The Board of Commissioners established an Audit Committee. In order to achieve the most efficient and effective audit results from the said Audit Committee, the Company developed and endorsed working guidelines in the form of an Audit Committee Charter.

Composition and Profile of the Audit Committee

The Audit Committee is led by an Independent Commissioner and consists of independent members, as follows:

Chairman :  Kardinal Almasyah Karim
Member :  Mohamed Idwan Ganie
Member : Hery Kusnanto
"


In accordance with the Decree Letter of the Board of Commissioners No. 014.Kep. Kom/BMTR-CL/VIII/15 dated August 18, 2015, changes in the composition of Audit Commitee members, led by an Independent Commissioner and Independent members are as follows:

Chairman :  Beti Puspitasari Santoso
Member :  John Aristianto Prasetio
Member :  Hery Kusnanto
Member :  Mohamed Idwan Ganie
"


Beti Puspitasari Santoso

Mrs. Beti Puspitasari’s profile as Chairman of the Audit Committee, as well as an Independent Commissioner of the Company can be found on the Profiles of the Board of Commissioners.


John Aristianto Prasetio
Mr. John Aristianto Prasetio’s profile as Member of the Audit Committee, as well as an Independent Commissioner of the Company can be found on the Profiles of the Board of Commissioners.


Hery Kusnanto

Born in Yogyakarta, Indonesia in 1950, Mr. Kusnanto is a graduate of Accounting from the Faculty of Economics, Gadjah Mada University, Yogyakarta, class of 1975. Mr. Hery Kusnanto began his career as a Partner at Hanadi Sujendro & Co., a member firm of KPMG International (1986-1989), prior to which he had joined PPM Jakarta (1979-1989) as Audit Manager and at the Directorate General of the Financial Supervisory Department of the Ministry of Finance of Republic Indonesia (1975-1979) as Auditing Staff. He finally joined the Company in 1990, managing positions in several of the Company’s business units. He also served as Director of PT MNC Sky Vision (MSV) in 2008 until his appointment as Independent Commissioner of MSV in April 2011, a position he holds until today.


Mohamed Idwan Ganie
Mr. Mohamed Idwan Ganie’s profile as Member of the Audit Committee, as well as an Independent Commissioner of the Company can be found on the Profiles of the Board of Commissioners section in this Annual Report.


The legal appointment and term of office for the Audit Committee are as follows:


The Audit Committee’s autonomy is evident in the composition of its members, with 3 Independent Commissioners and 1 member not affiliated with the Company.

Duties and Responsibilities of the Audit Committee

To assist the Board of Commissioners in their supervisory function within the Company, the Audit Committee carries out a number of tasks outlined in the Audit Committee Charter, as follows:

  • Review the Company’s financial information whether released to the public and/or authorities, such as financial reports, projections and other documents related to the Company’s financial data.
  • Review the Company’s compliance to prevailing rules and regulations.
  • Provide unbiased opinion towards possible differences of opinion between management and the appointed Auditor regarding services rendered.
  • Make recommendations to the Board of Commissioners regarding the appointment of Auditors based on independence, scope of work and fees.
  • Conduct reviews on auditing activities of the Internal Auditor and to supervise follow-up actions of the Board of Directors based on the findings of the internal audit.
  • Review the effectiveness of risk management conducted by the Board of Directors, in case the Company does not have a risk monitoring function under the Board of Commissioners.
  • Investigate complaints relating to accounting and financial reporting procedures of the Company.
  • Review and advise the Board of Commissioners on matters that relate to the potential conflict of interests within the Company.
  • Maintain the confidentiality of documents, data and other Company information.

Implementation of the Activities of the Audit Committee

In accordance with the Company’s Audit Committee Charter, the Audit Committee implemented the following duties in 2015:

  • Reviewed the Company’s financial information whether released to the public and/or authorities, such as financial reports, projections and other documents related to the Company’s financial data.
  • Reviewed the Company’s compliance to prevailing rules and regulations.
  • Provided unbiased opinion towards possible differences of opinion between management and the appointed Auditor regarding services rendered.
  • Made recommendations to the Board of Commissioners regarding the appointment of Auditors based on independence, scope of work and fees.
  • Conducted reviews on auditing activities of the Internal Auditor and supervised follow-up actions of the Board of Directors based on the findings of the internal audit.
  • Reviewed the effectiveness of risk management conducted by the Board of Directors, in case the Company does not have a risk monitoring function under the Board of Commissioners.
  • Investigated complaints relating to accounting and financial reporting procedures of the Company.
  • Reviewed and advised the Board of Commissioners on matters that relate to the potential conflict of interests within the Company.
  • Maintained the confidentiality of documents, data and other Company information.


Meetings of the Audit Committee


As mandated by prevailing legislation and the Audit Committee Charter, the Audit Committee is required to conduct periodically at least 1 (one) times in three (3) months. Outcomes are to be recorded in the minutes of each meetng and signed by all members of the Audit Committee and then submitted to the Board of Commissioners.

In 2015, the Audit Committee held four meetings in March, May, September and November.

The attendance record of the meetings is as follows:


Reports on the Implement ation Activities of the Audit Committee

The Audit Committee regularly conducted meetings throughout 2015, with the following evaluation results:

  1. The Audit Committee conducted a review of the Consolidated Financial Statements for Fiscal Year 2015, which was audited by External Auditor Public Accounting Firm Osman Bing Satrio & Eny (Deloitte). Discussions on the Consolidated Financial Statements included the effects of SFAS and IFAS that were brought to effect in 2015. The External Auditor together with the Audit Committee also held discussions regarding critical accounting considerations in subsidiaries, significant accounting estimates, legal cases, as well as other significant issues and transactions that took place in 2015. The audit of Consolidated Financial Statements was published with an unqualified opinion.

    With regards to the audit engagement with the External Auditor, the Audit Committee is of the opinion that the audit process was conducted with the highest level of integrity and professionalism. There is no reason to believe a conflict of interest affected the independence of the auditor.
  1. The Audit Committee conducted a review of the operational activities and the financial condition of the Company, which was reflected in the Consolidated Financial Statements of quarters I, II and III of the current year.
  1. The Audit Committee conducted a review of the internal audit activity in 2015, and the implementation of the followup actions based on the findings of the Internal Audit unit. The audit activities conducted by the Internal Audit unit up to the third quarter of 2015 was assigned per line (cluster of business), wherein 67% was conducted within the FTA TV business cluster, 15% from other clusters (Sindo Media, Broadband & Infrastructure, New Media, Holding and Pictures business unit) and the remaining 18% from IT activities.

    In conducting the review, the Audit Committee alsorequested details on the methods of risk assessment per unit within the current year, as well as the effectiveness and process of the Company’s Whistleblowing System (WBS). The Audit Committee also received details on the Compliance & Control Self Assessment (CCSA) Project developed at the end of 2014.
  1. The Audit Committee conducted a legal review of the activities covering the Company’s compliance to prevailing laws and regulations, including its adherence to the regulation mandating disclosure of information to the capital market regulatory body. The Audit Committee also analyzed the company’s litigation process that emerged within the current year as well as the previous year.

In carrying out its duty to assist the Board of Commissioners with its supervisory function, full support was given to the Audit Committee, such as access to readily available information and the cooperation of the Company’s management and parties involved who were responsive in providing clarification and regularly attended organized meetings.