The Company was incorporated on 15 September 2003 as PT Okansa Persada. The Company went public and listed its shares on the Surabaya Stock Exchange on 29 March 2006. The Company’s business lines include mining, trading, transportation and services which are conducted through its subsidiaries.
On 19 December 2007, the Company changed its name to PT TD Resources, Tbk to reflect its core business in natural resources. In addition, the Company’s controlling shareholder agreed to relinquish majority ownership in PT TD Resources, Tbk to PT Ancora Resources (now PT Multi Berkat Energi), the holding company that primarily invest in natural resources in Indonesia.
The Company set out to enlarge its business opportunities through acquisition. On 13 October 2008 PT TD Resources, Tbk acquired 40% of PT Multi Nitrotama Kimia (MNK), a leading of blasting service provider and mining explosives in Indonesia.
The developments previously mentioned were the initial steps taken by the Company to enroot a strong foothold in businesses at the oil & gas, mining, and energy sector in Indonesia. The success in coping with various challenges faced by the Company would be a strong fundamental for the future growths. Aside from developing growth through multiple acquisitions, the Company will continuously expand and acquire a diverse range of businesses in order to realize the Company’s vision in becoming the pre-eminent natural resource company in Indonesia.
On 6 November 2008, under the consent of the shareholders, PT TD Resources Tbk altered its name to PT Ancora Indonesia Resources Tbk and became a subsidiary of PT Ancora Resources (now PT Multi Berkat Energi) which engaged in investment and development of natural resource business in Indonesia. Afterward, in June 2009, the Company established PT Ancora Shipping, a shipping company with the aim to support the other businesses of the Company.
Furthermore, the purpose of the establishment of PT Ancora Shipping is to acquire benefits from the Cabotage Shipping Law of 2010. The Company continued to expand by acquiring 60% stake in PT Bormindo Nusantara (BN) in November 2009. BN is a provider of oil and gas drilling services. Additionally. Ancora Indonesia Resources OKAS
OVERVIEW
Good Corporate Governance (GCG) is a structure and mechanism that regulates corporate management in order to generate sustainable, long-term economic value for shareholders and stakeholders. Adherence to the principles of good corporate governance contributes to improvements in company performance.
IMPLEMENTATION OF GCG PRINCIPLES
Building on the basic principles of GCG and taking into account the Indonesia GCG Basic Guidelines laid down by the National Committee on Governance (NCG), the Company has established a corporate management system that covers the following elements:
1.Transparency
The principle of transparency is always applied by the Company in its business through delivering material and relevant information, both easily accessible and understood by stakeholders. The Company provides to public and shareholders with information to the fullest extent possible, both in compliance with the Financial Services Authority (FSA) regulations and on its own initiative. Reports are published on a periodic basis and on time, consisting of audited quarterly, half yearly, and annual financial reports. Information is also released through public expose, print and electronic media, and investor forums.
2.Accountability
The Company has established a corporate management system that supports clarity in functions, implementation and responsibility of the work performance of organizational organs. The principle of accountability among others is assured through the Directors’ report to the Board of Commissioners and joint evaluation of the Company’s financial performance; submission of financial statements to the Annual General Meeting of Shareholders (GMS), establishment of an internal audit body and the appointment of an external auditor, and adherence to business ethical standards and corporate code of conduct.
3.Responsibility
To maintain long-term business sustainability and earn recognition as a good corporate citizen, the Company always upholds compliance with existing laws and regulations, and fulfills its obligations to the public and the environment. Through Corporate Social Responsibility (CSR) program, the Company is directly engaged in a wide range of social activities focused on education and community empowerment.
4.Independency
The Company ensures that corporate management is implemented in an independent manner where no organizational organ can dominate the other and neither can there be intervention from others. For example, the Company’s Board of Commissioners and Directors hold independent views for each decision reached, but possible to get advice from independent consultant, legal and human resource consultants, as well as relevant committees to support the smooth implementation of duties. Furthermore, the Company’s Board of Commissioners currently consists of 2 (two) Independent Commissioners to guarantee the independence of the Board of Commissioners in overseeing the Company.
5.Fairness and Equality
The Company specifically pays attention to the interests of its shareholders and other stakeholders. The Company also consistently ensures equal treatment of the public, capital market authorities and communities, and stakeholders. Good relations with employees are maintained by being heedful of their rights and obligations in a fairness and equal manner. Ancora Indonesia Resources OKAS
BORMINDO NUSANTARA
OPERATIONAL REVIEW
PT Bormindo Nusantara (BN) is an oil and gas drilling contracting company specializing onshore rigs in Indonesia established in 1981. With more than 30 years of experience, BN provides services in the field of onshore drilling services and workover services with the competence and equipment owned by BN. Services are performed with 14 high-specification rigs currently owned. BN also offers a range of drilling-related services, including high pressure well control equipment, special drilling pipes, drilling register and monitoring systems, top drive drilling and rig transfer equipment. BN also provides workover services and well management enabling service users to intervene whatsoever deemed required for oil wells or other type of well management.
Completing the above services, BN offers management services across all aspects of drilling engineering and operations, from concept-building to execution and completion that are all covered in integrated project management services. In addition, BN also provides equipment rental services and drilling equipment and workover and manpower training services for drilling operations, well control, drilling techniques and the use of equipment and tools. BN proven track records that are proven to be safe, reliable and timely often convince clients that they will receive quality services fulfilling their expectations. Long-term contracts with major oil companies have also established BN’s reputation as one of the leading drilling and workover services companies in Indonesia.
The detail about Bormindo Nusantara can be found at http://www.bormindo.com/
HEALTH, SAFETY AND ENVIRONMENT (HSE)
BBN will always put HSE as an aspect that requires special attention. Up until now, BN is still recognized as an oil and gas drilling and well services company with a good reputation in HSE. BN’s high commitment to work safety and operational quality has made BN a drilling service contractor with the lowest number of accidents.
MARKETING
BN’s target market is oil and gas companies with Contract of Work in on-shore fields since BN only rents rigs for drilling and maintenance of on-shore oil/gas wells. Bormindo is currently partnering with multinationals CUE Kalimantan Pte. Ltd, Pertamina dan Chevron, which is a major oil and gas company in Indonesian. To expand the market, BN focus on contract renewals and mass marketing activities for BN rig fleet. As a service company, customer satisfaction is key in maintaining a good working relationship. This would mean that BN will continuously improve the services it provides, fulfill all agreements in the contract, and maintain high standards of health and work safety by continuously maintaining the zero-accident achievement.
BN RESPONSIBILITY TO CONSUMER
The reputation of being the most preferred business partner is a top priority of BN. For that reason, BN emphasizes service excellence and constant upkeep on the quality of its rigs by having them well maintained on a regular basis. Asset replenishment is carried out to ensure that all rigs remain in top quality.
CERTIFICATIONS AND APPRECIATIONS Ancora Indonesia Resources OKAS
MULTI NITROTAMA KIMIA
OPERATIONAL REVIEW
PT Multi Nitrotama Kimia (“MNK”) is manufacturer of ammonium nitrate and nitric acid. Ammonium nitrate and nitric acid are compounds used as explosives in coal and mineral mining operation, public works and the cement industry. This explosive industry is a very strictly regulated industry considering the strategic interest and risks associated with the industry. MNK is a manufacturer, importer and distributor of explosives, specifically ammonium nitrate. MNK owns and operates an ammonium nitrate plant with an installed capacity of 137,000 tons/year in Cikampek, West Java, and has an office in Balikpapan, East Kalimantan and work areas in 8 (eight) provinces in Indonesia. MNK also has a detonator assembly with a capacity of 4 (four) million pieces per annum, located in Handil, East Kalimantan.
The detail about Multi Nitrotama Kimia can be found at http://www.mnk.co.id/
HEALTH, SAFETY AND ENVIRONMENT
Health, Safety and Environment or HSE is an integral part of MNK’s operational activity. The Company always prepares prevention to assure that all operational activities is safe for its employees and environment. HSE management in MNK is conducted by HSE Department that sets, implements and monitors K3L management system so that it is suitable with the legislation in force. In doing its job, HSE Department formulates and implements various programs to ensure the HSE in MNK.
MNK RESPONSIBILITY TO CONSUMER
MNK able to understand and able to meet consumer needs and can provide the best solution. As a provider of explosives such as ammonium nitrate, accessories and blasting services, MNK is responsible for the availability of products and services and the security according to point of delivery determined by consumers. MNK responsibility will end when the consumer receives the goods and services as set forth in the Handover of Goods Documents (BASTB). Ancora Indonesia Resources OKAS
THE COMPANY’S CORPORATE SOCIAL RESPONSIBILITY PHILOSOPHY
The Company understands that long-term sustainability cannot be achieved solely through the fulfillment of operational targets and financial performance business success will be achieved if the Company is able to maintain a balance between the achievements of economic performance, social performance and environmental performance. Therefore, the Company prepares a variety programs based on the needs of the communities surrounding the Company.
CSR activities are executed by the Company strived to reflect the moral responsibility of all stakeholders, empowering communities around the operation of the Company and improve people’s lives through education and community development.
Through CSR program, the Company expects to be able to create constructive and harmonious relationships between stakeholders, the Company and the local community that can contribute to an increase in value to the satisfaction of all stakeholders.
CSR ACTIVITIES AND ACHIEVEMENTS
Referring to the Company’s philosophy, the CSR programs developed are always centered on 2 (two) main fields: Education and Surrounding Community Empowerment. The Company believed that, in the long run, both factors would bring invaluable changes to the society. Continuing the targets from previous years, this year the Company launched more CSR program that could ensure greater community reach.
In carrying out CSR programs, the Company collaborates with various parties. In the field of education, the Company works under the coordination of Ancora Group through Ancora Foundation, while for other fields, it would be carried through its subsidiaries. Ancora Indonesia Resources OKAS