The contraction of the U.S. economy as a result of the events of September 11th significantly impacted the growth and performance of financial markets worldwide. Global economic activity was further dampened by several high profile corporate scandals and bankruptcies in the United States that served to heighten investor diffidence resulting in stagnant international capital markets.

Continued domestic market activity can be attributed to the monetary and fiscal policies introduced by the government, which from an operational standpoint, pumped liquidity into the market through continuous progress in bank and overseas debt restructuring efforts. Credit and payment facilities also remained available contributing to growth in a number of sectors. However, a slower than anticipated rebound in consumer confidence and business spending coupled with poor stock market performance a as result of the Bali bombing effected only marginal growth in 2002 despite positive market sentiment at the beginning of the year. Growth within the report period hovered between three to four percent, driven primarily by fiscal improvements in the final quarter of 2002. Poor regional and international performance severely impacted domestic financial institutions which suffered increased credit losses, lost trading and asset management revenue, depressed sales of life and savings products, fewer investment banking transactions, and the evaporation of capital gains opportunities from both fixed-income and equity portfolios.

In retrospect, 2002 was a year of learning for Limas Stokhomindo. As our first year as a publicly listed company, the scandalous corporate bankruptcies in the United States raised the level of awareness of our public obligations and commitments as an issuer. The events of 2002 served to highlight the moral obligation of each issuer to readily allow public access to information, in order to ensure that investors and the public alike are aware of and understand the risks associated with each transaction executed, each decision made, and each corporate action implemented. PT. Limas Centric Indonesia Tbk. has acknowledged the importance of its obligation; and has responded by intensifying its efforts to apply the principles of good corporate governance across all operational levels and to promote public transparency through its products.

2002 is the year that we dedicate our productivity to the public by acknowledging their need through our products. We have and will continue to increase transparency and deliver accurate information to the public. It’s our mission and business objective to do so.

We dedicate our productivity in 2002 to the public and going forward commit ourselves

to increased transparency - this too is our mission.

Sallie L. Bachtiar
PRESIDENT COMMISSIONER