Dear Valued Shareholders,

The Company is committed to providing maximum service, while remaining aligned with the regulations and guidelines set by the Government. Despite facing various challenges, the Company remains optimistic and dedicated to contributing to the country's development by continuing to provide the best services and meeting customer needs.

During 2023, the Company's Board of Directors fulfilled its duties and responsibilities by managing the company in accordance with the established plans and targets. We are grateful to report very positive service revenue achievements as a form of accountability to stakeholders and society

Strategic Policy
Indonesia, as a maritime country, offers excellent business prospects. As a strategic step, the Company has implemented consolidated transportation capacity additions. In 2023, the addition of 2 vessels increased the Company's fleet carrying capacity by 1320 TEUs or 26,952 DWT. The investments made in that year are expected to develop the Company's business capacity, especially in the Maritime Transportation sector, and increase productivity and cargo volume in 2024.

Additionally, as part of the commitment to meet the needs of the community, the Company actively supports the Sea Toll program initiated by the Government, aimed at supporting distribution activities across Indonesia. This year, the Company served 9 (nine) Sea Toll routes, namely:
Route H-4 with the Tanjung Perak - Sorong - Tanjung Perak route.
Route H-5 with the Tanjung Perak - Merauke - Agats - Timika (Pomako) - Tanjung Perak
route.
Route T-9 with the Tanjung Perak - Wasior - Nabire - Serui - Tanjung Perak route.
Route T-17 with the Tanjung Perak - Saumlaki - Dobo - Tanjung Perak route.
Route T-18 with the Tanjung Perak - Badas - Bima - Tanjung Perak route.
Route T-21 with the Tanjung Perak - Namlea - Tanjung Perak route.
Route T-31 with the Tanjung Perak - Reo - Tanjung Perak route.
Route T-32 with the Tanjung Priok - Pulau Baai - Tanjung Priok route.
Route T-34 with the Tanjung Perak - Nunukan - Tanjung Perak route.
This is evidence that the Company supports the government's program in improving connectivity between islands in Indonesia.
 

Along with the era of digitization demanding speed in everything, the Company has been undergoing digital transformation and automation since 2021 with the formation of KlikTemas. As a continuation of this digital transformation, during 2023, the Company continued to develop the KlikTemas system to provide the best experience for customers in making reservations, checking schedules, and shipIn addition to KlikTemas, the Company also strengthened the TIMES system to improve coordination and collaboration between departments, thereby achieving an 'on-time schedule' on every Company ship schedule.
 

In the future, the Company will carry out developments in the financial sector, by creating a Billing System to increase work efficiency in the Accounts Receivable (AR) & e-commerce section in the Integrated Service Place (TPT) section. In the logistics sector, the Company will develop a Catalog System with the hope of increasing inventory management efficiency, product availability accuracy, and expediting the goods delivery process.

Furthermore, the Company has also implemented digitalization in the Human Resources field by using the Talenta program, which provides features to support Human Resources management functions within the Company and improve operational efficiency. With these steps, the Company is committed to continuing to innovate in embracing the digital era and strengthening its position as a leader in this industry.

This year, the Company has been actively involved in various business developments, including in the Depot and Warehouse sectors. One of its initiatives is the construction of Depots and Warehouses in Osowilangun, as well as the operation of Depots with international standards in Belawan. This step is expected to support container loading and unloading activities by providing additional container stacking land capacity.

Additionally, the Company is involved in business development through the establishment of new business units, such as PT Temas Depot Jatim, PT Temas Port North Maluku, PT Temas Logistic, PT Temas Energy, and PT Lestari Nasional Gas. With these initiatives, the Company demonstrates its commitment to continuous growth and innovation in providing comprehensive and quality logistic solutions.

Challenges and Obstacle

The uncertain world conditions in 2023, marked by the Russia-Ukraine War, Israel-Palestine War, and China's economic slowdown, significantly impact the global economy, including Indonesia. These impacts affect the Company's performance both directly and indirectly.
Despite facing challenges and difficulties, the Company remains optimistic and committed to contributing to the nation by continuing to provide the best services. This spirit drives the Company to adapt and innovate, maintain operational stability, and make a positive contribution in overcoming the uncertain global economic dynamics.

Business Prospect

The Board of Directors sees that business prospects in the container shipping industry are still very promising. The opening of several new pioneer ports reflects untapped cargo potential. Massive infrastructure development in various regions by the Government is expected to accelerate economic equality across Indonesia, with the emergence of many new industrial areas. Indonesia's positive economic growth trend amidst global uncertainty indicates increased purchasing power of the population. This represents a significant opportunity as it will increase container transport volume to distribute essential goods to the community. The Board believes that with wise and strategic steps, the Company can seize these opportunities to achieve sustainable growth and make a positive contribution to the national economy.

GCG Implementation

The Board of Directors assesses that the implementation of Good Corporate Governance (GCG) throughout 2023 has been in line with the guidance of the Board of Commissioners. GCG principles have been implemented by the GCG organs according to their functions. The Annual General Meeting of Shareholders was conducted well, resulting in several decisions, and attended by Shareholders, the Board of Commissioners, and the Company's Directors. The Board of Commissioners, with the support of the Audit Committee, has effectively carried out supervisory duties. The Corporate Secretary has also performed their duties well, facilitating communication between the Company and stakeholders, and monitoring capital market developments to provide input to the Board of Directors regarding compliance with applicable regulations and laws.

Closing

In conclusion, the Board of Directors would like to express our utmost gratitude to all Stakeholders, the Directorate General of Sea Transportation, INSA, Pelindo, the Classification Agency, customers, and suppliers for the support and cooperation established so far. We also extend our highest appreciation to all Employees, Crew, and the entire Temasian Family whom we are very proud of for their contributions and hard work.

May God Almighty always bless our every effort and work.