Berlian Laju Tanker Tbk PT

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Shipping/sea transportation business, specializing in liquid cargo transportation.

Our valued shareholders and business partners, In general the year of 2002 is not a year conducive for global economy as well as general business growth. Since the economy slowdown started in second semester of 2001 the business climate has been worsened by numerous incidents such as WTC tragedy followed by war in Afghanistan, Bali bombing in late 2002, and the recent build up tension in the Middle East as the result of conflict between the United States and Iraq. The world political instability and the state of insecurity have developed into some unfavorable impacts to Company’s business, primarily in the form of increase of bunker cost and war risk insurance coverage. Apart from the tension in Middle East, crude oil prices are also affected by the political crisis in Venezuela which in turn has caused the bunker price to increase. To cope with the situation the Company beside continuously promotes cost saving has also been trying to get more fixed contracts and to intensify the fleet activities in the region which is still less affected by the economy slowdown. According to the Asian Development Bank’s report the region in which the Company has its most business activities is still relatively less affected by the global economy slowdown. We still see growth in a number of Asian countries’ economies and that builds confidence for us that there are still opportunities for the Company to further develop its business. In 2002 the company’s activities in liquid cargo transportation has shown improvement. We see a 800,000 metric ton increase in total volume transported or a 8.3% increase compared to the year before. The increase also shows the consistent pattern of cargo volume development from 1.6 million metric ton in 1995 to 10.3 metric ton in year 2002. In addition the Company has also succeeded in securing its revenue by obtaining more transportation contracts. Total chemical cargo transportation in 2002 is around 5.2 million metric ton, 3.9 million ton or 74.5% of it is derived from contract of affreightment, which is an increase from 65.3% in 2001. In view of current business climate such contract is very advantageous in reducing business uncertainty. In financing sector we see that economy slowdown has in fact some positive effect to the Company in the form of interest rate drop. In early 2002 the Federal Reserve rate was 1.73% and by the end of the year the interest rate has dropped to a level of 1.24%. This in turn has reduced the loan interest rate and lessens the Company’s financial cost. The combination of Company’s effort and external factor as described above have generated positive outcome for the Company. Revenue has increased from IDR 880 billion to IDR 915 billion, but the Net Profit After Tax is recorded at IDR 106 billion or has slightly dropped from previous year’s IDR 113 billion. The decrease of Net Profit is attributed to the state of prolong low freight rate while some cost components have increased due to the external factors mentioned above. The Earning per Share however, has slightly increased. This is caused by the reduction of number of shares due to the share buy back program by the end 2001 up to early 2002. Financial structures has also improved as reflected in the current ratio which increased from 79% in 2001 to 154% by end of 2002, and the decrease of Debt-Equity ratio from 186% to 148%. Business prospect in the coming years also looks encouraging. Transportation in South East Asia already shows sign of improvement due to the completion of some petro-chemical plants and facilities in Singapore, Malaysia, and Thailand. The statistic of liquid chemicals transportation shows the highest growth of chemicals transportation, especially organics, is concentrated in South East Asia and Japan which is the Company’s dominant trading area. In addition we expect China, as one of the countries in our trading area, will be more open for importing chemicals products in the coming years due to WTO regulation. The bunker price escalation which has been a concern in the past already shows sign of weakening by end of March 2003, after the presence of coalition forces in Iraq. We expect that if the conflict will soon be resolved it will have positive impact to our cost component and to the smooth operation of our expansion in Middle East where it is expected that countries such as Iran, Qatar, and Saudi Arabia will experience significant transportation volume improvement in the years to come. In view of the future growth prospect the Company also has to develop its fleet respectively. In 2002 the Company had signed contracts for 6 unit of ship newbuilding with combined total tonnage of 60,400 DWT. The deliveries of these new ships is expected in the period starting end of 2003 up to beginning of 2005. We are also aware that the fleet growth must also be supported by competent human resources, both as on-shore staffs as well as the crews who sail with the vessels. Therefore the Company has always been maintaining its focus in the effort of improving the quality of its human resources which in turn will maintain and give better quality services to its customer. To close our remarks we would like to express our gratitude for the trust and support shown by our customers. We are also indebted to our shareholders for their trust and the Board of Commissioners for their invaluable support toward us in running the Company. We are grateful for the good and professional work shown by Public Accountant of Hans, Tuanakotta & Mustofa, Notary Public Office Amrul Partomuan, S.H., LL.M.; and Share Registered Office PT Sinartama Gunita. Last but not least we would like to extend our sincere and highest appreciation toward all employees and crews for their contribution, hard work, and dedication to the Company. The Board of Director

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