To boost the Board of Commissioners’ effective implementation of its responsibility based on the Regulation of the Financial Services Authority Number 55/POJK.04/2015 dated 23 December 2015, the Board of Commissioners appointed and reported the appointment of Audit Committee’s members through the Letter Number 070/JAPFA-OJK/LD-CS/IV/2017 dated 5 April 2017 on the Changes of the Company’s Audit Committee’s members. However, the Company had established and appointed members of the Audit Committee on 21 February 2002 based on the Letter to Jakarta Stock Exchange No. 006/Japfa-BEJ/LD-YS/2002.

Audit Committee Work Manual 
To carry out its duties and responsibilities for controlling and assessing the organization, the Audit Committee has a work manual as stated in Audit Committee Charter. The Audit Committee Charter stipulates, among others, duties and responsibilities of the Committee, stipulation of Audit Committee’s work procedure and responsibility. The Audit Committee Charter was developed based on the regulation and prevailing law and is constantly under review and was validated by PT Japfa Comfeed Indonesia Tbk’s Board of Commissioners on 5 July 2013.

Audit Committee Charter contains:

• Introduction
• Duties, Responsibilities and Authority
• Audit Committee’s Structure and Position
• Audit Committee’s Meeting
• Activity Reporting System
• Audit Committee’s Terms of Office
• Conflict and Code of Conduct
• Others

Independency of Audit Committee 
An Independent Commissioner and two professional members from the external parties lead the Audit Committee, pursuant to the provisions stipulated in OJK Regulation Number 55/ POJK.04/2015 dated 23 December 2015 concerning the Establishment and the Guideline for the Work Implementation of the Audit Committee. The Audit Committee has performed their duties and responsibilities professionally and independently

Audit Committee’s Duties and Responsibilities 
PT Japfa Comfeed Indonesia Tbk’s Audit Committee Charter states that the duties of responsibilities of the Audit Committee are to provide the Board of Commissioners with opinion concerning report or other matters submitted by the Board of Directors to the Board of Commissioners, identify matters demanding Board of Commissioners’ attention, and implement other duties related to the Board of Commissioners’ duties, which include:

• Conducting review of financial information to be released by the Company such as financial statements and other financial information, including affiliated transactions.
• Supervise the Company’s compliance with prevailing laws in the Stock Exchange and other laws related to the Company’s activities.
• Report to the Board of Commissioners on various risks faced by the Company and the implementation of risk management carried out by the Board of Directors.
• Review the implementation of audit by internal auditor and supervise follow-up actions by the Board of Directors based on findings of the internal auditor.
• Provide recommendations to the Board of Commissioners regarding the appointment of Public Accounting Firm listed in OJK and a member of the big 4.

In carrying out duties and responsibilities, the Audit Committee has the authority to access to internal audit report and other reports as required and directly communicate with both the internal audit and the external audit.

Audit Committee Meeting 
As stipulated in OJK’s regulation, POJK Number 55/POJK.04/2015 concerning the Establishment and Guidelines of Work Implementation of Audit Committee, the Audit Committee holds regular meetings at least once in 3 (three) months.