Report of the Board of Commissioners

Dear Shareholders,


2020 was a truly difficult year for the global economy as the Covid-19 pandemic delivered a devastating blow to all economies around the world. Businesses, lives and and livelihoods were gravely impacted and the global outlook was grim – as the world experienced an unprecedented number of covid infections and deaths. Whilst the recent roll-out of vaccines has given rise to much optimism, particularly in the developed countries, the situation remains uncertain, as the global distribution of these vaccines appears likely to remain uneven for a longer time.

In Indonesia, businesses across different sectors in the country were severely impacted as the pandemic wreaks chaos on economic activities nationwide. Mirroring the global impact, only a handful of sectors, such as e-commerce and healthcare products and services, thrived, as all other sectors, such as airlines, hotels, retail shops, etc. were battling for survival. The devastating impact of collapsed sales caused major disruptions to business operations and thus their cash flows; even as most employees are forced to work from home and many others are laid off.

Adding to what was already a very difficult situation, some critical policy stimuli introduced by the Government in 2019 could not be fully and effectively implemented. The government was forced to shift its focus to containing the pandemic The National Statistics Agency of Indonesia reported that the national economic growth in 2020 registered a growth rate of minus 2.07%; better than the Government’s projection, at the beginning of the year, of minus 2.2%. In the fourth quarter of 2020, economic growth recorded a contraction of minus 2.19% (YoY); an improvement from the contraction in the third quarter of minus 3.49% (YoY). The better than forecasts economic numbers provide some optimism for businesses regarding the direction and trend of economic growth in 2021.

Prior to the pandemic, the property sector experienced a slowdown in the last 5 years. The sudden occurrence of the pandemic exacerbated the situation. All investment and development plans were stalled or delayed as sales in all segments plunged; from landed and high rise housing to offices, industrial estates, and hotels. Not one company was spared. All the companies were forced to review their investment and development plans, and almost all had to restructure their financial commitments.

Notwithstanding the difficult environment, the Company recorded marketing sales of Rp937 billion against its target of Rp2.5 trillion. This amount does not include recurring income from the investment property segment of Rp Rp598 billion. In terms of financial performance, the Company posted operating revenue of Rp2.89 trillion, and net profit of Rp76.77 billion.



The Board of Commissioners would like to commend the Directors for their resilience, sacrifice, and hard work in ensuring the company’s well-being. The Directors responded swiftly on managing the company’s cash flow by introducing pay-cuts for all the senior and middle management staff, reviewing and slowing down the development of all projects, and deferring the launch of others. The Board of Commissioners is appreciative of the decisiveness and prudence demonstrated by the Directors.



One of the main duties of the Board of Commissioners is to carry out supervision and monitoring of each policy to achieve the expected results through the implementation of good corporate governance (GCG). The Board of Commissioners together with the Directors ensure that GCG implementation is carried out properly by all organs and in all activities of the Company. The Company always complies with all applicable laws and regulations in an effort to increase stakeholder trust. The Board of Commissioners is responsible for ensuring that every policy is in line with GCG principles and does not violate existing regulations.

Throughout 2020, the Board of Commissioners held four Board of Commissioners meetings and ten joint meetings with the Directors to discuss developments in the current situation and conditions, problems, risks and mitigation solutions to be taken. Regarding the Audit Committee, the Board of Commissioners has assessed that the committee has carried out its role and function properly and effectively in order to support the Company’s business growth in a sustainable manner throughout 2020. For the Nomination and Remuneration Committee, as well as the Risk Management Committee, we have assessed that these committees have successfully carried out functions and duties properly, and therefore contributed to the Company’s progress in 2020.

The Board of Commissioners expresses its appreciation to these committees’ members who have in all earnestness contributed their mind, energy, and commitment to jointly foster a synergy to ensure the Company’s ongoing business development.



In 2020, the Company changed the composition of the Board of Commissioners. Through the resolution of the Annual General Meeting of Shareholders held on 15 August 2020, the Shareholders approved the appointment of Mr. Sinarto Dharmawan as the Company’s President Commissioner, who had previously served as Vice President Director of the Company. Additionally, Mr. Friso Palilingan was appointed as an Independent Commissioner. The meeting also approved changes to the composition of the Directors of the Company, with the appointment of Ms. Ping Handayani Hanli, previously a Commissioner of the Company, as a Director.



On behalf of the Board of Commissioners , I would like to express my gratitude and appreciation for the resilience, sacrifice, and hard work of the Directors and all our staff, including our customers, partners, shareholders and all other stakeholders. I believe that we will overcome this crisis – just as we did during the Asian Financial crisis and also the Global Financial crisis.


Sinarto Dharmawan

President Commissioner