BOARD OF DIRECTORS' REPORT

marine, and port services segments at PT Pelabuhan Indonesia (Persero).

• Increased synergy with other SOEs in the shipping and logistics transportation segment.

3. Use of Technology

   Potential use of technology and digitalization to increase the port services effectiveness and efficiency.

4. Strategic Partnership

   Increasing business cooperation with strategic partners and strategic alliances.

Following the merger of Pelindo I, Pelindo III and Pelindo IV into Pelindo II, the Company is optimistic it will continue to improve its performance in the short term and in the long term. The merger of the four business entities is expected to increase the maritime connection network for connections between domestic and international ports. Through this merger, the Company has better strategic control and strong financial support as Pelindo’s business operations will be more coordinated, efficient, effective, and have certain standards that will have a good impact on the community, especially service users. In other words, the Company has good business prospects supported by the Company’s strengths, namely:

1. Network Area and Control, and Container Market Share
   1. wide reach of the port network throughout Indonesia.
   2. strategic control nationally through overall planning for network and asset investments.
   3. the Indonesian container market.
2. Completeness of Port Services and a Diversified Portfolio
   1. A complete business service chain in the port business with 4 (four) clusters:
      • Containers
      • Non Containers
      • Logistics and Hinterland Development
      • Marine, Equipment and Port Services
   2. A diversified portfolio outside the port business.
3. Strategic Port

   Strategic locations for transshipment hubs.

4. Stakeholder Relations

   Support for high legality aspects in every business activity carried out.

5. Business Experience

   Experience and track record in carrying out port activities (port know-how).

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: