In accordance with the prevailing regulations, dividend payment must be approved by the shareholders at the Annual GMS, based on the recommendation from the Board of Directors. The Company’s Articles of Association stipulates that dividends can only be paid in line with the Company’s financial capability based on the decision taken at the GMS. The Board of Directors may alter the dividend policy of the Company at any time as long as such a action is approved by the GMS.
The amount of cash dividends is linked to the Company’s net profit for the year, by taking into consideration the soundness of the Company’s financial condition and without prejudice to the right of the GMS to determine otherwise, as well as in accordance to the Company’s Articles of Association, starting from the 2011 fiscal year onwards, the Company will pay dividends with the basis as follows:
|Net Profit||Dividend Payout Ratio|
|Net Profit up to Rp 25 billion||≤ 15%|
|Net Profit Rp 25 billion - Rp 50 billion||≤ 10%|
|Net Profit more than Rp 50 billion||≤ 5%|