Our approach to corporate governance is premised on the understanding that mining is a highly regulated industry. Therefore, it requires checks and balances to ensure the company conducts itself in a fair, accountable, responsible, and transparent manner.

We view corporate governance not as an academic exercise or something superfluous to just look good. We view it as a dynamic exercise that will never really stop; an exercise of continually improving and adapting. We believe there is no "one size fits all" solution when it comes to corporate governance. For our part we believe our corporate governance standards are good. We spent three years operating the group of Adaro companies under the supervision of the "governing council", which was made up of members from the controlling shareholders and the international consortium, who together took over what today is Adaro Energy by way of a leveraged buyout in 2005. This council, in addition to the requirement of the LBO banks, required a high level of corporate governance.

One of the unique characteristics of Adaro Energy, when it comes to the ownership of most Indonesian listed companies, is that we are not owned and controlled by a single family, nor the government. We are controlled by a group of five families and individuals who do not have outright control. Given each party is operating individually there is a natural system of checks and balances in place, and decisions are made with great consideration and after much debate. Additionally, this group of controlling shareholders is made up of the founders and past executives of PT Astra International Tbk, one of Indonesia's most respected and well governed corporations.

During 2008 we became a publicly listed company, which has forced us to raise our level of corporate governance, especially in terms of disclosure and accountability. We are going to continually improve our corporate governance in the future, so as to not only do the right thing by our stakeholders, but also to ensure long term and successful operations.