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    THEME
    EXPLANATION

    Expanding Our Horizon
    Advancing Together
    AKR is deeply committed to achieving the Sustainable               and equal work environment where every individual,
    Development Goals (SDGs), with a focus on the crucial              regardless of gender, feels valued and able to contribute
    principle of “no one left behind.” This spirit is the foundation   significantly. Prioritizing workplace safety and health
    of our commitment to inclusive progress and enhancing              underscores our commitment to humanitarian values.
    the welfare of every member of the community, which we
    see as essential for true sustainability.                          AKR is also committed to making a positive impact in
                                                                       the Communities we serve. This includes community
    Through AKR’s ESG Commitment Statement, “Progressing               empowerment programs, educational and health
    with Purpose,” we are dedicated to sustainable growth              support, and bolstering local economies through
    and development of our business portfolio. We aim to seize         infrastructure improvements, engaging local suppliers,
    new opportunities and continually enhance all aspects of           and job creation. We believe that thriving communities
    AKR’s business in alignment with sustainability values,            contribute to the company’s growth. Therefore, we
    responsible and environmentally conscious operations,              partner with local governments, NGOs, and community
    and aiding the shift towards a low-carbon economy.                 groups to design and implement initiatives that improve
                                                                       life quality and create shared value.
    Leveraging      our   network’s    strength      and   core
    competencies, AKR supports the government’s energy                 Understanding that our sustainability efforts must be
    transition initiatives with biodiesel programs and is              underpinned by robust corporate governance, AKR
    carefully evaluating the adoption of alternative energy            pledges to uphold Ethical Behavior, Accountability,
    sources, such as gas and solar panels. We are enhancing            Transparency, and Sustainability across all operational
    the distribution of biodiesel nationwide as an alternative         facets. We enforce ethical governance practices, adhere
    energy source. Additionally, we have strategically                 to relevant regulations, and maintain a strong internal
    diversified AKR’s business by investing in the development         control system. Through effective risk management
    of Special Economic Zones, envisioned as Green Industrial          and wise decision-making, our goal is to foster trust and
    Estates that foster the sustainable growth of industries           sustainable value for all stakeholders.
    and the economy, powered entirely by cleaner energy
    sources. With these investments, we aim for AKR to                 By synergizing Our Business Portfolio, Our People,
    spearhead new economic opportunities, champion                     Our Communities, and Our Conduct, AKR is dedicated
    sustainability, and contribute to national carbon emission         to generating significant and positive impacts for all
    reduction efforts.                                                 stakeholders. We believe that through collaborative
                                                                       efforts, the company can broaden perspectives and
    AKR’s people plays a crucial role in this journey. We invest       collectively advance towards a brighter, more inclusive
    in our human resources, focusing on capacity building              future for everyone.
    and employee welfare through various training and
    development programs. Our goal is to foster an inclusive




      Sustainability Report 2023
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Sustainable   Company   Our Business   Our                 Our                  Our Conduct:
Performance   Profile   Portfolio      People              Communities          Governance, Ethics      3
Highlights                                                                      and Compliance




                                         Kayak in the Forefront
                                         The kayak is symbolic of AKR as a leader in sustainability
                                         initiatives, and the principle of “no one left behind”. This
                                         craft can break through the water, demonstrating AKR’s
                                         leadership in exploring new opportunities, enhancing
                                         sustainability, and transitioning to a low-carbon economy.

                                         Synergy and Collaboration for a Better Future
                                         Like the V formation that enables a group of kayaks to
                                         move more efficiently together, AKR believes that closer
                                         collaboration with stakeholders can expand horizons
                                         allowing a cohesive forward momentum towards an
                                         improved, inclusive future.

                                         Color Transition
                                         The water ripples generated by the first boat visualize
                                         ‘Expanding Our Horizons’, producing a transition from blue
                                         to green that represents AKR’s leadership in sustainability.

                                         Stability of the Kayak
                                         Kayaks are known for their strength and stability, allowing
                                         them to return to their original position, even after
                                         capsizing in a storm. Metaphorically, this reflects AKR’s
                                         resilience and steadfastness as it conducts business while
                                         simultaneously leading sustainability initiatives.




                                                                                        www.akr.co.id
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    LIMITATIONS
    AND DISCLAIMERS

    PT AKR Corporindo Tbk’s Sustainability Report for the 2023 Fiscal Year provides information on economic, social,
    environmental, and corporate governance performance throughout that fiscal year. Published concurrently with the
    Company’s Annual Report, this report includes projections, plans, strategies, policies, and corporate objectives, which
    are considered forward-looking statements. Forward-looking statements in this report encompass targets, expectations,
    forecasts, estimates, and business projections that may be influenced by the development of sustainability strategy
    implementation and changes in economic, social, political, and relevant regulatory conditions. It is essential to note that
    these forward-looking statements carry risks and uncertainties that could result in actual developments differing from
    those described in this report. In the context of this report, the terms “Company,” “AKR,” or “We” refer to PT AKR Corporindo
    Tbk.




      Sustainability Report 2023
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Sustainable          Company           Our Business        Our                 Our                  Our Conduct:
Performance          Profile           Portfolio           People              Communities          Governance, Ethics      5
Highlights                                                                                          and Compliance




   TABLE
   OF CONTENTS

 Theme Explanation                                    2       04. Our People
 Limitation & Disclaimer                              4       Employment Practices                                   93

 Table of Content                                     5       Occupational Health And Safety                        100

 2023 Sustainability Performance Highlights           6       Employee Diversity, Inclusion And
                                                                                                                     107
                                                              Engagement

                                                              Non-Discrimination And Equal Opportunities             114

 01. About This Report                                        Employee Training and Development                      118

 About This Report                                    10


                                                              05. Our Communities
 02. Company Profile                                          Social Responsibility & Sustainable
                                                                                                                     130
                                                              Community Development
 About AKR                                            18
                                                              Involving Local Suppliers                              135
 Corporate Vision, Mission & Values                   21

 General Information and Corporate Identity           27

 Awards and Certification                             30
                                                              06. Our Conduct: Governance, Ethics and
 Important Events 2023                                32      Compliance

 Board of Directors’ Message                          35      Governance Structure And Composition                  148

 Responsibility Statement of The Board of                     Transparency And Accountability                        151
 Commissioners and Board of Directors for
                                                      42      Risk Management                                        154
 The Sustainability Report 2022 of
 PT AKR Corporindo Tbk                                        Business Ethics And Compliance                         158

 Sustainability Strategy                              44


                                                              List Of Disclosure Based on POJK NO.51/
                                                                                                                     160
                                                              POJK.03/2017
 03. Our Business Portfolio
                                                              GRI Content Index                                      163
 A Strong and Robust Business Portfolio               54

 Realizing ESG Principles in the Development
                                                      60
 of the East Java Industrial Zone SEZ JIIPE

 Strong Financial Fundamentals                        63

 Customer Satisfaction                                68

 Operational Advantages And Technogy
                                                      70
 Utilization

 Managing Our Environmental Fooprint                  77




                                                                                                            www.akr.co.id
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    SUSTAINABILITY PERFORMANCE
    OVERVIEW 2023                            [SEOJK B.1] [SEOJK B.2] [SEOJK B.3]




    Total Sales and Revenue                                                        Net Profit


    Rp42.087                                                                       Rp2.780
    billion                                                                        billion

    Income Tax, Final Tax, and           Average Domestic Component Level          Dividend Distribution to all
    Financial Income-related Final Tax   (TKDN) for B30 Product                    shareholders, Increased by 197.6%


                                         43,31%
    Increased by 4.6% compared to                                                  compared to the total dividends
    the previous period                                                            distributed in the previous year


    Rp644,68                                                                       Rp2.467,15
    billion                                                                        billion

    Total Renewable Energy Used in       AKR’s Emission Intensity                  Total volume of recycled water by



    142.065,77 0,02
    AKR’s Operations                                                               JTT and ARUKI in 2023 as efforts for
                                                                                   water conservation



    GJ
               Ton CO eq/ Rp million               2
                                         Gross Profit
                                                                                   6,1
                                                                                   million liters

                                         Total AKR’s Environmental
                                         Expenditure


                                         Rp4+
                                         billion


                                         24%
    Total Number of AKR Employees                                                  Gross Profit from AKR Trading


    2.813
                                                                                   allocated for CSR

                                         of middle-up management
                                         positions at AKR are held by women.       0,3%
    Safe Distance Traveled without                                                 Realization of CSR Funds in 2023


                                                                                   Rp24+
    Accidents


    34,31                                                                          miliar
    million Km



     Sustainability Report 2023
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Sustainable         Company              Our Business         Our              Our                  Our Conduct:
Performance         Profile              Portfolio            People           Communities          Governance, Ethics       7
Highlights                                                                                          and Compliance




PEOPLE

                     Indicators                               2023                2022                     2021

 Number of Personnel (employee)                                        2.813             2.645                     2.613

 Recruitment (employee)                                                 485                  439                     446

 Av. Training Hours per Employee

 Male (hours)                                                          16,82                 12.7                  27.75

 Female (hours)                                                        25,91                 36.2                  15.16

 Number of Fatalities (unit)                                               0                   0                         0



PORTFOLIO

                    Indicators                                2023                2022                     2021

 Energy Consumption (GJ)                                      781.357,57          667.039,76                742.051,76

 Emissions

 Scope 1 (Ton CO2 eq)                                           25.016,20           20.566,03                25.070,28

 Scope 2 (Ton CO2 eq)                                           10.784,07           12.431,07                12.102,10

 Scope 3 (Ton CO2 eq)                                           56.329,42           51.912,28                53.252,87

 Emission Intensity
                                                                        0,02                 0,02                    0,04
 (Ton CO2 eq/ Rp million Gross Profit)

 Water Withdrawal (m3)                                            471.180             614.359                   450.943

 Hazardous Waste (tons)                                                502,3             807,4                     432,7

 Non-Hazardous Waste (tons)                                          1.750,8             2.986                     2.181



COMMUNITY

                    Indicators                                2023                2022                     2021

 Company CSR Fund (Rp)                                  24.197.277.383,00      22.852.287.343         28.527.958.498




                                                                                                            www.akr.co.id
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    01
     About
This Report

      www.akr.co.id
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           The AKR Sustainability Report reflects the Company’s commitment to
           implementing principles of transparency, accountability, and responsibility
           for all stakeholders. In this report, AKR expresses its adherence to
           conducting business and activities responsibly and sustainably, with the
           goal of making a positive contribution to stakeholders and the progress of
           Indonesia.



     ABOUT
     THIS REPORT
     AKR’s 2023 Sustainability Report reflects the Company’s         The AKR Sustainability Report is prepared based on the
     commitment to sustainable principles and performance,           Financial Services Authority Regulation No. 51/POJK.03/2017
     involving economic, social, and environmental areas.            regarding the Implementation of Sustainable Finance for
     The report forms part of the Company’s compliance               Financial Institutions, Issuers, and Public Companies, as
     with applicable regulations, including Article 66 C of Law      well as the Financial Services Authority Circular Letter No.
     No. 40 of 2007 concerning Limited Liability Companies,          16/SEOJK.04/2021 concerning the Form and Content of
     which mandates the annual submission of Social and              the Annual Reports of Issuers or Companies. Additionally,
     Environmental Responsibility Activity Reports. The              this report follows the Global Reporting Initiatives (GRI)
     2023 Sustainability Report is the eleventh issued by the        guidelines and refers to the Sustainable Development
     Company.                                                        Goals (SDGs) in the Roadmap of the National Medium-
                                                                     Term Development Plan 2020-2024, as well as Presidential
     Through the Sustainability Report, AKR provides                 Regulation No. 59/2017 on the Achievement of Sustainable
     comprehensive information to all stakeholders as to the         Development Goals (SDGs).
     Company’s commitments, efforts, and contributions
     in implementing sustainable programs, initiatives, and          This Sustainability Report contains information regarding
     policies aligned with the Sustainable Development Goals         the Company’s sustainability performance during the
     (SDGs).                                                         period from January 1, 2022, to December 31, 2023, covering
                                                                     the parent company, PT AKR Corporindo, Tbk, as well as all
     In preparing this report, the terms “AKR,” “Company,” or        consolidated subsidiaries in the Financial Statements.
     “We” are used to represent PT AKR Corporindo Tbk, and           [GRI 2-2] [GRI 2-3]
     all financial information and numerical data is stated in
     Rupiah (IDR) with numeric notation in the Indonesian
     language.




     The scope of the AKR Sustainability Report is as follows:


      Line of Business              Company Name      Abbreviation        Location               Status          % Ownership

      Trading &               PT AKR Corporindo                        West Jakarta,
                                                    AKR                                  Parent Company          -
      Storage                 Tbk.                                     DKI Jakarta

                              PT AKR Transportasi                      West Jakarta,     Subsidiary, Direct
      Transportation                                ATI                                                          99,90
                              Indonesia                                DKI Jakarta       Ownership

                              PT AKR Sea                               West Jakarta,     Subsidiary, Direct
      Transportation                                AST                                                          99,99
                              Transport                                DKI Jakarta       Ownership

      Terminal                PT Jakarta Tank                          North Jakarta,    Subsidiary, Direct
                                                    JTT                                                          51,00
      Storage                 Terminal                                 DKI Jakarta       Ownership




       Sustainability Report 2023
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Sustainable                Company                    Our Business               Our                        Our                     Our Conduct:
Performance                Profile                    Portfolio                  People                     Communities             Governance, Ethics           11
Highlights                                                                                                                          and Compliance




  Line of Business             Company Name                    Abbreviation                  Location                    Status             % Ownership

 JIIPE Industrial          PT Berkah Kawasan                                           Gresik, East                                         60 (Melalui
                                                            (JIIPE-BKMS)                                       Joint Venture
 Estate                    Manyar Sejahtera                                            Java                                                 UEPN)

                           PT Berlian Manyar                                           Surabaya, East                                       40 (Melalui
  JIIPE Port Area                                           (JIIPE-BMS)                                        Joint Venture
                           Sejahtera                                                   Java                                                 UEPN)

 Other -                   PT Arjuna Utama                                             Surabaya, East          Subsidiary, Direct
                                                            ARUKI                                                                           99,96
 Manufacturing             Kimia                                                       Java                    Ownership

 Other - JV                                                                                                                                 50,10
                           PT Aneka Petroindo                                          West Jakarta,
 Trading Retail                                             APR                                                Joint Venture                (Through
                           Raya                                                        DKI Jakarta
 Petroleum                                                                                                                                  AKRIDA)

 Other - JV                                                                                                                                 50,10
                           PT Dirgantara                                               West Jakarta,
 Trading Aviation                                           DPR                                                Joint Venture                (Through
                           Petroindo Raya                                              DKI Jakarta
 Fuel                                                                                                                                       AKRIDA)

*Policies for entities other than those mentioned follow the policies applicable in PT AKR Corporindo Tbk. (AKR)




Restatement & Significant Changes                                                   Principles & Reporting Quality
Statement
[SEOJK C.6] [GRI 2-4]                                                               The principles that serve as the foundation and guidance
                                                                                    for AKR in preparing this Sustainability Report follow the
In compiling these reports, AKR continually strives to                              Global Reporting Initiatives (GRI) guidelines, focusing on
enhance their quality by making improvements in the                                 Impact, Material Topics, Stakeholders, and Due Diligence.
presentation of information, modifying measurement
methods and assumptions, as well as collecting more                                 In assessing the quality of the report’s content and
accurate data. Therefore, any changes, whether in the                               information, AKR consistently refers to the GRI standards,
presentation of information, modification of measurement                            considering and accommodating the 8 reporting
methods and assumptions, or better data collection, will be                         principles, including aspects such as accuracy, balance,
specifically communicated along with their implications.                            clarity, comparability, completeness, sustainability context,
                                                                                    reliability, and timeliness. Further details as to the 8
In 2023, there is a restatement of energy, emissions, and                           reporting principles are as follows:
safe working hours data for 2022 and 2021.



Accuracy                                 Balance                                   Clarity                                 Timeliness
The information presented must be        The Company’s performance must            The information presented must be       Reports must be published regularly
accurate and detailed so that it can     contain both positive and negative        easy to understand for stakeholders     so that stakeholders can make
be used by stakeholders to assess        aspects so that it can be assessed        to access.                              decisions in a timely manner based
the Company’s performance.               rationally and thoroughly.                                                        on available information.




Completeness                             Sustainability Context                    Reliability                             Comparability
The information in the report must       The report considers the                  To enable fact-checking, the            The information must be consistent
present fully the activities, events,    broad context of sustainable              report must contain and state the       and able to be used by stakeholders
and impacts for the reporting period     development, including using              information and processes used          to assess changes in Company
                                         international references such as          in preparing it. This will reflect      performance that occur within a
                                         the OECD Guidelines, Sustainable          the quality and materiality of the      certain period, and should include
                                         Development Goals (SDGs), and UN          information presented.                  data and information for several
                                         Guiding Principles on Business and                                                years prior to the reporting period
                                         Human Rights. In addition to the                                                  used.
                                         global perspective, this report also
                                         considers local and national contexts
                                         based on the operational areas.




                                                                                                                                              www.akr.co.id
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     Determining Material Topics
     [GRI 3-1]

     The material topics in this report are compiled and established following the 2021 Global Reporting Initiatives (GRI)
     Standard, also known as the AKR Materiality Framework, and conducted through the following steps:




     Step 01                   Benchmarking with industries and similar companies in AKR’s business sectors, such as logistics and distribution,
                               storage and transportation, industrial estate, and other businesses. Material topics for each sector are mapped using
     Desktop                   the Sustainability Accounting Standards Board (SASB) structure, according to the International Standard Industry
     Research                  Classification (ISIC).




     Step 02                   The results of benchmarking, SASB mapping and ISIC are presented in an in-depth discussion involving the AKR ESG Task
     Materiality               Force, consisting of representatives from all AKR subsidiaries.
     Workshop



     Step 03                   In this discussion, the ESG Task Force prioritizes each topic regarding the Company’s business sustainability and considers
                               expectations from stakeholders, both from subsidiaries and the AKR parent company.
     Prioritize




                               Validation of material topics is carried out in the ESG Committee forum, consisting of senior management at AKR. It is
     Step 04                   subsequently aligned with the AKR Sustainability House, which serves as an umbrella for sustainability strategies for all
     Validation                initiatives in AKR and its subsidiaries.




     Step 05                   Final approval of the list of material topics for the 2023 AKR Sustainability Report is conveyed by the AKR Board of
                               Directors.
     Approval




     Determining Material Topics
     [GRI 3-2][GRI 3-3]

     Material topics in the AKR Sustainability Report have significant and prioritized impacts on the sustainability of Company
     operations. Their determination is made by considering relevant issues in each operational industry sector, referring
     to the Sustainability Accounting Standards Board (SASB) to map these relevant issues. These are then combined with
     the expectations of stakeholders that have been continually identified through engagement processes with the parent
     company and in each subsidiary.




        Sustainability Report 2023
Page 13
Sustainable                           Company                    Our Business               Our                        Our                     Our Conduct:
Performance                           Profile                    Portfolio                  People                     Communities             Governance, Ethics           13
Highlights                                                                                                                                     and Compliance




                         AKR’S Topic Hotspot based on Sustainability Accounting Standards Boards Materiality Map


                                                                                                           Integrated Industrial
                                        Trading & Distribution          Transportation & Storage                                              Other Businesses
                                                                                                               & Port Estate
  Cat.                  Issues
                                                                                                                                                     bp AKR
                                                                                  Road         Marine                    Port &       Adhesives                  Aviation
                                       Chemicals     Biofules       Storage                               Industrial                                  Petrol
                                                                                Transport     Transport                  Utilities   Manufacturing                Fuel
                                                                                                                                                     Stations

                   GHG Emissions


                   Air Quality


                   Energy
                   Management
  Environment




                   Water & Waste
                   Management


                   Waste &
                   Hazardous
                   Material
                   Management


                   Ecological
                   Impacts


                   Human Rights
                   & Community
                   Relations


                   Customer
                   Privacy


                   Data Security
  Social Capital




                   Access &
                   Affordability


                   Product
                   Quality &
                   Safety


                   Customer
                   Wellfare


                   Selling Practice
                   & Product
                   Labelling


                   Labor Practice
  Human Capital




                   Employee
                   Health &
                   Safety


                   Employee
                   Engagement,
                   Diversity &
                   Inclusion




                                                                                                                                                         www.akr.co.id
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                                                                                                                   Integrated Industrial
                                                     Trading & Distribution       Transportation & Storage                                           Other Businesses
                                                                                                                       & Port Estate
     Cat.                              Issues
                                                                                                                                                            bp AKR
                                                                                           Road        Marine                   Port &       Adhesives                  Aviation
                                                     Chemicals    Biofules    Storage                             Industrial                                 Petrol
                                                                                         Transport    Transport                 Utilities   Manufacturing                Fuel
                                                                                                                                                            Stations

                                   Product
                                   Design &
                                   Lifestyle
                                   Management
     Business Model & Innovation




                                   Business
                                   Model
                                   Resilience


                                   Supply Chain
                                   Management


                                   Materials
                                   Sourcing
                                   & Efficiency


                                   Physical
                                   Impacts
                                   of Climate
                                   Chance


                                   Business Ethics


                                   Competitive
                                   Behaviour
     Leadership & Governance




                                   Management
                                   of Legal &
                                   Regulatory
                                   Environment


                                   Critical
                                   Incident Risk
                                   Management


                                   Systemic Risk
                                   Management




     Sustainability Report 2023
Page 15
  Sustainable                    Company                    Our Business                 Our                          Our                       Our Conduct:
  Performance                    Profile                    Portfolio                    People                       Communities               Governance, Ethics        15
  Highlights                                                                                                                                    and Compliance




  The list of material topics and a materiality matrix, determined through the AKR Materiality Framework, and with a sectoral
  approach based on the ISIC Sectoral SASB Materiality Map for the 2023 Sustainability Report is as follows:


                                                                                                               CATEGORY 1: Environment
                                                                                             1     2           1. GHH Emission
                                                                                                               2. Air Quality
                                                                         2               3
                                                                                 2                             3. Energy Management
                                                                                                               4. Water & wastewater Management
                                                                  4
                                                                          1          4                         5. Waste and Hazardous Material Management
                                                                                                               6. Ecological Impact
                                                                                 4
                                                                             3                                 CATEGORY 2: Social Capital
                                                                                                               1. Human rights & Community Relations
Importance for stakeholder




                                                                                                               2. Customer Privacy & Data Security
                                                                                                               3. Access & Affordability
                                                5
                                                                                                               4. Product Quality & Safety
                                            3                                                                  5. Selling Practice & Product Labelling
                                                        5    1
                                       1
                                                                                                               CATEGORY 3: Human Capital
                                                                                                               1. Labour Practice
                                                        2                                                      2. Employee Health & Safety
                                                                                                               3. Employee Engagement, Diversity & Inclusion
                                           6
                                                                   3                                           CATEGORY 4: Business Model & Innovation
                                                                                                               1. Product Design & Lifecycle Management
                                                                                                               2. Business Model Resilience
                             3
                                                                                                               3. Supply Chain Management

                                                    1                                                          CATEGORY 5: Leadership & Governance
                                                                                                               1. Business Ethics
                                                                                                               2. Competitive behaviour
                                                                                                               3. Legal & Regulatory Compliance
                                                                                                               4. Critical Incident Risk Management
                                    Importance for the organisation




  Ensuring Report Credibility                                                                    Response to Previous Report Feedback
  [GRI 2-5][SEOJK G1]                                                                            [SEOJK G.3]

  To ensure the credibility of the report, both GRI and                                          This Sustainability Report has been updated based on
  POJK recommend the use of external assessment by                                               feedback received from the Financial Services Authority
  independent parties, which AKR acknowledges. Therefore,                                        (OJK) regarding the completeness of disclosures, in
  in future Sustainability Reports, the Company commits to                                       accordance with OJK Circular Letter No. 16/SEOJK.04/2021
  undergoing an external assurance process.                                                      regarding the Form and Content of the Annual Reports of
                                                                                                 Issuers or Public Companies.
  However, in the 2023 AKR Sustainability Report, the
  information and data presented have undergone internal                                         Accessibility and Feedback
  verification by the Company’s internal team, which                                             [GRI 2-3][SEOJK G.2]
  includes data contributors, division/department heads,
  corporate secretary, and final approval from the Board of                                      Stakeholders can download this Sustainability Report from
  Directors. Through this internal verification process, AKR                                     the Company’s website at www.akr.co.id. We also invite
  has ensured that all data and information in the report is                                     stakeholders to submit questions, suggestions, ideas,
  presented accurately and can be accounted for.                                                 criticism, and feedback via the form available at the end of
                                                                                                 the report, or by contacting:




                                                        Corporate Secretary PT AKR Corporindo Tbk

                                                                           AKR Tower Lantai 26,
                                                                      Jl. Panjang No.5 Kebon Jeruk,
                                                                      Jakarta Barat 11530, Indonesia

                                  +62 21 5311110                 +62 21 5311388, 5311185                  corporate.secretary@akr.co.id




                                                                                                                                                          www.akr.co.id
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Company
  Profile

     www.akr.co.id
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     COMPANY
     PROFILE

     PT AKR Corporindo Tbk provides logistics and supply            Throughout its history, AKR has formed strategic
     chain services in Indonesia and specializes in the             partnerships with various collaborators to expand its
     distribution of petroleum products (BBM) and basic             market reach and customer base. The company engages
     chemicals. To enhance the business and its operation, the      in strategic collaborations involving integrated industrial
     company consistently strengthens innovative information        areas and ports such as JIIPE, as well as partnerships in the
     technology platforms. This enables the monitoring of           fields of chemicals, retail BBM, and aviation fuel. Currently,
     product movements, inventory positions, and end-to-end         AKR has built a robust logistics infrastructure, involving 17
     product planning.                                              sea and river ports, as well as 20 storage tank points across
                                                                    the Indonesian archipelago.




     Operational Locations
     [SEOJK C.3] [GRI 2-1][GRI 2-6]




       Hub/Sea Ports
       Sea Ports
       River Ports




              Sumatera                      Java-Bali                    Kalimantan                        Sulawesi
           45,300 KL                   592,000 KL                      151,600 KL                      30,500 KL
             Medan Anggada                     Tj Priok                  Stagen – Kalsel                      Bitung
              Medan Gabion                Banten Ciwandan                  Pontianak
                                                                          Banjarmasin
         Palembang Andahanesa             Semarang Tj Emas                   Palaran
                   Lampung              Surabaya Nilam Timur           Buntok Muara Teweh
                                        Surabaya Nilam Utara
                                      Terminal Nilam Utara (TNU)
                                              Bandung
                                                 Bali
                                      Jakarta Tank Terminal (JTT)




       Sustainability Report 2023
Page 19
Sustainable         Company                Our Business          Our                  Our                   Our Conduct:
Performance         Profile                Portfolio             People               Communities           Governance, Ethics       19
Highlights                                                                                                  and Compliance




The AKR Footprint                                                  distribute subsidized fuel to several regions in Indonesia
                                                                   by the Oil and Gas Downstream Regulatory Agency (BPH
On November 28, 1977, PT AKR Corporindo Tbk was                    Migas).
established in Surabaya under the name PT Aneka Kimia
Raya where it was initially involved in the trade of basic         In 2013, AKR entered into a strategic partnership with
chemicals. In the 1970s, rapid growth in storage tanks for         Pelindo for the Java Integrated Industrial Port Estate (JIIPE)
basic chemicals and warehouses at several major ports              project in East Java. Located in Gresik, East Java, JIIPE is
in Indonesia positioned AKR as the largest distributor of          designed to be one of the largest integrated industrial and
chemicals in the country.                                          seaport estates in Indonesia, equipped with a deep-sea
                                                                   port and other supporting facilities.
In the 1980s, business growth drove AKR to relocate
its headquarters to Jakarta. Subsequently, in 1994, the            In its implementation, the JIIPE project is managed by PT
Company conducted its first public offering (IPO) and              Berkah Kawasan Manyar Sejahtera (BKMS) for industrial
was listed on the Indonesia Stock Exchange. The IPO took           area developments, while PT Berlian Manyar Sejahtera
place on October 3, 1994, with the stock code AKRA.                (BMS), is responsible for the operation of the deep-sea
                                                                   port. While in BKMS, AKR owns 60% of the Company’s
In 2004, in response to increasingly diverse business              shares indirectly through UEPN, while Pelindo owns 40%
developments, the Company changed its name to PT                   indirectly through BJTI. Share ownership applies otherwise
AKR Corporindo Tbk. As listed in the company’s Articles of         to PT BMS.
Association, AKR’s business activities include chemicals,
petroleum products (BBM), gas, logistics, transportation           On June 28, 2021, the government issued Government
services, warehouse and tank rentals, workshops,                   Regulation (PP) No. 71 of 2021 designating JIIPE as a Special
expedition and packaging, construction contractors and             Economic Zone (SEZ) for Technology & Manufacturing.
services (excluding legal services), as well as acting as a        This step positions JIIPE as one of the most competitive
representative and/or agency for other companies, both             industrial zones, attracting industry players in the Java
domestically and internationally.                                  and Eastern Indonesia regions. Gresik JIIPE SEZ aims
                                                                   for technology and manufacturing development and
In 2005, AKR became the first national private company             is a National Strategic Project and is set to become the
to distribute non-subsidized fuel products. In 2010, with          location for the world’s largest Copper Smelting Plant.
increasing trust from stakeholders, AKR was assigned to            The groundbreaking ceremony for this project took place
                                                                   in August 2021, with the presence of the President of
                                                                   Indonesia.



                              PT AKR CORPORINDO Tbk                                       PT PELABUHAN INDONESIA

                          A public listed company, leading                          A state owned ports in central Java, East
                        integrated logistic services and bulk                         Java, Bali, South Kalimantan, Central
                         chemical & energy distribution in                              Kalimantan and Nusa Tenggara
                                     Indonesia




                                    99.99%                                                          99.99%

                       PT USAHA ERA PRATAMA NUSANTARA                               PT BERLIAN JASA TERMINAL INDONESIA

                              Logistic services provider                                   Logistic services provider




                                            60%                                                  60%

                                                           40%                      40%
                       PT Berkah Kawasan Manyar Sejahtera                                 PT Berlian Manyar Sejahtera




                                                                                                                     www.akr.co.id
Page 20
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     In 2017, AKR began a strategic partnership with bp to           (JIIPE) Special Economic Zone (KEK) in Gresik and its
     develop the retail market for petroleum (BBM) and               surroundings, as well as explore opportunities beyond
     lubricants, as well as to distribute aviation fuel at various   JIIPE. AKR holds a majority ownership of 65%, while BBG
     airports in Indonesia. Concurrently, AKR strengthened its       owns 35%.
     position in the fuel distribution industry with the opening
     of bp AKR gas stations.                                         By the end of 2023, the number of bp AKR gas stations had
                                                                     reached 46 outlets. The implementation of an innovative
     In 2020, AKR Corporindo Tbk and the PETRONAS                    integrated technology system strengthens confidence in
     Chemicals Group Berhad formed a joint venture to                AKR as a business entity for the supply and distribution
     distribute chemicals in Indonesia. This collaboration was       of certain types of fuel oil (P3JBT). Going forward, the
     executed through their respective subsidiaries and has          company continues to expand its market coverage and
     been active since 2021.                                         customer base through cooperation with leading partners
                                                                     in the industry.
     Furthermore, on August 4, 2021, AKR expanded its presence
     in the clean energy sector by establishing a joint venture      In early 2024, AKR established PT Berkah Renewable Energi
     gas distribution company with PT Bayu Buana Gemilang            Nusantara (BREN), a business entity focused on operating
     (BBG). Through this joint venture, PT Berkah Buana Energi       power plants and related energy provision activities, based
     (BBE), a company owned by AKR, manages the distribution         in Gresik, East Java.
     of natural gas in the Java Integrated Industrial Port Estate


     Note :
     More detailed information about the history of AKR Corporindo can be found in the Annual Report.




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Sustainable   Company   Our Business   Our      Our           Our Conduct:
Performance   Profile   Portfolio      People   Communities   Governance, Ethics      21
Highlights                                                    and Compliance




COMPANY VISION, MISSION,
AND VALUES
[SEOJK C.1]




VISION

To become a key
player in providing
logistics services and
procurement solutions
for chemicals and
energy in Indonesia.
MISSION
To optimize the
Company’s potential to
continuously enhance
value for shareholders and
stakeholders.




                                                                      www.akr.co.id
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     COMPANY LOGO
     INTERPRETATION




     The company logo is designed to refer to the vision of becoming a leading player in logistics services provision and
     procurement solutions for chemicals and energy in Indonesia. This vision is guiding the company to achieve global
     excellence through asset and resource management, partnerships, and business strategies that drive the Company’s
     progress on a large scale.



     1. The company logo is formed by placing the letters         3. The red color on the letter “A” in the acronym “AKR”
        “AKR” from the company’s acronym at its center.              symbolizes a light representing the sincerity and
     2. The acronym “AKR” is positioned within a blue circle to      honesty of the company in conducting business
        signify that AKR is a globally reputed business entity.      through healthy and responsible business activities.
                                                                  4. The white color on the acronym signifies a professional
                                                                     attitude and the Company’s commitment to comply
                                                                     with applicable business regulations, always prioritizing
                                                                     fair and equal business competition practices.




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Highlights                                                                                                                      and Compliance




Company Business Activities                                                        include transportation and warehousing, construction,
[SEOJK C.4][GRI2-6]                                                                and the procurement of electricity, gas, steam, hot water,
                                                                                   and cold air. This alignment reflects the sustainable
AKR has diversified its business activities across                                 diversification and expansion within AKR’s business scope.
various fields, including industry, trade, transportation,
warehousing (including rental and leasing activities                               Trade and Distribution
without option rights), labor, travel agency, and other                            Non-subsidized Industrial Fuel Oil
supporting business activities. Additionally, the company                          Since 2005, the Company has been actively involved in
is involved in the procurement of electricity, gas, steam,                         the distribution of non-subsidized industrial fuel oil and
hot water, and cold air, as well as professional, scientific,                      continues to expand its logistics network facilities to serve
and technical activities in the form of construction                               customers in various sectors, including mining, power
services. Adjustments to these business activities are                             generation, manufacturing, transportation, and bunker
based on changes in Article 3 of the Company’s Articles                            storage. With strategically located tank terminal facilities
of Association approved at the Extraordinary General                               at several major ports in Indonesia, the total capacity has
Meeting of Shareholders on April 28, 2022.                                         reached 819,400 KL.

In carrying out its business activities, AKR engages in two                        The Company has also been engaged in the distribution
types of activities: main business activities and supporting                       of biodiesel since August 2018 as part of the government’s
business activities. The Company’s main business activities                        commitment to reduce greenhouse gas emissions,
are divided into four clear segments, including trading and                        enhance energy resilience, and achieve a 23% contribution
distribution of Fuel Oil (BBM) and Basic Chemicals, logistics                      target from New and Renewable Energy (EBT) by 2025.
infrastructure, manufacturing, and integrated industrial                           Through its extensive network of industrial customers,
and port areas. Meanwhile, supporting business activities                          AKR facilitates the use of clean energy in various industrial
                                                                                   sectors.


     INDUSTRIAL PETROLEUM PRODUCTS

                         Biodiesel                                    Marine Fuel Oil, IDO                           Lubricant




         Mining          Plantation      Power Plant              Manufacturer       Bunker          Manufacturer        Ship            Heavy
                                                                                     Services                                          Equitment




                  Ship           Shipping




Non-subsidized Retail Fuel Oil
Since April 2017, the Company has collaborated with bp to develop the retail fuel industry in Indonesia through a joint
venture named PT Aneka Petroindo Raya, known as “bp AKR Fuels Retail.” The bp AKR gas stations provide premium fuel
with Euro 4 standards and offer unique services such as a mini-market and food outlets. By the end of 2022, PT Aneka
Petroindo Raya had opened 36 bp AKR gas stations in various locations, including Jabodetabek, Surabaya, Malang, and
the rest area of the Cipularang Toll Road.


      RETAIL PETROLEUM PRODUCTS

                         Subsidized                                    Non-Subsidized                           Aviation Fuel
                         Biodiesel B30                            High-octane gasoline, and                          Avtur
                                                                  premium diesel with active
                                                                         technology



                            Truck                                        Motor Vehicles                             Aircraft




Subsidized Retail Fuel Oil
The company has been entrusted by BPH Migas since 2010 to distribute subsidized Motor Vehicle Fuel (BBM) through
Motor Vehicle Fuel Filling Stations (SPBKB) and Fishermen’s Fuel Filling Stations (SPBN) under the brand AKRA SOL,
which is currently a Biodiesel product.




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Page 24
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     AKR manages SPBKB and SPBN located in various regions of Indonesia, including the islands of Sumatra, Java, Bali, and
     Kalimantan. Regularly, the company receives tasks for distributing subsidized biodiesel from BPH Migas and participates
     in the One Price Fuel program in the 3T (Outermost, Frontier, and Disadvantaged) regions.


                                    Product Type                                             Product

                                                                   Biofuel (B30)
      Non-subsidized Industrial Fuel                               Industrial Diesel Oil (IDO)
                                                                   Fuel Oil (FO)

                                                                   Gasoline RON 90, RON 92, RON 95
      Non-subsidized Retail Fuel
                                                                   High Quality Diesel

      Subsidized Fuel                                              Biofuel (B30)



     Basic Chemicals
     AKR is the main distributor for PT Asahimas Chemical, providing basic chemicals such as chlor-alkali, solvents, and various
     organic and inorganic substances. The Company is also actively involved in trading and distributing basic chemicals from
     both local and international suppliers. In the 1970s, AKR constructed the first storage tank terminal in Indonesia.


           PRODUCT


           BASIC CHEMICAL PRODUCTS                                      CUSTOMERS

       •   Caustic Soda                  •   Soda Ash               •   Home Care and Personal Products
       •   Sodium                        •   Sulphuric Acid         •   Textile
           Hypochlorite                  •   Hydrochloric Acid      •   Glass
       •   Hydrogen Peroxide             •   Sodium Sulphate        •   Pulp and Paper
       •   PVC Resins                    •   Methanol               •   Fertiliser
                                                                    •   Chemical and Pharmacy
                                                                    •   Plastic
                                                                    •   Food Additive




     Lubricants                                                     IMIP airport in Morowali, Central Sulawesi. This milestone
     The Company is expanding its lubricants business through       positioned the Company as the first private enterprise to
     a subsidiary of PT Anugerah Krida Retailindo, namely PT        distribute aviation fuel in Indonesia.
     Anugerah Lubrindo Raya (ALR), established on February
     7, 2019. ALR engages in the trade and distribution of          Gas
     lubricants for the industrial, maritime, mining, and           The company and PT Bayu Buana Gemilang (BBG) signed
     commercial vehicle sectors under the Castrol brand.            a joint venture agreement on August 4, 2021 in which PT
                                                                    Berkah Buana Energi (BBE) was formed to manage the
     Aviation Fuel                                                  natural gas distribution network through pipelines from
     The Company formed a joint venture with Air bp in              the source to customers. The initial focus of the JV company
     November 2016 to distribute aviation fuel at airports in       is to develop business in the JIIPE Special Economic Zone
     Indonesia. This joint venture led to the establishment of      (KEK) in Gresik, East Java, to meet the industrial needs in
     PT Dirgantara Petroindo Raya (DPR). In August 2019, DPR        that area. AKR holds a 65% ownership stake, while BBG
     officially opened the first Avtur Depot at the dedicated       holds 35%.




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Highlights                                                                                               and Compliance




Services

Through its subsidiary, PT AKR Transportasi Indonesia, the Company provides land transportation services to support
logistics and distribution operations. The Company also owns large vessels used to transport products to consumers and
collaborates with third parties through PT AKR Sea Transport. In addition to the Company’s storage tanks, PT Jakarta Tank
Terminal, a subsidiary of the company, operates an independent tank terminal with a total capacity of 350,000 cbm at
the Tanjung Priok port. The Company continues to expand crucial infrastructure for receiving, storing, and transporting
various products in large quantities.

                                                       Product Type

                                Bulk Handling Services

                                Container Handling Services

                                Land and Sea Transportation

                                Storage Tanks

                                Vendor Managed Inventory

                                Warehousing




Manufacturing

The manufacturing segment of the Company is represented by PT Arjuna Utama Kimia (Aruki), based in Surabaya, East
Java. Aruki specializes in the production of high-quality wood adhesive materials, supplying various companies in the
wood and paper industry in Indonesia.

              Product Type                    Service Type                                Service Type

 Urea-formaldehyde Resin              Uloid                            Plywood & wood lamination

 High Solid Urea- formaldehyde
                                      Uloid                            Particle Board and MDF
 Resin

 Melamine- formaldehyde Resin         Uloid                            Plywood & wood lamination

 Planol- formaldehyde Resin           Uloid                            Plywood & wood lamination

 Two Component Vinyl Urethane
                                      Struct bond                      Wood working, Furniture, Flooring & FJLB
 Adhesive

 Polyacrylamide Monomer (PAM)                                          High performance dry strength enhancementresin
                                      HOFMANN
 Resin                                                                 for paper

 Polyacrylamide Monomer (PAM)                                          High performance dry strength enhancement resin
                                      HOPELON
 Resin                                                                 for paper

 Melamine Resin                       URAMIN                           Paper wet strength improvement resin

 Poly Vinyl Acetate                   PVAc                             Lem multiguna untuk kayu dan kertas




                                                                                                                 www.akr.co.id
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     Industrial Area

     As part of its sustainability strategy since 2013, AKR, together with Pelindo, has invested in the Java Integrated Industrial
     and Port Estate (JIIPE) in Gresik, East Java. The goal is to provide logistics and energy solutions for industrial customers
     and with a total area of 3,000 hectares, JIIPE aims to become the largest integrated industrial area with a port in Indonesia.
     Of this total area, 1,761 hectares are designated as an industrial zone, 406 hectares for the seaport, and 800 hectares for
     residential and commercial spaces, developed by the affiliated company PT AKR Corporindo Tbk.



                                    Business Line                                                Product

      Industrial Estate                                               Industrial Land

      Port and Port Services                                          Bulk Handling Services

                                                                      •     Power Plant
                                                                      •     Water Treatment Plant
                                                                      •     Waste Water Treatment Plant
      Utilities & Infrastructures
                                                                      •     Gas
                                                                      •     Fiber Optics
                                                                      •     Port Services



     Markets                                                              The Company also distributes biodiesel for motor vehicles
                                                                          and fishermen through the subsidized retail segment. AKR
     AKR operates storage tanks and distribution terminals in             sells biodiesel and RON 92 gasoline for motor vehicles and
     17 ports across Indonesia. With a comprehensive logistics            fishermen on the islands of Java, Sumatra, Kalimantan,
     fleet, including ships and trucks for the delivery of fuel oil       and Sulawesi.
     and basic chemicals, the Company has served thousands
     of businesses and industries throughout Indonesia.                   Green Energy Products
     Distribution encompasses biodiesel, fuel oil, and Euro               [GRI2-1] [SEOJK F.5]
     4 standard fuels to various industrial sectors, including
     commercial, mining, power generation, manufacturing,                 The Company is actively involved in developing supporting
     construction, fisheries, bunkering, and more.                        businesses related to environmentally friendly green
                                                                          energy products, including:
     Additionally, the Company has collaborated with bp                   • Providing high-quality biodiesel and Euro 4 gasoline
     Global to develop non-subsidized retail and aviation fuel            • Operating natural gas and solar power plants,
     segments. Currently, the Company manages 46 bp-AKR                     implemented in the JIIPE Gresik Special Economic
     gas stations in Jabodetabek, Surabaya, Malang, and toll                Zone.
     rest areas. For aviation fuel (avtur), the Company formed
     a joint venture, Air bp-AKR, which has established two
     depots in Indonesia.




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Highlights                                                                                                 and Compliance




  GENERAL INFORMATION
  AND COMPANY IDENTITY
  [GRI 2-1] [GRI 2-6]




                                                                                            2.813
                                                                                            Number of Employees
  Company Name [GRI 2-1]



  PT AKR Corporindo Tbk
                                                                                            people

  Establishment Date                         Legal Entity Status [GRI 2-1]

  28 November 1977                           Perseroan Terbatas                             Shareholders



                                                                                            60,17%
                                             Terbuka (Tbk)

                                                                                            PT Arthakencana Rayatama
  Business Field [GRI 2-6]                   Stock Listing on the Stock Exchange



                                                                                            38,16%
                                             Bursa Efek Indonesia pada
       Trading and Distribution              tanggal 3 Oktober 1994

       Logistics Services                                                                   Public
                                             Bonds
                                             Obligasi Berkelanjutan I AKR

                                                                                            1,68%
       Manufacturing                         Corporindo Tahap I Tahun 2017
                                             dengan Tingkat Bunga tetap
       Industrial Area                       Seri C                                         Treasury Stock



  Authorized Capital (Before Stock Split)


  Rp750.000.000.000
  divided into 37,500,000,000 shares,
  each with a nominal value of Rp20.


  Paid-up Capital (Before Stock Split)


  Rp401.469.492.000
  with a composition of 20,073,474,600 shares
  with a nominal value of Rp20 placed in the company.



  Legal Basis of Establishment [GRI 2-1]
  Deed Number 46 dated November 28, 1977, made before Sastra Kosasih,
  a Notary in Surabaya, and has been legalized as a legal entity based
  on the Decree of the Minister of Justice of the Republic of Indonesia
  Number Y.A.5/161/7 dated June 14, 1978, and has been announced in the
  State Gazette of the Republic of Indonesia Number 101 dated December
  19, 1978, Supplement Number 741/1978.



  Headquarters Address [SEOJK C.2]
  AKR Tower Lantai 26
  Jl. Panjang No.5 Kebon Jeruk
  Jakarta Barat 11530, Indonesia

  Corporate Contact

     +62 21 5311110
     +62 21 5311388, 5311185
     corporate.secretary@akr.co.id




                                                                                                                   www.akr.co.id
Page 28
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     Business Scale
     [SEOJK C.3]
                                                                          (in thousand Rupiah, unless stated otherwise)

                          Description             Unit     2023             2022                       2021

      Total                                   Orang               2,813            2,645                      2,613

      Total Assets                            Rp billion     30,255              27,188                    23,509

      Total Sales and Revenue                 Rp billion     42,087              47,550                    25,707

      Total Net Profit for the Current Year   Rp billion          3,078            2,403                      1,135

      Total Equity                            Rp billion     14,043              13,155                    11,299

      Total Liabilities                       Rp billion     16,212              14,033                    12,210




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Highlights                                                    and Compliance




                                                                      www.akr.co.id
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     AWARDS
     AND CERTIFICATIONS




                             1               2                      3                               4




                         5                       6                           7                          8




     Awards

     1.    Indonesia Best Business Transformation 2023 – by    5.   The Most Innovative Basic Industry Chemicals
           SWA                                                      Company for The Development High Quality
                                                                    Products through The Use of Technology, Indonesia
     2.    The Readiness Human Capital, The Talent in               Digital Innovation Awards 2023 by Warta Ekonomi
           Management, The Most Resilience Company 2023
           by Human Capital on Resilience Excellence Awards    6.   1st Best Indonesia Enterprise Risk Management
           (HCREA) 2023                                             2023, Category Public Company - Wholesale (Asset
                                                                    Rp 1T - Rp5T), by Economic Review
     3.    Transparency of 2023 Corporate Emissions
           Calculations for the Platinum Category              7.   1st Best Indonesia GCG 2023 , Category Public
                                                                    Company - Wholesale (Asset Rp 1T - Rp5T), by
     4.    2nd Best Indonesia Finance 2023, Category                Economic Review
           Public Company – Wholesale (Asset Rp 1T – 5T), by
           Economic Review                                     8.   The Best Oil and Gas Company - Bisnis Indonesia
                                                                    Awards 2023

                                                               9.   Indonesia Excellence GCG Awards 2023 - AKRA
                                                                    Managing a High Level of Company Performance in
                                                                    GCG Ethics, by Warta Ekonomi

          Sustainability Report 2023
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Sustainable        Company             Our Business       Our                Our                 Our Conduct:
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Highlights                                                                                       and Compliance




                   9                      10                        11                          12




                        13                     14                   15                     16




                                                            Certifications

10. Indonesia Top 20 GCG Awards 2023 in Trading &           16. ISO 9001:2015
    Distribution by The Iconomics                               Scope Industrial Petroleum Trading & Distribution
                                                                (Branch: Medan, Pontianak, Jakarta, Lampung,
11. The Best IT for Public Company - Category Industry          Bandung)
    by Economic Review

12. Top 50 Big Capitalization Public Listed Company
    2023 – IICD

13. High Dividend & High Market Capitalization based
    on Indeks Tempo - IDN Financials 52

14. Indonesia Best 20 Corporate Secretary in Trading &
    Distribution by The Iconomics

15. Living Legend Company in Managing Collaborate
    Stakeholders & Business Trends to Develop Strategic
    Resilience Category Platinum by Warta Ekonomi



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     IMPORTANT
     EVENTS




     February 7, 2023                                              April 28, 2023
     Visit of the Vice President of RI to the                      Distribution of Dividends for the Fiscal
     JIIPE Gresik Industrial Estate – Signing                      Year 2022
     a MoU for Gas Station Development
                                                                   During the Annual General Meeting (RUPS), approval
     Cooperation
                                                                   was granted for the dividend payment of Rp1.48 trillion,
                                                                   equivalent to Rp75 per share. This amount represents
     During his visit, Mr. lr. Prof. Dr. (HC) K.H. Ma’ruf Amin
                                                                   61.6% of the 2022 net profit, which reached Rp2.4 trillion.
     expressed appreciation for the progress of the JIIPE Gresik
     Industrial Estate in terms of investment and supporting
     infrastructure. The visit continued with the signing
     of a Memorandum of Understanding between AKR's
     subsidiary, PT Aneka Petroindo Raya (a Joint Venture
     between AKR and BP), and PT Jatim Sarana Utama for the
     expansion of BP station networks in several locations in
     East Java.




     July 28, 2023                                                 October 2, 2023
     Establishment of PT Anugerah Kreasi                           Establishment of PT Berkah Bunker
     Pratama Indonesia                                             Service
     AKR, through its two subsidiaries, PT Andahanesa Abadi        Through its subsidiaries, PT Anugerah Krida Retailindo and
     (AA) and PT Usaha Era Pratama, established a new business     PT Andahanesa Abadi, AKR established a business entity
     entity named PT Anugerah Kreasi Pratama Indonesia             providing port services for seaports, namely PT Berkah
     (AKPI) to engage in warehousing operations.                   Bunker Service (BBS).




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Highlights                                                                                               and Compliance




May 10, 2023                                                      June 20, 2023
Strategic Collaboration in Meeting                                President of the Republic of Indonesia
Electricity Needs at JIIPE                                        Inaugurates the Construction of the
                                                                  Largest Copper Foil Factory, Hailiang
PT PLN (Persero) supports the provision of electricity in
the Gresik Special Economic Zone (SEZ) up to 240 MVA by           President Joko Widodo conducted the ground-breaking
facilitating reliable, high-quality, and competitively priced     ceremony for the largest copper foil factory in Southeast
electricity supply for industrial customers throughout            Asia, PT Hailiang Nova Material Indonesia, in the Integrated
Indonesia.                                                        Industrial Estate JIIPE Gresik.




October 20, 2023                           December 6, 2023                           January 5, 2024
Purchase of AKRA 103 fleet                 Joint Development                          Establishment of
                                           Agreement with BP GAS &                    Business Entity PT Berkah
AKR has increased its capital by           POWER                                      Renewable Energy
Rp80 billion in its subsidiary, PT Sea                                                Nusantara (BREN)
Transport (AST), to acquire the AKRA       AKR has signed a Joint Development
103 fleet.                                 Agreement with BP GAS & POWER              PT    Berkah      Renewable    Energy
                                           INVESTMENTS        LIMITED   (bp)  to      Nusantara (BREN) is a subsidiary of the
                                           develop an LNG project involving a         Company engaged in the operation
                                           regasification terminal in the JIIPE       of power plants and other activities
                                           Industrial Estate in Gresik.               related to energy provision domiciled
                                                                                      in Gresik, East Java.


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     Membership In Associations
     [SEOJK C.5] [GRI 2-28]

     AKR is actively involved in various relevant industry associations, solidifying its position as a committed stakeholder in
     supporting the development of its business sector. Through this involvement, the Company actively participates in various
     forums, discussions, and joint initiatives with other stakeholders, achieved through collaboration with various industry
     associations and stakeholders, including:


                                        Name of Association                                                 Position

      Asosiasi Pengusaha Indonesia (APINDO)                                                                Member

      Kamar Dagang dan Industri Indonesia (KADIN)                                                          Member

      Asosiasi Emiten Indonesia (AEI)                                                                      Member

      Indonesia Corporate Secretary Association (ICSA)                                                     Member




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Highlights                                                          and Compliance




BOARD OF DIRECTORS’
MESSAGE
[SEOJK D.1] [GRI 2-22]




AKR has set a course that
will not only strengthen the
Company’s performance and
profitability, but also play a
central role in Indonesia’s
drive towards a low-carbon
economy and a more
inclusive future.



Haryanto Adikoesoemo
President Director




                                                                            www.akr.co.id
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     Dear Stakeholders,                                               PROGRESSING OUR BUSINESS
     Welcome to the PT AKR Corporindo Tbk (AKR) 2023
     Sustainability Report. This report is a testament to AKR’s       Achieving excellence is imperative not only for our success
     dedication and outlining the efforts we have made towards        but also for our capacity to contribute positively. In the
     a more resilient and better future. We are excited to            2023 financial year, AKR’s net profit climbed by 16% to
     share our progress with you, our valued stakeholders and         reach Rp 2,780 billion, a significant rise from the Rp 2,403
     readers, as AKR continues to “Progressing with Purpose”,         billion recorded in the previous year. Reflecting a robust
     building on our vision for a sustainable tomorrow.               Compound Annual Growth Rate (CAGR) of 31% over the
                                                                      last five years, our growth trajectory has been driven by
     In a world rebounding from the pandemic, organizations           trade, distribution, and logistics segment, with a notable
     are endeavoring to reinstate their operational vigor             enhancement from the Industrial Estate segment’s
     and performance metrics. The challenge of rallying               performance.
     performance in 2023 has been particularly formidable,
     as companies navigate the complexities of escalating             In addition, we believe that this year’s achievements are
     interest rates, surging inflation, and pervasive geo-political   a result of good communication and oversight from
     tensions. These elements have collectively impinged on           management. Communication is the key to success
     the intricacies of supply chains and the fluidity of capital     amidst a dynamic year like 2023. AKR conducts meetings
     movements.                                                       at various levels of management which allows us to analyze
                                                                      and make decisions quickly, allowing AKR to adapt to the
     Domestically, Indonesia’s government has endorsed                changing market conditions.
     policy normalization post-pandemic to foster economic
     growth and control inflation, showcasing resilience with         In 2023, AKR has diligently bolstered our investments in
     robust domestic demand and supply until Q3 2023. The             businesses that champion sustainability. These strategic
     impending elections will undoubtedly shape business and          investments encompass new and renewable energy,
     investment decisions, yet our investment sector has seen         LNG, biofuels, more efficient fleet operations, and the
     a 4.2% growth, buoyed by the government’s infrastructural        development of green industrial estates. We are leveraging
     initiatives and mineral downstreaming efforts.                   cutting-edge technology and Artificial Intelligence (AI) to
                                                                      optimize our operational planning and logistics routing.
     Amidst this situation, AKR continued to show strong              This innovation and commitment have enabled us to
     and stable growth. Thanks to a solid business model, we          maintain our total emission intensity at 0.02 tons of CO2 per
     were able to maintain solid performance. With a strategy         million of gross profit generated. This stability in emission
     that allows flexible adjustment of costs to customers, we        intensity, achieved despite increased business activities,
     ensured a healthy financial position. The combination of         fleet expansion, and a growing number of tenants in JIIPE.
     a robust business model and mature risk management
     results in consistent and reliable growth and performance.       In the Company’s effort to support the energy transition
                                                                      and expand the use of renewable energy mix, AKR actively
     STAYING ON THE ESG COURSE                                        participated in the government’s B30/B35 biodiesel
                                                                      program and initiated the use of solar panels. This year, we
     While many businesses are faced with uncertainty and             managed to increase the proportion of renewable energy
     may have to adopt a wait-and-see approach in executing           usage to 27% of the Company’s total energy consumption,
     transition strategies amid calls for climate action and          up from 23% in the previous year.
     ESG integration, AKR has set our course that will not only
     strengthen the Company’s performance and profitability,          In the green industrial estate business segment, AKR’s
     but also play a central role in Indonesia’s drive towards a      JIIPE Gresik Special Economic Zone is ranked first of the
     low-carbon economy and a more inclusive future.                  ten special economic zones in Indonesia thanks to the
                                                                      multiplier effect that has been created. Until the end of
     The objective of AKR’s ESG strategic direction is very clear.    2023, KEK JIIPE managed to attract investment of Rp71.5
     Not only do we want to do well, but we also want to make         trillion and provide jobs for 32,000 people who are now
     a good impact from our growth. This passion and purpose          work in companies in KEK JIIPE.
     is clearly reflected through the AKR Sustainability House
     “Progressing with Purpose” and its four main pillars: Our        PROGRESSING OUR PEOPLE
     Business Portfolio, Our People, Our Communities, and Our
     Conduct.                                                         AKR realizes that our achievements are inseparable
                                                                      from the performance of our people. For this reason, the
                                                                      Company continues to ensure the advancement, health
                                                                      and safety of our people. In 2023, we recorded zero fatalities
                                                                      and zero major safety incidents, including a cumulative
                                                                      total of safe trips from the land transportation fleet that
                                                                      reached more than 34.31 million kilometers.




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Sustainable          Company              Our Business          Our                 Our                  Our Conduct:
Performance          Profile              Portfolio             People              Communities          Governance, Ethics      37
Highlights                                                                                               and Compliance




To nurture the competence and professional growth of              PROGRESSING OUR CONDUCT
our employees, this year we invested more than Rp1.45
billion for training and development initiatives at the           For AKR, ethical conduct and compliance are not mere
holding company level, for both technical, targeted, and          obligations, but integral elements woven into the cultural
mandatory trainings.                                              fabric of the company. In line with this ethos, we are
                                                                  proud to report that AKR adheres to the highest ethical
AKR’s people development is aligned with our corporate            standards, as evidenced by zero incidents of corruption
values of entrepreneurship, collaboration, agility, reward        and no violations of laws and regulations in 2023. This
for performance, team empowerment and zero tolerance              exemplary behavior is also reflected in our commitment
for non-compliance. These values are continuously                 to transparent reporting, with the annual Sustainability
reinforced through communication tools such as                    Report published in accordance with POJK 51/2017, GRI
newsletters, performance reviews, and direct messages             Standard 2021 and SASB Standard.
from top management. We are committed to creating an
inclusive and equitable work environment where every              We also launched and refined several policies to
individual has equal opportunity, free from discrimination        strengthen our ESG governance this year, including
based on gender, ethnicity, race, or religion. The Company        those on health, safety, environment, human rights and
also put an emphasis on gender equality as we appoint             sustainable sourcing. These policies are reinforced by our
women in leadership and managerial positions. As a result,        newly revised Code of Ethics and Conduct, which responds
by the end of 2023 AKR has reached 24% female in middle           to the changing dynamics of the business world. These
to senior management.                                             policies is a critical tool to reinforce each AKR employee’s
                                                                  commitment to behave in a manner consistent with the
In recognition of our efforts, AKR was awarded the Human          company’s values and to incorporate these principles into
Capital on Resilience Excellence Award 2023 (HCREA)               their daily activities.
by First Indonesia Magazine. This award recognizes our
commitment to developing agile human talent capable               GUIDING PROGRESS
of adapting to the changing business environment. The
Board of Directors and Commissioners aspires that our             The Board of Director would also like to highlight the
efforts in human capital development and managing a               Company’s ESG Committee and ESG Task Force which
healthy work environment will maximize the potential of           have done an excellent job to ensure AKR’s sustainability
everyone, both professionally and personally.                     strategy being executed. In addition, AKR consistently
                                                                  opens dialogue with various stakeholders to receive
PROGRESSING OUR COMMUNITIES                                       feedback on how the Company can integrate ESG even
                                                                  further in our business operations.
Echoing the wisdom of a Chinese proverb, “A good neighbor
is a found treasure,” AKR has thrived for 63 years amidst the     We will continue to engage our stakeholders to guide our
graciousness of supportive communities. AKR has pledge            progress with purpose. AKR looks forward for collaboration
from day one to be a good neighbor for our communities            with various internal and external stakeholders to achieve
through various approach and engagements.                         shared goals which benefits the economy, environment,
                                                                  people, and society.
In 2023, our commitment to corporate social responsibility
(CSR) was evident in the realization of more than Rp24            As the Company moves forward, we have formulated our
billion for various community development programs,               ESG aspirations. These aspirations are outlined in AKR
an increase of 6% from the Rp 22.85 billion spent in the          Horizon 2023. Moving forward this framework will be the
previous year.                                                    compass that directs AKR’s ESG efforts and initiatives
                                                                  towards positive, measurable and impactful sustainability
But our commitment goes beyond CSR. We believe                    performance.
in growing with our local communities, which is
why a significant number of our employees are local
communities. This year, 84% of our parent company’s
employees were hired locally.

We are also committed to supporting local business. In
2023, the local content in our biodiesel sourcing (Tingkat
Kandungan Dalam Negeri – TKDN) of over 40%. In parallel,
AKR ensures that the local procurement of goods for
each project meets a minimum local content threshold
of 30%, thereby promoting community development and
sustainability.




                                                                                                                 www.akr.co.id
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38




     CLOSING REMARKS

     Thank you to all members of the AKR family: employees, customers, partners and shareholders. Your support and
     contributions are the foundation of all our achievements and progress. Our deepest appreciation for your trust and
     support that continues to drive us forward.

     Moving forward, AKR is committed to continuous innovation and growth while being mindful of our responsibility to
     society and the planet.

     All of our efforts are made with one goal in mind: to explore new opportunities, achieve higher returns, and create a better
     and more sustainable future for us all.




                                                        Jakarta, 5 April 2024
                                                         Atas Nama Direksi




                                                   Haryanto Adikoesoemo
                                                         President Director




       Sustainability Report 2023
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Sustainable         Company   Our Business       Our            Our              Our Conduct:
Performance         Profile   Portfolio          People         Communities      Governance, Ethics      39
Highlights                                                                       and Compliance




BOARD
OF COMMISSIONERS




               Fauzi Ichsan            Soegiarto Adikoesoemo              Sofyan A. Djalil
              Commissioner             President Commissioner         Commissioner Independent




                                                                                         www.akr.co.id
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40




     BOARD
     OF DIRECTORS




           Suresh Vembu           Haryanto Adikoesoemo   Bambang Soetiono   Termurti Tiban
              Director              President Director      Soedijanto         Director
                                                             Director


     Sustainability Report 2023
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Sustainable       Company   Our Business        Our       Our               Our Conduct:
Performance       Profile   Portfolio           People    Communities       Governance, Ethics      41
Highlights                                                                  and Compliance




              Nery Polim                   Jimmy Tandyo                 Mery Sofi
               Director                       Director                  Director




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42




     RESPONSIBILITY STATEMENT OF THE
     BOARD OF COMMISSIONERS FOR
     THE SUSTAINABILITY REPORT 2023
     OF PT AKR CORPORINDO TBK
     [SEOJK E.1][GRI 2-14]



     We, the undersigned, certify that the Sustainability Report of PT AKR Corporindo Tbk for the 2023 financial year has been
     prepared with reference to the Indonesia Financial Services Authority Regulation number 51/POJK.03/2017 regarding the
     Implementation of Sustainable Finance for Financial Services Institutions, Issuers and Public Companies, and Circular
     Letter of the Indonesia Financial Services Authority number 16/SEOJK.04/2021 concerning the Form and contents of
     Annual Reports of Issuers or Public Companies.

     All information in this Report has been prepared and presented in accordance to these regulations and we are fully
     responsible for the accuracy of the contents of the Company’s Sustainability Report.


                                                       Jakarta, 5 April 2024
                                                  BOARD OF COMMISSIONERS




                                                     Soegiarto Adikoesoemo
                                                     President Commissioner




                               Sofyan A. Djalil                                         Fauzi Ichsan
                               Commissioner                                       Independent Commissioner




       Sustainability Report 2023
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Sustainable         Company             Our Business             Our            Our                 Our Conduct:
Performance         Profile             Portfolio                People         Communities         Governance, Ethics      43
Highlights                                                                                          and Compliance




RESPONSIBILITY STATEMENT OF THE
BOARD OF DIRECTORS FOR
THE SUSTAINABILITY REPORT 2023
OF PT AKR CORPORINDO TBK
[SEOJK E.1][GRI 2-14]



We, the undersigned, certify that the Sustainability Report of PT AKR Corporindo Tbk for the 2023 financial year has been
prepared with reference to the Indonesia Financial Services Authority Regulation number 51/POJK.03/2017 regarding the
Implementation of Sustainable Finance for Financial Services Institutions, Issuers and Public Companies, and Circular
Letter of the Indonesia Financial Services Authority number 16/SEOJK.04/2021 concerning the Form and contents of
Annual Reports of Issuers or Public Companies.

All information in this Report has been prepared and presented in accordance to these regulations and we are fully
responsible for the accuracy of the contents of the Company’s Sustainability Report.


                                                       Jakarta, 5 April 2024
                                                 BOARD OF DIRECTORS




                                                 Haryanto Adikoesoemo
                                                   President Director




              Jimmy Tandyo                   Bambang Soetiono Soedijanto                        Mery Sofi
                 Director                             Director                                  Director




              Suresh Vembu                                 Nery Polim                         Termurti Tiban
                 Director                                   Director                             Director




                                                                                                            www.akr.co.id
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44




           Implementation of the Environment, Social, and Governance (ESG)
           principles in AKR’s sustainability strategy is reflected through a balance
           between business success and the management of the environment,
           social responsibility, and good governance. The Company is committed to
           providing sustainable value and maximum benefits for all stakeholders.



     SUSTAINABILITY
     STRATEGY
     Sustainability Commitment                                       The key to addressing this challenge is to go beyond
     [SEOJK A.1] [SEOJK E.5] [GRI 2-22]                              business as usual. As a global corporate citizen, AKR must
                                                                     maximize efforts to achieve a balance between business
     AKR understands that every business activity it conducts        growth, awareness of the environment, and the progress
     must have ethical responsibility and be based on                of the surrounding community. This is a common goal
     applicable regulations. Therefore, sustainable business         with the global community, outlined in the Sustainable
     development must begin by creating a balance between            Development Goals (SDGs), and Sustainable Development
     the needs of shareholders, the needs of the community,          is the agenda of the Indonesian government.
     and environmental needs around operational areas. On
     the journey towards sustainability, AKR constantly strives      As a company operating in the energy supply chain
     to build a strong foundation of ethical behavior in every       industry in Indonesia, AKR has mapped SDG targets that
     activity, both in production and operations.                    align with each business activity. Being a sustainable
                                                                     company is a commitment that must always be fought
     As envisioned in the Company’s Mission, AKR has a noble         for and realized through strong spirit and optimism for the
     purpose; to provide maximum added value and benefits to         future.
     stakeholders. This Mission forms the spirit and identity that
     is carried in building economic, social, and environmental
     performance for the sake of sustainable business                Embedding Sustainability Across AKR’s
     continuity.                                                     Business Lines
                                                                     [GRI 2-23][GRI 2-24]
     For AKR, the commitment to sustainability is an ambition
     that can only be achieved through a measured and directed       As a concrete effort to achieve sustainability, the Company
     long-term strategy. AKR must ensure that the business           has created a committee responsible for overseeing the
     activities it manages will have a sustainable impact on         formulation and implementation of matters related to
     stakeholders now and in the future. The challenge for AKR       economic, environmental, and social performance, namely
     is setting the right goals, plans, ambitions, and targets       the ESG Committee and ESG Task Force AKR. Broadly
     in every business line, from logistics and distribution to      speaking, the ESG Committee and ESG Task Force AKR
     industrial areas and the development and management             ensure the formulation of sustainability strategy policies
     of Special Economic Zones (SEZ).                                to support the implementation of ESG in accordance with
                                                                     applicable industry standards.




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Performance                          Profile                      Portfolio                  People                   Communities             Governance, Ethics       45
Highlights                                                                                                                                    and Compliance




To achieve this, the ESG Committee and ESG Task Force AKR have formulated AKR Sustainability House: PROGRESSING
WITH PURPOSE, which includes 4 main pillars, namely:



                                                                          PROGRESSING WITH PURPOSE
  Umbrella Sustainability




                                   As a strategic holding company, AKR Corporindo aims to growing and progressing
     Statement And
      Elevator Pitch
      Commitment




                               sustainably, our business portfolio spans from logistics and distribution, industrial estate,
                                to the development and management of special economic zone. Through our business
                                 we touch millions of people and stakeholders. Therefore, we must do what we do in a
                               sense that can benefit the economy, environment, people and society. This means we go
                               beyond business-as-usual to balancing ambition with wisdom, and business success with
                              environment consciousness, and social progress. For us, this is the meaning of sustainability
                                                              – Progressing with Purpose.
           Pillars




                                   Our Business                               Our                            Our                                 Our
                                     Portfolio                               People                       Communities                          Conduct
           SDGs




                                Building strong, robust and          Nurturing, developing, and       Giving back to the communities     Operating responsibly and
    Rationale
     of the




                                resilient business portfolio to    safeguarding our people as our          wherever we operates          upholding ethical behaviour
      pillar




                              support the evolving need of our          most valuable assets.                                              and legal compliance in
                                customers and stakeholders                                                                                  everything that we do



                              1. Robust & Resilient Business       1. Labor & Employment              1. Community relations &         1. Good Corporate Governance
       Strategic Priorities




                                Model                                Practice                           development programs           2. Business Ethics
          Action Areas/




                              2. Strong financial                  2. Health & Safety                 2. Involving Local Suppliers     3. Compliance to Law and
                                Fundamentals                       3. Employee Engagement,            3. Providing opportunities for     Regulations
                              3. Operational Excellence &            Diversity & Inclusion              the local communities
                                Utilization of Technology          4. Learning & Development
                              4. Customer Engagement &
                                Satisfaction
                              5. Management of
                                Environmental Footprints




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                                          What We Want To Achieve                              Where We Are Now
     Pillar                                                                                    (2023 Achievement)
                                            (AKR Horizon 2030)                                       [SEOJK F.1]


                                                                                AKR invested in sustainability-related projects,
                               Focusing on Investment and portfolio that are
                                                                                such as LNG, biofuels, rooftop solar panel,
                               in support of sustainability and transition to                                                      On track
                                                                                floating solar panel, and green industrial
                               low-carbon economy
                                                                                estate.
      OUR BUSINESS PORTFOLIO




                                                                                Adoption of digital real-time control tower and
                               Adopt digital technology to support
                                                                                embedding Artificial Intelligence to better plan
                               operational effectiveness, efficiency, and                                                          On Track
                                                                                our operations and reduce carbon emission for
                               reduction of carbon emission
                                                                                AKR’s logistic operation.

                               Increase renewable energy mix used on AKR        27% renewable energy usage from the total
                                                                                                                                   On Track
                               operations to 30% by 2030                        energy consumption

                               Zero significant spill at all operations         Zero significant spill at all operations           Achieved

                               Maintain carbon emission intensity at 0.02       0.02 tonCO2e/million Gross Profit emission
                                                                                                                                   Achieved
                               tonCO2e/million Gross Profit                     intensity

                               Zero fatalities at all AKR’s operations          Zero fatalities at all AKR’s operations            Achieved

                               Zero major safety incident at all AKR’s          Zero major safety incident at all AKR’s
                                                                                                                                   Achieved
                               operations                                       operations
      OUR PEOPLE




                                                                                • Published and socialized group-wide Human
                               Zero Human Rights incidents in the workplace       Rights Policy in 2023                            Achieved
                                                                                • Zero human rights incident in 2023

                               Creating an inclusive workplace through
                                                                                24% middle-up management positions in AKR
                               achieving 30% middle-up management                                                                  On Track
                                                                                are held by women
                               position held by women.

                                                                                • 84% local recruits in AKR Holding
                               Providing jobs for the local communities         • 32.000 total local workforce employed by         Achieved
      OUR COMMUNITIES




                                                                                  factories in KEK JIIPE

                               Making a positive impact for the local
                                                                                43.31% TKDN in 2023                                Achieved
                               economy through our procurement practice

                                                                                100% AKR’s subsidiaries carried out community
                               Contribute to local socio-economic
                                                                                development programsRp24+ billion
                               development through social community                                                                Achieved
                                                                                channeled for community development
                               programs and outreach at all AKR operations
                                                                                programs in 2023

                               Maintain zero corruption incident                Zero corruption incident in 2023                   Achieved
      OUR CONDUCT




                               Communicating our ESG progress
                                                                                Publish annual sustainability report using
                               transparently through Sustainability Reporting
                                                                                POJK 51/2017, GRI Standard 2021, and SASB          Achieved
                               and ensure our reporting practice is aligned
                                                                                standard
                               with national and international standard

                               Ensuring adherence and compliance to law &
                                                                                Zero breach of law and regulation in 2023          Achieved
                               regulation
      Sustainability Report 2023
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Sustainable          Company               Our Business           Our                 Our                  Our Conduct:
Performance          Profile               Portfolio              People              Communities          Governance, Ethics       47
Highlights                                                                                                 and Compliance




Our Business Portfolio                                              the Company’s success. This is demonstrated through an
[GRI 3-2][GRI 3-3][GRI 2-25]                                        OHS management system, providing training, working
                                                                    towards achieving zero fatalities across subsidiaries, and
As a logistics and supply chain service provider, the level         providing healthcare facilities.
of stakeholder trust and satisfaction, including customers,
significantly influences the sustainability of the Company’s        Considering the dynamics and challenges of an
operations. Therefore, in addition to facilitating the trade of     increasingly competitive business environment, AKR
essential and critical products for the industry, AKR strives       regularly conducts employee training and development to
to provide the best service, foster two-way communication,          enhance the potential and quality of its workforce. All AKR
and create harmonious relationships with all stakeholders.          employees are given equal opportunities to participate in
This is a manifestation of the Company’s commitment to              training and development programs, creating a fair and
building a strong and resilient business portfolio.                 inclusive working environment.

To build a robust business model and create a strong                Our Communities
financial foundation, AKR recognizes that changes and               [GRI 3-2][GRI 3-3][GRI 2-25]
adaptations are always needed amid the challenges
and complexities. To continue sustainable growth, the               In conducting business, AKR is not only committed to
Company has undertaken several efforts, such as:                    realizing positive economic performance but also to
• Building operational excellence through technology.               providing broad benefits to the surrounding community,
• Adapting and meeting the evolving needs of customers              primarily in improving their welfare. Therefore, AKR provides
   and stakeholders. This includes not only facilitating the        job opportunities for people in surrounding operational
   logistics supply chain for essential products but also           areas, including entrusting them with positions in senior
   supporting manufacturing growth through the JIIPE                management. Additionally, The Company uses services
   Special Economic Zone.                                           and materials purchased from local suppliers, contributing
                                                                    to the increase in Domestic Component Levels (TKDN).
AKR’s current orientation is focused on ensuring that
the Company adds value to stakeholders. This involves               AKR seeks to implement various CSR programs that can
meeting the needs of industrial customers, acting as an             provide tangible benefits to the surrounding community.
extension of suppliers, conducting business in accordance           In the planning process, the Company first identifies
with regulations, and providing profits and benefits to             needs through two-way communication with the
shareholders and employees.                                         community to ensure that the implemented programs
                                                                    are targeted, sustainable, and effective. To maximize the
In addition, to build a strong and resilient business               performance of AKR’s CSR, continuous innovation brings
portfolio, environmental aspects are equally important.             new breakthroughs in the programs.
In practice, AKR endeavours to ensure that operational
activities have no negative impacts or risks to activities and      Our Conduct
the lives of the local community. Therefore, the Company            [GRI 3-2][GRI 3-3][GRI 2-25]
has developed strategies and initiated efforts to transition
to clean and environmentally friendly energy, creating a            Realizing AKR’s sustainability values begins with
pollution-free, noise-free work environment, minimizing             a commitment to strengthening Good Corporate
the risk of fire, and actively participating in addressing the      Governance       (GCG).   Principles    of   transparency,
impacts of climate change.                                          accountability, responsibility, independence, and fairness
                                                                    are prioritized and serve as the main foundation for work
Our People                                                          across all business units. Openness is emphasized in
[GRI 3-2][GRI 3-3][GRI 2-25]                                        decision-making processes and provides relevant material
                                                                    information.
AKR acknowledges that in embarking on the long journey
towards sustainability, employees are the most important            AKR upholds ethical behavior and legal compliance
factor that will determine the success or failure of the            in all activities. Therefore, the clarity of the function,
Company in achieving set values. Targets and objectives             implementation, and accountability of Company organs
can only be maximized when supported by competent                   is in accordance with the regulations in Indonesia. To
and quality Human Resources (HR). Therefore, AKR is                 ensure various ESG initiatives, the ESG Committee has
committed to protecting labor practices through anti-               been formed, which is responsible for determining the
forced labor policies, ensuring freedom of association,             Company’s ESG strategy, providing recommendations,
and adhering to values and practices of diversity, gender           coordinating, reporting, and monitoring.
equality, human rights, and labor rights.
                                                                    AKR is committed not only to treating business ethics and
AKR also works to create a safe, healthy, and comfortable           compliance as obligations but also to making them part
working environment by applying the highest standards in            of the habits and culture of all Company stakeholders.
Occupational Health and Safety (OHS). This commitment               Therefore, business ethics and compliance have become
has the ultimate goal of achieving zero accidents. AKR              guidelines for behavior and references for all employees in
aims to create a safety culture across operational areas,           sustainably applying the Company’s values.
which, in turn, can improve productivity, performance, and



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     Stakeholder Engagement                                                Engagement methods are adjusted to the characteristics
     [SEOJK E.4] [GRI 2-29]                                                of each stakeholder, considering local wisdom in each
                                                                           operational area of AKR. The Company engages in two-
     Stakeholders play a crucial role and contribute significantly         way communication by listening to the aspirations, needs,
     in achieving shared goals, namely creating sustainable                suggestions, and criticisms of stakeholders. Based on
     value. AKR has identified and implemented several                     these methods, identified stakeholders include:
     stakeholder engagement methods that influence and are
     influenced by the Company.

                          Inclusive Principles              Material Principles                 Responsive Principles
                                                               Outcome,
       No.       Stakeholder          Identification           Topic, and
                                                                                   Level, Methods, and Frequency of Engagement
                   Groups                 Basis             Engagement and
                                                             Communication

        1       Shareholders        Topic of            Level, Methods,           Providing information and engagement.
                                    Engagement          and Frequency of          • Regular publications (annual reports, quarterly
                                    and                 Engagement                  financial reports, quarterly exploration reports)
                                    Communication                                   and website.
                                    Results                                       • Multi-stakeholder forums, holding Annual
                                                                                    General Meetings (RUPS), at least once a year.

        2       Employees           D, R, T, I, P       1. Occupational           Providing Information, Consultation,
                                                           Health                 Negotiation, and Engagement
                                                           and Safety             • Corporate newsletters, business unit bulletins,
                                                           Performance              communication through email, intranet,
                                                        2. Employee                 website, social media, instant messaging.
                                                           Welfare                • Employee engagement surveys, covering
                                                                                    culture, satisfaction, perception, understanding
                                                                                    of the Collective Labor Agreement, etc.
                                                                                  • Formulation and ratification of the Collective
                                                                                    Labor Agreement for a period of 2 (two) years
                                                                                    and its implementing regulations, which
                                                                                    include provisions related to the rights and
                                                                                    obligations of the Company and all employees in
                                                                                    accordance with their respective employment
                                                                                    relationships.
                                                                                  • Bipartite Work Agreement (LKS) and Quarterly
                                                                                    Meetings between AKR and labor unions.

        3       Government          D, R, T, I, DP, P   •    Empowering           Fostering relations with stakeholders
                                                             the community        • Providing input to the government on various
                                                             through CSR            policies and regulations
                                                             programs             • Regular reporting (Environmental Impact
                                                        •    Payment of taxes       Assessment, RKTTL, Post-Mining Plan, quarterly
                                                             and obligations        reports to the OJK, etc.) and website updates
                                                             to the State         • Consultations with ministries/agencies and
                                                                                    offices, public consultation
                                                                                  • Development         Planning      Deliberations
                                                                                    (Musrenbang) with local government; Tax
                                                                                    payments, Non-Tax State Revenue (PNBP), and
                                                                                    other obligations to the State

        4       Suppliers           D, R, T, P          •    Transparency in      Providing Information and Collaboration
                                                             the procurement      • Conducting regular open and transparent
                                                             of goods and           contract work offers (tenders); contract
                                                             services               documents containing compliance with
                                                        •    Economic,              the law, including aspects of human rights,
                                                             social, and            occupational health and safety, and the
                                                             environmental          environment.
                                                             performance




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Sustainable           Company                   Our Business           Our                  Our                 Our Conduct:
Performance           Profile                   Portfolio              People               Communities         Governance, Ethics      49
Highlights                                                                                                      and Compliance




                   Inclusive Principles                   Material Principles                  Responsive Principles
                                                             Outcome,
  No.         Stakeholder       Identification               Topic, and
                                                                                  Level, Methods, and Frequency of Engagement
                Groups              Basis                 Engagement and
                                                          Communication

   5      Consumers         D, R, I, P                Product Quality and       Providing Information and Consultation
                                                      Services                  • Making commercial contracts for product
                                                                                  sales with guaranteed product quality, supply
                                                                                  continuity, and delivery accuracy, conducted
                                                                                  according to needs
                                                                                • Regular meetings with customers and
                                                                                  customer satisfaction surveys at least once a
                                                                                  year

   6      Community         D, R, T, I, DP, P         •    Socialization and    Providing Information, Transactions,
                                                           disbursement         Consultations, Negotiations, Engagement,
                                                           of CSR/TJSL          Collaboration, and Empowerment
                                                           Program funds        • Socialization    of    Environmental    Impact
                                                      •    Community              Assessment      (AMDAL);     regular   meetings
                                                           mentoring and          with the local community; reports; CSR/TJSL
                                                           empowerment            Implementation website
                                                      •    Management           • Receiving input from the community in the
                                                           of economic,           AMDAL process;
                                                           social, and          • Involvement of the community in the
                                                           environmental          planning, implementation, and monitoring
                                                           impacts                and evaluation of CSR/TJSL and community
                                                                                  development
                                                                                • Collaboration in various multi-stakeholder
                                                                                  initiatives   with    the   local    community,
                                                                                  universities, local governments, partnerships
                                                                                  with various institutions


Explanation: Identification method based on the AA1000,                  •   Diverse Perspective (DP): An individual or an
2018 Stakeholder Engagement Process:                                         organization has an influence on AKR or the strategy or
• Dependency (D): AKR has dependencies on an                                 policies of other stakeholders.
   individual or an organization, or vice versa.                         •   Proximity (P): An individual or an organization has
• Responsibility (R): AKR has legal, commercial, or ethical                  geographical and operational closeness to AKR.
   responsibilities towards an individual or an organization.            •   Influence (I): An individual or an organization has an
• Tension (T): An individual or an organization has an                       influence on AKR or the strategy or policies of other
   influence on AKR regarding specific economic, social,                     stakeholders.
   or environmental issues.




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     Strategic Sustainability Priorities and SDGs Mapping | SDGs Compass

     The ESG Committee and ESG Task Force at AKR have established targets within the four main pillars to support the
     achievement of the 17 Sustainable Development Goals (SDGs) that align with all business activities of the Company. With
     this mapping of SDGs, it is hoped that the Company can provide significant benefits and advantages to stakeholders,
     including the community and the environment. What follows is an explanation of the targets for AKR’s sustainability
     pillars and the achievement of SDGs:
     [GRI 2-22] [GRI 3-2][GRI 3-3]

      AKR’s Sustainability Pillars                                           SDG Goals

      Our business portfolio         •   Engaging in climate change anticipation strategies through mandatory biodiesel as
                                         a transitional energy and reducing industrial emissions through Special Economic
                                         Zones.
                                     •   Promoting the development of technology to achieve operational excellence in
                                         biodiesel distribution.
                                     •   Investing in infrastructure through various projects, including the Java Integrated and
                                         Industrial Port Estate (JIIPE) Special Economic Zone project, to drive inclusive and
                                         sustainable industrialization, increase job creation and gross domestic product, and
                                         foster industrial growth.
                                     •   Providing access to cleaner and/or renewable energy to industries through JIIPE
                                         Special Economic Zone.
                                     •   Establishing partnerships to provide access to low-emission fuels to the public through
                                         bp AKR stations.

      Our people                     •   Ensuring workplace safety and health and supporting employee welfare.
                                     •   Ensuring that employees receive inclusive and quality training and education.
                                     •   Promoting gender equality throughout the company’s work environment.
                                     •   Supporting inclusive and sustainable economic growth in the workplace.




      Our communities                •   Reducing poverty through various social responsibility programs and community
                                         empowerment in the surrounding operational areas.
                                     •   Ensuring a healthy life and supporting the well-being of the surrounding communities.
                                     •   Ensuring inclusive and quality education for the surrounding communities.
                                     •   Promoting gender equality principles.
                                     •   Supporting inclusive and sustainable economic growth for the self-reliance and well-
                                         being of the surrounding communities.

      Our conduct                    •   Supporting a peaceful and inclusive community for sustainable development.
                                     •   Strengthening the implementation measures and revitalizing global partnerships for
                                         sustainable development.




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Page 53
03
     Our
Business
Portfolio

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           Through a balanced business portfolio that focuses on innovation
           and sustainability, AKR strives to create positive economic, social, and
           environmental impacts for stakeholders.


     AKR believes a strong and robust business portfolio will provide benefits when linked with sustainable operational
     activities. The Company enhances and maintains the balance of its portfolio to realize its vision of becoming a leading
     player in logistics services and procurement solutions for chemicals and energy in Indonesia.




     A STRONG AND ROBUST
     BUSINESS PORTFOLIO
     AKR understands that a portfolio requires consistent              With a robust and diverse business portfolio, supply chain
     management when building a sustainable business                   resilience, business continuity planning, technology
     foundation. Therefore, the Company constantly adapts              adoption, and commitment to sustainability, AKR believes
     and innovates to address challenges with strategic plans          it can achieve sustainable business success.
     that enable maintenance of a good performance, while
     also creating sustainable value-added business that
     benefits all parties involved.



     AKR Business Transformation
     AKR began its business journey in Surabaya in the 1960s in        In 2013, together with Pelindo, AKR began development of
     basic chemical trading. The Company continued to grow,            the Java Integrated Industrial and Ports Estate (JIIPE), an
     expanding from logistics and trading to distribution and          industrial zone integrated with a deep-sea port in Gresik,
     industrial zones (which later became Special Economic             East Java. Currently, JIIPE has been designated a National
     Zones (SEZs)). AKR is now not only a leading logistics and        Strategic Project, and inaugurated as a Special Economic
     supply chain service provider for fuel and basic chemicals        Zone (SEZ) for the Technology and Manufacturing sectors.
     but also the manager of the JIIPE Special Economic Zone           In 2017, the company initiated further development in the
     in Gresik.                                                        retail fuel market with British Petroleum (bp), forming a
                                                                       joint venture to serve the large demand for premium
     Since its inception, AKR has grown, adapted, and                  quality fuel in Indonesia.
     transformed in line with market developments, aiming
     to strengthen competitiveness through its potential               Along with this transformation, AKR adjusted its workflow
     and management of competitive advantages. From                    and human resources, and continued to enhance
     its beginnings trading basic chemicals, in 2005 AKR               information technology, focusing on domestic business
     became the first national private company entrusted with          development by divesting some of its port subsidiaries
     distributing non-subsidized fuel. Five years later, it was also   in China and reinvesting in Indonesia. As a result, the
     the first to distribute subsidized fuel and was permitted         company has shown increasingly improved performance
     to open and operate Fuel Filling Stations (SPBKB) and             over the past 5 years, with a 31% CAGR. This success
     Fishermen’s Fuel Filling Stations (SPBN).                         was achieved through portfolio consolidation, logistic
                                                                       infrastructure expansion, strategic partnerships with bp,
                                                                       and developing recurring revenue from JIIPE.




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The company is now moving to cleaner and renewable                regasification. Previously, 2 companies were established to
energy, establishing a JV, PT Berkah Buana Energi, with PT        operate in Gresik; PT.Anugerah Kreasi Pratama Indonesia
Bayu Buana Gemilang in 2021 to distribute natural gas to          (AKPI) for warehousing and storage, and PT.Berkah
the JIIPE SEZ and its surrounding areas.                          Bunker Service (BBS) for maritime port services. In early
                                                                  2024, PT. Berkah Renewable Energi Nusantara (BREN)
In 2022, the Company began adding energy reserves to              was established to operate Power Plants in Gresik. Moving
JIIPE from solar power, with a capacity to be developed           forward, the Company will continue to maintain diversified
gradually. In 2023, AKR took several initiatives to enhance       composition, committed to providing sustainable value
industrial facilities in JIIPE, including the signing of a        for all stakeholders through the facilitation of trade
Joint Development Agreement with BP Gas & Power                   and commerce via supply chain logistics and driving
Investments Limited to develop an LNG project involving           competitive industrial development in Indonesia,.




The business portfolio of AKR has been transformed in line with the evolving
needs of industry and energy for society




                                                                                            AKRA Logistic Supply Chain
          bp AKR Petro Station               Jakarta Tank terminal AKR-Vopak
                                                                                                  Infrastructure

Offer high quality fuel and non fuel
product service
                                         Largest Private Tank Terminal in
                                         Tanjung Priok, Jakarta
                                                                                      819.400       KL
                                                                                      Total capacity Tank Terminal


                                                                                      50.000    Sq.M
                                                                                      Warehouse Capacity


                                                                                      229   Units        14 Units
                                                                                      Tanker Trucks      Tanker Ships,
                                                                                                         SPOBs, & Barges

              AKR Petrol Station                       Air bp AKR Aviation


Selling subsidized fuel including        IMIP Airport & Cibubur Heliport
for fisherman




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                                                             Business Model
                                    Efficient Logistics Solutions to Support Industries in Indonesia

                       Logistics and Supply Chain                                    Integrated Industrial Zone
                                                                                           Deep Sea Port

                                                                                              Land Sales
          Basic Chemicals                      Petroleum

                                                                                            Industrial Zone

               industry                          Industry                                 Recurring Revenue

                                                                                                                    Clean &
                                                                            Ports               Utilities          Renewable
                                        Subsidized         Retail                                                    Energy




                                             Economic Impact on AKR’s Supply Chain
                                    Contributes to Driving Various Industrial Sectors in Indonesia


                                                                      Chemical Client Sectors / Petroleum Client Sectors
                                                                      Mineral Mining
                                                                      Marine Bunker
         Refinery as petroleum
                                                                      Plantations
                supplier                                              Manufacture
                                                                      Retail
                                                                      Rayon & Textile
                                                                      Smelter
        Chemical Manufacturer              Storage Tanks
                                                                      Chemical
         as chemical supplier                                         Food Industry
                                                                      Personal & Homecare Products




     Climate Transition and Adaptation Strategies in Our
     Business
     [SEOJK F.3][GRI 201-2]


     Climate change is a global challenge, potentially affecting      Through this pillar, the Company focuses on exploring new
     business activities if not properly mitigated. This includes     business opportunities while improving environmental
     disruptions to the supply chain, increased operational           sustainability across AKR’s business portfolio. These efforts
     costs, and risks related to extreme weather events.              are based on principles of sustainability, responsible
                                                                      operations, and environmental conservation, ensuring that
     In addressing this challenge, AKR has developed a                AKR is not only prepared to face current climate challenges
     comprehensive sustainability strategy, embodied in the           but also contributes to a more sustainable future.
     pillar of Our Business Portfolio.




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In general, AKR’s climate change approach can be described as follows:




              Sustainable Development and Strengthening of Business Portfolio

              This initiative encompasses sustainable improvement across all business sectors, exploring new
              opportunities, and diversifying AKR’s business portfolio to support the global transition towards a low-
              carbon economy with climate change focus, which includes 5 strategic initiatives:
              1.   Strengthening competitive advantages and business model discipline in the logistics supply chain.
              2.   Increasing logistics capacity to Eastern Indonesia.
              3.   Development and marketing for the Green Industrial Estate SEZ JIIPE Gresik.
              4.   Enhancing a network of high-quality, environmentally friendly fuel filling stations.
              5.   Partnering with the Indonesian government in transitioning to clean energy, including new investments in the
                   renewable energy sector, namely solar panels, and Liquified Natural Gas (LNG).



              Exploration of Alternative Energy Sources to Drive Efficiency

              AKR supports the government’s energy transition program through the biodiesel program and carefully
              analyzes the adoption of alternative energy sources such as gas and solar panels. The Company strengthens
              the distribution of biofuel as an alternative energy source nationwide and analyzes the development of the
              EV ecosystem and the future clean technology industry.

              AKR views environmentally friendly technology as an alternative to reducing emissions and costs.
              Investments in alternative energy development are made considering proper cost-benefit analyses.


              Utilizing Technology for Operational Optimization and Environmental Footprint
              Mitigation

              Through cutting-edge technology, including Artificial Intelligence (AI), AKR continues to strive for
              operational and logistic efficiency improvements that are not only aimed at optimizing fuel usage but also
              ensuring workplace safety and emission intensity management. Operational optimization initiatives with
              IT monitoring ensure more timely deliveries and maintain optimal emission intensity and energy usage,
              supporting efforts to achieve environmentally friendly operations.



              Infrastructure Resilience and Operational Robustness against Climate Change
              Risks

              AKR’s logistics infrastructure incorporates aspects of safety, environmental protection, and anticipation
              of climate change risks resulting from extreme weather events, including floods and natural disasters.
              Climate risk assessments are conducted with infrastructure planning to detect and anticipate weather
              fluctuations that could affect delivery schedules, routes, and safety.

              AKR has adopted a resilient infrastructure approach in the design of JIIPE, capable of addressing risks
              such as flash floods and sea-level rise, as well as strengthening and adjusting dock heights as needed.
              This proactive step not only reaffirms the commitment to sustainability and operational resilience amidst
              climate challenges but also reinforces social responsibility by ensuring smooth and safe operations. Through
              this strategy, AKR aims to minimize the impacts of climate change and ensure business sustainability that
              is adaptive and responsive to future climate projections.




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                     Water Management

                     Water is vital in maintaining AKR’s business and operations, considering that climate change often
                     increases the risk of drought and water scarcity. Therefore, AKR implements comprehensive water resource
                     management to ensure stable water availability. Practices such as rainwater harvesting and water recycling
                     are part of this initiative, emphasizing the reduction of freshwater usage and increasing efficiency.

                     One form of AKR’s commitment can be seen in the zero-water runoff design at JIIPE, where all rainwater
                     and surface water are utilized and reused. This not only secures water for operational needs but also
                     demonstrates responsibility towards sustainable water management, reducing the impact of operations
                     on the local hydrological cycle, and reducing the likelihood of water conflict in operationally linked
                     communities.




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     REALIZING ESG PRINCIPLES IN THE
     DEVELOPMENT OF THE EAST JAVA
     INDUSTRIAL ZONE SEZ JIIPE
     [OJK F.26]



     With its commitment to sustainability, AKR embodies               JIIPE is not only an efficient and modern industrial zone
     the principles of ESG in the development of JIIPE, aiming         but also a space that supports sustainable, natural, and
     to be a pioneer in their implementation. This initiative is       social ecosystems, representing a strategic step towards
     reflected in JIIPE’s efforts to integrate environmentally         a green economy, and marking a new era in an industry
     friendly principles into all aspects of operations and            that prioritizes harmony between economic growth and
     infrastructure development.                                       environmental sustainability.



         MULTIPLIER EFFECT

     •    Regional and national economic growth
     •    Increased direct and indirect employment
     •    The presence of anchor tenants impacts the growth of downstream ecosystems
     •    The presence of integrated industrial zones (industrial zone and port in one location) leads to
          significant reduction in logistic costs
     •    Enhanced competitiveness of industries on the global stage




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    ENVIROMENTAL


                 High-Tech Waste Treatment System Technology
                 [GRI 306-2]

                 The wastewater treatment system at JIIPE has implemented advanced technology to optimize waste processing
                 without causing negative impacts on the surrounding environment. One of the flagship facilities at the East Java
                 Industrial Zone JIIPE is the Wastewater Treatment Plant (WTP). The WTP functions to treat production waste in the
                 JIIPE area. The Wastewater Treatment Plant has a capacity of 2,500 m3/day, utilizing Membrane Bio Reactor technology
                 to ensure that liquid waste meets government quality standards with minimal land and time usage. The waste is also
                 recycled through Ultra Filtration and Reserve Osmosis units to produce clean water for tenants and minimize natural
                 extraction from natural water resources.




                 Zero Water Runoff with Water Treatment Plant
                 [GRI 306-1]

                 Clean water at JIIPE is sourced from nearby water sources and managed with a Water Treatment Plant using a “Sea
                 Water Reverse Osmosis” desalination system, with a capacity of 2400 m3/day, to accommodate industries requiring
                 clean water supply for their production processes. Additionally, the JIIPE SEZ is equipped with rainwater harvesting
                 facilities.




                 Gas-Powered Electricity Generation as the Primary Energy Source
                 [GRI 305-5]

                 JIIPE is licensed to generate and distribute 515MW of electricity to tenants in the industrial zone. JIIPE utilizes Gas-
                 Powered Electricity Generation as the primary energy source and gradually develops the use of solar panels. This low-
                 emission gas-powered electricity generation aims to provide a sustainable electricity supply to support production and
                 operational activities within JIIPE.




                 Ecological Aspects in the JIIPE Industrial Zone

                 The JIIPE SEZ, which focuses on sustainable development and environmental protection, has helped create an industrial
                 zone that promotes ecological benefits and reduces the impact of industrial activities on the environment. Located in
                 Gresik near the Madura Strait, the JIIPE SEZ has a unique ecosystem that supports various plant and animal species.
                 This industrial zone has taken steps to protect and preserve biodiversity by implementing green infrastructure, such as
                 green roofs and walls, and creating green spaces within the industrial area. The biodiversity around the zone also serves
                 as an indicator of clean air in the surrounding area.


    SOCIAL

GEM City: An Environmentally Friendly Integrated Self-
Sustaining City Promoting Work-Life Balance


                                                                                            32.000
The JIIPE Industrial Zone is the largest industrial zone in East Java, as well as the
first integrated industrial zone in Indonesia, equipped with a port and docks for
cruise ships. The efforts of the JIIPE Industrial Zone in fulfilling its commitment


                                                                                            orang
to becoming an environmentally friendly industrial zone can be seen in its plan to
provide integrated housing called GEM City. GEM City is a concept of a modern self-
sustaining city that is environmentally friendly with the aim of creating a balance
                                                                                            Local Workforce Recruited from the
between quality work and life.
                                                                                            Surrounding Community of JIIPE


    GOVERNANCE




Rp71,5
                                    is the accumulated                                        JIIPE Achieves 1st Rank
                                    investment achievement                              1     out of 10 Industrial SEZs
                                    in JIIPE until the end of                                 that has demonstrated

triliun
                                    2023 from 24 investors                                    multiplier effect
                                    and businesses.


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          JIIPE Continues to Consolidate Investments for Infrastructure
      Development to Support Low Carbon Economy and Climate Resilience
                                                             [SEOJK F.3]


     As the top-ranked Special Economic Zone in Indonesia, JIIPE will further strengthen its efforts to support investment
     towards a low-carbon economy through a range of upcoming opportunities, including:



            Solar Panel                                                Rainwater Reservoir




     Installation of rooftop solar panels or floating solar panels   Expanding adequate reservoir facilities (lakes/ponds) to
     to increase the renewable energy mix for JIIPE.                 collect rainwater to meet the needs of JIIPE tenants while
                                                                     also serving as a flood control infrastructure.




       LNG Terminal Project
                                                                     In a sustainable effort to support national energy resilience
                                                                     and JIIPE’s commitment to bringing coal-free energy
                                                                     sources (zero coal), AKR will develop a Liquefied Natural
                                                                     Gas (LNG) project. Collaboration with BP Gas & Power
                                                                     Investments Limited underscores the commitment to
                                                                     ensuring gas supply as a more environmentally friendly
                                                                     transition fuel compared to coal, which is reliable for
                                                                     tenants in JIIPE and contributes to the East Java gas
                                                                     network. This project is targeted to be fully operational by
                                                                     2027.




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A STRONG FINANCIAL
FOUNDATION

Financial Performance Summary
In 2023, AKR remained resilient, having achieved significant          As a logistics supply chain provider for fuel and basic
growth in the past five years. AKR met Net Profit growth              chemicals, AKR implements a formula-based business
expectations of 16%, reaching Rp 2.780 billion compared               model that passes prices on to customers and emphasizes
to Rp 2.403 billion in 2022. The company has achieved a               a net open position. With AKR’s comprehensive and
31% CAGR over the past five years, with growth driven                 solid business model and excellent risk management,
by core business sectors, namely trading, distribution,               the Company consistently maintains performance and
and logistics, as well as increased contributions from the            achieves growth.
industrial area segment.
                                                                      In 2023, the Company paid dividends three times. The first
AKR recorded revenue of Rp 42.087 billion in 2023, a                  was paid based on the 2022 performance, decided through
decrease of 11% compared to the previous year’s Rp 47.540             the 2023 AGM, where the total cash dividend amounted to
billion. Revenue from trading and distribution amounted to            Rp 1.48 trillion or equivalent to Rp 75/share or 61.6% of the
Rp 38.213 billion, lower than Rp 44.698 billion, attributed to        2022 net profit, and was paid on May 24, 2023. In addition,
lower selling prices throughout the year due to normalized            the Company distributed interim dividends twice based
prices of fuel and international basic chemicals. With                on the 2023 net profit performance, namely (1) amounting
intensive market monitoring and disciplined business                  to Rp 987 billion (Rp 50/share) paid on August 7, 2023,
model implementation, the Company managed to                          and (2) amounting to Rp 493 billion (Rp 25/share) paid on
increase sales volumes and maintain segment margins                   November 15, 2023. Therefore, the company distributed
at 9%. The growth in trading and distribution volume also             interim dividends of Rp 1.48 trillion for the 2023 financial
drove logistics growth to Rp 994 billion in 2023.                     year, the remainder being paid after obtaining approval
                                                                      from the 2024 AGM.



                  Sales and Revenue                                                          Operating Profit
                            [SEOJK F.2]                                                           [SEOJK F.2]
                             (Rp billions)                                                          (Rp Miliar)

                            47.540                                                                                3.561
                                             42.087                                                 3.087



              25.707
                                                                                     1.455




               2021          2022             2023                                   2021           2022          2023




Direct Economic Impact Generated and Distributed (in thousands of Rupiah)
[GRI 201-1]



                       Yearly Economic Value                                 2023                   2022                      2021

 Direct Economic Value Generated

 Sales & Revenue                                                     42.086.952.436            47.539.986.604             25.707.068.900

 Profit on sale/disposal of fixed assets – net                               14.657.761              7.058.827                 7.523.368

 Gain (loss) on foreign exchange – net                                        6.248.958           (45.972.224)                 4.561.803




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                           Yearly Economic Value                         2023                 2022                    2021

      Other operating income                                             48.961.005           19.582.323              14.983.792

      Financial income                                                 196.567.492            49.074.023              37.128.972

      Share of profit of associates                                      34.534.891           16.632.809               7.144.436

      Net profit from discontinued operations

      Other comprehensive income (loss) for the current year
                                                                       (30.143.953)           96.944.039              22.726.312
      after tax

      Total value of economic value generated                       42.357.778.590       47.683.306.401        25.801.137.583

      Distributed Economic Value

      Operating Expenses:

      Cost of Goods Sold and Revenue                               (37.613.487.899)     (43.287.573.122)      (23.413.909.898)

      Operating Expenses                                              (974.870.563)       (1.129.093.882)        (837.853.080)

      Other Operating Expenses                                           (7.927.557)         (17.206.993)            (27.486.282)

      Capital Providers Payments:

      Financial Expenses                                               (68.489.236)          (57.212.531)            (57.068.728)

      Dividend Payments                                             (2.467.146.200)        (828.961.123)         (532.903.579)

      Payments to the Government

      Final Tax Related to Financial Income                            (35.675.352)           (9.359.048)             (5.350.243)

      Final Tax                                                        (19.813.545)          (62.100.226)            (41.680.021)

      Net Income Tax                                                  (589.188.690)        (544.757.403)         (260.061.263)

      Total Distributed Economic Value                            (41.776.599.042)      (45.936.264.328)     (25.176.313.094)

      Retained Economic Value                                          581.179.548        1.747.042.073              624.824.489



     In 2023, AKR contributed income tax, final tax, and final tax related to financial income totalling more than



     Rp644,68 billion                                       representing a 4.6% increase
                                                            compared to the previous period.



     In 2023, AKR distributed dividends to shareholders totalling more than



     Rp2.467,15 billion                                         marking a 197.6% increase compared to the total
                                                                dividends distributed in the previous year.




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Post-Employment Benefits for Employees
The provision of post-employment benefits demonstrates            AKR adheres to PSAK No. 24, “Post-Employment Benefits,”
AKR’s commitment to sustainability contributing to                and calculates benefits using the Projected Unit Credit
sustainable social and economic development, ensuring             method. Any actuarial gains or losses are recognized as
employees have a prosperous future.                               Other Comprehensive Income and presented in equity,
                                                                  while service costs are directly charged to the profit and
Post-employment benefits are provided in accordance               loss statement. In 2023, the Company recorded post-
with Labor Law No. 13/2003. These benefits, such as               employment benefits amounting to Rp177.23 billion,
pensions, severance pay, and service awards for tenure            marking a 22.5% increase from the previous year’s Rp144.72
with the company, are granted to employees after they             billion.
have ceased active employment. The calculation of these           [GRI 201-3]
post-employment benefits follows applicable labor laws.




Reach, Service Quality, Safety, and Customer
Responsibility
[SEOJK F.27]


AKR’s core competence in logistics services and                   subsidized fuel to industrial sector customers including
procurement solutions (supply chain) for energy and               commercial, smelters, power plants, manufacturing,
chemical products in Indonesia lies in its integrated,            plantations, fisheries, bunkers, and others, as well as retail
widespread distribution network supported by cutting-             sectors through retail outlets. For the subsidized retail
edge technology to ensure operational reliability for             fuel segment, the Company is a partner in distributing
customer satisfaction. AKR is supported by extensive              subsidized solar for motor vehicles and fishermen. AKR
infrastructure and logistics networks, as well as a reliable      sells high-quality diesel and gasoline for motor vehicles
IT monitoring system. The Company has storage tanks and           and fishermen in Java, Sumatra, Kalimantan, and Sulawesi.
distribution terminals in dozens of ports across Indonesia,       The company also develops non-subsidized retail fuel and
in addition to a complete logistics fleet including ships and     aviation fuel businesses through partnerships with BP
trucks for delivering fuel and chemical products, serving         Global. For retail fuel, the company has a joint venture with
thousands of companies and industries nationwide. In              BP, while for aviation fuel, it has formed the Air BP-AKR
2023, AKR increased its number of ships and trucks to             joint venture.
meet the growing demand from customers, especially                [SEOJK F.26]
in the eastern part of Indonesia. AKR distributes non-




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     Strong Network,                                    In the logistics and distribution field, AKR is supported by a robust fleet
                                                        and distribution hubs spread across the archipelago, including the

     Excellent Services                                 ability to effectively and efficiently reach the eastern parts of Indonesia
                                                        and remote 3T areas


                                    Our End-to-End Supply Chain is a Competitive Advantage




       Hub/Sea Ports
       Sea Ports
       River Ports




     17                                       4                                         819.400
     Sea and River Ports                      Main Hub Terminal in Jakarta              kiloliters of Tank Terminal Storage
                                              (with Royal Vopak), Stagen,
                                              South Kalimantan, Surabaya &
                                              Medan




     14                                       50.000                                    229
     Unit ships/SPOB                          M2 Warehouse                              Unit chemical & petroleum tankers



     AKR strives to continually expand its network coverage to reach broader areas in Indonesia, including inland regions
     accessible via river port infrastructures with significant market opportunities. This increase in connectivity is not only a
     business strategy but also a contribution from AKR to local economic growth, where it is believed that by strengthening
     this network, AKR will not only enhance its service capacity but also participate in driving regional economic dynamics,
     opening new opportunities, and fostering shared prosperity.
     [SEOJK F.29][GRI 203-1]




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Highlights                                                                                               and Compliance




AKR strengthens its maritime transportation fleet with AKRA 103
[SEOJK F.3]

                                                                   In 2023, AKR strengthened its maritime transportation fleet
                                                                   with the chemical/oil tanker AKRA 103. This tanker has a
                                                                   capacity of 18,000 DWT, enhancing delivery efficiency and
                                                                   reducing energy intensity and emissions per unit for each
                                                                   shipping process. Furthermore, AKRA 103 is a European-
                                                                   made vessel that has integrated Energy Efficiency Design
                                                                   Index (EEDI) standards into its design and construction
                                                                   process. In 2024, AKR plans to add another large-capacity
                                                                   chemical/oil tanker unit similar to AKRA 103, named AKR
                                                                   105.




                                                                   Total investment value for the purchase of AKRA 103 and
                                                                   AKRA 105 is



                                                                   Rp210 billion
Supply Chain
[GRI 2-6]


AKR appreciates the importance of diverse characteristics          To mitigate these potential negative impacts, AKR
in conducting logistics and procurement businesses in              suppliers must meet technical, financial, administrative,
Indonesia, actively engaging various types of suppliers,           and legal criteria. One aim is to ensure that supplies are
both large and small, as well as direct and indirect. In           not illegally sourced. Additionally, suppliers must adhere
the Company’s value chain, various partners contribute,            to environmental, health, and safety standards, as well as
including large companies, agents, cooperatives, and               understand the Company’s sustainability policies. In early
small entrepreneurs, who help supply finished goods                2024, AKR released a sustainable procurement policy to
or raw materials for further processing by AKR and its             reaffirm its commitment to achieving sustainability with
subsidiaries.                                                      all stakeholders.
                                                                   [GRI 308-1]
By building a robust supply chain ecosystem, AKR seeks
to benefit all parties involved, including suppliers who           In practice, a rigorous selection and screening process is
gain sustainable income, and other stakeholders such               carried out for potential new suppliers. As a result, 100%
as port authorities who generate revenue from business             of new suppliers processed by the procurement team
cooperation. This policy is expected to drive local                have been prequalified with general criteria, while the
economic growth by providing business and employment               assessment of AKR’s sustainable procurement policy will be
opportunities in the Company’s operational areas. To               conducted in 2024. Regular assessments and evaluations
ensure transparency in the procurement process, AKR                for registered suppliers continue to be conducted.
requires all suppliers to sign an Integrity Pact to uphold         [GRI 308-1]
honesty and prevent unethical practices. AKR is aware that
its operational activities and those of its suppliers have the
potential to cause negative impacts, such as oil spills and
pipeline leaks that can pollute the environment. Therefore,
suppliers’ awareness of environmental impacts also needs
to be enhanced.
[SEOJK F.28]




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     AKR is committed to supporting its suppliers, both large and SMEs. One example is the cooperation with palm oil farmers
     in the development of B30/B35 biodiesel in Indonesia. This collaboration is driven by AKR’s commitment to support the
     government’s program in using environmentally friendly vegetable fuel. In this collaboration, AKR works with palm oil
     farmers to ensure the availability of high-quality and sustainable raw materials. AKR also provides training and technical
     guidance to farmers to improve the quality and productivity of their crops. Through this collaboration, AKR hopes to
     reduce dependence on fossil fuels while helping farmers improve their welfare.
     [SEOJK F.5]




     CUSTOMER
     SATISFACTION
     [SEOJK F.30]



     AKR serves various customers across multiple industrial        customers. Additionally, in order to provide solutions that
     sectors, providing unsubsidized fuel for commercial            meet customer needs and achieve service excellence, AKR
     entities, smelters, power plants, manufacturing facilities,    leverages technology and after-sales support.
     plantations, fisheries, bunkering operations, and more.
     Additionally, the Company is involved in retail fuel           In 2023, no significant product recalls for fuels and basic
     distribution through its retail outlet network. Furthermore,   chemicals that adversely affected customer satisfaction
     partnerships extend to the subsidized fuel segment, where      were recorded, partly due to the implementation of ISO
     collaboration in distributing subsidized diesel for motor      9001:2015 Quality Management, especially for industrial
     vehicles and fishermen continues.                              fuel products, which is comprehensively applied and
                                                                    includes supplier selection, storage in tank terminals,
     The Company understands that customer satisfaction             risk management, commercial aspects, IT monitoring
     is key to achieving long-term success in business. Based       systems, HR management, distribution planning, and
     on this, AKR emphasizes a customer-centric approach in         sales and after-sales service. The quality management
     its operational activities, collaborating and engaging in      implementation at AKR is also regularly audited. Currently,
     two-way communication with customers to understand             the ISO 9001:2015 certificate has successfully undergone
     their needs and feedback regarding services. The results       recertification with validity from July 2023 to July 2026.
     of this communication and feedback serve as input for          [SEOJK F.29] [GRI 416-2]
     AKR to make continuous improvements to better serve




     Customer Relationship Management (CRM) System at AKR
     [SEOJK F.17]


     To operate effectively and efficiently, the company utilizes a Customer Relationship Management (CRM) system to
     facilitate the commercial team in tracking customer demands, purchase history, and planning for future requirements.
     Subsequently, this system is integrated with the Distribution Planning System. Ultimately, the integration of these digital
     systems enables the Company to deliver petroleum products and basic chemicals promptly, with the right quality, and
     efficient and effective delivery.




                            CRM Services Provided                           Digitalization, automation & Simplication

     •   Enganging New Customer
                                                                         From:                          To:
     •   Reminder and Appoinment
     •   Integration with Absence Application
     •   AKR News                                                   •   Paper Submission         •   Paperless
     •   Planning and Forecasting                                   •   Approval by Email        •   Approval by System
     •   Customer Discount Simulation                               •   System Silo              •   All in one System
     •   Customer Quotation                                         •   Not Integrated           •   Integrated System
                                                                    •   Manual Mapping           •   Geo-tagging Technology
                                                                    •   Web-based                •   Mobile Apps & Web-based




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Highlights                                                                                                    and Compliance




In more detail, the functions of this IT-based CRM are as       Through the use of advanced information technology
follows:                                                        systems, AKR can also monitor product status and fleet
• New Customer Acquisition                                      positions. Thus, the quantity and quality of products and
    Sales personnel can input potential customers into the      services provided can be maintained and tailored to
    system.                                                     customer demand.
• Planning and Forecasting
    Sales personnel can plan sales per customer for the         AKR regularly monitors and analyzes customer feedback
    next month.                                                 to identify areas that need improvement. This feedback
• Appointment Reminders                                         serves as a reference for AKR in making improvements
    There are reminders for all appointments for sales          and solutions to enhance customer satisfaction.
    personnel.
• Customer Discount Simulation                                  As a form of commitment, the Company provides
    Sales personnel can calculate margin contributions          comprehensive after-sales support. Branch representatives,
    before providing price quotations in PDF files to           sales teams, and Customer Relationship Officers (CROs)
    customers.                                                  are ready to handle complaints and address any issues
• Integration with Absence Applications (out of the             that may arise. The M-Files system is used to ensure that
    office)                                                     complaints are resolved quickly and accurately.
    Sales personnel can check-in and check-out at customer
    locations without having to come to the office, as AKR      Using sophisticated systems, excellent service, and a
    has implemented Geo Tagging technology in this              commitment to continuous improvement, AKR believes it
    system.                                                     can provide maximum satisfaction to customers.
• AKR News
    Sales personnel can get updates from the AKR team
    related to products, prices, and more.
• Flexible Ordering System
    Sales personnel can create Sales Orders using their
    phones or laptops anytime and anywhere.
• Providing Useful Reporting and Dashboards




Customer Complaint Handling
[GRI 416-1]


AKR understands that every input from customers is crucial      In practice, the Company has developed a comprehensive
to improving service and product quality. Therefore, AKR        online system called M-Files to handle and resolve
provides an easy and effective mechanism for customers          customer complaints, designed with customer needs in
to voice their complaints, criticisms, and suggestions.         mind, making it easy to use and informative. The workflow
                                                                of AKR’s customer complaint handling system is as follows:


                                                       CRO Input to
                                                       The System                              Assignment




                                                       Notification                            Notification


                                      CUSTOMER
                                    RELATIONSHIP
     COMPLAINTS                                                       SYSTEM M-FILES                             PIC per Topics
                                     COMPLAINTS
                                    OFFICER (CRO)



Whenever a customer submits a complaint via email, phone, or in-person (face-to-face), the information is recorded by
the Customer Relationship Officer (CRO) into the M-Files technology system according to the branch where the complaint
is received. Subsequently, the reported complaint is followed up by the assigned Person-in-Charge (PIC), who will then
take appropriate steps to address and update the assignment accordingly. Once the complaint is resolved, the CRO will
receive a notification to ensure that the reported issue has been properly handled.




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     OPERATIONAL EXCELLENCE AND
     ADVANTAGES OF TECHNOLOGY
     UTILIZATION
     Superior Operational Performance
     As a company operating in the energy and chemical                              efficiency. By adopting an approach that integrates
     industries, as well as integrated industrial development with                  automation and digitalization, streamlined management,
     an environmental focus, AKR is committed to achieving                          and a focus on safety and customer satisfaction, AKR
     operational excellence, through various strategies aimed                       has positioned itself as one of the leading companies in
     at improving operational efficiency, ensuring safety, and                      operational excellence.
     supporting sustainability.
                                                                                    AKR’s operational excellence in the logistics supply chain
     Efforts to achieve operational excellence have significantly                   in 2023 includes
     contributed to optimizing the operations in various                            [SEOJK F.26]
     business areas, reducing costs, and enhancing overall




                       Standard Operating Procedure (SOP) for Loading and Unloading in accordance
                       with ISO standards                                                                                                        Post Loading COA of
                                                                                                                                                  Master sample for

                                                                                                                                                                               12
                                                                                                                        CONTROL CHECK            selected Customers
                                                                                     AKR Control                        VISUAL TEST
                                                                                         Tower                          DENSITY CHECK
                                COQ/COA                        Control Check                                            Check Vs Master
                                FROM                 2         Visual TEST                                              Sample

                                             1                                                                                            Vessel sample
                                VENDOR                         DENSITY CHECK

                                                                                                    Terminal SCADA PC                                                  CONTROL CHECK
                                                                                                                                                                       VISUAL TEST
                                                                                                                                                                       DENSITY CHECK
                                                                                   Monthy COA                                                                          Density Check

                                                                                                                                                               11
                                                                               6
                                                                                                                    9
                                                                                                   Control Check
                                                          HSD/BSO                                  HSD/FAME
                                                                                                   Daily Check vs
                                                                                                   70/30 Blend

                                                                                            7
                                                                70%
                                                                                        IN LINE
                                                         Master Sample B30
                                                                                       BLENDING

                                                 5            30%

                              COQ/COA
                              FROM
                                                                                                        8
                                                                                                                                                                        Truck
                              VENDOR
                                                                                         CONTROL CHECK                                     10                           sample
                                                                                         VISUAL TEST
                                                     FAME/B100
                                        3                                                DENSITY CHECK
                                                                                         Daily Check VS
                                                                                         Master Sample

                                        4                                                                                      CONTROL CHECK
                                                                                                                               VISUAL TEST
                                                                                                                               DENSITY CHECK
                             CONTROL CHECK                                                                                     Check VS Master
                             VISUAL TEST                                                                                       Sample
                             DENSITY CHECK
                             ACID TEST



                       The process flow prioritizing operational excellence in AKR’s storage tanks includes:
                       • B30 successfully renewed to accommodate B35 product.
                       • Standard Operating Procedures (SOP) Work Instruction observation and Internal Audit ISO 9001:2015
                         are conducted periodically to ensure operational SOPs from inbound, storage, blending, to outbound.
                       • Achievement: zero fatalities.



                       Tank & Pump Maintenance

                       •   Tank inspection according to API 653 has been completed by 90% until 2023.
                       •   Pump performance greatly influences the efficiency of the loading and unloading process. Regular
                           monitoring of pump conditions is carried out to eliminate unscheduled damages, ensuring optimal
                           flow rates. Consequently, timely deliveries and proportional mixing are achieved. In 2023, 97% of pumps
                           have been monitored to be functioning properly.




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Highlights                                                                                                    and Compliance




              Monitoring routes and safety of the land transportation fleet along with its
              drivers

              •   Reduction of land transportation incidents by monitoring drivers through a Control Tower (driver
                  behavior, unauthorized routes, distance, and round-trip time), as well as increasing fleet truck utilization.
              •   Driver of The Month Program (DoTM)
                  • Objectives :
                     • Improve driver behavior to reduce accidents.
                     • Enhance driver productivity.
                     • Boost driver morale and retention.
                  • Reward :
                     • Recognition given at Branch, Regional, and National levels.
                     • Monthly and Annual Driver Awards for selected drivers meeting the criteria
              •   Driver Medical Check Up
              •   Road safety & accident management
                  • Road Hazard mapping: Identifying hazards and implementing controls on each customer route.
                  • Incident investigation and monitoring closing actions.
                  • Changing behavior and promoting safe driving techniques through Defensive Driving Training.
              •   Fatigue management
                  • Roster and working hour schedule.
                  • Driver working hours: 4 driving hours must be interspersed with a 30-minute break




                    Staying Safe on the Road with the AKR Dashcam
In 2023, AKR equipped dashcams featuring ADAS (Advanced Driver Assistance Systems) and DMS (Driver Monitoring
Systems). The ADAS system provides early warnings to drivers regarding potential road hazards, such as vehicles getting
too close or lane departures. Meanwhile, the DMS monitors driver behavior, such as drowsiness, phone usage, and more.
The system aims to ensure vigilance and prevent accidents. By prioritizing driver safety, AKR promotes the creation of a
safe and sustainable transportation ecosystem. As a result, in 2023, the company continued to reduce incidents, and the
fleet was noted to be more productive.




     ADAS                          DMS                           Control Tower Monitoring

• Forward Collision           1. Yawning
  Warning                     2. Eyes Closed
• Headway Monitoring          3. Distraction
• Pedestrian Collision        4. Smoking
  Warning                     5. Phone Call
• Lane Departure              6. Camera Cover
  Warning                     7. IR Sunglasses
                              8. Driver Absent
                              9. Driver Face Recognition
                                                                 Get notification /




                              10. Driver Change
                                                                                                     Monitoring
                                                                                                     Shipment
                                                                     Violation




                              11. Driver Back

                                                                                      Alert




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                     Efficient and effective marine route planning and environmentally friendly vessel
                     operations

                     Operational excellence for AKR-AST in the maritime transportation sector is crucial to maintain reliability,
                     efficiency, and effectiveness in vessel management and cargo delivery. Implementation approaches to
                     operational excellence adopted by AKR-AST include:
                     • Clear and measurable standard operating procedures for every aspect of shipping operations, including
                         route planning, vessel management, cargo management, and inventory management.
                     • Utilization of technology and information systems to optimize shipping operations, such as transportation
                         management systems, vessel tracking, security management, and risk management.
                     • Priority on safety and security in all aspects of maritime transportation operations, including crew
                         training, routine vessel inspections, and compliance with safety standards regulated by government
                         and industry bodies.
                     • Improving efficiency and productivity by managing operational costs, minimizing disruptions to
                         shipping operations, and managing fuel and energy, inventory, workforce, as well as vessel repairs and
                         maintenance.
                     • Focus on environmentally friendly operations by reducing emissions and waste, improving energy
                         efficiency, and enhancing waste management through technologies such as Oil Water Separators,
                         incinerators, and sewage tanks, as well as collaboration with waste management vendors licensed by
                         relevant authorities.
                     • Ensuring that AKR-AST’s operational standards comply with national regulations and standards as well
                         as those of the International Maritime Organization (IMO) that have been ratified.




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Highlights                                                                                            and Compliance




    To preserve the marine ecosystem, AKR-AST adheres to the Ballast
      Water Management standards set by the International Maritime
                            Organization (IMO)
As one of the pioneers in the maritime transportation          management procedures that are not only efficient but
industry, AKR-AST is committed not only to operational         also environmentally friendly. Through the use of advanced
excellence but also to sustainable practices that preserve     technology such as ballast water treatment, AKR-AST
the marine ecosystem. Awareness of environmental               eliminates biological risks before water is discharged into
responsibility has driven AKR-AST to implement the             the sea. This is part of the Company’s sustainable efforts
Ballast Water Management (BWM) standards issued by             to protect marine habitats and reduce the environmental
the International Maritime Organization (IMO).                 impact of its operations.

Ballast water management is crucial in preventing the          This commitment is also reflected in crew training and strict
spread of invasive species between bodies of water, a          supervision of procedural compliance, reaffirming AKR-
long-standing concern in global marine conservation.           AST’s position as socially and environmentally responsible.
AKR-AST understands that poorly managed ballast water          This proactive step not only supports the preservation
has the potential to disrupt the balance of ecosystems         of marine biodiversity but also strengthens AKR-AST’s
in new areas. By adhering to IMO standards, AKR-AST            reputation as a company that prioritizes environmental
demonstrates genuine concern for aquatic ecosystems.           sustainability alongside operational excellence.

These standards ensure that every vessel operating
under the AKR-AST flag implements ballast water




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     Continuous Improvement
     AKR, along with its subsidiaries, is committed to                against industry best practices, and adopting the latest
     implementing Continuous Improvement as the core of               technologies and innovations. Enhancing employees’
     its business performance and sustainability strategy. This       skills and knowledge through intensive training programs
     involves a commitment to continuous renewal in every             is also a crucial part of this strategy. The PDCA (Plan-Do-
     aspect of the Company’s business processes, systems,             Check-Act) approach is further adopted as the framework
     and culture with the primary goal of enhancing overall           for all Continuous Improvement initiatives.
     efficiency, effectiveness, and quality. In practice, AKR
     continuously evaluates and updates its management
     systems and business processes, benchmarking them


                   Plan                            Do                           Check                             Act


         In the Plan phase, AKR                                         In the Check phase, the            In the Act phase,
       identifies areas that require                                   focus is on evaluating and      continuous improvement
                                       In the Do phase, these plans
      improvement and develops                                           analyzing performance        actions are taken, and steps
                                            are implemented.
       action plans along with key                                       against predetermined         are developed for the next
        performance indicators.                                               indicators.                      iteration.




     Through the implementation of this Continuous Improvement strategy, AKR and its subsidiaries strive not only to improve
     product and service quality, reduce costs, and enhance operational efficiency but also to strengthen market position and
     create added value for customers and communities.




                                                     Plan                   Do
                                                        (Plan)            (Perform)




                                                        Act              Check
                                                     (Improve)            (Monitor)




     AKR has also developed a Business Continuity Plan (BCP) to ensure the ability to continue operations in the event of
     disruptions, regularly tested and updated to ensure its effectiveness.




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Adopting IT & Cutting-Edge Technology
In ever-changing and challenging times, AKR recognizes            strategic investments in digitization, AKR has successfully
the importance of adapting and evolving to remain                 achieved significant improvements in operational
relevant. In the face of increasing complexity, the               efficiency.
application of technology becomes the main foundation
in efforts to build operational excellence, while also being      The development of AKR’s IT system is based on 4
fundamental to the commitment to sustainability. With             generated values:




                                                         Collaboration




                                                            Assurance


                                          Optimization                   Optimization




         Collaboration                   Optimization                        Simplification                    Assurance


                                                                    Simplification of processes         Assurance for availability,
                                   Simplifying workflows and
   Developing productivity                                               to eliminate tasks that        traceability, security, and
                                    shortening processing
   across business processes                                             do not add value, are           alignment with overall
                                           periods.
                                                                    unnecessary, or excessive.            business objectives.




In 2022, AKR developed an integrated information system,          4. Establishing IT security policies and procedures to
pursuing a strategic program focusing on Collaboration,              prevent and address cyber-attacks that could threaten
Automation, Simplification, and Assurance & Governance.              operations. Policies and Standard Operating Procedures
The implementation of IT policies during 2023 included:              (SOPs) are developed with guidance from the National
1. Maximizing online communication media for more                    Cyber and Crypto Agency (BSSN).
   integrated collaboration and interaction within a single
   platform.                                                      AKR continuously develops its IT system and allocates
2. Comprehensive utilization of Customer Relationship             sufficient budget to support operations. IT development
   Management (CRM), enabling tracking and monitoring             initiatives at AKR are complemented by competency
   of sales activities up to the point of order.                  enhancement through training and certification to ensure
3. Development of a distribution planning system focusing         optimal implementation.
   on managing the supply chain from order reception
   to timely delivery to customers. This enables daily and
   monthly monitoring of truck or transportation fleet
   management, ensuring more effective and efficient
   fleet utilization.




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     Privacy Data and Cybersecurity
     [GRI 418-1]


     AKR recognizes that the rapid pace of technological            •  Formulating organizational strategies through the
     advancement brings not only convenience but also                  protection of non-public material data and information
     challenges, particularly concerning data privacy and              using relevant references from international standards
     cybersecurity. In line with this, in 2021, the Company            and best practices.
     strengthened the implementation of data protection and         • Establishing governance structures that effectively and
     cybersecurity across all operational business lines. This         efficiently manage information security risks.
     included the adoption of comprehensive cybersecurity           • Managing identified security risks to acceptable levels
     policies, addressing risk management related to                   as per management agreements, documented in
     confidentiality, integrity, and availability of information.      Key Performance Indicators (KPIs), within standard
                                                                       risk tolerance limits by designing, implementing, and
     Policies, governance, and standard operating procedures           maintaining risk improvement plans.
     related to data privacy and cybersecurity at AKR are           • Cultivating a culture of accountability and increasing
     outlined in:                                                      awareness among all personnel.
     • ITE-SCO-SCO-POL-001 - IT Security Policy                     • Assigning responsibility and accountability for
     • ITE-SCO-SCO-PRO-001 - Cyber Security Incident                   information     security   policies  and     governance
        Response                                                       throughout the Company.
                                                                    AKR is committed to continually enhancing information
     In implementing these policies and procedures, AKR’s IT        security to ensure that objectives are met and can adapt to
     and cybersecurity governance consists of IT Data Center        changes in the cybersecurity threat landscape, as well as
     Operations, IT Network, IT Security and Compliance, IT         considering evolving organizational, legal, and regulatory
     Development, and IT Infrastructure and Operations.             requirements.

     The implementation of these policies falls under the           In its implementation, AKR’s Information Technology
     Information Technology Department. The objectives of           Department routinely conducts technical training for the
     these policies are:                                            IT team and raises awareness among all employees about
                                                                    the importance of safeguarding personal data.




                                    Cybersecurity Training for Employees
     During 2023, AKR invested in cybersecurity training for new employees. A total of


     132 employees
     received training aimed to enhance awareness and knowledge of digital security threats and best practices to protect
     the Company’s systems and data from cyber-attacks. By strengthening employees’ capabilities in cybersecurity, AKR is
     safeguarding sensitive information and ensuring safe and reliable operational continuity.




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Highlights                                                                                              and Compliance




MANAGING ENVIRONMENTAL
FOOTPRINTS
With a diverse business portfolio spanning the trading           Active participation is also reinforced in addressing the
and distribution of fuels and basic chemicals, logistics,        challenges of climate change by adopting environmentally
manufacturing, and industrial estate development, AKR            friendly operational practices and implementing programs
closely monitors and mitigates potential negative impacts        for biodiversity conservation, energy efficiency, adoption of
on the environment in every aspect of operations.                renewable energy for operations, efforts to reduce carbon
                                                                 emissions, water conservation, and waste management.
AKR continues to strive for good, responsible environmental
management, free from air and water pollution, noise, and
other environmental risks that may arise from operational
activities.




                  AKR maintains its 12th ranking in the BLUE PROPER.
In 2023, the Company successfully maintained its BLUE            7. Terminal Stagen
PROPER ranking in 12 operational regions, as follows:            8. Terminal Banjarmasin
1. Terminal Bali                                                 9. Terminal Palaran
2. Terminal Ciwandan                                             10. AKR Lampung
3. Terminal Tanjung Emas Semarang                                11. Terminal Bitung
4. Terminal Nilam Timur                                          12. Terminal Medan Gabion
5. Terminal Nilam Utara
6. Terminal Pontianak




Energy Management
Energy is vital to AKR’s operations. Amidst the real issue       The methodology used to calculate energy consumption
of climate change, responsible energy management is              involves gathering data on fuel purchases, as well
a primary commitment and AKR continues to strive for             as electricity bills and metering used by AKR and its
efficient energy use through various strategic measures to       subsidiaries. The conversion factors used to calculate
enhance resilience and operational efficiency.                   energy units refer to standards from the IPCC Guidelines
                                                                 for National Greenhouse Gas Inventories (2006), the World
In 2023, AKR’s total energy consumption amounted to              Resources Institute, and the World Business Council for
781,357.57 Gigajoules (GJ). This figure increased compared       Sustainable Development.
to the previous year due to the expansion of AKR’s truck and
vessel fleet and an increase in the quantity of distributed      The Company remains consistent in its efforts for energy
products, including to industrial and retail customers.          efficiency, including:
Additionally, the Company recorded an increase in the
number of tenants in the JIIPE KEK.                              1. LED lighting usage: LED lighting in AKR offices,
                                                                    marketing offices at KEK JIIPE Gresik, BP-AKR stations,
The trend of renewable energy use at AKR also showed a              office buildings, and terminals
positive performance, with the proportion reaching 27% of        2. Solar sensor usage: Solar sensors are installed on lights
the total internal energy consumption of the Company in             at the JTT site.
2023.                                                            3. Inverter usage for large-capacity production motors at
                                                                    ARUKI, and others.
Despite the overall increase in energy consumption, AKR          4. Solar panel usage at various points to increase the mix
managed to maintain the trend of energy consumption                 of renewable energy used for AKR’s operations.
intensity, with 2023 recorded at 0.17 GJ/million Rp Revenue,
which is relatively stable compared to the energy intensity
of the previous year, which was 0.16 GJ/million Rp Revenue.




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     Total Energy Consumption and Intensity
     [SEOJK F.6][SEOJK F.7][GRI 302-1][GRI 302-2][GRI 302-3]



                                   ENERGY CONSUMPTION                                               2023                   2022          2021

      Non-Renewable Energy Consumption (GJ)

          BBM                                                                                      311,079.04              256,493.23   311,451.05

          Gas                                                                                        26,454.22              22,019.47    27,079.10

          Electric                                                                                   48,276.15              53,408.20    51,579.01

      Total Non-Renewable Energy                                                                   385,809.41              331,920.91   390,109.15

      Renewable Energy Consumption (GJ)

           Biodiesel                                                                               140,184.87               99,892.51   112,304.71

          Solar Panels                                                                                 1,880.89              1,621.07            -

      Total Renewable Energy                                                                       142,065.77              101,513.58   112,304.71

      Total Energy Consumption within the Organization                                             527,875.18              433,434.49   502,413.86

     Note: BBM consists of Industrial Diesel Oil, Marine Diesel Oil, Marine Fuel Oil, Pertalite, and operational diesel.



       Proportion of AKR’s Internal Energy Consumption in
               2023 Based on Energy Source Types

                                                   No n
                                                       -Re
                                                          ne
                               y                            wa
                        e   rg                                 bl
                                                                  e
                     En
                                                                     En
                le




                                                                       er
              ab




                                                                         gy
            ew




                        27%
          Re n




                                                                                              Trend of renewable energy usage at AKR continuous to
                                                                                              increase from year to year and in 2023



                                                          73%                                 27%


                      Graph of AKR’s Energy Consumption Trend 2021-2023 from Renewable Energy Sources (GJ)
                                                                                                    142.065,77

                                                                    112.304,71
                                                                                     101.513,58




                                                                       2021            2022             2023




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Sustainable                 Company           Our Business        Our                       Our                    Our Conduct:
Performance                 Profile           Portfolio           People                    Communities            Governance, Ethics      79
Highlights                                                                                                         and Compliance




      Energy Consumption Outside the Organization (GJ)
                                                                            2023                    2022                    2021
                       (EXTERNAL)

  Electric                                                                 253.482,39              233.605,28              239.637,90

  Total Energy Consumption Outside the Organization                        253.482,39              233.605,28              239.637,90

Note: Electricity sold to JIIPE tenants




                                                                            2023                    2022                    2021

  Total Energy Consumption (GJ) (Internal + External)                      781.357,57              667.039,77              742.051,76

  Gross Profit (Rp million)                                              4.473.464,50                4.252.413               2.293.159

  Energy Intensity (GJ/ Rp millions)
                                                                                     0,17                   0,16                    0,32
  [GRI 302-3]



                                          Graph of Energy Intensity Trend AKR 2021-2023
                                                      0,32




                                                                0,16          0,17




                                                      2021      2022          2023




   Supporting Indonesia’s Energy Transition with Solar Panel Installation
                                           [GRI 305-5][SEOJK F.7][SEOJK F.12][SEOJK F.26]


AKR is committed to supporting the National Energy                     This installation is expected to reduce carbon emissions
Policy (KEN) and Indonesia’s steps towards a low-carbon                and the impacts of climate change, increase energy
economy, partly through the initiative of installing solar             efficiency, reduce operational costs, and support the
panels.                                                                government’s target of using renewable energy.


              AKR                                APR                                  KEK JIIPE


              51,7 KWp                           23,1 KWp                             400 KWp*
                                                                                      *commissioning stage and developed
                                                                                      progressively until 2032.




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     Emission Control
     As a company committed to conducting sustainable                               Other air emissions include those from the use of fossil
     business, AKR recognizes the importance of reducing                            fuels in operational vehicles, generators, and business
     Greenhouse Gas (GHG) emissions, a major factor in climate                      transportation operations, including truck and ship
     change. In support of the government’s commitment to                           deliveries. The emission calculation method used, along
     achieve Net Zero Emissions by 2060, AKR is implementing                        with emission factors, refers to the IPCC Guidelines for
     policies aimed at reducing emissions from operations.                          National Greenhouse Gas Inventories (2006), Biograce, JEC
                                                                                    database, and Ecoinvent.
     GHG emissions originate from the use of fossil fuels (BBM)
     and electricity. The use of fossil fuels results in direct GHG
     emissions (Scope 1), while electricity consumption results
     in indirect GHG emissions (Scope 2 and Scope 3).




                                       AKR is committed to supporting the government’s efforts to achieve

                                                     Net-Zero Emission
                                                                            by 2060

     To achieve this, AKR will continue its efforts to establish baseline emissions in the coming years, which will then be used
                                    as the basis for developing the Company’s net-zero strategy.




     Total Emissions Produced
     [SEOJK F.11] [GRI 305-1] [GRI 305-2] [GRI 305-3]

            Subsidiaries            2023     2022         2021      Difference              Subsidiaries         2023        2022         2021      Difference


      EMISSIONS SCOPE 1                                                               EMISSIONS SCOPE 2


      AKR                           616,06    728,00      824,59      -15,38%         AKR                       6.231,87    5.614,45     6.063,94      11,00%

      ATI                       5.857,20     4.857,81   8.241,95       20,57%         JTT                         651,27    1.152,42     1.082,59     -43,49%

      AST                     16.031,85 12.582,21 13.458,56            27,42%
                                                                                      APR                         865,88    2.170,23     1.450,51     -60,10%

      JTT                             7,29       7,45       15,20      -2,16%
                                                                                      DPR                          44,91        22,53       47,47      99,29%

      BKMS                      1.655,01     1.769,86   1.822,09       -6,49%
                                                                                      ARUKI                     2.990,14    3.471,43     3.457,60     -13,86%

      BMS                           257,76    169,21      168,89       52,33%         TOTAL EMISSIONS
                                                                                                              10.784,07 12.431,07 12.102,10           -13,25%
                                                                                      SCOPE 2
      APR                             1,42       7,84        7,53     -81,88%
                                                                                      EMISSIONS SCOPE 3

      DPR                             3,23       2,68        2,16      20,58%
                                                                                      BKMS                    56.329,42 51.912,28 53.252,87             8,51%

      ARUKI                         586,36    440,97      529,31       32,97%         TOTAL EMISSIONS
                                                                                                              56.329,42 51.912,28 53.252,87
                                                                                      SCOPE 3
      TOTAL EMISSIONS
                              25.016,20 20.566,03 25.070,28            21,64%
      SCOPE 1                                                                         TOTAL EMISSIONS         92.129,69 84.909,39 90.425,25             8,50%

     Note: Emission Factors are based on the Ministry of Energy and Mineral Resources (KESDM) 2021 standard, IPCC AR 5, and FW GRK Electric Power System 2019.




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Performance              Profile               Portfolio                People                 Communities             Governance, Ethics        81
Highlights                                                                                                             and Compliance




     JTT Implements Renewable Energy Certificate to Reduce CO2 Emissions
                                                                [GRI 305-5]

In line with its commitment to environmental sustainability,              RECs play a pivotal role in the transition towards cleaner and
Jakarta Tank Terminal (JTT) has taken a significant step forward          greener energy sources. By leveraging these certificates, JTT is not
by incorporating Renewable Energy Certificates (RECs) into its            only mitigating its environmental footprint but also contributing
operations. Through the utilization of 50% Renewable Energy               to the larger goal of combating climate change. The adoption of
Certificates, JTT has effectively reduced its carbon dioxide (CO2)        RECs underscores JTT’s dedication to responsible and eco-friendly
emissions by 582 metric tons per year (MT/y).                             practices within its operations.




 ARUKI Implements Innovative Solution to Reduce Diesel Consumption
                       and GHG Emissions
                                                         [GRI 302-4] [GRI 305-5]

ARUKI, a leading chemical manufacturer, has recently implemented          By repurposing steam as an alternative energy source, ARUKI
an innovative solution to reduce its reliance on diesel fuel and curb     demonstrates its commitment to environmental responsibility
greenhouse gas (GHG) emissions. Effective December 2023, ARUKI            and resource efficiency. This initiative aligns with the company’s
began utilizing steam from its offgas formalin plant to power its         broader sustainability objectives, emphasizing its dedication to
powder plant operations. This strategic move marks a significant          reducing its environmental impact. ARUKI’s proactive approach to
milestone in ARUKI ‘s sustainability journey, as it not only cuts         address energy consumption and GHG emissions sets a precedent
down diesel consumption but also leads to a noteworthy reduction          for sustainable practices within the chemical manufacturing
in GHG emissions.                                                         sector, showcasing its leadership in environmental stewardship.




Intensity of Emissions
[SEOJK F.11] [GRI 305-1] [GRI 305-2] [GRI 305-3] [GRI 305-4]


                                                                                 2023                   2022                    2021

 Emissions Scope 1 (Ton CO2e)                                                    25.016,20              20.566,03                25.070,28

 Emissions Scope 2 (Ton CO2e)                                                    10.784,07              12.431,07                12.102,10

 Emissions Scope 3 (Ton CO2e)                                                    56.329,42              51.912,28                53.252,87


 TOTAL EMISSIONS (Ton CO2e)                                                      92.129,69              84.909,39               90.425,25

 Gross Profit (Rp. JUTA)                                                         4.473.465              4.252.413                2.293.159

 Intensity of Emissions
                                                                                        0,02                   0,02                     0,04
 (Tonnes of CO2e / Gross Profit in million IDR)


         AKR Emission Intensity Trend 2021-2023                                     Proportion of AKR’s Emissions in 2023
                  0,04


                                                                                                                Scope 1

                                   0,02       0,02
                                                                                                                27%


                                                                                         Scope 3

                                                                                          61%                         Scope 2
                  2021             2022       2023                                                                    12%




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     AKR’s emission intensity in 2023 was recorded at 0.02                              The stability of AKR’s emission intensity in 2023 is the result
     tons of CO2e per Rp million Gross Profit, showing no                               of collective efforts from all subsidiaries, where focused
     change from the previous year. This indicates that AKR has                         and sustainable strategies have been able to control and
     successfully achieved efficiency in its operations, resulting                      reduce emissions from various sources.
     in the stabilization of greenhouse gas emission intensity
     per unit of gross profit generated. Despite increased
     business activities, fleet additions, an increase in the
     number of tenants in KEK JIIPE, and a rise in gross profit,
     this did not lead to an increase in emission intensity
     [SEOJK F.11]




     Scope 01            • The delivery fleet is a primary focus in emission control. Technology and Artificial Intelligence (AI) is used in route planning and
                           scheduling to ensure fuel efficiency.
     Direct              • The Company is also committed to using biodiesel in all land transportation fleets, in line with government policy effective September 1,
     Emmisison             2018.




     Scope 02            • Switched to using energy-saving LED lights.
                         • Installation of solar panels in several AKR offices.
     Indirect            • JTT participates in the Renewable Energy Certificate (REC) program from PLN.
     Emmisison           • Calls for electricity conservation within the Company’s internal operations are part of the policy applied to all employees and operational
                           areas.




     Scope 03            • The use of combined cycle technology at the JIIPE Power Plant, which combines the use of natural gas and MFO, has successfully
     Indirect              reduced carbon emissions by 11%.
     Emmisison




     As a strategic step forward, considering that 61% of AKR’s emissions come from Scope 3 emissions originating from
     the electricity generated and sold to tenants at JIIPE, AKR continues to invest in various initiatives and new energy
     infrastructure. These investments will include rooftop solar panels, floating solar panels, and the development of
     LNG projects. All investments demonstrate a commitment to supporting the government in achieving its Nationally
     Determined Contribution (NDC) and Net Zero Emission targets.
     [SEOJK F.12]




                The Combined Cycle Technology at the JIIPE Power Plant Has
                        Successfully Reduced Carbon Emissions
                                                                             [SEOJK F.12]


     The JIIPE Power Plant is designed with a combined cycle                            As a result, the JIIPE Power Plant successfully reduced CO2
     concept, allowing the use of two types of fuel, namely                             emissions by 1,632.05 tons. This achievement demonstrates
     Marine Fuel Oil (MFO) and natural gas. Currently, the use                          the JIIPE Power Plant’s commitment to supporting clean
     of natural gas is favored as it is considered a transitional                       and environmentally friendly energy.
     energy with much lower carbon emissions compared to
     other fossil fuels.
                                                                                        AKR successfully reduced by

     Therefore, in 2023, the JIIPE Power Plant committed to
     using natural gas, which resulted in lower carbon emissions                        2,145,220 kilo CO                                             2
     by up to 13% compared to MFO.
                                                                                        per year
                                                                                        due to the combined cycle technology at the JIIPE Power
                                                                                        Plant.




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Highlights                                                                                                    and Compliance




Carbon Monoxide (CO) and Nitrogen Oxides (NOx)
Emissions
[GRI 305-7]


Transportation processes in AKR’s operations, such as            To mitigate and control air pollution from CO and NOx, AKR
logistics, transportation, and distribution, generate Carbon     has implemented several measures. These include strict
Monoxide (CO) and Nitrogen Oxide (NOx) emissions from            vehicle maintenance programs to ensure combustion
various sources, such as fuel combustion in AKR’s transport      efficiency, mandatory periodic emission testing for all
fleet, including tank trucks and other vehicles powered by       land transport fleets, and ensuring vehicles not only meet
internal combustion engines.                                     efficiency standards but remain below specified emission
                                                                 limits.

                                                                 These inspections allow AKR to proactively identify and
                                                                 address potential emission issues, directly supporting air
                                                                 pollution reduction.



Water Intake and Conservation
Water and effluent management are vital pillars of AKR’s         Additionally, AKR continues to seek innovation in water
sustainability strategy, and the Company is committed            conservation technology to enhance efficiency and reduce
to ensuring responsible water resource use and effective         freshwater usage. Initiatives such as rainwater harvesting,
effluent management in its operations.                           water reuse, and the adoption of cutting-edge wastewater
                                                                 treatment technologies demonstrate a commitment to
AKR meticulously records water usage data collected from         sustainable water resource management, evident through
PDAM meters, groundwater pump flow meters, and the               the zero water runoff design at JIIPE.
volume of water transported by truck. Data separation is
conducted between operational and office water usage.
AKR’s total water intake in 2023 was 471.18 Megaliters.
Concerning water usage, no significant disruptions to
water sources were recorded due to AKR’s water intake
and discharge activities in 2023.


Total water intake
[SEOJK F.8] [GRI 303-3]

                          Water Sources (m3)                            2023                   2022                    2021

 Groundwater                                                                   2.126                  1.329                   1.059

 Surface water                                                            22.978                 316.869                  271.577

 Produced water                                                                    -                 70.382                           -

 Third-party supplied water                                              446.077                 225.779                  178.307

 Total water withdrawal (m3)                                             471.180                 614.359                  450.943

*1 Megaliter = 1.000 m3




6,131 m of recycled water 3

Used by JTT and ARUKI throughout 2023 for their

operations.




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     Wastewater Management
     [SEOJK F.13]

     AKR complies with government regulations and industry          At ARUKI, wastewater is directed to the wastewater
     standards regarding wastewater (effluent) management,          treatment plant (WWTP), and then further treated at PT
     with all facilities equipped with wastewater treatment         SIER’s WWTP. The discharged wastewater is not reused.
     systems to reduce the impact on the aquatic ecosystem          However, the quality of the wastewater meets SIER’s
     in each operational area. AKR also routinely inspects the      wastewater quality standards. The volume of wastewater,
     pipelines in the operational areas for any leaks or damages,   amounting to 10,000 m3 per month, is calculated based on
     and immediate repairs are carried out if any issues are        pollution load and monthly volume.
     found.
                                                                    In the JTT area, wastewater is directed to the Industrial
     AKR implements a regular water quality monitoring              Wastewater Treatment Plant (IPAL). The discharged
     program to ensure that effluent discharges do not exceed       wastewater is not reused either. The quality of the
     set limits and contribute to the restoration of hydrological   wastewater meets the standards based on the permit
     environments. This program includes monitoring chemical,       issued by the Ministry of Environment and Forestry.
     biological, and physical components of water and effluent      Wastewater treated by the IPAL and meeting the standard
     to ensure they remain within safe levels.                      quality will be discharged into the environment.

     Wastewater monitoring at AKR includes collection,              In JIIPE-BKMS, wastewater is treated at the company’s
     processing, and ensuring the quality standards of              WWTP before being directed to IPAL SIER. The quality
     wastewater before it is discharged. Routine monitoring is      of the wastewater complies with East Java Governor
     conducted to ensure that wastewater meets government-          Regulation No. 27/2013. Although the wastewater is not
     set environmental quality standards. This is tailored to the   reused currently, there are plans to recycle it using Brackish
     industrial sector of AKR’s activities and its subsidiaries.    Reverse Osmosis (BWRO).
     [GRI 303-1][303-2]
                                                                    If wastewater is not processed for reuse, any that meets
     In the APR area (Retail bp-AKR), wastewater is processed       environmental quality standards will be discharged into
     using a bio septic tank before being discharged. Based on      either the WWTP or public water bodies. All wastewater
     laboratory measurements conducted every semester, the          discharged into public water bodies from AKR’s operational
     quality of all wastewaters meets the parameters specified      units meets quality standards and is not reused by other
     in Minister of Environment and Forestry Regulation No.         organizations.
     68/2016 regarding wastewater quality standards. The
     volume of water is calculated using a flowmeter installed
     in the outlet flow of the bio tank.




                            A Look Inside the Water Treatment System at JIIPE
     JIIPE has a water and wastewater treatment facility known
                                                                                   SWRO Plant         Tanggok River
     as WWTP (Wastewater Treatment Plant) to process water
     taken from nearby rivers and recycle wastewater into raw
     water for the needs of tenants and operations in the area.
     All wastewater generated by JIIPE tenants is directed to            Tenant                                       WWTP
     the WWTP facility for processing and then redirected to
     the Mini Pond and WTP-Recycle to be reused by tenants.
     This system aligns with the zero-water run-off concept                       WTP-Recycle
     promoted by JIIPE, where no wastewater is discharged                          (BWRO)
     from the area and is fully reused by tenants and operational
     activities.
                                                                                                Mini Pond




                                                                                                            Mireng River




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Highlights                                                                                              and Compliance




Spill Response
[SEOJK F.15]

In handling spills, AKR’s operations and subsidiaries have       to preserve marine conservation areas by monitoring
operational standards in place to prevent, mitigate, and         and controlling waste from ships from being directly
manage spills if they occur.                                     discharged into the sea.

The effluent spill response at the JTT site is conducted         At ARUKI, quick and responsive handling of spills uses
in accordance with the INA-VTJ-SHEP-019 Emergency                absorbent media, such as sand or sawdust. ARUKI also
Preparedness and Response Plan. Efforts include                  implements spill prevention efforts by adhering to strict
inspection programs, equipment inspections, and spill            SOPs, conducting infrastructure maintenance, carrying
response system inspections.                                     out periodic checks on piping installations, and so forth.
                                                                 [SEOJK F.14] [SEOJK F.15]
At AST, spill response efforts are carried out with the
Shipboard Oil Pollution Emergency Plan (SOPEP). Before           From these various efforts, no significant spills occurred in
effluent spills into the sea, the Company monitors the           2023.
Bunker and Loading Cargo Operation processes, aiming             [SE OJK F.15]




         Innovations in Reducing Hazardous Waste at JIIPE Power Plant
Hazardous Waste, particularly sludge oil with code A332-         In 2023, the team successfully separated approximately
1, is one of the results of operational and maintenance          66.7 million m3 of water from the sludge oil waste. This
activities in the power plant engine. The high water             achievement not only reduces significant hazardous waste
content in this waste poses a particular challenge in its        volume but also provides economic and environmental
management.                                                      benefits. The innovation in hazardous waste reduction
                                                                 at the JIIPE Power Plant demonstrates potential for
The JIIPE Power Plant Operations Team has initiated              adaptation in various other industries and contributes
efforts to address this issue through an innovative program      positively to environmental conservation.
aimed at reducing the volume of hazardous waste by
separating the water content in the oily water sludge oil
from the power plant. The separation process is carried out
using filtration techniques. Sludge oil from the sludge tank
is directed to the filtration unit, where water is separated
                                                                 66.7 million m of water            3

                                                                 successfully separated from the sludge oil waste for further
and processed in the WWTP to reduce its COD levels.              processing at the JIIPE WWTP for reuse.




Solid Waste Management
For solid waste management, both non-B3 and B3 solid             Regarding domestic waste, primarily arising from water
waste, the Company implements the 3R principle (reduce,          usage, AKR processes it first in biotanks before discharging
reuse, recycle) and complies with relevant regulations,          it into water bodies. For the management of this waste,
such as Government Regulation No. 101 of 2014 regarding          third parties are used, who regularly collect organic waste
the Management of Hazardous and Toxic Waste. The aim             for processing according to the terms of the agreed
of this policy is to protect the environment from pollution      contracts.
and safeguard public health from the negative impacts of         [GRI 306-2]
waste.
                                                                 In waste generated by AKR, there are several categories
Waste generated by AKR’s activities includes domestic            classified as hazardous waste such as used B3 packaging,
waste, rainwater flowing through oil catchers located            used drums, used TL lamps, used batteries, used lubricating
on filling station bund walls and workshops, as well as          oil, rags, oily water, sludge oil, and used absorbents. AKR
waste from operational activities classified as both B3          collaborates with third parties in managing these types
and non-B3. AKR’s awareness of the potential waste               of hazardous waste, with some of them directed to final
from operational activities that may cause significant           disposal facilities.
environmental impacts has prompted the Company to
implement effective and responsible waste management
practices.




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     The methodology used to collect data involves counting waste collected at the Hazardous Waste Storage Facility (TPS
     LB3) and manifests from third parties.


     Total solid waste generated by disposal method
     [SEOJK F.13] [GRI 306-3] [GRI 306-4] [GRI 306-5]


                            Hazardous Waste (Ton)                           2023                2021                2022

      Final Disposal Site                                                           83.2               104.0                34.1

      On-site Storage                                                                0.0                 2.0                 2.0

      Third-party Disposal and Management of Hazardous
                                                                                   419.2               326.7               771.3
      Waste

      TOTAL (ton)                                                                  502.3               432.7               807.4


                         Non-Hazardous Waste (Ton)                          2023                2021                2022

      Reuse                                                                          1.0                 0.9                  0

      Recycle                                                                        1.8                  0                   0

      Composting                                                                     3.0                 3.0                  0

      Final Disposal Site                                                      1,469.2             2,768.1             1,403.5

      Onsite Storage                                                                 0.5                  0                   0

      Others                                                                       275.3               213.9               777.6

      TOTAL (ton)                                                              1,750.8             2,985.9             2,181.1




                                                 From Waste to Blessing
                                           JIIPE’s Efforts in Reusing Inorganic Waste

     The Issue of Waste: Turning Waste into Blessings                  Despite operating for only a few months, the 3R Area
                                                                       in JIIPE has shown significant achievements. From
     Waste management poses a significant sustainability               September to December 2023, the area has successfully
     challenge, particularly in industrial areas. The increasing       stored and utilized 895.49 kg of inorganic waste.
     volume of waste disposed of in landfills is the primary
     reason for the need for effective solutions. Efforts in waste     The 3R Area in JIIPE serves as a tangible example of how
     sorting, utilization, and recycling are key to reducing the       innovative solutions and sustainable commitments can
     burden on landfills and preserving the environment.               help address waste issues. By continuously developing and
                                                                       optimizing this program, AKR is optimistic in contributing
     In response to this challenge, AKR launched the 3R Area in        to creating a cleaner and more sustainable environment.
     JIIPE on August 30, 2023. This reflects AKR’s commitment


                                                                       895.49 kg
     to supporting a circular economy and reducing waste sent
     to landfills. The 3R Area in JIIPE is built with the purpose of
     serving as a temporary storage/shelter for inorganic waste
     and a trial site for utilizing organic waste.                     of inorganic waste were reused




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Highlights                                                                                           and Compliance




Biodiversity
[SEOJK F.9] [SEOJK F.10][GRI 304-1]

AKR is committed to comprehensive environmental               from carbon sequestration, these plantings aim to
management,       including    biodiversity conservation,     generate oxygen, prevent erosion, maintain soil fertility,
continually striving to preserve and protect ecosystems       and reduce air pollution.
and biodiversity in every operational area.
                                                              At the close of 2023, no operational locations existed
One tangible expression of this commitment is AKR’s           adjacent to protected areas or areas with high biodiversity
tree planting program in various operational locations,       outside of protected forest areas.
including JIIPE, JTT, ARUKI, and BP-AKR stations. Apart




                    Preserving Nature with Nature-Based Solutions

AKR is committed to conducting business that prioritizes sustainable principles while considering environmental
conservation. One manifestation is through the implementation of Nature-Based Solutions programs. AKR runs various
Nature-Based Solutions programs based on the awareness that nature plays a crucial role in maintaining ecological
balance and human survival. Environmental degradation can lead to various negative impacts, such as climate change,
natural disasters, and a decline in quality of life.



                                                                     Mangrove Planting at JIIPE


                                                              • 1,000 mangrove seedlings were planted in the Watershed
                                                                Area of Kali Mireng and Tanggok River.
                                                              • 100 other plants such as lamtoro (Leucaena leucocephala)
                                                                and pulai (Alstonia scholaris) were planted as part of the
                                                                greening program.



                                                                Mangrove Planting at Stagen Terminal (AKR)


                                                              • More than 300 mangrove seedlings were planted in the
                                                                area around Stagen Terminal dock.



                                                                      Tree Planting at JIIPE


                                                              • 1,280 plants, including pole trees, mangroves, trembesi,
                                                                pine, teak, as well as fruit trees such as durian, mango,
                                                                and avocado, were planted in the JIIPE area.

                                                              Total trees in the JIIPE area:
                                                              • 1,277 Taproot Trees
                                                              • 71 Fibrous Root Trees



                                                                      Tree Planting at ARUKI


                                                              • Planting of 500 new trees in 2023.




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     Environmental Compliance
     [SEOJK F.16] [GRI 2-27]

     AKR complies with all environmental regulations and legal standards applicable to its operations. With this commitment,
     AKR hopes to have a positive impact on all stakeholders. The Company actively monitors and adapts to any changes
     or updates in environmental regulations that may affect its business operations. Throughout 2023, AKR successfully
     conducted operational activities without receiving sanctions for violations or failures to comply with environmental
     standards.




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Sustainable       Company            Our Business       Our                Our                Our Conduct:
Performance       Profile            Portfolio          People             Communities        Governance, Ethics      89
Highlights                                                                                    and Compliance




Environmental Management Fund
[SEOJK F.4]

AKR’s Environmental Management Fund consists of permit issuance, environmental monitoring, environmental
campaigns, waste management, and employee training on environmental matters. By the end of 2023, AKR had allocated
and realized funds totalling Rp4.57 billion.



                     Category of Environmental Management Fund                                 2023 (Rp)

 Permitting                                                                                       1.836.400.000


 Monitoring                                                                                       1.243.898.610


 Environmental campaigns                                                                              63.846.400


 Waste management                                                                                 1.281.743.300


 Training                                                                                           143.518.475


 Total                                                                                            4.569.406.785




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Page 91
04
  Our
People

  www.akr.co.id
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           At AKR, Human Resources (HR) plays a crucial role in achieving
           sustainability, by supporting our personnel to continuously develop
           themselves, work hand in hand, and embrace a bright future together.


     AKR understands that achieving sustainability is not easy,     is hoped that these innovations and developments will
     needing the best resources to be agile and adaptive to         ensure employees can adapt to the increasingly rapid
     all conditions and challenges. Among all the required          changes in the business environment.
     resources, the human factor is the most as the employees
     bring the Company’s values to life and achieve targets.        In 2023, these developments have received positive
                                                                    responses, evidenced by the achievement of four awards
     Therefore, AKR is committed to the improvement and             at the prestigious Human Capital on Resilience Excellence
     development of Human Resources (HR) and a workplace            Award (HCREA) 2023, where the Company won 4-Star
     that supports the productivity of all. In practice, AKR’s HR   category awards including The Readiness HC, The Talent in
     Management has created, implemented, and developed             Management, The Most Resilient Company 2023, and The
     the best programs, in line with the Company’s needs. It        Best Leadership Development Focus in HC.




                                        AKR Raih Human Capital Award
     AKR Corporindo was recognized at the prestigious Human Capital on Resilience
     Excellence Awards 2023 held at the Menara Peninsula Hotel Jakarta, on Wednesday,
     July 5, 2023. The awards were themed “Resilient Human Capital with Global
     Competitiveness,” and organized by First Indonesia Magazine in collaboration with
     PT Indonesia Popular Mandiri.

     HCREA 2023 is an annual corporate rating event aimed at mapping out the
     issues and challenges amidst rapid digital transformation faced by human capital
     departments.

     The judging panel maps out the issues and challenges and awards are given
     to organizations that demonstrate outstanding performance and significant
     contributions to their respective industries.

     AKR received appreciation for its commitment to developing human resource
     talents to be agile in response to changes in the business environment, and was
     recognized as an adaptive and globally competitive company.




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Highlights                                                                                                        and Compliance




EMPLOYMENT
PRACTICES

2,813
Total AKR Employees in 2023


AKR prioritizes its employees, believing that well-being           of diversity, gender equality, human rights, labor rights,
and happiness are key to maximizing their contributions.           and workplace safety and security.
Therefore, when determining company policies, AKR
considers their welfare by upholding principles of                 At the end of 2023, the Company and all subsidiaries
transparency, equality, and fairness.                              registered 2,813 employees, consisting of 2,176 permanent
                                                                   and 637 temporary. Currently, the Company does not
The Company strives to build good industrial relations with        have a part-time employment scheme, and data on the
its personnel by fulfilling employees’ normative rights,           composition of employees by gender, education, age, and
manifested through the creation of a fair and inclusive            position can be found in the Annual Report on page 147.
work culture, as well as adherence to values and practices         [GRI 2-7] [GRI 2-8]



Total AKR Employees Based on Employment Status and Gender
[SEOJK C.3][GRI 2-7]

                                              2023                              2022                                 2021
         Description
                                     Male            Female             Male           Female              Male                Female

 Permanent                             1,902               274              1,651           282              1,719                   277

 Temporary                              492                145               618               94             538                       79

 Total                                 2,394               419              2,269           376              2,257                   356




                          Position                               2023           %       2022           %            2021            %

 Board of Commissioners                                                 3       0.1%           3       0.1%                3        0.1%

 Board of Directors                                                     7       0.2%           7       0.3%                7        0.3%

 Commissioner                                                           7       0.2%           8       0.3%                7        0.3%

 Director                                                           25          0.9%        32         1.2%             31          1.2%

 General Manager & Senior Manager                                   59          2.1%        51         1.9%             52          2.0%

 Manager                                                          137           4.9%      123          4.7%           115           4.4%

 Assistent Manager                                                148           5.3%      145          5.5%           126           4.8%

 Spv - Staff                                                      937          33.3%      776         29.3%           906         34.7%

 Operator                                                        1,490         53.0%     1,500        56.7%         1,366         52.3%

 Total                                                           2,813       100.0%     2,645       100.0%          2,613       100.0%




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     Total number of employees based on employment contracts (permanent and
     temporary), by region
     [GRI 2-7]

                                                                            2023                           2022
             Operational Regions of AKR and its Subsidiaries
                                                                  Permanent      Temporary      Permanent      Temporary

      Java                                                             1,355            625           1,342            547

      Sumatra                                                            161               3            158               3

      Kalimantan                                                         385               4            354               6

      Bali                                                                27               1             28               1

      Sulawesi                                                            77               2             49               5

      Ship Crew                                                          171               2              2            150

      Total                                                            2,176            637           1,933            712


     AKR provides equal opportunities for all employees           the development programs they need. The PDC will
     to develop their careers, whether through vertical           then determine which employees are deemed suitable
     development (advancement according to job level)             for specific positions, whether vertically, horizontally,
     or horizontal development (advancement in terms of           diagonally, or remaining in their current position with
     responsibilities, such as moving from a small branch to a    additional tasks or projects according to their future
     larger one). Career development processes are based on       career projections. In addition, the PDC can also determine
     the results of Performance Evaluation, which assesses the    succession planning as a continuous human resource
     achievement of KPI targets.                                  sustainability to support business continuity. Career
                                                                  development and placement based on employee needs
     Through the People Development Committee (PDC)               are prioritized from within the Company (promotion from
     process, employees have the opportunity to express           within).
     their career expectations and aspirations, as well as




     Applying Corporate Values
     Corporate values are the key guidelines for all AKR          resources at each branch, especially for operational roles
     employees, internalized and applied daily, and adding        such as Head of Tank Terminal (HoTT), HOLT, and Displan,
     value and meaning to work to drive success in tasks and      to ensure they can work effectively and in accordance with
     decision-making.                                             the Company’s Values.

     In implementing the Corporate Values Empower Your            A leader should be able to provide guidance, monitor,
     Team program, employee development at all levels was         coordinate, and provide technical support or training to
     a major target in 2023. AKR Management conducted             assist subordinates at each branch. It is hoped that with
     visits to branches to provide guidance and mentoring         this development support, leaders are encouraged to carry
     to employees, the aim of which was to assist human           out more intensive coaching and empowerment.




     Anti-Forced Labor Policy
     [OJK F.19] [GRI 409-1]


     AKR, along with all related corporate entities, strongly     AKR is also committed to building uncoerced work
     rejects the practice of forced labor within the Company,     relationships, where both parties are bound by a mutual
     adopting the regulations of Law No. 13 of 2003 concerning    agreement applied from the recruitment process, and
     Manpower and ILO Convention 1957 concerning the              through any promotions or employee transfers. Each party
     Abolition of Forced Labor, maintaining respect for human     clearly understands the rights and obligations that have
     rights in the workplace and in the implementation of labor   been agreed upon.
     practices.



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Highlights                                                                                                 and Compliance




Respect for Human Rights
[SEOJK F.18] [GRI 406-1]


Since its inception, AKR has respected and upheld Human            4. Treating all employees fairly and ensuring every
Rights (HR) in conducting its business activities. All efforts        employee receives equal opportunities and treatment.
are carried out in compliance with legal provisions and               In this regard, the company has implemented strict
human rights principles.                                              and consistent non-discrimination principles (based
                                                                      on gender, age, ethnicity, race, religion, intergroup,
All rules and policies implemented by AKR are based on:               marital status, disabilities, social position/class) in the
1. The Universal Declaration of Human Rights by the                   recruitment and HR management processes.
    United Nations,                                                5. Prohibiting child labor, forced labor, trafficking of
2. The Principles of Fundamental Rights in the Workplace              workers, and ensuring safe and healthy working
    based on the 8 Core Conventions of the International              conditions.
    Labour Organization (ILO),                                     6. Avoiding wage discrimination based on gender.
3. Law No. 39 of 1999 concerning Human Rights,                     7. Providing opportunities for all high-performing
4. The United Nations Guiding Principles on Business and              employees to rotate to other job areas or to be promoted
    Human Rights (UNGP) and the United Nations Global                 to higher positions.
    Compact (UNGC) Principles.                                     8. Striving to create and maintain a workplace free from
                                                                      harassment, intimidation, inhumane treatment, or
These established policies apply to all AKR employees and             other criteria protected by applicable laws.
every entity fully owned by the Company. Additionally,             9. Respecting and complying with the human rights of the
these policies are also applied to all AKR suppliers and              communities surrounding the Company’s operational
its subsidiaries to unequivocally prohibit forced labor or            areas, including recognizing and respecting community
coercion.                                                             identities, cultural diversity, needs and aspirations of
                                                                      potentially different communities, and different social
AKR has implemented strict and consistent non-                        practices and customs.
discrimination principles in HR management, by:
1. Providing freedom for all employees to express opinions         Responsibility and accountability for managing HR
   and suggestions, both collectively and individually.            issues lie with all management, unit leaders, and AKR
2. Providing channels for the reporting of complaints              employees. At the same time, the Company collaborates
   related to violations or incidents within the scope of          with stakeholders to implement these policies in every
   work.                                                           operational activity and strives to advance worthy
3. Conducting business and respecting Human Rights                 standards for positive changes in Human Rights practices
   and the dignity of all individuals in accordance with           at the operational level of the Company.
   existing legal requirements.




Ensuring Freedom of Association
[GRI 2-30]


AKR is committed to emphasizing and guaranteeing the               AKR firmly supports the right to freedom of association for
freedom of association for every worker through various            all employees, regardless of the existence of labor unions
mechanisms and communication channels that serve                   and believes that every worker has the right to express
as avenues for workers to express their opinions. No risks         their opinions, and form or choose not to join labor unions
related to freedom of association have been identified             in accordance with applicable laws.
across AKR’s operational areas.
                                                                   AKR also guarantees protection for all employees and
The Company received no reports related to cases of                workers through Company Regulations, which ensure that
curtailed freedom of association among AKR’s workers               their rights are respected and that the treatment provided
in 2023. Human rights, including the right to associate            is fair and equal. The Company is committed to fulfilling
and organize, are supported, ensuring that all employees           its responsibilities as a responsible employer, with a focus
and workers are treated fairly and in accordance with              on welfare and creating a balance between corporate
applicable laws, and can express their opinions without            interests and those of the employees.
fear of intimidation.
                                                                   AKR believes that openly listening to input and feedback
                                                                   from employees enables the achievement of shared
                                                                   goals and the creation of an inclusive, sustainable work
                                                                   environment that benefits all parties involved.




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     HEALTH &
     SAFETY
     [OJK F.21]



     AKR recognizes that safety, security, and environmentally        7. Conducting open and transparent communication
     friendly operations are key to long-term business stability.        and consultation about the Company’s environmental
     Therefore, the Company strives to protect the safety                policy to stakeholders including regulators, employees,
     and security of the workplace for employees and all                 customers, business partners, and other relevant
     stakeholders involved, including preventing workplace               parties.
     accidents, the onset of diseases in the workplace, and
     environmental pollution.                                         This policy applies to AKR employees and every Company
                                                                      entity, and is the responsibility of all stakeholders. The
     The Company is committed to complying with applicable            implementation of this policy is coordinated, monitored,
     regulations, following operational designs and standards,        and evaluated by the ESG Committee, then reported
     and monitoring the implementation of these with                  to the Board of Directors, Board of Commissioners, and
     reference to safety aspects and prevailing environmental         stakeholders through AKR’s Sustainability Report. The
     norms at each stage of operations.                               Company, together with all stakeholders, is committed to
                                                                      implementing this policy.
     Furthermore, AKR is also committed to providing
     adequate and reliable resources to support the continuous        AKR applies the highest standards in Occupational Health
     improvement of a safe, healthy environment by making             and Safety (OHS) with the ultimate goal of achieving
     the SHE policy a collective responsibility.                      zero accidents. AKR aims to create an OHS culture in all
                                                                      operational areas, which in turn can also improve the
     Continuous SHE improvement is carried out through the            Company’s productivity, performance, and success.
     following efforts:
     1. Compliance with all regulations and legislation related       To achieve this, AKR creates an excellent work environment,
         to Occupational Health and Safety, Operational Safety,       equipped with adequate infrastructure and supporting
         and Environmental Management applicable to the               equipment. This is aimed at enabling the Company’s
         Company’s business, and taking proactive steps aimed         employees and contractors to carry out their tasks with
         at surpassing these minimum requirements.                    optimal safety and comfort. All AKR facilities, including
     2. Identifying, evaluating, and managing environmental           tank terminals, ports, docks, trucks, tankers, barges, and
         risks associated with the Company’s operations, then         factory facilities, have met government safety standards
         preparing comprehensive emergency response plans             and relevant environmental regulations.
         to control and prevent the risks of incidents or accidents   [GRI 3-3]
         involving hazardous materials.
     3. Measuring       performance,     periodically    reviewing,   AKR’s SHE (Safety, Health, and Environment) program and
         and continuously improving Occupational Health               strategy are carried out in accordance with the applicable
         and Safety, Operational Safety, and Environmental            laws and regulations, which have been incorporated into
         Management.                                                  nationally and internationally recognized management
     4. Prioritizing responsible and sustainable waste                systems which are implemented and guided by, among
         management        in   accordance       with    applicable   others:
         regulations.                                                 1. Law No. 1 of 1970 concerning Occupational Safety.
     5. Continuously striving to reduce greenhouse gas                2. Law No. 23 of 1992 concerning Health.
         emissions and improve energy efficiency in all aspects       3. Law No. 13 of 2003 concerning Manpower.
         of the Company’s operations.
     6. Encouraging innovation and research in the
         development of environmentally friendly products,
         services, and processes.




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                            Safety is Our Way of Life
                      The aspect of Occupational Safety and Health(OSH) is a cultural aspect of daily
                                   activities at AKR and the responsibility of everyone.


AKR has established a dedicated department to handle                 4. Developing and maintaining management information
OSH, namely the SHE Department , whose tasks include:                   systems that support both documentation systems and
1. Facilitating the implementation of safety procedures/                OSH needs.
   standards to support the elements of the OSH                      5. Monitoring waste management within the Company’s
   management system.                                                   environment.
2. Monitoring     and   measuring     the   organization’s           6. Advising Management on crisis or emergency response.
   compliance level regarding OSH.                                   7. Maintaining good relations with the government and
3. Providing advice and ensuring that all OSH regulations               other bodies regarding OSH management information.
   and requirements are effectively implemented.                     8. Ensuring that firefighting, safety, security, and
                                                                        environmental control equipment types are available
                                                                        and functioning properly.




Health and Safety Management System
[GRI 403-1]



AKR has developed a Safety Health Management System                  All of AKR’s activities, both within and outside the
(SHE) based on workplace risk identification that is                 Company’s workplace, including transportation and travel
periodically reviewed and audited to ensure compliance               activities, are covered by the SHE management system.
with national and global standards and best practices.               The implementation of this applies to all employees,
The Company’s SHE management system consists of a                    including contractors performing work or present at work
hierarchy of policies, plans, Standard Operating Procedures          sites within AKR’s operational areas. The Company remains
(SOPs), and various programs, all of which are designed              responsible for contractor activities outside its operational
and implemented through the Hazard Identification, Risk              areas.
Assessment, and Risk Control (HIRARC) method.
                                                                     All AKR employees, including contract workers and
The Company’s SHE management system follows                          contractors involved in the Company’s management
applicable laws and regulations, namely:                             system, undergo internal SHE audits at both headquarters
• Law No. 13 of 2003 concerning Manpower,                            and throughout operational areas. SHE audits are
• Government Regulation No. 50 of 2012 concerning                    conducted internally and externally on contract workers
  Occupational Health and Safety Management Systems                  and contractors subject.
  (SMK3),
• Standards and criteria from various health and                     To measure and achieve the success of SHE performance,
  environmental certification bodies, including ISO 14001            a “Six Zeroes” is in operation, namely:
  and ISO 45001.


                         Zero Lost Time                               Zero Product                                   Zero Potential
    Zero Fatality                                Zero Cross Over                               Zero Spillage
                             Injury                                  Quality Problems                               Fatality Accident

                                                                                                                       Preventing
    Preventing            Preventing                                 Preventing issues          Preventing
                                                Preventing mixed                                                        potential
     accidents             workplace                                   that lead to a        product spillage
                                                   or mistaken                                                         workplace
  resulting in loss        accidents                                 decline in product       during loading
                                                    consumer                                                         accidents that
       of life.        resulting in loss of                                 quality           and unloading
                                                     requests.                                                      may arise in the
                              time.
                                                                                                                          field.




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     Risk Assessment of Occupational Health and Safety
     [GRI 403-2]


     AKR’s Occupational Health and Safety (OHS) risk               AKR’s OHS risk assessments are carried out by supervisors
     assessment is observes the Standard Operating                 in each relevant work area. These supervisors have
     Procedures (SOP), which adhere to ISO 45001 standards.        undergone HIRARC training and are familiar with
     AKR’s OHS SOP serves as the basis for implementing            applicable standards. The OHS risk assessment process
     ongoing workplace safety, which is continually evaluated,     at AKR is supported by the HSE Department, which
     adjusted, and improved to achieve higher safety standards.    has expertise in health and safety as well as OHS risk
     Compliance with these OHS SOPs is the responsibility of all   management.
     stakeholders, including employees, contractors, suppliers,
     business partners, and guests.                                The results of AKR’s OHS risk assessments, known as
                                                                   HIRARC documents, are reviewed and then approved
     In conducting assessments, the Company employs the            by top management in each subsidiary or business
     Hazard Identification, Risk Assessment, and Risk Control      unit. These documents are then communicated and
     (HIRARC) method, as well as the Job Safety Analysis (JSA)     distributed to all employees. The HIRARC documents serve
     process. The steps involved in conducting Job Safety          as the basis for identifying OHS control measures, such as
     Analysis (JSA) are as follows:                                developing work programs, standards, and being involved
     • Identifying activities and associated risks,                in monitoring progress and achievements of the Company.
     • Defining and categorizing hazards,
     • Assessing risks,                                            The HIRARC documents are also reviewed in situations of
     • Developing risk controls,                                   organizational changes, incidents, or specific emergency
     • Measuring the level of risk after implementing controls.    conditions. The identified occupational hazards and risks
                                                                   prioritized by the Company’s OHS program in 2023 include:
                                                                   1. Electric shocks
                                                                   2. Machine-related injuries during maintenance
                                                                   3. Falls or slips from working at height
                                                                   4. Chemical spills and splashes
                                                                   5. Fires
                                                                   6. Accidents during material and product delivery
                                                                   7. Cut wounds
                                                                   8. Heat stroke
                                                                   9. Traffic Accident




                                            Zero Tolerance
                                            in Building an Excellence Culture and Creating a Safe and Healthy Work
                                            Environment for Employees


                                            Zero Tolerance is the core value that must be pursued and practiced in every
                                            branch and business unit. Zero Tolerance means not compromising on unsafe or
                                            hazardous matters for AKR personnel. There are 5 (five) aspects implanted to form
                                            the Zero Tolerance culture in AKR’s work culture, namely:
                                            1. Discipline Enforcement
                                            2. Create Self-Improvement Plans
                                            3. Understand SOPs Well
                                            4. Consistently Pursue Targets
                                            5. Always Willing to Learn

                                            The Zero Tolerance practice is used by AKR Transport to hold the Driver of The
                                            Year event. This event is held as an appreciation for drivers who have successfully
                                            applied several criteria of excellence culture and K3 in their work. Drivers who
                                            implement Zero Tolerance have helped AKR Transport achieve zero accidents in
                                            its operational activities throughout 2023.




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Highlights                                                                                                   and Compliance




Health Service Facilities
[GRI 403-3]


In addition to focusing on safety, special attention is also paid to the health of all personnel. AKR and its subsidiaries ensure
the availability of occupational health services for all employees and workers, with clinics in each of its operational areas.
Each clinic is equipped with adequate healthcare professionals and regular health checks are conducted for all employees
to ensure they remain fit and healthy. The presence of health services supports efforts to prevent workplace accidents and
Occupational Diseases (ODs).




Person-In-Charge for OHS
[GRI 403-4]


Effective implementation of OHS management systems                  The Company also wants every individual to be aware of the
and programs at AKR its subsidiary entities is the target.          risks in their work processes, not solely the responsibility of
To ensure this, the Company has appointed a person-in-              the SHE team. All AKR personnel are expected to escalate
charge (PIC).                                                       issues to their superiors if there are actions that could
                                                                    potentially pose hazards or risks.
In the subsidiaries JTT and ARUKI, the Company has
a formal Health and Safety Committee Management                     In practice, the branch SHE team not only needs to conduct
Board (P2K3) established in accordance with applicable              audits of the implementation of Standard Operational
regulations. Meanwhile, in other AKR subsidiaries, we               Procedures (SOPs) and working instructions (WIs) but
have SHE (Safety Health and Environment) or OHS                     also needs to assess the risks that will occur if SOPs and
(Occupational Health & Safety) departments responsible              WIs are violated, and ensure that these are mitigated in
for managing OHS. This PIC is tasked with ensuring that all         accordance with HIRARC. The control measures to reduce
employees and contractors working within the operational            the risk level towards a safe point are applied through the
area are protected.                                                 5 levels of risk control as follows:


                                                      5 Levels of Risk Control


                                                            Elimination
                                                        Resource Elimination


                                                           Substitution
                                              Substitution of Equipment/Machinery/
                                                             Materials



                                                            Design
                                                                                                Protection
                               Reliability




                                                  Modification/Design of Safer
                                                Equipment/Machinery/Workplaces



                                                         Administration
                                                   Procedures, Rules, Training,
                                                   Work Duration, Hazard Signs,
                                                    Signage, Posters, Labels




                                                               PPE




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      Occupational Health and Safety (OHS) Training
      [GRI 403-5]




      2,622 people
      Total Participants of Occupational Health and Safety
      Training


      AKR and its subsidiaries understand the importance          AKR’s OHS training is led and delivered by internal experts
      of Occupational Health and Safety (OHS). Therefore,         as well as external trainers, with training categorized into
      comprehensive training is provided from the first day       general safety training, mandatory for all employees, and
      employees join the Company. This training is conducted      specific safety training, only provided to relevant employees
      continuously, and every employee must demonstrate           based on their job hazards and risks. Certification training
      sufficient understanding to identify hazards and risks in   is provided by accredited external trainers. The professional
      their work.                                                 OHS training team conducts audits and development to
                                                                  achieve improved work methods.


      In 2023, AKR provided the following OHS training:


                                      OHS Training Topics 2023                                     Number of Participants

       Confined space entry                                                                                   16

       Authorized Gas Tester                                                                                   8

       Basic Fire Fighting                                                                                   370

       Emergency Drill                                                                                       120

       Working at height                                                                                      50

       PPE Training                                                                                           37

       Isolasi Energy                                                                                         30

       Terwujudnya pekerja layak yg berbudaya K3                                                               2

       Penanggulangan TBC pd tempat kerja                                                                      3

       Dasar K3, penggunaan APD,tindakan darurat                                                              20

       kesehatan kerja pd tempat kerja                                                                        19

       Peningkatan kompetensi AK3 umum                                                                         3

       Sosialisasi Rekomendasi Angkutan B3                                                                     4

       K3 konstruksi,pesawat bejana tekan,pesawat tenaga produksi                                              8

       Strategi Pemenuhan K3 dlm business sustainably                                                          1

       How industry 4.0 & green technology inovation                                                           3

       Fire Fighting / Pelatihan Petugas Pemadam Kebakaran                                                    33

       Basic First Aid / P3K                                                                                  73

       Safety Operations Tank Terminal & Warehouse                                                           131




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                                   OHS Training Topics 2023                                    Number of Participants

 Permit To Work (PTW)                                                                                   132

 Lock Out Tag Out (LOTO)                                                                                167

 Incident Investigation                                                                                 100

 Risk Assessment (HIRADC)                                                                                93

 Safety Land Transport                                                                                  759

 Product Handling                                                                                       342

 Oil Spill Level 1 & 2                                                                                    8

 Loading Master                                                                                           2

 PROPER Training                                                                                         17

 Driver B3                                                                                               70

 IMDG Code                                                                                                1

 TOTAL PESERTA                                                                                         2.622




              AKR Conducts Refreshment for Head of Tank Terminal (HoTT)
On July 11, 2023, AKR held refreshment training for the Head     This training was conducted online by the Head of Tank
of Tank Terminal (HoTT), emphasizing the risks involved in       Terminal and Warehouse HO. Its aim was to enhance the
every process at the Tank Terminal. The potential risks were     awareness and understanding of the HOTTs, obligating
discussed from both financial and SHE (Safety, Health,           them to control and monitor the work processes at the
and Environment) perspectives. Additionally, mitigation          terminal.
steps were outlined, along with Emergency Response
procedures if such risks were to occur.




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          Advanced First Aid Training 2023 at AKR Surabaya
      After conducting basic first aid training       neck, chest, spinal injuries, burns, and
      programs in several cities in 2022, AKR         practical sessions on victim evacuation to
      organized intermediate level training in        the ambulance.
      2023. A total of 26 participants attended
      from various locations, including Head          Moreover,       instructors     alternately
      Office, Nilam Timur, Nilam Utara, ATI,          demonstrated       emergency      response
      Warehouse,    SPBKB     Manyar,    SPBKB        procedures, and participants practiced
      Duduksampean, SPBKB Widang, SPBKB               handling various emergency situations. At
      Babat, SPBKB Grati, SPBKB Tongas, and           the end of the session, participants were
      TNU.                                            divided into groups to conduct simulations
                                                      and evacuation practice exams. Each
      In collaboration with PMI Surabaya, the         group was given a different case, and
      training took a full day at the AKR Land        evacuation processes were performed
      Surabaya Building. In this Intermediate         using emergency staircases. Therefore,
      program, participants reviewed basic            not only skills and physical abilities were
      materials and were equipped with new            required but also teamwork.
      topics such as medical emergencies, head,




                                               Defensive Driving Course
      AKR recognizes that the root cause of issues in                 The second part of this training is In Cabin Assessment,
      transportation or road transport activities is driver fatigue   where participants undergo assessments inside the
      and behavior while driving. Therefore, the company strives      cabin during real trips/product deliveries. This is aimed
      to improve itself through Defensive Driving Course (DDC)        at observing and evaluating the application of defensive
      training. This training educates drivers to drive with high     driving by Land Transport Drivers, where drivers are
      skill and experience, coupled with a good attitude and          not only required to drive safely but also to comply with
      concentration.                                                  rules, respond well to incidents on the road, and mitigate
                                                                      potential risks during the journey.
      Safe driving heavily relies on a driver’s experience and
      mental attitude. Driving behaviors that can prevent             This training also covers Incidents in Land Transport and
      problems include being cautious not to injure others,           their main causes, presentation on the HATI Technique:
      being responsible, yielding, and being polite.                  See, Observe, Appear, Initiative, application of 3M: Observe,
                                                                      Understand, Comply, good and proper driving knowledge,
      Meanwhile, for Tank Terminals, training is conducted to         and driving in specific conditions, such as nighttime and
      increase awareness of the importance of compliance in           rainy weather.
      implementing SOP/WI. SOP/WI is created to ensure that
      operations run safely and prevent accidents or financial        The target participants of DDC are all RTSOs, Driver Mentors,
      losses.                                                         and Land Transport Drivers. These drivers are the frontline
                                                                      of AKR in delivering the products sold. The training was
      In 2023, AKR initiated the DDC New Module and organized         conducted at all AKR branches, including Jakarta, Medan,
      several DDC New Module training sessions for all drivers.       Palembang, Lampung, Bandung, Semarang, Surabaya,
      Launched at the beginning of the year, the DDC New              Bali, Palaran, Kalteng, Kalsel, and Buntok.
      Module is filled with new content and consists of two main
      parts.                                                          With the implementation of this DDC training, it is hoped
                                                                      that AKR drivers can have the skills, knowledge, and
      The first part is Inclass Training, which discusses incidents   capabilities to drive and achieve the 6 zero targets.
      that occur in Land Transport along with their causes,
      defensive driving techniques, and how to read Road
      Hazard Mapping (RHM).




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Highlights                                                                                                 and Compliance




                                                 Hearts and Minds
To foster harmonious relationships with its employees, AKR         AKR Palaran engages in Heart and Mind activities by
has a program called Heart And Mind. Various activities            visiting drivers and their families. Topics discussed include
organized within this program aim to enhance work                  employee absenteeism, microsleep incidents, speeding
motivation and to introduce health and welfare programs            and violations, and any other issues. During these activities,
to the families of the employees visited.                          messages are also conveyed to motivate drivers to improve
                                                                   their performance.
AKR aims for the well-being of its employees in line with
the Company’s growth. At the same time, efforts are                Meanwhile, AKR Semarang initiated an informal lunch as
always made to maintain the physical and mental health             a form of appreciation for drivers who have received the
of employees. After the implementation of medical                  Driver of the Month award. During this occasion, drivers
check-ups (MCU), AKR also conducts a series of activities          are encouraged to maintain their achievements.
to support employee health. For example, AKR Stagen
holds Physical Fitness Exercises every two weeks on Friday
before work. Meanwhile, AKR Medan conducts a Health
Campaign as a follow-up to the MCU results that have
been distributed.




              Implementation of Fatigue Management at AKR Transport
AKR Transport has implemented a Fatigue Management                 •   Encouraging open communication: creating an
System to ensure the safety of employees and the public                environment where all employees and workers can
in the Company’s transportation activities. The approaches             report fatigue-related issues to management. This can
include:                                                               be achieved by building open communication channels
• Establishing policies and procedures: related to Fatigue             and encouraging employees to report incidents.
    Management. These include guidelines for scheduling            •   Evaluation and adjustment: regularly evaluating the
    and rest periods, as well as rules for reporting incidents         effectiveness of the fatigue management system and
    related to fatigue.                                                making adjustments and improvements as needed.
• Providing training: to employees on the risks associated
    with fatigue and strategies they can use to overcome it.       By implementing a comprehensive fatigue management
    This training includes information on the importance of        system, AKR Transport can help ensure the safety of
    adequate sleep, nutrition, and exercise.                       employees and the public, while minimizing the risk of
• Utilizing technology: such as fatigue monitoring tools to        accidents and incidents caused by fatigue.
    track drivers’ working hours, which can provide warnings
    to Control Tower personnel and drivers when they are at
    risk of fatigue or drowsiness. Additionally, technology is
    used to schedule drivers with considerations that allow
    them to rest and recover.




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      Promoting a Healthy Lifestyle
      [GRI 403-6]


      In addition to providing education and training, AKR also makes efforts to promote a healthy lifestyle to improve employee
      health and work productivity. Every year, AKR conducts various programs to enhance the health quality of employees and
      prevent work-related illnesses. Some of the activities carried out in 2023 include:
      • Organizing regular health check-ups or medical check-ups (MCUs).
      • Providing vitamins and supplements.
      • Conducting Healthy Talks.




      Rp1.18 billion
      The Company’s investment in implementing MCU to
      reduce employees’ health risks.




                                     Concerned about Employee Health, AKR
                                      Holds Medical Check-Up (MCU) Event
      As a manifestation of its concern for employee health, from    As a follow-up to the MCU, several employees were
      July 17th to 21st, 2023, AKR held a Medical Check-Up (MCU)     directed to undergo further examinations and some of
      event. This activity took place at the headquarters and all    them needed treatment. The results of this MCU were
      AKR branch offices in Surabaya, Pontianak, Banjarmasin,        also used in collaboration between the HR team and the
      Bitung, Stagen, and Bali.                                      NetOps team, particularly in the Fit to Work process, which
                                                                     is a health check for Land Transport drivers. The Fit to Work
      During this MCU, employees underwent blood and urine           process is conducted before employees drive AKR trucks.
      tests. These examinations revealed blood lipid metabolism,     Intensive monitoring is needed for conditions such as
      blood sugar levels, HBsAG, kidney and liver function, as       hypertension, high cholesterol, and high blood sugar.
      well as other health conditions. Additionally, there were
      eye health examinations, BMI measurements, thoracic            AKR encourages every employee to follow up on the results
      x-rays, heart examinations (EKG) for employees aged 35         of this MCU by consulting a doctor, undergoing necessary
      and above, and consultations with doctors.                     treatment, changing their diet, and also adopting a
                                                                     healthier lifestyle. Above all, what is equally important
                                                                     is how employees can be disciplined in carrying out all
                                                                     their activities, so that their health can be continuously
                                                                     maintained.




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Highlights                                                                                             and Compliance




                                                                Smart Choices for a Healthy
                                                                Lifestyle
                                                                Employee health is crucial for the Company as sick
                                                                employees will undoubtedly disrupt performance and
                                                                productivity. Therefore, employee health must always
                                                                be maintained, considering that unhealthy lifestyles can
                                                                be adopted by anyone, such as being lazy to exercise,
                                                                consuming sugary foods, smoking, lack of sleep, and so
                                                                on. All of these tendencies tend to lead to degenerative
                                                                diseases such as diabetes, high cholesterol, high blood
                                                                pressure, uric acid, cancer, and so on.

                                                                Currently, the Ministry of Health of the Republic of
                                                                Indonesia also urges the entire population to adopt a
                                                                healthy lifestyle through the initiation of the CERDIK
                                                                movement, which includes:




                   C               E                R             D                 I             K
                 Regular        Eliminating       Regular       Balanced        Adequate        Managing
                  health         cigarette        physical        diet            rest           stress
                check-ups          smoke          activity


In line with these recommendations, AKR encourages employees to truly be able to maintain their health, so that they can
experience various benefits such as strong immunity, better quality of life, reduced risk of illness, and caring for mental
health.




Prevention and Mitigation of Occupational Health and
Safety Impacts
[GRI 403-7]


In carrying out operational activities, the risk of workplace accidents will always exist. Therefore, AKR strives to prevent
significant workplace incidents. Various efforts to prevent accidents have been made by mitigating the impacts of
operational activities. In practice, each of AKR’s subsidiaries has consistently implemented OHS incident monitoring,
which includes information about incidents, causes of incidents, corrective actions, and follow-up on the implementation
of corrective actions.




Workers Covered by the Occupational Health and Safety
Management System
[GRI 403-8]


The Occupational Health and Safety Management System not only protects AKR employees but also includes all workers
in operational areas, including contractors working within AKR’s operational areas who are also covered by the OHS
management system. In addition to employees, contractors are also required to implement safe work practices, comply
with all occupational health and safety policies and procedures, and report any safety hazards or unsafe work practices.




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      Health and Safety Performance
      [GRI 403-9]


      The policies, strategies, systems, and various occupational health and safety programs consistently implemented
      throughout AKR’s operational areas achieved excellent performance statistics in 2023, as follows:


                   Worked Hours
                       (YoY)*
                                     7,205,273



                      4,253,246                         AKR Land Transportation
       4,131,534
                                                                                                              TRIR 2023
                                                       34.31 million KM                                        0.28
                                                       Safe Distance Traveled (Cumulative)
                                                         *Cumulative data up to the end of 2023

         2021           2022           2023

      *Excluding working hours data from BMS




      Total Frequency and Categories of Workplace Accident Incidents

                                                 Types of Accidents                                           2023        2022

       Fatal Accidents                                                                                         0           0

       Serious Accidents                                                                                      10          11

       Moderate Accidents                                                                                      0           2

       Minor Accidents                                                                                        22          43

       Near Miss Incidents                                                                                    93          21




      Occupational Diseases
      [GRI 403-10]


      AKR has implemented various efforts to improve                          •   Chepalgia
      occupational safety and prevent work-related diseases.                  •   Hypertension
      Throughout 2023, these efforts yielded excellent results                •   Gastrointestinal issues
      with no cases or fatalities due to work-related diseases.               •   Myalgia
                                                                              •   Vertigo
      AKR has identified major Occupational Diseases (ODs)                    •   Pneumonia
      that are of concern to the company, namely:                             •   Irritation
                                                                              •   COVID-19
                                                                              •   Lung diseases
                                                                              •   Contact dermatitis
                                                                              •   Musculoskeletal disorders




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Highlights                                                                                           and Compliance




EMPLOYEE ENGAGEMENT,
DIVERSITY & INCLUSION
Diversity and inclusion, upheld by AKR, have become           Work-life Balance
integral parts of the Company’s values, strengthening         [SEOJK F.21]
sustainability performance. With diverse backgrounds, all
employees, from entry-level to management, have equal         The Covid-19 pandemic has taught the world to always
rights to engage, express opinions, work, and innovate.       be prepared and adaptable to change. This ability must
AKR’s inclusivity policy also encourages the diversity of     be continuously maintained because challenges will
officials, based on gender, educational background, and       always arise. To withstand any condition, a balanced life
age groups.                                                   is necessary. Therefore, AKR is committed to maintaining
[SEOJK F.18]                                                  a balance between employees’ personal and professional
                                                              lives, as individuals can only work and deliver optimal
                                                              results when the balance in their lives is fulfilled.




                                           AKR Group Activities
The Latin expression, “Mens sana in corpore sano” (A healthy mind in a healthy body), is applied in activities across all
subsidiaries of the AKR Group, encouraging employees to engage in physical activities to achieve a balance between
physical and mental health, with employee-organized activities fully supported by the Company.



                                                Banjarmasin Branch Activities
                                                The Banjarmasin branch office regularly organizes badminton and futsal
                                                activities for its employees. Badminton is held every Friday, futsal every
                                                two weeks, and both activities are positively responded to by employees
                                                to maintain physical health and relieve work stress.




                                                Celebrating August 17th
                                                After being discontinued in 2020, sports competitions in celebration of
                                                August 17th have once again been held at AKR’s headquarters. Badminton
                                                and futsal are the main sports but branches are given the freedom to
                                                organize other competitions according to the local employees’ interests.




                                                AKR Participates in Friendship Futsal Match
                                                AKR engaged in a friendly football game with Asahimas Chemical (ASC),
                                                eventually won by Team ASC. Following the match, a communal meal was
                                                shared together at the venue.




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                                                       Running Together with DPR using the STRAVA Application
                                                       AKR organized a running event together with the DPR (House of
                                                       Representatives) using the STRAVA application, which strongly supports
                                                       the achievement of running goals.

                                                       This program sets a target of 10 km every 2 weeks, or 250 km per year, with
                                                       the number of participants reaching the target increasing from 65% in
                                                       2022 to 90% in 2023. Those who didn’t reach the target had to participate
                                                       in a Sharing Session Event and become part of the event committee.


                                                       Hiking Together
                                                       Nature enthusiasts from the Control Tower Team, IT Team, and AST Team
                                                       of AKR Headquarters in Jakarta organized a hiking trip to climb Mount
                                                       Ciremai, which stands at 3078m above sea level. The hikers departed on
                                                       Friday after work and returned home on Sunday, fostering camaraderie
                                                       among all participants.




      Recruitment and Employee Turnover
      [GRI 401-1]


      AKR recognizes that recruitment is a priority in supporting     The current recruitment process is digital, in place since
      sustainable growth. Therefore, newly recruited talent must      2020. By utilizing technology and social media, the process
      meet the needs, qualifications, and also understand and         begins with candidate search activities through digital
      align with the Company’s culture and values.                    media (e-sourcing). Subsequently, interested candidates
                                                                      can directly submit their applications through AKR’s career
      Recruits must fully understand their responsibilities and       website, linked to e-recruitment. Data from the applicants
      commit to growing with the Company. Additionally, AKR           is then directly integrated into the Human Resources
      must ensure to acquire employees who not only have              Information System (HRIS). The recruitment team also uses
      the right skills but also have attitudes that align with the    social media platforms such as LinkedIn and Instagram to
      Company’s values.                                               disseminate information about job vacancies.
                                                                      [SEOJK F.18]
      Filling vacant positions will first be offered to internal
      candidates. However, if the employee evaluations show           As of December 31, 2023, the Company has a total of
      that there are no internal candidates who meet the              2,813 employees, including contract employees. This
      required competency standards, AKR will conduct an              number increased by 200 compared to the previous year,
      open and transparent recruitment process to the general         totaling 2,613 individuals. In 2023, AKR recruited 485 new
      public. All applicants have equal opportunities without         employees, consisting of 412 males and 73 females.
      discrimination based on gender, ethnicity, race, or religion,
      as long as they meet the competency requirements set.




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Highlights                                                                                                            and Compliance




Recruitment of New Employees Based on Gender
[GRI 401-1]

                         Description                        2023               %            2022           %           2021             %

 Male                                                         411                85%         371          84.5%           399         89.5%

 Female                                                           73             15%            68        15,5%             47        10.5%

 Total                                                        485             100%           439          100%            446       100.0%



Recruitment of New Employees Based on Age Groups
[GRI 401-1]

                            Description                               2023           %        2022             %         2021           %

 Age below 30 years                                                    249           52%           276      62.9%          218          49%

 Age 30-50 years                                                       212           43%           150      34.2%          227          51%

 Age above 50 years                                                     24             5%            13        3.0%             1           0%

 Total                                                                 485         100%            439        100%         446         100%



Recruitment of New Employees Based on Region
[GRI 401-1]

              Company                     Region           2023              %           2022             %            2021            %

 AKR                              Java                        53             10.9%            72          16.4%           249         55.4%

                                  Sumatra                     18              3.7%            12           2.7%            17           3.9%

                                  Bali                            0           0.0%              0          0.0%               0         0.0%

                                  Kalimantan                  82             16.9%            47          10.7%            25           5.7%

                                  Sulawesi                    29              6.0%              7          1.6%               8         1.8%

                                  Ship Crew                  152             31.3%           115          26.2%               0         0.0%

 JTT                              Jawa                            4           0.8%              4          0.9%               4         0.9%

 JIIPE - BKMS                     Jawa                        22              4.5%            15           3.4%            14           3.2%

 JIIPE-BMS                        Jawa                            7           1.4%              2          0.5%               3         0.7%

 APR                              Jawa                       111         22.9%               156          35.5%           117         26.8%

 DPR                              Jawa                            2           0.4%              3          0.7%               3         0.2%

 ARUKI                            Jawa                            5           1.0%              6          1.4%               6         1.4%

 Total                                                       485        100.0%               439      100.0%             446        100.0%




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      A driver for recruitment process is vacant positions resulting from employees resigning. In 2023, AKR also experienced
      employee turnover (turnover is defined as the process where employees leave the Company voluntarily). The turnover
      ratio for the Company in 2023 was 1.5%, with a total of 485 employees resigning, consisting of 412 male employees and 73
      female employees.


      Turnover Rasio 2023
      [GRI 401-1]


      1.5%
      Employee Turnover Based on Region
      [GRI 401-1]

                  Company                       Region                 2023            %             2022            %

       AKR                           Java                                     93        23.4%            125          29.6%

                                     Sumatra                                  15           3.8%             21           5.0%

                                     Bali                                      1           0.3%              1           0.2%

                                     Kalimantan                               63        15.9%               56        13.3%

                                     Sulawesi                                 14           3.5%              8           1.9%

                                     Ship Crew                             174          43.8%            148          35.1%

       JTT                           Jawa                                      7           1.8%              4           0.9%

       JIIPE - BKMS                  Jawa                                     10           2.5%             11           2.6%

       JIIPE-BMS                     Jawa                                      0           0.0%              2           0.5%

       APR                           Jawa                                     11           2.8%             37           8.8%

       DPR                           Jawa                                      3           0.8%              2           0.5%

       ARUKI                         Jawa                                      6           1.5%              7           1.7%

       Total                                                               397        100.0%             422        100.0%



      Overall, the turnover ratio of the Company has remained relatively stable over the past two years and a healthy turnover
      ratio is typically below 10%. The low turnover ratio at AKR is attributed to the support of various employee engagement
      programs and human resources development strategies implemented by the AKR People Development Department.




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Highlights                                                                                                                     and Compliance




Employee Benefits
[OJK F.20][GRI 401-2]


Based on their employment status, AKR employees are categorized into permanent and non-permanent/contractual
employees. The difference in status affects the benefits received as part of employee remuneration. Below are the benefits
provided to full-time employees, which are not provided to temporary or part-time employees:

                                 Allowances                                           Permanent Employees                   Contract Workers

 Religious Holidays                                                                                   √                             √

 Welfare                                                                                              √                             √

 Income Tax                                                                                           √                             √

 Housing                                                                                              √                             √

 Transportation                                                                                       √                             √

 Life Insurance                                                                                       √                             √

 Healthcare Coverage                                                                                  √                             √

 Maternity Leave                                                                                      √                             √

 Meals                                                                                                √                             √

 Position                                                                                             √                             √

 Vehicle                                                                                              √                             √

 Fuel                                                                                                 √                             √

 Communication                                                                                        √                             √

 Pension                                                                                              √

Note:
For information on the allowances provided by each of AKR’s subsidiaries, please refer to page 124.



Employee Benefits Policy
In addition to meeting the Provincial/City Minimum Wage requirements, AKR also pays attention to the welfare of its
employees. The Company provides various allowances and facilities to both permanent and non-permanent (contractual)
employees:


Allowance Regulations for Permanent and Non-Permanent Employees at AKR

  No.                                            Allowances                                                 Permanent              Temporary

           Health benefits are provided based on the level and length of
   1.                                                                                                            √                       √
           service of each employee.

           Pension benefits are provided to employees who have worked for 15
   2.                                                                                                            √                        -
           years or more and have reached retirement age (55 years).

                                                                                                                √
                                                                                                                                       √
           Vehicle ownership program, based on the policy of each division                                Based on level,
   3.                                                                                                                               Leased,
           and depending on the length of employment.                                                     and length of
                                                                                                                                 based on level
                                                                                                             service




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       No.                                   Allowances                                     Permanent              Temporary

                                                                                                 √                      √
                                                                                          For employees          For employees
               Housing allowance is provided for employees stationed outside the
        4.                                                                              placed outside the     placed outside the
               city as well as for foreign workers.
                                                                                         hiring point and       hiring point and
                                                                                         foreign workers        foreign workers

                                                                                                  √                      √
               Meal and transportation allowances are provided up to the
        5.                                                                                For specific job       For specific job
               supervisor level.
                                                                                               titles                 titles

                                                                                                 √                     √
               Communication device and credit card allowances are provided for
        6.                                                                               For specific types    For specific types
               certain divisions.
                                                                                              of work               of work

               Paid leave for 12 working days (will increase with length of service,
                                                                                                  √                     √
               up to a maximum of 20 working days).
        7.                                                                               After 12 months of    After 12 months of
                                                                                                work                  work
               *Leave is not an allowance.

               Maternity leave for 3 months for female employees who give birth.
        8.                                                                                                              √
                                                                                                 √
               *Leave is not an allowance.

               Leave days for special events such as death, circumcision, baptism,
        9.                                                                                       √                      √
               graduation, childbirth, and others for employees.

               Membership in the Workers Social Security Agency (BPJS
        10.                                                                                      √                      √
               Ketenagakerjaan, formerly known as Jamsostek).

               Old-Age Security Program provided by the Workers Social Security
        11.                                                                                      √                      √
               Agency (BPJS Ketenagakerjaan, formerly known as Jamsostek).




                                                       JAMSOSTEK DAY
      On September 6-7, 2023, AKR welcomed the Office of                AKR employees and employees from other tenants were
      Social Security Administration (BPJS) for Employment              able to visit the available booths to receive explanations
      in West Jakarta. During their visit, BPJS for Employment          about the JHT (Old Age Insurance), Pension Insurance, Job
      conducted a socialization session regarding employment            Loss Insurance, Accident Insurance, Death Insurance, as
      matters at AKR Tower, providing information on various            well as the BPJS for Employment mobile application, JMO.
      Jamsostek programs.




      Maternity Leave
      [GRI 401-3]


      Maternity leave is a right for all AKR employees, regulated       During 2023, the number of female employees who took
      by Manpower Law and adopted by Company Regulations.               maternity leave was recorded as 15 individuals. Out of this
      Through the provision of maternity leave, employees               number, 15 individuals or 100% have returned to work and
      can prepare for the birth process properly. The Company           are still employed 12 months after their leave period ended.
      provides 3 (three) months of maternity leave for female
      employees, and 3 (three) days for male employees.                 Meanwhile, male employees who took leave to accompany
                                                                        their wives during childbirth numbered 6 individuals or
                                                                        100% of the total employees who took maternity leave,
                                                                        and all male employees have returned to work and are still
                                                                        employed 12 months after their leave period ended.


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Highlights                                                                                                 and Compliance




Management & Industrial Relations
[GRI 402-1]


An industrial relations policy is a necessity for AKR to ensure     In practice, the Company regularly holds various
business continuity, create a conducive work environment,           communication forums to discuss various aspects related
provide pride to workers, and build a positive reputation in        to industrial relations. The aim is to maintain positive
the eyes of external parties. Creating harmonious industrial        relationships, freedom of expression, and openness in
relations is an effective way to improve working conditions,        sharing information. In situations of significant operational
productivity, competitiveness, and job quality, besides             changes in the business. The Company is committed
serving as an indicator of Good Corporate governance.               to providing a minimum of 1-month notice before any
                                                                    change occurs, in accordance with regulations and
AKR is committed to continuously improving employee                 applicable legal provisions, as stipulated in the Collective
welfare by ensuring the fulfillment of all normative rights         Labor Agreement (CLA).
in accordance with applicable laws and regulations. AKR
consistently builds relationships of mutual respect with all
employees and workers.




       Consolidation Meeting on Company Vision and Strategy for 2023
On March 27, 2023, in order to enhance collaboration and closer cooperation, the Company took the initiative to hold
a Regional Meeting, attended by all Divisions and Regions, at the AKR Headquarters. This meeting was important to
continue fostering collaboration and key to the Company’s success. All Heads of Branches and relevant Department
heads gathered to discuss strategies and action plans together. They are expected to continue fulfilling their roles and
responsibilities effectively, so they can actively participate in achieving common targets.




Monthly Communication Media with                                    For example, the Company uses the theme “Zero
Company Values Theme                                                Tolerance” to convey Occupational Health and Safety
                                                                    values. Additionally, the Human Resources Department
In fostering Company values and workplace culture, AKR              disseminates information about Company values to
continued its communication efforts through the Digital             employees through email, the internet, and WhatsApp
Business and Communication Division under the Human                 messages.
Resources Department. The Company regularly issues
newsletters to convey information about activities, while
providing opportunities to educate employees about
Company values through relevant themes at that time.




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      NON-DISCRIMINATION
      AND EQUAL OPPORTUNITIES
      [SEOJK F.18]



      AKR upholds the principles of non-discrimination and equal opportunities, where everyone has an equal opportunity to
      work and develop their career without discrimination or favoritism.




      Employee Salary Ratio with Minimum Wage Standard
      [SEOJK F.20][GRI 202-1]


      The welfare aspect of employees is a primary concern for AKR. As such, the Company adopts government regulations
      related to employee wages, including new employees (entry level). These regulations include adjusting the salary in line
      with inflation rates and meeting regional minimum wage standards (UMR) in each operational area, in accordance with
      applicable regulations.




      Equal Opportunity and Chance
      [SEOJK F.18][GRI 405-1]


      AKR provides equal opportunities regardless of gender,              male labor such as tank terminal operators, ship crews,
      ethnicity, religion, race, class, gender, or physical condition,    truck drivers, and safety officers, the composition of the
      applied from the employee recruitment process onwards.              Company’s human resources is predominantly male.
      Appointments of prospective employees are based on the
      results of selection, evaluation during the probationary            In 2023, women held 24% of the middle to upper
      period and worker orientation, providing equal                      management positions at AKR. This percentage indicates
      opportunities to everyone.                                          that AKR continues to uphold gender equality, including
                                                                          for those holding important positions, as seen in the
      Due to AKR’s business activities in the logistics supply            following table:
      chain sector, which at the operational level requires               [GRI 202-2]


      Gender Diversity Based on Job Level

                                                                                2023                2022                2021
                   Gender Diversity Based on Job Level
                                                                         Male      Female    Male      Female    Male      Female

       Board of Commissioners                                                3           -        3          -        3          -

       Board of Directors                                                    4          3         4         3         4          3

       Commissioner-level Officials                                          7           -        8          -        7          -

       Director-level Officials                                            20           5       28          4        28          3

       General Manager- Senior Manager                                     50           9       39         11        41        11

       Manager                                                            102          35       89         34        85        30

       Assistant Manager                                                  109          39      112         33        97        29

       Supervisor – Staf                                                  995          294     605         177     723         183

       Operator                                                          1,103          35   1,381         114    1,269         97




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Highlights                                                                                                    and Compliance




Age Diversity Based on Job Level

                                                2023                             2022                             2021
              Position                         30-50                             30-50                            30-50
                                     <30 th                 >50 th      <30 th              >50 th   <30 th                  >50 th
                                                th                                th                               th

 Board of Commissioners                    -           -         3           -          -       3         -              -          3

 Board of Directors                        -           -         7           -          -       7         -              -          7

 Commissioner-level Officials              -          3          4           -       3          5         -            1            6

 Director-level Officials                  -          10       15            -     14          18         -           13           18

 General Manager- Senior
                                           -          29       26            -     32          19         -           32           20
 Manager

 Manager                                   -      118          23            -    108          15         -         101            14

 Assistant Manager                        9       121          18          14     115          16        8          103            15

 Supervisor – Staf                     633        614          42         191     543          42      265          602            19

 Operator                              242        775         121         626     780          94      418          838            110




                       Commitment to Support Gender Equality,
                 Jakarta Tank Terminal Targets 23% Female Employees
                                                           [OJK F.18]

Jakarta Tank Terminal (JTT) is committed to achieving             To achieve the target of 23% female employees, JTT is
gender equality in the workplace. One concrete step taken         taking several strategic steps, including:
has been setting a target of 23% female employees. JTT’s          1. Providing equal job opportunities for all genders: JTT
target is higher than the global average of women working            adopts a fair and inclusive recruitment policy, without
in the transportation and logistics sector, which is 22%             discrimination based on gender. JTT also ensures that
(International Transport Forum Report, 2018).                        the selection process is conducted objectively and
                                                                     based on relevant qualifications and work experience.
Currently, the composition of female employees at JTT has         2. Providing equal training and development opportunities
reached 21% and AKR strives to increase the number of                for all employees: JTT ensures that all employees,
female employees to achieve the established target.                  including female employees, have equal opportunities
                                                                     to participate in the training and development needed
JTT’s commitment to gender equality is an important                  to advance their careers. This can help female employees
step that can benefit all parties, both employees and the            improve their skills and knowledge, enabling them to
Company. By creating an inclusive work environment and               take on more strategic roles in the Company.
embracing diversity, AKR can enhance employee creativity,         3. Increasing awareness of gender equality in the
innovation, and productivity. Moreover, increasing the               workplace: JTT continues to raise awareness of the
number of female employees can also strengthen the                   importance of gender equality in the workplace through
Company’s long-term sustainability and stability.                    training, discussions, and socialization conducted at all
                                                                     levels of the organization. The Company also promotes
                                                                     an inclusive work culture that embraces diversity, so
                                                                     that all employees feel accepted and valued.




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                                                        AKR Woman Leaders




                                     Melyati Yuwono                                                     Erpiny Tan
                                     Deputy Tax & Accounting                                            Deputy Network & Operations II




      At AKR, working is an enjoyable and noteworthy journey, fostering      The most fulfilling aspect of my tenure at AKR is the chance to
      both learning and career advancement. I’m motivated to be              collaborate with individuals who are not only proficient in their
      proactive and creative, while adhering to SOPs and guidelines. The     respective domains but also compassionate and authentic.
      atmosphere promotes open dialogue, enhancing every interaction,        AKR allows me to improve my skills and find the best version of
      while the company’s strong focus on employee wellbeing, through        myself by providing the best place to learn, work and grow across
      incentives and support during challenging times, underscores that      functions and departments. Gender poses no barrier for me to
      AKR is more than just a workplace; it’s a big family to me. I also     develop professionally and collaborate with diverse teams in
      appreciate the value and celebration of diversity within AKR, which    shaping policies and driving continuous improvements at AKR
      provides an inclusive environment with no gender, race, or religious
      discrimination. For me, AKR is a place where competence comes
      first and every shared moment is an opportunity to celebrate
      togetherness




                                     Siswatiningsih, ST                                                 Paula V. Bombong
                                                                                                        Director of Finance PT Jakarta Tank
                                     Manager Produksi Adhesive ARUKI
                                                                                                        Terminal




                                                                             At AKR-JTT, I experience a nurturing family environment where
      Being a member of PT ARUKI’s extended family fills me with
                                                                             every employee’s voice is genuinely acknowledged, notably through
      gratitude and pride. Over my 23 years of tenure, I’ve consistently
                                                                             the constructive Employee Engagement Survey. Our contributions
      been provided opportunities for personal and professional growth.
                                                                             are valued, and our feedback is acted upon with tangible measures.
      Currently, I have the privilege of leading a team of 40 individuals
                                                                             Safety holds utmost importance, instilling a sense of security
      within the Adhesive Production Department. I am confident
                                                                             while working in Tanjung Priok. The company establishes clear
      that with a good working environment and employees who
                                                                             expectations and offers guidance on achieving them, allowing
      support each other, PT. ARUKI will grow into a leading adhesive
                                                                             room for learning from mistakes. The array of growth opportunities
      manufacturing company in Indonesia and increasingly worldwide.
                                                                             is expansive, with ample training opportunities tailored to our roles,
                                                                             including a scholarship program for eligible individuals and access
                                                                             to online coaching. This supportive environment has facilitated my
                                                                             professional and personal development tremendously.




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                          R. Ayu Yayuk                                                            Dewi Djunaidi
                          Dwihastuti                                                              Director of Finance PT BMS
                          External Relation and Sepcial
                          Economic Zone Director



Working at PT Berkah Kawasan Manyar Sejahtera (BKMS),                   As a female leader, I firmly believe that challenges and
overseeing the Gresik SEZ or JIIPE - Java Integrated Industrial         opportunities are interlinked. BMS places great importance on
and Ports Estate and being part of the AKR Group, has been a            the reliability and competence of its employees as the bedrock for
very challenging and exciting experience. Here, I’ve witnessed          sustainable success. We persist in fostering innovation and offering
how a company with immense growth potential offers equal                opportunities for potential talent to develop collectively.
opportunities for all employees to grow and advance their careers
together. BKMS is fully dedicated to promoting gender equality          At BMS, we prioritize gender equality within our workplace.
and fostering a supportive and inclusive work environment for           Every year, BMS strives to increase the representation of female
women through various inclusive career development initiatives.         workers by bringing in female workers to support BMS business
                                                                        development. It is BMS’ commitment to eliminate gender bias and
As one of Indonesia’s premier SEZs, BKMS continually endeavors          discrimination in the workplace. We are committed to creating an
to enhance its standards and maintain its excellence by attracting      inclusive work environment, where diversity supports innovation
top talents and professionals, irrespective of gender. The open and     and productivity
inclusive work culture instills a sense of comfort and appreciation
among women employees like myself. BKMS is not only a fun
place to work, but a place where we women can work and build
our careers wholeheartedly, with ample room for growth and equal
opportunities for everyone to progress together as the company
evolves.




                                               Empowering Disability
In order to implement inclusive practices and uphold equality in its operations, the company has recruited employees
with disabilities. For the company, this recruitment is not just about fulfilling legal obligations, but also represents a
valuable investment for the long-term sustainability and success of the company in terms of innovation, diversity, and
social responsibility.




JTT Employs 1 Employee with Disabilities                                APR Employs 1 Employee with Disabilities
JTT currently employs one person with disabilities, who is              APR currently employs one person with disabilities at
responsible for managing the garden in the JTT workplace                the front-line service. This employee directly serves the
environment.                                                            community members who wish to refuel at the gas pump
                                                                        station.




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      Gender-Based Remuneration Ratio
      [GRI 405-2]


      AKR and its subsidiaries do not differentiate between gender in their remuneration policies. Every employee, regardless of
      gender, receives the same fair ratio, which is 1:1. The amount of remuneration is determined through a series of processes
      that consider competence, experience, performance achievements, and responsibilities.




      Discrimination Incidents and Remedial Actions Taken
      [GRI 406-1]


      AKR provides facilities and mechanisms for all employees to report anything that does not go as it should. Through the
      Whistleblowing System, issues such as workplace discriminatory incidents, fraud, and others can be reported. AKR ensures
      that all reports submitted are confidential and will be followed up in accordance with Company regulations. In 2023, AKR
      received no reports of workplace discrimination incidents.




      LEARNING
      & DEVELOPMENT
      [OJK F.22]



      AKR continues to support the ongoing improvement of            To ensure that employees have sufficient skills, AKR
      employee competencies, with employee training a crucial        regularly organizes training and development programs
      element in managing human resources. The Company’s             aimed at optimizing employee potential and quality.
      development and adaptation to changing times depends           Facing increasingly competitive business dynamics,
      greatly on the knowledge and skills possessed by               AKR is committed to providing the best training and
      employees.                                                     development programs for. All employees at AKR
                                                                     have equal opportunities to participate in training and
                                                                     development initiatives, thus creating a fair and inclusive
                                                                     work environment.




                                     NEOP Program for New Employee Training
      The primary focus of the Human Resources Department            program details the Vision, Mission, history, internal
      is the implementation of training programs for new             regulations, and information needed by new employees.
      employees. AKR believes that adequate guidance and             They are also provided with explanations about their tasks,
      quality training for new employees will accelerate their       responsibilities, performance indicators, and on-the-job
      contributions to the Company. The strategy implemented         training, to enable them to contribute quickly.
      is to accelerate the learning curve through an onboarding
      program.                                                       During the probationary period, the Recruitment and
                                                                     Training Department regularly holds meetings with new
      In its execution, new employees are required to participate    employees and their supervisors. The aim is to evaluate
      in the NEOP (New Employee Orientation Program). This           learning progress and address any obstacles that may
                                                                     arise during work.




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Training Hours

The regular training provided by AKR aims not only to impart skills to employees to advance their careers but also to
enhance motivation, loyalty, and performance. The total training hours in 2023 amounted to 51,211.2 hours with details as
shown in the following table:


Training Hours by Gender
[GRI F.22][GRI 404-1]

                                           2023                              2022                                     2021
         Details
                             Male      Female          Total    Male       Female         Total          Male        Female        Total

 Total Training Hours       40.355,9      10.855,3   51.211,2   28.903,5    13.625,0      42.528,5       62.629         5.397        68.026




Average Training Hours by Gender

                            Description                                    2023                      2022                     2021

 Male                                                                             16.86                      12.7                    27.75

 Female                                                                           25.91                      36.2                    15.16



Average Training Hours by Job Level

                                                                                                                       Average Training
                                                                       Total Training          Number of
                            Description                                                                                   Hours per
                                                                           Hours               Employee
                                                                                                                          Employee

 President Director – Director                                                      78                          25                    3.12

 General Manager - Senior Manager                                                   53                          59                    0.90

 Manager                                                                          684.1                      137                      4.99

 Asst Manager                                                                 1,401.4                        148                      9.47

 Supervisor                                                                  4,881.95                        703                      6.94

 Staff - Senior Staff                                                         4,377.1                        586                      7.47

 Operative                                                                   39,735.6                       1,138                    34.92

 Total                                                                     51,211.15                        2,813                    18.21



Throughout 2023, the Company continued efforts to accelerate digitalization through communication, education,
socialization, and the implementation of internal events.




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      AKR Training Programs
      [GRI 404-2]


      The key to success in business and organizational            Training provided by third-party collaborators refers to
      development lies in the quality of human resources.          training needs based on government regulations related
      Therefore, AKR implements education and competency           to AKR’s core business and usually have licenses issued
      development programs to shape individuals who are            by formal institutions such as the National Professional
      excellent and highly competent, capable of working           Certification Agency (Badan Nasional Sertifikasi Profesi,
      effectively and efficiently to enhance productivity and      BNSP) and the Ministry of Manpower, with a validity period
      organizational maturity. Thus, members of the Company        of between 3 – 5 years, and must be renewed before the
      can enhance sustainable value and benefits.                  expiration date.

      In 2023, the focus was on implementing fundamental           In addition to the aforementioned training categories,
      training programs. The Company pays attention to             there are also training programs specifically organized for
      mandatory training and believes that these are key to risk   employees based on specific needs to enhance their skills
      management.                                                  and knowledge. These training programs are generally
                                                                   provided to employees based on individual needs or for
      To determine the appropriate training programs for AKR       the development of the respective employees and are
      employees, the HR Department collaborates with the           not scheduled regularly but arranged based on emerging
      relevant Heads of Division to determine a matrix that        needs.
      aligns with the job roles or functions of each employee.
      This matrix contains mandatory training programs,            The training topics conducted at AKR and its subsidiaries
      whether developed internally or externally through third-    throughout 2023 included aspects such as:
      party training providers collaborating with AKR.             • NEOP (New Employee Orientation Program)
                                                                   • Corporate Values
      The internal training implemented by AKR will enhance        • Technical
      employee competencies in terms of skills and knowledge       • Skill certifications
      according to their tasks and responsibilities. These are     • Leadership
      updated every 1-2 years to align with evolutions in the      • Occupational Health and Safety
      business world. AKR also ensures that employees receive      • Environmental Management
      the latest knowledge from both Standard Operational          • Governance
      Procedures (SOP) and working instructions.                   • Legal
                                                                   • Soft Skills
                                                                   • Information Technology
                                                                   • Languages




      Rp1.45 billion
                                                                           Investment on Training of AKR Holding
                                                                                        Employee
                                                                                          (billion Rupiah)
      Investment in Education and Training Programs for the                                                  1.45
      Year 2023                                                                                 1.16



                                                                                   0.65




                                                                                   2021        2022          2023




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                                                                                                     Total Number of Training
                                           Position
                                                                                                            Participants

 Manager                                                                                                                   2,622

 Assistant Manager                                                                                                            136

 Operative Non Skill                                                                                                          820

 Total                                                                                                                     3,578


The Company and its subsidiaries have a training policy for      Training at AKR and several subsidiaries can be conducted
both leaders and employees. The training provided can be         externally through training consultant vendors or in-
in the form of enhancing hard skills as well as soft skills.     house training such as fire safety, HSSE, Site Training,
Training programs are also tailored based on performance         English language, MS Excel, and others. External training
assessments and specific needs identified by the Company         may include motivational/team building training, OHS
to enhance employee competencies, especially those               certification for chemistry/electricity/hazardous material
related to Certification of Expertise in accordance with         drivers, and others,
the standards of the National Professional Certification
Agency (BNSP).




Employee Performance Assessment
[GRI 404-3]


At the end of each year, AKR conducts performance
                                                                 in probationary periods, on contracts, or occupying
evaluations based on Key Performance Indicators (KPIs),
                                                                 temporary positions also undergo routine evaluations. At
which have been set jointly with each individual employee
                                                                 the directorate level, routine evaluations are conducted
at the beginning of the year. Subsequently, the year-end
                                                                 based on overall business achievements in the relevant
performance evaluation results will be followed up with
                                                                 divisions and departments.
necessary reward, development, training, and retention
programs.
                                                                 Since 2022, the Company has revitalized Key Performance
                                                                 Indicators (KPIs) for all positions. The revitalization of KPIs
All employees at AKR and its subsidiaries receive regular
                                                                 is aimed at achieving several strategic targets:
performance evaluations. At ARUKI, performance
                                                                 • Ensuring that all strategic goals of the Company can
evaluations are conducted once a year. Meanwhile, for AKR,
                                                                     be cascaded from the top leadership to all levels of
BKMS, APR, BMS, JTT, and DPR, performance evaluations
                                                                     employees.
are conducted twice a year, at mid-year and year-end.
                                                                 • Ensuring that there is a collaborative process between
                                                                     departments in line with the Company’s values.
Performance evaluations are conducted twice through
                                                                 • Aligning       communication         processes      between
regularly scheduled monitoring by supervisors on the
                                                                     supervisors and subordinates, and the development
achievement of predetermined work targets. Employee
                                                                     process of subordinates.
evaluations in terms of competency and potential
                                                                 • Serving as the basis for fair employee evaluations and
are conducted mid-year. Additionally, employees
                                                                     the process of rewarding good performance.




                                                    Performance Monitoring
     Working Target Determination                                                                 Performance Evaluation
                                                         (by Supervisor)


                                                                                            Accomplishment or final results
      All employees are required to              The superior conducts regular
                                                                                            of employee performance would
     understand the individual work             monitoring of all subordinates’
                                                                                             be evaluated at the end of year
   Targets which include Performance             performance, to measure their
                                                                                              to receive work performance
   and Competence or other priorities        accomplishment in accordance with
                                                                                            assessment of each employee for
         designed to their material             the previously determined KPIs.
                                                                                                  futher procecssing by HR.




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      In recent years, AKR has implemented the People                    In the PDC system, employees are evaluated based on
      Development Committee (PDC) program for employee                   two aspects: performance and potential. Both aspects
      career development. PDC is an objective performance                are assessed by supervisors, subordinates, and peers, and
      evaluation process for each employee, conducted by an              each employee enrolled in the PDC program engages in
      assessment committee comprising the direct supervisor              discussions with their advisor regarding career aspirations,
      and career advisors (advisors) of the evaluated employees.         passion, motivation, and engagement.


                                            The Performance Appraisal Process and Metrics

                                     Performance Management People Development Committee (PDC)
                        Pre PDC                                PDC Session                                 Post PDC

       Advisor + Advisee Marketing                People Development Committe             Employee Development
                                                  Marketing
       Each Advisee will be given the                                                     Through the PDC process, the Company
       opportunity   to    discuss   with         After the Advisor + Advisee meeting     can also determine:
       the Advisor regarding career               is conducted and all supporting         • Succession planning as a continuation
       aspirations, passion, motivation,          documents from the Advisee are            of human resources to support
       and engagement. The Advisor                complete, the Committee holds a           sustainable business continuity.
       can further guide by providing             meeting and discussion regarding:       • Individual Development Plan as a plan
       development      programs      and         • Talent Pool for further direction       to enhance the knowledge and abilities
       improvements     to   performance            with the provision of development       of the Advisee with career planning
       as needed. The PDC process is                programs.                               and      performance    management
       conducted in stages according to           • Employee Mobility or Career             activities.
       the employee’s level and is subject          Outlook as per the company’s          • Performance     Improvement      Plan,
       to continuous improvement and                needs, which may include vertical,      which can be used to help improve
       development.                                 horizontal, diagonal, or staying in     performance     and    provide   clear
                                                    the same position.                      guidance for future improvements.
                                                  • Project Assignments needed by
                                                    the Advisee and recommendation
                                                    of an Action Plan.



      In career development, AKR offers two paths: vertical and          to their future career projections. Career development and
      horizontal. Vertical advancement involves progressing              placement based on employee needs are prioritized from
      within the job level, while horizontal advancement entails         within the Company (promotion from within).
      increasing responsibilities, such as moving from a small
      branch to a larger one. The career development process             Through the HRD Committee process, employees also
      is based on the results of Performance Evaluation, which           have the opportunity to express their career aspirations
      assesses the achievement of KPI targets processed by the           and development program needs. The HRD will then
      HRD Committee.                                                     evaluate employees and determine whether they can take
                                                                         on certain positions, vertically, horizontally, diagonally, or
      This committee will determine the career development               remain in their current position with additional tasks or
      of employees, whether they can assume certain positions            specific projects according to their career development
      vertically, horizontally, diagonally, or remain in their current   forecast. Additionally, HRD may plan succession planning
      position with additional tasks or specific projects according      as a continuous step to support the sustainability of human
                                                                         resources in optimizing business continuity.




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Safety Assurance Practices at AKR Subsidiaries

          Business Unit/
  No.                                                   Customer Health and Safety Assurance Practices
           Subsidiary:

   1.    AKR (induk)            •   Establishing customer health and safety policies for all entities under AKR
                                •   Processing handling, storage, shipping, and distribution
                                •   Providing facilities and fleets that meet standards
                                •   Providing competent manpower
                                •   Providing product handling information through MSDS

   2.    JTT                    •   Customer product handling safety based on SOP (Standard Operating Procedures)
                                •   Safety induction for customers
                                •   Safety of customers or their representatives (Customer representatives, Drivers, Surveyors)
                                •   Conducting safety inspections of equipment and properties owned by customers (trucks,
                                    ships)
                                •   Specialized training

   3.    BKMS                   •   Receiving services tailored to industrial company needs, such as clean water, domestic
                                    waste management, and health facilities including the provision of clinics for first aid (P3K)
                                •   Conducting regular checks and quality control on products, services, and service facilities
                                    provided to customers

  4.     APR                    •   Fueling up procedures
                                •   Turning off vehicles
                                •   Cell phone usage
                                •   Installation of smoke detectors in toilets
                                •   Stoppers in parking areas
                                •   Bollards at dispensers and buildings
                                •   Clear demarcations

   5.    DPR                    •   Customer safety includes accident prevention, such as operational DPR employees
                                    equipped with certified safety driving training from nationally and internationally
                                    recognized training institutions. Thus, when the operational team uses vehicles near
                                    customer facilities, the DPR team is aware of hazards and their mitigations.
                                •   To ensure customer safety, the following are required:
                                •   Readiness of DPR personnel
                                •   Readiness of equipment and its certifications if to be used
                                •   Appropriate Personal Protective Equipment (PPE) for the activities performed

  6.     ARUKI                  •   Product usage/application
                                •   Providing adequate Material Safety Data Sheets (MSDS) and technical services



Policy on Training in Several Subsidiaries

              Subsidiary
  No.          Policy on                                               Policy on Training
               Training

   1.     BMS              Adjusted based on performance evaluations, as well as specific needs identified by the
                           company to enhance the skills of employees, particularly those related to certification of
                           expertise. The form of skill enhancement includes training conducted externally through
                           training consultants or in-house training organized by PT Pelindo III or PT BJTI.

   2.     BKMS             Certified training according to the standards of the National Professional Certification Agency
                           (BNSP) for all employees operating machinery, equipment, and inspection teams requiring
                           specific skill certifications relevant to their positions.




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                       Subsidiary
        No.             Policy on                                                       Policy on Training
                        Training

         3.        ARUKI                •   Internal Training - Emergency Response and Occupational Health and Safety (K3), Industrial
                                            Relations, Handling Chemicals
                                        •   External Training - Motivation/Team Building, Certification of Skills (Chemical Safety,
                                            Electrical Safety, B3 Driver)

         4.        APR                  In house training :
                                        • Fire Suppression
                                        • Ethic and Compliance
                                        • HSSE
                                        • Site Training’

                                        External Training:
                                        • Technical Guidance and Competency Testing Program for Senior HSE Supervisors Level IV
                                           Oil and Gas Industry- HR Training
                                        • Training of Trainer Certification
                                        • Asessor Training Certification
                                        • Hazardous Waste Management Supervisor (PPLB) Responsibility
                                        • Water Pollution Control Officer (PPPA) Training

         5.        DPR                  •   All Employees: English Language Training, Microsoft Excel, Word & PowerPoint
                                        •   Operator: K3 Migas, Basic Fire Training, Defensive Driving Training, Ground Support
                                            Equipment License Training, Task Breakdown Operation Training, Task Breakdown
                                            Maintenance Training.

         6.        JTT                  •   Certification Legal Mandatory for OPS, MTC, & SHEQ (Overhead Crane, Mobile Crane,
                                            Rigger, Loading Master, PFSO, Penanggungjawab limbah B3, Operator Genset, AK3 Listrik,
                                            Operasional Limbah B3)
                                        •   Safety Mandatory (CSE, AGT, First Aid, CSR, Fire C)
                                        •   Workshop (iCare, Unconscious Bias)
                                        •   Soft skill (Media Training, Leadership Training)
                                        •   OLMS Operation : Global Module Operation Vopak, Local Module
                                        •   Maintenance: CMRP (Effective Maintenance Management and Reliability Practices), CMMS



      Policy on Allowance Provision at AKR Subsidiaries JTT/BKMS/BMS/APR/DPR/ARUKI

                                ARUKI                  JTT                   BKMS                  DPR                   APR                   BMS
       Allowance         Permanent Contractual Permanent Contractual Permanent Contractual Permanent Contractual Permanent Contractual Permanent Contractual
                         Employees Employees Employees Employees Employees Employees Employees Employees Employees Employees Employees Employees


      Eid Allowance         √           √         √          √           √          √          √          √          √          √          √          √

      Welfare
                            √           √         √          √                                 √          √                                √          √
      Allowance


      Leave
                            √                     √          √                                 √          √
      Allowance


      Income Tax
                            √           √         √          √           √          √                                                      √          √
      Allowance


      Transportation
                            √           √         √          √           √          √          √          √          √          √          √          √
      Allowance


      Life Insurance        √           √                                           √          √          √                                √          √

      Meal Allowance        √           √                                √          √                                                      √          √

      Healthcare
                                                  √                      √          √          √          √          √          √          √
      Assistance




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                          ARUKI                  JTT                   BKMS                  DPR                     APR                     BMS
  Allowance        Permanent Contractual Permanent Contractual Permanent Contractual Permanent Contractual Permanent Contractual Permanent Contractual
                   Employees Employees Employees Employees Employees Employees Employees Employees Employees Employees Employees Employees


Annual Leave                                                       √          √

Maternity
                      √                     √                      √          √          √          √          √           √             √           √
Leave


Special
Leave as per
                                                                   √          √
Government
Regulations


Celebration
                                                                   √          √
Bonus


Compassionate
                                                                   √          √
Allowance


Health
                                                                   √          √
Insurance


Employee
                                                                   √          √
Social Security


Compensation
                                                                                                                           √
Allowance


Social Security
Outside
                                                                                                               √
Employment
Relationship




Maternity/Paternity Leave Data 2023

               Gender                      AKR             APR             DPR            BKMS              BMS                JTT           ARUKI

 Male                                             0               0                2               0                 0               4                   0

 Female                                          10               4                0               0                 1               0                   0

 Total                                           10               4                2               0                 1               4                   0



Performance Appraisal Process in Subsidiaries

  No.             Subsidiary                                                  Performance Appraisal

   1.         BKMS                 1. Each employee has received KPIs at the beginning of the current working year.
                                   2. KPIs are created by respective department heads at minimum and approved by the
                                      respective directors. KPIs of Department Heads/Division Heads/Managers responsible
                                      directly to the Board of Directors must be approved by the relevant Directors. Approved
                                      KPIs may be revised if deemed necessary by the Board of Directors.
                                   3. Position papers are created as needed.
                                   4. Performance evaluations are conducted at Mid-Year and End-Year.
                                   5. Performance evaluations are conducted by a Panel Team, consisting of the immediate
                                      supervisor, the supervisor’s supervisor, and the Head of HR.
                                   6. Performance Evaluation results are communicated to the HR-People Development
                                      department and the respective Directors by the Division/Department Heads, no later than
                                      1 (one) week after the evaluation.
                                   7. HR-People Development summarizes and verifies the performance evaluations of all
                                      employees to the respective Directors, no later than 2 (two) weeks after receiving the
                                      Performance Evaluation results.


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        No.        Subsidiary                                                Performance Appraisal

                                         8. The final performance evaluation score based on KPIs is categorized into five categories:
                                            • E (Unacceptable): Achievement < 80% of KPI target
                                            • D (Need Improvement): 80% ≤ Achievement < 95% of KPI target
                                            • C (Meet Expectations): 95% ≤ Achievement ≤ 105% of KPI target
                                            • B (Very Good): 105% < Achievement ≤ 125% of KPI target
                                            • A (Excellent): Achievement > 125% of KPI target
                                         9. The final decision of the Performance Evaluation lies with the Board of Directors.
                                         Benchmark: KPI (Work Targets) 80%, Behavioral Competencies 20%, Additional
                                         Achievements 10%

         2.      BMS                     Performance evaluation process is conducted online, utilizing a top-to-bottom or single rater
                                         approach and is kept confidential. The benchmark is the Competency Dictionary, consisting
                                         of Core Competencies and Managerial Competencies.

                                         In Core Competencies, there are 6 Aspects: Achievement Orientation (ACH), Integrity (INT),
                                         Cooperation and Collaboration, Customer Service Orientation (CSO), and Communication
                                         (COM). Meanwhile, for Managerial Competencies, there are 5 aspects: Problem Solving (PS),
                                         Directiveness (DIR), Leadership (LDS), and Developing Others (DO).

                                         Each Competency aspect has six competency levels with behavioral indicator explanations at
                                         each level. This is used to map the competency level of each employee compared to the Job
                                         Competency Standards held by the respective employee.

                                         In addition to competency-based evaluation, performance will also be measured based on
                                         Key Performance Indicators (KPIs).

         3.      APR & DPR               Every employee is required to conduct a self-assessment first before engaging in one-on-one
                                         discussions with their supervisor. The benchmarks are as follows:
                                         • Achievement of Targets
                                         • Assessment of core company values
                                         • Strengths & Areas for Development

        4.       JTT                     The performance evaluation process begins with self-assessment by each employee via
                                         MyPulse. The employee’s supervisor also provides an assessment. After that, there is a
                                         calibration process by the Manager/Management Team, and the final results will then be
                                         provided to the employee.

                                         The benchmarks are as follows:
                                         • Responsibility/Accountability
                                         • Key Behavior (care for safety, Integrity, Team Spirit, Agility, Commitment, People Growth)
                                         • Overall Rating (Excellent, Fully meets, Partially meets, Required Actions)



      Policy, Process, and Career Development Opportunities

        No       Business Unit                                            Career Development Policy

         1.      AKR (Induk)         •    Those who perform well have the opportunity to advance their careers, either vertically
                                          (moving up in job level) or horizontally (expanding responsibilities, such as moving from a
                                          small branch to a larger one).
                                     •    The process is based on evaluations from Performance Appraisals, which assess the
                                          achievement of KPI targets.
                                     •    Everyone with good performance has equal opportunities for career development.
                                     •    Through the PDC process, employees have the chance to express their career expectations
                                          and aspirations, as well as the development programs they require.
                                     •    The PDC will determine whether employees assessed are suitable for specific positions,
                                          whether vertically, horizontally, diagonally, or staying in their current position with additional
                                          tasks or projects, according to their projected career path.
                                     •    The PDC can also establish succession planning as a continuous human resource strategy
                                          to support the sustainability of the business.



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  No      Business Unit                                      Career Development Policy

   2.     BKMS            Career development and placement based on employee needs are prioritized internally
                          within the company. If there are no suitable candidates internally, external candidates will be
                          sought while adhering to the HR Department's SOP framework (Recruitment, Performance
                          Management, Training, Rotation).

   3.     BMS             If there are vacancies for structural levels, internal recruitment is prioritized first. Every
                          employee has an equal opportunity to fill available positions as long as they meet the required
                          qualifications according to the established selection process. If there are no suitable internal
                          candidates, external recruitment will be conducted.

   4.     APR             If there is a vacant position, APR typically prioritizes internal employees. There will be a series
                          of stages and assessments to determine suitability and identify any necessary development
                          programs. Only if there are no suitable internal candidates will external recruitment be
                          pursued.

   5.     JTT             Equal opportunities are provided based on performance and support towards organizational
                          goals.




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   05
       Our
Communities

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            The key to AKR’s sustainability is establishing good relations with the
            surrounding community, to walk, grow, and develop together.




      SOCIAL RESPONSIBILITY & SUSTAINABLE
      COMMUNITY DEVELOPMENT


      AKR understands that sustainability can be achieved if                   Growing Together with the community is AKR’s mission in
      the community also benefits from a company’s growth.                     maintaining sustainability. consistently providing special
      Therefore, in achieving sustainability values, success must              attention in the form of empowerment and engagement
      be accompanied by the creation of an independent and                     through various community welfare improvement
      prosperous community.                                                    programs.

      AKR is committed to continually providing tangible and                   AKR also builds harmonious relationships to foster strong
      widespread benefits to the surrounding community, in line                ties between the company and the community, in a belief
      with the values contained in the Sustainable Development                 that through strong relationships, effective, efficient, and
      Goals (SDGs). In daily practice, AKR has developed                       sustainable programs will follow.
      operational strategies that mitigate potential and actual
      social impacts on the surrounding community, and
      approaches and engages the community in determining
      Social Impact Assessments and designing community
      social programs.
      [GRI 413-2]


                                Proactive in Assisting the Needs of Communities around Operational Areas
          Medan


                                             Pontianak

                                                                                     Tanjung Selor
                                                                                                     Manado-Bitung

                                 Palembang                    Buntok            Palaran




                                                                            Stagen
                                                             Banjarmasin
                      Lampung                Jakarta-Priok


                           Ciwandan
                                                                 Surabaya
                                      Bandung
                                            Semarang
                                                                    Bali




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Encouraging Multiplier Effect from Business Operations
[GRI 203-2]


As AKR’s aim is to provide added value to all stakeholders, creating positive multiplier effects in line with the programs
and plans of the Indonesian government is advisable. AKR seeks to be a constructive partner by supporting government
initiatives and creating positive synergies that can bring long-term benefits to society.




              AKR Supports Government in “One Price Fuel” Program
Since 2017, the Indonesian government has been pushing               provide access to affordable, equitable, and justly priced
for the implementation of the “One Price Fuel” Program in            energy to communities in all regions of the Indonesian
the 3T (outermost, frontier, and least developed) regions            archipelago, thus ensuring that the purchasing power of
across Indonesia. AKR serves as one of the extended                  the people can be maintained.
arms, reaching out to communities outside of Java Island
to ensure they can enjoy the same fuel prices. The one-              AKR has been appointed one of the partners in distributing
price fuel policy is expected to bring about social justice          subsidized fuel since 2010. Together with the government,
and create a multiplier effect in developing communities,            the Company improves supervision to ensure that the
generating indirect economic impacts.                                distribution of subsidized energy is carried out accurately
                                                                     and in the right volume. In this regard, the Company also
On March 14, 2024, AKR was entrusted as a partner in the             develops IT systems at Motor Vehicle Fuel Filling Stations
distribution of subsidized energy for the fiscal year 2024.          (SPBKB) and Fishermen’s Fuel Filling Stations (SPBN),
The distribution of subsidized energy carried out by the             where subsidized energy distribution transactions can be
government through PT. AKR Corporindo Tbk. aims to                   monitored jointly by the government and AKR.




                                 Accumulated Achievements until December 31, 2023

  CUMULATIVE ACHIEVEMENTS

              Investment                                   Workforce                                   Business Players



   Rp71.5 trillion                          32,000 people                                            24 business
                                                                                                        players


  ACHIEVEMENTS IN 2023                                                                    MULTIPLIER EFFECT

Investment                           Workforce                                          • Increased regional and national economic
                                                                                          growth.
     Target                                                           Target            • Increased direct and indirect employment.

     Rp3.6 trillion                                             16,000                  • The presence of anchor tenants impacting
                                                                                          the growth of downstream ecosystems.
                                                                                        • The existence of integrated industrial
                                                                                          zones (Industrial Zones and Ports in one
                      Realization                      Realization                        location) leading to significant reduction in
              Rp31.4 trillion                            11,573                           logistic costs.
                                                                                        • Increased industry competitiveness on the
  100%             +4 Pelaku Usaha                                         100%
                                                                                          global stage.




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      Investing in Industrial Development Facilities to Contribute to the Progress of the
      Indonesian Economy
      [GRI 203-1]

      AKR’s desire to contribute to the development of competitive industries has driven the establishment of an integrated
      Industrial Zone and Port Area with the potential for large-scale job creation. Through its subsidiary, PT Usaha Era Pratama
      Nusantara, AKR, together with PELINDO through PT Berlian Jasa Terminal Indonesia, have established the Java Integrated
      and Industrial Port Estate (JIIPE) project in Manyar District, Gresik, East Java, in line with the government’s vision of
      advancing Indonesia by enhancing industrial competitiveness through the reduction of logistical costs.




         Vice President Visits Java Integrated Industrial and Port Estate (JIIPE)
                                 Special Economic Zone




      In February 2023, Vice President Mr. Prof. Dr. (HC) K.H.       integrates sea ports and has direct access to domestic and
      Ma’ruf Amin visited the Strategic Project of the Special       international markets that can support the Indonesian
      Economic Zone (SEZ) - Java Integrated Industrial and Port      economy.
      Estate (JIIPE), developed by AKRA together with PELINDO.
      The Vice President inspected the progress of the JIIPE         As of December 2023, the JIIPE Gresik SEZ has
      Gresik Special Economic Zone as well as the copper smelter     accommodated 32,000 workers and is targeted for 199,918
      project being built in the area. He was accompanied by         direct workers by 2036. The JIIPE Gresik SEZ project
      senior Government officials, President Director of the AKR     also provides benefits to the surrounding community,
      Corporindo Tbk Group Mr. Haryanto Adikoesoemo, and             including:
      President Director of PT Berkah Kawasan Manyar Sejahtera       1. Job creation through local companies providing
      (BKMS) Mr. Bambang Soetiono. BKMS is the manager of               cleaning labor services - PT UPERTAM III Manyar
      JIIPE.                                                         2. Job opportunities for local fishermen or their families
                                                                        within the Village Fishermen Cooperative in Mengare
      During his visit, the Vice President appreciated the              Kramat Village
      development of the JIIPE Gresik SEZ in terms of investment     3. Training for fishermen or their families and improvement
      and supporting infrastructure. The Vice President also            of facilities, especially within the Village Fishermen
      explained that JIIPE is a government program overseeing           Cooperative in Mengare Kramat Village
      the downstreaming of smelters. He hoped that the JIIPE         4. Sharing knowledge about industry developments
      Gresik SEZ could increase investment in the area.                 with the surrounding community through regular
                                                                        socialization events called “Ngaji Melek Industri”
      Meanwhile, the President Director of AKR, Haryanto             5. Developing nurseries and land conservation in
      Adikoesoemo, revealed that the JIIPE Gresik SEZ                   collaboration with the surrounding community.




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Creating Employment Opportunities & Local Recruitment
[GRI 202-2]


In upholding the principle of fairness, AKR provides equal        2. Cost Savings
opportunities for all Indonesians to become employees.               Local recruitment can be more cost-effective than
Every individual who passes the selection process,                   recruiting from outside the community. Transportation
regardless of their background, is given the opportunity to          and accommodation costs during recruitment can
work and contribute in various positions or roles. The same          be eliminated. Thus, recruitment costs and relocation
applies to the communities surrounding operational areas             expenses can be significantly reduced.
(Ring-1), who can work and even hold important positions          3. Good Retention
as long as they have the relevant skills.                            Employees from the local community are more likely to
                                                                     stay for the long term because they have strong ties to
AKR’s need to achieve sustainability must be supported by            the community. Employee turnover rates will be low.
experienced and competent human resources, including              4. Increased Diversity and Inclusion
those from the surrounding communities. Therefore,                   Local recruitment can help AKR create a more diverse
AKR has taken the initiative to recruit employees from               and inclusive workforce, allowing the Company to
the local communities in an effort bring positive impacts            have a better perspective and understanding of local
to the region, the communities, and of course, to the                wisdom, which can lead to increased innovation and
sustainability of the Company.                                       creativity.
                                                                  5. Positive Impact on the Local Economy
The added value obtained from recruiting local                       Local recruitment can have a positive impact on the
communities includes:                                                local economy, creating job opportunities for individuals
1. Local Cultural Understanding                                      in the community, helping to reduce unemployment
   Employees from the local community have a better                  rates, and stimulate local economic growth.
   understanding of local culture, customs, and traditions.
   They can help the Company navigate the local business          Overall, local recruitment provides significant benefits for
   environment, build relationships with local stakeholders,      the Company, the community, and even at the individual
   and communicate effectively with local customers.              level. Consequently, strong relationships are fostered with
                                                                  local stakeholders, enhancing cost efficiency, and creating
                                                                  a more diverse and inclusive workforce.




   BP AKR Fuels Retail Opens Job Opportunities for Local Communities
Since 2015, AKR has established a partnership with British        The presence of these gas stations has created job
Petroleum (BP) through the formation of a subsidiary              opportunities for the local community. To date, the
named PT Aneka Petroindo Raya or BP APR, developing               Company operates AKR and BP AKR gas station outlets
fuel businesses in Indonesia. In its operations, BP AKR Fuels     in various locations across Indonesia, with all employees
Retail is supported by employees from the surrounding             coming from the local community.
communities of gas stations (SPBU).




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                                       Employees from the Local Community
      The presence of PT Berlian Manyar Sejahtera has brought positive impacts to the surrounding communities of its
      operational areas, creating job opportunities for local residents who are recruited to work in various fields that meet the
      Company’s needs.


       Testimony 1                               Testimony 2                                Testimony 3

      Hasbi As Siddiqi                          Ari Kusworo                                Huda
      Corporate Secretary and Public            Operations Staff                           Security
      Relations Staff
                                                “When I first joined PT Berlian Manyar     “I am very grateful to work at PT
      “I am proud to be part of PT Berlian      Sejahtera, I found a positive and          Berlian Manyar Sejahtera. As a
      Manyar Sejahtera, which has given         enthusiastic working atmosphere.           security officer, I receive intensive
      me the opportunity to contribute to       The Company provides full support          training to ensure port security. The
      the development of the JIIPE port in      for skill development, including           Company invests in port operations
      Gresik. With an inclusive approach,       beneficial training sessions. As part      and cargo handling, allowing us to
      the Company empowers us, the local        of the operational team, I can actively    work efficiently and provide the best
      workforce, to take an active role in      engage in managing operational             service.”
      every stage of the work. I feel valued    performance, giving me a sense of




                                                                                           84%
      and have a real responsibility in         responsibility and confidence.”
      providing service to customers using
      port services.”


                                                                                           Karyawan AKR Holding adalah
                                                                                           karyawan lokal




                 JIIPE Equips Religious Students and Fishermen with Industrial
                                         Competencies
      JIIPE takes innovative steps by organizing English and         Through collaboration with other industry players in the
      Mandarin language training as well as industrial skills        JIIPE Special Economic Zone, this program aims not only
      training for student workers, while also broadening            to enhance the quality of human resources from the local
      horizons by including the local fishermen community in the     community but also to open up broader job opportunities
      training program. This initiative aims to strengthen their     for students and fishermen. With a comprehensive and
      competencies to compete on the global stage, promote           inclusive approach, JIIPE strives to create an ecosystem
      gender equality, and build effective communication and         that supports local economic growth and harmonious
      teamwork skills.                                               integration between the community and the national
                                                                     industry, ensuring that all parties benefit from sustainable
      This activity reflects JIIPE’s commitment to enhancing         industrial growth.
      human resource quality, supporting the local economy, and
      promoting community integration in the national industry.
      This program is designed to improve communication
      abilities in English and Mandarin, as well as strengthen
      technical and non-technical skills, such as discipline and
      teamwork, which are essential in the modern workforce.




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INVOLVING
LOCAL SUPPLIERS
[GRI 204-1]



Suppliers are important to the pace of a business, with           to achieving a minimum 30% Domestic Content Level
only good quality suppliers accepted by AKR. Currently,           (TKDN) for B30 products. In 2023, significant progress was
local suppliers have reached the quality standards set by         shown, with all of AKR’s operational areas for B30 products
AKR, which not only increases the Domestic Component              surpassing the 30% TKDN target, averaging over 40%.
Level (TKDN) ratio but also boosts the local economy. AKR’s
local suppliers are those domiciled around the operational        This achievement not only strengthens AKR’s position
areas. As part of AKR’s sustainability commitment, the            as a pioneer in sustainable initiatives but also marks a
economic benefits of business activities are promoted             significant step in the journey towards further integrating
through the involvement of local suppliers and the use            sustainable business practices into stronger industrial
of domestic products and services. AKR is committed               integration with domestic potential.




43.31%
Average TKDN value of B30 products




Operational Impact on the Local Community
[SEOJK F.23] [SEOJK F.24] [GRI 413-1] [GRI 413-2]


AKR strives to create an environment free from air and            the impacts and risks that may occur from business
noise pollution, safe from potential fire risks, and other        activities. AKR also endeavors to supplement projects
potential hazards that may arise from operational activities.     and operational activities with Environmental Impact
                                                                  Assessment (EIA) documents, which include social impact
To ensure there are no negative impacts on the surrounding        analysis.
community, AKR routinely and comprehensively conducts
various stages of impact analysis. This analysis assesses         AKR provides direct channels for the community to submit
                                                                  reports, feedback, and criticisms regarding operations.
                                                                  With these direct channels, the relationship between the
                                                                  community and AKR becomes closer and more positive.
                                                                  In 2023, there were no complaints received from the local
                                                                  community regarding operational activities.




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                                                                  Trees to Cool West Jakarta
                                                                  In September 2023, AKR, along with several companies in West
                                                                  Jakarta, donated a number of trees to revitalize green spaces in
                                                                  Jakarta and tackle pollution issues. This tree planting initiative
                                                                  was initially proposed by the Mayor of West Jakarta, Mr. Uus
                                                                  Kuswanto.




        He urged companies in West Jakarta to assist the government in addressing the city’s pollution problem through tree
        planting. AKR donated 30 Ketapang Kencana trees, each measuring 3 meters in height, known for its ability to effectively
        absorb and process air pollution. It also thrives well and provides shade to the surrounding environment.

        The tree planting took place on September 11, 2023, in Citra Lima, Kalideres and will continue in the coming months. It is
        hoped that this effort will help reduce Jakarta’s worsening pollution.




      Management of CSR Programs
      [GRI 3-3]


      Every year, AKR implements various programs and                process of identification and prioritization, AKR collaborates
      activities to enhance the welfare of the surrounding           with the community. Thus, the CSR activities formulated
      communities. In 2023, AKR continued Corporate Social           and established can be implemented effectively and
      Responsibility (CSR) activities based on the needs of          beneficially.
      the local community, ensuring their involvement from
      planning to implementation.                                    AKR needs to ensure that all CSR programs conducted
                                                                     bring positive impacts. Evaluations cover the entire
      To identify community needs, AKR employs the                   process, from determining activities, implementation, and
      Management by Walking Around strategy. With this               success rate, to the positive impacts felt by the community.
      approach, community needs are identified and prioritized,
      determining which needs must be addressed first. In the




      AKR’s CSR Pillars
      [SEOJK F.25]


      AKR focuses its CSR programs on three pillars: education,      In addition to these three pillars, several CSR programs
      health, and community development, and believes that           take place, both planned and unplanned, in areas such as
      through these pillars, communities thrive, and quality of      social and religious affairs, and the development of public
      life improves, allowing communities to remain productive.      facilities and infrastructure.




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                   Education
                   Education serves as the primary factor for improving quality of life. However, not all areas have the
                   same education standards. Many remote areas far from major cities have low levels of education.
                   Therefore, AKR strives to improve quality for the surrounding community.

                   Especially for areas where the company operates, AKR provides scholarships for talented students
                   from less fortunate families living near operational areas, collaborating with schools to identify and
                   distribute scholarships. For children of employees who excel academically, ranking from first to fifth
                   place, scholarships are awarded for one year.




                   Health
                   AKR believes that only healthy individuals can work and be productive, so has been committed to
                   maintaining the health of its employees and the surrounding community. Even after the Covid-19
                   pandemic, AKR continues to uphold this pillar. From prevention through vaccination to treatment and
                   rehabilitation. Throughout 2023, AKR conducted health checks for employees and provided various
                   healthcare equipment to the community.




                   Community Development
                   Community programs and activities around operational areas show active participation in supporting
                   the improvement of community welfare, serving as concrete evidence of AKR’s efforts to make a
                   positive contribution to society.




Implementation of Social Responsibility Programs
[SEOJK F.25] [GRI 413-2]


AKR ensures that programs undertaken have a positive          Throughout 2023, AKR continued several ongoing
impact on the surrounding community. Therefore, the           programs, established as part of its regular and sustainable
three pillars of CSR - education, health, and community       initiatives. Moreover, the initiative was taken to implement
development - are the main reference points. Two-way          innovative new programs, both planned and unplanned.
communication with the community identifies needs,
and involves the community in implementation, as AKR          Below is a summary of some of the social community
innovates new breakthroughs in its programs.                  programs implemented in 2023.




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      EDUCATION
      AKR believes that quality education can serve as a long-term foundation, supporting an individual’s quality of life and well-
      being, making it crucial for sustainable development.




                      Scholarships for High-Achieving Children of Employees
      AKR initiated its scholarship program in 2007, intended         AKR offers the same opportunity to all employees to
      for the children of employees who have excelled in school.      encourage their children and enroll them in the scholarship
      Now, after 16 years of operation, the scholarship recipients    program. For 2023, the company is once again opening
      have grown and developed into talented individuals full of      the opportunity to submit scholarship proposals for
      potential.                                                      these high-achieving children. Additionally, AKR provides
                                                                      assistance to the orphaned children of AKR employees
      For example, Samuel, the child of Mrs. Melyati, has now         who have passed away.
      succeeded in becoming a software designer. Meanwhile,
      Imeli Yuntiana, the child of Mr. Wijitro Janto Hidjatmoko,
      is currently completing her education to become an
      accountant. Lastly, Eric Nainggolan, the child of Mr. Henry
      Nainggolan, is striving to pursue his dream of becoming
      a doctor. All three have received scholarships from
      elementary school to high school and acknowledge that
      the scholarships they received greatly helped them on
      their journey to achieve their aspirations.




                                          AKR’s Collaboration with UGM
      On August 25, 2023, AKR signed a collaboration agreement        Indonesian community. It is hoped that these museums
      with Gadjah Mada University (UGM), aimed at rejuvenating        will contribute to the tourism sector after the revitalization
      their Biopaleoanthropology Museum and the Anatomy               is completed. Additionally, this collaboration is expected
      Museum. These revitalized museums are in Sinduadi               to support the education sector, further solidifying UGM’s
      Village, Sleman, covering an area of 4,257.82 square meters.    position as one of the best universities in Asia.

      The signing of this collaboration was done virtually by
      UGM’s Vice Rector for Planning, Asset, and Information
      Systems, Dr. Arief Setiawan Budi Nugroho, and AKR’s CEO,
      Haryanto Adikoesoemo, marking the 5th collaboration
      between AKR and UGM. Previously, AKR collaborated on
      providing a Data Center, medical tests for heart conditions,
      COVID-19 assistance funding, and cooperation with Taiwan
      in managing COVID-19 patients.

      AKR believes that this collaboration will benefit UGM
      students, especially those from the Faculty of Medicine,
      Public Health, and Nursing (FKKMK), as well as the




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      Visit of the Singapore Management University (SMU) International
                              Advisory Council




On October 8, 2023, AKR Headquarters received a visit           to discuss current conditions and areas for improvement.
from the Singapore Management University (SMU)                  AKR emphasized that significant innovations do not
International Advisory Council. The purpose of SMU’s visit      happen abruptly but rather emerge from a series of smaller
was to gain deeper insights into the company culture of         innovations, with their global impact often becoming
AKR, which is recognized as having a strong workplace           evident after some time.
culture. The visit was warmly welcomed by AKR’s CEO,
Haryanto Adikoesoemo.                                           The Company also recognizes the importance of succession
                                                                planning to ensure the readiness of the next generation to
During the visit, AKR explained that innovations stem from      lead the company in the future.
its operational practices, which include regular meetings




 The Development of Early Childhood Education (PAUD) in the JIIPE Area
                                                  Early childhood education plays a crucial role in human cognitive
                                                  development. Therefore, PT BKMS has taken the initiative to develop
                                                  the Al-Wildan Early Childhood Education Center (SPS/PG-TKI) to meet
                                                  the educational needs in three villages located in the JIIPE area, namely
                                                  Manyarsidomukti Village, Manyarsidorukun Village, and Manyarejo
                                                  Village. The construction of this educational facility was carried out by PT
                                                  BKMS from March to November 2023 with a budget of Rp 703,850,000.
                                                  Currently, this facility is not only used for teaching and learning activities
                                                  but also for community events.




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      HEALTH
      AKR reaffirms its commitment to supporting the                 education, and disease prevention activities. AKR also
      advancement of the surrounding community through               plays a role in supporting local healthcare infrastructure
      sustainable health programs, actively engaging in efforts      and projects that strengthen the capacity of community
      to improve access to and delivery of healthcare services for   healthcare systems. By focusing on health initiatives, the
      communities around its operational areas. This program         Company makes a positive impact on community welfare
      includes providing basic healthcare services, health           and supports sustainable development.




                                     Contributions to Healthcare in Pontianak
      AKR also provided assistance in the form of healthcare facilities and
      equipment to 12 Integrated Health Posts (Posyandu) in the city of
      Pontianak and Kuburaya Regency, West Kalimantan. The donations
      were handed over to the local integrated health posts in October 2023,
      where it is hoped that these facilities and equipment can support the
      health needs of the local residents.

      In 2023, AKR donated notebooks to 17 schools in the city of Pontianak,
      Kuburaya Regency, Mempawah Regency, and Ketapang Regency, to
      assist these schools in improving the quality of education.




                                         Blood Donation Event with AKR
      The spirit of caring for others is continuously promoted among AKR employees. Therefore, AKR continues to encourage all
      eligible employees to donate their blood.




      Blood donation activities were conducted by AKR in the           The blood donation drive at AKR Stagen coincided
      Marunda area in January 2023, where eligible employees           with Navy Day 2023. This humanitarian initiative was
      were encouraged to participate.                                  conducted jointly with the Navy and Pelindo, resulting
                                                                       in a significant number of donors.




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                                  Posyandu Assistance from JTT
The health of the community should be taken care of           The assistance provided by JTT includes providing formula
from infancy to old age, and JTT sees the need to support     milk and measuring tools for blood checks. The assistance
integrated health posts (Posyandu) to provide the best        is provided for three consecutive months.
health services for the community.




                             Support for Pediatric Heart Patients
                                      Empathizing with the difficulties experienced by families with children suffering
                                      from heart disease, the DPR (House of Representatives) has assisted in establishing
                                      a shelter for pediatric heart patients coming from outside Jakarta. Currently, 11
                                      patient families are utilizing this shelter.

                                      Located at Jalan Anggrek Neli Murni, Palmerah, Jakarta, this shelter is managed by
                                      parents of pediatric heart patients whose children have passed away. In practice,
                                      the management faces several challenges such as significant operational costs,
                                      the need for diapers, formula milk, sanitation, mattresses, and so on.




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      COMMUNITY DEVELOPMENT
      AKR is committed to supporting the progress of community empowerment programs, participating in various initiatives
      aimed at improving the welfare and skills of the local community. Positive and sustainable impacts for the community are
      the goal, along with making them partners on the journey towards sustainable development.




                                      AKR Partners with Climate Village
                                                         In the Climate Village initiative, AKR invites the local community
                                                         to actively participate in managing plastic waste and mangrove
                                                         forest preservation. Through support for Adiwiyata schools, AKR also
                                                         promotes environmental education. This has been adopted in AKR
                                                         Stagen and Banjarmasin locations, and has successfully received
                                                         recognition from the Governor of South Kalimantan for transforming
                                                         riverside villages into greener and more sustainable areas.




                                             AKR Sacrificial Donations
      In June 2023, AKR commemorated Eid al-Adha 1444 Hijri         On this occasion, AKR Lampung, AKR Stagen, AKR
      with local residents. The activity was welcomed with          Pontianak, and AKR Banjarmasin donated cows and goats.
      enthusiasm as it allowed everyone to participate and the
      meat was shared with the surrounding community.




         AKR Stagen                     AKR Bandar Lampung                         AKR Banjarmasin




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Highlights                                                                                               and Compliance




                     The Construction of Buildings and Sports Arenas
                                                                 JIIPE supports a healthy lifestyle and community
                                                                 togetherness, erecting the Sports Facility Building in
                                                                 Manyarsidorukun Village. This construction, costing Rp
                                                                 2,075,000,000, provides the community with sports facilities
                                                                 including two badminton and futsal courts, as well as 12
                                                                 stalls for local entrepreneurs to sell their food.

                                                                 It is hoped that with the construction of the sports building
                                                                 and the MASKOT food center, it can contribute to the health
                                                                 of residents and the village economy.




          Renovation of the Fishermen’s Hall in Mengare Kramat Village
The village hall plays a crucial role for the local residents,
serving as a venue for decision-making regarding the
welfare of all village residents. Recognizing the importance
of the village hall, PT BMS took the initiative to renovate
the Fishermen’s Hall in Mengare Village where community
activities can be conducted effectively, and the decision-
making process by the village residents can be optimized.




                     WeConnect: Waste Management Program at JTT
The WeConnect program by Jakarta Tank Terminal (JTT)
has initiated circular economy activities by partnering
with the Youth Organization (Karang Taruna) of RW 07,
Koja, North Jakarta. Twenty-five members of the youth
organization were trained to recycle plastic waste.

The training consisted of five modules conducted before
the arrival of the plastic shredder machine, so when the
machine arrived, the youth organization members were
ready to start the economic activities.

They were trained to sort and shred plastic waste.
Additionally, they received training in financial
administration for the plastic shredding business. With
this training, it is hoped to stimulate further innovations to
address waste issues in the community.




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      Community Development Fund Implementation


      Rp24.19 billion
                                                         Through its CSR programs, AKR has allocated resources to
                                                         various initiatives and diverse activities, such as education,
                                                         health, local economic empowerment, and environmental
      Realization of CSR Program 2023                    initiatives. AKR ensures that funds not only provide direct
                                                         benefits but also contribute to sustainable development
                                                         and the welfare of the involved communities.



      0.3%
      The gross profit of AKR Trading is allocated for
                                                         Throughout 2023, in addition to implementing new
                                                         program initiatives, AKR routinely continued several CSR
                                                         activities that have become regular programs. The total
                                                         realization of AKR’s CSR programs in 2023 amounted to Rp
      CSR purposes.
                                                         24.197.277.383,00



      Corporate Social Responsibility (CSR) Funds        Company AKR Corp’s CSR Fund


      Rp24,197,277,383                                   Rp11,337,010,470
      2023                                               2023




      Rp22,852,287,343                                   Rp20,789,494,843
      2022                                               2022




      Rp28,433,858,498                                   Rp27,581,498,498
      2021                                               2021




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                                                                      www.akr.co.id
Page 146

          
Page 147
   06
Our Conduct:
 Governance,
  Ethics and
 Compliance

        www.akr.co.id
Page 148
148




            AKR regards Good Corporate Governance (GCG) as a primary pillar in
            creating business activities aligned with sustainable values. ensuring that
            management is based on the principles of ethical behavior, accountability,
            transparency, and sustainability.



      STRUCTURE AND COMPOSITION
      OF CORPORATE GOVERNANCE
      [GRI 2-9]



      AKR manages corporate governance to ensure that all               Board of Commissioners and the Board of Directors have
      operational activities are conducted responsibly, with            supporting organs, where each plays an important role
      integrity, achieve sustainable business activities, and           in the application of GCG. Each organ has a responsibility
      provide broad benefits, and adopts Law Number 40 of 2007          to carry out its functions and duties in the interests of the
      concerning Limited Liability Companies as a reference             Company and stakeholders. Through the application of
      for the application of Good Corporate Governance (GCG)            principles of transparency, accountability, responsibility,
      principles.                                                       independence, and fairness, the Company’s performance
                                                                        towards sustainability can be strengthened an improved.
      In its implementation, AKR’s governance structure
      consists of main organs, namely the General Meeting of            Detailed information about AKR’s governance structure
      Shareholders (GMS), the Board of Commissioners, and the           and Company organs can be found in the 2023 Annual
      Board of Directors. To assist in carrying out their duties, the   Report in the Corporate Governance section.




      Selection and Nomination Process of the Governance Body
      [GRI 2-10]


      AKR implements the principle of equality in the corporate         to the Board of Commissioners for decision at the GMS
      governance mechanism to regulate each organ to act                with selected candidates appointed with the approval
      according to their respective functions and roles. In the         of the GMS. The Board of Commissioners and the Board
      selection and nomination process, the General Meeting of          of Directors are appointed based on their qualifications,
      Shareholders (GMS) has full authority to appoint and dismiss      in accordance with the requirements of POJK Number
      the Board of Directors and the Board of Commissioners,            33/POJK.04/2014 regarding the Directors and Board of
      while controlling shareholders can propose names to be            Commissioners of Issuers or Public Companies.
      appointed as members of the Board of Commissioners and
      the Board of Directors. Subsequently, the Nomination and          AKR also has stringent mechanisms to prevent conflicts
      Remuneration Committee (NRC), which is under the Board            of interest, one of which is by prohibiting any affiliation
      of Commissioners, discusses the profiles and qualifications       between members of the Board of Directors, the Board of
      of candidates. The NRC’s recommendations are presented            Commissioners, and controlling shareholders.




      Chairman of the Highest Governance Body
      [GRI 2-11]


      In accordance with Law Number 40 of 2007 concerning               •   Board of Commissioners
      Limited Liability Companies, AKR’s governance structure               The Board of Commissioners is responsible for
      consists of:                                                          supervising the Board of Directors in managing the
      • General Meeting of Shareholders (GMS)                               Company and is supported by two Committees,
         The GMS is the highest governance body where                       namely the Audit Committee and the Nomination and
         shareholders can exercise rights and authority over the            Remuneration Committee.
         management of the Company.




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Highlights                                                                                                and Compliance




•   Board of Directors                                              The Board of Directors serves as the executive board, while
    The Board of Directors is responsible for managing              the Board of Commissioners acts as the supervisory body
    the Company, assisted by the Internal Audit Unit, the           responsible for overseeing the performance of the Board
    Corporate Secretary, and Investor Relations.                    of Directors, led respectively by the Chairman of the Board
                                                                    of Commissioners, a non-executive position, and the
                                                                    President Director, who serves in an executive role.




AKR ESG Committee
As evidence of the Company’s commitment to sustainability, AKR has established an ESG (Environmental, Social, and
Governance) Committee, responsible for determining strategies, providing recommendations, coordinating, reporting,
and monitoring the Company’s ESG initiatives. The ESG Committee is led by and reports directly to the President Director.
[SEOJK E.1]



                                                           BOD - BOC




                                                          ESG Committee




                                                          ESG Task Force




                                        AKR Logistics
                                      and Supply Chain                JIIPE Industrial Estate          BP Joint Ventures,
       AKR Trading &
                                    operations, ATI, AST,               Ports, Utilities and           Manufacturing and
        Distribution
                                    Including Network &                     Operations                  New Initiatives
                                       Operations, JTT




AKR’s ESG Committee in Sustainability                               Delegation of Authority to AKR’s ESG
Management                                                          Committee
[GRI 2-12][SEOJK E.1]                                               [GRI 2-13]

The AKR ESG Committee plays a role in implementing                  With the authority delegated, the AKR ESG Committee
sustainability,    which      encompasses          economic,        ensures that sustainability values and performance are
environmental, and social aspects. This committee                   optimized in every business unit. The ESG Committee
provides guidance and oversight on sustainability that              directly oversees the ESG Task Force consisting of Senior
aligns with AKR’s goals, values, mission, policies, strategies,     Employees in each division. In carrying out its duties, the
and sustainability targets.                                         AKR ESG Committee has the following authorities:
                                                                    1. Accessing data, documents, and other information
Related divisions are responsible for executing the                    needed in the implementation of the Sustainable
established sustainability goals, values, Vision, Mission,             Action Plan.
policies, strategies, and targets. Directors in each division       2. Direct communication with employees including
lead and oversee the implementation of sustainability                  Directors and ESG task force regarding its duties and
policies. Meanwhile, the ESG Committee regularly holds                 responsibilities.
meetings with the respective division heads to assess               3. With the approval of the Board of Commissioners,
sustainability performance.                                            involving independent parties outside the ESG
                                                                       Committee members, if needed, to assist in the
                                                                       execution of its duties.
                                                                    4. Carrying out other authorities granted by the Board of
                                                                       Commissioners.




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      The detailed tasks and responsibilities of AKR’s ESG            •   Reporting and coordinating with regulators, including
      Committee are as follows:                                           the Indonesia Stock Exchange (IDX), the Financial
      1. Reviewing business processes and identifying as                  Services Authority (OJK), and other relevant regulators.
         well as managing AKR’s operational impacts on the            •   Providing updates on new developments in ESG
         environment, social aspects, and governance.                     standards,    including      disseminating    the     latest
      2. Observing      and     scrutinizing  regulations       and       regulations to the Board of Directors, Board of
         developments in Indonesian and international                     Commissioners, and Committees under the Board of
         sustainability standards, determining relevant materials         Commissioners.
         for AKR, and providing recommendations to the ESG            •   Assisting the Board of Directors and Board of
         task force to formulate strategies, policies, targets, and       Commissioners in establishing the ESG Committee and
         sustainability guidelines.                                       formulating the ESG roadmap and framework, as well
      3. Periodically reviewing AKR’s sustainability strategies,          as setting AKR’s sustainability strategy and pillars.
         policies, targets, and guidelines.                           •   Organizing workshops related to ESG and sustainability.
      4. Regularly assessing the performance of AKR’s                 •   Conducting materiality assessments and prioritized
         Sustainability Commitments.                                      topics.
      5. Evaluating the effectiveness of communication in             •   Facilitating AKR’s initiatives in renewable energy.
         disseminating AKR’s sustainability policies to internal      •   Coordinating the implementation of CSR programs.
         and external stakeholders.                                   •   Maintaining good relations between stakeholders, the
      6. Participating in the development of public policies              Corporate Secretary and Capital Market community.
         related to climate change and environmental impacts.         •   Introducing and providing information about the
                                                                          Company’s strategic investments to stakeholders at
      The Corporate Secretary Remains                                     various events, including GMS, investor roadshows,
      Active in Ensuring the Integration of                               media, the Company’s website, and social media.
      Sustainability Principles within AKR and
                                                                      During 2023, the ESG Committee held 2 (two) meetings,
      for the Board of Directors and Board of
                                                                      fulfilling its duties and responsibilities, including:
      Commissioners
                                                                      • Establishing the Company’s ESG Strategy and
      [GRI 2-13]
                                                                         formulating targets;
                                                                      • Directing the development of necessary ESG Policies;
      The Company’s Corporate Secretary plays an active and
                                                                      • Directing the ESG program for 2023; and
      central role in ensuring that the ESG Committee and ESG
                                                                      • Directing the development of a new Code of Ethics and
      Task Force remain updated with the latest developments.
                                                                         its socialization.
      In 2023, the Corporate Secretary team took the initiative to
      carry out several key activities, including:




      Sustainability Competency Development
      [GRI 2-17][SEOJK E2]


      AKR enhances the knowledge and competency of board              sustainable practices, from top management level to
      members in sustainability through various training              operators and frontliners in the field. The workshop and
      programs, such as short courses, workshops, seminars,           training topics included:
      and involvement in sustainability projects. The Company         • Energy Conservation
      also provides reporting guidelines and updates on               • Exploration of New Environmentally Friendly Energy
      sustainability topics.                                             Sources
                                                                      • Environmental Protection and Preservation
      In 2023, workshops related to sustainability and PROPER
      (Environmental Performance Rating Program) were                 Special training for the Board of Directors on sustainability,
      conducted to increase environmental awareness and               conducted throughout 2023, included:


       No.              Title of Training             Organizer              Training Date                 Training Venue


       Suresh Vembu

                                                                                                  Bursa Efek Indonesia & PwC
         1    ESG Strategy and Rating           19 Januari 2023           Zoom
                                                                                                  Indonesia

        2     IFRS S1 & S2                      22 Desember 2023          Jakarta                 IAI & Bursa Efek Indonesia




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 No.           Title of Training               Organizer                  Training Date            Training Venue


 Suresh Vembu

        Sharing ESG MUFG SG w/
   1                                    6 Maret 2023                   Jakarta               Bank MUFG
        AKR




Performance Evaluation of the Governance Body
[GRI 2-18]


The AKR remuneration policy incentivizes and rewards            compliance with governance principles are integral parts
the performance of the Board of Commissioners and               of determining remuneration, reflected in the promotion
the Board of Directors for financial aspects and long-          of social and environmental responsibility, as well as GCG
term and sustainable achievements. Through the Annual           as a crucial pillar of long-term success.
General Meeting of Shareholders (AGM), AKR evaluates
performance based on the application of Good Corporate          The CEO evaluates the annual performance of the
Governance (GCG) principles and follow-ups from previous        Directors, while the Nomination and Remuneration
evaluation recommendations.                                     Committee (NRC) is responsible for evaluating the annual
                                                                performance of the CEO. The results of these evaluations
Additionally, the Board of Commissioners and the                not only focus on financial achievements but also consider
Board of Directors are responsible for achieving Key            performance in environmental, social, and governance
Performance Indicators (KPIs) specifically related to the       aspects, serving as a basis for determining Director
Company’s strategy and implementation plans, including          remuneration and providing guidance for improvements
sustainability targets. Non-financial aspects such as           based on self-assessment results.
operational performance, environmental, social, and




TRANSPARENCY
AND ACCOUNTABILITY
Transparency and accountability are key to AKR achieving        AKR’s commitment to transparency and accountability,
progress and sustainability, thus achieving the goal of         especially regarding the Company’s sustainability
becoming a trusted and sustainable energy company.              performance, is demonstrated through achievements and
                                                                recognition by external parties, including:
Commitment to transparency is consistently implemented          • Transparency: Calculation of Corporate Emissions 2023
through openness in decision-making processes and                  Platinum Category from BGK Foundation
disclosing relevant information about the Company. The          • Indonesia Excellence GCG Awards 2023 - AKRA
commitment to accountability is carried out through clarity        Managing a High Level of Company Performance in
in the functions, implementation, and accountability of the        GCG Ethics, from Warta Ekonomi
organs, ensuring effective management of the Company.           • Top 50 Big Capitalization Public Listed Company 2023
                                                                   from IICD
                                                                • Indonesia Top 20 GCG Awards 2023 in Trading &
                                                                   Distribution from The Iconomics




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      The Role of the Governance Body in Preparing
      Sustainability Reports
      [GRI 2-14]


      The governance body is crucial to the process of preparing     of transparency quality including financial reporting, and
      sustainability reports, where the Board of Directors           assisting in reviewing the independence and objectivity of
      is responsible for leading, managing, and directing            public accountants. The Nomination and Remuneration
      operational activities. Under the leadership of the            Committee (NRC) is chaired by an Independent
      President Director, the Board of Directors works to ensure     Commissioner who has no affiliation with the Board
      the realization of the sustainability Vision and Mission,      of Commissioners, the Board of Directors, and major
      which includes environmental, social, economic aspects,        shareholders of the Company.
      and the application of good governance principles.
                                                                     The AKR ESG Committee together with the Board of
      Oversight responsibility is given to the Board of              Directors is also actively involved in the preparation
      Commissioners supported by two Committees, namely the          of this Sustainability Report, ranging from organizing
      Audit Committee and the Nomination and Remuneration            workshops with representatives from all business lines,
      Committee, chaired by one of the Commissioners. The            approving material topics for this report, preparing the
      Audit Committee assists the Board of Commissioners             AKR Sustainability House including action areas, and
      in promoting the implementation of good governance,            formulating the Company’s Net Zero Emission 2060
      adequate internal control structures, the improvement          commitments.




       To Achieve Responsible Business, AKR Enhances GCG Quality Through
                       CoC and HSE Policies Socialization
      AKR is committed to practicing Good Corporate Governance and emphasizing governance principles. To fulfil this
      commitment, AKR undertook several initiatives in 2023, including:


      Socialization of Code of Conduct (CoC)                         Human Rights and Environmental Policy
      The Code of Conduct has been updated, in line with the         In 2023, AKR established Human Rights and Environmental
      latest standards, and socialized to all employees. The Code    Policies to align with sustainability values, representing
      of Conduct serves as a guideline for employees to carry        AKR’s commitment to both in its business operations. The
      out their duties and functions based on values of integrity,   Human Rights Policy can be accessed on the Company’s
      professionalism, and compliance with regulations, and          website at https://www.akr.co.id/esg/esg-overview/human-
      socialization emphasizes the role of stakeholders in           rights-policy , while the HSSE Policy is available at the link
      monitoring violations through the whistleblowing system.       https://www.akr.co.id/esg/esg-overview/hsse-policy.




      Remuneration Policy
      [GRI 2-19]


      Members of the Board of Commissioners are entitled to receive monthly honorariums, while members of the Board of
      Directors receive compensation consisting of basic salary, performance bonuses, facilities, allowances, and management
      stock options. All Commissioners and Directors are also covered by insurance.




      Determination of Remuneration Process
      [GRI 2-20]


      The process includes strict stages, established by the shareholders in the Annual General Meeting (AGM) and based on
      recommendations from the Nomination and Remuneration Committee (NRC). The NRC considers assessment results in
      providing recommendations for the Directors. In this regard, the Company does not engage external consultants.




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Highlights                                                                                                   and Compliance




Total Annual Compensation Ratio
[GRI 2-21]


Due to data confidentiality reasons, AKR cannot disclose detailed ratios of annual compensation of individuals with the
highest pay compared to the total average annual compensation for all employees, as well as the percentage increase in
the annual compensation ratio, in this Sustainability Report. Information on the total remuneration received by the Board
of Directors and the Board of Commissioners of the Company for 2023 can be found in the Company’s Annual Report in
the Corporate Governance section.




Whistleblowing Mechanism
[GRI 2-26][GRI 2-16]


AKR has implemented a violation reporting system and                  Communication with the reporter is conducted
added a whistleblowing system reporting channel to report             confidentially by the Whistleblower Protection Officer. This
alleged violations of ethics, policies, or laws related to the        happens if information or clarification is needed for further
Company’s activities, a strategic effort in building a culture        investigation processes.
of integrity and transparency. Through this channel, every
employee, third-party vendor, supplier, and stakeholder               To strengthen the whistleblowing disclosure mechanism,
can report their concerns safely and confidentially.                  AKR implemented the following initiatives in 2023:
                                                                      • Regularly socializing the whistleblowing system facility,
AKR can receive reports of alleged violations in any form,               especially when updating ethical and behavioral
including fraud, corrupt practices, breaches of the Code of              guidelines.
Ethics, or legal violations. In practice, reports are received        • Increasing awareness of ethical behavior to prevent
directly by the President Director, whereupon they are                   violations.
carefully and meticulously investigated by the Internal               • Reducing the risk of violations through early detection
Audit Unit, in accordance with the regulations and                       mechanisms.
provisions applicable to the Company.                                 • Enhancing the Company’s reputation in the eyes of
                                                                         shareholders, stakeholders, regulators, and the public.

                                                                      As of 2023, the reporting channels owned by the Company
                                                                      include:
                                                                      [GRI 2-26]



      Website/Online Form-Based Reporting System

      https://wbs.akr.co.id
      Email addressed to

      lapor.haryanto.adikoesoemo@akr.co.id
      WhatsApp Number

      +62 811-1321-911


AKR strives to optimize the reporting process of critical             In making reports, whistleblowers are required to provide
matters, including those related to economic, social, and             initial, factual indications regarding the reported fraud
environmental aspects, so that they can be addressed and              or violations, accompanied by supporting data (if any),
followed up effectively.                                              including:



         WHAT                         WHO                         WHEN                   WHERE                      HOW


  Actions/Incidents                                                                 Place/Location of
                                 Involved Parties           Time of Occurrence                               How It Happened
      Reported                                                                         Occurrence




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      Whistleblowers also have the right to protection to ensure    5. Protection for whistleblowers also applies to parties
      their safety, which includes:                                    conducting investigations or providing information
      1. Assurance of confidentiality of identity and the content      related to the complaint,
         of the report submitted, except at the request of law      6. If receiving retaliation in the form of pressure, threats,
         enforcement,                                                  or other retaliatory actions, whistleblowers can report to
      2. Assurance of protection against detrimental treatment,        the President Director. In case the reported issue cannot
         such as:                                                      be resolved internally, whistleblowers are guaranteed
         a. Unfair dismissal;                                          the right to bring the report to an independent
         b. Demotion or reduction in rank;                             institution outside the Company.
         c. Harassment or discrimination in any form;
      3. No detrimental records in the personal file record,        At the end of 2023, no material reports had been recorded
      4. Assurance of protection from possible threats,             by the Company’s whistleblowing system.
         intimidation, punishment (criminal or civil), or other
         actions from the accused party,




      RISK
      MANAGEMENT
      [SEOJK E.3][GRI 2-23]



      AKR prioritizes prudence and risk management to               resilience, understanding that sustainable growth cannot
      anticipate various challenges, such as economic dynamics,     be separated from responsible financial planning and risk
      business climate, and increasingly complex competition.       management, which includes a sharp focus on reducing
      Therefore, a business philosophy emphasizing the              environmental impacts, enhancing social contributions,
      importance of risk awareness and structured, planned          and adhering to the highest governance standards.
      risk management has been implemented in various
      operational activities.                                       In line with this understanding, the Board of Directors
                                                                    conducts an annual review of the Company’s capital
      Risk management is an integral part of the business plan,     structure and debt, carefully examining their alignment
      allocated separate funding sources. AKR is continuously       with strategic objectives and risks, including sustainability-
      developing a range of risk management procedures and          related risks and climate change challenges.
      methodologies to identify, analyze, evaluate, and mitigate    This review process is part of a broader and comprehensive
      risks, thus providing assurance and peace of mind to          risk management framework that not only focuses on
      stakeholders.                                                 financial health but also incorporates environmental,
                                                                    social, and governance (ESG) considerations.
      In accordance with the ASEAN Corporate Governance             This approach ensures that capital allocation strategies
      Scorecard (ACGS) framework, AKR continues to strengthen       and debt management are designed not only to optimize
      the integration of sustainability with corporate governance   financial performance and value for shareholders but
      and strategic planning. AKR understands the importance        also to make positive contributions to communities, the
      of sustainability in driving long-term business success and   environment, and stakeholders.




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Risk Management and Internal Control System
[GRI 2-24]


AKR employs a top-down and bottom-up approach in risk                      such as inflation rates, Gross Domestic Product
management. In the top-down approach, the Board of                         (GDP) growth, taxation, and various developments
Directors evaluates overall key risks, while in the bottom-                in Indonesian politics and economics are also risk
up approach, Department/Branch/Subsidiary Leaders                          factors that need attention.
assess specific risks in each unit/business.                            b. Government Policy Change Risks
                                                                           The risk of government policy changes can both
To strengthen accountability, risk management is then                      hinder and open opportunities for domestic business
conducted collectively and coordinated with the Enterprise                 activities. Policy changes in taxation, currency
Risk Management (ERM) Department at Head Office. The                       controls, interest rates, import-export restrictions,
ERM Department is responsible for managing business                        subsidized fuel formulation, labor regulations,
risks identified by AKR.                                                   licensing, and investments can impact performance.
                                                                           Most fuel products and certain basic chemical
The roles and responsibilities of the ERM Department are:                  products traded and distributed by the Company are
[GRI 2-24]                                                                 imported from abroad. If there are policy changes,
1. Develop and propose risk management concepts and                        import bans, import quota restrictions, customs
   frameworks, risk appetite, risk philosophy, risk tolerance,             regulations, or import tariffs, performance could be
   and risk management structures to the President                         affected. The allocation of subsidized fuel distribution
   Director in line with the Company’s vision and mission.                 contracts in the following years, in addition to being
2. Implement and communicate risk management                               based on government tender processes and the
   policies & procedures continuously and consistently.                    continuity of deregulation policies, also depends on
3. Ensure that all significant/key risks are identified,                   the Company’s ability to meet various criteria.
   measured, and mitigated appropriately.
4. Submit priority risks requiring immediate attention               2. Industry Risk
   from Management, based on the existing risk profile                  Supply and demand from industries where the
   and considering the impact and likelihood of the risks               Company       operates    affect   AKR’s     performance.
   after assessing the effectiveness of existing internal               Trading and distribution segments are influenced by
   controls.                                                            demand for basic chemicals and fuel, which depends
5. Ensure and continuously monitor the implementation                   on national and regional economic conditions in
   of established risk mitigation plans according to the set            Indonesia. A risk of dependence on demand has
   timelines.                                                           led to the Company providing logistics services and
6. Review and provide input to Branch/Division/                         distribution infrastructure to third parties in Indonesia.
   Department/Subsidiary         leaders       regarding    risk        Economic slowdowns in Indonesia and globally can
   mitigation plans, including addressing current                       affect international trade, which subsequently causes
   issues arising during the implementation process of                  a decrease in shipping activities and demand for
   established mitigation plans.                                        logistics services. In addition to risks related to supply
7. Validate and verify (especially key risks) existing risk             and demand levels, the Company faces competition
   controls and the progress of risk mitigation plans/                  risks from companies engaged in similar activities. To
   action plans through direct visits to branches, divisions,           anticipate this, the Company continues to improve
   departments, and subsidiaries.                                       its logistics infrastructure in distributing energy and
8. Conduct ongoing campaigns to develop a culture of                    industrial raw materials, maintains good relationships
   care, ownership, and risk awareness by emphasizing                   with suppliers, and improves service quality to
   that risk is the responsibility of all individuals at AKR.           customers.
9. Prepare and report Consolidated Risk Management
   Reports to the President Director and relevant Directors          3. Operational Risk
   periodically.                                                        Operational risks arise when there is a failure to meet
                                                                        standard operating procedures, employee management
The risks faced by the Company and its risk management                  failures, system disruptions, and external factors or
efforts are as follows:                                                 events such as weather changes, natural disasters, and
1. Country Risk                                                         supply chain disruptions. As these risks are related to
   The macroeconomic conditions of Indonesia, political                 the Company’s daily operations, standard operational
   situation, and government regulations affecting the                  procedures are continually updated and improved
   Company and other businesses operating in Indonesia.                 to align with business demands and technology.
   a. Economic and Geopolitical Risks                                   The Company has also built backup technology and
      Economic and geopolitical risks remained a                        operational systems in case main systems fail. A
      major concern in 2023, such as potential tensions                 centralized IT system supports monitoring in product
      between countries and changes in global economic                  storage and distribution and employees responsible
      dynamics which could impact the Company. Careful                  for these systems receive regular training to enhance
      implementation of risk mitigation is needed to                    their skills and vigilance. To ensure that operational
      anticipate potential impacts. Additionally, conditions            risk management runs smoothly and sustainably, the



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         Company applies the Three Lines of Defence, namely              management is detailed in the audited consolidated
         (a) business units managing daily operational risks as          financial statements by the public accounting firm
         preventive control, (b) risk management as detection            Purwantono, Sungkoro & Surja (a member firm of Ernst
         control, and (c) quality assurance as corrective control.       & Young).

      4. Safety, Health, and Environment (SHE) Risks                  6. Pandemic Risk
         The Company may encounter Safety, Health, and                   The pandemic risk (COVID-19) still needs to be managed
         Environment (SHE) risks, given its operational sectors.         globally and domestically. This risk potentially affects
         These include fires, product spills, mishandling of             the management of other risks (country, industry,
         waste, malfunctioning equipment, system failures, and           operational, SHE, and financial risks). Therefore, the
         so forth. SHE risks not only affect the Company but             Company continues to implement risk mitigation
         also impact the communities around its operational              measures conducted in previous periods while
         areas. To avoid these hazardous risks, the Company              adapting to the existing conditions (pandemic trends).
         implements strict and detailed regulations regarding            Measures implemented include the establishment
         workplace safety and provides training for employees            of a task force to monitor and routinely conduct
         to manage unforeseen circumstances. SHE procedures              campaigns/socialization to all employees regarding the
         are continually updated according to government and             dangers of COVID-19 and the implementation of the 5M
         organizational regulations, and certifications in specific      protocol (wearing masks, washing hands, maintaining
         areas.                                                          distance, reducing travel, and boosting immunity), the
                                                                         implementation of booster vaccinations for employees,
      5. Financial Risks                                                 and regular antigen swab tests.
         The main financial risks are credit risk, market risk
         (including interest rate risk, foreign exchange risk,           Additionally, AKR has established an Internal Control
         commodity price risk), and liquidity risk. Regarding            System to ensure that operational activities are
         credit risk, the Company applies strict monitoring              conducted in accordance with the highest professional
         in extending credit to customers. For the risks of              standards applicable in the business world, especially in
         commodity price fluctuations and foreign exchange               the industries run by AKR. This internal control process
         rates, the Company implements a stable business                 is designed, implemented, and monitored by the Board
         model with price-based formulas and manages forex               of Commissioners and Directors, and involves the active
         risk through hedging. The Company’s financial risk              role of all Company employees.




                    AKR’s Authorised Economic Operator (AEO) Certification
      As a commitment to conducting corporate governance              AEO was established to ensure the security of the supply
      management in line with sustainability values, AKR has          chain by parties involved in the international movement of
      successfully obtained the Authorised Economic Operator          goods, thereby qualifying for specific customs treatment
      (AEO) certification. AEO is a program established by the        by the relevant countries. AEO also helps reduce the risks of
      World Customs Organization (WCO), and the certificate is        international trade and addresses the increasing volume.
      issued by the Directorate General of Customs and Excise.        This certification is crucial for companies aiming to export
                                                                      to other countries, to enhance the speed and security of
                                                                      both import and export supply chains.




                                             Training Refreshment HOTT
      Safety and operational excellence are top priorities for        Risks are discussed from both financial and SHE (Safety,
      AKR in every business activity. To ensure this is achieved,     Health, and Environment) perspectives. Furthermore,
      the Head of Tank Terminal (HoTT) routinely attends              mitigation steps are also discussed, as well as emergency
      refreshment training focused on risk management in              response if these risks occur. The refreshment training
      every process at the Tank Terminal.                             is conducted by Mahdi, Head of Tank Terminal and
                                                                      Warehouse HO. This training aims to increase awareness
                                                                      and understanding among the HOTT members about the
                                                                      importance of controlling and monitoring work processes
                                                                      at the Terminal, in order to minimize risks and achieve
                                                                      operational excellence.




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Sustainable          Company              Our Business           Our                 Our                  Our Conduct:
Performance          Profile              Portfolio              People              Communities          Governance, Ethics       157
Highlights                                                                                                and Compliance




AKR’s Internal Control System refers to the internationally           entities, management philosophy and operating
recognized framework known as the Committee of                        style, the provision of authority and responsibility, and
Sponsoring Organizations of the Treadway Commission                   organization and development of the business in line
(COSO). COSO defines an internal control system as a                  with management directives.
process involving the Board of Commissioners, Directors,           2. Risk assessment aims to identify, analyze, and manage
and other personnel. This aligns with AKR’s Internal                  risks associated with various business activities.
Control System, which continuously builds organizational           3. Control activities determine policies and procedures
control by involving all employees.                                   established by management to help ensure business
                                                                      objectives are achieved.
The Internal Control System provides adequate assurance            4. Information and communication enable individuals
regarding the achievement of the following three                      or entities to obtain and exchange the necessary
objectives:                                                           information to conduct, manage, and control operations.
1. Effectiveness and efficiency of operations                      5. Monitoring aims to assess the quality of the company’s
2. Reliability of financial reporting                                 performance. This occurs through continuous
3. Compliance with applicable laws and regulations                    monitoring activities, separate evaluations, or a
                                                                      combination of both.
AKR views internal control as a series of actions
encompassing all business processes and part of the                For more detailed information about AKR’s Risk
basic management process, which includes planning,                 Management and Internal Control System, please refer
implementation, and monitoring. Components include:                to the 2023 Annual Report in the Corporate Governance
1. Control environment, which includes the integrity,              section.
   ethical values, and competencies of individuals and




Risk Management Evaluation
[GRI 2-26]


AKR implements a comprehensive and integrated risk                 enables strategic and informative decisions to be made
management framework which aims to provide early                   regarding operations and subsidiaries.
information about potential risks that may affect the
Company, allowing adequate steps to be taken to minimize           To enhance risk awareness culture, AKR conducted a series
risks.                                                             of activities throughout 2023, such as:
                                                                   • Re-socialization/refreshment          regarding    risk
Risk management has positively contributed to the                     management and its practices to all company
planning process, decision-making, and strengthening                  employees,
of Good Corporate Governance (GCG). The applied risk               • Conducting risk campaigns using screen saver and lock
management system can minimize and/or reducing the                    screen media, newsletter media, and
impact and likelihood of risks, evident from the effectiveness     • Implementation of surveys at the end of the year to
of the quality, quantity, and timeliness of completing                assess the risk owners’ understanding regarding the
the risk mitigation plan. AKR’s risk management system                risk management campaigns conducted.




Financial Implications and other Risks Due to Climate
Change
[GRI 201-2]

Climate change is one of the biggest challenges faced              AKR’s business resilience has been proven over time, from
by the global community and it can significantly impact            the initial steps 64 years ago in the logistic and supply
various aspects of life, including business activities.            chain field, to a diversified business with core competence
Understanding this, AKR adopts sustainable and                     in the supply chain of chemicals and fuel for B2B and retail,
responsive strategies to climate change to reduce financial        to its current active role in championing manufacturers in
risks and ensure long-term sustainability.                         Indonesia through the JIIPE Special Economic Zone (SEZ).

Currently, AKR is conducting a risk and opportunity                In 2022, through the decision of the ESG Committee, AKR
inventory of climate change on its respective business             committed to achieving net zero emissions (NZE), in line
activities. The risk and opportunity maps will then become         with the Indonesian government, by 2060. This long-term
one of the management bases in determining policy                  goal will be one of the ESG Committee’s future work focuses
direction, including AKR’s expansion strategy and business         as part of one of the Action Areas in the AKR Sustainability
portfolio diversification in the future.                           House to conduct business and operational reviews, and to
                                                                   establish roadmaps with measurable targets so that AKR
                                                                   can achieve NZE by 2060.

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      BUSINESS ETHICS
      AND COMPLIANCE
      [GRI 2-27]



      Business ethics and compliance form a solid foundation          AKR ensures that its actions comply with applicable
      for the company in achieving GCG and ensuring the long-         laws and regulations, including environmental, social,
      term sustainability of business activities. Implementation      economic, product, customer protection, human rights,
      of business ethics and compliance is a key pillar to support    labor, anti-corruption and bribery, taxation, and other
      accountability to the environment, society, and other           relevant areas. To ensure this, AKR conducts Legal Due
      stakeholders. AKR instils these principles in all operational   Diligence in accordance with the ASEAN Corporate
      activities.                                                     Governance Scorecard (ACGS).

      The enforcement of business ethics and compliance               As of the end of the reporting year, there were no monetary
      is implemented comprehensively, consistently, and               or non-monetary sanctions related to the company’s non-
      universally, with every employee required to sign a             compliance with applicable laws and regulations.
      Code of Conduct and adhere to it in their daily activities.
      Periodically, various activities emphasize the application
      of the code for employees, as violations may result in
      warnings and termination of employment.




                                         Sustainable Procurement Policy
      In 2023, AKR implemented a Sustainable Procurement Policy, designed to regulate procurement, and integrate
      sustainability principles into all stages of the procurement process. This includes supplier selection, risk assessment, and
      performance monitoring. With this policy in place, AKR manages every step in its supply chain, considering environmental,
      social, and economic aspects, and promotes responsible and sustainable business practices. This policy can be viewed on
      the Company’s website at https://www.akr.co.id/esg/esg-overview/sustainable-procurement-policy




      Conflict of Interest
      [GRI 2-15]


      Conflict of interest is a challenge in implementing GCG.        2. Directors must avoid any activities that could affect
      AKR understands the risk of conflicts of interest and is           their independence in overseeing operations.
      committed to complying with the Financial Services              3. Directors are obliged to fill out a Special List containing
      Authority Regulation No. POJK.04/2019 concerning                   their share ownership and/or their family’s share
      Affiliate Transactions and Conflict of Interest in Certain         ownership in other companies.
      Transactions. To prevent conflicts of interest and protect      4. In case of a conflict of interest, it must be disclosed,
      AKR and its shareholders from potential consequences,              and the involved Directors should not participate in
      principles have been established, specifically directed at         decision-making processes.
      the Directors, including the following:                         5. Directors are obliged to make statements regarding
      1. Directors must avoid conflicts of interest in carrying out      conflicts of interest in matters contained in the
         their duties, and not exploit their positions for personal      Company’s Work Plan and Budget.
         gain or for the benefit of related individuals or parties.




        Sustainability Report 2023
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Sustainable         Company              Our Business          Our                  Our                  Our Conduct:
Performance         Profile              Portfolio             People               Communities          Governance, Ethics       159
Highlights                                                                                               and Compliance




Anti-Corruption Commitment
[GRI 205-1] [GRI 205-2][GRI 205-3]


An anti-corruption commitment is a foundation for                As a tangible manifestation of the commitment to support
building strong relationships with stakeholders, creating        the eradication of corruption, collusion, and nepotism
long-term value, and maintaining business sustainability.        (KKN), AKR has created an Integrity Pact that must
In conducting its business activities, AKR opposes all forms     be signed by every employee. In the Integrity Pact, all
of corruption and bribery-related violations.                    procurement processes must be conducted transparently
                                                                 in accordance with the Code of Ethics. Therefore, suppliers
The company has anti-corruption policies and procedures,         are also required to sign the Integrity Pact. This ensures
creating a work ecosystem that upholds ethics and                that all suppliers act honestly, avoid giving gifts or bribes,
honesty, and ensures that business practices are free from       and prevent corrupt practices in the procurement process.
all forms of corruption and gratuity-related violations.         In addition, the Integrity Pact serves to train all employees
AKR’s anti-corruption policy is implemented in accordance        to avoid KKN practices.
with Law No. 20 of 2001 concerning Amendments to Law
No. 31 of 1999 concerning the Eradication of Corruption.




100%                      employees
have signed the Integrity Pact and have been provided
with orientation on the Company’s Code of Ethics,
which includes the commitment to Anti-Corruption.




AKR consistently takes a firm stance against violations. For     Suppliers and vendors found to be in violation of the
employees found to be in violation of the Integrity Pact,        Integrity Pact, especially concerning corruption and
consequences range from moral sanctions, administrative          gratuities, will face consequences in accordance with
penalties, to civil and/or criminal liability claims, in         applicable laws and regulations, including contract
accordance with applicable laws and regulations.                 termination without any compensation or indemnity from
Additionally, individuals proven to be in violation must be      the company.
willing to resign without receiving any compensation.
                                                                 There were no reports of regulatory violations related to
                                                                 corruption and gratuities received by the company in 2023.




Participation in Public Policy Formulation
AKR actively participates and contributes to the                 foundation for achieving sustainability goals and long-
development of various public policies with relevant             term positive impacts. The business associations in the
parties, including the government, by providing a business       sectors in which AKR operates serve as our forum for
ecosystem that supports optimal and sustainable                  collective input.
economic growth. These initiatives aim to create a solid




Policy on Political Involvement
AKR adopts a neutral stance and does not favor or support        The Company avoids contributing to political causes,
any specific political party. This ensures that business         including to specific political groups. Additionally, AKR
activities remain transparent, independent, and free from        explicitly prohibits the use of its facilities for practical
influences that may lead to conflicts of interest.               political activities, requiring employees running for
                                                                 political office to resign from their positions.
                                                                 [GRI 415-1]




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      LIST OF DISCLOSURE BASED ON POJK
      NO.51/POJK.03/2017
      [SEOJK G.4]




       No. Indeks                                             Nama Indeks                                  Halaman

       Sustainability Strategy

           A.1        Explanation on Sustainability Strategies                                               44

       Ikhtisar Kinerja Aspek Keberlanjutan | Overview of Sustainability Aspects Performance

           B.1        Economy Aspects                                                                        6-7

           B.2        Environmental Aspects                                                                  6-7

           B.3        Social Aspects                                                                         6-7

       Profil Perusahaan | Company Profile

           C.1        Vission, Mission, Sustainable Values                                                   21

           C.2        Company Address                                                                        27

           C.3        Business Scale:
                      a. Total assets or assets capitalizationm and total liabilities;
                      b. Total employee based on gender, position, age, education and employment status;   18; 28
                      c. Percentage of share ownership; and
                      d. Operational area.

           C.4        Product, Service and Business Activities                                             18; 23

           C.5        Member Association                                                                     34

           C.6        Significant Changes                                                                    11

       Penjelasan Direksi | Director Explanation

           D.1        Director Explanation                                                                   35

       Tata Kelola Keberlanjutan | Sustainable Corporate Governance

           E.1        Person in Charge Responsibility for Sustainable Finance                              42; 43

           E.2        Sustainable Finance Competency Development                                            150

           E.3        Sustainable Finance Risk Assessment Implementation                                    154

           E.4        Stakeholders Relations                                                                48-49

           E.5        Sustainable Finance Implementation Problems                                            46

       Kinerja Keberlanjutan | Sustainable Performance

           F.1        The Activities of Building a Culture of Sustainability                                 46

       Kinerja Ekonomi | Economic Performance




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Keberlanjutan                                                                                         dan Kepatuhan




 No. Indeks                                                 Nama Indeks                                          Halaman

      F.2       Comparison of Production Targets and Performance, Portfolio, Financial Targets, or
                                                                                                                     63
                Investment, Revenue and Profit

      F.3       Comparison of Portfolio Targets and Performance, Financing Targets, or Investments
                in Financial Instruments or Projects in Line With the Implementation of Sustainable                  67
                Finance

 Kinerja Lingkungan Hidup | Environmental Performance

      F.4       Environment Cost Incurred                                                                            88

 Aspek Material | Material Aspect

      F.5       Use of Environmentally Friendly Materials                                                         26; 68

 Aspek Energi | Energy Aspect

      F.6       The Amount and Intensity of Energy Used                                                              78

      F.7       Efforts and Achievement of Energy Efficiency Including Use of Renewable Energy Sources               78

 Aspek Air | Water Aspect

      F.8       Water Used                                                                                           83

 Aspek Keanekaragaman Hayati | Biodiversity Aspect

      F.9       Impacts from Operational Areas Close to or in Conservation Areas or Having Biodiversity              87

     F.10       Biodiversity Conservation Efforts                                                                    87

 Aspek Emisi | Emission Aspect

      F.11      The Amount and Intensity of Emissions Produced by Type                                          80; 81; 82

     F.12       Efforts and Achievement Emission Reduction Carried Out                                            79; 82

 Aspek Limbah dan Efluen | Waste and Effluent Aspect

     F.13       The Amount of Waste and Effluent Produced by Type                                                 84; 86

     F.14       Mechanism of Waste and Effluent Management                                                           85

     F.15       Spills that Occur (if any)                                                                           85

 Aspek Pengaduan Terkait Lingkungan Hidup | Environmental Complaint Aspect

     F.16       The Amount and Material of Environmental Complaints Received and Resolved                            88

 Kinerja Sosial | Social Aspect

     F.17       Commitment to Provide Services for Equivalent Products and/or Services to Consumers                  68

 Aspek Ketenagakerjaan | Employment Aspect

     F.18                                                                                                        95; 107;
                Equality of Employment Opportunities                                                            108; 114;
                                                                                                                  115

     F.19       Child Labor and Forced Labor                                                                         94




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      No. Indeks                                           Nama Indeks                                      Halaman

         F.20        The Regional Minimum Wage                                                              111;114

         F.21        Decent and Safe Working Environment                                                     96; 107

         F.22        Training and Capacity Building of Employees                                            118; 119

      Aspek Masyarakat | Society Aspect

         F.23        Operational Impacts to the Surrounding Community                                          135

         F.24        Public Complaints                                                                         135

         F.25                                                                                               136; 137;
                     Environmental and Social Responsibility Activities
                                                                                                              140

      Responsibilities for Developing Sustainable Products/Services

         F.26                                                                                               60; 65; 70;
                     Innovation and Development of Sustainable Financial Products and/or Services
                                                                                                                79

         F.27        Products/Services that have been Evaluated for Safety for Customers                        65

         F.28        Products/Service Impacts                                                                   67

         F.29        Number of Products Recalled                                                              66; 68

         F.30        Customer Satisfaction Survey of Sustainable Finance and/or Services                        68

      Others

         F.26        Written Verification from an Independent Party (if any)                                    15

         F.27        Feedback Form                                                                              15

         F.28        Feedback on Previous Year’s Sustainability Report                                          15

         F.29        Disclosure List Based on POJK No.51/POJK.03/2017 regarding the Implementation of
                     Sustainable Finance for Financial Services Institutions, Listed Companies and Public      160
                     Companies




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Ikhtisar             Profil               Our Business        Our                  Our             Our Conduct:
Kinerja              Perusahaan           Portfolio           People               Communities     Tata Kelola,Etika        163
Keberlanjutan                                                                                      dan Kepatuhan




GRI CONTENT
INDEX

                           PT AKR Corporindo Tbk (AKR) has reported the information cited in this GRI content index
    Statement of use
                           for the period 01 January – 31 December 20231 with reference to the GRI Standards.

        GRI 1 used         GRI 1: Foundation 2021




     GRI STANDARD                                          DISCLOSURE                                      LOCATION

 GRI 2: General            2-1 Organizational details                                                       18; 26; 27
 Disclosures 2021
                           2-2 Entities included in the organization’s sustainability reporting                  10

                           2-3 Reporting period, frequency and contact point.                                 10; 15

                           2-4 Restatements of information                                                       11

                           2-5 External assurance                                                                15

                           2-6 Activities, value chain and other business relationships                    18; 23; 27;
                                                                                                               67

                           2-7 Employees                                                                      93; 94

                           2-8 Workers who are not employees                                                     93

                           2-9 Governance structure and composition                                             148

                           2-10 Nomination and selection of the highest governance body                         148

                           2-11 Chair of the highest governance body                                            148

                           2-12 Role of the highest governance body in overseeing the management of
                                                                                                                149
                           impacts.

                           2-13 Delegation of responsibility for managing impacts                            149;150

                           2-14 Role of the highest governance body in sustainability reporting            42; 43; 152

                           2-15 Conflicts of interest                                                           158

                           2-16 Communication of critical concerns                                              153

                           2-17 Collective knowledge of the highest governance body                             150

                           2-18 Evaluation of the performance of the highest governance body.                   151

                           2-19 Remuneration policies                                                           152

                           2-20 Process to determine remuneration                                               152

                           2-21 Annual total compensation ratio.                                                153

                           2-22 Statement on sustainable development strategy                               35;44; 50




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         GRI STANDARD                                               DISCLOSURE                              LOCATION

                                    2-23 Policy commitments                                                  44; 154

                                    2-24 Embedding policy commitments.                                       44; 155

                                    2-25 Processes to remediate negative impacts                               47

                                    2-26 Mechanisms for seeking advice and raising concerns.                153; 157

                                    2-27 Compliance with laws and regulations                                88; 158

                                    2-28 Membership associations                                               34

                                    2-29 Approach to stakeholder engagement                                    48

                                    2-30 Collective bargaining agreements                                      95

      GRI 3: Material Topics        3-1 Process to determine material topics                                   12
      2021
                                    3-2 List of material topics                                             12; 47; 50

                                    3-3 Management of material topics                                       12; 47; 50

      GRI 201: Economic             3-3 Management of material topics                                       12; 47; 50
      Performance 2016
                                    201-1 Direct economic value generated and distributed                      63

                                    201-2 Financial implications and other risks and opportunities due to
                                                                                                             56; 157
                                    climate change

                                    201-3 Defined benefit plan obligations and other retirement plans          67

      GRI 202: Market               3-3 Management of material topics                                       12; 47; 50
      Presence 2016
                                    202-1 Ratios of standard entry level wage by gender compared to local
                                                                                                              114
                                    minimum wage

                                    202-2 Proportion of senior management hired from the local community    114; 133

      GRI 203: Indirect             3-3 Management of material topics                                       12; 47; 50
      Economic Impacts
      2016                          203-1 Infrastructure investments and services supported                  66; 132

                                    203-2 Significant indirect economic impacts                               131

      GRI 204: Procurement          3-3 Management of material topics                                       12; 47; 50
      Practices 2016
                                    204-1 Proportion of spending on local suppliers

      GRI 205: Anti-                3-3 Management of material topics                                       12; 47; 50
      corruption 2016
                                    205-1 Operations assessed for risks related to corruption                 159

                                    205-2 Communication and training about anti-corruption policies and
                                                                                                              159
                                    procedures

                                    205-3 Confirmed incidents of corruption and actions taken                 159




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Keberlanjutan                                                                                            dan Kepatuhan




     GRI STANDARD                                          DISCLOSURE                                            LOCATION

 GRI 302: Energy 2016      3-3 Management of material topics                                                      12; 47; 50

                           302-1 Energy Consumption Within the Organization                                            78

                           302-2 Energy consumption outside of the organization                                        78

                           302-3 Energy Intensity                                                                   78; 79

                           302-4 Reduction of energy consumption                                                       81

 GRI 303: Water and        3-3 Management of material topics                                                      12; 47; 50
 Effluents 2018
                           303-1 Interactions With Water As A Shared Resource                                          84

                           303-2 Management of Water Discharge-Related Impacts                                         84

                           303-3 Water Withdrawal                                                                      83

 GRI 304: Biodiversity     3-3 Management of material topics                                                      12; 47; 50
 2016
                           304-1 Operational Sites Owned, Leased, Managed In, or Adjacent To,
                           Protected Areas and Areas of High Biodiversity Value Outside Protected                      87
                           Areas

 GRI 305: Emissions        3-3 Management of material topics                                                      12; 47; 50
 2016
                           305-1 Direct (Scope1) GHG Emissions                                                      80, 81

                           305-2 Energy indirect (Scope 2) GHG emissions                                            80, 81

                           305-3 Other indirect (Scope 3) GHG emisions                                              80, 81

                           305-4 GHG emissions intensity                                                               81

                           305-5 Reduction of GHG emissions                                                       61, 79, 81

                           305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air
                                                                                                                       83
                           emissions

 GRI 306: Waste 2020       3-3 Management of material topics                                                      12; 47; 50

                           306-1 Waste generation and significant waste-related impacts                                61

                           306-2 Management of significant waste-related impacts                                    61, 85

                           306-3 Waste generated                                                                       86

                           306-4 Waste diverted from disposal                                                          86

                           306-5 Waste directed to disposal                                                            86

 GRI 308: Supplier         3-3 Management of material topics                                                      12; 47; 50
 Environmental
 Assessment 2016           308-1 New suppliers that were screened using environmental criteria                         67




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         GRI STANDARD                                               DISCLOSURE                                  LOCATION

      GRI 401: Employment           3-3 Management of material topics                                           12; 47; 50
      2016
                                    401-1 New employee hires and employee turnover                              108, 109,
                                                                                                                  110

                                    401-2 Benefits provided to full-time employees that are not provided to
                                                                                                                  111
                                    temporary or part-time employees

                                    401-3 Parental leave                                                          112

      GRI 402: Labor/               3-3 Management of material topics                                           12; 47; 50
      Management
      Relations 2016                402-1 Minimum notice periods regarding operational changes
                                                                                                                  113


      GRI 403: Occupational         3-3 Management of material topics                                           12; 47; 50
      Health and Safety
      2018                          403-1 Occupational health and safety management system                         97

                                    403-2 Hazard identification, risk assessment, and incident investigation       98

                                    403-3 Occupational health services                                             99

                                    403-4 Worker participation, consultation, and communication on
                                                                                                                   99
                                    occupational health and safety

                                    403-5 Pelatihan bagi pekerja mengenai keselamatan dan kesehatan kerja |
                                                                                                                  100
                                    Worker training on occupational health and safety

                                    403-6 Peningkatan kualitas kesehatan pekerja | Promotion of worker health     104

                                    403-7 Pencegahan dan Mitigasi Kesehatan dan Keselamatan Kerja
                                    yang Berdampak Langsung dalam Hubungan Bisnis | Prevention and
                                                                                                                  105
                                    mitigation of occupational health and safety impacts directly linked by
                                    business relationships

                                    403-8 Pekerja yang tercakup dalam sistem manajemen
                                    keselamatan dan kesehatan kerja | Workers covered by an occupational          105
                                    health and safety management system

                                    403-9 Kecelakaan kerja | Work-related injuries                                106

                                    403-10 Penyakit akibat kerja | Work-related ill health                        106

      GRI 404: Training and         3-3 Management of material topics                                           12; 47; 50
      Education 2016
                                    404-1 Average hours of training per year per employee                         119

                                    404-2 Programs for upgrading employee skills and transition assistance
                                                                                                                  120
                                    programs

                                    404-3 Percentage of employees receiving regular performance and career
                                                                                                                  121
                                    development reviews

      GRI 405: Diversity and        3-3 Management of material topics                                           12; 47; 50
      Equal Opportunity
      2016                          405-1 Diversity of governance bodies and employees                            114

                                    405-2 Ratio of basic salary and remuneration of women to men                  118




       Laporan Keberlanjutan 2023
Page 167
Ikhtisar              Profil              Our Business         Our                  Our                     Our Conduct:
Kinerja               Perusahaan          Portfolio            People               Communities             Tata Kelola,Etika        167
Keberlanjutan                                                                                               dan Kepatuhan




     GRI STANDARD                                            DISCLOSURE                                             LOCATION

 GRI 406: Non-              3-3 Management of material topics                                                        12; 47; 50
 discrimination 2016
                            406-1 Incidents of discrimination and corrective actions taken                            95, 118

 GRI 409: Forced or         3-3 Management of material topics                                                        12; 47; 50
 Compulsory Labor
 2016                       409-1 Operations and suppliers at significant risk for incidents of forced or
                                                                                                                          94
                            compulsory labor

 GRI 413: Local             3-3 Management of material topics                                                        12; 47; 50
 Communities 2016
                            413-1 Operations with local community engagement, impact assessments,
                                                                                                                         135
                            and development programs

                            413-2 Operations with significant actual and potential negative impacts on               130; 135;
                            local communities                                                                          137

 GRI 415: Public Policy     3-3Management of material topics                                                         12; 47; 50
 2016
                            415-1 Political contributions                                                                159

 GRI 416: Customer          3-3 Management of material topics                                                        12; 47; 50
 Health and Safety
 2016                       416-1 Assessment of the health and safety impacts of product and service
                                                                                                                       68,69
                            categories

                            416-2 Incidents of non-compliance concerning the health and safety
                                                                                                                          68
                            impacts of products and services

 GRI 418: Customer          3-3 Management of material topics                                                        12; 47; 50
 Privacy 2016
                            418-1 Substantiated complaints concerning breaches of customer privacy
                                                                                                                          76
                            and losses of customer data




                                                                                                                     www.akr.co.id
Page 168
Sustainability Report

2023




AKR Tower
JL. Panjang No. 5 Kebon Jeruk
Jakarta Barat 11530, Indonesia

(021) 5311110
www.akr.co.id

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Pages168
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Names mentioned 70 people and organisations named in the text · linked when the evidence is strong

linked org AKR Corporindo Tbk p.4 ×57
linked org Bayu Buana p.20 ×3
linked person Arthakencana Rayatama p.27
linked person Haryanto Adikoesoemo p.35 ×4
linked person Soegiarto Adikoesoemo p.39 ×2
linked person Suresh Vembu p.40 ×2
linked person Termurti Tiban p.40 ×2
linked person Nery Polim p.41 ×2
linked person Jimmy Tandyo p.41 ×2
linked person Mery Sofi p.41 ×2
possible org Bursa Efek Indonesia p.27
possible person Sofyan A. Djalil p.39 ×2
unresolved org PT AKR Corporindo Tbk’s Sustainability p.4
unresolved org Financial Services Authority p.10 ×7
unresolved org PT AKR Transportasi p.10
unresolved org PT AKR Sea p.10
unresolved org PT Jakarta Tank p.10
unresolved org PT Berkah Kawasan p.11
unresolved org PT Berlian Manyar p.11
unresolved org PT Arjuna Utama p.11
unresolved org PT Aneka Petroindo p.11
unresolved org PT Dirgantara p.11
unresolved org PT Aneka Kimia Raya p.19
unresolved org Indonesia Stock Exchange p.19
unresolved org PT Berlian Manyar Sejahtera p.19 ×2
unresolved org PT BMS. Association p.19
unresolved org PT USAHA ERA PRATAMA NUSANTARA p.19
unresolved org PT BERLIAN JASA TERMINAL INDONESIA Logistic p.19
unresolved org PT Berkah Kawasan Manyar Sejahtera p.19 ×2
unresolved org PT Berkah Renewable Energi p.20
unresolved org PT Bayu Buana Gemilang p.20 ×2
unresolved org PT Berkah Buana Energi p.20 ×3
unresolved org PT Aneka Petroindo Raya p.23 ×3
unresolved org PT Asahimas Chemical p.24
unresolved org PT Anugerah Krida Retailindo p.24 ×2
unresolved org PT Dirgantara Petroindo Raya p.24
unresolved org PT AKR Transportasi Indonesia p.25
unresolved org PT AKR Sea Transport. In p.25
unresolved org PT Jakarta Tank Terminal p.25
unresolved org PT Arjuna Utama Kimia p.25
unresolved org PT Arthakencana Rayatama Business Field p.27
unresolved person Sastra Kosasih · Notaris p.27
unresolved org Minister of Justice p.27
unresolved person K.H. Ma’ruf Amin p.32
unresolved org PT Jatim Sarana Utama p.32
unresolved org PT Anugerah Kreasi p.32
unresolved org PT Berkah Bunker Pratama Indonesia p.32
unresolved org PT Andahanesa Abadi p.32 ×2
unresolved org PT Usaha Era Pratama p.32
unresolved org PT Anugerah Kreasi Pratama Indonesia p.32
unresolved org PT Berkah p.32
unresolved org PT PLN (Persero) p.33
unresolved org PT Hailiang Nova Material Indonesia p.33
unresolved org PT Berkah AKR p.33
unresolved org PT Sea p.33
unresolved person Soedijanto · President Director p.40 ×2
unresolved org PT. Berkah Renewable Energi Nusantara p.55
unresolved org Investments Limited p.55
unresolved org Power Investments Limited p.62
unresolved org Ministry of Energy and Mineral Resources p.80
unresolved org Ministry of Environment and Forestry. p.84
unresolved org Minister of Environment and Forestry Regulation p.84
unresolved org PT Indonesia Popular Mandiri. HCREA p.92
unresolved org Ministry of Health p.105
unresolved org PT Jakarta Tank Manager Produksi Adhesive ARUKI Terminal p.116
unresolved org PT ARUKI’s p.116
unresolved org PT. ARUKI p.116
unresolved org PT BMS External Relation p.117
unresolved org Nasional Sertifikasi p.120
unresolved org Ministry of Manpower p.120

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