Page 9 - KRA Annual Report 2020

KRA ANNUAL REPORT Management
2020 Report

Public Contribution Program to enhance Company's social protection, which refers to the four Pillars of CSR
program : Education, Health, IGA (Income Generating Activity), and Environment. Continuous commitment of
the company and all stakeholders are very important to improve quality of life in surrounding community.

The company has committed to develop competencies of employees. KRA realized that the competency
levels of employees have significantly impacted to the quality and productivity of the company. Various
programs and activities were carried out to improve the quality of human resources. These programs are
designed to increase the capabilities of senior leaders in the organization based on company core
competencies, including leadership capabilities, business strategy & market analysis capabilities, as well as
building business solutions in line with customer needs.

We all hope that 2021 will be better than 2020 and will be a year of economic recovery, along with increasing
access to the COVID-19 vaccine and vaccination activities. In the World Economic Outlook report, the IMF
predicts that global economic growth in 2021 will reach 5.50% and 4.20% in 2022. Meanwhile, Indonesia’s
economic growth in 2021, as predicted by Bank Indonesia, will be in the range of 4.30% -5.30%.

Continuing the situation of coal commodity, demand for thermal coal is not expected to experience a sharp
decline in the short term, considering that coal still functions as an important energy source that supports the
daily lives of people in developing countries. On the other hand, investment in renewable energy generation
requires a large amount of money and a long return on investment. However, it is necessary to demand that
the demand for thermal coal will gradually decline due to the consideration of climate change and other
environmental concerns.

In such challenging conditions, the collaboration that we will do should not only aim to create demand.
Collaboration with all business units in Komatsu, ASTRA, and AHEMCE with their respective advantages can
be maximized so as to create collaboration in SQCD-oriented (Safety, Quality, Cost, Delivery). In addition,
collaboration to encourage digital transformation is also the focus of development, both for digital
implementation in each company and integrated data sharing. Furthermore, with this collaboration, we can
produce superior products that can provide the best experience to our customers.

Not only increasing external collaboration, continuous improvement, and operational excellence remain the
key to the success of the internal remanufacturing process which incidentally has a higher level of uncertainty
than manufacturing. In addition, cost leadership is also an important point that requires special attention,
given the intense competition, both with emerging competitors. Therefore, the innovation culture must be
adapted in such a way as to support the implementation of cost reduction and quality improvement, as well
as comprehensive change management according to the company's needs.

Challenge after challenge in 2020 has been successfully handled by the Company. Therefore, on behalf of
the Company, the Board of Directors gives the highest praise for the trust, commitment and cooperation from
all stakeholders, especially to the management and all employees for their hard-work amidst the serious
challenges in the industry. The Board of Directors also expresses gratitude to the Board of Commissioners for
their guidance that has been helpful in order to achieve the Company’s performance in 2020. The Board of
Directors also gives the highest appreciation to the shareholders, customers and partners, for the trust and
cooperation that has been very supportive. The Company will continue to uphold its commitments to give the
best to all stakeholders and shareholders.

st
Jakarta, June 21 , 2021

Idot Supriadi
President Director

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