Pamapersada.com

FOREWORD FROM PRESIDENT DIRECTOR

Frans Kesuma

President Director

Dear Stakeholders,

In praise of God Almighty for all His mercy, grace and protection, Company was able to pass 2021 well in the midst of COVID-19 pandemic which is still ongoing since beginning of 2020. Year 2021 is a year with full challenges due to increasing number of COVID-19 cases caused by delta variant. However, thanks to synergistic cooperation and collaboration between employees, Company was still able to achieve sustainable performance that we should be grateful for.

During this pandemic, Company always makes its best efforts to maintain readiness of its employees to have sustainable operations as per customer expectations. Very strict implementation of health protocols and serious control over vaccination progress that is carried out on a massive scale are keys to successfully controlling spread and increase in COVID-19 cases.

As a contribution to efforts to cope with COVID-19 outbreak, Company has taken several strategic steps to protect employees against COVID-19 at any time, such as periodic PCR and antigen testing, provision of Personal Protective Equipment (“PPE”), disinfectants, medical equipment, drugs, supplemental vitamins, etc. In addition, Company also cooperates with Astra Group and Government to assist community in coping with their livelihood problem due to pandemic through social responsibility programs.

Company's Commitment to Sustainability

Company is fully committed to implementing various sustainability programs and to applying principles of sustainability in developing business. Company is also committed to consistently paying attention to needs of all stakeholders, supporting development of nation and always prospering surrounding community.

Company's commitment to sustainability includes balanced management of economic, social, and environmental interests, in line with Company's goal to create benefits for stakeholders. Company implements Triple-P Roadmap sustainability strategy which consists of Portfolio Roadmap, People Roadmap and Public Contribution Roadmap which reflects Company's sustainability aspirations.

Prepared sustainability report, which will be published for 2021 financial year, is a form of our commitment, in which Stakeholders can know strategies and work programs as well as achievements obtained by Company in accordance with sustainable development goals. In this report, we will provide a comprehensive overview of how Company adapts and finds new ways in its internal business processes, maintains a commitment to customers and supports community in dealing with pandemic.

Environmental, Social and Governance (ESG) Performance in 2021

Energy transition is a necessity and a long-term perspective due to increasingly strong global drive to reduce Greenhouse Gas (“GHG”) emissions. Energy transition is of course also related to environmental, social and governance issues, which are sustainable issues (no point of return issue). Company has planned to cooperate with well-known consultants in responding to this issue by setting science-based targets based on International Standardized Measurement Method and monitoring established ESG roadmap. We realize that Company should not stop at Business as Usual (“BAU”) process. Strategic steps must be taken by all divisions and subsidiaries, especially to control consumption of energy, water, and industrial waste.

Through its subsidiary PT Energia Prima Nusantara, Company has entered a New and Renewable Energy (“NRE”) business. Business development to NRE is an alternative as a counterweight to Company's current business. Collaboration with Astra Group to build solar PV rooftop is first step to increase competence in NRE sector. Technology for solar PV is currently still developing and its direction may change in line with development of energy storage technology. In addition, Company continues to explore opportunities for other NRE sources such as: hydro and wind power plants developed with right partners. Company always anticipates direction of industry so that it is always in position of leading the curve to maximize efficiency and productivity.

Company consistently implements Occupational Health, Safety and Environment (“OHSE”) program including Corona Virus Prevention Program as well as application of technology and digitalization of big data to reduce frequency of incidents.

In field of social responsibility, Company is committed to developing and empowering local community to grow into an independent society. In 2021, 961 social responsibility programs have been carried out for community economic development and improvement, 596 public health programs, 220 environmental management programs, 444 education programs, skills, and courses enhancement and 1,000 social, cultural, religious, and social facilities programs.

For Company, pandemic does not become an obstacle to continue to develop employee competencies. With limited face-to-face interactions, digitization program in training and human capital development has experienced a significant acceleration. PAMA LEADS, I-PEAK, Moving, PERTAMA and other applications have been successfully completed and perfected to have a positive impact on sustainability performance in employee aspect.

Good corporate governance by integrating environmental, social and governance aspects has been implemented and tested with success in providing added value to stakeholders. Around 130 awards have been awarded to Company, both from PT Astra International Tbk, Central Government, Regional Governments, and other organizations as a manifestation of Company’s efforts, including:

Award for Prevention and Control of COVID-19 in Workplace with Platinum Category from Ministry of Manpower.
Indonesia Sustainable Development Goals Award (ISDA) 2021 with categories: Top Leadership for SDGs and Most Committed Corporate for SDGs on Environment Pillar as well as 1 Platinum Award, 4 Gold Award and 1 Silver Award related to contributions to achievement of SDGs.
ESDM Soebroto Award 2021: 3rd Winner in Energy Efficiency Category.
11 Pratama and Utama Awards in Achievement of Good Mineral and Coal Mining Engineering Practices from Ministry of Energy and Mineral Resources.
Mitra Bakti Husada Award “Mining Company That Has Implemented Productive Healthy Women Worker Movement (GP2SP)” from Ministry of Health.
Astra Corporate Affairs Award 2021: two awards in Astra Green Company category, one award in Astra Friendly Company category and one award in Astra Security Management System category.

Appreciation and Closing

We always try to give best for future generations. We also believe that Company's efforts to improve and balance sustainable development aspects, namely: People, Planet, Prosperity, Peace, and Partnership (“5Ps”) will be able to maintain sustainability of our business and will assist Company in achieving its vision and mission.

On behalf of Board of Directors, I would like to express my gratitude to all stakeholders for support and contribution given to our sustainability efforts and initiatives.