inventories, reduced trade receivables in line with lower EOF sales and lower advances for the purchase of rawmaterials. However, this was partly offset by higher cash levels. The Group’s total liabilities decreased by 13% to Rp13.2 trillion mainly due tohigher loan repayment in 2023, lower employee benefits liabilities which were determined based on actuarial calculations in accordance with the Indonesian Labour Law, and lower trade and other payables and accruals. The decrease was partly offset by higher deferred tax liabilities. As of 31 December 2023, the Group recorded net current assets of Rp0.4 trillion compared to Rp0.7 trillion in the previous year-end. The Group’s financial position continued to strengthen with higher cash and lower interest-bearing loans and borrowings. The Group’s net debt-to-equity ratio improved, decreasing from 0.20 times as of 31 December 2022 to 0.11 times as of 31 December 2023. CASH FLOWS The Group generated higher operating cash flows of Rp3.8 trillion in 2023 compared to Rp3.6 trillion in the previous year. This was mainly due to improved working capital and lower income tax paid. Net cash flows used in investing activities were lower than the previous year’s level at Rp1.3 trillion mainly due to lower additions of property, plant and equipment, along with lower investment in joint ventures and associated companies. This was partly offset by higher investment in biological assets and plasma projects. In terms of financing activities, the Group recorded net cash usage of Rp1.7 trillion in 2023 compared to Rp1.6 trillion in 2022. This was mainly due to the net repayment of loans and dividend payments during the year. As of 31 December 2023, the Group’s cash levels increased to Rp5.2 trillion fromRp4.4 trillion a year ago. This was largely due to positive operating free cash flows. Employees’ training in Kayangan Estate, Rokan Hilir, Riau 13 Annual Report 2023 GROUP OVERVIEW OPERATION AND FINANCIAL REVIEW SUSTAINABILITY & GOVERNANCE FINANCIALS OTHER INFORMATION
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