The attempt made by the Company in managing risk in its business activities includes:
A. Main Risks to the Company's Business Continuity
1. Risk of CPO Commodity Market Price Fluctuation
The risk of fluctuations in CPO ASP price cannot be avoided by the Company. However, the Company tries to overcome this by using the average price method for approximately 8 days as the basis for determining sales prices with long-term partners.
B. Business Risks Relating to the Company's and Subsidiaries' Business Activities
1. Investment Risk or Corporate Action
The Company will design investments or corporate action plans by including financial and legal consultants with the precautionary principle to anticipate any obstacles in their implementation.
2. Business Competition Risk
The Company will always strive to improve its competitive advantage while maintaining a good relationship with suppliers and customers so that they can continue to compete. In addition, the Company also has an operation team that regularly monitors and improves the production process providing the best quality product.
3. Risk of Failure to Obtain Permits Required for Business Activities
The Company will continue to communicate intensively with all elements in the Central Government and Regional Governments so that they can continue to comply with all current and future laws and regulations.
4. Risk of Technological Change
To deal with the risk of technological change, the Company's Subsidiaries always try to update and perform routine maintenance on all the technology used so that it can support the business activities of the Subsidiaries.
5. Climate or Weather Risk
The Company and its Subsidiaries always strive to utilize data and study the cycles of climate and weather changes in the past to minimize the impact of climate or weather risks on crops.
6. Risk of Availability of Resources
The Company and its Subsidiaries will ensure the adequacy of the working capital needed to anticipate disruptions in delivery and availability of raw materials.
7. Social and Employment Risk
The Company and its Subsidiaries will always maintain communication with the community and regional heads in the operational areas of the Company and its Subsidiaries.
8. Risk of Rising Interest Rate Movements
The Company and its Subsidiaries will always exercise control over their debts by making timely payments so that the debt ratio of the Company and Subsidiaries remains at a stable level.
9. Risk of the Impact of the Covid-19 Virus on the Company
The Company continues to maintain the health of its employees by continuously requiring the implementation of health protocols in the Company's business lines. The Company continues to actively conduct antigen/PCR swab tests every 2-week period.