DAFTAR ISI TABLE OF CONTENT

DAFTAR ISI

TABLE OF CONTENT

02 IDENTITAS PERUSAHAAN RESPONSIBILITY 02 • V isi Misi Vision Mission 03. IKHTISAR KEUANGAN FINANCIAL HIGHLIGHTS 03 • R atio Keuangan Financial Ratio 04 • G rafik Graphic 06 LAPORAN DEWAN KOMISARIS BOARD OF COMMISSIONER REPORT 09 13 15 16 20 24

LAPORAN DIREKSI DIRECTOR REPORT • P rofil Per usahaan Company Profile • S tr uktur Organisasi Organizational Structure • P rofil Dewan Komisaris Board of Commissioner Profile • P rofil Direksi Board of Director Profile • S tr uktur Kelompok Usaha Business Group Structure

25 ANALISA & PEMBAHASAN MANAJEMEN ANALYSIST & MANAGEMENT VIEW 30 36 36 40 41

TATA KELOLA PERUSAHAAN GOOD CORPORATE GOVERNANCE • S ekretaris Per usahaan Corporate Secretar y • K omite Audit Audit Committee • S umber Daya Manusia Human Resources • R esiko Usaha Business Risk

42 TANGGUNG JAWAB SOSIAL PERUSAHAAN CORPORATE SOCIAL RESPONSIBILITY 47 LAPORAN KEUANGAN FINANCIAL REPORT

Annual Report PT Bumi Teknokultura Unggul Tbk

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IDENTITAS PERUSAHAAN Company Identity

Nama Perusahaan Company Name : PT Bumi Teknokultura Unggul Tbk. Tipe Perusahaan Company Type : Perseroan Terbatas Limited Liability Companies Tanggal Berdiri Established on : 6 Juni 2001 June 6, 2001 Akta Notaris Rusman, S.H., Notaris pengganti Elliza Asmawel, S.H., No. 12 dan diubah dengan Akta Notaris Elliza Asmawel, S.H., No. 10 tanggal 5 Maret 2002. Akta pendirian tersebut telah disahkan oleh Menteri Kehakiman dan Hak Asasi Manusia Republik Indonesia melalui Surat Keputusan No. C-06880. HT.01.01.TH.2002 tanggal 23 April 2002 dan telah didaftarkan di Kantor Pendaftaran Perusahaan Kota Madya Jakarta Selatan No.880/BH.09.03/V/2002 tanggal 7 Mei 2002, serta telah diumumkan dalam Berita Negara Republik Indonesia No. 80 tambahan No. 9565 tanggal 7 Oktober 2003. Anggaran dasar Perusahaan telah mengalami beberapa kali, terakhir dengan akte notaris dari Desman, S.H., M.Hum., M.M., No 48 tanggal 9 Juni 2015 Notarial Deed Rusman, SH, substitute of Notary Elliza Asmawel, SH, No. 12 and amended by Notarial Deed Elliza Asmawel, SH, No. 10 dated 5 March 2002. The establishment deed was approved by the Minister of Justice and Human Rights of the Republic of Indonesia through Decree No. C-06880. HT.01.01.TH.2002 23 April 2002 and was registered at the Company Registration Office in the Municipality of South Jakarta 880 / BH.09.03 / V / 2002 dated 7 May 2002, and was published in the State Gazette of the Republic of Indonesia No. Additional No. 80 9565 dated 7 October 2003. The Articles of Association has been amended several times, most recently by notarial deed of Desman, SH, M. Hum., M.M., No. 48 dated 9 June 2015 Bidang Usaha : Pembalakan Kayu, Tanaman Hias dan Tanaman Potong fields of bussines: logging, ornamental plants and cut plants Produk Dan Jasa Yang Dihasilkan: Kayu Bulat, Jasa Pembalakan Kayu, Tanaman Hias Product and services : logg, logging service Alamat: Rukan Komplek Permata Senayan Blok E No 38, Jl. Tentara Pelajar - Jakarta Selatan. Tel. : 6221-5300700 Fax. : 6221-53653136. Email : [email protected]. Website : www.btek.co.id located at Rukan Permata Senayan Complex, Block E No. 38 Jl. Tentara Pelajar South Jakarta 12210, while the location of business activities in Jl. Raya Otonom, Pasar Kemis, Cikupa, Tangerang. The Company started doing commercial operations in June 2001 Kode Saham Code shares: BTEK

Visi Misi Vision Mission Visi Vision

Misi Mission

• Memenuhi dan mendukung pelestarian lingkungan dan plasma nutfah dengan membangun serta mengisi industri bibit unggulan dalam mendorong dan menghijaukan kembali pembangunan yang berkelanjutan secara utuh dengan menghasilkan bahan tanaman berkualitas prima dan dapat memberikan peran optimal untuk memperkuat perekonomian nasional.

• Menjadi perusahaan bioteknologi nasional yang mampu memproduksi tanaman unggulan yang berkualitas dan bernilai yang dapat dibutuhkan secara ekonomis dan menguntungkan secara komersial. .

• To meet and support environmental conservation and germplasm by seed industry to build and fill the preeminent in encourag ing and redevelopment of fully sustainable by producing excellent quality plant material and provide an optimal role for strengthening the national economics. • Menjadikan/menciptakan unit-unit pengelolaan kehutanan yang berkelanjutan serta memasok secara berkesinambungan kayukayu berkualitas premium kepada konsumen hilir melalui praktek- praktek manajemen riset dan pengembangan. • To lead a sustainable forestry estate management units and continuously supply the preferred woods to downstream consumers through research and development management practices

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Laporan Tahunan 2015 PT Bumi Teknokultura Unggul Tbk

• Being a national biotechnology company that is able to produce plants of superior quality and value needed to be economically and commercially profitable • Pengembangan unit-unit pengelolaan ke hutanan yang beragam kedalam satu kesatuan pengelolaan kehutanan yang terintegrasi dan berkelanjutan. • Developing multi forest management units into integrated sustainable estates. • Secara terus menerus dan berkesinambungan membangun kekuatan kompetitif dan peluang usaha untuk menjadi pemimpin didalam bidang pembibitan dan kehutanan. • Continuous and sustaining building competitive strengths and business opportunities to become leader in the field of plant breeding and forestry.

Ikhtisar Data Keuangan Financial Highlights

Ratio Keuangan Financial Ratio Laporan Posisi Keuangan

Statement of Financial Positions

(dalam Jutaan Rupiah)

Uraian

(in million of Rupiah)

31 Desember / December 31 2015 2014 2013

Descriptions

OPERASI HASIL USAHA Pendapatan Beban Pokok Penjualan Laba Kotor Laba Operasi Laba (Rugi) Sebelum Pajak Laba (Rugi) Komprehensif

49,116,023

43,386,541

46,980,927

Revenue

-34,551,752

-34,118,317

-42,043,814

Cost of Goods Sole

14,564,272

9,268,225

4,937,113

Gross Profit (Loss)

1,469,601

-1,789,220

-284,489

Income (Loss) from Operation

269,378

-2,931,696

2,247,114

Loss Before Income Tax Benefit

1,108,230

-2,872,769

2,301,480

Total Comprehensive Income (Loss)

Laba (Rugi) Kompehensif tahun berjalan yang diatribusikan kepada - entitas induk - Kepentingan non pengendali Laba (Rugi) persaham

Total Comprehensive Income (Loss) for the year attributable to 1,271,477

-2,291,307

-163,247

-581,462

1

-2.60

2,301,480

Owners of the Parent

2.09

Earning (Loss) pershare

Non controlling interest

POSISI KEUANGAN Aset Lancar

90,851,677

43,802,850

19,600,088

Current Assets

Aset Tidak Lancar

404,538,766

399,243,619

348,813,578

Non-Current Assets

Total Aset

495,390,443

443,046,469

368,413,666

Total Assets

Liabilitas Jangka Pendek

185,468,484

154,586,350

138,984,707

Current Liabilities

Liabilitas Jangka Panjang

230,039,382

209,685,772

147,781,842

Non-Current Liabilities

Total Liabilitas

415,507,866

364,272,122

286,766,549

Total Liabilities

79,882,577

78,774,347

81,647,117

Total Equity

29.65%

21.36%

10.51%

Gross Profit Margin

2.26%

-6.62%

4.90%

Net Profit Margin

48.98%

28.34%

14.10%

Current Ratio

Total Ekuitas RASIO KEUANGAN Margin Laba Kotor Margin Laba Komprehensif Rasio Lancar rasio Total Utang Terhadap Modal (x)

5.20

5.62

4.51

Debt to Equity Ratio (x)

Rasio Total Utang terhadap Aset (x)

0.84

0.82

0.78

Debt to Assets Ratio (x)

Catatan: Data Posisi Keuangan 2013 dan 2014 setelah penyesuaian transisi PSAK 24

Notes: Financial Position Data for 2013 and 2014 After the transition adjustment to PSAK 24


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Grafik Graphic Pendapatan 1. Kayu Bulat 2015

2013

32,919,563,030

44,947,972,036 2014 16,485,256,752

2. Jasa Pembalakan Kayu

2015 14,646,377,915 2014 26,901,284,483

3. Tanaman

2015 2013 2,032,955,000

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1,550,082,431

Laporan Dewan Komisaris Board of Commissioner Report

Para Pemegang Saham dan Pemangku Kepentingan yang Terhormat,

Honorable Shareholders and Stakeholders,

Kondisi ekonomi dunia dalam beberapa tahun terakhir masih dalam tahap pemulihan sejak krisis global beberapa tahun lalu. Dampak krisis tersebut tidak sepenuhnya berpengaruh terhadap perekonomian domestik yang masih stabil dan kondusif. Hal ini menjadi peluang dan keuntungan yang harus diraih oleh Perseroan untuk mencapai kinerja yang maksimal. Merupakan sebuah kebanggaan bagi Perseroan, ketika seluruh pemangku kepentingan terkait mampu merasakan manfaat dan kualitas kehidupan yang lebih baik.

The world economic condition in recent years is still in the recovery stage since the global crisis a few years ago. The impact of the crisis did not fully affect the domestic economy which is still stable and conducive. It is then an opportunity and advantage to be grasped by the Company to achieve maximum performance. It is an honor for the Company, when all stakeholders are able to feel the benefits and better quality of life.

Sepanjang 2015, Dewan Komisaris telah melaksanakan tugas pengawasan terhadap kebijakan, mekanisme pengelolaan dan operasional Perseroan, serta pemberian arahan dan masukan kepada Direksi. Laporan Dewan Komisaris ini berisikan pandangan kami terhadap kinerja Perseroan pada para komite di bawah Dewan Komisaris, prospek usaha serta langkah Perseroan ke depan.

Throughout 2015, the BOC has performed oversight of the policies, mechanism of the management and operation of the Company, as well as provided guidance and advice to the Board of Directors. This BOC's report contains our views on the performance of the Company on the committees under the Board of Commissioners, as well as the business prospects of the Company.


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PENILAIAN ATAS KINERJA DIREKSI Kami bersyukur bahwa Perseroan terus tumbuh secara konsisten dalam beberapa tahun terakhir. Secara umum industri perkayuan kurang mengalami dampak yang signifikan terkait dengan dinamika ekonomi makro, hal ini disebabkan bahwa pemain dalam industri perkayuan relatif sedikit dibandingkan dengan permintaan pasar. Namun bukan berarti industri ini tanpa risiko. Selain faktor cuaca yang kurang dapat diprediksi, persaingan juga semakin ketat, baik dari pemain lokal maupun dari mancanegara.

PERFORMANCE ASSESSMENT OF THE BOARD OF DIRECTORS

We are grateful that the Company continues to grow consistently in recent years. In general, the timber industry experience a less significant impact associated with macro-economic dynamics, it is because that the number of players in the timber industry is relatively small compared with the market demand. But that does not mean the industry is without risk. In addition to weather factor is becoming less predictable, competition is also getting tougher, both from local and overseas players.

Sementara isu lingkungan pun menjadi hal yang harus diperhatikan. Manajemen tetap selalu memperhatikan konsep “Go Green” dalam menjalankan aktivitas Perseroan maupun entitas anak, dan berkomitmen untuk memberikan kontribusi lingkungan yang baik.

In addition, environmental issues has also beco e a matter that must be considered. Management always pay attention to the concept of "Go Green" in running the activities of the Company and its subsidiaries, and is committed to contribute to a better environment.

Dewan Komisaris berpandangan bahwa prospek usaha di bidang bioteknologi pertanian yang disusun dan dilaksanakan oleh Direksi secara garis besar telah selaras dengan rencana, arah dan tujuan Perseroan. Hal ini juga didukung dengan kondisi perekonomian nasional dan perkembangan bisnis yang kondusif.

BOC believes that business prospects in the field of agricultural biotechnology that are formulated and implemented by the Board of Directors generally align with the plans, direction and objectives of the Company. This is also supported by the condition of the national economy and the development of a conducive business.

IMPLEMENTASI TATA KELOLA PERUSAHAAN YANG BAIK

IMPLEMENTATION GOVERNANCE

Bagi kami penerapan prinsip-prinsip GCG sangat penting agar segenap keputusan dilakukan dengan penuh tanggung jawab. Oleh karena itu, sebagai Perusahaan Terbuka, tentunya kami selalu meminta manajemen untuk menempatkan penerapan prinsip-prinsip tersebut secara lebih baik dengan selalu memenuhi ketentuan atau peraturan Perundang-undangan yang berlaku, serta menerapkan sistem operasional yang lebih efektif dan dapat diandalkan dalam penyediaan informasi yang tepat waktu.

For us the implementation of good corporate governance principles is very important and that all decisions should be made in a responsible manner. Therefore, as a public company, of course, we always ask the management to prioritise the implementation of these principles by always complying to the regulatory legislation in force, as well as implementing an operational system that is more effective and reliable in the provision of appropriate and timely information.

Selama ini, kerja sama antara Dewan Komisaris dengan komite-komite yang di bawahnya berlangsung sangat baik, dan tidak terdapat kendala, oleh karenanya Komisaris tetap berkomitmen membina hubungan yang harmonis dengan Direksi dan komite-komite yang berada dibawahnya serta menjalankan sistem komunikasi yang baik dan bersahabat.

During this time, the cooperation between the Board of Commissioners with the committees is going very well with no obstacle, therefore, the Commissioners remain committed to fostering a harmonious relationship with the Board of Directors and committees as well as running a good and friendly communication system.

PENGEMBANGAN SDM

HUMAN RESOURCES DEVELOPMENT

Memiliki SDM yang andal dan berintegritas tinggi sebagai salah satu aset (capital) perusahaan merupakan salah satu faktor utama perkembangan bisnis PT Bumi Teknokultura Unggul Tbk. Kami menginvestasikan waktu dan energi lebih besar guna membentuk sistem human capital yang

Having a reliable human resources with high integrity is one of the assets (capital) of the Company in the development of PT Bumi Teknokultura Unggul Tbk. We invest more time and energy to build a proper system of human capital. Effective and efficient management system will bear

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tepat. Sistem manajemen yang efektif dan efisien akan melahirkan individu-individu yang berkompetensi tinggi untuk ditempatkan pada posisi-posisi strategis. Selain sistem yang terkelola dengan baik, DSN menerapkan program pelatihan SDM yang terintegrasi untuk menghasilkan kinerja prima dan berkesinambungan, sehingga peluang pertumbuhan yang berkelanjutan dapat diraih dengan maksimal.

competent individuals to be placed in strategic positions. In addition to a well-managed system, DSN implements an integrated HR training programs to produce continuous excellent performance, so the chances of sustainable growth can be achieved maximally.

PENILAIAN ATAS KINERJA KOMITE-KOMITE YANG BERADA DIBAWAH DEWAN KOMISARIS

PERFORMANCE ASSESSMENT OF COMMITTEES UNDER THE BOARD COMMISSIONERS

Dalam menjalankan fungsinya, Dewan Komisaris dibantu oleh Komite Audit. Dewan Komisaris berpendapat bahwa Komite Audit telah menjalankan tugas dan kewajibannya dengan baik. Komite Audit telah melaksanakan tugas dan tanggung jawab yang dibebankan sesuai dengan rencana kerja. Selain melaksanakan fungsi utama yang telah berjalan dengan semestinya, Komite Audit juga telah menyusun rencana peningkatan kinerja pada masa mendatang serta menyempurnakan pelaksanaan sistem dan prosedur kerja yang mendukung kinerja Perseroan secara keseluruhan.

In carrying out its functions, the Board of Commissioners is assisted by the Audit Committee. BOC is in the opinion that the Audit Committee has performed their duties and responsibilities well. The Audit Committee has been carrying out the duties and responsibilities imposed in accordance with the work plan. Besides executing the main function which has been running properly, the Audit Committee has also devised a plan to boost performance in the future and to enhance the implementation of system and work procedures that support the Company's overall performance.

TANGGUNG JAWAB SOSIAL PERUSAHAAN

CORPORATE SOCIAL RESPONSIBILITY

Bagi kami, tanggung jawab sosial atau Corporate Social Responsibility (CSR) merupakan bagian yang terintegrasi dalam pelaksanaan strategi dan kebijakan Perseroan. Oleh karena itu, kami senantiasa mendukung Direksi dalam melaksanakan program-program CSR dengan pendekatan pemberdayaan masyarakat dan pertumbuhan yang berkelanjutan.

For us, social responsibility or Corporate Social Responsibility (CSR) is an integral part of the implementation of the strategies and policies of the Company. Therefore, we continue to support the Board of Directors in carrying out CSR programs with community empowerment approach and sustainable growth.

Secara konsisten, kami telah melaksanakan rangkaian program CSR yang berorientasi jangka panjang. Melalui filosofi ini, masyarakat sekitar tidak sekadar menerima bantuan yang hanya memberikan manfaat sesaat, tetapi juga memeroleh pengetahuan dan kesempatan untuk belajar menjadi kelompok manusia mandiri dan produktif, sehingga dapat menciptakan dampak yang positif bagi sesamanya.

Consistently, we have carried out a series of CSR programs that are long-term oriented. Through this philosophy, the community does not just accept the help that benefit only for a moment, but also acquiring the knowledge and opportunity to learn to be independent and productive groups of people, so that they can make a positive impact for others.

Dengan penerapan rangkaian program CSR tersebut, Perseroan telah berhasil menjadikan masyarakat sekitar sebagai mitra yang setara. Perkembangan hubungan kami dengan masyarakat ditunjukkan melalui kegiatan operasional Perseroan positif dan membangun sepanjang 2015.

With the implementation of a series of CSR program, the Company has succeeded in making the local community as equal partners. The development of our relationship with the community through the operations of the Company demonstrated is proven as positive and constructive throughout 2015.


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PERUBAHAN KOMPOSISI DEWAN KOMISARIS Pada 2015, Perseroan tidak melakukan perubahan terhadap susunan anggota Dewan Komisaris.

CHANGES IN COMPOSITION OF THE BOARD OF COMMISSIONERS

In 2015, the Company did not make any changes to the composition of the Board of Commissioners.

PENUTUP

CLOSING

Dewan Komisaris optimis bahwa Perseroan akan mampu terus meningkatkan kinerja dengan terus bekerja keras dan menerapkan prinsip-prinsip GCG secara konsisten. Dewan Komisaris mengamanatkan agar Direksi dan karyawan dapat bekerjasama secara sinergis dengan seluruh pemangku kepentingan guna mempersembahkan kinerja prima.

BOC is optimistic that the Company will be able to continue to improve performance by continuing to work hard and apply the principles of GCG consistently. BOC mandates that the Board of Directors and employees to work in synergy with all stakeholders in order to present excellent performance.

Kami mengucapkan terima kasih kepada Direksi dan segenap karyawan atas kerja keras yang telah ditunjukkan sepanjang 2015. Kepada segenap mitra kerja, kami juga menyampaikan penghargaan yang setinggi-tingginya atas kerjasama yang telah terjalin dengan baik. Terima kasih kami ucapkan kepada semua pemegang saham yang telah memberikan kepercayaannya kepada Perseroan, kepada Direksi atas kinerjanya selama 2015, kepada seluruh karyawan atas dedikasi dan kerja kerasnya, serta kepada rekan bisnis atas dukungannya kepada Perseroan selama ini.

We would like to thank the Board of Directors and all employees for their hard work which has been shown throughout 2015. To all partners, we also express our highest appreciation for the cooperation that has been established. Our thanks to all the shareholders who have placed their confidence in the Company, to the Board of Directors for their performance in 2015, to all employees for their dedication and hard work, as well as to the business partners for their support to the Company over the years.

Semoga Tuhan senantiasa membimbing kita semua. May God continue to guide us all.

Anne Patricia Sutanto Komisaris Utama President Commissioner

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Laporan Direksi

Director Report

Para Pemegang Saham dan Pemangku Kepentingan yang Terhormat,

Honorable Shareholders and Stakeholders,

Pertama-tama kami panjatkan syukur ke hadirat Tuhan Yang Maha Kuasa atas segala karunia dan berkat-Nya sehingga di tengah situasi yang kurang menguntungkan di sepanjang tahun 2015, Perseroan masih dapat mengambil tindakan-tindakan strategis guna mengembalikan trend pendapatan ke arah yang positif.

First of all we give thanks to the presence of the Almighty God for all His gifts and blessings so that in the middle of the unfavorable situation in year 2015, the Company was still able to take measures to restore the strategic revenue trend in a positive direction.

Perubahan dan dinamika bisnis di dalam dan luar negeri merupakan salah satu tantangan kami dalam meningkatkan dan mempertahankan pertumbuhan Perseroan. Kami senantiasa menyempurnakan kinerja dengan menerapkan berbagai aspek penting seperti pengembangan Sumber Daya Manusia (SDM), program berkelanjutan dalam tanggung jawab sosial perusahaan, serta program lainnya guna menapak kemajuan yang berarti dan meraih kepercayaan seluruh pemangku kepentingan.

Changes and business dynamics locally and abroad is one of our challenges in improving and maintaining the Company's growth. We continuously improve performance by implementing various important aspects such as the development of Human Resources (HR), an ongoing program in corporate social responsibility, as well as other programs in order to tread the significant progress and gain the trust of all stakeholders.

Tahun 2015 diwarnai dengan berbagai kebijakan strategis yang ditujukan untuk menciptakan pertumbuhan berkelanjutan dalam industri berbasis sumber daya alam. Kinerja Perseroan selama 2015 masih mengalami penurunan bila dibandingkan tahun sebelumnya. Hal ini

2015 was colored with various strategic policies aimed at creating sustainable growth in the industry based on natural resources. The Company's performance during 2015 was lower when compared to the previous year. This was due to the unfavorable weather conditions as well as


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disebabkan kondisi cuaca yang kurang mendukung serta masalah sosial-budaya lokal yang sering dihadapi di sekitar lokasi operasional entitas anak, antara lain penentuan ganti rugi masyarakat.

local socio-cultural problems that were often encountered in the vicinity of the operating subsidiaries, including the determination of the community compensation.

Masalah tersebut cukup pelik dan umumnya membutuhkan waktu untuk menyelesaikannya. Namun Perseroan tetap mengupayakan mencapai kinerja yang lebih baik dari tahun sebelumnya melalui beberapa kebijakan strategis yang berhasil ditempuh.

The problem is quite complicated and usually takes time to complete. However, the Company continued to pursue better performance than the previous year through several successful strategic policy.

ANALISIS ATAS KINERJA

PERFORMANCE ANALYSIS

Kebijakan Strategis dan Pencapaian 2015

Strategic Policy and Achievements in 2015

Kami mengawali langkah pada 2015 dengan segala tantangan yang ada. Dengan mengantisipasi peluang yang ada, kami mempersiapkan strategi untuk mencapai kesempurnaan dalam kinerja operasional, meningkatkan dan mempertajam kemampuan SDM, dan menjalin keharmonisan dengan masyarakat sekitar. Kebijakankebijakan tersebut antara lain upaya mempercepat waktu tempuh dengan melalui pengangkutan air, agar target Perseroan bisa tercapai secara optimal.

We started to step into 2015 with all the challenges. By anticipating the opportunities that exist, we prepared a strategy to achieve excellence in operational performance, increase and improve the ability of human resources, and establish harmony with the surrounding community. Those policies include efforts to speed up the travel time for the transport of water, so that the Company’s target can be achieved optimally.

ANALISIS PROSPEK USAHA

BUSINESS PROSPECTS ANALYSIS

Manajemen berkeyakinan bahwa kinerja Perseroan akan meningkat pada masa mendatang berkat kebijakan tersebut, ditambah dengan upaya Manajemen akan secara maksimal untuk meningkatkan kinerja Perseroan maupun entitas Perusahaan Anak.

Management believes that the Company's performance will increase in the future thanks to the policy, coupled with the management efforts to improve the performance of the Company and the Subsidiary entities.

Ke depannya, Perseroan telah merencanakan langkahlangkah antisipasinya dengan mengkaji kemungkinan untuk membuat jalan yang lebih tahan terhadap cuaca. Untuk masalah sosial Perseroan akan menugaskan staf khusus untuk melakukan pendekatan sosial kepada masyarakat sekitar. Hal ini diintegrasikan dengan kegiatan Tanggung Jawab Sosial Perusahaan (CSR).

Going forward, the Company has planned measures anticipated by studying the possibility of making roads more resistant to weather. For the social problems, the Company will assign dedicated staff to conduct a social approach to the surrounding community. It is integrated with the activities of Corporate Social Responsibility (CSR).

IMPLEMENTASI TATA KELOLA PERUSAHAAN YANG BAIK

IMPLEMENTATION GOVERNANCE

Kami telah menerapkan dan mengembangkan prinsip tata kelola yang selaras dengan praktik-praktik terbaik secara berkesinambungan dan konsisten. Penerapan tata kelola di lingkungan bisnis kami tidak hanya memberikan perlindungan yang memadai dan perlakuan yang adil kepada para pemegang saham dan pemangku kepentingan lainnya, namun lebih dari itu, mendorong kami untuk menciptakan nilai tambah bagi para pemangku kepentingan secara maksimal.

We have implemented and developed the principles of good governance in line with best practices continuously and consistently. The application of good governance in our business environment not only provides adequate protection and fair treatment to shareholders and other stakeholders, but also more than that, encourages us to create added value for the stakeholders to the fullest.

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Pemegang saham, Dewan Komisaris, Direksi, serta segenap karyawan berkomitmen untuk mengimplementasikan standar yang tinggi dalam penerapan prinsip-prinsip tata kelola. Prinsip- prinsip tersebut menjadi referensi Direksi dalam mengambil keputusan yang bertanggung jawab, menghindari benturan kepentingan, mengoptimalisasi kinerja, dan meningkatkan akuntabilitas.

Shareholders, the Board of Commissioners, Board of Directors, and all employees are committed to implementing high standards in the application of the principles of good governance. These principles serve as a reference for the Directors in taking responsible decisions, avoid conflicts of interest, optimize performance, and increase accountability.

Dapat kami sampaikan bahwa wujud implementasi GCG telah dilakukan sepanjang 2015, antara lain dengan melakukan penyempurnaan kelengkapan perangkat Pedoman Penerapan GCG, sosialisasi pedoman GCG dan budaya Perseroan, penyesuaian terus menerus terhadap standard operating procedure yang jelas dan transparan; baik untuk bidang operasional, non-operasional maupun bidang Sumber Daya Manusia.

We can say that the form of the GCG implementation that has been done throughout 2015, includes, perfecting the completeness of the Guidelines for the Application of GCG, GCG socialization guidelines and corporate culture, continuous adjustment of the standard operating procedure that is clear and transparent; good for the field operational, non-operational or field of Human Resources.

TANGGUNG JAWAB SOSIAL PERUSAHAAN

CORPORATE SOCIAL RESPONSIBILITY

Bagi kami, dampak positif keberadaan Perseroan secara keseluruhan haruslah dirasakan oleh seluruh masyarakat. Kami menyadari bahwa kesuksesan Perseroan tidak hanya ditentukan oleh kinerja manajemen dan operasional semata, melainkan juga dukungan komunitas masyarakat sekitar.

For us, the positive impact of the Company's overall presence should be felt by the entire community. We realize that success is not only determined by the Company's management and operational performance alone, but also the support of surrounding communities.

Tanggung jawab sosial perusahaan atau Corporate Social Responsibility (CSR) merupakan komitmen Perseroan dalam memberikan kontribusi kepada masyarakat sekitar dalam bidang lingkungan, sosial kemasyarakatan, keselamatan dan kesehatan kerja, serta tanggung jawab kepada konsumen. Program CSR Perseroan menjadi hubungan simbiosis yang harmonis dalam keseharian kami berinteraksi dengan masyarakat sekitar.

Corporate Social Responsibility (CSR) is the Company's commitment to contribute to the local community in the areas of environmental, social, occupational safety and health, as well as consumer responsibility. The Company's CSR program has become a harmonious symbiotic relationship with the surrounding community in our daily interaction.

Program CSR Perseroan umumnya diterjemahkan ke dalam dua hal. Pertama adalah pemberian bantuan (charity) dan yang kedua adalah berkelanjutan (sustainability). Dalam konteks ini, kami menjatuhkan pilihan pada pembangunan berkelanjutan sebagai orientasi, cara berpikir, serta panduan dalam menyusun program-program CSR Perseroan.

The company's CSR program generally translates into two things. The first is the provision of assistance (charity) and the second is sustainability. In this context, we settled on sustainable development as an orientation, a way of thinking, as well as guidance in preparing the Company's CSR programs.

PERUBAHAN KOMPOSISI DIREKSI

CHANGES IN COMPOSITION OF THE BOARD OF DIRECTORS

Pada 2015, Perseroan tidak melakukan perubahan terhadap susunan anggota Direksi.

In 2015, the Company did not make any change to the composition of the Board of Directors.


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PENUTUP

CLOSING

Direksi mengucapkan terima kasih dan apresiasi yang tinggi kepada Dewan Komisaris atas segala arahan dan masukan yang diberikan. Penghargaan yang sama juga kami sampaikan kepada pemegang saham dan mitra kerja atas dukungan, kepercayaan dan kerjasamanya yang telah terjalin dengan baik selama ini. Direksi juga menyampaikan terima kasih dan penghargaan kepada seluruh karyawan yang telah berkarya dengan kecintaan dan dedikasi dalam melaksanakan tugas dan tanggung jawab masing-masing guna mewujudkan visi, misi, dan target perusahaan secara bahu-membahu tanpa kenal lelah.

The Board of Directors would like to thank and give the highest appreciation to the Board of Commissioners for any given direction and feedback. The same appreciation also goes to our shareholders and business partners for their support, trust and cooperation so far. Directors would also like to express their thanks and appreciation to all employees who have worked with love and dedication in carrying out their duties and responsibilities in order to realize the vision, mission, and objectives shoulder to shoulder tirelessly.

Ucapan terima kasih tak lupa kami sampaikan kepada seluruh pemangku kepentingan dan segenap pihak yang tidak dapat kami sebutkan satu persatu, yang senantiasa menjalin kerjasama terbaik sehingga Perseroan dapat mencapai berbagai target peningkatan usaha dan pertumbuhan kerja secara berkelanjutan.

We would also like to convey our acknowledgement to all stakeholders and all parties concerned that we can not mention one by one, who continuously foster the best cooperation so that the Company can achieve a variety of business improvement targets and employment growth in a sustainable manner.

Semoga Tuhan Yang Maha Kuasa senantiasa memberkati kita semua. May God Almighty continue to bless us all.

Ari Sutanto Direktur Utama President Director

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Profil Perusahaan

Company Profil

PROFIL SINGKAT

BRIEF PROFILE

PT Bumi Teknokultura Unggul Tbk. (“Perseroan”) berdiri tanggal 6 Juni 2001 berdasarkan Akta Notaris Rusman, S.H., Notaris pengganti Elliza Asmawel, S.H., No. 12 dan diubah dengan Akta Notaris Elliza Asmawel, S.H., No. 10 tanggal 5 Maret 2002. Akta pendirian tersebut telah disahkan oleh Menteri Kehakiman dan Hak Asasi Manusia Republik Indonesia melalui Surat Keputusan No. C-06880. HT.01.01. TH.2002 tanggal 23 April 2002 dan telah didaftarkan di Kantor Pendaftaran Perusahaan Kota Madya Jakarta Selatan No.880/ BH.09.03/V/2002 tanggal 7 Mei 2002, serta telah diumumkan dalam Berita Negara Republik Indonesia No. 80 tambahan No. 9565 tanggal 7 Oktober 2003.

PT Bumi Teknokultura Unggul Tbk. (The "Company") was established on 6 June 2001 based on Notarial Deed Rusman, SH, substitute of Notary Elliza Asmawel, SH, No. 12 and amended by Notarial Deed Elliza Asmawel, SH, No. 10 dated 5 March 2002. The establishment deed was approved by the Minister of Justice and Human Rights of the Republic of Indonesia through Decree No. C-06880. HT.01.01.TH.2002 23 April 2002 and was registered at the Company Registration Office in the Municipality of South Jakarta 880 / BH.09.03 / V / 2002 dated 7 May 2002, and was published in the State Gazette of the Republic of Indonesia No. Additional No. 80 9565 dated 7 October 2003.

Anggaran dasar Perusahaan telah mengalami beberapa kali, terakhir dengan akte notaris dari Desman, S.H., M.Hum., M.M., No 48 ttanggal 9 Junii 2015 sehubungan dengan perubahan seluruh anggaran dasar dalam rangka memenuhi ketentuan Otoritas Jasa Keuangan (OJK). Akta tersebut telah disahkan sesuai dengan keputusan Menteri Hukum dan Hak Asasi Manusia Republik Indonesia dengan Surat Keputusan No.AHU-0938900.AH.01.02 Tahun 2015 tentang Persetujuan Perubahan Anggaran Dasar Perusahaan.

The Articles of Association has been amended several times, most recently by notarial deed of Desman, SH, M. Hum., M.M., No. 48 dated 9 June 2015 with respect to changes in the entire articles of association in order to comply with the Financial Services Authority (FSA). This amendment has been adopted in accordance with the decision of the Minister of Justice and Human Rights Republic of Indonesia with Decree No. AHU-0938900.AH.01.02 2015 regarding the approval of amendments of the Company.

Berdasarkan pasal 3 Anggaran Dasar Perseroan, ruang lingkup kegiatan Perusahaan adalah bergerak dalam bidang bioteknologi pertanian. Hak Perusahaan Hutan (HPH), Hutan Tanaman Industri (HTI) dan Perdagangan. Kantor pusat Perusahaan beralamat di Rukan Komplek Permata Senayan,Blok E No. 38 Jl. Tentara Pelajar Jakarta Selatan 12210,sedangkan lokasi kegiatan usaha di Jl. Raya Otonom, Pasar Kemis, Cikupa, Tangerang.Perusahaan mulai melakukan kegiatan komersialnya pada bulan Juni 2001.

According to Article 3 of the Articles of Association, the scope of activities of the Company is engaged in agricultural biotechnology, Forest Management Rights (HPH), Planted Forest Industries (HTI) and Trade. Its head office is located at Rukan Permata Senayan Complex, Block E No. 38 Jl. Tentara Pelajar South Jakarta 12210, while the location of business activities in Jl. Raya Otonom, Pasar Kemis, Cikupa, Tangerang. The Company started doing commercial operations in June 2001.

Kegiatan usaha awal Perseroan sebagai perusahaan yang bergerak dalam bidang bio teknologi pertanian, saat ini fokus kegiatan utama Perseroan adalah pembibitan baik untuk tanaman kehutanan, tanaman pangan, tanaman obat-obatan, tanaman hias tropis, pembalakan kayu (HPH), serta perdagangan kayu bulat (log)

The Company’s earliest business activity is in the field of bio-technology of agriculture, whereas the current main activities of the Company are nursery for forestry plants, food crops, medicinal plants, tropical ornamental plants, logging (HPH), as well as the trading of logs.

Ditahun 2015 Perseroan tetap melakukan pengembangan usaha di bidang kehutanan dengan merencanakan mengambil-alih (akuisisi) Perusahaan-Perusahaan yang miliki ijin pengusahaan hutan, ijin Industri Kayu Lapis dan ijin Hutan Tanaman Industri (Forestry Estate).

In 2015 the Company continued business development in the forestry sector with planned acquisition of companies that have forest management license, Industrial Plywood license and Industrial Forestry Estate license.

Perseroan berupaya menjadi yang terbaik dalam mengelola kawasan hutan secara berkelanjutan melalui praktik manajemen pengembangan dan penelitian. Untuk mencapai tujuan ini, Perusahaan memiliki misi untuk mengembangkan unit pengelolaan multi forest menjadi terintegrasi, meningkatkan hasil panen dari hutan dan perkebunan melalui penelitian dan pengembangan dan penerapan teknik pengelolaan hutan dan industri kayu, praktik kehutanan dan manufaktur yang bertanggung jawab secara berkelanjutan dan seimbang.

The Company strives to be the best at managing forests in a sustainable manner through the development of management practices and research. To achieve this goal, the Company has a mission to develop multi forest management units into an integrated, increasing yields from forests and plantations through research and development and application of techniques of forest and timber industry management, forestry and manufacturing practices that are responsible sustainable and balanced.


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Perseroan juga terus berupaya memberikan pasokan yang reliable bagi para konsumen dengan etika dan manajemen terbaik, serta terus membangun kekuatan kompetitif dan peluang bisnis untuk menjadi unit pengelolaan hutan terkemuka.

The Company also continues to provide reliable supplies to the consumers with the best ethics and management, as well as continues to build its competitive strengths and business opportunities to be the leading forest management unit.

Kesejahteraan karyawan menjadi perhatian utama, dari standar keselamatan kerja dan penyediaan fasilitas kesehatan hingga pelatihan kepemimpinan, manajemen, administrasi dan ketrampilan teknik, yang diselenggarakan di dalam maupun di luar perusahaan.

Employee welfare is the Company’s main priority, from safety standards and provision of health facilities to leadership training, management, administrative and technical skills, which can be held inside and outside the Company.

Kantor pusat Perseroan beralamat di Rukan Komplek Permata Senayan, Blok E No. 38 Jl. Tentara Pelajar Jakarta Selatan 12210, sedangkan lokasi kegiatan usaha di Jl. Raya Otonom, Pasar Kemis, Cikupa, Tangerang dan di Papua Barat.

The Company's head office is located at Rukan Permata Senayan Complex, Block E No. 38 Jl. Tentara Pelajar South Jakarta 12210, while the location of business activities in Jl. Raya Otonom, Pasar Kemis, Cikupa, Tangerang and West Papua.

BIDANG USAHA

LINE OF BUSINESS

Perseroan bergerak di bidang bioteknologi pertanian, Hak Pengusahaan Hutan (HPH), Hutan Tanaman Industri (HTI) dan Perdagangan. Perusahaan fokus di sektor pertanian bioteknologi khususnya kayu dan juga mendukung pelestarian bibit unggulan. Berikut bidang usaha, produk dan jasa yang dihasilkan oleh Perusahaan.

The Company is engaged in agricultural biotechnology, Forest Management Rights (HPH), Planted Forest Industries (HTI) and Trade. The Company focuses on the agricultural biotechnology sector, especially woods and also supporting the preservation of quality seed industry. The following list the areas of businesses, products and services produced by the Company.

HPH (Hak Pengusahaan Hutan)

Forest Consesion Right (HPH)

Perusahaan tercatat sebagai pemasok kayu gelondongan berkualitas tinggi dan menguasai pasar lokal. Dengan memiliki izin Usaha Pemanfaatan Hasil Hutan Kayu dalam Hutan Alam (IUPHHK-HA), Perusahaan selalu berkomitmen memelihara lingkungan serta kekayaan alam, khususnya hutan, secara lestari dan berkelanjutan agar tidak memberikan efek negatif pada alam.

The Company is listed as a supplier of high-quality timber and dominates the local market. By having license in Timber Forest Product Utilization in Natural Forest (IUPHHK-HA), the Company has always been committed to preserve the environment and natural resources, especially forests, conservation and sustainable manner so that it brings no negative effect on nature.

Jasa Pembalakan Kayu

Logging Services

Selain mengolah kayu untuk kepentingan sendiri, Perusahaan juga menawarkan Jasa Pembalakan Kayu kepada perusahaan lain yang telah menjalin kerjasama secara resmi dan diawasi pelaksanaannya oleh pemerintah.

In addition to processing wood for its own sake, the Company also offers Logging services to other companies that have cooperated formally and its implementation is supervised by the government.

Jasa Pengangkutan Kayu

Freight Wood

Saat ini Perusahaan juga bergerak di bidang Jasa Pengangkutan Kayu untuk memberikan kemudahan bagi pihak-pihak yang juga bergerak di bidang pengolahan kayu.

Currently the Company is also engaged in the Wood Transportation Services to provide convenience for the parties who are also engaged in timber processing.

Pembibitan tanaman

Plant Nursery

Perusahaan saat ini memiliki usaha nursery atau pembibitan tanaman hias potong yang mempunya nilai ekonomi tinggi. Didukung pengembangan berbasis bioteknologi, Perusahaan dapat menghasilkan tanaman unggulan yang berkualitas dan bernilai yang dapat dibutuhkan secara ekonomis dan menguntungkan secara komersial.

The Company also currently run nursery or ornamental cut plant nurseries that have the higher economic value. Supported by development of biotechnology-based, the Company can produce superior plants of good quality and value, economically and commercially profitable.

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Struktur Organisasi Organizational Structure


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Profil Dewan Komisaris Board of Commissioner Profile

Anne Patricia Sutanto Komisaris Utama President Commissioner

Warga negara Indonesia, lahir di Surakarta 1972. Beliau diangkat sebagai Komisaris Utama Perseroan berdasarkan hasil RUPS tanggal 12 Juli 2013.

Indonesian citizen, born in Surakarta, 1972. She was appointed as President Commissioner of the Company based on results of Annual General Meeting on 12 July 2013.

Menyelesaikan pendidikan Master of Business Administration (MBA) di Loyola Marymount University, Los Angeles, USA pada tahun 1994. Beliau berpengalaman di bidang produk-produk kehutanan, pembibitan dan tanaman, perdagangan, garment, kimia dan lain-lain.

Graduated with a Master of Business Administration (MBA) at Loyola Marymount University, Los Angeles, USA in 1994. She is experienced in the field of forestry products, nurseries and crops, trade, textile, chemicals and others.

Beliau hanya mempunyai hubungan keluarga dengan anggota Direksi dan anggota Dewan Komisaris.

She only has a family relationship with members of the Board of Directors and Board of Commissioners.

Riwayat Pekerjaan :

Employment history :

1995 - 1996 : Pengembangan Bisnis PT Kayu Lapis Indonesia

1995 - 1996 : Business Development PT Kayu Lapis Indonesia

1996 - 1997 : Asisten Direktur Keuangan PT Batik Keris

1996 - 1997 : Assistant Finance Director of PT Batik Keris

1997 -2009 : Direktur PT Pan Brothers Tbk

1997 - 2009: Director of PT Pan Brothers Tbk

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1997 - 2010 : Komisaris Utama PT Pan Brothers Tbk

1997 - 2010 : President Commissioner of PT Pan Brothers Tbk

1998 - 2004 : Direktur PT Multiyasa Abadi Sentosa

1998 - 2004: Director of PT Multiyasa Abadi Sentosa

2013 - 2015 : Komisaris Utama PT Andira Agro

2013 - 2015 President Commissioner of PT Andira Agro

2014 - 2015 : Komisaris PT Golden Harvest Cocoa Indonesia

2014 - 2015 Commissioner of PT Golden Harvest Cocoa Indonesia

2002 - Sekarang : Direktur Utama PT Plymilindo Perdana

2002 - Present: Director of PT Plymilindo Perdana

2004 - Sekarang : Direktur PT Homeware International Indonesia

2004 - Present: Director of PT Homeware International Indonesia

2006 - Sekarang : Direktur Utama PT Indo Vener Utama

2006 - Present: Director of PT Indo Veneer Utama

2008 - Sekarang : Direktur PT Nine Square Indonesia

2008 - Present: Director of PT Nine Square Indonesia

2010 - Sekarang : Direktur Utama PT Pancaprima Eka Brothers

2010 - Present: President Director of PT Pancaprima Eka Brothers

2010 - Sekarang : Wakil Direktur Utama PT Pan Brothers Tbk

2010 - Present: Vice Director of PT Pan Brothers Tbk,

2012 - Sekarang : Komisaris Utama PT Bumi Teknokultura Unggul Tbk

2012 - Present: President Commissioner of PT Bumi Teknokultura Unggul

2013 - Sekarang : Komisaris Utama PT Meta Epsi

2013 - Present: President Commissioner of PT Meta Epsi


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Yenny Sutanto Komisaris

Commissioner

Beliau warga negara Indonesia, lahir di Surakarta 1975. Beliau diangkat sebagai Komisaris Perseroan berdasarkan hasil RUPS tanggal 12 Juli 2013. Pendidikan Master of Business Administration (Finance) diperolehnya dari Golden Gate University, San Francisco, California, USA pada tahun 1996. mempunyai pengalaman di bidang kehutanan perdagangan, keuangan, dan lain-lain.

She is an Indonesian citizen, born in Surakarta, 1975. She was appointed as Commissioner of the Company based on results of Annual General Meeting on 12 July 2013. She has a Master of Business Administration (Finance) from Golden Gate University, San Francisco, California, USA in 1996.

Beliau tidak mempunyai hubungan afiliasi dengan Pemegang Saham Utama, hanya mempunyai hubungan keluarga dengan anggota Direksi dan anggota Dewan Komisaris.

She is experienced in the forestry trade, finance, and others. She is not affiliated with Major Shareholder, just family ties with members of the Board of Directors and Board of Commissioners.

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Gunawan Angkawibawa Komisaris Independen

Independent Commissioner

Beliau warga negara Indonesia, lahir di Surakarta 1975. Beliau diangkat sebagai Komisaris Independen Perseroan berdasarkan hasil RUPS tanggal 12 Juli 2013. Pendidikan Master of Business Administration (Finance) diperolehnya dari Golden Gate University, San Francisco, California, USA pada tahun 1996. Mempunyai pengalaman di bidang kehutanan perdagangan, keuangan, dan lain-lain.

He serves as Independent Commissioner since the Annual General Meeting on 12 July 2013. His work experience includes as a Director of PT Delta Makmur, Tbk (Property). He graduated from Trisakti University majoring in Engineering in 1998 and University of Indonesia majoring in Economics in 2001, Master of Management from Prasetya Mulya School of Management Indonesia. He is experiencedd in various fields of business management, property and real estate.


He is not affiliated with Major Shareholder, and has no family relationship with members of the Board of Directors and Board of Commissioners.


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Profil Direksi

Board of Director Profile

Ari Sutanto

Direktur Utama

PRESIDENT DIRECTOR

Warga Negara Indonesia, beliau lahir di Jakarta pada 1974. Diangkat sebagai Direktur Utama Perseroan berdasarkan keputusan RUPS pada tanggal 27 Juni 2012 Gelar Bachelor of Science jurusan Ekonomi diperolehnya dari University of Southern California, Los Angeles, California, USA pada tahun 1996. Beliau berpengalaman dalam pengelolaan perusahaan HPH, perdagangan, dan lain-lain.

Indonesian citizen, he was born in Jakarta in 1974. He was appointed as Director of the Company based on the decision of the AGM on 12 July 2013. He holds a Bachelor of Science in Economics from the University of Southern California, Los Angeles, California, USA in 1996. He is experienced in the management of logging companies, trading, and others.


He is not affiliated with Major Shareholder, just family ties with members of the Board of Directors and Board of Commissioners.

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Doddy Sutanto Direktur

DIRECTOR

Warga Negara Indonesia, beliau lahir di Surakarta pada tahun 1981. Diangkat sebagai Direktur Perseroan berdasarkan keputusan RUPS pada tanggal 27 Juni 2012. Gelar Master of Business Administration di Thames Valley University, London, United Kingdom diperolehnya pada pada tahun 2006, mempunyai pengalaman dalam pengelolaan perusahaan HPH, perdagangan dan lain-lain.

Indonesian citizen, he was born in Surakarta in 1981. Appointed as a Director of the Company based on the decision of the AGM on 12 July 2013. He holds a Master of Business Administration from Thames Valley University, London, United Kingdom in 2006. He is experienced in the management of the company HPH, trade and others.


He is not affiliated with Major Shareholder, just family ties with members of the Board of Directors and Board of Commissioners.


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Kim Byeong Su Direktur DIRECTOR

Berkewarganegaraan asing, beliau lahir di Korea 1948. Beliau diangkat sebagai Direktur Perseroan berdasarkan RUPS pada tanggal 27 Juni 2012.

Foreign national, he was born in Korea, 1948. He was appointed as Director by the AGM on 12 July 2013.

Beliau merupakan lulusan dari College of Forestry Kangwon National University 1968, sarjana muda di bidang kehutanan 1975 dan memiliki banyak pengalaman kerja pada perusahaan forestry sejak 1978 sampai saat ini, pengalaman kerja pada berbagai bidang usaha.

He is a graduate from College of Forestry Kangwon National University in 1968, holds a bachelor degree in forestry in 1975 and has a lot of experience working on a forestry company from 1978 until present, as well as work experience in various fields of business.

Beliau tidak mempunyai hubungan afiliasi dengan Pemegang Saham Utama, tidak mempunyai hubungan keluarga dengan anggota Direksi dan anggota Dewan Komisaris.

He is not affiliated with Major Shareholder, has no family relationship with members of the Board of Directors and Board of Commissioners.

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Naning Wahyuningsih Direktur

DIRECTOR

Beliau warga negara Indonesia, lahir di Jakarta 1973. Diangkat sebagai Direktur Perseroan berdasarkan keputusan RUPS pada tanggal 27 Juni 2012. Pernah bekerja sebagai Manajer Analis R & D di PT Fitotek Unggul (1993 - 2000), berpengalaman di bidang pembibitan, kehutanan dan lainnya.

She is an Indonesian citizen, born in Jakarta, 1973. Appointed as a Director of the Company based on the decision of the AGM on 12 July 2013. She worked as an R & D Analyst Manager at PT Fitotek Unggul (1993-2000), and is experienced in the field of breeding, forestry and others.

Beliau tidak mempunyai hubungan afiliasi dengan Pemegang Saham Utama, tidak mempunyai hubungan keluarga dengan anggota Direksi dan anggota Dewan Komisaris.

She is not affiliated with Major Shareholder, has no family relationship with members of the Board of Directors and Board of Commissioners.


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Struktur Kelompok Usaha Business Group Structure

PT ASABRI (Persero)

Edy Suwarno Al Jab L Sing

18.13%

Masyarakat < 5%

5.53%

76.34%

PT Bumi Teknokultura Unggul Tbk

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80.00%

90.00%

PT Bangun Kayu Irian

PT Mitra Pembangunan Global


Analisis dan Pembahasan Manajemen Management Discussion and Analysis

TINJAUAN UMUM

GENERAL REVIEW

Berdasarkan data Badan Pusat Statistik (BPS), perekonomian Indonesia pada 2015 tumbuh sebesar 4,74%. Angka ini meleset dari target yang telah ditetapkan di Anggaran Pendapatan dan Belanja Negara Perubahan (APBN-P) tahun lalu sebesar 5,7%. Melambatnya pertumbuhan ekonomi ini dipicu oleh lesunya perekonomian global, termasuk negara mitra dagang Indonesia dan pelemahan harga komoditas.

Based on data from the Central Statistics Agency (BPS), Indonesia's economy in 2015 grew by 4.74%. This figure missed the target set in the State Budget Amendment (APBN-P) last year which amounted to 5.7%. The economic slowdown was triggered by the global economic slowdown, including trading partner countries of Indonesia and weakening commodity prices.

Meski begitu, kondisi ekonomi Indonesia diperkirakan akan terus membaik pada tahun-tahun kedepan. Menurut Direktur Departemen Komunikasi Bank Indonesia (BI) Arbonas Hutabarat, pertumbuhan pada 2016 didorong oleh stimulus fiskal terutama pembangunan proyek infrastruktur dan konsumsi masih kuat. BI memprediksi pertumbuhan ekonomi Indonesia berada di kisaran 5,25,6% di tahun 2016.

Even so, the Indonesian economy is expected to continue to improve in the next few years. According to the Director of Department of Communications Bank Indonesia (BI) Arbonas Hutabarat, growth in 2016 will be driven by the fiscal stimulus mainly infrastructure projects and consumption that are still going strong. Bank Indonesia predicts economic growth will be in the range of 5.2 to 5.6% in 2016.

Selain itu, pemanfaatan ruang pelonggaran moneter secara terukur oleh Bank Indomesia dapat memperkuat momentum pertumbuhan ekonomi ke depan. Pada Januari 2016, BI telah menurunkan 25 basis poin suku bunga acuannya menjadi 7,25%. BI berharap investasi dapat meningkat seiring implementasi paket deregulasi oleh pemerintah yang akan mendorong realisasi investasi dan stabiltas makroekonomi.

In addition, the measuring of monetary easing space utilization by Bank Indomesia can strengthen the momentum of economic growth in the future. In January 2016, Bank Indonesia has lowered 25 basis points benchmark interest rate to 7.25%. BI expects investment to increase along with the implementation of deregulation package by the government that would promote the realization of the investment and the stability of macroeconomic.

TINJAUAN INDUSTRI

INDUSTRY REVIEW

Tahun 2015 menjadi salah satu tahun yang berat bagi Perseroan. Sejumlah isu nasional terkait industri kayu yang mengalami penurunan harga akibat adanya illegal logging dan masuknya kayu impor. Seperti dikutip dari berita Tempo.Co (17/2/2015) jumlah kayu ilegal yang dikonsumsi industri mencapai 30 persen. Selain merugikan negara hingga Rp 55 Trilun, pelaku industri kayu resmi pun mengalami hal serupa.

2015 has become one of the toughest year for the Company. A number of national issues related to timber industry experienced a decrease due to illegal logging and the influx of imported wood. As quoted from the news Tempo.Co (17/02/2015) the amount of illegal timber consumed by the industry reached 30 percent. In addition to costing the state up to Rp 55 trillion, the legal timber industry has also experienced similar things.

Meski begitu, Perseroan tetap dapat melanjutkan tren postif penjualan kayu log atau kayu bulat yang peminatnya sangat besar. Menurut data Koalisi dan Forest Trends penggunaan kayu dalam negeri meningkat hingga 59 persen di tahun 2015. Beberapa industri yang membutuhkan pasokan kayu adalah industri kayu dan pulp serta industri mebel.

Even so, the Company still manage to continue the positive trend in sales of logs or roundwood whose demand is very huge. According to data from the Coalition and Forest Trends the usage of woods in the country increased by 59 percent in 2015. Some of the industries that need supply of wood includes the wood and pulp industry and the furniture industry.

Pasar utama penjualan kayu log Perseroan adalah perusahaan furnitur lokal yang tersebar di seluruh Indonesia. Jenis kayu yang diproduksi dan dipasarkan tersebut beragam seperti meranti dan merbau. Kedua jenis kayu tersebut terkenal dengan kekerasannya dan sering dimanafatkan untuk konstruksi berat seperti balok-balok, tiang dan bantalan, di bangunan rumah maupun jembatan.

The Company’s main target market for sale of logs are the local furniture companies throughout Indonesia. The type of woods produced and marketed are diverse including meranti and merbau. Both kind of woods are known for their hardness and often used for heavy construction such as beams, columns and bearings, in building houses and bridges.

LAPORAN POSISI KEUANGAN

FINANCIAL POSITION REPORT

A. Aset

A. Assets


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Total aset Perseroan pada tahun 2015 mencapai Rp 495,39 miliar atau mengalami peningkatan sebesar 11,8% dibandingkan pada tahun 2014. Kenaikan tersebut disebabkan adanya peningkatan aset lancar yang melonjak sebesar 107,4% menjadi Rp 90,85 miliar, sedangkan aset tidak lancar mengalami kenaikan sebesar 1,3% menjadi Rp 404,54 miliar.

Total assets of the Company in 2015 reached Rp 495.39 billion or an increase of 11.8% compared to 2014. The increase was due to an increase in current assets surged by 107.4% to Rp 90.85 billion, while non-current assets increased by 1.3% to Rp 404.54 billion.

Kenaikan jumlah aset lancar yang cukup signifikan tersebut terutama disebabkan karena adanya peningkatan piutang lain-lain pihak ketiga, kenaikan jumlah persediaan, dan adanya kenaikan pada uang muka dan biaya yang dibayar dimuka.

The significant increase in total current assets was primarily due to the increase in other receivables third parties, the rise in inventories, and the increase in advances and prepaid expenses.

B. Liabilitas

B. Liabilities

Total liabilitas Perseroan pada tahun 2015 tercatat sebesar Rp 415,51 miliar atau naik sebesar 14,1% dibandingkan tahun 2014. Dari jumlah tersebut, liabilitas jangka pendek naik 20,0% menjadi Rp 185,47 miliar sedangkan liabilitas jangka panjang naik 9,7%menjadi Rp 230,04 miliar.

Total liabilities of the Company in 2015 was Rp 415.51 billion or an increase of 14.1% compared to 2014. Of these, short-term liabilities rose 20.0% to Rp 185.47 billion, while long-term liabilities increased 9.7 % to Rp 230.04 billion.

Adanya kenaikan pada liabilitas jangka pendek tersebut terutama disebabkan oleh meningkatnya jumlah uang muka penjualan dan juga adanya utang usaha Perseroan pada tahun 2015. Sedangkan kenaikan liabilitas jangka panjang terutama disebabkan utang jangka panjang dari pembiayaan.

The increase in short-term liabilities was mainly caused by the increased number of advance sales and also the debt of the Company in 2015. The increase of long-term liabilities was mainly due to long-term debt financing.

C. Ekuitas

C. Equity

Total ekuitas Perseroan pada tahun 2015 mencapai Rp 79,88 miliar atau naik sebesar 1,4% dibandingkan tahun 2014 yang mencapai Rp 78,77 miliar. Hal ini disebabkan karena adanya kenaikan saldo laba.

Total equity of the Company in 2015 reached Rp 79.88 billion, up by 1.4% compared to 2014 which reached Rp 78.77 billion. This was due to an increase in retained earnings.

LAPORAN LABA RUGI

PROFIT & LOSS REPORT

A. Pendapatan

A. Revenue

Perseroan mencatat pendapatan pada tahun 2015 sebesar Rp 49,12 miliar atau naik sebesar 13,2% dibandingkan tahun 2014. Hal ini terutama disebabkan oleh kenaikan pendapatan dari kayu bulat yang mencapai Rp 32,92 miliar pada tahun 2015 atau naik 99,7% dibandingkan tahun 2014 lalu. Selain itu, kenaikan pendapatan juga disebabkan adanya pendapatan pada tanaman lainnya yang mencapai Rp 1,55 miliar pada tahun 2015 lalu.

B. Beban Pokok Penjualan

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Pada tahun 2015, beban pokok penjualan tercatat sebesar Rp 34,55 miliar atau naik tipis sebesar 1,3% dibandingkan tahun 2014. Hal ini terutama disebabkan oleh naiknya upah buruh langsung dan Laporan Tahunan 2015 PT Bumi Teknokultura Unggul Tbk

The Company recorded revenue in 2015 amounted to Rp 49.12 billion or an increase of 13.2% compared to 2014. This was mainly due to higher income from roundwood which reached Rp 32.92 billion in 2015, up 99.7% compared to 2014. In addition, the increase in revenue was also due to revenue in other plants that reached Rp 1.55 billion in 2015

B. Cost of Goods Sold

In 2015, cost of goods sold amounted to Rp 34.55 billion, up slightly by 1.3% compared to 2014. This was mainly due to the increase in direct labor costs and inventory earlier in the year, although the

burden of raw materials used has decreased.

persediaan awal tahun, meskipun beban dari bahan baku yang digunakan mengalami penurunan. C. Laba Kotor

Perseroan mencatat laba kotor sebesar Rp 14,56 miliar atau naik sebesar 57,1% dibandingkan tahun 2014. Hal ini disebabkan oleh peningkatan pendapatan tahun 2015 lalu.

D. Laba Operasi

C. Gross Profit

D. Operating Profit

Perseroan mencatat laba operasi pada tahun 2015 sebesar Rp 1,47 miliar. Pada tahun 2014, Perseroan masih mengalami kerugian operasi sebesar Rp 1,79 miliar. Laba operasi ini disebabkan meningkatnya pendapatan dan turunnya beban penjualan Perseroan.

E. Laba Bersih dan Laba Komprehensif

The Company recorded a gross profit of Rp 14.56 billion or an increase of 57.1% compared to 2014. This was caused by the increase in revenue in 2015. The Company recorded an operating profit which amounted to Rp 1.47 billion in 2015. In 2014, the Company still suffered an operating loss of Rp 1.79 billion. The operating profit was due to increased revenue and lower selling expenses of the Company.

E. Net Income and Comprehensive Income

Tahun 2015, Perseroan mencatat laba bersih sebesar Rp 271,90 juta dari tahun 2014 sebelumnya yang masih mengalami kerugian bersih sebesar Rp 2,81 miliar. Adanya laba ini disebabkan oleh meningkatnya pendapatan Perseroan.

Sedangkan laba komprehensif tahun berjalan untuk 2015 tercatat sebesar Rp 1,11 miliar dari tahun berjalan 2014 sebelumnya yang masih mencatat rugi komprehensif sebesar Rp 2,87 miliar. Laba komprehensif ini disebabkan oleh naiknya pendapatan. Dengan demikian, laba komprehensif yang dapat diatribusikan kepada entitas induk tahun 2015 mencapai Rp 1,27 miliar, sedangkan kerugian komprehensif yang diatrubusikan kepada kepentingan non pengendali sebesar Rp 163,25 juta.

While comprehensive income for year 2015 amounted to Rp 1.11 billion from comprehensive loss of Rp 2.87 billion in 2014 recorded. This comprehensive income was due to the rise in earnings. Thus, the comprehensive income attributable to the parent entity in 2015 amounted to USD 1.27 billion, while the comprehensive loss attributed to non-controlling interests amounted to USD 163.25 million.

F. Laba per saham

Tahun 2015, Perseroan mencatat laba per saham dasar sebesar Rp 1,00 dibandingkan pada tahun 2014 yang masih mencat rugi per saham dasar yang mencapai Rp 2,60.

In 2015, the Company recorded a net profit of Rp 271.90 million of the previous year 2014 which was a net loss of Rp 2.81 billion. This profit is due to the increased revenue of the Company.

F. Earnings per share

In 2015, the Company recorded earnings per share at USD 1.00 compared to year 2014 which recorded a loss per basic share of Rp 2.60.

LAPORAN ARUS KAS

CASH FLOW REPORT

Tahun 2015 perseroan mencatat arus kas yan g digunakan untuk aktivitas operasi sebesar Rp 6,16 miliar, dibandingkan pada tahun 2014 di mana arus kas yang diperoleh dari aktivitas operasi mencapai Rp 6,02 miliar. Hal ini terutama disebabkan oleh naiknya pembayaran kas kepada pelanggan dan pemasok.

In 2015 the Company recorded cash flows used in operating activities at Rp 6.16 billion, compared to 2014 in which the cash flows from operating activities reached Rp 6.02 billion. This was mainly caused by the increase in cash payments to customers and suppliers.

Sedangkan arus kas yang digunakan untuk aktivitas investasi pada tahun 2015 mencapai Rp 11,75 miliar, mengalami kenaikan dibandingkan tahun 2014 yang mencapai Rp 59,44 miliar. Hal ini terutama disebabkan adanya penurunan aset tetap Perseroan dari Rp 59,44 miliar di 2014 menjadi Rp 11,75 miliar di 2015.

While cash flow used for investing activities in 2015 reached Rp 11.75 billion, an increase compared to 2014 which reached Rp 59.44 billion. This was primarily due to a decrease in the Company's fixed assets from Rp 59.44 billion in 2014 to Rp 11.75 billion in 2015.


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Sementara kas bersih yang diperoleh Perseroan dari aktivitas pendanaan mencapai Rp 17,86 miliar pada tahun 2015, turun dari Rp 52,68 miliar di 2014. Hal ini terutama disebabkan adanya penerimaan sewa pembiayaan dan turunnya penerimaan utang lain-lain.

While the Company's net cash from financing activities reached Rp 17.86 billion in 2015, down from Rp 52.68 billion in 2014. This was mainly due to the receipt of lease financing and decrease in other payables.

Total kas dan setara kas pada akhir tahun 2015 mencapai Rp 1,04 miliar dibandingkan posisi kas dan setara kas di akhir 2014 yang mencapai Rp 1,10 miliar.

Total cash and cash equivalents at the end of 2015 reached Rp 1.04 billion, compared to cash and cash equivalents at the end of 2014 which reached Rp 1.10 billion.

KEMAMPUAN MEMBAYAR UTANG DAN TINGKAT KOLEKTIBILITAS PIUTANG

DEBT PAYING COLLECTIBILITY

Perseroan menggunakan beberapa rasio untuk mengukur kemampuan membayar utang dan tingkat kolektibilitas piutang. Rasio total hutang terhadap ekuitas Perseroan pada tahun 2015 mencapai 5,2 kali mengalami kenaikan dibandingkan tahun 2014 yang mencapai 4,6 kali. Sedangkan rasio lancar Perseroan tahun 2015 sebesar 0,5 kali mengalami kenaikan dibandingkan tahun 2014 sebesar 0,3 kali. Perseroan berpendapat bahwa masih memiliki kemampuan dalam membayar hutang. Sedangkan tingkat kolektibilitas piutang Perseroan sangat baik. Perseroan berpendapat bahwa seluruh piutang usaha dapat ditagih sehingga tidak dibentuk cadangan penurunan nilai.

The Company uses several ratios to measure the ability to pay debts and receivables collectibility. The ratio of total debt to equity of the Company in 2015 reached 5.2 times, an increase compared to 2014, which was at 4.6 times. While the Company's current ratio was at 0.5 times in 2015, an increase compared to 2014 at 0.3 times. The Company believes that it still has the ability to pay the debts. While the Company's receivable collection is at a healthy level. The Company believes that all receivables will be collected so that there is no need to create provision for impairment.

STRUKTUR MODAL PERUSAHAAN DAN KEBIJAKAN MANAJEMEN ATAS STRUKTUR MODAL

CORPORATE CAPITAL STRUCTURE AND MANAGEMENT POLICY ON CAPITAL STRUCTURE

Tujuan pengelolaan modal Perseroan adalah untuk memastikan pemeliharaan rasio modal yang sehat guna mendukung usaha dan memaksimalkan imbalan bagi pemegang saham. Pengelolaan struktur modal Perseroan disesuaikan dengan kondisi perusahaan dan kondisi perekonomian.

The Company's capital management objective is to ensure the maintenance of healthy capital ratios in order to support the business and maximize the rewards for shareholders. Company's capital structure management is adapted to the company conditions and economic conditions.

TARGET DAN REALISASI TAHUN 2015

TARGET AND REALIZATION OF YEAR 2015

Pada tahun 2014, Perseroran menargetkan pertumbuhan laba pada tahun 2015. Perseroan berhasil membukukan laba setelah tahun sebelumnya mengalami kerugian. Hal ini menunjukkan target yang telah ditetapkan Perseroan tersebut dapat tercapai.

In 2014, the Company was targeting growth in earnings for 2015. The Company recorded a profit after a loss a year earlier. This indicates the target set by the Company has been achieved.

IKATAN MATERIAL UNTUK INVESTASI BARANG MODAL

MATERIAL TIES FOR CAPITAL GOODS INVESTMENT

Pada tahun 2015, Perseroan tidak memiliki ikatan material untuk investasi barang modal.

In 2015, the Company has no material commitments for capital goods investment.

INFORMASI MATERIAL MENGENAI INVESTASI, EKSPANSI, DIVESTASI, PENGGABUNGAN/PELEBURAN USAHA, AKUISISI, RESTRUKTURISASI UTANG/ MODAL, TRANSAKSI AFILIASI, DAN TRANSAKSI YANG MENGANDUNG BENTURAN KEPENTINGAN

MATERIAL INFORMATION ABOUT THE INVESTMENT, EXPANSION, DIVESTMENT, COMBINATION / CONSOLIDATION OF BUSINESSES, ACQUISITION, DEBT /CAPITAL RESTRUCTURING, AFFILIATE TRANSACTIONS, AND TRANSACTIONS WITH CONFLICT OF INTEREST

Tahun 2015, perseroan tidak melakukan aksi korporasi yang material terkait ekspansi, divestasi, akusisi serta tidak terdapat transaksi material yang mengandung benturan kepentingan.

In 2015, the Company did not perform material corporate actions related to expansion, divestment, acquisition as well as material transaction with conflict of interest.

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ABILITY

AND

RECEIVABLES

ASPEK PEMASARAN

MARKETING ASPECT

Melihat prospek usaha yang terbuka lebar, Perseroan optimistis mampu bertahan bahkan tumbuh menjadi perusahaan perkayuan terkemuka. Berbekal komitmen untuk mewujudkan visi pelestarian lingkungan dan plasma nutfah, Perseroan menyusun strategi pasar dengan mencermati perkembangan / fluktuasi harga kayu dalam negri, memproduksi kayu yang telah bersertifikasi dari hutan lestari dan memproduksi tanaman hias / potong yang mempunyai nilai ekonomi tinggi.

Looking at the wide-open business prospects, the Company is optimistic to survive and even grow into a leading timber company. Armed with a commitment to realize the vision of environmental conservation and germplasm, the Company develops marketing strategies by observing the development of market / price fluctuations of timber in the country, produces wood that has been certified sustainable and produces ornamental plants with high economic value.

Sementara dalam pangsa pasar, kayu bulat diutamakan untuk memenuhi kebutuhan dalam negeri / industri perkayuan; tanaman hias / potong untuk memenuhi konsumen Kota Jakarta dan sekitarnya, namun kedepannyajuga direncanakan untuk ekspor. Kayu yang diproduksi lebih diutamakan pada kayu jenis Merbau karena mempunyai nilai jual yang tinggi dan pangsa pasarnya / pihak pembelinya sudah jelas.

Whereas in the market, logs are prioritized to meet the needs of domestic / wood industry; ornamental plants to meet the needs of consumers in Jakarta and surrounding areas, but the future is also planned for export. The wood produced is preferably the Merbau type of wood because it has a high value and clear market share.

PROSPEK USAHA 2016

2016 BUSINESS PROSPECT

Tahun 2016 akan menjadi kebangkitan industri kayu nasional seiring dengan kebijakan-kebijakan pemerintah yang mendukung serta melindungi potensi pasar kayu dalam negeri. Presiden Joko Widodo dalam arahannya kepada anggota APHI (Asosiasi Pengusaha Hutan Indonesia) menyatakan mengarahkan agar Hutan Tanaman Industri (HTI) dan Hutan Tanaman Rakyat (HTR) dijadikan penopang untuk membangkitkan sektor kehutanan guna mendukung perekonomian nasional, seperti diberitakan oleh Bisnis Indonesia (10/2/2016).

2016 will be a revival of the national wood industry in line with government policies that support and protect the domestic timber market potential. President Joko Widodo in his speech to members of APHI (Association of Indonesian Forest Concessionaires) directed that industrial timber estates (HTI) and Plantation Forest (HTR) to be used as a crutch to revive the forestry sector in order to support the national economy, as reported by Bisnis Indonesia (10/2 / 2016).

Pemerintah Indonesia juga menjalin kesepakatan dengan Uni Eropa dalam penerapan SVLK (Sistem Verifikasi Legalitas Kayu) dalam perdagangan kayu yang diharapkan dapat mengurangi peredaran kayu ilegal dan juga membatasi masuknya kayu impor. Selain dengan Uni Eropa, pemerintah juga telah menjalin kesepakatan dengan Tiongkok yang setuju untuk menutup pintu impor dari perdagangan kayu ilegal.

The Indonesian government has also established aggreement with the EU in the application of Timber Legality Verification Letter (SVLK) in timber trade that is expected to reduce the circulation of illegal timber and also restrict the entry of imported woods. In addition to the EU, the government also has made an agreement with China to close the door on the import of illegal timber trade.

Kebijakan Perseroan yang fokus pada pasar dalam negeri selaras dengan langkah Pemerintah Indonesia yang menutup ekspor kayu log atau kayu gelondongan dalam negeri. Hal ini dilakukan sebagai upaya mengerek harga komoditas kayu yang saat ini cenderung menurun.

Company policies that focus on the domestic market are in line with the Indonesian government that shut down the export of timber logs in the country. This is done in an effort to hoist the timber commodity prices which are currently in the decline.

Dengan kebutuhan kayu log atau kayu bulat yang terus meningkat, Perseroan yakin prospek bisnis ini sangat cerah kedepannya. Untuk lebih mengenjot kinerja bisnis, Perseroan akan terus berupaya untuk menambah kepemilikan HPH. Diharapkan produksi pun akan meningkat signifikan.

With the increasing needs for logs or roundwoods, the Company believes this business has a very bright prospect for the future. To further boost its business performance, the Company will continue its efforts to increase the ownership of the forest concession right. This is hoped to increase production significantly.


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Tata Kelola Perusahaan Good Corporate Governance Dewan Komisaris dan Direksi PT Bumi Teknokultura Unggul Tbk. berkomitmen untuk menjalankan Tata Kelola Perusahaan yang Baik (GCG) dengan standar tertinggi. Implementasi prinsip-prinsip GCG, yaitu transparansi, akuntabilitas, tanggung jawab, kemandirian, dan kewajaran sangat menentukan dalam mewujudkan visi Perseroan, dan karena itu tertanam di dalam tata nilai dan budaya korporasi.

Board of Commissioners and Directors of PT Bumi Teknokultura Unggul Tbk. are committed to run the Good Corporate Governance (GCG) to the highest standards. Implementation of GCG includes the principles of transparency, accountability, responsibility, independence and fairness that are very important in realizing the Company's vision, and because they are embedded in the corporate values and culture.

Implementasi GCG didasarkan atas pengembangan tanggung jawab di dalam sistem manajemen, penguatan fungsi-fungsi pengawasan, dan peningkatan transparansi. Tata Kelola Perusahaan yang Baik diyakini membawa manfaat besar untuk Perseroan dan para pemangku kepentingan.

GCG implementation is based on the development of responsibility in the management system, strengthening the oversight function, and increased transparency. Good Corporate Governance is believed to bring great benefits to the Company and its stakeholders.

Prinsip-prinsip GCG diterapkan menurut Undang-Undang Nomor 40 Tahun 2007 tentang Perseroan Terbatas, Undang-Undang Nomor 8 Tahun 1995 tentang Pasar Modal, Anggaran Dasar Perseroan, Peraturan Otoritas Jasa Keuangan (POJK) Nomor 21/POJK.04/2015, peraturan Bursa Efek Indonesia, serta undang-undang dan peraturan terkait lainnya. Perseroan juga mematuhi prinsip-prinsip GCG yang diberlakukan oleh Organisasi untuk Kerja Sama dan Pembangunan Ekonomi (OECD) serta Pedoman Umum GCG Indonesia.

GCG principles are applied according to Law No. 40 of 2007 on Limited Liability Companies Act No. 8 of 1995 on Capital Markets, the Articles of Association, Rules of the Financial Services Authority (POJK) No. 21 / POJK.04 / 2015, Indonesia stock exchange rules, as well as other relevant laws and regulations. The Company also adheres to good corporate governance principles imposed by the Organisation for Economic Co-operation and Development (OECD) as well as Indonesia's General Guidelines on GCG.

STRUKTUR TATA KELOLA

CORPORATE GOVERNANCE STRUCTURE

Perseroan bekerja berdasarkan kerangka yang secara jelas diperinci di dalam Anggaran Dasar Perseroan dan peraturan perundang-undangan yang berlaku lainnya. Ketentuan-ketentuan tersebut menetapkan peran dan tanggung jawab Dewan Komisaris dan Direksi serta etika Karyawan, bagaimana mereka menjalankan fungsi dan tugas masing-masing secara efektif, bagaimana mereka berinteraksi satu sama lain, dan apa saja tugas utama setiap komite.

The Company works based on the frameworks detailed in the Articles of Association and other applicable legislation. These provisions define the roles and responsibilities of the Board of Commissioners and Directors and Employees ethics, how they carry out the functions and duties effectively, how they interact with each other, and the main tasks of each committee.

RAPAT UMUM PEMEGANG SAHAM

GENERAL MEETING OF SHAREHOLDERS

RUPS adalah organ perusahaan yang memegang kekuasaan tertinggi dalam Perseroan dan memegang segala kewenangan yang tidak diserahkan kepada Direksi dan Dewan Komisaris.

GMS is an organ of the company which holds the highest authority in the Company and all of the authority that is not submitted to the Board of Directors and Board of Commissioners.

RUPS sebagai organ perusahaan merupakan wadah para pemegang saham untuk mengambil keputusan penting yang berkaitan dengan modal yang ditanam dalam perusahaan, dengan memperhatikan ketentuan Anggaran Dasar dan peraturan perundang-undangan. Keputusan yang diambil dalam RUPS didasari pada kepentingan usaha Perseroan dalam jangka panjang.

GMS as an organ is a medium for the Company shareholders to take important decisions regarding their investment in the Company, subject to the provisions of the Articles of Association and regulations. The decisions taken at the GMS are based on the interests of the Company's business in the long term.

Kewenangan RUPS antara lain mengangkat dan memberhentikan anggota Dewan Komisaris dan Direksi, mengevaluasi kinerja Dewan Komisaris dan Direksi, menyetujui perubahan Anggaran Dasar, menyetujui laporan

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The authority of the GMS includes appointing and dismissing member of the Board of Commissioners and Board of Directors, evaluating the performance of the Board of Commissioners and Board of Directors, approving the amendment of the Articles of Association, approving the

tahunan dan menetapkan bentuk dan jumlah remunerasi anggota Dewan Komisaris dan Direksi serta mengambil keputusan terkait tindakan korporasi atau keputusan strategis lainnya yang diajukan Direksi. Keputusan yang diambil dalam RUPS didasarkan pada kepentingan Perseroan. Tanpa mengurangi kekuasaan dan wewenang yang dimiliki oleh RUPS, RUPS atau pemegang saham tidak dapat melakukan intervensi terhadap pelaksanaan tugas, fungsi dan wewenang Dewan Komisaris dan Direksi untuk menjalankan kewajiban dan haknya sesuai dengan Anggaran Dasar dan peraturan perundang-undangan.

annual report and determining the form and amount of remuneration for the Board of Commissioners and Board of Directors as well as taking decisions related to corporate actions or other strategic decisions proposed by Directors. The decisions taken at the GMS are based on the interests of the Company. Without prejudice to the power and authority held by the GMS, GMS or shareholders are not able to intervene in the implementation of the tasks, functions and authorities of the Board of Commissioners and Board of Directors to carry out the obligations and rights in accordance with the Articles of Association and regulations.

RUPS dan atau pemegang saham tidak melakukan intervensi terhadap tugas, fungsi dan wewenang Dewan Komisaris, serta Direksi dengan tidak mengurangi wewenang RUPS untuk menjalankan hak sesuai dengan Anggaran Dasar dan peraturan perundang-undangan. Pengambilan keputusan RUPS dilakukan secara wajar dan transparan.

GMS and or shareholders are not to intervene against the duties, functions and authority of the Board of Commissioners and Board of Directors, without prejudice to the authority of the GMS to exercise rights in accordance with the Articles of Association and regulations. GMS decision making is conducted properly and transparently.

Pada tahun 2015 Perseroan telah mengadakan Rapat Umum Pemegang Saham Tahunan (RUPST) dan Rapat Umum Pemegang Saham Luar Biasa (RUPSLB) yang diselenggarakan pad tanggal 9 Juni 2015. Kedua RUPS tersebut diselenggarakan bersamaan pada tanggal 9 Juni 2015 bertempat di Ruang Rinjani, Gedung WTC (World Trade Center, Lantai 18, Jalan Jendral Sudirman Kav 31, Kota Jakarta Selatan, yang dihadiri oleh 810.311.867 pemegang saham.

In 2015, the Company held a General Meeting of Shareholders (AGM) and the Extraordinary General Meeting of Shareholders (EGM) held pad on 9 June 2015. Both GMS were held simultaneously on 9 June 2015 and was located at Rinjani, WTC ( World Trade Center, 18th Floor, Jalan Sudirman Kav 31, South Jakarta, and attended by 810,311,867 shareholders.

Hasil Keputusan RUPST adalah sebagai berikut:

Decisions of the AGM are as follows: 1. Received both the Company's 2014 Annual Report including the Operations Report of the Company, the Supervisory Report of the Board of Commissioners, and

1. Menerima baik Laporan Tahunan Perseroan 2014 termasuk di dalamnya Laporan Kegiatan Usaha Perseroan, Laporan Pengawasan Dewan Komisaris, dan 2. Menyetujui dan mengesahkan Neraca dan Perhitungan Laba (Rugi) Komprehensif Perseroan yang dimuat dalam Laporan Keuangan Perseroan untuk tahun buku yang berakhir pada 31 Desember 2014 yang telah diaudit oleh Kantor Akuntan Publik Rexon Nainggolan dan Rekan dengan pendapat Wajar Tanpa Pengecualian sebagaimana ternyata dari laporannya No. 009/RNR/RN/LA/15 tanggal 31 Maret 2015

Sedangkan hasil RUPSLB adalah sebagai berikut:

While the results of the EGM was as follows: 1. Approved the changes throughout the Articles of Association to conform with the provisions of the Financial Services Authority Regulation No. 32 / POJK-04/2014 and No. 33 / POJK-04/2014;

1. Menyetujui perubahan seluruh ketentuan Anggaran Dasar Perseroan untuk disesuaikan dengan ketentuan Peraturan Otoritas Jasa Keuangan Nomor 32/POJK-04/2014 dan Nomor 33/POJK04/2014;

2. Menyetujui memberikan kuasa dan wewenang dengan hak substitusi kepada Direksi Perseroan untuk menyusun dan menyatakan kembali perubahan Anggaran Dasar Perseroan tersebut

2. Approved the Balance Sheet and Comprehensive Profit (Loss) contained in the Company's Financial Statements for the fiscal year ended 31 December 2014 audited by the Public Accountant and Fellow Rexon Nainggolan with unqualified opinion as evident from the report No. 009 / RNR / RN / LA / 15 dated 31 March 2015

2. Approved the provision of power and authority with the right of substitution to the Board of Directors to prepare and restate the Articles of Association


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dalam suatu akta Notaris tersendiri dan selanjutnya melakukan pengurusan untuk memberitahukan perubahan Anggaran Dasar dan memperoleh Persetujuan dari Kementerian Hukum dan Hak Asasi Manusia Republik Indonesia serta melakukan segala tindakan yang diperlukan terkait dengan pelaksanaan keputusan-keputusan tersebut di atas, termasuk untuk mengadakan penambahan dan/atau perubahan Anggaran Dasar Perseroan, jika hal tesebut dipersyaratkan oleh instansi yang berwenang.

of the Company in a notarial deed itself and subsequently maintains an amendment to notify and obtain approval from the Ministry of Justice and Human Rights of the Republic of Indonesia and do all the necessary actions related to the implementation of the decisions mentioned above, including to hold additions and / or changes in the Articles of Association, if this proficiency level is required by the relevant authorities.

DEWAN KOMISARIS

BOARD OF COMMISSIONERS

Dewan Komisaris merupakan organ perusahaan yang bertugas dan bertanggung jawab secara kolektif untuk melakukan pengawasan dan memberikan nasihat kepada Direksi serta memastikan bahwa perusahaa melaksanakan GCG pada seluruh tingkatan atau jenjang organisasi.

BOC is the organ in charge of the Company and is collectively responsible for overseeing and advising the Board of Directors and ensure that the Company implements GCG at all levels of the organization.

Dalam melaksanakan tugas, Dewan Komisaris bertanggung jawab kepada RUPS. Pertanggungjawaban Dewan Komisaris kepada RUPS merupakan perwujudan akuntabilitas pengawasan atas pengelolaan perusahaan dalam rangka pelaksanaan prinsip-prinsip GCG. Kinerja Dewan Komisaris dievaluasi berdasarkan unsur-unsur penilaian kinerja yang disusun secara mandiri oleh Dewan Komisaris. Pelaksanaan penilaian dilakukan pada tiap akhir periode tutup buku. Hasil penilaian kinerja Dewan Komisaris disampaikan dalam RUPS.

In performing its duties, the Board of Commissioners is responsible to the GMS. BOC’s accountability to the GMS is a manifestation of accountability in supervising the management of the Company in the implementation of corporate governance principles. BOC's performance is evaluated based on the elements of performance assessment compiled independently by the Board of Commissioners. Implementation of the assessment are carried out at each period end book closing. BOC performance evaluation results are then presented at the AGM.

Tugas dan tanggung jawab Dewan Komisaris Perseroan adalah:

The roles and responsibilities of the Board of Commissioners are:

1. Conducting oversight on the management of the Company by the Board of Directors and the approval and ratification of the annual work plan and budget of the Company. 2. Hold meetings or regular meetings to discuss the management of the Company's operations.

1. Melakukan pengawasan atas jalannya pengurusan Perseroan oleh Direksi serta memberikan persetujuan dan pengesahan atas rencana kerja dan anggaran tahunan Perseroan.

2. Mengadakan rapat atau pertemuan secara berkala untuk membahas pengelolaan operasional Perseroan.

3. Mengawasi pengelolaan Perseroan atas kebijakan yang telah ditetapkan oleh Direksi dan memberikan masukan jika diperlukan.

4. Menominasikan dan menunjuk calon anggota Dewan Komisaris dan Direksi untuk diajukan dan disetujui dalam RUPS Tahunan 5. Menentukan jumlah remunerasi bagi anggota Dewan Komisaris dan Direksi, berlandaskan pada wewenang yang diberikan dalam RUPS Tahunan.

6. Menunjuk dan menetapkan anggota Komite Audit.

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3. Supervise the management of the Company over the policies established by the Board of Directors and provide feedback if required. 4. Nominate and appoint candidates for Board of Commissioners and Board of Directors to be submitted and approved in the Annual General Meeting 5. Determine the amount of remuneration for the members of the Board of Commissioners and Board of Directors, based on the authority granted in the Annual General Meeting. 6. Appoint and assign the members of the Audit Committee.

Adapun susunan Dewan Komisaris Perseroan adalah sebagai berikut:

The composition of the Board of Commissioners is as follows:

Nama

Jabatan

Tanggal Pengangkatan

Name

Title

Date of Appointment

Anne Patricia Sutanto

Komisaris Utama

12 Juli 2013


President Commissioner

12 Juli 2013

Yenny Sutanto

Komisaris

12 Juli 2013

Yenny Sutanto

Commissioner

12 Juli 2013

Gunawan Angkawibawa

Komisaris Independen

Gunawan Angkawibawa


12 Juli 2013

12 Juli 2013

Selama tahun 2015, Dewan Komisaris mengadakan rapat internal sebanyak 12 (dua belas) kali dan rapat gabungan Dewan Komisaris dengan Direksi sebanyak (dua belas) kali dengan tingkat kehadiran 100% untuk setiap anggota.

In 2015, the Board of Commissioners held an internal meeting as many as 12 (twelve) times and joint meetings with the Board of Directors as the Board of Commissioners 12 (twelve) times with the attendance rate of 100% for each member.

Pada tahun 2015, Dewan Komisaris telah mejalankan fungsinya dalam hal memberikan pengawasan kepada Direksi Perseroan, memberikan pendapatan dan masukan terkait dengan bidang usaha Perseroan dalam memasuki tahun 2015, memberdayakan komite-komite yang berada dibawah Dewan Komisaris, antara lain Komite Audit, untuk mengawasi laporan keuangan dan kinerja finansial maupun operasional lainnya.

In 2015, the Board of Commissioners have carried out their functions in terms of providing oversight to the Board of Directors, providing opinion and input associated with the Company’s business in entering 2015, empowering the committees under the Board of Commissioners, including the Audit Committee, to oversee the financial statements and other financial and operational performance.

DIREKSI

BOARD OF DIRECTORS

Direksi adalah organ perusahaan yang bertanggungjawab penuh atas pengurusan perusahaan untuk kepentingan dan tujuan perusahaan sesuai dengan ketentuan anggaran dasar.

The Board of Directors is the corporate organ fully responsible for the management of the Company's interests and objectives in accordance with the Articles of Association.

Dalam melaksanakan tugasnya, Direksi bertanggung jawab kepada RUPS. Pertanggungjawaban Direksi kepada RUPS merupakan perwujudan akuntabilitas pengelolaan perusahaan dalam rangka pelaksanaan prinsip-prinsip GCG. Kinerja Direksi dievaluasi oleh Dewan Komisaris baik secara individual maupun kolektif berdasarkan unsur-unsur penilaian kinerja yang disusun oleh Komite Nominasi. Pelaksanaan penilaian dilakukan pada tiap akhir periode tahun buku. Hasil penilaian kinerja Direksi oleh Dewan Komisaris disampaikan dalam RUPS.

In performing its duties, the Board of Directors is responsible to the GMS. The accountability Board of Directors to the AGM is a manifestation of the management accountability in the implementation of good corporate governance principles. Directors' performance is evaluated by the Board of Commissioners, both individually and collectively based on the elements of performance assessment drawn up by the Nomination Committee. Implementation of the assessment is made at the end of each fiscal year. The results of the performance assessment of Directors by the Board of Commissioners are then presented at the AGM.

Tugas utama Direksi Perseroan adalah sebagai berikut:

The roles and responsibilities of the Board of Directors include: 1. Take full responsibility for conducting their duties in the interests of the Company in achieving its purpose. 2. Accountable for their work in accordance with applicable laws and regulations and the Articles of Association of the Company. 3. Lead, manage, and control the Company in accordance with the objectives of the Company; 4. Master, maintain, and manage the Company's assets; 5. Prepare annual work plan containing the annual budget of the Company, and submit it to the Board

1. Bertanggung jawab penuh dalam melaksanakan tugasnya untuk kepentingan Perseroan dalam mencapai maksud tujuan. 2. Wajib mempertanggungjawabkan tugasnya sesuai dengan peraturan perundangan yang berlaku dan Anggaran Dasar Perseroan. 3. Memimpin, mengurus, dan mengendalikan Perseroan sesuai dengan tujuan Perseroan; 4. Menguasai, memelihara, dan mengurus kekayaan Perseroan; 5. Menyusun rencana kerja tahunan yang memuat anggaran tahunan Perseroan, dan wajib


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of Commissioners for approval, before the fiscal year begins.

disampaikan kepada Dewan Komisaris untuk memperoleh persetujuan dari Dewan Komisaris, sebelum tahun buku tersebut dimulai. Susunan Direksi Perseroan adalah sebagai berikut:

The composition of the Board of Directors is as follows:

Nama

Jabatan


Name

Title

Date of Appointment

Ari Sutanto

Direktur Utama

12 Juli 2013

Ari Sutanto

President Director

12 July 2013

Kim Byeong Su

Direktur

12 Juli 2013

Kim Byeong Su

Director

12 July 2013

Director

12 July 2013

Director

12 July 2013

Doddy Sutanto

Direktur

12 Juli 2013

Doddy Sutanto

Naning Wahyuningsih

Direktur

12 Juli 2013

Naning Wahyuningsih

TUGAS DAN TANGGUNG JAWAB MASING-MASING DIREKTUR

DUTIES AND RESPONSIBILITIES OF EACH DIRECTOR

DIREKTUR UTAMA - Ari Sutanto 1 Memutuskan dan menentukan peraturan dan kebijakan tertinggi perusahaan 2 Menetapkan strategi-strategi untuk mencapai misi dan visi perusahaan 3 Mengkoordinasikan dan mengawasi semua kegiatan perusahaan

PRESIDENT DIRECTOR - Ari Sutanto 1 Decide and establish the highest rules and policies of the Company 2 Establish strategies to accomplish the mission and vision of the Company 3 Coordinate and supervise all activities of the Company

DIREKTUR KEUANGAN DAN ADMINISRASI UMUM Doddy Sutanto 1 Melaksakan penataan dan pengawasan terhadap seluruh aktifitas menajemen keuangan dan administrasi umum 2 Menetapkan sistem dan prosedur pelaksanaan manajemen keuangan, personalia, dan administrasi 3 Melakukan pengawasan dan pengendalian keuangan dan administrasi

DIRECTOR OF FINANCE AND GENERAL ADMINISTRATION - Doddy Sutanto 1 Carry out structuring and oversight of all financial management activities and general administration

2 Establish systems and procedures for implementing financial management, personnel, and administrative 3 Conduct supervision and control on financial and administration aspects

DIREKTUR PEMASARAN - Kim Byeong Su 1 Merencanakan dan merumuskan kebijakan strategis yang menyangkut pemasaran 2 Melakukan koordinasi dengan lembaga/instansi terkait baik didalam negri maupun di luar negri dalam hal strategi pemasaran produk 3 Mencari celah atau pangsa baru untuk penjualan produk perusahaan

DIRECTOR OF MARKETING - Kim Byeong Su 1 Plan and formulate strategic policies related to marketing 2 Coordinate with agencies / institutions both within the country and outside the country in terms of strategy product marketing 3 Look for loopholes or new market for sales of products

DIREKTUR PENGUSAHAAN HUTAN - Ari Sutanto 1 Merencanakan dan merumuskan kebijakan strategis yang menyangkut usaha pemanfaatan hasil hutan kayu 2 Menyelaraskan semua kebijakan yang ditetapkan dengan aturan-aturan yang telah ditetapkan oleh Kementerian Kehutanan dalam pengoperasian pembalakan kayu 3 Merencanakan operasi pemanfaatan hasil hutan kayu tahunan sesuai dengan aturan Kementerian Kehutanan/Pemerintah

DIRECTOR OF FOREST MANAGEMENT - Ari Sutanto 1 Plan and formulate strategic policies concerning utilization of timber forest products 2 Align all the policies established by the rules set by the Ministry of Forestry in the logging operation

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3 Plan annual timber forest product utilization in accordance with the rules of the Ministry of Forestry /Government

DIREKTUR BIOTEKNOLOGI - Naning Wahyuningsih 1 Melaksanakan pengembangan bio teknologi yang mempunyai nilai komersil tinggi 2 Memanfaatkan secara maksimum peralatan laboratorium dalam pengembangan bio teknologi 3 Memimpin semua aktifitas pembibitan, penanaman, dan pemanenan tanaman pada areal/lahan perusahaan

DIRECTOR OF BIOTECHNOLOGY - Naning Wahyuningsih 1 Carry out the development of biotechnology that has a high commercial value 2 Utilise the laboratory equipments to their highest potential in the development of bio-technology 3 Lead all activities of seeding, planting, and harvesting crops on the Company’s area / land

Selama tahun 2015, Direksi melaksanakan rapat internal Direksi sebanyak 12 (duabelas) kali, dengan rata-rata kehadiran adalah 100% Tingkat kehadiran dalam rapat direksi adalah sebagai berikut:

In 2015, the Board of Directors has conducted an internal meeting as much as twelve (12) times, with an average attendance of 100% as follows:

Nama

Jabatan

Jumlah Kehadiran

%

Ari Sutanto

Direktur Utama

12

Total Attendance

Name

Title

%

100

Ari Sutanto

President Director

12

100

Kim Byeong Su

Director

12

100

Kim Byeong Su

Direktur

12

100

Doddy Sutanto

Direktur

12

100

Doddy Sutanto

Director

12

100

100

Naning Wahyuningsih

Director

12

100

Naning Wahyuningsih

Direktur

12

Sedangkan untuk Rapat Gabungan Dewan Komisaris dan Direksi, tingkat kehadirannya adalah sebagai berikut:

Whereas for the Joint Meetings of the Board of Commissioners and Board of Directors, the level of attendance is as follows:

Nama

Jabatan

Jumlah Kehadiran

%

Name

Title

Total Attendance

%


Komisaris Utama

12

100


President Commissioner

12

100

Yenny Sutanto

Komisaris

12

100

Yenny Sutanto

Commissioner

12

100

Gunawan Angkawibawa

Komisaris Independen

12

100

Gunawan Angkawibawa


12

100

Ari Sutanto

Direktur Utama

12

100

Ari Sutanto

President Director

12

100

Kim Byeong Su

Direktur

12

100

Kim Byeong Su

Director

12

100

Doddy Sutanto

Direktur

12

100

Doddy Sutanto

Director

12

100

Naning Wahyuningsih

Direktur

12

100

Naning Wahyuningsih

Director

12

100

Selama tahun 2015, beberapa tugas yang telah dijalankan Direksi adalah pengembangan pasar-pasar baru yang potensial untuk memperkuat pemasaran produk yang dihasilkan Perseroan, melakukan efisiensi biaya di tengah masih belum stabilnya perekonomian nasional dan melakukan pembenahanpembenahan organisasi Perseroan sehingga Perseroan tetap bisa berkompetisi di tengah persaingan yang ada.

In 2015, some of the tasks that have been run by the Directors are the development of new markets with the potential to strengthen the marketing of products produced by the Company, cost efficiency amid the instability of the national economy and reformed some organization aspects of the Company so that the Company can still compete in the middle competition.

REMUNERASI DEWAN KOMISARIS DAN DIREKSI

REMUNERATION OF THE BOARD OF COMMISSIONERS AND DIRECTORS

Remunerasi yang diberikan kepada Dewan Komisaris dan Direksi didasarkan pada kinerja dan kemampuan Perseroan.

Remuneration paid to the Board of Commissioners and Board of Directors are based on the Company's performance and ability.

Mengacu pada Keputusan RUPS tanggal 9 Juni 2015 yang telah disetujui oleh Pemegang Saham berdasarkan kebijakan Dewan Komisaris, besaran remunerasi Dewan Komisaris dan Dewan Direksi selama 1 (satu) tahun dengan budget untuk tahun 2015 adalah sebesar Rp 6.000.000.000. Jumlah ini mengalami kenaikan dibandingkan tahun 2014 yang mencapai Rp 4.500.000.000

Referring to the decisions of Shareholders dated 9 June 2015 which was approved by the shareholders based on the discretion of the Board of Commissioners, the remuneration of the Board of Commissioners and Board of Directors for 1 (one) year with regards to the 2015 budget is Rp 6.000.000.000. This number increased compared to 2014 which reached Rp 4.5 billion Annual Report PT Bumi Teknokultura Unggul Tbk

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SEKRETARIS PERUSAHAAN

CORPORATE SECRETARY

Dalam memberikan pandangan kepada para pemegang saham bahwa implementasi atas Tata Kelola Perusahaan yang Baik atau Good Corporate Governance, Sekretaris Perusahaan dapat memberikan dampak positif bagi peningkatan kinerja Perseroan melalui perannya antara lain sebagai Koordinator kegiatan pengelolaan informasi internal dan eksternal serta hubungan investor, membantu kegiatan administrasi yang berhubungan dengan pihak eksternal, serta menjaga agar perusahaan tetap comply dengan peraturan-peraturan yang ada.

In providing a view to the shareholders that the implementation of Good Corporate Governance, Corporate Secretary can provide a positive impact on the Company's performance through its role as coordinators management of internal and external information and investor relations, helping administrative activities which deal with the external parties, while ensuring that the Company remains compliant with existing regulations.

Sekretaris Perusahaan Perseroan dijabat oleh Bapak Gilbert Relly, S.H., M.Ak, MBA, Ak. CA., CSRA. Bapak Gilbert adalah Warga Negara Indonesia, lahir di Palembang tahun 1964, gelar Certified Sustainability Reporting Assurer & Specialist (2011), Sarjana Hukum dari Universitas 17 Agustus 1945, Jakarta (2010), Sarjana Ekonomi jurusan Akutansi Universitas Tarumanegara, Jakarta, Indonesia 1987 dan gelar MBA dari City University, Los Angeles, California, AS 1991. Akuntan 2007 & Magister Akuntansi 2009 dari Institut Bisnis dan Informatika Indonesia (IBII/ Kwik Kian Gie School of Business)(program PPAk dan Maksi) dan Register Negara dari Departemen keuangan tahun 2007.

Corporate Secretary of the Company is held by Mr. Gilbert Relly, SH, M. Ak, MBA, Ak. CA., CSRA. Mr. Gilbert is an Indonesian citizen, born in Palembang in 1964, who is Certified Sustainability Reporting assurer & Specialist (2011), Bachelor of Law from 17 Agustus 1945 University, Jakarta (2010), Bachelor of Economics majoring in Accounting from Tarumanegara University, Jakarta, Indonesia in 1987 and MBA from City University, Los Angeles, California, USA, 1991. He also holds a degree in Accountant in 2007 and Master of Accounting in 2009 from the Institute of Business and Information Technology Indonesia (IBII / Kwik Kian Gie School of Business) (PPAk and Maksi program) and State Register from the Ministry of Finance in 2007.

Beliau mengawali karir professional sebagai Auditor pada Kantor Akuntan Publik, perusahaan keuangan, perdagangan, perhotelan, dan perbankan. Ketua Tim Pengeloa Sementara BBKU/BBO(BPPN 1999-2003).

He began his professional career as an auditor at public accounting firm, corporate finance, trading, hospitality, and banking. Chairman of Interim Management Team BBKU / BBO (IBRA 1999-2003).

Adapun pelaksanaan tugas Sekretaris Perusahaan pada tahun 2015 adalah melakukan penyampaian keterbukaan informasi kepada OJK dan BEI terhadap hal-hal material yang berhubungan dengan aktivitas Perseroan, pelaporan registrasi pemegang efek, penyelenggaraan RUPS Tahunan dan RUPS Luar Biasa, penyampaian laporan keuangan dan melakukan komunikasi dengan pihak eksternal terkait dengan kebijakan Perseroan.

The implementation of the Corporate Secretary's duty in 2015 was to perform the delivery of disclosure of information to the FSA and the IDX on material things that relate to the Company's activities, reporting registration of security holders, holding the Annual General Meeting and Extraordinary General Meeting, financial reporting and communication with external parties associated with Company policy.

KOMITE AUDIT

AUDIT COMMITTEE

Dalam menunjang pelaksanaan GCG, Perseroan telah membentuk Komite Audit yang bertugas membantu Dewan Komisaris berdasarkan Surat Keputusan Dewan Komisaris No. 001/Dekom/BTEK/II/2015 Tanggal 17 Februari 2015 tentang Komite Audit.

In supporting the implementation of good corporate governance, the Company has formed an Audit Committee to assist the Board of Commissioners pursuant to Decree No. BOC 001 / Dekom / BTEK / II / 2015 dated 17 February 2015 on the Audit Committee.

Tugas utama Komite Audit adalah mendorong diterapkannya GCG, terbentuknya struktur pengendalian internal yang memadai, meningkatkan kualitas keterbukaan dan pelaporan keuangan serta mengkaji ruang lingkup, ketepatan, kemandirian dan objektivitas akuntan publik. Komite Audit bertanggung jawab kepada Dewan Komisaris.

The main tasks of the Audit Committee are to encourage the implementation of good corporate governance, establishment of an adequate internal control structure, improve the quality of disclosure and financial reporting, and review the scope, accuracy, independence and objectivity of the public accountant. The Audit Committee is responsible to the Board of Commissioners.

Adapun tugas dan tanggung jawab Komite Audit adalah sebagai berikut:

The roles and responsibilities of the Audit Committee are as follows:

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1. Evaluation and review of the Company's Financial Statements periodically based on the applicable regulation and accounting principles.

1. Melakukan evaluasi dan penelaahan Laporan Keuangan Perseroan secara periodik berdasarkan peraturan dan prinsip-prinsip akuntansi yang berlaku. 2. Melakukan pengawasan dan penilaian atas pelaksanaan kegiatan serta hasil audit oleh Unit Audit Internal. 3. Memberikan rekomendasi sehubungan dengan proses pengendalian internal. 4. Melakukan kajian atas kompetensi dan independensi auditor eksternal serta atas kesesuaian, ruang lingkup dan honorarium audit eksternal. 5. Memberikan penjabaran tugas dan tanggung jawab Komite Audit untuk tahun buku yang bersangkutan sesuai dengan kebutuhan auditor eksternal.

2. Monitor and conduct assessment of the implementation and results of the audit by the Internal Audit Unit. 3. Provide recommendations with respect to the internal control process. 4. Conduct a study on the competence and independence of external auditors as well as the suitability, scope and external audit honorarium. 5. Provide translation of duties and responsibilities of the Audit Committee for the fiscal year concerned in accordance with the needs of the external auditor.

Susunan Komite Audit Perseroan adalah sebagai berikut:

The composition of the Audit Committee is as follows:

Nama

Jabatan


Name

Title

Date of Appointment

Gunawan Angkawibawa

Ketua

17 Februari 2015

Gunawan Angkawibawa

Chairman

17 February 2015

Nur Muhammad S.E., Ak., M.Si., CA, CPA

Anggota

17 Februari 2015

Nur Muhammad S.E., Ak., M.Si., CA, CPA

Member

17 February 2015

Joshua Hutapea S.E.

Anggota

17 Februari 2015

Joshua Hutapea S.E.

Member

17 February 2015

Biodata Bapak Gunawan Angkawibawa telah ditulis dalam biodata Dewan Komisaris.

Biography Mr. Gunawan Angkawibawa has been written in the biography of BOC.

Biodata Bapak Nur Muhammad S.E., Ak., M.Si., CA, CPA

Biography of Mr. Nur Muhammad S.E., Ak., M.Sc., CA, CPA

Warga Negara Indonesia. Lulusan dari Fakultas Ekonomi Jurusan Akuntansi pada Univ. Trisakti Jakarta, yang kemudian melanjutkan ke jenjang PPAK (Pendidikan Profesi Akuntansi) dan menuntaskan program pendidikan Magister Akuntansi di universitas yang sama. Berpengalaman bekerja sebagai Auditor di beberapa Kantor Akuntan Publik (KAP) terkemuka di Jakarta.

Indonesian citizen. Graduate from the Faculty of Economics Department of Accounting at the Univ. Trisakti Jakarta, he subsequently continued to pursue PPAK (Professional Accounting Education) and complete Master of Accounting at the same university. He is experienced in working as an auditor at several leading Public Accounting Firm (KAP) in Jakarta.

Biodata Bapak Joshua Hutapea S.E.

Biography of Mr. Joshua Hutapea S.E.

Warga Negara Indonesia, Sarjana Jurusan Akuntansi dari Fakultas Trisakti. Pemegang Brevet Pajak A, B, C dari STAN dan anggota IKPI (Ikatan Konsultan Pajak Indonesia). Berpengalam-an bekerja sebagai Manager Keuangan. Berpengalaman sebagai auditor di beberapa Kantor Akuntan Publik hingga jenjang jabatanManager Audit. Sedang mengambil program pendidikan Magister Hukum.

Indonesian citizen, Bachelor of Accounting from Trisakti University. He also holds Tax Brevet A, B, C of STAN and member of IKPI (Indonesia Tax Consultants Association). He is experienced as Finance Manager, auditor in several public accounting firm with the latest position in the managerial level. He is currently pursuing Master of Law.

Selama tahun 2015, Komite Audit telah melakukan rapat sebanyak 4 kali yang dilakukan bersama dengan Direksi Perseroan, dengan tingkat kehadiran 100%. Rapat membahas tentang hasil kinerja laporan finansial interim dan laporan audit tahun 2015.

In 2015, the Audit Committee has conducated meetings as many as 4 times jointly with the Board of Directors, with the attendance rate of 100%. The meetings discussed the results of the performance of interim financial statements and the audit report in 2015.


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Pelaksanaan tugas Komite Audit Perseroan pada tahun 2015 yang telah dilaporkan kepada Dewan Komisaris adalah sebagai berikut: 1. Mengawasi pelaksanaan audit finansial bekerja sama dengan Kantor Akuntan Publik. 2. Mengawasi pelaksanaan manajemen risiko Perseroan 3. Mengawasi pelaksanaan tata kelola perusahaan.

Implementation of the tasks of the Audit Committee in 2015 that have been reported to the Board of Directors are as follows: 1. Oversee the implementation of financial audit in collaboration with the Public Accountant Office. 2. Oversee the implementation of risk management 3. Oversee the implementation of corporate governance.

Dalam menjalankan tugasnya, Komite Audit Perseroan berpatokan pada Piagam Komite Audit. Piagam Komite Audit telah disahkan oleh Dewan Komisaris pada tanggal 15 September 2014. Piagam ini mendefinisikan tujuan, wewenang dan tanggung jawab aktivitas audit internal. Piagam Komite Audit menetapkan posisi kegiatan audit di dalam organisasi, kewenangan akses terhadap catatan, personel dan properti fisik yang relevan dengan pelaksanaan penugasan dan mendefinisikan lingkup aktivitas audit internal.

In performing its duties, the Audit Committee puts its reference on the Audit Committee Charter. The Charter has been approved by the Board of Commissioners on 15 September 2014. This Charter defines the purpose, authority and responsibility of the internal audit activities. The Charter specifies the role of audit activities within the organization, authorizes access to records, personnels, and physical properties relevant to the assignment and define the scope of the internal audit activity.

AUDIT INTERNAL

INTERNAL AUDIT

Audit internal adalah suatu kegiatan pemberian keyakinan (assurance) dan konsultasi yang bersifat independen dan obyektif, dengan tujuan untuk meningkatkan nilai dan memperbaiki operasional Perusahaan, melalui pendekatan yang sistematis, dengan cara mengevaluasi dan meningkatkan efektivitas manajemen risiko, pengendalian dan proses tata kelola perusahaan.

Internal audit is an activity providing assurance and consultancy that are independent and objective, with the aim to increase the value and improve the operations of the Company, through a systematic approach, by evaluating and improving the effectiveness of risk management, control and governance processes.

Satuan Audit Internal dibentuk dengan Surat Keputusan Direksi No : 218/BTEK-DIR/XII/2015 tanggal 18 Desember 2015 Tentang Pemberhentian dan Pengangkatan Satuan Audit Internal, yang bertugas memberikan pelaporan dan bertanggung jawab kepada Direktur Utama. Untuk menjamin independensi SAI, SAI juga melaporkan hasil pemeriksaannya kepada Dewan Komisaris.

The Internal Audit Unit was established by the Board of Directors Decree No: 218 / BTEK-DIR / XII / 2015 dated 18 December 2015 On Dismissal and Appointment of Internal Audit Unit, which will provide reporting and is responsible to the President Director. To guarantee the independence of the IAU, the IAU also reports the audit results to the Board of Commissioners.

Hingga Desember 2015, SAI memiliki 3 (tiga) orang anggota, termasuk 1 (satu) orang kepala SAI dan 2 anggota SAI. Komposisi anggota Audit Internal telah memenuhi ketentuan, karena berasal dari berbagai latar belakang keilmuan dan juga memahami tugas-tugas audit Perusahaan.

Until December 2015, IAU has three (3) members, including one (1) person as the head and two members. The composition of the Internal Audit have met the requirements, because they come from different educational backgrounds and also understand the tasks of the Company's audit.

Adapun susunan Komite Audit Perseroan adalah sebagai berikut:

The composition of the Audit Committee is as follows:

Totok Sudarnadi sebagai Kepala Satuan Audit

Totok Sudarnadi as Head of Audit

Warga Negara Indonesia, lahir tahun 1952. Berpengalaman kerja sebagai Senior Auditor pada KAP "Drs Utomo, Mulia & Co" (SGV Group) pada tahun 1974 s/d 1982, dan beberapa posisi Manager pada beberapa perusahaan perkayuan, yaitu PT Kayu Lapis Indonesia pada tahun 1982 s/d 2001 dan PT Wana Rimba Kencana / PT Mutiara Kalja Permai pada tahun 2002 s/d 2014.

Indonesian citizen, born in 1952. He is experienced working as a Senior Auditor at PAO "Drs Utomo, Mulia & Co" (SGV Group) from 1974 to 1982, and Managerial positions at several timber companies, namely PT Kayu Lapis Indonesia from 1982 to 2001 and PT Wana Rimba Kencana / PT Mutiara Kalja Permai from 2002 to 2014.

38


Argo Nugroho, sebagai anggota.

Argo Nugroho, as member.

Warga Negara Indonesia, lahir tahun 1960. Berpengalaman lebih dari 17 tahun dibidang HRD di perusahaan perkayuan dan kehutanan serta beberapa tahun di bidang management compliance di berbagai perusahaan.

Indonesian citizen, born in 1960. He has more than 17 years of experience in HR at logging and forestry industry, as well as several years in the field of compliance management in various companies.

H. Bambang Sutopo sebagai anggota.

H. Bambang Sutopo as member.

Warga negara Indonesia, lahir tahun 1955. Berpengalaman pada beberapa perusahaan perkayuan di Indonesia.

Indonesian citizen, born in 1955. He is experienced working in timber companies in Indonesia.

Dalam menjalankan tugasnya, Unit Audit Internal berpatokan pada Piagam Audit Internal yang berisi panduan dalam melakukan tugas-tugasnya.

In doing its duties, the Internal Audit Unit puts its bearing on the Internal Audit Charter, which contains guidelines in performing its duties.

KANTOR AKUNTAN PUBLIK

PUBLIC ACCOUNTANT OFFICE

Berdasarkan hasil RUPST tanggal 9 Juni 2015, Perseroan telah menunjuk Kantor Akuntan Publik bertugas untuk melakukan kegiatan audit dengan berpedoman pada standar audit yang ditetapkan. Perseroan menunjuk Kantor Akuntan Publik (KAP) Doli, Bambang, Sulistyanto, Dadang & Ali untuk melaksanakan audit laporan keuangan Perseroan dan entitas Anak Perusahaan pada 2015. Akuntan publik yang ditunjuk tidak memberikan jasa lain selain jasa audit laporan keuangan Perseroan. Pada 2015, jumlah dana yang dikeluarkan Perseroan untuk biaya KAP dan jasa lembaga profesi penunjang lainnya mencapai Rp 385.000.000

Based on the results of Annual General Meeting on 9 June 2015, the Company has appointed a public accounting office tasked to conduct the audit based on the established auditing standards. The Company re-appointed Public Accounting Office (PAO) Doli, Bambang, Sulistyanto, Dadang & Ali audit the financial statements of the Company and its Subsidiaries entity in 2015. The appointed public accountant does not provide other services, except auditing the Company's financial statements. In 2015, the amount of fund issued by the Company for the cost of PAO and other supporting services of professional institutions reached USD 385 million

MANAJEMEN RISIKO

RISK MANAGEMENT

Risiko Makro Ekonomi

Macro Economics Risk

Menurunnya pertumbuhan ekonomi negara dapat memperngaruhi daya beli masyarakat dan bisa memperburuk kondisi investasi

The decline in the country's economic growth may affect consumers’ purchasing power and could worsen the investment conditions

Untuk mengantisipasi faktor risiko tersebut, Perseroan selalu membuat proyeksi-proyeksi dengan mempertimbangkan kondisi perekonomian nasional pada masa mendatang dan juga tetap berusaha mempertahankan mutu produk sehingga dapat memberikan nilai jual yang tinggi.

In anticipation of these risk factors, the Company always make projections by considering the national economic condition in the future and also keep trying to maintain the quality of the products so that they can provide high selling value.

PEMEGANG SAHAM UTAMA DAN PENGENDALI MAJOR AND CONTROLLING SHAREHOLDERS Nama/Name

Jumlah Saham/ Total Shares

Persen/ Percentage

Pemegang Saham Utama / Major Shareholder

Pengendali / Controlling Shareholder

1.PT ASABRI (Persero)

200.000.000

18,13%

Ya / Yes

Tidak / No

2.Edy Suwarno Al Jab L Sing

61.024.500

5,53%

Tidak / No

Ya / Yes

Risiko Cuaca

Weather Risk

Salah satu bidang usaha Perseroan adalah agribisnis, di mana keLangsungan hidup tanaman sangat tergantung dengan faktor cuaca. Oleh karena itu, dengan cuaca yang tidak menentu, musim kering yang berkepanjangan akan sangat mempengaruhi usaha Perseroan.

One area of the Company's businesses is agribusiness, where the survival of plants depends on weather factors. Therefore, with erratic weather condition, the prolonged drought will affect the Company's business.


39

Untuk mengantisipasi risiko tersebut, Perseroan senantiasa memantau perkembangan cuaca dan menyesuaikan tumbuhan-tumbuhan bibit yang rentan terhadap cuaca, pengaturan tata waktu operasional pembalakan kayu yang tepat, sehingga dampak terhadap Perseroan bisa diminimalkan.

In anticipation of such risks, the Company continues to monitor weather developments and adjust the seedling plants that were exposed to the weather, time arrangement for logging, so the impact on the Company can be minimized.

SUMBER DAYA MANUSIA

HUMAN RESOURCES DEVELOPMENT

Perseroan memandang karyawan sebagai aset yang paling berharga. Mereka bukan sebagai alat produksi melainkan mitra utama. Oleh sebab itu, Perseroan selalu mengusahakan untuk dapat meningkatkan produktivitas dan kesejahteraan karyawan, fasilitas kerja, dan suasana kerja yang kondusif, memberi imbalan secara adil serta menempatkan karyawan sesuai dengan bidangnya masing-masing agar kemajuan Perseroan dapat tercapai, baik pada masa kini maupun masa mendatang.

The Company sees its employees as the most valuable asset. They are not a means of production but the main partners. Therefore, the Company always strive to improve the productivity and welfare of employees, working facilities and a conducive working atmosphere, reward them fairly and put the employees in accordance with their respective fields so that progress of the Company can be reached, both in the present and future.

Strategi pengelolaan SDM kami menekankan pada kompetensi SDM yang sejalan dengan portofolio bisnis kami. Untuk itu, kami menghargai SDM dengan memberikan paket remunerasi yang kompetitif sesuai dengan kemampuan dan prestasi karyawan, yang terdiri dari gaji pokok dan tunjangan, benefit serta insentif dan bonus yang dikaitkan dengan kinerja dan berbagai fasilitas termasuk fasilitas kesehatan bagi karyawan dan keluarganya.

The Company’s HR management strategy emphasizes on HR competencies that are in line with our business portfolio. For that, we appreciate our employees by providing competitive remuneration package in accordance with the capabilities and accomplishments of the employees, which consists of basic salary and allowances, benefits and incentives and bonuses linked to the performance and range of facilities including medical facilities for employees and their families.

PELATIHAN DAN PENINGKATAN KOMPETENSI

TRAINING AND COMPETENCY IMPROVEMENT

Selama tahun 2015, Perseroan melakukan beberapa pelatihan antara lain: 1. Pelatihan Organisasi & Perusahaan. Pelatihan ini bertujuan membekali pengetahuan tentang organisasi dan perusahaan serta peraturanperaturan yang berlaku. 2. Pelatihan ketrampilan teknis yang bertujuan untuk membekali pengetahuan dan ketrampilan teknis untuk mendukung proses bisnis perusahaan dan fungsi pokok jabatan. 3. Pelatihan ketrampilan pendukung yang bertujuan membekali pengetahuan dan ketrampilan pendukung yang menunjang tugas pokok jabatan. 4. Pelatihan kepemimpinan dan manajemen yang bertujuan membekali pengetahuan dan ketrampilan dalam manajemen kepemimpinan 5. Pelatihan Pengembangan Pribadi untuk pengembangan potensi diri agar dapat dihasilkan suatu kinerja yang maksimal.

In 2015, the Company has conducted various traning programs including: 1. Organization & Company Training. The training is aimed at providing knowledge about the organization and the Company as well as the applicable regulations. 2. The technical skills training aimed to equip the employees with knowledge and technical skills to support the Company's business processes and functions of the principal positions. 3. Supporting skills training aimed at providing knowledge and skills that support the principal tasks of supporting positions. 4. Leadership and management training aimed at providing knowledge and skills in management leadership 5. Personal Development Training for development of potential in order to attain maximum performance.

40


KOMPOSISI KARYAWAN EMPLOYEES COMPOSITION

KOMPOSISI KARYAWAN / EMPLOYEES COMPOSITION

1. KOMPOSISI BERDASARKAN TINGKAT PENDIDIKAN EMPLOYEES COMPOSITION BASED ON EDUCATIONAL LEVEL

2. KOMPOSISI BERDASARKAN USIA EMPLOYEES COMPOSITION BASED ON AGE

Pendidikan/Educational Level

2015

2014

Usia / Age

2015

2014

S 1 ke atas / Bachelor Degree and above

20

15

Dibawah 30 tahun / Under 30 years

64

84

D 3 / Diploma

8

7

30 - 40 tahun / years

61

79

SMA / High School

111

89

40 -50 tahun / years

57

46

SMP/ Junior High School

49

72

50 - 60 tahun / years

47

15

229

227

SD / Primary School

41

44

Diatas 60 tahun / Above 60 years

Total

229

227

Total

3

Risiko Kurs Mata Uang

Foreign Currency Risk

Risiko terhadap kurs valuta asing adalah salah satu bentuk risiko yang paling umum. Untuk mengantisipasi hal tersebut, manajemen selalu memantau pergerakan kurs mata uang asing dan melakukan prakiraan terhadap perubahan / pergerakan kursterutama di dalam negeri.

Risks on the foreign exchange rate is one of the most common forms of risk. To anticipate this, the management constantly monitors the movement of foreign exchange rates and forecast the change / movement of currency locally.

STANDAR KODE ETIK

STANDARD CODE OF ETHICS

Perseroan telah memiliki kode etik yang mengatur standar etika dan perilaku yang berlaku kepada semua karyawan, manajemen dan pemangku kepentingan. Beberapa di antaranya adalah seperti menunjukkan kejujuran, objektivitas dan kesungguhan dalam melaksanakan tugas dan memenuhi tanggung jawab profesinya, loyalitas terhadap organisasi, tidak boleh secara sadar terlibat dalam kegiatan-kegiatan yang menyimpang atau melanggar hukum, tidak boleh secara sadar terlibat dalam tindakan dan atau kegiatan yang dapat mendiskreditkan profesi audit internal atau mendiskreditkan organisasinya dan tidak boleh menerima sesuatu dalam bentuk apapun dari karyawan, rekan kerja, klien, pelanggan, pemasok.

The Company has a code of ethics that govern the ethical and behavioral standards that apply to all employees, management and stakeholders. Some of them includes honesty, objectivity and seriousness in implementing the tasks and fulfilling the responsibilities of their profession, loyalty towards the organization, shall not knowingly engage in activities that deviate the laws or unlawful, must not knowingly engage in actions or activities that can discredit the profession of internal auditing or the organization and should not receive anything in any form from employees, colleagues, clients, customers, suppliers.

Kode etik tersebut telah disosialisasikan kepada karyawan dan secara rutin diingatkan dalam berbagai kegiatankegiatan Perseroan.

The code of ethics have been socialised to the employees and are regularly reminded during the various programs held by the Company.

WISTLEBLOWING SYSTEM

WISTLEBLOWING SYSTEM

Perseroan belum memiliki sistem pengaduan internal secara khusus. Namun untuk fungsi-fungsi tersebut diberikan kepada manajemen dan sumber daya manusia, yang bertanggung jawab kepada Direksi.

The Company does not have an internal complaint system in particular. However, such function is given to the management and human resources, who are responsible to the Board of Directors.


41

Tanggung Jawab Sosial Perusahaan Corporate Social Responsibility Tanggung Jawab Sosial Perusahaan merupakan bentuk komitmen Perusahaan untuk meningkatkan kesejahteraan dan kualitas hidup masyarakat , lingkungan sekitar dan juga kepada karyawan. Perusahaan menyadari sepenuhnya, bahwa untuk dapat mencapai tujuan jangka panjang Perusahaan dibutuhkan sinergi yang harmonis

Corporate Social Responsibility is a form of the Company’s commitment to improve the welfare and quality of life of the society, the environment and also to the employees. The Company is fully aware that in order to achieve longterm goals, harmonious synergy is essential.

Segala upaya dan usaha dilakukan oleh Perseroan demi menciptakan lingkungan dan masa depan yang lebih baik.

All efforts are made by the Company in order to create a better environment and future.

Pelaksanaan kegiatan CSR dengan memberikan kontribusi bagi perkembangan masyarakat sekitarnya dan tetap menjalin hubungan yang harmonis antara lain : • Memberikan kompensasi kepada masyarakat sekitarnya; • Meningkatkan tata kelola hutan yang mengacu pada Pengelolaan Hutan Produksi Lestari (PHPL) agar dapat terciptanya hutan produksi yang berkelanjutan; • Menyediakan lapangan pekerjaan bagi masyarakat sekitarnya yang disesuaikan dengan kebutuhan Perseroan maupun entitas anak; • Meningkatkan kualitas produksi dan melakukan penanaman kembali atas area yang diproduksi. • Sebagai bentuk tanggung jawab sosiial kepada masyarakat lokal sekitar hutan, Perseroan telah memberikan kompensasi (dana ulayat) sebesar Rp. 2.600.000.000,- per tahun.

The implementation of CSR activities by contributing to the development of the surrounding communities and fostering harmonious relationships include: • Providing compensation to the surrounding community; • Improving forest governance in accordance to the Sustainable Forest Management (SFM) in order to create sustainable production forest; • Providing jobs for the surrounding communities that are tailored to the needs of the Company and its subsidiaries; • Improving the quality of production and replanting the area being produced. • As a form of social responsibility to the local communities around the forest, the Company provides compensation (communal funds) amounting to Rp. 2.6 billion, - per year.

Perseroan melakukan PHPL sebagai bentuk komitmen dan tanggung jawab Perseroan terhadap lingkungan dengan menginvestasikan dana sebesar Rp 1.500.000.000 per tahun.

The Company did Sustainable Forest Management as its commitment and responsibility to the environment by investing Rp 1.5 billion per year.

Mengenai ketenagakerjaan, berdasarkan aturan Kemenakertrans Nomor 24 tahun 2011 tentang BPJS, Perseroan mengikutsertakan segenap karyawannya untuk menjadi anggota BPJS. Untuk melaksanakan kegiatan ini, Perseroan telah mengeluarkan Rp. 575.600.000 per tahun.

Regarding employment, based on the rule of Manpower No. 24 of 2011 on BPJS, the Company include its employees to become members BPJS. To carry out these activities, the Company has issued Rp. 575.6 million per year.

Terkait aspek produksi Perseroan melakukan SVLK atau sertifikasi kayu dengan anggaran sebesar Rp 250.000.000 per tahun.

In relation to production aspects, the Company undergoes SVLK or certified wood with a budget of Rp 250 million per year.

PEMBERDAYAAN MASYARAKAT

COMMUNITY EMPOWERMENT

Pemberdayaan masyarakat merupakan hal penting bagi seluruh perusahaan di Indonesia tidak terkecuali PT Bumi Teknokultura Unggul Tbk. Bagi Perseroan, masyarakat sekitar merupakan aset yang harus dijaga untuk kesinambungan berjalannya roda perusahaan.

Community empowerment is essential for all companies in Indonesia with no exception for PT Bumi Teknokultura Unggul Tbk. For the Company, the local community is an asset that must be maintained to keep the Company afloat.

Untuk itu pada 2015, Perseroan fokus pada program berkelanjutan dalam mengimplementasikan corporate social responsibility (CSR). Dalam penyaluran dana lebih diutamakan yang sifatnya pemberdayaan masyarakat. Khususnya program-program yang mempunyai creating user value (nilai tambah edukasi).

Therefore in 2015, the Company focused on sustainable programs in the implementation of corporate social responsibility (CSR). In terms of distribution of funds, the Company puts its preference on funds that are empowering the community. Especially programs that have value-added education.

42


Di bidang keselamatan kerja, kami memastikan bahwa perusahaan adalah tempat kerja aman bagi karyawan dengan memantau secara ketat proses usaha. Kami memiliki program Kesehatan dan Keselamatan Kerja (K3) yang telah disosialisasikam kepada seluruh karyawan sehingga mereka dapat bekerja dengan aman.

In the field of occupational safety, we ensure that the Company is a safe workplace for employees by closely monitoring its business processes. We have a Work Health and Safety Program (K3) which has been socialised to all employees so that they can work safely.

Ke depannya, Perseroan akan terus melakukan lebih banyak lagi Tanggung Jawab Sosial Perusahaan dan memberikan kontribusi yang lebih besar kepada masyarakat demi terciptanya masa depan yang lebih cerah.

Going forward, the Company will continue to implement more CSR and provide greater contribution to society in order to create a brighter future.

KOMPOSISI PEMEGANG SAHAM COMPOSITION OF SHAREHOLDERS: 31 DESEMBER 2015 December 31, 2015 Pemegang saham Shareholders

Jumlah saham Number of shares

PT ASABRI (Persero)

Jumlah Amounts (Rp)

200.000.000

18,13

20.000.000.000

61.024.500

5,53

6.102.450.000

841.953.000

76,34

84.195.300.000

1.102.977.500

100,00

110.297.750.000

Edy Suwarno Al Jab L Sing Masyarakat < 5% Jumlah

% Kepemilikan Percentage of Ownership

Perincian pemegang saham Details of Shareholders: A. Pemodal dalam negeri Local Investor Perorangan Individual

581.675.898

52,74

Perseroan terbatas Local Company

381.070.002

34,55

Dana pensiun Pension Fund

475.000

0,04

Yayasan Foundation

-

-

Sub total

963.220.900

87,33

B. Pemodal asing Foreign Investor 4.398.900

0,40

Perseroan terbatas Local Company

Perorangan Individual

135.357.700

12,27

Sub total

139.756.600

12,67

KRONOLOGI PENCATATAN SAHAM CHRONOLOGY STOCK LISTING Saham Baru New Shares

Saham Ditempatkan dan disetor Penuh Share Issued and Fully Paid

13 Mei 2014

120.000.000

Penerbitan saham waran I

15 Desember 2014

Penerbitan saham waran II

8 April 2015

Penerbitan saham waran III

13 Mei 2007

160.720.500

Keterangan Information Penawaran Perdana

Tanggal Date

Nominal Nominal

Tercatat di Recorded in

920.000.000

100

BEI

10.000.000

930.000.000

100

BEI

12.257.000

942.257.000

100

BEI

1.102.977.500

100

BEI


43

KINERJA SAHAM STOCK PERFORMANCE 2014 Period

High

Low

Close

Kuartal I

1,550

1,345

1,375

373,376,700

Volume

556,309,962,500

Value

Kuartal II

1,500

1,160

1,500

375,606,000

468,686,898,000

Kuartal III

1,500

1,245

1,400

529,038,200

621,692,387,000

Kuartal IV

1,500

1,220

1,260

713,819,430

819,707,072,000

Total

1,991,840,330

2,466,396,319,500

2015

44

Period

High

Low

Close

Kuartal I

1,310

1,185

1,210

Volume 1,003,426,200

Value 1,139,909,116,000

Kuartal II

1,300

1,190

1,195

232,483,339

283,639,488,300

Kuartal III

1,600

1,165

1,435

2,110,427,227

2,794,580,467,300

Kuartal IV

1,800

1,255

1,800

2,552,440,871

3,675,989,502,450

Total

5,898,777,637

7,894,118,574,050


LEMBAGA PENUNJANG PASAR MODAL CAPITAL MARKET SUPPORTING INSTITUTIONS NOTARIS NOTARY : DESMAN, S.H., M.Hum., M.M. Jl. Muara Karang Raya No. 10 Jakarta Utara 14450 Phone : (62-21) 663 0328, 666 00923 Fax : (62-21) 662 2143 KANTOR AKUNTAN PUBLIK PUBLIC ACCOUNTANT : Doli, Bambang, Sulistiyanto, Dadang & Ali Registered Public Accountant M Gold Tower Office l/ Floor Jl. KH. NoerAli-Kalimalaag Bekasi 17148 Phone : (62-21)28087120(Iluntiag) Fax : (62-21)28087121 BIRO ADMINISTRASI EFEK SHARE REGISTER : PT FICOMINDO BUANA REGISTRAR Mayapada Tower, Lt. 10, Suite 02 B Jl. Jend. Sudirman Kav. 28 Jakarta Selatan, 12920 Phone : (62-21) 5212316, 5212317 Fax : (62-21) 5212320


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46


Annual Report PT Bumi Teknokultura Unggul, Tbk.

1

PT BUMI TEKNOKULTURA UNGGUL Tbk AND ITS SUBSIDIARIES Consolidated Financial Statements For the year ended December 31, 2015 with comparative figures ended December 31, 2014 (Figures are Presented in Rupiah, unless Otherwise Stated)

Directors’ Statement Independent Auditors’ Report Consolidated Statements of Financial Position Consolidated Statements of Comprehensive Income Consolidated Statements of Changes in Equity Consolidated Statements of Cash Flows Notes to Financial Statements

2

Laporan Tahunan 2015 PT Bumi Teknokultura Unggul, Tbk.


3

4



5

6


PT BUMI TEKNOKULTURA UNGGUL Tbk AND ITS SUBSIDIARIES Consolidated Statements of Financial Position December 31, 2015 with comparative figures December 31, 2014 (Figures are Presented in Rupiah, unless Otherwise Stated)

Notes

Desember 31

December 31

December 31 ASSETS CURRENT ASSETS Cash and cash equivalents Trade receivable Third parties Other receivables Third parties Inventories Advance and prepaid expense Prepaid expenses Total Current Assets NON-CURRENT ASSETS Fixed assets - net Deferred tax asset Goodwill Other Assets Total Non-Current Assets TOTAL ASSETS

*) After the transition adjustment to PSAK 24 (Revised 2013) (Note 33.)

See accompanying Notes to Consolidated Financial Statements which are an integral part of the Consolidated Financial Statements taken as a whole.


7

PT BUMI TEKNOKULTURA UNGGUL Tbk AND ITS SUBSIDIARIES Consolidated Statements of Financial Position December 31, 2015 with comparative figures December 31, 2014 (Figures are Presented in Rupiah, unless Otherwise Stated)

December 31

December 31

December 31 LIABILITIES AND EQUITY CURRENT LIABILITIES Trade payable Bank loan - short term Accrued expenses Taxes payables Advance received Current maturities of long-term liabilities Bank Loan Finance lease TOTAL CURRENT LIABILITIES NON-CUIRRENT LIABILITIES Long-term liabilities - net of current maturities Bank loan Finance lease Other payables Third parties Related parties Employee benefits obligation TOTAL NON- CURRENT TOTAL LIABILITIES EQUITY Share capital - authorized of 3,200,000,000 shares with par value of Rp 100 per shares issued and fully paid of 1,102,977,500 shares Additional paid - in capital Other equity component- Actuary gains (losses) Deficit Equity attributable to owners of the Company Non-controlling interests TOTAL EQUITY - NET TOTAL LIABILITIES AND EQUITY

*) After the transition adjustment to PSAK 24 (Revised 2013) (Note 33)


8


PT BUMI TEKNOKULTURA UNGGUL Tbk AND ITS SUBSIDIARIES Consolidated Statements of Comprehensive Income For the year ended December 31, 2015 with comparative figures year ended December 31, 2014 (Figures are Presented in Rupiah, unless Otherwise Stated)

Notes

December 31, 2015

December 31, 2014 Revenue Cost of goods sold Gross income Operating expense Selling General administration Total Operating income Other income (charges) Interest income Interest expense Bank administration Goodwill decrease Others Other income ( charges) - net Profit (loss) before tax Tax income (expense) Current tax Deferred tax Net income (loss) Other comprehensive income Gain (loss) acturial Total comprehensive loss Total lncome (loss) For the year Attributable to: Owners of the Parent Non-Controlling Interests Total Total Comprehensive income (loss) for the year attributable to: Owners of the Parent Non-Controlling Interests Total Earnings (loss) per share



9

PT BUMI TEKNOKULTURA UNGGUL Tbk AND ITS SUBSIDIARIES Consolidated Statements of Changes in Equity For the year ended December 31, 2015 with comparative figures year ended December 31, 2014 (Figures are Presented in Rupiah, unless Otherwise Stated)

Notes

Paid -up capital stock

Additional paid - in capital

Deficit

Other equity component

Total equity attributable to owners of the parent

Non- controlling interest

Total equity Balance January 1, 2014

Actuary gains (losess) Comprehensive loss Balance December 31, 2014

Actuary gains (losess) Comprehensive income Balance December 31, 2015

10


PT BUMI TEKNOKULTURA UNGGUL Tbk AND ITS SUBSIDIARIES Consolidated Statements of Cash Flows For the year ended December 31, 2015 with comparative figures year ended December 31, 2014 (Figures are Presented in Rupiah, unless Otherwise Stated)

December 31, 2015

December 31, 2014 CASH FLOW FROM OPERATING ACTIVITIES Cash receipts from customers Cash payments to: Supplier Employees Received from (payment for) other other activities Cash provided by (used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of fixed assets Cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Payment of lbank loan Receipts (payment) of finance lease Received of other payables Net Cash provided by Financing Activities Net increase (decrease) cash and cash equivalents Cash and cash equivalents at beginning of year CASH AND CASH EQUIVALENT AT END OF YEAR



11

PT BUMI TEKNOKULTURA UNGGUL Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements For the year ended December 31, 2015, with comparative figures year ended December 31, 2014 (Figures are Presented in Rupiah, unless Otherwise Stated)

1.

General a.

Establishment and General Information PT. Bumi Teknokultura Unggul, Tbk ("The Company") was established in Indonesia based on No. 12 dated June 6, 2001 of Rusman., S.H. the substitute notary of Eliza Asmawel, S.H., and amended with Notarial Deed No. 10 dated March 5, 2002 of Eliza Asmawel, S.H. The deed establishment has been approved by the Ministry of Justice and Human Rights of the Republic of Indonesia in its Decision Letter No. C06880.HT.01.01.TH.2002 dated April 23, 2002 and was registered in the Companies Registration Offiece Municipality of South Jakarta No. 880/BH.09.03/V/2002, and also has been published in the State Gazette of the Republic of Indonesia No. 80 dated October 7, 2003, supplement No. 9565. The Company's Articles of Association have been amended several times, most recently by Notarial Deed No. 47 dated June 9, 2015 of Desman, S.H., M.Hum., M.M concerning the change in the Company's Articles of Association in order to meet the provision ofthe Financial Services Authority (OJK). The deed has been approved in accordance with the decree of the Minister of Justice and Human Rights of the Republic of Indonesia in Decree No. AHU0938900.AH.01.02 year 2015. On approval of amendments to the article of association of the Company. In accordance with article 3 of the Company’s Articles of Association, the scope of its activity is engaged in agricultural biotechnology. Forest Concession Rights, Planting Forest Industry, Trading, etc. The Company's head office is located at Rukan Komplek Permata Senayan, Blok E No. 37-38 Jl. Tentara Pelajar, Jakarta Selatan 12210, while the location of its activities in Jl. Raya Otonom, Pasar Kemis, Cikupa, Tangerang. The Company started its commercial activies in June 2001.

12


PT BUMI TEKNOKULTURA UNGGUL Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements-continued For the year ended December 31, 2015, with comparative figures year ended December 31, 2014 (Figures are Presented in Rupiah, unless Otherwise Stated)

As of December 31, 2015 , the Company and subsidiaries (Collectively referred to as the "Group" has several forest concession rights located in Irian Jaya detail with the following details (unaudited):

(Hectar)

Original term (years)

Remaining term (years)

Virgin forest (Hectar)

No and date decision letter covering the forest Concession rights Company PT Bumi Teknokultura Unggul Tbk Subsidiaries PT Bangun Kayu Irian No.SK.623/Menhut-II/2014 dated July 14,2014 PT Mitra Pembangunan Global No: SK.714/MENHUT-VI/ 2009 dated 19 October

b.

Public Offering of Shares and Bonds In 2004, the Company made a public offering of its shares to the public of 120.000.000 shares with a nominal value of Rp 100 per share with offering price of Rp 125 per share and accompanied by the issuance of Warrant Series I of 276.000.000 as an incentive with a nominal value of Rp 100 per share with an exercise price of Rp 125 per share. Purchases can be made during the offering period which bagan on November 1 2004 unti May 13, 2007. Each warrant entitled the holder to purchase one share of the Company. if the warrants are not excecuted until the validity period expires, then, these warrants were obsolete. The Company's shares public offering has been registered to the Capital Market Supervisiory Agency (BAPEPAM*) on February 19, 2004 and has been listed on the Indonesia Stock Exchange on May 31,2004. The Public offering of shares has obtained permission from the Chairman of BAPEPAM in its Decision Letter No. S-1 102/PM/2004 dated April 29, 2004.


13


Starting December 31, 2012, the functions, duties and authorities of regulating and monitoring the service activities in capital market sector, insurance, pension fund, multi-finance, and other financial services were transferred from the Minister of Finance, and the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) to the Financial Services Authority (OJK).

c.

Consolidated Subsidiaries As of December 31, 2015 and 2014, the subsidiaries which were consolidated, including the respective percentages of ownership held by the Company, are as follows:

Ownership

Subsidiary

Domicile

Nature of Business

Year of December 31, 2015 and Incorporation December 31, 2014

d.

Total Assets (Before Elimination) December 31

Employees, Directors, Commissioners

December 31,

and

Board

of

The Boards of Commissioners and Directors of the Company as of December 31, 2015 and 2014 based on Notarial Deed of Desman, S.H., M. Hum. No. 46 dated July 12, 2013 are as follows:

Board of Commissioners President Commissioner Commissioners Independent Commissioner Directors President Director Directors

As a public company, the Company has Independent Commissioner and an Audit Committee as required by Bapepam-LK (currently Financial Services Authority/OJK).

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According to Decree of The Board of Commissioners of The Company, No. 001/Dekom/BTEK/II/2015 dated February 17, 2015 concerning dismissal and appointment of members of the audit Committee. The Composition for the period ended December 31, 2015 are as follows: Chairman Member Member

The Composition for the period ended December 31, 2014 are as follows: Chairman Member Member

Key management personel of the Company consists of Commissioners and Directors. As of December 31, 2015 and 2014, total number of permanent employees (unaudited) is 230 and 227, respectively. The consolidated financial statements of PT Bumi Teknokultura Unggul Tbk and its subsidiaries for the year ended December 31, 2015 were completed and authorized for issuance on February 29, 2016 by the Company’s Directors who are responsible for the preparation and the presentation of the consolidated financial statements.

2.

Summary of Significant Accounting and Financial Reporting Policies a.

Statement of Compliance The consolidated financial statements have been prepared in accordance with Indonesian Financial Accounting Standards. These consolidated financial statements are not intended to present the financial position, results of preparations and cash flows in accordance with accounting principles and reporting practices generally accepted in other countires and jurisdictions.


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b.

Basis of Consolidated Financial Statements Preparation and Measurement The consolidated financial statements have been prepared and presented in accordance with Indonesian Financial Accounting Standards “SAK”, which comprise the statements and interpretations issued by the Board of Financial Accounting Standards of the Indonesian Institute of Accountants and OJK Regulation No. VIII.G.7. regarding “Presentation and Disclosures of Public Companies’ Financial Statements”. The measurement basis used is the historical cost, except for certain accounts which are measured on the bases described in the related accounting policies. The consolidated financial statements, except for the consolidated statements of cash flows, are prepared under the accrual basis of accounting. For financial reporting purposes, fair value measurements are categorized into level 1,2 and 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows; Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at measurement date; Level 2 inputs are inputs, other than quoted prices included within level 1, that are observable for the asset or liability, either directly or indirectly; and Level 3 inputs are unobservable inputs for the assets or liability. The consolidated statements of cash flows are prepared using the direct method with classifications of cash flows into operating, investing, and financing activities. The reporting currency used in the preparation of the consolidated financial statements is the Indonesian Rupiah (Rupiah) which is also the functional currency of the Company.

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c.

investee investee

investee

investee

investee investee

investee

Basis of Consolidation The consolidated financial statements incorporate that financial statements of the Company and entities (including structured entities) controlled by the Company and its subsidiaries. Control is achieved where the Company has the power over the investee; is exposed, or has rights, to variable returns from its involment wih the investee; and has the ability to use its power to affect its returns.

The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above. When the Company has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Company considers all relevant facts and circumstances in assessing whether or not the Company’s voting rights in an investee are sufficient to give it power, including (i) the size of the Company’s holding of voting rights relative to the size and dispersion of holding of the other vote holders; (ii) potential voting rights held by the Company, other vote holders or other parties; (iii) rights arising from other contractual arrangements; and (iv) any additional facts and circumstances that indicates that the Company has, or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings. Consolidation of subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Specially, income and expense of a subsidiary acquired or disposed of during the year are included in the consolidated statement of profit or loss and other comprehensive income from the date the Company gains control until the date when the Company ceases to control the subsidiary.


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Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the noncontrolling interest. Total comprehensive incomes are attributed to owners of the Company and the non-controlling interest even if this results in the non-controlling interest having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group’s accounting policies. All intra group assets and liabilities, equity, income, expenses and cash flows relating to transaction between members of the Group are eliminated in full on consolidation. Changes in the Group’s ownership interest in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Group’s interest and the non-controlling interest are adjusted to reflect the changes in their relative interest in the subsidiaries. Any difference between the amount by which the non-controlling interest are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to owners of the Company.

goodwill

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When the Group losses control of a subsidiary a gain or loss recognized in profit or loss and is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interest. All amounts previously recognized in other comprehensive income in relation to that subsidiary are accounted for as if the Group had directly disposed of the related assets or liabilities of the subsidiary (i,e reclassified to profit or loss or transferred to another category of equity specified/permitted by applicable accounting standards). The fair value of any investment retained in the former subsidiary at the date when control is


lost is regarded as the fair value on initial recognition for subsequent accounting under PSAK 55, financial Instruments; Recognition and Measurement or, when applicable, the cost on initial recognition of an investement in an associate or a jointly controlled entitiy.

d.

Accounting for Business Combination Among Entities Not Under Common Control Business combinations, except business combination among entities under common control, are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, measured at acquisition date fair value and the amount of any NCI in the acquiree. For each business combination, the acquirer measures the NCI in the acquiree either at fair value or at the proportionate share of the acquiree’s identifiable net assets. Acquisition related costs incurred are directly expensed and included in administrative expenses. When the Group acquires a business, it assesses the financial assets acquired and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as of the acquisition date. If the business combination is achieved in stages, the acquisition date fair value of the acquirer’s previously held equity interest in the acquiree is remeasured to fair value at the acquisition date through profit or loss.

Any contingent consideration to be transferred by the acquirer is recognized at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration which is deemed to be an asset or liability is recognized in accordance with PSAK No. 55 either in profit or loss or as other comprehensive income. If the contingent consideration is classified as equity, it is not measured until it is finally settled within equity.


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goodwill

goodwill goodwill

goodwill goodwill

Goodwill

At acquisition date, goodwill is initially measured at cost being the excess of the aggregate of the consideration transferred and the amount recognized for NCI over the net identifiable assets acquired and liabilities assumed. If this consideration is lower than the fair value of the net assets of the subsidiary acquired, the difference is recognized in profit or loss. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Company and/or its subsidiaries’ cash-generating units (“CGU”) that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquired are assigned to those CGUs. Where goodwill forms part of a CGU and part of the operation within that CGU is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed of in this circumstance is measured based on the relative values of the operation disposed of and the portion of the CGU retained. Business Combinaion Under Common Control Entities under common control are parties which directly or indirectly (through one or more intermediaries) control, or are controlled by or are under the same control. Business combination of entities under common control is a business combination of all entities or combined businesses, which are ultimately controlled by the same party (prior or subsequent to the business combination), in which the control is not temporary. Business combination transaction of entities under common control in form of business transfer with regard to reorganization of

20



entities within the same group of companies does not result in a change of the economic substance of the ownership, in which the transaction does not incur gain or loss to the group as a whole or to the individual company within the group. Therefore, the transaction is recognized at carrying value based on pooling of interest method.

Any difference between amount of consideration transferred and the carrying value of each business combination of entities under common control is recognized as additional paid-in capital as part of equity section in the consolidated statement of financial position. e.

Foreign Currency Translation Functional and Reporting Currencies Items included in the financial statements of each of the Group’s companies are measured using the currency of the primary economic environment in which the entity operates (the functional currency). The consolidated financial statements are presented in Rupiah which is the Company’s functional and presentation currency. Transactions and Balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the consolidated statement of comprehensive income. As of December 31, 2015 and 2014, the Bank Indonesia middle rates used were Rp 13,795 and Rp 12,440 to 1 United States Dollars, respectively.


21


f.

Transactions with Related Parties A related party is a person or entity that is related to the Group: 1.

2.

A person or a close member of that person's family is related to the Group if that person: (i)

has control or joint control over the Group;

(ii)

has significant influence over the Group; or

(iii)

is a member of the key management personnel of the reporting entity or of a parent of the Group.

An entity is related to the Group if any of the following conditions applies: a) the entity and the Group are members of the same group; b) one entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member);

c) both entities are joint ventures of the same third party; d) one entity is a joint venture of a third entity and the other entity is an associate of the third entity; e) the entity is a post-employment defined benefit plan for the benefit of employees of either the Group or an entity related to the Group. If the Group is itself such a plan, the sponsoring employers are also related to the Group; f) the entity is controlled or jointly controlled by a person identified in (a); or

22



g) a person identified in (1) (a) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity); All significant transactions with related parties are disclosed in the consolidated financial statements. g.

Cash Cash consists of cash on hand and in banks. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash with original maturities of three (3) months or less from the date of placements, and which are not used as collateral and are not restricted.

h.

Financial Instruments All regular way purchases and sales of financial instruments are recognized on the transaction date. The Group recognizes a financial asset or a financial liability in the consolidated statement of financial position if, and only if, it becomes a party to the contractual provisions of the instrument. All regular way purchases and sales of financial instruments are recognized on the transaction date. Financial instruments are recognized initially at fair value, which is the fair value of the consideration given (in case of an asset) or received (in case of a liability). The fair value of the consideration given or received is determined by reference to the transaction price or other market prices. If such market prices are not reliably determinable, the fair value of the consideration is estimated as the sum of all future cash payments or receipts, discounted using the prevailing market rates of interest for similar instruments with similar maturities. The initial measurement of financial instruments, except for financial instruments at fair value through profit and loss (FVPL), includes transaction costs.


23


Transaction costs include only those costs that are directly attributable to the acquisition of a financial asset or issue of financial liability and they are incremental costs that would not have been incurred if the instrument had not been acquired or issued. Such transaction costs are amortized over the terms of the instruments based on the effective interest rate method. Effective interest rate method is a method of calculating the amortized cost of a financial asset or a financial liability and allocating the interest income or expense over the relevant period by using an interest rate that exactly discounts estimated future cash payments or receipts through the expected life of the instruments or, when appropriate, a shorter period to the net carrying amount of the financial instruments. When calculating the effective interest, the Group estimates future cash flows considering all contractual terms of the financial instruments excluding future credit losses and includes all fees and points paid or received that are an integral part of the effective interest rate.

Amortized cost is the amount at which the financial asset or financial liability is measured at initial recognition, minus principal repayments, plus or minus the cumulative amortization using the effective interest rate method of any difference between the initial amount recognized and the maturity amount, minus any reduction for impairment.

The classification of the financial instruments depends on the purpose for which the instruments were acquired and whether they are quoted in an active market. At initial recognition, the Group classifies its financial instruments in the following categories: financial assets at FVPL, loans and receivables, held-to-

24



maturity (HTM) investments, available for sale (AFS) financial assets, financial liabilities at FVPL, and other financial liabilities; and, where allowed and appropriate, re-evaluates such classification at every reporting date.

Determination of Fair Value

ask price bid price

(net present value) (options

pricing

models)

(bid price) ask price

The fair value of financial instruments traded in active markets at the consolidated statements of financial position date is based on their quoted market price or dealer price quotations (bid price for long positions and ask price for short positions), without any deduction for transaction costs. When current bid and asking prices are not available, the price of the most recent transaction is used since it provides evidence of the current fair value as long as there has not been a significant change in economic circumstances since the time of the transaction. For all other financial instruments not listed in an active market, the fair value is determined by using appropriate valuation techniques. Valuation techniques include net present value techniques, comparison to similar instruments for which market observable prices exist, options pricing models, and other relevant valuation models. As of December 31, 2015 and 2014, the Group has financial instruments under loans and receivable and other financial liabilities categories. Thus, accounting policies related to financial assets at FVPL, HTM investments,AFS financial assets and financial liabilities at FVPL were not disclosed.

Financial Assets Loans and Receivables non-derivatif

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are not entered into with the


25


intention of immediate or short-term resale and are not classified as financial assets at FVPL, HTM investments or AFS financial assets.

After initial measurement, loans and receivables are subsequently measured at amortized cost using the effective interest rate method, less allowance for impairment. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees and costs that are an integral part of the effective interest rate. The amortization is included as part of interest income in the consolidated statement of comprehensive income. The losses arising from impairment are recognized in the consolidated statement of comprehensive income. As of December 31, 2015 and 2014, the Group classifies its cash and cash equivalents, trade accounts receivable, and other accounts receivable in this category. Equity Instruments An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.

Financial Liabilities Other Financial Liabilities This category pertains to financial liabilities that are not held for trading or not designated at FVPL upon the inception of the liability. Issued financial instruments or their components, which are not classified as financial liabilities at FVPL are classified as other financial liabilities, where the substance of the contractual arrangement results in the Group having an obligation either to deliver cash or another financial asset to the holder, or to satisfy the obligation other than by the exchange of a

26



fixed amount of cash or another financial asset for a fixed number of own equity shares. Other financial liabilities are recognized initially at fair value and are subsequently carried at amortized cost, taking into account the impact of applying the effective interest method of amortization (or accretion) for any related premium, discount, and any directly attributable transaction costs. As of December 31, 2015 and 2014, the Group’s bank loans, trade accounts payable - third parties, accrued expenses, other accounts payable - third parties and finance lease liabilities are included in this category. Off setting of Financial Instruments Financial assets and financial liabilities are offset and the net amount presented in the consolidated statement of financial positions if, and only if, there is a currently enforceable right to offset the recognized amounts and there is intention to settle on a net basis, or to realize the asset and settle the liability simultaneously.

Impairment of Financial Assets The Group’s management assesses at each statement of financial position date whether a financial asset or group of financial assets is impaired. The management first assesses whether objective evidence of impairment exists individually for financial assets that are individually significant, or collectively for financial assets that are not individually significant. If the management determines that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, the asset is included in a group of financial assets with similar credit risk characteristics and that group of financial assets is collectively assessed for impairment. Assets that are individually assessed for impairment and for which an impairment loss, is or continues to be recognized are not included in a collective assessment of impairment.


27


If there is objective evidence that an impairment loss on loans and receivables carried at amortized cost has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate (i.e., the effective interest rate computed at initial recognition). The carrying amount of the asset is reduced either directly or through the use of an allowance account. The amount of loss is charged to the consolidated statement of comprehensive income. If, in a subsequent year, the amount of the impairment loss decreases because of an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed. Any subsequent reversal of an impairment loss is recognized in the consolidated statement of comprehensive income, to the extent that the carrying value of the asset does not exceed its amortized cost at the reversal date.

Derecognition Liabilities 1)

of

Financial

Assets

and

Financial asset (or, where applicable, a part of a financial asset or part of a Group of similar financial assets) is derecognized when: a. the rights to receive cash flows from the asset have expired; b. the Group retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without material delay to a third party under a “pass-through” arrangement; or

28



c. The Group has transferred its rights to receive cash flows from the asset and either (i) has transferred substantially all the risks and rewards of the asset, or (ii) has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. Where the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, and has neither transferred nor retained substantially all the risks and rewards of the asset nor transferred control of the asset, the asset is recognized to the extent of the Group’s continuing involvement in the asset. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Group could be required to repay.

2)

Financial Liabilities A financial liability is derecognized when the obligation under the contract is discharged, cancelled or has expired. Where an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability. The recognition of a new liability and the difference in the respective carrying amounts is recognized in the consolidated statement of comprehensive income.

i.

Inventories Inventories are stated at cost or net


29


value

realizable value, whichever is lower. Cost is determined using the weighted average method.

the lower of cost and net realizable

Allowance for inventory obsolescence anddecline in value of the inventories areprovided to reduce the carrying value ofinventories to their net realizable values. Net realizable value is an estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. j.

Prepaid Expenses Prepaid expenses are amortized over their beneficial periods using the straight-line method.

k.

Fixed Assets Direct acquisitions of fixed assets, except for land, are stated at cost, less accumulated depreciation and any impairment in value. Land is stated at cost less any impairment in value and is not depreciated.

The initial cost of fixed assets consists of its purchase price, including import duties and non-refundable taxes and any directly attributable costs in bringing the fixed assets to its working condition and location for its intended use.

Initial legal costs incurred to obtain legal rights are recognized as part of the acquisition cost of the land, and these costs are not depreciated. Costs related to renewal of land rights are recognized as intangible assets and amortized during the period of the land rights. Expenditures incurred after the fixed assets have been put into operations, such as repairs and maintenance costs, are normally charged to operations in the year such costs are incurred. In situations where it can be clearly demonstrated that the expenditures have resulted in an increase in the future economic benefits expected to be obtained

30



from the use of the fixed assets beyond its originally assessed standard of performance, the expenditures are capitalized as additional costs of fixed assets. Depreciation is computed on a straight-line basis over the fixed assets useful lives as follows:

straight-line method Years

Buildings and infrastructure Vehicles Laboratory equipment Office supplies and equipment Acclimatization equipments Maturation equipments

The carrying values of fixed assets are reviewed for impairment when events or changes in circumstances indicate that the carrying values may not be recoverable. When each major inspection is performed, its cost is recognized in the carrying amount of the item of fixed assets as a replacement if the recognition criteria are satisfied. Such major inspection is capitalized and amortized over the next major inspection activity.

derecognized

An item of fixed assets is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gains or loss arising from derecognition of fixed assets (calculated as the difference between the net disposal proceeds, if any, and the carrying amount of the item) is included in the consolidated statement of comprehensive income in the year the item is derecognized.

The asset’s residual values, if any, useful lives and depreciation and amortization method are reviewed and adjusted if appropriate, at each financial year end. Construction in Progress Construction assets under cost and accumulated

in progress represents fixed construction which is stated at is not depreciated. The costs are reclassified to the


31


respective fixed assets account and depreciated when the construction is substantially complete and the asset is ready for its intended use. l.

Intangible assets

Goodwill

Goodwill

Goodwill

Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of the net identifiable assets of the acquired subsidiary at the date of acquisition. Goodwill on acquisitions of subsidiaries is included in “Goodwill” account. Goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. Impairment losses on goodwill are not reversed. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.

Goodwill Goodwill

Goodwill goodwill

goodwill Goodwill

goodwill

Goodwill is allocated to Cash Generating Unit (UPK) for the purpose of impairment testing. The allocation is made to those UPK or groups of UPK that are expected to benefit from the business combination in which the goodwill arose. m. Lease Transactions The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement at inception date of whether the fulfillment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset. A reassessment is made after inception of the lease only if one of the following applies: a) there is a change in contractual terms, other than a renewal or extension of the agreement;

b) a renewal option is exercised or extension granted, unless the term of the

32



renewal or extension was included in the lease term;

initially

c) there is a change in the determination of whether the fulfillment is dependent on a specified asset; or d) there is a substantial change to the asset. Where a reassessment is made, lease accounting shall commence or cease from the date when the change in circumstances gave rise to the reassessment for scenarios a, c or d and the date of renewal or extension period for scenario b. Leases which transfer to the Group substantially all the risks and benefits incidental to ownership of the leased item, are capitalized at the inception of the lease at the fair value of the leased property or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest in the remaining balance of the liability. Finance charges are charged directly against consolidated statements of comprehensive income. Capitalized leased assets are depreciated over the estimated useful life of the assets except if there is no reasonable certainty that the Group will obtain ownership by the end of the lease term, in which case the lease assets are depreciated over the shorter of the estimated useful life of the assets and the lease term. Operating lease payments are recognized as an expense in the consolidated statements of comprehensive income on a straight-line basis over the lease term. n.

Dividend Distribution Dividend distribution to the Group’s shareholders is recognised as a liability in the consolidated financial statements in the period in which the dividends are approved by the Group’s shareholders.


33


o.

Impairment of Non-Financial Assets The Group assesses at each annual reporting period whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Group makes an estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or Cash Generating Unit’s (CGU’s) fair value less costs to sell and its value in use, and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. Impairment losses of continuing operations are recognized in the consolidated statements of comprehensive income as “impairment losses”. In assessing the value in use, the estimated net future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, recent market transactions are taken into account, if available.

(valuation multiples

If no such transactions can be identified, an appropriate valuation model is used to determine the fair value of the assets. These calculations are corroborated by valuation multiples or other available fair value indicators. Impairment losses are recognized in the consolidated statements of comprehensive income under expense categories that are consistent with the functions of the impaired assets. An assessment is made at each annual reporting period as to whether there is any indication that previously recognized impairment losses recognized for an asset may not longer exist or may have

34



decreased. If such indication exists, the recoverable amount is estimated. A previously recognized impairment loss for an asset is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognized. If that is the case, the carrying amount of the asset is increased to its recoverable amount. The reversal is limited so that the carrying amount of the assets does not exceed its recoverable amount nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Reversal of an impairment loss is recognized in the consolidated statement of comprehensive income. After such a reversal, the depreciation charge on the said asset is adjusted in future periods to allocate the asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life. p.

Deferred Costs of Forest Concession Rights Costs and expenses incurred in obtaining forest concession rights,such as, among others, forest concession fees, and costs of environmental evaluation and analysis, air photo survey and planning, are capitalized and amortized over the economic terms of the concession rights using the straight-line method over the terms of the concession rights.

q.

Shares Issuance Costs Shares issuance costs are deducted from the additional paid in capital portion of the related proceeds from issuance of shares and are not amortized.

r.

Revenue and Expense Recognition Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized. Revenue from sales are recognized when goods are delivered to the customers. Revenue is measured as the fair value of the consideration received or receivable for the


35


sale of goods in the ordinary course of the Group’s activities. Revenue is shown net of value-added tax, returns, rebates and discounts. Interest income and interest expense for all financial instruments are recognized in the consolidated statement of comprehensive income on accrual basis using the effective interest rate method. basis)

(accrual

Expenses are recognized when incurred (accrual basis). Transaction costs incurred and are directly attributable to the acquisition or issuance of financial instruments not measured at FVPL are amortized over the life of financial instruments using the effective interest rate method and recorded as part of interest income for transaction costs directly attributable to financial assets and as part of interest expense for transaction costs related to financial liabilities.

s.

Borrowing Costs Borrowing costs are interest and exchange difference on foreign currency denominated borrowings and other costs (amortization of discounts/premiums on borrowings, etc.) incurred in connection with the borrowing of funds. Borrowing costs which are directly attributable to the acquisition, construction, or production of qualifying assets are capitalized as part of the acquisition cost of the qualifying assets. Other borrowing costs are recognized as an expense in the period in which they are incurred. To the extent that the Group borrows funds specifically for the purpose of obtaining a qualifying asset, the Company determines the amount of borrowing costs eligible for capitalization as the actual borrowing costs incurred on that borrowing during the year less any investment income on the temporary investment of those borrowings. The Group suspends capitalization of borrowing costs during extended periods in

36



which it suspends active development of a qualifying asset. The Group ceases capitalizing borrowing costs when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are complete. t.

Liability for post-employment benefits Starting January 1, 2015, the Company adopted PSAK No. 24 (Revised 2013),“Employee Benefits”, which regulates accounting treatment and disclosure employee benefits, for both short-term and long-term employee benefits. The Company recognizes employee benefits under formal and informal programs or agreements, under legislative requirements or through industry arrangements, including post employment benefits and termination benefits. The Company made provisions in order tomeet the minimum benefits required to be paidto the qualified employees under Labor LawNo. 13/2003 (the “Labor Law”). The said provisions are estimated using actuarial calculations using the “Projected Unit Credit” method.

The estimated liabilities as of the statement offinancial position date represents the presentvalue of the defined benefit obligation as of the statement of financial position date less thefair value of plan assets. The post-employment benefits expense recognized during the current period consists of service cost in profit and loss, net interest on the net defined benefit liability in profit and loss and remeasurement of the net defined benefit liabilities in other comprehensive income. Remeasurements of the net defined benefit liability consists of: 1. Actuarial gains and losses. 2. Return on plan assets, excluding amount included in net interest on the net definedbenefit liability.


37


Any change in effect of the assetceiling,excluding amount including in net intereston the net defined benefit liability. Deferred recognition of actuarial gains and losses is not allowed. Actuarial gains and losses are recognised directly in other comprehensive income component in equity and can be transferred to other post within equity. u.

Share-Based Payments The Group operates certain equity-settled, share-based compensation plans, under which the entity receives services from employees as consideration for equity instruments (stock options) of the Group. The fair value of the options is recognized as an expense with a corresponding increase in equity. The total amount to be charged as an expense is determined by reference to the fair value of the options granted: including any conditions;

non-market

vesting non-

vesting

non-market vest

vesting

vesting

vest

market

performance

excluding the impact of any service and non-market performance vesting conditions; and Including the impact of any non-vesting conditions. Non-market performance and service conditions are included in assumptions about the number of options that are expected to vest. The total expense is recognized over the vesting period, which is the period over which all the specified vesting conditions are to be satisfied. At the end of each reporting period, the Group revises its estimates of the number of options that are expected to vest based on the market conditions. It recognizes the impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to equity. When the options are exercised, the Company issues new shares. The proceeds received, net of any directly attributable transaction costs, are credited to share capital (nominal value) and share premium.

38



v.

Income Tax Current tax expense is determined based on the taxable income for the year computed using prevailing tax rates. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and the carryforward tax benefit of unused tax losses (fiscal losses). Deferred tax liabilities are recognized for all taxable temporary differences and deferred tax assets are recognized for deductible temporary differences and the carryforward tax benefit of unused fiscal losses to the extent that it is probable that taxable income will be available in future periods against which the deductible temporary differences can be utilized and the carryforward tax benefit of unused fiscal losses can be applied. Deferred tax is calculated at the tax rates that have been enacted or substantively enacted at statements of financial position date. Deferred tax is charged to or credited in the consolidated statements of comprehensive income, except when it relates to items charged to or credited directly in equity, in which case the deferred tax is also charged to or credited directly in equity. Deferred tax assets and liabilities are offset in the consolidated statement of financial position, except if these are for different legal entities, in the same manner the current tax assets and liabilities are presented. Amendments to tax obligations are recorded when an assessment is received or, if appealed against by the Group, when the result of the appeal is determined.

w. Earnings per Share Basic earnings per dividing net income the Company by number of shares year.

share are computed by attributable to owners of the weighted average outstanding during the


39


x.

Segment Information Segment information is prepared using the accounting policies adopted for preparing and presenting the consolidated financial statements. Operating segments are identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief operating decision maker in order to allocate resources to the segments and to assess their performances. An operating segment is a component of an entity: a)

that engages in business activities which it may earn revenue and incur expenses (including revenue and expenses relating to the transaction with other components of the same entity);

b)

whose operating results are reviewed regularly by the entity’s chief operating decision maker to make decision about resources to be allocated to the segments and assess its performance; and

c)

for which discrete financial information is available.

Information reported to the chief operating decision maker for the purpose of resources allocation and assessment of its performance is more specifically focused on the category of each product, which is similar to the business segment information reported in the prior period. y.

Events after the Reporting Date Post year-end events that provide additional information about the consolidated statement of financial position at the reporting date (adjusting events), if any, are reflected in the consolidated financial statements. Post year-end events that are not adjusting events are disclosed in the notes to consolidated financial statements when material.

40



3.

Management Use of Estimates, Judgments and Assumptions In the application of the Group’s accounting policies, which are described in note 2 to the consolidated financial statements, management is required to make estimates, judgments, and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and assumptions are based on historical experience and other factors that are considered to be relevant. Management believes that the following represent a summary of the significant estimates, judgments, and assumptions made that affected certain reported amounts of and disclosures in the consolidated financial statements:

Judgments The following judgments are made by management in the process of applying the Group’s accounting policies that have the most significant effects on the amounts recognized in the consolidated financial statements: a.

Functional Currency The functional currency of the Company and its subsidiaries is the currency of the primary economic environment in which each of them operates. It is the currency, among others, that mainly influences sales prices for goods and services, and of the country whose competitive forces and regulations mainly determine the sales prices of its goods and services, and the currency in which funds from financing activities are generated.

b.

Classification of Financial Financial Liabilities

Assets

and

The Group determines the classifications of certain assets and liabilities as financial assets and financial liabilities by judging if they meet the definition set forth in PSAK No. 55. Accordingly, the financial assets and financial liabilities are accounted for in accordance with Group’s accounting policies disclosed in Note 2.


41


c.

Impairment of Financial Assets The Group assesses specifically at each consolidated statement of financial position date whether there is objective evidence that a financial asset is impaired (uncollectible). If there is objective evidence of impairment, timing and collectible amounts are estimated based on historical loss data. Any allowance for impairment is provided on accounts specifically identified as impaired. The level of allowance is based on past collection experience and other factors that may affect collectability such as the probability of insolvency or significant financial difficulties of the debtors or significant delay in payments. Evaluation of receivables to determine the total allowance to be provided is performed periodically during the year. Therefore, the timing and amount of any allowance for impairment recorded at each period might differ based on the judgments and estimates that have been used.

d.

Lease Commitments Finance lease commitments-Group as Lessee

lessee

The Group has entered into commercial vehicles and equipment leases. The Group has determined that these are finance leases since it bears substantially all the significant risks and benefits incidental to the ownership of these properties. e.

Income Taxes Significant judgment is required in determining the provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain. The Group recognizes liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final

42



tax outcome of these matters is different from the amounts that were initially recorded, such differences will have an impact on the current and deferred income tax assets and liabilities in the period in which such determination is made. Estimates and Assumptions The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial period are disclosed below. The Group based its assumptions and estimates on parameters available when the consolidated financial statements were prepared. Existing circumstances and assumptions about future developments may change due to market changes on circumstances arising beyond the control of the Group. Such changes are reflected in the assumptions when they occur: a.

Fair Value of Financial Assets and Financial Liabilities The Indonesian Financial Accounting Standards require measurement of certain financial assets and liabilities at fair values, and the disclosure requires the use of estimates. Significant component of fair value measurement is determined based on verifiable objective evidence (i.e. foreign exchange rate, interest rate), while timing and amount of changes in fair value might differ due to different valuation method used.

b.

Estimated Useful Lives of Fixed Assets The useful lives of each of the item of Group’s fixed assets are estimated based on the period over which the asset is expected to be available for use. Such estimation is based on a collective assessment of similar business, internal technical evaluation and experience with similar assets. The estimated useful life of each asset are


43


reviewed periodically and updated if expectations differ from previous estimates due to physical wear and tear, technical or commercial obsolescence, and legal or other limits on the use of the asset. It is possible, however, that future results of operations could be materially affected by changes in the amounts and timing of recorded expenses brought about by changes in the factors mentioned above. A reduction in the estimated useful life of any item of fixed assets would increase the recorded depreciation and decrease the carrying values of these assets.

There is no change in the estimated useful lives of fixed assets during the year. The estimated useful lives of fixed assets are set out in Note 2 to the consolidated financial statements. Goodwill

c.

goodwill

Impairment of Goodwill For goodwill, impairment testing is required to be performed at least annually irrespective of whether or not there are indications of impairment. Determining the value in use of assets requires the estimation of cash flows expected to be generated from the continued use and ultimate disposition of such assets (UPK) and a suitable discount rate in order to calculate the present value. While it is believed that the assumptions used in the estimation of the value in use of assets reflected in the consolidated financial statements are appropriate and reasonable, significant changes in this assumptions may materially affect the assessment of recoverable values and any resulting impairment loss could have a material adverse impact on the the results of Group’s operations.

d.

Impairment of Non-financial Assets Impairment review is performed when

44



certain impairment indicators are present. Determining the fair value of assets requires the estimation of cash flows expected to be generated from the continued use and ultimate disposition of such assets. Any significant changes in the assumptions used in determining the fair value may materially affect the assessment of recoverable values and any resulting impairment loss could have a material impact on results of operations.

e.

Deferred Tax Assets Deferred tax assets are recognized for all temporary differences between the financial statements’ carrying amounts of existing assets and liabilities and their respective taxes bases to the extent that it is probable that taxable profit will be available against which the temporary differences can be utilized. Significant management estimates are required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

4.

Cash

Cash on hand Cash in bank Rupiah PT. Bank Central Asia Tbk PT. Bank Mandiri (persero) Tbk PT. Bank Rakyat Indonesia (persero) Tbk PT. Bank Capital Indonesia Tbk PT. Bank Pembangunan Daerah Papua PT. Bank Permata Tbk Total Total


45


5.

Trade Accounts Receivable The details of trade accounts receivable are as follows: a By Customer

Third parties UD. Wijaya Loka PT. Tunas Karya Gemilang PT. Kayan Jaya Tanjung PT. Harapan Rimba Jaya Total

b. By Age

Not past due and unim paired past due not impaired less than 30 days 31-60 days 61-90 days Total

All trade accounts receivables are denominated in Rupiah. Management believes that all trade accounts receivables are collectible, thus no allowance for impairment was provided. Management believes that there is no significant concentration of credit risk on trade accounts receivable. 6.

Other Accounts Receivable

Related parties PT. Armada Prima Samudra PT. Indoveneer Utama PT. Bentara Arga Timber PT. Asa Forestama Total Third parties Employees Others Total Total

46



All other accounts receivable are denominated in Rupiah. Management believes that all other accounts receivable are collectible, thus no allowance for impairment was provided. 7.

Inventories

Logs Spareparts Plant Supporting materials Total Less allowance impairment value Total

Inventory of plants which located in Bioplant and Biofora divisions, both are in enclosed or open areas at Cikupa, Tangerang and Papua. Based on the review of the net realizable value of inventories and physical condition of inventories at the end of the period, the management of the company believes that the allowances for decline in value of inventory and inventory obsolecence are adequote to cover possible losses arising. The group inventory of plants and logs are not covered by insurance against losses from fire and other risk, as there is no insurance company that is able to provide sufficient coverage. 8.

Advances and Prepaid Expenses

Advance Purchase Business traveling Hak ulayat Povisi fund reforestation and forest resources Total Prepaid expense Insurance Rent Total Total


47


9.

Fixed Assets 2015

January 1, 2015

48


Additions

Deductions

Reclassification

December 31, 2015


2014

January 1, 2014

Additions

Deductions

Reclassification

December 31, 2014

Depreciation expense was allocated as follows:

Cost of good sold Infrastructure road Total

Land with an area of 107.898,5 m2 amounted to Rp 44,500,856,234 which located Jl. Otonom, Pasir Gedung Village, Tangerang. The status of land ownership in from of statement of waiver of land/Girik are still in the process to obtain a Building Use Right (in accordance with the application file receipt of Landrights issued by the National Land Agency Tangerang Regency dated April 23, 2004).


49


In 2015, subsidiaries entered into sale and leaseback agreements with PT Malaca Trust Finance and Finance Tbk PT Batavia Prosperindo on heavy equipment assets with an acquisition cost of Rp 64,086,706,100.

sale and lease back

As of December 31, 2015 and 2014, fixed assets are insured against losses from fire, theft and other property risks as Rp 47,693,600,000 and Rp 30.113.600.000. Management believes that the insurance coverages are adequate to cover possible losses that might arise from such risks on the fixed assets insured. Management believes that there is no impairment in value of the aforementioned fixed assets as December 31, 2015 and 2014. Goodwill

10. Goodwill

Cost Accumulated impairment losses Carrying amount Changes in the accumulated impairment losses Beginning balance Impairment losses recognized during the year Ending balance

goodwill

Goodwill

50


On June 25, 2013, The Company acquired PT . Bangun Kayu Irian (Note 1). At the effective date of the acquisition, the excess of acquisition cost over the fair value of identifiable assets and liabilities acquired amounting to Rp 42,373,077,428 was recorded as part of goodwill.

On June 25, The Company acquired PT. Mitra Pembangunan Global. At the effective date of the acquisition, the excess of acquisition cost under the fair value of identifiable assets and liabilities acquired amounting to Rp 1,845,381,514. Negative goodwillis recognizedas a gain in income for the year.


goodwill

In 2014, management did testing for impairment of goodwill based on an independent appraisal report Rp 1.388.158.424. Pos gains and losses on the impairment is included in"other gains and losses" in the consolidated statement of comprehensive income. For the year ended December 31, 2015, management does not undertake impairment testing of goodwill. 11. Other Assets

Rights of forest management Business licences fee (IUPHHK-HA) Total

12. Account Payables

PT. Bahana Line PT. Anugrah Sejati TK. Citra Sakti Manunggal PT. Kebun PT Esa PT. Mandala Traktor PT. Pelumas Unggul Jaya PT. expedisi Meyke Waladow PT. Sarana Angkat TK. Makmur PT. Bumi Indah TK. Inti TK Indo Papua TK. Semeru Indah TK. Tripa PT. Indolift Perkasa Total

13. Bank Loans – Short term

Short term bank loans Third parties Rupiah PT. Bank Mayapada International Tbk Total

Based rapprochement No. 171/Pers/MTO/VI/2015 dated June 9, 2015 between PT. Bank Mayapada


51


Internasional Tbk and PT. Bangun Kayu Irian (BKI).

Based rapprochement No. 188/Pers/MTO/VI/2015 dated June 19, 2015 between PT. Bank Mayapada Internasional Tbk and PT. Mitra Pembangunan Global (MPG).

14. Accrued Expenses

Wages and fees Bank provision Jamsostek Rent Telephone, electric and water Interest Profesional fee Others Total

15.

Income taxes: article 23 article 21 Value added tax Total

self assessment

52


The filing of tax returns is based on the Company and its subsidiaries’ own calculation of tax liabilities (self assessment). Based on the Third Amendment of the General Taxation Provisions and Procedures No. 28 Year 2007, the time limit for the Tax Authorities to assess or amend taxes was reduced from ten (10) to five (5) years,


subject to certain exceptions, since the tax became payable and for year 2007 and prior years, the time limit will end at the latest on fiscal year 2013.

16. Advances Received This account represents advances sale of timber (logs) to UD Wijaya Loka in December 31, 2015 and 2014 amounted to Rp 52,966,326,774 and Rp 26,714,421,860, respectively (Notes 30c).

logs

17. Others Payables

Third parties Octagon Wealth Panel PTE Ltd Syahirifudin Total Related parties PT. Indo Venner Utama PT. Armada P. Samudra Total Total

secured promissory note

right issue

Cessie

On June 25, 2013 The Company issuing of promissory secured notes purchasing agreement with Octagon PTE LTD as amount of Rp 55,980,000,000 and Mr. Syahirifudin for Rp 59,040,000,000 the length of period was for 2 (two) years from the date of issuance, and has been extended untill will be due on June 24, 2017 the company has confirmed and agreed for exchanged to be the Shares of the Company's in futures in reference for the additional of the company capital, and management will arrange for the corporate action as soon as possible (Notes 30e).

On June 25, 2015 carried out transfer of receivables agreement (Cessie), by H. Syahirifudin to Octagon Pte Ltd Wealth Panel (OWP).


53


18. Bank Loans - Long term

PT. Bank Capital Indonesia Tbk Less current maturities Long term portion On August 8, 2011, PT Bangun Kayu Irian obtain credit facilities from PT Bank Capital Indonesia Tbk, as follows:

Kredit investasi/ Investment Credit

Heavy vehicle

Type facility Plafond Annual Interest Time period Collateral

19. Finance Lease Liabilities sale

and lease back

In 2015, its subsidiaries entered into sale and leaseback of fixed assets with PT Malaca Trust Finance and PT Batavia Prosperindo Finance Tbk with a term of three (3) years with interest rate of 9.15 % per annum. The Company and its subsidiaries entered into lease agreements with PT. Surya Artha Nusantara Finance and PT. Mitsui Leasing Capital Indonesia, third parties, for the lease of vehicles and heavy equipment and have lease terms of three (3) years and interest rates from 5,75% to 10,00% per annum. The lease liabilities are secured by the related leased assets.

payments)

54

(future minimum lease


Based on the lease agreements, the future minimum lease payments are as follows:


Payments due in: 2015 2016 2017 2018 Total Less interest Present value of minimum lease Less current portion Long term portion

20. Capital Stock The stockholders of the Company based on the record of PT. Ficomindo Buana Register, the Share Registration Bureau, follows:

Number of Shares /Shares

Percentage of ownership

Par value

Shareholders PT ASABRI (Persero) Edi Suwarno Al Jab L Sing Public below 5% each Total

Number of Shares /Shares

Percentage of ownership

Par value

Shareholders Vonny Yuliana Kusuma Dewi Dwi Nugroho Edi Suwarno Al Jab L Sing Public below 5% each Total


55


21. Additional Paid In Capital

Additional paid in capital Stock issuance costs Total Details stock issuance costs are as follows: Cost of underwriting commisions Cost of supporting institution and profesional Cost of printing of registration statement Cost of shares registration Other Total

22. Net Sales

Logs Logging services Plantation Total

The above sales for years ended December 31, 2015 and 2014 include sales to the following customers which represent more than 10% of the net sales of the respective period:

Total

Percentage of sales

Total

Percentage of sales

Customers Related parties; PT. Indo Veneer Utama Third parties UD. Wijaya Loka PT. Tunas Karya Gemilang PT. Kayan Jaya Tanjung Total

56



23. Cost of Goods Sold

Raw material used Direct labours Depreciation expense Repair and maintenance expense Total manufacturing cost Inventories at beginning of year Inventories at end of year Cost of good sold

There were no purchases from an individual supplier which represent more than 10% of the total revenues for the year ended December 31, 2015 and 2014. 24. Operating Expenses Selling Expenses

Shipping Travelling Packing and shipping Fuel, oil and parking Others Total

General and Administrative Expenses

Salaries and benefit in kinds Employee benefits Entertainment and representation Profesional fees Telephone, electricity and water Insurance Rent Membership Repair and maintenance Office supplies and printing Taxes Donation Jamsostek Permits Office householder Fuel, oil and parking Advertising and promotion Others Total


57


25. Employee Benefits The amount of post-employment benefits is determined based on the outstanding regulation, Law No. 13 Year 2003 dated March 25, 2003. The latest actuarial valuation report, dated January 29, 2016, on the employee benefits liability was from PT. Sentra Jasa Aktuaria, an independent actuary. Number of eligible employees (unaudited) is 110 and 92 as of December 31, 2015 and 2014.

The details of employee benefits expense are as follows:

The total amount recognized in statement of comprehensive income Current service costs Net interest on net defined benefit liability (asset) Actuarial losses (gain) Total The Total amount recognized in other comprehensive income Remasurement of the net defined benefit liability (asset) Actuarial (gains) losses from changes in in financial assumption Total

Movements of long-term employee benefits liability are as follows:

Balance at the beginning of the year Long term employee benefits expenses during the year The amount recognized in other comprehensive income Total Long-term employee benefits expense is presented as part of “General and administrative expenses” in the consolidated statements of comprehensive income.

58



Management believes that long-term employee benefits liability as of December 31, 2015 and 2014 is in compliance with Law No. 13/2003. The principal actuarial assumptions used in the valuation of the long-term employee benefit liability:

26. Income Tax Prepaid tax Tax expense (benefit) of the Company and its subsidiaries consists of the following:

Company Income article 22 Income article 23 Income article 4 (2) Value added tax Total Subsidiary Value added tax Total

Current tax A reconciliation between income before tax per consolidated statements of comprehensive income and taxable income of the Company is as follows:


59


Income (loss) before tax per consolidated statements of comprehensive income Income (loss) before tax of the subsidiaries -net Income (loss) before tax of the company Temporary difference Employee benefit Permanent difference Representation and donation Interest income Income (loss) of subsidiaries Others Fiscal gain (loss) of the Company Fiscal los :

Total Tax loss carryforward at end period

Deferred tax The details of the Company and its subsidiaries’ deferred tax assets and liabilities are as follows:

January 1, 2015

Credit (charged) to statement of comprehensive income

December 31, 2015

Company Employee Income article benefit23 Subsidiary Employee benefit Total

January 1, 2014

Credit (charged) to statement of comprehensive income

December 31, 2014

Company Employee Income article benefit23 Subsidiary Employee benefit Total

60



27. Earnings per Share The calculation of earnings per share is as follows:

Income (loss) comprehensive Income current article year23 Weighted overage number of number of ordinary share outstanding Earning (loss) per share

28. Nature of Relationship and Transactions with Related Parties Nature of Relationship The nature of relationship and significant transactions with related parties are as follows: PT Indo Vener Utama is a company under common control with shareholders. Transactions with Related Parties In the normal course of business, the Group has entered into certain transactions with related parties involving the following:

December 31, 2015

Percentage to total liabilities

Other payable PT. Indo Income Venner article Utama 23 Sales PT. Indo Venner Utama

December 31, 2014

Percentage to total liabilities

Other payable PT. Indo Income Venner article Utama 23 Sales PT. Indo Venner Utama


61


29. Financial Instruments The company's policy to maintain a healty capitals' structure in oreder to secure access to finance at reasonable cost. Financial instruments presented in the statements of financial position are carried at fair value, other wise, they are presented at carrying amounts as either these are reasonable approximation of fair values or their fair values cannot be reliably measured. The following methods and assumptions were used to estimate the fair value of each class of financial instrument for which it is practicable to estimate such value: Cash and cash equivalents, trade receivables and other receivables. All of the above financial assets are due within 12 months, thus the carrying values of the financial assets approximate their fair values.

Short-term bank loans, other payables and accrued expenses. All of the above financial liabilities are due within 12 months, thus the carrying values of the financial liabilities approximate their fair values.

Due to a related party Due to a related party are carried at historical cost because their fair values cannot be reliably measured. It is not practical to estimate the fair values of such assets because there are no fixed repayment terms although these are not expected to be settled within 12 months after the statements of financial position. The following table sets forth the carrying amounts and estimated fair values of the financial instruments of the Company that are carried in the statements of financial position as of December 31, 2015 and 2014:

62



December 31,

Carrying Values

Estimated Fair Values

Carrying Values

Estimated Fair Values FINANCIAL ASSETS Current Financial Assets Cash and cash equivalents Trade accounts receivable - third parties Other accounts receivable- third parties Total Financial Assets FINANCIAL LIABILITIES Current Financial Liabilities Short-term bank loans Accrued expenses Tax Payable Finance Lease Total Current Financial Liabilities Noncurrent Financial Liabilities Long-term liabilities (current and noncurrent) Finance lease liabilities Other payable Total Noncurrent Financial Liabilities Total Financial Liabilities

30. Commitments and Agreements On July 31, 2015 The Company has conducted a joint operation with PT. Tunas Karya Gemilang concerning the extension of the period of cooperation. Accordance with the Working Agreement Number. 001 / SPK / TKG / I / 2014 dated 23 January 2014. In the period of co-operation agreements until January 20, 2015 and may be extended by the parties with the prior written consent of one (1) month before the expiry of that period. Has done an addendum to the agreement joint operation of timber utilization permits (IPK KSO) with PT Tunas Karya Gemilang 2014 for cutting services logs (Log) located in the West Kutai, East Kalimantan, KSO agreement GPA period commencing from the date January 21, 2014 to the date of 20 January 2015. The parties agree that the term of this agreement as of the date January 21, 2014 until the date of August 31, 2015 and can only be extended by the parties with the


63


prior written consent of one (1) month before the expiry of the Term.

PT Mitra Pembangunan Global a subsidiary of PT Bumi Teknokultura Unggul Tbk, on Monday, February 3, 2014 Date of the two sides have agreed and agreed to hold a sale and purchase transaction timber (Logs) with UD Wijaya Loka (Lukman Naharto) In accordance with the employment agreement letter No. : 001/Dir-Btek/KY/II/2014, the volume of roundwood / logs that have been agreed upon by both parties is a 22,500 ± M -Two Thousand Five Hundred Cubic Meters). Which is part of the annual work plans (RKT) in 2014 which was passed by the head of the Provincial Forestry Office of West Papua. The price agreed upon by both parties of Rp 2,800,000,-/M Wood Merbau (FOB Barge and above price does not include the DR & PSDH). For Merbau wood type, diameter and length composition is allowed 50-59 cm = 10%, 60 cm Up = 90%, mechanical log length of 8 meters up. Place of delivery is done in the Log Pond PT Mitra Pembangunan Global in Kais, West Papua Province. The Log Pond Kais coordinates are as follows: 132 ° 11 '49.1 "latitude and 01 ° 52' 25.6" East. Time of delivery or shipment must be made by the beginning of the first party. All departures barge to the location of the first party (the seller) must obtain approval and permits unloading officially in writing of the seller, while the first party in selling logs to the second party the legal documents, the first party ensure that wood being sold comes with a document-documents in accordance with government regulations in general and or departments of forestry in particular. Therefore, the first frees both parties from all claims of any party.

If the shipment exceeds 14 (Fourteen) days then, starting today to 15 (Fifteen) The first

64



party wearing delay penalties which amount is based on existing provisions in the agreement Marine Transport (SPAL) between the two parties regarding Article cruise Demurage , Handover of goods carried by minutes is signed by both parties, and both parties are willing to buy only legal timber originating or produced from areas that have been granted permission polling/exploitation and utilization of timber from the government Cq. Department of Forestry and Plantation Republic of Indonesia who have fulfilled the obligations upon it.In the occurrence of extraordinary events or force majeure (flood, earthquake, storm, mountain erupts, Landslide, Epidemic, Typhoon, War, Rebellion, Riot, Riot, Revolution, strikes and Disorders-interference) are undesirable and can not be avoided by the first and second sides, then both parties agree to revisit this agreement.

PT Bangun Kayu Irian subsidiaries of PT Bumi Teknokultura Unggul Tbk, on Monday Date December 22, 2014 both parties have agreed and agreed to hold the buying and selling of timber (Logs) with UD Wijaya Loka (Lukman Naharto) In accordance with the letters of intent Numbers 001/DirBKI/KY/XII/2014, the volume of timber/logs that have been agreed by both parties is a 25,000 ± M thousand cubic meters). Which is part of the framework of the annual in 2014 which was passed by the head of the Provincial Forestry Office of West Papua. The price agreed upon by both parties of Rp 3.000.000,-/M Wood Merbau (The above price FOB Barge and exclude DR & PSDH, and do not include VAT 10%). For Merbau wood type, diameter and length composition are allowed is 50-59 cm = 10%, 60 cm Up = 90%, mechanical log length of 8 meters up.


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All departures barge to the location of the first party (the seller) must obtain approval and permits unloading officially in writing of the seller, as for the first party in selling logs to the two legal documents, the first party ensure that the timber sold are equipped with document - documents in accordance with government regulations in general and or the forestry department in particular. Therefore, the first frees both parties from all claims of any party.

If the shipment exceeds 14 (Fourteen) days then, as of day 15 (Fifteen) The first party in wear sanctions delay magnitude based on existing provisions in the agreement Sea Transport (SPAL) between the second party with the shipping regarding Article Demurage. The total value of the contract volume of 25,000 ± M - in which payments will be made as follows: a. Down Payment (DP) 45% of the volume of ± 25,000 M -. The rest of the payment referred to in letter (a) shall be paid by the second party by way of a payment of 55% of the timber is ready fit. If until the date of January 30, 2016, was the first party has not been able to do the actual shipment, it will incur a penalty of 1% per month calculated based Down payment (DP) has been paid by both parties. Financing facility agreement (the "Agreement") is made in Jakarta, on Thursday, June 25, 2015, By Ari Sutanto in this case acting in his capacity as President Director of PT. Bumi Teknokultura Unggul Tbk., PT. Bangun Kayu Irian, PT. Mitra Pembangunan Global, the whole is a limited liability company incorporated under the laws of the Republic of Indonesia and domiciled in Jakarta (Here in after referred to as "BTEK GROUP"), from and therefore a legitimate act on behalf BTEK GROUP (here in after referred to as "the First Party). And

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Volker Lange, Germany citizen, in this case acting in his capacity as director Octagon Wealth Panel Pte Ltd, (Here in after referred to as "the Second Party").

First party and the second party are jointly referred to as "the Parties", that the first party is a group company engaged in the forestry sector that is growing rapidly and is expanding in doing business in the field of forestry. The second party that has provided the facility since the year 2013 to the first party of up to a maximum of Rp 400,000,000,000, - (four hundred billion rupiahs), to guarantee the repayment of funding facilities that have been used by the first party, the first party has issued promissory notes berjamin (secured promissory note) with a nominal value of Rp 10,980,000,000, - (ten billion nine hundred eighty million rupiah) Number: C 0002 dated June 25, 2013 and berjamin promissory notes (secured promissory note) with a nominal value of Rp 45,000,000,000, - (forty five billion rupiah) Number: C 0003 dated June 25, 2013 to the second party. That SSB C-0002 and C-0003 SSB who has published the first party to the second party was due on June 24, 2015.

With the written consent of the parties, the time periods in accordance with the terms and provisions of the above can be extended. By paying attention to the terms and provisions of this agreement, the parties agree that the period of funding facilities are up to the date of December 31, 2018.

(Cessie),

On June 25, 2015 carried out transfer of receivables agreement (Cessie), by H. Syahirifudin with Octagon Pte Ltd Wealth Panel (OWP). H. Syahirifudin have bills/debts of Rp. 59.04 billion, - PT. Earth Teknokultura Unggul Tbk. Based on Secured Promissory Note No. C 0001 dated June 25, 2013 issued by


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the Company and will mature on June 24, 2015 (hereinafter referred to as the Promissory Note). H. Syahirifudin that intend to transfer the right to collect/receivable from the Company to fit the size of the bill OWP/receivable.

Based on the above matters, H. Syahirifudin agreed to transfer the right to collect/receivable to the Company to OWP on June 25, 2015. OWP agreed to accept the transfer of rights Syahirifudin H. receivable/accounts in accordance with the terms and conditions listed and will due on June 24, 2017. This Agreement is governed and construed in accordance with the laws of the Republic of Indonesia. Any disputes, conflicts, and conflicts between the parties with respect to the implementation of this agreement, as much as possible be settled amicably to reach an agreement, this agreement should not be amended, unless approved in writing by the parties. 31. Segment Information Primary Segments Operating segments are reported in accordance with the internal reporting provided to the chief operating decision maker, which is responsible for allocating resources to the reportable segments and assesses its performance. The Group has two (2) reportable segments, namely; plantation and manufacturing.

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December 31, 2015

December 31, 2014 Revenue Income articleLogs 23 Plantation Logging Sub total Cost of Good Sold Income articleLogs 23 Plantation Logging Sub total Gross Profit Income articleLogs 23 Plantation Logging Total

* Segment assets exclude deferred tax assets and prepaid taxes while segment liabilities exclude taxes payable and deferred tax liabilities. Inter-segment sales are based on the agreement of both parties. Geographical Segments The geographical segment of the Group was not presented because all of its business activities are located in Papua. 32. The Company’s Going Concern and Management Plans During 2015 and 2014, the Company continues to focus on efforts to diversify its strategy searching for potential business opportunities, increasing its revenue and operating efficiencies to reduce its deficit. As of December 31, 2015 and 2014, the Company's deficit amounted to Rp 44.948.292.672 dan Rp 45,479,676,332 respectively. Furthermore, the Company have implemented and will continue to implement the following: a.

undertake acquisitions and/or investment in companies which have similar business with the Company, Forest Conncession Rights,


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Planting Forest Industry, Plywood Industry, etc.;

Plywood

b. c.

obtain strategic investor; rights issue for additional capital;

d.

undertake cost efficiency program through employee development program to enhance staff’s or eployees capability in controlling the operations of the Company; and diversification strategy in the search for potential business opportunities (such as: producing and/or trading of plywood, planting forest industry, shipping, transportation, etc ).

plywood

Management of the Company believes that the above mentioned plan will be effectively managed and improved the conditional of the Company. The Company's ability is to continue its going concerns dependent on the continuation support from the Shareholders and Creditors. 33. First Time Implementation Of PSAK 24 (Revised 2013) Starting January 1, 2015, the Company adopted PSAK No. 24 (Revised 2013), “Employee Benefits”, which regulates accounting treatment and disclosure employee benefit. The effect of transition adjustments of No. 24 (Revised 2013) are as follows:

PSAK

January 1, 2014/December 31, 2013 Before adjusted

As adjusted Adjusment of first implementation of SFAS 24 (Revised 2013)

LIABILITIES Liability for post-employment benefit EQUITY Actuarial loss

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December 31, 2014 Before adjusted


LIABILITIES Liability for post-employment benefit EQUITY Actuarial loss

December 31, 2015 Before adjusted


LIABILITIES Liability for post-employment benefit EQUITY Actuarial gain

34. Reclassification Of Accounts Certain accounts in the 2014 financial statements have been reclassified to conform with the presentation of accounts for the years ended December 31, 2015 of financial statement is as follows:

As Previously Reported

As Currently Reported

Other assets Infrastructure road Pra operation Fixed assets Construction on progress Infrastructure road


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35. Information on New Regulation The Indonesian Institute of Accountants has issued the following amended Statements of Financial Accounting Standards (PSAKs) and new Interpretations of Financial Accounting Standards (ISAKs) which will be effective for annual period beginning January 1, 2016, except for Amendment to PSAK No. 1 and ISAK No. 31 which will be effective on January 1, 2017: PSAK PSAK No. 1, Presentation of Statements: Disclosure Initiative

Financial

PSAK No. 16, Fixed Assets regarding Clarification of Acceptable Methods of Depreciation and Amortization PSAK No. 19, Intangible Assets regarding Clarification of Acceptable Methods of Depreciation and Amortization PSAK No. 24, Employee Benefits regarding Defined-Benefit Plans: Employee Contributions PSAK No. 66, Joint Arrangements regarding Accounting for Acquisitions of Interests in Joint Operations ISAK ISAK No. 30, Levies ISAK No, 31, Interpretation of Framework of PSAK No. 13, Investment Properties The Company is still evaluating the effect of these PSAKs and ISAKs and has not yet determined the related effects on the financial statements.

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