History Vision
Mission
Corporate
Structure
Organization
Structure
Letter from
the Commissioners
Letter from
the Directors
Award Glossary

Dear Shareholders,

 

2022 was a special milestone for Adaro Energy Indonesia, whereby we celebrated our 30th anniversary. Over the years, we have continuously developed and improved ourselves so to be prepared to overcome challenges and seize new business opportunities.  The Board of Commissioners would like to congratulate the Board of Directors (BoD) for their guidance in navigating an exciting year for the company and positioned the company strongly and thus enabled us to execute the company’s plans and strategies.

It gives me great pleasure to present to you some of the highlights of Adaro Energy Indonesia’s performance in 2022, which was an exceptional year for the industry, with the world coal prices rising strongly and hitting an all-time high in the third quarter of the year. We were able to exceed on our operational and financial targets, largely due to our integrated business model, which allowed us to maintain efficiency and operational excellence, while taking advantage of the opportunities presented in the industry.

 

Review of work plan and performance

On behalf of the entire Board, I also want to take this opportunity to commend the BoD on their timely strategic decisions during the year. We view that the BoD has been astute in future proofing the company by laying the foundation for our transformation strategies going forward and capturing the opportunities to further expand the company beyond coal. 

2022 was also the beginning of our transformation journey. We successfully listed our subsidiary, PT Adaro Minerals Indonesia Tbk (IDX: ADMR), to be traded on the exchange starting from January 3, 2022. I am happy to report that the listing was 179 times oversubscribed during pooling, showcasing the market’s confidence in ADMR and its business model. Subsequently on our 30th anniversary celebration, we announced the streamlining of our business structure into three pillars of growth: Adaro Energy, Adaro Minerals and Adaro Green. I am confident the new business structure will support our sustainable growth and enable the group to capture opportunities across the energy and minerals ecosystem.

Taking into account the strong coal price throughout 2022, which reached a historical high of $457.8/tonne in September 2022, the BoD’s consistent effort to improve cost efficiency and strengthen our capital structure, have enabled us to capitalize on the strong market and significantly strengthened our cash position. The high coal price environment supported our higher sales volume and subsequently we had record earnings above expectation. This strong financial position bodes well for future business prospects. We owe our cost leadership to our integrated business model. The integration also allows us to enjoy contribution from noncoal mining businesses, which protects our profitability and ensures business continuity.

  

Strategy execution

Together with the Audit Committee, the BoC monitor the effectiveness of our good corporate governance (GCG) principles. As in previous years, we continued to maintain intensive communication with the BoD in 2022 whereby the BoD regularly updates and informs the BoC on the performance of the company.

The Board is fully supportive of the BoD’s aspiration to transform and diversify our group from a coal mining and energy company, into also minerals and minerals processing. By developing the industrial park in North Kalimantan to be the first green powered industrial park, we believe this would create viable and sustainable business with long term growth, as well as creating more opportunities for us to also support the Government of Indonesia’s plans to create circular economy.

 

Our view on AEI’s financial and operational performance target for 2023

We have reviewed and evaluated the company’s guidance for 2023, and fully support the financial and operational targets set by the BoD. We will continue to closely monitor the execution of the company’s short-term and long-term business plans, including the implementation of our business transformation plans. Together with BoD, we will formulate strategy to ensure that our business is sustainable and brings value to our stakeholders.

The importance of ESG in the mining industry has been notably well recognized. With this in mind, we have been working together with world class consultants on how best to incorporate ESG best practice initiatives in our group.

 

Compliance and implementation of good corporate governance

We are of the opinion that the management has continued to apply GCG practices in all of our operations and pursue the highest level of compliance. This includes conducting periodical reviews and evaluations on the implementation of GCG principles to identify improvement options and necessary adjustments and carrying out operations within compliance with the prevailing laws and regulations.

The company also continues to instill the Adaro Values of integrity, meritocracy, openness, respect and excellence among the employees, with emphasis on “integrity” as the main character that every employee should possess to ensure that we have a strong foundation to sustain the growth of our company.

  

Composition of the Board of Commissioners

In the Extraordinary General Meeting of Shareholders (EGMS) held on February 9, 2022, the shareholders approved the resignation of Dr. Ir. Raden Pardede from his position as AEI’s Independent Commissioner and approved the appointment of Mr. Budi Bowoleksono as AEI’s Independent Commissioner. We would like to thank Dr. Ir. Raden Pardede for his contribution as Independent Commissioner of AEI.

We welcome Mr. Budi Bowoleksono to the Board of Commissioners of AEI and we believe that his experience and credentials will further strengthen the supervisory role of AEI’s Board of Commissioners.

 

Gratitude and appreciation

We thank the BoD for the professionalism and dedication to steer the company in the right strategic route, to always plan and lay the foundation to prepare the company not only in the short-term, but also in the long-term. The BoC also wishes to extend its sincere gratitude to all shareholders and stakeholders for their continued trust and support to AEI, and to all of our employees for their hard work and commitment.

Last modified on February 29, 2024, 9:17 am | 46917