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        TRANSFORM FOR
        EXCELLENCE
       Welcome to the 2023 Annual Report of PT Remala Abadi
       Tbk. The Company has chosen the theme "Transform for
       Excellence,” based on careful consideration of the Compa-
       ny's track record and business performance in 2023. The
       theme reflects the business and organizational strategies
       aimed at long-term success.

       By utilizing technology and innovation at every step for sus-
       tainable transformation, the Company has fostered a shift in
       behavior within the organization from a conservative
       attitude to one that is dynamic and positive. PT Remala
       Abadi Tbk has successfully integrated into the digital eco-
       system in the Greater area of Jabodetabek (Jakarta, Bogor,
       Depok, Tangerang, and Bekasi) and, more broadly, in Indo-
       nesia. The Company has empowered its organization and
       provided exceptional service to customers and stakehold-
       ers.

       Our commitment to innovation has resulted in various Inter-
       net services, including broadband Internet services, local
       link services, managed services (such as IP CAM, VOIP,
       Wi-Fi device settings), server colocation, and busi-
       ness-to-business fiber optic connectivity/installation. We
       are also dedicated to developing reliable infrastructure to
       provide the best service and solutions to all customers, con-
       sistently maintaining our commitment to creativity and inno-
       vation.

       This annual report details the Company's performance
       across business, operational, governance, and social
       responsibility aspects. It covers various areas, including
       product quality, digital security, anti-corruption measures,
       environmental initiatives, employment, occupational health
       and safety, as well as community and customer social
       development. The report has been comprehensively
       prepared to provide readers with a clear understanding of
       the company's performance and to serve as a tool for man-
       agement to evaluate and improve future performance.




01   PT. Remala Abadi Tbk | Annual Report 2023
Page 4
ABOUT THE
ANNUAL REPORT
The Annual Report provides an overview of the Company's
business performance and economic growth in a fiscal year.
This report has been prepared in compliance with principles of
Good Corporate Governance, namely Transparency, Account-
ability, Responsibility, Independence, and Fairness. In addi-
tion, the report complies with OJK Regulation No. 29/PO-
JK.04/2016 concerning Annual Reports of Issuers or Public
Companies.

This report was prepared in accordance with SEOJK No.
16/SEOJK.04/2021 regarding the Company as a public entity.
The 2023 Annual Report also serves as a sustainability report
in compliance with OJK Regulation No. 51/POJK.03/2017 on
the implementation of sustainable finance for issuers and
public companies.

The Annual Report and Sustainability Report are prepared
separately to allow stakeholders to see the different aspects
and reporting perspectives of each. Together, these two
reports provide a comprehensive set of information for stake-
holders.




                          PT. Remala Abadi Tbk | Annual Report 2023   02
Page 5
                                                                    PENDAHULUAN




 1
     FOREWORD
     2023 Annual Report Theme                                                01

     About the Annual Report                                                 02

     Financial Highlights                                                    05

     Brands of PT Remala Abadi Tbk                                           06




 2
     ABOUT PT REMALA ABADI TBK
     Corporate Identity                                                      09

     Vision, Mission and Corporate Values                                    10

     Service Areas                                                           11

     Business Strategy                                                       12

     Business Activities                                                     13

     Company Services                                                        14

     Milestones                                                              15

     Shareholders Composition                                                17

     Certification of Bursa Efek Indonesia                                   18

     Listing Event Bursa Efek Indonesia                                      19

     Awards and Certifications                                               20




 3
     MANAGEMENT DISCUSSION AND ANALYSIS
     Consumer erformance Overview                                            23

     Overview of Financial and Operational Performance                       25

     Financial Review                                                        26

     Consolidated Statements of Profit Loss and Other Comprehensive Income   32

     Consolidated Statement of Cash Flow                                     34

     Financial Ratios                                                        36

     Liquidity and Solvency                                                  36

     Human Resources Development                                             38




03                PT. Remala Abadi Tbk | Annual Report 2023
Page 6
4
                                                              PENDAHULUAN


 MANAGEMENT REPORT
 Board of Directors Report                                            41

 Perofromance Overview                                                44

 Board of Commissioners Report                                        53




5
 CORPORATE GOVERNANCE
 Corporate Governance                                                 59

 Corporate Governance Structure                                       66

 Structure Organization                                               67

 General Meeting of Shareholders                                      69

 Board of Commissioners                                               71

 Board of Directors                                                   73

 Corporate Secretary                                                  75

 Audit Committee                                                      76

 Internal Audit                                                       77




6
 Nomination and Remuneration Committee                                79


 CORPORATE SOCIAL RESPONSIBILITY
 Corporate Social Responsibility Related to Society                   83

 Corporate Social Responsibility Related to the Environment           84




 7
                                                                      85
                  STATEMENT LETTER




  8                             FINANCIAL STATEMENT




              PT. Remala Abadi Tbk | Annual Report 2023
                                                                      86




                                                                       04
Page 7
                                                                                         PENDAHULUAN




     Financial Performance


                                 Revenue grew by 3.66%
                                 year-over-year (YoY),
                                 reaching IDR 7,684 billion.

      Market penetration, supported by             Net profit for the year was IDR 26,106
      consistent      maintenance       and        billion, reflecting a 0.11% YoY increase,
      improvement of network and service           supported by cost-effectiveness
      quality, resulted in revenue growth of       measures.
      3.66% YoY to IDR 7,684 billion.

                     3,66% YoY                                    Rp 26,106 M

                 Rp 7,684 M                                     0,11% YoY

      EBITDA grew by 23.46% YoY to IDR              The Net Profit Margin decreased
      78.597 billion, also supported by             slightly to 12.01%, compared to the
      cost-effectiveness.                           previous year's 12.44%, due to provi-
                                                    sions for inventory fire losses.

                    23,46% YoY
                   Rp78,597 M                                          12,01%

      Remala Abadi's financial position            The Debt to EBITDA ratio is maintained
      remains healthy with a gearing ratio,        at 0.71x, reflecting a healthy financial
      reflected in bank debt and financing         condition.
      to EBITDA, of 0.23x.




                        0,23x                                           0,71x




05                         PT. Remala Abadi Tbk | Annual Report 2023
Page 8
                                                      PENDAHULUAN




BRAND NETHOME                  BRAND TACHYON




          PT. Remala Abadi Tbk | Annual Report 2023            06
Page 9
ABOUT
PT Remala Abadi Tbk

07     PT. Remala Abadi Tbk | Annual Report 2023
Page 10
                                                 The         telecommunications
                                                 industry in Indonesia has prom-
                                                 ising outlook, driven by the
                                                 country's demographic condi-
                                                 tions, particularly in the Greater
                                                 area of Jabodetabek (Jakarta,
                                                 Bogor, Depok, Tangerang, and
                                                 Bekasi), which is the Company's
                                                 main marketing region. The
                                                 large population creates a high
                                                 demand for internet services,
                                                 which continues to grow. This
                                                 increasing demand is also rein-
                                                 forced by advancements in
                                                 digital technology, including
                                                 5G.




The COVID-19 pandemic has significantly altered people's behavior, lead-
ing to the growth of online businesses. The tendency of Indonesians to
conduct transactions online has been a major driving factor for this
growth, which, in turn, has boosted demand for internet services. IN ADDI-
TION, the Work from Home (WFH) and Distance Learning programs, which
have seen an increasing trend since the pandemic, have also impacted
internet service demand.




                   PT. Remala Abadi Tbk | Annual Report 2023                          08
Page 11
                                                                              ABOUT PT REMALA ABADI TBK




 COMPANY IDENTITY




 The Company's head office is located at Graha Mustika Ratu, Jalan Gatot Subroto No. 74-75, South Jakarta
 DKI Jakarta 12870.


 Established in 2004, PT Remala Abadi Tbk operates in the telecommunications sector. The Com-
 pany provides Internet Access, Network & IT Solutions as a part of its Managed Services, support-
 ed by professional human resources and a reliable network infrastructure comprising Fiber Optic
 and Wireless technologies.




 The Company has extensive experience in serving the telecommunications and internet service
 needs of various business segments, including Corporate Telecommunications Industry, Govern-
 ment, Ministries and Institutions, Banking, Tourism, Education, Housing, and others. PT Remala
 Abadi Tbk conducts its business activities guided by a clear vision and mission, reflecting the
 aspirations of its founders.




09                               PT. Remala Abadi Tbk | Annual Report 2023
Page 12
                                                                     ABOUT PT REMALA ABADI TBK




                                                                             MISI
                                                       Always think creatively and
                                                       innovatively and Be committed
                                                       to providing appropriate and

 VISI                                                  reliable services and solutions
                                                       that all customers can rely on.
 To become the leading Internet Service and
 Solution provider in Indonesia (Ultimate
 Internet Solution).




NILAI-NILAI PERUSAHAAN
          Customer Satisfaction
          Providing appropriate, reliable, and dependable services and solutions to
          ensure customer satisfaction is a top priority.


          Creativity and Innovation
          Prioritizing creative and innovative thinking in every aspect of the business
          to continuously develop and meet the evolving needs of customers.


          Reliability and Quality
          Committed to providing services and solutions with a high level of reliability
          and guaranteed quality, ensuring customers' confidence in the products and
          services offered.

          Industry Leadership
          Aiming to become a leader in the internet services and solutions industry in
          Indonesia, setting benchmarks for quality standards and innovation.


          Sustainability
          Upholding the principles of sustainability in business operations by consider-
          ing environmental and social impacts and acting ethically in every decision.


          Collaboration and Partnership
          Building strong relationship with customers, partners, and other stakeholders
          to create a mutually beneficial and sustainable ecosystem.


          Social Responsibility
          Focusing on corporate social responsibility by making positive contributions
          to society and the surrounding environment through social programs and
          charitable activities.



                         PT. Remala Abadi Tbk | Annual Report 2023                          10
Page 13
                                                                 ABOUT PT REMALA ABADI TBK




     Service Areas




       10.000 Km                 150 ISP                         3 PROVINCE
       FIBER OPTIC           PARTNERSHIP                           12 CITY




11                   PT. Remala Abadi Tbk | Annual Report 2023
Page 14
                                            ABOUT PT REMALA ABADI TBK




                               Business Strategy

                                     market segmentation
                                     - Government agencies
                                     - Corporations
                                     - SOHO
                                     - Residential sectors



              Demographics
              Consider demographics, particularly em-
              phasizing markets with high internet
              usage demands, such as the Jabode-
              tabek area and regions with significant
              purchasing power.



              Product Value
              Provide value-added services tailored to
              each market segment, including man-
              aged services for government agencies
              and corporate clients.




              Solutions
              Develop specialized solutions to enhance
              the value proposition of bandwidth offer-
              ings, thereby securing a strong market
              position.




PT. Remala Abadi Tbk | Annual Report 2023                          12
Page 15
                                                                                        ABOUT PT REMALA ABADI TBK


    BUSINESS ACTIVITIES
    The main business activities encompass:                       • Cable Telecommunications Activities: This involves
    • Internet Service Provider: This encompasses services         the operation, maintenance, and provision of
     facilitating access to the internet, often referred to as     access to telecommunications cable infrastructure
     the gateway to the internet.                                  for transmitting voice, data, text, sound, and video. It
    • Information      Technology   Activities   and      Other    also includes operating fixed telecommunications
     Computer Services: This category covers various               networks for public telecommunications.
     information technology and computer services                 • Rental and Leasing Activities without Option Rights
     that haven't been specifically classified. It includes        for Office Machines and Equipment: This includes
     computer crash recovery, hardware and software                the rental of office machines and equipment
     installation, incident management, and digital                without operators, such as typewriters, accounting
     forensics.                                                    machines, calculating machines, data processing
    • Other Computer Programming Activities: This in-              machines, photocopiers, and office furniture.
     volves consultation regarding analysis, design, and          • Rental and leasing activities without rights to image
     programming of ready-to-use systems. It includes              recording and editing equipment options: This
     analyzing computer users' needs, problem-solving,             covers the rental of image and sound recording
     programming, and adapting existing software.                  equipment, including cameras, recording media,
    • Computer Consultation and Other Computer Facility            lighting, editing tools, and other related supporting
     Management Activities: This includes consultation             equipment.
     on computer hardware, planning computer systems              • Rental and Leasing Activities without Option Rights
     that integrate hardware, software, and communica-             for MICE Equipment: This includes the rental of
     tions technology. It also involves system installation,       machines and decoration equipment for Meeting,
     user training, computer system management, and                Incentive, Convention, and Exhibition (MICE) activi-
     related support services.                                     ties, as well as other supporting equipment.
    • Wireless    Telecommunications        Activities:    This   • Rental and Leasing Activities Without Option Rights
     encompasses the operation of mobile telecommu-                and Other Creative Industry Equipment: This involves
     nications networks utilizing cellular technology on           the rental of machines and other equipment related
     the earth's surface. It involves the operation, main-         to the creative industry.
     tenance, and access to facilities for transmitting           • Software Wholesale Trading: This involves activities
     voice, data, text, sound, and video via wireless              related to wholesale trading of software.
     infrastructure.



Supporting Business Activities, which encompass:
•      Perdagangan Besar Komputer dan Perlengkapan Komputer, yang mencakup: Perdagangan besar komputer
       dan peralatan komputer.
•      Perdagangan Besar Peralatan Telekomunikasi, yang mencakup: Perdagangan besar peralatan telekomunika-
       si, termasuk peralatan telepon, komunikasi, dan perlengkapan penyiaran radio dan televisi.
•      Perdagangan Eceran Komputer dan Perlengkapannya, yang mencakup: Perdagangan eceran komputer,
       peralatan, dan perlengkapan komputer berbagai jenis.
•      Perdagangan Eceran Piranti Lunak (software), yang mencakup: Perdagangan eceran piranti lunak (software)
       berbagai jenis, termasuk piranti lunak untuk video game.
•      Perdagangan Eceran Alat Telekomunikasi, yang mencakup: Perdagangan eceran alat telekomunikasi, seperti
       handphone, pesawat telepon, dan perlengkapan lainnya.
•      Aktivitas Penyewaan dan Sewa Guna Tanpa Hak Opsi Alat-Alat Bantu Teknologi Digital, yang mencakup:
       Penyewaan dan sewa guna usaha tanpa hak opsi (operational leasing) mesin, peralatan, dan barang kebu-
       tuhan teknologi digital, termasuk sewa render farm, sewa motion capture, sewa 3D (Three Dimensional) scan-
       ner, dan perlengkapan pendukung terkait lainnya.



13                                      PT. Remala Abadi Tbk | Annual Report 2023
Page 16
                                                                                      ABOUT PT REMALA ABADI TBK


                                                                           SERVICES OFFERED
Internet Dedicated
This service provides dedicated internet access for companies/corporates requiring 24-hour internet connectivity
to the global network with dedicated bandwidth allocation (1:1), ensuring network stability and reliability at all times.
The service is supported by a Fiber Optic network backbone and offers various usage options to cater to a wide
range of customers, providing appropriate and reliable solutions. The Company offers two types of Dedicated
Internet services:


 Dedicated Fiber Optic Internet                Dedicated Wireless Internet
 This service ensures network stability        This service ensures network stability and reliability for areas
 and reliability with a 10 Gbps Fiber          outside the reach of the fiber optic network. It supports wireless
 Optic network backbone. service that          devices with the latest technology and utilizes the Fiber Optic
 include:                                      network as the main backbone. service include:
 • Available bandwidth ranging from 20         • Available bandwidth ranging from 10 Mbps to 40 (Wireless 5Ghz).
    Mbps to 10 Gbps.                           • Available bandwidth ranging from 100 to 800 Mbps (Wireless
 • 24/7 priority support.                       Microwave).
 • Public IP /29 (5).                          • 24/7 priority support.
 • Free Cpanel / Hosting 10 GB.                • Public IP /29 (5).
 • Additional service support.                 • Free Cpanel / Hosting 10 GB.
 • SLA 99.5%                                   • Additional service support.
                                               • SLA 98%.




Broadband Internet                             1Business Broadband
                                               This service offers broadband internet access tailored to the needs
This service offers internet connec-
                                               of business/small and medium enterprises (SMEs), supporting
tivity   at   more   affordable   costs,
                                               various business fields. It provides affordable internet services with
supported by fiber optic and the
                                               support for fiber optic networks and customizable broadband
latest telecommunications technol-
                                               bandwidth management, allowing customers to focus on running
ogy. It utilizes shared networks and
                                               their businesses smoothly and safely.
provides fast internet access with
broadband/up to bandwidth, ensur-
ing adequate and stable network
quality. The Company provides two              Fiber To The Home ( FTTH )
types of Broadband Internet services           This service offers broadband internet access for residential homes
                                               and apartments, supporting the increasing demand for home
                                               internet access. It facilitates online learning and work from home
                                               (WFH) activities effectively.




Managed Service
These are additional or complementary IT solution services aimed at improving infra-                  Wireless Fidelity
structure performance in customer companies. The services include analysis, solution                       (WiFi)

design, and regular maintenance by competent and experienced IT experts. This                     Closed Circuit Television
service indirectly reduces initial investment costs and the need for additional human                    ( CCTV )

resources in infrastructure maintenance, allowing customer companies to focus on                        Networking
enhancing their HR performance.




                                      PT. Remala Abadi Tbk | Annual Report 2023                                           14
Page 17
                                                                                  ABOUT PT REMALA ABADI TBK


     MILESTONES



                                                                                               The Company
                                                                                               acquired 100%
                                                                                               (one hundred
                                                                                               percent) of shares,
                                                                                               totaling IDR
                                                                                               400,000,000,
                          The Company                        The Company obtained an           notarized by Erick
                          evolved into an                    "Internet Service Provider        Maliangkay, S.H.
                          Integration                        (ISP)" permit and launched
                          System provid-                     the internet product
                          er for Corpo-                      "Tachyon," targeting
                          rate Wireless                      Corporations, SOHO,
                          Solutions.                         Government, and projects
                                                             in the Jabodetabek area.




         2004                                2008                                  2012



                            2006                                   2011                            2013


      The Company                           The Company                          The Company
      began opera-                          focused on                           started com-
      tional activities                     Fiber Optic                          mercial opera-
      as a Value                            Infrastructure                       tions of Fiber
      Added Reseller                        & Partnership                        Optic (FO)
      and System                            business with                        infrastructure.
      Integrator for IT                     Internet Cafes
      Solutions.                            and Game
                                            Centers.




15                                 PT. Remala Abadi Tbk | Annual Report 2023
Page 18
                                                                           ABOUT PT REMALA ABADI TBK




                                             Established PT
                                             Solusi Aplikasi
                                             Andalan Semesta
                                             with a 90% invest-
                                             ment, comprising
                                             400 shares worth
                                             IDR400,000,000
                                             (four hundred
                                             million rupiah).




                                             Established PT
                                             Network Fiber
                                             Indonesia with a
              The Com-                       15% investment,
              pany                           comprising 300
              expanded                       shares worth                               Initial Public
              into the                       IDR300,000,000                             Offering
              Residential                    (three hundred                             (IPO).
              market.                        million rupiah).




 2014                          2020                                   2023



                  2019                           2021                                   2024


The Company
                             The Compa-
entered the                                                       Established PT
                             ny launched
Local Loop                                                        Aplikasi Informasi
                             the product
market com-                                                       Indonesia with a
                             "Net Home.id"
mercially                                                         50% investment,
                             for the
through PT                                                        comprising 125
                             Residential
PC24 Cyber                                                        shares worth
                             market.
Indonesia.                                                        IDR125,000,000
                                                                  (one hundred
                                                                  twenty-five million
                                                                  rupiah).




                            PT. Remala Abadi Tbk | Annual Report 2023                                    16
Page 19
                                                                         ABOUT PT REMALA ABADI TBK




                 SHAREHOLDERS COMPOSITION


                                                            Nominal Value of IDR50 per share
     Shareholders
                                                   Total Shares                Total Nominal
                                                                                   (IDR)

Authorized Capital                                 4.400.000.000             220.000.000.000

Issued and Fully Paid Capital
Verah Wahyudi Singgih Wong                         1.056.000.000              52.800.000.000
Jimmi Anka                                            44.000.000               2.200.000.000

Total Issued and Fully Paid Capital                1.100.000.000              55.000.000.000

Shares in Portepel                                 3.300.000.000             165.000.000.000




17                           PT. Remala Abadi Tbk | Annual Report 2023
Page 20
                                                      ABOUT PT REMALA ABADI TBK




CERTIFICATION OF BURSA EFEK INDONESIA




          PT. Remala Abadi Tbk | Annual Report 2023                          18
Page 21
                                                         ABOUT PT REMALA ABADI TBK


LISTING EVENT BURSA EFEK INDONESIA




19           PT. Remala Abadi Tbk | Annual Report 2023
Page 22
                                                                        ABOUT PT REMALA ABADI TBK


AWARDS AND CERTIFICATIONS


              APJII 2024                        APJII 2023




IMS 2024             ISO 20000-1:2018            ISO 9001:2015              ISO 14001:2015




           ISO 27001:2022          ISO 37001:2016              ISO 45001:2018




                            PT. Remala Abadi Tbk | Annual Report 2023                          20
Page 23
MANAGEMENT
DISCUSSION
AND ANALYSIS




21     PT. Remala Abadi Tbk | Annual Report 2023
Page 24
PT. Remala Abadi Tbk | Annual Report 2023   22
Page 25
                                                                    MANAGEMENT DISCUSSION AND ANALYSIS


CONSUMER PERFORMANCE OVERVIEW

                                                  Our journey thus far has yielded satisfactory results. While still
                                                  in its early stages, we have received notably positive feedback
                                                  from customers, even surpassing expectations. However, our
                                                  path has not been devoid of challenges. Presently, our focus
                                                  lies in expanding further into various regions.

                                                  We perceive partnerships as vital for mutual growth. Leverag-
                                                  ing various partnership models, Remala Abadi has expanded
                                                  fiber connectivity and delivered superior service.

                                                  Regarding regional selection in 2023, our focus remains on the
                                                  Greater area of Jabodetabek (Jakarta, Bogor, Depok,
                                                  Tangerang, and Bekasi), recognizing its high potential. Sales
                                                  figures from 2023 attest to this potential, with projections
                                                  indicating continued significant growth.




     This strategy reinforces Remala Abadi's market positioning. We are committed to designing products and
     services that address everyday needs, be it for education, entertainment, or work.

     We are dedicated to enhancing service quality and customer experience, prioritizing both innovation and
     network expansion. Looking ahead, our vision extends beyond fiber services, seeking new opportunities
     across various segments. We will continue expanding coverage through strategic partnerships and explo-
     ration of potential new areas.




     BUSINESS STRATEGY                                      potential faces volatility due to global influences
                                                            and rising interest rates, influencing budgeting
     In 2023, the national telecommunications industry,
                                                            strategies and policies.
     especially internet service provision, experienced
     significant growth, driven by heightened commu-
                                                            The Company also tracks changes in consumer
     nity needs to support business and daily activities.
                                                            spending patterns, particularly regarding govern-
     Capitalizing on this opportunity, the Company
                                                            ment policies affecting prices of essential goods,
     implemented a sales strategy diversifying market
                                                            which impact purchasing power and consumption
     segmentation to leverage widespread network
                                                            patterns.
     installations, resulting in substantial revenue
     growth.
                                                            In 2023, the Company sustained revenue growth
                                                            while effectively managing operational costs
     In addition to monitoring developments in similar
                                                            through efficiency measures across all business
     business sectors, we also consider macroeconom-
                                                            lines.
     ic factors. Indonesia's economy achieved 5.05%
     growth in 2023, indicating robust sustainability,
                                                            Initiatives undertaken in 2023 included productivity
     both regionally and globally. With an inflation rate
                                                            enhancements, efficient cost management, and
     of 2.61% year-on-year, lower than the IMF's 3.6%
                                                            precise      capital  expenditure     management,
     projection and significantly below the global aver-
                                                            achieved through standardization of internal
     age of around 7%, Indonesia demonstrates
                                                            procedures and integration of business lines to
     economic stability. However, macroeconomic
                                                            maximize productivity and cost-effectiveness.




23                                  PT. Remala Abadi Tbk | Annual Report 2023
Page 26
                                                                   MANAGEMENT DISCUSSION AND ANALYSIS



PT REMALA ABADI TBK'S BUSINESS STRATEGY
PRIORITIZES TARGETED MARKETING EFFORTS:
                                                                 TOWERS
-     Market segmentation encompasses government
      agencies, corporations, SOHO, and residential
                                                                 57
      sectors.
-     Focused on demographics, the company targets
      markets with high internet demand, such as the
      Jabodetabek area and affluent centers.
-     Value-added services, such as managed services for
      government agencies and corporations, support
      product offerings tailored to each segment.
-     Solutions are being developed to enhance the value
      proposition of bandwidth services, aiming for a
      strong market position.
                                                                NETHOME
                                                                CUSTOMERS   4355               MARKETING
                                                                                               OFFICES      3
    MARKETING ASPECTS                                       Marketing Activities
    The marketing aspect is crucial for an Internet
    Service Provider (ISP) company. PT Remala Abadi         The Company's marketing activities aim to
    Tbk offers internet services through a variety of       promote its internet services, attract new custom-
    products and packages tailored to meet the needs        ers, and retain existing ones. Marketing involves
    of each customer.                                       employing a variety of strategies and tactics to
                                                            build brand recognition, increase visibility, and
    -Products and Services, As an ISP company, PT           satisfy customer needs. The following are several
     Remala Abadi Tbk provides a range of products          marketing activities the Company carries out:
     and services to cater to every customer's require-     - B2B Direct Marketing, The Company maintains a
     ments. Offerings include wired, wireless, and satel-     marketing team responsible for making direct
     lite internet services. Additionally, the company        sales or offers to potential customers. The team
     offers internet packages with varying speeds and         highlights the various advantages of the Compa-
     prices to suit diverse customer needs.                   ny's services to pique the interest of potential
    -Pricing Strategy, Remala Abadi must employ the           customers.
     right pricing strategy to remain competitive in the    - Partnerships and Alliances, The Company targets
     market. Therefore, we endeavor to understand             partnerships and alliances with other companies,
     each customer's needs and provide the best               including telecommunications companies and
     prices possible, ensuring that our services are          even competitors who lack certain capabilities
     accessible to all audiences.                             that the Company possesses.
    -Promotion, In marketing our products and               - After-Sales Maintenance, The service provided by
     services, Remala Abadi employs various promo-            the Company extends beyond a one-time instal-
     tional strategies, such as social media advertising.     lation of data interconnections. Customers also
     An effective promotional strategy can enhance            subscribe to bandwidth managed by the Com-
     consumer awareness and interest in the products          pany on a monthly basis under a specified
     and services offered by the company.                     contract term. This entails delivering excellent
    -Innovation, As an ISP company, Remala Abadi              service from the Company's employees, includ-
     must continually adapt to technological                  ing prompt and appropriate responses to any
     advancements and innovations to compete in the           disruptions or issues. This high level of service
     market. We are committed to developing new,              aims to ensure customer satisfaction, leading to
     advanced products and improving services to              repeat orders and positive testimonials that
     meet the evolving needs of our customers.                enhance the Company's image and attract inter-
                                                              est from other telecommunications companies.




                                      PT. Remala Abadi Tbk | Annual Report 2023                                   24
Page 27
                                                               MANAGEMENT DISCUSSION AND ANALYSIS


OVERVIEW OF FINANCIAL AND
OPERATIONAL PERFORMANCE
                                              With the telecommunications sector becoming increas-
                                              ingly competitive in 2023, the Company is diversifying its
                                              market segmentation, particularly targeting the retail
                                              sector, while maintaining healthy price competition in
                                              line with market dynamics. The Company's extensifica-
                                              tion efforts in diversifying market segments aim to boost
                                              revenue volumes and control necessary price adjust-
                                              ments, thereby enhancing service quality and ensuring
                                              business sustainability, ultimately benefiting the industry
                                              as a whole. This strategy also aligns with financial
                                              targets, including increasing profitability and strength-
                                              ening the balance sheet structure.

                                              The Company's assets grew by 51.81%, driven by net fixed
                                              asset additions (CAPEX), especially in network installa-
                                              tion assets aimed at expanding marketable networks
                                              and enhancing customer service, leading to a 44.81% YoY
                                              traffic growth to 185.5G. The focus of CAPEX allocation on
                                              network expansion is evident in the increase in BTS units
                                              to 170, up by 12.58% YoY. To support working capital
                                              needs, the Company utilizes overdraft facilities, primarily
                                              with fixed interest rates, to mitigate currency fluctuation
                                              risks.

     With sustainable income and improved efficiency, the Company achieved positive results in
     line with targets, underscoring its commitment to delivering consistent positive outcomes. Rev-
     enue increased by 3.66% YoY to IDR 217.39 billion, while EBITDA surged beyond revenue growth
     by 23.46% YoY to IDR78.60 billion, resulting in an EBITDA margin of 36.15%. Profit after tax grew by
     0.65% to IDR26.16 billion. Maintaining cost efficiency, particularly in Cost of Revenue, which
     decreased by 20.74% YoY, indicates higher efficiency and a better cost-to-income ratio.




BUSINESS OUTLOOK

Approaching 2024, the global landscape appeared challenging, marked by geopolitical tensions and
trends towards de-globalization. The global economic growth forecast for 2024 shows signs of modera-
tion, with the OECD estimating a growth rate of 2.7%. The Indonesian economy is projected to maintain
a growth rate of around 5%, with GDP per capita expected to reach IDR82.5 million. Internet penetration
in Indonesia is anticipated to rise to 81.17% by 2025, accompanied by increased smartphone ownership,
reaching 89% of the population. Positive projections are also observed for FBB services, with household
penetration expected to grow to 26% by 2026.

Despite such challenges, the Indonesian telecommunications market presents significant opportunities,
particularly in the mobile segment with emerging 5G technology and in areas such as
Fiber-to-the-Home (FTTH) and Convergence services. Remala's strategic focus on sustainable profit-
ability, market adaptability, high-value customers, and prudent investment positions the Company to
navigate challenges successfully. The convergence journey aligns with evolving market demands,
ensuring promising prospects amid a complex global economy.




25                                PT. Remala Abadi Tbk | Annual Report 2023
Page 28
                                                               MANAGEMENT DISCUSSION AND ANALYSIS




Looking ahead, the Indonesian economy's growth          nological innovation, effective cost control, and
in 2024 is expected to provide ample opportuni-         broader structural cost transformation through-
ties for the Company's significant growth, espe-        out the organization to support the Company's
cially considering that internet penetration is pro-    vision and mission.
jected to reach only 79.5% of the total population
in early 2024.                                          The government's support is essential for busi-
                                                        ness growth in the internet service provider
The internet service provider industry in Indonesia     sector. Regulations that better support this field
is considered to be in the Growing Stage, charac-       are needed, especially considering that Indone-
terized by high competition levels. To thrive in this   sia's digital economy is projected to reach US$315
environment, the Company must innovate, diver-          billion by 2030. The Indonesian government's
sify market segments, and leverage the latest           Digital Indonesia Roadmap for 2021-2024, focus-
technology to deliver superior services to cus-         ing on digital infrastructure, government, econo-
tomers. Moving forward, maintaining sustainable         my, and society, underscores the importance of
business growth and achieving long-term reve-           accelerating digital transformation in the coun-
nue growth will require continued focus on tech-        try.




    FINANCIAL REVIEW
         The public accounting firm Jamaludin, Ardi, Sukimto & Rekan (a
         member firm of the Global Audit Trust Network) has audited the finan-
         cial statements of PT Remala Abadi Tbk and its subsidiaries. The audit
         was conducted by Ray Nainggolan, S.E., Ak., CPA, with an Accounting
         Practice License No. AP.1317, and the audit report was signed on 20 May
         2024.

         The accounting firm stated that the consolidated financial state-
         ments present fairly, in all material respects, the financial position of
         the Group as of December 31, 2023, as well as its consolidated finan-
         cial performance and consolidated cash flows for the year ended on
         that date, in accordance with Indonesian Financial Accounting Stan-
         dards.




                                 PT. Remala Abadi Tbk | Annual Report 2023                              26
Page 29
                                                        MANAGEMENT DISCUSSION AND ANALYSIS




     Gross Operating Income                               Total POP (in units)
     (in Billions of Rupiah)

                                                                                170
                                                                 151
     2023

             217,7 M

             209,7 M
                                                                2022            2023
     2022




                EBITDA                                                 Margin EBITDA

 100 M
  90 M                                             50%
  80 M                         78,60 M
                                                   40%
                                                                                       36,15%
                                                                       30,36%
  70 M           63,66 M
                                                   30%
  60 M
  50 M
                                                   20%
                                                   10 %
                2022           2023                                    2022            2023




27                         PT. Remala Abadi Tbk | Annual Report 2023
Page 30
                                                    MANAGEMENT DISCUSSION AND ANALYSIS




Total Traffic                               Total Units of BTS (in units)


                                                                   170
                                                   151


                185.5G
128.1G

2022             2023                              2022            2023




    Total Retail Customers

     2022                                    2023

                7384                                    9255
    Total Corporate Customers

     2022                                    2023

                3287                                    4532

                       PT. Remala Abadi Tbk | Annual Report 2023                    28
Page 31
                                                                                 MANAGEMENT DISCUSSION AND ANALYSIS



CONSOLIDATED STATEMENT
                                                       CONSOLIDATED STATEMENT OF FINANCIAL
OF FINANCIAL POSITION                                  POSITION

The Company recorded a growth in total assets          (in Million)
of 51.81% year-over-year (yoy) to IDR147.01
billion as of December 31, 2023, up from               DESCRIPTION                 Y-2023             Y-2022               Growth
IDR96.84 billion in the previous year. This
increase was mainly supported by an increase                                                                               Inc (Dec)

in current assets to IDR 35.94 billion, reflecting a
                                                                                                                      Rp                %
growth of 14.80%, and in non-current assets to
IDR111.07 billion, reflecting a growth of 69.48%       Current Assets                 35.936             31.302            4.634         14,80
yoy.
                                                       Non-Current Assets             111.070            65.537        45.533            69,48
In terms of liabilities, the Company recorded an
                                                       Total Assets                  147.006             96.839        50.168            51,81
increase in total liabilities of 75.68% yoy to
IDR44.09 billion. This increase was driven by an
                                                       Short-term Liabilities         44.091             26.159        17.932            68,55
increase in short-term liabilities to IDR23.88
billion, up 68.55% yoy. On the other hand, total       Long-term Liabilities           11.334             5.390            5.944        110,28
long-term liabilities increased by 110.28% yoy to
IDR20.21 billion.                                      Total
                                                       Liabilities                    55.425             31.549        23.876            75,68

The Company's market segment diversification
                                                       Total Equity                   91.581             65.290        26.291            40,27
successfully increased profitability, contributing
to an increase in retained earnings for the 2023
fiscal year. This was a key factor in increasing
the company's total equity to IDR91.58 billion,
growing 40.27% yoy compared to the previous
year.




CURRENT ASSETS
                                                          CURRENT ASSETS
Total current assets reached IDR35.94 billion in
2023, up 14.80% yoy from IDR31.30 billion                 (in Million)
booked in 2022. This was mainly attributed to an
increase in inventory to IDR12.12 billion in 2023,
                                                            DESCRIPTION                     Y-2023       Y-2022              Growth
up 51.72%, and advances to IDR7.73 billion in
2023, an increase of 7,626.32% compared to
                                                                                                                            Inc (Dec)
the previous year. The increase in inventory
supports the development of new network
                                                                                                                      Rp                %
installations and maintenance for existing
networks.
                                                          Cash                                9.440       13.178      -3.738            -28,36

Other receivables increased to IDR1.37 billion in
                                                          Accounts Receivable                 4.932        7.921      -2.988            -37,73
2023, a significant increase of 30,344.66% yoy
from IDR 0.005 billion booked in the previous
                                                          Other Receivables                   1.370               5   1.366         30344,66
year.
                                                          Supply                             12.124        7.991      4.133              51,72
However, amid the increase in current assets,
the Company's trade receivables experienced a             Prepaid expenses                      343        2.108      -1.764            -83,72
significant decrease of 37.73% yoy to IDR4.93
billion. This decrease from the previous year's           Advances                            7.726            100    7.626            7626,32
IDR7.92 billion was mainly due to an increase in
cash receipts from customers in 2023. More-               Total Current Assets               35.936       31.302      4.634              14,80
over, cash decreased significantly by 28.36%
yoy to IDR9.44 billion, in line with the purchase
of inventory stock in 2023.




29                                         PT. Remala Abadi Tbk | Annual Report 2023
Page 32
                                                                                     MANAGEMENT DISCUSSION AND ANALYSIS



NON-CURRENT ASSETS                                              NON-CURRENT ASSETS
The Company recorded an increase in non-cur-
                                                                (in Million)
rent assets of 69.48% yoy to IDR111.07 billion in
2023. The increase from the previous year’s
                                                                 DESCRIPTION                          Y-2023           Y-2022                Growth
IDR65.54 billion was mainly driven by an
increase in fixed assets of 63.46% yoy, from                                                                                                 Inc (Dec)
IDR56.67 billion in 2022 to IDR92.63 billion in
2023. This aligns with an increase in capital                                                                                           Rp                 %
expenditure for direct ownership assets,
amounting to IDR49.68 billion in 2023, including                Deferred Tax                            1.225            1.010            215              21,32
additional network installations at IDR30.66
billion.                                                        Other Receivables                       3.708            5.212          -1.504           -28,86


Cumulative (gross) right-to-use assets, includ-                 Investment down payment                   100                   1            99      9900,00
ing land, buildings, and network equipment,
                                                                Investment in Associates                  457              488               -31           -6,35
increased by 524.26% yoy to IDR12.71 billion.
The Company recorded its largest increase in
                                                                Fixed Assets                           92.628           56.666          35.962             63,46
network cable installations, reaching IDR5.42
billion in 2023, and assets in its building proper-
                                                                Right-of-use Assets                    12.711            2.036          10.675          524,26
ties at IDR7.07 billion.
                                                                Other Non - Current Assets                241              124            117              94,92
This increase in fixed assets reflects the
Company's commitment to business develop-                       Total Non-Current Assets              111.070           65.537          45.533             69,48
ment and delivering high-quality services.




SHORT-TERM LIABILITIES                                SHORT-TERM LIABILITIES



The Company’s short-term liabilities in 2023          (in Million)

amounted to IDR23.88 billion, an increase of          DESCRIPTION                                         Y-2023          Y-2022               Growth
68.55% yoy compared to IDR 14.17 billion
booked in the previous year. This was mainly                                                                                                   Inc (Dec)
influenced by an increase in short-term bank
                                                                                                                                          Rp               %
debt by 6,541.01% yoy to IDR12.60 billion in
2023 from IDR0.19 billion in the previous year.       Short-term bank debt                                 12.603               190      12.413       6541,01

Meanwhile, the Company’s trade payables               Account
                                                      Payable                                              15.449          13.179         2.271             17,23
increased by 17.23% yoy from IDR13.18 billion
in 2022 to IDR15.45 billion in 2023. This             Accrued
increase is related to significant purchases of       Expense                                                  4.415        5.160            -746          -14,45
network materials from third-party vendors/sup-
pliers in 2023.                                       Tax Expense                                              7.592        7.032             561              7,97

                                                      Consumer financing debt - due within one year            3.339            598       2.741            458,16
In addition, consumer financing debt due within
one year increased by 458.16% yoy from                Rental liabilities - due within one year                  692                 0         692        N/A
IDR0.60 billion in 2022 to IDR3.34 billion in
2023. This increase was related to the purchase       Total Short-term Liabilities                         44.091          26.159        17.932             68,55

of operational vehicles used by marketing and
operations to support service delivery to new
and existing customers.




                                          PT. Remala Abadi Tbk | Annual Report 2023                                                                              30
Page 33
                                                                                       MANAGEMENT DISCUSSION AND ANALYSIS




LONG-TERM LIABILITIES                                    LONG-TERM LIABILITIES


                                                         (in Million)
The Company’s long-term liabilities increased
by 110.28% yoy from IDR5.39 billion in 2022 to           DESCRIPTION                                                Y-2023          Y-2022                   Growth

IDR11.34 billion in 2023. This increase was                                                                                                                 Inc (Dec)
primarily due to an increase in rental liabilities,
which amounted to IDR29.79 billion in 2023, as                                                                                                         Rp               %

the Company had not carried out rental obliga-           Other Debt                                                       2.350        2.700            -350            -12,96
tions in 2022. This account represents future
minimum rental payments and the present value            Consumer financing debt - maturity of more than one year         2.223            670         1.553            231,62

of the minimum finance lease payments.                   Rental liabilities - due in more than one year                   4.149              0         4.149          N/A

                                                         Employee benefits liabilities                                    2.613        2.020             593             29,36
In addition, the Company’s long-term consumer
financing debt increased significantly by                Total Long-term Liabilities                                  11.334           5.390           5.944            110,28
231.62% yoy to IDR2.22 billion. The increase of
IDR 1.55 billion from the previous year was due
to additional financing for the purchase of opera-
tional vehicles in 2023.


                                                      EQUITY


EQUITY
                                                      (in Million)
The Company’s equity grew by 40.27% yoy to
                                                      DESCRIPTION                                           Y-2023            Y-2022                    Growth
IDR91.58 billion. The increase from the previous
year’s IDR 65.29 billion was supported by a                                                                                                            Inc (Dec)
growth in retained earnings of 45.18%, from
IDR57.82 billion in 2022 to IDR83.97 billion in                                                                                                   Rp               %
2023. In 2023, a portion of retained earnings
                                                                                                                                                                219900,0
amounting to IDR 54.98 billion was converted          Share capital - issued and paid-up capital              55.000                 25          54.975                0
into issued and paid-up capital.
                                                      Additional paid-in capital                                7.271              7.271                0               0,00
This increase in retained earnings was support-
                                                      Retain
ed by improved profitability performance in
                                                      Earning                                                 28.996              57.838         -28.842           -49,87
2023. The Company's bottom line demonstrated
an increase, with profit for the current period       Other comprehensive income                                    -62              -10               -52         521,64
reaching IDR26.11 billion in 2023, reflecting a
growth of 0.11% yoy. More detailed information        Non-controlling interests                                     376             165             210            127,38
regarding the company’s profitability perfor-
                                                      Total Equity                                            91.581              65.290         26.291               40,27
mance is provided in the following consolidated
statement of profit or loss and comprehensive
income.




31                                        PT. Remala Abadi Tbk | Annual Report 2023
Page 34
                                                                                        MANAGEMENT DISCUSSION AND ANALYSIS


CONSOLIDATED STATEMENTS OF PROFIT LOSS
AND OTHER COMPREHENSIVE INCOME
Cumulatively, the Company managed to record a 0.11% year-on-year increase in profit for the current period, totaling IDR 26.11
billion. This improved performance compared favorably to the previous year's figure of IDR 26.08 billion. The increase was
primarily supported by the Company's Revenue, which reached IDR 217.39 billion in 2023, reflecting a growth of 3.66%. This
growth was facilitated by cost savings initiatives throughout the year, notably in the Cost of Revenue category, which decreased
by -20.74% to IDR 96.86 billion in 2023 compared to IDR 122.20 billion in the previous year.


                 (in Million)


                 DESCRIPTION                                                        Y-2023        Y-2022              Growth


                                                                                                                      Inc (Dec)

                                                                                                                Rp                %

                 Revenue                                                             217.393       209.709       7.684                3,66

                 Repair and Maintenance                                               36.879        30.283       6.596             21,78

                 Expenses                                                             34.497        62.637      -28.139           -44,92

                 Accumulation                                                         10.995        15.004       -4.009           -26,72


                 Heritage Hall (BHP) of Universal of Service Obligation (USO) and

                             Heritage Hall (BHP) of Radio Station License
                             (ISR)                                                     3.463         3.574           -110             -3,09

                 Equipment rental                                                      1.040         7.735       -6.695           -86,56

                 Operating Expenses                                                    9.982         2.973       7.009            235,79

                 Cost of Revenue                                                      96.856       122.204      -25.348           -20,74

                 Gross Profit                                                        120.537        87.504      33.033             37,75

                 Commission                                                           16.077        14.951       1.126                7,53


                 Banquet                                                                 900           235           665          282,39

                 Advertisement                                                               98        213           -114         -53,77

                 Marketing                                                                   7              3          4          122,34

                 Sales Expense                                                        17.082        15.402       1.680             10,91


                 Salaries, wages, bonuses and benefits                                28.144        21.668       6.476             29,89

                 Utilities                                                             4.313         3.804           509           13,37


                 Depreciation of fixed and right-of-use assets                         4.545         2.473       2.071             83,76

                 Rental                                                                2.856         1.729       1.127             65,20


                 Professional Service                                                  2.818           427       2.392            560,78

                 Gasoline, tollroads, and parking                                      1.234           854           381           44,61

                 Repair and Maintenance                                                1.056           977            79              8,14

                 Office Operational Expenses                                           1.040         1.382           -342         -24,75


                 Legality and License                                                    642           389           253           65,09

                 Expedition                                                              519           522             -3             -0,58


                 Employee Benefits                                                       526           389           137           35,13

                 Retribution                                                             169               83         86          103,63

                 Others (under IDR 100 million)                                          633           738           -105         -14,24


                 General and administrative Expenses                                  48.495        35.434      13.061             36,86




                                                    PT. Remala Abadi Tbk | Annual Report 2023                                                 32
Page 35
                                                                                        MANAGEMENT DISCUSSION AND ANALYSIS


                Financial Expense                                                     784       1.392         -608      -43,67

                Other Expense (Income)                                             17.807        -230       18.038    -7833,74


                Operating Expenses                                                 84.168      51.998       32.170      61,87

                Profit Before Income Tax                                           36.369      35.506          862        2,43

                Benefits (Expenses) of Income Tax                                  -10.210      -9.517        -693        7,28

                Net Profit                                                         26.158      25.989          169        0,65

                Other Comprehensive Income (Loss) - Net                               -52          88         -140     -159,20

                Net Comprehensive Profit                                           26.106      26.077           29        0,11


                Net Profit that can be distributed to

                             Owner of the Parent Entity                            26.133      25.952          181        0,70

                             Non-controlling interests                                 25          37          -12      -32,02

                Total                                                              26.158      25.989          169        0,65


                Net Comprehensive Income that can be distributed to


                             Owner of the Parent Entity                            26.081      26.040           41        0,16

                             Non-controlling interests                                 25          38          -12      -32,78

                Total                                                              26.106      26.077           29        0,11

                Basic Earnings Per Share (in full figures)                         114,44    51.903,61   -51.789,17     -99,78




REVENUE                                                                       spike was primarily attributed to a "loss from inventory
The Company's total revenue increased by 3.66% to IDR                         write-off" of IDR11.77 billion due to a warehouse fire in
217.39 billion in 2023, compared to IDR 209.71 billion in the                 Cibubur. Added to the expenses were "tax penalties and fines"
previous year. This revenue growth was predominantly driven                   in 2020 amounted to IDR3.47 billion.
by the retail segment, which generated IDR20.75 billion in                    Salaries, wages, bonuses, and allowances expenses
revenue, reflecting a year-on-year growth of 11.77%. In                       increased by 29.89% year-on-year to IDR28.14 billion in 2023
addition, the SOHO segment contributed IDR41.13 billion in                    from IDR21.67 billion in the previous year, driven by additional
revenue, marking a growth of 49.37%. This growth aligns with                  employee recruitment. Correspondingly, the total number of
the expansion observed in the information and communica-                      employees in 2023 reached 334 people, compared to 289
tions sector, which outpaced Indonesia's GDP growth, reach-                   people in the previous year.
ing 7.59% year-on-year in 2023 (BPS 2023 data).                               Depreciation expenses also saw a significant increase, rising
                                                                              to IDR4.55 billion in 2023 from IDR2.47 billion in the previous
COST OF REVENUE                                                               year, mainly due to substantial purchases of buildings,
The Company’s Cost of Revenue experienced a significant                       vehicles, and office equipment.
decrease of -20.74% year-on-year to IDR 96.86 billion in 2023
compared to IDR122.20 billion in the previous year. This                      Rental costs increased by 65.20% to IDR2.86 billion in 2023
decrease was primarily attributed to a reduction in material                  compared to last year's IDR1.73 billion, attributed to office
costs, which declined by -44.92% to IDR34.45 billion, reflect-                rentals including Mustika Ratu and several properties for POP
ing improved control and monitoring of material usage for both                (BTS) and branch offices.
new network infrastructure and network maintenance.                           The increase in professional services fees amounted to
Depreciation expense decreased by -26.72% year-on-year to                     560.78% to IDR2.82 billion compared to the previous year's
IDR11.00 billion from IDR15.00 billion in the previous year,                  IDR0.43 billion, primarily related to the Company's IPO
mainly due to assets reaching the end of their depreciation                   process since mid-2023.
period. In addition, equipment rental expenses decreased by                   Sales Expenses also rose by 10.91% to IDR17.08 billion from
-86.56% year-on-year to IDR1.04 billion, compared to IDR                      the previous year's IDR15.40 billion, with commission increas-
7.74 billion in the previous year, as the Company shifted                     ing by IDR1.13 billion or 7.53% to IDR16.08 billion in 2023
towards owning its equipment.                                                 compared to the previous year's IDR14.95 billion.

OPERATING EXPENSES                                                            EBITDA
The Company’s operating expenses experienced a notable                        Supported by the Company's increased revenue and
increase of 61.87% year-on-year to IDR84.17 billion                           enhanced cost efficiency during 2023, Earnings Before
compared to IDR 52.00 billion recorded in the previous year.                  Interest, Tax, Depreciation, and Amortization (EBITDA) rose
The primary cause of this increase was the surge of other                     by 23.46% year-on-year to IDR78.60 billion in 2023 from
expenses by 7,833.74% year-on-year to IDR17.81 billion. This                  IDR63.66 billion in the previous year.


33                                                       PT. Remala Abadi Tbk | Annual Report 2023
Page 36
                                                                             MANAGEMENT DISCUSSION AND ANALYSIS

PROFIT BEFORE INCOME TAX
With revenue growth outpacing the increase in expenses, the Company's profit before income tax reached IDR36.37 billion in
2023, reflecting a growth of 2.43% year-on-year.

CURRENT YEAR PROFIT AND TOTAL
COMPREHENSIVE PROFIT
After deducting income tax expenses of IDR10.21 billion in 2023, the Company achieved a profit for the year amounting to
IDR26.16 billion, representing a growth of 0.65% year-on-year. Considering other comprehensive losses for the year after tax of
IDR0.05 billion, the Company's total comprehensive profit for the year reached IDR26.11 billion in 2023, up 0.11% year-on-year
compared to the previous year's figure of IDR26.08 billion. Meanwhile, basic net profit per share is expected to be IDR114.44 in
2023, compared to IDR51,903.61 in 2022.




CONSOLIDATED STATEMENT OF CASH FLOW
   (in Million)

   DESCRIPTION                                                  Y-2023          Y-2022           Y-2021          Y-2020




   Net Cash Flow from Operating Activities                         31.466           34.073           17.507          20.348




   Net Cash Flow for Investment Activities                         -46.167         -21.801           -3.650         -19.988




   Net Cash Flow for Financing Activities                           -1.450          -3.398             -489               -22




   Increase (Decrease) in Net Cash                                 -16.151           8.874           13.369             338




   Cash at the Beginning of the
   Period/Year                                                     12.989            4.115           -9.254           -9.592




   Cash at the End of the Period/Year                               -3.162          12.989            4.115           -9.254




   Cash consisting of

           Cash                                                      9.440          13.178            9.193           4.357

           Overdraft                                               -12.603            -190           -5.078          -13.611




   Total                                                          -3.162          12.989            4.115           -9.254




                                        PT. Remala Abadi Tbk | Annual Report 2023                                               34
Page 37
                                                                              MANAGEMENT DISCUSSION AND ANALYSIS


CASH FLOW FROM OPERATING ACTIVITIES
The Company experienced a decrease in net cash flow from operating activities by -7.65% year-on-year to IDR31.47 billion in
2023. This decrease was primarily due to a 27.75% year-on-year increase in payments to employees to IDR44.80 billion. In
addition, payments for operational activities (maintenance and upkeep) surged by 220.92% in 2023 to IDR40.06 billion from
IDR12.48 billion in the previous year.

               (in Million)


               DESCRIPTION                                           Y-2023       Y-2022                Growth


                                                                                                  Rp             %


               Net Cash Flow from Operating Activities                  31.466       34.073        -2.608          -7,65


               Net Cash Flow for Investment Activities                 -46.167      -21.801       -24.366         111,76


               Net Cash Flow for Financing Activities                    -1.450       -3.398           1.948      -57,34


               Increase (Decrease) in Net Cash                          -16.151        8.874      -25.025        -282,00


               Cash at the Beginning of the
               Period/Year                                              12.989         4.115           8.874      215,68


               Cash at the End of the Period/Year                        -3.162      12.989       -16.151        -124,35


               Cash consisting of

                        Cash                                              9.440      13.178        -3.738         -28,36


                        Overdraft                                       -12.603            -190   -12.413        6541,01


               Total                                                     -3.162      12.989       -16.151        -124,35


CASH FLOW FROM INVESTMENT ACTIVITIES
The Company recorded a higher net cash flow used for investment activities at IDR46.17 billion in 2023, reflecting a 111.76%
year-on-year increase compared to IDR21.80 billion in the previous year. This increase was due to the acquisition of fixed assets
in 2023, with realized capital expenditure reaching IDR44.14 billion, representing a 132.59% year-on-year increase compared to
IDR18.98 billion in 2022.

CASH FLOW FROM FINANCING ACTIVITIES
The Company recorded a decrease in net cash flow used for financing activities, amounting to IDR1.45 billion in 2023. This
decrease was attributed to lower payments for consumer financing debt, which decreased to IDR1.25 billion in 2023 from IDR1.90
billion in the previous year. Furthermore, a decrease was also noted in the payment of short-term bank debt, which was fully paid
off in 2023 compared to IDR1.50 billion in the previous year.

CASH AND CASH EQUIVALENTS AT YEAR END
Cumulatively, the Company recorded a net decrease in cash and cash equivalents amounting to IDR16.15 billion in 2023. Howev-
er, with support from cash and cash equivalents at the beginning of the year totaling IDR12.99 billion, the Company managed to
record cash and cash equivalents at the end of the year worth - IDR3.16 billion in 2023. To aid operations, the Company utilizes
overdraft facilities from banks amounting to IDR12.60 billion in addition to cash on hand amounting to IDR9.44 billion, while the
cash position at the end of the previous year stood at IDR12.99 billion.




35                                            PT. Remala Abadi Tbk | Annual Report 2023
Page 38
                                                                              MANAGEMENT DISCUSSION AND ANALYSIS


FINANCIAL RATIOS
         DESCRIPTION                                             Y-2023          Y-2022         Y-2021          Y-2020




          EBITDA Margin
         (%)                                                          36,15          30,36           21,07           18,98



         EBIT Margin (%)                                              29,01          22,51           15,12           11,80



         Gross Profit Margin (%)                                      55,45          41,73           36,73           37,96



         Net Comprehensive Income Margin (%)                          12,01          12,44            7,31            2,47



         Profit to Investment Capital Ratio (%)                       33,93          14,15            0,00            0,00



         Profit to Total Assets Ratio (%)                             17,76          26,93           15,17            3,99


         Profit to Equity Ratio (%)                                   28,51          39,94           28,96           10,27



         Current Ratio (%)                                            81,51         119,66           50,24           21,42



         Debt to Equity Ratio (%)                                      0,61           0,48            0,91            1,58



         Debt to Assets Ratio (%)                                      0,38           0,33            0,48            0,61



         Debt to Assets Ratio (%)                                      0,71           0,50            1,09            2,00



         Debt to Assets Ratio (%)

                         (Only Interest Bearing)                       0,23           0,02            0,26            0,75




LIQUIDITY AND SOLVENCY
Liquidity and solvency are critical aspects of the Company's operations, subject to various financial risks such as market, credit,
and liquidity risks. The Company's comprehensive risk management program is designed to address uncertainties in financial
markets and mitigate potential adverse impacts on its financial performance.




                                            PT. Remala Abadi Tbk | Annual Report 2023                                            36
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                                                                                  MANAGEMENT DISCUSSION AND ANALYSIS




CREDIT RISK
Credit risk, specifically, pertains to the possibility that one party to a financial instrument may fail to meet its obligations, leading
to financial losses for the other party. Remala Abadi Group is exposed to credit risk primarily through its operating activities,
notably trade receivables from third parties, and funding activities, including bank accounts. Managing trade receivables consti-
tutes the main credit risk exposure for Remala Abadi Group. To manage this risk, Remala Abadi Group diligently monitors the
collectibility of receivables, ensuring timely collections. In addition, periodic reviews of each customer's receivables are conduct-
ed to assess the likelihood of collection failures. Based on these assessments, reserves are established to mitigate potential
credit losses.
                                                                     December 31, 2023               December 31, 2023
          Cash
          Account Receivable
          Other Receivable
          Other Current ASsets
           Security Deposit
          Total


LIQUIDITY RISK
iquidity risk refers to the potential for the Group's cash flow position to indicate that short-term receipts may not be adequate to
cover short-term expenditures. Historically, the Group's liquidity needs have stemmed from financing investments and capital
expenditures related to business expansion initiatives. Substantial working capital is required by the Group to pursue new
projects and sustain operations. To address liquidity risk, the Group actively monitors and maintains cash levels deemed
sufficient to support its operations and mitigate the impact of cash flow fluctuations. Regular assessments of cash flow projections
and actual cash flows, including scrutiny of loan maturity schedules, are conducted. Additionally, the Group continuously evalu-
ates financial market conditions to ensure funding flexibility, thereby preserving the availability of committed credit facilities.


                                                                             December 31, 2023

                                              Recorded Amount             Total              Up to one year         From one to
                                                                                                                     five years
     Short-term bank debt
     Account Payable
     Accrual Expense
     Other Debt
     Consumer Financing Debt
     Rental Liabilities
     Total


MARKET POTENTIAL
While the COVID-19 pandemic has                ing adaptation, thus intensifying competi-     dynamics throughout 2023. Competition
receded in many countries worldwide, we        tion within the telecommunications             in the telecommunications BTS tower
now confront challenges stemming from          sector.                                        rental industry and fiber optic networks
global financial fragility, marked by          According to the Official Statistics Report    has become increasingly fierce. Addition-
inflation rates and looming recessionary       of Statistics Indonesia, the information       ally, the Company faces risks associated
threats. Concurrently, the domestic            and telecommunications sector grew at a        with changes in government regulations
telecommunications industry faces its          slower rate of 7.19 percent annually in the    and legislation. To tackle these challeng-
own set of hurdles. The government's           first quarter of 2023. This signals caution    es, the Company is implementing various
push for digital transformation aligns with    for the digital technology industry, which     strategies related to marketing, capacity
the public's escalating demand for             experienced rapid growth during the            expansion, efficiency enhancements,
internet access, thereby fostering             COVID-19 pandemic.                             technology adaptation, and business
remarkable market potential. However,          The consolidation of several major             development.
this potential is counterbalanced by swift     telecommunications operators in Indone-
technological advancements necessitat-         sia significantly impacts the industry




37                                        PT. Remala Abadi Tbk | Annual Report 2023
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                                                                            MANAGEMENT DISCUSSION AND ANALYSIS



HUMAN RESOURCES DEVELOPMENT
GENERAL OVERVIEW                               tion and other soft skills training to     Division. Its ease of use allows smooth
Human Resources (HR) is an important           improve employee interpersonal and         access to the latest information and
point that describes the human founda-         leadership skills.                         efficient management of each stage of
tion behind operational success. The         • Technical skills enhancement: Specific     data. Apart from that, this system also
Company is committed to being at the           courses and training are designed to       allows management to access HR data
forefront of the dynamic and competitive       update employees' knowledge and            transparently and in real-time. With this
Telecommunications industry by building        expertise in industry-relevant technical   system, the time and costs required for
a diverse team. The Company strives for        areas.                                     HR management can be minimized
employee development through continu-        • Other training: Various additional         compared to a manual approach.
ous training and development programs.         training, such as work safety training,
The Company provides opportunities for         business ethics and personal develop-      The Company has provided a number of
every employee to continue to improve          ment, are held to support overall          comprehensive educational and training
their skills and develop in their careers,     employee development.                      facilities to support employee develop-
but remains focused on a common vision                                                    ment. Training rooms equipped with the
and goals.                                   The Company's commitment to employ-          necessary hardware and software
                                             ee development does not stop there.          enable the implementation of various
The Company evaluates the regular            Every year, employee performance is          training programs. Structured training
performance of each employee to assist       thoroughly evaluated to measure their        materials cover various topics relevant to
in monitoring employee growth and            achievements and development poten-          the TELECOMMUNICATIONS industry.
providing constructive feedback for          tial. This evaluation is an important        Skilled and experienced instructors are
further development. The Company also        reference in providing fair and transpar-    responsible for presenting material clear-
provides competitive compensation and        ent promotion opportunities, by always       ly and supporting employee growth.
comprehensive benefits as recognition        prioritizing individual achievement and
of employee contributions and to support     dedication.                                  The Company also encourages employ-
the welfare of each employee.                                                             ees to obtain relevant certifications such
                                             More than just programs and evalua-          as CCNA, CompTIA Network+, or CISSP
The Company believes that investing in       tions, human resource policies at PT         to increase their credibility in the indus-
employees is an investment in the            Remala Abadi Tbk are designed to             try. Soft skills training such as communi-
long-term success of our company.            create a conducive work environment          cation, leadership, and time manage-
Overall, the Company believes that by        and motivate employees. The Company          ment are also available to develop
supporting and developing human              upholds the principle of equality in         employees' non-technical abilities. In
resources, the Company can achieve its       providing promotional opportunities,         addition, internship and field work
business goals while maintaining its         always basing them on the achieve-           programs are provided as opportunities
commitment to integrity, sustainability      ments and contributions of each individu-    for students and young professionals to
and sustainable growth. To achieve this      al. Every employee's work results, atten-    enter the telecommunications industry.
vision, the Company is building a work       dance and reports can all be accessed        Career development is also a focus with
culture that focuses on increasing the       online so they are very well recorded and    a clear career path. And, the company
productivity and professionalism of all      systematic. The Company collaborates         allocates a special budget for training,
employees.                                   to develop an HR Information System          demonstrating its commitment to
                                             (HRIS). The implementation of the            employee growth and development. All
This effort is realized through various      Online Overtime System, Online Payroll       of these tools contribute to improving
development programs, including:             System and Online Attendance System          employee capabilities and skills, which is
• Professional development: Strength-        has been implemented. It has a huge          a valuable investment in the company's
  ened through leadership, communica-        impact on work processes in the HR           long-term success.


At the end of 2023, the Company employed a total of 234 individuals, categorized based on various criteria:



                 21
                                   EDUCATIONAL LEVEL

                                                                                            58
                                                                                                              JOB TITLE
                                   • 2 employees held postgradu-
                                     ate degrees (S-2).                                                        - 2 Directors.
              permanent
              employees            • 150 employees held bachelor's                         Female              - 9 Managers.
  Employ-
                                     degrees (S-1).                         GENDER                             - 18 Supervi-
  ment

               213                                                                        176
                                   • 35 employees held diploma                                                   sors/Leaders.
  Status                             qualifications (D1-D3).
                                                                                                               - 205 other staff
               contract            • 47 employees had non-diplo-
                                                                                             Male                members
              employees              ma (high school) qualifications




                                         PT. Remala Abadi Tbk | Annual Report 2023                                               38
Page 41
 MANAGEMENT
 REPORT




39    PT. Remala Abadi Tbk | Annual Report 2023
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PT. Remala Abadi Tbk | Annual Report 2023   40
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                                                                                                     MANAGEMENT REPORT


BOARD OF DIRECTORS REPORT


                                                              Dear Shareholders and Stakeholders,
                                                              We extend our heartfelt gratitude to the presence
                                                              of Almighty God for His mercy and grace that have
                                                              guided us through the challenges of 2023. Despite
                                                              the intense competition in our industry, we have
                                                              managed to maintain our position, underscored
                                                              by our significance in the market and our financial
                                                              robustness. The performance of Remala Abadi in
                                                              2023 is a testament to our unwavering commit-
                                                              ment to delivering top-notch service to each of
                                                              our customers. Moving forward, we pledge to
                                                              continuously enhance our services to meet the
                                                              evolving demands of consumers across Indonesia.




MACROECONOMIC REVIEW
In 2023, the Indonesian economy exhibited stable growth amid global challenges. Here is an overview of Indonesia's macro-
economic landscape:
1. Economic Growth: Indonesia's GDP expanded by 5.05%, slightly lower than the previous year's 5.31%. This growth was
     primarily driven by domestic consumption, investment, and exports.
2. Monetary Stability: Bank Indonesia maintained the stability of the rupiah through responsive monetary policies, ensuring
     controlled inflation and supporting purchasing power.
3. Fiscal Policy: The government implemented expansionary fiscal policies, including increased spending on infrastructure
     and social programs, to bolster economic growth.

Meanwhile, the telecommunications sector in Indonesia is poised for significant growth in 2023, albeit at a slower pace than
during the COVID-19 pandemic. Key points regarding the sector's growth include:
1. Internet Use: The number of internet users in Indonesia reached 221 million people, reflecting increased access to
     information and technology acceptance.
2. Cell Phone Ownership: The proliferation of mobile phones continues, with 67.88% of Indonesians owning a mobile phone
     in 2022, indicating steady growth in mobile device adoption.
3. Digital Sector Opportunities: Despite intense competition, there are ample opportunities for startups, particularly in niche
     sectors.
4. Digital Services: Digital services are expected to drive telecommunications business growth, with an average increase of
     12% from 2020 to 2024.
5. Growth Projections: The technology and telecommunications sector is anticipated to sustain growth in 2023, driven by
     factors such as increasing cellular users and government support for innovation.
6. Prospects, The Indonesian economy is expected to continue growing in the coming years, supported by pro-growth
     policies from the government and Bank Indonesia, as well as increased investment and domestic consumption. This
     positive outlook is underpinned by various macroeconomic indicators showing strong performance and encouraging
     prospects. Sustained economic stability and responsive policies are key to navigating global uncertainties and ensuring
     long-term, sustainable growth.

This outlook paints a positive overall picture of the Indonesian economy in 2023, with various macroeconomic indicators
demonstrating robust performance and promising prospects. Maintaining economic stability and implementing responsive
policies are pivotal factors in navigating global uncertainties and ensuring sustainable growth.




41                                      PT. Remala Abadi Tbk | Annual Report 2023
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                                                                                                     MANAGEMENT REPORT


BUSINESS DEVELOPMENT                        With the Managed Service Provider, PT
IN 2023                                     Remala Abadi Tbk can offer more              Through these ISO standards, PT
                                            integrated and comprehensive services        Remala Abadi Tbk ensures that service
PT Remala Abadi Tbk is a company            to customers. A trained and experienced      quality is maintained, operational
engaged in ISP (Internet Service            technical team in internet network instal-   processes are well-managed, informa-
Provider) services, offering various        lation and maintenance ensures optimal       tion security is upheld, anti-bribery
types of internet services to its custom-   service quality and meets customer           practices are implemented, the environ-
ers. These include broadband internet       needs effectively.                           ment is protected, and employee health
services, local link services, managed                                                   and safety are prioritized.
services (such as IP CAM, VOIP, and         The presence of the Managed Service          In addition, by obtaining IMS certifica-
WiFi device settings), server colocation,   Provider also helps customers stay           tion, which integrates various ISO
and providing business-to-business          connected and operate without interrup-      standards, PT Remala Abadi Tbk
fiber optic connectivity/installation and   tion, as the technical team can provide      demonstrates its commitment to
multimedia.                                 fast and efficient support in resolving      increasing efficiency, effectiveness, and
                                            issues. This is a crucial part of PT         organization in its business operations.
With the brand names Tachyon and            Remala Abadi Tbk's commitment to             Implementing ISO standards also helps
Nethome, PT Remala Abadi Tbk has a          providing the best services and              the Company address increasingly
distinct focus in providing internet        solutions to all its customers.              complex business challenges and
services. Tachyon serves corporate and                                                   stringent market requirements.
government customers, while Nethome         PT Remala Abadi Tbk adheres to the
caters to residential or home customers.    principles of good corporate gover-          With changes in organizational behavior
                                            nance to achieve Good Corporate              from a conservative attitude to dynamic
The Company is committed to continu-        Governance. These principles include         and positive thinking resulting from
ously developing reliable fiber optic       management that is transparent,              implementing ISO standards, PT
infrastructure to provide the best          accountable, fair, and supportive of all     Remala Abadi Tbk can be more respon-
services and solutions to all customers.    Company stakeholders' interests. By          sive to market changes, innovative in
In addition, PT Remala Abadi Tbk            implementing good corporate gover-           providing internet solutions, and more
always maintains a commitment to work       nance, PT Remala Abadi Tbk ensures           systematic in its operations.
creatively and innovatively in providing    that each Company division is intercon-
internet services.                          nected and sustainable. This means all       Therefore, through implementing ISO
                                            company divisions work in a coordinat-       standards and integrating various
With a variety of services offered and a    ed and collaborative manner to achieve       aspects of its operations, PT Remala
focus on customer segmentation, PT          common goals. The principles of Good         Abadi Tbk can continue to develop and
Remala Abadi Tbk provides appropriate       Corporate Governance help PT Remala          become a reliable, trustworthy company
solutions to meet each customer's           Abadi Tbk maintain integrity, manage         committed to providing the best service
needs. Through the Tachyon and              risks effectively, and improve overall       to customers with progressive and
Nethome brands, the Company can             performance. With good corporate             excellence-oriented thinking.
reach various market segments more          governance, PT Remala Abadi Tbk can
specifically and effectively.               manage the Company efficiently, trans-
                                            parently, and responsibly.
PT Remala Abadi Tbk is committed to
ongoing innovation and adaptation to        Implementing Good Corporate Gover-
the latest technological developments.      nance also helps build trust and good
The Company is expected to continue         relationships      with   shareholders,
developing and transforming to excel in     customers, business partners, employ-
providing quality services and meeting      ees, and other related parties. This is a
customer expectations from the corpo-       crucial step in maintaining the Compa-
rate to the residential segments.           ny's reputation and ensuring continued
                                            business continuity. By implementing
PT Remala Abadi Tbk has a Managed           various ISO standards, including ISO
Service Provider that assists in techni-    20000-1 (Managed Service manage-
cal aspects such as installation and        ment), ISO 9001 (quality management),
maintenance of internet services,           ISO 27001 (Security System manage-
adding value for customers in the corpo-    ment),     ISO     37001    (Anti-Bribery
rate and government segments. This          management), ISO 14001 (environmen-
Managed Service Provider plays an           tal management), and ISO 45001
essential role in delivering the innova-    (Occupational Health and Safety
tive technical services customers need,     Management), PT Remala Abadi Tbk
both in initial installation and ongoing    confirms its commitment to high interna-
maintenance.                                tional standards across various aspects
                                            of its operations.



                                        PT. Remala Abadi Tbk | Annual Report 2023                                              42
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                                                                                                       MANAGEMENT REPORT




HUMAN RESOURCES                              FINANCIAL                                      OPERATIONAL OVERVIEW
MANAGEMENT                                   PERFORMANCE
                                                                                            The financial achievements demon-
PT Remala Abadi Tbk is committed to          In 2023, our revenue increased by              strate that PT Remala Abadi Tbk is a
leading the dynamic and highly competi-      3.66% year-on-year to IDR 217.39               solid and agile organization, capable of
tive Internet Service Provider industry.     billion, with EBITDA growing by 23.46%         adapting to market developments—an
To achieve this vision, the Company is       to IDR 78.60 billion. We achieved a net        essential skill in today's dynamic
enhancing its policies, formalizing them     profit of IDR 26.16 billion, reflecting our    environment. Adaptability has been a
into comprehensive regulations, and          commitment to cost control and profit-         crucial post-pandemic lesson instilled in
fostering a work culture that emphasiz-      ability. Our investments in network            all employees. The Company empha-
es increased productivity and profes-        quality and market diversification have        sizes the need to adapt not only to
sionalism among all employees. This          contributed to our sustained financial         external factors, such as technological
dedication is realized through the           growth.                                        advancements, but also to internal
planning and implementation of various                                                      developments. This dual adaptability is
development programs, including:             CORPORATE                                      key to maintaining the company’s
• Professional Development: This is          GOVERNANCE                                     competitiveness and operational excel-
  strengthened through leadership,                                                          lence in the industry.
  communication, and other soft skills       We are dedicated to upholding integrity,
  training to improve employees'             transparency, and equal treatment for          APPRECIATION
  interpersonal and leadership capabili-     all stakeholders. Our implementation of
  ties.                                      various ISO standards reflects our             In conclusion, we extend our gratitude
• Technical      Skills    Enhancement:      commitment to international best               to the board of directors, management,
  Specialized courses and training are       practices across our operations. Good          employees, business partners, suppli-
  designed to update employees' knowl-       corporate governance ensures sustain-          ers, customers, and shareholders for
  edge and expertise in industry-rele-       able performance and fosters trust and         their unwavering support and trust in
  vant technical areas.                      relationships with our stakeholders.           Remala Abadi. We remain committed to
• Other Training: Various additional                                                        advancing the Company and look
  training programs, such as work safety                                                    forward to continued success together.
  training, business ethics, and personal
  development, are provided to support
  overall employee growth.

The Company's commitment to employ-
ee development extends beyond
training programs. PT Remala Abadi
Tbk implements an Employee Perfor-
mance Management (KPI Manage-
ment) methodology across the organi-
zation to measure individual and group
achievements and development poten-                                             Jakarta, 29 Mei 2024
tial. This evaluation process is a crucial                            For and on behalf of the Board of Directors
reference for providing fair and trans-
parent promotion opportunities, always
prioritizing individual achievement and
dedication.

Beyond programs and evaluations, the
                                                                          RICHARD KARTAWIJAYA
human resource policies at PT Remala
Abadi Tbk are designed to create a                                               Chief Executive Officer
conducive work environment and
motivate employees. The Company
upholds the principle of equality in
promotion opportunities, consistently
basing them on the performance of
each employee and their group.




43                                       PT. Remala Abadi Tbk | Annual Report 2023
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                                                                    MANAGEMENT REPORT




              PERFORMANCE OVERVIEW


The Company’s financial growth was driven by efficient and effective cost con-
trol and management, leading to better profitability. To maintain high-quality
service for customers, PT Remala Abadi Tbk has increased investments in
network quality, ensuring top-notch network installations. Additionally, the com-
pany has diversified its market reach, helping achieve and maintain sales
targets and contributing positively to overall profitability.



                  Net Profit: IDR26.106 billion,
            an increase of 0.11%year-over-year (YoY



   Revenue: IDR292.393 billion, a growth of 3.66% YoY



             CAPEX: IDR49.683 billion, with 61.71%
               allocated for network development


                EBITDA margin increased by 20%,
                    from 30.36% to 36.15%.




                     PT. Remala Abadi Tbk | Annual Report 2023                      44
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                                                                                                   MANAGEMENT REPORT




DIREKSI


Richard Kartawijaya
Chief Executive Officer

Richard Kartawijaya holds a Master's
degree in Business Marketing from Esa
Unggul University, which he completed in
1993 following his earlier Bachelor's degree
in Electrical Engineering from Atma Jaya
Catholic University in 1982.

Since 2022, Richard Kartawijaya has served
as the Chief Executive Officer (CEO) at PT.
Remala Abadi, subsequently assuming the
role of Chief Executive Director in 2023.
Richard's previous roles include serving as
CEO & President Director at PT. Graha
Teknologi Nusantara from 2015 to 2017,
CEO at PT. Link Net, Tbk from 2013 to 2015,
and leadership positions at PT. Ander Cakra
Buana from 2009 to 2013.




Affiliate Relationship
It's important to note that all members of the Company's Board of Directors have no affiliations with fellow members of the Board
of Commissioners, members of the Board of Directors, or the Company's Major Shareholders.




45                                    PT. Remala Abadi Tbk | Annual Report 2023
Page 48
                                               MANAGEMENT REPORT




                         Samuel Adi Mulia
                         Chief Financial Officer

                         Samuel Adi Mulia pursued Finance studies
                         at Trisakti University and later obtained a
                         Bachelor's degree in Accounting from the
                         same university in 1993.

                         Since 2023, Samuel Adi Mulia has served
                         as the Finance Director at PT. Remala
                         Abadi. Prior to this role, Samuel held posi-
                         tions as the Internal Control Manager
                         (Function Strategic & Cost Control Manag-
                         er) at PT. Satria Antaran Prima Tbk from
                         2019 to 2020. He also served as the
                         Finance Director at PT. Klaai Dendan
                         Lestari and PT. Pat Petulai Energi from
                         2017 to 2019, and at PT. Intan Baruprana
                         Finance Tbk from 2012 to 2017.




PT. Remala Abadi Tbk | Annual Report 2023                         46
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                                                                 MANAGEMENT REPORT



     BUSINESS STRATEGY
                                  Remala Abadi's business strategy revolves
                                  around setting the right marketing focus on

                                  •   Market Segmentation: The Company divides
                                      its market into government agencies, corpo-
                                      rations, Small Office/Home Office (SOHO),
                                      and residential segments.
                                  •   Demographics: Remala Abadi targets mar-
                                      kets with high internet needs, particularly
                                      focusing on areas like Jabodetabek and other
                                      locations with high purchasing power.
                                  •   To complement products tailored to these
                                      market segments, the Company will provide
                                      value-added services, such as managed
                                      services tailored for government agencies
                                      and corporate segments.
                                  •   Moreover, Remala Abadi is preparing solu-
                                      tions specifically designed to enhance the
                                      value of the bandwidth sold, aiming for a
                                      strong market positioning.




     SUSTAINABLE STRATEGY
                                Throughout 2023, Remala played an active role in
                                formulating sustainable strategies for each business
                                unit. These strategies encompassed technology and
                                human resource development, operational efficiency,
                                expansion plans, marketing, and enhancing customer
                                satisfaction, all while considering market dynamics
                                and relevant regulations.

                                Recognizing human resources as a key factor in
                                winning the competition and becoming a leading
                                digital telecommunications company, Remala
                                focused on acquiring and developing the best talent
                                through various initiatives, spanning from the recruit-
                                ment process to retention efforts.

                                In 2023, the Board of Directors continued to encour-
                                age the Company to 'Transform for Excellence'. This
                                involved expanding employee capabilities through
                                fostering a High-Performance Culture. Through these
                                initiatives, new ideas were generated to formulate
                                sustainable strategies in every aspect of the business
                                for the future.




47              PT. Remala Abadi Tbk | Annual Report 2023
Page 50

          
Page 51

          
Page 52
                                                                                                      MANAGEMENT REPORT


MARKETING ASPECTS
In marketing its products and services, the Company employs several strategies, including providing high-speed internet. Further-
more, the Company is enhancing its information technology architecture to gain a comprehensive understanding of customers.
This enables the development of sharper and more effective upselling and cross-selling campaigns tailored to the target market.




                                                                                              In addition, to broaden our
                                                                                              customer       base,    we've
                                                                                              introduced the "GEBER"
                                                                                              program, known as "Happy
                                                                                              Together with Nethome." This
                                                                                              program offers a stable and
                                                                                              unlimited internet package to
                                                                                              every Nethome.Id customer
                                                                                              and is proving to be excep-
                                                                                              tionally superior.




  Remala Abadi has various Internet
  service providers, Metor Ethernet,                                                          What's most captivating is
  Data Center, Manage Services, which                                                         that Nethome.id offers an
  are aimed at Corporations, Govern-                                                          installation promo for only
  ment, Hospitality, and Partners. With                                                       IDR     14,000. This      has
  various benefits that can be obtained                                                       garnered a positive response
  and product flexibility that adapts to                                                      from every customer, as the
  customer needs, we will strive to                                                           prices are exceedingly afford-
  provide the best service and product                                                        able for each installation.
  quality.                                                                                    #nethomeAJA




TINJAUAN KE DEPAN
Globally, the economy in 2024 is predict-    the     telecommunications       industry.   cive business environment can also play
ed to experience moderate growth.            Demand        for    telecommunications      a pivotal role in fostering the growth of
Considering the growth trend of above        services, including internet and the         the telecommunications industry as a
5% for seven consecutive quarters, the       solutions we offer, tends to increase in     whole.
resilience of household consumption,         line with robust economic growth. This
and the maintained inflation rate, Indone-   can create new opportunities for compa-      Thus, through readiness to adapt to
sia believes that positive economic          nies to expand their service range,          market changes, alignment with global
growth projections, as indicated by the      enhance market penetration, and bolster      economic trends, and commitment to
Asian Development Bank (ADB) at 5.0%,        competitiveness in the industry.             service quality, PT Remala Abadi Tbk
the International Monetary Fund (IMF) at                                                  can seize the opportunities presented by
5.0%, and the Organization for Economic      As a company operating in the telecom-       economic growth projections from the
Co-operation and Development (OECD)          munications sector, PT Remala Abadi          ADB, IMF, and OECD to continue its
at 5.2% for 2024, could serve as an          Tbk can leverage the potential for           development and emerge as a leader in
encouraging sign for the telecommunica-      positive economic growth by developing       the Indonesian telecommunications
tions industry, including our company, PT    appropriate      marketing    strategies,    industry in 2024.
Remala Abadi Tbk.                            increasing investment in necessary
                                             infrastructure, and continuously innovat-
It is hoped that stable and positive         ing in the products and services offered.
economic growth will positively impact       Government support in creating a condu-



                                        PT. Remala Abadi Tbk | Annual Report 2023                                               50
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                                                                                  MANAGEMENT REPORT


OUR CLIENT




     Universitas Bina Sarana Informatika mereka merupakan salah satu pelanggan layanan dari
     Remala Abadi. Kerjasama ini diharapkan dapat meningkatkan aksesibilitas dan kualitas jaringan
     internet di lingkungan kampus, sehingga dapat mendukung kegiatan belajar mengajar, peneli-
     tian, dan berbagai aktivitas akademik lainnya. Dengan adanya layanan internet yang handal,
     diharapkan seluruh sivitas akademika dapat merasakan manfaatnya dalam mendukung penca-
     paian prestasi dan inovasi di bidang teknologi dan informasi.




     PT Hutama Karya is also a customer of Remala Abadi's high-quality internet services. This strate-
     gic partnership was established to ensure smooth operations and support various projects and
     company activities with fast and reliable internet access. The collaboration aims to boost
     employee productivity, enhance communication between departments, and foster innovation
     and technological development within PT Hutama Karya. With stable and fast internet service,
     PT Hutama Karya is optimistic about achieving its company targets more efficiently and effec-
     tively.




51                               PT. Remala Abadi Tbk | Annual Report 2023
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                                                                               MANAGEMENT REPORT




The Jakarta Health Service is one of the government agencies that subscribes to PT Remala Aba-
di's services. With fast and reliable internet access, it is anticipated that all staff and medical
personnel can leverage digital technology to expedite administrative processes, improve com-
munication between departments, and support the development and implementation of better
health information systems. This collaboration is also expected to aid in disseminating health
information to the public more broadly and swiftly, thereby contributing to the enhancement of
health services in Jakarta.




Jasa Marga subscribes to PT Remala Abadi's services. This collaboration aims to improve connec-
tivity and operational efficiency within the Company. With fast and reliable internet access, the
monitoring process, traffic management, and information services for toll road users are expect-
ed to become more effective and responsive. This initiative also aims to support the develop-
ment of innovative technology and information systems, enabling Jasa Marga to continue
providing the best service to the community.




                             PT. Remala Abadi Tbk | Annual Report 2023                                52
Page 55
                                                                                                     MANAGEMENT REPORT


BOARD OF COMMISSIONERS REPORT




We, the Board of Commissioners, express our appreciation to the Directors who have worked hard to
advance the Company's economic value and build the welfare of its employees or workforce. We assess
that the Board of Directors is very responsive to every business momentum to move quickly to meet
market demand and is always customer oriented.

The Board of Commissioners appreciates the performance of the Board of Directors for the Company's
good financial achievements, and hopes that in the next financial year, the Board of Directors and all
levels of management can consistently maintain this good performance. The Board of Commissioners as
the supervisory board will always monitor and provide strategic and sustainable input, so that economic
scale progress within the Company can grow exponentially.


VIEW ON BUSINESS PROSPECTS                                         Telecommunications as an industrial sector will remain prom-
                                                                   ising, especially considering that opportunities are still very
The Board of Commissioners and Board of Directors are              broad, especially in the regions and outside Java, Indonesia's
optimistic about the growth of business prospects in the           population is still growing, indicating that demand for internet
telecommunications sector, in line with the Government's           and cellular services will continue to increase. The Company
commitment to encourage the pace of digital transformation         supports the telecommunications industry, in particular ensur-
and the high demand of the public for fast and stable data         ing that people get the best internet service via fiber optic,
services. The Company optimistically supports the digitaliza-      which will be accompanied by the expansion of the 4G
tion process of society in Indonesia as the Foundation for a       network throughout the archipelago, as well as the develop-
Golden Indonesia 2045. The Company believes that a govern-         ment of Indonesia's digital ecosystem with the rise of digital
ment is needed that supports digitalization and innovation in      products and services including video on demand and social
the economy in the following years. To support the digitaliza-     media. These things will trigger people to learn, work and
tion process of society in Indonesia, the Indonesian telecom-      improve their reasoning power which will improve Indonesia's
munications industry will have the potential to grow solidly, in   competitiveness regionally and globally. Meanwhile, in the
this way Indonesia will be ready to compete regionally and         business segment, it appears that the Government, large
globally.                                                          companies and MSMEs are increasingly aware of the need to
                                                                   carry out digital transformation. Accelerated by the pandemic
The Indonesian government has also published the Digital           conditions, we are of the view that Information and Communi-
Indonesia Vision 2045, which prioritizes achieving an              cation Technology solutions are increasingly in demand by this
inclusive, empowering and sustainable digital transformation       segment.
for Indonesia. The telecommunications industry plays a
central role, namely building digital infrastructure to support    The various challenges throughout 2023 which strengthen the
digital economic growth. Investments in broadband networks,        Company's internal consolidation can become provisions and
new technologies and digital connectivity play an important        foundations for the next strategic steps, undergoing 2024. The
role in expanding access to internet services and bridging the     Company's Board of Commissioners and Board of Directors
digital divide across Indonesia.                                   believe that the Company will be able to show encouraging
                                                                   positive performance in the following years.



53                                       PT. Remala Abadi Tbk | Annual Report 2023
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                                                                                                  MANAGEMENT REPORT

VIEWS ON THE IMPLEMENTATION OF                                  assists in monitoring the performance of members of the
CORPORATE GOVERNANCE                                            Board of Directors. The supervisory duties carried out by the
                                                                Board of Commissioners and these committees are carried
The Company continues to improve good corporate gover-          out, among other things, through activities such as joint meet-
nance in accordance with government regulations and             ings between the Board of Commissioners and the Board of
international standards in accordance with the ASEAN Corpo-     Directors and the Board of Management, field supervision
rate Governance Scorecard. These national and international     through field visits, and through reports that are considered
standards are the foundation of Remala Abadi's Corporate        strategic and relevant. Through these meetings, the Board of
Governance. To maintain the best practices of Corporate         Commissioners monitors and evaluates the implementation of
Governance, in the view of the Board of Commissioners, the      all strategic policies of the Company, including men about the
implementation of Governance at Remala Abadi throughout         effectiveness of implementing risk management and internal
2023 has succeeded in supporting the achievement of the         control.
company's targets. This can be seen from Remala Abadi's         The Board of Commissioners fully supports the overall imple-
success in carrying out a number of corporate actions, adapt-   mentation and implementation of strict Corporate Governance
ing to market developments and adapting to changes and          in all areas of our business. We believe that the implementa-
technological developments.                                     tion of good corporate governance has been carried out
The Board of Commissioners in carrying out its duties is        effectively within the Company. Without the implementation of
assisted by the Audit Committee and the independent Nomi-       good corporate governance, the things mentioned above will
nation and Remuneration Committee. The Audit Committee          not be possible if compliance with various regulations and the
helps supervise financial information and internal control.     implementation of good corporate governance is not fulfilled.
Meanwhile, the Nomination and Remuneration Committee




           Dear Shareholders,
           We thank God Almighty that by the end of 2023, we were able to exceed opera-
           tional performance expectations. In May 2024, Remala Abadi successfully
           launched its initial public offering (IPO). This initial share launch represents positive
           communication to the public from the Company, demonstrating our commitment
           to supporting the Indonesian government's development efforts through infor-
           mation and communication technology (ICT) networks.

           On this occasion, we would like to express our gratitude to our esteemed share-
           holders. With your support, the Company has become a key provider of telecom-
           munications and internet network services in Indonesia. We continue to make
           progress, contributing to the growth of the Indonesian economy, and providing
           the internet as a tool to promote education, entertainment, and trade, thereby
           advancing the Indonesian nation.

           On behalf of the Board of Commissioners, I express my sincere appreciation to the
           Board of Directors, all levels of management, and employees of the Company for
           their achievements and accomplishments in 2023. We also extend our best wishes
           for the success of the 2024 work plan.


                                                   Jakarta, 29 Mei 2024
                                      For and on behalf of the Board of Commissioners,




                                          Verah Wahyudi Singgih Wong
                                                   President Commissioner




                                       PT. Remala Abadi Tbk | Annual Report 2023                                            54
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                                                                                                 MANAGEMENT REPORT


BOARD OF COMMISSIONERS




Verah Wahyudi Singgih Wong
President Commissioner

Verah Wahyudi Singgih Wong pursued
Financial Management studies and earned a
Bachelor's degree in Financial Management
from the University of Surabaya in 2001.

Verah Wahyudi Singgih Wong currently
holds the position of President Commission-
er of the company, where Verah provides
leadership with strategic vision and excep-
tional wisdom. Previously, Verah served as
the Finance Director at PT. Remala Abadi for
16 years, from 2006 to 2022. Prior to that
role, Verah held the position of Finance Con-
troller at PT. Wing Surya Surabaya from
2002 to 2005.




Affiliate Relations
It's worth noting that all members of the Company's Board of Commissioners do not have affiliations with fellow members of the
Board of Commissioners or the Company's Major Shareholders.



55                                    PT. Remala Abadi Tbk | Annual Report 2023
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                                              MANAGEMENT REPORT




                       Alamsyah Saragih
                       Independent Commissioner

                       Ahmad Alamsyah Saragih, S.E., pursued his
                       academic studies on Economics at Padjadja-
                       ran University, where he earned a Bachelor's
                       degree in Economics in 1992.

                       Currently, Ahmad Alamsyah Saragih serves
                       as an Independent Commissioner of the
                       Company. In addition to this role, Alamsyah
                       has been actively involved as a GCG Advisor
                       in the INDONESIAN BATTERY INDUSTRY
                       since 2021.

                       Previously, Alamsyah held various significant
                       positions in the OMBUDSMAN OF THE
                       REPUBLIC OF INDONESIA from 2016 to
                       2021, contributing in roles such as Member of
                       the Economic Sector and Member of the
                       Examination Sector Special. Prior to that,
                       Alamsyah served in the Central Information
                       Commission of the Republic of Indonesia
                       from 2009 to 2013, where he held positions
                       as Chairman and Member. Alamsyah also
                       gained valuable experience as a Local Gov-
                       ernance Specialist at the World Bank Jakarta
                       from 2002 to 2007.




PT. Remala Abadi Tbk | Annual Report 2023                        56
Page 59
 CORPORATE
 GOVERNANCE




57    PT. Remala Abadi Tbk | Annual Report 2023
Page 60
PT. Remala Abadi Tbk | Annual Report 2023   58
Page 61
                                                                                              CORPORATE GOVERNANCE




CORPORATE GOVERNANCE
The implementation of corporate governance in a company is very important as a process for
maintaining the long-term sustainability of the company's business, which prioritizes the interests
of shareholders and stakeholders. Considering the importance of corporate governance, the
Company views the need to implement good corporate governance (GCG) practices.



PENERAPAN PRINSIP TATA KELOLA PERUSAHAAN YANG BAIK




                  TRANSPARENCY
                  by prioritizing transparency. It strives to maintain objectivity in carrying out its business activities by
                  providing relevant and timely information to shareholders and stakeholders. The company ensures
                  that information is clear, accurate, and easily accessible through channels such as the Company's
                  official website (www.remala.co.id).




                  ACCOUNTABILITY
                  The role of accountability within the Company serves as a form of responsibility towards sharehold-
                  ers and stakeholders. This ensures that the Company's management is conducted correctly and in
                  line with the company's interests, while also considering those of shareholders and stakeholders.
                  Committees and work units oversee and control the Company's internal affairs, reporting directly to
                  the board of directors. Management is obligated to be accountable for decisions and performance
                  aligned with the company's vision, mission, values, strategy, and business targets.




59                                 PT. Remala Abadi Tbk | Annual Report 2023
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                                                                            CORPORATE GOVERNANCE




RESPONSIBILITY
Every company conducting business activities has the responsibility to operate in accordance with
applicable laws, regulations, ethical values, and healthy business practices. Compliance with
legislation benefits not only customers but also ensures smooth business operations, contributing
to long-term business continuity. The Company guarantees adherence to laws and regulations,
prudently fulfills obligations to the government, actively collaborates for mutual benefit, and endeav-
ors to contribute meaningfully to society as part of its social responsibility.




INDEPENDENCY
The Company ensures that its management is conducted independently, professionally, and free
from conflicts of interest, external influence, or pressure contrary to laws, regulations, ethical
values, and healthy business practices. This approach ensures objective decision-making and aims
to achieve optimal outcomes for shareholders, stakeholders, and employees. Independence is
deemed essential for the Company to fulfill its duties properly in accordance with applicable laws
and GCG principles.




FAIRNESS AND EQUALITY
The principles of fairness and equality are applied by the Company to all parties with an interest in
the Company. This includes fair and equal treatment in fulfilling the rights of stakeholders as per
agreements, laws, regulations, ethical values, and standards of healthy business practices. The
Company ensures interested parties can exercise their rights in accordance with applicable laws
and regulations.




                PT. Remala Abadi Tbk | Annual Report 2023                                                 60
Page 63
                                                                                               CORPORATE GOVERNANCE




GUIDE TO GOOD CORPORATE GOVERNANCE
The Company is committed to ensuring and improving good corporate governance based on
principles recognized by the government and globally. The main principles in the Corporate
Governance guidelines implemented in PT Remala Abadi Tbk. include:



     THE MAIN PRINCIPLES IN                                        •   Openness: PT Remala Abadi Tbk. must be open to
     THE CORPORATE GOVERNANCE                                          communication and feedback from stakeholders.
                                                                   •   Independence: PT Remala Abadi Tbk. must maintain
     •   Transparency: PT Remala Abadi Tbk. must be open               independence from external influence.
         and transparent in all activities.                        •   Responsibility: PT Remala Abadi Tbk. must be
     •   Accountability: PT Remala Abadi Tbk. must be                  responsible for social and environmental impacts.
         responsible for all actions and decisions to stakehold-   •   Sustainability: PT Remala Abadi Tbk. must be commit-
         ers.                                                          ted to achieving sustainable growth.
     •   Justice: PT Remala Abadi Tbk. must treat all stake-
         holders fairly and without discrimination.




     CORPORATE GOVERNANCE                                              provides advice.
     STRUCTURE                                                     •   Board of Directors: Responsible for
                                                                       day-to-day operations.
     PT Remala Abadi Tbk's corporate gover-                        •   Audit Committee: Oversees the audit
     nance structure must consist of the following                     process and ensures compliance.
     elements:                                                     •   Corporate Secretary: Ensures smooth
     • General Meeting of Shareholders                                 operation and compliance with regula-
        (GMS): The GMS is the highest body of                          tions.
        the company, tasked with supervising                       •   Internal Audit Unit: Ensures compliance,
        and controlling the company's opera-                           effective risk management, and goal
        tions.                                                         achievement.
     • Board of Commissioners: The Board of                        •   Independent Auditor: External auditor
        Commissioners oversees the perfor-                             appointed by the GMS to audit financial
        mance of the Board of Directors and                            reports



     PRACTICES GCG                                                     lations.
                                                                   •   Performance Evaluation: Periodically
     •   Risk Management: Maintain an effective                        evaluate the performance of Directors,
         risk management system to identify,                           Commissioners, and the Management
         assess, and manage risks.                                     Team.
     •   Compliance: Comply with all applicable                    •   Providing Remuneration: Determine
         rules and regulations in the telecommu-                       remuneration for directors, commission-
         nications industry.                                           ers, and the Management Team fairly
     •   Information Disclosure: Openly and                            and transparently.
         transparently disclose all relevant infor-                •   Corruption Prevention: Implement an
         mation to stakeholders.                                       effective corruption prevention system.
     •   Organizing GMS: Hold GMS periodically
         and in accordance with applicable regu-



61                                            PT. Remala Abadi Tbk | Annual Report 2023
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                                                                                                     CORPORATE GOVERNANCE

CODE OF ETHICS                                   considering the impact on various            ples of Good Corporate Governance.
AND PROFESSIONAL                                 stakeholders.
RESPONSIBILITY                                                                                General Provisions for Handling Viola-
                                                 The Company's Code of Ethics and             tion Complaints
The Code of Ethics serves as the prima-          professional      responsibilities    are
ry guide for every decision and action           integrated into daily business practices,    The Company is obligated to accept
taken by the Company. Key values in              including     resource     management,       complaints of violations from both
the Code of Ethics include integrity,            relationships    with   suppliers    and     internal and external parties, regardless
honesty, sustainability, justice, social         partners, and interactions with employ-      of whether the reporters choose to
responsibility, business ethics, and             ees and customers, characterized by          disclose their identities. To facilitate this
compliance with policies and regula-             respect and integrity. The Company           process, the Company provides two
tions.                                           remains committed to strengthening a         complaint management channels: the
                                                 corporate culture that prioritizes these     Google PT Complaint Form "Remala
Objectives of Implementing the Code of           values, while continuously enhancing         Abadi" and via email (remalaabadi-
Ethics:                                          standards in sustainability, transparen-     .wbs@remala.co.id). The form route is
•    Provide guidance for all manage-            cy, and accountability.                      designated for internal complaints, while
     ment and employees in their                                                              the email route is intended for external
     behavior and interactions with              Furthermore, the Company reinforces          complaints.
     stakeholders.                               its ethical foundation and professional
•    Maintain the Company's commit-              responsibility by cultivating stronger       Complaint Handling Process
     ment to the principles of Good              relationships with all stakeholders, while   1.   The Internal Audit Team, as the
     Corporate Governance and create             striving for sustainable growth and               Manager of Violation Complaints,
     a conducive work environment.               positive long-term impacts.                       verifies incoming reports based on
•    iInstill understanding and imple-                                                             the team's records. Within 30
     ment ethical behavior among                                                                   working days, the Internal Audit
     employees and management to                 VIOLATION                                         Team decides whether an investi-
     ensure compliance with legal and            COMPLAINT                                         gation into the violation complaint is
     ethical provisions.                         MANAGEMENT POLICY                                 necessary, with the possibility of
•    Strengthen      understanding    of                                                           extending this period by a
     company values among stakehold-             Violation Complaints Policy                       maximum of 30 working days.
     ers and create a positive image of          The Company consistently endeavors           2.   If the verification results demon-
     the Company.                                to ensure the effectiveness of existing           strate that the complaint lacks
•    Provide guidance in making ethical          GCG and internal control systems in               evidence and is not valid, it will not
     business decisions and considering          mitigating the risk of violations. Conse-         proceed further.
     moral and legal consequences.               quently, there arises a necessity for a      3.   In cases where verification reveals
                                                 Violation     Complaint      Management           indications of a violation supported
The implementation of the Code of                Policy, serving as a platform for witness-        by     sufficient    evidence,     the
Ethics is expected to cultivate a culture        es to report suspected violations.                complaint proceeds to the investi-
of ethical behavior among employees,             Complaints        obtained         through        gation stage.
both in fulfilling duties and responsibili-      whistleblowing mechanisms warrant            4.   Complaints involving individual
ties and in making business decisions.           attention and subsequent follow-up                employees that require investiga-
This fosters high integrity, contributing        actions, including the imposition of              tion are handled by the Internal
to increased productivity and positive           appropriate penalties, to serve as a              Audit Team at the Board of Direc-
performance. In daily operations, the            deterrent for potential violators.                tors level.
Company ensures the serious imple-                                                            5.   Complaints involving the Board of
mentation of the Code of Ethics through          The Violation Complaint Management                Directors, Board of Commission-
regular employee training and by                 Policy serves as a foundational guide-            ers, supporting organs of the Board
reinforcing internal procedures for              line in addressing Violation Complaints           of Commissioners, and Heads of
reporting ethical violations.                    from Stakeholders, ensuring the imple-            Work Units requiring investigation
                                                 mentation of an efficient violation               are managed by the Internal Audit
The Company's identity is rooted in              complaint resolution mechanism within             Team in collaboration with the
professional responsibility, extending           a reasonable timeframe. The primary               Board of Commissioners.
beyond customers and shareholders to             objective is to identify and rectify any     6.   Upon confirmation of violators
encompass      employees,      business          issues within the Company that deviate            based on investigation results,
partners, and society at large. The              from the applicable Code of Ethics.               appropriate actions are taken in
Company endeavors to fulfill its obliga-                                                           accordance with applicable regula-
tions by positively contributing to the          This Violation Complaint Management               tions. If the investigation establish-
social and environmental landscape in            Policy applies to both management and             es disciplinary violations by an
which it operates. Consequently, the             employees       across   all    Company           employee, a disciplinary hearing is
Company's business activities prioritize         business units, guiding them in their             conducted according to regula-
sustainability and shared prosperity,            daily duties in alignment with the princi-        tions. If violations lead to criminal




                                              PT. Remala Abadi Tbk | Annual Report 2023                                                 62
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                                                                                                    CORPORATE GOVERNANCE

     acts, the legal process is pursued         dia solutions. This certification enhanc-        has an effective operational control
     with law enforcement agencies, in          es customer trust and bolsters the               process to ensure services run in
     coordination with the Board of             Company's credibility in the market-             accordance      with    established
     Directors or designated officials.         place.                                           standards. This includes Service
7.   If the investigation reveals that                                                           Performance      Monitoring     that
     employees       have       committed       ISO 20000-1:2018 Certification                   continuously tracks service perfor-
     violations leading to criminal acts,                                                        mance against KPIs to ensure
     the applicable legal process will be       The     Company         obtained     ISO         service levels are maintained; and
     pursued by law enforcement agen-           20000-1:2018 certification in 2023 from          Change Management in services or
     cies. This action will be coordinated      ACS Indonesia. This certification                service components in a systematic
     by the Board of Directors or other         acknowledges the Company's Informa-              manner to minimize disruption.
     authorized officials responsible for       tion Technology Service Management           •   Incident and Service Request
     handling the case.                         System within the IT & NOC Division.             Management: Efficiently handling
8.   The entire violation complaint             The certification not only enhances              incidents and service requests to
     process is overseen and adminis-           operational efficiency but also mitigates        restore normal service operation as
     tered by the Internal Audit Team.          risks and elevates customer satisfac-            quickly as possible and meet
                                                tion. By embracing this international            customer needs.
Follow-up Monitoring                            standard, the Company is poised to           •   Service Evaluation and Improve-
1.   Follow-up monitoring of violation          adapt its internet services to evolving          ment: The Company regularly
     complaints is conducted by the             market demands and the dynamic                   evaluates service performance by
     Internal Audit Team.                       landscape of information technology.             conducting audits, management
2.   The Internal Audit Team is respon-                                                          reviews,      and     performance
     sible for informing the Board of           Through the implementation of the ISO            measurements. Evaluation results
     Directors and/or Board of Commis-          20000-1:2018 management system in                are used to identify opportunities
     sioners about received complaints,         the context of service management, the           for service improvement and imple-
     ongoing      investigations,   and         Company strives to create a system of            ment necessary corrective actions.
     resolved cases, as needed.                 policies and procedures as follows:
                                                •    Determination of Service Policy:        By consistently implementing the princi-
Protection and Appreciation                          The Company establishes a clear         ples and requirements of ISO
The Company is committed to providing                and measurable service policy,          20000-1:2018, the Company can
protection for whistleblowers while                  which includes a commitment to          increase efficiency, quality, and custom-
ensuring the confidentiality of both the             providing high-quality services to      er satisfaction in providing IT services.
reporter and the reported party until                customers. This policy must be
further evidence is provided. Additional-            adapted to customer needs and           Important Legal Cases
ly, the Company may offer appreciation               expectations.
to whistleblowers in accordance with            •    Service Planning: The Company           The Company consistently endeavors
Directors' policy for reporting proven               plans services by considering           to avoid any actions that might result in
violations, thereby safeguarding the                 customer needs, service require-        sanctions, which could materially impact
Company's assets and finances.                       ments, and required resources.          the Company and its shareholders. As
                                                     This planning includes Risk Identifi-   of 2024, neither the Company, its
QUALITY           MANAGEMENT                         cation to recognize potential risks     subsidiaries, nor the Board of Commis-
SYSTEM                                               that could impact service delivery      sioners and Directors of the Company
                                                     and devising strategies to mitigate     and its subsidiaries are involved in any
The Company has demonstrated its                     them;     Service     Performance       legal proceedings. This includes any
dedication to service quality by achiev-             Measurement to establish key            capacity    as     plaintiff, defendant,
ing compliance with international                    performance indicators (KPIs) to        applicant, respondent, or other, in
standards through the International                  monitor and assess service quality;     cases, disputes, or disputes that could
Organization for Standardization (ISO)               and Service Improvement Planning        materially affect the Company’s and
accreditation facilitated by ACS Indone-             to develop action plans to enhance      subsidiaries’ activities and business
sia. On October 25, 2023, the Company                service performance based on            continuity. Furthermore, these entities
was certified, acknowledging its IT                  assessment results and customer         are not involved in any legal proceed-
Service Management System's adher-                   feedback.                               ings that would impact the plans for this
ence to ISO 20000-1:2018 standards.             •    Service Design and Transition: The      Public Offering.
This recognition encompasses various                 Company designs services to meet
Internet services provided by the                    customer requirements and estab-        These cases encompass civil, criminal,
Company, including Broadband internet                lished performance criteria. The        bankruptcy, state administration, indus-
services, Service Local Link, Managed                service transition process must         trial relations, arbitration, tax, monopoly
Services (IP CAM settings, VOIP, WiFi                also be well managed to minimize        and/or business competition cases,
Device), Server Colocation, and                      negative impacts when the service       health, bankruptcy, or any other cases
Business-to-Business       Fiber   Optic             is launched.                            within judicial institutions, arbitration,
Connectivity/Installation, and multime-         •    Operational Control: The Company        and/or other dispute resolution institu-




63                                           PT. Remala Abadi Tbk | Annual Report 2023
Page 66
                                                                                                       CORPORATE GOVERNANCE

tions within the Republic of Indonesia.           The strategic policies include the Whis-          geographic presence.
This includes, but is not limited to,             tle Blowing System (WBS), Investiga-
District Courts, High Courts, Supreme             tion, and Gratification Control Proce-        Bribery and Gratification Anti-Cor-
Courts, Commercial Courts, State                  dures. These aim to ensure proper             ruption Program
Administrative     Courts,     Industrial         reporting and investigation of bribery        To fulfill the commitments and principles
Relations Courts, the Indonesian                  through the WBS channel and effective         of this policy, the Company has devel-
National Arbitration Board, and/or the            handling of gratification to uphold integ-    oped a program or procedure consisting
Indonesian Capital Market Arbitration             rity and preserve the Company's reputa-       of the following components:
Board, as well as any institutions                tion.                                         Whistleblowing System and Investiga-
outside the Republic of Indonesia.                                                              tion Procedures
                                                  Policy Scope                                  1. The Board of Commissioners
Handling Deviations from Company                  This policy applies to the Company and             encourages internal personnel and
Regulations                                       all stakeholders, including external               partners to report any indications of
Handling of deviations from Company               parties, Directors, the Board of Commis-           bribery or other fraud, whether
Regulations and the Code of Ethics and            sioners,    Management,       Employees            observed directly or based on
Professional Responsibility involves              (permanent, contract, and temporary),              information from others.
in-depth investigations based on factual          and work partners, covering all business      2. To encourage reporting, the Board
evidence. Decisions are made consider-            activities.                                        of Commissioners ensures safety
ing the consequences of the action, the                                                              and confidentiality for whistleblow-
degree of intentionality, and the motive          General Principles                                 ers unless disclosure is ordered by
for the action. The Board of Directors            The principles outlined in this policy             the court.
decides on the type of sanction, adjust-          stem from the Company's commitment            3. A WBS channel is provided to
ed to the severity of the deviation and           to integrity and sustainable business              facilitate reporting. Reporters may
the employee’s rank or position within            practices. This policy requires the                also report directly to uninvolved
the organizational hierarchy.                     Company to adhere consistently to the              officials, including the Company
                                                  values of transparency, accountability,            Owner, via email: remalaabadi-
Sanctions for employees can include:              responsibility, integrity, and fairness            .wbs@remala.id.
•  Verbal warnings                                throughout all business activities and        4. Reporters may remain anonymous
•  Warning letters (I, II, III)                   jurisdictions. It fosters a culture where          and must provide logically accept-
•  Denial of salary increases                     corruption, bribery, and gratification are         able preliminary evidence, avoiding
•  Denial of rank or bonus increments             never acceptable. The following are the            reports based on rumors.
•  Termination of employment (PHK)                principles of this policy:                    5. Fraud and bribery are serious
                                                  1. Zero Tolerance for Corruption The               disciplinary violations with potential
For layoffs specifically, after obtaining              Company has no tolerance for acts             dismissal (PHK) and possible legal
approval from the Board of Directors,                  of corruption, bribery, and gratifica-        action. Further investigations will
the process involves submitting a permit               tion, prohibiting all forms, whether          be conducted unless the perpetra-
application to the Department of                       direct or indirect. The Company will          tor is caught red-handed or there is
Manpower in accordance with the                        not tolerate employees or third               clear video/document evidence.
Employment Law of the Republic of                      parties involved in acts of bribery      6. The Investigation Team must be
Indonesia. This process ensures that all               and corruption.                               free from any conflict of interest
actions are compliant with national labor         2. Commitment to Combat Bribery,                   related to the case.
regulations and uphold the Company's                   Gratification, and Corruption The        7. The Internal Audit Team identifies
standards for ethical and professional                 Company is committed to proac-                reports of suspected bribery,
conduct.                                               tively fighting corruption, bribery,          collaborates with Top Management
                                                       and graft. It aims to be an industry          to determine the investigator and
                                                       role model by implementing the                necessary resources, and ensures
ANTI-CORRUPTION,                                       best anti-bribery standards and               objectivity.
BRIBERY, AND                                           practices, investing in employee         8. Internal investigators document
GRATIFICATION POLICY                                   training and awareness, and                   facts/evidence and report findings
                                                       preventing bribery and corruption             to both the Internal Audit Team and
Introduction                                           by third parties, including down the          Top Management, which deter-
In carrying out its business activities, the           supply chain. The Company                     mines the follow-up actions.
Company consistently upholds healthy                   reserves the right to refrain from       9. Internal Audit and Top Management
and good corporate governance. This                    relationships with third parties if           evaluate the investigation process
commitment          positively     impacts             there is any doubt about their integ-         and handling of bribery, ensuring
business     progress       and    ensures             rity.                                         documentation is complete and
long-term business sustainability. To             3. Commitment to Compliance with                   confidential.
realize these goals, the Company has                   Laws and Regulations The Compa-          10. Investigation results may confirm or
developed various strategic policies to                ny is committed to complying with             disprove violations or lead to the
maintain management order within its                   laws and regulations in all opera-            discovery of additional cases.
organization.                                          tional areas, given its broad            11. If the investigation confirms a loss




                                               PT. Remala Abadi Tbk | Annual Report 2023                                                64
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                                                                                                  CORPORATE GOVERNANCE




    to the company of at least IDR 100,000,000, the internal investigation report will be forwarded to an external investigative
    agency.
12. Top Management will impose sanctions for violations, including:
    a. Strong Warning Letter
    b. Termination of employment
    c. Fines of at least twice the proceeds of corruption
    d. Criminal prosecution or imprisonment

Gratification Control Procedures
1. The Company prohibits giving to external parties, except for reasonable service-related facilities, such as lodging, transporta-
    tion, and meals during Company services.
2. Personnel are prohibited from accepting gratification as defined by the Company.
3. Prohibited gratuities include money or goods valued at Rp. 10,000,000 or more from business-related parties, which must be
    reported to the Whistle-Blowing System Manager.
4. Gratuities not in the prohibited category and other reasonable gifts must still be reported to the Anti-Bribery Compliance Func-
    tion via Google form: https://bit.ly/gratificationremala.
5. Personnel must refuse prohibited gratuities given directly by the giver. Gifts received without prior notification must be reported
    and submitted to Internal Audit.




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                                                                  CORPORATE GOVERNANCE




CORPORATE
GOVERNANCE
STRUCTURE



                                       RUPS




                                                        Board of
      Director                                        Commissioners




 President Director             Nomination &
      & CEO                     Remuneration                           Audit Committee
                                 Committee




  The Company           Corporate
    Directors           Secretary




                      Internal Audit




                      PT. Remala Abadi Tbk | Annual Report 2023                          66
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                                                                       CORPORATE GOVERNANCE




 STRUCTURE
 ORGANIZATION
                                                                              RUPS




                                                                     BOARD OF COMMISSIONERS




                                                                       BOARD OF DIRECTOR



                                          Corporate
                                          Secretary




                                           HR, GA & Legal                  Nethome GM
         Assistant CTO
                                             Manager


        New Roll Out GM                 GM ICT & Technology                Tachyon GM


                                                                             Building &
         NOC Manager                                                       Area Manager


     Operation & Maintenance                                               Government
             Manager                                                        Manager


       Network Planning &                                                  Partner Dev’t
     Standardization Manager                                                Manager


          MSP Manager



        Point of Presence




67                       PT. Remala Abadi Tbk | Annual Report 2023
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                                                        CORPORATE GOVERNANCE




     AUDIT
   COMMITEE


   NOMINASI
& REMUNERASI
  COMMITEE


     AUDIT
   INTERNAL




  CRO Manager               Finance Manager



Marketing Manager         Accounting Manager




            PT. Remala Abadi Tbk | Annual Report 2023                     68
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                                                                                                      CORPORATE GOVERNANCE


 General Meeting of Shareholders (GMS)


       Organizing RUPS

             5 working days *                                21 day **




        01                                          03                                           05
Informing the OJK                             GMS invitation                             Announcement on
 concerning GMS
     agenda;                  02                                             04           Minutes of GMS              06
                       GMS announce-                                                                            Minutes of GMS
                                                                             4GMS
                           ment                                                                                submitted to OJK




                                       14 day **                                    2 working days
                                                                                                    30 day




 •     THE AUTHORITY OF THE GMS, AS                                      •     than 50% of the Company's net assets in one or more
       REGULATED IN THE COMPANY'S ARTI-                                        transactions, whether related to each other or not.
       CLES OF ASSOCIATION, INCLUDES:                                    •     Approving the Company's corporate actions in accor-
 •                                                                             dance with applicable laws and regulations.
 •     Approving the annual report and the supervisory duties            •     1Approving material transactions and conflicts of interest
       report of the Board of Commissioners for the relevant                   based on the limits of authority regulated in statutory
       financial year.                                                         regulations.
 •     Approving the use of Company profits.
 •     Ratifying the financial report, including the balance sheet       THE COMPANY'S EFFORTS TO ENCOUR-
       at the end of the financial year and the profit and loss          AGE SHAREHOLDER PARTICIPATION
       statement for the financial year.
 •     Appointing or authorizing the Board of Commissioners to           PT Remala Abadi Tbk provides access for Shareholders to
       appoint a Public Accounting Firm for the current year.            obtain information and materials related to the General
 •     Appointing and/or dismissing members of the Company's             Meeting of Shareholders (GMS) on the Company's website.
       Board of Directors and Board of Commissioners.                    Materials related to the agenda to be discussed at the GMS
 •     Determining remuneration for members of the Board of              are also available at the Company's office during working
       Directors and Board of Commissioners.                             hours from the date of the Invitation to the GMS. The
 •     Approving additional authorized capital and/or paid-up            implementation of e-GMS allows shareholders to participate
       and issued capital.                                               virtually, eliminating the limitations of attending the GMS in
 •     Ratifying changes to the Company's Articles of Associa-           person.
       tion.
 •     Approving mergers, consolidations, takeovers, separa-
       tions, bankruptcy petitions, extensions of the time of
       establishment, and dissolution of the Company.
 •     Approving the transfer, relinquishment of rights, or use as
       collateral for all or most of the debt with a value of more




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                                                                                            CORPORATE GOVERNANCE

GENERAL REQUIREMENTS                                             •   Discussion of Meeting Agenda, After discussing the
                                                                     Meeting agenda, the Chair or an appointed party may
The general provisions and procedures for holding a GMS              address written questions, opinions, proposals, or
refer to the Financial Services Authority Regulation No.             suggestions related to the agenda from Shareholders or
15/POJK.04/2020 concerning the Plans and Implementation              their proxies, using the following mechanisms:
of the General Meeting of Shareholders of Public Companies           ▪    Attendees can raise their hand and write on the
("POJK 15/2020"). The mechanism for exercising voting rights              sheet provided by the Meeting officer.
by shareholders at the GMS or EGMS is regulated to allow             ▪    Questions, opinions, proposals, or suggestions are
voting directly, through proxies, or electronically.                      limited to three times per agenda item and must be
                                                                          directly related to the agenda being discussed.
The GMS must be held no later than six months after the          •   Decision-Making, Decisions are made by deliberation to
financial year ends. At the GMS, the Board of Commissioners          reach consensus. If consensus is not achieved,
and Directors present and report the following:                      decisions are made by voting.
1. Annual Report                                                 •   Voting Rights, Each share gives the holder one vote.
2. Recommendations for the use of the Company's net profit           Shareholders with more than one share vote only once,
3. Appointment of a Public Accounting Firm to audit the              representing all their shares.
     Company's financial statements for the current financial    •   Latecomers, Shareholders or proxies arriving after
     year                                                            registration closes, even if the Meeting has not started,
4. Determination of the Company's Board of Commission-               cannot ask questions or vote.
     ers and Directors, including honorarium, allowances,        •   Minutes of Meeting, Minutes of the Meeting are docu-
     salaries, bonuses, and other remuneration                       mented in a Deed of Meeting Minutes drawn up by a
5. Other matters requiring shareholder approval for the              Notary.
     benefit of the Company                                      •   Validity of Minutes, The Deed of Meeting Minutes serves
                                                                     as valid evidence for all Shareholders and third parties.
Rules for the General Meeting of Shareholders and
Decision-Making Process
•   Language and Chairing of the Meeting, Meetings are
    conducted in Indonesian and chaired by a member of
    the Company's Board of Commissioners.
•   Physical Meeting Arrangements, Meetings are held
    physically with limitations on the number of participants
    allowed in the room.
•   Proof of Authority, The Chair of the Meeting has the right
    to request proof of authority from those attending.
•   Eligibility to Attend, Only Shareholders or their autho-
    rized Proxies registered in the Company's Register of
    Shareholders up to one working day before the invitation
    to the Meeting are entitled to attend or be represented.




      AGENDA RUPS

          No     Agenda

           1     Approval of the Annual Report and Annual Financial Report for the financial year
                 ending December 31, 2023.

           2     Determination of the Company's profit and loss for the financial year ending
                 December 31, 2023.

           3     Determination of the amount of salary and other allowances for members of the
                 Board of Directors and members of the Board of Commissioners of the Company.

           4     Approval of the Appointment of a Public Accountant and/or Public Accounting
                 Firm.

           5     Accountability for the realization and approval of changes in the use of proceeds
                 from the Public Offering.


                                        PT. Remala Abadi Tbk | Annual Report 2023                                          70
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                                                                             CORPORATE GOVERNANCE




BOARD OF COMMISSIONERS
     The Board of Commissioners, in accordance with applicable laws and regulations,
     represents Shareholders to oversee the implementation of company policies and strategies
     carried out by the Board of Directors. They also provide direction and advice to the Board of
     Directors in managing the Company with good faith, care, and responsibility, aiming to
     strengthen the Company's image in the eyes of the public and Shareholders.


     LEGAL BASIS
     1. Law No. 40 of 2007 concerning Limited Liability Companies.
     2. OJK Regulation No. 33/POJK.04/2014 concerning Directors and Board of Commission-
        ers of Issuers or Public Companies.
     3. Company Articles of Association.


     BOARD OF COMMISSIONERS CHARTER
     The Company has a Work Code of Conduct and Code of Ethics for the Board of Commis-
     sioners, also known as the Board Manual. This manual serves as a guide for Board mem-
     bers to maintain professional, productive working relationships and to efficiently carry out
     their duties. It includes explanations regarding:
     1. Criteria and composition.
     2. Duties and responsibilities.
     3. Work ethics, including regulations on conflicts of interest, confidentiality of Company doc-
        uments, and compliance with applicable regulations.
     4. Procedures for holding meetings, including meeting quorum and voting rights.
     5. Remuneration.
     6. Division of authority


     MEMBERSHIP AND TERM OF SERVICE
     The requirements for membership of the Board of Commissioners are as follows:
     1. Good morals, ethics, and integrity.




71                               PT. Remala Abadi Tbk | Annual Report 2023
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                                                                           CORPORATE GOVERNANCE




2. Capable of legal actions.
3. Within the five years before appointment and during tenure:
   •   Never declared bankruptcy.
   •   Never been found guilty of causing a company to be declared bankrupt while serving as a
       member of the Board of Directors or the Board of Commissioners.
   •   Never been convicted of a criminal offense detrimental to state finances or related to the
       financial sector.
   •   Never served as a member of the Board of Directors or the Board of Commissioners while
       committing the above offenses.


Members of the Board of Commissioners are appointed and dismissed at the General Meeting of
Shareholders for a period until the closing of the third Annual General Meeting of Shareholders
since their appointment. The position ends if they resign, no longer meet the requirements, die, or
are dismissed based on a GMS decision.


BOARD OF COMMISSIONERS COMPOSITION
As of December 31, 2024, the Company's Board of Commissioners consists of 2 (two) members,
one is the President Commissioner and the other is the Independent Commissioner, as follows:




                               Nama                              Jabatan

                    Verah Wahyudi Wong               President Commissioner

                    Alamsyah Saragih               Independent Commissioner




                               PT. Remala Abadi Tbk | Annual Report 2023                        72
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                                                                          CORPORATE GOVERNANCE


BOARD OF DIRECTORS
The Board of Directors collectively holds authority and responsibility for managing the Company
in alignment with its aims, objectives, vision, and mission as stipulated in the articles of associa-
tion. They operate under the mandate of the shareholders and stakeholders, managing the
Company's operations, implementing necessary actions and policies, and ensuring efficient
operation while adhering to applicable laws and regulations.

LEGAL BASIS
1. Law No. 40 of 2007 concerning Limited Liability Companies.
2. OJK Regulation No. 33/POJK.04/2014 concerning Directors and Board of Commissioners of
   Issuers or Public Companies.
3. Company Articles of Association
4. Board Manual & Company Code of Ethics

WORK GUIDELINES AND CODE OF ETHICS FOR BOARD OF DIRECTORS
The Company has established a Work Code of Conduct and Code of Ethics for the Board of
Directors, known as the Board Manual. This manual serves as a guide for Board members to
maintain professional, productive working relationships and to efficiently perform their duties.
The Board Manual includes explanations regarding, among other things:
1. Criteria and Composition
2. Duties and Responsibilities
3. Work Ethics, which include:
   • Regulations regarding conflicts of interest
   • Confidentiality of Company documents
   • Compliance with applicable regulations
4. Procedures for Holding Meetings, which encompass:
   • Meeting quorum
   • Voting rights
5. Remuneration
6. Division of Authority

BOARD OF DIRECTORS DUTIES AND RESPONSIBILITIES
1. Approval, Registration, and Confirmation of the Articles of Association, Submit the Articles
   of Association and any amendments to the Ministry of Law and Human Rights for approval
   or registration and to the State Printing House for confirmation.
2. Share Administration, Prepare and maintain (or appoint a Securities Administration Agency
   to manage) share administration records, including:
   • Names and addresses of all Shareholders
   • Number, date, and details of share acquisitions or joint stock certificates
   • Name and address of the company's share guarantor
   • Other r elevant information
3. Special Share Administration, Prepare and maintain special records regarding share own-
   ership and business relationships of the Directors, Board of Commissioners, and their
   respective families within the company, including the dates shares were acquired.
4. Company Documents, Maintain all important lists, administrative records, and company
   documents, including decisions, minutes of the GMS, minutes of meetings of the Board of
   Directors, and minutes of meetings of the Board of Commissioners within the company's
   domicile. Provide access to Shareholders in accordance with the law.
5. Company Accounts, Maintain all company accounts and financial documents in accor-
   dance with accounting standards, and provide access to Shareholders as stipulated by law



73                            PT. Remala Abadi Tbk | Annual Report 2023
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                                                                                       CORPORATE GOVERNANCE


    and the Articles of Association.
6. Integrated Annual Report, Prepare an annual report within 5 months from the end of the
    financial year, which includes:
    • Financial statements, including financial data for the latest and previous financial years
        (profit and loss statements, cash flows, changes in equity, and other related data)
    • Company activity reports
    • Corporate social responsibility report
    • Events impacting company activities
    • Board of Commissioners' report on supervisory duties from the previous financial year
    • Names of all members of the Board of Directors and Board of Commissioners
    • Salaries or honorariums given to members of the Board of Commissioners and Directors
7. Board of Directors Meetings,, Hold Board of Directors Meetings in accordance with applica-
    ble regulations.
8. Business Plan, Submit the company's business plan and budget to the Board of Commis-
    sioners for approval no later than 60 days before the financial year ends. If not submitted on
    time, the previous year's business plan will be used.
9. Company Strategy, Determine the company's business strategy, and review, monitor, and
    supervise its implementation.
10. Company Vision and Goals, Determine the Company's vision and goals regularly and con-
    duct reviews to ensure they remain aligned and relevant to the Company's business.



BOARD OF DIRECTORS PROFILE

  Richard Kartawijaya
  Chief Executive Officer


  Richard Kartawijaya holds a Master's degree in Business Marketing from Esa Unggul University, which he
  completed in 1993 following his earlier Bachelor's degree in Electrical Engineering from Atma Jaya Catholic
  University in 1982.


  Since 2022, Richard Kartawijaya has served as the Chief Executive Officer (CEO) at PT. Remala Abadi, subse-
  quently assuming the role of Chief Executive Director in 2023. In addition, Richard has been actively involved
  as the Owner of BEATUS Home Living since 2020.
  Richard's previous roles include serving as CEO & President Director at PT. Graha Teknologi Nusantara from
  2015 to 2017, CEO at PT. Link Net, Tbk from 2013 to 2015, and leadership positions at PT. Ander Cakra Buana
  from 2009 to 2013.




  Samuel Adi Mulia
  Chief Financial Officer


  Samuel Adi Mulia pursued Finance studies at Trisakti University and later obtained a Bachelor's degree in
  Accounting from the same university in 1993.


  Since 2023, Samuel Adi Mulia has served as the Finance Director at PT. Remala Abadi. Prior to this role,
  Samuel held positions as the Internal Control Manager (Function Strategic & Cost Control Manager) at PT.
  Satria Antaran Prima Tbk from 2019 to 2020. He also served as the Finance Director at PT. Klaai Dendan Lestari
  and PT. Pat Petulai Energi from 2017 to 2019, and at PT. Intan Baruprana Finance Tbk from 2012 to 2017.




                                   PT. Remala Abadi Tbk | Annual Report 2023                                       74
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                                                                                  CORPORATE GOVERNANCE




CORPORATE SECRETARY

                                               Corporate Secretary Information
                                               •   Name: Maureen Graciela
                                               •   Address: Graha Mustika Ratu, Jalan Gatot Subroto No. 74-75,
                                                   South Jakarta
                                               •   Telephone: +62 21 8370 9269
                                               •   corporatesecretary@remala.id


                                               Education
                                               •   2022 - Present: Bachelor’s Degree – BINUS University
                                               •   2018 - 2021: Associate's Degree – STIKS Tarakanita




Pursuant to OJK Regulation Number 35/POJK.04/2014 dated December 8, 2014 concerning Corporate
Secretaries of Issuers or Public Companies ("POJK Number 35/2014"), the Company has appointed Mau-
reen Graciela as the Corporate Secretary effective February 26, 2024. This appointment was made based
on Decree Number 023/CSRA/IPO/DIR/II/2024 concerning the Establishment of a Corporate Secretary.

Corporate Secretary Duties and Responsibilities
The duties and responsibilities of the Corporate Secretary are in accordance with POJK No. 35/2014 dated
December 8, 2014 concerning Corporate Secretaries of Companies or Public Companies. These include
the following:

a. Compliance and Advising: Provide input to the Company's Directors to ensure compliance with applica-
   ble provisions, including but not limited to Law Number 40 of 2007 concerning Limited Liability Compa-
   nies, Law Number 8 of 1995 concerning Capital Markets, and other applicable regulations in the Repub-
   lic of Indonesia. This also includes adherence to general corporate governance norms.
b. Capital Market Development: Stay informed about developments in the Capital Market, especially regu-
   lations applicable in the Capital Market sector.
c. Liaison: Act as a liaison between the Financial Services Authority, Indonesian Stock Exchange, stake-
   holders, and the public.
d. Public Relations: Maintain good relations between the Company and the mass media.
e. Investor Relations: Provide services to the public (investors) for any information required by investors
   relating to the condition of the Company.
f. Support Activities: Carry out activities that support the Company's operations, including preparing
   Annual Reports, facilitating the General Meeting of Shareholders, ensuring Information Disclosure, etc.
g. Good Corporate Governance: Prepare and promote Good Corporate Governance (GCG) practices
   within the Company.
h. Documentation: Maintain and prepare Company documentation, including minutes from Directors'
   Meetings and Board of Commissioners' Meetings, and related matters.

In addition, the Corporate Secretary can act as a liaison between company management and external
parties such as clients, vendors, or other business partners. They also assist in compiling administrative
reports and maintaining the confidentiality of company information.



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                                                                                                 CORPORATE GOVERNANCE


AUDIT COMMITTEE
THE COMPANY HAS ESTABLISHED AN AUDIT COMMITTEE AND FORMULATED AN AUDIT
COMMITTEE CHARTER

The Company has established an Audit Committee and formulated an Audit Committee Charter, which serves as a work guideline
for the Audit Committee. The formation and operation of the Audit Committee are regulated by POJK No. 55/2015. According to
Decree Number: 001/SK-RA/KOM/XII/2023 concerning the Establishment of the Audit Committee dated November 18, 2023, the
term of office for the Audit Committee must not exceed that of the Board of Commissioners as stipulated in the Company's Articles
of Association. The committee members can be re-elected for one additional period.


Audit Committee Duties and Responsibilities
The Audit Committee is tasked with providing independent professional opinions to the Company's Board of Commissioners on
reports or issues submitted by the Company's Directors. It also identifies matters requiring the Board of Commissioners' attention.
The specific duties include:
a.   Annual Activity Plan: Create an annual activity plan approved by the Company's Board of Commissioners.
b.   Financial Information Review: Review financial information to be released by the Company, including financial reports, projec-
     tions, and other financial data.
c.   Compliance Review: Assess the Company's compliance with laws and regulations related to its activities.
d.   Audit Implementation Review: Conduct a review and assessment of audits performed by internal auditors and oversee
     follow-up actions taken by the Company's Directors on internal auditor findings.
e.   Complaint Review: Review and report to the Board of Commissioners on complaints related to the Company.
f.   Confidentiality: Maintain confidentiality with the Public Accountant regarding Company data and information.
g.   Public Accountant Relations: Supervise relations with Public Accountants and hold meetings or discussions with them.
h.   Guideline Management: Create, review, and update Audit Committee guidelines as necessary.
i.   Responsibility Assessment: Assess and confirm that all responsibilities stated in the Audit Committee Guidelines have been
     fulfilled.
j.   jIndependent Opinion: Provide an independent opinion in case of a disagreement between management and the Public
     Accountant regarding the services provided.
k.   Public Accountant Recommendation: Recommend the appointment of a Public Accountant to the Board of Commissioners,
     based on considerations of independence, scope of assignment, and fees.
l.   Risk Management Review: Review the risk management activities carried out by the Directors and, if applicable, by the risk
     monitoring function under the Board of Commissioners.
m. Conflict of Interest Review: Review and advise the Board of Commissioners on potential conflicts of interest within the
     Company.


To comply with Article 12 of POJK No. 55/2015, the Company has established an Audit Committee Charter dated November 18,
2023. According to POJK No. 55/2015, the Audit Committee meetings are held periodically at least once every three months and
must be attended by more than 50% of the total members. The meetings involve discussions and preparation of a comprehensive
work program to implement supervision over the performance of the Board of Directors.


AUDIT COMMITTEE AUTHORITY
A.   Access: Have full, free, and unlimited access to records, employees, funds, assets, and other company resources relevant to
     their duties.
B.   Communication: Communicate directly with employees, including the Board of Directors and parties performing the risk
     management internal audit function, and Accountants regarding the duties and responsibilities of the Audit Committee.
C.   Independent Assistance: Involve independent parties outside the Audit Committee members as necessary to assist in carry-
     ing out their duties.
D.   Additional Authorities: Exercise other authorities granted by the Board of Commissioners.




                                         PT. Remala Abadi Tbk | Annual Report 2023                                              76
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                                                                                                CORPORATE GOVERNANCE


AUDIT COMMITTEE COMPOSITION AND PROFILES

                                           Chairman: Ahmad Alamsyah Saragih, S.E.
                                           Profile: Detailed information on Ahmad Alamsyah Saragih's education and work
                                           experience is available in the Company Management and Supervision
                                           sub-chapter

                                           Member 1: Sudarmana, SE., AK., CA., CPA., CACP.
                                           Obtained a Bachelor's degree in Accounting from Brawijaya University in 1994
                                           and has work experience as branch manager of KAP Budiman, Wawan, Pamud-
                                           ji and Partners, Karanganyar, from 2022 until now.


                                           Member 2: Sunandar Ichsan
                                           Has a Master of Business Administration degree from the University of Hull,
                                           London in 1993 and in 1988 obtained a degree in Economics and Accounting.
                                           And has work experience as Director of PT Lautan Rejeki Luas from 2022 until
                                           now.




INTERNAL AUDIT
The Internal Audit Department at PT Remala Abadi Tbk operates under the provisions stipulated in Financial Services Authority
Regulation No. 56/POJK.04/2015 concerning the Establishment and Guidelines for Preparing the Internal Audit Unit Charter
(POJK 56/POJK.04/2015).

POSITION OF THE INTERNAL AUDIT WORK UNIT:
1.   The Internal Audit Work Unit is positioned under the auspices of the Board of Directors or the Company's Audit Committee.
     This arrangement ensures the independence and autonomy of the Internal Audit Work Unit, enabling it to carry out its duties
     without undue interference from company management.
2.   Functions of the Internal Audit Work Unit:
     ▪   Evaluation and Inspection: Responsible for evaluating and inspecting the company's systems, procedures, and business
         activities to ensure they are effective, efficient, and compliant.
     ▪   Internal Control: Assesses and enhances the company's internal control system to prevent misuse, fraud, and ensure the
         smooth continuity of operations.
     ▪   Preparation of Audit Plan: Develops an internal audit plan based on risk analysis to set audit priorities and create an
         effective audit schedule.
     ▪   Providing Improvement Recommendations: Offers recommendations for improvements to company management follow-
         ing audits to enhance systems, processes, and performance.
     ▪   Follow-up Monitoring: Monitors the implementation of recommended improvements, providing regular progress reports
         to management.

INTERNAL AUDIT DUTIES AND RESPONSIBILITIES
The duties and responsibilities of Internal Audit are guided by the regulations of the OJK and The Institute of Internal Auditors
("IIA") concerning standards and codes of ethics. The Internal Audit functions must be implemented with independence. Key
responsibilities include:
•    Annual Audit Plan: Develop an annual audit plan with a risk-based approach covering finance, accounting, operations, human
     resources, marketing, information technology, and other activities.
•    Implementation of Audit Plan: Execute the approved annual audit plan, including special assignments at the request of the
     President Director and Board of Commissioners.
•    Inspections and Assessments: Conduct inspections and assessments to evaluate the efficiency and effectiveness of finance,
     accounting, operations, human resources, marketing, information technology, and other activities.
•    Improvement Suggestions: Provide suggestions for improvement and objective information about examined activities to all
     levels of management.




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                                                                                                      CORPORATE GOVERNANCE




•   Audit Reports: Prepare and submit audit result reports to the President Director, Board of Commissioners through the Audit
    Committee, and related parties.
•   Follow-up Monitoring: Monitor and evaluate the adequacy of the follow-up on audit results by the auditee and report the
    completion status to the President Director and Board of Commissioners through the Audit Committee.
•   Professionalism Maintenance: Maintain the professionalism of internal auditors through continuing education programs and
    certification programs to enhance their knowledge and skills.
•   Cooperation with the Audit Committee: Collaborate with the Audit Committee and act as its secretariat.
•   Quality Evaluation Program: Develop a program to evaluate the quality of internal audit activities.
•   Special Reviews and Investigations: Conduct special reviews, evaluations, and/or investigations as needed.

By fulfilling these functions and responsibilities, the Internal Audit Work Unit plays a critical role in maintaining the integrity, trans-
parency, and sustainability of PT Remala Abadi Tbk through continuous evaluation, control, and recommendations provided to
management.

INTERNAL AUDIT WORK UNIT AUTHORITY
The Internal Audit Work Unit at PT Remala Abadi Tbk holds several key authorities to ensure effective auditing and oversight
within the Company:
a. Preparing an Internal Audit Plan: The internal audit unit has the authority to prepare an internal audit plan, which includes
     defining the scope, objectives, and schedule of the audit. This plan is formulated based on risk assessments conducted
     within the company.
b. Conducting Internal Audits: The internal audit unit is authorized to carry out internal audits, examining the company's
     systems, procedures, and business activities. The aim of these audits is to assess the effectiveness, efficiency, and
     compliance with company policies.
c. Providing Recommendations for Improvements: Based on audit findings, the internal audit unit is empowered to provide
     recommendations to company management. These recommendations are intended to enhance internal controls and overall
     company performance.
d. Carrying Out Follow-Up: The internal audit unit is responsible for ensuring follow-up on the recommendations provided to
     management. This follow-up process is crucial to confirm that the recommended improvements are being implemented
     effectively and appropriately.
e. Reporting Audit Results: The internal audit unit has the authority to report audit results periodically to the company's Board
     of Directors or Audit Committee. These reports include findings, recommendations for improvement, and the status of
     follow-up actions.

 Through these authorities, the internal audit unit plays a vital role in aiding the company to achieve its business objectives by
ensuring sustainability, transparency, and compliance in company operations.




                                               Information Regarding the Internal Audit Work Unit
                                               Name: Ika Huraeri Saputro
                                               Address: Graha Mustika Ratu, Jalan Gatot Subroto No.74-75, South Jakarta


                                               Education
                                               •    2018: Bachelor Degree in Informatics Engineering, MH Thamrin University
                                               •    Work Experience
                                               •    2022 – 2023: Functional IT, PT Inti Sumber Baja Sakti
                                               •    2019 – 2022: IT Support, Yafindo Group
                                               •    2016 – 2019: IT Support, PT Electronic Data Interchange Indonesia
                                               By exercising its authority in these areas, the Internal Audit Work Unit at PT
                                               Remala Abadi Tbk ensures that the Company's operations are continuously
                                               evaluated and improved to align with best practices and regulatory standards.




                                           PT. Remala Abadi Tbk | Annual Report 2023                                                    78
Page 81
                                                                                              CORPORATE GOVERNANCE


NOMINATION AND
REMUNERATION COMMITTEE
Pursuant to OJK Regulation Number 34/POJK.04/2014 concerning the Nomination and Remuneration Committee of Issuers or
Public Companies ("POJK No. 34/2014"), PT Remala Abadi Tbk has established a Nomination and Remuneration Committee.
The implementation of the Nomination and Remuneration function within the company is overseen by the Board of Commission-
ers, based on Decree Number 003/SK/RA/DIR/XI/2023 dated November 18, 2023. The composition of the Nomination and
Remuneration Committee is as follows:



                                    Alamsyah Saragih
                                    Independent Commissioner

                                    Ahmad Alamsyah Saragih, S.E., pursued his academic studies on Economics at
                                    Padjadjaran University, where he earned a Bachelor's degree in Economics in 1992.

                                    Currently, Ahmad Alamsyah Saragih serves as an Independent Commissioner of the
                                    Company. In addition to this role, Alamsyah has been actively involved as a GCG
                                    Advisor in the INDONESIAN BATTERY INDUSTRY since 2021.

                                    Previously, Alamsyah held various significant positions in the OMBUDSMAN OF THE
                                    REPUBLIC OF INDONESIA from 2016 to 2021, contributing in roles such as Member
                                    of the Economic Sector and Member of the Examination Sector Special. Prior to that,
                                    Alamsyah served in the Central Information Commission of the Republic of Indonesia
                                    from 2009 to 2013, where he held positions as Chairman and Member. Alamsyah also
                                    gained valuable experience as a Local Governance Specialist at the World Bank Jakar-
                                    ta from 2002 to 2007.



                                    Member 1
                                    Verah Wahyudi Singgih Wong
                                    President Commissioner

                                    Verah Wahyudi Singgih Wong pursued Financial Management studies and earned a
                                    Bachelor's degree in Financial Management from the University of Surabaya in 2001.

                                    Verah Wahyudi Singgih Wong currently holds the position of President Commissioner
                                    of the company, where Verah provides leadership with strategic vision and exceptional
                                    wisdom. Previously, Verah served as the Finance Director at PT. Remala Abadi for 16
                                    years, from 2006 to 2022. Prior to that role, Verah held the position of Finance Control-
                                    ler at PT. Wing Surya Surabaya from 2002 to 2005.




                                    Member 2:
                                    Syaiful Salamia
                                    Address: Graha Mustika Ratu, Jalan Gatot Subroto No.74-75, South Jakarta

                                    Education:
                                    Bachelor of Economy, Borobudur University, Jakarta (2017)

                                    Work Experience:
                                    Human Resources Manager at PT Hashmicro Solusi Indonesia (2022-2023)
                                    HR & GA Manager at PT Armindo Mandiri (2020-2022)
                                    HR & GA Supervisor at PT Air Mas Perkasa (2019)




79                                      PT. Remala Abadi Tbk | Annual Report 2023
Page 82
                                                                                                CORPORATE GOVERNANCE



STATEMENT OF INDEPENDENCE
Based on the Charter and referring to OJK Regulation No. 55/POJK.04/2015, the Nomination and Remuneration Committee
operates independently in carrying out its duties and responsibilities without interference from any party and in compliance with
applicable laws and regulations. The independence of the Nomination and Remuneration Committee is further ensured by having
an Independent Commissioner as the Committee Chair and independent parties as Committee Members. All members have
fulfilled the independence requirements as stipulated in the Personal Statement signed at the time of appointment and document-
ed by the Corporate Secretary.

COMMITTEE CHARTER
The Committee has a Nomination and Remuneration Committee Charter (NRC Charter) that serves as the basis for its work. The
NRC Charter has been adapted to POJK No. 34/POJK.04/2014 and was approved by the Board of Commissioners on November
18, 2023.

IMPLEMENTATION OF THE NOMINATION FUNCTION NOMINATION POLICY
In carrying out the Nomination function for members of the Board of Commissioners and Directors, the Board of Commissioners
has the following duties and responsibilities:
1. Provide recommendations to and/or assist the Board of Commissioners regarding:
     A. The composition of positions of members of the Board of Directors and/or Board of Commissioners.
     B. Policies and criteria required in the nomination process for members of the Board of Directors and/or members of the
          Board of Commissioners.
     C. Performance evaluation policy for members of the Board of Directors and/or members of the Board of Commissioners.
     D. Systems and procedures for selecting and/or replacing members of the Board of Commissioners and Directors to the
          Board of Commissioners to be submitted to the General Meeting of Shareholders ("GMS").
2. Assist the Board of Commissioners in assessing the performance of members of the Board of Directors and/or members of
     the Board of Commissioners based on prepared benchmarks. This assessment evaluates individual contributions and identi-
     fies development needs or necessary performance improvements.
3. Provide recommendations to the Board of Commissioners regarding capacity development programs for members of the
     Board of Directors and/or members of the Board of Commissioners to enhance their ability to effectively carry out their duties.
4. Propose candidates who meet the requirements for membership on the Board of Directors and/or Board of Commissioners to
     the Board of Commissioners for submission to the General Meeting of Shareholders (GMS). Candidate proposals must be
     based on predetermined criteria and their potential contribution to the company.

IMPLEMENTATION OF THE REMUNERATION FUNCTION
REMUNERATION POLICY
The remuneration policy for the Board of Commissioners and Directors is determined by the Company based on recommenda-
tions from the Board of Commissioners as the implementer of the nomination and remuneration function. In carrying out this
function, the Board of Commissioners has the following duties and responsibilities:
1. Provide recommendations to and/or assist the Board of Commissioners regarding:
     A. The remuneration structure for members of the Board of Directors and members of the Board of Commissioners.
     B. The policy on remuneration for members of the Board of Directors and members of the Board of Commissioners.
     C. The amount of remuneration for members of the Board of Directors and members of the Board of Commissioners.
2. Assist the Board of Commissioners in assessing the suitability of the remuneration received by each member of the Board of
     Directors and/or members of the Board of Commissioners in relation to their performance.
3. The structure, policies, and amount of remuneration must take into account:
     A. Remuneration applicable to the industry in accordance with the business activities of similar public companies and the
          business scale of public companies in the industry.
     B. The duties, responsibilities, and authorities of members of the Board of Directors and/or members of the Board of
          Commissioners in relation to achieving the goals and performance of public companies.
     C. Performance targets or achievements of each member of the Board of Directors and/or members of the Board of
          Commissioners.
     D. Balance of allowances between fixed and variable components.
4. The structure, policies, and amount of remuneration must be evaluated by the Nomination and Remuneration Committee
     once a year.

Committee Meeting Policy
The Nomination and Remuneration Committee holds regular meetings at least once every four months. Meetings are attended by
members of the Nomination and Remuneration Committee, with the majority being the Chair. Decisions at Nomination and Remu-
neration Committee meetings are made by prioritizing consensus deliberation. The results of each meeting are recorded in the
minutes, including any dissenting opinions, which are signed by all members present.




                                        PT. Remala Abadi Tbk | Annual Report 2023                                              80
Page 83
CORPORATE
SOCIAL
RESPONSIBILITY




81     PT. Remala Abadi Tbk | Annual Report 2023
Page 84
PT. Remala Abadi Tbk | Annual Report 2023   82
Page 85
                                                                      CORPORATE SOCIAL RESPONSIBILITY



 CORPORATE SOCIAL
 RESPONSIBILITY
The implementation of corporate social responsibility (CSR) reflects the Company's commitment to foster-
ing harmonious relationships with the environment, society, and all stakeholders. CSR implementation is
also aimed at advancing the Digital Economy to foster sustainable growth. It is hoped that through these
efforts, the Company can achieve the ideal, objective, and targeted implementation of CSR.

CORPORATE SOCIAL RESPONSIBILITY RELATED TO SOCIETY

In a bid to enhance CSR initiatives, the Company is dedicated to delivering social benefits to the communi-
ty through the "Free Internet for the Thousand Islands" program. This program is designed to provide free
internet access to the residents of the Thousand Islands, enabling them to experience its benefits in their
daily lives. Below are further details about this program:

1. Free Internet Access: The Company has established internet hotspots in several strategic locations
   across the Seribu Islands, making internet access readily available to locals and tourists alike, even in
   remote areas.
2. Educational Benefits: Internet access facilitates enhanced educational opportunities for children in the
   Thousand Islands. They can access online educational resources, conduct research, and enrol in
   online courses to broaden their knowledge.
3. Support for Economic Development: The internet also aids local communities in fostering economic
   growth. It enables them to promote local products, engage in online businesses, and seek employ-
   ment opportunities through online platforms.
4. Local Partnerships: The Company collaborates with local governments and social institutions to
   efficiently and sustainably execute this program. This includes providing training to the public on safe
   and productive internet usage.

 The Company carries out CSR initiatives in the following manner:




     Kegiatan 1
     • Activity 1
     • Theme               : Equal Internet Access for the Thousand Islands
     • Goal                : Provide free internet access to expand service coverage in the Thousand
                             Islands (Pari Island and Kelapa Island)
     •   Implementation    : From 2022 to Present
     •   Activity Format   : Installation of Internet Hotspots in densely populated areas with waived
                             monthly fees, allowing individuals to connect their mobile or other Wi-Fi
                             enabled devices to the available hotspots.




83                               PT. Remala Abadi Tbk | Annual Report 2023
Page 86
                                                                      CORPORATE SOCIAL RESPONSIBILITY




CORPORATE SOCIAL RESPONSIBILITY RELATED TO THE ENVIRONMENT

Indonesia is currently grappling with environmental pollution, one significant aspect being vehicle carbon
emissions contributing to air pollution. This issue of air pollution poses a serious threat to public health
and the environment at large.

The Company is dedicated to assisting Indonesia in addressing environmental concerns by acquiring 23
(twenty-three) electric cars (electric vehicles/EVs). In addition to mitigating air pollution, these electric
cars also contribute to the reduction of noise pollution.




   The Company's commitment to fulfilling social responsibility transcends mere investment in the
   organization; it permeates the very essence of its existence and sustainability.




                                  PT. Remala Abadi Tbk | Annual Report 2023                                84
Page 87
85   PT. Remala Abadi Tbk | Annual Report 2023
Page 88
FINANCIAL
STATEMENT

      PT. Remala Abadi Tbk | Annual Report 2023   86
Page 89
PT REMALA ABADI Tbk AND SUBSIDIARIES

       Consolidated Financial Statements
For the Years Ended December 31, 2023 and 2022

                    With
         Independent Auditors’ Report
Page 90
                                                TABLE OF CONTENTS



                                                                           Page

Board of directors’ statement

Independent auditors’ report

Consolidated statements of financial position                              1-3

Consolidated statements of profit or loss and other comprehensive income   4-5

Consolidated statements of changes in equity                                 6

Consolidated statements of cash flows                                      7-8

Notes to the consolidated financial statements                             9 - 65
Page 91

          
Page 92

          
Page 93

          
Page 94

          
Page 95

          
Page 96

          
Page 97
PT REMALA ABADI Tbk AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)



                                                   Notes         December 31, 2023       December 31, 2022 *)       January 1, 2022 *)
ASSET

CURRENT ASSETS
Cash                                             2c,2l,2m,4           9.440.496.783           13.178.488.169             9.193.020.680
Trade receivable                                    2m,5
  Third parties                                                       3.494.778.324            5.911.682.330             3.754.467.808
  Related parties                                  2i,33b             1.437.366.657            2.008.884.444               371.653.058
Others receivable - third parties                  2m,6a              1.370.009.835                4.500.000                17.500.000
Inventories                                         2d,7             12.124.390.559            7.991.118.576             1.995.454.491
Prepaid expenses                                    2e,8                343.108.374            2.107.511.833                42.222.278
Advances                                              8               7.726.316.024              100.000.000               154.787.077
Total Current Assets                                                 35.936.466.556           31.302.185.352           15.529.105.392

NON-CURRENT ASSETS
Deferred tax assets                                2k,20d             1.225.295.691            1.009.964.008               812.463.608
Others receivable                                    6b
  Third parties                                                                   -              462.975.185              462.975.185
  Related parties                                  2i,33c             3.707.674.348            4.748.529.904            4.635.597.290
Advances on Investment                               9a                 100.000.000              441.355.556              166.544.444
Investment in associates entities                  3f,9b                456.891.917               47.500.000               47.500.000
Fixed assets                                       2g,10             92.628.290.579           56.666.431.536           52.955.547.474
Right of use assets                                2p,11             12.710.736.093            2.036.113.611              253.336.500
Other non-current assets                           2m,12                241.043.430              123.662.390                        -
Total Non-Current Assets                                            111.069.932.059           65.536.532.190           59.333.964.501
TOTAL ASSETS                                                        147.006.398.615           96.838.717.542           74.863.069.893


*) As restated (Note 40)




      The accompanying notes to consolidated financial statements are an integral part of these consolidated financial statements.
                                                                                                                                     1
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PT REMALA ABADI Tbk AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)



                                                   Notes        December 31, 2023       December 31, 2022 *)       January 1, 2022 *)
LIABILITIES AND EQUITY

SHORT-TERM LIABILITIES
Short-term bank loan                               2m,13             12.602.714.636              189.770.927            6.578.487.668
Trade payables - third parties                     2m,14             15.449.371.731           13.178.605.526           15.309.605.114
Accrued expenses                                   2m,15              4.414.848.193            5.160.417.407            2.962.142.654
Tax liabilties                                     2k,20a             7.592.339.670            7.031.760.090            4.375.634.553
Current maturities of
  long - term liabilies:
  Consumer financing liabilities                   2m,16              3.339.189.887              598.250.302            1.680.974.458
  Lease liabilities                                2p,18                692.476.700                        -                        -
Total Short Term Liabilities                                         44.090.940.817           26.158.804.252           30.906.844.447

LONG TERM LIABILITIES
Other liabilities                                  2m,17
  Related parties                                  2i,33d             2.350.000.000            2.700.000.000            2.700.000.000
Long - term liabilities - net of
  current maturities:
  Consumer financing liabilities                  2m,16               2.223.014.297              670.347.045              300.336.430
  Lease liabilities                              2m,2p,18             4.148.632.393                        -                        -
Employee benefits liabilities                     2o,19               2.612.829.682            2.019.863.286            1.743.559.004
Total Long - Term Liabilities                                        11.334.476.372            5.390.210.331            4.743.895.434
Total Liabilities                                                    55.425.417.188           31.549.014.583           35.650.739.881

*) As restated (Note 40)




      The accompanying notes to consolidated financial statements are an integral part of these consolidated financial statements.
                                                                                                                                        2
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PT REMALA ABADI Tbk AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)



                                                   Notes        December 31, 2023       December 31, 2022 *)       January 1, 2022 *)
EQUITY
Equity attributable
to the owners of the parent entity
Share capital - at par value Rp100,000
  Authorized capital - 2,200,000 shares
     as of December 31, 2023 and 500 shares
     as of December 31, 2022
  Issued and paid-up capital -
     550.000 shares as of December 31, 2023
     and 250 Share as of 31 Desember 2022            21              55.000.000.000               25.000.000               25.000.000
Additional paid-in capital                           22               7.271.363.600            7.271.363.600            7.271.363.600
Retained earnings                                    23
  Appropriated                                                        1.000.000.000                        -                        -
  Unappropriated                                                     27.996.189.195           57.838.171.482           31.886.365.512
Other comprehensive income                         2o,24
  Remeasurement of employee benefits                                     (62.121.168)              (9.993.078)             (97.791.150)
Sub-total                                                            91.205.431.628           65.124.542.004           39.084.937.962
Non-controlling interests                            25                 375.549.799              165.160.955              127.392.050
Total Equity                                                         91.580.981.427           65.289.702.959           39.212.330.012
TOTAL LIABILITIES AND EQUITY                                        147.006.398.615           96.838.717.542           74.863.069.893


*) As restated (Note 40)




      The accompanying notes to consolidated financial statements are an integral part of these consolidated financial statements.
                                                                                                                                        3
Page 100
PT REMALA ABADI Tbk AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the Years Ended December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)



                                                              Notes                     2023                          2022 *)
REVENUES                                                       2j,26              217.392.736.188                209.708.540.972

COST OF REVENUES                                               2j,27                96.855.889.886               122.204.281.276
GROSS PROFIT                                                                      120.536.846.302                  87.504.259.696

Sales expenses                                                 2j,28               (17.081.697.186)               (15.401.658.262)
General and administrative expenses                            2j,29               (48.494.637.197)               (35.434.110.522)
Financing charges                                              2j,30                  (784.346.189)                (1.392.446.782)
Other income                                                   2j,31                (1.537.643.957)                 1.385.567.977
Other expenses                                                 2j,31               (16.269.826.301)                (1.155.311.180)

PROFIT BEFORE INCOME TAX
EXPENSES                                                                            36.368.695.472                 35.506.300.927

INCOME TAX BENEFITS (EXPENSE).
Current                                                       2k,20b               (10.410.848.586)                 (9.739.430.140)
Deferred                                                      2k,20c                   200.613.661                     222.360.787
Income Tax Expense - Net                                                           (10.210.234.925)                 (9.517.069.353)
NET PROFIT                                                                          26.158.460.547                 25.989.231.574

OTHER COMPREHENSIVE INCOME
Item that will not reclassified to
   profit and loss:
   Remeasurement of employee benefits                         2o,19                     (66.900.102)                   113.001.760
   Related income taxes                                       2k,20c                     14.718.022                    (24.860.387)
Other Comprehensive Income (Loss) - Net                                                 (52.182.080)                    88.141.373
NET COMPREHENSIVE PROFIT                                                            26.106.278.468                 26.077.372.947
BASIC EARNINGS PER SHARE                                       2r,32                            69,87                     51.903,61

*) As restated (Note 40)




     The accompanying notes to consolidated financial statements are an integral part of these consolidated financial statements.
                                                                                                                                      4
Page 101
PT REMALA ABADI Tbk AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the Years Ended December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)



                                                              Notes                     2023                          2022 *)

Net profit Attributable
 to:
 Owner of the parent entity                                                         26.133.017.713                 25.951.805.970
 Non-controlling interests                                                              25.442.834                     37.425.604
Total                                                                               26.158.460.547                 25.989.231.574

Net comprehensive profit
 attributtable to:
 Owner of the parent entity                                                         26.080.889.624                 26.039.604.042
 Non-controlling interests                                                              25.388.844                     37.768.905
Total                                                                               26.106.278.468                 26.077.372.947

*) As restated (Note 40)




     The accompanying notes to consolidated financial statements are an integral part of these consolidated financial statements.
                                                                                                                                    5
Page 102
PT REMALA ABADI Tbk AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
For the Years Ended December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)



                                                                      Equity Attributable to Owners of the Parent Entity
                                                                                                                           Other
                                    Issued capital         Additional                   Retain earning                 Comprehensive                                 Non-Controlling
                                       and Paid          Paid-in Capital       Appropriated      Unappropriated           Income                Sub-Total               Interest        Total Equity
Balance at January 1, 2022 -
  as previously reported                25.000.000        7.271.363.600                            26.753.539.239                      -      34.049.902.839                       -    34.049.902.839
Adjustment (Note 40)                                 -                     -                -        5.132.826.273          (97.791.150)       5.035.035.123            127.392.050      5.162.427.173
Balance at January 1, 2022
  as restated                           25.000.000        7.271.363.600                     -      31.886.365.512           (97.791.150)      39.084.937.962            127.392.050     39.212.330.012
Net profit for the year                              -                     -                -      25.951.805.970                      -      25.951.805.970              37.425.604    25.989.231.574
Other Comprehensive
  income - net                                       -                     -                -                     -         87.798.072            87.798.072                343.301        88.141.373
Balance at December 31, 2022            25.000.000        7.271.363.600                     -      57.838.171.482            (9.993.078)      65.124.542.004            165.160.955     65.289.702.959
Acquisition of subsidiaries                          -                     -                -                     -                    -                    -           185.000.000       185.000.000
Stock dividends (Note 21)           54.975.000.000                         -                -      (54.975.000.000)                    -                    -                      -                   -
Net profit for the current period                    -                     -                -      26.133.017.713                      -      26.133.017.713              25.442.834    26.158.460.547
Othres Comprehensive
  loss - net                                         -                     -                -                     -         (52.128.090)         (52.128.090)                (53.990)      (52.182.080)
Appropriated General reserve
  (Note 21)                                          -                     -    1.000.000.000       (1.000.000.000)                    -                    -                      -                   -
Balance at December 31, 2023        55.000.000.000        7.271.363.600         1.000.000.000      27.996.189.195           (62.121.168)      91.205.431.628            375.549.799     91.580.981.427




                                      The accompanying notes to consolidated financial statements are an integral part of these consolidated financial statements.
                                                                                                                                                                                                       6
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PT REMALA ABADI Tbk AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)



                                                                                        2023                          2022 *)
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers                                                           220.159.557.332                 205.292.670.257
Payment to suppliers                                                              (93.071.285.228)               (115.272.399.670)
Payments to employees                                                             (44.796.685.497)                (35.065.095.945)
Payment of other operating expenses                                               (39.513.845.511)                (12.481.777.059)
Payment of financing charges                                                         (784.346.189)                 (1.392.446.782)
Payment of corporate income tax                                                    (9.984.677.707)                 (7.007.779.968)
Net Cash Flows provided from Operating Activities                                   32.008.717.199                 34.073.170.833

CASH FLOWS FROM INVESTING ACTIVITIES
Receipts from other receivables - third parties                                      1.040.855.557                    800.000.000
Receipts from other receivables - related parties                                      986.040.165                              -
Payments for other receivables - third parties                                      (2.356.050.000)                             -
Payments for other receivables - related parties                                                 -                   (540.855.556)
Acquisition of fixed assets                                                        (44.136.946.744)               (18.976.428.497)
Advance payment for purchase of fixed assets                                          (200.000.000)                             -
Addition of right-of-use assets                                                     (1.885.170.000)                (2.808.888.888)
Additional down payment for investment and
  investment in associated entities                                                    (158.644.444)                  (274.811.112)
Net Cash Flows Used in Investing Activities                                        (46.709.915.466)               (21.800.984.053)

CASH FLOWS FROM FINANCING ACTIVITIES
Receipt of other liabilities - related parties                                          700.000.000                                 -
Payment for:
  Short-term bank loan                                                                            -                 (1.500.000.000)
  Consumer financing liabilities                                                     (1.252.480.354)                (1.898.002.550)
  lease liabilities                                                                    (347.256.474)                             -
  Other liabilities - related parties                                                  (550.000.000)                             -
Net Cash Flows Provided for Financing Activities                                     (1.449.736.828)                (3.398.002.550)

*) As restated (Note 40)




     The accompanying notes to consolidated financial statements are an integral part of these consolidated financial statements.
                                                                                                                                        7
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PT REMALA ABADI Tbk AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)



                                                                                        2023                          2022 *)
NET INCREASE (DECREASE) IN CASH                                                    (16.150.935.095)                 8.874.184.230

CASH AT BEGINNING OF YEAR                                                           12.988.717.242                  4.114.533.012
CASH AT END OF YEAR                                                                  (3.162.217.853)               12.988.717.242


Cash consists of:
 Cash                                                                                9.440.496.783                 13.178.488.169
 Overdraft                                                                         (12.602.714.636)                  (189.770.927)
Total                                                                                (3.162.217.853)               12.988.717.242

*) As restated (Notes 40)

Additional information on activities that do not affect cash flows is presented in Note 36.




     The accompanying notes to consolidated financial statements are an integral part of these consolidated financial statements.
                                                                                                                                    8
Page 105
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

1. GENERAL

   a. Establishment of the Company’s and General Information

      PT Remala Abadi (“Company”) was established in the Republic of Indonesia based on Notarial Deed No. 5
      of Fajra Rizqi Nasution, SH., dated March 15, 2004 and has been ratified by the Minister of Justice and
      Human Rights of the Republic of Indonesia in Decree No. C-12023 HT.01.01.TH.2004 dated May 13, 2004
      and announced in State Gazette No. 081 Supplement to the Republic of Indonesia State Gazette
      No. 031462 dated October 10, 2023. The Company’s Articles of Association have undergone several
      changes, most recently based on Deed No. 45 dated November 15, 2023 by Notary Elizabeth Karina
      Leonita, SH., M.Kn., Notary in South Jakarta, which has received approval from the Minister of Law and
      Human Rights of the Republic of Indonesia in Decree No. AHU-0071258.AH.01.02.TAHUN 2023 dated
      November 17, 2023 and has been received by the Minister of Law and Human Rights based on letter
      No. AHU-AH.01.09-0186388 and letter No. AHU-AH.01.03-0143300 dated November 17, 2023.

      According to Article 3 of the Company’s Articles of Association, the Company operates in the trade and
      services sector, namely trading computers and computer equipment, software and internet service
      providers. Currently, the Company operates in the internet service provider sector. The Company started
      its commercial business activities in 2004. The Company’s domicile is at Graha Mustika Ratu Fl. GF,
      Jl. Gatot Subroto No.74 - 75, South Jakarta, while the operational locations or marketing offices are in
      3 (three) locations spread across Central Jakarta, East Jakarta and Bekasi.

      The controlling shareholder of the Company is Verah Wahyudi Singgih Wong.

   b. Boards of Commissioners and Directors, Audit Committee, and Employees

      The composition of the Company’s Board of Commissioners and Directors as of December 31, 2023 and
      2022 was as follows:

                                             December 31, 2023                     December 31, 2022
      Board of Commissioners
      The main commissioner         :   Verah Wahyudi Singgih Wong                     Jimmi Anka
      Independent Commissioner      :   Ahmad Alamsyah Saragih, SE                         -

      Directors
      President director            :        Richard Kartawijaya            Verah Wahyudi Singgih Wong
      Director of Finance)          :         Samuel Adi Mulia                            -

      The composition of the Company’s Audit Committee as of December 31, 2023 and 2022 is as follows:

                                             December 31, 2023                     December 31, 2022
      Chairman                      :   Ahmad Alamsyah Saragih, SE                          -
      Members                       :          Sudarmana                                    -
      Members                       :        Sundara Ichsan                                 -

      On November 18 2023, the Company’s Board of Directors appointed Hong Chintia as Corporate Secretary
      based on Decree No. 002/SK/RA/DIR/XI/2023.


                                                                                                            9
Page 106
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

1. GENERAL (Continued)

      The Company’s key management personnel consist of the Board of Commissioners and Directors.

      As of December 31, 2023 and 2022, the Company and Subsidiaries (hereinafter collectively referred to as
      the (“Group”) had 69 and 62 permanent employees respectively (unaudited).

   c. Subsidiary Entity Structure

      As of December 31, 2023 and 2022, the Company has Subsidiaries with direct ownership as follows:

                                                                                                                        Total Assets Before Elimination
                                                                              Position and       Ownership Percentage          (In million rupiah)
                                                            Date             Business Year           December 31                  December 31
               Child entity         Business fields     Establishment         Commercial          2023        2022          2023               2022
       PT PC 24 Cyber Indonesia     Internet Services   January 6, 2006    Bekasi, Jawa Barat/    99%         99%             27.806           22.023
         (PC 24)                        Providers                                 2006

       PT Solusi Aplikasi Andalan      Trade and        August 19, 2021     Jakarta Timur /       88%         88%                667                 -
         Semesta (SAAS)               programming                          Not yet operational
                                        computer

       PT Akselerasi Informasi          Trading         January 27, 2023    Jakarta Selatan /     50%          -                 222                 -
         Indonesia (AII)                                                   Not yet operational


      PT PC 24 Cyber Indonesia

      The Company established PT PC 24 Cyber Indonesia (“PC 24”) based on Notarial Deed No. 2 by Anita
      Munaf, SH., dated January 6, 2006 and has been ratified by the Minister of Law and Human Rights of the
      Republic of Indonesia in Decree No. C-02103 HT.01.01.TH.2006 dated 24 January 2006. The Articles of
      Association of PC 24 have undergone several changes, most recently based on Notarial Deed
      No. 4 dated June 10, 2020 by Idriansyah Rizal, SH, M.Kn., regarding additions to the aims and objectives
      of business activities. This change has been approved by the Minister of Law and Human Rights in Decree
      No. AHU-0040319.AH.01. 02. TAHUN 2020 dated June 13, 2020.

      PC 24 is engaged in cable telecommunications, computer programming activities, electrical and other
      telecommunications network construction, as well as wholesale and retail trade, namely trade in computers
      and computer equipment, as well as software. PC 24’s domicile is in Bekasi City, West Java. Currently,
      PC 24 operates in the internet service provider sector and started its commercial business activities in
      2006.

      The Company share ownership in PC 24 is 99%. PC 24’s total assets before elimination on December 31,
      2023 and 2022 were respectively Rp26,898,977,871 and Rp22,022,655,315.




                                                                                                                                                    10
Page 107
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

1. GENERAL (Continued)

      PT Solusi Aplikasi Andalan Semesta

      The Company established PT Solusi Aplikasi Andalan Semesta (“SAAS”) based on Notarial Deed No. 8 by
      Idriansyah Rizal, SH, M.Kn., dated August 29, 2021 and has been ratified by the Minister of Law and
      Human Rights of the Republic of Indonesia in Decree No. AHU-0052254.AH.01. 01.TAHUN 2021 dated
      August 24, 2021 with the following composition of shareholders:
      (a) Company amounting to Rp400,000,000 or 400 shares.
      (b) Tri Sefti Adi amounting to Rp50,000,000 or 50 shares.
      (c) Nur Rakhmad Setiawan amounting to Rp50,000,000 or 50 shares.

      Furthermore, based on Notarial Deed No. 8 dated May 20, 2022 by Novita Sari Sianturi, SH, M.Kn., and
      has been accepted by the Minister of Law and Human Rights in the Letter of Acceptance of Notification of
      SAAS Data Changes No. AHU-AH.01.09-0016330 dated May 28, 2022. SAAS shareholders approved the
      sale/transfer of all shares owned by Nur Rakhmad Setiawan, totaling 30 shares to Moh Reza Pahlevi and
      20 shares to the Company, as well as the sale/ transfer of 20 shares belonging to Tri Sefti Adi to the
      Company, so that the composition of SAAS shareholders is as follows:
      (a) Company amounting to Rp440,000,000 or 440 shares.
      (b) Tri Sefti Adi amounting to Rp30,000,000 or 30 shares.
      (c) Moh Reza Palevi amounting to Rp30,000,000 or 30 shares.

      SAAS is engaged in wholesale trading and computer programming activities. SAAS domicile is in East
      Jakarta. SAAS has not yet started its commercial business activities.

      The Company capital deposit in SAAS was made on December 13, 2022 amounting to Rp1,000,000 and in
      March - June 2023 amounting to Rp439,000,000. Based on Notarial Deed No. 11 dated November 7, 2023,
      the shareholders decided to provide dispensation and ratification for the delay in fulfilling capital deposit
      obligations by SAAS shareholders. In connection with this, SAAS was consolidated into the Company
      starting November 7, 2023.

      PT Akselerasi Informasi Indonesia

      The Company established PT Akselerasi Informasi Indonesia (“AII”) based on Notarial Deed No. 18 by
      Kumala Tjahjani Widodo, SH, MH., M.Kn., dated January 27, 2023 and has been ratified by the Minister of
      Law and Human Rights of the Republic of Indonesia in Decree No. AHU-0007657.AH.01. 01.TAHUN 2023
      dated January 31, 2023 with the Company’s ownership in SAAS amounting to 50% (equivalent to
      Rp125,000,000 or 125 shares).

      AII operates in the fields of wholesale trade and information and communication. AII’s domicile is in South
      Jakarta. AII has not yet started its commercial business activities. The Company’s capital contribution to
      AII was made on March 14, 2023 amounting to Rp16,390,000 and on July 28, 2023 amounting to
      Rp108,610,000. Based on Notarial Deed No. 60 dated November 17, 2023, the shareholders decided to
      provide dispensation and ratification for the delay in fulfilling capital deposit obligations by AII shareholders.
      In connection with this, AII was consolidated into the Company starting November 17, 2023.




                                                                                                                     11
Page 108
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

1. GENERAL (Continued)

   d. Completion of Consolidated Financial Statements

      Company management is responsible for the preparation of these consolidated financial statements which
      have been approved by the Board of Directors for publication on May 20, 2024.


2. MATERIAL ACCOUNTING POLICY INFORMATION

   a. Basis of Preparation of the Consolidated Financial Statements

      The consolidated financial statements have been prepared and presented in accordance with Financial
      Accounting Standards (“SAK”), which comprise the Statements (“PSAK”) and Interpretations (“ISAK”)
      issued by the Board of Financial Accounting Standards of the Indonesian Institute of Accountants and the
      Board of Syariah Accounting Standards of the Indonesian Institute of Accountants, and regulations of
      capital market regulator.

      The accounting policies applied in the preparation of these consolidated financial statements are
      consistent with the accounting policies applied in the preparation of the Group’s consolidated financial
      statements for the year ended December 31, 2022.

      The consolidated financial statements, except for the consolidated statements of cash flows, have been
      prepared on an accrual basis of accounting using the historical cost concept, except for certain accounts
      that are measured on the other bases as described in the related accounting policies.

      The consolidated statements of cash flows are prepared using the direct method, and classified into
      operating, investing and financing activities.

      The presentation currency used in the preparation of the consolidated financial statements is Rupiah (Rp),
      which is also the functional currency of the Company and Subsidiary.

      Amendments to standards issued and effective for the financial year at or after January 1, 2023 which do
      not have material impact on the consolidated financial statement are as follows:
       Amendment to PSAK No. 1, “Presentation of Financial Statements” regarding liabilities classified as
          short-term or long-term, as well as disclosure of accounting policies.
       Amendment to PSAK No. 16, “Fixed Assets”.
       Amendment to PSAK No. 25, “Accounting Policies, Changes in Accounting Estimates and Errors”
          regarding the definition of accounting estimates.
       Amendment to PSAK No. 46, “Income Taxes” regarding deferred taxes related to assets and liabilities
          arising from single transactions.




                                                                                                             12
Page 109
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

2. MATERIAL ACCOUNTING POLICY INFORMATION (Continued)

   b. Principles of Consolidation

      The Group applies PSAK No. 65 “Consolidated Financial Statements”. The consolidated financial
      statements incorporate all subsidiaries controlled by the Company. Control was obtained when the
      Company (investor) is exposed or has rights to variable returns from its involvement with the investee and
      has the ability to affect those returns through its power over the investee.

      Therefore, the investor controls the investee if, and only if, it has all of the following:
      (a) power over the investee ;
      (b) exposure or rights to variable returns from its involvement with the investee ; And
      (c) the ability to use its power over the investee to influence the amount of the investor’s returns.

      Investee is consolidated from the date the investor obtains control of investee and continues to be
      consolidated until the date that such control ceases..

      Non-controlling interest represents a portion of the profit or loss and net assets not attributable to the
      parent and is presented separately in the consolidated statements of profit or loss and other
      comprehensive income, and within equity in the consolidated statements of financial position, separately
      from equity attributable to the parent.

      All other comprehensive income is attributed to the owners of the parent and to the non-controlling
      interests even if this results in the non-controlling interests having a deficit balance.

      Changes in a parent’s ownership interest in a subsidiary that do not result in a loss of control are
      accounted for as equity transactions, in which the carrying amount of the controlling and non-controlling
      interests are adjusted to reflect the changes in their relative interests in the subsidiary. The difference
      between the amount by which the non-controlling interests are adjusted and the fair value of the
      consideration paid or received is recognized directly in equity and attributed to the owners of the parent.

      All significant intercompany transactions and balances have been eliminated.

      If a parent entity loses control of a subsidiary, then the parent:
      (a) derecognizes the assets (including goodwill) and liabilities of the former subsidiary from the
            consolidated statements of financial position.
      (b) recognize any investment retained in the former subsidiary at its fair value at the date when control is
            lost, and subsequently accounts for it and for any amounts owed by or to the former subsidiary. That
            fair value shall be regarded as the fair value on initial recognition of a financial asset or, if appropriate,
            the cost on initial recognition of an investment in an associate or joint venture.
      (c) recognize the gain or loss associated with the loss of control attributable to the former controlling
            interest.




                                                                                                                       13
Page 110
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

2. MATERIAL ACCOUNTING POLICY INFORMATION (Continued)

   c. Cash

      Cash consist of cash on hand and in banks, and not pledged as collateral or restricted in use.

   d. Inventories

      The Group applies PSAK No. 14 “Inventory”. Inventories are valued at the lower of cost or net realizable
      value. Net realizable value is the estimated selling price in the normal course of business less the
      estimated costs of completion and the estimated costs required for the sale.

      Cost is determined using the weighted average method. Allowance for inventory obsolescence is provided
      based on a review of the condition of inventories at the end of the reporting period.

   e. Prepaid expenses

      Prepaid expenses are amortized over the periods benefited using the straight-line method.

   f. Investment in Associated Entities

      The Group applies PSAK No. 15 “Investment in associates and joint ventures”. An associated entity is an
      entity over which the Group has significant influence and is not a subsidiary or participating part in a joint
      venture. Ownership, directly or indirectly, of 20% or more of an investee’s voting rights is considered
      ownership of significant influence, unless it can be clearly proven to the contrary.

      Investments in associates are accounted for using the equity method, where they are initially recognized at
      cost. Furthermore, the Group’s share of the profit or loss of the associate, after any necessary adjustments
      for the effects of uniform accounting policies and elimination of profits or losses resulting from transactions
      between the Group and the associate, will increase or decrease the carrying amount of the investment and
      be recognized as profit or loss of the Group. Receipt of distributions from associates reduces the carrying
      amount of the investment.

      Adjustments to the carrying amount are also required if there is a change in the proportion of the Group’s
      share of the associated entity arising from other comprehensive income of the associated entity. The
      Group’s share of such changes is recognized in other comprehensive income of the Group.

      Goodwill related to the acquisition of an associate is included in the carrying amount of the investment. If
      there is negative goodwill, then the amount is recognized in profit or loss. Goodwill is not amortized and is
      tested for impairment annually.

      If the carrying value of an investment has reached zero, further losses will be recognized only if the Group
      has a commitment to provide funding assistance or guarantee the obligations of the associated entity
      concerned.




                                                                                                                  14
Page 111
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

2. MATERIAL ACCOUNTING POLICY INFORMATION (Continued)

      If an investment in an associate becomes an investment in a joint venture or vice versa, then the entity
      continued to apply the equity method and did not remeasure the remaining interest.

      Changes in investment value caused by changes in the value of equity in the associated entity arising from
      capital transactions in the associated entity with third parties are recognized as other comprehensive
      income and will be recognized as income or expense when the investment in question is disposed of.

   g. Fixed assets

      The Group applies PSAK No. 16 “Fixed Assets”. The Group had chosen the cost model as the accounting
      policy for its fixed assets measurement. Depreciation is calculated on a straight-line method over the useful
      lives of the assets. Estimated useful lives of the assets are as follows:

                                                        Estimated Useful Life                 Percentage
      Building                                                  20 years                         5%
      Vehicle                                                    8 years                        12.5%
      Office equipment                                       4 and 8 years                 25.0% and 12.5%
      Network infrastructure                                    8 years                         12.5%

      The fixed assets’ useful lives and methods of depreciation are reviewed, and adjusted if appropriate, at
      each end of reporting period.

      Land is stated at cost and is not depreciated.

      ISAK No. 25, “Land Rights”, stipulates that the costs of legal processing of land rights in the form of
      Business Use Rights (“HGU”), Building Use Rights (“HGB”) and Use Rights (“HP”) when land is first
      acquired are recognized as part of the land acquisition cost in the “Fixed Assets” account and is not
      amortized. Meanwhile, processing costs for the extension or legal renewal of land rights in the form of
      HGU, HGB and HP are recognized as part of the “Deferred Expenses - Net” account in the consolidated
      statement of financial position and are amortized over the shorter of the legal life and economic life of the
      land.

      Repair and maintenance expenses are charged to profit or loss when incurred; Significant replacement or
      inspection costs are capitalized when incurred and when it is probable that future economic benefits
      relating to the asset will flow to the Group, and the cost of the asset can be measured reliably. Fixed
      assets are derecognized when they are disposed of or when no future economic benefits are expected
      from their use or disposal. Gains or losses arising from derecognition of an asset are included in profit or
      loss in the period the asset is derecognised.




                                                                                                                 15
Page 112
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

2. MATERIAL ACCOUNTING POLICY INFORMATION (Continued)

   h. Decrease in the Value of Non-Financial Assets

        The Group applies PSAK No. 48 “Impairment of Asset Value”. At the end of each reporting period, the
        Group assesses whether there are indications that assets are impaired. If there is such an indication, the
        Group estimates the recoverable amount of the asset. The recoverable amount of an asset or cash-
        generating unit is the higher of its fair value less costs of disposal and its value in use. If the recoverable
        amount of an asset is less than its carrying amount, then the carrying amount of the asset is reduced in
        value to its recoverable amount. An impairment loss is recognized immediately in profit or loss.

        A reversal of an impairment loss for a non-financial asset is recognized if, and only if, there has been a
        change in the estimates used in determining the asset’s recoverable amount since the last impairment test
        was recognized. Reversal of an impairment loss is recognized immediately in profit or loss, unless the
        asset is presented at a revalued amount.

   i.   Transactions with Related Parties

        The Group discloses transactions with related parties based on PSAK No. 7 “Related Party Disclosures”.
        A party is considered related to the Group if:
        1) The person or immediate family member has a relationship with the reporting entity if the person:
            (i) has control or joint control over the reporting entity;
            (ii) has significant influence over the reporting entity; or
            (iii) key management personnel of the reporting entity or the reporting entity’s parent entity.
        2) An entity is related to the reporting entity if it fulfills one of the following:
            (i) The entity and the reporting entity are members of the same business group (meaning the parent
                   entity, subsidiary entity and subsequent subsidiaries are related to another entity).
            (ii) One entity is an associated entity or joint venture of another entity (or an associated entity or joint
                   venture that is a member of a business group, of which the other entity is a member).
            (iii) Both entities are joint ventures of the same third party.
            (iv) One entity is a joint venture of a third entity and the other entity is an associate entity of the third
                   entity.
            (v) The entity is a post-employment benefits program for employee benefits from one of the reporting
                   entities or an entity related to the reporting entity. If the reporting entity is the entity that organizes
                   the program, then the sponsoring entity is also related to the reporting entity.
            (vi) Entities controlled or jointly controlled by the person identified in number (1).
            (vii) The person identified in item (1)(i) has significant influence over the entity or key management
                   personnel of the entity (or the parent entity of the entity).
            (viii) The entity, or a member of a group of which the entity is part, provides key personal management
                   services to the reporting entity or to the parent entity of the reporting entity.

        All significant transactions with related parties are disclosed in the notes to the consolidated financial
        statements.




                                                                                                                           16
Page 113
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

2. MATERIAL ACCOUNTING POLICY INFORMATION (Continued)

   j.   Revenues and Expenses Recognition

        The Group recognizes revenues in accordance with PSAK No. 72, “Revenue from Contracts with
        Customers”, by performing transaction analysis through the five steps of revenue recognition model as
        follows:
        1) Identifying contracts with customers, where the Group records contracts with customers only if all of
             the following criteria are met:
              The contract has been agreed to by the parties to the contract.
              The Group can identify the rights of the parties and payment terms for the goods to be transferred.
              The contract has commercial substance.
              It is likely that the Group will receive compensation for the goods transferred.
        2) Identify performance obligations in the contract.
        3) Determine the transaction price.
        4) Allocate the transaction price to each performance obligation.
        5) Recognize revenue when performance obligations have been fulfilled (at a certain time or over time).

        Expenses are recognized when they occur (accrual basis).

   k. Income tax

        The Group applies PSAK No. 46 “Income Tax”. Current tax expense is determined based on the estimated
        taxable profit for the current period.

        Income tax in the current period’s profit and loss consists of current and deferred taxes. Income tax is
        recognized in profit or loss, except for transactions related to transactions recognized directly in equity or
        other comprehensive income, in which case it is recognized in equity or other comprehensive income.

        Current tax assets and current tax liabilities are offset if, and only if, the entity has a legally enforceable
        right to offset the recognized amounts; and has the intention to settle on a net basis, or realize the asset
        and settle the liability simultaneously.

        Deferred tax assets and liabilities are recognized for temporary differences between assets and liabilities
        for commercial purposes and for tax purposes at each reporting date. Deferred tax assets are recognized
        for all deductible temporary differences to the extent that it is probable that the deductible temporary
        differences can be utilized to reduce fiscal profit in the future. Future tax benefits, such as unused fiscal
        loss balances, are recognized to the extent that it is probable that the tax benefits will be realized.

        Deferred tax assets and liabilities are measured at the tax rates that are expected to be used in the period
        when the asset is realized or when the liability is settled based on the tax rates (and tax regulations) that
        are in effect or substantially enacted at the end of the reporting period.




                                                                                                                    17
Page 114
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

2. MATERIAL ACCOUNTING POLICY INFORMATION (Continued)

        Deferred tax assets and deferred tax liabilities are offset if, and only if, the entity has the legal right to offset
        current tax assets against current tax liabilities, and deferred tax assets and deferred tax liabilities relate to
        income taxes imposed by tax authorities on taxable entity, the same or a different taxable entity that
        intends to recover current tax assets and liabilities on a net basis, or realize assets and settle liabilities
        simultaneously, in any future period in which a significant amount of deferred tax assets or liabilities is
        expected to be settled or restored.

        Changes to tax obligations are recognized when the tax assessment is received and/or, if the Group
        submits an objection and/or appeal, when the decision on the objection and/or appeal has been
        determined.

   l.   Transactions and Balances in Foreign Currency

        The Group applies PSAK No. 10 “Effect of Changes in Foreign Exchange Rates”. Transactions in foreign
        currency are translated into functional currency at the exchange rate in effect at the time the transaction is
        made. At the end of the reporting period, monetary assets and liabilities denominated in foreign currency
        are adjusted into the functional currency using the middle rate determined by Bank Indonesia on the last
        date of banking transactions in that period. Gains or losses arising from exchange rate adjustments or
        settlement of monetary assets and liabilities in foreign currencies are credited or charged to profit or loss
        for the current period.

        The closing exchange rate used on December 31, 2023 and 2022 against 1USD is Rp15,416 and
        Rp15,916, respectively.

   m. Financial Instruments

        The Group applies PSAK No. 71 “Financial Instruments”. The Group recognizes financial assets and
        liabilities in the consolidated statement of financial position if, and only if, the Group is a party to the
        contractual provisions of the financial instrument.

        1. Financial Assets

            The Group classifies its financial assets in the following categories:
             measured at amortized cost; And
             measured at fair value through other comprehensive income or measured through profit or loss.

            This classification depends on the Group’s business model and cash flow contractual requirements.

            a) Financial assets are measured at amortized cost

                 This classification applies to debt instruments that are managed in a business model held for cash
                 flow and have cash flows that meet the criteria “solely from principal and interest payments”.




                                                                                                                          18
Page 115
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

2. MATERIAL ACCOUNTING POLICY INFORMATION (Continued)

             At initial recognition, trade receivables that do not have a significant funding component are
             recognized at the transaction price. Other financial assets are initially recognized at fair value less
             related transaction costs. These financial assets are then measured at amortized cost using the
             effective interest rate method. Gains or losses on retirement or modification of financial assets
             carried at amortized cost are recognized in profit or loss.

         b) Financial assets are measured at fair value through other comprehensive income

             This classification applies to the following financial assets:

             (i) Debt instruments managed with a business model that aims to own financial assets in order to
                 obtain contractual cash flows and sell and where the cash flows meet the criteria “solely from
                 principal and interest payments”.

                Changes in the fair value of these financial assets are recorded in other comprehensive
                income, except for the recognition of impairment gains or losses, interest income (including
                transaction costs using the effective interest rate method), gains or losses arising from
                derecognition, and gains or losses from foreign exchange differences are recognized on profit
                and loss.

                When a financial asset is derecognised, the cumulative fair value gain or loss previously
                recognized in other comprehensive income is reclassified to profit or loss.

             (ii) Equity investments for which the Group has irrevocably elected to present fair value gains and
                  losses from revaluation in other comprehensive income.

                Options may be based on individual investments, however, they do not apply to equity
                investments held for trading. Fair value gains or losses from revaluation of equity investments,
                including the foreign exchange component, are recognized in other comprehensive income.
                When an equity investment is derecognised, fair value gains or losses previously recognized in
                other comprehensive income are not reclassified to profit or loss. Dividends are recognized in
                profit or loss when the right to receive payment has been established.

         c) Financial assets are measured at fair value through profit or loss

             This classification applies to the following financial assets, where in all cases transaction costs are
             charged to profit or loss:
             (i) Debt instruments that do not have amortized cost or fair value through other comprehensive
                  income criteria. Fair value gains or losses will then be recorded in profit or loss.
             (ii) Equity investments held for trading or for which other comprehensive income options do not
                  apply. Fair value gains or losses and related dividend income are recognized in profit or loss.




                                                                                                                 19
Page 116
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

2. MATERIAL ACCOUNTING POLICY INFORMATION (Continued)

         A financial asset is derecognized when the contractual rights to cash flows from the financial asset
         have expired or have been transferred and the Group has transferred substantially all the risks and
         rewards of ownership of the asset. Upon derecognition of a financial asset, the difference between the
         carrying amount and the consideration received is recognized in profit or loss.

         Decrease in the Value of Financial Assets

         A review of expected future credit losses is required for: debt instruments measured at amortized cost
         or measured at fair value through other comprehensive income and trade receivables that do not
         provide an unconditional right to receive consideration.

         The Group recognizes a provision for impairment losses for expected credit losses on financial assets
         measured at amortized cost. Provision for impairment losses on trade receivables is measured at an
         amount equal to the expected credit loss over its life. Lifetime expected credit loss is the expected
         credit loss resulting from all possible default events over the expected life of a financial instrument.

         When determining whether the credit risk of a financial asset has increased significantly since initial
         recognition and when estimating expected credit losses, the Group considers relevant information that
         is reasonable and verifiable and available without undue expense or effort. It includes quantitative and
         qualitative information and analysis, based on the Group’s historical experience and credit
         assessments and includes forward-looking information.

         The Group considers a financial asset to be in default when a customer is unable to pay its credit
         obligations to the Group in full. The maximum period considered when estimating expected credit
         losses is the maximum contractual period over which the Group is exposed to credit risk.

         Expected credit loss is a probability-weighted estimate of credit loss. Credit losses are measured as
         the present value of all cash receipt shortfalls (i.e. the difference between the cash flows owed from an
         entity under the contract and the cash flows it is expected to receive). Expected credit losses are
         discounted at the effective interest rate of the financial asset.

      2. Financial Liabilities

         At initial recognition, the Group measures financial liabilities at fair value plus or minus transaction
         costs directly related to the acquisition or issuance of the financial liability. The Group classifies all its
         financial liabilities into the category of financial liabilities measured at amortized cost.

         After initial recognition, financial liabilities are subsequently measured at amortized cost using the
         effective interest rate method. Gains or losses are recognized in profit or loss when the financial
         liability is derecognized or impaired, and through the amortization process.




                                                                                                                    20
Page 117
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

2. MATERIAL ACCOUNTING POLICY INFORMATION (Continued)

          The Group excludes financial liabilities from its consolidated statement of financial position if, and only
          if, the obligations specified in the contract are discharged or canceled or expire. The difference
          between the carrying amount of financial liabilities that expire or are transferred to another party, and
          the consideration paid, including non-cash assets transferred or liabilities assumed is recognized in
          profit or loss.

      3. Offsetting of Financial Instruments

          Financial assets and financial liabilities are offset and the net amount is reported in the consolidated
          statement of financial position if, and only if, they currently have a legally enforceable right to set off
          the recognized amount and there is an intention to settle it on a net basis, or to realize the asset and
          settle its obligations simultaneously.

   n. Fair Value Measurement

      The Group applies PSAK No. 68 “Fair Value Measurement”. The fair value of financial instruments traded
      in an active market at each reporting date is determined by reference to market price quotations or
      securities dealer price quotations (bid price for buy positions and ask price for sell positions), excluding any
      deductions for transaction costs.

      For financial instruments that do not have an active market, fair value is determined using valuation
      techniques. Valuation techniques include the use of recent market transactions carried out fairly by willing
      and understanding parties (recent arm’s length market transactions), the use of recent fair values of other
      instruments that are substantially the same, discounted cash flow analysis, or other valuation models.

   o. Employee Benefits

      Short Term Employee Benefits

      Short-term employee benefits are compensation provided by the Group such as salaries, allowances,
      bonuses and pension benefit payments, which are recognized when they are owed to employees.

      Post-Employment Benefits

      On February 2 2021, the Government promulgated and enforced Government Regulation no. 35 of 2021
      (PP 35/2021) to implement the provisions of Article 81 and Article 185(b) of Law no. 11/2020 concerning
      Job Creation, which aims to create as many job opportunities as possible for the Indonesian people
      equally, in order to fulfill a decent life. PP 35/2021 regulates outsourcing agreements, working time, rest
      time and termination of employment, which can affect the minimum compensation benefits that must be
      paid to employees. PSAK No. 24 requires entities to use the “ Projected Unit Credit “ method to determine
      the present value of defined benefit obligations, related current service costs and past service costs.

      When the Group has a surplus under its defined benefit plan, the Group measures its defined benefit
      assets at the lower of the defined benefit plan surplus and the asset ceiling determined using a discount
      rate.


                                                                                                                   21
Page 118
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

2. MATERIAL ACCOUNTING POLICY INFORMATION (Continued)

      The Group recognizes the cost component of defined benefits, unless SAK requires or permits such costs
      as asset acquisition costs, as follows:
      (a) service costs in profit and loss;
      (b) net interest on net defined benefit liabilities (assets) in profit or loss; and
      (c) remeasurement of the net defined benefit liability (asset) in other comprehensive income.

      Remeasurement of the net defined benefit liability (asset) recognized in other comprehensive income is not
      reclassified to profit or loss in the following period. However, the Group may transfer the amount
      recognized as other comprehensive income to other items in equity.

      Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. Service
      costs consist of current service costs and past service costs, curtailment gains and losses and non-routine
      settlements, if any. Net interest expense or income, and service costs are recognized in profit or loss.

      The Group recognizes past service costs as an expense at the earlier of the date when the plan
      amendment or curtailment occurs and when the Group recognizes the related restructuring costs or
      severance pay. The Group recognizes gains or losses on settlement of defined benefit plans when
      settlement occurs.

      A curtailment occurs when the Group significantly reduces the number of employees covered by a plan, or
      changes the terms of a defined benefit plan so that a significant element of the future service of current
      employees will no longer be eligible for benefits, or will be eligible only for reduced benefits.

   p. Rent

      The Group applies PSAK No. 73, “Rent”.

      Group as Tenant

      The Group applies a single recognition and measurement approach for all leases, except for short-term
      leases and leases of low-value assets. The Group recognizes a lease liability to make lease payments and
      a right-of-use asset representing the right to use the underlying asset.

      Right-of-Use Assets

      Right-of-use assets are measured at cost, less accumulated depreciation and impairment. The cost of a
      right-of-use asset includes the measured amount of the lease liability, initial direct costs incurred by the
      lessee, and lease payments made on or before the commencement date, less any rental incentives
      received. Right-of-use assets are depreciated over the shorter of the useful life of the right-of-use asset or
      the lease term.




                                                                                                                  22
Page 119
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

2. MATERIAL ACCOUNTING POLICY INFORMATION (Continued)

      Rental Liabilities

      Lease liabilities are measured at the present value of outstanding rental payments. Each rental payment is
      allocated between the portion of the liability settlement and the finance costs. Lease liabilities are
      presented as long-term liabilities except for the portion due in 12 months or less which is presented as
      short-term liabilities. The interest element in finance costs is charged to profit or loss over the lease term
      resulting in a constant interest rate on the balance of the liability.

      The Group does not recognize right-of-use assets and lease liabilities for:
       short-term rentals that have a lease term of 12 months or less; or
       leases whose assets are of low value. Payments made for the lease are charged to profit or loss on a
         straight-line basis over the lease term.

      Group as Lessor

      If the Group has assets that are leased under a finance lease, the present value of the lease payments is
      recognized as a receivable. The difference between the gross receivables value and the present value of
      the receivables is recognized as deferred finance lease income. Rental income is recognized over the
      lease term using the net investment method which reflects a constant periodic rate of return.

      If an asset is leased under an operating lease, the asset is presented in the statement of financial position
      according to the nature of the asset. Rental income is recognized as income on a straight-line basis over
      the lease term.

   q. Segment Information

      The Group applies PSAK No. 5 “Operating Segments”. The Group discloses information that enables
      users of financial statements to evaluate the nature and financial impact of business activities and uses a
      “management approach” in presenting segment information using the same basis as internal reporting.
      Operating segments are reported in a manner consistent with internal reporting submitted to operational
      decision makers. In this case, the operational decision maker who makes strategic decisions is the Board
      of Directors.

   r. Profit or Loss per Share

      The Group applies PSAK No. 56 “Earnings per Share”. Basic earnings or loss per share is calculated by
      dividing the profit or loss attributable to ordinary shareholders of the parent entity, by the weighted average
      number of ordinary shares outstanding, in a period.




                                                                                                                  23
Page 120
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

3. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS

   The preparation of consolidated financial statements, in accordance with Indonesian Financial Accounting
   Standards, requires management to make estimates and judgments that affect the amounts reported in the
   consolidated financial statements. Due to the inherent uncertainty in making estimates, actual results reported
   in the future may differ from the amounts estimated.

   The Group bases its estimates and judgments on the parameters available at the time the consolidated
   financial statements were prepared. The situation regarding future developments may change due to market
   changes or circumstances beyond the Group’s control. Such changes are reflected in the relevant
   considerations at the time they occur.

   The following estimates and judgments made by management in the context of applying the Group’s
   accounting policies have the most significant influence on the amounts recognized in the consolidated financial
   statements:

   Classification of financial assets and financial liabilities

   The Group determines the classification of certain assets and liabilities as financial assets and financial
   liabilities by considering whether the definitions set out in PSAK No. 71 fulfilled. Thus, financial assets and
   financial liabilities are recognized in accordance with the Group’s accounting policies as disclosed in Note 2.

   Determining the fair value and calculation of financial instruments

   The Group records certain financial assets and liabilities at fair value through profit or loss and at amortized
   cost, which requires the use of accounting estimates. While the significant components of fair value
   measurements and assumptions used in the calculation of amortized cost are determined using verifiable
   objective evidence, the fair value or amortization amounts may differ if the Group uses different valuation
   methodologies or assumptions. These changes may directly affect the Group’s profit and loss. A more detailed
   explanation is disclosed in Note 34.

   Assess the recoverable amount of non-financial assets

   Allowance for decline in market value and obsolescence of inventory is estimated based on available facts and
   situations, including but not limited to, physical condition of inventory held, market selling price, estimated
   completion costs and estimated costs incurred for sales. The allowance is re-evaluated and adjusted if
   additional information becomes available that affects the estimated amount. A more detailed explanation is
   disclosed in Note 7.

   The recoverable amount of fixed assets is based on estimates and assumptions specifically regarding market
   prospects and cash flows related to the assets. Estimates of future cash flows include estimates regarding
   future income. Any changes in these estimates may have a material impact on the measurement of the
   recoverable amount and could result in adjustments to the recorded allowance for impairment. A more detailed
   explanation is disclosed in Note 10.




                                                                                                                24
Page 121
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

3. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS (Continued)

   Provision for impairment losses on receivables

   The Group evaluates certain receivable accounts for which it is aware that certain customers are unable to
   meet their financial obligations. In such cases, the Group uses judgment, based on available facts and
   circumstances, including but not limited to, the length of the relationship with the customer and the credit status
   of the customer based on available third party credit records and known market factors, to record specific
   provisions. on customers towards the amount owed in order to reduce the amount of receivables that the
   Group is expected to receive. This specific allowance is re-evaluated and adjusted if additional information
   received affects the amount of the allowance for impairment of receivables. Further explanation is disclosed in
   Note 5.

   Determine the depreciation method and estimate the useful life of fixed assets

   The cost of fixed assets is depreciated using the straight-line method based on their estimated useful lives.
   Management estimates the useful life of fixed assets of 4 years to 20 years. These are the age expectations
   generally applied in the industries in which the Group conducts business. Changes in usage levels and
   technological developments may affect the useful life and residual value of assets, and therefore future
   depreciation charges may be revised. A more detailed explanation is disclosed in Note 10.

   Estimated employee benefits expenses and liabilities

   Determining the liability and expense for Group employee benefits depends on the selection of assumptions
   used in calculating such amounts. These assumptions include, among others, discount rates, salary increase
   rates, resignation rates, disability rates, retirement age and mortality rates. Actual results that differ from the
   Group’s assumptions are immediately recognized in profit or loss when they occur. While the Group believes
   that these assumptions are reasonable and appropriate, significant differences in actual results or significant
   changes in the Group’s assumptions could materially affect employee benefits liabilities and expenses. Further
   explanation is disclosed in Note 19.

   Determining income tax

   Significant considerations are made in determining the provision for corporate income tax. There are certain
   transactions and calculations where the final tax determination is uncertain during normal business activities. In
   certain situations, the Group cannot determine the exact amount of its current or future tax liabilities due to
   audit processes by tax authorities. The Group recognizes a liability for expected corporate income tax based
   on its estimate of whether additional corporate income tax will be due. A more detailed explanation is disclosed
   in Note 20.

   Deferred tax assets are recognized when it is probable that taxable profit will be available. Significant estimates
   by management are required in determining the amount of deferred tax assets that can be recognized, based
   on the timing of use and level of taxable profit and future tax planning strategies. However, there is no certainty
   that the Group will generate sufficient taxable profit to allow the use of part or all of the deferred tax assets. A
   more detailed explanation is disclosed in Note 20.




                                                                                                                    25
Page 122
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

4. CASH

   This account consists of:

                                                                       December 31, 2023       December 31, 2022
   Cash
    Rupiah                                                                      25.152.325              100.091

   Cash in bank
   Rupiah
    PT Bank Mandiri (Persero) Tbk                                            4.975.468.882         3.088.171.656
    PT Bank Central Asia Tbk                                                 3.830.354.965         9.044.197.167
    PT Bank Rakyat Indonesia (Persero) Tbk                                     511.860.186         1.031.483.976
    PT Bank Permata Tbk                                                          1.067.500                     -
   US Dollar
    PT Bank Central Asia Tbk                                                    96.592.925            14.535.279
   Sub-Total                                                                 9.415.344.458        13.178.388.078
   Total                                                                     9.440.496.783        13.178.488.169

   All cash is placed with third parties and is not used as collateral or restricted in use.


5. TRADE RECEIVABLE

   This account consists of:

                                                                       December 31, 2023       December 31, 2022
   Third Parties
     PT Comtronics Systems                                                     461.626.709           184.781.207
     CV Bina Manunggal Sejati                                                  300.505.499
     PT Media Andalan Nusa                                                     340.967.614           105.553.250
     PT Total Info Kharisma                                                    219.228.175           265.524.250
     PT Sumber Alfaria Trijaya Tbk                                             296.925.321           254.245.500
     Information and Communications Department
       DKI Jakarta Province Statistics                                                     -       3.799.111.641
     PT Wasantara Network Services                                                         -         467.459.000




                                                                                                               26
Page 123
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

5. TRADE RECEIVABLE (Continued)

                                                                 December 31, 2023            December 31, 2022
     Yayasan BPK Penabur KPS
       Jakarta                                                                     -                382.395.000
     Others (under IDR 200 million)                                    3.001.690.521              1.939.321.467
   Total Third Parties                                                 4.620.943.840               7.398.391.315
   Allowance for losses on impairment                                 (1.126.165.516)             (1.486.708.985)
   Third Parties - Net                                                 3.494.778.324              5.911.682.330

   Related Parties (Note 33)                                           2.804.922.142              3.093.057.662
   Allowance for losses on
     impairment                                                       (1.367.555.485)             (1.084.173.218)
   Related Parties - Net                                               1.437.366.657              2.008.884.444
   Total                                                               4.932.144.981              7.920.566.774

   Details of the aging of trade receivables are as follows:

                                                                 December 31, 2023            December 31, 2022
   Not yet due                                                             9.918.935              3.824.270.010
   It's due but it's not
      experience impairment:
      1 - 30 days                                                      3.957.911.563              3.429.281.775
      31 - 60 days                                                       451.849.366                337.156.403
      61 - 90 days                                                       125.762.098                253.465.635
      More than 90 days                                                  386.703.019                 76.392.951
   Has matured and experienced
      impairment                                                       2.493.721.001              2.570.882.203
   Total                                                               7.425.865.982             10.491.448.977

   Movements in the allowance for losses on impairment of trade receivables are as follows:

                                                                 December 31, 2023            December 31, 2022
   Beginning of year balance                                           2.570.882.203              1.949.457.396
   Addition                                                            1.001.330.434                621.424.807
   Recovery                                                             (779.729.785)                         -
   End of Year Balance                                                 2.792.482.852              2.570.882.203




                                                                                                               27
Page 124
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

5. TRADE RECEIVABLE (Continued)

   Based on the results of management’s evaluation, the allowance for losses from impairment of trade
   receivables is sufficient to cover losses from uncollectible trade receivables.

   All trade receivables are denominated in Rupiah and are not used as collateral for debts.


6. OTHER RECEIVABLES

   a. Current assets

                                                                  December 31, 2023            December 31, 2022
       Third Parties
         PT Netco Trans Nusa                                              900.000.000                          -
         PT Anchor Putra Indonesia                                        307.000.000                          -
         CV Bina Manunggal Sejati                                          97.000.000                          -
         Others (under Rp100 million)                                      66.009.835                  4.500.000
       Total                                                            1.370.009.835                  4.500.000

       Other receivables from PT Fiber Media Indonesia as of October 31, 2023 are long-term receivables with a
       maturity of 1 year (Note 6b) so they are presented as current assets.

       Other receivables from PT Netco Trans Nusa represent a loan for working capital amounting to
       Rp900,000,000 with a term of 6 months with a return of 25%.

       Other receivables from PT Jangkar Putra Indonesia are loans provided without collateral with a total of
       Rp307,000,000 and bear interest of 11% with a repayment period of 17 months starting from January 17,
       2024 - May 17, 2025.

       Other receivables from CV Bina Manunggal Sejati are loans provided without collateral and bear interest of
       11% with an amount of Rp1,000,000,000 for a period of 10 months from January 15 - November 15, 2023.
       In November 2023, receivables This has been paid in full.




                                                                                                               28
Page 125
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

6. OTHER RECEIVABLES (Continued)

   b. Non-Current Assets

                                                                December 31, 2023         December 31, 2022
      Third Parties
        PT Fajar Mitra Krida                                            250.000.000               250.000.000
        PT Fiber Teknologi Indonesia                                     73.492.261                73.492.261
        Others (under Rp100 million)                                    139.482.924               139.482.924
      Total Third Parties                                               462.975.185               462.975.185
      Allowance for losses on
        impairment                                                     (462.975.185)                         -
      Third Party - Net                                                             -             462.975.185

      Related Parties (Note 33)
       PT Fiber Media Indonesia                                       3.707.674.348              4.707.674.348
       PT Indonesian Fiber Network                                                -                 40.855.556
      Total Related Parties                                           3.707.674.348              4.748.529.904
      Net                                                             3.707.674.348              5.211.505.089

      Movements in the allowance for losses on impairment of other receivables are as follows:

                                                                December 31, 2023         December 31, 2022
      Beginning of year balance                                                   -                          -
      Addition                                                          462.975.185                          -
      End of Year Balance                                               462.975.185                          -

      PT Fajar Mitra Krida receivables are loans provided without interest, collateral and payment terms. On
      December 31, 2023, the entire value of these receivables has been provided for impairment.

      Receivables from PT Fiber Media Indonesia (FMI) are loans provided without collateral and bear interest of
      10.5% with a loan repayment period of up to October 2024. On December 31, 2023, the balance of FMI’s
      receivables is presented as current assets.

      Receivables from PT Solusi Aplikasi Andalan Semesta are loans provided without collateral and bear
      interest of 11% with a loan repayment period of 5 years.




                                                                                                             29
Page 126
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

7. INVENTORIES

   Inventories consist of spare parts, cables and poles with balances as of December 31, 2023 and 2022
   amounting to Rp12,124,390,559 and Rp12,276,461,206, respectively.

   On October 14, 2023, the Group’s storage warehouse located in Cibubur experienced a fire and caused the
   entire cable inventory to burn, so the Group wrote off the cable inventory and the loss on the write-off of
   inventory was recorded in the Other Expenses account (Note 31). As of the completion date of the
   consolidated financial statements, the Group is in the process of submitting a claim to the insurance company.

   Based on management’s evaluation, an allowance for losses on decline in inventory value is not necessary
   because there is no obsolete inventory.

   The Group has insured inventory in one package with fixed assets (Note 10).


8. PREPAIRED EXPENSES AND ADVANCES

   This account consists of:

                                                                 December 31, 2023         December 31, 2022
   Prepaid Expenses
     Rent                                                                192.617.270             2.107.511.833
     Insurance                                                           150.491.104                         -
   Total                                                                 343.108.374             2.107.511.833



   Advances
    Professional services                                                801.641.024                        -
    Purchase of supplies                                               5.647.500.000              100.000.000
    Shophouse purchase                                                   979.000.000                        -
    Land purchase                                                        200.000.000                        -
    Etc                                                                   98.175.000                        -
   Total                                                               7.726.316.024              100.000.000

   Prepaid rent represents the rental of buildings and land for the placement of the Company’s
   telecommunications network equipment.

   Advances for professional services represent advances for supporting professional services paid by the
   Company in connection with the Company planned Initial Public Offering of Shares.




                                                                                                              30
Page 127
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

8. PREPAIRED EXPENSES AND ADVANCES (Continued)

   The down payment for purchases consists of:
   a. advance payment for inventory purchases amounting to Rp4,710,000,000 to PT Quinsis Lintas Mitra; And
   b. advance payment for the purchase of land amounting to Rp200,000,000 for the purchase of 4 plots of
      vacant land with a total area of 6,504 m2 consisting of:
      1. Certificate of Ownership Number 5872/Jatiasih with a land area of 517 m2;
      2. Certificate of Ownership Number 5873/Jatiasih, land area 482 m2 ;
      3. Certificate of Ownership Number 5874/Jatiasih, land area 3,985 m2; And
      4. Certificate of Ownership Number 553/Jatiluhur, land area 1,520 m2
      which are all registered in the name of Suprapti which will be changed to be in the name of the Heirs and
      are located in Jatiasih Village, Bekasi based on the Sale and Purchase Agreement for Signs dated
      June 26, 2023 between the Company and Adi Nugraha, Ratri Lestari Handayani, Pitri Indriani and Aditya
      Ariwibawa as experts inheritance from Suprapti, a third party, of the land with a purchase value of
      Rp21,450,000,000.

   On the date of publication of the financial statements, the down payment for purchasing inventory was
   Rp4,710,000,000. has been fully realized, while management believes that the down payment for the purchase
   of land will be fully realized, so there is no need to make allowances for the decrease in the value of the down
   payment.


9. INVESTMENT IN ASSOCIATED ENTITIES

   a. Advances on Investment

                                                                   December 31, 2023         December 31, 2022
       PT Sentra Inovasi Prima                                            100.000.000                         -
       PT Jaringan Fiber Indonesia                                                  -               440.355.556
       PT Solusi Aplikasi Andalan Semesta                                           -                 1.000.000
       Total                                                              100.000.000               441.355.556


       PT Indonesia Fiber Network

       PT Network Fiber Indonesia (“JFI”) was established in the Republic of Indonesia based on Notarial Deed
       No. 11 by Nova Helida, SH, dated August 27, 2021 and has been ratified by the Minister of Law and
       Human Rights of the Republic of Indonesia in Decree No. AHU-0056749.AH.01. 01.TAHUN 2021 dated
       September 11, 2021 with the composition of shareholders as follows:
       a) PT Fiber Media Indonesia with 200 shares with a value of Rp200,000,000.
       b) Ferdi Agus Riyanto 1,300 shares with a value of Rp1,300,000,000.




                                                                                                                31
Page 128
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

9. INVESTMENT IN ASSOCIATED ENTITIES (Continued)

      c) The Company has 300 shares with a value of Rp300,000,000.
      d) PT PC 24 Cyber Indonesia with 200 shares with a value of Rp200,000,000.
      The total value of shares owned by the Company and PC 24 at the time of establishment was
      Rp500,000,000.

      Based on Notarial Deed No. 10 dated November 7, 2023 by Elizabeth Karina Leonita, SH., M.Kn., JFI
      shareholders took the decision to provide dispensation and ratification for the delay in fulfilling capital
      deposit obligations by JFI shareholders as contained in the Deed of Establishment No. 11 dated August 27,
      2021 made before Nova Helida, Notary in Tangerang. In connection with this, the Company records
      investment in JFI in the “Investment Advances” account.

      JFI operates in the fields of, among others: magnetic media and optical media construction;
      telecommunications equipment trade; as well as the field of information and communication. JFI will start
      its commercial business activities in 2022. JFI is domiciled in the city of Bekasi, West Java.

   b. Investment in Associated Entities

                                          Percentage                       Reclassification of                       Upper loss
                                          Ownership    Beginning balance    Down payment         Profit and (loss)     Release         Ending balance
                                              (%)       January 1, 2023       Investment           Investment        Investment       December 31, 2023
       PT Indonesian Fiber Network via:
        Company                            15,00%                     -         300.000.000           (25.864.850)               -         274.135.150
        Child entity                       10,00%                     -         200.000.000           (17.243.233)               -         182.756.767
       PT Broadband Network Indonesia      47,50%            47.500.000                   -                     -      (47.500.000)                  -
       Total                                                 47.500.000         500.000.000           (43.108.083)     (47.500.000)        456.891.917


                                          Percentage                       Reclassification of                       Upper loss
                                          Ownership    Beginning balance    Down payment         Profit and loss)      Release         Ending balance
                                              (%)       January 1, 2022       Investment           Investment        Investment       December 31, 2022
       PT Broadband Network Indonesia      47,50%            47.500.000                     -                    -                -         47.500.000



      Based on Notarial Deed No. 15 dated July 29, 2023 by Erick Maliangkay, SH, all shareholders of
      PT Broadband Network Indonesia (“BNI”), including the Company as shareholder of 47.5% of BNI, agreed
      to disband BNI because BNI no longer has business activities as of the date July 29, 2023, the Company
      recorded a loss on its investment in BNI amounting to Rp47,500,000 (Note 31).




                                                                                                                                                   32
Page 129
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

10. FIXED ASSETS

                                     Balance as of                                           Balance as of
                                    January 1, 2023        Addition        Deduction       December 31, 2023
   Acquisition Costs
   Direct ownership
     Land                               358.520.000        1.354.050.000               -       1.712.570.000
     Building                         2.504.064.000        6.628.607.642               -       9.132.671.642
     Vehicle                          9.031.666.775        7.878.304.857               -      16.909.971.632
     Office equipment                 3.568.236.849        2.514.640.441               -       6.082.877.290
     Network infrastructure          84.438.417.976       30.659.930.995               -     115.098.348.971
     Sub-Total                       99.900.905.600       49.035.533.935               -     148.936.439.535
   Assets in progress
     Building                                         -     647.500.000                -        647.500.000
   Total Acquisition Cost            99.900.905.600       49.683.033.935               -     149.583.939.535

   Accumulated depreciation
   Direct ownership
     Building                         1.084.423.267          343.261.384               -       1.427.684.651
     Vehicle                          4.347.373.446        1.461.083.751               -       5.808.457.197
     Office equipment                 2.531.730.303          922.219.321               -       3.453.949.624
     Network infrastructure          35.270.947.048       10.994.610.436               -      46.265.557.484
   Total Accumulated Depreciation    43.234.474.064       13.721.174.892               -      56.955.648.956
   Carrying Amount                   56.666.431.536                                           92.628.290.579



                                     Balance as of                                           Balance as of
                                    January 1, 2022        Addition        Deduction       December 31, 2022
   Acquisition Costs
   Direct ownership
     Land                               358.520.000                    -               -         358.520.000
     Building                         2.504.064.000                    -               -       2.504.064.000
     Vehicle                          7.109.553.810        1.922.112.965               -       9.031.666.775
     Office equipment                 3.023.288.641          544.948.208               -       3.568.236.849
     Network infrastructure          66.743.761.643       17.694.656.333               -      84.438.417.976
   Total Acquisition Cost            79.739.188.094       20.161.717.506               -      99.900.905.600

   Accumulated depreciation
   Direct ownership
     Building                           959.220.067          125.203.200               -       1.084.423.267
     Vehicle                          3.441.709.175          905.664.271               -       4.347.373.446
     Office equipment                 2.115.522.532          416.207.771               -       2.531.730.303
     Network infrastructure          20.267.188.846       15.003.758.202               -      35.270.947.048
   Total Accumulated Depreciation    26.783.640.620       16.450.833.444               -      43.234.474.064
   Carrying Amount                   52.955.547.474                                           56.666.431.536




                                                                                                          33
Page 130
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

10. FIXED ASSETS (Continued)

   Depreciation charges are as follows:

                                                                          2023                      2022
   Cost of revenue                                                    10.994.610.436            15.003.758.202
   General and administrative expenses                                 2.726.564.456             1.447.075.242
   Total                                                              13.721.174.892            16.450.833.444

   As of December 31, 2023 and 2022, there are no fixed assets that are not in temporary use and that have
   been retired from active use.

   As of December 31, 2023 and 2022, details of the gross carrying amount of fixed assets that have been fully
   depreciated and are still in use are as follows:

                                                                  December 31, 2023         December 31, 2022
   Network infrastructure                                             14.930.179.719             7.658.816.119
   Vehicle                                                             1.927.066.450             1.927.066.450
   Office equipment                                                    1.832.675.546             1.818.676.546
   Total                                                              18.689.921.715            11.404.559.115

   On December 31, 2023, the addition of fixed assets in the form of land and buildings, with a total of
   Rp8,167,657,642, is an addition to (i) the purchase of land and buildings by the Company from Christian
   Nugroho, a third party, worth Rp1,800,000,000 based on Sale and Purchase Deed No. 33 dated March 31,
   2023 with a land and building area of 235 m2 located in Cikopo Village, Bungursari District, Purwakarta
   Regency, West Java Province, with Building Use Rights Certificate (SHGB) No. 0336/Cikopo; (ii) purchase of
   land and buildings by the Company from Anton Bingah Kuntarjo, a third party, worth Rp2,850,000,000 based
   on Deed of Sale and Purchase No. 33 dated August 10, 2023 with a land area of 95 m2 located on Jalan
   Howitzer No. 9B RT 008 RW 006 Sumur Batu Village, Kemayoran District, DKI Jakarta Province, with SHGB
   No. 3201/Stone Wells; (iii) purchase of land by the Company from Sudiro, a third party, worth Rp550,000,000
   based on Deed of Sale and Purchase Agreement No. 2 dated August 29, 2023 with a land area of 910 m2
   located in Galala Village, North Oba District, Tidore Islands City, North Maluku Province, with Certificate of
   Ownership (SHM) No. 162/Galala in the name of Sudiro; (iv) purchase of land and buildings by PC 24 from
   PT Alindatama Saktib Rother, a third party, worth Rp850,000,000 based on Sale and Purchase Deed No. 19
   dated February 21, 2023 with a land and building area of 135 m2 located in Sukasari Village, Serang Baru
   District, Bekasi Regency, West Java Province, with SHGB No. 5878/Sukasari; and (v) costs related to the
   acquisition of the land and buildings mentioned above and office renovations amounting to Rp2,117,657,642.
   The additional land and building assets are intended for the Group’s operational offices.

   As of December 31, 2023 and 2022, additional fixed assets, in the form of vehicles, represent vehicle
   purchases through consumer finance lease debt (Note 16) and are used for operational activities.

   On September 21, 2023, the Group insured inventory and fixed assets, in the form of wifi network infrastructure
   and buildings, on an all-risk basis with PT Asuransi Bina Dana Arta Tbk, a third party, with a total insurance
   value of Rp38,226,433,824 with the insurance period starting September 18, 2023 to September 18, 2024.

                                                                                                               34
Page 131
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

10. FIXED ASSETS (Continued)

   As of December 31, 2023 and 2022, fixed assets, namely vehicles, have been insured against loss on an all-
   risk basis to several third parties with details of the insured value as follows:

                                                                        Insurance Coverage Value
                                                                  December 31, 2022   December 31, 2022
   PT Asuransi Raksa Pratikara                                           2.329.900.000                       -
   PT Maybank IndonesIa Finance                                          1.658.000.000                       -
   PT BCA Finance                                                        5.384.950.000             708.750.000
   ACA Insurance                                                           875.000.000                       -
   PT Mega Finance                                                         300.000.000             375.000.000
   PT Toyota Astra Finance Services                                                  -           1.422.500.000
   Total                                                                10.547.850.000           2.506.250.000

   Management believes that the insurance amount is sufficient to cover possible losses on the insured assets.

   Based on management’s evaluation, there are no events or changes in circumstances that indicate an
   impairment in the value of fixed assets.

   Fixed assets in the form of vehicles and land are used as collateral for short-term bank loans and consumer
   financing debts (Notes 13 and 16).


11. RIGHTS OF USE ASSETS

   The Group leases several assets including office space, land and buildings which have lease terms of between
   36 months and 56 months.

                                       Balance as of                                              Balance as of
                                      January 1, 2023        Addition           Deduction       December 31, 2023
   Acquisition Costs
    Office room                                     -       5.188.365.567                   -       5.188.365.567
    Network cable                                   -       5.419.201.000                           5.419.201.000
    Land and buildings                  3.075.558.888       1.885.170.000                   -       4.960.728.888
   Total Acquisition Cost               3.075.558.888      12.492.736.567                   -      15.568.295.455

   Accumulated depreciation
    Office room                                     -         347.256.474                   -         347.256.474
    Land and buildings                  1.039.445.277       1.470.857.611                   -       2.510.302.888
   Total Accumulated Depreciation       1.039.445.277       1.818.114.085                   -       2.857.559.362
   Carrying Amount                      2.036.113.611                                              12.710.736.093




                                                                                                                 35
Page 132
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

11. RIGHTS OF USE ASSETS (Continued)

                                        Balance as of                                                Balance as of
                                       January 1, 2022        Addition            Deduction        December 31, 2022
   Acquisition Costs
    Land and buildings                     266.670.000       2.808.888.888                     -       3.075.558.888

   Accumulated depreciation
    Land and buildings                      13.333.500       1.026.111.777                     -       1.039.445.277
   Carrying Amount                         253.336.500                                                 2.036.113.611

   Right-of-use assets in the form of office space based on a rental agreement with PT Mustika Ratu Center
   (Note 18).

   Rights of use assets in the form of land and buildings represent leases on land located in several areas in DKI
   Jakarta, Depok, South Tangerang, Bogor, Karawang and Cianjur which are used to place devices that connect
   or disconnect internet and communication networks to customers (PoP).


12. OTHER NON-CURRENT ASSETS

   This account represents a security deposit for the rental of office space at Graha Mustika Ratu based on a
   rental contract with PT Mustika Ratu Center (Note 18) with a balance on December 31, 2023 and 2022 of
   Rp241,043,430 and Rp123,662,390, respectively.


13. SHORT TERM BANK LOAN

   This account consists of:

                                                                  December 31, 2023           December 31, 2022
   Third party
   Current Account Loans (Overdraft)
     PT Bank Central Asia Tbk                                            10.543.051.223              189.770.927
     PT Bank OCBC NISP Tbk                                                2.059.663.413                        -
   Total                                                                 12.602.714.636              189.770.927

   PT Bank OCBC NISP Tbk

   On June 27, 2023, PT PC 24 Cyber Indonesia (“PC 24”) signed a Loan Agreement with PT Bank OCBC NISP
   Tbk (“OCBC”) as stated in Loan Agreement Deed No. 158 where OCBC approved the provision of a Current
   Account Credit Facility (“KRK”) to PC 24 with a maximum credit amount of Rp6,000,000,000 to be used for
   working capital needs. The term of the agreement is one year from the date of signing the loan agreement with
   a credit interest rate of 8.25%.



                                                                                                                 36
Page 133
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

13. SHORT TERM BANK LOAN (Continued)

   Collateral for credit facilities from OCBC is as follows:
   a. A plot of land measuring 63 m2 located on Jalan Petojo VIY I No. 22 RT.002/006, Cideng Village, Gambir
       District, Central Jakarta with SHM No. 1512/Cideng in the name of Budi Aditya Erna Mulyanto.
   b. A plot of land measuring 66 m2 located in Sukasari Village, Tangerang District, Banten with SHM No.
       4330/Sukasari in the name of Budi Aditya Erna Mulyanto.
   c. A plot of land measuring 54 m2 located at RT.017/06, Pasirsari Village, South Cikarang District, Bekasi,
       West Java with SHM No. 4482/Pasirsari in the name of Budi Aditya Erna Mulyanto.
   d. A plot of land measuring 135 m2 located in Kav. A.1-1, Sukasari Village, Serang Baru District, Bekasi, West
       Java with SHM No. 05878/Sukasari in the name of Budi Aditya Erna Mulyanto.

   Based on the agreement, PC 24 is not permitted to carry out the following activities without prior written
   approval from OCBC, among others, as follows:
   a. Make changes to the composition of shareholders and controlling parties (directly or indirectly), as well as
      the composition of the board of directors and board of commissioners.
   b. Liquidate or dissolve the Company or be involved in a merger, acquisition, consolidation and/or joint
      venture with another company.
   c. Reduce the Company’s paid-in capital.
   d. Pay dividends in any way to shareholders.
   e. Make payments on subordinated shareholder or guarantor loans.

   PC24 has received a waiver from OCBC regarding points a to d above in Letter No. 02/EXT/EMB/I/2024 dated
   January 18, 2024 with the provisions for points a to c with written approval from OCBC, while for point d, prior
   notification is required to be submitted to OCBC.

   PT Bank Central Asia Tbk

   On November 15, 2019, the Company signed a Credit Agreement with PT Bank Central Asia Tbk (“BCA”) as
   stated in Credit Agreement No. 03496/PK/SLK/2019 where BCA approved the provision of a Local Credit
   Facility (Current Account) to the Company with a maximum credit amount of Rp10,000,000,000 to be used for
   working capital needs with an agreement term of one year starting from November 19, 2019 - November 19,
   2020 and the credit interest rate is 10.50%. This agreement has been extended and amended several times,
   most recently based on Amendment to Credit Agreement No. 00231/PPK/KML/2022 dated December 16, 2022
   where the maximum credit amount is Rp11,000,000,000 and matures on November 19, 2023 with an interest
   rate on the credit facility of 11.00% per year.

   On November 15, 2023, the Company obtained an extension of the term for using the credit facility from
   PT Bank Central Asia Tbk which matures until November 19, 2024.




                                                                                                                37
Page 134
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

13. SHORT TERM BANK LOAN (Continued)

   Guarantees for credit facilities from BCA are as follows:
   a. A plot of land measuring 68 m2 located in Ruko Canadian Kota Wisata Blok CB.D No. 22, Limusnunggal
      Village, Cileungsi District, Bogor Regency, West Java with Certificate of Ownership (SHM) No. 3733/
      Limusnunggal in the name of Verah Wahyudi S Wong.
   b. A plot of land measuring 50 m2 located in Ruko Boston Kota Wisata Blok RK 2 No. 25, Ciangsana Village,
      Gunung Putri District, Bogor Regency, West Java with Building Use Rights Certificate (SHGB)
      No. 10369/Ciangsana in the name of Verah Wahyudi S Wong.
   c. A plot of land measuring 58 m2 located on Jalan Raya Tapos No. 50 RT.02 RW.12, Tapos Village, Tapos
      District, Depok City, West Java with SHM No. 3209/Tapos in the name of Budi Aditya Erna Mulyanto.
   d. A plot of land measuring 56 m2 located on Jalan KH Mansyur, Gondrong Village, Cipondoh District,
      Tangerang City, Banten with SHM No. 1842/Gondrong in the name of Budi Aditya Erna Mulyanto.
   e. 2 plots of land located on Jalan Raden Fattah, West Sudimara Village, Ciledug District, Tangerang City,
      Banten with SHM No. 3403/West Sudimara covering an area of 32 m2 and SHM No. 3408/West Sudimara
      covering an area of 5 m2, both of which are in the name of Budi Aditya Erna Mulyanto.
   f. A plot of land measuring 175 m2 located at Ruko Jalan Raya Cinere Blok M No. 26, Cinere Village, Limo
      District, Depok City, West Java with SHM No. 4050/Cinere in the name of Budi Aditya Erna Mulyanto.
   g. A plot of land measuring 128 m2 located in the Ottawa Cluster Tourism City Housing Block UC 2 No. 3,
      Limusnunggal Village, Cileungsi District, Bogor City, West Java with SHM No. 4553/Limusnunggal in the
      name of Budi Aditya Erna Mulyanto.
   h. A plot of land measuring 2,095 m2 located on Jalan Purnawarman, Kp. Lebak Sirna RT.001 RW.07,
      Ciampea Village, Ciampea District, Bogor City, West Java with SHM No. 442/Ciampea in the name of Budi
      Aditya Erna Mulyanto.
   i. A plot of land measuring 150 m2 located at Ruko Jln. Wibawa Mukti II No. 3C RT.01 RW.07, Jatiasih
      Village, Jatiasih District, Bekasi City, West Java with SHM No. 8215/Jatiasih in the name of Budi Aditya
      Erna Mulyanto.
   j. A plot of land measuring 180 m2 located in the Coastesville Cluster Tourism City Housing Block SC 5
      No. 35, Ciangsana Village, Gunung Putri District, Bogor Regency, West Java with SHM No. 7377/
      Ciangsana in the name of Budi Aditya Erna Mulyanto.

   Based on the agreement, the Company is not permitted to carry out the following activities without prior written
   approval from BCA, namely:
   a. obtain new loans/credit from other parties and/or commit themselves as guarantors in any form and under
      any name and/or pledge assets to other parties.
   b. lend money, including but not limited to affiliated companies, except for carrying out daily business.
   c. make investments, investments or open new businesses outside the Company core business.
   d. carrying out consolidation, merger, takeover, dissolution/liquidation, as well as changing institutional status,
      articles of association, composition of directors and board of commissioners and shareholders and
      distributing dividends.

   The company has received a waiver from BCA regarding the above matter in Letter No. 00479/SLK/2023 dated
   May 8, 2023 and Letter No. 00793/SLK/2023 dated July 21, 2023.




                                                                                                                   38
Page 135
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

14. TRADE PAYABLES

   This account consists of:

                                                            December 31, 2023      December 31, 2022
   Third Parties
     PT Jejaring Mitra Persada                                   6.015.313.110                      -
     PT AFC Dinamika Indonesia                                   2.909.976.000                      -
     PT Voksel Electric                                          2.166.498.000                      -
     PT Antar Jaringan Nusantara                                   994.877.489                      -
     PT Dinamika Cipta Solusi                                      932.400.000                      -
     PT UOB KAI HIAN Sekuritas                                     582.750.000                      -
     PT Multidata Rancana Prima                                              -          8.042.712.898
     Mr. Sutisna                                                             -          1.299.289.930
     CV Bina Manunggal Sejati                                                -            715.206.238
     PT Milenial Inti Telekomunikasi                                         -            578.447.528
     Others (under Rp500 million)                                1.847.557.132          2.542.948.932
   Total                                                        15.449.371.731         13.178.605.526

   All business debts are denominated in Rupiah. The Group does not provide guarantees for its debts to
   suppliers.


15. ACCRUAL EXPENSES

   This account consists of:

                                                            December 31, 2023      December 31, 2022
   Operational Rights Fee (BHP)
    And Universal Service Obligations (USO)                      3.454.650.381          3.619.659.714
   Wages                                                           960.197.812          1.540.757.693
   Total                                                         4.414.848.193          5.160.417.407




                                                                                                    39
Page 136
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

16. CONSUMER FINANCING LIABILITIES

   This account consists of:

                                                                           December 31, 2023          December 31, 2022
   Third Parties
     PT BCA Finance                                                             4.736.354.297                   993.345.660
     PT Maybank Indonesia Finance                                               1.069.740.000                             -
     PT Mega Finance                                                              158.000.000                   347.600.000
     PT Federal International Finance                                              35.549.999                    82.950.000
     PT Toyota Astra Financial Services                                                     -                    40.530.000
   Total                                                                        5.999.644.296                  1.464.425.660
   Interest that is not yet due                                                  (437.440.113)                  (195.828.313)
   Present value of minimum payment                                             5.562.204.184                  1.268.597.347
   The due part is in one year time                                            (3.339.189.887)                  (598.250.302)
   Long Term Section                                                            2.223.014.297                   670.347.045

   PT BCA Finance

   The company signed several vehicle financing agreements with PT BCA Finance with the following details:

                                                                                           Total Financing        Interest Rate
       Contract Date              Name and Number of Vehicle                 Time period        (IDR)               (per year)
     September 21, 2021       5 units Daihatsu - Granmax Blind Van 1.3        36 months        607.608.001           7,49%
        July 28, 2022      1 unit Hyundai Palisade 2.2 LX2 CRDI 2WD AT        36 months        786.942.792           3,55%
       April 28, 2023           6 units of Wuling - Air EV Long Range         36 months      1.358.294.383           2,66%
        July 31, 2023             8 units of Wuling - Air EV 300 KM           36 months      1.774.886.400           3,75%
       August 7, 2023             5 units of Suzuki - S PRESSO MT             36 months        664.398.000           3,75%
     September 29, 2023             6 units Wuling - Air EV 300 KM            36 months      1.280.188.800           2,60%


   PT Maybank Indonesia Finance

   The company signed several agreements for vehicle financing with PT Maybank Indonesia Finance with the
   following details:

                                                                                           Total Financing        Interest Rate
       Contract Date              Name and Number of Vehicle                 Time period         (Rp)               (per year)
       March 31, 2023     1 unit of Hyundai IONIQ 5 Signature Long Range      36 months          713.160.000         2,77%
        April 5, 2023     1 unit of Hyundai IONIQ 5 Signature Long Range      36 months          713.160.000         2,77%




                                                                                                                              40
Page 137
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

16. CONSUMER FINANCING LIABILITIES (Continued)

   PT Mega Finance

   The company signed several vehicle financing agreements with PT Mega Finance with the following details:

                                                                                               Total Financing    Interest Rate
       Contract Date             Name and Number of Vehicle                 Time period              (Rp)           (per year)
      January 19, 2022         20 units of Honda - Genio CBS ISS             33 months             521.400.000       17,52%


   PT Federal International Finance

   The company signed several vehicle financing agreements with PT Federal International Finance with the
   following details:

                                                                                               Total Financing    Interest Rate
       Contract Date             Name and Number of Vehicle                 Time period              (Rp)           (per year)
     November 30, 2021        5 units of Honda Motor - C1M02N42S1            33 months             130.350.000   29,69% (anuitas)


   PT Toyota Astra Finance Service

   The company signed several vehicle financing agreements with PT Toyota Astra Finance Service with the
   following details:

                                                                                               Total Financing    Interest Rate
     Contract Date              Name and Number of Vehicle                  Time period              (Rp)           (per year)
    January 30, 2020       10 units of Daihatsu - Granmax PU GMRP            36 months           1.459.080.000       12,58%
                                       PMREJJ HAFH E4


   All consumer financing debts from PT Toyota Astra Finance Service have been paid off in January 2023.

   Consumer financing debt is secured by the assets financed by this debt. Future minimum finance lease
   payments are as follows:

                                                 December 31, 2023                                December 31, 2022
                                           Payment                                          Payment
                                         Minimum Rent       Present Value                 Minimum Rent       Present Value
                                           Financing       Rental Payments                  Financing       Rental Payments
   Up to 1 year                            2.325.506.647            3.339.189.887            742.380.263          598.250.302
   More than 1 - 5 years                   3.674.137.649            2.223.014.297            722.045.397          670.347.045
   Total                                   5.999.644.296            5.562.204.184           1.464.425.660        1.268.597.347




                                                                                                                              41
Page 138
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

17. OTHER PAYABLE

   This account consists of:

                                                                December 31, 2023        December 31, 2022
    Related Parties (Note 33)
     PT Sumber Data Indonesia                                         1.650.000.000            2.200.000.000
     Shareholders                                                       700.000.000                        -
     PT Fiber Network Indonesia                                                   -              500.000.000
   Total                                                              2.350.000.000            2.700.000.000

   All other debts are denominated in Rupiah.

   The debt to PT Sumber Data Indonesia (SDI) is an interest-free loan received by the Company from SDI with a
   loan repayment period starting from August 15, 2023 - November 15, 2023 with total installments of
   Rp550,000,000 per month. On November 16, 2023, the loan repayment period has been extended until
   December 10, 2024 with total installments of Rp137,500,000 per month starting January 10, 2024.


18. LEASE LIABILITIES

   The Group entered into several lease agreements relating to the rental of office space. The rental agreement
   has a fixed term from 3 months to 56 months, but can have an extension option. The lease agreement does
   not provide any conditions, but the leased asset cannot be used as collateral for a loan. The Group entered
   into an office space rental agreement with PT Mustika Ratu Center as follows:
   a. On May 13, 2022, the Company signed a Lease Agreement with PT Mustika Ratu Center for office space.
        This agreement has been amended several times, most recently on July 24, 2023 where the Company
        rented office space on the Ground Floor covering an area of 388.18 m2 with a rental period of 4 years 8
        months from September 15, 2023 to June 12, 2028.
   b. On November 7, 2022, the Company signed a Lease Agreement with PT Mustika Ratu Center for office
        space. This agreement has been amended several times, most recently on August 31, 2023 where the
        Company rented office space on the Annex Floor covering an area of 147.5 m2 with a rental period of
        3 months from October 1, 2023 to January 1, 2024.
   c. On February 21, 2011 and June 8, 2015, the Company signed a Lease Agreement with PT Mustika Ratu
        Center for office space. This agreement has been amended several times, most recently on January 27,
        2023 and June 12, 2023 where the Company rented office space on the Annex Floor with a total area of
        171.36 m2 with a rental period of 3 months from June 15, 2023 to September 14, 2023. Furthermore, on
        September 22 2023, the Company signed an addendum to the rental agreement whereby the area of the
        office space rented was reduced to 59.23 m2 effective from September 15, 2023 until December 31, 2023.
   d. On November 7, 2022, PT PC 24 Cyber Indonesia signed a Lease Agreement with PT Mustika Ratu
        Center for office space. This agreement has been amended several times, most recently on August 31,
        2023 where PT PC 24 Cyber Indonesia rented office space on the Annex Floor with an area of 73.28 m2
        with a rental period of 3 months from October 1, 2023 to January 1, 2024.




                                                                                                            42
Page 139
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

18. LEASE LIABILITIES (Continued)

   Future minimum rental payments, as well as the present value of minimum rental payments are as follows:

                                                                December 31, 2023        December 31, 2022
    Minimum rental payment                                            6.639.666.510                           -
    The interest portion has not yet matured                         (1.798.557.417)                          -
    Present value of minimum payment                                 4.841.109.093                            -
    The due part is in one year's time                                (692.476.700)                           -
    Long Term Section                                                 4.148.632.393                           -

   The amount of implicit incremental interest used is 6%


19. EMPLOYEE BENEFITS LIABILITIES

   The Group’s employee benefits liabilities for the ten month period ending December 31, 2023 in its report
   dated November 27, 2023 and for the years ending December 31, 2023 and 2022 were calculated by the
   independent actuary, Arya Bagiastra Actuarial Consulting Firm, in its report of July 7, 2023, using the
   “Projected Unit Credit“ method by considering several assumptions as follows:

                                                                December 31, 2023        December 31, 2022
    Discount rate                                                      7,22%                    7,22%
    Salary increase rate                                               6,00%                    6,00%
    Mortality table                                                    TMI IV                   TMI IV
    Retirement age                                                  55 years old             55 years old

   Movements in employee benefits liabilities are as follows:

                                                                December 31, 2023       December 31, 2022
   Beginning of year balance                                         2.019.863.286            1.743.559.004
   Expenses recognized on the report:
     Profit and loss                                                  526.066.294               389.306.042
     Other comprehensive income                                        66.900.102              (113.001.760)
   End of Year Balance                                               2.612.829.682            2.019.863.286




                                                                                                             43
Page 140
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

19. EMPLOYEE BENEFITS LIABILITIES (Continued)

   The amounts recognized in the consolidated statement of profit or loss and other comprehensive income in
   connection with employee benefits liabilities are as follows:

                                                                          2023                      2022
   Expenses recognized in profit or loss:
     Current service costs                                                380.316.331               266.015.432
     Interest costs                                                       145.749.963               123.290.610
   Total                                                                  526.066.294               389.306.042
   Remeasurement recognized in
    other comprehensive income:
    Actuarial losses (profits) arising from:
      Changes in financial assumptions                                    106.480.715                (62.398.269)
      Adjustment to experience                                            (39.580.613)               (50.603.491)
   Total                                                                   66.900.102              (113.001.760)

   The quantitative sensitivity analysis of defined benefit obligations to changes in the main weighted assumptions
   on December 31, 2023 and 2022 is as follows:

                                                                                  Impact on
                                                                          Defined Benefit Obligation
                                                 Change               Assumption            Derivation of
                                               Assumption             Ascension             Assumptions
   December 31, 2023
    Discount rate                                 1%                     (457.357.912)               92.380.724
    Salary increase rate                          1%                      106.526.351              (472.470.605)

   December 31, 2022
    Discount rate                                 1%                     (231.397.119)              267.887.742
    Salary increase rate                          1%                      280.331.544              (244.642.719)


20. TAXATION

   a. Tax debt

                                                                   December 31, 2023         December 31, 2022
       income tax
         Article 4 (2)                                                     44.972.907               228.764.119
         Article 21                                                       641.621.953               328.988.363


                                                                                                                44
Page 141
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

20. TAXATION (Continued)

                                                                   December 31, 2023         December 31, 2022
         Article 23                                                         75.727.470               118.642.826
         Article 25                                                        480.235.004               212.018.784
         Article 29                                                      5.410.366.947             4.984.196.068
       value-added tax                                                     939.415.389             1.159.149.930
       Total                                                             7.592.339.670             7.031.760.090

   b. Benefits (Expenses) of Income Tax

                                                                           2023                      2022
       Current
        Company                                                         (8.816.451.727)           (7.772.503.860)
        Child entity                                                    (1.594.396.859)           (1.966.926.280)
         Sub-Total                                                     (10.410.848.586)           (9.739.430.140)

       Deferred
        Company                                                            269.705.692               181.484.407
        Child entity                                                       (69.092.031)               40.876.380
         Sub-Total                                                         200.613.661               222.360.787
       Income Tax Expense - Net                                        (10.210.234.925)           (9.517.069.353)

       The reconciliation between profit before income tax as stated in the consolidated statement of profit or loss
       and other comprehensive income and the Company estimated taxable profit for the ten month period
       ending December 31, 2023 and 2022 is as follows:

                                                                           2023                      2022
       Profit before income tax expense
         according to the income statement and
         consolidated other comprehensive income                       36.368.695.472             35.506.300.927
       Profit before tax of subsidiaries and eliminations              (6.590.796.284)            (5.668.610.310)
       Profit before income tax - Company                              29.777.899.188             29.837.690.617
       Still different                                                 10.296.882.112              4.666.944.168
       Temporary difference                                                         -                824.929.121
       Taxable Profits - Company                                       40.074.781.300             35.329.563.906
       Taxable Profits - Company (rounding)                            40.074.780.576             35.329.563.000



                                                                                                                 45
Page 142
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

20. TAXATION (Continued)

                                                                               2023                       2022
       Income tax expense - current                                       8.816.451.727                 7.772.503.860
       Less prepaid income tax:
         Article 23                                                      (1.035.455.146)               (1.998.617.114)
         Article 22                                                         (75.474.000)                            -
         Article 25                                                      (4.377.659.277)               (1.712.881.941)
       Income Tax Debt Article 29 - Company                               3.327.863.304                 4.061.004.805

       The taxable profit resulting from the reconciliation above is the basis for filling out the Annual Corporate
       Income Tax Return to the Tax Office.

   c. Deferred Tax

                                                                                  Credited to Other
                                             Balance as of     Charged to         Comprehensive          Balance as of
                                            January 1, 2023   Profit or Loss          Income           December 31, 2023
       Company
        Employee benefits                       300.040.091        83.237.525           13.195.227          396.472.843
        Provision for impairment of value
          receivables                           137.163.309      186.468.167                      -         323.631.476
       Child entity
        Employee benefits                       144.329.832        32.497.059            1.522.796          178.349.687
        Provision for impairment of value
           receivables                          428.430.776      (101.589.091)                    -         326.841.685
       Total Deferred Tax Assets              1.009.964.008      200.613.661            14.718.022         1.225.295.691



                                                                                  Credited to Other
                                             Balance as of     Charged to         Comprehensive          Balance as of
                                            January 1, 2022   Profit or Loss          Income           December 31, 2022
       Company
        Employee benefits                       257.775.951        57.441.684          (15.177.544)         300.040.091
        Provision for impairment of value
          receivables                            13.120.586      124.042.723                      -         137.163.309
       Child entity
        Employee benefits                       125.807.030        28.205.645            (9.682.843)        144.329.832
        Provision for impairment of value
           receivables                          415.760.041        12.670.735                     -         428.430.776
       Total Deferred Tax Assets                812.463.608      222.360.787           (24.860.387)        1.009.964.008




                                                                                                                      46
Page 143
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

21. CAPITAL STOCK

   The composition of the Company shareholders is as follows:

                                                                 December 31, 2023
                                        Number of Issued            Percentage
                                        and Paid Shares             Ownership                     Total
   Verah Wahyudi Singgih Wong                1.056.000.000               96%                   52.800.000.000
   Jimmi Anka                                   44.000.000                4%                    2.200.000.000
   Total                                     1.100.000.000              100%                   55.000.000.000


                                                                 December 31, 2022
                                        Number of Issued            Percentage
                                        and Paid Shares             Ownership                     Total
   Budi Aditya Erna Mulyanto                            240              96%                       24.000.000
   Jimmi Anka                                            10              4%                         1.000.000
   Total                                                250             100%                       25.000.000

   Based on the Deed of Establishment of Limited Liability Company Company No. 5 dated March 15, 2004 by
   Fajra Rizqi Nasution, SH., Notary in Bekasi Regency, which has received approval from the Minister of Justice
   and Human Rights of the Republic of Indonesia in Decree No. C-12023.HT.01.01.TH.2004 dated
   May 13, 2004, the shareholders have agreed to establish a Company with authorized capital of Rp50,000,000
   (equivalent to 500 shares) and issued and paid-up capital of Rp25,000,000 (equivalent to 250 shares shares)
   with the composition of shareholders as follows:
   (a) Agus Handoko amounting to Rp12,500,000.
   (b) Eddy Mulyanto amounting to Rp12,500,000.

   Based on Deed no. 4 dated November 13, 2009 by Fajra Rizqi Nasution, SH., Notary in Bekasi Regency,
   which has received approval from the Minister of Law and Human Rights of the Republic of Indonesia in
   Decree No. AHU-32771.AH.01. 02.In 2010, on June 29, 2010, the shareholders approved the change in
   shareholders and shareholders from Eddy Mulyanto to Budi Aditya Erna Mulyanto so that the composition of
   the Company’s shareholders became as follows:
   (a) Agus Handoko amounting to Rp12,500,000.
   (b) Budi Aditya Erna Mulyanto amounting to Rp12,500,000.

   Based on Deed no. 43 dated November 16, 2015 by Achmad Zainudin, SH., M.Kn., Notary in Bogor Regency,
   which was notified and accepted by the Minister of Law and Human Rights of the Republic of Indonesia in
   Letter No. AHU-AH.01.03-0981532 dated November 19, 2015, the shareholders approved the transfer of all
   shares owned by Agus Handoko to Budi Aditya Erna Mulyanto in the amount of Rp11,500,000 (equivalent to
   115 shares) and Jimmi Anka to Rp1,000,000 (equivalent to 10 shares) respectively. so that the composition of
   the Company’s shareholders is as follows:
   (a) Budi Aditya Erna Mulyanto amounting to Rp24,000,000.
   (b) Jimmi Anka amounting to Rp1,000,000.


                                                                                                             47
Page 144
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

21. CAPITAL STOCK (Continued)

   Based on Deed no. 1 dated May 3, 2023 by Elizabeth Karina Leonita, SH., M.Kn., Notary in South Jakarta,
   which has received approval from the Minister of Law and Human Rights of the Republic of Indonesia in
   Decree No. AHU-0030001.AH,01,02.TAHUN 2023 dated May 30, 2023, the shareholders approved the grant
   of 240 shares belonging to Budi Aditya Erna Mulyanto in the Company to Verah Wahyudi Singgih Wong, so
   that the composition of the Company’s share ownership is as follows:
   (a) Verah Wahyudi Singgih Wong amounting to Rp24,000,000.
   (b) Jimmi Anka amounting to Rp1,000,000.

   Based on the Deed of Decree of the Annual General Meeting of Shareholders No. 131 dated
   August 30, 2023 by Elizabeth Karina Leonita, SH., M.Kn., Notary in South Jakarta, the shareholders stated
   their decision, among other things, to determine the use of the Company’s comprehensive profit up to
   December 31, 2022 as follows:
   (a) Rp1,000,000,000 as Company reserve funds.
   (b) amounting to Rp54,975,000,000 as share dividends and will be distributed proportionally to shareholders
   with distribution provisions, namely Verah Wahyudi Singgih Wong amounting to RP52,776,000,000 and Jimmi
   Anka amounting to Rp2,199,000,000.

   Based on Deed no. 132 dated August 30, 2023 by Elizabeth Karina Leonita, SH., M.Kn., Notary in South
   Jakarta, which has received approval from the Minister of Law and Human Rights of the Republic of Indonesia
   in Decree No. AHU-0051661.AH.01. 02.TAHUN 2023 dated August 31, 2023, the shareholders approved an
   increase in authorized capital from RP50,000,000 to Rp220,000,000,000 and an increase in the Company’s
   issued and paid-up capital from Rp25,000,000 to Rp55,000,000,000. an increase in the Company issued and
   paid-up capital amounting to Rp54,975,000,000 through the distribution of share dividends and shares and
   paid-up in full by the shareholders in accordance with their portion of ownership so that the composition of the
   Company share ownership is as follows:
   (a) Verah Wahyudi Singgih Wong amounting to Rp52,800,000,000 or 528,000 shares.
   (b) Jimmi Anka amounting to Rp2,200,000,000 or 22,000 shares.

    Based on Deed no. 45 dated November 15, 2023 by Notary Elizabeth Karina Leonita, SH., M.Kn., Notary in
    South Jakarta, which has received approval from the Minister of Law and Human Rights of the Republic of
    Indonesia in Decree No. AHU-0071258.AH.01.02.TAHUN 2023 dated November 17, 2023 and has been
    received by the Minister of Law and Human Rights based on letter No. AHU-AH.01.09-0186388 and letter
    No. AHU-AH.01.03-0143300 on November 17, 2023 respectively, the shareholders took decisions, including
    the following:
    Approved the change in the Company status from a closed company to a public company.
    Approve the Company plan to conduct an Initial Public Offering (IPO) by issuing shares in the Company’s
       savings/portfolio and offering/selling new shares to be issued from the portfolio through an IPO to the
       public, in a maximum amount of 275,000,000 or a maximum of 20% of the issued and paid-up capital after
       the IPO with a nominal value of Rp50 per share.
    Approve to list all of the Company shares, after holding the IPO, for shares offered and sold to the public
       through the Capital Market, as well as shares owned by shareholders (other than public shareholders) of
       the Company, on the Indonesian Stock Exchange, and agree to register Company shares are in Collective
       Custody which is carried out in accordance with applicable laws and regulations in the Indonesian Capital
       Market sector.



                                                                                                                48
Page 145
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

21. CAPITAL STOCK (Continued)

       Approved the determination of the controlling shareholder of the Company in order to comply with the
        provisions of Article 85 of the Financial Services Authority Regulation Number 3/POJK.04/2021 concerning
        the Implementation of Capital Market Activities, namely Verah Wahyudi Singgih Wong as the party
        controlling the Company based on the applicable laws and regulations in the field Capital market.
         Approved the change in nominal value per share from previously Rp100,000 to Rp50 per share.


22. ADDITIONAL PAID-IN CAPITAL

   In 2016, the Company participated in the tax amnesty program. The company received a Tax Amnesty
   Certificate (SKPP) on October 12, 2016. The reported tax amnesty assets amounted to Rp7,271,363,600. and
   no tax liabilities were reported. The difference between tax amnesty assets and tax amnesty liabilities is
   recorded as part of the “Additional Paid-in Capital” account amounting to Rp7,271,363,600. The amount of
   ransom paid by the Company under the tax amnesty program was Rp145,427,272.


23. RETAINED EARNINGS

   This account consists of:

                                                                 December 31, 2023        December 31, 2022
   Appropriated
    Balance at beginning of the year                                               -                         -
    Reserve                                                            1.000.000.000                         -
       Balance at End of the Year                                      1.000.000.000                         -

   Unappropriated
    Balance at beginning of the year                                  57.838.171.482           31.886.365.512
    Dividend distribution                                            (54.975.000.000)                       -
    Reserve                                                           (1.000.000.000)                       -
    Profit for the year                                               26.133.017.713           25.951.805.970
       Balance at End of the Year                                    27.996.189.195            57.838.171.482
   Total                                                             28.996.189.195            57.838.171.482




                                                                                                             49
Page 146
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

24. OTHER COMPREHENSIVE INCOME

   This account consists of:

                                                           December 31, 2023      December 31, 2022
   Balance at beginning of the year                                (9.993.078)           (97.791.150)
   Other comprehensive profit (loss)
     current year                                                 (52.128.090)            87.798.072
   Balance at End of the Year                                     (62.121.168)            (9.993.078)

   Addition to other comprehensive income consists of actuarial gains (losses) on the remeasurement of
   employee benefits liabilities and related income taxes attributable to owners of the parent entity.


25. NONCONTROLLING INTERESTS

   This account consists of:

                                                           December 31, 2023      December 31, 2022
   Balance at beginning of the year                               165.160.955            127.392.050
   Acquisition of subsidiaries                                    185.000.000                      -
   Share of net profit from subsidiaries                           25.442.834             37.425.604
   Other comprehensive income section
     from subsidiary entities                                         (53.990)               343.301
   Balance at End of the Year                                     375.549.799            165.160.955



26. REVENUE

   This account consists of:

                                                                  2023                   2022
   Third Parties
     Telecommunications revenue                               182.941.858.099        183.924.214.946
     Non-telecommunications income                             17.305.887.820          4.735.243.092
     Sub-Total                                                200.247.745.919        188.659.458.038




                                                                                                   50
Page 147
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

26. REVENUE (Continued)

                                                                        2023                     2022
   Related Parties
    Telecommunications revenue                                      16.899.990.269             20.396.482.934
    Non-telecommunications income                                      245.000.000                652.600.000
     Sub-Total                                                      17.144.990.269             21.049.082.934
   Total                                                           217.392.736.188           209.708.540.972

   There is no revenue from any one customer that exceeds 10% of total consolidated revenue.


27. COST OF GODS SOLD

   This account consists of:

                                                                        2023                     2022
   Repair and maintenance                                           36.878.935.675             30.282.956.454
   Material load                                                    34.497.291.853             62.636.743.381
   Depreciation                                                     10.994.610.436             15.003.758.202
   BHP Universal Service Obligation (USO) and
    BHP Radio Station License (ISR)                                   3.463.399.092             3.573.651.959
   Rent equipment                                                     1.039.791.516             7.734.516.496
   Operational expenses                                               9.981.861.314             2.972.654.784
   Total                                                            96.855.889.886           122.204.281.276

   There are no purchases from one supplier that exceed 10% of total consolidated revenue.


28. SALES EXPENSES

   This account consists of:

                                                                        2023                     2022
   Commission                                                       16.076.658.326             14.950.615.727
   Banquet                                                             900.161.536                235.406.091
   Advertisement                                                        98.328.040                212.690.773
   Marketing                                                             6.549.284                  2.945.671
   Total                                                            17.081.697.186             15.401.658.262




                                                                                                            51
Page 148
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

29. GENERAL AND ADMINISTRATIVE EXPENSES

   This account consists of:

                                                      2023             2022
   Salary, wages, bonuses and benefits              28.143.967.290   21.668.237.911
   Utility                                           4.312.724.965    3.804.131.885
   Depreciation of fixed and right-of-use assets     4.544.678.541    2.473.187.019
   Rent                                              2.855.536.196    1.728.524.122
   Professional services                             2.818.242.048      426.500.000
   Fuel, tolls and parking                           1.234.404.258      853.603.629
   Repair and maintenance                            1.056.026.151      976.544.630
   Office operations                                 1.040.036.695    1.382.172.810
   Legality and licensing                              641.740.555      388.732.342
   Expedition                                          518.634.838      521.674.456
   Employee benefits                                   526.066.294      389.306.042
   Retribution                                         169.447.031       83.211.735
   Others (under Rp100 million)                        633.132.335      738.283.941
   Total                                            48.494.637.197   35.434.110.522



30. FINANCIAL CHARGES

   This account consists of:

                                                      2023             2022
   Interest on consumer financing debt                359.490.989       285.883.690
   Interest on bank debt                              424.855.200     1.030.938.092
   Provisions and administration                                -        75.625.000
   Total                                              784.346.189     1.392.446.782




                                                                                  52
Page 149
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

31. OTHER INCOME (EXPENSES)

   This account consists of:

                                                                       2023                     2022
   Other Income
     Profit over write-off
        other debts                                                    500.000.000                         -
      Interest income on other receivables
        from related parties                                           285.361.521              437.737.715
     Current account service                                            84.953.637              104.282.102
     Losses from associated entities                                   (43.108.083)
     Others (under Rp100 million)                                   (2.364.851.032)             843.548.160
     Sub-Total                                                      (1.537.643.957)           1.385.567.977

   Other Expenses
     Losses on inventory write-offs                                (11.773.626.025)                       -
     Tax penalties and fines                                        (3.471.826.919)              (8.405.714)
     Bank Administration                                              (498.176.286)            (341.251.521)
     Allowance for impairment of receivables                          (385.813.982)            (621.424.807)
     Losses on investment disposal                                     (47.500.000)                       -
     Losses on exchange rate differences                               (15.397.753)            (163.776.580)
     Others (under Rp100 million)                                      (77.485.336)             (20.452.558)
     Sub-Total                                                     (16.269.826.301)          (1.155.311.180)
   Net                                                             (17.807.470.258)             230.256.797



32. EARNINGS PER SHARE

   This account consists of:

                                                                       2023                     2022
   Attributable net profit
     to the owners of the parent entity                             26.133.017.713           25.951.805.970
   Weighted average sum
     outstanding shares                                                374.028.767                  500.000
   Net Earnings per Share                                                     69,87               51.903,61

   On November 15, 2023, the nominal value per share changed from Rp100,000 to Rp50 per share in
   accordance with the Notarial Deed (Note 39). Therefore, the calculation of basic earnings per share for all
   periods presented is adjusted retrospectively.

                                                                                                           53
Page 150
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

33. BALANCE AND TRANSACTIONS WITH RELATED PARTIES

   In normal business activities, the Group carries out transactions with related parties. These transactions are as
   follows:

   a. Nature of Relationships and Transactions with Related Parties

       Entity                                          Relationship                         Nature of Transaction

       PT Fiber Networks Indonesia              Entities with common control            Revenue and Receivables
       PT Network Fiber Indonesia               Entities with common control            Revenue and Receivables
       PT Fiber Media Indonesia                Entities under common control               Other receivables
       PT Sumber Data Indonesia                Entities under common control                 Other payable

       Entities under common control are entities that have shareholders and/or members of the board of
       directors and board of commissioners or have family relationships with the shareholders.

       Transactions with related parties are carried out with conditions equivalent to those applicable in normal
       transactions.

   b. Revenue and Accounts Receivable

       Details of income from related parties are as follows:

                                                                             2023                      2022
       PT Fiber Networks Indonesia                                         13.924.464.155           18.242.768.999
       PT Sumber Data Indonesia                                             3.220.526.114            2.430.910.923
       PT Jaringan Fiber Indonesia                                                      -              375.403.012
       Total                                                               17.144.990.269           21.049.082.934
       Percentage of total consolidated income                                      7,89%                     10,04%

       Details of trade receivables from related parties are as follows:

                                                                    December 31, 2023           December 31, 2022
       PT Fiber Networks Indonesia                                          1.336.362.687            1.473.274.466
       PT Sumber Data Indonesia                                               358.794.302              241.245.300
       PT Jaringan Fiber Indonesia                                                      -              294.364.678
       Total                                                                1.695.156.989            2.008.884.444
       Percentage of total consolidated assets                                      1,15%                     2,07%




                                                                                                                    54
Page 151
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

33. BALANCE AND TRANSACTIONS WITH RELATED PARTIES (Continued)

   c. Other receivables

                                                             December 31, 2023        December 31, 2022
       PT Fiber Media Indonesia                                    3.707.674.348           4.707.674.348
       PT Jaringan Fiber Indonesia                                             -              40.855.556
       Total                                                       3.707.674.348           4.748.529.904
       Percentage of total consolidated assets                             2,52%                    4,90%

      Receivables from PT Fiber Media Indonesia are loans provided without collateral and bear interest of
      10.5% with a loan repayment period of up to October 2024.

      Receivables from PT Fiber Media Indonesia are loans provided without collateral and bear interest of
      10.5% with a loan repayment period of up to October 2024.

   d. Other Debts

                                                             December 31, 2023        December 31, 2022
       PT Sumber Data Indonesia                                    1.650.000.000           2.200.000.000
       Pemegang saham                                                700.000.000                       -
       PT Fiber Networks Indonesia                                             -             500.000.000
       Total                                                       2.350.000.000           2.700.000.000
       Percentage of total consolidated liabilities                        4,24%                    8,56%

      The debt to PT Fiber Network Indonesia (FNI) is a loan received by PC 24 from FNI. On August 1, 2023,
      the debt to FNI was written off

   The total remuneration given to key management personnel is in the form of short-term rewards with the
   following details:

                                                              December 31, 2023       December 31, 2022
   Director                                                          555.600.795             146.924.003
   Commissioner                                                       54.065.908                       -
   Total                                                             609.666.703             146.924.003




                                                                                                        55
Page 152
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

34. FINANCIAL INSTRUMENTS

   The following table presents the carrying amounts and estimated fair values of financial instruments recorded
   in the consolidated statements of financial position as of December 31, 2023 and 2022:

                                             December 31, 2023                          December 31, 2022
                                    Carrying Amount        Fair Value          Carrying Amount        Fair Value
   Financial Assets
   Measured at amortized cost
     Cash                               9.440.496.783        9.440.496.783       13.178.488.169        13.178.488.169
     Accounts receivable                4.932.144.981        4.932.144.981        7.920.566.774         7.920.566.774
     Other receivables                  5.077.684.183        5.077.684.183        5.216.005.089         5.216.005.089
     Other non-current assets -
       Bail                               241.043.430          241.043.430          123.662.390           123.662.390
   Total Financial Assets              19.691.369.377       19.691.369.377       26.438.722.422        26.438.722.422

   Financial Liabilities
   Measured at amortized cost
     Short-term bank debt              12.602.714.636       12.602.714.636          189.770.927           189.770.927
     Accounts payable                  15.449.371.731       15.449.371.731       13.178.605.526        13.178.605.526
     Accrued expenses                   4.414.848.193        4.414.848.193        5.160.417.407         5.160.417.407
     Other debts                        2.350.000.000        2.350.000.000        2.700.000.000         2.700.000.000
     Consumer financing debt            5.562.204.184        5.562.204.184        1.268.597.347         1.268.597.347
     Rental liabilities                 4.841.109.093        4.841.109.093                    -                     -
   Total Financial Liabilities         45.220.247.836       45.220.247.836       22.497.391.207        22.497.391.207


   The Group has monetary assets denominated in foreign currencies as follows:

                                             December 31, 2023                          December 31, 2022
                                    Foreign currency  Rupiah equivalent        Foreign currency  Rupiah equivalent
   Financial Assets
     Bank
       United States Dollar                     2.622           96.592.925                  924            14.535.279



35. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

   Financial Risks

   The Group is affected by various financial risks, including credit risk, liquidity risk and market risk. The Group’s
   overall risk management objective is to effectively control these risks and minimize the adverse impact they
   may have on their financial performance.




                                                                                                                    56
Page 153
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

35. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Continued)

   Financial risk management is under direct supervision by the Board of Directors who are tasked with identifying
   and evaluating financial risks in close collaboration with the Group’s operating units. The Board of Directors
   determines overall financial risk management principles, as well as policies in certain areas, such as credit risk
   and liquidity risk, as well as the use of derivative and non-derivative financial instruments, and investment in
   excess liquidity.

   a. Credit Risk

       Credit risk is the risk that one party to a financial instrument will fail to fulfill its obligations and cause the
       other party to experience financial losses. The credit risk faced by the Group originates from operating
       activities (mainly from trade receivables from third parties) and from funding activities, including bank
       accounts.

       The Group’s credit risk exposure is primarily in managing trade receivables. The Group monitors the
       collectibility of receivables so that collections can be received in a timely manner and also reviews each
       customer’s receivables periodically to assess the potential for collection failures and establish reserves
       based on the results of this review.

       The Group’s exposure to credit risk arises from negligence of other parties, with a maximum exposure
       equal to the carrying amount of the Group’s financial assets, as follows:

                                                                      December 31, 2023           December 31, 2022
       Cash                                                                 9.440.496.783              13.178.488.169
       Accounts receivable                                                  4.932.144.981               7.920.566.774
       Other receivables                                                    5.077.684.183               5.216.005.089
       Other non-current assets
         Deposit                                                              241.043.430                 123.662.390
       Total                                                               19.691.369.377              26.438.722.422

   b. Liquidity Risk

       Liquidity risk is defined as the risk when the Group’s cash flow position indicates that short-term receipts
       are not sufficient to cover short-term expenditure. The Group’s liquidity needs have historically arisen from
       the need to finance investments and capital expenditures related to business expansion programs. The
       Group requires substantial working capital to undertake new projects and to fund operations.

       In managing liquidity risk, the Group monitors and maintains cash levels that are considered adequate to
       finance the Group’s operations and to overcome the impact of cash flow fluctuations. The Group also
       regularly evaluates cash flow projections and actual cash flows, including loan maturity schedules, and
       continues to review financial market conditions to maintain funding flexibility by maintaining the availability
       of committed credit facilities.




                                                                                                                       57
Page 154
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

35. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Continued)

       The table below shows an analysis of the maturity of the Group’s financial liabilities over a period of time
       indicating the contractual maturity for all financial liabilities. The amounts disclosed in the table are
       contractual cash flows that do not include future loan interest expenses, as follows:

                                                                  December 31, 2023
                                                                                Up to you        More than 1 year
                                     Carrying Amount          Total               1 year          up to 5 years
       Short-term bank debt            12.602.714.636      12.602.714.636      12.602.714.636                    -
       Accounts payable                15.449.371.731      15.449.371.731      15.449.371.731                    -
       Accrued expenses                 4.414.848.193       4.414.848.193       4.414.848.193                    -
       Other debts                      2.350.000.000       2.350.000.000                   -        2.350.000.000
       Consumer financing debt          5.562.204.184       5.562.204.184       3.339.189.887        2.223.014.297
       Rental liabilities               4.841.109.093       4.841.109.093         692.476.700        4.148.632.393
       Total                           45.220.247.836      45.220.247.836      36.498.601.147        8.721.646.690



                                                                  December 31, 2022
                                                                                Up to you        More than 1 year
                                     Carrying Amount          Total               1 year          up to 5 years
       Short-term bank debt               189.770.927         189.770.927         189.770.927                    -
       Accounts payable                13.178.605.526      13.178.605.526      13.178.605.526                    -
       Accrued expenses                 5.160.417.407       5.160.417.407       5.160.417.407                    -
       Other debts                      2.700.000.000       2.700.000.000                   -        2.700.000.000
       Consumer financing debt          1.268.597.347       1.268.597.347         598.250.302          670.347.045
       Total                           22.497.391.207      22.497.391.207      19.127.044.162        3.370.347.045


   Capital Management

   The main objective of the Company’s capital management is to ensure that it maintains a strong credit rating
   and healthy capital ratios in order to support the smooth running of its business and maximize shareholder
   value. The Company manages its capital structure and makes adjustments in connection with changes in
   economic conditions and the characteristics of its business risks. In order to maintain and adjust its capital
   structure, the Company will adjust the amount of dividend payments to shareholders or the rate of return on
   capital or issue share certificates. There are no changes in objectives, policies and processes and are the
   same as in previous years.

   The company monitors its capital structure using the debt to capital ratio, where total debt is divided by total
   capital.




                                                                                                                58
Page 155
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

35. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Continued)

   The calculation of the debt to total equity ratio is as follows:

                                                                      December 31, 2023     December 31, 2022
   Interest-bearing loans                                                25.356.027.913          4.158.368.274
   Total equity                                                          91.580.981.427         65.289.702.959
   Debt to Equity Ratio                                                            0,28                     0,06



36. ADDITIONAL CASH FLOW INFORMATION

   Activities that do not affect cash flow are as follows:

                                                                      December 31, 2023     December 31, 2022
   Addition of fixed assets through
     consumer financing debt                                              5.546.087.191           1.185.289.009
   Addition of right-of-use assets through lease liabilities              5.188.365.567                       -
    Decrease in other payables - related parties
     through deletion                                                       500.000.000                        -
   Increase capital through stock dividends                              54.975.000.000                        -


37. OPERATIONS SEGMENTS

   The segment information below is reported based on information used by management to evaluate the
   performance of each business segment and in allocating resources. There are no geographical segments
   because all of the Group’s business activities operate in Indonesia.

   The Group only has business in the internet service provider sector, so the consolidated statement of financial
   position and consolidated statement of profit or loss and other comprehensive income reflect the operating
   segment, while the profit from the business segment is as follows:

                                                                      December 31, 2023     December 31, 2022
   Income                                                               217.392.736.188        209.708.540.972
   Cost of revenue                                                      (96.855.889.886)      (122.204.281.276)
   Segment results                                                      120.536.846.302         87.504.259.696
   Selling expenses                                                     (17.081.697.186)       (15.401.658.262)
   General and administrative expenses                                  (48.494.637.197)       (35.434.110.522)




                                                                                                               59
Page 156
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

37. OPERATIONS SEGMENTS (Continued)

                                                                 December 31, 2023         December 31, 2022
   Financial burden                                                     (784.346.189)           (1.392.446.782)
   Other income                                                       (1.537.643.957)            1.385.567.977
   Other expenses                                                    (16.269.826.301)           (1.155.311.180)
   Benefits (burden) of income tax                                   (10.210.234.925)           (9.517.069.353)
   Segment Profit                                                     26.158.460.547           25.989.231.574

   Asset and Liability Segments
   Asset segment                                                    147.006.398.615            96.838.717.542
   Liability segment                                                 55.425.417.188            31.549.014.583


38. SIGNIFICANT AGREEMENTS AND OTHER IMPORTANT INFORMATION

   a. On October 30, 2023, the Company and PT Jejaring Mitra Persada (“Jejaring “) signed an Agreement for
      the Supply of Fiber Optic Core Cables on an Indefeasible Right of Use (IRU) basis. Based on the
      agreement, the Company purchases FO cables in the UJB Telecommunication Network from Network and
      the Company will also collaborate with PT Triasmitra Multiniaga Internasional regarding maintenance and
      repair of FO cables and Collocation rental and operations (if any) which will be stated in a separate
      agreement. The term of the agreement is 15 years from the date of signing of the Minutes of Handover.

   b. On January 2, 2023, the Company and the DKI Jakarta Provincial Government’s Department of
      Communication, Informatics and Statistics (“Diskominfotik”) signed an Order Letter for the JakWifi Work
      Package. The company provides installation and supply services for 20 Mbps international fiber optic and
      wireless at 293 locations determined by Diskominfotik with a project completion time of 90 days. The term
      of this agreement is valid from January 2, 2023 to December 31, 2023 and can be extended with the
      agreement of both parties.

   c. On January 2, 2023, the Company and the DKI Jakarta Provincial Government’s Department of
      Communication, Informatics and Statistics (“Diskominfotik”) signed an Order Letter for the
      Primary/Secondary Wide Area Network (WAN) Communication Network Link Rental Work Package. The
      company provides installation and supply services for 20 Mbps and 10 Mbps international fiber optic and
      2 Mbps international wireless at locations determined by Diskominfotik with a project completion time of 90
      days. The term of this agreement is valid from January 2, 2023 to December 31, 2023 and can be
      extended with the agreement of both parties.

   d. On January 2, 2023, the Company and the Thousand Islands Communications, Informatics and Statistics
      Sub-Department (“Kominfotik Sub-Department”) signed a Letter of Agreement for the 2023 Internet
      Bandwidth Rental Work Package for domain name management activities determined by the central
      government and sub-domains within the regional government scope districts/cities for the 2023 budget
      year with a project completion time of 12 months. The term of this agreement is valid from January 1, 2023
      to December 31, 2023.



                                                                                                              60
Page 157
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

38. SIGNIFICANT AGREEMENTS AND OTHER IMPORTANT INFORMATION (Continued)

   e. Local loop services to PT Comtronics System customers. The term of the agreement is 12 months and is
      extended automatically according to the agreement of both parties.

   f.   Local loop and dark fiber/core optic services to PT Pasifik Satelit Nusantara. The term of the agreement is
        12 months and is extended automatically according to the agreement of both parties.


39. EVENTS AFTER THE REPORTING PERIOD

   a. On February 26, 2024, the Company Board of Directors appointed Maureen Graciela as Corporate
      Secretary based on Decree No. 023/CS/RA/IPO/DIR/II/2024.

   b. On April 26, 2024, the Company received an effective statement from the Financial Services Authority
      (OJK) in letter No. S-58/D.04/2024 to conduct an Initial Public Offering of 275,000,000 shares with a
      nominal value of Rp50 per share with an offering price of Rp188 per share. On May 7, 2024, these shares
      were listed on the Indonesia Stock Exchange.


40. RESTATEMENT OF FINANCIAL STATEMENTS

   The Company restated its financial statements for December 31, 2022 and 2021 and for the year ended on
   those dates in connection with the change in the basis for preparing financial statements from Financial
   Accounting Standards for Entities Without Public Accountability (SAK ETAP) to Financial Accounting
   Standards (SAK). In the Company’s previous financial statements, investments in subsidiaries were presented
   using the equity method, but based on SAK, the Company’s financial statements were consolidated with the
   financial statements of subsidiaries so that investments in subsidiaries were eliminated with share capital and
   retained earnings of subsidiaries. Several accounts related to employee benefits have also been adjusted.

   The restatement of accounts is as follows:

                                                                       December 31, 2022
                                                   Previously
                                                    Reported              Adjustment                Restated
   STATEMENT OF FINANCIAL POSITION
   CONSOLIDATED
   Current assets
    Cash                                            9.646.130.988           3.532.357.181         13.178.488.169
    Accounts receivable
       Third party                                  5.974.794.822             (63.112.492)          5.911.682.330
       Related parties                                          -           2.008.884.444           2.008.884.444
    Other receivables
       Third party                                    462.975.185            (458.475.185)              4.500.000
       Related parties                              5.772.405.480          (5.772.405.480)                      -
    Supply                                                      -           7.991.118.576           7.991.118.576
    Prepaid expenses                                2.643.625.444            (536.113.611)          2.107.511.833
    Down payment                                      356.208.390            (256.208.390)            100.000.000

                                                                                                                61
Page 158
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

40. RESTATEMENT OF FINANCIAL STATEMENTS (Continued)

                                                               December 31, 2022
                                              Previously
                                               Reported           Adjustment          Restated
   Non-Current Assets
    Deferred tax assets                                    -       1.009.964.008      1.009.964.008
    Other receivables
      Third party                                          -         462.975.185        462.975.185
      Related parties                                      -       4.748.529.904      4.748.529.904
    Investments in associated entities                     -          47.500.000         47.500.000
    Investment down payment                                -         441.355.556        441.355.556
    Investment                                10.036.077.883     (10.036.077.883)                 -
    Fixed assets                              50.570.246.768       6.096.184.768     56.666.431.536
    Right of use assets                                    -       2.036.113.611      2.036.113.611
    Other non-current assets                               -         123.662.390        123.662.390

   Short-term liabilities
    Accounts payable - third parties          12.429.332.006          749.273.520    13.178.605.526
    Accrued expenses                           3.891.810.505        1.268.606.902     5.160.417.407
    Tax debt                                   5.652.152.939        1.379.607.151     7.031.760.090
    Other debts                                2.200.000.000       (2.200.000.000)                -
    Long term liabilities
      due in one year:
      Consumer financing debt                   919.476.675         (321.226.373)      598.250.302

   Long Term Liabilities
     Other payables - related parties                      -       2.700.000.000      2.700.000.000
     Long term liabilities -
       after deducting that part
       due in one year:
       Consumer financing debt                             -         670.347.045        670.347.045
     Employee benefits liabilities                         -       2.019.863.286      2.019.863.286

   Equity
   Attributable equity
     to the owners of the parent entity
     Additional paid-in capital                            -        7.271.363.600     7.271.363.600
     Tax amnesty                               7.271.363.600       (7.271.363.600)                -
     Retained earnings - Not yet determined
        its use                               52.883.558.308       4.954.613.174     57.838.171.482
     Other comprehensive income                            -          (9.993.078)        (9.993.078)
   Non-controlling interests                               -         165.160.955        165.160.955




                                                                                                  62
Page 159
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

40. RESTATEMENT OF FINANCIAL STATEMENTS (Continued)

                                                               December 31, 2022
                                           Previously
                                            Reported               Adjustment                Restated
   PROFIT LOSS AND INCOME STATEMENTS
   OTHER COMPREHENSIVE CONSOLIDATED
   Income                               168.463.942.571            41.244.598.401        209.708.540.972
   Cost of revenue                     (103.112.903.418)          (19.091.377.858)      (122.204.281.276)
   Selling expenses                     (13.660.041.143)           (1.741.617.119)       (15.401.658.262)
   General and administrative expenses  (21.347.965.520)          (14.086.145.002)       (35.434.110.522)
   Financial burden                                   -            (1.392.446.782)        (1.392.446.782)
   Depreciation expense                    (504.825.686)              504.825.686                      -
   Other income                                       -             1.385.567.977          1.385.567.977
   Other expenses                                     -            (1.155.311.180)        (1.155.311.180)
   Other income - net                     4.053.249.465            (4.053.249.465)                     -
   Income tax expense - net              (7.761.437.200)           (1.755.632.153)        (9.517.069.353)
   Net profit                            26.130.019.069              (140.787.495)        25.989.231.574
   Other comprehensive income -
     net                                              -                88.141.373               88.141.373
   Net comprehensive profit                           -            26.077.372.947           26.077.372.947

   CONSOLIDATED STATEMENT OF
   CASH FLOWS
   Operating cash flow                     35.915.777.042          (1.842.606.209)           34.073.170.833
   Investment cash flow                   (30.109.737.134)          8.308.753.081           (21.800.984.053)
   Funding cash flow                         (542.471.148)         (2.855.531.402)           (3.398.002.550)


                                                        January 1, 2022/December 31, 2021
                                           Previously
                                            Reported               Adjustment                Restated
   STATEMENT OF FINANCIAL POSITION
   CONSOLIDATED
   Current assets
    Cash                                   4.382.562.228            4.810.458.452            9.193.020.680
    Accounts receivable
       Third party                         2.792.810.613              961.657.195            3.754.467.808
       Related parties                                 -              371.653.058              371.653.058
    Other receivables
       Third party                           462.975.185             (445.475.185)              17.500.000
       Related parties                     6.686.767.712           (6.686.767.712)                       -
    Supply                                             -            1.995.454.491            1.995.454.491
    Prepaid expenses                         295.558.778             (253.336.500)              42.222.278
    Down payment                             232.546.000              (77.758.923)             154.787.077


                                                                                                          63
Page 160
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

40. RESTATEMENT OF FINANCIAL STATEMENTS (Continued)

                                                           January 1, 2022/December 31, 2021
                                              Previously
                                               Reported               Adjustment                Restated
   Non-Current Assets
    Deferred tax assets                                     -            812.463.608             812.463.608
    Other receivables
      Third party                                          -             462.975.185              462.975.185
      Related parties                                      -           4.635.597.290            4.635.597.290
    Investments in associated entities                     -              47.500.000               47.500.000
    Investment                                 6.083.722.340          (6.083.722.340)                       -
    Fixed assets                              35.799.890.785          17.155.656.689           52.955.547.474
    Right of use assets                                    -             253.336.500              253.336.500

   Short-term liabilities
    Short term bank loans                      1.651.718.748           4.926.768.920            6.578.487.668
    Accounts payable - third parties          13.235.586.735           2.074.018.379           15.309.605.114
    Accrued expenses                           2.188.467.397             773.675.257            2.962.142.654
    Tax debt                                   3.699.463.232             676.171.321            4.375.634.553
    Other debts                                2.200.000.000          (2.200.000.000)                       -
    Long term liabilities
      due in one year:
      Consumer financing debt                               -          1.680.974.458            1.680.974.458

   Long Term Liabilities
     Other payables - related parties                       -          2.700.000.000            2.700.000.000
     Long term liabilities -
       after deducting that part
       due in one year:
       Consumer financing debt                              -            300.336.430              300.336.430
     Employee benefits liabilities                          -          1.743.559.004            1.743.559.004

   Equity
   Attributable equity
     to the owners of the parent entity
     Additional paid-in capital                            -           7.271.363.600            7.271.363.600
     Tax amnesty                               7.271.363.600          (7.271.363.600)                       -
     Retained earnings - Not yet determined
        its use                               26.753.539.239           5.132.826.273           31.886.365.512
     Other comprehensive income                            -             (97.791.150)             (97.791.150)
   Non-controlling interests                               -             127.392.050              127.392.050




                                                                                                            64
Page 161
PT REMALA ABADI Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended 31 December 31, 2023 and 2022
(Expressed in Rupiah, unless otherwise stated)

40. RESTATEMENT OF FINANCIAL STATEMENTS (Continued)

                                                       January 1, 2022/December 31, 2021
                                          Previously
                                           Reported               Adjustment                Restated
   PROFIT LOSS AND INCOME STATEMENTS
   OTHER COMPREHENSIVE CONSOLIDATED
   Income                              117.886.366.323            37.374.807.593       155.261.173.916
   Cost of revenue                     (77.330.377.542)          (20.904.686.024)      (98.235.063.566)
   Selling expenses                                  -           (11.815.887.457)      (11.815.887.457)
   General and administrative expenses               -           (26.349.709.838)      (26.349.709.838)
   Financial burden                                  -            (2.166.528.110)       (2.166.528.110)
   Other income                                      -               764.940.792           764.940.792
   Other expenses                                    -            (1.909.758.025)       (1.909.758.025)
   Operational expenses                (26.411.254.398)           26.411.254.398                     -
   Other income - net                    2.575.715.902            (2.575.715.902)                    -
   Income tax expense - net             (3.355.750.420)             (740.663.806)       (4.096.414.226)
   Net profit                           13.364.699.865            (1.911.946.379)       11.452.753.486
   Other comprehensive income -
     net                                             -               (97.815.653)             (97.815.653)
   Net comprehensive profit                          -            11.354.937.833           11.354.937.833

   CONSOLIDATED STATEMENT OF
   CASH FLOWS
   Operating cash flow                    18.349.308.647            (841.915.577)          17.507.393.070
   Investment cash flow                   (7.889.023.242)          4.239.424.677           (3.649.598.565)
   Funding cash flow                      (9.070.878.280)          8.582.009.022             (488.869.258)




                                                                                                        65

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Published4 Jun 2024
Pages161
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Names mentioned 122 people and organisations named in the text · linked when the evidence is strong

linked org Mustika Ratu p.11 ×14
linked person Verah Wahyudi Singgih Wong p.19 ×18
linked person RICHARD KARTAWIJAYA p.45 ×8
linked org PT. Graha Teknologi Nusantara p.47 ×3
linked person Samuel Adi Mulia p.48 ×7
linked org Satria Antaran Prima Tbk p.48 ×5
linked org Asian Development Bank p.52
linked org PT Hutama Karya p.53 ×4
linked org Jasa Marga p.54 ×2
linked person Maureen Graciela p.77
linked person Moh Reza Pahlevi p.107
linked org Bank Mandiri (Persero) Tbk p.122 ×2
linked org Bank Central Asia Tbk p.122 ×17
linked org Bank Permata Tbk p.122 ×2
linked org Sumber Alfaria Trijaya Tbk p.122 ×2
linked org Asuransi Bina Dana Arta Tbk p.130 ×2
linked org Bank OCBC NISP Tbk p.132 ×8
linked person Budi Aditya Erna Mulyanto. p.133 ×18
linked person Verah Wahyudi S Wong. p.134 ×2
linked org PT Jejaring Mitra Persada p.135
linked org PT Voksel Electric p.135
linked org PT Federal International Finance p.136 ×5
possible org Bursa Efek Indonesia p.5 ×4
possible — Verah Wahyudi Wong · President Commissioner p.74
possible person Sudarmana p.79
possible org Budiman p.79
possible org Bank Rakyat Indonesia (Persero) Tbk p.122 ×2
possible person Agus Riyanto p.127
unresolved org Remala Abadi Tbk. p.3 ×401
unresolved person Maliangkay p.17
unresolved person H. Integration p.17
unresolved org PT Solusi Aplikasi Andalan Semesta p.18 ×5
unresolved org PT Network Fiber Indonesia p.18 ×3
unresolved org PT REMALA ABADI TBK'S BUSINESS STRATEGY PRIORITIZES TARGETED p.26
unresolved org Sukimto & Rekan p.28
unresolved person Ray Nainggolan p.28
unresolved org Bank Indonesia p.43 ×3
unresolved org PT IN p.44
unresolved org PT Remala p.44 ×2
unresolved org Abadi Tbk p.44 ×2
unresolved org PT. Ander Cakra Buana p.47 ×2
unresolved org PT. Remala Abadi. Prior p.48 ×2
unresolved org PT. Klaai Dendan Lestari p.48 ×2
unresolved org PT. Pat Petulai Energi p.48 ×2
unresolved org Intan Baruprana Finance Tbk p.48 ×4
unresolved org PT Hutama Karya. With p.53
unresolved org PT Remala Aba-di's p.54
unresolved org PT Remala Abadi's p.54
unresolved org PT. Wing Surya Surabaya p.57 ×2
unresolved person Alamsyah Saragih Independent Commissioner Ahmad Alamsyah Saragih · Chairman p.58 ×12
unresolved org PT Remala Abadi Tbk's p.63
unresolved person Ensures · Corporate Secretary p.63
unresolved org PT Complaint Form p.64
unresolved person Nomination · President Director p.68 ×2
unresolved org Financial Services Authority p.72 ×4
unresolved org Ministry of Law and Human Rights p.75
unresolved person Mau-reen Graciela p.77
unresolved org PT Lautan Rejeki Luas p.79
unresolved person Informatics Engineering p.80
unresolved org PT Inti Sumber Baja Sakti p.80
unresolved org PT Electronic Data Interchange Indonesia By p.80
unresolved org PT Hashmicro Solusi Indonesia p.81
unresolved org PT Armindo Mandiri p.81
unresolved org PT Air Mas Perkasa p.81
unresolved person Fajra Rizqi Nasution · Notaris p.105 ×4
unresolved org Minister of Justice p.105
unresolved person Notary Elizabeth Karina Leonita · Notaris p.105 ×9
unresolved org Minister of Law p.105 ×3
unresolved org Minister of Law and Human Rights p.105 ×11
unresolved — Hong Chintia · Corporate Secretary p.105
unresolved org PT PC p.106 ×7
unresolved org PT Solusi Aplikasi Andalan p.106
unresolved org PT Akselerasi Informasi p.106
unresolved person Anita Munaf p.106
unresolved person Idriansyah Rizal p.106 ×2
unresolved person Novita Sari Sianturi p.107
unresolved org PT Akselerasi Informasi Indonesia p.107 ×2
unresolved person Kumala Tjahjani Widodo p.107
unresolved org PT Comtronics Systems p.122
unresolved org PT Media Andalan Nusa p.122
unresolved org PT Total Info Kharisma p.122
unresolved org PT Wasantara Network Services p.122
unresolved org Yayasan BPK Penabur KPS p.123
unresolved person Penabur KPS p.123
unresolved org PT Netco Trans Nusa p.124 ×2
unresolved org PT Anchor Putra Indonesia p.124
unresolved org PT Fiber Media Indonesia p.124 ×8
unresolved org PT Jangkar Putra Indonesia p.124
unresolved org PT Fajar Mitra Krida p.125 ×2
unresolved org PT Fiber Teknologi Indonesia p.125
unresolved org PT Indonesian Fiber Network p.125 ×2
unresolved org PT Quinsis Lintas Mitra p.127
unresolved org PT Sentra Inovasi Prima p.127
unresolved org PT Jaringan Fiber Indonesia p.127 ×4
unresolved org PT Indonesia Fiber Network p.127
unresolved person Nova Helida · Notaris p.127
unresolved org PT Broadband Network Indonesia p.128 ×3
unresolved person Erick Maliangkay p.128
unresolved org PT Alindatama Saktib Rother p.130
unresolved org PT Asuransi Raksa Pratikara p.131
unresolved org PT BCA Finance p.131 ×4
unresolved org PT Mega Finance p.131 ×4
unresolved org PT Toyota Astra Finance Services p.131
unresolved org PT Mustika Ratu Center p.132 ×7
unresolved person KH Mansyur p.134
unresolved org PT AFC Dinamika Indonesia p.135
unresolved org PT Antar Jaringan Nusantara p.135
unresolved org PT Dinamika Cipta Solusi p.135
unresolved org PT UOB KAI HIAN Sekuritas p.135
unresolved org PT Multidata Rancana Prima p.135
unresolved person Sutisna p.135
unresolved org PT Milenial Inti Telekomunikasi p.135
unresolved org PT Toyota Astra Financial Services p.136
unresolved org PT Toyota Astra Finance Service p.137 ×3
unresolved org PT Fiber Network p.138
unresolved org PT Fiber Network Indonesia p.138 ×2
unresolved org Minister of Justice and Human Rights p.143
unresolved person Achmad Zainudin · Notaris p.143
unresolved org Bank Administration p.149
unresolved org PT Fiber Networks Indonesia p.150 ×4
unresolved org PT Fiber Networks p.151
unresolved org Bank United States Dollar p.152

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