PT PAL Indonesia's future

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