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PT ADARO ENERGY INDONESIA TBK (IDX: ADRO) FY23 EARNINGS
NEWS RELEASE
Jakarta, February 29, 2024 – PT Adaro Energy Indonesia Tbk (“AEI”, IDX: “ADRO”) today
released its consolidated financial performance for the fiscal year ending December 31, 2023 to
IDX/FSA.
President Director and Chief Executive Officer, Mr. Garibaldi Thohir commented:
“We are pleased to have surpassed our FY23 targets, with strong production volumes and
operational efficiency driving the Adaro Group forward. Our investments into non-thermal
coal businesses are also making progress. This year we commenced construction on our
aluminum smelter at the industrial park in North Kalimantan, and broke ground on our
hydro power plant, also in North Kalimantan. Furthermore, our diversification into
metallurgical coal has yielded excellent results, with metallurgical coal accounting for 17%
of AEI’s FY23 revenue. Collectively these developments leave us optimistic on the Group’s
future outlook and our objective to diversify our revenue streams.”
Highlights
• AEI booked core earnings of $1,873 million in FY23 and operational EBITDA of $2,554million.
We generated solid operational EBITDA margin of 39%.
• We recorded a 7% increase in sales volume to 65.71 Mt, surpassing our sales volume target
of 62 – 64 Mt. However, as coal prices normalized, our revenue declined by 20% to $6,518
million due to a 26% lower average selling price (ASP).
• In line with our investment plans, capex increased 53% to $648.3 million. Capex spending
was mainly for investment in heavy equipment, barges and supporting infrastructure at our
supply chain, whilst commencing our investment in aluminum smelter and its ancillary
facilities.
• AEI’s balance sheet remains healthy with a net cash position of $1,936 million as at end of
2023, with cash position at $3,311 million.
• We have made tangible progress at the industrial park in North Kalimantan, where PT
Kalimantan Aluminium Industry (KAI), has completed the soil investigations, land levelling
process, and piling work for the baking furnace facilities in the aluminum smelter area.
PT ADARO ENERGY INDONESIA TBK FY24 GUIDANCE
▪ Sales volume: 65 Mt to 67 Mt, comprising of 61 Mt to 62 Mt of thermal coal, and 4.9 Mt to
5.4 Mt of metallurgical coal from ADMR.
▪ Strip ratio: 4.3x, flat y-o-y from FY23.
▪ Capital expenditure: $600 million to $700 million, including our equity investments in
projects related to the industrial park in North Kalimantan.
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Financial Performance
($ Millions, except otherwise stated) FY23 FY22 % Change
Revenue 6,518 8,102 -20%
Cost of revenue (3,980) (3,449) 15%
Gross profit 2,537 4,653 -45%
Operating income 2,155 4,308 -50%
Core earnings(1) 1,873 3,013 -38%
Operational EBITDA(2) 2,554 5,030 -49%
Total assets 10,473 10,782 -3%
Total liabilities 3,064 4,255 -28%
Total equity 7,409 6,527 14%
Interest bearing debt 1,423 1,573 -10%
Cash and cash equivalents 3,311 4,067 -19%
Net debt (cash)(3) (1,936) (2,599) -26%
Capital expenditure(4) 648 424 53%
Free cash flow(5) 1,694 2,769 -39%
Basic earnings per share (EPS) in $ 0.053 0.080 -34%
Financial Ratios
FY23 FY22 % Change
Gross profit margin (%) 39% 57% -19%
Operating margin (%) 33% 53% -20%
Operational EBITDA margin (%) 39% 62% -23%
Net debt (Cash) to equity (x) (0.26) (0.40) -35%
Net debt (Cash) to last 12 months operational EBITDA (x) (0.76) (0.52) 47%
Cash from operations to capex (x) 1.99 9.66 -79%
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Profit for the period, excluding non-operational items net of tax (amortization of mining properties, prior year tax assessment,
allowance for uncollectible receivables, reversal of allowance for Government charges and provision for decommissioning costs)
2
EBITDA excluding prior year tax assessment, allowance for uncollectible receivables, and provision decommissioning costs.
3
After deduction of cash and cash equivalent and current portion of other investments.
4
Capex spending defined as: purchase of fixed assets – proceed from disposal of fixed assets + payment for addition of mining
properties + addition of lease liabilities.
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Operational EBITDA – taxes – changes in trade receivables, inventories, and trade payables – capital expenditure excluding lease
liabilities.
Operating Segment
Segment Revenue Net Profit
($ Millions) FY23 FY22 % Change FY23 FY22 % Change
Coal mining & trading 6,318 7,936 -20% 1,425 2,332 -39%
Mining services 1,078 927 16% 118 91 30%
Others 657 543 21% 314 422 -26%
Elimination (1,535) (1,304) 18% (2) (14) -86%
Total 6,518 8,102 -20% 1,855 2,831 -34%
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FINANCIAL PERFORMANCE ANALYSIS FOR THE FULL YEAR 2023
Revenue, Average Selling Price and Production
We booked solid revenue of $6,518 million in FY23, a 20% decrease compared to FY22, even
though AEI achieved record production and sales which were 5% and 7% higher at 65.88 Mt and
65.71 Mt respectively, surpassing sales volume target of 62-64 Mt. This increment in operational
results was offset by a 26% decline in the average selling price (ASP) as coal prices continued to
normalize.
Cost of Revenue
Cost of revenues increased by 15% y-o-y to $3,980 million, mainly due to increased royalty
expenses for PT Adaro Indonesia (AI) compared to a year ago period. Mining costs and
processing costs also increased, driven by higher volume. We recorded a 22% increase in
overburden removal to 286.35 Mbcm, and a strip ratio of 4.35x, 16% higher than in FY22 and our
guidance, but still within our life-of-mine strip ratio.
While our total fuel consumption increased by 14%, our fuel cost for FY23 remained unchanged
from FY22 as oil prices declined. Coal cash cost per tonne (excluding royalty) in FY23 increased
by 6% from FY22.
Operating Expenses
Operating expenses in FY23 declined by 8% y-o-y to $344 million due to 17% decline in sales
commission to $104 million and we recorded a reversal of accrued allowance for Government
charges account amounting to $53.8 million, net of accrual for the non-tax state revenue for
central government (4%) and local government (6%). On the other hand, employee costs
increased 29% to $104 million in line with the growth of the Adaro Group.
Royalties to the Government and Income Tax Expense
Royalties to the Government increased 19% to $1,466 million from $1,230 million, while income
tax expense decreased 73% to $439 million from $1,645 million. After AI was granted the IUPK-
KOP in September of 2022, starting from January 1, 2023, it began to implement the provision on
taxation and non-tax revenue (PNBP) in accordance with the prevailing regulations.
The IUPK-KOP has increased AI’s royalty rate to the range of 14% to 28%, from the previous
13.5%. However, the corporate income tax rate decreased from 45% to 22%. The IUPK-KOP has
also brought about other changes to AI’s business, such as non-tax state revenue (PNBP) for
central government and local government’s portion in accordance with the provisions of laws and
regulations. AI accounted for 74% of the Adaro Group’s production in FY23.
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Operational EBITDA and Core Earnings
ADRO’s operational EBITDA declined by 49% y-o-y to $2,554 million and core earnings declined
by 38% to $1,873 million for FY23, on the back of lower ASP and higher costs. Our operational
EBITDA margin in FY23 remained healthy at 39%.
Net profit for the period of $1,855 million already accounted for the non-tax state revenue (PNBP)
for central government (4% portion) and local government (6% portion).
Total Assets
Total assets at the end of FY23 declined by 3% to $10,472 million compared with $10,782 million
at the end of FY22. Our cash balance at the end of FY23 also decreased by 19% to $3,311 million.
Cash and cash equivalents represented 32% of our total assets.
Current assets at the end of FY23 declined by 19% to $4,302 million compared to $5,319 million
at end of FY22. Non-current assets at the end of FY23 were 13% higher from the year ago period
at $6,171 million due to increases in fixed asset.
Fixed Assets
Fixed assets as at the end of FY23 of $1,754 million were 21% higher than at the end of FY22 as
we increased capex spending during the period mainly for purchases of heavy equipment, barges,
and investment in aluminum smelter and its ancillary facilities. Fixed assets accounted for 17% of
total assets.
Mining Properties
At the end of FY23, our mining properties were 4% lower y-o-y at $995 million, due to regular
amortization. Mining properties accounted for 9% of total assets.
Total Liabilities
Total liabilities at the end of FY23 were $3,064 million, 28% lower compared to the same period
last year. Current liabilities decreased by 13% y-o-y to $2,135 million mainly due to the 92%
decline in corporate income tax payable, which was offset by the reclassification of AI’s senior
notes as current liabilities because of its near-term maturity in October 2024, and the 57%
increase in accrued expenses as a result of the changes in government regulations - mainly due
to the non-tax state revenue (PNBP) for central government (4% portion) and local government
(6% portion). Non-current liabilities decreased by 49% y-o-y to $929 million due to voluntary
repayment of AI’s bank loan amounting to $196 million.
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Debt Management and Liquidity
AEI’s cash balance at the end of FY23 declined by 19% to $3,311 million from $4,067 million y-
o-y. AEI also had access to $48 million in other investments and a total of $1,896 million in
undrawn committed loan facilities from various outstanding loans at FY23, increasing total liquidity
to $5,255 million at the end of FY23. Interest bearing debts declined by 10% y-oy to $1,423 million.
Equity
At the end of FY23, shareholder’s equity stood at $7,408 million, representing an increase of 14%
y-o-y driven by higher retained earnings.
Cash Flows from Operating Activities
In FY23, ADRO’s cash flows from operating activities declined by 70% to $1,153 million from
$3,864 million y-o-y driven by lower receipts from customers and the increase in payments of
royalties and income tax as well as payments to suppliers. We paid $1,529 million in corporate
and final income tax, an increase of 80% y-o-y. Moreover, effective from 2023, AI’s corporate
income tax rate has decreased to 22% from 45%.
Cash Flows from Investing Activities
The company reported $582 million in net cash outflows used in investing activities, 24% lower
than in FY22, mainly driven by the 47% increase in purchase of fixed assets to $560 million.
Capital Expenditure
Capital expenditure in FY23 increased by 53% to $648 million from $424 million in the year ago
period, surpassing our 2023 guidance. The capital expenditure spending in the period was mainly
for purchases and replacement of heavy equipment and barges, initial investment in the aluminum
smelter and its ancillary facilities, and investment in infrastructure.
Cash Flows from Financing Activities
Net cash outflow from financing activities in FY23 increased by 67% to $1,334 million, mainly due
to higher dividend payment and repayment of bank loans. The company distributed $1,000 million
as cash dividend to shareholders for FY22.
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PT ADARO ENERGY INDONESIA TBK (IDX: ADRO) FY23 ACTIVITIES
REPORT
FY23 OPERATIONAL HIGHLIGHTS
• Production volume of PT Adaro Energy Indonesia Tbk and its subsidiaries (the Adaro
Group) reached 65.88 Mt in FY23, corresponding to a 5% increase from FY22.
• Sales volume for the year of 65.71 Mt was 7% higher than FY22 and surpassed the
company’s target of 62 – 64 Mt.
• Sales of metallurgical coal through subsidiary PT Adaro Minerals Indonesia Tbk (ADMR)
increased by 39% to 4.46 Mt in FY23, exceeding our FY23 sales volume target of 3.8 –
4.3 Mt.
• Overburden removal reached 286.35 Mbcm in FY23, 22% higher than in FY22. Our strip
ratio reached 4.35x, 16% higher than in FY22 and higher than our target of 4.2x for FY23.
• Tangible progress has been made at the industrial park in North Kalimantan, where our
aluminum smelter, PT Kalimantan Aluminium Industry, has completed soil investigations,
land levelling, and piling work for the baking furnace facilities in the aluminum smelter
area.
SUMMARY OF FY23 OPERATIONS
4Q23 vs. 4Q23 vs. FY23 vs.
Units 4Q23 3Q23 4Q22 FY23 FY22
3Q23 4Q22 FY22
Production Volume Mt 15.15 17.31 -12% 17.52 -13% 65.88 62.88 5%
AI Mt 11.13 12.49 -11% 13.28 -16% 48.60 49.12 -1%
Balangan Coal Companies Mt 1.73 2.25 -23% 2.26 -23% 8.02 7.11 13%
ADMR Mt 1.13 1.44 -21% 0.81 40% 5.11 3.37 52%
MIP Mt 1.17 1.14 3% 1.18 -1% 4.15 3.28 27%
Sales Volume Mt 16.59 16.50 1% 17.17 -3% 65.71 61.34 7%
Thermal - Medium CV Mt 10.72 11.35 -6% 11.92 -10% 44.54 44.91 -1%
Thermal - < 4500 GAR Mt 4.41 3.95 12% 4.23 4% 16.71 13.24 26%
Met Coal Mt 1.45 1.19 21% 1.02 43% 4.46 3.20 39%
Overburden Removal Mbcm 68.92 87.60 -21% 62.15 11% 286.35 235.68 22%
AI Mbcm 50.80 66.58 -24% 48.90 4% 219.39 191.83 14%
Balangan Coal Companies Mbcm 9.97 10.75 -7% 7.16 39% 35.25 26.69 32%
ADMR Mbcm 4.89 6.27 -22% 2.26 116% 18.70 8.32 125%
MIP Mbcm 3.27 4.00 -18% 3.83 -15% 13.02 8.84 47%
Strip Ratio x 4.55 5.06 -10% 3.55 28% 4.35 3.75 16%
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Historical Quarterly Production Volume (Mt)
20.0
17.4 17.5 17.7 17.3
15.7 15.9 15.7
Production Volume (Mt)
14.9 15.1 14.7 15.2
15.0 13.8 13.9 14.4 13.8 13.4 13.6 13.2 13.1
13.1 12.9 12.9
12.1
11.0
10.0
5.0
-
Historical Quarterly Sales Volume (Mt)
20.0
18.0 16.7 17.2 16.9 16.5 16.6
15.5 15.1 15.4 15.9 15.3 15.7
16.0 14.5 14.4
13.4 13.6 13.4
12.9 12.6 13.2 13.1 12.7 12.2
Sales Volume (Mt)
14.0 12.7
12.0 10.9
10.0
8.0
6.0
4.0
2.0
-
Historical Quarterly Overburden Removal Volume and Strip Ratio
150.0 5.5 6.0
5.3 5.3
4.9 5.1
OB Removal Volume (Mbcm)
4.6 4.5 4.5 4.5 4.6 4.5 5.0
120.0 4.4
4.1 4.2 4.1 4.0 4.1 4.1
3.7 3.5 3.6 3.5 4.0
3.5 3.4 87.6
90.0 81.3 82.5
69.0 69.2 71.5 73.4 68.9
61.566.0 62.1 57.7
62.7
57.8 62.1 3.0
54.0 53.9 56.5
60.0 49.853.2 49.152.5 45.948.2
2.0
30.0
1.0
- -
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THE ADARO GROUP’S SALES BY DESTINATION IN FY23
India
12%
Indonesia
25%
Northeast Asia
20%
Southeast Asia
China 22%
21%
ADARO ENERGY PILLAR
1. MINING
PT Adaro Indonesia (AI)
• AI’s production volume in 2023 reached 48.60 Mt, 1% lower than in 2022. Sales
volume in the period reached 57.24 Mt, 3% higher than in 2022.
• Total overburden removal from AI reached 219.39 Mbcm, up 14% from 2022, resulting
in a strip ratio of 4.51x in 2023.
4Q23 vs. 4Q23 vs. FY23 vs.
Units 4Q23 3Q23 4Q22 FY23 FY22
3Q23 4Q22 FY22
Overburden Removal Mbcm 50.80 66.58 -24% 48.90 4% 219.39 191.83 14%
Production Volume Mt 11.13 12.49 -11% 13.28 -16% 48.60 49.12 -1%
Sales Volume Mt 14.17 14.21 0% 15.13 -6% 57.24 55.50 3%
Balangan Coal Companies (BCC)
• Balangan Coal Companies produced 8.02 Mt of coal in 2023, 13% higher than in 2022.
Total overburden removal of 35.25 Mbcm was 32% higher from 2022 and resulted in
a strip ratio of 4.40x in 2023.
4Q23 vs. 4Q23 vs. FY23 vs.
Units 4Q23 3Q23 4Q22 FY23 FY22
3Q23 4Q22 FY22
Overburden Removal Mbcm 9.97 10.75 -7% 7.16 39% 35.25 26.69 32%
Production Volume Mt 1.73 2.25 -23% 2.26 -23% 8.02 7.11 13%
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PT Mustika Indah Permai (MIP)
• MIP recorded a 27% increase in production volume compared to 2022, reaching 4.15
Mt. Sales volume in 2023 reached 4.01 Mt, an increase of 52% from 2022.
• Overburden removal volume in 2023 of 13.02 Mbcm was 47% higher than in 2022.
MIP’s overburden removal increased on the back of increased physical availability of
heavy equipment and higher heavy equipment utilization supported by good weather
conditions throughout the year. Strip ratio in 2023 increased 16% to 3.13x.
• The Philippines was MIP’s largest export destination during the year, followed by India
and China. MIP sold 26% of its volume to the domestic market in 2023.
4Q23 vs. 4Q23 vs. FY23 vs.
Units 4Q23 3Q23 4Q22 FY23 FY22
3Q23 4Q22 FY22
Overburden Removal Mbcm 3.27 4.09 -20% 3.83 -15% 13.02 8.84 47%
Production Volume Mt 1.18 1.13 5% 1.18 0% 4.15 3.28 27%
Sales Volume Mt 0.97 1.10 -12% 1.02 -5% 4.01 2.64 52%
Kestrel Coal Mine (Kestrel)
• In FY23, Kestrel recorded saleable coal production volume of 5.57 Mt, 2% lower than
in FY22. Kestrel’s sales volume in FY23 were 5.56 Mt, 3% lower from FY22. During
the year, Kestrel’s coal stocks being processed at the plant had high clay dilution
content resulting in lower yields and reduced throughput capacity. .
• Kestrel’s sales destinations consist of customers in major Asian markets. Japan was
Kestrel’s largest sales destination in 2023 followed by India and Korea. Adaro Capital
Limited (48%), a subsidiary of AEI, and EMR Capital Ltd (52%) own 80% of interest in
Kestrel.
4Q23 vs. 4Q23 vs. FY23 vs.
Units 4Q23 3Q23 4Q22 FY23 FY22
3Q23 4Q22 FY22
Saleable Production Mt 1.41 1.63 -13% 1.23 15% 5.57 5.67 -2%
Sales Volume Mt 1.55 1.78 -12% 1.36 14% 5.56 5.76 -3%
2. SERVICES
PT Saptaindra Sejati (SIS)
• In 2023, SIS’s overburden removal volume increased 18% y-o-y to 223.08 Mbcm.
SIS’s production volume in 2023 reached 60.91 Mt, a 2% increase from in 2022.
4Q23 vs. 4Q23 vs. FY23 vs.
Units 4Q23 3Q23 4Q22 FY23 FY22
3Q23 4Q22 FY22
Overburden Removal Mbcm 56.24 66.80 -16% 51.88 8% 223.08 189.60 18%
Production Mt 14.04 15.75 -11% 16.62 -15% 60.91 59.51 2%
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3. LOGISTICS
PT Maritim Barito Perkasa (MBP)
• MBP’s barging volume in 2023 increased by 10% to 63.53 Mt compared to 2022. The
Adaro Group’s volume constituted almost the entire portion of MBP’s total barging
volume in 2023.
• MBP has started to carry out barge-to-barge transfer at North Kelanis for Adaro
Minerals’ metallurgical coal as it continued to support the Adaro Group’s operations to
achieve operational excellence and cost competitiveness.
4Q23 vs. 4Q23 vs. FY23 vs.
Units 4Q23 3Q23 4Q22 FY23 FY22
3Q23 4Q22 FY22
Coal barging Mt 15.83 16.20 -2% 15.94 -1% 63.53 57.58 10%
4. POWER
• Our power plants continued to perform well in 4Q23. The availability factor for PT
Makmur Sejahtera Wisesa (MSW) reached 99.7%, averaging 90% for 2023. For PT
Tanjung Power Indonesia (TPI), its availability factor was 98.58% in 4Q23, averaging
92.22% for 2023. Meanwhile, the availability factor for PT Bhimasena Power Indonesia
(BPI) was 96.2% during the quarter, bringing its availability factor to 85.2% for 2023.
• PT Adaro Power and PT Adaro Clean Energy Indonesia continue to develop the
group’s green initiatives. MSW’s Solar PV in Kelanis produced 190.73 MWh in 4Q23,
reaching 793.76 MWh for 2023. Other carbon emission reduction initiatives include
the continuation of biomass co-firing at MSW in 4Q23, which equals a 2,386.5 Ton
CO2e reduction of CO2 equivalent, reaching 4,517,2 Ton CO2e in 2023.
• In addition, throughout 2023, carbon emissions at both TPI and BPI were below the
cap set by the government.
• PT Kaltara Power Indonesia (KPI) is building a power plant to support PT Kalimantan
Aluminium Industry’s aluminium smelter. In 4Q23, KPI completed the earthwork and
started the piling and foundation work for the power block area. In parallel, the
construction for the balance of plant area has also started with the piling work,
equipment foundation, water pond and network relay room.
• KPI will continue the work of foundation and steel structure installation during 1Q24,
for both the power block area and the balance of plant. All power plant units are
expected to be completed by 2025. .
5. WATER
In 2023, Adaro Water continued to maintain solid operational and financial performance, and
made progress in the development of its projects.
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1. As part of the Non-Revenue Water (NRW) project to improve water efficiency in the
northern part of Bandung, Adaro Water has established seven zones with 55 inlet
District Meter Areas (DMAs) to identify and repair any leaks or inefficiencies.
2. The construction progress of the Water Treatment Plant (WTP) in Bekasi, West Java
by PT Grenex Tirta Mandiri, with a capacity of 200 lps, reached 85.12% as at the end
of 4Q23, with the target to have the joint commissioning with the Regional Water
Supply Company (PDAM) in 1Q24.
3. PT Adaro Tirta Brayan is currently constructing a Water Treatment Plant (WTP) in
Medan, North Sumatra, with a capacity of 500 lps. The CoD (Commercial Operation
Date) target is 4Q24.
Adaro Water also has several projects to support the Adaro Group’s activities, such as PT
Adaro Tirta Sarana which currently provides clean water supply to PT Kalimantan Industrial
Park Indonesia (KIPI). PT Adaro Tirta Sarana started its Phase I operations in June 2023,
while Phase II, a 2x100 lps WTP is still on progress.
ADARO MINERALS PILLAR
PT Adaro Minerals Indonesia Tbk (IDX: ADMR)
• ADMR’s metallurgical coal production volume in 2023 reached 5.11 (Mt), a 52% increase
over 2022, with sales reaching 4.46 Mt, 39% higher than in 2022. Our sales performance
was slightly above our 2023 target of 3.8 Mt to 4.3 Mt. In 2H23, we restarted operations
from PT Lahai Coal (LC) and sold 0.20 Mt from LC in the period.
• Overburden removal volume reached 18.70 Mbcm in 2023, 125% higher than in 2022,
leading to a strip ratio of 3.66x, a 48% increase from 2022. The good performance from
our contractor and supportive weather conditions drove the higher overburden removal
volume in the period.
• In 2023, ADMR sold the majority of its metallurgical coal to the export market with Japan
as its largest sales destination.
4Q23 vs. 4Q23 vs. FY23 vs.
Units 4Q23 3Q23 4Q22 FY23 FY22
3Q23 4Q22 FY22
Overburden Removal Mbcm 4.89 6.27 -22% 2.26 116% 18.70 8.32 125%
Maruwai Mbcm 3.02 4.65 -35% 2.26 33% 15.22 8.32 83%
Lahai Mbcm 1.87 1.62 16% - 100% 3.49 - 100%
Production Volume Mt 1.13 1.44 -21% 0.81 40% 5.11 3.37 52%
Maruwai Mt 0.93 1.36 -32% 0.81 15% 4.83 3.37 43%
Lahai Mt 0.20 0.08 157% - 100% 0.28 - 100%
Sales Volume Mt 1.45 1.19 21% 1.02 43% 4.46 3.20 39%
Maruwai Mt 1.25 1.19 5% 1.02 24% 4.26 3.20 33%
Lahai Mt 0.20 - 100% - 100% 0.20 - 100%
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PT Kalimantan Aluminium Industry (KAI)
• In 4Q23, KAI completed soil investigation, land levelling, and piling work for the baking
furnace facilities in the aluminum smelter area.
• In Q1 2024, KAI will focus on piling and foundation activities in the smelter area. KAI will
also continue the piling work for inbound materials receiving facilities at the jetty area, as
well as other supporting infrastructures.”
ADARO GREEN PILLAR
• The Adaro Green pillar was set up to accommodate our aspiration to build a bigger and
greener Adaro by seizing opportunities in Indonesia’s green economy. Through PT Adaro
Clean Energy Indonesia (ACEI) and its subsidiaries, the Adaro Group is undergoing feasibility
studies to develop multiple renewable sources of energy.
• PT Adaro Sarana Energi Terbarukan (ASET), a subsidiary of ACEI, plans to reduce the diesel
consumption used at the Adaro Group’s operation and will continue developing renewable
projects within the Adaro Group to demonstrate the Group’s commitment to green
transformation.
HEALTH, SAFETY AND ENVIRONMENT (HSE)
In FY23, we experienced ten lost-time injuries (LTI) throughout the Adaro Group’s operations, an
improvement from 13 in FY22. We recorded a lost-time injury frequency rate (LTIFR) of 0.08, 33%
lower than FY22, and severity rate (SR) of 48.74 in FY23, lower than FY22 SR of 57.22. Total
man-hours worked in FY23 was 133,521,406 representing a 17% increase from 114,007,179 in
FY22. Regrettably, we experienced one fatality and have conducted thorough analysis of the
accident and further emphasized the implementation of Adaro Zero Accident Mindset (AZAM)
throughout the Adaro Group.
CORPORATE ACTIVITIES AND AWARD
October 2023
• PT Adaro Indonesia (AI) received Aditama (Gold) and Utama (silver) ratings for the five
aspects of the Good Mining Practices Awards 2023 held by the Directorate General of
Minerals and Coal (Minerba). We are proud that AI also achieved the best rating (the
trophy winner) among the participants of the award for the aspect of Management on
Mining Services’ Standardization and Business and won the Best of the Best title as a
mining company which has earned the highest total score of the five GMP aspects. For
the same award, PT Saptaindra Sejati (SIS) as a mining services company may only
participate in the aspect of Management on Mining Services’ Standardization and
Business, and received Aditama rating for its work at AI’s site, Utama rating for its work at
Maruwai Coal’s site, and Utama rating for its work at a third-party’s site.
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November 2023
• PT Adaro Energy Indonesia Tbk received two awards at the 2023 Best Philanthropy
Awards held by Warta Ekonomi. AEI won under two categories: (1) Community
Development Activities through Health and Human Resource Quality Improvement, and
(2) Commitment in Improving Education Quality of Youth and General Public.
• PT Adaro Indonesia (AI), PT Saptaindra Sejati (SIS) and PT Maruwai Coal (MC) won
various awards at the 27th National Quality and Productivity Convention held in
Yogyakarta. This event gave companies of various sectors the opportunity to display
innovations in the field of Quality and Productivity Improvement, and was attended by 562
teams from 182 companies in Indonesia. AI won two Diamond Awards, five Platinum
Awards, three Gold Awards and the Best Presentation. SIS won two Platinum Awards and
one Gold Award, while MC won two Gold Awards.
December 2023
• PT Adaro Indonesia (AI) has completed another river watershed rehabilitation program,
this time for an area covering 321 hectares in Mount Pamaton, Kiram Village South
Kalimantan. The program was carried out in collaboration with the provincial government,
members of the public, and students of the Lambung Mangkurat University.
• PT Adaro Energy Indonesia Tbk (AEI) was listed on Forbes’s World Best Employers 2023.
AEI was one of the only three Indonesian companies listed on Forbes’ Global List, ranking
348 out of 700.
• Three AEI’s subsidiaries, i.e. PT Adaro Logistics (AL), PT Maruwai Coal (MC) and PT
Adaro Indonesia (AI), won five awards of the Indonesia Sustainable Development Goals
Award (ISDA). AL won the Gold rating for the Vocational Education program; MC won two
Gold ratings – for the Pintar Tuntang Harati program and the Patchouli Plant Cultivation
program; and one silver rating for the Baloi Coffee Plantation program. In addition, AI also
won the first place in the Local Hero category in the Indonesia CSR Award (ICA) for its
flagship program of the Menanti Laburan Tourism Park in Padang Panjang Village,
Tabalong Regency.
Both ISDA and ICA award events were held by Corporate Forum for CSR Development
and supported by the office of the Vice President of the Republic of Indonesia, The Ministry
of National Development Planning/ National Development Planning Agency, The Ministry
of Environment and Forestry, and the National Standardization Agency.
• PT Adaro Indonesia won its 6th Gold PROPER Award (five consecutive years) from the
Ministry of Environment and Forestry, in the Corporate Environmental Management
Performance Rating Assessment Award. The Gold Award is the highest rating granted to
companies proven to have gone beyond compliance in environmental management, and
continuously conduct community development initiatives.
###
These materials have been prepared by PT Adaro Energy Indonesia Tbk (the “Company”, “AEI”, “ADRO”) and have
not been independently verified. No representation or warranty, expressed or implied, is made and no reliance should
be placed on the accuracy, fairness or completeness of the information presented or contained in these materials. The
Company or any of its affiliates, advisers or representatives accepts no liability whatsoever for any loss howsoever
13
Page 14
arising from any information presented or contained in these materials. The information presented or contained in
these materials is subject to change without notice and its accuracy is not guaranteed.
These materials contain statements that constitute forward-looking statements. These statements include descriptions
regarding the intent, belief or current expectations of the Company or its officers with respect to the consolidated results
of operations and financial condition of the Company. These statements can be recognized by the use of words such
as “expects,” “plan,” “will,” “estimates,” “projects,” “intends,” or words of similar meaning. Such forward-looking
statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ
from those in the forward-looking statements as a result of various factors and assumptions. The Company has no
obligation and does not undertake to revise forward-looking statements to reflect future events or circumstances.
These materials are for information purposes only and do not constitute or form part of an offer, solicitation or invitation
of any offer to buy or subscribe for any securities of the Company, in any jurisdiction, nor should it or any part of it form
the basis of, or be relied upon in any connection with, any contract, commitment or investment decision whatsoever.
Any decision to purchase or subscribe for any securities of the Company should be made after seeking appropriate
professional advice.
For further information please contact:
Investors
Thomas Coombes | Thomas.Coombes@adaro.com
Media
Febriati Nadira | Febriati.Nadira@adaro.com
14
Names mentioned 28 people and organisations named in the text · linked when the evidence is strong
unresolved
org
PT Mustika Indah Permai
p.9
unresolved
org
Korea. Adaro Capital Limited
p.9
unresolved
org
EMR Capital Ltd
p.9
unresolved
org
PT Saptaindra Sejati
p.9 ×3
unresolved
org
PT Maritim Barito Perkasa
p.10
unresolved
org
PT Makmur Sejahtera Wisesa
p.10
unresolved
org
PT Tanjung Power Indonesia
p.10
unresolved
org
PT Bhimasena Power Indonesia
p.10
unresolved
org
PT Adaro Power
p.10
unresolved
org
PT Grenex Tirta Mandiri
p.11
unresolved
org
PT Adaro Tirta Brayan
p.11
unresolved
org
PT Adaro Tirta Sarana
p.11 ×2
unresolved
org
PT Kalimantan Industrial Park Indonesia
p.11
unresolved
org
PT Lahai Coal
p.11
unresolved
org
PT Adaro Sarana Energi Terbarukan
p.12
unresolved
org
Directorate General of Minerals and Coal
p.12
unresolved
org
PT Maruwai Coal
p.13 ×2
unresolved
org
PT Adaro Logistics
p.13
unresolved
org
Ministry of Environment and Forestry
p.13
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Nothing structured was extracted from this document — the attempts below say why.
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