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As anticipative measure and response to the external conditions, the Company constantly attempts to ensure subsidized fertilizer availability, manages the controllable cost and optimize market opportunities. NPK product sales in 2013 on the whole was not yet optimum, but sales to food sector still managed to exceed the target, which was 120,122 tons, or 120.1 % of the target. The achievement was partly supported by GP3K Program that considerably managed to increase farmers’ awareness to carry out balanced fertilization with NPK fertilizer. While for non-subsidized sector, sales realization was 27,121 tons, or 11.79 % of the target.

Pupuk Kaltim has already owned the permit for waste water disposal from Ministry of Environment in accordance to the decree of Environment Ministry. Currently, Pupuk Kaltim has managed to respond to customers’ complains. In 2013, 80% of total complains were responded and dealth with, the company planned to finish the rest of the complain in 2014.

Ammonia production for 2013 increased to 1.94 million ton, higher by 33.6 thousand to or 2% than production of 2012. Each ammonia plant managed to produce ammonia above installed capacity. Total ammonia production achievement in 2013 was the highest production since the Company’s establishment. Export market that reminds open might be serve as booster for the Company’s performance in the future. For international market, Fertilizer Industry Association gas predicted that fertilizer demand will increase 2.4% in 2014, not least from South Asia region.

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To prepare the Company organizational composition complete with elaboration and its duties. To offer explanation on anything inquired or asked by members of Board of Commissioners and Shareholders. To draft and define blue print of Pupuk Kaltim organization. To exercise other obligations as governed by the Articles of Association and decided by GMS in reference to the prevailing laws. Yy Kaltim-5 Plant Construction The investment was plant construction to replace Kaltim-1 and to increase urea and ammonia production capacity.

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Cash and cash equivalents, trade receivables, subsidy receivable, others receivable, non-trade receivables to related parties and other current financial asset included in this classification. The consolidated statements of cash flows are prepared based on the direct method by classifying cash flows into operating, investing, and financing activities. Yy Economic Empowerment The company is committed to empowering the local resources potential in order to foster the economy of the local communities. Yy Synergy and Partnership Enhancement The company is committed to attaining a synergy between its resources, the communities and the government in order to create a harmonization. Pupuk Kaltim has designed its’ business activities to be escorted by a high corporate social responsibility towards the community and environment. The company hoped to be able to grow along with the improvement of the lives of the community while establishing a good relationship with the stakeholders.

Risk control in Pupuk Kaltim consists of risk avoidance, risk mitigating, risk sharing, risk taking. Measured risk control in IV trimester of 2013 is presented in table below. Risk management is implemented to provide sufficient confidence for Pupuk Kaltim in determining measures for the Company’s sustainability and improvement amid business environment fluxes. Yy Annual Report Award Pupuk Kaltim in 2013 won the first rank Category Private Non-Financial Listed in ARA 2012. The Corporate Secretary is responsible for providing recommendations to the Board of Directors whether information or a development categorized as material information.

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