INTERNAL AUDIT UNIT CHARTER
PT. ALAKASA INDUSTRINDO Tbk
Jl. Pulogadung No. 4, Jakarta 13920

TABLE OF CONTENTS

Page
1. Introduction
2. Functions & Objectives of the Internal Audit Unit
3. Structure & Position of the Internal Audit Unit
4. Duties & Responsibilities of the Internal Audit Unit
5. Authority of the Internal Audit Unit
6. Internal Audit Unit Code of Ethics
7. Requirements for Auditors who Sit in the Internal Audit Unit
8. Prohibition of concurrent duties & positions
9. Appointment, Replacement & Dismissal of Head of Internal Audit Unit
10. Closing

1. Introduction

Based on the Decree of the Chairman of the Capital Market and Financial Institution Supervisory Agency Number: KEP-496 / BL / 2008 concerning the Establishment and Guidelines for the Preparation of the Internal Audit Unit Charter as regulated in Regulation No. IX.I.7, the Company as a Public company forms an Internal Audit Unit and compiles an Internal Audit Unit Charter as a guideline for its implementation.

2. Functions & Objectives of the Internal Audit Unit

The function of the Internal Audit Unit for the Company is to assess that the implementation of Corporate Governance is according to Company`s policies and procedures.

The purpose of establishing the Internal Audit Unit is to assist the Board of Commissioners and the Audit Committee in the oversight function of Corporate Governance, outlined by the Company.

3. Structure & Position of the Internal Audit Unit

In the Company`s organizational structure, the Internal Audit Unit position is directly under the President Director and is indirectly responsible to the Chairman of the Company`s Audit Committee.

The structure and position of the Internal Audit Unit are as follows:

a. A Head of Internal Audit leads the Internal Audit Unit;
b. The Head of Internal Audit Unit is appointed by the President Director with the approval of the Board of Commissioners;
c. The President Director can dismiss the Head of the Internal Audit Unit after obtaining approval from the Board of Commissioners if the Head of the Internal Audit Unit does not meet the requirements as an auditor for the Internal Audit Unit or fails or is incapable of carrying out his duties;
d. The Head of the Internal Audit Unit is responsible to the President Director;
e. Auditors who sit in the Internal Audit Unit directly responsible to the Head of the Internal Audit Unit.

4. Duties & Responsibilities of the Internal Audit Unit

a. Develop and implement an Annual Internal Audit plan;
b. Test and evaluate the implementation of internal control and risk management systems following Company policy;
c. To conduct examination and assessment of efficiency and effectiveness in finance, accounting, operations, human resources, marketing, information technology and other activities;
d. Provide suggestions for improvements and objective information about the activities examined at all levels of management;
e. Prepare an audit report and submit the information to the President Director and the Board of Commissioners;
f. Monitor, analyze and report on the implementation of the suggested improvements;
g. Cooperate with the Audit Committee;
h. Develop a program to evaluate the quality of its Internal Audit activities;
i. Perform special investigation if necessary.

5. Internal Audit Unit Authority

a. Access all relevant information about the Company in regards to its duties and functions;
b. Communicating directly with the Board of Directors, Board of Commissioners and Audit Committee as well as members of the Board of Directors, Board of Commissioners, and the Audit Committee;
c. Hold regular and incidental meetings with the Board of Directors, Board of Commissioners, or the Audit Committee;
d. To coordinate with external auditors.

6. Internal Audit Unit Code of Ethics

a. Demonstrate honesty, objectivity, and sincerity in carrying out duties and fulfilling their professional responsibilities;
b. Demonstrate loyalty to the Company and should not be consciously involved in activities that deviate or violate the law;
c. Should not be consciously involved in any action or activity that could discredit the profession or the Company;
d. Refrain from activities that may conflict with the interests of the Company, or activities that can create prejudice, which doubt its ability to carry out its duties and fulfill its professional responsibilities objectively;
e. Should not accept anything in any form from employees, clients, customers, suppliers, or it is reasonably suspected that it could affect their professional judgment;
f. Tasks that are performed are only services that can be completed using their professional competency
g. Making efforts to meet the Internal Audit Professional Standards;
h. Be careful and prudent in using information obtained in carrying out their duties, not abusing confidential information in terms of:
– For personal gain;
– Obtained by breaking the law;
– Which can cause harm to the organization.
i. In reporting the results of their work, they must disclose all essential facts known, namely facts that would otherwise be admitted.:
– Distorting reports on activities under review;
– Cover up any illegal practices
j. Continually improving competence and the effectiveness and quality of the implementation of their duties and must attend continuing professional education.

7. Requirements for Auditors who Sit in the Internal Audit Unit

a. Have integrity and professional behavior; be independent, honest and objective in carrying out their duties;
b. Having knowledge and experience regarding technical auditing and other disciplines relevant to the field of work;
c. Know the laws and regulations in the capital market and other related laws and regulations;
d. Have the ability to interact and communicate both verbally and in writing effectively;
e. Must comply with professional standards issued by the Internal Audit Association;
f. Obliged to comply with the Internal Audit code of ethics;
g. Obliged to maintain the confidentiality of the Company`s information and data related to the implementation of the duties and responsibilities of Internal Audit unless required to be based on laws and regulations or court decisions;
h. Understand the principles of good corporate governance and risk management;
i. Willing to continually increase his knowledge, skills and professional abilities.

8. Prohibition of concurrent duties & positions

a. Internal auditors may not hold other jobs in the Company;
b. Internal auditors may not be involved directly or indirectly in the Company`s operational activities;
c. Internal Auditors may not be involved in other activities of the Company that make the Internal Auditors not independent.

9. Appointment, Replacement & Dismissal of the Head of the Internal Audit Unit

a. The appointment, replacement and dismissal of the Head of the Internal Audit Unit is carried out by the President Director and has the approval of the Board of Commissioners;
b. The appointment, replacement & dismissal of the Head of the Internal Audit Unit must be reported to Bapepam and LK;

10. Closing

The Internal Audit Unit Charter was prepared following Bapepam LK Regulation No. IX.I.7 and a review of the Internal Audit Unit Charter will be carried out if there are new things that need to be added to improve the Company`s Internal Audit Unit which has been established without reducing the rules set by Bapepam LK.

Any changes to the Internal Audit Unit Charter contents must be approved by the Board of Directors and the Board of Commissioners.

Thus this Internal Audit Unit Charter was prepared and must be implemented by all Internal Audit Units with a high sense of responsibility to create excellent and correct Corporate Governance.

Stipulated in Jakarta,

Date:

March 5, 2010