Report of the Board of Commissioners
The Board of Commissioners views that the Board of Directors has demonstrated its commendable achievement. The sustainability of PT Intiland Development Tbk in surviving the economic downturn is the proof of the Board of Directors' capability in keeping the business running.
Distinguished Shareholders and Stakeholders,
2016 was a challenging year for the Indonesian economy as it mirrors the uncertainties in the global economy. Encouraging signs of a mild recovery in the local economy were only witnessed towards the end of 2016; although that impact was not felt in the property sector.
Evaluation of the Board of Directors
Despite the less-conducive economic environment, the Board of Commissioners would like to commend the Board of Directors for executing their duties competently. Intiland’s financial performance was positive. In 2016, Intiland was awarded the Best Developer and Padmamitra Awards (for the company’s continuous CSR programs).
Given the volatility and tough economic backdrop in 2016, the Board of Directors postponed the launch of several mixed-use and high-rise projects in Jakarta and Surabaya. Other actions were undertaken to strengthen the Company’s capital structure. The Company’s overall strategy was reviewed and re-jigged in preparation for the market’s upturn. The Company’s performance was stable despite a year-on-year 13% decline in marketing sales.
The Board of Commissioners remained very vigilant in engaging with the Board of Directors on all matters relating to the company’s overall strategy and implementation. In 2016, the Board of Commissioners held 9 (nine) joint meetings with the Board of Directors.
Implementation of Corporate Governance
The Board of Commissioners is highly involved in ensuring a consistent implementation and strong culture of Good Corporate Governance (“GCG”). Improvements are continually made to ensure optimal implementation of the GCG culture throughout the Company. These improvements are made and implemented largely through the Internal Audit and Nomination and Remuneration Committee. The Audit Committee is largely involved in ensuring the effectiveness of the risk management and control processes that are established. The Board of Commissioners are satisfied that the Nomination and Remuneration Committees have executed their roles dutifully.
The Board of Commissioners is pleased that the setting-up of a whistleblowing system is now completed. A system is in place to deals with most, if not all, financial and non-financial violations. In 2016, 2 (two) violations were reported to and dealt with by the Internal Audit.
Composition of Board of Commissioners
No change was made to the members of the Board of Commissioners.
Business Outlook 2017
The mild economic recovery witnessed towards the end of 2016 is expected to gain a more moderate uptick. The company expects 2017’s performance to be than that in 2016.
The several infrastructure projects planned and started by the government is expected to have positive spill-over effects on the overall economy and the property sector.
Lastly, the Board of Commissioners would like to thank the Board of Directors, and all its employees, customers, business partners and Stakeholders for their continual dedication and support.
Jakarta, April 2017
On behalf of the Board of Commissioners of PT Intiland Development Tbk
Dr. Cosmas Batubara