Report of the Board of Commissioners

Esteemed shareholders,

The year 2019 was a difficult period for the national economy. A number of stimuli launched by the central government and the central bank through their policies did not boost the pace of national economic growth to its most optimum level. The weakening trend in the global economy continued to hamper businesses, became one of the key factors affecting domestic economic growth. Businesses should express their appreciation for the efforts and policies taken by the government and the central bank in maintaining the pace of economic growth through their fiscal and monetary policies. These conditions brought a relatively adverse impact on the developments of the property sector in 2019.

Although the national economic growth rate slowed, this rate was still relatively better among other economies which experienced a weakening trend globally. The trade war between the United States (US) and China created widespread international ripples. This situation suppressed and affected the rate of economic growth in many developed countries across various regions. The US recorded a growth of only 2.3% in 2019, lower than the previous year’s. The World Bank reported that global economic growth in 2019 was in the range of 2.4%, lower than its initial projection of 2.9%. The global economic downturn in 2019 exerted a downward pressure on the national economic growth. This situation also created a systematic domino effect on many industrial sectors, including property. In general, the challenges faced by the property sector in 2019 were enormous. A number of government policies and stimulus incentives did not result in a broad impact on the growth of the national property sector.

Given such a discouraging situation, we have witnessed how Intiland had done its utmost to maintain its business growth. The Company continued to look for new breakthroughs and opportunities to serve as a driving force for its business progress. In the midst of issues facing the property sector and the wait-and-see attitude of mny customers, in 2019 the Company still managed to record marketing sales worth Rp1.56 trillion, operating revenue of Rp2.7 trillion, and net profit of Rp251.4 billion.


Amidst the unfavorable situation and market upheavals in 2019, the Board of Commissioners wish to express its appreciation to the Board of Directors for all the efforts, breakthroughs and innovations that have taken place in order to maintain the Company’s performance. Although in 2019 marketing sales remained below the target, but we view that the Board of Directors had delivered their utmost in managing the Company’s business and risks. The Board of Commissioners considers that the Board of Directors has been strongly committed to safeguarding the interests of the shareholders and other stakeholders. The Board of Directors has done its best to discover the best ways to overcome the obstacles and to explore every business opportunity. The Board of Commissioners also expresses its appreciation for each innovative measure and effort taken by the Board of Directors to seize every opportunity and maintain the Company’s business continuity. These were realized through a series of strategic measures, such as developing new products and services whose concept is in accordance with the market and consumer needs, expanding market potential, as well as opening up new opportunities for mutual collaboration with various parties.


One of the main tasks of the Board of Commissioners is to oversee and monitor each policy in the Company to achieve the targets through the implementation of Good Corporate Governance (GCG). The Board of Commissioners together with the Board of Directors ensure that GCG is appropriately implemented by everyone in the Company, in every business activity. In an effort to enhance the trust of stakeholders, the Company complies with all applicable laws and regulations. The Board of Commissioners also ensures that every policy of the Company’s is in line with GCG principles and abides by the existing regulations. Being a part of GCG implementation, the role of the Audit Committee in supporting the Board of Commissioners’ oversight function was carried out properly and effectively. The Audit Committee throughout 2019 carried out its duties and responsibilities optimally and supported the Company’s sustainable growth. In addition to the Audit Committee, the Board of Commissioners is also assisted by the Nomination and Remuneration Committee and the Risk Management Committee. Both committees in 2019 carried out their functions and duties with excellence and therefore contributed substantially to the Company’s growth.


In 2019, Intiland lost a key figure who had been instrumental to the development of the Company, the late Mr. Cosmas Batubara, the President Commissioner and Independent Commissioner, on 8 August 2019. Through a resolution of the Board of Commissioners’ meeting on 16 August 2019, myself, Thio Gwan Po Micky, was appointed as the Acting President Commissioner and Independent Commissioner until the nearest General Meeting of Shareholders.


In closing this report, the Board of Commissioners expresses its deepest gratitude for the hard work of the Board of Directors along with everyone in the Company’s management and staff. We also extend our thanks to the shareholders, customers, and business partners who have given us their trust and support all this time. It is our hope that the fruitful collaboration that we have established will continue to be strengthened, so that we can continue to deliver new innovations and add value to the Company and the community in a sustainable way.

Thio Gwan Po Micky

Interim President Commissioner & Independent Commissioner