PT Kawasan Industri Jababeka (KIJA) investor relations material

Executive summary

• The consolidated financial statements received an unqualified (clean) audit opinion, confirming fair presentation in accordance with Indonesian Financial Accounting Standards.

• Real estate segment revenue reached Rp 2,399,424 million, with significant financing components in some contracts, requiring careful management judgment and audit focus.

• The audit highlighted the complexity of revenue recognition for contracts with significant financing components, especially in installment sales of property.

Risk factors and uncertainties

• Key audit matter identified was the propriety of accounting for revenues with significant financing components, requiring management to estimate appropriate discount rates and assess customer credit risk.

• The audit procedures included detailed contract reviews and sensitivity analysis of discount rates, reflecting the inherent estimation uncertainty in revenue recognition.

Significant events and developments

• The audit report emphasized that the additional standalone financial information is fairly stated in relation to the consolidated financial statements.

• No material inconsistencies or misstatements were found in the other information reviewed by the auditors.