The Board of Commissioners highly appreciated the Directors’ proud-making working performance in 2018. The Directors had carried out its best performance to produce the remarkable Company’s outcomes.

The honorable shareholders and stakeholders,,

We would like to deliver the Board of Commissioners’ Report for its role in supervising and advising the Directors throughout 2018. In working its responsibility, the Board of Commissioners upholds the independency principles and focuses on the attainment of the Company’s vision to “Become The Biggest, The Most Credible, and Sustainable National Toll Road Company” and missions, especially the first mission to “Lead The Toll Road Business in All The Value Chain Professionally and Sustainably As An Attempt to Improve The National Connectivity”.

Evaluation of The Board of Commissioners’ Working Performance in 2018

The evaluation of the Board of Commissioners’ working performance was held through a self-assessment by referring to the Board of Commissioners’ Decree No. KEP-153/XI/2016 on November 7, 2016 concerning The Determination of System Revision for PT Jasa Marga Board of Commissioners’ Working Performance Self- Assessment through the Board of Commissioners’ Key Performance Indicator set in the Board of Commissioners Meeting on January 24, 2018. The Board of Commissioners’ self-assessment marked the “A” (excellent) score that equaled to 4.81 at the end of December 2018 exceeding the target set as 4.50.

Supervision to the Implementation of the Company’s Strategies

In supervising the implementation of the Company’s strategies, the Board of Commissioners utilized the direct and indirect mechanism. The direct mechanism was held by visiting the places and units of the Company’s activities by firstly notifying the Company’s Directors. Meanwhile, the indirect mechanism was held through the meeting by inviting the Directors.

Throughout 2018, the Board of Commissioners had visited a number of places which include Nusa Dua-Ngurah Rai-Benoa Toll Road; Trans Jawa, Purbaleunyi Branch, Semarang Branch, and Belmera Toll Road Project; and Manado-Bitung Toll Road. The Board of Commissioners evaluated that the Company’s strategies had been well implemented as the previous working performance indicators could be well reflected.

Advising Procedures and Frequencies to the Directors

The Board of Commissioners had determined the annual work program of The Board of Commissioners in 2018. Meetings were held at least twice monthly which include the meeting of the Board of Commissioners as well as the coordination of the Board of Commissioners and Directors.

In implementing its duties and responsibilities by advising the Directors, the Board of Commissioners deployed the meeting mechanism with the Directors and others as agreed by the Board of Commissioners and The Decree of the Board of Commissioners. By the organization of the annual working programs of the Board of Commissioners, the supervising and advising agenda for the Directors in managing the Company could run more effectively and right to the target.

Throughout 2018, the Board of Commissioners had conducted 13 (thirteen) internal meetings of the Board of Commissioners as well as 12 (twelve) times of meeting with the Directors. The meetings produced 41 (forty one) agreements and 21 (twenty-one) decisions.

Every decision produced from the meeting was supervised and evaluated as an attempt to determine the next measure. By the end of 2018, more than 90% meeting results had been processed, while the remains were at the completing. The majority of which were expected to be completed by beginning of 2019.

Evaluation on the Directors’ Work Performance

Fulfilling the Board of Commissioners’ functions and duties based on the SOE Ministerial Regulation No.01/ MBU/2011 on August 1, 2011 concerning The Application of Good Governance in SOE as explained farther in the SOE Ministerial Secretary Decree No. SK-16/S. MBU /2012 on June 6, 2012 concerning the Indicators /Parameters of Assessment and Evaluation of The Application of Good Governance, by the Attachment I/6-15 concerning the Aspects of Test/Indicators for Point 17 of the Parameter 58 and 59, and the Aspects of Test/Indicators for Point 19 of the Parameter 67 as mentioned to supervise the Directors in implementing the Company’s strategies and policies, subsidiaries’ management, their roles the candidacy of the Directors’ members as well as individual and collegial assessment of the Directors’ performance, and the proposal of the Directors’ tantiem and remuneration based on the prevailing regulations, thus the Board of Commissioners has evaluated the Directors and reported the result to the A Series Dwiwarna Shareholders.

The Board of Commissioners highly appreciated the Directors’ proud-making working performance in 2018. The Directors had carried out its best performance to produce the remarkable Company’s outcomes.

Macro-Economy Review

The Board of Commissioners is aware that the Directors’ performance was inseparable from the national and global macro-economic condition. The national economy was still able to grow well reaching 5.17% which was higher than the previous year’s that only reached 5.07% in spite of challenging global economy. The government also succeeded in maintaining the low inflation rate at 3.13% to keep the stable public purchasing power in spite of weakening Rupiah fluctuation to the USD.

The stable national economic condition has boosted the growth of toll road concession industry and toll road operational industry projected at 22% respectively from 2015 to 2025. The opportunity of the macro-economy had been well comprehended by the Company through the improvement of operational and financial performance in 2018.

Macroeconomic conditions that move in a positive direction have been well utilized by Directors who have succeeded in improving the Company’s performance in 2018. The Board of Commissioners gave awards to the Directors and the management of Jasa Marga for giving the best contribution to the Company.

In 2018, the Company succeeded in increasing toll revenues by 9.1% from IDR 8.281.3 billion in 2017 to IDR 9.036.4 billion in 2018. This increase was mainly due to a significant increase in the revenue of the Surabaya-Mojokerto toll road and Medan-Kualanamu-Tebing Tinggi toll road as a result of the operation of the Surabaya-Mojokerto Toll Road section of Sepanjang-Krian in December 2017 which had a full impact in 2018. Sepanjang-Krian Section is the missing link of the Surabaya-Mojokerto Toll Road so that the operation of this toll road can encourage the growth of PT Jasamarga Surabaya Mojokerto toll revenues. While the increase in toll revenues at PT Jasamarga Kualanamu Tol was caused by the operation of new sections and connectivity with Belmera Toll Road which also had a positive impact.

The increase in transaction traffic accompanied by changes in toll rates has been able to increase the Company’s business revenue. In addition, the Company is also able to implement an effective connectivity strategy to encourage revenue growth. The Company’s operating income reached IDR 36.97 trillion in 2018. This achievement increased by IDR 1.89 trillion or 5.36% from 2017 which reached IDR 35.09 trillion.

The increase in income has been managed well, so that the Company’s operating profit in 2018 has increased. Achievement of operating profit reached IDR 5.42 trillion, an increase of 16.50% or IDR 767.15 billion from 2017 which reached IDR 4.65 trillion.

Achievements of Key Performance Indicator

Directors’ assessment in 2018 was carried out with one of the things that became the assessment material for the performance of Directors to evaluate its performance in achieving KPI targets per Directorate submitted and reported in the Quarterly Company Management Report. In addition, it also assessed its compliance in running the company in accordance with the Company’s Budget Work Plan and/or Company Long Term Plan, as well as the performance of Directors in following up decisions of the Board of Commissioners and Board of Commissioners coordination meetings with Directors and following up on suggestions and recommendations an audit of an external auditor (Public Accountant Office) as well as compliance and/or fulfillment with the provisions stipulated in an agreement with 3rd Party.

Corporate Main Performance is considered in good condition if the total performance value is reached and exceeded. Financial performance is considered good, as seen from the indicators of financial ratios realized above the target. Development performance was considered quite well if its main performance achieved is higher than planned, but some performance was below the target, including the progress of implementing several toll road projects. HR & General performance is considered quite well if the fulfillment of competencies can be achieved according to the target, even though the CSR program is slightly below the target. The performance of the Operations Directorate I was considered to be quite good, as seen from programs relating to information technology development, most of which had been completed, and the construction of TIP in Toll Road and Branch Subsidiaries had been partially completed. The performance of the Operations Directorate II is considered quite good, in which the toll road sections have met Minimum Service Standards.

Based on the above assessment, the Directors’ KPI in 2018 has exceeded the target. The realization of the Directors’ KPI achievement in 2018 is 110.57%.

In terms of evaluation of follow-up meeting decisions, each decision of the Board of Commissioners meeting and coordination meeting of the Board of Commissioners and Directors were followed up by the Directors and its implementation were monitored.

Based on the Board of Commissioners’ evaluation and assessment , the Directors have complied with applicable laws and/or provisions stipulated in agreements with third parties.

Review on the the Business Prospects Developed by the Directors

The relatively stable national economic condition by the consistent growth and low-rate inflation were a number of factors considered by the Board of Commissioners to judge that the Company’s business prospects developed by the Directors had run straightly.

Another matter that underlined the Board of Commissioners’ review in assessing the Company’s business prospects was the determination of the National Mid-Term Development Plan for 2015/19 period, one of its objectives was to improve the national connectivity. One of the government’s targets to improve the national land connectivity was the development of 1,000 km new toll roads. The Board of Commissioners stated that the Directors would be able to take the opportunity to sustain the Company’s performance for long-term growth.

The Company’s Development Plan

In regards to the Company’s Development Plan as mentioned in The Company’s Long-Term Plan (RJPP) for 2018-2022 period which is in line with the government’s plan in the infrastructure development that requires significant investment, the Board of Commissioners advised the Directors pertaining to the foundation of the Company’s policies and strategies for its short- and long-term financial projection.

The Directors were demanded to prepare a number of corporate measures to anticipate things that might affect the Company’s business and condition. The measures of which could be in the form of the organization of risk management and mitigation. Additionally, the objectives formulated in the RJPP of 2018-2022 would be reached well. The Directors were advised to focus on the improvement of business efficiency and effectiveness information technology application quality for the toll road security and transactional integration, non-toll revenue potential optimization, financial engineering to reduce loan interest and/or obtain competitive/affordable investment sources, fulfillment of competent, integrated, and professional Human Resources, as well as transformation followed by organizational structure adjustment

The Board of Commissioners’ Agreement for the Corporate Work Plan and Budget (RKAP) in 2019

To fulfill the regulation mentioned in the Company’s Articles of Association Article 17 Verse 3 and 4 concerning the Corporate Work Plan and Budget (RKAP), the Board of Commissioners delivered its point of view and agreement for the RKAP draft delivered to the Board of Commissioners not later than 30 days before the new book year. Meanwhile, the Board of Commissioners’ agreement was delivered not later than 30 days after the implementation of the fiscal year.

After running through several revisions, the Board of Commissioners in principle agreed with the proposal of RKAP 2019 as the agreement had been verified and set as RKAP 2019 at the coordinating meeting of the Board of Commissioners and Directors on January 28, 2019.

Evaluation And Assessment on the Directors’ Obedience in Operating the Company Based on the RKAP 2019 and RJPP 2018-2022

The Board of Commissioners evaluated that the Directors had obeyed the regulations in operating the Company based on the RKAP 2018 and RJPP 2018-2022.

The obedience to the determined regulations in the RJPP 2018-2022, include the agreement that in implementing the Company’s strategic guidance and transformation program that required the brief job division in every business line, the Directors had proposed to amend/revise the organizational structure being a short-term organizational structure based on the RJPP 2018-2022. The proposal of organizational structure revision was agreed by the Board of Commissioners at the end of November 2018 after fulfilling a number of requirements relating to the legal and business, operational, and human resources aspects.

In regards to the corporate actions including the addition of the Company’s investment activities, the Board of Commissioners had discussed and advised the Directors to hold a study for the RJPP 2018-2022. According to the Directors’ explanation, the Board of Commissioners in principle accepted the review of RJPP 2018-2022.

The Guidance from the Board of Commissioners to the Directors on the Implementation of the Company’s Plans and Policies

In regards to the aspect of the change in the business environment that might have a significant impact on the Company’s business and performance, the Board of Commissioners provided guidance in the form that various efforts ought to be performed to anticipate the changes of external factors as they could affect the Company’s performance, including the impact of continuation and the realization of the government’s programs in accelerating the infrastructure development especially the provision of transportation facilities and infrastructures such as the construction of 1,500 km toll road in Java, Sumatra, Kalimantan and Sulawesi by 2019 in addition to the infrastructures related to the toll road business investment. Those programs required the fulfillment of a significant investment that might affect the Company’s financial condition. The matter of which ought to be managed properly well anticipated, thus the Company would not be affected in terms of its business and performance. Additionally, the increasing competition and the growing public transportation facilities performed by domestic and foreign investors indicated that the operation of those facilities and infrastructures would require the utilization of modern and integrated information technology.

The right and effective financial strategies and engineering should be carried out with the improvement of the toll road efficiency and effectiveness as well as the organization and Human resources transformation. The Directors must put attention to the preparation and procurement of the Company’s resources should include the professional, reliable, and integrated Human Resources as an attempt to run the effective, efficient, and clear toll road business based on the principles of Good Governance.

In addittion, guidance was also given in regards to policies as well as career and remuneration system development which should be in line with the Company’s growth and development in performing the toll road and non-toll business.

In regards to the aspect of accounting policy and financial report arrangement based on the financial accounting standard, after studying the Audit Committee’s report, the Board of Commissioners encouraged the Directors to improve the effectiveness of financial management.

In regards to the aspect of procurement and implementation policy, the Board of Commissioners demanded the Directors to study the current efficiency and effectiveness of the goods/service procurement, determine the procurement modernization required by Jasa Marga, and set the program timeline for the existing goods/service procurement transformation.

Lastly, in regards to the aspect of quality, service, and implementation policy, the Board of Commissioners delivered a remark to the Directorsto fulfil Minimum Service Standards (MMS) as soon as possible.

Views on the Implementation of Good Corporate Governance

The increase in the Company’s performance is the result of effective implementation of good corporate governance (GCG). The principles of GCG, namely transparency, accountability, responsibility, independence and fairness have been well implemented by the Company. These principles have been implemented through various GCG mechanisms such as risk management, internal control system, whistleblowing system (WBS) and corporate social responsibility.

Compliance Towards Laws and Regulations and Internal Control

In accordance with the spirit of the principles of good corporate governance, namely in complying with the existing laws and regulations, the Board of Commissioners monitors and ensures that the Directors will hold an Annual General Meeting of Shareholders.

In this regard, the Board of Commissioners, assisted by the Audit Committee encourages and ensures the implementation of KAP audits of the Company’s consolidated financial statements and KAP independent audit reports on compliance with laws and regulations and internal controls can be properly resolved according to the schedule set.

Assessment on the Implementation of Good Corporate Governance (GCG) in 2018

Assessment on the implementation of 2018 Good Corporate Governance (GCG) of the Company was carried out by independent parties with a total value of 97.823 of the total maximum value of 100.000 which was equivalent to 97.82% or achieving a “Very Good” qualification.

Regarding the implementation of the duties and obligations to provide supervision and advice to the Directors in managing the Company, the Board of Commissioners consistently prioritizes the implementation of the principles of good corporate governance (GCG). The results of assessment on the implementation of GCG in the Board of Commissioners in 2018 was 98.89% with the assessment classification of “Very Good”.

Risk Management

As with other business activities, the toll road business also faces various risks. Toll road businesses are large investments that have business uncertainty, both during construction and operation. In addition, the toll road business also has a long investment return period, thus, risk management has a very important role in making sure of the achievement of the Company’s performance.

The Board of Commissioners asks the Management always strives to guarantee and supervise the effectiveness of the implementation of risk management. In the view of the Board of Commissioners, the Risk Management implemented by the Company has run well. The maturity level of the Company’s management system has reached the level of Proficiency, which indicates that the Company has been consistent in implementing risk management.

Internal Control System

The Board of Commissioners strongly emphasizes the implementation of the Company’s internal control system is very much needed in providing confidence in the achievement of operational effectiveness and efficiency and the reliability of reporting and compliance with applicable laws and regulations. The Board of Commissioners views that the Company has an integral internal control system for actions and activities carried out continuously by the leaders and all employees.

The Company also refers to international best practice standards, namely the internal control framework developed by the Committee of Sponsoring Organizations (COSO) of The Treadway Commission.

Whistleblowing System Management Effectiveness Implementation and Improvement

The Board of Commissioners gives great attention to corporate risks, especially the risk of fraud that can occur in running the toll road and non-toll road businesses. Therefore, the Board of Commissioners emphasizes the need for an effective mechanism to prevent the possibility of fraud in the internal control framework, which could consist of a control environment; controlling activities; risk assessment; information and communication; and monitoring.

In addition, the Directors continues to be encouraged to cultivate compliance towards a mutually agreed code of conduct, improving the effectiveness of detection procedure, investigating violations on compliance, and mechanism of communication on violation within the Company.

The Directors are also encouraged to keep maintaining the effectiveness of the whistleblowing system (WBS) which is managed by an independent and reputable third party and the Board of Commissioners has provided inputs to strengthen the existing whistleblowing system (WBS) and the Board of Commissioners and the Directors have issued a joint resolution to revitalize Jasa Marga WBS.

In the view of the Board of Commissioners, the implementation of the WBS at Jasa Marga has been going well, however, some things still need to be improved.

Information Technology Governance

The Company realizes the need to implement Information Technology Governance (IT Governance) into the Company’s business processes. Referring to the Decision of the Directors No. 45/KPTS/2018, the standing of Information Technology in the Company has undergone a transformation not only as a support in achieving efficiency and effectiveness of business process, but also as an innovation to maintain business sustainability and increase the Company’s income.

Based on measurement of 2018 IT Governance Maturity Level by external parties (consultants), Jasa Marga has reached a value of 3.23 which shows an increase compared to 2017 with a value of 3.21.

Corporate Social Responsibility

Corporate social responsibility is one form of good corporate governance implementation. The implementation of corporate social responsibility has been carried out holistically, integrated with the Company’s business processes.

In implementing social responsibility, the Company is viewed to have implemented the concept of sustainable development and its activities on stakeholders. The Board of Commissioners always ensures that the Company’s decisions and activities have a positive impact on the environment and society, the fulfillment of the rights of employees, toll road users and suppliers.

This can be seen from the high level of employee engagement, toll road user satisfaction and supplier satisfaction.

Appointment and Determination of Public Accounting Firm (KAP) for Company Financial Statements Audit of 2018 Fiscal Year

Based on a letter of the Public Accounting Firm Service Procurement Committee of PT Jasa Marga (Persero) Tbk. for the 2018 Fiscal Year and the decision of the Board of Commissioners meeting, the winner was decided tobe KAP Satrio Bing Eny & Partners (Member of Deloitte Touche Tohmatsu Limited) to audit the Company’s consolidated financial statements and Implementation Financial Statements of Corporate Partnership & Community Development Program (PKBL) for 2018 Fiscal Year. Furthermore, in accordance with the provisions of Article 15 paragraph (2) b letter b. 5. and Article 21 paragraph (2) c. The Directors have scheduled the Articles of Association of the Company at the Annual GMS of the 2017 Fiscal Year which was held on April 10, 2018.

The GMS approved the proposed KAP and decided that the Board of Commissioners is given authority and power by first obtaining written approval from the Series A Dwiwarna Shareholder to determine the replacement KAP in the event that a designated KAP cannot complete its scope of work due to any reason. In connection with the sanctions against KAP of Satrio Bing Eny & Partners (Deloitte) from OJK which can have an influence on the Company’s image, then through a special meeting of the Board of Commissioners on October 15, 2018, after receiving an explanation from the Directors, it was decided to cancel the contract of KAP of Satrio Bing Eny Associate (Deloitte) to audit the company’s financial statements in 2018, while requesting the Directors to immediately settle all obligations arising from the termination of the contract Then, based on the Audit Committee recommendation, the Board of Commissioners appointed KAP of Purwantono, Sungkoro & Surja (Ernst & Young Global Limited Member Firm) a replacement KAP.

The appointment of the replacement KAP has gone through the process of procurement of goods and services that are valid in the Company and based on the recommendations of the Audit Committee.

The Board of Commissioners submits a letter to the Minister of SOE as the Series A Dwiwarna Shareholder and has obtained written approval for the establishment of KAP of Purwanto, Sungkoro & Surja as a replacement KAP for the general audit of Consolidated Financial Statements and Financial Statements of the Company’s PKBL Program Implementation for 2018 Fiscal Year.

Appointment and Determination of KAP for Company Financial Statements Audit of 2019 Fiscal Year

Based on the resolution of the Board of Commissioners’ meeting, the determination of KAP for the audit of 2019 fiscal year will be conducted through an auction, in which the process starts at the end of 2018. Through Board of Commissioners Decree, a Procurement Committee for Public Accountant Services has been formed to Audit the Company’s consolidated Financial Statements and the Financial Report for the Implementation of the Partnership and Community Development Program (PKBL) for 2019 Fiscal Year. Determination of the winner of the auction has been scheduled and the determination of KAP for the financial report audit for fiscal year 2019 will be proposed as one of the agenda for the Annual GMS for the 2018 Fiscal Year.

Assessment on the Performance of Committees Under the Board of Commissioners

The Board of Commissioners has supporting organs which include the Audit Committee and Nomination, Remuneration and Risk Committee; and the Secretariat of Board of Commissioners. The Board of Commissioners periodically evaluates their performance based onannually or defined key performance indicators.

The results of the Audit Committee’s KPI achievements in 2018 have exceeded the target. From the target of 5.00, the Audit Committee succeeded in achieving a total value of 5.46.

The KPI of Nomination, Remuneration and Risk Committee succeeded in achieving a total score of 85 of the target of 100.

Changes in the Composition of the Board of Commissioners

In the 2018 period, the number and composition of the Board of Commissioners of the Company underwent several changes as explained below:

Number and Composition of the Board of Commissioners of the Company Before the Annual GMS Dated April 10th, 2018

The number and composition of the members of the Board of Commissioners of the Company before the Annual GMS dated April 10, 2018, were 6 (six) people consisting of 1 (one) President Commissioner/Independent Commissioner, 4 (four) Commissioners and 1 (one) Independent Commissioner. All members of the Board of Commissioners are domiciled in the work area of the Jasa Marga Head Office.

Refly Harun : President Commissioner/Independent Commissioner
Sigit Widyawan : Independent Commissioner
Boediarso Teguh Widodo : Commissioner
Sugihardjo : Commissioner
Muhammad Sapta Murti : Commissioner
Agus Suharyono : Commissioner

Number and Composition of the Board of Commissioners of the Company After the Annual GMS Dated April 10, 2018

The number and composition of the members of the Board of Commissioners of the Company after the Annual GMS dated April 10, 2018, were 6 (six) people consisting of 1 (one) President Commissioner/Independent Commissioner, 4 (four) Commissioners and 1 (one) Independent Commissioner. All members of the Board of Commissioners are domiciled in the work area of the Jasa Marga Head Office.

Refly Harun : President Commissioner/Independent Commissioner
Boediarso Teguh Widodo : Independent Commissioner
Sugihardjo : Commissioner
Muhammad Sapta Murti : Commissioner
Agus Suharyono : Commissioner
Vincentius Sonny Loho : Commissioner

In connection with the changes in the composition of the Board of Commissioners, the Board of Commissioners has arranged and restructured the description of the duties and responsibilities of each member of the Board of Commissioners, and stipulated it in the Board of Commissioners Decree No. KEP-70a/V/2018 dated April 16, 2018 concerning Revision of the Assignment of Members of the Board of Commissioners of PT Jasa Marga (Persero) Tbk.

Number and Composition of the Board of Commissioners of the Company After the Extraordinary GMS dated September 5, 2018

The number and composition of the members of the Board of Commissioners of the Company after the Extraordinary GMS dated September 5, 2018 were 6 (six) people consisting of 1 (one) President Commissioner/Independent Commissioner, 4 (four) Commissioners and 1 (one) Independent Commissioner. All members of the Board of Commissioners are domiciled in the work area of the Jasa Marga Head Office.

Sapto Amal Damandari : President Commissioner/Independent Commissioner
Sugihardjo : Independent Commissioner
Muhammad Sapta Murti : Commissioner
Agus Suharyono : Commissioner
Anita Firmanti Eko Susetyowati : Commissioner
Vincentius Sonny Loho : Commissioner

This change was also followed by the issuance of Board of Commissioners Decree regarding the Assignment of Members of the Board of Commissioners No. KEP-139/ IX/2018 dated September 27, 2018.

The change in the composition of the members of the Board of Commissioners led to a change in the composition of the committees under the Board of Commissioners. Changes in the composition of the Company’s Audit Committee Members have been reported by the Company to the Financial Services Authority as a form of the Company’s compliance with applicable laws and regulations.Adanya perubahan susunan anggota Dewan Komisaris menyebabkan terjadinya perubahan susunan keanggotaan komite-komite di bawah Dewan Komisaris. Perubahan susunan Anggota Komite Audit Perseroan telah dilaporkan Perseroan kepada Otoritas Jasa Keuangan sebagai bentuk kepatuhan Perseroan teradap peraturan perundangan yang berlaku.

Closing

With the achievement of the Company’s excellent performance in 2018, the Board of Commissioners expresses its highest appreciation to the Directorsalong with all levels of the Company’s Management. The Board of Commissioners would like to offer a gratitude to the trust given by the shareholders. In the future, the Board of Commissioners will continue to provide the best in carrying out its duties and responsibilities in supervising and providing advice to the Directors, so that the Company always gets the best contribution for the Indonesian people.

Ending this report of the Board of Commissioners in 2018, we express our highest appreciation for the cooperation and support of all stakeholders that enable the Company to continue to grow and develop into a large and resilient Company in the toll road business, and to provide better services for all toll road users and in its work support the Government’s program to accelerate the provision of infrastructure and facilities in the transportation sector, especially toll roads, which are very much needed in supporting and strengthening the conditions and growth in the economic and financial sector.

Without good participation and cooperation from all shareholders, the public and toll road users and the Company’s partners in supervising and fostering Jasa Marga, it will be difficult for the Company to grow rapidly and provide benefits to all stakeholders and contribute to accelerating development infrastructure that is being implemented by the Government, especially toll roads.

The Board of Commissioners will enthusiastically continue to increase its commitment so that the Company is managed properly, transparently and modernly by prioritizing the implementation of the principles of good corporate governance.

The Board of Commissioners also offer a gratitude to the Directors and all levels of Jasa Marga officials and employees and subsequently invite them to work harder, more active and more diligent in the upcoming years in their respective fields of work.

We believe that God the Almighty gives His blessings and help to all of us. Amen.

Jakarta, April 2019

On Behalf of the Board of Commissioners

Sapto Amal Damandari

President Commissioner/ Independent Commissioner