Dear Shareholders,
 
Through prudent strategy, the Company was able to accelerate its growth performance in 2024. The optimization and efficiency measures implemented across all business areas were key to the Company’s long-term success. Such an outstanding result was due to the Board of Directors’ expertise in running the Company with strategic management under our close supervision, as well as the hard work of all employees and subsidiaries.
 
Indonesia held its democratic celebrations again in 2024, with presidential and vice-presidential elections. This turn of events resulted in global business policy shifts that needed to be anticipated.
 
In 2024, the global economy remained uncertain and faced numerous challenges, including geoeconomic fragmentation, persistent geopolitical tensions, supply chain disruptions, and volatile commodity prices. However, we recognize that Indonesia achieved a positive economic growth rate of 5.03%.
 
Indonesia’s coal production experienced positive growth throughout the year, reaching 836 million tons, up from 770.91 million metric tons in 2023, far exceeding the government’s target of 710 million metric tons. Overall, coal demand was expected to rise significantly in 2024, both domestically and internationally. One factor contributing to this increase is the high demand for domestic electricity and smelter sectors.
 
ASSESSMENT OF PERFORMANCE OF THE BOARD OF DIRECTORS
Based on our oversight and assessment throughout 2024, the Board of Directors showed strong and synergistic leadership in managing the Company, enabling it to remain resilient and deliver strong financial performance amid business challenges and pressures. Supported by individuals with expertise in their respective fields, the Board of Directors focused on leading the Company toward its goals.
 
Our assessments indicate that the Board of Directors remained focused on strategy execution in terms of performance targets, diversification, business expansion, and business development initiatives undertaken to support the Company’s performance growth. We occasionally reminded the Board to exercise prudence in decision-making when risks arose that could have impact on the Company’s future sustainability.
 
Throughout 2024, the Company continued to drive digital innovation in all aspects of the business while developing excellent and competitive human capital. These efforts were crucial for strengthening the Company’s position within the industry. We appreciate the Board’s unwavering commitment to implementing independent and accountable business practices in accordance with shareholder directions in order to provide maximum value to stakeholders.
 
OVERSIGHT OF THE FORMULATION AND EXECUTION OF THE COMPANY’S STRATEGY
Throughout 2024, the Board of Commissioners exercised oversight of the Company’s strategy execution and overall performance. To enhance the quality of our oversight, we applied comprehensive evaluation and corrective measures. Based on our assessment, the Company has made optimal efforts to maintain business continuity amid a wave of formidable challenges. Current issues such as rising fuel prices, a vulnerable industry landscape, and weakening coal prices prompted the Company to accurately determine and implement effective strategic directions.
 
With well-formulated strategies, the Company succeeded in maintaining solid performance and ensuring compliance with prevailing regulations, including fulfilling its obligations under the Domestic Market Obligation (DMO) requirements. Operationally, the Company recorded a decline in coal production and sales volume. However, this decline had no negative impact on the Company’s financial performance due to successful cost-cutting measures implemented across the board.
 
From a financial perspective, the Company experienced a 19.06% decrease in revenue. Nonetheless, consistent efficiency and performance optimization efforts led to a significant increase in profit for the year, which rose by 235.06%, as well as a 286.33% increase in comprehensive income for the year. PT Pemeringkat Efek Indonesia (Pefindo) also assigned the Company a credit rating of idA+ with a stable outlook. This achievement reflects the Company’s resilience and stability in navigating a challenging business environment.
 
VIEWS ON BUSINESS PROSPECTS
We are optimistic that the Company has plenty of room and opportunities for sustained growth. In our view, coal will continue to serve as a primary energy source in the medium and long term, due to its relatively abundant sources and lower cost. While we are seeing a growing effort to transition toward more environmentally friendly energy sources, the demand for coal is projected to remain high, particularly in the power generation industry. In addition, several countries continue to rely on coal in other industrial processes, such as steel manufacturing.
 
Diversification, expansion, and transformation are key strategies for the Company’s sustainable growth. They support the Company’s efforts to pursue downstream projects in the future. We will continue to provide the Board of Directors with relevant input and directives so that the Board can seize potential business opportunities with caution and measurable results, allowing the Company to improve its business stability in any given situation.
 
In the mining sector, the Company’s subsidiaries, KPC and Arutmin, are well-positioned to achieve better growth, supported by strong infrastructure and capable resources. These expectations must, of course, be accompanied by concrete efforts to carry out operations in an effective, productive, and responsible manner.
 
Furthermore, we are also optimistic that PT Bumi Resources Minerals Tbk. will record solid growth in line with the rising world gold price.
 
VIEWS ON THE IMPLEMENTATION OF GOVERNANCE COMPANY
As the Board of Commissioners, we ensure that the Company operates professionally and responsibly under the direction of the Board of Directors. To support this, the Company has established governance bodies that work to foster a positive business environment and improve performance. Furthermore, we continuously monitor the Company’s compliance with applicable regulations and policies, as well as the implementation of sound governance practices that do not harm our stakeholders in any way.
 
We work alongside the Board of Directors to establish the Company’s short-, medium-, and long-term direction and strategies while taking a balanced approach to environmental, social, and governance (ESG) issues. The Company’s strategic decisions must respect stakeholder rights and support the achievement of its objectives.
 
For the year 2024, we were glad to report that no legal cases were filed this year against the Company, the Board of Commissioners, the Board of Directors, or other members of management, either at the holding level or within subsidiaries. Furthermore, we commend the Company’s ability to uphold its integrity, as evidenced by the absence of violations that could have given it a bad reputation, such as corruption, kickbacks, gratuities, bribery, and other misconduct. The Board of Commissioners also reaffirms its commitment to avoiding conflicts of interest that could result in reputational harm to the Company.
 
CHANGES IN THE COMPOSITION OF THE BOARD OF COMMISSIONERS
Based on the resolution of the AGMS dated June 28, 2024, the Company appointed Mr. Ben Niu as a Commissioner, with his term effective until November 26, 2024.
 
CLOSING
Its proven and long-standing track record has helped the Company achieve consistent and even stronger growth over the years. With shareholder support and trust, employee contributions, and strong leadership from the Board of Directors, the Company has been able to navigate various challenges and move forward with the appropriate strategies and strategy execution. We remain hopeful and committed to ensuring that the Company continues to deliver positive growth in the coming years and has a meaningful impact on all stakeholders at the national and global levels.
 
On Behalf of the Board of Commissioners,
 
Sharif Cicip Sutardjo
President Commissioner and Independent Commissioner