1.

Date of Occurence

18 October 2016

2.

Kind of Information or Material Fact

Closing of 1 (one) furnace ("furnace F4") of flat glass factory in Ancol, Jakarta.

3.

Description of Material Information or Fact

Other Material Information or Facts :

The Company closed the furnace F4 of flat glass factory with a capacity of 150,000 tons p.a, in Ancol, North Jakarta.

Reason of closing:

1. Furnace F4 of flat glass factory in Ancol, has operated since 1993 and has reached its economic lifetime.
2. To fulfill the Regional Regulation (Perda) DKI Jakarta No. 1 of 2012 concerning RTRW and Perda No.1 of 2014 concerning RDTR-PZ which regulates land use change in the location of the Company’s factory in Ancol (Jakarta), based on the new law, the land owned by the Company has changed its usage from industrial and warehousing into a zone of offices, trade and services.

4.

The impact of such event, information or material facts towards operational activities, legal, financial condition or business continuity of the Public Listed Company.

B y the closure of F4 furnace with a capacity of 150,000 tons per year, in Ancol, North Jakarta, then the Company's production capacity will be reduced temporarily from 570,000 tons per year to 420,000 tons per year.

However, the capacity will be increased at the beginning of December 2016 into 630,000 tons per year, in relation with the plan to operate the new factory of flat glass in Cikampek, West Java, which has a production capacity of 210,000 tons per year.

With the closure of F4 furnace until the starting timing of a new furnace in Cikampek, the Company's operational activities will still run normally.

5.

Others Information

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