Dividend Policy
All issued and fully paid-up ordinary shares, including ordinary shares in the names offered in this Public Offering, have equal and equal rights including the right to dividend distribution.
In accordance with Indonesian laws and regulations, the decision regarding the final dividend payment each year must be approved by shareholders at the annual general meeting of shareholders after a recommendation from the Board of Directors of the Company, which will further depend on revenue, operational and financial conditions, liquidity conditions, capital expenditure plans, acquisition opportunities, future business prospects, compliance with applicable laws and regulations and other factors considered relevant by the Board of Directors of the Company. The Company may declare a final dividend every year if the Company has positive retained earnings. A portion of the Company’s net profit, as determined by the annual general meeting of shareholders, shall be allocated to the reserve fund until the amount of such reserve fund reaches at least 20% of the total paid-up capital even though there is no specified period of time to reach this funding level. Unless otherwise specified in the annual general meeting of shareholders, the remaining net profit (net of reserve fund allocation) may be distributed to shareholders as the final dividend value.
The Company’s Articles of Association allow for the distribution of interim cash dividends. The distribution of interim cash dividends can be made if the amount of the Company’s net worth does not become less than the amount of issued and paid-up capital plus mandatory reserves as required in the Law on PT. The distribution of interim dividends must not interfere with or cause the Company to be unable to fulfill its obligations to creditors or interfere with the Company’s activities. The interim dividend distribution will be determined by the Board of Directors of the Company after approval by the Board of Commissioners. If at the end of the financial year the Company suffers a loss, the distribution of interim dividends must be returned by the shareholders to the Company, and the Board of Directors together with the Board of Commissioners will be jointly responsible in the event that interim dividends are not returned to the Company.
After this Initial Public Offering, from the fiscal year 2023 onwards, the Company’s management intends to pay cash dividends to the Company’s shareholders in an amount of 25% (twenty-five percent) of the Company’s net profit for the current year. The amount of dividend distribution will depend on the results of the Company’s business activities and cash flow as well as its business prospects, working capital capital needs, capital expenditures and investment plans in the future and taking into account regulatory restrictions and other obligations.
Once the decision has been made to pay dividends, the dividend will be paid in Rupiah.
The Company’s management declares that there are no negative covenants that can harm the rights of public shareholders.