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Page 1
Painting a Beautiful
Picture of Indonesia




                    AR 2023
                        Template
                        Template




   ANNUA L R E P O RT   2023
Page 2

          
Page 3
                                         Painting a Beautiful
                                         Picture of Indonesia
                  For over 4 decades, PT Avia Avian Tbk (hereinafter referred to as the “Company” or “AVIA” or
                  “we”) has been bringing beautiful colors to the lives of millions of families in Indonesia, by
                  providing a diverse range of high-quality and eco-friendly paint products. As a pioneer in the
                  paint manufacturing industry, we recognize the paramount importance of making positive
                  contributions to both the environment and the community. Thus, since its inception, the
                  Company has not only brought colors through its products, but also through continuous
                  commitment to responsible business practices.

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




Disclaimer and
Limitation of Liability
Our 2023 Annual Report is prepared to comply with the requirement to report our performance for the period of
January 1, 2023 to December 31, 2023 to the regulators and stakeholders. This Annual Report, among others, is
prepared based on Financial Services Authority Regulation No. 29/POJK.04/2016 concerning Annual Reports
of Issuers or Public Companies with contents in accordance with Financial Services Authority Circular Letter
No. 16/SEOJK.04/2021 concerning Forms and Contents of an Annual Report of Issuers or Public Companies.

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




                                                         2023 Annual Report - PT Avia Avian Tbk              1
Page 4
Competitive
          Strengths
                                                       1
                                            Leading paint producer in
                                           Indonesia with strong brand
                                                  recognition.
                 6
    Production excellence, which                                                        2
 is underpinned by the Company’s
vertically integrated manufacturing                                            Well-positioned to gain
    capabilities and in-house raw                                           advantages of the favorable
 material production, is supported                                           industry growth dynamics
    by the Company’s long-term                                                      in Indonesia.
       relationships with key
               suppliers.




                 5                                                                      3
                                                                           Extensive distribution network
    Ability to offer differentiated
                                                                            and access across Indonesia.
      and innovative solutions
                                                                          Supported by 118 wholly-owned
   supported by industry-leading
                                                                              distribution centers and
research and development capabilities
                                                                         14 wholly-owned mini-distribution
       in decorative paints and
                                                                            centers, and 40 independent
               coatings.
                                                                                distribution centers.
                                                       4
                                              Highly committed and
                                          visionary management team
                                            with a strong track record
                                                    of success.




  2              PT Avia Avian Tbk - 2023 Annual Report
Page 5
                                                                       Painting a Beautiful Picture of Indonesia




2023 Performance




        FINANCIAL                               PRODUCTION                               HUMAN
      PERFORMANCE                              PERFORMANCE                             RESOURCES


           Net Revenue                             Sidoarjo Plant                   Number of Employees*

      IDR
           7,016.88                               130,325                                 8,554
                Billion                               Metric Tons                           Persons

                4.82%                                   1.46%                                5.20%


                                                                                      Number of Female
        Profit for the Year                         Serang Plant
                                                                                        Employees*

      IDR
            1.643,10                                50,215                                1,740
                Billion                               Metric Tons                           Persons

                17.33%                                 18.06%                                6.10%



       Earnings per Share                         Total Production                   Total Training Hours

          IDR
               26.51                              180,540                               63,526
                                                      Metric Tons                            Hours

                17.25%                                  5.59%                               49.71%




* Including Employees of Subsidiaries and Outsourced Employees.




                                                          2023 Annual Report - PT Avia Avian Tbk        3
Page 6
Table of Contents
Disclaimer and Limitation           1
of Liability
Competitive Strengths               2
2023 Performance                    3
Table of Contents                  4
                                         Company Profile                          Management
                                         Company Identity                    34
                                                                                  Discussion and
                                         Milestones                          36
                                                                                  Analysis
                                         Brief History                       38   Economic Overview                 78
                                         Company Vision, Mission,            40   Industry Overview                 78
                                         and Values
                                                                                  Operational Overview              79
                                         Meaning of Avian Logo               42
Performance                              Business Activities                 43
                                                                                  Marketing and Distribution        82
Highlights                               Products and Services               45
                                                                                  Aspect
                                                                                  Financial Overview                83
                                         Manufacturing Facilities            48    Consolidated Statement of
Key Financial Data Overview         8                                                                               83
                                         Operational Areas                   49    Financial Position
Operational Overview               10
                                         Organizational Structure            50    Consolidated Statement           86
Share Overview                     10
                                         Membership in Associations          51    of Profit or Loss and Other
Corporate Action                   11                                              Comprehensive Income
                                         Profile of the Board of             52
Share Trading Information          11                                              Consolidated Statement of        87
                                         Commissioners
Information regarding Bonds,       11                                              Cash Flows
                                         Profile of the Board of Directors   55
Sukuk, or Convertible Bonds                                                        Solvency                         87
                                         Shareholder Information             61
Significant Events                 12                                              Collectability of Account        88
                                         Main and Controlling                62
Awards and Certifications          16                                              Receivables
                                         Shareholders
                                                                                   Capital Structure                88
                                         Chronology of Share Listing         63
                                                                                   Capital Goods Investment         89
                                         Sharia Securities                   63
                                                                                   Material Commitments related     89
                                         Company’s Stock Index               64    to Capital Goods Investment
                                         Chronology of Other Securities      64    Realization on Use of Proceeds   90
                                         Listing                                   from Public Offering
                                         Corporate Structure                 64    Dividend Policy and Distribution 90
                                         Subsidiaries, Associates, and       65
Management                               Joint-Ventures
                                                                                   Material Information
                                                                                   Concerning Investment,
                                                                                                                    91

Report                                   Capital Market Supporting           66    Expansion, Divestment,
                                         Institutions and Professions              Merger/Consolidation,
The Board of Commissioners        24     Information Access                  67    Acquisition, and/or
Report                                                                             Debt/Capital Restructuring
                                         Human Resources                     67
The Board of Directors Report     28     Information Technology              73




      4              PT Avia Avian Tbk - 2023 Annual Report
Page 7
                                                                           Painting a Beautiful Picture of Indonesia




 Material Transactions Containing    91   Mechanism of Good Corporate       100    Employee Stock Allocation             151
 Conflicts of Interest or                 Governance                               Program
 Transactions with Related Parties        General Meeting of Shareholders 100      Information Disclosure Policy         151
 Comparison of Target and            93   The Board of Commissioners        114    Whistleblowing System                 152
 Realization in 2023
                                          The Board of Directors            119    Anti-Corruption Policy                154
 Business Prospects                  93
                                          The Board of Commissioners and 123       Policy to Prevent Insider Trading     154
 Business Development Strategy       94   the Board of Directors Diversity         Policy on Fulfillment of Creditors’ 154
 2024 Projection                     94   Policy                                   Rights
 Changes in Accounting Policies      94   Nomination and Remuneration of 123       Conflict of Interest Guidelines       155
 Changes in Laws and                 95   the Board of Commissioners and
                                          the Board of Directors                   Communication Policy Guidelines 155
 Regulations with Significant
                                          Sharia Supervisory Board                 Policy Guideline in Resignation       155
 Impacts on the Company                                                     124
                                                                                   Procedure of the Board of
 Material Information after the      95   Committees Under the Board of     125    Commissioners and the Board
 Financial Statement Date                 Commissioners                            of Directors in the Event of
 Business Continuity Information     95    The Audit Committee              125    Involvement in Financial Crime
                                           The Nomination and               129    Affiliated Transaction Guidelines     155
                                           Remuneration Committee                  Implementation of Corporate           156
                                           The Good Corporate               132    Governance Guidelines for
                                           Governance Committee                    Public Companies
                                          Committees Under the Board of     134
                                          Directors
                                           The Related Party Transaction    134
                                           Committee
Good Corporate                            The Corporate Secretary           137

Governance                                The Internal Audit Unit           140
                                          Public Accountant                 143
Commitment to
Implementing Good
                                     98   Internal Control System           144    Social and
 Corporate Governance
                                          Risk Management System            146
                                                                                   Environmental
                                          Legal Disputes with Material      149
Basis of Good Corporate              99
                                          Impacts and the Administrative           Responsibility
Governance Implementation
                                          Sanctions Imposed
Structure of Good Corporate          99                                            Sustainability Performance            160
                                          Code of Conduct                   149
Governance                                                                         Overview




Statement of Members of the Board of Commissioners and Members of the Board of Directors on                              163
the Responsibility for the 2023 Annual Report of PT Avia Avian Tbk
Consolidated Financial Statements of PT Avia Avian Tbk and Subsidiaries                                                  165




                                                              2023 Annual Report - PT Avia Avian Tbk                 5
Page 8
Performance
Highlights




 6   PT Avia Avian Tbk - 2023 Annual Report
Page 9
2023 Annual Report - PT Avia Avian Tbk   7
Page 10
Key Financial Data Overview
                                                                                     (in millions Rupiah, unless otherwise stated)

                                       Description                                2023             2022              2021

Consolidated Statement of Financial Position
Total Assets                                                                    11,166,987      10,792,122        10,873,760
Total Current Assets                                                             8,957,425         8,716,715         8,886,439
Total Non-Current Assets                                                         2,209,562         2,075,407         1,987,321
Total Liabilities                                                                1,245,498       1,217,237         1,458,140
Total Current Liabilities                                                        1,175,130         1,108,163         1,339,681
Total Non-Current Liabilities                                                       70,368           109,074           118,459
Total Equity                                                                     9,921,489       9,574,885         9,415,620
Total Liabilities and Equity                                                    11,166,987      10,792,122        10,873,760
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Net Revenue                                                                      7,016,882         6,694,171         6,779,643
Cost of Goods Sold                                                              (3,833,546)      (3,976,771)       (3,954,110)
Gross Profit                                                                     3,183,336         2,717,400         2,825,533
Profit Before Income Tax Expense                                                 1,992,143         1,745,247         1,844,705
Income Tax Expense                                                               (349,047)         (344,882)         (410,154)
Profit for the Year                                                              1,643,096         1,400,365         1,434,551
Total Other Comprehensive Income/(Loss), Net                                        81,403         (127,454)            (3,701)
Total Comprehensive Income for the Year                                          1,724,499         1,272,911         1,430,850
Profit for the Year Attributable to:
  Owners of the Parent Entity                                                    1,642,166         1,400,561         1,434,613
  Non-controlling Interests                                                            930              (196)              (62)
Total Comprehensive Income for the Year Attributable to:
  Owners of the Parent Entity                                                    1,723,608         1,273,081         1,430,912
  Non-controlling Interests                                                            891              (170)              (62)
Basic and Diluted Earnings per Share Attributable to the Owners of the Parent
                                                                                     26.51              22.61             25.54
(full Rupiah)
Consolidated Statement of Cash Flows
Net Cash Flows Generated from Operating Activities                               1,585,535         1,461,499         1,271,999
Net Cash Flows (Used in)/Provided from Investing Activities                     (1,082,896)          559,932       (4,564,022)
Net Cash flows (Used in)/Provided from Financing Activities                     (1,440,808)      (1,146,154)         3,218,853
Consolidated Financial Ratio
Profitability Ratio (%)
Consolidated Profit for the Year to Consolidated Net Revenue                         23.42              20.92             21.16
Consolidated Profit for the Year to Consolidated Total Assets                        14.71              12.98             13.19
Consolidated Profit for the Year to Consolidated Total Equity                        16.56              14.63             15.24
Liquidity Ratio (x)
Consolidated Total Current Assets to Consolidated Total Current Liabilities            7.62              7.87              6.63
Solvency Ratio (x)
Consolidated Total Liabilities to Consolidated Total Assets                            0.11              0.11              0.13
Consolidated Total Liabilities to Consolidated Total Equity                            0.13              0.13              0.15




      8                PT Avia Avian Tbk - 2023 Annual Report
Page 11
                                                                                                 Painting a Beautiful Picture of Indonesia
                                                                                                                        Performance Highlights




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


     85.21        (0.75)      3.47       YoY (%)        22.92        (16.52)          2.32      YoY (%)       100.99            1.69      3.62        YoY (%)

                                                                                                                                        9,921,489
                            11,166,987
                                                     1,458,140
                                                                   1,217,237        1,245,498                             9,574,885
                                                                                                            9,415,620
  10,873,760
               10,792,122




    2021          2022        2023                     2021          2022            2023                     2021          2022         2023




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


     18.29        (1.26)      4.82       YoY (%)        22.50        (16.36)         15.85      YoY (%)        26.26        (2.38)       17.33        YoY (%)


                            7,016,882

                                                     1,989,793                                                                          1,643,096
  6,779,643                                                                         1,927,857               1,434,551     1,400,365
                6,694,171
                                                                   1,664,169




    2021          2022        2023                     2021          2022            2023                     2021          2022         2023




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

     6.74         (1.14)      11.94      YoY (%)        72.97        18.58           (3.09)     YoY (%)       (38.84)       (17.91)      (1.25)       YoY (%)



                                                                         7.87x       7.62x
                                                                                                               0.15x
                                                                                                                                0.13x    0.13x
    21.16%        20.92%     23.42%
                                                        6.63x




    2021          2022        2023                     2021          2022            2023                     2021          2022         2023




                                                                                 2023 Annual Report - PT Avia Avian Tbk                           9
Page 12
Operational Overview
                                                                                                   (in millions Rupiah, unless otherwise stated)

                                       Description                                              2023             2022              2021

 Architectural Solutions
                                                                                              5,618,025         5,384,019         5,305,745
 (Wall, Wood and Metal, Waterproofing, Wood Care, and Others)
 Trading Goods (Pipes, Furniture, and Supporting Products)                                    1,398,857         1,310,152         1,473,898
 Total Net Revenue                                                                            7,016,882       6,694,171         6,779,643




Share Overview

                                   Shares Price                                              Number of
                                                                   Transaction                                           Market
                                                                                            Outstanding
    Period           Lowest          Highest         Closing         Volumes                                          Capitalization
                                                                                               Shares
                      (IDR)           (IDR)           (IDR)          (Shares)                                             (IDR)
                                                                                              (Shares)
                                                                2023
 Quarter 1               565           685             595             512,099,400          61,953,555,600          36,862,365,582,000
 Quarter 2               565           760             665             492,363,100          61,953,555,600          41,199,114,474,000
 Quarter 3               550           670             560             536,594,400          61,953,555,600          34,693,991,136,000
 Quarter 4               422           575             500         1,911,509,200            61,918,936,800          30,976,777,800,000
                                                                2022
 Quarter 1               685           930             780             2,200,412,500         61,953,555,600          48,323,773,368,000
 Quarter 2               685           855             815             2,347,666,700         61,953,555,600          50,492,147,814,000
 Quarter 3               775           960             795             2,456,478,000         61,953,555,600          49,253,076,702,000
 Quarter 4               620           845             630             1,466,947,900         61,953,555,600          39,030,740,028,000


Transaction Volumes                                                                                                          Closing Price
(Shares)                                                                                                                             (IDR)
500,000,000                                                                                                                              1,000
450,000,000                                                                                                                                900
400,000,000                                                                                                                                800
350,000,000                                                                                                                                700
300,000,000                                                                                                                                600
250,000,000                                                                                                                                500
200,000,000                                                                                                                                400
150,000,000                                                                                                                                300
100,000,000                                                                                                                                200
 50,000,000                                                                                                                                100
             0                                                                                                                                0
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                                       2022                                                      2023

                                           Transaction Volumes (Shares)                Closing Price (IDR)




       10               PT Avia Avian Tbk - 2023 Annual Report
Page 13
                                                                            Painting a Beautiful Picture of Indonesia
                                                                                               Performance Highlights




Corporate Action




In accordance with the resolutions of the Extraordinary General Meeting of Shareholders on December 7, 2023, the Company
is to execute buyback of our shares that have been issued and listed on the Indonesia Stock Exchange, in a maximum amount
of 1,425,000,000 shares or approximately 2.3% of the entire issued and paid-up capital. The allocated funds for the shares
buyback amount to a maximum of IDR1,000,000,000,000.- (including transaction costs, trading fees, and other associated
expenses), and the transaction is to be carried out in phases over the next 18 months.

This transaction is carried out in compliance with the provisions of Financial Services Authority Regulation
No. 30/POJK.04/2017 concerning the Buyback of Shares Issued by Public Companies. Implementation of the shares buyback is
a part of our efforts toward optimal capital management, and a realization of our commitment to increase and safeguard value
for the shareholders.

On December 27, 2023, the Company repurchased 34,618,800 ordinary shares of the Company through the Indonesia Stock
Exchange. This corporate action changed the number of outstanding shares of the Company from the initial 61,953,555,600
shares to become 61,918,936,800 shares as at the end of 2023.




Share Trading Information
During 2023, we did not experience any temporary suspension of share trading or delisting.




Information regarding Bonds, Sukuk or
Convertible Bonds
Until the end of 2023, we have never issued bonds, sukuk, or convertible bonds.




                                                             2023 Annual Report - PT Avia Avian Tbk              11
Page 14
Significant Events

JANUARY 2023
                                                                                   We strengthened our product line in the marine segment by
                                                                              19   introducing Admiral Anti Fouling and Admiral Thinner Serbaguna.
                                                                                   Admiral Anti Fouling is a solvent-based matrix binder coating with
                                                                                   a special formulation that protects and prevents marine organisms
                                                                                   such as clams, barnacles (hard fouling), algae & weeds (soft fouling)
                                                                                   from sticking to the hull of boats, ships, and bridge structures. This
                                                                                   product is applied to submerged/water-exposed underside of
                                                                                   boats, sailboats, and motorboats with wood or metal-based boards.
                                                                                   In addition, anti-fouling coating is also used to prevent corrosion
                                                                                   so that a ship’s structure or components are not quickly damaged
                                                                                   and worn out. Meanwhile, Admiral Thinner Serbaguna is a thinner
                                                                                   specifically formulated to dilute and facilitate the application of the
                                                                                   marine or anti-fouling coating, thus resulting in a better finish. This
                                                                                   product can be used to dilute various types of matrix binder-based
                                                                                   or epoxy-based marine coating.




FEBRUARY 2023




     Understanding common needs and problems in wall paint                         Dull-looking wooden furniture leaves an impression of poor
 1   application is essential. With interior walls, frequent issues include   1    maintenance, especially when placed in exterior locations where
     uneven color and damaged or cracked walls. As for exterior walls,             weather conditions cause the surface to lose its color and thus, its
     exposure to sunlight and changing weathers may lead to cracking               appeal. We respond to this challenge by launching Boyo Politur
     and discoloration. Therefore, we introduced Brilliant Cat Tembok              Melamin, a product that provides protection for both exterior and
     Interior and Brilliant Cat Tembok Eksterior to address these needs            interior wood surfaces. In addition to excellent weather resistance, this
     and problems. Brilliant Cat Tembok Interior is capable of concealing          product boasts a high gloss finish. Its weather-resistant quality has been
     imperfections on the walls and preventing the growth of mold and              proven through various laboratory tests, preventing rapid discoloration
     mildew. Meanwhile, Brilliant Cat Tembok Eksterior can cover hairline          to wood coated with Boyo Politur Melamin. The coated wood surface
     cracks on the wall’s surface and enhance the aesthetic value of the           is also non-sticky and leaves no trace of stains, presenting a shinier,
     house’s facade. Additionally, this product has undergone a series of          smoother, thicker, and long-lasting appearance.
     resistance tests against various common issues faced by exterior
     walls, proving to its exceptional quality.




     12             PT Avia Avian Tbk - 2023 Annual Report
Page 15
                                                                                           Painting a Beautiful Picture of Indonesia
                                                                                                                      Performance Highlights




FEBRUARY 2023                                                                 APRIL 2023




    Rust and peeling of synthetic paint on metal surfaces is a highly                Exposure to seawater, sunlight, and changing weather can damage
8   common problem, most frequently resulting from inadequate                   1    fishing boats, and repairing such damage requires a wood filler
    preparation of the metal surface being painted. In response to this              capable of filling holes in the wooden boats. Responding to this
    challenge, we introduced Avian Cling Zinc Chromate, made with                    opportunity, we introduced our latest flagship product, Admiral
    high-quality alkyd resin. This product is specially formulated to                Wood Filler Epoxy, specifically formulated with sawdust to fill gaps
    provide protection against rust, in addition to its excellent sealing            between wood, joints, and patch holes in wooden boats. It is highly
    power and quick-dry quality.                                                     suitable for application on wooden boats due to its excellent water
                                                                                     resistance, stiffness, flexibility, and anti-shrinkage properties. Admiral
                                                                                     Wood Filler Epoxy is a ready-to-use product, eliminating the need for
                                                                                     additional sawdust or dilution.




MAY 2023
                                                                                     The Company launched Admiral Cat Kapal, our new product in the
                                                                                1    marine segment. It is an alkyd-based coating for metal and wood
                                                                                     surfaces, specifically formulated for strong resistance against marine
                                                                                     ecosystems, with excellent sealing power and a high-gloss finish. The
                                                                                     product is ideal for application on the ship’s superstructures, engine
                                                                                     rooms, corridors, and masts, both for exterior and interior purposes.




                                                                            2023 Annual Report - PT Avia Avian Tbk                             13
Page 16
MAY 2023                                                                      AUGUST 2023




     We presented our new product in the wall paint segment, Aries                 We introduced a new product in the wall paint segment, Avitex Wizz.
22   Bling. This product addresses market demands for economical wall          1   It is specifically formulated to be 2 times thicker and can be diluted
     paint that is resistant to chalking and discoloration, and comes in           by up to 40% for more cost-saving, in addition to its excellent quick-
     various color options. Aries Bling can be applied to various surfaces,        dry property. It also comes with a 3-year warranty to provide the
     including walls, concrete, bricks, asbestos-based ceilings, mortar            best sealing power and conceal imperfections on the interior walls
     boards, and more.                                                             of your homes. Avitex Wizz can also be applied to ceilings, boards,
                                                                                   gypsum, and more.




AUGUST 2023
                                                                                   A proper painting of exterior walls normally requires three steps:
                                                                              21   primer, top coat, and waterproofing. However, these steps are often
                                                                                   seen as impractical and costly. To address this challenge, we presented
                                                                                   our latest product, No Drop Plus 3 in 1, featuring the essential 3-in-1
                                                                                   functions required for high-quality exterior wall painting. Moreover,
                                                                                   this product boasts better sealing power, allowing for cost savings
                                                                                   without compromising on quality. No Drop Plus 3 in 1 provides
                                                                                   both aesthetic appeal and leak-proof protection for homes that
                                                                                   can last for over 7 years.




                                                                                   We launched a new, more economical product in the waterproofing
                                                                              28   segment, namely the No Drop Basic. This product incorporates
                                                                                   waterproofing technology to protect both exterior and interior
                                                                                   walls. It boasts excellent elasticity and protection against mold and
                                                                                   mildew, providing surface protection for up to 4 years. No Drop Basic
                                                                                   is ideal for application on exterior and interior walls, as it holds a
                                                                                   green label certification for its environmental friendliness, making it
                                                                                   compatible with various surfaces, including GRC, asbestos, concrete
                                                                                   roofs, and water pipes.




     14             PT Avia Avian Tbk - 2023 Annual Report
Page 17
                                                                                           Painting a Beautiful Picture of Indonesia
                                                                                                                     Performance Highlights




SEPTEMBER 2023




     We introduced a new product in the adhesive segment, Avian Lem                   We proudly received the Katadata Corporate Sustainability Awards
 1   Epoxy Hemat. It is a 2-component adhesive with a special formulation       26    (KCSA) 2023 as the Overall Winner in the Chemicals Sector category.
     that contains no thinner and produces no pungent odor. Composed                  This award is an appreciation of our commitment and performance
     purely without any additives, Avian Lem Epoxy Hemat has excellent                in consistently contributing to the economic development of
     adhesion, is heat-resistant, and can be applied to various substrates            Indonesia while prioritizing sustainability principles in each of our
     such as iron, glass, ceramics, wood, aluminum, and plastic.                      business operations. We are acknowledged to have demonstrated
                                                                                      steadfast commitment to building a sustainable value chain,
                                                                                      caring for social issues, responsibly protecting the environment
                                                                                      and biodiversity, as well as improving resource efficiency while
                                                                                      minimizing ecological impacts from our activities. This accolade
                                                                                      further fuels our determination to continually enhance the quality
                                                                                      of sustainability principles implementation in the future.




OCTOBER 2023                                                                   DECEMBER 2023




     The Company presented a new product in the wood and metal                        We expanded our national distribution network by increasing
 1   segment, namely Avian 3 in 1 Anti Karat. This product works                31    the number of our wholly-owned distribution to 118 distribution
     simultaneously as a base paint and top coat. It offers excellent                 centers located in 34 provinces and 98 cities in Indonesia, as well
     sealing power, high quality, and glossy finish, while providing                  as 14 mini distribution centers in several cities. These distribution
     maximum protection against rust, extreme weather, mold, and                      centers are operated by our Subsidiaries, namely PT Tirtakencana
     termites. This product may be applied to various substrates,                     Tatawarna (“TKTW”) and PT Tirtakencana Batamindo (“TKBI”).
     such as iron, aluminum, galvanized, and wood, available in
     various attractive colors to enhance customers’ homes.




                                                                             2023 Annual Report - PT Avia Avian Tbk                         15
Page 18
Awards and Certifications

Awards




          1                  2                   3             4          5               6                  7


     Recipient of the “Prevention and Mitigation
 1                                                                 2   Zero Accident Award
     Programs of Covid-19 in the Workplace” Award
     Gold Category
     Organizer       : Ministry of Manpower of the                     Organizer    : East Java Governor
                       Republic of Indonesia
     Recipient       : PT Avia Avian Tbk                               Recipient    : PT Avia Avian Tbk
     Period          : 2023                                            Period       : 2023




     Overall Winner of the 2023 Katadata Corporate
 3                                                                 4   Going Green is Good for Your Business
     Sustainability Awards (KCSA)
     Chemicals Sector Category
     Organizer       : Katadata                                        Organizer    : Xurya Daya Indonesia
     Recipient       : PT Avia Avian Tbk                               Recipient    : PT Avia Avian Tbk
     Period          : 2023                                            Period       : 2023




                                                                       Indonesia Architectural Paints and Coatings
 5   National PROPER Green Rating                                  6
                                                                       Market Leadership Award
     Organizer       : Ministry of Environment and                     Organizer    : Frost & Sullivan
                       Forestry of the Republic of Indonesia
     Recipient       : PT Avia Avian Tbk                               Recipient    : PT Avia Avian Tbk
     Period          : 2023                                            Period       : 2023



     Green Industry Pioneer in Accelerating Sustainable Development in East Java
 7   Organizer       : East Java Governor
     Recipient       : PT Avia Avian Tbk
     Period          : 2023




     16          PT Avia Avian Tbk - 2023 Annual Report
Page 19
                                                                                                                                                                                                                                                         Painting a Beautiful Picture of Indonesia
                                                                                                                                                                                                                                                                            Performance Highlights




Certification
International Standardization Organization (“ISO”)



                                                                                                         Current issue date:              31 January 2023                   Original approval(s):
                                                                                                         Expiry date:                     27 February 2024                  ISO 9001 - 28 February 2007
                                                                                                         Certificate identity number:     10499302




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


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



                                             has been approved by LRQA to the following standards:

                                             ISO 9001:2015
                                             Approval number(s): ISO 9001 – 0044727

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


                                             The scope of this approval is applicable to:

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




                                             Luis Cunha

                                             ________________________
                                             Area Operations Manager - North Asia & SAMEA

                                             Issued by: LRQA Limited


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




                                                                                                                               1                                                                                                                     2



                Name of Certification                                                                                                                                                                                                    Organizer                           Validity Period

ISO 45001:2018 on Occupational Health and Safety
                                                                                                                                                                                                                                 PT Lloyd’s Register Indonesia      October 27, 2021 – October 26, 2024
Management System
ISO 14001:2015 on Environmental Management System                                                                                                                                                                                PT Lloyd’s Register Indonesia     February 19, 2022 – February 18, 2025
ISO 50001:2018 on Energy Management System                                                                                                                                                                                       PT Lloyd’s Register Indonesia         March 3, 2022 – March 2, 2025
ISO 9001:2015 on Quality Management System                                                                                                                                                                                       PT Lloyd’s Register Indonesia      January 31, 2023 – February 27, 2024
ISO/IEC 27001:2013 on Information Security
                                                                                                                                                                                                                                 Intertek Certification Limited     February 17, 2023 – October 31, 2025
Management System




Indonesian National Standard (“SNI”)




                                                                                                                               1                                                                                                                     2



Name of Certification           Product                                                                                                                  Type                                                                                          Organizer                        Validity Period

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




                                                                                                                                                                                                                                      2023 Annual Report - PT Avia Avian Tbk                   17
Page 20
Singapore Green Label




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



                AVITEX ALKALI RESISTING PRIMER                                                                               AVITEX WIZZ                                                                     BRILIANT EXTERIOR                                                                            NO DROP BASIC
                                     032-219-4089                                                                   032-219-4119                                                                             032-219-4150                                                                             032-219-4149
                             Environmentally Preferred Paint                                     Environmentally Preferred Paints & Surface Coatings                                      Environmentally Preferred Paints & Surface Coatings                                      Environmentally Preferred Paints & Surface Coatings
                  (In accordance to SEC Green Label Category 32: Paints and Surface Coatings)         (In accordance to SEC Green Label Category 32: Paints and Surface Coatings)              (In accordance to SEC Green Label Category 32: Paints and Surface Coatings)              (In accordance to SEC Green Label Category 32: Paints and Surface Coatings)

                             Validity: 19 January 2023 to 18 January 2025                                          Validity: 23 March 2023 to 22 March 2025                                                   Validity: 14 June 2023 to 13 June 2025                                                  Validity: 14 June 2023 to 13 June 2025




                                                1                                                                                2                                                                                       3                                                                                       4




                  The Singapore Environment Council hereby grant




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

                                   _____________________________

                     BRILLIANT CAT     TEMBOK
                                     JEN  TEO       INTERIOR                                                        SUNGUARD                                                                                  EVERGLO                                                                                 SUPERSILK
                                 Executive Director
                                 038-219-4164                                                                      032-219-3921                                                                             032-219-3926                                                                             032-219-3922
                           Singapore Environment Council
              Environmentally Preferred Paints & Surface Coatings                                Environmentally Preferred Paints & Surface Coatings                                      Environmentally Preferred Paints & Surface Coatings                                      Environmentally Preferred Paints & Surface Coatings

                                                                                                      (In accordance to SEC Green Label Category 32: Paints and Surface Coatings)              (In accordance to SEC Green Label Category 32: Paints and Surface Coatings)              (In accordance to SEC Green Label Category 32: Paints and Surface Coatings)
                   (In accordance to SEC Green Label Category 32: Paints and Surface Coatings)
                                                                                                              Validity: 25 November 2023 to 24 November 2025                                           Validity: 25 November 2023 to 24 November 2025                                          Validity: 25 November 2023 to 24 November 2025
                                 Validity: 19 July 2023 to 18 July 2025




                                             5                                                                                   6                                                                                        7                                                                                       8




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



                      AVITEX DAPUR & KAMAR MANDI                                                                    AQUAMATT                                                                   LENKOTE ALKALI RESISTING PRIMER                                                                         NO ODOR
                                032-219-3927                                                                       032-219-3923                                                                             032-219-3924                                                                             032-219-3925
              Environmentally Preferred Paints & Surface Coatings                                Environmentally Preferred Paints & Surface Coatings                                      Environmentally Preferred Paints & Surface Coatings                                      Environmentally Preferred Paints & Surface Coatings

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

                          Validity: 25 November 2023 to 24 November 2025                                      Validity: 25 November 2023 to 24 November 2025                                           Validity: 25 November 2023 to 24 November 2025                                          Validity: 25 November 2023 to 24 November 2025




                                             9                                                                           10                                                                                           11                                                                                   12




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




                                                                                                                NO DROP ANTI PANAS                                                                                 AVITEX GOLD
                                                                                                                   032-219-3937                                                                              032-219-3938
                                                                                                 Environmentally Preferred Paints & Surface Coatings                                      Environmentally Preferred Paints & Surface Coatings

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


                                                                                                              Validity: 23 December 2023 to 22 December 2025                                           Validity: 23 December 2023 to 22 December 2025




                                                                                                                             William Wong                                                                             William Wong
                                                                                                                      Assistant Executive Director                                                             Assistant Executive Director




                                                                                                                           13                                                                                     14




     18                   PT Avia Avian Tbk - 2023 Annual Report
Page 21
                                                                            Painting a Beautiful Picture of Indonesia
                                                                                             Performance Highlights



                     Product                         Organizer                              Validity Period

Avitex 4 Kids                               Singapore Environment Council                 Until February 26, 2024
Everglo Kids Care                           Singapore Environment Council                 Until February 26, 2024
Supersilk Anti-Noda                         Singapore Environment Council                   Until May 29, 2024
Lenkote Home Deco Metallic Paint Gold       Singapore Environment Council                   Until July 24, 2024
Sunguard All-In-One                         Singapore Environment Council                  Until August 7, 2024
Avitex Anti Viruz Interior Paint            Singapore Environment Council                  Until August 19, 2024
Home Deco Glow In The Dark Interior Paint   Singapore Environment Council                  Until August 19, 2024
Home Deco Magnetic Interior Paint           Singapore Environment Council                  Until August 19, 2024
No Odor Medicare                            Singapore Environment Council                Until September 5, 2024
Home Deco Glitz                             Singapore Environment Council                Until September 9, 2024
Wood Eco Woodstain Water-Based              Singapore Environment Council                 Until November 9, 2024
Avitex Eksterior                            Singapore Environment Council                 Until November 9, 2024
Boyo Special Politur Vernis Water-Based     Singapore Environment Council                 Until November 9, 2024
No Lumut Water-Based                        Singapore Environment Council                 Until November 9, 2024
Avitex One Coat                             Singapore Environment Council                Until December 21, 2024
Avitex Alkali Resisting Primer              Singapore Environment Council                 Until January 18, 2025
Avitex Wizz                                 Singapore Environment Council                  Until March 22, 2025
Brilliant Exterior                          Singapore Environment Council                   Until June 13, 2025
No Drop Basic                               Singapore Environment Council                   Until June 13, 2025
Brilliant Cat Tembok Interior               Singapore Environment Council                   Until July 18, 2025
Sunguard                                    Singapore Environment Council                Until November 24, 2025
Everglo                                     Singapore Environment Council                Until November 24, 2025
Supersilk                                   Singapore Environment Council                Until November 24, 2025
Avitex Dapur & Kamar Mandi                  Singapore Environment Council                Until November 24, 2025
Aquamatt                                    Singapore Environment Council                Until November 24, 2025
Lenkote Alkali Resisting Primer             Singapore Environment Council                Until November 24, 2025
No Odor                                     Singapore Environment Council                Until November 24, 2025
No Drop Anti Panas                          Singapore Environment Council                Until December 22, 2025
Avitex Gold                                 Singapore Environment Council                Until December 22, 2025



Domestic Component Level




                                     1                   2                           3




                                                         2023 Annual Report - PT Avia Avian Tbk                    19
Page 22
      4                      5                6    7




      8                      9                10   11




     12                      13               14   15




     16                      17               18   19




     20                      21               22   23




20   PT Avia Avian Tbk - 2023 Annual Report
Page 23
                                                                                  Painting a Beautiful Picture of Indonesia
                                                                                                        Performance Highlights



                   Product                                 Organizer                                     Validity Period

 Aries Gold                              Ministry of Industry of the Republic of Indonesia           Until September 15, 2026
 Avian Aluminium                         Ministry of Industry of the Republic of Indonesia           Until September 15, 2026
 Avian Cat kayu dan Besi                 Ministry of Industry of the Republic of Indonesia           Until September 15, 2026
 Avian Zinc Chromate                     Ministry of Industry of the Republic of Indonesia           Until September 15, 2026
 Avitex Alkali Resisting Primer          Ministry of Industry of the Republic of Indonesia           Until September 15, 2026
 Avitex Anti Viruz                       Ministry of Industry of the Republic of Indonesia           Until September 15, 2026
 Avitex Cat Genteng                      Ministry of Industry of the Republic of Indonesia           Until September 15, 2026
 Avitex Exterior                         Ministry of Industry of the Republic of Indonesia           Until September 15, 2026
 Avitex Plamir Tembok                    Ministry of Industry of the Republic of Indonesia           Until September 15, 2026
 Avitex                                  Ministry of Industry of the Republic of Indonesia           Until September 15, 2026
 Boyo Politur Vernis Solvent-Based       Ministry of Industry of the Republic of Indonesia           Until September 15, 2026
 Lenkote Wall Sealer                     Ministry of Industry of the Republic of Indonesia           Until September 15, 2026
 No Drop Anti Panas                      Ministry of Industry of the Republic of Indonesia           Until September 15, 2026
 No Drop                                 Ministry of Industry of the Republic of Indonesia           Until September 15, 2026
 No Odor Medicare                        Ministry of Industry of the Republic of Indonesia           Until September 15, 2026
 Supersilk Anti Noda                     Ministry of Industry of the Republic of Indonesia           Until September 15, 2026
 Suzuka Cat Duco Otomotif                Ministry of Industry of the Republic of Indonesia           Until September 15, 2026
 Avian Paving Paint                      Ministry of Industry of the Republic of Indonesia            Until October 19, 2026
 Avian Roadline Paint                    Ministry of Industry of the Republic of Indonesia            Until October 19, 2026
 Avitex Gold                             Ministry of Industry of the Republic of Indonesia            Until October 19, 2026
 Sunguard All-In-One                     Ministry of Industry of the Republic of Indonesia            Until October 19, 2026
 Sunguard                                Ministry of Industry of the Republic of Indonesia            Until October 19, 2026
 Supersilk                               Ministry of Industry of the Republic of Indonesia            Until October 19, 2026


By obtaining certifications for the Indonesian National Standard (Standar Nasional Indonesia or “SNI”), Singapore Green
Label (“GLS”), and Domestic Component Level (Tingkat Komponen Dalam Negeri or “TKDN”), we demonstrate our ongoing
commitment to improving product quality by delivering products that are safe for both the consumers and the environment.
In obtaining these certifications, we have passed a series of auditing processes, including the use of renewable raw materials,
standardized production processes, and product safety related to hazardous substances such as lead and chromium. To date,
7 products have obtained the SNI certification, while 29 products have received the GLS certifications, and 23 products have
received the TKDN certifications, as listed in the table above.


Other Certifications




          Name of Certification                            Organizer                                     Validity Period

                                        Green Industry Certification Institute of the Center
 Green Industry Certificate               for Standardization and Services of Chemical,
                                                                                               September 8, 2022 – September 7, 2026
 (Sertifikat Industri Hijau)            Pharmaceutical, and Packaging Industry, Ministry
                                             of Industry of the Republic of Indonesia




                                                                2023 Annual Report - PT Avia Avian Tbk                     21
Page 24
Management
Report




 22   PT Avia Avian Tbk - 2023 Annual Report
Page 25
2023 Annual Report - PT Avia Avian Tbk   23
Page 26
The Board of Commissioners
Report




                                                                 Hermanto Tanoko
                                                                President Commissioner




Dear Valued Shareholders and Stakeholders,

Praise and gratitude to God Almighty, for the performance shown by PT Avia Avian Tbk
throughout 2023 in achieving positive accomplishments. Throughout the year, we continued
to oversee and support the strategic measures as well as appreciate the dedication exhibited
by the Board of Directors of the Company, collectively building strong foundation for the
Company’s success in presenting sustainable colors.




    24        PT Avia Avian Tbk - 2023 Annual Report
Page 27
                                                                              Painting a Beautiful Picture of Indonesia
                                                                                                      Management Report



We realize that 2023 was not merely a passage of time, but also a period filled with meaningful dynamics and growth
momentum for the Company. We are grateful for the wise leadership and collective hard work of all the Company’s personnel,
which enabled us to successfully navigate emerging challenges, thus solidifying the Company’s position to stay ahead in this
competitive market.



Economic Conditions in 2023

In facing the economic and paint industry dynamics in 2023, we continuously monitored the macroeconomic conditions that
influenced the Company’s operations. On a global level, geopolitical tensions and the prolonged impact of the pandemic were
elements of our constant concern. While at the national level, Indonesia’s economic development was the main focus. We closely
monitored economic growth projections, currency stability, and government fiscal and monetary policies. We integrated these
conditions into our evaluation of the Company’s performance and strategies to be adopted in order to optimize opportunities
and mitigate potential risks.

We were also well aware of the significant dynamics in the national paint industry sector. Increased consumer demand, shifting
sustainability trends, and innovations in product formulations were factors that we identified as the drivers of change in this
industry. We believe that keeping an eye on the future will allow the Company to remain relevant and competitive in this
constantly evolving market.



Supervision on Formulation and Implementation of Strategies

From our perspective, close collaboration with the Board of Directors in understanding and responding accurately to changes
in the business landscape, is critical to maintaining the Company’s sustainability and growth. We recognize that sound and
informed strategies will be the primary foundation for the Company’s long-term success. Therefore, we actively ensure
that the strategies proposed by the Board of Directors conform with the Company’s objectives and values. In performing
our supervisory processes, we conduct comprehensive evaluations of critical aspects, including risk management. We
ensure that every strategic decision is supported by in-depth analysis, and that identified risks are managed with effective
countermeasures. In addition, we also ensure that implementation of strategies not only considers operational and financial
sustainability, but also other sustainability aspects such as social and environmental responsibility.

We appreciate the efforts that have been realized by the Board of Directors throughout 2023 in strengthening the Company’s
business resilience. The strategic measures taken, such as sustainable research and development, efficiency of the manufacturing
process, and expansion of the distribution network, were in line with our view to maintain the Company’s sustainability and
long-term growth. With this synergy between the Board of Commissioners and the Board of Directors, we are confident that the
Company can continue to adapt to market dynamics and provide added value to all stakeholders.



Frequency and Method of Provision of Advice to the Board of Directors of the Company

The synergy between the Board of Commissioners and the Board of Directors is manifested through maintaining
a conducive relationship with the Board of Directors, regular communication, and provision of constructive advice to
support the achievement of the Company’s goals and sustainability. Meetings between the Board of Commissioners and
the Board of Directors are conducted through periodic joint sessions and special meetings, if situations require in-depth
evaluation or urgent strategic decisions. When necessary, the joint meetings may invite governance organs under the
Board of Commissioners or the Board of Directors for more detailed and comprehensive discussions.

In addition to formal meetings, informal communication also serves as an effective means of providing advice. We consistently
maintain open communication channels, ensuring that each member of the Board of Commissioners can express their
views and suggestions to the Board of Directors. We leverage the collective knowledge and experience of the Board of
Commissioners to provide insightful perspectives on the strategic issues faced by the Company. Therefore, we are committed to
continuing our active role in providing advice that supports the sustainable growth of the Company.




                                                              2023 Annual Report - PT Avia Avian Tbk                25
Page 28
Assessment of the Performance of the Board of Directors

We appreciate the performance demonstrated by the Board of Directors in navigating challenges and optimizing momentum
to achieve the predetermined performance targets. Throughout 2023, we evaluate that the Board of Directors has displayed
strong leadership in implementing strategic policies to manage various aspects of the Company’s operations. We observe
that the success of the Board of Directors in maintaining operational and financial stability, improving production efficiency,
and responding to market dynamics shows alignment with the Company’s long-term vision.

Innovative steps in product research and development, portfolio adjustments in response to market demands, and expansion
of distribution networks, have all contributed to solid achievement in operational and financial performance. Customer services
were also continuously optimized through express delivery services, reflecting the Company’s determination in providing
added value to customers by catering to their needs for faster and more efficient services. These measures were in line with the
Company’s commitment to always provide the best services to customers, improve customer satisfaction, and strengthen the
Company’s position in the market.



Outlook on Business Prospects

Upon observing the continuously evolving economic and industry conditions, as well as the strategic measures taken by the
Board of Directors, we are optimistic about the Company’s journey ahead. This optimism is supported by the market potential
in the paint industry that remains wide open, especially considering Indonesia’s large population, projected increase in Gross
Domestic Product (“GDP”) per capita, and relatively low paint consumption rate. This creates opportunities for the Company to
continue to grow and expand its market share.

Therefore, we encourage the Board of Directors to continue strengthening our solid competitive advantages, supported
by innovation in product research and development, adaptation to changing market trends, and expansion of distribution
networks. These measures, coupled with improved customer service, provide a strong foundation for the Company to increase
market share penetration. In line with that, we fully support the Company’s expansion measure to build a new manufacturing
facility as a strategy to expand production capacity and respond to the continuously growing demand. We believe this
initiative will further strengthen the Company’s position in the industry, and open up new opportunities to face the evolving
market challenges and dynamics. We will continue to support and provide strategic advice to the Board of Directors, to
ensure the Company remains at the forefront of the competition in the national paint industry.



Views on the Implementation of Good Corporate Governance

We perceive the implementation of corporate governance as a crucial aspect in maintaining integrity, transparency and
sustainability of the Company’s business. We assess that the Board of Directors has been actively involved in improving the
quality of the governance implementation, conducting regular evaluations of internal policies, improving internal control
systems, and risk management in line with the current industry needs and developments. Improvement in the supervisory
function of the Board of Commissioners is also a positive step in optimizing the governance pillars consistently and
comprehensively. The fulfillment of these responsibilities is supported by the presence of supporting organs, namely the
Audit Committee, the Nomination and Remuneration Committee, and the Good Corporate Governance (“GCG”) Committee.

In addition, we appreciate the initiatives of the Board of Directors to integrate information technology, particularly in optimizing
functions that support the Company’s operational effectiveness. We view this initiative not only as a means to facilitate the
monitoring and evaluation of the Company’s information in real-time, but also as a reflection of the Company’s commitment to
innovation and operational efficiency. We will continue to provide support to maintain and improve this quality, allowing the
Board of Directors to further improve the quality of the Company’s management in achieving the goal of sustainable growth.




       26           PT Avia Avian Tbk - 2023 Annual Report
Page 29
                                                                                Painting a Beautiful Picture of Indonesia
                                                                                                         Management Report



Views on the Implementation of Social and Environmental Responsibility

We appreciate the Company’s continued commitment to improving the quality of its social and environmental responsibility
implementation. We observe that the Company is not only focused on internal sustainability, but also considers the
external impacts. From the social aspect, we fully support the Company’s efforts in creating an inclusive and fair working
environment, where every employee can continuously progress. In addition, the Company has actively engaged in
various social programs, including initiatives to improve the quality of education and the welfare of surrounding
communities. We view that these initiatives can have broader positive impacts beyond the Company’s operational areas
and support sustainable development.

With regard to the environment, we appreciate the Company’s continued commitment to this aspect. The Company does not
stop at fulfilling environmental standards and certifications, but also goes further to constantly develop sustainable initiatives,
in an effort to bring positive impacts to the surrounding environment and to ensure ecological sustainability. The Company has
consistently realized product development and operations that support sustainability principles, and take into consideration
its environmental impacts. All of these initiatives reflect the Company’s responsibility to provide sustainable solutions in
every aspect of its business operations.



Changes in the Composition of the Board of Commissioners

In 2023, there was no change to the composition of the Company’s Board of Commissioners. The current Board of Commissioners
is in office from 2021 until the 2026 Annual General Meeting of Shareholders, with details as follows:

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



Conclusion

To conclude, we express our gratitude to the Shareholders and other stakeholders for their trust and support, enabling the
Company to record a positive performance. On that note, we would also like to express our appreciation to the Board of
Directors and all of the Company’s personnel for their hard work and dedication. We are confident that the strong foundation
established by the Company, both in terms of operational and financial performance as well as social and environmental
responsibility, will serve as a solid basis for long-term success.

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




                                                     Hermanto Tanoko
                                                    President Commissioner




                                                                2023 Annual Report - PT Avia Avian Tbk                 27
Page 30
The Board of Directors Report




                                                                        Wijono Tanoko
                                                                        President Director




Dear Valued Shareholders and Stakeholders,

All praise and gratitude to God Almighty for His countless blessings, turning the year 2023
into a meaningful journey for the Company to move forward with full responsibility. Our
accomplishments are not only reflected in operational and financial stability, but also in
the nurturing of ethical solid business values. The Company has actively engaged itself to
continuously innovate, contribute, and lead as a pioneer in manufacturing high-quality paint
products, that not only deliver beautiful colors, but are also environmentally friendly. We believe
that every accomplishment must bring added value to the Company and all the stakeholders.




     28        PT Avia Avian Tbk - 2023 Annual Report
Page 31
                                                                             Painting a Beautiful Picture of Indonesia
                                                                                                     Management Report



Our journey in achieving these accomplishments is summarized as follows:



Economic and Industrial Conditions in 2023

The global economic landscape in 2023 saw limited growth, in line with the dynamics and challenges that are still surfacing
due to geopolitical tensions in various regions and the prolonged impact of the Covid-19 pandemic. Nevertheless, we are
grateful that our national economy continued to demonstrate resilience, supported by strong domestic demand. We observe
that the controlled inflation rate in 2023 has been able to maintain the stability of people’s purchasing power. In addition,
prudent monetary policy and sound economic management have contributed to creating a conducive economic environment
for numerous sectors.

Regarding the national paint industry, we observe that in 2023, the industry faced challenges and opportunities that must
be elaborated. Shifting consumer demands with an intensifying trend towards sustainability are key factors influencing the
direction of the industry. The public is increasingly concerned about environmental impacts, driving the need for innovation
in environmentally friendly products and the implementation of sustainable manufacturing practices.



Challenges and Strategies in Business Growth

In facing the challenges of a dynamically moving economy and industry, we constantly endeavor to maintain our
commitment to remain the pioneer in the national paint industry. Our confidence in facing these challenges is fueled by
our innovative approach, which allows us to not only respond to any change in the business landscape, but also optimize
emerging opportunities. We realize that market trends will always be dynamic. Therefore, we continuously strive to be
at the forefront of industry developments. By focusing on innovation, we seek to continuously address challenges while
creating new trends.

Moreover, we also strengthen our business resilience through strategic investments in research and development. Not
only does this approach yield innovative products, but it also sets the foundation for long-term growth. Our research and
development also involve analyzing market trends, so that we can manufacture products that cater to our customers’ needs.
Business resilience also lies in improved production efficiency. We improve our manufacturing processes through the adoption
of technology and the finest manufacturing practices that provide excellence in the quality and timeliness of our products. In
addition, the expansion of our distribution network is also a key focus in our growth strategy. Through strategic partnerships
and expanded distribution reach, we ensure that the Company’s products can access a broader market, thereby strengthening
our position in the domestic market. We believe that by focusing on innovation, sustainability, and excellence in quality, the
Company can continuously build solid and sustainable business fundamentals.



Roles of the Board of Directors in the Formulation and Implementation of Strategies

In our pivotal role as the Board of Directors, we recognize that the formulation and implementation of strategies are the
primary foundations for the success of the Company. We are responsible for designing the direction of strategic policies
that not only respond to market challenges and dynamics, but also lay the ground for sustainable growth. Furthermore, in
the process of formulating strategies, we ensure that business sustainability is the main focus. We integrate sustainability
principles into our strategic decisions to build the foundation for the Company’s growth and provide added value
to our stakeholders.

As risk managers and decision-makers, we actively ensure that the formulated strategies serve as robust guidelines for
achieving long-term success and sustainability. This is supported by optimizing the Enterprise Resource Planning (“ERP”)
system which allows us to obtain the Company’s data in real-time, facilitating quick decision-making, and providing an
in-depth look at the Company’s operational and financial performance. We also maintain active communication with
the Board of Commissioners through regular joint meetings to discuss and report on the implementation of strategies,
so that we remain adaptive to the challenges and optimize the momentum.




                                                             2023 Annual Report - PT Avia Avian Tbk               29
Page 32
Achievements and Business Target
The accurate implementation of the strategies to maintain excellence and optimize opportunities has positively impacted
of the Company’s performance and business targets in 2023. From the operational side, the production achievement
reached 180,540 metric tons or 99.61% of the target, an increase of 5.59% compared to 170,986 metric tons in 2022. This
increase was mainly driven by the growth in demand and the launch of new products which increased inventory levels. The
Sidoarjo plant served as our main manufacturing source, accounting for 72.19% of our total production. The remaining
27.81% was manufactured at the Serang Plant.

As for the financial side, net revenue in 2023 reached IDR7,016.88 billion or 98.89% of the target, an increase of 4.82% compared
to IDR6,694.17 billion in 2022. This growth was fueled by the positive performance of the architectural solutions and trading
goods segments, which recorded growth of 4.35% and 6.78%, respectively. Meanwhile, despite the growth in production and
sales, we were able to control the cost of goods sold, thanks to the decline in prices of raw materials. In 2023, the cost of goods
sold was recorded at IDR3,833.55 billion, a decrease of 3.60% compared to IDR3,833.55 billion in 2022. This achievement
boosted our profit for the year which was recorded at IDR1,643.10 billion or 102.03% of the target, an increase of 17.33%
compared to IDR1,400.37 billion in 2022.

Through consistent achievement performance, the Company succeeded in accomplishing the business targets that had been
predetermined. This success was reflected not only in solid financial figures, but also in the growing reputation and trust of customers,
business partners, and other stakeholders. This is reinforced by various awards and positive recognitions achieved by the Company
throughout 2023, such as the Indonesia Architectural Paints and Coatings Market Leadership Award from Frost & Sullivan,
Overall Winner award in the Katadata Corporate Sustainability Awards (KCSA) 2023 for the Chemicals Sector category from
Katadata, a Green Industry Pioneer in Accelerating Sustainable Development in East Java from the Governor of East Java, Going
Green is Good for Your Business from Xurya Daya Indonesia, as well as the Zero Accident Award from the Governor of East Java.


Business Prospects
Going into 2024, we are optimistic that the Company can continue this positive trend by optimizing its competitive advantages
to seize the momentum and market opportunities that are still wide open. This optimism is supported by Indonesia’s large
population, thus creating a huge potential market share. In addition, the relatively low level of paint consumption when
compared to the peers is a promising positive factor. Likewise, the projected increase in Gross Domestic Product (“GDP”)
per capita in the previous year indicates an economic boost signaling the growth in people’s purchasing power.

Awareness of the potential for growth in the paint market strategically positions the Company to increase market
penetration. Therefore, we constantly endeavor to explore product innovations, implement clever marketing strategies, and
improve the quality of services to customers. However, in the global economic scenario that is still projected to continue
its slowdown trend, the Company remains vigilant to potential risks that may affect the achievement of business targets in
2024. We will continue to strive to maintain flexibility, focus on innovation, and respond appropriately to market changes.
Discipline in risk management and operational resilience will also be keys to facing any challenges that may arise.


Implementation of Good Corporate Governance
In striving for healthy business viability, consistency and continuous improvement in the quality of corporate governance
implementation serve as essential foundations. We view that a successful organization is not only measured by its financial
performance, but also by how the pillars of governance are implemented and maintained. Our commitment to implementing
good corporate governance encompasses various aspects, ranging from information transparency and accountability
to compliance with applicable regulations and norms. This is supported by obtaining ISO/IEC 27001:2013 certification
in Information Security Management System, marking an integral step for the Company in securing and managing
information efficiently. We recognize that the quality of corporate governance implementation reflects the Company’s
integrity and responsibility to all stakeholders.

We have implemented concrete steps in improving the quality of governance implementation by conducting regular
evaluations of internal policy updates and improving internal control and risk management systems, in line with best
practices in similar industries. We focus on the importance of evaluating and updating internal policies in order to provide
a framework that is adaptive and responsive to developments in the business landscape. Meanwhile, improvements
in our internal control and risk management systems illustrate our dedication to effectively identifying, evaluating and
addressing potential risks. We also continue to strengthen the functions and roles of each governance organ, in supporting
both supervisory and management functions. This is undertaken as part of our commitment to ensure that our corporate
governance structure not only complies with industry regulations and standards, but also contributes positively to
overall operational efficiency and risk mitigation.




       30            PT Avia Avian Tbk - 2023 Annual Report
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                                                                             Painting a Beautiful Picture of Indonesia
                                                                                                        Management Report



Implementation of Social and Environmental Responsibility
Apart from focusing on corporate governance, we also take our social and environmental responsibility seriously as an integral
aspect of running the Company’s business. Awareness of the business’s impact on society and the environment is the primary
driver in determining the policies and measures taken by the Company. We have adopted various initiatives to minimize social
and environmental impacts through the formulation of sustainability strategies that serve as guidelines for implementing
sustainable business practices.

In the social aspect, we place particular emphasis on protecting the rights of our employees. We adopt employment practices
that are based on equality and anti-discrimination. This commitment includes policies that ensure fairness in the recruitment
process, career development, and recognition of diversity in the workplace to create an inclusive work environment, where
every employee is valued regardless of background, gender, or other differences. We have also developed programs that
positively impact on the surrounding community, particularly in the development and welfare of communities around the
Company’s operational areas.

In the environmental aspect, we are committed to developing products with Product Stewardship principles. This includes
an accountable product lifecycle, from design, production, usage, to the end of the product’s lifespan. This aims to minimize
environmental impact and ensure that the Company’s products comply with sustainability standards, such as the Singapore
Green Label. This sustainability standard ensures that the Company’s products prioritize using renewable raw materials,
standardized manufacturing processes, and product safety related to hazardous substances.


Changes in the Composition of the Board of Directors
In 2023, there was no change to the composition of the Company’s Board of Directors. The current Board of Directors is in
office until the 2026 Annual General Meeting of Shareholders are as follows:

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



Conclusion
In concluding this report, we would like to express our appreciation and gratitude to the Shareholders, the Board of
Commissioners, employees, business partners, customers, and other stakeholders, who have supported the Company’s journey
throughout 2023. As we look forward to the coming years, the spirit of collaboration and dedication of all of the Company’s
personnel will be the driving force for the Company to maximize its business potential and bring beautiful and sustainable
colors to the people of Indonesia.

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




                                                     Wijono Tanoko
                                                     President Director




                                                              2023 Annual Report - PT Avia Avian Tbk              31
Page 34
Company
Profile




More than


56,800
Building Material Stores across Indonesia


More than
             2,300                          Product (SKU)

    5 Subsidiaries               2 Manufacturing Facilities

    118 Wholly-Owned Distribution Centers

    14 Wholly-Owned Mini Distribution Centers

    40 Independent Distribution Centers




    32      PT Avia Avian Tbk - 2023 Annual Report
Page 35
2023 Annual Report - PT Avia Avian Tbk   33
Page 36
Company
  Identity

                                               Company Name
                                               PT Avia Avian Tbk

                                               Business Sector
                                               Manufacture and trade of paints and printing inks, varnishes, lacquers,
                                               adhesives or glues, mortar or ready-mixed concrete.


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



Avian Brands                                   Latest Deed Amendment
                                               The latest amendment to the Company’s deed is Deed No. 4 dated
                                               April 13, 2023 drawn up before Dr. Susanti S.H., M.Kn., a Notary in
        Total Employees                        Surabaya City regarding Amendment to the Articles of Association
        (Including Employees of                of PT Avia Avian Tbk. This change has been notified to the Ministry of
        Subsidiaries and Outsourced            Law and Human Rights of the Republic of Indonesia based on the Letter
        Employees)                             of Acceptance of Notification of Changes to Articles of Association
         Male:                                 No. AHU-AH.01.03-0054560 dated April 14, 2023.
        6,814 Employees
         Female:                               Listing of Shares on the Stock Exchange
        1,740 Employees                        December 8, 2021 on the Indonesia Stock Exchange




      34           PT Avia Avian Tbk - 2023 Annual Report
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                                                                  Painting a Beautiful Picture of Indonesia
                                                                                              Company Profile




Authorized Capital                                              Headquarter
IDR2,000,000,000,000.-                                          Jl. Raya Surabaya – Sidoarjo KM. 19
                                                                Desa Wadungasih, Kec. Buduran, Sidoarjo, 61252
                                                                Jawa Timur, Indonesia
Issued and Paid-up Capital                                        (62-31) 8968000
IDR619,535,556,000.-                                              corsec@avianbrands.com
                                                                  investor.relations@avianbrands.com
                                                                  www.avianbrands.com
Stock Code
AVIA                                                            Branch Office
                                                                Avian Brands Building
Shareholding                                                    Jl. Ahmad Yani No. 317, Surabaya, 60234
                                                                Jawa Timur, Indonesia
as of December 2023
                                                                  (62-31) 99850500/99850600


                                                                Address of Manufacturing Facilities
                                                                Sidoarjo
                                                                Jl. Raya Surabaya – Sidoarjo KM. 19
                                                                Desa Wadungasih, Kec. Buduran, Sidoarjo, 61252
                                                                Jawa Timur, Indonesia
                                                                  (62-31) 8968000
                                                                Serang
                                                                Jl. Raya Serang KM. 60
                                                                Kawasan Pancatama 5 Kav. 50, Leuwilimus
                                                                Leuwi Limus, Cikande, Kabupaten Serang, 42186
  PT Tancorp Surya Sentosa           : 36.60%
                                                                Banten, Indonesia
  PT Wahana Lancar Rejeki            : 32.49%
  Archipelago Investment Pte Ltd     : 6.30%                      (62-254) 402655
  Robert Christian Tanoko            : 2.30%
  Rudi Tanoko                        : 1.68%
  Rony Tanoko                        : 1.68%
  Treasury Stock                     : 0.06%
  Public*                            : 18.89%

                                   * Each below 5%




                                                     2023 Annual Report - PT Avia Avian Tbk            35
Page 38
Milestones

1978 - 1996                                                      2000 - 2010

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

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


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


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




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                                                                                Painting a Beautiful Picture of Indonesia
                                                                                                                 Company Profile




2011 - 2018                                                             2019 - 2021

    2011                                                                      2019
    The Company expanded its product offerings into the                       • The Company developed and launched “Avitex One
    instant cement product category. The Company completed                      Coat” paint and was awarded the first patent for
    the construction of an instant cement plant located at the                  Avitex’s one coat paint technology, which requires only
    manufacturing facility in Sidoarjo and commenced the                        one coat of paint instead of the usual two coats;
    sales of instant cement products in the market under its                  • The Company successfully increased its distribution
    “Giant Mortar” brand.                                                       network to 90 distribution centers across Indonesia
                                                                                through a Subsidiary, PT Tirtakencana Tatawarna; and
                                                                              • The Company entered into a non-exclusive license
    2012                                                                        agreement with PT Walt Disney Indonesia for the use
                                                                                of certain Disney logos, characters, and trademarks for
    • The Company was awarded the certification of                              its wall paint products such as interior wall paint and
      ISO 14001:2005 on Environmental Management                                special effects wall paint products in Indonesia.
      System, as part of its efforts to improve environmental
      performance and to reduce waste; and
    • Through a Subsidiary, PT Tirtakencana Tatawarna, the
      Company continued to expand its distribution network
      to 55 distribution centers across Indonesia.                            2020
                                                                              • The Company built the Avian Innovation Center
                                                                                dedicated to research, development and innovation,
    2014                                                                        with an approximate area of 5,000 m2;
    The Company increased production capacity for wall                        • As a testament to its ongoing commitment to provide
    paints and waterproofings by 80,000 metric tons.                            quality health and safety standards that are in line with
                                                                                international standards, the Company implemented
                                                                                the ISO 45001:2018 on Occupational Health and Safety
                                                                                Management System Standard; and
    2016                                                                      • The Company continued the expansion of its distribution
    The Company continued to expand its distribution                            network in Indonesia to 95 distribution centers through
    network to 62 distribution centers across Indonesia                         a Subsidiary, PT Tirtakencana Tatawarna.
    through a Subsidiary, PT Tirtakencana Tatawarna.



    2017                                                                      2021
                                                                              • The Company established PT Bangun Bersama
    • The Company further increased its production capacity
                                                                                Solusindo as a joint venture entity, with 50%
      by 50,000 metric tons; and
                                                                                shareholding each by the Company and PT Cipta Mortar
    • GIC (Ventures) Pte Ltd became shareholder of 10.0%
                                                                                Utama, a wholly-owned subsidiary of the Saint-Gobain
      of the Company’s shares through its wholly-owned
                                                                                Group, who is a leading player in the manufacturing
      Subsidiary, Archipelago Pte Ltd. The proceeds from the
                                                                                of mortars for construction. The establishment of
      cash injection from GIC (Ventures) Pte Ltd were used to
                                                                                PT Bangun Bersama Solusindo was aimed at
      repay all of the Company’s outstanding bank loans.
                                                                                developing the Company’s business in entering the
                                                                                two-component cement-based waterproofing paint
                                                                                market in Indonesia;
    2018                                                                      • In October 2021, the Company acquired 67.00%
                                                                                shareholding in PT Multipro Paint Indonesia, who is
    • The Company acquired a land located in Cirebon, West
                                                                                engaged in the manufacture of protective paint and
      Java, Indonesia, with a total land area of 110,211m2,
                                                                                marine paint;
      from its affiliate PT Bira Industri Rejeki Agung, which is
                                                                              • The Company listed its shares on the Indonesia Stock
      reserved as the future site of the third manufacturing
                                                                                Exchange on December 8, 2021 with the stock code
      facility;
                                                                                AVIA; and
    • The Company further expanded its distribution
                                                                              • The Company continued its expansion plan by
      network to 78 distribution centers across Indonesia
                                                                                increasing the number of wholly-owned distribution
      through a Subsidiary, PT Tirtakencana Tatawarna; and
                                                                                centers to 101 through a Subsidiary, PT Tirtakencana
    • To commemorate its 40th year anniversary, the
                                                                                Tatawarna.
      Company moved into the newly constructed twenty-
      story headquarters in Surabaya. As a testament to
      its passion for innovation, the new headquarters is
      uniquely designed with curves and twists, where each
      floor rotates and twists by a total of 60 degrees from
      the ground floor to the top of the tower.




                                                                   2023 Annual Report - PT Avia Avian Tbk                  37
Page 40
2022 - 2023                                                         Brief History

   2022
   • The Company continued to expand its marketing reach
     by increasing the number of wholly-owned distribution
     centers to 109, and establishing 4 wholly-owned mini
     distribution centers through a Subsidiary, PT Tirtakencana
     Tatawarna;
   • The Company appointed a new member of the Board of
     Directors, Mrs. Angelica Tanisia Jozar, in order to increase
     the proportion of women in the top management and              The Company is an integrated paint
     realize its commitment to gender equality;                     company with a long-standing business
   • The Company was successfully awarded the certification
     of ISO 50001:2018 on Energy Management System for the          journey and history in Indonesia.
     manufacturing facilities in Serang and Sidoarjo; and
   • The Company launched new products, i.e. Woodcare
     Series, Avitex Anti Viruz, No Drop Anti Panas, Avitex Gold,
                                                                    It was established in 1978 by Mr. Soetikno
     VIP Pengupas Cat Tembok (Water-Based), and several
     other products to meet market needs.                           Tanoko, who is the father of the President
                                                                    Director of the Company, Mr. Wijono Tanoko, and
                                                                    the President Commissioner of the Company,
                                                                    Mr. Hermanto Tanoko as well as the grandfather
   2023                                                             of the Vice President Director of the Company,
   • The Company increased its total wholly-owned                   Mr. Ruslan Tanoko, and the Director of the Company,
     distribution centers to 118, and total wholly-owned            Mr. Robert Christian Tanoko. Its journey began
     mini-distribution centers to 14 through                        as an integrated paint manufacturing company
     PT Tirtakencana Tatawarna, the Company’s Subsidiary;           that combines the manufactures of raw materials
   • The Company commenced construction of a new
     manufacturing facility in Cirebon with a land area
                                                                    and paint packagings through investment in
     of 11 hectares and an annual production capacity               specialized machineries in one manufacturing
     of up to 225,000 tons, as a strategy to increase               facility located in Sidoarjo, East Java.
     the Company’s production capacity to respond to
     future market opportunities and potential;                     Over the past few years of its business journey, the
   • The Company successfully earned ISO/IEC 27001:2013
     certification on Information Security Management
                                                                    Company has successfully captured customers’
     System;                                                        attention with durable, high-quality products
   • The Company successfully received the Overall                  available in a wide range of attractive colors. This
     Winner award in the 2023 Katadata Corporate                    has established a positive image for the Company
     Sustainability Awards (KCSA) for the Chemicals                 among consumers, leading to an increased
     Sector category from Katadata, the Green Industry
     Pioneer in Accelerating Sustainable Development
                                                                    demand for its products. Subsequently, the
     in East Java award from the Governor of East Java,             Company took expansion measures to increase
     Going Green is Good for Your Business award from               production capacity by building a second
     Xurya Daya Indonesia, Prevention and Mitigation of             manufacturing facility in Serang, West Java in
     Covid-19 in the Workplace award from the Minister              1996. Not only that, the marketing and distribution
     of Manpower of the Republic of Indonesia, and Zero
     Accident Award from the Governor of East Java;
                                                                    reach were also continually expanded through the
   • The Company launched a range of new products,                  establishment of a Subsidiary in 2000, namely
     namely Admiral Thinner Serbaguna and Admiral Anti              PT Tirtakencana Tatawarna. This subsidiary focuses
     Fouling, Brilliant Cat Tembok Interior and Brilliant           on establishing distribution centers for the
     Cat Tembok Eksterior, Boyo Politur Melamine, Avian             Company’s products across Indonesia. Ten years
     Cling Zinc Chromate, Admiral Wood Filler Epoxy,
     Admiral Cat Kapal, Aries Bling, Avitex Wizz, No Drop
                                                                    later, the Company established another Subsidiary,
     Plus 3 in 1, No Drop Basic, Avian Glue Epoxy Hemat,            namely PT Tirtakencana Batamindo, as a distribution
     and Avian 3 in 1 Anti Karat; and                               company focusing on establishing distribution
   • The Company initiated a corporate action of shares             centers in Batam. Then, in 2018, the Company
     buyback of its shares that have been issued and listed         established PT Solusi Rumah Praktis with 99.99%
     on the Indonesia Stock Exchange in a maximum
     amount of 1,425,000,000 shares or approximately
                                                                    shareholding, followed by the investment in a
     2.3% of the total issued and paid-up capital.                  joint venture with PT Bangun Bersama Solusindo




  38           PT Avia Avian Tbk - 2023 Annual Report
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                                                                               Painting a Beautiful Picture of Indonesia
                                                                                                         Company Profile



and acquiring PT Multipro Paint Indonesia with a 67.00%
shareholding in 2021. Besides reinforcing internal networks,
the Company forged partnerships with independent third
parties to facilitate direct retail consumer sales, ensuring
smoother distribution processes as well as more timely
and efficient fulfillment of consumer demands.

Another significant achievement was marked when the
Company went public through initial public offering of
shares. This is a crucial milestone in the Company’s history,
providing an opportunity for further growth with increased
capital support. It enables the Company to realize its
commitment to research and development of its products,
positioning itself as a leader in environmentally friendly,
cutting-edge, and reliable paint innovations. Through
continuous research and development, the Company
consistently develops new products that align with current
trends and meet the highest quality standards. Several
products with strong brand recognition include Avian Cat
Kayu dan Besi, Avitex Cat Tembok Kebanggaan Orang Hebat,
and No Drop Cat Pelapis Anti Bocor. Many of these brands
have established a strong market position supported by the
trust and loyalty of consumers over the years.

Until now, the Company continues to grow and adapt
to market changes through a focus on innovation,
sustainability, environmental conservation, and positive
contributions to society. This has been recognized by
various external parties, as demonstrated by, among others,
earning the Singapore Green Labelling Scheme certification,
a labeling scheme that awards the Singapore Green Label
to products that meet standards related to Volatile Organic
Compound (“VOC”) content, heavy metal-free content,
and the use of bio-based or alternative raw materials. As of
December 31, 2023, the Company has been awarded the
Singapore Green Label for 29 products. All of the Company’s
products are processed with innovative technology in
order to preserve the environment. This is demonstrated by
the implementation of ISO 14001:2015 on Environmental                Winner award in the Katadata Corporate Sustainability
Management System and ISO 50001:2018 on Energy                       Awards (“KCSA”) 2023 for the Chemicals Sector category
Management System standards at the Serang and Sidoarjo               by Katadata. Additionally, the Company was honored with
plants. In line with this, social issues are also a concern          the “Green Industry Pioneer in Accelerating Sustainable
for the Company, as evidenced by the implementation                  Development in East Java” award from the Governor of
of the ISO 45001:2018 standard on Occupational Health                East Java, the “Going Green is Good for Your Business”
and Safety Management System to create a safe working                award from Xurya Daya Indonesia, and the Zero Accident
environment, ISO 9001:2015 on Quality Management                     Award from the Governor of East Java. These accolades
System to ensure the quality of products and services, and           serve as inspiration for the Company to continue making
ISO/IEC 27001:2013 on Information Security Management                positive contributions to stakeholders and to enhance
System to manage risks related to data security.                     the quality of business management with a continued
                                                                     focus on sustainability principles in the future.
Moreover, the Company’s strong commitment to formulating
policies and implementing business activities that consistently
prioritize sustainability principles has garnered appreciation
from stakeholders. In 2023, the Company received the Overall




                                                                  2023 Annual Report - PT Avia Avian Tbk        39
Page 42
Company Vision, Mission, and Values




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




                                                                            MISSION
                                                                              VISI
                                                                          “To provideperusahaan
                                                                            “Menjadi    added value   to
                                                                                                    cat
                                                                    stakeholders  through
                                                                      yang terintegrasi,    the development
                                                                                         ramah   lingkungan,
                                                                                of various
                                                                          terdepan         quality di
                                                                                      dan terpercaya
                                                                                      paints.” ”
                                                                                    Indonesia.




The Company’s Vision and Mission have been periodically reviewed by the Board of Commissioners and the Board of Directors. Based on
the review results for the year 2023, the Company’s Vision and Mission remain relevant to the purpose and objectives of the Company’s
establishment, and in line with developments in national paint industry.




       40            PT Avia Avian Tbk - 2023 Annual Report
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                                                               Painting a Beautiful Picture of Indonesia
                                                                                             Company Profile




COMPANY VALUES

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




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




      Teamwork
 T    Ability to be part of a group, work with the group members, and contribute to the achievement
      of the group’s goals.




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




                                               2023 Annual Report - PT Avia Avian Tbk                 41
Page 44
Meaning of Avian Logo




                                   3 Strands of Feathers
                      1            The lines depicting “3 Strands of Feathers” symbolize the 3 generations of the Company’s
                      2            management, namely the past, present, and future.
                      3
                                   The 3 Strands of Feathers unite to form the body of a duck with a figure symbolizing the Company
                                   that is managed professionally, transparently, and guided by Good Corporate Governance so that
                                   the Company may continue to grow in a positive manner and remain strong, while providing added
                                   value to stakeholders, Shareholders, and investors.




                                   Duck Figure
                                   The head of the duck represents gentleness, kindness, honesty, and humanity.

                                   The duck figure facing right, symbolizes the Company’s constant forward motion, strength,
                                   perseverance and ability to seize opportunities from any upcoming challenges to further its mission
                                   of sustainable corporate development.




                                   Logotype
                                   The logotype is divided into 2 hierarchical parts, namely:
                                   • The word “Avian” uses a bold Serif font that symbolizes the Company’s identity; and
                                   • The word “Brands” serves as a description as it includes various types of decorative paint products,
                                     wood and metal paints, waterproofing, adhesives, instant cement, and other supporting building
                                     materials. It also uses a more straightforward Sans Serif font.




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




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


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




       42             PT Avia Avian Tbk - 2023 Annual Report
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                                                                                  Painting a Beautiful Picture of Indonesia
                                                                                                                 Company Profile




Business Activities




Based on article 3 of the Company’s Articles of Association which was last ratified through the Deed of Restatement of Shareholders’
Resolutions on Amendment to the Company’s Articles of Association No. 3 dated August 4, 2021, drawn up before Liestiani
Wang, S.H., M.Kn., a Notary in South Jakarta, the purpose and objective of the Company is to engage in manufacturing industries
and wholesale trade. To achieve these aim and objectives, the Company may conduct the following business activities:



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



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



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



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




                   Ready-mixed and Dry-mixed Concrete and Mortar Industry
                   This group encompasses the manufacture of ready-mixed and dry-mixed concrete and mortar.




                                                                 2023 Annual Report - PT Avia Avian Tbk                  43
Page 46
Additionally, to support the main business activities, the Company may perform supporting business activities as follows:




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

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




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


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




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


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




            Wholesale Trade of Paints


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




BUSINESS ACTIVITIES CONDUCTED IN 2023

                    Business Activities based on Articles of Association                             Has/Has not been Conducted

 Main Business Activities

 Paint and Printing Ink Industry                                                                                     √

 Varnish Industry (Including Mastics)                                                                                √

 Lacquer Industry                                                                                                    √

 Adhesive/Glue Industry                                                                                              √

 Ready-mixed and Dry-mixed Concrete and Mortar Industry                                                              √

 Supporting Business Activities

 Industry of Organic Basic Chemical Industry for Raw Materials of Dyes and Pigments,
                                                                                                                     √
 Dyes and Pigments

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

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

 Wholesale Trade of Paints                                                                                           √




       44              PT Avia Avian Tbk - 2023 Annual Report
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                                                                                                                             Painting a Beautiful Picture of Indonesia
                                                                                                                                                                             Company Profile




Products and Services
The Company’s products are grouped into 2 main categories, i.e. architectural solutions and trading goods. More detailed
information is described as follows:


                                  Architectural Solutions
                                  The architectural solutions products are the main products produced by the Company,
                                  comprising wall paint, wood and metal paint, waterproofing paint, wood care, as well as other
                                  architectural solutions, including roof paint, instant cement, and automotive refinish paint. As of
                                  December 31, 2023, the Company has a diversified portfolio of approximately more than 2,300
                                  SKUs for architecture solution products that are marketed and distributed reaching 96 brands.
                                  Some of the Company’s major household brands include Avian, Avitex, and No Drop.



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




                                                                                                                                        Wood Care                           Glue




                                                                                       No Drop
                                                                                 No Drop Bitumen Black
                                                                                    No Drop Plaston
                                                                                    No Drop Mortar
                                                                                     No Drop Tape
                                                                                  No Drop Anti Panas                  Boyo Series
                                                       Admiral Cat Kapal           No Drop Plus 3 in 1               Wood Eco Series
                                                 Avian Cat Kayu dan Besi             No Drop Basic
                                             Avian Cling Zinc Chromate                                             Lem Putih VIP PVAc
                                        Glovin Cat Kayu dan Tembok                                                    Admiral Wood Filler Epoxy
                                      Yoko Cat Kayu dan Tembok                                                           Avian Non-Sag Epoxy Super                 Roof Paint
                                        Avian 3 in 1 Anti Karat                      Waterproofing                Wo
                                                                                                                             Avian Lem Epoxy Hemat
                                        Avian Cling Synthetic             tal                                                   Avian Lem Epoxy
                                                 Platinum               Me
                                                                        d                                         & od
                                                                                                                   Gl              Viplas
                                                                      an
                                                                                                                     Ca




                                                                                    tural Solu
                                                                                                                      ue




                                                                                tec
                                                               od




                                                                                                                       re




                                       Sunguard
                                                                                              tio                                           Absolute Roof

                                                                              hi
                                                             Wo




                                       Sunguard                                                                                             Coating
                                      All-In-One                                                                                            Avitex Cat             Instant Cement
                                                                        c




                                                                                                             ns




                                                                                                                                            Genteng & Seng
                                                                      Ar




                                       Supersilk
                                       Anti Noda                                                                                            Yoko Cat
                                       Supersilk                                                                                            Genteng & Seng
                                       Aquamatt                                                                                             Giant Mortar
                                                                                                                                            220
                                           Avitex
                                     Cat Tembok                                                                                             Giant Mortar
                                                                                                                                            270
                                Avitex Eksterior
                                                                                                                                            Giant Mortar
                               Avitex Anti Viruz                                                                                            380
                                                                                                                              er s




                                     Avitex Gold
                                                        Wal




                                                                                                                                            Giant Mortar
                               Aries Cat Tembok                                                                                             420
                                                                                                                            O th
                                                            l




                                      Aries Gold                                                                                            Giant Mortar
                                      Aries Bling                                                                                           L500
                                                                                       Trading                                              Suzuka Cat Duco        Autorefinish & Spray Paint
                                     Avitex Wizz
                                                                                                                                            Otomotif
                                   HomeDeco Glow In
                                               The Dark
                                                                                        G oods                                              Suzuka Spray
                                           HomeDeco Glitz                                                                          Admiral Thinner
                                                                                                                                   Serbaguna
                                                                                                             ng
                                           HomeDeco Metallic                  Pipe                       orti
                                                                                                    Supp ucts                 VIP Pengupas Cat Tembok
                                   Brilliant Cat Tembok Interior                  s     Furniture     Prod                 VIP Paint Remover
                                            Brilliant Cat Tembok
                                                        Eksterior
                                                                                                                                                                   Thinner
                                                                    nd
                                                                Bra




                                                                           Power
                                                                         Power Max                         Homecare
                                                                           Quad
                                                                                          Activ



                                                                                                                                                        Wall Paint Peeler
                                                 uct
                                                  d
                                              Pro




                                                                                          2023 Annual Report - PT Avia Avian Tbk                                                    45
Page 48
        Category                                                            Product Name

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




        46             PT Avia Avian Tbk - 2023 Annual Report
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                                                                          Painting a Beautiful Picture of Indonesia
                                                                                                         Company Profile



Product Development in 2023

As a market leader in the national paint industry, research and development remain the Company’s primary commitment to
consistently deliver high-quality products in line with consumer needs and market dynamics. The following are some of the
products successfully developed and introduced to the market throughout the year of 2023:



                    Admiral Thinner Serbaguna                                     Admiral Anti Fouling
                    • Anti-Fog                                                    • Anti-Algae and Anti-Barnacles Formula
                    • Quick Drying                                                • Maintains Maximum Boat Speed
                    • More Cost Effective                                         • Helps Save Fuel




                    Brilliant Cat Tembok Interior                                 Brilliant Cat Tembok Eksterior
                    • Conceals Wall Imperfections                                 • UV Protection
                    • Resistant to Brushing or Rubbing                            • Anti-Mold and Anti-Mildew
                    • Minimal Splatter                                            • Best Adhesion




                    Boyo Politur Melamin                                          Avian Cling Zinc Chromate
                    • Anti-Mold and Insects                                       • Prevents Rust
                    • Beautifies Wood Appearance                                  • Quick Drying
                    • Water Repellent                                             • Strong Adhesion




                    Admiral Wood Filler Epoxy                                     Admiral Cat Kapal
                    • Best Adhesion                                               • Seawater Resistant
                    • Flexible                                                    • Strong Adhesion
                    • Seals Cracks                                                • Quick Drying




                    Aries Bling                                                   Avitex Wizz
                    • Not Easily Discolors                                        • 2x thicker
                    • Quick Drying                                                • Up to 40% Dilution
                    • Cost Efficient                                              • 3-years Warranty




                    No Drop Plus 3 in 1                                           No Drop Basic
                    • Primer, Top Coat, and Waterproofing                         • 4-years Protection
                    • Waterproof                                                  • Waterproof
                    • 7+ Years Protection                                         • Elastic




                    Avian Lem Epoxy Hemat                                         Avian 3 in 1 Anti Karat
                    • Strong Adhesion                                             • Protects against Rust
                    • Quick Drying                                                • Practical
                    • No Pungent Odor                                             • Suitable for Exterior and Interior




                                                            2023 Annual Report - PT Avia Avian Tbk                 47
Page 50
Manufacturing Facilities
The Company owns 2 manufacturing facilities which are vertically integrated from upstream to downstream to manufacture
a diverse range of high-quality products ready to be delivered to our valued customers. The manufacturing facilities of the
Company are one of the largest plants in Indonesia that has implemented Enterprise Resource Planning (“ERP”) and Warehouse
Management System (“WMS”). The development of digital systems, such as Automatic Weighing System (“AWS”), Distributed
Control System (“DCS”), Computerized Monitoring Board (“CMB”), Yard Management System (“YMS”), and Computerized
Maintenance Management System (“CMMS”), is implemented in order to boost productivity, effectiveness, data accuracy,
and to support environmentally friendly programs by minimizing paper usage. The Company has also gradually utilized
renewable energy sources in the form of solar panels as an alternative power source. Additionally, transparent roofs have
been utilized in the facilities to reduce electricity usage.




The Company’s manufacturing facilities have implemented the standards of ISO 9001 on Quality Management System,
ISO 14001 on Environmental Management System, ISO 45001 on Occupational Health and Safety Management System,
ISO 50001 on Energy Management System, and ISO/IEC 27001:2013 on Information Security Management System. The
Company also has an Emergency Response Preparedness team that has been certified by the Ministry of Manpower of the
Republic of Indonesia, to ensure safety in emergency situations. Further details regarding the Company’s manufacturing
facilities are described as follows:

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




         48         PT Avia Avian Tbk - 2023 Annual Report
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                                                               Painting a Beautiful Picture of Indonesia
                                                                                       Company Profile




Operational Areas




                         PRODUCT DISTRIBUTION AREAS




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



     Sumatra:                 Sumatra:                      Sumatra:                       Sumatra:

       26                        5                            10                     10,894
       Java:                    Java:                         Java:                         Java:

        51                       0                            15                     31,435
    Kalimantan:             Kalimantan:                    Kalimantan:                Kalimantan:

        14                       2                             4                       5,215
     Sulawesi:                Sulawesi:                     Sulawesi:                      Sulawesi:

        13                       2                             6                       5,327
   Other Areas in          Other Areas in                 Other Areas in             Other Areas in
     Indonesia:              Indonesia:                     Indonesia:                 Indonesia:

        14                       5                             5                      4,006
       TOTAL:                  TOTAL:                        TOTAL:                         TOTAL:


       118                      14                            40                      56,877



                                                  2023 Annual Report - PT Avia Avian Tbk         49
Page 52
Organizational Structure

                                               General Meeting of Shareholders


                                                    The Board of Commissioners

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




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

                                                                                                        Chairman : Mohammad Noor
               Chairman : Robert Christian                              Chairman : Mohammad Noor
                                                                                                                   Rachman Soejoeti
                          Tanoko                                                   Rachman Soejoeti
                                                                                                        Member : Fitradewata
               Member : Kurnia Hadi Sinanto                             Member : Hermanto Tanoko
                                                                                                                   Teramihardja
               Member : Iwan Sigit                                      Member : Iwan Sigit
                                                                                                        Member : Sammy TS Lalamentik




                                                           President Director

                                                              Wijono Tanoko




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

    Angelica Tanisia Jozar           Robert Christian Tanoko                    Ruslan Tanoko             Kurnia Hadi Sinanto




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



      The Corporate                                                       Information Technology
        Secretary
                                                                              Hendrik Antonius
       Hera Septi Astuti



         The Audit
       Internal Unit

  Chairman : Bobby Septian
             Yahya
  Member : Sarwono
  Member : Devyka Oktima S




  50             PT Avia Avian Tbk - 2023 Annual Report
Page 53
                                                                                                                                      Painting a Beautiful Picture of Indonesia
                                                                                                                                                              Company Profile




Membership in Associations




In order to keep abreast of the latest issues or
topics, as well as to create the opportunities to       Indonesian Public Listed Companies Association
express various opinions regarding these issues or
                                                        • Scale                                                                                  : National
topics, the Company joins a number of associations
                                                        • Status of the Company                                                                  : Member
that are relevant to the field of business in which
it operates. In addition, association membership
is also useful in maintaining the Company’s
strategic partnerships with various stakeholders.
Associations where the Company has participated                                             PT AVIA AVIAN
                                                                                                        007/APCI/2022




in up until the end of 2023 are described as follows:



                                                        Indonesian Paint Producers Association
                                                        • Scale                                                                                  : National
                                                        • Status of the Company                                                                  : Member



                                                                                       SK Menkumham RI No. C-54.HT.01.03 Tahun 2006




                                                            Badan Pengurus ARSI menetapkan dan menganugerahkan


                                                            SERTIFIKAT KEANGGOTAAN
                                                                                   Kepada :

                                                                         PT. AVIA AVIAN
                                                               Sebagai Anggota Asosiasi Resin Sintetik Indonesia
                                                                         Nomor : 006.DES.ARSI.XII.17



                                                                          Jakarta, 19 Desember 2017

                                                                                Badan Pengurus
                                                                       Asosiasi Resin Sintetik Indonesia

                                                               Ketua Umum,                        Sekretaris Umum,




                                                                 Fahrurrozi                  Utun Sutrisna Sastrawijaya




                                                        Indonesian Synthetic Resin Association
                                                        • Scale                                                                                  : National
                                                        • Status of the Company                                                                  : Member




                                                        Net Zero of Indonesian Chamber of Commerce and
                                                        Industry*
                                                        • Scale                                                                                  : National
                                                        • Status of the Company                                                                  : Member
                                                        * The Company’s membership in the Net Zero of Indonesian Chamber of
                                                          Commerce and Industry association lasted until July 2023.




                                                        2023 Annual Report - PT Avia Avian Tbk                                                                       51
Page 54
Profile of the Board of Commissioners




From left to right:
1. Hermanto Tanoko (President Commissioner)
2. Mohammad Noor Rachman Soejoeti (Independent Commissioner)




       52             PT Avia Avian Tbk - 2023 Annual Report
Page 55
                                                                 Painting a Beautiful Picture of Indonesia
                                                                                               Company Profile




                                     Hermanto Tanoko
                                     President Commissioner

                                     Indonesian, 61 years old.



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


                                              Work Experiences
                                              Commissioner of PT Sariguna Primatirta (2001 - 2009).


                                              Dual Appointments
                                              • Commissioner of PT Tirtakencana Tatawarna (2000 - present);
                                              • President Commissioner of PT Jaya Sukses Makmur Sentosa Tbk
                                                (2003 - present);
                                              • President Commissioner of PT Sariguna Primatirta Tbk
Educational Background                          (2009 - present);
and Certifications                            • President Director of PT Tancorp Global Sentosa (2010 - present);
                                              • Commissioner of PT Tirtakencana Batamindo (2010 - present);
Master of Management from IBMT
                                              • President Commissioner of PT Avia Avian Industri Pipa
School of Management, 2001.
                                                (2014 - present);
                                              • President Director of PT Tancorp Surya Sentosa (2015 - present);
Affiliation                                   • Vice President Director of PT Solusi Rumah Praktis (2018 - present);
Is an affiliate of members of                 • President Commissioner of PT Caturkarda Depo Bangunan Tbk
the Board of Directors as well as               (2020 - present);
Main and Controlling Shareholders.            • President Commissioner of PT Multipro Paint Indonesia
                                                (2021 - present);
                                              • Member of the Nomination and Remuneration Committee of the
                                                Company (2021 - present); and
                                              • President Commissioner of PT Penta Valent Tbk (2022 - present).


                                              Education/Training in 2023
                                              PwC Sharing Session (Internal Audit Issue, Personal Data Protection,
                                              and Digital Financial Report).




                                                 2023 Annual Report - PT Avia Avian Tbk                53
Page 56
                                                             Mohammad Noor
                                                             Rachman Soejoeti
                                                             Independent Commissioner
                                                             Indonesian, 66 years old.


                                                                        Term of Office and Basis of Appointment
                                                                        2021 – 2026:
                                                                        The Deed of Restatement of Shareholders’ Resolutions in Lieu of
                                                                        the Extraordinary General Meeting of Shareholders No. 19 dated
                                                                        June 22, 2021, drawn up before Anwar, S.H., M.Kn., a Notary in
                                                                        Gresik Regency.
                                                                        Work Experiences
                                                                        • Member of the Supervisory Board of the Republic of Indonesia
                                                                          Money Printing Corporation (2000 - 2007);
                                                                        • Deputy Commissioner for Capital Market Supervision II of the
                                                                          Financial Services Authority (2013 - 2017);
                                                                        • President Commissioner of PT Maybank Asset Management
                                                                          (2017 - 2020); and
                                                                        • President Commissioner of PT Ristia Bintang Mahkota Sejati Tbk
                                                                          (2018 - 2020).
                                                                        Dual Appointments
           Educational Background                                       • Commissioner of PT Bursa Efek Indonesia (2018 - present);
           and Certifications                                           • Chairman of the Audit Committee of PT Bursa Efek Indonesia
           • Bachelor of Economics from Gadjah                            (2018 - present);
             Mada University, Yogyakarta,                               • Chairman of the Audit Committee of the Company (2021 - present);
             1982; and                                                  • Chairman of the Nomination and Remuneration Committee of the
           • Master of Arts in Economics from                             Company (2021 - present); and
             Colorado State University, 1991.                           • Independent Commissioner of PT Nusantara Sejahtera Raya Tbk
                                                                          (2023 – present).
           Affiliation                                                  Education/Training in 2023
           Is not an affiliate of other members                         • Market Technical Analysis by the Indonesian Capital Market
           of the Board of Commissioners,                                 Professional Association (Perkumpulan Profesi Pasar Modal
           members of the Board of Directors,                             Indonesia or “PROPAMI”);
           as well as Main and Controlling                              • Behavior Finance by PROPAMI;
           Shareholders, either directly or                             • Crypto Asset – Same Activities, Same Risks, Same Regulators by the
           indirectly, up to the Individual                               International Organization of Securities Commissions (“IOSCO”);
           Owner.                                                       • Building Healthy and Efficient Sustainable Finance Market by IOSCO;
                                                                        • Enhancing Market Supervision and Integrity – The Use of SupTech
                                                                          by IOSCO;
                                                                        • Green Issues in Mergers and Acquisitions by the Indonesian Finance
                                                                          Association (“IFA”);
                                                                        • Household Sustainability by IFA; and
                                                                        • Tax Regulations Update by Indonesia Stock Exchange (Bursa Efek
                                                                          Indonesia).

Statement on Independence of Independent Commissioners
The currently appointed Independent Commissioner is serving his first term, and therefore, the Company does not provide information regarding the statement
on independence of Independent Commissioner having served for more than two terms.

Change in the Composition of Members of the Board of Commissioners and Reason for the Change
In 2023, there was no change in the composition of the Company’s Board of Commissioners. The composition of the Board of Commissioners of the Company
is in compliance with the provisions of Financial Services Authority Regulation No. 33/POJK.04/2014 concerning the Board of Directors and the Board of
Commissioners of Issuers or Public Companies.




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                                                                                                  Company Profile




Profile of the Board of Directors




From left to right:
1. Wijono Tanoko (President Director) 3. Ruslan Tanoko (Vice President Director) 5. Angelica Tanisia Jozar (Director)
2. Robert Christian Tanoko (Director) 4. Kurnia Hadi Sinanto (Director)




                                                         2023 Annual Report - PT Avia Avian Tbk           55
Page 58
                                      Wijono Tanoko
                                      President Director

                                      Indonesian, 71 years old.



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


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


                                               Dual Appointments
                                               • President Director of PT Avia Avian Industri Pipa (2014 - present);
                                               • President Commissioner of PT Tirtakencana Tatawarna
                                                 (2014 - present);
Educational Background                         • Director of PT Wahana Lancar Rejeki (2015 - present);
and Certifications                             • President Commissioner of PT Tirtakencana Batamindo
Graduated from Kolese Santo Yusuf                (2016 - present);
High School, Malang, 1972.                     • Commissioner of PT Solusi Rumah Praktis (2018 - present); and
                                               • President Director of PT Multipro Paint Indonesia (2021 - present).
Affiliation
Is an affiliate of a members of the            Education/Training in 2023
Board of Commissioners, other                  • Economic Outlook 2023 by PT Bank Central Asia Tbk;
members of the Board of Directors,             • Mid Year Outlook 2023 by Union Bank of Switzerland AG;
as well as Main and Controlling                • GIC Insight 2023 by GIC; and
Shareholders.                                  • Forbes CEO, Sea Change by Forbes.




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                                                                                               Company Profile




                                       Ruslan Tanoko
                                       Vice President Director

                                       Indonesian, 48 years old.



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


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


                                                Dual Appointments
                                                • President Director of PT Tirtakencana Tatawarna (2014 - present);
Educational Background                          • President Director of PT Wahana Lancar Rejeki (2015 - present);
and Certifications                              • President Director of PT Tirtakencana Batamindo (2016 - present);
• Bachelor of Science in Chemistry              • Vice President Director of PT Avia Avian Industri Pipa
  and Bachelor of Science in                      (2017 - present);
  Chemical Engineering from the                 • President Director of PT Solusi Rumah Praktis (2018 - present);
  University of Southern California,            • President Commissioner of PT Bangun Bersama Solusindo
  Los Angeles, 1996; and                          (2021 - present); and
• Master of Engineering in Chemical             • Commissioner of PT Multipro Paint Indonesia (2021 - present).
  Engineering      from     Cornell
  University, New York, USA, 1997.
                                                Education/Training in 2023
                                                • Economic Outlook 2023 by PT Bank Central Asia Tbk;
Affiliation                                     • Asian Investment Conference 2023 by Credit Suisse;
Is an affiliate of a members of the             • Mid Year Outlook 2023 by Union Bank of Switzerland AG;
Board of Commissioners, other                   • GIC Insight 2023 by GIC;
members of the Board of Directors,              • Twenty-Second Annual Asia Pasific Summit by Morgan Stanley;
as well as Main and Controlling                   and
Shareholders.                                   • Forbes CEO, Sea Change by Forbes.




                                                   2023 Annual Report - PT Avia Avian Tbk              57
Page 60
                                      Robert Christian Tanoko
                                      Director

                                      Indonesian, 38 years old.



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


                                               Work Experiences
                                               • Vice Director of Operations of the Company (2009 - 2015); and
                                               • Director of PT Tirtakencana Tatawarna (2014 - 2017).


                                               Dual Appointments
                                               • Director of PT Avia Avian Industri Pipa (2014 - present);
                                               • Director of PT Tancorp Surya Sentosa (2015 - present);
                                               • Vice President Director of PT Tirtakencana Tatawarna (2017 - present);
Educational Background                         • Vice President Director of PT Tirtakencana Batamindo (2017 - present);
and Certifications                             • President Commissioner of PT Solusi Rumah Praktis (2018 - present);
                                               • Director of PT Bangun Bersama Solusindo (2021 - present);
Bachelor    of     Commerce in
                                               • Director of PT Multipro Paint Indonesia (2021 - present); and
Information Technology from
                                               • Chairman of the Good Corporate Governance Committee of the
Curtin University, 2006.
                                                 Company (2021 - present).

Affiliation
                                               Education/Training in 2023
Is an affiliate of a members of the
Board of Commissioners, other                  • Resin Plastic Training by Samsung Korea;
members of the Board of Directors,             • Family Business: Transition, Transformation, and Diversification by
as well as Main and Controlling                  PwC-Next Gen Club; and
Shareholders.                                  • The Cooler Earth Sustainability Summit 2023 Jakarta: “Sustainability
                                                 in Action: Opportunities for a Better Tomorrow in Indonesia” by
                                                 PT Bank CIMB Niaga Tbk.




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                                                                                             Company Profile




                                     Kurnia Hadi Sinanto
                                     Director

                                     Indonesian, 54 years old.



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


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


                                              Dual Appointments
                                              • Director of PT Avia Avian Industri Pipa (2017 – present);
                                              • Director of PT Multipro Paint Indonesia (2021 – present);
Educational Background
                                              • Member of the Good Corporate Governance Committee of the
and Certifications
                                                Company (2021 – present); and
Bachelor of Accounting from                   • Chairman of the Related Party Transaction Committee of the
Airlangga University, Surabaya,                 Company (2022 – present).
1992.

                                              Education/Training in 2023
Affiliation
                                              • Webinar Enhancing Financial Performance through Data Analytics
Is not an affiliate of members of               by Financial Services Authority (Otoritas Jasa Keuangan or “OJK”);
the Board of Commissioners, other             • Compliance Refreshment for Issuer and Public Company by OJK;
members of the Board of Directors,            • Tax Breakfast Briefing: Discussion on the New Rules of Benefits
as well as Main and Controlling                 In-Kinds by PricewaterhouseCoopers;
Shareholders, either directly or              • Artificial Intelligence (“AI”) dan Sustainability in Financial
indirectly, up to the Individual                Profession by Accounting Development Center, Faculty of
Owner.                                          Economics and Business, University of Indonesia;
                                              • International Accounting Standards Board (“IASB”) Update:
                                                The Latest Developments in IFRS by Indonesian Accountants
                                                Association;
                                              • Tax Conversation Series: Latest Preliminary Evidence Examination
                                                Rules, What you need to Know by Assegaf Hamzah & Partners;
                                              • Tax Facilities on Dividends by PB Taxand;
                                              • Inspiring Transformational Governance: Coaching Clinic 1 - Way
                                                forward for ESG: Streamlining and Impact Reporting by Indonesia
                                                Stock Exchange (Bursa Efek Indonesia); and
                                              • Tax Conversation: Latest Procedures for Objection and Handling
                                                of Customs Dispute Appeals by Assegaf Hamzah & Partners.




                                                 2023 Annual Report - PT Avia Avian Tbk              59
Page 62
                                                Angelica Tanisia Jozar
                                                Director

                                                Indonesian, 42 years old.



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


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


                                                         Dual Appointments
                                                         -

        Educational Background
        and Certifications                               Education/Training in 2023
        • Bachelor of Engineering from                   • Understanding and Managing Paint and Coatings Defects by
          Parahyangan Catholic University,                 KA Synergy, Malaysia;
          Bandung 2003; and                              • Understanding and Managing Paint and Coating Tests by
        • Professional Engineer from                       KA Synergy, Malaysia; and
          Parahyangan Catholic University,               • Packaging Technology in The Modern World by Indonesian
          Bandung 2021.                                    Packaging Federation.

        Affiliation
        Is not an affiliate of members of
        the Board of Commissioners, other
        members of the Board of Directors,
        as well as Main and Controlling
        Shareholders, either directly or
        indirectly, up to the Individual
        Owner.


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

In 2023, there was no change in the composition of the Company’s Board of Directors. The composition of the Board of
Directors of the Company is in compliance with the provisions of Financial Services Authority Regulation No. 33/POJK.04/2014
concerning the Board of Directors and the Board of Commissioners of Issuers or Public Companies




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                                                                                                                               Company Profile




Shareholder Information

SHAREHOLDER LIST
                                          December 31, 2023                                                    December 31, 2022

  Description            Number of             Total Nominal             Share                Number of           Total Nominal         Share
                           Shares                  Value               Ownership                Shares                Value           Ownership
                          (Shares)                 (IDR)                  (%)                  (Shares)               (IDR)              (%)
 5% or more
 PT Tancorp
                      22,674,971,000           226,749,710,000              36.60            22,674,971,000        226,749,710,000        36.60
 Surya Sentosa
 PT Wahana
                      20,129,652,900           201,296,529,000              32.49            20,129,652,900        201,296,529,000        32.49
 Lancar Rejeki
 Archipelago
 Investment             3,902,748,900           39,027,489,000               6.30              3,902,748,900        39,027,489,000            6.30
 Private Limited
 Under 5%
 Robert
 Christian              1,425,406,300           14,254,063,000               2.30              1,421,893,800        14,218,938,000            2.30
 Tanoko
 Rudi Tanoko            1,041,265,000           10,412,650,000               1.68              1,041,265,000        10,412,650,000            1.68
 Rony Tanoko            1,041,265,000           10,412,650,000               1.68              1,041,265,000        10,412,650,000            1.68
 Treasury Stock             34,618,800              346,188,000              0.06                          0                    0                0
 Public*              11,703,627,700           117,036,277,000              18.89            11,741,759,000        117,417,590,000        18.95
 Total Issued
 and Paid-Up          61,953,555,600           619,535,556,000            100.00            61,953,555,600        619,535,556,000       100.00
 Capital

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


COMPOSITION OF SHARE OWNERSHIP BY MEMBERS OF THE BOARD OF COMMISSIONERS AND
THE BOARD OF DIRECTORS
                                                     December 31, 2023                            December 31, 2022
                                                 Number of               Share                Number of             Share            Ownership
        Name                Position
                                                   Shares              Ownership                Shares            Ownership           Status
                                                  (Shares)                (%)                  (Shares)              (%)
 The Board of Commissioners
                         President
 Hermanto Tanoko
                         Commissioner
                                                               0                0                          0             0                -
 Mohammad Noor           Independent
 Rachman Soejoeti        Commissioner
                                                               0                0                          0             0                -
 The Board of Directors
                         President
 Wijono Tanoko                                       2,504,200              0.00                           0             0              Direct
                         Director
                                                                                                                                  Indirectly through
                         Vice President
 Ruslan Tanoko                                     20,959,300               0.03                 13,209,300           0.02             PT Sensasi
                         Director
                                                                                                                                     Istana Warna
 Robert Christian
                         Director              1,425,406,300                2.30              1,421,893,800           2.30              Direct
 Tanoko
 Kurnia Hadi
                         Director                      556,600              0.00                     475,000          0.00              Direct
 Sinanto
 Angelica Tanisia
                         Director                      169,300              0.00                     125,000          0.00              Direct
 Jozar




                                                                              2023 Annual Report - PT Avia Avian Tbk                     61
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SHARE OWNERSHIP BY CLASSIFICATIONS
                                                       December 31, 2023                                                     December 31, 2022

          Description                                  Number of                 Share                                        Number of                     Share
                                    Total                                                                  Total
                                                         Shares                Ownership                                        Shares                    Ownership
                                  Investor                                                               Investor
                                                        (Shares)                  (%)                                          (Shares)                      (%)
National Investor
Indonesian Individual              12,579              4,215,758,172                  6.80                  8,292              3,906,508,800                      6.30
Pension Fund Foundation                    9             29,480,700                   0.05                        15                 64,466,400                   0.10
Insurance                                  6             26,154,700                   0.04                          5                34,562,000                   0.06
Limited Company                           60       43,982,864,110                    71.00                        47          43,651,313,649                     70.46
Others                                     1                337,100                   0.00                          1                       67,200                0.00
Foreign Investor
Foreign Individual                         9                244,100                   0.00                          4                      236,200                0.00
Limited Company                          166       13,698,716,718                    22.11                       200          14,296,401,351                     23.08
Total                              12,830          61,953,555,600                   100.00                  8,564           61,953,555,600                     100.00




Main and Controlling Shareholders

                Neilson                    Audrey                        Caleb
    Ruslan                      Rudi                         Rony                          Hermanto                      Lilyani                          Muliawati
                 Fritz                      Reis                         Royce
    Tanoko                     Tanoko                       Tanoko                          Tanoko                       Tanoko                            Tanoko
                Tanoko                     Tanoko                       Tanoko

    99.995%      0.005%         99.99%         0.01%        99.999%        0.001%               82.72%                    99.86%                               70.00%

                                                                                     Robert                                                          Marvin
                                                                                                         Belinda
                                                                                    Christian                                                         Aditya
                                                                                                         Natalia
                                                                                     Tanoko                                                          Pranoto
                                 PT Asiapasifik             PT Jaya                                                                 Olivia
                PT Sensasi                                                            4.32%              4.32%                                        10.00%             Maria
                                   Rekacipta                Sentosa                                                                 Dewi
              Istana Warna                                                                                                                                              Lavetta
                                    Teknik                Lancarabadi                                                              Sutanto
                                                                                                         Caroline                                 Marcel
                 33.33%              33.33%                 33.33%                  Melisa                                          0.14%                               10.00%
                                                                                                          Novilia                                 Satrya
                                                                                    Patricia
                                                                                                         Tanoko                                  Pramono
                                                                                      4.32%              4.32%                                        10.00%
  Lim                                                       Minister for
                Wijono             PT Rukun
  Lie                                                        Finance,                                               PT Sinar Surya                         PT Marco
                Tanoko           Rimpah Rejeki
 Tjijen                                                     Singapore                                               Sarana Sukses                         Mega Mulia
  1.54%          50.44%              48.02%                                                                               50.00%                               50.00%
                                                              100.00%



                 PT Wira            PT Sensasi             GIC (Ventures)                 PT Tancorp                     PT Voka
               Laju Rejeki        Istana Warna                Pte Ltd                   Global Sentosa                  Nobelindo

                 73.56%              26.44%                                                     69.39%                    30.61%
                                                              100,00%


                                                            Archipelago                                                        Robert
     Rudi        Rony          PT Wahana                                                              PT Tancorp                               Treasury
                                                            Investment                                                        Christian                            Public
    Tanoko      Tanoko        Lancar Rejeki                                                          Surya Sentosa                               Stock
                                                              Pte Ltd                                                          Tanoko
     1.68%        1.68%          32.49%                        6.30%                                        36.60%                 2.30%        0.06%              18.89%




                                                                      PT Avia Avian Tbk


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




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Chronology of Share Listing
On December 8, 2021, the Company conducted an Initial Public Offering on the Indonesia Stock Exchange with stock code AVIA
after obtaining an effective statement from the Board of Commissioners of the Financial Services Authority based on Letter No.
S-223/D.04/2021 dated November 30, 2021. The number of issued shares was 6,200,000,000 shares or 10.0075% of the total
issued and paid-up capital with a nominal value of IDR10.- per share and an offer price of IDR930.- per share. Of all the shares
offered, 3,099,300 shares or 0.05% had been allocated for the Employee Stock Allocation (“ESA”) program. In addition, the
Company conducted Private Placement by the Selling Shareholders as Shareholders of the Company for their shares totaling
5,575,355,600 registered common shares or as much as of 10.00% of the Company’s total issued and paid-up capital on the
date of listing on Indonesia Stock Exchange at the same offer price as the Initial Public Offering. Accordingly, the Company’s
total shares listed on the Indonesia Stock Exchange is 61,953,555,600 shares with a nominal value of IDR10.- per share.




Sharia Securities
As of the end of 2021, all traded shares of the Company are sharia securities pursuant to a decision stipulated by the Financial
Services Authority (Otoritas Jasa Keuangan or “OJK”) so that they are listed under the List of Sharia Securities (Daftar Efek Syariah
or “DES”). The DES is a register of securities that do not conflict with sharia principles in the capital market.

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

The inclusion of the Company’s shares into the DES provides ease to investors as the investments made can be guaranteed
halal and free from riba. In addition, investors are also given the freedom to conduct transactions of the Company’s shares as it
may be undertaken on conventional exchanges and sharia exchanges.




                                                                 2023 Annual Report - PT Avia Avian Tbk                 63
Page 66
Company’s Stock Index
Stock index refers to the statistical measures that reflect the overall price movements of a selected group of stocks based
on specific criteria and methodologies, evaluated periodically. In 2023, the Company’s shares, codenamed AVIA, became
a constituent of several indexes on the Indonesia Stock Exchange (“IDX”), namely ESGQKEHATI, JII70, IDX80, KOMPAS100,
IDXQ30, and IDXSMC-LIQ.

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




Chronology of Other Securities Listing
Up until the end of 2023, the Company has not issued other securities such as bonds, sukuk, convertible bonds, or other
securities that are justified in accordance with the laws and regulations.




Corporate Structure

                                                 PT Avia Avian Tbk




          50.00%                         99.99%                          99.99%                          67.00%



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



                                         99.98%




                                    PT Tirtakencana
                                      Batamindo




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Subsidiaries, Associates, and Joint-Ventures
Up until the end of 2023, The Company directly owns 3 Subsidiaries and indirectly owns 1 Subsidiary. In addition, the Company
also owns 1 joint-venture. Information related to the Subsidiaries and joint-venture is described as follows:

DIRECT OWNERSHIP
                                                  PT Tirtakencana Tatawarna
        Legal Basis of Establishment                      Business Sector                           Operational Status
 Deed of Establishment No. 27, dated
                                              Wholesale trade of paints, warehousing
 July 14, 2000, drawn up before
                                                 and storage, and self-owned or                         Operating
 Dyah Ambarwaty Setyoso, S.H.,
                                                        leased real estate.
 a Notary in Surabaya.
                   Address                               Share Ownership                      Total Assets Before Elimination
 Jl. Raya Surabaya - Sidoarjo KM. 19,
 Desa Wadungasih, Kec. Buduran,
                                                               99.99%                             IDR3,830,103,145,307.-
 Kab. Sidoarjo, Provinsi Jawa Timur,
 Indonesia.


                                                    PT Solusi Rumah Praktis
        Legal Basis of Establishment                      Business Sector                           Operational Status
 Deed of Establishment No. 17 dated
 November 22, 2018, drawn up before             Retail trade of paints, varnishes, and
                                                                                                        Operating
 Anwar, S.H., M.Kn., a Notary in Gresik            Lacquers, as well as painting.
 Regency.
                   Address                               Share Ownership                      Total Assets Before Elimination
 Avian Brands Building,
 Jl. Ahmad Yani No. 317,
                                                               99.99%                               IDR2,075,669,496.-
 Kel. Dukuh Menanggal, Kec. Gayungan,
 Kota Surabaya, Jawa Timur, Indonesia.


                                                 PT Multipro Paint Indonesia
        Legal Basis of Establishment                      Business Sector                           Operational Status
                                                  Paint and printing ink industry,
 Deed of Establishment No. 80 dated
                                               varnish industry (including mastics),
 August 27, 2008, drawn up before                                                                       Operating
                                              wholesale trade of paints, and wholesale
 David, S.H., M.Kn., a Notary in Jakarta.
                                                trade of various building materials.
                   Address                               Share Ownership                      Total Assets Before Elimination
 Menara Satu Sentra Kelapa Gading,
 7th Floor, Room 6,
 Jl. Boulevard Kelapa Gading LA 3 No. 1,
                                                               67.00%                               Rp31,834,298,639.-
 Kel. Kelapa Gading Timur,
 Kec. Kelapa Gading, Jakarta Utara,
 DKI Jakarta, Indonesia.



INDIRECT OWNERSHIP
                                PT Tirtakencana Batamindo (through PT Tirtakencana Tatawarna)
        Legal Basis of Establishment                      Business Sector                           Operational Status
 Deed of Establishment No. 58 dated                  Wholesale trade of various
 September 30, 2010, drawn up before           building materials, wholesale trade of
                                                                                                        Operating
 Rusdi Mulyono, S.H., M.Kn.,                     other construction materials, and
 a Notary in Surabaya.                                retail trade of furniture.




                                                                 2023 Annual Report - PT Avia Avian Tbk                  65
Page 68
                                PT Tirtakencana Batamindo (through PT Tirtakencana Tatawarna)
                  Address                                   Share Ownership                         Total Assets Before Elimination
Komplek Executive Industrial Park
Blok D2 No. 8, Kel. Belian, Kec. Batam Kota,                      99.98%                                   Rp34,982,411,405.-
Kota Batam, Kepulauan Riau, Indonesia.



JOINT-VENTURE
                                                    PT Bangun Bersama Solusindo
       Legal Basis of Establishment                          Business Sector                              Operational Status
Deed of Establishment No. 1 dated               Wholesale trade of cement, lime, sand, and
February 1, 2021, drawn up before                stone as construction materials, building
                                                                                                               Operating
Emmyra Fauzia Kariana, S.H., M.Kn.,                materials, as well as basic or industrial
a Notary in Jakarta.                                  chemical materials and goods.
                  Address                                   Share Ownership                         Total Assets Before Elimination
Menara Sentraya, 21 Floor,
                     st

Jl. Iskandarsyah Raya No. 1A,
                                                                  50.00%                                  IDR43,061,798,385.-
Kel. Melawai, Kec. Kebayoran Baru,
Jakarta Selatan, DKI Jakarta, Indonesia.




Capital Market Supporting Institutions and
Professions
                                                        Public Accounting Firm
KAP Tanudiredja, Wibisana,                 Services Provided : Audit Services     : Performed audits of the Company’s Annual
Rintis & Rekan                                                                      Consolidated Financial Statements based on
(a member firm of PwC                                                               auditing standards established by the Indonesian
global network)                                                                     Institute of Certified Public Accountants.
WTC 3, 33rd-43rd Floor                                         Non-Audit Services : None.
Jl. Jend. Sudirman Kav. 29-31              Assignment Period : 2023
Jakarta, 12920, Indonesia                  Cost (IDR)        : Audit Services     : IDR1,250,000,000.-
T : (62-21) 5099 2901                                          Non-Audit Services : None.
F : (62-21) 5290 5555


                                                                  Notary
Dr. Susanti, S.H., M.Kn.                   Services Provided : Prepared the deed of Minutes of the Annual General Meeting of
Ruko Office Park 1                                             Shareholders (“GMS”) and Extraordinary GMS, as well as the deed of
Jl. Bukit Darmo Golf Blok B1 No. 19                            Restatement of Meeting Resolutions (Pernyataan Keputusan Rapat or
Kel. Pradahkalikendal, Kec. Dukuh Pakis                        (“PKR”).
Surabaya, 60226, Indonesia                 Assignment Period : 2023
T : (62-31) 9914 6264


                                                  Securities Administration Bureau
PT Bima Registra                           Services Provided : • Performed data maintenance, prepared presentation of the Shareholders
Satrio Tower, 9 A2 Floor                                         List (Daftar Pemegang Saham or “DPS”) and monthly reports;
Jl. Prof. DR. Satrio Blok C4                                   • Assisted in the organization of Annual GMS and Extraordinary GMS in
Kuningan, Setiabudi                                              the context of the presentation of DPS per recording date, attendance
Jakarta Selatan, Indonesia                                       list, and assisted in the vote count at the GMS; and
T : (62-21) 2598 4818                                          • Assisted in the implementation of interim dividend and final dividend
F : (62-21) 2598 4819                                            payments in context of the presentation of DPS per recording date, as well
                                                                 as calculating the amounts of dividends and taxes for each Shareholder.
                                           Assignment Period : 2023




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Information Access
The provision of information access for the Shareholders and stakeholders is periodically managed and updated by the
Corporate Secretary and Investor Relations as necessary and in accordance with the applicable regulations. The provision of
information to Shareholders and stakeholders may be further accessed through:




                                                                                                               E-mail
                                                         Telephone
                                                                                                       corsec@avianbrands.com
                                                       (62-31) 99850500/
                                                           99850600                                       investor.relations@
                              Avian Brands                                                                 avianbrands.com
                                Building                                             Website
                            Jl. Ahmad Yani No. 317                              www.avianbrands.com
                                Surabaya, 60234




Human Resources
The Company views that human resources (“HR”) is an asset that plays a crucial role in supporting the Company’s sustainable
performance. Therefore, proper HR management in compliance with the statutory regulations and best practices in similar
industries remain the Company’s utmost priority, to ensure that the Company’s HR possesses relevant qualifications to remain
competitive amid dynamic business challenges. Responsible HR management and the absence of discriminatory practices are
consistently prioritized by the Company, in order to foster productive and comfortable working relationships and environments.



Organizational Structure of HR Management

The Company’s HR management and development organizations are overseen by the Company’s HRGA units, particularly the
units focusing on Employee Development, Organizational Development, Recruitment, HRIS, HR Operations, as well as General
Affair and Industrial Relation. Further details on organizational structure of the Company’s HR management are described as
follows:


                                                      HRGA




                POD & Recruitment                                                  HR Operations




   People          Organization        Recruitment          HRIS             Personel       General Affair       Industrial
Development        Development                                             Administration                         Relation




                                                              2023 Annual Report - PT Avia Avian Tbk               67
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HR Development

The Company consistently ensures that all employees possess the competences and skills aligned with the needs of the
Company and current industrial landscape. This commitment is implemented through development of a systematically
mapped HR management strategy with a long-term focus to ensure the continuity of competence development in line with
the Company’s business direction.

HR management development in 2023 focused on organizational sustainability, ensuring the quality of HR Business Processes,
and preparing for the business expansion of the Cirebon Plant in 2025. To achieve these targets, the Company has implemented
various initiatives as described as follows:
1. Standardize and align HR Business Process Flow to all Subsidiaries through digitalization program;
2. Implement an advanced individual development program focusing on individual assignment and mentoring program to
    realize development programs for supervisory level;
3. Formulate programs to drive behavioral change and enhance productivity, such as maximizing digital systems for discipline
    and implementing employee recognition or employee star programs;
4. Infiltrate the Corporate Culture across all personnel of the Company through internal channels and events, such as Avian
    News, Employee Community, and various internal company events; and
5. Update the employee competency assessment system in alignment with individual development programs.

The Company also continuously strives to create a respectful work environment by constantly upholding the Anti-Bullying
principle, providing a complaint channel, and utilizing the whistleblowing system. In addition, the Company also organizes
sports activities to build Employee Community, such as Table Tennis, Gymnastics, Futsal, and Badminton. The Company will
develop other Employee Community programs in the coming year.



Recruitment

In HR management process, recruitment is a crucial phase for the Company and its Subsidiaries, considering that the recruitment
process is an initial step that can determine the HR management strategy. Moreover, recruitment phase is also a vital part of
organizational regeneration process. Therefore, the Company and its Subsidiaries always ensure that prospective employees
align with the Company’s needs and Values, both in terms of competences and attitudes. Generally, the recruitment process for
the Company and its Subsidiaries is divided into two methods: internal and external recruitment. Internal recruitment is carried
out through promotions, transfers, and rotations of existing employees. External recruitment, on the other hand, involves open
selection for prospective employees, either independently or in collaboration with external parties, such as job fairs, campus
recruitments, and job portals.

The Company has also implemented a digitized recruitment system to target and acquire high-quality and potential candidates.
Since 2022, the Company has established a recruitment database on its website, aimed to support the recruitment process from
vacancy advertisements, candidate database storage, candidate selection, online test result storage, to online job interviews.
The entire recruitment process is free of charge, conducted openly without discrimination based on ethnicity, religion, race,
gender, or political affiliation, for every candidate meeting the specified requirements. Throughout 2023, the Company
and its Subsidiaries recruited a total of 266 new employees placed in various positions within the Company and its Subsidiaries.




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Composition

By the end of 2023, the number of employees of the Company and its Subsidiaries (including outsourced employees) totaled
8,554 individuals, an increase of 5.20% compared to 8,131 individuals in 2022. Detailed composition of employees of the
Company and the Subsidiaries is presented below:

                                             2023                                                         2022
     Category           The                      Subsidiary                       The                         Subsidiary
                      Company       TKTW     TKBI     SRP      BBS      MPI     Company         TKTW      TKBI      SRP      BBS   MPI
 Number of Employees by Gender
 Male                    1,454      5,268      32       1        4       55       1,396         5,025       30        2       4     34
 Female                   227       1,488       8       0        4       13        232          1,386        7        0       4     11
 Total                   1,681      6,756      40       1        8       68      1,628          6,411      37         2       8     45
 Number of Employees by Position
 Deputy Director             5        12        0       0        1        1          5             12        0        0       1      0
 Manager                    66       176        1       1        5        7         64            155        1        1       5      7
 Supervisor                 75       576        4       0        0        6         57            529        4        0       0      4
 Staff                    464        230        0       0        2       35        500            201        0        1       2     32
 Outsourcing             1,071      5,762      35       0        0       19       1,002         5,514       32        0       0      2
 Total                   1,681      6,756      40       1        8       68      1,628          6,411      37         2       8     45
 Number of Employees by Age
 >50 years old              61        83        0       0        1        6         52             76        0        0       1      7
 36 – 50 years old        397       1,754      24       1        4       16        416          1,607       15        1       4     15
 18 – 35 years old       1,223      4,919      16       0        3       46       1,160         4,728       22        1       3     23
 Total                   1,681      6,756      40       1        8       68      1,628          6,411      37         2       8     45
 Number of Employees by Education
 Master Degree              17        13        0       0        2        0         14              9        0        0       2      1
 Bachelor Degree          313       1,508       6       1        5       26        274          1,371        7        1       5     16
 Diploma (D3)               19       282        0       0        0        4         19            255        1        0       0      7
 ≤High School and
                         1,332      4,953      34       0        1       38       1,321         4,776       29        1       1     21
 Equivalent
 Total                   1,681      6,756      40       1        8       68      1,628          6,411      37         2       8     45
 Number of Employees by Employment Status
 Permanent
                          522        861        5       1        7       24        481            761        5        2       7     18
 Employee
 Non-Permanent
                            88       133        0       0        1       25        145            135        0        0       1     25
 Employee

 Outsourcing             1,071      5,762      35       0        0       19       1,002         5,515       32        0       0      2

 Total                   1,681      6,756      40       1        8       68      1,628          6,411      37         2       8     45

Notes:
TKTW : PT Tirtakencana Tatawarna            TKBI : PT Tirtakencana Batamindo              SRP    : PT Solusi Rumah Praktis
BBS : PT Bangun Bersama Solusindo           MPI : PT Multipro Paint Indonesia




                                                                     2023 Annual Report - PT Avia Avian Tbk                   69
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Competence Development

The Company and its Subsidiaries consistently involve employees in various competence development programs that are
continuously aligned with our needs. This is primarily aimed at advancing the capabilities of our HR to boost their productivity.
Competence development programs attended by employees of the Company and its Subsidiaries are not only organized
internally, but also involve collaborations with qualified external parties in their respective fields, targeting development
in both basic and technical competencies. Each employee of the Company and its Subsidiaries is provided with equal
opportunities to participate in competence development programs in their respective fields. Throughout 2023, the Company
and its Subsidiaries organized and enrolled a total of 31,634 participants in 318 competence development programs.
Further details are described as follows:

                                                                                                                  Number of
    Type of                                                                                         Number of
                                                                                                                 Competence
 Competence              Target of Competence              Appointment              Number of      Competence
                                                                                                                 Development
 Development                 Development                   of Participants         Participants*   Development
                                                                                                                    Hours
   Program                                                                                          (Program)
                                                                                                                    (Hour)
                     To polish skills and teach norms
 Basic               to support employees in the             Staff – Deputy
                                                                                         3,684         123         11,888.50
 Competence          implementation of their duties             Director
                     and responsibilities.
                     To certify and improve skills
 Technical                                                   Staff – Deputy
                     that can support the work of                                       27,950         195         51,637.72
 Competence                                                     Director
                     employees.

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




Standardization of HR System

The Company’s HR management goes beyond developing employee competencies, it also focuses on continually refining
the HR management system itself. The Company consistently conducts analyses and reviews of the existing HR standards to
align them with current developments and create harmony with the Company’s plans and strategies. In 2023, the Company
conducted an evaluation of the effectiveness of the Standard Operating Procedures (“SOP”) for the entire Company organization,
consisting of 9 SOPs, 1 standard, and 18 forms.



Complaint Management

The Company always ensures that working relationships with employees and relationships between employees continue
to run well. The aim is to maintain the productivity of each employee at an optimal level. To realize this commitment, the
Company has in place a complaint management which is a procedure on handling of complaints from all employees. Any
employee may submit complaints through 2 methods, which are submitted directly to the supervisor verbally or by filling out
a survey form online or offline through the suggestion box provided. Any complaint will be managed until it is resolved, either
internally by the direct supervisor working together with the employee concerned or by the Complaints Team. If the Complaints
Team is still unable to resolve the employee’s complaint, then the Bipartite Cooperation Institution and the Top Management
will be engaged to negotiate the best resolutions to the existing complaint.

In 2023, the Company conducted one employee complaint survey, with a total of 161 respondents participating. This shows
that there is no barrier for employees to lodge their complaints. Additionally, the survey is often used by employees to convey
their appreciation for the changes and developments within the Company.




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In addition to the complaint survey, in 2023 the Company also conducted two employee satisfaction surveys on the services
provided by the Human Resources Department, with the following results:


                                    TOTAL PERCENTAGE OF OVERALL SERVICE SCORE
 CATEGORY PERCENTAGE (%)




                                                                   53.22


                                         35.67




                                                                                           9.94
                                                                                                                    1.17

                                             4                       3                         2                      1

                                    (Very Satisfied)            (Satisfied)        (Slightly Satisfied)       (Dissatisfied)


Employee Turnover

The Company strives to implement fair and responsible HR management, in realizing the commitment to creating a professional
and comfortable working environment. The aim is to make the Company an ideal and desirable workplace where employees
can contribute and unleash their full potential. The Company believes that such work environment will reduce the likelihood
of employee turnover. This step is also part of the Company’s long-term HR management strategy. Uncontrolled employee
turnover rates can undoubtedly impact the achievement of HR management targets and the Company’s overall objectives.
Information on the employee turnover rate for the Company and its Subsidiaries is described as follows:

                                                                         2023*                                              2022*
                           Source
                                                           Total                       %                        Total                       %
 Retirement                                                   9                         6.77                         1                      0.50
 Resignation                                                 73                       54.88                         96                     47.76
 Termination of Employment                                   42                       31.58                         22                     10.95
 Employment Status Change                                     6                         4.51                        81                     40.29
 Deceased                                                     3                         2.26                         1                      0.50
 Total Employee Turnover                                   133                       100.00                       201                    100.00

* The measurement of the employee turnover rate above includes permanent employees of the Company and its Subsidiaries. The Company does not measure
  the turnover rate for outsourced employees, given the high fluctuation of outsourced employees depending on the increase or decrease in total production.




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Employee Performance Evaluation

The employee performance evaluation process is conducted periodically by the Company every year. This initiative is carried
out for all Company’s employees to ensure that they perform their duties and responsibilities professionally and achieve the
predetermined targets according to their respective skills and positions. The indicators used for performance evaluation are
described as follows:

                                             TYPES OF EMPLOYEE EVALUATION




       COMPETENCE MATRIX                            PERFORMANCE APPRAISAL                                      ASSESSMENT
  The process of measuring technical                  The process of measuring                     The process of measuring potential,
  competence fulfillment to support             competence fulfillment to support job                 conducted periodically using
       technical job functions.                         functions, including                       assessment tools as a consideration
                                                performance achievements, leadership                     for granting promotion.
                                                     assessment, and work ethic.


In 2023, the Company conducted a performance evaluation for all its employees.



HR Development Strategy in 2024

The Company maintains a strong commitment to continually improve HR management, as well as the capacity and
capabilities of each employee. HR Development plans and strategies to be implemented by the Company in 2024 are
described as follows:



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



             Technical Training
             Training aimed to improve employees’ technical skills, in order to boost their capabilities and performance in line   2
             with the Company’s needs.



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




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



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




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Information Technology




The Company acknowledges the essential role of Information Technology (“IT”) in supporting its business activities. For the
Company, the existence of IT is vital in realizing strategic goals, especially in assisting business processes and supporting
the Company’s operations, in addition to proper decision-making based on valid data. Therefore, the Company places IT as a
pivotal element in its operational activities, thereby increasing efficiency in the production chain of a large-scale manufacturing
industry. The Company continuously strives to improve the speed, accuracy, reliability and stability of the flows of information
and communications, and to support automation of various internal processes.



IT Development

The Company strives to continuously refine its IT utilization as part of its commitment to support operational effectiveness and
efficiency.

IT Development in 2023
The 2023 IT development strategy implemented by the Company is described as follows:
1. Development of Asset Management Program (“AMS”)
   In managing assets, users require tools to perform asset data collection, asset maintenance, asset regeneration, and
   planning for asset procurement with a better overview. The benefits of developing an asset management program include:
   a. Improving timeliness for planning of new assets or regeneration of assets that are about to expire;
   b. Facilitating supervision for the return of employee work facilities that become the Company’s assets when the employee
       resigns;
   c. Accelerating the asset mutation process because it is paperless and approval may be done digitally; and
   d. Facilitating each department to conduct self-audit.




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2. Development of Document Control Program                          IT Development Strategy in 2024
   Programs for internal document control, such as standard         The Company strives to continuously refine its IT utilization
   operating procedures (“SOP”), forms, regulation of the           as part of its commitment to improve customer service and
   flow of new document creation and approval, document             support operational effectiveness and efficiency. The IT
   renewal and history, and rights for each department to           development strategy for 2024 drawn up by the Company
   access internal documents of the Company. The benefits           is described as follows:
   of developing a document control program include:                1. Implementation of Warehouse Management System
   a. More integrated and centralized document sources                  for Raw Materials (“WMS-RM”)
        to ensure that all users use the same source;                   A warehouse management system that enables the
   b. Facilitating and accelerating the document                        Company to effectively manage raw material stocks in
        searching processes of users from each department;              the warehouse, with advantages as described as follows:
   c. Accelerating the approval processes from the                      a. Facilitating placement of raw materials in the
        department head or the Board of Directors as the                    warehouse using a racking system, allowing proper
        processes are done systematically and involves                      placement of items;
        email notifications;                                            b. Facilitating retrieval of raw materials for production,
   d. Facilitating the tracking of document changes                         eliminating errors in retrieval of items in shipments
        because the history of document changes can be                      and allowing fifo to be carried out properly; and
        recorded properly; and                                          c. Improving employee performance and productivity,
   e. Improving data security as access rights can be                       particularly those working in the warehouse.
        managed and controlled.                                             Items placed on shelves and those to be retrieved
3. Server Regeneration in the Data Center                                   from shelves can be efficiently accessed, thereby
   An IT device with a key and critical role is the server.                 optimizing the processing time as the system
   In terms of server management, one of the things                         already provides suggested layouts for those items.
   that needs to be considered is the period of server              2. Regeneration of Warehouse and Plant Factory
   usage which requires the development of procedures                   Infrastructure Installation
   concerning server regeneration to also be formulated.                Modernizing through the incorporation of the latest IT
   In the context of Sustainable Business, regeneration                 solution with several advantages:
   is crucial such that it draws special attention from                 a. Utilizing data line, telephone, and fiber optic to
   the Company’s Management. The benefits of server                         facilitate seamless communication and data flow.
   regeneration include:                                                    Using routers to preemptively counteract virus
   a. Anticipating damages to the old server to ensure                      spread and firewalls to regulate security, which
        that business processes can run normally without                    ensure more accurate data communication and well-
        interruptions;                                                      maintained data security.
   b. Increasing work efficiency, effectiveness, and                    b. Centralizing CCTV systems which allows for
        stability due to the adoption of new technologies;                  centralized monitoring and maintenance. In case
   c. Increasing the redundancy of server devices due to                    of disruptions, swift and efficient solutions can be
        the availability of new servers for productive activities           implemented, enhancing the security of goods and
        while the old server can be used as a backup; and                   facilitating supervision; and
   d. Increasing IT HR knowledge of the latest technologies             c. Minimizing downtime during maintenance activities
        which is also one of the management policies.                       and facilitating reconstruction in the event of
4. Using Network Monitoring Tools                                           location expansion or development to increase
   Supervision of the established IT network must be done                   storage capacity in the Warehouse or production
   periodically because the data contained in the network                   capacity in the Plant.
   traffic needs to be analyzed. The benefits of network            3. Improvements to Sales Force Automation (“SFA”)
   monitoring include:                                                  Application
   a. Increasing the speed of response in the event that                Improvements to the SFA application, a system supporting
        the network is down or not functioning normally;                the sales team’s tasks, with several advantages:
   b. Observing network systems in order to find                        a. Developing the application to effectively accommodate
        weaknesses that should be fixed; and                                the latest technologies. Additionally, ensuring proper
   c. Maximizing the resources of existing IT devices so                    compatibility with the latest hardware;
        that they may be used optimally.                                b. Accelerating incoming order processing speed;




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   c. Simplifying supervision and device control, as devices cannot be turned off during business hours; and
   d. Implementing preventive measures to minimize or avoid fraud, such as log files or audit trails used for analysis and
       monitoring of events.
4. Development of HR Management System (“HRMS”) Application
   Continuously innovating in human resource management is a crucial step for the Company, as it aims to remain competitive
   and efficient in the digital era. In this context, we have developed the Human Resource Management System (“HRMS”) - a
   revolution in how we support and manage our team, with several advantages:
   a. Paperless Operation, Improved Service Quality: HRMS enables our employees to handle all their administrative needs
       on a digital and paperless basis, saving us from piles of physical documents, and improving the quality of service we
       provide to our team;
   b. Real-Time Reporting: We can access real-time reports of all ongoing processes, thus giving us a clearer view of what
       happens in our team and allowing us to make more timely decisions;
   c. Documentation Efficiency: Documentation processes become easier and more efficient, allowing us to save valuable
       time and allocate more resources to strategic activities;
   d. Fast Data Processing: HRMS helps us quickly process and present data in easily understandable report formats, thus
       helping us make decisions based on accurate data;
   e. Better Information Distribution: We can easily distribute information to other departments or directly to relevant
       employees, ensuring that everyone has access to the information they need;
   f. Improving Team Performance: HRMS assists leaders and managers in monitoring and evaluating team performance,
       providing insights into individual and collective achievements and areas for improvement.
   g. Improving Discipline: Integrating employee attendance data with automatic notifications improves employee
       attendance, positively affecting operational productivity and efficiency.




                                                             2023 Annual Report - PT Avia Avian Tbk             75
Page 78
Management
Discussion and
Analysis




“Various strategic initiatives
implemented throughout 2023 have
successfully maintained our position as
market leader in national paint industry,
with vast marketing reach and strong
brand recognition. This has contributed
to the achievement in operational and
financial performance, enabling us
to continue delivering added value
to stakeholders, particularly to the
Shareholders through dividend
distribution, among others.”




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Economic Overview
The global economy in 2023 is projected to see limited growth, amid the lingering dynamics and challenges such as heated
geopolitical tensions and prolonged impact of Covid-19 pandemic. These challenges, albeit starting to subside compared to
the previous year, are nonetheless driving economic fragmentation that intensifies global supply chain disruptions, restricts
trade and investment flows, and lowers growth prospects. The International Monetary Fund projects the global economic
growth to decline to 3.0% in 2023, from 3.5% in 2022. Economic developments in various countries show mixed performances.
European countries’ economy is projected to remain troubled, resulting in economic growth declining to 0.7% from 3.3% in
2022. In the United States (the “US”), economic growth is projected to see limited growth at 2.1%, relatively stable compared to
2022. As for China, its economic growth is projected to reach 5.0%, up from 3.0% in 2022.

Correspondingly, inflation in developed countries, including the US, is on a downward trend compared to the previous year,
but remains above the target. This indicates that monetary tightening, including the Fed Funds Rate (“FFR”), has peaked, but
it is projected to remain high for a prolonged period (high for longer). This projection is backed by the Fed’s policy of holding
interest rates for the third consecutive time at 5.25% - 5.50% as of December 2023. This clear monetary policy direction in
developed countries has helped alleviate uncertainties in global financial markets. In connection with this, capital inflows have
started to come in, reducing the pressure on the depreciation of exchange rate in emerging markets, including Indonesia.

Indonesian economy in 2023 regained stability and resilience amid global macroeconomic dynamics, recording a growth of
5.05%. In terms of business sector, the Indonesian economy was mainly driven by the performance growth of manufacturing
industry at 4.64%, trade industry at 4.85%, and agriculture at 1.30%. On the expenditure side, strong domestic demand pushed
household consumption and fixed investment to grow by 4.82% and 4.40%, respectively, on the back of maintained public
confidence. This was confirmed by various leading indicators, such as consumer confidence, retail sales, and Purchasing
Managers’ Index (PMI) in Manufacturing, which showed positive performance up until December 2023. In addition, the inflation
rate also stayed within the 3.0±1% target range. Based on data from the Statistics Indonesia (Badan Pusat Statistik), inflation in
2023 was recorded at 2.61%, down from 5.51% in 2022.

Source:
• World Economic Outlook October 2023 edition, International Monetary Fund;
• Official Statistics News (Berita Resmi Statistik), Statistics Indonesia (Badan Pusat Statistik);
• Monetary Policy Overview (Tinjauan Kebijakan Moneter) December 2023 edition, Bank Indonesia; and
• Economic, Financial and Fiscal Overview 2023 IV Edition, Ministry of Finance.




Industry Overview
Our national economic resilience amidst the global economic downturn has had a positive impact on business development
in various sectors. Manufacturing industry performance in 2023 recorded a 4.64% growth. Having accounted for 18.67%
of GDP, manufacturing industry is the largest contributor and cornerstone of national economic growth. In tandem with
manufacturing industry growth, the national paint industry also enjoys positive momentum. Government support for
infrastructure and property development is the primary catalyst for paint industry growth. The property sector, in particular, is
a major driver of demand for paint products, with constructions of new projects continuing to increase. Additionally, the paint
industry’s pivotal role in supporting the furniture and creative industries underscores its extensive contribution to the national
economic ecosystem.




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In the retail segment, declining inflation rates in 2023 provided additional impetus for paint industry growth. Price stability
also stimulated people’s purchasing power, leading to an increase in paint product consumption. Additionally, declining raw
material prices have positively impacted the margins and profitability of businesses in this industry. Meanwhile, intensive
innovations adopted by national paint manufacturers, particularly in environmental sustainability and flexibility in responding
to changing market trends, are crucial cornerstones for the future growth of the national paint industry.

Source:
• Official Statistics News (Berita Resmi Statistik), Statistics Indonesia (Badan Pusat Statistik); and
• Article by the Ministry of Industry.




Operational Overview

Operational Overview by Operating Segments

In accordance with PT Avia Avian Tbk and Subsidiaries’ Consolidated Financial Statements for the financial year ended
December 31, 2023 and 2022 audited by Public Accounting Firm of Tanudiredja, Wibisana, Rintis & Rekan (a member firm
of PwC global network) in Note No. 34 on Segment Reporting, we classify our operating segment reporting into two broad
segments, namely architectural solutions segment and trading goods segment. Information regarding both operating
segments is described as follows:

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

Profitability and Contribution of Architectural Solutions Segments
The architectural solutions segment is the main pillar of our business, contributing to 80.06% of total net revenue. The
architecture solutions segment’s net revenue in 2023 reached IDR5,618.03 billion, an increase of 4.35% compared to IDR5,384.02
billion in 2022. Meanwhile, the cost of goods sold recorded by architectural solutions segment in 2023 reached IDR2,686.05
billion, a decrease of 7.17% compared to IDR2,893.41 billion in 2022. Thus, the gross profit of architectural solutions segment
in 2023 increased by 17.72% to IDR2,931.97 billion, from IDR2,490.61 billion in the previous year.

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

Profitability and Contribution of Trading Goods Segments
The trading goods segment’s net revenue in 2023 reached IDR1,398.86 billion, an increase of 6.77% compared to IDR1,310.15
billion in 2022. Meanwhile, the cost of goods sold recorded by trading goods segment in 2023 reached IDR1,147.49 billion, an
increase of 5.92% compared to IDR1,083.36 billion in 2022. Thus, the gross profit of trading goods segment in 2023 increased
by 10.84% to IDR251.37 billion from IDR226.79 billion in the previous year.




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Paint Manufacture Performance

Paint Manufacturing Process Flow
Our paint manufacturing process involves a series of complex stages to produce high-quality paint products. This is also backed
by our skilled workforce with the assistance of machinery and technology. In each manufacturing process, we always adopt
responsible production pattern by complying with applicable standards and regulations. The paint manufacturing process
may vary depending on the type of paint manufactured. Nevertheless, our paint manufacturing process can generally be
described as follows:




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

PAINT MANUFACTURING REALIZATION
                                   2023                                   2022                             Increase
   Description                         Contribution                           Contribution
                     Metric Tons                            Metric Tons                            Metric Tons         %
                                           (%)                                    (%)
 Sidoarjo Plant        130,325               72.19             128,451              75.12             1,874            1.46
 Serang Plant           50,215               27.81              42,535              24.88             7,680           18.06
 Total Production      180,540              100.00            170,986              100.00             9,554            5.59




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                               2023                                                                2022
     27.81%                                                                   24.88%




                                                        72.19%                                                          75.12%

                                                       Sidoarjo Plant        Serang Plant


Throughout 2023, the total production we managed to realize was 180,540 metric tons, an increase of 5.59% compared to
170,986 metric tons in 2022. The increase in production in 2023 was greater than the increase in sales. This is largely attributed
to the addition of new distribution centers, which need to prepare inventory in advance, and the launch of new products that
increase inventory levels.

Innovation and Development of Paint Production Process
In addition to manufacturing a variety of paint products, as an integrated paint manufacturing company, we are also able to
produce paint packaging and resin raw materials independently using special machinery. Almost all of our resin needs are
covered by our own in-house production, and this is a strength for us, considering that resin is one of the main raw materials
in the manufacturing process. Similarly, we are able to manufacture the packaging of cans (metal) for solvent-based products
in-house. Packaging for water-based products (plastic), on the other hand, must be supplied by sister companies to ensure
quality and continuity of supply. In addition to these two materials, we also manufacture certain additives and colorants. To
keep production costs competitive with external suppliers, we regularly conduct benchmarks.



Profitability

We use a profitability ratio approach to measure our effectiveness in generating profit. Information regarding our profitability
level over the past 2 years is described as follows:

                                                                                                                                (in %)

                                               Description                                            2023             2022

 Ratio of Profit Before Income Tax Expense to Net Revenue                                             28.39             26.07

 Ratio of Profit Before Income Tax Expense to Total Assets                                            17.84             16.17

 Ratio of Profit Before Income Tax Expense to Total Equity                                            20.08             18.23

 Ratio of Profit for the Year to Net Revenue                                                          23.42             20.92

 Return on Assets (ROA)                                                                               14.71             12.98

 Return on Equity (ROE)                                                                               16.56             14.63


The profitability ratio indicates our ability to generate profit, as measured by comparing profit before income tax expense and
profit for the year with net income, total assets, and total equity. Higher profitability ratio indicates better ability to generate
profit. In 2023, our profitability ratio increased when compared to 2022. This was mainly influenced by the declining price of
several raw materials, which contributed to increase in our gross profit. Despite facing intense competition and opening of new
distribution centers, which increased operational expenses, our consistent efficiency and cost control efforts helped us grow
our profitability.




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Marketing and Distribution Aspect
Given the intense competition in domestic paint industry, it is imperative for us to continuously evaluate and adjust our
strategy to maintain our competitive edge. From the marketing side, we have formulated appropriate and effective strategies
to face the competition in paint industry. In general, our marketing methods utilize 2 approaches, namely marketing with
loyalty programs (below-the-line marketing or “BTL”) and marketing via advertising media (above-the-line marketing or “ATL”)
that focuses on the use of mass media to reach a wider target audience. Information on the two strategies is further described
as follows:




                                BTL Marketing Strategy
                                • Targeting retail shops, i.e. traditional building material stores and modern outlet to distribute our
                                  products to end customers, through offering reward schemes such as gold coins, loyalty points that
                                  are redeemable into vouchers, retail shop discounts, and other forms of rewards;
                                • Convening retailer in-store events for new product launches; and
                                • Implementing incentive programs for painters through a downloadable application so that the
                                  handymen or buyers may redeem coupons inside the paint cans with e-money, such as OVO, Gopay,
                                  etc. by scanning the barcode using a mobile phone.




    ATL Marketing Strategy
    • Advertising on television, print, and radio;
    • Implementing in-store programs consisting of display and signage, store decoration, product
      categorization, and appointing product consultants to act as brand ambassadors;
    • Implementing out-of-store programs consisting of brand launches and product trainings to specific
      customer groups; and
    • Building partnerships with famous artists as brand ambassadors, especially for premium products,
      such as Joe Taslim for exterior wall paint, Sunguard All-In-One, and Cinta Laura for interior wall paint,
      Supersilk Anti Noda.




In addition to the above 2 approaches, we also continue to improve our marketing through digital marketing channels by
optimizing the use of information and communication technology developments, such as Google, YouTube, LinkedIn,
Facebook, Instagram, TikTok, and the Company’s website. This move is further supported by the marketing communications
that we establish to enhance the success of each marketing strategy implementation. We have implemented effective
marketing communication strategies aligned with customer needs to solidify our brand positioning of products sold in each
market, as well as to establish, expand, and increase awareness of customers and prospective customers.

Product distribution is another critical element of our focus, which is why we have consistently developed our wholly-owned
distribution centers since 2000. By the end of 2023, the distribution centers had expanded to cover the entire Indonesian
territory, spanning 34 provinces and 98 cities, consisting of 118 distribution centers and 14 wholly-owned mini-distribution
centers, as well as cooperation with 40 third-party distribution centers located in several cities. This network of distribution
centers enables us to pursue the one day delivery target, which has reached 94.00% by the end of 2023. Customer service is
further elevated with the introduction of express delivery, through which we guarantee delivery of customer orders within 2
hours, particularly for newly launched products, which eliminates the need for customers to store inventory in their warehouses.




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Market Share

We continue to maintain our position as the market leader in the national paint industry with a market share of more than 20%.
As a major player in this industry, we continue to strive expanding our market share so as to increase the gap with national and
multinational competitors. Up to this moment, our market serves 56,877 building material stores throughout Indonesia. We are
also a paint supplier for several contractors for various types of projects.

Apart from being supported by distribution centers, sales of our products are also supported by a solid marketing team,
including employment of product consultants stationed at retail outlet customer stores to promote products and answer
questions about our products that may be raised by end consumers visiting those stores. As of the end of 2023, we had more
than 1,100 product consultants in our sales team.




Financial Overview
This financial overview is prepared based on information derived from PT Avia Avian Tbk and Subsidiaries’ Consolidated
Financial Statements for the financial year ended December 31, 2023 and 2022 audited by Public Accounting Firm of
Tanudiredja, Wibisana, Rintis & Rekan (a member firm of PwC global network).



Consolidated Statement of Financial Position

ASSETS
                                                                                              (in millions Rupiah, unless otherwise stated)

                                                                                                         Increase (Decrease)
                             Description                              2023             2022
                                                                                                     Million IDR              (%)
 Current Assets
 Cash and Cash Equivalents                                          1,230,544         2,170,720         (940,176)            (43.31)
 Restricted Cash in Bank and Time Deposits                               2,100           3,100             (1,000)           (32.26)
 Short-term Investments                                             1,740,000                 0        1,740,000             100,00
 Investment in Government Bonds                                     2,993,887         3,875,023         (881,136)            (22.74)
 Investment in Mutual Funds                                             20,200                0            20,200            100.00
 Trade Receivables
  Related Parties                                                       14,018          11,192              2,826              25.25
  Third Parties                                                     1,229,025         1,062,461          166,564               15.68
 Other Receivables
  Related Parties                                                       56,538          35,960             20,578              57.22
  Third Parties                                                         49,331          67,602           (18,271)            (27.03)
 Inventories                                                        1,519,549         1,447,229            72,320               5.00
 Right of Return Assets                                                 16,426          12,657              3,769              29.78
 Advance to Suppliers – Third Parties                                    7,734           7,822                (88)             (1.13)
 Prepaid Expenses                                                       58,004          21,416             36,588            170.84
 Prepaid Taxes – Current Portion                                        20,069           1,533             18,536          1,209.13
 Total Current Assets                                               8,957,425        8,716,715          240,710                 2.76




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                                                                                            (in millions Rupiah, unless otherwise stated)

                                                                                                       Increase (Decrease)
                               Description                           2023            2022
                                                                                                   Million IDR              (%)
 Non-Current Assets
 Prepaid Taxes – Non-Current Portion                                   29,432                  0        29,432            100.00
 Investment Properties                                                290,113         285,986             4,127              1.44
 Fixed Assets, Net                                                  1,659,163       1,588,086           71,077               4.48
 Right-of-Use Assets                                                   95,252         132,190          (36,938)           (27.94)
 Intangible Assets                                                     25,808          23,369             2,439             10.44
 Investment in Joint Venture                                           17,298          16,400               898              5.48
 Deferred Tax Assets                                                   43,878           5,547           38,331            691.02
 Other Non-Current Assets                                              48,618          23,829           24,789            104.03
 Total Non-Current Assets                                           2,209,562      2,075,407          134,155                6.46
 Total Assets                                                      11,166,987     10,792,122          374,865                3.47


Total Assets
Total assets in 2023 reached IDR11,166.99 billion, an increase of 3.47% compared to IDR10,792.12 billion in 2022. This was
mainly influenced by increase in current and non-current assets.

Current Assets
Current assets in 2023 reached IDR8,957.43 billion, an increase of 2.76% compared to IDR8,716.72 billion in 2022. This was
mainly influenced by increase in the Company’s investments, both in the form of short-term investments and mutual funds.
In addition, cash and cash equivalents as well as third-party trade receivables also increased compared to the previous year.

Non-Current Assets
Non-current assets in 2023 reached IDR2,209.56 billion, an increase of 6.46% compared to IDR2,075.41 billion in 2022. This was
mainly influenced by increase in fixed assets, net, as well as in deferred tax assets.

LIABILITIES
                                                                                            (in millions Rupiah, unless otherwise stated)

                                                                                                       Increase (Decrease)
                               Description                           2023            2022
                                                                                                   Million IDR              (%)
 Current Liabilities
 Bank Loans                                                            5,222           7,229            (2,007)            (27.76)
 Trade Payables
   Related Parties                                                   279,321        243,304             36,017               14.80
   Third Parties                                                     371,337        330,613             40,724               12.32
 Other Payables
   Related Parties                                                       121             75                  46              61.33
   Third Parties                                                      30,450          12,824            17,626             137.45
 Unearned Revenue
   Related Parties                                                     1,802           1,840                (38)             (2.07)
   Third Parties                                                         362            185                 177              95.68
 Accrued Expenses                                                    301,835        257,448             44,387               17.24
 Short-term Employee Benefits                                         97,052          72,255            24,797               34.32
 Taxes Payables                                                       52,584        112,399            (59,815)            (53.22)
 Customer Guarantee                                                    2,100           3,100            (1,000)            (32.26)
 Provision for Sales Return                                           21,979          16,494              5,485              33.25
 Lease Liabilities - Current Portion                                  10,965          50,397           (39,432)            (78.24)
 Total Current Liabilities                                         1,175,130       1,108,163            66,967                6.04




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                                                                                              (in millions Rupiah, unless otherwise stated)

                                                                                                         Increase (Decrease)
                              Description                             2023             2022
                                                                                                     Million IDR              (%)
 Non-Current Liabilities
 Post-employment Benefits Liability                                    54,643           47,588              7,055              14.83
 Deferred Tax Liabilities                                                    0          38,350           (38,350)           (100.00)
 Lease Liabilities - Non-Current Portion                               15,725           23,136            (7,411)            (32.03)
 Total Non-Current Liabilities                                         70,368          109,074           (38,706)            (35.49)
 Total Liabilities                                                  1,245,498        1,217,237            28,261                2.32


Total Liabilities
Total liabilities in 2023 reached IDR1,245.50 billion, an increase of 2.32% compared to IDR1,217.24 billion in 2022. This was
mainly influenced by increase in current liabilities.

Current Liabilities
Current liabilities in 2023 reached IDR1,175.13 billion, an increase of 6.04% compared to IDR1,108.16 billion in 2022. This was
mainly influenced by increase in trade payables, both of related parties and third parties, as well as accrued expenses and
short-term employee benefits.

Non-Current Liabilities
Non-current liabilities in 2023 reached IDR70.37 billion, a decrease of 35.49% compared to IDR109.07 billion in 2022. This was
mainly influenced by decrease in deferred tax liabilities, net, as well as in lease liabilities non-current portion.

EQUITY
                                                                                        (in millions Rupiah, unless otherwise stated)
                                                                                                         Increase (Decrease)
                              Description                             2023             2022
                                                                                                     Million IDR              (%)
 Equity Attributable to the Owners of the Parent
 Share Capital                                                        619,536          619,536                   0                  0
 Additional Paid-in Capital                                         7,793,218         7,793,218                  0                  0
 Treasury Shares                                                      (16,369)                 0         (16,369)           (100.00)
 Revaluation Surplus of Fixed Assets                                  229,406          226,494              2,912               1.29
 Changes in Fair Value of Investment in Government Bonds              (56,408)        (138,276)          (81,868)            (59.21)
 Share of Other Comprehensive Income of Joint Venture                      85                 85                 0                  0
 Remeasurement Gain on Post-Employment Benefits Liability               9,921           13,259            (3,338)            (25.18)
 Retained Earnings
   Appropriated                                                       124,000          124,000                   0                  0
   Unappropriated                                                   1,210,978          931,790           279,188               29.96
 Total                                                              9,914,367        9,570,106          344,261                 3.60
 Non-controlling Interests                                              7,122             4,779             2,343              49.03
 Total Equity                                                       9,921,489        9,574,885          346,604                 3.62


Total equity in 2023 reached IDR9,921.49 billion, an increase of 3.62% compared to IDR9,574.89 billion in 2022. This was mainly
influenced by the increase in profit for the year of IDR1,643.10 billion.




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Consolidated Statement of Profit or Loss and Other Comprehensive Income
                                                                                              (in millions Rupiah, unless otherwise stated)

                                                                                                         Increase (Decrease)
                               Description                              2023           2022
                                                                                                     Million IDR              (%)
 Net Revenues                                                          7,016,882      6,694,171          322,711                4.82
 Cost of Goods Sold                                                   (3,833,546)    (3,976,771)       (143,225)              (3.60)
 Gross Profit                                                          3,183,336      2,717,400          465,936              17.15
 Selling Expenses                                                     (1,240,237)    (1,027,025)         213,212              20.76
 General and Administrative Expenses                                   (226,090)       (214,622)          11,468                5.34
 Finance Income                                                          286,259        293,722           (7,463)             (2.54)
 Finance Costs                                                            (4,077)        (6,463)          (2,386)            (36.92)
 Share of Profit/(Loss) of a Joint Venture                                   898         (1,426)            2,324            162.97
 Other Income/(Expenses), Net                                             (7,946)       (16,339)          (8,393)            (51.37)
 Profit Before Income Tax Expense                                      1,992,143      1,745,247          246,896              14.15
 Income Tax Expense                                                    (349,047)       (344,882)            4,165               1.21
 Profit for the Year                                                   1,643,096      1,400,365          242,731              17.33
 Total Other Comprehensive Income/(Loss), Net                             81,403       (127,454)         208,857             163.87
 Total Comprehensive Income for the Year                               1,724,499      1,272,911          451,588              35.48
 Profit for the Year Attributable to:
   Owners of the Parent                                                1,642,166      1,400,561          241,605              17.25
   Non-controlling Interests                                                 930           (196)            1,126            574.49
 Total Comprehensive Income for the Year Attributable to:
   Owners of the Parent                                                1,723,608      1,273,081          450,527              35.39
   Non-controlling Interests                                                 891           (170)            1,061            624.12
 Basic and Diluted Earnings per Share Attributable to the Owners of
                                                                           26.51          22.61              3.90             17.25
 the Parent (Full Rupiah)


Net Revenues
Net revenue in 2023 reached IDR7,016.88 billion, an increase of 4.82% compared to IDR6,694.17 billion in 2022. In facing
weakened demand in paint market, our strategy of expanding product range by leveraging our brands that have been well
recognized in the market has proven successful in maintaining sales growth. Throughout 2023, we only made price adjustments
for certain paint categories, unlike in 2022 which saw multiple price adjustments for almost all categories.

Cost of Goods Sold
Cost of goods sold in 2023 reached IDR3,833.55 billion, a decrease of 3.60% compared to IDR3,976.77 billion in 2022. Throughout
2023, prices of several raw materials declined, resulting in a decrease in cost of production. As for trading goods, there were no
price adjustments from suppliers throughout 2023, resulting in relatively stable cost of goods purchased.

Gross Profit
Gross profit in 2023 reached IDR3,183.34 billion, an increase of 17.15% compared to IDR 2,717.40 billion in 2022. This was
mainly influenced by the decrease in cost of goods sold, in line with declining raw material prices, so that the gross margin in
2023 increased to 45.37% compared to 40.59% in 2022.

Profit Before Income Tax Expense
Profit before income tax expense in 2023 reached IDR1,992.14 billion, an increase of 14.15% compared to IDR1,745.25 billion in
2022. This was mainly influenced by improved gross profit and measured growth in operating costs, reflected by an increase in
operating margin to 24.47% compared to 22.05% in 2022.




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Profit for the Year
Profit for the year in 2023 reached IDR1,643.10 billion, an increase of 17.33% compared to IDR1,400.37 billion in 2022. This was
mainly influenced by declining cost of goods sold, maintained operating expenses, and stable income outside of business,
particularly interest income. The profit margin for the year in 2023 improved, reaching 23.42% compared to 20.92% in 2022.

Total Other Comprehensive Income/(Loss), Net
In 2023, we managed to record a total other comprehensive income, net, of IDR81.40 billion, an increase of 163.87% compared
to 2022 which recorded other comprehensive loss, net, of IDR127.45 billion. This was mainly influenced by an increase in the
changes in fair value of investments in government bonds.

Total Comprehensive Income for the Year
Total comprehensive income for the year in 2023 reached IDR1,724.50 billion, an increase of 35.48% compared to IDR1,272.91
billion in 2022. This was mainly influenced by the increase in profit for the year and other comprehensive income, net.



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

                                                                                                              Increase (Decrease)
                              Description                                      2023          2022
                                                                                                           Million IDR             (%)
 Net Cash Flows Generated from Operating Activities                           1,585,535     1,461,499           124,036              8.49
 Net Cash Flows (Used in)/Provided from Investing Activities                 (1,082,896)      559,932       (1,642,828)          (293.40)
 Net Cash Flows Used in Financing Activities                                 (1,440,808)   (1,146,154)          294,654             25.71
 Net (Decrease)/Increase in Cash and Cash Equivalents                         (938,169)       875,277       (1,813,446)          (207.19)
 Cash and Cash Equivalents and Bank Overdraft at the Beginning of the Year    2,163,491     1,288,214           875,277             67.94
 Cash, Cash Equivalents, and Bank Overdraft at End of Year                    1,225,322     2,163,491         (938,169)           (43.36)


Net Cash Flows Generated from Operating Activities
Net cash generated from operations in 2023 reached IDR1,585.54 billion, an increase of 8.49% compared to IDR1,461.50 billion
in 2022. This was mainly influenced by an increase in cash from operations, mainly cash received from customers.

Net Cash Flows (Used in)/Provided from Investing Activities
Net cash used by the Company from investments in 2023 reached IDR1,082.90 billion, a decrease of 293.40% compared to net
cash provided from in 2022 of IDR559.93 billion. This was mainly influenced by the placement of funds in deposits amounting
to IDR1,740.00 billion, as well as the addition of Government Bonds amounting to IDR196.30 billion.

Net Cash Flows Used in Financing Activities
Net cash used in our financing activities in 2023 reached IDR1,440.81 billion, an increase of 25.71% compared to
IDR1,146.15 billion in 2022. This was mainly influenced by dividend payments of IDR1,362.98 billion in 2023 and
IDR1,115.16 billion in 2022, treasury shares acquisition of IDR16.37 billion, and lease liabilities payment of IDR58.84 billion.



Solvency

We always maintain our commitment to fulfill our liabilities regarding creditors’ rights. This commitment is demonstrated
by timely repayment of maturing debts to creditors. We continuously uphold this commitment to ensure our operational
continuity as well as to maintain good relations with creditors and suppliers. Therefore, we continue to manage our liquidity
level at an optimal level by monitoring the maturity of our loans. In addition, we ensure that our ability to fulfill all liabilities is
maintained by paying attention to liquidity ratios and solvency ratios. Information regarding the performance of these ratios
over the past 2 years is described below:




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                                                                                                                                       (in X)

                                      Description                                             2023                        2022
 Liquidity Ratio
 Ratio of Total Current Assets to Total Current Liabilities                                    7.62                        7.87
 Solvency Ratio
 Ratio of Total Non-Current Liabilities to Total Equity                                        0.01                        0.01
 Ratio of Total Liabilities to Total Equity                                                    0.13                        0.13
 Ratio of Total Liabilities to Total Assets                                                    0.11                        0.11


Liquidity Ratio
The liquidity ratio indicates our ability to meet current liabilities as measured by the current ratio by comparing current assets
to current liabilities. Higher liquidity ratio indicates our ability to fulfill our current liabilities as they mature. In 2023, the current
ratio decreased from 7.87X to 7.62X. This was mainly influenced by increase in current liabilities. Nevertheless, our ability to
fulfill current liabilities is still in good standing.

Solvency Ratio
Solvency ratio indicates our ability to meet all liabilities, both current and non-current. Lower solvency ratio indicates an
improvement in our ability to settle all of our liabilities. In 2023, our solvency ratios, measured by comparing total noncurrent
liabilities to total equity, total liabilities to total equity, and total liabilities to total assets, were 0.01X, 0.13X, and 0.11X,
respectively, which are the same as the previous year.



Collectability of Account Receivables

Our ability to collect all of our receivables is reflected by collectability of account receivables. In measuring the same, we use
the average collection period approach that is calculated by dividing trade receivables by net revenue per day (calculated from
net revenue divided by 365 days), as well as average accounts receivable turnover by dividing net revenue with the balance of
accounts receivable. Information regarding our collectability of account receivables over the past 2 years is described below:

                                      Description                                             2023                        2022
 Receivables Turnover Ratio (X)                                                                5.64                        6.23
 Average Collection Period (days)                                                                65                          59


In 2023, our collectibility of receivables based on the receivables turnover ratio was recorded at 5.64X, a decrease compared
to 6.23X in 2022, therefore the average collection period of our receivables increased to 65 days, compared to 59 days in 2022.
This was mainly influenced by general economic situation which impacted customers’ ability for timely payment. However, we
believe that the increase in the average collection time of receivables by 6 days does not significantly affect our operations.



Capital Structure

Policy and Basis for Determining Capital Structure
Management’s policy on capital structure is based on ensuring that we are able to maintain healthy capital ratios in order to
support business continuity and maximize value for Shareholders. In addition, capital structure management policy is expected to
maintain a healthy financial condition to fund short-term and long-term capital needs, including loan repayment. We manage
and adjust our capital structure based on changes in economic conditions. This may involve adjusting dividend payments to
Shareholders, determining the establishment of reserve funds, issuing new shares or seeking funding through loans.




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Capital Structure
Information regarding our capital structure over the past 2 years is described below:

                                                                                                  (in millions Rupiah, unless otherwise stated)

                                                                                                           Kenaikan (Penurunan)
                                 Description                              2023             2022
                                                                                                            Juta Rp               (%)
 Total Liabilities                                                       1,245,498       1,217,237            28,261               2.32
 Less: Cash and Cash Equivalents                                         1,230,544       2,170,720         (940,176)            (43.31)
 Net Payables (Cash and Cash Equivalents Surplus)                          14,954         (953,483)          968,437            101.57
 Total Equity                                                            9,921,489       9,574,885           346,604               3.62
 Net Debt to Equity Ratio (%)                                                 0.15            N/A*               0.15           100.00

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




Capital Goods Investment

Our business development over time is inseparable from the policy of continuous capital goods investment (capital
expenditure) in accordance with our needs. Capital goods investment itself is an activity of funds expenditure used to acquire
a number of assets or investments to ensure the realization of our development projects and support the strengthening of
business in the future.

Investment Type and Value
We made capital goods investment in fixed assets. The investment value realized in 2023 reached IDR215.72 billion, an increase
of 12.65% compared to IDR191.49 billion in 2022. This investment includes construction of a new manufacturing facility in
Cirebon with an area of 11 hectares and a manufacturing capacity of 225,000 tons per year, projected for completion and
operation in 2025. Details of our capital goods investment in the last 2 years are described below:

                                                                                                  (in millions Rupiah, unless otherwise stated)

                                                                                                             Increase (Decrease)
                                 Description                              2023             2022
                                                                                                         Million IDR              (%)
 Direct Acquisition
 Building and Infrastructure                                               76,652          17,320            59,322              342.56
 Machinery and Equipment                                                   26,111          57,844           (31,733)             (54.86)
 Tinting Machine                                                           11,043           4,808             6,235              129.68
 Installation                                                               2,761           3,158             (397)              (12.57)
 Vehicles                                                                  62,221          65,539            (3,318)             (5.06)
 IT Infrastructure and Office Equipment                                    36,934          42,821            (5,887)             (13.75)
 Total                                                                   215,723         191,490             24,233              12.65



Material Commitments related to Capital Goods Investment

Throughout 2023, we did not have any material commitments related to capital goods investment, so we have not presented
information on the name of the counterparty, the purpose of the commitments, the expected source of funds to fulfill the
commitments, the currency in which the commitment is denominated, and the measures we plan to hedge the risk of the
related foreign currency position.




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Realization on Use of Proceeds from Public Offering

Reports on the realization of the use of proceeds from our public offering as of December 31, 2023 is described below:

                                                                                                                                                                        (in millions Rupiah, unless otherwise stated)

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

                                                                          The Company       2,980,000     702,000      550,000      4,232,000 2,409,413        76,898          550,000     3,036,311      1,195,689
Initial Public   November 30,
                                  5,766,000     119,356       5,646,644
Offering         2021                                                     PT Tirtakencana
                                                                                             950,000       85,000      380,000      1,415,000    950,000       85,000          380,000     1,415,000               0
                                                                          Tatawarna




Dividend Policy and Distribution

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

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



Dividend Distribution
Pursuant to the resolutions of the Annual GMS on April 13, 2023, the Shareholders approved the distribution of final dividend
for the financial year of 2022 in the amount of IDR21.- per share or a total of IDR1,301,024,667,600.-, with the condition that
such final dividend shall be setoff with the interim dividend for the financial year of 2022 in the amount of IDR10.- per share or
a total of IDR619,535,556,000.- that had been paid by the Company to the Shareholders on December 6, 2022, such that the
remaining final dividend for the financial year 2022 payable on May 9, 2023 by the Company was IDR11.- per share or a total of
IDR681,489,111,600.-. Information regarding our dividend distribution over the past 2 years is described below:

                                                                                                                                                     (in millions Rupiah, unless otherwise stated)

                                                 Description                                                                                  2023                                         2022
 Declared Dividend
 Final Dividend                                                                                                                                 N/A*                                    681,489
 Interim Dividends                                                                                                                       681,489                                        619,536
 Total                                                                                                                                   681,489                                     1,301,025
 Dividend per Share (Full Rupiah)                                                                                                               11.00                                      21.00
 Dividend Payout Ratio (%)                                                                                                                      N/A*                                       92.88




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                                                                                                                  (in millions Rupiah, unless otherwise stated)

                                       Description                                                         2023                            2022
 Implemented Distribution of Dividend
 Final Dividend                                                                                            681,489                        495,628
 Interim Dividends                                                                                         681,489                        619,536
 Total                                                                                                  1,362,978                       1,115,164

* The value of Final dividends and dividend payout ratio for 2023 is not yet available pending the resolution of the Annual GMS for the financial year of 2023
  which will be convened in 2024.




Material Information Concerning Investment, Expansion, Divestment, Merger/Consolidation,
Acquisition, and/or Debt/Capital Restructuring

Based on Notarial Deed No. 11 dated April 13, 2023, we have subscribed 29,480 shares with a nominal value of IDR100,000.- or a
total of IDR2,948,000,000.- for the increase in issued and paid-up capital by PT Multipro Paint Indonesia (“MPI”), our Subsidiary.
With this, we continue to own 67.00% of the shares in MPI.

Other than the above capital increase, in 2023, neither us nor any of our Subsidiaries conducted any other investment activities,
expansion, divestment, merger, acquisition, and/or debt/capital restructuring.



Material Transactions Containing Conflicts of Interest or Transactions with Related Parties

Information on Material Transactions Containing Conflict of Interest
Throughout 2023, we did not conduct any transactions with conflicts of interest.

Information on Related Party Transactions
We conducted material transactions with related parties in accordance with the PSAK. All transactions with related parties are
aimed to develop our business. Further information on transactions with related parties conducted by us throughout 2023 is
described below:

                Related Parties                                Nature of Relationship                                 Type of Transaction
                                                                                                             Sales of goods, purchase of tools and
                                                      Have the same key management personnel
 PT Avia Avian Industri Pipa                                                                                 building materials, office building rent
                                                          and under common control entity.
                                                                                                             income and expense reimbursement.
                                                                                                              Sales of goods, purchase of tools and
                                                      Have the same key management personnel
 PT Mitra Mulia Makmur                                                                                       building materials and factory building
                                                          and under common control entity.
                                                                                                                          rent income.
                                                      Have the same key management personnel
 PT Sarana Depo Kencana                                                                                         Sales of goods and building rent.
                                                          and under common control entity.
                                                                                                             Sales of goods, purchase of tools and
                                                      Have the same key management personnel
 PT Wahana Lentera Raya                                                                                      building materials, office building rent
                                                          and under common control entity.
                                                                                                             income and expense reimbursement.
                                                                                                                Sales of goods, purchase of tools
                                                      Have the same key management personnel
 PT Kencana Lintasindo Internasional                                                                           and building materials and expense
                                                          and under common control entity.
                                                                                                                         reimbursement.
                                                      Have the same key management personnel
 PT Kasakata Kimia                                                                                                 Office building rent income.
                                                          and under common control entity.
                                                      Have the same key management personnel               Sales of goods and purchases of tools and
 PT Panca Kalsiumindo Perkasa
                                                          and under common control entity.                             building materials.
                                                      Have the same key management personnel                     Sales and purchases of tools and
 PT Megadepo Indonesia
                                                          and under common control entity.                              building materials.
                                                      Have the same key management personnel                     Sales and purchases of tools and
 PT Caturkarda Depo Bangunan Tbk
                                                          and under common control entity.                              building materials.




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               Related Parties                       Nature of Relationship                       Type of Transaction
                                           Have the same key management personnel
 PT Bira Industri Rejeki Agung                                                              Factory building rent income.
                                               and under common control entity.
 PT Wita Indo Talisayan                             Under common control entity.             Office building rent income.
 PT Umaq Tukung Mandiri Utama                       Under common control entity.             Office building rent income.
 PT Wita Internasional Bisnis Artisan               Under common control entity.             Office building rent income.
 PT Sarana Daya Hutama                              Under common control entity.             Office building rent income.
                                                                                          Office building rental income and
 PT Bangun Bersama Solusindo                         Investment in joint venture.
                                                                                           purchases of building materials.
                                                                                            Salaries and other short-term
 Dewan Komisaris dan Direksi                        Key management personnel.
                                                                                               compensation benefits.


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

                                                                                            (in millions Rupiah, unless otherwise stated)

                                                                                          Percentage of Total Assets
    Related Party Balance in                                                                        (%)
                                           2023                       2022
             Assets
                                                                                          2023                        2022
 Trade Receivables                         14,018                     11,192              0.13                         0.10
 Other Receivables                         56,538                     35,960              0.51                         0.33
 Prepaid Expenses                          46,623                           0             0.42                             0
 Total                                    117,179                    47,152               1.05                         0.44

                                                                                            (in millions Rupiah, unless otherwise stated)

                                                                                        Percentage of Total Liabilities
    Related Party Balance in                                                                        (%)
                                           2023                       2022
           Liabilities
                                                                                          2023                        2022
 Trade Payables                           279,321                     243,304             22.43                        19.99
 Other Payables                               121                          75              0.01                         0.01
 Unearned Revenue                            1,802                      1,840              0.14                         0.15
 Lease Liabilities                           4,186                     53,889              0.34                         4.43
 Total                                    285,430                    299,108              22.92                       24.57

                                                                                            (in millions Rupiah, unless otherwise stated)

                                                                                         Percentage of Net Revenue
    Related Party Balance in                                                                        (%)
                                           2023                       2022
          Net Revenue
                                                                                          2023                        2022
 Revenue                                   84,322                    45,374               1.20                         0.68

                                                                                            (in millions Rupiah, unless otherwise stated)

                                                                                      Percentage of Cost of Goods Sold
    Related Party Balance in                                                                        (%)
                                           2023                       2022
      Cost of Goods Sold
                                                                                          2023                        2022
 Inventory Purchase                      1,541,498                  1,441,114            40.21                         36.24

                                                                                            (in millions Rupiah, unless otherwise stated)

                                                                                      Percentage to Total Other Income
    Related Party Balance in                                                                         (%)
                                           2023                       2022
         Other Income
                                                                                          2023                        2022
 Office and Plant Building Rental
                                           3,993                      3,898              50.26                         23.86
 Income




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

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

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

Related Party Transactions that Generate Business Income and are Routinely, Repeatedly, and/or
Continuously Performed
Disclosure of related party transactions that are business activities performed in order to generate business income and
performed routinely, repeatedly, and/or continuously, we have disclosed them as descriptions on realization of balances and
related party transactions above in line with the information contained in Note No. 6 of the audited Financial Statements for
the financial year of 2023.

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



Comparison of Target and Realization in 2023

Information related to the business growth target and realization that we aimed to achieve in 2023 is described below:

                                                                                                                                   Achievement
                      Description                                 Unit                 2023 Target              2023 Realization
                                                                                                                                       (%)
     Total Production                                          Metric Tons                  181,245                  180,540           99.61
     Net Revenue                                             Million Rupiah             7,095,821   1)
                                                                                                                    7,016,882          98.89
     Profit for the Year                                     Million Rupiah               1,610,420                 1,643,096         102.03
     Capital Structure
       Net Debt to Equity Ratio                                     %                        <10.00                      0.15         100.00
1)
     In the third quarter of 2023, the Company announced an adjustment to its 2023 revenue target to ± 6.00%.




Business Prospects

As we head into 2024, we are optimistic about our business prospects. This positive projection is underpinned by various
aspects, including macroeconomic developments and opportunities in national paint industry. In the macroeconomic
context, key indicators such as solid economic growth, financial sector stability, and government policies that support
business growth provide a strong foundation for various industrial sectors. This is further corroborated by Bank Indonesia’s
analysis, which projects Indonesia’s economic growth in 2024 to be in the range of 4.7% - 5.5%. This growth is driven by
the performance in consumption, both private and government, increasing investment in line with strong confidence in
public consumption, positive impact of the election, and sustainability of development of National Strategic Projects (Proyek
Strategis Nasional or “PSN”).




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As for opportunities in the national paint industry, we see that the market potential is still wide open due to Indonesia’s
large population, projected increase in GDP per capita, and relatively low paint consumption rate compared to peers. To
fully capitalize on this opportunity, we have invested in the construction of a new plant in Cirebon. The plant, spanning 11
hectares with a manufacturing capacity of up to 225,000 tons per year, is projected to be completed and operational in 2025.
This move is expected to substantially increase manufacturing capacity, meet growing market needs, and create new jobs.

Nevertheless, competition among paint industry players, particularly against multinational companies that have better
access to capital and technology, needs to be anticipated. To mitigate this challenge, we continue to focus on improving our
internal capacity, especially on our extensive distribution network that covers various regions throughout Indonesia, so that
it can become one of the cornerstones to achieve positive business prospects in the coming period.

Source: Monetary Policy Overview (Tinjauan Kebijakan Moneter) December 2023 edition, Bank Indonesia.


Business Development Strategy

In light of the projected economic growth in 2024, we plan to execute our business development strategy through several
policies, as described below:
1. Continuing to develop distribution centers;
2. Completing product portfolios in each category and price point to meet market needs;
3. Improving customer service with new approaches, such as express delivery;
4. Increasing customer loyalty with programs designed to provide added value and positive customer experiences, such as
     Avian Brands Priority Customer;
5. Strengthening innovation and development, both for existing products (cost saving) and new products; and
6. Constantly upgrading manufacturing facilities and other supporting facilities, including the ERP System in use with
     appropriate new technology to improve efficiency.



2024 Projection

We are targeting double-digit sales growth in 2024. Architectural solutions segment remains our main pillar of growth,
contributing to 80% of total sales. Production will automatically grow by double digits in line with sales growth. In terms of
profitability, we will maintain our margins through growth and operational efficiency efforts. While in terms of capital structure,
throughout 2024, we will continue to operate based on our own capital, or in other words, without loan capital. As for the
dividend aspect, we will maintain our existing dividend policy of distributing at least 50% of our net profit as dividends.



Changes in Accounting Policies

New standards, amendments, revisions and interpretations that have been issued and that shall be effective for financial years
commencing on or after January 1, 2023 are described below:

                                      ISAK/Amendments to PSAK                                           Impacts on the Company
 Amendment to PSAK No. 1, “Presentation Financial Statements”.
                                                                                                        Does not result in substantial
 Amendment to PSAK No. 16, “Fixed Assets” regarding Proceeds before Intended Use.                         changes to the Company’s
 Amendment to PSAK No. 25, “Accounting Policies, Changes in Accounting Estimates and Errors -            accounting policies and no
 Definition of Accounting Estimates”.                                                                  material effects on the amounts
                                                                                                       reported for the current or prior
 Amendment to PSAK No. 46, “Income Taxes - Deferred Tax related to Assets and Liabilities Arising               financial years.
 from a Single Transaction”.


Reason for Change in Accounting Policy
The financial accounting standards are adopted to comply with the PSAK that is in effect in the current year.




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Changes in Laws and Regulations with Significant Impacts on the Company

Laws and regulations that were amended and/or recently enacted by regulators throughout 2023 that significantly affect us
are described below:

             Regulations                               Impacts on the Company                               Adjustments Made
 Circular Letter of the Minister of Industry 1. Communicating exhaust emission control;             Periodically reporting every Thursday
 No. 2 of 2023 concerning Reporting of 2. Ensuring fulfillment of exhaust emission parameters       of every week to the National Industrial
 Industrial Sector Exhaust Gas Emission         and ambient air in accordance with the provisions   Information System portal (www.siinas.
 Control in the Special Capital Region of       of laws and regulations; and                        kemenperin.go.id).
 Jakarta, West Java Province, and Banten 3. Periodically submitting the Exhaust Gas Emission
 Province.                                      Control Report once every 1 week, on Thursday,
                                                through the National Industrial Information
                                                System portal (www.siinas.kemenperin.go.id)
                                                in accordance with the reporting procedures as
                                                stated in the Annex which forms an integral part
                                                of this Circular Letter.



Material Information After the Financial Statements Date

There is no material information that occurred in the Company following the publication date of the Financial Statements.



Business Continuity Information

Matters That Have a Significant Influence on Business Continuity
Throughout 2023, there were no negative events that had major impacts on our operational activities, both internal and
external. This is inseparable from the better risk management that has been performed by us.

Management Assessment to Manage Potentially Significant Influences
Supported by the business plan that has been presented in the business development strategy for 2023, the management
has assessed our ability to continue business activities in the future. The management believes that there are no material
uncertainties that may affect our ability to continue business activities.

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




                                                                     2023 Annual Report - PT Avia Avian Tbk                    95
Page 98
Good Corporate
Governance




“As part of the Company’s efforts
to create a healthy and sustainable
business climate, the commitment to
implementing Good Corporate
Governance principles is consistently
realized by the Company through the
implementation of best practices in
line with the Company’s needs,
applicable regulations, and the latest
developments in best practices in
similar industries.”




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2023 Annual Report - PT Avia Avian Tbk   97
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Commitment to Implementing Good
Corporate Governance
The Company is fully committed to consistently and comprehensively implementing Good Corporate Governance (“GCG”)
principles in all day-to-day operations and each aspect of its business, in order to improve the Company’s performance and
value for sustainable growth. The Company also believes that GCG implementation can improve decision-making quality and
healthy conduct of business activities while maintaining the trust of Shareholders and other stakeholders. In addition, the
Company continues to improve its governance systems and practices from time to time in accordance with the needs and
developments of applicable and relevant best governance practices, in line with the growing business risks and challenges that
the Company may face amid its increasingly rapid growth.

Accordingly, the Company is fully committed to implementing the 4 GCG pillars as a foundation for accountable business
management and creating sustainable added value for the benefit of Shareholders, the wider public, and other stakeholders.
The four pillars of GCG were first introduced in the 2021 PUGKI and represent the latest development of the basic values of
TARIF (Transparency, Accountability, Responsibility, Independence, and Fairness). Further information is described as follows:



                 ETHICAL CONDUCT
                 In carrying out each business activity, the Company always emphasizes honesty, treats all parties with respect, fulfills commitments,
                 and consistently builds and maintains moral values and trust. Furthermore, the Company at all times takes into account the interests of
                 Shareholders and other stakeholders on the basis of fairness and equality, as well as ensuring independence in management to ensure
                 that no organ of the Company dominates each other and that no other party can intervene.




                 ACCOUNTABILITY
                 The Company can be held accountable for its performance transparently and reasonably. Therefore, the Company’s management is always
                 carried out in a correct and calculated manner, in accordance with the Company’s interests while taking into account the Shareholders’ and
                 other stakeholders’ interests. Accountability is one of the pillars that forms the main foundation for achieving sustainable performance.




                 TRANSPARENCY
                 In maintaining objectivity in business management, the Company consistently provides material and relevant information in an easily
                 accessible and understandable manner for Shareholders and other stakeholders. The Company has taken the initiative to disclose not
                 only information required by regulations but also other crucial information that supports the decision-making processes of Shareholders,
                 creditors, and other stakeholders.




                 SUSTAINABILITY
                 The Company remains compliant with all applicable laws and regulations and is committed to carrying out its responsibilities towards
                 the community and the environment in order to contribute to the Sustainable Development Goals through cooperation with all relevant
                 stakeholders. This represents the Company’s strategic initiative to improve our quality of life in a way that is aligned with the Company’s
                 business interests and the sustainable development agenda.




Integrated Good Corporate Governance Implementation Policy

As a holding company with several Subsidiaries, the Company is also committed to implementing good corporate governance
principles consistently and comprehensively within its Subsidiaries as stipulated in the GCG Guidelines. This is aimed to ensure
that all business activities conducted by the Company and its Subsidiaries are in accordance with the prevailing laws and
regulations as well as with the best practices of GCG in similar industries.




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                                                                                             Good Corporate Governance




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

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




Structure of Good Corporate Governance
The GCG structure is an organ of the Company, consisting of both organs established in compliance with applicable laws
and regulations as well as organs established based on the Company’s internal needs in order to improve the quality of GCG
implementation. The Company’s GCG structure features key organs that have a role in supporting the Company’s management
in accordance with GCG principles. As a business entity in the form of a Limited Liability Company established and governed in
accordance with Law No. 40 of 2007 on Limited Liability Companies, the Company’s GCG structure consists of 3 main organs,
namely the General Meeting of Shareholders, the Board of Commissioners, and the Board of Directors. Each has important
roles in the implementation of GCG in accordance with their respective functions, duties, and responsibilities. In practice, the
Company’s GCG structure adheres to a two-tier system, consisting of the Board of Commissioners and the Board of Directors
with clear authorities and responsibilities in accordance with their respective functions as mandated in the laws and regulations
as well as the Articles of Association.



                                            General Meeting of Shareholders




                The Board of Commissioners                                          The Board of Directors




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




                                                               2023 Annual Report - PT Avia Avian Tbk               99
Page 102
Mechanism of Good Corporate Governance
For the Company’s GCG structure to function properly within the boundaries of each organ’s responsibilities, it is imperative to
have a governance mechanism operated by all of the Company’s organs. Each of the GCG organs holds their respective duties
and responsibilities, but still implements GCG in an integrated manner, in hope to create an organizational environment based
on accountable management. The General Meeting of Shareholders (“GMS”) is the highest authority where Shareholders can
deliberate on strategic decisions for the long-term interests of the Company. After a resolution is taken, the GMS will hand over
all authority to supervise and implement the resolution to the Board of Commissioners and the Board of Directors. The Board
of Commissioners and the Board of Directors also have their respective levels of authority in making resolutions with certain
limitations, as governed in the Company’s Articles of Association.

Based on such mechanism, the management of the Company and the implementation of the resolutions of the GMS, resolutions
of the Board of Commissioners, and resolutions of the Board of Directors will be executed by the Board of Directors. In turn, the
Board of Commissioners supervises and provides advice to ensure that the objectives of the Company as well as the resolutions
of the GMS and the Board of Commissioners are properly implemented. In performing its supervisory function, the Board of
Commissioners is assisted by the Audit Committee, the Nomination and Remuneration Committee, and the Good Corporate
Governance Committee. Meanwhile, in performing the Company’s management function, the Board of Directors is assisted by
the Related Party Transaction Committee, the Corporate Secretary, and the Internal Audit Unit. In addition, the Company also
involves external audits to conduct independent audits on the Financial Statements presentations.



General Meeting of Shareholders
The General Meeting of Shareholders (“GMS”) is an organ of the Company that has authority not otherwise granted to the
Board of Commissioners or the Board of Directors within the limit stipulated by the Limited Liability Company Law and/or the
Company’s Articles of Association.



Rights of Shareholders

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



Type of GMS

Based on the Financial Services Authority (Otoritas Jasa Keuangan or “OJK”) Regulation No. 15/POJK.04/2020 concerning the
Plan and Implementation of the General Meeting of Shareholders of Public Companies and/or the Company’s Articles of
Association, the implementation of the GMS is divided into 2, i.e.:
1. Annual GMS, namely the General Meeting of Shareholders which is convened every year no later than 6 months after the
    end of the Company’s financial year. The agenda of the Annual GMS include:
    a. Ratification of the Annual Report, descriptions of state and affairs of the Company, including Annual Financial
       Statements;




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   b. Determination of the use of net profit;
   c. Appointment of an external auditor registered with the OJK; and
   d. Other agendas proposed by the Board of Directors in the interest of the Company or proposed by one or more
       Shareholders in accordance with the provisions of the Law and the Company’s Articles of Association.
2. Extraordinary GMS, namely the General Meeting of Shareholders convened at any time as deemed necessary for the
   interests of the Company.


Authority of the GMS

The GMS has the authority to:
1. Exercise its rights to express opinions and obtain information relating to the Company from the Board of Directors and the
   Board of Commissioners to the extent that it concerns the agenda of the meeting and does not conflict with the interests
   of the Company;
2. Hold the Board of Commissioners and the Board of Directors accountable for the management of the Company;
3. Amend the Articles of Association; and
4. Appoint and dismiss the Board of Commissioners and the Board of Directors.


Procedures for Convening GMS

The procedures of convening GMS are in accordance with Law No. 40 of 2007 concerning Limited Liability Companies,
OJK Regulation No. 15/POJK.04/2020 concerning the Plan and Implementation of the General Meeting of Shareholders of
Public Companies, OJK Regulation No. 16/POJK.04/2020 concerning Implementation of the Electronic General Meeting of
Shareholders of Public Companies, and the Company’s Articles of Association.


Voting Mechanism

In any agenda of the GMS, the Chairman of the Meeting will provide an opportunity for the Shareholders to ask questions and/
or give opinions before voting takes place. Pursuant to Article 12 paragraph (13) of the Company’s Articles of Association, all
resolutions of the GMS shall be made by way of deliberation for consensus. In the event that a resolution cannot be reached by
deliberation for consensus, the resolution shall be made by voting.


Conventions of GMS in 2023

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

2023 Annual GMS

CONVENTION STAGES OF THE 2023 ANNUAL GMS

              Notification
  1           Notified the Financial Services Authority on February 27, 2023 through
              Letter No. 014/AA/CORSEC/II/2023.

              Announcement
  2           Announced on March 6, 2023 through the websites of the Company, Indonesia Stock Exchange,
              and Indonesia Central Securities Depository.

              Invitation
  3           Announced on March 21, 2023 through the websites of the Company, Indonesia Stock Exchange,
              and Indonesia Central Securities Depository.




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TAHAP PELAKSANAAN RUPS TAHUNAN 2023

               Implementation
  4            Convened on April 13, 2023 at 10:00 – 11:45 (GMT+7) in Avian Brands Building Meeting Room,
               Jl. Ahmad Yani No. 317, Surabaya, 60234, Jawa Timur, Indonesia.

               GMS Resolutions
  5            The Meeting Summary was published on April 14, 2023 on the websites of the Company,
               Indonesia Stock Exchange, and Indonesia Central Securities Depository.



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


                                                 Resolutions of the 2023 Annual GMS
                                                                Agenda 1
                                                                  Agenda
Approval of the Annual Report including Audited Consolidated Financial Statements of the Company and Supervisory Report of the
Board of Commissioners for the financial year ended on December 31, 2022, and the granting of full release and discharge (acquit et de
charge) to all members of the Board of Directors for the management actions and to all members of the Board of Commissioners for the
supervisory actions performed during the financial year ended on December 31, 2022.
                                                               Resolutions
1. To receive and approve the Annual Report for the financial year ended December 31, 2022 and ratify the Company and the Subsidiaries’
   Audited Consolidated Financial Statements for the financial year ended December 31, 2022 audited by the Public Accounting Firm of
   Tanudiredja, Wibisana, Rintis & Rekan (“a member firm of PwC global network “) with an unmodified opinion as set out in its report
   No. 00208/2.1025/AU.1/04/1737-1/1/II/2023 dated February 28, 2023; and
2. To receive and approve the Report on the Supervisory Function of the Board of Commissioners for the financial year ended December 31,
   2022 and grant full release and discharge (acquit et de charge) to all members of the Board of Directors and the Board of Commissioners
   for their management and supervisory actions during the financial year 2022 to the extent that such actions are reflected in the Company’s
   Annual Report and Financial Statements for the financial year ended December 31, 2022, with the exceptions of fraud, embezzlement, or
   other criminal acts.
        Voting Results                                                              Realization
Agree          : 60,385,375,978      Fully realized. The Company’s Annual Report and Financial Statements for the financial year ended
Abstain        : 2,277,600           December 31, 2022 have been submitted to the regulator and posted on the website, and have not
Disagree       : 500                 been amended following the GMS.


                                                                Agenda 2
                                                                  Agenda
The determination of the use of the Company’s net profit for the financial year ended December 31, 2022.
                                                               Resolutions
1. To determine that based on the Company’s Audited Consolidated Financial Statements as of December 31, 2022, the total net profit of the
   Company is IDR1,400,365,580,530.- (“2022 Net Profit”);




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                                               Resolutions of the 2023 Annual GMS
                                                              Resolutions
2. To determine the use of 2022 Net Profit as follows:
   a. IDR1,301,024,667,600.- or IDR21.- per share to be distributed as cash dividends for the financial year ended December 31, 2022 to
      Shareholders who have the right to receive cash dividends, in which the amount of cash dividends includes interim dividends, with
      the following explanation:
      1) Authorize the distribution of interim dividends for the financial year 2022 from the 2022 Net Profit in the amount of IDR10.- per
         share or a total of IDR619,535,556,000.- and the payment has been made on December 6, 2022; and
      2) Distribute cash dividends for the financial year 2022 from the 2022 Net Profit in the amount of IDR11.- per share or a total of
         IDR681,489,111,600.-;
      To the holders/owners of 61,953,555,600 of the Company’s shares, with due observance of the prevailing laws and regulations
      including the prevailing tax regulations;
      The following terms and conditions apply to the dividend payment:
      a) the remaining dividends for the financial year 2022 shall be paid for any share issued by the Company that is registered in the
         Company’s Shareholders List on the recording date determined by the Board of Directors;
      b) for the payment of the remaining dividends for the financial year 2022, the Board of Directors shall withhold dividend tax in
         accordance with applicable tax regulations; and
      c) the Board of Directors is authorized to determine matters relating to the payment of the remaining dividends for the financial
         year 2022, including (but not limited to):
         (1) to determine the record date as referred to in letter a in determining the Company’s shareholders who are entitled to receive
             payment of the remaining dividends for the financial year 2022; and
         (2) to determine the payment date of the remaining dividends for the financial year 2022 and other technical matters without
             prejudice to the regulations of the Stock Exchange where the Company’s shares are listed;
   b. the remaining portion of 2022 Net Profit is recorded as unappropriated retained earnings.
3. To approve the granting of full authority and power to the Board of Directors with substitution rights to take all necessary actions in
   connection with the resolutions, one and another without any exception.
       Voting Results                                                          Realization
Agree         : 60,169,648,401
                                  Fully realized. The cash dividend was distributed on May 9, 2023 to the Shareholders of the Company
Abstain       : 2,277,600
                                  whose names are recorded in the Company’s Shareholder List on May 3, 2023.
Disagree      : 215,728,077




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                                               Resolutions of the 2023 Annual GMS

                                                                Agenda 3
                                                                 Agenda
The appointment of a Registered Public Accountant and/or Registered Public Accounting Firm to audit the Company’s Consolidated
Financial Statements for the financial year ended December 31, 2023.
                                                               Resolutions
1. To delegate the authority to the Board of Commissioners to appoint a Public Accountant and/or Registered Public Accounting Firm in
   Indonesia to conduct an Audit on the Company’s Consolidated Financial Statements for the financial year ended December 31, 2023,
   taking into account the recommendations of the Audit Committee, provided that such Public Accountant and/or Public Accounting
   Firm is registered with the Financial Services Authority, has a good reputation, and has no conflict of interest with the Company and its
   affiliates; and
2. To grant the authority to the Board of Directors to determine the honorarium of the Public Accountant and/or Registered Public
   Accounting Firm and other requirements in connection with the appointment.
        Voting Results                                                           Realization
Agree         : 59,105,046,971    Fully realized. The Board of Commissioners has appointed Public Accounting Firm (Kantor Akuntan
Abstain       : 2,277,600         Publik or “KAP”) Tanudiredja, Wibisana, Rintis & Rekan (a member firm of PwC global network) to audit
Disagree      : 1,280,329,507     the Company’s Consolidated Financial Statements for the financial year ended December 31, 2023
                                  based on the Minutes of the Board of Commissioners Meeting No. 005/AA/SK/KOM/VIII/2023 dated
                                  August 30, 2023.


                                                                Agenda 4
                                                                 Agenda
The determination of salary/honorarium and other benefits for members of the Board of Commissioners and the Board of Directors for
the year 2023.
                                                               Resolutions
To grant power and authority to the Board of Commissioners:
1. To determine the salary/honorarium and other benefits for members of the Board of Commissioners and the Board of Directors for the
   year 2023 through the Board of Commissioners Meeting; and
2. To determine the distribution amount among members of the Board of Commissioners and members of the Board of Directors;
by taking into account the recommendations from the Nomination and Remuneration Committee, the provisions of the Articles of
Association, and the prevailing rules and regulations.
        Voting Results                                                           Realization
Agree         : 60,117,202,701    Fully realized. The Board of Commissioners has determined the salary/honorarium and other benefits
Abstain       : 2,277,600         for members of the Board of Commissioners and the Board of Directors for the year 2023 through
Disagree      : 268,173,777       the Board of Commissioners Meeting based on the Minutes of the Board of Commissioners Meeting
                                  No. 003/AA/BAR/KOM/VII/2023 dated July 3, 2023.


                                                                Agenda 5
                                                                 Agenda
The submission of Accountability Report on the Realization of the Use of Proceeds from the Initial Public Offering.
                                                               Resolutions
The Fifth Agenda only constitutes a Report in connection with the Realization of the Use of Proceeds from the Initial Public Offering,
therefore no vote/approval from the Meeting is required.
  Hasil Pemungutan Suara                                                          Realisasi
Setuju       :-
Abstain      :-                                                                       -
Tidak Setuju : -




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Extraordinary GMS on April 13, 2023
CONVENTION STAGES OF THE EXTRAORDINARY GMS ON APRIL 13, 2023

               Notification
  1            Notified the Financial Services Authority on Februari 27, 2023 through
               Letter No. 014/AA/CORSEC/II/2023.

               Announcement
  2            Announced on March 6, 2023 through the websites of the Company, Indonesia Stock Exchange,
               and Indonesia Central Securities Depository.

               Invitation
  3            Announced on March 21, 2023 through the websites of the Company, Indonesia Stock Exchange,
               and Indonesia Central Securities Depository.

               Implementation
  4            Convened on April 13, 2023 at 12:01-12:15 (GMT+7) in Avian Brands Building Meeting Room,
               Jl. Ahmad Yani No. 317, Surabaya, 60234, Jawa Timur, Indonesia.

               GMS Resolutions
  5            The Meeting Summary was published on April 14, 2023 on the websites of the Company,
               Indonesia Stock Exchange, and Indonesia Central Securities Depository.


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


                                    Resolutions of the Extraordinary GMS on April 13, 2023
                                                                Agenda
                                                                Agenda
Approval on Amendment to Article 19 paragraph (4) of the Company’s Articles of Association concerning Work Plan, Fiscal Year and
Annual Report.
                                                              Resolutions
1. Approved the Amendment to Article 19 paragraph (4) of the Company’s Articles of Association concerning Work Plan, Fiscal Year and
   Annual Report, to be read as follows:
   Article 19
   4. The Board of Directors shall prepare an annual report and provide it in the Company’s office to be examined by Shareholders as of
      the date of the invitation of the Annual GMS, and announce the balance sheet and profit or loss statement that has been audited
      by a public accountant registered with the OJK through the Stock Exchange website, the Company’s website, and/or other media in
      accordance with laws and regulations in the field of Capital Market.
2. Approved to give Power of Attorney to the Board of Directors of the Company with the right to transfer power (right of substitution) to
   declare the change in a separate deed before a Notary, including to submit notification to the Minister of Law and Human Rights of the
   Republic of Indonesia and report to other competent authorities, register and announce it and do everything needed and required by the
   applicable laws and regulations.




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                                Resolutions of the Extraordinary GMS on April 13, 2023
       Voting Results                                                   Realization
Agree       : 60,387,603,978   Fully realized through amendments to the Articles of Association based on the deed of Minutes
Abstain     :-                 of the Extraordinary General Meeting of Shareholders No. 3 dated April 13, 2023, drawn up by
Disagree    : 500              Dr. Susanti, S.H., M.Kn., a Notary in Surabaya City.



Extraordinary GMS on December 7, 2023
CONVENTION STAGES OF THE EXTRAORDINARY GMS ON DECEMBER 7, 2023

             Notification
  1          Notified the Financial Services Authority on October 24, 2023 through
             Letter No. 089/AA/CORSEC/X/2023.

             Announcement
  2          Announced on October 31, 2023 through the websites of the Company,
             Indonesia Stock Exchange, and Indonesia Central Securities Depository.

             Disclosure of Information
  3          Announced on October 31, 2023 through the websites of the Company
             and Indonesia Stock Exchange.




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CONVENTION STAGES OF THE EXTRAORDINARY GMS ON DECEMBER 7, 2023

               Invitation
  4            Announced on November 15, 2023 through the websites of the Company,
               Indonesia Stock Exchange, and Indonesia Central Securities Depository.

               Implementation
  5            Convened on December 7, 2023 at 09:50 - 10:26 (GMT+7) in Avian Brands Building Meeting Room,
               Jl. Ahmad Yani No. 317, Surabaya, 60234, Jawa Timur, Indonesia.

               GMS Resolutions
  5            The Meeting Summary was published on December 8, 2023 on the websites of the Company
               and Indonesia Stock Exchange, and on December 9, 2023 on the website of
               Indonesia Central Securities Depository.


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


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




                                                                     2023 Annual Report - PT Avia Avian Tbk                   107
Page 110
Conventions of GMS in 2022

Throughout 2022, the Company convened 1 Annual GMS and 2 Extraordinary GMS. More information concerning the GMS
convention is described as follows:

2022 Annual GMS
CONVENTION STAGES OF THE 2022 ANNUAL GMS

               Notification
  1            Notified the Financial Services Authority on March 9, 2022 through
               Letter No. 017/AA/CORSEC/III/2022.

               Announcement
  2            Announced on March 16, 2022 through the websites of the Company, Indonesia Stock Exchange,
               and Indonesia Central Securities Depository.

               Invitation
  3            Announced on March 31, 2022 through the websites of the Company, Indonesia Stock Exchange,
               and Indonesia Central Securities Depository.

               Implementation
  4            Convened on April 22, 2022 at 10:00-11:47 (GMT+7) in Avian Brands Building Meeting Room,
               Jl. Ahmad Yani No. 317, Surabaya, 60234, Jawa Timur, Indonesia.

               GMS Resolutions
  5            The Meeting Summary was published on April 25, 2022 on the websites of the Company,
               Indonesia Stock Exchange, and Indonesia Central Securities Depository.



                                             Participants of the 2022 Annual GMS
The Shareholders        The 2022 Annual GMS was attended by 60,114,466,479 shares with valid voting rights or 97.0315% of
                        61,953,555,600 shares which constitute all of the shares issued by the Company.
The Board of            President Commissioner          Hermanto Tanoko
Commissioners
                        Independent Commissioner        Mohammad Noor Rachman Soejoeti
                                                        (attended the 2022 Annual GMS electronically via the eASY.KSEI application)
The Board of            President Director              Wijono Tanoko
Directors
                        Vice President Director         Ruslan Tanoko
                        Director                        Robert Christian Tanoko
                        Director                        Kurnia Hadi Sinanto
Independent Parties in the Convention of the 2022 Annual GMS
The Company appointed PT Bima Registra, as the Securities Administration Bureau, to count the votes and/or validate the votes and
appointed Dr. Susanti, S.H., M.Kn., a Notary in Surabaya City as the Public Notary, to verify the vote count in the 2022 Annual GMS.


                                             Resolutions of the 2022 Annual GMS
                                                             Agenda 1
                                                              Agenda
Approval of the Annual Report including Audited Consolidated Financial Statements of the Company and Supervisory Report of the
Board of Commissioners for the financial year ended on December 31, 2021, and the granting of full release and discharge (acquit et de
charge) to all members of the Board of Directors for the management actions and to all members of the Board of Commissioners for the
supervisory actions performed during the financial year ended on December 31, 2021.




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                                                Resolutions of the 2022 Annual GMS
                                                                Resolutions
1. To receive and approve the Annual Report for the financial year ended December 31, 2021 and ratify the Company and the Subsidiaries’
   Audited Consolidated Financial Statements for the financial year ended December 31, 2021 audited by the Public Accounting Firm of
   Purwantono, Sungkoro, & Surja (“a member firm of Ernst & Young Global Limited”) with an unmodified opinion as set out in its report
   No. 00232/2.1032/AU.1/04/0685-1/1/III/2022 dated March 16, 2022; and
2. To receive and approve the Report on the Supervisory Function of the Board of Commissioners for the financial year ended
   December 31, 2021 and grant full release and discharge (acquit et de charge) to all members of the Board of Directors and the Board
   of Commissioners for their management and supervisory actions during the financial year 2021 to the extent that such actions are
   reflected in the Company’s Annual Report and Financial Statements for the financial year ended December 31, 2021, with the exceptions
   of fraud, embezzlement, or other criminal acts.
        Voting Results                                                            Realization
Agree         : 60,114,466,379     Fully realized. The Company’s Annual Report and Financial Statements for the financial year ended
Abstain       :-                   December 31, 2021 have been submitted to the regulator and posted on the website, and have not
Disagree      : 100                been amended following the GMS.


                                                                 Agenda 2
                                                                   Agenda
The determination of the use of the Company’s net profit for the financial year ended December 31, 2021.
                                                                Resolutions
1. To determine that based on the Company’s Audited Consolidated Financial Statements as of December 31, 2021, the total net profit of
   the Company is IDR1,434,551,222,696.- (“2021 Net Profit”);
2. To determine the use of 2021 Net Profit as follows:
   a. IDR1,195,628,444,800.- or IDR20.55.- per share to be distributed as cash dividends for the financial year ended December 31, 2021
      to Shareholders who have the right to receive cash dividends, in which the amount of cash dividends includes interim dividends,
      with the following explanation:
      1) Authorize the distribution of interim dividends for the financial year 2021 from the 2021 Net Profit (before the Initial Public
         Offering) in the amount of:
         a) Approximately IDR7.17.- per share or IDR400,000,000,000.- to the Company’s Shareholders and the payment has been made
            on August 9, 2021; and
         b) Approximately IDR5.38.- per share or IDR300,000,000,000.- to the Company’s Shareholders and the payment has been made
            on September 20, 2021;
      Such that, the total amount is approximately IDR12.55.- per share or IDR700,000,000,000.- to the holders/owners of 55,753,555,600
      of the Company’s shares;
      2) Distribute cash dividends for the financial year 2021 from the 2021 Net Profit (after the Initial Public Offering) of IDR8.- per share
         or a total of IDR495,628,444,800.- to the holders/owners of 61,953,555,600 of the Company’s shares, with due observance of the
         prevailing laws and regulations including the prevailing tax regulations;
         The following terms and conditions apply to the dividend payment:
         a) The remaining dividends for the financial year 2021 shall be paid for any share issued by the Company that is registered in the
            Company’s Shareholders List on the recording date determined by the Board of Directors;
         b) For the payment of the remaining dividends for the financial year 2021, the Board of Directors shall withhold dividend tax in
            accordance with applicable tax regulations; and
         c) The Board of Directors is authorized to determine matters relating to the payment of the remaining dividends for the financial
            year 2021, including (but not limited to):
            (1) to determine the record date as referred to in letter a in determining the Company’s shareholders who are entitled to
                receive payment of the remaining dividends for the financial year 2021; and
            (2) to determine the payment date of the remaining dividends for the financial year 2021 and other technical matters without
                prejudice to the regulations of the Stock Exchange where the Company’s shares are listed;
   b. An amount of IDR12,000,000,000.- is allocated and recorded as reserve fund;
   c. The remaining portion of 2021 Net Profit is recorded as unappropriated retained earnings; and
3. To approve the granting of full authority and power to the Board of Directors with substitution rights to take all necessary actions in
   connection with the resolutions, one and another without any exception.
        Voting Results                                                            Realization
Agree         : 59,984,267,179
                                   Fully realized. The cash dividend was distributed on May 19, 2022 to the Shareholders of the Company
Abstain       :-
                                   whose names are recorded in the Company’s Shareholder List on May 12, 2022.
Disagree      : 130,199,300


                                                                 Agenda 3
                                                                   Agenda
The appointment of a Registered Public Accountant and/or Registered Public Accounting Firm to audit the Company’s Consolidated
Financial Statements for the financial year ended December 31, 2022.




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Page 112
                                               Resolutions of the 2022 Annual GMS
                                                                  Resolutions
1. To delegate the authority to the Board of Commissioners to appoint a Public Accountant and/or Registered Public Accounting Firm in
   Indonesia to conduct an Audit on the Company’s Consolidated Financial Statements for the financial year ended December 31, 2022,
   taking into account the recommendations of the Audit Committee, provided that such Public Accountant and/or Public Accounting
   Firm is registered with the Financial Services Authority, has a good reputation, and has no conflict of interest with the Company and its
   affiliates; and
2. To grant the authority to the Board of Directors to determine the honorarium of the Public Accountant and/or Registered Public
   Accounting Firm and other requirements in connection with the appointment.
          Voting Results                                                           Realization
                                   Fully realized. The Board of Commissioners has appointed Public Accounting Firm (Kantor Akuntan Publik or
Agree            : 59,511,667,999
                                   “KAP”) Tanudiredja, Wibisana, Rintis & Rekan (a member firm of PwC global network) to audit the Company’s
Abstain          :-
                                   Consolidated Financial Statements for the financial year ended December 31, 2022 based on the Minutes
Disagree         : 602,798,480
                                   of the Board of Commissioners Meeting No. 008/AA/SK/KOM/IX/2022 dated September 12, 2022.


                                                                Agenda 4
                                                                 Agenda
The determination of salary/honorarium and other benefits for members of the Board of Commissioners and the Board of Directors for
the year 2022.
                                                               Resolutions
To grant power and authority to the Board of Commissioners:
1. To determine the salary/honorarium and other benefits for members of the Board of Commissioners and the Board of Directors for the
   year 2022 through the Board of Commissioners Meeting; and
2. To determine the distribution amount among members of the Board of Commissioners and members of the Board of Directors;
by taking into account the recommendations from the Nomination and Remuneration Committee, the provisions of the Articles of
Association, and the prevailing rules and regulations.
        Voting Results                                                        Realization
                                  Fully realized. The Board of Commissioners has determined the salary/honorarium and other benefits
Agree          : 59,231,056,155
                                  for members of the Board of Commissioners and the Board of Directors for the year 2022 through
Abstain        :-
                                  the Board of Commissioners Meeting based on the Minutes of the Board of Commissioners Meeting
Disagree       : 883,410,324
                                  No. 005/AA/BAR/KOM/VII/2022 dated July 13, 2022.


                                                                Agenda 5
                                                                Agenda
The submission of Accountability Report on the Realization of the Use of Proceeds from the Initial Public Offering.
                                                             Resolutions
The Fifth Agenda only constitutes a Report in connection with the Realization of the Use of Proceeds from the Initial Public Offering,
therefore no vote/approval from the Meeting is required.
        Voting Results                                                        Realization
Agree         :-
Abstain       :-                                                                    -
Disagree      :-


Extraordinary GMS on April 22, 2022

CONVENTION STAGES OF THE EXTRAORDINARY GMS ON APRIL 22, 2022

               Notification
  1            Notified the Financial Services Authority on March 9, 2022 through
               Letter No. 017/AA/CORSEC/III/2022.

               Announcement
  2            Announced on March 16, 2022 through the websites of the Company, Indonesia Stock Exchange,
               and Indonesia Central Securities Depository.

               Invitation
  3            Announced on March 31, 2022 through the websites of the Company, Indonesia Stock Exchange,
               and Indonesia Central Securities Depository.




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CONVENTION STAGES OF THE EXTRAORDINARY GMS ON APRIL 22, 2022

               Implementation
  4            Convened on April 22, 2022 at 12:17-12:42 (GMT+7) in Avian Brands Building Meeting Room,
               Jl. Ahmad Yani No. 317, Surabaya, 60234, Jawa Timur, Indonesia.

               GMS Resolutions
  5            The Meeting Summary was published on April 25, 2022 on the websites of the Company,
               Indonesia Stock Exchange, and Indonesia Central Securities Depository.


                                     Participants of the Extraordinary GMS on April 22, 2022
The Shareholders          The Extraordinary GMS dated April 22, 2022 was attended by 60,132,684,379 shares with valid voting rights or
                          97.0609% of 61,953,555,600 shares which constitute all of the shares issued by the Company.
The Board of              President Commissioner            Hermanto Tanoko
Commissioners             Independent Commissioner          Mohammad Noor Rachman Soejoeti
                                                            (attended the Annual GMS electronically via the eASY.KSEI application)
The Board of              President Director                Wijono Tanoko
Directors                 Vice President Director           Ruslan Tanoko
                          Director                          Robert Christian Tanoko
                          Director                          Kurnia Hadi Sinanto
Independent Parties in the Convention of the Extraordinary GMS on April 22, 2022
The Company appointed PT Bima Registra, as the Securities Administration Bureau, to count the votes and/or validate the votes and
appointed Dr. Susanti, S.H., M.Kn., a Notary in Surabaya City as the Public Notary, to verify the vote count in the 2022 Extraordinary GMS.


                                     Resolutions of the Extraordinary GMS on April 22, 2022
                                                                   Agenda
                                                                   Agenda
Approval of Amendments on:
1. Article 11 paragraph (10) of the Company’s Articles of Association regarding the Rectification of GMS Invitation and Shareholders’
   Rights;
2. Article 13 paragraph (1), Article 13 paragraph (12), and Article 13 paragraph (13) of the Company’s Articles of Association regarding the
   Board of Directors; and
3. Article 16 paragraph (15) letter d and Article 16 paragraph (16) of the Company’s Articles of Association regarding the Board of
   Commissioners.
                                                                 Resolutions
1. To approve the Amendment to Article 11 paragraph (10) of the Company’s Articles of Association regarding the Rectification of GMS
   Invitation and Shareholders’ Rights, such that it reads as follows:
   Article 11
   10.a. In the event that the changes of information on the GMS convention date and/or the addition of GMS agenda are made not due
         to the Company’s negligence or based on an order of the Financial Services Authority, provisions on the obligation to re-invite
         shall not apply, insofar that the OJK does not order the re-invitation. The provisions on the media and delivery of invitation to
         the GMS as referred to in paragraph (5) of this Article shall apply mutatis mutandis to the media and delivery of rectification of
         invitation to the GMS.
      b. Shareholders have the following rights:
         (i) Shareholders, both individually or represented by virtue of a power of attorney, are entitled to attend the GMS.
         (ii) Shareholders may be represented by other Shareholders or third parties by power of attorney with due observance of the
               prevailing laws and regulations.
         (iii) In a GMS, each share shall grant 1 vote to its holder.
         (iv) Shareholders who are entitled to attend GMS are Shareholders whose names are recorded on the Company’s Shareholders List
               1 business day prior to the GMS invitation.
         (v) In the event of an error in the invitation as referred to in paragraph (9) of this Article, Shareholders who are entitled to attend
               GMS are Shareholders whose names are recorded on the Shareholders List 1 business day prior to the rectification of the GMS
               invitation.
2. To approve the Amendments to Article 13 paragraph (1), Article 13 paragraph (12), and Article 13 paragraph (13) of the Company’s Articles
   of Association regarding the Board of Directors, such that they read as follows:
   Article 13
   1.    The Company shall be managed and led by the Board of Directors which consists of at least 3 members of the Board of Directors, any
         of which shall be appointed as the President Director, if necessary one or more Vice President Director(s) may be appointed, with
         due observance of the applicable laws and regulations in the Capital Market sector.




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                                    Resolutions of the Extraordinary GMS on April 22, 2022
                                                               Resolutions
  12.    In the event the resignation of members of the Board of Directors results in the number of members of the Board of Directors being
         less than 3, such resignation shall be valid when determined by a GMS and new members of the Board of Directors have been
         appointed to fulfill the minimum requirement for the number of members of the Board of Directors.
   13. In the event that the Company does not convene a GMS within the period as referred to above, then with the lapse of such period
         the resignation of members of the Board of Directors shall become effective, provided that if such resignation results in the number
         of members of the Board of Directors being less than 3, then such resignation shall be valid if approved by a GMS and a new
         member of the Board of Directors has been appointed so that the minimum requirement for the number of members of the Board
         of Directors is met. Liability may be held against resigning member of the Board of Directors from the date of his/her appointment
         until the date of his/her resignation.
3. To approve the Amendment to Article 16 paragraph (15) letter d and Article 16 paragraph (16) of the Company’s Articles of Association
   regarding the Board of Commissioners, such that they read as follows:
   Article 16
   15.d. In the event that the resignation of members of the Board of Commissioners results in the number of the member of the Board of
         Commissioners being less than 2, such resignation shall be valid when determined by a GMS and the new Board of Commissioners
         have been appointed to fulfill the minimum requirement for the number of members of the Board of Commissioners.
   16. In the event that the Company does not convene a GMS within the period as referred to above, then with the lapse of such period
         the resignation of members of the Board of Commissioners shall become effective, provided that if such resignation results in the
         number of members of the Board of Commissioners being less than 2, then such resignation shall be valid if approved by a GMS and
         a new member of the Board of Commissioners has been appointed so that the minimum requirement for the number of members
         of the Board of Commissioners has been met. Liability may be held against resigning member of the Board of Commissioners from
         the date of his/her appointment until the date of his/her resignation.
        Voting Results                                                           Realization
Agree         : 60,122,646,279    Fully realized through amendments to the Articles of Association based on the deed of Minutes
Abstain       : 10,038,000        of the Extraordinary General Meeting of Shareholders No. 3 dated April 22, 2022, drawn up by
Disagree      : 100               Dr. Susanti, S.H., M.Kn., a Notary in Surabaya City.



Extraordinary GMS on September 7, 2022

CONVENTION STAGES OF THE EXTRAORDINARY GMS ON SEPTEMBER 7, 2022

               Notification
  1            Notified the Financial Services Authority on July 25, 2022 through
               Letter No. 055/AA/CORSEC/VII/2022.

               Announcement
  2            Announced on August 1, 2022 through the websites of the Company, Indonesia Stock Exchange,
               and Indonesia Central Securities Depository.

               Invitation
  3            Announced on August 16, 2022 through the websites of the Company, Indonesia Stock Exchange,
               and Indonesia Central Securities Depository.

               Implementation
  4            Convened on September 7, 2022 at 09.47-10.12 (GMT+7) in Avian Brands Building Meeting Room,
               Jl. Ahmad Yani No. 317, Surabaya, 60234, Jawa Timur, Indonesia.

               GMS Resolutions
  5            The Meeting Summary was published on September 9, 2022 on the websites of the Company,
               Indonesia Stock Exchange, and Indonesia Central Securities Depository.




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                                  Participants of the Extraordinary GMS on September 7, 2022
The Shareholders          The Extraordinary GMS dated September 7, 2022 was attended by 60,628,332,845 shares with valid voting rights
                          or 97.8609% of 61,953,555,600 shares which constitute all of the shares issued by the Company.
The Board of              President Commissioner            Hermanto Tanoko
Commissioners
                          Independent Commissioner          Mohammad Noor Rachman Soejoeti
The Board of              President Director                Wijono Tanoko
Directors
                          Vice President Director           Ruslan Tanoko
                          Director                          Robert Christian Tanoko
                          Director                          Kurnia Hadi Sinanto
Independent Parties in the Convention of the Extraordinary GMS on September 7, 2022
The Company appointed PT Bima Registra, as the Securities Administration Bureau, to count the votes and/or validate the votes and
appointed Dr. Susanti, S.H., M.Kn., a Notary in Surabaya City as the Public Notary, to verify the vote count in the 2022 Extraordinary GMS.


                                  Resolutions of the Extraordinary GMS on September 7, 2022

                                                                  Agenda
                                                                  Agenda
Approval of changes in the composition of members of the Board of Directors.
                                                                Resolutions
1. To appoint Mrs. Angelica Tanisia Jozar as the Company’s Director as of the closing of this Meeting with the same end of the term of office
   as current members of the Board of Directors and the Board of Commissioners, i.e. until the closing of the Company’s Annual General
   Meeting of Shareholders in 2026.
2. To determine and ratify the composition of the members of the Board of Commissioners and the Board of Directors effective as of the
   closing of this Meeting until the end of the term of office of members of the Board of Directors and the Board of Commissioners, i.e. until
   the closing of the Company’s Annual General Meeting of Shareholders in 2026, with the following composition:
   The Board of Commissioners:
   President Commissioner          : Hermanto Tanoko
   Independent Commissioner : Mohammad Noor Rachman Soejoeti
   The Board of Directors
   President Director              : Wijono Tanoko
   Vice President Director         : Ruslan Tanoko
   Director                        : Robert Christian Tanoko
   Director                        : Kurnia Hadi Sinanto
   Director                        : Angelica Tanisia Jozar
3. To grant authority and power with the substitution right to the Board of Directors to take all actions in connection with above changes
   and determination of the composition of the members of the Board of Commissioners and the Board of Directors, including but not
   limited to making or asking to be made as well as executing all deeds drawn up before a Notary in connection with the composition of
   members of the Board of Commissioners and the Board of Directors, to submit notifications to the Minister of Law and Human Rights of
   the Republic of Indonesia and report to other authorized agencies, register and announce the deeds, and do everything necessary and
   required by applicable laws and regulations.
        Voting Results                                                            Realization
Agree          : 60,628,330,345
                                     Fully realized based on the Deed of Restatement of Meeting Resolutions No. 2 dated September 7, 2022,
Abstain        : 2,400
                                     drawn up before Dr. Susanti, S.H., M.Kn., a Notary in Surabaya City.
Disagree       : 100




                                                                     2023 Annual Report - PT Avia Avian Tbk                     113
Page 116
The Board of Commissioners
The Board of Commissioners is an organ of the Company that has the collective duties and responsibilities to supervise and
advise the Board of Directors, as well as to ensure that the Company has implemented GCG practices at all organizational levels
or stages. The Board of Commissioners must be able to act independently, in regard that it does not have conflict of interest
that could interfere with its ability to perform independently and critically, both in terms of relations amongst members of
the Board of Commissioners as well as relations with the Board of Directors. The fulfillment of these duties and responsibilities
is assisted by the supporting organs of the Board of Commissioners, namely the Audit Committee, the Nomination and
Remuneration Committee, and the Good Corporate Governance Committee.



The Board of Commissioners Charter

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



Composition of the Board of Commissioners

Based on Article 16 paragraph (1) of the Company’s Articles of Association, the composition of the Board of Commissioners
of the Company may comprise of a minimum of 2 members, one of whom is the President Commissioner and the other is
an Independent Commissioner. All members of the Board of Commissioners appointed have diverse compositions in terms
of education, work experiences, age, and expertise. The appointment and dismissal of the Board of Commissioners is the
authority of the GMS. The term of office of the Board of Commissioners is 5 years, until the Annual GMS to be convened in 2026.
In 2023, the composition of the Board of Commissioners consists of 2 people, i.e.:

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



Dual Appointment of the Board of Commissioners

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




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Independent Commissioner

An Independent Commissioner is a Board of Commissioners member with no financial, management, shareholding,
and/or familial relationships with other members of the Board of Commissioners, members of the Board of Directors, and/or
Controlling Shareholders that may hinder or impede his/her position to act independently in accordance with GCG principles.
The existence of Independent Commissioners is intended to create a more objective and independent climate and maintain
fairness. Independent Commissioners are expected to provide a balance between the interests of majority Shareholders and
the protection of minority Shareholders’ interests, including public Shareholders and other stakeholders.

The Company has appointed 1 member of the Board of Commissioners as an Independent Commissioner or an equivalent
of 50% of the total number of members of the Board of Commissioners. Therefore, these conditions have exceeded the
minimum requirement specified in OJK Regulation No. 33/POJK.04/2014 concerning the Board of Directors and the Board of
Commissioners of Issuers or Public Companies (“POJK 33/2014”), i.e. at least 30% of the total number of members of the Board
of Commissioners. The Independent Commissioner position held by Mr. Mohammad Noor Rachman Soejoeti has also met the
requisite criteria stipulated in POJK 33/2014, including:

                                 Description of Criteria                                         Mohammad Noor Rachman Soejoeti
 Not a person who works or has the authority and responsibility to plan, lead, control, or                     √
 supervise activities of the Company within the last 6 months, except for reappointment as
 Independent Commissioner for the next period.
 Not holding any shares, either directly or indirectly, in the Company.                                        √
 Not having any affiliation with the Company, members of the Board of Commissioners,                           √
 members of the Board of Directors, Main Shareholders, or Controlling Shareholders of
 the Company.
 Not having any business relationship, either directly or indirectly, related to the Company’s                 √
 business activities.



Duties and Responsibilities of the Board of Commissioners

Based on the Board of Commissioners Charter, the duties and responsibilities of the Board of Commissioners are, among others:
1. Supervising the management of the Company by the Board of Directors, both in regards to the Company and its business,
    as well as providing advice to the Board of Directors;
2. Performing specifically-assigned tasks in accordance with the Articles of Association, applicable laws and regulators, and/
    or based on the resolutions of the GMS;
3. Performing duties, responsibilities, and authorities in accordance with the provisions of the Company’s Articles of
    Association and the resolutions of the GMS, including proposing the appointment of a Public Accountant and/or Public
    Accounting Firm that will conduct audit services on the Company’s financial statements;
4. Directing, monitoring, and evaluating the implementation of the Company’s strategic policies;
5. Implementing and ensuring the implementation of risk management and good corporate governance principles in each
    of the Company’s business activity, at all organizational levels or stages;
6. Evaluating and approving the Company’s work plan;
7. Assisting and encouraging efforts in fostering and developing the Company;
8. Forming the Audit Committee as well as other committees in accordance with the prevailing laws and regulations;
9. Ensuring that the supporting committees of the Board of Commissioners have effectively performed their duties and
    responsibilities;
10. Evaluating the performance of the committees assisting the Board of Commissioners in performing their duties and
    responsibilities at the end of each financial year; and
11. Convening the Annual GMS and other GMS in accordance with their authority as regulated by laws and regulations as well
    as the Articles of Association.




                                                                      2023 Annual Report - PT Avia Avian Tbk          115
Page 118
Division of Duties of the Board of Commissioners

In addition to collective duties and responsibilities, in accordance with the Minutes of the Board of Commissioners
No. 006/AA/BAR/KOM/IX/2023 dated September 19, 2023, a division of duties is assigned to each individual member of the
Board of Commissioners to ensure effective and efficient implementation of the duties and responsibilities of each member.
The duties and responsibilities of each Board of Commissioners member are described as follows:

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



Decisions Requiring the Board of Commissioners Approval

Decisions that require the Board of Commissioners’ approval prior to being implemented by the Company, in accordance with
the Company’s Articles of Association, are described as follows:
1. Selling, pledging, or otherwise disposing of rights to immovable property belonging to the Company;
2. Binding the Company as guarantor;
3. Establishing a new business or investing;
4. Transferring investment in other companies, both domestic and overseas;
5. Receiving loans from any party;
6. Giving loans to any party save for loans in business activities and loans to the Company’s employees and Subsidiaries; and
7. Opening branches or representative offices, both inside and outside the territory of the Republic of Indonesia.



The Board of Commissioners Meeting

Meeting Policy
Based on the provisions in POJK No. 33/2014 and the Company’s Articles of Association, the Board of Commissioners is required
to convene an internal meeting no fewer than once in every 2 months, whereas joint meetings with the Board of Directors must
be convened no fewer than once in every 4 months.




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Meeting Convention
Throughout 2023, the Board of Commissioners has convened 6 internal meetings and 13 joint meetings with the Board of Directors.
Information on the number of meetings and meeting attendance by members of the Board of Commissioners is as follows:

                                         Internal Meetings of               Joint meetings with
                                                                                                                         GMS
                                     the Board of Commissioners            the Board of Directors
      Name           Position     Number                            Number                                    2023    2023 Extraordinary GMS
                                               Total   Attendance                Total   Attendance
                                    of                                of                                     Annual   April 13,   December 7,
                                            Attendance     (%)                Attendance     (%)
                                  Meeting                           Meeting                                   GMS      2023          2023

                   President
Hermanto Tanoko                      6          6         100.00      13           12               92.31      √         √             √
                   Commissioner

Mohammad Noor      Independent
                                     6          6         100.00      13           13           100.00         √         √             √
Rachman Soejoeti   Commissioner




Competence Development of the Board of Commissioners

Policy on Competence Development of the Board of Commissioners
Policy concerning the implementation of programs on competence development of the Board of Commissioners is stipulated
in the Company’s Board of Commissioners Charter. The Board of Commissioners is required to keep abreast of the latest
developments in economy, finance, related industries, regulations, and other matters related to the Company as well as to
improve their capabilities for the advancement of the Company through training and education programs, seminars, visits,
benchmarks, and brainstorming.

Information concerning the competence development programs participated by members of the Board of Commissioners
throughout 2023 has been disclosed in the Company Profile Chapter, in particular the Profile section of each member of the
Board of Commissioners.



Orientation Program for New Members of the Board of Commissioners

The Company implements a policy to conduct an introduction program on the Company to new members of the Board
of Commissioners. The program is designed for the new member of the Board of Commissioners to gain knowledge and
understanding of the Company’s profile, including the business characteristics and processes of the Company in a time efficient
manner. The orientation program for the newly appointed Board of Commissioners includes the following:
1. Knowledge on the Company, among others:
    a. The Company’s Vision, Mission, purposes, and objectives;
    b. The Company’s strategy;
    c. The Company’s medium and long-term plans;
    d. The Company’s operational performance;
    e. The Company’s financial performance; and
    f. The Company’s risk management;
2. Knowledge concerning the designation of the Board of Commissioners, among others:
    a. Duties, responsibilities, and authorities of the Board of Commissioners;
    b. Working time;
    c. Relationship with members of the Board of Directors; and
    d. Relevant rules/provisions.

Considering that the composition of the Company’s Board of Commissioners in 2023 remains the same as the previous year,
the Company did not conduct any orientation programs for the members of the Board of Commissioners in 2023.




                                                                     2023 Annual Report - PT Avia Avian Tbk                       117
Page 120
Performance Assessment of the Board of Commissioners

                            Policy, Procedure, and Implementation of Performance Assessment

Policy concerning performance assessment of the Board of Commissioners refers to the Company’s Performance Assessment Policy of
the Board of Commissioners and the Board of Directors stipulated on December 27, 2021. With this policy, each member of the Board of
Commissioners may assess the performance of the Board of Commissioners collegially and not assess the individual performance of each
member of the Board of Commissioners.

                                                               Assessor

Performance assessment of the Board of Commissioners is performed independently by each member of the Board of Commissioners
once every 1 year by taking into consideration the achievement of the agreed assessment aspects.

                                               Aspects of Performance Assessment

• Supervising the management of the Company performed by the Board of Directors;
• Reviewing, examining, and approving the Company’s annual work plan;
• Performing tasks specifically assigned to the Board of Commissioners in accordance with the Company’s Articles of Association,
  applicable laws and regulations, and/or GMS resolutions;
• Performing duties and responsibilities in accordance with the provisions of the Company’s Articles of Association and the resolutions
  of the GMS; and
• Conforming to the Company’s Articles of Association as well as applicable laws and regulations, and the obligations to perform duties in
  accordance with the principles of professionalism, efficiency, transparency, independence, accountability, responsibility, and fairness,
  including the convention of the Board of Commissioners Meetings in accordance with applicable regulations.

                                                         Assessment Results

Based on the 2023 performance assessment procedures and criteria, each the Board of Commissioners member has satisfactorily
performed their duties and responsibilities. This was also reflected in the Company’s condition, which exhibited solid performance amidst
economic challenges and dynamics throughout 2023.



Performance Assessment of Committees under the Board of Commissioners

                            Policy, Procedure, and Implementation of Performance Assessment

At the end of each financial year, the Board of Commissioners assesses the performance of the committees under its supervision by taking
into consideration the assignment reports and annual reports on the implementation of activities of such committees. The results of the
assessment serve as the basis for consideration in the reappointment of committee members.

                                        Aspects and Results of Performance Assessment

•   Realization of work plan;
•   Attendance in committee meetings;
•   Quality of supervision; and
•   Recommendations provided.

                                               Results of Performance Assessment

The Audit Committee      Based on the procedures and criteria for performance assessment conducted in 2023, the Audit Committee
                         is considered to have properly performed its duties and responsibilities related to monitoring and evaluating
                         the implementation of financial statement audits, and the internal control system for all aspects of the
                         Company’s operations.

The Nomination and       Based on the procedures and criteria for performance assessment conducted in 2023, the Nomination and
Remuneration             Remuneration Committee is considered to have assisted the Board of Commissioners in providing recommendations
Committee                regarding remuneration and nomination systems and policies that are appropriate for the Board of
                         Commissioners and the Board of Directors.

The Good Corporate       Based on the procedures and criteria for performance assessment performed conducted in 2023, the Good
Governance               Corporate Governance Committee is considered to have properly performed its duties and responsibilities. The
Committee                Good Corporate Governance Committee has assisted the Board of Commissioners in following up on any reports
                         of violations of the Business Ethics and Code of Conduct, and provided recommendations for settlement of
                         these violations including the sanctions that would be imposed.




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The Board of Directors
The Board of Directors is an organ of the Company with full responsibility for the management of the Company, and represents
the Company both inside and outside the court, for the Company’s interests and objectives in accordance with the Articles of
Association and the applicable laws and regulations. In managing the Company, the Board of Directors collectively perform
their duties and bear their responsibilities in order that all owned resources may increase profitability such that the value of
the Company may grow in a sustainable manner. Each member of the Board of Directors performs their duties and makes
resolutions in accordance with the division of duties and authority. However, the implementation of tasks by each member
of the Board of Directors remains a collective responsibility. The Board of Directors is held accountable for the fulfillment of
its duties to the Shareholders through the GMS. This reflects the accountability of the Company’s management in accordance
with the GCG principles.



The Board of Directors Charter

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



Composition of the Board of Directors

Based on Article 13 paragraph (1) of the Company’s Articles of Association, the composition of the Board of Directors comprises
of at least 3 people, one of whom may be appointed as President Director and Vice President Director. All members of
the Board of Directors appointed have diverse compositions in terms of education, work experiences, age, gender,
and expertise. The appointment and dismissal of the Board of Directors is the authority of the GMS. The term of office of
the Board of Directors is 5 years, until the Annual GMS to be convened in 2026. In 2023, the composition of the Board of
Directors comprises of 5 people, i.e.:

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



Dual Appointment of the Board of Directors

The Board of Directors Charter regulates the terms regarding dual appointment of the Company’s Board of Directors, as
described as follows:
1. The Board of Directors members may hold dual appointments as:
   a. The Board of Directors member in 1 other Issuer or Public Company;
   b. The Board of Commissioners member in a maximum of 3 other Issuers or Public Companies; and
   c. Committee member in a maximum of 5 committees in the Company or other Public Company in which he/she is a
       Board of Directors member or a Board of Commissioners member; and
2. Dual appointments mentioned in the points above may only be carried out provided that it does not conflict with other
   laws and regulations.




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Independence

In carrying out its duties, the Board of Directors acts independently and free from any party’s interest. All members of
the Board of Directors at all times work in a professional manner, with utmost dedication prioritizing the interests of the
Company and its stakeholders. All members of the Board of Directors are independent in the sense that they are able to carry
out their duties and responsibilities without any pressure or influence from any party.



Duties and Responsibilities of the Board of Directors

Information regarding the duties and responsibilities of the Board of Directors based on the Board of Directors Charter is
described as follows:
1. Executing, and bearing the responsibilities for, the management of the Company for the Company’s interests in accordance
    with the purposes and objectives of the Company which have been stipulated in the Articles of Association;
2. Managing the Company in accordance with the authorities and responsibilities as stipulated in the Articles of Association
    and the prevailing laws and regulations;
3. Managing the Company’s assets in accordance with the prevailing laws and regulations;
4. Implementing risk management system and GCG principles in each of the Company’s business activities at all organizational
    levels or stages;
5. Establishing the Company’s organizational structure and working procedures;
6. Convening Annual GMS and other GMS in accordance with the Articles of Association as well as the laws and regulations;
    and
7. Forming supporting committees in accordance with the prevailing laws and regulations, and evaluating the performance
    of such committees at the end of each financial year.



Division of Duties of the Board of Directors

In addition to collective duties and responsibilities, in accordance with the Circular Decree of the Board of Directors
No. 013/AA/SK/DIR/IX/2023 dated September 20, 2023, a division of duties is assigned to each individual member of the Board
of Directors to ensure effective and efficient implementation of the duties and responsibilities of each member. The duties and
responsibilities of each member of the Board of Directors are described as follows:

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



The Board of Directors Meeting

Meeting Policy
Based on the provisions in POJK No. 33/2014 and the Company’s Articles of Association, the Board of Directors is required to
convene an internal meeting no fewer than once a month, whereas joint meetings with the Board of Commissioners must be
convened no fewer than once in every 4 months.




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Meeting Convention
Throughout 2023, the Board of Directors has convened 12 internal meetings and 13 joint meetings with the Board of
Commissioners. Information regarding the number of meetings and meeting attendance by members of the Board of Directors
is as follows:

                                               Internal Meetings of               Joint meetings with
                                                                                                                           GMS
                                              the Board of Directors          the Board of Commissioners
       Name             Position       Number                              Number                                        Extraordinary GMS 2023
                                                    Total   Attendance                  Total   Attendance     Annual
                                         of                                  of                                           April 13,   December 7,
                                                 Attendance     (%)                  Attendance     (%)       GMS 2023
                                       Meeting                             Meeting                                         2023          2023

                      President
Wijono Tanoko                            12           12          100.00     13          9           69.23       x           x              √
                      Director

                      Vice President
Ruslan Tanoko                            12           12          100.00     13         13          100.00       √           √              √
                      Director

Robert Christian
                      Director           12           12          100.00     13         13          100.00       √           √              √
Tanoko

Kurnia Hadi Sinanto   Director           12           12          100.00     13         13          100.00       √           √              √

Angelica Tanisia
                      Director           12           12          100.00     13         12           92.31       √           √              √
Jozar




Competence Development of the Board of Directors

Policy on the Competence Development of the Board of Directors
Policy concerning the implementation of programs on competence development of the Board of Directors is stipulated in the
Company’s Board of Directors Charter. The Board of Directors is required to keep abreast of the latest developments in economy,
finance, related industries, regulations, and other matters related to the Company as well as to improve their capabilities for
the advancement of the Company through training and education programs, seminars, visits, benchmarks, and brainstorming.

Information related to the competence development programs participated by members of the Company’s Board of Directors
throughout 2023 has been disclosed in the Company Profile Chapter, in particular the Profile section of each member of the
Board of Directors.



Orientation Program for New Members of the Board of Directors

The Company has an orientation program in place, which must be completed by newly appointed members of the Board
of Directors. The program is designed for new members of the Board of Directors to gain knowledge and understanding
of the Company’s profile, including the business characteristics and processes of the Company in a time efficient manner.
The orientation program for the newly appointed Board of Directors includes the following:
1. Knowledge of the Company, among others:
    a. The Company’s Vision, Mission, purposes, and objectives;
    b. The Company’s strategy;
    c. The Company’s medium and long-term plans;
    d. The Company’s operational performance;
    e. The Company’s financial performance; and
    f. The Company’s risk management;
2. Knowledge concerning the designation of the Board of Directors, among others:
    a. Duties, responsibilities, and authorities of the Board of Directors;
    b. Working time;
    c. Relationships with members of the Board of Commissioners’; and
    d. Relevant rules/provisions.

Considering that the composition of the Company’s Board of Directors in 2023 remains the same as the previous year, the
Company did not conduct any orientation programs for the members of the Board of Directors in 2023.




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Performance Assessment of the Board of Directors

                              Policy, Procedure, and Implementation of Performance Assessment
Policy concerning performance assessment of the Board of Directors refers to the Company’s Performance Assessment Policy of the
Board of Commissioners and the Board of Directors formulated on December 27, 2021. With this policy, each member of the Board of
Commissioners may assess the performance of the Board of Directors collegially and not assess the individual performance of each
member of the Board of Directors.
                                                                 Assessor
Performance assessment of the Board of Directors is performed independently by each member of the Board of Commissioners once every
1 year taking into consideration the achievement of the agreed assessment aspects. In addition, each member of the Board of Directors
may assess the performance of the Board of Directors collegially as an evaluation of their duties and achievements during the financial year.
                                                 Aspects of Performance Assessment
• Leading, managing, and controlling the company in accordance with the Company’s objectives;
• Making efforts to improve the efficiency and effectiveness of the Company;
• Controlling, maintaining, and managing the Company’s assets;
• Formulating annual work plan which contains the Company’s annual budget and submitting the plan to the Board of Commissioners
  for approval before the start of the next financial year;
• Performing their duties and responsibilities in accordance with the provisions of the Company’s Articles of Association and the
  resolutions of the GMS; and
• Conforming to the Company’s Articles of Association as well as prevailing laws and regulations, and the obligations to perform duties in
  accordance with the principles of professionalism, efficiency, transparency, independence, accountability, responsibility, and fairness,
  including the convention of the Board of Directors Meetings in accordance with applicable regulations.
                                                 Results of Performance Assessment
Based on the procedures and criteria of performance assessment conducted by the Board of Commissioners in 2023, the Board of Directors
is assessed to have performed satisfactorily by implementing business strategies in accordance with the established business plan and
budget. In 2023, the Company successfully recorded net revenue of IDR7,016.88 billion and a current year profit of IDR1,643.10 billion.



Performance Assessment of Organs Under the Board of Directors

                              Policy, Procedure, and Implementation of Performance Assessment
At the end of each financial year, the Board of Directors assesses the performance of supporting organs under its supervision by taking
into consideration the assignment reports and annual reports on the implementation of activities of the organs supporting the Board of
the Directors. The results of the assessment serve as the basis for consideration in the reappointment of such supporting organs.
                                         Aspects and Results of Performance Assessment
•   Realization of the implementation of duties and responsibilities;
•   Competence possessed;
•   Meeting attendance; and
•   Recommendations provided.
                                                 Results of Performance Assessment
The Related Party          Based on the procedures and criteria for assessment of performance conducted in 2023, the Related Party
Transaction                Transactions Committee is considered to have played an active role in assisting the Board of Directors to provide
Committee                  input and suggestions related to affiliated transactions performed by the Company and Subsidiaries, such that
                           affiliated transactions are conducted in accordance with the generally accepted business practices, applicable
                           laws and regulations, and comply with fair transaction principles.
The Corporate              Based on the procedures and criteria for assessment of performance conducted in 2023, the Corporate
Secretary                  Secretary is considered to have played an active role in following developments and ensuring compliance with
                           laws and regulations in the capital market, as well as providing input to the Board of Directors and the Board
                           of Commissioners to comply with these laws and regulations.
The Internal Audit         Based on the procedures and criteria for assessment of performance conducted in 2023, the Internal Audit
Unit                       Unit is considered to have participated in assisting the Board of Directors with regard to the implementation of
                           internal control and risk management, as well as the implementation of corporate governance in all aspects of
                           the Company’s business.




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The Board of Commissioners and
the Board of Directors Diversity Policy
Members of the Company’s Board of Commissioners and the Board of Directors appointed in the GMS have a fairly diverse
composition based on age, educational background, expertise, and experience required in carrying out their duties and
responsibilities. This diversity policy is set forth in the Board of Commissioners Charter and the Board of Directors Charter,
according to which each member of the Board of Commissioners and the Board of Directors must meet certain criteria,
i.e. having the knowledge and/or expertise in the fields required by the Company. The commitment to diversity is implemented
not only to comply with the prevailing laws and regulations, but also as part of the Company’s efforts to broaden the
decision-making perspectives of the Board of Commissioners and the Board of Directors and to promote equality at all levels
of positions, including the top management. The diversity of composition of the Company’s Board of Commissioners and the
Board of Directors as of December 31, 2023 is described as follows:

                                                                                                       Educational
           Name                      Position            Citizenship    Gender         Age
                                                                                                   Background and Skills
 Hermanto Tanoko              President Commissioner      Indonesia       Male      61 Years Old         Management
 Mohammad Noor
                            Independent Commissioner      Indonesia       Male      66 Years Old           Economy
 Rachman Soejoeti
 Wijono Tanoko                   President Director       Indonesia       Male      71 Years Old      Sales and Marketing
 Ruslan Tanoko                Vice President Director     Indonesia       Male      48 Years Old     Chemical Engineering
 Robert Christian Tanoko             Director             Indonesia       Male      38 Years Old     Business and Trading
 Kurnia Hadi Sinanto                 Director             Indonesia       Male      54 Years Old          Accounting
 Angelica Tanisia Jozar              Director             Indonesia      Female     42 Years Old         Engineering




Nomination and Remuneration of the Board
of Commissioners and the Board of Directors
Nomination of the Board of Commissioners and the Board of Directors
Policy and Procedure of Nomination of the Board of Commissioners and the Board of Directors
The procedure for the nomination of the Board of Commissioners and the Board of Directors is described as follows:
1. The Nomination and Remuneration Committee (“Committee”) receives proposals from Shareholders/members of the
   Board of Commissioners/members of the Board of Directors regarding the nominations of the Board of Commissioners
   and/or the Board of Directors;
2. The Committee discusses the referred proposal in the Committee meeting. The discussion is stated in the minutes of the
   Committee meeting. During the meeting, several things are considered, including:
   a. Reasons and/or considerations for the proposal;
   b. Qualifications of the candidate in accordance with the relevant proposals; and
   c. Requirements in accordance with the Company’s Articles of Association, the Board of Commissioners Charter, and/or
       the Board of Directors Charter;
3. After deliberation, the Committee provides recommendations to the Board of Commissioners. The recommendation is
   stated in the form of a Committee Decree;




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Page 126
4. Based on the recommendation from the Committee, the Board of Commissioners decides to nominate candidates for
   the Board of Commissioners and/or the Board of Directors to the chairman of the GMS. The resolution of the Board of
   Commissioners is stated in the form of the Board of Commissioners Decree; and
5. The chairman of the GMS determines the composition and/or changes in the members of the Board of Commissioners and/
   or the Board of Directors of the Company. The resolution of the GMS is stated in the Minutes of the GMS.



Remuneration of the Board of Commissioners and the Board of Directors

Procedure and Basis of Remuneration Determination of the Board of Commissioners and the Board of Directors
Determination of the remuneration amount for the Board of Commissioners and the Board of Directors refers to the resolutions
of the GMS whose authority may be delegated to the Board of Commissioners by taking into consideration the opinions and
recommendations from the Nomination and Remuneration Committee. Information regarding the aspects that are taken into
consideration in determining the remuneration of the Board of Commissioners and Directors is described as follows:
1. The prevailing remuneration in the industry, in accordance with the Company’s business activities and business scale in the
    industry;
2. Duties, responsibilities, and authorities of the Board of Commissioners and the Board of Directors in regards to the goals
    achievement and performance of the Company;
3. Target and performance of each member of the Board of Commissioners and Board of Directors; and
4. The balance between fixed and variable benefits.

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




         Allowances in
                                                    Other                                                                    Discretionary
          the Form of                                                                       Salary
                                                 Allowances                                                                      Bonus
             Natura




Information concerning the amount of remuneration received by the Company’s Board of Commissioners and the Board of
Directors in 2023 is disclosed as follows:

                                                                                                                                (in millions of Rupiah)

                                Recipient                                                            Total Remuneration*
 The Board of Commissioners                                                                                    30,782
 The Board of Directors                                                                                        57,639
 Total                                                                                                         88,421

* Other than remuneration received by the Board of Commissioners and the Board of Directors of the Company’s Subsidiaries.




Sharia Supervisory Board
Up until the end of 2023, the Company does not have a Sharia Supervisory Board under the considerations that the products
and services produced, the management system, fund management, and investment policies carried out by the Company
have not fully implemented sharia principles.




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Committees Under the Board of
Commissioners
In carrying out its supervisory duties, the Board of Commissioners is assisted by supporting organs under the Board of
Commissioners which consists of 3 organs, namely the Audit Committee, the Nomination and Remuneration Committee, and
the Good Corporate Governance Committee.



The Audit Committee

The Audit Committee is a Company organ established by the Board of Commissioners to assist in the implementation of the
monitoring and evaluating function of the implementation of an adequate internal control system; ensuring the quality of
financial disclosure and reporting; reviewing the scope, accuracy, independence and objectivity of public accountant; and
monitoring compliance with applicable laws and regulations.

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

Composition of the Audit Committee
Based on the Audit Committee Charter, the composition of the Audit Committee comprises of at least 3 people, including an
Independent Commissioner as the Chairman and members from independent parties. One of the Audit Committee members
has accounting and/or finance expertise and experience in, and the others have law or capital markets expertise, as well as a
good understanding of corporate governance. In addition, all members of the Audit Committee must meet the competency
and independence requirements as stipulated in POJK No. 55/POJK.04/2015 concerning the Establishment and Working
Guidelines of Audit Committees.

The appointment and dismissal of the Audit Committee members is carried out by the Board of Commissioners by virtue
of its decree. Dismissal of the Audit Committee members may be made if the concerned person reaches the expiry of his/
her term of office and is dismissed based on the Board of Commissioners’ decree for not achieving the predetermined
performance standard and/or for incompetence in carrying out his/her duties. In 2023, the composition of the Audit Committee
consisted of 3 members, namely:

                            Name                                                         Position
 Mohammad Noor Rachman Soejoeti                                              Chairman of the Audit Committee
 Fitradewata Teramihardja                                                     Member of the Audit Committee
 Sammy TS Lalamentik                                                          Member of the Audit Committee



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


                                   MOHAMMAD NOOR RACHMAN SOEJOETI
                                            Chairman of the Audit Committee

        Term of Office and Basis of Appointment
        2021 – 2026:
        The Board of Commissioners Decree No. 023/AA/DIR/VI/2021 dated August 16, 2021.
The full profile of the Chairman of the Audit Committee can be found in the Profile of the Board of Commissioners section
of this Annual Report.




                                                             2023 Annual Report - PT Avia Avian Tbk            125
Page 128
                                        Fitradewata
                                        Teramihardja
                                        Member of the Audit Committee

                                        Indonesian, 55 years old.



                                                 Work Experiences
                                                 • Senior Manager in Public Accounting Firm of Prasetio Utomo
                                                   & Co (Arthur Andersen Jakarta), Arthur Andersen (Melbourne,
                                                   Australia), Ernst & Young (Jakarta) (1991 - 2005);
                                                 • Managing Partner in Public Accounting Firm of Fitradewata
                                                   Teramihardja (Jakarta) (2005 - 2008);
                                                 • Member of the Board of Professional Standards of Certified
                                                   Public Accountants (Dewan Standar Profesional Akuntan Publik or
                                                   “DSPAP”) (2007 - 2008);
                                                 • Deputy Managing Partner of Public Accounting Firm of Tjahjadi,
                                                   Pradhono, Teramihardja (Jakarta) (Member Firm of Morison
                                                   International) (2008 - 2011); and
                                                 • Member of the Audit Committee of PT Mulia Boga Raya Tbk
                                                   (2019 – 2023).

 Term of Office and Basis of                     Dual Appointments
 Appointment
                                                 • Founding Partner of Public Accounting Firm of Teramihardja,
 2021 - 2026:                                      Pradhono & Chandra (Jakarta) (Member Firm of Rodl International
 The Board of Commissioners Decree                 GmbH) (2011 - present);
 No. 023/AA/DIR/VI/2021 dated                    • Professional Organization Activities:
 August 16, 2021.                                  - Indonesian Institute of Accountants (Ikatan Akuntan Indonesia
                                                     or “IAI”);
 Educational Background                            - Indonesian Institute of Certified Public Accountants (Institut
 Bachelor of Economics with a                        Akuntan Publik Indonesia or “IAPI”); and
 major in Accounting from Trisakti                 - ASEAN CPA;
 University, Jakarta, 1991.                      • Member of the Related Party Transaction Committee of
                                                   the Company (2022 – present);
                                                 • Independent Commissioner of PT Garudafood Putra Putri Jaya
 Certifications                                    Tbk (2023 – present); and
 • Certified Public Accountant (CPA);            • Member of the Audit Committee of PT Nusantara Sejahtera
 • Certified ASEAN Public Accountant               Raya Tbk (2023 - present).
   (ASEAN CPA);
 • Certified Chartered Accountant                Education/Training in 2023
   (CA); and
 • State Registered Accountant.                  • Continuing Education Training (Pelatihan Pendidikan Berkelanjutan
                                                   or PPL) of the Financial Services Authority (Otoritas Jasa Keuangan
                                                   or “OJK”), Capital Market - Implementation of Engagement
 Affiliation                                       Quality Control Review (EQCR) and the Role of Communication/
 Is not an affiliate of members                    Consultation to Regulators in accordance with OJK Regulation
 of the Board of Commissioners,                    No. 13 Year 2017 to Mitigate Audit Risk by OJK and IAPI;
 members of the Board of Directors,              • KEPAP 2021 - Code of Ethics 2021, Noclar, and Indepedence in
 as well as Main and Controlling                   Audit Engagements by IAPI;
 Shareholders.                                   • SP2DK 2023 - How Taxpayers Respond Appropriately? by IAPI;
                                                 • PPL Public Accountant PPPK 2023 - Sharing Findings of KAP
                                                   Audit Results by Financial Professional Development Center
                                                   (Pusat Pembinaan Profesi Keuangan or “PPPK”) and Risk Mitigation
                                                   by PPPK of the Ministry of Finance and IAPI; and
                                                 • Risk Management for Public Accountant Firms (Based on
                                                   ISO 31000:2018) by IAPI.




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                                                                                 Good Corporate Governance




                                        Sammy TS Lalamentik
                                        Member of the Audit Committee

                                        Indonesian, 61 years old.



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


                                                 Work Experiences
                                                 • Examiner of Inspectorate General of the Ministry of Finance
                                                   (1984 - 1989);
                                                 • Executing officer of Bureau of Brokerage Development for the
                                                   Capital Market Implementing Agencies (1989 - 1991);
                                                 • Head of Sub Division of Bureau of Corporate Financial Assessment
                                                   I - Capital Market Implementing Agencies Services Sector
                                                   (1991 - 2000);
                                                 • Head of Sub Division of Bureau of Accounting Standards and
                                                   Disclosure of Capital Market Supervisory Agencies (2000 - 2006);
                                                 • Head of Sub Division of Bureau of Real Sector Company Valuation
                                                   of Capital Market and Financial Institutions Supervisory Agencies
Educational Background
                                                   (2006 - 2012);
Diploma III in Accounting from                   • Head of Sub Division of the Directorate of Real Sector Company
Sekolah Tinggi Akuntansi Negara                    Valuation of Financial Services Authority – Capital Market Sector
(“STAN”), 1984.                                    Supervision (2013 - 2014);
                                                 • Head of Sub Division of the Directorate of Capital Market
Certifications                                     Supporting Institutions and Professionals of financial Services
                                                   Authority - PM2B Department (2014 - 2020); and
Financial Services Sector Supervisory
                                                 • Ad interim Head of Accountant Compliance – DLPM of Financial
Certification (Sektor Jasa Keuangan
                                                   Services Authority – PM2B Department (2016 - 2018).
or “SJK”) Level 2.


Affiliation                                      Dual Appointments
                                                 • Commissioner of PT Kredit Rating Indonesia (2020 - present);
Is not an affiliate of members
                                                 • Independent Commissioner of PT Super Energy Tbk
of the Board of Commissioners,
                                                   (2020 - present);
members of the Board of Directors,
                                                 • Independent Commissioner of PT Perdana Karya Perkasa
as well as Main and Controlling
                                                   (2021 - present); and
Shareholders.
                                                 • Member of the Audit Committee of PT Nusantara Sejahtera
                                                   Raya Tbk (2023 – present).


                                                 Education/Training in 2023
                                                 -




                                                     2023 Annual Report - PT Avia Avian Tbk           127
Page 130
Duties and Responsibilities of the Audit Committee
Information regarding the duties and responsibilities of the Audit Committee under the Audit Committee Charter is described
as follows:
1. Reviewing the financial information to be issued by the Company to the public and/or authorities, including financial
    statements, projections, and other reports related to the Company’s financial information;
2. Reviewing compliance with internal regulations as well as laws and regulations related to the Company’s activities, and
    submitting the reviews to the Board of Commissioners;
3. Providing independent opinions in the event of differing opinions between the management and the accountant on the
    services provided;
4. Providing recommendations to the Board of Commissioners regarding the appointment of a Public Accountant based on
    independence, scope of assignment, and remuneration for services;
5. Discussing audit plans including the nature and scope of the audit;
6. Reviewing the adequacy of the audit by taking all significant risks into consideration;
7. Reviewing the planning, implementation, and supervising the execution of follow-ups by the Board of Directors on the
    findings of both internal and external auditors;
8. Reviewing and reporting, to the Board of Commissioners, complaints related to the Company’s accounting and financial
    reporting processes, including allegations of errors in the resolutions of the Board of Directors meeting or deviations in the
    implementation of the resolutions of the Board of Directors meeting;
9. Conducting inspections, either by the Audit Committee itself or by assigning third parties, if necessary;
10. Reviewing and providing advice to the Board of Commissioners regarding potential conflicts of interest in the Company;
11. Assisting the Board of Commissioners in carrying out active supervision on the compliance function by: (i) evaluating the
    implementation of the Company’s compliance function with internal regulations as well as laws and regulations relating
    to the Company’s activities at least twice in a year; and (ii) providing suggestions in order to improve the quality of the
    Company’s compliance function;
12. Providing recommendations to the Board of Commissioners regarding the appointment, dismissal, and performance
    assessment of the Chairman of the Internal Audit Unit;
13. Maintaining the confidentiality of the Company’s documents, data, and information; and
14. Reviewing the implementation of risk management performed by the Board of Directors.

Statement of Independence of the Audit Committee
The Audit Committee always upholds the principles of independence and prudence in carrying out its duties and responsibilities.
This is evidenced by the Chairman of the Audit Committee who originally served as Independent Commissioner, while the 2 members
of the Audit Committee are personnel from external and independent parties. All members of the Audit Committee have met
the independence requirements in accordance with GCG regulations and practices, i.e. that members of the Audit Committee:
1. Are not parties who work or have the authority and responsibility to plan, lead, control, or supervise the Company’s
    activities within the last 6 months;
2. Do not hold the Company’s shares either directly or indirectly in the Company;
3. Have no affiliation with the Board of Commissioners, the Board of Directors, or Main and Controlling Shareholders of the
    Company; and
4. Have no business relationship, either directly or indirectly, related to the Company’s business activities.

The Audit Committee Meeting
Meeting Policy
Based on the Audit Committee Charter, the Audit Committee is required to convene a meeting no fewer than once in 3 months.
The meeting may only be convened if it is attended by at least 51% of the total members, including an Independent Commissioner.

Meeting Convention
Throughout 2023, the Audit Committee has convened 6 meetings. Information regarding the number of meetings and meeting
attendance by members of the Audit Committee is as follows:

                                                                            Number of             Total           Attendance
               Name                               Position
                                                                             Meeting           Attendance             (%)
 Mohammad Noor Rachman Soejoeti       Chairman of the Audit Committee             6                  6               100.00
 Fitradewata Teramihardja             Member of the Audit Committee               6                  6               100.00
 Sammy TS Lalamentik                  Member of the Audit Committee               6                  6               100.00




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Competence Development of the Audit Committee
The Company continually strives to improve the knowledge and competence of the Audit Committee through the
implementation of competence development programs attended by members of the Audit Committee every year. Information
related to the competence development programs participated by members of the Company’s Audit Committee throughout
2023 has been disclosed in the Profile section of each member of the Audit Committee.

Performance of the Audit Committee’s Duties
Information regarding performance of the Audit Committee’s duties in 2023 is described as follows:
1. Discussing the year-end audit results of the Consolidated Financial Statements of the Company and its Subsidiaries for
    the financial year ended December 31, 2022, by the Independent Auditor, KAP Tanudiredja, Wibisana, Rintis & Rekan
    (a member firm of the global PwC network);
2. Reviewing the Consolidated Financial Statements of the Company and its Subsidiaries for the March 31, 2023 period;
3. Evaluating the implementation of provision of audit services on annual historical financial information by Public
    Accountant and/or Public Accounting Firm for the 2022 financial year;
4. Discussing the Consolidated Financial Statements of the Company and its Subsidiaries for the June 30, 2023 period;
5. Discussing the Consolidated Financial Statements of the Company and its Subsidiaries for the September 30, 2023 period;
6. Providing recommendations for the appointment of a Public Accounting Firm that will audit the Financial Statements for
    the 2023 financial year;
7. Discussing the progress report on the appointment of Public Accountant and/or Public Accounting Firm for the 2023
    financial year;
8. Reviewing the independence and objectivity of the Public Accounting Firm in conducting the audit for the 2023 financial year;
9. Reviewing the implementation of the Internal Audit Unit’s work program and providing input to improve the efficiency and
    effectiveness of the Internal Audit Unit;
10. Reviewing audit findings, both from internal and external auditors, and monitoring follow-up actions on audit findings; and
11. Reviewing the effectiveness of the internal control system and providing input to encourage the creation of an effective
    internal control system.



The Nomination and Remuneration Committee

The Nomination and Remuneration Committee is a Company organ established by the Board of Commissioners to assist in
the implementation of the supervisory function over the implementation of the nomination and remuneration processes to
ensure that they run objectively, effectively, and efficiently, as well as to improve the quality, competence, and responsibilities
of the Board of Commissioners and the Board of Directors in achieving Vision and Mission of the Company.

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

The Composition of Nomination and Remuneration Committee
In accordance with the Nomination and Remuneration Committee Charter, composition of the Nomination and Remuneration
Committee comprises at least 3 members, chaired by an Independent Commissioner of the Company. The appointment and
dismissal of the Nomination and Remuneration Committee members is carried out by the Board of Commissioners by virtue
of its decree. Dismissal of the Nomination and Remuneration Committee members may be made if the concerned person
reaches the expiry of his/her term of office and is dismissed based on the Board of Commissioners’ decision for not achieving
the predetermined performance standard and/or for incompetence in carrying out his/her duties. In 2023, the composition of
the Nomination and Remuneration Committee consisted of 3 members, namely:


                             Name                                                            Position

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




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


                                 MOHAMMAD NOOR RACHMAN SOEJOETI
                             Chairman of the Nomination and Remuneration Committee

        Term of Office and Basis of Appointment
        2021 – 2026:
        The Board of Commissioners Decree No. 023/AA/DIR/VI/2021 dated August 16, 2021.
The full profile of the Chairman of the Nomination and Remuneration Committee can be found in the Profile of the Board of
Commissioners section of this Annual Report.


                                              HERMANTO TANOKO
                              Member of the Nomination and Remuneration Committee

        Term of Office and Basis of Appointment
        2021 – 2026:
        The Board of Commissioners Decree No. 023/AA/DIR/VI/2021 dated August 16, 2021.
The full profile of the Chairman of the Nomination and Remuneration Committee can be found in the Profile of the Board of
Commissioners section of this Annual Report.



                                               Iwan Sigit
                                               Member of the Nomination and Remuneration
                                               Committee

                                               Indonesian, 51 years old.



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

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


                                                        Work Experiences
                                                        Operational General Manager of the Company (2017 - 2021).


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

        Affiliation                                     Education/Training in 2023
        Is not an affiliate of members                  • The Cooler Earth Sustainability Summit 2023 Jakarta:
        of the Board of Commissioners,                    “Sustainability in Action: Opportunities for a Better Tomorrow in
        members of the Board of Directors,                Indonesia” by PT Bank CIMB Niaga Tbk; and
        as well as Main and Controlling                 • Implementation of Quality Control Circle (QCC) by Lentera
        Shareholders.                                     Prokualita Karsa Teknik dan Manajemen Industri.




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

Statement of Independence of the Nomination and Remuneration Committee
The Nomination and Remuneration Committee is required to carry out its duties and responsibilities professionally and
independently by taking into account the principles of independence and prudence. The Company warrants that the entire
members of the Nomination and Remuneration Committee do not have conflicts of interest with other parties in the company’s
organs and are able to carry out their duties independently.

The Nomination and Remuneration Committee Meeting
Meeting Policy
Based on the Nomination and Remuneration Committee Charter, the Nomination and Remuneration Committee meetings
are convened periodically, no fewer than once in 4 months. Meetings may only be convened if attended by a majority of the
members of the Nomination and Remuneration Committee.

Meeting Convention
Throughout 2023, the Nomination and Remuneration Committee has convened 3 meetings. Information regarding the number
of meetings and meeting attendance by members of the Nomination and Remuneration Committee is described as follows:

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


Competence Development of the Nomination and Remuneration Committee
The Company continually strives to improve the knowledge and competence of the Nomination and Remuneration Committee
through the implementation of competence development programs attended by the Nomination and Remuneration
Committee members every year. Information related to the competence development programs participated by members of
the Company’s Nomination and Remuneration Committee throughout 2023 has been disclosed in the Profile section of each
member of the Nomination and Remuneration Committee.




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Performance of the Nomination and Remuneration Committee’s Duties
Information regarding the performance of the Nomination and Remuneration Committee’s duties and responsibilities in 2023
is described as follows:
1. Reviewing the remuneration of the Company’s Board of Commissioners and Board of Directors for 2023;
2. Discussing the review of self-assessment results by each Board of Commissioners Member regarding the collective
    performance of the Board of Commissioners and the Board of Directors for the 2022 financial year;
3. Assisting the Board of Commissioners in performance assessment of the Board of Commissioners and the Board of Directors
    for 2023; and
4. Performing other duties assigned by the Company’s Board of Commissioners.



The Good Corporate Governance Committee

The Good Corporate Governance Committee is a Company organ established by the Board of Commissioners to assist in
implementing the supervisory function of enforcing the Company’s Business Ethics and Code of Conduct. The Good Corporate
Governance Committee has the duties and responsibilities to receive and follow up on reports of any complaint concerning
violations of Business Ethics and Code of Conduct committed by personnel of the Company.

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

Composition of the Good Corporate Governance Committee
The Company has established the Good Corporate Governance Committee with a term of office of 3 years. The appointment
and dismissal of members of the Good Corporate Governance Committee is based on the resolutions of the Board of
Commissioners. The Good Corporate Governance Committee is chaired by the Operational Director with permanent members
comprising of the Financial Director and Deputy Operational Director. The Good Corporate Governance Committee also
consists of Ad Hoc members, i.e. the division leaders within the Company’s organization. In 2023, the composition of the Good
Corporate Governance Committee consists of 3 people, namely:

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


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


                                           ROBERT CHRISTIAN TANOKO
                                       Chairman of the Good Corporate Governance

         Term of Office and Basis of Appointment
         2023 – 2026: Minutes of Meeting of the Board of Commissioners of the Company No. 004/AA/BAR/KOM/VIII/2023
         dated August 16, 2023.
The full profile of the Chairman of the Good Corporate Governance Committee can be found in the Profile of the Board of
Directors section of this Annual Report.


                                               KURNIA HADI SINANTO
                                       Member of the Good Corporate Governance

         Term of Office and Basis of Appointment
         2023 – 2026: Minutes of Meeting of the Board of Commissioners of the Company No. 004/AA/BAR/KOM/VIII/2023
         dated August 16, 2023.
The full profile of the Member of the Good Corporate Governance Committee can be found in the Profile of the Board of
Directors section of this Annual Report.




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                                                        IWAN SIGIT
                                        Member of the Good Corporate Governance

         Term of Office and Basis of Appointment
         2023 – 2026: Minutes of Meeting of the Board of Commissioners of the Company No. 004/AA/BAR/KOM/VIII/2023
         dated August 16, 2023
The full profile of the Member of the Good Corporate Governance Committee can be found in the Profile of Member of the
Nomination and Remuneration Committee section in this Annual Report.

Duties and Responsibilities of the Good Corporate Governance Committee
Information regarding the duties and responsibilities of the Good Corporate Governance Committee under the Company’s
Business Ethics and Code of Conduct is described as follows:
1. Conducting socialization activities to enforce the Company’s Business Ethics and Code of Conduct to all company personnel
    as a form of prevention of violations of the Company’s Business Ethics and Code of Conduct;
2. Receiving questions that arise from company personnel regarding the contents of the Company’s Business Ethics and Code
    of Conduct;
3. Receiving reports of any complaints against violations of the Company’s Business Ethics and Code of Conduct by company
    personnel;
4. Following up on any reports of violations of the Company’s Business Ethics and Code of Conduct; and
5. Providing recommendations on resolutions of violations of the Company’s Business Ethics and Code of Conduct to the
    Board of Directors, including sanctions that will be imposed.

Statement of Independence of the Good Corporate Governance Committee
The Good Corporate Governance Committee is required to carry out its duties and responsibilities professionally and
independently by taking into account the principles of independence and prudence. The Company warrants that the entire
members of the Good Corporate Governance Committee do not have conflicts of interest with other parties in the company’s
organs and are able to independently carry out their duties.

The Good Corporate Governance Committee Meeting
Meeting Policy
The Good Corporate Governance Committee meetings are convened periodically, as necessary in enforcing Business Ethics
and Code of Conduct.

Meeting Convention
Throughout 2023, the Good Corporate Governance Committee has convened 3 meetings. Information regarding the number
of meetings and meeting attendance by members of the Good Corporate Governance Committee is described as follows:

                                                                                    Number of       Total     Attendance
         Name                                   Position
                                                                                    Meetings     Attendance       (%)
 Robert Christian Tanoko   Chairman of the Good Corporate Governance Committee           3            3          100.00
 Kurnia Hadi Sinanto       Member of the Good Corporate Governance Committee             3            3          100.00
 Iwan Sigit                Member of the Good Corporate Governance Committee             3            3          100.00


Competence Development of the Good Corporate Governance Committee
The Company continually strive to improve the knowledge and competence of the Good Corporate Governance Committee
through the implementation of competency development programs attended by Good Corporate Governance Committee
members every year. Information related to the competence development programs participated by members of the Company’s
Good Corporate Governance Committee throughout 2023 has been disclosed in the Profile section of each member of the
Good Corporate Governance Committee.




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Page 136
Implementation of Duties of the Good Corporate Governance Committee
Information regarding the implementation of the duties and responsibilities of the Good Corporate Governance Committee
throughout 2023 is described as follows:
1. Discussed a summary of environmental, social and governance data for the Company and Subsidiaries for the period April
    30, 2023, June 30, 2023, and September 30, 2023 in connection with the Company’s commitment to running a business
    that is responsible for sustainability;
2. Discussed the result of assessment from EcoVadis, an international certification body, on the Company’s sustainability
    performance in environmental, labor and human rights, ethics, and procurement practices; and
3. Ensured that all complaints of violations received had been followed up through in-depth investigations based on the facts
    obtained and protected the confidentiality of the reporter’s identity.




Committees Under the Board of Directors

The Related Party Transaction Committee

The Related Party Transaction Committee is a Company organ established by the Board of Directors to assist in implementing
the Company’s management functions, particularly in terms of managing the Company’s transactions with related parties.
The Related Party Transaction Committee assists the Board of Directors in ensuring that every related party transaction to be
conducted by the Company is in accordance with generally accepted business practices, applicable laws and regulations, and
meet the principles of fair transactions.

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

Composition of the Related Party Transaction Committee
The appointment and dismissal of the Related Party Transaction Committee members is carried out by the Board of Directors.
Dismissal of the Related Party Transaction Committee members may be made if the concerned person reaches the expiry of his/
her term of office and is dismissed based on the Board of Directors’ decision for not achieving the predetemined performance
standard and/or for incompetence in carrying out his/her duties. In 2023, the composition of the Related Party Transaction
Committee consisted of 3 members, namely:

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

* Term of office as Member of the Related Party Transactions Committee commenced on June 14, 2023 replacing Mr. Devyka Oktima S.


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


                                                        KURNIA HADI SINANTO
                                        Chairman of the Related Party Transaction Committee

         Term of Office and Basis of Appointment
         2022 – 2025:
         The Board of Directors Decree No. 008/AA/SK/DIR/V/2022 dated May 19, 2022.
The full profile of the Chairman of the Related Party Transaction Committee can be found in the Profile of the Board of
Directors section of this Annual Report.




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                                                 FITRADEWATA TERAMIHARDJA
                                         Member of the Related Party Transaction Committee

         Term of Office and Basis of Appointment
         2022 – 2025:
         The Board of Directors Decree No. 008/AA/SK/DIR/V/2022 dated May 19, 2022.
The full profile of the Member of the Related Party Transaction Committee can be found in the Profile of the Audit Committee
section of this Annual Report.




                                                           Bobby Septian Yahya*
                                                           Member of the Related Party Transaction
                                                           Committee

                                                           Indonesian, 31 years old.



                                                                      Term of Office and Basis of Appointment
                                                                      2023 – 2025:
                                                                      The Board of Directors Decree No. 008/AA/SK/DIR/VI/2022 dated
                                                                      June 14, 2023.


                                                                      Educational Background
                                                                      Bachelor of Accounting from Bina Nusantara University, Jakarta, in
                                                                      2014.


                                                                      Certification
                                                                      • Practical Implementation of Operational Audit from Yayasan
                                                                        Pendidikan Internal Audit; and
                                                                      • Risk Based Internal Audit from Yayasan Pendidikan Internal Audit.

          Affilation
                                                                      Work Experiences
          Is not an affiliate of members
                                                                      • Internal Audit of PT Combiphar (2015 – 2018);
          of the Board of Commissioners,
                                                                      • Internal Audit Senior of PT Sayap Mas Utama (Wings Corp)
          members of the Board of Directors,
                                                                        (2018-2022);
          as well as Main and Controlling
                                                                      • Assistant Manager of Special Investigations and Forensic Audit of
          Shareholders.
                                                                        PT Sinarmas Agro Resources and Technology Tbk (2022).


                                                                      Dual Appointments
                                                                      Head of Internal Audit Unit of the Company (2023 – present).


                                                                      Education/Training in 2023
                                                                      This information is presented in the Competence Development of
                                                                      the Internal Audit Unit section of this Annual Report.

* Term of office as Member of the Related Party Transactions Committee commenced on June 14, 2023 replacing Mr. Devyka Oktima S.




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Duties and Responsibilities of the Related Party Transaction Committee
Information regarding the duties and responsibilities of the Related Party Transaction Committee is described as follows:
1. Providing recommendations to the Board of Directors regarding affiliated transactions conducted by the Company, such
    that they are in accordance with the generally accepted business practices, applicable laws and regulations, and meet the
    principles of fair transactions;
2. Assisting the Board of Directors to ensure that transactions conducted with related parties are not detrimental to the
    interests of the Company and the Company’s Independent Shareholders;
3. Cooperating with the Corporate Secretary, Finance Team, and Legal Team of the Company in discussing and deliberating
    affiliated transaction plans to be undertaken by the Company; and
4. Conducting special inspections related to affiliated transactions, if necessary.

Independence Statement of the Related Party Transaction Committee
The Related Party Transaction Committee is required to carry out its duties and responsibilities professionally and independently
by taking into account the principles of independence and prudence. The Company warrants that the entire members of the
Related Party Transaction Committee do not have conflicts of interest with other parties in the company’s organs and are able
to independently carry out their duties.

The Related Party Transaction Committee Meeting
Meeting Policy
The Related Party Transaction Committee meetings are convened periodically, no fewer than once in 4 months. Meetings may
only be convened if attended by a majority of the members of the Related Party Transaction Committee.

Meeting Convention
Throughout 2023, the Related Party Transaction Committee has convened 4 meetings. Information regarding the number of
meetings and meeting attendance by members of the Related Party Transaction Committee is described as follows:

                                                                                                Number of            Total         Attendance
           Name                                          Position
                                                                                                Meetings          Attendance           (%)
 Kurnia Hadi Sinanto             Chairman of the Related Party Transaction Committee                  4                  4           100.00
 Fitradewata Teramihardja        Member of the Related Party Transaction Committee                    4                  4           100.00
 Bobby Septian Yahya*            Member of the Related Party Transaction Committee                    4                  3            75.00

* Term of office as Member of the Related Party Transactions Committee commenced on June 14, 2023 replacing Mr. Devyka Oktima S.


Competence Development of the Related Party Transaction Committee
The Company continually strives to improve the knowledge and competence of the Related Party Transaction Committee
through the implementation of competence development programs attended by the Related Party Transaction Committee
members every year. Information related to the competence development program participated by members of the Company’s
Related Party Transaction Committee throughout 2023 has been disclosed in the Profile section of each member of the Related
Party Transaction Committee.

Implementation of Duties and Responsibilities of the Related Party Transaction Committee
Information regarding the implementation of the duties and responsibilities of the Related Party Transaction Committee
throughout 2023 is described as follows:
1. Discuss periodically every quarter the affiliate transactions, including:
    a. purchase of PVC pipe products by PT Tirtakencana Tatawarna (distributor) from PT Avia Avian Industri Pipa (producer);
    b. purchase of plastic packaging for finished goods by the Company from PT Mitra Mulia Makmur;
    c. purchase of supporting building material products by PT Tirtakencana Tatawarna (distributor) from PT Kencana
       Lintasindo Internasional (producer);
    d. warehouse/depot rental for distribution activities by PT Tirtakencana Tatawarna from PT Sarana Depo Kencana; and
    e. purchase of calcium carbonate by the Company from PT Panca Kalsiumindo Perkasa.
2. Discuss affiliate transaction plans as follows:
    a. Amendment of Warehouse Rental Agreement between PT Tirtakencana Tatawarna and PT Sarana Depo Kencana; and
    b. Amendment of Building Lease Agreement owned by PT Tirtakencana Tatawarna.




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The Corporate Secretary
The Corporate Secretary is a Company organ whose duties and responsibilities are to support the implementation of the
Board of Directors’ functions related to communication relations between the Company’s organs, relationships between the
Company and Shareholders, regulators and other stakeholders, as well as ensuring the Company’s compliance with laws and
regulations in the capital market. The Corporate Secretary is also in charge of ensuring the availability of public information
that may be accessed by stakeholders according to reasonable needs.



The Corporate Secretary Charter

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



Party Appointing and Dismissing the Corporate Secretary

The Corporate Secretary is directly responsible to the Board of Directors and is appointed and dismissed by a Board of Directors
Decree. Each appointment, replacement, or dismissal of the Corporate Secretary shall be notified to the Financial Services Authority.



Profile of the Corporate Secretary


                                                    Hera Septi Astuti
                                                    The Corporate Secretary

                                                    Indonesian, 38 years old, domiciled in Jakarta.



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


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


                                                              Certification
                                                              • The Advocate Professional Exam (“UPA”) – The Indonesian
                                                                Advocates Association (“PERADI”); and
                                                              • Basic 1 Course of Capital Market Legal Consultant Professional
                                                                Education - Capital Market Legal Consultant Association
                                                                (Himpunan Konsultan Hukum Pasar Modal or “HKHPM”) and FHP
                                                                Education of Law (“FHP”).




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Page 140
         Work Experiences
         • Legal Staff of Notary Office of Dr. Misahardi Wilamarta, S.H., M.Kn. (2008 - 2010);
         • Senior Legal of PT Profesional Telekomunikasi Indonesia (2010 - 2017);
         • Corporate Secretary Manager of PT Graha Layar Prima Tbk (2018 - 2020); and
         • Corporate Secretary Manager of the Company (2021 - 2022).

         Dual Appointments
         -


Duties and Responsibilities of the Corporate Secretary

Information regarding the duties and responsibilities of the Corporate Secretary under the Corporate Secretary Charter is
described as follows:
1. Keeping abreast of capital market developments, in particular the prevailing laws and regulations in the capital market
    sector;
2. Providing input to the Board of Commissioners and the Board of Directors concerning compliance with the laws and
    regulations in the capital market sector;
3. Disclosing information to the public, including the availability of information on the Company’s website;
4. Submitting reports to the Financial Services Authority in a timely manner;
5. Convening and documenting GMS and meetings of the Board of Commissioners and/or the Board of Directors;
6. Conducting orientation programs for the Board of Commissioners and/or the Board of Directors;
7. Coordinating preparation and submission processes of the Annual Report and Sustainability Report;
8. Acting as the liaison between the Company and the Shareholders, the Financial Services Authority, and other stakeholders;
9. Representing the Company in correspondences with capital market authorities in accordance with the authority granted
    by the Company; and
10. Submitting periodic reports, no fewer than once in a year, regarding the implementation of the Corporate Secretary
    functions to the Board of Directors, copied to the Board of Commissioners.



The Corporate Secretary Competence Development

The Company enrolls the Corporate Secretary in various competence development activities, both through training and
education, to sustainably improve the insight and competence of the Corporate Secretary. Information related to competence
development programs attended by the Corporate Secretary in 2023, among others, is described as follows:

         Date                                            Name of Seminar                                             Organizer
                           Dissemination of Financial Services Authority (Otoritas Jasa Keuangan or “OJK”)      Indonesia Corporate
    January 12, 2023       Regulation No. 14/POJK.04/2022 concerning Submission of Periodic Financial Reports   Secretary Association
                           of Issuers or Public Companies.                                                             (“ICSA”)
    January 26, 2023       Indonesia Economic Outlook 2023: Opportunities and Challenge.                                 ICSA
                           In-depth discussion of OJK Circular Letter No. 16/SEOJK.04/2021 concerning the
   February 28, 2023                                                                                                 OJK & ICSA
                           Form and Content of the Annual Report of Issuers or Public Companies.
                                                                                                                   Indonesia Central
                                                                                                                 Securities Depository
    March 14, 2023         GMS convention through eASY.KSEI.
                                                                                                                (Kustodian Sentral Efek
                                                                                                                  Indonesia or “KSEI”)
                           In-depth discussion on Indonesia Stock Exchange Regulation No. I-E concerning
      April 5, 2023                                                                                                      ICSA
                           Obligation to Submit Information.
     May 30, 2023          Webinar on Effective Risk Management for Corporate Secretary.                                 ICSA
                           In-depth discussion on OJK Regulation No. 14/POJK.04/2019 concerning
      June 8, 2023         Amendments to OJK Regulation No. 32/POJK.04/2015 concerning Capital Increase                  ICSA
                           of Public Companies with Pre-emptive Rights.
                           Strengthening the Board's Succession: A Framework for Board Performance &
     June 27, 2023                                                                                                       ICSA
                           Evaluation.
                           In-depth discussion of OJK Regulation No. 42/POJK.04/2020 concerning Affiliated
     July 13, 2023         Transactions and Conflicts of Interest, and OJK Regulation No. 17/POJK.04/2020                ICSA
                           concerning Material Transactions and Changes in Business Activities.




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         Date                                           Name of Seminar                                           Organizer
                         Implementation of Law No. 4 of 2023 on Development and Strengthening of the
      July 20 2023       Financial Sector (“P2SK Law”) in the context of Strengthening the Capital Market             OJK
                         Sector.
                         Discussion Workshop on the Review of OJK Regulation No. 43/POJK.04/2020,           Indonesian Public Listed
                         OJK Regulation No. 14/POJK.04/2019, POJK No. 49/POJK.04/2020, and POJK              Companies Association
     July 31, 2023
                         No. 31/POJK.04/2017 as well as Discussion on Strategy and Implementation of the        (Asosiasi Emiten
                         P2SK Law.                                                                             Indonesia or “AEI”)
                         Deeper Understanding of the P2SK Law Arrangements in the context of
    August 10, 2023                                                                                                   OJK
                         Strengthening the Non-Banking Financial Industry (“IKNB”).
                         Dessemination on OJK Circular Letter No. 33/SEOJK.04/2022 concerning Guidelines
    August 24, 2023                                                                                                  ICSA
                         for Implementing Securities Offerings Classified as Non-Public Offerings.
  September 13, 2023     Sustainability in Action: Opportunities for a Better Tomorrow in Indonesia.              CIMB Niaga
                                                                                                               Indonesia Stock
  September 20, 2023     Launch of Statistical Publication of IDX New Listing Information.
                                                                                                               Exchange (“IDX”)
   October 19, 2023      Webinar Managing Environmental, Social, and Governance Risk and Opportunities.               OJK
                         Dissemination of General Guidelines for Governance of Indonesian Family-
                         Owned Businesses (Pedoman Umum Governansi Bisnis Milik Keluarga Indonesia or
   November 2, 2023      “PUG BMKI”) by the National Committee on Governance Policy (Komite Nasional                 KNKG
                         Kebijakan Governansi or “KNKG”) on the theme “Assuring Family Owned Business
                         Sustainability By Building Trust Through Governance”.
                         Basic Education Workshop on the Board of Commissioners, the Board of Directors,
   November 4, 2023                                                                                                  ICSA
                         and the Annual Report.
   November 9, 2023      ASEAN Corporate Governance Scorecard (“ACGS”) Revised October 2023.                         ICSA
                         Basic Education Workshop on Good Corporate Governance & ACGS and Corporate
  November 11, 2023      Actions (Initial Public Offering, Material Transactions and Changes in Business             ICSA
                         Activities, Affiliated Transactions, and Conflict of Interest Transactions).
                         Basic Education Workshop on Corporate Action (Dividend, Management &
  November 18, 2023      Employee Stock Option Program, Pre-emptive Rights & Issuance of New Shares                  ICSA
                         Without Pre-emptive Rights), and Finance for Non-Finance.
                         In-depth understanding of OJK Regulation No. 15/POJK.04/2020 on the Plan and
  November 23, 2023                                                                                                  ICSA
                         Implementation of General Meeting of Shareholders of Public Companies.
  November 25, 2023      Basic Education Workshop on Tax for Non-Tax, and Sustainability Report.                     ICSA
  December 20, 2023      Dissemination of ACGS 2023 Criteria and Preparation for ACGS 2024 Assessment.                OJK



Implementation of the Duties of the Corporate Secretary

Information regarding the implementation of the duties and responsibilities of the Corporate Secretary throughout 2023 is
described as follows:
1. Coordinated meetings of the Board of Directors and/or the Board of Commissioners, the Audit Committee meetings, the
    Nomination and Remuneration Committee meetings, the Good Corporate Governance Committee meetings, the Related
    Party Transaction Committee meetings, and prepared minutes for these meetings;
2. Kept abreast of capital market regulations and ensured the Company’s compliance with applicable regulations, which
    included publishing 12 monthly reports on share ownership registration activities, 4 Financial Reports, 1 Annual Report,
    and 1 Sustainability Report throughout 2023;
3. Improved competence by attending various trainings;
4. Conducted correspondences with capital market regulators (Financial Services Authority and Indonesia Stock Exchange)
    and other supporting institutions;
5. Carried out a number of activities in order to communicate information disclosure about the Company to the public, which
    included publishing press releases 14 times;
6. Updated the data contained in the website for the investor relations department; and
7. Formulated the Corporate Secretary’s work program for 2024.




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The Internal Audit Unit
The Internal Audit Unit is a Company organ whose duties and responsibilities to supports the implementation of the Board
of Directors’ functions related to monitoring and assessing the internal control system, as well as providing independent and
objective views, assurances, and consultations to improve the value and operational performance of the Company. The Internal
Audit Unit is also responsible for assisting the Company in increasing value and improving the Company’s operations through a
systematic approach by evaluating and improving the effectiveness of risk management, internal control and GCG processes.



The Internal Audit Unit Charter

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



Party Appointing and Dismissing the Internal Audit Unit

In accordance with the Internal Audit Charter, the Internal Audit Unit is led by a Head of Internal Audit Unit appointed and
dismissed by the President Director with the Board of Commissioners’ approval. Each appointment, replacement, or dismissal
of the Head of Internal Audit Unit shall be notified to the Financial Services Authority.



Structure and Position of the Internal Audit Unit


               The Board of Commissioners                                                                President Director



                     The Audit Committee                                                              The Internal Audit Unit



The structure of the Internal Audit Unit is directly under the President Director so that the implementation of its duties is
directly accountable to the President Director. In 2023, the Internal Audit Unit comprised of 3 members, namely:


       Name                  Position                                                  Basis of Appointment

 Bobby Septian          Chairman of the
                                                The Board of Directors Decree No. 004/AA/SK/DIR/IV/2023 dated April 6, 2023.
 Yahya*                 Internal Audit Unit

                        Member of the
 Devyka Oktima S                                The Board of Directors Decree No. 004/AA/SK/DIR/IV/2023 dated April 6, 2023.
                        Internal Audit Unit

                        Member of the
 Sarwono                                        The Board of Directors Decree No. 024/AA/DIR/VI/2021 dated August 16, 2021.
                        Internal Audit Unit

* The term of office as Chairman of the Internal Audit Unit commenced on April 6, 2023, replacing Mr. Devyka Oktima S.




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Profile of the Internal Audit Unit

                                                         BOBBY SEPTIAN YAHYA*
                                                      Chairman of the Internal Audit Unit

          Term of Office and Basis of Appointment
          The Board of Directors Decree No. 004/AA/SK/DIR/IV/2023 dated April 6, 2023.
The full profile of the Chairman of the Internal Audit Unit can be found in the Profile of the Related Party Transaction
Committee section of this Annual Report.
* The term of office as Chairman of the Internal Audit Unit commenced on April 6, 2023, replacing Mr. Devyka Oktima S.




Duties and Responsibilities of the Internal Audit Unit

Information regarding the duties and responsibilities of the Internal Audit Unit under the Internal Audit Charter is described
as follows:
1. Formulating and implementing annual internal audit plan;
2. Testing and evaluating the implementation of internal control and risk management systems in accordance with the
    Company’s policies;
3. Conducting inspections and assessments of the efficiency and effectiveness in finance, accounting, operations, human
    resources, marketing, information technology, and other activities;
4. Providing suggestions on improvements and objective information relating to audited activities to all managerial levels;
5. Compiling reports on audit results and submitting them to the President Director and the Board of Commissioners;
6. Monitoring, analyzing, and reporting the implementation of the suggested follow-up improvements;
7. Cooperating with the Audit Committee;
8. Developing programs to evaluate the quality of the audit activities it performs; and
9. Conducting special inspections, if necessary.



Certificates of Expertise of the Internal Audit Unit

The Internal Audit Unit has the following certificates of expertise:


       Name                  Position                                                        Certifications

                                                • Practical Implementation of Operational Audit from Yayasan Pendidikan Internal
 Bobby Septian          Chairman of the
                                                  Audit; and
 Yahya*                 Internal Audit Unit
                                                • Risk Based Internal Audit from Yayasan Pendidikan Internal Audit.

                                                • ISO 9001:2015 on Quality Management System;
                        Member of the
 Devyka Oktima S                                • ISO 14001:2015 on Environmental Management System; and
                        Internal Audit Unit
                                                • ISO 45001:2018 on Occupational Health and Safety Management System.

                                                • ISO 9001:2015 on Quality Management System;
                        Member of the
 Sarwono                                        • ISO 14001:2015 on Environmental Management System; and
                        Internal Audit Unit
                                                • ISO 45001:2018 on Occupational Health and Safety Management System.

* The term of office as Chairman of the Internal Audit Unit commenced on April 6, 2023, replacing Mr. Devyka Oktima S.




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The Internal Audit Unit Meeting

The Internal Audit Unit may convene regular meetings both internally and with the Board of Commissioners, the Board of
Directors, the Audit Committee, and public accounting firms to conduct discussions related to the findings of General Audit,
Compliance Audit, and Operational Improvement. Throughout 2023, the Internal Audit Unit has convened 11 meetings with
the following attendance levels:

                                                                                   Number of                 Number of               Attendance
            Name                                 Position
                                                                                   Meetings                  Attendance                  (%)
 Bobby Septian Yahya*              Chairman of the Internal Audit Unit                  11                         11                  100.00
 Devyka Oktima S                   Member of the Internal Audit Unit                    11                         11                  100.00
 Sarwono                           Member of the Internal Audit Unit                    11                         11                  100.00

* The term of office as Chairman of the Internal Audit Unit commenced on April 6, 2023, replacing Mr. Devyka Oktima S.




The Internal Audit Unit Competence Development

The Company enrolls the Internal Audit Unit in various competence development activities, both through training and
educational programs, to continuously improve the insight and competence of the Internal Audit Unit. Information related to
competence development programs attended by the Internal Audit Unit in 2023 is described as follows:

                      Date                                           Seminar Title                                       Organizer
                 June 13, 2023                       Effective People Management                                          Tancorp
                 July 12, 2023                       Strategic Intent & Balance Score Card                                Tancorp
                 July 14, 2023                       Awareness ISO 50001                                                  Internal
                August 15, 2023                      Practical Coaching Skill                                             Tancorp



Implementation of Duties of the Internal Audit Unit

Information regarding the implementation of duties and responsibilities of the Internal Audit Unit throughout 2023 is described
as follows:
1. Audit inspections on cash and banks;
2. Audit inspections on receivables and sales made by the Company;
3. Audit inspections on debts and purchases made by the Company;
4. Audit inspections on finished goods inventory;
5. Audit inspections on the Company’s fixed assets;
6. Audit inspections on raw material inventory & work in process;
7. Audit inspections on the production process operations carried out by the Company;
8. Audit inspections on salary payments made by the Company;
9. Audit inspections on the project and maintenance costs;
10. Audit inspections on the customers and suppliers;
11. Audit inspenctions on the purchasing process; and
12. Audit inspections on the Company’s Subsidiaries.

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




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Public Accountant
                                                                           Independent supervision of the Company’s financial
                                                                           aspects is carried out by external audits, conducted by
                                                                           the Public Accounting Firm (Kantor Akuntan Publik or
                                                                           “KAP”). KAP’s external audit activity aims to ensure that
                                                                           the Company can provide accountable, independent,
                                                                           and reasonable information and data to Shareholders,
                                                                           regulators, and other stakeholders.



                                                                           Compliance with Indonesian Financial
                                                                           Accounting Standards

                                                                           The preparation of the Company’s Financial Statements
                                                                           is conducted in accordance with the prevailing
                                                                           regulations in Indonesia is described as follows:
                                                                           1. The Financial Accounting Standards (“FAS”) stipulated
                                                                              by the Indonesian Institute of Accountants (Ikatan
                                                                              Akuntan Indonesia or “IAI”); and
                                                                           2. Decree of the Chairman of the Capital Market
                                                                              and Financial Institutions Supervisory Agency
                                                                              (Badan Pengawas Pasar Modal Lembaga Keuangan
                                                                              or “Bapepam-LK”) No. KEP-347/BL/2012 on the
                                                                              Guidelines for the Presentation and Disclosure of
                                                                              Financial Statements of Issuers or Public Companies.


External Audit Procedures and Auditing Standards

The audit of the Company’s Financial Statements is conducted in accordance with the professional standards of public
accountants, which encompasses all audit procedures deemed appropriate to the conditions of the Company, i.e. testing,
inspection, and evaluation of the Financial Statements, as well as assessment of the conformity of the contents of the Financial
Statements with FAS stipulated by IAI.

As part of the audit process, the KAP will conduct a question and answer session concerning the Company’s Management
statements disclosed in the Financial Statements. In the event of discrepancies in the presentation of the report, the KAP is obliged
to convey the discrepancies to the Company’s Management. In addition, the Company’s Management is also responsible for
approving working papers of the inspector of the KAP on the Company for review by the relevant bodies or authorities.



Appointment Mechanism of Public Accountant

With reference to Financial Services Authority (Otoritas Jasa Keuangan or “OJK”) Regulation No. 9 Year 2023 concerning the
Use of Public Accountants and Public Accounting Firms in Financial Services Activities, the appointment of Public Accountant
and Public Accounting Firm must be decided by the Annual GMS by taking into consideration the recommendations from the
Board of Commissioners and the Audit Committee. The appointment of Public Accountant and Public Accounting Firm is then
reported to the OJK by attaching:
1. The appointment document and the recommendation of the Audit Committee;
2. The self-assessment result received from the Public Accounting Firm; and
3. Employment agreement documents with the Public Accountant and Public Accounting Firm.




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2023 Public Accountant

Based on the Annual GMS convened on April 13, 2023, the GMS has delegated the authority to the Company’s Board of
Commissioners to appoint a Public Accountant and/or a Registered Public Accounting Firm in Indonesia to audit the Company’s
Consolidated Financial Statements for the fiscal year ended December 31, 2023. In this regard, the Board of Commissioners
has appointed the Public Accounting Firm of Tanudiredja, Wibisana, Rintis & Rekan (a member firm of PwC global network).
The Company’s Management ensured that the appointed Public Accounting Firm has no conflict of interest with the Company.



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

The names of the Public Accounting Firms and Public Accountants who conducted audit on the Company’s Consolidated
Financial Statements for the last 5 years are described as follows:

 Financial Year                Public Accounting Firms                      Name of Accountant              Opinion
                  Public Accounting Firm of Tanudiredja, Wibisana, Rintis
      2023                                                                          Ely                   Unmodified
                  & Rekan (a member firm of PwC global network)
                  Public Accounting Firm of Tanudiredja, Wibisana, Rintis
      2022                                                                          Ely                   Unmodified
                  & Rekan (a member firm of PwC global network)
                  Public Accounting Firm of Purwantono, Sungkoro &
      2021                                                                   Benyanto Suherman            Unqualified
                  Surja (a member firm of Ernst & Young Global Limited)
                  Public Accounting Firm of Purwantono, Sungkoro &
      2020                                                                  Muhammad Kurniawan            Unqualified
                  Surja (a member firm of Ernst & Young Global Limited)
                  Public Accounting Firm of Purwantono, Sungkoro &
      2019                                                                  Muhammad Kurniawan            Unqualified
                  Surja (a member firm of Ernst & Young Global Limited)



Other Services Provided

There were no other services provided by Public Accounting Firm of Tanudiredja, Wibisana, Rintis & Rekan (a member firm of
PwC global network) other than audit services on the Company’s Consolidated Financial Statements for the fiscal year ended
December 31, 2023.




Internal Control System
The Internal Control System (“ICS”) is an integrated process of actions and activities continuously performed by the Management
and all employees of the Company in order to provide reasonable assurance of the achievement of the Company’s 3 main
objectives, which include:
1. Operational Objective, i.e. the creation of effective and efficient operational activities, including asset security;
2. Reporting Objectives, i.e. the creation of accurate and reliable Financial Statements, both for internal and external
   purposes of the Company; and
3. Compliance Objective, i.e. the creation of compliance with the legal system and applicable laws and regulations.

ICS also serves to prevent fraud within the Company and to provide assurance to stakeholders that systems, procedures, rules,
and norms are implemented appropriately and correctly.




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Implementation of Internal Control System

The implementation of the internal control system within the Company is described as follows:

 Components of Internal
                                                               Implementation in the Company
    Control System
 Finance                      Reviewing the comparison between budget target and realization through periodic reports.
                              Requiring all employees to comply with Standard Operating Procedures (“SOPs”) which regulate various
 Operation
                              procedures for operational activities to ensure effective and efficient performance.
 Assets                       Insuring all fixed assets of the Company under insurances covering fire and other risks.
                              Through the Corporate Secretary, the Board of Directors, the Audit Committee, the Nomination and
                              Remuneration Committee, the Good Corporate Governance Committee, and the Internal Audit Unit,
 Compliance with Applicable
                              continuously communicating and coordinating to review the Company’s compliance with applicable
 Laws and Regulations
                              laws and regulations. In addition, the Corporate Secretary regularly follows the development of laws and
                              regulations, especially those related to the capital market.



Overview of the Effectiveness of Internal Control

The Internal Audit Unit constantly evaluates the effectiveness of ICS to ensure that the Company’s operations run well, as
well as to identify any deficiencies, weaknesses, or deviations from the implementation of policies and procedures in each
operational function. The evaluation results are then used as inputs for the improvement of the ICS for each sub-optimal
operational function.

In ensuring that the implementation of ICS is working well, the Internal Audit Unit does several things as described as follows:
1. Conducting independent inspections within the Company with the objective of increasing added value of the Company’s
    operations by providing independent and objective assurances and consultations;
2. Supporting the achievement of objectives through the adoption of systematic approach by evaluating and improving the
    effectiveness of risk management, control, and good corporate governance processes;
3. Serving as professional advisor to the Board of Directors as well as catalyst for all work units and the Company as a whole;
4. Ensuring that the internal control risk management and corporate governance process of the Company is sufficient and
    functioning properly;
5. Evaluating compliance with prevailing laws, regulations, as well as policies and procedures of the Company;
6. Evaluating whether or not key financial, managerial, and operational information within the scope of the audit are
    presented accurately, completely, reliably, and in a timely manner;
7. Identifying any potential savings and cost effectiveness, and providing recommendations to improve cost efficiency and
    effectiveness;
8. Performing special assignments from the Board of Directors, the Board of Commissioners, and/or the Audit Committee that
    are relevant to the aforementioned scope of works, for example investigation and disclosure of irregularities, fraud, and
    waste; and
9. Preparing audit reports and recommendations for improvements.



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

As a form of commitment by the Board of Commissioners and the Board of Directors in ensuring that the implementation of
ICS in the Company is adequate, systematic, structured and sustainable, evaluation of the implementation of ICS is always
carried out periodically. Based on the assessment for 2023, the Company’s Board of Commissioners and the Board of Directors
conclude that the current ICS has met the standards to ensure the level of effectiveness, efficiency, reliability, security, and
compliance with laws and regulations. In addition, no material weaknesses were found in the ICS in each business unit as all
findings and irregularities in the Company’s operations have been properly handled and resolved.




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Risk Management System
Risk management system is an integrated, structured, and culturally ingrained process and activity, directed to realize
potential opportunities and at the same time manage adverse impacts on the achievement of the Company’s targets. Optimal
implementation of risk management ensures the Company has the flexibility to respond to any risks in the business processes,
thus enabling it to manage every activity that has the potential to cause risk thoroughly, optimally, and continuously to avoid
disruptions to its business. The Company consistently implements and develops risk management system in all business
processes, as well as serving as an integral part of strategic and operational decision making.



Types and Mitigation of Risks

Based on a study conducted in 2023, the risks faced by the Company and their mitigation efforts are described as follows:

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


                                               Risks related to Business and Industry

                       Indication                                                            Mitigation
                                                           • Increasing investment in product development, being selective in
 The Company faces intense competition, and should it        promotional and advertising activities, as well as product distribution; and
 fail to compete effectively, it may lose market share and • Pricing the Company’s products competitively based on a combination
 its operating results may be negatively affected.           of various factors, including the Company’s ability to differentiate these
                                                             products from other competing products.
                       Indication                                                            Mitigation
                                                        • Developing a complete and modern Research, Development, and Innovation
                                                          (“RDI”) center by recruiting and developing qualified chemist personnel;
 The Company’s efforts to innovate and develop products
                                                        • Preserving good relationships with suppliers of materials to obtain
 may not be successful.
                                                          information on the developments of the latest materials; and
                                                        • Recruiting experts in the global coating sector.
                       Indication                                                            Mitigation
                                                          • Improving the quality of the Company’s human resources;
 In maintaining the success of its business, the Company
                                                          • Paying care and attention to the recruitment, development, and career path
 relies on the availability of certain core personnel and
                                                            processes; and
 its success in recruiting and retaining other qualified
                                                          • Building partnerships with leading universities/academies to secure quality
 personnel.
                                                            talents.
                       Indication                                                            Mitigation
 The Company’s main business activities depend on
 a stable and adequate supply of raw materials, and
                                                              Procuring and maintaining consistent and adequate supply of raw materials at
 operating results of the Company may be materially
                                                              a reasonable price by always seeking or updating new (alternative) suppliers.
 affected as a result of rising raw material costs or lack of
 raw material availability.




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                                                Risks related to Business and Industry

                       Indication                                                               Mitigation
The Company leases important assets, such as warehouses
and distribution centers. The inability to renew these        Maximizing with a longer lease term (3 - 5 years).
leases may affect the Company’s operational capabilities.
                       Indication                                                               Mitigation
The Company is involved in a number of transactions with
related parties (affiliates) and is not able to guarantee
                                                             Ensuring that all transactions with affiliated parties (Related Party Transactions)
that its operational results or financial condition will not
                                                             are carried out on an arm’s length basis to avoid negative effects that may arise
be negatively affected in the future if the provisions of
                                                             due to unhealthy business practices.
these agreements are terminated or amended in a way
that may potentially harm the Company.
                       Indication                                                               Mitigation
                                                          • Ensuring that cooperation agreements with vendors are well maintained;
The Company may not be able to procure adequate and
                                                          • Ensuring the availability of alternative vendors; and
continuous supply of electricity, fuel, water, equipments
                                                          • Looking for alternative energy sources, such as the use of solar panels, so that
and spare parts, or to procure them at a favorable price.
                                                            the electricity supply reserves are maintained.


                                                               General Risks

                       Indication                                                               Mitigation
The Company’s business activities, financial condition,
                                                        Monitoring global and national economic conditions, to ensure that the
results of operations, and business prospects may be
                                                        Company is able to formulate appropriate and flexible strategies to adapt to
negatively affected by global, regional, and national
                                                        existing changes.
economic conditions.
                       Indication                                                               Mitigation
                                                      • Entering into license agreements with third parties;
                                                      • Relying on contractual agreements and legal protections to protect
The Company may not be able to adequately protect its
                                                        intellectual property rights of the Company; and
intellectual property rights.
                                                      • Relying on Indonesian patent, trademark, trade secret, and copyright laws to
                                                        protect intellectual property rights of the Company.
                       Indication                                                               Mitigation
The Company may fail to obtain or experience material
delays in obtaining or renewing the certificates, licenses,
permits, or Government approvals required for the
                                                            Ensuring that all certificates, permits, licenses, and other matters relating to
Company’s operations and relevant leasing activities
                                                            permits for operational activities, including leases, are updated at all times.
for its manufacturing facilities. As a result, business
activities, financial condition, and operational results of
the Company may be materially affected.
                       Indication                                                               Mitigation
                                                   Implementing and improving the Environmental Management System (ISO
                                                   14001) and Energy Management System (ISO 50001), as well as monitoring
                                                   the consistency of implementation in corporate environment, for example
Regulation of greenhouse gas emissions and climate
                                                   the development of environmentally friendly products (green label), the use
change issues may have a negative impact on the
                                                   of renewable energy (solar panels), and the use of electric forklifts to replace
Company’s operations and markets.
                                                   diesel, as well as replacing solar energy for thermo and boilers with gas energy.
                                                   In addition, programs related to environmental concerns are always aligned
                                                   with ISO 26000, which is one of the guiding standards on social responsibility.
                       Indication                                                               Mitigation
Labor activism, riots, and labor laws in Indonesia may The Company’s constant efforts to comply with all regulations related to
have a materially adverse effect on the Company.       employment to minimize related risks.




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



Overview on the Implementation Effectiveness of Risk Management System

The Company conducts periodic reviews to ensure and improve the effectiveness of future implementation of risk management.
This is done by evaluating mechanism of profit/loss relating to previously performed plans and actions. The evaluation steps
are then followed by corrections of the weaknesses in the implementation of the risk management.



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

As a form of commitment of the Board of Commissioners and the Board of Directors to ensure adequacy of implementation
of the Company’s risk management system in a systematic, structured, and sustainable manner, periodic evaluation of risk
management system implementation is consistently conducted. Based on the assessment for 2023, the Board of Commissioners
and the Board of Directors view that the current implementation of the Company’s risk management system is adequate,
allowing effective and timely mitigation of business risks. Nevertheless, there is always room for continuous development and
improvement of the risk management system to optimize risk management and mitigation, in order to significantly contribute
to the sustainability of the Company’s business.




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Legal Disputes with Material Impacts and
the Administrative Sanctions Imposed
Legal Disputes with Material Impacts

Throughout 2023, there were no legal disputes with material impact, either civil or criminal, faced by the Company, the
Subsidiaries, the Board of Commissioners, and the Board of Directors.



Administrative Sanctions

Throughout 2023, there were no administrative sanctions imposed on the Company, the Board of Commissioners, and the
Board of Directors by the Financial Services Authority, the Indonesia Stock Exchange, or other authorities.




Code of Conduct
The Company realizes the importance of quality governance practices as a tool to increase value and sustainable long-
term business growth. Therefore, the Company has compiled and implemented Business Ethics and Code of Conduct of the
Company which are standards of behavior that must be heeded by all employees including the Board of Directors, the Board
of Commissioners, and the Company’s supporting organs, in executing their roles, authorities and responsibilities, as well as
in interacting in the work environment. In addition to conducting business activities in accordance with the highest ethical
standards in terms of honesty, integrity, and professionalism in business, the Company’s Business Ethics and Code of Conduct
are also expected to build harmonious relationships between the interests of the operations and business carried out by the
Company and the interests of each stakeholder within the Company’s operations and business environment, as well as those
affected by operations and business activities of the Company.



Principles of Business Ethics and Code of Conduct

The principles of the Company’s Business Ethics comprise the following:


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




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




 3    Company Ethics for Consumers                               8     Responsibilities to the Government




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




 5    Company Ethics for Competitors                             10    Responsibilities in Innovation




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The principles of the Company’s Code of Conduct comprise the following:


 1     Individual Commitment                                         7    Compliance with prevailing Laws and Regulations




 2     Communication and Information Delivery                        8    Giving and Receiving of Gratuities



       Maintainance of the Confidentiality of Data,
 3     Confidential Information, and Material                        9    Integrity of Financial Reporting
       Information of the Company



 4     Use of Company Technology                                     10   Protection of Company Assets




 5     Cooperation between Company Personnel                         11   Budget Planning and Use



                                                                          Occupational Health and Safety and Environment
 6     Equality in Treatment and Provision of Opportunities          12   (“OHSE”)



                                      13     Conflict of Interests




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

As a manifestation of the Company’s commitment to upholding GCG principles, the Company continues to disseminate
Business Ethics and Code of Conduct, considering that socialization is an important stage in creating Company personnel
who behave in accordance with the Company’s culture. The Business Ethics and Code of Conduct are intensively socialized by
the Company through the Good Corporate Governance Committee in order to create awareness across all employees of the
Company to implement the Business Ethics and Code of Conduct. Socialization is conducted from the start of employment
and repeated periodically thereafter. One of the Company’s efforts in disseminating the Business Ethics and Code of Conduct is
the signing of the Integrity Pact as regulated in Form No. AA-HRD-FRM-01-010. To facilitate access for employees, the Business
Ethics and Code of Conduct are also posted on the Company’s website.



Efforts in Enforcing Business Ethics and Code of Conduct

The Business Ethics and Code of Conduct are applicable to all of personnel of the Company, from employees, management,
the Board of Directors, to the Board of Commissioners. This is to ensure that all business activities are always in accordance with
applicable ethics and rules. The Company has also established the Good Corporate Governance Committee as the responsible
party in enforcing Business Ethics and Code of Conduct throughout the Company.



Sanctions of Violation of Business Ethics and Code of Conduct

Any employee of the Company who has been proven to have violated the Business Ethics and Code of Conduct may be
subject to disciplinary action in the form of verbal and written warnings, stern warnings with suspensions, financial fines, and
termination of employment (pemutusan hubungan kerja or “PHK”).




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Employee Stock Allocation Program
The Company implements a policy to provide share ownership facilities to its employees through the Employee Stock Allocation
(“ESA”) program. The description concerning the implementation of the ESA program is as follows:


            Number of Shares                                Execution Period                                 Execution Price
 3,099,300 shares or 0.05% of new shares
                                                            December 2 – 6, 2021                                  IDR930.-
 in the Initial Public Offering.
                                      Requirements on Employee Eligibility for ESA Program
 1. Permanent employees who have been registered as employees on the date determined by the Company (“ESA Date”);
 2. Employees participating in the ESA program and the number of shares to be allocated to participants in the ESA program take into
    account their tenure, position, and other considerations;
 3. So long as there remain shares allocated in the ESA program, the Board of Directors of the Company may allocate the remaining shares
    in the ESA program to employees who start their employment after the ESA Date;
 4. Shares originating from the ESA program are subject to a lock-up period, and therefore may not be transferred in any way for 24 months
    from the date of listing of the Company’s shares on the Indonesia Stock Exchange;
 5. In the event that an employee resigns when the lock-up period has not ended, the shares will be transferred to another employee, free
    of charge, in accordance with the policy of the Board of Directors; and
 6. In the event that an employee dies when the lock-up period has not ended, the shares will be transferred, free of charge, to their legal,
    and provable to the Board of Directors of the Company, heirs in accordance with the policy of the Board of Directors.
                                                           Responsible Parties
 1. Department of HR Development;
 2. Department of Business Development; and
 3. Department of Finance.




Information Disclosure Policy
The policy concerning the ownership, either directly or indirectly, of the Company’s shares by the Board of Commissioners
and the Board of Directors as well as changes in each ownership has been regulated in the Policy on Reports of Share
Ownership or Every Change to the Share Ownership of the Board of Commissioners and the Board of Directors stipulated on
December 27, 2021.

The reporting mechanism and reporting period by every member of the Board of Commissioners and Board of Directors
regarding ownership of the Company’s shares and changes thereto are as follows:

                          Self-Reporting                                               Reporting through Authorization
 Members of the Board of Commissioners or members of the Board            Members of the Board of Commissioners or members of the Board
 of Directors directly submit a report to Financial Services Authority    of Directors submit a report through the Corporate Secretary by
 (Otoritas Jasa Keuangan or “OJK”) and deliver a copy of the report       attaching a Special Power of Attorney no later than 2 calendar days
 to the Corporate Secretary. The reporting period is no later than 3      from the effective date of the ownership or every change in share
 working days to the Company and no later than 10 working days            ownership in the Company. The reporting period is no later than
 to OJK from the effective date of the ownership or every change in       5 working days to OJK from the effective date of the ownership or
 share ownership in the Company.                                          every change in share ownership in the Company.


The Company also submits a report of the transaction to the OJK no later than 10 days from the date of the transaction. In this
regard, the Company has submitted reports on the share ownership of members of the Board of Commissioners and/or Board
of Directors throughout 2023 via e-reporting to the Financial Services Authority and the Indonesia Stock Exchange.




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Share Ownership Disclosure

Disclosure of ownership, either directly or indirectly, of the Company‘s share can be found in the Composition of Share Ownership
by Members of the Board of Commissioners and the Board of Directors in the Company Profile chapter of this Annual Report.




Whistleblowing System
To realize the Company’s commitment to the implementation of GCG principles, the Company has in place a Whistleblowing
System (“WBS”) which was stipulated on June 25, 2021 and last amended on December 27, 2021. The Company has implemented
WBS as part of its efforts to prevent fraud and abuse. Through the WBS, all stakeholders may submit reports concerning alleged
irregularities or violations of existing regulatory provisions, based on reliable evidence and in good faith for the interest of the
Company. The implementation of a well-managed WBS can serve as foundation for the Company to arrange for necessary
evaluations and follow-ups.



Method of Submission and Parties Managing Reports of Violations

Any employee of the Company who discovers a violation or fraud is encouraged to submit a complaint. In submitting a violation
report, the reporter/whistleblower must include complete information regarding:




  Types of Actions Suspected
                                    Parties Involved in Violation.       Location of Violation.              Time of Violation.
         as Violation.




                                      If the Violation Has Been       If the Violation Has Occurred
                                                                                                           Other Important and
  How the Violation Occurred.             Reported to Other              Before and is a Repeated
                                                                                                           Relevant Information.
                                                Parties.                          Action.




The violation reports may be submitted via:



                                         The Good Corporate Governance Committee
                                         Avian Brands Building
                                         Jl. Ahmad Yani No. 317                          (62) 81138505000
                                         Surabaya, 60234                                 www.avianbrands.com
                                         Jawa Timur, Indonesia                           pengaduan@avianbrands.com




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The parties authorized to follow up on reporting in the Company are:




         The Good
                                             The Board of                                                        The Board of
  Corporate Governance                                                         The Board of
                                               Directors,                                                    Commissioners and
     Committee and                                                           Commissioners,
                                            if the reported                                                the Board of Directors,
        its officers,                                                         if the reported
                                       party is a member of the                                                 if the reported
      if the reported                                                    party is a member of the
                                       Whistleblowing System                                               party is a member of the
   party is an employee                                                     Board of Directors.
                                            Management.                                                    Board of Commissioners.
     of the Company.




Protection for Whistleblowers

To minimize certain risks that may harm the whistleblower in the future, the Company assures the confidentiality and security
of the whistleblower’s identity and the reported information, as well as the protection from all forms of threats, intimidation,
or unpleasant actions from any party caused by the reporting, as long as the whistleblower maintains confidentiality from any
other parties. The protections provided to the whistleblower also applies to the parties carrying out the investigation as well as
the parties providing information related to the report.



Procedures in Handling Violation Reports

Any report of violations received will be followed up by collection of preliminary evidence. If the initial documents and evidences
in the report submitted by the whistleblower are declared to be sufficient, the Good Corporate Governance Committee will
sort the data and decide whether the violation report may be advanced to the investigation stage. If the violation report is
upgraded to the investigation stage, it will be reported to the Board of Directors. If the violation report is not upgraded to the
investigation stage, notice will be given to the whistleblower. Reports relating to employees are to be submitted in the form
of letters and addressed to the President Director, while reports relating to the Board of Directors should be addressed to the
Board of Commissioners.



Complaints Disclosure through Whistleblowing System in 2023

Number of Complaints through Whistleblowing System
As of December 31, 2023, the Company has received 5 complaint reports submitted to the whistleblowing system with the
following description:

                                            Report Category                                                    Total Report
 Fraud
                                                                                                                     1
 Reporting of a case that results in the Company’s financial loss.
 Major Violations
                                                                                                                     2
 Reporting of a case that constitutes a violation of the SOP or Company Regulation.
 Minor Violations
                                                                                                                     1
 Reporting of a case that constitutes a violation of the employee and workplace discipline/organization.
 No Issue
                                                                                                                     1
 Reporting of a case that does not indicate a violation.




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There were 5 incoming complaint reports, namely 1 fraud report, 2 major reports, 1 minor report, and 1 no issue report. All
of these reports have been followed up by the relevant teams and resolved in accordance with the degree of error and the
applicable regulations in the Company.

Sanctions and Follow-ups of Complaints through Whistleblowing System
If, based on the results of the investigation, it is proven that the reported party committed fraud or violation, the deciding
official will impose sanctions in accordance with applicable regulations.




Anti-Corruption Policy
The Company is committed to supporting and encouraging business and operational management to ensure its execution in
an accountable and transparent manner, in accordance with the provisions of the prevailing laws and regulations. To that end,
the Company strictly prohibits all of its employees from being involved in acts of bribery, corruption, and money laundering.

The anti-corruption policy is contained in the Business Ethics and Code of Conduct of the Company. The anti-corruption policy
has been socialized across all employees, in which all of employees of the Company are required to sign the Integrity Pact
document. As for new employees, the socialization will be carried out through an induction program.




Policy to Prevent Insider Trading
The Company has Policy to Prevent Insider Trading which was stipulated on December 27, 2021. This policy aims to avoid
conflicts of interest between the Company and certain parties, to ensure fair trading of the Company’s securities, to protect
the Company in the execution of corporate actions, and to regulate the use of material information that is not or has not
become public information by any party with access to material information or confidential information.




Policy on Fulfillment of Creditors’ Rights
The Company has Policy on the Fulfillment of Creditors’ Rights which was stipulated on December 27, 2021. This policy is
utilized as a guideline in securing loans from creditors. The Company will ensure the fulfillment of creditors’ rights to maintain
their trust in the Company. The selected creditors can be creditors domiciled in the territory of the Republic of Indonesia
(onshore creditors) and/or creditors domiciled outside the territory of the Republic of Indonesia (offshore creditors).




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Conflict of Interest Guidelines
The Company understands the importance of a firm attitude in managing conflicts of interest that occur within the Company,
to ensure good corporate management as well as amiable and harmonious relationships with all Stakeholders and to increase
company value in a sustainable manner. With these considerations, the Company has compiled a Conflict of Interest Guidelines
that are based on the prevailing laws and regulations, GCG Guidelines, Business Ethics and Code of Conduct, as well as Corporate
Culture that are applicable and implemented in the Company. The Conflict of Interest Guidelines were stipulated on June 25,
2021 and updated on December 27, 2021.




Communication Policy Guidelines
The Company stipulated the Communication Policy Guidelines as a guide in communicating with its Shareholders, the Capital
Market Authority, and the capital market community. The stipulation of the Communication Policy Guidelines aims to enable
the Company to provide complete, accurate, actual, non-misleading, and easily accessible information in accordance with the
provisions of the legislation, as well as to conduct itself fairly in the treatment of shareholders in relation to the exercise of their
rights as Shareholders of the Company. The Communication Policy Guidelines were stipulated on December 27, 2021.




Policy Guideline in Resignation Procedure of
the Board of Commissioners and the Board
of Directors in the Event of Involvement in
Financial Crime

The Company has established a Policy Guideline on the Resignation Procedure of the Board of Commissioners and the
Board of Directors in the Event of Involvement in Financial Crimes as part of its commitment to optimal and comprehensive
implementation and enforcement of GCG principles in all business activities. Each member of the Board of Commissioners
and/or the Board of Directors is required to submit his/her resignation from his/her position to the Company if he/she is found
to have been involved in a financial crime. This Policy Guideline was established on December 27, 2021




Affiliated Transaction Guidelines
The Company stipulated the Affiliated Transaction Guidelines as a guide for the Company’s employees in conducting
transactions with affiliated parties, so that such transactions may be carried out in accordance with the generally accepted
business practices, applicable laws and regulations, and fulfill the arms-length principle. In addition, the Affiliated Transaction
Guidelines aim to assist and enhance the independence of the Company’s management in managing transactions with
affiliated parties, so that such transactions do not violate authorities that may harm the interests of the Company and the
Shareholders. The Affiliated Transaction Guidelines were stipulated by the Company on November 16, 2022.




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Implementation of Corporate Governance
Guidelines for Public Companies
As a public company, the Company is guided by the Circular Letter of the Financial Services Authority (Otoritas Jasa Keuangan
or “OJK”) No. 32/SEOJK.04/2015 concerning Corporate Governance Guidelines for Public Companies, the implementation of
which is described as follows:


 No.        Aspects/Principles/Recommendations                   Fulfillment                        Description
  I.    Relationships of Public Company with the Shareholders in Assuring the Rights of the Shareholders
  1.    Increasing the Value of the General Meeting of Shareholders (GMS).
  a.    Public companies have technical voting methods or         Fulfilled    The voting procedure in the GMS has been regulated in
        procedures, both publicly and privately, that promote                  the Articles of Association related to the meeting rules
        independence and the interests of shareholders.                        and informed to the Shareholders in the invitation to the
                                                                               GMS and at the beginning of the GMS.
  b.    All members of the Board of Commissioners and the        Explanation   Mr. Wijono Tanoko as the President Director of the
        Board of Directors of a public company attend the                      Company was unable to attend the 2023 Annual GMS
        Annual GMS.                                                            convened on April 13, 2023.
  c.    Summary of the GMS minutes is available on the            Fulfilled    The summary of the minutes of the 2022 GMS has
        website of the public company for at least 1 year.                     been posted on the Company’s website in the Investor
                                                                               Information Center section.
 2.     Improving the Quality of Public Company’s Communication with Shareholders or Investors.
  a.    Public companies have a communication policy with         Fulfilled    The communication policy with Shareholders or Investors
        shareholders or investors.                                             is regulated in the Communication Policy Guidelines
                                                                               stipulated on December 27, 2021.
  b.    Public companies disclose their communication policy      Fulfilled    The Company’s communication policy has been disclosed
        with the Shareholders or Investors on the website.                     on its website.
  II.   Functions and Roles of the Board of Commissioners
  3.    Strengthening the Membership and Composition of the Board of Commissioners.
  a.    The determination of number of members of the             Fulfilled    The number of members of the Board of Commissioners
        Board of Commissioners takes into consideration the                    is in accordance with the provisions of the Company’s
        conditions of the public company.                                      Articles of Association and has been adjusted to the
                                                                               complexity of the business of the Company.
  b.    The determination of the composition of members of        Fulfilled    The nomination and appointment of the Board of
        the Board of Commissioners takes into consideration                    Commissioners has taken into account the diversity of
        the diversity of expertise, knowledge, and required                    expertise, knowledge, and experience relevant to the
        experience.                                                            responsibilities carried out in the Company.
  4.    Improving the Quality of the Implementation of the Duties and Responsibilities of the Board of Commissioners.
  a.    The Board of Commissioners has a self-assessment          Fulfilled    The performance assessment policy for the Board
        policy to assess the performance of the Board of                       of Commissioners is regulated in the Performance
        Commissioners.                                                         Assessment Policy of the Board of Directors and the
                                                                               Board of Commissioners which was stipulated on
                                                                               December 27, 2021.
  b.    The self-assessment policy to assess the performance      Fulfilled    The performance assessment policy for the Board of
        of the Board of Commissioners is disclosed in the                      Commissioners is conducted through self-assessment
        Annual Report of the public company.                                   which has been disclosed in this Annual Report in the
                                                                               description of the Performance Assessment of the Board
                                                                               of Commissioners.
  c.    The Board of Commissioners has in place a policy          Fulfilled    The policy concerning the resignation of the Board of
        related to the resignation of members of the Board of                  Commissioners is regulated in the Policy in Resignation
        Commissioners in the event of involvement in financial                 Procedure of the Board of Commissioners and the Board
        crimes.                                                                of Directors in the Event of Involvement in Financial
                                                                               Crime which was stipulated on December 27, 2021.
  d.    The Board of Commissioners or the Committee               Fulfilled    The succession policy for members of the Board of
        performing the nomination and remuneration functions                   Directors is contained in the Succession Policy in the
        formulates a succession policy in the nomination                       Nomination Process for Members of the Board of
        process of members of the Board of Directors.                          Commissioners and the Board of Directors which was
                                                                               stipulated on December 27, 2021.




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No.        Aspects/Principles/Recommendations                     Fulfillment                          Description
III.   Functions and Roles of the Board of Directors
5.     Strengthening the Membership and Composition of the Board of Directors.
a.     The determination of the number of members of               Fulfilled    The number of members of the Board of Directors is in
       the Board of Directors takes into consideration the                      accordance with the provisions of the Company’s Articles
       condition of the public company, as well as the                          of Association and has been adjusted to the complexity
       effectiveness in decision making.                                        of the business of the Company.
b.     The determination of the composition of members             Fulfilled    The nomination and appointment of the Board of
       of the Board of Directors considers the diversity of                     Directors has taken into account the diversity of
       expertise, knowledge, and required experience.                           expertise, knowledge, and experience relevant to the
                                                                                responsibilities carried out in the Company.
c.     Members of the Board of Directors in charge of              Fulfilled    The Director in charge of accounting or finance has
       accounting or finance have the expertise and/or                          experiences in accounting and finance.
       knowledge in accounting.
6.     Improving the Quality of the Implementation of the Duties and Responsibilities of the Board of Directors.
a.     The Board of Directors has in place a self-assessment       Fulfilled    The performance assessment policy for the Board of
       policy to assess the performance of the Board of                         Directors is regulated in the Performance Assessment Policy
       Directors.                                                               for the Board of Directors and the Board of Commissioners
                                                                                which was stipulated on December 27, 2021.
b.     The self-assessment policy to assess the performance        Fulfilled    The performance assessment policy for the Board of
       of the Board of Directors is disclosed through the                       Directors is conducted through self-assessment which has
       Annual Report of the public company.                                     been disclosed in this Annual Report in the description of
                                                                                the Performance Assessment of Board of Directors.
c.     The Board of Directors has in place a policy related to     Fulfilled    The policy concerning the resignation of the Board
       the resignation of members of the Board of Directors in                  of Directors is regulated in the Policy in Resignation
       the event of involvement in financial crimes.                            Procedure of the Board of Commissioners and the Board
                                                                                of Directors in the Event of Involvement in Financial
                                                                                Crime which was stipulated on December 27, 2021.
IV.    Stakeholders Participation
7.     Improving Corporate Governance Aspects through Stakeholders Participation.
a.     Public companies have in place a policy to prevent          Fulfilled    The policy to prevent insider trading is set out in the
       insider trading.                                                         Policy to Prevent Insider Trading, which was stipulated on
                                                                                December 27, 2021.
b.     Public companies have in place a policy on anti             Fulfilled    The Company has in place an anti corruption and anti
       corruption and anti fraud.                                               fraud policy which is contained in the Business Ethics and
                                                                                Code of Conduct of the Company.
c.     Public companies have in place a policy on selection        Fulfilled    The Company has in place a policy on the selection and
       and improvement of capabilities of suppliers or vendors.                 improvement of capabilities of suppliers which serves as a
                                                                                guide for related units in selecting working partners as stated
                                                                                in the Business Ethics and Code of Conduct of the Company.
d.     Public companies have in place a policy on the              Fulfilled    The policy on the fulfillment of creditors’ rights is
       fulfillment of creditors’ rights.                                        regulated in the Policy on the Fulfillment of Creditors’
                                                                                Rights which was stipulated on December 27, 2021.
e.     Public companies have in place a policy on                  Fulfilled    The Company has in place a Whistleblowing System
       whistleblowing system.                                                   Policy which is contained in the Whistleblowing System.
 f.    Public companies have in place a policy on provisions       Fulfilled    The Company has in place a policy concerning the
       of long-term incentives for the Board of Directors and                   provision of long-term incentives to employees as stated
       employees.                                                               in the Employee Stock Allocation (“ESA”) Program.
V.     Information Disclosure
8.     Improving the Implementation of Information Disclosure.
a.     Public companies utilize the use of information             Fulfilled    The Company utilizes information technology, in addition
       technology more broadly, in addition to website, as                      to the website, in increasing the dissemination of
       media for information disclosure.                                        information, including through the Company’s Youtube,
                                                                                Instagram, LinkedIn, and Facebook pages/profiles, as well
                                                                                as through platforms provided by regulators, including
                                                                                SPE OJK and IDXnet.
b.     The Annual Report of a public company discloses the         Fulfilled    The Annual Report contains the ultimate beneficial
       ultimate beneficial owner in the public company’s                        owners in the Company’s share ownership.
       share ownership of at least 5% of shares, in addition to
       the disclosure of ultimate beneficial owner in the share
       ownership of the public company through the Main
       and Controlling Shareholders.




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Social and
Environmental
Responsibility




“The Company remains focused on
prioritizing business activities that protect
environmental preservation and promote
sustainable social responsibility in order
to build a better life for the future.”




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Page 162
In line with the Company’s Vision and Mission, and in order to maintain sustainability of the Company’s business and create
long-term value for all stakeholders, the Company is firmly committed to promoting sustainability practices in all lines of business
through Environmental, Social, and Governance (“ESG”) management in all business decisions. Tangible implementation of this
commitment is achieved through the development of products with Product Stewardship principles and meeting Singapore
Green Label standards. The Company also continues to develop production activities focused on environmental sustainability,
such as using environmentally friendly energy, reusing production materials, managing emissions, and conducting product life
cycle analysis through cradle to grave Life Cycle Assessment (“LCA”).

In addition, we implement a Social and Environmental Responsibility (“SER”) program that is packaged under the name of
Avian Brands Peduli. The program reflects the Company’s continuous support to increase real contributions to stakeholders,
especially in terms of community welfare and development in our operational areas. In general, Avian Brands Peduli targets
3 main programs, i.e. education, environment, and disaster response. Fulfillment of responsibilities towards employees has also
been realized on an ongoing basis together with our Subsidiaries, i.e. PT Tirtakencana Tatawarna (“TKTW”) and PT Tirtakencana
Batamindo (“TKBI”).

All of our SER activities are guided by the prevailing and relevant laws and regulations, among others:
1. Law No. 40 of 2007 on Limited Liability Companies;
2. Law No. 11 of 2000 on Job Creation;
3. Government Regulation in Lieu of Law (Peraturan Pemerintah Pengganti Undang-Undang or “Perpu”) No. 2 of 2022 on Job
     Creation;
4. Law No. 8 of 1999 on Consumer Protection; and
5. Government Regulation No. 47 of 2012 on Social and Environmental Responsibility of Limited Liability Companies.




Sustainability Performance Overview

SUSTAINABILITY OF ECONOMIC ASPECT
                                                                                               (in millions Rupiah, unless otherwise stated)

                            Description                                    2023                 2022                       2021
 Direct Economic Value Generated
 Cash Received from Customers                                            6,850,984             6,781,888                  6,617,183
 Other Receipts                                                             12,664                11,601                     16,620
 Receipts of Finance Income                                                308,589              302,422                      26,728
 Proceeds from Disposal of Fixed Assets                                     14,094                16,398                     11,649
 Total Direct Economic Value Generated                                   7,186,331            7,112,309                  6,672,180
 Distributed Economic Value
 Payments to Suppliers                                                   4,397,297             4,598,330                  4,371,356
 Payments to Employees                                                     707,405              659,079                     590,549
 Payment for Corporate Income Tax                                          482,000              377,003                     426,627
 Dividend Payment to Shareholders                                        1,362,978             1,115,164                  2,350,001
 Acquisition of Right-of-Use Assets                                         14,289                66,285                     42,335
 Payment of Lease Liabilities                                               58,836                25,374                     35,575
 Payment of Interest Expense                                                 4,077                 6,463                     37,102
 Expenses for the Community                                                  2,881                 1,978                       1,923
 Environmental Expenses                                                      1,059                 1,524                       1,257
 OHS Investment Cost                                                           886                   841                       4,399
 Total Distributed Economic Value                                        7,031,708            6,852,041                  7,861,124
 Retained Economic Value                                                   154,623              260,268                (1,188,944)




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SUSTAINABILITY OF SOCIAL ASPECT
                         Description                                    Unit               2023**      2022**          2021*
 Manpower Management
 Total Employees (Including Outsourcing)                               Persons               8,477       8,076          7,689
 Total Female Employees (Including Outsourcing)                        Persons               1,723       1,625          1,409
 Number of Participants in the Competence Development                  Persons               6,173       3,096          3,420
 Total Recordable Injury Rate                                           Rate                  2.16        2.01           2.40
 Total Recordable Injury Frequency Rate                                 Rate                  2.69     1.74****          2.30
 Community Development and Empowerment (PPM)***
 Number of PPM Program                                                Program                   98          27               13
 Cost of PPM Program                                                Million Rupiah           2,881       1,978          1,923
 Local Supplier Engagement***
 Local Supplier                                                 Number of Company             219          209              231
 Total Use of Local Employees                                          Persons             7,577**     7,231**         6,739*

Note:
*    The Company and TKTW;
** The Company, TKTW, and TKBI;
*** The Company; and
**** Data restated.




SUSTAINABILITY OF ENVIRONMENTAL ASPECT
                         Description                                    Unit                2023        2022           2021
 Energy Usage
 Energy Usage                                                            GJ               213,912.86   211,334.51     224,403.18
 Renewable Energy Usage                                                  GJ                 1,814.71      906.82         674.91
                                                                  GJ/Ton of Product             0.17         0.19            0.19
 Energy Intensity
                                                                 kWh/Ton of Product            47.40        52.14           52.64
                                                                  GJ/Ton of Product             0.02              0          0.01
 Energy Efficiency
                                                                 kWh/Ton of Product             4.74         0.50            0.63
 Water Usage
 Total Water Usage                                                    Megaliter              141.68       113.98         130.26
 Water Intensity                                               Megaliter/Ton of Product      0.0009       0.0008         0.0008
 Emissions Generated
 Total Scope 1 and 2 Emissions                                        TonCO2e              11,317.42    11,408.00      13,385.60
 Scope 1 and 2 Emission Intensity                              KgCO2e/Ton of Product           23.27        25.15           24.83
 Reduction of Hazardous and Toxic Waste Generation
 Reuse of Industrial Waste                                               Ton                1,820.24     2,482.98       1,263.45
 Reuse of Washing Solvent                                                Ton                 166.27      180.87*         230.05
 Hazardous Waste (liquid and solid managed by third parties)             Ton                 886.77       946.96         574.22
 Non-Hazardous Waste                                                     Ton                 185.07       157.68            98.14
 Discharge Water                                                      Megaliter                 3.83         4.14            4.54
 Material Used in Paint Production
 Non-Renewable Materials                                                 Ton               70,887.41    74,937.20      94,294.00
 Renewable Materials                                                     Ton               72,903.20    61,888.17      80,411.00
 Total Production                                                        Ton              180,540.00   170,986.00     205,382.00

Note:
* Data restated.


A complete description on SER policies and programs is discussed more comprehensively in our Sustainability Report that is
presented separately from this Annual Report.




                                                                2023 Annual Report - PT Avia Avian Tbk                161
Page 164
162   PT Avia Avian Tbk - 2023 Annual Report
Page 165
                                                                        Painting a Beautiful Picture of Indonesia




Annual Report Responsibility


 Statement of Members of the Board of Commissioners and the Board of Directors
               on the Responsibility for the 2023 Annual Report of
                               PT Avia Avian Tbk


       We, the undersigned, hereby declare that all information in the 2023 Annual Report of PT Avia Avian Tbk
  (the “Company”) has been completely presented and we shall be fully responsible for the correctness of contents
                                         in the Company’s Annual Report.

                                 This statement is hereby made in all truthfulness.

                                            Surabaya, March 12, 2024



                                      THE BOARD OF COMMISSIONERS,




                Hermanto Tanoko                                     Mohammad Noor Rachman Soejoeti
              President Commissioner                                       Independent Commissioner




                                        THE BOARD OF DIRECTORS,




                 Wijono Tanoko                                                   Ruslan Tanoko
                 President Director                                           Vice President Director




  Robert Christian Tanoko                    Kurnia Hadi Sinanto                      Angelica Tanisia Jozar
            Director                                 Director                                  Director




                                                        2023 Annual Report - PT Avia Avian Tbk            163
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Page 167
PT AVIA AVIAN Tbk
DAN ENTITAS ANAK/AND SUBSIDIARIES
LAPORAN KEUANGAN KONSOLIDASIAN/
CONSOLIDATED FINANCIAL STATEMENTS

31 DESEMBER 2023 DAN 2022/
31 DECEMBER 2023 AND 2022
Page 168

          
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Page 177
                                                  PT AVIA AVIAN Tbk
                                         DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                     Lampiran 1/1 Schedule

LAPORAN POSISI KEUANGAN                                                                      CONSOLIDATED STATEMENTS
KONSOLIDASIAN                                                                                      OF FINANCIAL POSITION
31 DESEMBER 2023 DAN 2022                                                               AS AT 31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                              (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                              unless otherwise stated)


                                                          31 Desember/        31 Desember/
                                            Catatan/      31 December         31 December
                                             Notes            2023                2022

ASET                                                                                                                           ASSETS

ASET LANCAR                                                                                                   CURRENT ASSETS
Kas dan setara kas                              4               1,230,544           2,170,720           Cash and cash equivalents
Kas di bank dan deposito                                                                                   Restricted cash in bank
  yang dibatasi penggunaannya                                       2,100                 3,100                and time deposits
Investasi jangka pendek                         9a              1,740,000                     -            Short-term investments
Investasi pada surat                                                                                                  Investment in
  utang negara                                  9b              2,993,887           3,875,023                 government bonds
Investasi reksa dana                            9                  20,200                   -           Investment in mutual funds
Piutang usaha                                   5                                                               Trade receivables
- Pihak berelasi                                6                  14,018              11,192                     Related parties -
- Pihak ketiga                                                  1,229,025           1,062,461                        Third parties -
Piutang lain-lain                               7                                                                Other receivables
- Pihak berelasi                                6                  56,538              35,960                     Related parties -
- Pihak ketiga                                                     49,331              67,602                        Third parties -
Persediaan                                      8               1,519,549           1,447,229                            Inventories
Hak retur aset                                                     16,426              12,657                Right of return assets
                                                                                                            Advance to suppliers -
Uang muka pemasok - pihak ketiga                                     7,734               7,822                        third parties
Beban dibayar dimuka                                                58,004              21,416                  Prepaid expenses
Pajak dibayar dimuka -                                                                                              Prepaid taxes -
  bagian lancar                                18a                  20,069                1,533                   current portion

TOTAL ASET LANCAR                                               8,957,425           8,716,715         TOTAL CURRENT ASSETS

ASET TIDAK LANCAR                                                                                        NON-CURRENT ASSETS
Pajak dibayar dimuka -                                                                                              Prepaid taxes -
  bagian tidak lancar                          18a                 29,432                   -                  non-current portion
Properti investasi                              10                290,113             285,986                 Investment properties
Aset tetap, neto                                11              1,659,163           1,588,086                     Fixed assets, net
Aset hak-guna                                   15                 95,252             132,190                    Rigt-of-use assets
Aset takberwujud                                                   25,808              23,369                     Intangible assets
Investasi pada ventura bersama                  12                 17,298              16,400            Investment in joint venture
Aset pajak tangguhan                           18d                 43,878               5,547                   Deferred tax assets
Aset tidak lancar lainnya                                          48,618              23,829              Other non-current assets

                                                                                                           TOTAL NON-CURRENT
TOTAL ASET TIDAK LANCAR                                         2,209,562           2,075,407                        ASSETS

TOTAL ASET                                                    11,166,987           10,792,122                        TOTAL ASSETS




Catatan atas laporan keuangan konsolidasian merupakan bagian yang    The accompanying notes to the consolidated financial statements form
    tidak terpisahkan dari laporan keuangan konsolidasian secara          an integral part of these consolidated financial statements.
                              keseluruhan.
Page 178
                                                   PT AVIA AVIAN Tbk
                                          DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                      Lampiran 1/2 Schedule

LAPORAN POSISI KEUANGAN                                                                         CONSOLIDATED STATEMENTS
KONSOLIDASIAN                                                                                         OF FINANCIAL POSITION
31 DESEMBER 2023 DAN 2022                                                                  AS AT 31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                                 (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                                 unless otherwise stated)


                                                           31 Desember/          31 Desember/
                                             Catatan/      31 December           31 December
                                              Notes            2023                  2022

LIABILITAS DAN EKUITAS                                                                                     LIABILITIES AND EQUITY

LIABILITAS                                                                                                                   LIABILITIES

LIABILITAS JANGKA PENDEK                                                                                    CURRENT LIABILITIES
Pinjaman bank                                    16                    5,222                 7,229                         Bank loans
Utang usaha                                      13                                                                   Trade payables
- Pihak berelasi                                 6                   279,321              243,304                   Related parties -
- Pihak ketiga                                                       371,337              330,613                      Third parties -
Utang lain-lain                                                                                                       Other payables
- Pihak berelasi                                 6                       121                   75                   Related parties -
- Pihak ketiga                                                        30,450               12,824                      Third parties -
Pendapatan diterima dimuka                                                                                        Unearned revenue
- Pihak berelasi                                 6                     1,802                1,840                   Related parties -
- Pihak ketiga                                                           362                  185                      Third parties -
Beban akrual                                     14                  301,835              257,448                  Accrued expenses
Imbalan kerja jangka pendek                     17a                   97,052               72,255       Short-term employee benefits
Utang pajak                                     18b                   52,584              112,399                      Taxes payable
Uang jaminan pelanggan                                                 2,100                3,100                Customer guarantee
Provisi retur penjualan                                               21,979               16,494           Provision for sales return
Liabilitas sewa - bagian jangka                                                                                     Lease liabilities -
  pendek                                         15                   10,965               50,397                    current portion

TOTAL LIABILITAS                                                                                                     TOTAL CURRENT
  JANGKA PENDEK                                                  1,175,130             1,108,163                        LIABILITIES

LIABILITAS JANGKA PANJANG                                                                              NON-CURRENT LIABILITIES
                                                                                                                    Post-employment
Liabilitas imbalan pascakerja                   17b                   54,643               47,588                    benefits liability
Liabilitas pajak tangguhan                      18d                        -               38,350              Deferred tax liabilities
Liabilitas sewa - bagian jangka                                                                         Lease liabilities - non-current
  panjang                                        15                   15,725               23,136                             portion

TOTAL LIABILITAS                                                                                              TOTAL NON-CURRENT
  JANGKA PANJANG                                                      70,368              109,074                    LIABILITIES

TOTAL LIABILITAS                                                 1,245,498             1,217,237                   TOTAL LIABILITIES




 Catatan atas laporan keuangan konsolidasian merupakan bagian yang      The accompanying notes to the consolidated financial statements form
     tidak terpisahkan dari laporan keuangan konsolidasian secara            an integral part of these consolidated financial statements.
                               keseluruhan.
Page 179
                                                   PT AVIA AVIAN Tbk
                                          DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                      Lampiran 1/3 Schedule

LAPORAN POSISI KEUANGAN                                                                         CONSOLIDATED STATEMENTS
KONSOLIDASIAN                                                                                         OF FINANCIAL POSITION
31 DESEMBER 2023 DAN 2022                                                                  AS AT 31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                                 (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                                 unless otherwise stated)


                                                           31 Desember/          31 Desember/
                                             Catatan/      31 December           31 December
                                              Notes            2023                  2022

EKUITAS                                                                                                                           EQUITY

Ekuitas yang dapat diatribusikan                                                                                  Equity attributable to
  kepada pemilik entitas induk                                                                                   owners of the parent

Modal saham - nilai nominal                                                                        Share capital - Rp10 par value
  Rp10 (nilai penuh) per saham                                                                           (full amount) per share
  Modal dasar - 200.000.000.000                                                                   Authorised - 200,000,000,000
  saham                                                                                                                     shares
  Modal ditempatkan dan disetor                                                                           Issued and fully paid -
  penuh - 61.953.555.600 saham                   19                619,536               619,536        61,953,555,600 shares
Tambahan modal disetor                           20              7,793,218             7,793,218        Additional paid-in capital
Saham treasuri                                   19                (16,369)                    -                  Treasury shares
                                                                                                               Revaluation surplus
Surplus revaluasi aset tetap                     11                  229,406             226,494                   of fixed assets
Perubahan nilai wajar atas                                                                                          Changes in fair
  investasi pada surat                                                                                       value of investment
  utang negara                                   9                   (56,408)           (138,276)          in government bonds
Bagian penghasilan komprehensif                                                                    Share of other comprehensive
  lain dari ventura bersama                                               85                  85         income of joint venture
Keuntungan pengukuran                                                                                   Remeasurement gain on
  kembali liabilitas imbalan                                                                                    post-employment
  pascakerja                                                           9,921              13,259                  benefits liability
Saldo laba                                                                                                      Retained earnings
- Ditentukan penggunaannya                       21                124,000               124,000                    Appropriated -
- Belum ditentukan penggunaannya                                 1,210,978               931,790                 Unappropriated -

Total                                                            9,914,367             9,570,106                                   Total
Kepentingan nonpengendali                                            7,122                 4,779               Non-controlling interests

TOTAL EKUITAS                                                    9,921,489             9,574,885                        TOTAL EQUITY

TOTAL LIABILITAS                                                                                                   TOTAL LIABILlTlES
  DAN EKUITAS                                                  11,166,987             10,792,122                       AND EQUITY




 Catatan atas laporan keuangan konsolidasian merupakan bagian yang      The accompanying notes to the consolidated financial statements form
     tidak terpisahkan dari laporan keuangan konsolidasian secara            an integral part of these consolidated financial statements.
                               keseluruhan.
Page 180
                                                  PT AVIA AVIAN Tbk
                                         DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                     Lampiran 2/1 Schedule

LAPORAN LABA RUGI DAN PENGHASILAN                                     CONSOLIDATED STATEMENTS OF PROFIT OR LOSS
KOMPREHENSIF LAIN KONSOLIDASIAN                                                AND OTHER COMPREHENSIVE INCOME
UNTUK TAHUN YANG BERAKHIR                                                                   FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022                                                              31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                       (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                       unless otherwise stated)

                                                          31 Desember/          31 Desember/
                                            Catatan/      31 December           31 December
                                             Notes            2023                  2022

PENDAPATAN NETO                                 24              7,016,882             6,694,171                       NET REVENUES

BEBAN POKOK PENJUALAN                           25             (3,833,546)           (3,976,771)            COST OF GOODS SOLD

LABA BRUTO                                                      3,183,336             2,717,400                        GROSS PROFIT

Beban penjualan                                 26             (1,240,237)           (1,027,025)                   Selling expenses
                                                                                                         General and administrative
Beban umum dan administrasi                     26                  (226,090)           (214,622)                         expenses
Penghasilan keuangan                            28                   286,259             293,722                    Finance income
Beban keuangan                                  29                    (4,077)             (6,463)                      Finance costs
Bagian atas laba/(rugi)                                                                                       Share of profit/(loss) of
  ventura bersama                               12                       898              (1,426)                   a joint venture
Penghasilan/(beban) lain-lain, neto             27                    (7,946)            (16,339)      Other income/(expenses), net

LABA SEBELUM BEBAN                                                                                              PROFIT BEFORE
  PAJAK PENGHASILAN                                             1,992,143             1,745,247           INCOME TAX EXPENSE

Beban pajak penghasilan                        18c                  (349,047)           (344,882)                  Income tax expense

LABA TAHUN BERJALAN                                             1,643,096             1,400,365              PROFIT FOR THE YEAR

PENGHASILAN/(RUGI)                                                                                       OTHER COMPREHENSIVE
 KOMPREHENSIF LAIN                                                                                              INCOME/(LOSS)

Pos yang tidak akan                                                                                            Items that will not be
  direklasifikasi ke laba rugi:                                                                      reclassified to profit or loss:
Bagian dari penghasilan
  komprehensif lain ventura                                                                            Share of other comprehensive
  bersama                                       12                         -                    85        income of a joint venture
                                                                                                              Revaluation surplus of
Surplus revaluasi aset tetap                    11                     2,912              12,946                       fixed assets
Kerugian pengukuran                                                                                            Remeasurement loss
  kembali atas liabilitas                                                                                     on post-employment
  imbalan pascakerja                           17b                    (4,330)              (3,902)                  benefits liability
Pajak tangguhan terkait                        18d                       953                  858               Related deferred tax

                                                                        (465)               9,987

Pos yang akan direklasifikasi                                                                          Item that will be reclassified
  ke laba rugi:                                                                                                  to profit or loss:
                                                                                                               Changes in fair value
Perubahan nilai wajar atas investasi                                                                               of investment in
  pada surat utang negara                       9                    81,868             (137,441)               government bonds

Total penghasilan/(rugi)                                                                                Total other comprehensive
  komprehensif lain, neto                                            81,403             (127,454)               income/(loss), net

TOTAL PENGHASILAN                                                                                        TOTAL COMPREHENSIVE
  KOMPREHENSIF TAHUN                                                                                             INCOME FOR
  BERJALAN                                                      1,724,499             1,272,911                    THE YEAR




Catatan atas laporan keuangan konsolidasian merupakan bagian yang      The accompanying notes to the consolidated financial statements form
    tidak terpisahkan dari laporan keuangan konsolidasian secara            an integral part of these consolidated financial statements.
                              keseluruhan.
Page 181
                                                  PT AVIA AVIAN Tbk
                                         DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                     Lampiran 2/2 Schedule

LAPORAN LABA RUGI DAN PENGHASILAN                                   CONSOLIDATED STATEMENTS OF PROFIT OR LOSS
KOMPREHENSIF LAIN KONSOLIDASIAN                                              AND OTHER COMPREHENSIVE INCOME
UNTUK TAHUN YANG BERAKHIR                                                                 FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022                                                            31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                     (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                     unless otherwise stated)

                                                          31 Desember/        31 Desember/
                                            Catatan/      31 December         31 December
                                             Notes            2023                2022

LABA TAHUN BERJALAN
  YANG DAPAT DIATRIBUSIKAN                                                                                PROFIT FOR THE YEAR
  KEPADA:                                                                                                  ATTRIBUTABLE TO:
Pemilik entitas induk                                           1,642,166           1,400,561                Owners of the parent
Kepentingan nonpengendali                                             930                (196)             Non-controlling interests

TOTAL                                                           1,643,096           1,400,365                                    TOTAL

TOTAL PENGHASILAN
  KOMPREHENSIF TAHUN                                                                                   TOTAL COMPREHENSIVE
  BERJALAN YANG DAPAT                                                                                  INCOME FOR THE YEAR
  DIATRIBUSIKAN KEPADA:                                                                                   ATTRIBUTABLE TO:
Pemilik entitas induk                                           1,723,608           1,273,081               Owners of the parent
Kepentingan nonpengendali                                             891                (170)            Non-controlling interests

TOTAL                                                           1,724,499           1,272,911                                    TOTAL

Laba per saham dasar dan dilusian                                                                   Basic and diluted earnings per
  yang dapat diatribusikan kepada                                                                        share attributable to the
  pemilik entitas induk                         22                  26.51                 22.61             owners of the parent




Catatan atas laporan keuangan konsolidasian merupakan bagian yang    The accompanying notes to the consolidated financial statements form
    tidak terpisahkan dari laporan keuangan konsolidasian secara          an integral part of these consolidated financial statements.
                              keseluruhan.
Page 182
                                                                                                                         PT AVIA AVIAN Tbk
                                                                                                                DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                                                                                                Lampiran 3 Schedule

LAPORAN PERUBAHAN EKUITAS KONSOLIDASIAN                                                                                                                                                                 CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
UNTUK TAHUN YANG BERAKHIR 31 DESEMBER 2023 DAN 2022                                                                                                                                                      FOR THE YEARS ENDED 31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                                                                                                                                                             (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                                                                                                                                                             unless otherwise stated)


                                                                              Ekuitas yang dapat diatribusikan kepada pemilik entitas induk/Equity attributable to owners of the parent
                                                                                                                                             Perubahan
                                                                                                                                                 nilai
                                                                                                                                              wajar atas         Keuntungan/
                                                                                                                        Bagian dari        investasi pada         (kerugian)
                                                 Modal saham                                           Surplus         penghasilan           surat utang         pengukuran
                                                 ditempatkan                                          revaluasi       komprehensif             negara/               kembali
                                                  dan disetor       Tambahan                             aset               lain              Changes         liabilitas imbalan          Saldo laba/                          Kepentingan
                                                    penuh/            modal                             tetap/      ventura bersama/            in fair          pascakerja/           Retained earnings                            non
                                                    Issued           disetor/        Saham          Revaluation       Share of other          value of       Remeasurement                            Belum                    pengendali/       Total
                                                   and fully        Additional      treasuri/          surplus       comprehensive        investment in        gain/(loss) on      Ditentukan       ditentukan                     Non-        ekuitas/
                                      Catatan/    paid share          paid-in       Treasury           of fixed         income of a        government       post-employment penggunaanya/ penggunaanya/                         controlling      Total
                                       Notes        capital           capital        shares            assets          joint venture           bonds         benefits liability   Appropriated Unappropriated     Total          interests      equity

Saldo per 1 Januari 2022                              619,536         7,793,218               -          213,548                    -               (835)            16,329           112,000         658,393    9,412,189            3,431     9,415,620        Balance as at 1 January 2022

Pembentukan cadangan umum               21                      -              -              -                  -                  -                   -                  -            12,000        (12,000)            -               -             -      Appropriation for general reserve
Dividen                                 23                      -              -              -                  -                  -                   -                  -                 -     (1,115,164)   (1,115,164)              -    (1,115,164)                            Dividends
Penerbitan saham entitas anak
   kepada kepentingan                                                                                                                                                                                                                                        Issuance of a subsidiary's shares to
   nonpengendali                                                -              -              -                 -                  -                   -                  -                   -             -            -            1,518         1,518           non-controlling interests
Laba tahun berjalan                                             -              -              -                 -                  -                   -                  -                   -     1,400,561    1,400,561             (196)    1,400,365                      Profit for the year
Rugi komprehensif lain                                          -              -              -            12,946                 85            (137,441)            (3,070)                  -             -     (127,480)              26      (127,454)            Other comprehensive loss

Saldo per 31 Desember 2022                            619,536         7,793,218               -          226,494                  85            (138,276)            13,259           124,000         931,790    9,570,106            4,779     9,574,885    Balance as at 31 December 2022

Dividen                                 23                      -              -              -                  -                  -                   -                  -                  -    (1,362,978)   (1,362,978)              -    (1,362,978)                             Dividends
Penerbitan saham entitas anak
   kepada kepentingan                                                                                                                                                                                                                                      Issuance of a subsidiary’s shares to
   nonpengendali                                                -              -             -                  -                   -                  -                  -                   -             -            -            1,452         1,452         non-controlling interests
Pembelian saham treasuri                19                      -              -       (16,369)                 -                   -                  -                  -                   -             -      (16,369)               -       (16,369)        Purchase of treasury shares
Laba tahun berjalan                                             -              -             -                  -                   -                  -                  -                   -     1,642,166    1,642,166              930     1,643,096                    Profit for the year
Penghasilan komprehensif lain                                   -              -             -              2,912                   -             81,868             (3,338)                  -             -       81,442              (39)       81,403        Other comprehensive income

Saldo per 31 Desember 2023                            619,536         7,793,218        (16,369)          229,406                  85             (56,408)             9,921           124,000       1,210,978    9,914,367            7,122     9,921,489    Balance as at 31 December 2023




                                Catatan atas laporan keuangan konsolidasian merupakan bagian yang tidak                                                                        The accompanying notes to the consolidated financial statements form an
                                   terpisahkan dari laporan keuangan konsolidasian secara keseluruhan.                                                                                 integral part of these consolidated financial statements.
Page 183
                                                   PT AVIA AVIAN Tbk
                                          DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                      Lampiran 4/1 Schedule

LAPORAN ARUS KAS KONSOLIDASIAN                                             CONSOLIDATED STATEMENTS OF CASH FLOWS
UNTUK TAHUN YANG BERAKHIR                                                                     FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022                                                                31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                         (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                         unless otherwise stated)


                                                            31 Desember/          31 Desember/
                                             Catatan/       31 December           31 December
                                              Notes             2023                  2022

ARUS KAS DARI                                                                                                      CASH FLOWS FROM
  AKTIVITAS OPERASI                                                                                          OPERATING ACTIVITIES
Penerimaan kas dari pelanggan                                        6,850,984           6,781,888          Cash received from customers
Pembayaran ke pemasok                                               (4,397,297)         (4,598,330)                Payments to suppliers
Pembayaran ke karyawan                                                (707,405)           (659,079)               Payments to employees

Kas yang diperoleh dari operasi                                     1,746,282            1,524,479        Cash generated from operations
Penerimaan lain-lain                                                   12,664               11,601                          Other receipts
Penerimaan penghasilan bunga                                          308,589              302,422            Receipts of finance income
Pembayaran pajak                                                                                                  Payments of corporate
  penghasilan badan                          18b, 18c                (482,000)            (377,003)                       income taxes

Arus kas neto diperoleh dari                                                                             Net cash flows generated from
  aktivitas operasi                                                 1,585,535            1,461,499                operating activities

ARUS KAS DARI                                                                                                       CASH FLOWS FROM
  AKTIVITAS INVESTASI                                                                                         INVESTING ACTIVITIES
Penerimaan dari pelepasan                                                                                       Proceeds from disposal of
  aset tetap                                     11                    14,094                16,398                            fixed assets
Penerimaan dari penjualan investasi                                                                      Proceeds from sale of investment
  pada surat utang negara                                           1,128,447            1,125,162                 in government bonds
Pembelian aset tetap                                                 (246,181)            (173,684)               Purchase of fixed assets
Perolehan aset hak-guna                                               (14,289)             (66,285)        Additions of right-of-use assets
Penambahan aset takberwujud                                            (8,667)             (10,909)          Additions of intangible assets
Penambahan investasi pada                                                                                       Additions of investment in
  reksa dana                                                          (20,000)                     -                         mutual funds
Penambahan investasi                                                                                                Additions of short-term
  jangka pendek                                                     (1,740,000)                    -                          investments
Penambahan investasi pada                                                                                       Additions of investment in
  surat utang negara                                                 (196,300)            (316,500)                   government bonds
Penambahan investasi                                                                                              Additions of investments
  pada ventura bersama                           12                          -              (14,250)                       in joint venture

Arus kas neto (digunakan untuk)/                                                                                Net cash flows (used in)/
  diperoleh dari                                                                                                        provided from
  aktivitas investasi                                               (1,082,896)            559,932                  investing activities

ARUS KAS DARI                                                                                                       CASH FLOWS FROM
  AKTIVITAS PENDANAAN                                                                                          FINANCING ACTIVITIES
Penerimaan pinjaman bank                                                    -                32,535             Proceeds from bank loans
Pembayaran pinjaman bank                                                    -               (33,206)               Payment of bank loans
Akuisisi saham treasuri                          19                   (16,369)                    -          Acquisition of treasury shares
Pembayaran liabilitas sewa                       15                   (58,836)              (25,374)           Payments of lease liabilities
Pembayaran beban bunga                           29                    (4,077)               (6,463)         Payment of interest expenses
Penerbitan saham entitas anak kepada                                                                       Issuance of subsidiary’s shares
  kepentingan nonpengendali                                              1,452               1,518            to non-controlling interests
Pembayaran dividen tunai                         23                 (1,362,978)         (1,115,164)           Payments of cash dividends

Arus kas neto digunakan untuk                                                                                      Net cash flows used in
  aktivitas pendanaan                                               (1,440,808)         (1,146,154)                 financing activities




Catatan atas laporan keuangan konsolidasian merupakan bagian yang       The accompanying notes to the consolidated financial statements form an
    tidak terpisahkan dari laporan keuangan konsolidasian secara                integral part of these consolidated financial statements.
                              keseluruhan.
Page 184
                                                   PT AVIA AVIAN Tbk
                                          DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                       Lampiran 4/2 Schedule

LAPORAN ARUS KAS KONSOLIDASIAN                                             CONSOLIDATED STATEMENTS OF CASH FLOWS
UNTUK TAHUN YANG BERAKHIR                                                                     FOR THE YEARS ENDED
31 DESEMBER 2023 DAN 2022                                                                31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                         (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                         unless otherwise stated)


                                                            31 Desember/         31 Desember/
                                             Catatan/       31 December          31 December
                                              Notes             2023                 2022

                                                                                                       NET (DECREASE)/INCREASE IN
(PENURUNAN)/KENAIKAN NETO                                                                                        CASH AND CASH
  KAS DAN SETARA KAS                                                 (938,169)            875,277                  EQUIVALENTS

                                                                                                      CASH AND CASH EQUIVALENTS
KAS DAN SETARA KAS DAN                                                                                  AND BANK OVERDRAFT AT
  CERUKAN AWAL TAHUN                                                2,163,491           1,288,214            BEGINNING OF YEAR

                                                                                                          CASH, CASH EQUIVALENTS
KAS, SETARA KAS DAN CERUKAN                                                                              AND BANK OVERDRAFT AT
  AKHIR TAHUN                                  4, 16                1,225,322           2,163,491                  END OF YEAR

Lihat Catatan 32a untuk aktivitas nonkas.                                                  Refer to Note 32a for non-cash activities.




Catatan atas laporan keuangan konsolidasian merupakan bagian yang      The accompanying notes to the consolidated financial statements form an
    tidak terpisahkan dari laporan keuangan konsolidasian secara               integral part of these consolidated financial statements.
                              keseluruhan.
Page 185
                                             PT AVIA AVIAN Tbk
                                    DAN ENTITAS ANAK/AND SUBSIDIARIES

                                              Lampiran 5/1 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                     NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                          FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                          31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                   (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                   unless otherwise stated)


1.   UMUM                                                   1.   GENERAL

     a.   Pendirian dan informasi umum Perusahaan                a.   The Company’s establishment and general
                                                                      information

          PT Avia Avian Tbk (“Perusahaan”) didirikan                  PT Avia Avian Tbk (the “Company”) is
          berdasarkan Akta Pendirian No. 6 tanggal 1                  established based on Deed of Establishment
          Maret 1983, yang dibuat di hadapan Indrawati                No. 6 dated 1 March 1983, made by Indrawati
          Setiabudhi, S.H., notaris di Malang, yang                   Setiabudhi, S.H., notary in Malang, that was
          diubah dengan akta No. 63 tanggal                           amended based on Deed No. 63 dated 23 May
          23 Mei 1983 yang dibuat di hadapan notaris                  1983 by the same notary. The Company’s
          yang sama. Akta Perubahan Perusahaan                        Deeds of Amendments have been approved
          tersebut     telah   disahkan    berdasarkan                based on the Decision of the Department of
          Keputusan Departemen Kehakiman Republik                     Justice of the Republic of Indonesia dated 5 July
          Indonesia tertanggal 5 Juli 1983 dengan                     1983     with    Decision     Letter  No.    C2-
          Surat Keputusan No. C2-4948.HT.01.01.Th83                   4948.HT.01.01.Th83 and was published in State
          dan    telah     diumumkan    dalam    Berita               Gazette No. C2-4948.HT.01.01.Th83 of the
          Negara     Republik    Indonesia  No.    C2-                Republic of Indonesia.
          4948.HT.01.01.Th83.

          Anggaran Dasar Perusahaan telah mengalami                   The Company’s Articles of Association have
          beberapa kali perubahan. Perubahan terakhir                 been amended several times. The latest
          dibuat melalui Akta Notaris Liestiani Wang,                 amendment was made through Notarial Deed
          S.H., M.Kn., No. 3 tanggal 4 Agustus 2021,                  No. 3 of Liestiani Wang, S.H., M.Kn., dated
          sehubungan       dengan     perubahan    status             4 August 2021, regarding the change of the
          perusahaan dari perseroan tertutup menjadi                  Company’s status from a limited company to a
          perseroan      terbuka,     perubahan    nama               public company, the change in the Company’s
          Perusahaan dari PT Avia Avian menjadi PT                    name from PT Avia Avian to PT Avia Avian Tbk,
          Avia Avian Tbk, peningkatan modal dasar                     an increase in authorised share capital, changes
          Perusahaan, perubahan nilai nominal saham,                  in the share par value, approval for public
          persetujuan pelaksanaan penawaran umum,                     offering, approval for Employee Stock Allocation
          persetujuan pelaksanaan program Alokasi                     (“ESA”), rearrangement of the Company’s
          Saham Karyawan (“ESA”), penyusunan                          purposes and objectives and activities,
          kembali maksud dan tujuan serta kegiatan                    reaffirmation of the Company’s Board of
          usaha Perusahaan, penegasan kembali Dewan                   Commissioners and Directors, approval of the
          Komisaris      dan      Direksi    Perusahaan,              change in Articles of Association in accordance
          persetujuan perubahan Anggaran Dasar sesuai                 with Regulation No. IX.J.1, Financial Services
          dengan Peraturan No. IX.J.1, Peraturan                      Authority’s Regulation (“POJK”) No. 15/2020 and
          Otoritas Jasa Keuangan (“POJK”) No. 15/2020                 POJK No. 33/2014 and appointment of the
          dan POJK No. 33/2014, dan penetapan                         Company’s controlling interests in accordance
          pengendali Perusahaan sesuai POJK No.                       with POJK No. 3/2021. This amendment has
          3/2021. Perubahan anggaran dasar ini telah                  been approved by the Minister of Law and
          disetujui oleh Menteri Hukum dan Hak Asasi                  Human Rights of the Republic of Indonesia in its
          Manusia Republik Indonesia melalui Surat                    Decree No. AHU-0043612.AH.01.02.TAHUN
          Keputusan       No.    AHU-0043612.AH.01.02.                2021 dated 12 August 2021.
          TAHUN 2021 tanggal 12 Agustus 2021.

          Berdasarkan Anggaran Dasar Perusahaan,                      Based on the Company’s Articles of Association,
          ruang lingkup kegiatan Perusahaan antara lain               the scope of activities of the Company comprises
          bergerak dalam bidang industri pengolahan                   the processing industry and wholesale trading.
          dan     perdagangan     besar.    Perusahaan                The Company’s head office is located in
          berkantor pusat di Sidoarjo dan memiliki pabrik             Sidoarjo, with factories in Sidoarjo and Serang.
          di Sidoarjo dan Serang.

          Perusahaan memulai operasi komersialnya                     The Company started its commercial operations
          pada tahun 1983.                                            in 1983.
Page 186
                                            PT AVIA AVIAN Tbk
                                   DAN ENTITAS ANAK/AND SUBSIDIARIES

                                            Lampiran 5/2 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                   NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                        FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                        31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                 (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                 unless otherwise stated)


1.   UMUM (lanjutan)                                      1.   GENERAL (continued)

     b.   Penawaran umum saham Perusahaan                      b.   Public offering of the Company’s shares

          Berdasarkan Akta Notaris No. 3 tanggal                    Based on Notarial Deed No. 3 dated 4 August
          4 Agustus 2021 oleh Notaris Liestiani Wang,               2021, by Notary Liestiani Wang, S.H., M.Kn.,
          S.H., M.Kn., notaris di Jakarta Selatan,                  notary in South Jakarta, this amendment was
          perubahan ini telah disahkan oleh Menteri                 approved by the Minister of Law and Human
          Hukum dan Hak Asasi Manusia dengan Surat                  Rights under Decision Letter No. AHU-
          Keputusan              No.             AHU-               0043612.AH.01.02.TAHUN 2021 dated 12
          0043612.AH.01.02.TAHUN 2021 tanggal 12                    August 2021, the shareholders of the Company
          Agustus 2021, para pemegang saham                         decided and approved matters, including the
          Perusahaan memutuskan dan menyetujui hal-                 changes of the Company’s status from a limited
          hal diantaranya perubahan status Perusahaan               company to a public company and the
          dari perseroan tertutup menjadi perseroan                 Company’s name from PT Avia Avian to PT Avia
          terbuka dan perubahan nama Perusahaan dari                Avian Tbk.
          PT Avia Avian menjadi PT Avia Avian Tbk.

          Dalam rangka penawaran umum perdana                       In relation to the initial public offering of the
          saham Perusahaan, Perusahaan mendapatkan                  Company’s shares, the Company obtained the
          Surat Pemberitahuan Efektif Pernyataan                    Notification Letter of Statement of Effective
          Pendaftaran No. S-223/D.04/2021 tertanggal                Registration      No.     S-223/D.04/2021    dated
          30 November 2021 dari Otoritas Jasa                       30 November 2021 from the Financial Services
          Keuangan      (“OJK”)   untuk   melakukan                 Authority (“OJK”) to conduct an initial public
          penawaran      umum   perdana    sebanyak                 offering of 6,200,000,000 shares to the public
          6.200.000.000 lembar saham dengan nilai                   with a par value of Rp10 (full amount) per share
          nominal Rp10 (angka penuh) per lembar                     at an offering price of Rp930 (full amount) per
          saham dan harga penawaran sebesar Rp930                   share. All of the shares offered to the public in
          (angka penuh) per lembar saham. Seluruh                   the initial public offering were new shares issued
          saham yang ditawarkan ke masyarakat pada                  by the Company. Effective on 8 December
          saat penawaran umum perdana berasal dari                  2021, the Company’s shares have been listed on
          saham baru yang diterbitkan Perusahaan.                   the Indonesia Stock Exchange (“IDX”).
          Efektif tanggal 8 Desember 2021, saham
          Perusahaan telah dicatatkan di Bursa Efek
          Indonesia (“BEI”).

          Berdasarkan Rapat Umum Pemegang Saham                     Based on the Annual General Shareholders
          Tahunan tanggal 7 Desember 2023, yang                     Meeting dated 7 December 2023, which was
          berita acaranya dituangkan dalam Akta Notaris             notarised by Notarial Deed No. 5 dated
          No. 5 tanggal 7 Desember 2023 dari Notaris                7 December 2023, of Notary Dr. Susanti, S.H.,
          Dr. Susanti, S.H., M.Kn., para pemegang                   M.Kn., the shareholders agreed to repurchase
          saham menyetujui untuk melakukan pembelian                1,425,000,000 ordinary shares of the Company
          kembali sebanyak-banyaknya 1.425.000.000                  through a transaction at the IDX (Notes 19 and
          lembar saham biasa Perusahaan melalui                     35).
          pembelian pada BEI (Catatan 19 dan 35).

     c.   Entitas induk dan entitas induk utama                c.   Parent and ultimate parent entity

          PT Wahana Lancar Rejeki dan PT Tancorp                    PT Wahana Lancar Rejeki and PT Tancorp
          Surya Sentosa merupakan entitas pengendali                Surya Sentosa are the controlling interests of the
          Perusahaan. Pemilik manfaat dari Perusahaan               Company. The beneficial owners of the
          adalah Wijono Tanoko, Hermanto Tanoko,                    Company are Wijono Tanoko, Hermanto
          Ruslan Tanoko, dan Robert Christian Tanoko.               Tanoko, Ruslan Tanoko and Robert Christian
                                                                    Tanoko.
Page 187
                                                              PT AVIA AVIAN Tbk
                                                     DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                               Lampiran 5/3 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                                                   NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                                                        FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                                                        31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                                                 (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                                                 unless otherwise stated)


1.   UMUM (lanjutan)                                                                  1.   GENERAL (continued)

     d.   Entitas anak yang dikonsolidasi                                                  d.     Consolidated subsidiaries

          Pada tanggal 31 Desember 2023 dan 2022,                                                 As at 31 December 2023 and 2022, the
          Perusahaan memiliki entitas anak dengan                                                 Company has subsidiaries with effective
          kepemilikan efektif sebagai berikut:                                                    percentage of ownership as follows:
                                                                                              Dimulainya
                                                                                                kegiatan          Persentase
                                                                                               komersial/        kepemilikan/
                                                                                            Commencement          Percentage              Total aset/
                 Entitas anak/           Domisili/            Bidang usaha/                  of commercial       of ownership            Total assets
                 Subsidiaries            Domicile           Nature of business                 operations       2023      2022        2023            2022

          Kepemilikan langsung/Direct ownership

          PT Tirtakencana
             Tatawarna
             (“PT TKTW”)a)               Surabaya           Perdagangan/Trading                   2000          99.99%   99.99%       3,830,103     3,573,542

          PT Solusi Rumah                                  Perdagangan dan jasa/
             Praktis (“PT SRP”)          Surabaya           Trading and service                   2018          99.99%   99.99%          2,076          2,999

          PT Multipro Paint                               Perdagangan dan industri/
             Indonesia (“PT MPI”)         Jakarta           Trading and industry                  2008          67.00%   67.00%         31,834         25,476

          Kepemilikan tidak langsung/Indirect ownership

          Melalui PT TKTW/Through PT TKTW
          PT Tirtakencana
             Batamindo
             (“PT TKBI”)             Batam                  Perdagangan/Trading                   2010          99.98%   99.98%         34,982         33,447

          a)
               dan entitas anak/and subsidiaries


     e.   Dewan Komisaris dan Direksi, Komite Audit                                        e.     Board of Commissioners and Directors, Audit
          dan karyawan                                                                            Committee and employees

          Susunan Dewan Komisaris dan Direksi pada                                                The compositions of the Company’s Board of
          tanggal 31 Desember 2023 dan 2022 adalah                                                Commissioners    and    Directors    as   at
          sebagai berikut:                                                                        31 December 2023 and 2022 are as follows:

                                                            2023                                         2022

          Dewan Komisaris                                                                                                  Board of Commissioners
          Komisaris Utama                            Hermanto Tanoko                            Hermanto Tanoko             President Commissioner
          Komisaris                                  Mohammad Noor                              Mohammad Noor                         Commissioner
                                                     Rachman Soejoeti                           Rachman Soejoeti

          Direksi                                                                                                                            Directors
          Direktur Utama                               Wijono Tanoko                           Wijono Tanoko                          President Director
          Wakil Direktur Utama                         Ruslan Tanoko                           Ruslan Tanoko                     Vice President Director
          Direktur                                 Robert Christian Tanoko                 Robert Christian Tanoko                              Director
          Direktur                                   Kurnia Hadi Sinanto                     Kurnia Hadi Sinanto                                Director
          Direktur                                  Angelica Tanisia Jozar                  Angelica Tanisia Jozar                              Director

          Susunan komite audit pada tanggal 31                                                    The members of Company’s Audit Committee
          Desember 2023 dan 2022 adalah sebagai                                                   as at 31 December 2023 and 2022 are as
          berikut:                                                                                follows:

          Komite Audit                                                                                                                Audit Committee
          Ketua                                            Mohammad Noor Rachman Soejoeti                                                       Chief
          Anggota                                              Fitradewata Teramihardja                                                       Member
          Anggota                                               Sammy TS Lalamentik                                                           Member

          Pada tanggal 31 Desember 2023 dan 2022,                                                 As at 31 December 2023 and 2022, the Group
          Grup memiliki masing-masing 1.422 dan 1.274                                             had a total of 1,422 and 1,274 permanent
          orang karyawan tetap (tidak diaudit).                                                   employees, respectively (unaudited).
Page 188
                                             PT AVIA AVIAN Tbk
                                    DAN ENTITAS ANAK/AND SUBSIDIARIES

                                             Lampiran 5/4 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                    NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                         FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                         31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                  (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                  unless otherwise stated)


1.   UMUM (lanjutan)                                       1.   GENERAL (continued)

     f.   Tanggal penyelesaian laporan keuangan                 f.   Completion date of          the   consolidated
          konsolidasian                                              financial statements

          Laporan keuangan konsolidasian Perusahaan                  The consolidated financial statements of the
          dan entitas anak (bersama-sama “Grup”)                     Company and subsidiaries (together the
          diotorisasi oleh Direksi Perusahaan pada                   “Group”) were authorised by the Directors of the
          tanggal 27 Februari 2024.                                  Company on 27 February 2024.


2.   INFORMASI      KEBIJAKAN      AKUNTANSI      YANG     2.   MATERIAL            ACCOUNTING               POLICY
     MATERIAL                                                   INFORMATION

     a.   Dasar penyusunan         laporan    keuangan          a.   Basis of preparation of the consolidated
          konsolidasian                                              financial statements

          Laporan keuangan konsolidasian telah                       The consolidated financial statements have
          disusun dan disajikan sesuai dengan Standar                been prepared and presented in accordance
          Akuntansi Keuangan Indonesia (“SAK”), yang                 with Indonesian Financial Accounting Standards
          mencakup Pernyataan Standar Akuntansi                      (“SAK”), which comprise the Statements of
          Keuangan (“PSAK”) dan Interpretasi Standar                 Financial Accounting Standards (“PSAK”) and
          Akuntansi      Keuangan        (“ISAK”)  yang              Interpretations    of    Financial  Accounting
          dikeluarkan oleh Dewan Standar Akuntansi                   Standards (“ISAK”) issued by the Financial
          Keuangan (“DSAK”) Ikatan Akuntan Indonesia                 Accounting Standards Board (“DSAK”) of the
          serta Peraturan No. VIII.G.7 tentang                       Indonesian Institute of Accountants and
          “Penyajian dan Pengungkapan Laporan                        Regulation     No.    VIII.G.7   on  “Financial
          Keuangan Emiten atau Perusahaan Publik”                    Statements Presentation and Disclosures for
          yang diterbitkan oleh Otoritas Jasa Keuangan.              Issuers and Public Companies” issued by
          Kebijakan ini telah diterapkan secara                      Financial Services Authority. These policies
          konsisten terhadap seluruh tahun yang                      have been consistently applied to all years
          disajikan, kecuali jika dinyatakan lain.                   presented, unless otherwise stated.

          Laporan keuangan konsolidasian disusun                     The consolidated financial statements have been
          berdasarkan konsep harga perolehan, yang                   prepared under the historical cost convention, as
          dimodifikasi oleh revaluasi tanah, properti                modified by the revaluation of land, investment
          investasi, dan aset keuangan diukur pada nilai             properties and financial assets at fair value
          wajar melalui penghasilan komprehensif lain                through other comprehensive income and fair
          dan nilai wajar melalui laba rugi, serta                   value through profit or loss, and using the
          menggunakan dasar akrual kecuali untuk                     accrual basis except for the consolidated
          laporan arus kas konsolidasian.                            statement of cash flows.

          Laporan arus kas konsolidasian disusun                     The consolidated statement of cash flow is
          dengan menggunakan metode langsung                         prepared based on the direct method by
          dengan mengelompokkan arus kas ke dalam                    classifying cash flows on the basis of operating,
          aktivitas operasi, investasi dan pendanaan.                investing, and financing activities.

          Seluruh angka dalam laporan keuangan                       Figures in the consolidated financial statements
          konsolidasian ini, dibulatkan dan disajikan                are rounded to and stated in millions of Rupiah
          dalam    jutaan   Rupiah    (“Rp”), kecuali                (“Rp”), unless otherwise specified.
          dinyatakan lain.
Page 189
                                             PT AVIA AVIAN Tbk
                                    DAN ENTITAS ANAK/AND SUBSIDIARIES

                                             Lampiran 5/5 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                    NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                         FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                         31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                  (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                  unless otherwise stated)


2.   INFORMASI KEBIJAKAN           AKUNTANSI      YANG     2.   MATERIAL       ACCOUNTING                   POLICY
     MATERIAL (lanjutan)                                        INFORMATION (continued)

     a.   Dasar penyusunan laporan            keuangan          a.   Basis of preparation of the consolidated
          konsolidasian (lanjutan)                                   financial statements (continued)

          Penyusunan laporan keuangan konsolidasian                  The preparation of consolidated financial
          sesuai dengan Standar Akuntansi Keuangan                   statements in conformity with Indonesian
          di Indonesia mengharuskan penggunaan                       Financial Accounting Standards requires the
          estimasi dan asumsi. Hal tersebut juga                     use of certain critical accounting estimates and
          mengharuskan manajemen untuk membuat                       assumptions. It also requires management to
          pertimbangan dalam proses penerapan                        exercise its judgement in the process of
          kebijakan akuntansi Grup. Area yang                        applying the Group’s accounting policies. The
          kompleks      atau    memerlukan       tingkat             areas involving a higher degree of judgement or
          pertimbangan yang lebih tinggi atau area di                complexity, or areas where assumptions and
          mana asumsi dan estimasi dapat berdampak                   estimates are material to the consolidated
          material    terhadap    laporan    keuangan                financial statements are disclosed in Note 3.
          konsolidasian diungkapkan di Catatan 3.

     b.   Perubahan     pada    Pernyataan   Standar            b.   Changes to Statements of Financial
          Akuntansi     Keuangan     (“PSAK”)    dan                 Accounting     Standards   (“PSAK”)   and
          Interpretasi Pernyataan Standar Akuntansi                  Interpretations of Statements of Financial
          Keuangan (“ISAK”)                                          Accounting Standards (“ISAK”)

          Standar berikut yang telah diterbitkan dan                 The following standards that were issued and
          efektif pada tahun buku 2023 tidak                         effective in 2023 did not result in substantial
          menimbulkan perubahan substansial terhadap                 changes to the Group’s accounting policies and
          kebijakan akuntansi Grup dan pengaruh yang                 had no material effect on the amounts reported
          material atas jumlah yang dilaporkan atas                  for the current or prior financial years.
          tahun berjalan atau tahun sebelumnya.

          •   Amendemen PSAK No. 1, “Penyajian                       •   Amendment to PSAK No. 1, “Presentation
              Laporan Keuangan”                                          Financial Statements”
          •   Amendemen PSAK No. 16, “Aset Tetap”                    •   Amendment of PSAK No. 16, “Fixed
              tentang Hasil sebelum Penggunaan yang                      Assets”     regarding  Proceeds     before
              Diintensikan                                               Intended Use
          •   Amendemen PSAK No. 25, “Kebijakan                      •   Amendment to PSAK No. 25, “Accounting
              Akuntansi, Perubahan Estimasi Akuntansi                    Policies, Changes in Accounting Estimates
              dan Kesalahan - Definisi Estimasi                          and Errors - Definition of Accounting
              Akuntansi”                                                 Estimates”
          •   Amendemen PSAK No. 46, “Pajak                          •   Amendment to PSAK No. 46, “Income
              Penghasilan - Pajak Tangguhan terkait                      Taxes - Deferred Tax related to Assets and
              Aset dan Liabilitas yang Timbul dari                       Liabilities   Arising  from     a   Single
              Transaksi Tunggal”                                         Transaction”

          Standar baru, amendemen dan penyesuaian                    New standards, amendments and annual
          tahunan yang telah diterbitkan, namun belum                improvements issued but not yet effective for
          berlaku efektif untuk tahun buku yang dimulai              the financial year beginning 1 January 2024 are
          pada 1 Januari 2024 adalah sebagai berikut:                as follows:

          Berlaku efektif sejak 1 Januari 2024                       Effective from 1 January 2024
          •   Amendemen PSAK No. 1 “Penyajian                        •   Amendment to PSAK No. 1 “Presentation
              laporan keuangan” - Klasifikasi Kewajiban                  of Financial Statements” - Classification of
              sebagai Lancar atau Tidak Lancar                           Liabilities as Current or Non-current
          •   Amendemen PSAK No. 1, “Penyajian                       •   Amendment to PSAK No. 1, “Presentation
              Laporan Keuangan” - Liabilitas Jangka                      of Financial Statements” - Non-Current
              Panjang dengan Kovenan                                     Liabilities with Covenants
          •   Amendemen PSAK No. 2 “Laporan Arus                     •   Amendment of PSAK No. 2 “Statement of
              Kas” dan amandemen PSAK No. 60                             Cash Flows” and amendment of PSAK No.
              “Instrumen Keuangan: Pengungkapan” -                       60 “Financial Instrument: Disclosure” -
              Pengaturan Pembiayaan Pemasok                              Supplier Finance Agreements
          •   Amendemen PSAK No. 10 “Pengaruh                        •   Amendment of PSAK No. 10 “Foreign
              Perubahan       Kurs    Valuta   Asing” -                  Exchange Rates” - Lack of Exchangeability
              Kekurangan Ketertukaran
Page 190
                                                PT AVIA AVIAN Tbk
                                       DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                 Lampiran 5/6 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                         NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                              FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                              31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                       (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                       unless otherwise stated)


2.   INFORMASI KEBIJAKAN             AKUNTANSI       YANG      2.   MATERIAL       ACCOUNTING                     POLICY
     MATERIAL (lanjutan)                                            INFORMATION (continued)

     b.   Perubahan     pada    Pernyataan   Standar                b.   Changes to Statements of Financial
          Akuntansi     Keuangan     (“PSAK”)    dan                     Accounting     Standards   (“PSAK”)    and
          Interpretasi Pernyataan Standar Akuntansi                      Interpretations of Statements of Financial
          Keuangan (“ISAK”) (lanjutan)                                   Accounting Standards (“ISAK”) (continued)

          Standar baru, amendemen dan penyesuaian                        New standards, amendments and annual
          tahunan yang telah diterbitkan, namun belum                    improvements issued but not yet effective for
          berlaku efektif untuk tahun buku yang dimulai                  the financial year beginning 1 January 2024 are
          pada 1 Januari 2024 adalah sebagai berikut:                    as follows:

          Berlaku efektif sejak 1 Januari 2024                           Effective from 1 January 2024
          •   Amendemen PSAK No. 46 “Pajak                               •   Amendment of PSAK No. 46 “Income
              Penghasilan”       -    Reformasi    Pajak                     Taxes” - International Tax Reform - Pillar
              Internasional Ketentuan Model Pilar Dua                        Two Model Rules
          •   Amendemen PSAK No. 73, “Sewa” - Jual                       •   Amendment to PSAK No. 73, “Leases” -
              dan Sewa-balik                                                 Sale and Leaseback


          Berlaku efektif sejak 1 Januari 2025                           Effective from 1 January 2025
          •   PSAK No. 74, “Kontrak Asuransi”                            •   PSAK No. 74, “Insurance Contracts”
          •   Amendemen PSAK No. 74, “Kontrak                            •   Amendment to PSAK No. 74, “Insurance
              Asuransi tentang Penerapan Awal PSAK                           Contracts regarding Initial Application of
              No. 74 dan PSAK No. 71 - Informasi                             PSAK No. 74 and PSAK No. 71 -
              Komparatif”                                                    Comparative Information”

          Penerapan dini atas standar baru dan revisi                    Early adoption of the        new   and   revised
          diperkenankan.                                                 standards is permitted.

          Pada saat penerbitan laporan keuangan                          As at the authorisation date of these
          konsolidasian,   Grup     masih mempelajari                    consolidated financial statements, the Group is
          dampak yang mungkin timbul dari penerapan                      still evaluating the potential impact of these
          standar dan interpretasi baru dan revisi                       new      and     amended      standards    and
          tersebut pada laporan keuangan konsolidasian                   interpretations on the Group’s consolidated
          Grup. Mulai dari 1 Januari 2024, referensi                     financial statements. Beginning 1 January
          terhadap masing-masing PSAK dan ISAK akan                      2024, references to the individual PSAKs and
          diubah sesuai dengan penerbitan oleh DSAK                      ISAKs will be changed as published by the
          Ikatan Akuntan Indonesia.                                      DSAK of Indonesian Institute of Accountants.

     c.   Prinsip-prinsip konsolidasi                               c.   Principles of consolidation

          (i)   Entitas anak                                             (i)   Subsidiaries

                Entitas anak adalah seluruh entitas                            Subsidiaries are all entities (including
                (termasuk entitas terstruktur) dimana Grup                     structured entities) over which the Group
                memiliki        pengendalian.         Grup                     has control. The Group controls an entity
                mengendalikan entitas lain ketika Grup                         when the Group is exposed to, or has
                terekspos atas, atau memiliki hak untuk,                       rights to, variable returns from its
                pengembalian      yang    bervariasi    dari                   involvement with the entity and has the
                keterlibatannya dengan entitas dan                             ability to affect those returns through its
                memiliki kemampuan untuk memengaruhi                           power over the entity. Subsidiaries are
                pengembalian         tersebut        melalui                   consolidated from the date on which
                kekuasaannya atas entitas tersebut.                            control is transferred to the Group. They
                Entitas anak dikonsolidasikan sejak                            are de-consolidated from the date on which
                tanggal di mana pengendalian dialihkan                         that control ceases.
                kepada Grup. Entitas anak tidak
                dikonsolidasikan lagi sejak tanggal dimana
                Grup kehilangan pengendalian.
Page 191
                                                PT AVIA AVIAN Tbk
                                       DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                  Lampiran 5/7 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                           NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                                FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                                31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                         (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                         unless otherwise stated)


2.   INFORMASI KEBIJAKAN              AKUNTANSI       YANG      2.   MATERIAL       ACCOUNTING                         POLICY
     MATERIAL (lanjutan)                                             INFORMATION (continued)

     c.   Prinsip-prinsip konsolidasi (lanjutan)                     c.   Principles of consolidation (continued)

          (i)   Entitas anak (lanjutan)                                   (i)   Subsidiaries (continued)

                Grup menerapkan metode akuisisi untuk                           The Group applies the acquisition method
                mencatat kombinasi bisnis. Imbalan yang                         to account for business combinations. The
                dialihkan untuk akuisisi suatu entitas anak                     consideration transferred for the acquisition
                adalah sebesar nilai wajar aset yang                            of a subsidiary is the fair value of the
                dialihkan, liabilitas yang diakui terhadap                      assets transferred, the liabilities incurred to
                pemilik pihak yang diakuisisi sebelumnya                        the former owners of the acquiree and the
                dan kepentingan ekuitas yang diterbitkan                        equity interests issued by the Group. The
                oleh Grup. Imbalan yang dialihkan                               consideration transferred includes the fair
                termasuk nilai wajar aset atau liabilitas                       value of any asset or liability resulting from
                yang timbul dari kesepakatan imbalan                            a contingent consideration arrangement.
                kontinjensi. Aset teridentifikasi yang                          Identifiable assets acquired and liabilities
                diperoleh dan liabilitas serta liabilitas                       and contingent liabilities assumed in a
                kontinjensi yang diambil alih dalam suatu                       business combination are measured
                kombinasi bisnis diukur pada awalnya                            initially at their fair values at the acquisition
                sebesar nilai wajar pada tanggal akuisisi.                      date.

                Selisih lebih imbalan yang dialihkan,                           The      excess      of   the   consideration
                jumlah setiap kepentingan nonpengendali                         transferred, the amount of any non-
                pada pihak diakuisisi dan nilai wajar pada                      controlling interest in the acquiree and the
                tanggal akuisisi kepentingan ekuitas                            acquisition-date fair value of any previous
                sebelumnya       dimiliki     oleh      pihak                   equity interest in the acquiree over the fair
                pengakuisisi pada pihak diakuisisi atas                         value of the net identifiable assets acquired
                nilai wajar aset bersih teridentifikasi yang                    is recorded as goodwill. If those amounts
                diperoleh dicatat sebagai goodwill. Jika                        are less than the fair value of the net
                jumlah tersebut lebih rendah dari nilai                         identifiable assets of the business
                wajar aset bersih teridentifikasi atas bisnis                   acquired, in the case of a bargain
                yang diakuisisi dalam kasus pembelian                           purchase, the difference is recognised
                dengan diskon, selisihnya diakui dalam                          directly in profit and loss.
                laba rugi.

                Transaksi, saldo dan keuntungan dan                             Intercompany transactions, balances and
                kerugian antar entitas Grup yang belum                          unrealised    gains  and    losses   on
                direalisasi    telah     dieliminasi.    Jika                   transactions between Group companies
                diperlukan, nilai yang dilaporkan oleh                          are eliminated. When necessary, amounts
                entitas     anak    telah    diubah    untuk                    reported by subsidiaries have been
                menyesuaikan          dengan       kebijakan                    adjusted to conform to the Group’s
                akuntansi yang diadopsi oleh Grup.                              accounting policies.

                Kepentingan nonpengendali merupakan                             Non-controlling interests represent the
                proporsi atas aset neto dan hasil usaha                         proportion of the net assets and the result
                entitas anak yang tidak diatribusikan pada                      of subsidiaries not attributable to the
                pemegang saham Perusahaan. Grup                                 shareholders of the Company. The Group
                mengakui kepentingan nonpengendali                              recognises any non-controlling interest in
                pada pihak yang diakuisisi sebesar bagian                       the acquiree at the non-controlling
                proporsional kepentingan nonpengendali                          interest’s proportionate share of the
                atas aset bersih pihak yang diakuisisi.                         acquiree’s net assets. Non-controlling
                Kepentingan nonpengendali disajikan di                          interest is reported as equity in the
                ekuitas dalam laporan posisi keuangan                           consolidated     statement   of   financial
                konsolidasian, terpisah dari pemilik entitas                    position, separate from the owner of the
                induk.                                                          parent’s entity.

                Biaya-biaya terkait akuisisi dibebankan                         Acquisition-related costs are expensed as
                pada saat terjadinya dan dicatat sebagai                        incurred and recorded as part of general
                bagian dari beban umum dan administrasi.                        and administrative expenses.
Page 192
                                                PT AVIA AVIAN Tbk
                                       DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                 Lampiran 5/8 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                           NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                                FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                                31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                         (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                         unless otherwise stated)


2.   INFORMASI KEBIJAKAN              AKUNTANSI       YANG      2.   MATERIAL       ACCOUNTING                      POLICY
     MATERIAL (lanjutan)                                             INFORMATION (continued)

     c.   Prinsip-prinsip konsolidasi (lanjutan)                     c.   Principles of consolidation (continued)

          (i)   Entitas anak (lanjutan)                                   (i)   Subsidiaries (continued)

                Dalam suatu kombinasi bisnis yang                               When the business combination is
                dilakukan     secara     bertahap,    pihak                     achieved in stages, the acquisition date fair
                pengakuisisi       mengukur        kembali                      value of the acquirer’s previously held
                kepentingan      ekuitas    yang     dimiliki                   equity interest in the acquiree is
                sebelumnya pada pihak yang diakuisisi                           remeasured to fair value at the acquisition
                pada nilai wajar tanggal akuisisi dan                           date and recorded any gains or losses
                mengakui keuntungan atau kerugian yang                          incurred through profit or loss. Any
                dihasilkan dalam laba rugi. Setiap imbalan                      contingent consideration to be transferred
                kontinjensi yang akan ditransfer oleh                           by the acquirer will be recognised at fair
                perusahaan pengakuisisi akan diakui pada                        value at the acquisition date. Contingent
                nilai wajar pada tanggal akuisisi. Imbalan                      consideration classified as equity is not re-
                kontinjensi yang diklasifikasikan sebagai                       measured and its subsequent settlement is
                ekuitas    tidak   diukur    kembali    dan                     accounted for within equity.
                penyelesaian       selanjutnya       adalah
                diperhitungkan dalam ekuitas.

          (ii) Ventura bersama                                            (ii) Joint ventures

                Pengaturan     bersama      diklasifikasikan                    Investments in joint arrangements are
                sebagai operasi bersama atau ventura                            classified as either joint operations or joint
                bersama bergantung pada hak dan                                 ventures depending on the contractual
                kewajiban kontraktual para investor bukan                       rights and obligations of each investor
                struktur hukum dari pengaturan bersama.                         rather than the legal structure of the joint
                Grup telah menilai sifat dari pengaturan                        arrangement. Group has assessed the
                bersama dan menentukan pengaturan                               nature of its joint arrangements and
                tersebut sebagai ventura bersama. Ventura                       determined them to be joint ventures. A
                bersama dicatat menggunakan metode                              joint venture is accounted for using the
                ekuitas.                                                        equity method.

                Sesuai metode ekuitas, investasi pada                           Under the equity method, the investment
                ventura bersama pada awalnya dicatat                            in a joint venture is initially recognised at
                pada biaya perolehan dan selanjutnya                            cost and adjusted thereafter to recognise
                disesuaikan untuk mengakui bagian                               the investor’s share of the post-acquisition
                investor atas laba rugi pasca akuisisi dari                     profits or losses of the investee in profit or
                pihak yang diakuisisi atas laba rugi, dan                       loss, and its share of movements in other
                bagiannya atas pergerakan penghasilan                           comprehensive income of the investee in
                komprehensif lainnya dari pihak yang                            other comprehensive income.
                diakuisisi atas penghasilan komprehensif
                lainnya.

                Dividen yang diterima atau yang akan                            Dividends received or receivable from a
                diterima dari ventura bersama diakui                            joint venture are recognised as a
                sebagai    pengurang  jumlah  tercatat                          reduction in the carrying amount of the
                investasi.                                                      investment.

                Jika bagian Grup atas kerugian ventura                          When the Group’s share of losses in a
                bersama sama dengan atau melebihi                               joint venture equals or exceeds its interest
                kepentingannya pada ventura bersama,                            in the joint ventures, including any other
                termasuk piutang tanpa agunan, Grup                             unsecured receivables, the Group does
                menghentikan     pengakuan      bagian                          not recognise further losses, unless it has
                kerugiannya,  kecuali  Grup    memiliki                         incurred legal or constructive obligations
                kewajiban legal atau konstruktif atau                           or made payments on behalf of the joint
                melakukan pembayaran atas nama ventura                          venture.
                bersama.
Page 193
                                             PT AVIA AVIAN Tbk
                                    DAN ENTITAS ANAK/AND SUBSIDIARIES

                                              Lampiran 5/9 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                    NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                         FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                         31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                  (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                  unless otherwise stated)


2.   INFORMASI KEBIJAKAN           AKUNTANSI       YANG    2.   MATERIAL       ACCOUNTING                   POLICY
     MATERIAL (lanjutan)                                        INFORMATION (continued)

     c.   Prinsip-prinsip konsolidasi (lanjutan)                c.   Principles of consolidation (continued)

          (ii) Ventura bersama (lanjutan)                            (ii) Joint ventures (continued)

              Keuntungan dan kerugian yang belum                          Unrealised     gains  and     losses    on
              direalisasi atas transaksi antara Grup dan                  transactions between the Group and a
              ventura bersama telah dieliminasi sebesar                   joint venture have been eliminated to the
              kepemilikan Grup pada ventura bersama                       extent of the Group’s interest in the joint
              tersebut.                                                   venture.

              Setiap akhir periode pelaporan, Grup                        At the end of each reporting period, the
              mengevaluasi apakah terdapat bukti                          Group assesses whether there is objective
              objektif bahwa investasi pada ventura                       evidence that investment in a joint venture
              bersama mengalami penurunan nilai.                          is impaired.

          (iii) Kombinasi bisnis entitas sepengendali                (iii) Business combinations under common
                                                                           control

              Kombinasi bisnis entitas sepengendali                      Business combinations under common
              dicatat dengan menggunakan metode                          control are accounted for using the pooling-
              penyatuan kepentingan, dimana selisih                      of-interests method, whereby the difference
              antara jumlah imbalan yang dialihkan                       between the consideration transferred and
              dengan jumlah tercatat aset neto yang                      the book value of the acquired net assets is
              diperoleh diakui sebagai bagian dari akun                  recognised as part of the “Additional paid-
              “Tambahan modal disetor” pada bagian                       in capital” account under the equity in the
              ekuitas di laporan posisi keuangan                         consolidated     statement    of    financial
              konsolidasian.                                             position.

              Dalam menerapkan metode penyatuan                          In applying the said pooling-of-interests
              kepentingan tersebut, unsur-unsur laporan                  method, the components of the financial
              keuangan dari entitas yang bergabung                       statements of the combining entities are
              disajikan    seolah-olah    penggabungan                   presented as if the combination has
              tersebut telah terjadi sejak awal periode                  occurred since the beginning of the period
              entitas yang bergabung berada dalam                        of the combining entity coming under
              kesepengendalian.                                          common control.

          (iv) Perubahan kepemilikan                                 (iv) Changes in ownership interests

              Grup memperlakukan transaksi dengan                        The Group treats transactions with non-
              kepentingan nonpengendali yang tidak                       controlling interests that do not result in a
              mengakibatkan hilangnya kontrol sebagai                    loss of control as transactions with equity
              transaksi dengan pemilik ekuitas Grup.                     owners of the Group. A change in
              Perubahan         dalam        kepemilikan                 ownership interest results in an adjustment
              menghasilkan penyesuaian antara nilai                      between the carrying amounts of the
              tercatat dari kepentingan pengendali dan                   controlling and non-controlling interests to
              nonpengendali      untuk    mencerminkan                   reflect their relative interests in the
              kepentingan      relatifnya     di    anak                 subsidiary. Any difference between the
              perusahaan.     Selisih    antara   jumlah                 amount of the adjustment to non-controlling
              penyesuaian        untuk       kepentingan                 interests and any consideration paid or
              nonpengendali dan pertimbangan yang                        received is recognised in additional paid-in
              dibayarkan atau diterima diakui dalam                      capital within equity attributable to owners
              tambahan modal disetor dalam ekuitas                       of the Group.
              yang dapat diatribusikan kepada pemilik
              Grup.
Page 194
                                              PT AVIA AVIAN Tbk
                                     DAN ENTITAS ANAK/AND SUBSIDIARIES

                                               Lampiran 5/10 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                        NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                             FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                             31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                      (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                      unless otherwise stated)


2.   INFORMASI KEBIJAKAN            AKUNTANSI       YANG      2.   MATERIAL       ACCOUNTING                       POLICY
     MATERIAL (lanjutan)                                           INFORMATION (continued)

     c.   Prinsip-prinsip konsolidasi (lanjutan)                   c.   Principles of consolidation (continued)

          (iv) Perubahan kepemilikan (lanjutan)                         (iv) Changes     in       ownership        interest
                                                                             (continued)

              Ketika Grup tidak lagi mengkonsolidasikan                      When the Group ceases to consolidate or
              atau mencatat menggunakan metode                               equity account for an investment because
              ekuitas untuk investasi karena hilangnya                       of a loss of control, joint control or
              pengendalian, pengendalian bersama atau                        significant influence, any retained interest
              pengaruh signifikan, maka kepentingan                          in the entity is remeasured to its fair value
              yang masih tersisa atas entitas diukur                         at the date when the control is lost, with
              kembali berdasarkan nilai wajarnya, pada                       the change in carrying amount recognised
              tanggal hilangnya pengendalian dengan                          in profit or loss. The fair value is the initial
              perubahan nilai tercatat diakui dalam                          carrying amount for the purposes of
              laporan laba rugi. Nilai tercatat awal                         subsequently accounting for the retained
              adalah sebesar nilai wajar untuk                               interest as an associate or financial asset.
              kepentingan       pengukuran      kembali
              kepentingan yang tersisa sebagai entitas
              asosiasi atau aset keuangan.

              Di samping itu, jumlah yang sebelumnya                         In addition, any amounts previously
              diakui pada penghasilan komprehensif lain                      recognised in other comprehensive
              sehubungan dengan entitas tersebut                             income in respect of that entity are
              dicatat seolah-olah Grup telah melepas                         accounted for as if the Group had directly
              aset atau liabilitas terkait. Hal ini dapat                    disposed of the related assets or liabilities.
              berarti bahwa jumlah yang sebelumnya                           This may mean that amounts previously
              diakui pada penghasilan komprehensif lain                      recognised in other comprehensive
              direklasifikasi ke laba rugi.                                  income are reclassified to profit or loss.

              Jika kepemilikan saham pada perusahaan                         If the ownership interest in an associate is
              asosiasi berkurang namun pengendalian                          reduced but joint control or significant
              bersama     atau      pengaruh    signifikan                   influence is retained, only a proportionate
              dipertahankan,         hanya      sebagian                     share of the amounts previously
              proporsional dari jumlah yang telah diakui                     recognised in other comprehensive
              sebelumnya          dalam       penghasilan                    income are reclassified to profit or loss
              komprehensif lain yang direklasifikasi ke                      where appropriate.
              laba atau rugi jika diperlukan.

     d.   Goodwill                                                 d.   Goodwill

          Goodwill timbul dari akuisisi entitas anak dan                Goodwill arises from the acquisition of
          merupakan selisih imbalan yang ditransfer                     subsidiaries and represents the excess of the
          terhadap kepemilikan dalam nilai wajar neto                   consideration transferred over the interest in the
          atas aset, liabilitas, dan liabilitas kontinjensi             net fair value of the net identifiable assets,
          teridentifikasi dan nilai wajar kepentingan                   liabilities and contingent liabilities of the
          nonpengendali pada pihak diakuisisi.                          acquiree and the fair value of the non-
                                                                        controlling interest in the acquiree.
Page 195
                                                 PT AVIA AVIAN Tbk
                                        DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                 Lampiran 5/11 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                       NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                            FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                            31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                     (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                     unless otherwise stated)


2.   INFORMASI KEBIJAKAN              AKUNTANSI      YANG    2.   MATERIAL       ACCOUNTING                       POLICY
     MATERIAL (lanjutan)                                          INFORMATION (continued)

     d.   Goodwill (lanjutan)                                     d.   Goodwill (continued)

          Untuk pengujian penurunan nilai, goodwill yang               For the purposes of impairment testing,
          diperoleh dalam kombinasi bisnis dialokasikan                goodwill acquired in a business combination is
          pada setiap Unit Penghasil Kas (“UPK”), atau                 allocated to each Cash-Generating Unit
          kelompok UPK, yang diharapkan dapat                          (“CGU”), or group of CGUs, that is expected to
          memberikan manfaat dari sinergi kombinasi                    benefit from the synergies of the combination.
          bisnis tersebut. Setiap unit atau kelompok unit              Each CGU or group of CGUs to which the
          yang       memperoleh       alokasi    goodwill              goodwill is allocated represents the lowest level
          menunjukkan tingkat terendah dalam entitas                   within the entity at which goodwill is monitored
          yang goodwill-nya dipantau untuk tujuan                      for internal management purposes. Goodwill is
          manajemen internal. Goodwill dipantau pada                   monitored at the operating segment level.
          level segmen operasi.

     e.   Penjabaran mata uang asing                              e.   Foreign currency translation

          Item-item yang disertakan dalam laporan                      Items included in the financial statements of
          keuangan setiap entitas anggota Grup diukur                  each of the Group’s entities are measured
          menggunakan mata uang yang sesuai dengan                     using the currency of the primary economic
          lingkungan ekonomi utama di mana entitas                     environment in which the entity operates
          beroperasi (“mata uang fungsional”).                         (the “functional currency”).

          Laporan keuangan konsolidasian disajikan                     The consolidated financial statements are
          dalam Rupiah, yang merupakan mata uang                       presented in Rupiah, which is the functional and
          fungsional dan penyajian Perusahaan.                         presentation currency of the Company.

          Transaksi dalam mata uang asing dijabarkan                   Transactions denominated in foreign currencies
          dalam     mata     uang     Rupiah       dengan              are translated into Rupiah at the exchange rate
          menggunakan kurs yang berlaku pada saat                      prevailing at the date of the transactions. At the
          transaksi dilakukan. Aset dan liabilitas moneter             reporting date, monetary assets and liabilities in
          dalam mata uang asing dijabarkan dalam mata                  foreign currencies are translated into the
          uang fungsional dengan kurs yang berlaku                     functional currency using the exchange rate
          pada tanggal pelaporan.                                      prevailing at that date.

          Keuntungan dan kerugian selisih kurs yang                    The foreign exchange gains and losses
          timbul dari penyelesaian transaksi dalam mata                resulting from the settlement of transactions in
          uang asing dan dari penjabaran aset dan                      foreign currencies and from the translation of
          liabilitas moneter dalam mata uang asing                     monetary assets and liabilities denominated in
          diakui pada laporan laba rugi konsolidasian.                 foreign currencies are recognised in the
                                                                       consolidated statement of profit or loss.

          Pada tanggal 31 Desember 2023 dan 2022,                      As at 31 December 2023 and 2022, the
          kurs, yang digunakan berdasarkan kurs tengah                 exchange rate, based on the middle rates
          yang diterbitkan Bank Indonesia, adalah                      published by Bank Indonesia, were as follows:
          sebagai berikut:

                                                     2023              2022

          1 Dolar Amerika Serikat (“Dolar AS”)          15,416             15,731       United States Dollar 1 (“US Dollar”)
          1 Yuan China (“CNY”)                           2,170              2,257                    China Yuan 1 (“CNY”)
          1 Dolar Singapura (“SGD”)                     11,712             11,659               Singapore Dollar 1 (“SGD”)
          1 Euro (“Euro”)                               17,140             16,713                           Euro 1 (“Euro”)
Page 196
                                               PT AVIA AVIAN Tbk
                                      DAN ENTITAS ANAK/AND SUBSIDIARIES

                                               Lampiran 5/12 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                         NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                              FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                              31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                       (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                       unless otherwise stated)


2.   INFORMASI KEBIJAKAN             AKUNTANSI      YANG      2.   MATERIAL       ACCOUNTING                        POLICY
     MATERIAL (lanjutan)                                           INFORMATION (continued)

     f.   Transaksi dengan pihak-pihak berelasi                    f.   Transactions with related parties

          Grup mempunyai transaksi dengan pihak                         The Group has transactions with related parties
          berelasi sesuai dengan definisi yang diuraikan                as defined in PSAK No. 7, “Related Party
          pada PSAK No. 7, “Pengungkapan Pihak-                         Disclosures”.
          Pihak Berelasi”.

          Transaksi    ini   dilakukan    berdasarkan                   The transactions are made based on terms
          persyaratan yang disetujui oleh kedua belah                   agreed by the parties.
          pihak.

          Seluruh transaksi dan saldo yang material                     All material transactions and balances with
          dengan pihak-pihak berelasi diungkapkan                       related parties are disclosed in the relevant notes
          dalam catatan atas laporan keuangan                           to the consolidated financial statements.
          konsolidasian yang relevan.

     g.   Instrumen keuangan                                       g.   Financial instruments

          Instrumen keuangan adalah setiap kontrak                      A financial instrument is any contract that gives
          yang memberikan aset keuangan bagi satu                       rise to a financial asset of one entity and a
          entitas dan liabilitas keuangan atau ekuitas                  financial liability or equity instrument of another
          bagi entitas lain.                                            entity.

          (i)   Aset keuangan                                           (i)   Financial assets

                Pengakuan dan pengukuran awal                                 Initial recognition and measurement

                Grup mengklasifikasikan aset keuangan                         The Group classifies its financial assets
                dalam kategori berikut ini:                                   into the following categories.

                (i)  aset keuangan diukur pada biaya                          (i)   financial assets measured at amortised
                     perolehan diamortisasi;                                        cost;
                (ii) aset keuangan diukur pada nilai wajar                    (ii) financial assets measured at fair value
                     melalui laba rugi (“FVTPL”); dan                               either through profit or loss (“FVTPL”);
                                                                                    and
                (iii) aset keuangan diukur pada nilai wajar                   (iii) financial assets measured at fair value
                      melalui penghasilan komprehensif lain                         through other comprehensive income
                      (“FVOCI”).                                                    (“FVOCI”).

                Klasifikasi ini tergantung pada model                         The classification depends on the Group’s
                bisnis Grup dan persyaratan kontraktual                       business model and the contractual terms
                arus kas – apakah penentuan arus kasnya                       of the cash flows when determining
                semata-mata dari pembayaran pokok dan                         whether their cash flows are solely
                bunga.                                                        payment of principal and interest.

                Grup     menentukan      klasifikasi aset                     The Group determines the classification of
                keuangan pada pengakuan awal. Untuk                           its financial assets at initial recognition. For
                investasi pada instrumen utang, hal ini                       investments in debt instruments, this will
                akan bergantung pada model bisnis                             depend on the business model in which the
                dimana investasi tersebut diadakan. Grup                      investment is held. The Group reclassifies
                mereklasifikasi investasi pada instrumen                      investments in debt instruments when and
                utang jika dan hanya jika model bisnis                        only when its business model for managing
                untuk mengelola aset tersebut berubah.                        those assets changes.
Page 197
                                                PT AVIA AVIAN Tbk
                                       DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                Lampiran 5/13 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                         NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                              FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                              31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                       (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                       unless otherwise stated)


2.   INFORMASI KEBIJAKAN             AKUNTANSI       YANG      2.   MATERIAL       ACCOUNTING                     POLICY
     MATERIAL (lanjutan)                                            INFORMATION (continued)

     g.   Instrumen keuangan (lanjutan)                             g.   Financial instruments (continued)

          (i)   Aset keuangan (lanjutan)                                 (i)   Financial assets (continued)

                Pengakuan      dan     pengukuran      awal                    Initial recognition    and     measurement
                (lanjutan)                                                     (continued)

                Pada tanggal 31 Desember 2023 dan                              As at 31 December 2023 and 2022, the
                2022, Grup memiliki aset keuangan yang                         Group has financial assets measured at
                diukur pada biaya perolehan diamortisasi,                      amortised costs, which comprise cash and
                yang terdiri dari kas dan setara kas, kas di                   cash equivalents, restricted cash in bank
                bank dan deposito berjangka yang dibatasi                      and time deposits, short-term investments,
                penggunaannya, investasi jangka pendek,                        trade receivables and other receivables
                piutang usaha, dan piutang lain-lain dari                      from third parties, financial assets
                pihak ketiga, aset keuangan yang diukur                        measured at fair value through other
                pada nilai wajar melalui penghasilan                           comprehensive income, which comprise of
                komprehensif lain, yang terdiri dari                           investment in government bonds and
                investasi pada surat utang negara, dan                         financial assets measured at fair value
                aset keuangan yang diukur pada nilai                           through profit or loss, which comprise of
                wajar melalui laba rugi, yang terdiri dari                     investment in mutual funds.
                investasi reksa dana.

                •   Aset keuangan diukur pada biaya                            •   Financial assets held at amortised cost
                    perolehan diamortisasi

                    Klasifikasi ini berlaku untuk instrumen                        This classification applies to debt
                    utang yang dikelola dalam model                                instruments which are held under a
                    bisnis “dimiliki untuk mendapatkan                             “hold to collect” business model and
                    arus kas” dan memiliki arus kas yang                           which have cash flows that meet the
                    memenuhi kriteria “semata-mata dari                            “solely payments of principal and
                    pembayaran pokok dan bunga”.                                   interest” (“SPPI”) criteria.

                    Pada pengakuan awal, aset keuangan                             At initial recognition, financial assets
                    yang tidak memiliki komponen                                   that do not have a significant financing
                    pendanaan yang signifikan, diakui                              component are recognised at their
                    sebesar     harga    transaksi.  Aset                          transaction price. Other financial
                    keuangan lainnya awalnya diakui                                assets are initially recognised at fair
                    sebesar nilai wajar dikurangi biaya                            value less related transaction costs.
                    transaksi yang terkait. Aset keuangan                          They are subsequently measured at
                    ini selanjutnya diukur sebesar biaya                           amortised cost using the effective
                    perolehan diamortisasi menggunakan                             interest rate (“EIR”) method. Any gains
                    metode suku bunga efektif (“EIR”).                             or losses on derecognition or
                    Keuntungan atau kerugian pada                                  modification of a financial asset held at
                    penghentian atau modifikasi aset                               amortised cost are recognised in profit
                    keuangan yang dicatat yang dicatat                             or loss.
                    pada biaya perolehan diamortisasi
                    diakui pada laba rugi.
Page 198
                                               PT AVIA AVIAN Tbk
                                      DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                Lampiran 5/14 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                         NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                              FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                              31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                       (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                       unless otherwise stated)


2.   INFORMASI KEBIJAKAN             AKUNTANSI       YANG      2.   MATERIAL       ACCOUNTING                     POLICY
     MATERIAL (lanjutan)                                            INFORMATION (continued)

     g.   Instrumen keuangan (lanjutan)                             g.   Financial instruments (continued)

          (i)   Aset keuangan (lanjutan)                                 (i)   Financial assets (continued)

                Pengakuan      dan    pengukuran       awal                    Initial recognition   and      measurement
                (lanjutan)                                                     (continued)

                •   Aset keuangan diukur pada nilai wajar                      •   Financial assets held at FVOCI
                    melalui penghasilan komprehensif lain

                    Klasifikasi ini berlaku untuk instrumen                        This classification applies to debt
                    utang yang dikelola dengan model                               instruments that are held under a
                    bisnis yang bertujuan untuk memiliki                           business model where they are held
                    aset     keuangan      dalam     rangka                        for collection of contractual cash flows
                    mendapatkan arus kas kontraktual                               and also for sale (“collect and sell”)
                    dan menjual dan di mana arus kasnya                            and which have cash flows that meet
                    memenuhi kriteria “semata-mata dari                            the “solely payments of principal and
                    pembayaran pokok dan bunga”.                                   interest” criteria.

                    Perubahan nilai wajar aset keuangan                            All movements in the fair value of
                    ini    dicatat    pada      penghasilan                        these financial assets are taken
                    komprehensif lain, kecuali pengakuan                           through other comprehensive income,
                    keuntungan atau kerugian penurunan                             except for the recognition of
                    nilai, pendapatan bunga (termasuk                              impairment gains or losses, interest
                    biaya transaksi menggunakan metode                             (including      transaction  costs    by
                    EIR), keuntungan atau kerugian yang                            revenue applying the effective interest
                    timbul      dari   penghentian     dan                         method), gains or losses arising on
                    keuntungan dan kerugian dari selisih                           derecognition and foreign exchange
                    kurs diakui pada laba rugi. Ketika aset                        gains      and     losses   which    are
                    keuangan dihentikan, keuntungan                                recognised in profit or loss. When the
                    atau kerugian nilai wajar kumulatif                            financial asset is derecognised, the
                    yang     sebelumnya      diakui   pada                         cumulative fair value gains or losses
                    penghasilan       komprehensif      lain                       previously       recognised   in   other
                    direklasifikasi pada laba rugi.                                comprehensive income is reclassified
                                                                                   to profit or loss.

                •   Aset keuangan diukur pada nilai wajar                      •   Financial assets held at FVTPL
                    melalui laba rugi

                    Aset yang tidak memenuhi kriteria                              Assets that do not meet the criteria for
                    untuk biaya perolehan diamortisasi                             amortised cost or FVOCI are
                    atau nilai wajar melalui penghasilan                           measured at fair value through profit
                    komprehensif lain diukur pada nilai                            or loss. A gain or loss on investment in
                    wajar melalui laporan laba rugi.                               mutual funds that is subsequently
                    Keuntungan atau kerugian dari                                  measured at fair value through profit
                    investasi reksa dana yang selanjutnya                          or loss and is not part of a hedging
                    diukur pada nilai wajar melalui laporan                        relationship is recognised in profit or
                    laba rugi dan bukan merupakan                                  loss and presented net in the
                    bagian dari hubungan lindung nilai,                            statement of profit or loss within other
                    diakui dalam laporan laba rugi dan                             gains/(losses) in the period in which it
                    disajikan bersih dalam laporan laba                            arises.
                    rugi di dalam keuntungan/(kerugian)
                    lainnya         dalam           periode
                    kemunculannya.
Page 199
                                               PT AVIA AVIAN Tbk
                                      DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                Lampiran 5/15 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                          NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                               FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                               31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                        (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                        unless otherwise stated)


2.   INFORMASI KEBIJAKAN             AKUNTANSI       YANG      2.   MATERIAL       ACCOUNTING                       POLICY
     MATERIAL (lanjutan)                                            INFORMATION (continued)

     g.   Instrumen keuangan (lanjutan)                             g.   Financial instruments (continued)

          (i)   Aset keuangan (lanjutan)                                 (i)   Financial assets (continued)

                Penghentian pengakuan                                          Derecognition

                Aset keuangan dihentikan pengakuannya                          A financial asset is derecognised when:
                ketika:
                •    hak untuk menerima arus kas dari aset                     •   the rights to receive cash flows from the
                     telah kedaluwarsa; atau                                       asset have expired; or
                •    grup telah mengalihkan haknya untuk                       •   the Group has transferred its rights to
                     menerima arus kas dari aset atau                              receive cash flows from the asset or
                     telah mengasumsikan kewajiban untuk                           has assumed an obligation to pay the
                     membayar arus kas yang diterima                               received cash flows in full without
                     secara penuh tanpa penundaan                                  material delay to a third party under a
                     material    kepada     pihak     ketiga                       ‘pass-through’ arrangement; and either
                     berdasarkan      pengaturan      ‘pass-                       (a) the Group has transferred
                     through’; dan salah satu (a) Grup telah                       substantially all the risks and rewards of
                     mengalihkan      secara     substansial                       the asset, or (b) the Group has neither
                     semua risiko dan manfaat aset, atau                           transferred nor retained substantially all
                     (b) Grup tidak mengalihkan atau                               the risks and rewards of the asset, but
                     memiliki secara substansial seluruh                           has transferred control of the asset.
                     risiko dan manfaat aset, tetapi telah
                     mengalihkan pengendalian aset.

                Penurunan nilai                                                Impairment

                Grup menilai berdasarkan basis forward                         The Group assesses on a forward-looking
                looking untuk mengukur kerugian kredit                         basis, the Expected Credit Losses (“ECL”)
                ekspektasian (“ECL”) terhadap aset                             associated with its financial assets carried at
                keuangan yang diukur pada biaya                                amortised cost and FVOCI. The impairment
                perolehan diamortisasi dan dan nilai wajar                     method applied depends on whether there
                melalui penghasilan komprehensif lain.                         has been a significant increase in credit risk.
                Metode penurunan nilai dilakukan dengan
                mempertimbangkan apakah risiko kredit
                telah meningkat secara signifikan.

                Pada setiap periode pelaporan, Grup                            At each reporting date, the Group assesses
                menilai apakah risiko kredit dari instrumen                    whether the credit risk on a financial
                keuangan       telah    meningkat    secara                    instrument has increased significantly since
                signifikan sejak pengakuan awal. Ketika                        initial recognition. When making the
                melakukan penilaian, Grup menggunakan                          assessment, the Group uses the change in
                perubahan atas risiko gagal bayar yang                         the risk of a default occurring over the
                terjadi sepanjang perkiraan usia instrumen                     expected life of the financial instrument
                keuangan daripada perubahan atas jumlah                        instead of the change in the amount of ECL.
                ECL. Dalam melakukan penilaian, Grup                           To make that assessment, the Group
                membandingkan antara risiko gagal bayar                        compares the risk of a default occurring on
                yang terjadi atas instrumen keuangan pada                      the financial instrument as at the reporting
                saat periode pelaporan dengan risiko gagal                     date with the risk of a default occurring on
                bayar yang terjadi atas instrumen                              the financial instrument as at the date of
                keuangan pada saat pengakuan awal dan                          initial recognition and considers reasonable
                mempertimbangkan         kewajaran     serta                   and supportable information, that is
                ketersediaan informasi yang tersedia pada                      available without undue cost or effort at the
                saat tanggal pelaporan terkait dengan                          reporting date about past events, current
                kejadian masa lalu, kondisi terkini dan                        conditions and forecasts of future economic
                perkiraan atas kondisi ekonomi di masa                         conditions, that is indicative of significant
                depan, yang mengindikasikan kenaikan                           increases in credit risk since initial
                risiko kredit sejak pengakuan awal.                            recognition.
Page 200
                                                PT AVIA AVIAN Tbk
                                       DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                 Lampiran 5/16 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                            NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                                 FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                                 31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                          (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                          unless otherwise stated)


2.   INFORMASI KEBIJAKAN              AKUNTANSI       YANG      2.   MATERIAL       ACCOUNTING                         POLICY
     MATERIAL (lanjutan)                                             INFORMATION (continued)

     g.   Instrumen keuangan (lanjutan)                              g.   Financial instruments (continued)

          (i)   Aset keuangan (lanjutan)                                  (i)   Financial assets (continued)

                Penurunan nilai (lanjutan)                                      Impairment (continued)

                Untuk piutang usaha dan piutang lain-lain                       For trade receivables and other receivables
                tanpa     komponen   pendanaan     yang                         without significant financing components,
                signifikan, Grup menerapkan pendekatan                          the Group applies the simplified approach
                yang disederhanakan yang diizinkan oleh                         permitted by PSAK No. 71, which requires
                PSAK No. 71, yang mensyaratkan                                  expected lifetime losses to be recognised
                ekspektasi kerugian seumur hidup harus                          from the initial recognition of the financial
                diakui sejak pengakuan awal aset                                assets.
                keuangan.

                Grup menganggap aset keuangan gagal                             The Group considers a financial asset in
                bayar ketika pembayaran kontraktual telah                       default when contractual payments are 90
                lewat 90 hari. Namun, dalam kasus                               days past due. However, in certain cases,
                tertentu,      Grup       juga        dapat                     the Group may also consider a financial
                mempertimbangkan       aset       keuangan                      asset to be in default when internal or
                mengalami gagal bayar ketika informasi                          external information indicates that the Group
                internal atau eksternal menunjukkan                             is unlikely to receive the outstanding
                bahwa Grup tidak mungkin menerima                               contractual amounts in full before taking into
                jumlah kontraktual yang terutang secara                         account any credit enhancements held by
                penuh sebelum memperhitungkan setiap                            the Group. A financial asset is written off
                peningkatan kredit yang dimiliki oleh Grup.                     when there is no reasonable expectation of
                Aset keuangan dihapuskan jika tidak ada                         recovering the contractual cash flows.
                ekspektasi yang wajar untuk memulihkan
                arus kas kontraktual.

                Kas dan setara kas dan investasi jangka                         Cash and cash equivalents and short-term
                pendek juga tunduk pada persyaratan                             investments are also subject to impairment
                penurunan nilai PSAK No. 71. ECL                                requirements of PSAK No. 71. The ECL
                didasarkan pada rating kredit bank untuk                        rates are based on the bank’s credit rating
                mengestimasi kemungkinan gagal bayar                            to estimate the probability of default over a
                selama jangka waktu tertentu dan                                given time horizon and utilise the commonly
                menggunakan referensi Basel II yang                             used Basel II reference to estimate the
                digunakan    secara      umum      untuk                        losses arising on default.
                mengestimasi kerugian yang muncul dari
                gagal bayar.

          (ii) Liabilitas keuangan                                        (ii) Financial liabilities

                Liabilitas     keuangan      diklasifikasikan                   Financial liabilities are classified as follows:
                sebagai berikut: liabilitas keuangan yang                       financial liabilities at fair value through profit
                diukur pada nilai wajar melalui laba rugi                       or loss and financial liabilities at amortised
                dan liabilitas keuangan yang diukur pada                        cost.
                biaya perolehan diamortisasi.

                Pada tanggal 31 Desember 2023 dan                               As at 31 December 2023 and 2022, the
                2022, Grup hanya memiliki liabilitas                            Group only had financial liabilities measured
                keuangan yang diukur sebesar biaya                              at amortised cost, which comprise bank
                perolehan diamortisasi, yang terdiri dari                       loans, trade payables, other payables,
                pinjaman bank, utang usaha, utang lain-                         accrued expenses, lease liabilities and
                lain, beban akrual, liabilitas sewa, dan                        customer guarantee.
                uang jaminan pelanggan.
Page 201
                                              PT AVIA AVIAN Tbk
                                     DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                Lampiran 5/17 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                       NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                            FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                            31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                     (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                     unless otherwise stated)


2.   INFORMASI KEBIJAKAN           AKUNTANSI        YANG     2.   MATERIAL       ACCOUNTING                        POLICY
     MATERIAL (lanjutan)                                          INFORMATION (continued)

     g.   Instrumen keuangan (lanjutan)                           g.   Financial instruments (continued)

          (ii) Liabilitas keuangan (lanjutan)                          (ii) Financial liabilities (continued)

              Setelah pengakuan awal, yaitu pada nilai                      After initial recognition which is at fair value
              wajar ditambah biaya transaksi, Grup                          plus transaction costs, the Group measures
              mengukur seluruh liabilitas keuangan pada                     all financial liabilities at amortised cost using
              biaya perolehan diamortisasi dengan                           the EIR method. A financial liability is
              menggunakan metode EIR. Liabilitas                            derecognised when the obligation under the
              keuangan tidak diakui ketika liabilitas                       liability is discharged or cancelled.
              keuangan     telah      dilepaskan    atau
              dibatalkan.

          (iii) Saling hapus instrumen keuangan                        (iii) Offsetting of financial instruments

              Aset keuangan dan liabilitas keuangan                         Financial assets and liabilities are offset and
              disalinghapuskan dan jumlah netonya                           the net amount is reported in the statement
              dilaporkan pada laporan posisi keuangan                       of financial position when there is a legally
              ketika terdapat hak yang berkekuatan                          enforceable right to offset the recognised
              hukum untuk melakukan saling hapus atas                       amounts and there is an intention to settle
              jumlah yang telah diakui tersebut dan                         on a net basis, or realise the asset and
              adanya niat untuk menyelesaikan secara                        settle the liability simultaneously.
              neto, atau untuk merealisasikan aset dan
              menyelesaikan       liabilitas    secara
              bersamaan.

              Hak saling hapus tidak kontinjen atas                        The legally enforceable right must not be
              peristiwa di masa depan dan dapat                            contingent on future events and must be
              dipaksakan secara hukum dalam situasi                        enforceable in the normal course of
              bisnis yang normal dan dalam peristiwa                       business and in the event of default in
              gagal bayar, atau peristiwa kepailitan atau                  solvency or bankruptcy of the Group or the
              kebangkrutan Grup atau pihak lawan.                          counterparty.

     h.   Kas dan setara kas                                      h.   Cash and cash equivalents

          Pada laporan arus kas konsolidasian, kas dan                 In the consolidated statement of cash flows, cash
          setara kas termasuk kas, kas di bank, dan                    and cash equivalents consist of cash on hand,
          deposito berjangka yang jatuh tempo dalam                    cash in banks, and time deposits with original
          jangka waktu tiga bulan atau kurang sejak                    maturity periods of three months or less since
          tanggal perolehan, yang tidak digunakan                      the acquisition date, which are not pledged as
          sebagai     jaminan     atau    tidak   dibatasi             collateral nor restricted for use and bank
          penggunaannya dan cerukan. Setara kas                        overdrafts. Cash equivalents are defined as
          didefinisikan sebagai investasi jangka pendek                short-term, highly liquid investments that are
          dan sangat likuid yang dapat dikonversi ke                   readily convertible into known amounts of cash
          sejumlah kas yang telah diketahui dan tidak                  and which are subject to insignificant risk of
          memiliki risiko perubahan nilai yang signifikan.             changes in value. In the consolidated statement
          Pada laporan posisi keuangan konsolidasian,                  of financial position, bank overdraft is shown
          cerukan disajikan bersama sebagai pinjaman                   within bank loans in current liabilities.
          bank dalam liabilitas jangka pendek.

          Deposito berjangka dengan jangka waktu lebih                 Time deposits with maturity period more than 3
          dari 3 (tiga) bulan sampai 12 (dua belas) bulan              (three) months up to 12 (twelve) months are
          disajikan sebagai investasi jangka pendek                    presented as short-term investments in the
          dalam laporan posisi keuangan konsolidasian.                 consolidated statement of financial position.
Page 202
                                             PT AVIA AVIAN Tbk
                                    DAN ENTITAS ANAK/AND SUBSIDIARIES

                                              Lampiran 5/18 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                        NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                             FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                             31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                      (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                      unless otherwise stated)


2.   INFORMASI KEBIJAKAN           AKUNTANSI       YANG      2.   MATERIAL       ACCOUNTING                     POLICY
     MATERIAL (lanjutan)                                          INFORMATION (continued)

     i.   Piutang usaha dan piutang lain-lain                     i.   Trade and other receivables

          Piutang usaha merupakan jumlah yang                          Trade receivables are amounts due from
          terutang dari pelanggan atas penjualan barang                customers for merchandise sold or services
          dagangan atau jasa dalam kegiatan usaha                      performed in the ordinary course of business.
          normal. Piutang lain-lain merupakan saldo                    Other receivables are receivables arising from
          piutang yang timbul dari transaksi di luar                   transactions outside of the ordinary course of
          kegiatan usaha biasa.                                        business.

          Piutang usaha dan piutang lain-lain pada                     Trade and other receivables are recognised
          awalnya diakui sebesar nilai wajar dan                       initially at fair value and subsequently measured
          selanjutnya diukur pada biaya perolehan yang                 at amortised cost using the EIR method, if the
          diamortisasi dengan menggunakan metode                       impact of discounting is significant, less any
          EIR, apabila dampak pendiskontoan signifikan,                provision for impairment.
          dikurangi provisi atas penurunan nilai.

          Jika piutang diperkirakan dapat ditagih dalam                If collection of the receivables is expected in one
          waktu satu tahun atau kurang (atau dalam                     year or less (or in the normal operating cycle of
          siklus operasi normal jika lebih panjang),                   the business if longer), they are classified as
          piutang diklasifikasikan sebagai aset lancar.                current assets. If not, they are presented as non-
          Jika tidak, piutang disajikan sebagai aset tidak             current assets.
          lancar.

          Grup      menerapkan       pendekatan       yang             The Group applies the PSAK No. 71 simplified
          disederhanakan menurut PSAK No. 71 untuk                     approach to measure ECL which uses a lifetime
          mengukur ECL yang menggunakan kerugian                       ECL for all trade and other receivables. To
          seumur hidup untuk semua piutang usaha dan                   measure the ECL, trade and other receivables
          piutang lain-lain. Untuk mengukur ECL, piutang               have been grouped based on shared credit risk
          usaha dan piutang lain-lain dikelompokkan                    characteristics and the receivables days past
          berdasarkan karakteristik risiko kredit bersama              due.
          dan piutang yang telah lewat jatuh tempo.

          Lihat Catatan 2g untuk penurunan nilai aset                  Refer to Note 2g for impairment of financial
          keuangan, termasuk piutang usaha dan                         assets, including trade and other receivables.
          piutang lain-lain.

          Jumlah kerugian penurunan nilai diakui laba                  The amount of the impairment loss is recognised
          rugi. Ketika piutang usaha yang mana                         in profit or loss. When a trade receivable for
          cadangan penurunan nilai nya telah diakui                    which an impairment allowance had been
          menjadi tidak dapat terkoleksi di periode                    recognised becomes uncollectible in a
          selanjutnya, piutang tersebut dihapus-bukukan                subsequent period, it is written off against the
          terhadap akun pencadangan nya. Pemulihan                     allowance account. Subsequent recoveries of
          kemudian atas jumlah yang sebelumnya                         amounts previously written-off are credited
          dihapus-bukukan dikreditkan terhadap laba                    against profit or loss.
          rugi.

     j.   Persediaan                                              j.   Inventories

          Persediaan dinyatakan sebesar nilai yang lebih               Inventories are stated at the lower of cost or net
          rendah antara biaya perolehan dan nilai                      realisable value.
          realisasi neto.
Page 203
                                             PT AVIA AVIAN Tbk
                                    DAN ENTITAS ANAK/AND SUBSIDIARIES

                                             Lampiran 5/19 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                        NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                             FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                             31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                      (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                      unless otherwise stated)


2.   INFORMASI KEBIJAKAN           AKUNTANSI      YANG        2.   MATERIAL       ACCOUNTING                       POLICY
     MATERIAL (lanjutan)                                           INFORMATION (continued)

     j.   Persediaan (lanjutan)                                    j.   Inventories (continued)

          Harga     perolehan     ditentukan    dengan                  Cost is determined using the weighted average
          menggunakan metode rata-rata tertimbang.                      method. The cost of finished goods and work in
          Harga perolehan barang jadi dan pekerjaan                     progress comprises raw materials, direct labour,
          dalam proses terdiri dari bahan baku, tenaga                  other direct costs and related production
          kerja langsung, biaya langsung lainnya dan                    overheads (based on normal operating
          biaya    overhead    produksi    (berdasarkan                 capacity). It excludes borrowing costs. Net
          kapasitas normal operasi). Persediaan tidak                   realisable value is the estimated selling price in
          mencakup biaya pinjaman. Nilai realisasi neto                 the ordinary course of business less the
          adalah estimasi harga penjualan dalam                         estimated costs of completion and the estimated
          kegiatan usaha biasa, dikurangi estimasi biaya                costs necessary to make the sale.
          penyelesaian dan estimasi biaya yang
          dibutuhkan untuk melakukan penjualan.

          Penyisihan untuk persediaan lambat bergerak                   A provision for slow-moving inventories and
          dan usang dibuat berdasarkan telaah                           obsolescence is made based on management’s
          manajemen setiap akhir tahun.                                 review at the end of the year.

     k.   Aset tetap                                               k.   Fixed assets

          Aset tetap pada awalnya diakui sebesar biaya                  Fixed assets are initially recognised at cost,
          perolehan, yang terdiri atas harga perolehan                  which comprises its purchase price and any
          dan biaya-biaya tambahan yang dapat                           additional costs directly attributable to bringing
          diatribusikan langsung untuk membawa aset                     the asset to its working condition and location for
          ke lokasi dan kondisi yang diinginkan agar aset               its intended use. Such cost also includes the
          siap digunakan sesuai maksud manajemen.                       initial estimation of the costs of dismantling and
          Biaya perolehan tersebut juga termasuk                        removing the fixed assets and restoring the sites
          estimasi awal atas biaya pembongkaran dan                     and the cost of replacing part of such fixed
          pemindahan aset tetap dan pemulihan lokasi                    assets when that cost is incurred, if the
          dan biaya untuk mengganti komponen dari                       recognition criteria are met.
          aset tetap pada saat penggantian, bila kriteria
          pengakuan terpenuhi.

          Setelah pengakuan awal, aset tetap dinyatakan                 Subsequent to initial recognition, fixed assets are
          pada biaya perolehan dikurangi akumulasi                      carried at cost less accumulated depreciation
          penyusutan dan kerugian penurunan nilai, jika                 and impairment losses, if any.
          ada.

          Aset tetap, kecuali tanah, didepresiasi                       Fixed assets, except land, are depreciated using
          menggunakan metode garis lurus berdasarkan                    the straight-line method over their expected
          estimasi masa manfaat aset tetap dengan                       economic useful lives at the following years:
          tahun sebagai berikut:

                                                      Tahun/Years

          Bangunan dan prasarana                            20 - 30                          Buildings and improvements
          Mesin dan peralatan                               4 - 16                             Machinery and equipment
          Instalasi listrik                                 8 - 20                                  Electricity installations
          Kendaraan                                         4 - 10                                                  Vehicles
          Peralatan kantor                                  4 - 10                                       Office equipment

          Tanah termasuk biaya pengurusan legal hak                     Land, including the legal cost of land rights in the
          atas tanah dalam bentuk Hak Guna Usaha                        form of “Hak Guna Usaha” or “HGU” and “Hak
          (“HGU”) dan Hak Guna Bangunan (“HGB”)                         Guna Bangunan” or “HGB” when the land rights
          ketika tanah diperoleh pertama kali dinyatakan                were acquired initially, is stated at cost and not
          sebesar biaya perolehan dan tidak diamortisasi                amortised as the management is of the opinion
          karena manajemen berpendapat bahwa                            that it is probable the titles of land rights can be
          kemungkinan besar hak atas tanah tersebut                     renewed/extended upon expiration.
          dapat diperbaharui/diperpanjang pada saat
          masa berlakunya selesai.
Page 204
                                              PT AVIA AVIAN Tbk
                                     DAN ENTITAS ANAK/AND SUBSIDIARIES

                                               Lampiran 5/20 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                        NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                             FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                             31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                      (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                      unless otherwise stated)


2.   INFORMASI KEBIJAKAN            AKUNTANSI       YANG      2.   MATERIAL       ACCOUNTING                       POLICY
     MATERIAL (lanjutan)                                           INFORMATION (continued)

     k.   Aset tetap (lanjutan)                                    k.   Fixed assets (continued)

          Biaya pengurusan atas perpanjangan atau                       The extension or the legal renewal costs of land
          pembaruan legal hak atas tanah dalam bentuk                   rights in the form of HGU and HGB are deferred
          HGU dan HGB ditangguhkan dan diamortisasi                     and amortised over the shorter between the land
          yang lebih pendek antara umur hukum hak                       rights’ legal life and the economic life of the land.
          atas tanah dan umur ekonomi tanah.

          Tanah dicatat pada nilai revaluasian. Revaluasi               Land is stated at its revalued amount.
          dilakukan dengan keteraturan yang cukup                       Revaluations are performed with sufficient
          berkala untuk memastikan bahwa jumlah yang                    regularity such that the carrying amount is not
          tercatat tidak berbeda secara material dari                   materially different from that which would be
          jumlah yang ditentukan dengan menggunakan                     determined using fair values at the consolidated
          nilai wajar pada tanggal laporan posisi                       statement of financial position.
          keuangan konsolidasian.

          Surplus revaluasi aset tetap yang termasuk                    The revaluation surplus included in equity is
          dalam ekuitas dipindahkan ke dalam saldo laba                 transferred    to   retained   earnings      upon
          pada saat penghentian/pelepasan aset oleh                     termination/disposal of assets by the entity.
          entitas. Pemindahan surplus revaluasi ke saldo                Transfer of revaluation surplus to retained
          laba tidak dilakukan melalui laba rugi.                       earnings is not made through profit or loss.

          Nilai tercatat atas aset tetap diestimasi apabila             The carrying amount of fixed assets is estimated
          terdapat peristiwa atau perubahan keadaan                     whenever events or changes in circumstances
          yang memberikan indikasi bahwa nilai                          indicate that its carrying amount may not be fully
          perolehan mungkin tidak sepenuhnya dapat                      recoverable.
          diperoleh kembali.

          Jumlah tercatat aset tetap dihentikan                         An item of fixed assets is derecognised upon
          pengakuannya pada saat dilepaskan atau saat                   disposal or when no future economic benefits
          tidak ada manfaat ekonomis masa depan yang                    are expected from its use or disposal. Any gain
          diharapkan     dari    penggunaan       atau                  or loss arising on the derecognition of the asset
          pelepasannya. Laba atau rugi yang timbul dari                 (calculated as the difference between the net
          penghentian pengakuan aset (dihitung sebagai                  disposal proceeds and the carrying amount of
          perbedaan antara jumlah neto hasil pelepasan                  the asset) is included in profit or loss in the year
          dan jumlah tercatat dari aset) dimasukkan                     the asset is derecognised.
          dalam laba rugi pada tahun aset tersebut
          dihentikan pengakuannya.

          Pada setiap akhir tahun buku, nilai residu,                   The asset’s residual values, useful lives and
          masa manfaat dan metode penyusutan direviu,                   methods of depreciation are reviewed and
          dan jika sesuai dengan keadaan, disesuaikan                   adjusted prospectively, if appropriate, at each
          secara prospektif.                                            financial year end.

          Aset dalam penyelesaian dinyatakan sebesar                    Construction in progress is stated at cost. The
          harga perolehan. Akumulasi biaya perolehan                    accumulated cost will be transferred to the
          akan dipindahkan ke masing-masing akun aset                   appropriate fixed asset account when the
          tetap pada saat aset tetap tersebut telah                     construction is completed and the asset is ready
          selesai dikerjakan dan siap untuk digunakan                   for its intended use.
          sesuai tujuannya.

          Beban       pemeliharaan    dan        perbaikan              Repairs and maintenance expenses are
          dibebankan pada laba rugi pada saat                           expensed to profit or loss as incurred. The cost
          terjadinya.    Beban      pemugaran          dan              of major renovation and restoration is included in
          penambahan dalam jumlah besar dikapitalisasi                  the carrying amount of the related fixed asset
          kepada nilai tercatat aset tetap terkait bila                 when it is probable that future economic benefits
          besar kemungkinan bagi Grup manfaat                           in excess of the originally assessed standard of
          ekonomi masa depan menjadi lebih besar dari                   performance of the existing asset will flow to the
          standar kinerja      awal yang ditetapkan                     Group and is depreciated over the remaining
          sebelumnya dan disusutkan sepanjang sisa                      useful life of the related asset, if any.
          masa manfaat aset tetap terkait, jika ada.
Page 205
                                              PT AVIA AVIAN Tbk
                                     DAN ENTITAS ANAK/AND SUBSIDIARIES

                                              Lampiran 5/21 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                       NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                            FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                            31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                     (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                     unless otherwise stated)


2.   INFORMASI KEBIJAKAN           AKUNTANSI       YANG      2.   MATERIAL       ACCOUNTING                     POLICY
     MATERIAL (lanjutan)                                          INFORMATION (continued)

     l.   Sewa                                                    l.   Leases

          Penentuan     apakah       suatu      perjanjian             The determination of whether an arrangement
          merupakan, atau mengandung, sewa dibuat                      is, or contains, a lease is made based on the
          berdasarkan substansi perjanjian itu sendiri dan             substance of the arrangement and assessment
          penilaian apakah pemenuhan atas perjanjian                   of whether fulfillment of the arrangement is
          bergantung dari penggunaan aset tertentu atau                dependent on the use of a specific asset or
          aset, dan apakah perjanjian memberikan hak                   assets, and the arrangement conveys a right to
          untuk menggunakan aset.                                      use the asset.

          Sebagai Penyewa                                              As Lessee

          Grup menerapkan satu pendekatan pengakuan                    The Group applies a single recognition and
          dan pengukuran untuk semua sewa, kecuali                     measurement approach for all leases, except for
          untuk sewa jangka pendek dan sewa aset                       short-term leases and leases of low-value
          bernilai-rendah. Grup mengakui liabilitas sewa               assets. The Group recognises lease liabilities to
          untuk melakukan pembayaran sewa dan aset                     make lease payments and right-of-use assets
          hak guna yang merupakan hak untuk                            representing the right to use the underlying
          menggunakan aset pendasar.                                   assets.

          Aset hak-guna                                                Right-of-use assets

          Aset hak-guna diukur pada biaya perolehan,                   The right-of-use asset is initially measured at
          dimana meliputi jumlah pengukuran awal                       cost, which comprises the initial amount of the
          liabilitas sewa yang disesuaikan dengan                      lease liability adjusted for any lease payment
          pembayaran sewa yang dilakukan pada atau                     made at or before the commencement date, plus
          sebelum tanggal permulaan, ditambah dengan                   any initial direct cost incurred and an estimate of
          biaya langsung awal yang dikeluarkan dan                     costs to dismantle and remove the underlying
          estimasi biaya yang akan dikeluarkan untuk                   asset or to restore the underlying asset to the
          membongkar dan memindahkan aset pendasar                     condition required by the terms and conditions of
          atau untuk merestorasi aset pendasar ke                      the lease, less any lease incentives received.
          kondisi yang disyaratkan dan ketentuan sewa,
          dikurangi dengan insentif sewa yang diterima.

          Aset    hak-guna     kemudian      disusutkan                The right-of-use asset is subsequently
          menggunakan metode garis lurus dari tanggal                  depreciated using the straight-line method from
          permulaan hingga tanggal yang lebih awal                     the commencement date to the earlier of the end
          antara akhir umur manfaat aset hak-guna atau                 of the useful life of the right-of-use asset or the
          akhir masa sewa. Jika Grup cukup yakin untuk                 end of the lease term. If the Group is reasonably
          melaksanakan opsi pembelian, aset hak-guna                   certain to exercise a purchase option, the right-
          disusutkan selama masa manfaat aset yang                     of-use asset is depreciated over the underlying
          mendasarinya. Selain itu, aset hak-guna juga                 asset’s useful life. In addition, the right-of-use
          dikurangkan dengan kerugian penurunan nilai,                 asset is reduced by impairment losses, if any,
          apabila   ada,    dan    disesuaikan    untuk                and adjusted for certain remeasurements of the
          pengukuran kembali tertentu atas liabilitas                  lease liability.
          sewa.
Page 206
                                              PT AVIA AVIAN Tbk
                                     DAN ENTITAS ANAK/AND SUBSIDIARIES

                                              Lampiran 5/22 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                        NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                             FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                             31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                      (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                      unless otherwise stated)


2.   INFORMASI KEBIJAKAN           AKUNTANSI       YANG      2.   MATERIAL       ACCOUNTING                      POLICY
     MATERIAL (lanjutan)                                          INFORMATION (continued)

     l.   Sewa (lanjutan)                                         l.   Leases (continued)

          Sebagai Penyewa (lanjutan)                                   As Lessee (continued)

          Liabilitas sewa                                              Lease liabilities

          Liabilitas sewa diukur pada nilai kini                       The lease liability is initially measured at the
          pembayaran sewa yang belum dibayar pada                      present value of the lease payments that are not
          tanggal permulaan, didiskontokan dengan                      paid at the commencement date, discounted
          menggunakan suku bunga implisit dalam sewa                   using the interest rate implicit in the lease or, if
          atau jika suku bunga tersebut tidak dapat                    that rate cannot be readily determined, using the
          ditentukan, maka menggunakan suku bunga                      incremental borrowing rate. Generally, the Group
          pinjaman inkremental. Pada umumnya, Grup                     uses its incremental borrowing rate as the
          menggunakan      suku       bunga    pinjaman                discount rate.
          inkremental sebagai tingkat bunga diskonto.

          Pembayaran sewa yang termasuk dalam                          Lease payments included in the measurement of
          pengukuran       liabilitas     sewa    meliputi             the lease liability comprise fixed payments,
          pembayaran tetap, termasuk pembayaran                        including in-substance fixed payments less any
          tetap secara substansi dikurangi dengan                      lease incentive receivable. Lease payments to
          piutang insentif sewa. Pembayaran sewa yang                  be made under reasonably certain extension
          harus      dilakukan        berdasarkan    opsi              options are also included in the measurement of
          perpanjangan tertentu juga termasuk dalam                    the liability.
          pengukuran liabilitas.

          Setiap pembayaran sewa dialokasikan antara                   Each lease payment is allocated between the
          liabilitas dan beban keuangan. Utang sewa                    liability and the finance cost. The corresponding
          yang terkait, dikurangi dengan beban                         rental obligations, net of finance cost, are
          keuangan, dimasukkan ke dalam “Liabilitas                    included in “Lease liabilities”. The finance cost is
          sewa”. Elemen bunga dari beban keuangan                      charged to profit or loss over the lease period so
          dibebankan pada laba rugi selama periode                     as to produce a constant periodic rate of interest
          sewa sehingga menghasilkan tingkat bunga                     on the remaining balance of the liability for each
          periodik yang konstan untuk saldo liabilitas                 period.
          yang tersisa pada setiap periode.

          Modifikasi sewa                                              Lease modification

          Grup mencatat modifikasi sewa sebagai sewa                   The Group accounts for a lease modification as
          terpisah jika kedua kondisi berikut terpenuhi:               a separate lease if both condition met:
          -    modifikasi meningkatkan ruang lingkup                   -   the modification increases the scope of the
               sewa dengan menambahkan hak untuk                           lease by adding the right to use one or more
               menggunakan satu atau lebih aset yang                       underlying assets; and
               mendasarinya; dan
          -    pembayaran sewa meningkat sebesar                       -    the consideration for the lease increases by
               jumlah yang setara dengan harga yang                         an amount commensurate with the stand-
               berdiri sendiri untuk peningkatan ruang                      alone price for the increase in scope and
               lingkup dan setiap penyesuaian yang tepat                    any appropriate adjustments to that stand-
               atas harga yang berdiri sendiri tersebut                     alone price to reflect the circumstances of
               untuk mencerminkan keadaan kontrak                           the particular contract.
               tertentu.
Page 207
                                                PT AVIA AVIAN Tbk
                                       DAN ENTITAS ANAK/AND SUBSIDIARIES

                                             Lampiran 5/23 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                    NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                         FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                         31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                  (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                  unless otherwise stated)


2.   INFORMASI KEBIJAKAN           AKUNTANSI     YANG     2.   MATERIAL       ACCOUNTING                      POLICY
     MATERIAL (lanjutan)                                       INFORMATION (continued)

     l.   Sewa (lanjutan)                                      l.   Leases (continued)

          Sebagai Penyewa (lanjutan)                                As Lessee (continued)

          Modifikasi sewa (lanjutan)                                Lease modification (continued)

          Untuk modifikasi sewa yang tidak dicatat                  For a lease modification that is not accounted for
          sebagai sewa terpisah, pada tanggal efektif               as a separate lease, at the effective date of the
          modifikasi sewa, Grup:                                    lease modification, the Group:
          -   mengukur kembali dan mengalokasikan                   -   remeasures and allocate the consideration
              pembayaran       dalam    kontrak   yang                  in the modified contract.
              dimodifikasi.
          -   menentukan masa sewa dari sewa yang                   -   determines the lease term of the modified
              dimodifikasi.                                             lease.
          -   mengukur kembali liabilitas sewa dengan               -   remeasures      the    lease     liability by
              mendiskontokan pembayaran sewa yang                       discounting the revised lease payments
              direvisi menggunakan tingkat diskonto                     using a revised discount rate on the basis of
              yang direvisi berdasarkan sisa masa sewa                  the remaining lease term and the remaining
              dan sisa pembayaran sewa dengan                           lease payment with a corresponding
              penyesuaian yang sesuai dengan aset                       adjustment to the right-of-use assets. The
              hak-guna. Tingkat diskonto yang direvisi                  revised discount rate is determined as the
              ditentukan sebagai suku bunga pinjaman                    Group’s incremental borrowing rate at the
              inkremental Grup pada tanggal efektif                     effective date of the modification.
              modifikasi.
          -   menurunkan nilai tercatat aset hak-guna               -   decreases the carrying amount of the right-
              untuk       mencerminkan      penghentian                 of-use asset to reflect the partial or full
              sebagian atau seluruh sewa untuk                          termination of the lease for lease
              modifikasi sewa yang mengurangi ruang                     modifications that decrease the scope of
              lingkup sewa. Grup mengakui dalam                         the lease. The Group recognises in profit or
              laporan laba rugi setiap keuntungan atau                  loss any gain or loss relating to the partial or
              kerugian      yang    berkaitan   dengan                  full termination of the lease, and
              penghentian sebagian atau seluruh sewa,
              dan
          -   membuat penyesuaian yang sesuai                       -   makes a corresponding adjustment to the
              dengan aset hak-guna untuk semua                          right-of-use asset for all other lease
              modifikasi sewa lainnya.                                  modifications.

          Sewa jangka pendek dan sewa aset bernilai                 Short-term leases and leases of low-value
          rendah                                                    assets

          Grup memilih untuk tidak mengakui aset hak-               The Group elected not to recognise right-of-use
          guna dan liabilitas sewa untuk sewa jangka                assets and lease liabilities for short-term leases
          pendek yang memiliki masa sewa 12 bulan                   which have a lease term of 12 months or less
          atau kurang sejak tanggal permulaan dan tidak             from the commencement date and do not
          mengandung opsi pembelian dan aset bernilai-              contain a purchase option and low-value assets.
          rendah. Pembayaran sewa untuk sewa jangka                 Lease payments on short-term leases and
          pendek dan sewa atas aset bernilai rendah                 leases of low-value assets are recognised as
          diakui sebagai beban dengan metode garis                  expense on a straight-line basis over the lease
          lurus selama masa sewa.                                   term.
Page 208
                                             PT AVIA AVIAN Tbk
                                    DAN ENTITAS ANAK/AND SUBSIDIARIES

                                             Lampiran 5/24 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                      NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                           FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                           31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                    (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                    unless otherwise stated)


2.   INFORMASI KEBIJAKAN           AKUNTANSI      YANG      2.   MATERIAL       ACCOUNTING                      POLICY
     MATERIAL (lanjutan)                                         INFORMATION (continued)

     l.   Sewa (lanjutan)                                        l.   Leases (continued)

          Sebagai Pesewa                                              As Lessor

          Pada sewa di mana Grup tidak mengalihkan                    Leases in which the Group does not transfer
          secara substansial semua risiko dan manfaat                 substantially all the risks and rewards of
          kepemilikan suatu aset diklasifikasikan sebagai             ownership of an asset are classified as operating
          sewa operasi. Biaya langsung awal yang                      leases. Initial direct costs incurred in negotiating
          dikeluarkan untuk melakukan negosiasi dan                   and arranging an operating lease are added to
          pengaturan sewa operasi ditambahkan ke nilai                the carrying amount of the leased asset and
          tercatat dari aset sewaan dan diakui selama                 recognised over the lease term on the same
          masa sewa dengan dasar yang sama dengan                     basis as rental income. Contingent rents are
          pendapatan sewa. Sewa kontinjen diakui                      recognised as revenue in the period in which
          sebagai pendapatan pada periode perolehan.                  they are earned.

     m. Properti investasi                                       m. Investment properties

          Properti yang dimiliki untuk disewakan dalam                Property that is held for long-term rental yield or
          jangka panjang atau untuk kenaikan harga                    for capital appreciation or both, and that is not
          atau keduanya, dan yang tidak ditempati oleh                occupied by the entities within the Group, is
          entitas-entitas dalam Grup, diklasifikasikan                classified as investment property. Investment
          sebagai properti investasi. Properti investasi              property also includes property that is being
          juga mencakup properti yang sedang                          constructed or developed for future use as an
          dikonstruksi    atau    dikembangkan    untuk               investment property.
          digunakan sebagai properti investasi di masa
          depan.

          Properti investasi awalnya diukur berdasarkan               Investment property is measured initially at its
          biayanya, termasuk biaya transaksi yang                     cost, including related transaction costs and
          terkait dan biaya pinjaman yang berlaku.                    where applicable borrowing costs.

          Setelah pengakuan awal, properti investasi                  After initial recognition, investment property is
          dicatat sebesar nilai wajarnya. Properti                    carried at fair value. Investment property that is
          investasi yang sedang dalam pengembangan                    being redeveloped for continuing use as an
          ulang untuk penggunaan lebih lanjut sebagai                 investment property or for which the market has
          properti investasi atau ketika pasar menjadi                become less active continues to be measured at
          kurang aktif tetap dicatat sebesar nilai                    fair    value.    Investment     property   under
          wajarnya. Properti investasi dalam konstruksi               construction is measured at fair value if the fair
          diukur menggunakan nilai wajar jika nilai wajar             value is considered to be reliably determinable.
          dianggap dapat diukur secara andal. Properti                Investment properties under construction for
          investasi dalam konstruksi yang nilai wajarnya              which the fair value cannot be determined
          tidak dapat diukur secara andal, tetapi                     reliably, but for which the Company expects that
          Perusahaan mengharapkan nilai wajarnya                      the fair value of the property will be reliably
          dapat diukur secara andal ketika konstruksi                 determinable when construction is completed,
          selesai, diukur senilai biaya dikurangi                     are measured at cost less impairment until the
          penurunan nilai sampai nilai wajarnya dapat                 fair value becomes reliably determinable or
          diukur    secara    andal    atau    konstruksi             construction is completed – whichever is earlier.
          diselesaikan – yang mana yang lebih awal.
Page 209
                                               PT AVIA AVIAN Tbk
                                      DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                 Lampiran 5/25 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                      NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                           FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                           31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                    (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                    unless otherwise stated)


2.   INFORMASI KEBIJAKAN            AKUNTANSI        YANG    2.   MATERIAL       ACCOUNTING                     POLICY
     MATERIAL (lanjutan)                                          INFORMATION (continued)

     m. Properti investasi (lanjutan)                             m. Investment properties (continued)

         Properti investasi Grup terdiri dari:                        Investment properties of the Group consist of the
                                                                      following:

         (i)   Tanah                                                  (i)   Land

               Merupakan tanah yang belum ditentukan                        Represents land that its intended use has
               tujuan penggunaannya dan tidak untuk                         not been determined yet and is not for use
               digunakan      dalam     produksi   atau                     in the production or supply of goods or
               penyediaan barang atau jasa untuk tujuan                     services or for administrative purposes or
               administratif atau dijual dalam kegiatan                     sale in the ordinary course of business.
               usaha sehari-hari.

         (ii) Bangunan                                                (ii) Building

               Merupakan gedung perkantoran           yang                  Represents office buildings rented to other
               disewakan kepada pihak lain.                                 parties.

         Nilai wajar didasarkan kepada harga pasar                    Fair value is based on active market prices,
         aktif,   disesuaikan,    jika   perlu,    dengan             adjusted, if necessary, for differences in the
         perbedaan alam, lokasi atau kondisi dari aset                nature, location or condition of the specific asset.
         tersebut. Jika informasi tersebut tidak tersedia,            If this information is not available, the Group
         Grup      menggunakan        metode     penilaian            uses alternative valuation methods, such as
         alternatif, seperti harga terbaru di pasar yang              recent prices on less active markets or
         kurang aktif atau proyeksi arus kas yang                     discounted cash flow projections. Valuations are
         didiskontokan. Penilaian dilakukan pada                      performed as of the financial position date by
         tanggal neraca oleh penilai ahli dengan                      professional valuers who hold recognised and
         kualifikasi yang diakui dan relevan dan memiliki             relevant professional qualifications and have
         pengalaman terbaru atas lokasi dan kategori                  recent experience in the location and category of
         dari properti investasi dinilai. Penilaian ini               the investment property being valued. These
         membentuk dasar untuk nilai tercatat pada                    valuations form the basis for the carrying
         laporan keuangan konsolidasian. Perubahan                    amounts      in   the    consolidated      financial
         nilai wajar diakui di laba rugi sebagai bagian               statements. Changes in the fair value are
         dari “Penghasilan/(beban) lain-lain, neto”.                  recognised in profit or loss as part of “Other
                                                                      income/(expenses), net”.

         Properti investasi dihentikan pengakuannya                   Investment properties are derecognised either
         baik saat dilepas atau ketika tidak digunakan                when they have been disposed of or when they
         lagi secara permanen dan tidak memiliki                      are permanently withdrawn from use and no
         manfaat ekonomis masa depan yang                             future economic benefit is expected from their
         diharapkan dari pelepasannya. Selisih antara                 disposal. The difference between the net
         hasil neto pelepasan dan nilai tercatat aset                 disposal proceeds and the carrying amount of
         diakui dalam laba rugi pada periode terjadinya               the asset is recognised in profit or loss in the
         penghentian pengakuan.                                       period of derecognition.

         Pengalihan dilakukan ke (atau dari) properti                 Transfers are made to (or from) investment
         investasi hanya jika terdapat perubahan                      property only when there is a change in use. For
         penggunaan. Untuk pengalihan dari properti                   a transfer from investment property to owner-
         investasi ke properti yang digunakan sendiri,                occupied property, the deemed cost for
         biaya yang dianggap untuk akuntansi                          subsequent accounting is the fair value at the
         selanjutnya adalah nilai wajar pada tanggal                  date of change in use. If an owner-occupied
         perubahan penggunaan. Jika properti yang                     property becomes an investment property, the
         digunakan sendiri menjadi properti investasi,                Group accounts for such property in accordance
         Grup memperhitungkan properti tersebut                       with the policy stated under fixed assets up to
         sesuai dengan kebijakan yang tercantum                       the date of change in use.
         dalam aset tetap sampai dengan tanggal
         perubahan yang digunakan.
Page 210
                                               PT AVIA AVIAN Tbk
                                      DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                Lampiran 5/26 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                          NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                               FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                               31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                        (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                        unless otherwise stated)


2.   INFORMASI KEBIJAKAN             AKUNTANSI        YANG      2.   MATERIAL       ACCOUNTING                     POLICY
     MATERIAL (lanjutan)                                             INFORMATION (continued)

     n.   Aset takberwujud                                           n.   Intangible assets

          Biaya yang terkait dengan pemeliharaan                          Costs associated with maintaining computer
          program piranti lunak komputer diakui sebagai                   software programs are recognised as an
          beban      pada    saat    terjadinya.  Biaya                   expense as incurred. Development costs that
          pengembangan yang dapat secara langsung                         are directly attributable to the design and testing
          diatribusikan kepada desain dan pengujian                       of identifiable and unique software products
          produk piranti lunak yang dapat diidentifikasi                  controlled by the Group are recognised as
          dan unik yang dikendalikan oleh Grup diakui                     intangible      assets.     Computer      software
          sebagai       aset     takberwujud.     Biaya                   development costs recognised as assets are
          pengembangan piranti lunak komputer diakui                      amortised over their estimated useful lives.
          sebagai aset yang diamortisasi selama
          estimasi masa manfaat.

     o.   Penurunan nilai aset non-keuangan                          o.   Impairment of non-financial assets

          Aset yang memiliki masa manfaat yang tidak                      Assets that have an indefinite useful life – for
          terbatas – misalnya goodwill atau aset                          example, goodwill or intangible assets not ready
          takberwujud yang tidak siap untuk digunakan -                   for use – are not subject to amortisation but
          tidak diamortisasi namun diuji penurunan                        tested annually for impairment, or more
          nilainya setiap tahun, atau lebih sering apabila                frequently if events or changes in circumstances
          terdapat peristiwa atau perubahan pada kondisi                  indicate that they might be impaired. Assets that
          yang       mengindikasikan         kemungkinan                  are not subject to amortisation are reviewed for
          penurunan nilai. Aset yang tidak diamortisasi                   impairment whenever events or changes in
          diuji ketika terdapat indikasi bahwa nilai                      circumstances indicate that the carrying amount
          tercatatnya mungkin tidak dapat dipulihkan.                     may not be recoverable. An impairment loss is
          Penurunan nilai diakui jika nilai tercatat aset                 recognised for the amount by which the asset’s
          melebihi jumlah terpulihkan.                                    carrying amount exceeds its recoverable
                                                                          amount.

          Jumlah terpulihkan adalah yang lebih tinggi                     The recoverable amount is the higher of an
          antara nilai wajar aset dikurangi biaya untuk                   asset’s fair value less costs of disposal and
          menjual dan nilai pakai aset. Dalam                             value in use. For the purposes of assessing
          menentukan        penurunan       nilai,     aset               impairment, assets are grouped at the lowest
          dikelompokkan pada tingkat yang paling                          levels for which there are separately identifiable
          rendah dimana terdapat arus kas masuk yang                      cash inflows, which are largely independent of
          dapat diidentifikasi, yang sebagian besar tidak                 the cash inflows from other assets or group of
          tergantung pada arus masuk kas dari aset lain                   assets (cash generating units). Non-financial
          atau kelompok aset (unit penghasil kas). Aset                   assets other than goodwill that suffer impairment
          non-keuangan selain goodwill yang mengalami                     are reviewed for possible reversal of the
          penurunan nilai diuji setiap tanggal pelaporan                  impairment at each reporting date.
          untuk     menentukan        apakah       terdapat
          kemungkinan pemulihan penurunan nilai.

          Pemulihan rugi penurunan nilai, untuk aset                      Reversal on impairment loss for assets other
          selain goodwill, diakui jika, dan hanya jika,                   than goodwill would be recognised if, and only if,
          terdapat perubahan estimasi yang digunakan                      there has been a change in the estimates used
          dalam menentukan jumlah terpulihkan aset                        to determine the asset’s recoverable amount
          sejak pengujian penurunan nilai terakhir kali.                  since the last impairment test was carried out.
          Pembalikan rugi penurunan nilai tersebut diakui                 The reversal on impairment losses will be
          segera dalam laba rugi, kecuali aset yang                       immediately recognised on profit or loss, except
          disajikan pada jumlah revaluasian sesuai                        for assets measured using the revaluation model
          dengan PSAK lain. Pembalikan tersebut tidak                     as required by other PSAK. The reversal should
          boleh mengakibatkan nilai tercatat aset                         not result in the carrying amount of an asset
          melebihi biaya perolehan disusutkan sebelum                     exceeding what the depreciated cost would have
          adanya pengakuan penurunan nilai pada                           been had the impairment not been recognised at
          tanggal pembalikan dilakukan. Rugi penurunan                    the date on which the impairment was reversed.
          nilai yang diakui atas goodwill tidak dibalik lagi.             Impairment losses relating to goodwill would not
                                                                          be reversed.
Page 211
                                              PT AVIA AVIAN Tbk
                                     DAN ENTITAS ANAK/AND SUBSIDIARIES

                                               Lampiran 5/27 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                        NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                             FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                             31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                      (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                      unless otherwise stated)


2.   INFORMASI KEBIJAKAN             AKUNTANSI      YANG      2.   MATERIAL       ACCOUNTING                     POLICY
     MATERIAL (lanjutan)                                           INFORMATION (continued)

     p.   Utang usaha dan utang lain-lain                          p.   Trade and other payables

          Utang usaha adalah kewajiban membayar                         Trade payables are obligations to pay for goods
          barang atau jasa yang telah diterima dalam                    or services that have been acquired in the
          kegiatan usaha biasa dari pemasok. Utang                      ordinary course of business from suppliers.
          lain-lain merupakan saldo utang yang timbul                   Other payables are payables arising from
          dari transaksi di luar kegiatan usaha biasa.                  transactions outside of the ordinary course of
                                                                        business.

          Utang usaha dan utang lain-lain diklasifikasikan              Trade and other payables are classified as
          sebagai    liabilitas jangka     pendek      jika             current liabilities if payment is due within one
          pembayarannya jatuh tempo dalam waktu satu                    year or less (or in the normal operating cycle of
          tahun atau kurang (atau dalam siklus operasi                  the business if longer). If not, they are presented
          normal jika lebih panjang). Jika tidak, utang                 as non-current liabilities.
          tersebut disajikan sebagai liabilitas jangka
          panjang.

          Utang usaha dan utang lain-lain pada awalnya                  Trade and other payables are recognised initially
          diakui sebesar nilai wajar dan selanjutnya                    at fair value and subsequently measured at
          diukur pada biaya perolehan yang diamortisasi                 amortised cost using the EIR method.
          dengan menggunakan metode EIR.

     q.   Liabilitas imbalan kerja                                 q.   Employee benefits liability

          Liabilitas imbalan kerja jangka pendek                        Short-term employee benefits liability

          Imbalan kerja jangka pendek diakui pada saat                  Short-term employee benefits are recognised
          terutang kepada karyawan.                                     when they are accrued to the employees.

          Liabilitas imbalan pascakerja                                 Post-employment benefits liability

          Grup mengakui imbalan pascakerja manfaat                      The Group recognises defined post-employment
          pasti untuk karyawan berdasarkan Peraturan                    benefits to their employees in accordance with
          Ketenagakerjaan terakhir yang berlaku dan                     the latest applicable Manpower Regulations and
          PSAK No. 24, “Imbalan Kerja”. Liabilitas                      PSAK No. 24, “Employee Benefits”. The
          imbalan kerja diukur berdasarkan laporan                      employee benefits liability is estimated on the
          aktuaris.                                                     basis of actuarial reports.

          Kewajiban imbalan kerja adalah nilai kini dari                The pension benefits obligation is the present
          kewajiban imbalan pasti pada saat akhir                       value of the defined benefit obligation at the
          periode pelaporan dikurangi dengan nilai wajar                end of the reporting period less the fair value of
          aset program. Kewajiban imbalan pasti dihitung                plan assets. The defined benefit obligation is
          setiap tahun oleh aktuaris independen dengan                  calculated annually by an independent actuary
          menggunakan metode projected unit credit.                     using the projected unit credit method.

          Nilai kini kewajiban imbalan pasti ditentukan                 The present value of the defined benefit
          dengan mendiskontokan arus kas keluar yang                    obligation is determined by discounting the
          diestimasi dengan menggunakan tingkat bunga                   estimated future cash outflows using interest
          obligasi pemerintah (dikarenakan saat ini tidak               rates at the reporting date of government
          ada pasar aktif untuk obligasi perusahaan                     bonds (considering that currently there is no
          berkualitas tinggi) pada tanggal pelaporan yang               deep market for high-quality corporate bonds)
          didenominasikan dalam mata uang Rupiah,                       that are denominated in Rupiah, in which the
          dimana imbalan tersebut akan dibayarkan dan                   benefits will be paid and that have terms to
          memiliki waktu jatuh tempo mendekati jangka                   maturity similar to the related pension
          waktu kewajiban pensiun.                                      obligation.
Page 212
                                              PT AVIA AVIAN Tbk
                                     DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                Lampiran 5/28 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                        NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                             FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                             31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                      (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                      unless otherwise stated)


2.   INFORMASI KEBIJAKAN            AKUNTANSI       YANG      2.   MATERIAL       ACCOUNTING                      POLICY
     MATERIAL (lanjutan)                                           INFORMATION (continued)

     q.   Liabilitas imbalan kerja (lanjutan)                      q.   Employee benefits liability (continued)

          Pengukuran kembali yang timbul dari                           Remeasurements arising from experience
          penyesuaian pengalaman dan perubahan                          adjustments and changes in actuarial
          asumsi-asumsi aktuari langsung diakui pada                    assumptions are directly recognised in other
          penghasilan komprehensif lain. Akumulasi                      comprehensive      income.      Accumulated
          pengukuran diakui di penghasilan komprehensif                 remeasurements are recognised in other
          lain.                                                         comprehensive income.

          Biaya jasa lalu yang timbul dari amendemen                    Past service costs arising from amendment or
          program atau kurtailmen diakui pada laba rugi                 curtailment programmes are recognised in
          pada saat terjadinya.                                         profit or loss as incurred.

     r.   Akrual dan provisi                                       r.   Accruals and provisions

          Akrual dan provisi diakui jika Grup memiliki                  Accruals and provisions are recognised when
          liabilitas kini (baik bersifat hukum maupun                   the Group has a present obligation (legal or
          bersifat konstruktif) yang akibat peristiwa masa              constructive) where, as a result of a past event,
          lalu, besar kemungkinannya penyelesaian                       it is probable that an outflow of resources
          liabilitas tersebut mengakibatkan arus keluar                 embodying economic benefits will be required to
          sumber daya yang mengandung manfaat                           settle the obligation and a reliable estimate can
          ekonomi dan estimasi yang andal mengenai                      be made of the amount of the obligation.
          jumlah kewajiban tersebut dapat dibuat. Akrual                Accruals and provisions are not recognised for
          dan provisi tidak diakui untuk kerugian operasi               future operating losses.
          di masa mendatang.

          Akrual dan provisi diukur sebesar nilai kini dari             Accruals and provisions are measured at the
          estimasi terbaik manajemen atas pengeluaran                   present value of management’s best estimate of
          yang     diperlukan    untuk   menyelesaikan                  the expenditure required to settle the present
          kewajiban kini pada akhir periode pelaporan.                  obligation at the end of the reporting period. The
          Tingkat diskonto yang digunakan untuk                         discount rate used to determine the present
          menentukan nilai kini adalah tingkat diskonto                 value is a pretax rate that reflects current market
          sebelum pajak yang mencerminkan penilaian                     assessments of the time value of money and the
          pasar atas nilai waktu uang dan risiko yang                   risks specific to the liability. The increase in the
          terkait dengan kewajiban. Peningkatan provisi                 provision due to the passage of time is
          karena berjalannya waktu diakui sebagai                       recognised as interest expense.
          beban bunga.

          Akrual dan provisi direviu pada setiap tanggal                Accruals and provisions are reviewed at each
          pelaporan       dan     disesuaikan       untuk               reporting date and adjusted to reflect the current
          mencerminkan estimasi kini terbaik. Jika tidak                best estimate. If it is no longer probable that an
          terdapat kemungkinan arus kas keluar sumber                   outflow of resources embodying economic
          daya yang mengandung manfaat ekonomi                          benefits will be required to settle the obligation,
          untuk menyelesaikan liabilitas tersebut, provisi              the provision is reversed.
          tersebut dibalik.

     s.   Pinjaman                                                 s.   Borrowings

          Pinjaman diakui pada awalnya sebesar nilai                    Borrowings are recognised initially at fair value,
          wajar, dikurangi dengan biaya transaksi yang                  net of transaction costs incurred. Borrowings
          terjadi. Pinjaman kemudian dicatat sebesar                    are subsequently carried at amortised cost;
          biaya perolehan yang diamortisasi; selisih                    any difference between the proceeds (net of
          antara hasil perolehan (dikurangi dengan biaya                transaction costs) and the redemption value is
          transaksi) dan nilai penarikan diakui dalam laba              recognised in profit or loss over the period of
          rugi selama periode pinjaman dengan                           the borrowing, using the EIR method.
          menggunakan metode EIR.
Page 213
                                               PT AVIA AVIAN Tbk
                                      DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                Lampiran 5/29 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                           NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                                FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                                31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                         (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                         unless otherwise stated)


2.   INFORMASI KEBIJAKAN             AKUNTANSI        YANG      2.   MATERIAL       ACCOUNTING                      POLICY
     MATERIAL (lanjutan)                                             INFORMATION (continued)

     s.   Pinjaman (lanjutan)                                        s.   Borrowings (continued)

          Biaya yang dibayarkan untuk pembukaan                           Fees paid on the establishment of loan
          fasilitas pinjaman diakui sebagai biaya                         facilities are recognised as transaction costs of
          transaksi     pinjaman    sepanjang      besar                  the loan to the extent that it is probable that
          kemungkinan sebagian atau seluruh fasilitas                     some or all of the facility will be drawn down. In
          akan ditarik. Dalam hal ini, biaya tersebut                     this case, the fee is deferred until the draw-
          ditangguhkan sampai penarikan terjadi. Sejauh                   down occurs. To the extent that there is no
          tidak ada bukti bahwa ada kemungkinan                           evidence that it is probable that some or all of
          sebagian atau seluruh fasilitas akan ditarik,                   the facility will be drawn down, the fee is
          biaya     tersebut    dikapitalisasi   sebagai                  capitalised as a pre-payment for liquidity
          pembayaran di muka untuk layanan likuiditas                     services and amortised over the period of the
          dan diamortisasi selama periode fasilitas yang                  facility to which it relates.
          terkait.

          Pinjaman diklasifikasikan sebagai liabilitas                    Borrowings are classified as current liabilities
          jangka pendek kecuali Grup memiliki hak tanpa                   unless the Group has an unconditional right to
          syarat untuk menunda pembayaran liabilitas                      defer the settlement of the liability for at least
          selama paling tidak 12 bulan setelah tanggal                    12 months after the reporting date.
          pelaporan.

     t.   Pengakuan pendapatan dan beban                             t.   Revenue and expense recognition

          Pendapatan dari kontrak dengan pelanggan                        Revenue from contracts with customers is
          diakui pada saat pengendalian barang                            recognised when control of the goods are
          dialihkan kepada pelanggan dalam jumlah                         transferred to the customer at an amount that
          yang mencerminkan imbalan yang diharapkan                       reflects the consideration to which the Group
          akan menjadi hak Grup dalam pertukaran                          expects to be entitled in exchange for those
          barang    tersebut. Grup   secara   umum                        goods. The Group has generally concluded that
          menyimpulkan bahwa Grup adalah prinsipal                        it is the principal in its revenue arrangements.
          dalam pengaturan pendapatannya.

          Grup menerapkan PSAK No. 72, “Pendapatan                        The Group has adopted PSAK No. 72, “Revenue
          dari Kontrak dengan Pelanggan”, yang                            from Contracts with Customers”, which requires
          mensyaratkan pengakuan pendapatan untuk                         revenue recognition to fulfill 5 (five) steps as
          memenuhi 5 (lima) langkah sebagai berikut:                      follows:

          i)   Identifikasi kontrak dengan pelanggan.                     i)     Identify contracts with a customer.
          ii)  Identifikasi kewajiban pelaksanaan dalam                   ii)    Identify the performance obligations in the
               kontrak.       Kewajiban          pelaksanaan                     contract. Performance obligations are
               merupakan janji-janji dalam kontrak untuk                         promises in a contract to transfer to a
               menyerahkan barang atau jasa yang                                 customer goods or services that are
               memiliki      karakteristik     berbeda    ke                     distinct.
               pelanggan.
          iii) Menetapkan harga transaksi, setelah                        iii)   Determine the transaction price, net of
               dikurangi diskon, retur, insentif penjualan                       discounts, returns, sales incentives and
               dan pajak pertambahan nilai, yang berhak                          value added tax, which an entity expects to
               diperoleh      suatu       entitas     sebagai                    be entitled in exchange for transferring the
               kompensasi atas diserahkannya barang                              promised goods or based on the contracts.
               atau jasa yang dijanjikan di kontrak.
Page 214
                                               PT AVIA AVIAN Tbk
                                      DAN ENTITAS ANAK/AND SUBSIDIARIES

                                               Lampiran 5/30 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                          NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                               FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                               31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                        (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                        unless otherwise stated)


2.   INFORMASI KEBIJAKAN            AKUNTANSI        YANG      2.   MATERIAL       ACCOUNTING                     POLICY
     MATERIAL (lanjutan)                                            INFORMATION (continued)

     t.   Pengakuan pendapatan dan beban (lanjutan)                 t.   Revenue         and    expense       recognition
                                                                         (continued)

          Grup menerapkan PSAK No. 72, “Pendapatan                       The Group has adopted PSAK No. 72, “Revenue
          dari Kontrak dengan Pelanggan”, yang                           from Contracts with Customers”, which requires
          mensyaratkan pengakuan pendapatan untuk                        revenue recognition to fulfill 5 (five) steps as
          memenuhi 5 (lima) langkah sebagai berikut:                     follows: (continued)
          (lanjutan)

          iv) Alokasi harga transaksi ke setiap                          iv) Allocate the transaction price to each
              kewajiban         pelaksanaan        dengan                    performance obligation on the basis of the
              menggunakan dasar harga jual berdiri                           relative stand-alone selling prices of each
              sendiri relatif dari setiap barang atau jasa                   distinct goods or services promised in the
              berbeda yang dijanjikan di kontrak. Ketika                     contract. When these are not directly
              tidak dapat diamati secara langsung,                           observable, the relative stand-alone selling
              harga     jual     berdiri   sendiri   relatif                 price is estimated based on expected cost
              diperkirakan berdasarkan biaya yang                            plus margin.
              diharapkan ditambah margin.
          v) Pengakuan pendapatan ketika kewajiban                       v)   Recognise revenue when a performance
              pelaksanaan telah dipenuhi dengan                               obligation is satisfied by transferring a
              menyerahkan barang atau jasa yang                               promised goods or services to a customer
              dijanjikan ke pelanggan (ketika pelanggan                       (which is when the customer obtains control
              telah memiliki kendali atas barang atau                         of those goods or services).
              jasa tersebut).

          Penjualan barang                                               Sale of goods

          Pendapatan dari penjualan barang diakui pada                   Revenue from sale of goods is recognised at the
          saat pengendalian aset dialihkan kepada                        point in time when control of the asset is
          pelanggan, umumnya pada saat penyerahan                        transferred to the customer, generally on
          barang.                                                        delivery of the goods.

          Grup mempertimbangkan apakah ada janji lain                    The Group considers whether there are other
          dalam kontrak yang merupakan kewajiban                         promises in the contract that are separate
          pelaksanaan terpisah yang perlu dialokasikan                   performance obligations to which a portion of the
          sebagian dari harga transaksi. Dalam                           transaction price needs to be allocated. In
          menentukan harga transaksi untuk penjualan                     determining the transaction price for the sale of
          barang, Grup mempertimbangkan pengaruh                         goods, the Group considers the effects of
          dari imbalan variabel.                                         variable consideration.

          Pendapatan     dari    penjualan   ini  diakui                 Revenue from these sales is recognised based
          berdasarkan harga jual dikurangi diskon,                       on the sales price, net of the discount, estimated
          estimasi insentif penjualan, rabat volume dan                  sales incentives, volume rebates and other
          biaya pemasaran dan promosi lainnya, dan                       marketing and promotion costs and excludes
          tidak termasuk Pajak Pertambahan Nilai                         Value Added Tax (“VAT”).
          (“PPN”).
Page 215
                                              PT AVIA AVIAN Tbk
                                     DAN ENTITAS ANAK/AND SUBSIDIARIES

                                              Lampiran 5/31 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                        NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                             FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                             31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                      (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                      unless otherwise stated)


2.   INFORMASI KEBIJAKAN            AKUNTANSI      YANG      2.   MATERIAL       ACCOUNTING                      POLICY
     MATERIAL (lanjutan)                                          INFORMATION (continued)

     t.   Pengakuan pendapatan dan beban (lanjutan)               t.   Revenue        and      expense       recognition
                                                                       (continued)

          Penjualan barang (lanjutan)                                  Sale of goods (continued)

          (i)   Imbalan variabel                                       (i)   Variable consideration

                Jika imbalan dalam kontrak mencakup                          If the consideration in a contract includes a
                jumlah variabel, Grup mengestimasi                           variable amount, the Group estimates the
                jumlah imbalan yang menjadi haknya                           amount of consideration to which it will be
                sebagai imbalan atas pengalihan barang                       entitled in exchange for transferring the
                kepada pelanggan. Imbalan variabel                           goods to the customer. The variable
                diestimasi pada awal kontrak dan dibatasi                    consideration is estimated at contract
                hingga     kemungkinan    besar   bahwa                      inception and constrained until it is highly
                pembalikan pendapatan yang material                          probable that a material revenue reversal in
                dalam jumlah pendapatan kumulatif yang                       the amount of cumulative revenue
                diakui    tidak  akan     terjadi  ketika                    recognised will not occur when the
                ketidakpastian terkait dengan imbalan                        associated uncertainty with the variable
                variabel kemudian diselesaikan.                              consideration is subsequently resolved.

                Beberapa kontrak untuk penjualan barang                      Some contracts for the sale of goods
                memberi hak retur dan rabat volume                           provide customers with a right of return and
                kepada pelanggan. Hak retur dan rabat                        volume rebates. The rights of return and
                volume menimbulkan imbalan variabel.                         volume rebates give rise to variable
                                                                             consideration.

                •   Hak retur                                                •   Rights of return

                    Kontrak tertentu memberi pelanggan                           Certain contracts provide a customer
                    hak untuk mengembalikan barang                               with the right to return the goods
                    dalam jangka waktu tertentu.                                 within a specified period.

                    Grup menggunakan metode nilai yang                           The Group uses the expected value
                    diharapkan    untuk    mengestimasi                          method to estimate the goods that will
                    barang yang tidak akan dikembalikan                          not be returned because this method
                    karena metode ini paling baik                                best predicts the amount of variable
                    memprediksi jumlah imbalan variabel                          consideration to which the Group will
                    yang menjadi hak Grup. Ketentuan                             be entitled. The requirements in PSAK
                    dalam PSAK No. 72 tentang estimasi                           No. 72 on constraining estimates of
                    batasan atas imbalan variabel juga                           variable consideration are also applied
                    diterapkan untuk menentukan jumlah                           in order to determine the amount of
                    imbalan    variabel   yang     dapat                         variable consideration that can be
                    dimasukkan ke dalam harga transaksi.                         included in the transaction price.

                    Pada setiap akhir periode pelaporan,                         At each reporting period, the Group
                    Grup mengestimasi barang yang                                estimates the goods that are expected
                    diharapkan akan dikembalikan dan                             to be returned and recognises a
                    mengakui provisi retur penjualan                             provision for sales return as a contract
                    sebagai liabilitas kontrak beserta hak                       liability and the right of return asset
                    retur aset (untuk penyesuaian beban                          (for the corresponding cost of goods
                    pokok penjualan atas provisi retur                           sold of the provision for sales return)
                    penjualan tersebut) sebagai aset                             as a contract asset.
                    kontrak.
Page 216
                                               PT AVIA AVIAN Tbk
                                      DAN ENTITAS ANAK/AND SUBSIDIARIES

                                               Lampiran 5/32 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                         NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                              FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                              31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                       (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                       unless otherwise stated)


2.   INFORMASI KEBIJAKAN             AKUNTANSI      YANG      2.   MATERIAL       ACCOUNTING                       POLICY
     MATERIAL (lanjutan)                                           INFORMATION (continued)

     t.   Pengakuan pendapatan dan beban (lanjutan)                t.   Revenue        and      expense       recognition
                                                                        (continued)

          Penjualan barang (lanjutan)                                   Sale of goods (continued)

          (i)   Imbalan variabel (lanjutan)                             (i)   Variable consideration (continued)

                •   Rabat volume                                              •   Volume rebate

                    Kontrak tertentu dengan pelanggan                             Certain contracts customers provide
                    memberikan        rabat     volume                            volume rebate based on the sales
                    berdasarkan pencapaian penjualan                              achievement    during      the    rebate
                    selama periode program rabat. Grup                            programme period. The Group has
                    mengakui liabilitas kontrak terkait                           recognised contract liability related to
                    dengan rabat volume ini sebagai                               this volume rebate as part of accrual
                    bagian dari beban akrual pemasaran                            marketing and promotion in the
                    dan promosi pada laporan posisi                               consolidated statement of financial
                    keuangan konsolidasian.                                       position.

          Program loyalitas pelanggan                                   Customer loyalty programme

          Grup memiliki program poin loyalitas yang                     The Group has a loyalty points programme that
          memungkinkan pelanggan mengumpulkan poin                      allows customers to accumulate points that can
          yang dapat ditukarkan dengan barang gratis.                   be redeemed for free goods. The loyalty points
          Poin      loyalitas   menimbulkan      kewajiban              give rise to a separate performance obligation as
          pelaksanaan terpisah karena memberikan hak                    they provide a material right to the customer. A
          material kepada pelanggan. Sebagian dari                      portion of the transaction price is allocated to the
          harga transaksi dialokasikan ke poin loyalitas                loyalty points awarded to customers based on
          yang diberikan kepada pelanggan berdasarkan                   relative stand-alone selling price and recognised
          harga jual berdiri sendiri dan diakui sebagai                 as a contract liability until the points are
          liabilitas kontrak sampai poin tersebut                       redeemed. The contract liability is presented as
          ditukarkan. Liabilitas kontrak tersebut disajikan             part of “Accrued expenses” in the consolidated
          sebagai bagian dari “Beban akrual” dalam                      statements of financial position. Revenue is
          laporan      posisi  keuangan      konsolidasian.             recognised upon redemption of products by the
          Pendapatan diakui pada saat penukaran                         customer.
          produk oleh pelanggan.

          Ketika pihak lain terlibat dalam penyediaan                   When another party is involved in providing
          barang gratis kepada pelanggannya, Grup                       promotional free goods to its customer, the
          menentukan apakah ia adalah prinsipal atau                    Group determines whether it is a principal or an
          agen dalam transaksi ini dengan mengevaluasi                  agent in these transactions by evaluating the
          sifat dari janjinya kepada pelanggan. Grup                    nature of its promise to the customer. The Group
          sepenuhnya       bertanggung   jawab     untuk                is primarily responsible for fulfilling the promise
          memenuhi janji atas pemberian barang gratis                   to provide free goods to eligible customers. The
          kepada pelanggan yang memenuhi syarat.                        Group determined that they control the free
          Grup menetapkan bahwa Grup mengendalikan                      goods before they are transferred to customers
          barang gratis sebelum ditransfer ke pelanggan                 and have the ability to direct the use of the free
          dan memiliki kemampuan untuk mengarahkan                      goods. Therefore, the Group concluded that it is
          penggunaan barang gratis tersebut. Oleh                       the principal in this arrangement. Upon
          karena itu, Grup menyimpulkan bahwa Grup                      redemption of loyalty points by the customer, the
          adalah prinsipal dalam pengaturan ini. Pada                   Group records the cost of promotional free
          saat penukaran poin loyalitas oleh pelanggan,                 goods as part of the cost of goods sold in the
          Grup mencatat biaya barang gratis sebagai                     statement of profit or loss and other
          bagian dari harga pokok penjualan dalam                       comprehensive income.
          laporan    laba      rugi  dan    penghasilan
          komprehensif lain.
Page 217
                                               PT AVIA AVIAN Tbk
                                      DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                Lampiran 5/33 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                           NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                                FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                                31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                         (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                         unless otherwise stated)


2.   INFORMASI KEBIJAKAN             AKUNTANSI        YANG      2.   MATERIAL       ACCOUNTING                      POLICY
     MATERIAL (lanjutan)                                             INFORMATION (continued)

     t.   Pengakuan pendapatan dan beban (lanjutan)                  t.   Revenue        and      expense       recognition
                                                                          (continued)

          Biaya dan beban diakui dalam laba rugi dalam                    Cost and expenses are recognised in profit or
          periode saat terjadinya menggunakan dasar                       loss in the period when incurred on an accrual
          akrual.                                                         basis.

     u.   Perpajakan                                                 u.   Taxation

          Beban pajak terdiri dari pajak kini dan pajak                   The tax expense comprises current and
          tangguhan. Pajak diakui dalam laporan laba                      deferred tax. Tax is recognised in the profit or
          rugi, kecuali jika pajak tersebut terkait dengan                loss, except to the extent that it relates to items
          transaksi atau kejadian yang diakui di                          recognised in other comprehensive income or
          penghasilan komprehensif lain atau langsung                     directly in equity. In this case, the tax is also
          diakui ke ekuitas. Dalam hal ini, pajak tersebut                recognised in other comprehensive income or
          masing-masing diakui dalam penghasilan                          directly in equity, respectively.
          komprehensif lain atau ekuitas.

          Beban pajak kini dihitung berdasarkan                           The current income tax charge is calculated on
          peraturan perpajakan yang berlaku atau yang                     the basis of the tax laws enacted or
          secara substantif berlaku pada akhir periode                    substantively enacted at the end of the
          pelaporan, di negara dimana perusahaan dan                      reporting period, in the countries where the
          entitas anak beroperasi dan menghasilkan                        Company and its subsidiaries operate and
          pendapatan kena pajak. Manajemen secara                         generate     taxable    income.     Management
          periodik mengevaluasi posisi yang dilaporkan di                 periodically evaluates positions taken in Annual
          Surat    Pemberitahuan      (“SPT”)   Tahunan                   Tax Returns (“SPT”) with respect to situations
          sehubungan dengan situasi di mana aturan                        in which applicable tax regulation is subject to
          pajak yang berlaku membutuhkan interpretasi.                    interpretation. If necessary, it establishes
          Jika perlu, manajemen menentukan provisi                        provisions where appropriate on the basis of
          berdasarkan jumlah yang diharapkan akan                         amounts expected to be paid to the tax
          dibayar kepada otoritas pajak.                                  authorities.

          Pajak      penghasilan      tangguhan       diakui              Deferred income tax is provided in full, using
          sepenuhnya, dengan menggunakan metode                           the liability method, on temporary differences
          liabilitas untuk semua perbedaan temporer                       which arise from the difference between the tax
          yang berasal dari selisih antara dasar                          bases of assets and liabilities and their carrying
          pengenaan pajak aset dan liabilitas dengan nilai                amounts in the consolidated financial
          tercatatnya     pada      laporan        keuangan               statements. However, deferred tax liabilities are
          konsolidasian.     Namun,      liabilitas    pajak              not recognised if they arise from the initial
          penghasilan tangguhan tidak diakui jika berasal                 recognition of goodwill. Deferred income tax is
          dari     pengakuan     awal    goodwill.     Pajak              also not accounted for if it arises from the initial
          penghasilan      tangguhan         juga       tidak             recognition of an asset or liability in a
          diperhitungkan     jika    pajak       penghasilan              transaction other than a business combination
          tangguhan tersebut timbul dari pengakuan awal                   that at the time of the transaction affects
          aset atau pengakuan awal liabilitas dalam                       neither accounting nor taxable profit or loss.
          transaksi yang bukan kombinasi bisnis yang
          pada saat transaksi tidak memengaruhi laba
          akuntansi maupun laba kena pajak/rugi pajak.

          Pajak penghasilan tangguhan diukur dengan                       Deferred income tax is determined using tax
          menggunakan      tarif pajak yang sudah                         rates (and laws) that have been enacted or
          diberlakukan atau secara substantif berlaku                     substantially enacted by the end of the
          pada akhir periode pelaporan dan diekspektasi                   reporting period and are expected to apply
          akan digunakan ketika aset pajak tangguhan                      when the related deferred income tax asset is
          yang berhubungan direalisasi atau liabilitas                    realised or the deferred income tax liability is
          pajak tangguhan diselesaikan.                                   settled.
Page 218
                                              PT AVIA AVIAN Tbk
                                     DAN ENTITAS ANAK/AND SUBSIDIARIES

                                              Lampiran 5/34 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                       NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                            FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                            31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                     (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                     unless otherwise stated)


2.   INFORMASI KEBIJAKAN           AKUNTANSI       YANG      2.   MATERIAL       ACCOUNTING                     POLICY
     MATERIAL (lanjutan)                                          INFORMATION (continued)

     u.   Perpajakan (lanjutan)                                   u.   Taxation (continued)

          Aset pajak tangguhan diakui hanya jika                       Deferred tax assets are recognised only if it is
          kemungkinan jumlah penghasilan kena pajak di                 probable that future taxable amounts will be
          masa    depan      akan    memadai    untuk                  available to utilise those temporary differences
          dikompensasi dengan perbedaan temporer                       and losses.
          yang masih dapat dimanfaatkan.

          Aset dan liabilitas pajak penghasilan tangguhan              Deferred tax assets and liabilities are offset
          dapat saling hapus apabila terdapat hak yang                 when there is a legally enforceable right to
          berkekuatan hukum untuk melakukan saling                     offset current tax assets and liabilities and
          hapus antara aset pajak kini dengan liabilitas               when the deferred tax balances relate to the
          pajak kini dan apabila aset dan liabilitas pajak             same taxation authority. Current tax assets and
          penghasilan tangguhan dikenakan oleh otoritas                tax liabilities are offset where the entity has a
          perpajakan yang sama. Aset pajak kini dan                    legally enforceable right to offset and intends
          liabilitas pajak kini akan saling hapus ketika               either to settle on a net basis, or to realise the
          entitas memiliki hak yang berkekuatan hukum                  asset and settle the liability simultaneously.
          untuk melakukan saling hapus dan adanya niat
          untuk melakukan penyelesaian saldo-saldo
          tersebut secara neto atau untuk merealisasikan
          dan menyelesaikan liabilitas secara bersamaan.

     v.   Modal saham                                             v.   Share capital

          Saham biasa diklasifikasikan sebagai ekuitas.                Ordinary shares are classified as equity.
          Biaya tambahan yang secara langsung dapat                    Incremental costs directly attributable to the
          diatribusikan kepada penerbitan saham biasa                  issue of new ordinary shares or options are
          atau opsi disajikan pada ekuitas sebagai                     shown in equity as a deduction, net of tax, from
          pengurang penerimaan, setelah dikurangi                      the proceeds.
          pajak.

          Biaya yang terjadi sehubungan dengan                         Costs incurred in connection with the Company’s
          penerbitan modal saham Perusahaan kepada                     issuance of share capital to the public were
          publik    dikurangkan    langsung   dengan                   offset directly with the proceeds and presented
          penerimaan dan disajikan sebagai pengurang                   as a deduction to the additional paid-in capital
          akun tambahan modal disetor dalam laporan                    account in the consolidated statements of
          posisi keuangan konsolidasian.                               financial position.

          Ketika entitas Grup membeli modal saham                      Where any Group entity purchases the
          ekuitas Perusahaan (saham treasuri), imbalan                 Company’s equity share capital (treasury
          yang dibayar, termasuk biaya tambahan yang                   shares), the consideration paid, including any
          secara langsung dapat diatribusikan (dikurangi               directly attributable incremental costs (net of
          pajak penghasilan) dikurangkan dari ekuitas                  income taxes) is deducted from equity
          yang diatribusikan kepada pemilik ekuitas                    attributable to the Company’s equity holders until
          Perusahaan sampai saham tersebut dibatalkan                  the shares are cancelled or reissued. Where
          atau diterbitkan kembali. Ketika saham biasa                 such ordinary shares are subsequently reissued,
          tersebut selanjutnya diterbitkan kembali,                    any consideration received, net of any directly
          imbalan yang diterima, dikurangi biaya                       attributable incremental transaction costs and
          tambahan transaksi yang terkait dan dampak                   the related income tax effects, is included in
          pajak penghasilan yang terkait dimasukkan                    equity attributable to the Company’s equity
          pada ekuitas yang dapat diatribusikan kepada                 holders.
          pemilik ekuitas Perusahaan.
Page 219
                                            PT AVIA AVIAN Tbk
                                   DAN ENTITAS ANAK/AND SUBSIDIARIES

                                            Lampiran 5/35 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                    NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                         FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                         31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                  (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                  unless otherwise stated)


2.   INFORMASI KEBIJAKAN          AKUNTANSI      YANG     2.   MATERIAL       ACCOUNTING                     POLICY
     MATERIAL (lanjutan)                                       INFORMATION (continued)

     w. Distribusi dividen                                     w. Dividend distribution

          Distribusi dividen kepada pemilik Perusahaan              Dividend distribution to the Company’s
          diakui sebagai liabilitas dalam laporan                   shareholders is recognised as a liability in the
          keuangan konsolidasian Grup pada periode                  Group’s consolidated financial statements in the
          dimana dividen telah disetujui oleh pemegang              period in which the dividends are approved by
          saham entitas dalam Rapat Umum Pemegang                   the    Company’s      General      Meeting     of
          Saham Perusahaan (“RUPS”).                                Shareholders.

     x.   Laba per saham                                       x.   Earnings per share

          Laba per saham dasar dihitung dengan                      Basic earnings per share are calculated by
          membagi laba bersih yang tersedia bagi                    dividing the profit attributable to the equity
          pemegang saham Perusahaan dengan jumlah                   holders of the Company by the weighted
          rata-rata tertimbang saham biasa yang beredar             average number of ordinary shares outstanding
          pada periode berjalan.                                    during the period.

          Apabila jumlah saham biasa yang beredar                   If the number of ordinary shares outstanding is
          meningkat tanpa disertai peningkatan sumber               increased without an increase in resources, the
          daya, maka jumlah saham biasa yang beredar                number of ordinary shares outstanding before
          sebelum peristiwa tersebut disesuaikan                    the event is adjusted for the proportionate
          dengan perubahan proporsional atas jumlah                 change in the number of ordinary shares
          saham beredar seolah-olah peristiwa tersebut              outstanding as if the event had occurred at the
          terjadi pada permulaan dari periode sajian                beginning of the earliest period presented.
          paling awal.

     y.   Pelaporan segmen                                     y.   Segment reporting

          Segmen operasi dilaporkan dengan cara yang                Operating segments are reported in a manner
          konsisten dengan pelaporan internal yang                  consistent with the internal reporting provided to
          diberikan kepada pengambil keputusan operasi              the chief operating decision-maker. The chief
          utama. Pengambil keputusan operasi utama,                 operating decision-maker, who is responsible for
          yang bertanggung jawab mengalokasikan                     allocating resources and assessing the
          sumber daya dan menilai kinerja segmen                    performance of the operating segments, has
          operasi, telah diidentifikasi sebagai komite              been identified as the steering committee that
          pengarah     yang   mengambil      keputusan              makes strategic decisions.
          strategis.

          Untuk tujuan manajemen, Grup dibagi menjadi               For management purposes, the Group is
          dua segmen operasi berdasarkan produk yang                organised into two operating segments based
          dikelola secara independen oleh masing-                   on their products which are independently
          masing pengelola segmen yang bertanggung                  managed by the respective segment managers
          jawab atas kinerja dari masing-masing                     responsible for the performance of the
          segmen. Para pengelola segmen melaporkan                  respective segments under their charge. The
          secara langsung kepada manajemen Grup                     segment managers report directly to the Group’s
          yang secara teratur mengkaji laba segmen                  management who regularly review the
          sebagai dasar untuk mengalokasikan sumber                 segment’s results in order to allocate resources
          daya ke masing-masing segmen dan untuk                    to the segments and assess the segment’s
          menilai kinerja segmen. Pengungkapan                      performance. Additional disclosures on each of
          tambahan pada masing-masing segmen                        these segments are shown in Note 34, including
          terdapat dalam Catatan 34, termasuk faktor                the factors used to identify the reportable
          yang    digunakan    untuk   mengidentifikasi             segments and the measurement basis of
          segmen     yang   dilaporkan   dan    dasar               segment information.
          pengukuran informasi segmen.
Page 220
                                             PT AVIA AVIAN Tbk
                                    DAN ENTITAS ANAK/AND SUBSIDIARIES

                                              Lampiran 5/36 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                      NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                           FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                           31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                    (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                    unless otherwise stated)


3.   ESTIMASI DAN PERTIMBANGAN AKUNTANSI                     3.   CRITICAL ACCOUNTING             ESTIMATES       AND
     YANG PENTING                                                 JUDGEMENTS

     Penyusunan laporan keuangan konsolidasian Grup               The preparation of the Group’s consolidated financial
     mengharuskan        manajemen     untuk    membuat           statements requires management to make
     pertimbangan,      estimasi   dan    asumsi    yang          judgements, estimates and assumptions that affect
     memengaruhi jumlah yang dilaporkan dari                      the reported amounts of revenues, expenses, assets
     pendapatan, beban, aset dan liabilitas, dan                  and liabilities, and the disclosure of contingent
     pengungkapan atas liabilitas kontinjensi, pada akhir         liabilities, at the end of the reporting period.
     periode pelaporan. Estimasi, asumsi, dan                     Estimates, assumptions and judgements are
     pertimbangan tersebut dievaluasi secara terus                continuously evaluated based on historical
     menerus berdasarkan pengalaman historis dan                  experience and other factors, including expectations
     faktor-faktor lainnya, termasuk harapan peristiwa di         of future events that are believed to be reasonable
     masa datang yang diyakini wajar berdasarkan                  under the circumstances.
     kondisi yang ada.

     Grup telah mengidentifikasi hal-hal berikut dimana           The Group has identified the following matters under
     diperlukan pertimbangan, estimasi dan asumsi                 which significant judgements, estimates and
     signifikan dan dimana hasil aktual dapat berbeda             assumptions are made and where actual results may
     dari estimasi tersebut jika menggunakan asumsi               differ from these estimates under different
     dan kondisi yang berbeda dan dapat memengaruhi               assumptions and conditions and may materially
     secara material hasil keuangan atau posisi                   affect the consolidated financial results or financial
     keuangan konsolidasian Grup yang dilaporkan                  position of the Group reported in future years.
     dalam tahun mendatang.

     Nilai wajar aset tetap (tanah) dan investasi properti        Fair value fixed assets (land) and investment
     (tanah dan bangunan)                                         properties (land and buildings)

     Nilai wajar dari aset tetap (tanah) dan properti             The fair value of fixed assets (land) and investment
     investasi (tanah dan bangunan) ditentukan                    properties (land and buildings) is determined by
     menggunakan teknik valuasi. Aset tetap (tanah) dan           using valuation techniques. The Group’s fixed
     properti investasi (tanah dan bangunan) milik Grup           assets (land) and investment properties (land and
     divaluasi oleh penilai independen profesional yang           buildings)    were      valued     by   independent
     memiliki kualifikasi yang relevan dan pengalaman             professionally qualified valuers who hold a
     yang berhubungan dengan lokasi dan segmen aset               recognised relevant professional qualification and
     tetap (tanah) dan properti investasi (tanah dan              have recent experience in the locations and
     bangunan) yang akan dinilai. Untuk semua                     segment of the fixed assets (land) and investment
     penilaian, penggunaan saat ini setara dengan                 properties (land and buildings) valued. For all
     penggunaan tertinggi dan terbaik.                            valuations, their current use equates to the highest
                                                                  and best use.

     Nilai wajar untuk tanah yang dimiliki dalam aset             The fair value for land held in fixed assets and
     tetap    dan     properti   investasi   ditentukan           investment properties was determined using the
     menggunakan pendekatan pasar. Pendekatan ini                 market approach. This approach takes into account
     mempertimbangkan nilai pasar tanah untuk properti            the market price of land for comparable properties
     pembanding di sekitar lokasi, dengan penyesuaian-            in the vicinity, with certain adjustments for
     penyesuaian tertentu yang dilakukan dengan                   differences due to different characteristics of the
     mempertimbangkan perbedaan karakteristik dari                land, such as land certificate status, property size,
     tanah tersebut, seperti status sertifikasi tanah,            location and accessibility. The most significant input
     ukuran properti, lokasi, akses menuju lokasi. Hal            into this valuation approach is the land market price
     yang paling signifikan dalam pendekatan ini adalah           per square metre.
     harga pasar tanah per meter persegi.

     Nilai wajar untuk bangunan yang dimiliki dalam               The fair value for building held in investment
     properti   investasi    ditentukan    menggunakan            properties was determined using the income
     pendekatan pendapatan dengan model arus kas                  approach with the discounted cash flow model. The
     diskontoan. Asumsi signifikan dalam pendekatan ini           significant assumption under this approach are
     adalah tingkat tarif sewa dan biaya jasa dan tingkat         rental and service charge rates and the discount
     diskonto.                                                    rate.
Page 221
                                            PT AVIA AVIAN Tbk
                                   DAN ENTITAS ANAK/AND SUBSIDIARIES

                                           Lampiran 5/37 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                   NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                        FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                        31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                 (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                 unless otherwise stated)


3.   ESTIMASI DAN PERTIMBANGAN AKUNTANSI                  3.   CRITICAL ACCOUNTING              ESTIMATES       AND
     YANG PENTING (lanjutan)                                   JUDGEMENTS (continued)

     Beban akrual pemasaran dan promosi                        Accrued marketing and promotion expenses

     Grup mengevaluasi kelayakan beban akrual                  The Group evaluates the appropriateness of
     promosi dan pemasaran pada setiap akhir periode           accrued marketing and promotion expenses at
     pelaporan.                                                every end of reporting period.

     Grup membuat pertimbangan yang signifikan untuk           The Group exercised significant assumptions and
     mengestimasi jumlah beban akrual pemasaran dan            judgements to estimate the accrued marketing and
     promosi pada akhir tahun. Asumsi-asumsi utama             promotion expenses amounts at the end of the
     dalam penentuan beban akrual pemasaran dan                year. The key assumptions in determining the
     promosi adalah harga barang promosi dan estimasi          accrued marketing and promotion expenses were
     pencapaian penjualan. Ketidakpastian muncul               the promotional goods’ price and estimated sales
     sehubungan dengan harga barang promosi dan                achievement. Uncertainties exist with respect to the
     jumlah aktual pencapaian penjualan, yang mungkin          promotional goods’ price and the actual sales
     berbeda dengan estimasi. Setiap perubahan dari            achievement, which may be different from the
     faktor-faktor ini akan berdampak pada jumlah              estimation. Any changes in these factors will impact
     realisasi yang dapat berbeda dari beban akrual            the realisable amount which can be different from
     pemasaran dan promosi.                                    the reported accrued marketing and promotion
                                                               expenses.

     Penyusutan aset tetap                                     Depreciation of fixed assets

     Aset tetap disusutkan dengan menggunakan                  The fixed assets are depreciated on a straight-line
     metode garis lurus berdasarkan taksiran masa              method over their estimated useful lives.
     manfaat ekonomisnya. Manajemen mengestimasi               Management estimates the useful lives of these
     masa manfaat ekonomis aset tetap antara 4 sampai          fixed assets to be within 4 to 30 years.
     dengan 30 tahun.

     Grup secara periodik menelaah estimasi masa               The Group periodically reviews the estimated
     manfaat aset tetap berdasarkan beberapa faktor            useful lives of fixed assets based on several
     diantaranya spesifikasi teknis, operasi dan               factors such as technical specification, operation
     kebutuhan usaha. Laporan keuangan konsolidasian           and business needs. The consolidated financial
     dapat terpengaruh secara material terhadap                statements could be materially affected by changes
     perubahan dalam estimasi tersebut. Manajemen              in these estimates. Management will revise the
     akan merevisi beban penyusutan dimana masa                depreciation charged where useful lives are
     manfaatnya berbeda dari estimasi sebelumnya,              different to those previously estimated, or it will
     atau penghapusan atau melakukan penurunan nilai           write off or written down technically obsolete or
     atas aset yang secara teknis telah usang atau aset        non-strategic assets that have been abandoned or
     non-strategis yang dihentikan penggunaannya atau          sold. Further details are disclosed in Note 11.
     dijual. Penjelasan lebih rinci diungkapkan dalam
     Catatan 11.

     Sewa                                                      Leases

     Penentuan apakah suatu perjanjian merupakan atau          Determining whether an arrangement is or contains
     mengandung sewa memerlukan pertimbangan yang              a lease requires careful judgement to assess
     cermat untuk menilai apakah perjanjian tersebut           whether the arrangement conveys a right to obtain
     memberikan hak untuk memperoleh secara                    substantially all the economic benefits from the use
     substansial seluruh   manfaat ekonomi dari                of the asset throughout the period of use and the
     penggunaan aset selama periode penggunaan dan             right to direct the use of the asset, even if the right
     hak untuk mengarahkan penggunaan aset, bahkan             is not explicitly specified in the arrangement.
     jika hak tidak secara eksplisit ditentukan dalam
     pengaturan.
Page 222
                                             PT AVIA AVIAN Tbk
                                    DAN ENTITAS ANAK/AND SUBSIDIARIES

                                              Lampiran 5/38 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                       NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                            FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                            31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                     (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                     unless otherwise stated)


3.   ESTIMASI DAN PERTIMBANGAN AKUNTANSI                     3.   CRITICAL ACCOUNTING               ESTIMATES        AND
     YANG PENTING (lanjutan)                                      JUDGEMENTS (continued)

     Sewa (lanjutan)                                              Leases (continued)

     Grup memiliki berbagai perjanjian sewa dimana                The Group has various lease agreements where the
     Grup bertindak sebagai lessee sehubungan dengan              Group acts as a lessee in respect of certain assets.
     aset tertentu. Grup mengevaluasi apakah risiko dan           The Group evaluates whether significant risks and
     manfaat yang signifikan atas kepemilikan aset                rewards of ownership of the leased asset are
     sewaan      dialihkan  kepada     penyewa     atau           transferred to the lessee or retained by the Group
     dipertahankan oleh Grup berdasarkan PSAK No. 73,             based on PSAK No. 73, which requires the Group to
     yang mengharuskan Grup untuk membuat                         make judgements and estimates of the transfer of
     pertimbangan dan estimasi atas pengalihan risiko             risks and rewards of ownership of the leased asset.
     dan manfaat kepemilikan aset yang disewa.

     Karena Grup tidak dapat dengan mudah                         Since the Group could not readily determine the
     menentukan suku bunga implisit, manajemen                    implicit rate, management uses the Group’s
     menggunakan suku bunga pinjaman inkremental                  incremental borrowing rate as a discount rate.
     Grup sebagai tingkat diskonto. Ada beberapa faktor           There are a number of factors to consider in
     yang perlu dipertimbangkan dalam menentukan                  determining an incremental borrowing rate, many of
     suku bunga pinjaman inkremental, yang banyak di              which need judgement in order to be able to reliably
     antaranya memerlukan pertimbangan untuk dapat                quantify any necessary adjustments to arrive at the
     secara andal mengukur penyesuaian yang                       final discount rates. In determining the incremental
     diperlukan untuk sampai pada tingkat diskonto akhir.         borrowing rate, the Group considers the following
     Dalam menentukan suku bunga pinjaman                         main factors: the Group’s corporate credit risk, the
     inkremental, Grup mempertimbangkan faktor-faktor             lease term, the lease payment term, the economic
     utama berikut: risiko kredit korporat Grup, jangka           environment, the time at which the lease is entered
     waktu sewa, jangka waktu pembayaran sewa,                    into, and the currency in which the lease payments
     lingkungan ekonomi, waktu di mana sewa                       are denominated.
     dimasukkan, dan mata uang di mana pembayaran
     sewa ditentukan.

     Grup menentukan jangka waktu sewa sebagai                    The Group determines the lease term as the non-
     jangka waktu sewa yang tidak dapat dibatalkan,               cancellable term of the lease, together with any
     bersama dengan setiap periode yang tercakup                  periods covered by an option to extend the lease if
     dalam opsi untuk memperpanjang sewa jika cukup               it is reasonably certain to be exercised, or any
     pasti akan dilaksanakan, atau setiap periode yang            periods covered by an option to terminate the
     tercakup dalam opsi untuk mengakhiri sewa, jika              lease, if it is reasonably certain not to be exercised.
     cukup pasti untuk tidak dilakukan.

     Pertimbangan dilakukan dalam mengevaluasi                    The Group applies judgement in evaluating whether
     apakah cukup pasti akan menggunakan opsi untuk               it is reasonably certain whether or not to exercise
     memperbarui atau mengakhiri sewa. Artinya, Grup              the option to renew or terminate the lease. That is,
     mempertimbangkan seluruh faktor relevan yang                 it considers all relevant factors that create an
     menciptakan insentif ekonomi untuk melakukan                 economic incentive for it to exercise either the
     pembaruan       atau     penghentian.   Grup     juga        renewal or termination. The Group also considers
     mempertimbangkan apakah ada penalti signifikan               whether there are significant penalties to terminate
     untuk     membatalkan        (atau    untuk     tidak        (or not extend) the contracts, any leasehold
     memperpanjang) kontrak, adanya             leasehold         improvement are expected to have a significant
     improvement yang diperkirakan memiliki nilai sisa            remaining value or other factors including historical
     yang signifikan atau faktor lain mencakup sejarah            lease durations and the costs and business
     durasi sewa dan biaya serta halangan bisnis untuk            disruption required to replace the leased assets in
     menggantikan aset sewa dalam menelaah hak yang               assessing the enforceable rights to extend the
     dapat dipaksakan untuk memperpanjang sewa                    lease beyond the written contract.
     diluar kontrak tertulis.

     Grup menilai kembali masa sewa jika ada peristiwa            The Group reassesses the lease term if there is a
     atau perubahan signifikan dalam keadaan yang                 significant event or change in circumstances that is
     berada   dalam    kendali   dan     memengaruhi              within its control and affects its ability to exercise or
     kemampuan Grup untuk menggunakan atau tidak                  not to exercise the option to renew or to terminate.
     menggunakan opsi untuk memperbarui atau
     menghentikan.
Page 223
                                                 PT AVIA AVIAN Tbk
                                        DAN ENTITAS ANAK/AND SUBSIDIARIES

                                              Lampiran 5/39 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                        NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                             FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                             31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                      (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                      unless otherwise stated)


4.   KAS DAN SETARA KAS                                      4.   CASH AND CASH EQUIVALENTS

                                                   2023               2022

     Kas                                                                                                      Cash on hand
       Rupiah                                             5,056              7,016                                Rupiah
       Lain-lain                                             76                 56                                Others

     Total kas                                            5,132              7,072                       Total cash on hand

     Kas di bank                                                                                           Cash in banks
       Rupiah                                                                                        Indonesian Rupiah
         PT Bank Mandiri (Persero) Tbk               126,532              62,396        PT Bank Mandiri (Persero) Tbk
         PT Bank UOB Indonesia                        90,891              57,721              PT Bank UOB Indonesia
         PT Bank Danamon Indonesia Tbk                69,072             199,722      PT Bank Danamon Indonesia Tbk
         PT Bank Central Asia Tbk                     22,262               6,538            PT Bank Central Asia Tbk
         PT Bank Rakyat Indonesia                                                           PT Bank Rakyat Indonesia
             (Persero) Tbk                                4,887              7,717                   (Persero) Tbk
         PT Bank Tabungan Negara                                                           PT Bank Tabungan Negara
             (Persero) Tbk                                4,668                  -                   (Persero) Tbk
         PT Bank OCBC NISP Tbk                            1,465              2,978          PT Bank OCBC NISP Tbk
         Lain-lain                                        4,597              2,565                            Others
       Dolar AS                                                                                               US Dollar
         PT Bank Mandiri (Persero) Tbk                      38                511       PT Bank Mandiri (Persero) Tbk

     Total kas di bank                               324,412             340,148                         Total cash in banks

     Deposito                                                                                              Time deposits
       Rupiah                                                                                                   Rupiah
         PT Bank Tabungan Negara Tbk                 900,000             250,000       PT Bank Tabungan Negara Tbk
         PT Bank Mandiri (Persero) Tbk                 1,000               1,500       PT Bank Mandiri (Persero) Tbk
         PT Bank Rakyat Indonesia                                                          PT Bank Rakyat Indonesia
            (Persero) Tbk                                     -          800,000                    (Persero) Tbk
         PT Bank Maybank Indonesia Tbk                        -          150,000      PT Bank Maybank Indonesia Tbk
         PT Bank Permata Tbk                                  -          472,000               PT Bank Permata Tbk
         PT Bank Pan Indonesia Tbk                            -          150,000          PT Bank Pan Indonesia Tbk

     Total deposito                                  901,000           1,823,500                         Total time deposits

     Total (tidak termasuk cerukan)                 1,230,544          2,170,720         Total (excluding bank overdraft)

     Tingkat bunga deposito per tahun           2.50% - 6.15%      4.50% - 5.50%        Annual interest rate of time deposits

     Kas dan setara kas termasuk hal-hal berikut untuk            Cash and cash equivalents include the following for
     kepentingan penyajian laporan arus kas:                      the purposes of the statement of cash flows:

                                                   2023               2022

     Kas dan setara kas                             1,230,544          2,170,720                Cash and cash equivalents
     Cerukan (Catatan 16)                              (5,222)            (7,229)                 Bank overdraft (Note 16)

     Kas dan setara kas                             1,225,322          2,163,491               Cash and cash equivalents

     Tidak terdapat saldo kas dan setara kas yang                 There is no balance of cash and cash equivalents
     digunakan   sebagai   jaminan  dan    dibatasi               pledged as collateral and restricted in use.
     penggunaannya.
Page 224
                                                PT AVIA AVIAN Tbk
                                       DAN ENTITAS ANAK/AND SUBSIDIARIES

                                             Lampiran 5/40 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                      NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                           FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                           31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                    (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                    unless otherwise stated)


5.   PIUTANG USAHA                                         5.   TRADE RECEIVABLES

                                                 2023               2022

     Pihak ketiga                                 1,230,494          1,062,798                              Third parties
     Pihak berelasi (Catatan 6)                      14,018             11,192                   Related parties (Note 6)

     Subtotal                                     1,244,512          1,073,990                                   Subtotal
     Dikurangi: cadangan kerugian                                                         Less: allowance for impairment
       penurunan nilai piutang usaha                 (1,469)               (337)            losses of trade receivables

     Total                                        1,243,043          1,073,653                                      Total

     Analisa umur piutang usaha adalah sebagai berikut:         The aging analysis of trade receivables is as
                                                                follows:

                                                 2023               2022

     Belum jatuh tempo                            1,198,915          1,046,744                                 Not yet due
     Lewat jatuh tempo:                                                                                          Overdue:
       1 - 30 hari                                   23,254             14,685                               1 - 30 days
       31 - 60 hari                                  10,669              7,776                              31 - 60 days
       Lebih dari 60 hari                            11,674              4,785                             Over 60 days
     Dikurangi: cadangan kerugian                                                         Less: allowance for impairment
       penurunan nilai piutang usaha                 (1,469)               (337)             losses of trade receivables

     Total piutang usaha                          1,243,043          1,073,653                  Total trade receivables

     Pada tanggal 31 Desember 2023 dan 2022, seluruh            As at 31 December 2023 and 2022, all of the
     piutang usaha Grup dalam mata uang Rupiah.                 Group’s trade receivables are denominated in
                                                                Rupiah.

     Pada tanggal 31 Desember 2023, piutang usaha               As at 31 December 2023, trade receivables
     sebesar Rp1.198.915 (2022: Rp1.046.744) belum              amounting to Rp1,198,915 (2022: Rp1,046,744)
     jatuh tempo dan tidak mengalami penurunan nilai.           were not past due nor impaired. These receivables
     Piutang ini akan jatuh tempo dalam waktu 1-60 hari.        will be due in 1-60 days.

     Pada tanggal 31 Desember 2023 terdapat piutang             As at 31 December 2023, trade receivables
     usaha sebesar Rp44.128 (2022: Rp26.909) telah              amounting to Rp44,128 (2022: Rp26,909) were past
     lewat jatuh tempo namun tidak mengalami                    due but not impaired. These relate to a number of
     penurunan nilai. Piutang tersebut berasal dari             independent customers for whom there is no recent
     sejumlah pelanggan yang tidak memiliki sejarah             history of default.
     gagal bayar.

     Pada tanggal 31 Desember 2023, piutang usaha               As at 31 December 2023, trade receivables
     sebesar Rp1.469 (2022: Rp337) mengalami                    amounting to Rp1,469 (2022: Rp337) were impaired
     penurunan nilai dan telah diprovisikan.                    and have been fully provisioned.

     Pada tanggal 31 Desember 2023 dan 2022, piutang            As at 31 December 2023 and 2022, the Group’s
     usaha tertentu Grup dijaminkan atas fasilitas              certain trade receivables are pledged as collateral
     pinjaman dari PT Bank Mandiri (Persero) Tbk                for the loan facilities from PT Bank Mandiri
     dengan perjanjian fidusia senilai Rp562.860                (Persero) Tbk with fiduciary agreement totalling
     (Catatan 16).                                              Rp562,860 (Note 16).

     Berdasarkan hasil penelaahan keadaan piutang               Based on a review of the status of receivable
     pada akhir periode pelaporan, manajemen Grup               accounts at the end of the reporting period, the
     berkeyakinan bahwa penyisihan penurunan nilai              Group’s management believes that the allowance
     telah memadai untuk menutup kemungkinan                    for impairment losses is adequate to cover possible
     kerugian atas tidak tertagihnya piutang usaha.             losses from uncollectible receivables.

     Lihat Catatan 31 mengenai risiko kredit piutang            Refer to Note 31 on the credit risk of trade
     usaha untuk memahami bagaimana Grup mengelola              receivables to understand how the Group manages
     dan mengukur kualitas kredit piutang usaha.                and measures the credit quality of trade
                                                                receivables.
Page 225
                                              PT AVIA AVIAN Tbk
                                     DAN ENTITAS ANAK/AND SUBSIDIARIES

                                              Lampiran 5/41 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                        NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                             FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                             31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                      (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                      unless otherwise stated)


6.   SALDO DAN          TRANSAKSI     DENGAN       PIHAK     6.   BALANCES   AND              TRANSACTIONS             WITH
     BERELASI                                                     RELATED PARTIES

     a.   Sifat hubungan pihak berelasi                           a.     Nature of relationship

          Dalam kegiatan usaha normal, Grup melakukan                    In the normal course of business, the Group
          transaksi usaha dan lainnya dengan pihak-                      enters into trade and other transactions with
          pihak berelasi, yang terafiliasi dengan Grup                   related parties, which are affiliated with the
          melalui kepemilikan langsung dan tak langsung,                 Group through direct or indirect ownership,
          dan/atau dibawah entitas sepengendali. Harga                   and/or under common control entity. Sales or
          jual atau beli antara pihak-pihak berelasi                     purchase prices among related parties are
          ditentukan berdasarkan persyaratan yang                        made based on terms agreed by the parties.
          disetujui oleh kedua belah pihak.

          Rincian pihak berelasi, sifat hubungan dan jenis               The details of related parties, the nature of
          transaksi yang signifikan dengan pihak-pihak                   relationships and the types of significant
          berelasi adalah sebagai berikut:                               transactions with related parties are as follows:
             Pihak-pihak
           berelasi/Related                                                                 Jenis transaksi/
               parties           Sifat hubungan/Nature of relationship                   Nature of transactions

           PT Avia Avian       Memiliki personil manajemen kunci yang        Penjualan barang, pembelian alat-alat dan
             Industri Pipa       sama        dan       dalam      entitas      bahan      bangunan,      pendapatan       sewa
                                 sepengendali/Have     the   same    key       bangunan        kantor     dan     penggantian
                                 management personnel and under                biaya/Sales of goods, purchase of tools and
                                 common control entity                         building materials, office building rent income
                                                                               and expense reimbursement
           PT Mitra Mulia      Memiliki personil manajemen kunci yang        Penjualan barang, pembelian alat-alat dan
             Makmur              sama        dan       dalam      entitas      bahan bangunan, dan pendapatan sewa
                                 sepengendali/Have     the   same    key       bangunan pabrik/ Sales of goods, purchase
                                 management personnel and under                of tools and building materials and factory
                                 common control entity                         building rent income
           PT Sarana Depo      Memiliki personil manajemen kunci yang        Penjualan barang dan sewa bangunan/Sales of
             Kencana             sama        dan       dalam      entitas      goods and building rent
                                 sepengendali/Have     the   same    key
                                 management personnel and under
                                 common control entity
           PT Wahana           Memiliki personil manajemen kunci yang        Penjualan barang, pembelian alat-alat dan
             Lentera Raya        sama        dan       dalam      entitas      bahan     bangunan,       pendapatan       sewa
                                 sepengendali/Have     the   same    key       bangunan      kantor       dan     penggantian
                                 management personnel and under                biaya/Sales of goods, purchase of tools and
                                 common control entity                         building materials, office building rent income
                                                                               and expense reimbursement
           PT Kencana          Memiliki personil manajemen kunci yang        Penjualan barang, pembelian alat-alat dan
             Lintasindo          sama        dan       dalam      entitas      bahan     bangunan         dan     penggantian
             Internasional       sepengendali/Have     the   same    key       biaya/Sales of goods, purchase of tools and
                                 management personnel and under                building     materials       and       expense
                                 common control entity                         reimbursement
           PT Kasakata Kimia   Memiliki personil manajemen kunci yang        Pendapatan sewa gedung kantor/Office building
                                 sama        dan       dalam      entitas      rent income
                                 sepengendali/Have     the   same    key
                                 management personnel and under
                                 common control entity
           PT Panca            Memiliki personil manajemen kunci yang        Penjualan barang dan pembelian alat-alat dan
             Kalsiumindo         sama        dan       dalam      entitas      bahan bangunan/Sales of goods and
             Perkasa             sepengendali/Have     the   same    key       purchases of tools and building materials
                                 management personnel and under
                                 common control entity
Page 226
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                                       DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                  Lampiran 5/42 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                               NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                                    FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                                    31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                             (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                             unless otherwise stated)


6.   SALDO DAN TRANSAKSI                 DENGAN        PIHAK     6.   BALANCES   AND     TRANSACTIONS                      WITH
     BERELASI (lanjutan)                                              RELATED PARTIES (continued)

     a.   Sifat hubungan pihak berelasi (lanjutan)                    a.   Nature of relationship (continued)

          Rincian pihak berelasi, sifat hubungan dan jenis                 The details of related parties, the nature of
          transaksi yang signifikan dengan pihak-pihak                     relationships and the types of significant
          berelasi adalah sebagai berikut:                                 transactions with related parties are as follows:
             Pihak-pihak
           berelasi/ Related                                                                      Jenis transaksi/
                parties             Sifat hubungan/Nature of relationship                      Nature of transactions

          PT Megadepo             Memiliki personil manajemen kunci yang             Penjualan barang dan pembelian alat-alat dan
           Indonesia                 sama          dan        dalam      entitas      bahan bangunan/Sales of goods and
                                     sepengendali/Have       the    same    key       purchases of tools and building materials
                                     management personnel and under common
                                     control entity
          PT Caturkarda Depo      Memiliki personil manajemen kunci yang             Penjualan barang dan pembelian alat-alat dan
           Bangunan Tbk              sama          dan       dalam       entitas       bahan bangunan/Sales of goods and
                                     sepengendali/Have       the    same    key        purchases of tools and building materials
                                     management        personnel    and   under
                                     common control entity
          PT Bira Industri        Memiliki personil manajemen kunci yang             Pendapatan sewa gedung pabrik/Factory
           Rejeki Agung              sama          dan       dalam       entitas       building rent income
                                     sepengendali/Have       the    same    key
                                     management        personnel    and   under
                                     common control entity
          PT Wita Indo            Dalam entitas sepengendali/Under common            Pendapatan sewa gedung kantor/Office
           Talisayan                 control entity                                    building rent income
          PT Umaq Tukung          Dalam entitas sepengendali/Under common            Pendapatan sewa gedung kantor/Office
           Mandiri Utama             control entity                                    building rent income
          PT Wita Internasional   Dalam entitas sepengendali/Under common            Pendapatan sewa gedung kantor/Office
           Bisnis Artisan            control entity                                    building rent income
          PT Sarana Daya          Dalam entitas sepengendali/Under common            Pendapatan sewa gedung kantor/Office
           Hutama                    control entity                                    building rent income
          PT Bangun Bersama       Investasi pada ventura bersama/Investment in       Pendapatan sewa bangunan kantor dan
           Solusindo                 joint venture                                     pembelian bahan bangunan/Office building
                                                                                       rental income and purchases of building
                                                                                       materials
          Dewan Komisaris         Manajemen personil kunci/Key management            Gaji dan imbalan kerja jangka pendek
           dan Direksi/Board        personnel                                          lainnya/Salaries and other short-term
           of Commissioners                                                            compensation benefits
           and Directors

     b.   Saldo dengan pihak berelasi                                 b.   Balances with related parties
                                                       2023                 2022
          Piutang usaha                                                                                       Trade receivables
          PT Caturkarda Depo Bangunan Tbk                     6,361                 3,726      PT Caturkarda Depo Bangunan Tbk
          PT Megadepo Indonesia                               5,936                 3,509                PT Megadepo Indonesia
          PT Bangun Bersama Solusindo                         1,135                 3,355          PT Bangun Bersama Solusindo
          Lain-lain                                             586                   602                                Others
          Total                                             14,018                 11,192                                    Total
          Persentase terhadap total aset                    0.13%                  0.10%               Percentage to total assets
          Piutang lain-lain                                                                                   Other receivables
          PT Avia Avian Industri Pipa                       46,376                 25,533             PT Avia Avian Industri Pipa
          PT Wahana Lentera Raya                             6,086                  8,350              PT Wahana Lentera Raya
          PT Kencana Lintasindo Internasional                2,532                  1,192     PT Kencana Lintasindo Internasional
          Lain-lain                                          1,544                    885                                 Others
          Total                                             56,538                 35,960                                    Total
          Persentase terhadap total aset                    0.51%                  0.33%               Percentage to total assets
Page 227
                                                PT AVIA AVIAN Tbk
                                       DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                 Lampiran 5/43 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                           NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                                FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                                31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                         (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                         unless otherwise stated)


6.   SALDO DAN TRANSAKSI                 DENGAN     PIHAK      6.   BALANCES   AND     TRANSACTIONS                    WITH
     BERELASI (lanjutan)                                            RELATED PARTIES (continued)

     b.   Saldo dengan pihak berelasi (lanjutan)                    b.   Balances with related parties (continued)
                                                     2023                2022

          Beban dibayar dimuka                                                                            Prepaid expenses
          PT Sarana Depo Kencana                        46,623                      -               PT Sarana Depo Kencana

          Total                                         46,623                      -                                   Total

          Persentase terhadap total aset                 0.42%                      -             Percentage to total assets

          Utang usaha                                                                                        Trade payables
          PT Avia Avian Industri Pipa                  160,993              131,189               PT Avia Avian Industri Pipa
          PT Mitra Mulia Makmur                         53,092               46,688                  PT Mitra Mulia Makmur
          PT Wahana Lentera Raya                        32,379               37,263                PT Wahana Lentera Raya
          PT Kencana Lintasindo Internasional           23,444               21,030       PT Kencana Lintasindo Internasional
          PT Bangun Bersama Solusindo                    6,305                5,500           PT Bangun Bersama Solusindo
          PT Panca Kalsiumindo Perkasa                   3,108                1,634           PT Panca Kalsiumindo Perkasa

          Total                                        279,321              243,304                                     Total

          Persentase terhadap total liabilitas          22.43%              19.99%             Percentage to total liabilities

          Utang lain-lain                                                                                    Other payables
          Lain-lain                                          121                  75                                 Others

          Total                                              121                  75                                    Total

          Persentase terhadap total liabilitas           0.01%               0.01%             Percentage to total liabilities

          Pendapatan diterima dimuka                                                                      Unearned revenue
          Lain-lain                                         1,802               1,840                                Others

          Total                                             1,802               1,840                                   Total

          Persentase terhadap total liabilitas           0.14%               0.15%             Percentage to total liabilities

          Liabilitas sewa                                                                                   Lease liabilities
          PT Sarana Depo Kencana                            4,186            53,889                 PT Sarana Depo Kencana

          Persentase terhadap total liabilitas           0.34%               4.43%             Percentage to total liabilities

     c.   Transaksi dengan pihak berelasi                           c.   Transactions with related parties

                                                     2023                2022

          Pendapatan                                                                                                Revenue
          PT Avia Avian Industri Pipa                   25,026                  230               PT Avia Avian Industri Pipa
          PT Caturkarda Depo Bangunan Tbk               23,125               20,913        PT Caturkarda Depo Bangunan Tbk
          PT Megadepo Indonesia                         20,568               17,788                  PT Megadepo Indonesia
          PT Bangun Bersama Solusindo                    5,424                4,144            PT Bangun Bersama Solusindo
          PT Wahana Lentera Raya                         3,674                  105                 PT Wahana Lentera Raya
          PT Kencana Lintasindo Internasional            2,995                    1       PT Kencana Lintasindo Internasional
          Lain-lain                                      3,510                2,193                                   Others

          Total                                         84,322               45,374                                     Total

          Persentase terhadap
            total pendapatan, neto                       1.20%               0.68%         Percentage to total revenues, net
Page 228
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                                      DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                  Lampiran 5/44 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                            NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                                 FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                                 31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                          (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                          unless otherwise stated)


6.   SALDO DAN TRANSAKSI                DENGAN       PIHAK      6.   BALANCES   AND     TRANSACTIONS                      WITH
     BERELASI (lanjutan)                                             RELATED PARTIES (continued)

     c.   Transaksi dengan pihak berelasi (lanjutan)                 c.   Transactions with related parties (continued)

                                                      2023                2022

          Pembelian persediaan                                                                      Purchase of inventories
          PT Avia Avian Industri Pipa                   875,847             792,694                PT Avia Avian Industri Pipa
          PT Mitra Mulia Makmur                         311,327             281,421                   PT Mitra Mulia Makmur
          PT Wahana Lentera Raya                        193,168             215,680                 PT Wahana Lentera Raya
          PT Kencana Lintasindo Internasional           107,115             116,890        PT Kencana Lintasindo Internasional
          PT Panca Kalsiumindo Perkasa                   30,283              22,491            PT Panca Kalsiumindo Perkasa
          PT Bangun Bersama Solusindo                    22,229              11,759            PT Bangun Bersama Solusindo
          Lain-lain                                       1,529                 179                                    Others

          Total                                        1,541,498           1,441,114                                       Total

          Persentase terhadap total
            beban pokok                                                                                    Percentage to total
            penjualan                                    40.21%              36.24%                       cost of goods sold

          Pendapatan sewa gedung kantor                                                           Factory and office building
            dan pabrik                                                                                      rental income
          PT Wahana Lentera Raya                             1,114               1,154              PT Wahana Lentera Raya
          Lain-lain                                          2,879               2,744                                Others

          Total                                              3,993               3,898                                     Total

          Persentase terhadap total                                                                  Percentage to total other
            penghasilan/(beban) lain-lain, neto          50.26%              23.86%                  income/(expenses), net

     d.   Kompensasi manajemen kunci                                 d.   Key management compensation

          Gaji dan kompensasi kesejahteraan jangka                        Salaries and other short-term compensation
          pendek lainnya yang dibebankan untuk Dewan                      benefits expensed to the Group’s Board of
          Komisaris dan Direksi Grup untuk tahun yang                     Commissioners and Directors for the years
          berakhir pada tanggal 31 Desember 2023 dan                      ended 31 December 2023 and 2022 amounted
          2022 masing-masing adalah sebesar Rp99.820                      to Rp99,820 and Rp94,566, respectively.
          dan Rp94.566.


7.   PIUTANG LAIN-LAIN                                          7.   OTHER RECEIVABLES

                                                      2023                2022

     Pihak berelasi (Catatan 6)                          56,538              35,960                      Related parties (Note 6)
     Pihak ketiga                                                                                                   Third parties
       Piutang bunga investasi pada                                                         Interest receivables of investment
         surat utang negara                              40,100              62,430                    in government bonds
       Lain-lain                                          9,231               5,172                                     Others

     Total                                              105,869             103,562                                        Total

     Berdasarkan penilaian manajemen atas kerugian                        Based on management’s assessment of the
     kredit ekspektasian, manajemen Grup berkeyakinan                     expected credit losses, the management of the
     bahwa kerugian kredit ekspektasian mendekati nol,                    Group believes that the expected credit losses
     sehingga pencadangan penurunan nilai atas piutang                    are close to zero, as such, the provision for
     lain-lain tidak diperlukan.                                          impairment of other receivables is not
                                                                          necessary.
Page 229
                                            PT AVIA AVIAN Tbk
                                   DAN ENTITAS ANAK/AND SUBSIDIARIES

                                           Lampiran 5/45 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                     NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                          FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                          31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                   (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                   unless otherwise stated)


8.   PERSEDIAAN                                           8.   INVENTORIES

                                                2023               2022

     Barang jadi                                   996,609            935,800                           Finished goods
     Bahan baku                                    303,031            346,541                            Raw materials
     Persediaan dalam
       perjalanan                                   86,436             64,672                      Inventories in transit
     Barang promosi                                 57,417             30,848                        Promotional goods
     Barang dalam proses                            45,887             43,115                          Work in process
     Bahan pembantu                                 33,355             32,577                                  Supplies
     Suku cadang                                     6,055              6,967                               Spare parts

     Subtotal                                     1,528,790         1,460,520                                   Subtotal
     Penyisihan persediaan usang                                                             Provision for obsolescence
       dan lambat bergerak                           (9,241)           (13,291)           and slow-moving inventories

     Total                                        1,519,549         1,447,229                                      Total

     Mutasi penyisihan persediaan usang dan lambat             Movement in the provision for obsolescence and
     bergerak adalah sebagai berikut:                          slow-moving inventories are as follows:

                                                2023               2022

     Saldo awal                                     13,291              24,878                       Beginning balance
     Pemulihan                                      (4,050)            (11,587)                              Recovery

     Saldo akhir                                       9,241           13,291                          Ending balance

     Berdasarkan penelaahan atas kondisi dan tingkat           Based on the review of the condition and turnover
     perputaran    persediaan,     manajemen     Grup          of the inventory items, the Group’s management
     berkeyakinan bahwa penyisihan persediaan usang            believes that the provision for obsolescence and
     dan lambat bergerak tersebut cukup untuk menutup          slow-moving inventories is adequate to cover any
     kemungkinan kerugian dari penurunan nilai                 possible losses from the decrease in the value of
     persediaan.                                               inventories.

     Pada tanggal 31 Desember 2023 dan 2022, seluruh           As at 31 December 2023 and 2022, all inventories
     persediaan dijaminkan atas fasilitas pinjaman dari        are pledged as collateral for the loan facilities from
     PT Bank Mandiri (Persero) Tbk dengan perjanjian           PT Bank Mandiri (Persero) Tbk with fiduciary
     fidusia senilai Rp763.198 (Catatan 16).                   agreements totalling Rp763,198 (Note 16).

     Persediaan diasuransikan terhadap risiko kerugian         Inventories are covered against losses from fire or
     kebakaran atau pencurian dan risiko lainnya               theft and other risks under blanket amounting to
     berdasarkan suatu paket polis dengan nilai                US$57.6 million and Rp1,890,012 as at
     pertanggungan sebesar AS$57,6 juta dan                    31 December 2023 (2022: US$65.4 million and
     Rp1.890.012 pada tanggal 31 Desember 2023                 Rp2,422,977), which in management’s opinion are
     (2022: AS$65,4 juta dan Rp2.422.977), yang                adequate to cover any possible losses arising from
     menurut pendapat manajemen cukup untuk                    such risks.
     menutup kemungkinan kerugian atas risiko-risiko
     tersebut.
Page 230
                                             PT AVIA AVIAN Tbk
                                    DAN ENTITAS ANAK/AND SUBSIDIARIES

                                              Lampiran 5/46 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                      NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                           FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                           31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                    (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                    unless otherwise stated)


9.   INVESTASI                                               9.   INVESTMENTS

                                                  2023                 2022

     Surat utang negara                             2,993,887          3,875,023                     Government bonds
     Deposito berjangka                             1,740,000                  -                         Time deposits
     Reksa dana                                        20,200                  -                          Mutual funds

     Total                                          4,754,087          3,875,023                                  Total

     a.   Investasi jangka pendek                                 a.   Short-term investments

          Investasi jangka pendek terdiri atas deposito                Short-term investments comprise of time
          berjangka dengan jangka waktu 6-12 bulan.                    deposits with 6-12 months term. The
          Saldo pada tanggal 31 Desember 2023 adalah                   outstanding balance as at 31 December 2023
          sebesar Rp1.740.000 (2022: nihil). Seluruh                   amounting to Rp1,740,000 (2022: nil). All
          investasi jangka pendek didenominasi dalam                   short-term investments are denominated in
          mata uang Rupiah. Tingkat suku bunga                         Rupiah. Annual interest rate of the time
          deposito tersebut pada tahun 2023 adalah                     deposits in 2023 is 6% - 6.10% (2022: nil).
          sebesar 6% - 6,10% (2022: nihil).

          Lihat Catatan 31 mengenai risiko kredit dari                 Refer to Note 31 on the credit risk of the short-
          investasi jangka pendek untuk memahami                       term investments to understand how the Group
          bagaimana Grup mengelola dan mengukur                        manages and measures the credit quality of
          kualitas kredit atas investasi jangka pendek.                short-term investments.

     b.   Investasi pada surat utang negara                       b.   Investment in government bonds

          Seluruh investasi pada surat utang negara                    All investments in government bonds are
          didenominasi dalam mata uang Rupiah.                         denominated in Rupiah.

          Surat Utang Negara (“SUN”) diterbitkan oleh                  SUN issued by the Government of the
          Pemerintah Republik Indonesia dengan tingkat                 Republic of Indonesia bear fixed interest rates
          suku bunga tetap antara 5,13% sampai dengan                  ranging from 5.13% to 8.25% per annum and
          8,25% per tahun dan akan jatuh tempo pada                    will be due on various dates from 15 June 2025
          berbagai tanggal antara tanggal 15 Juni 2025                 to 15 April 2032. Investment in government
          sampai dengan 15 April 2032. Investasi pada                  bonds is used for the Group’s working capital
          SUN akan digunakan untuk keperluan modal                     purposes. As such, the investment is
          kerja Grup, sehingga investasi tersebut                      presented as current assets in the consolidated
          disajikan sebagai aset lancar pada laporan                   statement of financial position.
          posisi keuangan konsolidasian.

          Bunga atas SUN ini akan diterima setiap 6                    The interest of the SUN will be received every
          (enam) bulan sekali. Pendapatan bunga efektif                6 (six) months. Effective interest income
          yang diperoleh selama tahun berjalan adalah                  earned during the year amounted to
          sebesar    Rp149.646    (2022:   Rp249.970)                  Rp149,646 (2022: Rp249,970) (Note 28).
          (Catatan 28).

          Pada tanggal 31 Desember 2023, kerugian nilai                As at 31 December 2023, the net unrealised
          wajar neto yang belum direalisasi atas investasi             loss of fair value on investment in debt
          pada instrumen utang sebesar Rp56.408 (2022:                 instruments of Rp56,408 (2022: Rp138,276)
          Rp138.276) diakui dalam ekuitas sebagai                      was recognised in equity under changes in fair
          perubahan nilai wajar atas investasi pada surat              value of investment in government bonds.
          utang negara.

          Untuk tahun yang berakhir pada tanggal                       For the year ended 31 December 2023, the net
          31 Desember 2023, kerugian neto atas nilai                   loss in fair value amounted to Rp30,857 (2022:
          wajar sebesar Rp30.857 (2022: Rp19.554)                      Rp19,554) and has been reclassified from
          telah direklasifikasi dari ekuitas ke laba rugi              equity to profit or loss in the current year.
          tahun berjalan.
Page 231
                                                   PT AVIA AVIAN Tbk
                                          DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                Lampiran 5/47 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                         NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                              FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                              31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                       (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                       unless otherwise stated)


9.   INVESTASI (lanjutan)                                    9.   INVESTMENTS (continued)

     b.   Investasi pada surat utang negara (lanjutan)            b.    Investment in government bonds (continued)

          Manajemen berpendapat bahwa tidak terdapat                   The management is of the opinion that there are
          kejadian-kejadian atau perubahan keadaan                     no events or changes in circumstances that
          yang mengindikasikan adanya bukti objektif                   indicate a permanent decline in the fair value of
          penurunan nilai wajar aset keuangan pada nilai               the financial assets at FVOCI, therefore, no
          wajar melalui penghasilan komprehensif lain,                 provision for impairment is necessary.
          sehingga,     tidak    diperlukan   cadangan
          penurunan.


10. PROPERTI INVESTASI                                       10. INVESTMENT PROPERTIES

                                                    2023                2022

     Tanah                                             272,487             268,971                                   Land
     Bangunan                                           17,626              17,015                                 Building

     Total                                             290,113             285,986                                    Total

     Mutasi perubahan properti investasi adalah sebagai           The movement of investment properties is as
     berikut:                                                     follows:

                                                    2023                2022

     Saldo awal                                        285,986             295,640                       Beginning balance
     Perubahan nilai wajar (Catatan 27)                  4,127              (9,654)          Changes in fair value (Note 27)

     Saldo akhir                                      290,113              285,986                         Ending balance

     Properti    investasi   berupa   bangunan      yang          Building held in investment properties represents
     merupakan gedung perkantoran yang terletak di Jl.            the office building located on Jl. Ahmad Yani No.
     Ahmad Yani No. 317, Dukuh Menanggal,                         317, Dukuh Menanggal, Gayungan, Surabaya,
     Gayungan, Surabaya, Jawa Timur, serta tanah yang             Jawa Timur and land located in Makassar covering
     terletak di Makassar seluas 175.798 m 2 yang dimiliki        an area of 175,798 m2 that is owned by the Group.
     sendiri oleh Grup. Bangunan merupakan gedung                 Buildings represents office building under Build,
     perkantoran dalam kontrak Bangun Guna Serah                  Operate and Transfer (“BOT”) contract for 30 years
     (“BOT”) selama 30 tahun yang disewakan kepada                that are rented to related parties, while the land is
     pihak-pihak berelasi, sedangkan tanah merupakan              empty land for which management has not yet
     tanah     kosong     dimana    manajemen     belum           determined the intended use.
     menentukan tujuan penggunaannya.

     Nilai wajar properti investasi pada tanggal                  The fair values of investment properties as at 31
     31 Desember 2023 didasarkan pada penilaian yang              December 2023 are based on valuations performed
     dilakukan oleh penilai independen, Kantor Jasa               by independent appraisals, Kantor Jasa Penilai
     Penilai Publik (“KJPP”) Suhartanto Budhihardjo dan           Publik (“KJPP”) Suhartanto Budhihardjo dan Rekan
     Rekan melalui laporannya tanggal 31 Januari 2024             through its reports dated 31 January 2024 (2022:
     (2022: 12 Januari 2023) (untuk tanah) dan KJPP               12 January 2023) (for land) and KJPP Iskandar dan
     Iskandar dan Rekan tanggal 13 Februari 2024                  Rekan dated 13 February 2024 (2022: 24 February
     (2022: 24 Februari 2023) (untuk bangunan).                   2023) (for building).
Page 232
                                               PT AVIA AVIAN Tbk
                                      DAN ENTITAS ANAK/AND SUBSIDIARIES

                                              Lampiran 5/48 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                       NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                            FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                            31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                     (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                     unless otherwise stated)


10. PROPERTI INVESTASI (lanjutan)                           10. INVESTMENT PROPERTIES (continued)

   Jumlah yang diakui dalam laporan laba rugi dan                Amounts recognised in the consolidated statements
   penghasilan komprehensif lain atas properti                   of profit or loss and other comprehensive income for
   investasi selama tahun 2023 dan 2022 adalah                   investment properties during the year 2023 and
   sebagai berikut:                                              2022 are as follows:

                                                  2023               2022

   Pendapatan sewa berasal dari                                                                Rental income derived from
     properti investasi                                  2,960              3,011                 investment properties
   Biaya operasi langsung
     (termasuk perbaikan dan                                                                     Direct operating expenses
     pemeliharaan)                                    (4,360)             (2,574)    (including repairs and maintenance)
   Perubahan nilai wajar                               4,127              (9,654)                     Changes in fair value

   Pengukuran nilai wajar atas properti investasi tanah          The fair value measurement of land held in
   menggunakan Level 2 hierarki nilai wajar. Penilaian           investment properties uses Level 2 of the fair value
   atas properti investasi tanah dilakukan dengan                hierarchy. The valuation of land held in investment
   pendekatan pasar. Input yang paling signifikan                property is carried out using the market approach.
   dalam pendekatan penilaian ini adalah asumsi                  The most significant input in this approach is the
   harga tanah per meter persegi (m2) yang didasarkan            land price per square metre (m2) assumption which
   dari harga pasar tanah di sekitar lokasi, disesuaikan         is based on the market price of land located in the
   dengan perbedaan atribut utama seperti jenis dan              vicinity, adjusted for the difference in main attributes
   hak yang melekat pada properti, lokasi, karakteristik         such as the type and rights on the property,
   fisik, ukuran, dan penggunaan aset, sebagai berikut:          location, physical characteristics, size and use of
                                                                 the assets, as follows:

                                                  2023               2022

   Tanah                                                                                                             Land
   Harga per m2 (nilai penuh)                      1,550,000           1,530,000                Price per m2 (full amount)

   Pengukuran nilai wajar atas properti investasi                The fair value measurement of building held in
   bangunan menggunakan Level 3 hierarki nilai wajar.            investment properties uses Level 3 of the fair value
   Penilaian atas properti investasi bangunan dengan             hierarchy. The valuation of building held in
   pendekatan pendapatan (metode arus kas                        investment property is carried out using an income
   diskontoan). Input yang tidak dapat diobservasi yang          approach (discounted cash flow method).
   digunakan dalam menentukan nilai wajar properti               Unobservable input used in determining the fair
   investasi bangunan adalah sebagai berikut:                    value of building held in investment properties is as
                                                                 follows:

                                                  2023               2022

   Bangunan                                                                                                       Building
   Tarif sewa per m2 (termasuk biaya jasa -                                                  Rental rate per m2 (including
      nilai penuh)                                 2,200,000           2,140,000          service charge - full amount)
   Tingkat diskonto                                  10.62%              10.27%                              Discount rate
Page 233
                                                    PT AVIA AVIAN Tbk
                                           DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                            Lampiran 5/49 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                                                  NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                                                       FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                                                       31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                                                (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                                                unless otherwise stated)


10. PROPERTI INVESTASI (lanjutan)                                                10. INVESTMENT PROPERTIES (continued)

   Sensitivitas dari nilai wajar properti investasi                                     Sensitivity of fair value of building investment
   bangunan terhadap asumsi utama adalah sebagai                                        property on the principal assumptions is as follows:
   berikut:

                                                                Perubahan nilai wajar/Changes in fair value
                                                                 Kenaikan asumsi/      Penurunan asumsi/
                                  Perubahan asumsi/                 Increase in           Decrease in
                                     Changes in                    assumption             assumption
              Asumsi                 assumption                  2023        2022       2023         2022                               Assumptions

   Tanah                                                                                                                                                Land
   Harga per m2                            1%                   Kenaikan           Kenaikan        Penurunan      Penurunan                      Price per m2
                                                                 sebesar/           sebesar/        sebesar/       sebesar/
                                                                 increase           increase        decrease       decrease
                                                                 by 1%              by 1%           by 1%          by 1%

   Bangunan                                                                                                                                          Building
   Tarif sewa (termasuk                    1%                   Kenaikan           Kenaikan        Penurunan      Penurunan             Rental rate (including
     biaya jasa)                                                 sebesar/           sebesar/        sebesar/       sebesar/                service charge)
                                                                 increase           increase        decrease       decrease
                                                                 by 0.96%           by 1.02%        by 0.96%       by 1.02%
   Tingkat diskonto                        1%                   Penurunan          Penurunan       Kenaikan       Kenaikan                      Discount rate
                                                                 sebesar/           sebesar/        sebesar/       sebesar/
                                                                 decrease           decrease        increase       increase
                                                                 by 0.91%           by 0.98%        by 0.92%       by 0.99%



11. ASET TETAP, NETO                                                             11. FIXED ASSETS, NET
                                                                                 2023
                          Saldo awal/                                                                                        Saldo akhir/
                          Beginning       Penambahan/         Pengurangan/          Reklasifikasi/         Revaluasi/          Ending
                           balance          Additions          Deductions          Reclassifications       Revaluation         balance

   Nilai revaluasi                                                                                                                           Revalued amount
   Tanah                       540,322                  -                    -                         -          2,912            543,234              Land

   Harga perolehan                                                                                                                                          Cost
   Kepemilikan langsung                                                                                                                       Direct ownership
   Bangunan dan                                                                                                                                   Buildings and
      prasarana                377,175            2,029                      -                 20,713                    -         399,917    improvements
   Mesin dan                                                                                                                                    Machinery and
      peralatan                770,821            7,420              (3,594)                   39,933                    -         814,580        equipment
                                                                                                                                                      Electricity
   Instalasi listrik            94,601              516                   -                     2,616                    -          97,733       installations
   Kendaraan                   301,189           62,221             (37,886)                        -                    -         325,524             Vehicles
   Peralatan kantor            178,760           37,228                (443)                        -                    -         215,545    Office equipment

   Subtotal                   2,262,868         109,414             (41,923)                   63,262             2,912          2,396,533             Subtotal
   Aset tetap dalam                                                                                                                               Assets under
      pembangunan               50,665          106,309                      -                 (63,262)                  -          93,712       construction

   Subtotal                   2,313,533         215,723             (41,923)                           -          2,912          2,490,245             Subtotal

   Akumulasi                                                                                                                                     Accumulated
      penyusutan                                                                                                                               depreciation
   Kepemilikan langsung                                                                                                                       Direct ownership
   Bangunan dan                                                                                                                                   Buildings and
      prasarana                 82,053           12,511                      -                         -                 -          94,564    improvements
   Mesin dan                                                                                                                                    Machinery and
      peralatan                365,258           57,703              (2,722)                           -                 -         420,239        equipment
                                                                                                                                                      Electricity
   Instalasi listrik            35,221            8,620                   -                            -                 -          43,841       installations
   Kendaraan                   132,620           37,161             (29,947)                           -                 -         139,834              Vehicles
   Peralatan kantor            110,295           22,521                (212)                           -                 -         132,604    Office equipment

   Subtotal                    725,447          138,516             (32,881)                           -                 -         831,082             Subtotal

   Nilai buku                 1,588,086                                                                                          1,659,163     Net book value
Page 234
                                                    PT AVIA AVIAN Tbk
                                           DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                            Lampiran 5/50 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                                                  NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                                                       FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                                                       31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                                                (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                                                unless otherwise stated)


11. ASET TETAP, NETO (lanjutan)                                                  11. FIXED ASSETS, NET (continued)
                                                                                 2022
                          Saldo awal/                                                                                        Saldo akhir/
                          Beginning       Penambahan/         Pengurangan/          Reklasifikasi/         Revaluasi/          Ending
                           balance          Additions          Deductions          Reclassifications       Revaluation         balance

   Nilai revaluasi                                                                                                                           Revalued amount
   Tanah                       527,376                  -                    -                         -         12,946            540,322              Land

   Harga perolehan                                                                                                                                          Cost
   Kepemilikan langsung                                                                                                                       Direct ownership
   Bangunan dan                                                                                                                                   Buildings and
      prasarana                350,546           3,004                       -                23,625                     -         377,175    improvements
   Mesin dan                                                                                                                                    Machinery and
      peralatan                713,067          39,594                  (353)                 18,513                               770,821         equipment
                                                                                                                                                      Electricity
   Instalasi listrik           100,956             311                  (32)                  (6,634)                    -          94,601       installations
   Kendaraan                   282,225          65,539              (49,826)                   3,251                     -         301,189              Vehicles
   Peralatan kantor            172,924          30,457               (7,569)                 (17,052)                    -         178,760    Office equipment

   Subtotal                   2,147,094        138,905              (57,780)                  21,703             12,946          2,262,868            Subtotal
   Aset tetap dalam                                                                                                                              Assets under
      pembangunan               67,140          41,676                       -               (58,151)                    -          50,665      construction

   Subtotal                   2,214,234        180,581              (57,780)                 (36,448)            12,946          2,313,533             Subtotal

   Akumulasi                                                                                                                                     Accumulated
      penyusutan                                                                                                                               depreciation
   Kepemilikan langsung                                                                                                                       Direct ownership
   Bangunan dan                                                                                                                                   Buildings and
      prasarana                 70,266          11,787                       -                         -                 -          82,053    improvements
   Mesin dan                                                                                                                                    Machinery and
      peralatan                311,681          53,681                  (104)                          -                 -         365,258         equipment
                                                                                                                                                      Electricity
   Instalasi listrik            28,119           7,864                                          (762)                    -          35,221       installations
   Kendaraan                   142,270          36,242              (45,892)                       -                     -         132,620              Vehicles
   Peralatan kantor            110,674          21,390               (3,831)                 (17,938)                    -         110,295    Office equipment

   Subtotal                    663,010         130,964              (49,827)                 (18,700)                    -         725,447             Subtotal

   Nilai buku                 1,551,224                                                                                          1,588,086     Net book value


   Beban penyusutan dibebankan sebagai berikut:                                         The depreciation expenses were charged to the
                                                                                        following:

                                                                 2023                        2022

   Beban penjualan (Catatan 26)                                       69,286                      67,242                   Selling expenses (Note 26)
   Beban umum dan administrasi                                                                                   General and administrative expenses
     (Catatan 26)                                                     37,131                      34,982                                  (Note 26)
   Beban pabrikasi (Catatan 25)                                       32,099                      28,740                  Factory overhead (Note 25)

   Total                                                            138,516                      130,964                                                Total

   Nilai perolehan dari setiap aset tetap yang telah                                    The costs of fixed assets that have been fully
   disusutkan penuh namun masih digunakan pada                                          depreciated but are still being utilised as at
   31 Desember 2023 dan 2022 masing-masing                                              31 December 2023 and 2022 are Rp106,921 and
   sebesar Rp106.921 dan Rp98.667, yang terdiri atas                                    Rp98,667, respectively, which consist of machinery
   mesin dan peralatan, instalasi listrik dan peralatan                                 and equipment, electricity installations and office
   kantor.                                                                              equipment.

   Rincian pelepasan aset tetap adalah sebagai                                          The details of disposal of fixed assets are as
   berikut:                                                                             follows:

                                                                 2023                        2022

   Penerimaan dari pelepasan aset tetap                               14,094                      16,398   Proceeds from disposal of fixed assets
   Nilai buku aset tetap yang dijual                                  (9,042)                     (7,953) Net book value of disposed fixed assets

   Keuntungan pelepasan aset tetap                                                                                   Gain on disposal of fixed assets
     (Catatan 27)                                                       5,052                          8,445                               (Note 27)
Page 235
                                           PT AVIA AVIAN Tbk
                                  DAN ENTITAS ANAK/AND SUBSIDIARIES

                                           Lampiran 5/51 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                   NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                        FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                        31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                 (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                 unless otherwise stated)


11. ASET TETAP, NETO (lanjutan)                           11. FIXED ASSETS, NET (continued)

   Aset tetap dalam pembangunan merupakan proyek             Fixed assets under construction represents projects
   yang masih belum selesai pada tanggal laporan             that have not been completed at the date of the
   keuangan konsolidasian dengan rincian sebagai             consolidated financial statements with the details as
   berikut:                                                  follows:

                                               Perkiraan % penyelesaian/
                                               Estimated % of completion
                                                2023              2022

   Bangunan dan prasarana                         5% - 70%         10% - 90%             Buildings and improvements
   Mesin dan peralatan                            5% - 90%         10% - 90%               Machinery and equipment
   Instalasi listrik                              5% - 80%               90%                    Electricity installations

   Aset tetap dalam pembangunan pada tanggal                 The estimation of completing assets under
   31 Desember 2023 dan 2022 diperkirakan akan               construction as at 31 December 2023 and 2022 will
   selesai pada tahun 2024-2025.                             be in 2024-2025.

   Tidak ada perbedaan yang material antara nilai            There is no material difference between the fair
   wajar dan nilai tercatat dari aset tetap Grup selain      value and carrying value of the Group’s fixed assets
   tanah.                                                    other than land.

   Harga perolehan aset tetap tanah pada tanggal             The acquisition cost of land fixed assets as at
   31 Desember 2023 dan 2022 sebesar Rp300.962.              31 December 2023 and 2022 amounted to
                                                             Rp300,962.

   Grup memiliki beberapa bidang tanah dengan                The Group has land properties with the details as
   rincian sebagai berikut:                                  follows:

              Lokasi/Location               Luasan/Area                    Penggunaan lahan/Land utilisation

   Sidoarjo                                  105,121 m2         Pabrik/Factory
   Serang                                     36,880 m2         Pabrik/Factory
   Medan                                      22,652 m2         Pabrik/Factory
   Cirebon                                   110,211 m2         Pabrik/Factory
   Bekasi                                      2,992 m2         Pabrik/Factory

   Hak atas tanah Grup berupa Sertifikat Hak Guna            The Group’s land represents land-use rights
   Bangunan (“SHGB”) yang memiliki masa berlaku              (“SHGB”) that will expire between 2026 and 2049.
   antara tahun 2026 hingga 2049. Manajemen                  Management believes that the SHGB are
   berpendapat bahwa SHGB tersebut dapat                     extendable.
   diperpanjang.

   Tanah diukur dengan metode revaluasian.                   Land is measured using the revaluation model. The
   Pengukuran nilai wajar tahun 2023 dilakukan oleh          fair value measurement for the year 2023 was
   KJPP Suhartanto Budhihardjo dan Rekan, selaku             carried out by KJPP Suhartanto Budhihardjo dan
   penilai independen, dalam laporannya tanggal              Rekan, as an independent appraiser, in its reports
   31 Januari 2024 dan 15 Februari 2024. Pengukuran          dated 31 January 2024 and 15 February 2024. The
   nilai wajar tahun 2022 dilakukan oleh KJPP                fair value measurement for the year 2022 was
   Suhartanto Budhihardjo dan Rekan dan KJPP                 carried out by KJPP Suhartanto Budhihardjo dan
   Iskandar dan Rekan, selaku penilai independen,            Rekan and KJPP Iskandar dan Rekan, as
   dalam laporannya tanggal 12 Januari 2023 dan              independent appraisers, in their reports 12 January
   23 Februari 2023.                                         2023 and 23 February 2023.
Page 236
                                                PT AVIA AVIAN Tbk
                                       DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                Lampiran 5/52 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                              NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                                   FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                                   31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                            (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                            unless otherwise stated)


11. ASET TETAP, NETO (lanjutan)                                   11. FIXED ASSETS, NET (continued)

   Pengukuran nilai wajar atas tanah menggunakan                      The fair value measurement of land uses Level 2 of
   Level 2 hierarki nilai wajar. Penilaian atas tanah                 the fair value hierarchy. The valuation of the land is
   dilakukan dengan pendekatan pasar. Input yang                      carried out using the market approach. The most
   paling signifikan dalam pendekatan penilaian ini                   significant input in this approach is the land price
   adalah asumsi harga tanah per meter persegi (m 2)                  per square metre (m2) assumption which is based
   yang didasarkan dari harga pasar tanah di sekitar                  on the market price of land located in the vicinity,
   lokasi, disesuaikan dengan perbedaan atribut utama                 adjusted for the difference in main attributes such
   seperti jenis dan hak yang melekat pada properti,                  as the type and rights on the property, location,
   lokasi, karakteristik fisik, ukuran, dan penggunaan                physical characteristics, size and use of the assets,
   aset, sebagai berikut:                                             as follows:

                                                      2023                 2022

   Tanah                                                                                                                     Land
   Harga per m2 (nilai penuh)                       1,190,000 -          1,160,000 -                     Price per m2(full amount)
                                                     4,000,000            4,000,000

   Sensitivitas dari nilai wajar tanah terhadap asumsi                Sensitivity of fair value of land on the principal
   utama adalah sebagai berikut:                                      assumptions is as follows:

                                                      Perubahan nilai wajar/Changes in fair value
                                                       Kenaikan asumsi/      Penurunan asumsi/
                                Perubahan asumsi/         Increase in           Decrease in
                                   Changes in            assumption             assumption
          Asumsi                   assumption          2023        2022       2023         2022               Assumptions

   Tanah                                                                                                                     Land
   Harga per m2                        1%            Kenaikan      Kenaikan    Penurunan     Penurunan                Price per m2
                                                      sebesar/      sebesar/    sebesar/      sebesar/
                                                      increase      increase    decrease      decrease
                                                      by 0.81%      by 0.83%    by 1.18%      by 1.16%

   Pada tanggal 31 Desember 2023 dan 2022, aset                       As at 31 December 2023 and 2022, certain fixed
   tetap tertentu dijaminkan atas fasilitas pinjaman dari             assets are pledged as collateral for the loan
   PT Bank Mandiri (Persero) Tbk dan PT Bank OCBC                     facilities from PT Bank Mandiri (Persero) Tbk and
   NISP Tbk dengan perjanjian fidusia dan perjanjian                  PT Bank OCBC NISP Tbk with fiduciary and
   Hak Tanggungan terhadap aset tetap tertentu senilai                mortgage agreements over certain fixed assets
   Rp967.990 (Catatan 16).                                            amounting to Rp967,990 (Note 16).

   Aset tetap, kecuali tanah, diasuransikan terhadap                  Fixed assets, except for land, are covered against
   risiko kerugian kebakaran dan risiko lain                          losses from fire and other risks under blanket
   berdasarkan suatu paket polis dengan nilai                         policies amounting to US$49.2 million and
   pertanggungan masing-masing sebesar AS$49,2                        Rp1,521,113 as at 31 December 2023 (2022:
   juta dan Rp1.521.113 pada tanggal 31 Desember                      US$42.4 million and Rp1,508,819). Management is
   2023 (2022: AS$42,4 juta dan Rp1.508.819).                         of the opinion that the sum insured is adequate to
   Manajemen       berpendapat         bahwa        nilai             cover any possible losses arising from such risks.
   pertanggungan tersebut cukup untuk menutup
   kemungkinan kerugian atas risiko-risiko tersebut.

   Berdasarkan evaluasi yang dilakukan manajemen,                     Based on management’s evaluation, there were no
   tidak terdapat kejadian atau perubahan atas                        events or changes in circumstances which might
   keadaan yang menunjukkan adanya penurunan nilai                    indicate an impairment in the value of fixed assets
   aset tetap pada tanggal 31 Desember 2023 dan                       as at 31 December 2023 and 2022.
   2022.

   Pada tanggal 31 Desember 2023 dan 2022 tidak                       As at 31 December 2023 and 2022 there were no
   ada aset tetap yang tidak digunakan.                               idle fixed assets.
Page 237
                                                 PT AVIA AVIAN Tbk
                                        DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                Lampiran 5/53 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                           NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                                FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                                31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                         (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                         unless otherwise stated)


12. INVESTASI PADA VENTURA BERSAMA                              12. INVESTMENT IN JOINT VENTURE

                                                     2023                2022

   Saldo awal                                            16,400              17,741                           Beginning balance
   Bagian atas laba/(rugi) ventura bersama                  898              (1,426)     Share of profit/(loss) of a joint venture
   Bagian dari penghasilan komprehensif lain                                             Share of other comprehensive income
     ventura bersama                                            -                 85                         of a joint venture

   Nilai tercatat                                        17,298              16,400                           Carrying amount

   Pada tanggal 31 Desember 2023 dan 2022, ventura                   As at 31 December 2023 and 2022, the joint
   bersama yang dimiliki oleh Grup adalah sebagai                    venture of the Group was as follows:
   berikut:

       Nama entitas/        Domisili/      Persentase kepemilikan/                        Kegiatan usaha/
        Entity name         Domicile       Percentage of ownership                        Business activity

   PT Bangun Bersama                                                    Industri semen, mortar dan beton/
     Solusindo              Indonesia              50%                     Industry of cement, mortar and concrete

   Tabel di bawah ini menampilkan ringkasan informasi                The table below provides a summary of the financial
   keuangan ventura bersama Grup, dimana tidak                       information of the Group’s joint venture, which is
   diperdagangkan di bursa.                                          unlisted.

                                                     2023                2022

   Aset lancar                                           42,192              39,659                               Current assets
   Aset tidak lancar                                        870                 251                          Non-current assets
   Liabilitas jangka pendek                               8,053               6,732                             Current liabilities
   Liabilitas jangka panjang                                412                 378                       Non-current liabilities
   Pendapatan                                            26,065              14,255                                      Revenue
   Laba/(rugi) tahun berjalan                             1,797              (2,853)                    Profit/(loss) for the year
   Total penghasilan/(rugi) komprehensif                                                    Total comprehensive income/(loss)
      tahun berjalan                                        1,797             (2,683)                              for the year
   Arus kas yang digunakan untuk                                                                             Cash flows used in
      aktivitas operasi                                      (286)           (10,134)                from operating activities
   Arus kas yang digunakan untuk                                                                             Cash flows used in
      aktivitas investasi                                     (60)               (47)                      investing activities
   Arus kas yang diperoleh dari                                                                       Cash flows provided from
      aktivitas pendanaan                                       -            28,500                        financing activities

   Rekonsiliasi atas ringkasan informasi keuangan                    The reconciliation of the summarised financial
   yang disajikan terhadap nilai buku dari kepentingan               information presented to the carrying amount of the
   Grup dalam ventura bersama adalah sebagai                         Group’s interests in the joint venture is as follows:
   berikut:

                                                     2023                2022

   Pada awal tahun                                       32,800              35,483                At the beginning of the year
   Total penghasilan/(rugi) komprehensif                                                    Total comprehensive income/(loss)
     tahun berjalan                                         1,797             (2,683)                            for the year

   Pada akhir tahun                                      34,597              32,800                       At the end of the year
   Persentase kepemilikan                                  50%                 50%                     Percentage of ownership

   Nilai tercatat                                        17,298              16,400                           Carrying amount

   Pada tanggal 31 Desember 2023 dan 2022,                           As at 31 December 2023 and 2022, management
   manajemen berkeyakinan bahwa tidak terdapat                       believes that there are no impairment indicators on
   indikasi penurunan nilai atas nilai tercatat investasi            the carrying amounts of investment in joint venture.
   pada ventura bersama.
Page 238
                                                  PT AVIA AVIAN Tbk
                                         DAN ENTITAS ANAK/AND SUBSIDIARIES

                                               Lampiran 5/54 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                        NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                             FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                             31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                      (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                      unless otherwise stated)


13. UTANG USAHA                                              13. TRADE PAYABLES

                                                   2023               2022

   Pihak berelasi - Rupiah (Catatan 6)                279,321            243,304           Related parties - Rupiah (Note 6)

   Pihak ketiga:                                                                                              Third parties:
     Rupiah                                           255,394            236,979                                  Rupiah
     Dolar AS                                          75,147             48,987                               US Dollar
     CNY                                               21,896             42,674                                    CNY
     Euro                                              16,845                  -                                    Euro
     SGD                                                2,055              1,973                                    SGD

   Subtotal                                           371,337            330,613                                   Subtotal

   Total                                              650,658            573,917                                      Total


14. BEBAN AKRUAL                                             14. ACCRUED EXPENSES

                                                   2023               2022

   Pemasaran dan promosi                              237,647            197,065                  Marketing and promotion
   Komisi penjualan                                    32,326             33,058                        Sales commission
   Ongkos angkut                                       26,938             21,491                                   Freight
   Lain-lain (masing-masing di bawah
     Rp1.000)                                             4,924              5,834            Others (each below Rp1,000)

   Total                                              301,835            257,448                                      Total


15. SEWA                                                     15. LEASE

   Grup memiliki kontrak sewa bangunan yang                       The Group has lease contracts for buildings that
   memiliki jangka waktu sewa antara dua hingga                   have lease terms between two to thirty years used
   tiga puluh tahun yang digunakan dalam operasinya.              in its operation. The Group is restricted from
   Grup dibatasi untuk menyewakan kembali aset                    assigning and subleasing the leased assets. The
   sewaan.      Grup    menerapkan     pengecualian               Group applies the short-term lease recognition
   pengakuan sewa jangka pendek untuk kontrak sewa                exemptions for lease contracts with terms of up to
   dengan jangka waktu sampai dengan satu tahun.                  one year.

   Kontrak sewa ini merupakan sewa bangunan oleh                  These lease contracts represent leases for
   PT TKTW dan PT TKBI, dari PT Sarana Depo                       buildings by PT TKTW and PT TKBI, from PT
   Kencana, pihak berelasi, dan dari pihak ketiga, yang           Sarana Depo Kencana, a related party, and from
   digunakan sebagai kantor cabang.                               third parties, which are used as branch offices.

   Grup juga memiliki sewa peralatan kantor dengan                The Group also has certain leases of office
   nilai yang rendah. Grup menerapkan pengecualian                equipment with low value. The Group applies the
   pengakuan ‘sewa aset bernilai rendah’ untuk sewa               ‘lease of low-value assets’ recognition exemptions
   tersebut.                                                      for these leases.
Page 239
                                                PT AVIA AVIAN Tbk
                                       DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                  Lampiran 5/55 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                               NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                                    FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                                    31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                             (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                             unless otherwise stated)


15. SEWA (lanjutan)                                             15. LEASE (continued)

    Di bawah ini adalah jumlah tercatat dari aset hak-                 Below are the carrying amounts of right-of-use
    guna yang diakui pada laporan posisi keuangan                      assets recognised on the Group’s consolidated
    konsolidasian Grup dan mutasinya:                                  statement of financial position and its movements:

                                                                     2023
                                  Saldo awal/                                              Saldo akhir/
                                  Beginning        Penambahan/        Pengurangan/           Ending
                                   balance          Additions          Deduction             balance

    Harga perolehan                                                                                               Acquisition cost
    Bangunan                            322,006          37,112             (179,327)           179,791                  Buildings

                                                                                                                      Accumulated
    Akumulasi penyusutan                                                                                             depreciation
    Bangunan                            189,816          74,050             (179,327)            84,539                   Buildings
    Nilai tercatat                      132,190                                                  95,252           Carrying amount

                                                                     2022
                                  Saldo awal/                                              Saldo akhir/
                                  Beginning        Penambahan/        Pengurangan/           Ending
                                   balance          Additions          Deduction             balance

    Harga perolehan                                                                                               Acquisition cost
    Bangunan                            237,053          84,953                      -          322,006                  Buildings
                                                                                                                      Accumulated
    Akumulasi penyusutan                                                                                             depreciation
    Bangunan                            121,312          68,504                      -          189,816                   Buildings

    Nilai tercatat                      115,741                                                 132,190           Carrying amount

    Jumlah yang diakui dalam laporan laba rugi dan                     Amounts recognised in the consolidated statement
    penghasilan komprehensif lain konsolidasian adalah                 of profit or loss and other comprehensive income
    sebagai berikut:                                                   are as follows:
                                                      2023                  2022

    Beban penyusutan aset hak-guna -                                                           Depreciation of right-of-use assets -
      beban penjualan (Catatan 26)                       73,478                 67,678                 selling expenses (Note 26)
    Beban penyusutan aset hak-guna -                                                           Depreciation of right-of-use assets -
      beban umum dan administrasi                             572                   826      general and administrative expenses
      (Catatan 26)                                                                                                       (Note 26)
    Beban bunga atas liabilitas sewa                                                            Interest expense on lease liabilities
      (Catatan 29)                                           3,724                 5,929                                 (Note 29)
    Sewa aset bernilai rendah dan                                                                             Low value assets and
      sewa jangka pendek                                      759                   793                          short-term leases

    Total                                                78,533                 75,226                                         Total

    Di bawah ini adalah jumlah tercatat dari liabilitas                Below are the carrying amounts of lease liabilities
    sewa yang diakui pada laporan posisi keuangan                      recognised on the Group’s consolidated statement
    konsolidasian Grup:                                                of financial position:
                                                      2023                  2022

    Saldo awal                                            73,533                69,409                           Beginning balance
    Penambahan                                            11,993                29,498                                   Additions
    Pembayaran                                           (58,836)              (25,374)                                  Payments

    Saldo akhir                                           26,690                73,533                             Ending balance
    Dikurangi: bagian jangka pendek                      (10,965)              (50,397)                        Less: current portion

    Bagian jangka panjang                                15,725                 23,136                        Non-current portion
Page 240
                                                      PT AVIA AVIAN Tbk
                                             DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                            Lampiran 5/56 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                                                 NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                                                      FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                                                      31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                                               (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                                               unless otherwise stated)


15. SEWA (lanjutan)                                                          15. LEASE (continued)

    Pembayaran sewa pembiayaan minimum di masa                                     Future minimum lease payments under finance
    mendatang, serta nilai kini atas pembayaran                                    leases together with the present value of the
    minimum sewa pembiayaan pada tanggal 31                                        minimum lease payments as at 31 December 2023
    Desember 2023 dan 2022 adalah sebagai berikut:                                 and 2022 were as follows:
                                                                2023                      2022

    Liabilitas sewa bruto – pembayaran                                                                                          Lease liabilities – future
       sewa di masa mendatang                                                                                                        lease payments
    Tidak lebih dari 1 tahun                                         11,910                         52,118                            Less than 1 year
    1-5 tahun                                                        13,709                         23,594                                      1-5 years
    Lebih dari 5 tahun                                                9,484                          3,360                          More than 5 years
    Total                                                            35,103                         79,072                                           Total
    Beban keuangan di masa depan atas                                                                                          Future financing charges
      liabilitas sewa                                                  (8,413)                      (5,539)                          of lease liabilities

    Nilai kini liabilitas sewa                                       26,690                         73,533         Present value of lease liabilities
    Nilai kini liabilitas sewa adalah                                                                                   Present value of lease liabilities
       sebagai berikut:                                                                                                                  is as follows:
    Tidak lebih dari 1 tahun                                         10,965                         50,397                              Less than 1 year
    1-5 tahun                                                        11,533                         21,741                                     1-5 years
    Lebih dari 5 tahun                                                4,192                          1,395                             More than 5 years

    Total                                                            26,690                         73,533                                           Total

    Tidak ada pembatasan signifikan yang ditetapkan                                There is no significant restriction imposed by lease
    oleh lessor dalam perjanjian sewa pembiayaan                                   arrangements between the lessor and the Group on
    dengan Grup terkait dengan penggunaan aset atau                                the use of the assets or maintenance of certain
    pencapaian kinerja keuangan tertentu.                                          financial performance.


16. PINJAMAN BANK                                                            16. BANK LOANS

                                                                2023                      2022

    PT Bank OCBC NISP Tbk                                              5,222                         7,229                    PT Bank OCBC NISP Tbk

    Grup memiliki beberapa fasilitas pinjaman sebagai                              The Group has several loan facilities as follows:
    berikut:
                        Pemberi                                                                         Tanggal jatuh       Tingkat suku
     Nama entitas/     pinjaman/         Jenis fasilitas/       Mata uang/       Total fasilitas/          tempo/              bunga/           Jaminan/
      Entity name       Lender            Facility type         Currency          Total facility        Maturity date       Interest rate       Collateral

    PT Avia Avian    PT Bank Mandiri Kredit Modal Kerja/         Rupiah            Rp940,000             27 Agustus/           4.25%        Piutang usaha,
     Tbk              (Persero) Tbk   Working Capital Loan                                               August 2024                         persediaan,
                                                                                                                                             dan aset
                                                                                                                                             tetap/Trade
                                                                                                                                             receivables,
                                                                                                                                             inventories and
                                                                                                                                             fixed assets

                                     Letter of Credit (“L/C”)   Dolar AS/        AS$/US$1,500,000
                                      Impor atau SKBDN/         US Dollar
                                      Import L/C or SKBDN

                                     Treasury Line              Dolar AS/        AS$/US$10,000,000
                                                                US Dollar

                                     Bank Garansi/Bank           Rupiah             Rp2,000
                                      Guarantee
Page 241
                                                     PT AVIA AVIAN Tbk
                                            DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                           Lampiran 5/57 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                                             NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                                                  FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                                                  31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                                           (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                                           unless otherwise stated)


16. PINJAMAN BANK (lanjutan)                                                16. BANK LOANS (continued)

   Grup memiliki beberapa fasilitas pinjaman sebagai                            The Group has several loan facilities as follows:
   berikut: (lanjutan)                                                          (continued)
                       Pemberi                                                                       Tanggal jatuh      Tingkat suku
    Nama entitas/     pinjaman/         Jenis fasilitas/       Mata uang/     Total fasilitas/          tempo/             bunga/           Jaminan/
     Entity name       Lender            Facility type         Currency        Total facility        Maturity date      Interest rate       Collateral

   PT TKTW          PT Bank Mandiri Kredit Modal Kerja/         Rupiah          Rp550,000             27 Agustus/          4.25%        Piutang usaha,
                     (Persero) Tbk   Working Capital Loan                                             August 2024                        persediaan,
                                                                                                                                         dan tanah milik
                                                                                                                                         PT Sarana
                                                                                                                                         Depo Kencana/
                                                                                                                                         Trade
                                                                                                                                         receivables,
                                                                                                                                         inventories and
                                                                                                                                         PT Sarana
                                                                                                                                         Depo
                                                                                                                                         Kencana’s land
   PT MPI           PT Bank OCBC    Fasilitas cerukan/          Rupiah          Rp10,000             10 Maret/March        7.45%        Tanah dan
                     NISP Tbk        Overdraft facility                                                  2024                            bangunan/land
                                                                                                                                         and building


   Pada tanggal 31 Desember 2023 dan 2022, Grup                                 As at 31 December 2023 and 2022, the Group has
   memiliki fasilitas pinjaman dari PT Bank Mandiri                             undrawn facilities from PT Bank Mandiri (Persero)
   (Persero) Tbk yang belum digunakan.                                          Tbk.

   Dana yang diperoleh dari pinjaman bank digunakan                             The funds received from the bank loans are used for
   untuk modal kerja. Bank garansi dari PT Bank                                 working capital. Bank guarantee from PT Bank
   Mandiri (Persero) Tbk digunakan untuk jaminan                                Mandiri (Persero) Tbk is used for payment
   pembayaran pembelian gas dari PT Perusahaan                                  guarantee for gas procurement from PT
   Gas Negara (Persero).                                                        Perusahaan Gas Negara (Persero).

   Berdasarkan      perjanjian    pinjaman,    debitur                          Under the loan agreements, the borrowers are
   diharuskan untuk memenuhi persyaratan tertentu,                              required to fulfill certain covenants, such as financial
   seperti persyaratan rasio keuangan dan persyaratan                           covenants and administrative requirements. As at
   administrasi. Pada tanggal 31 Desember 2023 dan                              31 December 2023 and 2022, the Group has
   2022, Grup telah memenuhi persyaratan rasio                                  complied with the financial covenants and
   keuangan dan persyaratan administrasi.                                       administrative requirements.


17. LIABILITAS IMBALAN KERJA                                                17. EMPLOYEE BENEFITS LIABILITY

                                                               2023                    2022

   Imbalan kerja jangka pendek                                      92,174                       72,255               Short-term employee benefits
   Imbalan pascakerja                                               59,521                       47,588                  Post-employment benefits

   Total                                                           151,695                  119,843                                             Total
   Dikurangi: liabilitas jangka pendek                             (97,052)                 (72,255)                          Less: current liabilities

   Liabilitas jangka panjang                                        54,643                       47,588                      Non-current liabilities

   a.   Imbalan kerja jangka pendek                                             a.     Short-term employee benefits
        Imbalan kerja jangka pendek pada tanggal                                       Short-term employee benefits as at 31
        31 Desember 2023 sebesar Rp92.174 (2022:                                       December 2023 amounting to Rp92,174 (2022:
        Rp72.255) terdiri atas akrual atas gaji,                                       Rp72,255) comprise accruals for salary,
        tunjangan hari raya, dan bonus yang akan                                       religious allowance and bonus which will be
        dibayarkan pada tahun berikutnya.                                              paid in the following year.
   b.   Liabilitas imbalan pascakerja                                           b.     Post-employment benefits liability
        Grup mengakui liabilitas imbalan kerja                                         The Group recognised an unfunded employee
        karyawan yang tidak didanai berdasarkan                                        benefits liability in accordance with the
        peraturan yang berlaku. Liabilitas imbalan                                     applicable regulation. The post-employment
        pascakerja dihitung menggunakan metode                                         benefits liability is calculated using the
        Projected Credit Unit.                                                         Projected Credit Unit method.
Page 242
                                              PT AVIA AVIAN Tbk
                                     DAN ENTITAS ANAK/AND SUBSIDIARIES

                                               Lampiran 5/58 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                          NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                               FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                               31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                        (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                        unless otherwise stated)


17. LIABILITAS IMBALAN KERJA (lanjutan)                       17. EMPLOYEE BENEFITS LIABILITY (continued)

   b.   Liabilitas imbalan pascakerja (lanjutan)                   b.   Post-employment              benefits         liability
                                                                        (continued)

        Liabilitas imbalan pascakerja dihitung oleh                     The post-employment benefits liability is
        aktuaris independen, Kantor Konsultan Aktuaria                  calculated by the independent actuary, Kantor
        Riana dan Rekan, dalam laporannya tanggal                       Konsultan Aktuaria Riana dan Rekan, in its
        25 Januari 2024 dan 29 Januari 2024 untuk                       reports dated 25 January 2024 and 29 January
        31 Desember 2023 dan 18 Januari 2023 dan                        2024 for 31 December 2023 and 18 January
        1 Februari 2023 untuk 31 Desember 2022.                         2023 and 1 February 2023 for 31 December
                                                                        2022, respectively.

        Jumlah yang       diakui  pada     laba        rugi             The amount recognised in consolidated profit
        konsolidasian adalah sebagai berikut:                           or loss is as follows:

                                                    2023                2022

        Biaya jasa kini                                    7,627             5,380                         Current service cost
        Biaya bunga                                        3,206             2,804                                Interest cost
        Biaya jasa lalu                                      110            (9,832)                          Past service cost

        Total beban imbalan kerja                       10,943              (1,648)        Total employee benefits expense

        Mutasi nilai kini liabilitas imbalan pascakerja                 Movements in the present value of post-
        adalah sebagai berikut:                                         employment benefits liability are as follows:

                                                    2023                2022

        Saldo awal                                      47,588             53,934                          Beginning balance
        Beban imbalan kerja                             10,943             (1,648)                 Employee benefits expense
        Pembayaran manfaat                              (3,340)            (8,600)                                Benefits paid
        Kerugian aktuaria neto dibebankan ke                                                      Net actuarial loss charged to
          penghasilan komprehensif lain                    4,330               3,902            other comprehensive income

        Saldo akhir                                     59,521             47,588                             Ending balance
        Dikurangi: bagian jangka pendek                 (4,878)                 -                         Less: current portion

        Bagian jangka panjang                           54,643             47,588                        Non-current portion

        Asumsi-asumsi dasar yang digunakan untuk                        The principal assumptions used in determining
        menentukan liabilitas imbalan pascakerja                        the post-employment benefits liability are as
        adalah sebagai berikut:                                         follows:

        Usia pensiun             :         55-65 tahun pada tahun 2023 dan 2022            :                    Retirement age
                                              55-65 years old in 2023 and 2022
        Tingkat kenaikan gaji    :   1% - 7% pada tahun 2023, 4% - 7% pada tahun 2022      :   Annual rate of increase in salary
           tahunan                           1% - 7% % in 2023, 4% - 7% in 2022
        Tingkat diskonto         :   6,75% - 7% pada tahun 2023, 7% - 7,25% pada tahun     :                      Discount rate
                                                            2022
                                           6.75% - 7% in 2023, 7% - 7.25% in 2022
        Tingkat kematian         :                       TMI-IV-2019                       :                      Mortality rate
        Tingkat kecacatan        :       5% dari tingkat kematian/5% of mortality rate     :                      Disability rate

        Grup terekspos dengan beberapa risiko melalui                   The Group is exposed to a number of risks
        program imbalan pasti. Risiko yang paling                       through its defined benefit pension plans. The
        signifikan adalah sebagai berikut:                              most significant risks are as follows:

        Perubahan tingkat diskonto                                      Changes in discount rate
        Penurunan tingkat diskonto akan meningkatkan                    A decrease in the discount rate will increase
        liabilitas program.                                             plan liabilities.
Page 243
                                           PT AVIA AVIAN Tbk
                                  DAN ENTITAS ANAK/AND SUBSIDIARIES

                                           Lampiran 5/59 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                    NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                         FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                         31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                  (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                  unless otherwise stated)


17. LIABILITAS IMBALAN KERJA (lanjutan)                   17. EMPLOYEE BENEFITS LIABILITY (continued)

   b.   Liabilitas imbalan pascakerja (lanjutan)               b.   Post-employment          benefits       liability
                                                                    (continued)

        Tingkat kenaikan gaji                                       Salary growth rate
        Liabilitas imbalan pensiun Grup berhubungan                 The Group’s pension obligations are linked to
        dengan tingkat kenaikan gaji, dan semakin                   the salary growth rate, and a higher salary
        tinggi tingkat kenaikan gaji akan menyebabkan               growth rate will lead to higher liabilities.
        semakin besarnya liabilitas.

        Analisis sensitivitas terhadap asumsi utama                 The sensitivity analysis to the key assumptions
        yang digunakan dalam menentukan liabilitas                  used in determining post-employment benefits
        imbalan pascakerja adalah sebagai berikut:                  liability is as follows:

                                      Tingkat diskonto/        (Penurunan)/kenaikan/
                                        Discount rate           (Decrease)/increase

        31 Desember 2023                   1%/(1%)                  (Rp4,602)/ Rp6,675           31 December 2023
        31 Desember 2022                   1%/(1%)                  (Rp3,876)/ Rp5,335           31 December 2022

                                        Tingkat gaji/          Kenaikan/(penurunan)/
                                         Salary rate            Increase/(decrease)

        31 Desember 2023                   1%/(1%)                  Rp7,072/ (Rp5,027)           31 December 2023
        31 Desember 2022                   1%/(1%)                  Rp5,676/ (Rp4,236)           31 December 2022

        Durasi rata-rata tertimbang dari liabilitas                 The weighted average duration of the benefit
        imbalan kerja di akhir periode pelaporan                    obligation at the end of the reporting period is
        berkisar antara 13,97 tahun sampai 18,53 tahun              within a range of 13.97 years to 18.53 years in
        pada tahun 2023 dan berkisar antara 12,79                   2023 and within a range of 12.79 years to
        tahun sampai 18,27 tahun pada tahun 2022.                   18.27 years in 2022.

        Jadwal jatuh tempo dari liabilitas imbalan                  The maturity profile of undiscounted post-
        pascakerja tanpa diskonto adalah sebagai                    employment benefit liabilities is as follows:
        berikut:

                                                   2023             2022

        Kurang dari 1 tahun                            4,878             3,173                      Within one year
        1-5 tahun                                      9,186             8,374                             1-5 years
        Lebih dari 5 tahun                           517,988           444,724                     More than 5 years

        Total                                        532,052           456,271                                 Total

        Manajemen berkeyakinan bahwa saldo liabilitas               Management believes that the balance of post-
        imbalan pascakerja tersebut cukup untuk                     employment benefits liability is sufficient to
        memenuhi imbalan minimum sesuai dengan                      cover the minimum benefits required under the
        peraturan yang berlaku.                                     prevailing regulations.


18. PERPAJAKAN                                            18. TAXATION

   a.   Pajak dibayar dimuka                                   a.   Prepaid taxes

                                                   2023             2022

        Perusahaan                                                                                      The Company
        PPN                                           19,016                 -                                  VAT

        Subtotal                                      19,016                 -                              Subtotal
Page 244
                                                PT AVIA AVIAN Tbk
                                       DAN ENTITAS ANAK/AND SUBSIDIARIES

                                             Lampiran 5/60 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                       NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                            FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                            31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                     (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                     unless otherwise stated)


18. PERPAJAKAN (lanjutan)                                  18. TAXATION (continued)

   a.   Pajak dibayar dimuka (lanjutan)                         a.   Prepaid taxes (continued)
                                                 2023                2022

        Entitas anak                                                                                        Subsidiaries
        Pajak penghasilan badan
          (“PPh badan"):                                                                    Corporate income tax (“CIT"):
          Pasal 28                                   29,432                     -                            Article 28
        PPN                                             549                 1,002                                    VAT
        Pajak penghasilan pasal 4(2)                    504                   531                 Income tax article 4(2)

        Subtotal                                     30,485                 1,533                                 Subtotal

        Total                                        49,501               1,533                                    Total
        Bagian lancar                               (20,069)             (1,533)                          Current portion

        Bagian tidak lancar                          29,432                     -                   Non-current portion

   b.   Utang pajak                                             b.   Taxes payable
                                                 2023                2022

        Perusahaan                                                                                         The Company
        PPh badan:                                                                                                     CIT:
          Pasal 29 (Catatan 18c)                     43,157             44,841                     Article 29 (Note 18c)
          Pasal 25                                        -             20,819                                 Article 25

        Pajak lainnya:                                                                                       Other taxes:
          Pasal 21                                      1,844               2,420                             Article 21
          Pasal 23                                        400                 433                             Article 23
          Pasal 4(2)                                      140                  30                            Article 4(2)
          PPN                                               -               4,964                                   VAT

        Subtotal                                     45,541             73,507                                    Subtotal

        Entitas anak                                                                                        Subsidiaries
        PPh badan:                                                                                                    CIT:
          Pasal 25                                        82                1,574                             Article 25
          Pasal 29                                         3                3,801                             Article 29
        Pajak lainnya:                                                                                       Other taxes:
          Pasal 4(2)                                    4,713            1,178                              Article 4(2)
          Pasal 21                                      1,848            4,192                                Article 21
          Pasal 23                                        224            2,080                                Article 23
          PPN                                             173           26,065                                      VAT
          Pasal 15                                          -                2                                Article 15

        Subtotal                                        7,043           38,892                                  Subtotal

        Total                                        52,584            112,399                                       Total

   c.   Beban pajak penghasilan                                 c.   Income tax expense
                                                 2023                2022

        Perusahaan                                                                                        The Company
        Kini                                        353,551            242,774                                  Current
        Tangguhan                                   (67,318)            18,879                                 Deferred

        Subtotal                                    286,233            261,653                                   Subtotal

        Entitas anak                                                                                        Subsidiaries
        Kini                                         71,224             88,139                                   Current
        Tangguhan                                    (8,410)            (4,910)                                Deferred

        Subtotal                                     62,814             83,229                                   Subtotal

        Total beban pajak penghasilan               349,047            344,882                Total income tax expense
Page 245
                                                 PT AVIA AVIAN Tbk
                                        DAN ENTITAS ANAK/AND SUBSIDIARIES

                                               Lampiran 5/61 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                          NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                               FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                               31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                        (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                        unless otherwise stated)


18. PERPAJAKAN (lanjutan)                                      18. TAXATION (continued)

   c.   Beban pajak penghasilan (lanjutan)                          c.   Income tax expense (continued)

        Rekonsiliasi antara laba sebelum beban pajak                     Reconciliation between consolidated profit
        penghasilan konsolidasian menurut laporan                        before income tax expense a shown in the
        laba rugi dan penghasilan komprehensif lain                      consolidated statements of profit or loss and
        konsolidasian dengan taksiran laba kena pajak                    other comprehensive income and the estimated
        adalah sebagai berikut:                                          taxable income is as follows:

                                                   2023                  2022

        Laba sebelum beban pajak                                                                    Consolidated profit before
          penghasilan konsolidasian                 1,992,143             1,745,247                    income tax expense
        Dikurangi laba sebelum pajak -
          entitas anak                               (393,808)             (416,826)       Less profit before tax - subsidiaries
        Disesuaikan dengan eliminasi                                                                Adjusted for consolidation
          konsolidasian                              341,014               452,404                                 elimination

        Laba sebelum beban pajak                                                                Profit before tax attributable
          Perusahaan                                1,939,349             1,780,825                        to the Company

        Penyesuaian fiskal:                                                                               Fiscal adjustments:
        Penyusutan aset tetap                             5,824              (1,025)              Depreciation of fixed assets
        Penyisihan persediaan usang                                                                Provision for obsolescence
          dan lambat bergerak                               (982)           (20,745)            and slow-moving inventories
        Aset hak-guna dan sewa                            (1,092)               (20)            Right-of-use assets and lease
        Imbalan kerja                                        354             (6,922)                        Employee benefits
        Provisi retur penjualan dan                                                              Provision for sales return and
          hak retur aset                                 864                 (7,057)                    right of return assets
        Akrual                                       112,891                (24,454)                                   Accruals
        Beban yang tidak dapat dikurangkan              (399)                 1,061                 Non-deductible expenses
        Pendapatan yang dikenakan
          pajak penghasilan final                    (234,760)             (218,143)                Income subject to final tax
        Pendapatan yang bukan
          merupakan objek pajak                      (215,000)             (400,000)                 Income not subject to tax

        Taksiran laba kena pajak -                                                                 Estimated taxable income -
          Perusahaan                                1,607,049             1,103,520                            the Company

        Beban pajak kini                             353,551               242,774                        Current tax expense

        Dikurangi pajak dibayar muka:                                                                      Less prepaid taxes:
          Pasal 22                                    18,745                20,479                                 Article 22
          Pasal 23                                        18                    27                                 Article 23
          Pasal 25                                   291,631               177,427                                 Article 25

        Total                                        310,394               197,933                                        Total

        Taksiran utang pajak                                                               Estimated corporate income tax
          Penghasilan badan Pasal 29 -                                                             payable - Article 29 of
          Perusahaan (Catatan 18b)                    43,157                44,841              the Company (Note 18b)

        Tarif pajak penghasilan yang berlaku               22%                  22%                 Applicable income tax rate

        Laba kena pajak hasil rekonsiliasi menjadi                       The result of taxable income reconciliation is
        dasar Perusahaan dalam pengisian SPT PPh                         the basis for the Company to fill out the
        badan dan akan dilaporkan oleh Perusahaan ke                     corporate income tax SPT and will be reported
        Kantor Pajak.                                                    by the Company to the Tax Office.
Page 246
                                               PT AVIA AVIAN Tbk
                                      DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                    Lampiran 5/62 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                                   NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                                        FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                                        31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                                 (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                                 unless otherwise stated)


18. PERPAJAKAN (lanjutan)                                           18. TAXATION (continued)

   c.   Beban pajak penghasilan (lanjutan)                                  c.   Income tax expense (continued)

        Rekonsiliasi antara hasil perhitungan laba                               Reconciliation between the computation of
        sebelum      beban       pajak     penghasilan                           consolidated profit before tax expense and
        konsolidasian dengan beban pajak penghasilan                             income tax expense as shown in the
        dalam laporan laba rugi dan penghasilan                                  consolidated statements of profit or loss and
        komprehensif lain konsolidasian adalah sebagai                           other comprehensive income is as follows:
        berikut:

                                                         2023                    2022

        Laba sebelum beban pajak                                                                                Consolidated profit before
          penghasilan konsolidasian                        1,992,143              1,745,247                        income tax expense

        Pengaruh pajak atas:                                                                                        The tax effect on:
        Pajak penghasilan dihitung dengan                                                                   Income tax calculated at
          tarif pajak yang berlaku                           438,271               383,954                       applicable tax rate
        Beda tetap dan pembulatan                             13,614                17,670         Permanent difference and rounding
        Pendapatan yang dikenakan
          pajak penghasilan final                             (56,873)              (61,286)                    Income subject to final tax
        Penyesuaian pajak tangguhan tahun
          sebelumnya                                          (45,965)                  4,544       Prior year deferred tax adjustments

        Total beban pajak penghasilan                        349,047               344,882                  Total income tax expense

   d.   Aset/(liabilitas) pajak tangguhan                                   d.   Deferred tax assets/(liabilities)

        Rincian aset dan liabilitas pajak tangguhan                              The details of deferred tax assets and liabilities
        adalah sebagai berikut:                                                  are as follows:

                                                                          2023
                                                                            Dikreditkan ke
                                                           Dikreditkan/      penghasilan
                                                         (dibebankan) ke    komprehensif
                                                             laba rugi/      lain/Credited
                                      Saldo awal/            Credited/          to other         Saldo akhir/
                                      Beginning            (charged) to    comprehensive           Ending
                                       balance             profit or loss       income             balance

        Aset tetap                          (46,036)               3,920                    -           (42,116)                Fixed assets
        Aset hak-guna                       (22,870)               7,808                    -           (15,062)        Right-of-use assets
        Liabilitas sewa                      20,167              (11,454)                   -             8,713             Lease liabilities
        Liabilitas imbalan                                                                                               Employee benefits
           kerja                             10,473                1,671                  953           13,097                      liability
        Beban akrual                              -               74,077                    -           74,077           Accrued expenses
                                                                                                                Provision for obsolescence
        Penyisihan persediaan usang                                                                                     and slow-moving
           dan lambat bergerak                2,924                 (891)                   -            2,033                 inventories
        Provisi retur penjualan               7,036                  911                    -            7,947 Provision for sales return
        Hak retur aset                       (4,571)                (563)                   -           (5,134)      Right to return assets
        Cadangan kerugian                                                                                                     Allowance for
           penurunan nilai                                                                                             impairment losses
           piutang usaha                            74               249                    -              323       of trade receivables

        Total                               (32,803)              75,728                  953           43,878                         Total
Page 247
                                                    PT AVIA AVIAN Tbk
                                           DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                        Lampiran 5/63 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                                           NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                                                FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                                                31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                                         (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                                         unless otherwise stated)


18. PERPAJAKAN (lanjutan)                                                    18. TAXATION (continued)

   d.   Aset/(liabilitas) pajak tangguhan (lanjutan)                             d.   Deferred tax assets/(liabilities) (continued)

        Rincian aset dan liabilitas pajak tangguhan                                    The details of deferred tax assets and liabilities
        adalah sebagai berikut: (lanjutan)                                             are as follows: (continued)

                                                                                    2023
                                                                               Dikreditkan/
                                                                             (dibebankan) ke
                                                                               penghasilan
                                                        (Dibebankan)/         komprehensif
                                                        dikreditkan ke        lain/ Credited/
                                                           laba rugi/          (charged) to
                                       Saldo awal/        (Charged)/               other                         Saldo akhir/
                                       Beginning          credited to        comprehensive                         Ending
                                        balance          profit or loss           income          Transfer         balance

        Disajikan sebagai:                                                                                                               Presented as:
        Aset pajak tangguhan                 5,547                8,410                   959        28,962            43,878      Deferred tax assets
        Liabilitas pajak tangguhan         (38,350)              67,318                    (6)      (28,962)                -     Deferred tax liabilities

        Total                              (32,803)              75,728                   953                -         43,878                       Total

        Terdiri atas:                                                                                                                     Comprises:
        Perusahaan                                                                                                                     The Company
          Aset pajak tangguhan                   -                    -                      -       28,962            28,962  Deferred tax assets
          Liabilitas pajak tangguhan       (38,350)              67,318                     (6)     (28,962)                - Deferred tax liabilities

        Entitas anak                                                                                                                       Subsidiaries
          Aset pajak tangguhan              5,547                  8,410                  959                -         14,916     Deferred tax assets

        Total                              (32,803)              75,728                   953                -         43,878                       Total


                                                                                2022
                                                                                  Dikreditkan ke
                                                                 Dikreditkan/      penghasilan
                                                               (dibebankan) ke    komprehensif
                                                                   laba rugi/      lain/Credited
                                          Saldo awal/              Credited/          to other           Saldo akhir/
                                          Beginning              (charged) to    comprehensive             Ending
                                           balance               profit or loss       income               balance

        Aset tetap                               (34,466)                 (11,570)                  -              (46,036)                 Fixed assets
        Aset hak-guna                            (17,156)                  (5,714)                  -              (22,870)          Right-of-use assets
        Liabilitas sewa                           16,775                    3,392                   -               20,167               Lease liabilities
        Liabilitas imbalan                                                                                                            Employee benefits
           kerja                                     11,865                (2,253)                858               10,470                      liability
                                                                                                                            Provision for obsolescence
        Penyisihan persediaan usang                                                                                                  and slow-moving
           dan lambat bergerak                        5,473                (2,549)                  -                2,924                 inventories
        Provisi retur penjualan                       9,053                (2,017)                  -                7,036 Provision for sales return
        Hak retur aset                               (5,373)                  802                   -               (4,571)      Right to return assets
        Surplus revaluasi                                                                                                           Revaluation surplus
           investasi                                    235                 (235)                   -                    -              of investment
        Properti investasi                           (6,220)               6,220                    -                    -          Investment property
                                                                                                                                            Provision for
        Provisi imbalan kerja                           18                    (15)                  -                    3        employee benefits
        Cadangan kerugian                                                                                                                  Allowance for
           penurunan nilai                                                                                                         impairment losses
           piutang usaha                               104                    (30)                  -                   74       of trade receivables

        Total                                    (19,692)                 (13,969)                858              (32,803)                         Total
Page 248
                                                PT AVIA AVIAN Tbk
                                       DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                     Lampiran 5/64 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                                    NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                                         FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                                         31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                                  (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                                  unless otherwise stated)


18. PERPAJAKAN (lanjutan)                                           18. TAXATION (continued)

   d.   Aset/(liabilitas) pajak tangguhan (lanjutan)                        d.   Deferred tax assets/(liabilities) (continued)

        Rincian aset dan liabilitas pajak tangguhan                              The details of deferred tax assets and liabilities
        adalah sebagai berikut: (lanjutan)                                       are as follows: (continued)

                                                                            2022
                                                                               Dikreditkan/
                                                                             (dibebankan) ke
                                                                               penghasilan
                                                         (Dibebankan)/        komprehensif
                                                         dikreditkan ke       lain/ Credited/
                                                            laba rugi/         (charged) to
                                       Saldo awal/         (Charged)/              other          Saldo akhir/
                                       Beginning           credited to       comprehensive          Ending
                                        balance           profit or loss          income            balance

        Disajikan sebagai:                                                                                                   Presented as:
        Aset pajak tangguhan                       -               4,666                 881               5,547       Deferred tax assets
        Liabilitas pajak tangguhan           (19,692)            (18,635)                (23)            (38,350)     Deferred tax liabilities

        Total                                (19,692)            (13,969)                858             (32,803)                       Total

        Terdiri atas:                                                                                                           Comprises:
        Perusahaan                                                                                                           The Company
          Liabilitas pajak tangguhan         (19,448)            (18,879)                 (23)           (38,350)   Deferred tax liabilities

        Entitas anak                                                                                                           Subsidiaries
          Aset pajak tangguhan                  (244)              4,910                 881              5,547       Deferred tax assets

        Total                                (19,692)            (13,969)                858             (32,803)                       Total

   e.   Administrasi                                                        e.   Administration

        Undang-undang      perpajakan     Indonesia                              The taxation laws in Indonesia require that
        mengatur bahwa masing-masing perusahaan                                  each company in the Group submits tax returns
        dalam Grup menghitung, menetapkan dan                                    on the basis of self-assessment.
        membayar sendiri besarnya jumlah pajak yang
        terutang.

        Berdasarkan     perundang-undangan       yang                            Under prevailing regulations, the Directorate
        berlaku, Direktorat Jenderal Pajak (“DJP”)                               General of Taxes ("DGT") may assess or
        dapat menetapkan atau mengubah kewajiban                                 amend taxes within five years from the time the
        pajak dalam jangka waktu lima tahun sejak saat                           tax becomes due.
        terutangnya pajak.
Page 249
                                         PT AVIA AVIAN Tbk
                                DAN ENTITAS ANAK/AND SUBSIDIARIES

                                         Lampiran 5/65 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                  NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                       FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                       31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                unless otherwise stated)


19. MODAL SAHAM                                        19. SHARE CAPITAL
   Susunan pemegang saham Perusahaan dan                    The Company’s shareholders and their respective
   kepemilikannya pada tanggal-tanggal 31 Desember          ownership as at 31 December 2023 and 2022 are
   2023 dan 2022 adalah sebagai berikut:                    as follows:
                                 Jumlah saham
                                ditempatkan dan
                                 disetor penuh/     Persentase
                                   Number of       kepemilikan/
                                 shares issued      Percentage
           Pemegang saham        and fully paid    of ownership        Total                 Shareholders

   31 Desember 2023                                                                            31 December 2023
   PT Tancorp Surya Sentosa       22,674,971,000         36.60%           226,750        PT Tancorp Surya Sentosa
   PT Wahana Lancar Rejeki        20,129,652,900         32.49%           201,297         PT Wahana Lancar Rejeki
   Archipelago Investment                                                                   Archipelago Investment
     Private Limited               3,902,748,900          6.30%            39,027                  Private Limited
   Robert Christian Tanoko         1,425,406,300          2.30%            14,254          Robert Christian Tanoko
   Rony Tanoko                     1,041,265,000          1.68%            10,413                     Rony Tanoko
   Rudi Tanoko                     1,041,265,000          1.68%            10,413                      Rudi Tanoko
   Wijono Tanoko                       2,504,200          0.00%                25                   Wijono Tanoko
   Kurnia Hadi Sinanto                   556,600          0.00%                 5              Kurnia Hadi Sinanto
   Angelica Tanisia Jozar                169,300          0.00%                 2            Angelica Tanisia Jozar
   Masyarakat (masing-masing                                                                           Public (each
     kepemilikan di bawah 5%)     11,700,397,600         18.89%           117,004             below 5% ownership)

   Jumlah saham beredar           61,918,936,800         99.94%           619,190          Total outstanding shares

   Saham treasuri                    34,618,800           0.06%                 346                Treasury shares

   Total                          61,953,555,600          100%            619,536                             Total

   31 Desember 2022                                                                            31 December 2022
   PT Tancorp Surya Sentosa       22,674,971,000         36.60%           226,750        PT Tancorp Surya Sentosa
   PT Wahana Lancar Rejeki        20,129,652,900         32.49%           201,297         PT Wahana Lancar Rejeki
   Archipelago Investment                                                                   Archipelago Investment
     Private Limited               3,902,748,900          6.30%            39,027                  Private Limited
   Robert Christian Tanoko         1,421,893,800          2.30%            14,219          Robert Christian Tanoko
   Rony Tanoko                     1,041,265,000          1.68%            10,413                     Rony Tanoko
   Rudi Tanoko                     1,041,265,000          1.68%            10,413                      Rudi Tanoko
   Kurnia Hadi Sinanto                   475,000          0.00%                 5              Kurnia Hadi Sinanto
   Angelica Tanisia Jozar                125,000          0.00%                 1            Angelica Tanisia Jozar
   Masyarakat (masing-masing                                                                           Public (each
     kepemilikan di bawah 5%)     11,741,159,000         18.95%           117,411           below 5% ownership)

   Total                          61,953,555,600          100%            619,536                             Total

   Pada tanggal 27 Desember 2023, Perusahaan telah          On 27 December 2023, the Company repurchased
   melakukan pembelian kembali 34.618.800 lembar            34,618,800 of its own ordinary shares through
   saham biasa Perusahaan melalui pembelian pada            purchases on the IDX (Note 1b). This repurchase
   BEI (Catatan 1b). Pembelian kembali saham                transaction is intended to stabilise the Company’s
   Perusahaan ini ditujukan untuk menjaga stabilitas        share price. The total amount paid to acquire the
   harga saham Perusahaan. Jumlah pembayaran                shares was Rp16,369 (Rp426 - Rp500/share - full
   untuk mengakuisisi saham tersebut adalah                 amount). The shares are held as “treasury shares” in
   Rp16.369 (Rp426 - Rp500/lembar saham - nilai             the consolidated statement of financial position as at
   penuh). Saham tersebut dicatat pada ”saham               31 December 2023.
   treasuri”   dalam    laporan  posisi    keuangan
   konsolidasian tanggal 31 Desember 2023.
Page 250
                                              PT AVIA AVIAN Tbk
                                     DAN ENTITAS ANAK/AND SUBSIDIARIES

                                            Lampiran 5/66 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                    NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                         FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                         31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                  (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                  unless otherwise stated)


20. TAMBAHAN MODAL DISETOR                                 20. ADDITIONAL PAID-IN CAPITAL
                                                 2023              2022

   Selisih nilai nominal dengan                                                           Difference between par value
     penerimaan setoran modal                     7,874,557         7,874,557           and proceeds of share capital
   Biaya emisi saham                               (119,356)         (119,356)                  Shares’ issuance costs
   Dampak transaksi antara entitas                                                  Transactions between entities under
     sepengendali                                    38,017            38,017                        common control

   Total                                          7,793,218         7,793,218                                    Total

   Perusahaan melakukan penawaran umum perdana                 The Company made an initial public offering of
   sebanyak 6.200.000.000 lembar saham dengan nilai            6,200,000,000 shares to the public with a par value
   nominal Rp10 (angka penuh) per lembar saham dan             of Rp10 (full amount) per share at an offering price of
   harga penawaran sebesar Rp930 (angka penuh) per             Rp930 (full amount) per share.
   lembar saham.

   Biaya emisi saham merupakan biaya transaksi yang            Share issuance costs are transaction costs arising
   timbul dari aktivitas Penawaran Umum Saham                  from the Initial Public Offering, which includes
   Perdana, antara lain mencakup biaya jasa                    underwriting and management fees, supporting
   penjaminan dan penyelenggaraan, biaya profesi               professional service fees, capital market supporting
   penunjang pasar modal, biaya lembaga penunjang              institution fees and other fees.
   pasar modal, dan biaya lain-lain.


21. SALDO   LABA              YANG       DITENTUKAN        21. APPROPRIATED RETAINED EARNINGS
    PENGGUNAANNYA

   Perusahaan dipersyaratkan oleh Undang-undang                The Company is required by the Limited Liability
   Perseroan Terbatas No. 40 Tahun 2007 efektif tanggal        Company Law No. 40, Year 2007 effective
   16 Agustus 2007 untuk mengalokasikan sampai                 16 August 2007 to allocate to and maintain a non-
   dengan 20% dari modal ditempatkan dan disetor ke            distributable reserve fund until the said reserve
   dalam dana cadangan yang tidak boleh didistribusikan.       reaches at least 20% of the issued and paid capital.

   Berdasarkan       Surat      Keputusan      Direksi         Based on the Board of Directors’ Decision Letter
   No. 036/AA/DIR/XI/2021 bertanggal 7 September 2021          No. 036/AA/DIR/XI/2021 dated 7 September 2021
   tentang Pembentukan Cadangan Umum, Direksi                  concerning the Establishment of General Reserves,
   Perusahaan telah menyetujui untuk menyisihkan               the Company's Board of Directors has agreed to set
   sebagian saldo laba Perusahaan untuk cadangan               aside a portion of the Company's retained earnings for
   umum sebesar Rp112.000 sebagai tindak lanjut atas           general reserves amounting to Rp112,000 as a follow-
   keputusan pemegang saham Perusahaan dalam                   up to the decision of the Company's shareholders in
   Rapat Umum Pemegang Saham tertanggal 14 Juni                the General Meeting of Shareholders dated 14 June
   2021.                                                       2021.

   Berdasarkan Rapat Umum Pemegang Saham                       Based on the Annual General Shareholders’ Meeting
   Tahunan yang diselenggarakan pada tanggal 22 April          held on 22 April 2022, the Company’s shareholders
   2022, para pemegang saham menyetujui tambahan               approved the addition of appropriation for general a
   pencadangan umum sebesar Rp12.000 dari laba                 reserve of Rp12,000 from 2021 consolidated profit.
   konsolidasian tahun 2021.
Page 251
                                                PT AVIA AVIAN Tbk
                                       DAN ENTITAS ANAK/AND SUBSIDIARIES

                                             Lampiran 5/67 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                       NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                            FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                            31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                     (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                     unless otherwise stated)


22. LABA PER SAHAM DASAR DAN DILUSIAN                       22. BASIC AND DILUTED EARNINGS PER SHARE

   Rincian perhitungan laba per saham dasar dan                  Details of basic and diluted earnings per share
   dilusian adalah sebagai berikut:                              computation are as follows:

                                                  2023               2022

   Laba tahun berjalan yang dapat
     diatribusikan kepada pemilik                                                             Profit for the year attributable
     entitas induk                                  1,642,166         1,400,561            to owners of the parent entity
   Rata-rata tertimbang jumlah saham                                                            Weighted average number
     yang beredar                              61,953,271,062    61,953,555,600                     of outstanding shares

   Laba per saham dasar                                                                       Basic and diluted earnings
     dan dilusian (nilai penuh)                          26.51              22.61              per share (full amount)

   Perusahaan tidak memiliki efek berpotensi dilusi              The Company does not have any potentially dilutive
   saham sehingga laba per saham dasar sama                      shares. Therefore, the diluted earnings per share is
   dengan laba per saham dilusian.                               equal to the basic earnings per share.


23. DIVIDEN                                                  23. DIVIDENDS

   Berdasarkan Keputusan Sirkuler Direksi tanggal                Based on Circular Resolution of Directors on
   11 Oktober 2023, dividen interim tunai sebesar                11 October 2023, interim cash dividend amounting
   Rp681.489 (Rp11/lembar saham - nilai penuh) telah             to Rp681,489 (Rp11/share - full amount) was
   disetujui. Dividen interim ini telah dibayarkan pada          approved. These interim dividends were paid on
   31 Oktober 2023.                                              31 October 2023.

   Berdasarkan Akta Notaris No. 2 yang dibuat oleh               Based on Notarial Deed No. 2 by Notary Dr.
   Notaris Dr. Susanti, S.H., M.Kn., dalam Rapat                 Susanti, S.H., M.Kn., in the Annual General
   Umum Pemegang Saham Tahunan Perusahaan                        Shareholders’ Meeting of the Company dated
   tanggal 13 April 2023, para pemegang saham                    13 April 2023, the Company’s shareholders
   menyetujui pembagian dividen tunai dari laba bersih           approved the distribution of cash dividends from
   tahun 2022 sebesar Rp1.301.025 (Rp21/lembar                   2022 profit amounting to Rp1,301,025 (Rp21/share
   saham - nilai penuh) yang terdiri atas dividen interim        - full amount), which comprises of interim dividends
   sebesar Rp619.536 (Rp10/lembar saham - nilai                  amounting to Rp619,536 (Rp10/share - full amount)
   penuh) yang telah dibayarkan pada tanggal                     paid on 6 December 2022, and final dividends of
   6 Desember 2022, dan dividen final sebesar                    Rp681,489 (Rp11/share - full amount) paid on
   Rp681.489 (Rp11/lembar saham - nilai penuh) yang              9 May 2023.
   telah dibayarkan pada tanggal 9 Mei 2023.

   Berdasarkan Akta Notaris No. 2 yang dibuat oleh               Based on Notarial Deed No. 2 by Notary Dr.
   Notaris Dr. Susanti, S.H., M.Kn., dalam Rapat                 Susanti, S.H., M.Kn., in the Annual General
   Umum Pemegang Saham Tahunan Perusahaan                        Shareholders’ Meeting of the Company dated
   tanggal 22 April 2022, para pemegang saham                    22 April 2022, the Company’s shareholders
   menyetujui pembagian dividen tunai dari laba bersih           approved the distribution of cash dividends from
   tahun 2021 sebesar Rp1.195.628 (Rp20,55/lembar                2021    profit    amounting      to    Rp1,195,628
   saham - nilai penuh) yang terdiri atas dividen interim        (Rp20.55/share - full amount), which comprises of
   sebesar Rp400.000 (Rp7,17/lembar saham - nilai                interim dividends amounting to Rp400,000
   penuh) yang telah dibayarkan pada tanggal                     (Rp7.17/share - full amount) paid on 9 August 2021,
   9 Agustus 2021, Rp300.000 (Rp5,38/lembar saham                Rp300,000 (Rp5.38/share - full amount) paid on
   - nilai penuh) yang telah dibayarkan pada tanggal 20          20 September 2021 and final dividends of
   September 2021, dan dividen final sebesar                     Rp495,628 (Rp8/share - full amount) paid on 19
   Rp495.628 (Rp8/lembar saham - nilai penuh) yang               May 2022.
   telah dibayarkan pada tanggal 19 Mei 2022.

   Berdasarkan     Keputusan     Sirkuler   Direksi              Based on the Circular Resolution of the Company’s
   Perusahaan tanggal 16 November 2022, Direksi                  Directors on 16 November 2022, the Company’s
   Perusahaan menyetujui pembagian dividen interim               Directors approved the distribution of 2022 interim
   2022 sebesar Rp619.536 (Rp10/lembar saham -                   dividends amounting to Rp619,536 (Rp10/share -
   nilai penuh) yang telah dibayarkan pada tanggal               full amount) which was paid on 5 December 2022.
   5 Desember 2022.
Page 252
                                           PT AVIA AVIAN Tbk
                                  DAN ENTITAS ANAK/AND SUBSIDIARIES

                                            Lampiran 5/68 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                    NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                         FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                         31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                  (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                  unless otherwise stated)


24. PENDAPATAN NETO                                        24. NET REVENUES

   Pendapatan neto berdasarkan kategori pelanggan:            Net revenues by customers category:

                                                 2023             2022

   Pihak ketiga                                   6,932,560        6,648,797                             Third parties
   Pihak berelasi (Catatan 6)                        84,322           45,374                   Related parties (Note 6)

   Total                                          7,016,882        6,694,171                                     Total

   Pendapatan neto berdasarkan jaringan distribusi:           Net revenues by distribution channel:

                                                 2023             2022

   Distributor sendiri                            6,186,802          5,841,474                       Owned distributor
   Distributor pihak ketiga                         788,926            822,453                   Third party distributor
   Penjualan langsung                                41,154             30,244                             Direct sales

   Total                                          7,016,882          6,694,171                                    Total

   Penjualan melalui distributor sendiri merupakan            Sales through owned distributor represent sales
   penjualan yang dilakukan melalui PT TKTW (entitas          made through PT TKTW (subsidiary) and PT TKBI
   anak) dan PT TKBI (entitas anak tidak langsung)            (indirect subsidiary) to the customers. Sales through
   kepada pelanggan. Penjualan melalui distributor            third party distributor represent sales made through
   pihak ketiga merupakan penjualan yang dilakukan            the Company’s distributors. Direct sales represent
   melalui distributor Perusahaan. Penjualan langsung         sales non-retails/projects.
   merupakan penjualan kepada pelanggan non-
   ritel/proyek.

   Pada tanggal 31 Desember 2023 dan 2022, Grup               As at 31 December 2023 and 2022, the Group does
   tidak memiliki penjualan kepada pelanggan tertentu         not have any sales to certain customers with the
   dengan total penjualan kumulatif individual masing-        individual cumulative amount each exceeding 10% of
   masing melebihi 10% dari total pendapatan                  the total consolidated revenues.
   konsolidasian.

   Seluruh pelanggan adalah pelanggan lokal.                  All customers are local customers.

   Pada tanggal 31 Desember 2023, liabilitas kontrak          As at 31 December 2023, contract liabilities related
   yang berkaitan dengan kontrak penjualan sebesar            to revenue contracts amounted to Rp205,579
   Rp205.579 (2022: Rp127.292) diakui sebagai                 (2022: Rp127,292) were recognised as part of
   bagian dari beban akrual pemasaran dan promosi.            accrued marketing and promotion expense. The
   Liabilitas kontrak tahun sebelumnya telah terealisasi      prior year’s contract liabilities have been realised in
   pada periode pelaporan saat ini dan telah diakui           the current reporting period and have been
   sebagai pendapatan sebesar Rp127.292 (2022:                recognised as revenue amounted to Rp127,292
   Rp118.669).                                                (2022: Rp118,669).
Page 253
                                             PT AVIA AVIAN Tbk
                                    DAN ENTITAS ANAK/AND SUBSIDIARIES

                                           Lampiran 5/69 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                     NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                          FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                          31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                   (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                   unless otherwise stated)


25. BEBAN POKOK PENJUALAN                                  25. COST OF GOODS SOLD
                                               2023                 2022

   Pemakaian bahan baku                         1,948,508            2,144,055                     Raw materials usage
   Upah langsung                                   74,591               76,306                              Direct labour
   Beban pabrikasi:                                                                                    Factory overhead:
   - Upah tak langsung                                88,190            84,029                           Indirect labour -
   - Penyusutan (Catatan 11)                          32,099            28,740                  Depreciation (Note 11) -
   - Listrik, air, dan gas                            18,482            18,383              Electricity, water, and gas -
   - Perawatan dan pemeliharaan                       15,563            15,220                Repair and maintenance -
   - Pemakaian bahan pembantu                          6,094             6,694               Supporting material used -
   - Perlengkapan pabrik                               4,337             5,668                         Factory supplies -
   - Amortisasi aset takberwujud                         781                 -         Amortisation of intangible assets -
   - Lain-lain                                         6,007             6,531                                   Others -

   Total beban produksi                         2,194,652            2,385,626                      Total production cost

   Barang dalam proses                                                                                  Work in process
     Awal tahun                                       43,115            45,828                     At beginning of year
     Akhir tahun                                     (45,887)          (43,115)                          At end of year

   Beban pokok produksi                         2,191,880            2,388,339              Cost of goods manufactured

   Barang jadi                                                                                           Finished goods
     Awal tahun                                   935,800              926,652                     At beginning of year
     Pembelian                                  1,170,476            1,056,376                              Purchases
     Akhir tahun                                 (996,609)            (935,800)                          At end of year

   Beban pokok penjualan sebelum                                                               Cost of goods sold before
     beban barang promosi                       3,301,547            3,435,567               cost of promotional goods
   Beban barang promosi                           531,999              541,204                Cost of promotional goods

   Beban pokok penjualan                        3,833,546            3,976,771                      Cost of goods sold

   Rincian pemasok yang memiliki transaksi pembelian            Detail of suppliers with purchase transactions that
   lebih dari 10% dari total pendapatan usaha                   represent more than 10% of the total consolidated
   konsolidasian adalah sebagai berikut:                        revenue is as follows:

                                               2023                 2022

   PT Avia Avian Industri Pipa                       875,847           792,694               PT Avia Avian Industri Pipa


26. BEBAN OPERASI                                          26. OPERATING EXPENSES

   Rincian beban penjualan adalah sebagai berikut:              The details of selling expenses are as follows:

                                               2023                 2022

   Gaji, upah dan kesejahteraan karyawan             499,521           453,731    Salaries, wages and employee benefits
   Pemasaran dan promosi                             199,373            60,860                  Marketing and promotion
   Biaya angkut penjualan                            191,683           189,021                                Freight out
   Penyusutan (Catatan 11 dan 15)                    142,764           134,920            Depreciation (Notes 11 dan 15)
   Komisi penjualan                                   63,125            62,907                         Sales commission
   Perjalanan dinas                                   52,397            44,834                           Business travel
   Bahan bakar                                        29,483            25,244                                      Fuel
   Percetakan                                         27,337            24,265                                   Printing
   Pemeliharaan                                       18,506            18,927                              Maintenance
   Lain-lain                                          16,048            12,316                                    Others

   Total                                        1,240,237             1,027,025                                     Total
Page 254
                                               PT AVIA AVIAN Tbk
                                      DAN ENTITAS ANAK/AND SUBSIDIARIES

                                              Lampiran 5/70 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                           NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                                FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                                31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                         (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                         unless otherwise stated)


26. BEBAN OPERASI (lanjutan)                                  26. OPERATING EXPENSES (continued)

   Rincian beban umum dan administrasi adalah                      The details of general and administrative expenses
   sebagai berikut:                                                are as follows:

                                                  2023                 2022

   Gaji, upah dan kesejahteraan karyawan             72,625                   70,009 Salaries, wages and employee benefits
   Penyusutan (Catatan 11 dan 15)                    37,703                   35,808         Depreciation (Notes 11 and 15)
   Perlengkapan kantor                               22,596                   17,856                          Office supplies
   Asuransi                                          17,387                   15,059                               Insurance
   Utilitas                                          13,662                   13,752                                  Utilities
   Perjalanan dinas                                  11,927                    9,971                          Business travel
   Jasa tenaga ahli                                   9,908                   12,204                       Professional fees
   Perizinan dan legalitas                            8,524                    8,135                       Permits and legal
   Amortisasi aset takberwujud                        5,447                    5,288        Amortisation of intangible assets
   Pelatihan                                          4,994                    4,470                                 Training
   Sumbangan dan jamuan                               4,508                    3,861            Donation and entertainment
   Kebersihan dan keamanan                            4,368                    3,619                   Cleaning and security
   Lain-lain                                         12,441                   14,590                                   Others

   Total                                            226,090                214,622                                        Total


27. PENGHASILAN/(BEBAN) LAIN-LAIN, NETO                       27. OTHER INCOME/(EXPENSES), NET

   Rincian penghasilan/(beban) lain-lain, neto adalah              The details of other income/(expenses), net are as
   sebagai berikut:                                                follows:

                                                  2023                 2022

   Rugi penjualan investasi                                                                         Loss on sale of investment
     pada surat utang negara                         (30,857)              (19,554)                     in government bonds
   Penjualan barang afalan                             7,097                 8,173                                 Sale of scrap
   Keuntungan pelepasan aset tetap                                                             Gain on disposal of fixed assets
     (Catatan 11)                                        5,052                 8,445                                 (Note 11)
   Kenaikan/(penurunan) nilai properti                                                     Increase/(decrease) in fair value of
     investasi (Catatan 10)                              4,127                (9,654)        investment properties (Note 10)
   Pendapatan sewa gedung kantor                                                                   Office and factory buildings
     dan pabrik                                          4,172                 3,932                             rental income
   Beban operasional atas gedung yang                                                          Operational expenses of leased
     disewakan (Catatan 10)                              (4,360)              (2,574)                       building (Note 10)
   Keuntungan/(kerugian) selisih kurs, neto               1,070               (7,177)     Gain/(loss) on foreign exchange, net
   Lain-lain, neto                                        5,753                2,070                                 Others, net

   Total                                                 (7,946)           (16,339)                                       Total


28. PENGHASILAN KEUANGAN                                      28. FINANCE INCOME

                                                  2023                 2022

   Bunga dari investasi pada                                                                         Interest from investment in
     surat utang negara                             149,646               249,970                          government bonds
   Bunga dari deposito                              124,670                28,245                    Interest from time deposits
   Bunga dari rekening giro                          11,943                15,507                 Interest from current account

   Total                                            286,259               293,722                                         Total
Page 255
                                                PT AVIA AVIAN Tbk
                                       DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                      Lampiran 5/71 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                                             NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                                                  FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                                                  31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                                           (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                                           unless otherwise stated)


29. BEBAN KEUANGAN                                                        29. FINANCE COSTS

                                                              2023                      2022

   Beban bunga atas liabilitas sewa                                                                            Interest expense on lease liabilities
     (Catatan 15)                                                    3,724                     5,929                                  (Note 15)
   Beban bunga pinjaman bank                                           353                       534               Interest expense on bank loans

   Total                                                             4,077                     6,463                                            Total


30. ASET ATAU LIABILITAS MONETER BERSIH                                   30. NET MONETARY ASSETS AND LIABILITIES
    DALAM MATA UANG ASING                                                     DENOMINATED IN FOREIGN CURRENCIES

   Aset dan liabilitas keuangan Grup dalam mata uang                            The Group’s financial assets and liabilities in foreign
   asing adalah sebagai berikut:                                                currencies are as follows:
                                                       2023                                    2022
                                      Dalam mata                                Dalam mata
                                      uang asing/                               uang asing/
                         Mata uang/    In original       Jumlah setara/          In original          Jumlah setara/
                         Currency     currencies          Equivalent to         currencies             Equivalent to

   Aset moneter                                                                                                                       Monetary assets
                         Dolar AS/
    Kas dan setara kas   US Dollar            2,452                      38              32,534                   511       Cash and cash equivalents

   Liabilitas moneter                                                                                                               Monetary liabilities
                         Dolar AS/
    Utang usaha          US Dollar       (4,874,620)                 (75,147)         (3,114,064)              (48,987)               Trade payables
                           CNY          (10,090,439)                 (21,896)        (18,906,500)              (42,674)
                           Euro            (982,769)                 (16,845)                  -                     -
                           SGD             (175,441)                  (2,055)           (169,182)               (1,973)

                                                                 (115,943)                                     (93,634)
   Liabilitas                                                                                                                                  Monetary
    moneter, neto                                                (115,905)                                     (93,123)                liabilities, net




31. MANAJEMEN RISIKO KEUANGAN                                             31. FINANCIAL RISK MANAGEMENT

   Aktivitas Grup rentan terhadap berbagai risiko                               The Group’s activities are exposed to a variety of
   keuangan: risiko pasar (termasuk risiko nilai mata                           financial risks: market risk (including foreign
   uang asing, risiko harga, dan risiko tingkat suku                            exchange risk, price risk and interest rate risk),
   bunga), risiko kredit dan risiko likuiditas. Program                         credit risk and liquidity risk. The Group’s overall risk
   manajemen risiko Grup secara keseluruhan                                     management         programme       focuses   on      the
   dipusatkan pada pasar keuangan yang tidak dapat                              unpredictability of financial markets and seeks to
   diprediksi dan Grup berusaha untuk memperkecil                               minimise potential adverse effects on the Group’s
   efek yang berpotensi merugikan kinerja keuangan                              financial performance. Financial risk management is
   Grup. Fungsi manajemen risiko keuangan                                       carried out under the monitoring of the Directors.
   dijalankan dalam pengawasan Direksi.

   Faktor-faktor risiko keuangan                                                Financial risk factors

   a.    Risiko pasar                                                           a.      Market risk

         Risiko nilai tukar mata uang asing                                             Foreign exchange risk

         Mata uang fungsional Perusahaan adalah                                         The Company’s functional currency is Rupiah.
         Rupiah. Grup menghadapi risiko nilai tukar                                     The Group faces foreign exchange risk as a
         mata uang asing karena sebagian pembelian                                      portion of its purchases and operating
         dan biaya operasionalnya dalam mata uang                                       expenses are denominated in foreign
         asing. Penurunan/penguatan nilai tukar mata                                    currencies. The weakening/ strengthening of
         uang asing terhadap Rupiah, mengakibatkan                                      foreign currency exchange rate against Rupiah,
         utang dan biaya operasional dalam Rupiah                                       will cause payable and operating expenses in
         menurun/meningkat.                                                             Rupiah decrease/increase.
Page 256
                                             PT AVIA AVIAN Tbk
                                    DAN ENTITAS ANAK/AND SUBSIDIARIES

                                              Lampiran 5/72 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                     NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                          FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                          31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                   (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                   unless otherwise stated)


31. MANAJEMEN RISIKO KEUANGAN (lanjutan)                     31. FINANCIAL RISK MANAGEMENT (continued)

   Faktor-faktor risiko keuangan (lanjutan)                     Financial risk factors (continued)

   a.   Risiko pasar (lanjutan)                                 a.   Market risk (continued)

        Risiko nilai tukar mata uang asing (lanjutan)                Foreign exchange risk (continued)

        Analisis sensitivitas untuk risiko nilai mata uang           Sensitivity analysis for foreign currency risk
        asing

        Pada tanggal 31 Desember 2023, jika nilai tukar              As at 31 December 2023, had the Rupiah
        Rupiah terhadap Dolar AS menguat/melemah                     exchange rate strengthened/weakened by 10%
        sebesar 10%, dengan semua variabel lain                      against US Dollar, with all other variables held
        konstan, maka laba setelah pajak untuk tahun                 constant, post-tax profit for the year then ended
        yang berakhir pada tanggal tersebut akan                     would have been Rp5,859 (2022: Rp3,781)
        meningkat/menurun sebesar Rp5.859 (2022:                     higher/lower. The impact on equity would have
        Rp3.781). Dampak terhadap ekuitas akan sama                  been the same as the impact on profit for the
        dengan dampak pada laba tahun berjalan.                      year.

        Risiko harga                                                 Price risk

        Grup rentan terhadap risiko harga efek utang                 The Group is exposed to debt securities price
        karena      investasi   yang    dimiliki  Grup               risk because the investments held by the
        diklasifikasikan dalam laporan posisi keuangan               Group are classified on the consolidated
        konsolidasian sebagai diukur pada nilai wajar                statement of financial position at fair value
        melalui penghasilan komprehensif lain dan nilai              through other comprehensive income and fair
        wajar melalui laba rugi. Grup tidak rentan                   value through profit or loss. The Group is not
        terhadap risiko harga komoditas.                             exposed to commodity price risk.

        Untuk mengelola risiko harga yang timbul dari                To manage price risk arising from investments
        investasi pada efek utang, Grup melakukan                    in debt securities, the Group performs an
        analisis terkait besarnya bunga kupon yang                   analysis of the number of coupon bonds
        ditawarkan dengan tingkat imbal hasil umum                   offered and the required rate of return which is
        yang diharapkan oleh pasar.                                  generally expected by the market.

        Analisis sensitivitas untuk risiko harga                     Sensitivity analysis for price risk

        Pada tanggal 31 Desember 2023, apabila                       As at 31 December 2023, if market required
        tingkat imbal hasil secara umum yang                         rate of return increased/decreased for 5%,
        diharapkan oleh pasar bergerak naik/turun 5%,                post-tax profit for the year then ended would
        maka laba setelah pajak untuk tahun yang                     increased/decreased by Rp150,847 (2022:
        berakhir pada tanggal tersebut akan naik/turun               Rp193,751) as a result of gains/(losses) on
        sebesar Rp150.847 (2022: Rp193.751) sebagai                  investments in government bonds and mutual
        akibat keuntungan/(kerugian) atas investasi                  funds classified as at FVOCI and FVTPL. The
        pada surat utang negara dan reksa dana yang                  impact on equity would have been the same as
        diklasifikasikan sebagai FVOCI dan FVTPL.                    the impact on the consolidated profit or loss
        Dampak terhadap ekuitas akan sama dengan                     and other comprehensive income for the year.
        dampak pada laba rugi dan penghasilan
        komprehensif lain konsolidasian tahun berjalan.

        Risiko tingkat suku bunga                                    Interest rate risk

        Risiko suku bunga dari kas di bank, deposito                 The interest rate risk from cash in banks, time
        berjangka, dan investasi jangka pendek tidak                 deposits and short-term investments is not
        signifikan. Investasi pada surat utang negara,               significant. Investment in government bonds,
        pinjaman bank dan liabilitas sewa yang memiliki              bank loans and lease liabilities which bear fixed
        tingkat suku bunga tetap mengekspos Grup                     interest rates expose the Group to fair value
        terhadap risiko nilai wajar suku bunga.                      interest rate risk.
Page 257
                                               PT AVIA AVIAN Tbk
                                      DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                 Lampiran 5/73 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                        NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                             FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                             31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                      (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                      unless otherwise stated)


31. MANAJEMEN RISIKO KEUANGAN (lanjutan)                     31. FINANCIAL RISK MANAGEMENT (continued)

   Faktor-faktor risiko keuangan (lanjutan)                       Financial risk factors (continued)

   b.   Risiko kredit                                             b.   Credit risk

        Grup terekspos risiko kredit dari kas di bank,                 The Group is exposed to credit risk from cash
        deposito berjangka, kas di bank dan deposito                   in bank, time deposits, restricted cash in bank
        yang dibatasi penggunaannya, investasi jangka                  and time deposits, short-term investments,
        pendek, investasi pada surat utang negara,                     investment in government bond, investment in
        investasi reksa dana, piutang usaha, dan                       mutual funds, trade receivables and other
        piutang lain-lain dari pihak ketiga.                           receivables from third parties.

        Semua kas di bank, deposito berjangka, kas                     All the cash in bank, time deposits, restricted
        dan deposito yang dibatasi penggunaannya                       cash in banks and short-term investments are
        ditempatkan di bank asing dan lokal yang                       placed in foreign and local banks with good
        memiliki reputasi dan peringkat yang baik.                     reputation and rating. Based on management’s
        Berdasarkan      penilaian manajemen     atas                  assessment of the expected credit losses
        kerugian kredit ekspektasian berdasarkan                       under PSAK No. 71, including assessing
        PSAK No. 71, termasuk penilaian peringkat                      banks’ credit rating, management concluded
        kredit bank, manajemen menyimpulkan bahwa                      that the credit risk in relation to its cash in
        risiko kredit terkait dengan kas di bank dan                   banks and time deposits is not significant.
        deposito adalah tidak signifikan.

        Kualitas kredit dari aset keuangan pada nilai                  The credit quality of financial assets at FVTPL
        wajar melalui laba rugi dan penghasilan                        and FVOCI in listed securities can be assessed
        komprehensif lain yang diperdagangkan di                       by reference to external credit ratings as
        bursa yang dapat diambil dari referensi                        follows:
        peringkat kredit eksternal adalah sebagai
        berikut:

                                                     2023              2022

        Dengan pihak yang memiliki peringkat                                                  Counterparties with external
          kredit eksternal (Fitch, Moody’s dan                                              credit ratings (Fitch, Moody’s
          Pefindo):                                                                                          and Pefindo):
          BBB / Baa2                                  2,993,887         3,875,023                              BBB / Baa2
          idA                                            20,200                 -                                      idA

          Total                                       3,014,087         3,875,023                                  Total

        Risiko kredit untuk piutang bunga dari investasi               Credit risk from interest receivables of
        pada surat utang negara juga mengacu pada                      investment in government bonds also refers to
        referensi peringkat kredit eksternal pihak-pihak               the external credit ratings for each individual
        dalam kontrak.                                                 counterparty.

        Manajemen yakin akan kemampuannya untuk                        Management is confident in its ability to
        terus mengendalikan dan mempertahankan                         continue to control and maintain minimal
        eksposur yang minimal terhadap risiko kredit                   exposure to credit risk from trade receivables,
        dari piutang usaha, mengingat Grup memiliki                    since the Group has clear policies on the
        kebijakan yang jelas dalam pemilihan                           selection of customers and historically low
        pelanggan dan secara historis mempunyai                        levels of bad debts in trade receivables.
        tingkat yang rendah untuk piutang usaha yang
        bermasalah.

        Dalam pemilihan pelanggan, Grup menerapkan                     In selecting its customers, the Group applies
        kebijakan persetujuan atas kontrak penjualan                   prudent acceptance policies of new sales
        berdasarkan    prinsip   kehati-hatian serta                   contracts and perform ongoing monitoring as
        melakukan pengelolaan atas piutangnya.                         well as managing the collection of its
        Sebagai bagian dari proses persetujuan                         receivables. As part of the approval process,
        tersebut, reputasi dan catatan historis                        the customer’s reputation and track record are
        pelanggan menjadi bahan pertimbangan.                          taken into consideration.
Page 258
                                              PT AVIA AVIAN Tbk
                                     DAN ENTITAS ANAK/AND SUBSIDIARIES

                                              Lampiran 5/74 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                        NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                             FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                             31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                      (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                      unless otherwise stated)


31. MANAJEMEN RISIKO KEUANGAN (lanjutan)                     31. FINANCIAL RISK MANAGEMENT (continued)

   Faktor-faktor risiko keuangan (lanjutan)                        Financial risk factors (continued)

   b.   Risiko kredit (lanjutan)                                   b.   Credit risk (continued)

        Berdasarkan     penilaian manajemen       atas                  Based on management’s assessment of the
        kerugian kredit ekspektasian berdasarkan                        expected credit losses under PSAK No. 71, the
        PSAK No. 71, manajemen Grup berkeyakinan                        Group’s management believes that the
        bahwa cadangan kerugian penurunan nilai                         allowance for impairment losses of trade and
        piutang usaha dan piutang lain-lain telah                       other receivables is sufficient to cover possible
        memadai      untuk    menutup     kemungkinan                   losses from uncollectible receivables. Refer to
        kerugian atas tidak tertagihnya piutang usaha.                  Note 5 for detailed receivables aging and
        Lihat Catatan 5 untuk rincian umur piutang dan                  allowance for impairment losses of trade
        cadangan kerugian penurunan nilai piutang                       receivables.
        usaha.

   c.   Risiko likuiditas                                          c.   Liquidity risk

        Risiko likuiditas adalah risiko bahwa Grup akan                 Liquidity risk is the risk that the Group will have
        mengalami kesulitan dalam membayar liabilitas                   difficulties in paying its financial liabilities. The
        keuangannya. Grup mengelola risiko likuiditas                   Group manages its liquidity risk by maintaining
        dengan mempertahankan kas dan setara kas                        an adequate level of cash and cash equivalents
        yang cukup dalam memenuhi kebutuhan kas                         to cover its short-term cash requirement. The
        jangka pendeknya. Grup juga secara rutin                        Group also evaluates the projected and actual
        mengevaluasi proyeksi arus kas dan arus kas                     cash flows regularly, as well as the maturity
        aktual, serta jadwal tanggal jatuh tempo aset                   date schedule of its financial assets and
        dan liabilitas keuangan.                                        liabilities.

        Tabel di bawah merupakan analisis jatuh tempo                   The following table analyses the Group’s
        liabilitas keuangan Grup dalam rentang waktu                    financial liabilities by relevant maturity
        yang menunjukkan jatuh tempo kontraktual                        groupings based on their contractual maturities
        untuk semua liabilitas keuangan untuk                           for an understanding of the timing of the cash
        pemahaman terhadap arus kas. Jumlah yang                        flows. The amounts disclosed in the table are
        diungkapkan dalam tabel adalah arus kas                         the contractual undiscounted cash flows
        kontraktual yang tidak terdiskonto (termasuk                    (including principal and interest payments).
        pembayaran pokok dan bunga).

                                      Di bawah                       Lebih dari
                                    satu tahun/      1-5 tahun/    5 tahun/More
                                   Below one year      years       than 5 years          Total

        31 Desember 2023                                                                                31 December 2023
        Pinjaman bank                       5,319              -                -             5,319             Bank loans
        Utang usaha                       650,658              -                -           650,658         Trade payables
        Utang lain-lain                    30,571              -                -            30,571         Other payables
        Beban akrual                      301,835              -                -           301,835      Accrued expenses
        Uang jaminan pelanggan              2,100              -                -             2,100    Customers guarantee
        Liabilitas sewa                    11,910         13,709            9,484            35,103         Lease liabilities

        Total                            1,002,393        13,709            9,484         1,025,586                    Total

                                      Di bawah                       Lebih dari
                                    satu tahun/      1-5 tahun/    5 tahun/More
                                   Below one year      years       than 5 years          Total

        31 Desember 2022                                                                                31 December 2022
        Pinjaman bank                       7,493              -                -             7,493             Bank loans
        Utang usaha                       573,917              -                -           573,917         Trade payables
        Utang lain-lain                    12,899              -                -            12,899         Other payables
        Beban akrual                      257,448              -                -           257,448      Accrued expenses
        Uang jaminan pelanggan              3,100              -                -             3,100    Customers guarantee
        Liabilitas sewa                    52,118         23,594            3,360            79,072         Lease liabilities

        Total                             906,975         23,594            3,360           933,929                    Total
Page 259
                                             PT AVIA AVIAN Tbk
                                    DAN ENTITAS ANAK/AND SUBSIDIARIES

                                               Lampiran 5/75 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                      NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                           FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                           31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                    (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                    unless otherwise stated)


31. MANAJEMEN RISIKO KEUANGAN (lanjutan)                      31. FINANCIAL RISK MANAGEMENT (continued)

   Pengukuran nilai wajar                                        Fair value measurement

   Nilai wajar aset dan liabilitas keuangan diestimasi           The fair value of financial assets and financial
   untuk keperluan pengakuan dan pengukuran atau                 liabilities must be estimated for recognition and
   untuk keperluan pengungkapan.                                 measurement or for disclosure purposes.

   PSAK No. 68, “Pengukuran Nilai Wajar”                         PSAK No. 68, “Fair Value Measurement” requires
   mensyaratkan pengungkapan atas pengukuran nilai               disclosure of fair value measurements by level of
   wajar dengan tingkat hierarki nilai wajar sebagai             the following fair value measurement hierarchy:
   berikut:
   (a) harga kuotasian (tidak disesuaikan) dalam                 (a) quoted prices (unadjusted) in active markets for
        pasar aktif untuk aset atau liabilitas yang identik          identical assets or liabilities (level 1),
        (tingkat 1),
   (b) input selain harga kuotasian yang termasuk                (b) inputs other than quoted prices included within
        dalam tingkat 1 yang dapat diobservasi untuk                 level 1 that are observable for the asset or
        aset atau liabilitas, baik secara langsung                   liability, either directly (as prices) or indirectly
        (misalnya harga) atau secara tidak langsung                  (derived from prices) (level 2), and
        (misalnya derivasi dari harga) (tingkat 2), dan
   (c) input untuk aset atau liabilitas yang bukan               (c) inputs for the asset or liability that are not
        berdasarkan data pasar yang dapat diobservasi                based     on    observable       market   data
        (input yang tidak dapat diobservasi) (tingkat 3).            (unobservable inputs) (level 3).

   Nilai wajar instrumen keuangan yang tidak                     The fair value of financial instruments that are not
   diperdagangkan di pasar aktif ditentukan dengan               traded in an active market is determined using
   menggunakan teknik penilaian tertentu. Teknik                 valuation techniques. These valuation techniques
   tersebut menggunakan data pasar yang dapat                    maximise the use of observable market data where
   diobservasi sepanjang tersedia dan seminimal                  it is available and rely as little as possible on
   mungkin mengacu pada estimasi. Apabila seluruh                estimates. If all significant inputs required to fair
   input signifikan atas nilai wajar dapat diobservasi,          value an instrument are observable, the instrument
   instrumen ini termasuk dalam tingkat 2.                       is included in level 2.

   Semua instrumen keuangan, selain investasi pada               All financial instruments, other than investment in
   surat utang negara yang disajikan pada nilai wajar            government bonds which is presented at fair value
   melalui penghasilan komprehensif lain dan investasi           through other comprehensive income and
   reksa dana yang disajikan pada nilai wajar melalui            investment in mutual funds which is presented at
   laba rugi, yang disajikan di dalam laporan posisi             fair value through profit or loss, which were
   keuangan konsolidasian dicatat pada biaya                     presented in the consolidated statement of financial
   perolehan    diamortisasi.   Metode-metode     dan            position are carried at amortised cost. The following
   asumsi-asumsi di bawah ini digunakan untuk                    methods and assumptions were used to estimate
   mengestimasi nilai wajar untuk masing-masing kelas            the fair value of each class of financial instruments:
   instrumen keuangan:

   a.   Aset keuangan lancar             dan     liabilitas      a.   Current financial assets and liabilities
        keuangan jangka pendek

        Manajemen menetapkan bahwa nilai tercatat                     Management has determined that the carrying
        kas dan setara kas, bank dan deposito yang                    amounts of cash and cash equivalents,
        dibatasi penggunaannya, investasi jangka                      restricted cash in bank and deposits, short-term
        pendek, piutang usaha, piutang lain-lain dari                 investments,      trade    receivables,     other
        pihak ketiga, pinjaman bank, utang usaha,                     receivables from third parties, bank loans, trade
        utang lain-lain, beban akrual, dan uang jaminan               payables, other payables, accrued expenses
        pelanggan kurang lebih sebesar nilai wajarnya                 and      customer      guarantee      reasonably
        karena instrumen keuangan tersebut bersifat                   approximate their fair values because they are
        jangka pendek.                                                short-term in nature.

        Investasi pada surat utang negara dan reksa                   Investment in government bonds and mutual
        dana merupakan aset Grup yang nilai wajarnya                  funds represent the Group’s assets for which
        didasarkan pada kuotasi harga pasar terakhir                  the fair value is stated based on the last quoted
        pada tanggal 31 Desember 2023 dan 2022                        market prices as at 31 December 2023 and
        (tingkat 1).                                                  2022 (level 1).
Page 260
                                          PT AVIA AVIAN Tbk
                                 DAN ENTITAS ANAK/AND SUBSIDIARIES

                                          Lampiran 5/76 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                 NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                      FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                      31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                               (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                               unless otherwise stated)


31. MANAJEMEN RISIKO KEUANGAN (lanjutan)                 31. FINANCIAL RISK MANAGEMENT (continued)

   Pengukuran nilai wajar (lanjutan)                        Fair value measurement (continued)

   b.   Aset tidak lancar dan liabilitas keuangan           b.   Non-current assets and long-term financial
        jangka panjang                                           liabilities

        Nilai wajar dari liabilitas keuangan jangka              The fair values of non-current liabilities, such as
        panjang, seperti liabilitas sewa, mendekati              lease liabilities, approximate their carrying
        perkiraan nilai tercatatnya berdasarkan metode           value based on valuation under the discounted
        penilaian menggunakan metode arus kas                    cash flows method using the discount rate that
        diskontoan dengan tingkat diskon yang tidak              is not significantly different from the market
        berbeda signifikan dengan tingkat diskon pasar           discount rate (level 3).
        (tingkat 3).

   Selain yang di atas, Grup tidak memiliki aset atau       Other than the above, the Group did not have any
   liabilitas keuangan lainnya yang diukur berdasarkan      financial assets or liabilities that are measured
   nilai wajar.                                             based on fair value.

   Untuk    tahun-tahun    yang berakhir pada               For the years ended 31 December 2023 and 2022,
   31 Desember 2023 dan 2022 tidak terdapat                 there were no transfers between levels.
   pengalihan antar level.

   Pengelolaan modal                                        Capital management

   Tujuan Grup dalam pengelolaan permodalan adalah          The Group’s objectives when managing capital are
   untuk mempertahankan kelangsungan usaha Grup             to safeguard the Group’s ability to continue as a
   serta memaksimalkan manfaat bagi pemegang                going concern while seeking to maximise benefits to
   saham dan pemangku kepentingan lainnya.                  shareholders and other stakeholders.

   Grup    mengelola  struktur permodalan     dan           The Group manages its capital structure and makes
   melakukan penyesuaian, berdasarkan perubahan             adjustments to it, in light of changes in economic
   kondisi  ekonomi.    Untuk  memelihara     dan           conditions. To maintain or adjust the capital
   menyesuaikan struktur permodalan, Grup dapat             structure, the Group may adjust the dividend
   menyesuaikan    pembayaran   dividen   kepada            payment to shareholders, issue new shares or raise
   pemegang saham, menerbitkan saham baru atau              debt financing. No changes were made in the
   mengusahakan pendanaan melalui pinjaman. Tidak           objectives, policies or processes for the years
   ada perubahan atas tujuan, kebijakan maupun              ended 31 December 2023 and 2022.
   proses untuk tahun yang berakhir pada tanggal
   31 Desember 2023 dan 2022.

   Kebijakan Grup adalah mempertahankan struktur            The Group’s policy is to maintain a healthy capital
   permodalan yang sehat untuk mengamankan akses            structure in order to secure access to finance at a
   terhadap pendanaan pada biaya yang wajar.                reasonable cost.
Page 261
                                                PT AVIA AVIAN Tbk
                                       DAN ENTITAS ANAK/AND SUBSIDIARIES

                                                       Lampiran 5/77 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                                   NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                                        FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                                        31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                                 (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                                 unless otherwise stated)


32. TAMBAHAN INFORMASI ARUS KAS                                        32. SUPPLEMENTARY CASH FLOW INFORMATION

   a.   Aktivitas nonkas                                                    a.   Non-cash activities

        Aktivitas nonkas yang mendukung laporan arus                             Non-cash activities supporting the statement of
        kas pada setiap tanggal pelaporan adalah                                 cash flows at each reporting dates are as
        sebagai berikut:                                                         follows:

                                                           2023                  2022

        Penambahan aset hak-guna                                                                          Addition of right-of-use assets
          melalui liabilitas sewa                                11,993               29,498                    through lease liabilities
        Penambahan aset tetap melalui                                                                   Addition of fixed assets through
          reklasifikasi uang muka                                                                    reclassification from payment for
          pembelian aset tetap                                    7,767                 5,233                 purchase of fixed assets
        Penambahan aset tetap melalui                                                                   Addition of fixed assets through
          utang usaha                                             7,864                 9,431                            trade payables
        Reklasifikasi aset tetap ke aset                                                                 Reclassification of fixed assets
          takberwujud                                                   -             17,748                        to intangible assets

   b.   Rekonsiliasi utang neto                                             b.   Net debt reconciliation
                                    Kas/cerukan/
                                       Cash/            Liabilitas sewa/    Pinjaman bank/
                                   bank overdraft       Lease liabilities     Bank loans          Total

        Saldo per                                                                                                            Balance as at
          1 Januari 2022                   1,288,214             (69,409)             (671)        1,218,134             1 January 2022

        Arus kas                            875,277               25,374                671          901,322                    Cash flows
        Tambahan liabilitas sewa                  -              (29,498)                 -          (29,498)    Addition of lease liabilities

        Saldo per                                                                                                          Balance as at
           31 Desember 2022                2,163,491             (73,533)                 -        2,089,958         31 December 2022

        Arus kas                            (938,169)             58,836                  -         (879,333)                   Cash flows
        Tambahan liabilitas sewa                   -             (11,993)                 -          (11,993)    Addition of lease liabilities

        Saldo per                                                                                                          Balance as at
           31 Desember 2023                1,225,322             (26,690)                 -        1,198,632         31 December 2023



33. KOMITMEN                                                           33. COMMITMENTS

   Pengeluaran modal yang telah diperjanjikan pada                          Capital expenditure contracted as at 31 December
   tanggal 31 Desember 2023 namun belum diakui                              2023 but not yet recognised as liabilities amounted
   sebagai kewajiban adalah sebesar Rp74.178.                               to Rp74,178.
Page 262
                                           PT AVIA AVIAN Tbk
                                  DAN ENTITAS ANAK/AND SUBSIDIARIES

                                            Lampiran 5/78 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                               NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                    FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                    31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                             (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                             unless otherwise stated)


34. PELAPORAN SEGMEN                                    34. SEGMENT REPORTING

   Manajemen telah menentukan segmen operasi                 Management has determined the operating
   berdasarkan laporan yang ditelaah oleh Direksi,           segments based on the reports reviewed by the
   yang telah diidentifikasikan sebagai pengambil            Directors, who has been identified as the Group’s
   keputusan operasional utama Grup (”CODM”) dan             chief operating decision maker (“CODM”) and made
   yang mengambil keputusan strategis. Grup                  strategic decisions. The Group determines the
   menentukan segmen operasi menurut kelompok                operating segment by group of products.
   produk yang dijual. Grup menentukan segmen
   operasi menurut kelompok produk.

   Informasi segmen yang diberikan kepada Direksi            The segment information provided to the Directors
   untuk segmen dilaporkan adalah sebagai berikut:           for the reportable segments is as follows:

                                                        2023
                                    Solusi            Barang
                                  arsitektur/        dagangan/
                                 Architectural        Trading
                                   solution            goods              Total

   Pendapatan neto                     5,618,025         1,398,857          7,016,882                 Net revenues

   Beban pokok penjualan              (2,686,054)        (1,147,492)        (3,833,546)          Cost of goods sold

   Laba bruto                          2,931,971           251,365          3,183,336                 Gross profit

   Beban penjualan                               -                -         (1,240,237)         Selling expenses
   Beban umum                                                                          General and administrative
    dan administrasi                             -                -          (226,090)                expenses
   Penghasilan keuangan                          -                -           286,259            Finance income
   Beban keuangan                                -                -            (4,077)             Finance costs
   Bagian atas laba                                                                       Share of profit of a joint
    ventura bersama                              -                -               898                   venture
   Penghasilan/(beban)                                                                             Other income/
    lain-lain, neto                              -                -            (7,946)         (expenses), net


   Laba sebelum                                                                              Profit before income
   pajak penghasilan                             -                -         1,992,143               tax expense

   Beban pajak penghasilan                       -                -          (349,047)         Income tax expense

   Laba tahun berjalan                           -                -         1,643,096            Profit for the year

                                                                                                   Other segment
   Informasi segmen lainnya                                                                           information
   Belanja modal yang tidak                                                                              Unallocated
     dapat dialokasikan                          -                -           215,723        capital expenditures
   Beban depresiasi dan                                                                                  Unallocated
     amortisasi yang tidak                                                                      depreciation and
     dapat dialokasikan                          -                -           218,794      amortisation expenses

   Aset dan liabilitas                                                                       Assets and liabilities
   Aset yang tidak dapat
    dialokasikan                                 -                -        11,166,987           Unallocated assets

   Aset Grup                                     -                -        11,166,987         The Group’s assets

   Liabilitas yang tidak dapat
     dialokasikan                                -                -         1,245,498         Unallocated liabilities

   Liabilitas Grup                               -                -         1,245,498       The Group’s liabilities
Page 263
                                           PT AVIA AVIAN Tbk
                                  DAN ENTITAS ANAK/AND SUBSIDIARIES

                                            Lampiran 5/79 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                                              NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                                   FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                                   31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                                            (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                                            unless otherwise stated)


34. PELAPORAN SEGMEN (lanjutan)                                34. SEGMENT REPORTING (continued)

   Informasi segmen yang diberikan kepada Direksi                    The segment information provided to the Directors
   untuk segmen dilaporkan adalah sebagai berikut:                   for the reportable segments is as follows:
   (lanjutan)                                                        (continued)

                                                               2022
                                    Solusi                   Barang
                                  arsitektur/               dagangan/
                                 Architectural               Trading
                                   solution                   goods                   Total

   Pendapatan neto                     5,384,019                  1,310,152                6,694,171                 Net revenues

   Beban pokok penjualan              (2,893,411)              (1,083,360)                (3,976,771)           Cost of goods sold

   Laba bruto                          2,490,608                   226,792                 2,717,400                  Gross profit

   Beban penjualan                               -                        -               (1,027,025)            Selling expenses
   Beban umum                                                                                           General and administrative
    dan administrasi                             -                        -                 (214,622)                  expenses
   Penghasilan keuangan                          -                        -                  293,722              Finance income
   Beban keuangan                                -                        -                   (6,463)               Finance costs
   Bagian atas kerugian                                                                                    Share of loss of a joint
    ventura bersama                              -                        -                   (1,426)                    venture
   Penghasilan/(beban)                                                                                              Other income/
    lain-lain, neto                              -                        -                  (16,339)            (expenses), net

   Laba sebelum                                                                                              Profit before income
   pajak penghasilan                             -                        -                1,745,247                tax expense

   Beban pajak penghasilan                       -                        -                 (344,882)         Income tax expense

   Laba tahun berjalan                           -                        -                1,400,365            Profit for the year

                                                                                                                  Other segment
   Informasi segmen lainnya                                                                                         information
   Belanja modal yang tidak                                                                                            Unallocated
     dapat dialokasikan                          -                        -                 191,490         capital expenditures
   Beban depresiasi dan                                                                                                Unallocated
     amortisasi yang tidak                                                                                     depreciation and
     dapat dialokasikan                          -                        -                 204,756       amortisation expenses

   Aset dan liabilitas                                                                                      Assets and liabilities
   Aset yang tidak dapat
    dialokasikan                                 -                        -               10,792,122           Unallocated assets

   Aset Grup                                     -                        -               10,792,122          The Group’s assets

   Liabilitas yang tidak dapat
     dialokasikan                                -                        -                1,217,237         Unallocated liabilities

   Liabilitas Grup                               -                        -                1,217,237       The Group’s liabilities


   SEGMEN GEOGRAFIS                                                                             GEOGRAPHICAL SEGMENT

                                                     2023                2022

   Pendapatan neto                                                                                                  Net revenues
   Lokal                                              7,016,882               6,694,171                                     Local
Page 264
                                         PT AVIA AVIAN Tbk
                                DAN ENTITAS ANAK/AND SUBSIDIARIES

                                         Lampiran 5/80 Schedule

CATATAN ATAS LAPORAN KEUANGAN                                              NOTES TO THE CONSOLIDATED
KONSOLIDASIAN                                                                   FINANCIAL STATEMENTS
31 DESEMBER 2023 DAN 2022                                                   31 DECEMBER 2023 AND 2022
(Dinyatakan dalam jutaan Rupiah,                                            (Expressed in millions of Rupiah,
kecuali dinyatakan lain)                                                            unless otherwise stated)


34. PELAPORAN SEGMEN (lanjutan)                        34. SEGMENT REPORTING (continued)

   Manajemen memonitor hasil dari kegiatan segmen         Management monitors the operating results of its
   dilaporkan secara terpisah dengan tujuan untuk         reportable segments separately for the purpose of
   mengambil keputusan mengenai alokasi atas              making decisions about resource allocation and
   sumber daya dan penilaian kinerja. Kinerja segmen      performance assessment. Segment performance is
   dievaluasi berdasarkan laba bruto. Beban               evaluated based on gross margin. The Group’s
   penjualan, beban umum dan administrasi, beban          selling expenses, general and administrative
   dan penghasilan keuangan, penghasilan/(beban)          expenses, finance income and costs, other
   lain-lain, neto, bagian dari laba/(rugi) ventura       income/(expenses), net, share in profit/(loss) of a
   bersama dan pajak penghasilan Grup tidak               joint venture and income taxes are not included in
   termasuk dalam ukuran laba rugi yang dilaporkan        the measure of profit or loss that is reported to the
   kepada CODM sehingga tidak dialokasikan pada           CODM and therefore are not allocated to the
   segmen dilaporkan.                                     reportable segments.


35. PERISTIWA SETELAH PERIODE PELAPORAN                35. SUBSEQUENT EVENTS AFTER REPORTING
                                                           PERIOD

   Pembelian saham treasuri                               Purchase of treasury shares

   Sampai dengan tanggal laporan keuangan                 Up to the issuance date of these consolidated
   konsolidasian ini diterbitkan, Perusahaan telah        financial statements, the Company repurchased
   melakukan pembelian kembali 241.876.500 lembar         241,876,500 shares of its own ordinary shares
   saham biasa Perusahaan melalui pembelian pada          through purchases on the IDX (Note 1b). This
   BEI (Catatan 1b). Pembelian kembali saham              repurchase transaction is intended to stabilise the
   Perusahaan ini ditujukan untuk menjaga stabilitas      Company’s share price. The total amounts paid to
   harga saham Perusahaan. Jumlah pembayaran              acquire the shares were Rp128,876 (Rp488 -
   untuk mengakuisisi saham tersebut adalah sebesar       Rp600/share - full amount).
   Rp128.876 (Rp488 - Rp600/lembar saham - nilai
   penuh).
Page 265

          
Page 266
Painting a Beautiful
Picture of Indonesia

AN NUA L RE PORT


2023
www.avianbrands.com
  avianbrands
  avian.brands
  Avian Brands
  www.facebook.com/Avianbrands                 Find Avia Brands
  Linkedin/PT Avia Avian Tbk. (Avian Brands)     products here.

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Published12 Mar 2024
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Names mentioned 152 people and organisations named in the text · linked when the evidence is strong

linked org Avia Avian Tbk p.3 ×493
linked person Hermanto Tanoko · President Commissioner p.26 ×30
linked person Mohammad Noor Rachman Soejoeti · Commissioner p.29 ×19
linked person Wijono Tanoko · President Director p.30 ×23
linked person Ruslan Tanoko · President Director p.33 ×24
linked person Kurnia Hadi Sinanto · Member p.33 ×19
linked org PT Tancorp Surya Sentosa p.37 ×6
linked org PT Wahana Lancar Rejeki p.37 ×11
linked org Archipelago Investment Pte Ltd p.37 ×2
linked person Sammy TS Lalamentik · Member p.52 ×3
linked person Bobby Septian Yahya · Member p.52 ×3
linked org Jaya Sukses Makmur Sentosa Tbk p.55 ×2
linked org Sariguna Primatirta Tbk p.55 ×4
linked org Tancorp Global p.55
linked org Caturkarda Depo Bangunan Tbk p.55 ×11
linked org Penta Valent Tbk p.55 ×2
linked org Ristia Bintang p.56
linked org Nusantara Sejahtera Raya Tbk p.56 ×2
linked org Bank Central Asia Tbk p.58 ×5
linked — Credit Suisse p.59
linked org Bank CIMB Niaga Tbk. p.60 ×2
linked person Fitradewata Teramihardja · Anggota p.187
possible person Dr. Susanti S.H. · Notaris p.36 ×18
possible org PT Bursa Efek Indonesia p.56 ×4
possible — Morgan Stanley p.59
possible org Otoritas Jasa Keuangan p.61 ×6
possible person David p.67
possible person Prof. DR. Satrio p.68
unresolved org Financial Services Authority p.3 ×19
unresolved org Indonesia Stock Exchange p.13 ×24
unresolved org PT Tirtakencana p.17 ×4
unresolved org PT Tirtakencana Batamindo p.17 ×13
unresolved org Ministry of Manpower p.18 ×2
unresolved org Ministry of Environment p.18
unresolved org LRQA Limited LRQA Group Limited p.19
unresolved org LRQA Limited p.19
unresolved org PT Lloyd’s Register Indonesia p.19 ×4
unresolved org Information Security Intertek Certification Limited p.19
unresolved org Ministry of Industry p.19 ×24
unresolved person Assistant Executive · Director p.20
unresolved org 2023 Annual Report - PT Avia Avian Tbk · 61 p.29 ×3
unresolved person Indrawati Setiabudhi · Notaris p.36 ×2
unresolved org Minister of Justice p.36
unresolved org Ministry of Justice p.36
unresolved org Malang District Court p.36
unresolved org Ministry of Subsidiaries and Outsourced p.36
unresolved person Soetikno Tanoko’s p.38 ×5
unresolved org PT Tirtakencana Tatawarna p.38 ×22
unresolved person Robert p.38
unresolved org PT Walt Disney Indonesia p.39
unresolved org PT Bangun Bersama p.39 ×3
unresolved org PT Cipta Mortar p.39
unresolved org Pte Ltd p.39 ×3
unresolved org Archipelago Pte Ltd. p.39
unresolved org PT Bangun Bersama Solusindo p.39 ×7
unresolved org PT Multipro Paint Indonesia p.39 ×9
unresolved org PT Bira Industri Rejeki Agung p.39 ×2
unresolved person Soetikno VIP Pengupas Cat Tembok p.40
unresolved person Robert Christian Tanoko. Its · Director p.40 ×20
unresolved org PT Tirtakencana Tatawarna. This p.40
unresolved org PT Solusi Rumah Praktis p.40 ×5
unresolved person Liestiani Wang · Notaris p.45 ×2
unresolved org PT Tirtakencana Tatawarna. Wood Care p.47
unresolved person Fitradewata · Member p.52 ×2
unresolved person Iwan Sigit · Member p.52 ×2
unresolved person Sarwono · Member p.52
unresolved person Devyka Oktima S · Member p.52
unresolved org Pengurus ARSI p.53
unresolved org Pengurus Asosiasi Resin Sintetik Indonesia Ketua Umum p.53
unresolved person Anwar · Notaris p.55 ×11
unresolved org PT Tancorp Global Sentosa p.55
unresolved org PT Avia Avian Industri Pipa School p.55
unresolved org Indonesia Money Printing Corporation p.56
unresolved org Ristia Bintang Mahkota Sejati Tbk p.56 ×2
unresolved org PT Avia Avian Industri Pipa p.58 ×10
unresolved org PT Tirtakencana Batamindo Graduated p.58
unresolved org PT Bangun Bersama Solusindo Los Angeles p.59
unresolved org Assegaf Hamzah & Partners p.61 ×2
unresolved org PT Tiga Arga p.62
unresolved org PT Nipsea Paint p.62
unresolved org PT Tancorp p.63 ×3
unresolved org PT Wahana p.63 ×2
unresolved org Private Limited p.63
unresolved person Angelica Tanisia Jozar. COMPOSITION OF SHARE OWNERSHIP · Director p.63 ×15
unresolved org PT Sensasi Director Istana Warna Robert Christian p.63
unresolved org PT Asiapasifik p.64
unresolved org PT Jaya p.64
unresolved org PT Sensasi p.64 ×2
unresolved org PT Rukun Lie p.64
unresolved org PT Sinar Surya p.64
unresolved org PT Marco Tanoko p.64
unresolved org PT Wira p.64
unresolved org PT Voka Laju Rejeki p.64
unresolved org PT Tancorp Surya Sentosa. Meanwhile p.64
unresolved org PT Multipro Paint Solusindo p.66
unresolved org PT Tirtakencana Tatawarna Legal Basis p.67
unresolved person Operating Dyah Ambarwaty Setyoso p.67
unresolved org PT Solusi Rumah Praktis Legal Basis p.67
unresolved person Operating Anwar p.67
unresolved org PT Multipro Paint Indonesia Legal Basis p.67
unresolved person Operating Rusdi Mulyono p.67
unresolved org PT Bangun Bersama Solusindo Legal Basis p.68
unresolved person Operating Emmyra Fauzia Kariana p.68
unresolved org Tanudiredja p.68
unresolved org Annual Rintis & Rekan p.68
unresolved person Notary Dr. Susanti p.68
unresolved org PT Bima Registra p.68 ×5
unresolved org PT Solusi Rumah Praktis BBS p.71
unresolved org Pusat Statistik p.80 ×3
unresolved org Bank Indonesia p.80 ×3
unresolved org Ministry of Finance. Industry Overview Our p.80
unresolved org Ministry of Industry. Operational Overview Operational Overview p.81
unresolved org Rintis & Rekan p.81 ×4
unresolved org Bank Overdraft p.89 ×2
unresolved org PT Mitra Mulia Makmur p.93 ×3
unresolved org PT Sarana Depo Kencana p.93
unresolved org PT Wahana Lentera Raya p.93 ×6
unresolved org PT Kencana Lintasindo Internasional p.93 ×4
unresolved org PT Kasakata Kimia p.93
unresolved org PT Panca Kalsiumindo Perkasa p.93 ×3
unresolved org PT Megadepo Indonesia p.93 ×3
unresolved org PT Wita Indo Talisayan p.94
unresolved org PT Umaq Tukung Mandiri Utama p.94
unresolved org PT Wita Internasional Bisnis Artisan p.94
unresolved org PT Sarana Daya Hutama p.94
unresolved org Bank Indonesia’s p.95
unresolved org Bank Indonesia. Business Development Strategy In p.96
unresolved org Minister of Industry p.97
unresolved org Minister of Law and Human Rights p.107
unresolved org Young Global Limited p.111
unresolved person Setiabudhi p.185
unresolved org Departemen Kehakiman Republik p.185
unresolved org Minister of Law p.185
unresolved org Menteri Hukum dan Hak Asasi p.185
unresolved org PT TKTW p.187 ×3
unresolved org PT SRP p.187
unresolved org PT Multipro Paint p.187
unresolved org PT MPI p.187
unresolved org PT TKBI p.187
unresolved org PT Megadepo p.226
unresolved org PT Caturkarda Depo p.226
unresolved org Bangunan Tbk p.226
unresolved org PT Bira Industri p.226
unresolved org PT Wita Indo p.226
unresolved org PT Umaq Tukung p.226
unresolved org PT Wita Internasional p.226
unresolved org PT Sarana Daya p.226
unresolved org PT Bangun Bersama Solusindo Lain-lain p.226 ×2
unresolved org PT Kencana Lintasindo Internasional Lain-lain p.226
unresolved org PT Wahana Lentera Raya Lain-lain p.228
unresolved person Notary Dr. Notaris Dr. Susanti · Notaris p.251 ×6

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