Dear Shareholders,
On behalf of the Board of Commissioners, I would like to extend our highest appreciation to the Company’s Board of Directors, management and all employees for their extraordinary achievement throughout the year. The year 2007 is marked as a year of continuing growth and stability for Indonesia. Inflation was maintained to single digit levels at around 6.59%, and the interest rate was lowered to 8.00%. The currency has maintained a relatively stable range between Rp9,000-Rp9,500, whilst foreign exchange reserves amount to more than US$57 billion and economic growth has maintained a moderate, but healthy 6.50%. The macro-economic environment was complemented this year by an equally stable political and social order, and on a more micro-scale, the capital markets have roared with a 50%, oneyear increase in the Jakarta Composite Index.

For United Tractors, the year 2007 was manifested in extraordinary achievements. The Company’s consolidated sales increased significantly by 32% to an amount of Rp18.2 trillion, accompanied by net profit of Rp1.5 trillion, a 60% increase from last year. In addition, earnings per share rose to Rp524 from Rp326 per share a year earlier. This outstanding year was marked by setting the all-time sales record for Komatsu heavy equipment of 3,454 units, far beyond the previous record achieved two years ago in 2005 of 2,406 units. This performance enhancement had been spurred-on by continual domestic expansion of mining, agribusiness, forestry and construction sectors.

The Company’s mining contracting side of the business also managed its growth by recording coal production increase of 28%. In addition, the newly operated coal mining business also showed a satisfying progress in revenue contribution to the Company. Overall, we as the Board of Commissioners conclude that the management has succeeded in maintaining the Company’s leadership in its industry.

Correspondingly, the management also continued to show further involvement in current issues of environment, health and safety, through the implementation of Astra Green Company and Astra Friendly Company programs, as part of the Company’s social responsibility initiatives. It is equally imperative that the management efforts are allocated to good corporate governance practices along with effective human resource development schemes. Comprehensive training programs encompassing technical, behavioral, managerial and leadership skills had been carried out, aimed at promoting talented and quality both individuals and teams to face the challenges ahead.

The Board of Commissioners saw the 2007 achievement as an evidence of the management’s ability to grow the Company’s programs in the future. In continuing the foundations laid by the previous management, the new management in 2007 has shown an excellent expertise in navigating and responding to both external and internal environments. We strongly feel that the management has all the right resources to seize the momentum in the present economic sector boom. We also have faith that mining, especially coal, and agribusiness, will continue to drive growth in the coming years. In addition, the forestry and construction sector will also gain growing momentum in the not too distant future.

I would like to extend my gratitude to Mr. Adam Philip Charles Keswick and Mr. Gunawan Geniusaharja, who resigned from their posts as Vice President Commissioner and Commissioner, for their invaluable contribution to the Company during their tenures. I would also like to welcome Mr. Benjamin William Keswick, Mr. Simon John Mawson, Mr. Hagianto Kumala and Mr. Anugerah Pekerti as the new members of the Board of Commissioners.

On behalf of the Board, I would also express my appreciation to the members of Audit Committee for assisting the Board in carrying out the supervisory functions throughout the year, and my sincerest thanks to the shareholders, customers, business partners and employees of the Company for their continuing support.

With the strong collaboration from all stakeholders, we are confident that the Company will succeed in maintaining high performance level, and continue to elevate it higher in this exciting future of opportunities and challenges.

Prijono Sugiarto
President Commissioner