Management Reports

Report of the Board of Commissioners

Kosmian Pudjiadi, BSISE, MBA President Commissioner

Respected Shareholders,

Our praise and gratitude to The God Almighty, may His blessings and grace always be bestowed upon us all. The Board of Commissioners is grateful that the company succeeded through 2019 quite well amid the national economy that faces the challenges of increasing global uncertainty.

Throughout 2019, The Board of Commissioners has performed its duties and responsibilities   conforming to the Articles of Association and Provisions of the Authority as well as supervising the implementation of the duties of the Board of Directors concerning policies of the Company's management.

The Board of Directors Performance Evaluation


The Board of Commissioners evaluates the Board of Directors’ performance which covers operational, financial, and other aspects that are closely related to the sustainability of the Company's business activities.

The Board of Commissioners views that the Board of Directors has made its best efforts despite the declining operating income by 21.64% from Rp86.47 billion in 2018 to Rp67.76 billion in 2019. This decrease was due to the revenue recognition for Cikarang property sales falling by 37.73% from Rp17.81 billion in 2018 to Rp11.09 billion in 2019. However, by its hard work, the Board of Directors managed to increase rent income by 20.26% from Rp33.31 billion in 2018 to Rp40.06 billion in 2019.

The Board of Commissioners concludes that the Board of Directors has performed its responsibilities in accordance with their respective fields of work, has been well-coordinated and cooperated, which led to the Company’s positive performance of booking a Net Profit of Rp4.34 billion in 2019.

GCG Implementation

The Board of Commissioners continuously evaluates the progress of Good Corporate Governance (GCG) implementation. In implementing the GCG principles, the Board of Commissioners views that the synergy between the Board of Directors and the Board of Commissioners becomes the main force for implementing openness and accountability. The Company always ensures compliance and conformance to the laws and regulations and sound business practices.

Performance Evaluation of the committee under the Board of Commissioners

 Carrying out its duties and functions of supervising the company's operations, the Board of Commissioners is assisted by an audit committee.

The Audit Committee is tasked with ensuring internal control implementation and assisting the Board of Commissioners to oversee the implementation of the Company's internal and external audit functions. During 2019 the audit committee has carried out its duties which include monitoring the financial audit process to ensure that the financial statement targets audited by the KAP are reported regularly in the annual report in conformity with the specified time target and receive an unqualified opinion.

The Board of Commissioners appreciates the audit committee for its full support to The Board of Commissioners in carrying out the Board’s duties and responsibilities.

Dividend Distribution to Shareholders

Conforming to the Resolution of the General Meeting of Shareholders dated May 16, 2019, the Company has distributed to all of its Shareholders Cash Dividend of Rp1 - per Share or Rp329.56 million in total and was paid on June 14, 2019.

Company's 2020 Business Outlook

Ir. Joko Widodo’s re-election as the President of Indonesia, with KH. Ma'ruf Amin as the Vice President for the 2019-2024 period, along with the new cabinet lineup was responded positively. This also brought out Indonesia’s optimism to 2020 as he reaffirms his commitment to continuing the infrastructure development program in the Second Period which is believed to indirectly impact the growth in property sector.

By taking these factors into account, welcoming the year 2020, the Board of Commissioners concludes that the Board of Directors has developed appropriate strategies, especially to continue developing the Company's business through Sales and Leasing activities. The Board of Commissioners has also provided inputs to the Directors regarding the Sales and Leasing strategies as both activities are the source of income which is expected to make a significant contribution to the Company.

Kosmian Pudjiadi, BSISE, MBA
President Commissioner