FINANCIAL REVIEW

MATERIAL INFORMATION AND FACTS OCCURRING AFTER THE DATE OF THE ACCOUNTANT›S REPORT

Up to the publication date of this Annual Report, no significant events occurred after the date of the accountant’s report that could impact future business performance and risks.

BUSINESS PROSPECTS

Global economic growth is predicted to continue a positive trend until 2026 although it will follow an upward-sloping curve from the growth seen in 2021 of 5.5%. This positive growth will be followed by growth in the flow of goods internationally. The pandemic created a new habit trend, one being the move to online shopping, and the e-commerce business has increased rapidly in response to this change. Most e-commerce goods are transported in container packaging and this will have a positive effect on global container traffic growth. This growth potential can be optimized by developing international transshipment in the Pelindo port areas located on the world’s shipping lanes.

For non-container cargo, the market for domestic goods traffic still has a huge potential as currently Pelindo only has a small market share of the national market. Pelindo will cooperate in several schemes with non-container ports including the Special Terminal (Tersus)/Terminal for Self Interest (TUKS) and ports belonging to Government Ministries/Institutions (K/L). Pelindo’s weakness in establishling these cooperations is that the tariffs are generally higher than private businesses. In addition, Pelindo needs to formulate additional value for its partners who own/ manage domestic non-container ports.