Plaza Indonesia Realty Tbk.

Dear Valued Shareholders

In expressing our thanks for the grace of God Almighty, we wish to report to shareholders on the management of the Company in 2009.

Although economic activities have yet to recover as a result of the global economic crisis, the Company was able to return to profit in 2009. This was due to the Company’s Board of Directors and management team implementing appropriate efficiency programs and business strategies in facing heightened competition in the shopping center and hotel sectors.

The success of the Board of Directors and management team in completing the construction and fit-out of Plaza Indonesia Extension and The Plaza according to plan, as well as in meeting marketing goals, reinforced Plaza Indonesia’s leading position as the owner and developer of prime real estate in Jakarta. Similarly, the renovation and continual improvement of services for Grand Hyatt Jakarta succeeded in maintaining the position of this five-star diamond hotel as the best in its class in terms of both facilities and services.

In addition, the action of the Board of Directors in acquiring fX Lifestyle X’enter increased the Company’s market segment and also enhanced the Company’s business synergy in its fashion, lifestyle and entertainment enterprises.

In implementing Good Corporate Governance measures, the Board of Commissioners notes several continuing efforts of the Company. These include improvements in the implementation of the Company’s Operational Standards, as well as the functions of the Internal Audit and Audit Committee. As an extension of the Board of Commissioners, the Audit Committee was active in providing its opinions to the Board of Commissioners on reports or other matters brought before the Board of Directors, identifying matters requiring the attention of the Board of Commissioners and carrying out other tasks, such as examining financial information, the Company’s compliance with laws and regulations governing the Capital Market and also Internal Audit activities. The Audit Committee also reported to the Board of Commissioners regarding potential risks faced by the Company, as well the requirement that all members of management and employees provide a signed statement agreeing to abide by the Company’s business ethics.

We also are very proud of the Corporate Social Responsibility activities conducted by the Company. In addition to education and social outreach to communities in the immediate vicinity of the Company, the management continues to participate in the education sector through the founding of a kindergarten development for children from low-income families.

The Board of Commissioners wishes to take this opportunity to convey its deepest thanks and appreciation to its shareholders, business partners, customers, the Board of Directors, management team and the Company’s employees in their support and contribution to the success of the Company in 2009.

May God Almighty always provide guidance to us in order for the Company to achieve greater prestige in the future.