regulations that affect the group Restriction on the group's ability to planned changes that would adversely affect (including, in particular, laws retain its current structure or to the group to a material extent; current and regulations relating to land continue operating as currently regulations restricting the size of oil palm tenure, work permits for growers in Indonesia will not impact the expatriate staff and taxation) group for the foreseeable future Breach of the various continuing The group endeavours to ensure compliance conditions attaching to the with the continuing conditions attaching to group's land rights and the stone its land rights and concessions and that its and coal concessions (including Civil sanctions and, in an extreme activities and the activities of the stone conditions requiring utilisation case, loss of the affected rights or and coal concession companies are conducted of the rights and concessions) or concessions within the terms of the licences and permits failure to maintain all permits that are held and that licences and permits and licences required for the are obtained and renewed as necessary group's operations The group has traditionally had, and Failure by the group to meet the continues to maintain, strong controls in standards expected in relation to Reputational damage and criminal this area because Indonesia, where all of the human rights, slavery, sanctions group's operations are located, has been anti-bribery and corruption classified as relatively high risk by the International Transparency Corruption Perceptions Index Restrictions on foreign The group endeavours to maintain good investment in Indonesian mining Constraints on the group's ability to relations with local partners to ensure that concessions, limiting the recover its investment returns appropriately reflect agreed effectiveness of co-investment arrangements arrangements with local partners Country exposure In the recent past, Indonesia has been stable and the Indonesian economy has continued to grow but, in the late 1990s, Indonesia Difficulties in maintaining operational experienced severe economic turbulence and Deterioration in the political or standards particularly if there was a there have been subsequent occasional economic situation in Indonesia consequential deterioration in the instances of civil unrest, often attributed security situation to ethnic tensions, in certain parts of Indonesia. The group has never, since the inception of its East Kalimantan operations in 1989, been adversely affected by regional security problems Restriction on the transfer of fees, The directors are not aware of any interest and dividends from Indonesia circumstances that would lead them to believe Introduction of exchange controls to the UK with potential consequential that, under current political conditions, any or other restrictions on foreign negative implications for the servicing Indonesian government authority would impose owned operations in Indonesia of UK obligations and payment of exchange controls or otherwise seek to dividends; loss of effective management restrict the group's freedom to manage its control operations The group accepts there is a significant possibility that foreign owners may be required over time to divest partially Mandatory reduction of foreign Forced divestment of interests in ownership of Indonesian oil palm operations ownership of Indonesian Indonesia at below market values with but has no reason to believe that such plantation operations consequential loss of value divestment would be at anything other than market value. Moreover, the group has local participation in all its Indonesian subsidiaries Miscellaneous relationships The group appreciates its material dependence upon its staff and employees and endeavours Disputes with staff and employees Disruption of operations and consequent to manage this dependence in accordance with loss of revenues international employment standards as detailed under "Employees" in "Sustainability" of the annual report Reliance on the Indonesian courts for enforcement of the agreements governing its arrangements with local partners The group endeavours to maintain cordial Breakdown in relationships with with the uncertainties that any relations with its local investors by seeking the local shareholders in the juridical process involves and with any their support for decisions affecting their company's Indonesian subsidiaries failure of enforcement likely to have a interests and responding constructively to material negative impact on the value any concerns that they may have of the stone and coal interests because the concessions are legally owned by the group's local partners
VIABILITY STATEMENT
The group's business activities, together with the factors likely to affect its future development, performance and position are described in the "Strategic report" of the annual report which also provides (under the heading "Finance") a description of the group's cash ?ow, liquidity and ?nancing adequacy and treasury policies. In addition, note 23 to the consolidated ?nancial statements in the annual report includes information as to the group's policy, objectives, and processes for managing capital, its ?nancial risk management objectives, details of ?nancial instruments and hedging policies and exposures to credit and liquidity risks.
The "Principal risks and uncertainties" section of the "Strategic report" in the annual report describes the material risks faced by the group and actions taken to mitigate those risks. In particular, there are risks associated with the group's local operating environment and the group is materially dependent upon selling prices for CPO and CPKO over which it has no control. Possible risks associated with the Covid-19 pandemic and emerging risks are also addressed in this section of the report.
The group has material indebtedness, in the form of bank loans and listed notes. At 31 December 2020 (after reflecting the waiver of covenant breaches referred to in "Capital structure" under the heading "Finance" in the "Strategic report" of the annual report), the equivalent of USD54.1 million rupiah denominated term bank loans were due for repayment over the period 2021 to 2023 and, in addition, a rupiah working capital loan, equivalent to USD5.0 million, was subject to annual renewal in November of each year. Of the listed notes, USD27.0 million of 7.5 per cent dollar notes 2022 (the "dollar notes") are due for repayment on 30 June 2022. In view of the material component of the group's indebtedness falling due in the period to 31 December 2023, the directors have chosen this period for their assessment of the long term viability of the group.
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