Adhi Kartiko Pratama PT

Adhi Kartiko Pratama PT is a junior nickel producer headquartered in Kendari, Indonesia, operating primarily in Indonesia. The company's portfolio consists of 1 operating mine. Key assets include Adhi Kartiko Pratama (North Konawe). The company's business model is centered on integrated nickel ore mining operations, managing the entire process from exploration to shipment. Operational activities are supported by a combination of traditional drilling methods and advanced technologies, including Ground Penetrating Radar (GPR) and Light Detection and Ranging (LIDAR), to ensure accurate resource estimation. A key competitive advantage is the logistical efficiency derived from strategically located operational infrastructure, which facilitates streamlined stockpiling and distribution. Quality assurance is a core component of the business model, with an in-house laboratory equipped with X-Ray Fluorescence (XRF) machines to conduct comprehensive analysis and verify mineral content before shipment. The enterprise adheres to Good Mining Practice (GMP) principles across its operations. While the primary focus is on mining, the organization's articles of association also permit engagement in holding company activities, sea port services, industrial estate management, and other technical analysis, providing a framework for potential diversification.

Strategic focus in 2024 centered on the theme of "Building a Stronger Foundation," emphasizing the reinforcement of business and operational fundamentals to enhance long-term competitiveness. Key initiatives included improving operational efficiency, optimizing infrastructure such as hauling roads and logistics systems, and strengthening corporate governance through enhanced transparency and accountability. The market strategy prioritizes the domestic market, securing long-term partnerships and exclusive contracts with key customers to mitigate price volatility and ensure demand stability. In response to market dynamics, the organization has focused on cost-efficiency strategies, including optimizing labor productivity and controlling expenses across all operational lines. Looking ahead, the business strategy involves a commitment to strengthening the implementation of Environmental, Social, and Governance (ESG) principles as a long-term foundation, with specific aims to improve waste management and increase energy efficiency across all operational processes. This approach is designed to build a resilient and sustainable production foundation adaptable to future market changes.

The corporate governance framework is built on a two-tier board structure, comprising a Board of Directors and a Board of Commissioners responsible for management and oversight, respectively. As of year-end 2024, the Board of Directors consists of 8 members, while the Board of Commissioners has 3 members, including 1 independent commissioner, which satisfies the regulatory requirement of at least 30% independence. The Board of Commissioners is supported by an Audit Committee and a Nomination and Remuneration Committee. Governance practices are formalized through charters for the Board of Directors, Board of Commissioners, and its supporting committees. In 2024, the Board of Directors convened 12 internal meetings and 3 joint meetings with the commissioners, while the Board of Commissioners held 4 internal meetings and 3 joint meetings. The leadership philosophy is guided by "Jeong-Do Management," an ethical business framework adopted from LX International that emphasizes integrity, transparency, and compliance. This philosophy is integrated into the company's anti-corruption policies and business ethics programs.

The organization's sustainability initiatives are structured around key environmental, social, and governance pillars. Environmental stewardship is demonstrated through a comprehensive reclamation and revegetation program for mined-out areas, which includes backfilling, land contouring, and the planting of pioneer and local endemic species. Energy efficiency efforts include the use of solar panels for nighttime lighting and the adoption of LED technology. Social responsibility programs focus on community development through initiatives such as providing free medical services, food package assistance for flood victims, and scholarship assistance for the Langgikima Student Association (HIMALA). A strong commitment to workplace safety is evidenced by the achievement of a Zero Accident Award for the 2021–2023 period from the Ministry of Manpower. Governance practices are reinforced by a formal whistleblowing system accessible via a dedicated email address and a robust anti-corruption policy. The company's commitment to fiscal transparency and compliance was recognized with a Top Taxpayer Contribution Award from the Directorate General of Taxes.

Following the company's Initial Public Offering on January 9, 2024, a significant change in the ownership structure occurred. On January 16, 2024, PT Energy Battery Indonesia, an entity designated by LX International Corp, acquired a controlling stake and became the new controlling shareholder. As of year-end, PT Energy Battery Indonesia holds a 60% interest. Other major shareholders include PT Sungai Mas Minerals with a 10.43% stake and PT Inti Mega Ventura with a 9.57% stake, while the public holds the remaining 20%. The organization has one operational subsidiary, PT Terum Konawe Utara, in which it holds a 99.99% interest. This subsidiary, which focuses on port services activities, was acquired in 2023 from PT Sungai Mas Minerals and PT Inti Mega Ventura, which were related parties at the time of the transaction. This acquisition was accounted for as a business combination of entities under common control.