INVESTOR RELATIONS

Management Reports

Report of the Board of Commissioners

Kosmian Pudjiadi, BSISE, MBA President Commissioner

Dear Esteemed Shareholders,

Allow me, on behalf of the Board of Commissioners, to praise God Almighty for His blessings that have made it possible for the Company to achieve a satisfactory performance amidst the generally lagging property market throughout 2017.

The Board of Commissioners has established an excellent partnership with the Board of Directors in discussing the strategies and performance of the Company. The Board of Commissioners has also provided recommendations that the Board of Directors might need in order to complete the Company's work plan.

In implementing its role, the Board of Commissioners has ensured that the Company has properly followed all of the principals in the Good Corporate Governance as a whole in accordance with the Company's objectives and interests.

Performance Assesment of BOD

The Board of Commissioners would like to convey its utmost appreciation towards all members of the Board of Directors for maintaining their good performance amidst the presently weakened property market. Although the financial and operational performance of the Company has shown an overall decline, the Board of Commissioners believes that the Board of Directors has given their best efforts by implementing various strategies and suitable policies to reduce the risk for the Company, as well as trying to maintain the Company’s positive performance.

Assesment of The Performance of Committees Under the BOC

In order to fulfil its duty to supervise the implementation of Good Corporate Governance in the Company, the Board of Commissioners has formed an Audit Committee as a supporting body. The Audit Committee is responsible to deliver its professional and independent suggestions and analyses regarding the operational and financial performance done by the Board of Directors to the Board of Commissioners as the supervisory board.

The Board of Commissioners believes that throughout 2017, the Audit Committee had effectively and fittingly completed its tasks and responsibilities. Therefore, the duty of the Board of Commissioners in guiding the Board of Directors to achieve the Company’s Vision and Mission in 2017 has been completed thoroughly and well.

Dividends Distribution to Shareholders

The Board of Commissioners greatly appreciates the realisation of the decision of the Company’s annual General Meeting of Shareholders (RUPS), which was held on 9 June 2017, to distribute Cash Dividends to all Shareholders in the amount of Rp. 3,- per stock or a total of Rp. 988.68 million, which was taken from the remaining net profit in the 2016 fiscal year and was distributed on 12 July 2017 to all Shareholders. This is a form of return for the Company’s Shareholders which the Company has consistently realised through the annual Distribution of Dividends.

The BOC Views of The Company’s Business Prospects

The Board of Commissioners views that in general the property market will still undergo some pressure, especially with the impending arrival of the 2019 political year when the country will hold a Presidential Election. Several observers declare that the world of property will only become better after the 2019 Presidential Election.

In order to get around the slumping condition of the market, several new innovations are needed so that the dwindling consumer purchasing power can be dealt with. These innovations include a convenient payment plan that can be applied to all consumers in general and the offering of the fully-furnished packages for the apartment units so that consumers can immediately occupy or rent them.

Patterns for cooperation or joint venture also need to be considered in order to minimize the risks in the weakening state of the present property market. The Board of Commissioners hopes that the Board of Directors will do a research to get a better grasp of the trend in technology, design and specification, as well as facilities that better suit the requirements of the people.

Closing

On behalf of the Board of Commissioners, we would like to extend our appreciation to the Board of the Directors and all of the employees for their achievement in 2017. We wold also like to express our gratitude for all Shareholders and Business Associates for their support so that the Company is able to give its best effort for all Shareholders and the society. We hope that God Almighty will always guide and bless all of our work in the incoming years.

Kosmian Pudjiadi, BSISE, MBA
President Commissioner
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