2

THEME
EXPLANATION

Raising the Bar

Progressing Further
PT AKR Corporindo Tbk has built a solid track record over In practice, AKR also strives to conduct its business
six decades serving a wide range of customers in Indonesia. responsibly by prioritizing Environment, Social, and
Beginning with the establishment of AKR, focusing on Governance (ESG) principles, to create a positive impact
logistics and supply chain services for petroleum and basic for all stakeholders.
chemicals, over time this has developed into a logistics
network through retail, aviation petroleum, and more. These steps have led AKR to consistent growth, evidenced
by net profit in 2023 reaching Rp2,780 billion, a 16%
Supported by competitive advantage, AKR has progressed increase. Growth over the past five years has been driven
with JIIPE Special Economic Zone in Gresik, East Java, by a strong business model, with AKR at the forefront of
playing a crucial role in an integrated supply chain all aspects of business with strong financial management,
ecosystem offering multimodal transportation, deep-sea adequate infrastructure, comprehensive information
ports, and interconnectivity and competitive utilities such technology, and reliable human resources. In new level of
as gas and other renewable energy sources. This aligns growth optimistic about driving business progress across
with AKR’s strategy of integrating competitive advantages various industries, potentially becoming a trendsetter for
in logistics infrastructure and sustainability initiatives. In Indonesia’s future economic growth.
addition to supporting the national industry, JIIPE can also
attract direct foreign investment.

AKR’s business transformation demonstrates a clear

vision, strong leadership, sustainable resilience, and
adaptability in business dynamics, capturing momentum
and business opportunities that can drive new growth
and foresee downstream trends in Indonesia, boosting
future economic growth. Besides the utilities and world-
class facilities provided by JIIPE, JIIPE has potential further
benefits to AKR distribution business.

Summary Report 2023

 Summary
Report 3

TABLE
OF CONTENT

Theme Explanation 2 Corporate Vision and Mission 28

Table of Contents 3 Key Company Values 29

AKR : Achieving New Levels of Growth 4 Company Record 20

Strengthening Foundations to Drive Financial Summary 32

5
Sustainable Growth
Stock Summary 36
Outstanding Achievements in 2023 8
Board of Commissioners’ Report 38
Improving Contributions, Growing
10
Together Board of Directors’ Report 44

2023 Strategy 11 Operational Overview 52

Awards and Certifications 12 Human Resources 58

Importants Events 14 Information Technology 60

General Information 16 Corporate Governance Achievement 62

A Brief History of the Company 17 Commitment to Corporate Governance

63
Implementation
Organizational Structure 18
Assessment of Corporate Governance
65
Corporate Group Structure 19 Implementation

Operating Regions and List of Office Sustainability Strategy 66

20
Address
Sustainability Performance Overview
73
Business Sectors 22 2023

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4

AKR : ACHIEVING NEW LEVELS

OF GROWTH
In the midst of the current business dynamics, AKR has succeeded to transform uncertainty into opportunities and
challenges into potential to provide sustainable added value. AKR has maintained profitability and is positioned well to
capture future growth potentials.

JIIPE Achieves Best Performance Beyond Target

By the end of 2023, AKR had 24 tenants in JIIPE. Growth is also evident from the success in achieving land sales targets,
amounting to 91 hectares compared to the target of 75 hectares.

24 91 447 22%
tenants hectares hectares Contribution JIIPE to AKR
Consolidated Gross Profit
Total Tenants Land sales in 2023 Cumulative Land
Sales and Land Lease at
JIIPE

JIIPE’s Best Achievement Driven by:

Readiness and Construction of Largest Single Obtaining Special Supported by

Development Line Copper Smelter owned by Economic Zone Indonesia’s
of land, ports, PT Freeport Indonesia (Initiated status since 2021 Downstream
utilities, and in 2019 and operational in 2024) and an operational Policy
infrastructure certificate since
2022

Solar rooftop panels installed Water and waste treatment facilities

at the JIIPE utility center open (WTP & WWTP) to minimize water
opportunities for tenant utilization. extraction

JIIPE Drives Clean and

Low-Carbon Energy

• Providing cleaner and renewable

energy
Industrial area with no water runoff Gas-powered electricity generators
will be used as the primary power
source.

Summary Report 2023

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Report 5

STRENGTHENING FOUNDATIONS
TO DRIVE SUSTAINABLE GROWTH
AKR is a leading supply chain and logistics company as well as the one of the largest developer of integrated industrial
estates and ports in Indonesia, supplying basic chemicals, energy, and logistics to the Indonesian industry through
essential infrastructure investments spread across the archipelago.

Proven business model

Cost efficiency
commission based

Discipline working capital Investment in new growth areas

management Strengths such as JIIPE

AKR enhances value for stakeholders by meeting the Despite various current and future business challenges,
needs of customers from various industries, acting as an AKR has proven itself resilient, with a strong business model
extension of suppliers, conducting business in accordance and adequate infrastructure. Currently, achievements in
with regulations, and providing profits and benefits to logistics include 11 seaports, 6 river ports, and storage tanks
shareholders and employees. at 20 locations across the Indonesian archipelago.

Location of Tank Terminals

Hub/Sea Ports
Sea Ports
River Ports

Sumatera Jawa-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 • Tanjung Selor
• Surabaya Nilam Utara • Buntok Muara Teweh
• Terminal Nilam Utara (TNU)
• Bandung
• Bali
• Jakarta Tank Terminal (JTT)

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6

To drive efficiency and enhance customer experience, AKR Furthermore, AKR has taken a more progressive step
has an IT platform to monitor the movement, inventory through industrial area and the Java Integrated Industrial
position, and condition of products from upstream to Ports Estate (JIIPE). With Special Economic Zone status,
downstream, from the beginning of the transaction to the AKR is promoting recurring income potential by providing
hands of consumers. utility services, electricity, water, gas, and port operations
that can drive sustainable growth for AKR.
AKR’s main businesses are trading and distributing
petroleum and basic chemicals, including caustic soda,
sodium sulfate, PVC resin, and soda ash. Currently,
the Company is expanding into retail petroleum with
international oil majors and establishing gas stations
to deliver high-quality gasoline while supporting the
Indonesian government’s efforts to deliver subsidized
petroleum to customers.

Summary Report 2023

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Report 7

17
Sea and River Ports
4
Main Hub Terminals at:
819,400
KL Storage Tank Terminal
Jakarta Tank Terminal (with
VOPAK), Stagen, South
Kalimantan, Surabaya &
Medan

14 50,000 229
Ships/SPOB M Warehouse
2
Trucks

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8

OUTSTANDING ACHIEVEMENTS
IN 2023

Total Sales and Revenue

Rp42,087 billion

Revenue
Trading and Distribution

Rp31,869 billion Rp6,344 billion

Petroleum Basic Chemicals

Manufacturing Industrial Area

Rp558 billion Rp2,323 billion

Logistics Services

Rp993 billion
Summary Report 2023
 Summary
Report 9

Total Assets EBITDA

Rp30,255 billion Rp4,048 billion

11% yoy 14% yoy

Total Equity ROE

Rp14,043 billion 24.7%

Net Profit Net Gearing

Rp2,780 billion
16% yoy
-0.16x
Arus Kas Bersih

Governance Achievements

Investor confidence in AKRA’s shares is

Increased number of companies investing
reflected in the 2023 market capitalization
the JIIPE Gresik Special Economic Zone.
increase and a 5.35% increase in stock price.

AKRA’s stock trading activities have

AKR has maintained its position in major
proceeded smoothly, and the Company has
ESG indices of the Indonesia Stock
not received any warnings from regulators
Exchange.
and exchanges.

Increased employee awareness of the

Company’s culture, human rights, and Opportunities for new business growth for
workplace and environmental safety AKR.
protection.

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10

IMPROVING CONTRIBUTION,
GROWING TOGETHER
Commitment to sustainable development has become As a manifestation of its commitment and support for
part of the business DNA, based on dedication to inclusive Sustainable Development, especially in Social, Economic,
progress, improving the well-being of every individual in and Governance (Environmental, Social, and Governance/
society, and increasing the profitability of our business. ESG), AKR has established an ESG Committee to oversee
AKR actively supports the introduction of environmentally and evaluate the implementation of ESG strategies.
friendly and quality alternative energy sources,
contributing to equal access to energy, and reducing
economic inequality.

ESG Performance Achievements

• A total of 142,065.77 GJ of • The 2023 CSR Program • Socialization and signing of

renewable energy used in reached Rp24.19 billion Integrity Pacts by 1,654 AKR
AKR operations. • Of the total middle-up employees
• Renewable energy mix management positions, 24% • Zero legal violations in 2023
reached 27% of AKR’s total are held by women • Release of health, safety,
internal energy consumption. • Fleet truck mileage without and environmental policies,

E S G
• AKR’s emission intensity accidents was recorded at Human Rights (HR) policies,
is 0.02 tons of CO2e per Rp 34,31 million kilometers. and sustainable procurement
million of Gross Profit. • Zero fatality policies
• Total environmental cost for
AKR reached over Rp4 billion.

ESG Sustainalytics Main Stock Indices and ESG

26.0
Index LQ 45
IDX 30
Investor 33
Bisnis 27
Medium Risk
ESG Quality 45 IDX KEHATI
ESG Sector Leaders IDX KEHATI
IDX LQ45 Low Carbon Leaders

ESG S&P Global

Increased to 34, maintained above the industry

average

Transparency of Corporate Emission Calculation 2023

Platinum Category from BGK Foundation

Summary Report 2023

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Report 11

2023
STRATEGY

Prepare for the expansion of infrastructure

networks and logistics fleets, especially to serve
potential consumers in Eastern Indonesia

Expand the retail network for Euro4 standard

petroleum

Increase the number of customers/tenants by

leveraging their potential to build an industrial
ecosystem in JIIPE

Support the B35 biodiesel program and take

further steps to develop more environmentally
friendly energy by partnering with world-class
strategic partners and also forming subsidiaries
to develop renewable energy businesses

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12

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
Rp1T - 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 Rp1T - Rp5T), by
4. 2nd Best Indonesia Finance 2023, Category Public Economic Review
Company – Wholesale (Asset Rp1T – 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

Summary Report 2023

 Summary
Report 13

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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14

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
In Annual General Meeting (RUPS), approval was granted
Cooperation
for the dividend payment of Rp1.48 trillion, equivalent to
Rp75 per share. This amount represents 61.6% of the 2022
During his visit, Mr. lr. Prof. Dr. (HC) K.H. Ma’ruf Amin
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).

Summary Report 2023

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Report 15

May 10, 2023 June 20, 2023

JIIPE Strategic Collaboration in Electricity Indonesian President Inaugurates
Provision Construction of Largest Copper Foil
Factory, Hailiang
PT PLN (Persero) supported the provision of electricity at
JIIPE up to 240 MVA, facilitating reliable, high-quality, and President Joko Widodo conducted the ground-breaking
competitively priced electricity for industrial customers ceremony for the largest copper foil factory in Southeast
throughout Indonesia. Asia, PT Hailiang Nova Material Indonesia, located in JIIPE’s
integrated industrial area.

October 20, 2023 December 6, 2023 January 5, 2024

Purchase of AKRA 103 fleet Joint Development Establishment of PT
Agreement with BP GAS & Berkah Renewable Energy
AKR has increased its capital by POWER Nusantara (BREN)
Rp80 billion in its subsidiary, PT Sea
Transport (AST), to add new vessel PT Berkah Renewable Energi
AKR has signed a Joint Development
AKRA 103 to the fleet. Nusantara (BREN), is now a subsidiary
Agreement with BP GAS & POWER
of the Company engaged in the
INVESTMENTS LIMITED (bp) to
operation of power plants and other
develop an LNG project involving a
activities related to energy provision,
regasification terminal in the JIIPE
located in Gresik, East Java.
Industrial Estate in Gresik.

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16

GENERAL
INFORMATION

2,813
Company Name Number of Employees in 2023

PT AKR Corporindo Tbk

people
Date of Establishment Legal Status

November 28, 1977 Public Limited Company Share Ownership Composition

(Tbk)

Stock Listing on Stock Exchange

60.17%
PT Arthakencana Rayatama
Business Field
Indonesia Stock Exchange

38.16%
Trading and Distribution on October 3, 1994.

Logistics Services Bond Code and Rating Public

Shelf Registered Bonds I AKR
Manufacturing

1.68%
Corporindo, 1st Trance Year 2017,
C Series
Industrial Estate
Treasury Stock

Authorized Capital

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

Paid-up Capital

Rp401,469,492,000
with a composition of 20,073,474,600 shares
with a nominal value of Rp20,

Legal Basis of Establishment

Deed Number 46 dated November 28, 1977, executed before Notary
Sastra Kosasih in Surabaya, confirmed 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. It was announced in the State Gazette
of the Republic of Indonesia Number 101 dated December 19, 1978,
Supplement Number 741/1978.

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

+62 21 5311110
+62 21 5311388, 5311185
[email protected]

Summary Report 2023

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Report 17

A BRIEF HISTORY
OF THE COMPANY

PT AKR Corporindo Tbk (hereinafter referred to as "AKR"

or the "Company") was established in Surabaya based
on Deed Number 46 dated November 28, 1977, executed
before Notary Sastra Kosasih under the name PT Aneka
Kimia Raya. In its early years, the Company's main focus was
on trading basic chemical materials. Over time, especially
in the 1970s, AKR's ownership of a large number of storage
tanks for basic chemical materials and warehouses at
various major ports in Indonesia made it the largest
distributor of chemical materials in the country.

In the 1980s, AKR relocated its headquarters to Jakarta,

and in the following decade, the Company became a
publicly listed company on the Indonesia Stock Exchange.
The Initial Public Offering (IPO) of the Company's shares
was held on October 3, 1994, with the stock code AKRA.

www.akr.co.id
18

ORGANIZATIONAL
STRUCTURE

Board of Commissioners
Soegiarto Adikoesoemo
Fauzi Ichsan
Sofyan Djalil

Audit Committee Nomination & Remuneration Committee

Fauzi Ichsan Soegiarto Adikoesoemo
Sahat Pardede Fauzi Ichsan
Djisman Simandjuntak Felix Abednego

Quality Assurance &

President Director
Risk Management
Haryanto Adikoesoemo
Antonius Setiawan

Director of
Director of External
Corporate
Relations, Industrial
Director of Regional Director of Finance & Secretary, Business
CEO Deputy CEO Estate & Port
Sales & Operation Accounting Development &
Facilities
Jimmy Tandyo Mery Sofi Joint Ventures
Nery Polim Ter Murti Tiban
Bambang Relationship
Soetiono S.
Suresh Vembu

Head of Human Head of Petroleum Head of WEST Deputy Finance & Head of Network & Corporate Secretary
Resources Division Region Tax Operations Officer
Felix Abednego Johny W. Sutanto Nery Polim Melyati Yuwono Joseph Pangilinan Fiana M. Awalina

Head of Chemical & Head/Deputy Head Head of Deputy Netwok & Head of Investor
Logistics Division of Branch: Procurement Operations I Relation
Head of Natural Gas
& Renewable Energy Ongkowijono • Jakarta Weldy Natalina Yuwono Ignatius T. Prayoga
• Medan Ongkowijoyo
Elijas Pudjianto • Palembang • Tank Terminal &
• Lampung Head of Business
Warehouse
• Bandung Process &
Head of Information • Safety, Health,
• Semarang Compliance Joint Ventures
Technology Environment
Head of Legal • Pontianak Handy Yustisio
Teddy Yusup PT Jakarta Tank
Harryati Utami Terminal (JTT)
Deputy Network &
Head of Treasury & Operations II PT Dirgantara
Head of Licence & Head of EAST Insurance Petroindo Raya
Erpiny
Permit Region Hengky • Land PT Aneka Petroindo
Antonius Reza Gunawan Kartawinata Transportation Raya
Brahmanta & Distribution
Planning PT Anugerah
Head/Deputy Head Head of Receivable Lubrindo Raya
Head of Litigation of Branch: Management • Operational
Toni Butar Butar • Surabaya Improvement PT Berkah Kawasan
Oey Imelda Widjaja Manyar Sejahtera
• Kalimantan
Timur PT Anugerah Kimia
• Kalimantan Indonesia
Selatan &
Tengah PT Berkah Buana
• Bali Energi
• Sulawesi
• Stagen

Summary Report 2023

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Report 19

CORPORATE GROUP
STRUCTURE

Integrated
Trading & Manufacturing &
Logistic Services Industrial & Port
Distribution Others
Estate

PT Berkah
PT AKR PT Anugerah PT Jakarta PT Usaha
PT Berkah Renewable PT Arjuna
Niaga Krida Tank Era Pratama
Buana Energi Energi Utama Kimia
Indonesia Retailindo Terminal Nusantara
65.00% Nusantara 99.96%
99.99% 99.99% 99.00% 51.00% 99.99%

PT Berkah
PT Anugerah PT Aneka PT Energi PT Berlian
PT AKR Sea Kawasan PT Anugrah
Kimia Petroindo Manyar Manyar
Transport Manyar Karya Raya
Indonesia Raya Sejahtera Sejahtera
99.99% Sejahtera 96.75%
51.00% 50.10% 45.00% 60.00% 40.00%

PT
PT AKR
Dirgantara
Transportasi
Petroindo
Indonesia
Raya
50.10% 99.99%

PT Anugerah PT Usaha
Lubrindo Era Pratama
Raya Nusantara
80.00% 99.99%

Anugerah PT
Lubrindo Andahanesa
Raya Abadi
80.00% 99.99%

Lubrindo
Shipping PT Terminal
Services Pte Nilam Utara
Ltd 60.00%
100.00%

PT Anugerah
PT Berkah
Kreasi
Bunker
Pratama
Service
Idonesia
99.99% 99.99%

Our Joint Venture

PT Berkah Kawasan PT Anugerah Kimia

PT Aneka Petro Indo Raya PT Jakarta Tank Terminal
Manyar Sejahtera Indonesia

PT Dirgantara Petroindo PT Berlian Manyar

Raya Sejahtera

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20

OPERATIONAL REGIONS
AND LIST OF OFFICE ADDRESSES
Head Office

PT AKR Corporindo Tbk

AKR Tower Lt 26
Jl. Panjang No.5, Kebon Jeruk
Jakarta Barat 11530, Indonesia
Telp : +62 21 531 1110
Fax : +62 21 531 1388, 531 1185

Branch Office/Representation

West Region East Region

BANDUNG BALI
Kawasan Industri Cimareme V Jl. Ikan Tuna 1, Pelabuhan Benoa
No. 5 Ngamprah, Denpasar Selatan, Bali, Indonesia
Bandung Barat 40553, Indonesia Telp : +62 361 720743
Telp : +62 22 686 5000 Fax : +62 361 720563
Fax : +62 22 686 4649
BALIKPAPAN
CIWANDAN Gedung BRI Lt.5,
Jl. Pelindo II Ciwandan Jl. Jend. Sudirman No.37,
Cilegon Banten Balikpapan,Kalimantan Timur 76112, Indonesia
Telp : +62 254 602088/87/131 Telp : +62 542 736771
Fax : +62 251 602130, 602132
BANJARMASIN
LAMPUNG Pelabuhan Martapura Baru Trisakti,
Jl. Sumatera, Komplek Pelindo II Kawasan Pelindo Banjarmasin,
Panjang Bandar Lampung 35241, Indonesia Kalimantan Selatan 70119, Indonesia
Telp : +62 721 343100, 341650 Telp : +62 511 442 3279
Fax : +62 721 343333 Fax : +62 511 442 3289

MEDAN MANADO dan Sekitarnya

Jl. Road 3 Gabion (Samping Semen Padang) Grand Kawanua Novotel Manado
Medan Belawan, 20414 Lt III, Jl. AA Maramis - Kayuwatu /
Telp : +62 61-6945001 Kairagi II Manado 95254, Sulawesi Utara
Telp : +62 431 818 911-12
PALEMBANG
Jl. Belabak 36A/ 3 Ilir SURABAYA
Palembang 30116, Indonesia Jl. Sumatera No. 51-53
Telp : +62 711 717636, 717644, 717645 Surabaya 60281, Indonesia
Fax : +62 711 710072 Telp : +62 31 503 4871/72
Fax : +62 31 328 4726

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Terminal/Transportation/Warehouse

TANJUNG PRIOK STAGEN

Jl. Aceh, Pelabuhan Tanjung Priok, Jl. Raya Stagen
Pos E Samping PT. Bimoli, Komplek PELINDO III - Stagen
Jakarta Utara, Indonesia Pulau Laut Utara - Kab. Kota Baru
Telp : +62 21 4372318 Kalimantan Selatan - 72151, Indonesia
Fax : +62 21 43930017 Telp : +62 518 607 2372

MARUNDA 1 SURABAYA
Jl. Ambon Blok A1 No. 5,6,7 Jl. Margomulyo 44
KBN Marunda Jakarta Utara, Indonesia Pergudangan Suri Mulia Kav. A6-8,
Telp : +62 21 440 6569, 440 6570 Surabaya, Indonesia
Fax : +62 21 440 6571 Telp : +62 31 749 1041
Fax : +62 31 749 1045, 748 2241
MARUNDA 2
Jl. Semarang Blok A6 No. 2 BITUNG
KBN Marunda, Jakarta Utara, Indonesia Jl. Wolter Monginsidi KM 4
Telp : +62 21 441 5979, 441 5977 Kelurahan Paceda,
Kecamatan Bitung Tengah, Kota Bitung,
NILAM TIMUR Sulawesi Utara, Indonesia
Terminal AKR I Telp : +62 438 2230734, 2230733
Jl. Nilam Timur, No. 21,
Surabaya, Indonesia SEMARANG
Telp : +62 31 328 2965, 329 1979 Jl. Coaster No. 16 Pelabuhan, Tanjung Mas
Fax : +62 31 329 1977 Semarang 50174, Indonesia
Telp : +62 24 354 6066
NILAM UTARA Fax : +62 24 351 4010
Terminal AKR II
Jl. Nilam Utara, No.2, MEDAN
Surabaya, Indonesia Jl. Anggada 1, Pelabuhan Ujung
Telp : +62 31 329 5008, 3292 252 Baru Belawan, Medan 20411,
Fax : +62 31 329 2252 Indonesia
Telp : +62 61 694 4091
PALARAN Fax : +62 61 649 4268
Jl. Trikora RT 25, Jembatan Kuning,
Kelurahan Handil Bakti,
Palaran, Samarinda,
Kalimantan Timur, Indonesia
Telp : +62 541 6522 204, 6522 544

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22

BUSINESS
SECTORS

Business Activities Based on the Articles of Association

In accordance with Article 3 of the Company's Articles of Association, as approved in the Extraordinary General Meeting of
Shareholders on April 28, 2022, the purpose and objectives of the Company are focused on the following areas:

1. Industry; 4. Provision of electricity, gas, steam, hot water, and cold

2. Trade; air;
3. Transportation and warehousing (rental and operational 5. Professional, scientific, and technical activities (services);
leasing without an option to buy, manpower, travel 6. Construction.
agencies, and other supporting business activities);

Business Activities

Main Business Activity • Retail trade of Petroleum (BBM), Gas (BBG), and
1. Industry: Liquefied Petroleum Gas (LPG) in Basic, Maritime,
• Industrial products from oil refineries include the and Air Transportation Facilities includes retail
processing of asphalt/tar, bitumen, and wax (usable of BBM, BBG, LPG, or other types of petroleums
for road coatings, roofing, wood, paper, and so on), as at petroleuming facilities for land, sea, and air
well as petroleum coke. This category encompasses transportation, such as gas stations and including
products for the petrochemical industry with various petroleum for speedboats and generators. This
products, such as white spirit, vaseline, paraffin activity involves the sale of lubricants, cooling
wax, petroleum jelly, petroleum briquettes, and the products, cleaning materials, and other goods
blending of biopetroleums, such as alcohol with related to the needs of vehicles.
petroleum (for example, gasohol); and,
• The petroleum petroleum industry solven refining 3. Transportation and Warehousing (Leasing and
and processing crude oil includes activities in Operational Leasing Activities without Option
purification and refining that results in Avigas, Avtur, Rights, Manpower, Travel Agents, and Other
Gasoline, Kerosene, Solar Oil, Diesel Oil, Petroleum Business Support Activities):
Oil or Petrol, and Solvent/Diluent. This category also • Pipeline transportation, including the transportation
includes the production of LPG (liquefied petroleum of oil and natural gas (crude oil, oil petroleums,
gas) from the refining of crude oil. processed products, and natural gas), liquids, water,
mud, and other commodities from the manufacturer
2. Trade: to the consumer through pipelines based on fees or
• Wholesale trade of solid, liquid, and gas petroleums, contracts, including pump station operations;
as well as related products, includes crude oil, raw oil, • Motorized transportation for general goods, covering
diesel petroleum, gasoline, oil, kerosene, premium, motorized vehicles capable of carrying more than
solar oil, kerosene, coal, charcoal, coal residues, one type of cargo, including trucks, pickups, open-
wood petroleum, naphtha, biopetroleums, gas box trucks, and closed-box trucks;
petroleums such as LPG, butane gas, propane, polish • Motorized transportation for specific goods,
oil, lubricating oil, and refined petroleum products; specifically designed to carry a particular type of
• Wholesale trade of basic chemical materials and cargo, such as oil, crude oil, processed products, LPG,
goods encompasses the basic chemical materials LNG, CNG, hazardous goods, hazardous waste, heavy
or industrial chemicals, such as printer ink, essential equipment transportation, container transportation,
oils, industrial gases, chemical adhesives, dyes, live plant transportation, live animal transportation,
synthetic resins, methanol, paraffin, flavorings and and motor vehicle transportation;
fragrances, soda, industrial salts, acids, sulfur, and • Domestic sea transportation to carry specific types of
similar products; and, cargo such as hazardous goods, hazardous waste, oil,
crude oil, processed products, LPG, LNG, CNG, fish,

Summary Report 2023

 Summary
Report 23

and similar items; emitters), shipping, mooring activities.

• Warehousing and storage, including the temporary • River and lake port activities, encompassing
storage of goods before they are shipped to their various activities related to water transportation
final destination for commercial purposes; for passengers, animals, or goods. This includes
• Oil and natural gas storage, including storage operating terminal facilities such as ports and
activities (reception, collection, containment, and docks, navigation activities, cargo inspection, and/or
release of crude oil, oil petroleums, gas petroleums, container inspection using ionizing radiation sources
and/or processed products) at locations above and/ (radioactive substances and ionizing radiation
or below ground, and/or on water for commercial emitters), shipping, mooring activities, as well as
purposes, including storage in free trade zones; piloting, and delaying services.
• Hazardous Material Storage Activities, specific storage
conditions based on the nature/characteristics of 2. Construction
hazardous and toxic materials; • Civil engineering construction of bridges and
• Bonded warehousing or bonded area, covering overpasses, including the construction, maintenance,
business activities within a customs area that and/or reconstruction of bridge structures (including
receives special treatment, such as being outside the rail bridges), elevated roads, underpasses, and
customs area and managed by a corporate entity flyovers. Activities within this classification involve
engaged in warehousing activities, such as the the construction, improvement, maintenance of
Batam Industrial Zone; and supporting elements, and accessories for bridges
• Leasing and operational leasing for cars, buses, and elevated roads, such as retaining walls, road
trucks, and similar vehicles, including all types of drainage, road markings, and signs.
ground transportation equipment without operators. • Prefabricated Civil Building Construction Services,
including the installation of factory-produced
4. Professional, Scientific, and Technical Activities materials such as precast concrete, steel, plastic,
(Services) rubber, and other factory-produced materials. This
Other management consulting activities encompasses process is carried out using fabrication, erection, and/
providing advice, guidance, and operational support or assembly methods for civil buildings.
related to various aspects of organization and • Non-fishery port building construction, covering the
management. This includes areas such as strategic and construction, maintenance, and/or reconstruction
organizational planning; financial decision-making; of port structures (jetty), trestles, port facilities, and
marketing goals and policies; human resources similar structures for non-fishery ports. This includes
planning, practices, and policies; and scheduling and waterways or canals, ports, river track facilities, docks,
control of production planning. locks (Panama Canal Lock, Hoover Dam), and others.
• Civil construction for oil and natural gas,
The provision of these business services may involve encompassing business activities related to the
assistance in advising, guiding, and operationally construction, maintenance, and/or reconstruction
managing various functions, management consulting of civil structures in the context of upstream and
by agronomists and agricultural economists in the field downstream oil and gas operations.
of agriculture and similar areas, design of accounting
methods and procedures, cost accounting programs, 3. Electricity, Gas, Steam, Hot Water, and Cold Air
budget expenditure control procedures, advice and Supply
assistance for business and community services in • Electricity generation from various energy sources,
planning, organizing, efficiency, and supervision, including fossil energy sources such as coal, gas, oil,
management information, and others. This also and diesel. It also encompasses renewable energy
includes services related to infrastructure investment sources such as geothermal, wind, bioenergy, solar,
studies. water flow and falls, movement, and temperature
differences in ocean layers. Hybrid energy sources
Supporting Business Activities that combine fossil energy with renewable energy,
1. Transportation and Warehousing as well as energy derived from energy storage
• Maritime port activities, including services related technologies, are also within the scope of these
to transportation for passengers, animals, or goods, supporting business activities.
operating terminal facilities, such as ports and • Other supporting electricity activities include services
docks, navigation activities, cargo inspection, and/or directly related to the provision and utilization of
container inspection using ionizing radiation sources electricity but not classified under groups 35121 to
(radioactive substances and ionizing radiation 35122. Examples include meter reading services,
billing compilation, electricity token trading activities,

www.akr.co.id
24

and other electricity support activities. and medium to low pressure (below 4 bar), whether
• The Procurement of natural and synthetic gas includes sourced from self-production or produced by third
businesses whose production involves improving the parties, to consumers or customers. Gas distribution
quality of gas. This includes purification, blending, through pipelines based on fees or charges is included
and other processes generated from natural gas in group 49300. This encompasses the distribution,
(including LPG), carbonization and coal gasification, supply, and procurement of all types of gas through
or other hydrocarbon materials. pipeline systems, trading gas to consumers through
• Distribution of natural and synthetic gas includes pipelines, activities of gas agents engaging in gas
distributing gas through high-pressure networks trading through distribution systems operated by
(above 10 bar), high-pressure (between 4 bar to 10 bar), others, and the operation of commodity exchanges
and capacity exchanges for gas transportation.

BUSINESS SEGMENTS,
PRODUCTS, AND SERVICES
The Company categorizes its main business activities into The Company’s excellence in reliable supply chain
4 (four) segments, as follows: management boosts capacity, quality, and timely
1. Trading and Distribution of Petroleum and Basic distribution of industrial petroleum to customers
Chemicals scattered across various regions of the country. This
2. Third Party Logistic Services reliability is supported by an operational fleet of
3. Manufacturing petroleum transport vessels, including 14 ship tankers,
4. Integrated Industrial Zones and Ports barges, and Self-Propelled Oil Barges (SPOB), used for
The Company offers different products within each sea and river distribution. The Company also possesses
segment of its business activities, including: a fleet of 229 trucks to deliver products across Indonesia.

Trading and Distribution

Since August 2018, the Ministry of Energy and Mineral
Resources announced the mandatory use of biodiesel
for all industrial and transportation users with limited
exceptions. With the B35 mandate, AKR has been
The Company’s primary business focus is on trading and
allocated the largest quota for Fatty Acid Methyl Ester
distribution. In this segment, the Company emphasizes 2
(FAME) blending among private companies.
(two) main products, namely petroleum (BBM) and basic
chemicals.
2. Non-Subsidized Retail Petroleum
The Company has entered into a partnership with BP to
1. Non-Subsidized Industrial Petroleum
develop the retail petroleum petrol station in Indonesia
Since 2005, AKR has commenced and developed the
in April 2017. Through this collaboration, a joint venture
business of distributing non-subsidized industrial
company named PT Aneka Petroindo Raya, operating
petroleum product to meet the needs of customers
under the name “bp AKR Fuels Retail,” was established.
from various industrial sectors. The Company continues
Under the exclusive agreement, both parties are
to develop innovative logistic network facilities for
committed to developing and providing a unique
distribution purposes, especially for customers in
consumer experience by leveraging BP’s expertise and
the mining, power generation, manufacturing,
experience along with AKR’s presence in the growing
transportation, and bunker industries. The Company
retail market in Indonesia.
is currently operating terminal tank facilities in several
strategic main ports located throughout Indonesia with
By the end of 2023, AKR had successfully opened
a total capacity of 819,400 KL.
46 AKR-branded gas stations located in the Jakarta
metropolitan area, Surabaya, Gresik, Malang, and Toll
Rest Area. With the industry’s development, the retail
sector is expected to be a growth-supporting factor in
the future for the petroleum segment.

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Report 25

INDUSTRIAL PETROLEUM PRODUCTS

Biodiesel Marine Petroleum Oil, IDO Lubricants

Mining Plantation Power plant Manufacturer Ship Manufacturer Ship Heavy

equipment

Ship Shipping

RETAIL PETROLEUM PRODUCTS

Subsidized Non-Subsidized Aviation Fuel

Biodiesel B35 High-octane gasoline, Premium Quality Avtur

Diesel, Active Technology

Truck Fishing Vessel Motor vehicles Aircraft

3. Subsidized Retail Petroleum 4. Basic Chemicals

Since 2010, the Company has been entrusted to AKR is the main distributor for PT Asahimas Chemical,
distribute non-subsidized petroleum (BBM) from responsible for distributing various basic chemicals,
the Downstream Oil and Gas Regulatory Agency including chlor alkali, solvents, acids, and organic and
(BPH Migas) due to its capacity and experience. The inorganic chemicals. The Company not only relies on
distribution of subsidized petroleum oil is carried out the distribution from PT Asahimas Chemical but also
through Vehicle Repetroleuming Stations (SPBKB) and engages in the trade and distribution of basic chemicals
Fishermen's Petroleum Filling Stations (SPBN) under from domestic and international suppliers.
the brand AKRA SOL, which is now a Biodiesel product.
In the 1970s, AKR constructed the first storage tank
The Company operates SPBKB and SPBN in Sumatra, terminal in Indonesia, establishing itself as the leading
Java, Bali, and Kalimantan, with a well-organized chemical distributor with the largest market share
terminal network and an extensive transportation fleet in Indonesia. This achievement is not only supported
to efficiently carry out distribution. This strengthens the by superior infrastructure but also by the strength of
Company's position as it receives regular assignments an integrated supply chain and logistics system. The
from BPH Migas for Biodiesel distribution. synergy between reliable infrastructure and supply
chain and logistics makes AKR the preferred choice
for various industries in Indonesia requiring a supply
of basic chemicals. Some of AKR’s industrial customers
include mineral smelters, consumer goods, textile, and
glass.

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

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26

5. Lubricants Aircraft Refueling Depot (DPPU) at the special airport

The company is accelerating its business expansion IMIP in Morowali, Central Sulawesi, and Cibubur. This
in the lubricants sector through its subsidiary, PT also made AKR the first private company to distribute
Anugerah Lubrindo Raya (ALR). Established on aviation petroleum in Indonesia.
February 7, 2019, ALR operates as a subsidiary of PT
Anugerah Krida Retailindo, focusing on trading and 7. Gas
distributing lubricants, particularly for sectors such as On August 4, 2021, the Company and PT Bayu Buana
industry, maritime, mining, and commercial vehicles, Gemilang (BBG) entered into an agreement to establish
carrying the Castrol brand, a well-known name in the a joint venture named PT Berkah Buana Energi (BBE).
lubricants industry. With this move, the Company aims The purpose has been to engage in the construction,
to broaden its business portfolio and strengthen its management, and development of a natural gas
foundation in the sector through collaboration with a distribution network through pipelines that connect
globally recognized brand. gas sources to customers.

6. Aviation Petroleum In the initial stage, the joint venture's activities focus
In November 2016, the Company announced the signing on developing business in the JIIPE Gresik Industrial
of a joint venture with Air bp to distribute aviation Estate, to meet the industrial needs in that area. Under
petroleum at airports in Indonesia. The joint venture this agreement, the Company holds a 65% ownership
subsequently formed PT Dirgantara Petroindo Raya stake, while BBG owns a 35% stake.
(DPR). In August 2019, DPR officially opened the first

Logistics Services
With an excellent logistics infrastructure, including The Company holds a 51% stake in PT Jakarta Tank
warehouses, storage tanks, ships, and trucks, AKR offers Terminal (JTT), a joint venture with Royal Vopak. JTT
efficient services to third parties that includes effective focuses on operating an independent petroleum (BBM)
and reliable bulk cargo management services at major storage tank terminal with a total capacity of 350,000 cbm,
ports in Indonesia. at Tanjung Priok port. JTT is one of the largest private tank
terminal owners in Indonesia, equipped with a dock and
The Company offers land transportation services to support underwater pipelines, and contributes to enhancing the
logistics through its subsidiary, PT AKR Transportasi Company's petroleum distribution capabilities, serving
Indonesia. Additionally, through PT AKR Sea Transport, the as an independent tank terminal with customers from
Company provides shipping vessels for delivering products leading oil companies. The types of products and services
to consumers and serves third parties. AKR continues to provided include the following.
develop essential infrastructure for receiving, storing, and
transporting various products.

Service

Bulk Handling Services

Container Handling Services

Land and Sea Transportation

Tank Storage

Vendor Managed Inventory

Warehousing

Port services through affiliated PT BMS

The Company offers a Vendor Managed Inventory (VMI) system for its major customers. In this, the inventory of petroleum
(BBM) is managed at the customer's location, where customers only need to pay based on their actual usage. AKR is
responsible for ensuring the availability and efficient management of the inventory with implementation of VMI seen as a
commitment by the Company to add value to customers by providing better inventory management solutions.

Summary Report 2023

 Summary
Report 27

Manufacturer
The manufacturing segment focuses on the production of high-quality wood adhesive materials. This production is carried
out by the subsidiary PT Arjuna Utama Kimia (Aruki), located in Surabaya, East Java. Aruki is responsible for providing
adhesive materials needed by various companies in the wood and paper industry in Indonesia. The types of products and
services are as follows.

Product Brand Service

Urea-formaldehyde Resin Uloid Plywood and timber

High Solid Urea-formaldehyde Resin Uloid Particle Board and MDF

Melamine-formaldehyde Resin Uloid Plywood and timber

Planol-formaldehyde Resin Uloid Plywood and timber

Wood working, Furniture,

Two Component Vinyl Urethane Adhesive Struct Bond
Flooring & FJLB

High performance dry

Polyacrylamide Monomer (PAM) Resin HOFMANN strength enhancement
resin for paper

High performance dry

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

Paper wet strength

Melamine Resin URAMIN
improvement resin

Multi-purpose adhesive for

Poly Vinyl Acetate PVAc
wood and paper

Industrial Zone
As part of its expansion strategy, AKR has developed the zone, 406 hectares for the seaport, and 800 hectares for
Java Integrated Industrial and Port Estate (JIIPE) located in housing and commercial spaces, developed by affiliated
Gresik, East Java, with the aim of developing a world class companies of AKR.
industrial estate which provides industrial lands parcels,
efficient logistic and utilities to industrial tenants. JIIPE has As a special economic zone themed around technology
a deep-sea port integrated with a large industrial area and and manufacturing for the government's downstreaming
has good connectivity within the rapidly growing province program, JIIPE is equipped with world-class supporting
of East Java. facilities such as power plants, water channels, wastewater
treatment, and information technology. These supporting
This project is one of the integrated industrial zone with facilities are expected to generate sustainable revenue,
deep sea port, covering the area of 3,000 hectares. The expanding the industrial business beyond land sales and
developed area includes 1,761 hectares for the industrial leases. The types of products and services provided are as
follows.

Products

Industrial Zone

Port and Port Operator

Utilities & Infrastructures

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28

VISION
AND MISSION

VISION

To be the leading
provider of logistic
services and supply
chain solutions for bulk
chemicals and energy
distribution in Indonesia.
MISSION
Optimizing our potential
to build sustainable
stakeholders value.

Review and Approval of the

Board of Commissioners
and Board of Directors on
the Company’s Vision and
Mission

The Board of Commissioners and Board of Directors

conduct reviews of the Vision and Mission to ensure their
alignment with long-term objectives, documented in the
management report, reviewed and published annually.

Summary Report 2023

 Summary
Report 29

KEY COMPANY
VALUES

Collaborative
Reward for
Performance

Empowers
Your Team
Zero Tolerance

Agile

Entrepreneurial
Spirit

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30

COMPANY
RECORD

1960 2019
Trading of basic chemicals established in Surabaya. • Leasing of land for the Coppers Smelter project at
JIIPE
• Opening of the Air bp AKR JV Avtur Terminal in
1977
Morowali, Central Sulawesi
Formalization of the business with the establishment
• JIIPE Industrial Area, through PT Berkah Kawasan
of PT Aneka Kimia Raya on November 28, 1977.
Manyar Sejahtera, obtains Integrated ISO
Certification
1980
AKR begins constructing chemical storage tanks and
2018
warehouses at several ports.
• AKR completed divestment of Kalista Liuzhou
Chemical Ltd in China
1994 • AKR hands over the Sorbitol factory land for auction.
Initial public offering on October 3, 1994; AKR shares Khalista divestment process, including land auction,
listed on the Indonesia Stock Exchange with the code is completed
"AKRA". • JIIPE inaugurated as one of the national strategic
projects
• Project JTT Phase 2A, adding a capacity of 100,000
2004
KL, officially begins
• PT Aneka Kimia Raya Tbk renamed to PT AKR
• First BP AKR gas station officially opens
Corporindo Tbk on September 23, 2004.
• AKR acquires shares in Sorbitol Manufacturing
Plant PT Sorini Agro Asia Corporindo and Khalista 2017
Liuzhou Chemical Industries Ltd. • BP and AKR sign a Retail Joint Venture Agreement
in Indonesia
• Castrol & AKR sign Lubricants Distribution
2005
Agreement
AKR becomes the first national private company to
• AKR divests its shares in Guigang port in China
distribute non-subsidized petroleum in Indonesia
• JIIPE: PT Berlian Manyar Sejahtera port acquires a
76 years Concession
2006
AKR acquires and operates river ports in China 2015
• Handover of land to first industrial customer
2008 • Java Integrated Industrial and Port Estate (JIIPE)
• AKR purchases its first petroleum transport ship, approved by the government under the KLIK
SPOB AKRA-10 program
• Stagen 50.000 KL terminal commissioned • Joint Venture Agreement for aviation petroleum
distribution signed with Air bp
• JIIPE port begins operations
2010
• AKR becomes the first national private company
to distribute subsidized petroleum in Indonesia 2013
through the operation of petrol station for motorists AKR and Pelindo jointly begin developing the
and for (SPBKB) and for fisheries (SPBN) Java Integrated Industrial and Ports Estate (JIIPE),
• Phase I of PT Jakarta Tank Terminal, a subsidiary integrating industrial areas with deep-sea ports in
engaged in petroleum storage tank terminals in Gresik, East Java
Tanjung Priok, is inaugurated in April 2010
• AKR divests its ownership in PT Sorini Agro Asia
Corporindo

Summary Report 2023

 Summary
Report 31

2020 2023
• AKR pays off SR Bonds Phase 1 year 2017 Series A • PT Anugrah Kreasi Pratama Indonesia
amounting to IDR 895bn. established to operate Bonded Warehousing
• AKR obtains ISO 9001 - 2015 certification for the
in JIIPE
Trade & Distribution of Industrial Petroleum
Management System • PT Berkah Bunker Service established to
• AKR signs agreements to inaugurate a joint venture conduct maritime port services activities in
with Petronas Chemicals Group Berhad (PCG) for JIIPE
chemical distribution and establishes PT Anugerah • PT Berkah Renewable Energi Nusantara
Kimia Indonesia
established for the Operation of Power
Plants in the JIIPE Region
• AKR signs a Joint Development Agreement
2021
with BP GAS & POWER to develop an LNG
• Inauguration of the JIIPE Industrial Area as a Special
Economic Zone for the Technology & Manufacturing project in JIIPE
Sector • AKR adds 2 vessels, namely AKRA 103 and
• Establishment of a JV company for the Natural Gas 105, bringing the total to 14 vessels
Distribution Business
• Signing of a long-term land lease and construction
agreement for the operation of a special port for the
copper smelter
• AKRA included in major ESG indices: SRI-KEHATI
Index, ESG Quality 45 IDX KEHATI, ESG Sector
Leaders IDX KEHATI
• Anugerah Kimia Indonesia makes its first delivery of
basic chemicals to customers

2022
• AKRA stock split 1:5
• JIIPE Gresik installs rooftop solar power plants to
support the use of renewable energy commitment
• Signing of the Power Purchase Agreement between
BKMS and PLN to supply electricity for the single-
line copper smelter project in JIIPE SEZ
• AKR pays off the AKR Corporindo Phase I 2017
Series B Shelf Registration Bonds amounting to IDR
68 billion
• JIIPE receives Operational Certificate as the Gresik
SEZ
• 11 AKR storage terminals, 1 AKR branch, and JTT
receive the BLUE Proper Certificate
• Assignment of Subsidized Biodiesel Supply and
Distribution for 2023 – 2027

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32

FINANCIAL
SUMMARY
Consolidated Financial Position in Billions of Rupiah

Description 2023 2022 2021 2020 2019

Net Working Capital 5,588 4,561 2,716 2,940 2,065

Investment in Associate Entities 446 417 402 394 419

Current Assets 18,121 15,841 12,023 8,042 10,778

Non-current Assets 12,134 11,346 11,486 10,641 10,631

Total Assets 30,255 27,188 23,509 18,684 21,409

Short-term Liabilities 12,533 11,280 9,307 5,102 8,713

Long-term Liabilities 3,678 2,752 2,903 3,025 2,630

Total Liabilities 16,212 14,033 12,210 8,127 11,342

Equity Attributable to Owners of the Parent Entity 11,263 10,969 9,345 8,752 8,336

Non-controlling Interest 2,780 2,186 1,954 1,804 1,731

Total Equity 14,043 13,155 11,299 10,556 10,067

Total Assets Total Liabilities

Rp Billion Rp Billion

30,255 16,212
27,188 14,033

23,509 12,210
11,342
21,409
18,684
8,127

2019 2020 2021 2022 2023 2019 2020 2021 2022 2023

Total Equity Return on Equity Ratio

Rp Billion %

14,043 24.7
13,155 21.9
11,299
10,556 11.9
10,067 10.6
8.6

2019 2020 2021 2022 2023 2019 2020 2021 2022 2023

Summary Report 2023

 Summary
Report 33

Consolidated Profit (Loss) and Other Comprehensive Income In Billions of Rupiah

Description 2023 2022 2021 2020 2019

Sales and Revenues 42,087 47,540 25,707 17,716 21,703

Gross Profit 4,473 4,252 2,293 2,048 1,892

Operating Profit 3,561 3,087 1,455 1,258 1,095

Net Income for the Year 3,078 2,479 1,135 962 699

Net Income for the Year Attributable to Owners of the

2,780 2,403 1,112 925 717
Parent Entity

Net Income for the Year Attributable to Non-controlling

298 76 23 37 (14)
Interest

Total Comprehensive Income for the Year 3,048 2,576 1,158 972 656

Total Comprehensive Income for the Year Attributable to

2,761 2,453 1,126 929 688
Owners of the Parent Entity

Total Comprehensive Income for the Year Attributable to

287 123 32 43 (32)
Non-controlling Interest

Earnings per Share (Full Rupiah) 140.87 121,77 56.32 46.71 36.06

Sales and Revenues Operating Profit

Rp Billion Rp Billion

47,540 3,561
42,087
3,087

25,707
21,703
1,455
17,716 1,258
1,095

2019 2020 2021 2022 2023 2019 2020 2021 2022 2023

Net Income for the Year Attributable to

Gross Profit Owners of the Parent Entity
Rp Billion Rp Billion

4,473 2,780
4,252 2,403

2,293
2,048 1,122
1,892 925
717

2019 2020 2021 2022 2023 2019 2020 2021 2022 2023

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34

Earnings per Share Cash Balance

Rp Rp Billion

140.87 6,536
121.77

4,338
56.32
46.71
36.06
1,861 2,600
1,549

2019 2020 2021 2022 2023 2019 2020 2021 2022 2023

Consolidated Cash Flow In Billions of Rupiah

Description 2023 2022 2021 2020 2019

Net Cash Used in Operating Activities 3,502 2,629 2,945 1,067 660

Net Cash Used in Investment Activities (584) (276) (208) (139) (779)

Net Cash Used in Financial Activities (648) (873) (1,683) (1,239) (129)

Net Increase in Cash and Cash Equivalents 2,270 1,479 1,053 (311) (248)

Effect of Exchange Rate Changes (72) 258 (2) 0 (62)

Cash and Cash Equivalents at Start of Year 4,338 2,600 1,549 1,861 2,171

Cash and Cash Equivalents at End of Year 6,536 4,338 2,600 1,549 1,861

Consolidated Financial Ratios

in % unless stated otherwise

Description 2023 2022 2021 2020 2019

Profit Margin on Total Assets 9.2 8.8 4.7 5.0 3.4

Return on Equity (ROE) 24.7 21.9 11.9 10.6 8.6

Profit Margin on Revenue 6.6 5.1 4.3 5.2 3.3

Current Ratio (multiples) 1.4 1.4 1.3 1.6 1.2

Debt to Equity Ratio (multiples) 1.2 1.1 1.1 0.8 1.1

Debt to Total Assets Ratio (multiples) 0.5 0.5 0.5 0.4 0.5

Gross Profit Margin 10.6 8.9 8.9 11.6 8.7

Operating Profit Margin 8.5 6.5 5.7 7.1 5.0

Total Asset Turnover (multiples) 1.4 1.7 1.1 0.9 1.0

Net Gearing Ratio (multiples) -0.16 -0.12 0.02 0.22 0.27

Price to Earnings (P/E) Ratio (multiples) 10.1 9.2 12.6 10.9 21.7

Summary Report 2023

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Report 35

Profit Margin on Revenue Profit Margin on Total Assets

% %

6.6 9.2

5.2 8.8
5.1
4.3
3.3
5.0 4.7
3.4

2019 2020 2021 2022 2023 2019 2020 2021 2022 2023

Current Ratio Net Gearing Ratio

multiple multiple

1.6 0.27
1.4 1.4
1.3 0.22
1.2

0.02
2022 2023

2019 2020 2021 2022 2023 2019 2020 2021

2021

-0.12

-0.16

Debt to Equity Ratio Dividend Payout Ratio

multiple %

1.2 61.6 61.6

58.6
1.1 1.1 1.1
53.3
51.5
0.8

2019 2020 2021 2022 2023 2018 2019 2020 2021 2022

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36

OPERATIONAL
SUMMARY

Operating Segments as a Percentage of Sales and Revenue

In Billions of Rupiah

Description 2023 2022 2021 2020 2019

Trade and Distribution 38,213 44,698 23,712 16,219 20,200

Logistic Services 993 893 772 319 796

Manufacturing 558 800 684 376 443

Industrial 2,323 1,149 539 319 263

STOCK
SUMMARY
AKR Stocks 2019-2023

Description 2023 2022 2021 2020 2019

Market
Capitalization 29,608 28,103 16,500 12,265 14,658
(IDR Billion)

Highest Price
1,670 1,580 944 798 1,175
(IDR)

Lowest Price (IDR) 1,200 685 554 281 844

Closing Price
1,475 1,400 822 611 730
(IDR)

Trading Volume
(Number of 8,660,986,800 13,281,510,800 15,728,500,500 23,413,903,000 9,222,963,000
Shares)

Total Outstanding
Shares (Number 20,073,474,600 20,073,474,600 20,073,474,600 20,073,474,600 20,073,474,600
of Shares)
*) Adjusted for Stock Split

Summary Report 2023

 Summary
Report 37

Stock Price (IDR) Total

Trading Volume Market
Outstanding
Period (Number of Capitalization
High Low Closing Shares (Number
Shares) (IDR Billions)
of Shares)

2023

Quarter 1 1,650 1,200 1,550 2,364,381,600 20,073,474,600 31,114

Quarter 2 1,670 1,280 1,420 2,270,581,800 20,073,474,600 28,504

Quarter 3 1,560 1,255 1,545 2,547,584,300 20,073,474,600 31,014

Quarter 4 1,550 1,330 1,475 1,478,439,100 20,073,474,600 29,608

2022

Quarter 1 970 685 910 3,651,151,700 20,073,474,600 18,267

Quarter 2 1,215 865 1,030 2,782,534,300 20,073,474,600 20,676

Quarter 3 1,455 895 1,350 3,675,285,900 20,073,474,600 27,099

Quarter 4 1,580 1,310 1,400 3,172,538,900 20,073,474,600 28,103

Stock Trading Chart

Rp per share No. of shares traded

1,650 160,000,000

1,600
140,000,000

1,550
120,000,000
1,500

1,450 100,000,000

1,400 80,000,000

1,350
60,000,000
1,300

40,000.000
1,250

1.200 20,000,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2022 2023

Sanctions on Stock Trading

As of December 31, 2023, the Company has not been subject to any sanctions that may affect stock trading activities.

www.akr.co.id
38

BOARD OF COMMISSIONERS’
REPORT

The Board of Commissioners

recognizes that the positive
performance in 2023 serves as a
foundation from which AKR can
continue to improve standards
and embrace new growth.
Amidst an evolving business
landscape, AKR must seize
momentum and sustainably
manage business opportunities.

Soegiarto Adikoesoemo
President Commissioner

Summary Report 2023

 Summary
Report 39

Dear Shareholders and Stakeholders, SUPERVISION OF STRATEGY

IMPLEMENTATION
Gratitude to the Almighty for His abundant blessings and
grace, which enabled PT AKR Corporindo Tbk (AKRA) to In performing its oversight function, the Board of
navigate 2023 with remarkable results. Please accept the Commissioners monitors, directs, and evaluates the
Board of Commissioners’ Report for the Fiscal Year 2023. comprehensive and structured implementation of
strategies. Supervision is conducted with the ultimate
The Board of Commissioners has fulfilled its oversight goal of achieving performance improvement and business
duties and responsibilities, providing guidance to the progress. In carrying out its duties and responsibilities, the
Board of Directors to ensure that AKR is managed in Board of Commissioners is assisted by the Audit Committee
accordance with the established business plan, and and the Nomination and Remuneration Committee.
within the framework of Good Corporate Governance. The
Board of Commissioners encourages the enhancement The Board of Commissioners ensures that all directives are
of corporate governance practices, risk anticipation, and properly executed by the Board of Directors, evidenced by
mitigation, as well as the adoption of healthy business financial and operational performance growth supported
practices that benefit the Company. by effective strategy formulation, comprehensive business
models, and logistics infrastructure, promising business
ECONOMIC CONDITIONS IN 2023 prospects, reliable information technology quality,
adequate review processes, and audits, as well as solid risk
Escalating tensions in Europe and the Middle East management.
have led to a global economic slowdown, with Chinese
and European economies further exacerbating global The Board of Commissioners pays attention to several key
economic pressure. Global economic growth has yet aspects that may have positive impacts on performance,
to reach pre-pandemic levels, resulting in disparities in both for 2023 and beyond, instructing the Board of
various countries. Directors to continually formulate anticipatory measures
in response to macroeconomic conditions and political
According to the International Monetary Fund (IMF) in the dynamics.
World Economic Outlook Report for January 2024, global
economic growth is projected to reach 3.1% in 2023, a Furthermore, the Board of Commissioners focuses on
decrease compared to 3.5% in 2022. Economic disruptions the implementation of risk management, considering
and decreased productivity from inflation of 6.9% led the changes in internal and external dynamics. The Board of
Fed to raise interest rates to 5.25-5.50%. Commissioners ensures that risk management is carried
out systematically, structurally, and comprehensively,
The slowdown also caused Indonesia’s GDP to decrease while still adhering to the principle of caution. Another
to 5.05%, lower than the previous year’s 5.31%. Factors Board directive is to strengthen the implementation of
contributing to the decline include prolonged drought corporate governance to address the dynamics of the
or El Niño, and declining commodity prices. Although Company’s business environment.
Indonesia’s GDP in 2023 was lower than in 2022, it remained
within the expected range of 4.5-5.3% growth for 2023 from SUPERVISION MECHANISM AND
Bank Indonesia, above the IMF’s forecast of 4.9%. FREQUENCY OF ADVICE PROVISION TO
THE BOARD OF DIRECTORS
In response to these conditions, AKR has taken strategic
measures to maintain growth momentum in 2023, such
The Board of Commissioners maintains a healthy and
as disciplined and efficient inventory and working capital
consistent professional relationship with the Board of
management, aggressive enhancement of logistic
Directors, prioritizing the principle of mutual respect
capabilities and networks, and exploring new markets.
for each other’s authority. This relationship requires
communication and the organization of joint meetings
To achieve consistent growth, the Company continues
as a means for the provision of advice to the Board of
to expand into growing business lines such as retail
Directors.
petroleum, aviation, and lubricants. Additionally, to increase
land sales, the Company enhanced the competitive edge
The Board of Commissioners oversees performance
of industrial estate businesses, maximizing the benefits
compliance with established directives, and ensures that
of Special Economic Zones to attract both domestic and
the supervision and advisory functions are carried out by
foreign investors.
applying the principles of caution and responsibility. After
providing various directives, advice, and recommendations,
the Board of Commissioners monitors the follow-up
actions.

www.akr.co.id
40

There are four joint meetings with the Board of Directors, The Board of Commissioners has evaluated that the Audit
which the Board of Commissioners considers optimal, Committee performed its duties and responsibilities well.
evident from the compliance with directives and follow- The appointment of Public Accountant Firms and the
up actions carried out by the Board of Directors, thus evaluation results have been conducted in accordance
contributing to the improvement of the Company’s with the latest regulations, namely POJK Number 9
financial and operational performance. of 2023 regarding the Use of Public Accountant and
Public Accountant Firms’ Services in Financial Service
ASSESSMENT OF COMPANY AND Activities. The Audit Committee also assisted the Board of
DIRECTOR PERFORMANCE Commissioners in conducting internal audits and provided
evaluation reports on the provision of audit services for
In the environment of the declining prices of crude oil the 2023 Financial Statements with a summary of 10 (ten)
and other commodities, the Board of Commissioners meetings.
has evaluated that AKR’s resilience in 2023 was excellent,
indicating the solidity of AKR’s business model and strong The Nomination and Remuneration Committee reviews
implementation, resulting in the Company’s profitability and proposes succession planning for members of the
continuing with double-digit growth. The Board of Board of Directors and the Board of Commissioners,
Commissioners appreciates the performance of the Board and performed its duties well in 2023. The Nomination
of Directors in managing the Company throughout 2023, and Remuneration Committee provided adequate
especially in the JIIPE Industrial Estate business where the recommendations based on the reviews conducted with a
Company successfully recorded land sales of 91 hectares, summary of 4 (four) meetings.
an increase from the target of 75 hectares.
VIEWS ON CORPORATE GOVERNANCE
Based on the implementation of the established strategy IMPLEMENTATION
and the performance results, the Company was able
to achieve a commendable financial performance with One of the tasks and responsibilities of the Board of
significant improvements in various aspects. Net profit Commissioners is to oversee the implementation of
grew by 16% year on year from Rp2,403 billion in 2022 to corporate governance and ensure that AKR applies it
Rp2,780 billion with a 31% CAGR over the last five years. effectively and in accordance with applicable principles
Total assets increased from Rp27,188 billion in 2022 to and regulations. The Board of Commissioners has
Rp30,255 billion. This increase in profit also resulted in a observed that implementation of corporate governance
significant increase in ROA to 9.2% and ROE to 24.7%. has continued to increase, as seen from various awards
received, comprehensive governance structures, and
The Board of Commissioners realizes that embarking on recommendations followed up by the Company. In order
new businesses is not without its challenges. Therefore, to meet best practices in implementing governance, AKR
maturity in research and planning are crucial factors continues to make improvements and refinements in both
determining the success of these businesses, especially structure, processes, and mechanisms.
amidst global uncertainty and the transition of government
leadership in Indonesia. AKR’s responsive steps in following up on recommendations
and improving governance are reflected in the
The Board of Commissioners provides guidance to study implementation of the Code of Ethics and Integrity Pact
risks and opportunities holistically regarding decisions socialization, where a total of 1,654 employees signed
made so that a reasonable risk profile ensures opportunities the Integrity Pact, followed by all central and branch
remain within the Company’s strategic corridor. The Board employees of AKR.
of Commissioners hopes that the positive performance
achieved throughout 2023 becomes a foundation for The Board of Commissioners considers it important to build
AKR to continually improve standards and welcome new awareness among personnel regarding the application
growth. of corporate governance, so therefore provides guidance
to the Board of Directors to continue strengthening
ASSESSMENT OF COMMITTEES UNDER the commitment through socialization, education, and
THE BOARD OF COMMISSIONERS training. The Board of Commissioners also encourages the
integration of corporate governance as part of the culture
In order to improve performance effectiveness, the and essence in operational activities, including interactions
Board of Commissioners is supported by the Audit with external parties.
Committee and the Nomination and Remuneration
Committee. Assessment of the committees’ performance
is conducted both individually and collectively through
measuring attendance at meetings, ability to cooperate
and communicate actively, ability to analyze financial and
operational performance, and the quality of advice and or
recommendations related to oversight tasks.

Summary Report 2023

 Summary
Report 41

VIEWS ON BUSINESS PROSPECTS CHANGES IN THE BOARD OF

COMMISSIONERS COMPOSITION´
The Board of Commissioners recognizes that, amidst
issues of economic slowdown and ongoing geopolitical Changes in the Composition of the Board of Commissioners
pressures, the prospects for the industry and logistics & In 2023, the Board of Commissioners underwent changes
supply chain sectors in Indonesia will continue to grow. due to the resignation of one Commissioner, namely I
This is confirmed by government support for improving Nyoman Mastra. Thus, there was the appointment of a
infrastructure quality to enhance industry competitiveness new Commissioner, Sofyan A. Djalil, in accordance with
and attract investment. The development of downstream the Annual General Meeting of Shareholders’ Decision
programs continues to show growth from year to year, based on Deed No. 47 dated April 28, 2023.
driving industrial growth in Eastern Indonesia. Therefore,
the availability of a logistics infrastructure is crucial, The composition of the Board of Commissioners as of
considering Indonesia is an archipelagic country with high December 31, 2023, is as follows:
logistic challenges that need to be addressed promptly. Soegiarto Adikoesoemo : President
Commissioner
In facing challenges, AKR consistently applies a disciplined Sofyan A. Djalil : Commissioner
business model and develops infrastructure capabilities, Muhammad Fauzi Maulana Ichsan : Independent
preparing for additional logistics capacity of ships and Commissioner
port tank terminals to serve the distribution of petroleum
and industrial chemicals in new areas. The Board of APPRECIATION AND CONCLUSION
Commissioners believes that logistics infrastructure is
the foundation of a trading and distribution businesses. The Board of Commissioners of PT AKR Corporindo
Therefore, AKR must always prioritize innovations that Tbk expresses its utmost appreciation to the Board
support asset optimization and efficiency improvement of Directors, management, and employees for their
through control towers and the development of artificial extraordinary contributions that have led the Company to
intelligence for asset monitoring in distribution activities. achieve impressive performance in 2023. The dedication
and hard work of the AKR team have been key to this
In the trend of downstream developments, AKR accomplishment.
has positioned itself as an aggregator, facilitating
developments in related sectors. With its status as a Special Gratitude is also extended to shareholders and stakeholders
Economic Zone (SEZ), JIIPE provides fiscal and non-fiscal for their continued trust and support. The participation
advantages for various industries within the area. Industrial and collaboration of all parties have had a positive impact
utility needs are crucial to improve competitiveness and on the growth and stability of the Company. This spirit of
are expected to provide stable and sustainable income for cooperation must continue, leading AKR towards greater
the Company. success in the years to come where, together, challenges
will be overcome and opportunities for sustainable growth
The Board of Commissioners believes that to maintain capitalized upon.
consistent growth in the future, AKR must be able to
develop according to future market needs supported by
innovations that align with industry dynamics. In addition to
developing the business-to-business segment, expanding
the retail petroleum market needs to continue to prepare
for the growth of the premium quality petroleum market.
Several initiatives with cleaner energy markets in the
transition period also need to be carefully considered to be
executed with adequate profitability results, and a healthy
financial performance.

Jakarta, April 5, 2024

On Behalf of the Board of Commissioners

Soegiarto Adikoesoemo
President Commissioner

www.akr.co.id
42

BOARD
OF COMMISSIONERS

Fauzi Ichsan Soegiarto Adikoesoemo Sofyan A. Djalil

Independent Commissioner President Commissioner Commissioner

Summary Report 2023

Summary
Report 43

www.akr.co.id
44

BOARD OF DIRECTORS’
REPORT

With strategic measures in place,

AKR has achieved the anticipated 16%
growth in Net Profit in 2023, reaching
Rp2,780 billion with a Compound
Annual Growth Rate (CAGR) of 31% over
the past five years. The performance
reflects outstanding accomplishments,
demonstrating effective sustainability
and continuity. Investments in the
industrial estate sector have notably
boosted contributions and ongoing
advancements, reinforcing the
Company’s commitment to delivering
enhanced value to its stakeholders.

Haryanto Adikoesoemo
President Director

Summary Report 2023

 Summary
Report 45

Dear Shareholders and Stakeholders, The goal of the Indonesian government is to escape
the middle-income trap and become a high-income
Gratitude to Almighty God for His grace and blessings, nation with an average economic growth rate of at least
enabling PT AKR Corporindo Tbk to navigate 2023 with 5% per year, and average investment growth of 6.8%. To
promising performance results. Amidst various dynamics, achieve this, the government has implemented several
AKR has maintained a resilient stance, delivering policy strategies, including the Omnibus Law, which
significant growth over the past five years. eases regulations through Job Creation, and facilitating
business licensing to provides tax incentives. Indonesia is
On this auspicious occasion, on behalf of the Board of additionally using commodity downstreaming policies to
Directors, the Company’s strategic implementation and build a strategic industrial ecosystem to increase value,
performance in 2023 will be outlined, including innovative developing 20 Special Economic Zones (SEZs) across the
measures taken to address current business challenges. archipelago.
The Board acknowledges and appreciates the efforts of
all employees and management for achieving the 2023 ANALYSIS OF THE COMPANY’S
targets. PERFORMANCE IN 2023

MACROECONOMIC ANALYSIS Challenges and Strategic Initiatives

The Board of Directors formulates strategic policies
With the official end of the COVID-19 pandemic, the by considering macroeconomic aspects and general
global landscape in 2023 remains marked by economic business developments, incorporating input from various
deceleration and geopolitical tensions. According to the stakeholders involved in operations. Additionally, the BOD
International Monetary Fund’s (IMF) World Economic focuses on aligning AKR’s business lines to strengthen
Outlook Report in January 2024, global economic growth the overall business network. Here are the key strategic
is forecasted to decline to 3.1% in 2023 from 3.5% in 2022, initiatives for 2023:
with no anticipated change in 2024.
1. Throughout 2023, the Company executed strategic
Geopolitical strains are evident, not only in Europe but also policies in trading and distribution which focused on
in the Middle East. Towards the end of 2023, the escalating improving its competitive advantage in the logistics
situation in the Middle East resulted in attacks on shipping supply chain, designing a business model that can
vessels in the Red Sea. Consequently, petroleum-laden minimize risks, pass on costs to customers and
tankers had to seek alternative routes, causing disruptions manage working capital more efficiently. Product
in the global oil supply chain and driving up oil prices, inventory has also been closely monitored to maintain
previously impacted by commodity price moderation. a net open position. Efforts to develop further logistics
infrastructure, such as IT monitoring system upgrades
As a supply chain logistics provider for petroleum and and the addition of tanker logistics capacity and tank
basic chemicals, AKR employs a formula-based business terminals, are clear evidence of the Board of Directors
model that allows for price pass-through to customers drive for operational efficiency to ensure profitability
and prioritizes net open positions. With its robust and and growth.
comprehensive business model, coupled with effective risk 2. AKR has identified growth opportunities in eastern
management, the Company has consistently maintained Indonesia in downstream developments and smelters.
performance and fostered growth. The Board has prepared infrastructure network and
logistics fleet expansions to address the challenges of
The Indonesian government has taken steps to normalize increased demand for petroleum and basic chemicals
post-pandemic policies, aiming to gradually stimulate in the region.
economic growth while keeping inflation in check. 3. The Board is continually developing JIIPE to attract
Resilience was evident through sustained domestic further international and domestic investors, with
demand and supply strength until the third quarter of 2023. marketing that leverages the area’s potential in the
Towards the end of 2023, Indonesia began preparations value-added supply chain ecosystem to drive national
for elections to choose a new leader, impacting decisions industrial growth. The industrial zone segment is
of both domestic and foreign businesses and investors. becoming increasingly significant and is expected to
Nevertheless, The Investment Coordinating Board (BKPM) further increase in the coming years. JIIPE has already
recorded that investment realization in 2023 successfully attracted significant investment, with several purchase
exceeded the target, reaching Rp1,419 trillion. agreements executed and land sales to international
companies who wish to establish factories in Indonesia,
building a strong foundation to generate recurring

www.akr.co.id
46

income from the provision of port services and utilities prices caused by the normalization of petroleum prices and
such as electricity, water, and gas. international base chemicals. Despite this, AKR managed
4. Developing and expanding the business portfolio is an to increase sales volume and maintain a 9% margin in
optimum way to meet sustainability challenges and, as the trading and distribution segment, contributing to the
such, the Company is expanding its reach and capability growth of the logistics segment to Rp994 billion in 2023.
in the growing retail petroleum segment by increasing
the number of bp AKR stations to 46 units. As the use The industrial estate segment, particularly KEK JIIPE
of high-quality petroleum increases, AKR will be in a Gresik, surpassed its land sales target by recording sales
strategic position to serve this market. The Company of 91 Ha in 2023, up from 44 Ha in 2022, a 102% increase
is also continuing to drive the growth of other joint in revenue from the industrial estate segment, reaching
ventures in aviation petroleum, lubricant distribution, Rp981 billion, with a gross profit growth of 81% year-on-
chemical distribution, warehousing, bunker services, year (YoY) and increased contribution to gross profit 22% in
and gas distribution. 2023 compared to 13% in 2022.
5. In 2023, the government decided to increase B35 to
B35 biodiesel and AKR is supportive of this mandatory Operational efficiency improvements led to significant cost
program. With capacity for in-line blending and strict IT reductions and strong operating cash flow, contributing to
monitoring, the Company can build on its performance EBITDA growth of 14% to Rp4,048 billion. The Company
as one of the main partners in the energy transition maintained a well-managed balance sheet with improved
process. In order to prepare for the growth opportunities return on assets (ROA) and return on equity (ROE) reaching
in green energy demand, AKR is also developing cleaner 9.2% and 24.7% respectively. Total assets increased by 11%
energy distribution, establishing several subsidiaries to to Rp30,255 billion, driven by growth in fixed assets and
analyze and serve the market. cash reserves, which reached Rp6,536 billion by December
31, 2023.
Role of the Board of Directors in Strategy Formulation
and Implementation Supervision AKR continues to enhance its operational efficiency,
The Board of Directors, as per the Board of Directors resulting in significant cost reductions and reporting of a
Charter, holds responsibility for managing the Company strong operational cash flow. AKR recorded 14% growth in
in alignment with its objectives outlined in the Articles of EBITDA to Rp4,048 billion, which has enabled the funding
Association. The strategies and policies implemented in of expansions and significant interim dividends to be paid
2023 were crafted in line with the Vision and Mission, taking to shareholders.
into account the risks associated with growth trajectory. The
Board actively engages in strategy formulation, identifies Total liabilities also increased by 16% to Rp16,212 billion from
business challenges, provides economic direction, and Rp14,033 billion in 2022, primarily stemming from trade
sets targets congruent with business trends. payables and additional bank borrowings for industrial
zone subsidiaries. AKR operates a healthy working capital
Regular supervision of the Company’s performance is ratio with a Current Ratio of 1.4x and a Net Cash position
conducted by the Board to ensure adherence to the with a net gearing of -0.16x.
strategic plan and alignment with other business units.
Supervision includes regular meetings to coordinate AKR’s overall performance has seen excellent
strategy implementation and compliance with budget achievements, proving to be sustainable and consistent.
plans. Effective communication is emphasized to facilitate Investments in the industrial zone segment have shown
strategy execution success, analyze risks preemptively, and increased contributions and the success in generating
make timely adjustments and follow-ups. profit has undoubtedly strengthened the Company’s
mission to deliver value to shareholders and stakeholders.
In 2023, the Board of Directors implemented a tiered
monitoring system of the performance of division IMPLEMENTATION OF CORPORATE
heads and branch managers, followed by a transfer of GOVERNANCE
information, market analysis, and overall sharpening of
implementation execution. In addition, the Board held For 63 years, AKR has built a strong reputation for
Consolidation Meetings to measure the effectiveness of leadership as a trusted provider in Indonesia’s chemical
the Company’s strategies and achievements. and energy supply chain, attributed to the optimization
of development potential and the steadfast maintenance
Financial Performance Achievement 2023 of integrity and credibility among all stakeholders (pivotal
AKR successfully achieved 16% growth in net profit in 2023, factors that have enabled AKR to expand its business
reaching Rp2,780 billion compared to Rp2,403 billion in presence across various sectors).
2022, reflecting a compound annual growth rate (CAGR)
of 31% over the last five years. This was primarily driven by AKR prioritizes the enhancement of cultural internalization,
the core business sectors of trade distribution, logistics, bolstering corporate governance. This approach ensures
and the industrial estate segment. Although there was an that corporate governance practices deliver sustainable
11% decrease in revenue in 2023, dropping from Rp47,540 value for stakeholders, including shareholders, employees,
billion to Rp42,087 billion, this was due to lower selling consumers, suppliers, partners, regulators, and the public.

Summary Report 2023

 Summary
Report 47

To uphold best practices in corporate governance, newsletters, performance appraisals, and direct messages
AKR refines its structure, processes, and mechanisms, from top management. The Company also prioritizes an
periodically assessing the alignment of its practices inclusive and equitable work environment, ensuring equal
with national and international standards, such as the opportunities regardless of gender, ethnicity, race, or
ASEAN Corporate Governance Scorecard, POJK No.21/ religion. As a result, the Company maintains a gender ratio
POJK.04/2015, and the 2021 General Guidelines for of women at the middle-top level above 20%.
Indonesian Corporate Governance (PUGKI) issued by the
National Committee on Governance Policy (KNKG). In recognition of its commitment to developing human
resources, AKR received the Human Capital on Resilience
AKR instills a commitment to corporate governance Excellence Award 2023 (HCREA) from First Indonesia
among personnel through socialization, education, and Magazine in 2023. This award acknowledges AKR’s efforts
training initiatives, integrated into the Company’s culture in nurturing agile HR talents capable of adapting to
and operational activities, including interactions with changes in the business landscape. The Board of Directors
external parties. aims to maximize each individual’s potential to be adaptive
and globally competitive, preparing them to tackle future
In 2023, AKR updated its Code of Ethics and Conduct and challenges in the digital era while maintaining a healthy
conducted extensive socialization of these guidelines in work environment.
alignment with regulatory standards. The Code of Ethics
was disseminated across all levels to ensure employees OPTIMIZATION OF INFORMATION
align with the Company’s values in their daily activities. TECHNOLOGY
Additionally, the Integrity Pact was signed by 1654
employees, demonstrating their commitment to ethical The Board of Directors at AKR acknowledges the strategic
conduct. Furthermore, AKR released several policies importance of information technology (IT) management
derived from the Code of Conduct, such as a human rights in supporting business operations, recognizing that IT
policy to safeguard employees, and a health, safety, security, implementation not only supports cost leadership but also
and environment policy to reinforce commitments to effectively and efficiently enhances business continuity.
workplace safety and environmental protection. The Company continues to innovate and invest in IT
systems to enhance service quality in line with customer
The commitment to corporate governance fosters efficient expectations.
and responsible business operations, driving consistent
growth and delivering satisfactory value to stakeholders. In 2023, the Company strengthened the use of IT systems
It also enhances trust among investors, shareholders, with Artificial Intelligence (AI) in operational monitoring,
regulators, government entities, customers, and opens ranging from monitoring fleet distribution routes to
new business opportunities. assessing driver behavior to ensure the drivers’ well-
being. With this tool, drivers on duty are ensured to be
HUMAN RESOURCES DEVELOPMENT in a healthy and prime condition. This effort is further
reinforced by enhancing supervision in the Control Tower
Human resources (HR) are crucial in ensuring the to 24/7. Consequently, the Company achieved increased
sustainability of a company’s business, and AKR places productivity in its truck fleet, positive growth in product
significant emphasis on developing future-ready HR distribution, and maintained work safety indicators.
through regeneration programs aimed at cultivating
future leaders. The management team actively analyzes AKR’s IT system ensures accountability and transparency,
competent internal cadres and incorporates them into particularly with the implementation of SCADA in the
workforce planning processes based on employee blending and filling process at storage terminals. This
replacement evaluations, ensuring that HR is optimally system enables AKR to be accountable for the quantity
positioned. and quality of distributed products. Additionally, the
Company aims to enhance existing applications such as
In 2023, the commitment to employee education and Enterprise Resource Planning (ERP), Distribution Planning
training continued, investing Rp1.5 billion in training for efficient customer trips, and Customer Relationship
costs. Planned education and training programs with Management (CRM).
specific mandatory targets for employees at every level
are implemented as strategies to cultivate superior and As part of IT governance to protect stakeholders,
competent human resources capable of working actively cybersecurity enhancements are prioritized to secure
and efficiently, thereby enhancing productivity. Company and consumer data. The IT Department,
responsible for IT management and development at AKR,
HR development at AKR is guided by the core values: conducts reviews and audits to maintain data privacy
Entrepreneurialism, Collaboration, Agility, Performance- and ensure cybersecurity measures are implemented
based Rewards, Team Empowerment, and Zero effectively. Continuous supervision and improvement
Tolerance for discrimination. These values are continually of the Data Center and Disaster Recovery Center are
internalized through communication channels such as conducted to minimize risks during disruptions.

www.akr.co.id
48

SOCIAL AND ENVIRONMENTAL to Rp24,19 billion, marking a 6% increase compared to the

RESPONSIBILITY previous year’s Rp22,85 billion. Furthermore, AKR and its
entities are dedicated to prioritizing the employment of
AKR understands the importance of ethical responsibility local labor and suppliers. In 2023, 84% of AKR’s workforce
and compliance with laws and regulations in all business needs were met locally. Community empowerment is also
activities, aiming for sustainable development that evident in redirecting labor from local companies and local
balances profits with added value for shareholders, fishing communities to the JIIPE area. Regular monitoring
community needs, and environmental protection in the of local biodiesel procurement loading ensured that the
operational areas, allowing the Company to grow alongside TKDN biodiesel figure exceeded 40% in 2023. Moreover,
its stakeholders. the Company maintains continuous monitoring of local
procurement loading in all projects to ensure compliance
AKR understands the importance of ethical responsibility with the minimum 30% requirement.
and compliance with laws and regulations in all business
activities, aiming for sustainable development that In Our Conduct, AKR has introduced a range of policies
balances profits with added value for shareholders, covering health, safety, and environmental concerns,
community needs, and environmental protection in the human rights, and sustainable procurement. These policies
operational areas, allowing the Company to grow alongside are further reinforced by the updated Code of Ethics and
its stakeholders. Conduct, reflecting the Company’s adaptability to evolving
business conditions. This framework plays an important
In the Our Business Portfolio pillar, AKR achieved role in reinforcing the dedication of all employees to align
double-digit net profit growth through successful their behavior with the Company’s values and integrate
management. The JIIPE project ranked first among 10 them into their daily tasks.
KEKs, demonstrating a multiplier effect with significant
worker absorption and economic contributions. Notably, The Company has observed that the implemented ESG
JIIPE experienced a cumulative employment growth, initiatives have had a positive impact on several important
absorbing 32,000 workers. This project also contributed aspects within the Company and the local economy.
significantly to the regional and national economy by Among these, through operational excellence involving IT
attracting cumulative investments totaling Rp71,5 trillion innovation, efficiency has been maintained, keeping cost
as of December 31, 2023. levels and profitability in check. Good relationships with
various stakeholders can also be established, providing
In 2023, the Company took further steps to increase opportunities to open new subsidiaries that will further
investment in cleaner and/or renewable energy develop the cleaner energy business, especially JIIPE.
businesses through several partnerships. By successfully With exposure to ESG initiatives, AKR can expand its ESG-
implementing the government’s B35 biodiesel program minded shareholder investor base and increasingly attract
and initiating solar panel projects, the Company gradually investors to open factories with facilities in KEK JIIPE Gresik.
increased the share of renewable energy in its energy The Board of Directors will further refine the Company’s
mix, now reaching 27% compared to 23% the previous ESG initiatives by considering recommendations provided
year. Additionally, with reliable operational performance by stakeholders.
through the optimization of the IT monitoring system,
emission intensity was maintained at 0.02 tons of CO2 per ASSESSMENT OF THE PERFORMANCE OF
rupiah million of gross profit, achieved while expanding THE SUPPORTING COMMITTEE OF THE
the fleet of trucks and vessels to meet increasing customer BOARD OF DIRECTORS
demand.
In formulating and overseeing the implementation of the
In the Our People Pillar, AKR achieved zero fatalities sustainability strategy, the Board of Directors is supported
across its business operations and maintained a safe by the ESG Committee, consisting of Directors leading
work environment with 13 million kilometers of safe truck key business pillars, and overseen by the Independent
mileage, reflecting a dedication to fostering inclusivity Commissioner. In 2023, based on recommendations from
and safety at work. The Company also emphasizes the ESG taskforce and stakeholders, the ESG Committee
internal succession planning and equal opportunities endorsed essential ESG policies and a new Code of Ethics
for employees from diverse backgrounds. In 2023, AKR and Conduct. The Committee has been effective in its
appointed capable women to important leadership roles, duties, including strategy formulation and evaluating ESG
maintaining a 24% representation of women in middle-to- performance, involving various stakeholders, particularly
top-level positions. members of the ESG taskforce.
In the Our Communities pillar, Corporate Social
Responsibility activities are tailored to meet the needs BUSINESS OUTLOOK 2024
of local communities surrounding operational areas. In
2023, AKR, along with its subsidiaries and joint venture In the World Economic Outlook report for January 2024,
companies, collectively funded CSR initiatives amounting the IMF projected a global economic growth rate of
3.1%, consistent with the growth rate observed in 2023.

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Additionally, Indonesia’s Gross Domestic Product (GDP) CHANGES IN THE COMPOSITION OF THE
is forecasted at 5.0%, unchanged from the previous year. BOARD OF DIRECTORS
The Board of Directors anticipates an active role from
the government in maintaining economic stability and The composition of the Board of Directors has not changed,
fostering growth through measures such as increased so until the end of 2023 is as follows:
investment and exports, social assistance and subsidies,
Haryanto Adikoesoemo : President Director
and structural reforms to enhance competitiveness.
Jimmy Tandyo : Director
These reforms include simplifying regulations, upgrading
Bambang Soetiono Soedijanto : Director
infrastructure quality, and improving education and labor Mery Sofi : Director
skills. Suresh Vembu : Director
Nery Polim : Director
In 2024, AKR plans to capitalize on the downstream Ter Murti Tiban : Director
momentum, aligning with the government’s initiatives
to accelerate industrial growth. Through the JIIPE APPRECIATION
project, AKR offers an integrated supply chain ecosystem
encompassing multimodal transportation, deep-sea ports, On behalf of PT AKR Corporindo Tbk’s Board of Directors,
electrical energy availability, and streamlined licensing sincere appreciation and thanks to the Board of
processes. These factors contribute to enhancing the Commissioners, management at all levels, and all AKR
competitiveness of the national industry, particularly employees for their unwavering support and dedication
supporting petroleum and basic chemicals demand from throughout 2023 is extended. Gratitude must also go to the
smelters in Eastern Indonesia. shareholders, customers, partners, regulators, and other
stakeholders who have played a crucial role in keeping
The Board of Directors is confident that by maintaining a AKR at the forefront of every industry in which it operates.
robust business model, practicing disciplined management
of working capital and inventory, and staying committed The outstanding achievements in 2023 are a testament to
to consistently delivering value to stakeholders, steady the exceptional performance of the management team.
profit growth in the coming years can be achieved. With the trust of stakeholders and a commitment to
delivering superior value, confidence in the ability to tackle
In the future, AKR will utilize its established logistics future challenges and achieve sustainable growth in the
infrastructure to improve capabilities and networks to years ahead is well placed.
meet new demands in eastern Indonesia. Market share
in retail petroleum will continue to be expanded, to better
cater to the need for high-quality petroleum. Moreover,
AKR will further explore partnerships established in 2023
aimed at developing cleaner and renewable energy
businesses, with a specific focus on completing facilities at
KEK JIIPE Gresik.

Jakarta, April 5, 2024

On behalf of the Board of Directors

Haryanto Adikoesoemo
President Director

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BOARD OF DIRECTORS

Suresh Vembu Haryanto Adikoesoemo Bambang Soetiono Ter Murti Tiban

Director President Director Soedijanto Director
Director

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Report 51

Nery Polim Jimmy Tandyo Mery Sofi

Director Director Director

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52

OPERATIONAL
OVERVIEW

Business Segments Served by the Company

The Company and its subsidiaries were managing four 3. Manufacturing: The subsidiary Aruki is involved in the
operating segments at the end of 2023: production of adhesive materials.
1. Trade and Distribution: The distribution of petroleum 4. Industrial Estate: An indirectly owned subsidiary
products and various basic chemicals, such as caustic through UEPN, it encompasses the industrial estate
soda, sodium sulphate, PVC resin, and soda ash. part of the JIIPE project developed by AKR Corporindo
2. Services & Logistics: A range of logistics services, and Pelindo through their subsidiaries BKMS and BJTI.
including storage tank and warehouse rental, packing
services, loading and unloading, and transportation
services. These services mainly cater to liquid and solid
chemical products in Indonesia, as well as petroleum.

Total and Contribution of Operating Segments to Consolidated Sales and Revenue

in billions of Rupiah

2023 2022 Increase (Decrease)

Description Contribution Contribution Changes
Total Total Total
(%) (%) (%)

Trade and distribution 38,213 91% 44,698 94% (6,485) -15%

Logistics services 994 2% 893 2% 101 11%

Manufacturer 558 1% 800 2% (242) -30%

Industrial estate 2,323 6% 1,149 2% 1,173 102%

Total consolidated
42,087 100% 47,540 100% (5,453) -11%
sales and revenue

Performance of Each Business Segment

Trade & Distribution

In this segment, the Company emphasizes 2 (two) main products, namely Petroleum Oil (BBM) and basic chemicals.

Product Revenue of Trading & Distribution Segment

in Bilion Rupiah

36,327
31,869

18,953
Petroleum
Basic Chemical
8,371

6,344
4,759

2021 2022 2023

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Petroleum Oil In addressing variations in petroleum prices and in

alignment with government directives mandating the use
The Company only carries out business activities in the of biodiesel across industrial and transportation sectors to
distribution sector. Therefore, there is no production data bolster trade balance and support the local Crude Palm
that can be reported. Oil (CPO) industry, AKR played a role in the achievement
of the B35 program, which involved blending diesel with
Petroleum distribution is generally divided into: alternative petroleums, contributing to its success.
1. Non-subsidized biodiesel and other petroleum products
for industrial customers; For 11 consecutive years, AKR has earned the government’s
2. Subsidized biodiesel for retail customers with quotas trust to distribute specific types of subsidized petroleum.
allocated by the Downstream Oil and Gas Regulatory Between 2018 and 2022, the Company was designated a
Agency (BPH Migas); P3JBT agent by BPH Migas. These outlets are equipped
3. nonsubsidized petroleum and non-petroleum services with a technology system capable of monitoring the
for retail customers; and products from the feeding tank or dispenser nozzle to the
4. Aviation petroleum. customer, a digital monitoring system utilized to oversee
the distribution of subsidized diesel, ensuring it reaches
In response to the requirements of petroleum distribution the intended consumers as per target requirements.
across the Indonesian archipelago, the Company has
established a robust business model with an efficient The Company partnered with bp Global to form a joint
mechanism to tackle economic and geopolitical venture (JV) aimed at building an nonsubsidized retail
challenges. This includes adapting to fluctuations in global petroleum network in Indonesia. At the end of 2023, the
oil prices and currency exchange rates, which are then JV had launched 10 new outlets, bringing the total to 46
adjusted and passed on to customers. Additionally, the gas stations situated in Jabodetabek, Surabaya, Gresik,
Company has implemented a risk management system Malang, and Toll Rest Areas. The majority of these outlets
based on prudent principles and maintains effectiveness are Company Owned and Company Operated (COCO),
in managing net open positions. with a substantial presence of Dealer Owned and Dealer
Operated (DODO) outlets as well.
The Company guarantees that essential petroleum
products are delivered promptly and efficiently to all The Indonesian government is steadfast in its commitment
industrial customers located throughout the Indonesian to phase out low-octane petroleum as part of its Net-
archipelago. A robust logistics network and an extensive Zero target. This is accompanied by a shift in consumer
supply chain, which includes ports, storage terminals, preferences towards higher-grade products. To meet
and transportation facilities equipped with IT monitoring market demands, AKR, through its joint venture (JV),
systems, play a vital role in facilitating the Company’s offers superior-quality petroleums, while the retail outlets
successful distribution efforts. provide an enhanced customer experience by offering
non-petroleum services such as beverages, mini markets,
vehicle light maintenance facilities, and ample parking
space.

Petroleum Oil Sales

in bilions of Rupiah

36,327
31,869

18,953

2021 2022 2023

Basic Chemical

The Company’s involvement in the basic chemical segment is primarily focused on distribution. As a result, there is
no available data concerning the production of basic chemicals. The Company does play a crucial role in distributing
basic chemicals from international producers within Indonesia, serving as essential materials across multiple industrial
sectors, such as nickel, textiles, chemicals, pulp and paper, consumer goods, fertilizers, processed wood products, food,
pharmaceuticals, alumina, and other industries.

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Basic Chemical Sales

in bilions of Rupiah

8,371

6,344

4,759

2021 2022 2023

In 2023, sales of basic chemicals reached Rp6,344 billion, a drop from the previous year of Rp8,371 billion due to a decrease
in the price of basic chemicals.

Manufacturing Aruki maintains a steadfast commitment to conducting

business operations with a strong focus on environmental
The Company has 1 (one) subsidiary engaged in the sustainability. This commitment is demonstrated through
manufacturing segment, namely PT Arjuna Utama Kimia the adoption and implementation of the ISO9001-2015
(Aruki), a wood adhesive manufacturer in Surabaya. Aruki Quality Management System and the ISO 14001-2004
produces high quality adhesives for the wood and paper Environment Management System.
industry with a total production capacity of 100,000 MT.

Manufacturing Segment Revenue

in billions of Rupiah

800

684

558

2021 2022 2023

Logistic Services The Company offers a range of services including

port handling, customs clearance, cargo loading and
The logistics services sector offers various services to unloading using a Harbor Mobile Crane, storage solutions
external clients at significant ports across Indonesia, (warehousing), truck transportation, and bagging services
encompassing activities such as port operations, at the ports located in Medan, Surabaya, Semarang, and
transportation services, rental of storage tanks and Jakarta (Ciwandan and Priok).
warehouses, and other related services.
PT Jakarta Tank Terminal (JTT), a subsidiary of AKR, offers
The Company’s Logistics Services include the leasing of rental services for petroleum storage tank terminals
tanks for handling liquid bulk commodities such as Crude with a total capacity of 350,000 cubic meters in Tanjung
Palm Oil (CPO) and liquid chemicals, as well as warehouse Priok, Jakarta. JTT is one of Indonesia’s largest private
rentals for storing dry bulk goods like chemicals, sugar, tank terminals, complete with a jetty and subsea pipeline
fertilizers, and animal feed. These rental services are infrastructure.
conducted under long-term contracts with customers.

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Logistics Infrastructure Capacity

The capacity of logistics infrastructure in Indonesia is outlined in the Logistics Infrastructure Network section within the
Introduction of this Annual Report.

Logistics Services Segment Revenue

in billions of Rupiah

75
58

30 280
261
230
639 Others
575
Storage Services
513
Port Operations and Transportations
4,751
3,351

2021 2022 2023

During 2023, the Company generated Rp994 billion in KEK JIIPE Industrial Estate
revenue from the logistics segment, marking a Rp101 billion
or 11% increase compared to the Rp893 billion recorded in Currently, AKR is making investments in the East Java’s
2022, and attributed to a rise in asset utilization rates. Integrated Industrial and Port Estate (JIIPE), to cater
to the logistics requirements and energy solutions of
The performance of each logistics segment is as follows: industrial clients. JIIPE features a deep harbor integrated
Rp639 billion for port operations and transportation, with a sizable industrial estate and benefits from excellent
Rp280 billion for storage services, and Rp75 billion for other connectivity within a rapidly developing province.
segments. Overall, each segment saw a decline compared
to the previous year.

Industrial Estate Revenue (KEK JIIPE Gresik)

in billions of Rupiah

2,323

1,149

539

2021 2022 2023

By the end of 2023, the JIIPE industrial estate achieved logistics centers, and related facilities. This zone is
revenue of Rp2,323 billion, marking a substantial increase linked to a versatile port facilitating both inter-island
compared to Rp1,149 billion in 2022. This revenue was and international trade. Supported by commercial and
distributed as follows: residential zones, it aims to be a key strategic industrial
• Rp2,069 billion from industrial land sales hub in Indonesia and the Asia-Pacific region.
• Rp80 billion from industrial land rental income
• Rp174 billion from utility services (recurring income) Located approximately 24 km from Surabaya, JIIPE holds
significant geo-economic importance due to its potential
From this segment, the Company reported a gross profit to serve as a hub for industrial activities, including export-
of Rp981 billion. import operations and other highly competitive economic
endeavors. JIIPE boasts international standard facilities
JIIPE is an integrated industrial zone located in Gresik, and infrastructure, resulting in more cost-efficient logistics
East Java, covering an area of 3,000 hectares. It includes and enhanced connectivity between domestic and
industrial estates, deep-sea ports, residential zones, international markets.

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56

Through Government Regulation (PP) Number 71 of 2021 stop permit services and fiscal incentives such as reduced
dated June 28, 2021, signed by the President of the Republic income tax and customs duties. Additionally, non-fiscal
of Indonesia, JIIPE was designated as a Technology & incentives such as streamlined goods transportation and
Manufacturing Special Economic Zone and officially flexible employment policies are also part of the benefits
named KEK Gresik JIIPE. Subsequently, on November 20, package.
2022, KEK JIIPE received an operational certificate based
on the Decree of the Chairman of the National Council The designation of JIIPE as a KEK elevates its status as a
for Special Economic Zones (KEK) Number 1 of 2022. This competitive industrial zone capable of meeting industrial
decree was approved by the coordinating minister for demands and supporting government targets to reduce
economy Airlangga Hartarto, who serves as the chairman logistics and operational costs, thereby enhancing
of the National Council. Indonesia’s attractiveness as an investment destination.
As part of the National Strategic Project (PSN), JIIPE is
Following the inauguration of the operational certificate, poised to contribute significantly to the national economy,
JIIPE gained access to the KEK administrative office, which meeting all requirements related to activity location, land
provides various incentives and benefits including one- availability, infrastructure, and more, thus fulfilling its role
as a catalyst for economic growth as a KEK.

Tenants who have joined JIIPE Industrial Estate

Freeport Cooper Smelter Hailiang Copper Foil &

Xinyi Glass Factory AKR Corp-Tank Storage
& PMR Tube Manufacturer

Nippon Sari Roti Bread Clariant Specialty

Unichem Salt Factory Fertilizer Inti Tech Fertilizer
Factory Chemical

Cahaya Maju Lestari Bank Indonesia Cash

Adhimix Precast Waskita Beton-Precast
Castor Oil Depot & Data Centre

Other tenant:

Sumberbaja Sejati Light

Pangansari Utama-Food Tirtamas-Warehouse BJTI-Port Services
Steel Manufacturer

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Referring to PP No. 7/2021 regarding the designation Additionally, JIIPE has implemented Rooftop Solar
as a Special Economic Zone, JIIPE implements clusters Photovoltaic Systems (PLTS). This enables a saving of
based on tenant operational activities. As of December 483,917 kWh of energy annually and reduction of CO2
31, 2023, a total of 24 projects have been undertaken. One emissions by 451,978 kg per year, equivalent to planting
notable ongoing project is the natural gas project aimed at 5,671 trees over 10 years and saving 126,236 liters of
supplying to tenants. The potential surplus capacity from gasoline.
this project can be leveraged to support the gas pipeline
network in East Java. This initiative is a collaboration 2. Water Management:
between the Company and BP GAS & Power Investments JIIPE employs a water management system that utilizes
Limited, with active operation expected to commence in Sea Water Reverse Osmosis (SWRO) desalination
2027 to coincide with the launch of numerous projects technology with a capacity of 2,400 cubic meters per
requiring substantial gas consumption in JIIPE. day, designed to meet the industrial water supply
requirements within the JIIPE area.
Due to its connectivity and numerous advantages, JIIPE
has effectively attracted a significant number of investors, 3. Wastewater Management:
both domestic and international. In 2023 alone, 91 hectares In 2023, wastewater in the JIIPE area was managed
of land were sold, bringing the total accumulated land sold through a treatment plant with an average capacity
and leased to 403 hectares. of 2,500 cubic meters per day. The facility utilizes Bio
Reactor Membrane technology, ensuring that liquid
Utilities waste meets safety and quality standards in accordance
There are independent utility facilities in place to support with government regulations while minimizing land
the operations of JIIPE tenant companies. These facilities use.
include power generation, clean water supply, waste
management systems, gas pipeline connections, and Subsequently, the treated effluent undergoes
telecommunication infrastructure equipped with fiber reprocessing in Ultra Filtration and Reverse Osmosis
optic networks. units. This process aims to produce clean water for
1. Power Generation: tenants within the area while minimizing the reliance
JIIPE holds a license to generate and distribute 515 MW on natural resources for water extraction.
of electricity directly to its tenants. As of 2023, JIIPE
operates a 23 MW gas-fired power plant, supported by 4. Internet & Communication:
a gas pipeline network from Perusahaan Gas Negara as Through collaborations with telecommunications
the gas supplier for delivering natural gas to the area. service providers in Indonesia, the Company offers
fibre optic-based telecommunication networks
JIIPE also signed an agreement with PLN, where PLN and broadband internet services for the JIIPE area.
will supply high voltage electricity up to 170 Mega Volt Additionally, to prioritize safety, JIIPE maintains a
Amperes. dedicated firefighting team that operates 24 hours a
day, 365 days a year.

Gas Powered Power Plant with Water Treatment & Waste Water Deep Sea Port with a Depth of
Rooftop Solar Panel Treatment Plant up to -16 LWS

JIIPE’s Unique Connectivity Mode general cargo handling, container yard operations,
JIIPE’s connectivity model is designed to accommodate multipurpose services, support for the fishing industry,
Indonesia’s archipelagic nature, seamlessly connected to liquid and bulk cargo handling, a bonded logistics center,
sea, land, and air transportation routes. The port operations and offshore maintenance facilities.
are managed by PT Berlian Manyar Sejahtera (BMS), which
holds a concession from the Ministry of Transportation As of 2023, the national road network to JIIPE is in its final
to provide port services at the Manyar Terminal in Gresik stages of preparation and connectivity construction. The
Port, East Java until 2094. The services offered by BMS railroad is currently undergoing further studies before it
include a wide range of port and logistics services such as can be implemented.
freight handling, container services, vehicle transportation,

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HUMAN
RESOURCES
By the end of 2023, the total number of Company and subsidiary employees reached 2,813, a decrease of 828 employees
or 1.46% compared to 2,645 in December 2022. Detailed information regarding the number of employees in the last two
years is as follows:

Based on Position
2023 2022
Position
Amount % Amount %

Board of Commissioners 3 0.1% 3 0.1%

Board of Directors 7 0.2% 7 0.3%

Officials at the Commissioner Level 7 0.2% 8 0.3%

Officials at the Director Level 25 0.9% 32 1.2%

General Manager – Senior Manager 59 2.1% 51 1.9%

Manager 137 4.9% 123 4.7%

Assistant Manager 148 5.3% 145 5.5%

Supervisor - Staff 937 33.3% 776 29.3%

Operator 1,490 53.0% 1,500 56.7%

Total 2,813 100.0% 2,645 100.0%

Based on Gender
2023 2022
Gender
Amount % Amount %

Male 2,394 85.1% 2,269 85.8%

Female 419 14.9% 376 14.2%

Total 2,813 100.0% 2,645 100.0%

Based on Age
2023 2022
Age
Amount % Amount %

>56 years 65 2.3% 70 2.6%

47-55 years 359 12.8% 326 12.3%

40-46 years 502 17.8% 512 19.4%

33-39 years 687 24.4% 678 25.6%

26-32 years 776 27.6% 732 27.7%

<25 years 424 15.1% 327 12.4%

Total 2,813 100.0% 2,645 100.0%

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Based on Educational Level

2023 2022
Educational Level
Amount % Amount %

Doctoral 4 0.1% 2 0.1%

Masters 100 3.6% 109 4.1%

Bachelors 912 32.4% 887 33.5%

Diploma 202 7.2% 352 13.3%

Senior High School 1,334 47.4% 1,215 45.9%

Junior High School 82 2.9% 372 2.7%

Elementary School 8 0.3% 8 0.3%

Total 2,813 100.0% 2,645 100.0%

Berdasarkan Status Kepegawaian

2023 2022
Employment Status
Amount % Amount %

Permanent Employees 2,011 71.5% 1,933 73.1%

Contracted Employees 802 28.5% 712 26.9%

Total 2,813 100.0% 2,645 100.0%

Employee Performance Evaluation

Employee performance evaluation is conducted based on Final evaluation is conducted at the end of the year, where
the Key Performance Indicators (KPIs) established at the employee performance is objectively measured and
beginning of the year for each employee. The performance assessed. The results of this evaluation serve as the basis
monitoring process is carried out periodically by direct for decision-making regarding reward programs, career
supervisors to assess the achievement of the set KPIs. development, training, and retention strategies to achieve
the Company’s goals.

Setting Work Targets (KPIs)

All employees are required to be aware of Individual Work Targets,
encompassing both Performance and Competence or other assigned
priorities.

Performance Monitoring (by Supervisor)

Supervisors regularly monitor all subordinates’ tasks to measure
performance achievements in line with the pre-established KPIs

Performance Evaluation
The final performance results are evaluated at the end of the year to
obtain an assessment of each employee’s work for further processing by
HR.

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INFORMATION
TECHNOLOGY
GOVERNANCE

AKR recognizes that Information Technology (IT) The Company is committed to utilizing and developing
management plays a strategic role in supporting the IT to be more productive, competitive, and adaptable
smoothness and effectiveness of business operations. to changes and challenges in business development,
Optimizing the implementation of IT in business processes thereby accelerating sustainable business growth.
not only supports cost leadership but also drives more Through the implementation of IT, the Company ensures
effective and efficient business sustainability. that operations run more efficiently, accurately, and are
oriented towards a quick response system. In general, the
Company encourages the implementation of IT strategies
that adopt relevant technological advancements

Collaboration Simplification

Assurance &
Automation
Governance

In the development of IT systems, AKR is based on 4 (four) 3. Simplification: Streamlining processes to eliminate non-
values, as follows: value-added tasks and unnecessary or excessive tasks.
1. Collaboration: Developing productivity across business 4. Assurance & Governance: Ensuring availability,
processes. Key aspect: Mobility traceability, security, and alignment with overall
2. Automation: Simplifying workflows and shortening business and business objectives.
processing periods.

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Investment and Socialization of IT

As part of efforts to optimize the utilization of IT for the Company, specific investments are needed to maximize the role
of IT. IT investment is made by increasing the capacity of hardware and software used by the Company. Additionally,
investment is also made by enhancing the capacity of employees managing the Company’s IT.

CRM Application
Customer Budget
Customer Discount Simulation
Sales Order

Ordering Process Distribution Planning System

Daily Forecasting
Monthly Forecasting
Daily Planning
AKR Enterprise Resouce Tariff Management
Planning Fleet Management System

MOS (Mobile Ordering System) Queueing System

Registration Time
Weighbridge Time
Loading/Unloading Time
Covering TIme

Shipment Process

Reporting

In carrying out IT initiatives, the Company conducts various socialization activities on cybersecurity awareness embedded
in the new employee orientation program. Throughout 2023, the Company conducted various IT initiative activities.
Socialization has been conducted 30 times with 132 participants.

Performance Achievement in Implementing IT in 2023

Performance achievements in implementing 3. Simplification: Upgrading existing implemented
Collaboration, Automation, Simplification, and Assurance applications and systems to simplify ongoing processes,
in line with the IT Strategy throughout 2023 include: such as enhancing the functionality and capabilities
1. Collaboration: Focusing on the Company’s interests of Enterprise Resource Planning (ERP), Distribution
both internally within IT and externally, through regular Planning, Customer Relationship Management (CRM),
meetings and updates with Division Heads, ensuring and others.
that needs for automation and simplification can be 4. Assurance: Continuously ensuring IT Governance and
efficiently and effectively addressed. Assurance implementation by monitoring IT security
2. Automation: Transforming manual tasks into and providing education to staff actively involved in
applications and systems to enhance the Company’s maintaining IT security.
performance and support operations, such as the
implementation of SCADA in the blending and filling
processes at AKR terminals.

Future IT Development Plans

AKR is committed to continuously developing IT as part of 1. Data Analytics: Optimizing data usage for analysis
the Company’s strategy to create more effective, efficient, rather than just reporting, allowing the Company to
and transparent operations. Based on the framework make more accurate decisions.
of the IT development vision and core values such as 2. Improving SD WAN performance to enhance network
Collaboration, Automation, Simplification, and Assurance and connection performance.
& Governance, the company has outlined strategic IT plans 3. Enhancing the skills and knowledge of IT resources to
for 2024 focusing on: adopt and implement technology solutions more easily
and quickly.

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CORPORATE GOVERNANCE ACHIEVEMENT

84.45
Based on the 2020 Annual Report
Rated as “Good” or Level 3 (80-90)
Scores significantly above the BigCap100 average score
points (73.63) and mid cap (65.38)

Scores for each principle (in points)

8.09 31.38
Shareholder Rights Board of Commissioners’ Responsibilities

7.69 23.43
Equal Treatment of Shareholders Disclosure and Transparency

13.84 26.0
Stakeholder Role ESG Sustainalytics as of September 2023
maintained at Medium Risk

ESG SnP Global as of November 2023 increased to 34, above industry average

AKR continuous to be a constituent of the following stock/ESG indices

Index LQ 45 IDX 30 Investor 33 Bisnis 27

ESG Quality 45 IDX KEHATI ESG Sector Leaders IDX KEHATI IDX LQ45 Low Carbon Leaders

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AKR consistently promotes culture, strengthening b. Approval of the plan for the use of net profit for the
corporate governance to provide sustainable added value fiscal year ending on December 31, 2022.
for stakeholders including shareholders, employees, c. Appointment of an Independent Public Accountant
consumers, suppliers, business partners, regulators, and Firm to audit the Company’s books for the fiscal year
the public. In order to realise best, AKR continues to make ending on December 31, 2023.
improvements and refinements in structures, processes, d. Changes in the composition of the Board of
and mechanisms. Periodically, the Company reviews the Commissioners.
compliance of corporate governance implementation with e. Determination of honorarium and other allowances
applicable international and national standards including for members of the Board of Commissioners, as well
the ASEAN Corporate Governance Scorecard, POJK No. 21/ as salaries and other allowances for the Directors.
POJK.04/2015, and the General Guidelines for Corporate 2. Distributed dividends three times on May 24, 2023, for
Governance in Indonesia (PUGKI) for 2021 issued by the the Final Dividend 2022 dividends, on August 16, 2023,
National Committee on Governance Policy (KNKG). for the 2023 interim dividends I, and on November 15,
2023, for the second interim dividends of 2023.
The Company instills good corporate governance among 3. Issued a policy on reporting ownership of AKRA shares
Company personnel through socialization, education, and and any changes held by the Directors and members of
training. The Company also promotes the integration of the Board of Commissioners on September 8, 2023. This
corporate governance as part of the culture and operational policy is used to strengthen insider trading prevention
activities, including interactions with external parties. within the Company.
4. Issued a Human Rights policy to protect all employees.
Corporate governance activities carried out in 2023 are as 5. Issued a policy on health, safety, security, and
follows: environment to strengthen commitment to
1. Conducted the Annual General Meeting on April 28, environmental and occupational safety issues.
2023, which approved several matters as follows: 6. Updated the Company’s Code of Ethics in accordance
a. Approval and ratification of the Board of Directors’ with the latest governance guidelines and sustainability.
Report on the Company’s performance and 7. Conducted a socialization of the latest code of ethics to
financial administration for the fiscal year ending on all AKR BU employees, including branch offices, followed
December 31, 2022. by the signing of integrity pacts by 1,654 employees.

COMMITMENT TO CORPORATE
GOVERNANCE IMPLEMENTATION
In order to maintain business continuity and operations, AKR ensures that every Personnel performs its duties
the Company strengthens its commitment to improving and functions in accordance with the Company’s policies,
and implementing quality good corporate governance and applicable laws and regulations. The Company
standards. AKR realizes that this drives excellent is committed to ensuring that the implementation
performance, protecting interests, and adds value to all of governance is in line with the standards that apply
stakeholders. generally in the business world.

Principles of Corporate Governance Implementation

The principles set by the Company refer to the General As an effort to maintain sustainability, the implementation
Guidelines for Corporate Governance in Indonesia of corporate governance is updated and adjusted to
(PUGKI) for 2021. PUGKI 2021 is an update from PUGKI reflect the Company’s condition. The implementation of
2019 and a manifestation of the pillars of Ethical Behavior, corporate governance pillars at AKR is described as follows:
Accountability, Transparency, and Sustainability.

Ethical Behavior Accountability Transparency Sustainability

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Principle Explanation of Basic Principles Fundamental Implementation Guidelines

Ethical Behavior Corporations prioritize honesty, treat all • Access to information and opportunities for
parties with respect, fulfill commitments, stakeholders to provide input and express
and consistently build and maintains moral opinions for the benefit of the Company are
values and trust. This considers the interests provided.
of shareholders and other stakeholders based • The Company provides fair and equitable
on the principles of fairness and equality and is treatment to stakeholders according to the
managed independently so that each corporate benefits and contributions they provide.
organ does not dominate and cannot be • The Company also provides equal
intervened by others. opportunities in recruitment and career
advancement without discrimination based
on ethnicity, religion, gender, and physical
condition.

Accountability Corporations can be held accountable for their The Company can account for its performance in
performance reasonably and transparent. For a transparent and fair manner throught propper
this reason, companies must be managed management of the Company in accorandce
properly, measurably, and in line with corporate with the interest of the Company while taking
interests while also taking into account the into account the interest of shareholders and
interests of shareholders and stakeholders. others stakeholders.
Accountability is a necessary prerequisite to
achieving sustainable performance.

Transparency To maintain objectivity in conducting business, • The Company provides material and relevant
corporations provide material and relevant information in an easily accessible and
information in an easily accessible and understandable manner for stakeholders.
understandable manner for stakeholders. • The Company discloses matters required
Corporations take the initiative to disclose by regulations and important issues for
not only issues required by regulations but shareholders and stakeholders.
also matters crucial for decision-making by
shareholders, creditors, and other stakeholders.

Sustainability Corporation should comply with regulations The Company complies with regulations and
and be committed to fulfilling responsibilities fulfills responsibilities towards society and the
towards society and the environment to environment, thereby ensuring long-term
contribute to sustainable development through business sustainability and recognition as a
collaboration with all relevant stakeholders good corporate citizen.
to enhance their lives in a manner aligned
with business interests and the Sustainable
Development Agenda.

In addition to these pillars, the Company also implements 3. Working relationship between the Board of Directors
8 (eight) principles of Corporate Governance, including: and Board of Commissioners.
1. Roles and responsibilities of the Board of Directors and 4. Ethical behavior.
Board of Commissioners. 5. Risk management, internal control, and compliance.
2. Composition and remuneration of the Board of 6. Disclosure and transparency.
Directors and Board of Commissioners. 7. Shareholder rights.
8. Stakeholder rights.

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ASSESSMENT OF CORPORATE
GOVERNANCE IMPLEMENTATION

Self-Assessment
AKR conducts self-assessment of corporate governance The Corporate Secretary and Investor Relations gather
implementation in accordance with the provisions of relevant data and information to conduct self-assessment
Financial Services Authority Regulation (POJK) No. 21/ on the adequacy and effectiveness of corporate
POJK.04/2015 regarding the Implementation of Guidelines governance implementation. Various findings serve as
for Public Company Governance. The assessment is carried benchmarks for AKR to follow up on recommendations to
out systematically and comprehensively through various enhance governance quality within the Company.
aspects, namely structure, process, and outcomes.
1. Governance Structure AKR reviews existing findings and their follow-ups from
The Company evaluates the adequacy of the governance internal and external parties, including the Board of
structure and infrastructure in producing outcomes Commissioners, Board of Directors, Corporate Secretary,
that meet the expectations of stakeholders. Human Resources, Internal Audit, and ESG Committee, as
2. Governance Process well as various findings from shareholders, rating agencies,
The Company assesses the effectiveness implementing the community, media, etc.
governance principles supported by adequate structure
and infrastructure to produce outcomes that meet The Company receives recommendations and follow-ups
stakeholder expectations. from several stakeholders regarding the implementation
3. Governance Outcomes of corporate governance, including:
The Company evaluates the quality of governance
outcomes to determine whether the governance
structure and process have been executed properly and
meet stakeholder expectations.

Recommendations Follow-up

Building awareness among AKR personnel about 1. Renewing the Company’s Code of Ethics and
corporate governance and the importance of socializing it to all AKR stakeholders;
sustainability values. 2. Creating a Human Rights Policy and socializing it;
3. Formulating Health, Safety, Security, and
Environmental policies, then socializing them.

Ensuring reporting of share ownership by Directors/ Creating a stock ownership reporting policy to
Board of Commissioners in compliance with applicable strengthen insider trading prevention.
regulations.

Motivating all AKR personnel to engage in monitoring Socializing a whistleblowing system that can be used by
the implementation of governance within the Company. all Company stakeholders.

Ensuring Directors and Board of Commissioners always Providing updates to the Board of Directors and Board
prioritize corporate governance principles. of Commissioners on the latest governance guidelines
and sustainability standards referenced by investors/
shareholders.

External Assessment
The ASEAN Corporate Governance Scorecard (ACGS) is a external parties to encourage objectivity in the quality of
standard for assessing corporate governance practices corporate governance implementation.
based on the principles of the Organization for Economic
Cooperation and Development (OECD) Corporate The latest ASEAN CG Scorecard assessment consists of 4
Governance issued by the ASEAN Capital Market (four) evaluation aspects, namely:
Forum. AKR conducts internal assessments of corporate 1. Shareholder rights;
governance practices based on ACGS criteria and includes 2. Equal treatment among shareholders;

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66

3. Shareholder roles;
4. Information disclosure and transparency;
5. Responsibilities of the Board of Commissioners and Directors.
AKR obtained a score of 84.45 for the assessment of the 2020 Annual Report and the Company’s website. This ACGS
assessment was obtained from the Indonesian Institute for Corporate Directorship (IICD) and PT RSM Indonesia Consultant.

The results of the IICD assessment are as follows:

Parameter Score

Shareholder rights 8.09

Equal treatment among shareholders 7.69

Shareholder roles 13.84

Information disclosure and transparency 23.43

Responsibilities of the Board of Commissioners and Directors 31.38

Total Score 84.45 (Level 3: Good)

Based on assessments, the implementation of corporate The company continues to strengthen its commitment
governance has exceeded compliance with minimum to implementing corporate governance and strives to
requirements and adopted international standards meet best practices in corporate governance principles
indicated by ACGS. AKR’s total score is far above the according to the ASEAN CG Scorecard. The comprehensive
average score of BigCap100 at 73.63 and mid-cap at 65.38 results of the ACGS assessment can be viewed and
for ACGS 2021. downloaded directly at https://www.akr.co.id/gcg/asean-
scorecard.

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

AKR understands that every business activity it conducts As envisioned in the Company’s Mission, AKR has a noble
must have ethical responsibility and be based on purpose; to provide maximum added value and benefits to
applicable regulations. Therefore, sustainable business stakeholders. This Mission forms the spirit and identity that
development must begin by creating a balance between is carried in building economic, social, and environmental
the needs of shareholders, the needs of the community, performance for the sake of sustainable business
and environmental needs around operational areas. On continuity.
the journey towards sustainability, AKR constantly strives
to build a strong foundation of ethical behavior in every
activity, both in production and operations.

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For AKR, the commitment to sustainability is an ambition company is a commitment that must always be fought
that can only be achieved through a measured and directed for and realized through strong spirit and optimism for the
long-term strategy. AKR must ensure that the business future.
activities it manages will have a sustainable impact on
stakeholders now and in the future. The challenge for AKR
is setting the right goals, plans, ambitions, and targets Embedding Sustainability Across AKR’s
in every business line, from logistics and distribution to Business Lines
industrial areas and the development and management
of Special Economic Zones (SEZ). As a concrete effort to achieve sustainability, the Company
has created a committee responsible for overseeing the
The key to addressing this challenge is to go beyond formulation and implementation of matters related to
business as usual. As a global corporate citizen, AKR must economic, environmental, and social performance, namely
maximize efforts to achieve a balance between business the ESG Committee and ESG Task Force AKR. Broadly
growth, awareness of the environment, and the progress speaking, the ESG Committee and ESG Task Force AKR
of the surrounding community. This is a common goal ensure the formulation of sustainability strategy policies
with the global community, outlined in the Sustainable to support the implementation of ESG in accordance with
Development Goals (SDGs), and Sustainable Development applicable industry standards.
is the agenda of the Indonesian government. To achieve this, the ESG Committee and ESG Task
Force AKR have formulated AKR Sustainability House:
As a company operating in the energy supply chain PROGRESSING WITH PURPOSE, which includes 4 main
industry in Indonesia, AKR has mapped SDG targets that pillars, namely:
align with each business activity. Being a sustainable

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 and
pillar

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

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

Model 2. Health & Safety development programs 2. Business Ethics

2. Strong financial 3. Employee Engagement, 2. Involving Local Suppliers 3. Compliance to Law and
Action Areas/

Fundamentals Diversity & Inclusion 3. Providing opportunities for Regulations

3. Operational Excellence & 4. Learning & Development the local communities
Utilization of Technology
4. Customer Engagement &
Satisfaction
5. Management of
Environmental Footprints

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68

What We Want To Achieve Where We Are Now

Pillar
(AKR Horizon 2030) (2023 Achievement)

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 Emission intensity 0.02 tons CO2e / Rp Emission intensity 0.02 tons CO2e / Rp million
Achieved
million Gross Profit Gross Profit

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

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Our Business Portfolio 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
adaptations are always needed amid the challenges In conducting business, AKR is not only committed to
and complexities. To continue sustainable growth, the realizing positive economic performance but also to
Company has undertaken several efforts, such as: providing broad benefits to the surrounding community,
• Building operational excellence through technology. primarily in improving their welfare. Therefore, AKR provides
• Adapting and meeting the evolving needs of customers job opportunities for people in surrounding operational
and stakeholders. This includes not only facilitating the areas, including entrusting them with positions in senior
logistics supply chain for essential products but also management. Additionally, The Company uses services
supporting manufacturing growth through the JIIPE and materials purchased from local suppliers, contributing
Special Economic Zone. to the increase in Domestic Component Levels (TKDN).

AKR’s current orientation is focused on ensuring that AKR seeks to implement various CSR programs that can
the Company adds value to stakeholders. This involves provide tangible benefits to the surrounding community.
meeting the needs of industrial customers, acting as an In the planning process, the Company first identifies
extension of suppliers, conducting business in accordance needs through two-way communication with the
with regulations, and providing profits and benefits to community to ensure that the implemented programs
shareholders and employees. are targeted, sustainable, and effective. To maximize the
performance of AKR’s CSR, continuous innovation brings
In addition, to build a strong and resilient business new breakthroughs in the programs.
portfolio, environmental aspects are equally important.
In practice, AKR endeavours to ensure that operational Our Conduct
activities have no negative impacts or risks to activities and
the lives of the local community. Therefore, the Company Realizing AKR’s sustainability values begins with
has developed strategies and initiated efforts to transition a commitment to strengthening Good Corporate
to clean and environmentally friendly energy, creating a Governance (GCG). Principles of transparency,
pollution-free, noise-free work environment, minimizing accountability, responsibility, independence, and fairness
the risk of fire, and actively participating in addressing the are prioritized and serve as the main foundation for work
impacts of climate change. across all business units. Openness is emphasized in
decision-making processes and provides relevant material
Our People information.

AKR acknowledges that in embarking on the long journey AKR upholds ethical behavior and legal compliance
towards sustainability, employees are the most important in all activities. Therefore, the clarity of the function,
factor that will determine the success or failure of the implementation, and accountability of Company organs
Company in achieving set values. Targets and objectives is in accordance with the regulations in Indonesia. To
can only be maximized when supported by competent ensure various ESG initiatives, the ESG Committee has
and quality Human Resources (HR). Therefore, AKR is been formed, which is responsible for determining the
committed to protecting labor practices through anti- Company’s ESG strategy, providing recommendations,
forced labor policies, ensuring freedom of association, coordinating, reporting, and monitoring.
and adhering to values and practices of diversity, gender
equality, human rights, and labor rights. AKR is committed not only to treating business ethics and
compliance as obligations but also to making them part
AKR also works to create a safe, healthy, and comfortable of the habits and culture of all Company stakeholders.
working environment by applying the highest standards in Therefore, business ethics and compliance have become
Occupational Health and Safety (OHS). This commitment guidelines for behavior and references for all employees in
has the ultimate goal of achieving zero accidents. AKR sustainably applying the Company’s values.
aims to create a safety culture across operational areas,
which, in turn, can improve productivity, performance, and
the Company’s success. This is demonstrated through an

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Stakeholder Engagement

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

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 (GMS), 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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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:

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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SUSTAINABILITY PERFORMANCE
OVERVIEW 2023

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 B35 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 billion
million Km

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74

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

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Summary Report

2023

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

(021) 5311110
www.akr.co.id