Despite a challenging condition faced by the Company in the first semester last year, both in production as well as palm oil price, at the second semester the Company has been able to perform well achieving satisfactory performance during the year.

DEAR SHAREHOLDERS, I am very pleased to report to you that the Board of Commissioners have evaluated and appreciates the performance of the Board of Directors of PT Astra Agro Lestari Tbk (the “Company”) in managing the Company during the year 2010. The Company recorded another good year last year, adding a new height of success to maintain its long and outstanding journey as one of the leading producer of palm oil in Indonesia. Despite a challenging condition faced by the Company in the first semester last year, both in production as well as palm oil price, at the second semester the Company has been able to perform well achieving satisfactory performance during the year.

During the reported year, the palm oil incremental demand showed a very positive development especially in the second semester surpassing the incremental supply which drives the palm oil price into its new height. This development has driven the average palm oil price into more than USD 901/ton, an increase of 31.9% compared to the average palm oil price  in previous year. Taking serious consideration over the rosy prediction of palm oil business, I strongly believe that the Company will continue to perform well in the years ahead. Globally, the incremental demand for vegetable oils has steadily climbing. This will further push up the demand for palm oil as no other vegetable oils can meet the rising demand more efficiently. As seen during the last decade, the share of palm oil in the global vegetable oils market has significantly increased and outperformed other type of vegetable oils, including its main substitute feed stock, the soybean, and now become the top one having the largest share of the market due to its efficiency and versatility. Oil palm efficiency of land use and productivity has no rival compared to other type of vegetable oils feed stock which put it as the cheapest and sustainable feed stock of vegetable oil. The versatility of palm oil is also expanding. Previously, it is only known as the source of food, particularly cooking oil. But later, it has been used as the source of raw materials to produce bio-diesel. THE COMPANY’S PERFORMANCE During the reported year, the Company has delivered a consolidated profit amounted to Rp 2.02 trillion, an increase of 21.4% from Rp 1.66 trillion recorded in 2009. Net Income per share went along in line with the increase of profit into Rp 1,281 per share compared to Rp 1,055 per share recorded in the year 2009. The increase of profit recorded by the Company mainly driven by the increase of consolidated revenue into Rp 8.84 trillion in 2010 from Rp 7.42 trillion recorded in previous year. Aside from the increase of palm oil price, the Company has been able to achieve the recorded revenue due to the increase of its production of palm oil into 1,113.28 thousand tons from previous year production of 1,082.95 thousand tons. Last year, the Board of Commissioners and Board of Directors have been regularly evaluating the strategic and operational plan of the Company, covering the establishment of various targets of the Company intensification program, long term replanting program, new planting program, and R&D activities. The Company has also defined a series of activity to ensure that all targets being accomplished. Considering the recent development in the environmental and sustainability front which was significantly hampered the potential expansion of the Company’s hectarage due to its more stringent requirement for new planting program, the Company has decided to focus more into the improvement steps to maintain the productivity in its existing plantation areas. That way can result in higher quantity and quality sustainably in the Company’s existing plantation area through, among others, planting superior seeds in the Company’s long term replanting program, better soil fertilization, water management system, better pollination system, and improvement of its infrastructure. SUPERVISION AND ASSESSMENT ON MANAGEMENT PERFORMANCE In reference to the mandate set out in the Company’s Article of Association, the Board of Commissioners have routinely conducted our supervisory function to the management carried out by the Board of Directors as well as providing necessary recommendation to ensure the accomplishment of the Company’s targets. In rendering this duties, the Board of Commissioners always conduct close coordination with the Board of Directors and the Audit Committee of the Company. This close coordination, supervisory conduct and recommendation has enabled the Company to achieve its satisfactory performance. The Board of Commissioners fully appreciates the endeavors and outcomes of the Board of Directors in realizing all of the Company’s targets as had been set in the Company’s strategic and operational policies as well as carrying out the recommendations and directives from the Board of Commissioners. ENVIRONMENTAL PRESERVATION AND CORPORATE SOCIAL RESPONSIBILITIES The Board of Commissioners has entrusted the Board of Directors to always put the highest priority in environmental preservation and occupational safety along with the Company’s operational activities. The Board of Commissioners continuously monitoring the progress of Astra Green Company and Astra Friendly Company carried out by the Board of Directors in all plantation areas, and indeed providing advices and opinions concerning its implementation. On top of that, the Board of Commissioners also fully support and provide guidance to the Board of Directors to implement the corporate social responsibility program, particularly for those communities living in the surrounding of the Company’s plantation areas. The Company’s CSR program is not only focus in providing educational and health facilities but also support the community’s economic development activities to improve the welfare of the local communities in line with our corporate aim to prosper with the nation. CLOSING We would like to take this opportunity to thank all members of the Company’s Audit Committee for their good performance in their auditing jobs during last year. Along last year, we from the Board of Commissioners, have routinely met with the Audit Committee to evaluate the Company’s financial performance and discussed any problems concerned with its financial condition. Finally, on behalf of the Board of Commissioners, we would like to extend my heartfelt thanks to Board of Directors for their good performance in 2010, and for our shareholders and all stakeholders for continued support and trust in the Company. We would also like to extend such special heartfelt thanks to all management and staff for their continued dedication, and their hard and smart works during last year. We kindly admit that it is because of them that the Company has managed to perform well over the past years, and it will be because of them that we and the Company will continue to prosper in the future. May the God Almighty help us all in our endeavor.