The Honorable Stakeholders,
The Performance of 2018
May I, on behalf of the Board of Commissioner extend our highest appreciation to the Management, who made an excellent Achievement in year 2018, 20,83% growth of Sales, more than triple National GDP Economic growth and improvement of 25.37% Net Profit compared to 2017 which is much higher than the industry standard.
On top of it, the Company had entered a "New Episode", it is reflected in 2 iconic events.
Firstly, successful Management transition in May 2018.
Secondly, entering new business in FSRU (Floating Storage Regasification Unit) as the new decade "bread and butter" for HITS, post Ekaputra era, the 125k M3 Ekaputra LNG Carrier was the largest LNGC in the world in the late 80’s.
The Strategic Issue of 2019
The strategic issue of 2019 in board perspective is "How to Manage Growth'?
The impact of Growth is on Liquidity. The Board is assisting and encouraging the Management in 2019 to seek alternatives of project financing, including Go Public of subsidiary to maintain the sustainable growth at double digit level.
Another concern of Growth is "Risk". To cope with this, Board had envisioned the management to move forward in 2019 from ‘Shipping Business into Distribution of Energy’.
In fact, the business of LNG Infrastructure in Regasification and storage business combined with the Fuel Oil shipping will account for majority of the Company income at the beginning of next decade.
That's why, Board is now hand in hand with the Management to:
1. Achieve Growth,
2. Transform the business in order to manage risk/ exploit opportunities, and
3. Finally tackle the liquidity challenge.
Monitoring & Supervision
The Board of Commissioner which often under The Traditional concept, named as Supervisory Board, in reality is functioning more than such task.
The role of the Board in 2018 is going to be intensified in 2019 in line with the rule (POJK) set up by the OJK (Financial Service Authority).
As an Audit Committee, in practice we do more Preventive Risk Management approach instead of the post action audit done by the Public Auditor.
As a Nomination & Remuneration Committee, by fact we work together with the Management, to develop the people and organization so that everyone will be able to be nominated as future CEO, and to propose the fit remuneration to motivate financially and so fulfill their esteem needs.
Dealing with GCG & CSR
As a frontrunner in dealing with GCG (Good Corporate Governance) and CSR (Corporate Social Responsibility). We have set up the GCG & CSR Committee, which is not really required by OJK rule in 2019, but has to be reported in 2020.
The yardstick we flash for those activities is to maintain a balance interest of PPP (People, Profit, Planet).
The practice of GCG should not be contravene to the norm, fair practice and Regulation and also Law.
While the Policy of CSR is more into human Development as a center of Human life. That's why it is really wise for the Company to continuously strengthen its existing Business of Crewing, Training, Education and Shipping Management to support future Development and National Program of Maritime Toll.
Parenting & Coaching Role
Last but not least, as mentioned clearly that BOC is not only limiting its role as stated by regulation as a "Supervisory Body" but be proactive to preserve the legendary growth, by supporting management with:
• Energizing and Encouraging,
• Enlightening and Empowering.
The approach is not just by Supervising or Controlling but even more by "Coaching And Parenting".
By performing those roles, the Board will continuously support management week by week, either in formal meeting or informal interaction.
The Board of Commissioners directly briefs and advices at each Performance Meeting and Strategic Meeting. Beside briefing through face-to-face meetings, the Board also conveyed his directions and advice in writing, using internal memos, especially when there were issues or business opportunity that needed more intensive attention.
During 2018, the Board of Commissioners attended the Performance Meetings and Strategic Meetings 12 times. The directives in the form of memos have been issued by the Board of Commissioners 6 (six) times, both for the Company and subsidiaries.
Changes in the Composition of the Board of Commissioners
In 2018, there has been a change in the Board of Commissioners of HITS with the same composition: A Chairman and an Independent Commissioner based on Extraordinary General Shareholders Meeting on May 9th, 2018.
The Chairman was entrusted to Theo Lekatompessy replacing Sumardjono which his service has expired. The Independent Commissioner also changed from previously held by HM Roy Sembel to Arief Rudianto.
The changes were made to refresh and improve the performance of the Board of Commissioners in the future. The Company expresses its deepest gratitude for the dedication of Mr. Sumardjono and Mr. HM Roy Sembel for their contributions while holding the position as the Company's Board of Commissioners.
We wish all the Best to the Management for 2019.
And Our Thanks to the Stakeholders especially our Partners, Costumers, Supplier, Bankers, Auditors, Lawyers for their favorable and endless support (as always).
May God Bless all of Us.