History Vision
Letter from
the Commissioners
Letter from
the Directors
Award Glossary

Letter from the Commissioners

Dear Shareholders,

The year 2020 was an example of how a business needs to stay nimble in order to overcome challenges. The global multidimensional crisis caused by COVID-19 tested our business model and strategy once again – and i am glad to report that your company was able to deliver on its operational and financial targets amid the tough market condition.

Review of work plan and performance

On behalf of the entire Board of Commissioners, I want to take this opportunity to commend the Board of Directors of PT Adaro Energy Tbk (AE) on their astute leadership in these challenging times. The rapid fall in demand and prices for our products required us to quickly adjust our plans, reprioritize our capital expenditure, take aggressive cost efficiency measures, and preserve cash to ensure that we can ride the downturn. All the while ensuring that our people are safe, as their health and safety are our number one priority throughout this pandemic. swift response from the Board of Directors and AE’s management enables our operational activities to continue without disruption throughout the pandemic and allow us to provide reliable supply to our customers.

Our conservative approach in managing our business and finances resulted in solid liquidity and financial position in 2020. Contribution from non-coal mining pillars also protected AE against the headwinds. Approximately 44% of our operational EBITDA was generated from non-coal mining pillars, further proof of the resilience of our integrated business model. We will continue to improve the performance of the non- coal mining pillars to balance against the commodity cycle.

Our supervision on strategy implementation

The Board of Commissioners, with the assistance from Audit Committee, closely monitor strategy execution and effectiveness of governance process and risk management at AE to perform our control function and supervisory duty. We maintain frequent communication with the Board of Directors through regularly scheduled meetings and impromptu meetings to ensure that we receive the latest updates on the company’s development. This was our effort to ensure that the management executes business plans and strategies with full adherence to our Code of Conduct and the applicable regulatory requirements. it is our view that the Board of Directors has performed well in their management and executive functions in 2020.

Our view on AE’s financial and operational performance target for 2021

We agree with AE’s 2021 guidance that the Board of Directors put together as it shows our optimism on post COViD-19 economic recovery, while at the same time being mindful of market uncertainties. We will continue to advise and supervise the Board of Directors on short- term and long-term strategy formulation as well as on the execution in order to create maximum sustainable value for our stakeholders.

We recognize that environmental, social and governance (ESG) considerations are becoming more important in this day and age. We strive to adhere to the standards required by our regulators and we will continue to improve our ESG performance and disclosure to help stakeholders better understand the efforts and initiatives we are taking on the ESG front.

Compliance and implementation of Good Corporate Governance (GCG)

it is our assessment that the Board of Directors has dedicated their best efforts to apply GCG as an integral part of AE’s operations and pursue the highest level of compliance to its principles. The Board of Directors conducts periodic review and evaluate AE’s execution of GCG principles to identify, adjust and improve our operations in compliance with prevailing laws and regulations.

The Adaro Values of integrity, meritocracy, openness, respect and excellence are the guiding principles for our behaviors at work. We have also promulgated a set of compliance-based code of conduct that specifies and guides the implementation of our corporate values and principles.

Changes to the Board of Commissioners’ Composition

in 2020, there were no changes to the composition of the Board of Commissioners.

Gratitude and appreciation

The Board of Commissioners greatly appreciates the Board of Directors effort in leading the company to navigate a challenging year. We would also like to extend our gratitude and appreciation to management and all employees for their hard work and dedication. We also thank our shareholders and stakeholders for their unrelenting support for AE.


Edwin Soeryadjaya

President Commissioner

Last modified on May 29, 2021, 7:33 am | 27099