Page 5 - KRA Annual Report 2020

KRA ANNUAL REPORT Management
2020 Report

The BOC is grateful and pleased to see how, against the sheer volatility caused by the pandemic in 2020, the
Board of Directors (BOD) had managed to address the challenges and transform KRA business dynamics
while ensuring that the business remains agile and sustainable. The BOD has carried KRA through the
stormy waters of 2020 by broadly and unflinchingly implementing business sustainability strategy: Protecting
Our People, Securing Our Business, and Supporting Our Community .

BOC applauds the BOD’s resolute execution of the cost management strategy during the pandemic. KRA has
managed to maintain the substance of the organization—its fighting spirit—intact, thanks to the extraordinary
cost efficiency measures it undertook.

Throughout 2020, the Board of Commissioners continued to carry out its supervisory function and ensure
effective implementation of Good Corporate Governance (GCG) principles in order to create added value for
all stakeholders. In conducting its supervisory function, we are supported by the Audit, Risk & Compliance
Committee, Project & Investment Committee and Nomination & Remuneration Committee .

According to the World Bank’s report in December 2020 entitled ““Indonesia Economic Prospects: Towards a
Secure and Fast Recovery”, Indonesia’s economy is projected to recover gradually within the next two years,
although still with a high level of uncertainty. In the 2021 economic outlook release by JP. Morgan, it is stated
that “The global economy will continue to heal throughout 2021 and beyond”, and that there are five main
factors that will enable global economic recovery and asset returns in 2021, namely virus, policy, inflation,
equities and the dollar.

In its report which was release in January 2021, the World Bank also stated that the global economy is
predicted to grow 4% in 2021 and 3.8% in 2022. Global recovery is expected to continue to strengthen in the
not too distant future in line with increasing confidence, consumption and trade activities, while also being
supported by the global distribution of COVID-19 vaccines. Meanwhile, the World Energy Outlook 2021
released by the International Energy Agency, projects that coal demand for electricity and industrial sectors
will continue to grow in India, Indonesia and Southeast Asia. China, which is still the world’s largest coal
importer, is also expected to continue to grow in the years to come.

The Board of Commissioners believes that Indonesia’s thermal coal market still has long term growth
potential. Meanwhile, the market for Remanufacturing Heavy Equipment in Indonesia will continue to grow, in
which KRA plays a role in supporting the government in realizing its development goals as well as national
energy resilience through coal and mineral supply. The variables that KRA can control are managing risk
optimally, being agile in navigating in the midst of uncertainty & volatility, as well as taking advantage of every
opportunity with an optimistic mindset .

In closing, the Board of Commissioners would like to express sincere appreciation to KRA management and
employees for their commitment and dedication in maintaining discipline and simultaneously projecting
creativity to adapt to the new realities in 2021. Our gratitude is extended to our shareholders for continued
support that allows KRA to promote capabilities and achieve improvements in many aspects of the Company.
We also thank all customers, business partners, the government and other stakeholders for trust and
collaboration during these challenging times. KRA is fully committed to pursue best efforts that contribute
optimal value to all stakeholders going forward
st
Jakarta, June 21 , 2021

Yasuo Suzuki
President Commissioner

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