“The Board of Commissioners supports and guides the Directors in maintaining the Company’s sustainable growth and ensuring compliance with regulations and good corporate governance principles.”
Honorable Shareholders and Stakeholders,
On behalf of the Board of Commissioners, I present the supervisory report on the Directors of PT Intiland Development Tbk for 2024. This report covers accountability, performance assessment, strategy, governance, and strategic directions for 2025 prospects and challenges.
Through this report, the Board of Commissioners expresses its deep condolences. Intiland has lost the important figure who has greatly contributed to the journey and development of Intiland, Mr. Hendro S. Gondokusumo, the founder and President Director, who passed away on March 13, 2025, in Singapore. The Board of Commissioners extends its sincere thanks and highest respect for his invaluable contributions throughout the years.
The Board of Commissioners appreciates the support and trust of shareholders and stakeholders, which drive management in fulfilling its duties for the company’s progress.
OVERVIEW OF EXTERNAL CONDITIONS
The Company views 2024 as an important moment for the growth of the national economy and investments. Although there are still several challenges and risks to face, Indonesia’s economy shows a positive growth trend. The stability of the investment climate and economy has been well maintained amidst the political dynamics within the country, as well as various global challenges and risks.
Year 2024 is also noted as a political year due to the holding of two national general election events. In February 2024, the people of Indonesia elected the President and Vice President, as well as members of the People’s Representative Council (DPR) and the People’s Consultative Assembly (MPR), followed by the simultaneous regional elections in November 2024. We are grateful that these important events were carried out safely and smoothly. However, on the other hand, the political climate also affected consumer and investor confidence, which tended to delay purchases and investments until there was certainty about the new government.
We observed the potential risks from domestic factors influenced by several global factors in 2024. Dynamics and developments abroad, such as geopolitical tensions, the continuation of the trade war leading to tighter monetary policies, and the threat of a recession in several developed countries, particularly in Europe, also affected the economic growth and investment climate in Indonesia.
Indonesia’s economy remains resilient thanks to sustained domestic consumption, increased investment, and improved exports, particularly from the commodity sector. Despite external pressures, such as the potential slowdown of the global economy and energy price fluctuations, Indonesia remains on track to achieve its growth targets.
Amidst the dynamics, risks, and challenges that emerged in 2024, we noted that Indonesia’s economy grew by 5.03% (yoy), slightly slowing compared to 2023’s performance. The policy to maintain controlled and stable inflation has proven effective in sustaining public purchasing power. Indonesia’s inflation rate in 2024 remained controlled at 1.57% (yoy), below the government’s target range of 2.5%±1% (yoy). Political stability and economic growth have been crucial factors in fostering confidence and optimism among business players and the public.
We also observe that the national property industry has grown steadily, supported by the continued high demand from the public, the trend of low interest rates, and the policy incentives issued by the government. The provision of incentives in the form of Government-Borne Value Added Tax (PPN DTP) has made it easier for the public to purchase property and have successfully created leverage for the public’s ability to own a home.
However, despite these incentives, not all property development segments have experienced recovery or achieved positive growth in 2024. Several property subsectors, such as the apartment and office markets, have not significantly improved. The demand for apartment properties remains relatively low, and a similar situation is seen in the office market. Although it is projected to perform better than in 2023, the demand remains quite low, while the supply of office units is still quite high.
On the other hand, the residential and industrial estate subsectors have grown more dynamically and experienced an increasing demand trend. The need for more affordable housing units has increased. This is partly due to the large backlog, which still stands at around 12.7 million units, providing ample room for growth in the residential subsector.
The industrial estate subsector has also shown very strong performance, alongside increased investment. The sale of industrial land even recorded its highest sales since 2020. This positive trend signals a recovery and transformation in the growth of the industrial estate subsector for the years to come.
PERFORMANCE ASSESSMENT OF THE DIRECTORS AND STRATEGY EVALUATION
Amidst the dynamics of the property industry in 2024, the Board of Commissioners sees the Company on the right track. The Company continues to adapt, enhance long-term performance, and remain committed to providing the best properties for the community.
The Board of Commissioners assesses that the Directors has performed well in 2024, managing the company and executing strategies aligned with long-term growth directions.
We appreciate the Directors’ commitment and efforts in performance, risk management, and governance, reaffirming their dedication to maintaining shareholder and stakeholder trust.
In 2024, the Company successfully improved its sales performance amidst the challenges and the property market conditions that have not yet fully recovered. Although the Company did not meet the sales target set at the beginning of the year, the marketing sales achievement in 2024 was 72.4% higher compared to 2023. In terms of financial performance, the Company also managed to maintain profitability and its financial position on the balance sheet. The Company recorded revenue of Rp2.55 trillion, a decrease primarily caused by the low contribution from the high-rise segment. Net profit was recorded at Rp174.8 billion, remaining relatively stable compared to 2023. This achievement has been one of the factors evaluated by the Board of Commissioners in assessing the performance of the Directors throughout 2024.
SUPERVISION OF STRATEGY FORMULATION AND IMPLEMENTATION
Based on our monitoring, the Directors successfully formulated key strategies to sustain business growth and development. Amidst existing challenges and obstacles, as well as the still recovering demand for property, the Directors managed to execute the main plans and strategies related to operations, financial management, risk management, and expansion policies for both ongoing and new projects.
The Board of Commissioners assesses that the policies set and implemented by the Directors are on the right path. The Directors has set a more optimistic business strategy by capitalizing on the recovery momentum in the property sector in 2024. The Directors has also overcome various challenges and obstacles while focusing on exploring growth opportunities. The Company’s quick shift in focus towards the development, marketing, and sales of residential and industrial estate segments was the right decision. This strategy proved effective in addressing changes and dynamics in the property market, particularly regarding the still low demand in the high-rise development segment, especially for apartment products.
The Company’s participation in the Nusantara Capital City (IKN) strategic project is a key step for the future. In collaboration with strategic partners, the Company is developing three integrated projects: a mixed-use area (hotel, apartments, retail, sports, F&B), a Transit-Oriented Development (TOD) area, and a golf residential community. The Board of Commissioners supports this strategic expansion, expecting its contribution to positively impact the economy and society. The development of IKN is a significant achievement that promotes national growth equity.
The Board of Commissioners believes the Directors has formulated and implemented strategic policies that provide certainty for stakeholders. With these achievements, we are confident that the Directors can overcome challenges, optimize resources, and lead the Company to success.
OPINIONS ON THE IMPLEMENTATION OF GOOD CORPORATE GOVERNANCE AND PERFORMANCE EVALUATION OF THE COMMITTEES
The Board of Commissioners oversees and advises the Directors with support from the Audit Committee and the Nomination and Remuneration Committee. With comprehensive access to information, evaluations are conducted through internal meetings and joint meetings with the Directors. We assess that the Company has maintained good governance in 2024, covering finance, internal controls, audits, risk management, and regulatory compliance.
We believe that the Company has implemented governance principles effectively in 2024. With the support of the committees, the Board of Commissioners has carried out its supervisory and evaluation functions concerning various aspects, including the quality of financial information, internal control systems, the effectiveness of external and internal auditors’ audits, risk management, and compliance with applicable laws and regulations.
In 2024, the Board of Commissioners held 9 (nine) Internal Meetings, some of which were attended by the Audit Committee and the Nomination and Remuneration Committee. The average attendance rate of the members of the Board of Commissioners at these meetings was 89%. The Board of Commissioners also held 4 (four) Joint Meetings with the Directors, with an average attendance rate of 100%. Meanwhile, the attendance rate of the Board of Commissioners at 5 (five) Joint Meetings held by the Directors was 100%.
In internal and joint meetings, the Board of Commissioners discussed current conditions, performance, human resources, risk management, and governance. Guidance and input were provided as per their role, with decisions followed up and monitored by the Board of Directors.
The Board of Commissioners assesses that the Audit Committee and the Nomination and Remuneration Committee have effectively fulfilled their roles in 2024, supporting governance and sustainable growth. Both committees regularly reported on risk management, internal controls, and HR strategies. We appreciate their dedication and contributions to the Company’s progress.
In 2024, all governance bodies conducted a self-assessment. The Board of Commissioners evaluated the results and concluded that responsibilities were well executed. Members understood their roles, provided input, and meetings were held as required.
CHANGES IN THE COMPOSITION OF THE BOARD OF COMMISSIONERS
In 2024, there was a change in the composition of the Company’s Board of Commissioners. During the Annual General Meeting of Shareholders (AGMS) held on May 30, 2024, the resignation of Ms. Ping Handayani Hanli as the Company’s Director was accepted, and at the same time, her appointment as the Company’s Commissioner was approved. Based on the resolution of the AGMS, the composition of the Company’s Board of Commissioners now consists of six members: one President Commissioner, one Vice President Commissioner and Independent Commissioner, two Independent Commissioners, and two Commissioners. With this composition, the number of Independent Commissioners in the Company is 50%, thus fulfilling the requirements set forth by the Financial Services Authority regulations.
All members of the Company’s Board of Commissioners possess competencies, experience, leadership, expertise, and educational backgrounds that complement and support one another. With this diverse composition, each member of the Board of Commissioners is well-equipped to effectively carry out their supervisory and advisory functions to the Directors in managing the Company.
VIEW ON LONG-TERM BUSINESS PROSPECTS
The property industry outlook for 2025 remains challenging but holds growth potential. Global tensions may impact investment, but government policies support economic stability and the property sector.
We remain optimistic about the Company’s business prospects despite challenges. The Directors has developed strategic plans with realistic targets, considering risks and resources. We support these plans while advising caution in expansion and ensuring strong governance.
With its experience, expertise, and diverse portfolio, we believe Intiland will continue to grow and enhance its performance sustainably.
APPRECIATION
On behalf of the Board of Commissioners, I would like to express my gratitude and appreciation for the hard work of the Directors, all employees, members of the Supporting Committees, customers, partners, shareholders, and all stakeholders. I am confident that all Intiland employees have a strong commitment to delivering the best for the Company and all stakeholders. The challenges, opportunities, and dynamics throughout 2024 have become valuable experience and motivation for all Intiland employees to contribute their best to the Company’s long-term and sustainable growth.
Sinarto Dharmawan
President Commissioner