TURNAROUND,

1 Ikhtisar Kinerja 2018 Laporan Manajemen Profil Perusahaan Analisis dan Pembahasan Manajemen Tata Kelola Perusahaan Tanggung Jawab Sosial Perusahaan Laporan Keuangan 2018 Performance Highlights Management Report Company profile Management Discussion and Analysis Good Corporate Governance Corporate Social Responsibility Financial Report i PT INDOCEMENT TUNGGAL PRAKARSA Tbk. UNLOCKING THE FUTURE. TURNAROUND, ANNUAL REPORT 2018. Laporan Tahunan Annual Report 2018. TURNAROUND, UNLOCKING THE FUTURE. Setelah melalui masa sulit yang ditandai dengan harga After navigating challenging times marked by a long jual semen yang terus menerus tertekan dalam tiga tahun period of sluggish cement selling prices in the past three terakhir yang disebabkan oleh pertumbuhan pasokan yang years due to the domestic market's oversupply and very jauh melebihi tingkat permintaan semen dalam pasar low utilization, in the third quarter of 2018 cement prices domestik dan utilisasi yang sangat rendah, pada triwulan began to crawl up amid the continued supply glut.

2 The III harga semen mulai bergerak naik di tengah kondisi Company embarked on a new momentum by initiating oversupply yang masih berlanjut. Perseroan menginisiasi an increase in product prices and conducting a series of momentum baru dengan menjadi pelopor dalam strategic measures to improve product sales and marketing menaikkan harga produk dan melakukan serangkaian performance as well as production supply chain. The langkah strategis guna peningkatan performa dalam Company believes, these strategic moves will create new penjualan dan pemasaran produk maupun rantai pasokan business opportunities that can provide a positive impact produksi. Dengan perubahan yang dilakukan, Perseroan for the Company. This is a TURNAROUND, UNLOCKING.

3 Meyakini akan menciptakan peluang bisnis baru yang THE FUTURE , as a turning point for the Company to start berdampak positif bagi Perseroan, TURNAROUND, a new chapter as one of the prominent cement companies UNLOCKING THE FUTURE , menjadi titik balik bagi in the country. Perseroan memulai babak baru sebagai salah satu perusahaan semen terkemuka di tanah air. ii LAPORAN TAHUNAN 2018 PT INDOCEMENT TUNGGAL PRAKARSA Tbk. KESINAMBUNGAN TEMA. THEME CONTINUITY. 2017 KELINCAHAN DALAM MEMENANGKAN PERSAINGAN. THE AGILITY TO WIN COMPETITION. Sebagai pemain yang berpengalaman di industri semen As a player with experience in the national cement nasional, Indocement telah menjalankan sejumlah industry, Indocement has undertaken a number of langkah strategis untuk menyikapi kondisi yang penuh strategic measures to address challenging conditions tantangan untuk menghasilkan kinerja yang baik.

4 Di to produce good results. As a mature company, usianya yang sudah tidak muda lagi, Indocement Indocement continually needs to be agile to maintain dituntut untuk terus bergerak dengan lincah agar dapat its leadership position in the national cement industry. memertahankan posisi kepemimpinannya di industri semen nasional. 2016 MEMBUAT PERBEDAAN DI PASAR YANG KOMPETITIF. MAKING A DIFFERENCE IN A COMPETITIVE MARKET. Dengan terus menggali dan mewujudkan keunggulan By continuing to explore and realize the advantages yang membedakan Indocement dari para kompetitor, that sets Indocement apart from its competitors, Indocement yakin dapat mengatasi segala kendala Indocement believes it can overcome all the obstacles dan tantangan serta menciptakan dan meningkatkan and challenges while creating and maintaining healthy pertumbuhan usaha yang sehat dan berkelanjutan.

5 And sustainable business growth. 2015 40 TAHUN PERJALANAN MEMBANGUN SUKSES BERKELANJUTAN. 40 YEARS JOURNEY OF BUILDING SUSTAINABLE SUCCESS. Memasuki 40 tahun kiprahnya di industri semen During its 40 years of work in the Indonesian cement Indonesia, Indocement berhasil memajukan industry, Indocement has managed to advance its bisnisnya dan akan terus berupaya menciptakan dan business and will continue its efforts to create and meningkatkan pertumbuhan usaha yang sehat dan promote a healthy and sustainable business growth, berkelanjutan, sekaligus tetap menjadi yang Kokoh while still maintaining Strong and Reliable presence dan Terpercaya dalam pembangunan bangsa. in nation building. 2014 MELANJUTKAN KINERJA PRIMA DI PASAR YANG BERKEMBANG.

6 MAINTAINING GOOD ACHIEVEMENT IN EXPANDING MARKET. Indocement siap mempertahankan kinerja terbaik dalam Indocement strives to pursue its best achievement in persaingan pasar yang meningkat. expanding market. ANNUAL REPORT 2018 PT INDOCEMENT TUNGGAL PRAKARSA Tbk. 1. DAFTAR ISI 68 Profil Direksi Board of Directors' profile 77 Demografi Karyawan di Bidang Semen Headcount TABLE OF CONTENTS. 80 Program Pendidikan dan Pelatihan Manajemen Management Education and Training Program 82 Struktur dan Komposisi Pemegang Saham Shareholders Structure Kesinambungan Tema and Composition 1 Theme Continuity 86 Kronologis Pencatatan Saham Share Listing Chronology 88 Kronologis Pencatatan Efek Lainnya IKHTISAR Chronology of Other Securities Listing 01 KINERJA 2018 89 Entitas Asosiasi Associated Entities 2018 Performance Highlights 92 Struktur Grup Perusahaan Company Group Structure 6 Ikhtisar Keuangan Financial Highlights 94 Lembaga dan Profesi Penunjang Pasar Modal Capital Market Supporting 9 Ikhtisar Operasional Operational Highlights Institutions and Professions 10 Ikhtisar Saham 95 Website Perusahaan

7 Company Website Share Highlights 98 Alamat dan Wilayah 13 Penghargaan dan Sertifikasi Awards and Certifications Operasional Perusahaan Company's Operational Area and Address 20 Peristiwa Penting 2018. ANALISIS &. 2018 Significant Events LAPORAN. 04 PEMBAHASAN. 02 MANAJEMEN MANAJEMEN. Management Discussion Management Report And Analysis 24 Laporan Dewan Komisaris Board of Commissioners' Report 102 Tinjauan Industri Industry Review 32 Laporan Direksi Board of Director's Report 107 Tinjauan Operasional Operational Review 127 Tinjauan Keuangan PROFIL. Financial Review 03 PERUSAHAAN. Company profile TATA. 46 Identitas Perseroan Company Identity 05 KELOLA. 47 Sejarah Singkat Brief History PERUSAHAAN. Good Corporate Governance 50 Jejak Langkah Milestones 151 Landasan Penerapan Tata Kelola Perusahaan 54 Bidang Usaha Business Activities Corporate Governance Implementation Basis 152 Tujuan Penerapan Tata Kelola Perusahaan yang Baik GCG Implementation Purpose 58 Visi, Misi dan Nilai-Nilai Perusahaan Vision.

8 Mission and Corporate Values 153 Prinsip Tata Kelola Perusahaan Corporate Governance Principles 60 Struktur Organisasi Perusahaan Company Organizational Structure 154 Struktur dan Mekanisme Tata Kelola Perusahaan Corporate Governance Structure and Mechanism 62 Profil Dewan Komisaris Board of Commissioners' profile 157 Pemegang Saham Utama dan Pemegang Saham Pengendali Majority Shareholders and Controlling Shareholders 2 LAPORAN TAHUNAN 2018 PT INDOCEMENT TUNGGAL PRAKARSA Tbk. 2018 Performance Highlights Ikhtisar Kinerja 2018. 170 Dewan Komisaris TANGGUNG. 180. The Board of Commissioners Komisaris Independen Independent Commissioners 06 JAWAB SOSIAL. Laporan Manajemen PERUSAHAAN. Management Report 184 Direksi Board of Directors Corporate Social Responsibility 198 Penilaian Kinerja Dewan Komisaris dan Direksi The Board of Commissioners and Board of Directors Performance Assessment 329 Kebijakan dan Prinsip CSR Indocement 204 Kebijakan Remunerasi Dewan Komisaris dan Direksi The Board of Commissioners and Board of Directors Indocement's CSR Policies and Principles Remuneration Policy 334 Indocement dan SDGs Indocement and SDGs 206 Rapat Dewan Komisaris dan Direksi Meetings of Board of Commissioners and Board of Directors 220 Hubungan Afiliasi Dewan Komisaris.

9 Direksi dan Pemegang 336 CSR & Security Division CSR & Security Division Saham Utama/Pengendali Affiliated Relationship of Board of Commissioners, Board of Directors and Majority/Controlling Shareholders 337 Tanggung Jawab Sosial Perusahaan Profil Perusahaan Terkait Hak Asasi Manusia Company profile 222 Kebijakan Keberagaman Komposisi Dewan Komisaris dan Direksi Corporate Social Responsibility Composition Diversity Policy of The Board of Commissioners Related to Human Rights and Board of Directors 231 Komite di Bawah Dewan Komisaris 340 Tanggung Jawab Sosial Perusahaan Terkait Operasi Yang Adil Committees Under The Board of Commissioners Corporate Social Responsibility 232 Komite Audit Audit Committee Related to Fair Operations 242 Komite Nominasi dan Remunerasi Nomination and Remuneration Committee 344 Tanggung Jawab Sosial Bidang Pelestarian

10 Lingkungan Hidup Analisis dan Pembahasan Manajemen 251 Komite di Bawah Direksi Management Discussion and Analysis Corporate Social Responsibility Committees Under Board of Directors Related to Environmental Sustainability 255 Sekretaris Perusahaan Corporate Secretary 364 Tanggung Jawab Sosial Bidang Ketenagakerjaan, 259 Hubungan Investor Investor Relations Kesehatan, dan Keselamatan Kerja Social Responsibility Related 262 Audit Internal Internal Audit to Employment, Occupational Health, and Safety 271 Akuntan Publik Public Accountant 373 Tanggung Jawab Sosial Perusahaan Bidang Sosial Kemasyarakatan 273 Manajemen Risiko Risk Management Corporate Social Responsibility Related to Social Community 278 Sistem Pengendalian Internal Internal Control System 281 Permasalahan Hukum 386 Tanggung Jawab Sosial Perusahaan Good Corporate Governance Terhadap Pelanggan dan Mutu Tata Kelola Perusahaan Legal Issues Social Responsibility Related 281 Sanksi Administratif Administrative Sanction to Customers and Quality 282 Akses Informasi dan Data Perusahaan LAPORAN.