The Company realizes that in conducting the business activities, they are exposed to business risks which may arise from time to time as a result of internal or external factors that could ultimately affect the increase or decrease in the Company consolidated income.

Several important business risks requiring full attention of the management  are as follows :

 1. Competition Risk

The intense competition in gaining market share of chemical products creates greater business risks. 

For that risk, Company remained consistent in implementing marketing strategies to ensure that the Consumers can still obtain a fairly competitive price, quality products, excellent services, and on time, smooth and continuous delivery.

2. Currency Risk of Rupiah against US Dollar

 The Company’s products are priced and sold in US Dollar, on the other hand the Company’s accounting records is in Rupiah, which may potentially expose  foreign exchange risk, which then  affect the the Company’s profitability. 

To anticipate the risk, the Company tried to implement the use of foreign currency balance, where several products are sold in USD equivalent basis price. 

3. Government Policy Risk

Chemical Industry and oil and gas industry are also industries governed by and fully relying on policy of the Government of Indonesia. Any changes in government policy that are not  fully anticipated, and are less favorable to the Company and the subsidiaries, then it may affect the operations of the Company which in turn affects the income of the Company.  

The Company strives to anticipate the issuance of new government policies by modifying the existing internal system of corporate regulation.

4. Risk of Availability of Reliable and Competent Human Resource 

The Company in their operation activities needs professional, educated, well-trained and reliable human resources.  

Therefore the Company and the subsidiaries strive to maintain and pay attention for development of human resources and complianc with the government regulation especially those related to the welfare of employees.