APPROVED BY THE DECISION OF THE BOARD OF DIRECTOR’S CIRCULAR RESOLUTION IN LIEU OF THE BOARD OF DIRECTOR’S MEETING OF PT BBN AIRLINES INDONESIA NO.: SK-BOD-2/12/BBN/2023

ANTI-CORRUPTION AND ANTI-BRIBERY POLICY

DEFINITIONS

1. For the purposes of this Policy, the following definitions shall apply:

In this Policy:

1. headings are for ease of referenceonly;
2. unless otherwise indicated by the context, words importing the singular number only shall include the plural and vice versa, and words importing neuter gender shall include the masculine and feminine gender;
3. reference to Clause or Annex, unless otherwise specified, shall mean a reference to a Clause or an Annex of this Policy;
4. terms “include” or “including” shall mean “include without limitation” or “including without limitation”, i.e. “include” or “including” is used as introducing an illustrative and non-exclusive list.

INTRODUCTION

1. The purpose of this Policy is to:
   1. set out the responsibilities of the Associated Persons in observing and upholding the Company’s position on Bribery and Corruption;
   2. set out the mandatory requirements that shall be met before accepting, offeringor providing any gifts, entertainment and hospitality by the Associated Persons;
   3. provide information and guidance to the Associated Persons on how to recognize and deal with Bribery and Corruption issues.
2. This Policy applies to all Associated Persons and sets out the general requirements for countering Bribery and Corruption in the Company,in exception of clauses, where it is stated that this Policy applies only to the Employees.
3. This Policy might be subjectto the laws of applicable jurisdiction that may impose stricterrules on Bribery and Corruption regulations. Any of such locally established regulations or mandatoryrequirements shall be respected and reported to the Risk Management Department to align with this Policy and implementation procedures by email at [email protected].
4. The Company takes a zero-tolerance approach to Bribery and Corruption and is committed to acting professionally, fairly and with integrityin all business dealings and relationships whereverthe Company operates and implementing and enforcing effective systems to counter Bribery and Corruption.

ANTI-CORRUPTION PRINCIPLES AND PROHIBITED ACTIONS IN THE COMPANY

1. The Associated Persons when conducting the Company’s business or acting for and on behalf of the Company shall:
   1. not tolerate, permit or become involved in any Corruption or Bribery in connection with the Company’s business activities, either in public or in the private sector;
   2. promote a preventive culture within the Company committed to zero tolerance towards Corruption and Bribery in connection with the Company’s business activities;
   3. conduct the Company’s business in compliance with this Policy;
   4. not use funds or assets of the Company in violation of this Policy.
2. The Associated Persons shall not:
   1. give, promise to give, or offer, any Advantage to any Person with the expectation or hope that a business advantage will be received, or to reward a business advantage already given;
   2. give or accept any Advantage to or from any Person during any commercial negotiations or tender process, if this could be perceived as intended or likely to influence the outcome;
   3. accept any Advantage from any Person that the Associated Person knows or suspects is offered with the expectation that it will provide business advantage for such person or anyone else in return;
   4. accept hospitality from any Person that is unduly lavisher extravagant under the circumstances.
   5. give, promise to give, offer or accept gift to or from any Public Official, except as otherwise set forth in clause 5.3 below;
   6. threaten or retaliate against another Person who has refused to commit a Bribery offense or who has raised concerns in accordance with clause 12 of this Policy.
   7. engage in any other activity that might lead to a breach of this Policy.

MEASURES FOR MANAGING BRIBERY AND CORRUPTION RISKS IN THE COMPANY

1. Risk assessment
   1. In order to identify, analyze, assess and prioritize Corruption and Bribery risks pertinent to the Company, the Risk Management Department undertakes to carry out Corruption and Bribery risk assessment at least once in every 2 years, and as and when necessary.
   2. Corruption and Bribery risk assessment shall be performed according to the Avia Solutions Group PLC Compliance framework and give consideration to:
      1. country risk, which includes an assessment of the overall risks of Corruption and Bribery associated with a particular jurisdiction where the Company operates.
      2. transactional risks (such as charitable or political contributions, licenses and permits, transactions relating to public procurement, etc.) which includes an assessment of the risks associated with business transactions undertaken by the Company.
      3. business opportunity risk, which includes the risk that pursuing or obtaining business opportunities may result in acts of Bribery or Corruption.
      4. business partnership risk (such as the use of intermediaries, participation in the joint venture, etc.), which includes risks deriving from relationships with or partnership with the Counterparties.Based on the results of the risk assessment additional controls in anti-Bribery and anti- Corruption areas may be implemented

2. Due diligence of the Counterparties

1. The Company seeks to collaborate with Counterparties who do not engage in Bribery or Corruption.
2. The Company’s zero-tolerance approach to Bribery and Corruption shall be communicated to all Counterparties at the outset of business relationship with them and as appropriate thereafter. Such acknowledgment may be made by way of inclusion of anti-Bribery and anti-Corruption clauses in the agreements and other arrangements of the Company.
3. All Counterparties are subject to the Counterparty due diligence process, which is implemented in the Company according to the Company’s Anti-Money Laundering and Counter-Terrorist Financing Policy and the Company’s Counterparty Onboarding and Due Diligence Procedure.
4. During the Counterparty onboarding process in accordance with the Company’s Counterpart
5. Onboarding and Due Diligence Procedure the Counterparty’s risks related to Bribery and Corruption, such as identification of the Politically Exposed Persons, a conviction for Corruption or Bribery offenses by the Counterparty, etc., are assessed and relevant measures to mitigate the risks are implemented.
   
   3.  Financial controls
   The Company undertakes: 
   a. to keep the Company’s books, records and accounts that in reasonable detail accurately and fairly reflect the transactions and dispositions of its assets.
   b. to establish and maintain an adequate internal control system of accounting.

GIFTS, ENTERTAINMENT AND HOSPITALITY

1. The giving and accepting of gifts, entertainment or hospitality by the Associated Persons shall be permitted if all of the following requirements are met:
   1. it is not made with the intention of influencing a Person to obtain or retain business or a business advantage, or to reward the provision or retention of business or a business advantage, or in explicit or implicit exchange for favors or benefits.
2. gifts, entertainment and hospitality shall serve a legitimate business purpose, meaning that it facilitates actual business discussions or fosters better business relations.
3. it is given in the Company’s name, not in the Associated Person’s name;
4. it shall not include cash or a cash equivalent (such as gift certificates or vouchers);
5. it is appropriate in the circumstances, takinginto account of the reasonfor the gift, its timingand value;
6. it is given openly, not secretly; and
7. it complies with all applicable legal requirements.
   1. Examples of gifts, entertainment and hospitality include the receipt or offer of gifts, meals or tokens of appreciation and gratitude, invitations to events or other social gatherings, in connection with matters relating to the business of the Company. The Associated Persons shall be permitted to give or receive the Corporate Gifts to or from the Counterparties when those are given in compliance with the requirements set out in clause 5.1.
   2. The Associated Persons are prohibited from providing gifts, entertainment, hospitality or anything of value to or receiving them from any Public Official (or their close relatives, or families and business associates). It is allowed to give a Corporate Gift to the Public Official only when appropriate and permitted by the applicable laws.

CHARITABLE AND POLITICAL CONTRIBUTIONS, SPONSORSHIP

1. The Company and the Associated Persons shall only make charitable donations and sponsorship that are legal and ethical under local laws and practices.
2. The following criteria apply for the approval of a donation or sponsorship:
   1. the activity provides an opportunity for community engagement or fostering relationships without business gain.
   2. donation or sponsorship shall not be made or offered as part of the tender, contract renewal or prospective business relationship.
   3. donation or sponsorship shall comply with the applicable legal requirements.
3. The Company and the Associated Persons shall not make contributions to political parties.
4. The Associated Persons may participate in political activities on an individual basis, with their own money and their own free time. The Company will not reimburse any political contributions made by the Associated Persons on their own behalf.

FACILITATION PAYMENTS AND KICKBACKS

1. The Company and the Associated Persons shall not make and shall not accept the Facilitation Payments or the Kickbacks of any kind.
2. The Associated Persons shall avoid any activity that might lead to the Facilitation Payment or Kickback being made or accepted by the Company or on the Company’s behalf, or that might suggest that such payment will be made or accepted. If the Associated Person is asked to make a payment on the Company’s behalf, the Associated Person should always be mindful of what the payment is for and whether the amount requested is proportionate to the goods or services provided. If the Associated Person has any suspicions, concerns or queries regarding any payment, the Associated Person shall address it in accordance with clause 12 of this Policy.
3. LOBBYING The Associated Persons shall carry out any Lobbying activities only strictly in accordance with the legal requirements applicable in the relevant jurisdictions where such activities are performed.

CONFLICTS OF INTEREST

1. The Associated Persons shall avoid the Conflicts of Interest and shall perform their work for the Company conscientiously, honestly and in accordance with the best interests of the Company.
2. While working for the Company the Associated Persons shall not abuse their position, misuse confidential knowledge for personal or third-party gain or have any director indirect involvement in any business in conflict with the Company’s commercial interests or that in any way comprises their independence or impartiality.
3. Each Employee shall declare its Conflicts of Interests in accordance with the Company’s Conflict of Interest Policy.

PREVENTION OF NEPOTISMAND CRONYISM

1. The Company shall not tolerate and prohibits the Nepotism and the Cronyism among its Employees.
2. The Employees are selected for the job/position based on their competence, knowledge and experience and may be recruited/appointed for the job/position solely on the basis of their competence, knowledge and experience.
3. The Company does not toleratethe patronage of family membersof the Employees on the basis of their family or other personal relations.

ROLES AND RESPONSIBILITIES

1. Every Associated Person of the Company is responsible for complying with the requirements set out in this Policy, also ensuring that this Policy is observed within his or her area of activity as well as undergoing regular and appropriate trainings.
2. The Company’s CEO (manager) is responsible for:
   1. ensuring that the Policy is implemented in the Company;
   2. ensuring that individuals and entities for which they are responsible (if any) understand and adhere to this Policy;
   3. organizing the trainingin the Company to familiarize employees in chargewith the requirements of the Policy.
3. Chief Compliance Officer is responsible for:
   1. overseeing the implementation of this Policyby the Company;
   2. submitting regular reportsto the Board of Directorsof Avia Solutions Group on Bribery and Corruption risks and issues.
4. Risk Management Department is responsible for:
   1. overseeing the design and development of this Policy;
   2. developing core procedure documents that form part of this Policy;
   3. monitoring the effectiveness of this Policy;
   4. identifying and researching potential Corruption and Briberycases;
   5. maintaining a registerfor reported Corruption and Bribery cases;
   6. providing anti-Bribery and anti-Corruption trainingfor the Associated Persons.

RAISING A CONCERNAND REPORTING POSSIBLEBREACHES OF THIS POLICY

1. The Associated Persons are encouraged to raise concerns about any issue or suspicion of Bribery, Corruption or other breach of this Policy at the earliest possible stage.
2. If the Associated Person is offered the Bribe, or are asked to make the Bribe, the following actions should be taken by the Associated Person:
   1. refuse it and try to identify the person(s) who made the offer;
   2. maintain the evidence of possible act of Bribery (this may be useful as evidence in the pre-trial investigation);
   3. if possible, find a witness (e.g.a colleague);
   4. report the case in accordance with clause 12.3.
   5. If the Associated Person believes or suspects that any Bribery,Corruption or other breach of this Policy has occurred or may occur, the Associated Person shall report it as soon as possible via the following whistleblowing reporting channels established by the Company:
      1. personally, by contacting the Risk Management Department;
      2. by email [email protected];
      3. by submitting a report through the whistleblowing reporting link available on the website of the Company (the report can be submitted anonymously via this channel).
   6. The report will be assessed and relevant actions will be taken according to Company’s Whistleblowing Policy.
   7. Examples of circumstances that might raise Bribery or Corruption red flags and might be reported or discussed with the Risk Management Department are provided in the Annex 1.
   8. If the Associated Person is unsure about whether a particular act constitutes Bribery or Corruption, it should consult with the Risk Management Department by email [email protected].
   9. The Company aims to encourage openness and shall support any Associated Person who raises genuine concerns in good faith under this Policy, even if they turn out to be mistaken.
   10. The Company is committed to ensuring no Associated Person suffers any detrimental treatment as a result of refusingto take part in Briberyor Corruption, or because of reporting in good faith their suspicion that an actual or potential Bribery or other Corruption offence has taken place or may take place in the future. Detrimental treatment includes dismissal, disciplinary action, threats or other unfavorable treatment connected with raising a concern. If the Associated Person believes that he/she has suffered any such treatment, the Company encourages him/her to immediately raise a concern with the Risk Management Department by email [email protected].

TRAINING AND AWARENESS

1. The Company provides anti-Bribery and anti-Corruption trainings to the Employees to ensure that:
   1. the Employees are competent;
   2. the Employees are supervised and understand their obligations.
2. The Company requiresthat all Employeespossess a generalawareness of Briberyand Corruption risks. For this purpose, each Employee shall once a year undergoa general mandatory anti-Bribery and anti- Corruption training. Such trainings also form part of the inductionprocess for the Employees who work for the Company.
3. The Employees who are workingin areas identified by the Companyas more susceptible to Bribery and Corruption shall once a year undergo advanced training tailored to the risks they may be facing.
4. The Associated Persons (except Employees) and Counterparties also have the possibility to conduct general anti-Bribery and anti-Corruption training, which is available on Company’s website.
5. The Company ensures that evidence of training is properly documented and stored.

LIABILITY

1. The Associated Person’s failure to comply with this Policy may lead to the following consequences for the Associated Person under applicable laws:
   1. personal criminalliability followed by fines or imprisonment;
   2. actions initiated by the Company, including termination of the employment agreement or civil contract, cancellation of given authorisations, etc.;
   3. personal reputational damage.
2. The Company shall not pay fines and/or penalties imposed against any Associated Person for the violation of the applicable anti-Corruption and anti-Bribery laws. The Associated Person shall compensate all and any damages (e.g. arising out of paid fines, penalties, etc.) incurred by the Company due to the Associated Person’s failure to duly comply with the applicable anti-Corruption and anti-Bribery laws, unless otherwise provided in the applicable laws.

RETENTION AND RECORD KEEPING

1. The Company retains records concerning the Counterparties and other information relevant to this Policy, including decisions and documentation, related to the management of Bribery and Corruption risks.
2. All records shall comply with relevant data retention, data privacy and data protection laws and regulations.

REVIEW OF THIS POLICY

1. The Policy is reviewed and updated at least every 2 years. The review of the Policy is initiated by the Risk Management Department.

ANNEX 1

BRIBERY AND CORRUPTION INDICATORS

This is the list of examples of circumstances that should raise Bribery or Corruption red flags. If you notice any of the below while working for the Company, please consult Risk Management Department by email risks@aviasg.com or report it in accordance with Section 12 of this Policy.

• You become aware that a Counterparty (including its sub-agents or its employees) engages in, or has been accused of engaging in, improper business practices.
• You learn that a Counterparty has been subjectto criminal enforcement actions or civil actions for acts of or suggesting illegal, improper or unethical conduct.
• You learn that a Counterparty has been or is subject to on-going formal or informal investigation by law enforcement authorities.
• You learn that otherPersons have terminated the Counterparty as their counterparty for improper conduct.
• You learn that a Counterparty has a reputation for paying Bribes, or requiring that Bribes are paid to them, or has a reputation for having a “special relationship” with Public Officials.
• A Counterparty refuses to agree to comply with the anti-corruption and anti-bribery clausesin an agreement.
• A Counterparty makes atypical requests for anonymity or confidentiality in business deals or if they refuse to divulge the identity of owners, officers or other principals.
• A Counterparty or the Public Official insistson receiving a commission or fee paymentbefore committing to sign up to a contract, or carrying out a government function or process.
• A Counterparty demands lavish entertainment or gifts before commencing or continuing contractual negotiations or provision of goods or services.
• A Counterparty demands that a charitable contribution or sponsorship is given to a charity or group before commencing or continuing contractual negotiations or the provision of goods or services.
• A Counterparty requests the provision of employment or some other advantage to a friendor relative.
• A Counterparty requestspayment in cash and/or refusesto sign a formal commission or fee agreement, or to provide an invoice or receipt for a payment made.
• A Counterparty requests that payment is made to a countryor geographic locationdifferent from where the Counterparty resides or conducts business.
• A Counterparty requests paymentarrangements that raise local law issues such as paymentin another currency.
• A Counterparty requests that payment is made to a personalrather than a business account.
• A Counterparty requests a commission or other similarpayment substantially above the marketrate.
• A Counterparty requests that payments be made to two or more bank accounts.
• A Counterparty requests an unexpected additional fee or commission to “facilitate” a service.
• A Counterparty requests that a paymentis made to “overlook” potentiallegal violations.
• A Counterparty’s invoicevaguely describes the services providedor lacks detail (for example, “services rendered”).
• A Counterparty requests that the commission is paid in multiple (smaller value) tranches.
• A Counterparty’s invoice for a commission or fee payment that is greater than the contracted commission rate.
• You are offered an unusually generous gift or offered lavish hospitality by the Counterparty.
• A lack of transparency of the Counterparty’s expenses and accounting records.
• The Counterparty uses suspicious statements or terminology including ‘to get business settled’ or ‘to take care of something/someone’.

A Public Official has violated the law, misconducted public property, abused a power, was involved in Bribery, made any other Corruption-related transactions or operations