Report of the Board of Commissioners

Dear Esteemed Shareholders,

The year 2017 was a challenging period despite a favorable statement from the Central Bank indicating Indonesia’s economic growth of 5.07% in 2017, slightly more stable when compared to the 5.02% growth in 2016. Despite the prospective macroeconomic conditions, many businesses across the archipelago have been in stagnant position, including the property sector.

On a global scale, everyone witnessed various improvements in the global economic growth, which reached the level of 2.7%; while there are some improvements in developed countries, one example is the United States that recorded an increase of 2.3% in 2017.

As for the two major economies in the Asian region, China and Japan have different economic conditions. China’s economic growth declined to 6.9% compared with an average of 9-10% over the previous 30 years, where inflation is still at a low level of 1.5%. Meanwhile, Japan continued experiencing an increase of inflation despite the improvement in the country’s export performance in this Sakura country.

In Indonesia, being the world’s largest archipelago and Southeast Asia’s biggest economy, the property industry has been experiencing market anomaly with many property developers are in the high risk of “wait and see” condition. Despite all the challenges, Intiland has proven to stay on track with projects and stable revenues. There’s no charm or magic recipe for us. It simply takes great courage, shrewd business acumen and good plan as well as meticulous management to survive in the industry

Assessment of BOD Performance

In 2017, Intiland has successfully executed its strategies that the Company managed the business to run on track amidst the setbacks that hit the property industry.

Therefore, the Board of Commissioners (BOC) commends the good work of the Board of Directors (BOD) in managing the Company. Such outstanding performance shows that the BOD has realized its commitments for the interests of shareholders and other stakeholders.

The BOC also commends the ability of the BOD to weather the storm while exploring more business opportunities. This has been demonstrated by the Company’s good marketing performances, especially with the ongoing projects of Fifty Seven Promenade, a luxury high-rise residence in the strategic Central Jakarta, and Ngoro Industrial Park in East Java.

Overall, all of these achievements are rooted to the Company’s more than 40 years of presence in Indonesia’s property industry. No less important are innovation and the ability to read the market, both of which are the strengths that the Company has evidenced in maintaining Intiland as one of the largest property developers in the archipelago.

Views of Business Prospects

With the achievement of performance that the Company has recorded in 2017, the Board of Commissioners (BOC) believes that the Board of Directors (BOD) has done its best in implementing the Company’s strategies, controlling the risks, and in the practice of Good Corporate Governance (GCG) in accordance with applicable laws and regulations.

In relation to the strategic steps taken by the BOD, the BOC believes that the Company will be able to survive the business for many years to come.

GCG Implementation

In carrying out its oversight function, the Board of Commissioners (BOC) shall continue to monitor the process to achieve the expected results through the implementation of Good Corporate Governance. The BOC believes that the practice of GCG principles is an integral part of achieving the Company’s objectives.

The Company has been very serious in keeping the improvements of its GCG practice. This is because the BOC together with the Board of Directors (BOD) aims to realize the long-term ransformation of corporate governance to produce sustainable value.

Whistleblowing System

The Board of Commissioners (BOC) has performed a monitoring supervision function on the effectiveness and adequacy of the Whistleblowing System (WBS) in the Company. Supervision conducted by the BOC includes, among others, violations of business ethics and work ethics, the Company’s confidentiality violations, monitoring of WBS implementation as well as conflict of interest.

The BOC is always active in monitoring and following up the effectiveness of WBS implementation through internal and joint meetings between the BOD, as well as the committees under the supervision of the BOC.

During 2017 there were 3 reports through whistleblowing which have been dealt with by the management.

Committees under BOC

In performing its supervisory role, the Board of Commissioners is assisted by three committees, namely the Audit Committee, the Remuneration and Nomination Committee, and Risk Management Committee. During 2017, these committees have performed well and have contributed greatly to the growth of the Company.

Board of Commissioners Composition

There was no change in the composition of the Board of Commissioners in 2017. As the Company’s supervisory organ, the BOC exercises its functions in accordance with the Company’s Articles of Association. This has been done as the realization of our commitment in carrying the mandate for the benefits of the Company, shareholders and other stakeholders.

Appreciation

Last but not least, the Board of Commissioners would like to express its sincere gratitude for the hard work of the Board of Directors, as well as the management and staff of the Company. We would not have survived in today’s tough business competition without the dedication and commitment from our solid team.

We also would like to extent our appreciation to the Shareholders, and business partners for their trust and supports. We hope that our solid relationship can continue for many years to come.

DR. Cosmas Batubara

President Commissioner