In order to support the development of its telecommunications network, Smartel applied for Additional Facility to CDB. In relation to such application and to guarantee the other credit facilities that has previously received by Smartel from CDB, the Company and EMU, as affiliates of Smartel as well as shareholders of Smartfren, were requested to participate in providing Shares Guarantee in addition to the shares guarantee that has been provided by Smartfren's ultimate shareholders to CDB. For such Shares Guarantee, the Company and EMU are entitled to receive Guarantee Fee as compensation.

In relation to the above matter, on May 20, 2022, the Company and EMU have signed a Guarantee Fee Agreement (“Transaction”).

This transaction is an affiliated transaction but is not a conflict-of-interest transaction as referred to in POJK 42/2020, since there is no discrepancy between the economic interests of the Company and the personal economic interests of the members of the Board of Directors, members of the Board of Commissioners, and ultimate shareholders of the Company that could harm the Company.