3 6 - KIA Ceramics

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2VISI & MISIVision & Mission

PROFIL PERUSAHAANCompany Profile

LAPORAN DEWAN KOMISARISBoard of Commissioners Report

LAPORAN DIREKSIBoard of Directors Report

INFORMASI SAHAMShares Information

TANGGUNG JAWAB SOSIAL PERUSAHAANCorporate Social Responsibility

TANGGUNG JAWAB MANAJEMEN ATAS LAPORAN TAHUNANManagement Responsibility

PROFIL DEWAN KOMISARISThe Board of Commissioners Profile

PROFIL DIREKSIThe Board of Directors Profile

ANALISA & PEMBAHASAN MANAJEMENManagement Analysis & Dis-cussion

TATA KELOLA PERSEROANCorporate Governance

IKHTISAR KEUANGAN KONSOLIDASIANCOnsolidated Financial Highlights

STRUKTUR ORGANISASI PERSEROANOrganization Structure

Daftar IsiTable of Content

LAPORAN KEUANGAN KONSOLIDASIConsolidated Financial Statement

CSR ACTIVITIES of SCG

58 112

PB Annual Report 2017 1Annual Report 2017Laporan Tahunan 2017 Laporan Tahunan 2017

Mission

To be a sustainable and profitable company in Indonesia and preferred provider of

ecology friendly product focusing on customer satisfaction, operational excellence and contributing to local Communities.

Focusing on R&D in product & services including transferring best practices and Business Philosophy from SCG, Thailand,

the Company emphasizes on developing high value products, human resources development, customer satisfaction and

eco-friendly products. These missions will bring the sustainable growth and profit to the Company.

Vision

Berfokus pada Penelitian dan Pengembangan dalam produk dan pelayanan termasuk transfer

ilmu dan filosofi usaha dari SCG, Thailand, Perusahaan menekankan pada pengembangan produk yang bernilai tinggi, pengembangan sumber daya manusia, kepuasan pelanggan dan produk yang ramah lingkungan. Misi ini akan membawa pertumbuhan yang berkelanjutan dan keuntungan bagi Perusahaan.

&

Menjadi Perusahaan yang menguntungkan dan berkelanjutan di Indonesia serta penyedia produk ramah lingkungan, fokus pada

kepuasan pelanggan, keunggulan operasional dan berkontribusi pada masyarakat setempat.

VISI

MISI

VISION & MISSION

2 Annual Report 2017 3Annual Report 2017Laporan Tahunan 2017 Laporan Tahunan 2017

PT Keramika Indonesia Assosiasi, Tbk. (“Perseroan”) didirikan menurut Undang-undang Penanaman Modal Asing No. 1 Tahun 1967 berdasarkan akta Notaris

Juliaan Nimrod Siregar, S.H., Notaris di Jakarta tanggal 28 Nopember 1968. Status Perseroan sebagai Penanaman Modal Asing (PMA) berubah menjadi Penanaman Modal Dalam Negeri (PMDN) berdasarkan Surat Keputusan Ketua Badan Koordinasi Penanaman Modal (BKPM) No. 25/V/1992 tanggal 15 Juni 1992. Dan status Perseroan kembali menjadi Penanaman Modal Asing (PMA) berdasarkan Izin Prinsip yang diterbitkan oleh Kepala BKPM dengan No.4438/1/IP/PMA/2017 dan No.4444/1/IP/PMA/2017 tanggal 2 November 2017.

Sejak tahun 1968, kegiatan usaha Perseroan adalah sebagai produsen Keramik dinding berkualitas tinggi beserta aksesorisnya. Di tahun 2017, Perseroan mempekerjakan 478 karyawan terampil dan berkinerja baik. Di pasar domestik dan internasional – yang meliputi Asia, Australia dan Afrika, Perseroan mendapatkan pengakuan pasar dengan merek dagang KIA (termasuk seri KIA HD) dan IMPRESSO, yang dikenal dengan baik untuk kualitas dan pelayanannya.

Kantor Pusat Head Office

Cowell Tower, Lt. 2 Jl. Senen Raya No. 135Jakarta - 10410, IndonesiaTelp. : (62-21) 350-6227 (Hunting)Fax. : (62-21) 386-2374Email : [email protected] : www.kiaceramics.com *) Sejak tanggal 15 February 2017

Pabrik Factory

• Jl. Raya Narogong Km 51,9, Limusnunggal, Cileungsi Bogor, Jawa Barat - Indonesia• Kawasan Industri Surya Cipta Jl. Surya Lestari Kav. 1 & 2, Teluk Jambe Karawang, Jawa Barat – Indonesia

Sejak 4 November 1994, Perseroan secara efektif mencatatkan sahamnya di Bursa Efek Jakarta dan Surabaya, dilanjutkan dengan Penawaran Umum Terbatas I dengan Hak Memesan Efek Terlebih Dahulu pada Tahun 1997 dan mencatat jumlah keseluruhan saham dalam Perseroan sebanyak 425.000.000. Pada tanggal 12 Juli 2008, Perseroan menerbitkan sebanyak 8.000.000.000 lembar saham baru untuk mengkonversi utang Perseroan kepada para kreditur, sehingga total keseluruhan jumlah saham Perseroan menjadi 8.425.000.000 saham.

Melalui perdagangan otomatis (Jakarta Automated Trading System) di Bursa Efek Indonesia dan berdasarkan Akta Pernyataan Keputusan Rapat No. 26 tanggal 27 September 2011 yang dinyatakan kembali dengan Akta Pernyataan

PT Keramika Indonesia Assosiasi, Tbk. (“Company”) was established in accordance with Foreign Investment Law No.1 Year 1967 based on the Notarial Deed Juliaan Nimrod Siregar, S.H., Notary in Jakarta dated 28 November 1968. The Company status was changed from Foreign Investment to Domestic Investment based on the Decision Letter from Chairman of Investment Coordinating Board No. 25/V/1992 dated 15 June 1992. The status of the Company was returned to Foreign Investment based on the issuance of Principal Licence No.4438/1/IP/PMA/2017 and No.4444/1/IP/PMA/2017 by the Chairman of Investment Coordinating Board of the Republic of Indonesia dated 2 November 2017.

The company is the major producer of high quality ceramic wall tiles including its accessories since 1968. In 2017, the Company employed 478 skilled and well-performed employees. In the domestic and international market – covering Asia, Australia and Africa, the Company possesses market recognition with the brand KIA (including KIA HD series) and IMPRESSO, which is well known for its good quality product and services.

Since 4 November 1994, Company has effectively listed its shares at Jakarta and Surabaya Stock Exchange, continued with Limited Public Offering I with Pre-emptive Rights in 1997 and listing for a total of 425,000,000 shares. On 12 July 2008, Company swap its debt to newly issued 8,000,000,000 shares making total listed shares of the Company became 8,425,000,000 shares.

Through Jakarta Automated Trading System of Indonesia Stock Exchange and based on the Deed No. 26 dated 27 September 2011, restated by Deed No. 4 dated 5 October 2011, both were made by Sri Hidianingsih Adi Sugijanto,

Company Profile

Pabrik KIA Karawang

Profil Perusahaan


Keputusan Rapat No. 4 tanggal 5 Oktober 2011 yang keduanya dibuat di hadapan Sri Hidianingsih Adi Sugijanto, S.H., Notaris di Jakarta, para pemegang saham menyetujui masuknya SCG Building Materials Co., Ltd. sebagai pengendali baru Perseroan dengan total kepemilikan saham sebanyak 93,51% pada akhir tahun 2011.

SCG Building Materials Co., Ltd. adalah perusahaan terkemuka yang bergerak di bidang industri bahan bangunan di Thailand, yang berdiri pada tanggal 9 Desember 1998; dengan alamat di 1 Siam Cement Road, Bangsue Sub-District, Bangsue District, Bangkok, Thailand

SCG Building Materials, Co., Ltd. melaksanakan Tender Offer pada tanggal 5 Juli – 3 Agustus 2011 dan memperoleh sebanyak 3.537.500 lembar saham dari pemegang saham masyarakat. Untuk memenuhi peraturan Bapepam dan Lembaga Keuangan No. IX.H.1, SCG Building Materials Co., Ltd. telah menjual seluruh saham hasil Tender Offer tersebut kepada masyarakat pada tanggal 28 Nopember 2012. Kepemilikan saham SCG Building Materials Co., Ltd. di Perseroan adalah sebanyak 14.378.410.753 saham atau sebesar 96,31% per 31 Desember 2012.

Pada tanggal 15 Pebruari 2012 Perseroan secara efektif melaksanakan Penawaran Umum Terbatas II dengan mengeluarkan sebanyak 6.504.100.000 saham Seri B yang telah diambil seluruhnya oleh pemegang saham dan pembeli siaga. Dengan demikian jumlah saham ditempatkan dan disetor penuh dalam Perseroan telah meningkat dari semula 8.425.000.000 menjadi 14.929.100.000 saham.

Anggaran Dasar Perseroan telah mengalami perubahan seiring dengan aksi korporasi yang dilaksanakan Perseroan sesuai dengan Akta No. 13 tanggal 10 Oktober 2011 dibuat oleh Sri Hidianingsih Adi Sugijanto, S.H., Notaris di Jakarta, mengenai penurunan modal dasar dan modal ditempatkan dan disetor serta penurunan nilai nominal saham sehubungan dengan Kuasi Reorganisasi Perseroan; dan Akta No. 14 tanggal 19 April 2012 dibuat oleh Rudy Siswanto, SH., Notaris Jakarta sehubungan dengan Penawaran Umum Terbatas II; dan Akta No. 23 tanggal 15 Juli 2015 dibuat oleh Sri Hidianingsih Adi Sugijanto, S.H., Notaris di Jakarta sehubungan dengan penyesuaian dengan ketentuan Peraturan Otoritas Jasa Keuangan (OJK) No.32/POJK.04/2014 tentang Rencana dan Penyelenggaraan Rapat Umum Pemegang Saham Perseroan Perusahaan Terbuka dan No.33/POJK.04/2014 tentang Direksi dan Dewan Komisaris Emiten atau Perusahaan Publik.

Sejak tahun 2009, Perseroan menggunakan layanan jasa dari Lembaga Penunjang PT Adimitra Transferindo, yang mana pada tahun 2015 melakukan perubahan nama perusahaannya menjadi PT Adimitra Jasa Korpora, dengan alamat sebagai berikut:

S.H., Notary in Jakarta, the shareholders approved SCG Building Materials Co., Ltd. to be the new major shareholder of the Company holding 93.51% of the total shares issued by the Company at the end of year 2011.

SCG Building Materials Co., Ltd. is a leading company in building materials industry in Thailand, established on 9 December 1998; with business address at 1 Siam Cement Road, Bangsue Sub-District, Bangsue District, Bangkok, Thailand.

SCG Building Materials, Co., Ltd. made a Tender Offer on 5 July – 3 August 2011 and obtained 3,537,500 shares from public shareholders. To comply with the rule of Indonesia Capital Market and Financial Institution Supervisory Agency (BAPEPAM & LK) Number IX.H.1, SCG Building materials Co., Ltd. sold all shares resulted from Tender Offer to the Public on 28 November 2012. SCG Building Materials Co., Ltd. holds 14,378,410,753 shares or 96.31% in the Company as of 31 December 2012.

On 15 February 2012 the Company effectively executed Rights Issue II by issuing 6,504,100,000 Series B shares, and fully acquired by shareholders and standby purchasers. Therefore, the total number of shares issued and paid up by the Company increased from 8,425,000,000 to 14,929,100,000 shares.

The Company’s Articles of Association were amended along with corporate action done by Company pursuant to the Deed No. 13 dated 10 October 2011 by Sri Hidianingsih Adi Sugijanto, S.H., Notary in Jakarta, regarding the reduction of capital, issued and paid-up capital and the decrease of share nominal value in relation to quasi-reorganization; and the Deed No. 14 dated 19 April 2012 by Rudy Siswanto, S.H., Notary in Jakarta regarding Rights Issue II; and Deed No. 23 dated 15 July 2015 by Sri Hidianingsih Adi Sugijanto, S.H., Notary in Jakarta in accordance with Financial Services Authority (OJK) Regulation No.32/POJK.04/2014 about Plan and Implementation of General Meeting of Shareholders for Public Company and No.33/POJK.04/2014 about Board of Directors and Board of Commissioners of Public Company.

Since 2009, the Company utilizes service from PT Adimitra Transferindo, which on year 2015 changed its company name to PT Adimitra Jasa Korpora, with address as follow:

Profil Perusahaan


PT Adimitra Jasa KorporaRukan Kirana Boutique Office, Blok F3 No. 5Jl. Boulevard RayaKelapa Gading PermaiJakarta Utara 14250

sebagai Biro Administrasi Efek yang disertifikasi oleh Badan Pengawas Pasar Modal dan Lembaga Keuangan Indonesia (Bapepam) untuk mendukung Perseroan dalam hal administrasi efek dengan biaya sebesar Rp. 20.000.000,- per tahun.

Laporan Keuangan Perseroan untuk tahun 2017 dan 2016 diaudit oleh Kantor Akuntan Publik Siddharta Widjaja dan Rekan (member dari KPMG International) yang beralamat di Wisma GKBI Lt.33, Jl. Jend. Sudirman Kav.28, Jakarta. Kantor Akuntan Publik melakukan audit laporan keuangan tahunan dengan biaya sebesar Rp. 574.244.000,-.

Sejak bulan Juni 2008, secara berkala Perseroan menggunakan jasa Notaris Sri Hidianingsih Adi Sugijanto, S.H., Notaris di Jakarta, terutama dalam pelaksanaan Rapat Umum Pemegang Saham dengan biaya sebesar Rp. 30.000.000,- per tahun.

Saat ini, Perseroan memiliki 2 Anak Perusahaan, yaitu PT KIA Keramik Mas (99,21%) yang bergerak di bidang Industri Genteng Keramik beralamat di Jalan Raya Narogong KM. 51,9 Limusnunggal, Cileungsi - Bogor dan di Jalan Raya Karang Andong, Pasinan, Lemah Putih Wringin Anom, Gresik - Surabaya dan PT KIA Serpih Mas (86,68%) yang bergerak di bidang industri Lantai Keramik beralamat di Jalan Raya Narogong KM. 51,9 Limusnunggal, Cileungsi - Bogor dan di Kawasan Industri Surya Cipta, Jalan Surya Lestari Kav. 1 & 2, Kecamatan Ciampel, Karawang Timur dengan porsi kepemilikan sebagaimana skema di bawah ini.

PT Adimitra Jasa KorporaRukan Kirana Boutique Office, Blok F3 No. 5Jl. Boulevard RayaKelapa Gading PermaiJakarta Utara 14250

as share registrar certified by Indonesia Capital Market and Financial Institution Supervisory Agency for the Securities Administration with a fee of IDR 20,000,000 per year.

The Company’s Financial Statement for the year 2017 and 2016 was audited by Registered Public Accountant Siddharta Widjaja and Partners (member of KPMG International) located at Wisma GKBI, 33rd Floor, Jl. Jend. Sudirman Kav.28, Jakarta. Audit fee for the Company’s annual financial statement is IDR 574,244,000.

Since June 2008, the Company periodically utilizes service from Sri Adi Hidianingsih Sugijanto, S.H., Notary in Jakarta, particularly for the General Meeting of Shareholders with a fee of IDR 30,000,000 per annum.

Currently, the Company has 2 subsidiaries, i.e. PT KIA Keramik Mas (99.21%) engaged in Ceramic Roof Tile industry, located at Jalan Raya Narogong KM. 51.9 Limusnunggal, Cileungsi - Bogor and Jalan Raya Karang Andong, Pasinan, Lemah Putih Wringing Anom, Gresik - Surabaya and PT KIA Serpih Mas (86.68%) engaged in Ceramic Floor Tile industry, located at Jalan Raya Narogong KM. 51.9 Limusnunggal, Cileungsi - Bogor and Surya Cipta City of Industry, Jalan Surya Lestari Kav. 1 & 2, Ciampel District, East Karawang with ownership as shown in the diagram below:

13.32%

PT Keramika Indonesia Assosiasi Tbk

PT KIA Keramik Mas (KKM)

PT KIA Serpih Mas (KSM)

96.31%

0.79% 99.21% 86.68%

3.69%

Masyarakat (Public)SCG Building Materials Co., Ltd. skemaporsi

kepemilikan

SharesOwnership

Diagram

Profil Perusahaan


Komisaris Utama President Commissioner

Ekonomi dan Tinjauan Industri

Pemulihan ekonomi global berlanjut di 2017 didukung oleh pertumbuhan positif perekonomian negara-negara maju dan perekonomian utama lainnya.

Demikian juga, ekonomi Indonesia di tahun 2017 mencatat pertumbuhan positif dengan pertumbuhan PDB 5.07% dan inflasi yang terkendali di 3.61%, memberikan ruang bagi Bank Indonesia untuk melakukan penurunan suku bunga acuan dari 4.75% menjadi 4.25%. Meskipun demikian, pertumbuhan ekonomi domestik tetap berlangsung lambat dan tidak merata di semua sektor ekonomi. Kontribusi terbesar terhadap pertumbuhan PDB di 2017 berasal dari pengeluaran konsumsi rumah tangga yang mengalami perlambatan dibandingkan dengan tahun 2016, walaupun tingkat inflasi rendah serta didukung oleh paket kebijakan ekonomi pemerintah, kemudian diikuti dengan investasi dan ekspor.

Sementara itu, volatilitas dan ketidakpastian pasar sepanjang 2017 telah memberikan dampak negatif terhadap berbagai industri, termasuk sektor manufaktur, terutama industri keramik. Industri keramik mengalami tantangan sehubungan dengan tingginya harga gas, persaingan di pasar keramik, perlambatan pertumbuhan pasar properti dan real estate, serta dampak dari peningkatan jumlah keramik impor.

Penilaian Atas Kinerja Direksi

Dewan Komisaris mensyukuri bahwa PT Keramika Indonesia Assosiasi Tbk berhasil melalui tahun 2017 yang penuh tantangan baik internal maupun ekstenal dan terus bertumbuh, serta mampu menggunakan kesempatan dan mengantisipasi hambatan-hambatan. Meskipun pasar keramik domestik mengalami

Economic and Industry Overview

The global economic recovery continued in 2017 supported with positive growth of developed economies and other major economies. Likewise, Indonesia economic in 2017 have recorded positive growth with annual GDP grew at 5.07% and inflation was well controlled at 3.61%, making rooms for Bank Indonesia to make downward adjustments to its benchmark rate from 4.75% to 4.25%. Nevertheless, domestic economy expansion remains slow and uneven across all sectors of economy. The highest contribution towards GDP growth in 2017 is household consumption though it grew slower compared to 2016 despite low inflation and government stimulus packages, followed by investment and export.

Meanwhile, market volatility and uncertainty throughout 2017 has had negative business impact on numerous business industries, including manufacturing sector especially in ceramic industry. Ceramic industry experienced challenges associated with high gas price, heavy competition in ceramic market, slowdown in property and real estate market, and impact from increased of imported ceramic tile.

Assessment of the Board of Directors’ Performance

The Board of Commissioners is very grateful that PT Keramika Indonesia Assosiasi Tbk has passed 2017 that was full of internal and external challenges and continued to grow in recent years, and has been able to seizes opportunities and anticipate obstacles. Notwithstanding with domestic ceramic

Laporan Dewan Komisaris Board of Commissioners Report

Aree Chavalitcheewingul


market slow-down, in 2017 KIA recorded net sales of IDR 810,064,124,425 or 6.2% lower than 2016 which amounted to IDR 863,714,584,966. However, the Company achieved business process improvement in which the result still requires time before able to create a positive contribution to earnings of the Company in general.

The Board of Directors has performed satisfactorily throughout 2017. This is reflected in the Company’s net loss that continued to improve despite challenges faced by the Company. The Board of Directors has pursuing various strategy measures so that Company continue to thrive in the highly competitive ceramic market and the Board of Commissioners will fully support the programs and plan proposed by Board of Directors, and optimist that it will bring the Company to achieve its set target.

Supervision of the Implementation of Company’s Strategy

Throughout the year, the supervision and recommendation of the implementation of strategic policies of the Board of Directors is exercised through regular and open communication between the two Boards through various channels, the most important is the joint meetings between the Board of Commissioners and Board of Directors.

Frequency and Methods of Advice Given to the Members of the Board of Directors

The Board of Commissioners advises the Board of Directors at meetings. The meetings of Board of Commissioners, based on the Articles of Association, are to be held at least once every two months, while the meetings of the Board of Commissioners and the Board of Directors are to be held at least once every four months. In 2017, the Board of Commissioners organized 3 joint meetings between the Board of Commissioners and Board of Directors, and 6 Board of Commissioners meeting.

perlambatan, di tahun 2017 KIA membukukan penjualan bersih Rp. 810.064.124.425,- atau 6.2% lebih rendah dari tahun 2016 dengan total Rp. 863.714.584.966,- . Namun demikian, Perseroan berhasil melakukan perbaikan proses bisnis yang hasilnya masih memerlukan waktu untuk memberikan kontribusi positif kepada laba Perseroan secara umum.

Direksi telah bekerja dengan baik sepanjang tahun 2017. Hal ini tercermin dari penurunan angka kerugian yang terus berkurang meskipun Perseroan menghadapi berbagai tantangan. Direksi telah mengupayakan berbagai langkah strategis agar Perseroan tetap bertahan dan tumbuh dalam kancah persaingan di industri keramik dan Dewan komisaris akan sepenuhnya mendukung program dan rencana yang diajukan oleh Direksi, dan optimis bahwa program dan rencana tersebut akan membawa Perseroan mencapai target yang telah ditetapkan.

Pengawasan Terhadap Implementasi Strategi Perseroan

Sepanjang tahun, pengawasan dan rekomendasi atas implementasi kebijakan strategis Direksi dilakukan melalui komunikasi yang teratur dan terbuka antara Dewan Komisaris dan Direksi melalui berbagai cara, utamanya melalui rapat gabungan dan antara Dewan Komisaris dan Direksi.

Frekuensi dan Cara Pemberian Nasihat Kepada Anggota Direksi

Dewan Komisaris memberikan nasihat kepada Direksi pada saat pertemuan dilaksanakan. Pertemuan Dewan Komisaris, berdasarkan Anggaran Dasar Perseroan, diadakan setiap dua bulan sekali, sedangkan pertemuan gabungan Dewan Komisaris dan Direksi dilaksanakan setiap empat bulan sekali. Di tahun 2017, Dewan Komisaris telah mengadakan tiga kali pertemuan gabungan antara Dewan Komisaris dan Direksi, dan enam kali pertemuan Dewan Komisaris.

Garnet Biege

Laporan Dewan Komisaris


Selama pertemuan tersebut, Dewan Komisaris memberikan nasihat dan rekomendasi kepada Direksi, dan Direksi memberikan ringkasan laporan mengenai hal-hal yang berhubungan dengan pelaksanaan strategi-strategi yang berada dibawah wewenang Dewan Komisaris.

Prospek Usaha Perseroan

Dengan ekonomi global dan Indonesia diperkirakan akan terus menunjukan kinerja yang baik di tahun 2018, Dewan Komisaris optimis terhadap prospek bisnis keramik di tahun mendatang, dengan konsumsi rumah tangga yang diperkirakan akan membaik seiring dengan peningkatan upah, peningkatan pengeluaran pemerintah untuk perumahan rakyat dan infrastruktur, dan pertumbuhan di sektor konstruksi, properti dan real estat. Sementara itu, kenaikan harga komoditas juga di perkirakan akan mendorong perekonomian terbesar di Asia Tenggara. Indonesia merupakan salah satu negara eksportir komoditas terbesar di dunia.

Implementasi Tata Kelola Yang Baik

Dewan Komisaris memberikan dukungan terhadap upaya Perseroan untuk meningkatkan pelaksanaan tata kelola perusahaan yang baik di semua level organisasi. Dewan Komisaris menyadari bahwa tata kelola perusahaan yang baik memiliki peran penting dalam meningkatkan kinerja Perseroan, melindungi kepentingan pemangku kepentingan, meningkatkan kepatuhan terhadap peraturan dan perundangan yang berlaku, dan menjunjung tinggi nilai-nilai etik Perseroan. Direksi akan terus fokus pada 4 Nilai Utama SCG: Kepatuhan terhadap Keadilan, Dedikasi terhadap Keunggulan, Keyakinan akan Nilai Individu, dan Kepedulian

During those meetings, the Board of Commissioners provided advice and recommendations to the Board of Directors and was briefed by the Board of Directors about all matters relating to the implementation of the strategies under the authority of the Board of Commissioners.

Outlook on Business Prospects

With the global and Indonesian economy expected to continue to perform well in 2018, the Board of Commissioners is optimistic of the prospects for ceramic business in the coming year, with household consumption is estimated to improve on the back of rising wages, increase of government spending for public housing and infrastructure, and growth in construction, property and real estate market. Meanwhile, rising commodity prices are also expected to boost the economy of Southeast Asia’s largest economy. Indonesia is one of the world’s biggest commodity exporters.

Implementation of Good Corporate Governance

The Board of Commissioners supports the Company’s efforts to improve the implementation of Good Corporate Governance (“GCG”) practices at all levels of the organization. The Board of Commissioners recognizes that Good Corporate Governance plays an important role in boosting the Company’s performance, protecting the interests of our stakeholders, raising compliance with the prevailing laws and regulation, and upholding the ethical values of the Company. The Board of Directors will continuously focus on SCG 4 core values: Adherence to Fairness, Dedication to Excellence, Belief in the Value of Individual, and Concern for Social Responsibility;


Ferara Brown


as standard guidelines for the Company’s Good Corporate Governance. Throughout 2017, the Company managed to consistently implement the principles of GCG.

In 2017, the Company continued to focus on, among others, the importance of education to create quality individuals. For this, the Company provided training programs for employees to improve their skill and knowledge, while for the society Company continued the annual scholarship program “SCG Sharing the Dreams”. Other than that, Company also consistently donates ceramic tiles for the needs of the surroundings, and provided donation for religious event as well.

Changes in the Board of Commissioners’ Composition

In 2017, there was no change in composition of the Board of Commissioners.

Concluding Remarks

To conclude, the Board of Commissioners wishes to express deepest gratitude to the Board of Directors and all employees for their dedication and hard work during challenging period in 2017 for continuously deliver satisfactory performance for the Company. We also would like to convey our deepest appreciation for the ongoing supports of all Company’s shareholders and stakeholders; and we look forward to the continuing support of all stakeholders in 2018 and beyond to make it possible for the Company to expand its business and become a leader in ceramic business in ASEAN.

pada Tanggung Jawab Sosial; sebagai pedoman standar untuk Tata Kelola Perusahaan yang Baik. Sepanjang tahun 2017, Perseroan secara konsisten berhasil mengimplementasikan prinsip tata kelola perusahaan yang baik.

Di tahun 2017, Perseroan secara berkelanjutan tetap berfokus pada pentingnya pendidikan untuk menciptakan individu-individu yang berkualitas. Dalam hal ini, Perseroan memberikan program-program pelatihan untuk karyawan guna meningkatkan keahlian dan pengetahuan, sedangkan untuk masyarakat, Perseroan melanjutkan program pemberian bea siswa tahunan “SCG Sharing the Dreams”. Selain itu, Perseroan secara konsisten juga memberikan donasi keramik bagi penduduk sekitar yang membutuhkannya, serta memberikan sumbangan keagamaan.

Perubahan pada Komposisi Dewan Komisaris

Pada tahun 2017, tidak terjadi perubahan komposisi Dewan Komisaris.

Penutup

Sebagai penutup, Dewan Komisaris ingin mengucapkan terima kasih kepada seluruh jajaran Direksi dan karyawan atas dedikasi dan kerja kerasnya di tahun 2017 yang penuh tantangan dan terus memberikan kinerja yang memuaskan bagi Perseroan. Kami juga ingin menyampaikan terima kasih atas dukungan yang telah diberikan oleh seluruh pemegang saham dan pemangku kepentingan; dan kami mengharapkan dukungan yang berkelanjutan dari seluruh pemangku kepentingan di tahun 2018 dan seterusnya sehingga memungkinkan Perseroan untuk mengembangkan bisnisnya dan menjadi pemimpin di industri keramik di ASEAN.

Jakarta, 18 April 2018Atas nama Dewan Komisaris,

On behalf of the Board of Commissioners,

Aree ChavalitcheewingulKomisaris Utama

President Commissioner



LaporanDewanDireksi Board of Directors Report

Numpol MalichaiDirektur Utama President Director

Ekonomi dan Tinjauan Industri

Ekonomi Indonesia menunjukkan kinerja positif di tahun 2017. Pertumbuhan PDB tahunan Indonesia mencapai 5.07% di tahun 2017 dibandingkan

dengan 5.02% di tahun 2016, yang sebagian besar didukung oleh pengeluaran pemerintah untuk proyek infrastruktur. Sebagai pengakuan atas pencapaian perbaikan ekonomi, lembaga pemeringkat Standard & Poor, Moody, dan Fitch telah meningkatkan penilaiannya untuk Indonesia menjadi Investment Grade. Pengakuan ini akan membantu perekonomian dengan menarik investor asing. Kinerja ekonomi indonesia terutamanya didukung oleh peningkatan investasi dan eksport. Didukung oleh perbaikan harga komoditas, neraca perdagangan indonesia mencatat surplus sebesar USD 11,8 Milliar ditahun 2017 atau meningkat 24% dibandingkan tahun 2016.

Terlepas dari peningkatan ekonomi secara keseluruhan, pengeluaran domestik mengalami penurunan yang disebabkan oleh penurunan daya beli yang memberikan dampak terbesar terhadap kelompok menengah dan atas dimana kelompok ini melakukan pergeseran prioritas dan memiliki persepsi akan pentingnya menabung sebagai antisipasi dari perlambatan ekonomi yang akan terjadi dalam waktu dekat. Di tahun 2017, pasar properti dan real estat membukukan perlambatan dengan pertumbuhan hanya 2.79% dibandingkan dengan 2.82% di tahun 2016. Sejalan dengan perlambatan yang terjadi di sektor ini, pertumbuhan industri keramik mengalami stagnansi di 2017.

Kinerja Tahun 2017

Di tengah-tengah kondisi pasar yang penuh tantangan dan penurunan daya beli masyarakat, melalui penerapan kebijakan strategis, Perseroan telah berhasil merebut peluang dan

Economic and Industry Overview

Indonesia’s economy showed positive performance in 2017. Annual GDP growth was 5.07% in 2017 compared to 5.02% in 2016, which was largely supported by government expenditure for infrastructure projects. In recognition of the improving economy, rating agencies Standard & Poor’s, Moody’s, and Fitch have all upgraded Indonesia’s sovereign rating to Investment Grade status. This will further help the economy to attract additional foreign investment. Indonesia’s economic performance was mainly driven by increased of investment and exports. Supported by the recovery of commodity prices, Indonesia’s Trade Balance recorded a surplus of USD 11.8 billion in 2017 or 24% increase from 2016 balance

Notwithstanding with the overall improving economy, domestic consumption decreased due to a decline in purchasing power that largely affected the middle and upper income class as they shifted priorities and perceived the need to save in anticipation of sluggish economic growth in the near-term ahead. In 2017, property and real estate market recorded a slowed down with growth only 2.79% compared to 2.82% in 2016. Consistent with this sector’s slowdown, ceramic industry growth was stagnant in 2017.

Performance 2017

Amid the challenging market conditions and continued decline in purchasing power, through the application of strategic policies, Company has succeeded to seize the


opportunities and overcome obstacles during 2017. In 2017, the Company recorded an improvement in Operating Loss before tax by 43.5% compared to 2016 with total amount of IDR 95,433,945,482; Total Assets decreased by 5% to IDR 1,767,603,505,697; and Total Liabilities increased by 0.36% to IDR 340,873,208,857.

Strategic Priorities Implementations

To counteract the slowdown in global and domestic economic condition, the Company implemented a number of strategic policies to drive performance. First and foremost was cost effective. Company consistently does maintenance and reconditions machineries to increase production efficiency and operating profit.

Secondly, to increase sales volume and competitiveness, Company strengthened distribution network, improved quality, created various promotion programs, launched new product, and focused on developing High Value Added products

Thirdly, to strengthened customers’ brand awareness, KIA changed its trademark logo and slogan to “Pioneer in Quality” to remind customers that KIA is the first producer of good quality ceramic tile in Indonesia and customers’ satisfaction is Company’s main priority.

Fourthly, to support environmentally friendly product, Company applied the best production processes and increased investment in production technology, and research and development.

Lastly, to achieve sustainable business development, Company invested in technology to catch up with dynamic changes of technology environment and manage to create product that meets with the recent technology standards. Consistent with this, Company also invested in knowledge management to develop and improve employees’ skills and competency in order to create quality human capital.

Comparison of Target versus Achievement

The year 2017 was full of challenges. Nevertheless, the Company able to achieved a satisfactory performance with reduction in Operating Loss before Tax by 43.5% to IDR 95,433,945,482 and reduction in Net Loss by 66.2% to IDR 85,300,976,555. The Company managed to improve its business process during 2017, in which the result will bear fruits in the years to come.

mengatasi hambatan-hambatan di tahun 2017. Di tahun 2017, Perseroan membukukan perbaikan pada Rugi Usaha sebelum pajak sebesar 43.5% dibandingkan pada tahun 2016 dengan total Rp. 95.433.945.482,-; Total Aset menurun 5% menjadi Rp. 1.767.603.505.697,-; dan Total Liabilitas meningkat 0.36% menjadi Rp. 340.873.208.857,-.

Implementasi Kebijakan Strategis

Untuk mengatasi perlambatan kondisi ekonomi global dan domestik, Perseroan menerapkan sejumlah kebijakan strategis untuk mendorong kinerja. Pertama, penghematan biaya. Perseroan secara konsisten melakukan pemeliharaan dan rekondisi mesi-mesin untuk meningkatkan effisiensi produksi dan laba operasional.

Kedua, untuk meningkatkan volume penjualan dan daya saing, Perseroan memperkuat jaringan distribusi, meningkatkan kualitas, membuat beragam program promosi, meluncurkan produk baru, dan fokus pada pengembangan produk-produk yang memiliki nilai tambah.

Ketiga, untuk memperkuat brand awareness konsumen terhadap KIA, Perseroan mengubah logo dan slogannya menjadi “Pioneer in Quality” untuk mengingatkan konsumen bahwa KIA adalah produsen keramik pertama di Indonesia dengan kualitas terbaik dan kepuasan pelanggan merupakan prioritas utama bagi Perseroan.

Keempat, untuk mendukung produk ramah lingkungan, Perseroan menerapkan proses produksi terbaik dan meningkatkan investasi di bidang teknologi produksi, dan penelitian dan pengembangan.

Terakhir, untuk mencapai pengembangan bisnis yang berkelanjutan, Perseroan melakukan investasi di bidang teknologi untuk mengejar perubahan di dunia teknologi dan mampu menghasilkan produk yang sesuai dengan standar teknologi terkini. Sejalan dengan hal ini, Perseroan juga melakukan investasi di bidang manajemen pengetahuan untuk membangun dan memperbarui keterampilan dan kompetensi karyawan untuk menciptakan sumber daya manusia yang berkualitas.

Perbandingan Target dan Pencapaian

Tahun 2017 merupakan tahun yang penuh tantangan. Meskipun demikian, Perseroan mampu mencapai kinerja yang cukup memuaskan dengan penurunan Rugi Usaha sebesar 43.5% menjadi Rp. 95.433.945.482,- dan penurunan Rugi Bersih sebesar 66.2% menjadi Rp. 85.300.976.555,-. Perseroan berhasil memperbaiki proses bisnisnya selama tahun 2017, dimana hasilnya akan dapat di rasakan di kemudian hari.

Laporan Dewan Direksi


Challenges

Indonesia’s ceramic industry faced many challenges externally and internally during 2017 and resulted in reduction of national production capacity. The challenge mainly came from the decrease of customer purchasing power and slowdown in property and real estate market which has caused domestic demand for ceramic has decreased as well. Added with high energy price – mainly gas and electricity, increased of minimum wage, increased of imported tiles, and depreciation of Rupiah towards US Dollar, have deteriorated this industry even further. Though the industry has proposed government for gas price reduction, however government still reluctant to grant the proposal. With continuous support from government to national ceramic industry, through the released of economic packages, improvement in ease of doing business in Indonesia by simplifying investment process for foreign and domestic investors, we are optimist that national ceramic industry will grow and performed well in the future.

Business Prospects

The outlook for the country is relatively stable, with government setting a GDP growth target of 5.2% in 2018. Global economic growth is expected to be better compared to 2017, supported with stable commodity prices and increase of trade volume. However, various economic

uncertainty still looming global economic recovery. Those risks come from normalization of monetary policy in some developed countries and global geo-political factors. Internally, domestic economy will be supported by increase of economic activity, continuous infrastructure development program, and recovery of household consumption. Regional election in 2018 and Presidential election on 2019 will create challenges and opportunities for growth.

We are optimistic that property and real estate market will improve in 2018, and ceramic industry will surpass all obstacles and recover. We believe as property sector grow along with Indonesia economy, supported with stable political, economy and social condition, and increase of customers’ purchasing power, demand for ceramic tile will increase as well.

Implementation of Corporate Governance

Commitment to the implementation of Good Corporate Governance (GCG) always become the main framework for

Tantangan

Industri keramik Indonesia menghadapi beragam tantangan baik dari dalam maupun maupun luar negeri selama 2017 sehingga terjadi penurunan kapasitas produksi nasional. Tantangan tersebut terutama berasal dari penurunan daya beli konsumen dan perlambatan pasar properti dan real estat yang telah menyebabkan permintaan keramik domestik menurun. Tambahan lagi dengan harga energi yang tinggi – terutama gas dan listrik, kenaikan upah minimum, kenaikan jumlah ubin impor, dan depresiasi Rupiah terhadap US Dollar, telah memperburuk kondisi industri keramik lebih jauh. Meskipun industri keramik telah mengajukan penurunan harga gas terhadap pemerintah, tampaknya pemerintah belum dapat mengabulkan permohonan ini. Dengan dukungan berkelanjutan dari pemerintah untuk industri keramik nasional, dengan dirilisnya paket kebijakan ekonomi, perbaikan kemudahan berusaha di Indonesia dengan penyederhanaan proses investasi baik untuk investor lokal maupun asing, kami optimis industri keramik nasional akan tumbuh dan memiliki kinerja yang baik di kemudian hari.

Prospek Bisnis

Prospek untuk negara relatif stabil, dengan target pertumbuhan PDB yang ditetapkan pemerintah sebesar 5,2% pada 2018. Pertumbuhan ekonomi global diperkirakan akan lebih baik dibandingkan dengan tahun 2017, didukung oleh harga komoditas yang stabil dan peningkatan volume perdagangan. Namun demikian, berbagai ketidakpastian ekonomi tetap membayangi pemulihan ekonomi global yang tengah berlangsung. Risiko tersebut berasal dari normalisasi kebijakan moneter di beberapa negara maju serta faktor geopolitik dunia. Di dalam negeri, pertumbuhan ekonomi domestik akan ditopang oleh peningkatan aktivitas ekonomi, berlanjutnya program pembangunan infrastruktur, dan pemulihan tingkat konsumsi masyarakat. Pemilihan kepala daerah di tahun 2018 dan persiapan pemilihan Presiden tahun 2019 akan mendatangkan tantangan serta peluang untuk pertumbuhan.

Kami optimis bahwa pasar properti dan real estat akan membaik di tahun 2018, dan industri keramik dapat pulih kembali. Kami yakin sektor properti tumbuh seiring dengan pertumbuhan ekonomi Indonesia, didukung oleh kondisi politik, ekonomi dan sosial yang stabil, serta peningkatan daya beli konsumen, maka permintaan terhadap keramik akan meningkat.

Pelaksanaan Tata Kelola Perusahaan

Komitmen terhadap pelaksanaan Tata Kelola Perusahaan yang baik (GCG) selalu menjadi landasan utama bagi Direksi dan



the Board of Directors and the management in managing the Company. We believe that by consistently adhering to the principle of transparency, accountability, responsibility, independence, and fairness in every business process, we would be able to maintain a good performance and create added value for all stakeholders.

GCG gives direction and control for the Company to always consistent with the expectation from all stakeholders, laws and regulations, and business ethics practice. Implementation of GCG best practice in the Company referred to SCG 4 core values: Adherence to Fairness, Dedication to Excellence, Belief in the Value of Individual, and Concern for Social Responsibility.

Corporate Social Responsibility (CSR)

The Company’s implementation of Corporate Social Responsibility (CSR) is based on the recognition that our business success is not only determined by our management and operational performances, but also by community support. Company’s CSR programs leads to activities that give significant impact for the welfare of the society.

In 2017, the Company continues the program and CSR activities through giving out annual scholarship to well performed students through “SCG Sharing the Dreams” program, donating ceramic tile to the surrounding societies, religious donation, etc.

seluruh pihak manajemen dalam mengelola Perseroan. Kami percaya bahwa dengan menerapkan prinsip transparansi, akuntabilitas, tanggung jawab, kemandirian, dan prinsip keadilan secara konsisten dalam setiap proses bisnis, maka Perseroan dapat mempertahankan kinerja yang baik dan juga memberikan nilai tambah bagi para pemangku kepentingan.

GCG memberi arah dan kendali bagi Perseroan untuk senantiasa selaras dengan ekspektasi dari seluruh pemangku kepentingan, peraturan dan perundang-undangan yang berlaku, dan praktik etika bisnis. Penerapan best practice GCG di Perseroan mengacu pada empat Nilai Utama SCG, yaitu Kepatuhan terhadap Keadilan, Dedikasi terhadap Keunggulan, Keyakinan akan Nilai Individu, dan Kepedulian pada Tanggung Jawab Sosial.

Tanggung Jawab Sosial Perusahaan

Implementasi tanggung jawab sosial perusahaan didasarkan bahwa keberhasilan usaha tidak hanya ditentukan oleh manajemen dan kinerja operasional, tetapi juga oleh dukungan dari komunitas. Program-program CSR Perseroan mengarah pada kegiatan-kegiatan yang memberikan dampak signifikan pada kesejahteraan masyarakat.

Pada tahun 2017, Perseroan meneruskan program dan kegiatan CSR dengan memberikan bea siswa tahunan kepada murid-murid yang berprestasi melalui program “SCG Sharing the Dreams”, memberikan donasi keramik kepada masyarakat sekitar, memberikan sumbangan keagamaan, dan lainnya.


Crown Beige


Perubahan pada Komposisi Direksi

Perseroan melakukan perubahan komposisi Direksi pada Rapat Umum Pemegang Saham Luar Biasa (RUPSLB) yang diselenggarakan pada tanggal 16 Juni 2017. RUPSLB menyetujui pengunduran diri Kaewsawan Amatachiwin dan Chaovalit Nieamtad; dan menyetujui penunjukan Anusart Meethong sebagai anggota Direksi.

Pada akhir tahun 2017, komposisi Direksi Perseroan sebagai berikut:

Direktur Utama: Numpol MalichaiDirektur: Chalermchai ChirasakyakulDirektur: Susalak Khiew-OrnDirektur: Sarawut WorawatDirektur: Anusart MeethongDirektur Independen: Handono Warih

Atas nama Direksi, kami ingin menyampaikan terima kasih yang sebesar-besarnya kepada Nona Kaaewsawan Amatachiwin dan Bapak Chaovalit Nieamtad untuk dedikasi, komitmen dan kerja kerasnya selama menjabat sebagai Direksi Perseroan. Kami menyambut anggota Direksi yang baru Bapak Anusart Meethong, efektif sejak 1 Juli 2017. Kami yakin bahwa dengan perubahan komposisi Direksi akan membawa perbaikan terhadap kinerja Perseroan.

Appresiasi dan Penutup

Seluruh jajaran Direksi mengucapkan apresiasi dan terima kasih sebesar-besarnya kepada para pemegang saham, pemangku kepentingan, serta mitra bisnis atas dukungan dan kerjasama yang baik selama tahun 2017. Apresiasi mendalam khususnya juga ditujukan kepada Dewan Komisaris, komite-komite terkait, serta seluruh karyawan yang turut berkontribusi dalam mendukung tumbuh kembang Perseroan. Kami berharap untuk menjalin kolaborasi yang lebih baik di masa depan untuk mencapai target 2018.

Changes in the Board of Directors’ Composition

The Company changed the composition of the Board of Directors at the Extraordinary General Meeting of Shareholders (EGMS) held on 16 June 2017. EGMS approved the resignation of Kaewsawan Amatachiwin and Chaovalit Nieamtad; and appointed Anusart Meethong as member of the Board of Directors.

At the end of 2017, the composition of Board of Directors of the Company as follow:

President Director: Numpol MalichaiDirector: Chalermchai ChirasakyakulDirector: Susalak Khiew-OrnDirector: Sarawut WorawatDirector: Anusart MeethongIndependent Director: Handono Warih

On behalf of the Board of Directors, we would like to extend our greatest gratitude to Ms. Kaewsawan Amatachiwin and Mr. Chaovalit Nieamtad for their dedication, commitment, and hard work as a member of the Board of Directors during their term of office. We also welcome the new member Mr.Anusart Meethong, effective as of 1 July 2017, to the Board of Directors. We are confident that the changes to the composition of the Board of Directors will enable the Company to perform well.

Appreciation and Closing

The Board of Directors would like to thank and give utmost appreciation to all shareholders, stakeholders, and business partners for the continuous support, trust and cooperation in 2017. Highest gratitude also goes to the Board of Commissioners, related committees, and all of the employees that have contributed to the growth of the Company. We look forward for a greater collaboration in the future and in achieving our target for 2018.


Jakarta, 18 April 2018Atas nama Direksi,

On behalf of the Board of Directors,

Numpol MalichaiDirektur Utama

President Director


Quality is not an act, it is a habit. Quality is never an accident; it is always

the result of high intention, sincere effort, intelligent direction and skillful execution; it represents the wise choice

of many alternatives. Quality means doing it right when no one is looking


Aktivitas Marketing Marketing Activity

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KIA join Keramika Exhibition 2017 at Jakarta on 16-19 March 2017


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Ikhtisar Keuangan Konsolidasian Consolidated Financial Highlights

Laba Rugi Komprehensif 2017 2016 2015 Comprehensive Income

Penjualan 810,064,124,425 863,714,584,966 800,392,438,557 SalesLaba Kotor 2,779,006,705 (52,161,090,508) (54,279,506,400) Gross ProfitLaba (Rugi) Usaha (95,433,945,482) (168,791,156,106) (194,253,678,293) Operating Income (loss)Laba (Rugi) Bersih (85,300,976,555) (252,499,070,120) (144,635,592,444) Net Income (loss)Laba (Rugi) /Komprehensif yang Dapat Diatribusikan kepada:Pemilik Entitas Induk Kepentingan non PengendaliJumlah

(7,488,622,757) (8,620,474,715) (17,139,147,553)

Profit (Loss)/ Comprehensive Attributable to:

Owner of the Parent Entity and Non-controling Interests

Total (510,175,993) (537,807,535) (1,229,769,197)

(7,998,798,750) (9,158,282,250) (18,368,916,750)Laba (Rugi) Bersih per Saham (Rp) (5.41) (16.09) (9.09) Net Income (Loss) per share (in IDR)

Rasio Keuangan dan Informasi Lain 2017 2016 2015 Financial Ratios and Other Information

Rasio Laba Kotor terhadap Penjualan Bersih 0% -6% -7% Gross Profit to Net Sales Ratio

Rasio Laba (Rugi) usaha terhadap Penjualan Bersih -12% -20% -24% Operating Income (Loss) to Net Sales Ratio

Rasio Laba (Rugi) Bersih terhadap Penjualan Bersih -11% -29% -18% Net Income (Loss) to Net Sales Ratio

Rasio Laba (Rugi) Bersih terhadap Jumlah Aset -5% -14% -7% Return on Assets

Rasio Laba (Rugi) Bersih Ekuitas -6% -17% -8% Return on Equity

Rasio Liabilitas terhadap Jumlah Aset 19% 18% 15% Liabilities to Total Assets Ratio

Rasio Liabilitas Terhadap Ekuitas 24% 22% 18% Liabilities to Total Equity Ratio

Rasio Lancar 311% 313% 324% Current Ratio

Posisi Keuangan 2017 2016 2015 Financial Position

Jumlah Aset 1,767,603,505,697 1,859,669,927,962 2,083,770,044,101 Total AssetsJumlah Liabilitas 340,873,208,857 339,639,855,817 317,493,128,499 Total Liabilities

Jumlah Ekuitas 1,426,730,296,840 1,520,030,072,145 1,766,276,915,602 Stockholders Equity

Arus Kas 2017 2016 2015 Cash Flows

Arus Kas dari Aktivitas Operasi (17,868,868,446) 25,238,536,021 (56,750,000,000) Cash Flow from Operating Activities

Arus Kas dari Aktivitas Investasi (6,707,591,954) (46,051,185,658) (86,337,000,000) Cash Flow from Investing Activities

Arus Kas dari Aktivitas Pendanaan - - - Cash Flow from Financing Activities

Jumlah Saham (Lembar) 2017 2016 2015 Number of Shares

Seri A 425,000,000 425,000,000 425,000,000 A Series

Seri B 14,504,100,000 14,504,100,000 14,504,100,000 B Series

Angka-angka pada seluruh tabel dan grafikdinyatakan dalam Rupiah penuh dan menggunakannotasi bahasa inggris kecuali disebutkan lain

Numerical notation in all tables and graphs infull amount of Rupiah and in English format, unless

stated otherwise


Informasi SahamShares Information

Informasi Pemegang SahamShare Holder Information

Periode / PeriodHarga Saham / Share Price Volume

Perdagangan / Transaction

Volume

Jumlah Saham Yang Beredar /

Listed Shares

Kapitalisasi Pasar / Market

CapitalizationTertinggi / Highest

Terendah / Lowest

Penutupan / Closing

Januari – Maret 2016 108 73 78 3,957,800 14,929,100,000 1,164,469,800,000

April – Juni 2016 95 71 82 3,482,500 14,929,100,000 1,224,186,200,000

Juli – September 2016 88 71 75 4,108,900 14,929,100,000 1,119,682,500,000

Oktober – Desember 2016 100 69 80 5,849,300 14,929,100,000 1,194,328,000,000

Januari – Maret 2017 117 72 88 162,056,400 14,929,100,000 1,313,760,800,000

April – Juni 2017 90 79 82 13,861,500 14,929,100,000 1,224,186,200,000

Juli – September 2017 124 0 100 130,246,900 14,929,100,000 1,492,910,000,000

Oktober – Desember 2017 0 0 100 0 14,929,100,000 1,492,910,000,000

Pemegang Saham / ShareholdersJenis Saham / Type of Stock Persen / Percentage

(%)Seri A /Series A Seri B / Series B

SCG Building Materials Co., Ltd. 0 14,378,410,753 96.31%

PT Mitra Investindo Multicorpora 288,140,200 0 1.93%

Public 136,859,800 125,689,247 1.76%

TOTAL 425,000,000 14,504,100,000 100%

Company shares was suspended in the Regular and Cash Market since

31 July 2017 due to not yet comply to the Provision V.1 of Regulation

Number I-A of PT. Bursa Efek Indonesia Board of Directors Decree number

KEP-00001/BEI/01-2014 which states that one of the requirements for

listed company to remain listed in the Stock Exchange is to have minimum

shareholders that is not Controlling and not Majority shareholders with at

least 50,000,000 (fifty million) shares and at least 7.5% from total paid-

up capital. Company already complied to the 50,000,000 (fifty million)

shares requirement, however still not yet comply to the 7.5% from total

paid-up capital requirement (free-float). Company will try to discuss with

major shareholder to find practical solutions to remove this temporary

suspension. Possible option could be trying to approach potential

investors who are willing to purchase Company’s shares in big lot.

All member of the Board of Commissioners and Board of Directors of the Company, and members of their families hold none of the Company shares.

Saham Perseroan mengalami penghentian sementara perdagangan di Pasar Reguler dan Pasar Tunai sejak tanggal 31 Juli 2017. Hal tersebut disebabkan oleh belum terpenuhinya Ketentuan V.1 dari Peraturan Nomor.I-A Keputusan Direksi PT. Bursa Efek Indonesia Nomor KEP-00001/BEI/01-2014 Tahun 2014 dimana dalam ketentuan tersebut dinyatakan bahwa salah satu syarat bagi perusahaan tercatat untuk tetap tercatat di Bursa adalah jumlah saham yang dimiliki oleh pemegang saham bukan Pengendali dan bukan pemegang saham Utama paling kurang 50.000.000 (lima puluh juta) saham dan paling kurang 7,5% dari jumlah saham dalam modal disetor. Dalam hal ini Perseroan telah memenuhi persyaratan mengenai jumlah saham sebesar 50.000.000 (lima puluh juta) saham, namun belum memenuhi persyaratan paling kurang 7,5% dari jumlah saham dalam modal disetor (free-float). Perseroan masih berdiskusi dengan pemegang saham mayoritas untuk mencari solusi terbaik agar penghentian sementara perdagangan tersebut dapat dicabut. Opsi yang paling memungkinkan adalah mencari calon investor yang bersedia untuk membeli saham Perseroan dalam jumlah besar.

Seluruh Pengurus Perseroan, yaitu Komisaris, Direksi dan anggota keluarganya tidak ada yang memiliki saham Perseroan.


Analisis dan Pembahasan Manajemen Management Analysis & Discussion

1. Financial Overview and Operations Result Year 2017

The consolidated financial statements for fiscal year ended 31 December 2017 was audited by Registered Public Accountant Siddharta Widjaja & rekan with opinion the accompanying consolidated financial Statement present fairly, in all material respects. The consolidated financial statements have been prepared and presented in accordance with Indonesian Financial Accounting Standards (“SAK”). The consolidated financial statements represent the consolidation of the financial statement of the Company with the financial statement of its subsidiaries, in which the company has direct ownership in the following subsidiaries: percentage of ownership for PT KIA Serpih Mas 86.68% and PT KIA Keramik Mas 99.21%.

Comprehensive Income

The Company and its subsidiaries recorded consolidated revenue of IDR 810,064,124,425 or a decreased of 6% compared to revenue on 2016.

The Company recorded gross profit in 2017 of IDR 2,779,006,705, due to decrease of Cost of sales amounted to IDR 108,590,557,754 compared to 2016, which mainly from decreased of material usage.

Nett profit in 2017 IDR (85,300,976,555) or a decreased of 66% or around IDR 167,198,093,565 compared to 2016 IDR (252,499,070,120), which mainly due to in 2016 Company follow Tax Amnesty and decreased of Cost of Sales in 2017.

Financial Position

The Group’s financial assets comprised of cash and cash equivalents, trade receivables, other receivables and other non-current assets, which are categorized as “Financial liabilities measured at amortized costs”.

The Group’s financial liabilities consists of trade payables, other payables, dividend payable, and accrued expenses, which are categorized as “Financial liabilities measured at amortized costs”.

Total asset in 2017 decreased by 5% to IDR 1,767,603,505,697, mainly come from decreased of Fixed Asset IDR 95,854,170,854 compared to 2016.

Total liabilities in 2017 IDR 340,873,208,857, or an increased of IDR 1,233,353,039 from 2016. Trade payable, other payable

1. Tinjauan Keuangan dan Hasil Usaha Tahun 2017

Laporan keuangan konsolidasi Perseroan untuk tahun buku yang berakhir pada tanggal 31 Desember 2017 diaudit oleh Kantor Akuntan Publik Siddharta Widjaja & Rekan dengan opini laporan keuangan konsolidasian di sajikan secara wajar dalam semua hal yang material. Laporan Keuangan Konsolidasian disusun dan disajikan berdasarkan Standar Akuntansi Keuangan di Indonesia (“SAK”). Laporan keuangan konsolidasian merupakan Konsolidasian dari Laporan Keuangan Perseroan dengan laporan keuangan entitas anak, dimana Perseroan memiliki kepemilikan langsung pada entitas anak: persentase kepemilikan untuk PT KIA Serpih Mas 86.68% dan PT KIA Keramik Mas 99,21%.

Laba Rugi Komprehensif

Perseroan dan Anak Perusahaan mencatat pendapatan konsolidasi sebesar Rp. 810.064.124.425,- atau turun sebesar 6 % dibandingkan dengan pendapatan tahun 2016.

Perseroan mencatat laba kotor tahun 2017 sebesar Rp. 2.779.006.705,-, dikarenakan adanya penurunan Beban Pokok Penjualan sebesar Rp. 108.590.557.754,- dibandingkan dengan tahun 2016, dimana hal ini terutama diakibatkan oleh penurunan biaya penggunaan material.

Rugi bersih tahun 2017 Rp.(85.300.976.555,-) atau turun sebesar 66% atau sekitar Rp.167.198.093.565,- dibanding tahun 2016 Rp.(252.499.070.120,-),yang mana hal ini terutama disebabkan karena pada tahun 2016 Perseroan mengikuti program Tax Amnesty dan penurunan Beban Penjualan di 2017.

Posisi Keuangan

Asset keuangan group terdiri dari kas dan setara kas, piutang usaha, piutang lain-lain, dan asset tidak lancar lainnya yang dikategorikan sebagai “Pinjaman yang diberikan dan piutang”.

Liabilitas keuangan group terdiri dari utang usaha, utang lain-lain, utang dividen, dan beban akrual yang dikategorikan sebagai “Liabilitas keuangan yang diukur pada biaya perolehan diamortisasi”.

Total Asset di 2017 turun 5% menjadi Rp. 1.767.603.505.697,- terutama dari penurunan pos asset tetap sebesar Rp. 95.854.170.854,- dibandingkan dengan tahun 2016.

Total kewajiban di 2017 Rp. 340.873.208.857,-, naik sebesar Rp 1.233.353.039,- dibanding tahun 2016. Beberapa pos


seperti Hutang usaha, hutang lain-lain dan liabilitas imbalan kerja mengalami kenaikan sebesar Rp. 26.287.333.708,- dan beberapa pos seperti utang pajak, beban akrual dan liabilitas pajak tangguhan mengalami penurunan sebesar Rp. 25.053.980.669,- dari tahun 2016.

Total Ekuitas di 2017 turun 6% dari tahun 2016 menjadi Rp.1.426.730.296.840,- yang disebabkan oleh kenaikan akumulasi kerugian usaha pada tahun 2017.

Arus Kas

Laporan arus kas Konsolidasian menyajikan perubahan dalam kas dan setara kas dari aktivitas operasi, investasi dan pendanaan dan di susun dengan metode langsung.

Arus kas dari aktivitas operasi turun dari Rp. 25.238.536.021 ditahun 2016 menjadi Rp. (17.868.868.446) ditahun 2017, hal ini disebabkan karena adanya penurunan penjualan di tahun 2017 dibandingkan tahun 2016 dan berdampak pada penerimaan kas dari pelanggan.

Arus kas dari aktivitas investasi turun dari Rp. (46.051.185.658) ditahun 2016 menjadi Rp.(6.707.591.954,-) ditahun 2017. Hal ini disebabkan oleh penurunan pembelanjaan terhadap asset tetap.

2. Kebijakan Dividen

Seluruh saham Perseroan yang telah ditempatkan dan disetor penuh oleh pemegang saham memiliki hak suara yang sama dan sederajat, termasuk hak atas pembagian dividen. Pembayaran dividen harus disetujui oleh pemegang saham dalam Rapat Umum Pemegang Saham Tahunan berdasarkan usulan Direksi. Direksi dapat mengubah kebijakan dividen sewaktu-waktu dan harus disetujui oleh Rapat Umum Pemegang Saham.

Sesuai dengan peraturan perundang-undangan di Indonesia dan Anggaran Dasar Perseroan, pembayaran dividen harus disetujui oleh pemegang saham dalam Rapat Umum Pemegang Saham Tahunan sesuai dengan rekomendasi Direksi berdasarkan kinerja tahunan perseroan.

Perseroan bermaksud untuk membagikan dividen tunai kepada seluruh pemegang saham sekurang-kurangnya sekali dalam setahun, tergantung pada kondisi finansial Perseroan dalam tahun berjalan, serta dikaitkan juga dengan rencana perseroan di masa yang akan datang, tanpa mengurangi hak Rapat Umum Pemegang Saham untuk menentukan keputusan lainnya sesuai dengan ketentuan Anggaran Dasar Perseroan.

and employee benefit increased by IDR 26,287,333,708 and taxed payable, accrued expenses and deffered tax liabilities decreased by IDR 25,053,980,669 from 2016.

Total equity in 2017 decreased by 6% from 2016 to IDR 1,426,730,296,840 due to increased of accumulated loss in 2017.

Cash Flows

The consolidated statement of cash flows presents the changes in cash and cash equivalents from operating, investing and financing activities, and is prepared using the direct method.

Cash flow for operating activities decreased from IDR 25,238,536,021 in 2016 to IDR (17.868.868.446) in 2017, resulting from decreased sales in 2017 compared to 2016 and impacted to cash received from customers.

Cash flow for investing activities decreased from IDR (46,051,185,658) in 2016 to IDR (6,707,591,954) in 2017. This is due to decreased in spending on Fixed Asset.

2. Dividend Policy

All company’s shares which has been issued and fully paid by shareholders have equal rights, including the rights for dividend payment. Dividend payment must be approved by shareholders in the Annual General Meeting of Shareholders based on Board of Director’s recommendation. Board of Directors able to change the dividend policy any time and must be approved by the General Meeting of Shareholders.

According to Indonesia regulation and Articles of Association of the Company, dividend payment must be approved by shareholders in the Annual General Meeting of Shareholders based on Board of Directors’ recommendation depending on the annual performance of the Company.

Company plans to pay dividend to all shareholders at least once a year, depending on the Company’s financial performance of the current year, as well as its future plans; without lessening the rights of General Meeting of Shareholders to make other decision that is aligned with requirements stated in the Company’s Articles of Association.

Analisis dan Pembahasan Manajemen


3. Product Information

The development of Indonesia property and infrastructure, encourage growth of domestic ceramic product, such as wide selection of size, motive, texture and color for ceramic floor and wall tile, and wider options for type and color of roofing tiles. To guarantee quality of product and level of customer satisfaction, KIA did certification by International Standard (ISO 13006: 2003) and other international standards such as Indonesia National Standard (SNI), Standards and Industrial Research Institute of Malaysia (SIRIM), Philippine Standard (PS), and Thailand Industrial Standard (TIS), hence its quality and satisfaction is guaranteed.

KIA

KIA brand is used for all products produced by the Company, such as floor tile, wall tile and roofing tile; with the target market medium to high segment. In 2014, at Keramika Exhibition, KIA launched the new collection named ‘KIA HD’ by digital printing technology. Some advantages of this product are motive is printed fully in the surface and resulted in more natural look and close to the originals with 9 random face. In 2017, KIA continues to expand its collection by launching new sizes for wall and floor tile. As the first ceramic producer in Indonesia, KIA brand is well known in domestic and international market for its quality, service, and design variety as it continuously follow market trend. KIA product is distributed nationwide and internationally.

Impresso

Impresso brand is a sub-brand of KIA, and is targeted for the medium low segment. Impresso brand carries 2 types of product produced by the Company, i.e. floor tile and wall tile. In terms of price, Impresso product is more affordable compared to KIA and similar to KIA, it is distributed nationwide and internationally as well.

KIA Roof

KIA roofing tile is made from good quality ceramic, and produced according to the international standard guidelines. A variety of colour option is available to suit with our customers’ taste. Its quality and satisfaction is guaranteed. In the early 2018, Company launched new logo for KIA Roof Tile product.

3. Informasi Produk

Perkembangan sektor properti dan infrastruktur di Indonesia turut mendorong perkembangan produk keramik yang dihasilkan di dalam negeri, diantaranya tersedianya beragam ukuran, motif, tekstur dan warna untuk produk ubin keramik lantai dan dinding, serta beberapa pilihan tipe dan warna untuk produk genteng keramik. Untuk menjamin kualitas produk dan tingkat kepuasan pelanggan, KIA melakukan sertifikasi dengan Standar Internasional (ISO 13006: 2003) dan standar internasional lainnya seperti Standar Nasional Indonesia (SNI), Standards and Industrial Research Institute of Malaysia (SIRIM), Philippine Standard (PS), dan Thailand Industrial Standard (TIS).

KIA

Merek KIA digunakan pada semua produk yang dihasilkan Perusahaan, seperti ubin keramik lantai, ubin keramik dinding dan atap keramik genteng; dengan target pasar untuk segmen menengah ke atas. Pada tahun 2014, tepatnya pada Pameran Keramika, KIA mengeluarkan koleksi terbarunya dengan nama ‘KIA HD’ yang menggunakan teknologi Digital Printing. Adapun beberapa keunggulan produk ini adalah motif yang dihasilkan terlihat lebih natural dan mendekati aslinya dengan 9 motif acak dan desain motif tercetak sampai ke seluruh permukaan keramik. Di tahun 2017, KIA terus mengembangkan koleksinya dengan mengeluarkan ukuran baru, baik untuk keramik dinding maupun lantai. Sebagai produsen keramik pertama di Indonesia, merek KIA telah dikenal di pasar domestik maupun internasional untuk kualitas dan pelayanannya, serta beragam desain dan motifnya yang senantiasa mengikuti tren pasar. Produk KIA didistribusikan secara nasional maupun internasional.

Impresso

Merek Impresso adalah sub-merek KIA, dan ditargetkan untuk segmen menengah ke bawah. Merek Impresso membawahi 2 jenis produk yang dihasilkan oleh Perusahaan, yaitu ubin lantai dan ubin dinding. Dari segi harga, produk Impresso memiliki harga yang lebih terjangkau dibandingkan dengan produk KIA dan seperti halnya dengan produk KIA, produk Impresso juga didistribusikan secara nasional dan internasional.

KIA Roof

Atap keramik KIA terbuat dari bahan keramik berkualitas baik, dan diproduksi sesuai dengan Pedoman Standar Internasional. Berbagai pilihan warna tersedia sesuai dengan selera pelanggan. Kualitas dan kepuasan pelanggan dijamin. Diawal tahun 2018, Perseroan mengeluarkan logo baru untuk produk genteng KIA.



4. Pengawasan Kualitas Produk

Untuk memperoleh mutu produk yang prima, Perseroan melaksanakan prosedur pengawasan kualitas / mutu pada setiap tahapan produksi secara konsisten dimulai sejak dari pengadaan bahan baku sampai dengan pengepakan hasil jadi.

Pemeriksaan dan pengujian mutu sesuai dengan standar Nasional maupun Internasional seperti Standar Nasional Indonesia (SNI), SIRIM (Malaysia) dan PS Mark (Filipina) yang kesemuanya merujuk pada ISO 13006:series dengan metode pengujian ISO 10545: series. Untuk memastikan kembali bahwa kualitas produk kami sesuai dengan kualitas standard yang ditetapkan dan memberikan jaminan kepada pelanggan maka kami melakukan kembali pengujian mutu produk jadi secara sampling sebelum dikirim ke distributor kami, antara lain meliputi:• Persyaratan dimensi dan mutu permukaan.• Persyaratan sifat-sifat fisik• Persyaratan sifat-sifat kimia

5. Penelitian dan Pengembangan Produk

Penelitian dan pengembangan produk merupakan bagian yang sangat penting bagi Perseroan terutama dikarenakan pasar yang semakin kompetitif, teknologi dan permintaan pelanggan yang senantiasa berubah seiring dengan kemajuan teknologi. Untuk dapat menciptakan produk-produk yang menarik dan mampu memenuhi permintaan pasar, Perseroan memiliki sarana, prasarana dan peralatan laboratorium industri keramik yang lengkap, serta didukung oleh tenaga ahli berpengalaman.

Dengan fokus pada kepuasan pelanggan, Perseroan selalu berusaha untuk memenuhi permintaan pelanggan dengan cara:• Menyediakan produk berkualitas dan ramah lingkungan

yang diproduksi dengan teknologi terkini dan penggunaan energi yang lebih efisien, sehingga harga menjadi lebih bersaing dan meningkatkan daya saing Perseroan.

• Menyediakan produk dengan ukuran, motif (design) dan warna sesuai dengan kecenderungan permintaan pasar.

• Mengefisienkan komposisi massa maupun glazur namun kualitas produk tetap terjaga dan biaya produksi menjadi lebih efisien.

• Mencari alternatif bahan baku dengan harga yang lebih kompetitif, kualitas yang terjaga baik /konsisten.

6. Prospek Usaha

Seiring dengan bertumbuhnya perekonomian Indonesia, sektor properti juga mengalami pertumbuhan. Didukung dengan stabilitas kondisi politik, ekonomi, dan sosial, serta peningkatan daya beli masyarakat, permintaan terhadap keramik sebagai salah satu unsur bahan bangunan utama di sektor properti turut meningkat. Ekspektasi pertumbuhan pangsa pasar keramik Indonesia diperkirakan sekitar 10% per tahun pada 2018.

4. Product Quality Control and Inspection

To obtain excellent product quality tiles, we implement quality control procedures at every stage of production consistently starting from raw material preparation until packing of finished products.

Quality control and final Inspection is in accordance with National and International standards such as Indonesian National Standard (SNI), SIRIM (Malaysia) and PS Mark (Philippines) all of which refer to ISO 13006: series with ISO 10545: series as test method. To reassure that quality of our products conforms to the quality of established standards and guarantees to our customers, we do re-inspection to the quality of the finished product by sampling before being sent to our distributors, including:

• Dimension and surface quality requirements.• Physical properties requirements• Chemical properties requirements

5. Product Research and Development

Product research and development is a vital element for Company, especially due to more competitive market, technology advancement and dynamic changes of customer preferences. To develop beautiful tiles and to meet market demand, Company invests in facilities and laboratory tools, also professionals employees.

Focusing on customer satisfaction, the Company manages to meet customer requirements through:• Provide high quality and environmentally friendly product,

produced with up-to-date technology and energy efficiency, resulted in competitive product price and increase of Company’s competitiveness.

• Develop product with size, motives (design) and colours that addresses market demand.

• Streamline the composition of mass and glaze to maintain product quality and reduction in production cost.

• Find alternative raw materials with better price, consistent and good quality.

6. Business Prospect

Indonesia property sector grow along with the Indonesian economy. Supported with the stability in politic, economy and social condition, and increase of customers’ purchasing power, demand for ceramic tile as one of the main building materials element in property sector grew as well. Growth expectation for Indonesia ceramic market is about 10% annually for 2018.



Termasuk dalam 10 besar produsen keramik di Indonesia, Perseroan dan Entitas Anak merupakan salah satu pemimpin di pasar keramik Indonesia dengan kapasitas dan ragam produk yang ada, serta merek yang sudah dikenal baik masyarakat dan cakupan jaringan distribusi dan pemasaran yang luas.

Masuknya SCG Building Materials Co., Ltd. yang merupakan perusahaan manufaktur bahan bangunan terbesar di Thailand, sebagai pemegang saham utama Perseroan pada bulan Juni 2011 makin menguatkan teknologi produksi Perseroan dan kemampuan desain produk.

Untuk memperkuat merk KIA di masyarakat maka di tahun 2017, KIA mempromosikan tampilan dan slogan baru “Pioneer in Quality” karena dengan kualitas dan pelayanannya yang bagus akan membuat KIA menjadi pilhan utama di benak pelanggan.

7. Strategi Usaha

• Dalam menghadapi persaingan di industri keramik, Perseroan akan fokus pada pengembangan produk-produk yang memiliki nilai tambah (HVA products), terutama KIA HD, dengan sasaran pasar untuk segmen menengah ke atas.

• Untuk meningkatkan daya saing dan daya tarik pembeli, Perseroan fokus pada keindahan desain produk, dengan tetap menjaga kualitasnya.

• Untuk meningkatkan volume penjualan, Perseroan memperkuat jaringan distribusi, meningkatkan kualitas, memberikan banyak pilihan motif, tekstur dan warna, menerapkan program promosi penjualan tahunan dalam berbagai cara, dan mempromosikan ukuran yang lebih besar sesuai dengan kecenderungan permintaan pasar sehingga pembeli memiliki beragam pilihan ukuran sesuai dengan yang diperlukannya.

• Dari sisi produksi, penerapan program pengurangan biaya produksi diantaranya dilakukan dengan cara merekondisi mesin, yang bertujuan untuk meningkatkan efisiensi produksi dan laba operasi.

• Untuk memberikan produk terbaik yang ramah lingkungan bagi konsumen, Perseroan menerapkan proses produksi terbaik dan meningkatkan investasi di bidang teknologi produksi, serta penelitian dan pengembangan.

• Mengembangkan kompetensi karyawan dan menerapkan Total Quality Management (TQM), serta pendekatan pemecahan masalah dalam semua fungsi;

Included in the top 10 ceramic producers in Indonesia, the Company and its subsidiaries is one of the leaders in Indonesia ceramic market with the existing capacity and product variety, added with a well-known brand and wide distribution network.

The entry of SCG Building Materials Co., Ltd. - the largest building materials producer in Thailand on June 2011 as the majority shareholders of the Company strengthened the Company’s production technology and its ability to design variety of beautiful product design.

To strengthen KIA brand awareness di market, in 2017 KIA promote new image and slogan “ Pioneer in Quality”, because we believe that good quality product and service will take KIA to become the top brand in end user’s mind.

7. Business Strategy

• To stay competitive in the ceramic industry, the Company focuses on developing High Value Added (HVA) products, especially KIA HD with the target market for medium to high segment.

• To increase competitiveness and attract customers, the Company also focuses on developing beautiful product design and maintaining its quality.

• To increase sales volume, Company strengthen distribution network, improve quality, enlarge options with various choice of motives, textures and colors, implement annual sales promotion program through various means, and promote larger sizes following the market trend, so customers have variety of size option according to their needs.

• From production, implementation of cost reduction program through machine reconditioning to increase production efficiency and operating profit.

• To deliver the best and environmentally friendly product for customer, Company applies the best production process and increase investment in production technology, and research and development.

• Develop employees’ competency and implement Total Quality Management (TQM) and problem solving approach in all functions;



8. Penghargaan

Tingkat Komponen Dalam Negeri ( TKDN )

Dalam rangka meningkatkan penggunaan barang hasil produksi dalam negeri terkait pengadaan barang/jasa pemerintahan merujuk pada Undang Undang No.3 Tahun 2014, Instruksi Presiden No.2 Tahun 2009 dan Peraturan Menteri Perindustrian RI No.2 Tahun 2014 maka pada tanggal 1 Nopember 2017, kami telah mendapatkan Sertifikat TKDN atau Tanda Sah Capaian Tingkat Komponen Dalam Negeri dari Kementerian Perindustrian Republik Indonesia dan verifikasi telah dilakukan oleh PT.Surveyor Indonesia untuk ketiga perusahaan kita:

1. PT Keramika Indonesia Assosiasi Tbk• Sertifikat : 399/IKTA/TKDN/11/2017• Sertifikat : 400/IKTA/TKDN/11/2017• Sertifikat : 401/IKTA/TKDN/11/2017

2. PT KIA Serpih Mas• Sertifikat : 404/IKTA/TKDN/11/2017 • Sertifikat : 405/IKTA/TKDN/11/2017 • Sertifikat : 406/IKTA/TKDN/11/2017 • Sertifikat : 407/IKTA/TKDN/11/2017

3. PT KIA Keramik Mas• Sertifikat : 409/IKTA/TKDN/11/2017• Sertifikat : 411/IKTA/TKDN/11/2017 • Sertifikat : 412/IKTA/TKDN/11/2017


8. Award

Manufactured Local Content Level (TKDN)

In order to increase the use of domestic products related to the procurement of government goods / services referring to Law No.3 Year 2014, Presidential Instruction No.2 Year 2009 and Regulation of the Minister of Industry of the Republic of Indonesia No.2 Year 2014, then on 1 November 2017 we have obtained TKDN Certificate or Legal Sign of Achievement of Domestic Component Level from the Ministry of Industry of the Republic of Indonesia and verification has been done by PT.Surveyor Indonesia for our three companies:

1. PT Keramika Indonesia Assosiasi Tbk• Sertifikat : 399/IKTA/TKDN/11/2017• Sertifikat : 400/IKTA/TKDN/11/2017• Sertifikat : 401/IKTA/TKDN/11/2017

2. PT KIA Serpih Mas• Sertifikat : 404/IKTA/TKDN/11/2017 • Sertifikat : 405/IKTA/TKDN/11/2017 • Sertifikat : 406/IKTA/TKDN/11/2017 • Sertifikat : 407/IKTA/TKDN/11/2017

3. PT KIA Keramik Mas• Sertifikat : 409/IKTA/TKDN/11/2017 • Sertifikat : 411/IKTA/TKDN/11/2017 • Sertifikat : 412/IKTA/TKDN/11/2017

Sertifikat TKDNPT Keramika Indonesia Assosiasi Tbk

Sertifikat TKDN PT.KIA Serpih Mas Sertifikat TKDN PT.KIA Keramik Mas


Program Penilaian Peringkat Kinerja Perusahaan (PROPER)

Untuk menunjukkan peningkatan ketaatan perusahaan kita dalam pengelolaan lingkungan hidup, pada tahun 2017 ini merupakan tahun ketiga bagi PT.KIA Keramik Mas yang berlokasi di Cileungsi Bogor mampu mempertahankan Peringkat Biru secara berturut-turut yang ditetapkan dalam Keputusan Menteri Lingkungan Hidup dan Kehutanan Republik Indonesia No. 696/Menlhk/Setjen/Kum.1/12/2017 tertanggal 15 Desember 2017. Sementara itu, PT Keramika Indonesia Assosiasi Tbk yang berlokasi di Karawang untuk pertama kalinya ditahun ini juga mampu mendapatkan pengakuan dari Dinas Lingkungan Hidup Jawa Barat berupa Sertifikat Properda Jabar 2016-2017 tertanggal 20 Desember 2017.

Programe for Environmental Performance Company Rating

To show the improvement of our Company’s obedience in environmental management, in 2017 it is the third year of PT.KIA Keramik Mas located in Cileungsi Bogor able to maintain the Blue Rank in a row as stipulated in Decree of the Minister of Environment and Forestry of the Republic of Indonesia No. 696 / Menlhk / Setjen / Kum.1 / 12/2017 dated 15 December 2017. Meanwhile, PT Keramika Indonesia Assosiasi Tbk located in Karawang for the first time this year able to get recognition from West Java Environmental Office in the form of Certificate Jabar Properda 2016-2017 dated 20 December 2017.


9. Sumber Daya Manusia

Sumber daya manusia yang berkualitas merupakan salah satu modal penting bagi keberlangsungan Perseroan, dan selaras dengan filosofi usaha SCG (Siam Cement Group) yaitu kepatuhan terhadap keadilan, dedikasi kepada keunggulan, keyakinan pada nilai individu dan kepedulian terhadap tanggung jawab sosial. Perseroan giat melaksanakan pelatihan dan pengembangan di segala bidang, terutama di bidang keselamatan, baik secara internal maupun eksternal untuk meningkatkan kualitas, kompetensi dan keterampilan sumber daya manusia.

9. Human Resources

Human resources quality is one of the Company’s most important capitals to ensure continuity of the Company; and in line with SCG (Siam Cement Group) business philosophy, i.e. adherence to fairness, dedication to excellence, belief in the value of individual, and concern for social responsibility. Company actively held trainings in all field, especially for safety, either internally or externally to improve the quality, competency and skill of the human resources.

Sertifikat PROPER untuk PT.KIA Keramik MasCileungsi-Bogor :

Sertifikat PROPERDA untuk PT.Keramika Indonesia Assosiasi,Tbk Karawang :

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Sepanjang tahun 2017, Perseroan melaksanakan berbagai kegiatan pelatihan dan pengembangan sumber daya manusia, diantaranya Ms. Excel for Accounting, 7 Abnormalities, HR For Non HR, English Class for Conversation, Presentation Skill, 5R, Bolt & Nut, PLC, Refreshment QC, Emergency Response Plan, Pengolahan Limbah B3, Fire-fighter, Abridged Business Concept, Leadership Development Program, Supervisory Skill, Business Concept Developmet, Train the Trainer, dan lainnya.

In 2017, Company has done various trainings and development activities, such as Excel for Accounting, 7 Abnormalities, HR For Non HR, English Class for Conversation, Presentation Skill, 5R, Bolt & Nut, PLC, Refreshment QC, Emergency Response Plan, Waste treatment, Fire-fighter, Abridged Business Concept, Leadership Development Program, Supervisory Skill, Business Concept Developmet, Train the Trainer, etc.

Training Activity

Sedangkan untuk menunjang kesejahteraan karyawan, Perseroan memberikan tunjangan dan fasilitas, antara lain berupa:

• Fasilitas klinik atau penggantian biaya pengobatan, dan asuransi kesehatan

• Fasilitas makan berupa kantin atau uang makan • Fasilitas antar jemput atau pemberian uang transport • Fasilitas ibadah, olahraga dan rekreasi • Lingkungan kerja yang sehat • Jaminan sosial tenaga kerja (Jamsostek) • Koperasi karyawan • Penghargaan masa kerja

Di tahun 2017, Perseroan menerapkan Kebijakan Berkelanjutan terutamanya keselamatan karyawan. Perseroan berkomitmen untuk turut menerapkan safety policy SCG, yakni penerapan 9 Life Saving Rules (LSR). Keselamatan seluruh karyawan dan kontraktor merupakan aspek terpenting dalam menjalankan bisnis di SCG Cement-Building Materials, terutama pada area dengan tingkat risiko kecelakaan tinggi atau fatal. Life Saving Rules adalah aturan keselamatan. Perusahaan membantu mengembangkan dasar untuk menanamkan pola pikir

Meanwhile, to support employees’ welfare, Company provides benefit and facility such as:

• Clinic facility or reimbursement of medical expenses, and health insurance

• Canteen facility or meal allowance• Pick-up and delivery facility or transport allowance• Praying, sports and recreation facility• Healthy working environment• Social security • Cooperation• Service year award

In 2017, Company implemented SCG’s Sustainable Policy especially for the safety of all employees. Company have the commitment to implement SCG Safety Policy, i.e. 9 Life Saving Rules (LSR). Safety of all employees and contractors is the most important aspect of running a business in SCG Cement-Building Materials, especially in areas with high or fatal accident risk. Life Saving Rules are the rule to survive. Company assists in developing the mindset for safety awareness and behaviour to create a safety culture in the


Rule 5 Laksanakan pekerjaan dengan izin kerja yang sah/sudah disetujui, apabila diperlukan. Work with a valid work permit and obtain authorization when required.

Rule 6

Dilarang mengkonsumsi minuman beralkohol atau zat aditif sebelum atau ketika bekerja, mengemudikan kendaraan bermotor atau mengendarai sepeda motor Refrain from drinking alcoholic beverages or using addictive substances prior to or while working, driving a motor vehicle or riding a motorcycle.

Rule 7 Gunakan sabuk pengaman ketika melakkendaraan bermotor. Wear a safety belt when traveling in a motor vehicle.

Rule 8 Gunakan helm pelindung ketika mengendarai sepeda motor Wear a safety helmet when riding a motorcycle.

Rule 9

Dilarang menggunakan telepon seluler tanpa perangkat hands-free ketika mengemudikan kendaraan bermotor atau mengendarai sepeda motor. Refrain from using mobile phone without hands-free device while driving a motor vehicle or riding a motorcycle.

Rule 10 Dilarang memarkir truk di tepi jalan Do not park on the road shoulder or beside of road.

Rule 1

Gunakan alat pelindung jatuh saat bekerja di ketinggian lebih dari 1.8 meter. Use fall protection equipment when working outside a protective environment where one can fall from height over 1.8 meters.

Rule 2 Matikan suplai listrik dan sumber energy lain dan gunakan sistem lockout/ tagout. Cut off electricity supply and energy sources and use lockout/tagout system.

Rule 3

Mendapat persetujuan sebelum mematikan peralatan keselamatan atau sistem keselamatan. Obtain authorization before overriding or disabling safety equipment or safety system.

Rule 4Mendapat persetujuan sebelum memasuki ruang terbatas. Obtain authorization before entering a confined space.

Setiap Karyawan yang melakukan pelanggaran atau tidak mematuhi peraturan tersebut akan dikenai sanksi kedisiplinan. Setiap kontraktor yang melanggar atau tidak mematuhi aturan tersebut akan dikenai sanksi kedisiplinan pihak tera�liasi terkait.

PERATURAN KESELAMATAN UTAMA( LIFE SAVING RULES)

sadar keselamatan dan perilaku untuk menciptakan budaya keselamatan dalam perusahaan dengan meliputi keselamatan baik di tempat kerja maupun di jalan. Oleh karena itu, Life Saving Rules berikut ini wajib dipraktekkan dengan saksama oleh seluruh karyawan dan kontraktor:

company which cover safety in the workplace and on the street. Therefore, the following Life Saving Rules are to be practiced thoroughly by all employees and contractors:


KIA Plant Cileungsi Division, 5 April 2018


Tata KelolaPerseroanCorporate Governance

Tata kelola perseroan yang baik diwajibkan dalam kegiatan operasional Perseroan dan dilaksanakan oleh Rapat Umum Pemegang Saham (RUPS), Dewan Komisaris, Direksi, Komite, Sekretaris Perseroan, dan Internal Audit.

Seluruh entitas tersebut mempunyai tugas, fungsi, wewenang, dan tanggung jawab masing-masing sesuai dengan pedoman dan prinsip-prinsip tata kelola perseroan yang baik.

1. Pemegang Saham

Rapat Umum Pemegang Saham merupakan komponen penting dari Perseroan yang memiliki kewenangan dalam mengambil keputusan, memberikan persetujuan sesuai dengan peraturan perundangan yang berlaku dan Anggaran Dasar Perseroan :

a. Mengevaluasi kinerja Dewan Komisaris dan Direksi

b. Menentukan atau mengubah Anggaran Dasar Perseroanc. Menyetujui laporan dan menentukan auditor eksternal

Perseroand. Menentukan remunerasi Dewan Komisaris dan Direksi,

dane. Membuat keputusan mengenai tindakan korporasi, dan

transaksi yang memiliki benturan kepentingan.

Good corporate governance is required to the operational activities of the Company and implemented by General Meeting of Shareholders (GMS), Board of Commissioners, Board of Directors, Committees, Corporate Secretary and Internal Audit.

The entire entities have the duties, functions, powers, and responsibilities of each in accordance with the guidelines and principles of good corporate governance.

1. Shareholders

General Meeting of Shareholders is an important component of the Company which has the authority in making decision, giving an approval according to the applicable laws, regulations and Articles of Association :

a. Evaluate work of the Board of Commissioners and the Board of Directors

b. Determine the Articles of Association of the Companyc. Approve the report and determine external auditors of the

Companyd. Determine remuneration of the Board of Commissioners

and Board of Directors ande. Make decisions on corporate actions and transactions

having conflicts of interest.

Sebagai Perseroan Publik, penerapan tata kelola perseroan yang baik merupakan suatu nilai penting dalam lingkungan Perseroan. Oleh karena itu perseroan secara konsisten terus melakukan pembaharuan

standar – standar pengarahan dan pengelolaan untuk memastikan bahwa prinsip tata kelola perseroan tersebut sesuai dengan peraturan, kebijakan dan etika di lingkungan Perseroan.

As a public company, implementation of good corporate governance is an important value in the corporate environment. The Company is consistently updating its standards of direction and control to ensure these principles are in line with the legal and ethical environment in the Company.


Di tahun 2017, para pemegang saham telah melaksanakan 2 (dua) kali Rapat Umum Pemegang Saham, yaitu Rapat Umum Pemegang Saham Tahunan dan Rapat Umum Pemegang Saham Luar Biasa, yang keduanya dilaksanakan pada tanggal 16 Juni 2017.

2. Dewan Komisaris

Dewan Komisaris terdiri atas anggota Komisaris dan Komisaris Independen yang dipilih dan diangkat oleh Rapat Umum Pemegang Saham (RUPS). Dewan Komisaris melaksanakan tugasnya antara lain sebagai berikut:

a. Melakukan penilaian kinerja Direksi berdasarkan pada pencapaian Key Performance Indicator (KPI)

b. Mengawasi operasional Perseroan yang dilakukan oleh Direksi dan memberikan persetujuan terhadap rencana kerja, perencanaan strategis jangka panjang dan anggaran tahunan Perseroan, serta penerapan anggaran rumah tangga

c. Menelaah laporan-laporan yang diberikan oleh Direksi maupun komite-komite

d. Menyiapkan dan menyampaikan rekomendasi atas temuan-temuan dari laporan komite-komite kepada Direksi, dan

e. Memberikan penilaian kinerja direksi.

Pada tahun 2017, dalam rangka melaksanakan tugasnya, Dewan Komisaris telah melakukan rapat Dewan Komisaris secara rutin, disamping Rapat Rutin Dewan Komisaris dengan Komite Audit Perseroan dan juga dengan Direksi yang melibatkan dan dihadiri oleh seluruh Anggota Dewan Komisaris.

In 2017, the shareholders have conducted 2 (two) General Meeting of Shareholders, i.e. the Annual General Meeting of Shareholders and Extraordinary General Meeting of Shareholders, both were conducted on 16 June 2017.

2. Board of Commissioners

Board of Commissioners consists of Commissioners and Independent Commissioners selected and appointed by the General Meeting of Shareholders (GMS). The Board of Commissioners has duties as follows:

a. Conduct performance assessment of the Board of Directors based on the achievement of Key Performance Indicators (KPI)

b. Supervise the Company’s operations conducted by the Board of Directors and approve the working plan, long-term strategic plan and annual budget of the Company, and the application of household budgets

c. Review reports given by the Board of Directors and Committees

d. Prepare and submit recommendations on the findings from committees’ report to Board of Directors, and

e. Provide performance assessment of the Board of Directors.

In 2017, in order to carry out their duties, the Board of Commissioners held regular meetings, aside of the regular meetings with the Audit Committee and Board of Directors of the Company which involved and attended by all Members of the Board of Commissioners.

Latvia Series

Tata Kelola Perseroan


Untuk menunjang pelaksanaan fungsi, tugas dan wewenangnya, Dewan Komisaris memperoleh gaji dan imbalan yang ditentukan oleh Rapat Umum Pemegang Saham (RUPS). Pada tanggal 16 Juni 2017 Rapat Umum Pemegang Saham Tahunan telah menyetujui remunerasi Dewan Komisaris untuk tahun 2017 yakni sebesar Rp. 600.000.000,-

Selama tahun 2017, Dewan Komisaris telah mengadakan 6 (enam) kali rapat dengan tingkat kehadiran masing-masing anggota sebagai berikut:

To support the implementation of the functions, duties and responsibilities, Board of Commissioners has been paid and received benefits as determined by the Annual General Meeting of Shareholders (AGMS). AGMS on 16 June 2017 approved the remunerations and benefits for the Board of Commissioners in 2017 of IDR 600,000,000,-

During 2017, Board of Commissioners held 6 (six) meetings with the following attendance rate from each member:

Peserta MeetingMeeting Participant

JabatanPosition

Jumlah RapatMeeting Frequency

KehadiranAttendance

Presentase tingkat Kehadiran

Attendance PercentageAree Chavalitcheewingul Komisaris Utama

President Commissioner6 6 100%

Surasak Kraiwitchaicharoen KomisarisCommissioner

6 6 100%

Nantapong Chantrakul KomisarisCommissioner

6 6 100%

Kittiphong Photaranon KomisarisCommissioner

6 6 100%

Padung Likitsajjakul Komisaris Commissioner

6 6 100%

Thanarak Silavanich Komisaris Commissioner

6 6 100%

Tabel Tingkat Kehadiran Rapat Dewan Komisaris Attendance Rate Table of Board of Commissioners Meeting

3. Direksi

Direksi bertanggung jawab untuk memimpin dan mengatur penyusunan strategi dan kebijakan untuk pengelolaan operasional perseroan.

Rapat Direksi dilaksanakan setiap bulan dengan dihadiri minimal oleh ¾ orang anggota Direksi dan notulen rapat dilaporkan kepada Dewan Komisaris. Disamping Rapat Internal Direksi, juga dilaksanakan rapat gabungan antara Dewan Direksi dan Dewan Komisaris. Rapat-rapat Direksi dilaksanakan dengan beragam agenda sehubungan dengan kebijakan, operasional dan realisasi pelaksanaan operasional di lapangan baik mengenai produksi, strategi market, perencanaan CSR, evaluasi penjualan, dan hal-hal lain yang memerlukan keputusan atau rekomendasi dari Direksi.

Besarnya remunerasi yang diterima oleh Direksi ditentukan oleh Rapat Umum Pemegang Saham (RUPS) tahunan. Pada tanggal 16 Juni 2017, sebagaimana direkomendasikan oleh Dewan Komisaris sebesar Rp.8.064.355.217,-.

3. Board of Directors

Directors are responsible to lead and set up the Company’s strategy and policy to manage day-to-day operations.

Board of Directors’ Meetings were held monthly with attendance of at least ¾ of the Members of the Board of Directors. The minutes of meetings of the Board of Directors were reported to the Board of Commissioners. Besides the Board of Directors’ Meeting, there is also joint meetings between the Board of Directors and the Board of Commissioners. The Board of Directors’ meetings considered various agendas on policies, operations and realization of operations in the field of production, strategic market planning, CSR, sales evaluation, and other matters required decision or recommendation of the Board of Directors.

The remunerations and benefits received by the Board of Directors was determined by the Annual General Meeting of Shareholders (AGMS) on 16 June 2017 as recommended by the Board of Commissioners at IDR 8,064,355,217.




JabatanPosition


KehadiranAttendance


Attendance PercentageNumpol Malichai Direktur Utama

President Director12 12 100%

Chalermchai Chirasakyakul DirekturDirector

12 12 100%

Susalak Khiew-Orn DirekturDirector

12 12 100%

Kaewsawan Amatachiwin DirekturDirector

7 7 100%

Chaovalit Nieamtad DirekturDirector 6 6 100%

Sarawut Worawat DirekturDirector 12 12 100%

Anusart Meethong DirekturDirector 6 6 100%

Handono Warih Direktur IndependenIndependent Director 12 12 100%


JabatanPosition


KehadiranAttendance


Attendance Percentage

Aree Chavalitcheewingul Komisaris UtamaPresident Commissioner

3 3 100%

Surasak Kraiwitchaicharoen Komisaris - Commissioner 3 3 100%

Nantapong Chantrakul Komisaris - Commissioner 3 3 100%

Kittiphong Photaranon Komisaris - Commissioner 3 3 100%

Padung Likitsajjakul Komisaris - Commissioner 3 3 100%

Thanarak Silavanich Komisaris - Commissioner 3 3 100%

Numpol Malichai Direktur UtamaPresident Director

3 3 100%

Chalermchai Chirasakyakul Direktur - Director 3 3 100%

Susalak Khiew-Orn Direktur - Director 3 3 100%

Kaewsawan Amatachiwin Direktur - Director 1 1 100%

Chaovalit Nieamtad Direktur - Director 1 1 100%

Sarawut Worawat Direktur - Director 3 3 100%

Anusart Meethong Direktur - Director 2 2 100%

Handono Warih Direktur IndependenIndependent Director

3 3 100%

Tabel Tingkat Kehadiran Rapat Gabungan Dewan Komisaris dan DireksiAttendance Rate Table for Joint Meeting of Board of Commisioners & Board of Directors

Berikut jumlah kehadiran anggota Direksi pada rapat yang diselenggarakan selama tahun 2017, adalah sebagai berikut:

Below is the attendance rate of Board of Directors for meetings held during the year 2017:


Informasi tabel diatas berlaku untuk periode Jan – Des 2017. Ibu Kaewsawan Amatachiwin dan Bapak Chaovalit Nieamtad diberhentikan dengan hormat dari jabatannya sebagai Direktur efektif per tanggal 1 Agustus 2017 dan 1 Juli 2017. Sedangkan Mr.Anusart Meethong mulai menjabat sebagai Direktur sejak 1 Juli 2017.

The above table shows information for the period of Jan-Dec 2017. Ms. Kaewsawan Amatachiwin and Mr.Chaovalit Nieamtad were honourably dismissed from the Company’s Directorship effective on 1 August 2017 and 1 July 2017. Mr.Anusart Meethong Directorship starts from 1 July 2017 onwards.


4. Komite-komite

4.1. Komite Audit

Komite Audit membantu Dewan Komisaris dalam pengawasan terhadap proses laporan keuangan, sistem pengendalian internal dan proses audit, yang dilakukan oleh Internal maupun Eksternal Auditor, kepatuhan Perseroan terhadap seluruh peraturan perundang-undangan yang berlaku serta pelaksanaan tata kelola perseroan yang baik. Komite Audit bertanggung-jawab dalam melaksanakan tugas-tugasnya, sebagai berikut:

1. Menelaah informasi keuangan yang dikeluarkan Perseroan kepada publik dan/atau pihak otoritas antara lain laporan keuangan, proyeksi, dan laporan lainnya terkait dengan informasi keuangan

2. Menelaah ketaatan terhadap peraturan perundang-undangan yang berhubungan dengan kegiatan operasional sehari-hari

3. Menelaah pelaksanaan pemeriksaan oleh internal audit dan mengawasi pelaksanaan tindak lanjut temuan auditor internal oleh Direksi

4. Menelaah aktivitas pelaksanaan manajemen risiko yang dilakukan oleh Direksi, dan

5. Memberikan rekomendasi kepada Dewan Komisaris mengenai penunjukan Akuntan Publik yang didasarkan pada independensi, ruang lingkup penugasan, dan biayanya.

Susunan lengkap keanggotaan Komite Audit per tanggal 28 September 2012 berdasarkan Surat Pemberitahuan Perseroan kepada Bapepam dengan No.: 108/Srt.Corsec-KIA/09/12 tanggal 28 September 2012 adalah sebagai berikut:

a. Padung Likitsajjakul (Ketua)

Ketua Komite Audit dijabat oleh Komisaris Independen Perseroan, yaitu Padung Likitsajjakul yang berlatar belakang Master di bidang Public Administration dari National Institute of Development Administration Thailand. Saat ini beliau menjabat sebagai Chief Culture Officer di DT. Group of Companies Thailand.

b. Firdaus Erossen Simonli (Anggota)

Ditunjuk selaku anggota Komite Audit sejak tanggal 15 juli 2011, dengan latar belakang Sarjana Ekonomi di bidang Akuntansi dari Sekolah Tinggi Ilmu Ekonomi Indonesia tahun 1987 dan meraih gelar Akuntan melalui jalur UNA pada tahun 2003. Beliau mengawali karirnya sebagai Auditor pada KAP Drs. Subijanto Tjahjo & Co. (1979-1983) dan selanjutnya pada KAP Drs. Hadi Sutanto & Rekan (PW/PriceWaterhouse, yang sekarang dikenal sebagai PwC) (1983-1990). Kemudian

Committees

4.1. Audit Committee

Audit Committee assists Board of Commissioners in supervision of the financial reporting process, internal control system and audit by nternal and external Auditors, Company’s adherence to all applicable laws and regulation, and the implementation of good corporate governance. Audit Committee is responsible to carry out the following duties:

1. Review financial information issued by the Company to public and/or authorities such as financial reports, projections, and other statements relating to financial information

2. Review compliance with laws and regulations relating to the daily operations

3. Review the conduct of internal auditor and oversee the implementation of follow-up by Board of Directors on findings from internal auditors

4. Review the implementation of risk management activities undertaken by Board of DIrectors, and

5. Provide recommendations to the Board of Directors on appointment of Registered Public Accountant based on independence, scope of assignment and its fee.

Composition of the Audit Committee based on the Company’s Notice to Bapepam No.: 108 / Srt.Corsec-KIA / 09/12 dated 28 September 2012, as follows:

a. Padung Likitsajjakul (Chairman)

Audit Committee chaired by an Independent Commissioner of the Company, namely Padung Likitsajjakul, Master Degree in Public Administration from the National Institute of Development Administration of Thailand. He currently serves as a Chief Culture Officer at DT, Group of Companies in Thailand.

b. Firdaus Erossen Simonli (Member)

Appointed as member of the Audit Committee since 15 July 2011 with background Bachelor of Economics, majoring in Accounting from Indonesian Economic College in 1987 and holds the State Accountant Degree through the UNA in 2003. He began his career as an Auditor at Public Accountant Firm (KAP) Drs. Subijanto Tjahjo & Co. (1979-1983) and continued at KAP Drs. Hadi Sutanto & Rekan (PriceWaterhouse, now known as PriceWaterhouseCoopers/PwC) (1983-1990). Then have



menjabat sebagai Finance and Administration Manager pada PT Pulung Copper Works (1995-2000). Sejak tahun 2001- sekarang menjabat sebagai independen Konsultan Akuntansi dan Perpajakan.

c. Lamhot Lumban Tobing (Anggota)

Mulai menjabat sebagai anggota Komite Audit sejak tanggal 2 Juli 2012. Beliau menyelesaikan studinya pada tahun 1990 di Fakultas Ekonomi Jurusan Akuntansi Universitas Sumatera Utara, dan juga alumni Fakultas Hukum jurusan Hukum Bisnis dari Universitas Indonesia tahun 2002. Pada tahun 1991 sampai 2001 memulai karirnya pada PT MSA Kargo International (MSAS-Exel Group) sebagai Manager Accounting. Pernah menjabat sebagai Partner di kantor hukum “Irawan, Tobing & Osmar” dari tahun 2006 sampai 2008. Sejak tahun 2008 sampai sekarang beliau menjabat sebagai Managing Partners di kantor hukum Lamhot Tobing, Rahmadi & Partners.

Rapat Komite Audit dilaksanakan setiap 2 (dua) bulan sekali dihadiri sedikitnya 2/3 orang anggota serta auditor internal yang menjalankan tugas sesuai dengan penugasan dari Komite Audit. Pembahasan dalam rapat mengenai peraturan Perseroan, sistem pengendalian internal, menelaah laporan Audit internal dan eksternal.

Berikut adalah jumlah kehadiran anggota Komite Audit pada rapat yang diselenggarakan selama tahun 2017:

served as Finance and Administration Manager at PT Pulung Copper Works (1995-2000). Since 2001-now, have served as Professional Independent Accounting and Tax Consultant.

c. Lamhot Lumban Tobing (Member)

Appointed as member of the Audit Committee since 2 July 2012. Graduated with Accounting Degree from Economic Faculty, University of North Sumatera in 1990 and graduated from Law Faculty majoring in Business Law from University of Indonesia in 2002. He began his career as Accounting Manager in PT MSA Kargo International (MSAS-Exel Group) during 1991 to 2001. Previously, served as a Partner at law office Irawan, Tobing & Osmar from 2006 to 2008. Since 2008 until now he served as Managing Partners at the law office Lamhot Tobing, Rahmadi & Partners.

Audit Committee meetings are held once every two months and attended by at least 2/3 members as well as the internal auditor whose duties are assigned by the Audit Committee. Discussion in the meetings include Company’s rules, internal control system, review of Internal and external Audit’s report.

Below is the attendance rate of the members of Audit Committee for meetings held in year 2017:

Laporan Komite Audit

Komite Audit dibentuk oleh Dewan Komisaris untuk membantu dan memperkuat fungsi Dewan Komisaris dalam menjalankan fungsi pengawasan (oversight) atas:- Proses pelaporan keuangan- Manajemen resiko- Aktivitas pelaksanaan audit, dan- Implementasi Good Corporate Governance (GCG) di

perseroan.

Komite Audit telah melaksanakan kegiatannya sesuai dengan pedoman kerja yang termuat dalam Piagam Komite Audit.

Audit Committee Report

The Audit Committee is appointed by the Board of Commissioners to assist and support Board of Commissioners in carrying out its supervisory function related to:- Financial reporting process- Risk management- Auditing activities, and- Implementation of Good Corporate Governance (GCG) in

the Company.

Audit Committee has performed its activities in accordance with Audit Committee Charter. In implementing its duties, the



JabatanPosition


KehadiranAttendance


Attendance Precentage

Padung LikitsajjakulKetua Komite AuditChief of Audit Committee

6 4 60%

Firdaus Erossen SimonliAnggotaMember

6 6 100%

Lamhot Lumban TobingAnggotaMember

6 6 100%


Dalam pelaksanaan tugasnya, Komite Audit mendapat dukungan penuh dari Manajemen dan kerjasama dari internal audit, yang meliputi keterbukaan pelaporan keuangan, strategi pengelolaan resiko, independensi dari auditor internal dan eksternal, serta memastikan bahwa prinsip-prinsip GCG telah dijalankan oleh perseroan.

Komite Audit telah mendiskusikan dengan auditor external mengenai pelaksanaan hasil audit atas laporan keuangan, termasuk efektivitas pengendalian internal, temuan dan rekomendasi, manajemen risiko di area yang signifikan, dan keterbukaan informasi.

Berdasarkan kajian tersebut, sepanjang tahun 2017 Komite Audit tidak menemukan masalah-masalah yang dapat membahayakan kelangsungan operasional dari Perseroan.

4.2. Komite Kepatuhan

Komite Kepatuhan dibentuk oleh Direksi pada tanggal 7 Desember 2012. Komite ini bertanggung jawab atas pelaksanaan ketaatan Perseroan terhadap peraturan perundang-undangan yang sesuai dengan operasional perseroan. Adapun area-area yang dimaksud adalah Sumber Daya Manusia dan remunerasi, Keselamatan dan Kesehatan Kerja, Lingkungan, Perpajakan, serta Supply Chain.

Susunan lengkap keanggotaan Komite kepatuhan tahun 2017, adalah sebagai berikut:

1. Handono Warih – Direktur Independen S1 Institut Teknologi Nasional, Malang, 1986. Pengalaman Kerja : Sejak 1997 bekerja di KIA sebagai Plant Manager.

2. Gunarso - Productivity Improvement Manager S1 Matematika, Institut Teknologi Surabaya, Surabaya, 1991. Pengalaman Kerja: Sejak 1996 sudah bekerja di KIA sebagai Purchasing.

3. Yusran - PGA Manager S1 Fakultas Hukum, Universitas Krisnadwipayana, Jakarta,

1987. Pengalaman Kerja : Sejak 1985 bekerja di kantor advokat dan personalia di

berbagai perusahaan. Bergabung di KIA sejak 2006.

4. Ferry Ardian - Purchasing Manager D3 Accounting, Akademi Akuntansi YKPM, Yogyakarta,

1993 Pengalaman Kerja: Sejak1993 berpengalaman sebagai Akuntan di beberapa

perusahaan. Bergabung di KIA sejak 2000

Audit Committee was fully supported by the Management and cooperation from the Internal Audit, including the disclosure of financial statements, risk management strategy, independence of internal and external auditors, and determination of GCG principles implemented in the Company.

Audit Committee has discussed with the Company’s external auditors about the audit results on the financial statements including effectiveness of internal controls, audit findings and recommendations, risk management in significant areas, and the adequacy of disclosure.

Based on prudent reviews during the year 2017, the Audit Committee did not find significant issues that may jeopardize the continuity operations of the Company.

4.2. Compliance Committee

Compliance Committee was established by the Board of Directors on 7 December 2012. Compliance Committee is responsible to ensure that all activities of the Company comply with all laws and regulations relevant to the operation of the Company in the areas of Human Resources and Remuneration, Occupational Health and Safety, Environment, Taxation, and Supply Chain.

Composition of the compliance committee in 2017, as follows:

1 Handono Warih - Independent Director National Institute of Technology, Malang, 1986. Experience : Join KIA since 1997 as Plant Manager

2. Gunarso - Productivity Improvement Manager Bachelor or Engineering (Mathematics), Institute

Technology of Surabaya, Surabaya, 1991. Experience: Join KIA since 1996 as Purchasing.

3. Yusran - PGA Manager Bachelor of Law, Krisnadwipayana University, Jakarta,

1987. Experience : Since 1985 work at law firm and personnel in several

companies. Join KIA since 2006.

4. Ferry Ardian - Purchasing Manager Diploma in Accounting, Akademi Akuntansi YKPM,

Yogyakarta, 1993 Experience: Since 1993 work as accountant in several companies. Join KIA since 2010.



5. Firdaus – General Affair Supervisor D3 Komputer Akuntansi, LKPIJ, Bandung, 1995 Pengalaman Kerja: Sejak 1995 bekerja sebagai staff General Affair di salah

satu perusahaan properti. Bergabung di KIA sejak 1997.

6. Mujamil - Engineering Manager STM PGRI 3 Surabaya, 1990 Pengalaman Kerja : Bergabung di KIA sejak 1996.

7. Verawaty Trisno Hadijanto – Sekretaris Perusahaan Bachelor of Business and Commerce (Marketing and

E-Commerce) Honours, Monash University, Malaysia, 2003 Pengalaman Kerja: Sejak 2003 bekerja sebagai staff Marketing di berbagai

perusahaan. Bergabung di KIA sejak 2012.

8. Mohammad Audrian Insya – Legal Officer S1 Hukum, Universitas Indonesia, Jakarta, 2011. Pengalaman Kerja: Sejak 2011 bekerja sebagai Associate Lawyer di salah

satu kantor advokat. Bergabung di KIA sejak 2015.

9 Hijrian Rizki Deppabayang - Kepala Internal Audit S1 Akuntansi, STIE Perbanas, Surabaya, 2011. Pengalaman Kerja : Sejak 2012 bekerja sebagai Internal Auditor Bergabung di KIA sejak 2017.

Komite Kepatuhan dipimpin oleh seorang direktur yang terdiri dari perwakilan seluruh Departemen yang bekerja secara independen, melapor dan bertanggung jawab langsung kepada Direktur Utama.

Komite Kepatuhan mengadakan rapat dan evaluasi setiap bulan dan membahas perkembangan yang terjadi di perusahaan.

Sepanjang tahun 2017, Komite Kepatuhan telah menyelenggarakan rapat dan evaluasi sesuai dengan jadwal yang direncanakan.

4.3. Komite Nominasi dan Remunerasi

Komite Nominasi dan Remunerasi dibentuk oleh dan bertanggung jawab kepada Dewan Komisaris Perseroan dalam membantu melaksanakan fungsi dan tugas Dewan Komisaris terkait Nominasi dan Remunerasi terhadap anggota Direksi dan anggota Dewan Komisaris. Komite Nominasi dan Remunerasi Perseroan yang saat ini menjabat diangkat oleh

5. Firdaus – General Affair Supervisor D3 Accounting Computer, LPKIJ, Bandung, 1995 Experience : Since 1995 worked as General Affairs staff at one of the

property companies. Join KIA since 1997

.6. Mujamil - Engineering Manager STM PGRI 3 Surabaya, 1990. Experience: Join KIA since 1996.

7. Verawaty Trisno Hadijanto – Corporate Secretary Bachelor of Business and Commerce (Marketing and

E-Commerce) Honours, Monash University, Malaysia, 2003 Experience: Since 2003 worked as Marketing staffs in various

companies. Join KIA since 2012

8. Mohammad Audrian Insya – Legal Officer Bachelor of Law, Universitas Indonesia, Jakarta, 2011 Experience: Since 2011 worked as Associate Lawyer at a law firm. Join KIA since 2015

9. Hijrian Rizki Deppabayang - Chief Internal Audit Bachelor of Accounting, STIE Perbanas, Surabaya, 2011. Experience: Since 2011 work as auditor. Join KIA since 2017.

Compliance Committee is chaired by a Director, consists of representatives from all department, work independently, report and responsible directly to the President Director.

Compliance Committee held regular meeting and evaluation every month and discuss on the development occurred in the Company.

Throughout 2017, Compliance Committee held meetings and evaluation as planned on the schedule.

4.3. Nomination and Remuneration Committee

Nomination and Remuneration Committee was established by and responsible to the Board of Commissioners in helping to implement the function and duties of Board of Commissioners in regards to nomination and remuneration toward members of Board of Directors and Board of Commissioners. The existing Nomination and Remuneration Committee was



Dewan Komisaris berdasarkan Keputusan Rapat Dewan Komisaris tertanggal 12 Mei 2017. Masa jabatan Komite Nominasi dan Remunerasi adalah sama dengan masa jabatan Dewan Komisaris sebagaimana diatur dalam Anggaran Dasar dan dapat diangkat kembali. Komite Nominasi dan Remunerasi paling kurang terdiri dari 3 (tiga) orang anggota, yaitu 1 (satu) orang ketua merangkap anggota yang merupakan Komisaris Independen, dan anggota lainnya yang dapat berasal dari anggota Dewan Komisaris, pihak yang berasal dari luar emiten atau perusahaan publik, pihak yang menduduki jabatan manajerial di bawah Direksi yang membidangi sumber daya manusia.

Susunan Komite Nominasi dan Remunerasi adalah sebagai berikut:

Padung Likitsajjakul - Ketua, Komisaris IndependenAree Chavalitcheewingul - Anggota, Presiden KomisarisYusran - Anggota, HR Manager

Profil Bapak Padung Likitsajjakul dan Bapak Aree Chavalitcheewingul dapat dibaca di halaman 51 dan halaman 48 dalam Laporan Tahunan ini.

Komite Nominasi dan Remunerasi telah menyusun Pedoman Komite Nominasi Remunerasi dan telah ditetapkan oleh Dewan Komisaris yang mulai berlaku efektif sejak tanggal 12 Mei 2017. Pedoman Komite Nominasi dan Remunerasi dibentuk untuk memenuhi ketentuan Peraturan Otoritas Jasa Keuangan (POJK) No. 34/POJK.04/2014 tentang Komite Nominasi dan Remunerasi Emiten atau Perusahaan Publik, juga berguna sebagai pedoman dalam menjalankan fungsinya untuk membantu pelaksanaan tugas Dewan Komisaris dalam rangka memenuhi prinsip Good Corporate Governance. Pedoman Komite Nominasi dan Remunerasi memuat antara lain tugas dan tanggung jawab, komposisi dan struktur keanggotaan, tata cara dan prosedur kerja, penyelenggaraan rapat, sistem pelaporan kegiatan, tata cara penggantian anggota, dan masa jabatan. Anggota Komite Nominasi dan Remunerasi harus memenuhi kualifikasi independensi dan kompetensi antara lain: (i) mengerti dan memahami kegiatan usaha Perseroan dan entitas anak Perseroan; (ii) bersifat profesional, memiliki integritas yang tinggi, dan mempunyai kemampuan dan pengetahuan mengenai sistem remunerasi dan nominasi; dan (iii) tidak memiliki kepentingan/keterkaitan pribadi yang dapat menimbulkan dampak negatif dan benturan kepentingan terhadap Perseroan, atau yang dapat mempengaruhi kemampuannya untuk bertindak independen. Kegiatan Komite Nominasi dan Remunerasi selama tahun buku 2017, sebagai berikut:

- Menyusun Piagam Komite Nominasi dan Remunerasi- Menelaah kembali prosedur nominasi- Menelaah kembali struktur dan kebijakan remunerasi- Melakukan evaluasi dan pembahasan atas kinerja yang

dicapai masing-masing anggota Dewan Komisaris dan Direksi- Melakukan diskusi dengan Dewan Komisaris untuk

membahas hasil evaluasi

appointed by Board of Commissoners based on Resolution of Board of Commissioners meeting dated 12 May 2017. Service period of Nomination and Remuneration Committee is the same as service period of Board of Commissioners as regulated in the Company’s Articles of Association and can be re-appointed. Nomination and Remuneration Committee shall consists of minimum 3 (three) members, i.e. 1 (one) Independent Commissioner as Chairman and member as well, and other members who can be from member of the Board of Commissioners, a person from outside of the Company, party who is in charge in human resources and have managerial position below Director.

The composition of Nomination and Remuneration Committee is as follows:

Padung Likitsajjakul - Chairman, Independent CommissionerAree Chavalitcheewingul - Member, Presiden KomisarisYusran - Member, HR Manager

The profile of Mr. Padung Likitsajjakul and Mr. Aree Chavalitcheewingul are available on page 51 and page 48 of this Annual Report.

The Nomination and Remuneration Committee has formed the Charter of Nomination and Remuneration Committee which was determined by Board of Commissioners and became effective starting on 12 May 2017. The Charter of Nomination and Remuneration Committee was formed for the purpose of compliance with Financial Services Authority (OJK) Regulation No. 34/POJK.04/2014 regarding Nomination and Remuneration Committee of Public Company, and as guidelines in carrying out their the function to support the duties of Board of Commissioners to meet with Good Corporate Governance principles.The Charter governs the duties and responsibilities, membership composition and structure, working procedures, meeting arrangements, reporting systems, procedure of member replacement, as well as its term of office. Members of Nomination and Remuneration Committee shall fulfill the qualification of independent and competent as follow: (i) understand the business activities of the Company and its subsidiaries; (ii) professional, high integrity, with sound knowledge of remuneration and nomination systems; and (iii) have no personal engagements that could result in conflict of interest with the Company or adversely affect their ability to act independently.The Nomination and Remuneration Committee activities during Financial Year 2017 as follows:

- Form Charter of Nomination and Remuneration Committee- Reviewed the nomination procedure- Reviewed the structure and policy on remuneration- Evaluated and reviewed the performance of each BOC and

BOD member- Discussed with the BOC to examine the evaluation report



- Memberikan rekomendasi pemberian remunerasi untuk tahun 2017

- Melakukan seleksi calon dan mengusulkan nominasi calon anggota Dewan Komisaris dan Direksi sehubungan dengan telah berakhirnya masa jabatan anggota Dewan Komisaris dan Direksi

- Menyelenggarakan dan menghadiri rapat Komite Nominasi dan Remunerasi.

Ketentuan mengenai Rapat Komite Nominasi dan Remunerasi diatur dalam Piagam Komite Nominasi dan Remunerasi yang sesuai dengan ketentuan Peraturan Otoritas Jasa Keuangan No. 34/POJK.04/2014 yang menetapkan bahwa penyelenggaraan rapat Komite Nominasi Remunerasi paling kurang 1 (satu) kali dalam 4 (empat) bulan. Selama tahun buku 2017, Komite Nominasi dan Remunerasi telah mengadakan rapat sebanyak 3 (tiga) kali, dengan tingkat kehadiran 100%. Jadwal rapat Komite Nominasi dan Remunerasi ditetapkan dan diberitahukan kepada seluruh anggota Komite Nominasi dan Remunerasi sebelum berakhirnya tahun buku. Agenda dan semua informasi yang berhubungan dengan topik pembahasan disampaikan kepada setiap anggota Komite.

5. Sekretaris Perseroan

Tugas dan tanggung jawab Sekretaris Perseroan adalah mengikuti perkembangan pasar modal dan peraturan terkait, menyediakan informasi yang berhubungan dengan Perseroan, memberikan masukan dan nasihat kepada Direksi Perseroan berkaitan dengan peraturan pasar modal, sebagai penghubung antara Perseroan dengan otoritas Pasar Modal, Pemegang Saham, Investor dan pemangku kepentingan lainnya dan juga sebagai pengelola administrasi yang terkait dengan organ-organ Perseroan menurut ketentuan perundangan yang berlaku. Sekretaris Perseroan juga bertanggungjawab dalam memilih media komunikasi yang akan digunakan dan koordinasi yang diperlukan untuk selalu menjaga integritas Perseroan sehubungan dengan informasi yang diberikan kepada masyarakat.

Berdasarkan Surat Perseroan No. 176/Srt.Corsec-KIA/05.2015 yang ditujukan kepada OJK dan IDX Perihal Pemberitahuan Pergantian dan Pengangkatan Sekretaris Perseroan (Corporate Secretary) tanggal 8 Mei 2015, Direksi mengangkat Sdri Verawaty Trisno Hadijanto sebagai Sekretaris Perseroan. Dengan latar belakang pendidikan di bidang Business and Commerce (Marketing and E-Commerce), beliau adalah lulusan Pascasarjana Fakultas Business and Commerce Monash University Malaysia. Bergabung di Perseroan sejak Januari 2012.

Sepanjang tahun 2017, Sekretaris Perusahaan telah melaksanakan tugas kesehariannya sesuai dengan fungsi dan kewenangannya dalam menyelenggarakan RUPS, Public Expose, pelaporan-pelaporan baik rutin maupun insidentil, mengikuti perkembangan regulasi pasar modal, menjalin komunikasi dengan stakeholder dan lain-lain.

- Recommended the remuneration of the BOC and BOD for 2017

- Conducted candidate selection and nomination for BOC and BOD members who are ending their terms of office

- Arranged and attended Nomination and Remuneration Committee meetings.

The regulation about Nomination and Remuneration Committee meeting is stipulated in the Charter of Nomination and Remuneration Committee which is in line with Financial Services Authority regulation No. 34/POJK.04/2014, which requires the Committee to have meeting to at least once every 4 (four) months. In 2017, the Committee held 3 (three) meetings with 100% attendance rate. Schedule of Nomination and Remuneration Committee meetings were set and communicated to all members of Nomination and Remuneration Committee before the end of fiscal year. The agenda and all information related to the discussion topic was delivered to each member of the Committee.

5. Corporate Secretary

Duties and responsibilities of Corporate Secretary is to follow the development of capital markets and regulations, provide information related to the Company business, provide input and advice to the Board of Directors relating to the regulations of capital markets, act as a liaison between the Company and Capital Market authorities, shareholders, investors and other stakeholders as well as administrators associated with the Company in accordance with existing laws. Corporate Secretary is also responsible for appropriate communication and coordination required for information provided to the public.

Based on the Company Letter No. 176/Srt.Corsec-KIA/05.2015 addressed to the OJK and IDX regarding the Notification of Replacement and appointment of the Corporate Secretary dated 8 May 2015, the Board of Directors appointed Verawaty Trisno Hadijanto as the Corporate Secretary. She graduated from the Master Degree Program from Faculty of Business and Commerce, Monash University, Malaysia. She has working experience in Business and E-Commerce. She joined the Company since January 2012.

Throughout 2017, Corporate Secretary carried out their daily tasks in accordance with the functions and authority in organizing the General Meeting of Shareholders, Public Expose, reportings, both routine and incidental, following the development of capital market regulation, establish communication with stakeholders and others.



6. Internal Audit

Internal Audit dibentuk dalam rangka memantau dan menerapkan pengendalian internal Perseroan. Perseroan menerapkan sistem pengawasan dan pengendalian internal berbasis risiko dengan mengacu kepada piagam audit internal yang ditetapkan berdasarkan keputusan direksi yang mengacu pada keputusan ketua Bapepam dan Lembaga Keuangan No. KEP-496/BL/2008.

Kepala Unit Audit Internal Perseroan dijabat oleh Hijrian Rizki Deppabayang berdasarkan surat perseroan No. 001/CORP/CS-KIA/IAD/X/2017 tertanggal 2 Oktober 2017. Beliau berlatar belakang pendidikan Sarjana Ekonomi Akuntansi, Fakultas Ekonomi STIE Perbanas, Surabaya, dengan pengalaman kerja sebagai Senior Internal Audit di beberapa perseroan sebelum bergabung di Perseroan sejak Oktober 2017.

Tugas dan tanggungjawab unit audit internal sebagai berikut:

1. Menyusun strategi dan rencana kerja audit tahunan.2. Mempersiapkan dan melaksanakan audit atas efektifitas

system pengendalian internal dan manajemen resiko sesuai dengan kebijakan perusahaan.

3. Mempersiapkan dan melaksanakan audit operasional untuk mengukur tingkat efisiensi dan efektifitas semua kegiatan perseroan.

4. Mempersiapkan dan melaksanakan audit khusus atas permintaan manajemen.

5. Membuat dan menyampaikan laporan audit, rekomendasi, dan tindak lanjut atas temuan audit kepada Presiden Direktur.

6. Internal Audit

Internal Audit was established in order to monitor and implement the Company’s internal control. Company introduced a system of supervision and internal controls with respect to the risk-based internal audit charter, defined by reference to the decision-making board of directors and chairman of Bapepam No. Kep-496/BL/2008.

Chief of Internal Audit Unit of the Company is Hijrian Rizki Deppabayang appointed by Corporate Decision Letter No. 001/CORP/CS-KIA/IAD/X/2017 dated 2 October 2017. He is a Bachelor Degree of Accountant, Economics Faculty, STIE Perbanas, Surabaya with experience as Senior Internal Audit Staff at several companies before joining the Company in October 2017.

Duties and responsibility of Internal Audit Unit as follow:

1. Prepare annual audit work plan and strategy.2. Prepare and conduct audit on the effectiveness of internal

control system and risk management in accordance with company policy.

3. Prepare and conduct operational audits to measure the efficiency and effectiveness of all corporate activities.

4. Prepare and conduct a special audit at the request from management.

5. Create and submit audit reports, recommendations, and follow-up on audit findings to the President Director.

Belford Grey



7. Sistem Pengendalian Internal

a. Pengendalian Keuangan dan Operasional

Sistem Pengendalian Internal (SPI) yang efektif merupakan komponen penting bagi Perseroan dan menjadikannya sebagai dasar bagi kegiatan operasional yang sehat dan aman. Dengan SPI akan membantu Perseroan dalam hal mekanisme pengawasan seperti menjaga aset, dampak kerugian, dan kepatuhan terhadap perundangan.

Perseroan telah membuat SPI yang berlaku efektif dapat membantu Perseroan akan informasi keuangan yang dapat dipercaya, meningkatkan kepatuhan Perseroan terhadap peraturan perundang-undangan yang berlaku, serta mengurangi risiko terjadinya kerugian keuangan dan operasional, penyimpangan dan pelanggaran aspek kehati-hatian.

b. Evaluasi Atas Efektivitas Sistem Pengendalian Internal

Untuk mengevaluasi atas efektivitas SPI, Perseroan telah membentuk Internal Audit Departemen (IAD) yang bertugas sebagai Satuan Pengawasan Internal. Hasil evaluasi dari IAD menjadi salah satu dasar evaluasi Manajemen terhadap efektifitas SPI dan untuk menentukan perbaikan dan penyempurnaan sistem ataupun kebijakan yang memungkinkan Manajemen dapat secara lebih efektif menjalankan kegiatan operasional Perusahaan sesuai dengan Tata Kelola Perusahaan yang Baik.

Direksi bertanggung jawab untuk memastikan bahwa Perseroan sudah memiliki sistem pengendalian internal yang baik serta efektif, dan di review oleh Komite Audit. Internal Audit memegang peranan penting dalam memantau dan merekomendasikan perbaikan sistem pengendalian internal di Perseroan. Untuk mencapai target tersebut Sistem Pengendalian Internal harus dilakukan oleh semua tingkatan di dalam Perseroan.

c. Review atas efektivitas Sistem Manajemen Risiko perusahaan

Sistem Manajemen risiko adalah bagian yang penting di dalam tata kelola perusahaan yang baik, diperlukan suatu komitmen yang tinggi yang diwujudkan oleh Direksi melalui tata kelola manajemen risiko. Pada saat ini Perseroan sudah memiliki infrastruktur tata kelola manajemen risiko serta elemen-elemen pendukung lainnya yang mendukung system tersebut.

8. Risiko dan Cara Pengelolaannya

Komite Manajemen Risiko Perseroan telah mengelompokan 5 (lima) kategori risiko di dalam usaha Perseroan, sebagai berikut:

7. Internal Control System

a. Financial and Operational Control

Effective Internal Control Systems (ICS) is an important component for the Company and as a basis for health and safety operation activities. ICS will assist Company in terms of control mechanisms such as asset maintainance, the impact of loss, and compliance with regulations.

The Company has effectively made a valid ICS to help the Company for reliable financial information, enhance Company’s compliance with laws and regulations in force, as well as reducing the risk of financial and operational losses, irregularities and violations of prudential aspects.

b. Evaluation on the Effectiveness Evaluation of Internal Control Systems

To evaluate the effectiveness of the ICS, Company has established Internal Audit Department (IAD), which served as the Internal Audit Unit. Evaluation results from the IAD is one of the basic management evaluation of the effectiveness of ICS and to determine the repair and improvement of systems or policies that allow management to be more effective in running Company’s operation activities in accordance with Good Corporate Governance.

The Board of Directors is responsible to ensure the Company has good internal control system reviewed by the Audit Committee. Internal Audit plays an important role in monitoring and recommending on improvements of the Company’s internal control system. To achieve the target, Internal Control System should be done by all levels within the Company.

c. Review on the effectiveness of the company Risk Management System

Risk management system is an important part in the good corporate governance, we need strong commitment manifested by the Board of Directors through the governance of risk management. At this time Company already has the infrastructure of governance risk management and other support elements that support the system.

8. Risk and How Their Management

Risk Management Committee of the Company has classified five (5) categories of risks in the Company’s business, as follows:



8.1. Risiko Keselamatan, Kesehatan dan Lingkungan

- Risiko keselamatan dan kesehatan- Kerusakan lingkungan- Melaksanakan kesehatan medis karyawan secara tahunan,

asuransi kesehatan dan jamsostek- Perseroan mengimplementasikan Keselamatan dan

keberlangsungan lingkungan, tidak hanya untuk karyawan tetapi juga untuk keluarga dan komunitas dimana perusahaan beroperasi. Dengan lingkungan yang nyaman produktivitas diharapkan meningkat. Setiap pabrik dari perseroan memiliki unit manajemen lingkungan (UPL) dengan arahan dari manajemen dan dampak dari pengendalian lingkungan.

8.2. Risiko Kepatuhan

Hukum dan peraturan, sosial/ komitmen bisnis dan peraturan dan kebijakan internal.

8.3. Risiko aktiva tidak berwujud

Reputasi/risiko merk dagang dan kekayaan intelektual.

8.4. Risiko Bahaya- Bencana alam dan bencana yang disebabkan oleh

manusia.- Mempromosikan lingkungan kerja harian dengan target

nihil kecelakaan yang diimplementasikan dan diorganisir oleh komite kesehatan dan keselamatan perseroan.

- Pada saat terjadi keadaan darurat, perseroan membentuk Business Continuity Management (BCM), dimana unit kerja ini mengingatkan karyawan dan unit bisnis lainnya yang terkena dampak untuk memastikan keadaan dapat diatasi sesuai dengan rencana BCM. Contohnya membuat ruang pengendalian untuk memonitor kecelakaan listrik.

8.5. Risiko InputBahan baku, Energi, SDM, mesin/perlengkapan.

8.6. Risiko Operasional

Operasional pabrik, penjualan dan pemasaran, distribusi, Sumber Daya Manusia Support system (contoh: IT), Engineering/Konstruksi, serikat buruh.

8.7. Risiko Keuangan

Nilai tukar mata uang, tingkat suku bunga, likuiditas, kredit dan pasar keuangan.

8.8. Risiko BisnisRisiko lingkungan bisnis secara umum (contoh: sosial politik, makro ekonomi) dan risiko industri (contoh: konsumen, pesaing, teknologi).

8.1. Safety, Health, Environment risk

- Safety and health risks- Environmental damage- Conduct medical check up for employee on yearly basis,

health insurance and social security.- Safety and environmental sustainability of the Company

is implemented, not only for employees, but also for their families and the communities where the Company operates. With a nice and comfortable environment, productivity is expected to increase. Each Company’s site has environmental management unit (UKL) and the environmental unit (UPL) with respect to the management and control of environmental impacts.

8.2. Compliance Risk

Laws and regulations, social/business commitment and Internal rules and regulation.

8.3 Intangible assets risk

Reputation/Brand risk and Intellectual Property protection risk.

8.4. Hazard Risk- Natural disaster and Man-made disaster.

- Promote daily working environment with a target of zero accidents, implemented and organized by the Health and Safety Committee of the Company.

- In the event of emergency, company establish Business Continuity Management (BCM), in which it alerts employees and business units who may be affected to ensure readiness in handling the situation according to the Business Continuity Plan. Past examples include setting up a war room to monitor an electricity incident.

8.5. Input RiskRaw Materials, Energy/Utilities, Labor, Machinery/ Equipment Trading goods.

8.6. Operations risk

Plant Operations, Sales and Marketing, Distribution, Human Capital Supporting system (e.g. IT), Engineering/Construction, Alliance.

8.7. Financial Risk

Exchange rate, Interest rate, Liquidity, Credit and Financial market

8.8. Business riskGeneral business environment risks (e.g. socio-political, macroeconomics) and industry risks (e.g. consumer, competitor, technology).



9. Penilaian Risiko

Penilaian risiko adalah proses sistematik untuk mengidentifikasi dan mengevaluasi kejadian-kejadian (contoh: kemungkinan risiko dan kesempatan) yang dapat memeberikan dampak terhadap pencapaian tujuan, baik secara positif maupun negatif. Kejadian-kejadian tersebut dapat diidentifikasi dilingkungan eksternal (contoh: tren ekonomi, peraturan tata kota dan persaingan) dan didalam lingkungan internal organisasi (contoh: masyrakat, proses dan infrastruktur).

Ketika kejadian tersebut saling berkaitan dengan tujuan organisasi atau dapat di perkirakan maka kejadian tersebut dianggap menjadi risiko. Maka dari itu risiko didefinisikan sebagai kemungkinan suatu kejadian akan terjadi dan akan memberikan dampak terhadap pencapaian tujuan Perseroan membuat matrik risiko umum untuk membuat standarisasi metodologi penilaian antar organisasi.

Pemilik resiko menggunakan bermacam-macam cara (contoh: analisa skenario, analisis korelasi dan perbandingan) untuk menilai kemungkinan tingkat kerusakan dan risiko yang dikelola. Hasil penilaian kemudian dibandingkan dengan batas risiko, yang mana dirancang sesuai dengan risk appetite. Penilaian risiko adalah sebagai berikut: Nihil Kecelakaan kerja, nihil keterlambatan dalam penanganan kecelakaan dan nihil dalam pelanggaran hukum melebihi batas kemampuan risiko yang dapat ditanggung perusahaan.

10. System pelaporan pelanggaran di perusahaan

Whistle Blowing System adalah sistem pelaporan pelanggaran yang memungkinkan semua pihak baik eksternal dan internal untuk melaporkan adanya kecurangan, penyelewengan, pelanggaran hukum serta etika yang dilakukan oleh setiap karyawan PT Keramika Indonesia Assosiasi Tbk di semua tingkatan manajemen. Perseroan saat ini sudah menerapan whistle blowing system dan diharapkan mampu meningkatkan pengendalian internal yang ada di dalam perusahaan.

11. Etika Bisnis dan Etika Kerja

Perseroan merupakan salah satu perseroan publik yang memiliki tanggung jawab untuk melaksanakan Good Corporate Governance (GCG) dalam setiap aktivitasnya. Implementasi GCG di Perseroan diharapkan menjadi payung bagi seluruh sistem dan struktur yang ada di dalam prinsip GCG sampai kepada level operasional, sekaligus menjadi panduan dalam hubungan Perseroan (KIA) dengan stakeholders. Implementasi GCG di Perseroan diarahkan untuk membentuk tidak hanya sistem dan struktur yang kuat, namun menciptakan mentalitas SDM yang memiliki integritas baik sehingga menjadi agent of change yang melaksanakan dan menjadikan GCG sebagai budaya Perseroan.

9. Risk Assessment

Risk assessment is a systematic process for identifying and evaluating events (i.e., possible risks and opportunities) that could affect the achievement of objectives, positively or negatively. Such events can be identified in external environment (e.g., economic trends, regulatory landscape, and competition) and within an organization’s internal environment (e.g., people, process, and infrastructure).

When these event intersect with an organization’s objectives or can be predicted to do so they become risks. Risk is therefore defined as the possibility that an event will occur and adversely affect the achievement of objectives. Company established common risk metrics to standardize assessment methodology across the organization.

Risk owners use various tools (e.g. scenario analysis, correlation analysis, and benchmarking) to assess the likelihood, severity,and manageability of risk. The assessment results are then compared with specified risk limits, which are devised in accordance with risk appetite. Risk Assessment, are as follows: Zero fatalities, Zero lost-time-injuries and Zero breaches of any laws/pacts resulting in Highly punitive fines exceeding corporate risk Limit.

10. Whistle Blowing System in the company

Whistle Blowing System is a violation reporting system that allows all parties, both external and internal to report fraud, misappropriation, violation of the law and ethics made by any employee of PT Keramika Indonesia Assosiasi Tbk at all levels of management. The Company is implementing whistleblowing system and expected to improve internal controls in the company.

11. Business Ethics and Code Ethics

The Company is one of the public companies that have the responsibility to implement Good Corporate Governance (GCG) in all activities. Implementation of Corporate Governance in the Company is expected to be an umbrella for all the system and structure that exist in the corporate governance principles to the operational level, as well as a guide in KIA relationship with stakeholders. Implementation of Corporate Governance in the Company is directed to establish systems and structures that are not only powerful, but creating human mentality that has good integrity to become agents of change who carry out and make the GCG as a Company culture.



Untuk mendukung hal tersebut, diperlukan adanya mekanisme yang menjadi pengikat bagi setiap individu Perseroan dalam menjalankan implementasi GCG dengan penuh komitmen dan konsistensi. Salah satu caranya adalah dengan menjalankan Kode Etik Perusahaan yang telah dimiliki sejak tahun 2012. Kode Etik Perusahaan mencakup prinsip-prinsip dasar etika bisnis sebagai pedoman bagi seluruh karyawan Perseroan, yang terdiri dari beberapa aspek:

a. Etika Bisnis, mengatur hubungan sesama karyawan Perseroan, pelanggan, pemegang saham, pemerintah dan regulator, lingkungan, penyedia barang/jasa, kreditur/investor, pesaing dan masyarakat sekitar.

b. Etika kerja, mengatur tuntutan perilaku individu, kepatuhan terhadap hukum dan peraturan Perundang-undangan, kerahasiaan informasi, benturan kepentingan, pemberian dan penerimaan hadiah, anti penggelapan, melindungi aset Perseroan, keselamatan dan kesehatan kerja, menjaga citra Perseroan, serta ketepatan pencatatan. Selain itu, penjabaran aspek tersebut di atas dalam Code of Conduct juga merupakan bagian dari penjabaran nilai-nilai Perseroan, berkembang dan dilaksankan oleh seluruh karyawan, yakni Clean, Respectful dan Synergy.

Clean : Bersih secara moral, transparan dan akuntabel

Respectful : Terpercaya di dalam komunitas bisnis dan lingkungannya melalui profesionalisme, kemandirian, berdaya saing serta kemampuannya memenuhi kepuasan stakeholders.

Synergy : Berorientasi pada kekuatan aliansi secara terpadu untuk menciptakan nilai.

Kode etik dan budaya perusahaan ini berlaku bagi seluruh karyawan perusahaan, Dewan Komisaris dan seluruh anggota Direksi.

Selama tahun 2017, Perseroan telah menyelenggarakan pelatihan untuk semua karyawan, dimulai dari level officer/staff sampai dengan level Manager, disamping pelatihan yang diselenggarakan oleh auditor internal Perseroan, SCG Building Materials Co., Ltd. maupun pihak ketiga lainnya.

To support this, it needs a mechanism for every employee to implement GCG with full commitment and consistency. One way of doing it is by implementing Company’s Code of Conduct which exist since 2012. Code of Conduct covers the basic principles of business ethics as a guide for all employees, which consists of several aspects:

a. Business Ethics, manage relationships with the Company’s employees, customers, shareholders, government and regulators, the environment, providers of goods/services, lenders/investors, competitors and communities.

b. Work ethic, manage the demands of individual behavior, compliance with laws and regulations, confidentiality, conflicts of interest, giving and receiving gifts, anti-fraud, protect company assets, health and safety, maintaining company criteria, as well as the accuracy of the recording. In addition, the translation of the above aspects of the Code of Conduct is also part of the translation of the Company’s values, evolving and applied by all employees of KIA i.e Clean, Respectful and Synergy.

Clean : Clean morally, transparent and accountable

Respectful : Trusted in the business community and its environment through professionalism, independence, competitiveness and ability to meet the satisfaction of stakeholders

Synergy : Oriented to the power of an integrated alliance to create value

Code of ethics and corporate culture applies to all employees of the company, the Board of Commissioners and the Board of Directors.

In 2017, the Company arranged workshops to all employees, starting from the level of officer/staff up to Manager in addition to in-house training held by the Company’s internal auditor, SCG Building Materials Co., Ltd. and other third parties.



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Tanggung Jawab Sosial PerusahaanCorporate Social Responsibility

Tanggung jawab sosial Perusahaan atau Corporate Social Responsibility bertujuan untuk menciptakan hubungan Perusahaan yang serasi dan seimbang dengan masyarakat dan lingkungan sekitar Perusahaan pada khususnya maupun dengan seluruh pemangku kepentingan. Beberapa program yang telah dilakukan antara lain beasiswa untuk siswa sekolah menengah atas, pemberian bantuan hari raya keagamaan, dan lain-lain.

Corporate social responsibility aims to create a harmonious and balance relationship between Company and its surrounding community, as well as to all stakeholders. Programs that have been carried out during 2017 such as scholarship program for high school student, gifts on religious national holiday, etc.


Profil Dewan KomisarisThe Board of Commissioners Profile

Pichit Maipoom – Komisaris Utama

Umur 54

Pendidikan 1985 B.E. (Electrical) Honour,

Chiang Mai University, Thailand

1992 M.E. (Industrial Engineering and Management), Asian Institute of Technology, Thailand

2011 Advanced Management Program (AMP), Harvard Business School, U.S.A.

Pengalaman2011-2012 Director, Thai Plastic and Chemicals Public

Company Limited, Thailand 2011-2012 Vice President - Corporate Administration,

The Siam Cement Public Company Limited, Thailand

2012 Executive Vice President, SCG Building Materials Company Limited, Thailand

2013 Director of Siam Global House Company Limited, Thailand

2011-2016 Commissioner, PT Kokoh Inti Arebama Tbk, Indonesia

Sekarang - Director, Member of Executive Committee and Member of Nomination, Remuneration and Corporate Governance Committee, Thai-German Ceramic Industry Public Company Limited, Thailand

- Director, Member of Executive Committee and Member of Nomination, Remuneration and Corporate Governance Committee, Quality Construction Products Public Company Limited, Thailand

- President, SCG Cement – Building Materials Company Limited, Thailand

Ditunjuk pertama kalinya sebagai Komisaris di Perseroan berdasarkan hasil Rapat Umum Pemegang Saham Tahunan Perseroan yang diselenggarakan pada tanggal 3 Juni 2011 dan dipromosikan sebagai Presiden Komisaris efektif per 1 Januari 2017 berdasarkan hasil Rapat Umum Pemegang Saham Luar Biasa yang diselenggarakan pada tanggal 22 November 2016.


Umur 54

Education 1985 B.E. (Electrical) Honour, Chiang Mai University,

Thailand

1992 M.E. (Industrial Engineering and Management), Asian Institute of Technology, Thailand


Experience2011-2012 Director, Thai Plastic and Chemicals Public

Company Limited, Thailand 2011-2012 Vice President - Corporate Administration,


2012 Executive Vice President, SCG Building Materials Company Limited, Thailand

2013 Director of Siam Global House Company Limited, Thailand

2011-2016 Commissioner, PT Kokoh Inti Arebama Tbk, Indonesia

Present - Director, Member of Executive Committee and Member of Nomination, Remuneration and Corporate Governance Committee, Thai-German Ceramic Industry Public Company Limited, Thailand

- Director, Member of Executive Committee and Member of Nomination, Remuneration and Corporate Governance Committee, Quality Construction Products Public Company Limited, Thailand

- President, SCG Cement – Building Materials Company Limited, Thailand

First apponted as Commissioner of the Company based on resolution of Annual General Meeting of Shareholders held on 3 June 2011 and promoted as President Commissioner effective on 1 January 2017 based on resolution of Extraordinary General Meeting of Shareholders held on 22 November 2016.

Aree Chavalitcheewingul - Komisaris Utama / President Commissioner



Umur 60

Pendidikan 1979 B.SC. (Ceramics Science),

Chulalongkorn University, Thailand

1988 M.BA. (Finance and International Business), Sasin Graduate Business School, Thailand


Pengalaman2000-2002 Regional Sales Director, SCG Network

Management Company Limited, Thailand2002-2006 Managing Director, Cementhai Retails

Company Limited, Thailand2006-2012 President, Mariwasa Siam Ceramic

Incorporation, The Philippines

Sekarang - Director, Thai-German Ceramic Industry Public Company Limited, Thailand

- Director, Mariwasa Siam Ceramic Incorporation, The Philippines

- Commissioner, PT KIA Serpih Mas, Indonesia - Commissioner, PT KIA Keramik Mas,

Indonesia - Director, Sosuco and Group 2008 Company

Limited, Thailand

Ditunjuk pertama kalinya sebagai Komisaris di Perseroan berdasarkan hasil Rapat Umum Pemegang Saham Tahunan Perseroan yang diselenggarakan pada tanggal 3 Juni 2011.

Age 60

Education 1979 B.SC. (Ceramics Science), Chulalongkorn University,

Thailand

1988 M.BA. (Finance and International Business), Sasin Graduate Business School, Thailand


Experience2000-2002 Regional Sales Director, SCG Network

Management Company Limited, Thailand2002-2006 Managing Director, Cementhai Retails

Company Limited, Thailand2006-2012 President, Mariwasa Siam Ceramic

Incorporation, The Philippines

Present - Director, Thai-German Ceramic Industry Public Company Limited, Thailand

- Director, Mariwasa Siam Ceramic Incorporation, The Philippines

- Commissioner, PT KIA Serpih Mas, Indonesia - Commissioner, PT KIA Keramik Mas,

Indonesia - Director, Sosuco and Group 2008 Company

Limited, Thailand

First appointed as Commissioner of the Company based on resolution of Annual General Meeting of Shareholders of the Company held on 3 June 2011.

Surasak Kraiwitchaicharoen - Komisaris / Commissioner


Umur 57

Pendidikan 1981 B.E. (Mechanical Engineering),


Pengalaman1981-1989 Engineer, The Siam Cement Public Company

Limited, Thailand 1989-1999 Engineering Plant Manager, The Siam Cement

Public Company Limited, Thailand 1999-2001 Production Manager, The Siam Cement

(Lampang) Company Limited, Thailand2001-2003 Managing Director, The Siam Cement

(Lampang) Company Limited, Thailand2003-2005 Managing Director, The CPAC Roof Tile

Company Limited, Thailand2005-2012 Managing Director, The Siam Cement (Thung

Song) Co.,Ltd., Thailand


Age 57

Education 1981 B.E. (Mechanical Engineering), Chulalongkorn

University, Thailand

Experience1981-1989 Engineer, The Siam Cement Public Company

Limited, Thailand 1989-1999 Engineering Plant Manager, The Siam Cement

Public Company Limited, Thailand 1999-2001 Production Manager, The Siam Cement

(Lampang) Company Limited, Thailand2001-2003 Managing Director, The Siam Cement

(Lampang) Company Limited, Thailand2003-2005 Managing Director, The CPAC Roof Tile

Company Limited, Thailand2005-2012 Managing Director, The Siam Cement (Thung

Song) Co.,Ltd., Thailand

Nantapong Chantrakul - Komisaris / Commissioner

Profil Dewan Komisaris


Sekarang Country Director – Indonesia, The Siam Cement Group

Ditunjuk pertama kalinya sebagai Komisaris di Perseroan efektif per 1 Januari 2017 berdasarkan hasil Rapat Umum Pemegang Saham Luar Biasa yang diselenggarakan pada tanggal 22 November 2016.

Present Country Director – Indonesia, SCG Cement-Building Materials Company Limited

First appointed as Commissioner of the Company effective on 1 January 2017 based on resolution of Extraordinary General Meeting of Shareholders held on 22 November 2016.

Umur 45

Pendidikan 1993 B.E. (Electrical), Chiang Mai

University, Thailand 2000 Master Degree in Engineering (Industrial

Engineering), Chulalongkorn University, Thailand Pengalaman1993-2000 Engineer, The Siam Refractory Industry

Company Limited, Thailand2000-2004 Technology Management Manager, Thai

Ceramic Company Limited, Thailand 2004-2007 Plant Manager, Thai Ceramic Company

Limited, Thailand2007-2013 Business Development & Supply Chain

Director, SCG Building Materials Co., Ltd., Thailand

2013-2016 Management Executive, SCG Building Materials Company Limited, Thailand

Sekarang Managing Director, Thai Ceramic Company Limited, Thailand

Ditunjuk pertama kalinya sebagai Komisaris di Perseroan efektif per 1 Januari 2017 berdasarkan hasil Rapat Umum Pemegang Saham Luar Biasa yang diselenggarakan pada tanggal 22 November 2016.


Umur 45

Education 1993 B.E. (Electrical), Chiang Mai University, Thailand 2000 Master Degree in Engineering (Industrial

Engineering), Chulalongkorn University, Thailand

Experience1993-2000 Engineer, The Siam Refractory Industry

Company Limited, Thailand2000-2004 Technology Management Manager, Thai

Ceramic Company Limited, Thailand 2004-2007 Plant Manager, Thai Ceramic Company

Limited, Thailand2007-2013 Business Development & Supply Chain

Director, SCG Building Materials Co., Ltd., Thailand

2013-2016 Management Executive, SCG Building Materials Company Limited, Thailand

Present Managing Director, Thai Ceramic Company Limited, Thailand

First appointed as Commissioner of the Company effective on 1 January 2017 based on resolution of Extraordinary General Meeting of Shareholders of the Company held on 22 November 2016.

Kittiphong Photaranon - Komisaris / Commissioner

Ash Brown




Age 66

Education 1974 B.A. (Politics and Government), Thammasat

University, Thailand 1976 M.P.A. (Public Administration), National Institute of

Development Administration, Thailand

Experience1999-2000 Human Resource Manager, Electric and Steel

Business, Thailand 2000-2001 Human Resource Manager, Cement Thai

Building products Company Limited, Thailand2001-2009 Human Resources Manager, SCG Building

Materials Company Limited, Thailand

Present - Chief Culture Officer, DT. Group of Companies, Thailand

- Director, Courtesy Services Corporation Limited

- Director MQDC Social Enterprise Limited, Thailand

- Independent Director and Member of Nomination, Remuneration and Corporate Governance Committee, Thai-German Ceramic Industry Public Company Limited, Thailand

First appointed as Commissioner of the Company based on resolution of Annual General Meeting of Shareholders of the Company held on 3 June 2011.

Umur 66

Pendidikan 1974 B.A. (Politics and Government),

Thammasat University, Thailand 1976 M.P.A. (Public Administration), National Institute of

Development Administration, Thailand

Pengalaman1999-2000 Human Resource Manager, Electric and Steel

Business, Thailand 2000-2001 Human Resource Manager, Cement Thai

Building products Company Limited, Thailand2001-2009 Human Resources Manager, SCG Building

Materials Company Limited, Thailand

Sekarang - Chief Culture Officer, DT. Group of Companies, Thailand

- Director, Courtesy Services Corporation Limited

- Director MQDC Social Enterprise Limited, Thailand

- Independent Director and Member of Nomination, Remuneration and Corporate Governance Committee, Thai-German Ceramic Industry Public Company Limited, Thailand

Ditunjuk pertama kalinya sebagai Komisaris Independen di Perseroan berdasarkan hasil Rapat Umum Pemegang Saham Tahunan Perseroan yang di selenggarakan pada tanggal 3 Juni 2011.

Umur 67

Pendidikan 1972 B.SC. (Agriculture), Kasetsart

University, Thailand1977 M.E. (Mechanical), Lamar University, U.S.A

Pengalaman1995-2001 President Director, Siam Mariwasa TOTO

Incorporation, The Philippines2001-2004 Marketing Division Manager Siam Cement

Industry Company Limited, Thailand2004-2007 Marketing Advisor, Siam Cement Industry

Company Limited, Thailand2008 - 2011 Managing Director & CEO, Royal Porcelain

Public Company Limited, Thailand

Ditunjuk pertama kalinya sebagai Komisaris Independen di Perseroan berdasarkan hasil Rapat Umum Pemegang Saham Tahunan Perseroan yang di selenggarakan pada tanggal 3 Juni 2011


Age 67

Education 1972 B.SC. (Agriculture), Kasetsart University, Thailand1977 M.E. (Mechanical), Lamar University, U.S.A

Experience1995-2001 President Director, Siam Mariwasa TOTO

Incorporation, The Philippines2001-2004 Marketing Division Manager Siam Cement

Industry Company Limited, Thailand2004-2007 Marketing Advisor, Siam Cement Industry

Company Limited, Thailand2008 - 2011 Managing Director & CEO, Royal Porcelain


First appointed as Independent Commissioner of the Company based on resolution of Annual General Meeting of Shareholders of the Company held on 3 June 2011

Thanarak Silavanich - Komisaris Independen / Independent Commissioner

Padung Likitsajjakul - Komisaris Independen / Independent Commissioner



Profil Dewan DireksiThe Board of Directors Profile


Umur 46

Pendidikan 1993 B.B.A. (Finance), Bangkok

University, Thailand 1999 M.B.A. (Business Administration), Kon Kaen


Pengalaman1994-1995 Analyst, The Siam Cement Public Company

Limited, Thailand1996-1998 Sales, The Siam Cement Public Company

Limited, Thailand1999-2002 Manager Electricity and Equipment, SCG

Cement-Building Materials Co., Ltd., Thailand2002-2005 Manager Electricity, Water and Decoration,

Cementhai Retails, Thailand2006-2009 Vice President Sales and Marketing, Mariwasa

Siam Ceramics Inc., The Philippines2012-2016 Managing Director, SCG Landscape Co.,Ltd.,

Thailand2012-2016 - Vice CEO Business Development, Siam

Global House Public Company Limited, Thailand

- Board of Director Souvanny Home Center PCL, Laos

Sekarang - President Director, PT Keramika Indonesia Assosiasi Tbk, Indonesia

- President Director, PT KIA Serpih Mas, Indonesia

- President Director, PT KIA Keramik Mas, Indonesia

Ditunjuk pertama kali menjadi Direktur Utama di Perseroan efektif per 1 Januari 2017 berdasarkan hasil Rapat Umum Pemegang Saham Luar Biasa Perseroan yang diselenggarakan pada tanggal 22 November 2016.


Umur 46

Education 1993 B.B.A. (Finance), Bangkok University, Thailand 1999 M.B.A. (Business Administration), Kon Kaen


Experience1994-1995 Analyst, The Siam Cement Public Company

Limited, Thailand1996-1998 Sales, The Siam Cement Public Company

Limited, Thailand1999-2002 Manager Electricity and Equipment, SCG

Cement-Building Materials Co., Ltd., Thailand2002-2005 Manager Electricity, Water and Decoration,

Cementhai Retails, Thailand2006-2009 Vice President Sales and Marketing, Mariwasa

Siam Ceramics Inc., The Philippines2012-2016 Managing Director, SCG Landscape Co.,Ltd.,

Thailand2012-2016 - Vice CEO Business Development, Siam

Global House Public Company Limited, Thailand

- Board of Director Souvanny Home Center PCL, Laos

Present - President Director, PT Keramika Indonesia Assosiasi Tbk, Indonesia

- President Director, PT KIA Serpih Mas, Indonesia

- President Director, PT KIA Keramik Mas, Indonesia

First appointed as President Director of the Company effective on 1 January 2017 based on the result of Extraordinary General Meeting of Shareholders of the Company held on 22 November 2016.

Numpol Malichai - Direktur Utama / President Director


Umur 69

Pendidikan 1971 B.SC., (Material Science),


Pengalaman1988-1993 Plant Director, Dynasty Ceramic Industry


Sekarang - Deputy Managing Director, The Siam Ceramic Group Industries Company Limited, Thailand

- Plant Director, Thai-German Ceramic Industry Public Company Limited, Thailand

- Director, PT Keramika Indonesia Assosiasi Tbk, Indonesia

Ditunjuk pertama kali menjadi Direktur di Perseroan berdasarkan hasil Rapat Umum Pemegang Saham Tahunan Perseroan yang diselenggarakan pada tanggal 3 Juni 2011.


Age 69

Education 1971 B.SC., (Material Science), Chulalongkorn


Experience1988-1993 Plant Director, Dynasty Ceramic Industry


Present - Deputy Managing Director, The Siam Ceramic Group Industries Company Limited, Thailand

- Plant Director, Thai-German Ceramic Industry Public Company Limited, Thailand

- Director, PT Keramika Indonesia Assosiasi Tbk, Indonesia

First appointed as Director of the Company based on the results of the Annual General Meeting of Shareholders of the Company held on 3 June 2011.

Chalermchai Chirasakyakul - Direktur / Director

Umur 47

Pendidikan 1992 B.B.A. (Accounting), Prince of

Songkla University, Thailand

Pengalaman1992-1997 Accountant, Nawaloha Thai Co.,Ltd., Thailand1997-1999 Assistant Manager – General Accounting,


1999-2000 Key User SAP Implementation Project, The Siam Cement Public Company Limited

2001-2002 Manager - SAP System, The Siam Cement Industry Co.,Ltd., Thailand

2002-2003 Manager Sales Accounting, The Siam Cement Industry Co.,Ltd., Thailand

2004-2005 Manager-Managerial Report-Cement Business, Cementhai Accounting Services Co.,Ltd., Thailand

2006-2007 Manager - Business Solution Consulting, The Siam Cement Public Company Limited, Thailand

2008-2015 Manager SAP-ERP, The Siam Cement Public Company Limited, Thailand

2016 Senior Manager - Corporate Accounting, The Siam Cement Public Company Limited, Thailand

Umur 47 Age 47

Education 1992 B.B.A. (Accounting), Prince of Songkla


Experience1992-1997 Accountant, Nawaloha Thai Co.,Ltd., Thailand1997-1999 Assistant Manager – General Accounting,


1999-2000 Key User SAP Implementation Project, The Siam Cement Public Company Limited

2001-2002 Manager - SAP System, The Siam Cement Industry Co.,Ltd., Thailand

2002-2003 Manager Sales Accounting, The Siam Cement Industry Co.,Ltd., Thailand

2004-2005 Manager-Managerial Report-Cement Business, Cementhai Accounting Services Co.,Ltd., Thailand

2006-2007 Manager - Business Solution Consulting, The Siam Cement Public Company Limited, Thailand

2008-2015 Manager SAP-ERP, The Siam Cement Public Company Limited, Thailand

2016 Senior Manager - Corporate Accounting, The Siam Cement Public Company Limited, Thailand

Susalak Khiew-Orn - Direktur / Director

Profil Dewan Direksi


Sekarang - Finance Director, PT Keramika Indonesia Assosiasi Tbk, Indonesia

- Director of PT. KIA Serpih Mas, Indonesia - Director of PT. KIA Keramik Mas, Indonesia

Ditunjuk pertama kali menjadi Direktur di Perseroan berdasarkan hasil Rapat Umum Pemegang Saham Luar Biasa Perseroan yang diselenggarakan pada tanggal 22 November 2016.

Present - Finance Director, PT Keramika Indonesia Assosiasi Tbk, Indonesia

- Director of PT. KIA Serpih Mas, Indonesia - Director of PT. KIA Keramik Mas, Indonesia

First appointed as Director of the Company based on the results of the Extraordinary General Meeting of Shareholders of the Company held on 22 November 2016.


Umur 42

Pendidikan 1997 Bachelor Degree in

International Economy, Thammasat University, Thailand

2005 Master of Business Administration, Thammasat University, Thailand

Pengalaman1997-2008 Marketing Officer, Thai Ceramic Co., Ltd.,

Thailand2008-2013 Regional Sales Manager, Thai Ceramic Co.,

Ltd., Thailand2013-2015 Marketing Director, PT. Surya Siam Keramik,

Indonesia

Sekarang - Marketing Director, PT Keramika Indonesia Assosiasi Tbk, Indonesia

- Marketing Director, PT Surya Siam Keramik, Indonesia

Ditunjuk pertama kali menjadi Direktur di Perseroan berdasarkan hasil Rapat Umum Pemegang Saham Tahunan Perseroan yang diselenggarakan pada tanggal 26 Juni 2015.

Age 42

Education 1997 Bachelor Degree in International Economy,

Thammasat University, Thailand

2005 Master of Business Administration, Thammasat University, Thailand

Experience1997-2008 Marketing Officer, Thai Ceramic Co., Ltd.,

Thailand2008-2013 Regional Sales Manager, Thai Ceramic Co.,

Ltd., Thailand2013-2015 Marketing Director, PT. Surya Siam Keramik,

Indonesia

Present - Marketing Director, PT Keramika Indonesia Assosiasi Tbk, Indonesia

- Marketing Director, PT Surya Siam Keramik, Indonesia

First appointed as Director of the Company based on the result of Annual General Meeting of Shareholders of the Company held on 26 June 2015.

Sarawut Worawat - Direktur / Director

Ardesia Grey



Umur 51

Pendidikan 1987 B.B.A. (Accounting),

Thammasat University, Thailand 1996 M.BA. (Business Administration), Thammasat


Pengalaman1995-1997 Finance & Report Manager, The Siam Iron &

Steel Company Limited, Thailand 1997-2008 Finance Director, PT Surya Siam Keramik,

Indonesia 2008-2011 Accounting & Finance Division Manager, Thai-

German Ceramic Industry Public Company Limited, Thailand

2011-2017 - Director, PT Keramika Indonesia Asosiasi Tbk, Indonesia

- Director, PT KIA Serpih Mas, Indonesia - Director, PT KIA Keramik Mas, Indonesia

Sekarang - Strategic Alliance Management Manager, SCG Cement-BUilding Materials Co.,Ltd., Thailand

Diberhentikan dengan hormat efektif per tanggal 1 Agustus 2017 berdasarkan hasil Rapat Umum Pemegang Saham Luar Biasa yang diselenggarakan pada tanggal 16 Juni 2017.

Age 51

Education 1987 B.B.A. (Accounting), Thammasat University,

Thailand 1996 M.BA. (Business Administration), Thammasat


Experience1995-1997 Finance & Report Manager, The Siam Iron &

Steel Company Limited, Thailand 1997-2008 Finance Director, PT Surya Siam Keramik,

Indonesia 2008-2011 Accounting & Finance Division Manager, Thai-

German Ceramic Industry Public Company Limited, Thailand

2011-2017 - Director, PT Keramika Indonesia Asosiasi Tbk, Indonesia

- Director, PT KIA Serpih Mas, Indonesia - Director, PT KIA Keramik Mas, Indonesia

Present - Strategic Alliance Management Manager, SCG Cement-BUilding Materials Co.,Ltd., Thailand

Honourably dismissed effective on 1 August 2017 based on Resolution of Extraordinary General Meeting of Shareholders held on 16 June 2017.

Kaewsawan Amatachiwin - Direktur / Director

Umur 45

Pendidikan 1995 Bachelor Degree in Electrical

Engineering, Mahanakorn University of Technology, Thailand

Pengalaman1996 -2010 Production Manager The Siam Ceramic Group

Industries Co., Ltd.,Thailand2010-2011 Production Department Manager Thai – German

Ceramic Industry Public Co., Ltd., Thailand2011-2015 Plant Operation Advisor PT Keramika Indonesia

Assosiasi Tbk, Indonesia2015-2017 Operational Director PT Keramika Indonesia

Assosiasi Tbk, Indonesia

Sekarang - Firing and Sorting Departement Manager, Thai-German Ceramic Industry Public Company Limited, Thailand

Diberhentikan dengan hormat efektif per tanggal 1 Juli 2017 berdasarkan hasil Rapat Umum Pemegang Saham Luar Biasa Perseroan yang diselenggarakan pada tanggal 16 Juni 2017.

Age 45

Education 1995 Bachelor Degree in Electrical Engineering,

Mahanakorn University of Technology, Thailand

Experience1996-2010 Production Manager The Siam Ceramic Group

Industries Co., Ltd.,Thailand2010-2011 Production Department Manager Thai – German

Ceramic Industry Public Co., Ltd., Thailand2011-2017 Plant Operation Advisor PT Keramika Indonesia

Assosiasi Tbk, Indonesia2015-2017 Operational Director PT Keramika Indonesia

Assosiasi Tbk, Indonesia

Present - Firing and Sorting Departement Manager, Thai-German Ceramic Industry Public Company Limited, Thailand

Honourably dismissed effective on 1 July 2017 based on the Resolution of Extraordinary General Meeting of Shareholders of the Company held on 16 June 2017.

Chaovalit Nieamtad - Direktur / Director




Umur 44

Pendidikan 1996 Bachelor Degree in

Engineering (Mechanical Engineering), Khon Kaen University, Thailand

2008 Master of Business Administration, Ramkhamhaeng University, Thailand

Pengalaman1996-1999 Engineer, Thai Ceramic Co., Ltd., Thailand2000-2010 Engineer (Mould and Frame Production), Thai

Ceramic Co., Ltd., Thailand2010-2016 Engineer and Mould Section Manager, Thai

Ceramic Co., Ltd., Thailand2017 Engineer, Thai Ceramic Co., Ltd., Thailand

Sekarang Production Director, PT Keramika Indonesia Asosiasi Tbk, Indonesia

Ditunjuk pertama kali menjadi Direktur di Perseroan efektif per 1 Juli 2017 berdasarkan hasil Rapat Umum Pemegang Saham Luar Biasa Perseroan yang diselenggarakan pada tanggal 16 Juni 2017.

Age 44

Education1996 Bachelor Degree in Engineering (Mechanical

Engineering), Khon Kaen University, Thailand

2008 Master of Business Administration, Ramkhamhaeng University, Thailand

Experience1996-1999 Engineer, Thai Ceramic Co., Ltd., Thailand2000-2010 Engineer (Mould and Frame Production), Thai

Ceramic Co., Ltd., Thailand2010-2016 Engineer and Mould Section Manager, Thai

Ceramic Co., Ltd., Thailand2017 Engineer, Thai Ceramic Co., Ltd., Thailand

Present Production Director, PT Keramika Indonesia Asosiasi Tbk, Indonesia

First appointed as Director of the Company based on the resolution of the Extraordinary General Meeting of Shareholders of the Company held on 16 June 2017.

Anusart Meethong - Direktur / Director


Umur 56

Pendidikan 1984 Industrial Academy,

Yogyakarta, Indonesia

1986 National Institute of Technology, Malang, Indonesia

Pengalaman1997-2003 Plant Manager, PT Keramika Indonesia

Assosiasi Tbk, Indonesia2003-2007 Manufacturing Manager, PT Keramika

Indonesia Assosiasi Tbk, Indonesia2007-2008 Assistant Director of Operations, PT Keramika

Indonesia Assosiasi Tbk, Indonesia

Sekarang Independent Director, PT Keramika Indonesia Assosiasi Tbk, Indonesia

Ditunjuk pertama kali menjadi Direktur di Perseroan berdasarkan hasil Rapat Umum Pemegang Saham Luar Biasa Perseroan yang diselenggarakan pada tanggal 12 Mei 2008 dan ditunjuk kembali berdasarkan Rapat Umum Pemegang Saham Tahunan Perseroan tanggal 3 Juni 2011, kemudian ditunjuk selaku Direktur Independen pada tanggal 12 Juni 2014.

Age 56

Pendidikan 1984 Industrial Academy, Yogyakarta, Indonesia

1986 National Institute of Technology, Malang, Indonesia

Pengalaman1997-2003 Plant Manager, PT Keramika Indonesia

Assosiasi Tbk, Indonesia2003-2007 Manufacturing Manager, PT Keramika

Indonesia Assosiasi Tbk, Indonesia2007-2008 Assistant Director of Operations, PT Keramika

Indonesia Assosiasi Tbk, Indonesia

Sekarang Independent Director, PT Keramika Indonesia Assosiasi Tbk, Indonesia

First appointed as Director of the Company based on the result of the Extraordinary General Meeting of Shareholders of the Company held on 12 May 2008, and re-appointed by the Annual General Meeting of Shareholders of the Company held on 3 June 2011, then appointed as Independent Director on 12 June 2014.

Handono Warih - Direktur Independen / Independent Director



SURAT PERNYATAAN ANGGOTA DIREKSI DAN ANGGOTA DEWAN KOMISARIS TENTANG TANGGUNG JAWAB ATAS LAPORAN TAHUNAN 2017 PT KERAMIKA INDONESIA ASSOSIASI Tbk

Kami yang bertanda tangan di bawah ini menyatakan bahwa semua informasi dalam Laporan Tahunan PT Keramika Indonesia Assosiasi Tbk tahun 2017 telah dimuat secara lengkapdan bertanggung jawab penuh atas kebenaran Laporan Tahunan perusahaan.

Demikian pernyataan ini dibuat dengan sebenarnya.

Jakarta, 18 April 2018

Dewan KomisarisBoard of Commissioners

DireksiBoard of Directors

Aree ChavalitcheewingulKomisaris Utama

President Commissioner

Numpol MalichaiDirektur Utama

President Director

Susalak Khiew-Orn DirekturDirector

Anusart MeethongDirekturDirector

Sarawut WorawatDirekturDirector

Chalermchai ChirasakyakulDirekturDirector

Handono WarihDirektur IndependenIndependent Director

Kittiphong PhotaranonKomisaris

Commissioner

Surasak KraiwitchaicharoenKomisaris

Commissioner

Padung LikitsajjakulKomisaris Independen

Independent Commissioner

Nantapong ChantrakulKomisaris

Commissioner

Thanarak SilavanichKomisaris Independen

Independent Commissioner

Tanggung Jawab Manajemen Atas Laporan TahunanManagement Responsibility for Annual Report

STATEMENT OF RESPONSIBILITY OF THE BOARD OF DIRECTORS AND THE BOARD OF COMMISSIONERS FOR ANNUAL REPORT 2017 OF PT KERAMIKA INDONESIA ASSOSIASI TBK

We the undersigned declare that all information in the Annual Repor 2017 PT Keramika Indonesia Assosiasi Tbk has been disclosed completely and correctly

The statement is truthfully certified.

Jakarta, 18 April 2018


PT Keramika Indonesia Assosiasi Tbk dan Entitas Anakand its SubsidiariesLaporan Keuangan Konsolidasian/Consolidated Financial Statements

Pada tanggal 31 Desember 2017 dan 2016 danTahun-tahun yang Berakhir 31 Desember 2017 dan 2016As of December 31, 2017 and 2016 and Years Ended December 31, 2017 and 2016

Laporan Keuangan KonsolidasiConsolidated Financial Statements

Prato Brown Prato Beige

58 Annual Report 2017 Laporan Tahunan 2017

5

HALAMAN INI SENGAJA DIKOSONGKAN

PT KERAMIKA INDONESIA ASSOSIASI Tbk DAN ENTITAS ANAK/ PT KERAMIKA INDONESIA ASSOSIASI Tbk AND SUBSIDIARIES

ISI/CONTENTS

SURAT PERNYATAAN DIREKSI TENTANG TANGGUNG JAWAB/ DIRECTORS’ STATEMENT OF RESPONSIBILITY

LAPORAN KEUANGAN KONSOLIDASIAN UNTUK TAHUN-TAHUN YANG BERAKHIR PADA

31 DESEMBER 2017 DAN 2016/ CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED 31 DECEMBER 2017 AND 2016: Halaman/Page

LAPORAN POSISI KEUANGAN KONSOLIDASIAN/

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION ................................................................... 1 - 2 LAPORAN LABA RUGI DAN PENGHASILAN KOMPREHENSIF LAIN KONSOLIDASIAN/

CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME .. 3 LAPORAN PERUBAHAN EKUITAS KONSOLIDASIAN/

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY ................................................................... 4 LAPORAN ARUS KAS KONSOLIDASIAN/

CONSOLIDATED STATEMENTS OF CASH FLOWS ................................................................................. 5

CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN/ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ............................................................... 6 - 46

LAPORAN AUDITOR INDEPENDEN/INDEPENDENT AUDITORS’ REPORT

5

1


LAPORAN POSISI KEUANGAN KONSOLIDASIAN/ CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

31 DESEMBER 2017 DAN 2016/31 DECEMBER 2017 AND 2016 (Dalam rupiah, kecuali dinyatakan khusus/In rupiah, unless otherwise specified)

Catatan/ 31 Desember/December Notes 2017 2016

ASET ASSETS

ASET LANCAR CURRENT ASSETS

Kas dan setara kas 4 9.384.169.874 33.960.630.274 Cash and cash equivalents Piutang usaha 5 Trade receivables

Pihak ketiga 2.574.622.457 5.439.214.130 Third parties Pihak berelasi 396.614.531.803 366.021.646.441 Related parties

Piutang lain-lain Other receivables Pihak ketiga 649.519.468 1.424.761.086 Third parties Pihak berelasi 4.618.499.003 3.045.998.798 Related parties

Persediaan, setelah dikurangi penyisihan penurunan nilai persediaan masing-masing sebesar Rp 17.733.867.432 pada tahun 2017 dan Rp 18.600.367.482 pada tahun 2016 6 103.727.893.040 104.654.714.165

Inventories, net of provision for decline in inventory value of Rp 17,733,867,432 in 2017

and Rp 18,600,367,482 in 2016

Uang muka 582.518.068 357.351.223 Advances Pajak dibayar dimuka 11 3.414.130.151 2.460.461.975 Prepaid taxes Beban dibayar dimuka 5.890.541.509 2.296.195.284 Prepaid expenses

TOTAL ASET LANCAR 527.456.425.373 519.660.973.376 TOTAL CURRENT ASSETS

ASET TIDAK LANCAR NON-CURRENT ASSETS

Aset tetap, setelah dikurangi akumulasi penyusutan dan penurunan nilai masing-masing sebesar Rp 1.196.457.313.866 pada tahun 2017 dan Rp 1.099.385.467.935 pada tahun 2016 7 1.225.691.073.605 1.321.545.244.459

Fixed assets, net of accumulated depreciation and

impairment loss of Rp 1,196,457,313,866 in 2017

and Rp 1,099,385,467,935 in 2016

Aset tak berwujud, bersih 123.834.866 1.055.290.518 Intangible assets, net Properti investasi 13.878.510.000 15.409.320.000 Investment properties

Aset tidak lancar lainnya 453.661.853 1.999.099.609 Other non-current assets

TOTAL ASET TIDAK LANCAR

1.240.147.080.324 1.340.008.954.586

TOTAL NON-CURRENT ASSETS

TOTAL ASET 1.767.603.505.697 1.859.669.927.962 TOTAL ASSETS

Lihat Catatan atas Laporan Keuangan Konsolidasian yang merupakan bagian tak terpisahkan dari laporan keuangan konsolidasian.

See Notes to the Consolidated Financial Statements, which form an integral part of these consolidated financial

statements.

2


LAPORAN POSISI KEUANGAN KONSOLIDASIAN (Lanjutan)/ CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Continued)

31 DESEMBER 2017 DAN 2016/31 DECEMBER 2017 AND 2016 (Dalam rupiah, kecuali dinyatakan khusus/In rupiah, unless otherwise specified)

Catatan/ 31 Desember/December LIABILITAS DAN EKUITAS Notes 2017 2016 LIABILITIES AND EQUITY

LIABILITAS JANGKA PENDEK CURRENT LIABILITIES

Utang usaha 8 Trade payables Pihak ketiga 85.517.632.277) 83.303.422.890) Third parties Pihak berelasi 6.691.117.845) -) Related Parties

Utang lain-lain 9 Other payables Pihak ketiga 2.040.436.822) 6.120.935.350) Third parties Pihak berelasi 32.245.224.446) 20.524.124.442) Related parties

Utang dividen 898.861.837) 898.861.837) Dividend payable Utang pajak 11 4.647.636.397) 11.936.534.709) Taxes payable Beban akrual 10 37.709.095.809) 43.063.822.466) Accrued expenses

TOTAL LIABILITAS JANGKA PENDEK 169.750.005.433) 165.847.701.694)

TOTAL CURRENT LIABILITIES

LIABILITAS JANGKA PANJANG NON-CURRENT LIABILITIES

Liabilitas pajak tangguhan, bersih 11 42.645.526.424) 55.055.882.123) Deferred tax liability, net

Liabilitas imbalan kerja 12 128.477.677.000) 118.736.272.000) Employee benefits obligation TOTAL LIABILITAS

JANGKA PANJANG 171.123.203.424) 173.792.154.123) TOTAL NON-CURRENT

LIABILITIES

TOTAL LIABILITAS 340.873.208.857) 339.639.855.817) TOTAL LIABILITIES

EKUITAS EQUITY

Modal saham 13 1.612.180.500.000) 1.612.180.500.000) Share capital Tambahan modal disetor 14 216.746.374.084) 216.746.374.084) Additional paid-in capital (Akumulasi defisit) saldo laba: (Accumulated deficit) retained earnings:

Ditentukan penggunaannya 7.159.174.474) 7.159.174.474) Appropriated

Belum ditentukan penggunaannya (450.927.977.401) (362.705.242.674) Unappropriated

Ekuitas yang dapat diatribusikan kepada pemilik entitas induk 1.385.158.071.157) 1.473.380.805.884)

Equity attributable to owners of the Company

Kepentingan nonpengendali 15 41.572.225.683) 46.649.266.261) Non-controlling interests

TOTAL EKUITAS 1.426.730.296.840) 1.520.030.072.145) TOTAL EQUITY

TOTAL LIABILITAS DAN EKUITAS 1.767.603.505.697) 1.859.669.927.962)

TOTAL LIABILITIES AND EQUITY



statements.

3


LAPORAN LABA RUGI DAN PENGHASILAN KOMPREHENSIF LAIN KONSOLIDASIAN/ CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2017 DAN 2016/ YEARS ENDED 31 DECEMBER 2017 AND 2016

(Dalam rupiah, kecuali dinyatakan khusus/In rupiah, unless otherwise specified)

Catatan/ Tahun berakhir 31 Desember/

Years ended 31 December Notes 2017 2016

Pendapatan 16 810.064.124.425) 863.714.584.966) Revenue Beban pokok pendapatan 17 (807.285.117.720) (915.875.675.474) Cost of revenue

LABA (RUGI) KOTOR 2.779.006.705) (52.161.090.508) GROSS PROFIT (LOSS)

Beban penjualan 18 (11.565.792.744) (25.746.818.536) Selling expenses Beban administrasi 19 (88.506.714.251) (88.527.961.400) Administrative expenses (Kerugian) keuntungan kurs. bersih (2.737.413.804) 2.505.819.562) Currency exchange (loss) gain, net Pendapatan (beban) lain-lain, bersih 20 4.596.968.612) (4.861.105.224) Other income(expenses), net

(98.212.952.187) (116.630.065.598)

RUGI USAHA (95.433.945.482) (168.791.156.106) OPERATING LOSS Pendapatan keuangan 723.269.302) 2.863.675.813) Finance income

RUGI SEBELUM PAJAK

PENGHASILAN

(94.710.676.180) (165.927.480.293)

LOSS BEFORE INCOME TAX Manfaat (beban) pajak penghasilan 11 9.409.699.625) (86.571.589.827) Income tax benefit (expense)

RUGI (85.300.976.555) (252.499.070.120) LOSS PENGHASILAN KOMPREHENSIF

LAIN

OTHER COMPREHENSIVE

INCOME Pos yang tidak akan direklasifikasi ke

laba rugi Items that will not be reclassified

to profit or loss Perubahan yang berasal dari pengukuran

kembali aktuaria atas kewajiban imbalan kerja (10.665.065.000) (12.211.043.000)

Changes resulting from actuarial remeasurements of employee

benefit obligation Pajak atas penghasilan komprehensif

lain 2.666.266.250) 3.052.760.750) Tax on other comprehensive

income

TOTAL PENGHASILAN KOMPREHENSIF LAIN (7.998.798.750) (9.158.282.250)

TOTAL OTHER COMPREHENSIVE INCOME

TOTAL PENGHASILAN

KOMPREHENSIF

(93.299.775.305) (261.657.352.370) TOTAL COMPREHENSIVE

INCOME

Rugi yang dapat diatribusikan kepada: Loss attributable to: Pemilik entitas induk (80.734.111.970) (240.197.622.831) Owners of the Company Kepentingan nonpengendali 15 (4.566.864.585) (12.301.447.289) Non-controlling interests (85.300.976.555) (252.499.070.120)

TOTAL PENGHASILAN

KOMPREHENSIF LAIN YANG DAPAT DIATRIBUSIKAN KEPADA:

TOTAL OTHER

COMPREHENSIVE INCOME ATTRIBUTABLE TO:

Pemilik entitas induk (7.488.622.757) (8.620.474.715) Owners of the Company Kepentingan nonpengendali 15 )(510.175.993) (537.807.535) Non-controlling interests (7.998.798.750) (9.158.282.250)

RUGI BERSIH PER SAHAM

22

(5,41) (16,09)

LOSS PER SHARE



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LAPORAN ARUS KAS KONSOLIDASIAN/ CONSOLIDATED STATEMENTS OF CASH FLOWS


(Dalam rupiah, kecuali dinyatakan khusus/In rupiah, unless otherwise specified)

Catatan/

Tahun berakhir 31 Desember/ Years ended 31 December

Notes 2017 2016

ARUS KAS DARI AKTIVITAS OPERASI:

CASH FLOWS FROM OPERATING ACTIVITIES:

Penerimaan kas dari pelanggan 781.615.402.439) 875.629.023.763) Cash received from customers Pembayaran kas ke pemasok dan

karyawan

(799.907.332.489) (847.584.456.440) Cash paid to suppliers and

employees Penerimaan bunga 738.330.408) 2.899.645.071) Interest income received Penerimaan dari aktivitas operasi

lainnya

1.664.545.455) -) Receipts from other operating

activities Pembayaran pajak penghasilan badan (1.979.814.259) (5.705.676.373) Income tax paid

Arus kas bersih (untuk) dari aktivitas operasi

(17.868.868.446) 25.238.536.021)

Net cash flows (used in) from operating activities)

ARUS KAS DARI AKTIVITAS INVESTASI:

CASH FLOWS FROM INVESTING ACTIVITIES:

Perolehan aset tetap 7 (11.021.281.955) (46.600.028.295) Acquisition of fixed assets Hasil penjualan aset tetap 2.808.000.001) 581.363.637) Proceeds from sales of fixed assets Perolehan aset tak berwujud (10.630.000) (32.521.000) Acquisition of intangible assets Hasil penjualan properti investasi

1.516.320.000) -)

Proceeds from sale of investment property

Arus kas bersih untuk aktivitas investasi

(6.707.591.954) (46.051.185.658)

Net cash flows used in investing activities

ARUS KAS DARI AKTIVITAS PENDANAAN

-) -)

CASH FLOWS FROM FINANCING ACTIVITY

Penurunan bersih kas dan setara kas

(24.576.460.400) (20.812.649.637) Net decrease in cash and cash

equivalents

Kas dan setara kas, awal tahun

33.960.630.274) 54.773.279.911) Cash and cash equivalents,

beginning of year Kas dan setara kas, akhir tahun 4 9.384.169.874) 33.960.630.274) Cash and cash equivalents, end of

year



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PT KERAMIKA INDONESIA ASSOSIASI Tbk DAN ENTITAS ANAK/ PT KERAMIKA INDONESIA ASSOSIASI Tbk AND SUBSIDIARIES/

CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN/ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

TAHUN - TAHUN YANG BERAKHIR 31 DESEMBER 2017 DAN 2016/ YEARS ENDED 31 DECEMBER 2017 AND 2016

(Dalam Rupiah, kecuali dinyatakan lain/In Rupiah, unless otherwise specified)

6

1. UMUM 1.GENERAL

a. Pendirian dan informasi lain Perseroan a. Establishment and other information of the Company

PT Keramika Indonesia Assosiasi Tbk (“Perseroan”) didirikan berdasarkan Akta No. 78 tertanggal 28 November 1968 dari Juliaan Nimrod Siregar Gelar Mangaradja Namora, S.H., notaris di Jakarta. Akta pendirian telah disahkan oleh Menteri Kehakiman Republik Indonesia berdasarkan Surat Keputusan No. J.A.5/22/5 tanggal 5 Maret 1969 dan telah diumumkan dalam Berita Negara Republik Indonesia No. 23 tanggal 21 Maret 1969, Tambahan No. 34. Pada awalnya Perseroan merupakan Penanaman Modal Asing (PMA) yang pendiriannya dalam rangka Undang-undang Penanaman Modal Asing No. 1 tahun 1967. Berdasarkan Surat Keputusan dari Ketua Badan Koordinasi Penanaman Modal (BKPM) No. 25/V/1992 tanggal 15 Juni 1992, status Perseroan berubah menjadi Penanaman Modal Dalam Negeri (PMDN).

PT Keramika Indonesia Assosiasi Tbk (“the Company”) was established based on Deed No. 78 dated 28 November 1968 of Juliaan Nimrod Siregar Gelar Mangaradja Namora, S.H., a public notary in Jakarta. The Deed of Establishment was approved by the Ministry of Justice of the Republic of Indonesia in his Decision Letter No. J.A.5/22/5 dated 5 March 1969 and was published in the State Gazette of the Republic of Indonesia No. 23 dated 21 March 1969, Supplement No. 34. The Company's status was changed from a Foreign Capital Investment Company (PMA), which establishment was based on the framework of Foreign Investment Law No. 1 year 1967 to a Domestic Capital Investment Company (PMDN). This change was based on the Decision Letter of the Chairman of Capital Investment Coordinating Board (BKPM) No. 25/V/1992 dated 15 June 1992.

Anggaran Dasar Perseroan telah mengalami beberapa kali perubahan, yang terakhir dengan Akta No. 23 tanggal 15 Juli 2015 dari Sri Hidianingsih Adi Sugijanto, S.H., notaris di Jakarta, mengenai penyesuaian Anggaran Dasar Perseroan dalam rangka memenuhi ketentuan Peraturan Otoritas Jasa Keuangan dan Peraturan Bursa Efek Indonesia. Perubahan ini telah dicatatkan ke Menteri Hukum dan Hak Asasi Manusia Republik Indonesia melalui Surat Penerimaan Pemberitahuan No. AHU-AH.01.03-0957059 Tahun 2015 tanggal 14 Agustus 2015.

The Company’s Articles of Association have been amended several times, most recently by Notarial Deed No. 23 dated 15 Juli 2015 of Sri Hidianingsih Adi Sugijanto, S.H., a public notary in Jakarta, concerning the amendments in the Company’s Articles of Association to comply with the Regulation of Financial Services Authority and Regulation of Indonesia Stock Exchange. The amendments were listed by the Minister of Law and Human Rights of the Republic Indonesia in his Decision Letter No. AHU-AH.01.03-0957059 Year 2015 dated 14 August 2015.

Sesuai dengan pasal 3 Anggaran Dasar Perseroan, ruang lingkup kegiatan Perseroan terutama meliputi "Industri dan Distribusi Produk Keramik". Kegiatan operasi komersial telah dimulai sejak tahun 1968. Pemasaran produk Perseroan dilakukan secara lokal dan telah diekspor ke beberapa negara di Asia, Eropa dan Amerika Serikat. Kantor pusat Perseroan beralamat di Cowell Tower Lt.2, Jl. Senen Raya 135, Jakarta Pusat, sedangkan lokasi pabrik Perseroan berada di Cileungsi dan Karawang.

In accordance with article 3 of the Company’s Articles of Association, the Company’s activities mainly include “Ceramic Products Industrial and Distribution”. The Company started its commercial operations in 1968. The Company sells its products locally and in various countries in Asia, Europe, and America. The Company's head office is located at Cowell Tower 2nd floor, Jl. Senen Raya 135, Central Jakarta, while its factories are located in Cileungsi and Karawang.





7

1. UMUM (Lanjutan) 1.GENERAL (Continued)

b. Komisaris, direksi, komite audit dan karyawan b. Commissioners, directors, audit committee and employees

Susunan dewan komisaris, direksi, dan komite audit Perseroan adalah sebagai berikut:

The composition of the Company’s commissioners, directors, and audit committee were as follows:

2017 2016 Komisaris Utama : Aree Chavalitcheewingul Pichit Maipoom : President Commissioner Komisaris : Nantapong Chantrakul

Kittiphong Photaranon Surasak Kraiwitchaicharoen

Kajohndet Sangsuban Aree Chavalitcheewingul Surasak Kraiwitchaicharoen

: Commissioners

Komisaris Independen : Padung Likitsajjakul Padung Likitsajjakul : Independent Commissioners Thanarak Silavanich Thanarak Silavanich Direktur Utama : Numpol Malichai Pramoth Phromaue : President Director Direktur : Chalermchai Chirasakyakul

Sarawut Worawat Chaovalit Nieamtad Kaewsawan Amatachiwin Susalak Khiew-orn

Chalermchai Chirasakyakul Sarawut Worawat Chaovalit Nieamtad Kaewsawan Amatachiwin Jamrak Thientawat

: Directors

Direktur Independen : Handono Warih Handono Warih : Independent Director Komite audit Audit committee Ketua : Padung Likitsajjakul Padung Likitsajjakul : Chairman Anggota : Firdaus Erossen Simonli Firdaus Erossen Simonli : Member Anggota : Lamhot Lumban Tobing Lamhot Lumban Tobing : Member

Per 31 Desember 2017 dan 2016, Grup memperkerjakan sejumlah 1.524 karyawan (tidak diaudit) dan 1.757 karyawan (tidak diaudit).

As of 31 December 2017 and 2016, the Group had 1,524 employees (unaudited) and 1,757 employees (unaudited), respectively.

c. Penawaran umum saham Perseroan c. The Company’s public offering

Sebelum dilakukannya penawaran umum perdana atas saham Perseroan, para pendiri Perseroan memiliki 60.000.000 saham Perseroan dengan nilai nominal Rp 1.000 per saham.

Prior to the initial public offering, the founders owned 60,000,000 shares with par value of Rp 1,000 per share.

Pada tanggal 4 November 1994, Perseroan memperoleh pernyataan efektif dari Ketua Badan Pengawas Pasar Modal (Bapepam) dengan surat No. S-1816/PM/1994 untuk melakukan penawaran umum perdana atas 25.000.000 saham dengan nilai nominal Rp 1.000 per saham. Pada tanggal 8 Desember 1994, seluruh saham tersebut telah dicatatkan pada Bursa Efek Jakarta dan Surabaya.

On 4 November 1994, the Company received the effective statement from the Chairman of the Capital Market Supervisory Agency (Bapepam) through the letter No. S- 1816/PM/1994 to perform the Initial Public Offering of 25,000,000 shares with par value of Rp 1,000 per share. On 8 December 1994, all these shares were listed in Jakarta and Surabaya Stock Exchanges.

Pada tanggal 3 Desember 1996, pemegang saham Perseroan menyetujui pemecahan 1 menjadi 2 saham Perseroan. Nilai nominal Rp 1.000 per saham dipecah menjadi 2 saham dengan nilai nominal Rp 500 per saham. Pemecahan saham menyebabkan peningkatan saham Perseroan dari 85.000.000 saham menjadi 170.000.000 saham.

On 3 December 1996, the Company’s shareholders approved the Company’s 2-for-1 stock split. The par value of Rp 1,000 per share was split into 2 shares with par value of Rp 500 per share. The stock split resulted in an increase of the Company’s shares from 85,000,000 shares to 170,000,000 shares.





8


c. Penawaran umum saham Perseroan (Lanjutan) c. The Company’s public offering (Continued) Pada tanggal 18 Juni 1997, Perseroan memperoleh pernyataan efektif dari Ketua Bapepam dengan surat No. S-1345/PM/1997 untuk melakukan penawaran umum terbatas dengan Hak Memesan Efek Terlebih Dahulu sebesar 255.000.000 saham dengan nilai nominal Rp 500 per saham. Seluruh saham tersebut, sebanyak 425.000.000 saham, telah dicatatkan pada Bursa Efek Jakarta dan Surabaya pada tanggal 9 Juli 1997.

On 18 June 1997, the Company received the effective statement from the Chairman of Bapepam through the letter No. S-1345/PM/1997 to perform the Limited Public Offering with pre-emptive rights of 255,000,000 shares with par value of Rp 500 per share. On 9 July 1997, all these shares, i.e. 425,000,000 shares were listed in Jakarta and Surabaya Stock Exchanges.

Pada tanggal 29 September 2004, saham Perseroan sudah tidak tercatat (delisting) pada Bursa Efek Jakarta berdasarkan pengumuman PT Bursa Efek Jakarta No. Peng-07/BEJ-PSR/DEL/08/-2004 tanggal 23 Agustus 2004 dan No. Peng-11/BEJ-PSR/DEL/09/-2004 tanggal 23 September 2004.

On 29 September 2004, the Company's shares were delisted in Jakarta Stock Exchange based on the announcement of PT Bursa Efek Jakarta No. Peng-07/BEJ-PSR/DEL/08/-2004 dated 23 August 2004 and No. Peng-11/BEJ-PSR/DEL/09-2004 dated 23 September 2004.

Bursa Efek Surabaya dan Bursa Efek Jakarta bergabung/merger pada tanggal 30 November 2007 dan berganti nama menjadi Bursa Efek Indonesia (BEI) Per tanggal 1 Desember 2007, semua saham Perseroan sebanyak 425.000.000 saham telah tercatat di BEI. Pada tanggal 3 Desember 2007, saham Perseroan dalam status tidak dapat diperdagangkan (suspensi).

The Surabaya Stock Exchange and the Jakarta Stock Exchange merged on 30 November 2007 and changed the name to Indonesia Stock Exchange (“IDX”). As of 1 December 2007, all the Company’s outstanding shares totaling 425,000,000 shares are listed in IDX. On 3 December 2007, the listing status of the Company’s shares was suspended.

Pada tanggal 12 Mei 2008, Rapat Umum Pemegang Saham Luar Biasa menyetujui penambahan Modal Tanpa Hak Memesan Efek Terlebih Dahulu sebagai hasil konversi utang seperti yang telah disepakati dengan para kreditur dalam Master Debt Restructuring Agreement (MDRA). Berdasarkan surat dari PT Bursa Efek Indonesia (BEI) No. S-03824/BEI.PSR/07-2008 tanggal 9 Juli 2008, saham Perseroan yang tercatat di BEI adalah sebanyak 425.000.000 saham Seri A dengan nilai nominal Rp 500 per saham dan 8.000.000.000 saham Seri B dengan nilai nominal Rp 250 per saham.

On 12 May 2008, the Extraordinary Meeting of Shareholders approved addition in capital without pre-emptive rights as a result of conversion loans to capital as agreed by the creditors in the Master Debt Restructring Agreement (MDRA). IDX through its letter No. S-03824/BEI.PSR/07-2008 dated on 9 July 2008, stated that the Company's shares that were listed in the Stock Exchange consists of 425,000,000 Series A shares with par value of Rp 500 per share and 8,000,000,000 Series B shares with par value of Rp 250 per share.

Pada tanggal 15 Oktober 2008, berdasarkan Pengumuman Pencabutan Penghentian Sementara Perdagangan Efek PT Keramika Indonesia Assosiasi Tbk, No. Peng-005/BEI.PSR/UPT/10-2008, BEI telah mencabut penghentian sementara perdagangan efek Perseroan, sehingga saham Perseroan kembali dapat diperdagangkan mulai tanggal 16 Oktober 2008.

On 15 October 2008, based on the Announcement Revocation of Temporary Suspension of PT Keramika Indonesia Assosiasi Tbk’s shares No. Peng-005/BEI.PSR/UPT/10-2008, IDX revoked the temporary suspension, consequently, the Company’s shares were listed again starting on 16 October 2008.





9


c. Penawaran umum saham Perseroan (Lanjutan) c. The Company’s public offering (Continued) Pada bulan Juni 2011, SCG Building Materials, Co., Ltd. mengakuisisi seluruh saham milik Fairrington, Inc. dan Concept Link, Limited sebanyak 7.875.000.000 saham Seri B.

In June 2011, SCG Building Materials, Co. Ltd. acquired all the Company’s shares owned by Fairrington, Inc. and Concept Link, Limited (totaling 7,875,000,000 Series B shares).

Sehubungan dengan kuasi reorganisasi, pada tanggal 10 Oktober 2011 para pemegang saham menyetujui untuk menurunkan nilai nominal saham Perseroan, sehingga modal ditempatkan dan disetor berkurang dari Rp 2.212.500.000.000 (425.000.000 saham seri A dengan nilai nominal Rp 500 dan 8.000.000.000 saham seri B dengan nilai nominal Rp 250) menjadi Rp 929.250.000.000 (425.000.000 saham seri A dengan nilai nominal Rp 210 dan 8.000.000.000 saham seri B dengan nilai nominal Rp 105).

In relation to the quasi reorganization, on 10 October 2011 the Company’s shareholders approved to reduce the par value of share, consequently the issued and paid up share capital was reduced from Rp 2,212,500,000,000 (425,000,000 series A shares with par value of Rp 500 and 8,000,000,000 series B shares with par value of Rp 250) to Rp 929,250,000,000 (425,000,000 series A shares with par value of Rp 210 and 8,000,000,000 series B shares with par value of Rp 105).

Pada tahun 2012, Perseroan melakukan Penawaran Umum Terbatas II (“PUT II”) kepada para pemegang saham dalam rangka penerbitan Hak Memesan Efek Terlebih Dahulu (“HMETD”) dengan menawarkan 6.504.100.000 saham seri B dengan nilai nominal Rp 105 per saham dengan harga penawaran sebesar Rp 128 per saham. Sebanyak 6.503.410.753 lembar saham diambil oleh SCG Building Materials, Co., Ltd., dan sebanyak 689.247 lembar saham diambil oleh masyarakat. Pada tanggal 28 November 2012, dalam rangka untuk mematuhi peraturan Bapepam-LK, SCG Building Materials., Co. Ltd melepaskan 3.537.500 saham Perseroan seri B miliknya ke masyarakat.

In 2012, the Company conducted Limited Public Offering II (“PUT II”) to its shareholders with pre-emptive rights by offering 6,504,100,000 Series B shares with par value of Rp 105 per share and the offering price of Rp 128 per share. A total of 6,503,410,753 shares were acquired by SCG Building Materials., Co. Ltd. and 689,247 shares were taken by the public.

On 28 November 2012, in order to comply with Bapepam-LK regulation, SCG Building Materials., Co. Ltd released its 3,537,500 series B shares of the Company to the public.

Pada tanggal 31 Desember 2017 dan 2016, jumlah seluruh saham yang telah ditempatkan dan disetor penuh adalah sebanyak 425.000.000 lembar saham Seri A, dan 14.504.100.000 lembar saham seri B telah tercatat di BEI.

As of 31 December 2017 and 2016, all shares issued and fully paid consists of 425,000,000 series A shares and 14,504,100,000 series B shares were listed in IDX.

Pada bulan Juli 2017, saham Perseroan dihentikan perdagangannya di bursa karena tidak mematuhi peraturan I-A BEI. Berdasarkan peraturan BEI I-A, "jumlah saham yang dimiliki oleh pemegang saham yang tidak mengendalikan dan tidak substansial sekurang-kurangnya 50.000.000 (lima puluh juta) saham yang terdiri sekurang-kurangnya 7,5% (tujuh koma lima persen) dari jumlah saham yang disetor". Meskipun jumlah pemegang saham Perseroan yang tidak mengendalikan dan tidak substantial melebihi dari jumlah minimum yang ditentukan, tetapi kepemilikan mereka hanya sebesar 3,69% dari jumlah saham Perseroan yang disetor.

In July 2017, the Company’s shares were suspended from trading due to a technical non-compliance with IDX Regulation I-A. Under IDX Regulation I-A, “total shares owned by Non-controlling and Non-substantial Shareholders should hold at least 50,000,000 (fifty million) shares comprising at least 7.5% (seven point five percent) of the total number of shares of paid-up capital”. Although the Company’s non-controlling and non-substantial shareholders’ total holding was above the specified minimum, their interest comprised only 3.69% of the Company’s total number shares of paid-up capital.





10


c. Penawaran umum saham Perseroan (Lanjutan) c. The Company’s public offering (Continued)

Untuk menyelesaikan ketidakpatuhan terhadap minimum persentase kepemilikan, pemegang saham mayoritas secara aktif mencari investor untuk mendivestasikan sebagian kepemilikannya.

In order to remediate the non-compliance with the limitation on ownership percentage, the majority shareholder is actively seeking to partially divest its ownership.

d. Struktur grup d. Group structure

Perseroan memiliki kepemilikan langsung pada entitas anak berikut ini:

The Company has direct ownership in the following subsidiaries:

Entitas Anak/ Lokasi/ Jenis Usaha/

Tahun mulai beroperasi

komersial/Year commenced commercial

Persentase Kepemilikan/ Percentage of

Ownership Total aset sebelum eliminasi/ Total

assets before elimination The Company (PT) Domicile Nature of Business operations 2017 dan/and 2016 2017 2016

PT KIA Keramik Mas (“KKM”)

Bogor Manufaktur Genteng Keramik/

Ceramic Tile Manufacturing

1984 99,21 641.139.688.668 657.802.131.441

PT KIA Serpih Mas (“KSM”)

Bogor Manufaktur Lantai Keramik/Ceramic

Tile Floors Manufacturing

1970 86,68 768.900.863.683 854.419.951.778

2. DASAR PENYUSUNAN LAPORAN 2.BASIS OF PREPARATION OF THE CONSOLIDATED KEUANGAN KONSOLIDASIAN FINANCIAL STATEMENTS

a. Pernyataan kepatuhan a. Statement of compliance

Laporan keuangan konsolidasian disusun dan disajikan berdasarkan Standar Akuntansi Keuangan di Indonesia (“SAK”) dan Peraturan Bapepam-LK No. VIII.G.7 mengenai Pedoman Penyajian Laporan Keuangan.

The consolidated financial statements have been prepared and presented in accordance with Indonesian Financial Accounting Standards (“SAK”) and the Bapepam-LK Regulation No. VIII.G.7 regarding Financial Statements Presentation Guidelines.

b. Direksi Perseroan menyetujui laporan keuangan konsolidasian Perseroan untuk diterbitkan pada 28 Maret 2018.

b. The Company’s directors approved the consolidated financial statements for issuance on 28 March 2018.

c. Prinsip konsolidasi c. Basis of consolidation

Laporan keuangan konsolidasian merupakan konsolidasian dari laporan keuangan Perseroan dengan laporan keuangan entitas anak.

The consolidated financial statements represent the consolidation of the financial statements of the Company with the financial statements of its subsidiaries.

Entitas anak dikonsolidasi sejak tanggal Perseroan memperoleh pengendalian secara efektif dan tidak lagi dikonsolidasi sejak tanggal pengendalian tersebut tidak lagi dimiliki.

Subsidiaries are consolidated from the date on which the Company obtains effective control, and are no longer consolidated from the date such control ceases.





11

2. DASAR PENYUSUNAN LAPORAN 2.BASIS OF PREPARATION OF THE KEUANGAN KONSOLIDASIAN CONSOLIDATED FINANCIAL STATEMENTS (Lanjutan) (Continued)

c. Prinsip konsolidasi (Lanjutan) c. Basis of consolidation (Continued)

Suatu pengendalian atas entitas anak dianggap ada bilamana Perseroan terekspos atau memiliki hak atas imbal hasil variabel dari keterlibatannya dengan entitas anak dan memiliki kemampuan untuk mempengaruhi imbal hasil tersebut melalui kekuasaannya atas entitas anak.

Control over a subsidiary is presumed to exist if the Company is exposed to, or has rights to, variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power over the subsidiary.

Kebijakan akuntansi yang digunakan dalam penyusunan laporan keuangan konsolidasian telah diterapkan secara konsisten oleh entitas anak dalam semua hal yang material, kecuali bila dinyatakan lain.

The accounting policies adopted in the consolidated financial statements have been consistenly applied by the subsidiaries, unless otherwise stated.

Saldo dan transaksi signifikan antar perusahaan, termasuk penghasilan dan beban, dieliminasi secara penuh. Keuntungan dan kerugian hasil dari transaksi antar perusahaan yang belum direalisasi, dieliminasi dalam laporan keuangan konsolidasian.

Significant intercompany balances and transactions, including income and expenses, are eliminated in full. Unrealized gains and losses resulting from intercompany transactions are eliminated in the consolidated financial statements.

Bila pengendalian atas suatu entitas diperoleh dalam periode berjalan, hasil usaha entitas tersebut dimasukkan dalam laporan keuangan konsolidasian sejak tanggal pengendalian dimulai. Bila pengendalian berakhir dalam periode berjalan, hasil usaha entitas tersebut dimasukkan ke dalam laporan keuangan konsolidasian untuk periode dimana pengendalian masih berlangsung.

Where control of an entity is obtained during a financial period, its results are included in the consolidated financial statements from the date on which control commences. Where control ceases during a financial period, its results are included in the consolidated financial statements for the part of the period during which control still existed.

Perubahan yang mempengaruhi persentase kepemilikan dan ekuitas entitas anak disajikan sebagai selisih transaksi dengan pihak nonpengendali dalam bagian ekuitas pada laporan posisi keuangan konsolidasian.

Changes affecting the percentage of ownership and equity of subsidiaries are presented as difference in value arising from transactions with non-controlling interests within the equity section of the consolidated statement of financial position.

Kepentingan nonpengendali diakui pada tanggal kombinasi bisnis yang selanjutnya disesuaikan dengan proporsi atas perubahan ekuitas entitas anak.

Non-controlling interests is recognized at the date of business combination and adjusted by proportion of changes in equity of subsidiaries.

Kepentingan nonpengendali disajikan pada bagian ekuitas dalam laporan posisi keuangan konsolidasian, terpisah dari ekuitas yang dapat diatribusikan kepada pemilik entitas induk. Laba atau rugi dan setiap komponen pendapatan komprehensif lain diatribusikan kepada pemilik entitas induk dan kepada kepentingan nonpengendali berdasarkan proporsi kepemilikan.

Non-controlling interests is presented in the consolidated statement of financial position within equity, separately from the equity attributable to the owners of the Company. Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the non-controlling interests based on the ownership interest proportionally.





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d. Laporan arus kas d. Statement of cash flows

Laporan arus kas konsolidasian menyajikan perubahan dalam kas dan setara kas dari aktivitas operasi, investasi dan pendanaan, dan disusun dengan metode langsung.

The consolidated statement of cash flows presents the changes in cash and cash equivalents from operating, investing and financing activities, and is prepared using the direct method.

e. Dasar pengukuran e. Basis of measurement

Laporan keuangan konsolidasian disusun atas dasar akrual dengan menggunakan konsep nilai historis, kecuali dimana standar akuntansi mensyaratkan pengukuran pada nilai wajar.

The consolidated financial statements are prepared on the accrual basis using the historical cost concept, except where the accounting standards require fair value measurement.

f. Mata uang fungsional dan penyajian f. Functional and presentation currency

Laporan keuangan konsolidasian disajikan dalam Rupiah, yang merupakan mata uang fungsional Perseroan termasuk entitas anak. Semua informasi keuangan disajikan dalam Rupiah.

The consolidated financial statements are presented in Rupiah, which is the functional currency of the Company including subsidiaries. All financial information presented in Rupiah.

g. Penggunaan pertimbangan, estimasi dan asumsi g. Use of judgments, estimates and assumptions

Penyusunan laporan keuangan konsolidasian sesuai dengan SAK mengharuskan manajemen untuk membuat pertimbangan, estimasi dan asumsi yang mempengaruhi penerapan kebijakan akuntansi dan jumlah aset, liabilitas, pendapatan dan beban. Walaupun estimasi tersebut berdasarkan pemahaman terbaik manajemen atas kejadian dan kegiatan terkini, hasil aktual dapat berbeda dari nilai yang telah di estimasi.

The preparation of consolidated financial statements in conformity with SAK requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Although those estimates are based on management’s best knowledge of current events and activities, actual results may differ from the estimated amounts.

Estimasi dan asumsi yang mendasarinya ditinjau secara berkesinambungan. Perubahan terhadap estimasi akuntansi diakui secara prospektif.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized prospectively.

Informasi mengenai asumsi dan estimasi ketidakpastian yang dapat mengakibatkan terjadinya penyesuaian yang material pada tahun berikutnya termasuk didalam catatan atas laporan keuangan konsolidasian berikut ini:

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year are included in the following notes of the consolidated financial statements:

Catatan 7: estimasi masa manfaat aset tetap dan pengujian penurunan; asumsi utama sebagai dasar penentuan nilai yang dapat terpulihkan.

Catatan 11: pengakuan aset pajak tangguhan: ketersediaan laba kena pajak mendatang untuk memungkinkan Grup mengakui aset pajak tangguhan atas kompensasi rugi fiskal; dan

Catatan 12: pengukuran liabilitas imbalan kerja: asumsi aktuaris.

Note 7: fixed assets useful lives estimation and impairment test; key assumption underlying recoverable amounts.

Note 11: recognition of deferred tax assets: availability of future taxable profit to enable the Group to recognize deferred tax assets for tax loss carryforwards ; and

Note 12: measurement of employee benefits obligation: actuarial assumptions.





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g. Penggunaan pertimbangan, estimasi dan asumsi

(Lanjutan) g. Use of judgments, estimates and assumptions

(Continued)

Sejumlah kebijakan dan pengungkapan akuntansi membutuhkan pengukuran nilai wajar, baik untuk aset dan liabilitas keuangan maupun aset dan liabilitas non-keuangan.

A number of accounting policies and disclosures require the measurement of fair values for both financial and non-financial assets and liabilities.

Pada saat mengukur nilai wajar suatu aset atau liabilitas, Grup menggunakan data pasar yang dapat diobservasi yang relevan. Nilai wajar ditentukan dengan menggunakan hirarki input dalam teknik penilaian untuk aset dan liabilitas berikut ini:

When measuring the fair value of an asset or liability, the Group uses observable market data to the extent possible. Fair values are determined using the following hierarchy of inputs used in the valuation techniques for assets and liabilities:

Level 1: harga kuotasian (tanpa penyesuaian) di pasar aktif untuk aset atau liabilitas yang identik.

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: input selain harga kuotasian yang termasuk dalam Level 1, yang dapat diobservasi baik secara langsung atau tidak langsung.

Level 2: inputs other than quoted prices included in Level 1 that are observable either directly or indirectly.

Level 3: input yang tidak didasarkan pada data pasar (input yang tidak dapat diobservasi).

Level 3: inputs that are not based on observable market data (unobservable inputs).

Jika input yang digunakan untuk mengukur nilai wajar aset atau liabilitas diperoleh dari beberapa level yang berbeda dalam hirarki nilai wajar, maka pengukuran nilai wajar untuk keseluruhan kelompok aset atau liabilitas dikategorikan dengan level input terendah yang signifikan terhadap keseluruhan pengukuran (Level 3 adalah level input terendah).

If the inputs used to measure the fair value of an asset or a liability are drawn from a mixture of different level sources of the fair value hierarchy, then the fair value measurement for the entire class of the asset or liability is considered to have been done using the lowest level input that is significant to the entire measurement (Level 3 being the lowest).

h. Penerapan Pernyataan Standar Akuntansi Keuangan

(“PSAK”) baru dan revisi dan Interpretasi Standar Akuntansi Keuangan (“ISAK”)

h. Adoption of new and revised Statements of Financial Accounting Standards (“PSAK”) and Interpretations of PSAK (“ISAK”)

(i) Standar yang berlaku efektif pada tahun berjalan (i) Standards and amendments effective in the

current year

Dalam tahun berjalan, Grup telah menerapkan sejumlah amandemen dan penyesuaian tahunan atas PSAK, dan juga interpretasi baru atas PSAK yang dikeluarkan oleh Dewan Standar Akuntansi Keuangan dari Ikatan Akuntan Indonesia yang relevan dan efektif untuk periode akuntansi yang dimulai pada 1 Januari 2017.

In the current year, the Group has applied a number of amendment and annual improvements to PSAK, and a new interpretation to PSAK issued by the Financial Accounting Standard Board of the Indonesian Institute of Accountants that are relevant and effective for accounting period beginning on 1 January 2017.





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(“PSAK”) baru dan revisi dan Interpretasi Standar Akuntansi Keuangan (“ISAK”) (Lanjutan)

h. Adoption of new and revised Statements of Financial Accounting Standards (“PSAK”) and Interpretations of PSAK (“ISAK”) (Continued)

(i) Standar yang berlaku efektif pada tahun berjalan (i) Standards and amendments effective in the

current year

Standar-standar akuntansi keuangan dan interpretasi berikut ini telah diterbitkan atau diamandemen atau disesuaikan, namun tidak menimbulkan perubahan substansial terhadap kebijakan akuntansi Grup dan tidak berdampak material atas jumlah yang dilaporkan untuk periode berjalan atau periode sebelumnya:

The following accounting standards and interpretation have been issued or amended or improved, but did not result in substantial changes to the Group’s accounting policies and had no material effect on the amounts reported for the current or prior financial periods:

- PSAK 1, “Penyajian Laporan Keuangan” - PSAK 1, “Presentation of Financial Statements”

- PSAK 24, “Imbalan Kerja” - PSAK 24, “Employee Benefits” - PSAK 58, “Aset Tidak Lancar yang Dimiliki

untuk Dijual dan Operasi yang Dihentikan” - PSAK 58, “Non-current Assets Held for Sale

and Discontinued Operation” - PSAK 60, “Instrumen Keuangan:

Pengungkapan” - PSAK 60, “Financial Instruments:

Disclosures” - ISAK 32, “Definisi dan Hierarki Standar

Akuntansi Keuangan”. - ISAK 32, “Definition and Hierarchy of SAK”.

Penerapan amandemen, penyesuaian dan interpretasi atas PSAK sebagaimana tersebut di atas tidak memiliki dampak signifikan terhadap laporan keuangan konsolidasian Grup.

The adoption of the above mentioned amendments, improvements and interpretation of PSAK does not have any significant impact to the Group’s consolidated financial statements.

(ii) Standar dan interpretasi yang telah diterbitkan

tapi belum diterapkan (ii) Standards and interpretation issued, but not yet

adopted

Berikut ini adalah standar-standar akuntansi dan interpretasi yang telah diterbitkan atau diamandemen atau disesuaikan, namun belum berlaku efektif pada tahun 2017:

The following standards and interpretation were issued or amended or improved, but are not yet effective in 2017:

- PSAK 2, “Laporan Arus Kas” - PSAK 2, “Statement of Cash Flow” - PSAK 15, “Investasi pada Entitas Asosiasi

dan Ventura Bersama” - PSAK 15, “Investment in Associates and Joint

Ventures” - PSAK 16, “Aset Tetap” - PSAK 16, “Fixed Assets” - PSAK 46, “Pajak Penghasilan” - PSAK 46, “Income Taxes” - PSAK 53, “Pembayaran Berbasis Saham” - PSAK 53, “Share-based Payment” - PSAK 67, “Pengungkapan Kepentingan

dalam Entitas Lain” - PSAK 67, “Disclosure of Interests in Other

Entities” - PSAK 69, “Agrikultur” - PSAK 69, “Agriculture” - PSAK 71, “Instrumen Keuangan” - PSAK 71, “Financial Instruments” - PSAK 72, “Pendapatan dari Kontrak dengan

Pelanggan” - PSAK 72, “Revenue from Contracts with

Customers” - PSAK 73, “Sewa” - PSAK 73, “Leases” - ISAK 33, “Transaksi Valuta Asing dan

Imbalan di Muka”. - ISAK 33, “Foreign Currency Transaction and

Advance Consideration”.





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(“PSAK”) baru dan revisi dan Interpretasi Standar Akuntansi Keuangan (“ISAK”) (Lanjutan)

h. Adoption of new and revised Statements of Financial Accounting Standards (“PSAK”) and Interpretations of PSAK (“ISAK”) (Continued)

(ii) Standar dan interpretasi yang telah diterbitkan

tapi belum diterapkan (Lanjutan) (ii) Standards and interpretation issued, but not yet

adopted (Continued)

Sampai dengan tanggal penerbitan laporan keuangan konsolidasian, manajemen masih dalam proses mengevaluasi dampak dari standar-standar dan interpretasi tersebut terhadap laporan keuangan konsolidasian.

As of the issuance date of the consolidated financial statements, management is still evaluating the effect of adoption of these standards and interpretation on the consolidated financial statements.

3. IKHTISAR KEBIJAKAN AKUNTANSI 3. SUMMARY OF SIGNIFICANT ACCOUNTING SIGNIFIKAN POLICIES

Kebijakan-kebijakan akuntansi yang dijelaskan dibawah ini telah diterapkan secara konsisten pada semua periode yang disajikan di laporan keuangan ini.

The accounting policies set out below have been applied consistently to all periods presented in these financial statements.

a. Transaksi dengan pihak-pihak berelasi a. Related parties transactions

Dalam laporan keuangan ini, istilah pihak berelasi yang digunakan sesuai dengan PSAK 7, Pengungkapan Pihak-pihak Berelasi. Seluruh transaksi dan saldo yang signifikan dengan pihak-pihak berelasi, diungkapkan dalam catatan atas laporan keuangan konsolidasi.

In these financial statements, the related party terms used are in accordance with PSAK 7, Related Parties Disclosures. All significant transactions and balances with related parties, are disclosed in the notes to the consolidated financial statements.

b. Setara kas b. Cash equivalents

Deposito berjangka pendek yang periode jatuh temponya tidak lebih dari tiga bulan dari tanggal perolehannya dianggap sebagai setara kas.

Short-term time deposits with original maturities of three months or less are considered as cash equivalents.

c. Instrumen keuangan c. Financial instruments

Aset keuangan Grup terdiri dari kas dan setara kas, piutang usaha, piutang lain-lain, dan aset tidak lancar lainnya yang dikategorikan sebagai “Pinjaman yang diberikan dan piutang”. Liabilitas keuangan Grup terdiri dari utang usaha, utang lain-lain, utang dividen, dan beban akrual yang dikategorikan sebagai “Liabilitas keuangan yang diukur pada biaya perolehan diamortisasi”.

The Group’s financial assets comprise cash and cash equivalents, trade receivables, other receivables, and other non-current assets, which are categorized as “Loans and receivables”. The Group’s financial liabilities consists of trade payables, other payables, dividend payable, and accrued expenses, which are categorized as “Financial liabilities measured at amortized costs”.





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3. IKHTISAR KEBIJAKAN AKUNTANSI 3. SUMMARY OF SIGNIFICANT ACCOUNTING SIGNIFIKAN (Lanjutan) POLICIES (Continued)

c. Instrumen keuangan (Lanjutan) c. Financial instruments (Continued)

Suatu instrumen keuangan diakui pada saat Grup menjadi pihak dari ketentuan kontrak suatu instrumen keuangan. Aset keuangan dihentikan pengakuannya pada saat hak kontraktual Grup atas arus kas yang berasal dari aset keuangan tersebut kadaluwarsa, yaitu ketika aset dialihkan ke pihak lain tanpa mempertahankan pengendalian atau pada saat secara substansial seluruh risiko dan manfaat telah dialihkan. Liabilitas keuangan dihentikan pengakuannya jika liabilitas Grup kadaluwarsa, atau dilepaskan atau dibatalkan.

A financial instrument is recognized when the Group becomes a party to the contractual provisions of the instrument. Financial assets are derecognized when the Group’s contractual rights to the cash flows from the financial assets expire, i.e. when the asset is transferred to another party without retaining control, or when substantially all risks and rewards are transferred. Financial liabilities are derecognized if the Group’s obligations expire, or are discharged or cancelled.

Pada pengukuran awal, aset keuangan yang dikategorikan sebagai pinjaman yang diberikan dan piutang diukur pada nilai wajar, ditambah biaya transaksi yang dapat diatribusikan secara langsung. Setelah pengukuran awal, aset keuangan tersebut dicatat sebesar biaya perolehan diamortisasi, setelah dikurangi penyisihan kerugian penurunan nilai, jika diperlukan. Biaya perolehan diamortisasi diukur dengan mendiskontokan jumlah aset dengan menggunakan suku bunga efektif, kecuali efek diskonto tidak signifikan. Suku bunga efektif adalah suku bunga yang mendiskontokan arus kas masa depan yang diharapkan ke nilai bersih tercatat, pada pengakuan awal. Efek bunga atas penerapan metode suku bunga efektif diakui dalam laba rugi.

Financial assets that are categorized as loans and receivables are initially measured at fair value, plus any directly attributable transaction cost. Subsequent to initial measurement, they are carried at amortised cost, net of provision for impairment loss, if necessary. Amortized cost is measured by discounting the asset amounts using the effective interest rate, unless the effect of discounting would be insignificant. The effective interest rate is the rate that discounts expected future cash flows to the net carrying amount, on initial recognition. Interest effects from the application of the effective interest method are recognized in profit or loss.

Penyisihan penurunan nilai diakui untuk aset keuangan yang dikategorikan sebagai pinjaman yang diberikan dan piutang, bila terdapat bukti obyektif bahwa Grup tidak akan mampu memulihkan nilai tercatat sesuai dengan ketentuan awal dari instrumen tersebut.

An impairment provision is recognized for financial assets that are categorized as loans and receivables when there is objective evidence that the Group will not be able to recover the carrying amounts according to the original terms of the instrument.

Jumlah kerugian penurunan nilai merupakan selisih antara nilai tercatat aset keuangan dan nilai kini dari estimasi arus kas masa depan yang didiskonto menggunakan suku bunga efektif awal. Perubahan penyisihan penurunan nilai diakui dalam laba rugi.

The amount of the impairment loss is the difference between the carrying amount of the financial asset and the present value of its estimated future cash flows, discount at the original effective interest rate. Changes in the impairment provision are recognized in profit or loss.


CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN (Lanjutan)/ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)



17

3. IKHTISAR KEBIJAKAN AKUNTANSI 3.SUMMARY OF SIGNIFICANT ACCOUNTING YANG SIGNIFIKAN (Lanjutan) POLICIES (Continued)

c. Instrumen keuangan (Lanjutan) c. Financial instruments (Continued)

Pada saat pengakuan awal, liabilitas keuangan yang diukur pada biaya perolehan diamortisasi diukur pada nilai wajar, dikurangi biaya transaksi yang dapat diatribusikan secara langsung. Setelah pengukuran awal, liabilitas keuangan tersebut diukur pada biaya perolehan diamortisasi dengan menggunakan metode suku bunga efektif.

Financial liabilities measured at amortized cost are initially measured at fair value, less any directly attributable transaction costs. Subsequent to initial measurement, these financial liabilities are measured at amortized cost using the effective interest method.

Aset dan liabilitas keuangan dapat saling hapus dan nilai netonya disajikan dalam laporan posisi keuangan jikalau memiliki hak yang berkekuatan hukum untuk melakukan saling hapus atas jumlah yang telah diakui dan ada maksud untuk menyelesaikannya secara neto, atau pada saat aset tersebut direalisasi dan liabilitas tersebut diselesaikan secara simultan.

Financial assets and liabilities are offset and the net amount is presented in the statement of financial position when there is a legal right of offset and there is an intention to settle on a net basis, or when the asset is realized and the liability settled simultaneously.

d. Penilaian persediaan d. Inventory valuation

Persediaan diukur menurut harga yang lebih rendah antara harga perolehan dan nilai bersih yang dapat direalisasi; biaya persediaan ditentukan dengan metode rata-rata, dan mencakup pengeluaran yang terjadi untuk memperoleh persediaan, biaya produksi dan konversi dan biaya lainnya yang terjadi sampai persediaan berada di lokasi dan kondisi saat ini. Dalam hal persediaan yang diproduksi dan persediaan dalam pengolahan, biaya persediaan termasuk overhead produksi yang dialokasikan berdasarkan kapasitas produksi normal.

Inventories are measured at the lower of cost and net realizable value; cost is determined using the average method, and includes expenditures incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition. In the case of manufactured inventories and work in process, cost includes an appropriate share of production overheads based on normal operating capacity.

Nilai realisasi neto adalah estimasi harga jual dalam kegiatan usaha biasa dikurangi estimasi biaya penyelesaian dan estimasi biaya yang diperlukan untuk membuat penjualan.

Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

e. Aset tetap e. Fixed assets

Pada tahun 2011, Grup melakukan kuasi reorganisasi dengan tujuan menghapuskan akumulasi defisit per tanggal 30 Juni 2011. Kuasi-reorganisasi dilakukan dengan menerapkan metode akuntansi reorganisasi dimana aset dan liabilitas dinilai kembali sebesar harga wajarnya.

Setelah kuasi reorganisasi, hasil penilaian kembali aset tetap pada tanggal kuasi reorganisasi dianggap sebagai biaya perolehan yang baru. Grup tetap melanjutkan menggunakan model harga perolehan untuk akuntansi aset tetapnya.

In 2011, the Group conducted quasi reorganization for the purpose to eliminate accumulated deficit as of 30 June 2011. The quasi-reorganization is conducted using the accounting reorganization method, where all assets and liabilities are revalued at their fair value. After quasi-reorganization, the revaluated amounts of fixed assets at quasi-reorganization date are deemed as new costs. The Group continues to use cost model for accounting of its fixed assets





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e. Aset tetap (Lanjutan) e. Fixed assets (Continued)

Tanah yang diperoleh dengan status Hak Guna Bangunan (“HGB”) diukur sebesar harga perolehan (termasuk biaya legal dan administrasi untuk memperoleh tanah) dan tidak diamortisasi.

Land acquired under Hak Guna Bangunan (“HGB”) title is measured at acquisition cost (include legal and administration costs incurred in transactions to acquire the land) and is not amortized.

Aset tetap lainnya diukur dengan model harga perolehan, dimana pada pengakuan awalnya diukur sebesar harga perolehan dan selanjutnya dikurangi akumulasi penyusutan dan akumulasi kerugian penurunan nilai.

Other fixed assets are measured using the cost model, i.e. initially measured at cost and subsequently carried net of accumulated depreciation and accumulated impairment losses.

Penyusutan aset tetap diterapkan dengan metode garis lurus, berdasarkan taksiran masa manfaatnya, sebagai berikut:

Depreciation is applied using the straight-line method over the estimated useful lives of the assets, as follows:

Tahun/ Years

Aset tetap per tanggal kuasi reorganisasi/Fixed assets as at

quasi reorganization date

Aset tetap yang diperoleh setelah tanggal kuasi reorganisasi/Fixed

assets acquired after quasi reorganization date

Bangunan dan prasarana

16 - 30

5 – 30

Buildings and improvement

Mesin dan peralatan 2 – 15 2 – 15 Machinery and equipment Kendaraan 5 5 Vehicles Peralatan kantor 5 5 Office equipment

Metode penyusutan dan masa manfaat aset ditelaah dan jika perlu disesuaikan, pada setiap tanggal pelaporan.

Depreciation method and useful lives of the assets are reviewed at each reporting date and adjusted if appropriate.

Biaya pemeliharaan dan perbaikan diakui dalam laba rugi saat terjadinya, sedangkan biaya yang selanjutnya timbul untuk menambah atau mengganti aset tetap dikapitalisasi jika biaya tersebut memenuhi kriteria untuk diakui sebagai bagian dari aset.

Repair and maintenance costs are recognized in profit or loss as incurred, while costs incurred subsequently to add to or replace part of the fixed assets are capitalized when that cost is incurred if the recognition criteria are met.

Aset dalam penyelesaian dinyatakan sebesar biaya perolehan. Akumulasi biaya tersebut akan direklasifikasi ke dalam akun aset tetap yang bersangkutan pada saat pembangunan selesai dan aset tersebut siap untuk digunakan sesuai dengan tujuannya.

Assets under construction are stated at cost. The accumulated cost is reclassified to the related fixed assets account when the construction is completed and that asset is ready for its intended use.

f. Aset tak berwujud f. Intangible assets

Aset tak berwujud yang dibeli, yang berupa lisensi perangkat lunak komputer, memiliki masa manfaat terbatas, dan pada pengakuan awal diukur sebesar harga perolehan dan selanjutnya dikurangi akumulasi amortisasi dan akumulasi kerugian penurunan nilai. Amortisasi diakui dalam laba rugi menggunakan metode garis lurus selama taksiran masa manfaat dari aset tak berwujud, sejak aset yang bersangkutan siap untuk digunakan. Estimasi masa manfaat dari lisensi perangkat lunak komputer Grup adalah 10 tahun.

Purchased intangible assets, which comprise computer software licenses, have finite useful lives, and are initially measured at cost and subsequently net of accumulated amortization and accumulated impairment losses. Amortization is recognized in profit or loss on a straight-line basis over the estimated useful lives of intangible assets, from the date they are available for use. The estimated useful life of the Group’s computer software license is 10 years.





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g. Properti investasi g. Investment property

Properti investasi adalah properti untuk kenaikan nilai, dan tidak untuk dijual dalam kegiatan usaha sehari-hari, tidak untuk digunakan dalam produksi atau penyediaan barang atau jasa, atau untuk tujuan administratif.

Investment property is property held for capital appreciation, but not for sale in the ordinary course of business, not for use in the production or supply of goods or services, or for administrative purposes.

Properti investasi diukur berdasarkan model biaya, dimana pada awalnya semua pengeluaran yang dapat diatribusikan secara langsung dikapitalisasi ke perolehan properti, dan dibawa ke periode berikutnya. Tanah yang dimiliki sebagai investasi properti tidak diamortisasi.

Investment property is accounted for using the cost model, whereby on initial recognition, all expenditure that is directly attributable to the acquisition of the property is capitalized and is carried as such in subsequent periods. Land held as investment property is not amortized.

h. Penurunan nilai aset nonkeuangan h. Impairment of non-financial assets

Nilai tercatat aset nonkeuangan Grup ditelaah pada setiap tanggal pelaporan untuk menentukan apakah terdapat indikasi penurunan nilai. Jika terdapat indikasi tersebut maka nilai terpulihkan dari aset tersebut diestimasi.

The carrying amounts of the Group non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists then the asset’s recoverable amount is estimated.

Rugi penurunan nilai diakui jika nilai tercatat suatu unit penghasil kas melebihi jumlah terpulihkannya. Unit penghasil kas adalah kelompok aset terkecil yang dapat diidentifikasi yang menghasilkan arus kas yang sebagian besar independen dari aset lain. Rugi penurunan nilai diakui dalam laba rugi.

An impairment loss is recognized if the carrying amount of a cash-generating unit exceeds its recoverable amount. A cash-generating unit is the smallest identifiable asset group that generates cash flows that largely are independent from other assets. Impairment losses are recognized in profit or loss.

Nilai terpulihkan suatu unit penghasil kas adalah nilai yang lebih tinggi antara nilai pakai dan nilai wajar dikurangi biaya pelepasan. Dalam menentukan nilai pakai, estimasi arus kas masa depan didiskontokan ke nilai kini dengan menggunakan tingkat diskonto sebelum pajak yang mencerminkan penilaian pasar kini atas nilai waktu dari uang dan risiko yang terkait dengan aset yang bersangkutan.

The recoverable amount of a cash-generating unit is the greater of its value in use and its fair value less costs of disposal. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

Rugi penurunan nilai yang telah diakui di periode sebelumnya dievaluasi pada setiap tanggal pelaporan untuk mengetahui apakah terdapat indikasi bahwa rugi penurunan nilai tersebut telah berkurang atau tidak ada lagi. Rugi penurunan nilai dipulihkan jika terdapat perubahan estimasi yang digunakan untuk menentukan nilai terpulihkan. Rugi penurunan nilai dipulihkan sebatas nilai aset tercatat yang tidak melebihi nilai tercatat yang seharusnya diakui, setelah dikurangi depresiasi atau amortisasi, yang mungkin terjadi seandainya rugi penurunan nilai tidak pernah diakui.

Impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.





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i. Imbalan pascakerja

i. Post-employment benefits

Kewajiban atas imbalan pascakerja dihitung sebesar nilai kini dari estimasi imbalan yang akan diperoleh karyawan di masa yang akan datang sehubungan dengan jasa di masa sekarang dan masa lalu. Perhitungan dilakukan oleh aktuaris berkualifikasi, dengan menggunakan metode projected unit credit.

The obligation for post-employment benefits is calculated at the present value of estimated future benefits that the employees have earned in return for their services in the current and prior periods. The calculation is performed by a qualified actuary, using the projected unit credit method.

Laba atau rugi yang timbul dari pengukuran kembali atas liabilitas imbalan pasti neto diakui segera dalam penghasilan komprehensif lain. Pada saat imbalan atas program berubah atau ketika terjadi kurtailmen, perubahan yang dihasilkan dalam imbalan yang berhubungan dengan jasa lalu atau keuntungan atau kerugian atas kurtailmen segera diakui dalam laba rugi

Gains or losses arising from actuarial remeasurements of the net defined benefit liability are recognized immediately in other comprehensive income. When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognized immediately in profit or loss.

j. Pengakuan pendapatan j. Revenue recognition

Pendapatan diukur dengan nilai wajar imbalan yang diterima atau dapat diterima, setelah dikurangi retur penjualan dan diskon dagang. Pendapatan diakui jika risiko dan manfaat kepemilikan produk secara signifikan telah berpindah kepada pembeli, kemungkinan besar akan terdapat pemulihan imbalan, biaya terkait dan retur barang dapat diestimasi secara andal, Grup tidak lagi melanjutkan pengelolaan atas produk tersebut dan jumlah pendapatan dapat diukur secara andal.

Revenue is measured at the fair value of the consideration received or receivable, net of returns and trade discounts. Revenue is recognized when the significant risks and rewards of ownership have been transferred to the customer, recovery of the consideration is probable, the associated costs and possible return of products can be estimated reliably, there is no continuing management involvement with the products and the amount of revenue can be measured reliably.

Waktu terjadinya perpindahan risiko dan manfaat bervariasi bergantung pada setiap ketentuan-ketentuan dalam kontrak penjualan. Untuk penjualan domestik, perpindahan umumnya terjadi pada saat produk diterima di gudang pelanggan; sedangkan untuk penjualan ekspor, perpindahan terjadi pada saat produk dimuat ke dalam kapal.

The timing of the transfers of risks and rewards varies depending on the individual terms of the contract of sale. For domestic sales, the transfers usually occurs when the products is received at the customer’s warehouse; while for export sales, the transfers occurs upon loading the products onto the carrier.

k. Transaksi mata uang asing k. Foreign currency transaction

Transaksi dalam mata uang asing dijabarkan dalam mata uang fungsional Grup (Rupiah) dengan kurs pada tanggal transaksi. Aset dan liabilitas moneter dalam mata uang asing dijabarkan dalam mata uang fungsional dengan kurs pada tanggal pelaporan. Laba atau rugi kurs atas aset dan liabilitas moneter merupakan selisih antara biaya perolehan diamortisasi yang diukur dalam mata uang fungsional pada awal periode yang disesuaikan dengan suku bunga efektif dan pembayaran selama periode berjalan, dan biaya perolehan diamortisasi yang diukur dalam mata uang asing yang dijabarkan dengan menggunakan kurs pada tanggal pelaporan.

Transactions in foreign currencies are translated into the Group’s functional currency (Rupiah) at the rates of exchange prevailing at transaction date. Monetary assets and liabilities denominated in foreign currencies are retranslated to the functional currency at the exchange rate at the reporting date. Foreign currency gain or loss on monetary items are comprised of the difference between amortized cost measured in the functional currency at the beginning of the period as adjusted for effective interest and payments during the period, and the amortized cost measured in foreign currency translated at the exchange rate at reporting date.





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k. Transaksi mata uang asing (lanjutan) k. Foreign currency transaction (continued)

Aset dan liabilitas non-moneter dalam mata uang asing yang diukur berdasarkan biaya perolehan dijabarkan dengan menggunakan kurs pada tanggal transaksi.

Non-monetary assets and liabilities denominated in a foreign currency that are measured at historical cost are translated using the exchange rate at the date of the transaction.

Laba dan rugi kurs atas retranslasi dari aset dan liabilitas moneter yang timbul dari aktivitas operasi umumnya diakui dalam laba rugi.

Foreign currency gains and losses on retranslation of monetary assets and liabilities that arise from operating activities are generally recognized in profit or loss.

l. Pajak penghasilan l. Income tax

Beban pajak penghasilan terdiri dari pajak kini dan pajak tangguhan penghasilan badan. Pajak kini dan pajak tangguhan diakui dalam laba rugi kecuali jika pajak tersebut terkait dengan transaksi atau kejadian yang diakui secara langsung dalam ekuitas atau dalam penghasilan komprehensif lain.

Income tax expense comprises current and deferred corporate income tax. Current tax and deferred tax are recognized in profit or loss except to the extent that they relate to items recognized directly in equity or in other comprehensive income.

Pajak kini adalah pajak terutang atau piutang pajak yang diharapkan atas laba kena pajak (rugi pajak) selama tahun berjalan, dengan menggunakan tarif pajak yang secara substantif berlaku pada tanggal pelaporan, dan termasuk penyesuaian atas provisi beban pajak tahun-tahun sebelumnya baik untuk direkonsiliasikan dengan pajak penghasilan yang dilaporkan pada pelaporan pajak tahunan, atau untuk memperhitungkan selisih yang timbul dari pemeriksaan pajak. Utang pajak kini atau piutang pajak diukur sebesar jumlah yang diharapkan akan dibayar atau direstitusi, dengan mempertimbangkan ketidakpastian yang berhubungan dengan kompleksitas dari peraturan pajak.

Current tax is the expected tax payable or refundable on taxable income or loss for the year, using tax rates substantively enacted as of the reporting date, and includes true-up adjustments made to the previous years’ tax provisions either to reconcile them with the income tax reported in annual tax returns, or to account for differences arising from tax assessments. Current tax payable or refundable is measured using the best estimate of the amount expected to be paid or received, taking into consideration the uncertainty associated with the complexity of tax regulations.

Pajak tangguhan diakui sehubungan dengan perbedaan-perbedaan temporer antara nilai tercatat aset dan liabilitas untuk tujuan pelaporan keuangan dan nilai yang digunakan untuk tujuan perpajakan. Pajak tangguhan diukur dengan menggunakan tarif pajak yang diharapkan akan berlaku atas perbedaan-perbedaan temporer pada saat aset dipulihkan atau liabilitas diselesaikan, berdasarkan peraturan yang telah berlaku atau secara substantif berlaku sampai dengan tanggal pelaporan. Metode ini juga mengharuskan pengakuan manfaat pajak masa mendatang, seperti rugi pajak belum dikompensasi, sepanjang kemungkinan realisasi manfaat tersebut di masa mendatang cukup besar.

Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted as of the reporting date. This method also requires the recognition of future tax benefits, such as tax loss carry forwards, to the extent that realization of such benefits is probable.

Aset pajak tangguhan ditinjau setiap tanggal pelaporan dan diturunkan nilainya apabila besar kemungkinan bahwa manfaat pajak terkait tidak dapat direalisasikan; penurunan tersebut dipulihkan saat kemungkinan laba kena pajak di masa depan meningkat.

Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be reliazed; such reductions are reserved when the probability of the future taxable profit improves.

Aset pajak tangguhan yang tidak diakui dinilai ulang pada setiap tanggal pelaporan dan diakui sebagai aset apabila besar kemungkinan laba kena pajak di masa mendatang akan tersedia untuk dikompensasi sebesar yang dapat digunakan.

Unrecognized deferred tax assets are reassessed at each reporting date and recognized to the extent that it has become probable that future taxable profits will be available against which they can be used.





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m. Pendapatan keuangan m. Finance income

Pendapatan keuangan terdiri dari pendapatan bunga atas dana yang diinvestasikan.

Finance income comprises interest income on funds invested.

n. Informasi segmen operasi n. Operating segment information

Informasi segmen operasi disajikan secara konsisten menurut informasi internal yang digunakan oleh pengambil keputusan operasional dalam mengalokasikan sumber daya dan menilai kinerja segmen operasi Grup.

Operating segment information is reported consistently based on the internal reporting used by the chief operating decision maker in allocating resources and assessing performance of Group’s operating segments.

Segmen operasi adalah komponen dari entitas yang terlibat dalam aktivitas bisnis darimana komponen itu memperoleh pendapatan dan menimbulkan beban, termasuk pendapatan dan beban terkait dengan transaksi dengan komponen lain dari entitas yang sama, yang mana hasil operasinya ditelaah secara berkala oleh pengambil keputusan operasional untuk membuat keputusan tentang sumber daya yang dialokasikan pada segmen tersebut dan menilai kinerjanya; dan dimana tersedia informasi keuangan yang tersendiri.

An operating segment is a component of an entity that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses relating to transactions with other components of the same entity, whose operating results are regularly reviewed by the chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available.

o. Laba (rugi) per saham o. Earnings (loss) per share

Laba (rugi) per saham dihitung dengan membagi laba (rugi) periode berjalan dengan jumlah rata-rata tertimbang saham beredar/ditempatkan dalam tahun yang bersangkutan.

Earnings (loss) per share are computed by dividing profit (loss) by the weighted average number of total outstanding/issued shares during the year.

4. KAS DAN SETARA KAS 4. CASH AND CASH EQUIVALENTS

2017 2016 Kas Cash on hand

Rupiah 42.000.000 60.000.000 Rupiah Dolar Amerika Serikat 10.679.513 150.683.156 U.S. Dollar

Total kas 52.679.513 210.683.156 Total cash on hand Bank pihak ketiga:

Cash in third parties banks:

Rupiah Rupiah PT Bank CIMB Niaga Tbk 2.723.307.998 719.355.839 PT Bank CIMB Niaga Tbk Bangkok Bank Public Company Bangkok Bank Public Company

Limited - cabang Jakarta 179.663.875 5.432.875.750 Limited – Jakarta branch PT Bank Central Asia Tbk 522.615.244 366.874.383 PT Bank Central Asia Tbk PT Bank UOB Indonesia 172.487.598 184.230.643 PT Bank UOB Indonesia PT Bank HSBC Indonesia 158.461.254 20.895.955 PT Bank HSBC Indonesia PT Bank Mandiri 70.967.816 6.164.604 PT Bank Mandiri

3.827.503.785 6.730.397.174





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4. KAS DAN SETARA KAS (Lanjutan) 4. CASH AND CASH EQUIVALENTS (Continued)

2017 2016 Mata uang asing: Foreign currencies:

Dolar Amerika Serikat U.S. Dollar PT Bank CIMB Niaga Tbk 4.579.250.216) 957.733.129 PT Bank CIMB Niaga Tbk PT Bank Pan Indonesia Tbk 419.423.020) 949.169.425 PT Bank Pan Indonesia Tbk PT Bank UOB Indonesia 43.584.048) 44.154.994 PT Bank UOB Indonesia PT Bank HSBC Indonesia 4.303.117) 5.443.058 PT Bank HSBC Indonesia Deutsche Bank AG, cabang Jakarta -) 14.911.681 Deutsche Bank AG, Jakarta branch

5.046.560.401) 1.971.412.287 Euro Euro

PT Bank UOB Indonesia 46.120.182) 34.431.825 PT Bank UOB Indonesia PT Bank HSBC Indonesia 15.339.862) 13.705.832 PT Bank HSBC Indonesia

61.460.044) 48.137.657 Thailand Baht Thai Baht

Bangkok Bank Public Company Limited – Cabang Jakarta 395.966.131) -

Bangkok Bank Public Company Limited – Jakarta Branch

9.331.490.361)

8.749.947.118

Total kas di bank Total cash in banks Deposito jangka pendek:

Short-term time deposits:

Rupiah Rupiah Bangkok Bank Public Company Bangkok Bank Public Company

Limited - cabang Jakarta -) 25.000.000.000 Limited – Jakarta branch )

Kas dan setara kas 9.384.169.874) 33.960.630.274 Cash and cash equivalents

Tingkat suku bunga per tahun Annual interest rates on the short-term Deposito Rupiah jangka pendek 7,00% - 7,25%) 7,25% - 9,5% Time deposits Rupiah

5. PIUTANG USAHA 5. TRADE RECEIVABLES

2017 2016

Piutang usaha yang timbul dari aktivitas yang menghasilkan pendapatan adalah dari:

Trade receivables resulting from revenue generating activities are from:

Pihak ketiga 5.326.096.446) 5.439.214.130 Third parties Pihak berelasi 396.614.531.803) 366.021.646.441 Related parties 401.940.628.249) 371.460.860.571

Dikurangi: provisi atas penurunan nilai (2.751.473.989) - Less: provision for impairment 399.189.154.260) 371.460.860.571





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5. PIUTANG USAHA (Lanjutan) 5. TRADE RECEIVABLES (Continued)

2017 2016 Piutang usaha dalam mata uang adalah sebagai

berikut:

Trade receivables in currencies are as

follows: Rupiah 398.862.959.725) 371.383.537.824) Rupiah Dolar Amerika Serikat 2.533.625.062) 77.322.747) US Dollar Thailand Baht 544.043.462) -) Thai Baht

401.940.628.249) 371.460.860.571)

Jumlah piutang usaha menurut umur pada tanggal pelaporan adalah sebagai berikut:

The aging of trade receivables at the reporting dates, is as follows:

Belum jatuh tempo 147.100.503.689) 200.318.860.571) Not yet due Lewat 1 - 30 hari 65.539.332.571) 74.967.000.000) Overdue 1 - 30 days Lewat 31 - 60 hari 41.265.811.267) 68.707.000.000) Overdue 31 - 60 days Lewat 61 – 90 hari 36.163.187.428) 7.426.000.000) Overdue 61 - 90 days Lewat dari 90 hari 111.871.793.294) 20.042.000.000) More than 90 days

401.940.628.249) 371.460.860.571)

Perubahan provisi atas penurunan nilai adalah sebagai berikut: Movements in the provision for impairment are as

follows: 2017 2016

Saldo awal -) -) Beginning balance Penambahan provisi atas penurunan nilai (2.751.473.989) -) Addition of provision for impairment Penghapusbukuan piutang usaha -) -) Doubtful debts written off Saldo akhir (2.751.473.989) -) Ending balance

Berdasarkan penelaahan dari status masing-masing piutang usaha pada akhir tahun, manajemen berkeyakinan bahwa provisi atas penurunan nilai telah memadai untuk menutupi kerugian yang mungkin timbul dari piutang yang tidak tertagih.

Based on review of the status of each trade debtor at the end of the year, management believes that the provision for impairment is adequate to cover losses that may arise from the non-collectible accounts.

6. PERSEDIAAN 6. INVENTORIES

2017 2016

Barang jadi 11.772.767.846) 11.772.337.391 Finished goods Barang dalam pengolahan 9.104.472.389) 8.855.850.140) Work in process Bahan baku 49.382.690.330) 48.338.068.389) Raw materials Suku cadang dan bahan pembantu 51.201.829.907) 54.288.825.727) Spare parts and supplies 121.461.760.472) 123.255.081.647)

Dikurangi penyisihan penurunan nilai persediaan

(17.733.867.432)

(18.600.367.482)

Less provision for decline in inventory value

103.727.893.040) 104.654.714.165)

Mutasi penyisihan penurunan nilai persediaan adalah sebagai berikut:

Movement of the provision for decline in value of inventories is as follows:

2017 2016

Saldo awal 18.600.367.482) 10.265.000.000) Beginning balance Penambahan 29.085.576.110) 15.855.000.000) Addition Realisasi selama tahun berjalan (29.952.076.160) (7.519.632.518) Realization during the year Saldo akhir 17.733.867.432) 18.600.367.482) Ending balance





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6. PERSEDIAAN (Lanjutan) 6. INVENTORIES (Continued)

Per 31 Desember 2017, persediaan diasuransikan dengan nilai pertanggungan sebesar Rp 114.222.576.178. Manajemen berpendapat bahwa nilai pertanggungan ini dapat menutupi kemungkinan risiko kerugian yang dapat timbul akibat kebakaran dan risiko lainnya.

As of 31 December 2017, the inventories were insured for Rp 114.222.576.178. Management assesses that the sum insured can cover the risk of potential loss due to fire and other risks.

7. ASET TETAP 7. FIXED ASSETS

2017 Saldo awal/

Beginning balance Penambahan/

Additions Pengurangan/ Deductions

Reklasifikasi/ Reclassifications

Saldo akhir/ Ending balance

Biaya perolehan Cost

Tanah 495.911.544.113) -) -) -) 495.911.544.113) Land Bangunan dan

prasarana 504.726.948.402)

2.143.382.537)

-)

4.825.895.245)

511.696.226.184) Buildings and

Improvement Mesin dan

peralatan 1.304.625.750.048)

6.127.873.770)

(7.705.850.543)

19.675.925.516)

1.322.723.698.791) Machinery and Equipment

Kendaraan 10.775.634.832) -) (1.783.982.218) -) 8.991.652.614) Vehicles Peralatan kantor 23.872.551.493) 11.454.931) -) 220.393.569) 24.104.399.993) Office equipment Aset yang tidak

digunakan dalam operasi 56.069.022.156) -) -) -) 56.069.022.156)

Assets not used in

Operation 2.395.981.451.044) 8.282.711.238) (9.489.832.761) 24.722.214.330) 2.419.496.543.851) Aset dalam

penyelesaian 24.949.261.350) 2.424.796.600) -) (24.722.214.330) 2.651.843.620) Assets under

Construction 2.420.930.712.394) 10.707.507.838) (9.489.832.761) -) 2.422.148.387.471)

Akumulasi penyusutan

Accumulated depreciation

Bangunan dan prasarana (197.270.047.241) (22.166.292.930) -) - (219.436.340.171)

Buildings and Improvement

Mesin dan peralatan (814.638.190.067) (83.056.159.354) 7.588.758.150) - (890.105.591.271)

Machinery and Equipment

Kendaraan (10.699.083.286) (33.938.029) 1.757.579.958) - (8.975.441.357) Vehicles Peralatan kantor (20.709.125.185) (1.161.793.726) -) - (21.870.918.911) Office equipment

(1.043.316.445.779) (106.418.184.039) 9.346.338.108) - (1.140.388.291.710)

Penurunan nilai aset Asset impairment Mesin dan

peralatan (56.069.022.156) - - - (56.069.022.156) Machinery and Equipment

Nilai tercatat 1.321.545.244.459) 1.225.691.073.605) Carrying amount

2016 Saldo awal/


Additions Pengurangan/ Deductions

Reklasifikasi/ Reclassifications

Saldo akhir/ Ending balance

Biaya perolehan Cost Tanah 495.911.544.113) -) -) -) 495.911.544.113) Land Bangunan dan

prasarana 498.606.308.533)

224.681.485)

(92.340.000)

5.988.298.384)

504.726.948.402) Buildings and

improvement Mesin dan

peralatan 1.239.870.791.505)

15.596.654.098)

(10.673.135.091)

59.831.439.536)

1.304.625.750.048) Machinery and equipment

Kendaraan 14.315.798.302) -) (3.540.163.470) -) 10.775.634.832) Vehicles Peralatan kantor 22.629.476.943) 404.344.800) -) 838.729.750) 23.872.551.493) Office equipment Aset yang tidak

digunakan dalam operasi 56.069.022.156) -) -) -) 56.069.022.156)

Assets not used in

operation 2.327.402.941.552) 16.225.680.383) (14.305.638.561) 66.658.467.670) 2.395.981.451.044) Aset dalam

penyelesaian 66.780.994.075) 24.826.734.945) -) (66.658.467.670) 24.949.261.350) Assets under

construction 2.394.183.935.627) 41.052.415.328) (14.305.638.561) -) 2.420.930.712.394)





26

7. ASET TETAP (Lanjutan) 7. FIXED ASSETS (Continued)

2016 Saldo awal/


Additions Pengurangan/

Deductions Reklasifikasi

Reclassifications Saldo akhir/

Ending balance

Akumulasi penyusutan

Accumulated depreciation

Bangunan dan prasarana (175.341.310.896) (21.946.828.568) 18.092.223) -) (197.270.047.241)

Buildings and improvement

Mesin dan peralatan (735.506.899.927) (82.054.439.088) 2.923.148.948) -) (814.638.190.067)

Machinery and equipment

Kendaraan (13.300.950.835) (818.303.498) 3.420.171.047) -) (10.699.083.286) Vehicles

Peralatan kantor (19.222.814.035) (1.486.311.150) -) -) (20.709.125.185) Office

equipment (943.371.975.693) (106.305.882.304) 6.361.412.218) -) (1.043.316.445.779)

Penurunan nilai

aset

Asset impairment Mesin dan

peralatan (56.069.022.156) - -) -) (56.069.022.156) Machinery and

equipment

Nilai tercatat 1.394.742.937.778) 1.321.545.244.459) Carrying amount

Aset dalam penyelesaian per 31 Desember 2017 dan 2016 adalah sebagai berikut:

Assets under construction as of 31 December 2017 and 2016 are as follows:

2017 2016

Bangunan dan prasarana 26.000.000) 2.144.142.015 Buildings and improvement Mesin dan peralatan 2.625.843.620) 22.769.446.835 Machinery and equipment Peralatan kantor -) 35.672.500 Office equipment 2.651.843.620) 24.949.261.350

Aset dalam penyelesaian per 31 Desember 2017 diperkirakan akan selesai dan direklasifikasi ke masing-masing kelompok aset pada tahun 2018, dengan persentase penyelesaian hingga saat ini adalah 74.76%.

Assets under construction as of 31 December 2017 is estimated to and reclassified into each group of assets in 2018, with current percentage of completion of 74.76%.

Penyusutan dibebankan pada: Depreciation expense was charged to:

2017 2016

Beban pokok pendapatan (Catatan 17) 106.334.480.827) 106.130.045.304 Cost of revenue (Note 17) Beban administrasi (Catatan 19) 83.703.212) 175.837.000 Administrative expenses (Note 19) 106.418.184.039) 106.305.882.304

Pengurangan selama tahun 2017 dan 2016 merupakan penjualan aset tetap dengan perincian sebagai berikut:

Deduction in 2017 and 2016 portion to the sale of certain fixed assets with details as follows:

2017 2016

Harga penjualan bersih 2.808.000.001) 581.363.637) Net proceeds Nilai tercatat 143.494.653) 7.944.226.343) Carrying amount Laba (rugi) penjualan aset tetap 2.664.505.348) (7.362.862.706) Gain (loss) on sale of fixed assets





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7. ASET TETAP (Lanjutan) 7. FIXED ASSETS (Continued)

Per 31 Desember 2017 dan 2016, aset yang tidak digunakan dalam operasi pada nilai tercatatnya adalah sebagai berikut:

As of 31 December 2017 and 2016, the assets not used in operations at their carrying amounts are as follows:

2017 2016

Mesin dan peralatan di pabrik Karawang

56.069.022.156)

56.069.022.156)

Machinery and equipment in Karawang’s factory

Penurunan nilai aset (56.069.022.156) (56.069.022.156) Asset impairment -) -)

Aset yang tidak digunakan dalam operasi merupakan biaya pembangunan aset tetap produk Granito di Karawang. Pada tahun 1998, manajemen memutuskan untuk tidak melanjutkan pembangunan tersebut dan mesin-mesin yang tidak digunakan tersebut sudah diturunkan nilainya karena tidak ada lagi nilai ekonomi yang didapat dari mesin-mesin tersebut.

Assets not used in operations represents constructing costs of fixed assets to produce Granito products in Karawang. In 1998, management decided to discontinue the construction and those unused machineries have been fully impaired due to there is no economic value obtained from those machineries.

Pada tanggal 31 Desember 2017, manajemen telah mengkaji ulang taksiran masa manfaat aset tetap dan hasilnya telah sesuai. Masa manfaat dihitung berdasarkan periode estimasi dimana Grup akan menerima manfaat ekonomi di masa depan dengan mempertimbangkan perubahan keadaan atau peristiwa yang tidak terduga.

As of 31 December 2017, management has reviewed the estimated useful life of fixed assets and has found them to be appropriate. The useful life are based on the estimated period over which future economic benefits will be received by the Group, taking into account any unexpected adverse changes in circumstances or events.

Pada tanggal 31 Desember 2017, sebagian besar aset tetap diasuransikan dengan nilai pertanggungan sebesar Rp 976.875.851.950. Manajemen berpendapat bahwa nilai pertanggungan ini dapat menutupi kerugian yang dapat timbul akibat kebakaran, bencana alam, huru hara dan lain-lain.

As of 31 December 2017, majority of fixed assets were insured for Rp 976,875,851,950. Management assesses that the sum insured can cover the risk of potential loss due to fire, natural disaster, strike, riot and civil commotion, etc.

Grup memiliki beberapa bidang tanah yang terletak di Cileungsi, Karawang dan Gresik dengan hak kepemilikan berupa Hak Guna Bangunan (HGB) yang akan jatuh tempo antara tahun 2023 dan 2036. Manajemen berpendapat bahwa HGB tersebut akan dapat selanjutnya diperbaharui dengan biaya yang minimal.

The Group owns several parcels of land located in Cileungsi, Karawang and Gresik with renewable Building Use Rights (Hak Guna Bangunan or HGB) due between 2023 and 2036. Management anticipates that the usage right granted under this certificate will be perpetually renewable at minimal cost.

Pada tanggal 31 Desember 2017 dan 2016, utang atas pembelian aset tetap adalah masing-masing sebesar Rp 289.041.089 dan Rp 602.815.206.

As of 31 December 2017 and 2016, the amount of payables for purchases of fixed assets amounting to Rp 289,041,089 and Rp 602,815,206, respectively.

Pada tanggal 31 Desember 2017, nilai wajar untuk aset tetap (tanah, bangunan dan prasarana, mesin dan peralatan) yang dimiliki Perseroan dan entitas anak adalah sebesar Rp 2.508.734.400.000

As of 31 December 2017, the fair value of the Company’s and subsidiaries’ fixed assets (land, buildings and improvement, machinery and equipment) amounted to Rp 2,508,734,400,000

8. UTANG USAHA 8. TRADE PAYABLES

2017 2016

Utang usaha yang timbul atas pembelian bahan baku terdiri dari:

Trade payables arising from purchase, of raw material consists of:

Utang ke pihak ketiga 85.517.632.277 83.303.422.890 Trade payables to third parties Utang ke pihak berelasi 6.691.117.845 - Trade payables to related parties 92.208.750.122 83.303.422.890

Umur utang usaha adalah sebagai berikut: The aging of trade payables is as follows:

Belum jatuh tempo 62.444.504.938 72.786.813.314 Not yet due Jatuh tempo: Past due:

1 - 30 hari 16.599.383.831 1.529.019.797 1 - 30 days 31 - 60 hari 2.822.831.648 227.893.913 31 - 60 days





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Lebih dari 60 hari 10.342.029.705 8.759.695.866 More than 60 days 92.208.750.122 83.303.422.890





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8. UTANG USAHA (Lanjutan) 8. TRADE PAYABLES (Continued)

Utang usaha dalam mata uang asing adalah sebagai berikut:

Trade payables in currencies are as follows:

2017 2016

Rupiah 86.570.479.383 72.623.385.946 Rupiah Mata uang asing Foreign currencies:

Dolar Amerika Serikat 4.294.810.012 7.244.614.933 US Dollar Thailand Baht 710.522.004 753.544.692 Thai Baht Euro 558.315.500 2.154.095.614 Euro Yen Jepang 74.473.200 511.148.700 Japanese Yen Poundsterling 150.023 11.615.208 Poundsterling Dolar Singapura - 5.017.797 Singapore Dollar 92.208.750.122 83.303.422.890

9. UTANG LAIN-LAIN 9. OTHER PAYABLES

2017 2016

Pihak ketiga 2.040.436.822 6.120.935.350 Third parties Pihak berelasi 32.245.224.446 20.524.124.442 Related parties

34.285.661.268 26.645.059.792

Utang lain-lain dari pihak berelasi terdiri dari utang yang berasal dari jasa manajemen dan biaya penggantian (seperti air, listrik, bahan bakar dan lainnya).

Other payables from related parties represent payables from management fees and reimbursement expenses (i.e.

water, electricity, fuel, etc).

10. BEBAN AKRUAL 10. ACCRUED EXPENSES

2017 2016

Energi dan gas 14.186.081.061 14.305.943.229 Energy and gas Jasa pemeliharaan 5.283.660.455 4.345.964.442 Maintenance fees Utilitas 5.265.633.315 4.996.983.083 Utilities Jasa profesional dan konsultan 2.756.008.406 2.234.200.330 Professional and consultant Sewa peralatan 1.216.250.000 782.560.000 Equipment rental Pemasaran dan promosi 981.600.000 9.624.975.929 Marketing and promotion Jaminan sosial 855.379.440 794.745.923 Social security Lain-lain 7.164.483.132 5.978.449.530 Others

37.709.095.809 43.063.822.466





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11. PERPAJAKAN 11.TAXATION

a. Pajak dibayar dimuka merupakan: a. Prepaid taxes represent:

2017 2016 Kelebihan pembayaran pajak

penghasilan badan tahun 2017: Overpayments of corporate income tax fiscal

year 2017: - Perseroan 115.243.324 - - The Company - KSM 389.669.944 - - KSM - KKM 448.754.908 - - KKM

953.668.176 -

Kelebihan pembayaran pajak penghasilan badan tahun 2016:

Overpayments of corporate income tax fiscal year 2016:

- Perseroan 1.610.001.340 1.610.001.340 - The Company - KSM 850.460.635 850.460.635 - KSM - KKM - - - KKM

2.460.461.975 2.460.461.975

3.414.130.151 2.460.461.975 b. Utang pajak terdiri dari: b. Taxes payable consist of:

2017 2016 Pajak penghasilan: Income tax: Pasal 29 - 691.756.259 Article 29

Pajak lainnya: Other taxes: Pasal 21 1.291.487.364 2.238.632.176 Article 21 Pasal 4(2) 13.754.216 55.906.341 Article 4(2) Pasal 23 44.753.485 1.007.877.865 Article 23 Pasal 26 193.998.883 380.247.502 Article 26 Pajak pertambahan nilai - bersih 3.103.642.449 7.562.114.566 Value added tax – net 4.647.636.397 11.936.534.709

c. Komponen pajak penghasilan yang diakui dalam laba rugi adalah sebagai berikut:

c. The components of income tax recognized in profit or loss are as follows:

2017 2016

Pajak Kini Current tax expense Perseroan: The Company:

Tahun kini - - Current year Penyesuaian untuk tahun-tahun

sebelumnya -

12.164.720.910

Adjustment for prior years - 12.164.720.910

Entitas anak: Subsidiaries: Tahun kini 1.006.066.750) 2.816.868.250 Current year Penyesuaian untuk tahun-tahun

sebelumnya (671.676.926)

15.026.993.060

Adjustments to prior years

334.389.824) 17.843.861.310

334.389.824) 30.008.582.220

(Manfaat) beban pajak tangguhan Deferred tax (benefit) expense Perseroan (10.296.580.263) 31.270.831.650 The Company Entitas Anak 552.490.814) 25.292.175.957 Subsidiaries

(9.744.089.449) 56.563.007.607

(9.409.699.625) 86.571.589.827





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11. PERPAJAKAN (Lanjutan) 11.TAXATION (Continued)

d. Rekonsiliasi antara rugi konsolidasian sebelum pajak penghasilan dengan beban pajak penghasilan adalah sebagai berikut:

d. The reconciliation between consolidated loss before income tax and income tax expense is as follows:

2017 2016

Rugi konsolidasian sebelum pajak penghasilan (94.710.676.180) (165.927.480.293)

Consolidated loss before income tax

Rugi sebelum pajak penghasilan entitas anak (49.269.230.370) (79.463.396.326) Subsidiary’ loss before income tax

Rugi sebelum pajak penghasilan Perseroan (45.441.445.810) (86.464.083.967) The Company’s loss before income tax

Beban pajak penghasilan dihitung dengan tarif pajak yang berlaku (25%) (11.360.361.452) (21.616.020.992) Income tax expense at tax rate of 25%

Pengaruh pajak dari perbedaan permanen (3.047.218.595) 29.645.030.784)

Tax effect of permanent Differences

Rugi pajak yang tidak diakui tahun berjalan 4.110.999.784) 7.803.568.837)

Current year’s unrecognized tax loss

Rugi pajak yang tidak diakui di tahun-tahun sebelumnya -) 15.438.253.021)

Prior years’ unrecognized tax loss carry forward

Penyesuaian untuk tahun-tahun sebelumnya -) 12.164.720.910) Adjustments to prior years

(10.296.580.263) 43.435.552.560) (Manfaat) beban pajak penghasilan: Income tax (benefit) expense:

Perseroan (10.296.580.263) 43.435.552.560) The Company Entitas anak 886.880.638) 43.136.037.267) Subsidiaries

(Manfaat) beban pajak penghasilan (9.409.699.625) 86.571.589.827) Income tax (benefit) expense

e. Rekonsiliasi antara rugi sebelum pajak Perseroan dengan

rugi fiskal Perseroan adalah sebagai berikut: e. The reconciliation between loss before income tax of the

Company and the Company’s fiscal loss is as follows:

2017 2016 Rugi sebelum pajak penghasilan

Perseroan (45.441.445.810) (86.464.083.967) Loss before income tax of the Company Koreksi fiskal : Fiscal corrections :

Penyusutan aset tetap 25.441.975.516) 26.558.334.709) Depreciation of fixed assets Liabilitas imbalan kerja (1.495.484.000) (17.055.012) Provision for employee benefits Penyisihan penurunan nilai

persediaan (759.002.892) 4.433.358.027) Provision for decline in inventory value Pendapatan bunga yang dikenakan

pajak final (167.659.012) (298.713.426) Interest income already subjected to

final tax Denda pajak -) 6.340.583.064) Tax penalties Sumbangan 189.551.800) 240.834.937) Donations Lain-lain 5.788.065.264) 17.992.466.323) Others

28.997.446.676) 55.249.808.622) Rugi fiskal tahun berjalan (16.443.999.134) (31.214.275.345) Fiscal loss during the year

Rugi fiskal yang ditunjukkan dalam rekonsiliasi di atas menjadi dasar dalam pengisian SPT Tahunan PPh badan.

The fiscal loss shown in the above reconciliation becomes the basis in filing of the annual corporate income tax return.





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11. PERPAJAKAN (Lanjutan) 11. TAXATION (Continued) f. Rekonsiliasi antara beban pajak kini dengan (lebih

bayar) utang pajak penghasilan badan adalah sebagai berikut:

f. The reconciliation of current tax expense to corporate income (over-payment) tax payable is as follows:

2017 2016 Beban pajak kini Current tax expense

Perseroan -) -) The Company Entitas anak Subsidiaries

KSM -) -) KSM KKM 1.006.066.750) 2.816.868.250) KKM

Jumlah beban pajak kini 1.006.066.750) 2.816.868.250) Total current tax expense Dikurangi pembayaran pajak dimuka Less prepaid taxes

Perseroan (115.243.324) (1.610.001.340) The Company Entitas anak Subsidiaries

KSM (389.669.944) (850.460.635) KSM KKM (1.454.821.658) (2.125.111.991) KKM

Jumlah (1.959.734.926) (4.585.573.966) Subtotal (Pajak dibayar dimuka) utang pajak (Prepaid taxes) tax payables

Perseroan (115.243.324) (1.610.001.340) The Company Entitas anak Subsidiaries

KSM (389.669.944) (850.460.635) KSM KKM (448.754.908) 691.756.259) KKM

(953.668.176) (1.768.705.716)

g. Saldo pajak tangguhan yang diakui dan pergerakan selama tahun berjalan terdiri dari:

g. Recognized deferred tax balances, and the movement thereof during the year were comprised of the following:

2016

Diakui di laba rugi berjalan/ Recognized in profit or loss

Diakui di penghasilan

komprehensif lain/ Recognized

in other comprehensive

income 2017 Perseroan: The Company: Aset (liabilitas) pajak

tangguhan ) Deferred tax asset (liability)

Imbalan pasca kerja 9.148.506.000) (373.871.000) 773.855.500 9.548.490.500) Post-employment benefits Penyusutan aset tetap (27.783.076.835) 10.670.451.263) - (17.112.625.572) Depreciation of fixed assets

Liabilitas pajak tangguhan, bersih - Perseroan (18.634.570.835) 10.296.580.263) 773.855.500 (7.564.135.072)

Deferred tax liability, net - the Company

Entitas anak: Subsidiaries: Liabilitas pajak tangguhan,

bersih (36.421.311.288) (552.490.814) 1.892.410.750 (35.081.391.352) Deferred tax liability,

net Aset pajak tangguhan Deferred tax asset

Perseroan -) -) The Company Entitas anak -) -) Subsidiaries

Total aset pajak tangguhan -) -) Total deferred tax asset Liabilitas pajak tangguhan Deferred tax liability

Perseroan (18.634.570.835) (7.564.135.072) The Company Entitas anak (36.421.311.288) (35.081.391.352) Subsidiaries

Total liabilitas pajak tangguhan (55.055.882.123) (42.645.526.424) Total deferred tax liability





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11. PERPAJAKAN (Lanjutan) 11. TAXATION (Continued)

2015

Diakui di laba rugi berjalan/ Recognized in profit or loss

Diakui di penghasilan

komprehensif lain/ Recognized

in other comprehensive

income 2016 Perseroan: The Company: Aset pajak tangguhan ) Deferred tax assets

Imbalan pasca kerja 8.127.354.253) (4.263.753) 1.025.415.500 9.148.506.000) Post-employment benefits Penyisihan penurunan

nilai persediaan 725.325.266) (725.325.266) -) -) Provision for decline in

inventory value Rugi fiskal 15.437.852.632) (15.437.852.632) -) -) Tax loss carry forward Lain-lain 125.901.884) (125.901.884) -) -) Others

24.416.434.035) (16.293.343.535) 1.025.415.500 9.148.506.000) Liabilitas pajak tangguhan Deferred tax liability

Penyusutan aset tetap (12.805.588.720) (14.977.488.115) -) (27.783.076.835) Depreciation of fixed assets Aset (liabilitas) pajak

tangguhan, bersih - Perseroan 11.610.845.315) (31.270.831.650) 1.025.415.500 (18.634.570.835)

Deferred tax assets (liability), net - the Company

Entitas anak: Subsidiaries: Liabilitas pajak tangguhan,

bersih (13.156.480.581) (25.292.175.957) 2.027.345.250 (36.421.311.288) Deferred tax liability,

net Aset pajak tangguhan Deferred tax assets

Perseroan 11.610.848.315) -) The Company Entitas anak -) -) Subsidiaries

Total aset pajak tangguhan 11.610.845.315) -) Total deferred tax assets Liabilitas pajak tangguhan Deferred tax liability

Perseroan -) (18.634.570.835) The Company Entitas anak (13.156.480.581) (36.421.311.288) Subsidiaries

Total liabilitas pajak tangguhan (13.156.480.581) (55.055.882.123) Total deferred tax liability

Aset pajak tangguhan yang tidak diakui: The following deferred tax assets have not been

recognized:

2017 2016 Perseroan: The Company:

Rugi fiskal 11.914.568.620 7.803.568.837 Fiscal loss

Penyisihan penurunan nilai persediaan 1.638.588.985 1.833.664.773 Provision for decline in inventory

Value 13.553.157.605 9.637.233.610 Entitas anak: Subsidiaries:

Rugi fiskal 8.932.653.843 6.232.792.500 Fiscal loss

Penyisihan penurunan nilai persediaan 2.794.877.873

2.816.427.098 Provision for decline in inventory

value Penyisihan penurunan nilai aset tetap 14.009.458.312 14.009.458.312 Impairment provision for fixed assets Penyisihan penurunan nilai piutang

usaha 687.868.497 - Provision for impairment of trade

receivable 26.424.858.525 23.058.677.910

39.978.016.130 32.695.911.520





33


Beda waktu yang memberikan peningkatan pada aset pajak tangguhan dari penyisihan penurunan nilai piutang usaha, penyisihan penurunan nilai persediaan dan penyisihan penurunan nilai aset tetap tidak ada masa berakhirnya, tetapi sebelum penyisihan tersebut dapat diakui sebagai pengurang pajak, Grup harus memberikan bukti bahwa piutang usaha tidak dapat tertagih, penurunan persediaan/aset tetap tersebut sudah terealisasi dengan di jual atau dihapuskannya persediaan/aset tetap tersebut. Akumulasi rugi fiskal pada tanggal 31 Desember 2017 sebesar Rp 83.388.889.852, akan berakhir di tahun 2021 dan 2022 jika tidak digunakan untuk dikompensasi dengan laba fiskal di masa mendatang. Aset pajak tangguhan tidak diakui sehubungan dengan akun-akun ini dikarenakan tidak memungkinkan tersedianya laba kena pajak di masa mendatang untuk dikompensasi dimana Grup seharusnya dapat memanfaatkannya.

The temporary differences that give rise to the deferred tax assets for the provision for impairment of trade receivables, provision for decline in inventory value and impairment provision of fixed assets do not expire, however before such provision can be deductible the Group must provide evidence that the receivable are not collectible, the declined inventories/impaired fixed assets are realized, and thereby must sell or write off the declined/impaired balances. Accumulated tax loss carry forwards, which as of 31 December 2017 amounted to Rp 83,388,889,852, will expire in 2021 and 2022 if not utilized against future taxable profits. Deferred tax assets have not been recognized with respect to these items because it is not probable that future taxable profits will be available against which the Group can utilize the benefits there from.

Realisasi dari aset pajak tangguhan Perseroan dan entitas anaknya tergantung pada laba operasinya. Manajemen berkeyakinan bahwa aset pajak tangguhan yang diakui dapat direalisasikan dengan kompensasi pajak penghasilan atas laba kena pajak pada periode mendatang.

Realization of the Company and its subsidiaries’ deferred tax assets is dependent upon their profitable operations. Management believes that the recognized deferred tax assets are probable of being realized through offset against taxes due on future taxable income.

h. Grup telah berpartisipasi dalam program pengampunan

Pajak berdasarkan Undang - Undang No. 11 Tahun 2016 (Undang- Undang Pengampunan Pajak) dengan memperoleh persetujuan pengampunan pajak dari Menteri Keuangan di Desember 2016. Sehingga klaim restitusi pajak dan aset pajak tangguhan dari rugi fiskal yang telah diakui sebelum tanggal persetujuan pengampunan pajak, dihentikan pengakuannya, dan dampaknya diakui dalam laba rugi pada tanggal persetujuan pengampunan pajak di tahun 2016.

h. The Group has participated in Tax Amnesty program under Law No. 11/2016 (Tax Amnesty Law) upon receiving an approval from the Minister of Finance in December 2016. Consequently, claims for tax refund and deferred tax assets from tax loss carryforward that previously had been recognized prior to the date of Tax Amnesty approval are derecognized, and the impact is accounted for profit or loss at the date of Tax Amnesty Approval in 2016.

i. Sesuai peraturan perpajakan di Indonesia, Perseroan dan entitas anak melaporkan/menyetorkan pajak untuk setiap entitas sebagai suatu badan hukum yang terpisah berdasarkan sistem self-assessment. Fiskus dapat menetapkan atau mengubah pajak-pajak tersebut dalam batas waktu yang ditentukan sesuai dengan ketentuan yang berlaku.

i. Under the taxation laws of Indonesia, the Company and subsidiary submit/pay tax returns for each legal entity on the basis of self-assessment. The tax authorities may assess or amend taxes within the statute of limitations, under prevailing regulations.





34


Posisi pajak Perseroan dan entitas anak mungkin akan dipertanyakan oleh otoritas pajak. Manajemen akan mempertahankan posisi pajak Perseroan dan entitas anak secara gigih yang diyakini beralaskan dasar teknikal, yang sesuai dengan peraturan pajak. Oleh karena itu, manajemen berkeyakinan bahwa akrual atas liabilitas pajak cukup untuk semua tahun pajak yang belum diaudit berdasarkan penilaian berbagai faktor, termasuk interpretasi peraturan pajak dan pengalaman sebelumnya. Penilaian dilakukan berdasarkan estimasi dan asumsi dan mungkin melibatkan pertimbangan mengenai kejadian di masa mendatang. Informasi baru yang tersedia dapat menyebabkan manajemen mengubah pertimbangannya berkaitan dengan kecukupan liabilitas pajak yang telah ada. Perubahan terhadap liabilitas pajak akan berdampak pada beban pajak pada periode dimana penentuan tersebut ditetapkan.

The Company and subsidiaries tax positions may be challenged by the tax authorities. Management will vigorously defends the Company and subsidiaries tax positions which are believed to be grounded on sound technical basis, in compliance with the tax regulations. Accordingly, management believes that the accruals for tax liabilities are adequate for all open tax years based on the assessment of various factors, including interpretations of tax law and prior experience. This assessment relies on estimates and assumptions and may involve judgment about future events. New information may become available that causes management to change its judgment regarding the adequacy of existing tax liabilities. Such changes to tax liabilities will impact tax expense in the period in which such determination is made.

12. LIABILITAS IMBALAN KERJA 12. EMPLOYEE BENEFITS OBLIGATION

Sesuai dengan peraturan ketenagakerjaan di Indonesia, Grup wajib memberikan imbalan pasca kerja kepada karyawannya pada saat berakhirnya masa kerja atau pensiun. Imbalan pasca kerja ini terutama berdasarkan masa kerja dan kompensasi karyawan pada saat berakhirnya masa kerja atau pensiun.

In accordance with Indonesian labor regulations, the Group is required to provide certain post-employment benefits to its employees when their employment is terminated or when they retire. These benefits are primarily based on years of service and the employees’ compensation at termination or retirement.

Tabel berikut menyajikan saldo liabilitas dan mutasi liabilitas imbalan pasca kerja pada tanggal pelaporan dan beban yang diakui di 2017 dan 2016:

The following table reflects the balance of the obligation for post-employment benefits as of the reporting dates, as well as the movements in the obligation, and the expense recognized during 2017 and 2016:

Mutasi liabilitas imbalan pasti: Movements in the defined-benefits obligation:

2017 2016 Liabilitas imbalan pasti, awal tahun 118.736.272.000) 96.658.024.000) Defined benefits obligation, beginning of year Termasuk dalam laba rugi: Included in profit or loss: - Beban jasa kini 7.531.442.000) 7.800.085.000) - Current service costs - Beban masa lalu (2.066.033.000) -) - Past service cost - Beban bunga 9.724.502.000) 8.699.222.000) - Interest cost Termasuk dalam penghasilan

komprehensif lain:

Included in other comprehensive

income: Kerugian aktuarial yang timbul dari: Actuarial losses arising from:

- Penyesuaian 1.084.037.000) 5.397.759.000) - Experience adjustments - Asumsi keuangan 9.581.028.000) 6.813.284.000) - Financial assumptions

Lainnya Other Pembayaran imbalan (16.113.571.000) (6.632.102.000) Benefits paid Liabilitas imbalan pasti, akhir tahun 128.477.677.000) 118.736.272.000) Defined benefit obligation, end of the year





35

12. LIABILITAS IMBALAN KERJA 12. EMPLOYEE BENEFITS OBLIGATION (Lanjutan) (Continued)

Asumsi aktuarial Actuarial assumptions

Asumsi-asumsi utama yang digunakan untuk perhitungan aktuarial adalah sebagai berikut:

Principal assumptions used in the actuarial calculations were as follows:

2017 2016 Tingkat bunga 7,12% per tahun/ per annum 8,19% per tahun/per annum Discount rate Tingkat kenaikan gaji di masa depan 5% per tahun/per annum 5% per tahun/per annum Future salary increase

Pada tanggal 31 Desember 2017, durasi rata-rata tertimbang atas liabilitas imbalan pasti adalah 11,23 tahun (2016: 11,53 tahun).

As of 31 December 2017, the weigthed-average duration of the defined benefits obligation was 11.23 years (2016: 11.53 years).

Tingkat bunga digunakan dalam menentukan nilai kini liabilitas imbalan kerja pada tanggal penilaian. Secara umum, tingkat bunga berhubungan dengan hasil imbal balik obligasi pemerintah berkualitas tinggi yang diperdagangkan di pasar modal aktif pada tanggal pelaporan.

The discount rate used in determining the present value of the benefit obligation at valuation date. In general, the discount rate correlates with the yield on high quality government bonds that are traded in active capital markets at the reporting date.

Asumsi kenaikan gaji di masa depan memproyeksikan liabilitas imbalan kerja mulai dari tanggal penilaian sampai dengan usia pensiun normal. Tingkat kenaikan gaji umumnya ditentukan dengan memperhitungkan penyesuaian inflasi untuk tarif upah dan bertambahnya masa kerja.

The future salary increase assumption projects the benefit obligation starting from the valuation date through the normal retirement age. The salary increase rate is generally determined by applying inflation adjustments to pay scales, and by taking account of the length of service.

Analisis sensitivitas Sensitivity analysis Kemungkinan perubahan yang wajar pada tanggal pelaporan atas asumsi-asumsi aktuarial, akan mempengaruhi liabilitas imbalan pasti sebagaimana dibawah ini:

Reasonably possible changes to key actuarial assumptions, would have affected the defined benefit obligation at the reporting date by the following amounts:

2017 2016 Naik/Increase Turun/Decrease Naik/Increase Turun/Decrease Tingkat diskonto

(pergerakan 1%) (9.808.280.000)

11.114.698.000)

(9.102.949.000)

10.301.506.000) Discount rate

(1% movement) Tingkat kenaikan gaji masa

depan (pergerakan 1%) 11.071.086.000)

(9.925.981.000)

10.349.071.000)

(9.279.451.000)

Future salary increase rate

(1% movement)

Analisa ini memberikan perkiraan sensitivitas atas asumsi yang ada, namun tidak memperhitungkan variasi waktu distribusi pembayaran imbalan kerja dalam program pensiun imbalan pasti.

This analysis provides an approximation of the sensitivity of the assumption shown, but does not take account of the variability in the timing of the distribution of benefit payment expected under the plan.

PT KERAMIKA INDONESIA ASSOSIASI DAN ENTITAS ANAK/ PT KERAMIKA INDONESIA ASSOSIASI AND SUBSIDIARIES




36

13. MODAL SAHAM 13. SHARE CAPITAL

Pada tanggal 31 Desember 2017 dan 2016, modal dasar Perseroan sebesar Rp 1.822.800.000.000 (680.000.000 saham seri A dengan nilai nominal Rp 210 per saham dan 16.000.000.000 saham seri B dengan nilai nominal Rp 105 per saham), dimana Rp 1.612.180.500.000 (425.000.000 saham seri A dan 14.504.100.000 saham seri B) telah ditempatkan dan disetor penuh oleh pemegang saham.

As of 31 December 2017 and 2016, the Company’s authorized share capital amounted to Rp 1,822,800,000,000 (680,000,000 series A shares at nominal value of Rp 210 per share and 16,000,000,000 series B shares at nominal value of Rp 105 per share), of which Rp 1,612,180,500,000 (425,000,000 series A shares and 14,504,100,000 series B shares) have been issued to and fully paid-up by the shareholders.

Susunan pemegang saham Perseroan per 31 Desember 2017 dan 2016 adalah sebagai berikut:

The Company’s shareholding as of 31 December 2017 and 2016 was as follows:

Jumlah saham/Total Shares % Kepemilikan/ Total Modal/ Seri/Series- A Seri/Series- B % Ownership Total Capital

Rp SCG Building Materials

Co., Ltd - 14.378.410.753 96,31 1.509.733.129.065 SCG Building Materials

Co., Ltd PT Mitra Investindo

Multicorpora 288.140.200 - 1,93 60.509.442.000 PT Mitra Investindo

Multicorpora Masyarakat lainnya 136.859.800 125.689.247 1,76 41.937.928.935 Public 425.000.000 14.504.100.000 100,00 1.612.180.500.000

14. TAMBAHAN MODAL DISETOR 14. ADDITIONAL PAID-IN CAPITAL

Merupakan tambahan modal disetor yang timbul dari transaksi berikut:

Represents additional paid-in capital arising from the following transactions:

2017 2016 Tambahan modal disetor dari penerbitan

saham baru tahun 2011 8.283.094.314 8.283.094.314 Issuance of additional capital stock in

2011 Hasil pelaksanaan penawaran umum

terbatas II (HMETD) – bersih tahun 2012 147.039.985.950 147.039.985.950

Limited public offering II (HMETD) – in 2012

Selisih kurs dari setoran modal pada tahun 2012 4.329.323.713 4.329.323.713

Foreign exchange differences from capital injections in 2012

Deklarasi properti investasi sebagai akibat dari pengampunan pajak 2016 diakui sebagai kontribusi modal non-moneter 15.409.320.000 15.409.320.000

The investment property declared as a result of tax amnesty in 2016 are

recognized as non-monetary capital contribution

Efek perubahan di ekuitas entitas anak 41.684.650.107 41.684.650.107 Effect of changes in equity of

subsidiaries 216.746.374.084 216.746.374.084





37

15. KEPENTINGAN NONPENGENDALI 15. NON-CONTROLLING INTEREST

Rincian bagian kepentingan nonpengendali atas ekuitas entitas anak yang dikonsolidasi adalah sebagai berikut:

The detail of the non-controlling interests’ share in equity of the consolidated subsidiaries are as follows:

2017 2016 Saldo awal 46.649.266.261) 59.488.521.085) Beginning balance Bagian atas laba komprehensif (5.077.040.578) (12.839.254.824) Share in comprehensive income 41.572.225.683)) 46.649.266.261)

16. PENDAPATAN 16. REVENUE

2017 2016

Penjualan lokal: Local sales: Pihak berelasi 769.714.266.533 826.840.115.942 Related parties Pihak ketiga - 2.281.818.697 Third parties

Penjualan ekspor: Export sales: Pihak berelasi 12.896.162.926 3.955.216.636 Related parties Pihak ketiga 27.453.694.966 30.637.433.691 Third parties

810.064.124.425 863.714.584.966

Penjualan lokal kepada PT Kokoh Inti Arebama Tbk (pihak berelasi) sebagai distributor Grup untuk tahun-tahun berakhir tanggal 31 Desember 2017 dan 2016 masing-masing sebesar 91,96% dan 94,61% dari jumlah penjualan.

Local sales to PT Kokoh Inti Arebama Tbk. (related party). as the Group’s distributor, represents 91.96% and 94.61% of net sales in 2017 and 2016, respectively.

17. BEBAN POKOK PENDAPATAN 17. COST OF REVENUE

2017 2016

Bahan baku yang digunakan 195.754.154.369) 243.319.868.728 Raw materials used Biaya tenaga kerja langsung 108.721.757.042) 104.451.755.675 Direct labor Beban penyusutan 106.334.480.827) 106.130.045.304 Depreciation expense Biaya pabrikasi 379.454.479.719) 396.176.189.788 Manufacturing overhead Jumlah biaya produksi 790.264.871.957) 850.077.859.495 Total production costs Pembelian barang jadi 17.269.298.467) -) Purchase of finished goods Pergerakan barang dalam proses dan

barang jadi (249.052.704) 65.797.815.979 Changes in the balance of work-in

process and finished goods 807.285.117.720) 915.875.675.474

Tidak terdapat pembelian kepada pihak tertentu yang melebihi 10% dari total pembelian.

There were no purchases to certain parties which exceed 10% of the total purchases.





38

18. BEBAN PENJUALAN 18. SELLING EXPENSES

2017 2016

Pemasaran dan promosi 7.692.737.974 22.013.883.649 Marketing and promotion Pengangkutan 3.873.054.770 3.732.934.887 Freight charges

11.565.792.744 25.746.818.536

19. BEBAN ADMINISTRASI 19. ADMINISTRATIVE EXPENSES

2017 2016

Gaji dan tunjangan karyawan lainnya 49.230.987.803 40.755.588.620 Salaries and other employee

compensation Imbalan kerja karyawan 15.189.911.000 16.499.307.000 Employee benefit expense Jasa profesional 7.886.512.570 5.395.066.343 Professional services Sewa 3.461.821.533 4.750.571.900 Rental Komunikasi 1.305.308.608 1.420.338.300 Communications Perjalanan dinas 1.239.930.307 970.863.600 Travelling expenses Biaya administrasi bank 707.902.983 682.689.899 Bank charges Pajak dan perijinan 616.616.332 4.953.009.900 Taxes and licenses Jamuan dan sumbangan 438.629.918 354.876.438 Entertainment and donation Perbaikan dan pemeliharaan 331.194.401 541.531.000 Repairs and maintenance Perlengkapan kantor 109.828.316 292.927.200 Office supplies Penyusutan 83.703.212 175.837.000 Depreciation Lain-lain 7.904.367.268 11.735.354.200 Others 88.506.714.251 88.527.961.400

20. PENDAPATAN (BEBAN) LAIN-LAIN, 20. OTHER INCOME (EXPENSES), BERSIH NET

2017 2016 Laba (rugi) penjualan aset tetap 2.664.505.348) (7.362.862.706) Gain (loss) on sale of fixed assets Rugi penjualan properti investasi (14.490.000) -) Loss on sale of investment property Lain-lain 1.946.953.264) 2.501.757.482) Others 4.596.968.612) (4.861.105.224)

21. SALDO LABA YANG TELAH DITENTUKAN 21. APPROPRIATED PENGGUNAANNYA RETAINED EARNINGS

Rapat Umum Pemegang Saham Tahunan Perseroan tanggal 26 Juni 2015 (risalah dibuat oleh Sri Hidianingsih Adi Sugijanto. S.H., dengan akta No. 40) menyetujui sejumlah Rp 2.767.182.095 dari saldo laba ditetapkan sebagai dana cadangan.

The Annual General Shareholders’ Meeting of the Company on 26 June 2015 (minutes prepared by notary public Sri Hidianingsih Adi Sugijanto. S.H., by deed No.40) resolved to appropriate Rp 2,767,182,095 of the retained earnings.





39

21. SALDO LABA YANG 21. APPROPRIATED TELAH DITENTUKAN PENGGUNAANNYA RETAINED EARNINGS (Lanjutan) (Continued)

Rapat Umum Pemegang Saham Tahunan Perseroan tanggal 12 Juni 2014 (risalah dibuat oleh Sri Hidianingsih Adi Sugijanto, S.H., dengan akta No. 18) menyetujui sejumlah Rp 2.260.809.188 dari saldo laba ditetapkan sebagai dana cadangan.

The Annual General Shareholders’ Meeting of the Company on 12 June 2014 (minutes prepared by Sri Hidianingsih Adi Sugijanto, S.H., by deed No. 18) resolved to appropriate Rp 2,260,809,188 of the retained earnings.

Rapat Umum Pemegang Saham Tahunan Perseroan tanggal 20 Juni 2013 (risalah dibuat oleh Sri Hidianingsih Adi Sugijanto, S.H., dengan akta No. 27) menyetujui sejumlah Rp 2.131.183.191 dari saldo laba ditetapkan sebagai dana cadangan.

The Annual General Shareholders’ Meeting of the Company on 20 June 2013 (minutes prepared by Sri Hidianingsih Adi Sugijanto, S.H., by deed No. 27) resolved to appropriate Rp 2,131,183,191 of the retained earnings.

22. RUGI PER SAHAM 22. LOSS PER SHARE

Perhitungan rugi per saham dasar berdasarkan pada informasi berikut:

The computation of basic loss per share is based on the following data:

2017 2016

Rugi tahun berjalan yang diatribusikan kepada pemilik entitas induk (80.734.111.970) (240.197.622.831)

Loss for the year attributable to the owners of the Company

Jumlah saham beredar/ditempatkan rata-

rata tertimbang 14.929.100.000) 14.929.100.000) Weighted average of total

outstanding/issued shares Rugi per saham (5,41) (16,09) Loss per share

23. SALDO DAN TRANSAKSI DENGAN 23. RELATED PARTY BALANCES AND PIHAK-PIHAK BERELASI TRANSACTIONS

Entitas induk terakhir grup adalah The Siam Cement Public Company Limited (berbadan hukum di Thailand)

The ultimate parent of the Group is The Siam Cement Public Company Limited (incorporated in Thailand)

Ikhtisar transaksi Grup yang signifikan dengan pihak-pihak berelasi dan persentasenya terhadap total pendapatan dan beban terkait, adalah sebagai berikut:

Summary of significant transactions of the Group with the related parties and its percentage to the total related income or expenses, is as follows:





40

23. SALDO DAN TRANSAKSI DENGAN 23. RELATED PARTY BALANCES AND PIHAK-PIHAK BERELASI (Lanjutan) TRANSACTIONS (Continued)

2017 2016 2017 2016

Pendapatan usaha (Catatan 16) Revenue (Note 16)

PT Kokoh Inti Arebama Tbk 744.921.659.185 817.121.665.343 91,96% 94,61% PT Kokoh Inti Arebama Tbk PT Surya Siam Keramik 24.792.606.671 9.718.450.599 3,06% 1,13% PT Surya Siam Keramik Thai Ceramic Co. Ltd 9.847.669.449 3.528.201.813 1,22% 0,41% Thai Ceramic Co. Ltd Mariwasa Siam Ceramics

Inc. 3.048.494.154 427.014.823 0,38% 0,05% Mariwasa Siam Ceramics

Inc. 782.610.429.459 830.795.332.578 96,61% 96,2%

2017 2016 2017 2016

Pembelian Purchase

PT Kokoh Inti Arebama Tbk 17.269.298.467 - 8,07% - PT Kokoh Inti Arebama Tbk PT Indocorr Packaging

Cikarang 6.664.984.000 - 3,11% - PT Indocorr Packaging

Cikarang 23.934.282.467 - 11,18% -

Beban penjualan Selling expenses Pemasaran dan promosi Marketing and promotion PT Kokoh Inti Arebama Tbk 2.000.000.000 15.376.267.889 26% 13,18% PT Kokoh Inti Arebama Tbk

Beban administrasi Administrative expense Jasa professional Professional services

Cementhai Ceramics Co., Ltd. 5.494.015.767 6.909.684.041 6,21% 8,25%

Cementhai Ceramics Co., Ltd.

Ikhtisar saldo Grup, yang signifikan dengan pihak-pihak berelasi dan persentasenya terhadap total aset atau liabilitas terkait, adalah sebagai berikut:

Summary of significant balance of the Groups with the related party Group and its percentage to the related total assets or liabilities, is as follows:

2017 2016 2017 2016 Piutang usaha (Catatan 5) Trade receivables (Note 5)

PT Kokoh Inti Arebama Tbk 363.365.626.583 350.730.709.902 20,56% 18,86% PT Kokoh Inti Arebama Tbk

PT Surya Siam Keramik 32.077.008.641 15.290.936.539 1,81% 0,82% PT Surya Siam Keramik Thai Ceramics Co., Ltd. 976.073.787 - 0,06% -% Thai Ceramics Co., Ltd. Mariwasa Siam Ceramics

Inc. 195.822.792 - 0,01% -% Mariwasa Siam Ceramics

Inc.

396.614.531.803 366.021.646.441 22,44% 19,68%

Piutang lain-lain Other receivables

PT Kokoh Inti Arebama Tbk 4.618.499.003 2.647.727.818 0,26% 0,14% PT Kokoh Inti Arebama Tbk

PT Surya Siam Keramik - 398.270.980 - 0,02% PT Surya Siam Keramik 4.618.499.003 3.045.998.798 0,26% 0,16%

Utang usaha (Catatan 8) Trade Payables (Note 8)

PT Kokoh Inti Arebama Tbk 4.313.238.820 - 1,26% - PT Kokoh Inti Arebama Tbk

PT Indocorr Packaging Cikarang 2.377.879.025 - 0,70% -

PT Indocorr Packaging Cikarang dd

6.691.117.845 - 1,96% -





41

23. SALDO DAN TRANSAKSI DENGAN 23. RELATED PARTY BALANCES AND PIHAK-PIHAK BERELASI (Lanjutan) TRANSACTIONS (Continued)

2017 2016 2017 2016

Utang lain-lain (Catatan 9) Other payables (Note 9)

Cementhai Ceramics Co., Ltd. 25.547.095.434 20.053.263.587 7,49% 5,90%

Cementhai Ceramics Co., Ltd.

The Siam Cement Public Co., Ltd. 5.978.782.434 - 1,75% -

The Siam Cement Public Co., Ltd. Dd

PT Kokoh Inti Arebama Tbk -) 360.905.588 - 0,11% PT Kokoh Inti Arebama Tbk

Thai Ceramics Co., Ltd. 505.397.935 - 0,15% - Thai Ceramics Co., Ltd. IT One Co., Ltd. 115.274.408 109.955.267 0,03% 0,03% IT One Co., Ltd. Thai German Ceramic

Industry 84.924.235 - 0,02% - Thai German Ceramic

Industry PT Surya Siam Keramik 13.750.000 - 0,00% - PT Surya Siam Keramik

32.245.224.446 20.524.124.442 9,46% 6,04%

Sifat hubungan dan jenis transaksi dengan pihak-pihak berelasi adalah sebagai berikut:

The nature of relationship and transactions with related parties, is as follows:

Pihak-pihak berelasi/Related parties) Hubungan relasi/Related parties

relationship) Transaksi/Transactions Cementhai Ceramics Co., Ltd. Entitas sepengendali/Entity under

common control Utang lain-lain/Other payable

Thai Ceramic Co., Ltd. Entitas sepengendali/Entity under common control

Piutang usaha, utang lain-lain, dan penjualan/Trade receivable, other payable, and sales

PT Kokoh Inti Arebama Tbk Entitas sepengendali/Entity under common control

Piutang usaha, piutang lain-lain, utang usaha, penjualan, dan pembelian/Trade receivable, other receivable, trade payable, sales, and purchase

PT Surya Siam Keramik Entitas sepengendali/Entity under common control

Piutang usaha, utang lain-lain, dan penjualan/Trade receivable, other payable, and sales

Mariwasa Siam Ceramics Inc. Entitas sepengendali/Entity under common control

Piutang usaha dan penjualan/Trade receivable and sales

PT Indocorr Packaging Cikarang Entitas sepengendali/Entity under common control

Utang usaha dan pembelian/Trade payable and purchase

IT One Co., Ltd. Entitas sepengendali/Entity under common control

Utang lain-lain/Other payable

Thai German Ceramic Industry Entitas sepengendali/Entity under Common control


The Siam Cement Public Co., Ltd. Entitas sepengendali/Entity under Common control


Kompensasi manajemen kunci Key management compensation Grup memberikan kompensasi kepada karyawan kunci. Imbalan yang diberikan kepada direksi dan komisaris selama tahun berjalan adalah sebagai berikut:

The Group provides compensation to the key management personnel. The remuneration of directors and commissioners during the years were as follows:

2017 2016 Imbalan jangka pendek 12.304.805.927 14.374.116.680 Short-term benefits





42

24. INFORMASI SEGMEN OPERASI 24. OPERATING SEGMENT INFORMATION

Segmen operasi dilaporkan sesuai dengan pelaporan internal kepada pembuat keputusan operasional, yang bertanggung jawab atas alokasi sumber daya ke masing-masing segmen yang dilaporkan serta menilai kinerja masing-masing segmen tersebut. Grup memiliki tiga (3) segmen yang dilaporkan meliputi keramik dinding, keramik genteng dan keramik lantai.

Operating segments are reported in accordance with the internal reporting provided to the chief operating decision maker, which is responsible for allocating resources to the reportable segments and assesses its performance. The Group has three (3) reportable segments including ceramic wall tiles, ceramic roof tiles and ceramic floor tiles.

2017 Perseroan Entitas Anak/ Company The Subsidiaries

Keramik Dinding/ Keramik Genteng/

Ceramic Keramik Lantai/

Ceramic Eliminasi/ Konsolidasian/ Wall Tiles Roof Tiles Floor Tiles Elimination Consolidated

Laporan laba rugi dan atau

penghasilan komprehensif lain, konsolidasian

Consolidated statement of profit or loss and other comprehensive income

Pendapatan 247.294.856.297) 112.874.662.950) 453.395.571.381) (3.500.966.203) 810.064.124.425) Revenue Beban pokok pendapatan (248.289.144.364) (117.274.824.391) (445.222.115.168) 3.500.966.203) (807.285.117.720) Cost of revenue Laba (rugi) kotor (994.288.067) (4.400.161.441) 8.173.456.213) -) 2.779.006.705) Gross profit (loss) Beban operasi (48.455.734.293) (11.977.044.333) (37.780.173.561) -) (98.212.952.187) Operating expenses Pendapatan keuangan 4.008.576.551) 4.440.427.138) (7.725.734.387) -) 723.269.302) Finance income Rugi sebelum pajak (45.441.445.809) (11.936.778.636) (37.332.451.735) -) (94.710.676.180) Loss before tax Manfaat (beban) pajak

penghasilan 10.296.580.263) (4.934.166.309) 4.047.285.671) -) 9.9.409.699.625) Income tax benefit (expense)

Rugi bersih (35.144.865.546) (16.870.944.945) (33.285.166.064) -) (85.300.976.555) Net loss

Penghasilan komprehensif lain (2.321.566.500) (1.963.538.250) (3.713.694.000) -) (7.998.798.750) Other comprehensive

income

Total penghasilan komprehensif (37.466.432.046) (18.834.483.195) (36.998.860.064) -) (93.299.775.305) Total comprehensive income Laporan posisi keuangan

konsolidasian Consolidated statement of

financial position

Aset 1.731.752.065.943) 639.899.558.090) 768.452.108.775) (1.375.914.357.262) 1.764.189.375.546) Assets Liabilitas (162.442.126.174) (53.158.986.714) (493.002.188.982) 415.023.255.834) (293.580.046.036) Liabilities Informasi Tambahan Other Information Pengeluaran barang modal (aset

tetap) 2.565.451.450) 1.217.609.990) 6.924.446.401) -) 10.707.507.841) Capital expenditures (property

and equipment)

Penyusutan aset tetap 34.996.893.214) 24.518.737.866) 46.902.552.959) -) 106.418.184.039) Depreciation of property and

equipment

2016 Perseroan/ Entitas Anak/ Company The Subsidiaries

Keramik Dinding/ Keramik Genteng/

Ceramic Keramik Lantai/

Ceramic Eliminasi/ Konsolidasian/ Wall Tiles Roof Tiles Floor Tiles Elimination Consolidated

Laporan laba rugi dan atau

penghasilan komprehensif lain, konsolidasian

Consolidated statement of profit or loss and other comprehensive income

Pendapatan 288.570.319.141) 128.699.076.188) 448.649.956.166) (2.204.766.529) 863.714.584.966) Revenue Beban pokok pendapatan (313.273.143.600) (133.555.143.433) (471.252.154.970) 2.204.766.529) (915.875.675.474) Cost of sales Rugi kotor (24.702.824.459) (4.856.067.245) (22.602.198.804) -) (52.161.090.508) Gross loss Beban operasi (65.738.358.254) (14.502.579.644) (39.450.027.700) 3.060.900.000) (116.630.065.598) Operating expenses Pendapatan keuangan 4.007.098.745) 3.392.466.087) (1.474.989.019) (3.060.900.000) 2.863.675.813) Finance income Rugi sebelum pajak (86.434.083.968) (15.966.180.802) (63.527.215.523) -) (165.927.480.293) Loss before tax Beban pajak penghasilan (43.435.552.560) (16.234.882.766) (26.901.154.501) -) (86.571.589.827) Income tax expense

Rugi bersih (129.869.636.528) (32.201.063.568) (90.428.370.024) -) (252.499.070.120) Net loss

Penghasilan komprehensif lain (3.076.246.500) (2.173.341.000) (3.908.694.750) -) (9.158.282.250) Other comprehensive

income

Total penghasilan komprehensif (132.945.883.028) (34.374.404.568) (94.337.064.774) -) (261.657.352.370) Total comprehensive income Laporan posisi keuangan

konsolidasian Consolidated statement of

financial position

Aset 1.753.450.477.033) 657.802.131.441) 853.569.491.143) (1.407.612.633.630)) 1.857.209.465.987) Assets Liabilitas (133.909.014.279) (52.256.833.231) (533.203.123.677) 446.721.532.202 (272.647.438.985) Liabilities Informasi Tambahan Other Information Pengeluaran barang modal (aset

tetap) 12.607.213.152) 6.641.627.766) 21.803.574.410) 41.052.415.328) Capital expenditures (property

and equipment)

Penyusutan aset tetap 35.692.255.228) 26.872.508.129) 43.741.118.947) 106.305.882.304) Depreciation of property and

equipment





43

24. INFORMASI SEGMEN OPERASI 24. OPERATING SEGMENT INFORMATION (Lanjutan) (Continued)

Aset segmen tidak termasuk pajak dibayar dimuka dan aset pajak tangguhan. Liabilitas segmen tidak termasuk utang pajak dan liabilitas pajak tangguhan.

Segment assets do not include prepaid taxes and deferred tax assets. Segment liabilities do not include taxes payable and deferred tax liabilities.

25. INSTRUMEN KEUANGAN DAN 25. FINANCIAL INSTRUMENTS AND MANAJEMEN RISIKO KEUANGAN FINANCIAL RISK MANAGEMENT

Instrumen keuangan Financial instruments Aset dan liabilitas keuangan Grup diharapkan akan direalisasi, atau diselesaikan dalam waktu dekat. Karenanya, nilai tercatatnya mendekati nilai wajarnya.

The Group’s financial assets and liabilities are expected to be realized, or settled in the near term. Therefore, their carrying amounts approximate their fair values.

Manajemen risiko keuangan Financial risk management Risiko utama yang timbul dari instrumen keuangan Grup adalah risiko kredit, risiko likuiditas, dan risiko pasar (risiko mata uang).

The main risks arising from the Group’s financial instruments are credit risk, liquidity risk, and market risk (currency risk).

a. Risiko kredit a. Credit risk

Risiko kredit Grup muncul terutama dari risiko kerugian jika pelanggan gagal untuk memenuhi liabilitas kontraktualnya. Grup mengelola dan mengawasi risiko kredit dari piutang dengan menetapkan kebijakan untuk memastikan bahwa penjualan produk hanya dilakukan kepada pelanggan yang layak dengan riwayat kredit yang baik. Selain itu, Grup melakukan analisa dan persetujuan kredit yang hati-hati dan juga pengawasan terhadap saldo piutang dilakukan secara berkesinambungan untuk meminimalisasi piutang yang tidak dapat ditagih.

The Group’s credit risk mainly arises from risk of loss if customers fail to discharge their contractual obligations. The Group manages and controls the credit risk of receivables by setting policies in place to ensure that sales of products are made only to creditworthy customers with proven track record or good credit history. In addition, the Group has maintained prudent analysis and credit approval and also monitored receivable balances continuously in order to minimize the exposure to bad debt.

Untuk menghindari risiko konsentrasi, saldo bank dan setara kas ditempatkan pada beberapa lembaga keuangan yang memiliki kinerja yang baik.

To avoid concentration of risk of loss that might result from a bank failure, cash in banks and cash equivalent are deposited at multiple financial institutions of good standing.

Nilai maksimum risiko kredit dari aset keuangan adalah sama dengan nilai tercatatnya eksposur sebagai berikut:

The ultimate amount of exposure to credit risk of financial assets is equal to their carrying amounts, as follows :

Nilai tercatat/Carrying amount 2017 2016

Kas di bank dan setara kas 9.331.490.361 33.749.947.118 Cash in banks and cash equivalents Piutang usaha 399.189.154.260 371.460.860.571 Trade receivables Piutang lain-lain 5.268.018.471 4.470.759.884 Other receivables Aset tidak lancar lainnya 453.661.853 1.999.099.609 Other non-current assets

414.242.324.945 411.680.667.182





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25. INSTRUMEN KEUANGAN DAN 25. FINANCIAL INSTRUMENTS AND FINANCIAL MANAJEMEN RISIKO KEUANGAN (Lanjutan) RISK MANAGEMENT (Continued)

Manajemen risiko keuangan (lanjutan) Financial risk management (continued)

b. Risiko likuiditas b. Liquidity risk

Risiko likuiditas adalah risiko yang akan terjadi apabila Grup menemui kesulitan untuk memenuhi kewajibannya sehubungan dengan liabilitas keuangan yang diselesaikan dengan pembayaran kas atau penyerahan aset keuangan lainnya. Grup mengelola likuiditasnya dengan secara berkala menyusun dan mengevaluasi anggaran atau proyeksi arus kas dan realisasinya.

Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group manages this liquidity risk by preparing and evaluating budget or cash flow projection and its realization on a regular basis.

Berikut adalah jatuh tempo kontraktual dari liabilitas keuangan, termasuk estimasi pembayaran bunga:

The following are the contractual maturities of financial liabilities, including estimated interest payments:

Arus kas kontraktual/Contractual cashflows

Nilai Tercatat/ Carrying amount Jumlah/Total

Dalam 1 tahun/ Within 1 year

Lebih dari 1 tahun/

More than 1 year

31 Desember 2017 31 December 2017

Liabilitas keuangan Financial liabilities

Utang usaha 92.208.750.122 92.208.750.122 92.208.750.122 - Trade payables Utang lain-lain 34.285.661.268 34.285.661.268 34.285.661.268 - Other payables Utang dividen 898.861.837 898.861.837 898.861.837 - Dividend payable Beban akrual 37.709.095.809 37.709.095.809 37.709.095.809 - Accrued expenses

165.102.369.036 165.102.369.036 165.102.369.036 -

Arus kas kontraktual/Contractual cashflows

Nilai Tercatat/ Carrying amount Jumlah/Total

Dalam 1 tahun/ Within 1 year

Lebih dari 1 tahun/

More than 1 year


Liabilitas keuangan Financial liabilities

Utang usaha 83.303.422.890 83.303.422.890 83.303.422.890 - Trade payables Utang lain-lain 26.645.059.792 26.645.059.792 26.645.059.792 - Other payables Utang dividen 898.861.837 898.861.837 898.861.837 - Dividend payable Beban akrual 43.063.822.466 43.063.822.466 43.063.822.466 - Accrued expenses

153.911.166.985 153.911.166.985 153.911.166.985 -





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Manajemen risiko keuangan (Lanjutan) Financial risk management (Continued)

c. Risiko mata uang c. Currency risk

Pembelian Grup dari pemasok luar negeri mengekspos Grup kepada fluktuasi nilai tukar mata uang asing, yang berasal dari mata uang selain mata uang fungsional Grup, muncul terutama dari utang dalam Dolar AS dan Euro. Grup mengelola risiko ini dengan membeli atau menjual mata uang asing pada tanggal spot, jika diperlukan.

Purchases of inventories from overseas suppliers expose the Group’s to fluctuating foreign exchange rates, from the currencies other than the Group’s functional currency, primarily arising from US Dollar and Euro payables. The Group manages this risk also by buying or selling foreign currencies at spot rates, when necessary.

Pada tanggal pelaporan, saldo aset dan liabilitas moneter dalam mata uang asing dijabarkan dalam Rupiah dengan menggunakan kurs yang berlaku sebagai berikut:

At reporting dates, balances of monetary assets and liabilities denominated in foreign currencies are translated into Rupiah using the prevailing exchange rates as follows:

2017 2016

Dolar Amerika Serikat (USD 1) 13.548 13.436 United States Dollar (USD 1) Euro (EUR 1) 16.174 14.162 Euro (EUR 1)

Exposur neto Grup terhadap mata uang asing utama (Dolar AS dan Euro) dan ekuivalennya dalam Rupiah adalah sebagai berikut:

The Group’s net exposure to main foreign currencies (US Dollar and Euro) is as follows:

2017

Dalam Dolar AS/

In US Dollar Dalam Euro/

In Euro

Setara Rupiah/ Equivalent in

Rupiah

Aset 587.716) 3.800) 8.023.837.568) Assets Liabilitas (173.191) (29.585) (2.824.899.458) Liabilities Exposur neto 414.525) (25.785) 5.198.938.110) Net exposure

2016

Dalam Dolar AS/ In US Dollar

Dalam Euro/ In Euro

Setara Rupiah/ Equivalent in

Rupiah

Aset 178.105) 3.399) 2.441.155.418) Assets Liabilitas (897.081) (57.528) (12.867.891.852) Liabilities Exposur neto (718.976) (54.129) (10.426.736.434) Net exposure

Menguat/melemahnya Rupiah terhadap Dolar AS dan Euro pada tanggal 31 Desember 2017 dan 2016 akan mengakibatkan peningkatan (penurunan) ekuitas dan laba rugi setelah pajak penghasilan sebesar jumlah yang ditunjukkan di bawah ini. Analisa ini didasarkan pada varian kurs Dolar AS yang manajemen anggap cukup layak pada tanggal pelaporan. Analisa ini mengasumsikan bahwa semua variabel lain, terutama suku bunga, tetap konstan dan mengabaikan dampak dari penjualan dan pembelian yang dianggarkan.

A strengthening/weakening of the Rupiah, as indicated below, against the US Dollar at 31 December 2017 and 2016 would have increased (decreased) equity and profit or loss after income tax by the amounts shown below. This analysis is based on US Dollar rate variances that management considers as being reasonably possible at the reporting date. The analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecasted sales and purchases.





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Manajemen risiko keuangan (Lanjutan) Financial risk management (Continued)

c. Risiko mata uang (Lanjutan) c. Currency risk (Continued)

Dampak pada ekuitas/

Dampak pada laba rugi setelah

pajak penghasilan/

Impact on profit or loss

Impact on equity after income tax 31 Desember 2017 31 December 2017

Dolar AS (pergerakan 1%) 42.119.885 42.119.885 US Dollar (1% movement) Euro (pergerakan 1%) 3.127.849 3.127.849 Euro (1% movement)


Dolar AS (pergerakan 1%) 72.451.212 72.451.212 US Dollar (1% movement) Euro (pergerakan 1%) 5.749.312 5.749.312 Euro (1% movement)

26. IKATAN - IKATAN 26. AGREEMENTS

Pada tanggal 6 September 2004, Grup mengadakan Distributorship Agreement dengan PT Kokoh Inti Arebama Tbk (Kokoh; pihak berelasi), di mana Kokoh ditunjuk sebagai distributor produk keramik Grup. Perjanjian ini telah diperbaharui beberapa kali dan perpanjangan terakhir dilakukan pada tanggal 1 Januari 2017, dengan tanggal efektif sejak 1 Januari 2017 sampai dengan 31 Desember 2019.

On 6 September 2004, the Group entered into Distributorship Agreement with PT Kokoh Inti Arebama Tbk (Kokoh; related party), where Kokoh was appointed as the distributor of the Group’s ceramic products. This agreement has been renewed several times and the latest renewal on 1 January 2017, with the effective date starting on 1 January 2017 until 31 December 2019.

Pada tanggal 1 Januari 2014, Perseroan dan KSM mengadakan Perjanjian Jasa Manajemen dan Bantuan Teknis dengan Cementhai Ceramics Company Limited (“CCCL”; pihak berelasi), Thailand. CCCL akan memberikan layanan manajemen dan bantuan teknis termasuk semua atau hasil apapun yang mungkin diperlukan sesuai dengan cakupan layanan dan layanan lainnya yang harus disetujui oleh kedua belah pihak.

On 1 January 2014, Perseroan and KSM entered into Management Service and Technical Assistance Agreement with Cementhai Ceramics Company Limited (“CCCL”; related party), Thailand. CCCL will provide management service and technical assistance including all or any deliverables as may be necessary according to the scope of service and other services to be agreed by both parties.

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As part of SCG – one of leading business conglomerate in ASEAN, KIA engaged employees to participate in SCG Sharing the Dream, the flagship CSR project of SCG with an aim to support further education as a key factor for country’s properity. SCG Sharing the Dream is a scholarship project that provides educational assistance for good moral students to more than 6,000 top achieving students in Indonesia, Vietnam, the Philippines, Myanmar, Laos, Cambodia, and Thailand per annum.

In Indonesia, SCG Sharing the Dream has been held for its sixth year since 2012, employees from 27 subsidiaries of SCG including KIA were engaged in this social program perpetually. This year, SCG Sharing the Dream has theme of “Bagimu Guruku” to embed grartitude to teacher who helped the students in achieve their dreams. This scholarship are given to 400 senior high school students from 40 senior high schools, spread throughout Jakarta, Bogor, Cileungsi, Karawang, South Tangerang, Sukabumi and Bayah.

The scholarships were granted to the students who have shown appreciation for their families and gratitude to their teachers while contributing to their communities though they have difficulties due to their economic conditions. This year, we also held “Home Visit” as one of the selection process. The selection team together with some employee as volunteer was visiting some houses of the students. Beside to select the right scholars, this home visit also aim to strenghthen relationship between SCG and communities. Not only that, after scholarship awarding ceremony, we also did post monitoring program to follow up the students development both academically and non academically.

CSR Activities of SCG

In addition to SCG Sharing the Dream, SCG also has sustainable human resource development focused programs in line with SCG’s commitment towards HR development. Such programs include SCG International Internship Program, SCG Drawing Your Career, and SCG Young Leaders Programs.

112 Annual Report 2017 PBAnnual Report 2017Laporan Tahunan 2017 Laporan Tahunan 2017

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