Message From Chairman

Dear Shareholders,


Staying Resilient

Another year passed and 2016 has proven to be an extraordinary year, not only for the world but also for Saratoga. I feel fortunate to be surrounded by the best of Saratoga and take pride in knowing that the team always works tirelessly for the best interest of our shareholders and tries their best to deliver Saratoga’s value and visions. 2016 truly was a significant year with unprecedented political events such as Brexit referendum, US presidential election, refugee crisis in Europe, just to name a few. The portfolio of Saratoga was not immune to the volatility brought by the global financial markets. However, the team stayed focused and endured challenges with great perseverance. In Saratoga we believe in hard work. The harder one works the luckier one becomes. As the founder of Saratoga I am truly proud of what Saratoga has become today.


Coming Full Cycle

The net asset value of our investment portfolio has increased by 44%, from IDR13.6 trillion in 2015 to IDR19.5 trillion in 2016. What is more important, however, is that we have come full cycle in our journey as an active investment company. Since the inception of the firm, we have always been following the same investment principle of “Invest-Grow-Monetize”, which has been applied to each opportunity we have identified and invested in. During 2016 we have completed a full cycle of all of the three components. We entered two promising ventures in the high-growth potential consumer sector, restructured and transformed businesses from loss to profitability, divested from companies and assets with attractive returns and for the first time distributed dividends to our shareholders.


Active but prudent investing

Let me reiterate our philosophy as a prudent and long-term investor. From the origin s of Saratoga we have established two imperatives, firstly, to be thorough in knowing our shareholder partners and their ability. And secondly to exercise the discipline and rigors of best-practice management that is critical for the growth in any business venture. Saratoga closed the year with a diversified investment portfolio comprising of 23 companies, 11 of them listed. Our diversity and depth provides shareholders with a unique portfolio proposition: to participate in the significant growth potential of Indonesia across natural resources, infrastructure and consumer sectors over the long term. Of equal importance, we provide opportunities via our investment network, to gain access to private companies in early stage and highly prospective businesses, where substantial value has yet to be realized.


Corporate Governance

The management of Saratoga aims to govern the company in a proper and prudent fashion. We are cautious and take careful measures in achieving our financial targets to build sustainable long-term success. During the year the Board of Commissioners met on 6 occasions and jointly 4 times with the Board of Directors to examine and review the Saratoga’s performance, of which we are satisfied with the way Management has led and managed the Company. The Board of Commissioners also reviewed the work of the Audit Committee and Nomination and Remuneration Committee. A full account of the work of the governance committees is included in this report. There were no changes to the composition of the Board of Directors, nor of the Board of Commissioners, in 2016. We are grateful for winning the Best Equitable Treatment of Shareholders Award from the Indonesian Institute for Corporate Directorship for the second time. We are committed to the continuous enhancement of the principles in our daily operations.


People Makes All the Difference

One of our highest priorities as an active investor is placed in people – within Saratoga, our investee companies and the communities in which we operate. We continue to invest considerably in capacity building and the development of leadership and skills across the group. And I am delighted to note the level and range of responsible community, social and environmental activities undertaken by Saratoga Group over the years.


Looking Ahead

We remain optimistic about the future economic growth of Indonesia and we are excited to continue to take an active role in it. Our confidence is based on Indonesia’s natural strengths in the resources and consumer base, as well as in the number of population that is sure to generate investment demands in public utilities – be they transportation, telecommunications or energy. Quite apart from most economies in the region, Indonesia offers attractive investment opportunities with its low private sector debt, easing credit conditions and massive domestic consumer markets. Let Saratoga be your investment partner in remarkable and bountiful Indonesia. On behalf of the Board of Commissioners, I would like to extend our thanks to the Board of Directors and convey our appreciation for the efforts made by the many who work diligently within our investee companies, to our own team at Saratoga for their hard work during a challenging year and to our shareholders and other stakeholders. We look forward to continuing journey in the years to come.


For and on behalf of the Board of Commissioners,


Edwin Soeryadjaya,

President Commissioner