Adaro Land is a strategic land asset and infrastructure company that supports the growth and operational sustainability of the Adaro Group’s businesses. Adaro Land’s tasks include management of land assets, properties and other assets, development and construction of supporting infrastructures, agribusiness, rehabilitation and reclamation of land, and forestry management.
Adaro Land, through PT Adaro Persada Mandiri (APM), has six business segments, namely land management services, management of land and property assets, infrastructure development, agribusiness management, management of land assets for plantation, and land reclamation, rehabilitation and forestry. Each of this business segments strives to improve the quality of services provided for the Adaro Group as part of APM’s transformation into becoming a strategic support pillar for the operations of Adaro Group. In the process, APM conducted several activities in 2019 which included the followings:
- Addition of the types of leased and managed assets comprising of land, buildings, and support equipment for mining operations;
- Facility management services for offices used by the Adaro Group;
- Professional construction project management services for both mining and non-mining sectors;
- Extension of fertilizer products and integration of agribusiness processes with reclamation projects; and
- Improvement of the management quality and performance of forestry assets and projects through transformation of governance and organizational structure.
APM through its Land and Property Division (LAPD) manages Regional Integrated Support Area (RISA), an integrated compound located in Paringin, Balangan district. RISA will stand on an area of 150 ha, comprising office complex, workshop, and warehouse, mainly for supporting the mining operations of PT Adaro Indonesia (AI) and Balangan Coal Companies (BCC).
As at the end of 2019, a total of 44.7 ha of RISA had been constructed and ready to be utilized, with nine companies occupying a total area of 37.6 ha. In addition, the Land and Property Division also manages assets and office facilities such as Graha Saptaindra (GSI) building, Cyber 2 Tower 23rd, 24th, 25th, 26th and 34th in South Jakarta, and the office and employee dormitory of PT Adaro Indonesia in Banjarbaru.
APM through the Infrastructure Development (INDEV) Division provides project management services for mining and non-mining infrastructure development. In 2019, INDEV served several projects, such as the building of a bridge on AI’s coal hauling road in Tabalong, an employee dormitory of PT Bhimasena Power Indonesia (BPI) in Batang, Central Java, the Workshop Fuel Transporter for supporting AI’s operations, and AI’s induction office at Simpang Wara. All these projects will be completed in 2020. Besides undertaking the infrastructure projects, INDEV also performs regular care and maintenance for the structural sections of the existing infrastructure.
APM through the Land Services Division is responsible for serving all AE’s business units so that the land required for operational activities is available for use without disruptions from either the claims made by the local communities or land licensing problems. The Land Services Division regularly assesses the risk level of land availability for the business units and develops the competency of the land management team of each business unit in such a way that they will be able to effectively provide and secure the physical and legal standing of the land.
APM’s segment for activities in the agribusiness and forestry sectors is served by several subsidiaries established specifically according to the applicable business licensing requirements. Below is the description on these subsidiaries:
PT Hutan Amanah Lestari
One of the key area for development under the Adaro Land pillar is the ecosystem restoration and carbon capture in forest area as an implementation of the Adaro Group’s energy and greenhouse gas policy as well as part of our responsibility for the environment. This activity is conducted through PT Hutan Amanah Lestari (HAL), a holder of business license for utilization of carbon absorption (Izin Usaha Pemanfaatan Penyerapan dan/atau Penyimpanan Karbon (IUP PAN/RAP Karbon)). As one of the largest holders of IUP PAN/RAP Karbon concessions in Indonesia, HAL expects its carbon trading business, once operational, to be its main business.
In 2019 HAL carried out its obligation as an IUP PAN/RAP Karbon holder by, among others, conducting periodic inventory of forest carbon (inventarisasi karbon hutan berkala), to be used as baseline data for carbon trading, prevention of forest fire in collaboration with the Adaro Group’s Forest and Land Fire Control Brigade, and routine patrol over its area to ensure security.
PT Alam Sukses Lestari
PT Alam Sukses Lestari (ASL) is another company under Adaro Land pillar that implements Adaro Group’s energy and greenhouse gas policies as ASL is a holder of business license to use timber product – ecosystem restoration in natural forest (Izin Usaha Pemanfaatan Hasil Hutan Kayu - Restorasi Ekosistem Dalam Hutan Alam (IUPHHKRE)). This permit allows restoration of forest ecosystem to achieve balanced biodiversity.
In 2019, ASL safeguarded its area by conducting routine patrol, and prevention of forest fire in collaboration with the Adaro Group’s Forest and Land Fire Control Brigade.
PT Agri Multi Lestari
PT Agri Multi Lestari (AML) is an agribusiness arm of Adaro Land which aims to provide good quality organic seeds and fertilizers to support reclamation activities of coal mining companies under the Adaro Mining pillar. In addition to supporting post-mining activities, AML also helps to maintain land productivity at pre-mined area.
In 2019, AML focused on its integrated business of area management, livestock and plantation with emphasis on supporting the Adaro Group pre and post-mining activities. AML collaborated with AI for carrying out area management to safeguard unused land in AI’s mining vicinities to reduce the risk of disruption against mining operations. To support AI’s reclamation activities, AML provides solid organic fertilizer from its revegetation projects and liquid organic fertilizer for cattle feed crops.
PT Rehabilitasi Lingkungan Indonesia
As an integrated mining and energy group that upholds the principle of good mining practices, we seek to comply with every obligation stipulated on our licenses or permits. Companies under the Adaro Mining pillar are required to do post-mining reclamation and watershed rehabilitation as stipulated in the borrow-to-use forestry permit, and AI’s CCA. PT Rehabilitasi Lingkungan Indonesia (RLI) is tasked to provide services in watershed rehabilitations and revegetation for mining companies under the Adaro Mining pillar.
In 2019, RLI completed several watershed rehabilitation projects for AI and AMC. In each project, RLI became the contractor providing project management, monitoring and evaluation, as well as planting and maintenance of plants. RLI also carried out revegetation activities at AI, and up until the end of 2019 had completed 106 ha of replantation activities at the Tutupan and Paringin disposal areas, as well as conservation of plants on 60 ha of reclaimed area at Tutupan.