“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 hereby present the supervisory report and evaluation of the performance of PT Intiland Development Tbk for the financial year 2025. This report covers accountability, performance assessment, views on external conditions, strategy implementation, governance practices, as well as perspectives on future business prospects and challenges.
The Board of Commissioners expresses its deepest condolences on the passing of the late Mr. Hendro S. Gondokusumo on March 13, 2025. He was the founder and a central figure in the Company’s journey. His dedication and contributions will continue to serve as an inspiration to all members of the Company.
The Board of Commissioners would like to extend its gratitude and appreciation to Shareholders and Stakeholders for their continued support and trust in the advancement of the Company.
OVERVIEW OF EXTERNAL CONDITIONS
We observed that the dynamics of the situation and conditions throughout 2025 remained challenging and continued to give rise to uncertainty. Although Indonesia’s economic fundamentals remained relatively strong with stable growth, business risks escalated due to shifts in regional and global stability. Security escalation in the Middle East region has the potential to adversely affect regional stability, lead to energy deficits, and disrupt global supply chains.
We observed that Indonesia’s economy demonstrated stable performance, with growth of 5.11% (yoy) in 2025. This achievement was primarily supported by strong domestic consumption, increased investment, and relatively expansive government spending. This level of growth places Indonesia among the fastest-growing economies in the region.
The Government also succeeded in maintaining inflation of 2.92% (yoy), reflecting the effectiveness of monetary and fiscal policies in preserving price stability and purchasing power. This macroeconomic stability has contributed to increased confidence among investors and business actors following the national political transition period in the previous year.
We believe that the national economic fundamentals remain sufficiently resilient to withstand the adverse impacts arising from external dynamics. The domestic economy still has room to generate growth, supported by domestic consumption, investment growth, and increased export value, particularly from the commodity sector, despite the risk of rising global oil prices. In addition, political and security stability, along with investment growth, are key factors in strengthening confidence among business actors and the public.
OVERVIEW OF PROPERTY INDUSTRY
Amid the achievement of national economic growth, we assess that the property industry continues to face several challenges influenced by external factors as well as evolving market conditions. In general, the property sector in 2025 exhibited a consolidation trend toward a relatively solid recovery; however, disparities in growth across sub-sectors remain evident. The residential segment continues to serve as the primary driver of growth within the property sector. This positive trend is supported by persistently high housing demand, with a backlog estimated at approximately 12–13 million units. Another key supporting factor is the Government’s extension of the 100% Government-Borne Value Added Tax (VAT DTP) incentive through the end of 2025. This policy stimulus is further reinforced by the Government’s program to develop three million housing units.
We observed that the industrial estate sub-sector also recorded growth, in line with increasing strategic investments, including the relocation of global industries to Indonesia. The Government’s strategic plan to expand new industrial estates is part of its broader efforts to achieve economic growth of 8% and to increase the non-oil and gas industrial Gross Domestic Product (GDP) to 8.58% by 2029.
The positive performance observed in these two property sub-sectors has not yet been reflected in other segments, such as apartments and office properties. The apartment residential market remains relatively subdued and has yet to regain momentum or show signs of recovery. Demand for apartment units continues to be low, primarily due to shifts in spending and investment patterns, changing consumer preferences, and relatively high supply levels. Nevertheless, we also observe a positive shift in consumer preferences toward more sustainable residential developments that are integrated with supporting facilities.
PERFORMANCE ASSESSMENT OF THE DIRECTORS AND STRATEGY EVALUATION
The Board of Commissioners is of the view that the Directors has demonstrated solid performance in managing the Company in 2025. Amid industry dynamics that continue to offer growth opportunities, as well as emerging challenges, the Directors have been able to prudently establish and implement priority policies and strategies to sustain long-term business growth. The Company’s business direction, both in the short and long term, remains on the right track. The Board of Directors has adopted appropriate policies and strategies to ensure that operational performance and business growth can be achieved in a more substantial manner.
We express our appreciation for the commitment and contributions of the Directors in maintaining business performance, managing risk aspects, and upholding governance practices, as well as demonstrating strong dedication in preserving the trust of the Company’s shareholders and stakeholders.
The Directors’ policies and strategies in maintaining sales performance are commendable. Amid a property sector that has yet to fully recover and continued weakness in consumer purchasing interest, the Company successfully sustained its sales performance, recording marketing sales of Rp1.61 trillion. Although this achievement represents 80.4% of the target, it remains relatively stable compared to marketing sales of Rp1.64 trillion in 2024. The decision to maintain a focus on residential and industrial estate segments has proven to be an effective strategy for sustaining sales performance.
From a financial perspective, the Director’s successfully maintained revenue performance. In 2025, the Company recorded operating revenue of Rp2.46 trillion, representing 97.2% of the target of Rp2.53 trillion. This achievement remained relatively stable compared to operating revenue of Rp2.55 trillion in 2024. The shortfall in achieving the revenue target was primarily attributable to lower revenue recognition from the mixed-use and high-rise segment, particularly from apartment property products.
We also observed pressure on profitability performance in 2025. Although the Company recorded a 48% increase in operating profit to Rp672.24 billion (yoy), profit for the year declined by 32.3% to Rp178.56 billion, compared to Rp263.85 billion in 2024. Nevertheless, the Company succeeded in achieving its target for profit for the year attributable to owners of the parent entity, amounting to Rp64.26 billion, or 110.8% of the target of Rp58 billion. Compared to the 2024 achievement, this figure represents a decrease of 63.2%
Another notable point is the Directors capability in maintaining financial ratios to support a healthier financial structure for the Company. In 2025, almost all financial ratios showed improvement compared to 2024. The Company also succeeded in reducing its total debt by 25% (yoy) to Rp3.08 trillion, from Rp4.11 trillion in 2024. This positive trend is in line with the deleveraging strategy, which has been one of the key priorities pursued by the Board of Directors.
SUPERVISION OF STRATEGY FORMULATION AND IMPLEMENTATION
The Board of Commissioners is of the view that the Directors has implemented its policies and strategies effectively and has been able to ensure operational stability and business continuity. We believe the Directors possess the capability to capitalize on opportunities, address challenges, optimize resources, and lead the Company toward sustained success. The 2025 performance results reflect the effectiveness of the Directors policies and strategies in maintaining a balance between pursuing business growth and exercising prudent risk management.
The Board of Commissioners has proactively carried out its supervisory function over the formulation and implementation of strategies undertaken by the Directors throughout 2025. Based on the evaluation results, the Company’s policies and strategies during the year are considered adaptive and relevant to evolving market conditions. The Board of Commissioners supports the key initiatives undertaken by the Directors, while continuing to emphasize the importance of prudence, measured risk management, and financial discipline.
OPINIONS ON THE IMPLEMENTATION OF GOOD CORPORATE GOVERNANCE AND PERFORMANCE EVALUATION OF THE COMMITTEES
The Board of Commissioners carries out its supervisory and advisory functions to the Directors with the support of the Audit Committee and the Nomination and Remuneration Committee. Supported by access to comprehensive information, the evaluation process is conducted through internal meetings of the Board of Commissioners, joint meetings with the Directors, as well as the results of self-assessment. Based on monitoring and evaluation outcomes, the Board of Commissioners, with the assistance of the Audit Committee and the Nomination and Remuneration Committee, concludes that the Company has consistently implemented the principles of good corporate governance throughout 2025. This includes financial aspects, internal control systems, audit functions, risk management, and compliance with applicable laws and regulations, all of which have been carried out effectively.
The Board of Commissioners held six (6) Internal Meetings, some of which were attended by the Audit Committee and the Nomination and Remuneration Committee, with a 100% attendance rate by members of the Board of Commissioners. The Board of Commissioners also convened ten (10) Joint Meetings with the Directors, with an average attendance rate of 100%. These Joint Meetings were conducted to coordinate and discuss periodic reports and the performance of the Directors, future business prospects and conditions, government policies that may affect the Company’s performance, as well as other strategic issues requiring collective deliberation. In these Joint Meetings, the Board of Commissioners provided directions and advice to the Directors on key matters requiring attention, prioritization, and follow-up.
The Board of Commissioners also evaluated the performance of the Audit Committee and the Nomination and Remuneration Committee, which have effectively carried out their roles and responsibilities throughout 2025. The Board of Commissioners expresses its appreciation for the performance of both committees, which have regularly reported on risk aspects, internal controls, and human capital development strategies.
Based on the evaluation of the self-assessment results, the Board of Commissioners has the view that each committee member has performed their duties effectively and has demonstrated a clear understanding of their roles and responsibilities in accordance with applicable regulations and the Company’s Charters. The Board of Commissioners will continue to promote the strengthening of corporate governance, transparency, prudence in financial management, the implementation of ESG aspects, as well as the utilization of digital technology to support business processes and decision-making.
CHANGES IN THE COMPOSITION OF THE BOARD OF COMMISSIONERS
In 2025, there was a change in the composition of the Company’s Board of Commissioners following the expiration of the previous term of office. Through the Annual General Meeting of Shareholders (AGMS) held on May 28, 2025, the composition of the Board of Commissioners consists of four members, namely the President Commissioner and Independent Commissioner, the Vice President Commissioner, and two Independent Commissioners. The members of the Board of Commissioners comprise Mr. Dr. Sofyan A. Djalil, SH, MA as President Commissioner and Independent Commissioner, Mr. Sinarto Dharmawan as Vice President Commissioner, and Mr. Friso Palilingan and Mr. Alexander S. Rusli, each serving as Independent Commissioners.
The Board of Commissioners expresses its appreciation and gratitude to Mrs. Ping Handayani Hanli, Mr. Thio Gwan Po Micky, and Mr. Jahja Asikin for their dedication and outstanding contributions during their tenure as members of the Company’s Board of Commissioners
Following this change, the Company has three (3) Independent Commissioners, representing 75% of the total members of the Board of Commissioners, thereby fulfilling the requirements set forth in Financial Services Authority Regulation No. 33/POJK.04/2014. The change in the composition of the Board of Commissioners in 2025 continues to reflect a balance of competence, experience, and independence. The diversity of backgrounds among the members of the Board of Commissioners serves as an important factor in enriching strategic perspectives and enhancing the quality of decision-making.
VIEW ON LONG-TERM BUSINESS PROSPECTS
The Board of Commissioners views that the Company’s future business prospects remain solid and positive, supported by strong national economic fundamentals and growth opportunities in the property sector. The escalation of global security requires serious attention, particularly assessing potential impacts on domestic stability and the continuity of the Company’s operations.
We observe that demand for residential properties remains relatively strong, while growth potential in the industrial estate sector is expected to be a key factor in supporting business performance. Nevertheless, the Company must remain vigilant regarding various external risks, interest rate dynamics, and shifts in property market preferences. We support the Board of Directors in adopting more realistic policies, strategies, and targets, considering the associated risks and available resources. The Board of Commissioners encourages the Directors to further strengthen business strategies through product innovation, enhanced operational efficiency, and the integration of sustainability principles in all business developments.
APPRECIATION
On behalf of the Board of Commissioners, I would like to express our gratitude and appreciation for the dedication and hard work of the Directors, employees, supporting committee members, customers, partners, shareholders, and all stakeholders for their contributions and support throughout 2025.
With strong commitment, sound strategies, and the implementation of good corporate governance, the Board of Commissioners is confident that the Company will continue to grow sustainably and create added value for shareholders and all stakeholders.
DR. Sofyan A. Djalil
President Commissioner and Independent Commissioner