PT AKR Corporindo Tbk : Summary Report 2023

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THEME

EXPLANATION

Raising the Bar

Progressing Further

PT AKR Corporindo Tbk has built a solid track record over six decades serving a wide range of customers in Indonesia. Beginning with the establishment of AKR, focusing on logistics and supply chain services for petroleum and basic chemicals, over time this has developed into a logistics network through retail, aviation petroleum, and more.

Supported by competitive advantage, AKR has progressed with JIIPE Special Economic Zone in Gresik, East Java, playing a crucial role in an integrated supply chain ecosystem offering multimodal transportation, deep-sea ports, and interconnectivity and competitive utilities such as gas and other renewable energy sources. This aligns with AKR's strategy of integrating competitive advantages in logistics infrastructure and sustainability initiatives. In addition to supporting the national industry, JIIPE can also attract direct foreign investment.

AKR's business transformation demonstrates a clear vision, strong leadership, sustainable resilience, and adaptability in business dynamics, capturing momentum and business opportunities that can drive new growth and foresee downstream trends in Indonesia, boosting future economic growth. Besides the utilities and world- class facilities provided by JIIPE, JIIPE has potential further benefits to AKR distribution business.

In practice, AKR also strives to conduct its business responsibly by prioritizing Environment, Social, and Governance (ESG) principles, to create a positive impact for all stakeholders.

These steps have led AKR to consistent growth, evidenced by net profit in 2023 reaching Rp2,780 billion, a 16% increase. Growth over the past five years has been driven by a strong business model, with AKR at the forefront of all aspects of business with strong financial management, adequate infrastructure, comprehensive information technology, and reliable human resources. In new level of growth optimistic about driving business progress across various industries, potentially becoming a trendsetter for Indonesia's future economic growth.

Summary Report 2023

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TABLE

OF CONTENT

Theme Explanation	2
Table of Contents	3
AKR : Achieving New Levels of Growth	4
Strengthening Foundations to Drive	5
Sustainable Growth
Outstanding Achievements in 2023	8
Improving Contributions, Growing	10
Together
2023 Strategy	11
Awards and Certifications	12
Importants Events	14
General Information	16
A Brief History of the Company	17
Organizational Structure	18
Corporate Group Structure	19
Operating Regions and List of Office	20
Address
Business Sectors	22

Corporate Vision and Mission	28
Key Company Values	29
Company Record	20
Financial Summary	32
Stock Summary	36
Board of Commissioners' Report	38
Board of Directors' Report	44
Operational Overview	52
Human Resources	58
Information Technology	60
Corporate Governance Achievement	62
Commitment to Corporate Governance	63
Implementation
Assessment of Corporate Governance	65
Implementation
Sustainability Strategy	66
Sustainability Performance Overview	73
2023

www.akr.co.id

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AKR : ACHIEVING NEW LEVELS

OF GROWTH

In the midst of the current business dynamics, AKR has succeeded to transform uncertainty into opportunities and challenges into potential to provide sustainable added value. AKR has maintained profitability and is positioned well to capture future growth potentials.

JIIPE Achieves Best Performance Beyond Target

By the end of 2023, AKR had 24 tenants in JIIPE. Growth is also evident from the success in achieving land sales targets, amounting to 91 hectares compared to the target of 75 hectares.

	24		91		447		22%
	tenants		hectares	hectares	Contribution JIIPE to AKR
	Total Tenants		Land sales in 2023	Cumulative Land	Consolidated Gross Profit
					Sales and Land Lease at
					JIIPE
JIIPE's Best Achievement Driven by:
	Readiness and	Construction of Largest Single	Obtaining Special	Supported by
	Development	Line Copper Smelter owned by	Economic Zone	Indonesia's
	of land, ports,	PT Freeport Indonesia (Initiated	status since 2021	Downstream
	utilities, and	in 2019 and operational in 2024)	and an operational	Policy
	infrastructure				certificate since
					2022

Solar rooftop panels installed at the JIIPE utility center open opportunities for tenant utilization.

Water and waste treatment facilities (WTP & WWTP) to minimize water extraction

		JIIPE Drives Clean and
		Low-Carbon Energy
		• Providing cleaner and renewable
		energy
Industrial area with no water runoff			Gas-powered electricity generators
				will be used as the primary power
				source.

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STRENGTHENING FOUNDATIONS TO DRIVE SUSTAINABLE GROWTH

AKR is a leading supply chain and logistics company as well as the one of the largest developer of integrated industrial estates and ports in Indonesia, supplying basic chemicals, energy, and logistics to the Indonesian industry through essential infrastructure investments spread across the archipelago.

Proven business model

commission based

Discipline working capital

management

Strengths

Cost efficiency

Investment in new growth areas

such as JIIPE

AKR enhances value for stakeholders by meeting the needs of customers from various industries, acting as an extension of suppliers, conducting business in accordance with regulations, and providing profits and benefits to shareholders and employees.

Despite various current and future business challenges, AKR has proven itself resilient, with a strong business model and adequate infrastructure. Currently, achievements in logistics include 11 seaports, 6 river ports, and storage tanks at 20 locations across the Indonesian archipelago.

Location of Tank Terminals

Hub/Sea Ports

Sea Ports

River Ports

Sumatera		Jawa-Bali	Kalimantan	Sulawesi
45,300 KL		592.000 KL	151.600 KL	30,500 KL
• Medan Anggada		• Tj Priok	• Stagen - Kalsel	• Bitung
• Medan Gabion		• Banten Ciwandan	• Pontianak
	• Banjarmasin
• Palembang Andahanesa		• Semarang Tj Emas
	• Palaran
• Lampung		• Surabaya Nilam Timur
	• Tanjung Selor
		• Surabaya Nilam Utara	• Buntok Muara Teweh
		• Terminal Nilam Utara (TNU)
		• Bandung
		• Bali
		• Jakarta Tank Terminal (JTT)

www.akr.co.id

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To drive efficiency and enhance customer experience, AKR has an IT platform to monitor the movement, inventory position, and condition of products from upstream to downstream, from the beginning of the transaction to the hands of consumers.

AKR's main businesses are trading and distributing petroleum and basic chemicals, including caustic soda, sodium sulfate, PVC resin, and soda ash. Currently, the Company is expanding into retail petroleum with international oil majors and establishing gas stations to deliver high-quality gasoline while supporting the Indonesian government's efforts to deliver subsidized petroleum to customers.

Furthermore, AKR has taken a more progressive step through industrial area and the Java Integrated Industrial Ports Estate (JIIPE). With Special Economic Zone status, AKR is promoting recurring income potential by providing utility services, electricity, water, gas, and port operations that can drive sustainable growth for AKR.

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17	4	819,400
Sea and River Ports	Main Hub Terminals at:	KL Storage Tank Terminal
	Jakarta Tank Terminal (with
	VOPAK), Stagen, South
	Kalimantan, Surabaya &
	Medan

14	50,000	229
Ships/SPOB	M2 Warehouse	Trucks

www.akr.co.id

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OUTSTANDING ACHIEVEMENTS

IN 2023

Total Sales and Revenue

Rp42,087billion

Revenue

Trading and Distribution

Rp31,869 billion	Rp6,344 billion
	Petroleum	Basic Chemicals
	Manufacturing	Industrial Area
Rp558 billion	Rp2,323 billion
	Logistics Services
Rp993 billion
	Summary Report 2023

Summary

Report

Total Assets	EBITDA
Rp30,255 billion	Rp4,048 billion
11% yoy	14% yoy

Total Equity	ROE
Rp14,043 billion	24.7%

Net Profit	Net Gearing
Rp2,780 billion	-0.16x
16% yoy	Arus Kas Bersih

Governance Achievements

Investor confidence in AKRA's shares is		Increased number of companies investing
reflected in the 2023 market capitalization
	the JIIPE Gresik Special Economic Zone.
increase and a 5.35% increase in stock price.

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AKRA's stock trading activities have

proceeded smoothly, and the Company has not received any warnings from regulators and exchanges.

Increased employee awareness of the Company's culture, human rights, and workplace and environmental safety protection.

AKR has maintained its position in major

ESG indices of the Indonesia Stock

Exchange.

Opportunities for new business growth for

AKR.

www.akr.co.id

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IMPROVING CONTRIBUTION, GROWING TOGETHER

Commitment to sustainable development has become part of the business DNA, based on dedication to inclusive progress, improving the well-being of every individual in society, and increasing the profitability of our business. AKR actively supports the introduction of environmentally friendly and quality alternative energy sources, contributing to equal access to energy, and reducing economic inequality.

As a manifestation of its commitment and support for Sustainable Development, especially in Social, Economic, and Governance (Environmental, Social, and Governance/ ESG), AKR has established an ESG Committee to oversee and evaluate the implementation of ESG strategies.

• A total of 142,065.77 GJ of renewable energy used in AKR operations.
• Renewable energy mix reached 27% of AKR's total internal energy consumption.
• AKR's emissionEintensity is 0.02 tons of CO2e per Rp million of Gross Profit.
• Total environmental cost for
  AKR reached over Rp4 billion.

ESG Performance Achievements

• The 2023 CSR Program reached Rp24.19 billion
• Of the total middle-up management positions, 24% are held by women
• Fleet truck mileage without accidentsSwas recorded at
  34,31 million kilometers.
• Zero fatality

• Socialization and signing of
  Integrity Pacts by 1,654 AKR employees
• Zero legal violations in 2023
• Release of health, safety,
  and environmental policies, HumanGRights (HR) policies, and sustainable procurement policies

ESG Sustainalytics

26.0

Medium Risk

Main Stock Indices and ESG

Index LQ 45

IDX 30

Investor 33

Bisnis 27

ESG Quality 45 IDX KEHATI

ESG Sector Leaders IDX KEHATI

IDX LQ45 Low Carbon Leaders

ESG S&P Global

Increased to 34, maintained above the industry average

Transparency of Corporate Emission Calculation 2023

Platinum Category from BGK Foundation

Summary Report 2023