In accordance with the Articles of Association, the honorarium for members of the Board of Directors is determined at the Annual SGM. The SGM may authorize the Board of Commissioners to determine the amount and distribution of the honorarium. The amount of remuneration for each member is determined according to the function and competence of each member. The total remuneration received by the Board of Directors is Rp.4,007,591,200 for 2021.

The Board of Commissioners' remuneration policy is determined in the SGM by giving authority to the Board of Commissioners to determine the amount and distribution of the honorarium, through indicators for determining remuneration. The total remuneration received by the Board of Commissioners is Rp.1,456,080,250 for 2021.

Risk management is a set of procedures and methodologies used to identify, measure, monitor and control risks arising from business activities. Effective risk management will allow the Company to have greater control in achieving the right balance between acceptable risk and estimated risk. Indications of risk inherent in the company's business and efforts to reduce the level of risk are as follows:

1. Production Risk.
   As a company with integrated facilities, which include aluminum smelting furnaces, dies, press machines, surface finishing facilities (anodizing and painting), complete equipment for high-precision products (precision tools), ladder division, trading division and has subsidiaries. which is engaged in the construction sector (applicator), the Company is required to ensure that each process department always produces the best in order to avoid correction and revision costs as well as delays in delivery time. Therefore, a risk and opportunity review is always carried out in every line related to production. Thus, for every risk, if it occurs, the Company already has a plan for handling it.
2. Risk of Availability and Quality of Raw Materials.
   To meet the availability of raw materials with quality that is in accordance with what is needed in the production process, there are two vital things that are interrelated to avoid the risk of stopping the production process. Therefore, mitigation is carried out by controlling the inventory of main raw materials originating from a minimum of 4 foreign suppliers and 1 domestic supplier accompanied by a long-term purchase contract of at least 1 year for each supplier and ensuring the suitability of the composition of raw materials ordered by conducting an Incoming Inspection.
3. Financial Risk.
   The Company has debts to several banks, both in the form of investment credit or working capital as well as Letters of Credit (LC) for the purchase of imported raw materials in foreign currencies at different rates. For this reason, the Company seeks to minimize exposure to foreign currency exchange differences by conducting a Trust Receipt (TR) using the Rupiah value which has reached 80% of the total purchases using the LC Import facility.
4. Business Competition Risk.
   Aluminum products and construction services are highly competitive. To be able to compete in the global market, the Company has made several efforts, among others, by increasing the number of production, quality control, cost efficiency and diversification of more valuable products into the alternative energy sector which is widely used as a frame and framework for solar panels for power generation. This is done by the Company to follow trends that are much needed and demanded by consumers, in terms of supporting energy savings that have an impact on pollution and global warming.

The Whistle Blowing System (WBS) is a means of communication to report actions related to acts of violation or alleged violations, both against the law, code of ethics and/or conflicts of interest committed by the company's internal parties. The implementation of WBS is expected to be able to overcome the limitations of the internal control system and provide guarantees for early detection of violations that occur.

Submission of Violation Reports
Submission of violation reports is carried out in 2 ways, namely directly and indirectly. Directly by reporting directly to the Personnel, Security, Supervisor and Plant Manager. Indirectly, namely reporting through other means such as suggestion boxes, email, telephone and mobile phones.

Protection for Reporters
The Company will ensure the safety of the whistleblower and the reporter will receive recognition and appreciation from the Company in the form of a thank you from the management and record the condition of the employee concerned with a separate assessment.

Handling and the Party Managing Complaints
Each complaint or reporting disclosure is carried out by a WBS administrator team formed by the Board of Directors to conduct audits, records and corrective actions as well as the imposition of sanctions on the reported party. It is also obligatory to communicate with the local police if things are found that are suspected of being serious and certain violations.

Incoming and Processed Complaints in 2021
In 2021, no complaints or reports were received and handled by the Company.

Social and environmental responsibility (Corporate Social Responsibility - CSR) is the Company's commitment to participate in sustainable economic development in order to improve the quality of life and the environment that is beneficial, both for the Company itself, the local community and society in general by taking into account the expectations of stakeholders, in line with established laws and norms of behavior and integrated with the organization as a whole. The cost of implementing CSR in the Company is carried out in a centralized manner by the Group amounting to Rp.3,477,677,609,- with the Company's contribution of Rp.786,520,750 for 2021.

Environment
The Company is committed to complying with laws and regulations and other requirements related to environmental management, preventing environmental pollution, pursuing energy and natural resource efficiency and empowering the environment, including:

• The use of natural gas that is more environmentally friendly for the production process of smelting and heating, with the impact of lower pollution levels.With Regenerative Burner technology, the wasted heat from the chimney can be recovered to help the combustion process by 20%.
• Obtain a blue rating for an assessment of waste management correctly, in accordance with the provisions and quality standards required under the law of the Ministry of Environment and Forestry.
• Inspection of waste water samples, ambient air samples and air emissions by the Sidoarjo Regency Environment and Hygiene Service is carried out regularly which is used as a routine UKL-UPL evaluation report.

Employment

• In 2018, the Company signed a Collective Labor Agreement between the Board of Directors and the Management of the SPSI Work Unit to strengthen the relationship between the Company and employees with a validity period of up to 2020 and has been registered with the Department of Manpower and Transmigration of East Java Province. However, until the end of 2021, no agreement has been reached, therefore the Mutual Employment Agreement that is currently in effect will remain valid for at most 1 (one) year, as written in the Law of the Republic of Indonesia Number 13 of 2003 concerning Manpower.
• Semester reporting of Bipartite activities to the Department of Manpower, Transmigration and Population of East Java Province.
• The employee turnover rate in 2021 is 4.42% with 3 main reasons, namely retirement, dissatisfaction with compensation and work facilities provided by the Company.
• The Company ensures the health and safety of all employees by issuing rules and regulations regarding this matter, which includes safety in the work area, a healthy and clean environment, health care for employees, spouses and children to be included in the Indonesian government's health program through the Organizing Agency. Social Security. During 2021, 319 employees of the Maspion Group have held Medical Check-ups.
• Conducting routine testing every month, for drinking water consumed by employees. The test was carried out by the Surabaya Center for Environmental Health and Disease Control Engineering.
• Employee remuneration is provided in the form of salary, annual bonus, THR, gratuities and in kind. For permanent employees, giving in kind is carried out simultaneously with the provision of THR and is given based on years of service with a separate nominal calculation.
• The work accident rate is 1.72% in 2021 with the largest moderate category cases being 54% for a recovery period of 3-21 days.
• The Company conducts regular reports every 3 months to the Head of the Manpower Office of Sidoarjo Regency for Occupational Safety and Health Activities. The activities or training carried out are fire fighting training, evacuation drills, first aid training (First Aid in Accidents), PPE (Personal Protective Equipment) and Chemical Handling.
• Provide opportunities for employees to attend training or seminars conducted by other parties or organized by the Company itself. The trainings that have been attended or organized by the Company include, among others, the Company's Code of Ethics, Customs Trade Partnership Against Terrorism (CTPAT), HIV and AIDS, Procedures for Reporting Problems and Management of Toxic and Hazardous Waste, Air Pollution Control and Wastewater Management.
• Certified employees who have expertise in the field of First Aid in Accidents (P3K), operation of certain equipment or machines such as forklifts and lifting faucets, wastewater treatment operators, operators of hazardous and toxic waste treatment and operation of air pollution control installations.
• The mechanism for complaints on employment issues is contained in the Procedure for Submission of Grievances which can be submitted in writing to the direct supervisor or through the suggestion box. Within 5 working days it will be followed up with a meeting of the Personnel and the employees themselves. Next there will be a meeting with the Factory Manager, if the results of the decision in the meeting do not get an agreement, it will be followed by a meeting with SPSI. Details of the follow-up will be recorded, including investigations, solutions, implementation and deadlines for completion.

Social and Community

• During the 2021 period, the Company has donated 5850 boxes of masks or 292,500 masks, 7000 bars of soap, 2000 fans, 40 air purifiers, 30 tons of rice, 500 packages of basic necessities and other household equipment and supplies distributed through several foundations that in Surabaya, Islamic boarding schools in Malang, Wisma Atlit Jakarta, hospitals in Surabaya, Sidoaro Police, Gresik Police, Sidoarjo Regency Government, Surabaya City Government and East Java Provincial Government to be distributed evenly to people in need.
• Providing material donations and sponsorships for mass vaccine events, assistance to orphanages in Lamongan and several community foundations in Surabaya, as well as construction of public facilities in the factory area.
• Conducting regular blood donors, so that it won an award as one of the best voluntary blood donor companies. For the period of 2021, a total of 353 bags of blood will be obtained, although this is actually not a large number due to social restrictions due to the pandemic.

Product Responsibility

The focal point of responsibility to consumers related to sales transactions for aluminum products carried out by the Company is to ensure that these products are sold with applicable composition and manufacturing standards, according to the specifications desired by consumers and do not have a negative impact on consumers' health.

Technical
The Company works closely with consumers even before the work starts to ensure that consumers' wishes in ideas and designs can be met. For the accuracy of each work the Company uses AutoCAD technology.

Dies Manufacturing
The Company's product development team is able to help consumers to design special dies that can improve the quality of the products produced, one of which is by using a new Vertical CNC machine that is capable of making specifications and high tolerance levels. In addition, the Company also uses CNC machines such as CNC Wire Cut and CNC EDM to produce precise dies.

Extrusion Division
The extrusion division provides both standard and specialized extrusion facilities. Advanced automatic measuring equipment is also used with the ability to accurately measure profile dimensions up to 0.001mm. This level of precision will give consumers the quality they need.

Fabrication Division
This division has received certificates from TUV and Kite Mark for various series of ladders. TUV and Kite Mark are safety standards for metal footstools for household use.

Surface Finishing
The Company is a certified PVDF wet paint applicator manufactured by PPG and Valspar for compliance with the required quality assurance and AAMA specifications in the painting process. This high quality paint comes with a 10-15 year warranty, for both standard and custom colors, and ensures long lasting durability for interior or exterior use. In addition to wet paint, PT INAI is also a certified powder coatings applicator produced by leading suppliers, such as Akzo Noble, Jotun and Dupont.

Establishing Relationships with Customers
During 2021 there are not many programs that can be implemented to establish direct relationships with customers. Many interactions are carried out through electronic mail, telephone and through other electronic devices or social media. This is because the Company strictly maintains the health procedures that have been set by the Government to deal with the emergency period of the Covid-19 pandemic.
As for the efforts made by the Company, only the Loyalty Program is still running, namely the provision of special discounts for customers who have reached a certain tonnage purchase value according to the required contract.

Measurement of customer satisfaction
The Company is always oriented to customer satisfaction, therefore the Company conducts periodic surveys to determine the level of customer satisfaction as part of the process to improve service and especially the quality of products received by customers. The customer satisfaction survey for 2021 has been carried out, with the results of a satisfaction level on a scale of 3.7, the same as in 2020 and 2019. There are several points that improved significantly compared to last year, namely better product quality, organized packing procedures and speed response to consumer complaints. However, there are also those who received a lower rating than the previous year, one of which was the delivery of goods that were not according to the schedule, this was due to the scarcity of containers as a means of transportation. Various solutions have been tried by discussing with transportation service providers and also conveying this problem to the relevant Customs Office.

Consumer Complaints
The Company provides access to customers to submit complaints or other matters relating to products and services through direct marketing staff, telephone, email, fax or the Company's website. During 2021 the number of claims received was 0.23% of the total shipments for a year. There was a decrease of 0.01% and 0.07% when compared to 2020 and 2019. With 3 (three) problems, namely damaged/dented, surface defects as well as excess and deficiency of the number of items sent. All claims, 100% have been properly resolved by the relevant departments and procedures have been evaluated to minimize the possibility of errors in the future.