IMPLEMENTATION OF CABOTAGE PRINCIPLE POLICY BY THE INDONESIAN GOVERNMENT AIMS TO TRANSFORM INDONESIA INTO A "GLOBAL MARITIME AXIS", RESULTING IN POSITIVE IMPACTS ON THE POTENTIAL AND OPPORTUNITIES FOR THE DEVELOPMENT OF THE MARITIME INDUSTRY IN INDONESIA.

2014 was the year when the Company obtained some of the key achievements in the course of its business.
Through the initial public offering (IPO), the Company has managed to change its status to a public company.
On December 3rd, 2014, the Company listed its shares on the Indonesia Stock Exchange. The IPO provided opportunities and enhanced the Company's ability to find alternative sources of external funding to support the implementation of the Company's expansion strategy.

The implementation of the cabotage principle and policy by the Indonesian government aims to transform Indonesia into a "global maritime axis" have a positive impact on the potential and opportunities for the development of the maritime industry in Indonesia. The increase of national oil production indicated by the production of blocks of oil and gas such as Natuna block, Madura block (gas and condensate), LNG Tangguh train 3, including Exxon Mobile for the Cepu block as well as the construction of new refineries also give a positive impact to domestic sea transportation industry. The production of oil and gas blocks as well as the construction of new refineries will increase the need for domestic shipping transportation. In addition, the decline in world oil prices on the other hand enhances the demand for oil transportation.

As a consequence to the Instruction of President ofRepublic of IndonesiaNo. 5 /2005, the development of the Indonesian shipping industry increases significantly. Along with the implementation of the cabotage principle, the increase number of Indonesian-flagged vessels occurred from 6,000 units to 20,000 units (Ministry of Transportation).

It resulted in an increase in the shipyard needs for the construction of new vessels anda surge in demand for repair and docking ship. The government's plan programs in kapal perintis of Rp 7 trillion, the construction of 30 patroli vessels for the Maritime Security Agency of the Republic of Indonesia and Pertamina long-term contracts in the construction of new vessels provide great opportunities for the development of the shipyard companies in Indonesia. Seeing the opportunity on the needs of transporting oil and gas, by the end of 2014 the Company purchased 2 (two) Aframax oil tanker. As a newcomer in the shipyard business, the Company has made significant achievements. Since the end of 2013, the Company was able to accept the construction of a new ship to medium-tankers capacity that was equal to 17,500 DWT. Currently the Company has obtained five (5) new ship-building contracts.

I would like to thank and appreciate the Shareholders, the Board of Commissioners and all Stakeholders for your attention, commitment, cooperation and support that have been given to the Company, so that we can achieve our vision.

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