Adaro Land is part of AE’s supporting pillars established to become a strategic land asset and infrastructure company that contributes to 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, rehabilitation and reclamation of land, and forestry management.
Adaro Land’s main customers are its sister companies under the Adaro Group, the majority of which are coal companies or companies with business activities related to coal mining. The positive sentiment on coal in 2018 had encouraged these companies to execute of their business and investment plan and hence brought positive impact to Adaro Land. Adaro Mining, Adaro Power and Adaro Logistics were among the pillars that utilized Adaro Land’s expertise during the year.
With the objective to strengthen its core business and improve its business achievements and sustainability in the medium to long term, in 2018 Adaro Land expanded its business to include six segments from only three segments at the end of 2017. The six business segments are as follows:
- Land management services. Adaro Land provides “total land solutions” for services in the land management sector comprising of, among others, land acquisition, integrated land documentation, and land management consultation in the form of land litigation support, land survey and others.
- Management of land and property assets. In addition to providing asset rental services, renovation of infrastructures, and asset management, following the business expansion, this business segment now offers facility management services.
- Infrastructure development. This segment builds supporting or supplementary infrastructure in order to support Adaro Group’s operational activities, such as employee dorms and housing, and other supporting infrastructure. This segment now offers consultancy services for project management’s infrastructure development and constructions.
- Agribusiness management. This segment is tasked with the land security and operations of agribusiness activities of the Adaro Group. In 2018 this segment conducted long-term assessment of land security pre-operations at companies under Adaro Mining pillar, and began the production and marketing of manure as an extension of its cattle farming supply chain. This activity also directly supports land reclamation activities carried out by the Adaro Mining pillar.
- Management of land assets for plantation. This segment carries out the management of oil palm plantations and palm oil mills owned by the Adaro Group.
- Land reclamation, rehabilitation and forestry. This segment provides project management, supervision and evaluation services for replantation and land rehabilitation activities to fulfill the obligations of coal mining companies under the Adaro Mining pillar. In 2018, this business segment acquired two subsidiaries which own permits for forest management for ecosystem restoration and forest management for carbon absorption.
Regional Integrated Support Area
Regional Integrated Support Area (RISA), built by AE’s subsidiary PT Adaro Persada Mandiri, is an integrated area located at Kilometer 69, Jl. Tambang Paringin Lama, Paringin, Balangan district. RISA will stand on an area of 150.7 ha, comprising offie complex, workshop, and warehouse, mainly for supporting the mining operations of PT Adaro Indonesia (AI) and Balangan Coal Companies (BCC). RISA will offer a number of features, such as ready-to-build land, security system connected with AI’s security system, PLN power access, drainage system and clean water supply from the water treatment plant (WTP).
Being located on an area outside AI and BCC’s concession areas but equipped with direct accesses to AI and BCC’s activities, RISA can provide support for AI and BCC’s operations in the longer term. Furthermore, RISA’s location is also connected to the provincial road and the port / Kelanis Dedicated Coal Terminal, making it a strategic and reliable complex for supporting large scale industries, which is significant for the regional economic activities at the Balangan district and its surrounding.
As of the end of 2018, a total of 44.7 ha of RISA had been constructed, and seven companies had occupied a total area of 33.7 ha.