Based on the Company Law and the Company’s Articles of Association, the entire net profit of the Company after deducting the allowance for mandatory reserves can be distributed to shareholders as dividends, unless otherwise determined at the GMS. The Company can only distribute dividends if the Company has a positive retained earnings balance.
In accordance with Indonesian laws and regulations and the Company’s Articles of Association, decisions regarding dividend distribution are determined through shareholder approval at the annual GMS based on recommendations from the Company’s Directors. The Company can distribute dividends in the year in which the Company records net profit.
The Company’s Board of Directors determines the dividend distribution policy to the Company’s shareholders by considering factors including (i) compliance with applicable regulations; (ii) the level of financial health of the Company; (iii) future capital adequacy targets and projections; (iv) the Company’s future business plans and prospects (v) the Company’s capital position and (vi) other matters deemed relevant by the Company’s Directors. The Company also ensures that any planned dividend distribution does not have a detrimental impact on the Company’s financial performance or risk profile.
After this Initial Public Offering of Shares, starting in the 2024 financial year onwards, taking into account the decisions of the shareholders at the GMS, the Company’s Board of Directors plans to distribute dividends to the Company’s shareholders with a maximum value of 30% (thirty percent) of the financial year’s net profit. concerned.
If the GMS approves the distribution of dividends, then the dividends will be distributed to all shareholders registered on the date of the list of shareholders entitled to dividends, taking into account income tax and withholding taxes in accordance with applicable regulations, if any.
The Board of Directors can change the dividend policy at any time as long as it obtains approval from the shareholders at the GMS.
The Company has committed to establishing reserves as intended in Law Number 40 of 2007 concerning Limited Liability Companies, where the reserve funds will be stated in the next General Meeting of Shareholders (GMS).
The Company does not have negative covenants regarding restrictions on third parties in the distribution of dividends.
The company has never made dividend payments or distributions in the last three years.