Message from Board of Commissioners

The year 2006 was a year full of challenge, in which the Company faced many hindrances, such as high and unstable world oil price, business competition in regional, unstable domestic economic condition and the people purchasing power which was still weak. Nevertheless, the Company responded these hindrances as a challenge and grab the lesson as references for the future.

The increase in alkylation unit capacity completely done at the end 2005 has not granted the satisfaction result in this year. But, the sale of Alkylbenzene was stable with increasing by 5% whilst the price of world crude oil and domestic fuel are still high. The endeavor of the Company to have the efficiency in cost is reflected from the Company’s success in switching from using diesel fuel to other alternate fuel which is more cheaper. The property segment, a new segment for the Company commenced to grant contribution this year.

The Board of Commissioners is satisfied to the performance of the Board of Directors during 2006, even though having many challenges but it did not make the Company got losses. Due to the experiences, professionalism, hard working and tough willingness to be the best, in 2006 the Company succeeded to maintain the product quality, domestic market share and showed the healthy financial performance.

To increase the Company’s performance, the Board of Directors had planned to invest in upstream industry which will strengthen the Company’s position by having the continuity material supply. In regards to the end of the Board of Commissioners tenure, the Annual General Shareholders Meeting on July 19, 2006 in Jakarta has apppointed a new Board of Commisioners as follows:

Mr. Hartono Gunawan - President Commissioner
Mr. Hanny Sutanto - Vice President Commissioner
Mr. Indrawan Masrin - Commissioner
Mr. Teddy J. Katuari - Commissioner
Mr. Farid Harianto - Independent Commissioner
Mr. Rasidi - Independent Commissioner

On December 19, 2006, Mr Hartono Gunawan resigned from his position as the President Commisioner of the Company. We will appoint his successor in the next Annual General Shareholder Meeting and we shall continue to maintain our commitment in delivering transparant information by steadily providing all information needed by the shareholders in a timely manner.

Since 2001, the Commissioner is supported by the Audit Committee in reviewing financial statement, independency of public accountant, internal control, and the Company’s obedience to regulation and other things that need the Board of Commissioners’ attention.

We as the Board of Commissioners, are always do our best to encourage the Board of Directors and our employees to increase the productivity in upcoming years. We are hoping that in the future, the Company will give a better performance to the shareholders.

Therefore, we would like to thank and give the highest award to the Board of Directors and all of the employees for their dedications and contribution to the Company.

At last, we pay tribute to our shareholders, creditors, partners, suppliers, customers and other parties that give trusts and support to us, so we can continuously grow until now. Please also allow me on this chance on behalf of shareholders, directors and employees to thank Mr Andi Hartandi, the President Commissioner for the period of 2001-2006 and to Mr Hartono Gunawan that has been with us for the past 12 years which has shared his professionalism spirit and dedications in nurturing and bringing success to the Company.