Dear Shareholder,

In 2003, Antam reached significant milestones in terms of its efforts to grow and improve. Construction on the FeNi III project finally started after a long delay due to financing difficulties, caused mainly by the non-conducive investment climate of the Indonesian economy. To revitalize the company, during its annual general shareholders’ meeting, shareholders elected four new Directors and one new Commissioner. This is expected to solidify the company’s fundamentals in its efforts to enhance shareholder value. We can assure you that the Commissioners and Directors are committed to this.

In the spirit of maximizing shareholders’ value and to augment the corporate governance practices within Antam, in September 2003, the Commissioners decided to form four new committees alongside the previously established Audit Committee. The new committees are the Good Corporate Governance Committee, Risk Management Committee, Nomination, Remuneration and Human Resources Committee and the Mine Closure Committee. The Commissioners believe the establishment of these committees will enhance the job of overseeing the company’s operations. We also hope the committees will augment the good relationship between the two boards. Cost management will be very crucial in
the years ahead.

In 2003, Antam redefined its vision, to be a mining company of international standards with a competitive advantage in the global market. Performance indicators that we believe are attainable in 2010, accompany this vision. These include annual revenue of USD500 million, 4% of the global market share for ferronickel, and being a low cost producer of Antam’s main commodities of nickel and gold. Despite such optimism, we advise management to take a closer look into the risks the company faces in attaining the company’s vision.

From left to right: Ir. Supriatna Suhala, MSc, Commissioner Yap Tjay Soen, MBA, Independent Commissioner Dr. Hikman Manaf, Commissioner Ir. Suryo Suryantoro, MSc., Commissioner Prof. Dr. Ir. Firman M.U. Tamboen, M.Eng, President Commissioner

Corporate development is one measure taken to increase value. In 2003, management started construction of the long awaited FeNi III project. To fund the USD320 million project, management took an opportunity provided by the Indonesian bond market to issue, through Antam’s Mauritius subsidiary, a USD200 million Eurobond. The company will also use a USD60 million investment credit facility provided by a local bank and internal cash of USD60 million. Despite our belief that management took prudent steps to decide upon the optimal financing scheme, we would like to remind the management and the employees to carefully monitor any development that might disturb the construction process. In this regard, we wish that any inputs or concerns of the Commissioners are given serious consideration and addressed swiftly.

PT ANTAM Tbk
Gedung Aneka Tambang Jl. Letjen T.B. Simatupang No. 1
Lingkar Selatan, Tanjung Barat Jakarta 12530 - Indonesia
Phone : (62 - 21) 789-1234, (62 - 21) 781-2635, Fax : (62 - 21) 789-1224
email: corsec@antam.com - www.antam.com