Under Indonesian corporate law the declaration of dividends is made by a resolution of the shareholders at the annual or general meeting of shareholders upon the recommendation of the Board of Directors. The Company may declare dividends in any year if it has positive retained earnings. Prior to end of financial year, an interim dividend may be distributed so long as it is permitted under the Company’s Articles of Association taking into account allowances for compulsory reserves as required in the Company Law ("Compulsory Reserves”). Such distribution is determined by the Board of Directors after first being approved by its Board of Commissioners.
The rate of dividends will be subject to the Company's cash flow, investment plans, liquidity condition, future business prospects and other factors considered relevant by its Board of Directors and regulatory restrictions, include requirements under the loan agreement (if any).
To the extent a decision is made to declare dividends, dividends will be paid in Rupiah. Holders of the Shares on the applicable record dates will be entitled to the full amount of dividends approved, subject to any Indonesian withholding tax imposed. Dividends received by a non-Indonesian holder of Shares will be subject to a maximum of 20% Indonesian withholding tax.