Dear Shareholders and Stakeholders.Praise God Almighty for His blessings that amidst the slowdown of global economic growth in 2022, the Company still recorded a positive performance, despite it has experienced a decline compared to 2021.Year 2022 was a very challenging year, where the economic slowdown occurred in almost all countries. Global economic challenges are increasing, triggered by several factors such as the geopolitical tension of ongoing Russia-Ukraine war and China’s prolonged lockdowns, which eventually caused an energy crisis, especially oil and gas, and scarcity of food, contributing to very high inflation and forced many countries to adopt tight monetary policies. High oil prices, but low product demand, led to compress the margin of petrochemical companies.The Indonesian economy is also affected by this slowdown in the global economy, but nevertheless was relatively more resilient, in which amid the uncertainties, Indonesia still recorded fairly growth of 5.3%, higher than last year growth of 3.7%. We assess that in the future, the regulator will continue to monitor geopolitical development and take positive actions to mitigate potential negative impacts on the Indonesian economy.Notwithstanding the challenging conditions, the Company maintains its performance to be above the target. The company directors implement the right strategy which enable the Company to record profit of USD 37.9 million in 2022 and EBITDA of USD 51.2 million.
Assessment of the Performance of the DirectorsFacing the challenges in 2022, the directors established strategic policies to ensure that the Company could operate at its best and achieved the targeted business growth. Board of Commissioners consider that these policies are effective to overcome the challenges and directors has succeeded in maintaining the stability of the Company’s operations.The directors remain focus in realising the Company program and plans of various business activities. The directors’ success in implementing the strategical policy was reflected in the Company 2022 financial result which exceeded the target. For such good achievement, the Board of Commissioners appreciated the directors and the management team who had managed the Company successfully in 2022 and hoped the directors be able to maintain the good work and to improve in years to come.The Board of Commissioners had strong interest to the directors in implementing the strategy which was suitable for medium to long term plan that the Company set. The Board of Commissioners optimized the Audit Committee function to supervise the Directors specifically and thoroughly during implementing the strategies and policies.The Board of Commissioners actively provides advice and directions to the directors to ensure the business growth strategy meets the plan concluded and set in the collective meeting between directors and Board of Commissioners. During that meeting the Board of Commissioners gave advice and suggestions in relation to managing the Company. Both Board of Commissioners and directors prioritized and respected each individual authority in carrying out the work harmonious.
View on Business Prospects Compiled by the DirectorsThe Indonesian economy in 2023 is predicted to remain strong and optimistic even though it will slow down slightly due to the impact from global economy slowdown. Improvement of domestic economy is expected to continue, supported by resilient domestic demand and stable purchasing power in the middle of inflation. Board of Commissioners assess that the Company has the potential to seize business growth from these economic conditions, one of which is by optimizing better services to the Company’s customers.The Board of Commissioners have reviewed the directors work plan and business prospect for the year 2023 and consider the targets are realistic and the strategy will strengthen the Company position.Nevertheless, the Board of Commissioners remind the Directors to be vigilant in carrying out the operation and continue to enforce health protocols strictly considering the pandemic is not over yet.View on the Implementation of Corporate GovernanceThe Board of Commissioners considered that the Company has been managed in accordance with consistent implementation of Good Corporate Governance and also applicable laws, which in turn will benefit the Company in gaining trusts from the stakeholders. Therefore, the Board of Commissioners support and encourage Directors to progressively improve the mechanism, structure, and Company functional organs for better Corporate Governance.In carrying out the task, the Board of Commissioners is assisted by the Audit Committee in reviewing the Company financial report, Public Accountant Independency, Internal control sufficiency, and in evaluating total renumeration for the Board of Commissioners and Directors, also in abiding to the prevailing rules and regulations.Having been evaluated and recommended by Audit Committee, the Company consolidated financial report ended on 31 December 2022 had been accepted and approved by the Board of Commissioners.AppreciationFinally, we would like to appreciate the concerned parties for the continuous cooperation, support and trust to the Company all this time. We hope such good cooperation and mutual support will continue and improve.
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Board of Commissioners Report