The disclosure policy was developed in 2008 and subsequently a disclosure team was formed, comprising of senior level managers from Investor Relations, Corporate Secretary, Legal, Operations and Marketing. Although the policy was recently formalized at end of 2009 after undergoing a thorough review by the BOD and legal counsel, it has been put to use by Adaro Energy since its listing in mid 2008 and has provided clear guidance on the disclosure of material information and regular disclosure activities.
The launching of the disclosure policy reaffirmed Adaro Energy’s commitment to provide timely, orderly, consistent and credible information in line with prevailing regulatory requirements to enable orderly behaviour in the market.
Adaro Energy believes its disclosure activities in support of corporate governance went beyond what is required by the market regulations in 2009. Examples of progress made include a regular Adaro Energy Quarterly Activities Report, presentations and meetings during non-deal roadshows and investor forums, and the disclosure of fair and balanced information in a symmetrical way to the capital market.
Adaro Energy IR Code of Ethics
As a member of Adaro Energy’s Investor Relations department, either directly or in a supporting role, I will:
Honor my obligation to serve the interest of shareholders and other stakeholders.
Maintain my integrity and credibility by practicing investor relations in accordance with the highest legal and ethical standards.
Avoid even the appearance of professional impropriety in the conduct of my investor relations responsibilities.
Recognize that the integrity of the capital markets is based on transparency of credible financial and non-financial corporate information, and that being and appearing transparent, by disseminating timely and balanced materia information in such a way as to avoid asymmetry, will lower the cost of capital, improve the company’s credibility and reputation and so improve corporate performance and the chances of achieving Adaro Energy’s goals.
In light of point three (3) above, I will to the best of my ability and knowledge work to ensure that Adaro Energy fully and fairly discloses this important information.
Provide analysts, institutional and individual investors and the media fair access to corporate information.
Discharge my responsibilities completely and competently by keeping myself abreast of the affairs of Adaro Energy as well as the laws and regulations affecting the practice of investor relations
Maintain the confidentiality of information acquired in the course of my work for Adaro Energy.
Not use confidential information acquired in the course of my work for my personal advantage nor for the advantage of related parties.
Exercise independent professional judgment in the conduct of my duties and responsibilities on behalf of Adaro Energy.
Avoid any professional/business relationships that might affect, or be perceived to potentially affect, my ethical practice of A Disclosure Team was formed in 2008, made up of senior level managers from Investor Relations, the Corporate Secretary, Legal, Operations and Marketing. The team is tasked with the responsibility of helping Adaro Energy maintain high levels of transparency without jeopardizing the commercial or legal interests of the firm.
Results of Adaro Energy's Annual Perception Survey
In January 2010, we conducted an Annual Perception Survey on Adaro to see what people think about us as a company. 118 respondents have participated and answered a number of questions about Adaro. There have been a number of interesting facts that have emerged from the survey. To start with, we found that majority or 35% of respondents who took the survey were investment analysts. Moreover, our company website proves to be the most preferred resource for people to collect information about Adaro, with the company reports as well as internet to be the most preferred sources to gather data about the firm.
The findings in this survey also suggest that the two most important considerations in making a decision to invest in a company are its fundamentals as well as the firm's management and planning. According to the results of the survey, it is interesting to note that top three reasons of why one would invest in Adaro are: the prospect of growth offered by the company, the mining industry/sector which Adaro is positioned in and lastly due to the solid fundamentals of the company.
The importance of good corporate governance was highlighted in this survey as 90% of respondents believe that every effort should be made to meet international standards of good corporate governance.
When confronted with questions of transparency and disclosure, respondents in this survey paint a conflicting picture. In general, respondents are most satisfied with the overall level of transparency of Adaro, the quality of Investor Relations replies and the company's reporting standards.
However, respondents of the survey also noted that Adaro can improve focusing its efforts to improve investor relations on better quality disclosures, followed by better conveyance of corporate strategy and objectives, as well as better address of specific financials.
Several comments from the Annual Perception Survey
What is your image of Adaro?
Good management and transparent compared to other Indonesian companies. Good perception in credit investors.
Great management and good corporate governance.
Concern on environmental issues and good corporate governance practices.
Coal mining firm with Astra's style of management.
If you could tell Adaro's management one thing, what would that be?
Secure consistent and growing revenue and profit, manage cost, and promote envirocoal.
Please distribute more dividends.
Please focus on corporate governance and protection of minority interests.
More information perhaps about your expansion plan as to where you think extra coal sales could come from.
Any misperceptions you feel exist about Adaro?
Seen as a family business instead of professionally run organization.
Who do you think are Adaro's main peers?
BUMI, Bukit Asam, Indo Tambang Raya, Banpu, Indika Energy, Yangzhou coal, China Coal, Bayan Resources, Aneka Tambang, BHP Billiton.
In what ways does Adaro differentiate from its competitors? What strengths does Adaro have which they do not?
Adaro Energy is an integrated energy company, where the company does not only conduct coal mining, but also conducts other efforts that support their main business activity. Through this way, Adaro have been able to be more efficient and effective.
Transparency of corporate actions and growth strategy.