Dear Distinguished Shareholders and Stakeholders,

2024 was a dynamic period for PT Sarana Menara Nusantara Tbk (“SMN” or “the Company”), marked by a rapidly evolving industry landscape and increasing demand for reliable digital infrastructure. Guided by the theme “Synergy and Diversification: The Twin Pillars of Our Success,” the Company strengthened collaboration across business segments and pursued strategic diversification to unlock new growth opportunities. With a strong commitment to supporting Indonesia’s digital infrastructure development, the Company navigated various challenges through adaptive and innovative strategies. On behalf of the Board of Directors, we hereby present the Board of Directors’ Report as a form of accountability for the management of the Company throughout 2024.

MACROECONOMIC, INDUSTRY OVERVIEW, AND CHALLENGES IN 2024

In 2024, the global and domestic economies saw considerable pressure due to various macroeconomic factors. In Indonesia, one of the key challenges was the decline in consumer purchasing power, driven by persistently high inflation, exchange rate volatility, and an increase in benchmark interest rates. Inflation stood at around 1.57% year-on-year in December 2024, with price pressures in the food and energy sectors continuing to burden households and businesses. In addition, the rupiah depreciated by approximately 8% against the US dollar throughout the year, influenced by global market uncertainties and monetary policies in developed countries. These conditions also impacted operating costs across various industries, including telecommunications.

Amid these macroeconomic challenges, the telecommunications industry continued to serve a vital role in supporting the social and economic activities of society. As a provider of digital infrastructure, the Company encountered a key challenge in the form of intensifying competition among infrastructure tenants. Telecommunication operators remained focused on expanding service coverage, enhancing network quality, and strengthening their market position. This situation influenced the dynamics of the tower leasing business and drove the Company to consistently offer innovative and efficient solutions to maintain client loyalty and expand market share.

Nevertheless, behind these challenges lies a significant opportunity arising from the growing reliance on digital services. The advancement of technology, digital transformation across various sectors, and the increasing demand for fast and stable connectivity have continued to drive the need for reliable digital infrastructure. Society is becoming increasingly dependent on digital services such as e-commerce, digital financial services, and internet- based entertainment, all of which require extensive and high-quality network coverage. In response to this opportunity, the Company remains committed to expanding its digital infrastructure to meet the rising market demand.

2024 STRATEGY

In navigating industry dynamics and macroeconomic challenges in 2024, the Company formulated and implemented a comprehensive strategy focused on strengthening its core business and exploring new opportunities to support sustainable growth. One of the Company’s key priorities was to meet the growing demand for digital infrastructure, both in the wireless and fiber- optic segments. The exponential growth of digital services and the increasing need for high-quality connectivity have driven the Company to expand its network and enhance infrastructure capacity. In addition, the Company remained committed to maintaining internal operational efficiency through the continuous optimization of work processes and the adoption of advanced technologies to boost productivity and reduce operational costs.

In executing this strategy, the Company leveraged synergies within the SMN Group, across both tower and non-tower business lines, to strengthen its service ecosystem and deliver added value to stakeholders. This collaboration enabled the Company to offer more comprehensive and integrated solutions to customers, expand service coverage, and enhance economies of scale. In addition, as part of its sustainable financial strategy, the Company focused on aligning its cost of financing effectively through optimal capital structure management and prudent financing policies amid changing economic conditions.

The Company also remained attentive to the evolving economic conditions in 2024 and proactively adjusted its business strategies in response to these changes. By strengthening business fundamentals and enhancing operational flexibility, the Company is confident in its ability to seize growth opportunities amid macroeconomic challenges, which is expected to contribute positively to both financial and operational performance.

From a product offering perspective, the Company worked in synergy with customers to provide solutions tailored to their specific needs. This approach not only strengthened customer relationships but also created opportunities to expand the Company’s service portfolio. One of the key initiatives in 2024 was the expansion into power-as-a- service (PaaS), offering customers efficient and reliable power management solutions. In addition, the Company also began exploring opportunities in the renewable energy sector, particularly through the installation of solar panels at various strategic locations.

ROLE OF THE BOARD OF DIRECTORS IN STRATEGY FORMULATION AND IMPLEMENTATION

The Board of Directors serves a vital role in formulating and implementing strategies to ensure the achievement of the Company’s short-term and long-term objectives. In navigating industry dynamics and external challenges in 2024, the Board actively participated in developing strategic policies that are adaptive and responsive to market developments. The strategy formulation process was carried out through in-depth assessments of various external factors, including industry trends, macroeconomic conditions, and customer needs, as well as comprehensive evaluations of the Company’s internal strengths. Through a data-driven approach and accurate analysis, the Board of Directors ensured that every strategic decision aligns with the Company’s vision and delivers added value to shareholders and other stakeholders.

In implementing the strategy, the Board of Directors placed strong emphasis on effective and measurable execution through several key initiatives. One of the critical steps taken was to clearly communicate the Company’s vision across all levels of the organization. Through consistent and transparent communication, every stakeholder within the Company gained a clear understanding of the strategic direction and their respective roles in supporting its achievement. In addition, the Board ensured that operational plans across all business units were aligned with the Company’s strategic objectives. This alignment was reinforced through the development of specific and measurable Key Performance Indicators (KPIs), enabling the Board to regularly monitor the progress of strategy execution and make necessary policy adjustments when needed.

To ensure effective implementation, the Board of Directors also focused on fostering cross-departmental collaboration, particularly within the SMN Group, encompassing both tower and non-tower businesses. This approach enabled the Company’s strategies to be translated into concrete action plans that could be efficiently executed across all entities within the Group. By promoting synergy among departments, the Board ensured that each business unit not only performed its role optimally but also contributed holistically to the achievement of the Company’s strategic objectives.

The Board of Directors regularly conducted evaluations and made strategic adjustments in response to changing market conditions and evolving customer needs. This process involved periodic performance reviews through Board meetings and cross-divisional coordination meetings to identify emerging opportunities and challenges. Through an adaptive and results-oriented approach, the Board ensured that the Company’s strategies remained relevant and effectively supported sustainable growth.

2024 PERFORMANCE REVIEW AND COMPARISON WITH TARGETS

As of December 2024, the Company demonstrated solid performance amid economic challenges and intense industry competition. The Company recorded revenue growth and expansion across multiple business lines, driven by the growing demand for digital infrastructure and the strategic acquisition of PT Inti Bangun Sejahtera Tbk (IBST). Cumulatively from January to December 2024, the Company recorded revenue of Rp12.74 trillion, an 8.5% year-on-year (yoy) increase compared to the previous year. This growth reflects the successful implementation of expansion strategies and strengthened synergy within the SMN Group. Meanwhile, net profit for the year stood at Rp3.34 trillion, increasing 1.1% yoy, despite cost pressures and lower revenue contribution from IBST.

Growth across all business segments was the main driver of the Company’s performance throughout 2024. Tower leasing revenue grew by 5.0% yoy to Rp8.53 trillion, supported by additional towers and new tenants. Fiber to the Tower (FTTT) services also recorded a significant growth of 17.5% yoy to Rp1.40 trillion, reflecting increased demand for reliable and high-speed connectivity. The Fiber to the Home (FTTH) segment posted the highest growth, soaring by 261.5% yoy to Rp1.40 trillion, highlighting the Company’s success in capturing the growing demand for consumer broadband services.

Throughout 2024, the Company successfully added 3,869 new towers and 3,839 additional tenants, largely driven by the consolidation of IBST. This expansion further strengthened the Company’s position as one of the largest telecommunications infrastructure providers in Indonesia. In addition, the average rental rate increased to Rp13.1 million per month, reflecting the successful optimization of the asset portfolio and the maximization of value from the recent acquisition. However, the average revenue per tower per month declined by 14.3% to Rp19.9 million, primarily due to lower revenue contributions from IBST.

On the fiber business, the Company recorded significant expansion through the deployment of an additional 18,607km of fiber optic cables, bringing the total fiber network to 119,817km. This expansion had a positive impact on fiber segment revenue, which increased to Rp679 billion, a 36.6% YoY growth and contributing 20.6% to the Company’s total revenue. This initiative aligns with the Company’s strategy to expand digital infrastructure in response to the growing market demand in the era of digital transformation.

BUSINESS SUPPORT OVERVIEW

In 2024, the Company continued to strengthen various business support functions to ensure seamless operations, enhance efficiency, and support sustainable growth. The Company recognizes that success in addressing industry challenges and capitalizing on growth opportunities is highly dependent on the effectiveness of its supporting infrastructure, including information technology, human resource management, financial optimization, and the implementation of sound corporate governance practices.

The Company prioritized investments in information technology (IT) to enhance operational efficiency and service quality. Throughout 2024, the Company implemented various technology-driven initiatives to strengthen its digital infrastructure. One of the key strategic steps was the deployment of an Internet of Things (IoT)-based infrastructure monitoring system, which enables real-time monitoring of tower conditions, fiber networks, and related equipment. This technology significantly improves the speed of fault detection and resolution, thereby enhancing service reliability and minimizing downtime.

In addition, the Company developed a big data analytics platform that enables comprehensive data collection and analysis. By leveraging data analytics, the Company can better understand customer usage patterns, identify market needs, and proactively respond to shifting demand. These technological innovations not only enhance operational efficiency but also support new product development, including the expansion into Power-as-a-Service (PaaS) and the exploration of renewable energy opportunities through solar panel installations.

The Company recognizes that human resources is a key asset in supporting the successful implementation of strategies and navigating the rapidly evolving industry landscape. As such, the Company consistently invests in employee competency development through various training and development programs. Throughout 2024, the Company conducted intensive training sessions focused on the latest technologies, including fiber networks, digital infrastructure solutions, and operational risk management.

In addition to technical programs, the Company also implemented a Leadership Development Program to nurture future leaders within the SMN Group. This program aims to strengthen managerial capabilities and foster a culture of innovation across all levels of the organization. By developing internal talent, the Company ensures leadership continuity that can effectively guide the organization toward long-term growth.

The Company is also committed to fostering an inclusive and productive work environment. Throughout the year, various employee well-being initiatives were implemented, including health programs and work-life balance initiatives aimed at enhancing employee productivity and retention.

GOOD CORPORATE GOVERNANCE IMPLEMENTATION

The Company remains firmly committed to upholding the principles of Good Corporate Governance (GCG) as a foundation for conducting its business operations. Consistent implementation of GCG is an integral part of the Company’s strategy to create long-term value for all stakeholders, enhance market trust, and ensure compliance with prevailing laws and regulations.

Throughout 2024, the Company continued to strengthen the implementation of GCG principles by aligning internal policies with applicable regulations, enhancing oversight functions, and improving the capacity of governance bodies to ensure sustainable and trustworthy business practices. An effective governance structure enables the Company to maintain a balance between achieving optimal performance and adhering to applicable ethical and legal standards.

To support good governance practices, the Company has established a robust governance structure consisting of the General Meeting of Shareholders (GMS) as the highest authority, the Board of Commissioners responsible for supervisory functions, and the Board of Directors in charge of managing the Company. The Company is further supported by committees under the Board of Commissioners, including the Audit Committee, the Nomination and Remuneration Committee, and the Risk Management Committee, all of which serve a vital role in providing recommendations and overseeing the execution of strategic policies. In 2024, the Company strengthened the roles of these committees by increasing the frequency of meetings and conducting regular evaluations to ensure effective risk management, regulatory compliance, and integrity in information disclosure to shareholders and other stakeholders.

In addition to ensuring compliance with applicable regulations, the Company also reinforced sustainable governance practices by integrating Environmental, Social, and Governance principles into its business operations. These efforts include the implementation of sustainability initiatives such as the use of environmentally friendly energy through solar panels, human resources development, and the enhancement of corporate social responsibility programs in communities surrounding the Company’s operational areas. The Company also implemented a Whistleblowing System that enables the anonymous and secure reporting of suspected violations, as part of its commitment to fostering a corporate culture rooted in transparency and integrity.

COMMITMENT TO SUSTAINABILITY

The Company is strongly committed to conducting sustainablebusinesspracticesbyintegrating Environmental, Social, and Governance (ESG) aspects into all areas of its operations. The Company recognizes that sustainability is not merely a matter of regulatory compliance, but also a strategic effort to create long-term value for shareholders and other stakeholders. Throughout 2024, the Company continued to expand its sustainability initiatives, ranging from energy efficiency and carbon footprint management to community empowerment. The Company understands that the growth of the telecommunications industry must be balanced with environmental and social responsibility to ensure harmony between business performance and environmental preservation.

As part of its efforts to reduce environmental impact, the Company has implemented various energy efficiency programs, including the use of solar panels as a renewable energy source at several tower infrastructure sites. This initiative aims to reduce dependence on fossil fuels and lower greenhouse gas emissions, in line with national targets for carbon emission reduction. In addition, the Company has expanded its fiber optic network, which not only enhances service capacity and reliability but is also more environmentally friendly compared to traditional technologies. Through this approach, the Company actively contributes to the achievement of the Sustainable Development Goals, particularly in the areas of clean energy and innovative infrastructure.

On the social aspect, the Company continued to implement various corporate social responsibility programs focused on community empowerment and improving quality of life. These initiatives include education programs, skills training, and support for community infrastructure in areas surrounding the Company’s operations. The Company also promotes diversity and inclusion in the workplace by ensuring a safe, equitable, and fair environment for all employees.

FUTURE OUTLOOK

Entering 2025, the Company remains optimistic on growth opportunities amid ongoing economic dynamics and the evolving telecommunications industry. The increasing demand for digital connectivity, driven by the acceleration of digital transforation across various sectors, presents significant opportunities for the Company to further expand its digital infrastructure.

The Company sees substantial potential in the expansion of its fiber optic network as a response to the growing demand for data services, particularly in urban areas and emerging regions. Supported by a business strategy that emphasizes operational efficiency, product innovation, and strengthened synergies within the SMN Group, the Company is confident in its ability to maintain its position as a leading digital infrastructure provider in Indonesia. To address future challenges, the Company will continue to develop innovative solutions tailored to customer needs.

APPRECIATION

On behalf of the Board of Directors, we extend our sincere gratitude to all shareholders, business partners, customers, and employees for their continued support and dedication throughout 2024. With strong commitment, the Company will continue to contribute to the advancement of digital infrastructure in Indonesia and create long-term value for all stakeholders