Report of the Board of Commissioners

Esteemed shareholders,

The Finance Minister, Sri Mulyani, as quoted by media, stated that our national economic growth is buttressed by a steadily improving economic resilience. Therefore, amidst the global dynamics of uncertainty, Indonesia managed to record a growth of 5.17% while maintaining inflation at 3.13%.

Resilience is therefore our keyword here, as businesses are compelled to have a certain robustness to face the lingering uncertainty in the market.

Amidst the lingering uncertainty throughout 2018, the Board of Commissioners applauds the Board of Directors for showing its resilience in managing the stability of theCompany’s performance. Although the Company did not attain the marketing sales target as determined earlier, we believe that the Board of Directors had shown its optimum effort in managing the Company’s business and risks. In the end of 2018, the Company was even able to secure a Rp2.8 trillion syndicated loan from PT Bank Negara Indonesia (Persero) Tbk and PT Bank Central Asia Tbk. The main challenge in the property industry nowadays is how to create demand and provide incentives to the market to boost their spending and investment in property.

In maintaining intensive communications with the Board of Directors, the Board of Commissioners conducted 12 joint meetings with the Board of Directors throughout 2018. All issues were discussed transparently in these meetings. Should there be issues that need further examination, when necessary, the Board of Commissioners appointed a representative to guide the Board of Directors more intensively. The Company’s corporate governance has also become better and more open.

Throughout 2018, there were no changes to the composition of the Board of Commissioners. The Board of Commissioners received the assistance of three committees, namely Audit Committee, Remuneration & Nomination Committee, and Risk Management Committee, in carrying out its supervisory function over the Company’s business, in accordance with the Company’s Articles of Association.

Appreciation

The Board of Commissioners believes that challenges in 2019 will remain substantial. Every party therefore must be alert and must foster collaboration and deliver their utmost, so every hurdle and obstacle can be successfully overcome. We extend our appreciation for the hard work of the Board of Directors and all management and staff of the Company, and also to the shareholders and all business partners of the Company for their constant trust and support. We believe that all challenges will be surmounted when we strengthen our collaboration.

Warmest regards,

DR. Cosmas Batubara

President Commissioner