Management Reports

Respected Shareholders,

We are filled with praise and gratitude for the presence of the Almighty God because, with His guidance, the Company flourished in 2022.

Throughout 2022, the Board of Commissioners has carried out its supervisory duties and provided advice, suggestions, and counsel to the Board of Directors of the Company properly and carefully for the benefit of the Company. In performing its duties, the Board of Commissioners is guided by the Company’s Articles of Association, applicable laws and regulations, and the principles of good corporate governance.

Throughout 2022, the Board of Commissioners’ supervisory responsibilities includes implementing and evaluating the 2022 Work Plan and Company Budget, reviewing the Company’s Long-Term Plan, ensuring the implementation of the resolutions of the 2021 Annual General Meeting of Shareholders, supervising the implementation of good corporate governance, enhancing the effectiveness of the internal control system and implementing the Company’s culture, and coordinating the implementation and compliance of the Company with the applicable laws and regulations.

Assessment on the Board of Directors' Performance

We anticipate that 2022 will be rife with significant uncertainties and obstacles, particularly on a global scale. The war between Russia and Ukraine reached its peak in 2022, and the ongoing Covid-19 pandemic, as well as extreme weather due to climate change, have caused an energy and food crisis.

On the other hand, Indonesia continues to grow positively at 5.31% in 2022, rose from 3.69% in 2021. According to data from the Ministry of Investment/ Indonesia Investment Coordinating Board, investment in the manufacturing industry also reached Rp497.7 trillion in 2022.

After experiencing 2 (two) years of decline, the real estate market is showing signs of improvement. But by the end of 2022, growth again stalled due to the expiration of the VAT incentive in September 2022 and the impending recession anticipated in 2023.

Throughout 2022, the Board of Commissioners believed that the Directors carried out their duties and responsibilities optimally. The Board of Commissioners appreciates the performance of the Board of Directors, which has enabled the Company to continue operating effectively despite tough economic conditions. The Board of Commissioners is well aware of the Company’s challenges throughout 2022. For this reason, the Board of Commissioners appreciated the various strategic initiatives taken by the Board of Directors in response to difficult circumstances.

In operational activities, the Company is committed to always putting employee health and safety first, especially in light of the ongoing Covid-19 pandemic. The Board of Directors has also consistently implemented good corporate governance, while still remaining reflected by the Company’s vision and mission and representing values and culture of the Company.

The Board of Commissioners' Supervisory of the Implementation of Strategies

The Board of Commissioners is in charge of supervising the Company’s operations and the Directors’ performance in executing the Company’s operational activities. In the course of conducting oversight, we actively make recommendations and offer input on relevant information that may affect the Company’s performance.

In addition, the Board of Commissioners annually reviews and approves the Company’s Work Plan and Budget (RKAP), monitors the development of the Company’s activities and offers suggestions and corrective measures when problems arise.

We believe that the Company were able to produce good overall performance throughout 2022, despite the fact that the Covid-19 pandemic is still ongoing and economic conditions have not fully recovered.

The Board of Commissioners considers that the Board of Directors of the Company has made every effort to maintain the stability of the Company and to maintain the trust of the Company’s business partners. In addition, in this pandemic situation, the Board of Directors is primarily concerned with ensuring the well-being of the Company’s workforce.

In 2022, the apartment rental business, which is one of the Company’s core businesses, continued to operate proficiently. Furthermore, hotel room sales have begun to rise in conjunction with the recovery of the national tourism industry.

In 2022, the Company recorded an increase of net profit of the year of 1,673.60%, from net loss of the year amounted to Rp17.73 billion in 2021 to net profit of the year amounted to Rp279.00 billion in 2022.

Additionally, in 2022, the Company also managed to sell one of its inventories, there by strengthening the Company’s cash flow. By selling one of the Company’s inventories, the Company can repay its loans with Bank BCA, Bank Mandiri, and Bank Niaga. With the proceeds from the sale of these inventories, the Company intends to expand its operations in 2023.

View on the Business Outlook

In line with the view of the Board of Directors, we assess that the Indonesian economy will continue to recover as the Covid-19 pandemic subsides. In all aspects of modern life, technology, digitization, and innovation will play a significant role. Therefore, we encourage the Company to continue adapting and utilizing technological advantages by offering innovative products and services.

The Board of Commissioners is committed to processing information comprehensively and providing insight into the future of the Company’s business based on data analysis prepared by the Board of Directors. We advise the Board of Directors that in order to carry out appropriate long-term planning, it is necessary to continue to observe and understand external economic conditions.

The Board of Commissioners and the Board of Directors constantly monitor market conditions, studies industry developments, engages in product development and innovation, and upholds good and ethical business practices, including providing all customers with optimal service.

In 2023, the Company will continue to strive to accelerate its performance by adapting to industry developments. We are optimistic that the property industry’s growth will positively impact the Company’s performance and provide opportunities for business development for the Company.

Performance Assessment on the Committees under the Board of Commissioners

Currently, the Company only has an Audit Committee, which reports to the Board of Commissioners. In 2022, the Board of Commissioners assessed that the Audit Committee has performed admirably in providing
input and suggestions to the Company’s Board of Directors. The Audit Committee has provided professional and impartial opinions, as well as an analysis of the operational and financial performance carried out by the Company’s Board of Directors.

Governance Implementation

As a public company, the Company is committed to continuing to implement the principles of Good Corporate Governance (GCG) in order to strengthen the Company’s reputation and improve its performance. The Company’s entire management and employee are expected to uphold the Company’s culture, which consists of 7 (seven) pillars, namely honesty, discipline, transparency, commitment, consistency, creative and innovative, as well as perseverance and tenacity.

The entire implementation of the Company’s GCG practices always complies with the applicable laws and regulations. We continue to monitor and improve the implementation of corporate governance alongside the Board of Directors, and we encourage every employee to work with integrity and professionalism. We also support the Company in implementing sustainable programs that can contribute to the environment, community, society and customers.

Closing Remarks

Please allow us to express our sincere appreciation to the shareholders for the confidence they have placed in the Company. In addition, we extend our deepest appreciation to the Board of Directors, who has led the Company with the utmost integrity and responsibility, as well as to every employee who has performed admirably. Let’s embrace the future with enthusiasm and work harder to achieve sustainable performance growth.