Each Supporting Committee of the Board of Commissioners is chaired by a member of the Board of Commissioners and the duties and responsibilities of each Committee are listed in their respective charters.

The Bio Farma Audit Committee was established on August 29, 2003 and functions to assist the Board of Commissioners in carrying out its supervisory duties on the management of the Company in accordance with the principles of Good Corporate Governance (GCG), provide advice on the implementation of internal control and corporate audits, and make a written report on each assignment given by the Board of Commissioners, a report on the implementation of the Audit Committee's activities and the level of achievement of its performance to be disclosed in the Company's Annual Report.

Audit Committee members are appointed and dismissed by the Board of Commissioners and reported to the GMS. Members of the Committee who come from the Board of Commissioners cease to exist when their term of office as members of the Board of Commissioners ends.

BASIS FOR THE ESTABLISHMENT OF THE AUDIT COMMITTEE

The establishment of the Audit Committee refers to Law No. 19 of 2003 on SOEs article 70 paragraph 1 which states that the Board of Commissioners must form an Audit Committee that works collectively and functions as a company supervisor.

Regulation of the Minister of SOEs Number: PER-05/MBU/2006 dated December 20, 2006 concerning Audit Committees for State-Owned Enterprises (SOEs) which was updated by Regulation of the Minister of SOEs Number: PER-12/MBU/2012 dated August 24, 2012 concerning Supporting Organs of the Board of Commissioners/Supervisory Board of SOEs.

The Audit Committee of PT Bio Farma (Persero) has been established since 2003, in accordance with Decree No. 023/KEP/DK/BF/2003 dated August 29, 2003 on the Establishment of the Audit Committee of PT Bio Farma (Persero). The Audit Committee functions to assist the Board of Commissioners in carrying out its supervisory duties on the management of the Company in accordance with the principles of Good Corporate Governance (GCG).

AUDIT COMMITTEE COMPOSITION

AUDIT COMMITTEE JOB DESCRIPTION

In performing its duties, the Audit Committee has an Audit Committee Charter which was ratified on July 1, 2014. The Audit Committee Charter contains the background, vision, mission, purpose and objectives, position, membership, rights and authorities, duties and responsibilities, relationship with related parties, meetings, reports, as well as conflicts and code of ethics as guidelines for the Audit Committee.

Duties of the Audit Committee

1. Assist the Board of Commissioners to ensure the effectiveness of the internal control system and the effectiveness of the implementation of the duties of the external auditor and internal auditor;
2. assess the implementation of activities and audit results carried out by the internal control unit and external auditors;
3. provide recommendations on improving the management control system and its implementation;
4. ensuring that there are satisfactory evaluation procedures for information released by the company;
5. identifying matters that require the attention of the board of commissioners and other duties of the board of commissioners;
6. compile the type and amount of salary or honorarium allowances and facilities that have been/will be given to the Board of Directors and the Board of Commissioners to be proposed by the Board of Commissioners to the GMS;
7. evaluating and analyzing the payroll system, honorarium allowances facilities that have been/will be given to the management level and employees.

The Audit Committee also carries out other duties assigned by the Board of Commissioners, among others, as follows, but not limited to:

1. reviewing information about the Company as well as RJPP, RKAP, Company Management Report and other information;
2. reviewing the Company's compliance with laws and regulations applicable to the Company's activities;
3. reviewing complaints relating to the Company;
4. review the adequacy of the internal audit function including the number of auditors, annual work plan, and assignments that have been carried out;
5. review the adequacy of the external audit function including the audit plan and the number of auditors.

RIGHTS AND AUTHORITIES OF THE AUDIT COMMITTEE

1. New Audit Committee members are given an orientation or introduction program regarding the roles, responsibilities and framework of the Audit Committee.
2. The Audit Committee receives authority and assignments from the Board of Commissioners with due regard to regulations related to State-Owned Enterprises (SOEs).
3. In carrying out its duties, the Audit Committee is authorized to access records or information about employees, funds, assets and other company resources related to the performance of its duties.
4. The Audit Committee, based on the Letter of Assignment from the Commissioner, has the right of access to information in the Company from the Board of Directors, SPI and all organizational units of the company. If there are cases/indications of irregularities, the audit committee needs to scrutinize/clarify these cases.
5. The Audit Committee with the approval of the Commissioner may seek advice and assistance from experts and other professionals at the expense of the Company.

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