Machine Translated by Google GOVERNMENT REGULATION OF THE REPUBLIC OF INDONESIA NUMBER 47 YEAR 2012 ABOUT LIMITED COMPANY SOCIAL AND ENVIRONMENTAL RESPONSIBILITY BY THE GRACE OF GOD ALMIGHTY PRESIDENT OF THE REPUBLIC OF INDONESIA, Considering: that in order to implement the provisions of Article 74 paragraph (4) Law Number 40 of 2007 concerning Companies Limited, it is necessary to stipulate a Government Regulation concerning Social and Environmental Responsibility of Limited Liability Companies; Remember : 1. Article 5 paragraph (2) of the 1945 Constitution of the Republic of Indonesia; 2. Law Number 40 of 2007 concerning Limited Liability Companies (State Gazette of the Republic of Indonesia of 2007 Number Supplement 106, to the State Gazette of the Republic of Indonesia Number 4756); DECIDE: To stipulate: GOVERNMENT REGULATION CONCERNING RESPONSIBILITY SOCIAL AND ENVIRONMENTAL COMPANY LIMITED. article 1 In this Government Regulation what is meant by: 1. Limited Liability Company, hereinafter referred to as Company, is a legal entity which is a capital partnership, established based on an agreement, conducting business activities with authorized capital which is entirely divided into shares and fulfills the requirements stipulated in Law Number 40 of 2007 concerning Limited Liability Companies and their implementing regulations. . 2. Meeting . . . Machine Translated by Google -2- 2. General Meeting of Shareholders, hereinafter referred to as GMS, is an organ of the Company which has authority not granted to the Board of Directors or the Board of Commissioners within the limits stipulated in Law Number 40 of 2007 concerning Limited Liability Companies and/or the articles of association. 3. The Board of Directors is the Company's organ that is authorized and fully responsible for the management of the Company for the benefit of the Company, in accordance with the purposes and objectives of the Company and represents the Company, both inside and outside the court in accordance with the provisions of the articles of association. 4. The Board of Commissioners is an organ of the Company which is tasked with conducting general and/or specific supervision in accordance with the articles of association and providing advice to the Board of Directors. Section 2 Every Company as a legal subject has social and environmental responsibilities. Article 3 (1) Social and environmental responsibility as referred to in Article 2 becomes an obligation for the Company which carries out its business activities in the field of and/or related to natural resources. under the law. (2) The obligations as referred to in paragraph (1) are carried out both inside and outside the Company. Article 4 (1) Social and environmental responsibility is carried out by the Board of Directors based on the Company's annual work plan after obtaining approval from the Board of Commissioners or GMS in accordance with the articles of association of the Company, unless otherwise stipulated in the laws and regulations. (2) The Company's annual work plan as referred to in paragraph (1) contains the activity plan and budget required for the implementation of social and environmental responsibility. Article 5 . . . Machine Translated by Google -3- Article 5 (1) Companies that carry out their business activities in the field of and/ or related to natural resources, in preparing and stipulating activity plans and budgets as referred to in Article 4 paragraph (2) must pay attention to propriety and fairness. (2) The realization of the budget for the implementation of social and environmental responsibility carried out by the Company as referred to in paragraph (1) is calculated as the Company's expense. Article 6 The implementation of social and environmental responsibility is contained in the Company's annual report and is accountable to the GMS. Article 7 Companies as referred to in Article 3 that do not carry out social and environmental responsibilities are subject to sanctions in accordance with the provisions of laws and regulations. Article 8 (1) Social and environmental responsibility as referred to in Article 3 does not prevent the Company from participating in carrying out social and environmental responsibilities as referred to in Article 2. (2) Companies that have participated in implementing social and environmental responsibilities as referred to in paragraph (1) may be awarded by the competent authority. Article 9 This Government Regulation comes into force on the date of promulgation. So that . .. Machine Translated by Google -4- For public cognizance, it is ordered that this Government Regulation be promulgated by placing it in the State Gazette of the Republic of Indonesia. Stipulated in Jakarta on April 4, 2012 PRESIDENT OF THE REPUBLIC OF INDONESIA, signed DR. H. SUSILO BAMBANG YUDHOYONO Promulgated in Jakarta on April 4, 2012 MINISTER OF LAW AND HUMAN RIGHTS REPUBLIC OF INDONESIA, signed AMIR SYAMSUDDIN STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2012 NUMBER 89 Copies match the original MINISTRY OF STATE SECRETARIAT REPUBLIC OF INDONESIA Assistant Deputy for Legislation Economics, Setio Sapto Nugroho Machine Translated by Google EXPLANATION ON GOVERNMENT REGULATION OF THE REPUBLIC OF INDONESIA NUMBER 47 YEAR 2012 ABOUT LIMITED COMPANY SOCIAL AND ENVIRONMENTAL RESPONSIBILITY I. GENERAL This Government Regulation implements the provisions of Article 74 of Law Number 40 of 2007 concerning Limited Liability Companies. This Government Regulation regulates social and environmental responsibilities aimed at realizing sustainable economic development in order to improve the quality of life and the environment that is beneficial for the local community and society in general as well as the Company itself in the context of establishing a harmonious, balanced, and environmentally compatible Company relationship. , values, norms, and culture of the local community. In this Government Regulation, companies whose business activities are in the field and/ or related to natural resources are required to carry out social and environmental responsibilities. Activities in fulfilling social and environmental responsibility obligations must be budgeted and calculated as the Company's expenses which are carried out with due regard to propriety and fairness. The social and environmental responsibility arrangements are intended for: 1. increase the Company's awareness of the implementation of responsibilities social and environmental responsibility in Indonesia; 2. meet the development of legal needs in society regarding social and environmental responsibility; and 3. strengthen the social and environmental responsibility arrangements that have been regulated in various laws and regulations in accordance with the Company's business activities. Regarding . . . Machine Translated by Google -2- In connection with the foregoing, this Government Regulation regulates: 1. Social and environmental responsibilities carried out by the Company in carrying out its business activities in the field and/or related to natural resources based on the Law. 2. The implementation of social and environmental responsibility is carried out inside or outside the Company's environment. 3. Social and environmental responsibilities are carried out based on an annual work plan that contains a plan of activities and the budget required for its implementation. 4. The implementation of social and environmental responsibilities is prepared by taking into account propriety and fairness. 5. The implementation of social and environmental responsibility must be included in the Company's annual report to be accountable to the GMS. 6. Confirmation of the regulation on the imposition of sanctions on the Company that does not carry out its social and environmental responsibilities. 7. Companies that have played a role and carried out social and environmental responsibilities may be awarded by the competent authority. II. CHAPTER BY ARTICLE article 1 Quite clear. Section 2 This provision emphasizes that basically every Company as a form of human activity in the business field, is morally committed to being responsible for maintaining a harmonious and balanced relationship between the Company and the environment and local community in accordance with the values, norms and culture of the community. Article 3 Paragraph (1) What is meant by "Companies that carry out their business activities in the field of natural resources" are Companies that its business activities manage and utilize natural resources. Which . . . Machine Translated by Google -3- What is meant by "Companies that carry out their business activities related to natural resources" are Companies that do not manage and do not utilize natural resources, but whose business activities have an impact on the function of natural resource capabilities, including the preservation of environmental functions. What is meant by "based on the law" is the law along with implementing regulations for laws concerning natural resources or relating to natural resources, as well as ethics in running a company, including: statutory regulations in the fields of industry, forestry, oil and natural gas, state-owned enterprises, geothermal businesses, water resources, mineral and coal mining, electricity, environmental protection and management, prohibition of monopolistic practices and unfair business competition, human rights, employment, and consumer protection. Paragraph (2) Quite clear. Article 4 Paragraph (1) What is meant by “unless otherwise stipulated in the laws and regulations” is the laws and regulations stipulating otherwise that the approval of the work plan is given by the GMS, then the articles of association cannot determine the work plan to be approved by the Board of Commissioners or vice versa. Paragraph (2) Quite clear. Article 5 Paragraph (1) What is meant by "property and fairness" is the Company's policy, which is adjusted to the Company's financial capability, and the potential risks that result in social and environmental responsibilities that must be borne by the Company in accordance with its business activities that do not reduce the obligations as stipulated in the provisions of laws and regulations related to the Company's business activities. Paragraph (2) Quite clear. Article 6 . . . Machine Translated by Google -4- Article 6 Quite clear. Article 7 What is meant by "sanctioned in accordance with the provisions of the legislation" is being subjected to all forms of sanctions regulated in the relevant laws and regulations. Article 8 Paragraph (1) What is meant by "not preventing the Company from participating in carrying out social and environmental responsibilities" is that the Company can still carry out social and environmental responsibilities other than those that have become its obligations. Paragraph (2) What is meant by “award” is for example facilities or other forms of appreciation. Article 9 Quite clear. SUPPLEMENT TO STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 5305