FINANCIAL REVIEW

Based on the above, the Company is of the opinion that Company’s strengths and opportunities outweigh the existing weaknesses and threats. With the merger of Pelindo I, Pelindo III, and Pelindo IV into Pelindo II, the Company is optimistic that it can continuously improve its performance both in the short term and in the long term. In other words, the Company has good business prospects supported by the strengths of the Company.

STRATEGY FOR 2022

Based on the Company’s strategic roadmap in the Company’s Long Term Plan Book (RJPP) for 2021-2025, in 2022 Pelindo will be in the Business Alignment and Integration phase. In this phase, Pelindo will focus on:

1. Post-integration business alignment through operational and commercial standardization and integration to improve service quality;
2. Integrated investments for business development; and
3. Company reorganization and integrated culture development.

In the Business Alignment and Integration phase, the strategic initiatives to be carried out at the planning and execution stages in 2022 will include:

1. Strategic Initiatives Planning Phase in 2022:
1. Digitization and systemization of port operations;
2. Development of port infrastructure and equipment;
3. Additional marine service offering for Pelindo key accounts;
4. Integrated capital allocation;
5. Organizational restructuring;
6. Shared service function development;
7. Centralized knowledge management; and h. Internalization of an integrated Pelindo culture.
2. Strategic Initiatives Implementation Phase in 2022:
1. Standardization of port operations;
2. Integrated key account management;
3. Reducing/optimizing financing costs;
4. Joint/centralized procurement; and
5. Asset optimization.
3. Strategic Initiatives in the Planning and Implementation Phase in 2022:
1. Cluster creation and business model;
2. Optimization of core and non-core businesses to expand access to funding;
3. Integrated Learning and Development (L and D) program for standardization and quality HC improvement; and
4. Implementation of enterprise architect and IT Masterplan.