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The Company Statement Regarding the Late Submission of the Notification on the Acquisition of TKPI

Further to the Decision made by the Commission for the Supervision of Business Competition or Komisi Pengawas Persaingan Usaha (“KPPU”) on Case No. 31/KPPU-M/ 2020 dated 5 October 2021 regarding the late submission of the notification on the acquisition of PT Tanjung Kreasi Parquet Industry (“TKPI”) in 2011 by PT Dharma Satya Nusantara Tbk (“the Company”), the Company hereby conveys its exposition:

1. The Company will honor and obey the KPPU’s Decision in accordance with prevailing regulations.

2. The submission of a delayed notification report to KPPU on 26 November 2019 in regards to the acquisition of TKPI, was voluntarily initiated by the Company itself, proving the Company’s goodwill in enforcing the implementation of Good Corporate Governance.

3.  Further to receiving a letter of reprimand from KPPU relating to the delayed notification on the acquisition of PT Agro Pratama (AP) dated 27 May 2015, the Company has soon made a voluntarily submission of 3 delayed notifications relating to acquisitions; i.e. TKPI (acquired in 2011), PT Rimba Utara (acquired in 2012) and PT Karya Prima Agro Sejahtera (acquired in 2012). This voluntarily submission shows the Company’s contrition for misinterpretating the KPPU regulations in the past.

4. The Company has been adjudged to pay fines for all transactions mentioned above whose settlements have been and will be made accordingly.

5. At the time of those transactions, the Company had misunderstood the KPPU’s regulation by assuming only transactions with value above the materiality threshold (as set by the prevailing regulations) and/or transactions which might leading into any monopolistic practices or unfair business competition, that obligated to be reported to KPPU.

6. As a public listed company, the Company will always commit itself to complying with the prevailing rules and regulations and implementing good corporate governance.

Jakarta, 8 October 2021

PT Dharma Satya Nusantara Tbk