Management Profile

Board Of Commissioners Profile


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Prijono Sugiarto
President Commissioner

An Indonesian citizen, he has been appointed as President Commissioner of the Company since May 2010. Currently, he is also the President Director of PT Astra International Tbk since March 2010, President Commissioner of PT United Tractors Tbk, PT Astra Honda Motor and PT Menara Astra. Previously, he was a Director of PT Astra International Tbk (2001-2010) and Sales Engineering Manager of Daimler-Benz Indonesia. He holds a Dipl.-Ing. in Mechanical Engineering from the University of A. Sc. Konstanz, Germany in 1984 and the degree Dipl.-Wirtschaftsing in Business Administration from the University of A. Sc. Bochum, Germany in 1986.





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Chiew Sin Cheok
Vice President Commissioner

A Malaysian citizen, he has been the Vice President Commissioner of the Company since 2007. He has been Group Finance Director of Jardine Cycle & Carriage since November 2006. He has worked for Jardine Matheson since 1993 where he has held various senior finance positions, prior to which he worked for Schroders and PricewaterhouseCoopers, both in London. He is also Commissioner of PT Astra International Tbk and PT Astra Otoparts Tbk, a member of the Advisory Committee of PT Tunas RideanTbk and an alternate Director of Cycle & Carriage Bintang. He is on the Board of Governors of the Keswick Foundation, a charitable body in Hong Kong. He graduated from the London School of Economics and Political Science with a Bachelor of Science (Economics) degree and obtained a Master of Management Science degree from the Imperial College of Science and Technology, London. Currently, he is a fellow of the Institute of Chartered Accountants in England & Wales and has completed the Advanced Management Program at the Harvard Business School.



An Indonesian citizen, he is appointed as a Commissioner of the Company in 14 April 2015. He is also a Commissioner of PT Musashi Auto Parts Indonesia, PT Showa Indonesia Manufacturing since 2009 and PT Federal International Finance since 2007. In addition, he also serves as President Commissioner of PT Suryaraya Rubberindo Industries, Vice President Commissioner PT Astra Otopart Tbk, Executive Vice President Director in PT Astra Honda Motor and Director in PT Astra International Tbk. He joined Astra in 1984 and previously held the position of CEO Honda Sales Operation, CEO Daihatsu Sales Operation, Marketing Director of PT Astra Daihatsu Motor and PT Astra Honda Motor. He graduated from the Parahyangan Catholic University in 1984.

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Johannes Loman
Commissioner



An Indonesian citizen, he has been an Independent Commissioner of the Company since April 2011. Currently he serves as Independent Commissioner of PT United Tractors Tbk and PT Samudera Indonesia Tbk, member of the Advisory Board of the National Human Rights Commission and advisor to the Indonesian Physics Olympic Team. He was a lecturer at the PPM Management Institute from 1968 and its President Director in 1988-1998. Since 1998 he has been actively involved in the implementation of good corporate governance in various companies and non-profit organizations. He graduated from the Universitas Indonesia in 1967, majoring in Psychology and acquired his Doctor of Philosophy degree in Business Administration from the University of Southern California, USA in 1985.




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Anugerah Pekerti
Independent Commissioner



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Soemadi Djoko Moerdjono Brotodiningrat
Independent Commissioner

Indonesian citizen, he was appointed as the Independent Commissioner of the Company in April 2015. Previously, he served as Ambassador/Indonesia Permanent Mission to the United Nations and other International Organizations in Geneva (1991-1995) and Director General of Foreign Economic Relations at the Foreign Affairs Ministry (1995-1998). Soemadi also served as Indonesian Ambassador to Japan in Tokyo (1998-2002), Indonesian Ambassador to the United States in Washington, D.C. (2002-2005) and as Head of Indonesian Delegates to the Economic Partnership Agreement Negotiation Indonesia–Japan from 2005 to 2008. Currently, Soemadi is entrusted to head Indonesian Delegation to the EFTA–Indonesia Comprehensive Economic Partnership Agreement negotiation. He also serves as Advisor on International Affairs to the Defense Minister and is a member of the Asia-Europe Foundation Board of Governors and a lecturer at the Foreign Affairs Ministry’s Center for Education and Training. In these capacities, he has participated as speaker and participant in various national and international seminars and symposiums, particularly on topics of international economic relations and regional security architecture.

Soemadi graduated from Department of International Relations, Faculty of Social & Political Sciences, Gadjah Mada University in Yogyakarta in 1965 and from the Institut International d’Administration Publique–Section Diplomatique, Paris in 1969.



Board Of Directors Profile


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Widya Wiryawan
President Director

An Indonesian citizen, he has been the Company President Director since May 2007. Currently he also serves as a Director of PT Astra International Tbk since May 2008. He joined Astra Group in PT Astra International Tbk in 1994. Previously, he served as Finance Director of PT Federal International Finance (1997-2000), Finance Director of PT Astra Otoparts Tbk (2000-2005) and appointed as Vice President Director of PT Astra Otoparts Tbk in 2006. He graduated from Bogor Institute of Agriculture and holds a Master of Business Administration from the University of Sydney, Australia.


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Rudy
Independent Director

An Indonesian citizen, he has been the Company Director since April 2013 and he was appointed as the Company Independent Director since 14 April 2015. Previously he served as a Finance Director of PT Asuransi Astra Buana (2009–2013) and Chief Corporate Planning and Strategy of PT Astra International Tbk (2007–2009). He joined Astra Group in 2000 and started his career in PT Charoen Pokphand Indonesia Tbk, Inti Salim Corpora and PT Trimegah Securities. He graduated from University of Trisakti majoring in Economic and holds a Master of Applied Finance from the University of Melbourne, Australia.





An Indonesian citizen, he has been the Company Director since May 2000. He served as the project leader in implementation of the plantation information system of the Astra Agro Lestari Group (1995-1996) and served as the Company Deputy Director for Production (1996-1998). He joined the Company in 1981. He completed his education at the Bogor Institute of Agriculture in 1981, majoring in Agricultural Technology.

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Bambang Palgoenadi
Director



An Indonesian citizen, he has been the Company Director since May 2007. He was President Director of PT Menara Terus Makmur (2005-2007), he served as Director of Federal Nittan Industries (2001-2004), previously appointed as Division Head of Bearing Production of PT SKF Indonesia (1984-2000). He joined Astra Group in 1983. He graduated from Universitas of Indonesia, majoring in Metallurgy.


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Juddy Arianto
Director



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Joko Supriyono
Director

An Indonesian citizen, he has been a Company Director since May 2007. At the Company, he was Deputy Director of Plantations and Mills Operation (2005-2007), he served as Area Director (2002-2005), Division Head of Human Resources (2000-2002) and as Personnel Department Head (1999-2000) after previously serving as Training & Recruitment Department Head (1996-1997). He joined the Company in 1995 as Training Department staff. He was an Instructor of Quality Management Consultant of PT Wahana Kendali Mutu (1994-1995) and was Head of Afdeling at PT Perkebunan Nusantara II, Medan (1986-1993). He graduated from Gadjah Mada University, Yogyakarta majoring in Agriculture.


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Jamal Abdul Nasser
Director

An Indonesian citizen, he has been the Company Director since April 2011. Previously he served as the Company Director of PT Denso Indonesia from 2008, after serving as the Director of PT Kayaba Indonesia and PT Toyoda Gosei Safety System Indonesia. He joined Astra Group in 1985 and started his career in PT SKF Indonesia, PT Federal Adiwira Serasi and PT Adiwira Presisi Industri. He had served as Division Head of PT Astra Otoparts Tbk in 2003 and was appointed as Deputy Chief Operation Officer in 2007. He graduated from Bogor Institute of Agriculture in 1982, majoring in Agricultural Mechanization.


In 2014 the average price of Crude Palm Oil (CPO)
on the world market was lower compared to 2013,
but the average CPO sales price in Rupiah showed
an increase as a result of the depreciation of the
Indonesian Rupiah against the US Dollar. Generally,
commodity prices are still very luctuating caused by
the decreased pace in economic growth of several
major CPO markets such as India and China. In
addition, some markets shifted consumption from
CPO to soybean oil when the price disparity between
the two commodities was narrowing. In spite of this,
global demand for CPO is continuously growing and
remains a promising commodity in the future.

Amidst these various challenges, the Company has
again proven its capability to maintain a sustainable
business growth. Over the period of 2014, the
Company recorded an increase in CPO production of
13.3% from 1.54 million tons to 1.74 million tons. This
increase was supported by a rise in Fresh Fruit Bunch
(FFB) production of 8.6% from 5.12 million tons in
2013 to 5.56 million tons and a rise in third party fruit
purchases of 35% from 1.78 million tons in 2013 to
2.39 million tons in 2014. In line with the production
increase of FFB, the average crop productivity (yield)
grew from 20.70 tons per ha to 22.04 tons per ha. In
addition, the Company’s CPO sales price also rose
13.8% from Rp 7,277 per kg to Rp 8,282 per kg.



The positive operational performance has led the
Company to book a net proit of Rp 2.50 trillion in
2014, or an increase of 39% compared to the net
proit of Rp 1.80 trillion in 2013. This resulted from
the hard work of all employees in implementing a
program to improve productivity and innovation at all
fronts.

Mechanization and Automation
Business in the oil palm plantation sector is
increasingly challenging with limited opportunity
to expand the area. As relected in previous year
management report, the Company has taken a number
of strategic measures in facing these challenges.
One of these is an effort to achieve cost leadership
through a mechanization and automation program to
improve productivity. There are two initiatives in this
mechanization program, namely fertilizing and fruit
transportation.

In addition, the Company has also implemented
automation in various processes at the mill in order to
improve eficiency and productivity.

Another important part related to mechanization and
automation is replication. Meaning, an innovation
that has demonstrated a successful implementation
in one plantation must also be able to be adapted in
other plantations. All functions in the Company, with
their respective tasks and responsibilities, are also
expected to contribute to the success of replication
of the mechanization and automation program.

Business Development
The Company has entered into the palm oil
downstream sector. In 2014, the reinery, PT Tanjung
Sarana Lestari (TSL, a Company’s subsidiary) in the
Regency of North Mamuju in West Sulawesi province,



has been operating commercially, with a daily
capacity of 2,000 tons CPO. To support shipment
of its products, namely RBDPO (Reined, Bleached
and Deodorized Palm Oil), olein, stearin, and PFAD
(Palm Fatty Acid Distillate), the Company owns a Port
in Tanjung Bakau, which can accommodate vessels
with a capacity of 20,000 dwt (dead weight tons).

The Company also established a joint venture
marketing company with KL-Kepong Plantation
Holdings Sdn, Bhd., a Malaysian company, to export
its downstream product into markets such as China
and Philippines.

Human Resources Management
Quality human capital are the Company’s key assets
to progress. In order to improve the human capital
which number 35,351 personnel by the end of 2014,
the Company continuously implements a human
resources development program by providing a
series of consistent technical training to ensure
implementation quality of its business activities.

Leadership training is also provided to the Company’s
best cadres, to become the future leaders of the
company. A good and well planned cadre formation is
the key to ensure the going concern of the Company.

Good Corporate Governance
The Company always emphasized Good Corporate
Governance. Implementation of Good Corporate
Governance (GCG) aims to ensure that company
operational standards are implemented in
accordance with prevailing laws and regulations and
meet business ethics to protect the interests of all
stakeholders.



Through the Audit Committee, which is responsible
for carrying out the supervisory function, it is ensured
that the corporate governance is implemented
properly, transparently, and responsibly at every stage
of the processes within the Company organization.

Corporate Social Responsibility (CSR)
The existence of the Company’s oil palm plantation
should also beneit the community’s welfare. This
is in line with the Company’s mission to contribute
to the development of the nation’s prosperity. In
carrying out its Corporate Social Responsibility
(CSR), the Company implements a program with
a focus on four areas, namely: education, health,
economic empowerment for the communities, and
environmental preservation.

In education, the Company is managing 36
kindergartens, 22 elementary schools, and 7 junior high
schools involving a total of 12,236 students and 515
teachers, The Company also provides scholarships
for achieving students so they can enjoy higher
education. Apart from directly building and managing
schools, the Company is also fostering a number of
schools in the surroundings of the plantation so that a
positive social relationship is established between the
community and the company.

In health program, the 29 Polyclinics and 322 Public
Maternal Health Centers (Posyandu) operated/
supported by the Company not only provides health
services to its employees and their families, but also
to the community surrounding the plantation.

In the area of economic empowerment for the
communities, the Company established a partnership
with the community through a farmer Plasma and
Income Generating Activities (IGA) program. To
support the progress of the Plasma and IGA programs,
the Company also encourage the establishment of a
Micro Finance Institution to assist in the inancing

of the participating farmers. Throughout 2014, the
Company has spent Rp 6.4 trillion to purchase FFB
from the community.

In environmental preservation, an area of more than
26,000 hectares of land has been set aside as a
conservation area. Establishing an atmosphere of
harmony between the company and the environment
is an unconditional requirement for achieving
sustainability of the Company’s business. In evidence
of its commitment to environmental governance,
ten of the Company’s plantation received the Green
PROPER ratings and nine plantations the Blue
PROPER ratings. The PROPER rating is given by
the Government related to environment, where the
process of environmental performance assessment
is conducted independently by a team of experts
coordinated by the Ministry of the Environment and
Forestry.

Sustainability Aspect and ISPO
The Company is also highly committed toward
implementing sustainable corporate governance. On
ISPO (Indonesian Sustainable Palm Oil) certiication,
a mandatory requirement by Government for all
oil palm plantations in Indonesia, the Company is
committed to complete the audit and obtain ISPO
certiication for all plantations under its management.

Up to the end of 2014, nine of Company’s plantations
have obtained ISPO certiication. Whereas, for the
remaining 11 plantations and mills, the certiication is
currently being processed.

Outlook and Plans for 2015
We passed the year 2014 with excellent results
amidst various challenges. The palm oil industry
will continue to encounter many challenges in 2015,
including luctuation in CPO prices on the world
market and global economic conditions that have not
fully recovered.


In order to maintain the positive growth momentum
in 2014, the Board of Directors has formulated
strategies and work plans for 2015, which include:

1. Continue the mechanization and automation
program while replicating the program to all
plantations. The mechanization and automation
program will support Company efforts to
establish itself as the cost leader in the palm oil
industry.
2. Further development of the downstream sector to
meet the demands of the export market
3. Strengthen Research & Development (R&D) to
produce superior seeds that will support plant
productivity. These efforts are expected to
become the Company future core competence.
4. Develop the human capital through training
programs.
5. Implement corporate social responsibility
programs to ensure the preservation of a
harmonious relationship between the Company,
the people, and the environment around the
plantations.


Concluding this Board of Directors report, allow us
to express our sincere appreciation to all employees
for their best contribution in 2014. We hope that the
Company may continue to progress and contribute to
the nation’s prosperity.