Corporate Governance

PT Kereta Api Indonesia (Persero) is committed to ensuring healthy and sustainable business growth through operational and business management that aligns with the principles of Good Corporate Governance (GCG). The implementation of GCG is an integral part of the AKHLAK Core Values, as stipulated in Surat Edaran Menteri Badan Usaha Milik Negara (BUMN) Nomor SE-7/MBU/07/2020. With operational standards referring to international benchmarks and close relationships with all stakeholders, the Company strives to create long-term value for customers, shareholders, regulators, employees, business partners, and the community. This serves as a manifestation of support for its vision to become the best transportation ecosystem solution for Indonesia.

The implementation of Corporate Governance within the Company is based on applicable laws and regulations, including:

1. Undang-Undang Republik Indonesia Nomor 40 Tahun 2007 tentang Perseroan Terbatas;

2. Undang-Undang Republik Indonesia Nomor 19 Tahun 2003 tentang Badan Usaha Milik Negara (BUMN);

3. Peraturan Menteri BUMN Nomor PER-2/MBU/03/2023 tanggal 24 Maret 2023 tentang Pedoman Tata Kelola Perusahaan dan Kegiatan Penting Perusahaan BUMN;

4. Undang-undang (UU) Nomor 16 Tahun 2025 tentang Perubahan Keempat atas Undang-Undang Nomor 19 Tahun 2003 tentang Badan Usaha Milik Negara.

The implementation of GCG within the Company refers to internationally recognized best practices, which encompass the following standards:

1. Pedoman Umum GCG Indonesia published by Komite Nasional Tata Kelola Perusahaan (KNKG);

2. ASEAN Corporate Governance Scorecard;

3. Corporate governance guidelines regulated in Peraturan dan Surat Edaran Otoritas Jasa Keuangan (OJK);

4. Corporate governance guidelines applicable to SOEs and relevant to KAI's business activities;

5. Environmental, Sustainability, and Governance (ESG) principles.

The Company implements GCG through two main components:

1. GCG Structure, consisting of main organs and supporting organs;

2. GCG Soft Structure, encompassing internal regulations that serve as guidelines in the implementation of GCG.

The Company's GCG Structure consists of main organs and supporting organs for good corporate governance. The main organs include the General Meeting of Shareholders (RUPS), the Board of Commissioners, and the Board of Directors. The supporting organs include the Secretary to the Board of Commissioners, the Corporate Secretary, various committees, and the Internal Audit Unit. The Board of Commissioners and the Board of Directors possess clearly defined authorities and responsibilities in accordance with the Articles of Association and applicable laws and regulations.

Committees supporting the Board of Commissioners are chaired by its members, while committees supporting the Board of Directors are ensured to have no affiliation with the Board of Directors, the Board of Commissioners, or controlling shareholders. These committees assist the Board of Directors in implementing the company's employee performance management system.

The Board of Directors acts as the top-level executive leadership, with the President Director serving as the highest official responsible for managing the Company. The Company has also established policies to manage potential conflicts of interest through Peraturan Dewan Direksi No. PER.U/KC.202/XII/1/KA-2020 tentang Pedoman Tata Kelola Perusahaan yang Baik, which is further elaborated in the Conflict of Interest Management section.

The GCG Soft Structure consists of various internal policies governing the roles of each organ within the governance framework. These include:

1. Anggaran Dasar PT Kereta Api Indonesia (Persero);

2. Board Manual No. 04/CH/KOM/III/2017 and KEP.U/KO.101/III/15/KA-2017 tentang Pedoman Kerja Dewan Komisaris dan Direksi PT Kereta Api Indonesia (Persero);

3. Pedoman Tata Kelola Perusahaan yang Baik as stipulated in Peraturan Dewan Direksi No. PER.U/KC.202/XII/L/KA-2020 tentang Tata Kelola Perusahaan yang Baik;

4. Kode Etik as regulated in Peraturan Dewan Direksi No. PER.U/KC.202/II/1/KA-2022;

5. Pedoman Sistem Pelaporan Pelanggaran (Whistleblowing System) established based on Peraturan Dewan Direksi No. PER.U/KL.104/XI/1/KA-2020;

6. Pedoman Manajemen Risiko based on Peraturan Dewan Direksi No. PER.U/KL.104/I/1/KA-2021 tentang Manajemen Risiko Terintegrasi (Enterprise Risk Management);

7. Pedoman Sistem Informasi Perusahaan as regulated in Keputusan Direksi No. KEP.U/OT.003/IX/4/KA-2011 tentang Tata Kelola TI and Keputusan No. KEP.U/KK.101/VIII/1/KA-2016 tentang Kebijakan dan Prosedur TI;

8. Pedoman Audit Internal as stated in Keputusan Direksi No. KEP.U/PS.106/V/3/KA-2014;

9. Other relevant internal regulations.

In accordance with Peraturan Menteri BUMN Nomor PER-2/MBU/03/2023 tentang Tata Kelola Perusahaan dan Kegiatan Penting Perusahaan as well as Undang-Undang Nomor 1 Tahun 2025 tentang BUMN, the management and supervision of SOEs must be carried out in compliance with Good Corporate Governance principles, one of which is through the execution of a Good Corporate Governance assessment.

The Corporate Governance Assessment of PT Kereta Api Indonesia (Persero) for the year 2024 was conducted based on the assessment indicators stipulated in Peraturan Wakil Kepala BPKP Nomor 05 Tahun 2020 tentang Pedoman Penilaian Tata Kelola Perusahaan Badan Usaha Milik Negara. The assessment for the performance period of January 1 to December 31, 2024, took place from April 15 to May 26, 2025, and was conducted by External Auditors from the Regional Office of BPKP Jawa Barat.

The results demonstrated that the Company achieved a score of 93.590, earning the "Sangat Baik" (Excellent) predicate. This reflects an increase of 0.573 points compared to the 2023 score of 93.017. Overall, all evaluated aspects demonstrated improvement compared to the previous year.