In 2021, the Company faced uneasy business challenges (uncertainty). The COVID-19 pandemic has significantly affected the Company’s performance, resulting in a decrease in the number of metal production and the disturbance in the supply-demand to the manufacturing industries with the increase in the tin metal price up to the highest USD 41000 per MT in November 2021 as opposed to the lowest point in January 2021 under the rate of 20965 per MT. A constellation of regulation changes within the country has also affected some changes in external contexts. In addition, the non-optimal performance of production tools and the increase in production costs also contributed to the decrease in the Company’s performance, besides the positive impacts on the increase in the tin metal price.
In accordance with the business uncertainty above, for the achievement of targets in the Corporate Work Plan and Budget (RKAP) 2021, the Company and its subsidiaries need to seriously optimize the risk management processes in every step of its business processes. The implementation of effective risk management sufficiently guarantees the achievement of the Company’s goals. In this section, the commitment of the Board of Directors through the Risk Management Division of The Company provides an overview of the risks and mitigations or monitors the evaluation in the current year.
The Bases of Risk Management Implementation
• The Board of Directors’ Decree No. 47/Tbk/SK1000/17-S11.2 in 2017 with the change of nomenclature into the Risk Management Division.
• Company Regulation No. 011/Tbk/PER-0000/19-S11.1 Dated December 31 st, 2019, Concerning the Guidelines of Risk Management of PT TIMAH Tbk.
• Reference and Implementation of ISO 31000:2018 Risk Management – Guidelines.
• Regulation of the Minister of State-Owned Enterprises No.PER-01/MBU/2011 concerning Good Corporate Governance in State-Owned Enterprises.
Implemented Risk Management System
Risk management is part of Governance, Risk, and Compliance(GRC) to fulfill the principles of good corporate governance, in accordance with the Regulation of Minister of State-Owned Enterprises No. PER-01/MBU/2011 amended with the Regulation of Minister of State-Owned Enterprises No. PER-09/MBU/2012 concerning Amendment on the Regulation of Minister of StateOwned Enterprises No. PER-01/MBU/2011 concerning Good Corporate Governance for State-Owned Enterprises.
The implementation of the risk management system in the Company refers to the Risk Management System of ISO 31000:2009 Risk Management – Principles and Guidelines that have been updated into ISO 31000:2018 Risk Management Guidelines.