Board of Directors Report

Dear Shareholders and Stakeholders,

Various dynamics and challenges arising during the course of 2020 certainly brought significant impacts on many sectors, both globally and nationally. Nevertheless, we as the Company’s Board of Directors are grateful that WIKA BETON can overcome these challenges and record stable performance achievement with the support of appropriate strategic steps and wellprepared mitigation efforts. With all the achievements made during the year, we are proud to be able to carry out our strategic role to realize the targets and plans in the spirit of achieving the Company’s vision to become a leading company in the fields of Engineering, Production, and Installation (EPI) in concrete industry in Southeast Asia.

All strategic efforts as well as the achievements that have been carried out and made showed our resilience in providing added value to stakeholders. To further fulfill our integrity and responsibility, allow us, the Board of Directors of PT Wijaya Karya Beton Tbk, to submit an annual report containing the Company’s activity highlights, recapitulation of performance, and achievement of targets throughout the year.

The Company’s commitment to maintaining long-term business continuity is accompanied by an understanding of the significance of Good Corporate Governance implementation as a mechanism that is not only of compliance in nature, but also as a means to provide added value for WIKA BETON. The management seeks to build and strengthen a culture of GCG awareness in order to maintain integrity and accountability, implement sound corporate principles, and avoid fraudulent practices within the Company.
Global and National Economic Development

The global outbreak of the Coronavirus Disease 2019 (COVID-19) in the beginning of 2020 impacted significantly on the growth of world’s economy as a whole. By the end of the year, there were 218 countries that had experienced the impact of the health crisis and a substantial decline in economic activity. This became the negative sentiment involved in the IMF projection for global economic growth which contracted by -4.4%, a decrease of 0.8 points compared to the estimation made in June 2020.

The developed countries group experienced the heaviest economic hit until the first half of 2020 with economic contraction reaching -5.8%, a significant decrease compared to the 2019 economic growth recorded at 1.7%. Decline in economic growth was also experienced by the developing countries group which reached 3.3% in 2020 compared to the 3.7% growth recorded in 2019.

Due to this global situation, the national economic performance was also unable to escape the adverse effects of Covid-19. As reported by the Statistics Indonesia (BPS), the domestic economy in the third quarter of 2020 contracted by 3.49% (yoy) compared with the third quarter of 2019. In terms of production, the lowest contraction in economic growth came from the transportation and warehousing business field amounting to 16.70%. Meanwhile, in terms of expenditure, the component of goods and services exports contracted the lowest by 10.82%.

By December 2020, the inflation rate was recorded at 0.45% with the cumulated inflation rate for the period of January to December 2020 reaching 1.68%. The low rate of inflation was caused by weakening domestic demand due to Covid-19, consistency of regulator’s policies in directing inflation expectations, and maintained stability of Rupiah exchange rate. The inflation rate in December 2020 based on the expenditure group came from the food, beverage and tobacco group at 0.38%, followed by the transportation group at 0.06%.

The stability of Rupiah exchange rate in 2020 was supported by the stabilization measures taken by Bank Indonesia, as well as the continued foreign capital inflows to the domestic financial market. As of December 2020, Rupiah depreciated around 1.72% compared to the level recorded in 2019. Although the volatility of Rupiah exchange rate was at the level of 16.3%, this was lower than the volatility of currencies of peer countries, such as the Brazilian Real (BRL), South African Rand (ZAR), and Turkish Lira (TRY), which were recorded at 30.6%, 23.8%, and 19.3%, respectively.

As a response to the impact of the Covid-19 pandemic, the government prepared National Economic Recovery (PEN) programs to restore the Indonesian economy, which would engage the production and consumption sectors of the community. As of November 2020, 62.1% of the budget for the PEN program had been realized or had reached Rp431.54 trillion. The government also issued a fiscal stimulus to encourage economic growth in the community through tax exemptions in certain sectors for 6 months. Through these policies, it is hoped that the government can assist the liquidity of companies affected by the Covid-19 virus outbreak.

Analysis on WIKA Beton’s Performance in 2020

The global and national economic conditions, as well as the precast concrete industry conditions which were also affected by the Covid-19 pandemic, affected the performance achievement of WIKA BETON at a certain level. The tendency of public and private project owners to postpone their projects resulted in a decrease of market demand for concrete products. This situation caused plant utilization to decline and the absorption of production results was not optimal. Hence, the Company took several steps to adjust plans and prepare strategies that were more accommodating and relevant to the existing conditions.

In reviewing the external conditions, the Company had revised its Work Plan and Budget (RKAP) in August 2020 by taking into account the assumptions and conditions that had occurred. Amid the unfavorable economic conditions and tightening competition in the precast concrete industry, the Company managed to record positive performance, both in terms of operations and finance. In 2020, the installed capacity of the Company's precast concrete plant was 4,422,550 tons. The readymix production capacity in 2020 was 3,108,574 tons, while the quarry production capacity was 1,259,429 m³. In terms of service production, the Company was able to complete 17 innerbore projects, 268 installation services projects, and 7 construction services projects.

Despite the declining performance of precast concrete production in 2020, the Company's operational performance remained relatively strong due to the support of other business lines, namely service operations (piling, installation, and construction services), and material management (quarry, ready-mix, and other materials). By the end of 2020, the Company was successful in targeting markets with fewer competitors and acquired a number of projects, both from the government and the private sector. Meanwhile, in terms of material management performance, the Company was supported by an extensive market share, one of which was PT Wijaya Karya (Persero) Tbk (WIKA) as the parent company. WIKA’s steps in completing existing projects in synergy with its subsidiaries provided opportunities for the Company to acquire new projects and achieve higher productivity.

On financial front, the Company’s financial performance is reflected on its Consolidated Financial Statements for the year ended on December 31, 2020. As of the end of the year, the Company was able to book Revenues of Rp4.80 trillion, an increase of 32.19% from Rp7.08 trillion recorded in 2019. This was mainly caused by the concrete business segment which contributed 84.12% to the Company’s overall Revenues achievement. Meanwhile, our quarry segment demonstrated a decline in Revenues reaching Rp30.31 billion, down by 59.77% from Rp75.35 billion recorded in 2019, and contributed 0.63% to the overall Revenues of the Company. The service business segment, which is one of the core lines of our EPI (Engineering. Production, and Installation) business, was able to record Revenues of Rp732.25 billion compared to the Rp992.48 billion Revenues of 2019, or a decline of 26.22% with 15.25% contribution to the overall Revenues. These achievements were the results of WIKA BETON’s efforts in optimizing the existing precast products with the dominance of Operating Revenues reaching 65% and the development of ready-mix, quarry, and service businesses, such as Gantry Launching, Post-tension, Inner and Prebore Design, Diesel and Hydraulic Hammer, as well as new business applications, including Trackwork, Structural Health Monitoring System, and Prefabricated Houses.

The Company’s performance achievement amid the uncertainties due to the Covid-19 pandemic was inseparable from the hard work of all its elements as well as the implementation of appropriate, relevant, and measured strategic steps. This implementation was also accompanied by the efficiency efforts undertaken in several fields, which drove the cost reduction within the Company in a healthy and fair manner and enabled the Company to maintain its profitability. Up to the end of 2020, the Company managed to book Profit for the Year amounting to Rp123.15 billion, a decline of 75.89% from Rp510.71 billion recorded in the previous year.

In line with the decline in profit and loss performance, the performance of the Statement of Financial Position has also experienced a similar indication. This is reflected in the Company’s Total Assets as of December 31, 2020, which reached Rp8.51 trillion, declined by 17.69% from Rp10.34 trillion recorded in 2019. This was mainly caused by a decrease of 26.79% in Current Assets of the Company, from Rp7.17 trillion recorded in 2019 to Rp5.25 trillion in 2020. Total Equity of the Company in 2020 was recorded at Rp3.39 trillion, a decline compared to that of the previous year which was recorded at Rp3.51 trillion.

In order to maintain strong liquidity, the Company always strives to keep positive cash flow through close monitoring every month. In 2020, these efforts succeeded in encouraging the Company to achieve a positive operating cash flow amounting to Rp803.26 billion, although it decreased from the previous year of Rp1.13 trillion. The Company will continue to maintain its liquidity to remain strong by maximizing payments and accelerating the disbursement of receivables through Supply Chain Financing. Thus, working capital can be strengthened, interest costs can be reduced, and dependence on credit/loans can be minimized properly.

Strategies and Policies Undertaken

The dynamics of change in the VUCAD (Volatility, Uncertainty, Complexity, Ambiguity, and Disruption) era, which were later influenced by the outbreak of the Covid-19 pandemic, prompted the Company to enhance prudent and careful calculations in carrying out and formulating targets, plans, and strategic steps going forward. In anticipating the impact that will occur, especially due to the external conditions, the Company shall seek to balance the increasing need for risk mitigation measures in every decision taken. Various efficiency efforts in encouraging the optimization of all Company’s aspects have been carried out.

Taking into account the Company’s external and internal conditions, we had prepared the 2020 Work Plan and Budget (RKAP) containing a series of comprehensive strategies, plans, and targets for operational and financial performance for 2020. The strategic steps taken were translated into the 2020 Corporate Strategy. In terms of Production and Sales, the Company took several strategic measures, including strengthening the mutually beneficial synergies with the WIKA Group, improving market approaches through precast and non-precast business lines, selecting markets and products that generate high profitability, opening new sales areas with geographic area grouping, as well as carrying out further development of the business of piling, precast concrete installation, post-tensioning, and production support materials.

In line with the revised sales target set out in the revised 2020 RKAP, the Company carried out another series of strategic steps, including implementing a cost reduction (efficiency) program in all business units of the Company, maximizing sales of old contracts, ensuring payment by performing goods delivery control procedures, monitoring production and distribution schedules to control inventory and to accelerate the schedules as required, optimizing resources that provided maximum benefits, securing clauses in contracts related to recognition of production, distribution, and installation progress, and accelerating billing process. The Company also aimed its focus on markets where the quality and competence of the Company’s products were superior; on WIKA’s markets that encourage the ready-mix and quarry business lines; and on new non-WIKA markets’ that prioritize the Operational Services and New Business in order to elevate the diversification and profitability of the Company. We also continued to encourage sales of products that can provide good returns.

To optimize financial performance, the Company always maintains the stability and growth of its share price and plans business activities as well as possible so that the balance of debts and receivables can be ensured. In addition, the Company continuously strives to maximize receivables disbursement to maintain receivable balances and impairment expenses and to propose relaxation of funding facilities to maintain the flow and availability of cash. In the future, the Company shall seek new funding sources with competitive interest rates to strengthen its capital.

In the increasingly developing digital technology era, the Company always makes an effort to integrate digital innovation into its business processes in order to support business efficiency and effectiveness. With regard to this matter, the management decides to carry out a strategic digitalization initiative, especially in the aspect of Supply Chain Management (SCM). This digitalization will later encourage the efficiency of supply chain processes, support the effectiveness of distribution and procurement, and reduce the life of inventory in plants. This effort shall further strengthen WIKA BETON’s commitment to the utilization and implementation of Information Technology (IT) in the overall business processes of the Company.

Human Capital management, as part of the Company’s business support function, has always been one of the priorities of the Company. Even though the management decided not to carry out recruitment process in 2020, the Company continues to implement comprehensive HR management, among others, by enhancing HR competencies in accordance with the work field to anticipate changes and developments in the business environment.

Comparison between Targets and Realizations

With reference to the predetermined targets, the Company continued to evaluate the achievement of these targets as a material for consideration in determining targets for the following year. Even though the external business conditions were not yet fully conducive, the Company was still able to obtain positive results supported by the proper strategy implementation throughout the course of 2020.

In the revised 2020 RKAP, the Company set a target for New Contracts in 2020 of Rp5.26 trillion. By the end of 2020, the target was realized at 81.31% or Rp4.27 trillion. From the financial perspective, the Company recorded total sales of Rp4.80 trillion, realized at 96.34% of the target of Rp4.99 trillion. This achievement led to the Company obtaining a profit before tax of Rp130.50 billion, or reaching 102.01% of the target of Rp127.93 billion. The financial balance of the Company showed that the acquisition of the Company’s assets as of December 31, 2020, reached Rp8.51 trillion or 96.20% of the targeted Rp8.84 trillion.

In terms of financial ratios, the Company’s net profit margin was recorded at 2.56% of the target set in the Revised 2020 RKAP at 2.15%.These achievements spurred the Company to obtain a score of 72.00 with "HEALTHY A" predicate as stipulated by Decree of the Minister of SOE No. KEP-100/MBU/2002 dated June 4, 2002 on Assessment of Soundness of State-Owned Enterprises, above the target stated in Revised 2020 RKAP at 69.00 with "Healthy A" predicate.

Challenges/Obstacles Faced and the Resolutions

The Company’s business continuity throughout 2020 faced a number of challenges and obstacles; one of those was the outbreak of COVID-19 pandemic, which caused uncertainties in both the global and national business environment. Furthermore, the enactment of the ASEAN Economic Community (AEC) and the ASEAN China Free Trade Area (ACFTA) increased competition in the precast concrete industry due to policies that allow similar products to enter Indonesia without import duties. Amid such increasingly fierce competition, there was a potential tendency for BUMN Karya (Construction SOEs) to prioritize their respective precast products; hence, improvement efforts were strongly required to leverage the quality and market share of the Company.

Reflecting on the existing challenges, the Company has reviewed and compiled a number of strategic steps in a comprehensive manner to maintain its position and sustainable growth, and to create better achievements going forward. The strategic steps taken in resolving these challenges include:

  • Digitalizing and optimizing supply chain management (SCM) to support cost reduction (efficiency).
  • Preparing and implementing business diversification and product innovation to support core businesses.
  • Strengthening synergy and mutually beneficial collaboration with the WIKA Group and strategic partners for the purpose of developing and expanding the Company’s operations.
  • Updating the competencies of Company’s Human Capital, especially in the service, ready-mix, and quarry sector.
  • Establishing a mobile plant as a price competition solution while promoting cost reduction.
  • Accelerating the development of Digital Marketing to increase customer engagement and brand awareness of WIKA BETON.
  • Strengthening the existence of the corporation in the readymix, quarry, service, and post tension businesses by making it a profit center.
Awards Received in 2020

The integrity, hard work, and dedication of all personnel and elements of WIKA BETON succeeded in bringing the Company to a number of awards as a form of recognition of external parties for the Company’s performance in 2020, as follows:

  • Two Safety Performance awards from Asosiasi Ahli K3 Konstruksi (A2K4) for PPB Karawang and PPB Bogor.
  • Two Bronze Winner medals for the sub-categories of Print Media and Website, and Silver Winner medal for the subcategory of Social Media in the Public Relations Indonesia Award 2020 event
  • Two awards from BUMN Track and Arrbey Consulting as the Best Limited Liability Company in the category of Business Innovation.
  • Top Leader on CSR Commitment 2020 and Top CSR Awards 2020 from Top Business Magazine.
  • Listed as one the 50 Best of the Best Awards 2020 of Forbes Indonesia version.
  • 2nd Best Public Company in the category of Building and Construction with Gold Award in the Indonesia Finance Award III 2020 event organized by the Economic Review Magazine.
  • Two awards from BUMN Track as the Best CMO BUMN Global Branding and Marketing Award, category of Corporate Marketing, and BUMN Marketing Award, category of International Sales and Marketing.
  • The Big 9 IT for Public Company in the category of Building and Construction with Gold Award from the Economic Review Magazine.
  • Four awards of the Best Governance Disclosure for Issuer in the Basic Industry Sector, the Best Social Disclosure for Issuer in the Basic Industry Sector, the Best Environmental Disclosure for Issuer in the Basic Industry Sector, and the Best ESG Disclosure for Issuer in the Basic Industry Sector, in the Environmental, Social & Governance (ESG) Awards 2020 organized by Bumi Global Karbon Foundation (BGKF) and Investor Magazine.
2021 Business Outlook

Even though the Company’s business conditions were rife with dynamics and uncertainties in 2020, the Company remains optimistic for 2021 with the spirit of improvement and the strength of corporate transformation. These shall be done through a series of policies and strategic steps, taking into account the projections of global and national economic conditions, as well as the construction and precast concrete industries.

The projection of global economic growth, which is estimated to grow limited to the level of 5.5%, is an opportunity for increased world economic activity after the doors to the economy in various countries have reopened in line with the decline in the Covid-19 cases. In line with the increase in the global economic growth projection, the national economic growth is predicted to recover by 5%. This optimism is spurred by the better management of Covid-19, supported by the government’s policy to issue a fiscal stimulus for economic recovery.

As part of the continuation of the National Medium-Term Development Plan (RPJMN) and Long-Term Plan (RJP), the government’s commitment and focus to continue the nation’s infrastructure development will always be in line with the improvement in the national economy outlook. This projection is supported by the establishment of a focus on infrastructure development, aimed at providing basic services and improving connectivity by 2021.

The policy direction for the infrastructure budget for 2021 will focus on continuing the infrastructure development after the Covid-19 pandemic, including strengthening digital infrastructure as well as improving logistics efficiency and connectivity. In addition, the development of health facilities and provision of basic necessities has become one of the government’s efforts which support the strengthening of the national health system. These factors provide more opportunities for WIKA BETON to penetrate and encourage better business growth in the coming year.

On the internal front, the management has encouraged and optimized all relevant functions in order to strengthen WIKA BETON’s future business prospects. These functions are, among others, the Business Development Bureau and the Research and Development Bureau which shall continue to intensively conduct studies and planning in order to seek opportunities to develop new business lines and strengthen partnerships. Various external factors as well as internal studies are then outlined in the 2021 RKAP for references, which shall also contain the Company’s focus and achievement targets in the short-medium term, as follows:

  1. Optimization of core and supporting businesses by conducting joint operations with several companies in the construction sector.
  2. Sustainable innovation by creating market opportunities or new products.
  3. Market penetration into the Southeast Asia region in synergy with WIKA as the parent entity.
  4. Business integration and synergy with the WIKA Group in directing investment and contract acquisition and sales.
  5. Review and determination of the right investment that can support the achievement of sales and profits.
  6. Implementation of health governance in the New Normal corridor in the corporate environment, in accordance with the applicable health protocol.
  7. Optimization of IT implementation in every business line and process carried out.

Armed with the strategies that have been implemented during the fiscal year as well as a series of strategies designed for the coming years, we hope that WIKA BETON will be better prepared to welcome sustainable business growth supported by more mature capacity and planning as well as a more optimal approach.

Review on Good Corporate Governance Implementation

The Company’s commitment to maintaining long-term business continuity is accompanied by an understanding of the significance of Good Corporate Governance implementation as a mechanism that is not only of compliance in nature, but also as a means to provide added value for WIKA BETON. The management seeks to build and strengthen a culture of GCG awareness in order to maintain integrity and accountability, implement sound corporate principles, and avoid fraudulent practices within the Company.

In line with the 2019-2023 governance roadmap, the direction of Company’s GCG implementation and development in 2020 was in the phase of GCG Governed which focused on strengthening the GCG implementation mechanism, socializing GCG to parent entity, subsidiaries, and business units, developing GCG structures, and compiling subsidiary governance. In addition, as a continuous effort to improve GCG, the management has followed up on areas of improvement from the GCG assessment carried out in the previous year.

The Company also seeks to optimize the supervision and assessment of the effectiveness of GCG through internal and external audit functions, which are then reported regularly to the Board of Directors and Board of Commissioners. The external audit function is then used to ensure the accountability and independence of financial reporting pursuant to the prevailing laws and regulations. In improving the implementation of GCG in the future, the Company will strengthen its soft structure and policy tools, and update the GCG guidelines through an application that can facilitates the dissemination of information related to GCG and its measurement tools.

WIKA BETON's consistency in supporting the improvement of GCG in the future is shown by maintaining the GCG Assessment Value in 2020 which is the same as the GCG assessment result in 2019, namely 89,936 with "Excellent" predicate. Such achievement is a reflection of the Company’s commitment to implementing best practices of GCG and to continuously supporting sustainable development in the upcoming years.

Risk Management Implementation

The uncertain business conditions as well as external and internal challenges encourage us to always strengthen the anticipatory measures and the ability and risk resilience of the Company. To that end, a comprehensive risk management is properly developed and implemented to ensure the creation of a risk culture as a business fundamental which will influence riskbased decision making and integrate the balance between risk profile and adequate control (risk and control) in every business process carried out.

Starting from the assessment of the effectiveness of risk management in 2019, during the course of 2020, the management has perfected and compiled a series of programs to minimize the gaps that may occur. The programs implemented include enhancing the understanding of risk management for all staff (risk owners) through ongoing risk management training in collaboration with external consultants in the field of risk management, enhancing the understanding of risk management for partners in order to equalize perceptions and knowledge regarding risk control, and integrating management reporting with the existing Operational System (OS).

Human Capital

The strategy to optimize the Company’s elements to maintain business stability amid challenging external conditions encourages WIKA BETON to strengthen its Human Capital as a supporting aspect as well as catalyst for its business continuity. Continuing the Human Capital transformation steps that have been launched, Human Capital development in 2020 was focused on sustainable development through CMC (Coaching, Mentoring, and Counseling) method as an effort to increase productivity and enhance understanding between generations so that the regeneration and succession processes can be carried out properly. Along with these steps, the Company implemented another Human Capital priority program namely the development and review of organizational structure so that organizational needs can be in line with the direction of expanding business development.

As a work unit that is specifically responsible for Human Capital development and management, the Human Capital Bureau has conducted a workload analysis as a mechanism for assessing and measuring the adequacy of ideal Human Capital in a work unit. Through this measurement, the remuneration determination can be adjusted to each job value in order to create an objective and fair assessment. This mechanism will support WIKA BETON’s efficiency efforts in the future and can become a solution for us in responding to the cost leadership issues faced as an experienced company.

To support the initiatives and efficiency efforts undertaken, the Company decided not to conduct recruitment process in 2020 and to optimize the existing human capital by considering the needs of the Company’s organization.

Information Technology

The development of WIKA BETON’s information technology aspect in 2020 was adjusted to the Information System Strategic Long-Term Plan as stated in the Company’s IT Roadmap, which always adapts to the conditions of the Covid-19 pandemic in terms of its implementation. Due to the current situations, the development of information technology was focused on the digitalization of the Company’s business processes to face the new normal era. One of the forms of utilization was the efficiency conducted in the procurement process and control in Supply Chain Management (SCM). IT utilization and development in 2020 also prioritized the efforts to strengthen the digitalbased marketing aspects, which had entered phase 2 along with the implementation of the Data Recovery Center. In line with the rapid development of technology, the Company encouraged investment in the information technology aspect so as to be able to maintain relevance to its existing needs without neglecting an adequate internal audit function.

Meanwhile, in support of the Company’s needs amid the New Normal era, the Information Systems Bureau always seeks for relevant solutions and innovations; one of which is the development of applications as the Company’s tool in dealing with new habit adaptations. Applications that have been developed include the Online Attendance with a check-in and check-out system for employees working from home using the WTON Mobile platform, the WTON Visitor application for guests visiting the office area and the Company’s work units by implementing health protocols and attaching biodata and rapid test results as requirements, as well as the Covid-19 SelfAssessment Application for Company’s employees to be able to identify early and limit the possibility of Covid-19 spreading within the Company’s area.

Corporate Social Responsibility

The responsibility of WIKA BETON as part of a global entity is the background for the implementation of Corporate Social Responsibility (CSR) by strongly upholding the principle of compliance with the applicable norms and regulations. As determined in the Company’s 2020-2023 CSR Roadmap, the fulfillment of corporate responsibility carries a holistic approach and framework in accordance with ISO 26000 and the Sustainable Development Goals (SDGs), which integrate the interests in seeking profit with the interests in preserving the environment (planet) and welfare of the community (people), all with the supported of Good Corporate Governance (governance).

Social Responsibility to the Environment

The Company understands that its operations have both direct and indirect impact on the environment. Therefore, we are committed to carrying out and fulfilling our responsibility to the environment by making efforts to conserve and manage environmental impacts in order to achieve a sustainable future condition.

The measurement and management of environmental impacts are realized through regular monitoring at the head office, PPB, and projects, application of environmental quality standards, renewal of permits for the use of natural resources, and compliance with environmental monitoring documents, such as Environmental Impact Analysis (AMDAL) as well as Environmental Management and Monitoring Efforts (UKL-UPL).

The Company also performs environmentally- friendly or green corporate operations by implementing systematic management of material, waste, and effluent aspects, implementing 3R (Reduce, Reuse, Recycle) concept, and ensuring efficiency in energy and water consumption. In line with this commitment, the Company has implemented a standardized work program for Wastewater Treatment Plants throughout its operational areas. This effort is a manifestation of the Company’s commitment to supporting the fulfillment of environmental quality standards in each working area.

Social Responsibility in Manpower and Occupational Health and Safety Fields

In line with its commitment to the creation of excellent and high-quality human resources, the Company continues to balance the fulfillment of its responsibilities, especially in the aspects of manpower and HSE. This is realized through the implementation of education and training programs for the Company’s Human Capital that are tailored to each employee’s competency with the achievement of employee training hours reaching 2,393 hours for male employees and 215 hours for female employees in 2020.

In fostering a culture of occupational health and safety, the Company has also renewed the Occupational Safety and Health Management System (OHS Management System) certification in 10 (ten) concrete plants of WIKA BETON while implementing a safety culture that is always supported by adequate safety facilities and regular HSE training and dissemination programs. These efforts have succeeded in encouraging WIKA BETON to maintain zero fatality in all operational area and to record 17,351,181 working hours without incident.

Responsibility in Social and Community Development

Embarking from the four pillars of Strategic Corporate Social Responsibility activities, WIKA BETON has implemented various programs through the framework of WTON Peduli, WTON Pintar, WTON Sehat, and WTON 3R. The implementation of this responsibility is a manifestation of the Company’s integrity towards the SDGs and the efforts to optimize positive impacts on the community and the environment. By the end of 2020, the Company spent Rp3.67 billion to carry out all CSR programs and activities.

Changes in the Composition of Board of Directors

There was a change in the composition of Company’s Board of Directors in 2020. In line with the Resolution of 2020 Extraordinary General Meeting of Shareholders (EGMS) dated August 4, 2020, the Company resolved to respectfully dismiss Mr. Mursyid from his position as the Company’s Human Capital and Production Director. The EGMS also approved the changes to the Nomenclature of Board of Directors’ Position up to December 31,2020, as follows:

Position Name
President Director Hadian Pramudita
Finance, Human Capital, and Risk Management Director Imam Sudiyono
Marketing and Development Director Kuntjara
Operations and Supply Chain Management Director I Ketut Pasek Senjaya Putra
Engineering and Production Director Sidiq Purnomo
Appreciation and Closing

Despite various challenges and uncertainties faced throughout 2020, the enthusiasm, optimism, and performance achievements of WIKA BETON did not weaken. This year’s accomplishments were undoubtedly inseparable from the contribution, dedication, and hard work of all parties of the Company. Hence, we would like to express our gratitude to all WIKA BETON’s employees for their efforts and hard work given during the year. We are also grateful for the suggestions, advice, and recommendations from the Board of Commissioners, especially in fulfilling the check-and-balance process at the Company. We would also like to convey our appreciation to shareholders, stakeholders, and business partners for their loyalty and trust which always drive us to continuously show the best performance and deliver remarkable achievements.

We hope that all of us will always be given the strength to grow sustainably so that we can achieve our common goals.

Jakarta, April 2021

On behalf of the Board of Directors of PT Wijaya Karya Beton Tbk,

Hadian Pramudita

President Director