FINANCIAL REVIEW

MANAGEMENT ASSESSMENT OF MATTERS THAT COULD POTENTIALLY INFLUENCE BUSINESS CONTINUITY

Pelindo’s management conducts assessments on Pelindo’s business continuity, with the assessment carried out based on various factors including an analysis of the strengths of its financial and non-financial condition. Based on the assessment results, Pelindo believes that it has the resources to continue its business in the future, and does not see any material uncertainties that could give rise to any significant doubt about Pelindo’s business continuity.

ASSUMPTIONS USED BY MANAGEMENT DURING THE ASSESSMENTS

Several factors are taken into consideration by management when conducting assessments on business continuity, including:

1. The ability of Pelindo’s superior resources to compete in the port industry;
2. Pelindo’s position in the industry is good in the regional arena, which can make a major contribution to the country’s economy;
3. Good financial conditions by achieving Income for the year after effect of merging entity’s income in 2021 of Rp3.17 trillion; and
4. The Company health level with AA qualification in the Healthy category.

TAX ASPECT

In its operational activities, Pelindo has implemented Good Corporate Governance in a transparent and accountable manner, especially for managing its tax rights and obligations, which are carried out in accordance with applicable regulations.

Tax Payments and Non-Tax State Revenue (PNBP) are as follows: