Message from the President Commissioner

Reports of Commissioners

Dear Respected Shareholders and Stakeholders,

Praise and gratitude to the Almighty God for all His graces and gifts, in 2021 AKR can continue to achieve sustainable business growth in the midst of various challenges faced.The Company’s performance in 2021 showed very good growth generally above the set targets. This performance was due to the hardwork of Board of Directors, its employees and in line with the improving economy. The Board of Directors implemented the correct strategies enabling the Company to record a net profit growth of 20% to reach Rp Rs. 1,112 billion.

The Board of Commissioners continues to pay great attention to the Board of Directors strategies implementation and their conformity with the Company’s medium and long-term plans. For our supervisory role, the Board of Commissioners empowers the Audit Committee, to supervise the policies and strategic steps carried out by the Board of Directors

Economic Condition  in 2021

In 2021, the economic conditions started to improve even though the COVID-19 pandemic was still a major challenge. The emergence of the Delta variant saw a daily spike in cases followed by a higher death rate. Facing these conditions, the Government implemented a Community Activity Restrictions (PPKM) policy that was more detailed than the previous policy and proved to be quite effective in reducing the number of daily cases.

For the economic sector, the Government enacted various stimuli through the National Economic Recovery (PEN) program, including a Government policy to maintain and prevent business activities from further deterioration by providing lending interest subsidies for affected micro, small and medium businesses, to accelerate the national economy recovery, as well as to support state financial policies.

Through these policies, the Indonesian economy grew by 3.69%, with the inflation rate being maintained at a low level of 1.87%.

Board of Directors’ Performance Assessment

In 2021, the Board of Directors implemented a number of strategic policies to enable the Company’s operations to continue to run optimally and to achieve the set business growth targets. Operational risk mitigation efforts were also carried out well, one of which was a vaccination program for all employees and their families. This step, in the view of the Board of Commissioners was very appropriate, as in addition to protecting the employees from the impact of COVID-19, this program also allowed employees to return to their activities more safely. The Board of Directors also remained focused on delivering the Company’s programs and plans in all business lines. One of the major achievements of Board of Directors was the designation of JIIPE as a Special Economic Zone (SEZ) by the President of Republic of Indonesia. This will provide many benefits to JIIPE customers and will also attract more investors to invest in the integrated area.

In addition, the Board of Directors also continued to strengthen its alliances, diversify and expand portfolios, as well as expand the customer base, all supported by increasing the internal capacity by improving the quality of human resources and information technology. All of these strategic policies helped AKR maintain its growth momentum despite the very challenging conditions.

Overall, AKR’s financial performance in 2021 succeeded in achieving the set targets. The Company’s revenue reached Rp 25,707 billion, a 45% increase from the previous year, resulting in the Company’s Gross Profit increasing by 12% to Rp2,293 billion, and Profit for the Year also increasing by 20% to Rp 1,112 billion.

For these excellent achievements, the Board of Commissioners is very satisfied with the Board ofDirectors performance in managing the Company in 2021 and hopes that they can maintain and continue the momentum to improve performance in 2022.

View on the Business Prospects Prepared by The Board of Directors

The economic recovery process will continue in 2022. With the increasing numbers of people who participated in the vaccination program, it is hoped that the pandemic will become endemic, so that economic activities can run better.

Based on a number of positive macroeconomic assumptions, the Board of Directors presented the

Company’s business prospects with the targets to be achieved. The Board of Commissioners view is that the targets set by the Board of Directors are quite challenging but very realistic targets. The Board of Commissioners fully supports the Board of Directors’ plans and strategies to achieve these targets. However, the Board of Commissioners continues to remind the Board of Directors to remain vigilant in managing the operations and to strictly implement the Continuity of Operations protocols as the pandemic is still not fully over. The Board of Commissioners also reminds the Board of Directors to continue to improve the risk management as there are still a number of uncertainties that can have an impact on the Company’s performance.

The growth momentum achieved by the Company must be maintained and improved, and to that end, the Board of Commissioners encourages the Board of Directors to optimize every available opportunity to support the Company’s business growth. Optimization of JIIPE marketing has to be the Board of Directors’ main concern in 2022, considering JIIPE’s status as Special Economic Zone (SEZ), and an industrial area that is very attractive to investors. The Board of Commissioners also encourages the Board of Directors to increase penetration in the retail fuel segment in line with increasing public awareness of and need for high-quality fuel.

View on Good Corporate Governance Implementation

Implementation of the Good Corporate Governance (GCG) principles at AKR, guided by the principles of Transparency, Accountability, Responsibility, Independence and Fairness (TARIF), has been carried out well.

The Board of Commissioners’ view is that the Company has made optimal efforts to continuously improve the quality of GCG implementation, by setting high quality standards based on the ASEAN Corporate Governance Scorecard. The Company is adjusting the structure and governance mechanisms according to these standards, including the Company’s internal policies.

The Board of Commissioners is of the opinion that the implementation of good and consistent GCG principles will provide positive value for the Company and increase our stakeholders’ trust. Therefore, the Board of Commissioners supports the efforts made by the Board of Directors to continuously improve the quality of GCG implementation.

Part of AKR’s GCG implementation is the availability of a whistleblowing system (WBS). The Board of Commissioners considers the WBS as a step towards preventing any fraud within the Company. The Board of Commissioners and the Audit Committee carefully monitors the WBS and our assessment is that the WBS is running properly.

However, the Board of Commissioners continues to remind the Board of Directors to socialize the WBS and its implementation mechanism so that this system will run better and provide optimal benefits for the Company.

Appreciation

On this occasion, the Board of Commissioners would like to thank the Board of Directors and all AKR employees who have succeeded in delivering a strong Company performance in 2021. The Board of Commissioners would also like to express its gratitude to our shareholders, investors, the regulators, and stakeholders for their trust and support enabling us to carry out our mandate to supervise the Company’s management.