We aim to sustain our palm oil business, is our strong commitment to comply with the environmental principles. We understand that globally there has been a growing awareness over the importance of complying with the sustainable principles in order to conserve the environment.

DEAR SHAREHOLDERS, It has been an interesting and challenging journey along the year 2010. But it has been a rewarding one as well, as we managed to deliver stability and progress to our Company PT Astra Agro Lestari Tbk (the “Company”). During the year, we were able to maintain our efficiency and keep a tight focus on our strategic, operational, and financial goals set in line with our company’s vision and mission. As a result, the year 2010 was a year of further progress for the Company as can be seen through its financial report. We managed to book a total profit of Rp 2.02 trillion, an increase of 21.4% from Rp 1.66 trillion in the previous year. It was mainly derived from the increase of our total production of palm oil, and rising price of palm oil.

Our total production of crude palm oil (CPO) rose by 2.8% from 1,082.95 thousand tons in 2009 to 1,113.28 thousand tons last year. At the local market, the palm oil price averaged at Rp 7,027/kg, an increase of 12.6% from that in 2009. At the international market, the price in Rotterdam reached the average level of more than USD 901/ton, an increase of 31.9% from that in 2009. Overall, the encouraging growth was partly the result of our intensification program that we have been implementing since the last few years. Our aim with that is to increase both the quantity and quality of our fresh fruit bunches (FFB). Although most of our oil palm trees have reached their prime age, the intensification program had supported us to maintain our productivity. The intensification program, which is aimed to improve productivity on existing plantation areas, include more effective use of fertilizers, composting by using organic materials and wastes from our factories, water management system, soil treatment, and terracing system on hilly areas, and better pollination system to improve yield and quality of FFB. The intensification program is part of our strategic directions that we have set to continue developing the Company as the main and most efficient producer of palm oil in the country. Other strategic directions are to strengthen the R&D role with a view to produce high quality palm seeds and improving plantation quality, to implement the long term replanting program as a way to maintain production volume, to expand plantation areas, and to further develop our logistic infrastructure to maintain competitiveness. Although the recent development on environmental front, to have compliance  to more stringent sustainability standards, will significantly hampered our potential expansion of new planting, but to some extent, we will still pursue expansion through acquisitions, and development of new plantation areas in a manner that we see them in line with those more stringent sustainability standards. Currently, total oil palm plantation areas which manage by us have amounted to 263,281 hectares at the end of 2010. 2011 PLAN AND STRATEGY Despite of progress that we have made so far, we will not be just complacent. We are more driven by what the Company should achieve in the future and how we can lead our way to realize it. We have set our target of what the Company should be after this year. And we have designed our plan and strategy this year to realize it. We will make sure that no stone will be left unturned in our efforts to deliver the target, while anywhere possible along the year we keep seeking new opportunities for further quality growth. We will also continue to be strongly committed to maintaining a strong balance sheet, which we believe is particularly important for a cyclical commodity company like our own. We see that all measures and progress achieved last year have developed into a stronger foundation for us to continue pursuing our efforts to realize our new targets this year. We will keep implementing all of the strategic directions, which had been implemented since the last few years. The most important among them are to continue implementing the intensification program and improve the infrastructures and other supportive facilities to maintain our company as one of the main and most efficient producer of palm oil in the country. As the research and development (R&D) is the key to the intensification program, we will invest much more on developing it. We are optimistic that our R&D will be able to produce our own superior palm seeds in the future and provide technical solutions to further improve our plantation quality. CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY From the very beginning of our business operations we have been always concerned with the welfare of all stakeholders, particularly those living around our oil palm plantation areas across Indonesia. We are strongly committed to improve their quality of life through a number of programs under our corporate social responsibility (CSR) programs. Across all of our plantation areas, we have provided them public facilities for   education, health, and houses of worships. Many of their children have also got scholarships under our education programs. Even we organize a number of courses, not only on how to do oil palm business but also for non oil palm business and cooperatives, in order to socially and economically empower them. We have also organized other empowerment programs through business cooperation with our company. The empowerment programs include subcontracting of several jobs to the local people, such as transporting the fresh fruit bunches from the plantation areas to factories, land clearing, and planting jobs. Also we provide financial assistances for people interested in developing their own small businesses through our Income Generating Activities (IGA) programs. Another part of our CSR, which we aim to sustain our palm oil business, is our strong commitment to comply with the environmental principles. We understand that globally there has been a growing awareness over the importance of complying with the sustainable principles in order to conserve the environment. Through our campaigns, education programs, and environmental courses and trainings we will continue to persuade the general public, particularly those living around our plantations, to be more aware on the importance of preserving the environment. The environmental trainings include forest fire extinguish trainings that we have been organizing regularly. GOOD CORPORATE GOVERNANCE As a publicly listed company in the Indonesian Stock Exchange (IDX), we are committed to practicing the principles of the Good Corporate Governance (GCG). Parts of the commitment will be to make sure that all of our financial reports and other reports required as a public company be made accurately and publicized on time. Also we are required to regularly organize public exposes, and regular meetings with journalists to inform them on our company’s performance based on the prevailing regulations. Finally, on behalf of the Board of Directors, we would like to thanks all of our stakeholders, business partners, our Board of Commissioners who patiently guided us, the Audit Committee, and also to extend our special gratitude and appreciation to all of our employees across Indonesia for their continued dedication and good performance during last year. Our success will be impossible to achieve without people like all of them. Thank you.