PT PAL Indonesia's future

In this letter we wish to mention one more point in relation to the article published in The Jakarta Post on July 8, 2003, titled Shipyard PAL plans to go public.

The future status of PT PAL Indonesia will be determined by our shareholders, while the management's focus is to make PT PAL Indonesia the preferred strategic solutions provider for the maritime industry and general engineering, both at local and international levels. We wish to reach this goal by improving the quality of our products and services, implementing good corporate governance, reaching new markets and making PT PAL Indonesia a financially sound company.

Our commitment to consistent improvement and to the highest standards of quality will be maintained, regardless of the status of the company.

We believe this is an important statement that should be communicated to our stakeholders.

ADWIN H. SURYOHADIPROJO, President Director, PT PAL Indonesia, Surabaya