• Good Corporate Governance
• Risk Management System

Effective Risk Management for secure operations

MMP implements a comprehensive and integrated risk management system to mitigate and manage various inherent and external risks throughout its entire business activities. The risk management system aims to protect and increase MMP's value in the eyes of stakeholders. MMP consistently evaluates and improves the implementation of its risk management system.

Risk Profile

MMP has identified 3 (three) main risk types with significant impacts to its business continuity, as follows:

• Market risk

  Risk that arises from the use of financial instruments, such as fluctuations in currency exchange rates and interest rates generated from operating activities, investment activities, as well as funding activities.

• Credit risk

  Risks that may arise because MMP has trade receivables.

• Liquidity risk

  Risk that arises when MMP may not be able to meet its current obligations.

Mitigation Efforts

MMP has implemented the following mitigation efforts to address the risks identified in its risk profile:

• Market risk

  MMP settles all of its transactions in rupiah currency and chooses funding options that offer a combination of volatile and fixed interest rates.

• Credit risk

  MMP has implemented a strict policy of only allowing receivable transactions with reputable and credible third parties.

• Liquidity risk

  MMP persistently maintains adequate reserves, bank facilities, and loans by monitoring projected and actual cash flows, as well as combining the maturity of financial assets and liabilities.