PT Bosowa Corporation

Corporate Governance is characterized by transparency and disclosure, protection and enforceability of shareholders rights, and by directors capable of independent behavior for the good of all stakeholders; Corporate Governance is also a process and structure whereby companies are directed and managed, with the objectives to improve the long term values of the shareholders, through the improvement of corporate performance and accountability system, and in consideration of the Stakeholders.

Based on this notion, Bosowa Corporation has declared 2009 as the commencing year for the implementation of “Good Corporate Governance” (GCG). An internal study shows that all levels of the management and staff of Bosowa have the real intention and plan to carry out Corporate Governance practices in the Company. Further, in order to obtain independent opinion, recommendation and guidance to apply GCG, this year Bosowa will appoint independent consultant to help in the planning, implementation, and evaluation of GCG in the right and true manner.

Bosowa’s plan of actions to apply Corporate Governance are as follows:

• Strengthen the function of the audit committee
• Strengthen the function of the internal audit division
• Strengthen the internal control systems
• Provide consolidated financial report on time
• To strengthen the role of the Corporate Secretary
• To improve the effectiveness of the BOD and the BOC
• To improve effectiveness of operations
• To improve transparency and disclosure practices
• To socialize Good Governance