Management Reports

Dear Shareholders and Stakeholders,

Peace and prosperous, may we all be in the goodness and guidance of The God Almighty.

During the 2025 fiscal year, the Board of Commissioners noted that the national property sector remained resilient despite fluctuations in the global economy. Stable domestic macroeconomic conditions, controlled inflation, and a stable financial sector have been key supports for the sector’s ongoing operations. With Indonesia’s economy growing by 5.11% in 2025, the property industry maintained a steady performance, experiencing moderate and controlled growth.

In the residential sector, the Board of Commissioners observed that the demand for housing, particularly landed houses, continues to be mainly fueled by the public’s need for residence. Meanwhile, the hospitality industry experienced steady recovery throughout 2025. Rising public mobility, growth in domestic travel, and the resurgence of tourism activities, along with business and MICE events, have positively impacted occupancy rates and the performance of hospitality properties, especially in major destinations.

Evaluation of the Board of Directors’ Performance

The Board of Commissioners independently and objectively evaluates the performance of the Board of Directors as part of its supervisory responsibilities. This review comprehensively considers aspects like financial and operational outcomes, the effectiveness of strategy implementation, the quality of risk management, and compliance with strong corporate governance principles.

In our evaluation, the Board of Directors has demonstrated a strong commitment and professionalism in directing and managing the Company. The Board of Directors has exhibited adaptability and responsiveness to industry developments and evolving economic conditions, while implementing prudent strategic measures to maintain business stability and enhance performance growth. Effor ts to optimize the project por t folio, manage costs, and strengthen the capital structure have become integral elements of this assessment.

Furthermore, we have evaluated the leadership quality of the Board of Directors in fostering internal organizational synergy, promoting a culture of integrity, and enhancing human resource capabilities. Overall, the Board of Commissioners is of the opinion that the Board of Directors has effectively fulfilled its duties and responsibilities, in accordance with the approved work plan, while consistently prioritizing the interests of the Company and its stakeholders.

Supervision of the Company’s Performance

The Board of Commissioners diligently supervises the Company’s performance, ensuring that all policies and strategic initiatives by the Board of Directors align with the Company’s vision, mission, and long-term goals. This supervision is conducted independently and objectively, adhering to prudent principles and strong corporate governance to safeguard business continuity and shareholders’ interests.

Throughout 2025, the Board of Commissioners actively reviewed financial and operational performance reports, monitored progress toward the objectives delineated in the Company’s Work Plan and Budget (RKAP), and assessed the efficacy of project development strategies. Furthermore, the Board of Commissioners supervised the implementation of risk management and internal control systems, including oversight by the Audit Committee and other supporting committees.

We acknowledge the Company’s notable improvement in performance, evidenced by a 145.21% increase in comprehensive income for 2025 to Rp1.70 billion, thereby reversing a net loss of Rp3.76 billion in 2024. This achievement underscores the Company’s capacity to execute effective and strategically planned actions and policies.

Views on Business Prospects

The Board of Commissioners believes that the outlook for the property industry remains promising, despite ongoing global and national economic challenges that require ongoing vigilance. Steady national economic growth, increased investment activity, and continued infrastructure development are key factors supporting demand for property products across residential, commercial, and mixed-use development sectors.

We believe that sustained housing demand, middle class expansion, and rising urbanization will remain the key drivers of the property sector in the medium to long term. Meanwhile, the recovery of business activities and public mobility has also benefited commercial properties, such as shopping centers, office buildings, and hospitality venues.

However, we also recognize several risk factors such as interest rate volatility, shifts in fiscal and monetary policies, and fluctuations in public purchasing power. Consequently, we recommend that the Company consistently exercise caution during expansion, uphold a strong capital base, and improve marketing strategies and product differentiation to stay aligned with changing consumer preferences.

Views on the Implementation of Corporate Governance

The Board of Commissioners emphasizes that developing and enhancing Good Corporate Governance (GCG) is essential for ensuring business sustainability and boosting the Company’s long-term value. In a progressively complex and challenging industry landscape, adopting effective, transparent, and accountable governance practices is vital to guarantee that strategic decisions are made prudently, with clear metrics, and aligned with the interests of all stakeholders.

During the reporting period, the Board of Commissioners diligently carried out its supervisory and advisory responsibilities to guarantee the uniform application of all GCG principles throughout the organization. Improving internal control systems, risk management, internal audit functions, and supporting committees of the Board of Commissioners remains a core focus, aimed at strengthening supervisory effectiveness and improving the quality of decision-making.

Closing

On behalf of the Board of Commissioners, I would like to express my utmost appreciation to the Board of Directors, management, and all employees for their dedication, professionalism, and unwavering commitment in supporting the Company’s business activities. We also extend our gratitude to customers, business partners, shareholders, and all stakeholders for their trust, support, and robust collaboration. We firmly believe that through upheld integrity, enhanced governance, and a focus on value creation, the Company will sustain its growth in a responsible and sustainable manner.