Company’s Shares Buy Back Program

The dampened global economic outlook has affected the global index exchange, including IDX Composite (IHSG). In order to protect the Company’s share price and capital market value in a significantly fluctuated market condition, the Company has repurchased its shares (Buy Back) that are issued and registered in Indonesian Stock Exchange (IDX) by referring to Regulation of Financial Service Authority of Indonesia (“OJK”) No.02/POJK.04/2013 dated August 23, 2013 regarding Shares Buyback Issued by Issuer or Public Company in Significantly Fluctuated Market Condition, and OJK Circular Letter No. 22/SEOJK.04/2015 dated August 21, 2015 regarding Other Condition as Significantly Fluctuated Market Condition. In the implementation of shares Buy Back, the Company has allocated fund as much as Rp116,200,000,000 (one hundred and sixteen billion and two hundred million Rupiah), or approximately 2% (two per cent) of the Company’s paid up capital. The Buy Back period was conducted from 1 October – 30 December 2015. The Company has repurchased 6,308,200 shares, with average buy back of Rp3,303.6108 per share, or total purchase value of Rp20,864,845,305 (including transaction cost).

Transfer of Company’s Buyback Shares

In accordance with Regulation of Financial Services Authority No: 2/POJK.04/2013 Article 12.1 stating : “If there is remaining repurchased shares held by the Company for 3 (three) years since shares repurchase completion, the Company must begin to transfer the repurchased shares within a period of no more than 2 (two) years.“

To perform the transfer of Company’s buyback shares as stipulated in the Regulation of Financial Services Authority No: 2/POJK.04/2013 Article 16.1 which states “The Company must announce information disclosure to the public, and submit the announcement proof and its supporting documents to the Financial Services Authority (OJK) no more than 14 (fourteen) days before the selling of repurchased shares is executed”.

The Company has announced the Disclosure of Information in relation to the Transfer of Company’s Buyback Shares on 31 October 2018, stating the following information:

1. The Company has appointed PT Danareksa Sekuritas to carry out the transfer/sale of shares
2. The period of Company’s Shares Buyback is from 15 November 2018 to 15 November 2020
3. Company’s shares to be transferred amounted to 63,082,000 (sixty three million and eighty two thousand) shares (upon stock split ratio of 1:10 carried out by the Company on 25 May 2018)

Mechanism of all transfer/sale of shares was carried out in pursuant to Regulation of Financial Services Authority No: 2/POJK.04/2013.

Implementation of ESOP & MSOP

Currently, MAP does not offer any Employee Stock Ownership Plan (ESOP) and Management Stock Ownership Plan (MSOP).

History of other securities & securities rating

On 16th December 2009, the Company issued Mitra Adiperkasa I Bond Year 2009 with fixed interest rate and Sukuk Ijarah Mitra Adiperkasa I Year 2009, with total amount of Rp364,000,000,000. Both Bonds and Sukuk Ijarah were issued in 2 series; Series A matured in 3 years with 12.25% fixed interest rate per annum, and Series B matured in 5 years with 13% fixed interest rate per annum. Bonds and Sukuk Ijarah were listed on Indonesia Stock Exchange. In relation to the issuance of Bonds and Sukuk, the Company underwent a rating process conducted by domestic rating agency, PT Pemeringkat Efek Indonesia (Pefindo) which resulted in the following rating accordingly: idA+ (Single A plus; Stable Outlook) and idA+(Sy) (Single A plus Syariah; Stable Outlook). All proceedings attained from this Bonds and Sukuk Ijarah emission were used for Company’s early repayment of syndicated loan Tranche B amounting to USD16,500,000 and JPY3,477,000,000, which matured on 8 June 2010

Acting as the Underwriters for these Bonds and Sukuk Ijarah emission were PT Danareksa Sekuritas, PT HSBC Securities Indonesia, PT Indo Premier Securities and PT Standard Chartered Securities Indonesia. PT Bank CIMB Niaga Tbk was also appointed as Trustee in this issuance of Bonds and Sukuk Ijarah. The Bonds and Sukuk Ijarah for Series A and Series B were fully paid on 16 December 2012 and 16 December 2014, respectively.

On 12 December 2012, the Company issued new bonds – Continuous Bonds Mitra Adiperkasa I Phase I Year 2012 with nominal amount of Rp500 billion. The Bonds were issued in 2 Series; Series A matured in 3 years with 7.95% fixed interest rate per annum, and Series B matured in 5 years with 8.45% fixed interest rate per annum. Proceeds from the offering allowed MAP to repay its principal Bonds and Sukuk Ijarah Series A which matured on 16 December 2012 – as well as for meeting the Company’s working capital requirements.

For the issuance, the Bonds received ‘idAA-‘ (double A minus) rating from domestic rating agency, PT Pemeringkat Efek Indonesia (Pefindo). Acting as the Underwriters for these Bonds emission were PT Indo Premier Securities and PT Mandiri Sekuritas. PT Bank CIMB Niaga Tbk was also appointed as Trustee in this issuance of Bonds. The Continuous Bonds Mitra Adiperkasa I Phase I Year 2012 for Series A, amounting Rp53 billion was fully paid on 12 December.

On 20 February 2014, the Company issued new bonds – Continuous Bonds Mitra Adiperkasa I Phase II Year 2014 with total amount of Rp650 billion. The Bonds were issued in 2 Series; Series A, amounting to Rp370 billion, matured in 3 years with 10.9% fixed interest rate per annum, and Series B amounting to Rp280 billion will mature in 5 years with 11.5% fixed interest rate per annum. The entire proceeds from the offering will be used to repay some of the Company’s bank loans in attempt to reduce the company’s creditors, made in accordance to the Payment Schedule for each loan. For the issuance, the Bonds have received ‘idAA-‘ (double A minus) rating from domestic rating agency, PT Pemeringkat Efek Indonesia (Pefindo). Acting as the Underwriters for this Bonds emission were PT Indo Premier Securities and PT Mandiri Sekuritas. PT Bank CIMB Niaga Tbk was also appointed as Trustee in this issuance of Bond. The Continuous Bonds Mitra Adiperkasa I Phase II Year 2014 for Series A, amounting Rp370 billion was fully paid on 20th February 2017.

On 19 September 2014, the Company issued new bonds – Continuous Bonds Mitra Adiperkasa I Phase III Year 2014 with total amount of Rp350 billion. The Bonds were issued in 2 Series; Series A, amounting Rp150 billion matured in 3 years with 10.3% fixed interest rate per annum, and Series B amounting Rp 200 billion will mature in 5 years with 10.9% fixed interest rate per annum. The entire proceeds from the offering will be used to repay some of the Company’s bank loans, made in accordance to the Payment Schedule for each loan. For the issuance, the Bonds have received ‘idAA-‘ (double A minus) rating from domestic rating agency, PT Pemeringkat Efek Indonesia (Pefindo).

Acting as the Underwriters for this Bonds emission were PT Indo Premier Securities and PT Mandiri Sekuritas. PT Bank CIMB Niaga Tbk was also appointed as Trustee in this issuance of Bond. The Continuous Bonds Mitra Adiperkasa I Phase III Year 2014 for Series A, amounting Rp 150 billion was fully paid on 19 September 2017.

Based on the Rating Assessment made by PT Pemeringkat Efek Indonesia (PEFINDO) per 12 September 2018 of Continuous Bonds Mitra Adiperkasa I Phase II Year 2014 Series B amounting Rp 280 billion, with 5-year maturity and 11.5% per annum. For the issuance, the Bonds have received ‘idAA‘ (double A). Based on the Rating assessment made by PEFINDO per 10 September 2019 of Continuous Bonds Mitra Adiperkasa I Phase III Year 2014 Series B amounting Rp200 billion, with 5-year maturity and 10.9% per annum, the Bonds have received ‘idAA’ (double A) rating.

The Continuous Bonds Mitra Adiperkasa I Phase II Year 2014 for Series B, amounting Rp 280 billion was fully paid on 20 February 2019, and The Continuous Bonds Mitra Adiperkasa I Phase III Year 2014 for Series B, amounting Rp200 billion was fully paid on 19 September 2020.