In carrying out its business, the Company is faced with various kinds of risks described in Chapter VI of the Prospectus on Risk Factors. To minimize these risks, the Company conducts risk management, among others :
- Government Regulatory Risk Mitigation
To reduce risks related to Government regulations, the Company has a special department for legal and government relations. This makes it possible to react quickly to any regulatory changes that arise and proactively prepare for any adjustments to those changes. In addition, so far the Company has always maintained a good relationship with related institutions so that it can always get updates if there are planned changes to applicable regulations. - Material Transport Risk Mitigation
To mitigate the risk of material transportation. The Company identifies and selects transportation routes that have been adjusted with permission from the Ministry of Transportation, as well as carrying out routine maintenance on transportation vehicles to ensure safe vehicles, the Company also has a system (GPS) that can monitor the routes of material transportation vehicles. In addition, the Company has plans to add vehicles to facilitate operational activities. Business Competition Risk Mitigation
To minimize the risk of business competition, the Company always makes efforts to improve the quality and scope of services provided as well, improve the efficiency of work processes, and always innovate in the provision of services so that the Company has added value, service standards, and high competitiveness.Risk Mitigation Technology Development
The Company’s industry is an industry that will continue to develop from time to time. Seeing this, the Company always makes adjustments to new technology. The Company chooses high quality and modern laboratory testing equipment that will make efficiency and able to produce more accurately.Human Resource Risk Mitigation
Mitigating risks related to human resources, the Company implements strategies such as investing in employee training and development, enhancing employee retention initiatives, planning, improving communication, and providing competitive compensation and benefits packages. This strategy helps the Company retain skilled employees, reduce costly loss of skills and knowledge, boost morale, and ensure continuity and quality of the Company’s services.Legal Risk Mitigation
To overcome legal risks where lawsuits or lawsuits exist, the Company conducts Good Corporate Governance and uses a team of professional legal professionals who are competent in their fields who can provide input and implement and launch compliance activities and conduct their business prudently in accordance with the provisions of laws and regulations set by the Government.Risk Mitigation of Macroeconomic or Global Conditions
The Company strives to continuously monitor the condition of the Indonesian economy in order to anticipate the decline in demand for the Company’s products.Risk Mitigation of Indonesia’s Political Conditions
To reduce the risk of political conditions in Indonesia, the Company must maintain close monitoring of political developments in Indonesia, invest in a deep understanding of environmental and business regulations, and build strong relationships with local governments and regulatory authorities. In addition, companies must have contingency plans and flexible strategies to deal with possible political and regulatory changes.Investment Risk or Corporate Action
In order to raise additional capital to support the Company’s business activities, the Company may increase capital without preemptive rights or increase capital with preemptive rights. In the event of a public offering without preemptive rights, the shareholder’s ownership percentage at that time will be diluted at any such capital increase. In the case of capital increase with preemptive rights, the percentage of ownership of existing shareholders at that time will be diluted, unless such shareholders choose to participate in capital increases with preemptive rights which will require additional capital deposits from such shareholders to the Company. Therefore, there is a possibility that the Company’s shareholders cannot maintain a percentage of their ownership in the Company at all or without payment of additional funds to participate in the capital increase with preemptive rights.