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1 1 ANNUAL REPORT 2020 PT ADARO ENERGY TBKPARTNERS IN THE CAPITAL MARKETMitRA pAsAR ModAlADARO ENERGY S FINANCESkeuAngAn AdARo eneRgyCORPORATE GOVERNANCEtAtA kelolA peRusAhAAnSUSTAINABLE DEVELOPMENTpeMbAngunAn yAng beRkelAnjutAnANNUAL REPORT 2020 LAPORAN TAHUNAN 202022020 Laporan Tahunan pT adaro EnErgy TbkA SnApShot of AdAro EnErgy SEkiLaS adaro EnErgyoUr pEopLETiM kaMiMAnAgEMEnt rEportLaporan ManajEMEnthE pit-to-powEr BUSinESSbiSniS dari TaMbang SaMpai pEMbangkiT LiSTrikiannuaL rEporT 2020 pT adaro EnErgy TbkpArtnErS in thE CApitAL MArKEtMiTra paSar ModaLAdAro EnErgy S finAnCESkEuangan adaro EnErgyCorporAtE goVErnAnCETaTa kELoLa pEruSahaanSUStAinABLE dEVELopMEntpEMbangunan yang bErkELanjuTandear Sir and Madam, We are delighted to present the 2020 edition of PT Adaro Energy Tbk s Annual Report. We chose the theme Staying resilient and reliable through the headwinds , to share what we did to stay resilient and reliable while sailing against the headwinds in one of the most difficult years for most of the business world.

2 The year 2020 was unique, as the whole world suddenly had to face something that we had never experienced before. The COVID-19 pandemic came and dominated the world s affairs, forcing all parties from governments, world organizations, businesses, to individuals to put everything else aside and unite and work hand-in-hand to fight in a war against an enemy that was unseen, yet very powerful. The COVID-19 pandemic created potentially destructive headwinds, demanding businesses to stay resilient in order to survive. Companies are required to make massive adjustments and carefully develop strategies to keep the business going while protecting their people from the exposure to the corona virus. Some companies, including the well-established ones, had to either close down or reduce the size of their business or workforce or cut their employees compensation. At Adaro, we very carefully maneuvered through the headwinds as we were determined to stay reliable for our people, our businesses, and our stakeholders.

3 We took all necessary measures to ensure that our people stayed healthy and the impact of the pandemic to our business was minimized. Every day, we closely monitored the situation in Indonesia and the world and acted accordingly. Now we can say that we are proud that we have not laid off any employee, we have not cut any compensation, we have been reliable to both our partners, vendors and customers, and we have managed to contribute tremendously to our surrounding communities and the nation in the effort to prevent and handle the spread of this pandemic. As you review this report, you will see how our business model, our countermeasures, and our strategies have kept us afloat. Although the pandemic is not over yet, we foresee recovery in the near future and remain hopeful of our bright prospects. We hope this report will build more in-depth understanding of the Adaro Group and the operations of its eight business pillars, which consist of coal mining and non-coal mining businesses.

4 We strive to disseminate timely, balanced and relevant information to help capital market participants to make well-informed investment decisions. Adaro Energy s 2020 Annual Report will also be accessible on our website and made available as an application you can download on the Apple Store and Google PlayStore. Please do not hesitate to contact us at should you have any questions or require additional information. Sincerely, Corporate Secretary and Investor Relations DivisionBapak dan ibu yang terhormat, Dengan ini kami sampaikan Laporan Tahunan PT Adaro Energy Tbk edisi tahun 2020. Kami memilih tema tetap Kokoh dan Andal di tengah terpaan Badai , untuk berbagi mengenai apa yang kami lakukan untuk tetap kokoh dan andal ketika mengarungi badai di salah satu tahun tersulit bagi dunia bisnis. Tahun 2020 adalah tahun yang unik, karena seluruh dunia tiba-tiba harus menghadapi sesuatu yang belum pernah kita alami sebelumnya.

5 Pandemi COVID-19 datang dan mendominasi urusan dunia, memaksa semua pihak dari pemerintah, organisasi dunia, dunia bisnis, sampai individu untuk mengesampingkan semua hal lain dan bersatu dan bergandeng tangan untuk memerangi musuh yang tak terlihat, namun sangat kuat. Pandemi COVID-19 menciptakan angin badai yang berpotensi merusak, yang memaksa bisnis untuk menjaga resiliensi jika ingin bertahan. Korporasi harus membuat penyesuaian di sana sini dan menyusun strategi dengan hati-hati agar bisnis tetap berjalan dan di saat yang sama juga melindungi para karyawan dari paparan terhadap virus corona. Beberapa perusahaan, bahkan yang sudah mapan, harus berhenti atau mengerucutkan bisnis atau jumlah karyawan atau memotong kompensasi karyawan. Di Adaro, kami bermanuver melalui badai ini dengan sangat hati-hati karena kami bertekad untuk tetap andal bagi para karyawan, bisnis dan pemangku kepentingan kami.

6 Kami menempuh semua langkah untuk memastikan bahwa para karyawan tetap sehat dan dampak pandemi ini terhadap bisnis diminimalkan. Setiap hari, kami memantau situasi di Indonesia maupun dunia dengan seksama dan mengambil tindakan sesuai situasi tersebut. Sekarang kami dapat berbangga bahwa kami belum mem-PHK-kan satu karyawan pun, kami belum memotong kompensasi apa pun, kami tetap andal bagi para mitra, vendor, dan pelanggan, dan kami dapat berkontribusi besar terhadap masyarakat sekitar serta negara dalam upaya pencegahan dan penanggulangan pandemi Anda membaca laporan ini, Anda akan melihat bagaimana model bisnis kami, langkah-langkah kami, dan strategi kami membuat kami tetap bertahan. Walaupun pandemi ini belum selesai, kami memperkirakan adanya pemulihan dalam waktu dekat dan tetap memiliki harapan akan prospek yang cemerlang. Kami harap laporan ini akan membangun pemahaman yang lebih dalam mengenai Grup Adaro dan operasi dari delapan pilar bisnisnya, yang terdiri dari bisnis pertambangan batu bara dan non pertambangan batu bara.

7 Kami berupaya menyampaikan informasi secara tepat waktu, seimbang, dan relevan, untuk membantu para pelaku pasar modal membuat keputusan investasi yang didukung oleh informasi yang benar. Laporan Tahunan 2020 Adaro Energy juga akan dapat diakses di situs perusahaan dan disediakan dalam bentuk aplikasi yang dapat diunduh di Apple Store dan Google PlayStore. Untuk pertanyaan dan informasi lebih lanjut, mohon hubungi kami di Hormat kami, Divisi Corporate Secretary and Investor RelationsWELCOMESALAM!ii2020 Laporan Tahunan pT adaro EnErgy Tbk01A SnApShot of AdAro EnErgy SEkiLaS adaro EnErgy03 Adaro Energy at a glanceMengenal adaro Energy07five-year financial & operational highlightsringkasan keuangan & operasional Lima Tahunan11why invest in Adaro Energy?Mengapa berinvestasi di adaro Energy?19 Corporate profileprofil perusahaan21 Events and Awards 2020kaleidoskop & penghargaan Tahun 202002 MAnAgEMEnt rEportLaporan ManajEMEn27 Letter from the CommissionersSurat dewan komisaris31 Letter from the directorsSurat direksi03thE pit-to-powEr BUSinESSbiSniS dari TaMbang SaMpai pEMbangkiT LiSTrik41 Corporate overviewTinjauan umum korporasi49 Coal industry overviewTinjauan industri batu bara55overview of Adaro MiningTinjauan adaro Mining56pT adaro indonesia60balangan Coal Companies60adaro MetCoal Companies62pT Mustika indah permai & pT bukit Enim Energi63kestrel Coal resources64pT bhakti Energi persada65overview of Adaro ServicesTinjauan adaro Services65pT Saptaindra Sejati67 Coaltrade Services international pte.

8 Adaro jasabara indonesiaCONTENTSdAftAr iSiiiiannuaL rEporT 2020 pT adaro EnErgy Tbk71the Adaro group s Coal resources and reservesSumber daya dan Cadangan batu bara grup adaro85overview of Adaro LogisticsTinjauan adaro Logistics86pT Maritim barito perkasa88pT harapan bahtera internusa88pT indonesia Multi-purpose Terminal89pT indonesia bulk Terminal90pT Sarana daya Mandiri91pT puradika bongkar Muat Makmur92pT barito galangan nusantara93overview of Adaro powerTinjauan adaro power94pT Makmur Sejahtera Wisesa94pT Tanjung power indonesia95pT bhimasena power indonesia97overview of Adaro waterTinjauan adaro Water99overview of Adaro LandTinjauan adaro Land103overview of Adaro CapitalTinjauan adaro Capital105overview of Adaro foundationTinjauan adaro Foundation107 Management discussion and Analysisanalisis dan pembahasan Manajemen04oUr pEopLETiM kaMi125 Management profilesprofil Manajemen137human resourcesSumber daya Manusia151 Management StructureStruktur Manajemen05 CorporAtE goVErnAnCETaTa kELoLa pEruSahaan06 SUStAinABLE dEVELopMEntpEMbangunan yang bErkELanjuTan215 CSr and Adaro foundationCSr dan adaro Foundation223health, Safety & Environment (hSE) kesehatan, keselamatan kerja & Lingkungan hidup07pArtnErS in thE CApitAL MArKEtMiTra paSar ModaL245 Shareholder information 2020informasi pemegang Saham 2020249investor relationshubungan investor08 AdAro EnErgy S finAnCESkEuangan adaro EnErgy255 Consolidated financial Statements Laporan keuangan konsolidasian411 Statement of responsibility for Ar 2020pernyataan Tanggung jawab atas Laporan Tahunan 2020iv2020 Laporan Tahunan pT adaro EnErgy TbkDISCLAIMER.

9 FORWARD-LOOKING STATEMENTSpErnyAtAAn BErwAwASAn KE dEpAnThis annual report contains forward-looking statements that relate to future events that are, by their nature, subject to significant risks and than the statements of historical facts, all statements contained in this report, which include without limitation those regarding the company s future financial positions and results of operations, strategies, plans, objectives, goals and targets, future developments in the markets where the company participates or is seeking to participate, and any statements preceded by, followed by or that include the words believe, expect, aim, intend, will, may, project, estimate, anticipate, predict, seek, should or similar expressions, are forward-looking future events referred to in these forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond the control of the company, which may cause the actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements as a result, among other factors, of changes in general, national or regional economic and political conditions, changes in foreign exchange rates, changes in the prices and supply and demand on the commodity markets, changes in the size and nature of the company s competition, changes in legislation or regulations and accounting principles, policies and guidelines and changes in the assumptions used in making such forward-looking relying on forward-looking statements.

10 You should carefully consider possible such risks, uncertainties and events, especially in light of the political, economic, social and legal environment in which Adaro Energy and its subsidiaries and affiliates Energy makes no representation, warranty or prediction that the results anticipated by such forward-looking statements will be achieved, and such forward-looking statements represent, in each case, only one of many possible scenarios and should not be viewed as the most likely or standard , you should not place undue reliance on any forward-looking tahunan ini mengandung pernyataan berwawasan ke depan yang terkait dengan peristiwa masa depan yang dipengaruhi risiko-risiko dan ketidakpastian yang pernyataan fakta historis, seluruh pernyataan dalam laporan ini, yang termasuk namun tidak terbatas pada posisi keuangan dan hasil operasi, strategi, rencana, tujuan, sasaran dan target, perkembangan masa depan di pasar tempat perusahaan berusaha atau berencana untuk berusaha, dan pernyataan-pernyataan yang diawali atau diikuti dengan atau mengandung kata yakin, memperkirakan, menargetkan, bermaksud, akan, dapat, memproyeksikan, mengestimasi, mengantisipasi, memprediksi, mencari, seharusnya, atau ungkapan-ungkapan serupa, merupakan pernyataan berwawasan ke masa depan yang dimaksud dalam pernyataan berwawasan ke depan ini mengandung risiko yang dikenali maupun tidak dikenali, ketidakpastian dan faktor lainnya, yang sebagian di luar kendali perusahaan sehingga dapat menimbulkan perbedaan material antara hasil.