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Indonesia Is Vulnerable To Natural Disasters and Events Beyond Our Control, Which Could Adversely Affect Our Business and Operating Results

Indonesia is prone to natural disasters such as earthquakes, tsunamis, volcanic eruptions and floods that can damage infrastructure and disrupt business operations. In recent years, Indonesia experienced tsunamis, earthquakes, mud eruptions and floods in various parts of the country that killed people and damaged the company's equipment. In 2009, earthquakes in West Java and West Sumatra caused damage to assets and disrupted telecommunications services. Flash floods are also common during the rainy season, sometimes resulting in major disruption and loss of life.
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0% found this document useful (0 votes)
26 views

Indonesia Is Vulnerable To Natural Disasters and Events Beyond Our Control, Which Could Adversely Affect Our Business and Operating Results

Indonesia is prone to natural disasters such as earthquakes, tsunamis, volcanic eruptions and floods that can damage infrastructure and disrupt business operations. In recent years, Indonesia experienced tsunamis, earthquakes, mud eruptions and floods in various parts of the country that killed people and damaged the company's equipment. In 2009, earthquakes in West Java and West Sumatra caused damage to assets and disrupted telecommunications services. Flash floods are also common during the rainy season, sometimes resulting in major disruption and loss of life.
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Disaster Risks

Indonesia is vulnerable to natural disasters and events beyond our control, which
could adversely affect our business and operating results

Many parts of Indonesia, including areas where we operate, are prone to natural
disasters such as floods, lightning strikes, typhoons, earthquakes, tsunamis, volcanic
eruptions, fires, droughts, power outages and other events beyond our control. The
Indonesian archipelago is one of the most volcanically active regions in the world as
it is located in the convergence zone of three major lithospheric plates. It is subject
to significant seismic activity that can lead to destructive earthquakes, tsunamis or
tidal waves. From time to time, natural disasters have killed, affected or displaced
large numbers of people and damaged our equipment. These events in the past, and
may in the future, disrupt our business activities, cause damage to equipment and
adversely affect our financial performance and profit.
In recent years, several natural disasters have occurred in Indonesia (in addition to
the Asian tsunami in 2004), including tsunamis in Pangandaran in West Java in 2006
and 2010, an earthquake in Yogyakarta in Central Java in 2006, a hot mud eruption
and subsequent flooding in Sidoarjo in East Java in 2006 and separate earthquakes in
Papua, West Java, Sulawesi and Sumatra in 2009.
On September 2, 2009, an earthquake in West Java caused damage to our assets. On
September 30, 2009, an earthquake in West Sumatra disrupted the provision of
telecommunications services in several locations. Although our Crisis Management
Team in cooperation with our employees and partners was able to restore services
quickly, the earthquake caused severe damage to our assets. There were a number
of earthquakes detected in 2010 through 2013, although none of them presented
significant risks to our business in general.
Flash floods and more widespread flooding occur regularly during the rainy season
from November to April. Cities, especially Jakarta, are frequently subject to severe
localized flooding which can result in major disruption, and occasionally fatalities.
Jakarta experienced significant floods in February 2007 as did in Solo in Central Java
in January. In January 2009, torrential rain caused a dam to burst outside Jakarta,
flooding hundreds of homes in a densely populated neighborhood, resulting in the
death of approximately 100 people. Landslides regularly occur in rural areas during
the wet season.

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