Board of Commissioners

 

From left to right : Mrs. Muliany Anwar, Mrs. Linda Lius, Mr. Kumhal Djamil, Mr. Hardi Sasmita, Mr. Tan Huiliang, Mr. Tjahyadi Lukiman

 

Dear Shareholders,

By delivering a gratitude to God Almighty for His grace and gift that have been bestowed to all of us, onthis occasion, on behalf on the Board of Commissioner, we convey the Annual Report as a Company'sresponsibility to Shareholder in particular and to Public in general.

In 2016, Indonesian economy grew by 5,02%, higher than the rate in 2015, which amounted to 4,88%. Apart from the restrained inflation rate last year, this growth was caused by the consumer's trust index which wasrelatively high. Several economic policies that are implemented to accelerate infrastructure developmentand improving investment as well as business climate, and cutting logistic costs as well as improving budgetexecution, led us to believe that Indonesia is able to deal with pressures coming from external situation.World Bank predicted that Indonesia's economic growth will rise and reach 5,3% in 2017.

We should be grateful that Company went through the year2016 with a very satisfactory achievement. Looking at theoperational aspect, total cable sales in 2016 amounted toRp2 trillion, an increase of 26% compared to 2015. Thiswas caused by the rise of infrastructure projects, especiallyelectricity and telecommunications. Company's net incomeamounted to Rp160 billion, a signi cant increase comparedto the previous year.

Entering 2017, there will be a number of challenges thatwe must face, both from within and outside the country.The coming years are more difficult to predict if comparedto previous years, because in addition to global economicuncertainty, we are also faced with the global politicaluncertainty. From overseas, there is uncertainty in free tradearea, where the United States went out of the TransatlanticAgreement, as well as other uncertainties such as the exit ofthe UK from the European Union. From within the country, weneed to be aware of the problem of employment, tight moneypolicy, and inflation. Nevertheless, as long as the governmentinfrastructure programs Indonesia are still ongoing, the Boardof Commissioner is very optimistic about the prospects andperformance of Voksel in the years to come.

Furthermore, Indonesia's economic growth looks promising.There are several major capital underpinning economicgrowth in Indonesia, namely the increment of the public trustin government, along with the capital market and the moneymarket and foreign exchange reserves which are muchbetter than in previous years and there are an upward trendin commodity prices that have been seen at the end of 2016and this trend is predicted will be continue in 2017. Seeingall the above elements, we believe that the Rupiah will remainintact and stable against foreign currencies, which will drivethe Company's rate development become better. Thisoptimism is also supported by the controlled inflation.

The Board of Commissioner realizes that a sustainableincrease in the Company's performance can only berealized if the company implements corporate governanceconsistently. For that we always pay special attention tothe supervision of the good corporate governance (GCG)implementation in accordance with the standards establishedby the shareholders, regulators and applicable best practice. In carrying out the functions of monitoring and providing advice to the Board of Directors, during 2016, the Boardof Commissioner has held meetings both BOC's internalmeeting and joint meeting with the Board of Director. Themeetings may be regular meetings to monitor performanceon a regular basis.

The Board of Commissioner realizes that a sustainableincrease in the Company's performance can only berealized if the company implements corporate governanceconsistently. For that we always pay special attention tothe supervision of the good corporate governance (GCG)implementation in accordance with the standards establishedby the shareholders, regulators and applicable best practice. In carrying out the functions of monitoring and providing advice to the Board of Directors, during 2016, the Boardof Commissioner has held meetings both BOC's internalmeeting and joint meeting with the Board of Director. Themeetings may be regular meetings to monitor performanceon a regular basis.

Based on report received by Audit Committee, concluded thatthe Consolidated Financial Statements have been prepared inaccordance with generally accepted principles in Indonesia,internal control function has been implemented effectively,Good Corporate Governance policies implemented by theBoard of Directors is accordance with the regulations of theCapital Market and the Indonesia Government, there is noviolation of the regulations of the Financial Services Authority(FSA), the Indonesia Stock Exchange (IDX) as well as otherIndonesian Government's law.

BOC assesses that the Board of Director have a goodperformance, as is reflected in the figures along with ratios inthe financial statements. BOC always supports policies andactions of the BOD to increase the Company's performance,both to increase export sales and establish investmentpriorities that support the operations and improve thereliability and production capacity of the plant. The Companyhas gone through a phase of consolidation and has recordeda profit with a significant amount in 2016, and will enter 2017with a much better condition. With government infrastructurespending remains high, we are optimistic that the challengingtargets set for 2017 can be realized even exceeded.

On this occasion, the BOC delivers our gratitude andappreciation to the Board of Directors and the board ofmanagement and all of employees for their hard work anddedication that has been given until today. A big thank youto the Shareholders, Customers, Partners, Creditors andSociety for the support, trust and cooperation provided in2016. Hopefully, the Company can better take part again inthe years to come.

 

Jakarta, April 2017