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Asset transaction Needs review AADI

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INFORMATION DISCLOSURE TO THE SHAREHOLDERS ON AN AFFILIATED-PARTY
                         TRANSACTION OF
         PT ADARO ANDALAN INDONESIA Tbk (“THE COMPANY”)
This Information Disclosure to The Shareholders on The Affiliated-party Transaction (hereinafter
referred to as “Information Disclosure”) was prepared to inform the Company’s shareholders on
the signing of a Loan Agreement between the Company and PT Kaltara Power Indonesia (“KPI”).
The Company and KPI have an affiliate relationship, which is a relationship between a company and
a party—whether directly or indirectly—that controls or is controlled by that company, as stipulated
in article 1 paragraph 1 letter d of Indonesian Financial Services Authority’s Regulation number
42/POJK.04/2020 on Affiliated-Party Transactions and Conflict of Interest Transactions (“POJK
42/2020”).

This transaction fulfills the definition of affiliated-party transaction as set forth in POJK 42/2020.

THE COMPANY’S BOARD OF DIRECTORS AND BOARD OF COMMISSIONERS, EITHER
SEVERALLY OR JOINTLY, ARE FULLY RESPONSIBLE FOR THE ACCURACY OF THE
INFORMATION DISCLOSURE AND THE AMENDMENT AND/OR ADDITION TO THE
INFORMATION DISCLOSURE, IF ANY.

THE COMPANY’S BOARD OF DIRECTORS AND BOARD OF COMMISSIONERS HEREBY
DECLARE THAT THE INFORMATION AS DISCLOSED IN THIS INFORMATION DISCLOSURE IS
COMPLETE, AND AFTER A DUE AND CAREFUL EXAMINATION, EMPHASIZE THAT THE
INFORMATION STATED IN THIS INFORMATION DISCLOSURE IS TRUE, AND THAT THERE
ARE NO RELEVANT AND MATERIAL FACTS OMITTED OR ELIMINATED IN SUCH A WAY THAT
CAUSE THE INFORMATION PROVIDED HEREIN TO BE UNTRUE AND/OR MISLEADING.

THE COMPANY’S BOARD OF DIRECTORS AND BOARD OF COMMISSIONERS DECLARE
THAT THIS AFFILIATED-PARTY TRANSACTION DOES NOT CONTAIN ANY CONFLICT OF
INTEREST.




                                  PT Adaro Andalan Indonesia Tbk

                                       Business activities:
  Holding-company activities (for subsidiaries operating in coal mining, mining services, management
        consultancy, water resources management, power generation, and specialized freight
 transportation), other management consultancy activities, in addition to operating in the sectors of oil
                palm plantation, and rubber and other latex-producing crops plantation.


                                              Head Office:
                                        Cyber 2 Tower 26th Fl.
                                Jl. H.R. Rasuna Said Blok X-5, No.13
                                       Jakarta 12950 – Indonesia
                                  Email: corsec@adaroindonesia.com
                                    Website: www.adaroindonesia.com

                        This information is issued in Jakarta on July 2nd, 2026.



                                                   1
Page 2
                                          DEFINITION


Affiliation                    :   defined as set forth by article 1 paragraph (1) of Law number
                                   8 of 1995 on the Capital Market as lastly amended by Law
                                   number 4 of 2026 on the Amendment of Law number 4 of 2023
                                   on the Development and Strengthening of the Financial Sector
                                   juncto article 1 paragraph (1) of POJK 42/2020.

US$                            :   United States dollar.

Director(s)                    :   (a) member(s) of the Company’s Board of Directors holding
                                   such position on the issuance date of this Information
                                   Disclosure.

Commissioner(s)                :   (a) member(s) of the Company’s Board of Commissioners
                                   holding such position on the issuance date of this Information
                                   Disclosure.

Appraiser’s Report             :   defined as explained in the Introduction section of this
                                   Information Disclosure.

Independent Appraiser          :   the Office of Public Appraisal Services of Desmar, Susanto,
                                   Salman dan Rekan, an independent appraiser registered with
                                   the FSA, which has been appointed by the Company to
                                   appraise the fair value and/or fairness of the transaction as
                                   explained in this Information Disclosure.

Loan Agreement                 :   defined as explained in the Introduction section of this
                                   Information Disclosure.

Company                        :   PT Adaro Andalan Indonesia Tbk, a publicly-listed company
                                   duly established and organized under the law of the Republic
                                   of Indonesia and domiciled in Jakarta, Indonesia.

Controlled Company             :   as defined by POJK 42/2020.

Term SOFR                      :   Interest rate reference of Term Secured Overnight Financing
                                   Rate.

Affiliated-Party Transaction   :   as defined by POJK 42/2020.

POJK 42/2020                   :   Financial     Services    Authority’s Regulation number
                                   42/POJK.04/2020 on Affiliated-Party Transactions and
                                   Conflict of Interest Transactions.

POJK 17/2020                   :   Financial  Services  Authority’s   Regulation   number
                                   17/POJK.04/2020 on Material Transactions and Changes to
                                   Business Activities.




                                               2
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I.    INTRODUCTION

      The Company and KPI have made an Affiliated-Party Transaction by signing a Loan Agreement
      effectively valid as of June 30th, 2026, whereby the Company granted KPI a loan amounting to
      US$100,800,000 (one hundred million eight hundred thousand United States dollars) (“Loan
      Agreement”).

      Pursuant to the provision of article 4 paragraph (1) of POJK 42/2020, the execution of an Affiliated-
      Party Transaction must use an appraiser service to determine the fair value of the object of the
      Affiliated-PartyTransaction and/or the fairness of the transaction, and must be announced to the
      public. In order to fulfill such provision of POJK 42/2020, the Company’s Board of Directors issued
      this Information Disclosure to inform the public on such Affiliated-Party Transaction.

      The Appraiser’s Report used a reference is the report of the Office of Public Appraisal Services of
      Desmar, Susanto, Salman dan Rekan Number 00044/2.0142-00/BS/02/0177/1/VI/2026 of June
      26th, 2026 on the Fairness Opinion on Loan Agreement (“Appraiser’s Report”). The Appraiser’s
      Report gives a fair opinion on the Loan Agreement.

      This Affiliated-Party Transaction has been through the procedure as set forth in article 3 of POJK
      42/2020 and executed in accordance with the generally applicable business practices.

      This Affiliated-Party Transaction is neither a conflict-of-interest transaction as stipulated in POJK
      42/2020 nor a material transaction as stipulated in POJK 17/2020 because the total value of this
      transaction is less than 20% (twenty percent) of the Company’s total equity value. The Company’s
      total equity based on its Financial Statements of December 31, 2025 audited by Public Accounting
      Firm Rintis, Jumadi, Rianto & Rekan amounted to US$3,649,628 (in thousand of United States
      dollars).

II.   BRIEF DESCRIPTION ON THE TRANSACTION AND THE EFFECT OF THE TRANSACTION TO
      THE COMPANY’S FINANCIAL CONDITION

      A. DESCRIPTION OF THE TRANSACTION

         i. Rationale, Background, and Benefits of the Transaction

            The background and rationale of the execution of the Loan Agreement are to serve as one
            of the Company’s strategies to develop its business. In implementing this strategy, the
            Company always ensures to conduct risk profile review, apply good investment
            diversification, as well as monitoring and balancing its investment portfolio. The Company
            also strives to maximize its financial potentials as well as using its extensive network to
            generate sound returns for the shareholders.

            This Loan Agreement is aimed at supporting KPI’s business activities, including the capital
            expenditure for business development purposes and other requirements/uses. This
            transaction will provide larger business development supports for KPI. Therefore, the
            Company expects this transaction to bring positive values to both parties, support the
            Company’s business development objectives, and maximize rate of return in a more effective
            and efficient manner.

         ii. Brief Description on the Transaction

            The Company and KPI have signed the Loan Agreement effective as of June 30th, 2026, with
            the following details:

                Loan principal amount         :   Up to US$100,800,000 (one hundred million eight
                                                   hundred thousand United States dollars)
                                                    3
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       Interest rate                :   Term SOFR + certain percentage per annum
       Date of maturity             :   December 31st, 2033
       Purpose of loan              :   For KPI’s business activities, including the capital
                                         expenditure for project development and other
                                         requirements/uses.

   Pursuant to the provision of article 5 point (e) of POJK 42/2020, the Company is not
   required to implement the procedure as defined in article 3 of POJK 42/2020 or to fulfill the
   provision as set forth is article 4 paragraph (1) of POJK 42/2020 in the event that there is
   (a) subsequent transaction(s) under this Loan Agreement on a future date, whereby this
   Loan Agreement serves as the initial transaction underlying such subsequent transactions,
   and the terms and conditions of this Loan Agreement are not amended in any way
   detrimental to the Company.

iii. Parties to the Transaction

   1. The Company

       Brief history

       The Company was established based on Notarial Deed number 2 of December 1st, 2004
       made before Ir. Rusli, S.H., a Notary in Bekasi. The deed has been approved by the
       Minister of Law and Human Rights of the Republic of Indonesia by Decree number
       C-31123 HT01.01.TH.2004 of December 23rd, 2004. The deed was announced in the
       State Gazette of the Republic of Indonesia number 52 of July 1st, 2005 and the
       Supplement to State Gazette number 6922. The Company’s articles of association have
       been amended several times. By the amendment to the Company’s articles of association
       based on the Notarial Deed number 100 made before Humberg Lie, S.H., S.E., M.Kn., a
       Notary in North Jakarta, of July 31st, 2024, the Company’s name has been changed from
       PT Alam Tri Abadi to PT Adaro Andalan Indonesia. Such amendment to the articles of
       association has been approved by the Minister of Law and Human Rights of the Republic
       of Indonesia by the decree number AHU-0046973.AH.01.02.TAHUN 2024 of July 31st,
       2024.

       The Company’s articles of association have been lastly amended based on the Deed of
       the Statement of Shareholders’ Resolutions number 14 of May 8th, 2025 made before
       Humberg Lie, S.H., S.E., M.Kn., a Notary in North Jakarta. The notification on the
       amendment to the articles of association has been received by the Minister of Law of the
       Republic of Indonesia as confirmed with the Receipt of the Notification on the Amendment
       to the Company’s Articles of Association number AHU-AH.01.03-0126591 of May 8th,
       2025 and the Receipt of the Notification on the Change of the Company’s Data number
       AHU-AH.01.09-0230492 of May 8th, 2025. This amendment is concerning the change in
       the Company's issued and paid-up capital.

       On November 26th, 2024, the Company received notification of the effectiveness of its
       registration statement from the Financial Services Authority (“OJK”) in its letter
       No. S-157/D.04/2024 to conduct the Company’s Initial Public Offering for a maximum of
       778,689,200 shares (10% of the 7,786,891,760 issued and fully paid-up share capital).
       On December 2nd, 2024, the Company received approval for the listing of its securities on
       the Indonesia Stock Exchange (“IDX”) from the IDX Board of Directors in its letter
       No. S12569/BEI.PP2/12-2024.

       The Company’s business activities are holding-company activities (for subsidiaries
       operating in coal mining, mining services, management consultancy, water resources
       management, power generation, and specialized freight transportation), other
       management consultancy activities, in addition to operating in the sectors of oil palm
                                        4
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  plantation, and rubber and other latex-producing crops plantation.

  Management and supervision

  The compositions of the Company’s Board of Directors and Board of Commissioners on
  the date of this Information Disclosure are as stated in Deed number 1 of September 3rd,
  2024 made before Humberg Lie, S.H., S.E., M.Kn., a notary in North Jakarta, which has
  been notified to the Minister of Law and Human Rights of the Republic of Indonesia as
  follows:

  Board of Commissioners

  President Commissioner (Independent) :           Budi Bowoleksono
  Commissioner                         :           Primus Dorimulu

  Board of Directors

  President Director                       :       Julius Aslan
  Director                                 :       Priyadi
  Director                                 :       Lie Luckman
  Director                                 :       Susanti

2. KPI

  Brief history

  KPI is the Company’s Controlled company. KPI was established based on the Deed
  number 29 of January 20th, 2022 made before Humberg Lie, S.H., S.E., M.Kn., a notary
  in North Jakarta. The deed of establishment has been approved by the Minister of Law
  and Human Rights of the Republic of Indonesia by Decree number AHU-
  0005395.AH.01.01. Tahun 2022 of January 21st, 2022. KPI’s articles of association have
  been amended several times with the latest amendment based on Deed number 12 of
  April 15th, 2026 made before Humberg Lie, S.H., S.E., M.Kn., Notary in North Jakarta,
  concerning the increase of issued and paid-up capital. The amendment to the articles of
  association has obtained the notification of receipt from the Minister of Law of the
  Republic of Indonesia by Receipt of Notification of the Amendment to the Articles of
  Association number AHU-AH.01.03-0109302 of April 15th, 2026.

  KPI’s purpose and objective, among others, are to operate in the other power supporting
  activities, and rentals and operating leases of machineries, equipment, and other tangible
  items not included in others.

  Management and supervision

  The compositions of KPI’s Board of Directors and Board of Commissioners on the date
  of this Information Disclosure as stated in the Deed number 57 of June 18th, 2026 made
  before Humberg Lie, S.H., S.E., M.Kn., a notary in North Jakarta, which are as follows:

  Board of Commissioners

  President Commissioner           :       Endang Ahmad Zakaria
  Commissioner                     :       Miftahul Jannah
  Commissioner                     :       Willy Heriadi



                                       5
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        Board of Directors

        President Director                :         Rachmanoe Indarto
        Director                          :         R. Giri M. Natakusumah
        Director                          :         Sudirman Utomo


B. NATURE OF THE AFFILIATION OF THE PARTIES CONDUCTING THE TRANSACTION
   WITH THE COMPANY

  Pursuant to POJK 42/2020, an Affiliated-Party Transaction is an activity and/or transaction made
  by a public company or controlled company with (an) Affiliate(s) of the public company or (an)
  Affiliate(s) of the members of the board of directors, members of the board of commissioners,
  major shareholders, or Controlling parties, include any activity and/or transaction made by a
  public company or controlled company for the interest of the Affiliate of the public company or
  the members of the board of directors, members of the board of commissioners, major
  shareholders, or Controlling parties.

  There is an Affiliated-Party relationship as stipulated by POJK 42/2020 between the Company
  and KPI, a relationship between a company and a party—whether directly or indirectly—that
  controls or is controlled by that company, as stipulated in article 1 point 1 letter d of POJK
  42/2020.

C. EFFECTS OF THE TRANSACTION ON THE COMPANY’S FINANCIAL CONDITION
   (PROFORMA)

                                                                                thousand US$
                                    Audited                                       Proforma
       Balance Sheet                                        Transaction
                               December 31st, 2025                            December 31st, 2025
   Current assets                              1,796,272              -                 1,796,272
   Non-current assets                          3,910,004              -                 3,910,004
   Total assets                                5,706,276              -                 5,706,276
   Short-term liabilities                        922,656              -                   922,656
   Long-term liabilities                       1,133,992              -                 1,133,992
   Total liabilities                           2,056,648              -                 2,056,648
   Equity                                      3,649,628              -                 3,649,628
   Total liabilities and                       5,706,276              -                 5,706,276
   equity

                                                                                thousand US$
                                    Audited                                       Proforma
        Profit & Loss                                       Transaction
                               December 31st, 2025                            December 31st, 2025
   Revenue                                      4,910,263                 -              4,910,263
   Cost of revenue                            (3,648,568)                 -            (3,648,568)
   Gross profit                                 1,261,695                 -              1,261,695
   Operating income                             1,042,680                 -              1,042,680
   Net income                                     849,184                 -                849,184




                                              6
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       D. EXPLANATION, CONSIDERATION AND RATIONALE FOR EXECUTING THE
          TRANSACTION IN COMPARISON WITH THE CONDITION IF A SIMILAR TRANSACTION IS
          EXECUTED WITH A NON-AFFILIATED PARTY

         The Company executed this transaction with KPI because it viewed that this step will provide
         for KPI’s financing needs efficiently, as oppose to third-party funding. The Company has
         acquired thorough understanding on KPI’s financial condition and operational requirements,
         so that the loan can be used properly and in accordance with the objective.

         The documents associated with the Loan Agreement have been prepared to incorporate the
         same terms and conditions as those incorporated in transactions made with an unaffiliated party,
         thus the terms and conditions of the Affiliated-Party Transaction have been made on an arm’s
         length basis.

III.     SUMMARY OF THE APPRAISER’S REPORT

         Pursuant to article 4 of POJK 42/2020, publicly-listed companies intending to execute an
         Affiliated-Party Transaction must use an appraiser’s service to determine the fair value of the
         object of the Affiliated-Party Transaction and/or the fairness of the transaction.

         To ensure the fairness of the intended Transaction, the Company appointed an Independent
         Appraiser based on the quotation No. 0003/2.0142-00/PP-B/DSS-01/0177/V/2026 of May 11th,
         2026 which has been approved by the Company.

         The following is the summary of the fairness opinion as presented in the Appraiser’s Report:

         i.     Identity of the parties to the transaction

                The Company is the assignor. The parties to the transaction are the Company and KPI.

         ii.    Object of the analysis for the fairness opinion

                The object of the analysis for the fairness opinion herein is the planned transaction of the
                Loan Agreement.

         iii.   Purpose and objective of the fairness opinion

                The purpose and objective of this fairness opinion is to fulfill the provisions of
                POJK 42/2020.

         iv.    Assumptions and Limiting Conditions

                1. The Appraiser’s Report opinion is a non-disclaimer opinion.
                2. All of the data, statements and information received by the Independent Appraiser
                   from the management and the data and information available in the public domain,
                   in particular those concerning the economic and industry data, are deemed accurate
                   and obtained from the sources of credible accuracy.
                3. The Independent Appraiser has reviewed the documents used in the process of
                   rendering the fairness opinion.
                4. The Appraiser’s Report was compiled to fulfill the capital market purposes and the
                   FSA’s provisions and not for tax or other purposes other than the capital market
                   purposes.
                5. In conducting the analysis, the Independent Appraiser made a number of assumptions
                   and relied on the accuracy, reliability and completeness of all financial information and
                   other information provided by the Company or publicly available, which in principle
                                                    7
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                   was true, complete and not misleading, and the Independent Appraiser is not
                   responsible for conducting an independent examination on such information.
                   Independent Appraiser also relied on the warranty of the Company’s management that
                   they were not aware of any fact that may cause the information provided for the
                   Independent Appraiser become incomplete or misleading.
               6. The Independent Appraiser assumes that from the issuance date of this fairness
                   opinion until the execution date of the planned corporate action, there will be no
                   changes that may have material effects on the assumptions used in compiling this
                   fairness opinion. The Independent Appraiser is not responsible for reaffirming or
                   completing or updating the opinion due to the changes to the assumptions and
                   conditions or events occurring after the date of the Appraiser’s Report .
               7. All disputes in the forms of criminal or civil cases (in or out of court) associated with
                   the appraisal object is not under the Independent Appraiser’s responsibility.
               8. Changes made by the Government or private parties concerning the condition of the
                   appraisal object, on this matter the market condition, etc., are not within the
                   Appraiser’s responsibility.
               9. The Appraiser’s Report shall serve as part of the information used for decision making
                   consideration, however it is neither binding nor able to be used as the basis of a
                   decision which may lead to legal implications, because this report of fairness opinion
                   was prepared merely based on the area of discipline and capability of the Independent
                   Appraiser.
               10. The amounts were stated in US$ and/or equivalents on the request of the assignor.
               11. This Appraiser’s Report is invalid in the absence of the signature of the licensed
                   appraiser and the official corporate seal of Independent Appraiser.
               12. The Appraiser’s Report was prepared and intended only for the assignor, in
                   accordance with the purpose and objective as disclosed in the appraisal report. Other
                   than the purpose and objective as disclosed in the Report of Fairness Opinion, all
                   materials included in this appraisal report in parts or in its entirety including those
                   related with the references, opinion, names and professional affiliations of the
                   appraiser are not to be published without the written consent from the Appraiser.

         v.    Approaches and Appraisal Method

               In compiling the Appraiser’s Report on the planned transaction of the Loan Agreement,
               the Independent Appraiser has conducted an analysis through the approaches and
               appraisal procedure on the Loan Agreement, which include the following:
               a. Analysis on the planned transaction.
               b. Qualitative and quantitative analyses on the planned transaction.
               c. Analyses on the fairness of the planned transaction.

         vi.   Fairness Opinion on Transaction

               Based on the study and analysis conducted on all associated aspects for determining the
               positive impacts of the planned transaction of the Loan Agreement either qualitatively or
               quantitatively, the Independent Appraiser is of the opinion that the planned transaction of
               the Loan Agreement is fair.


IV.   BOARD OF DIRECTORS’ STATEMENT

      The Company’s Board of Directors declares that the transaction of the Loan Agreement has been
      made with sufficient procedure and ensures that the transaction has been executed in accordance
      with the generally applicable business practices, i. e. the procedure to compare it with the terms
      and conditions of a transaction made between parties who do not have an Affiliated relationship
      and made by fulfilling the arm’s-length principle.

                                                  8
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V.    BOARD OF COMMISSIONERS’ & BOARD OF DIRECTORS’ STATEMENT

      The Company’s Board of Commissioners and Board of Directors hereby declare that the Loan
      Agreement is an Affiliated-Party Transaction that does not contain any conflict of interest.

      The Company’s Board of Commissioners and Board of Directors hereby declare that they have
      carefully reviewed the information available regarding the Loan Agreement as explained in this
      Information Disclosure, and all material information regarding the Loan Agreement has been
      disclosed in this Information Disclosure and the material information is true and not misleading.
      Subsequently, the Company’s Board of Commissioners and Board of Directors hereby declare that
      they hold full responsibility on the accuracy of all information provided in this Information Disclosure.

VI.   ADDITIONAL INFORMATION

      The Company’s shareholders wishing to receive further information on the Affiliated-Party
      Transaction as explained in this Information Disclosure can contact:


                                 PT Adaro Andalan Indonesia Tbk
                                       Cyber 2 Tower 26th Floor
                                Jl. H.R. Rasuna Said Blok X-5, No.13
                                      Jakarta 12950 – Indonesia
                        Telephone: (021) 2553 3065 Facsimile: (021) 2553 3066
                                      www.adaroindonesia.com

                                 for the attention of: Corporate Secretary
                                   Email: corsec@adaroindonesia.com


* This Information Disclosure is made in both Indonesian dan English version. In case of discrepancies
  between the Indonesian and English version, the Indonesian version shall prevail.




                                                     9

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Names mentioned 16 people and organisations named in the text · linked when the evidence is strong

linked org ADARO ANDALAN INDONESIA Tbk p.1 ×12
linked org PT Alam Tri Abadi p.4
linked person Budi Bowoleksono p.5
linked person Primus Dorimulu p.5
linked person Julius Aslan p.5
linked person Lie Luckman p.5
possible person Ir. Rusli · Notaris p.4 ×2
unresolved org Financial Services Authority p.1 ×3
unresolved org Salman dan Rekan p.2 ×2
unresolved org Rianto & Rekan p.3
unresolved org Minister of Law and Human Rights p.4 ×4
unresolved person Humberg Lie · Notaris p.4 ×8
unresolved org PT Adaro Andalan Indonesia. Such p.4
unresolved org Minister of Law p.4 ×2
unresolved org Indonesia Stock Exchange p.4

Extraction attempts how the parser did, and what it refused

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Rule parser Needs review confidence 0.091 3606 ms 12 Sep 2026 21:53
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