Report of the Board of Commissioners

The Board of Commissioners views that the Board of Directors has demonstrated its commendable achievement. The sustainability of PT Intiland Development Tbk in surviving the economic downturn is the proof of the Board of Directors' capability in keeping the business running.

Esteemed shareholders,

Indonesia continued experiencing the economic slowdown in 2015, which resulted from such factors as the weakening of rupiah against the US dollar and the impact of global crisis. Correspondingly, such unfavorable economic condition has negatively affected many businesses from various industries in Indonesia, including the country's property sector.

Despite the country's not-so-conducive economy, the Board of Commissioners views that the Board of Directors has demonstrated its commendable achievement. The sustainability of PT Intiland Development Tbk in surviving the economic downturn is the proof of the Board of Directors' capability in keeping the business running.

BOD Performance Evaluation

The Board of Commissioners commends the strategies taken by the Board of Directors to maintain positive business performance by capitalizing on the Company's strengths. Innovation and the ability to read the market are the strengths that the Company has been able to realize.

One good example that we see is the initiative of developing Aeropolis, which has created demands for those seeking the benefits of living in close proximity of the Soekarno-Hatta International Airport.

The same goes to the integrated business complex South Quarter in South Jakarta and a number of projects in Surabaya; all of which are the fruits of innovative work; and the Management with the Board of Directors steering the Company was able to capitalize on the power of innovation to penetrate new markets.

GCG Implementation

Throughout 2015, Intiland has shown its seriousness in improving the implementation of Good Corporate Governance (GCG). The Company keeps striving at its best to improve the structures, mechanism and procedures to realize the Company's commitment in implementing GCG practices at the most favorable manner.

The Company has indeed demonstrated its ability to apply all the GCG principles in its day-to-day business activities. The Board of Commissioners keeps monitoring the work of the Board of Directors and ensures that all the Directors conduct their tasks and responsibilities in accordance with applicable laws and regulations. The Board of Commissioners also appreciates the work of Audit Committee and Internal Audit in implementing good corporate governance.

The Board of Commissioners has guided, supervised and evaluated the execution of the Company's strategies, in which all were reported and discussed during joint meetings between the Board of Commissioners and the Board of Directors.

To make the most of the GCG implementation in the Company, the Board of Commissioners always refers to the prevailing regulations and the Company's corporate value in providing the direction and supervisory to the Board of Directors and the Management as a whole. This is also to ensure that all the employees in Intiland work in synergy toward achieving the Company's vision and mission.

In exercising its functions as the Company's supervisory organ, the Board of Commissioners is assisted by the Audit Committee; and the synergy between the two is one of the vital parts in GCG implementation. The Audit Committee has also done a good job in evaluations on financial statements, internal control systems, risk management practices, and compliance with laws and regulations.

No less important is the presence of Nomination and Remuneration Committee that has assisted the Board of Commissioners in several tasks, such as in conducting performance assessment of the members of the Board of Directors, and providing advices on candidates who meet the requirements to be members of the Boards of Commissioners and Directors.

We also see the good contribution from the Internal Audit as an independent team in providing objective consultancy services that have increased the effectiveness of the Company's risk management, internal control and corporate governance practice.

Board of Commissioners Composition

There was no change in the composition of the Board of Commissioners in 2015. As the Company's supervisory organ, the Board of Commissioners 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.

Hopes for the Future

The Board of Commissioners is optimistic that all the achievements Intiland has gained throughout 2015 will become stronger ground for the Company to further grow and to contribute more to the development of property sector in Indonesia.

We see that our optimism is realistic looking at the solid synergy between the Board of Directors and the Management which has been demonstrated in building markets through the Company's strength.

In general, property business will always be able to survive, so long as humans still need housing and the world of business still needs office. This all is the fact that explains why we always stay optimism with the future of Intiland as one of the leading property developers in the country. The Board of Commissioners is confident that what the Company has achieved so far in terms of maintaining its business performance will become the seed for the Company to grow further in 2016 and years to come.

Appreciation

Last but not least, the Board of Commissioners would like to express its sincere gratitude for the hard work of the Company's Board of Directors, Management and staff in maintaining the Company's business performance in the condition where the economy has hurt many businesses in the country. We also would like to extend our appreciation to the shareholders, business partners, and stakeholders for their trust and supports. We hope that our solid relationship can continue in the future.

Dr. Cosmas Batubara

President Commissioner