The land business run by PT Adaro Persada Mandiri ("APM") and its subsidiaries (Adaro Land) is an integral part of the Group's business which plays a strategic role in supporting the mining and non-mining sectors through various products and services. Adaro Land has diverse business segments that create synergies that produce competitive advantages, cost efficiency and quality excellence. The description below explains Adaro Water's five main business lines:
Through the Land Services & Land Information Services (LASER & LIS) directorate, APM and its subsidiaries provide integrated land management services (LMS), integrated land spatial data management (ALMIS) and land data storage and documentation (ALDAS).
Through the Asset Management Development & General Affairs directorate, APM and its subsidiaries provide project management services for infrastructure development and maintenance, and provision, rental, management and renovation of assets such as land, property and other operational support assets.
Through the Agribusiness directorate, APM and its subsidiaries provide quality organic seeds and fertilizer to support revegetation activities for the companies within the Group, in addition to carrying out pre-mining land protection activities with area management based on agribusiness cultivation according to the designation and permits on AI’s lands. The Plantation Directorate provides services for managing oil palm plantations owned by the companies within the Group.
Through the Watershed Rehabilitation directorate, APM and its subsidiaries provide services for implementation management, monitoring and evaluation for the watershed rehabilitation projects of the companies within the Group. In addition, there is also Reclamation directorate, which provides revegetation services on ex-mining land as part of fulfilling the reclamation obligations of companies in the mining segment.
Through the Forestry Assets directorate, APM and its subsidiaries manage forest concessions for ecosystem restoration activities and carbon sequestration initiatives.
In general, the land business process is described as follows:
Land and Asset Management
APM is the parent company of the subsidiaries under Adaro Land. APM focuses on providing land management services, infrastructure development, and asset leasing and operations. Land management services also include land document archiving and management services as well as land information system services for companies within the Group, while asset management services also include asset procurement and facility management.
Land management services consist of integrated services and include Land Management Services (LMS) with services such as land strategic consultancy, land acquisition, land juridical secure, and land status integrity assessment, which have been developed to meet the land-related needs of companies within the Group, including the data and legality. This service is expected to be a one stop solution and provide support to the Group. APM also provides integrated spatial data management services through the Adaro Land Management Information System (ALMIS) as well as land document storage and management services through Adaro Land Documentation and Archiving Services (ALDAS), which is a land document storage and management service performed according to Archives standards National Republic of Indonesia (ANRI).
In asset management services, APM carries out infrastructure development/construction and asset procurement, while Asset Operations is tasked with providing asset procurement/rental services and asset/facility management services. Some of the assets that have been built and are currently managed include the bridge on AI’s hauling road, housing for BPI employees in Batang, Central Java, the 150-Ha RISA Industrial Area in Balangan, South Kalimantan, as well as the management of office buildings for the locations of both AAI Group and Adaro Group in Banjarmasin and Jakarta, such as AI’s office and dormitory in Banjarbaru, Graha Saptaindra on Jalan TB Simatupang, Jakarta, and several stories of space in Cyber 2 Tower and in Menara Karya on Jalan Rasuna Said, Jakarta.
Agribusiness and Biomass
PT Agri Multi Lestari (“AML”) is APM’s subsidiary operating in the agribusiness and plantation operational services sector. Currently AML's agribusiness activities are focused on providing organic fertilizer and seeds that support AI's revegetation activities. AML strives to provide good quality organic seeds and fertilizer needed and improve the success of revegetation projects. AML also provides organic fertilizer and seeds for planting activities on Adaro Land’s forestry assets, in addition to developing a new business line to provide biomass products in the form of woodchips. This biomass product will be mixed with coal for co-firing activities at the Group's coal-fired power (CFPP) plants.
Currently AML can produce organic fertilizer up to 700-800 tons/year and liquid organic fertilizer of 60,000 – 65,000 liters/year. AML also has modern a nursery with a production capacity of around 900,000 seeds/year. AML's nursery is equipped with state-of-the-art technology with Ellepot machines and uses paper pots instead of polybags, in order to be more environmentally friendly. In the biomass sector, AML is building a woodchip plant to support the co-firing activities of the CFPP of PT Makmur Sejahtera Wisesa (MSW). To provide woodchips as biomass, AML uses existing plants, for example rubber, in non-operational areas at AI as well as the PT Laskar Semestar Alam and PT Semesta Centramas (BCC Group) areas which are waste in the mining process. This means, the materials previously considered waste are managed to become something of value for the interests of the Group. To ensure sustainability, AML plans to build an energy plantation concept in the Company's oil palm plantations because oil palm plants have now entered their unproductive age. The energy garden will be built by planting biomass plants that have a high calorie content (>4,200 Kcal/kg) such as calliandra and gamal.
Forestry Services
PT Rehabilitasi Lingkungan Indonesia ("RLI") is a company engaged in forestry projects, especially related to planting and maintenance on post-mining land and on critical lands in the watershed areas. The planting and maintenance of plants on post-mining lands by RLI are carried out to support AI's fulfillment of its post-mining obligations. This project is carried out in the form of revegetation activities on reclaimed land. The watershed rehabilitation activities are carried out to support the fulfillment of the obligations of the companies holding Forest Area Use Approval (PPKH). These two projects carried out by RLI play a strategic role in the compliance of the companies within the Group, especially those operating in the coal mining segment.
Revegetation activities are part of reclamation activities to repair and restore vegetation damaged by mining activities. This activity starts from land arrangement, planting, plant maintenance to land handover activities according to the standards set by the Ministry of Energy and Mineral Resources (ESDM). To date, RLI has planted revegetation for reclamation obligations covering an area of 1,430 Ha. For watershed rehabilitation activities, out of the total watershed rehabilitation obligations of around 8,604 hectares, 3,245 hectares have been handed over, while the rest are still in the maintenance and preparation stage for land handover.
Forestry Asset Management
APM and its subsidiary companies own several forestry assets, one of which is managed by PT Alam Sukses Lestari (“ASL”). The forestry assets owned are in the form of Forest Utilization Business Permits for environmental service utilization activities in the form of environmental restoration covering an area of around 19,520 Ha. This concession area is located in East Barito Regency, Central Kalimantan Province, at KM 17-38 of AI’s hauling road. APM subsidiary PT Hutan Amanah Lestari ("HAL") also has a forestry asset of the Forest Utilization Business Permit for the utilization of carbon absorption and/or carbon storage covering an area of + 25,800 Ha. This concession area is located in South Barito Regency and East Barito Regency, Central Kalimantan Province, at Km 5-17 of AI’s hauling road. Based on a feasibility study and the internal team's calculation using a methodology approved by the Directorate General of Climate Change Control – Ministry of Environment and Forestry, these two assets have an average emission reduction potential of around 873,980 TCO2e/year.
APM and its subsidiaries strive to expand their business lines in the field of forestry asset management to other regions by applying for Forest Utilization Business Permits through other subsidiaries, such as PT Cakra Wana Lestari (CWL), PT Persada Wana Lestari (PWL), and PT Mandiri Wana Sustainable (MWL). This is an effort to achieve greener Adaro and contribute to Nationally Determined Contribution (NDC) achievement from the Forestry and Other Land Use (FOLU) sector.