Jardine Matheson Holdings Limited
Extractive Sector: Payments to Government Report
2023
Introduction
Background
The United
Kingdom ("UK") Reports on Payments to Governments Regulation 2014
(UK Regulations), as amended in December 2015, require UK Companies
in the extractive sector to publicly disclose payments made to
governments in the countries where they undertake extractive
operations. The UK Regulation enacts domestic rules in line with
Directive 2013/34/EU and apply to large UK incorporated companies
that are involved in the exploration, prospection, discovery,
development and extraction of minerals, oil, natural gas deposits,
or other materials. The aim of Directive 2013/34/EU and the UK
Regulations is to enhance transparency in the extractive sector by
imposing reporting requirements relating to payments to
governments.
The UK's Disclosure Guidance and Transparency Rules extend the
disclosure requirements to companies that have securities listed on
a UK regulated market, including Jardine Matheson Holdings Limited
(in which PT United Tractors Tbk and its subsidiaries, direct and
indirect subsidiaries of PT Astra International Tbk (hereinafter
referred as "Astra"), are its subsidiaries).
Reporting Entities
This report
provides an overview of the payments to governments made by PT
United Tractors Tbk and its subsidiaries undertakings, particularly
PT Pamapersada Nusantara and PT Danusa Tambang Nusantara and their
subsidiaries (hereinafter referred to as "UT"), for the year ended
2023 (1st January - 31st December 2023) in respect of their
activities sector which are located in Indonesia.
Extractive Activities
UT, through their subsidiaries, are engaged in extractive
operations as coal and gold mining concession holders in several
locations in Indonesia (North Sumatra, Central Kalimantan, South
Kalimantan and West Nusa Tenggara). PT Pamapersada Nusantara (a
subsidiary of UT) and its subsidiaries are also involved in mining
contracting activities for third parties.
Reporting Principles
Scope and
Validity
This Report discloses payments made to
governments for activities related to exploration, discovery,
development, and extraction for legal entities involved in
extractive activities.
Government
Government
includes any national, regional, or local authority of a country,
and includes a department, agency, or undertaking (i.e. state-owned
entity) controlled by that authority.
Project
Payment types
are required to be reported by project. A project is defined as the
operational activities that are governed by a single contract,
license, lease, concession, or similar legal arrangements and form
the basis for payment liabilities with a government. If multiple
and such agreements are 'substantially interconnected', they are to
be treated as a single project. 'Substantially interconnected'
means forming a set of operationally and geographically integrated
contracts, licenses, leases, or concessions or related agreements
with substantially similar terms that are signed with a government,
giving rise to payment liabilities.
Reporting Currency
Amounts in this Report are expressed in US Dollars ("USD").
Payments to Government other than in USD are translated based on
foreign exchange rates determined by PwC HK that engaged with
Jardine Matheson Holdings Limited.
Materiality
Payments
made as single payment, or as a series of related payments, that
equal or exceed USD107,286 (equivalent to GBP86,000) during the
year, are required to be disclosed.
Payment
All payments on
this Report are presented on cash basis.
i.
Taxes
These payments represent several taxes levied on the
income, production, or profits of companies. These include
corporate income tax and land and building tax for the mining
sector. Value added taxes, personal income taxes, sales (export)
taxes, land and building tax for the non-mining sector, motor
vehicle license and catering service taxes are excluded.
ii.
Royalties
These payments represent usage-based payments for the
right to extract natural resources which are calculated by a
specific percentage of the sales amount.
iii. Fees
These payments are typically levied on the right to
use a geographical area for exploration, development, production,
and compensation fund for the unfulfilled minimum 25% Domestic
Market Obligation ("DMO"), which are calculated by certain formula
of production quantity.
There were no payments to government for dividends,
bonuses, production entitlements and infrastructure
improvements.
Consolidated Overview
The consolidated
overview discloses the sum of Astra's payments to the Government of
Indonesia which presented in Governments Report and Project
Report.
Government Report
The
following table discloses the sum of Astra's payments per payment
type to the State Treasury (Kas Negara).
(in USD)
|
Taxes
|
Royalties
|
Fees
|
Total
|
State Treasury (Kas
Negara)
|
546,698,035
|
291,224,099
|
27,668,099
|
865,590,233
|
Project
Report
The table below discloses the sum of Astra's
payments per project and per payment type.
(in USD)
|
Taxes
|
Royalties
|
Fees
|
Total
|
Governments
|
Project
|
|
|
|
|
|
Martabe, North Sumatera
Project
|
46,114,947
|
26,023,040
|
1,785,406
|
73,923,393
|
State Treasury (Kas
Negara)
|
Kapuas, Central Kalimantan
Project
|
262,936,498
|
261,082,535
|
24,761,229
|
548,780,262
|
State Treasury (Kas
Negara)
|
North Barito, Central Kalimantan Project
|
-
|
-
|
203,493
|
203,493
|
State Treasury (Kas
Negara)
|
Banjar, South Kalimantan Project
|
3,367,054
|
4,118,524
|
752,578
|
8,238,156
|
State Treasury (Kas
Negara)
|
Sumbawa Project
|
-
|
-
|
165,393
|
165,393
|
State Treasury (Kas
Negara)
|
Entity Level Payment
|
|
|
|
|
|
Pamapersada Nusantara
|
169,357,874
|
-
|
-
|
169,357,874
|
State Treasury (Kas
Negara)
|
Pama Indomining
|
259,192
|
-
|
-
|
259,192
|
State Treasury (Kas
Negara)
|
Kalimantan Prima Persada
|
64,662,470
|
-
|
-
|
64,662,470
|
State Treasury (Kas
Negara)
|
TOTAL
|
546,698,035
|
291,224,099
|
27,668,099
|
865,590,233
|
|
This Report is available for download from https://www.jardines.com/en/about-us/corporate-governance.
Jonathan Lloyd, Jardine Matheson Limited
for and on behalf of Jardine Matheson Holdings Limited
27th June 2024
www.jardines.com