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PRESS RELEASE KPEI Successfully Achieved “Excellent” Score for GCG Implementation

4 May 2018

PT Kliring Penjaminan Efek Indonesia (KPEI) successfully recorded an achievement in the Good Corporate Governance practice implementation assessment, with a score of 88.65%, putting KPEI in the Excellent level. The scoring certificate was handed to KPEI at the Main Hall of Indonesia Stock Exchange Building by Prof. Sidharta Utama, Ph.D., CFA, Professor at the Faculty and Economics and Business, University of Indonesia (UI), an expert of Corporate Governance, to Hasan Fawzi, President Director of KPEI, and witnessed by KPEI’s employee representatives. The assessment process of KPEI’s GCG practice implementation in 2017 was carried out comprehensively with the support of an independent party, i.e. PPA FEB UI. Such process was different from the assessment process in the previous years, in which KPEI conducted a self-assessment. Hasan Fawzi explained that the appointment of independent parties in the GCG practice assessment process was expected to improve objectivity and quality of the results. “We expect the assessment of independent parties, especially from academic institutions such as UI, will provide a factual picture of GCG implementation in KPEI,” said Hasan. In conducting the assessment, PPA FEB UI developed an assessment based on the Association of South East Asia Nations (ASEAN) CGG scorecard, which was derived from the Organization for Economic Co-operation and Development (OECD) GCG principles, and the applicable best practices, such as the Principles for Financial Market Infrastructure (PFMI). Such instrument was then modified according to KPEI’s special characteristics, referring to the regulations and provisions of Indonesia FSA. According to the chairman of PPA FEB UI Assessment Team, Siti Nuryanah, Ph.D, the preparation of assessment instruments for KPEI cannot be equated with GCG practices assessment in other companies, such as public companies and State-Owned Enterprises. KPEI, as part of the Self-Regulatory Organizations (SRO), has a special function in Indonesia capital market, which is not like other companies. “We performed a comprehensive assessment and the satisfactory result obtained by KPEI is worth appreciating,” said Siti Nuryanah, Ph.D. KPEI’s earnestness in carrying out an objective assessment of GCG practices demonstrates KPEI’s commitment to always improving the Company’s services to its stakeholders. One of them is by being a company with a high standard of corporate governance implementation. Achieving Risk Management Award to ISO Quality Improvement In addition to CGC achievements, KPEI also received an award in the field of Risk Management in 2017. Such recognition was awarded by Markets Monthly Magazine, Al Global Media, a UK-based media group, which awarded “Best Risk Management Company” in International Emerging Markets Awards 2017. Such award was given to KPEI for its satisfactory performance and achievement in 2016. KPEI managed to perform its role as a clearing and guarantee institution optimally. Through its risk management methods, several default events by clearing members (CM) in 2016 can be

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properly resolved by KPEI . The risk management undertaken by KPEI was able to prevent the occurrence of systemic effects to other CM that had the potential to disrupt the continuity of capital market transactions. In addition, in order to meet the service quality standard, KPEI, as an institution with ISO 9001 certification since 2001, strives to continuously improve its service quality by conducting self-assessment to meet the latest version of ISO 9001 Certification version 2015. Based on the assessment result and the implementation of Surveillance Visit in November 2017 by Lloyd’s Register Quality Assurance (LRQA) Assessor, KPEI successfully obtained the recommendation for ISO 9001:2015 Certification. Unlike the previous version of ISO scope, which was 2008, which assessed all activities of clearing and securities exchange transactions settlement guarantee, and securities borrowing and lending, in the ISO 9001:2015 framework KPEI added clearing of government retail transactions over the counter via the Electronic Trading Platform (ETP) as part of the assessment scope. With the achievement of such ISO certification, KPEI continuously maintains and improves the Company’s service quality, so that the needs and expectations of the stakeholders, especially users of KPEI’s services, can be adequately met. As part of KPEI’s achievement in 2017, KPEI has also obtained ISO 27001:2013 Certification on Information Security Management System (ISMS) with the defined scope. The ISO 27001:2013 Certification was officially issued by the British Standards Institution (BSI) on 30 March 2017. Subsequently, on 13 April 2018, the same institution recommended KPEI to obtain ISO 27001:2013 Certification with a wider scope, covering all divisions and units of the Company. Through the comprehensive implementation of ISMS, KPEI is expected to have effective and efficient information security governance, so as to strengthen its role as a trusted clearing and guarantee institution and to comply with the international standards of information security. Further information: Reynant Hadi Corporate Secretary PT Kliring Penjaminan Efek Indonesia Indonesia Stock Exchange Building, Tower I, 5th Floor Jl. Jend. Sudirman Kav. 52-53 Jakarta 12190 - Indonesia Telephone: +61.21.515 5115 Facsimile: +62.21.515 5120 www.kpei.co.id