Remarks from the Chief Executive Officer
We are committed to further prioritizing and integrating sustainability principles into our business operations and strategic decisions.
Theodorus Ardi Hartoko
Chief Executive Officer
In our second year as a public company, we have increasingly realized the importance of sustainability principles in our business. We recognize that the sustainability of our business is not merely based on financial performance, but also depends on the community and environment in the areas where we operate. Therefore, we have developed various ESG programs based on the understanding that the existence and success of Mitratel as a leading telecommunications infrastructure company in Indonesia depends on the Company’s approach towards the environment, engagement with its employees, good and responsible corporate governance, as well as acceptance from the community.
As a result, we are committed to further prioritizing and integrating sustainability principles into our business operations and strategic decisions. The sustainability principles implemented by the Company are based on Mitratel’s sustainability pillars, which include includes three pillars, namely Right Governance, Right Environmental Approach, and Right Communication (social). The Company believes that implementing these three principles will positively impact the Company and all stakeholders.
Implementation of Sustainability Strategy in 2022
Throughout 2022, the implementation of Mitratel’s sustainability strategy was realized through a series of initiatives to improve sustainability performance in ESG aspects. In terms of environmental aspect, we have carried out several initiatives to reduce our environmental footprint, including replacing VRLA (Valve Regulated Lead–Acid) batteries on rooftop towers with lithium batteries that have longer durability, thus reducing waste. Through various steps taken, we have also reduced our scope 1 emissions by 7.5% from 32,262 tons CO2 in 2021 to 28,899 tons CO2 in 2022. We strive to continue to reduce the number of emissions generated directly from our operations in the future.
In terms of social aspect, we have implemented various Corporate Social Responsibility (CSR) programs in the form of annual work programs that can be accountable to all stakeholders. Our CSR programs have a spirit of empowerment to support business sustainability and value enhancement of the Company.
Mitratel’s CSR programs are carried out in various forms of social activities such as providing assistance to various parties, ranging from religious institutions, social institutions, educational institutions, to assistance for natural disaster victims. Moreover, Mitratel also provides assistance in the form of public infrastructure such as revitalizing public access roads and developing telecommunications facilities.
Mitratel’s commitment to implementing sustainable principles is not only carried out externally through social and environmental responsibility programs, but also internally by carefully considering gender equality, occupational health and safety, and employee competence development.
Internally, we strive to ensure that every employee has equal opportunities for competence improvement, performance review, career development, and receiving compensation and appreciation, as well as fulfilling Occupational Health and Safety (OHS) responsibilities towards all human resources by providing health facilities and implementing occupational health programs. In addition, the Company continuously carries out a series of education and training programs to develop employee competencies.
The improvement of various sustainability performances was also accompanied by progress in economic aspects. Mitratel successfully recorded a revenue increase of 12.5% to Rp7,729 billion in 2022 and thus was able to build a stable and sustainable business environment that considers the interests of all stakeholders, whether they are customers, employees, suppliers, shareholders, the community, or the environment.
In 2022, we made many improvements and enhancements to our sustainability infrastructure and governance. In terms of governance, the development of Mitratel’s 10-year sustainability strategy and roadmap is a significant step towards perfecting the Company’s sustainability governance. The formulation of sustainability policies and strategies involving management and various independent experts is intended as a reference and guide for implementing sustainability initiatives in economic, environmental, and social aspects as mandated by the shareholders of the Company.
In addition, risk management and workplace safety are one of paramount importance to the Company’s business operations. The Company has obtained ISO 31000 Risk Management and ISO 27001:2013 Information Security Management System certifications in order to ensure that these two aspects can be managed and implemented according to the highest standards. In addition, the Company has obtained ISO 45001 Occupational Health and Safety certification and implemented an Occupational Safety and Health Management System (SMK3) as part of its standard operating procedures in order to ensure workplace safety.
The Company’s inclusion in the IDX ESG Leaders Index was one of its primary accomplishments in 2022. This achievement is the culmination of the Company’s vision and mission regarding environmental preservation, social responsibility, and good governance. In addition, this accomplishment represents external recognition of the Company’s hard work and commitment to implementing sustainable and responsible business practices.
Challenges and Plans for 2023
The Company has prepared itself to face various challenges in implementing sustainable financial principles. Mitratel recognizes that in order for the implementation of sustainable principles to run smoothly, greater knowledge and expertise in this area are required. Therefore, the Company is committed to continuously enhancing the sustainability knowledge and skills of all Mitratel employees. In addition, Mitratel acknowledges that economic, environmental, and social risks are inextricable from the Company’s operational processes.
Reflecting on the pandemic situation, where the economic and business climate was shrouded with uncertainty due to the Covid-19 pandemic that began in late 2019, the Company continues to improve risk management implementation within its environment.
In 2023, we see an opportunity to capitalize on existing opportunities. These opportunities have been identified, studied, and will be implemented in the future. It is expected that economic conditions will continue to improve, providing the Company with an opportunity to enhance its overall sustainability performance. The sustainability strategy and roadmap that have been developed will serve as a reference and guide for the Company to implement various sustainability programs. Thus, we will be able to provide a positive and significant impact on all stakeholders.
Indonesia’s resilient economy is expected to continue to grow in 2023. Along with this, the growth of the Information, Communication, and Technology (ICT) industry represents an opportunity for those in the telecommunications infrastructure business. The demand for towers and other telecommunications infrastructure is anticipated to increase in line with the ongoing digital transformation of various societal layers and the development of 5G technology, which necessitates even more dependable telecommunications infrastructure.
This is an opportunity for the Company to enhance its overall sustainability performance through the development of new innovations.
In conclusion, on behalf of the Board of Directors of PT Dayamitra Telekomunikasi Tbk, we express our sincere gratitude and high appreciation to our shareholders, Board of Commissioners, loyal customers, business partners, media, broader community, and all other stakeholders for their support towards Mitratel’s sustainable growth. May the digital era, which offers limitless opportunities, serves as a catalyst for the creation a sustainable future that benefits all parties.
On behalf of Board of Directors of PT Dayamitra Telekomunikasi Tbk
Theodorus Ardi Hartoko
Chief Executive Officer