However, if the entity’s right to
               pelaporan. Namun, jika hak entitas untuk                            defer settlement of a liability is subject to the entity
               menunda penyelesaian liabilitas bergantung                          complying with covenants within twelve months
               pada kepatuhan entitas terhadap perjanjian                          after the reporting period, an entity discloses
               dalam waktu dua belas bulan setelah periode                         information that enables users of financial
               pelaporan, entitas mengungkapkan informasi                          statements to understand the risk of the liabilities
               yang    memungkinkan       pengguna     laporan                     becoming repayable within twelve months after the
               keuangan memahami risiko liabilitas yang                            reporting period. This would include information
               harus dibayar kembali dalam waktu dua belas                         about the covenants (including the nature of the
               bulan setelah periode pelaporan. Ini akan                           covenants and when the entity is required to
               mencakup      informasi    tentang    perjanjian                    comply with them), the carrying amount of related
               (termasuk sifat perjanjian dan kapan entitas                        liabilities and facts and circumstances, if any, that
               diharuskan untuk mematuhinya), jumlah                               indicate that the entity may have difficulties
               tercatat liabilitas terkait dan fakta serta                         complying with the covenants.
               keadaan, jika ada, yang menunjukkan bahwa
               entitas mungkin mengalami kesulitan dalam
               mematuhi perjanjian.

          •    PSAK 207 (Amendemen), “Laporan Arus Kas”                        •   PSAK 207 (Amendment), “Statements of Cash
               dan PSAK 107 (Amendemen), “Instrumen                                Flows” and PSAK 107 (Amendment), “Financial
               Keuangan:    Pengungkapan”:   Pengaturan                            Instruments: Disclosures”: Supplier Finance
               Pembiayaan Pemasok                                                  Arrangements




                                                                    12
Page 223
                                                                          The original consolidated financial statements included herein are in
                                                                                                                     the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                      PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                                 AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                   NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                               FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                             As of December 31, 2024
                  Pada Tanggal Tersebut                                               and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                        (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                              unless otherwise stated)
 [




2.   PENERAPAN STANDAR BARU DAN REVISI (lanjutan)                    2.   ADOPTION OF NEW AND REVISED STANDARDS
                                                                          (continued)

     b.   Amendemen/penyesuaian standar yang berlaku                      b.   Amendments/improvements to standards effective
          efektif pada tahun berjalan (lanjutan)                               in the current year (continued)

               Amandemen tersebut menambahkan tujuan                               The amendments add a disclosure objective to
               pengungkapan pada PSAK 207 yang                                     PSAK 207 stating that an entity is required to
               menyatakan bahwa suatu entitas diharuskan                           disclose information about its supplier finance
               untuk mengungkapkan informasi tentang                               arrangements that enables users of financial
               pengaturan keuangan pemasoknya yang                                 statements to assess the effects of those
               memungkinkan pengguna laporan keuangan                              arrangements on the entity’s liabilities and cash
               untuk menilai dampak pengaturan tersebut                            flows. In addition, PSAK 107 is amended to add
               terhadap liabilitas dan arus kas entitas. Selain                    supplier finance arrangements as an example
               itu,   PSAK       107    diamandemen         untuk                  within the requirements to disclose information
               menambahkan pengaturan keuangan pemasok                             about an entity’s exposure to concentration of
               sebagai contoh dalam persyaratan untuk                              liquidity risk.
               mengungkapkan informasi tentang paparan
               entitas terhadap konsentrasi risiko likuiditas.

               Amandemen tersebut berisi ketentuan transisi                        The amendments contain specific transition
               khusus untuk periode pelaporan tahunan                              provisions for the first annual reporting period in
               pertama     di   mana      Grup    menerapkan                       which the Group applies the amendments. Under
               amandemen tersebut. Berdasarkan ketentuan                           the transitional provisions an entity is not required
               transisi, suatu entitas tidak diharuskan untuk                      to disclose:
               mengungkapkan:

               •   informasi komparatif untuk setiap periode                       •    comparative information for any reporting
                   pelaporan yang disajikan sebelum awal                                periods presented before the beginning of the
                   periode pelaporan tahunan di mana entitas                            annual reporting period in which the entity first
                   pertama kali menerapkan amandemen                                    applies those amendments.
                   tersebut.
               •   informasi yang diwajibkan oleh PSAK                             •    the information otherwise required by PSAK
                   207:44H(b)(ii)-(iii) pada awal periode                               207:44H(b)(ii)-(iii) as at the beginning of the
                   pelaporan tahunan di mana entitas pertama                            annual reporting period in which the entity first
                   kali menerapkan amandemen tersebut.                                  applies those amendments.

     c.   Standar dan amendemen/penyesuaian standar                       c.   Standards and amendments/improvements                        to
          telah diterbitkan tapi belum diterapkan                              standards issued not yet adopted

          Pada tanggal persetujuan laporan keuangan                            At the date of authorization of these consolidated
          konsolidasian, standar dan amendemen-amendemen                       financial statements, the following standards and
          atas PSAK yang relevan bagi Grup, yang telah                         amendments to PSAK relevant to the Group were
          diterbitkan namun belum berlaku efektif, dengan                      issued but not yet effective, with early application
          penerapan dini diijinkan, adalah sebagai berikut:                    permitted:

          Efektif untuk periode yang dimulai pada atau setelah                 Effective for periods beginning on or after January 1,
          tanggal 1 Januari 2025                                               2025

          •    PSAK      221  (Amendemen),    “Pengaruh                        •   PSAK 221 (Amendment), “The Effects of Changes
               Perubahan Kurs Valuta Asing”: Kekurangan                            in  Foreign     Exchange Rates”:    Lack   of
               Ketertukaran”                                                       Exchangeability

          Efektif untuk periode yang dimulai pada atau setelah                 Effective for periods beginning on or after January 1,
          tanggal 1 Januari 2026                                               2026

          •    Amandemen PSAK 109, “Instrumen Keuangan”                        •   Amendments to PSAK 109, “Financial Instruments”
               dan PSAK 107, “Instrumen Keuangan:                                  and    PSAK      107,”    Financial Instruments:
               Pengungkapan”: Klasifikasi dan Pengukuran                           Disclosure”: Classification and Measurement of
               Instrumen Keuangan                                                  Financial Instrument




                                                                    13
Page 224
                                                                       The original consolidated financial statements included herein are in
                                                                                                                  the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                   PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                              AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                            FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                          As of December 31, 2024
                  Pada Tanggal Tersebut                                            and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                     (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                           unless otherwise stated)

2.   PENERAPAN STANDAR BARU DAN REVISI (lanjutan)                 2.   ADOPTION OF NEW AND REVISED STANDARDS
                                                                       (continued)

     c.   Standar dan amendemen/penyesuaian standar                    c.   Standards and amendments/improvements                        to
          telah diterbitkan tapi belum diterapkan (lanjutan)                standards issued not yet adopted (continued)

          Efektif untuk periode yang dimulai pada atau setelah              Effective for periods beginning on or after January 1,
          tanggal 1 Januari 2026 (lanjutan)                                 2026 (continued)

          •    Penyesuaian Tahunan 2024 terhadap PSAK                       •   2024 Annual Improvements to PSAK 107,
               107, “Instrumen Keuangan: Pengungkapan”,                         “Financial Instruments: Disclosures”, PSAK 109,
               PSAK 109, “Instrumen Keuangan”, PSAK 110,                        “Financial Instruments”, PSAK 110, “Consolidated
               “Laporan Keuangan Konsolidasian” dan PSAK                        Financial Statements” and PSAK 207, “Statement
               207, “Laporan Arus Kas”                                          of Cash Flows”

          Efektif untuk periode yang dimulai pada atau setelah              Effective for periods beginning on or after January 1,
          tanggal 1 Januari 2027                                            2027

          •    PSAK 413, “Penurunan Nilai”                                  •   PSAK 413, “Impairment”

          Sampai dengan tanggal penerbitan laporan keuangan                 As at the issuance date of the consolidated financial
          konsolidasian, dampak dari penerapan standar dan                  statements, the effects of adopting these standard and
          amendemen tersebut terhadap laporan keuangan                      amendments on the consolidated financial statements
          konsolidasian tidak dapat diketahui atau diestimasi               are not known nor reasonably estimable by
          oleh manajemen.                                                   management.


3.   INFORMASI       KEBIJAKAN        AKUNTANSI       YANG        3.   MATERIAL ACCOUNTING POLICY INFORMATION
     MATERIAL

     a.   Dasar    penyusunan         laporan      keuangan            a.   Basis of preparation of the consolidated financial
          konsolidasian                                                     statements

          Laporan keuangan konsolidasian Grup telah disusun                 The consolidated financial statements of the Group
          sesuai dengan Standar Akuntansi Keuangan di                       have been prepared in accordance with Indonesian
          Indonesia (“SAK”), yang mencakup Pernyataan                       Financial Accounting Standards (“SAK”), which
          Standar Akuntansi Keuangan (PSAK) dan Interpretasi                comprise the Statement of Financial Accounting
          Standar Akuntansi Keuangan (ISAK) yang diterbitkan                Standards (“PSAK”) and Interpretations of Statement of
          oleh Dewan Standar Akuntansi Keuangan Ikatan                      Financial Accounting Standard (“ISAK”) issued by the
          Akuntan Indonesia (DSAK-IAI) dan peraturan                        Financial Accounting Standards Board of the
          regulator pasar modal untuk entitas yang berada di                Indonesian Institute of Accountants (“DSAK-IAI”) and
          bawah pengawasannya.                                              regulations of capital market regulator for entities under
                                                                            its control.

          Kebijakan akuntansi yang diterapkan dalam                         The accounting policies adopted in the preparation of
          penyusunan laporan keuangan konsolidasian adalah                  the consolidated financial statements are consistent
          selaras dengan kebijakan akuntansi yang diterapkan                with those adopted in the preparation of the
          dalam penyusunan laporan keuangan konsolidasian                   consolidated financial statements for the year ended
          tanggal 31 Desember 2023, kecuali bagi penerapan                  December 31, 2023, except for the adoption of several
          beberapa SAK yang telah direvisi. Seperti                         amended SAKs. As disclosed in Note 2, several
          diungkapkan dalam Catatan 2, beberapa standar                     amended and published accounting standards were
          akuntansi yang telah direvisi dan diterbitkan,                    adopted effective January 1, 2024.
          diterapkan efektif tanggal 1 Januari 2024.

          Grup     telah   menyusun    laporan   keuangan                   The Group has prepared the consolidated financial
          konsolidasian dengan dasar bahwa Grup akan terus                  statements on the basis that it will continue to operate
          mempertahankan kelangsungan usaha.                                as a going concern.




                                                                 14
Page 225
                                                                           The original consolidated financial statements included herein are in
                                                                                                                      the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                       PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                                  AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                    NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                                FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                              As of December 31, 2024
                  Pada Tanggal Tersebut                                                and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                         (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                               unless otherwise stated)

3.   INFORMASI     KEBIJAKAN            AKUNTANSI          YANG       3.   MATERIAL ACCOUNTING                  POLICY       INFORMATION
     MATERIAL (lanjutan)                                                   (continued)

     a.   Dasar    penyusunan           laporan        keuangan            a.   Basis of preparation of the consolidated financial
          konsolidasian (lanjutan)                                              statements (continued)

          Laporan keuangan konsolidasian, kecuali untuk                         The consolidated financial statements, except for the
          laporan arus kas konsolidasian, disusun berdasarkan                   consolidated statement of cash flows, have been
          dasar akrual dengan menggunakan konsep harga                          prepared on the accrual basis using the historical cost
          perolehan, kecuali beberapa akun tertentu disusun                     basis of accounting, except for certain accounts which
          berdasarkan pengukuran lain sebagaimana diuraikan                     are measured on the bases described in the related
          dalam kebijakan akuntansi masing-masing akun                          accounting policies for those accounts.
          tersebut.

          Laporan arus kas konsolidasian disusun dengan                         The consolidated statements of cash flows have been
          menggunakan         metode     langsung dengan                        prepared using direct method which classify cash flows
          mengelompokkan arus kas dalam aktivitas-aktivitas                     into operating, investing and financing activities.
          operasi, investasi dan pendanaan.

          Mata uang pelaporan yang digunakan dalam laporan                      The reporting currency used in the consolidated
          keuangan konsolidasian adalah Rupiah, yang                            financial statements is Rupiah, which is the Group’s
          merupakan mata uang fungsional Grup.                                  functional currency.

          Seluruh     angka     dalam      laporan     keuangan                 Figures in the consolidated financial statements are
          konsolidasian ini, dibulatkan dan disajikan dalam                     rounded to and stated in millions of Rupiah (“Rp”),
          jutaan Rupiah (“Rp”), kecuali dinyatakan lain.                        unless otherwise specified.

     b.   Klasifikasi lancar/jangka       pendek     dan    tidak          b.   Current and non-current classification
          lancar/jangka panjang

          Grup menyajikan aset dan liabilitas dalam laporan                     The Group presents assets and liabilities in the
          posisi      keuangan      konsolidasian   berdasarkan                 consolidated statement of financial position based on
          klasifikasi    lancar/tidak   lancar    atau   jangka                 current/non-current classification.
          pendek/jangka panjang.

           Suatu aset disajikan lancar bila:                                    An asset is current when it is:
           i. akan direalisasi, dijual atau digunakan dalam                     i. expected to be realized or intended to be sold or
               siklus operasi normal,                                                consumed in the normal operating cycle,
          ii. untuk diperdagangkan,                                             ii. held primarily for the purpose of trading,
          iii. akan direalisasi dalam 12 bulan setelah tanggal                  iii. expected to be realized within 12 months after the
               pelaporan, atau kas atau setara kas kecuali yang                      reporting period, or cash or cash equivalent unless
               dibatasi penggunaannya atau akan digunakan                            restricted from being exchanged or used to settle a
               untuk melunasi suatu liabilitas dalam paling                          liability for at least 12 months after the reporting
               lambat 12 bulan setelah periode pelaporan.                            period.

          Seluruh aset lain diklasifikasikan sebagai tidak lancar.              All other assets are classified as non-current.

           Suatu liabilitas disajikan sebagai jangka pendek bila:               A liability is current when it is:
           i. akan dilunasi dalam siklus operasi normal,                        i. expected to be settled in the normal operating
          ii. untuk diperdagangkan,                                                  cycle,
          iii. akan dilunasi dalam 12 bulan setelah tanggal                     ii. held primarily for the purpose of trading,
               pelaporan, atau                                                  iii. due to be settled within 12 months after the
          iv. tidak ada hak tanpa syarat untuk menangguhkan                          reporting period, or
               pelunasannya selama paling tidak 12 bulan                        iv. there is no unconditional right to defer the
               setelah periode pelaporan.                                            settlement of the liability for at least 12 months
                                                                                     after the reporting period.

          Seluruh liabilitas lain diklasifikasikan sebagai jangka               All other liabilities are classified as non-current.
          panjang.

          Aset dan liabilitas pajak tangguhan diklasifikasikan                  Deferred tax assets and liabilities are classified as non-
          sebagai aset tidak lancar dan liabilitas jangka                       current assets and liabilities.
          panjang.


                                                                     15
Page 226
                                                                          The original consolidated financial statements included herein are in
                                                                                                                     the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                      PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                                 AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                   NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                               FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                             As of December 31, 2024
                  Pada Tanggal Tersebut                                               and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                        (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                              unless otherwise stated)

3.   INFORMASI     KEBIJAKAN            AKUNTANSI        YANG        3.   MATERIAL ACCOUNTING                  POLICY       INFORMATION
     MATERIAL (lanjutan)                                                  (continued)

     c.   Prinsip-prinsip konsolidasi                                     c.   Principles of consolidation

          Laporan keuangan konsolidasian meliputi laporan                      The consolidated financial statements incorporate the
          keuangan Perusahaan dan entitas yang dikendalikan                    financial statements of the Company and the entity in
          secara langsung ataupun tidak langsung oleh                          which the Company has the ability to directly or
          Perusahaan. Kendali diperoleh bila Grup terekspos                    indirectly exercise control. Control is achieved when
          atau memiliki hak atas timbal balik hasil variabel dari              the Group are exposed, or have rights, to variable
          keterlibatannya dengan investee dan memiliki                         returns from its involvement with the investee and have
          kemampuan untuk mempengaruhi timbal balik                            the ability to affect those returns through its power over
          tersebut melalui kekuasaannya atas investee.                         the investee. Thus, the Group control an investee if
          Dengan demikian, investor mengendalikan investee                     and only if the Group have all of the following:
          jika dan hanya jika investor memiliki seluruh hal
          berikut ini:

            i. Kekuasaan atas investee, yaitu hak yang ada                      i. Power over the investee, that is existing rights that
               saat ini yang memberi investor kemampuan kini                       give the Group current ability to direct the relevant
               untuk mengarahkan aktivitas relevan dari                            activities of the investee,
               investee,
           ii. Eksposur atau hak atas timbal balik hasil variabel               ii. Exposure, or rights, to variable returns from its
               dari keterlibatannya dengan investee, dan                            involvement with the investee, and
          iii. Kemampuan untuk menggunakan kekuasaannya                        iii. The ability to use its power over the investee to
               atas investee untuk mempengaruhi jumlah imbal                        affect its returns.
               hasil.

          Bila Grup tidak memiliki hak suara atau hak serupa                   When the Group have less than a majority of the voting
          secara mayoritas atas suatu investee, Grup                           or similiar rights of an investee, the Group consider all
          mempertimbangkan semua fakta dan keadaan yang                        relevant facts and circumstances in assessing whether
          relevan dalam mengevaluasi apakah mereka memiliki                    it has power over an investee, including:
          kekuasaan atas investee, termasuk:

            i. Pengaturan kontraktual dengan pemilik hak suara                   i. The contractual arrangement with the other vote
               lainnya dari investee,                                               holders of the investee,
           ii. Hak yang timbul atas pengaturan kontraktual lain,                ii. Rights     arising    from  other    contractual
               dan                                                                  arrangements, and
          iii. Hak suara dan hak suara potensial yang dimiliki                 iii. The Group’s voting rights and potential voting
               Grup.                                                                rights.

          Grup menilai kembali apakah mereka mengendalikan                     The Group re-assesses whether or not it controls an
          investee bila fakta dan keadaan mengindikasikan                      investee if facts and circumstances indicate that there
          adanya perubahan terhadap satu atau lebih dari                       are changes to one or more of the three elements of
          ketiga elemen dari pengendalian. Konsolidasi atas                    control. Consolidation of a subsidiary begins when the
          entitas-entitas anak dimulai sejak Grup memperoleh                   Group obtain the control over the subsidiary and
          pengendalian atas entitas anak dan berhenti pada                     ceases when the Group loses control of the subsidiary.
          saat     Grup     kehilangan    pengendalian     atas                Assets, liabilities, income and expenses of a subsidiary
          Perusahaan. Aset, liabilitas, penghasilan dan beban                  acquired during the year are included in the
          dari entitas anak yang diakuisisi pada tahun tertentu                consolidated financial statements from the date the
          disertakan dalam laporan keuangan konsolidasian                      Group gain control until the date the Group cease to
          sejak tanggal Grup memperoleh kendali sampai                         control the subsidiary.
          tanggal Grup tidak lagi mengendalikan entitas anak
          tersebut.

          Laporan keuangan entitas anak disusun dengan                         The financial statements of the subsidiaries are
          periode pelaporan yang sama dengan Perusahaan.                       prepared for the same reporting period as the
          Kebijakan akuntansi yang digunakan dalam penyajian                   Company. The accounting policies adopted in
          laporan keuangan konsolidasian telah diterapkan                      preparing the consolidated financial statements have
          secara konsisten oleh Grup, kecuali dinyatakan lain.                 been consistently applied by the Group, unless
                                                                               otherwise stated.




                                                                    16
Page 227
                                                                         The original consolidated financial statements included herein are in
                                                                                                                    the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                     PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                                AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                  NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                              FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                            As of December 31, 2024
                  Pada Tanggal Tersebut                                              and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                       (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                             unless otherwise stated)

3.   INFORMASI     KEBIJAKAN           AKUNTANSI        YANG        3.   MATERIAL ACCOUNTING                  POLICY       INFORMATION
     MATERIAL (lanjutan)                                                 (continued)

     c.   Prinsip-prinsip konsolidasi (lanjutan)                         c.   Principles of consolidation (continued)

          Kepentingan non-pengendali (“KNP”) mencerminkan                     Non-controlling interests (“NCI”) represents the portion
          bagian atas laba atau rugi dan aset neto dari entitas               of the profit or loss and net assets of the subsidiary not
          anak yang tidak dapat diatribusikan, secara langsung                attributable directly or indirectly to the Company, which
          maupun tidak langsung, pada Perusahaan, yang                        are presented in the consolidated statement of profit or
          masing-masing disajikan dalam laporan laba rugi dan                 loss and other comprehensive income and under the
          penghasilan komprehensif lain konsolidasian dan                     equity section of the consolidated statement of financial
          dalam ekuitas pada laporan posisi keuangan                          position,     respectively,     separately    from     the
          konsolidasian, terpisah dari bagian yang dapat                      corresponding portion attributable to the owner of the
          diatribusikan kepada pemilik Perusahaan.                            Company.

          Kepentingan non-pengendali pada awalnya dapat                       Non-controlling interest may initially be measured at
          diukur sebesar nilai wajar atau bagian proporsional                 fair value or at the non-controlling interests’
          kepentingan non-pengendali atas nilai wajar aset                    proportionate share of the fair value of the acquiree’s
          neto teridentifikasi pihak yang diakuisisi. Pilihan                 identifiable net assets. The choice of measurement is
          pengukuran dibuat untuk masing-masing akuisisi.                     made on an acquisition-by-acquisition basis. Other
          Kepentingan non-pengendali lain awalnya diukur                      non-controlling interests are initially measured at fair
          sebesar nilai wajar. Setelah akuisisi, jumlah tercatat              value. Subsequent to acquisition, the carrying amount
          kepentingan      non-pengendali     adalah     jumlah               of non-controlling interests is the amount of those
          kepentingan tersebut pada pengakuan awal ditambah                   interests at initial recognition plus the non-controlling
          bagian kepentingan non-pengendali dari perubahan                    interests’ share of subsequent changes in equity.
          selanjutnya di ekuitas.

          Seluruh laba rugi dan setiap komponen penghasilan                   Profit or loss and each component of other
          komprehensif lain diatribusikan pada pemilik entitas                comprehensive income are attributed to the equity
          induk dan pada kepentingan non-pengendali (“KNP”),                  holders of the parent of the Company and to the non-
          walaupun hal ini akan menyebabkan saldo KNP yang                    controlling interests (“NCI”), even if this results in the
          defisit. Bila dipandang perlu, penyesuaian dilakukan                NCI having deficit balance. When necessary,
          terhadap laporan keuangan entitas anak untuk                        adjustments are made to the financial statements of
          diselaraskan dengan kebijakan akuntansi Grup.                       subsidiary to bring their accounting policies into the line
                                                                              with the Group accounting policies.

          Seluruh saldo akun, transaksi, penghasilan dan                      All intra and inter-group balances, transactions, income
          beban antar perusahaan yang signifikan, dan laba                    and expenses, and unrealized profits and losses
          atau rugi hasil transaksi dari intra Grup yang belum                resulting from intra-group transactions and dividends
          direalisasi dan dividen dieliminasi pada saat                       are eliminated on consolidations.
          konsolidasi.

          Perubahan dalam bagian kepemilikan entitas induk                    A change in the parent’s ownership interest in a
          terhadap entitas anak yang tidak mengakibatkan                      subsidiary, without a loss of control, is accounted for as
          hilangnya pengendalian, dicatat sebagai transaksi                   an equity transaction. If the Company loss control over
          ekuitas. Bila kehilangan pengendalian atas suatu                    a subsidiary, it derecognizes the related assets
          entitas anak, maka Perusahaan menghentikan                          (including goodwill), liabilities, NCI and other
          pengakuan atas aset (termasuk goodwill), liabilitas                 component of equity, while any resulting gain or loss is
          dan komponen lain dari ekuitas terkait, sementara                   recognized in the profit or loss. Any investment
          rugi atau laba yang dihasilkan diakui pada laba rugi.               retained is recognized at fair value.
          Bagian dari investasi yang tersisa diakui pada nilai
          wajar.

          Transaksi perubahan nilai investasi pada Entitas                    Change of carrying value of investment transaction
          Anak yang timbul dari penerbitan saham baru oleh                    which derived from the issuance of new shares of
          Entitas Anak kepada Perusahaan dicatat pada akun                    Subsidiary to the Company is recorded as “Differences
          “Selisih transaksi perubahan ekuitas Entitas Anak                   arising from changes in equity of Subsidiary and effect
          dan dampak transaksi dengan kepentingan non-                        of transactions with non-controlling interest” account
          pengendali” sebagai bagian dari “Ekuitas” pada                      which is presented under the “Equity” account in the
          laporan posisi keuangan konsolidasian.                              consolidated statement of financial position.




                                                                   17
Page 228
                                                                          The original consolidated financial statements included herein are in
                                                                                                                     the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                      PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                                 AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                   NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                               FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                             As of December 31, 2024
                  Pada Tanggal Tersebut                                               and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                        (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                              unless otherwise stated)

3.   INFORMASI     KEBIJAKAN           AKUNTANSI         YANG        3.   MATERIAL ACCOUNTING                  POLICY       INFORMATION
     MATERIAL (lanjutan)                                                  (continued)

     d.   Kombinasi bisnis                                                d.   Business combination

          Kombinasi bisnis dicatat menggunakan metode                          Business combinations are accounted for using
          akuisisi. Imbalan yang dialihkan dalam suatu                         acquisition method. The consideration transferred in a
          kombinasi bisnis diukur pada nilai wajar, yang                       business combination is measured at fair value, which
          dihitung sebagai hasil penjumlahan dari nilai wajar                  is calculated as the sum of the acquisition-date fair
          tanggal akuisisi atas seluruh aset yang dialihkan oleh               values of the assets transferred by the Group, liabilities
          Grup, liabilitas yang diakui oleh Grup kepada pemilik                incurred by the Group to the former owners of the
          sebelumnya dari pihak yang diakuisisi dan                            acquiree, and the equity interests issued by the Group
          kepentingan ekuitas yang diterbitkan oleh Grup                       in exchange for control of the acquiree. The
          dalam pertukaran pengendalian dari pihak yang                        acquisition-related costs incurred are expensed in the
          diakuisisi. Biaya akuisisi yang terjadi dibiayakan dan               current period.
          dicatat sebagai beban pada periode berjalan.

          Pada tanggal akuisisi, aset teridentifikasi yang                     At the acquisition date, the identifiable assets acquired
          diperoleh dan liabilitas yang diambil alih diakui pada               and the liabilities assumed are recognized at their fair
          nilai wajar kecuali untuk aset dan liabilitas tertentu               value except for certain assets and liabilities that are
          yang diukur sesuai dengan standar yang relevan.                      measured in accordance with the relevant standards.

          Selisih lebih antara penjumlahan imbalan yang                        The excess of the aggregate of the consideration
          dialihkan dan jumlah yang diakui untuk kepentingan                   transferred and the amount recognized for non-
          non-pengendali dan nilai wajar kepentingan ekuitas                   controlling interest and the fair value of the acquirer’s
          yang sebelumnya dimiliki oleh pihak pengakuisisi                     previously held equity interest in the acquiree (if any)
          pada pihak diakuisisi (jika ada) atas jumlah neto pada               over the net of the acquisition-date amounts of the
          tanggal akuisisi atas aset teridentifikasi yang                      identifiable assets acquired and liabilities assumed is
          diperoleh dan liabilitas yang diambil alih pada tanggal              recorded as goodwill.
          akuisisi dicatat sebagai goodwill.

          Jika nilai wajar aset neto yang diperoleh melebihi                   If the fair value of the net assets acquired is in excess
          jumlah gabungan imbalan yang dialihkan, Grup                         of the aggregate consideration transferred, the Group
          menilai kembali apakah telah mengidentifikasi                        re-assesses whether it has correctly identified all of the
          dengan tepat seluruh aset yang diperoleh dan                         assets acquired and all of the liabilities assumed and
          seluruh liabilitas yang diambil alih dan menelaah                    reviews the procedures used to measure the amounts
          prosedur yang digunakan untuk mengukur jumlah                        to be recognized at the acquisition date. If the
          yang akan diakui pada tanggal akuisisi. Jika penilaian               reassessment still results in an excess of the fair value
          kembali masih menghasilkan selisih lebih nilai wajar                 of net assets acquired over the aggregate
          aset neto yang diperoleh atas jumlah gabungan                        consideration transferred, then the gain is recognized
          imbalan yang dialihkan, maka keuntungan diakui                       in profit or loss.
          dalam laba rugi.

          Bila imbalan yang dialihkan oleh Grup dalam suatu                    When the consideration transferred by the Group in a
          kombinasi bisnis termasuk aset atau liabilitas yang                  business combination includes assets or liabilities
          berasal dari pengaturan imbalan kontinjensi                          resulting from a contingent consideration arrangement,
          (contingent consideration arrangement), imbalan                      the contingent consideration is measured at its
          kontinjensi tersebut diukur pada nilai wajar pada                    acquisition date fair value and included as part of the
          tanggal akuisisi dan termasuk sebagai bagian dari                    consideration transferred in a business combination.
          imbalan yang dialihkan dalam suatu kombinasi bisnis.                 Changes in the fair value of the contingent
          Perubahan dalam nilai wajar atas imbalan kontinjensi                 consideration that qualify as measurement period
          yang memenuhi syarat sebagai penyesuaian periode                     adjustments are adjusted retrospectively, with
          pengukuran disesuaikan secara retrospektif, dengan                   corresponding      adjustments     against      goodwill.
          penyesuaian terkait terhadap goodwill. Penyesuaian                   Measurement period adjustments are adjustments that
          periode pengukuran adalah penyesuaian yang                           arise from additional information obtained during the
          berasal dari informasi tambahan yang diperoleh                       measurement period (which cannot exceed one year
          selama periode pengukuran (yang tidak melebihi satu                  from the acquisition date) about facts and
          tahun sejak tanggal akuisisi) tentang fakta-fakta dan                circumstances that existed at the acquisition date.
          kondisi yang ada pada tanggal akuisisi.




                                                                    18
Page 229
                                                                         The original consolidated financial statements included herein are in
                                                                                                                    the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                     PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                                AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                  NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                              FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                            As of December 31, 2024
                  Pada Tanggal Tersebut                                              and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                       (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                             unless otherwise stated)

3.   INFORMASI     KEBIJAKAN           AKUNTANSI        YANG        3.   MATERIAL ACCOUNTING                  POLICY       INFORMATION
     MATERIAL (lanjutan)                                                 (continued)

     d.   Kombinasi bisnis (lanjutan)                                    d.   Business combination (continued)

          Perlakuan akuntansi selanjutnya untuk perubahan                     The subsequent accounting for changes in the fair
          nilai wajar dari imbalan kontinjensi yang tidak                     value of the contingent consideration that do not qualify
          memenuhi syarat sebagai penyesuaian periode                         as measurement period adjustments depends on how
          pengukuran tergantung pada bagaimana imbalan                        the contingent consideration is classified. Contingent
          kontinjensi diklasifikasikan. Imbalan kontinjensi yang              consideration that is classified as equity is not
          diklasifikasikan sebagai ekuitas tidak diukur kembali               remeasured at subsequent reporting dates and its
          pada setiap tanggal pelaporan dan penyelesaian                      subsequent settlement is accounted for within equity.
          selanjutnya diperhitungkan dalam ekuitas.

          Imbalan kontinjensi yang diklasifikasikan sebagai                   Contingent consideration classified as an asset or
          aset atau liabilitas yang merupakan instrumen                       liability that is a financial instrument and within the
          keuangan dan termasuk dalam ruang lingkup PSAK                      scope of PSAK 109 is measured at fair value with the
          109 diukur pada nilai wajar dengan perubahan atas                   changes in fair value recognized in profit or loss in
          nilai wajar diakui dalam laba rugi sesuai dengan                    accordance with PSAK 109. Other contingent
          PSAK 109. Imbalan kontinjensi lain yang tidak                       consideration that is not within the scope of PSAK 109
          termasuk dalam ruang lingkup PSAK 109 diukur pada                   is measured at fair value at each reporting date with
          nilai wajar pada setiap tanggal pelaporan dengan                    changes in fair value recognized in profit or loss.
          perubahan atas nilai wajar diakui dalam laba rugi.

          Bila suatu kombinasi bisnis dilakukan secara                        When a business combination is achieved in stages,
          bertahap, kepemilikan terdahulu Grup atas pihak                     the Group’s previously held equity interests in the
          diakuisisi diukur kembali ke nilai wajar pada tanggal               acquired entity are remeasured to its acquisition-date
          akuisisi dan keuntungan atau kerugian dihasilkan, jika              fair value and the resulting gain or loss, if any, is
          ada, diakui dalam laba rugi. Jumlah yang berasal dari               recognized in profit or loss. Amounts arising from
          kepemilikan     sebelum tanggal        akuisisi  yang               interests in the acquiree prior to the acquisition date
          sebelumnya telah diakui dalam penghasilan                           that have previously been recognized in other
          komprehensif lain direklasifikasi ke laba rugi dimana               comprehensive income are reclassified to profit or loss
          perlakuan tersebut akan sesuai jika kepemilikan                     where such treatment would be appropriate if that
          tersebut dilepas/dijual.                                            interests were disposed of.

          Jika akuntansi awal untuk kombinasi bisnis belum                    If the initial accounting for a business combination is
          selesai pada akhir periode pelaporan saat kombinasi                 incomplete by the end of the reporting period in which
          terjadi, Grup melaporkan jumlah sementara untuk                     the combination occurs, the Group reports provisional
          pos-pos yang proses akuntansinya belum selesai                      amounts for the items for which the accounting is
          dalam laporan keuangannya. Selama periode                           incomplete. Those provisional amounts are adjusted
          pengukuran, pihak pengakuisisi menyesuaikan                         retrospectively during the measurement period, or
          secara retrospektif, aset atau liabilitas tambahan                  additional assets or liabilities are recognized, to reflect
          yang diakui, untuk mencerminkan informasi baru                      new     information     obtained     about    facts    and
          yang diperoleh tentang fakta dan keadaan yang ada                   circumstances that existed as at the acquisition date
          pada tanggal akuisisi dan, jika diketahui, akan                     that, if known, would have affected the amount
          berdampak pada jumlah yang diakui pada tanggal                      recognized as at that date.
          tersebut.

     e.   Kombinasi bisnis entitas sepengendali                          e.   Business combination of entities under common
                                                                              control

          Kombinasi bisnis antara entitas sepengendali                        Business combination involving entities under common
          diperlakukan sesuai dengan PSAK 338. Berdasarkan                    control is accounted in accordance with PSAK 338.
          PSAK ini, transaksi kombinasi bisnis entitas                        Under this PSAK, business combination of entities
          sepengendali, berupa pengalihan bisnis yang                         under common control transactions, such as transfers
          dilakukan dalam rangka reorganisasi entitas-entitas                 of business conducted within the framework of the
          yang berada di dalam suatu Grup yang sama, bukan                    reorganization of the entities that are in the same
          merupakan perubahan kepemilikan dalam arti                          group, is not a change of ownership in terms of
          substansi ekonomi, sehingga transaksi tersebut tidak                economic substance, hence, the transaction does not
          menimbulkan laba atau rugi bagi Grup secara                         result in a gain or loss for the Group as a whole or for
          keseluruhan ataupun bagi entitas individu dalam                     individual entities within the Group.
          Grup tersebut.



                                                                   19
Page 230
                                                                          The original consolidated financial statements included herein are in
                                                                                                                     the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                      PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                                 AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                   NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                               FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                             As of December 31, 2024
                  Pada Tanggal Tersebut                                               and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                        (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                              unless otherwise stated)

3.   INFORMASI     KEBIJAKAN           AKUNTANSI        YANG        3.   MATERIAL ACCOUNTING                   POLICY       INFORMATION
     MATERIAL (lanjutan)                                                 (continued)

     e.   Kombinasi bisnis entitas sepengendali (lanjutan)               e.   Business combination of entities under common
                                                                              control (continued)

          Kombinasi bisnis sepengendali dicatat dengan                        Business combinations under common control are
          menggunakan metode penyatuan kepemilikan.                           accounted for using the pooling-of-interests method.

          Metode penyatuan kepemilikan diterapkan seolah-                     The pooling-of-interest method is applied as if the
          olah entitas-entitas tersebut telah bergabung sejak                 entities had been combined from the period when the
          periode dimana entitas yang bergabung berada                        merging entities were placed under common control.
          dalam sepengendalian. Selisih antara imbalan yang                   The difference between the consideration transferred
          dialihkan dan nilai tercatat aset neto pihak yang                   and the book value of the net assets of the acquiree is
          diakuisisi disajikan dalam “tambahan modal disetor”                 presented under “additional paid-in capital” and is not
          dan tidak direklasifikasi ke laba rugi atau                         recycled to profit or loss nor reclassified to retained
          direklasifikasi ke saldo laba ketika pengendalian                   earnings when control is lost.
          hilang.

     f.   Investasi pada ventura bersama                                 f.   Investment in joint ventures

          Pengaturan bersama diklasifikasikan sebagai operasi                 Investments in joint arrangements are classified as
          bersama atau ventura bersama bergantung pada hak                    either joint operations or joint ventures depending on
          dan kewajiban kontraktual para investor bukan                       the contractual rights and obligations of each investor
          struktur hukum dari pengaturan bersama. Grup telah                  rather than the legal structure of the joint arrangement.
          menilai sifat dari pengaturan bersama dan                           Group has assessed the nature of its joint
          menentukan pengaturan tersebut sebagai ventura                      arrangements and determined them to be joint
          bersama. Ventura bersama dicatat menggunakan                        ventures. A joint venture is accounted for using the
          metode ekuitas.                                                     equity method.

          Sesuai metode ekuitas, investasi pada ventura                       Under the equity method, the investment in a joint
          bersama pada awalnya dicatat pada biaya perolehan                   venture is initially recognised at cost and adjusted
          dan selanjutnya disesuaikan untuk mengakui bagian                   thereafter to recognise the investor’s share of the post-
          investor atas laba rugi pasca akuisisi dari pihak yang              acquisition profits or losses of the investee in profit or
          diakuisisi atas laba rugi, dan bagiannya atas                       loss, and its share of movements in other
          pergerakan penghasilan komprehensif lainnya dari                    comprehensive income of the investee in other
          pihak yang diakuisisi atas penghasilan komprehensif                 comprehensive income.
          lainnya.

          Dividen yang diterima atau yang akan diterima dari                  Dividends received or receivable from a joint venture
          ventura bersama diakui sebagai pengurang jumlah                     are recognised as a reduction in the carrying amount of
          tercatat investasi.                                                 the investment.

          Jika bagian Grup atas kerugian ventura bersama                      When the Group’s share of losses in a joint venture
          sama dengan atau melebihi kepentingannya pada                       equals or exceeds its interest in the joint ventures,
          ventura bersama, termasuk piutang tanpa agunan,                     including any other unsecured receivables, the Group
          Grup menghentikan pengakuan bagian kerugiannya,                     does not recognise further losses, unless it has
          kecuali Grup memiliki kewajiban legal atau konstruktif              incurred legal or constructive obligations or made
          atau melakukan pembayaran atas nama ventura                         payments on behalf of the joint venture.
          bersama.

          Keuntungan dan kerugian yang belum direalisasi atas                 Unrealised gains and losses on transactions between
          transaksi antara Grup dan ventura bersama telah                     the Group and a joint venture have been eliminated to
          dieliminasi sebesar kepemilikan Grup pada ventura                   the extent of the Group’s interest in the joint venture.
          bersama tersebut.

          Setiap akhir periode pelaporan, Grup mengevaluasi                   At the end of each reporting period, the Group
          apakah terdapat bukti objektif bahwa investasi                      assesses whether there is objective evidence that
          pada ventura bersama mengalami penurunan nilai.                     investment in a joint venture is impaired.




                                                                   20
Page 231
                                                                          The original consolidated financial statements included herein are in
                                                                                                                     the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                      PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                                 AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                   NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                               FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                             As of December 31, 2024
                  Pada Tanggal Tersebut                                               and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                        (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                              unless otherwise stated)

3.   INFORMASI     KEBIJAKAN          AKUNTANSI       YANG          3.   MATERIAL ACCOUNTING                   POLICY       INFORMATION
     MATERIAL (lanjutan)                                                 (continued)

     g.   Transaksi dan saldo dalam mata uang asing                      g.   Foreign currency transactions and balances

          Transaksi dalam mata uang asing dicatat                             Transactions involving foreign currencies are recorded
          berdasarkan kurs yang berlaku pada saat transaksi                   at the rates of exchange prevailing at the time the
          dilakukan. Pada tanggal laporan, aset dan liabilitas                transactions are made. At reporting date, monetary
          moneter dalam mata uang asing disesuaikan ke                        assets and liabilities denominated in foreign currencies
          dalam Rupiah berdasarkan kurs rata-rata Bank                        are adjusted to Rupiah based on the average rates of
          Indonesia yang berlaku pada tanggal tersebut. Laba                  exchange published by Bank Indonesia at that date.
          atau rugi kurs yang terjadi, dikreditkan atau                       The resulting gains or losses are credited or charged to
          dibebankan pada laba rugi tahun berjalan.                           the current year operations.

          Pada tanggal 31 Desember 2024 dan 2023, kurs                        As of December 31, 2024 and 2023, the middle rates
          tengah yang diterbitkan Bank Indonesia mata uang                    published by Bank Indonesia of foreign currencies
          asing yang digunakan adalah sebagai berikut:                        used are as follows:

                                                       2024                    2023
          1 Dolar Amerika Serikat
               (“Dolar AS”)                                16,162                   15,416           United States Dollar 1 (“US Dollar”)
          1 Yuan China (“CNY”)                              2,214                    2,170                       Chinese Yuan 1 (“CNY”)
          1 Dolar Singapura (“SGD”)                        11,919                   11,712                    Singapore Dollar 1 (“SGD”)
          1 Euro (“Euro”)                                  16,851                   17,140                                Euro 1 (“Euro”)
          1 Poundsterling Inggris (“GBP”)                  20,333                   19,760          Great Britain Poundsterling 1 (“GBP”)

     h.   Transaksi dengan pihak-pihak berelasi                          h.   Transactions with related parties

          Grup memiliki transaksi dengan pihak berelasi                       The Group has transactions with related parties as
          sebagaimana yang didefinisikan dalam PSAK 224                       defined under PSAK 224 “Related Party Disclosures”.
          “Pengungkapan Pihak-pihak Berelasi”.

          Transaksi ini dilakukan berdasarkan persyaratan                     The transactions are made based on terms agreed by
          yang disetujui oleh kedua belah pihak.                              the parties.

          Seluruh transaksi dan saldo yang material dengan                    All material transactions and balances with related
          pihak-pihak berelasi diungkapkan dalam catatan atas                 parties are disclosed in the relevant notes to the
          laporan keuangan konsolidasian yang relevan.                        consolidated financial statements.

     i.   Instrumen keuangan                                             i.   Financial instruments

          Instrumen keuangan adalah setiap kontrak yang                       A financial instrument is any contract that gives rise to
          menimbulkan aset keuangan pada satu entitas dan                     a financial asset of one entity and a financial liability or
          liabilitas keuangan atau instrumen ekuitas pada                     equity instrument of another entity.
          entitas lain.

          Aset keuangan dan liabilitas keuangan diakui pada                   Financial assets and financial liabilities are recognized
          laporan posisi keuangan konsolidasian pada saat                     on the consolidated statement of financial position
          Grup menjadi salah satu pihak dalam ketentuan                       when the Group becomes a party to the contractual
          kontraktual instrumen tersebut.                                     provisions of the instrument.

          (i)   Aset keuangan                                                 (i)     Financial assets

                Pengakuan dan pengukuran awal                                       Initial recognition and measurement

                Grup mengklasifikasikan aset keuangan dalam                         The Group classifies its financial assets into the
                kategori berikut ini:                                               following categories.

                (i)   aset keuangan diukur pada biaya                               (i) financial assets measured at amortised cost;
                      perolehan diamortisasi;                                       (ii) financial assets measured at fair value either
                (ii) aset keuangan diukur pada nilai wajar                                through profit or loss (“FVTPL”); and
                      melalui laba rugi (“FVTPL”); dan                              (iii) financial assets measured at fair value
                (iii) aset keuangan diukur pada nilai wajar                               through    other     comprehensive    income
                      melalui penghasilan komprehensif lain                               (“FVOCI”).
                      (“FVOCI”).

                                                                 21
Page 232
                                                                           The original consolidated financial statements included herein are in
                                                                                                                      the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                       PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                                  AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                    NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                                FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                              As of December 31, 2024
                  Pada Tanggal Tersebut                                                and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                         (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                               unless otherwise stated)

3.   INFORMASI     KEBIJAKAN            AKUNTANSI         YANG       3.   MATERIAL ACCOUNTING                   POLICY       INFORMATION
     MATERIAL (lanjutan)                                                  (continued)

     i.   Instrumen keuangan (lanjutan)                                   i.   Financial instruments (continued)

          (i)   Aset keuangan (lanjutan)                                       (i)    Financial assets (continued)

                Pengakuan dan pengukuran awal (lanjutan)                             Initial recognition and measurement (continued)

                Klasifikasi ini tergantung pada model bisnis Grup                    The classification depends on the Group’s
                dan persyaratan kontraktual arus kas - apakah                        business model and the contractual terms of the
                penentuan arus kasnya semata-mata dari                               cash flows when determining whether their cash
                pembayaran pokok dan bunga.                                          flows are solely payment of principal and interest.

                Grup menentukan klasifikasi aset keuangan                            The Group determines the classification of its
                pada pengakuan awal. Untuk investasi pada                            financial assets at initial recognition. For
                instrumen utang, hal ini akan bergantung pada                        investments in debt instruments, this will depend
                model bisnis dimana investasi tersebut                               on the business model in which the investment is
                diadakan. Grup mereklasifikasi investasi pada                        held. The Group reclassifies investments in debt
                instrumen utang jika dan hanya jika model bisnis                     instruments when and only when its business
                untuk mengelola aset tersebut berubah.                               model for managing those assets changes.

                Pada tanggal 31 Desember 2024 dan 2023,                              As of December 31, 2024 and 2023, the Group
                Grup memiliki aset keuangan yang diukur pada                         has financial assets measured at amortised costs,
                biaya perolehan diamortisasi, yang terdiri dari                      which comprise cash and cash equivalents,
                kas dan setara kas, kas di bank dan deposito                         restricted cash in bank and time deposits, short-
                berjangka yang dibatasi penggunaannya,                               term investments, trade receivables and other
                investasi jangka pendek, piutang usaha dan                           receivables, financial assets measured at fair
                piutang lain-lain, aset keuangan yang diukur                         value through other comprehensive income, which
                pada     nilai     wajar    melalui   penghasilan                    comprise of investment in government bonds and
                komprehensif lain, yang terdiri dari investasi                       financial assets measured at fair value through
                pada surat utang negara, dan aset keuangan                           profit or loss, which comprise of investment in
                yang diukur pada nilai wajar melalui laba rugi,                      mutual funds.
                yang terdiri dari investasi reksa dana.

                -    Aset keuangan diukur          pada    biaya                     -     Financial assets held at amortised cost
                     perolehan diamortisasi

                     Klasifikasi ini berlaku untuk instrumen                               This     classification    applies    to   debt
                     utang yang dikelola dalam model bisnis                                instruments which are held under a “hold to
                     “dimiliki untuk mendapatkan arus kas” dan                             collect” business model and which have
                     memiliki arus kas yang memenuhi kriteria                              cash flows that meet the “solely payments of
                     “semata-mata dari pembayaran pokok dan                                principal and interest” (“SPPI”) criteria.
                     bunga”.

                     Pada pengakuan awal, aset keuangan                                    At initial recognition, financial assets that do
                     yang tidak memiliki komponen pendanaan                                not have a significant financing component
                     yang signifikan, diakui sebesar harga                                 are recognised at their transaction price.
                     transaksi. Aset keuangan lainnya awalnya                              Other financial assets are initially recognised
                     diakui sebesar nilai wajar dikurangi biaya                            at fair value less related transaction costs.
                     transaksi yang terkait. Aset keuangan ini                             They are subsequently measured at
                     selanjutnya diukur sebesar biaya perolehan                            amortised cost using the effective interest
                     diamortisasi menggunakan metode suku                                  rate (“EIR”) method. Any gains or losses on
                     bunga efektif (“EIR”). Keuntungan atau                                derecognition or modification of a financial
                     kerugian pada penghentian atau modifikasi                             asset held at amortised cost are recognised
                     aset keuangan yang dicatat yang dicatat                               in profit or loss.
                     pada biaya perolehan diamortisasi diakui
                     pada laba rugi.




                                                                    22
Page 233
                                                                          The original consolidated financial statements included herein are in
                                                                                                                     the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                      PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                                 AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                   NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                               FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                             As of December 31, 2024
                  Pada Tanggal Tersebut                                               and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                        (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                              unless otherwise stated)
 [




3.   INFORMASI     KEBIJAKAN          AKUNTANSI         YANG        3.   MATERIAL ACCOUNTING                   POLICY       INFORMATION
     MATERIAL (lanjutan)                                                 (continued)

     i.   Instrumen keuangan (lanjutan)                                  i.   Financial instruments (continued)

          (i)   Aset keuangan (lanjutan)                                      (i)    Financial assets (continued)

                Pengakuan dan pengukuran awal (lanjutan)                            Initial recognition and measurement (continued)

                -   Aset keuangan diukur pada nilai wajar                           -      Financial assets held at FVOCI
                    melalui penghasilan komprehensif lain

                    Klasifikasi ini berlaku untuk instrumen                               This     classification   applies to   debt
                    utang yang dikelola dengan model bisnis                               instruments that are held under a business
                    yang bertujuan untuk memiliki aset                                    model where they are held for collection of
                    keuangan dalam rangka mendapatkan arus                                contractual cash flows and also for sale
                    kas kontraktual dan menjual dan di mana                               (“collect and sell”) and which have cash
                    arus kasnya memenuhi kriteria “semata-                                flows that meet the “solely payments of
                    mata dari pembayaran pokok dan bunga”.                                principal and interest” criteria.

                    Perubahan nilai wajar aset keuangan ini                               All movements in the fair value of these
                    dicatat pada penghasilan komprehensif                                 financial assets are taken through other
                    lain, kecuali pengakuan keuntungan atau                               comprehensive income, except for the
                    kerugian penurunan nilai, pendapatan                                  recognition of impairment gains or losses,
                    bunga     (termasuk     biaya      transaksi                          interest (including transaction costs by
                    menggunakan metode EIR), keuntungan                                   revenue applying the effective interest
                    atau kerugian yang timbul dari penghentian                            method), gains or losses arising on
                    dan keuntungan dan kerugian dari selisih                              derecognition and foreign exchange gains
                    kurs diakui pada laba rugi. Ketika aset                               and losses which are recognised in profit or
                    keuangan dihentikan, keuntungan atau                                  loss. When the financial asset is
                    kerugian nilai wajar kumulatif yang                                   derecognised, the cumulative fair value
                    sebelumnya diakui pada penghasilan                                    gains or losses previously recognised in
                    komprehensif lain direklasifikasi pada laba                           other comprehensive income is reclassified
                    rugi.                                                                 to profit or loss.

                -   Aset keuangan diukur pada nilai wajar                           -     Financial assets at fair value through profit or
                    melalui laba rugi                                                     loss

                    Aset yang tidak memenuhi kriteria untuk                               Assets that do not meet the criteria for
                    biaya perolehan diamortisasi atau nilai                               amortised cost or FVOCI are measured at
                    wajar melalui penghasilan komprehensif                                fair value through profit or loss. A gain or
                    lain diukur pada nilai wajar melalui laporan                          loss on investment in mutual funds that is
                    laba rugi. Keuntungan atau kerugian dari                              subsequently measured at fair value through
                    investasi reksa dana yang selanjutnya                                 profit or loss and is not part of a hedging
                    diukur pada nilai wajar melalui laporan laba                          relationship is recognised in profit or loss
                    rugi dan bukan merupakan bagian dari                                  and presented net in the statement of profit
                    hubungan lindung nilai, diakui dalam                                  or loss within other gains/(losses) in the
                    laporan laba rugi dan disajikan bersih                                period in which it arises.
                    dalam laporan laba rugi di dalam
                    keuntungan/(kerugian)      lainnya     dalam
                    periode kemunculannya.

                Penghentian pengakuan                                               Derecognition

                Aset keuangan dihentikan pengakuannya ketika:                        A financial asset is derecognised when:

                -   hak untuk menerima arus kas dari aset                            -    the rights to receive cash flows from the
                    telah kedaluwarsa; atau                                               asset have expired; or




                                                                   23
Page 234
                                                                         The original consolidated financial statements included herein are in
                                                                                                                    the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                     PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                                AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                  NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                              FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                            As of December 31, 2024
                  Pada Tanggal Tersebut                                              and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                       (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                             unless otherwise stated)

3.   INFORMASI     KEBIJAKAN           AKUNTANSI       YANG        3.   MATERIAL ACCOUNTING                   POLICY       INFORMATION
     MATERIAL (lanjutan)                                                (continued)

     i.   Instrumen keuangan (lanjutan)                                 i.   Financial instruments (continued)

          (i)   Aset keuangan (lanjutan)                                     (i)    Financial assets (continued)

                Penghentian pengakuan (lanjutan)                                   Derecognition (continued)

                -   Grup telah mengalihkan haknya untuk                             -    the Group has transferred its rights to
                    menerima arus kas dari aset atau telah                               receive cash flows from the asset or has
                    mengasumsikan        kewajiban     untuk                             assumed an obligation to pay the received
                    membayar arus kas yang diterima secara                               cash flows in full without material delay to a
                    penuh tanpa penundaan material kepada                                third   party    under     a    ‘pass-through’
                    pihak ketiga berdasarkan pengaturan                                  arrangement; and either (a) the Group has
                    ‘pass-through’; dan salah satu (a) Grup                              transferred substantially all the risks and
                    telah mengalihkan secara substansial                                 rewards of the asset, or (b) the Group has
                    semua risiko dan manfaat aset, atau (b)                              neither transferred nor retained substantially
                    Grup tidak mengalihkan atau memiliki                                 all the risks and rewards of the asset, but
                    secara substansial seluruh risiko dan                                has transferred control of the asset.
                    manfaat aset, tetapi telah mengalihkan
                    pengendalian aset.

                Penurunan nilai                                                     Impairment

                Grup menilai berdasarkan basis forward looking                     The Group assesses on a forward-looking basis,
                untuk mengukur kerugian kredit ekspektasian                        the Expected Credit Losses (“ECL”) associated
                (“ECL”) terhadap aset keuangan yang diukur                         with its financial assets carried at amortised cost
                pada biaya perolehan diamortisasi dan dan nilai                    and FVOCI. The impairment method applied
                wajar melalui penghasilan komprehensif lain.                       depends on whether there has been a significant
                Metode penurunan nilai dilakukan dengan                            increase in credit risk.
                mempertimbangkan apakah risiko kredit telah
                meningkat secara signifikan.

                Pada setiap periode pelaporan, Grup menilai                        At each reporting date, the Group assesses
                apakah risiko kredit dari instrumen keuangan                       whether the credit risk on a financial instrument
                telah meningkat secara signifikan sejak                            has increased significantly since initial recognition.
                pengakuan awal. Ketika melakukan penilaian,                        When making the assessment, the Group uses
                Grup menggunakan perubahan atas risiko gagal                       the change in the risk of a default occurring over
                bayar yang terjadi sepanjang perkiraan usia                        the expected life of the financial instrument
                instrumen keuangan daripada perubahan atas                         instead of the change in the amount of ECL. To
                jumlah ECL. Dalam melakukan penilaian, Grup                        make that assessment, the Group compares the
                membandingkan antara risiko gagal bayar yang                       risk of a default occurring on the financial
                terjadi atas instrumen keuangan pada saat                          instrument as at the reporting date with the risk of
                periode pelaporan dengan risiko gagal bayar                        a default occurring on the financial instrument as
                yang terjadi atas instrumen keuangan pada saat                     at the date of initial recognition and considers
                pengakuan awal dan mempertimbangkan                                reasonable and supportable information, that is
                kewajaran serta ketersediaan informasi yang                        available without undue cost or effort at the
                tersedia pada saat tanggal pelaporan terkait                       reporting date about past events, current
                dengan kejadian masa lalu, kondisi terkini dan                     conditions and forecasts of future economic
                perkiraan atas kondisi ekonomi di masa depan,                      conditions, that is indicative of significant
                yang mengindikasikan kenaikan risiko kredit                        increases in credit risk since initial recognition.
                sejak pengakuan awal.

                Untuk piutang usaha dan piutang lain-lain tanpa                    For trade receivables and other receivables
                komponen pendanaan yang signifikan, Grup                           without significant financing components, the
                menerapkan pendekatan yang disederhanakan                          Group applies the simplified approach permitted
                yang diizinkan oleh PSAK 109, yang                                 by PSAK 109, which requires expected lifetime
                mensyaratkan ekspektasi kerugian seumur                            losses to be recognised from the initial recognition
                hidup harus diakui sejak pengakuan awal aset                       of the financial assets.
                keuangan.




                                                                  24
Page 235
                                                                           The original consolidated financial statements included herein are in
                                                                                                                      the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                        PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                                   AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                     NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                                 FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                               As of December 31, 2024
                  Pada Tanggal Tersebut                                                 and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                          (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                                unless otherwise stated)

3.   INFORMASI     KEBIJAKAN             AKUNTANSI       YANG        3.   MATERIAL ACCOUNTING                   POLICY       INFORMATION
     MATERIAL (lanjutan)                                                  (continued)

     i.   Instrumen keuangan (lanjutan)                                   i.   Financial instruments (continued)

          (i)    Aset keuangan (lanjutan)                                      (i)    Financial assets (continued)

                 Penurunan nilai (lanjutan)                                           Impairment (continued)

                 Grup menganggap aset keuangan gagal bayar                            The Group considers a financial asset in default
                 ketika pembayaran kontraktual telah lewat 90                         when contractual payments are 90 days past due.
                 hari. Namun, dalam kasus tertentu, Grup juga                         However, in certain cases, the Group may also
                 dapat mempertimbangkan aset keuangan                                 consider a financial asset to be in default when
                 mengalami gagal bayar ketika informasi internal                      internal or external information indicates that the
                 atau eksternal menunjukkan bahwa Grup tidak                          Group is unlikely to receive the outstanding
                 mungkin menerima jumlah kontraktual yang                             contractual amounts in full before taking into
                 terutang      secara       penuh       sebelum                       account any credit enhancements held by the
                 memperhitungkan setiap peningkatan kredit                            Group. A financial asset is written off when there
                 yang dimiliki oleh Grup. Aset keuangan                               is no reasonable expectation of recovering the
                 dihapuskan jika tidak ada ekspektasi yang wajar                      contractual cash flows.
                 untuk memulihkan arus kas kontraktual.

                 Kas dan setara kas dan investasi jangka pendek                       Cash and cash equivalents and short-term
                 juga tunduk pada persyaratan penurunan nilai                         investments are also subject to impairment
                 PSAK 109. ECL didasarkan pada rating kredit                          requirements of PSAK 109. The ECL rates are
                 bank untuk mengestimasi kemungkinan gagal                            based on the bank’s credit rating to estimate the
                 bayar selama jangka waktu tertentu dan                               probability of default over a given time horizon
                 menggunakan referensi Basel II yang digunakan                        and utilise the commonly used Basel II reference
                 secara umum untuk mengestimasi kerugian                              to estimate the losses arising on default.
                 yang muncul dari gagal bayar.

          (ii)   Liabilitas keuangan                                           (ii)   Financial liabilities

                 Liabilitas keuangan diklasifikasikan sebagai                         Financial liabilities are classified as follows:
                 berikut: liabilitas keuangan yang diukur pada                        financial liabilities at fair value through profit or
                 nilai wajar melalui laba rugi dan liabilitas                         loss and financial liabilities at amortised cost.
                 keuangan yang diukur pada biaya perolehan
                 diamortisasi.

                 Pada tanggal 31 Desember 2024 dan 2023,                              As of December 31, 2024 and 2023, the Group
                 Grup hanya memiliki liabilitas keuangan yang                         only had financial liabilities measured at amortised
                 diukur sebesar biaya perolehan diamortisasi,                         cost, which comprise short-term bank loans, trade
                 yang terdiri dari pinjaman bank jangka pendek,                       payables, other payables, accrued expenses,
                 utang usaha, utang lain-lain, beban akrual,                          lease liabilities and customer guarantee.
                 liabilitas sewa, dan uang jaminan pelanggan.

                 Setelah pengakuan awal, yaitu pada nilai wajar                       After initial recognition which is at fair value plus
                 ditambah biaya transaksi, Grup mengukur                              transaction costs, the Group measures all
                 seluruh liabilitas keuangan pada biaya                               financial liabilities at amortised cost using the EIR
                 perolehan diamortisasi dengan menggunakan                            method. A financial liability is derecognised when
                 metode EIR. Liabilitas keuangan tidak diakui                         the obligation under the liability is discharged or
                 ketika liabilitas keuangan telah dilepaskan atau                     cancelled.
                 dibatalkan.




                                                                    25
Page 236
                                                                        The original consolidated financial statements included herein are in
                                                                                                                   the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                    PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                               AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                 NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                             FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                           As of December 31, 2024
                  Pada Tanggal Tersebut                                             and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                      (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                            unless otherwise stated)

3.   INFORMASI     KEBIJAKAN          AKUNTANSI       YANG        3.   MATERIAL ACCOUNTING                   POLICY       INFORMATION
     MATERIAL (lanjutan)                                               (continued)

     i.   Instrumen keuangan (lanjutan)                                i.   Financial instruments (continued)

          (iii) Saling hapus instrumen keuangan                             (iii) Offsetting of financial instruments

              Aset keuangan dan liabilitas keuangan                               Financial assets and liabilities are offset and the
              disalinghapuskan     dan    jumlah    netonya                       net amount is reported in the statement of
              dilaporkan pada laporan posisi keuangan ketika                      financial position when there is a legally
              terdapat hak yang berkekuatan hukum untuk                           enforceable right to offset the recognised amounts
              melakukan saling hapus atas jumlah yang telah                       and there is an intention to settle on a net basis,
              diakui tersebut dan adanya niat untuk                               or realise the asset and settle the liability
              menyelesaikan secara neto, atau untuk                               simultaneously.
              merealisasikan aset dan menyelesaikan liabilitas
              secara bersamaan.

              Hak saling hapus tidak kontinjen atas peristiwa                     The legally enforceable right must not be
              di masa depan dan dapat dipaksakan secara                           contingent on future events and must be
              hukum dalam situasi bisnis yang normal dan                          enforceable in the normal course of business and
              dalam peristiwa gagal bayar, atau peristiwa                         in the event of default in solvency or bankruptcy of
              kepailitan atau kebangkrutan Grup atau pihak                        the Group or the counterparty.
              lawan.

     j.   Kas dan setara kas                                           j.   Cash and cash equivalents

          Pada laporan arus kas konsolidasian, kas dan setara               In the consolidated statement of cash flows, cash and
          kas termasuk kas, kas di bank, dan deposito                       cash equivalents consist of cash on hand, cash in
          berjangka yang jatuh tempo dalam jangka waktu tiga                banks, and time deposits with original maturity periods
          bulan atau kurang sejak tanggal perolehan, yang                   of three months or less since the acquisition date,
          tidak digunakan sebagai jaminan atau tidak dibatasi               which are not pledged as collateral nor restricted for
          penggunaannya      dan     cerukan.    Setara   kas               use and bank overdrafts. Cash equivalents are defined
          didefinisikan sebagai investasi jangka pendek dan                 as short-term, highly liquid investments that are readily
          sangat likuid yang dapat dikonversi ke sejumlah kas               convertible into known amounts of cash and which are
          yang telah diketahui dan tidak memiliki risiko                    subject to insignificant risk of changes in value. In the
          perubahan nilai yang signifikan. Pada laporan posisi              consolidated statement of financial position, bank
          keuangan konsolidasian, cerukan disajikan bersama                 overdraft is shown within bank loans in current
          sebagai pinjaman bank dalam liabilitas jangka                     liabilities.
          pendek.

          Deposito berjangka dengan jangka waktu lebih dari 3               Time deposits with maturity period more than 3 (three)
          (tiga) bulan sampai 12 (dua belas) bulan disajikan                months up to 12 (twelve) months are presented as
          sebagai investasi jangka pendek dalam laporan                     short-term investments in the consolidated statement
          posisi keuangan konsolidasian.                                    of financial position.

     k.   Piutang usaha dan piutang lain-lain                          k.   Trade and other receivables

          Piutang usaha merupakan jumlah yang terutang dari                 Trade receivables are amounts due from customers for
          pelanggan atas penjualan barang dagangan atau                     merchandise sold or services performed in the ordinary
          jasa dalam kegiatan usaha normal. Piutang lain-lain               course of business. Other receivables are receivables
          merupakan saldo piutang yang timbul dari transaksi                arising from transactions outside of the ordinary course
          di luar kegiatan usaha biasa.                                     of business.

          Piutang usaha dan piutang lain-lain pada awalnya                  Trade and other receivables are recognised initially at
          diakui sebesar nilai wajar dan selanjutnya diukur                 fair value and subsequently measured at amortised
          pada biaya perolehan yang diamortisasi dengan                     cost using the EIR method, if the impact of discounting
          menggunakan metode EIR, apabila dampak                            is significant, less any provision for impairment.
          pendiskontoan signifikan, dikurangi provisi atas
          penurunan nilai.




                                                                 26
Page 237
                                                                         The original consolidated financial statements included herein are in
                                                                                                                    the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                     PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                                AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                  NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                              FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                            As of December 31, 2024
                  Pada Tanggal Tersebut                                              and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                       (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                             unless otherwise stated)

3.   INFORMASI     KEBIJAKAN          AKUNTANSI        YANG        3.   MATERIAL ACCOUNTING                   POLICY       INFORMATION
     MATERIAL (lanjutan)                                                (continued)

     k.   Piutang usaha dan piutang lain-lain (lanjutan)                k.   Trade and other receivables (continued)

          Jika piutang diperkirakan dapat ditagih dalam waktu                If collection of the receivables is expected in one year
          satu tahun atau kurang (atau dalam siklus operasi                  or less (or in the normal operating cycle of the business
          normal jika lebih panjang), piutang diklasifikasikan               if longer), they are classified as current assets. If not,
          sebagai aset lancar. Jika tidak, piutang disajikan                 they are presented as non-current assets.
          sebagai aset tidak lancar.

          Grup menerapkan pendekatan yang disederhanakan                     The Group applies the PSAK 109 simplified approach
          menurut PSAK 109 untuk mengukur ECL yang                           to measure ECL which uses a lifetime ECL for all trade
          menggunakan kerugian seumur hidup untuk semua                      and other receivables. To measure the ECL, trade and
          piutang usaha dan piutang lain-lain. Untuk mengukur                other receivables have been grouped based on shared
          ECL, piutang usaha dan piutang lain-lain                           credit risk characteristics and the receivables days past
          dikelompokkan berdasarkan karakteristik risiko kredit              due.
          bersama dan piutang yang telah lewat jatuh tempo.

          Lihat Catatan 3i untuk penurunan nilai aset                        Refer to Note 3i for impairment of financial assets,
          keuangan, termasuk piutang usaha dan piutang lain-                 including trade and other receivables.
          lain.

          Jumlah kerugian penurunan nilai diakui laba rugi.                  The amount of the impairment loss is recognised in
          Ketika piutang usaha yang mana cadangan                            profit or loss. When a trade receivable for which an
          penurunan nilai nya telah diakui menjadi tidak dapat               impairment allowance had been recognised becomes
          terkoleksi di periode selanjutnya, piutang tersebut                uncollectible in a subsequent period, it is written off
          dihapus-bukukan terhadap akun pencadangan nya.                     against the allowance account. Subsequent recoveries
          Pemulihan kemudian atas jumlah yang sebelumnya                     of amounts previously written-off are credited against
          dihapus-bukukan dikreditkan terhadap laba rugi.                    profit or loss.

     l.   Persediaan                                                    l.   Inventories

          Persediaan dinyatakan sebesar nilai yang lebih                     Inventories are stated at the lower of cost or net
          rendah antara biaya perolehan dan nilai realisasi                  realisable value.
          neto.

          Harga perolehan ditentukan dengan menggunakan                      Cost is determined using the weighted average
          metode rata-rata tertimbang. Harga perolehan barang                method. The cost of finished goods and work in
          jadi dan pekerjaan dalam proses terdiri dari bahan                 progress comprises raw materials, direct labour, other
          baku, tenaga kerja langsung, biaya langsung lainnya                direct costs and related production overheads (based
          dan biaya overhead produksi (berdasarkan kapasitas                 on normal operating capacity). It excludes borrowing
          normal operasi). Persediaan tidak mencakup biaya                   costs. Net realisable value is the estimated selling price
          pinjaman. Nilai realisasi neto adalah estimasi harga               in the ordinary course of business less the estimated
          penjualan dalam kegiatan usaha biasa, dikurangi                    costs of completion and the estimated costs necessary
          estimasi biaya penyelesaian dan estimasi biaya yang                to make the sale.
          dibutuhkan untuk melakukan penjualan.

          Penyisihan untuk persediaan lambat bergerak dan                    A provision for slow-moving inventories and
          usang dibuat berdasarkan telaah manajemen setiap                   obsolescence is made based on management’s review
          akhir tahun.                                                       at the end of the year.




                                                                  27
Page 238
                                                                        The original consolidated financial statements included herein are in
                                                                                                                   the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                     PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                                AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                  NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                              FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                            As of December 31, 2024
                  Pada Tanggal Tersebut                                              and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                       (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                             unless otherwise stated)

3.   INFORMASI     KEBIJAKAN         AKUNTANSI       YANG          3.   MATERIAL ACCOUNTING                  POLICY       INFORMATION
     MATERIAL (lanjutan)                                                (continued)

     m.   Aset tetap                                                    m.    Fixed assets

          Aset tetap pada awalnya diakui sebesar biaya                        Fixed assets are initially recognised at cost, which
          perolehan, yang terdiri atas harga perolehan dan                    comprises its purchase price and any additional costs
          biaya-biaya tambahan yang dapat diatribusikan                       directly attributable to bringing the asset to its working
          langsung untuk membawa aset ke lokasi dan kondisi                   condition and location for its intended use. Such cost
          yang diinginkan agar aset siap digunakan sesuai                     also includes the initial estimation of the costs of
          maksud manajemen. Biaya perolehan tersebut juga                     dismantling and removing the fixed assets and
          termasuk estimasi awal atas biaya pembongkaran                      restoring the sites and the cost of replacing part of
          dan pemindahan aset tetap dan pemulihan lokasi dan                  such fixed assets when that cost is incurred, if the
          biaya untuk mengganti komponen dari aset tetap                      recognition criteria are met.
          pada saat penggantian, bila kriteria pengakuan
          terpenuhi.

          Setelah pengakuan awal, aset tetap dinyatakan pada                  Subsequent to initial recognition, fixed assets are
          biaya perolehan dikurangi akumulasi penyusutan dan                  carried at cost less accumulated depreciation and
          kerugian penurunan nilai, jika ada.                                 impairment losses, if any.

          Aset     tetap,  kecuali tanah,   didepresiasi                      Fixed assets, except land, are depreciated using the
          menggunakan metode garis lurus berdasarkan                          straight-line method over their expected economic
          estimasi masa manfaat aset tetap dengan tahun                       useful lives at the following years:
          sebagai berikut:

                                                                Tahun/Years

          Bangunan dan prasarana                                  20 - 30                                   Buildings and improvements
          Mesin dan peralatan                                      4 - 16                                     Machinery and equipment
          Instalasi listrik                                        8 - 20                                          Electricity installations
          Kendaraan                                                4 - 10                                                          Vehicles
          Peralatan kantor                                         4 - 10                                               Office equipment

          Biaya pengurusan legal hak atas tanah ketika tanah                  Costs associated with the acquisition of legal right of
          diperoleh pertama kali diakui sebagai bagian dari                   land when the land was first acquired are recognized
          biaya perolehan aset tanah. Biaya pengurusan                        as part of the cost of land. Costs associated with the
          perpanjangan atau pembaharuan legal hak atas                        extension or renewal of legal right of land are
          tanah diakui sebagai aset takberwujud dan                           recognized as an intangible asset and amortized over
          diamortisasi sepanjang umur hukum hak atau umur                     the legal life of the land rights or economic life of the
          ekonomis tanah, mana yang lebih pendek.                             land, whichever is shorter.

          Grup menganalisis fakta dan keadaan untuk masing-                   The Group analyzes the facts and circumstances for
          masing jenis hak atas tanah dalam menentukan                        each type of land rights in determining the accounting
          akuntansi untuk masing-masing hak atas tanah                        for each of these land rights so that it can accurately
          tersebut sehingga dapat merepresentasikan dengan                    represent an underlying economic event or transaction.
          tepat suatu kejadian atau transaksi ekonomik yang                   If the land rights do not transfer control of the
          mendasarinya. Jika hak atas tanah tersebut tidak                    underlying assets to the Group, but gives the rights to
          mengalihkan pengendalian atas aset pendasar                         use the underlying assets, the Group applies the
          kepada Grup, melainkan mengalihkan hak untuk                        accounting treatment of these transactions as leases
          menggunakan aset pendasar, Grup menerapkan                          under PSAK 116, “Leases”. If land rights are
          perlakuan akuntansi atas transaksi tersebut sebagai                 substantially similar to land purchases, the Group
          sewa berdasarkan PSAK 116, “Sewa”. Jika hak atas                    applies PSAK 216, “Property, Plant and Equipment”.
          tanah secara substansi menyerupai pembelian tanah,
          maka Grup menerapkan PSAK 216, “Aset Tetap”.

          Tanah dicatat pada nilai revaluasian. Revaluasi                     Land is stated at its revalued amount. Revaluations are
          dilakukan dengan keteraturan yang cukup berkala                     performed with sufficient regularity such that the
          untuk memastikan bahwa jumlah yang tercatat tidak                   carrying amount is not materially different from that
          berbeda secara material dari jumlah yang ditentukan                 which would be determined using fair values at the
          dengan menggunakan nilai wajar pada tanggal                         consolidated statement of financial position.
          laporan posisi keuangan konsolidasian.


                                                                 28
Page 239
                                                                        The original consolidated financial statements included herein are in
                                                                                                                   the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                    PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                               AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                 NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                             FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                           As of December 31, 2024
                  Pada Tanggal Tersebut                                             and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                      (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                            unless otherwise stated)

3.   INFORMASI     KEBIJAKAN          AKUNTANSI        YANG        3.   MATERIAL ACCOUNTING                  POLICY       INFORMATION
     MATERIAL (lanjutan)                                                (continued)

     m.   Aset tetap (lanjutan)                                         m.   Fixed assets (continued)

          Surplus revaluasi aset tetap yang termasuk dalam                   The revaluation surplus included in equity is transferred
          ekuitas dipindahkan ke dalam saldo laba pada saat                  to retained earnings upon termination/disposal of
          penghentian/pelepasan        aset oleh    entitas.                 assets by the entity. Transfer of revaluation surplus to
          Pemindahan surplus revaluasi ke saldo laba tidak                   retained earnings is not made through profit or loss.
          dilakukan melalui laba rugi.

          Nilai tercatat atas aset tetap diestimasi apabila                  The carrying amount of fixed assets is estimated
          terdapat peristiwa atau perubahan keadaan yang                     whenever events or changes in circumstances indicate
          memberikan indikasi bahwa nilai perolehan mungkin                  that its carrying amount may not be fully recoverable.
          tidak sepenuhnya dapat diperoleh kembali.

          Jumlah tercatat aset tetap dihentikan pengakuannya                 An item of fixed assets is derecognised upon disposal
          pada saat dilepaskan atau saat tidak ada manfaat                   or when no future economic benefits are expected from
          ekonomis masa depan yang diharapkan dari                           its use or disposal. Any gain or loss arising on the
          penggunaan atau pelepasannya. Laba atau rugi yang                  derecognition of the asset (calculated as the difference
          timbul dari penghentian pengakuan aset (dihitung                   between the net disposal proceeds and the carrying
          sebagai perbedaan antara jumlah neto hasil                         amount of the asset) is included in profit or loss in the
          pelepasan dan jumlah tercatat dari aset) dimasukkan                year the asset is derecognised.
          dalam laba rugi pada tahun aset tersebut dihentikan
          pengakuannya.

          Pada setiap periode pelaporan, nilai residu, masa                  The asset’s residual values, useful lives and methods
          manfaat dan metode penyusutan direviu, dan jika                    of depreciation are reviewed and adjusted
          sesuai dengan keadaan, disesuaikan secara                          prospectively, if appropriate, at each reporting period.
          prospektif.

          Aset dalam penyelesaian dinyatakan sebesar harga                   Construction in progress is stated at cost. The
          perolehan. Akumulasi biaya perolehan akan                          accumulated cost will be transferred to the appropriate
          dipindahkan ke masing-masing akun aset tetap pada                  fixed asset account when the construction is completed
          saat aset tetap tersebut telah selesai dikerjakan dan              and the asset is ready for its intended use.
          siap untuk digunakan sesuai tujuannya.

          Beban pemeliharaan dan perbaikan dibebankan pada                   Repairs and maintenance expenses are expensed to
          laba rugi pada saat terjadinya. Beban pemugaran dan                profit or loss as incurred. The cost of major renovation
          penambahan dalam jumlah besar dikapitalisasi                       and restoration is included in the carrying amount of
          kepada nilai tercatat aset tetap terkait bila besar                the related fixed asset when it is probable that future
          kemungkinan bagi Grup manfaat ekonomi masa                         economic benefits in excess of the originally assessed
          depan menjadi lebih besar dari standar kinerja awal                standard of performance of the existing asset will flow
          yang ditetapkan sebelumnya dan disusutkan                          to the Group and is depreciated over the remaining
          sepanjang sisa masa manfaat aset tetap terkait, jika               useful life of the related asset, if any.
          ada.

     n.   Sewa                                                          n.   Leases

          Penentuan apakah suatu perjanjian merupakan, atau                  The determination of whether an arrangement is, or
          mengandung, sewa dibuat berdasarkan substansi                      contains, a lease is made based on the substance of
          perjanjian itu sendiri dan penilaian apakah                        the arrangement and assessment of whether fulfillment
          pemenuhan atas perjanjian bergantung dari                          of the arrangement is dependent on the use of a
          penggunaan aset tertentu atau aset, dan apakah                     specific asset or assets, and the arrangement conveys
          perjanjian memberikan hak untuk menggunakan aset.                  a right to use the asset.




                                                                  29
Page 240
                                                                         The original consolidated financial statements included herein are in
                                                                                                                    the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                     PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                                AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                  NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                              FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                            As of December 31, 2024
                  Pada Tanggal Tersebut                                              and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                       (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                             unless otherwise stated)
 [




3.   INFORMASI     KEBIJAKAN           AKUNTANSI        YANG        3.   MATERIAL ACCOUNTING                  POLICY       INFORMATION
     MATERIAL (lanjutan)                                                 (continued)

     n.   Sewa (lanjutan)                                                n.   Leases (continued)

          Sebagai Penyewa                                                     As Lessee

          Grup menerapkan satu pendekatan pengakuan dan                       The Group applies a single recognition and
          pengukuran untuk semua sewa, kecuali untuk sewa                     measurement approach for all leases, except for short-
          jangka pendek dan sewa aset bernilai-rendah. Grup                   term leases and leases of low-value assets. The Group
          mengakui    liabilitas sewa  untuk      melakukan                   recognises lease liabilities to make lease payments
          pembayaran sewa dan aset hak-guna yang                              and right-of-use assets representing the right to use
          merupakan hak untuk menggunakan aset pendasar.                      the underlying assets.

          Aset hak-guna                                                       Right-of-use assets

          Aset hak-guna diukur pada biaya perolehan, dimana                   The right-of-use asset is initially measured at cost,
          meliputi jumlah pengukuran awal liabilitas sewa yang                which comprises the initial amount of the lease liability
          disesuaikan dengan pembayaran sewa yang                             adjusted for any lease payment made at or before the
          dilakukan pada atau sebelum tanggal permulaan,                      commencement date, plus any initial direct cost
          ditambah dengan biaya langsung awal yang                            incurred and an estimate of costs to dismantle and
          dikeluarkan dan estimasi biaya yang akan                            remove the underlying asset or to restore the
          dikeluarkan untuk membongkar dan memindahkan                        underlying asset to the condition required by the terms
          aset pendasar atau untuk merestorasi aset pendasar                  and conditions of the lease, less any lease incentives
          ke kondisi yang disyaratkan dan ketentuan sewa,                     received.
          dikurangi dengan insentif sewa yang diterima.

          Aset hak-guna kemudian disusutkan menggunakan                       The right-of-use asset is subsequently depreciated
          metode garis lurus dari tanggal permulaan hingga                    using the straight-line method from the commencement
          tanggal yang lebih awal antara akhir umur manfaat                   date to the earlier of the end of the useful life of the
          aset hak-guna atau akhir masa sewa. Jika Grup                       right-of-use asset or the end of the lease term. If the
          cukup yakin untuk melaksanakan opsi pembelian,                      Group is reasonably certain to exercise a purchase
          aset hak-guna disusutkan selama masa manfaat aset                   option, the right-of-use asset is depreciated over the
          yang mendasarinya. Selain itu, aset hak-guna juga                   underlying asset’s useful life. In addition, the right-of-
          dikurangkan dengan kerugian penurunan nilai,                        use asset is reduced by impairment losses, if any, and
          apabila ada, dan disesuaikan untuk pengukuran                       adjusted for certain remeasurements of the lease
          kembali tertentu atas liabilitas sewa.                              liability.

          Liabilitas sewa                                                     Lease liabilities

          Liabilitas sewa diukur pada nilai kini pembayaran                   The lease liability is initially measured at the present
          sewa yang belum dibayar pada tanggal permulaan,                     value of the lease payments that are not paid at the
          didiskontokan dengan menggunakan suku bunga                         commencement date, discounted using the interest
          implisit dalam sewa atau jika suku bunga tersebut                   rate implicit in the lease or, if that rate cannot be readily
          tidak dapat ditentukan, maka menggunakan suku                       determined, using the incremental borrowing rate.
          bunga pinjaman inkremental. Pada umumnya, Grup                      Generally, the Group uses its incremental borrowing
          menggunakan suku bunga pinjaman inkremental                         rate as the discount rate.
          sebagai tingkat bunga diskonto.

          Pembayaran sewa yang termasuk dalam pengukuran                      Lease payments included in the measurement of the
          liabilitas sewa meliputi pembayaran tetap, termasuk                 lease liability comprise fixed payments, including in-
          pembayaran tetap secara substansi dikurangi dengan                  substance fixed payments less any lease incentive
          piutang insentif sewa. Pembayaran sewa yang harus                   receivable. Lease payments to be made under
          dilakukan berdasarkan opsi perpanjangan tertentu                    reasonably certain extension options are also included
          juga termasuk dalam pengukuran liabilitas.                          in the measurement of the liability.

          Setiap pembayaran sewa dialokasikan antara                          Each lease payment is allocated between the liability
          liabilitas dan beban keuangan. Utang sewa yang                      and the finance cost. The corresponding rental
          terkait,    dikurangi    dengan beban        keuangan,              obligations, net of finance cost, are included in “Lease
          dimasukkan ke dalam “Liabilitas sewa”. Elemen                       liabilities”. The finance cost is charged to profit or loss
          bunga dari beban keuangan dibebankan pada laba                      over the lease period so as to produce a constant
          rugi selama periode sewa sehingga menghasilkan                      periodic rate of interest on the remaining balance of the
          tingkat bunga periodik yang konstan untuk saldo                     liability for each period.
          liabilitas yang tersisa pada setiap periode.


                                                                   30
Page 241
                                                                       The original consolidated financial statements included herein are in
                                                                                                                  the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                   PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                              AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                            FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                          As of December 31, 2024
                  Pada Tanggal Tersebut                                            and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                     (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                           unless otherwise stated)

3.   INFORMASI     KEBIJAKAN          AKUNTANSI       YANG        3.   MATERIAL ACCOUNTING                  POLICY       INFORMATION
     MATERIAL (lanjutan)                                               (continued)

     n.   Sewa (lanjutan)                                              n.   Leases (continued)

          Sebagai Penyewa (lanjutan)                                        As Lessee (continued)

          Modifikasi sewa                                                   Lease modification

          Grup mencatat modifikasi sewa sebagai sewa                        The Group accounts for a lease modification as a
          terpisah jika kedua kondisi berikut terpenuhi:                    separate lease if both condition met:

          -   modifikasi meningkatkan ruang lingkup sewa                    -    the modification increases the scope of the lease
              dengan menambahkan hak untuk menggunakan                           by adding the right to use one or more underlying
              satu atau lebih aset yang mendasarinya; dan                        assets; and
          -   pembayaran sewa meningkat sebesar jumlah                      -    the consideration for the lease increases by an
              yang setara dengan harga yang berdiri sendiri                      amount commensurate with the stand-alone price
              untuk peningkatan ruang lingkup dan setiap                         for the increase in scope and any appropriate
              penyesuaian yang tepat atas harga yang berdiri                     adjustments to that stand-alone price to reflect the
              sendiri tersebut untuk mencerminkan keadaan                        circumstances of the particular contract.
              kontrak tertentu.

          Untuk modifikasi sewa yang tidak dicatat sebagai                  For a lease modification that is not accounted for as a
          sewa terpisah, pada tanggal efektif modifikasi sewa,              separate lease, at the effective date of the lease
          Grup:                                                             modification, the Group:

          -   mengukur      kembali   dan     mengalokasikan                -    remeasures and allocate the consideration in the
              pembayaran dalam kontrak yang dimodifikasi.                        modified contract.
          -   menentukan masa sewa dari sewa yang                           -    determines the lease term of the modified lease.
              dimodifikasi.
          -   mengukur kembali liabilitas sewa dengan                       -    remeasures the lease liability by discounting the
              mendiskontokan pembayaran sewa yang direvisi                       revised lease payments using a revised discount
              menggunakan tingkat diskonto yang direvisi                         rate on the basis of the remaining lease term and
              berdasarkan sisa masa sewa dan sisa                                the remaining lease payment with a corresponding
              pembayaran sewa dengan penyesuaian yang                            adjustment to the right-of-use assets. The revised
              sesuai dengan aset hak-guna. Tingkat diskonto                      discount rate is determined as the Group’s
              yang direvisi ditentukan sebagai suku bunga                        incremental borrowing rate at the effective date of
              pinjaman inkremental Grup pada tanggal efektif                     the modification.
              modifikasi.
          -   menurunkan nilai tercatat aset hak-guna untuk                 -    decreases the carrying amount of the right- of-use
              mencerminkan penghentian sebagian atau                             asset to reflect the partial or full termination of the
              seluruh sewa untuk modifikasi sewa yang                            lease for lease modifications that decrease the
              mengurangi ruang lingkup sewa. Grup mengakui                       scope of the lease. The Group recognises in profit
              dalam laporan laba rugi setiap keuntungan atau                     or loss any gain or loss relating to the partial or full
              kerugian yang berkaitan dengan penghentian                         termination of the lease, and
              sebagian atau seluruh sewa, dan
          -   membuat penyesuaian yang sesuai dengan aset                   -    makes a corresponding adjustment to the right-of-
              hak-guna untuk semua modifikasi sewa lainnya.                      use asset for all other lease modifications.

          Sewa jangka pendek dan sewa aset bernilai rendah                  Short-term leases and leases of low-value assets

          Grup memilih untuk tidak mengakui aset hak-guna                   The Group elected not to recognise right-of-use assets
          dan liabilitas sewa untuk sewa jangka pendek yang                 and lease liabilities for short-term leases which have a
          memiliki masa sewa 12 bulan atau kurang sejak                     lease term of 12 months or less from the
          tanggal permulaan dan tidak mengandung opsi                       commencement date and do not contain a purchase
          pembelian dan aset bernilai-rendah. Pembayaran                    option and low-value assets. Lease payments on short-
          sewa untuk sewa jangka pendek dan sewa atas aset                  term leases and leases of low-value assets are
          bernilai rendah diakui sebagai beban dengan metode                recognised as expense on a straight-line basis over the
          garis lurus selama masa sewa.                                     lease term.




                                                                 31
Page 242
                                                                           The original consolidated financial statements included herein are in
                                                                                                                      the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                         PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                                    AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                      NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                                  FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                                As of December 31, 2024
                  Pada Tanggal Tersebut                                                  and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                           (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                                 unless otherwise stated)

3.   INFORMASI     KEBIJAKAN             AKUNTANSI        YANG        3.   MATERIAL ACCOUNTING                  POLICY       INFORMATION
     MATERIAL (lanjutan)                                                   (continued)

     n.   Sewa (lanjutan)                                                  n.   Leases (continued)

          Sebagai Pesewa                                                        As Lessor

          Pada sewa di mana Grup tidak mengalihkan secara                       Leases in which the Group does not transfer
          substansial semua risiko dan manfaat kepemilikan                      substantially all the risks and rewards of ownership of
          suatu aset diklasifikasikan sebagai sewa operasi.                     an asset are classified as operating leases. Rental
          Penghasilan sewa dari sewa operasi diakui secara                      income from operating leases is recognized on a
          garis lurus selama masa sewa yang relevan. Biaya                      straight-line basis over the terms of the relevant lease.
          langsung awal yang dikeluarkan untuk melakukan                        Initial direct costs incurred in negotiating and arranging
          negosiasi dan pengaturan sewa operasi ditambahkan                     an operating lease are added to the carrying amount of
          ke nilai tercatat dari aset sewaan dan diakui selama                  the leased asset and recognised over the lease term
          masa sewa dengan dasar yang sama dengan                               on the same basis as rental income. Contingent rents
          pendapatan sewa. Sewa kontinjen diakui sebagai                        are recognised as revenue in the period in which they
          pendapatan pada periode perolehan.                                    are earned.

     o.   Properti investasi                                               o.   Investment properties

          Properti yang dimiliki untuk disewakan dalam jangka                   Property that is held for long-term rental yield or for
          panjang atau untuk kenaikan harga atau keduanya,                      capital appreciation or both, and that is not occupied by
          dan yang tidak ditempati oleh entitas-entitas dalam                   the entities within the Group, is classified as investment
          Grup, diklasifikasikan sebagai properti investasi.                    property. Investment property also includes property
          Properti investasi juga mencakup properti yang                        that is being constructed or developed for future use as
          sedang dikonstruksi atau dikembangkan untuk                           an investment property.
          digunakan sebagai properti investasi di masa depan.

          Properti investasi awalnya diukur berdasarkan                         Investment property is measured initially at its cost,
          biayanya, termasuk biaya transaksi yang terkait dan                   including related transaction costs and where
          biaya pinjaman yang berlaku.                                          applicable borrowing costs.

          Setelah pengakuan awal, properti investasi dicatat                    After initial recognition, investment property is carried
          sebesar nilai wajarnya. Properti investasi yang                       at fair value. Investment property that is being
          sedang     dalam pengembangan           ulang   untuk                 redeveloped for continuing use as an investment
          penggunaan lebih lanjut sebagai properti investasi                    property or for which the market has become less
          atau ketika pasar menjadi kurang aktif tetap dicatat                  active continues to be measured at fair value.
          sebesar nilai wajarnya. Properti investasi dalam                      Investment property under construction is measured at
          konstruksi diukur menggunakan nilai wajar jika nilai                  fair value if the fair value is considered to be reliably
          wajar dianggap dapat diukur secara andal. Properti                    determinable. Investment properties under construction
          investasi dalam konstruksi yang nilai wajarnya tidak                  for which the fair value cannot be determined reliably,
          dapat diukur secara andal, tetapi Perusahaan                          but for which the Company expects that the fair value
          mengharapkan nilai wajarnya dapat diukur secara                       of the property will be reliably determinable when
          andal ketika konstruksi selesai, diukur senilai biaya                 construction is completed, are measured at cost less
          dikurangi penurunan nilai sampai nilai wajarnya dapat                 impairment until the fair value becomes reliably
          diukur secara andal atau konstruksi diselesaikan -                    determinable or construction is completed - whichever
          yang mana yang lebih awal.                                            is earlier.

          Properti investasi Grup terdiri dari:                                 Investment properties of the Group consist of the
                                                                                following:

          (i)    Tanah                                                          (i)    Land

                 Merupakan tanah yang belum ditentukan tujuan                          Represents land that its intended use has not
                 penggunaannya dan tidak untuk digunakan                               been determined yet and is not for use in the
                 dalam produksi atau penyediaan barang atau                            production or supply of goods or services or for
                 jasa untuk tujuan administratif atau dijual dalam                     administrative purposes or sale in the ordinary
                 kegiatan usaha sehari-hari.                                           course of business.

          (ii)   Bangunan                                                       (ii)   Building

                 Merupakan     gedung      perkantoran       yang                      Represents office buildings rented to other
                 disewakan kepada pihak lain.                                          parties.



                                                                     32
Page 243
                                                                          The original consolidated financial statements included herein are in
                                                                                                                     the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                      PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                                 AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                   NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                               FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                             As of December 31, 2024
                  Pada Tanggal Tersebut                                               and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                        (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                              unless otherwise stated)

3.   INFORMASI     KEBIJAKAN           AKUNTANSI         YANG        3.   MATERIAL ACCOUNTING                  POLICY       INFORMATION
     MATERIAL (lanjutan)                                                  (continued)

     o.   Properti investasi (lanjutan)                                   o.   Investment properties (continued)

          Nilai wajar didasarkan kepada harga pasar aktif,                     Fair value is based on active market prices, adjusted, if
          disesuaikan, jika perlu, dengan perbedaan alam,                      necessary, for differences in the nature, location or
          lokasi atau kondisi dari aset tersebut. Jika informasi               condition of the specific asset. If this information is not
          tersebut tidak tersedia, Grup menggunakan metode                     available, the Group uses alternative valuation
          penilaian alternatif, seperti harga terbaru di pasar                 methods, such as recent prices on less active markets
          yang kurang aktif atau proyeksi arus kas yang                        or discounted cash flow projections. Valuations are
          didiskontokan. Penilaian dilakukan pada tanggal                      performed as of the financial position date by
          neraca oleh penilai ahli dengan kualifikasi yang diakui              professional valuers who hold recognised and relevant
          dan relevan dan memiliki pengalaman terbaru atas                     professional qualifications and have recent experience
          lokasi dan kategori dari properti investasi dinilai.                 in the location and category of the investment property
          Penilaian ini membentuk dasar untuk nilai tercatat                   being valued. These valuations form the basis for the
          pada laporan keuangan konsolidasian. Perubahan                       carrying amounts in the consolidated financial
          nilai wajar diakui di laba rugi sebagai bagian dari                  statements. Changes in the fair value are recognised in
          “Penghasilan (beban) lain-lain - neto”.                              profit or loss as part of “Other income (expenses) -
                                                                               net”.

          Properti investasi dihentikan pengakuannya baik saat                 Investment properties are derecognised either when
          dilepas atau ketika tidak digunakan lagi secara                      they have been disposed of or when they are
          permanen dan tidak memiliki manfaat ekonomis                         permanently withdrawn from use and no future
          masa depan yang diharapkan dari pelepasannya.                        economic benefit is expected from their disposal. The
          Selisih antara hasil neto pelepasan dan nilai tercatat               difference between the net disposal proceeds and the
          aset diakui dalam laba rugi pada periode terjadinya                  carrying amount of the asset is recognised in profit or
          penghentian pengakuan.                                               loss in the period of derecognition.

          Pengalihan dilakukan ke (atau dari) properti investasi               Transfers are made to (or from) investment property
          hanya jika terdapat perubahan penggunaan. Untuk                      only when there is a change in use. For a transfer from
          pengalihan dari properti investasi ke properti yang                  investment property to owner-occupied property, the
          digunakan sendiri, biaya yang dianggap untuk                         deemed cost for subsequent accounting is the fair
          akuntansi selanjutnya adalah nilai wajar pada tanggal                value at the date of change in use. If an owner-
          perubahan penggunaan. Jika properti yang                             occupied property becomes an investment property,
          digunakan sendiri menjadi properti investasi, Grup                   the Group accounts for such property in accordance
          memperhitungkan properti tersebut sesuai dengan                      with the policy stated under fixed assets up to the date
          kebijakan yang tercantum dalam aset tetap sampai                     of change in use.
          dengan tanggal perubahan yang digunakan.

     p.   Aset takberwujud                                                p.   Intangible assets

          Biaya yang terkait dengan pemeliharaan program                       Costs associated with maintaining computer software
          piranti lunak komputer diakui sebagai beban pada                     programs are recognised as an expense as incurred.
          saat terjadinya. Biaya pengembangan yang dapat                       Development costs that are directly attributable to the
          secara langsung diatribusikan kepada desain dan                      design and testing of identifiable and unique software
          pengujian produk piranti lunak yang dapat                            products controlled by the Group are recognised as
          diidentifikasi dan unik yang dikendalikan oleh Grup                  intangible assets. Computer software development
          diakui      sebagai    aset   takberwujud.    Biaya                  costs recognised as assets are amortised over their
          pengembangan piranti lunak komputer diakui sebagai                   estimated useful lives.
          aset yang diamortisasi selama estimasi masa
          manfaat.

     q.   Penurunan nilai aset non-keuangan                               q.   Impairment of non-financial assets

          Pada setiap akhir periode pelaporan, Grup menilai                    The Group assesses at each reporting period whether
          apakah terdapat indikasi suatu aset mengalami                        there is an indication that an asset may be impaired. If
          penurunan nilai. Jika terdapat indikasi tersebut atau                any such indication exists, or when annual impairment
          pada saat pengujian penurunan nilai aset diperlukan                  testing for an asset is required (i.e. an intangible asset
          (yaitu aset takberwujud dengan umur manfaat tidak                    with an indefinite useful life, an intangible asset not yet
          terbatas, aset takberwujud yang belum dapat                          available for use, or goodwill acquired in a business
          digunakan, atau goodwill yang diperoleh dalam suatu                  combination), the Group makes an estimate of the
          kombinasi bisnis), maka Grup membuat estimasi                        asset’s recoverable amount.
          jumlah terpulihkan aset tersebut.

                                                                    33
Page 244
                                                                           The original consolidated financial statements included herein are in
                                                                                                                      the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                       PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                                  AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                    NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                                FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                              As of December 31, 2024
                  Pada Tanggal Tersebut                                                and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                         (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                               unless otherwise stated)

3.   INFORMASI     KEBIJAKAN            AKUNTANSI         YANG        3.   MATERIAL ACCOUNTING                  POLICY       INFORMATION
     MATERIAL (lanjutan)                                                   (continued)

     q.   Penurunan nilai aset non-keuangan (lanjutan)                     q.   Impairment of non-financial assets (continued)

          Jumlah terpulihkan yang ditentukan untuk aset                         An asset’s recoverable amount is the higher of the
          individual adalah jumlah yang lebih tinggi antara nilai               asset’s or its cash-generating unit’s fair value less
          wajar aset atau unit penghasil kas dikurangi biaya                    costs to sell and its value in use, and is determined for
          untuk menjual dengan nilai pakainya, kecuali aset                     an individual asset, unless the asset does not generate
          tersebut tidak menghasilkan arus kas masuk yang                       cash inflows that are largely independent of those from
          sebagian besar independen dari aset atau kelompok                     other assets or groups of assets. Where the carrying
          aset lain. Jika nilai tercatat aset lebih besar daripada              amount of an asset exceeds its recoverable amount,
          nilai terpulihkannya, maka aset tersebut mengalami                    the asset is considered impaired and is written down to
          penurunan nilai dan nilai tercatat aset diturunkan                    its recoverable amount and an impairment loss is
          menjadi sebesar nilai terpulihkannya dan rugi                         recognized immediately in profit or loss, unless the
          penurunan nilai segera diakui dalam laba rugi, kecuali                relevant asset is carried at revalued amount, in which
          aset tersebut disajikan pada jumlah revaluasian, di                   the impairment loss is treated as a revaluation
          mana kerugian penurunan nilai diperlakukan sebagai                    decrease.
          penurunan revaluasi.

          Dalam menghitung nilai pakai, estimasi arus kas                       In assessing the value in use, the estimated net future
          masa depan neto didiskontokan ke nilai kini dengan                    cash flows are discounted to their present value using
          menggunakan tingkat diskonto sebelum pajak yang                       a pre-tax discount rate that reflects current market
          menggambarkan penilaian pasar terkini atas nilai                      assessments of the time value of money and the risks
          waktu dari uang dan risiko spesifik dari aset. Dalam                  specific to the asset. In determining fair value less
          menentukan nilai wajar dikurangi biaya untuk                          costs to sell, recent market transactions are taken into
          menjual, digunakan harga penawaran pasar terakhir,                    account, if available. If no such transactions can be
          jika tersedia. Jika tidak terdapat transaksi tersebut,                identified, an appropriate valuation model is used to
          Grup menggunakan model penilaian yang sesuai                          determine the fair value of the assets. These
          untuk menentukan nilai wajar aset. Perhitungan-                       calculations are corroborated by valuation multiples or
          perhitungan ini dikuatkan oleh penilaian berganda                     other available fair value indicators.
          atau indikasi nilai wajar yang tersedia.

          Penilaian dilakukan pada akhir setiap periode                         An assessment is made at each annual reporting
          pelaporan tahunan apakah terdapat indikasi bahwa                      period as to whether there is any indication that
          rugi penurunan nilai yang telah diakui dalam periode                  previously recognized impairment losses recognized
          sebelumnya untuk aset selain goodwill mungkin tidak                   for an asset other than goodwill may no longer exist or
          ada lagi atau mungkin telah menurun. Jika indikasi                    may have decreased. If such indication exists, the
          dimaksud ditemukan, maka entitas mengestimasi                         recoverable amount is estimated.
          jumlah terpulihkan aset tersebut.

          Kerugian penurunan nilai yang telah diakui dalam                      A previously recognized impairment loss for an asset
          periode sebelumnya untuk aset selain goodwill dibalik                 other than goodwill is reversed only if there has been a
          hanya jika terdapat perubahan asumsi-asumsi yang                      change in the assumptions used to determine the
          digunakan untuk menentukan jumlah terpulihkan aset                    asset’s recoverable amount since the last impairment
          tersebut sejak rugi penurunan nilai terakhir diakui.                  loss was recognized. If that is the case, the carrying
          Dalam hal ini, jumlah tercatat aset dinaikkan ke                      amount of the asset is increased to its recoverable
          jumlah terpulihkannya. Pembalikan tersebut dibatasi                   amount. The reversal is limited so that the carrying
          sehingga jumlah tercatat aset tidak melebihi jumlah                   amount of the asset does not exceed its recoverable
          terpulihkannya maupun jumlah tercatat, neto setelah                   amount, nor exceeds the carrying amount that would
          penyusutan, seandainya tidak ada rugi penurunan                       have been determined, net of depreciation, had no
          nilai yang telah diakui untuk aset tersebut pada tahun                impairment loss been recognized for the asset in prior
          sebelumnya. Pembalikan rugi penurunan nilai diakui                    years. Reversal of an impairment loss is recognized in
          dalam laporan laba rugi dan penghasilan                               the consolidated statement of profit or loss and other
          komprehensif lain konsolidasian, kecuali aset yang                    comprehensive income, unless the relevant asset is
          bersangkutan disajikan pada jumlah revaluasian,                       carried at a revalued amount, in which case the
          dalam hal ini pembalikan kerugian penurunan nilai                     reversal of the impairment loss is treated as a
          diperlakukan sebagai kenaikan revaluasi. Setelah                      revaluation increase. After such a reversal, the
          pembalikan tersebut, penyusutan aset tersebut                         depreciation charge on the said asset is adjusted in
          disesuaikan      di    periode    mendatang      untuk                future periods to allocate the asset’s revised carrying
          mengalokasikan jumlah tercatat aset yang direvisi,                    amount, less any residual value, on a systematic basis
          dikurangi nilai sisanya, dengan dasar yang sistematis                 over its remaining useful life.
          selama sisa umur manfaatnya.


                                                                     34
Page 245
                                                                           The original consolidated financial statements included herein are in
                                                                                                                      the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                       PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                                  AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                    NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                                FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                              As of December 31, 2024
                  Pada Tanggal Tersebut                                                and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                         (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                               unless otherwise stated)

3.   INFORMASI     KEBIJAKAN            AKUNTANSI        YANG        3.   MATERIAL ACCOUNTING                   POLICY       INFORMATION
     MATERIAL (lanjutan)                                                  (continued)

     r.   Utang usaha dan utang lain-lain                                 r.   Trade and other payables

          Utang usaha adalah kewajiban membayar barang                         Trade payables are obligations to pay for goods or
          atau jasa yang telah diterima dalam kegiatan usaha                   services that have been acquired in the ordinary
          biasa dari pemasok. Utang lain-lain merupakan saldo                  course of business from suppliers. Other payables are
          utang yang timbul dari transaksi di luar kegiatan                    payables arising from transactions outside of the
          usaha biasa.                                                         ordinary course of business.

          Utang usaha dan utang lain-lain diklasifikasikan                     Trade and other payables are classified as current
          sebagai liabilitas jangka pendek jika pembayarannya                  liabilities if payment is due within one year or less (or in
          jatuh tempo dalam waktu satu tahun atau kurang                       the normal operating cycle of the business if longer). If
          (atau dalam siklus operasi normal jika lebih panjang).               not, they are presented as non-current liabilities.
          Jika tidak, utang tersebut disajikan sebagai liabilitas
          jangka panjang.

          Utang usaha dan utang lain-lain pada awalnya diakui                  Trade and other payables are recognised initially at fair
          sebesar nilai wajar dan selanjutnya diukur pada biaya                value and subsequently measured at amortised cost
          perolehan yang diamortisasi dengan menggunakan                       using the EIR method.
          metode EIR.

     s.   Imbalan kerja                                                   s.   Employee benefits

          Imbalan kerja jangka pendek                                          Short-term employee benefits

          Imbalan kerja jangka pendek adalah imbalan kerja                     Short-term employee benefits are employee benefits
          yang jatuh tempo dalam jangka waktu dua belas                        which are due for payment within twelve months after
          bulan setelah akhir periode pelaporan dan diakui                     the reporting period and recognized when the
          pada saat pekerja telah memberikan jasa kerjanya.                    employees have rendered this related service.
          Kewajiban diakui ketika karyawan memberikan jasa                     Liabilities are recognized when the employee renders
          kepada Grup dimana semua perubahan pada nilai                        services to the Group where all changes in the carrying
          bawaan dari kewajiban diakui pada laba rugi.                         amount of the liability are recognized in profit or loss.

          Imbalan pascakerja program imbalan pasti                             Defined benefit plan

          Grup mengakui kewajiban imbalan kerja yang tidak                     The Group recognized unfunded employee benefits
          didanai sesuai dengan Peraturan Pemerintah                           liability in accordance with Government Regulation in
          Pengganti Undang-Undang (Perppu) No. 2 tahun                         Lieu of Law (“Perppu”) No. 2 of 2022 on Job Creation
          2022 tentang Cipta Kerja yang kemudian disahkan                      which was later passed into Law No. 6 in 2023.
          menjadi Undang-Undang No. 6 tahun 2023. Beban                        Pension costs under the Group’s defined benefit
          pensiun berdasarkan program dana pensiun manfaat                     pension plans are determined by periodic actuarial
          pasti Grup ditentukan melalui perhitungan aktuaria                   calculation using the projected-unit-credit method and
          secara periodik dengan menggunakan metode                            applying the assumptions on discount rate and annual
          projected-unit credit dan menerapkan asumsi atas                     rate of increase in compensation.
          tingkat diskonto dan tingkat kenaikan manfaat pasti
          pensiun tahunan.

          Pengukuran kembali, terdiri dari keuntungan dan                      Remeasurement, comprising actuarial gains and
          kerugian aktuarial, dampak perubahan pada batas                      losses, the effect of the changes to the asset ceiling (if
          atas aset (jika ada) dan imbal hasil atas aset program               applicable) and the return on plan assets (excluding
          (tidak termasuk bunga), yang tercermin langsung                      interest), is reflected immediately in the consolidated
          dalam laporan posisi keuangan konsolidasian yang                     statement of financial position with a charge or credit
          dibebankan       atau     dikreditkan  diakui    dalam               recognized in other comprehensive income in the
          penghasilan komprehensif lain pada periode                           period in which they occur in order for the net pension
          terjadinya untuk mencerminkan aset atau liabilitas                   asset or liability recognized in the consolidated
          pensiun neto yang diakui pada laporan keuangan                       statement of financial position to reflect the full value of
          konsolidasian untuk mencerminkan nilai penuh dari                    the plan deficit and surplus. Remeasurement
          defisit dan surplus program. Pengukuran kembali                      recognized in other comprehensive income is reflected
          diakui sebagai pos terpisah pada penghasilan                         immediately as a separate item under other
          komprehensif lain di ekuitas dan tidak akan                          comprehensive income in equity and will not be
          direklasifikasi ke laba rugi.                                        reclassified to profit or loss.


                                                                    35
Page 246
                                                                          The original consolidated financial statements included herein are in
                                                                                                                     the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                      PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                                 AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                   NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                               FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                             As of December 31, 2024
                  Pada Tanggal Tersebut                                               and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                        (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                              unless otherwise stated)

3.   INFORMASI     KEBIJAKAN           AKUNTANSI         YANG        3.   MATERIAL ACCOUNTING                  POLICY       INFORMATION
     MATERIAL (lanjutan)                                                  (continued)

     s.   Imbalan kerja (lanjutan)                                        s.   Employee benefits (continued)

          Imbalan pascakerja program imbalan pasti (lanjutan)                  Defined benefit plan (continued)

          Biaya jasa lalu diakui dalam laba rugi ketika terjadi                Past service cost is recognized in profit or loss when
          amendemen program atau kurtailmen, atau ketika                       the plan amendment or curtailment occurs, or when the
          Grup mengakui biaya restrukturisasi terkait atau                     Group recognizes related restructuring costs or
          pesangon, jika lebih dahulu.                                         termination benefits, if earlier.

          Bunga neto dihitung dengan menggunakan tingkat                       Net interest is calculated by applying the discount rate
          diskonto terhadap liabilitas atau aset imbalan pasti                 to the net defined benefit liability or asset. Defined
          neto. Biaya imbalan pasti dikategorikan sebagai                      benefit costs are categorized as follows:
          berikut:

          •   Biaya jasa (termasuk biaya jasa kini, biaya jasa                 •   Service cost (including current service cost, past
              lalu serta keuntungan dan kerugian kurtailmen                        service cost, as well as gains and losses on
              dan penyelesaian)                                                    curtailments and settlements)
          •   Beban atau pendapatan bunga neto                                 •   Net interest expense or income
          •   Pengukuran kembali                                               •   Remeasurement

          Grup menyajikan dua komponen pertama dari biaya                      The Group presents the first two components of
          imbalan pasti di laba rugi. Keuntungan dan kerugian                  defined benefit costs in profit or loss. Curtailment gains
          kurtailmen dicatat sebagai biaya jasa lalu.                          and losses are accounted for as past service costs.

     t.   Akrual dan provisi                                              t.   Accruals and provisions

          Akrual dan provisi diakui jika Grup memiliki liabilitas              Accruals and provisions are recognised when the
          kini (baik bersifat hukum maupun bersifat konstruktif)               Group has a present obligation (legal or constructive)
          yang      akibat    peristiwa   masa     lalu,   besar               where, as a result of a past event, it is probable that an
          kemungkinannya penyelesaian liabilitas tersebut                      outflow of resources embodying economic benefits will
          mengakibatkan arus keluar sumber daya yang                           be required to settle the obligation and a reliable
          mengandung manfaat ekonomi dan estimasi yang                         estimate can be made of the amount of the obligation.
          andal mengenai jumlah kewajiban tersebut dapat                       Accruals and provisions are not recognised for future
          dibuat. Akrual dan provisi tidak diakui untuk kerugian               operating losses.
          operasi di masa mendatang.

          Akrual dan provisi diukur sebesar nilai kini dari                    Accruals and provisions are measured at the present
          estimasi terbaik manajemen atas pengeluaran yang                     value of management’s best estimate of the
          diperlukan untuk menyelesaikan kewajiban kini pada                   expenditure required to settle the present obligation at
          akhir periode pelaporan. Tingkat diskonto yang                       the end of the reporting period. The discount rate used
          digunakan untuk menentukan nilai kini adalah tingkat                 to determine the present value is a pretax rate that
          diskonto sebelum pajak yang mencerminkan                             reflects current market assessments of the time value
          penilaian pasar atas nilai waktu uang dan risiko yang                of money and the risks specific to the liability. The
          terkait dengan kewajiban. Peningkatan provisi karena                 increase in the provision due to the passage of time is
          berjalannya waktu diakui sebagai beban bunga.                        recognised as interest expense.

          Akrual dan provisi direviu pada setiap tanggal                       Accruals and provisions are reviewed at each reporting
          pelaporan dan disesuaikan untuk mencerminkan                         date and adjusted to reflect the current best estimate. If
          estimasi kini terbaik. Jika tidak terdapat kemungkinan               it is no longer probable that an outflow of resources
          arus kas keluar sumber daya yang mengandung                          embodying economic benefits will be required to settle
          manfaat ekonomi untuk menyelesaikan liabilitas                       the obligation, the provision is reversed.
          tersebut, provisi tersebut dibalik.




                                                                    36
Page 247
                                                                        The original consolidated financial statements included herein are in
                                                                                                                   the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                    PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                               AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                 NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                             FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                           As of December 31, 2024
                  Pada Tanggal Tersebut                                             and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                      (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                            unless otherwise stated)

3.   INFORMASI     KEBIJAKAN          AKUNTANSI        YANG        3.   MATERIAL ACCOUNTING                  POLICY       INFORMATION
     MATERIAL (lanjutan)                                                (continued)

     u.   Pinjaman                                                      u.   Borrowings

          Pinjaman diakui pada awalnya sebesar nilai wajar,                  Borrowings are recognised initially at fair value, net of
          dikurangi dengan biaya transaksi yang terjadi.                     transaction     costs    incurred.    Borrowings      are
          Pinjaman kemudian dicatat sebesar biaya perolehan                  subsequently carried at amortised cost; any difference
          yang diamortisasi; selisih antara hasil perolehan                  between the proceeds (net of transaction costs) and
          (dikurangi dengan biaya transaksi) dan nilai                       the redemption value is recognised in profit or loss over
          penarikan diakui dalam laba rugi selama periode                    the period of the borrowing, using the EIR method.
          pinjaman dengan menggunakan metode EIR.

          Biaya yang dibayarkan untuk pembukaan fasilitas                    Fees paid on the establishment of loan facilities are
          pinjaman diakui sebagai biaya transaksi pinjaman                   recognised as transaction costs of the loan to the
          sepanjang besar kemungkinan sebagian atau seluruh                  extent that it is probable that some or all of the facility
          fasilitas akan ditarik. Dalam hal ini, biaya tersebut              will be drawn down. In this case, the fee is deferred
          ditangguhkan sampai penarikan terjadi. Sejauh tidak                until the draw-down occurs. To the extent that there is
          ada bukti bahwa ada kemungkinan sebagian atau                      no evidence that it is probable that some or all of the
          seluruh fasilitas akan ditarik, biaya tersebut                     facility will be drawn down, the fee is capitalised as a
          dikapitalisasi sebagai pembayaran di muka untuk                    pre-payment for liquidity services and amortised over
          layanan likuiditas dan diamortisasi selama periode                 the period of the facility to which it relates.
          fasilitas yang terkait.

          Pinjaman diklasifikasikan sebagai liabilitas jangka                Borrowings are classified as current liabilities unless
          pendek kecuali Grup memiliki hak tanpa syarat untuk                the Group has an unconditional right to defer the
          menunda pembayaran liabilitas selama paling tidak                  settlement of the liability for at least 12 months after the
          12 bulan setelah tanggal pelaporan.                                reporting date.

     v.   Pengakuan pendapatan dan beban                                v.   Revenue and expense recognition

          Pendapatan diukur berdasarkan imbalan yang Grup                    Revenue is measured based on the consideration to
          perkirakan menjadi haknya dalam kontrak dengan                     which the Group expects to be entitled in a contract
          pelanggan dan tidak termasuk jumlah yang ditagih                   with a customer and excludes amounts collected on
          atas nama pihak ketiga. Grup mengakui pendapatan                   behalf of third parties. The Group recognizes revenue
          ketika mengalihkan pengendalian barang atau jasa                   when it transfers control of a product or service to a
          kepada     pelanggan.    Grup    secara    umum                    customer. The Group has generally concluded that it is
          menyimpulkan bahwa Grup adalah prinsipal dalam                     the principal in its revenue arrangements.
          pengaturan pendapatannya.

          Penjualan barang                                                   Sale of goods

          Pendapatan dari penjualan barang diakui pada saat                  Revenue from sale of goods is recognised at the point
          pengendalian aset dialihkan kepada pelanggan,                      in time when control of the asset is transferred to the
          umumnya pada saat penyerahan barang.                               customer, generally on delivery of the goods.

          Grup mempertimbangkan apakah ada janji lain dalam                  The Group considers whether there are other promises
          kontrak yang merupakan kewajiban pelaksanaan                       in the contract that are separate performance
          terpisah yang perlu dialokasikan sebagian dari harga               obligations to which a portion of the transaction price
          transaksi. Dalam menentukan harga transaksi untuk                  needs to be allocated. In determining the transaction
          penjualan    barang,     Grup    mempertimbangkan                  price for the sale of goods, the Group considers the
          pengaruh dari imbalan variabel.                                    effects of variable consideration.

          Pendapatan dari penjualan ini diakui berdasarkan                   Revenue from these sales is recognised based on the
          harga jual dikurangi diskon, estimasi insentif                     sales price, net of the discount, estimated sales
          penjualan, rabat volume dan biaya pemasaran dan                    incentives, volume rebates and other marketing and
          promosi lainnya, dan tidak termasuk Pajak                          promotion costs and excludes Value Added Tax
          Pertambahan Nilai (“PPN”).                                         (“VAT”).




                                                                  37
Page 248
                                                                          The original consolidated financial statements included herein are in
                                                                                                                     the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                       PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                                  AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                    NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                                FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                              As of December 31, 2024
                  Pada Tanggal Tersebut                                                and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                         (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                               unless otherwise stated)

3.   INFORMASI     KEBIJAKAN            AKUNTANSI        YANG        3.   MATERIAL ACCOUNTING                  POLICY       INFORMATION
     MATERIAL (lanjutan)                                                  (continued)

     v.   Pengakuan pendapatan dan beban (lanjutan)                       v.   Revenue and expense recognition (continued)

          (i)   Imbalan variabel                                               (i)   Variable consideration

                Jika imbalan dalam kontrak mencakup jumlah                           If the consideration in a contract includes a
                variabel, Grup mengestimasi jumlah imbalan                           variable amount, the Group estimates the amount
                yang menjadi haknya sebagai imbalan atas                             of consideration to which it will be entitled in
                pengalihan barang kepada pelanggan. Imbalan                          exchange for transferring the goods to the
                variabel diestimasi pada awal kontrak dan                            customer. The variable consideration is estimated
                dibatasi hingga kemungkinan besar bahwa                              at contract inception and constrained until it is
                pembalikan pendapatan yang material dalam                            highly probable that a material revenue reversal in
                jumlah pendapatan kumulatif yang diakui tidak                        the amount of cumulative revenue recognised will
                akan terjadi ketika ketidakpastian terkait dengan                    not occur when the associated uncertainty with
                imbalan variabel kemudian diselesaikan.                              the variable consideration is subsequently
                                                                                     resolved.

                Beberapa kontrak untuk penjualan barang                              Some contracts for the sale of goods provide
                memberi hak retur dan rabat volume kepada                            customers with a right of return and volume
                pelanggan. Hak retur dan rabat volume                                rebates. The rights of return and volume rebates
                menimbulkan imbalan variabel.                                        give rise to variable consideration.

                -    Hak retur                                                       -   Rights of return

                     Kontrak tertentu memberi pelanggan hak                              Certain contracts provide a customer with the
                     untuk mengembalikan barang dalam                                    right to return the goods within a specified
                     jangka waktu tertentu.                                              period.

                     Grup menggunakan metode nilai yang                                  The Group uses the expected value method
                     diharapkan untuk mengestimasi barang                                to estimate the goods that will not be returned
                     yang tidak akan dikembalikan karena                                 because this method best predicts the amount
                     metode ini paling baik memprediksi jumlah                           of variable consideration to which the Group
                     imbalan variabel yang menjadi hak Grup.                             will be entitled. The requirements in PSAK
                     Ketentuan dalam PSAK 115 tentang                                    115 on constraining estimates of variable
                     estimasi batasan atas imbalan variabel                              consideration are also applied in order to
                     juga diterapkan untuk menentukan jumlah                             determine      the   amount      of     variable
                     imbalan variabel yang dapat dimasukkan                              consideration that can be included in the
                     ke dalam harga transaksi.                                           transaction price.

                     Pada setiap akhir periode pelaporan, Grup                           At each reporting period, the Group estimates
                     mengestimasi barang yang diharapkan                                 the goods that are expected to be returned
                     akan dikembalikan dan mengakui provisi                              and recognises a provision for sales return as
                     retur penjualan sebagai liabilitas kontrak                          a contract liability and the right of return asset
                     beserta hak retur aset (untuk penyesuaian                           (for the corresponding cost of goods sold of
                     beban pokok penjualan atas provisi retur                            the provision for sales return) as a contract
                     penjualan tersebut) sebagai aset kontrak.                           asset.

                -    Rabat volume                                                    -   Volume rebate

                     Kontrak tertentu    dengan     pelanggan                            Certain contracts customers provide volume
                     memberikan rabat volume berdasarkan                                 rebate based on the sales achievement
                     pencapaian penjualan selama periode                                 during the rebate programme period. The
                     program rabat. Grup mengakui liabilitas                             Group has recognised contract liability related
                     kontrak terkait dengan rabat volume ini                             to this volume rebate as part of accrual
                     sebagai bagian dari beban akrual                                    marketing and promotion in the consolidated
                     pemasaran dan promosi pada laporan                                  statement of financial position.
                     posisi keuangan konsolidasian.




                                                                    38
Page 249
                                                                        The original consolidated financial statements included herein are in
                                                                                                                   the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                    PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                               AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                 NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                             FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                           As of December 31, 2024
                  Pada Tanggal Tersebut                                             and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                      (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                            unless otherwise stated)

3.   INFORMASI     KEBIJAKAN            AKUNTANSI      YANG        3.   MATERIAL ACCOUNTING                  POLICY       INFORMATION
     MATERIAL (lanjutan)                                                (continued)

     v.   Pengakuan pendapatan dan beban (lanjutan)                     v.   Revenue and expense recognition (continued)

          Program loyalitas pelanggan                                        Customer loyalty programme

          Grup memiliki program poin loyalitas yang                          The Group has a loyalty points programme that allows
          memungkinkan pelanggan mengumpulkan poin yang                      customers to accumulate points that can be redeemed
          dapat ditukarkan dengan barang gratis. Poin loyalitas              for free goods. The loyalty points give rise to a
          menimbulkan kewajiban pelaksanaan terpisah karena                  separate performance obligation as they provide a
          memberikan hak material kepada pelanggan.                          material right to the customer. A portion of the
          Sebagian dari harga transaksi dialokasikan ke poin                 transaction price is allocated to the loyalty points
          loyalitas  yang     diberikan kepada     pelanggan                 awarded to customers based on relative stand-alone
          berdasarkan harga jual berdiri sendiri dan diakui                  selling price and recognised as a contract liability until
          sebagai liabilitas kontrak sampai poin tersebut                    the points are redeemed. The contract liability is
          ditukarkan. Liabilitas kontrak tersebut disajikan                  presented as part of “Accrued expenses” in the
          sebagai bagian dari “Beban akrual” dalam laporan                   consolidated statements of financial position. Revenue
          posisi keuangan konsolidasian. Pendapatan diakui                   is recognised upon redemption of products by the
          pada saat penukaran produk oleh pelanggan.                         customer.

          Ketika pihak lain terlibat dalam penyediaan barang                 When another party is involved in providing
          gratis kepada pelanggannya, Grup menentukan                        promotional free goods to its customer, the Group
          apakah ia adalah prinsipal atau agen dalam transaksi               determines whether it is a principal or an agent in these
          ini dengan mengevaluasi sifat dari janjinya kepada                 transactions by evaluating the nature of its promise to
          pelanggan. Grup sepenuhnya bertanggung jawab                       the customer. The Group is primarily responsible for
          untuk memenuhi janji atas pemberian barang gratis                  fulfilling the promise to provide free goods to eligible
          kepada pelanggan yang memenuhi syarat. Grup                        customers. The Group determined that they control the
          menetapkan bahwa Grup mengendalikan barang                         free goods before they are transferred to customers
          gratis sebelum ditransfer ke pelanggan dan memiliki                and have the ability to direct the use of the free goods.
          kemampuan untuk mengarahkan penggunaan barang                      Therefore, the Group concluded that it is the principal
          gratis tersebut. Oleh karena itu, Grup menyimpulkan                in this arrangement. Upon redemption of loyalty points
          bahwa Grup adalah prinsipal dalam pengaturan ini.                  by the customer, the Group records the cost of
          Pada saat penukaran poin loyalitas oleh pelanggan,                 promotional free goods as part of the cost of goods
          Grup mencatat biaya barang gratis sebagai bagian                   sold in the consolidated statement of profit or loss and
          dari harga pokok penjualan dalam laporan laba rugi                 other comprehensive income.
          dan penghasilan komprehensif lain konsolidasian.

          Beban                                                              Expenses

          Biaya dan beban diakui dalam laba rugi dalam                       Cost and expenses are recognised in profit or loss in
          periode saat terjadinya menggunakan dasar akrual.                  the period when incurred on an accrual basis.

     w.   Pajak penghasilan                                             w.   Income tax

          Beban pajak terdiri dari pajak kini dan tangguhan.                 Income tax expense comprises current and deferred
          Beban pajak diakui dalam laporan laba rugi kecuali                 tax. Income tax expense is recognized in profit or loss
          untuk transaksi yang berhubungan dengan transaksi                  except to the extent that it relates to items recognized
          diakui diluar laba atau rugi, baik dalam penghasilan               outside profit or loss, either in other comprehensive
          komprehensif lain atau langsung pada ekuitas atau                  income or directly in equity or business combinations.
          kombinasi bisnis.

          Pajak kini                                                         Current tax

          Beban pajak kini dihitung dengan menggunakan tarif                 Current tax expense is calculated using tax rates that
          pajak yang berlaku pada tanggal pelaporan                          have been enacted or substantively enacted at end of
          keuangan, dan ditetapkan berdasarkan taksiran laba                 the reporting period, and is provided based on the
          kena pajak tahun berjalan. Manajemen secara                        estimated taxable income for the year. Management
          periodik mengevaluasi posisi yang dilaporkan di Surat              periodically evaluates positions taken in tax returns
          Pemberitahuan Tahunan (SPT) sehubungan dengan                      with respect to situations in which applicable tax
          situasi di mana aturan pajak yang berlaku                          regulation is subject to interpretation. It establishes
          membutuhkan interpretasi. Jika perlu, manajemen                    provision where appropriate on the basis of amounts
          menentukan provisi berdasarkan jumlah yang                         expected to be paid to the tax authorities.
          diharapkan akan dibayar kepada otoritas pajak.

                                                                  39
Page 250
                                                                          The original consolidated financial statements included herein are in
                                                                                                                     the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                      PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                                 AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                   NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                               FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                             As of December 31, 2024
                  Pada Tanggal Tersebut                                               and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                        (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                              unless otherwise stated)

3.   INFORMASI     KEBIJAKAN           AKUNTANSI         YANG        3.   MATERIAL ACCOUNTING                  POLICY       INFORMATION
     MATERIAL (lanjutan)                                                  (continued)

     w.   Pajak penghasilan (lanjutan)                                    w.   Income tax (continued)

          Pajak kini (lanjutan)                                                Current tax (continued)

          Kekurangan atau kelebihan pembayaran pajak                           Underpayment or overpayment of corporate income tax
          penghasilan badan dicatat sebagai bagian dari beban                  are presented as part of income tax expense in the
          pajak dalam laporan laba rugi dan penghasilan                        consolidated statement of profit or loss and other
          komprehensif lain konsolidasian.                                     comprehensive income.

          Bunga dan denda yang timbul dari ketetapan pajak                     Interests and penalties arising from tax assessments
          dan kurang bayar atau lebih bayar pajak lainnya                      and underpayment or overpayment of other taxes are
          disajikan sebagai bagian dari penghasilan atau beban                 presented as part of other operating income or
          operasi lain karena tidak dianggap sebagai bagian                    expenses since they are not considered as part of the
          dari beban pajak penghasilan.                                        income tax expense.

          Koreksi terhadap liabilitas perpajakan diakui pada                   Amendments to tax obligations are recorded when a
          saat surat ketetapan pajak diterima. Jika Grup                       tax assessment letter is received. If the Group files an
          mengajukan keberatan, Grup mempertimbangkan                          appeal, the Group considers whether it is probable that
          apakah besar kemungkinan otoritas pajak akan                         a taxation authority will accept the appeal and reflect its
          menerima keberatan tersebut dan merefleksikan                        effect on the Group’s tax obligations.
          dampaknya terhadap liabilitas perpajakan Grup.

          Pajak tangguhan                                                      Deferred tax

          Pajak tangguhan diukur dengan metode liabilitas atas                 Deferred tax is provided using the liability method on
          beda waktu pada tanggal pelaporan antara dasar                       temporary differences at the reporting date between
          pengenaan pajak untuk aset dan liabilitas dengan                     the tax bases of assets and liabilities and their carrying
          nilai tercatatnya untuk tujuan pelaporan keuangan.                   amounts for financial reporting purposes. Deferred tax
          Liabilitas pajak tangguhan diakui untuk semua                        liabilities are recognized for all taxable temporary
          perbedaan temporer kena pajak dengan beberapa                        differences with certain exceptions. Deferred tax assets
          pengecualian. Aset pajak tangguhan diakui untuk                      are recognized for deductible temporary differences
          perbedaan temporer yang dapat dikurangkan dan                        and tax losses carry-forward to the extent that it is
          rugi fiskal apabila terdapat kemungkinan besar                       probable that taxable income will be available in future
          bahwa jumlah laba kena pajak pada masa                               years against which the deductible temporary
          mendatang akan memadai untuk mengkompensasi                          differences and tax losses carry-forward can be
          perbedaan temporer dan rugi fiskal. Aset dan liabilitas              utilized. Such deferred tax assets and liabilities are not
          pajak tangguhan tidak diakui jika perbedaan temporer                 recognized if the temporary differences arise from the
          timbul dari pengakuan awal (selain dari kombinasi                    initial recognition (other than in a business combination
          bisnis atau transaksi yang tidak menimbulkan                         or transactions that give rise to equal taxable and
          perbedaan temporer kena pajak dan perbedaan                          deductible temporary differences) of assets and
          temporer dapat dikurangkan dalam jumlah yang                         liabilities in a transaction that affects neither the taxable
          sama) dari aset dan liabilitas suatu transaksi yang                  profit nor the accounting profit. In addition, deferred tax
          tidak memengaruhi laba kena pajak atau laba                          liabilities are not recognized if the temporary
          akuntansi. Selain itu, liabilitas pajak tangguhan tidak              differences arises from the initial recognition of
          diakui jika perbedaan temporer timbul dari pengakuan                 goodwill.
          awal goodwill.

          Aset dan liabilitas pajak tangguhan dihitung                         Deferred tax assets and liabilities are measured at the
          berdasarkan tarif yang akan dikenakan pada periode                   tax rates that are expected to apply to the period when
          saat aset direalisasikan atau liabilitas tersebut                    the asset is realized or the liability is settled, based on
          diselesaikan, berdasarkan undang-undang pajak                        tax laws that have been enacted or substantively
          yang berlaku atau berlaku secara substantif pada                     enacted at the end of reporting period. The related tax
          akhir periode laporan keuangan. Pengaruh pajak                       effects of the provisions for and/or reversals of all
          terkait dengan penyisihan dan/atau pemulihan semua                   temporary differences during the year, including the
          perbedaan temporer selama tahun berjalan, termasuk                   effect of change in tax rates, are credited or charged to
          pengaruh perubahan tarif pajak, dikreditkan atau                     current period operations, except to the extent that they
          dibebankan pada periode operasi berjalan, untuk                      relate to items previously charged or credited to other
          transaksi-transaksi    yang    sebelumnya      telah                 comprehensive income or directly in equity.
          dibebankan atau dikreditkan ke penghasilan
          komprehensif lain atau langsung ke ekuitas.


                                                                    40
Page 251
                                                                       The original consolidated financial statements included herein are in
                                                                                                                  the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                   PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                              AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                            FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                          As of December 31, 2024
                  Pada Tanggal Tersebut                                            and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                     (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                           unless otherwise stated)

3.   INFORMASI     KEBIJAKAN           AKUNTANSI      YANG        3.   MATERIAL ACCOUNTING                  POLICY       INFORMATION
     MATERIAL (lanjutan)                                               (continued)

     w.   Pajak penghasilan (lanjutan)                                 w.   Income tax (continued)

          Pajak tangguhan (lanjutan)                                        Deferred tax (continued)

          Jumlah tercatat aset pajak tangguhan dikaji ulang                 The carrying amount of a deferred tax asset is
          pada setiap akhir periode pelaporan, dan mengurangi               reviewed at the end of each reporting period and
          jumlah tercatat jika kemungkinan besar laba kena                  reduced to the extent that it is no longer probable that
          pajak tidak lagi tersedia dalam jumlah yang memadai               sufficient taxable income will be available to allow all or
          untuk mengkompensasi sebagian atau seluruh aset                   part of the benefit of that deferred tax asset to be
          pajak tangguhan. Aset pajak tangguhan yang belum                  utilized. Unrecognized deferred tax assets are
          diakui dinilai kembali pada setiap akhir periode                  reassessed at each reporting date and are recognized
          pelaporan dan diakui sepanjang kemungkinan besar                  to the extent that it has become probable that future
          laba kena pajak mendatang akan memungkinkan                       taxable income will allow the deferred tax assets to be
          aset pajak tangguhan tersedia untuk dipulihkan.                   recovered.

          Aset dan liabilitas pajak tangguhan disajikan secara              Deferred tax assets and liabilities are offset when a
          saling hapus saat hak yang dapat dipaksakan secara                legally enforceable right exists to offset current tax
          hukum ada untuk saling hapus aset pajak kini dan                  assets against current tax liabilities, and the deferred
          liabilitas pajak kini, dan aset pajak tangguhan dan               tax assets and the deferred tax liabilities relate to the
          liabilitas pajak tangguhan berkaitan dengan entitas               same taxable entity, or the Group intends to settle its
          kena pajak yang sama, atau Grup bermaksud untuk                   current tax liabilities and assets on a net basis, or to
          menyelesaikan liabilitas dan aset pajak kini dengan               realise the assets and settle the liabilities
          dasar neto, atau merealisasikan aset dan                          simultaneously, in each future period in which
          menyelesaikan liabilitas secara bersamaan, pada                   significant amounts of deferred tax liabilities or assets
          setiap periode masa depan di mana jumlah signifikan               are expected to be settled or recovered.
          atas liabilitas atau aset pajak tangguhan diharapkan
          untuk diselesaikan atau dipulihkan.

          Pajak Pertambahan Nilai                                           Value Added Tax

          Pendapatan, beban-beban dan aset-aset diakui neto                 Revenue, expenses and assets are recognized net of
          atas jumlah Pajak Pertambahan Nilai (“PPN”) kecuali:              the amount of Value Added Tax (“VAT”) except:

          •   PPN yang muncul dari pembelian aset atau jasa                 •   Where the VAT incurred on a purchase of assets
              yang tidak dapat dikreditkan oleh kantor pajak,                   or services is not recoverable from the taxation
              yang dalam hal ini PPN diakui sebagai bagian                      authority, in which case the VAT is recognized as
              dari biaya perolehan aset atau sebagai bagian                     part of the cost of acquisition of the asset or as
              dari item beban-beban yang diterapkan; dan                        part of the expense of the asset or as part of the
                                                                                expense item as applicable; and
          •   Piutang dan utang yang disajikan termasuk                     •   Receivables and payables that are stated with the
              dengan jumlah PPN.                                                amount of VAT included.

          Jumlah PPN Neto yang terpulihkan dari, atau                       The net amount of VAT recoverable from, or payable
          terutang kepada, kantor pajak termasuk sebagai                    to, the taxation authorities is included as part of
          bagian dari piutang atau utang pada laporan posisi                receivables or payables in the consolidated statements
          keuangan konsolidasian.                                           of financial position.

     x.   Modal saham                                                  x.   Share capital

          Saham biasa diklasifikasikan sebagai ekuitas. Biaya               Ordinary shares are classified as equity. Incremental
          tambahan yang secara langsung dapat diatribusikan                 costs directly attributable to the issue of new ordinary
          kepada penerbitan saham biasa atau opsi disajikan                 shares or options are shown in equity as a deduction,
          pada ekuitas sebagai pengurang penerimaan, setelah                net of tax, from the proceeds.
          dikurangi pajak.

          Biaya yang terjadi sehubungan dengan penerbitan                   Costs incurred in connection with the Company’s
          modal saham Perusahaan kepada publik dikurangkan                  issuance of share capital to the public were offset
          langsung dengan penerimaan dan disajikan sebagai                  directly with the proceeds and presented as a
          pengurang akun tambahan modal disetor dalam                       deduction to the additional paid-in capital account in
          laporan posisi keuangan konsolidasian.                            the consolidated statements of financial position.


                                                                 41
Page 252
                                                                          The original consolidated financial statements included herein are in
                                                                                                                     the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                      PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                                 AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                   NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                               FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                             As of December 31, 2024
                  Pada Tanggal Tersebut                                               and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                        (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                              unless otherwise stated)

3.   INFORMASI     KEBIJAKAN           AKUNTANSI         YANG        3.   MATERIAL ACCOUNTING                  POLICY       INFORMATION
     MATERIAL (lanjutan)                                                  (continued)

     x.   Modal saham (lanjutan)                                          x.   Share capital (continued)

          Ketika entitas Grup membeli modal saham ekuitas                      Where any Group entity purchases the Company’s
          Perusahaan (saham treasuri), imbalan yang dibayar,                   equity share capital (treasury           shares), the
          termasuk biaya tambahan yang secara langsung                         consideration paid, including any directly attributable
          dapat diatribusikan (dikurangi pajak penghasilan)                    incremental costs (net of income taxes) is deducted
          dikurangkan dari ekuitas yang diatribusikan kepada                   from equity attributable to the Company’s equity
          pemilik ekuitas Perusahaan sampai saham tersebut                     holders until the shares are cancelled or reissued.
          dibatalkan atau diterbitkan kembali. Ketika saham                    Where such ordinary shares are subsequently
          biasa tersebut selanjutnya diterbitkan kembali,                      reissued, any consideration received, net of any
          imbalan yang diterima, dikurangi biaya tambahan                      directly attributable incremental transaction costs and
          transaksi yang terkait dan dampak pajak penghasilan                  the related income tax effects, is included in equity
          yang terkait dimasukkan pada ekuitas yang dapat                      attributable to the Company’s equity holders.
          diatribusikan kepada pemilik ekuitas Perusahaan.

     y.   Dividen                                                         y.   Dividends

          Distribusi dividen kepada para pemegang saham                        Dividend distribution to the Group’s shareholders is
          Grup diakui sebagai liabilitas dalam laporan                         recognised as a liability in the Group’s consolidated
          keuangan konsolidasian Grup pada periode dimana                      financial statements in the period in which the
          dividen telah disetujui oleh pemegang saham entitas                  dividends are approved by the Group’s General
          dalam Rapat Umum Pemegang Saham Grup                                 Meeting of Shareholders.
          (“RUPS”).

     z.   Laba per saham                                                  z.   Earnings per share

          Laba per saham dasar dihitung dengan membagi                         Basic earnings per share are calculated by dividing the
          laba bersih yang tersedia bagi pemegang saham                        profit attributable to the equity holders of the Company
          Perusahaan dengan jumlah rata-rata tertimbang                        by the weighted average number of ordinary shares
          saham biasa yang beredar pada periode berjalan.                      outstanding during the period.

          Apabila jumlah saham biasa yang beredar meningkat                    If the number of ordinary shares outstanding is
          tanpa disertai peningkatan sumber daya, maka                         increased without an increase in resources, the
          jumlah saham biasa yang beredar sebelum peristiwa                    number of ordinary shares outstanding before the
          tersebut disesuaikan dengan perubahan proporsional                   event is adjusted for the proportionate change in the
          atas jumlah saham beredar seolah-olah peristiwa                      number of ordinary shares outstanding as if the event
          tersebut terjadi pada permulaan dari periode sajian                  had occurred at the beginning of the earliest period
          paling awal.                                                         presented.

     aa. Pengukuran nilai wajar                                           aa. Fair value measurement

          Grup mengukur pada pengakuan awal instrumen                          The Group initially measure financial instruments at fair
          keuangan, dan aset dan liabilitas yang diakuisisi pada               value, and assets and liabilities of the acquirees upon
          kombinasi bisnis. Grup juga mengukur jumlah                          business combinations. The Group also measure
          terpulihkan dari Unit Penghasil Kas (“UPK”) tertentu                 certain recoverable amounts of the Cash Generating
          berdasarkan nilai wajar dikurangi biaya pelepasan                    Unit (“CGU”) using Fair Value Less Cost of Disposal
          (Fair Value Less Cost of Disposal atau “FVLCD”).                     (“FVLCD”).

          Nilai wajar adalah harga yang akan diterima dari                     Fair value is the price that would be received to sell an
          menjual suatu aset atau harga yang akan dibayar                      asset or paid to transfer a liability in an orderly
          untuk mengalihkan suatu liabilitas dalam transaksi                   transaction between market participants at the
          teratur antara pelaku pasar pada tanggal                             measurement date. The fair value measurement is
          pengukuran. Pengukuran nilai wajar mengasumsikan                     based on the presumption that the transaction to sell
          bahwa transaksi untuk menjual aset atau                              the asset or transfer the liability takes place either:
          mengalihkan liabilitas terjadi:

          i)  Di pasar utama untuk aset atau liabilitas tersebut,              i)   In the principal market for the asset or liability, or
              atau
          ii) Jika tidak terdapat pasar utama, di pasar yang                   ii) In the absence of a principal market, in the most
              paling menguntungkan untuk aset atau liabilitas                      advantageous market for the asset or liability.
              tersebut.

                                                                    42
Page 253
                                                                          The original consolidated financial statements included herein are in
                                                                                                                     the Indonesian language.


                  PT AVIA AVIAN Tbk
                DAN ENTITAS ANAKNYA                                                       PT AVIA AVIAN Tbk
         CATATAN ATAS LAPORAN KEUANGAN                                                  AND ITS SUBSIDIARIES
                   KONSOLIDASIAN                                                    NOTES TO THE CONSOLIDATED
               Tanggal 31 Desember 2024                                                FINANCIAL STATEMENTS
           serta Untuk Tahun yang Berakhir                                              As of December 31, 2024
                 Pada Tanggal Tersebut                                                and For the Year Then Ended
            (Disajikan dalam jutaan Rupiah,                                         (Expressed in millions of Rupiah,
                 kecuali dinyatakan lain)                                               unless otherwise stated)

3.   INFORMASI     KEBIJAKAN           AKUNTANSI         YANG        3.   MATERIAL ACCOUNTING                  POLICY       INFORMATION
     MATERIAL (lanjutan)                                                  (continued)

     aa. Pengukuran nilai wajar (lanjutan)                                aa. Fair value measurement (continued)

         Pasar utama atau pasar yang paling menguntungkan                     The principal or the most advantageous market must
         tersebut harus dapat diakses oleh Grup.                              be accessible to by the Group.

         Nilai wajar dari aset atau liabilitas diukur dengan                  The fair value of an asset or a liability is measured
         menggunakan asumsi yang akan digunakan pelaku                        using the assumptions that market participants would
         pasar ketika menentukan harga aset atau liabilitas                   use when pricing the asset or liability, assuming that
         tersebut, dengan asumsi bahwa pelaku pasar                           market participants act in their economic best interest.
         bertindak dalam kepentingan ekonomi terbaiknya.

         Pengukuran nilai wajar dari suatu aset non-keuangan                  A fair value measurement of a non-financial asset
         memperhitungkan kemampuan pelaku pasar untuk                         takes into account a market participant’s ability to
         menghasilkan      manfaat      ekonomik      dengan                  generate economic benefits by using the asset in its
         menggunakan aset dalam penggunaan tertinggi dan                      highest and best use or by selling it to another market
         terbaiknya atau dengan menjualnya kepada pelaku                      participant that would use the asset in its highest and
         pasar lain yang akan menggunakan aset tersebut                       best use.
         pada penggunaan tertinggi dan terbaiknya.

         Grup menggunakan teknik penilaian yang sesuai                        The Group use valuation techniques that are
         dengan keadaan dan data yang memadai tersedia                        appropriate in the circumstances and for which
         untuk mengukur nilai wajar, dengan memaksimalkan                     sufficient data are available to measure fair value,
         masukan (input) yang dapat diamati (observable)                      maximizing the use of relevant observable inputs and
         yang relevan dan meminimalkan masukan (input)                        minimizing the use of unobservable inputs.
         yang tidak dapat diamati (unobservable).

         Semua aset dan liabilitas yang nilai wajarnya diukur                 All assets and liabilities for which fair value is
         atau diungkapkan dalam laporan keuangan                              measured or disclosed in the consolidated financial
         konsolidasian dikategorikan dalam hirarki nilai wajar                statements are categorized within the fair value
         berdasarkan level masukan (input) paling rendah                      hierarchy, described as follows, based on the lowest
         yang signifikan terhadap pengukuran nilai wajar                      level input that is significant to the fair value
         secara keseluruhan sebagai berikut:                                  measurement as a whole:

         i)   Level 1 - Harga kuotasian (tanpa penyesuaian) di                 i)   Level 1 - Quoted (unadjusted) market prices in
              pasar aktif untuk aset atau liabilitas yang identik                   active markets for identical assets or liabilities.
              yang dapat diakses entitas pada tanggal
              pengukuran.
         ii) Level 2 - Teknik penilaian yang menggunakan                       ii) Level 2 - Valuation techniques for which the lowest
              tingkat masukan (input) yang paling rendah yang                      level input that is significant to the fair value
              signifikan terhadap pengukuran nilai wajar yang                      measurement is directly or indirectly observable.
              dapat diamati (observable) baik secara langsung
              atau tidak langsung.
         iii) Level 3 - Teknik penilaian yang menggunakan                      iii) Level 3 - Valuation techniques for which the lowest
              tingkat masukan (input) yang paling rendah yang                       level input that is significant to the fair value
              signifikan terhadap pengukuran nilai wajar yang                       measurement is directly or indirectly unobservable.
              tidak dapat diamati (unobservable) baik secara
              langsung atau tidak langsung.

         Untuk aset dan liabilitas yang diakui pada laporan                   For assets and liabilities that are recognized in the
         keuangan konsolidasian secara berulang, Grup                         consolidated financial statements on recurring basis,
         menentukan apakah terdapat perpindahan antara                        the Group determine whether transfers have occurred
         level dalam hirarki dengan melakukan evaluasi ulang                  between levels in the hierarchy by re-assessing
         atas penetapan kategori (berdasarkan level masukan                   categorization (based on the lowest level input that is
         (input) paling rendah yang signifikan terhadap                       significant to the fair value measurement as a whole) at
         pengukuran nilai wajar secara keseluruhan) pada tiap                 the end of each reporting period.
         akhir periode pelaporan.




                                                                    43
Page 254
                                                                         The original consolidated financial statements included herein are in
                                                                                                                    the Indonesian language.


                  PT AVIA AVIAN Tbk
                DAN ENTITAS ANAKNYA                                                      PT AVIA AVIAN Tbk
         CATATAN ATAS LAPORAN KEUANGAN                                                 AND ITS SUBSIDIARIES
                   KONSOLIDASIAN                                                   NOTES TO THE CONSOLIDATED
               Tanggal 31 Desember 2024                                               FINANCIAL STATEMENTS
           serta Untuk Tahun yang Berakhir                                             As of December 31, 2024
                 Pada Tanggal Tersebut                                               and For the Year Then Ended
            (Disajikan dalam jutaan Rupiah,                                        (Expressed in millions of Rupiah,
                 kecuali dinyatakan lain)                                              unless otherwise stated)

3.   INFORMASI     KEBIJAKAN           AKUNTANSI        YANG        3.   MATERIAL ACCOUNTING                  POLICY       INFORMATION
     MATERIAL (lanjutan)                                                 (continued)

     bb. Informasi segmen                                                bb. Segment information

          Segmen operasi dilaporkan dengan cara yang                          Operating segments are reported in a manner
          konsisten dengan pelaporan internal yang diberikan                  consistent with the internal reporting provided to the
          kepada pengambil keputusan operasi utama.                           chief operating decision-maker. The chief operating
          Pengambil keputusan       operasi   utama, yang                     decision-maker, who is responsible for allocating
          bertanggung jawab mengalokasikan sumber daya                        resources and assessing the performance of the
          dan menilai kinerja segmen operasi,          telah                  operating segments, has been identified as the
          diidentifikasi sebagai     komite pengarah yang                     steering committee that makes strategic decisions.
          mengambil keputusan strategis.

          Untuk tujuan manajemen, Grup dibagi menjadi dua                     For management purposes, the Group is organised
          segmen operasi berdasarkan produk yang dikelola                     into two operating segments based on their products
          secara independen oleh masing-masing pengelola                      which are independently managed by the respective
          segmen yang bertanggung jawab atas kinerja dari                     segment managers responsible for the performance of
          masing-masing segmen. Para pengelola segmen                         the respective segments under their charge. The
          melaporkan secara langsung kepada manajemen                         segment managers report directly to the Group’s
          Grup yang secara teratur mengkaji laba segmen                       management who regularly review the segment’s
          sebagai dasar untuk mengalokasikan sumber daya                      results in order to allocate resources to the segments
          ke masing-masing segmen dan untuk menilai kinerja                   and assess the segment’s performance. Additional
          segmen. Pengungkapan tambahan pada masing-                          disclosures on each of these segments are shown in
          masing segmen terdapat dalam Catatan 35, termasuk                   Note 35, including the factors used to identify the
          faktor yang digunakan untuk mengidentifikasi segmen                 reportable segments and the measurement basis of
          yang dilaporkan dan dasar pengukuran informasi                      segment information.
          segmen.

     cc. Peristiwa setelah periode pelaporan                             cc. Events after the reporting period

          Peristiwa    setelah    periode    pelaporan   yang                 Events after the reporting period that provide additional
          memberikan informasi tambahan tentang posisi Grup                   information about the Group’s position at the reporting
          pada periode pelaporan (menyesuaikan peristiwa)                     period (adjusting events) are reflected in the
          tercermin dalam laporan keuangan konsolidasian.                     consolidated financial statements. Events after the
          Peristiwa setelah periode pelaporan yang tidak                      reporting period that are not adjusting events, if any,
          menyesuaikan peristiwa, jika ada, diungkapkan ketika                are disclosed when material to the consolidated
          material terhadap laporan keuangan konsolidasian.                   financial statements.


4.   PERTIMBANGAN   AKUNTANSI   PENTING                   DAN       4.   CRITICAL ACCOUNTING JUDGMENTS AND                              KEY
     SUMBER UTAMA KETIDAKPASTIAN ESTIMASI                                SOURCES OF ESTIMATION UNCERTAINTY

     Penyusunan laporan keuangan konsolidasian Grup                      The preparation of the Group’s consolidated financial
     mengharuskan manajemen untuk membuat pertimbangan,                  statements requires management to make judgements,
     estimasi dan asumsi yang memengaruhi jumlah yang                    estimates and assumptions that affect the reported amounts
     dilaporkan dari pendapatan, beban, aset dan liabilitas, dan         of revenues, expenses, assets and liabilities, and the
     pengungkapan atas liabilitas kontinjensi, pada akhir                disclosure of contingent liabilities, at the end of the reporting
     periode pelaporan. Estimasi, asumsi, dan pertimbangan               period. Estimates, assumptions and judgements are
     tersebut dievaluasi secara terus menerus berdasarkan                continuously evaluated based on historical experience and
     pengalaman historis dan faktor-faktor lainnya, termasuk             other factors, including expectations of future events that
     harapan peristiwa di masa datang yang diyakini wajar                are believed to be reasonable under the circumstances.
     berdasarkan kondisi yang ada.

     Grup telah mengidentifikasi hal-hal berikut dimana                  The Group has identified the following matters under which
     diperlukan pertimbangan, estimasi dan asumsi signifikan             significant judgements, estimates and assumptions are
     dan dimana hasil aktual dapat berbeda dari estimasi                 made and where actual results may differ from these
     tersebut jika menggunakan asumsi dan kondisi yang                   estimates under different assumptions and conditions and
     berbeda dan dapat memengaruhi secara material hasil                 may materially affect the consolidated financial results or
     keuangan atau posisi keuangan konsolidasian Grup yang               financial position of the Group reported in future years.
     dilaporkan dalam tahun mendatang.




                                                                   44
Page 255
                                                                          The original consolidated financial statements included herein are in
                                                                                                                     the Indonesian language.


                  PT AVIA AVIAN Tbk
                DAN ENTITAS ANAKNYA                                                       PT AVIA AVIAN Tbk
         CATATAN ATAS LAPORAN KEUANGAN                                                  AND ITS SUBSIDIARIES
                   KONSOLIDASIAN                                                    NOTES TO THE CONSOLIDATED
               Tanggal 31 Desember 2024                                                FINANCIAL STATEMENTS
           serta Untuk Tahun yang Berakhir                                              As of December 31, 2024
                 Pada Tanggal Tersebut                                                and For the Year Then Ended
            (Disajikan dalam jutaan Rupiah,                                         (Expressed in millions of Rupiah,
                 kecuali dinyatakan lain)                                               unless otherwise stated)

4.   PERTIMBANGAN AKUNTANSI PENTING  DAN                             4.   CRITICAL ACCOUNTING JUDGMENTS AND KEY
     SUMBER UTAMA KETIDAKPASTIAN ESTIMASI                                 SOURCES OF ESTIMATION UNCERTAINTY (continued)
     (lanjutan)

     Penilaian model bisnis                                               Business model assessment

     Klasifikasi dan pengukuran aset keuangan bergantung                  Classification and measurement of financial assets depends
     pada hasil SPPI testing dan uji model bisnis. Grup                   on the results of the SPPI testing and the business model
     menentukan      model    bisnis    pada   tingkat    yang            test. The Group determines the business model at a level
     mencerminkan bagaimana kelompok aset keuangan                        that reflects how groups of financial assets are managed
     dikelola bersama untuk mencapai tujuan bisnis tertentu.              together to achieve a particular business objective. This
     Penilaian ini mencakup penilaian yang mencerminkan                   assessment includes judgment reflecting all relevant
     semua bukti yang relevan termasuk bagaimana kinerja                  evidence including how the performance of the assets is
     aset dievaluasi dan kinerjanya diukur, risiko yang                   evaluated and their performance measured, the risks that
     memengaruhi kinerja aset dan bagaimana hal ini dikelola              affect the performance of the assets and how these are
     dan bagaimana manajer aset diberi kompensasi. Grup                   managed and how the managers of the assets are
     memantau aset keuangan yang diukur pada biaya                        compensated. The Group monitors financial assets
     perolehan diamortisasi atau nilai wajar melalui                      measured at amortized cost or fair value through other
     penghasilan     komprehensif    lain   yang    dihentikan            comprehensive income that are derecognized prior to their
     pengakuannya sebelum jatuh tempo untuk memahami                      maturity to understand the reason for their disposal and
     alasan pelepasannya dan apakah alasan tersebut                       whether the reasons are consistent with the objective of the
     konsisten dengan tujuan bisnis di mana aset tersebut                 business for which the asset was held. Monitoring is part of
     dimiliki. Pemantauan adalah bagian dari penilaian                    the Group’s continuous assessment of whether the
     berkelanjutan Grup atas apakah model bisnis di mana aset             business model for which the remaining financial assets are
     keuangan yang tersisa dimiliki tetap sesuai dan jika tidak           held continues to be appropriate and if it is not appropriate
     sesuai apakah telah terjadi perubahan dalam model bisnis             whether there has been a change in business model and so
     dan dengan demikian terdapat perubahan prospektif                    a prospective change to the classification of those assets.
     terhadap klasifikasi aset keuangan tersebut. Tidak ada               No such changes were required during the periods
     perubahan yang diperlukan selama periode yang                        presented.
     disajikan.

     Nilai wajar aset tetap (tanah) dan properti investasi (tanah         Fair value fixed assets (land) and investment properties
     dan bangunan)                                                        (land and buildings)

     Nilai wajar dari aset tetap (tanah) dan properti investasi           The fair value of fixed assets (land) and investment
     (tanah dan bangunan) ditentukan menggunakan teknik                   properties (land and buildings) is determined by using
     valuasi. Aset tetap (tanah) dan properti investasi (tanah            valuation techniques. The Group’s fixed assets (land) and
     dan bangunan) milik Grup divaluasi oleh penilai                      investment properties (land and buildings) were valued by
     independen profesional yang memiliki kualifikasi yang                independent professionally qualified valuers who hold a
     relevan dan pengalaman yang berhubungan dengan lokasi                recognised relevant professional qualification and have
     dan segmen aset tetap (tanah) dan properti investasi                 recent experience in the locations and segment of the fixed
     (tanah dan bangunan) yang akan dinilai. Untuk semua                  assets (land) and investment properties (land and buildings)
     penilaian, penggunaan saat ini setara dengan penggunaan              valued. For all valuations, their current use equates to the
     tertinggi dan terbaik.                                               highest and best use.

     Nilai wajar untuk tanah yang dimiliki dalam aset tetap dan           The fair value for land held in fixed assets and investment
     properti investasi ditentukan menggunakan pendekatan                 properties was determined using the market approach. This
     pasar. Pendekatan ini mempertimbangkan nilai pasar                   approach takes into account the market price of land for
     tanah untuk properti pembanding di sekitar lokasi, dengan            comparable properties in the vicinity, with certain
     penyesuaian- penyesuaian tertentu yang dilakukan                     adjustments for differences due to different characteristics
     dengan mempertimbangkan perbedaan karakteristik dari                 of the land, such as land certificate status, property size,
     tanah tersebut, seperti status sertifikasi tanah, ukuran             location and accessibility. The most significant input into this
     properti, lokasi, akses menuju lokasi. Hal yang paling               valuation approach is the land market price per square
     signifikan dalam pendekatan ini adalah harga pasar tanah             metre.
     per meter persegi.

     Nilai wajar untuk bangunan yang dimiliki dalam properti              The fair value for building held in investment properties was
     investasi     ditentukan    menggunakan      pendekatan              determined using the income approach with the discounted
     pendapatan dengan model arus kas diskontoan. Asumsi                  cash flow model. The significant assumption under this
     signifikan dalam pendekatan ini adalah tingkat tarif sewa            approach are rental and service charge rates and the
     dan biaya jasa dan tingkat diskonto.                                 discount rate.




                                                                    45
Page 256
                                                                      The original consolidated financial statements included herein are in
                                                                                                                 the Indonesian language.


                  PT AVIA AVIAN Tbk
                DAN ENTITAS ANAKNYA                                                   PT AVIA AVIAN Tbk
         CATATAN ATAS LAPORAN KEUANGAN                                              AND ITS SUBSIDIARIES
                   KONSOLIDASIAN                                                NOTES TO THE CONSOLIDATED
               Tanggal 31 Desember 2024                                            FINANCIAL STATEMENTS
           serta Untuk Tahun yang Berakhir                                          As of December 31, 2024
                 Pada Tanggal Tersebut                                            and For the Year Then Ended
            (Disajikan dalam jutaan Rupiah,                                     (Expressed in millions of Rupiah,
                 kecuali dinyatakan lain)                                           unless otherwise stated)

4.   PERTIMBANGAN AKUNTANSI PENTING  DAN                         4.   CRITICAL ACCOUNTING JUDGMENTS AND KEY
     SUMBER UTAMA KETIDAKPASTIAN ESTIMASI                             SOURCES OF ESTIMATION UNCERTAINTY (continued)
     (lanjutan)

     Beban akrual pemasaran dan promosi                               Accrued marketing and promotion expenses

     Grup mengevaluasi kelayakan beban akrual promosi dan             The Group evaluates the appropriateness of accrued
     pemasaran pada setiap akhir periode pelaporan.                   marketing and promotion expenses at every end of
                                                                      reporting period.

     Grup membuat pertimbangan yang signifikan untuk                  The Group exercised significant assumptions and
     mengestimasi jumlah beban akrual pemasaran dan                   judgements to estimate the accrued marketing and
     promosi pada akhir tahun. Asumsi-asumsi utama dalam              promotion expenses amounts at the end of the year. The
     penentuan beban akrual pemasaran dan promosi adalah              key assumptions in determining the accrued marketing and
     harga barang promosi dan estimasi pencapaian penjualan.          promotion expenses were price of the promotional goods
     Ketidakpastian muncul sehubungan dengan harga barang             and estimated sales achievement. Uncertainties exist with
     promosi dan jumlah aktual pencapaian penjualan, yang             respect to price of the promotional goods and the actual
     mungkin berbeda dengan estimasi. Setiap perubahan dari           sales achievement, which may be different from the
     faktor-faktor ini akan berdampak pada jumlah realisasi           estimation. Any changes in these factors will impact the
     yang dapat berbeda dari beban akrual pemasaran dan               realisable amount which can be different from the reported
     promosi.                                                         accrued marketing and promotion expenses.

     Penyusutan aset tetap                                            Depreciation of fixed assets

     Aset tetap disusutkan dengan menggunakan metode garis            The fixed assets are depreciated on a straight-line method
     lurus berdasarkan taksiran masa manfaat ekonomisnya.             over their estimated useful lives. Management estimates the
     Manajemen mengestimasi masa manfaat ekonomis aset                useful lives of these fixed assets to be within 4 to 30 years.
     tetap antara 4 sampai dengan 30 tahun.

     Grup secara periodik menelaah estimasi masa manfaat              The Group periodically reviews the estimated useful lives of
     aset tetap berdasarkan beberapa faktor diantaranya               fixed assets based on several factors such as technical
     spesifikasi teknis, operasi dan kebutuhan usaha. Laporan         specification, operation and business needs. The
     keuangan konsolidasian dapat terpengaruh secara                  consolidated financial statements could be materially
     material terhadap perubahan dalam estimasi tersebut.             affected by changes in these estimates. Management will
     Manajemen akan merevisi beban penyusutan dimana                  revise the depreciation charged where useful lives are
     masa manfaatnya berbeda dari estimasi sebelumnya, atau           different to those previously estimated, or it will write off or
     penghapusan atau melakukan penurunan nilai atas aset             written down technically obsolete or non-strategic assets
     yang secara teknis telah usang atau aset non-strategis           that have been abandoned or sold. Further details are
     yang dihentikan penggunaannya atau dijual. Penjelasan            disclosed in Note 12.
     lebih rinci diungkapkan dalam Catatan 12.

     Sewa                                                             Leases

     Penentuan apakah suatu perjanjian merupakan atau                 Determining whether an arrangement is or contains a lease
     mengandung sewa memerlukan pertimbangan yang                     requires careful judgement to assess whether the
     cermat untuk menilai apakah perjanjian tersebut                  arrangement conveys a right to obtain substantially all the
     memberikan hak untuk memperoleh secara substansial               economic benefits from the use of the asset throughout the
     seluruh manfaat ekonomi dari penggunaan aset selama              period of use and the right to direct the use of the asset,
     periode penggunaan dan hak untuk mengarahkan                     even if the right is not explicitly specified in the
     penggunaan aset, bahkan jika hak tidak secara eksplisit          arrangement.
     ditentukan dalam pengaturan.

     Grup memiliki berbagai perjanjian sewa dimana Grup               The Group has various lease agreements where the Group
     bertindak sebagai lessee sehubungan dengan aset                  acts as a lessee in respect of certain assets. The Group
     tertentu. Grup mengevaluasi apakah risiko dan manfaat            evaluates whether significant risks and rewards of
     yang signifikan atas kepemilikan aset sewaan dialihkan           ownership of the leased asset are transferred to the lessee
     kepada penyewa atau dipertahankan oleh Grup                      or retained by the Group based on PSAK 116, which
     berdasarkan PSAK 116, yang mengharuskan Grup untuk               requires the Group to make judgements and estimates of
     membuat pertimbangan dan estimasi atas pengalihan                the transfer of risks and rewards of ownership of the leased
     risiko dan manfaat kepemilikan aset yang disewa.                 asset.




                                                                46
Page 257
                                                                          The original consolidated financial statements included herein are in
                                                                                                                     the Indonesian language.


                  PT AVIA AVIAN Tbk
                DAN ENTITAS ANAKNYA                                                       PT AVIA AVIAN Tbk
         CATATAN ATAS LAPORAN KEUANGAN                                                  AND ITS SUBSIDIARIES
                   KONSOLIDASIAN                                                    NOTES TO THE CONSOLIDATED
               Tanggal 31 Desember 2024                                                FINANCIAL STATEMENTS
           serta Untuk Tahun yang Berakhir                                              As of December 31, 2024
                 Pada Tanggal Tersebut                                                and For the Year Then Ended
            (Disajikan dalam jutaan Rupiah,                                         (Expressed in millions of Rupiah,
                 kecuali dinyatakan lain)                                               unless otherwise stated)

4.   PERTIMBANGAN AKUNTANSI PENTING  DAN                             4.   CRITICAL ACCOUNTING JUDGMENTS AND KEY
     SUMBER UTAMA KETIDAKPASTIAN ESTIMASI                                 SOURCES OF ESTIMATION UNCERTAINTY (continued)
     (lanjutan)

     Sewa (lanjutan)                                                      Leases (continued)

     Karena Grup tidak dapat dengan mudah menentukan suku                 Since the Group could not readily determine the implicit
     bunga implisit, manajemen menggunakan suku bunga                     rate, management uses the Group’s incremental borrowing
     pinjaman inkremental Grup sebagai tingkat diskonto. Ada              rate as a discount rate. There are a number of factors to
     beberapa faktor yang perlu dipertimbangkan dalam                     consider in determining an incremental borrowing rate,
     menentukan suku bunga pinjaman inkremental, yang                     many of which need judgement in order to be able to
     banyak di antaranya memerlukan pertimbangan untuk                    reliably quantify any necessary adjustments to arrive at the
     dapat secara andal mengukur penyesuaian yang                         final discount rates. In determining the incremental
     diperlukan untuk sampai pada tingkat diskonto akhir.                 borrowing rate, the Group considers the following main
     Dalam menentukan suku bunga pinjaman inkremental,                    factors: the Group’s corporate credit risk, the lease term, the
     Grup mempertimbangkan faktor-faktor utama berikut:                   lease payment term, the economic environment, the time at
     risiko kredit korporat Grup, jangka waktu sewa, jangka               which the lease is entered into, and the currency in which
     waktu pembayaran sewa, lingkungan ekonomi, waktu di                  the lease payments are denominated.
     mana sewa dimasukkan, dan mata uang di mana
     pembayaran sewa ditentukan.

     Grup menentukan jangka waktu sewa sebagai jangka                     The Group determines the lease term as the non-
     waktu sewa yang tidak dapat dibatalkan, bersama dengan               cancellable term of the lease, together with any periods
     setiap periode yang tercakup dalam opsi untuk                        covered by an option to extend the lease if it is reasonably
     memperpanjang sewa jika cukup pasti akan dilaksanakan,               certain to be exercised, or any periods covered by an option
     atau setiap periode yang tercakup dalam opsi untuk                   to terminate the lease, if it is reasonably certain not to be
     mengakhiri sewa, jika cukup pasti untuk tidak dilakukan.             exercised.

     Pertimbangan dilakukan dalam mengevaluasi apakah                     The Group applies judgement in evaluating whether it is
     cukup pasti akan menggunakan opsi untuk memperbarui                  reasonably certain whether or not to exercise the option to
     atau mengakhiri sewa. Artinya, Grup mempertimbangkan                 renew or terminate the lease. That is, it considers all
     seluruh faktor relevan yang menciptakan insentif ekonomi             relevant factors that create an economic incentive for it to
     untuk melakukan pembaruan atau penghentian. Grup juga                exercise either the renewal or termination. The Group also
     mempertimbangkan apakah ada penalti signifikan untuk                 considers whether there are significant penalties to
     membatalkan (atau untuk tidak memperpanjang) kontrak,                terminate (or not extend) the contracts, any leasehold
     adanya leasehold improvement yang diperkirakan memiliki              improvement are expected to have a significant remaining
     nilai sisa yang signifikan atau faktor lain mencakup sejarah         value or other factors including historical lease durations
     durasi sewa dan biaya serta halangan bisnis untuk                    and the costs and business disruption required to replace
     menggantikan aset sewa dalam menelaah hak yang dapat                 the leased assets in assessing the enforceable rights to
     dipaksakan untuk memperpanjang sewa diluar kontrak                   extend the lease beyond the written contract.
     tertulis.

     Grup menilai kembali masa sewa jika ada peristiwa atau               The Group reassesses the lease term if there is a significant
     perubahan signifikan dalam keadaan yang berada dalam                 event or change in circumstances that is within its control
     kendali dan memengaruhi kemampuan Grup untuk                         and affects its ability to exercise or not to exercise the
     menggunakan atau tidak menggunakan opsi untuk                        option to renew or to terminate.
     memperbarui atau menghentikan.




                                                                    47
Page 258
                                                                            The original consolidated financial statements included herein are in
                                                                                                                       the Indonesian language.


                  PT AVIA AVIAN Tbk
                DAN ENTITAS ANAKNYA                                                         PT AVIA AVIAN Tbk
         CATATAN ATAS LAPORAN KEUANGAN                                                    AND ITS SUBSIDIARIES
                   KONSOLIDASIAN                                                      NOTES TO THE CONSOLIDATED
               Tanggal 31 Desember 2024                                                  FINANCIAL STATEMENTS
           serta Untuk Tahun yang Berakhir                                                As of December 31, 2024
                 Pada Tanggal Tersebut                                                  and For the Year Then Ended
            (Disajikan dalam jutaan Rupiah,                                           (Expressed in millions of Rupiah,
                 kecuali dinyatakan lain)                                                 unless otherwise stated)

4.   PERTIMBANGAN AKUNTANSI PENTING  DAN                               4.   CRITICAL ACCOUNTING JUDGMENTS AND KEY
     SUMBER UTAMA KETIDAKPASTIAN ESTIMASI                                   SOURCES OF ESTIMATION UNCERTAINTY (continued)
     (lanjutan)

     Instrumen keuangan                                                     Financial instruments

     Grup mencatat aset dan liabilitas keuangan tertentu pada               The Group carry certain financial assets and liabilities at fair
     nilai wajar, yang mengharuskan penggunaan estimasi                     value, which requires the use of accounting estimates.
     akuntansi. Sementara komponen signifikan atas                          While significant components of fair value measurement
     pengukuran nilai wajar ditentukan menggunakan bukti                    were determined using verifiable objective evidences, the
     obyektif yang dapat diverifikasi, jumlah perubahan nilai               amount of changes in fair value would differ if the Group
     wajar dapat berbeda bila Grup menggunakan metodologi                   utilized a different valuation methodology. Any changes in a
     penilaian yang berbeda. Perubahan nilai wajar aset dan                 fair value of these financial assets and liabilities would
     liabilitas keuangan tersebut dapat mempengaruhi secara                 directly affect the Group’s other comprehensive income.
     langsung penghasilan komprehensif lain Grup.

     Nilai tercatat dari aset keuangan dan liabilitas keuangan              The carrying amounts of financial assets and financial
     pada nilai wajar dalam laporan posisi keuangan                         liabilities carried at fair values in the consolidated
     konsolidasian pada tanggal 31 Desember 2024 dan 2023                   statements of financial position as of December 31, 2024
     diungkapkan dalam Catatan 32.                                          and 2023 are disclose in Note 32.

     Penyisihan persediaan usang dan lambat bergerak                        Allowance for obsolescence and slow-moving inventories

     Penyisihan persediaan usang dan lambat bergerak                        Allowance for obsolescence and slow-moving inventories is
     diestimasi berdasarkan fakta dan situasi terbaik yang                  estimated based on the best available facts and
     tersedia, termasuk namun tidak terbatas kepada, kondisi                circumstances, including but not limited to, the inventories’
     fisik persediaan yang dimiliki, harga jual pasar, estimasi             own physical conditions, their market selling prices,
     biaya penyelesaian dan estimasi biaya yang timbul untuk                estimated costs of completion and estimated costs to be
     penjualan. Provisi dievaluasi kembali dan disesuaikan jika             incurred for their sales. The provisions are re-evaluated and
     terdapat tambahan informasi yang mempengaruhi jumlah                   adjusted as additional information received affects the
     yang diestimasi. Nilai tercatat persediaan diungkapkan                 amount estimated. The carrying amounts of inventories are
     dalam Catatan 9.                                                       disclosed in Note 9.

     Imbalan pasca kerja dan pensiun                                        Pension and employee benefits

     Penentuan utang dan biaya pensiun dan liabilitas imbalan               The determination of the Group’s obligations and cost for
     kerja Grup bergantung pada pemilihan asumsi yang                       pension and employee benefits liabilities is dependent on its
     digunakan oleh aktuaris independen dalam menghitung                    selection of certain assumptions used by the independent
     jumlah-jumlah tersebut. Asumsi tersebut termasuk antara                actuaries in calculating such amounts. Those assumptions
     lain, tingkat diskonto, tingkat kenaikan gaji tahunan, tingkat         include among others, discount rates, future annual salary
     pengunduran diri karyawan tahunan, tingkat kecacatan,                  increase, annual employee turn-over rate, disability rate,
     umur pensiun dan tingkat kematian. Hasil aktual yang                   retirement age and mortality rate. Actual results that differ
     berbeda dari asumsi yang ditetapkan Grup diakui segera                 from the Group’s assumptions are recognized immediately
     sebagai pos terpisah pada penghasilan komprehensif lain                as a separate item under other comprehensive income in
     di ekuitas. Sementara Grup berkeyakinan bahwa asumsi                   equity. While the Group believes that its assumptions are
     tersebut adalah wajar dan sesuai, perbedaan signifikan                 reasonable and appropriate, significant differences in the
     pada hasil aktual atau perubahan signifikan dalam asumsi               Group’s actual experiences or significant changes in the
     yang ditetapkan Grup dapat mempengaruhi secara                         Group’s assumptions may materially affect its estimated
     material liabilitas diestimasi atas pensiun dan imbalan                liabilities for pension and employee benefits and net
     kerja dan beban imbalan kerja neto. Nilai tercatat liabilitas          employee benefits expense. The carrying amount of the
     imbalan kerja diungkapkan pada Catatan 18.                             employee benefits obligation are disclosed in Note 18.




                                                                      48
Page 259
                                                                       The original consolidated financial statements included herein are in
                                                                                                                  the Indonesian language.


                  PT AVIA AVIAN Tbk
                DAN ENTITAS ANAKNYA                                                    PT AVIA AVIAN Tbk
         CATATAN ATAS LAPORAN KEUANGAN                                               AND ITS SUBSIDIARIES
                   KONSOLIDASIAN                                                 NOTES TO THE CONSOLIDATED
               Tanggal 31 Desember 2024                                             FINANCIAL STATEMENTS
           serta Untuk Tahun yang Berakhir                                           As of December 31, 2024
                 Pada Tanggal Tersebut                                             and For the Year Then Ended
            (Disajikan dalam jutaan Rupiah,                                      (Expressed in millions of Rupiah,
                 kecuali dinyatakan lain)                                            unless otherwise stated)

4.   PERTIMBANGAN AKUNTANSI PENTING  DAN                          4.   CRITICAL ACCOUNTING JUDGMENTS AND KEY
     SUMBER UTAMA KETIDAKPASTIAN ESTIMASI                              SOURCES OF ESTIMATION UNCERTAINTY (continued)
     (lanjutan)

     Penyisihan atas penurunan nilai piutang usaha                     Allowance for impairment of trade receivables

     Grup menggunakan matriks provisi untuk menghitung ECL             The Group uses a provision matrix to calculate ECLs for
     atas piutang usaha. Tarif provisi didasarkan pada hari            trade receivables. The provision rates are based on days
     yang lewat jatuh tempo untuk mengelompokan pelanggan              past due for groupings of various customer segments that
     ke segmen yang memiliki pola kerugian serupa. Matriks             have similar loss patterns. The provision matrix is initially
     provisi awalnya berdasarkan tarif default yang diamati            based on the Group’s historical observed default rates. The
     Grup secara historis. Grup akan mengkalibrasi matriks             Group will calibrate the matrix to adjust the historical credit
     tersebut untuk menyesuaikan pengalaman kerugian kredit            loss experience with forward-looking information.
     historis dengan informasi kedepan.

     Misalnya, jika prakiraan kondisi ekonomi diperkirakan             For instance, if forecast economic conditions are expected
     memburuk selama tahun depan yang dapat menyebabkan                to deteriorate over the next year which can lead to an
     peningkatan jumlah default di sektor usaha Grup, tingkat          increased number of defaults in the Group’s industry sector,
     default historis disesuaikan. Pada setiap tanggal                 the historical default rates are adjusted. At every reporting
     pelaporan, tarif default yang diamati secara historis             date, the historical observed default rates are updated and
     diperbarui dan perubahan dalam estimasi ke depan                  changes in the forward-looking estimates are analysed.
     dianalisa kembali.

     Penilaian korelasi antara tingkat default yang diamati            The assessment of the correlation between historical
     secara historis, prakiraan kondisi ekonomi, dan ECL               observed default rates, forecast economic conditions and
     adalah estimasi signifikan. Jumlah ECL sensitif terhadap          ECLs is a significant estimate. The amount of ECLs is
     perubahan keadaan dan prakiraan kondisi ekonomi.                  sensitive to changes in circumstances and of forecast
     Pengalaman kerugian kredit historis Grup dan prakiraan            economic conditions. The Group’s historical credit loss
     kondisi ekonomi mungkin tidak mewakili actual default             experience and forecast of economic conditions may also
     pelanggan di masa depan. Informasi mengenai ECL atas              not be representative of customer’s actual default in the
     piutang usaha Grup diungkapkan pada Catatan 6.                    future. The information about the ECLs on the Group’s trade
                                                                       receivables is disclosed in Note 6.

     Menentukan apakah poin loyalitas memberikan hak                   Determining whether the loyalty points provide material
     material kepada pelanggan                                         rights to customers

     Segmen ritel Grup menjalankan program poin loyalitas              The Group’s retail segment operates a loyalty points
     yang memungkinkan pelanggan untuk mengumpulkan                    program which allows customers to accumulate points when
     poin ketika mereka membeli barang di toko ritel Grup.             they purchase products in the Group’s retail stores. The
     Poin-poin tersebut dapat ditukarkan dengan produk gratis,         points can be redeemed for free products, subject to a
     bergantung pada jumlah poin minimum yang diperoleh.               minimum number of points obtained. The Group assessed
     Grup menilai apakah poin loyalitas tersebut memberikan            whether the loyalty points provide a material right to the
     hak material kepada pelanggan yang perlu untuk                    customers that needs to be accounted for as a separate
     diperhitungkan sebagai kewajiban pelaksanaan terpisah.            performance obligation.

     Grup menetapkan bahwa poin loyalitas memberikan hak               The Group determined that the loyalty points provide a
     material yang tidak akan diterima pelanggan tanpa                 material right that customers would not receive without
     menandatangani kontrak. Produk gratis yang diterima               entering into the contract. The free products the customers
     pelanggan ketika menukar poin loyalitasnya tidak                  would receive by exercising the loyalty points do not reflect
     mencerminkan harga yang berdiri sendiri yang akan                 the stand-alone selling price that customers without an
     dibayar oleh pelanggan yang tidak memiliki hubungan               existing relationship with the Group would pay for those
     dengan Grup untuk produk tersebut. Hak pelanggan juga             products. The customers’ right also accumulates as they
     terkumpul ketika membeli produk tambahan.                         purchase additional products.




                                                                 49
Page 260
                                                                         The original consolidated financial statements included herein are in
                                                                                                                    the Indonesian language.


                  PT AVIA AVIAN Tbk
                DAN ENTITAS ANAKNYA                                                      PT AVIA AVIAN Tbk
         CATATAN ATAS LAPORAN KEUANGAN                                                 AND ITS SUBSIDIARIES
                   KONSOLIDASIAN                                                   NOTES TO THE CONSOLIDATED
               Tanggal 31 Desember 2024                                               FINANCIAL STATEMENTS
           serta Untuk Tahun yang Berakhir                                             As of December 31, 2024
                 Pada Tanggal Tersebut                                               and For the Year Then Ended
            (Disajikan dalam jutaan Rupiah,                                        (Expressed in millions of Rupiah,
                 kecuali dinyatakan lain)                                              unless otherwise stated)

5.   KAS DAN SETARA KAS                                             5.   CASH AND CASH EQUIVALENTS

                                                    2024                      2023
     Kas                                                                                                                     Cash on hand
       Rupiah                                              3,407                     5,056                                      Rupiah
       Lain-lain                                              81                        76                                      Others
     Jumlah kas                                            3,488                     5,132                             Total cash on hand
     Kas di bank                                                                                                       Cash in banks
       Rupiah                                                                                                              Rupiah
         PT Bank UOB Indonesia                         164,238                    90,891                PT Bank UOB Indonesia
         PT Bank Danamon Indonesia Tbk                 106,965                    69,072        PT Bank Danamon Indonesia Tbk
         PT Bank Mandiri (Persero) Tbk                  85,160                   126,532          PT Bank Mandiri (Persero) Tbk
         PT Bank Central Asia Tbk                       36,087                    22,262               PT Bank Central Asia Tbk
         PT Bank Rakyat Indonesia                                                                     PT Bank Rakyat Indonesia
             (Persero) Tbk                                 6,114                     4,887                     (Persero) Tbk
         PT Bank Tabungan Negara Tbk                       2,756                     4,668       PT Bank Tabungan Negara Tbk
         PT Bank Permata Tbk                               2,450                     1,315                PT Bank Permata Tbk
         PT Bank OCBC NISP Tbk                             1,977                     1,465            PT Bank OCBC NISP Tbk
         PT Bank Maspion Indonesia Tbk                     1,870                         -       PT Bank Maspion Indonesia Tbk
         Lain-lain                                         3,123                     3,282                              Others
       Dolar AS                                                                                                         US Dollar
         PT Bank Mandiri (Persero) Tbk                                                            PT Bank Mandiri (Persero) Tbk
             (AS$ 16.249 pada tahun 2024 dan                                                         (US$ 16,249 in 2024 and
             AS$ 2.452 pada tahun 2023)                       263                       38                US$ 2,452 in 2023)
     Jumlah kas di bank                                411,003                   324,412                               Total cash in banks
     Deposito                                                                                                          Time deposits
       Rupiah                                                                                                              Rupiah
         PT Bank Tabungan Negara Tbk                   670,000                   900,000         PT Bank Tabungan Negara Tbk
         PT Bank Rakyat Indonesia                                                                     PT Bank Rakyat Indonesia
            (Persero) Tbk                              600,000                           -                     (Persero) Tbk
         PT Bank Mandiri Taspen                        150,000                           -              PT Bank Mandiri Taspen
         PT Bank Maspion Indonesia Tbk                 150,000                           -       PT Bank Maspion Indonesia Tbk
         PT Bank Danamon Indonesia Tbk                 100,000                           -      PT Bank Danamon Indonesia Tbk
         PT Bank Maybank Indonesia Tbk                 100,000                           -      PT Bank Maybank Indonesia Tbk
         PT Bank Pan Indonesia Tbk                     100,000                           -           PT Bank Pan Indonesia Tbk
         PT Bank Permata Tbk                            25,000                           -                PT Bank Permata Tbk
         PT Bank Mandiri (Persero) Tbk                  20,000                       1,000        PT Bank Mandiri (Persero) Tbk
     Jumlah deposito                                 1,915,000                   901,000                                Total time deposits
     Jumlah (tidak termasuk cerukan)                 2,329,491                 1,230,544              Total (excluding bank overdraft)

     Tingkat bunga deposito per tahun            6.50% - 6.75%            2.50% - 6.15%             Annual interest rate of time deposits


     Kas dan setara kas termasuk hal-hal berikut untuk                   Cash and cash equivalents include the following for the
     kepentingan penyajian laporan arus kas konsolidasian:               purposes of the consolidated statement of cash flows:

                                                    2024                      2023
     Kas dan setara kas                              2,329,491                 1,230,544                      Cash and cash equivalents
     Cerukan (Catatan 17)                               (9,189 )                  (5,222 )                      Bank overdraft (Note 17)
     Kas dan setara kas                              2,320,302                 1,225,322                    Cash and cash equivalents


     Tidak terdapat saldo kas dan setara kas yang digunakan              There is no balance of cash and cash equivalents pledged
     sebagai jaminan dan dibatasi penggunaannya.                         as collateral and restricted in use.




                                                                50
Page 261
                                                                             The original consolidated financial statements included herein are in
                                                                                                                        the Indonesian language.


                  PT AVIA AVIAN Tbk
                DAN ENTITAS ANAKNYA                                                          PT AVIA AVIAN Tbk
         CATATAN ATAS LAPORAN KEUANGAN                                                     AND ITS SUBSIDIARIES
                   KONSOLIDASIAN                                                       NOTES TO THE CONSOLIDATED
               Tanggal 31 Desember 2024                                                   FINANCIAL STATEMENTS
           serta Untuk Tahun yang Berakhir                                                 As of December 31, 2024
                 Pada Tanggal Tersebut                                                   and For the Year Then Ended
            (Disajikan dalam jutaan Rupiah,                                            (Expressed in millions of Rupiah,
                 kecuali dinyatakan lain)                                                  unless otherwise stated)

6.   PIUTANG USAHA                                                      6.   TRADE RECEIVABLES

                                                          2024                    2023
     Pihak ketiga                                         1,446,729                1,230,494                                     Third parties
     Pihak berelasi (Catatan 7)                              16,319                   14,018                          Related parties (Note 7)

     Sub-jumlah                                           1,463,048                1,244,512                                        Sub-total
     Dikurangi : cadangan kerugian                                                                           Less : allowance for impairment
       penurunan nilai piutang usaha                         (1,311 )                  (1,469)                losses of trade receivables
     Jumlah                                               1,461,737                1,243,043                                                Total


     Analisa umur piutang usaha adalah sebagai berikut:                      The aging analysis of trade receivables is as follows:

                                                          2024                    2023
     Belum jatuh tempo                                    1,416,747                1,198,915                                     Not yet due
     Lewat jatuh tempo:                                                                                                            Overdue:
       1 - 30 hari                                           23,677                    23,254                                 1 - 30 days
       31 - 60 hari                                           9,717                    10,669                                31 - 60 days
       Lebih dari 60 hari                                    12,907                    11,674                               Over 60 days
     Dikurangi cadangan kerugian                                                                              Less allowance for impairment
       penurunan nilai piutang usaha                         (1,311 )                  (1,469 )               losses of trade receivables
     Jumlah piutang usaha                                 1,461,737                1,243,043                         Total trade receivables


     Mutasi penyisihan atas ECL piutang usaha Grup adalah                    Movements in the Group’s allowance for ECLs of trade
     sebagai berikut:                                                        receivables are as follows:

                                                          2024                    2023
     Saldo awal                                              (1,469)                     (337)                           Beginning balances
     Perubahan selama tahun berjalan                             158                   (1,132)                       Changes during the year
     Saldo akhir                                             (1,311)                   (1,469)                               Ending balances


     Berdasarkan hasil penelaahan keadaan piutang pada                       Based on a review of the status of receivable accounts at
     akhir periode pelaporan, manajemen Grup berkeyakinan                    the end of the reporting period, the Group’s management
     bahwa penyisihan penurunan nilai telah memadai untuk                    believes that the allowance for impairment losses is
     menutup kemungkinan kerugian atas tidak tertagihnya                     adequate to cover possible losses from uncollectible
     piutang usaha.                                                          receivables.

     Pada tanggal 31 Desember 2024 dan 2023, seluruh                         As of December 31, 2024 and 2023, all of the Group’s trade
     piutang usaha Grup dalam mata uang Rupiah.                              receivables are denominated in Rupiah.

     Pada tanggal 31 Desember 2024 dan 2023, piutang usaha                   As of December 31, 2024 and 2023, trade receivables
     masing-masing sebesar Rp 1.416.747 dan Rp 1.198.915                     amounting to Rp 1,416,747 and Rp 1,198,915, respectively,
     belum jatuh tempo dan tidak mengalami penurunan nilai.                  were not past due and not impaired. These receivables will
     Piutang ini akan jatuh tempo dalam waktu 1-60 hari.                     be due in 1-60 days.

     Pada tanggal 31 Desember 2024 dan 2023 terdapat                         As of December 31, 2024 and 2023, trade receivables
     piutang usaha masing-masing sebesar Rp 44.990 dan                       amounting to Rp 44,990 and Rp 44,128, respectively, were
     Rp 44.128 telah lewat jatuh tempo namun tidak mengalami                 past due but not impaired. These relate to a number of
     penurunan nilai. Piutang tersebut berasal dari sejumlah                 independent customers for whom there is no recent history
     pelanggan yang tidak memiliki sejarah gagal bayar.                      of default.

     Pada tanggal 31 Desember 2024 dan 2023, piutang usaha                   As of December 31, 2024 and 2023, trade receivables
     masing-masing sebesar Rp 1.311 dan Rp 1.469                             amounting to Rp 1,311 and Rp 1,469, respectively, were
     mengalami penurunan nilai dan telah diprovisikan.                       impaired and have been fully provisioned.




                                                                   51
Page 262
                                                                              The original consolidated financial statements included herein are in
                                                                                                                         the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                          PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                                     AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                       NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                                   FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                                 As of December 31, 2024
                  Pada Tanggal Tersebut                                                   and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                            (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                                  unless otherwise stated)

6.   PIUTANG USAHA (lanjutan)                                            6.   TRADE RECEIVABLES (continued)

     Pada tanggal 31 Desember 2024 dan 2023, piutang usaha                    As of December 31, 2024 and 2023, the Group’s certain
     tertentu Grup dijaminkan atas fasilitas pinjaman dari                    trade receivables are pledged as collateral for the loan
     PT Bank Mandiri (Persero) Tbk dengan perjanjian fidusia                  facilities from PT Bank Mandiri (Persero) Tbk with fiduciary
     senilai Rp 562.860 (Catatan 17).                                         agreement totalling Rp 562,860 (Note 17).

     Lihat Catatan 32 mengenai risiko kredit piutang usaha                    Refer to Note 32 on the credit risk of trade receivables to
     untuk memahami bagaimana Grup mengelola dan                              understand how the Group manages and measures the
     mengukur kualitas kredit piutang usaha.                                  credit quality of trade receivables.


7.   SALDO DAN TRANSAKSI DENGAN PIHAK BERELASI                           7.   BALANCES AND TRANSACTIONS WITH RELATED
                                                                              PARTIES

     a.   Sifat hubungan pihak berelasi                                       a.   Nature of relationship

          Dalam kegiatan usaha normal, Grup melakukan                              In the normal course of business, the Group enters
          transaksi usaha dan lainnya dengan pihak-pihak                           into trade and other transactions with related parties,
          berelasi, yang terafiliasi dengan Grup melalui                           which are affiliated with the Group through direct or
          kepemilikan langsung dan tak langsung, dan/atau                          indirect ownership, and/or under common control
          dibawah entitas sepengendali. Tranksaksi antara                          entity. The transactions among related parties are
          pihak-pihak    berelasi     dilakukan   berdasarkan                      made based on terms agreed by the parties.
          persyaratan yang disetujui oleh kedua belah pihak.

          Dalam kegiatan usahanya, Grup melakukan transaksi                        In the normal course of business, the Group entered
          tertentu dengan pihak berelasi, yang meliputi antara                     into certain transactions with related parties, including
          lain:                                                                    the following:

           Pihak-pihak berelasi/                  Sifat hubungan/                                            Jenis transaksi/
               Related parties                  Nature of relationship                                    Nature of transactions


          PT Avia Avian            Memiliki personil manajemen kunci yang          Penjualan barang, pembelian alat-alat dan
              Industri Pipa          sama dan dalam entitas sepengendali/              bahan bangunan, pendapatan sewa
                                     Have the same key management                      bangunan kantor dan penggantian biaya/
                                     personnel and under common control entity         Sales of goods, purchase of tools and building
                                                                                       materials, office building rent income and
                                                                                       expense reimbursement
          PT Mitra Mulia           Memiliki personil manajemen kunci yang          Penjualan barang, pembelian bahan pembantu
             Makmur                  sama dan dalam entitas sepengendali/              dan pendapatan sewa bangunan pabrik/
                                     Have the same key management                      Sales of goods, purchase of supplies
                                     personnel and under common control entity         and building materials and factory
                                                                                       building rent income
          PT Sarana Depo           Memiliki personil manajemen kunci yang          Penjualan barang dan sewa bangunan/
              Kencana                sama dan dalam entitas sepengendali/              Sales of goods and building rent
                                     Have the same key management
                                     personnel and under common control entity
          PT Wahana Lentera        Memiliki personil manajemen kunci yang          Penjualan barang, pembelian alat-alat dan
             Raya                    sama dan dalam entitas sepengendali/              bahan bangunan, pendapatan sewa
                                     Have the same key management                      bangunan kantor dan penggantian biaya/
                                     personnel and under common control entity         Sales of goods, purchase of tools and building
                                                                                       materials, office building rent income
                                                                                       and expense reimbursement
          PT Kencana               Memiliki personil manajemen kunci yang          Penjualan barang, pembelian alat-alat dan
              Lintasindo             sama dan dalam entitas sepengendali/              bahan bangunan dan penggantian biaya/
              Internasional          Have the same key management                      Sales of goods, purchase of tools and building
                                     personnel and under common control entity         materials and expense reimbursement
          PT Panca                 Memiliki personil manajemen kunci yang          Penjualan barang dan pembelian alat-alat dan
              Kalsiumindo            sama dan dalam entitas sepengendali/              bahan bangunan/Sales of goods and
              Perkasa                Have the same key management                      purchases of tools and building materials
                                     personnel and under common control entity




                                                                    52
Page 263
                                                                              The original consolidated financial statements included herein are in
                                                                                                                         the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                          PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                                     AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                       NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                                   FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                                 As of December 31, 2024
                  Pada Tanggal Tersebut                                                   and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                            (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                                  unless otherwise stated)

7.   SALDO DAN TRANSAKSI DENGAN PIHAK BERELASI                           7.   BALANCES AND       TRANSACTIONS WITH
     (lanjutan)                                                               RELATED PARTIES (continued)

     a.   Sifat hubungan pihak berelasi (lanjutan)                            a.   Nature of relationship (continued)

           Pihak-pihak berelasi/                  Sifat hubungan/                                            Jenis transaksi/
              Related parties                   Nature of relationship                                    Nature of transactions


          PT Megadepo              Memiliki personil manajemen kunci yang          Penjualan barang dan pembelian alat-alat dan
             Indonesia                sama dan dalam entitas sepengendali/             bahan bangunan/Sales of goods and
                                      Have the same key management                     purchases of tools and building materials
                                      personnel and under common control entity
          PT Caturkarda Depo       Memiliki personil manajemen kunci yang          Penjualan barang/Sales of goods
              Bangunan Tbk            sama dan dalam entitas sepengendali/
                                   Have the same key management
                                      personnel and under common control entity
          PT Bangun Bersama        Investasi pada ventura bersama/                 Penjualan barang, pendapatan sewa bangunan
              Solusindo               Investment in joint venture                       kantor dan pembelian bahan bangunan/
                                                                                        Sales of goods, office building rental income
                                                                                        and purchases of building materials
          Dewan Komisaris          Manajemen personil kunci/                       Gaji dan imbalan kerja jangka pendek
             dan Direksi/            Key management personnel                           lainnya/Salaries and other short-term
             Board of                                                                   compensation benefits
             Commissioners
             and Directors

     b.   Saldo dengan pihak berelasi                                         b.   Balances with related parties

                                                          2024                     2023
          Piutang usaha                                                                                                 Trade receivables
          PT Caturkarda Depo Bangunan Tbk                        8,018                    6,361          PT Caturkarda Depo Bangunan Tbk
          PT Megadepo Indonesia                                  5,202                    5,936                    PT Megadepo Indonesia
          PT Bangun Bersama Solusindo                            1,940                    1,135              PT Bangun Bersama Solusindo
          Lain-lain                                              1,159                      586                                    Others
          Jumlah                                               16,319                   14,018                                               Total

          Persentase terhadap jumlah aset                      0.15%                    0.13%                      Percentage to total assets

          Piutang lain-lain                                                                                                Other receivables
          PT Avia Avian Industri Pipa                          70,752                   46,376                     PT Avia Avian Industri Pipa
          PT Wahana Lentera Raya                               10,293                    6,086                      PT Wahana Lentera Raya
          Lain-lain                                             2,238                    4,076                                        Others
          Jumlah                                               83,283                   56,538                                               Total

          Persentase terhadap jumlah aset                      0.75%                    0.51%                      Percentage to total assets

          Aset hak-guna                                                                                                  Right-of-use assets
          PT Sarana Depo Kencana                               52,622                   51,460                       PT Sarana Depo Kencana
          Persentase terhadap jumlah aset                      0.48%                    0.46%                      Percentage to total assets




                                                                     53
Page 264
                                                                       The original consolidated financial statements included herein are in
                                                                                                                  the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                   PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                              AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                            FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                          As of December 31, 2024
                  Pada Tanggal Tersebut                                            and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                     (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                           unless otherwise stated)

7.   SALDO DAN TRANSAKSI DENGAN PIHAK BERELASI                    7.   BALANCES AND TRANSACTIONS WITH RELATED
     (lanjutan)                                                        PARTIES (continued)

     b.   Saldo dengan pihak berelasi (lanjutan)                       b.   Balances with related parties (continued)

                                                   2024                     2023
          Utang usaha                                                                                               Trade payables
          PT Avia Avian Industri Pipa                207,725                   160,993                   PT Avia Avian Industri Pipa
          PT Mitra Mulia Makmur                       75,906                    53,092                      PT Mitra Mulia Makmur
          PT Wahana Lentera Raya                      47,315                    32,379                    PT Wahana Lentera Raya
          PT Kencana Lintasindo Internasional         20,006                    23,444           PT Kencana Lintasindo Internasional
          PT Bangun Bersama Solusindo                  8,234                     6,305               PT Bangun Bersama Solusindo
          PT Panca Kalsiumindo Perkasa                 3,745                     3,108               PT Panca Kalsiumindo Perkasa
          Lain-lain                                       10                         -                                       Others
          Jumlah                                     362,941                   279,321                                                Total

          Persentase terhadap jumlah
            liabilitas                               25.40%                     22.43%                  Percentage to total liabilities

          Utang lain-lain                                                                                                Other payables
          Lain-lain                                        487                       121                                         Others

          Persentase terhadap jumlah
            liabilitas                                0.03%                      0.01%                  Percentage to total liabilities

          Pendapatan diterima dimuka                                                                                 Unearned revenue
          Lain-lain                                       1,611                    1,802                                        Others

          Persentase terhadap jumlah
            liabilitas                                0.11%                      0.14%                  Percentage to total liabilities

          Liabilitas sewa                                                                                            Lease liabilities
          PT Sarana Depo Kencana                      52,622                       4,186                     PT Sarana Depo Kencana

          Persentase terhadap jumlah                                                                                Percentage to total
            liabilitas                                3.68%                      0.34%                                     liabilities


     c.   Transaksi dengan pihak berelasi                              c.   Transactions with related parties

                                                   2024                     2023
          Pendapatan                                                                                                      Revenue
          PT Caturkarda Depo Bangunan Tbk             25,472                     23,126           PT Caturkarda Depo Bangunan Tbk
          PT Megadepo Indonesia                       20,185                     20,568                     PT Megadepo Indonesia
          PT Bangun Bersama Solusindo                  8,667                      4,545               PT Bangun Bersama Solusindo
          PT Avia Avian Industri Pipa                  3,520                      2,729                  PT Avia Avian Industri Pipa
          Lain-lain                                    2,239                      2,185                                     Others
          Jumlah                                      60,083                     53,153                                               Total

          Persentase terhadap jumlah
            pendapatan                                0.80%                      0.76%                   Percentage to total revenue




                                                              54
Page 265
                                                                           The original consolidated financial statements included herein are in
                                                                                                                      the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                       PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                                  AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                    NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                                FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                              As of December 31, 2024
                  Pada Tanggal Tersebut                                                and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                         (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                               unless otherwise stated)

7.   SALDO DAN TRANSAKSI DENGAN PIHAK BERELASI                        7.   BALANCES AND TRANSACTIONS WITH RELATED
     (lanjutan)                                                            PARTIES (continued)

     c.   Transaksi dengan pihak berelasi (lanjutan)                       c.   Transactions with related parties (continued)

                                                       2024                     2023
          Pembelian persediaan                                                                                Purchase of inventories
          PT Avia Avian Industri Pipa                  1,053,497                   875,847                   PT Avia Avian Industri Pipa
          PT Mitra Mulia Makmur                          315,826                   311,327                      PT Mitra Mulia Makmur
          PT Wahana Lentera Raya                         265,189                   193,168                    PT Wahana Lentera Raya
          PT Kencana Lintasindo Internasional            114,947                   107,078           PT Kencana Lintasindo Internasional
          PT Panca Kalsiumindo Perkasa                    36,718                    30,283               PT Panca Kalsiumindo Perkasa
          PT Bangun Bersama Solusindo                     36,533                    22,229               PT Bangun Bersama Solusindo
          Lain-lain                                        2,657                         6                                       Others
          Jumlah                                       1,825,367                 1,539,938                                                Total

          Persentase terhadap jumlah                                                                           Percentage to total cost of
            beban pokok penjualan                        44.19%                     40.17%                                goods sold

          Pendapatan sewa gedung kantor                                                                       Factory and office building
               dan pabrik                                                                                               rental income
          PT Wahana Lentera Raya                              1,211                    1,114                    PT Wahana Lentera Raya
          Lain-lain                                           2,725                    2,879                                       Others
          Jumlah                                              3,936                    3,993                                              Total

          Persentase terhadap jumlah
            pendapatan (beban)                                                                         Percentage to total other income
            lain-lain - neto                             27.60%                     50.25%                          (expenses) - net


     d.   Kompensasi manajemen kunci                                       d.   Key management compensation

          Gaji dan kompensasi kesejahteraan jangka pendek                       Salaries and other short-term compensation benefits
          lainnya yang dibebankan untuk Dewan Komisaris dan                     expensed to the Group’s Board of Commissioners and
          Direksi Grup untuk tahun yang berakhir pada tanggal                   Directors for the years ended December 31, 2024 and
          31 Desember 2024 dan 2023 masing-masing adalah                        2023 amounted to Rp 106,949 and Rp 99,820,
          sebesar Rp 106.949 dan Rp 99.820.                                     respectively.


8.   PIUTANG LAIN-LAIN                                                8.   OTHER RECEIVABLES

                                                       2024                     2023
     Pihak berelasi (Catatan 7)                           83,283                     56,538                       Related parties (Note 7)
     Pihak ketiga                                                                                                             Third parties
       Piutang bunga investasi pada                                                               Interest receivables from investment
         surat utang negara                               37,779                     40,100                    in government bonds
       Lain-lain                                           7,641                      9,231                                     Others
     Jumlah                                              128,703                   105,869                                                Total


     Berdasarkan penilaian manajemen atas kerugian kredit                       Based on management’s assessment of the expected
     ekspektasian, manajemen Grup berkeyakinan bahwa                            credit losses, the management of the Group believes
     kerugian kredit ekspektasian mendekati nol, sehingga                       that the expected credit losses are close to zero, as
     pencadangan penurunan nilai atas piutang lain-lain tidak                   such, the provision for impairment of other receivables
     diperlukan.                                                                is not necessary.




                                                                  55
Page 266
                                                                         The original consolidated financial statements included herein are in
                                                                                                                    the Indonesian language.


                  PT AVIA AVIAN Tbk
                DAN ENTITAS ANAKNYA                                                      PT AVIA AVIAN Tbk
         CATATAN ATAS LAPORAN KEUANGAN                                                 AND ITS SUBSIDIARIES
                   KONSOLIDASIAN                                                   NOTES TO THE CONSOLIDATED
               Tanggal 31 Desember 2024                                               FINANCIAL STATEMENTS
           serta Untuk Tahun yang Berakhir                                             As of December 31, 2024
                 Pada Tanggal Tersebut                                               and For the Year Then Ended
            (Disajikan dalam jutaan Rupiah,                                        (Expressed in millions of Rupiah,
                 kecuali dinyatakan lain)                                              unless otherwise stated)

9.   PERSEDIAAN                                                     9.   INVENTORIES

                                                     2024                     2023
     Barang jadi                                      1,051,043                  996,609                                   Finished goods
     Bahan baku                                         266,785                  303,031                                    Raw materials
     Barang dalam proses                                 41,994                   45,887                                  Work in process
     Barang promosi                                      36,584                   57,417                                Promotional goods
     Bahan pembantu                                      34,790                   33,355                                          Supplies
     Suku cadang                                          8,823                    6,055                                        Spareparts
     Persediaan dalam perjalanan                        132,686                   86,436                              Inventories in transit
     Sub-jumlah                                       1,572,705                1,528,790                                       Sub-total
     Penyisihan persediaan usang                                                                             Provision for obsolescence
       dan lambat bergerak                              (14,502 )                  (9,241 )              and slow-moving inventories
     Jumlah                                           1,558,203                1,519,549                                                Total


     Mutasi penyisihan persediaan usang dan lambat bergerak              Movement in the provision for obsolescence and slow-
     adalah sebagai berikut:                                             moving inventories are as follows:

                                                     2024                     2023
     Saldo awal                                             9,241                  13,291                               Beginning balance
     Penambahan (pemulihan)                                 5,261                  (4,050 )                             Addition (recovery)
     Saldo akhir                                         14,502                      9,241                                Ending balance


     Berdasarkan penelaahan atas kondisi dan tingkat                     Based on the review of the condition and turnover of the
     perputaran persediaan, manajemen Grup berkeyakinan                  inventory items, the Group’s management believes that the
     bahwa penyisihan persediaan usang dan lambat bergerak               provision for obsolescence and slow-moving inventories is
     tersebut cukup untuk menutup kemungkinan kerugian dari              adequate to cover any possible losses from the decrease in
     penurunan nilai persediaan.                                         the value of inventories.

     Pada tanggal 31 Desember 2024 dan 2023, seluruh                     As of December 31, 2024 and 2023, all inventories are
     persediaan dijaminkan atas fasilitas pinjaman dari                  pledged as collateral for the loan facilities from PT Bank
     PT Bank Mandiri (Persero) Tbk dengan perjanjian fidusia             Mandiri (Persero) Tbk with fiduciary agreements totalling
     senilai Rp 763.198 (Catatan 17).                                    Rp 763,198 (Note 17).

     Persediaan diasuransikan terhadap risiko kerugian                   Inventories are covered against losses from fire or theft and
     kebakaran atau pencurian dan risiko lainnya berdasarkan             other risks under blanket amounting to US$ 37.5 million and
     suatu paket polis dengan nilai pertanggungan sebesar                Rp 2,083,097 as of December 31, 2024, and US$ 57.6
     AS$ 37,5 juta dan Rp 2.083.097 pada tanggal                         million and Rp 1,890,012 as of December 31, 2023, which in
     31 Desember 2024, dan AS$ 57,6 juta dan Rp 1.890.012                management’s opinion are adequate to cover any possible
     pada tanggal 31 Desember 2023, yang menurut pendapat                losses arising from such risks.
     manajemen cukup untuk menutup kemungkinan kerugian
     atas risiko-risiko tersebut.


10. INVESTASI                                                       10. INVESTMENTS

                                                     2024                     2023
     Surat utang negara                               2,931,602                2,993,887                               Government bonds
     Reksa dana                                          21,298                   20,200                                    Mutual funds
     Deposito berjangka                                       -                1,740,000                                   Time deposits
     Jumlah                                           2,952,900                4,754,087                                                Total




                                                                56
Page 267
                                                                       The original consolidated financial statements included herein are in
                                                                                                                  the Indonesian language.


                  PT AVIA AVIAN Tbk
                DAN ENTITAS ANAKNYA                                                    PT AVIA AVIAN Tbk
         CATATAN ATAS LAPORAN KEUANGAN                                               AND ITS SUBSIDIARIES
                   KONSOLIDASIAN                                                 NOTES TO THE CONSOLIDATED
               Tanggal 31 Desember 2024                                             FINANCIAL STATEMENTS
           serta Untuk Tahun yang Berakhir                                           As of December 31, 2024
                 Pada Tanggal Tersebut                                             and For the Year Then Ended
            (Disajikan dalam jutaan Rupiah,                                      (Expressed in millions of Rupiah,
                 kecuali dinyatakan lain)                                            unless otherwise stated)

10. INVESTASI (lanjutan)                                           10. INVESTMENTS (continued)

    a.   Investasi jangka pendek                                       a.   Short-term investments

         Investasi jangka pendek terdiri atas deposito                      Short-term investments comprise of time deposits with
         berjangka dengan jangka waktu 6-12 bulan dari                      6-12 months term from PT Bank Rakyat Indonesia
         PT Bank Rakyat Indonesia (Persero) Tbk, PT Bank                    (Persero) Tbk, PT Bank Permata Tbk and PT Bank
         Permata Tbk dan PT Bank Danamon Indonesia Tbk.                     Danamon Indonesia Tbk. The outstanding balance as
         Saldo pada tanggal 31 Desember 2024 dan 2023                       of December 31, 2024 and 2023 amounted to nill and
         masing-masing     adalah   sebesar    nihil   dan                  Rp 1,740,000, respectively. All short-term investments
         Rp 1.740.000. Seluruh investasi jangka pendek                      are denominated in Rupiah. Annual interest rate of the
         didenominasi dalam mata uang Rupiah. Tingkat suku                  time deposits in December 31, 2024 and 2023 is
         bunga deposito tersebut pada 31 Desember 2024                      5.75% - 6.75% and 6.00% - 6.10%, respectively.
         dan 2023 masing-masing adalah sebesar 5,75% -
         6,75% dan 6,00% - 6,10%.

         Lihat Catatan 32 mengenai risiko kredit dari investasi             Refer to Note 32 on the credit risk of the short-term
         jangka pendek untuk memahami bagaimana Grup                        investments to understand how the Group manages
         mengelola dan mengukur kualitas kredit atas                        and measures the credit quality of short-term
         investasi jangka pendek.                                           investments.

    b.   Investasi pada surat utang negara                             b.   Investment in government bonds

         Seluruh investasi pada surat utang            negara               All investment in government bonds are denominated
         didenominasi dalam mata uang Rupiah.                               in Rupiah.

         SUN diterbitkan oleh Pemerintah Republik Indonesia                 SUN issued by the Government of the Republic of
         dengan tingkat suku bunga tetap antara 5,13%                       Indonesia bear fixed interest rates ranging from 5.13%
         hingga 8,25% per tahun dan akan jatuh tempo pada                   to 8.25% per annum and will be due on various dates
         berbagai tanggal antara tanggal 15 Juni 2025 sampai                from June 15, 2025 to April 15, 2032. Investment in
         dengan 15 April 2032. Investasi pada SUN akan                      government bonds is used for the Group’s working
         digunakan untuk keperluan modal kerja Grup dan                     capital purpose and construction of the factory in
         pembangunan pabrik di Cirebon, sehingga investasi                  Cirebon, as such, the investment is presented as
         tersebut disajikan sebagai aset lancar pada laporan                current assets in the consolidated statement of
         posisi keuangan konsolidasian.                                     financial position.

         Bunga atas SUN ini akan diterima setiap 6                          The interest of the SUN will be received every 6 (six)
         (enam) bulan sekali. Pendapatan bunga efektif yang                 months. Effective interest income earned during the
         diperoleh selama tahun berjalan pada 31 Desember                   year December 31, 2024 and 2023 amounted to
         2024 dan 2023 masing-masing adalah sebesar                         Rp 154,994 and Rp 149,646, respectively (Note 28).
         Rp 154.994 dan Rp 149.646 (Catatan 28).

         Pada tanggal 31 Desember 2024 dan 2023, kerugian                   As of December 31, 2024 and 2023, the net unrealised
         nilai wajar neto yang belum direalisasi atas investasi             loss of fair value on investment in debt instruments of
         pada instrumen utang masing-masing sebesar                         Rp 103,357 and Rp 56,408, respectively, was
         Rp 103.357 dan Rp 56.408 diakui dalam ekuitas                      recognised in equity under changes in fair value of
         sebagai perubahan nilai wajar atas investasi pada                  investment in government bonds.
         surat utang negara.

         Untuk tahun yang berakhir pada tanggal                             For the year ended December 31, 2024 and 2023, the
         31 Desember 2024 dan 2023, kerugian neto atas nilai                net loss in fair value amounted to nill and Rp 30,857,
         wajar masing-masing sebesar nihil dan Rp 30.857                    respectively, has been reclassified from equity to profit
         telah direklasifikasi dari ekuitas ke laba rugi tahun              or loss in current year.
         berjalan.

         Manajemen berpendapat bahwa tidak terdapat                         The management is of the opinion that there are no
         kejadian-kejadian atau perubahan keadaan yang                      events or changes in circumstances that indicate a
         mengindikasikan adanya bukti objektif penurunan                    permanent decline in the fair value of the financial
         nilai wajar aset keuangan pada nilai wajar melalui                 assets at FVOCI, therefore, no provision for impairment
         penghasilan komprehensif lain, sehingga, tidak                     is necessary.
         diperlukan cadangan penurunan.




                                                                  57
Page 268
                                                                        The original consolidated financial statements included herein are in
                                                                                                                   the Indonesian language.


                PT AVIA AVIAN Tbk
              DAN ENTITAS ANAKNYA                                                       PT AVIA AVIAN Tbk
       CATATAN ATAS LAPORAN KEUANGAN                                                  AND ITS SUBSIDIARIES
                 KONSOLIDASIAN                                                    NOTES TO THE CONSOLIDATED
             Tanggal 31 Desember 2024                                                FINANCIAL STATEMENTS
         serta Untuk Tahun yang Berakhir                                              As of December 31, 2024
               Pada Tanggal Tersebut                                                and For the Year Then Ended
          (Disajikan dalam jutaan Rupiah,                                         (Expressed in millions of Rupiah,
               kecuali dinyatakan lain)                                               unless otherwise stated)

11. PROPERTI INVESTASI                                               11. INVESTMENT PROPERTIES

                                                     2024                    2023
   Tanah                                                272,487                 272,487                                                  Land
   Bangunan                                              18,023                  17,626                                                Building
   Jumlah                                               290,510                 290,113                                                  Total


   Mutasi perubahan properti investasi adalah sebagai                   The movement of investment properties is as follows:
   berikut:

                                                     2024                    2023
   Saldo awal                                           290,113                 285,986                               Beginning balance
   Perubahan nilai wajar                                    397                   4,127                             Changes in fair value
   Saldo akhir                                          290,510                 290,113                                  Ending balance


   Properti investasi berupa bangunan yang merupakan                    Building held in investment properties represents the office
   gedung perkantoran yang terletak di Jl. Ahmad Yani                   building located on Jl. Ahmad Yani No. 317, Dukuh
   No. 317, Dukuh Menanggal, Gayungan, Surabaya, Jawa                   Menanggal, Gayungan, Surabaya, Jawa Timur and land
   Timur, serta tanah yang terletak di Makassar seluas                  located in Makassar covering an area of 175,798 m 2 that is
   175.798 m2 yang dimiliki sendiri oleh Grup. Bangunan                 owned by the Group. Buildings represents office building
   merupakan gedung perkantoran dalam kontrak Bangun                    under Build, Operate and Transfer (“BOT”) contract for
   Guna Serah (“BOT”) selama 30 tahun yang disewakan                    30 years that are rented to related parties, while the land is
   kepada pihak-pihak berelasi, sedangkan tanah merupakan               empty land for which management has not yet determined
   tanah kosong dimana manajemen belum menentukan                       the intended use.
   tujuan penggunaannya.

   Nilai wajar       properti  investasi    pada     tanggal            The fair values of investment properties as of December
   31 Desember 2024 dan 2023 didasarkan pada penilaian                  31, 2024 and 2023 are based on valuations performed by
   yang dilakukan oleh penilai independen, Kantor Jasa                  independent appraisals, Kantor Jasa Penilai Publik
   Penilai Publik (“KJPP”) Suhartanto Budhihardjo dan Rekan             (“KJPP”) Suhartanto Budhihardjo dan Rekan through its
   melalui laporannya masing-masing pada tanggal                        reports dated January 21, 2025 and January 31, 2024,
   21 Januari 2025 dan 31 Januari 2024 (untuk tanah) dan                respectively (for land) and KJPP Iskandar dan Rekan dated
   KJPP Iskandar dan Rekan masing-masing pada tanggal                   January 24, 2025 and February 13, 2024, respectively (for
   24 Januari 2025 dan 13 Februari 2024 (untuk bangunan).               building).

   Tidak terdapat perpindahan antar level atas pengukuran               There was no inter-level transfers                of    fair     value
   nilai wajar selama tahun berjalan.                                   measurement during the current year.

   Jumlah yang diakui dalam laporan laba rugi dan                       Amounts recognised in the consolidated statements of
   penghasilan komprehensif lain konsolidasian atas properti            profit or loss and other comprehensive income for
   investasi selama tahun 2024 dan 2023 adalah sebagai                  investment properties during the year 2024 and 2023 are as
   berikut:                                                             follows:

                                                     2024                    2023
   Pendapatan sewa berasal dari                                                                              Rental income derived from
     properti investasi                                     3,219                   2,960                      investment properties
   Biaya operasi langsung                                                                                     Direct operating expenses
     (termasuk perbaikan dan                                                                                   (including repairs and
     pemeliharaan)                                        (2,579 )                (4,360)                               maintenance)
   Perubahan nilai wajar                                     397                    4,127                          Changes in fair value

   Pengukuran nilai wajar atas properti investasi tanah                 The fair value measurement of land held in investment
   menggunakan Level 2 hierarki nilai wajar. Penilaian atas             properties uses Level 2 of the fair value hierarchy. The
   properti investasi tanah dilakukan dengan pendekatan                 valuation of land held in investment property is carried out
   pasar.                                                               using the market approach.




                                                                58
Page 269
                                                                             The original consolidated financial statements included herein are in
                                                                                                                        the Indonesian language.


                  PT AVIA AVIAN Tbk
                DAN ENTITAS ANAKNYA                                                           PT AVIA AVIAN Tbk
         CATATAN ATAS LAPORAN KEUANGAN                                                      AND ITS SUBSIDIARIES
                   KONSOLIDASIAN                                                        NOTES TO THE CONSOLIDATED
               Tanggal 31 Desember 2024                                                    FINANCIAL STATEMENTS
           serta Untuk Tahun yang Berakhir                                                  As of December 31, 2024
                 Pada Tanggal Tersebut                                                    and For the Year Then Ended
            (Disajikan dalam jutaan Rupiah,                                             (Expressed in millions of Rupiah,
                 kecuali dinyatakan lain)                                                   unless otherwise stated)

11. PROPERTI INVESTASI (lanjutan)                                       11. INVESTMENT PROPERTIES (continued)

    Input yang paling signifikan dalam pendekatan penilaian                 The most significant input in this approach is the land price
    ini adalah asumsi harga tanah per meter persegi (m2) yang               per square meter (m2) assumption which is based on the
    didasarkan dari harga pasar tanah di sekitar lokasi,                    market price of land located in the vicinity, adjusted for the
    disesuaikan dengan perbedaan atribut utama seperti jenis                difference in main attributes such as the type and rights on
    dan hak yang melekat pada properti, lokasi, karakteristik               the property, location, physical characteristics, size and use
    fisik, ukuran, dan penggunaan aset, sebagai berikut:                    of the assets, as follows:

                                                      2024                         2023
    Tanah                                                                                                                                Land
    Harga per m2 (nilai penuh)                         1,550,000                    1,550,000                       Price per m2 (full amount)

    Pengukuran nilai wajar atas properti investasi bangunan                 The fair value measurement of building held in investment
    menggunakan Level 3 hierarki nilai wajar. Penilaian atas                properties uses Level 3 of the fair value hierarchy. The
    properti investasi bangunan dengan pendekatan                           valuation of building held in investment property is carried
    pendapatan (metode arus kas diskontoan). Input yang                     out using an income approach (discounted cash flow
    tidak dapat diobservasi yang digunakan dalam                            method). Unobservable input used in determining the fair
    menentukan nilai wajar properti investasi bangunan adalah               value of building held in investment properties is as follows:
    sebagai berikut:

                                                      2024                         2023
    Bangunan                                                                                                                         Building
    Tarif sewa per m2 (termasuk biaya jasa -                                                            Rental rate per m2 (including - service
       nilai penuh)                                    2,230,000                    2,200,000                          charge full amount)
    Tingkat diskonto                                     10.02%                       10.62%                                     Discount rate

    Rincian properti investasi Grup yang diukur pada nilai                  Details of the Group’s investment properties measured at
    wajar dan informasi hirarki nilai wajar adalah sebagai                  fair value and information about the fair value hierarchy are
    berikut:                                                                as follows:

                                                                 2024

                                 Level 1         Level 2                 Level 3                Total

    Tanah tidak dipakai                    -         272,487                        -             272,487                            Unused land
    Bangunan yang
       disewakan                           -                 -               18,023                18,023                  Leased-out properties

    Jumlah                                 -         272,487                 18,023               290,510                                   Total


                                                                 2023

                                 Level 1         Level 2                 Level 3                Total

    Tanah tidak dipakai                    -         272,487                        -             272,487                            Unused land
    Bangunan yang
       disewakan                           -                 -               17,626                17,626                  Leased-out properties

    Jumlah                                 -         272,487                 17,626               290,113                                   Total




                                                                    59
Page 270
                                                                                       The original consolidated financial statements included herein are in
                                                                                                                                  the Indonesian language.


                  PT AVIA AVIAN Tbk
                DAN ENTITAS ANAKNYA                                                                    PT AVIA AVIAN Tbk
         CATATAN ATAS LAPORAN KEUANGAN                                                               AND ITS SUBSIDIARIES
                   KONSOLIDASIAN                                                                 NOTES TO THE CONSOLIDATED
               Tanggal 31 Desember 2024                                                             FINANCIAL STATEMENTS
           serta Untuk Tahun yang Berakhir                                                           As of December 31, 2024
                 Pada Tanggal Tersebut                                                             and For the Year Then Ended
            (Disajikan dalam jutaan Rupiah,                                                      (Expressed in millions of Rupiah,
                 kecuali dinyatakan lain)                                                            unless otherwise stated)

11. PROPERTI INVESTASI (lanjutan)                                               11. INVESTMENT PROPERTIES (continued)

    Sensitivitas dari nilai   wajar   properti   investasi                             Sensitivity of fair value of building investment property on
    bangunan terhadap asumsi utama adalah sebagai berikut:                             the principal assumptions is as follows:

                                                              Perubahan nilai wajar/Changes in fair value
                                                                 Kenaikan asumsi/         Penurunan asumsi/
                                    Perubahan asumsi/               Increase in               Decrease in
                                       Changes in                  assumption                assumption
             Asumsi                    assumption                 2024         2023          2024         2023                        Assumptions

   Bangunan                                                                                                                                         Building
   Tarif sewa (termasuk                     1%                Kenaikan          Kenaikan        Penurunan      Penurunan               Rental rate (including
     biaya jasa)                                               sebesar/          sebesar/        sebesar/       sebesar/                  service charge)
                                                               increase          increase        decrease       decrease
                                                               by 0.94%          by 0.96%        by 0.94%       by 0.96%
   Tingkat diskonto                         1%                Penurunan         Penurunan       Kenaikan       Kenaikan                         Discount rate
                                                               sebesar/          sebesar/        sebesar/       sebesar/
                                                               decrease          decrease        increase       increase
                                                               by 0.82%          by 0.91%        by 0.83%       by 0.92%



12. ASET TETAP - NETO                                                           12. FIXED ASSETS - NET

                                                                                2024

                           Saldo awal/                                                                               Saldo akhir/
                           Beginning       Penambahan/       Pengurangan/        Reklasifikasi/       Revaluasi/       Ending
                            balance          Additions        Deductions        Reclassifications    Revaluation       balance

    Nilai revaluasi                                                                                                                         Revalued amount
    Tanah                       543,234                  -                  -                    -              -          543,234                     Land

    Harga perolehan                                                                                                                                          Cost
    Kepemilikan langsung                                                                                                                      Direct ownership
    Bangunan dan                                                                                                                                   Buildings and
        prasarana               399,917            2,586               (57)                10,077               -          412,523           improvements
    Mesin dan                                                                                                                                    Machinery and
        peralatan               814,580            8,448            (2,015)                48,395               -          869,408                equipment
    Instalasi listrik            97,733              420                  -                   340               -           98,493       Electricity installations
    Kendaraan                   325,524           62,388           (31,017)                     -               -          356,895                       Vehicles
    Peralatan kantor            215,545           39,684            (1,451)                     -               -          253,778            Office equipment

    Sub-jumlah                 2,396,533         113,526           (34,540)                58,812               -        2,534,331                     Sub-total

    Aset tetap dalam                                                                                                                              Assets under
       pembangunan               93,712          319,661                    -             (58,812)              -          354,561              construction

    Sub-jumlah                 2,490,245         433,187           (34,540)                      -              -        2,888,892                     Sub-total

    Akumulasi                                                                                                                                     Accumulated
        penyusutan                                                                                                                            depreciation
    Kepemilikan langsung                                                                                                                      Direct ownership
    Bangunan dan                                                                                                                                   Buildings and
        prasarana                94,564           13,223               (25)                      -              -          107,762           improvements
    Mesin dan                                                                                                                                    Machinery and
        peralatan               420,239           61,123            (1,311)                      -              -          480,051                equipment
    Instalasi listrik            43,841            8,368                  -                      -              -           52,209       Electricity installations
    Kendaraan                   139,834           41,474           (22,774)                      -              -          158,534                       Vehicles
    Peralatan kantor            132,604           28,046              (611)                      -              -          160,039            Office equipment

    Sub-jumlah                  831,082          152,234           (24,721)                      -              -          958,595                     Sub-total

    Nilai buku                 1,659,163                                                                                 1,930,297             Net book value




                                                                         60
Page 271
                                                                                       The original consolidated financial statements included herein are in
                                                                                                                                  the Indonesian language.


                  PT AVIA AVIAN Tbk
                DAN ENTITAS ANAKNYA                                                                    PT AVIA AVIAN Tbk
         CATATAN ATAS LAPORAN KEUANGAN                                                               AND ITS SUBSIDIARIES
                   KONSOLIDASIAN                                                                 NOTES TO THE CONSOLIDATED
               Tanggal 31 Desember 2024                                                             FINANCIAL STATEMENTS
           serta Untuk Tahun yang Berakhir                                                           As of December 31, 2024
                 Pada Tanggal Tersebut                                                             and For the Year Then Ended
            (Disajikan dalam jutaan Rupiah,                                                      (Expressed in millions of Rupiah,
                 kecuali dinyatakan lain)                                                            unless otherwise stated)

12. ASET TETAP - NETO (lanjutan)                                                12. FIXED ASSETS - NET (continued)

                                                                                2023

                           Saldo awal/                                                                                  Saldo akhir/
                           Beginning       Penambahan/       Pengurangan/        Reklasifikasi/        Revaluasi/         Ending
                            balance          Additions        Deductions        Reclassifications     Revaluation         balance

    Nilai revaluasi                                                                                                                         Revalued amount
    Tanah                       540,322                  -                  -                    -           2,912            543,234                  Land

    Harga perolehan                                                                                                                                          Cost
    Kepemilikan langsung                                                                                                                      Direct ownership
    Bangunan dan                                                                                                                                   Buildings and
        prasarana               377,175           2,029                     -              20,713                -            399,917        improvements
    Mesin dan                                                                                                                                    Machinery and
        peralatan               770,821           7,420              (3,594 )              39,933                -            814,580             equipment
    Instalasi listrik            94,601             516                   -                 2,616                -             97,733    Electricity installations
    Kendaraan                   301,189          62,221             (37,886 )                   -                -            325,524                    Vehicles
    Peralatan kantor            178,760          37,228                (443 )                   -                -            215,545         Office equipment

    Sub-jumlah                 2,262,868        109,414             (41,923 )              63,262            2,912          2,396,533                  Sub-total

    Aset tetap dalam                                                                                                                              Assets under
       pembangunan               50,665         106,309                     -             (63,262)               -             93,712           construction

    Sub-jumlah                 2,313,533        215,723             (41,923 )                    -           2,912          2,490,245                  Sub-total

    Akumulasi                                                                                                                                     Accumulated
        penyusutan                                                                                                                            depreciation
    Kepemilikan langsung                                                                                                                      Direct ownership
    Bangunan dan                                                                                                                                   Buildings and
        prasarana                82,053          12,511                     -                    -               -             94,564        improvements
    Mesin dan                                                                                                                                    Machinery and
        peralatan               365,258          57,703              (2,722 )                    -               -            420,239             equipment
    Instalasi listrik            35,221           8,620                   -                      -               -             43,841    Electricity installations
    Kendaraan                   132,620          37,161             (29,947 )                    -               -            139,834                    Vehicles
    Peralatan kantor            110,295          22,521                (212 )                    -               -            132,604         Office equipment

    Sub-jumlah                  725,447         138,516             (32,881 )                    -               -            831,082                  Sub-total

    Nilai buku                 1,588,086                                                                                    1,659,163          Net book value



    Beban penyusutan dibebankan sebagai berikut:                                       The depreciation expenses were charged to the following:

                                                             2024                           2023
    Beban pabrikasi (Catatan 26)                                  34,775                         32,099                       Factory overhead (Note 26)
    Beban penjualan (Catatan 27)                                  74,485                         69,286                       Selling expenses (Note 27)
    Beban umum dan administrasi                                                                                      General and administrative expenses
      (Catatan 27)                                                42,974                         37,131                                      (Note 27)
    Jumlah                                                      152,234                        138,516                                                  Total


    Nilai perolehan dari setiap aset tetap yang telah                                  The costs of fixed assets that have been fully depreciated
    disusutkan penuh namun masih digunakan pada                                        but still being utilised as of December 31, 2024 and 2023
    31 Desember 2024 dan 2023 masing-masing sebesar                                    are amounted to Rp 119,872 and Rp 106,921, respectively,
    Rp 119.872 dan Rp 106.921, terdiri atas mesin dan                                  consisting of machinery and equipment, electricity
    peralatan, instalasi listrik dan peralatan kantor.                                 installations and office
                                                                                       equipment.

    Rincian pelepasan aset tetap adalah sebagai berikut:                               The details of disposal of fixed assets are as follows:

                                                             2024                           2023
    Penerimaan dari pelepasan aset tetap                          11,156                         14,094         Proceeds from disposal of fixed assets
    Nilai buku aset tetap yang dijual                             (9,819 )                       (9,042)       Net book value of disposed fixed assets

    Keuntungan pelepasan aset tetap                                                                                    Gain on disposal of fixed assets
      (Catatan 30)                                                  1,337                            5,052                                 (Note 30)




                                                                          61
Page 272
                                                                          The original consolidated financial statements included herein are in
                                                                                                                     the Indonesian language.


                 PT AVIA AVIAN Tbk
               DAN ENTITAS ANAKNYA                                                        PT AVIA AVIAN Tbk
        CATATAN ATAS LAPORAN KEUANGAN                                                   AND ITS SUBSIDIARIES
                  KONSOLIDASIAN                                                     NOTES TO THE CONSOLIDATED
              Tanggal 31 Desember 2024                                                 FINANCIAL STATEMENTS
          serta Untuk Tahun yang Berakhir                                               As of December 31, 2024
                Pada Tanggal Tersebut                                                 and For the Year Then Ended
           (Disajikan dalam jutaan Rupiah,                                          (Expressed in millions of Rupiah,
                kecuali dinyatakan lain)                                                unless otherwise stated)

12. ASET TETAP - NETO (lanjutan)                                      12. FIXED ASSETS - NET (continued)

    Aset tetap dalam pembangunan merupakan proyek yang                    Fixed assets under construction represents projects that
    masih belum selesai pada tanggal laporan keuangan                     have not been completed at the date of the consolidated
    konsolidasian dengan rincian sebagai berikut:                         financial statements with the details as follows:

                                                        Perkiraan % penyelesaian/
                                                        Estimated % of completion
                                                         2024                  2023
    Bangunan dan prasarana                                20% - 80%              5% - 70%                     Buildings and improvements
    Mesin dan peralatan                                   70% - 95%              5% - 90%                       Machinery and equipment
    Instalasi listrik                                     90% - 95%              5% - 80%                            Electricity installations

    Aset tetap dalam pembangunan pada tanggal                             The estimated completion date of the assets under
    31 Desember 2024 dan 2023 diperkirakan akan selesai                   construction as of December 31, 2024 and 2023 will be in
    pada tahun 2025-2026.                                                 2025-2026.

    Tidak ada perbedaan yang material antara nilai wajar dan              There is no material difference between the fair value and
    nilai tercatat dari aset tetap Grup selain tanah.                     carrying value of the Group’s fixed assets other than land.

    Jika tanah milik Grup diukur berdasarkan biaya historis,              Had the Group’s land been measured on historical cost
    jumlah tercatatnya akan menjadi Rp 300.962 pada tanggal               basis, their carrying amount would have been Rp 300,962
    31 Desember 2024 dan 2023.                                            as of December 31, 2024 and 2023.

    Grup memiliki beberapa bidang tanah dengan rincian                    The Group has land properties with the details as follows:
    sebagai berikut:

                 Lokasi/Location                        Luasan/Area                      Penggunaan lahan/Land utilization

    Sidoarjo                                             105,121 m2         Pabrik/Factory
    Serang                                                36,880 m2         Pabrik/Factory
    Medan                                                 22,652 m2         Pabrik/Factory
    Cirebon                                              110,211 m2         Pabrik/Factory
    Bekasi                                                2,992 m2          Pabrik/Factory

    Hak atas tanah Grup berupa Sertifikat Hak Guna                        The Group’s land represents land-use rights (“SHGB”) that
    Bangunan (“SHGB”) yang memiliki masa berlaku antara                   will expire between 2026 until 2049. Management believes
    tahun 2026 hingga 2049. Manajemen berpendapat bahwa                   that the SHGB can be extended.
    SHGB tersebut dapat diperpanjang.

    Tanah diukur dengan metode revaluasian. Pengukuran                    Land is measured using the revaluation model. The fair
    nilai wajar tahun 2023 dilakukan oleh KJPP Suhartanto                 value measurement for the year 2023 was carried out by
    Budhihardjo dan Rekan, selaku penilai independen, dalam               KJPP Suhartanto Budhihardjo dan Rekan, an independent
    laporannya tanggal 31 Januari 2024 dan 15 Februari 2024.              appraiser, in its reports dated January 31, 2024 and
                                                                          February 15, 2024.

    Pengukuran nilai wajar atas tanah menggunakan Level 2                 The fair value measurement of land uses Level 2 of the fair
    hierarki nilai wajar. Penilaian atas tanah dilakukan dengan           value hierarchy. The valuation of the land is carried out
    pendekatan pasar. Input yang paling signifikan dalam                  using the market approach. The most significant input in
    pendekatan penilaian ini adalah asumsi harga tanah per                this approach is the land price per square metre (m 2)
    meter persegi (m2) yang didasarkan dari harga pasar                   assumption which is based on the market price of land
    tanah di sekitar lokasi, disesuaikan dengan perbedaan                 located in the vicinity, adjusted for the difference in main
    atribut utama seperti jenis dan hak yang melekat pada                 attributes such as the type and rights on the property,
    properti, lokasi, karakteristik fisik, ukuran, dan penggunaan         location, physical characteristics, size and use of the
    aset. Asumsi harga tanah per m2 yang digunakan pada                   assets. The assumption land price per m2 used in 2023
    tahun 2023 adalah berkisar antara Rp 1.190.000 - Rp                   ranges from Rp 1,190,000 - Rp 4,000,000 (full amount) per
    4.000.000 (nilai penuh) per m2.                                       m2.




                                                                    62
Page 273
                                                                            The original consolidated financial statements included herein are in
                                                                                                                       the Indonesian language.


                 PT AVIA AVIAN Tbk
               DAN ENTITAS ANAKNYA                                                          PT AVIA AVIAN Tbk
        CATATAN ATAS LAPORAN KEUANGAN                                                     AND ITS SUBSIDIARIES
                  KONSOLIDASIAN                                                       NOTES TO THE CONSOLIDATED
              Tanggal 31 Desember 2024                                                   FINANCIAL STATEMENTS
          serta Untuk Tahun yang Berakhir                                                 As of December 31, 2024
                Pada Tanggal Tersebut                                                   and For the Year Then Ended
           (Disajikan dalam jutaan Rupiah,                                            (Expressed in millions of Rupiah,
                kecuali dinyatakan lain)                                                  unless otherwise stated)

12. ASET TETAP - NETO (lanjutan)                                        12. FIXED ASSETS - NET (continued)

    Pada tanggal 31 Desember 2024 dan 2023, aset tetap                      As of December 31, 2024 and 2023, certain fixed assets are
    tertentu dijaminkan atas fasilitas pinjaman dari PT Bank                pledged as collateral for the loan facilities from PT Bank
    Mandiri (Persero) Tbk dan PT Bank OCBC NISP Tbk                         Mandiri (Persero) Tbk and PT Bank OCBC NISP Tbk with
    dengan perjanjian fidusia dan perjanjian Hak Tanggungan                 fiduciary and mortgage agreements over certain fixed
    terhadap aset tetap tertentu senilai Rp 967.990                         assets amounting to Rp 967,990 (Note 17).
    (Catatan 17).

    Aset tetap, kecuali tanah, diasuransikan terhadap risiko                Fixed assets, except for land, are covered against losses
    kerugian kebakaran dan risiko lain berdasarkan suatu                    from fire and other risks under blanket policies amounting to
    paket polis dengan nilai pertanggungan sebesar AS$ 50,1                 US$ 50.1 million and Rp 1,580,524 as of December 31,
    juta dan Rp 1.580.524 pada tanggal 31 Desember 2024                     2024 and US$ 49.2 million and Rp 1,521,113 as of
    dan AS$ 49,2 juta dan Rp 1.521.113 pada tanggal                         December 31, 2023. Management is of the opinion that the
    31 Desember 2023. Manajemen berpendapat bahwa nilai                     sum insured is adequate to cover any possible losses
    pertanggungan     tersebut     cukup     untuk    menutup               arising from such risks.
    kemungkinan kerugian atas risiko-risiko tersebut.

    Berdasarkan evaluasi yang dilakukan manajemen, tidak                    Based on management’s evaluation, there were no events
    terdapat kejadian atau perubahan atas keadaan yang                      or changes in circumstances which might indicate an
    menunjukkan adanya penurunan nilai aset tetap pada                      impairment in the value of fixed assets as of
    tanggal 31 Desember 2024 dan 2023.                                      December 31, 2024 and 2023.

    Pada tanggal 31 Desember 2024 dan 2023 tidak ada aset                   As of December 31, 2024 and 2023 there were no idle fixed
    tetap yang tidak digunakan.                                             assets.


13. INVESTASI PADA VENTURA BERSAMA                                      13. INVESTMENT IN JOINT VENTURE

                                                      2024                       2023
    Saldo awal                                            17,298                      16,400                                Beginning balance
    Bagian atas laba
      ventura bersama                                        2,678                        898                Share of profit of a joint venture
    Nilai tercatat                                        19,976                      17,298                                Carrying amount


    Pada tanggal 31 Desember 2024 dan 2023, ventura                         As of December 31, 2024 and 2023, the joint venture of the
    bersama yang dimiliki oleh Grup adalah sebagai berikut:                 Group is follows:

         Nama entitas/             Domisili/           Persentase kepemilikan/                                  Kegiatan usaha/
          Entity name              Domicile            Percentage of ownership                                  Business activity

    PT Bangun Bersama                                                                           Industri semen, mortar dan beton/
      Solusindo                    Indonesia                       50%                          Industry of cement, mortar and concrete

                                                      2024                       2023
    Aset lancar                                           52,842                      42,192                                  Current assets
    Aset tidak lancar                                        694                         870                             Non-current assets
    Liabilitas jangka pendek                              13,002                       8,053                                Current liabilities
    Liabilitas jangka panjang                                583                         412                            Non-current liabilities
    Pendapatan                                            40,757                      26,065                                         Revenue
    Laba tahun berjalan                                    5,356                       1,797                               Profit for the year
    Jumlah laba komprehensif tahun                                                                               Total comprehensive profit
       berjalan                                              5,356                      1,797                                 for the year
    Arus kas yang diperoleh dari                                                                                     Cash flows provided by
       (digunakan untuk) aktivitas operasi                   1,672                      (286)                (used in) operating activities
    Arus kas yang digunakan untuk                                                                                         Cash flows used in
       aktivitas investasi                                      (16 )                    (60)                          investing activities




                                                                  63
Page 274
                                                                        The original consolidated financial statements included herein are in
                                                                                                                   the Indonesian language.


                PT AVIA AVIAN Tbk
              DAN ENTITAS ANAKNYA                                                       PT AVIA AVIAN Tbk
       CATATAN ATAS LAPORAN KEUANGAN                                                  AND ITS SUBSIDIARIES
                 KONSOLIDASIAN                                                    NOTES TO THE CONSOLIDATED
             Tanggal 31 Desember 2024                                                FINANCIAL STATEMENTS
         serta Untuk Tahun yang Berakhir                                              As of December 31, 2024
               Pada Tanggal Tersebut                                                and For the Year Then Ended
          (Disajikan dalam jutaan Rupiah,                                         (Expressed in millions of Rupiah,
               kecuali dinyatakan lain)                                               unless otherwise stated)

13. INVESTASI PADA VENTURA BERSAMA (lanjutan)                       13. INVESTMENT IN JOINT VENTURE (continued)

   Rekonsiliasi atas ringkasan informasi keuangan yang                 The reconciliation of the summarised financial information
   disajikan terhadap nilai buku dari kepentingan Grup dalam           presented to the carrying amount of the Group’s interests in
   ventura bersama adalah sebagai berikut:                             the joint venture is as follows:

                                                     2024                    2023
   Pada awal tahun                                       34,597                   32,800                    At the beginning of the year
   Jumlah penghasilan                                                                                      Total comprehensive income
     komprehensif tahun berjalan                            5,356                   1,797                                for the year
   Pada akhir tahun                                      39,953                   34,597                           At the end of the year
   Persentase kepemilikan                                  50%                      50%                         Percentage of ownership

   Nilai tercatat                                        19,976                   17,298                                Carrying amount


   Pada tanggal 31 Desember 2024 dan 2023, manajemen                   As of December 31, 2024 and 2023, management believes
   berkeyakinan bahwa tidak terdapat indikasi penurunan                that there are no impairment indicators on the carrying
   nilai atas nilai tercatat investasi pada ventura bersama.           amounts of investment in joint venture.


14. UTANG USAHA                                                     14. TRADE PAYABLES

                                                     2024                    2023
   Pihak berelasi - Rupiah (Catatan 7)                  362,941                 279,321                Related parties - Rupiah (Note7)
   Pihak ketiga:                                                                                                             Third parties:
   Rupiah                                               269,565                 255,394                                            Rupiah
   Dolar AS                                              79,732                  75,147                                         US Dollar
   CNY                                                   63,499                  21,896                                              CNY
   Euro                                                   7,307                  16,845                                              Euro
   SGD                                                    4,456                   2,055                                              SGD
   GBP                                                      201                       -                                              GBP
   Sub-jumlah                                           424,760                 371,337                                           Sub-total
   Jumlah                                               787,701                 650,658                                                Total


   Utang usaha yang merupakan bagian dari pengaturan                   Trade payables of which amounts that are part of supplier
   pembiayaan pemasok sebesar Rp 75.906 pada tanggal                   finance arrangements as of December 31, 2024 amounted
   31 Desember 2024 (Catatan 33).                                      to Rp 75,906 (Note 33).

   Jangka waktu kredit dari pembelian bahan baku utama                 Purchases of raw and indirect materials, have credit terms
   dan pembantu, berkisar 30 sampai dengan 60 hari (tidak              of 30 to 60 days (excluding supplier finance arrangements)
   termasuk pengaturan keuangan pemasok) dan 45 hingga                 and 45 to 60 days (including supplier finance
   60 hari (termasuk pengaturan keuangan pemasok).                     arrangements).


15. BEBAN AKRUAL                                                    15. ACCRUED EXPENSES

                                                     2024                    2023
   Pemasaran dan promosi                                187,362                 237,647                         Marketing and promotion
   Ongkos angkut                                         31,184                  26,938                                          Freight
   Komisi penjualan                                      28,659                  32,326                               Sales commission
   Lain-lain                                              5,456                   4,924                                          Others
   Jumlah                                               252,661                 301,835                                                Total




                                                                64
Page 275
                                                                                     The original consolidated financial statements included herein are in
                                                                                                                                the Indonesian language.


                   PT AVIA AVIAN Tbk
                 DAN ENTITAS ANAKNYA                                                                 PT AVIA AVIAN Tbk
          CATATAN ATAS LAPORAN KEUANGAN                                                            AND ITS SUBSIDIARIES
                    KONSOLIDASIAN                                                              NOTES TO THE CONSOLIDATED
                Tanggal 31 Desember 2024                                                          FINANCIAL STATEMENTS
            serta Untuk Tahun yang Berakhir                                                        As of December 31, 2024
                  Pada Tanggal Tersebut                                                          and For the Year Then Ended
             (Disajikan dalam jutaan Rupiah,                                                   (Expressed in millions of Rupiah,
                  kecuali dinyatakan lain)                                                         unless otherwise stated)

16. SEWA                                                                      16. LEASE

   Grup memiliki kontrak sewa bangunan yang digunakan                                The Group has lease contracts for buildings used in its
   dalam operasinya. Grup dibatasi untuk menyewakan                                  operation. The Group is restricted from assigning and
   kembali aset sewaan. Kontrak sewa ini merupakan sewa                              subleasing the leased assets. These lease contracts
   bangunan oleh PT TKTW dan PT TKBI, dari PT Sarana                                 represent leases for buildings by PT TKTW and PT TKBI,
   Depo Kencana, pihak berelasi, dan dari pihak ketiga, yang                         from PT Sarana Depo Kencana, a related party, and from
   digunakan sebagai kantor cabang.                                                  third parties, which are used as branch offices.

   Grup juga memiliki sewa peralatan kantor dengan nilai                             The Group also has certain leases of office equipment with
   yang rendah. Grup menerapkan pengecualian pengakuan                               low value. The Group applies the ‘lease of low-value assets’
   ‘sewa aset bernilai rendah’ untuk sewa tersebut.                                  recognition exemptions for these leases.

   Di bawah ini adalah jumlah tercatat dari aset hak-guna                            Below are the carrying amounts of right-of-use assets
   yang diakui pada laporan posisi keuangan konsolidasian                            recognised on the Group’s consolidated statement of
   Grup dan mutasinya:                                                               financial position and its movements:

                                                                            2024

                                            Saldo awal/                                                    Saldo akhir/
                                            Beginning       Penambahan/            Pengurangan/              Ending
                                             balance          Additions              Deduction               balance

   Harga perolehan                                                                                                                         Acquisition cost
   Bangunan                                       235,090           121,861              (127,615 )              229,336                          Buildings

   Akumulasi penyusutan                                                                                                      Accumulated depreciation
   Bangunan                                        84,539            91,463              (127,615 )               48,387                    Buildings

   Nilai tercatat                                 150,551                                                        180,949                Carrying amount


                                                                            2023*)

                                            Saldo awal/                                                    Saldo akhir/
                                            Beginning       Penambahan/            Pengurangan/              Ending
                                             balance          Additions              Deduction               balance

   Harga perolehan                                                                                                                         Acquisition cost
   Bangunan                                       322,006            92,411              (179,327)               235,090                          Buildings

   Akumulasi penyusutan                                                                                                      Accumulated depreciation
   Bangunan                                       189,816            74,050              (179,327 )               84,539                    Buildings

   Nilai tercatat                                 132,190                                                        150,551                Carrying amount

   * Setelah direklasifikasi (Catatan 36)
   )
                                                                                                                                       * As reclassified (Note 36)
                                                                                                                                       )




   Jumlah yang diakui dalam laporan laba rugi dan                                    Amounts recognised in the consolidated statement of profit
   penghasilan komprehensif lain konsolidasian adalah                                or loss and other comprehensive income are as follows:
   sebagai berikut:

                                                             2024                         2023
   Beban penyusutan aset hak-guna -                                                                              Depreciation of right-of-use assets -
     beban penjualan (Catatan 27)                               90,604                         73,478                   selling expenses (Note 27)
   Beban penyusutan aset hak-guna -                                                                              Depreciation of right-of-use assets -
     beban administrasi dan umum                                                                              general and administrative expenses
     (Catatan 27)                                                    859                             572                                  (Note 27)
   Beban bunga atas liabilitas sewa                                                                               Interest expense on lease liabilities
     (Catatan 29)                                                   2,011                        3,724                                    (Note 29)
   Sewa aset bernilai rendah dan                                                                                                 Low value assets and
     sewa jangka pendek                                              691                             759                           short-term lease
   Jumlah                                                       94,165                         78,533                                                    Total




                                                                        65
Page 276
                                                                        The original consolidated financial statements included herein are in
                                                                                                                   the Indonesian language.


                 PT AVIA AVIAN Tbk
               DAN ENTITAS ANAKNYA                                                      PT AVIA AVIAN Tbk
        CATATAN ATAS LAPORAN KEUANGAN                                                 AND ITS SUBSIDIARIES
                  KONSOLIDASIAN                                                   NOTES TO THE CONSOLIDATED
              Tanggal 31 Desember 2024                                               FINANCIAL STATEMENTS
          serta Untuk Tahun yang Berakhir                                             As of December 31, 2024
                Pada Tanggal Tersebut                                               and For the Year Then Ended
           (Disajikan dalam jutaan Rupiah,                                        (Expressed in millions of Rupiah,
                kecuali dinyatakan lain)                                              unless otherwise stated)

16. SEWA (lanjutan)                                                 16. LEASE (continued)

    Di bawah ini adalah jumlah tercatat dari liabilitas sewa            Below are the carrying amounts of lease liabilities
    yang diakui pada laporan posisi keuangan konsolidasian              recognised on the Group’s consolidated statement of
    Grup:                                                               financial position:

                                                     2024                    2023
    Saldo awal                                           26,690                   73,533                               Beginning balance
    Penambahan                                           82,261                   11,993                                       Additions
    Pembayaran                                          (24,758 )                (58,836 )                                     Payments
    Saldo akhir                                          84,193                   26,690                                 Ending balance
    Dikurangi: Bagian lancar                            (64,777 )                (10,965 )                          Less: Current portion
    Bagian tidak lancar                                  19,416                   15,725                            Non-current portion


    Pembayaran sewa operasi minimum di masa mendatang,                 Future minimum lease payments under operating leases
    serta nilai kini atas pembayaran minimum sewa operasi              together with the present value of the minimum lease
    pada tanggal 31 Desember 2024 dan 2023 adalah sebagai              payments as of December 31, 2024 and 2023 were as
    berikut:                                                           follows:

                                                     2024                    2023
    Liabilitas sewa bruto - pembayaran                                                                            Lease liabilities - future
       sewa dimasa mendatang                                                                                         lease payments
    Tidak lebih dari 1 tahun                             66,112                   11,910                               Less than 1 year
    1-5 tahun                                            14,767                   13,709                                          1-5 years
    Lebih dari 5 tahun                                   18,604                    9,484                              More than 5 years
    Jumlah                                               99,483                   35,103                                               Total
    Beban keuangan dimasa depan atas                                                                              Future finance charges
      liabilitas sewa                                   (15,290 )                 (8,413 )                          of lease liabilities
    Nilai kini liabilitas sewa                           84,193                   26,690             Present value of lease liabilities


                                                     2024                    2023
    Nilai kini liabilitas sewa adalah                                                                   Present value of lease liabilities
       sebagai berikut:                                                                                                   is as follows:
    Tidak lebih dari 1 tahun                             64,777                   10,965                              Less than 1 year
    1-5 tahun                                            10,216                   11,533                                       1-5 years
    Lebih dari 5 tahun                                    9,200                    4,192                             More than 5 years
    Jumlah                                               84,193                   26,690                                               Total


    Tidak ada pembatasan signifikan yang ditetapkan oleh               There is no significant restriction imposed by lease
    lessor dalam perjanjian sewa pembiayaan dengan Grup                arrangements between the lessor and the Group on the use
    terkait dengan penggunaan aset atau pencapaian kinerja             of the assets or maintenance of certain financial
    keuangan tertentu.                                                 performance.


17. PINJAMAN BANK JANGKA PENDEK                                     17. SHORT-TERM BANK LOANS

                                                     2024                    2023
    PT Bank OCBC NISP Tbk                                   9,189                   5,222                     PT Bank OCBC NISP Tbk
    Jumlah                                                  9,189                   5,222                                              Total




                                                                66
Page 277
                                                                                          The original consolidated financial statements included herein are in
                                                                                                                                     the Indonesian language.


                 PT AVIA AVIAN Tbk
               DAN ENTITAS ANAKNYA                                                                           PT AVIA AVIAN Tbk
        CATATAN ATAS LAPORAN KEUANGAN                                                                      AND ITS SUBSIDIARIES
                  KONSOLIDASIAN                                                                        NOTES TO THE CONSOLIDATED
              Tanggal 31 Desember 2024                                                                    FINANCIAL STATEMENTS
          serta Untuk Tahun yang Berakhir                                                                  As of December 31, 2024
                Pada Tanggal Tersebut                                                                    and For the Year Then Ended
           (Disajikan dalam jutaan Rupiah,                                                             (Expressed in millions of Rupiah,
                kecuali dinyatakan lain)                                                                   unless otherwise stated)

17. PINJAMAN BANK JANGKA PENDEK (lanjutan)                                           17. SHORT-TERM BANK LOANS (continued)

   Grup memiliki beberapa fasilitas pinjaman sebagai berikut:                            The Group has several loan facilities as follows:

                             Pemberi                                                                       Tanggal jatuh   Tingkat suku
       Nama entitas/        pinjaman/         Jenis fasilitas/          Mata uang/     Jumlah fasilitas/      tempo/          bunga/                  Jaminan/
        Entity name          Lender            Facility type             Currency        Total facility    Maturity date   Interest rate              Collateral


   PT Avia Avian       PT Bank Mandiri     Kredit Modal Kerja/              Rupiah            Rp940,000      27 Agustus/          4.25%      Piutang usaha, persediaan,
      Tbk                 (Persero) Tbk   Working Capital Loan                                              August 2025                             dan aset tetap/
                                                                                                                                           Trade receivables, inventories
                                                                                                                                                   and fixed assets

                                          Letter of Credit (“L/C”)      Dolar AS/      AS$/US$1,500,000
                                           Impor atau SKBDN/            US Dollar
                                          Import L/C or SKBDN

                                              Treasury Line             Dolar AS/     AS$/US$10,000,000
                                                                        US Dollar

                                             Bank Garansi/                  Rupiah               Rp2,000
                                            Bank Guarantee

   PT TKTW             PT Bank Mandiri     Kredit Modal Kerja/              Rupiah            Rp550,000      27 Agustus/          4.25%      Piutang usaha, persediaan,
                          (Persero) Tbk   Working Capital Loan                                              August 2025                         dan tanah milik
                                                                                                                                                PT Sarana Depo
                                                                                                                                                Kencana/
                                                                                                                                           Trade receivables, inventories.
                                                                                                                                              and PT Sarana Depo
                                                                                                                                              Kencana’s land

   PT MPI              PT Bank OCBC         Fasilitas cerukan/              Rupiah              Rp10,000      10 Maret/           7.45%       Tanah dan bangunan/
                         NISP Tbk           Overdraft facility                                               March 2025                         Land and building


   Pada tanggal 31 Desember 2024 dan 2023, Grup memiliki                                 As of December 31, 2024 and 2023, the Group has
   fasilitas pinjaman dari PT Bank Mandiri (Persero) Tbk yang                            undrawn facilities from PT Bank Mandiri (Persero) Tbk.
   belum digunakan.

   Dana yang diperoleh dari pinjaman bank digunakan untuk                                The funds received from the bank loans are used for
   modal kerja. Bank garansi dari PT Bank Mandiri (Persero)                              working capital. Bank guarantee from PT Bank Mandiri
   Tbk digunakan untuk jaminan pembayaran pembelian gas                                  (Persero) Tbk is used for payment guarantee for gas
   dari PT Perusahaan Gas Negara (Persero).                                              procurement from PT Perusahaan Gas Negara (Persero).

   Berdasarkan perjanjian pinjaman, debitur diharuskan                                   Under the loan agreements, the borrowers are required to
   untuk memenuhi persyaratan tertentu, seperti persyaratan                              fulfill certain covenants, such as financial covenants and
   rasio keuangan dan persyaratan administrasi. Pada                                     administrative requirements. As of December 31, 2024, the
   tanggal 31 Desember 2024, Grup telah memenuhi                                         Group has complied with the financial covenants and
   persyaratan rasio keuangan dan persyaratan administrasi                               administrative requirements as well as had obtained the
   serta     telah    memperoleh     surat      persetujuan                              waiver letter from PT Bank OCBC NISP Tbk for the ratios
   pengesampingan dari PT Bank OCBC NISP Tbk atas rasio                                  that not complied the requirements.
   yang tidak memenuhi persyaratan.


18. LIABILITAS IMBALAN KERJA                                                         18. EMPLOYEE BENEFIT LIABILITIES

                                                                     2024                       2023
   Imbalan kerja jangka pendek                                         103,376                         92,174                  Short-term employee benefits
   Imbalan pascakerja                                                   63,336                         59,521                     Post-employment benefits
   Jumlah                                                              166,712                       151,695                                                       Total
   Dikurangi : Liabilitas jangka pendek                               (108,618 )                      (97,052 )                        Less : Current liabilities
   Liabilitas jangka panjang                                            58,094                         54,643                          Non-current liabilities


   a. Imbalan kerja jangka pendek                                                        a. Short-term employee benefits

       Imbalan kerja jangka pendek terdiri atas akrual atas                                   Short-term employee benefits comprise accruals for
       gaji, tunjangan hari raya, dan bonus yang akan                                         salary, religious allowance and bonus which will be paid
       dibayarkan pada tahun 2024 dan 2025.                                                   in 2024 and 2025.




                                                                                 67
Page 278
                                                                            The original consolidated financial statements included herein are in
                                                                                                                       the Indonesian language.


                 PT AVIA AVIAN Tbk
               DAN ENTITAS ANAKNYA                                                          PT AVIA AVIAN Tbk
        CATATAN ATAS LAPORAN KEUANGAN                                                     AND ITS SUBSIDIARIES
                  KONSOLIDASIAN                                                       NOTES TO THE CONSOLIDATED
              Tanggal 31 Desember 2024                                                   FINANCIAL STATEMENTS
          serta Untuk Tahun yang Berakhir                                                 As of December 31, 2024
                Pada Tanggal Tersebut                                                   and For the Year Then Ended
           (Disajikan dalam jutaan Rupiah,                                            (Expressed in millions of Rupiah,
                kecuali dinyatakan lain)                                                  unless otherwise stated)

18. LIABILITAS IMBALAN KERJA (lanjutan)                                 18. EMPLOYEE BENEFIT LIABILITIES (continued)

    b. Liabilitas imbalan pascakerja                                       b. Post-employment benefits liability

       Grup mengakui liabilitas imbalan kerja karyawan yang                    The Group recognised an unfunded employee benefits
       tidak didanai berdasarkan peraturan yang berlaku.                       liability in accordance with the applicable regulation. The
       Liabilitas imbalan pascakerja dihitung menggunakan                      post-employment benefits liability is calculated using the
       metode Projected Credit Unit.                                           Projected Credit Unit method.

       Liabilitas imbalan pascakerja dihitung oleh aktuaris                    The post-employment benefits liability is calculated by
       independen, Kantor Konsultan Aktuaria Riana dan                         the independent actuary, Kantor Konsultan Aktuaria
       Rekan, dalam laporannya tanggal 24 Januari 2025 dan                     Riana dan Rekan, in its reports dated January 24, 2025
       31 Januari 2025 untuk 31 Desember 2024 dan                              and January 31, 2025 for December 31, 2024 and
       25 Januari 2024 dan 29 Januari 2024 untuk                               January 25, 2024 and January 29, 2024 for
       31 Desember 2023.                                                       December 31, 2023.

       Jumlah yang diakui pada laba rugi konsolidasian                         The amount recognised in consolidated profit or loss is
       adalah sebagai berikut:                                                 as follows:

                                                        2024                     2023
       Biaya jasa kini                                        7,776                     7,627                            Current service cost
       Biaya bunga                                            3,662                     3,206                                   Interest cost
       Biaya jasa lalu                                       (2,183 )                     110                              Past service cost
       Jumlah beban imbalan kerja                              9,255                  10,943            Total employee benefits expense


       Mutasi nilai kini liabilitas imbalan pascakerja adalah                  Movements in the present value of post-employment
       sebagai berikut:                                                        benefits liability are as follows:

                                                        2024                     2023
       Saldo awal                                            59,521                   47,588                            Beginning balance
       Beban imbalan kerja                                    9,255                   10,943                     Employee benefits expense
       Pembayaran manfaat                                    (5,484 )                 (3,340 )                                Benefits paid
       Kerugian aktuaria neto                                                                                             Net actuarial loss
          dibebankan ke penghasilan                                                                                    charged to other
          komprehensif lain                                      44                     4,330                     comprehensive income
       Saldo akhir                                           63,336                   59,521                                   Ending balance
       Dikurangi : bagian jangka
          pendek                                             (5,242 )                 (4,878 )                          Less : current portion
       Bagian jangka panjang                                 58,094                   54,643                            Non-current portion


       Asumsi-asumsi dasar yang digunakan untuk                                The principal assumptions used in determining the post-
       menentukan liabilitas imbalan pascakerja adalah                         employment benefits liability are as follows:
       sebagai berikut:

       Usia pensiun                    :          Sesuai tingkatan pada tahun 2024 dan 2023             :                        Retirement age
                                                       Based on level in 2024 and 2023
       Tingkat kenaikan gaji           :              1% - 7% pada tahun 2024 dan 2023                  :       Annual rate of increase in salary
           tahunan                                        1% - 7% % in 2024 and 2023
       Tingkat diskonto                :   7,00% - 7,25% pada tahun 2024, 6,75% - 7,00% pada 2023       :                          Discount rate
                                              7.00% - 7.25% in 2024, 6.75% - 7.00% in 2023
       Tingkat kematian                :                         TMI-IV-2019                            :                          Mortality rate
       Tingkat kecacatan               :        5% dari tingkat kematian/5% of mortality rate           :                          Disability rate




                                                                   68
Page 279
                                                                            The original consolidated financial statements included herein are in
                                                                                                                       the Indonesian language.


                 PT AVIA AVIAN Tbk
               DAN ENTITAS ANAKNYA                                                          PT AVIA AVIAN Tbk
        CATATAN ATAS LAPORAN KEUANGAN                                                     AND ITS SUBSIDIARIES
                  KONSOLIDASIAN                                                       NOTES TO THE CONSOLIDATED
              Tanggal 31 Desember 2024                                                   FINANCIAL STATEMENTS
          serta Untuk Tahun yang Berakhir                                                 As of December 31, 2024
                Pada Tanggal Tersebut                                                   and For the Year Then Ended
           (Disajikan dalam jutaan Rupiah,                                            (Expressed in millions of Rupiah,
                kecuali dinyatakan lain)                                                  unless otherwise stated)

18. LIABILITAS IMBALAN KERJA (lanjutan)                               18. EMPLOYEE BENEFIT LIABILITIES (continued)

    b. Liabilitas imbalan pascakerja (lanjutan)                            b. Post-employment benefits liability (continued)

       Grup terekspos dengan beberapa risiko melalui                           The Group is exposed to a number of risks through its
       program imbalan pasti. Risiko yang paling signifikan                    defined benefit pension plans. The most significant risks
       adalah sebagai berikut:                                                 are as follows:

       Perubahan tingkat diskonto                                              Changes in discount rate

       Penurunan tingkat       diskonto   akan    meningkatkan                 A decrease in the discount rate will increase plan
       liabilitas program.                                                     liabilities.

       Tingkat kenaikan gaji                                                   Salary growth rate

       Liabilitas imbalan pensiun Grup berhubungan dengan                      The Group’s pension obligations are linked to the salary
       tingkat kenaikan gaji, dan semakin tinggi tingkat                       growth rate, and a higher salary growth rate will lead to
       kenaikan gaji akan menyebabkan semakin besarnya                         higher liabilities.
       liabilitas.

       Analisis sensitivitas terhadap asumsi utama yang                        The sensitivity analysis to the key assumptions used in
       digunakan dalam menentukan liabilitas imbalan                           determining post-employment benefits liability is as
       pascakerja adalah sebagai berikut:                                      follows:

                                                 Tingkat diskonto/         (Penurunan)/kenaikan/
                                                  Discount rate             (Decrease)/increase
       31 Desember 2024                             1%/(1%)                (Rp5,087)/ Rp6,840                             December 31, 2024
       31 Desember 2023                             1%/(1%)                (Rp4,602)/ Rp6,675                             December 31, 2023
                                                  Tingkat gaji/           Kenaikan/(penurunan)/
                                                   Salary rate             Increase/(decrease)
       31 Desember 2024                             1%/(1%)                Rp7,331/ (Rp5,595)                             December 31, 2024
       31 Desember 2023                             1%/(1%)                Rp7,072/ (Rp5,027)                             December 31, 2023

       Durasi rata-rata tertimbang dari liabilitas imbalan kerja               The weighted average duration of the benefit obligation
       di akhir periode pelaporan berkisar antara 14,91 tahun                  at the end of the reporting period is within a range of
       sampai 18,67 tahun pada tahun 2024 dan 13,97 tahun                      14.91 years to 18.67 years in 2024 and 13.97 years to
       sampai 18,53 tahun pada tahun 2023.                                     18.53 years in 2023.

       Jadwal jatuh tempo dari liabilitas imbalan pascakerja                   The maturity profile of undiscounted post-employment
       tanpa diskonto adalah sebagai berikut:                                  benefit liabilities is as follows:

                                                        2024                     2023
       Kurang dari 1 tahun                                    5,242                   4,878                                  Within one year
       1 - 5 tahun                                           10,818                   9,186                                        1 - 5 years
       Lebih dari 5 tahun                                   586,252                 517,988                                 More than 5 years
       Jumlah                                               602,312                 532,052                                                Total


       Manajemen berkeyakinan bahwa saldo liabilitas                           Management believes that the balance of post-
       imbalan pascakerja tersebut cukup untuk memenuhi                        employment benefits liability is sufficient to cover the
       imbalan minimum sesuai dengan peraturan yang                            minimum benefits required under the prevailing
       berlaku.                                                                regulations.




                                                                     69
Page 280
                                                             The original consolidated financial statements included herein are in
                                                                                                        the Indonesian language.


               PT AVIA AVIAN Tbk
             DAN ENTITAS ANAKNYA                                             PT AVIA AVIAN Tbk
      CATATAN ATAS LAPORAN KEUANGAN                                        AND ITS SUBSIDIARIES
                KONSOLIDASIAN                                          NOTES TO THE CONSOLIDATED
            Tanggal 31 Desember 2024                                      FINANCIAL STATEMENTS
        serta Untuk Tahun yang Berakhir                                    As of December 31, 2024
              Pada Tanggal Tersebut                                      and For the Year Then Ended
         (Disajikan dalam jutaan Rupiah,                               (Expressed in millions of Rupiah,
              kecuali dinyatakan lain)                                     unless otherwise stated)

19. PERPAJAKAN                                            19. TAXATION

   a. Pajak dibayar dimuka                                   a. Prepaid taxes

                                           2024                   2023
      Perusahaan                                                                                                The Company
      Pajak Pertambahan Nilai (PPN)
         masukan                              12,152                   19,016                      Value Added Tax (VAT) in
      Pajak penghasilan pasal 21                 148                        -                           Income tax article 21
      Pajak penghasilan pasal 4(2)               873                        -                         Income tax article 4(2)
      Sub-jumlah                              13,173                   19,016                                          Sub-total
      Entitas anak                                                                                                Subsidiaries
      Pajak Pertambahan Nilai (PPN)
         masukan                                  5,164                    549                     Value Added Tax (VAT) in
      Pajak penghasilan pasal 21                    928                      -                          Income tax article 21
      Pajak penghasilan pasal 4(2)                  483                    504                        Income tax article 4(2)
      Sub-jumlah                                  6,575                  1,053                                         Sub-total
      Jumlah                                  19,748                   20,069                                               Total


   b. Utang pajak                                            b. Taxes payable

                                           2024                   2023
      Perusahaan                                                                                                The Company
      Pajak Penghasilan:                                                                                        Income Taxes:
        Pasal 29                              44,314                   43,157                                     Article 29
        Pasal 21                                   -                    1,844                                     Article 21
        Pasal 23                                 740                      400                                     Article 23
        Pasal 4(2)                               325                      140                                    Article 4(2)
      Sub-jumlah                              45,379                   45,541                                          Sub-total
      Entitas anak                                                                                                 Subsidiaries
      Pajak Penghasilan:                                                                                         Income Taxes:
        Pasal 25                               1,715                        82                                      Article 25
        Pasal 29                              13,749                         3                                      Article 29
        Pasal 4(2)                               714                     4,713                                    Article 4(2)
        Pasal 15                                   1                         -                                      Article 15
        Pasal 21                               8,889                     1,848                                      Article 21
        Pasal 23                               1,669                       224                                      Article 23
      Pajak Pertambahan Nilai (PPN)
        keluaran                                     7                     173                    Value Added Tax (VAT) out
      Sub-jumlah                              26,744                     7,043                                         Sub-total
      Jumlah                                  72,123                   52,584                                               Total


   c. Beban pajak penghasilan                                c. Income tax expense

                                           2024                   2023
      Perusahaan                                                                                                The Company
      Kini                                   301,662                 353,551                                          Current
      Tangguhan                               10,499                 (67,318 )                                       Deferred
      Sub-jumlah                             312,161                 286,233                                           Sub-total
      Entitas anak                                                                                                Subsidiaries
      Kini                                    95,489                   71,224                                          Current
      Tangguhan                               (2,755 )                 (8,410 )                                      Deferred
      Sub-jumlah                              92,734                   62,814                                          Sub-total
      Jumlah beban pajak penghasilan         404,895                 349,047                      Total income tax expense


                                                      70
Page 281
                                                                       The original consolidated financial statements included herein are in
                                                                                                                  the Indonesian language.


                PT AVIA AVIAN Tbk
              DAN ENTITAS ANAKNYA                                                      PT AVIA AVIAN Tbk
       CATATAN ATAS LAPORAN KEUANGAN                                                 AND ITS SUBSIDIARIES
                 KONSOLIDASIAN                                                   NOTES TO THE CONSOLIDATED
             Tanggal 31 Desember 2024                                               FINANCIAL STATEMENTS
         serta Untuk Tahun yang Berakhir                                             As of December 31, 2024
               Pada Tanggal Tersebut                                               and For the Year Then Ended
          (Disajikan dalam jutaan Rupiah,                                        (Expressed in millions of Rupiah,
               kecuali dinyatakan lain)                                              unless otherwise stated)

19. PERPAJAKAN (lanjutan)                                          19. TAXATION (continued)

    c. Beban pajak penghasilan (lanjutan)                             c. Income tax expense (continued)

       Rekonsiliasi antara laba sebelum beban pajak                       Reconciliation between consolidated profit before
       penghasilan konsolidasian menurut laporan laba rugi                income tax expense a shown in the consolidated
       dan penghasilan komprehensif lain konsolidasian                    statements of profit or loss and other comprehensive
       dengan taksiran laba kena pajak adalah sebagai                     income and the estimated taxable income is as follows:
       berikut:

                                                    2024                    2023
       Laba sebelum beban pajak                                                                              Consolidated profit before
          penghasilan konsolidasian                  2,068,594               1,992,143                          income tax expense
       Dikurangi laba sebelum pajak -                                                                            Less profit before tax -
          entitas anak                                (442,687 )               (393,808 )                               subsidiaries
       Disesuaikan dengan eliminasi                                                                        Adjustment for consolidation
          konsolidasian                                265,959                 341,014                                   elimination
       Laba sebelum beban pajak                                                                          Profit before tax attributable
          Perusahaan                                 1,891,866               1,939,349                             to the Company
       Penyesuaian fiskal:                                                                                       Fiscal adjustments:
       Penyusutan aset tetap                               1,716                   5,824                  Depreciation of fixed assets
       Penyisihan persediaan usang                                                                         Provision for obsolescence
          dan lambat bergerak                              1,177                   (982 )              and slow-moving inventories
       Aset hak-guna dan sewa                              1,220                 (1,092 )               Right-of-use assets and lease
       Imbalan kerja                                         962                    354                             Employee benefits
       Provisi retur penjualan dan                                                                       Provision for sales return and
          hak retur aset                                   221                     864                        right of return assets
       Akrual                                          (68,417 )               112,891                                         Accruals
       Beban yang tidak dapat dikurangkan                 (858 )                  (399 )                     Non-deductible expenses
       Pendapatan yang dikenakan
          pajak penghasilan final                     (256,697 )               (234,760 )                    Income subject to final tax
       Pendapatan yang bukan
          merupakan objek pajak                       (200,000 )               (215,000 )                      Income not subject to tax
       Taksiran laba kena pajak -                                                                           Estimated taxable income -
          Perusahaan                                 1,371,190               1,607,049                                the Company


       Laba kena pajak hasil rekonsiliasi di atas menjadi                 The taxable income resulted from the above
       dasar dalam pengisian SPT Tahunan Pajak                            reconciliation provides the basis for the Company’s
       Penghasilan (PPh) Badan Perusahaan.                                Annual Corporate Income Tax Return.

       Beban pajak penghasilan tahun berjalan dan                         Income tax expense current year and the computation
       perhitungan taksiran utang (klaim) pajak penghasilan               of the estimated income tax payable (claims for income
       adalah sebagai berikut:                                            tax refund) are as follows:

                                                    2024                    2023
       Taksiran penghasilan kena pajak                                                                        Estimated taxable income
          (dibulatkan)                                                                                                 (rounded off)
          Perusahaan                                 1,371,190               1,607,049                                    Company
          Entitas Anak                                 434,041                 323,745                                  Subsidiaries
       Beban pajak penghasilan -                                                                                   Income tax expense -
          tahun berjalan                                                                                                current year
          Perusahaan                                   301,662                 353,551                                     Company
          Entitas Anak                                  95,489                  71,224                                  Subsidiaries
       Beban pajak penghasilan menurut                                                          Income tax expense per consolidated
          laporan laba rugi dan penghasilan                                                        statements of profit or loss and
          komprehensif lain konsolidasian                                                            other comprehensive income
          - tahun berjalan                             397,151                 424,775                              - current year




                                                               71
Page 282
                                                                      The original consolidated financial statements included herein are in
                                                                                                                 the Indonesian language.


                PT AVIA AVIAN Tbk
              DAN ENTITAS ANAKNYA                                                     PT AVIA AVIAN Tbk
       CATATAN ATAS LAPORAN KEUANGAN                                                AND ITS SUBSIDIARIES
                 KONSOLIDASIAN                                                  NOTES TO THE CONSOLIDATED
             Tanggal 31 Desember 2024                                              FINANCIAL STATEMENTS
         serta Untuk Tahun yang Berakhir                                            As of December 31, 2024
               Pada Tanggal Tersebut                                              and For the Year Then Ended
          (Disajikan dalam jutaan Rupiah,                                       (Expressed in millions of Rupiah,
               kecuali dinyatakan lain)                                             unless otherwise stated)

19. PERPAJAKAN (lanjutan)                                         19. TAXATION (continued)

    c. Beban pajak penghasilan (lanjutan)                            c. Income tax expense (continued)

                                                  2024                     2023
       Pajak penghasilan dibayar di muka                                                                Prepayments of income taxes
          (Pasal 22, 23 dan 25)                                                                            (Articles 22, 23 and 25)
          Perusahaan                                 257,348                  310,394                                     Company
          Entitas Anak                                81,740                  100,653                                  Subsidiaries
       Pajak penghasilan dibayar di muka             339,088                  411,047                   Prepayments of income taxes
       Taksiran klaim                                                                                     Estimated claims for income
          pajak penghasilan -                                                                                          tax refund -
          Entitas Anak                                       -                 (29,432 )                              Subsidiaries
       Taksiran kalim pajak                                                                            Estimated claims for income
          penghasilan                                        -                 (29,432 )                              tax refund
       Jumlah utang pajak penghasilan                                                                         Total income tax payable
          Perusahaan                                  44,314                    43,157                                    Company
          Entitas Anak                                13,749                         3                                  Subsidiaries
       Jumlah utang pajak penghasilan                 58.063                    43,160                      Total income tax payable


       Taksiran klaim pajak penghasilan pada tanggal                     Estimated claim for income tax refund at the date of the
       laporan posisi keuangan konsolidasian untuk tahun                 consolidated statement of financial position consist of
       pajak sebagai berikut:                                            the claim for the year as follows:

                                                  2024                     2023
       Taksiran klaim pajak                                                                               Estimated claims for income
          penghasilan                                                                                                   tax refund
          Entitas Anak                                                                                                Subsidiaries
           2023                                       29,432                    29,432                                      2023
       Jumlah                                         29,432                    29,432                                               Total


       Rekonsiliasi antara hasil perhitungan laba sebelum                Reconciliation between the computation of consolidated
       beban pajak penghasilan konsolidasian dengan beban                profit before tax expense and income tax expense as
       pajak penghasilan dalam laporan laba rugi dan                     shown in the consolidated statements of profit or loss
       penghasilan komprehensif lain konsolidasian adalah                and other comprehensive income is as follows:
       sebagai berikut:

                                                  2024                     2023
       Laba sebelum beban pajak                                                                     Consolidated profit before income
          penghasilan konsolidasian                2,068,594                1,992,143                                 tax expense
       Pengaruh pajak atas:                                                                                        The tax effect on:
       Pajak penghasilan dihitung dengan                                                                   Income tax calculated at
          tarif pajak yang berlaku                   455,091                  438,271                          applicable tax rate
       Beda tetap dan pembulatan                      13,537                   13,614             Permanent difference and rounding
       Pendapatan yang dikenakan
          pajak penghasilan final                     (63,733 )                (56,873 )                    Income subject to final tax
       Penyesuaian pajak tangguhan tahun
          sebelumnya                                         -                 (45,965 )          Prior year deferred tax adjustments
       Jumlah beban pajak penghasilan                404,895                  349,047                      Total income tax expense




                                                            72
Page 283
                                                                                The original consolidated financial statements included herein are in
                                                                                                                           the Indonesian language.


                PT AVIA AVIAN Tbk
              DAN ENTITAS ANAKNYA                                                                  PT AVIA AVIAN Tbk
       CATATAN ATAS LAPORAN KEUANGAN                                                             AND ITS SUBSIDIARIES
                 KONSOLIDASIAN                                                               NOTES TO THE CONSOLIDATED
             Tanggal 31 Desember 2024                                                           FINANCIAL STATEMENTS
         serta Untuk Tahun yang Berakhir                                                         As of December 31, 2024
               Pada Tanggal Tersebut                                                           and For the Year Then Ended
          (Disajikan dalam jutaan Rupiah,                                                    (Expressed in millions of Rupiah,
               kecuali dinyatakan lain)                                                          unless otherwise stated)

19. PERPAJAKAN (lanjutan)                                                   19. TAXATION (continued)

    d. Aset pajak tangguhan                                                    d. Deferred tax assets

       Rincian aset pajak tangguhan adalah sebagai berikut:                        The details of deferred tax assets are as follows:

                                                                     2024

                                                                         Dikreditkan ke
                                                     Dikreditkan          penghasilan
                                                    (dibebankan)         komprehensif
                                                     ke laba rugi/        lain/Credited
                                  Saldo awal/          Credited              to other           Saldo akhir/
                                  Beginning          (charged) to       comprehensive             Ending
                                   balance          profit or loss           income               balance

       Aset tetap                       (42,116 )             (840 )                  -               (42,956 )                          Fixed assets
       Aset hak-guna                    (15,062 )           (1,948 )                  -               (17,010 )                   Right-of-use assets
       Liabilitas sewa                    8,713                607                    -                 9,320                         Lease liabilities
       Liabilitas imbalan kerja          13,097                828                   10                13,935              Employee benefits liability
       Beban akrual                      74,077             (7,735 )                  -                66,342                      Accrued expenses
       Penyisihan persediaan                                                                                                             Provision for
          usang dan lambat                                                                                                     obsolescence and
          bergerak                        2,033              1,158                    -                 3,191            slow-moving inventories
       Provisi retur penjualan            7,947                505                    -                 8,452               Provision for sales return
       Hak retur aset                    (5,134 )             (284 )                  -                (5,418 )                Right to return assets
       Cadangan kerugian                                                                                                                Allowance for
          penurunan nilai                                                                                                      impairment losses
          piutang usaha                    323                  (35 )                 -                   288                of trade receivables

       Jumlah                           43,878              (7,744 )                 10                36,144                                    Total


                                                                     2024

                                                                           Dikreditkan
                                                                        (dibebankan) ke
                                                    (Dibebankan)          penghasilan
                                                    dikreditkan ke      komprehensif lain/
                                                       laba rugi/           Credited
                                  Saldo awal/          (Charged)        (charged) to other      Saldo akhir/
                                  Beginning           credited to       comprehensive             Ending
                                   balance          profit or loss           income               balance

       Disajikan sebagai:                                                                                                             Presented as:
       Aset pajak tangguhan             43,878               (7,744 )                10                36,144                    Deferred tax assets

       Jumlah                           43,878              (7,744 )                 10                36,144                                    Total

       Terdiri atas:                                                                                                                    Comprises:
       Perusahaan                                                                                                                     The Company
       Aset pajak tangguhan             28,962              (10,499)               (101 )              18,362                    Deferred tax assets

       Entitas anak                                                                                                                     Subsidiaries
       Aset pajak tangguhan             14,916               2,755                 111                 17,782                    Deferred tax assets

       Jumlah                           43,878              (7,744 )                 10                36,144                                    Total




                                                                        73
Page 284
                                                                                               The original consolidated financial statements included herein are in
                                                                                                                                          the Indonesian language.


                 PT AVIA AVIAN Tbk
               DAN ENTITAS ANAKNYA                                                                                PT AVIA AVIAN Tbk
        CATATAN ATAS LAPORAN KEUANGAN                                                                           AND ITS SUBSIDIARIES
                  KONSOLIDASIAN                                                                             NOTES TO THE CONSOLIDATED
              Tanggal 31 Desember 2024                                                                         FINANCIAL STATEMENTS
          serta Untuk Tahun yang Berakhir                                                                       As of December 31, 2024
                Pada Tanggal Tersebut                                                                         and For the Year Then Ended
           (Disajikan dalam jutaan Rupiah,                                                                  (Expressed in millions of Rupiah,
                kecuali dinyatakan lain)                                                                        unless otherwise stated)

19. PERPAJAKAN (lanjutan)                                                                19. TAXATION (continued)

    d. Aset pajak tangguhan (lanjutan)                                                        d. Deferred tax assets (continued)

                                                                                  2023

                                                                                      Dikreditkan ke
                                                             Dikreditkan               penghasilan
                                                            (dibebankan)              komprehensif
                                                             ke laba rugi/             lain/Credited
                                 Saldo awal/                   Credited                   to other             Saldo akhir/
                                 Beginning                   (charged) to            comprehensive               Ending
                                  balance                   profit or loss                income                 balance

       Aset tetap                       (46,036 )                     3,920                             -              (42,116 )                               Fixed assets
       Aset hak-guna                    (22,870 )                     7,808                             -              (15,062 )                        Right-of-use assets
       Liabilitas sewa                   20,167                     (11,454 )                           -                8,713                              Lease liabilities
       Liabilitas imbalan                                                                                                                                Employee benefits
          kerja                             10,473                       1,671                        953              13,097                                     liability
       Beban akrual                              -                      74,077                          -              74,077                            Accrued expenses
       Penyisihan persediaan                                                                                                                    Provision for obsolescence
          usang dan lambat                                                                                                                             and slow-moving
          bergerak                           2,924                          (891 )                      -                   2,033                            inventories
       Provisi retur penjualan               7,036                           911                        -                   7,947                 Provision for sales return
       Hak retur aset                       (4,571 )                        (563 )                      -                  (5,134 )                  Right to return assets
       Cadangan kerugian                                                                                                                                      Allowance for
          penurunan nilai                                                                                                                            impairment losses
          piutang usaha                         74                          249                         -                    323                   of trade receivables

       Jumlah                           (32,803 )                       75,728                        953              43,878                                            Total


                                                                                  2023

                                                                                   Dikreditkan
                                                                                (dibebankan) ke
                                                       (Dibebankan)               penghasilan
                                                       dikreditkan ke          komprehensif lain/
                                                          laba rugi/                Credited
                              Saldo awal/                (Charged)             (charged) to other                                Saldo akhir/
                              Beginning                  credited to             comprehensive                                     Ending
                               balance                 profit or loss                income                 Transfer               balance

       Disajikan sebagai:                                                                                                                                      Presented as:
       Aset pajak tangguhan          5,547                       8,410                       959                 28,962                43,878             Deferred tax assets
       Liabilitas pajak
          tangguhan                (38,350 )                    67,318                         (6 )             (28,962 )                       -       Deferred tax liabilities

       Jumlah                      (32,803 )                    75,728                       953                       -               43,878                             Total

       Terdiri atas:                                                                                                                                             Comprises:
       Perusahaan                                                                                                                                              The Company
       Aset pajak tangguhan                 -                           -                       -                28,962                28,962             Deferred tax assets
       Liabilitas pajak
          tangguhan                (38,350 )                    67,318                         (6 )             (28,962 )                       -       Deferred tax liabilities

       Entitas anak                                                                                                                                              Subsidiaries
       Aset pajak tangguhan          5,547                       8,410                       959                       -               14,916             Deferred tax assets

       Jumlah                      (32,803 )                    75,728                       953                       -               43,878                             Total



    e. Administrasi                                                                           e. Administration

       Undang-undang perpajakan Indonesia mengatur                                                  The taxation laws in Indonesia require that each
       bahwa masing-masing perusahaan dalam Grup                                                    company in the Group submits tax returns on the basis
       menghitung, menetapkan dan membayar sendiri                                                  of self-assessment.
       besarnya jumlah pajak yang terutang.

       Berdasarkan perundang-undangan yang berlaku,                                                 Under prevailing regulations, the Directorate General of
       Direktorat Jenderal Pajak (“DJP”) dapat menetapkan                                           Taxes ("DGT") may assess or amend taxes within five
       atau mengubah kewajiban pajak dalam jangka waktu                                             years from the time the tax becomes due.
       lima tahun sejak saat terutangnya pajak.




                                                                                     74
Page 285
                                                                                   The original consolidated financial statements included herein are in
                                                                                                                              the Indonesian language.


                  PT AVIA AVIAN Tbk
                DAN ENTITAS ANAKNYA                                                                PT AVIA AVIAN Tbk
         CATATAN ATAS LAPORAN KEUANGAN                                                           AND ITS SUBSIDIARIES
                   KONSOLIDASIAN                                                             NOTES TO THE CONSOLIDATED
               Tanggal 31 Desember 2024                                                         FINANCIAL STATEMENTS
           serta Untuk Tahun yang Berakhir                                                       As of December 31, 2024
                 Pada Tanggal Tersebut                                                         and For the Year Then Ended
            (Disajikan dalam jutaan Rupiah,                                                  (Expressed in millions of Rupiah,
                 kecuali dinyatakan lain)                                                        unless otherwise stated)

20. MODAL SAHAM                                                                20. SHARE CAPITAL

   Susunan     pemegang      saham     Perusahaan   dan                            The Company’s shareholders and their respective
   kepemilikannya pada tanggal-tanggal 31 Desember 2024                            ownership as of December 31, 2024 and 2023 are as
   dan 2023 adalah sebagai berikut:                                                follows:

                                                        Jumlah saham
                                                       ditempatkan dan
                                                        disetor penuh/       Persentase
                                                          Number of         kepemilikan/
                                                        shares issued        Percentage               Jumlah/
           Pemegang saham                                and fully paid    of ownership                Total                       Shareholders
   31 Desember 2024                                                                                                            December 31, 2024
   PT Tancorp Surya Sentosa                              22,674,971,000            36.60%                 226,750        PT Tancorp Surya Sentosa
   PT Wahana Lancar Rejeki                               20,129,652,900            32.49%                 201,297         PT Wahana Lancar Rejeki
   Archipelago Investment                                                                                                   Archipelago Investment
      Private Limited                                      3,902,748,900            6.30%                   39,027              Private Limited
   Rudi Tanoko                                             1,041,265,000            1.68%                   10,413                    Rudi Tanoko
   Rony Tanoko                                               497,829,300            0.80%                    4,978                    Rony Tanoko
   Direksi                                                                                                                       Board of Directors
   Robert Christian Tanoko                                 1,425,406,300            2.30%                   14,254         Robert Christian Tanoko
   Ruslan Tanoko *)                                           37,724,500            0.06%                      378                Ruslan Tanoko *)
   Wijono Tanoko                                               2,504,200            0.00%                       25                  Wijono Tanoko
   Kurnia Hadi Sinanto                                           651,600            0.00%                        7             Kurnia Hadi Sinanto
   Angelica Tanisia Jozar                                        222,400            0.00%                        2           Angelica Tanisia Jozar

   Masyarakat (masing-masing                                                                                                         Public (each below
     kepemilikan di bawah 5%)                            11,077,130,300            17.89%                 110,771                    5% ownership)
   Jumlah saham beredar                                  60,790,106,400            98.12%                 607,902           Total outstanding shares
   Saham treasuri                                         1,163,449,200             1.88%                  11,634                   Treasury shares
   Jumlah                                                61,953,555,600             100%                  619,536                                          Total
   *) Tidak Langsung melalui PT Sensasi Istana Warna                                                                   *) Indirectly through PT Sensasi Istana Warna


                                                        Jumlah saham
                                                       ditempatkan dan
                                                        disetor penuh/       Persentase
                                                          Number of         kepemilikan/
                                                        shares issued        Percentage               Jumlah/
           Pemegang saham                                and fully paid    of ownership                Total                       Shareholders
   31 Desember 2023                                                                                                            December 31, 2023
   PT Tancorp Surya Sentosa                              22,674,971,000            36.60%                 226,750        PT Tancorp Surya Sentosa
   PT Wahana Lancar Rejeki                               20,129,652,900            32.49%                 201,297         PT Wahana Lancar Rejeki
   Archipelago Investment                                                                                                   Archipelago Investment
      private Limited                                      3,902,748,900            6.30%                   39,027              Private Limited
   Rony Tanoko                                             1,041,265,000            1.68%                   10,413                    Rony Tanoko
   Rudi Tanoko                                             1,041,265,000            1.68%                   10,413                    Rudi Tanoko
   Direksi                                                                                                                       Board of Directors
   Robert Christian Tanoko                                 1,425,406,300            2.30%                   14,254         Robert Christian Tanoko
   Ruslan Tanoko *)                                           20,959,300            0.03%                      210                Ruslan Tanoko *)
   Wijono Tanoko                                               2,504,200            0.00%                       25                  Wijono Tanoko
   Kurnia Hadi Sinanto                                           556,600            0.00%                        5             Kurnia Hadi Sinanto
   Angelica Tanisia Jozar                                        169,300            0.00%                        2           Angelica Tanisia Jozar

   Masyarakat (masing-masing                                                                                                         Public (each below
     kepemilikan di bawah 5%)                            11,679,438,300            18.86%                 116,794                    5% ownership)
   Jumlah saham beredar                                  61,918,936,800            99.94%                 619,190           Total outstanding shares
   Saham treasuri                                            34,618,800             0.06%                     346                   Treasury shares
   Jumlah                                                61,953,555,600             100%                  619,536                                          Total

   *) Tidak Langsung melalui PT Sensasi Istana Warna                                                                   *) Indirectly through PT Sensasi Istana Warna


                                                                            75
Page 286
                                                                       The original consolidated financial statements included herein are in
                                                                                                                  the Indonesian language.


                PT AVIA AVIAN Tbk
              DAN ENTITAS ANAKNYA                                                      PT AVIA AVIAN Tbk
       CATATAN ATAS LAPORAN KEUANGAN                                                 AND ITS SUBSIDIARIES
                 KONSOLIDASIAN                                                   NOTES TO THE CONSOLIDATED
             Tanggal 31 Desember 2024                                               FINANCIAL STATEMENTS
         serta Untuk Tahun yang Berakhir                                             As of December 31, 2024
               Pada Tanggal Tersebut                                               and For the Year Then Ended
          (Disajikan dalam jutaan Rupiah,                                        (Expressed in millions of Rupiah,
               kecuali dinyatakan lain)                                              unless otherwise stated)

20. MODAL SAHAM (lanjutan)                                         20. SHARE CAPITAL (continued)

   Pada tahun 2024 dan 2023, Perusahaan telah melakukan                In 2024 and 2023, the Company repurchased
   pembelian kembali masing-masing 1.128.830.400 dan                   1,128,830,400 and 34,618,800, respectively, of its own
   34.618.800 lembar saham biasa Perusahaan melalui                    shares amounting to through purchases on the IDX (Note
   pembelian pada BEI (Catatan 1b). Pembelian kembali                  1b). This repurchase transaction is intended to stabilise the
   saham Perusahaan ini ditujukan untuk menjaga stabilitas             Company’s share price. The total amount paid to acquire
   harga saham Perusahaan. Jumlah pembayaran untuk                     the shares was Rp 558,183 (Rp 358 - Rp 600/share - full
   mengakuisisi saham tersebut masing-masing adalah                    amount) and Rp 16,369 (Rp 426 - Rp 500/share - full
   Rp 558.183 (Rp 358 - Rp 600/lembar saham - nilai penuh)             amount) in 2024 and 2023, respectively. The shares are
   dan Rp 16.369 (Rp 426 - Rp 500/lembar saham - nilai                 held as “treasury shares” in the consolidated statement of
   penuh) pada tahun 2024 dan 2023. Saham tersebut                     financial position as of December 31, 2024 and 2023.
   dicatat pada “saham treasuri” dalam laporan posisi
   keuangan konsolidasian tanggal 31 Desember 2024 dan
   2023.

   Pengelolaan modal                                                  Capital management

   Tujuan Grup dalam pengelolaan permodalan adalah untuk              The Group’s objectives when managing capital are to
   mempertahankan kelangsungan usaha Grup serta                       safeguard the Group’s ability to continue as a going
   memaksimalkan manfaat bagi pemegang saham dan                      concern while seeking to maximise benefits to shareholders
   pemangku kepentingan lainnya.                                      and other stakeholders.

   Grup mengelola struktur permodalan dan melakukan                   The Group manages its capital structure and makes
   penyesuaian, berdasarkan perubahan kondisi ekonomi.                adjustments to it, in light of changes in economic conditions.
   Untuk    memelihara    dan    menyesuaikan   struktur              To maintain or adjust the capital structure, the Group may
   permodalan, Grup dapat menyesuaikan pembayaran                     adjust the dividend payment to shareholders, issue new
   dividen kepada pemegang saham, menerbitkan saham                   shares or raise debt financing. No changes were made in
   baru atau mengusahakan pendanaan melalui pinjaman.                 the objectives, policies or processes for the years ended
   Tidak    ada  perubahan     atas  tujuan,  kebijakan               December 31, 2024 and 2023.
   maupun proses untuk tahun yang berakhir pada tanggal
   31 Desember 2024 dan 2023.

   Kebijakan Grup adalah mempertahankan struktur                      The Group’s policy is to maintain a healthy capital structure
   permodalan yang sehat untuk mengamankan akses                      in order to secure access to finance at a reasonable cost.
   terhadap pendanaan pada biaya yang wajar.


21. TAMBAHAN MODAL DISETOR                                         21. ADDITIONAL PAID-IN CAPITAL

                                                    2024                    2023
   Selisih nilai nominal dengan                                                                         Difference between par value
     penerimaan setoran modal                        7,874,557               7,874,557               and proceeds of share capital
   Biaya emisi saham                                  (119,356 )              (119,356 )                       Shares issuance costs
   Dampak transaksi antara entitas                                                                Transactions between entities under
     sepengendali                                       38,017                   38,017                           common control
   Jumlah                                            7,793,218               7,793,218                                                Total


   Perusahaan melakukan penawaran umum perdana                        The Company made an initial public offering of
   sebanyak 6.200.000.000 lembar saham dengan nilai                   6,200,000,000 shares to the public with a par value of
   nominal Rp 10 (angka penuh) per lembar saham dan                   Rp 10 (full amount) per share at an offering price of Rp 930
   harga penawaran sebesar Rp 930 (angka penuh) per                   (full amount) per share.
   lembar saham.

   Biaya emisi saham merupakan biaya transaksi yang timbul            Share issuance costs are transaction costs arising from the
   dari aktivitas Penawaran Umum Saham Perdana, antara                Initial Public Offering, which includes underwriting and
   lain    mencakup     biaya  jasa    penjaminan      dan            management fees, supporting professional service fees,
   penyelenggaraan, biaya profesi penunjang pasar modal,              capital market supporting institution fees and other fees.
   biaya lembaga penunjang pasar modal dan biaya lain-lain.




                                                              76
Page 287
                                                                          The original consolidated financial statements included herein are in
                                                                                                                     the Indonesian language.


                PT AVIA AVIAN Tbk
              DAN ENTITAS ANAKNYA                                                         PT AVIA AVIAN Tbk
       CATATAN ATAS LAPORAN KEUANGAN                                                    AND ITS SUBSIDIARIES
                 KONSOLIDASIAN                                                      NOTES TO THE CONSOLIDATED
             Tanggal 31 Desember 2024                                                  FINANCIAL STATEMENTS
         serta Untuk Tahun yang Berakhir                                                As of December 31, 2024
               Pada Tanggal Tersebut                                                  and For the Year Then Ended
          (Disajikan dalam jutaan Rupiah,                                           (Expressed in millions of Rupiah,
               kecuali dinyatakan lain)                                                 unless otherwise stated)

22. SALDO    LABA               YANG          DITENTUKAN              22. APPROPRIATED RETAINED EARNINGS
    PENGGUNAANNYA

   Perusahaan    dipersyaratkan      oleh     Undang-undang              The Company is required by the Limited Liability Company
   Perseroan Terbatas No. 40 Tahun 2007 efektif tanggal                  Law No. 40, Year 2007 effective August 16, 2007 to
   16 Agustus 2007 untuk mengalokasikan sampai dengan                    allocate to and maintain a non-distributable reserve fund
   20% dari modal ditempatkan dan disetor ke dalam dana                  until the said reserve reaches at least 20% of the issued
   cadangan yang tidak boleh didistribusikan.                            and paid capital.

   Berdasarkan       Surat        Keputusan        Direksi               Based on the Board of Directors’ Decision Letter
   No. 036/AA/DIR/XI/2021 bertanggal 7 September 2021                    No. 036/AA/DIR/XI/2021 dated September 7, 2021
   tentang Pembentukan Cadangan Umum, Direksi                            concerning the Establishment of General Reserves, the
   Perusahaan telah menyetujui untuk menyisihkan sebagian                Company's Board of Directors has agreed to set aside a
   saldo laba Perusahaan untuk cadangan umum sebesar                     portion of the Company's retained earnings for general
   Rp 112.000 sebagai tindak lanjut atas keputusan                       reserves amounting to Rp 112,000 as a follow-up to the
   pemegang saham Perusahaan dalam Rapat Umum                            decision of the Company's shareholders in the General
   Pemegang Saham tertanggal 14 Juni 2021.                               Meeting of Shareholders dated June 14, 2021.

   Berdasarkan Rapat Umum Pemegang Saham Tahunan                         Based on the Annual General Shareholders’ Meeting held
   yang diselenggarakan pada tanggal 22 April 2022, para                 on April 22, 2022, the Company’s shareholders approved
   pemegang saham menyetujui tambahan pencadangan                        the addition of appropriation for general a reserve of
   umum sebesar Rp 12.000 dari laba konsolidasian tahun                  Rp 12,000 from 2021 consolidated profit.
   2021.


23. LABA PER SAHAM DASAR DAN DILUSIAN                                 23. BASIC AND DILUTED EARNINGS PER SHARE

   Rincian perhitungan laba per saham dasar dan dilusian                 Details of basic and diluted earnings per share computation
   adalah sebagai berikut:                                               are as follows:

                                                       2024                    2023
   Laba tahun berjalan yang dapat
     diatribusikan kepada pemilik                                                               Income for the year attributable to equity
     entitas induk                                      1,664,341               1,642,166            holders of the parent company
   Rata-rata tertimbang jumlah saham                                                                         Weighted average number
     yang beredar                                 61,289,388,327          61,953,271,062                       of outstanding shares
   Laba per saham dasar                                                                                      Basic and diluted earnings
     dan dilusian (nilai penuh)                               27.16                   26.51                   per share (full amount)


   Perusahaan tidak memiliki efek berpotensi dilusi saham                The Company does not have any potentially dilutive shares.
   sehingga laba per saham dasar sama dengan laba per                    Therefore, the diluted earnings per share is equal to the
   saham dilusian.                                                       basic earnings per share.


24. DIVIDEN                                                           24. DIVIDENDS

   Berdasarkan Keputusan Sirkuler Direksi tanggal                        Based on Circular Resolution of Directors on
   1 November 2024, para pemegang saham menyetujui                       November 1, 2024, the Company’s shareholders approved
   pembagian dividen interim tunai sebesar Rp 671.979                    the distribution of interim cash dividends amounting to
   (Rp 11/lembar saham - nilai penuh) yang telah dibayarkan              Rp 671,979 (Rp 11/share - full amount) paid on
   pada tanggal 21 November 2024.                                        November 21, 2024.

   Berdasarkan Berita Acara Rapat Umum Pemegang                          Based on Minutes of Annual General Meeting of
   Saham Tahunan No. 2 tanggal 4 April 2024 yang dibuat                  Shareholders No. 2 dated April 4, 2024 by Notary
   oleh Notaris Dr. Susanti, S.H., M.Kn., Notaris di Surabaya,           Dr. Susanti, S.H., M.Kn., Notary in Surabaya, the
   para pemegang saham menyetujui pembagian dividen                      Company’s shareholders approved the distribution of cash
   tunai dari laba bersih tahun 2023 sebesar Rp 1.357.652                dividends from 2023 profit amounting to Rp 1,357,652
   (Rp 22/lembar saham - nilai penuh) yang terdiri atas                  (Rp 22/share - full amount) which comprises of interim
   dividen interim sebesar Rp 681.489 (Rp 11/lembar saham                dividends amounting to Rp 681,489 (Rp 11/share - full
   - nilai penuh) yang telah dibayarkan     pada       tanggal           amount) paid on October 31, 2023, and final dividends of
   31 Oktober 2023, dan dividen final sebesar Rp 676.163                 Rp 676,163 (Rp 11/share - full amount) paid on April 30,
   (Rp11/lembar saham - nilai penuh) yang telah dibayarkan               2024.
   pada tanggal 30 April 2024.

                                                                  77
Page 288
                                                                          The original consolidated financial statements included herein are in
                                                                                                                     the Indonesian language.


                 PT AVIA AVIAN Tbk
               DAN ENTITAS ANAKNYA                                                        PT AVIA AVIAN Tbk
        CATATAN ATAS LAPORAN KEUANGAN                                                   AND ITS SUBSIDIARIES
                  KONSOLIDASIAN                                                     NOTES TO THE CONSOLIDATED
              Tanggal 31 Desember 2024                                                 FINANCIAL STATEMENTS
          serta Untuk Tahun yang Berakhir                                               As of December 31, 2024
                Pada Tanggal Tersebut                                                 and For the Year Then Ended
           (Disajikan dalam jutaan Rupiah,                                          (Expressed in millions of Rupiah,
                kecuali dinyatakan lain)                                                unless otherwise stated)

24. DIVIDEN (lanjutan)                                                24. DIVIDENDS (continued)

    Berdasarkan Akta Notaris No. 2 yang dibuat oleh Notaris              Based on Notarial Deed No. 2 by Notary Dr. Susanti, S.H.,
    Dr. Susanti, S.H., M.Kn., dalam Rapat Umum Pemegang                  M.Kn., in the Annual General Shareholders’ Meeting of the
    Saham Tahunan Perusahaan tanggal 13 April 2023, para                 Company dated April 13, 2023, the Company’s
    pemegang saham menyetujui pembagian dividen tunai                    shareholders approved the distribution of cash dividends
    dari laba bersih tahun 2022 sebesar Rp 1.301.025                     from 2022 profit amounting to Rp 1,301,025 (Rp 21/share -
    (Rp 21/lembar saham - nilai penuh) yang terdiri atas                 full amount), which comprises of interim dividends
    dividen interim sebesar Rp 619.536 (Rp 10/lembar saham               amounting to Rp 619,536 (Rp 10/share - full amount) paid
    - nilai penuh) yang telah dibayarkan   pada       tanggal            on December 6, 2022, and final dividends of Rp 681,489
    6 Desember 2022, dan dividen final sebesar Rp 681.489                (Rp 11/share - full amount) paid on May 9, 2023.
    (Rp 11/lembar saham - nilai penuh) yang telah dibayarkan
    pada tanggal 9 Mei 2023.


25. PENDAPATAN NETO                                                   25. NET REVENUES

    Pendapatan neto berdasarkan kategori pelanggan:                      Net revenues by customers category:

                                                        2024                   2023
    Pihak ketiga                                          7,411,273             6,963,729                                     Third parties
    Pihak berelasi (Catatan 7)                               60,083                53,153                          Related parties (Note 7)
    Jumlah                                                7,471,356             7,016,882                                                Total


    Pendapatan neto berdasarkan jaringan distribusi:                     Net revenues by distribution channel:

                                                        2024                   2023
    Distributor sendiri                                   6,695,381             6,186,802                                 Owned distributor
    Distributor pihak ketiga                                735,518               788,926                             Third party distributor
    Penjualan langsung                                       40,457                41,154                                       Direct sales
    Jumlah                                                7,471,356             7,016,882                                                Total


    Penjualan melalui distributor sendiri merupakan penjualan            Sales through owned distributor represent sales made
    yang dilakukan melalui PT TKTW (entitas anak) dan                    through PT TKTW (subsidiary) and PT TKBI (indirect
    PT TKBI (entitas anak tidak langsung) kepada pelanggan.              subsidiary) to the customers. Sales through third party
    Penjualan melalui distributor pihak ketiga merupakan                 distributor represent sales made through the Company’s
    penjualan yang dilakukan melalui distributor Perusahaan.             distributors.     Direct sales  represent  sales  non-
    Penjualan langsung merupakan penjualan kepada                        retails/projects.
    pelanggan non-ritel/proyek.

    Pada tanggal 31 Desember 2024 dan 2023, Grup tidak                   As of December 31, 2024 and 2023, the Group does not
    memiliki penjualan kepada pelanggan tertentu dengan                  have any sales to certain customers with the individual
    total penjualan kumulatif individual masing-masing                   cumulative amount each exceeding 10% of the total
    melebihi 10% dari total pendapatan konsolidasian.                    consolidated revenues.

    Seluruh pelanggan adalah pelanggan lokal.                            All customers are local customers.

    Pada tanggal 31 Desember 2024 dan 2023, liabilitas                   As of December 31, 2024 and 2023, contract liabilities
    kontrak yang berkaitan dengan kontrak penjualan masing-              related to revenue contracts amounted to Rp 146,738 and
    masing sebesar Rp 146.738 dan Rp 205.579 diakui                      Rp 205,579, respectively, were recognised as part of
    sebagai bagian dari beban akrual pemasaran dan                       accrued marketing and promotion expense. The prior year’s
    promosi. Liabilitas kontrak tahun sebelumnya telah                   contract liabilities have been realised in the current
    terealisasi pada periode pelaporan saat ini dan telah diakui         reporting period and have been recognised as revenue
    sebagai pendapatan sebesar Rp 205.579 (2023:                         amounted to Rp 205,579 (2023: Rp 127,292).
    Rp 127.292).




                                                                   78
Page 289
                                                                       The original consolidated financial statements included herein are in
                                                                                                                  the Indonesian language.


                PT AVIA AVIAN Tbk
              DAN ENTITAS ANAKNYA                                                      PT AVIA AVIAN Tbk
       CATATAN ATAS LAPORAN KEUANGAN                                                 AND ITS SUBSIDIARIES
                 KONSOLIDASIAN                                                   NOTES TO THE CONSOLIDATED
             Tanggal 31 Desember 2024                                               FINANCIAL STATEMENTS
         serta Untuk Tahun yang Berakhir                                             As of December 31, 2024
               Pada Tanggal Tersebut                                               and For the Year Then Ended
          (Disajikan dalam jutaan Rupiah,                                        (Expressed in millions of Rupiah,
               kecuali dinyatakan lain)                                              unless otherwise stated)

26. BEBAN POKOK PENJUALAN                                           26. COST OF GOODS SOLD

                                                     2024                   2023
   Pemakaian bahan baku                              1,925,433               1,948,508                           Raw materials usage
   Upah langsung                                        77,841                  74,591                                     Direct labour
   Beban pabrikasi:                                                                                                  Factory overhead:
     Upah tak langsung                                  96,034                  88,190                                Indirect labour
     Penyusutan aset tetap                                                                                     Depreciation of fixed
        (Catatan 12)                                    34,775                  32,099                          assets (Note 12)
     Perawatan dan pemeliharaan                         20,148                  15,563                    Repair and maintenance
     Listrik, air, dan gas                              18,459                  18,482                  Electricity, water, and gas
     Perlengkapan pabrik                                 5,422                   4,337                             Factory supplies
     Pemakaian bahan pembantu                            4,850                   6,094                   Supporting material used
     Amortisasi aset takberwujud                           923                     781              Amortization of intangible asset
     Lain-lain                                          13,866                   6,007                                        Others
   Jumlah beban produksi                             2,197,751               2,194,652                             Total production cost
   Barang dalam proses                                                                                                  Work in process
     Awal tahun                                          45,887                  43,115                          At beginning of year
     Akhir tahun                                        (41,994 )               (45,887 )                              At end of year
   Beban pokok produksi                              2,201,644               2,191,880                     Cost of goods manufactured

   Barang jadi                                                                                                           Finished goods
     Awal tahun                                         996,609                935,800                           At beginning of year
     Pembelian                                        1,367,214              1,170,476                                    Purchases
     Akhir tahun                                     (1,051,043 )             (996,609 )                               At end of year
   Beban pokok penjualan sebelum                                                                            Cost of goods sold before
     pemakaian barang promosi                        3,514,424               3,301,547             promotional goods consumption
   Pemakaian barang promosi                            616,182                 531,999                Promotional goods consumption
   Beban pokok penjualan                             4,130,606               3,833,546                              Cost of goods sold


   Rincian pemasok yang memiliki transaksi pembelian lebih             Detail of suppliers with purchase transactions that represent
   dari 10% dari total pendapatan usaha konsolidasian                  more than 10% of the total consolidated revenue is as
   adalah sebagai berikut:                                             follows:

                                                     2024                   2023
   PT Avia Avian Industri Pipa                       1,053,497                 875,847                      PT Avia Avian Industri Pipa



27. BEBAN OPERASI                                                   27. OPERATING EXPENSES

   Rincian beban penjualan adalah sebagai berikut:                     The details of selling expenses are as follows:

                                                     2024                   2023
   Gaji, upah dan kesejahteraan karyawan               534,868                 499,521        Salaries, wages and employee benefits
   Biaya angkut penjualan                              210,694                 191,683                                    Freight out
   Pemasaran dan promosi                               185,516                 199,373                      Marketing and promotion
   Penyusutan (Catatan 12 dan 16)                      165,089                 142,764                Depreciation (Notes 12 and 16)
   Komisi penjualan                                     69,815                  63,125                             Sales commission
   Perjalanan dinas                                     56,923                  52,397                               Business travel
   Bahan bakar                                          29,076                  29,483                                          Fuel
   Percetakan                                           26,673                  27,337                                       Printing
   Pemeliharaan                                         22,221                  18,506                                  Maintenance
   Lain-lain                                            17,542                  16,048                                        Others
   Jumlah                                            1,318,417               1,240,237                                                Total




                                                               79
Page 290
                                                                   The original consolidated financial statements included herein are in
                                                                                                              the Indonesian language.


                 PT AVIA AVIAN Tbk
               DAN ENTITAS ANAKNYA                                                 PT AVIA AVIAN Tbk
        CATATAN ATAS LAPORAN KEUANGAN                                            AND ITS SUBSIDIARIES
                  KONSOLIDASIAN                                              NOTES TO THE CONSOLIDATED
              Tanggal 31 Desember 2024                                          FINANCIAL STATEMENTS
          serta Untuk Tahun yang Berakhir                                        As of December 31, 2024
                Pada Tanggal Tersebut                                          and For the Year Then Ended
           (Disajikan dalam jutaan Rupiah,                                   (Expressed in millions of Rupiah,
                kecuali dinyatakan lain)                                         unless otherwise stated)

27. BEBAN OPERASI (lanjutan)                                   27. OPERATING EXPENSES (continued)

    Rincian beban umum dan administrasi adalah sebagai            The details of general and administrative expenses are as
    berikut:                                                      follows:

                                                2024                    2023
    Gaji, upah dan kesejahteraan karyawan          81,082                   72,625        Salaries, wages and employee benefits
    Penyusutan (Catatan 12 dan 16)                 43,833                   37,703                Depreciation (Notes 12 and 16)
    Perlengkapan kantor                            22,360                   22,596                                 Office supplies
    Asuransi                                       21,506                   17,387                                      Insurance
    Utilitas                                       13,867                   13,662                                         Utilities
    Perjalanan dinas                               12,875                   11,927                            Business travelling
    Perijinan dan legalitas                        10,282                    8,524                              Permits and legal
    Jasa tenaga ahli                                9,175                    9,908                              Professional fees
    Pelatihan                                       6,543                    4,994                                        Training
    Amortisasi aset takberwujud                     6,517                    5,447                Amortization of intangible asset
    Sumbangan dan jamuan                            4,500                    4,508                   Donation and entertainment
    Kebersihan dan keamanan                         4,290                    4,368                         Cleaning and security
    Lain-lain                                      16,413                   12,441                                         Others
    Jumlah                                        253,243                  226,090                                                Total



28. PENDAPATAN KEUANGAN                                        28. FINANCE INCOME

                                                2024                    2023
    Bunga dari investasi pada                                                                            Interest from investment in
      surat utang negara                          154,994                  149,646                            government bonds
    Bunga dari deposito                           117,367                  124,670                       Interest from time deposits
    Bunga dari rekening giro                       12,744                   11,943                    Interest from current account
    Jumlah                                        285,105                  286,259                                                Total



29. BEBAN KEUANGAN                                             29. FINANCE CHARGES

                                                2024                    2023
    Beban bunga atas liabilitas sewa                                                           Interest expense on lease liabilities
      (Catatan 16)                                     2,011                   3,724                                 (Note 16)
    Beban bunga pinjaman bank                            528                     353               Interest expense on bank loans
    Jumlah                                             2,539                   4,077                                              Total




                                                           80
Page 291
                                                                                  The original consolidated financial statements included herein are in
                                                                                                                             the Indonesian language.


                 PT AVIA AVIAN Tbk
               DAN ENTITAS ANAKNYA                                                                  PT AVIA AVIAN Tbk
        CATATAN ATAS LAPORAN KEUANGAN                                                             AND ITS SUBSIDIARIES
                  KONSOLIDASIAN                                                               NOTES TO THE CONSOLIDATED
              Tanggal 31 Desember 2024                                                           FINANCIAL STATEMENTS
          serta Untuk Tahun yang Berakhir                                                         As of December 31, 2024
                Pada Tanggal Tersebut                                                           and For the Year Then Ended
           (Disajikan dalam jutaan Rupiah,                                                    (Expressed in millions of Rupiah,
                kecuali dinyatakan lain)                                                          unless otherwise stated)

30. PENDAPATAN (BEBAN) LAIN-LAIN - NETO                                      30. OTHER INCOME (EXPENSES) - NET

   Rincian pendapatan (beban) lain-lain - neto adalah                            The details of other income (expenses) - net are as follows:
   sebagai berikut:

                                                         2024                              2023
   Penjualan barang afalan                                         6,389                          7,097                                      Sale of scrap
   Pendapatan sewa gedung kantor                                                                                              Office and factory buildings
     dan pabrik                                                    4,307                          4,172                                   rental income
   Keuntungan pelepasan aset tetap                                                                                       Gain on disposal of fixed assets
     (Catatan 12)                                                  1,337                          5,052                                       (Note 12)
   Kenaikan nilai properti                                                                                                        Increase in fair value of
     investasi (Catatan 11)                                         397                           4,127              investment properties (Note 11)
   Kerugian penjualan investasi                                                                                               Loss on sale of investment
     pada surat utang negara                                             -                   (30,857)                            in government bonds
   Beban operasional atas gedung yang                                                                                    Operational expenses of leased
     disewakan (Catatan 11)                                      (2,579 )                     (4,360)                                building (Note 11)
   Keuntungan (kerugian) selisih kurs - neto                     (4,283 )                      1,070                Gain (loss) on foreign exchange - net
   Lain-lain - neto                                               8,692                        5,753                                           Others - net
   Jumlah                                                        14,260                       (7,946)                                                       Total



31. ASET ATAU LIABILITAS MONETER BERSIH DALAM                                31. NET  MONETARY     ASSETS   AND   LIABILITIES
    MATA UANG ASING                                                              DENOMINATED IN FOREIGN CURRENCIES

   Aset dan liabilitas keuangan Grup dalam mata uang asing                       The Group’s financial assets and liabilities in foreign
   adalah sebagai berikut:                                                       currencies are as follows:

                                                                 2024                                             2023

                                               Dalam mata                                         Dalam mata
                                               uang asing/                                        uang asing/
                               Mata uang/       In original             Jumlah setara/             In original           Jumlah setara/
                               Currency        currencies                Equivalent to            currencies              Equivalent to


   Aset moneter                                                                                                                                   Monetary assets
                               Dolar AS/
   Kas dan setara kas          US Dollar                16,249                     263                    2,452                      38 Cash and cash equivalents


   Liabilitas moneter                                                                                                                           Monetary liabilities
                               Dolar AS/
   Utang usaha                 US Dollar            (4,933,321 )               (79,732 )             (4,874,620 )               (75,147 )           Trade payables
                                 CNY               (28,678,389 )               (63,499 )            (10,090,439 )               (21,896 )
                                 Euro                 (433,631 )                (7,307 )               (982,769 )               (16,845 )
                                 SGD                  (373,878 )                (4,456 )               (175,441 )                (2,055 )
                                 GBP                    (9,903 )                  (201 )                      -                       -

                                                                              (155,195 )                                       (115,943 )

   Liabilitas moneter - neto                                                  (154,932 )                                       (115,905 ) Monetary liabilities - net




                                                                         81
Page 292
                                                                        The original consolidated financial statements included herein are in
                                                                                                                   the Indonesian language.


                 PT AVIA AVIAN Tbk
               DAN ENTITAS ANAKNYA                                                      PT AVIA AVIAN Tbk
        CATATAN ATAS LAPORAN KEUANGAN                                                 AND ITS SUBSIDIARIES
                  KONSOLIDASIAN                                                   NOTES TO THE CONSOLIDATED
              Tanggal 31 Desember 2024                                               FINANCIAL STATEMENTS
          serta Untuk Tahun yang Berakhir                                             As of December 31, 2024
                Pada Tanggal Tersebut                                               and For the Year Then Ended
           (Disajikan dalam jutaan Rupiah,                                        (Expressed in millions of Rupiah,
                kecuali dinyatakan lain)                                              unless otherwise stated)

32. TUJUAN DAN KEBIJAKAN MANAJEMEN RISIKO                           32. FINANCIAL RISK MANAGEMENT OBJECTIVE AND
    KEUANGAN                                                            POLICIES

   Aktivitas Grup rentan terhadap berbagai risiko keuangan:             The Group’s activities are exposed to a variety of financial
   risiko pasar (termasuk risiko nilai mata uang asing, risiko          risks: market risk (including foreign exchange risk, price risk
   harga, dan risiko tingkat suku bunga), risiko kredit dan             and interest rate risk), credit risk and liquidity risk. The
   risiko likuiditas. Program manajemen risiko Grup secara              Group’s overall risk management programme focuses on
   keseluruhan dipusatkan pada pasar keuangan yang tidak                the unpredictability of financial markets and seeks to
   dapat diprediksi dan Grup berusaha untuk memperkecil                 minimise potential adverse effects on the Group’s financial
   efek yang berpotensi merugikan kinerja keuangan Grup.                performance. Financial risk management is carried out
   Fungsi manajemen risiko keuangan dijalankan dalam                    under the monitoring of the Directors.
   pengawasan Direksi.

   Faktor-faktor risiko keuangan                                        Financial risk factors

   a.   Risiko pasar                                                    a.   Market risk

        Risiko nilai tukar mata uang asing                                   Foreign exchange risk

        Mata uang fungsional Grup adalah Rupiah. Grup                        The Group’s functional currency is Rupiah. The Group
        menghadapi risiko nilai tukar mata uang asing karena                 faces foreign exchange risk as a portion of its
        sebagian pembelian dan biaya operasionalnya dalam                    purchases and operating expenses are denominated in
        mata uang asing. Penurunan/penguatan nilai tukar                     foreign currencies. The weakening/strengthening of
        mata uang asing terhadap Rupiah, mengakibatkan                       foreign currency exchange rate against Rupiah, will
        utang dan biaya operasional dalam Rupiah                             cause payable and operating expenses in Rupiah
        menurun/meningkat.                                                   decrease/increase.

        Analisis sensitivitas untuk risiko nilai mata uang asing             Sensitivity analysis for foreign currency risk

        Pada tanggal 31 Desember 2024, jika nilai tukar                      As of December 31, 2024, had the Rupiah exchange
        Rupiah terhadap Dolar AS menguat/melemah                             rate strengthened/weakened by 10% against US
        sebesar 10%, dengan semua variabel lain konstan,                     Dollar, with all other variables held constant, post-tax
        maka laba setelah pajak untuk tahun yang berakhir                    profit for the year then ended would have been
        pada tanggal tersebut akan meningkat/menurun                         Rp 6,199 (December 31, 2023: Rp 5,859) higher/lower.
        sebesar Rp 6.199 (31 Desember 2023: Rp 5.859).                       The impact on equity would have been the same as
        Dampak terhadap ekuitas akan sama dengan                             the impact on profit for the year.
        dampak pada laba tahun berjalan.

        Risiko harga                                                         Price risk

        Grup rentan terhadap risiko harga efek utang karena                  The Group is exposed to debt securities price risk
        investasi yang dimiliki Grup diklasifikasikan dalam                  because the investments held by the Group are
        laporan posisi keuangan konsolidasian sebagai                        classified on the consolidated statement of financial
        diukur pada nilai wajar melalui penghasilan                          position at fair value through other comprehensive
        komprehensif lain dan nilai wajar melalui laba rugi.                 income and fair value through profit or loss. The Group
        Grup tidak rentan terhadap risiko harga komoditas.                   is not exposed to commodity price risk.

        Untuk mengelola risiko harga yang timbul dari                        To manage price risk arising from investments in debt
        investasi pada efek utang, Grup melakukan analisis                   securities, the Group performs an analysis of the
        terkait besarnya bunga kupon yang ditawarkan                         number of coupon bonds offered and the required rate
        dengan tingkat imbal hasil umum yang diharapkan                      of return which is generally expected by the market.
        oleh pasar.




                                                                   82
Page 293
                                                                     The original consolidated financial statements included herein are in
                                                                                                                the Indonesian language.


                 PT AVIA AVIAN Tbk
               DAN ENTITAS ANAKNYA                                                   PT AVIA AVIAN Tbk
        CATATAN ATAS LAPORAN KEUANGAN                                              AND ITS SUBSIDIARIES
                  KONSOLIDASIAN                                                NOTES TO THE CONSOLIDATED
              Tanggal 31 Desember 2024                                            FINANCIAL STATEMENTS
          serta Untuk Tahun yang Berakhir                                          As of December 31, 2024
                Pada Tanggal Tersebut                                            and For the Year Then Ended
           (Disajikan dalam jutaan Rupiah,                                     (Expressed in millions of Rupiah,
                kecuali dinyatakan lain)                                           unless otherwise stated)

32. TUJUAN DAN KEBIJAKAN MANAJEMEN RISIKO                        32. FINANCIAL RISK MANAGEMENT OBJECTIVE AND
    KEUANGAN (lanjutan)                                              POLICIES (continued)

   Faktor-faktor risiko keuangan (lanjutan)                          Financial risk factors (continued)

   a.   Risiko pasar (lanjutan)                                      a.   Market risk (continued)

        Risiko harga (lanjutan)                                           Price risk (continued)

        Analisis sensitivitas untuk risiko harga                          Sensitivity analysis for price risk

        Pada tanggal 31 Desember 2024, apabila tingkat                    As of December 31, 2024, if market required rate of
        imbal hasil secara umum yang diharapkan oleh pasar                return increased/decreased for 5%, post-tax profit for
        bergerak naik/turun 5%, maka laba setelah pajak                   the year then ended would increased/decreased by
        untuk tahun yang berakhir pada tanggal tersebut                   Rp 148,942 (2023: Rp 150,847) as a result of
        akan      naik/turun     sebesar    Rp     148.942                gains/(losses) on investments in government bonds
        (2023:      Rp       150.847)    sebagai     akibat               and mutual funds classified as at FVOCI and FVTPL.
        keuntungan/(kerugian) atas investasi pada surat                   The impact on equity would have been the same as
        utang negara dan reksa dana yang diklasifikasikan                 the impact on the consolidated profit or loss and other
        sebagai FVOCI dan FVTPL. Dampak terhadap                          comprehensive income for the year.
        ekuitas akan sama dengan dampak pada laba rugi
        dan penghasilan komprehensif lain konsolidasian
        tahun berjalan.

        Risiko tingkat suku bunga                                         Interest rate risk

        Risiko suku bunga dari kas di bank, deposito                      The interest rate risk from cash in banks, time deposits
        berjangka, dan investasi jangka pendek tidak                      and short-term investments is not significant.
        signifikan. Investasi pada surat utang negara,                    Investment in government bonds, bank loans and
        pinjaman bank dan liabilitas sewa yang memiliki                   lease liabilities which bear fixed interest rates expose
        tingkat suku bunga tetap mengekspos Grup terhadap                 the Group to fair value interest rate risk.
        risiko nilai wajar suku bunga.

        Tidak ada analisis sensitivitas yang dilakukan karena             No sensitivity analysis is prepared as the Group does
        Grup tidak memperkirakan adanya dampak material                   not expect any material effect on the Group’s profit or
        terhadap laba atau rugi Grup yang timbul dari                     loss arising from the effects of reasonably possible
        dampak perubahan suku bunga yang wajar pada                       changes to interest rates on interest bearing financial
        instrumen keuangan berbunga pada akhir periode                    instruments at the end of the reporting period. The
        pelaporan. Laba atau rugi Grup tidak terpengaruh                  Group’s profit or loss are not affected by changes in
        oleh perubahan suku bunga karena instrumen                        interest rates as the interest-bearing instruments carry
        berbunga tersebut memiliki tingkat bunga tetap dan                fixed interest and are amortized cost.
        merupakan biaya perolehan diamortisasi.

        Grup memonitor secara ketat fluktuasi suku bunga                  The Group closely monitors the market interest rate
        pasar dan ekspektasi pasar sehingga dapat                         fluctuation and market expectation so it can take
        mengambil    langkah-langkah      yang     paling                 necessary actions benefited most to the Group in due
        menguntungkan Grup secara tepat waktu.                            time.




                                                                83
Page 294
                                                                       The original consolidated financial statements included herein are in
                                                                                                                  the Indonesian language.


                 PT AVIA AVIAN Tbk
               DAN ENTITAS ANAKNYA                                                     PT AVIA AVIAN Tbk
        CATATAN ATAS LAPORAN KEUANGAN                                                AND ITS SUBSIDIARIES
                  KONSOLIDASIAN                                                  NOTES TO THE CONSOLIDATED
              Tanggal 31 Desember 2024                                              FINANCIAL STATEMENTS
          serta Untuk Tahun yang Berakhir                                            As of December 31, 2024
                Pada Tanggal Tersebut                                              and For the Year Then Ended
           (Disajikan dalam jutaan Rupiah,                                       (Expressed in millions of Rupiah,
                kecuali dinyatakan lain)                                             unless otherwise stated)

32. TUJUAN DAN KEBIJAKAN MANAJEMEN RISIKO                          32. FINANCIAL RISK MANAGEMENT OBJECTIVE AND
    KEUANGAN (lanjutan)                                                POLICIES (continued)

   Faktor-faktor risiko keuangan (lanjutan)                            Financial risk factors (continued)

   b.   Risiko kredit                                                  b.   Credit risk

        Grup terekspos risiko kredit dari kas di bank, deposito             The Group is exposed to credit risk from cash in bank,
        berjangka, kas di bank dan deposito yang dibatasi                   time deposits, restricted cash in bank and time
        penggunaannya, investasi jangka pendek, investasi                   deposits, short-term investments, investment in
        pada surat utang negara, investasi reksa dana,                      government bond, investment in mutual funds, trade
        piutang usaha, dan piutang lain-lain dari pihak ketiga.             receivables and other receivables from third parties.

        Semua kas di bank, deposito berjangka, kas dan                      All the cash in bank, time deposits, restricted cash in
        deposito yang dibatasi penggunaannya ditempatkan                    banks and short-term investments are placed in foreign
        di bank asing dan lokal yang memiliki reputasi dan                  and local banks with good reputation and rating.
        peringkat yang baik.

        Dalam pemilihan pelanggan, Grup menerapkan                          In selecting its customers, the Group applies prudent
        kebijakan persetujuan atas kontrak penjualan                        acceptance policies of new sales contracts and
        berdasarkan prinsip kehati-hatian serta melakukan                   perform ongoing monitoring as well as managing the
        pengelolaan atas piutangnya. Sebagai bagian dari                    collection of its receivables. As part of the approval
        proses persetujuan tersebut, reputasi dan catatan                   process, the customer’s reputation and track record
        historis pelanggan menjadi bahan pertimbangan.                      are taken into consideration.

        Berdasarkan penilaian manajemen atas kerugian                       Based on management’s assessment of the expected
        kredit ekspektasian berdasarkan PSAK 109,                           credit losses under PSAK 109, the Group’s
        manajemen Grup berkeyakinan bahwa cadangan                          management believes that the allowance for
        kerugian penurunan nilai piutang usaha dan piutang                  impairment losses of trade and other receivables is
        lain-lain telah memadai untuk menutup kemungkinan                   sufficient to cover possible losses from uncollectible
        kerugian atas tidak tertagihnya piutang usaha. Lihat                receivables. Refer to Note 6 for detailed receivables
        Catatan 6 untuk rincian umur piutang dan cadangan                   aging and allowance for impairment losses of trade
        kerugian penurunan nilai piutang usaha.                             receivables.

        Piutang lain-lain dari pihak berelasi merupakan                     Other receivables from related parties represents the
        piutang Grup dari pihak berelasinya atas klaim                      Group’s receivables from its related parties for
        program loyalitas pelanggan dan pengembalian                        customer loyalty program claim and reimbursement of
        aktivitas   pemasaran.    Berdasarkan      penilaian                marketing activities. Based on management’s
        manajemen atas kerugian kredit ekspektasian                         assessment of the expected credit losses under PSAK
        berdasarkan     PSAK    109,   manajemen        Grup                109, the Group’s management believes that the
        berkeyakinan bahwa kerugian kredit ekspektasian                     expected credit losses is close to nil, as such, no
        untuk piutang lain-lain mendekati nihil, sehingga                   allowance for impairment of other receivables is
        cadangan penurunan nilai atas piutang lain-lain tidak               necessary.
        diperlukan.




                                                                  84
Page 295
                                                                                                            The original consolidated financial statements included herein are in
                                                                                                                                                       the Indonesian language.


                 PT AVIA AVIAN Tbk
               DAN ENTITAS ANAKNYA                                                                                             PT AVIA AVIAN Tbk
        CATATAN ATAS LAPORAN KEUANGAN                                                                                        AND ITS SUBSIDIARIES
                  KONSOLIDASIAN                                                                                          NOTES TO THE CONSOLIDATED
              Tanggal 31 Desember 2024                                                                                      FINANCIAL STATEMENTS
          serta Untuk Tahun yang Berakhir                                                                                    As of December 31, 2024
                Pada Tanggal Tersebut                                                                                      and For the Year Then Ended
           (Disajikan dalam jutaan Rupiah,                                                                               (Expressed in millions of Rupiah,
                kecuali dinyatakan lain)                                                                                     unless otherwise stated)

32. TUJUAN DAN KEBIJAKAN MANAJEMEN RISIKO                                                         32. FINANCIAL RISK MANAGEMENT OBJECTIVE AND
    KEUANGAN (lanjutan)                                                                               POLICIES (continued)

   Faktor-faktor risiko keuangan (lanjutan)                                                               Financial risk factors (continued)

   b.   Risiko kredit (lanjutan)                                                                          b.      Credit risk (continued)

        Tabel di bawah merinci kualitas kredit aset keuangan                                                      The table below details the credit quality of the Group’s
        Grup serta eksposur maksimum risiko kredit menurut                                                        financial assets as well as maximum exposure to credit
        peringkat risiko kredit:                                                                                  risk by credit risk rating grades:
                                                                                                     2024
                                                 Peringkat          Peringkat                                          Jumlah
                                                  kredit              kredit                                           tercatat                      Jumlah
                                                 external/          internal/                                           bruto/     Cadangan          tercatat
                                                 External            Internal     ECL 12 bulan atau sepanjang           Gross      kerugian/          neto/
                                                  credit              credit                 umur/                     carrying       Loss         Net carrying
                                                  rating              rating       12-month or lifetime ECL            amount      allowance         amount

                                                             Lancar/
        Kas dan setara kas (Catatan 5)             BBB       Performing         EC L 12 bulan/12-month ECL             2,329,491               -      2,329,491   Cash and cash equivalents (Note 5)
                                                                                ECL sepanjang umur (pendekatan
                                                                                sederhana)/ Lifetime ECL (simplified
                                                                                approach)
                                                             Lancar/
        Kas di bank dan deposito yang dibatasi     BBB       Performing         ECL 12 bulan/12-month ECL                 3,000                -          3,000              Restricted cash in bank
          penggunaanya                                                          ECL sepanjang umur (pendekatan)/                                                              and time deposits
                                                                                Lifetime ECL (simplified approach)
        Piutang usaha (Catatan 6)                  N/A       (ii)               ECL sepanjang umur (pendekatan         1,463,048       (1,311 )       1,461,737           Trade receivables (Note 6)
                                                                                sederhana)/ Lifetime ECL (simplified
                                                                                approach)
                                                             Lancar/
        Piutang lain-lain (Catatan 8)              N/A       Performing         ECL sepanjang umur (pendekatan          128,703                -       128,703            Other receivables (Note 8)
                                                                                sederhana)/ Lifetime ECL (simplified
                                                                                approach)
                                                 BBB/Baa2    Lancar/
        Investasi (Catatan 10)                               Performing         EC L 12 bulan/12-month ECL             2,952,900               -      2,952,900               Investments (Note 10)
        Total                                                                                                          6,877,142       (1,311 )       6,875,831                               Total


                                                                                                     2023

                                                 Peringkat          Peringkat                                          Jumlah
                                                  kredit              kredit                                           tercatat                      Jumlah
                                                 external/          internal/                                           bruto/     Cadangan          tercatat
                                                 External            Internal     ECL 12 bulan atau sepanjang           Gross      kerugian/          neto/
                                                  credit              credit                 umur/                     carrying       Loss         Net carrying
                                                  rating              rating       12-month or lifetime ECL            amount      allowance         amount

                                                             Lancar/
        Kas dan setara kas (Catatan 5)             BBB       Performing         ECL 12 bulan/12-month ECL              1,230,544               -      1,230,544   Cash and cash equivalents (Note 5)
                                                                                ECL sepanjang umur (pendekatan
                                                                                sederhana)/Lifetime ECL (simplified
                                                                                approach)
                                                             Lancar/
        Kas di bank dan deposito yang dibatasi     BBB       Performing         ECL 12 bulan/12-month ECL                 2,100                -          2,100              Restricted cash in bank
          penggunaanya                                                          ECL sepanjang umur (pendekatan)/                                                              and time deposits
                                                                                Lifetime ECL (simplified approach)
        Piutang usaha (Catatan 6)                  N/A       (ii)               ECL sepanjang umur (pendekatan         1,244,512       (1,469 )       1,243,043           Trade receivables (Note 6)
                                                                                sederhana)/ Lifetime ECL (simplified
                                                                                approach)
                                                             Lancar/
        Piutang lain-lain (Catatan 8)              N/A       Performing         ECL sepanjang umur (pendekatan          105,869                -       105,869            Other receivables (Note 8)
                                                                                sederhana)/ Lifetime ECL (simplified
                                                                                approach)
                                                 BBB/Baa2    Lancar/
        Investasi (Catatan 10)                               Performing         ECL 12 bulan/12-month ECL              4,754,087               -      4,754,087               Investments (Note 10)
        Total                                                                                                          7,337,112       (1,469 )       7,335,643                               Total




                                                                                              85
Page 296
                                                                       The original consolidated financial statements included herein are in
                                                                                                                  the Indonesian language.


                 PT AVIA AVIAN Tbk
               DAN ENTITAS ANAKNYA                                                     PT AVIA AVIAN Tbk
        CATATAN ATAS LAPORAN KEUANGAN                                                AND ITS SUBSIDIARIES
                  KONSOLIDASIAN                                                  NOTES TO THE CONSOLIDATED
              Tanggal 31 Desember 2024                                              FINANCIAL STATEMENTS
          serta Untuk Tahun yang Berakhir                                            As of December 31, 2024
                Pada Tanggal Tersebut                                              and For the Year Then Ended
           (Disajikan dalam jutaan Rupiah,                                       (Expressed in millions of Rupiah,
                kecuali dinyatakan lain)                                             unless otherwise stated)

32. TUJUAN DAN KEBIJAKAN MANAJEMEN RISIKO                          32. FINANCIAL RISK MANAGEMENT OBJECTIVE AND
    KEUANGAN (lanjutan)                                                POLICIES (continued)

   Faktor-faktor risiko keuangan (lanjutan)                           Financial risk factors (continued)

   c.   Risiko likuiditas                                             c.    Liquidity risk

        Risiko likuiditas adalah risiko bahwa Grup akan                     Liquidity risk is the risk that the Group will have
        mengalami kesulitan dalam membayar liabilitas                       difficulties in paying its financial liabilities. The Group
        keuangannya. Grup mengelola risiko likuiditas                       manages its liquidity risk by maintaining an adequate
        dengan mempertahankan kas dan setara kas yang                       level of cash and cash equivalents to cover its short-
        cukup dalam memenuhi kebutuhan kas jangka                           term cash requirement. The Group also evaluates the
        pendeknya. Grup juga secara rutin mengevaluasi                      projected and actual cash flows regularly, as well as
        proyeksi arus kas dan arus kas aktual, serta jadwal                 the maturity date schedule of its financial assets and
        tanggal jatuh tempo aset dan liabilitas keuangan.                   liabilities.

        Tabel di bawah merupakan analisis jatuh tempo                       The following table analysis the Group’s financial
        liabilitas keuangan Grup dalam rentang waktu yang                   liabilities by relevant maturity groupings based on their
        menunjukkan jatuh tempo kontraktual untuk semua                     contractual maturities for an understanding of the
        liabilitas keuangan untuk pemahaman terhadap arus                   timing of the cash flows. The amounts disclosed in the
        kas. Jumlah yang diungkapkan dalam tabel adalah                     table are the contractual undiscounted cash flows
        arus kas kontraktual yang tidak terdiskonto (termasuk               (including principal and interest payments).
        pembayaran pokok dan bunga).

                                  Di bawah                              Lebih dari
                                 satu tahun/        1-5 tahun/        5 tahun/More            Jumlah/
                               Below one year         years           than 5 years             Total

        31 Desember 2024                                                                                           December 31, 2024
        Pinjaman bank                                                                                                       Short-term
            jangka pendek                9,360                 -                 -                 9,360                 bank loans
        Utang usaha                    787,701                 -                 -               787,701               Trade payables
        Utang lain-lain                 24,623                 -                 -                24,623               Other payables
        Beban akrual                   252,661                 -                 -               252,661            Accrued expenses
        Uang jaminan pelanggan           3,000                 -                 -                 3,000          Customers guarantee
        Liabilitas sewa                 66,112            14,767            18,604                99,483               Lease liabilities

        Jumlah                        1,143,457           14,767            18,604             1,176,828                             Total


                                  Di bawah                              Lebih dari
                                 satu tahun/        1-5 tahun/        5 tahun/More            Jumlah/
                               Below one year         years           than 5 years             Total

        31 Desember 2023                                                                                           December 31, 2023
        Pinjaman bank                                                                                                      Short-term
            jangka pendek                5,319                 -                  -                5,319                 bank loans
        Utang usaha                    650,658                 -                  -              650,658               Trade payables
        Utang lain-lain                 30,571                 -                  -               30,571               Other payables
        Beban akrual                   301,835                 -                  -              301,835            Accrued expenses
        Uang jaminan pelanggan           2,100                 -                  -                2,100          Customers guarantee
        Liabilitas sewa                 11,910            13,709              9,484               35,103               Lease liabilities

        Jumlah                        1,002,393           13,709              9,484            1,025,586                             Total




                                                                 86
Page 297
                                                                                   The original consolidated financial statements included herein are in
                                                                                                                              the Indonesian language.


                 PT AVIA AVIAN Tbk
               DAN ENTITAS ANAKNYA                                                                  PT AVIA AVIAN Tbk
        CATATAN ATAS LAPORAN KEUANGAN                                                             AND ITS SUBSIDIARIES
                  KONSOLIDASIAN                                                               NOTES TO THE CONSOLIDATED
              Tanggal 31 Desember 2024                                                           FINANCIAL STATEMENTS
          serta Untuk Tahun yang Berakhir                                                         As of December 31, 2024
                Pada Tanggal Tersebut                                                           and For the Year Then Ended
           (Disajikan dalam jutaan Rupiah,                                                    (Expressed in millions of Rupiah,
                kecuali dinyatakan lain)                                                          unless otherwise stated)

32. TUJUAN DAN KEBIJAKAN MANAJEMEN RISIKO                                      32. FINANCIAL RISK MANAGEMENT OBJECTIVE AND
    KEUANGAN (lanjutan)                                                            POLICIES (continued)

   Nilai Wajar Instrumen Keuangan                                                 Fair Value of Financial Instruments

   Nilai tercatat dan taksiran nilai wajar dari instrumen                         The fair values of the financial assets and liabilities are the
   keuangan Grup yang dicatat di laporan posisi keuangan                          carrying values and the estimated fair values of the Group
   konsolidasian tanggal 31 Desember 2024 dan 2023,                               financial instruments that are carried in the consolidated
   adalah sebagai berikut:                                                        statements of financial position as of December 31, 2024
                                                                                  and 2023, are as follows:

                                               31 Desember 2024/                        31 Desember 2023/
                                               December 31, 2024                        December 31, 2023

                                        Nilai Tercatat/    Nilai Wajar/          Nilai Tercatat/     Nilai Wajar/
                                        Carrying Value     Fair Values           Carrying Value      Fair Values

   Aset Keuangan                                                                                                                       Financial Assets
   Kas dan setara kas                         2,329,491            2,329,491           1,230,544            1,230,544          Cash and cash equivalents
   Kas di bank dan deposito berjangka                                                                                             Restricted cash in bank
      yang dibatasi penggunaannya                 3,000                3,000               2,100                2,100                and time deposits
   Investasi                                  2,952,900            2,952,900           4,754,087            4,754,087                        Investments
   Piutang usaha                              1,461,737            1,461,737           1,243,043            1,243,043                  Trade receivables
   Piutang lain-lain                            128,703              128,703             105,869              105,869                   Other receivables

   Jumlah Aset Keuangan                       6,875,831            6,875,831           7,335,643            7,335,643             Total Financial Assets

   Liabilitas Keuangan                                                                                                              Financial Liabilities
   Pinjaman bank jangka pendek                   9,189                9,189               5,222                5,222               Short-term bank loans
   Utang usaha                                 787,701              787,701             650,658              650,658                      Trade payables
   Utang lain-lain                              24,623               24,623              30,571               30,571                      Other payables
   Beban akrual                                252,661              252,661             301,835              301,835                  Accrued expenses
   Uang jaminan pelanggan                        3,000                3,000               2,100                2,100                Customer guarantee
   Liabilitas sewa                              84,193               84,193              26,690               26,690                      Lease liabilities

   Jumlah Liabilitas Keuangan                 1,161,367            1,161,367           1,017,076            1,017,076          Total Financial Liabilities



   Nilai wajar aset dan liabilitas keuangan ditentukan                            The fair values of the financial assets and liabilities are
   berdasarkan jumlah dimana instrumen tersebut dapat                             determined based on the amount at which the instrument
   dipertukarkan dalam transaksi kini antara pihak-pihak yang                     could be exchanged in a current transaction between willing
   berkeinginan (willing parties) dan bukan merupakan                             parties, other than in a forced sale or liquidation.
   pendapatan yang dipaksakan atau likuidasi.

   Instrumen keuangan yang disajikan di dalam laporan                             Financial instruments presented in the consolidated
   posisi keuangan konsolidasian dicatat sebesar nilai wajar,                     statements of financial position are carried at fair values,
   atau disajikan dalam jumlah tercatat baik karena jumlah                        otherwise, they are presented at carrying amounts as either
   tersebut adalah kurang lebih sebesar nilai wajarnya atau                       these are reasonable approximation of fair values or their
   karena nilai wajarnya tidak dapat diukur secara andal.                         fair values cannot be measured reliably.

   Metode dan asumsi berikut ini digunakan untuk                                  The following methods and assumptions were used to
   mengestimasi nilai wajar untuk setiap kelompok instrumen                       estimate the fair value of each class of financial instrument
   keuangan yang praktis untuk memperkirakan nilai                                for which it is practicable to estimate such value.
   tersebut.

   Nilai tercatat dari kas dan setara kas, kas di bank dan                        The carrying value of cash and cash equivalents, restricted
   deposito berjangka yang dibatasi penggunaannya,                                cash in bank and time deposits, short-term investments,
   investasi jangka pendek, piutang usaha, piutang lain-lain,                     trade receivables, other receivables, short-term bank loans,
   pinjaman bank jangka pendek, utang usaha, utang lain-                          trade payables, other payables, accrued expenses and
   lain, beban akrual dan uang jaminan pelanggan mendekati                        customer guarantee approximate their fair values due to
   nilai wajarnya karena bersifat jangka pendek.                                  their short-term nature.




                                                                         87
Page 298
                                                                         The original consolidated financial statements included herein are in
                                                                                                                    the Indonesian language.


                 PT AVIA AVIAN Tbk
               DAN ENTITAS ANAKNYA                                                        PT AVIA AVIAN Tbk
        CATATAN ATAS LAPORAN KEUANGAN                                                   AND ITS SUBSIDIARIES
                  KONSOLIDASIAN                                                     NOTES TO THE CONSOLIDATED
              Tanggal 31 Desember 2024                                                 FINANCIAL STATEMENTS
          serta Untuk Tahun yang Berakhir                                               As of December 31, 2024
                Pada Tanggal Tersebut                                                 and For the Year Then Ended
           (Disajikan dalam jutaan Rupiah,                                          (Expressed in millions of Rupiah,
                kecuali dinyatakan lain)                                                unless otherwise stated)

32. TUJUAN DAN KEBIJAKAN MANAJEMEN RISIKO                            32. FINANCIAL RISK MANAGEMENT OBJECTIVE AND
    KEUANGAN (lanjutan)                                                  POLICIES (continued)

   Nilai Wajar Instrumen Keuangan (lanjutan)                            Fair Value of Financial Instruments (continued)

   Investasi pada surat utang negara dan reksa dana                     Investment in government bonds and mutual funds
   merupakan aset Grup yang nilai wajarnya didasarkan                   represent the Group’s assets for which the fair value is
   pada kuotasi harga pasar terakhir (Level 1).                         stated based on the last quoted market prices (Level 1).

   Nilai wajar atas liabilitas sewa dinilai menggunakan                 The fair value of lease liabilities are determined by
   diskonto arus kas berdasarkan tingkat suku bunga efektif.            discounting cash flows at effective interest rate.


33. TAMBAHAN INFORMASI ARUS KAS                                      33. SUPPLEMENTARY CASH FLOW INFORMATION

   a.   Aktivitas non-kas                                               a.    Non-cash activities

        Aktivitas non-kas yang mendukung laporan arus kas                     Non-cash activities supporting the statement of cash
        pada setiap tanggal pelaporan adalah sebagai                          flows at each reporting dates are as follows:
        berikut:

                                                       2024                   2023
        Penambahan aset hak-guna                                                                          Addition of right-of-use assets
           melalui liabilitas sewa                          82,261                  11,993                     through lease liabilities
        Penambahan aset tetap melalui                                                                   Addition of fixed assets through
           reklasifikasi uang muka                                                                  reclassification from payment for
           pembelian aset tetap                             36,658                   7,767                   purchase of fixed assets
        Penambahan aset tetap melalui                                                                   Addition of fixed assets through
           utang usaha                                           -                   7,864                              trade payables

   b.   Rekonsiliasi utang neto                                         b.    Net debt reconciliation

                                        Kas/cerukan/
                                         Cash/Bank             Liabilitas sewa/              Jumlah/
                                          overdraft            Lease liabilities              Total
        Saldo                                                                                                                  Balance of
          1 Januari 2023                      2,163,491                 (73,533 )             2,089,958                January 1, 2023
        Arus kas                               (938,169 )                58,836                (879,333 )                       Cash flows
        Tambahan liabilitas sewa                      -                 (11,993 )               (11,993 )        Addition of lease liabilities
        Saldo                                                                                                               Balance of
          31 Desember 2023                    1,225,322                 (26,690 )             1,198,632           December 31, 2023

        Arus kas                              1,094,980                  24,758               1,119,738                         Cash flows
        Tambahan liabilitas sewa                      -                 (82,261 )               (82,261 )        Addition of lease liabilities
        Saldo                                                                                                               Balance of
          31 Desember 2024                    2,320,302                 (84,193 )             2,236,109           December 31, 2024




                                                                 88
Page 299
                                                                          The original consolidated financial statements included herein are in
                                                                                                                     the Indonesian language.


                 PT AVIA AVIAN Tbk
               DAN ENTITAS ANAKNYA                                                             PT AVIA AVIAN Tbk
        CATATAN ATAS LAPORAN KEUANGAN                                                        AND ITS SUBSIDIARIES
                  KONSOLIDASIAN                                                          NOTES TO THE CONSOLIDATED
              Tanggal 31 Desember 2024                                                      FINANCIAL STATEMENTS
          serta Untuk Tahun yang Berakhir                                                    As of December 31, 2024
                Pada Tanggal Tersebut                                                      and For the Year Then Ended
           (Disajikan dalam jutaan Rupiah,                                               (Expressed in millions of Rupiah,
                kecuali dinyatakan lain)                                                     unless otherwise stated)

33. TAMBAHAN INFORMASI ARUS KAS (lanjutan)                        33. SUPPLEMENTARY                    CASH      FLOW      INFORMATION
                                                                      (continued)

   c.   Pengaturan pembiayaan pemasok                                    c.     Supplier finance arrangements

        Grup mengoperasikan pengaturan pembiayaan                               The Group operates the following types of supplier
        pemasok sebagai berikut dengan PT Bank DBS                              finance arrangements with PT Bank DBS Indonesia:
        Indonesia:

        •     Untuk memastikan akses mudah ke kredit untuk                      •        In order to ensure easy access to credit for its
              pemasoknya dan memfasilitasi penyelesaian                                  suppliers and facilitate early settlement, the Group
              awal, Grup telah melakukan pengaturan                                      has entered into supplier finance arrangements
              pembiayaan pemasok yang memungkinkan                                       that permit the suppliers to obtain payment from
              pemasok untuk mendapatkan pembayaran dari                                  the banks for the amounts billed maximum up to
              bank untuk jumlah yang ditagih maksimum                                    90 days before the invoice due date. The
              hingga 90 hari sebelum tanggal jatuh tempo                                 arrangements permit the banks to early settle
              faktur. Pengaturan memungkinkan bank untuk                                 invoices of up to Rp 300,000 per month. The
              melunasi faktur lebih awal hingga Rp 300.000 per                           Group repays the banks the full invoice amount on
              bulan. Grup membayar bank jumlah faktur penuh                              the scheduled payment date as required by the
              pada tanggal pembayaran yang dijadwalkan                                   invoice. As the arrangements do not permit the
              seperti yang tertera dalam faktur. Karena                                  Group to extend finance from the banks by paying
              pengaturan tidak mengizinkan Grup untuk                                    them later than the Group would have paid its
              memperpanjang pembiayaan dari bank dengan                                  suppliers, the Group considers amounts payable to
              membayarnya lebih lambat dari Grup akan                                    the banks should be presented as part of trade
              membayar      pemasoknya,       Grup    tersebut                           account payables. As of December 31, 2024,
              menganggap jumlah yang dibayarkan kepada                                   9.64%, of trade account payables were amounts
              bank disajikan sebagai bagian dari utang usaha.                            owed under these arrangements.
              Pada tanggal 31 Desember 2024, 9,64% dari
              utang usaha adalah jumlah yang terutang
              berdasarkan pengaturan ini.

                                                                        2024

            Jumlah tercatat dari liabilitas                                                                         Carrying amount of the
              keuangan yang merupakan                                                                          financial liabilities that are
              subjek dari perjanjian                                                                           subject to supplier finance
              pembiayaan pemasok                                                                                               arrangement
            Disajikan sebagai bagian dari                                                                                 Presented as part of
              “utang usaha”                                                   75,906                                        “trade payables”

            Rentang tanggal jatuh tempo                               Hari/Days                                Range of payment due dates
              pembayaran (setelah tanggal                                                                            (after invoice date)
              faktur)
            Untuk liabilitas yang disajikan                                                                    For liabilities presented as part
              sebagai bagian dari “utang usaha”:                                                                         of “trade payables”:
              Liabilitas yang merupakan bagian                                                                    Liabilities that are part of
                 dari perjanjian pembiayaan                                                                                supplier finance
                 pemasok                                                            60                                       arrangements
              Utang usaha yang dapat
                 dibandingkan yang bukan
                 merupakan bagian dari                                                                          Comparable trade payables
                 pengaturan pembiayaan                                                                        that are not part of supplier
                 pemasok                                                   30 - 60                                   finance arrangement




                                                                 89
Page 300
                                                                         The original consolidated financial statements included herein are in
                                                                                                                    the Indonesian language.


                 PT AVIA AVIAN Tbk
               DAN ENTITAS ANAKNYA                                                       PT AVIA AVIAN Tbk
        CATATAN ATAS LAPORAN KEUANGAN                                                  AND ITS SUBSIDIARIES
                  KONSOLIDASIAN                                                    NOTES TO THE CONSOLIDATED
              Tanggal 31 Desember 2024                                                FINANCIAL STATEMENTS
          serta Untuk Tahun yang Berakhir                                              As of December 31, 2024
                Pada Tanggal Tersebut                                                and For the Year Then Ended
           (Disajikan dalam jutaan Rupiah,                                         (Expressed in millions of Rupiah,
                kecuali dinyatakan lain)                                               unless otherwise stated)

33. TAMBAHAN INFORMASI ARUS KAS (lanjutan)                         33. SUPPLEMENTARY                 CASH      FLOW       INFORMATION
                                                                       (continued)

   c.   Pengaturan pembiayaan pemasok (lanjutan)                         c.    Supplier finance arrangements (continued)

        Perubahan dalam liabilitas yang merupakan bagian                       Changes in liabilities that are subject to supplier
        dari pengaturan pembiayaan pemasok terutama                            finance arrangements are primarily attributable to
        disebabkan oleh pembelian barang dan penyelesaian                      additions resulting from purchases of goods and
        kas. Tidak ada perubahan non-kas yang material                         subsequent cash settlements. There were no material
        dalam liabilitas ini.                                                  non-cash changes in these liabilities.

        Grup tidak menghadapi risiko likuiditas yang                           The Group does not face a significant liquidity risk as a
        signifikan   sebagai   akibat  dari   pengaturan                       result of its supplier finance arrangements given the
        pembiayaan pemasoknya mengingat jumlah liabilitas                      limited amount of liabilities subject to supplier finance
        pada pengaturan pembiayaan pemasok yang                                arrangements and the group’s access to other sources
        terbatas dan akses Grup ke sumber pembiayaan lain                      of finance on similar terms.
        dengan persyaratan serupa.


34. KOMITMEN                                                       34. COMMITMENTS

   Pengeluaran modal yang telah diperjanjikan pada tanggal               Capital expenditure contracted as of December 31, 2024
   31 Desember 2024 dan 2023 namun belum diakui sebagai                  and 2023 but not yet recognised as liabilities amounted to
   kewajiban masing-masing sebesar Rp 61.743 dan                         Rp 61,743 and Rp 74,178, respectively.
   Rp 74.178.


35. INFORMASI SEGMEN                                               35. SEGMENT INFORMATION

   Manajemen        telah  menentukan     segmen      operasi            Management has determined the operating segments
   berdasarkan laporan yang ditelaah oleh Direksi, yang telah            based on the reports reviewed by the Directors, who has
   diidentifikasikan sebagai pengambil keputusan operasional             been identified as the Group’s chief operating decision
   utama Grup (”CODM”) dan yang mengambil keputusan                      maker (“CODM”) and made strategic decisions. The Group
   strategis. Grup menentukan segmen operasi menurut                     determines the operating segment by group of products.
   kelompok produk yang dijual. Grup menentukan segmen
   operasi menurut kelompok produk.

   Informasi segmen yang diberikan kepada Direksi untuk                  The segment information provided to the Directors for the
   segmen dilaporkan adalah sebagai berikut:                             reportable segments is as follows:

                                                                2024

                                         Solusi              Barang
                                       arsitektur/          dagangan/
                                      Architectural          Trading                Jumlah/
                                        solution              goods                  Total

   Penjualan neto                           5,847,703             1,623,653             7,471,356                                Net revenues
   Beban pokok penjualan                   (2,852,891)           (1,277,715)           (4,130,606)                          Cost of goods sold

   Laba bruto                              2,994,812               345,938             3,340,750                                 Gross profit

   Beban usaha                                                                                                         Operating expenses
   Beban penjualan                                    -                   -            (1,318,417)                          Selling expenses
   Beban umum                                                                                                      General and administrative
     dan administrasi                                 -                   -              (253,243)                               expenses

   Jumlah Beban Usaha                                 -                   -            (1,571,660)                  Total Operating Expenses

   Laba usaha                                                                          1,769,090                             Operating profit




                                                                90
Page 301
                                                                         The original consolidated financial statements included herein are in
                                                                                                                    the Indonesian language.


                  PT AVIA AVIAN Tbk
                DAN ENTITAS ANAKNYA                                                      PT AVIA AVIAN Tbk
         CATATAN ATAS LAPORAN KEUANGAN                                                 AND ITS SUBSIDIARIES
                   KONSOLIDASIAN                                                   NOTES TO THE CONSOLIDATED
               Tanggal 31 Desember 2024                                               FINANCIAL STATEMENTS
           serta Untuk Tahun yang Berakhir                                             As of December 31, 2024
                 Pada Tanggal Tersebut                                               and For the Year Then Ended
            (Disajikan dalam jutaan Rupiah,                                        (Expressed in millions of Rupiah,
                 kecuali dinyatakan lain)                                              unless otherwise stated)

35. INFORMASI SEGMEN (lanjutan)                                   35. SEGMENT INFORMATION (continued)

    Informasi segmen yang diberikan kepada Direksi untuk                 The segment information provided to the Directors for the
    segmen dilaporkan adalah sebagai berikut (lanjutan):                 reportable segments is as follows (continued):

                                                               2024

                                            Solusi            Barang
                                          arsitektur/        dagangan/
                                         Architectural        Trading               Jumlah/
                                           solution            goods                 Total

    Penghasilan (beban) lain-lain                                                                                  Other income (expenses)
    Pendapatan keuangan                                  -                -              285,105                             Finance income
    Beban keuangan                                       -                -               (2,539)                               Finance costs
    Bagian atas laba                                     -                -                                                 Share of profit of
      ventura bersama                                                                       2,678                           a joint venture
    Pendapatan lain-lain - neto                          -                -                14,260                          Other income - net

    Laba sebelum                                                                                                        Profit before income
      pajak penghasilan                                  -                -            2,068,594                              tax expense

    Beban pajak penghasilan                              -                -              (404,895)                        Income tax expense

    Laba tahun berjalan                                  -                -            1,663,699                         Income for the year

    Informasi segmen lainnya                                                                                     Other segment information
    Belanja modal yang tidak                                                                                                     Unallocated
       dapat dialokasikan                                -                -              406,551                     capital expenditures
    Beban depresiasi dan                                                                                                         Unallocated
       amortisasi yang tidak                                                                                            depreciation and
       dapat dialokasikan                                -                -              251,137                  amortisation expenses

    Aset dan liabilitas                                                                                                 Assets and liabilities
    Aset yang tidak dapat dialokasikan                   -                -           11,060,975                          Unallocated assets

    Aset Grup                                            -                -           11,060,975                         The Group’s assets

    Liabilitas yang tidak dapat
       dialokasikan                                      -                -            1,429,095                         Unallocated liabilities

    Liabilitas Grup                                      -                -            1,429,095                       The Group’s liabilities


                                                               2023

                                            Solusi            Barang
                                          arsitektur/        dagangan/
                                         Architectural        Trading               Jumlah/
                                           solution            goods                 Total

    Penjualan neto                            5,618,025          1,398,857              7,016,882                                Net revenues
    Beban pokok penjualan                    (2,686,054)        (1,147,492)            (3,833,546)                          Cost of goods sold

    Laba bruto                                2,931,971           251,365              3,183,336                                 Gross profit

    Beban usaha                                                                                                        Operating expenses
    Beban penjualan                                      -                -            (1,240,237)                          Selling expenses
    Beban umum                                                                                                     General and administrative
      dan administrasi                                   -                -              (226,090)                               expenses

    Jumlah Beban Usaha                                                                 (1,466,327)                  Total Operating Expenses

    Laba usaha                                                                         1,717,009                             Operating profit




                                                                91
Page 302
                                                                                 The original consolidated financial statements included herein are in
                                                                                                                            the Indonesian language.


                  PT AVIA AVIAN Tbk
                DAN ENTITAS ANAKNYA                                                              PT AVIA AVIAN Tbk
         CATATAN ATAS LAPORAN KEUANGAN                                                         AND ITS SUBSIDIARIES
                   KONSOLIDASIAN                                                           NOTES TO THE CONSOLIDATED
               Tanggal 31 Desember 2024                                                       FINANCIAL STATEMENTS
           serta Untuk Tahun yang Berakhir                                                     As of December 31, 2024
                 Pada Tanggal Tersebut                                                       and For the Year Then Ended
            (Disajikan dalam jutaan Rupiah,                                                (Expressed in millions of Rupiah,
                 kecuali dinyatakan lain)                                                      unless otherwise stated)

35. INFORMASI SEGMEN (lanjutan)                                           35. SEGMENT INFORMATION (continued)

    Informasi segmen yang diberikan kepada Direksi untuk                         The segment information provided to the Directors for the
    segmen dilaporkan adalah sebagai berikut (lanjutan):                         reportable segments is as follows (continued):

                                                                       2023

                                             Solusi                   Barang
                                           arsitektur/               dagangan/
                                          Architectural               Trading                Jumlah/
                                            solution                   goods                  Total

    Penghasilan (beban) lain-lain                                                                                          Other income (expenses)
    Pendapatan keuangan                                   -                       -              286,259                              Finance income
    Beban keuangan                                        -                       -               (4,077)                               Finance costs
    Bagian atas laba                                                                                                                Share of profit of
      ventura bersama                                     -                       -                   898                           a joint venture
    Pendapatan (beban) lain-lain - neto                   -                       -                (7,946)              Other income (expenses) - net

    Laba sebelum                                                                                                                Profit before income
      pajak penghasilan                                   -                       -             1,992,143                             tax expense

    Beban pajak penghasilan                               -                       -              (349,047)                        Income tax expense

    Laba tahun berjalan                                   -                       -             1,643,096                        Income for the year

    Informasi segmen lainnya                                                                                             Other segment information
    Belanja modal yang tidak                                                                                                             Unallocated
       dapat dialokasikan                                 -                       -              215,723                     capital expenditures
    Beban depresiasi dan                                                                                                                 Unallocated
       amortisasi yang tidak                                                                                                    depreciation and
       dapat dialokasikan                                 -                       -              218,794                  amortisation expenses

    Aset dan liabilitas                                                                                                         Assets and liabilities
    Aset yang tidak dapat dialokasikan                    -                       -            11,166,987                         Unallocated assets

    Aset Grup                                             -                       -            11,166,987                        The Group’s assets

    Liabilitas yang tidak dapat
       dialokasikan                                       -                       -             1,245,498                        Unallocated liabilities

    Liabilitas Grup                                       -                       -             1,245,498                      The Group’s liabilities


    SEGMEN GEOGRAFIS                                                             GEOGRAPHICAL SEGMENT

                                                              2024                    2023
    Pendapatan neto                                                                                                                  Net revenues
    Lokal                                                     7,471,356                7,016,882                                             Local

    Manajemen memonitor hasil dari kegiatan segmen                               Management monitors the operating results of its
    dilaporkan secara terpisah dengan tujuan untuk                               reportable segments separately for the purpose of making
    mengambil keputusan mengenai alokasi atas sumber                             decisions about resource allocation and performance
    daya dan penilaian kinerja. Kinerja segmen dievaluasi                        assessment. Segment performance is evaluated based on
    berdasarkan laba bruto. Beban penjualan, beban umum                          gross margin. The Group’s selling expenses, general and
    dan administrasi, beban dan penghasilan keuangan,                            administrative expenses, finance income and costs, other
    penghasilan (beban) lain-lain, neto, bagian dari laba (rugi)                 income (expenses), net, share in profit (loss) of a joint
    ventura bersama dan pajak penghasilan Grup tidak                             venture and income taxes are not included in the measure
    termasuk dalam ukuran laba rugi yang dilaporkan kepada                       of profit or loss that is reported to the CODM and therefore
    CODM sehingga tidak dialokasikan pada segmen                                 are not allocated to the reportable segments.
    dilaporkan.




                                                                        92
Page 303
                                                                           The original consolidated financial statements included herein are in
                                                                                                                      the Indonesian language.


                 PT AVIA AVIAN Tbk
               DAN ENTITAS ANAKNYA                                                         PT AVIA AVIAN Tbk
        CATATAN ATAS LAPORAN KEUANGAN                                                    AND ITS SUBSIDIARIES
                  KONSOLIDASIAN                                                      NOTES TO THE CONSOLIDATED
              Tanggal 31 Desember 2024                                                  FINANCIAL STATEMENTS
          serta Untuk Tahun yang Berakhir                                                As of December 31, 2024
                Pada Tanggal Tersebut                                                  and For the Year Then Ended
           (Disajikan dalam jutaan Rupiah,                                           (Expressed in millions of Rupiah,
                kecuali dinyatakan lain)                                                 unless otherwise stated)

36. REKLASIFIKASI LAPORAN              POSISI    KEUANGAN           36. RECLASSIFICATION OF CONSOLIDATED STATEMENT
    KONSOLIDASIAN                                                       OF FINANCIAL POSITION

   Grup melakukan reklasifikasi pada laporan posisi                        The Group made reclassifications in the 2023 consolidated
   keuangan konsolidasian 2023 untuk menyesuaikan                          statement of financial position to align the recognition of
   pengakuan aset hak-guna dengan penyajian dalam                          right-of-use assets with the presentation in the 2024
   laporan posisi keuangan konsolidasian 2024 untuk                        consolidated statement of financial position for the following
   transaksi berikut:                                                      transactions:

                                        Seperti yang
                                         dinyatakan
                                        sebelumnya/                                   Setelah
                                        As previously       Reklasifikasi/         reklasifikasi/
                                          reported         Reclassification       As reclassified


   Laporan posisi keuangan                                                                                Consolidated statement of financial
     konsolidasian                                                                                                               position

   Aset                                                                                                                                 Assets
   Aset lancar                                                                                                                  Current assets
   Beban dibayar dimuka                         58,004                (46,623)               11,381                           Prepaid expenses

   Aset tidak lancar                                                                                                       Non-current assets
   Aset hak-guna                                95,252                55,299               150,551                          Right-of-use assets
   Aset tidak lancar lainnya                    48,618                (8,676)               39,942                     Other non-current assets

   Laporan arus kas                                                                                                 Consolidated statement of
     konsolidasian                                                                                                              cash flows

   Arus kas dari aktivitas operasi                                                                       Cash flows from operating activities
   Pembayaran ke pemasok                     (4,397,297)              55,299             (4,341,998)                    Payments to suppliers

   Arus kas dari aktivitas investasi                                                                      Cash flows from investing activities
   Perolehan aset hak-guna                      (14,289)              (55,299)              (69,588)             Additions of right-of-use assets



37. KEJADIAN SETELAH PERIODE PELAPORAN                              37. SUBSEQUENT EVENTS AFTER REPORTING PERIOD

   Pembelian saham treasuri                                                Purchase of treasury shares

   Sampai dengan tanggal laporan keuangan konsolidasian                    Up to the issuance date of these consolidated financial
   ini diterbitkan, Perusahaan telah melakukan pembelian                   statements, the Company repurchased 261,550,800 shares
   kembali 261.550.800 lembar saham biasa Perusahaan                       of its own ordinary shares through purchases on the IDX
   melalui pembelian pada BEI (Catatan 1b). Pembelian                      (Note 1b). This repurchase transaction is intended to
   kembali saham Perusahaan ini ditujukan untuk menjaga                    stabilise the Company’s share price. The total amounts paid
   stabilitas harga saham Perusahaan. Jumlah pembayaran                    to acquire the shares were Rp 108,304 (Rp 382 -
   untuk mengakuisisi saham tersebut adalah sebesar                        Rp 432/share - full amount).
   Rp 108.304 (Rp 382 - Rp 432/lembar saham - nilai penuh).




                                                                 93
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Names mentioned 138 people and organisations named in the text · linked when the evidence is strong

linked org Avia Avian Tbk p.3 ×372
linked person Mohammad Noor Rachman Soejoeti · Commissioner p.39 ×11
linked person WIJONO TANOKO · President Director p.43 ×34
linked person Ruslan Tanoko · Vice President Director p.47 ×29
linked person Kurnia Hadi Sinanto · Member p.47 ×18
linked person Angelica Tanisia Jozar · Direktur p.47 ×17
linked org PT Tancorp Surya Sentosa p.51 ×19
linked org PT Wahana Lancar Rejeki p.51 ×22
linked org Archipelago Investment Pte Ltd p.51 ×6
linked person Sammy Tony Saul · Member p.66
linked person Bobby Septian Yahya · Member p.66 ×2
linked org Jaya Sukses Makmur Sentosa Tbk p.69 ×2
linked org Sariguna Primatirta Tbk p.69 ×4
linked org Tancorp Global p.69
linked org Caturkarda Depo Bangunan Tbk p.69 ×8
linked org Penta Valent Tbk p.69 ×2
linked org Ristia Bintang p.70
linked org Nusantara Sejahtera Raya Tbk p.70 ×2
linked person Sensasi Istana Warna p.77 ×8
linked person Sammy TS Lalamentik · Anggota p.220 ×2
linked person Wardiman Wijaya · Anggota p.220
possible person Dr. Susanti S.H. · Notaris p.51 ×11
possible person Wardiman · Member p.66 ×2
possible org PT Bursa Efek Indonesia p.70 ×5
possible person Robert Christian Tanoko Tanoko p.74
possible org Otoritas Jasa Keuangan p.79 ×2
possible person David p.81
possible person Prof. Dr. Satrio p.82 ×2
unresolved org Financial Services Authority p.2 ×6
unresolved org Indonesia Stock Exchange p.5 ×12
unresolved org Yayasan Keanekaragaman Hayati Indonesia p.20 ×4
unresolved org Ministry of Environment and Forestry p.21 ×3
unresolved org Kementerian Lingkungan Hidup dan Kehutanan p.21
unresolved org PT Tirtakencana Tatawarna p.24 ×23
unresolved org PT Tirtakencana Batamindo p.24 ×13
unresolved org Yayasan Keanekaragaman Hayati p.25
unresolved org Ministry of Environment p.25
unresolved org PT Lloyd’s Register Indonesia p.26 ×8
unresolved org Information Security Intertek Certification Limited p.26
unresolved org LRQA Limited p.26 ×16
unresolved org LRQA Limited LRQA Group Limited p.26 ×2
unresolved org LRQA Group Limited p.26 ×5
unresolved org LRQA'. LRQA Group Limited p.26
unresolved org PT. Lloyd's Register Indonesia Issued p.26
unresolved org PT. Lloyd's Register Indonesia Area Operations Manager p.26
unresolved org Ministry of Industry Supersilk p.27
unresolved org Ministry of Industry p.30 ×37
unresolved person Indrawati Setiabudhi · Notaris p.50 ×2
unresolved org Minister of Justice p.50
unresolved org Malang District Court p.50
unresolved org Ministry of Law and Human Rights p.51
unresolved person Soetikno Tanoko’s Mr. Soetikno Tanoko p.52 ×5
unresolved org PT Walt Disney Indonesia p.53
unresolved org Pte Ltd p.53 ×3
unresolved org PT Bangun Bersama Solusindo Archipelago Pte Ltd. p.53
unresolved org PT Cipta Mortar Utama p.53
unresolved org PT Bangun Bersama Solusindo p.53 ×6
unresolved org PT Bira Industri Rejeki Agung p.53
unresolved org PT Multipro Paint Indonesia p.53 ×9
unresolved org PT Tirtakencana p.54 ×2
unresolved org Minister of Manpower p.54
unresolved person Hermanto Tanoko. Mr. Soetikno Tanoko · Member p.55 ×28
unresolved person Robert Christian Tanoko. At · Director p.55 ×30
unresolved org PT Solusi Rumah Praktis p.55 ×8
unresolved org PT Tirtakencana Tatawarna. Architectural Solutions Wall p.61
unresolved org Ministry of Manpower p.64
unresolved person Iwan Sigit · Member p.66 ×2
unresolved person Anwar · Notaris p.69 ×12
unresolved org PT Tancorp Global Sentosa p.69
unresolved org PT Avia Avian Industri Pipa p.69 ×10
unresolved org Ministry of Finance p.70 ×3
unresolved org Indonesia Money Printing Corporation p.70
unresolved org Ristia Bintang Mahkota Sejati Tbk p.70 ×2
unresolved org PT Kliring Penjaminan Efek Indonesia p.70
unresolved org PT Kustodian Sentral Efek Indonesia p.70
unresolved org PT Bursa Efek Indonesia. Affiliation Mr. Mohammad Noor p.70
unresolved org Shanghai Banking Corporation Limited p.72
unresolved org PT Tiga Arga p.76
unresolved org PT Nipsea Paint p.76
unresolved org PT Tancorp Surya p.77
unresolved org PT Wahana Lancar p.77
unresolved org PT Sensasi Istana Warna Robert Christian p.77
unresolved org PT Jaya p.78
unresolved org PT Sensasi p.78 ×2
unresolved org PT Asiapasifik p.78
unresolved org PT Vistra p.78
unresolved org PT Rukun p.78
unresolved org PT Sinar Surya p.78
unresolved org PT Marco Mega Tjijen p.78
unresolved org PT Wira Laju p.78
unresolved org PT Tancorp p.78 ×2
unresolved org PT Voka Rejeki p.78
unresolved org PT Wahana p.78
unresolved org PT Tancorp Surya Sentosa. Meanwhile p.78
unresolved org PT Bangun Bersama p.80 ×2
unresolved org PT Multipro Paint p.80
unresolved org PT Solusi Rumah Praktis Solusindo p.80
unresolved org PT Tirtakencana Tatawarna Legal Basis p.81
unresolved person Dyah Ambarwaty Setyoso p.81
unresolved org PT Solusi Rumah Praktis Legal Basis p.81
unresolved org PT Multipro Paint Indonesia Legal Basis p.81
unresolved person Operating Rusdi Mulyono p.81
unresolved org PT Bangun Bersama Solusindo Legal Basis p.82
unresolved person Operating Emmyra Fauzia Kariana p.82
unresolved person None Notary Dr. Susanti p.82
unresolved org PT Bima Registra p.82
unresolved org PT Tirtakencana Tatawarna TKBI p.86
unresolved org PT Bangun Bersama Solusindo SRP p.86
unresolved org Pusat Statistik p.98 ×2
unresolved org Bank Indonesia p.98 ×2
unresolved org PT Panca Kalsiumindo Perkasa. Avian Brands’ p.102
unresolved person Akta Notaris Liestiani Wang · Notaris p.218 ×2
unresolved org Minister of Law and Human Rights p.218
unresolved org Menteri Hukum dan Hak Asasi Manusia Republik p.218
unresolved org PT SRP p.220
unresolved org PT MPI p.220
unresolved org PT TKTW p.220 ×2
unresolved org PT TKBI p.220
unresolved org PT Megadepo p.263
unresolved org PT Caturkarda Depo p.263
unresolved org Bangunan Tbk p.263
unresolved org PT Megadepo Indonesia p.263 ×2
unresolved org PT Bangun Bersama Solusindo Lain-lain p.263 ×2
unresolved org PT Wahana Lentera Raya p.263 ×4
unresolved org PT Wahana Lentera Raya Lain-lain p.263 ×2
unresolved org PT Sarana Depo Kencana p.263 ×2
unresolved org PT Mitra Mulia Makmur p.265 ×2
unresolved org PT Kencana Lintasindo Internasional p.265 ×2
unresolved org PT Panca Kalsiumindo Perkasa p.265 ×2
unresolved org PT Wahana Lancar Rejeki Archipelago Investment p.285 ×2
unresolved org Archipelago Investment Private Limited p.285
unresolved org Private Limited p.285 ×3
unresolved — Rudi Tanoko p.285 ×2
unresolved — Rony Tanoko p.285 ×2
unresolved — kepemilikan di bawah 5%) p.285 ×2

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