The Board of Commissioners strongly supports the Company's initiative to utilize refuse-derived fuel (RDF) as an alternative fuel. The use of RDF, which has been in place since 2020, is not only a solution for efficient use of fossil fuels, but also one of the decarbonization initiatives outlined in SBI's 2030 Sustainability Road Map.

The Company's pioneering role in converting waste into RDF is now widely recognized. With government support, the Company has established partnerships with a number of local governments and private entities to manage municipal waste, which will be used as an alternative fuel in the cement production process at the Company's plants. It is hoped that the use of RDF as a partial substitute for fossil fuels will also be followed by other industries so that efforts to reduce CO2 emissions to support Indonesia's target of achieving net zero emissions by 2060 will have a more significant impact.

The company has established partnerships with a number of local governments and private entities to manage urban waste into alternative fuel for cement production. This initiative has been recognized by the government, including the Ministry of Environment and Forestry (KLHK), which invited the President Director of SBI to give a presentation at a talk show themed “Zero Waste and Zero Emission Goals on Municipal Solid Waste” at COP28 UNFCCC UAE Dubai.

Another important achievement that deserves high appreciation is the success of the Company's four factories in obtaining Green PROPER from the Ministry of Environment and Forestry. This achievement can be interpreted as external recognition of the Company's consistency in conducting ethical business and being responsible to the environment and society. The Board of Commissioners supports the Board of Directors' commitment to realizing and implementing a sustainable green industry.

Economic growth and business activity momentum appear to have begun slowing in the second half of 2023. One of the factors triggering the economic slowdown is the perception of uncertainty ahead of the general election, which has caused economic actors to adopt a cautious stance in view of the possibility of changes in the economic agenda and a number of regulations. This wait-and-see position is expected to continue at least until the new government is elected. However, based on the potential of the domestic economy, Indonesia's economy in 2024 is still expected to grow strongly at 5.2%.

Relatively stable inflation, the knock-on effects of the 2024 elections on public and government consumption, and the government's property sector policies to help reduce the housing backlog will be the driving factors for growth in 2024. In response to global uncertainty, which is expected to continue, the government has directed the 2024 State Budget to mitigate external turmoil and accelerate inclusive and sustainable economic transformation.

Against this optimistic external backdrop, the Board of Commissioners believes that the Board of Directors has systematically and consistently implemented business strategies to support the organization's growth based on the concept of sustainable development. The cement industry continues to have promising prospects for the future, even though challenges will continue to exist. The Board of Commissioners hopes that the Board of Directors can take advantage of opportunities in the market, including the export market, while remaining vigilant against potential risks and ensuring the Company's strong fundamentals to achieve sustainable business growth in the future.

The Board of Commissioners continuously encourages the implementation of governance in the Company through an effective management system accompanied by a process of supervision, evaluation, and continuous improvement to maintain the alignment of good corporate governance (GCG) practices with best practices and the latest changes.

The Board of Commissioners continues to remind the Board of Directors to always strengthen GCG and operational integrity and to pay attention to all of the Company's operational processes and activities. In performing its supervisory function over the implementation of GCG practices, the Board of Commissioners is supported by the Audit Committee. The Audit Committee assists in reviewing the Company's financial statements, the independence of public accountants, the adequacy of risk management and internal controls, and the Company's compliance with applicable laws and regulations.

Periodically, the Board of Commissioners receives the results of evaluations on the effectiveness of internal control and risk management conducted by the Audit Committee in collaboration with the Internal Audit Division, Internal Control System (ICS) Function, and Risk Management Function. The evaluation results and recommendations for improvement are submitted to the Board of Directors for follow-up. Based on these evaluation results, the Board of Commissioners assesses that, in general, the implementation of GCG in the Company has been running well and effectively. This assessment is in line with the 2023 GCG assessment results based on the ASEAN Corporate Governance Scorecard criteria issued by the Indonesian Institute for Corporate Directorship (IICD) with a score of 88.76 points and an interpretation of “Good”.

In particular, the Board of Commissioners appreciated the success of the Company and its five subsidiaries, namely PT Solusi Bangun Andalas, PT Solusi Bangun Beton, PT Readymix Concrete Indonesia, PT Pendawa Lestari Perkasa, and PT SBI Bangun Nusantara in obtaining SNI ISO 37001:2016 Anti-Bribery Management System (ABMS) certification as a manifestation of the strong commitment of the entire Company to create a clean, ethical, and corruption-free corporation.