Dear Shareholders and Stakeholders,

The blessings and grace of God Almighty, I begin this report with a reflection on the journey and achievements of PT Wijaya Karya Beton Tbk (WIKA Beton) throughout the year 2024. This year marks a crucial milestone, with strong and sustained determination and success in navigating increasingly complex industry challenges.

As a key player in the precast concrete industry, WIKA Beton has shown resilience through product innovation, operational efficiency, and adaptability to market dynamics. The sustainability strategy implemented not only fulfills client needs but also strengthens its position as a trusted partner in environmentally friendly infrastructure development.

On behalf of the Board of Commissioners, it is an honor to express our appreciation to the shareholders, stakeholders, the Board of Directors, and all employees of WIKA Beton for their outstanding contributions. Solid collaboration and determination have become the foundation for WIKA Beton to continue growing, creating value, and delivering future-oriented solutions.

Assessment Of The Performance Of The Board Ofdirectors Concerning The Management Of The Company

The Board of Commissioners recognizes that 2024 has been a challenging period for the precast concrete industry and WIKA Beton in particular. Various dynamics, external factors such as changes in global market conditions, and internal factors such as organizational adjustments, have posed challenges for the Company in maintaining its position in the market. However, we remain optimistic, as the Board of Directors has successfully formulated strategic policies that have allowed WIKA Beton to maintain its status as a market leader in the precast concrete sector. This optimism is supported by the achievement of Key Performance Indicators (KPIs), which have been successfully met throughout the year.

Each member of the Board of Directors has performed their duties and responsibilities effectively in their respective areas. Both external and internal factors have not hindered the Board in guiding the Company to continue growing despite the challenges. Our KPIs achievement, as outlined in the approved Company’s Work Plan and Budget (RKAP) of evidence of this success. Throughout 2024, the Board of Directors exceeded the established KPI targets. Out of the planned 100,00% KPIs, the Board achieved 105,00% KPIs, surpassing the targets. As a result, we assess the performance of the Board of Directors in 2024 as excellent, showing a strong commitment to the Company’s vision.

We appreciate the Board of Directors for their efforts in formulating sharper strategies that not only improve effectiveness but also enhance operational efficiency. While some financial targets were not met, this success reflects the Board of Directors’ dedication to maintaining the Company’s competitiveness and sustainability in the face of a dynamic business environment.

Oversight By The Board Of Commissioners On The Formulation And Implementation Of Corporatestrategies By The Board Of Directors

We continue to play a key role in overseeing the formulation and implementation of strategies designed by the Board of Directors to ensure the continuity of operations and the sustainability of the Company. Throughout 2024, we ensured that all strategic policies aligned with the Company’s new vision and mission, emphasize sustainability, efficiency, and technology-driven innovation. These strategies also reflect the aspirations of shareholders, decisions made at the General Meeting of Shareholders (GMS), and applicable regulations.

This year, we focused on the implementation of the three main pillars of transformation formulated by the Board of Directors, which are:

1. Cash Acceleration
2. Operational Excellence; and
3. Commercial Resilience

We appreciate the Board of Directors’ efforts in carefully mapping the market, including the precast, ready mix, and services segments, to ensure optimal use of factory capacity. Additionally, we recognize the focus on developing portable plants for operational flexibility, and investments in molds, factory equipment, and strengthening information technology (IT) infrastructure. These actions are seen as strategic initiatives to enhance the Company’s operational excellence.

Sustainability is also a key focus of our oversight. The Company has launched environmentally friendly products, such as pile green and building green, in line with the international Environmental Product Declaration (EPD) certification it has received. This strategy not only enhances WIKA Beton’s competitiveness but also reflects its commitment to responsible environmental management.

As part of the transformation efforts, we support strengthening the organization through Lean Organization initiatives, risk management, and digital integration to improve efficiency and productivity. Through the Transformation Office, we closely monitor the organizational transformation efforts to ensure that all strategic initiatives are executed efficiently and align with market needs. A comprehensive risk assessment, we are confident the strategic initiatives implemented by the Board of Directors will foster sustainable growth and maintain the Company’s competitiveness in the future.

Outlook On The Company’S Business Prospects Prepared By The Board Of Directors

The Board of Commissioners believes the strategy formulated by the Board of Directors for 2025 has been carefully planned, considering the challenges and opportunities faced by the Company. The 2025 Work Plan and Budget (RKAP) on optimizing factory utilization, innovating environmentally friendly products, and strengthening sustainability through the launch of an ESG Dashboard. We are confident that these steps will maintain its competitiveness while creating added value for shareholders and other stakeholders.

We appreciate the Board of Directors’ focus on developing environmentally friendly products, such as pile green and building green, which have supported the achievement of the international Environmental Product Declaration (EPD) certification. These efforts show its commitment to sustainable business practices aligned with global trends and market demand.

In addition, the Board of Commissioners welcomes the continued implementation of the three transformation pillars: cash acceleration, operational excellence, and commercial resilience. We are confident that by executing this strategy, WIKA Beton will be able to mitigate the impact of external challenges, such as changes in government policy, and still achieve the expected growth targets.

More efficient and sustainable operational performance is projected to be a key driver in achieving business targets in 2025. Focused on innovation, sustainability, and operational efficiency, the company has significant opportunities to maintain its position as the market leader in precast concrete in Indonesia and continue positively contributing to national development.

OUTLOOK ON THE IMPLEMENTATION OF CORPORATE GOVERNANCE

We make Good Corporate Governance (GCG) one of its main goals. In 2024, the Board is committed to ensuring that the implementation of governance at WIKA Beton continues with high quality, following the applicable GCG principles, and based on the core values of AKHLAK. This oversight aims to support business sustainability and create added value for shareholders.

Throughout the year, we have actively monitored the implementation of governance through various measures, including promoting the application of comprehensive risk management across all operational areas. We note that the Company continues to improve its governance systems and procedures, as reflected in the implementation of recommendations from the Indonesian Corporate Governance Guidelines (PUGKI) and the ASEAN Corporate Governance Scorecard (ACGS). These efforts show its commitment to enhancing transparency and accountability to all stakeholders.

The Company demonstrates its commitment to Good Corporate Governance (GCG) practices through a self-assessment based on the ASEAN Corporate Governance Scorecard (ACGS). This assessment is conducted to evaluate the quality and effectiveness of GCG implementation in accordance with international standards applied across ASEAN countries.

Based on the 2024 assessment results, the Company achieved an overall score of 92.37 points, placing it in the “Very Good” category (Level 4). This indicates that WIKA Beton has fully complied with the international GCG principles outlined in the ACGS.

This result reflects that the Company’s corporate governance is aligned with OECD principles and ASEAN best practices, serving as a strategic foundation for enhancing transparency, risk management, and stakeholder relations.

In addition, the Board of Commissioners encourages the Board of Directors to improve the quality of information disclosure in the 2024 Annual Report. This effort is carried out in compliance with the key aspects of PUG-KI.

Although the Company achieved a high score, the assessment also provided recommendations for improvement, particularly in sustainability and ongoing transparency, to help WIKA Beton reach the “Leadership in Corporate Governance” level in the future.

Outlook On The Implementation Of The Whistleblowing System (WBS) And The Role Of The Board Of Commissioners In WBS

The Whistleblowing System (WBS) is a key element of GCG at WIKA Beton. In 2024, we continued to encourage improvements to this system to effectively detect and prevent potential fraud, policy violations, or internal misconduct. This system is designed to support transparency and accountability throughout the organization.

We not only oversee the implementation of the WBS but also provide strategic guidance on the reports received via the WBS mechanism. The follow-up process for these reports is handled by the GCG Compliance Team, which is responsible for managing and resolving the reports with principles of confidentiality, fairness, and professionalism.

Throughout 2024, the Company received no reports of violations through the WBS. This reflects a high level of compliance among all employees of WIKA Beton with internal regulations and policies. We appreciate this achievement, which indicates its success in fostering a culture of integrity in the workplace.

To boost the system, we also support the Management’s efforts to continue regularly promoting policies, procedures, and the WBS mechanism to all employees. This initiative aims to raise awareness and active participation in maintaining good governance. In the future, we hope the WBS will remain the main guide in preserving credibility, integrity, and trust from stakeholders.

Frequency And Manner Of Advising To The Board Of Directors

In 2024, we continued to carry out its main duty of providing advice and strategic recommendations to the Board of Directors regarding the company’s management. The advisory process is through two main mechanisms: internal Board of Commissioners meetings and joint meetings between the Board of Commissioners and the Board of Directors. In addition to these mechanisms, we used digital platforms to hold hybrid meetings in response to urgent issues requiring quick decisions. The outcomes of discussions outside formal meetings were reviewed and approved in official meetings.

In addition to formal meetings, the Board of Commissioners also uses interviews to gain a deeper knowledge of specific issues that require particular attention. Through these interviews, we can obtain additional information from the Board of Directors to ensure that every strategic decision is comprehensive data and analysis.

Throughout 2024, we held 12 internal meetings and 12 joint meetings with the Board of Directors. These meetings served as a platform to provide recommendations on different important aspects of digitalization and technology, environmentally friendly initiatives, strengthening the Company’s core values, strategic risk management, the implementation of the Annual General Meeting of Shareholders (AGMS), and the appointment of committee members to ensure the Company’s sustainability and stability. The recommendations also covered other aspects of the Board of Commissioners’ supervisory functions.

All decisions and recommendations during these meetings are officially recorded on the Board of Commissioners’ Decrees. By this approach, we ensure that all advice provided is not only relevant and strategic but also supports the Company’s sustainability and competitiveness in encountering business challenges in 2024.

Assessment Of The Performance Of Committees In Support Of The Board Of Commissioners

Throughout 2024, the Board of Commissioners received support from three Committees: the Audit and Business Risk Committee, the Nomination, Remuneration, and GCG Committee, and the newly formed Risk Monitoring and Integrated Governance Committee. These three Committees play a crucial role in assisting us in overseeing the Good Corporate Governance (GCG) principles within the Company.

We believe that all Committees have made significant contributions in reviewing the strategic issues encountered by the Company and recommending appropriate mitigation measures particularly. Specifically, the Board of Commissioners also presents the contributions of each Committee, as follows:

1. The Audit Committee has carried out its strategic responsibilities effectively. The Committee actively evaluates internal audit reports and ensures compliance with regulations and Accounting of Indonesia principles. The tasks include reviewing the implementation of principles, procedures, methods, and accounting techniques, risk management, and and the financial statements prepared by the Management of WIKA Beton and audited by a Public Accounting Firm (KAP). Additionally, the Audit and Business Risk Committee provides recommendations to improve internal controls, support better risk command, and ensure the integrity of the audit process at all levels of the Company.
2. The Nomination, Remuneration, and GCG Committee has proved optimal performance. The Committee focuses on identifying and developing potential talent to strengthen the nomination process and support leadership continuity within the Company. Additionally, the Committee has developed and implemented a remuneration policy for us and the Board of Directors, which considers the performance and contributions of each party. This process is carried out transparently and following GCG guidelines.
3. The Risk Monitoring and Integrated Governance Committee, established in 2024, plays an important role in strengthening risk management and governance within the Company. The Committee assists us in identifying strategic risks and guides to ensure that risk mitigation actions are taken proactively and integrated.

Overall, we believe the three committees have performed their roles effectively throughout 2024. The committees have provided particular reviews of various aspects, including operations, finance, risk management, remuneration systems, internal controls, and the implementation of good corporate governance. We emphasize the positive outcomes from this evaluation must be maintained and any findings that require particular attention should be addressed promptly and effectively by management in line with the Board of Commissioners guidance. Through these collective contributions, we are confident the Company can continue to enhance its competitiveness and business sustainability.

Changes In The Composition Of The Board Of Commissioners And The Reasons For The Changes

Based on the decision of the General Meeting of Shareholders for the 2023 financial year, Deed No. 43 dated May 17, 2024, it was resolved to respectfully dismiss Mr. Hermawan Dhewayanto from his position as President Commissioner and Mr. Priyo Suprobo from his position as Independent Commissioner. Additionally, Mr. Eko Sujiyanto was appointed as President Commissioner, and Mr. Iswandi Imran was appointed as Independent Commissioner.

The composition of the Board of Commissioners before the change is as follows:

Before Changes

The composition of the Board of Commissioners of PT Wijaya Karya Beton Tbk as of December 31, 2024, after the change on May 17, 2024, is as follows:

After Changes

Appreciation And Closing

The Board of Commissioners of PT Wijaya Karya Beton Tbk sincerely appreciates all stakeholders for their consistent support throughout 2024. This year proves a testament to WIKA Beton’s resilience in encountering external challenges and the ever-evolving industry dynamics. Thanks to the synergy between the Board of Directors, management, and all employees, the Company achieved positive performance despite a challenging environment.

As part of the strategic infrastructure sector, WIKA Beton continues to demonstrate a strong commitment to supporting national development on product innovation and operational efficiency. We appreciate the efforts of the Board of Directors in implementing strategies focused on market diversification, optimizing operational capabilities, and adopting digital technology to enhance competitiveness. These strategic initiatives have led the Company toward a stronger and more competitive position in domestic and international markets.

We also extend our highest appreciation to the shareholders for their trust, and to our business partners and customers for their continued tight collaboration with the Company. The support from all parties has been the foundation for WIKA Beton’s sustained growth. Lastly, the Board of Commissioners expresses our gratitude to all WIKA Beton employees for their dedication and hard work throughout this year.

We are confident that with a spirit of collaboration and innovation, WIKA Beton will continue to grow as an outstanding company and a source of national pride.