AlamTri's Risk Management

The business and operational activities of PT Alamtri Resources Indonesia Tbk (“AlamTri" or "the Company") and its subsidiaries continuously integrates risk management (RM) into operational activities under a systematic risk management framework built on risk management policy, standard, and technical guidelines imposed across the organization. The implementation of risk management in decision making on all operational activities is supported by the risk management organs consisting of Board of Directors, the Board of Commissioners through the Audit Committee, the Risk Management Department, and Risk Champions, to ensure healthy and sustainable growth of the AlamTri Group.

Risk Management Standard

AlamTri adopts ISO 31000:2018 - Risk Management Guidelines, comprising three key components of risk management principle, framework, and process, which are the bases of AlamTri’s risk management policies and standards.

Role Assignments or RM Organs: The Three Lines Model

To support the effective implementation of the risk management process, AlamTri Group adopts a clear governance structure through the three lines model. The three lines model is applied to determine the parties who are assigned with the role to manage, monitor, and provide risk assurance independently. This model consists of:

1. First Line is the risk owners, i.e. all divisions at the parent company and subsidiary levels, which have immediate responsibility to identify, assess, and control risks in their respective operational area. At each subsidiary, the company has appointed Risk Champions to take the role as the main motor of RM process implementation, by facilitating and discussing the development with the subsidiaries’ BoD on a regular basis.
2. Second Line is AlamTri Group’s Risk Management Department and relevant corporate function, which develops policies, guidelines, and monitoring on risk management. AlamTri Group’s Risk Management Department regularly coordinates with the Risk Champions at all subsidiaries, compiles the Group’s consolidated risk reports, and submits risk profile updates to the BoD and Audit Committee.
3. Third Line is the Internal Audit Division, which provides an independent assurance on control system and risk management effectiveness through audit activities and recommendation submissions to the BoD and the company’s management. In addition, assurance can be provided by external parties such as external auditors.

Risk Profile

At the end of 2025, the AlamTri Group had eight key risks consisting of one risk at the critical level HSE risk and seven risks at the high level (project risk, regulatory changes risk, macroeconomic risk, weather risk, product quality risk, and business interruption risk). The explanation on each of the key risks and the mitigation actions is presented can be found on Annual Report page 254-258.

Strengthening Environmental Performance and Climate Change Mitigation Actions

AlamTri has established a firm commitment to integrating sustainable and environmentally responsible business principles into all operational activities as part of its corporate policy. This policy emphasizes environmental preservation, resource efficiency, occupational health and safety, and community empowerment, with the objective of generating long-term benefits for the environment and communities surrounding operational areas. AlamTri’s environmental policy is aligned and integrated within the Company’s Quality, Occupational Health and Safety, and Environmental Policy Statement.

The implementation of this environmental policy is carried out consistently in compliance with prevailing laws and regulations. This approach reflects AlamTri’s commitment to environmental protection, minimizing operational impacts, and strengthening corporate accountability as a responsible environmental steward. Further information can be found in the Sustainability Report on pages 110-113.