Ciputra Property Tbk PT : Penyelesaian Saham Odd Lot CTRA sebagai Hasil Penggabungan

Esteemed Shareholders and Stakeholders,

On behalf of the Board of Commissioners of PT Ciputra Property Tbk, I would hereby like to present the report on our supervisory activities and the results achieved by the Company in 2013.

As economies in Europe were still struggling to rid themselves of the prolonged debt crisis, and the United States planned to taper their quantitative easing program, emerging economies experienced a stalled growth in 2013. Emerging economies, which are to a large extent dependent on foreign funds, were hurt by the massive capital flight from these countries back safer investment havens in 2013. Indonesia's rupiah depreciated by 26% throughout the year, reducing the purchasing power for property products. This created a significant pressure on the actually thriving property sector in the country.

In reaction to this market movement, the national monetary authority, i.e. Bank Indonesia, issued a policy that matches asset value to the loan applications for property ownership, known as the loan-to-value (LTV) policy, and increased the benchmark interest rate. These measures created a cap on the growth of the national property industry.

Amidst such challenges, we see that the Company under the management of the Board of Directors was able to deploy its strategic policies to achieve a number of milestones in 2013, fueling our optimism to face the business in 2014.

In general the Board of Commissioners is satisfied with the performance shown by the Board of Directors in their consistent and optimal execution of their commitment in running the business prudently. The Company has been managed in adherence to good corporate governance principles, as indicated, among others, by its ability to post consistent positive growth over the years. The Company has also been successful in achieving its targets, although in the third and fourth quarters of 2013 it faced significant challenges due to a less conducive business environment. However, the responsiveness of the Board of Directors in planning and executing the right anticipatory measures have enabled the Company to achieve a growth rate that exceeded that of the previous year.

The Company demonstrated its solid performance in 2013 by completing the Ciputra World 1 Jakarta project, which marked the commencement of the operation of its mall and offices. This would strengthen the Company's business especially in the recurring income segment.

In the same year, the Ciputra World 2 Jakarta project was 33% finished. The completion of the Ciputra International project, which was undertaken by our subsidiary PT Ciputra Puri Trisula, added to the Company's product portfolio and contributed to the creation of our stronger business fundamentals. This is a highly prestigious project and the potential to become a new landmark thanks to its central location and its smart and characteristic building design and concept.

The Board of Commissioners witnessed how the Company has shown a sustainable and good corporate governance throughout its business, among others through the implementation of the balanced scorecard method in all business units, which directly improved the ability of the team to control each of its businesses. In addition, reputation-an intangible asset-was successfully built and maintained, serving as a crucial pillar for subsequent business development.