STRICTLY CONFIDENTIAL — DO NOT FORWARD

THIS OFFERING IS AVAILABLE ONLY (I) TO INVESTORS WHO ARE QIBs (AS DEFINED BELOW)UNDER RULE 144A OR (II) IN OFFSHORE TRANSACTIONS IN RELIANCE ON REGULATION S UNDERTHE SECURITIES ACT (AS DEFINED BELOW).

IMPORTANT: You must read the following disclaimer before continuing. The following disclaimer appliesto the offering memorandum attached to this e-mail. You are therefore advised to read this disclaimer carefullybefore reading, accessing or making any other use of the attached offering memorandum. In accessing the attachedoffering memorandum, you agree to be bound by the following terms and conditions including any modifications tothem from time to time, each time you receive any information from us as a result of such access.

Confirmation of Your Representation: You have accessed the attached document on the basis that you haveconfirmed your representation to Barclays Bank PLC and Deutsche Bank AG, Hong Kong Branch (together, the“Initial Purchasers”) that (i)(A) you are not resident in the United States and to the extent you purchase thesecurities described in the attached offering memorandum, you will be doing so pursuant to Regulation S under theU.S. Securities Act of 1933, as amended (the “Securities Act”) OR (B) you are acting on behalf of, or you are aqualified institutional buyer (“QIB”), as defined in Rule 144A under the Securities Act, AND (ii) that you consent todelivery of the attached offering memorandum and any amendments or supplements thereto by electronictransmission.

The attached document has been made available to you in electronic form. You are reminded that documentstransmitted via this medium may be altered or changed during the process of transmission and consequently none ofthe issuer of the securities, the guarantor, the Initial Purchasers or any person who controls any of them or any oftheir respective directors, employees, representatives or affiliates accepts any liability or responsibility whatsoever inrespect of any discrepancies between the document distributed to you in electronic format and the hard copy version.Either Initial Purchaser will provide a hard copy version to you upon request.

Restrictions: The attached document is being furnished in connection with an offering exempt fromregistration under the Securities Act solely for the purpose of enabling a prospective investor to consider thepurchase of the securities described herein. You are reminded that the information in the attached document is notcomplete and may be changed. If you have gained access to this transmission contrary to any of the restrictionsherein, you are not authorized and will not be able to purchase any of the securities described in the offeringmemorandum.

NOTHING IN THIS ELECTRONIC TRANSMISSION CONSTITUTES AN OFFER OF SECURITIES FORSALE IN ANY JURISDICTION WHERE IT IS UNLAWFUL TO DO SO. THE SECURITIES HAVE NOT BEENAND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT, OR THE SECURITIES LAWS OF ANYSTATE OF THE UNITED STATES OR OTHER JURISDICTION AND MAY NOT BE OFFERED OR SOLDWITHIN THE UNITED STATES EXCEPT PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTIONNOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ANYAPPLICABLE STATE OR LOCAL SECURITIES LAWS.

The securities described herein have not been offered or sold and will not be offered or sold in Indonesia or toany Indonesian nationals, corporations or residents, including by way of invitation, offering or advertisement, andthis offering memorandum and any other offering material relating to the securities described herein has not beendistributed, and will not be distributed, in Indonesia or to any Indonesian nationals, corporations or residents in amanner which would constitute a public offering in Indonesia under Law No. 8 of 1995 on Capital Market.

None of this e-mail, the offering memorandum or anything contained in it or them shall form the basis of or berelied upon in connection with any contract or commitment whatsoever. None of the Issuer of the securities, theguarantor, the Initial Purchasers nor any of their respective affiliates or any other person accepts any liabilitywhatsoever for any loss howsoever arising from any use of this email or the offering memorandum or their respectivecontents or otherwise arising in connection therewith.

Except with respect to eligible investors in jurisdictions where such offer is permitted by law, nothing in thiselectronic transmission constitutes an offer or an invitation by or on behalf of either the issuer of the securities, theguarantor or the Initial Purchasers to subscribe for or purchase any of the securities described therein and access hasbeen limited so that it shall not constitute a “general advertisement” or “solicitation” (as those terms are used inRegulation D under the Securities Act) or “directed selling efforts” (within the meaning of Regulation S under theSecurities Act) in the United States or elsewhere. If a jurisdiction requires that the offering be made by a licensedbroker or dealer and the Initial Purchasers or any affiliate of the Initial Purchasers is a licensed broker or dealer inthat jurisdiction, the offering shall be deemed to be made by the Initial Purchasers or their affiliates on behalf of theissuer in such jurisdiction.

You are reminded that you have accessed the attached offering memorandum on the basis that you are a personinto whose possession this offering memorandum may be lawfully delivered in accordance with the laws of thejurisdiction in which you are located and you may not nor are you authorized to deliver this document, electronicallyor otherwise, to any other person. If you have gained access to this transmission contrary to the foregoingrestrictions, you will be unable to purchase any of the securities described therein.

Actions That You May Not Take: You should not reply by e-mail to this announcement, and you may notpurchase any securities by doing so. Any reply e-mail communications, including those you generate by using the“Reply” function on your e-mail software, will be ignored or rejected.

YOU ARE NOT AUTHORIZED TO AND YOU MAY NOT FORWARD OR DELIVER THE ATTACHEDOFFERING MEMORANDUM, ELECTRONICALLY OR OTHERWISE, TO ANY OTHER PERSON ORREPRODUCE SUCH OFFERING MEMORANDUM IN ANY MANNER WHATSOEVER. ANY FORWARDING,DISTRIBUTION OR REPRODUCTION OF THIS DOCUMENT AND THE ATTACHED OFFERINGMEMORANDUM, IN WHOLE OR IN PART, IS UNAUTHORIZED. FAILURE TO COMPLY WITH THISDIRECTIVE MAY RESULT IN A VIOLATION OF THE SECURITIES ACT OR THE APPLICABLE LAWS OFOTHER JURISDICTIONS.

You are responsible for protecting against viruses and other items of a destructive nature. Your use of thise-mail is at your own risk, and it is your responsibility to take precautions to ensure that it is free from viruses andother items of a destructive nature.

OFFERING MEMORANDUM STRICTLY CONFIDENTIAL

Listrindo Capital B.V.(incorporated in The Netherlands with limited liability)

US$550,000,000 4.95% SENIOR NOTES DUE 2026Unconditionally and irrevocably guaranteed by PT Cikarang Listrindo Tbk

(incorporated with limited liability in the Republic of Indonesia)

Interest payable on March 14 and September 14

Listrindo Capital B.V. (the “Issuer”) will pay interest on the US$550,000,000 4.95% Senior Notes due 2026 (the “Notes”) on March14 and September 14 of each year, beginning March 14, 2017. The Notes will mature on September 14, 2026. At any time on or afterSeptember 14, 2021, the Issuer may redeem the Notes, in whole or in part, at the redemption prices specified under “Description of theNotes — Optional Redemption,” plus accrued and unpaid interest, if any, to the redemption date. At any time and from time to time prior toSeptember 14, 2021, the Issuer may at its option redeem the Notes, in whole or in part, at a redemption price equal to 100% of the principalamount of the Notes plus the Applicable Premium (as defined herein) as of, and accrued and unpaid interest, if any, to, the redemption date.At any time prior to September 14, 2020, the Issuer may redeem up to 35% of the principal amount of the Notes with the proceeds fromcertain equity offerings at a redemption price of 104.95% of the principal amount of the Notes, plus accrued and unpaid interest, if any, tothe redemption date.

The Issuer is a wholly-owned subsidiary of PT Cikarang Listrindo Tbk (the “Parent Guarantor” or “Cikarang Listrindo”). The Issuerplans to use a substantial portion of the net proceeds from this offering to redeem in full the outstanding aggregate principal amount of the2019 Notes (as defined herein) under the indenture governing the 2019 Notes and pay for related premium, fees and expenses. Anyremaining proceeds will be used by the Parent Guarantor for working capital. See “Use of Proceeds” and “The Issuer.”

No later than 30 days following a Change of Control Triggering Event, the Issuer or the Parent Guarantor will make an offer torepurchase all Notes then outstanding at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest, if any,to the date of repurchase. The Notes are subject to redemption in whole at 100 % of their principal amount, together with accrued andunpaid interest, if any, at the option of the Issuer at any time in the event of certain changes affecting taxes of The Netherlands or theRepublic of Indonesia (“Indonesia”) (or certain other jurisdictions). See “Description of the Notes—Redemption for Taxation Reasons.”Payments on the Notes will be made in U.S. dollars without deduction for or on account of taxes imposed or levied by Indonesia or TheNetherlands (and certain other jurisdictions) to the extent described under “Description of the Notes—Additional Amounts.” The ParentGuarantor will unconditionally and irrevocably guarantee (the “Parent Guarantee”) the due and punctual payment of all amounts at any timebecoming due and payable in respect of the Notes.

The Notes and the Parent Guarantee will be unsubordinated obligations of the Issuer and the Parent Guarantor, respectively, and willrank equally with their respective unsubordinated indebtedness and senior to their respective subordinated indebtedness.

For a more detailed description of the Notes, see “Description of the Notes” beginning on page 170.

Investing in the Notes involves risks. See “Risk Factors” beginning on page 20.

PRICE 100.0% PER NOTE

The Notes and the Parent Guarantee have not been and will not be registered under the United States Securities Act of 1933,as amended (the “Securities Act”), and may not be offered or sold within the United States except pursuant to an exemption from, orin a transaction not subject to, the registration requirements of the Securities Act. Accordingly, the Notes are being offered and sold(1) in the United States only to qualified institutional buyers in reliance on the exemption from the registration requirements of theSecurities Act provided by Rule 144A and (2) outside the United States in an offshore transaction in reliance on Regulation S underthe Securities Act. For a description of certain restrictions on resale or transfer of the Notes, see “Transfer Restrictions” beginningon page 246. This offering does not constitute a public offering in Indonesia under Law Number 8 of 1995 regarding Capital Market.The Notes may not be offered or sold in Indonesia or to Indonesian citizens, wherever they are domiciled, or to Indonesian residents,in a manner which constitutes a public offer under the laws and regulations of Indonesia.

The Notes are expected to be rated “BB” by S&P Global Ratings, a division of S&P Global Inc. (“S&P”) and “Ba2” byMoody’s Investor Service Inc. (“Moody’s”). A rating is not a recommendation to buy, sell or hold securities and may be subject torevision, suspension or withdrawal at any time by the assigning rating organization.

Approval-in-principle has been received for the listing and quotation of the Notes on the Singapore Exchange SecuritiesTrading Limited (the “SGX-ST”). The SGX-ST assumes no responsibility for the correctness of any of the statements made oropinions expressed or reports contained in this offering memorandum. Approval-in-principle from, and admission of the Notes to theOfficial List of, the SGX-ST and quotation of the Notes on the SGX-ST are not to be taken as an indication of the merits of theIssuer, the Parent Guarantor or the Notes. The Notes will be in denominations of US$200,000 each or integral multiples of US$1,000in excess thereof. The Notes will be traded on the SGX-ST in a minimum board lot size of US$200,000 for so long as any of the Notesare listed on the SGX-ST.

It is expected that delivery of the Notes will be made through the facilities of The Depository Trust Company on or aboutSeptember 13, 2016.

Joint Lead Managers and Joint Bookrunners

Barclays Deutsche Bank

The date of this offering memorandum is September 7, 2016.

TABLE OF CONTENTS

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Summary of the Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Summary Financial Information and Other Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Risk Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Use of Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

Exchange Rates and Exchange Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

Capitalization and Indebtedness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

Selected Financial Information and Other Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

Management’s Discussion and Analysis of Financial Condition and Results ofOperations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

Industry Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108

Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111

Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146

Principal Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154

Related Party Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155

Regulation of the Indonesian Power Generation Industry . . . . . . . . . . . . . . . . . . . . . . . . 156

The Issuer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166

Description of Existing Indebtedness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167

Description of the Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170

Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232

Plan of Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240

Transfer Restrictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246

Ratings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249

Legal Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250

Independent Public Accountants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250

General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251

Summary of Significant Differences between Indonesian FAS and U.S. GAAP . . . . . . . . 253

Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 258

THIS OFFERING MEMORANDUM DOES NOT CONSTITUTE AN OFFER TO SELL OR ASOLICITATION OF AN OFFER TO BUY IN ANY JURISDICTION TO ANY PERSON TO WHOMIT IS UNLAWFUL TO MAKE THE OFFER OR SOLICITATION IN SUCH JURISDICTION.NEITHER THE DELIVERY OF THIS OFFERING MEMORANDUM NOR ANY SALE MADEHEREUNDER SHALL, UNDER ANY CIRCUMSTANCES, CREATE ANY IMPLICATION THATTHERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE ISSUER OR THE PARENTGUARANTOR SINCE THE DATE OF THIS OFFERING MEMORANDUM OR THAT THEINFORMATION CONTAINED IN THIS OFFERING MEMORANDUM IS CORRECT AS OF ANYTIME SUBSEQUENT TO THE DATE HEREOF.

This offering memorandum is highly confidential and has been prepared by the Issuer and theParent Guarantor solely for use in connection with the Issuer’s proposed offering of Notes. TheIssuer, the Parent Guarantor, Barclays Bank PLC (“Barclays”) and Deutsche Bank AG, Hong KongBranch (together with Barclays, the “Initial Purchasers”) reserve the right to reject any offer topurchase, in whole or in part, for any reason, or to sell less than all of the Notes offered hereby.This offering memorandum is personal to the offeree to whom it has been delivered by the InitialPurchasers and does not constitute an offer to any other person or to the public in general tosubscribe for or otherwise acquire the Notes. Distribution of this offering memorandum to anyperson other than the offeree and those persons, if any, retained to advise such offeree with

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respect thereto is unauthorized, and any disclosure of any of its contents, without the prior written

consent of the Issuer and the Parent Guarantor, is prohibited. Each offeree, by accepting delivery

of this offering memorandum, agrees to the foregoing and to make no photocopies of this offering

memorandum.

Each person receiving this offering memorandum acknowledges that (i) such person has been

afforded an opportunity to request from the Issuer and the Parent Guarantor and to review, and has

received, all additional information considered by it to be necessary to verify the accuracy of, or

to supplement, the information contained herein, (ii) such person has not relied on the Initial

Purchasers or any person affiliated with the Initial Purchasers in connection with any investigationof the accuracy of such information or its investment decision, and (iii) no person has beenauthorized to give any information or to make any representation concerning the Issuer or theParent Guarantor or the Notes or the Parent Guarantee (other than as contained herein andinformation given by duly authorized officers and employees of the Parent Guarantor inconnection with investors’ examination of the Issuer, the Parent Guarantor and the terms of theoffering) and, if given or made, any such other information or representation should not be reliedupon as having been authorized by the Issuer, the Parent Guarantor or the Initial Purchasers.

IN MAKING AN INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR OWNEXAMINATION OF THE ISSUER, THE PARENT GUARANTOR AND THE TERMS OF THEOFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. THESE NOTES AND THEPARENT GUARANTEE HAVE NOT BEEN RECOMMENDED BY ANY FEDERAL OR STATESECURITIES COMMISSION OR REGULATORY AUTHORITY. FURTHERMORE, THEFOREGOING AUTHORITIES HAVE NOT CONFIRMED THE ACCURACY OR DETERMINEDTHE ADEQUACY OF THIS DOCUMENT. ANY REPRESENTATION TO THE CONTRARY IS ACRIMINAL OFFENSE.

THE ISSUER AND THE PARENT GUARANTOR ARE NOT, AND THE INITIALPURCHASERS ARE NOT, MAKING AN OFFER TO SELL THE NOTES IN ANY JURISDICTIONEXCEPT WHERE AN OFFER OR SALE IS PERMITTED. THE DISTRIBUTION OF THISOFFERING MEMORANDUM AND THE OFFERING OF NOTES MAY IN CERTAINJURISDICTIONS BE RESTRICTED BY LAW. PERSONS INTO WHOSE POSSESSION THISOFFERING MEMORANDUM COMES ARE REQUIRED BY THE ISSUER, THE PARENTGUARANTOR, THE TRUSTEE AND THE REGISTRAR, AND THE PAYING AGENT AND THEINITIAL PURCHASERS TO INFORM THEMSELVES ABOUT AND TO OBSERVE ANY SUCHRESTRICTIONS.

THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY ANDRESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDERTHE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS, PURSUANT TOREGISTRATION OR EXEMPTION THEREFROM. SEE “TRANSFER RESTRICTIONS” AND“PLAN OF DISTRIBUTION” BELOW. INVESTORS SHOULD BE AWARE THAT THEY MAY BEREQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITEPERIOD OF TIME.

NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, IS MADE BY THEINITIAL PURCHASERS, THE TRUSTEE AND THE REGISTRAR, AND THE PAYING AGENTAS TO THE ACCURACY OR COMPLETENESS OF THE INFORMATION SET FORTH HEREIN,AND NOTHING CONTAINED IN THIS OFFERING MEMORANDUM IS, OR SHALL BERELIED UPON AS A PROMISE OR REPRESENTATION, WHETHER AS TO THE PAST OR THEFUTURE. NONE OF THE INITIAL PURCHASERS, THE TRUSTEE, THE REGISTRAR OR THEPAYING AGENT HAS INDEPENDENTLY VERIFIED ANY OF SUCH INFORMATION ANDASSUMES NO RESPONSIBILITY FOR ITS ACCURACY OR COMPLETENESS.

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None of the Issuer, the Parent Guarantor, the Initial Purchasers, the Trustee, the Registrar orthe Paying Agent or any of their respective representatives is making any representation to anyofferee or purchaser of the Notes offered hereby regarding the legality of an investment by suchofferee or purchaser under appropriate legal investment or similar laws. Each investor shouldconsult with his/her own advisors as to the legal, tax, business, financial and related aspects ofpurchasing the Notes.

NOTICE TO INVESTORS IN INDONESIA

The Notes have not been offered or sold and will not be offered or sold in Indonesia or toany Indonesian nationals, corporations or residents, including by way of invitation, offering oradvertisement, and this offering memorandum and any other offering material relating to the Noteshas not been distributed, and will not be distributed, in Indonesia or to any Indonesian nationals,corporations or residents in a manner which would constitute a public offering in Indonesia underLaw No. 8 of 1995 on Capital Market.

CERTAIN DEFINED TERMS AND CONVENTIONS

We have prepared this offering memorandum using a number of conventions, which youshould consider when reading information contained herein.

In this offering memorandum, unless the context otherwise requires, “Issuer” refers toListrindo Capital B.V.; “Parent Guarantor,” the “Company” or “Cikarang Listrindo” refer to PTCikarang Listrindo Tbk; “Signal Capital” refers to Signal Capital B.V.; “PLN” refers toPerusahaan Perseroan (Persero) PT Perusahaan Listrik Negara; and “Initial Purchasers” refers tothe firms listed as the Initial Purchasers in “Plan of Distribution.” All references herein to “we,”“us,” “our,” and “our group” are references to PT Cikarang Listrindo Tbk or PT CikarangListrindo Tbk and each of its direct or indirect subsidiaries taken as a whole, depending on thecontext.

All references herein to “Indonesia” are references to the Republic of Indonesia. Allreferences to the “United States” or “U.S.” are to the United States of America. All referencesherein to the “Indonesian Government” or the “Government” are to the Government of Indonesia.Unless otherwise indicated or otherwise required by the context, all references in this offeringmemorandum to “Rupiah” or “Rp” are to Indonesian Rupiah, the lawful currency of Indonesia, andall references to “U.S. Dollars”, “US$” or “$” are to United States dollars, the lawful currency ofthe United States.

Certain other terms used in this offering memorandum are defined in the “Glossary”contained elsewhere in this offering memorandum.

Unless otherwise indicated, all amounts in relation to our group presented and discussed inthis offering memorandum are presented on a consolidated basis.

PRESENTATION OF FINANCIAL INFORMATION

Solely for the convenience of the reader, unless otherwise indicated, certain Rupiah amountsin this offering memorandum have been translated to U.S. Dollars based on the middle exchangerate announced by Bank Indonesia as of June 30, 2016, which was Rp13,180 = US$1.00. Theexchange rate used to translate historical dividend payments made in Rupiah to U.S. Dollars isbased on the middle exchange rate announced by Bank Indonesia as of the date each dividend wasdeclared. No representation is made that the Rupiah or U.S. Dollar amounts referred to in thisoffering memorandum could have been or could be converted into U.S. Dollars or Rupiah, as thecase may be, at any particular rate or at all. See “Exchange Rates and Exchange Controls.”

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Our audited consolidated financial statements as of December 31, 2013, 2014 and 2015,prepared in accordance with Indonesian Financial Accounting Standards (“Indonesian FAS”), andpresented in U.S. Dollars, our functional currency, have been audited by Purwantono, Sungkoro &Surja (a member firm of Ernst & Young Global Limited), independent auditors (“PSS”), inaccordance with Standards on Auditing established by the Indonesian Institute of Certified PublicAccountants (“IICPA”), as stated in their audit report appearing elsewhere in this offeringmemorandum. Our unaudited interim consolidated financial statements as of June 30, 2016 and forthe six-month periods ended June 30, 2016 and 2015 have been reviewed by PSS, independentauditors, in accordance with Standard on Review Engagements 2410, “Review of Interim FinancialInformation Performed by the Independent Auditor of the Entity” (“SRE 2410”), established by theIICPA, as stated in their review report appearing elsewhere in this offering memorandum. Areview is substantially less in scope than an audit conducted in accordance with Standards onAuditing established by IICPA and therefore PSS do not express an audit opinion on such financialinformation.

The financial information included in this offering memorandum has been derived from ourconsolidated financial statements. Our consolidated financial statements, which are prepared inaccordance with Indonesian FAS and presented in U.S. Dollars, are not intended to present ourconsolidated financial position, financial performance, or cash flows in accordance withaccounting principles generally accepted in countries and jurisdictions other than those inIndonesia. Indonesian FAS differ in certain significant respects from the Generally AcceptedAccounting Principles in the United States (“U.S. GAAP”). In making an investment decision, youshould rely upon your own examination of the terms of this Offering and the financial informationcontained in this offering memorandum. You should consult your own professional advisors for anunderstanding of the differences between Indonesian FAS and U.S. GAAP, and how thosedifferences could affect the financial information contained in this offering memorandum. See“Summary of Significant Differences between Indonesian FAS and U.S. GAAP” includedelsewhere in this offering memorandum for a description of significant differences betweenIndonesian FAS and U.S. GAAP.

Certain accounts in our previously issued consolidated financial statements as of December31, 2014 and 2013 and for the years then ended have been restated in connection with theadoption in 2015 of SFAS No. 24, “Employee Benefits,” the retrospective change in the treatmentof borrowing costs on loans used to finance construction of property, plant and equipment forpurposes of determining current income tax liability and the change in the presentation of cashflows from operating activities from indirect method to direct method.

Rounding adjustments have been made in calculating some of the financial and operatinginformation included in this offering memorandum. As a result, numerical figures shown as totalamounts in some tables may not be exact arithmetic aggregations of the figures that make up suchtotal amounts.

INDUSTRY AND MARKET DATA

This document includes market share and industry data and forecasts that we have obtainedfrom industry publications and surveys, reports of governmental agencies, publicly availablecorporate information and internal company surveys. Industry publications and surveys andforecasts generally state that the information contained therein has been obtained from sourcesbelieved to be reliable, but there can be no assurance as to the accuracy or completeness of theinformation. While reasonable actions have been taken by us to ensure that the information isextracted accurately and in its proper context, neither the Issuer, the Parent Guarantor nor any ofthe Initial Purchasers have independently verified any of the data from third party sources orascertained the underlying economic assumptions relied upon therein. Moreover, informationcontained in this offering memorandum relating to industrial estates to which we provide

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electricity and to customers of these industrial estates including, without limitation, tenantinformation and total kVA supplied or made available in these industrial estates, has beenestimated by us primarily based on our own supply records and information obtained from surveysof or consultation with these industrial estate customers and operators of these industrial estates.

NON-GAAP FINANCIAL MEASURES

Earnings before interest, tax, depreciation and amortization (“EBITDA”) and the relatedratios presented in this offering memorandum are supplemental measures of our performance andliquidity that are not required by, or presented in accordance with, Indonesian FAS or U.S. GAAP.EBITDA is not a measurement of financial performance or liquidity under Indonesian FAS or U.S.GAAP and should not be considered as an alternative to net income, operating income or anyother performance measures derived in accordance with Indonesian FAS or U.S. GAAP or as analternative to cash flow from operating activities as a measure of liquidity. In addition, EBITDA isnot a standardized term; hence, a direct comparison of EBITDA as reported by different companiesmay not be possible or meaningful. We believe that EBITDA facilitates comparisons of operatingperformance from period to period and company to company by eliminating potential differencescaused by variations in capital structures (affecting interest and finance charges), tax positions(such as the impact on periods or companies of changes in effective tax rates or net operatinglosses), the age and booked depreciation and amortization of assets (affecting relative depreciationand amortization of expense) and foreign exchange gains or losses. EBITDA has been presentedbecause we believe that it is frequently used by securities analysts, investors and other interestedparties in evaluating similar companies, many of whom present such non-GAAP financial measureswhen reporting their results. Finally, EBITDA is presented as a supplemental measure of ourability to service our debt. Nevertheless, EBITDA has limitations as an analytical tool, and youshould not consider it in isolation from, or as a substitute for, analysis of our financial conditionor results of operations, as reported under Indonesian FAS. Because of these limitations, EBITDAshould not be considered as a measure of discretionary cash available to us to invest in the growthof our businesses.

AVAILABLE INFORMATION

To permit compliance with Rule 144A in connection with resales of the Notes, the Issuer andthe Parent Guarantor are required to furnish upon request of a Noteholder and a prospectivepurchaser designated by such Noteholder the information required to be delivered under Rule144A(d)(4) if at the time of such request the Issuer and the Parent Guarantor are not subject to theperiodic reporting requirements of Section 13 or Section 15(d) of the U.S. Securities ExchangeAct of 1934, as amended (the “Exchange Act”), nor exempt from such reporting requirementspursuant to Rule 12g3-2(b) thereunder.

ENFORCEABILITY OF CIVIL LIABILITIES AND FOREIGN JUDGMENTS

Each of the Issuer and Signal Capital is incorporated as a private company with limitedliability (besloten vennootschap met beperkte aansprakelijkheid) under the laws of theNetherlands. Two of the directors of the Issuer reside in the Netherlands, while the third directorresides in Hong Kong. Both directors of Signal Capital reside in the Netherlands. The Issuer’sassets consist of its equity interest in Signal Capital and one or more intercompany loans, whileSignal Capital has no material assets other than certain intercompany loans to the ParentGuarantor and, after the issuance of the Notes, the Intercompany Loan (as defined herein). As a

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result, it may be difficult for investors to effect service of process upon the Issuer, Signal Capitalor such persons, or to enforce against the Issuer, Signal Capital or such persons judgmentsobtained in non-Dutch courts, including judgments obtained in U.S. courts predicated on the civilliability provisions of U.S. securities laws.

The Parent Guarantor has been advised by its Indonesian legal advisor, Assegaf Hamzah &Partners, that judgments of non-Indonesian courts are not recognized or directly enforceable inIndonesian courts and, as a result, it may not be possible to enforce judgments obtained innon-Indonesian courts against us, including any judgments on original actions brought inIndonesian courts based solely upon the civil liability provisions of the federal securities laws ofthe United States. A foreign court judgment could be admissible as non-conclusive evidence in aproceeding on the underlying claim in an Indonesian court and may be given such evidentiaryweight as the Indonesian court may deem appropriate in its sole discretion. A claimant may berequired to pursue claims in Indonesian courts on the basis of Indonesian law. Re-examination ofthe underlying claim de novo would be required before the Indonesian court. There can be noassurance that the claims or remedies available under Indonesian law will be the same, or asextensive, as those available in other jurisdictions.

As Indonesia and The Netherlands do not currently have a treaty providing for reciprocalrecognition and enforcement of judgments (other than arbitral awards) in civil and commercialmatters, a final and conclusive judgment for the payment of money rendered by any court inIndonesia which is enforceable in Indonesia, would not be enforceable in The Netherlands. Inorder to obtain a judgment which is enforceable in The Netherlands, the party in whose favor afinal and conclusive judgment of the Indonesian court has been rendered will be required to fileits claim with a court of competent jurisdiction in The Netherlands. Such party may submit to theDutch court the final judgment rendered by the Indonesian court. If and to the extent the Dutchcourt finds that the jurisdiction of the court in Indonesia has been based on grounds which areinternationally acceptable and that proper legal procedures have been observed, the Dutch courtwill, in principle, give binding effect to such final judgment, without substantive re-examinationor re-litigation on the merits of the subject matter thereof, unless such judgment contravenespublic policy of The Netherlands or is irreconcilable with a judgment of a Dutch court givenbetween the same parties or with an earlier judgment of a foreign court given between the sameparties in a dispute involving the same cause of action and subject matter, provided that suchearlier foreign judgment fulfils the conditions necessary for it to be given binding effect in theNetherlands.

The agreements entered into with respect to the issue of the Notes are governed by the lawsof the State of New York. The United States and The Netherlands currently do not have a treatyproviding for the reciprocal recognition and enforcement of judgments (other than arbitrationawards) in civil and commercial matters. Consequently, a final and conclusive judgment for thepayment of money rendered by any federal or state court in the United States which is enforceablein the United States, whether or not predicated solely upon U.S. federal securities laws, would notautomatically be recognized or enforceable in The Netherlands. In order to obtain a judgmentwhich is enforceable in The Netherlands, the party in whose favor a final and conclusive judgmentof the U.S. court has been rendered will be required to file its claim with a court of competentjurisdiction in The Netherlands. Such party may submit to the Dutch court the final judgmentrendered by the U.S. court. If and to the extent that the Dutch court finds that the jurisdiction ofthe U.S. court has been based on grounds which are internationally acceptable, that proper legalprocedures have been observed, that such judgment does not contravene Dutch public policy andthat the foreign judgment is not irreconcilable with a judgment of a Dutch court given between thesame parties or with an earlier judgment of an U.S. court given between the same parties in adispute involving the same cause of action and subject matter, provided that such earlier judgmentfulfils the conditions necessary for it to be given binding effect in the Netherlands, the court ofThe Netherlands will, in principle, give binding effect to the judgment of the court of the UnitedStates, unless such judgment contravenes principles of public policy of The Netherlands.

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Subject to the foregoing and service of process in accordance with applicable treaties,investors may be able to enforce in The Netherlands judgments in civil and commercial mattersobtained from U.S. federal or state courts. However, no assurance can be given that thosejudgments will be enforceable. In addition, it is doubtful whether a Dutch court would acceptjurisdiction and impose civil liability in an original action commenced in The Netherlands andpredicated solely upon U.S. federal securities laws. The enforcement of foreign judgments in aDutch court is subject to Dutch rules of civil procedure.

ENFORCEMENT OF THE NOTES AND PARENT GUARANTEE IN INDONESIA

Under the Indonesian Civil Code, a guarantor may waive its right to require the obligee toexhaust its legal remedies against the obligor’s assets on a guaranteed obligation prior to theobligee exercising its rights under the related guarantee. The Parent Guarantee contains a waiverof this obligation. The Parent Guarantor has been advised by its Indonesian legal advisor that itmay successfully argue that, even though a guarantee contains such waivers, the Parent Guarantormay nevertheless require that the obligee must first prove that all available legal remedies againstthe obligor have in fact, been exhausted. Accordingly, if such request is granted, the ParentGuarantor may not be required to comply with its obligations under the Parent Guarantee providedin respect of the Notes until all remedies against the Issuer have been exhausted. Paragraph 1 ofArticle 1832 of the Indonesian Civil Code stipulates that once a guarantor has waived its rights torequire a lender to exhaust its legal remedy against the obligor, such guarantor may no longerclaim otherwise. However, the outcome of specific cases in the Indonesian legal system is subjectto considerable discretion and uncertainty. See “Risk Factors — Risks Relating to the Notes, theParent Guarantee and the Offering Structure—Through the purchase of the Notes, Noteholders maybe exposed to a legal system subject to considerable discretion and uncertainty; it may be difficultor impossible for holders of the Notes to pursue claims under the Notes or the Parent Guaranteebecause of considerable discretion and uncertainty of the Indonesian legal system”.

In several court cases in Indonesia, Indonesian companies that had defaulted on debt incurredthrough offshore financing entities (using structures involving a guarantee issued by an Indonesiancompany) have successfully sued their creditors to, among other things, invalidate their debtobligations and have sought damages from creditors exceeding the original proceeds of the debtissued. In one such case, which was subsequently settled, an Indonesian court annulled thetransaction documents in a structure involving a guarantee issued by an Indonesian company fordebt of an offshore subsidiary. In another case, an Indonesian court declared a loan agreementbetween an offshore entity and its creditors null and awarded damages to the defaulting borrower.The courts’ reports of these decisions do not provide a clear factual basis or legal rationale for thejudgments.

In a June 2006 decision that was released in November 2006, the Indonesian Supreme Courtaffirmed a lower court judgment that invalidated US$500 million of notes issued through anoffshore offering structure (the “June 2006 Decision”). The decision involved an Indonesian listedcompany, PT Indah Kiat Pulp & Paper Tbk. (“Indah Kiat”), as plaintiff and various parties as thedefendants using a structure similar to this offering of the Notes and the Parent Guarantee,whereby notes were issued through a Dutch subsidiary of Indah Kiat and guaranteed by IndahKiat. The Indonesian Supreme Court upheld the decisions of a District Court and High Court inIndonesia in favor of Indah Kiat. The Indonesian courts ruled that the defendants (including thetrustee, underwriter and security agent for the issuance of the Indah Kiat notes) committed a tort(perbuatan melawan hukum), and therefore the issuance of the notes was declared null and void.The courts nullified the notes by reasoning that the contracts made in relation to the notes weresigned without any legal cause, and so did not meet the provision of Article 1320 of theIndonesian Civil Code that requires a legal cause as one of the elements for a valid agreement.The Indonesian courts accepted the plaintiff ’s argument that Indah Kiat acted both as a debtor andas a guarantor of the same debt even though in the facts of the case Indah Kiat International

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Finance Company B.V. (“Indah Kiat BV”), lndah Kiat’s Dutch subsidiary established for thepurpose of the issuance of the notes, was the issuer of the notes and Indah Kiat was the guarantorof such notes. The Indonesian courts also ruled that the establishment of Indah Kiat BV wasunlawful as it was intended to avoid Indonesian withholding tax payments.

On August 19, 2008, the Indonesian Supreme Court granted a civil review (peninjauankembali) and annulled the June 2006 Decision (“August 2008 Decision”). The Indonesian SupremeCourt in its civil review decision stated that Indah Kiat had failed to prove that the transactionwas an act of legal manipulation that caused damages to Indah Kiat. Therefore, the IndonesianSupreme Court concluded that the defendants did not commit any unlawful act. Further, theIndonesian Supreme Court maintained that it was clear that the money borrowed by Indah Kiatfrom Indah Kiat BV was in fact originated from the issuance of notes, as evidenced in the recitalof the relevant loan agreement, and thus the claim that the whole transaction was a manipulationof law had no merit. Moreover, with regard to the validity and enforceability of the securitydocuments, the civil review stated that the security agreements would prevail as long as theunderlying agreements were still valid and binding. On the tax issues, the civil review consideredthat the Indonesian Supreme Court had misapplied the tax law as it did not prohibit tax saving,and thus the claim relating to tax was annulled. The civil review also stated that for certain NewYork law governed agreements in the transaction (such as the indenture, the loan agreement, theamended and restated loan agreement and the underwriting agreement), the claim should bebrought to the appropriate court in the state of New York.

Despite the decision described above, the Indonesian Supreme Court has taken a contraryview with respect to PT Lontar Papyrus Pulp & Paper Industry (“Lontar Papyrus”), a sistercorporation of Indah Kiat. According to an Indonesian Supreme Court decision at civil reviewlevel (which was subsequently upheld by the Indonesian Supreme Court at the appellate level), inMarch 2009, the Indonesian Supreme Court refused a civil review (the “March 2009 Decision”) ofa judgment by the District Court of Kuala Tungkal, in South Sumatra, which invalidated US$550million of notes issued by APP International Finance Company B.V. (“APPC”) and guaranteed byLontar Papyrus. Lontar Papyrus’ legal arguments in its lower court case were fundamentally thesame as those in the earlier cases by Indah Kiat — namely, that, under the notes structure, theplaintiff was acting as both the debtor and guarantor for the same debt and, therefore, thestructure was invalid. The Indonesian Supreme Court’s refusal to grant a civil review effectivelyaffirmed the lower court’s decision to invalidate all of the transaction documents, including LontarPapyrus’s obligations as the guarantor under the notes, and meaning the verdict is now final. TheIndonesian Supreme Court’s refusal to grant the civil review was based on reasons that the loanagreement between APPC and Lontar Papyrus and the indenture with regard to the issuance ofnotes required adjustment to observe the prevailing laws and regulations in Indonesia. In addition,the fact that the loan has been paid in full by Lontar Papyrus to APPC under the relevant loanagreement resulted in Lontar Papyrus having no continuing outstanding legal obligation, either asdebtor under the relevant loan agreement or as guarantor under the indenture. Lontar Papyrus andIndah Kiat are subsidiaries of Asia Pulp & Paper Company Ltd., and their original court casesagainst their creditors were filed at approximately the same time. While the lower court decisionsin certain of these cases have been ultimately annulled by the Indonesian Supreme Court, as wasthe case in August 2008 in the Indah Kiat matter, it appears that the Indonesian Supreme Courthas taken a contradictory view on the Lontar Papyrus case.

In September 2011, the Indonesian Supreme Court (the “September 2011 Decision”) refused acivil review of a decision by the District Court of Bengkalis (whose judgment was the subject ofthe Indonesian Supreme Court’s June 2006 Decision and August 2008 Decision), which invalidatedthe notes issued by Indah Kiat BV. The facts and legal claims presented by Indah Kiat BV weresubstantially the same as those made by Indah Kiat in the lower court cases that were the subjectof the June 2006 Decision. The September 2011 Decision specifically noted that the IndonesianSupreme Court chose to not consider its August 2008 Decision despite such substantially similarfacts and legal claims.

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The Indonesian Supreme Court’s refusal to grant civil reviews of the lower court decisions inthe March 2009 Decision and September 2011 Decision effectively affirmed the lower courts’decisions and such lower court decisions are now final and not subject to further review.

There is also an instance where the Indonesian court, through a suspension of paymentproceedings, failed to acknowledge noteholders as creditors of the parent guarantor under aguarantee arrangement similar to that of the Notes. On December 8, 2014, the Supervisory Judgein proceedings before the Commercial Court of the Central Jakarta District Court determined thatnoteholders were not creditors of PT Bakrie Telecom Tbk (“Bakrie Tel”) for purposes of itscourt-supervised debt restructuring, known as a PKPU (the “Bakrie Tel PKPU”). Bakrie Tel, anIndonesian telecommunications company, is the guarantor of US$380 million of senior notesissued in 2010 and 2011 by a Singapore-incorporated special purpose vehicle that is a subsidiaryof Bakrie Tel. The proceeds from the offering of the notes were on-lent to Bakrie Tel pursuant toan intercompany loan agreement, which was guaranteed by Bakrie Tel and assigned to thenoteholders as collateral. In its decision affirming the composition plan, the Commercial Courtaccepted the Supervisory Judge’s determination that the relevant creditor of Bakrie Tel in respectof the US$380 million notes was the issuer subsidiary, rather than the noteholders or the trustee,and gave no effect to the guarantee. As such, only the intercompany loan was recognized by theCommercial Court as indebtedness on which Bakrie Tel was liable for purposes of the Bakrie TelPKPU. As a result, only the issuer subsidiary had standing as a Bakrie Tel creditor to vote in theBakrie Tel PKPU proceedings, which substantially altered the terms of the U.S. dollar bonds andthe guarantee. See “Risk Factors — Risks Relating to the Notes, the Parent Guarantee and theOffering Structure — An Indonesian court has limited certain rights of the trustee, acting onbehalf of the holders of U.S. dollar bonds, in relation to the parent guarantor, in a decision thataffected the holders’ rights and the terms of the bonds in connection with a debt restructuring ofthe parent guarantor”.

Similar with the Bakrie Tel PKPU case, an Indonesian company, PT Trikomsel Oke Tbk(“Trikomsel”), in early 2016 was entered into a suspension of payment obligation (PKPU) underthe Indonesia bankruptcy law regime. The PKPU administrators were reported to reject claims thatarose from their two Singaporean Dollar bonds and have taken the stance that the trustees do nothave any standing to make claims on behalf of the bondholders. Further, they asserted that onlyindividual noteholders that had filed claims on their own would be able to participate in the PKPUproceedings and to vote on the restructuring plan. Various sources indicate that the PKPUadministrators have instead acknowledged Trikomsel’s affiliates’ intercompany loan, by which theproceeds of bond issuance have been streamed. The PKPU process has been extended severaltimes, most recently to September 15, 2016, therefore discussion on the restructuring plan is stillongoing.

The Indonesian court decisions are not binding precedents and do not constitute a source oflaw at any level of the judicial hierarchy as would be the case in common law jurisdictions suchas the United States and the United Kingdom. This means that while lower courts are not boundby the Indonesian Supreme Court decisions, such decisions have persuasive force. Therefore, therecan be no assurance that in the future a court will not issue a similar decision to the June 2006Decision or the March 2009 Decision in relation to the validity and enforceability of the Notesand the Parent Guarantee or grant additional relief to the detriment of the holders of the Notes, ifwe were to contest the enforcement by the holders of the Notes of our obligations.

For a description of potential limitations on enforcement against the Parent Guarantor and theright of the holders of the Notes under the Parent Guarantee, see “Risk Factors — Risks Relatingto the Notes, the Parent Guarantee and the Offering Structure — Indonesian companies have filedsuits in Indonesian courts to invalidate transactions involving offshore offering structures, andhave brought legal action against lenders and other transaction participants; moreover, such legalaction has resulted in judgments against such defendants invalidating all obligations under theapplicable debt instruments and in damages against such defendants in excess of the amountsborrowed” and “Risk Factors — Risks Relating to the Notes, the Parent Guarantee and the

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Offering Structure — Through the purchase of the Notes, Noteholders may be exposed to a legalsystem subject to considerable discretion and uncertainty; it may be difficult or impossible forholders of the Notes to pursue claims under the Notes or the Parent Guarantee because ofconsiderable discretion and uncertainty of the Indonesian legal system.”

OFFSHORE BORROWINGS

Pursuant to Presidential Decree No. 59/1972 dated October 12, 1972 as lastly amended byPresidential Decree No. 120/1998 dated August 12, 1998 (“Presidential Decree No. 59/1972”), theParent Guarantor is required to report details regarding its offshore debt to the Minister of Financeof Indonesia and Bank Indonesia, on the acceptance, implementation and repayment of principaland interest. The Ministry of Finance Decree No. KEP-261/MK/IV/5/73 dated May 3, 1973, asamended by the Ministry of Finance Decree No.417/KMK.013/1989 dated May 1, 1989, and theMinistry of Finance Decree No. 279/ KMK.01/1991 dated March 18, 1991, as the implementingregulation of the Presidential Decree No. 59/1972, further set forth the requirements to submitperiodic reports regarding offshore debt (including guarantees over offshore debt) to the Ministryof Finance of Indonesia and Bank Indonesia on the effective date of the contract and eachsubsequent three-month period. Further, pursuant to Presidential Decree No. 39/1991 datedSeptember 4, 1991, all offshore commercial borrowers must submit periodic reports to the Team ofOffshore Commercial Borrowings (the “PKLN Team”) upon the implementation of their offshorecommercial borrowings. Presidential Decree No. 39/1991 does not stipulate the time frame or theformat and the content of the periodic reports that must be submitted.

On December 31, 2014, Bank Indonesia issued Bank Indonesia Regulation No.16/22/PBI/2014 regarding the Reporting on Foreign Exchange Activities and Reporting on theImplementation of Prudential Principles in the Management of Non-Bank Corporation’s OffshoreDebt (“PBI 16/22”). This regulation supersedes the Bank Indonesia Regulation No. 14/21/PBI/2012regarding the Reporting on Foreign Exchange Activities (“PBI 14/21”) which took effect onJanuary 1, 2015. However, the implementing regulation of PBI 14/21, namely the Bank IndonesiaCircular Letter No. 15/16/Dlnt dated April 29, 2013 on the Reporting of Foreign ExchangeActivities in the form of Offshore Debt Realization and Position (“SEBI 15/16/DInt”) wouldremain valid to the extent it did not contravene PBI 16/22. Bank Indonesia has issuedimplementing regulations for PBI 16/22, namely (i) the Bank Indonesia Circular Letter No.17/4/DSta dated March 6, 2015 on the Reporting of Foreign Exchange Activities in the form ofOffshore Debt Plan and the Amendment thereto (“SEBI 17/4/DSta”) which supersedes BankIndonesia Circular Letter No. 15/17/Dint dated April 29, 2013; (ii) Bank Indonesia Circular No.17/3/DSta dated March 6, 2015 on the Reporting of the Implementation of Prudential Principles inthe Management of Non-Bank Corporation’s Offshore Debt as amended by Bank IndonesiaCircular No. 17/24/DSta dated October 12, 2015 (“SEBI 17/3/DSta”); and (iii) the Bank IndonesiaCircular Letter No. 17/26/DSta dated October 15, 2015 on the Reporting on Foreign ExchangeActivities other than Offshore Debt (“SEBI 17/26/DSta”), which supersedes Bank IndonesiaCircular Letter No. 15/5/DSM dated March 7, 2013.

PBI 16/22 requires all Indonesian residents who engage in foreign exchange activities,whether individual or entities, to report (i) any trading of goods, services and other transactionbetween an Indonesian resident and a non-resident; (ii) position and changes to offshore financialassets and/or offshore financial liabilities; and/or (iii) offshore debt plan and/or its realization toBank Indonesia. The report on foreign exchange activities must be submitted using an onlinesystem in accordance with each implementing regulations of PBI 16/22 as applicable, namelySEBI 17/26/DSta, SEBI 15/16/Dint, SEBI 17/4/DSta and SEBI 17/3/DSta.

Pursuant to SEBI 17/26/DSta, the following reports must be submitted to Bank Indonesia: (i)a report on trading transactions of goods, services, and other transactions between Indonesianresidents and non-residents, (ii) a report on positions held and changes to offshore financial assets,(iii) a report on positions held and changes to equity of non-residents and other relatedobligations, (iv) a report on positions held and changes to offshore derivative obligations, (v) areport on positions held in offshore contingencies and commitments, and (vi) a report on positions

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held in securities owned by custodian customers. The report specified in (v) covers corporateguarantees, and any corporate guarantee given to a foreign lender which must be reported to BankIndonesia. Such reports and/or corrections of such reports (if any) are to be submitted throughBank Indonesia’s website in a format that is specified under SEBI 17/26/DSta.

According to SEBI 15/16/DInt, any individual or entity that obtains offshore debt in aforeign currency and/or Rupiah pursuant to loan agreements, debt securities, trade credits or otherloans, except two-step loans incurred by the Government (which refer to loans made byinternational financial institutions that are distributed to Indonesian commercial and rural banksthrough Bank Indonesia to support the Government’s programs), clearing accounts, savings anddeposits, must submit reports to Bank Indonesia. There is no minimum amount requirement totrigger the reporting obligation with regard to offshore debt obtained by an entity (whether afinancial or non-financial institution). In contrast, an individual’s offshore debt is only required tobe reported if such debt exceeds an amount of US$200,000 or its equivalent in any other currency.The reports consist of the main data report and/or amendments and the monthly recapitulation datareport. The main data report must be submitted to Bank Indonesia by no later than 15th day of thefollowing month at 14:00 Western Indonesia time after the signing of the loan agreement or theissuance of the debt securities and/or the debt acknowledgment over the trade credits and/or otherloans, and a monthly recapitulation data report must be submitted to Bank Indonesia by no laterthan 15th day of the following month at 24:00 Western Indonesia time, until the offshore debt hasbeen repaid in full.

According to SEBI 17/4/DSta, a company that intends to obtain a long-term offshore debt,namely a debt with tenor of more than one year, is required to submit reports on offshore debtplans to Bank Indonesia, through an online system by no later than March 15th of the respectiveyear, while any changes thereto must be submitted through an online system at the latest by July1st of the respective year. The procedure to submit such reports is stipulated in SEBI 17/4/DSta.

In addition to reporting on foreign exchange activities, for the purpose of PBI 16/21/ 2014(as defined below), PBI 16/22 also requires reporting on the implementation of PrudentialPrinciples. Under the SEBI 17/3/DSta, non-bank corporations must submit:

(1) the prudential principle implementation activity report (“KPPK report”): (i) anon-attested KPPK Report, which is to be submitted on quarterly basis, no later than theend of the third month after the end of the relevant quarter; and (ii) an attested KPPKreport (attested by a public accountant), which is to be submitted no later than the endof June of the following year;

(2) information on the fulfillment of credit ratings, which is to be submitted at the latest atthe end of the month following the execution or issuance of the offshore debt; and

(3) the financial statements of the company, consisting of: (i) unaudited financialstatements, to be submitted on quarterly basis, by no later than the end of the thirdmonth after the end of the relevant quarter; and (ii) annual audited financial statements,which must be submitted by no later than end of June of the following year.

Bank Indonesia examines the accuracy of the foreign exchange activities report and theprudential principle implementation activity report. It can also request clarifications, evidence,records or other supporting documents from the relevant party or institutions, including directinspection to the company or appoint a third party to do so.

As of January 1, 2016, submissions of and corrections to the prudential principleimplementation activity report shall be made online. The requirement to submit credit ratingsfulfillment only applies to offshore debt executed or issued as of January 1, 2016.

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On December 23, 2015, Bank Indonesia issued Bank Indonesia Regulation No. 17/23/PBI

2015 to amend Bank Indonesia Regulation No. 16/10/PBI/2014 on Foreign Exchange Export

Revenue and Drawdown of Offshore Debt which was issued on May 14, 2014 (“PBI 16/10/2014”).

PBI 16/10/2014 revokes and replaces Bank Indonesia Regulation No. 13/22/PBI/2011 and Bank

Indonesia Regulation No. 14/25/PBI/2012. On April 6, 2015, Bank Indonesia issued Bank

Indonesia Circular Letter No. 18/5/DSta on the Receipt of Offshore Debt to revoke and replace

Bank Indonesia Circular Letter No. 16/10/DSta dated May 26, 2014 on Drawdown of Offshore

Debt, as the implementing regulation for PBI 16/10/2014. Based on PBI 16/10/2014, any

drawdown from offshore debt (in foreign currencies) originating from (i) a non-revolving loanagreement (including offshore debt originating from a difference between the refinanced debt andthe previous debt) or (ii) offshore debt securities (including acknowledgements of debt which istradable in domestic or international financial and capital markets, among others, in the form ofbonds, medium term notes, floating rate notes, promissory notes and commercial paper) must bewithdrawn through foreign exchange banks (which include offshore bank branches in Indonesia)and must be reported to Bank Indonesia with the relevant supporting documents. The aggregateface amount of the offshore debt should be equal to the local commitments provided under suchdebt and every receipt of offshore debt through a foreign exchange bank should be equal to eachoffshore debt withdrawal. In the event that the aggregate face amount of the offshore debt is lessthan the local commitments in excess of Rp.50,000,000 (or its equivalent in foreign currencies),the borrower must submit a written explanation and sufficient supporting documentation to BankIndonesia before the expiration of the term of such debt. In the event that each receipt amount ofoffshore debt received through foreign exchange bank is less the amount of each offshore debtwithdrawal, such receipt amount of offshore debt received through foreign exchange bank will bedeemed equal to the amount of each offshore debt withdrawal if the borrower submits sufficientsupporting documents to Bank Indonesia. Withdrawals of the above offshore debt must be reportedto Bank Indonesia monthly using the recapitulation data report as regulated under SEBI15/16/DInt. These reports shall include supporting documents detailing that the receipt of offshoredebt was withdrawn from the foreign exchange bank. Administrative sanctions will be imposed oncompanies that fail to comply with such reporting obligations.

With respect to the foregoing reporting obligations to Bank Indonesia, the sanction that maybe imposed by Bank Indonesia is as follows:

(1) any delay and failure to submit foreign exchange report on offshore debt plan isadministrative sanction in the form of warning letter and/or notification to the relevantauthority or institution which will be issued by Bank Indonesia;

(2) any omission or inaccuracy of information on a foreign exchange report (except foroffshore debt plan) which is not corrected is an administrative sanction in the form ofpenalty at the amount of Rp.50,000 (fifty thousand Rupiah) per omission and/orinaccuracy, provided that the maximum amount of penalty imposed will not exceedRp.10,000,000 (ten million Rupiah);

(3) any incompleteness and/or inaccuracy of information on the KPPK Report, is anadministrative sanction in the form of penalty at the amount of Rp.500,000 (fivehundred thousand Rupiah) per incompleteness and/or inaccuracy;

(4) any delay to submit the foreign exchange report (except for offshore debt plan) and theKPPK Report, including its supporting documents and financial statements (except forinformation on credit rating), is an administrative sanction in the form of penalty at theamount of Rp.500,000 (five hundred thousand Rupiah) per day of delay, provided thatthe maximum amount of penalty imposed will not exceed Rp.5,000,000 (five millionRupiah);

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(5) any failure to submit the foreign exchange report (except for offshore debt plan) and theKPPK Report, including its supporting documents and financial statements (except forinformation on credit rating), is an administrative sanction in the form of penalty at theamount of Rp.10,000,000 (ten million Rupiah);

(6) in addition to penalty, administrative sanction in form of warning letter and/ornotification to the relevant authority or institution will be issued by Bank Indonesia forany delay and failure to submit the KPPK Report, including its supporting documentsand financial statement;

(7) any delay and failure to submit information on credit rating is administrative sanction inform of warning letter and/or notification to the relevant authority or institution whichwill be issued by Bank Indonesia; and

(8) any failure to comply with the obligation to withdraw the offshore debt through aforeign exchange bank in Indonesia is an administrative sanction in the form of penaltyof 0.25% (zero point two five percent) of the withdrawal amount which does not passthrough foreign exchange bank in Indonesia, provided that the maximum amount ofpenalty imposed will not exceed Rp.50,000,000 (fifty million Rupiah).

Please note that the sanction that is imposed by Bank Indonesia in connection with the reporton prudential principle implementation activity, including its supporting documents (except forinformation on credit rating) has been effective since the third quarter data report of 2015, whilethe sanction in connection with the report on prudential principles implementation with respect tocredit rating has been effective since January 1, 2016.

Related to report on prudential principle implementation activity as regulated under PBI16/22 is regulation which was issued by Bank Indonesia on December 29, 2014, namely BankIndonesia Regulation No. 16/21/PBI/ 2014 on the Implementation of Prudential Principles in theManagement of Non-Bank Corporation’s Offshore Debt as amended by Bank Indonesia RegulationNo. 18/4/PBI/2016 dated April 22, 2016 (“PBI 16/21/2014”), which is applicable to non-bankcorporations that obtain offshore Debt in a foreign currency (non-Indonesian Rupiah) and for theimplementation of PBI 16/21/2014, Bank Indonesia also issued (i) Bank Indonesia Circular LetterNo. 16/24/DKEM dated December 30, 2014, as amended by Bank Indonesia Circular Letter No.17/18/DKEM dated June 30, 2015 and most recently amended by Bank Indonesia Circular LetterNo. 18/6/DKEM dated April 22, 2016 (“SEBI 16/24/DKEM”) and (ii) SEBI 17/3/DSta.

PBI 16/21/2014 requires non-bank corporations that have offshore debt in a foreign currency(non-Indonesian Rupiah) to maintain the following prudential principles, namely: (i) minimumhedging requirement, (ii) minimum liquidity requirement and (iii) minimum credit ratings. Thehedging requirement does not apply to non-bank corporations whose financial statement arepresented in United States dollars and who fulfill the following criteria: (i) having an exportrevenue to business revenue ration of more than 50% in the previous calendar year, and (ii) havingobtained approval from the Ministry of Finance to use United States dollars in their financialstatement, which approval shall be evidenced by submitting supporting documents to BankIndonesia.

The minimum hedging requirement is applied with a two-stage approach to avoid unnecessarydifficulties for corporations having existing offshore debt. Until December 31, 2015, the minimumhedging ratio was set at 20% of (i) the negative difference between the foreign exchange assetsand the foreign exchange liabilities that will become due within three months from the end of therelevant quarter, and (ii) the negative difference between the foreign exchange assets and theforeign exchange liabilities that will become due in the period of more than three months up tosix months after the end of the relevant quarter. After December 31, 2015, the minimum hedgingratio is set at 25% of (i) the negative difference between the foreign exchange assets and theforeign exchange liabilities that will become due within three months from the end of the relevantquarter and (ii) the negative difference between the foreign exchange assets and the foreign

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exchange liabilities that will become due in the period of more than three months up to sixmonths after the end of the relevant quarter. Foreign currency assets comprises of cash, demanddeposits, regular deposits, term deposits, account receivables, inventories, marketable securitiesand receivables from forwards, swaps and/or options transactions in a foreign currency(non-Indonesian Rupiah) calculated based on position at the end of the relevant quarter. Theaccount receivables which may be calculated as foreign currency assets are account receivables toresident and non-resident which will be due (a) within three months from the end of the relevantquarter and/or (b) in the period of more than three months up to six months after the end of therelevant quarter, which are true-sale in nature or non-refundable and after deducted withamortization. Accounts receivable may be calculated as foreign currency assets if such underlyingagreement was executed prior to July 1, 2015. Account receivables with underlying agreementexecuted starting from July 1, 2015 may be counted as foreign exchange assets if: (a) they arerelated to strategic infrastructure projects and have obtained Bank Indonesia approval; or (b) thetransaction which underlies the foreign currency assets is permitted to be in foreign currencypursuant to Bank Indonesia Regulation No. 17/3/PBI/2015 on the Mandatory Use of Rupiah in theterritory of the Republic of Indonesia (“PBI 17/3”). Inventory which may be calculated as aforeign currency asset is inventory from exporters with export income to business revenue ratio ofmore than 50% in the previous calendar year.

SEBI 16/24/DKEM defines foreign currency liabilities as liabilities in foreign currency toresidents and non-residents, including liability deriving from forwards, swaps and/or optionstransactions maturing (a) within three months from the end of the relevant quarter; and (b)between three and six months from the end of the relevant quarter. Foreign currency liabilitywhich will be due may not be calculated as foreign currency liability if (a) it is in the process ofroll over, revolving, or refinancing, to the extent the transaction which underlies it is inaccordance with PBI 17/3; and/or (b) it constitutes foreign currency liability with respect toproject financing which will be due within the next 6 months to the extent secured by offshoredebt drawdown in foreign currency where the schedule of such drawdown is adjusted to thepayable foreign currency liabilities and the transaction activities are in accordance with PBI 17/3.These two points must be proven by sufficient supporting documentation. SEBI 16/24/DKEMdetermines that only corporations that have negative difference of more than US$100,000 areobliged to fulfill the minimum hedging requirement. In addition, PBI 16/21/2014 also regulatesthat hedging transactions for the fulfillment of the minimum hedging requirement shall beconducted with banks in Indonesia and shall become effective in 2017.

On the minimum liquidity requirement, non-bank corporations that have offshore debt inforeign currency are also required to comply with the minimum liquidity ratio of at least 70% byproviding sufficient foreign exchange assets against foreign exchange liabilities that will becomedue within three months from the end of the relevant quarter. The minimum liquidity ratio of 70%was effective on January 1, 2016, while the applicable minimum liquidity ratio in 2015 was 50%.

The minimum credit rating requirement is required to be maintained at BB- (BB minus) or itsequivalent from a particular rating agency recognized by Bank Indonesia. Such credit rating willbe in the form of the applicable rating over the relevant corporation (issuer rating) and/or bonds(issue rating) in accordance with the type and period of such foreign currency offshore debt. Suchrating shall be valid for two years as of the rating issuance. PBI 16/21/2014 sets additionalprovisions where corporation may use their parent company credit rating if (i) such corporationenters into an offshore debt in foreign currency with its parent company, or if the offshore debt isguaranteed by the parent company, or (ii) such corporation is a newly established corporation witha maximum three years since the corporation begins its commercial operation. The requirement tofulfill the minimum credit rating requirement is exempted for (i) the refinancing of offshore debtin foreign currency (such exemption is limited to refinancing which does not increase theoutstanding amount of the previous debt or if it increases, such increase shall not exceed (a)US$2,000,000 or its equivalent or (b) 5% of the outstanding of such refinanced debt if such 5%figure is higher than US$2,000,000 or its equivalent); (ii) offshore debt in foreign currency forinfrastructure project financing derived (a) all from an international bilateral/multilateral lending

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agency or (b) from syndications loan where more than 50% of the contribution comes frominternational bilateral/multilateral institutions; (iii) offshore debt in foreign currency for central orregional government infrastructure project financing; (iv) offshore debt in foreign currency whichis secured by international bilateral/multilateral institutions; (v) offshore debt in foreign currencyin form of trade credits; (vi) offshore debt in foreign currency in form of other loans; (vii)offshore debt in foreign currency by a finance company (a business entity which conductsfinancing activities for the procurement of goods and services) to the extent (a) such financecompany has minimum financial soundness of “healthy” as lastly issued by OJK; (b) such financecompany fulfils the maximum gearing ratio as regulated by OJK); or (viii) offshore debt in foreigncurrency by Lembaga Pembiayaan Ekspor Indonesia (Indonesia Eximbank). Non-bank corporationsthat have offshore debt in foreign currency are obliged to submit report to Bank Indonesia on theimplementation of prudential principles and the exemptions, together with the relevant supportingdocuments. Bank Indonesia will monitor for compliance and may impose administrative sanctionsin the form of warning letters for any failure to comply with the said three prudential criteria. PBI16/21/2014 does not specify any other sanction in the event the non-bank corporations ignore suchwarning letter, however Bank Indonesia may inform related parties, such as relevant offshorecreditors, the Ministry of State-Owned Companies (for state-owned non-bank corporation), theMinistry of Finance on behalf of Directorate General of Tax, OJK and the Indonesian StockExchange (the “IDX”) (for publicly listed non-bank corporation) on the implementation ofadministrative sanctions. PBI 16/21/2014 became effective as of January 1, 2015, with exceptionsfor the implementation of (i) the administrative sanction requirement, which became effectivestarting from the delivery of the fourth quarter report of 2015, and (ii) the minimum credit ratingrequirement, which applies to offshore debt that is signed or issued on or after January 1, 2016.

PERIODIC REPORTS

Publicly listed companies are required by OJK regulations to periodically submit financialreports including annual financial statements and semi-annual financial statements pursuant toBapepam-LK Regulation No. X.K.2 on Obligation to Submit Periodic Financial Statements(“Bapepam-LK Regulation X.K.2”). OJK replaced and assumed the function, duty and authority ofthe Indonesian Capital Markets and Financial Supervisory Agency (Badan Pengawas Pasar Modaldan Lembaga Keuangan) (“Bapepam-LK”) with effect from December 31, 2012. In addition, theIDX requires publicly-listed companies to submit annual and interim (quarterly) financialStatements pursuant to IDX Regulation No. I-E on Obligations of Information Submission (“IDXRegulation No. I-E”). Under Law No. 40 of 2007 regarding Limited Liability Company (the“Company Law”), the board of directors must submit an annual report to a General Meeting ofShareholders. Pursuant to OJK Regulation No. 31/POJK.04/2015 on Disclosure on MaterialInformation or Facts by Issuers or Public Companies (“OJK Regulation 31/2015”) and IDXRegulation No. I-E, publicly listed companies are required to report to OJK and the IDX and arerequired to announce any material public information or facts that may affect the price ofsecurities or investors’ decision to the public, no later than two business days after the event hasoccurred. Further, pursuant to OJK Regulation No. 31/2015, the announcement shall include thefollowing: (i) the date of the event, (ii) the types of material information, (iii) a description of thematerial information, and (iv) the impact caused by such material information. Publicly listedcompanies are also required to submit an annual report to OJK and IDX consisting of a summaryof material financial data, the Board of Directors’ and Board of Commissioners’ report, companyprofile, management analysis and discussion, corporate governance, corporate social responsibility,audited annual financial statement, and statement letter on the responsibilities of the Board ofDirectors and the Board of Commissioners in relation with the content in the financial statementpursuant to Bapepam-LK Regulation No. X.K.6 on Obligation to Submit Annual Report for Issuersor Public Companies (“Bapepam-LK Regulation X.K.6”) and IDX Regulation No. I-E. The annualreport must be submitted to OJK and IDX no later than 4 months following the end of a financialyear.

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LANGUAGE OF THE TRANSACTION DOCUMENTS

Pursuant to Article 31 of Law No. 24 of 2009 on Flag, Language, Coat of Arms, andNational Anthem that was enacted on July 9, 2009 (“Law No. 24/2009”), agreements to whichIndonesian parties are a party are required to be executed in Bahasa Indonesia, although, when aforeign entity is a party, a dual-language document in English or the national language of therelevant party is permitted. There exists substantial uncertainty on how Law No. 24/2009 will beinterpreted and applied, and it is not certain that an Indonesian court would permit the Englishversion to prevail or even consider the English version. See “Risk Factors — Risks Relating toGovernment Regulation”. The Indenture and other documents entered into in connection with theissuance of the Notes will be prepared in Bahasa Indonesia. However, there can be no assurance,in the event of inconsistencies between the Bahasa Indonesia and English Language version ofthose documents, an Indonesian court would hold that the English versions of such documentsprevail. Furthermore, a translation from English to Bahasa Indonesia may not accurately reflectthe original intent of the parties.

On December 28, 2009, the Ministry of Law and Human Rights of the Republic of Indonesiaissued Letter No.M.HH.UM.01.01-35 regarding the Clarification for Implication andImplementation of Law No. 24/2009 (the “MOLHR Clarification Letter”) in connection withArticle 31 of Law No. 24/2009, which clarified the use of Bahasa Indonesia pursuant to Law No.24/2009. The MOLHR Clarification Letter stipulates that, even if an agreement betweenIndonesian private entities (lembaga swasta Indonesia) is executed in English, such agreementshould not violate the provisions of Article 31 of Law No. 24/2009. As the basis for this analysis,the MOLHR Clarification Letter references to Article 40 of Law No. 24/2009, which states thatthe use of Bahasa Indonesia, including for the purpose of Article 31 of Law No. 24/2009, shall befurther regulated by Presidential Regulations. Pursuant to the MOLHR Clarification Letter, untilfurther implementing regulations of Article 31 of Law No. 24/2009 have been issued, anagreement between Indonesian private entities that is executed in English should not be deemed tohave violated the provisions of Article 31 of Law No. 24/2009. On July 7, 2014, the Governmentissued an implementing regulation (“Government Regulation 57/2014”) to give effect to certainprovisions of Law No. 24/2009. Government Regulation 57/2014 focuses on the promotion andprotection of the Indonesian language and literature and, while it is silent on the question ofcontractual language, it does serve as a timely reminder that contracts involving Indonesian partiesmust be executed in Bahasa Indonesia (although versions in other languages are also permitted).Hence, pursuant to the MOLHR Clarification Letter, any agreement that is executed in Englishwithout a Bahasa version is still legal and valid, and does not violate Article 31 of Law No.24/2009. However, this letter was issued only as an opinion and does not fall within the types andhierarchy as stipulated in Article 7 of Law No. 12 of 2014 regarding the Formation of Laws andRegulations to be considered as a law or regulation and therefore has no legal force.

On June 20, 2013, the District Court of West Jakarta released Decision No.451/Pdt.G/2012/PN.Jkt.Bar, which annulled a loan agreement between an Indonesian borrower,namely PT Bangun Karya Pratama Lestari as plaintiff, and a non-Indonesian lender, Nine AM Ltdas defendant. The loan agreement was governed by Indonesian law and was drafted only in theEnglish language. The court ruled that the agreement contravened Article 31(1) of Law No.24/2009 and declared it to be invalid. In arriving at this conclusion, the court relied on Articles1320, 1335 and 1337 of the Indonesian Civil Code, which taken together render an agreement voidif, inter alia, it is tainted by illegality. The court held that as the agreement had not been draftedin the Indonesian language, as required by Article 31(1), it therefore failed to satisfy the “lawfulcause” requirement and was void from the outset, meaning that a valid and binding agreement hadnever existed. Then, the defendant appealed to the Jakarta High Court. On May 7, 2014, theJakarta High Court released Decision No. 48/PDT/2014/PT.DKI, which affirmed the DistrictCourt’s decision. Subsequently, the Supreme Court rejected an appeal of the Jakarta High Courtdecision. As of the date of this offering memorandum, no further action has been made by eitherparty.

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On January 15, 2014, Law No. 2 of 2014 on Amendment to the Law No. 30 of 2004 onNotary Profession (“Notary Law”) was issued. Pursuant to the Notary Law, a notarial deed madeafter January 15, 2014 must be drawn up in the Indonesian language. If the parties require, thenotarial deed can be made in a foreign language and in such an event, the notary must translatethe deed into the Indonesian language but in the event of different interpretation as to the contentof the deed, the Indonesian language deed shall prevail.

We have executed and will execute dual English and Bahasa Indonesia versions of alltransaction agreements, to which the Parent Guarantor is party. All of these documents provide orwill provide that in the event of a discrepancy or inconsistency, the parties intend the Englishversion to prevail. Some concepts in the English language may not have a corresponding term inthe Indonesian language and the exact meaning of the English text may not be fully captured bythe Indonesian language version. If this occurs, there can be no assurance that the terms of theNotes and the Parent Guarantee, including the Indenture, will be as described in this offeringmemorandum, or will be interpreted and enforced by the Indonesian courts as intended.

FORWARD-LOOKING STATEMENTS

This offering memorandum contains “forward-looking” statements. All statements other thanstatements of historical fact contained in this offering memorandum including, without limitation,those regarding our future financial position and results of operations, strategy, plans, objectives,goals and targets, future developments in the markets where we participate or are seeking toparticipate, and any statements preceded by, followed by or that include the words “believe,”“expect,” “aim,” “intend,” “will,” “may,” “project,” “estimate,” “anticipate,” “predict,” “seek,”“should” or similar words or expressions, are forward-looking statements. The future eventsreferred to in these forward-looking statements involve known and unknown risks, uncertaintiesand other factors, some of which are beyond the control of the Issuer and the Parent Guarantor,which may cause actual results, performance or achievements or industry results to be materiallydifferent from any future results, performance or achievements or industry results expressed orimplied by the forward-looking statements. These forward-looking statements are based onnumerous assumptions regarding the Parent Guarantor’s present and future business strategies andthe environment in which we will operate in the future and are not a guarantee of futureperformance. Important factors that could cause the actual results, performance or achievements todiffer materially from those in the forward-looking statements include, among others, thefollowing:

• economic, social and political conditions in Indonesia;

• actions by our customers and suppliers that adversely affect our business;

• increases in regulatory burdens in Indonesia, including environmental regulations andcompliance costs;

• fluctuations in foreign currency exchange rates; and

• other risks, uncertainties and factors set forth under “Risk Factors.”

When relying on forward-looking statements, you should carefully consider the foregoingfactors and other uncertainties and events, especially in light of the political, economic, social andlegal environment in which we operate. Such forward-looking statements speak only as of the dateon which they are made. Accordingly, we undertake no obligation to update or revise any of them,whether as a result of new information, future events or otherwise. Neither the Issuer nor theParent Guarantor makes any representation, warranty or prediction that the results anticipated by

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such forward-looking statements will be achieved, and such forward-looking statements represent,

in each case, only one of many possible scenarios and should not be viewed as the most likely or

standard scenario. Accordingly, you should not place undue reliance on any forward-looking

statements.

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SUMMARY

This summary may not contain all the information that may be important to you in decidingto invest in the Notes. This offering memorandum has been prepared by the Issuer and the ParentGuarantor solely for use in connection with the Issuer’s proposed offering of Notes. All referencesherein to “we,” “us,” “our,” and “our group” are references to PT Cikarang Listrindo Tbk or PTCikarang Listrindo Tbk and each of its direct or indirect subsidiaries taken as a whole, dependingon the context. You should read the entire offering memorandum, including our consolidatedfinancial statements and related notes and the section entitled “Risk Factors” beginning on page20 included in this offering memorandum before making an investment decision.

Overview

We are engaged in electricity generation and distribution in Indonesia. As the holder of anintegrated Electricity Undertaking License to Supply to the Public (“IUKU license”), we are thesole private supplier of electricity to 2,223 customers located in five neighboring industrial estatesin the Cikarang area as of June 30, 2016. We also supply electricity to PLN, a state-owned electricutility company, under the Electrical Power Supply and Purchase Agreement (“EPSPA”) pursuantto which PLN has committed to purchase a fixed volume of electricity from us each month on a“take-or-pay” basis. Our industrial estates business has in recent years offered consistent revenuegrowth and strong cash flow, while our PLN business provides reliable demand. CikarangListrindo’s shares were listed for trading on the Indonesia Stock Exchange on June 14, 2016 andhad a market capitalization of US$1.9 billion as of August 18, 2016 based on a price of Rp1,575per share.

We own and operate two natural gas-fired combined-cycle power plants with a combinedinstalled generation capacity of 864 MW. Our power plants are located on two sites in theCikarang area of the Bekasi Regency of approximately 16 hectares and 12 hectares, respectively,approximately 45 kilometers east of Jakarta.

Our first gas-fired power plant commenced operations in November 1993 with two GE Frame6B gas turbines providing an installed generation capacity of 60 MW. By the end of 1998, we hadincreased our installed generation capacity to 300 MW through the installation of four additionalGE Frame 6B gas turbines and other ancillary equipment. In 2005, we launched a capacityexpansion plan, which increased installed generation capacity to 646 MW by 2011 through theinstallation of two GE Frame 9E gas turbines and other ancillary equipment. In June 2012, weinstalled a third GE Frame 9E gas turbine with other ancillary equipment, increasing the plant’sinstalled generation capacity to its current level of 755 MW. We are using the third GE Frame 9Egas turbine as a backup unit to be operated as required when any existing gas turbine unitundergoes maintenance or experiences a shutdown. Further, in December 2012, we added three150kV switchyard bays, a 60/80 MV distribution transformer and a switchgear building.

Our second gas-fired power plant was completed in the fourth quarter of 2014 andcommenced operations in July 2015. It utilizes a GE Frame 9E gas turbine and has an installedgeneration capacity of 109 MW. It is located in the MM-2100 industrial estate close to our firstgas-fired power plant, and is intended as a backup plant to be operated as required. It consists ofa GE Frame 9E gas turbine, a 15-bay 150kV switchyard with 12 bays fully equipped, four 60/80MVA distribution transformers and a switchgear building. A double circuit 150kV overheadtransmission line connects our second gas-fired power plant with our first gas-fired power plant inCikarang. The plant has a generator voltage of 15kV and a main transmission voltage of 150kV.The 150kV supply is connected to the 150kV system of our first gas-fired power plant, and theelectricity it generates is synchronized with the operation of our first gas-fired power plant at the150kV level. The 150kV supply also feeds into four distribution transformers, where it is steppeddown to 20kV and is distributed into our pre-existing distribution system to supply to ourcustomers.

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To complement our existing gas-fired power plants and in anticipation of continued growth indemand from existing industrial estate customers and the addition of new industrial estatecustomers, we are currently constructing a coal-fired power plant on an approximately 72 hectaresite in Babelan, Bekasi, which is approximately 20 kilometers east of Jakarta. The construction ofthe coal-fired power plant commenced in December 2012, and it is expected to be fullycommissioned in the fourth quarter of 2016. The coal-fired power plant will consist of twoturbines, each with an installed generation capacity of approximately 140 MW, representing a totalinstalled generation capacity of approximately 280 MW. The coal-fired power plant will also havea generator voltage of 15kV and a main transmission voltage of 150kV, which will beinterconnected and also connected to the 150kV system of our existing power plants, and back-upsupply will also be taken for the start-up of the coal-fired plant. The electricity supply generatedfrom the coal-fired power plant will be synchronized with the operation of the existing powerplants at the 150kV level and its supply will be distributed into our existing distribution system tosupply to our customers.

On October 26, 2015, we and GE Capital entered into a Memorandum of Understanding (the“MoU”) related to an equity investment in a joint venture to develop a planned 1,100 to 1,400MW gas-fired combine cycle electricity generation facility in Indonesia utilizing General Electric’s(“GE”) Frame 9HA gas turbine model. The facility is intended to be built on land currently ownedby us and located in the MM-2100 industrial estate. The MoU sets forth the intended frameworkfor the development of the new gas-fired electricity generation facility to the mutual benefit ofboth parties. This transaction is subject to us and GE Capital reaching definitive agreementssetting forth the details of terms and conditions of the cooperation, including our securing a powerpurchase agreement with PLN for at least an additional 1,100 MW of supply.

We supply power to our industrial estate customers through our 20kV and 380V distributionsystems and to PLN through our 150kV transmission system. In total, we own over 1,329 km of20kV distribution lines and over 3 km of 150kV transmission lines, and we currently haveapproximately 30 km of transmission lines under construction in connection with our newcoal-fired power plant, several sections of which are already complete with the full length of theline scheduled to be completed and energized by September 2016. The power plants and theelectricity transmission and distribution systems are owned by us, and are operated and maintainedby our own trained staff and, as necessary, by third-party service providers. Our third partyservice providers include, among others, General Electric, which provides technical advisory andrepair services for our GE gas turbines, Mitsubishi Electric Corporation, which provides technicaladvisory services for our Mitsubishi steam turbines, and Siemens, which provides technicaladvisory services for our Siemens steam turbines.

We had net sales of US$544.7 million for the year ended December 31, 2014, US$547.9million for the year ended December 31, 2015 and US$274.7 million for the six-month periodended June 30, 2016. Net sales to industrial estate customers accounted for 70.4%, 69.7% and72.9% of our total net sales for the years ended December 31, 2014 and 2015 and the six-monthperiod ended June 30, 2016, respectively. We had EBITDA of US$190.7 million and US$195.4million for the years ended December 31, 2014 and 2015, respectively, and US$99.8 million forthe six-month period ended June 30, 2016. In addition, our total comprehensive income wasUS$81.9 million for the year ended December 31, 2014, US$79.3 million for the year endedDecember 31, 2015 and US$106.3 million for the six-month period ended June 30, 2016.

Our Competitive Strengths

Uniquely Positioned as the Sole Independent Power Producer Serving the Cikarang IndustrialEstates

We are the sole private supplier of electricity to the tenants located in five neighboringindustrial estates in the Cikarang area in the Bekasi Regency with a right of first refusal toprovide electricity supply before any potential competitors. In our designated business area, we

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have achieved a high degree of service penetration, providing electricity to approximately 95% ofthe tenants located in these industrial estates in 2014, 96% in 2015 and 96% for the six monthsended June 30, 2016, supplying approximately 88% of their total electricity consumption in both2014 and 2015 and 89% for the six months ended June 30, 2016.

The Cikarang industrial estates constitute some of the most significant industrial bases ingreater Jakarta and include the Cikarang Industrial Estate (“Jababeka”), MM-2100 Industrial Town(“MM-2100”), East Jakarta Industrial Park (“EJIP”), Lippo Cikarang (“Lippo”), and BekasiInternational Industrial Estate (“Hyundai”). These industrial estates are self-contained andprivately-operated commercial developments managed by affiliates of multinational corporationssuch as Marubeni Corporation, Hyundai Corporation and Sumitomo Corporation. The tenants inthese estates serve both the domestic Indonesian market as well as the export markets. The estatesoffer a cost effective and efficient means for companies to establish industrial bases in the greaterJakarta area because of its access to skilled labor, critical infrastructure and full range of othervalue added services and supporting industries.

In addition, our gas-fired power plants have been declared a Vital National Object (“VNO”),allowing us special government assistance in the form of police and armed forces protection in theevent of security threats as well as preferential allocation of natural gas supply.

Strong and Diversified Industrial Estate Customer Base Coupled with an Attractive ElectricitySupply Contract with PLN

We serve a diversified customer base of 2,223 local and multinational corporations across abroad range of industries and geographical markets as of June 30, 2016. For the year endedDecember 31, 2015, over 55.4% of our total kVA capacity was provided to industrial estatecustomers with no single customer representing more than 1.5% and no single industryrepresenting more than 31.9%. For the six-month period ended June 30, 2016, over 56.7% of ourtotal kVA capacity was provided to industrial estate customers with no single customerrepresenting more than 1.5% and no single industry representing more than 31.6%.The majority ofour customers consists of companies engaged in light and medium industry sectors, such asautomobiles, electronics, plastics, food and chemicals, which are generally less sensitive tovariations in their electricity cost. As a result of our reliable supply of electricity over the years,many of our customers have been our offtakers on a long-term basis. As of June 30, 2016, 65.2%of our customers have been with us for more than ten years, 14.3% for five to ten years, and20.5% for less than five years. Our customers have exhibited low churn rates with low proportionsof bad debts, where bad debt expense against net revenue from industrial estate customers rates(calculated by dividing the bad debt expense for the period by the net revenue from industrialestate customers for the period) was 0.24%, 0.12% and 0.27% for the years ended December 31,2013, 2014 and 2015, respectively, and 0.07% for the six-month period ended June 30, 2016. Wehave also consistently added new customers, adding 156, 137 and 88 new customers for the yearsended December 31, 2013, 2014 and 2015, respectively, and 38 for the six-month period endedJune 30, 2016. We have, for more than 20 years, been the preferred primary power supplier to newcustomers in our area, whilst PLN has been supplying electricity to a limited number of legacycustomers. We believe that the attractiveness of the Cikarang industrial estates due to theirproximity to Jakarta and strong transportation links, together with the diverse mix of tenantslocated in the industrial estates, provides us with a balanced sector exposure, a widely distributedcustomer base and balanced and steady growth prospects.

In addition to our industrial estates customer base, our EPSPA with PLN currently entitles usto sell to PLN a monthly volume of electricity based on PLN’s annual capacity commitment of300 MW, based on a commitment by PLN to purchase 150 MW annually until June 1, 2031 and acommitment to purchase an additional 150 MW until January 26, 2019. For PLN, these contractshelp alleviate ongoing capacity shortages in the area by leveraging a reliable electricity sourceclose to Jakarta and thereby securing a cost-efficient supply of electricity. From our perspective,this take-or-pay arrangement provides us with a reliable source of demand and the flexibility toimprove our blended heat rates and operating efficiency through enhanced capacity utilization. For

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example, because our contractual supply obligations to PLN are determined on an annual basis, wecan increase our dispatch to PLN in periods of low energy demand from our industrial estatecustomers, allowing us to optimize the utilization of our facilities. As a result, we believe that thisarrangement will continue to be mutually beneficial beyond 2019.

Longest Operating Private Supplier of Electricity in Indonesia with Strong OperationalCapabilities and a Proven Greenfield Development, Construction, Operation, and MaintenanceTrack Record

We are the longest operating private supplier of electricity in Indonesia, with a proven trackrecord of successful completion of design, engineering, procurement, construction, installation,testing, commissioning, operation and maintenance and repowering of our gas-fired combinedcycle power stations. We have steadily increased our installed generation capacity from 60 MWwhen our operations began in 1993 to 864 MW as of June 30, 2016. In addition, we are currentlyconstructing a coal-fired power plant, which will increase our total capacity to 1,144MW andoperate as a base load facility and enable us to utilize coal as a cheaper fuel source compared tonatural gas. The construction of the coal-fired power plant is on track and on budget with acompletion rate of 82.4% as of June 30, 2016. We have not outsourced the construction of ourplants to turnkey providers and have adopted instead a multi contract approach, coordinating anddirectly overseeing all the different contractors involved in the construction of our plants. This hasenabled us to have a deeper understanding and control over our operations and accumulatesignificant expertise over time. We maintain a long-term contract with GE for the maintenance ofour gas turbines and other equipment parts. Our strong track record in greenfield development andexpansion can be attributed to our experience in commissioning and operating advanced equipmentand technologies in our power plants, supported by the expertise of our project team members andour strong relationships with world class equipment suppliers such as GE, Siemens, Schneider,Mitsubishi, ABB Sakti Industri and Doosan.

Throughout the years, we have continually sought to improve the efficiency of our powerplants. In 2011, we repowered by way of converting previously simple-cycle turbines intocombined-cycle turbines. This improvement resulted in a decrease in net heat rate of 17.6%between 2010 and the six months ended June 30, 2016. In addition, our network distribution lossesimproved from 0.71% in 2010 to 0.62% in 2015 and 0.58% for the six months ended June 30,2016, while our net capacity factor improved from 66.6% in 2010 to 86.4% in 2015 and 88.1% forthe six months ended June 30, 2016. Between 2010 and the six months ended June 30, 2016, ourpower plant achieved an average availability factor of 95.4%, benefiting in part from themodularization of our generating units, which enabled us to operate our first gas-fired power plantwithout interruption even during a malfunction in an individual unit of the power plant.

Our strong efficiency track record is further complemented by a culture of commitment tohealth, safety, and environmental excellence as well as the status of our plants as VNOs. SinceOctober 2000, our facilities have been certified to ISO standards and last year our projectsreceived the OHSAS 18001 certification, demonstrating our long-standing commitment to qualitycontrol and minimizing our impact on the environment and climate.

Robust Cash Flows to Support Operations and to Service and Repay Debt

We have generated steady cash flows to support our capital expenditure and working capitalrequirements while at the same time servicing and repaying debt on a timely basis. Our EBITDAwas US$155.9 million, US$190.7 million and US$195.4 million for the years ended December 31,2013, 2014 and 2015, respectively and US$99.8 million for the six months ended June 30, 2016.We believe our steady cash flow generation capability is attributable to a number of sustainableand long-term factors, including stable and diversified customer demand, a robust tariff structure,reliable and long-term fuel supply, world class generation facilities and an experienced and provenmanagement team.

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We have an attractive tariff structure with our industrial estate customers that allows us topass through foreign exchange and fuel costs. In particular, our tariffs for both industrial estatecustomers and PLN include automatic adjustment provisions for currency fluctuations.Accordingly, our tariffs charged to industrial estate customers and PLN remain substantiallyconstant in terms of U.S. Dollars and are unaffected by the fluctuations in the Rupiah to U.S.Dollar exchange rate. Our tariffs for both industrial estate customers and PLN also includeautomatic adjustment provisions for fuel price fluctuations, allowing us to pass on fuel priceincreases to our customers.

We also have a reliable and diversified supply of natural gas from our principal suppliers,which include PT Pertamina EP (“Pertamina”) and PT Perusahaan Gas Negara (Persero) Tbk(“PGN”). Our fuel supply contracts are long-term agreements, with an average duration of 16years, and provide us with the flexibility to vary the procurement volume to match the volume ofgas needed to meet the fluctuations in electricity demand from our customers. Furthermore, in theunlikely event that natural gas is unavailable, our facilities are capable of switching to distillatefuel as a secondary source, mitigating fuel supply risks. In the future, we expect our newcoal-fired power plant to benefit from a similarly secure fuel supply environment. Coal is readilyavailable in the market in the short- to medium-term and we do not foresee any issues in securingreliable medium-term coal at competitive prices. For instance, we have recently secured a 5-yearcoal sourcing agreement from PT Antang Gunung Meratus, which will commence once ourcoal-fired power plant comes online. Further, we also benefit from added security on our facilitiesdue to our existing plants’ VNO status.

As of June 30, 2016, over 56.7% of our total kVA capacity was provided to industrial estatecustomers was to multinational corporations operating across a broad range of industries andgeographical markets. We believe that our customer base should reduce the exposure of our cashflows to industry, regional or country-specific risks. In addition, tariffs for both industrial estatecustomers and PLN include automatic adjustment provisions in the event of currency fluctuations.Accordingly, our earnings from tariffs charged to industrial estate customers and PLN remainsubstantially constant in terms of U.S. Dollars regardless of the Rupiah-U.S. Dollar exchange rate.Our tariffs for both industrial estate customers and PLN also include automatic adjustmentprovisions to reflect increases in natural gas prices, allowing such increases in natural gas costs tobe passed on to customers.

Well-Positioned to Capitalize on Strong Growth in Electricity Demand from the IndustrialEstates and Elsewhere in Indonesia

We believe that electricity consumption in the Cikarang industrial estates we serve willcontinue to increase, as existing customers expand their operations and incoming tenants purchaseand develop available-for-sale plots and the industrial estates expand. We believe we arewell-positioned to capitalize on future growth in the Cikarang industrial estates since only 1,825ha of the 3,318 ha available for industrial development in the Cikarang estates area have access toelectricity as of June 30, 2016. As part of our expansion strategy, we have already commissionedour second gas-fired power plant in the MM-2100 industrial estate and we are currentlyconstructing a coal-fired power plant with a total capacity of 280 MW at our Babelan site inBekasi.

Electricity demand from our industrial estate customers increased from 6,196 MWh per dayin 2010 to 7,514 MWh per day in 2015 and 7,951 MWh per day for the six months ended June 30,2016. Our supply of electricity to industrial estate customers has increased from an average of 496kVA per hectare in 2010 to 540 kVA per hectare in 2015 and 546 kVA per hectare for the sixmonths ended June 30, 2016. Our net capacity factor has also increased from 66.6% in 2010 to86.4% in 2015 and to 88.1% for the six months ended June 30, 2016,, driven by increased demandfor electricity from our customers. We believe we are well positioned to continue to benefit fromthe strong demand from our industrial estate customers as we are the sole private enterprise with alicense to supply electricity to tenants located in five neighboring industrial estates in theCikarang area, which is only 45 kilometers from Jakarta. Our current license is valid until 2036.

5

We believe that the power generation industry in Indonesia has significant growth potential,which will be driven not only by economic expansion, but also the current low per capitaelectricity consumption and electrification rate in Indonesia. We believe that the strategic locationof our power plants near the major demand center of Jakarta with strong transportation links andour access to significant unused land in our sites available for capacity expansion will allow us tobenefit from additional growth opportunities and continue to position us as an attractive electricityprovider to PLN and other customers.

Strong Management Team with Extensive Experience and a Proven Track Record ofManaging the Longest Operating Private Supplier of Electricity in Indonesia

Members of our management team have extensive experience in the power generation sectorand a proven track record of successfully establishing, operating, maintaining and expandingpower plants. Our senior management team cumulatively has over 240 years of related experiencein the power industry and over 121 years of service with us. In addition, members of ourmanagement team possess complementary skills and have extensive experience and knowledge ofthe local power industry. In particular, our project team members, who managed the constructionof our second gas-fired power plant and are managing the construction of our coal-fired powerplant, have successfully built our facility from a greenfield project in 1993 into our currentfacility with an installed generation capacity of 864 MW.

Business Strategy

Continue to Provide Reliable Electrical Supply to Customers in our Business Area

We will continue to focus on providing reliable electricity supply to our industrial estatecustomers. We currently offer our industrial estate customers highly stable and reliable electricitysupply with a significant back-up generation capacity. Our back-up electricity distribution networkfor our industrial estate customers also ensures maximum reliability of delivery. In our recentoperating history, we have experienced only one involuntary outage, the shutdown in 2009 of oneof our gas turbines that lasted seven and a half months, and have not experienced any involuntaryoutages since then. From 2010 through the six months ended June 30, 2016, the availability factorfor our gas turbines averaged 95.4%. We intend to continue to maintain and increase our reservecapacity by investing in new technologies and generation facilities in order to sustain and improveour electricity supply reliability.

Further, the construction of our new coal-fired power plant will allow us to reduce ourcurrent dependence on Pertamina and PGN for gas supply. By diversifying our fuel source, wewill be able to reduce our exposure to shortages of any particular fuel source, thereby improvingthe reliability of our electricity supply. The coal-fired power plant also has the potential tosignificantly reduce our cost of generation and allow us to benefit from Indonesia’s abundant andreliable thermal coal supply. Because the coal-fired power plant is expected to run as a base loadfacility, we will be able to operate the gas-fired power plants as intermediate or peaking powerfacilities, which is expected to result in an increase in the thermal efficiency of our facilities. Thiswill improve our operating profile as well as help to minimize our impact on the environment andclimate.

We believe that we have achieved high customer satisfaction due to the reliability of ouroperations and dispatch, as evidenced by our high service penetration and low incidence ofcustomer loss. We believe that our focus on providing a reliable supply of electricity will allow usto attract and retain new and existing industrial estate customers.

Improve Operating Margins by Thermal Efficiency, Fuel Diversification and Economies ofScale

We expect natural gas costs, which are the single largest component of our cost base, todecrease as a percentage of sales over time as a result of increased average plant loading,

6

improved thermal efficiency and our shift to generating a significant portion of our electricity withcoal. We have continuously upgraded our facilities in order to enhance our operating efficiency,improving our average monthly blended heat rate from 9,989 Btu/kWh for the year endedDecember 31, 2010 to 8,274 Btu/kWh for the year ended December 31, 2015 and 8,230 Btu/kWhfor the six months ended June 30, 2016. After the commissioning of our coal-fired power plant,we expect to further enhance our operating efficiency by transitioning our higher cost gas-firedunits into peaking power plants while using our coal-fired power plant as the base load facility.We expect this transition to substantially lower overall electricity generation unit cost as weutilize coal as a cheaper fuel source alternative to natural gas. In addition, as we continue toincrease our installed generation capacity, we expect to continue to benefit from greater economiesof scale associated with lower average operating expenses from the sharing of spare parts,maintenance and labor among our power plants.

Pursue Capacity Expansion to Meet Increasing Demand from Industrial Estate Customers andPLN

Our second gas-fired power plant in the MM-2100 industrial estate was commissioned in July2015, increasing our installed generation capacity to 864 MW. The commissioning and operationof the two units of our new coal-fired power plant currently under construction are scheduled tobe completed in the fourth quarter of 2016, which will further increase our installed generationcapacity to 1,144 MW to meet the rising peak electricity demand from the industrial estates. Webelieve that demand from industrial estate customers will grow as new and existing customersexpand their operations. We also expect additional demand for electricity as the industrial estatesare further developed and more land in the industrial estates is sold to both new and existingtenants.

Moreover, we believe that we are one of the few private electricity suppliers that canefficiently satisfy PLN’s power needs in view of our proximity to the major demand center ofJakarta and the availability of substantial parcels of unused land for expansion. Transmission ofpower from PLN’s power generation facilities in eastern Java to the Jakarta area is constrained bythe increasingly congested Java-Bali power grid, which our facilities are able to bypass due to ourlocation. We believe that PLN will continue to increase its demand for electricity from us as weexpect that PLN will continue to experience shortfalls in its electricity supply for the foreseeablefuture, which will support further increases in our installed generation capacity. As an integratedIUKU license holder, we are able to engage in bilateral negotiations with PLN without goingthrough a competitive tender process.

The Indonesian power generation industry is growing and the Government plans to increasegeneration capacity by 35 GW over the next five years. To meet increasing demand for power inIndonesia, we plan to selectively pursue additional investments in new or existing powergeneration assets to leverage our unique expertise and industry relationships, in particular ourmore than 20-year relationship with GE. For example, on October 26, 2015, we and GE Capitalentered into an MoU related to the development of planned 1,100 to 1,400 MW gas-fired combinecycle electricity generation facility in Indonesia utilizing GE’s Frame 9HA gas turbine model. Thefacility is intended to be built on land currently owned by us and located in the MM-2100industrial estate. The MoU sets forth the intended framework for the development of the newgas-fired electricity generation facility to the mutual benefit of both parties, and we believe thatthis arrangement will help to further strengthen our relationship with GE. Furthermore, we believewe are well-positioned to win bids for potential IPP projects that PLN may put out for tender dueto our strong operational track record with our existing power projects, our highly capable andexperienced management team and our strong existing relationship with PLN.

Corporate Information

The Issuer was incorporated as a private company with limited liability under the laws ofThe Netherlands on June 11, 2007. The Issuer has its corporate seat in Amsterdam, The

7

Netherlands. The registered office of the Issuer is located at De entree 99-197, 1101 HE

Amsterdam Zuidoost, The Netherlands, and its telephone number at that address is

+31-20-5554466. The Issuer is a wholly-owned subsidiary of Cikarang Listrindo. The Issuer has

been registered with the trade register of the Chamber of Commerce under No. 34276492.

Signal Capital B.V. (“Signal Capital”) was incorporated as a private company with limited

liability under the laws of The Netherlands on June 12, 2007. Signal Capital is a wholly-owned

subsidiary of the Issuer and has its corporate seat in Amsterdam, The Netherlands. The registered

office of Signal Capital is located at De entree 99-197, 1101 HE Amsterdam Zuidoost, The

Netherlands, and its telephone number at that address is +31-20-5554466. Signal Capital is a

wholly-owned subsidiary of the Issuer. Signal Capital has been registered with the trade register of

the Chamber of Commerce under No. 34276561.

Cikarang Listrindo is a limited liability company established under the laws of the Republic

of Indonesia on July 28, 1990 as a domestic capital investment company. Cikarang Listrindo’s

shares were listed for trading on the Indonesia Stock Exchange on June 14, 2016. Cikarang

Listrindo’s registered office is located at World Trade Centre 1, 17th Floor, Jl. Jend. Sudirman

Kav 29-31, Jakarta 12920, Indonesia, and its telephone number is +6221-522-8122.

8

SUMMARY OF THE OFFERING

The following is a brief summary of the terms of this offering and is qualified in its entiretyby the remainder of this offering memorandum. For a detailed description of the Notes, see thesection entitled “Description of the Notes.” The terms and conditions of the Notes prevail to theextent of any inconsistency with the summary set forth in this section. This Summary is notintended to be complete and does not contain all of the information that is important to aninvestor. Phrases used in this summary and not otherwise defined shall have the meanings given tothem in “Description of the Notes.”

Issuer ............................................. Listrindo Capital B.V. (the “Issuer”).

Parent Guarantor ............................ PT Cikarang Listrindo Tbk.

Notes Offered................................. US$550,000,000 aggregate principal amount of 4.95% SeniorNotes due 2026 (the “Notes”).

Issue Price ..................................... 100.0% of the principal amount of the Notes.

Maturity Date ............................... September 14, 2026

Interest ........................................... The Notes will bear interest from and including September 13,2016 at the rate of 4.95% per annum, payable semi-annually inarrears.

Interest Payment Dates ................... March 14 and September 14 of each year, commencing March14, 2017.

Ranking of the Notes ..................... The Notes will:

• be general, unsecured obligations of the Issuer;

• be senior in right of payment to any existing and futureobligations of the Issuer expressly subordinated in rightof payment to the Notes;

• rank at least pari passu in right of payment with allunsubordinated Indebtedness of the Issuer (subject toany priority rights of such unsubordinated Indebtednesspursuant to applicable law); and

• be guaranteed by the Parent Guarantor on anunsubordinated basis.

Parent Guarantee ............................ The Parent Guarantor will guarantee the due and punctualpayment of the principal of, premium, if any, and interest on,and all other amounts payable under, the Notes.

The Parent Guarantee may be released in certain circumstances.See “Description of the Notes—The ParentGuarantee—Release of the Parent Guarantee.”

Ranking of the Parent Guarantee .... The Parent Guarantee will:

• be general obligations of the Parent Guarantor;

• be effectively subordinated to secured obligations of theParent Guarantor, to the extent of the value of theassets serving as security therefor;

9

• be senior in right of payment to all future obligationsof the Parent Guarantor expressly subordinated in rightof payment to the Parent Guarantee; and

• rank at least pari passu with all other unsecured,unsubordinated Indebtedness of the Parent Guarantor(subject to any priority rights of such unsecured,unsubordinated Indebtedness pursuant to applicablelaw).

Use of Proceeds ............................. The proceeds from this offering, before deducting the InitialPurchasers’ discount and other expenses payable in connectionwith this offering, will be US$550.0 million. The Issuer plansto use a substantial portion of the proceeds from this offeringof Notes (net of the Initial Purchasers’ discount and otherexpenses payable in connection with this offering) to redeem infull the outstanding aggregate principal amount of the 6.9500%senior notes due 2019 (the “2019 Notes”) issued by the Issuerand guaranteed by the Parent Guarantor pursuant to anindenture dated February 21, 2012 (the “2019 Indenture”)among the Issuer, the Parent Guarantor and the Trustee and payfor related premium, fees and expenses. As of the date of thisoffering memorandum, there was US$500 million aggregateprincipal amount of 2019 Notes outstanding. The Issuer willcontribute the remaining net proceeds of the offering of theNotes to Signal Capital, by way of share contribution on newand/or existing shares of, and/or a loan to, Signal Capital,which will then on-lend the proceeds of such contributionand/or loan to the Parent Guarantor pursuant to anintercompany loan (the “Intercompany Loan”). TheIntercompany Loan will be subordinated in right of payment tothe Parent Guarantee. The Parent Guarantor plans to use anysuch remaining net proceeds for working capital.

Optional Redemption ...................... At any time on or after September 14, 2021, the Issuer mayredeem the Notes, in whole or in part, at the redemption pricesset forth under “Description of the Notes—OptionalRedemption,” plus accrued and unpaid interest, if any, to theredemption date. At any time and from time to time prior toSeptember 14, 2021, the Issuer may at its option redeem theNotes, in whole or in part, at a redemption price equal to 100%of their principal amount plus the Applicable Premium as of,and accrued and unpaid interest, if any, to (but not including),the redemption date. In addition, at any time prior to September14, 2020, the Issuer may redeem up to 35% of the aggregateprincipal amount of the Notes with the proceeds from certainequity offerings at a redemption price of 104.95% of theprincipal amount of the Notes, plus accrued and unpaid interest,if any, to (but not including) the redemption date; provided thatat least 65% of the aggregate principal amount of the Notesoriginally issued on the Original Issue Date remainsoutstanding after each such redemption and any suchredemption takes place within 60 days of the closing of suchequity offering. Notice of any redemption upon any equityoffering may be given prior to the completion of such equityoffering in connection thereof, and any such notice ofredemption may, at the Issuer’s discretion be conditioned on thecompletion of such equity offering.

10

Repurchase of Notes upon aChange of Control TriggeringEvent ..........................................

Not later than 30 days following a Change of ControlTriggering Event, the Issuer or the Parent Guarantor will makean offer to repurchase all outstanding Notes at a purchase priceequal to 101% of their principal amount plus accrued andunpaid interest, if any, to (but not including) the Offer toPurchase Payment Date.

Withholding Tax; AdditionalAmounts .....................................

Payments with respect to the Notes, the Parent Guarantee andany future Subsidiary Guarantees will be made withoutwithholding or deduction for taxes imposed by the jurisdictionsin which the Issuer, the Parent Guarantor or any futureSubsidiary Guarantors are incorporated or resident for taxpurposes, or through which payment is made except as requiredby law. Where such withholding or deduction is required bylaw, the Issuer or the applicable Guarantor will make suchdeduction or withholding and will, subject to certainexceptions, pay such additional amounts as will result inreceipt by the Holder of such amounts as would have beenreceived by such Holder had no such withholding or deductionbeen required. See “Description of the Notes—AdditionalAmounts.”

Redemption for Taxation Reasons . Subject to certain exceptions and as more fully describedherein, the Issuer may redeem the Notes, in whole but not inpart, at a redemption price equal to 100% of the principalamount thereof, together with accrued and unpaid interest, ifany, to the date fixed by the Issuer for redemption, if, as a resultof certain changes in tax law, the Issuer or the Parent Guarantor(as the case may be) would be required to pay certain additionalamounts; provided that where the additional amounts arepayable as a result of changes affecting Indonesian taxes, theNotes may be redeemed only in the event that the withholdingtax rate exceeds 20%.

Covenants ...................................... The Indenture will limit the ability of the Issuer, the ParentGuarantor and the Restricted Subsidiaries to, among otherthings:

• incur additional indebtedness and issue preferred stock;make investment or other specified RestrictedPayments; declare dividends on Capital Stock orpurchase or redeem Capital Stock;

• enter into agreements that restrict the RestrictedSubsidiaries’ ability to pay dividends and transfer assetsor make intercompany loans;

• enter into transactions with equity holders or affiliates;

• create any lien;

• sell assets;

• engage in different business activities; or

• effect a consolidation or merger.

11

These covenants are subject to a number of importantqualifications and exceptions described in “Description of theNotes—Certain covenants.”

Selling and Transfer Restrictions .... The Notes will not be registered under the Securities Act orunder any state securities law of the United States and will besubject to customary restrictions on transfer and resale. See“Transfer Restrictions.”

Form, Denomination andRegistration ................................

The Notes will be issued only in fully registered form, withoutcoupons, in denominations of US$200,000 and integralmultiples of US$1,000 in excess thereof and will be initiallyrepresented by one or more Global Note registered in the nameof a nominee of DTC.

Book-Entry Only ............................ The Notes will be issued in book-entry form through thefacilities of DTC for the accounts of its participants, includingEuroclear and Clearstream. For a description of certain factorsrelating to clearance and settlement, see “Description of theNotes—Book-Entry; Delivery and Form.”

Delivery of the Notes ..................... The Issuer expects to make delivery of the Notes, againstpayment in same-day funds, on or about September 13, 2016,which the Issuer expects will be the third business dayfollowing the date of this offering memorandum, referred to as“T+3.” See “Plan of Distribution.”

Trustee ........................................... The Bank of New York Mellon.

Paying and Transfer Agent andRegistrar .....................................

The Bank of New York Mellon.

Rule 144A Global Note .................. CUSIP Number: 536576 AD3 ISIN Number: US536576AD36

Regulation S Global Note............... CUSIP Number: N5276Y AD8 ISIN Number: USN5276YAD87

Listing ........................................... Approval-in-principle has been received for the listing andquotation of the Notes on the SGX-ST. The Notes will be tradedon the SGX-ST in a minimum board lot size of US$200,000 forso long as the Notes are listed on the SGX-ST.

Governing Law............................... The Notes and the Indenture will be governed by and will beconstrued in accordance with the laws of the State of New York.

Risk Factors ................................... For a discussion of certain factors that should be considered inevaluating an investment in the Notes, see “Risk Factors.”

Ratings........................................... The Notes are expected to be rated “BB” by S&P and “Ba2” byMoody’s.

12

SUMMARY FINANCIAL INFORMATION AND OTHER DATA

You should read the summary financial and other data presented below in conjunction with

our consolidated financial statements, related notes to the consolidated financial statements, and

other financial information, contained in this offering memorandum. You should also read the

section of this offering memorandum entitled “Management’s Discussion and Analysis of Financial

Condition and Results of Operations.”

The summary consolidated financial information of the Parent Guarantor as of December 31,

2013, 2014 and 2015 and for the years then ended, presented below, has been derived from our

audited consolidated financial statements as of December 31, 2013, 2014 and 2015 and for the

years then ended, included elsewhere in this offering memorandum. Our summary consolidated

financial information as of June 30, 2016 and for the six-month periods ended June 30, 2016 and

2015, presented below, has been derived from our unaudited interim consolidated financial

statements as of June 30, 2016 and for the six-month periods ended June 30, 2016 and 2015,

included elsewhere in this offering memorandum.

Our audited consolidated financial statements as of December 31, 2013, 2014 and 2015 and

for the years then ended have been audited by PSS, independent auditors, in accordance with

Standards on Auditing established by the IICPA, as stated in their audit report appearing elsewhere

in this offering memorandum. Our unaudited interim consolidated financial statements as of June

30, 2016 and for the six-month periods ended June 30, 2016 and 2015, have been reviewed by

PSS, independent auditors, in accordance with SRE 2410, established by the IICPA, as stated in

their review report appearing elsewhere in this offering memorandum. A review is substantially

less in scope than an audit conducted in accordance with Standards on Auditing established by

IICPA and therefore PSS do not express an audit opinion on such financial information.

Our audited and unaudited consolidated financial statements, which are prepared in

accordance with Indonesian FAS and presented in U.S. Dollars, are not intended to present our

consolidated financial position, financial performance, or cash flows in accordance with

accounting principles generally accepted in countries and jurisdictions other than those in

Indonesia. Indonesian FAS differ in certain significant respects from U.S. GAAP. In making an

investment decision, you should rely upon your own examination of us, the terms of the Offering

and the financial information contained in this offering memorandum. You should consult your

own professional advisors for an understanding of the differences between Indonesian FAS and

U.S. GAAP, and how such differences could affect the financial information contained in this

offering memorandum. See “Summary of Significant Differences between Indonesian FAS and U.S.

GAAP” included elsewhere in this offering memorandum for a description of summary of

significant differences between Indonesian FAS and U.S. GAAP.

13

Consolidated Statements of Profit or Loss and Other Comprehensive Income

For the year ended December 31,

For the six-month period

ended June 30

2013(1) 2014(1) 2015 2015 2016

(US$ thousands) (unaudited)

Net Sales

Industrial estates ....................................... 357,613.3 383,466.6 381,810.6 186,395.5 200,181.3

PT Perusahaan Listrik Negara (Persero)

(PLN) ................................................... 144,163.9 161,241.6 166,084.4 84,184.7 74,486.9

Total Net Sales ........................................ 501,777.2 544,708.2 547,895.0 270,580.3 274,668.2

Cost of Sales ............................................ (354,081.1) (359,245.5) (362,448.5) (180,553.0) (181,603.7)

Gross Profit ............................................. 147,696.1 185,462.7 185,446.5 90,027.3 93,064.4

General and administrative expenses ......... (29,268.6) (38,084.0) (37,998.8) (18,084.3) (21,543.9)

Selling expenses ....................................... (4,281.7) (4,300.1) (4,225.1) (1,948.1) (2,202.4)

Other income ............................................ 956.3 1,049.0 475.8 455.7 274.8

Other expenses.......................................... (24,624.8) (6,957.5) (12,126.9) (7,639.2) (1,022.6)

Profit from Operations Before Income

Tax and Finance Costs ........................ 90,477.4 137,170.1 131,571.5 62,811.4 68,570.3

Finance costs ............................................ (33,831.8) (29,496.7) (24,841.6) (9,823.4) (8,433.9)

Interest income ......................................... 7,388.8 5,790.0 1,901.4 1,261.7 532.6

Final tax on interest income...................... (1,477.8) (1,158.0) (380.3) (252.3) (106.5)

Profit Before Income Tax ........................ 62,556.7 112,305.4 108,251.0 53,997.4 60,562.5

Income Tax Benefit (Expense)

Current ..................................................... (4,867.5) (29,583.2) (24,834.7) (9,865.0) (17,523.3)

Deferred ................................................... (14,520.8) 1,687.6 (3,405.7) (2,050.0) 71,124.2

Final tax on revaluation of property, plant

and equipment ...................................... — — — — (7,646.8)

Income Tax Benefit (Expense) ................. (19,388.4) (27,895.6) (28,240.4) (11,915.0) 45,954.1

Profit for the Period ............................... 43,168.3 84,409.8 80,010.6 42,082.4 106,516.6

Other Comprehensive Income (Loss)

Item that may be reclassified to profit or

loss:

Changes in fair value of available-for-sale

investments ........................................... 417.8 (620.1) 14.8 14.8 7.3

Income tax relating to changes in fair

value of available-for-sale investments . (122.2) 155.0 (3.7) (3.7) (1.8)

295.6 (465.1) 11.1 11.1 5.5

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For the year ended December 31,

For the six-month period

ended June 30

2013(1) 2014(1) 2015 2015 2016

(US$ thousands) (unaudited)

Items that will not be reclassified to

profit or loss:

Remeasurement gain (loss) on estimated

liability for employee benefits .............. 513.0 (2,711.1) (983.6) 915.2 (320.8)

Income tax relating to remeasurement

gain (loss) on estimated liability for

employee benefits ................................. (128.2) 677.8 245.9 (228.8) 80.2

384.7 (2,033.3) (737.7) 686.4 (240.6)

Total Other Comprehensive Income

(Loss) for the Period, Net of Income

Tax ....................................................... 680.4 (2,498.4) (726.6) 697.5 (235.1)

Total Comprehensive Income for the

Period .................................................. 43,848.7 81,911.4 79,284.0 42,779.9 106,281.5

Note

(1) As restated. See “Presentation of Financial Information.”

15

Consolidated Statements of Financial Position

As of December 31, As of June 30,

2013(1) 2014(1) 2015 2016

(US$ thousands) (unaudited)

Assets

Current Assets

Cash and cash equivalents ............................................... 130,743.2 95,286.9 57,626.3 226,282.2

Trade receivables - net .................................................... 58,591.7 60,540.7 70,920.1 66,969.0

Other receivables............................................................. 464.2 177.7 88.7 112.6

Inventories - net .............................................................. 25,165.9 25,528.1 23,769.1 28,772.0

Advances ......................................................................... 10,334.7 11,548.7 2,804.1 1,239.2

Prepaid tax ...................................................................... — — 7,625.8 —

Prepaid expenses ............................................................. 1,105.9 1,553.2 2,339.8 1,901.5

Investments ..................................................................... 13,842.3 1,985.2 — 310.8

Restricted cash in banks .................................................. 25,090.6 16,293.0 151.8 151.7

Claims for tax refund ...................................................... — 9,603.7 — —

Total Current Assets ...................................................... 265,338.5 222,517.1 165,325.7 325,739.0

Non-Current Assets

Electrical equipment not used in operations ..................... 258.9 236.9 436.5 355.5

Advances for purchase of property, plant and equipment

Third Parties ............................................................... 59,384.8 54,966.7 47,113.6 52,173.4

Related Party .............................................................. 2,078.5 6,035.5 9,992.5 10,991.8

Claims for tax refund ...................................................... 9,801.5 — 24,657.0 25,807.5

Loans to employees ......................................................... 64.5 62.8 70.7 116.2

Property, plant and equipment - net ................................. 489,950.2 614,438.9 754,328.7 797,830.7

Net deferred tax assets .................................................... 6,385.5 3,780.8 2,711.8 49,007.1

Other non-current assets .................................................. 231.8 198.1 1,083.0 259.3

Total Non-Current Assets .............................................. 568,155.6 679,719.6 840,393.8 936,541.5

Total Assets .................................................................... 833,494.1 902,236.8 1,005,719.5 1,262,280.5

Liabilities and Equity

Liabilities

Current Liabilities

Trade payables

Third Parties ............................................................... 20,255.2 25,765.7 38,156.1 36,445.7

Related Party .............................................................. 495.5 457.0 11.0 460.7

Other payables ................................................................ 1,418.1 6,734.8 14,575.5 16,864.9

Taxes payable .................................................................. 5,772.3 17,516.5 17,517.9 10,732.6

Accrued expenses ............................................................ 13,871.1 13,878.2 14,463.2 19,008.9

Total Current Liabilities ................................................ 41,812.2 64,352.2 84,723.8 83,512.8

Non-Current Liabilities ................................................

Other payable - net of current maturities ......................... — — 2,960.6 2,060.5

Net deferred tax liabilities ............................................... 27,937.9 22,812.8 24,907.2 —

Customers’ deposits ......................................................... 32,923.1 37,103.2 37,931.5 40,503.0

Notes payable .................................................................. 493,036.7 494,196.2 495,442.8 496,100.9

Estimated liability for employee benefits ......................... 14,765.1 20,925.0 22,622.3 23,725.6

Total Non-Current Liabilities ........................................ 568,662.7 575,037.2 583,864.3 562,390.0

Total Liabilities .............................................................. 610,474.9 639,389.4 668,588.1 645,902.8

16

As of December 31, As of June 30,

2013(1) 2014(1) 2015 2016

(US$ thousands) (unaudited)

Equity

Share capital - Rp200 par value per share as of June 30,

2016 and December 31, 2015 and Rp1,000,000 par

value per share as of December 31, 2014 and 2013 ....

Authorized - 57,913,760,000 shares as of June 30, 2016

and December 31, 2015 and 1,068,000 shares as of

December 31, 2014 and 2013 .....................................

Issued and fully paid - 16,087,156,000 shares as of June

30, 2016, 14,478,440,000 shares as of December 31,

2015 and 1,068,000 shares as of December 31, 2014

and 2013 ..................................................................... 120,949.1 120,949.1 257,885.3 282,002.2

Additional paid-in capital ................................................ — — — 148,848.0

Changes in fair value of available-for-sale investments ... 454.0 (11.1) — 5.5

Retained earnings ............................................................ 101,616.1 141,909.4 79,246.0 185,522.1

Total Equity ................................................................... 223,019.1 262,847.4 337,131.3 616,377.7

Total Liabilities and Equity ........................................... 833,494.1 902,236.8 1,005,719.5 1,262,280.5

Note

(1) As restated. See “Presentation of Financial Information.”

Consolidated Statements of Cash Flows

For the year ended December 31,

For the six-month period

ended June 30,

2013(1) 2014(1) 2015 2015 2016

(US$ thousands) (unaudited)

Net cash provided by operating activities .. 68,520.8 162,430.6 147,033.5 66,934.1 63,864.8

Net cash used in investing activities ......... (167,156.9) (153,751.1) (175,251.2) (97,563.8) (69,650.5)

Net cash provided by (used in) financing

activities ............................................... (55,433.8) (42,083.2) (5,000.0) — 172,964.9

Net increase (decrease) in cash and cash

equivalents ........................................... (154,069.9) (33,403.7) (33,217.7) (30,629.7) 167,179.2

Effect of exchange rate changes on cash

and cash equivalents ............................. (19,588.4) (2,052.6) (4,442.8) (3,976.9) 1,476.7

Cash and cash equivalents at beginning of

period ................................................... 304,401.5 130,743.2 95,286.9 95,286.9 57,626.3

Cash and cash equivalents at end of

period ................................................... 130,743.2 95,286.9 57,626.3 60,680.2 226,282.2

Note

(1) As restated. See “Presentation of Financial Information.”

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Other Financial Data

As of or for the year ended December 31,

As of or for thetwelve monthsended June 30,

2013(1) 2014(1) 2015 2016

(US$ thousands) (unaudited)

Total Debt(3) ....................................................... 493,036.7 494,196.2 495,442.8 496,100.9

Net Debt(4)/EBITDA(2) ........................................ 2.32 2.09 2.24 1.35

Total Debt(3)/EBITDA(2) ...................................... 3.16 2.58 2.53 2.48

EBITDA(2)/Finance Cost(2)(5) ............................... 4.61 6.47 7.87 8.52

Total Debt(3)/Equity(6) ......................................... 2.21 1.88 1.47 0.80

For the year ended December 31,

For the

six-month

period ended

June 30,

2013(1) 2014(1) 2015 2016

(US$ thousands) (unaudited)

EBITDA(7) .......................................................... 155,927.9 190,718.8 195,447.9 99,811.7

Note(1) As restated. See “Presentation of Financial Information.”(2) Figures for the last twelve months (“LTM”) ended June 30, 2016 are based on an LTM EBITDA of US$200 million

(US$195 million for the year ended December 31, 2015 and US$95 million and US$100 million for the six-monthperiods ended June 30, 2015 and 2016, respectively), and LTM Finance Cost of US$23 million (US$25 million forthe year ended December 31, 2015 and US$10 million and US$8 million for the six-month periods ended June 30,2015 and 2016, respectively).

(3) Total Debt includes notes payable.(4) Net Debt is defined as Total Debt less cash and cash equivalents.(5) Finance Cost includes interest expense and other financing costs.(6) Equity includes share capital, additional paid-in capital, changes in fair value of available-for-sale investments and

retained earnings.(7) We define EBITDA as profit for the period before corporate income tax expense (benefit), depreciation expense,

consolidated interest expense and other non-cash items such as impairment loss on receivables, provision forinventory obsolescence, gain on sale of equipment, loss (gain) on sale of investments and foreign exchange loss forthe periods presented. You should not compare our EBITDA to EBITDA presented by other companies because notall companies use the same definition. The term “Consolidated EBITDA,” as used in the section titled “Descriptionof the Notes” summarizing certain provisions of the Indenture, is calculated differently from EBITDA and is not ameasurement of financial performance or liquidity under Indonesian GAAP or U.S. GAAP. The following tablereconciles our profit for each of the periods presented below to our EBITDA.

For the year ended December 31,For the six-month period

ended June 30,

2013(1) 2014(1) 2015 2015 2016

(US$ thousands) (unaudited)Profit for the period ........................ 43,168.3 84,409.8 80,010.6 42,082.4 106,516.6Adjustments:

Corporate income tax expense(benefit)(2) .............................. 19,423.2 27,759.1 28,243.3 11,913.0 (45,962.4)

Depreciation expense(3) ............... 42,400.9 41,422.1 41,194.7 20,595.9 19,875.5Consolidated interest expense(4) .. 36,446.8 36,266.9 36,677.7 18,237.9 18,529.2Other non-cash items:

Impairment loss onreceivables ......................... 866.6 472.8 1,045.4 890.7 141.0

Provision for inventoryobsolescence....................... 312.6 89.4 137.1 191.8 183.4

Gain on sale of equipment(5)... (58.4) (90.7) (160.1) (91.4) (2.3)Loss (gain) on sale of

investments(6) ..................... 256.0 (399.5) 20.4 4.8 —Foreign exchange loss(7) ......... 13,112.0 788.9 8,278.9 1,621.4 530.6

EBITDA ......................................... 155,927.9 190,718.8 195,447.9 95,446.3 99,811.7

EBITDA margin(8) ......................... 31.1% 35.0% 35.7% 35.3% 36.3%

Notes(1) As restated. See “Presentation of Financial Information.”(2) Corporate income tax expense (benefit) is calculated by adding or deducting the income tax pertaining to

non-recurring items (loss on sale of investments and gain on sale of equipment).(3) Depreciation of property, plant and equipment. Land rights are not depreciated under the prevailing Indonesian

FAS.

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(4) Consolidated interest expense consists of finance costs plus borrowing costs capitalized to property, plant andequipment.

(5) Gain on sale of equipment is calculated by excluding the income tax pertaining to gain on sale of equipment.

(6) Loss on sale of investments is calculated by excluding the income tax pertaining to loss on sale ofinvestments.

(7) Foreign exchange loss consists of unrealized foreign exchange loss during the period.

(8) EBITDA margin is calculated as EBITDA divided by Total Net Sales.

You should not consider our definition of EBITDA in isolation or construe such measure asan alternative to net income or profitability or as an indicator of operating performance or anyother standard measure under Indonesian FAS or U.S. GAAP.

Selected Operating Data

The following table sets forth our selected operating data for the periods indicated.

For the year ended December 31,

For the six-month period

ended June 30,

2013 2014 2015 2015 2016

Net Generation (GWh) .............................. 4,546.3 4,828.0 4,772.2 2,411.5 2,427.6

Net Plant Heat Rate (Btu/kWh-HHV) ........ 8,255 8,198 8,274 8,154 8,230

Net Capacity Factor (%) ........................... 82.3 87.4 86.4 88.0 88.1

Availability (%) ........................................ 95.4 96.1 93.8 99.2 98.2

Network Distribution Loss (%) ................. 0.57 0.58 0.62 0.60 0.58

SAIDI(1) (hours/customer/year) ................. 0.11 0.20 0.11 0.08 1.41(3)

SAIFI(2) (times/customer/year) .................. 0.16 0.25 0.18 0.11 0.91(3)

Notes

(1) “SAIDI” or the System Average Interruption Duration Index is calculated as the sum of all customer interruption

durations, divided by the total number of customers served.

(2) “SAIFI,” or the System Average Interruption Frequency Index, is calculated as the total of all customer

interruptions, divided by the total number of customers served.

(3) The SAIDI and SAIFI for the six months ended June 30, 2016 took into consideration two events that occurred

during the second quarter of 2016. First, we experienced a failure of a current transformer in the 150kV switchyard,

which resulted in the loss of power supply to several customers. The failed unit as well as similar units from the

same manufacturer were removed from service and replaced with those of another manufacturer. Second, an insulator

to a 150kV disconnect switch broke during a routine maintenance, resulting in loss of power supply. In the course of

replacing the damaged part, a grounding cable broke loose, creating a short circuit and tripping several feeders. The

fault was cleared quickly and power supply was restored. All power supplies were normalized on completion of the

replacement work.

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RISK FACTORS

An investment in our Notes involves risks. You should consider carefully all the informationcontained in this offering memorandum, especially the following risk factors, in evaluatingwhether to purchase our Notes. Additional risks not presently known to us or that we currentlydeem immaterial may also materially and adversely impair our business, cash flows, results ofoperations, financial condition or prospects. The trading price of the Notes could decline due toany one of these risks and you may lose all or part of your investment. You should also note thatcertain of the statements set forth below constitute “forward-looking statements” as discussed in“Forward-Looking Statements.” The risks described below are not the only ones that may affectthe Issuer, Signal Capital, the Parent Guarantor or the Notes. In general, investing in securities ofcompanies in emerging market countries such as Indonesia involves risks not typically associatedwith investing in the securities of companies in more developed economies. To the extent thedescription in this section relates to Government or Indonesian macroeconomic data, suchinformation has been extracted from official Government publications or other third-party sourcesand has not been independently verified by us.

Risks Relating to Our Business

Our financial performance is highly dependent on the continued existence, success andgrowth of the businesses in the industrial estates we serve and continued expansion of theexisting industrial estates and development of new available-for-sale industrial land in theindustrial estates we serve, all of which in part depend on the growth of the general globaleconomy.

For the years ended December 31, 2013, 2014, 2015 and for the six-month period ended June30, 2016, our industrial estate sales represented 71.3%, 70.4%, 69.7% and 72.9%, respectively, ofour total net sales. Accordingly, our results of operations depend primarily on the continuedexistence, success and growth of the businesses in the industrial estates served by us. As thesebusinesses in the industrial estates are primarily export-oriented companies engaged in light orheavy manufacturing, such as Japanese automobile manufacturers, Korean electronicsmanufacturers and Japanese plastics manufacturers, their success and growth depend in large parton the strength and growth of the global economy and are also subject to any contraction oradverse changes in the global economy, and East Asia in particular. For example, due to the globaleconomic slowdown that resulted from extraordinary volatility in international capital and creditmarkets and related disruptions in the financial sector in 2008, we experienced a decrease inelectricity demand from industrial estate customers for the fourth quarter of 2008, the first quarterof 2009 over the corresponding periods in the previous years. The global economy remainsrelatively weak when compared to the period prior to 2008. Concerns such as weaker globalcommodities markets, the continuing global economic uncertainties and slowing growth in thePeople’s Republic of China have disrupted financial markets and weakened consumer demand andthe economic outlook in the European Union, the Asia-Pacific Region, the United States and otherparts of the world. In Indonesia, the Government continues to suffer from a large fiscal deficit anda high level of debt. Its foreign currency reserves are modest and the banking sector suffers fromrelatively high levels of non-performing loans, which increase the domestic Indonesian economy’ssensitivity to global downturns. We cannot predict whether changes in global economic conditionswill have any material adverse effect on the continued existence, success and growth of ourindustrial estate customers, and therefore our business, financial condition and results ofoperations.

In addition, new customers will remain the key growth driver for our industrial estate sales.This in turn depends on increased power consumption from developed land and the developmentof available-for-sale industrial land. The industrial estates served by us may not continue toexpand or new land may not be developed and made available for future sale in a timely manneror at all. Any global economic downturn or other factors causing any of the existing businesses in

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these industrial estates to scale back, cease their operations or move to a different industrial estate

not served by us, or any lack of available-for-sale industrial land for future development, could

have a material adverse effect on our business, financial condition, results of operations and

prospects.

We are subject to risks associated with reliance on PLN as a significant customer.

PLN, which is wholly-owned by the Government, is a major off-taker for electricity produced

by us. For the years ended December 31, 2013, 2014, 2015 and for the six-month period ended

June 30, 2016, our sales to PLN represented 28.7%, 29.6%, 30.3% and 27.1%, respectively, of our

total net sales. PLN’s capacity commitment under the EPSPA agreed to between PLN and us was

initially 150 MW for a term ending June 1, 2031. Through subsequent amendments to the EPSPA,

PLN has committed to an additional 150 MW (resulting in a total commitment of 300 MW) until

January 26, 2019. PLN’s 300 MW capacity commitment represents approximately 34.7% of our

current installed generation capacity of 864 MW.

In June 1998, PLN suspended its purchase of power from us under the EPSPA due to adverse

economic conditions, which reduced PLN’s power distribution and adversely affected PLN’s

financial condition. We continued to bill PLN for fixed guaranteed off-take charges during the

suspension period until March 2003, when PLN and we entered into an agreement to amend the

EPSPA, pursuant to which PLN has paid to us a restructuring charge amounting to US$41.0

million. Furthermore, between April 2006 and December 2006, PLN delayed payments for power

purchases due to negotiations between Pertamina and us to finalize a gas price increase, which in

turn necessitated an appropriate revision of our contractual agreement with PLN. As of May 2007,

these delayed payments had all been received, and since then we have not experienced any

difficulties receiving payments from PLN or any other customer. Despite the existence of binding

agreements, we may experience difficulties in collecting payments from PLN in the future, and

such difficulties may adversely affect our business, results of operations and prospects.

PLN’s ability to meet its obligations under the EPSPA is largely dependent on Government

support in the form of subsidies, which may not continue in perpetuity. PLN has historically

operated as a Government service provider and, accordingly, the Government has historically

influenced, and is likely to continue to influence, its strategy and operations. If PLN is required to

act in the Government’s interests and if those interests differ from or conflict with our interests,

our business, financial condition, results of operations and prospects could be materially and

adversely affected. There can be no assurance that PLN will be able to perform its obligations to

us under the EPSPA or that its financial condition will not be adversely affected in the future due

to factors beyond our control or PLN’s control, such as a significant depreciation of the Rupiah

against the U.S. Dollar.

Customers in the business area served by us may be able to receive electricity from othersources due to recent regulatory changes or increased competition.

We have been the sole private supplier of electricity serving five neighboring industrial

estates in our business area since 1993. However, the Government has since begun to encourage

more competition in the power generation industry, most notably through the passage of Law No.

30 of 2009 on Electricity (“New Electricity Law No. 30”) on September 23, 2009 and its

implementing regulations. Under New Electricity Law No. 30 and Regulation of the Minister of

Energy and Mineral Resources (“MEMR”) No. 28 of 2012 on the Application Procedures to Obtain

Business Area for Electricity Power Supply For Public (“MEMR Regulation 28/2012”), issued on

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November 27, 2012, and as amended by Regulation of the Minister of Energy and MineralResources No. 7 of 2016 on the Amendment to MEMR Regulation 28/2012 (“MEMR Regulation7/2016”), the Minister of Energy and Mineral Resources has the authority to, among other things:

• grant integrated electricity business licenses (Izin Usaha Penyediaan Tenaga Listrik, the“IUPTL”) to companies to supply electricity for public use within a business areaalready served by another license holder, if the existing license holder is incapable ofsupplying or distributing electricity on a reliable basis in that business area; and

• permit any company within the business area to generate electricity strictly for its ownuse if it would be more economical than paying the electricity prices charged by thelicense holder.

Although New Electricity Law No. 30 and MEMR Regulation 28/2012 reflect the generalprinciple that only one business entity will have permission, within a single business area, toconduct an integrated power generation business for public use, MEMR Regulation 28/2012 alsoprovides that one business area may be served by more than one electricity license holder if,among other things, the existing electricity license holder is unable to supply or distributeelectricity that meets required standards of reliability and quality or surrenders all or part of itsbusiness area to the Government. Thus, the New Electricity Law No. 30 is designed to allow forgreater private sector participation in the power generation industry and is therefore expected toincrease competition in this sector.

Accordingly, the Government’s encouragement of more competition in the power generationindustry could result in the emergence of numerous competitors for us and for PLN, which is oursignificant customer. If we are deemed to be incapable of supplying or distributing electricity inour business area that meet the required standards of reliability and quality, the DirectorateGeneral of Electricity, acting on behalf of the Minister of Energy and Mineral Resources, mayallow another electricity license holder to begin servicing our business area. Since our powerpurchase contracts with our industrial estate customers do not contain a minimum notice periodfor termination, the impact on our business if customers choose to contract with a new electricitylicense holder may be immediate. There can be no assurance that we will not in the future facecompetition in our business area, including from PLN and other private sector participants.Similarly, PLN may face similar competitive challenges, causing its market position, financialcondition and results of operations to be materially and adversely affected, which, as PLN is oursignificant customer, could in turn materially and adversely affect our business, financial conditionand results of operations. See “Business—Competition” and “Regulation of the Indonesian PowerGeneration Industry—New Electricity Law No. 30—Business Area.”

Any actions by the Minister of Energy and Mineral Resources which adversely affect ourcompetitive environment or our business in the future could reduce our revenues and couldadversely affect our business, financial condition, results of operations and prospects. Such actionscould also adversely affect our network utilization rate and result in our possessing overbuiltnetwork assets and capacity.

Our gas-fired power plants rely primarily on two natural gas suppliers and the failure ofour suppliers to supply sufficient amounts of natural gas required for us to delivercontracted-for quantities of electricity to our customers may have an adverse effect on ourbusiness, financial condition and results of operations.

Natural gas is the principal fuel used to operate our power plants. Our gas-fired power plantshave been declared a VNO, allowing us preferential allocation of natural gas supply. We sourcenatural gas for our power plants from two major suppliers, Pertamina and PGN. Pertamina, whichsupplied 51.0% and 56.7% of our daily gas consumption during the year ended December 31, 2015and the six months ended June 30, 2016, respectively, is a subsidiary of PT Pertamina (Persero), astate-owned oil and gas enterprise involved in various activities, including exploration, production,processing, marketing, distribution and trading of oil and gas products. PGN, our second source of

22

supply, which supplied 46.5% and 43.2% of our daily gas consumption during the twelve monthsended December 31, 2015 and the six months ended June 30, 2016, respectively, is a state-ownedgas supplier. Our sale and purchase agreement with PGN is effective until March 31, 2020. Ourpower plants currently receive approximately 60.6 million standard cubic feet (“MMSCF”) of gasper day from Pertamina and approximately 46.1 MMSCF of gas per day from PGN, comprising56.7% and 43.2% of our daily gas consumption, respectively.

Between August and September 2006, we experienced difficulty in obtaining adequatesupplies of natural gas to meet customer electricity demands due to the inability of Pertamina tosecure sufficient sources of natural gas and deliver the volumes required under our contracts withcustomers. These interruptions in the supply of natural gas from Pertamina reduced the overallamount of electricity we generated, which in turn resulted in our failure to deliver the requiredamount of electricity to PLN and our payment of penalty fees to PLN under the EPSPA. Weaddressed the interruptions in supply of natural gas from Pertamina, in part, by operating the gasturbines on diesel fuel, which is more expensive than natural gas, installing compressionequipment to alleviate the gas supply pressure issues and contracting for additional natural gassupplies from PGN. See “Business—Natural Gas Supply.”

While we have not experienced any recent difficulties in obtaining adequate supplies ofnatural gas, we may face such difficulties in the future. No assurance can be given if we facedisruptions in natural gas supply in the future, we will be able to switch to alternative suppliers ofnatural gas or increase the amount of natural gas we receive from our current suppliers, asnecessary. We also may face delays in the implementation of such a change or be required to payincreased natural gas prices as a result. These factors may have a material adverse effect on ourbusiness, financial condition and results of operations. Moreover, there has recently been publicityregarding Government plans for Pertamina to acquire PGN, which is subject to regulatoryapproval. While we cannot be sure if, and or when such acquisition may take place, in the eventthat it does occur, we will become reliant on a single natural gas supplier and as the full impactof such change on our business is uncertain and cannot be ascertained at this stage, there can beno assurance that such change will not adversely affect our business.

Both Pertamina and PGN are state-owned entities, and the Government has historicallyinfluenced, and is likely to continue to influence, their strategy and operations. The Governmentalso has the ability to influence and control other government-related entities that we conductbusiness with, including PLN, a major off-taker for electricity produced by us. There can be noassurance that the Government will not exercise its control and influence to the benefit of thesegovernment-owned or government-related entities. If these entities are required to act in theGovernment’s interests and those interests differ from or conflict with our interests, or if theGovernment favors the interests of these entities over our interests, our business, financialcondition, results of operations and prospects could be materially and adversely affected.

We may not be able to extend or renew our gas supply contracts with our suppliers uponexpiry, on commercially acceptable terms or at all.

We rely on Pertamina and PGN to supply natural gas to our power plants. Pertamina andPGN supplied 51.0% and 46.5% of our daily gas consumption during the year ended December 31,2015, respectively, and 56.7% and 43.2% during the six months ended June 30, 2016, respectively.Our current gas sale and purchase agreement with PGN is effective from June 1, 2013 to March31, 2020. We have a long-term natural gas sale and purchase agreement with Pertamina, datedAugust 18, 1994, as amended (the “Pertamina Natural Gas Agreement”) effective through theearlier of June 30, 2016 (which represents a six-month extension from the original expiration date,as agreed in a Memorandum of Understanding (the “Bridging Memorandum”) between us andPertamina), or when the total contract defined amount of gas of 394,113 MMSCF has beendelivered. The Bridging Memorandum was extended to July 31, 2016 and then for a further threemonths to October 31, 2016. As of July 31, 2016, the total amount of natural gas used by us underthe terms of the Pertamina Natural Gas Agreement was approximately 340,736 MMSCF.

23

We are currently in negotiations with Pertamina for the extension of the Pertamina NaturalGas Agreement until December 31, 2018 (the “Extension”), which is subject to regulatory approvalof certain material terms and conditions. If the Extension cannot be successfully concluded for anyreason before October 31, 2016, we and Pertamina intend to further extend the BridgingMemorandum on a short-term basis until the Extension is successfully concluded. There can be noassurance that we will be able to successfully conclude the Extension or an alternative agreementon favorable terms or at all. Failure to enter into the Extension or further short-term extensions tothe Bridging Memorandum could result in interruptions or shortages in the supply of natural gasto our power plants and cause significant disruptions to our operations, which would materiallyand adversely impact our business, financial condition, results of operations and prospects.

Furthermore, upon the expiration of the Extension (should it be successfully concluded) andthe gas sale and purchase agreement with PGN in December 2018 and March 2020, respectively,we will need to enter into further extensions of such agreements, or enter into new agreementswith other natural gas suppliers, in order to ensure a continuing supply of natural gas to ourgas-fired power plants. Such further extensions or new agreements would be subject to negotiationand regulatory approval of their material terms and conditions. There can be no assurance that wewill be able to successfully conclude such further extensions in a timely manner, on favorableterms or at all. Failure to enter into further extensions of our agreements with Pertamina and PGNupon expiration or to enter into new agreements would materially and adversely impact ourbusiness, financial condition, results of operations and prospects.

If the cost of natural gas increases, our results of operations may be adversely affected.

The price of natural gas in Indonesia has been and continues to be regulated by governmentpolicy. Typically, if natural gas prices fluctuate due to changes in government policy, we and oursuppliers agree on a revised contract price. Pertamina and PGN will then issue a letter to us toformally amend the previously effective contract price. We then proceed to revise the electricitytariffs which we charge to our customers, using the revised contract price for the natural gas, ascontractually permitted and subject to government regulations regarding electricity tariffs.Pertamina has applied to MEMR for approval to move from our current dual price structure, wherePertamina sells to us natural gas at a differentiated price of US$4.54/MMBTU andUS$7.00/MMBTU for natural gas used for producing electricity intended for PLN and industrialestate customers, respectively, to a single price structure where Pertamina sells to us natural gas ata uniform price. We cannot predict with certainty the price under which Pertamina will sell usnatural gas if the single price structure is approved by MEMR, but if the single price structureresults in an effective increase in the natural gas prices we pay, we intend to pass on such priceincrease to our customers, as contractually permitted and subject to government regulationsregarding electricity tariffs. However, we cannot give any assurance that our customers will notseek discounts from us, seek ways to self-generate electricity, or otherwise lower their offtakeamount in response to the natural gas price increase, which would materially and adversely affectour business, financial condition, results of operations and prospects. See “—Risks Relating toGovernment Regulation—We operate under a Government-regulated tariff regime and are thereforeunable to unilaterally adjust the pricing of electricity that we sell, and are subject to uncertaintyresulting from the change in tariff policy under New Electricity Law No. 30 and Regulation14/2012.”

Delays or difficulties encountered in the process of obtaining land rights could disrupt ourexpansion plans and future growth prospects.

We possess land rights in the form of a Statement Letter of Relinquishment of Land Rights(Surat Pernyataan Pelepasan Hak Atas Tanah), a Letter on Transfer of Cultivated Land (SuratOper Alih Tanah Garapan) and a Land Sale and Purchase Agreement which cover the landsurrounding our first gas-fired power plant, our second gas-fired power plant and our coal-firedpower plant, with a total areas of 2,661 square meters, 125,350 square meters and 1,433,536square meters, respectively.

24

Government regulations may delay or limit our ability to obtain additional land rights for theexpansion of our power plant facilities. In order to expand our power plant facilities, we must firstacquire HGB title for the land relating to such expansion. The stages of obtaining HGB title are asfollows: (i) obtaining the location permit and environmental permit, (ii) completion of the landsurvey and mapping process, (iii) preliminary approval from the Government’s relevant committee,and (iv) obtaining a decree of HGB title and issuance of the HGB certificate. The process istime-consuming and each stage presents opportunities for delay, which may inhibit our ability toobtain HGB title in a timely manner, or at all. Failure to obtain HGB title would inhibit ourability to use such land and disrupt our expansion plans, and we may be unable to recover thecosts related to the acquisition of such land or incur new costs in acquiring alternative land.Failure to obtain, or significant delay in obtaining, HGB title to lands relating to our futureexpansion would adversely impact our business, financial condition and growth prospects.

The location of our power plants in Java increases the difficulty of obtaining adequatesupplies of natural gas.

Indonesia lacks an extensive natural gas transmission and distribution network, and many ofits major natural gas reserves are located in remote areas (such as East Kalimantan and Papua)away from the major demand centers of Java and Bali. As a result, suppliers from these remoteareas lack reliable and adequate access to Java, the location of our power plant, which sometimesresults in natural gas supply disruptions. Our operations may therefore be adversely affected byinsufficient or poor-quality natural gas supplies resulting either from inadequate sources of supplyor lack of adequate transmission and distribution networks. If for any reason we are not able tosecure sufficient and adequate supplies of natural gas for our power plant, this would have amaterial adverse effect on our business, financial condition, results of operations and prospects.

We may not be able to successfully complete the construction of our new coal-fired powerplant. In addition, we have no experience operating or managing a coal-fired power plant.

We are currently constructing a coal-fired power plant on an approximately 72 hectare site inBabelan, Bekasi, Indonesia, which is about approximately 20 kilometers east of Jakarta. See“Business—Our Gas-Fired Power Plants” and “Business—Coal-Fired Power Plant Construction.”

We expect to incur substantial capital expenditures as we continue the construction of thecoal-fired power plant as well as for the replacement of operating assets and infrastructure in thefuture. We estimate the aggregate cost for the construction of the coal-fired power plant to beUS$475.1 million, of which US$391.7 million has been spent as of June 30, 2016. This amountincludes direct construction costs such as direct labor, material and equipment costs, as well asother expenses such as design, development, project management and expenses related to permitsand fees.

The construction and installation of a new power plant involve many risks, any of whichcould give rise to delays or cost overruns, including the following:

• delays or inability to obtain all necessary zoning, land use, building, development andother required governmental and regulatory licenses, permits, approvals andauthorizations;

• inability to complete the acquisition of the land planned for the construction anddevelopment of the new power plant as planned;

• default by our contractors on their obligation under the construction contracts orinability of the contractors to meet such obligations;

• the failure to resolve issues with incumbent residents and related settlement issues orotherwise;

25

• unforeseen technical or operational issues discovered upon the commissioning andinstallation of the plant and its associated distribution systems;

• delays in the plant’s achieving its full intended power generation capacity aftercommissioning and installation;

• shortages of equipment or materials;

• unforeseen engineering, design, environmental and geological problems; and

• work stoppages, weather interferences, accidents and other unanticipated cost increases.

In addition, we are not using an engineering, procurement and construction (“EPC”)contractor to manage (and provide single point responsibility for) the construction of the coal-firedpower plant. Instead, we are currently managing the various parties providing the engineering,procurement and construction services for the construction of the coal-fired power plant with theassistance of engineering consultants, AF-Consult AB (“AF-Consult”) and AECOM.

The construction of the new power plant may not be completed on schedule and withinbudget, or our management may not be able to focus simultaneously on our power generationbusiness and may be distracted by, or have conflicts as a result of, the demands of theconstruction of the new power plant because management’s time and services will need to beshared between the construction of the new power plant and the normal duties related to ourpower generation business. Further, the new power plant, when completed and commissioned, maynot achieve the results currently expected by management. For example, it may cost more thanexpected to operate the new power plant. In addition, we have no experience operating andmanaging a coal-fired power plant. Matters related to the sourcing of coal, disposal of ashgenerated from the plant, compliance with relevant environmental and other regulations and hiringnecessary personnel may demand more of management’s time and attention than currentlyanticipated.

If we are unable to successfully complete and commission the construction of the new powerplant on time and within budget, or if we are unable to successfully operate and manage the newpower plant after completion, our business, financial condition, results of operations and prospectsmay be materially and adversely affected.

We may not have sufficient customer demand for our capacity expansion, including for theadditional installed generation capacity from the coal-fired power plant and future capacityexpansions being considered.

After the completion of our new coal-fired power plant, our installed generation capacity willincrease from the current 864 MW to 1,144 MW. At present, we have contracts to sell up to 300MW of our capacity to PLN, which is PLN’s capacity commitment until January 2019. Thereafter,PLN’s capacity commitment decreases to 150 MW until 2031. However, there is no assurance that,after such decrease or expiration in capacity commitment, we will be able to renew our powersupply contracts with PLN or will have sufficient demand for our increased installed networkgeneration capacity from other customers. Although we have demonstrated a track record ofrenewals and extensions of our contracts in the past, we cannot be certain that we will be able torenegotiate power purchase contracts once their terms expire, and even if we are able to do so, wecannot assure you that we will be able to do so under the same prices or terms. If there is notsufficient demand for such increased installed network generation capacity, this may have amaterial adverse effect on our business, financial condition, results of operations and prospects.

We and General Electric Capital Limited (“GE Capital”) have entered into an MoU related tothe development of a planned 1,100 to 1,400 MW gas-fired power plant in Indonesia, which wouldfurther increase our overall installed generation capacity to at least 2,244 MW. Although thetransaction is subject to our entering into a power purchase agreement with PLN for an additional1,100 MW of capacity commitment, the terms of such an agreement have not yet been finalized,

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and there is no guarantee that PLN or any other customer would have sufficient and sustaineddemand to support the increased installed generation capacity. The MoU is non-binding, and weand GE Capital may be unable to agree on the terms and conditions for the definitive agreementsrequired to begin or complete the project, so there can be no assurance that the intentionsexpressed in the MoU will be consummated in whole, in part or at all.

We may experience delays or difficulties in obtaining certain Government approvals.

We need to obtain certain Government approvals before we can operate our new coal-firedpower plant. See “—Risks Relating to Government Regulation—We operate in a highly regulatedenvironment, and our business is highly dependent on the IUKU license.” In addition, newequipment at electricity generating plants in Indonesia is required to go through a testing andcommissioning process and Government approvals must be obtained before it is connected to theJava-Bali power grid and commences operations.

Under new Law No. 32 of 2009 on Environmental Protection and Management (“NewEnvironmental Law No. 32”) and Government Regulation No. 27 of 2012 on EnvironmentalPermit, which is the implementing regulation of the New Environmental Law No. 32 (“Regulation27/2012”) issued on February 23, 2012, we are required to, among other things, obtain anenvironmental permit (izin lingkungan) that allows us to conduct certain activities in relation toour business operations that affect the environment. The environmental permit is a pre-requisite toobtain the relevant business licenses. If the environmental permit is revoked, the business licensesgranted will be revoked. Under Regulation 27/2012, any existing Environmental Impact Analysis(“AMDAL”) approval that was issued prior to the enactment of Regulation 27/2012 shall still bedeemed valid. Because our AMDAL for our first power plant was approved prior to the enactmentof Regulation No. 27/2012, we do not need to obtain another environmental permit for our firstpower plant in Cikarang Jababeka. In June 2012, we installed a third GE Frame 9E gas turbinewith other ancillary equipment, increasing the plant’s installed generation capacity to its currentlevel of 755 MW. We are using the third GE Frame 9E gas turbine as a backup unit which is to beoperated as required when any existing gas turbine unit undergoes maintenance or experiences ashutdown and, therefore our AMDAL for our first power plant need not to be amended providedthe third GE Frame 9E gas turbine satisfies and continues to satisfy the following conditions: (i) itis constructed and installed in its original layout in our first gas-fired power plant; (ii) itsoperation does not require any additional supporting facilities, gas fuel usage or water usage; (iii)it is operated only as a backup, emergency or enhancement power supply to support our firstgas-fired power plant; and (iv) its operation does not result in electricity production in excess ofthe maximum permitted electricity production of our first gas-fired power plant (that being anaverage of 540.89 MW and a maximum of 664 MW). However, if we decide to further increasethe capacity of our first power plant, our AMDAL will need to be revised and approved by therelevant Government authority.

We obtained the AMDAL Recommendation and AMDAL Approval for our coal-fired powerplant in the District of Babelan from the Regent of Bekasi on April 18, 2013 and January 20,2014, respectively. The AMDAL assessment for our second gas-fired power plant in the MM-2100Industrial Estate, District of Cikarang Barat was approved on October 7, 2014. If we are unable tomaintain the relevant AMDAL approval or the environmental permits, or any future changes to ourexisting AMDAL are not approved in a timely manner or at all, our business, financial condition,results of operations and prospects could be materially and adversely affected. See“Business—Environmental Matters” and “Regulation of the Indonesian Power GenerationIndustry—AMDAL Process and Environmental Permit.”

Coal prices are cyclical and may be subject to significant fluctuations

The price of the coal which will be used to fuel our coal-fired power plant is affected byglobal coal prices, which tend to be cyclical and subject to significant fluctuations. World coalmarkets are sensitive to factors which are beyond our control, such as changes in coal miningcapacity and output levels, patterns of demand and consumption of coal from the power generation

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industry and other industries for which coal is the principal fuel. Our supply of coal will betransported by sea, and during certain seasons sea conditions are not suitable for barging coal.Although we plan to maintain stockpiles of coal sufficient for three months of consumption, itmay be difficult to predict the proper supply of coal needed for extended periods or to forecastwhen sea conditions will not be appropriate for coal transport, and we may at times need to payincreased costs to obtain coal if there is a supply shock due to transportation difficulties. Futureincreases in the prices of coal or coal transportation costs, as well as difficulties or delays inobtaining adequate supplies of coal to meet customer electricity demands could adversely impactour profit margins, and therefore may materially and adversely affect our business, financialcondition, results of operation and prospects.

We may not successfully execute our growth strategy as it depends on various factors, someof which are outside our control.

Our growth strategy includes sustaining reliability, expanding our generating capacity,improving our operating margins and expanding our generation platform. Our ability to executeour growth strategy will depend on a number of factors, including successfully completing theconstruction of our new coal-fired power plant in a timely and cost-effective manner, realizingefficiencies through equipment upgrades and economies of scale, maintaining our relationshipswith the relevant regulatory authorities and our suppliers and securing the required governmentalapprovals. There can be no assurance that we will be able to continue to grow as we currentlyanticipate or at all, and our failure to do so could have a material adverse effect on our business,financial condition, results of operations and prospects.

Our electricity sales may be adversely affected if the Government re-introduces diesel fuel orother similar subsidies, or customers develop internal power supplies.

During the period from 2002 to 2005, we experienced a decrease in the rate of growth ofelectricity sales, as some of our customers took advantage of diesel fuel subsidies provided by theGovernment and established their own internal power supply sources that used diesel fuel. Ourpower purchase contracts do not carry a minimum notice period should customers choose to adoptan alternative source of power. In mid-2005, the Government abolished the diesel fuel subsidiesand the cost of such internal power supply increased substantially. As a result, by early 2006,most of the customers who had internally generated a portion of their power requirements returnedto using our electricity for all of their power requirements. There is no guarantee that theGovernment will not re-introduce diesel fuel subsidies in the future. If the Governmentre-introduces diesel fuel or other similar subsidies in the future, or if internal power supply againbecomes cost-effective for other reasons such as through the development of alternative generatingor power storage and application technologies, our business, financial condition, results ofoperations and prospects could be materially and adversely affected.

Interruptions in our operations at the power plants located in Cikarang may result in ourdecreased capacity or inability to generate or deliver power, which would adversely affect ourbusiness, financial condition and results of operations.

Our gas-fired power plants are located in Cikarang on West Java Road, approximately 45kilometers east of Jakarta, and currently all of the power supplied by us to our customers isproduced by these power plants. Any interruption in the operation of these power plants wouldhave a materially adverse impact on us. A number of factors could prevent our power plants fromgenerating or delivering power; including:

• the breakdown or failure of power generation equipment or other equipment orprocesses, leading to unexpected maintenance needs, unplanned outages or otheroperational issues;

• flaws in equipment design or in power plant construction;

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• default by our contractors on defect liability or warranty clauses stipulated in ourconstruction contracts;

• the failure of civil structure or transmission systems;

• issues with the quality of, or interruptions in the supply of key inputs, including waterand fuel, among others;

• human error, including mistakes made by an operator when operating any equipment;

• suspension of all or part of our installed generation capacity due to disputes related toour permits and licenses;

• pollution or environmental contamination affecting the operation of our power plant;

• force majeure and catastrophic events, including fires, explosions, landslides, tropicalstorms, floods and terrorist acts, any of which could cause forced outages, suspension ofoperations, personal injury, loss of life and severe damage and destruction to our powerplants; and

• scheduled or unscheduled outages due to maintenance, expansion or refurbishmentworks.

If any of these risks or any similar risk materializes, our ability to generate or deliver powerthrough one or more of our power plants could be adversely affected, thereby decreasing oreliminating revenues that we derive from electricity sales. In particular, any labor unrest,mechanical failure, industrial accident, difficulties in obtaining spare parts or equipment, naturaldisasters, acts of terrorism, non-compliance with applicable environmental and safety regulationsor other disruptions at our power plant would have a significant effect on our business. Forexample, in January 2009, a GE Frame 6B gas turbine generator was damaged on start-up after astandard holiday shut-down and required repairs. The gas turbine was out of service for seven anda half months and came back online on August 15, 2009. We maintain insurance against most, butnot all, of these adverse events, but our insurance may not be adequate to cover all of the lossesor liabilities that might result from such events, or coverage could be denied or contested.

In addition to loss of revenue, failure to provide sufficient amounts of electricity to PLN mayalso lead to penalties under the terms of the EPSPA. Penalties were imposed against us in 2006and in amounts of Rp3.0 billion, Rp4.0 billion, and Rp5.3 billion in 2011, 2012 and 2013,respectively, due to shortfalls in the amount of electricity we provided to PLN. In addition, underthe New Electricity Law No. 30 and MEMR Regulation 28/2012, other companies may be grantedan IUPTL license in our business area if we are deemed incapable of supplying and distributingelectricity on a reliable basis in our business area. Although under the Regulation of the Ministerof Energy and Mineral Resources No. 1 of 2015 on the Cooperation on Electric Power Supply andJoint Utilization of Electricity Distribution Networks (“MEMR Regulation 1/2015”), an IUPTLholder may cooperate with other IUPTL holders by purchasing electricity generated by them inorder to provide sufficient electricity supply to fulfill electricity demand in its business area, therecan be no assurance that there will always be another IUPTL holder having sufficient electricity tosell to us, or which is willing to sell to us on reasonable commercial terms. Thus, anyinterruptions in operations resulting in our inability to generate sufficient electricity to meet ourcustomers’ demands may have a material adverse effect on our business, financial condition andresults of operations.

Our facilities are located in an area prone to earthquakes and may be subject to the effects ofvarious natural disasters affecting Indonesia.

Our facilities and equipment may be materially disrupted by natural disasters. Fires, floods,earthquakes, tsunamis or similar events may result in personal injury, loss of life, severe damageor destruction of our assets, pollution or environmental damage or suspension of operations.

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According to a seismic report dated January 26, 2005 and authored by GE Energy Products France

SNC, our power plant is located in an area, according to the Indonesian Earthquake Code (issued

by the Ministry of Public Works), that is prone to earthquakes. Although we maintain insurance

against certain of these risks, the proceeds of such insurance may not be adequate to cover

reduced revenue, increased expenses or other liabilities arising from such events, or coverage

could be denied or contested. As we are dependent upon the integrity and operation of our

facilities, any future natural disasters may adversely affect our business, financial condition or

results of operations.

In addition, future natural disasters may significantly impact the Indonesian economy.

Indonesia is subject to significant seismic activity that can lead to destructive earthquakes and

tsunamis, and it is also one of the most volcanically active regions in the world. As such,

earthquakes, tsunamis and volcanic eruptions have resulted in significant loss of life and injury

and widespread destruction of property in Indonesia. In the event of a disaster, if the Government

is unable to deliver aid to affected communities in a timely fashion, political and social unrest

could result. Additionally, recovery and relief efforts may strain the Government finances and may

affect its ability to meet its obligations on its sovereign debt. Any such failure on the part of the

Government, or declaration by it of a moratorium on its sovereign debt, could potentially trigger

an event of default under numerous private-sector borrowings, thereby may have a material

adverse effect on our business, cash flows, results of operations, financial condition and prospects.

In addition, there can be no assurance that future geological occurrences or other natural disasters

will not significantly affect the Indonesian economy. A significant earthquake or other geological

disturbance in any of Indonesia’s more populated cities and financial centers could severely

disrupt the Indonesian economy and undermine investor confidence, thereby may adversely affect

our business, cash flows, results of operations, financial condition and prospects.

We have limited insurance coverage.

Our insurance policies cover property damage, machinery breakdown and related business

interruptions, earthquake, volcanic eruption and tsunami, terrorism and sabotage, accidents and

injuries and liability deriving from our activities, including environmental liability. See

“Business—Insurance.” We consider our current insurance coverage to be adequate, but we cannot

assure you that our insurance will be sufficient or effective under all circumstances and against all

hazards or liabilities to which we may be subject. Furthermore, our insurance coverage is subject

to deductibles, caps, exclusions and other limitations. A loss for which we are not fully insured

could have a material adverse effect on our business, financial condition, results of operations and

cash flows. Furthermore, due to rising insurance costs and changes in the insurance markets, we

cannot assure you that our insurance coverage will continue to be available at comparable rates or

on similar terms, if at all. We may also reduce or cancel our insurance coverage at any time. We

may not be able to maintain or obtain insurance of the type and amount we desire at reasonable

rates and we may elect to self-insure a portion of our solar project portfolio. Any losses not

covered by insurance could have a material adverse effect on our business, financial condition,

results of operations and cash flows.

Our success depends on our ability to attract, retain and motivate qualified personnel.

We depend on the continued services of our executive officers, skilled technicians and other

key personnel. Our success depends on our senior management team and the retention of all our

key employees. We rely on these individuals to manage our business, develop and execute our

business strategies and manage our relationships with key suppliers and customers. Our business

could suffer if we were to lose the services of any of our personnel and could not adequately

replace them.

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We may experience local community protests at our power plants.

In the past, protests relating to industrial development, the power generation industry and theenvironment have occurred in Indonesia. For example, during the construction of our coal-firedpower plant, some local residents staged protests related to issues such as the hiring of locallaborers and squatters’ rights. Specifically, the Regent of Bekasi and others, including ourselves,have been named in a lawsuit filed by individuals claiming occupation rights to lands which havebeen approved for use as a coal-loading terminal for our coal-fired power plant, and seekingmaterial damages of more than Rp35 billion and an injunction prohibiting further use of the lands.On June 28, 2016, the Bekasi District Court issued a decision which declared that the defendantsin the above mentioned lawsuit had committed a tort and must pay damages to the claimants in atotal amount of Rp729,250,000. Subsequently, on July 12, 2016, we filed for an appeal to theBekasi District Court under registration No. 289/PDT.G/2015/PN.Bks jo.No. 61/Bdg/2016/PNBks.See “— From time to time, we may be involved in legal and other proceedings arising out of ouroperations.”

In addition, emissions from coal-fired power plants are widely viewed as presenting specificrisks to people’s health and to the environment, and local groups and environmental organizationshave organized protests against the permitting and construction of coal-fired power plants basedon concerns related to greenhouse gas emissions. Protests may also be carried out against thetenants of the industrial estates we serve if they are found to be, or are perceived to be, pollutingthe environment. Future protests affecting the industrial estates that we serve could impact usdirectly and could materially and adversely affect our business, results of operations, prospectsand reputation.

We rely on third-party service providers for certain services necessary to conduct ourbusiness.

We rely on independent firms to provide certain services necessary to conduct our business.For example, the operation of the gas receiving station used to receive fuel for our gas-firedpower plants is a service that we contract out to an independent third-party. The occurrence of anyfailures or interruptions of the systems or delivery of services of independent third parties or theirfailure to perform in accordance with contracted service levels we require could impact ouroperational processes and result in a material adverse effect on our business, financial conditionand results of operation.

From time to time, we may be involved in legal and other proceedings arising out of ouroperations.

From time to time, we may be subject to disputes that may result in litigation or other legalclaims concerning matters arising out of our operations. We may be required to respond to ordefend against these claims, which will divert resources away from our principal business. Therecan be no assurance that our defense of such claims would be successful, and we may be requiredto make material settlements. This could have a material adverse effect on our financial conditionand cash flows, results of operations and reputation.

Our consolidated financial statements are not prepared in accordance with U.S. GAAP andif they were prepared in accordance with U.S. GAAP, the results of operations and financialconditions as reflected in the consolidated financial statements could be different and suchdifferences may be material.

Our Financial Statements included elsewhere in this offering memorandum have beenprepared in accordance with Indonesian FAS and presented in U.S. Dollars, which is ourfunctional and reporting currency. There could be significant differences between Indonesian FASand U.S. GAAP as applied to our Financial Statements. This offering memorandum does not eitherdescribe all of the differences between Indonesian FAS and U.S. GAAP or reconcile in a

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quantitative manner our Financial Statements presented under Indonesian FAS to U.S. GAAP.There can be no assurance that such quantitative reconciliation, if performed, would not revealsignificant differences. See “Summary of Significant Differences between Indonesian FAS andU.S. GAAP” included elsewhere in this offering memorandum.

Exchange rate fluctuations may materially and adversely affect our business, financialcondition or results of operations.

As of January 1, 2012, we adopted the U.S. Dollar as our functional currency. While this hasreduced the effect of exchange rates on our results of operations because a substantial portion ofour costs and expenses are denominated in U.S. Dollars, we are still exposed to exchange raterisks from transactions that are denominated in Rupiah and other currencies that are not ourfunctional currency. For instance, some of our costs are denominated in Rupiah and, therefore, anappreciation in the value of the Rupiah tends to have an adverse effect on such costs. On the otherhand, a depreciation in the value of the Rupiah tends to have an adverse effect when we convertour outstanding Rupiah cash balances and payments received from our customers into U.S.Dollars. In addition, adverse economic conditions in Indonesia incidental to the depreciation of thevalue of Rupiah may lead to a decrease in electricity demand, which may partially offset thebenefits of depreciation. One of the most significant immediate causes of the economic crisis thatbegan in Indonesia in mid-1997 was the depreciation and volatility of the value of the Rupiah asmeasured against other currencies, such as the U.S. Dollar. The Rupiah continues to experiencesignificant volatility. Although the Rupiah has appreciated considerably from its low point ofapproximately Rp17,000 per U.S. Dollar in January 1998, the Rupiah continues to experiencesignificant volatility. For example, the Rupiah depreciated from Rp12,189 per U.S. Dollar as ofDecember 31, 2013 to Rp13,180 per U.S. Dollar as of June 30, 2016. See “Exchange Rates andExchange Controls” for further information on changes in the value of the Rupiah as measuredagainst the U.S. Dollar in recent periods. Significant fluctuations in Rupiah against the U.S.Dollar could therefore have an adverse effect on our results of operations.

Fluctuations in foreign currency exchange rates have resulted in us recording a net foreignexchange loss of US$24.3 million, US$6.9 million and US$10.6 million, reflecting a depreciationof Rupiah of 26.1%, 2.1% and 10.9% for the years ended December 31, 2013, 2014 and 2015,respectively, and net foreign exchange loss of US$1.0 million, reflecting an appreciation of Rupiahof 4.5% for the six-month period ended June 30, 2016. Our cost of sales, other than natural gas,spare parts, repairs and maintenance and certain other expenses, are denominated in Rupiah andother currencies that are not our functional currency.

Most of our revenues are denominated in Rupiah. However, tariffs for both industrial estatecustomers and PLN include automatic adjustments for currency fluctuations and are billed tocustomers in Rupiah at the prevailing exchange rate at the time of billing. While ourRupiah-denominated revenues are subject to exchange rate fluctuations, in U.S. Dollar terms, itstariffs remain constant regardless of the Rupiah-U.S. Dollar exchange rate. However, depreciationof the Rupiah against the U.S. Dollar may negatively impact the ability of our customers to payelectricity bills or comply with their obligations under their agreements with us.

We currently do not hedge exchange rate exposures in our business or financing operations.See “Management’s Discussion and Analysis of Financial Condition and Results ofOperations—Factors Affecting Our Results of Operations—Effects of Fluctuations in ForeignCurrency Exchange Rates.”

The Rupiah has generally been freely convertible and transferable (except that Indonesianbanks may not transfer Rupiah to accounts held by non-Indonesians who lack a bona fide trade orinvestment purpose). However, from time to time, Bank Indonesia has intervened in the currencyexchange markets in furtherance of its policies, either by selling Rupiah or by using its foreigncurrency reserves to purchase Rupiah. In addition, the current floating exchange rate policy of

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Bank Indonesia may be modified, the Rupiah may continue to experience significant fluctuationsagainst currencies, including the U.S. Dollar or the Government may not take additional action tostabilize, maintain or increase the value of the Rupiah, or any of these actions, if taken, may notbe successful. See “Exchange Rates and Exchange Controls.”

Modification of the current floating exchange rate policy of Indonesia could result insignificantly higher domestic interest rates, liquidity shortages, capital or exchange controls, or thewithholding of additional financial assistance by multinational lenders. These changes may resultin a reduction of economic activity, an economic recession, loan defaults and increases in theprice of imports. Any of the foregoing consequences could materially and adversely affect ourbusiness, financial condition, results of operations and prospects.

Future financing may place restrictions on our operations.

Additional debt financing which we may undertake in the future may place significantrestrictions on us and among other things:

• require us to dedicate a substantial portion of our cash flow from operations topayments on our debt, thereby reducing the availability of our cash flow to fund capitalexpenditure and other general corporate purposes;

• limit our flexibility in planning for, or reacting to, changes in our business and ourindustry, either through the imposition of restrictive financial or operational covenantsor otherwise;

• increase our vulnerability to general adverse economic and industry conditions; or

• limit our ability to pursue our growth plans.

These restrictions and risks could have a material adverse effect on our business, financialcondition, results of operations and prospects.

Our principal shareholders may take actions that are not in, or may conflict with, the bestinterests of the Noteholders.

As of the date of this offering memorandum, members of the Joso, Brasali and Sofyanfamilies beneficially owned 85% of our outstanding shares. For information relating to thebeneficial ownership of our shares, see “Principal Shareholders.” These shareholders, if they acttogether, may be able to effectively control certain matters requiring approval by our shareholders,depending on participation at our shareholder meetings. Circumstances may arise in which theinterests of our principal shareholders may conflict with your interest as a Noteholder.

Our financial performance and results of operations are subject to seasonal trends.

We experience seasonal fluctuations in electricity demand from our customers and generallyrecord lower levels of electricity consumption during the Lebaran holiday (the date of which isdependent on the lunar calendar and changes each year) and in December. As a result of thesefluctuations, including the movement of Lebaran dates, comparisons of certain operating metricssuch as average kWh per day and comparisons of our operating results of a given interim financialperiod may or may not be comparable to results from the preceding interim period or to thecorresponding period in prior years and may not be a reliable indicator of our full year results orof our operational and financial condition.

Our operations depend on our ability to maintain satisfactory labor relations.

Laws and regulations which facilitate the forming of labor unions, combined with weakeconomic conditions, have resulted and may continue to result in labor unrest and activism inIndonesia. In 2000, the Government issued a labor regulation allowing employees to form unionswithout employer intervention. On February 25, 2003, the Indonesian parliament, the People’s

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Representative Council, Dewan Perwakilan Rakyat, or DPR, passed a labor law, Law No. 13/2003(“Labor Law No. 13”) which, among other things, increased the amount of severance, service andcompensation payments to terminated employees. Labor Law No. 13 took effect on March 25,2003 and requires further implementation of regulations that may substantively affect laborrelations in Indonesia. Labor Law No. 13 requires bipartite forums with participation fromemployers and employees if there are at least 50 employees at a company. To negotiate acollective labor agreement with such a company, a labor union’s membership is required to havemore than 50% of the total number of employees at such a company. As of December 31, 2015,we did not have any labor union. Under Labor Law No. 13, employees who voluntarily resign arealso entitled to payments for (i) unclaimed annual leave, (ii) relocation expenses (if any) and (iii)severance pay which amount is stipulated in our company regulation or collective labor agreement.

Labor unrest and activism in Indonesia, such as that evidenced by protests in Jakarta inDecember 2012, could disrupt our operations, our suppliers, customers or contractors and couldaffect the financial condition of Indonesian companies in general, depressing the prices ofIndonesian securities on the Indonesian or other stock exchanges and the value of the Rupiahrelative to other currencies. Such events and any significant labor dispute or labor action that weexperience could have a material adverse effect on our business, financial condition, results ofoperation and prospects.

Moreover, the Labor Law No. 13 provides that an employer is not allowed to pay anemployee wages below the minimum wage stipulated annually by the provincial, regional or citygovernment. The minimum wage is set in accordance with the need for a decent standard ofliving, taking into consideration the productivity and growth of the economy. However, as thereare no specific provisions on how to determine the amount of a minimum wage increase, minimumwage increases can be unpredictable. Recently, the provincial government of Jakarta, through theGovernor of DKI Jakarta Regulation No. 230 of 2015, which became effective on January 1, 2016,stipulated that the minimum wage for Jakarta for 2016 is Rp3,100,000 per month, which representsan increase from the Rp2,700,000 minimum wage of 2015. Further, the provincial government ofWest Java, through the Governor of West Java Decree No. 561/KEP.1322-BANGSOS/2015, whichbecame effective on January 1, 2016, stipulated that the minimum wage for the Bekasi Regencyfor 2016 is Rp3,261,375 per month, which represents an increase from the Rp2,925,000 minimumwage of 2015. Minimum wage increases in Indonesia could have a material adverse effect on ourbusiness, cash flows, financial condition and prospects.

Risks Relating to Government Regulation

The power generation industry in Indonesia is highly regulated and the implementingregulation for the New Electricity Law No. 30 was only recently issued. The full impact of theNew Electricity Law No. 30 on our business is uncertain.

On September 23, 2009, New Electricity Law No. 30 came into effect. New Electricity LawNo. 30 revoked and replaced the provisions of Law No. 15/1985 on Electricity (“Old ElectricityLaw No. 15”), which had been implemented by Government Regulation No. 10/1989, as amended,and Minister of Energy and Mineral Resources Regulation Nos. 0010/2005 and 26/2008 (Ministerof Energy and Mineral Resources Regulation Nos. 0010/2005 and 26/2008 are collectively referredto as the “Old Electricity Implementing Regulations”). In addition, on January 25, 2012,Government Regulation No. 14 of 2012 on Electric Power Supply Business Activities (“Regulation14/2012”) as amended by Government Regulation No. 23 of 2014 which was issued on April 14,2014 (“Regulation 23/2014”), which is the implementing regulation of New Electricity Law No.30, came into effect and revoked and replaced Government Regulation No. 10/1989, as amended.The Old Electricity Implementing Regulations are still deemed to be valid as long as they do notcontravene the provisions of New Electricity Law No. 30, Regulation 14/2012 and Regulation23/2014. See “Regulation of the Indonesian Power Generation Industry—New Electricity Law No.30.”

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New Electricity Law No. 30 is designed to allow for greater private sector participation inthe power generation industry and is therefore expected to increase competition in this sector.Under New Electricity Law No. 30, Regulation 14/2012 and Regulation 23/2014, electricity supplyin Indonesia is no longer executed by the state and carried out by PLN as the holder of anationwide electricity concession (Pemegang Kuasa Usaha Ketenagalistrikan or “PKUK”). Instead,the electricity supply is controlled by the state and conducted by the central Government and theregional governments through state-owned enterprises, regional-owned enterprises, private businessenterprises, cooperatives and non-governmental enterprises. However, PLN, as a state-ownedenterprise is given first priority to be the electricity supplier for the public. If PLN declines theoffer to undertake the public power generation business for a specified area or is unable toprovide sufficient supply, the central Government or the regional government, in accordance withtheir respective authority, may offer the right to undertake the public power generation business toregional-owned enterprises, private enterprises or cooperatives. See “—Risks Relating to OurBusiness—Customers in the business area served by us may be able to receive electricity fromother sources due to recent regulatory changes or increased competition.”

Regulation 14/2012 and Regulation 23/2014 provide further details on certain aspects of NewElectricity Law No. 30, such as (i) the meaning of the “first priority” right of state-ownedenterprises with respect to the power generation industry, (ii) details for the sharing of regulatorycontrol among the central Government and regional governments in matters of licensing and tariffsetting, (iii) criteria for determining the permitted business area for activities such as electricitygeneration, electricity transmission, electricity distribution, electricity sale or integrated powergeneration business for public use, and (iv) the procedures to obtain a business area as well as theprinciple that only one business entity will have permission, within a single business area, toconduct an integrated power generation business for public use. However, Regulation 14/2012 andRegulation 23/2014 do not provide any details on other aspects of New Electricity Law No. 30,such as the regulatory “adjustment” process required for existing integrated IUKU licenses issuedunder Old Electricity Law No. 15 and procedures for tariff determination and approval.

The adjustment process for IUKU licenses issued by the Minister of Energy and MineralResources is addressed under the Regulation of the Minister of Energy and Mineral Resources No.35 of 2013 regarding Procedures for Obtaining Permits of Electric Power Business, which wasissued on December 20, 2013 as lastly amended by Minister of Energy and Mineral Resources No.12 of 2016 (“MEMR Regulation 35/2013”), stating that an IUKU license that was issued by theMinister of Energy and Mineral Resources prior to the issuance of MEMR Regulation 35/2013shall be valid until its expiration date. Upon the expiration of such IUKU license, the IUKUlicense holder must apply for new electricity business licenses, namely IUPTL, to the Minister ofEnergy and Mineral Resources. Under Regulation 14/2012, IUPTLs issued by Minister of Energyand Mineral Resources are IUPTLs for (a) electricity companies whose business areas covermultiple provinces, (b) state-owned enterprises, or (c) business entities which sell electricity orleases electricity networks to a holder of an IUPTL that was issued by the Minister of Energy andMineral Resources, such as PLN. In addition, under Regulation of the Minister of Energy andMineral Resources No. 35 of 2014 on the Delegation of Authority to Issue IUPTL to theInvestment Coordinating Board (Badan Koordinasi Penanaman Modal or “BKPM”) (“MEMRRegulation 35/2014”), the Minister of Energy and Mineral Resources has delegated its authority toBKPM. Therefore, the application for an IUPTL must be submitted to BKPM.

Our IUKU license has been amended several times in line with increases in the generationcapacity of our power plant and most recently on October 18, 2012, an amendment of our IUKUlicense was issued by the Regent of Bekasi. Regulation 14/2012, Regulation 23/2014, MEMRRegulation 35/2013 and MEMR Regulation 35/2014 do not provide detailed procedures on theadjustment process for IUKU licenses which were issued by regional governments or on tariffdetermination and approval. As such matters have not been covered by the current implementingregulations of New Electricity Law No. 30, there can be no assurance that any furtherimplementing regulations, the amendment or interpretation of other existing laws and regulationsrelated to electricity supply, or the introduction of additional laws or regulations related to

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electricity supply, will not adversely affect our business, financial condition, results of operations

and prospects. See “—We operate in a highly regulated environment, and our business is highly

dependent on the IUKU license” and “—We operate under a Government-regulated tariff regime

and are therefore unable to unilaterally adjust the pricing of electricity that we sell, and are

subject to uncertainty resulting from the change in tariff policy under New Electricity Law No. 30

and Regulation 14/2012.”

We operate in a highly regulated environment, and our business is highly dependent on theIUKU license.

Our business is subject to extensive regulation by the Minister of Energy and Mineral

Resources of Indonesia. We are dependent on the retention of our IUKU license as issued by the

Regent of Bekasi, who has authority to grant the IUKU license for our business area. Our IUKU

license has been amended several times in line with increases in the generation capacity of our

power plant and most recently, on October 18, 2012, an amendment of our IUKU license was

issued by the Regent of Bekasi to reflect our International Organization for Standardization

(“ISO”) base-rated generation capacity of 854 MW. This amended license for the increased ISO

base-rated generation capacity of 854 MW is valid for 30 years from the date of issuance, and

may be extended by submitting a written application within 60 days prior to the expiration date.

Further, on January 11, 2016 we obtained an IUPTL license for our second gas-fired power plant

for a capacity of 126 MW, which is valid for 30 years and may also be extended. We intend to

apply to further amend our IUKU license to account for our expected increase of capacity

resulting from the completion of our coal-fired power plant.

Under New Electricity Law No. 30, our IUKU license issued under Old Electricity Law No.

15, as amended, remains valid until its expiration, but is subject to adjustment to conform to the

provisions of New Electricity Law No. 30 and its implementing regulations. As Regulation

14/2012, MEMR Regulation 35/2013 and MEMR Regulation 35/2014 do not provide detailed

procedures on the adjustment process for IUKU licenses which were issued by regional

governments, it is unclear what the adjustment process will be implemented, how the adjustment

process will be performed and what impact, if any, such an adjustment will have on us and on the

latest amendment of our IUKU as issued by Regent of Bekasi. Further implementing regulations

may be issued and there can be no assurance that such regulations will not impose additional or

more stringent requirements upon us, which may adversely affect our business, financial condition,

results of operations and prospects.

In addition, failure to comply with all relevant laws and regulations governing us or our

business may result in administrative proceedings or legal proceedings against us, including the

revocation or suspension of our IUKU license. New Electricity Law No. 30 and Regulation

14/2012, provide for a range of penal sanctions which may be imposed on us if we fail to comply

with all the duties and obligations imposed on us under such laws and regulations. See

“Regulation of the Indonesian Power Generation Industry—New Electricity Law No. 30—

Obligations of License Holder.” Moreover, our IUKU license may be terminated in certain

circumstances such as the failure to supply electricity, the failure to provide services that meet

required standards of reliability and quality, the failure to provide a safe work environment and

ensure public safety, the non-compliance with, or violation of, conditions contained in our IUKU

license, or in the event the Minister of Energy and Mineral Resources believes such termination is

in the public interest. Any revocation or suspension of our IUKU license would cause us to

completely cease operations and thereby materially adversely affect our business, financial

condition, results of operations and prospects.

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We operate under a Government-regulated tariff regime and are therefore unable tounilaterally adjust the pricing of electricity that we sell, and are subject to uncertainty resultingfrom the change in tariff policy under New Electricity Law No. 30 and Regulation 14/2012.

Under Old Electricity Law No. 15 and its implementing regulation, tariffs for electricity sales

were approved by the Ministry for Energy and Mineral Resources. However, under New Electricity

Law No. 30 and Regulation 14/2012, the Ministry of Energy and Mineral Resources no longer hasthe exclusive authority to set electricity tariffs. Rather, the Ministry of Energy and MineralResources, with the approval of the House of Representatives, will set tariffs for consumers whopurchase from holders of electricity licenses issued by the Ministry of Energy and MineralResources. The regional governments, with the approval of the regional House of Representatives,will be allowed to set different tariffs for consumers who purchase from holders of electricitylicenses issued by the regional governments, provided that such regional tariffs are set inaccordance with national guidelines to be issued by the Ministry of Energy and MineralResources. Moreover, on October 7, 2015, the Coordinating Ministry on the Economy of theRepublic of Indonesia issued a new governmental policy (the “Economic Policy Package”) relatingto, among others, the reduction of certain electricity tariff and gas prices. We therefore operateunder a Government-regulated tariff regime that restricts our ability to control the price of theelectricity that we sell.

Under Regulation 14/2012, the electricity license holder shall submit a request to theMinister of Energy and Mineral Resources, the governor or the regent or mayor, as applicable, toapprove its electricity tariffs. Further guidelines for obtaining approval for tariffs for electricitysales to public consumers will be set out in ministerial regulations, governor regulations orregent/mayor decree. Until such further regulations or decree are issued, it is not yet clear how thenew tariff policy under New Electricity Law No. 30 and Regulation 14/2012 will be implementedor how such implementation will affect our business, financial condition, results of operations orprospects. See “—Risks Relating to Our Business—Customers in the business area served by usmay be able to receive electricity from other sources due to recent regulatory changes andincreased competition.” Currently, we charge our customers based on the ceiling rate set by theGovernment pursuant to Old Electricity Law No. 15 and its implementing regulation but there canbe no assurance that the change in the Government’s tariff policy under New Electricity Law No.30, Regulation 14/2012 and Regulation 23/2014 will not have a significant impact on our resultsof operations by limiting the revenues which we may derive from the generation, transmission anddistribution of electricity, our sole business activity. See “Regulation of the Indonesian PowerGeneration Industry—New Electricity Law No. 30” and “—Risks Relating to GovernmentRegulation—The power generation industry in Indonesia is highly regulated and the implementingregulation for the New Electricity Law No. 30 was only recently issued. The full impact of theNew Electricity Law No. 30 on our business is uncertain.”

Our operations are subject to Indonesian central, provincial and local environmentalprotection laws and regulations and various environmental approvals, licenses or permits arerequired for the operation of our first gas-fired power plant, our second gas-fired power plantand for the construction of our coal-fired plant.

Our operations are subject to Indonesian central, provincial and local environmentalprotection laws and regulations that currently impose base-level discharge fees for variouspolluting substances, graduated schedules of fees for the discharge of waste substances in excessof applicable standards, require the payment of fines or imprisonment for violations of laws,regulations or decrees, require various approvals, licenses or permits for the operation of ourpower plant and provide for the possible closure by the central, provincial or local government ofany power plant which fails to comply with orders requiring it to cease or remedy certainactivities causing environmental damage.

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We are also required to comply with various environmental regulations in Indonesia, to filecertain documents such as the AMDAL, the Environment Management Plan (“RKL”) and theEnvironment Monitoring Plan (“RPL”) concerning the impact of our activities and to report theimplementation of RKL and RPL. In addition, we are required to implement and employ systemsdesigned to monitor and control pollution caused by our electricity generating plant.

We believe that we are in compliance in all material respects with these environmentalprotection laws and regulations and maintain all material environmental permits and licensesrequired by such laws. However, the Government may impose new, stricter laws and regulations,or may change its interpretation or implementation of existing laws, or may require additionalpermits or licenses which would require additional expenditure on environmental protection or thecosts of complying with environmental protection laws may materially increase. For example, onOctober 3, 2009, New Environmental Law No. 32 came into effect and revoked Old EnvironmentLaw No. 23. Under New Environmental Law No. 32 and Regulation 27/2012, a company that wasrequired to obtain an AMDAL approval under the Old Environmental Law No. 23 must obtain anenvironmental permit (izin lingkungan) that will allow it to conduct certain activities related to itsbusiness operations that affect the environment. However, any AMDAL that was approved prior toenactment of Regulation No. 27/2012 shall remain valid and will be deemed to be anenvironmental permit. Accordingly, our AMDAL for our first gas-fired power plant in CikarangJababeka will remain valid and be deemed to be an environmental permit. In June 2012, weinstalled a third GE Frame 9E gas turbine with other ancillary equipment, increasing the plant’sinstalled generation capacity to its current level of 755 MW. We are using the third GE Frame 9Egas turbine as a backup unit which is to be operated as required when any existing gas turbineunit undergoes maintenance or experiences a shutdown and, therefore our AMDAL for our firstpower plant need not to be amended provided the third GE Frame 9E gas turbine satisfies andcontinues to satisfy the following conditions: (i) it is constructed and installed in its originallayout in our first gas-fired power plant; (ii) its operation does not require any additionalsupporting facilities, gas fuel usage or water usage; (iii) it is operated only as a backup,emergency or enhancement power supply to support our first gas-fired power plant; and (iv) itsoperation does not result in electricity production in excess of the maximum permitted electricityproduction of our first gas-fired power plant (that being an average of 540.89 MW and amaximum of 664 MW).

We obtained the AMDAL Recommendation and AMDAL Approval for our coal-fired powerplant in the District of Babelan from the Regent of Bekasi on April 18, 2013 and January 20, 2014respectively. The AMDAL assessment for our second gas-fired power plant in the MM-2100Industrial Estate, District of Cikarang Barat was approved on October 7, 2014. Further, if wedecide to increase the capacity of our first power plant, or fail to comply with the conditions setforth above, our existing AMDAL will need to be revised and approved by the relevantGovernment authority. See “—Risks Relating to Our Business—We may experience delays ordifficulties in obtaining certain Government approvals.”

In addition, we may be subject to liabilities arising from the impact our operations may haveon the environment. Compliance with environmental protection laws and regulations may alsoresult in delays in the expansion and development of our generating station and transmission anddistribution systems. If the costs of complying with environmental protection laws increase or webecome subject, for any reason, to liabilities arising from the impact of our operations on theenvironment, our business, financial condition and results of operations could be materiallyadversely affected. See “Business—Environmental Matters.”

A law requiring agreements involving Indonesian parties to be written in the BahasaIndonesia may raise issues as to the enforceability of English language agreements to which weare a party.

Law No. 24 of 2009 on Flag, Language, Coat of Arms, and National Anthem (“Law No.24/2009”) requires that agreements involving Indonesian parties be written in the BahasaIndonesia language. Where an agreement also involves foreign parties, it may also be executed in

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both the Bahasa Indonesia and a foreign language. Law No. 24/2009 is silent on the governinglanguage if there is more than one language used in a single agreement. Article 40 of Law No.24/2009 states that further stipulation on the use of Bahasa Indonesia shall be regulated by theimplementing regulations to be issued. The Government issued the implementing regulation knownas Government Regulation 57/2014, which was promulgated on July 8, 2014, to give effect tocertain provisions of Law No. 24/2009. While the regulation focuses on the promotion andprotection of the Bahasa Indonesia language and literature and is silent on the question ofcontractual language, it reiterates that contracts involving Indonesian parties must be executed inBahasa Indonesia. On June 20, 2013, the District Court of West Jakarta ruled that an Englishlanguage loan agreement entered into between an Indonesian borrower and a non-Indonesianlender was null and void under Law No. 24/2009 because it had not been drafted in BahasaIndonesia, and was therefore void from the outset, meaning that a valid and binding agreementhad never existed. On May 7, 2014, the Jakarta High Court affirmed the decision andsubsequently, the Supreme Court rejected an appeal to the Jakarta High Court Decision.Government Regulation 57/2014 and Law No. 24/2009 do not specify any sanction fornon-compliance, and Indonesian court decisions are generally not binding precedents and do notconstitute a source of law at any level of the judicial hierarchy, as would typically be the case incommon law jurisdictions. However, there can be no assurance that a court will not, in the future,issue a similar decision to the June 2013 decision in relation to the validity and enforceability ofagreements which are made in the English language.

Pursuant to Law No. 18 of 1999 on Construction Services (“Law No. 18/1999”), constructionagreements involving Indonesian parties shall be made in Bahasa Indonesia, and constructionagreements with foreign parties may be made in Bahasa Indonesia and English. Law No. 18/1999is silent on the applicable governing language if there is an inconsistency between the twolanguages in a single agreement. Violations of this provision may result in administrativesanctions imposed on the construction provider in the form of written warnings, temporaryinjunctions suspending construction work, restrictions on business activities, suspension ofbusiness activities, and revocation of business licenses. Further, the hiring party might also besubject to administrative sanctions in the form of written warnings, temporary injunctionssuspending construction work, restrictions on business activities, temporary prohibitions on the useof the completed projects, suspension of construction licenses, and revocation of constructionlicenses.

Many of our agreements, particularly the contracts related to the construction of our newcoal-fired power plant and our second gas-fired power plant, were prepared in English, includingour agreements with Valmet Technologies Oy, Siemens AG, Germany, Tekniko Singapore, TeknikoIndonesia and PT Silkar National. An electricity supply contract with one of our industrial estatecustomers, namely PT NSK Bearings Manufacturing Indonesia (“NSK”), was also prepared inEnglish. As of the date of this offering circular, we have prepared Bahasa Indonesia versions ofour material construction contracts (other than certain sections relating to engineering and othertechnical matters), each with a contractual amount of US$20 million or more, as well as ourcontract with NSK. Although Law No. 24/2009 and Law No. 18/1999 do not prohibit theexecution of Bahasa Indonesia versions of contracts subsequent to the execution of the Englishversion, there is no assurance that the Indonesian courts would honor the translated versions overthe originals. Moreover, some concepts in the English language may not have a correspondingterm in Bahasa Indonesia, and the exact meaning of the English text may or may not be fullycaptured by the translated version. We cannot assure you that the terms of translated versions ofour English language agreements will be as described in this offering memorandum, or will beinterpreted and enforced by the Indonesian courts as intended, which could result in our incurringadditional expenses with regard to such business arrangements. For example, if defects werediscovered in our construction works, and Law No. 24/2009 or Law No. 18/1999 precludes usfrom enforcing English-language defect liability clauses against the original contractors who

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would otherwise be liable for such defects, we would need to incur substantial expense to engagenew contractors to correct the problem. Should our agreements be held invalid or misinterpreted asa result of Laws No. 24/2009 and 18/1999, our results of operations and financial condition maybe materially and adversely affected.

Indonesian Law requiring agreements involving Indonesian parties to be written in theIndonesian language may raise issues as to the enforceability of agreements entered into inconnection with the offer and sale of the Notes and the guarantees

Although the Indenture governing the Notes and any other agreements will be prepared indual English and Indonesian versions as required under Law No. 24/2009, we cannot assure youthat, in the event of inconsistencies between the Indonesian language and English languageversions of these agreements, an Indonesian court would hold that the English version wouldprevail. Some concepts in the English language may not have a corresponding term in theIndonesian language and the exact meaning of the English text or may not be fully captured bysuch Indonesian version. If this occurs, we cannot assure you that the terms of the Notes,including the Indenture, will be as described in this offering memorandum, or will be interpretedand enforced by the Indonesian courts as intended.

Detailed implementing regulations for Law No. 24/2009 have not been published and LawNo. 24/2009 does not specify any sanction for non-compliance. We cannot predict as to how theimplementation of this new law will impact the validity and enforceability of the Notes and theGuarantees under Indonesian laws. This creates uncertainty as to the ability of holders of Notes toenforce the Notes and the Guarantees in Indonesia.

Risks Relating to Indonesia

Emerging markets such as Indonesia are subject to greater risks than more developedmarkets, and if those risks were to materialize, their consequences could disrupt our businessand you could suffer a significant loss to your investment.

We operate exclusively in Indonesia and have no current plans to expand our businessoutside of Indonesia. Emerging markets such as Indonesia have historically been characterized bypolitical, social and economic conditions which are significantly more volatile than those of moredeveloped economies. Specific risks associated with our location in an emerging market that couldhave a material impact on our business, results of operations, cash flows and financial conditioninclude:

• political, social and economic instability;

• exchange rate volatility;

• acts of warfare, terrorism and civil conflicts;

• state intervention, including tariffs, protectionism and subsidies;

• regulatory, taxation and legal structure changes;

• difficulties and delays in obtaining or renewing licenses, permits and authorizations;

• arbitrary or inconsistent governmental action;

• deficiencies in transportation, energy and other infrastructure; and

• expropriation of assets.

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Generally, investing in emerging markets is only suitable for sophisticated investors who

fully appreciate the significance of the risks involved in investing in such markets. You should

also note that political and related social developments in Indonesia have been unpredictable in

the past, are subject to rapid change and, consequently, the information set out in this offering

memorandum may become outdated relatively quickly. If any of the risks associated with investing

in emerging markets, and in Indonesia in particular, were to materialize, our business, results of

operations and financial condition could be materially adversely affected, and the value of your

investment could decline significantly.

The Indonesian legal system is subject to considerable discretion and uncertainty.

Indonesian legal principles and their practical implementation by Indonesian courts differ

materially from those that would apply within the United States or the European Union.

Indonesia’s legal system is a civil law system based on written statutes as well as judicial and

administrative decisions that do not constitute binding precedent and are not systematically

published or made publicly available. See “Enforceability of Civil Liabilities and Foreign

Judgments.” Indonesia’s commercial and civil laws were historically based on Dutch laws that

were in effect prior to Indonesia’s independence in 1945, and some have not been revised to

reflect the complexities of modern financial transactions and instruments. Indonesian courts may

be unfamiliar with sophisticated commercial or financial transactions, leading to uncertainty in the

interpretation and application of Indonesian legal principles in practice. The application of

Indonesian law depends upon subjective criteria such as the good faith of the parties to the

transaction and principles of public policy, the practical effect of which is difficult or impossible

to predict. Indonesian judges operate in an inquisitorial system, have very broad fact-finding

powers and a high level of discretion in relation to the manner in which those powers are

exercised. In practice, Indonesian court decisions may omit a clear articulation of the legal and

factual analysis of the issues presented in a case. As a result, the administration and enforcement

of laws and regulations by Indonesian courts and Indonesian governmental agencies may be

subject to considerable discretion and uncertainty, which may render our judgment to be inaccurate

on questions such as the enforcement of certain contracts we enter into or the impact on us of

developments or interpretations of Indonesian laws.

Obligations arising under the Currency Law and Bank Indonesia Regulation on theMandatory Use of Rupiah may affect us.

On June 28, 2011, the central Government enacted the Law Number 7 of 2011 on Currency

(the “Currency Law”), which took immediate effect. Article 21(1) of the Currency Law requires

the mandatory use of the Rupiah (as the local currency) in certain transactions conducted in

Indonesia, including all transactions which have a purpose of payment, settlements of obligations

which have to be satisfied with a cash payment and other financial transactions.

However, Article 21(2) provides exemptions for (a) certain transactions related to the

implementation of the State Budget, (b) receipt or grant of offshore grants, (c) international trade

transactions, (d) bank deposits in foreign currency, or (e) international financing transactions.

Article 23 of the Currency Law prohibits any party from refusing to accept Rupiah as payment or

in fulfillment of its obligations, which must be satisfied in Rupiah, and for other financial

transactions in Indonesia except where there is doubt as to the authenticity of the Rupiah paid.

Failure to comply with the Currency Law may result in imprisonment of up to one year and

fines of up to Rp200 million if committed by an individual, and if the violation is committed by a

company, the fines are increased by one-third.

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On March 31, 2015, Bank Indonesia enacted Bank Indonesia Regulation No. 17/3/PBI/2015

on Mandatory Use of Rupiah within the Territory of the Republic of Indonesia (“PBI 17/3/2015”)

as the implementing regulation of the Currency Law, which requires any party to use Rupiah for

any transaction conducted within Indonesia. PBI 17/3/2015 stipulates that a recipient is prohibited

from refusing to receive Rupiah as means of payment or for the settlement of Rupiah obligations

or other financial transactions within Indonesia, unless there is doubt as to the authenticity of the

Rupiah paid in a cash transaction or the settlement of an obligation in a foreign currency has been

agreed to in writing. Article 10 (3) of PBI 17/3/2015 further clarifies that the exemption applies

only for (i) agreements relating to transactions exempted from the mandatory use of Rupiah asreferred to in PBI 17/3/2015 (i.e., international financing transactions); or (ii) agreements for“Strategic Infrastructure Projects” which have been approved by Bank Indonesia.

As an exemption, PBI 17/3/2015 also stipulates that any agreement on the settlement ofobligations in foreign currency which are made prior to July 1, 2015 are still valid until theexpiration of the agreements. This exemption applies only for agreements relating to non-cashpayment or settlement of obligations. However, the exemption will not be applicable for anyextension or amendment of the agreements (particularly any amendments relating to the subject orobject of the agreements).

We have several payment obligations denominated in U.S. Dollars within Indonesia undercertain agreements. Effectively, under PBI 17/3/2015, we are (i) required to adjust the relevantexisting U.S. Dollar denominated agreements to conform with the requirements of PBI 17/3/2015(whenever there is an extension or amendment to those agreements) and (ii) prohibited fromentering into new U.S. Dollar-denominated agreements with counterparties for transactionsconducted within Indonesia.

The elucidation of PBI 17/3/2015 further explains that an “amendment” relates to a changeof “subject” and “object” of the written agreement. However, there is no further explanation as tothe object of the agreement itself. If Bank Indonesia adopts a conservative approach, allamendments after July 1, 2015 to such agreements will be subject to PBI 17/3/2015. A breach ofthe requirements of PBI 17/3/2015 will be subject us to administrative, criminal or monetarysanctions of up to Rp1 billion. The restrictions on our ability to enter into, or renew or amend,our Rupiah-denominated contracts may limit our ability to naturally hedge or service ournon-Rupiah denominated liabilities or to obtain or refinance non-Rupiah financing in the future.

Downgrades of the credit ratings of Indonesia and Indonesian companies could materiallyand adversely affect us and the trading price of the Notes.

Several rating agencies, including Moody’s and Standard & Poor’s, have in the pastdowngraded Indonesia’s sovereign rating and the credit ratings of various credit instruments of theGovernment and a large number of Indonesian banks and other companies. Currently, Indonesia’ssovereign foreign currency long-term debt is rated “Baa3 (stable)” by Moody’s, “BB+ (positive)”by Standard & Poor’s, and “BBB-(stable)” by Fitch. These ratings reflect an assessment of theGovernment’s overall financial capacity to pay its obligations and its ability or willingness to meetits financial commitments as they become due. While the recent trend in Indonesian sovereignratings has been positive, with Moody’s lifting its sovereign credit rating of Indonesia to“investment grade” in 2012 and reaffirming its rating in January 2016, no assurance can be giventhat Moody’s, Standard & Poor’s, Fitch or any other rating agencies will not downgrade the creditratings of Indonesia or Indonesian companies in general in the future. Any such downgrade couldhave an adverse impact on liquidity in the Indonesian financial markets, the ability of theGovernment and Indonesian companies, including us, to raise additional financing and the interestrates and other commercial terms at which such additional financing is available and could have amaterial adverse effect on us and the trading price of the Notes.

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We may be unable to comply with foreign currency hedging and liquidity ratio requirementsunder new Bank Indonesia Regulations relating to the holding of offshore foreign currencydenominated debt by non-bank corporations.

On December 29, 2014, Bank Indonesia issued Bank Indonesia Regulation No.

16/21/PBI/2014 on the Implementation of Prudential Principles in the Management of Non-Bank

Corporation Offshore Borrowings as amended by Bank Indonesia Regulation No. 18/4/PBI/2016

dated April 22, 2016 (“PBI 16/21/2014”) and on March 6, 2015, Bank Indonesia issued the

implementing Circular Letter No. 17/3/DSta, as amended by Circular Letter of Bank Indonesia No.

17/24/DSta dated October 12, 2015. PBI 16/21/2014, which revoked and is an improvement to

Bank Indonesia Regulation No. 16/20/2014, requires borrowers who are non-bank corporations in

Indonesia (“Non-Bank Corporations”) to strengthen their risk management when obtaining offshore

foreign currency denominated debt by ensuring that such entities adopt certain prudential

principles to mitigate the risks related to such offshore foreign currency denominated debt (with

respect to both loans and debt securities).

The specific new measures introduced include requiring Non-Bank Corporations which have

offshore foreign currency denominated debt to (i) comply with certain minimum hedging ratio

requirements (there is an exemption for hedging liability for export-oriented corporations with a

functional currency in USD); (ii) satisfy certain minimum liquidity ratio requirements; and (iii)

satisfy the minimum credit rating criteria equivalent to a Standard & Poor rating of “BB-” issued

by a rating agency recognized by Bank Indonesia.

Exemptions from the requirement to satisfy the minimum credit rating requirement apply for

(i) the refinancing of offshore loans in foreign currency; (ii) offshore loans in foreign currency

from (a) international bilateral or multilateral institutions and (b) syndicated loans with the

contribution of international bilateral or multilateral institutions exceeding 50% in relation to

financing for infrastructure projects; (iii) offshore loans in foreign currency in relation to

government (central and regional) infrastructure projects; (iv) offshore loans in foreign currency

that are guaranteed by international bilateral or multilateral institutions; (v) offshore loans in

foreign currency that are in the form of trade credit, which refers to debt arising from credit that

is granted by offshore suppliers over transactions relating to goods or services; (vi) offshore loans

in foreign currency that are in the form of other loans, which refer to any other loan than loan

based on loan agreement, debt securities and trade credit that are, among others, payment of

insurance claims and unpaid dividends, (vii) offshore debt in foreign currency by a finance

company (a business entity which conducts financing activities for the procurement of goods and

services) to the extent (a) such finance company has minimum financial soundness of “healthy” as

lastly issued by OJK; (b) such finance company fulfills the maximum gearing ratio as regulated by

OJK); or (viii) offshore debt in foreign currency by Lembaga Pembiayaan Ekspor Indonesia

(Indonesia Eximbank). As of January 1, 2016, the minimum hedging ratio is 25.0% and the

minimum liquidity ratio is 70.0%. The requirement to satisfy the minimum credit rating criteria

will only apply to new offshore foreign currency-denominated debt arising from facilities which

are signed or debt securities which are issued on or after January 1, 2016. Furthermore, the

regulation enforces mandatory hedging implementation with domestic banks as of January 1, 2017.

There can be no assurance that we will be able to maintain such ratios in every periodic

report in the future and whether or not we can obtain a minimum credit rating of “BB-” issued by

a rating agency recognized by Bank Indonesia for all offshore foreign currency denominated debt

incurred by us after January 1, 2016. Failure to comply with the requirements of PBI 16/21/2014

would subject us to warning letters from Bank Indonesia and Bank Indonesia disclosing our

non-compliance to its offshore creditors and relevant regulators, which may have an adverse effect

on us going forward.

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Political and social instability in Indonesia may adversely affect us.

As a new democratic country, Indonesia continues to face various socio-political issues and

has, from time to time, experienced political instability and social and civil unrest. Such instances

of unrest have highlighted the unpredictable nature of Indonesia’s political landscape. Although

these demonstrations were generally peaceful, some had turned violent. In particular, increases in

fuel prices or cuts to fuel subsidies have frequently resulted in protests, some of which

contributed to the political instability that led to the resignation of then President Soeharto in

1998, which had adverse effects on businesses in Indonesia. Fuel price protests also occurred in

2001, 2003, 2005, 2008 and 2012. In addition, hundreds of police were stationed in central Jakarta

due to fears of riot after a close presidential election result in 2014, and although no such riots

ultimately occurred, the response underscored perceptions of political tension and instability in

Indonesia. There can be no assurance that any increase in subsidized fuel prices, further cuts infuel subsidies which may happen in the future, or future election disputes or results will not leadto further political and social instability in Indonesia.

Reductions in fuel price subsidies in 2013 and 2015 did not result in any significant violenceor political instability, but the announcement and implementation of the changes coincided with aperiod where crude oil prices had dropped very significantly in 2014. There can be no assurancethat future increases in crude oil and fuel prices will not result in political and social instabilitywhich may adversely affect our business. Our business may be affected by similar Governmentactions including, but not limited to, changes in crude oil or natural gas policy, responses to warand terrorist acts, renegotiation or nullification of existing concessions and contracts, changes intax laws, treaties or policies, the imposition of foreign exchange restrictions and responses tointernational developments.

Political and related social developments in Indonesia have been unpredictable in the past.There can be no assurance that social and civil disturbances will not occur in the future or thatsuch social and civil disturbances will not directly or indirectly, materially and adversely affectour business, financial condition, results of operations and prospects, and the Issuer’s ability tomeet its payment obligations under the Notes or the Parent Guarantor’s ability to meet itsobligations under the Parent Guarantee.

Terrorist attacks and terrorist activities could cause economic and social volatility.

During the last decade there have been various bombing incidents in Indonesia directedtowards the Government and foreign governments and public and commercial buildings frequentedby foreigners, including the Jakarta Stock Exchange Building, Jakarta’s Soekarno-HattaInternational Airport and various hotels in Jakarta, which have killed and injured a significantnumber of people. In addition, in October 2014, the terrorist organization Islamic State of Iraq andthe Levant was reported as conducting recruiting activities in Indonesia. A bombing incident inJakarta on January 14, 2016 has also been reported as linked to the Islamic State of Iraq and theLevant.

There can be no assurance that further terrorist acts will not occur in the future. Suchterrorist acts could destabilize Indonesia and increase internal divisions within the Government asit considers responses to such instability and unrest, thereby adversely affecting investors’confidence in Indonesia and the Indonesian economy. Violent acts arising from and leading toinstability and unrest have in the past had, and could continue to have, a material adverse effecton investment and confidence in, and the performance of, the Indonesian economy, and in turn ourbusiness. Any of the events described above, including damage to our infrastructure or that of ourcustomers, could cause interruption to parts of our business and materially and adversely affectour financial condition, results of operations and prospects.

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Outbreak of an infectious disease, or fear of an outbreak, or any other serious public healthconcerns in Asia (including Indonesia) and elsewhere may adversely impact our business andfinancial condition.

The outbreak of an infectious disease in Asia (including Indonesia) or elsewhere, or fear of

an outbreak, together with any resulting restrictions on travel or quarantines imposed, could have

a negative impact on the economy and business activity in Indonesia and thereby adversely impact

our revenue. Examples include the outbreak in 2003 of Severe Acute Respiratory Syndrome

(“SARS”) in Asia, the outbreak in 2004 and 2005 of Avian influenza, or bird flu, in Asia, the

outbreak in 2009 of influenza H1N1, the outbreak in 2013 of the H7N9 influenza in China, theoutbreak in 2014 of the Ebola virus in West Africa and the outbreak in 2015 of MERS in SouthKorea. There can be no assurance that any precautionary measures taken against infectiousdiseases would be effective. Any recurrence of the recent influenza H1N1, H7N9, SARS oroutbreak of bird flu, Ebola or other contagious disease may adversely affect our business andfinancial condition. A future outbreak of an infectious disease or any other serious public healthconcern in Indonesia may adversely affect our business and financial condition.

Domestic, regional or global economic changes may materially and adversely affect theIndonesian and global economies and our business.

The economic crisis that affected Southeast Asia, including Indonesia, from mid-1997 wascharacterized in Indonesia by, among other effects, currency depreciation, a significant decline inreal gross domestic product, high interest rates, social unrest and extraordinary politicaldevelopments. These conditions had a material adverse effect on Indonesian businesses, includingour business and financial condition. Indonesia entered a recessionary phase with relatively lowlevels of growth in 1999 through 2002. Indonesia’s GDP growth rate has since stabilized at higherlevels in recent years, from 5.6% in 2013 to 4.7% in 2015.

Outside of Indonesia, recent difficulties affecting the global financial sectors, adverseconditions and volatility in the United States and worldwide credit and financial markets,fluctuations in oil and commodity prices and the general weakness of the global economy haveincreased the uncertainty of global economic prospects in general. The global financial marketshave experienced, and may continue to experience, significant turbulence originating from theliquidity shortfalls in the U.S. credit and sub-prime residential mortgage markets since 2008,which have caused liquidity problems resulting in bankruptcy for many institutions, and resultedin major government bailout packages for banks and other institutions. In addition, in 2010, afinancial crisis emerged in Europe, triggered by high budget deficits and rising direct andcontingent sovereign debt in Greece, Ireland, Italy, Portugal and Spain, which created concernsabout the ability of these EU nations to continue to service their sovereign debt obligations. Thecurrent global recovery is proceeding at varying speeds across regions and is still subject todownside risks stemming from factors like fiscal fragility in advanced economies, slowing growthin the developing world, high sovereign debt levels, highly accommodative macroeconomicpolicies and persistent difficulties in access to credit. In particular, concerns regarding thecontinuing global economic uncertainties and slowing growth in the People’s Republic of Chinacontinue to disrupt financial markets and weaken consumer demand in the European Union, theAsia-Pacific Region, the United States and other parts of the world. If unfavorable globaleconomic conditions continue or worsen, this may have a material adverse effect on the continuedexistence, success and growth of our industrial estate customers.

In addition, the Government continues to have a large fiscal deficit and a high level of debt,its foreign currency reserves are modest, and the Rupiah continues to be volatile. We cannotassure you that the recent improvement in economic conditions will continue or the previousadverse economic condition in Indonesia and the rest of the Asia-Pacific region will not occur in

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the future. In particular, a loss of investor confidence in the financial systems of emerging and

other markets, or other factors, may cause increased volatility in the international and Indonesian

financial markets and inhibit or reverse the growth of the global economy and the Indonesian

economy.

While Indonesia’s economy has developed significantly since the Asian economic crisis from

mid-1997 to 2002, there can be no assurance that the recent improvement in economic conditions

and resilience in the face of the global economic slowdown will continue or that previous adverse

economic condition in Indonesia and the rest of the Asia Pacific region will not occur in the

future. In particular, a loss of investor confidence in the financial systems of emerging and other

markets, or other factors, may cause increased volatility in the international and Indonesian

financial markets and inhibit or reverse the growth of the global economy and the Indonesian

economy.

Decentralization of government authority across Indonesia may adversely affect our businessthrough imposition of local restrictions, taxes and levies.

Indonesia is a large and diverse nation covering a multitude of ethnicities, languages,

traditions and customs. During the administration of the former President Soeharto, the central

government controlled and exercised decision making authorities on almost all aspects of national

and regional administration, including the allocation of revenues generated from extraction of

national resources in the various regions. This led to a demand that regional governments be

granted greater authority over regional matters, particularly with respect to the management of

local economic and financial resources. In response to such demand, the Indonesian Parliament in

1999 passed Law No. 22 of 1999 on Regional Government (“Law No. 22/1999”) and Law No. 25

of 1999 on Fiscal Balance between the Central and the Regional Governments (“Law No.

25/1999”). Law No. 22/1999 has been revoked and replaced by the provisions of Regional

Government Law No. 32 of 2004 (“Law No. 32/2004”) as amended by Law No. 8 of 2005 on the

First Amendment of Law No. 32/2004 and Law No. 12 of 2008 on the Second Amendment of Law

No. 32/2004 which has been revoked by Law No. 23 of 2014 on Regional Government, as further

amended by Government Regulation in lieu of Law No. 2 of 2014 on Amendment of Law No. 23

of 2014 and Law No. 9 of 2015 regarding Second Amendment of Law No. 23 of 2014. Law No.

25/1999 has been revoked and replaced by Law No. 33 of 2004 on the Fiscal Balance between the

Central and the Regional Governments, respectively. Under these laws, the establishment of

regional authority was expected to give the regions greater powers and responsibilities over the

use of ‘national assets’ and to create a balanced and equitable financial relationship between

central and local governments. These laws and regulations have changed the regulatory

environment for companies in Indonesia by decentralizing certain regulatory, taxing and other

powers from the central Government to regional governments, but due to a lack of implementing

regulations on areas of regional authority and a lack of government personnel with relevant sector

experience at some regional government levels, there is uncertainty regarding how regional laws

and regulations should be applied. Moreover, limited precedent or other guidance exists on the

interpretation and implementation of the regional authority laws and regulations.

However, under the pretext of regional authority, certain regional governments have put in

place various restrictions, taxes and levies which may differ from restrictions, taxes and levies put

in place by other regional governments or are in addition to restrictions, taxes and levies

stipulated by the central Government. As our principal office is located in Jakarta, a separate

region from West Java where our power plant is located, our business and operations may be

adversely affected by conflicting or additional restrictions, taxes and levies that may be imposed

by the applicable regional authorities. At the provincial level, West Java Province may impose tax

on our utilization of Bekasi and Tarum Barat River.

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Risks Relating to the Notes, the Parent Guarantee and the Offering Structure

Through the purchase of the Notes, the Noteholders may be exposed to a legal system subjectto considerable discretion and uncertainty; it may be difficult or impossible for the Noteholdersto pursue claims under the Notes or the Parent Guarantee.

Indonesian legal principles relating to the rights of debtors and creditors, or their practicalimplementation by Indonesian courts, may differ materially from those that would apply within theUnited States or the European Union. Neither the rights of debtors nor the rights of creditorsunder Indonesian law are as clearly established or recognized as under legislation or judicialprecedent in the United States and most European Union jurisdictions. In addition, underIndonesian law, debtors may have rights and defenses to actions filed by creditors that suchdebtors would not have in jurisdictions such as the United States and the European Union memberstates.

Indonesia’s legal system is a civil law system based on written statutes; judicial andadministrative decisions do not constitute binding precedent and are not systematically published.Indonesia’s commercial and civil laws as well as rules or judicial processes were historicallybased on Dutch law as in effect prior to Indonesia’s independence in 1945, some of which havenot been revised to reflect the complexities of modern financial transactions and instruments.Indonesian courts are often unfamiliar with sophisticated commercial or financial transactions,leading in practice to uncertainty in the interpretation and application of Indonesian legalprinciples. The application of Indonesian laws in large part depends upon subjective criteria suchas the good faith of the parties to the transaction and principles of public policy, the practicaleffect of which is difficult or impossible to predict. Indonesian judges, who operate in aninquisitorial legal system, have very broad fact-finding powers and a high level of discretion inrelation to the manner in which those powers are exercised. As a result, the administration andenforcement of laws and regulations by Indonesian courts and Indonesian governmental agenciesmay be subject to considerable discretion and uncertainty. Furthermore, corruption in the courtsystem in Indonesia has been widely reported in publicly available sources. See, for example,Transparency International, International Corruption Perceptions Index (2006); World Bank,Indonesia: Investing for Growth and Recovery (2006); U.S. Department of State, Indonesia:Country Reports on Human Rights Practices (2005); World Bank, Raising Investment in Indonesia:A Second Generation of Reforms (2005);World Bank, Indonesia: Rapid Growth, Weak Institutions(2004) and the National Bureau of Economic Research, Corruption in Indonesia (2004).

In addition, under the Indonesian Civil Code, a guarantor may waive its right to require theobligee to exhaust its legal remedies against the obligor’s assets prior to the obligee exercising itsrights under the related guarantee, and such waiver is enforceable under Indonesian law. However,due to uncertainty in Indonesian case law related to this issue, if the Issuer were to default on itsobligations under the Notes, there is no assurance that Indonesian courts would not impose anobligation on the Noteholders to pursue all legal remedies against the Issuer before suchNoteholders could exercise their rights under the Parent Guarantee, even though the ParentGuarantor had expressly waived its rights under the Parent Guarantee.

Furthermore, on September 2, 2013, the holders of notes issued by BLD Investments Pte. Ltdand guaranteed by PT Bakrieland Development Tbk (“Bakrieland”), under a trust deed governedunder English law, filed a suspension of debt payment petition with the Commercial Court ongrounds including that Bakrieland had failed to comply with its obligation to repay the principalamount of the notes when noteholders exercised their put option under the terms of the notes. Inits decision dated September 23, 2013, the Commercial Court ruled, among other things, that asthe trust deed relating to the notes is governed by English law, all disputes arising out of or inconnection with the trust deed must be settled by English courts and, accordingly, that the Jakartacommercial court does not have authority to examine and adjudicate this case.

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As a result, it may be difficult for the Noteholders to pursue a claim against the Issuer andthe Parent Guarantor in Indonesia, which may adversely affect or eliminate entirely theNoteholders’ ability to obtain and enforce a judgment against the Issuer and the Parent Guarantorin Indonesia or increase the Noteholders’ costs of pursuing, and the time required to pursue,claims against the Issuer and the Parent Guarantor.

Indonesian companies have filed suits in Indonesian courts to invalidate transactionsinvolving offshore offering structures, and have brought legal action against lenders and othertransaction participants; moreover, such legal action has resulted in judgments against suchdefendants invalidating all obligations under the applicable debt instruments and in damagesagainst such defendants in excess of the amounts borrowed.

In several cases in Indonesian courts, Indonesian companies which had defaulted on notesand other debt incurred through offshore financing entities using a structure involving a guaranteegranted by an Indonesian company, have successfully sued creditors and other transactionparticipants obtaining, among other relief:

• a declaration that the entire debt obligation is null and void;

• disgorgement of prior payments made to holders of the notes on the notes;

• damages from lenders and other transaction participants in amounts exceeding theoriginal proceeds of the debt issued; and

• injunctions prohibiting holders of the notes from enforcing rights under the transactiondocuments and trading in the notes.

Published reports, including those court decisions that are available, do not provide a clearfactual basis or legal rationale for these judgments. In reaching these decisions, however, thecourts have not appeared to follow the contractual selection of non-Indonesian law as thegoverning law. These courts have in certain instances barred the exercise of any remediesavailable to the investors anywhere in the world.

In a June 2006 decision that was released in November 2006, the Indonesian Supreme Courtaffirmed a lower court judgment that invalidated US$500 million of notes issued through anoffshore offering structure (the “June 2006 Decision”). The decision involved an Indonesian listedcompany, PT Indah Kiat Pulp & Paper Tbk. (“Indah Kiat”), an Indonesian listed company, asplaintiff and various parties as the defendants using a structure similar to this offering of theNotes and the Parent Guarantee, whereby notes were issued through a Dutch subsidiary of IndahKiat and guaranteed by Indah Kiat. The Indonesian Supreme Court upheld the decisions of aDistrict Court and High Court in Indonesia in favor of Indah Kiat. The Indonesian courts ruledthat the defendants (including the trustee, underwriter and security agent for the issuance of theIndah Kiat notes) committed a tort (perbuatan melawan hukum) and therefore the issuance of thenotes was declared null and void. The courts nullified the notes by reasoning that the contractsmade in relation to the notes were signed without any legal cause, and so did not meet theprovision of Article 1320 of the Indonesian Civil Code that requires a legal cause as one of theelements for a valid agreement. The Indonesian courts accepted the plaintiff ’s argument that IndahKiat acted both as a debtor and as a guarantor of the same debt even though in the facts of thecase Indah Kiat International Finance Company B.V. (“Indah Kiat BV”), lndah Kiat’s Dutchsubsidiary established for the purpose of the issuance of the notes, was the issuer of the notes andIndah Kiat was the guarantor of such notes. The Indonesian courts also ruled that theestablishment of Indah Kiat BV was unlawful as it was intended to avoid Indonesian withholdingtax payments.

On August 19, 2008, the Indonesian Supreme Court granted a civil review (peninjauankembali) and annulled the June 2006 Decision. The Indonesian Supreme Court in its civil review

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decision stated that Indah Kiat has failed to prove that the transaction is an act of legalmanipulation that caused damages to Indah Kiat. Therefore, the Indonesian Supreme Courtconcluded that the defendants did not commit any unlawful act. Further, the Indonesian SupremeCourt is of the view that it was clear that the money borrowed by Indah Kiat from Indah Kiat BVoriginated from the issuance of notes, as evidenced in the recital of the relevant loan agreementand thus the claim that the whole transaction was a manipulation of law had no merit. Moreover,with regard to the validity and enforceability of the security documents, the Indonesian SupremeCourt stated that the security agreements would prevail as long as the underlying agreements werestill valid and binding. On the tax issues, the civil review decided that the Indonesian SupremeCourt had misapplied the tax law as it did not prohibit tax saving, and thus the claim relating totax was annulled. The civil review also stated that for certain New York law governed agreementsin the transaction (such as the indenture, the loan agreement, the amended and restated loanagreement and the underwriting agreement), the claim should be brought to the appropriate courtin the state of New York.

Despite the decision described above, the Indonesian Supreme Court has taken a contraryview with respect to PT Lontar Papyrus Pulp & Paper Industry (“Lontar Papyrus”), a sistercorporation of Indah Kiat. According to the March 2009 Decision, the Indonesian Supreme Courtrefused a civil review of a judgment by the District Court of Kuala Tungkal, in South Sumatra,which invalidated US$550 million of notes issued by Lontar which was the plaintiff in the courtcase related to the June 2006 decision. Lontar Papyrus’ legal arguments in its lower court casewere fundamentally the same as those in the earlier cases by Indah Kiat — namely, that, under thenotes structure, the plaintiff was acting as both the debtor and guarantor for the same debt and,therefore, the structure was invalid. The Indonesian Supreme Court’s refusal to grant a civilreview of the lower court’s decision effectively affirmed the lower court’s decision to invalidateall of the transaction documents, including Lontar Papyrus’ obligations as the guarantor under thenotes and meaning the verdict is now final. The Indonesian Supreme Court’s refusal to grant thecivil review was based on reasons that the loan agreement between Asia Pulp & Paper CompanyLtd (“APPC”) and Lontar Papyrus and the indenture with regard to the issuance of the notesrequired adjustment to observe the prevailing laws and regulations in Indonesia. In addition, thefact that the loan had been paid in full by Lontar Papyrus to APPC under the relevant loanagreement resulted in Lontar Papyrus having no continuing outstanding legal obligation, either asdebtor under the relevant loan agreement or as guarantor under the indenture. Lontar Papyrus andIndah Kiat are subsidiaries of APPC and their original court cases against their creditors werefiled at approximately the same time. While the lower court decisions in certain of these caseshave been ultimately annulled by the Indonesian Supreme Court, as was the case in August 2008,it appears that the Indonesian Supreme Court has taken a contradictory view on the LontarPapyrus case.

In September 2011, the Indonesian Supreme Court (the “September 2011 Decision”) refused acivil review of a decision by the District Court of Bengkalis (whose judgment was the subject ofthe Indonesian Supreme Court’s June 2006 Decision and August 2008 Decision), which invalidatedthe notes issued by Indah Kiat BV. The facts and legal claims presented by Indah Kiat BV weresubstantially the same as those made by Indah Kiat in the lower court cases that were the subjectof the June 2006 Decision. The September 2011 Decision specifically noted that the IndonesianSupreme Court chose to not consider its August 2008 Decision despite such substantially similarfacts and legal claims.

The Indonesian Supreme Court’s refusal to grant civil reviews of the lower court decisions inthe March 2009 Decision and September 2011 Decision effectively affirmed the lower courts’decisions and such lower court decisions are now final and not subject to further review.

The Indonesian court decisions are not binding precedents and do not constitute a source oflaw at any level of the judicial hierarchy as in common law jurisdictions such as the United Statesand the United Kingdom. This means that while lower courts are not bound by the IndonesianSupreme Court decision, such decisions have persuasive effect. Therefore, there can be no

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assurance that in the future a court will not issue a similar decision to the June 2006 Supreme

Court decision mentioned above in relation to the validity and enforceability of the Notes and the

Parent Guarantee or grant additional relief to the detriment of holders of the Notes, if the Issuer

were to contest efforts made by holders of the Notes to enforce these obligations.

Therefore, the holders of the Notes may have difficulty in enforcing any rights under the

Notes, the Parent Guarantee or the other transaction documents in Indonesia, where most of the

Parent Guarantor’s assets are located. Moreover, depending on the recognition which

non-Indonesian courts may grant to such Indonesian decisions, the holders of the Notes may also

be disabled from enforcing any rights under the Notes, the Parent Guarantee or the othertransaction documents, or collecting on the Issuer’s or the Parent Guarantor’s assets, anywhereelse in the world. In sum, the holders of the Notes may have no effective or practical recourse orany assets or legal process in Indonesia to enforce any rights against us or the Issuer.

In addition, the participation of a holder of a Note as a creditor in this transaction mayexpose it to affirmative judgments by Indonesian courts against it (beyond the value of the Notessuch holder of a Note purchased). Moreover, affirmative relief granted against the holders of theNotes by Indonesian courts may be enforced by non-Indonesian courts against the assets of theholders of the Notes (or other transaction participants) located outside of Indonesia (and eachholder of a Note should consult its own lawyer in that regard).

An Indonesian court has limited certain rights of the trustee, acting on behalf of the holdersof U.S. dollar bonds, in relation to the parent guarantor, in a decision that affected the holders’rights and the terms of the bonds in connection with a debt restructuring of the parentguarantor.

On December 8, 2014, the Supervisory Judge in proceedings before the Commercial Court ofthe Central Jakarta District Court determined that noteholders were not creditors of PT BakrieTelecom Tbk. (“Bakrie Tel”) for purposes of its court-supervised debt restructuring, known as aPKPU (the “Bakrie Tel PKPU”). Bakrie Tel, an Indonesian telecommunications company, is theguarantor of US$380 million of senior notes issued in 2010 and 2011 by a Singapore-incorporatedspecial purpose vehicle that is a subsidiary of Bakrie Tel. The proceeds from the offering of thenotes were on-lent to Bakrie Tel pursuant to an intercompany loan agreement, which wasguaranteed by Bakrie Tel and assigned to the noteholders as collateral. In its decision affirmingthe composition plan, the Commercial Court accepted the Supervisory Judge’s determination thatthe relevant creditor of Bakrie Tel in respect of the US$380 million notes was the issuersubsidiary, rather than the noteholders or the trustee, and gave no effect to the guarantee. As such,only the intercompany loan was recognized by the Commercial Court as indebtedness on whichBakrie Tel was liable for purposes of the Bakrie Tel PKPU. As a result, only the issuer subsidiaryhad standing as a Bakrie Tel creditor to vote in the Bakrie Tel PKPU proceedings, whichsubstantially altered the terms of the U.S. dollar bonds and the guarantee.

Similar with the Bakrie Tel PKPU case, an Indonesian company, PT Trikomsel Oke Tbk(“Trikomsel”), in early 2016 was entered into a suspension of payment obligation (PKPU) underthe Indonesia bankruptcy law regime. The PKPU administrators were reported to reject claims thatarose from their two Singaporean Dollar bonds and have taken the stance that the trustees do nothave any standing to make claims on behalf of the bondholders. Further, they asserted that onlyindividual noteholders that had filed claims on their own would be able to participate in the PKPUproceedings and to vote on the restructuring plan. Various sources indicate that the PKPUadministrators have instead acknowledged Trikomsel’s affiliates’ intercompany loan, by which theproceeds of bond issuance have been streamed through. The PKPU process has been extendedseveral times, most recently to September 15, 2016. Therefore, discussion on the restructuring planis still ongoing.

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It may be difficult or impossible for Noteholders to enforce all, or any, of their rights undera guarantee provided by an Indonesian guarantor such as the Parent Guarantor, including but notlimited to being able to vote in court-supervised debt restructuring or bankruptcy proceedings inIndonesia. It is also possible that the Indonesian courts may disallow the Trustee to make claimson behalf of the Noteholders in such restructuring or bankruptcy proceedings. Further, noassurance can be given that the Indonesian courts will recognize all or part of a guaranteeprovided by an Indonesian guarantor in these proceedings. Indonesia’s legal system is a civil lawsystem based on written statutes in which judicial and administrative decisions do not constitutebinding precedent and are not systematically published and Indonesian judges have very broadfact-finding powers and a high level of discretion with respect to the manner in which thosepowers are exercised, and may be guided less by legal principles and precedent than would theircounterparts in other jurisdictions.

The Indonesia-Netherlands tax treaty may be applied in a manner adverse to CikarangListrindo’s interests.

The statutory rate of withholding tax in Indonesia in respect of payments of interest by anIndonesian tax resident to a non-Indonesian tax resident is currently 20%. Under the tax treatybetween Indonesia and The Netherlands adopted on January 1, 2004 (the “Indo-Ned Tax Treaty”),payments of interest under loans such as the Intercompany Loan are exempt from suchwithholding tax if the recipient of the interest does not have a permanent establishment inIndonesia, the interest is paid on loans with a term of more than two years and the recipient is thebeneficial owner of the interest income. See “Taxation—Indonesian Taxation—Withholding Tax.”In relation to the Indo-Ned Tax Treaty, the Indonesian Tax Authority (“ITA”) issued circularSE-17/PJ/2005 on June 1, 2005 (the “June 2005 Tax Circular”) in which it stated that theexemption from withholding tax is not applicable due to the absence of a mutually agreed(between the governments of The Netherlands and Indonesia) mode of application for theIndo-Ned Tax Treaty’s interest article. Therefore, the June 2005 Tax Circular provides that thetreaty rate of withholding tax in respect of payments of interest under loans such as theIntercompany Loan is 10%. However, the Indonesian Directorate General of Taxation (the “DGT”)issued two key tax regulations dated November 5, 2009 (Regulations Nos. 61/PJ/2009 and62/PJ/2009), which became effective on January 1, 2010 (the “November 2009 Tax Regulations”),as subsequently amended by Regulations No. 24/PJ/2010 and 25/PJ/2010 dated April 30, 2010 (the“April 2010 Tax Regulations”). The November 2009 Tax Regulations revoke and replace the June2005 Tax Circular and relate to the application of tax treaty benefits. Under the November 2009Tax Regulations and the April 2010 Tax Regulations, if it is determined that:

• an income recipient is not the beneficial owner of the income (e.g., the income recipientis merely an agent or a nominee or a conduit company);

• a transaction does not have economic substance and is structured with the sole purposeof enjoying tax treaty benefits; or

• a transaction is structured such that the legal form is at variance with the economicsubstance for the sole purpose of enjoying tax treaty benefits,

a taxpayer’s entitlement to withholding tax benefits under an applicable tax treaty will be voidedand the 20% statutory withholding tax rate will be applied. See “Taxation—IndonesianTaxation—Withholding Tax.”

On July 30, 2015, the Netherlands and Indonesia signed a protocol (the “Protocol”) to amendthe Indo-Ned Tax Treaty. Under the Protocol, interest payments on loans that qualify for thewithholding exemption under the current Indo-Ned Tax Treaty would instead be subject to a 5%withholding tax and a holder would still need to avoid falling into one of the three categories inthe bullet points above in order to be eligible for the 5% rate. We do not know when the Protocolwill be ratified by both countries and enter into force. See �Taxation — Indonesian Taxation —New Protocol to Indonesia-Netherlands Tax Treaty.�

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The Issuer will use a substantial portion of the net proceeds of the offering of the Notes toredeem the 2019 Notes and pay for related premium fees and expenses. It will contribute theremaining net proceeds of this offering of Notes (if any) to Signal Capital, which will thenon-lend the proceeds of such contribution to the Parent Guarantor pursuant to the IntercompanyLoan. Signal Capital will receive payments under the Intercompany Loan and certain otherintercompany loans from the Parent Guarantor. The Issuer would then be dependent upondividends or other distributions or payments from Signal Capital, or contributions or loans fromthe Parent Guarantor or may need to enter into other arrangements such that it would havesufficient cash flows to make payments due on the Notes.

Because the Protocol has not been entered into force, the Parent Guarantor currently does notintend to withhold on the interest payments it makes to Signal Capital under the IntercompanyLoan and certain other intercompany loans. However, there has not been any precedent on thewithholding tax treatment under the November 2009 Tax Regulations or the April 2010 TaxRegulations and the Parent Guarantor has not sought a ruling on this issue from the Indonesian taxauthorities. The Indonesian tax authorities may challenge whether interest payments made underthe Intercompany Loan and certain other intercompany loans to the Parent Guarantor qualify forthe withholding exemption provided by the Indo-Ned Tax Treaty. There is uncertainty as towhether Signal Capital would qualify as a beneficial owner of interest income under the November2009 Tax Regulations, the April 2010 Tax Regulations and the Protocol, and there is no assurancethat interest on the Intercompany Loan and certain other intercompany loans to the ParentGuarantor will qualify for the withholding tax benefits allowed under the Indo-Ned Tax Treaty. Inthe event that withholding tax is found to apply, any late payment of tax will be subject to aninterest penalty of 2% per month.

In the event that none of the withholding tax exemption, the 5% withholding tax rate or the10% withholding tax rate applies to interest payments on the Intercompany Loan or certain otherintercompany loans made by Signal Capital to the Parent Guarantor, or in the event that the ParentGuarantor makes interest payments under the Parent Guarantee, the statutory 20% withholding taxrate would apply. In such a scenario, under the terms of the Notes, the Issuer or the ParentGuarantor would, subject to certain exceptions, be required to pay such additional amounts as willresult in receipt by the Holder of such amounts as would have been received by such Holder hadno such withholding or deduction been required. The requirement to pay additional amounts willincrease the cost of servicing interest payments on the Notes, could impose a significant burdenon the Parent Guarantor’s cash flows and could have a material adverse effect on the ParentGuarantor’s financial condition and results of operations, and the Issuer’s ability to pay intereston, and repay the principal amount of, the Notes.

The Parent Guarantor is incorporated in Indonesia, and it may not be possible forNoteholders to effect service of process or to enforce certain judgments on the ParentGuarantor outside of Indonesia.

The Parent Guarantor is a limited liability company incorporated in Indonesia. All of itscommissioners and directors reside in Indonesia and all of its assets and operations are located inIndonesia. As a result, it may be difficult for Noteholders to effect service of process, includingjudgments, on the Parent Guarantor or its commissioners and directors outside of Indonesia, or toenforce judgments obtained in non-Indonesian courts against the Parent Guarantor or itscommissioners and directors.

The Parent Guarantor has been advised by its Indonesian legal counsel that judgments ofnon-Indonesian courts are not directly enforceable in Indonesian courts, although such judgmentscould be admissible as non-conclusive evidence in a proceeding on the underlying claim in anIndonesian court and may be given such evidentiary weight as the Indonesian court may deemappropriate in its sole discretion. There is doubt as to whether Indonesian courts will enterjudgments in original actions brought in Indonesian courts predicated solely upon civil liability or

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jurisdictions other than Indonesia. As a result, Noteholders would be required to pursue claims

against the Parent Guarantor or its commissioners and directors in Indonesian courts. The claims

or remedies available under Indonesian law may not be the same, or as extensive, as those

available in other jurisdictions. See also “Enforceability of Civil Liabilities and Foreign

Judgments”.

Enforcing Noteholders’ rights under the Notes or the Parent Guarantee across multiplejurisdictions may be difficult.

The Notes will be issued by the Issuer, which is incorporated under the laws of The

Netherlands, and guaranteed by the Parent Guarantor, which is established under the laws of

Indonesia. The Notes, the Parent Guarantee and the Indenture will be governed by the laws of the

State of New York. In the event of a bankruptcy, insolvency or similar event, proceedings could

be initiated in The Netherlands, Indonesia and the United States. Such multi-jurisdictional

proceedings are likely to be complex and costly for creditors and otherwise may result in greater

uncertainty and delay regarding the enforcement of your rights. Your rights under the Notes and

the Parent Guarantee will be subject to the insolvency and administrative laws of several

jurisdictions and there can be no assurance that you will be able to effectively enforce your rights

in such complex multiple bankruptcy, insolvency or similar proceedings.

Furthermore, the bankruptcy, insolvency, administrative and other laws of The Netherlands,

Indonesia and the United States may be materially different from, or be in conflict with, each

other and those with which you may be familiar, including in the areas of rights of creditors,

priority of governmental and other creditors, ability to obtain post-petition interest and duration of

the proceeding. The application of these laws, or any conflict among them, could call into

question whether any particular jurisdiction’s laws should apply, adversely affect your ability to

enforce your rights under the Notes and the Parent Guarantee in the relevant jurisdictions or limit

any amounts that you may receive. Furthermore, although the Parent Guarantor believes that the

Parent Guarantee is enforceable, a third party creditor may decide to challenge the Parent

Guarantee and prevail in court.

We may be subject to future bankruptcy, insolvency and similar proceedings in Indonesia, theNetherlands, or other jurisdictions, which may delay or prevent payment on the Notes.

Under the Indonesian Bankruptcy Law, a debtor who has two or more creditors and who is

unable to repay its debts may be declared bankrupt by virtue of a Commercial Court decision. In

addition, a creditor that foresees its debtor would not be able to continue to pay its debts when

they become due and payable, or a debtor which is unable, or predicts that it would be unable, to

pay its debts when they become due and payable, may file for suspension of payment of debt with

the Commercial Court. Creditors are unlikely to receive any payment during the course of the

bankruptcy or suspension of debt payment proceeding (with the exception of secured creditors

subject to certain conditions), up until new payment schedule under the composition plan, or the

distribution of bankruptcy estate. It is likely that the bankruptcy estate is insufficient to fully

settle claims of all creditors. Under the Indonesian Bankruptcy Law, a suspension of debt payment

proceeding takes priority over a bankruptcy proceeding and must be decided first. As such, a

suspension of debt payment proceeding will effectively postpone the bankruptcy proceeding.

During the bankruptcy or suspension of debt payment proceeding, the debtor may propose a

composition plan to its creditors. Such composition, if approved at a creditors’ meeting and

ratified by the Commercial Court, will be binding on: (a) all unsecured creditors (in the event of

bankruptcy); and (b) all unsecured creditors and secured creditors that voted for the composition

plan (in the event of suspension of debt payment), and the bankruptcy or suspension

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of debt payment proceeding ends. The debtor can then continue its business and service its debt inaccordance with the composition plan proposed by the debtor and approved at the creditors’meeting and ratified by the court. The secured creditors that did not attend the creditors’ meetingor vote on the plan are not bound by the plan and are entitled to enforce their security interests.

As a composition plan may be approved by majority of the creditors on a collective basis, itmay not be in the best interest of any particular creditor. If the Parent Guarantor becomes a debtorin a bankruptcy proceeding or a suspension of debt payment proceeding in Indonesia, the ParentGuarantor may file for suspension of debt payment with a proposed composition plan which maynot be satisfactory to the unsecured creditors. If such composition plan is approved, it will bebinding on the unsecured creditors.

Where a company has its “centre of main interests” in the Netherlands, it may be subjectedto insolvency proceedings in this jurisdiction. This is particularly relevant for the Issuer andSignal Capital, which have their corporate seat (statutaire zetel) in Amsterdam, The Netherlands,and which are therefore presumed (subject to proof to the contrary) to have their “centre of maininterests” in the Netherlands.

Dutch insolvency law differs significantly from insolvency proceedings in the United Statesand other jurisdictions, and may make it more difficult to recover the amount they would normallyexpect to recover in a liquidation or bankruptcy proceeding in the United States or anotherjurisdiction.

There are two primary insolvency regimes under Dutch law applicable to legal entities: thefirst, suspension of payments (surseance van betaling), is intended to facilitate the reorganisationof a debtor’s indebtedness and enable the debtor to continue as a going concern. The second,bankruptcy (faillissement), is primarily designed to liquidate and distribute the proceeds of theassets of a debtor to its creditors. Both insolvency regimes are set forth in the Dutch BankruptcyAct. The consequences of both proceedings are roughly equal from the perspective of a creditor,with creditors being treated on a pari passu basis subject to exceptions.

In suspension of payments and bankruptcy proceedings under Dutch law secured creditors(and in case of suspension of payment also preferential creditors (including tax and social securityauthorities)) may enforce their rights against assets of the company to satisfy their claims as ifthere were insolvency proceedings. A recovery under Dutch law could, therefore, involve a sale ofassets that does not reflect the going concern value of the debtor. Consequently, potentialinvestors’ potential recovery could be reduced in Dutch insolvency proceedings.

In a suspension of payments and in bankruptcy, a composition (akkoord) may be offered tocreditors. A composition will be binding on all unsecured and non-preferential creditors if it is (i)approved by a simple majority of the creditors being present or represented at the creditors’meeting, representing at least 50.0% of the amount of the claims that are admitted for votingpurposes, and (ii) subsequently ratified (gehomologeerd) by the Dutch courts. Consequently, Dutchinsolvency laws could preclude or inhibit the ability of the holders of the Notes to effect arestructuring and could reduce the recovery of a holder of Notes.

The Dutch Bankruptcy Act does not in itself recognize the concept of classes of creditors.Remaining amounts, if any, after satisfaction of the secured and the preferential creditors aredistributed among the unsecured non-preferential creditors, who will be satisfied on a pro ratabasis. Contractual subordination may to a certain extent be given effect in Dutch insolvencyproceedings, with the actual effect largely depending on the way such subordination is construed.

The unsubordinated Parent Guarantee will be effectively subordinated to any securedobligations of the Parent Guarantor to the extent of the assets serving as security therefor.

The Parent Guarantee will constitute unsubordinated obligations of the Parent Guarantor andwill rank pari passu in right of payment with all other existing and future unsubordinatedindebtedness of the Parent Guarantor and senior in right of payment to all subordinatedindebtedness of the Parent Guarantor, including its obligations under the Intercompany Loan. TheParent Guarantee will be issued as a general obligation of the Parent Guarantor, pursuant toArticle 1131 of the Indonesian Civil Code. However, the Parent Guarantee will be effectively

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subordinated to any secured obligations of the Parent Guarantor to the extent of the assets servingas security therefor. In bankruptcy, the holder of a security interest with respect to any assets of aGuarantor would be entitled to have the proceeds of such assets applied to the payment of suchholder’s claim before the remaining proceeds, if any, are applied to the claims of the Noteholders.

Substantial leverage and debt service obligations could adversely affect Parent Guarantor’sbusiness and prevent the Issuer and the Parent Guarantor from fulfilling obligations under theNotes and the Parent Guarantee.

Subject to limitations under the Indenture and under the terms of the Notes, the Issuer andthe Parent Guarantor will be permitted to incur additional indebtedness in the future. For asummary of Parent Guarantor’s certain existing indebtedness as of the date of this offering, see“Description of Existing Indebtedness.” The degree to which the Parent Guarantor will beleveraged in the future could have important consequences for the Noteholders, including, but notlimited to:

• making it more difficult for the Issuer and the Parent Guarantor to satisfy theirrespective obligations with respect to the Notes and the Parent Guarantee;

• increasing the Parent Guarantor’s vulnerability to, and reducing its flexibility to respondto, general adverse economic and industry conditions;

• requiring the dedication of a substantial portion of cash flow from operations to thepayment of principal of, and interest on, the Parent Guarantor’s indebtedness, therebyreducing the availability of such cash flow to fund working capital, capitalexpenditures, acquisitions, joint ventures or other general corporate purposes;

• limiting flexibility in planning for, or reacting to, changes in the Parent Guarantor’sbusinesses, the competitive environment and the industries in which Cikarang Listrindooperates; and

• limiting the Parent Guarantor’s ability to borrow additional funds and increasing thecost of any such borrowing.

Any of these or other consequences or events could materially and adversely affect theParent Guarantor’s ability to satisfy debt obligations, including the Notes and the ParentGuarantee.

The Parent Guarantor will be subject to restrictive debt covenants that may limit its ability tofinance its future operations and capital needs and to pursue business opportunities andactivities.

The Indenture will, among other things, restrict the ability of Parent Guarantor and theability of its subsidiaries which are restricted subsidiaries to:

• incur or guarantee additional indebtedness and issue certain preferred stock;

• make certain payments, including dividends or other distributions, with respect to ParentGuarantor’s shares;

• prepay or redeem subordinated debt or equity;

• make certain investments and capital expenditures;

• create encumbrances or restrictions on the payment of dividends or other distributions,loans or advances to and on the transfer of assets;

• sell, lease or transfer certain assets, including stock of restricted subsidiaries;

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• engage in certain transactions with shareholders or affiliates of Parent Guarantor;

• create or incur certain liens;

• impair the security interests for the benefit of the Noteholders;

• enter into unrelated businesses or engage in prohibited activities; and

• consolidate or merge with other entities.

All of these limitations will be subject to significant exceptions and qualifications. See“Description of the Notes—Certain Covenants.” These covenants could limit the ParentGuarantor’s ability to finance its future operations and capital needs or pursue businessopportunities and activities that may be in its interest. Any future inability to incur additional debtcould materially and adversely affect its business, financial conditions, results of operations andprospects.

Any future subsidiary guarantee may be challenged under applicable financial assistance,insolvency or fraudulent transfer laws, which could impair the enforceability of such futuresubsidiary guarantee.

Under bankruptcy laws, fraudulent transfer laws, financial assistance, insolvency or unfairpreference or similar laws in Indonesia or where any future subsidiary guarantor is incorporatedand where all of its significant assets are located (as well as under the laws of certain otherjurisdictions to which, in certain circumstances, any future subsidiary guarantor may be subject),the enforceability of a guarantee may be impaired if certain statutory conditions are met. Inparticular, a guarantee may be voided, or claims in respect of a guarantee could be subordinated toall other debts of that guarantor, if it can be proven that the guarantor at the time it incurred theindebtedness evidenced by, or when it gives, its guarantee, knew or should have known that theindebtedness would result in damages to its creditors, including among other things, if theguarantor:

• incurred the debt with the intent to hinder, delay or defraud creditors or was influencedby a desire to put the beneficiary of the guarantee in a position which, in the event ofthe guarantor’s insolvency, would be better than the position the beneficiary would havebeen in had the guarantee not been given;

• received less than reasonably equivalent value or fair consideration for the incurrence ofsuch guarantee;

• received no commercial benefit;

• was insolvent or rendered insolvent by reason of such incurrence;

• was engaged in a business or transaction for which the guarantor’s remaining assetsconstituted unreasonably small capital; or

• intended to incur, or believed that it would incur, debts beyond its ability to pay suchdebts as they mature.

The test for insolvency, the other particular requirements for the enforcement of any relevantfraudulent transfer law or other law of similar effect, and the nature of the remedy if a fraudulenttransfer is found, may vary depending on the law of the jurisdiction which is being applied.

If a court voided any future subsidiary guarantee, or held any future subsidiary guaranteeunenforceable for any other reason, then Noteholders would cease to have a claim against suchfuture subsidiary guarantor based upon such future subsidiary guarantee, and would solely becreditors of the Issuer. If a court subordinated any future subsidiary guarantee to otherindebtedness of such future subsidiary guarantor, then claims under a future subsidiary guarantee

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would be subject to the prior payment of all liabilities (including trade payables). There can be noassurance that, after providing for all prior claims, there would be sufficient assets to satisfy theclaims of Noteholders.

The Issuer is a finance company that will be dependent on dividend payments and/or otherdistributions or payments from Signal Capital, or contributions or loans from the ParentGuarantor, to provide it with funds to meet its obligations under the Notes.

The Issuer was formed for engaging in financing transactions, including the issuance of the2019 Notes, the Notes in this offering and in future securities offerings. The Issuer is a financingcompany that has no other business operations and upon completion of this offering of Notes andthe transfer of the remaining net proceeds of this offering of Notes (if any) to Signal Capital, theIssuer’s only material asset will be the share capital of Signal Capital and rights under one ormore intercompany loans to Signal Capital. See “Use of Proceeds” and “The Issuer.”

Furthermore, the Indenture governing the Notes will prohibit the Issuer from engaging in anyactivities other than certain limited activities described in “Description of the Notes—CertainCovenants—Limitation on the Activities of the Issuer.” There is no direct contractual claim orobligation between the Issuer and the Parent Guarantor in relation to the Intercompany Loan andother intercompany loans made by Signal Capital to the Parent Guarantor. As such, the Issuer willbe dependent upon dividends or other distributions or payments from Signal Capital orcontributions or loans from the Parent Guarantor or may need to enter into other arrangementssuch that it would have sufficient cash flows to make payments due on the Notes.

Immediately upon completion of this offering of Notes, Signal Capital will have no materialassets other than the Intercompany Loan and certain other intercompany loans to the ParentGuarantor. Signal Capital is a Restricted Subsidiary and is subject to all of the covenantsapplicable to Restricted Subsidiaries. In addition, it is subject to certain additional restrictionsunder the Indenture. However, unlike the Issuer, Signal Capital is not a financing company and theprohibition on the Issuer from engaging in activities other than certain limited activities does notapply to Signal Capital. Accordingly, Signal Capital would be permitted under the Indenture toengage in certain activities that could give rise to other obligations that may cause it to be unableto make payments to the Issuer in amounts sufficient for the Issuer to make payments due on theNotes, even if the Parent Guarantor made the required payments to Signal Capital under theIntercompany Loan and other intercompany loans made by Signal Capital. As of the date of thisoffering memorandum, Signal Capital’s business operations involve providing intra-group advisoryservices in the field of renewable energy and group treasury activities. Furthermore, there is nocontractual requirement obligating Signal Capital to pay dividends, or repay any shareholder loans,to the Issuer, and there can be no assurance that Signal Capital will make such payments to theIssuer in the ordinary course of business. Moreover, payment of dividends and/or payment of sharepremium and/or other reserves by Signal Capital may only be made to the extent Signal Capital’snet assets exceed the sum of the amount of the paid and called-up portion of its capital and thereserves, which it must maintain under Dutch law or its articles of association. However, there canbe no assurance that these conditions will be met to allow Signal Capital to make dividendpayments or repay share premium to the Issuer in the future. In the event that any of the abovewere to occur, the Issuer will need to rely on contributions or loans from the Parent Guarantor tomeet its payment obligations under the Notes.

We will require a significant amount of cash to meet our obligations under our indebtednessand to sustain our operations, which we may not be able to generate or raise.

Our ability to make payments on our indebtedness, including the Notes and amounts underthe Parent Guarantee and our contractual obligations (see “Description of Existing Indebtedness”),and to fund our ongoing operations, will depend on our future performance and our ability togenerate cash, which to a certain extent is subject to general economic, financial, competitive,legislative, legal, regulatory and other factors, as well as other factors discussed in this “RiskFactors” section, many of which are beyond our control. If our future cash flows from operationsand other capital resources are insufficient to pay our debt obligations, including the Notes or

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amounts under the Parent Guarantee, our contractual obligations, or to fund our other liquidityneeds, we may be forced to sell assets or attempt to restructure or refinance our existingindebtedness. We may not be able to accomplish any of these measures on a timely basis or onsatisfactory terms or at all.

The Issuer may not have the ability to raise the funds necessary to finance an offer torepurchase your Notes upon the occurrences of certain events constituting a change of controlas required by the Indenture.

Upon the occurrence of certain events constituting a change of control and a decline in therating of the Notes, the Issuer is required to offer to repurchase all outstanding Notes at apurchase price in cash equal to 101% of their principal amount plus accrued and unpaid interest tothe date of purchase. If a change of control were to occur, no assurance can be given that theIssuer would have sufficient funds available at such time to pay the purchase price of theoutstanding Notes. The failure to repurchase the Notes pursuant to such an offer could cause adefault under the Indenture, even if the change of control itself does not.

The change of control provision contained in the Indenture may not necessarily afford youprotection in the event of certain important corporate events, including a reorganization,restructuring, merger or other similar transaction involving the Parent Guarantor that mayadversely affect you, because such corporate events may not involve a shift in voting power orbeneficial ownership or, even if they do, may not constitute a “Change of Control” as defined inthe Indenture. Except as described under “Description of the Notes—Repurchase of Notes Upon aChange of Control Triggering Event,” the Indenture does not contain provisions that require theIssuer to offer to repurchase or redeem the Notes in the event of a reorganization, restructuring,merger, recapitalization or similar transaction.

The definition of “Change of Control” contained in the Indenture includes a disposition of allor substantially all of the assets of the Parent Guarantor and its restricted subsidiaries taken as awhole to any person. Although there is a limited body of case law interpreting the phrase “all orsubstantially all,” there is no precise established definition of the phrase under applicable law.Accordingly, in certain circumstances there may be a degree of uncertainty as to whether aparticular transaction would involve a disposition of “all or substantially all” of the assets of theParent Guarantor and its restricted subsidiaries taken as a whole. As a result, it may be unclear asto whether a change of control has occurred and when the Issuer is required to make an offer torepurchase the Notes.

The Parent Guarantor or the Issuer may incur additional indebtedness and this could furtherexacerbate the risks described above.

Subject to restrictions in the Indenture governing the Notes, the Parent Guarantor or theIssuer may incur additional indebtedness.

Covenants in agreements governing additional debt that may be incurred by the ParentGuarantor or the Issuer in the future may materially restrict the Parent Guarantor’s operations,including its ability to incur debt, pay dividends, make certain investments and payments, andencumber or dispose of assets. In addition, financial covenants contained in agreements relating tothe future debt of the Parent Guarantor or the Issuer, including those under future creditagreements, could lead to a default in the event that the Parent Guarantor’s results of operationsdo not meet its plans. A default under one debt instrument may also trigger cross-defaults underother debt instruments of the Parent Guarantor or the Issuer. An event of default under any debtinstrument, if not cured or waived, could have a material adverse effect on the Parent Guarantoror the Issuer, and any new debt incurred in the future could have important consequences to theNoteholders. For example, it could:

• make it more difficult for the Parent Guarantor or the Issuer to satisfy their respectiveobligations under the Notes and the Parent Guarantee;

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• increase our vulnerability to general adverse economic and industry conditions;

• limit our ability to fund future working capital, capital expenditures, research anddevelopment and other general corporate requirements;

• require us to dedicate a substantial portion of our cash flows from operations to servicepayments on its debt;

• limit our flexibility to react to changes in our business and the industry in which itoperates;

• place us at a competitive disadvantage to any of our competitors that have less debt;

• require us to meet additional financial covenants; and

• limit, along with other restrictive covenants, among other things, our ability to borrowadditional funds.

The ratings assigned to the Notes or the Parent Guarantor may be lowered or withdrawnentirely in the future.

The ratings assigned to the Notes or the Parent Guarantor may be lowered or withdrawnentirely in the future. The Notes and the Parent Guarantor are expect to be rated “Ba2” byMoody’s and “BB” by S&P. The ratings address the Issuer’s and the Parent Guarantor’s ability toperform their respective obligations under the terms of the Notes and the Parent Guarantee and thecredit risks in determining the likelihood that payments will be made when due under the Notes. Arating is not a recommendation to buy, sell or hold securities and may be subject to revision,suspension or withdrawal at any time. No assurances can be given that a rating will remain forany given period of time or that a rating will not be lowered or withdrawn entirely by the relevantrating agency if in its judgment circumstances in the future so warrant. The Issuer has noobligation to inform the Noteholders of any such revision, downgrade or withdrawal. Asuspension, reduction or withdrawal at any time of the rating assigned to the Notes or the ParentGuarantor may adversely affect the market price of the Notes.

Your investment in the Notes may be subject to foreign exchange risks.

The Notes are denominated and payable in U.S. Dollars. If you measure your investmentreturns by reference to a currency other than U.S. Dollars, an investment in the Notes entailsforeign exchange-related risks, including possible significant changes in the value of the U.S.Dollars relative to the currency by reference to which you measure your investment returns, dueto, among other things, economic, political and other factors over which the Parent Guarantor hasno control. Depreciation of the U.S. Dollar against the currency by reference to which youmeasure your investment returns could cause a decrease in the effective yield of the Notes belowtheir stated coupon rates and could result in a loss to you when the return on the Notes istranslated into the currency by reference to which you measure your investment returns. Inaddition, there may be tax consequences for you as a result of any foreign exchange gainsresulting from any investment in the Notes.

There is no public market for the Notes and we do not know if a market will ever developor, if a market does develop, whether it will be sustained.

Approval-in-principle has been received for the listing and quotation of the Notes on theSGX-ST. However, the Notes constitute a new issue of securities for which there is no existingmarket. Although the Initial Purchasers have advised us that they currently intend to make amarket in the Notes, they are not obligated to do so, and any market-making activity with respectto the Notes, if commenced, may be discontinued at any time without notice at their solediscretion. For a further discussion of the Initial Purchasers’ planned market-making activities, see“Plan of Distribution.”

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No assurance can be given as to the liquidity of, or the development and continuation of anactive trading market for, the Notes. If an active trading market for the Notes does not develop oris not maintained, the market price and liquidity of the Notes may be adversely affected. If such amarket were to develop, the Notes could trade at prices that may be higher or lower than the priceat which the Notes have been issued. The price at which the Notes trade depends on many factors,including:

• prevailing interest rates;

• our results of operations, financial condition and future prospects;

• political and economic developments in and affecting Indonesia;

• the market conditions for similar securities;

• changes in the credit ratings of the Notes or the Parent Guarantor; and

• the financial condition and stability of the Indonesian financial sector.

The transfer of Notes is restricted which may adversely affect their liquidity and the price atwhich they may be sold.

The Notes and the Parent Guarantee have not been registered under, and the Issuer is notobligated to register the Notes or the Parent Guarantee under, the Securities Act or the securitieslaws of any other jurisdiction and, unless so registered, may not be offered or sold exceptpursuant to an exemption from or a transaction not subject to, the registration requirements of theSecurities Act and any other applicable laws. See “Plan of Distribution” and “TransferRestrictions.” The Issuer and the Parent Guarantor have not agreed to, or otherwise undertaken, toregister the Notes or the Parent Guarantee (including by way of an exchange offer), and have nointention of doing so.

The Notes will initially be held in book entry form, and therefore you must rely on theprocedures of the relevant clearing systems to exercise any rights and remedies.

The Notes will initially only be issued in global certificated form and held through DTC andits participants, including Euroclear and Clearstream. Interests in the Global Notes will trade inbook entry form only, and Notes in definitive registered form, or definitive registered Notes, willbe issued in exchange for book entry interests only in very limited circumstances. Owners of bookentry interests will not be considered owners of the Notes or Noteholders. The custodian for DTCwill be the sole registered holder of the Global Notes representing the Notes. Payments ofprincipal, interest and other amounts owing on or in respect of the Global Notes representing theNotes will be made to the paying agent which will make payments to DTC. Thereafter, thesepayments will be credited to accounts of participants (including Euroclear and Clearstream) thathold book entry interests in the Global Notes representing the Notes and credited by suchparticipants to indirect participants. After payment to the custodian for DTC, the Issuer will haveno responsibility or liability for the payment of interest, principal or other amounts to the ownersof book entry interests. Accordingly, if you own a book entry interest, you must rely on theprocedures of DTC, Euroclear or Clearstream, and if you are not a participant in DTC, Euroclearor Clearstream, on the procedures of the participant through which you own your interest, toexercise any rights and obligations of a Noteholder under the Indenture.

Unlike the Noteholders themselves, owners of book entry interests will not have the directright to act upon the Issuer’s solicitations for consents, requests for waivers or other actions fromthe Noteholders. Instead, if you own a book entry interest, you will be permitted to act only to theextent you have received appropriate proxies to do so from DTC, Euroclear or Clearstream. Theprocedures implemented for the granting of such proxies many not be sufficient to enable you tovote on a timely basis.

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Similarly, upon the occurrence of an event of default under the Indenture, unless and untildefinitive registered Notes are issued in respect of all book entry interests, if you own a bookentry interest, you will be restricted to acting through DTC, Euroclear or Clearstream. Theprocedures to be implemented through DTC, Euroclear or Clearstream may not be adequate toensure the timely exercise of rights under the Notes.

Applicable OJK regulations may restrict our ability to issue additional debt securities.

On November 28, 2011, Bapepam-LK Regulation IX.E.2 on Material Transactions andChange of Core Business was issued, which replaced the previous regulation issued in 2009 (the“Material Transactions Regulation”). This regulation is applicable to publicly listed companies inIndonesia and their unlisted consolidated subsidiaries. Pursuant to the Material TransactionsRegulation, each borrowing and lending in one transaction or a series of related transactions for aparticular purpose or activity having a transaction value of 20% to 50% of the publicly listedcompany’s equity, as determined by the latest audited annual financial statements, semi-annuallimited reviewed financial statements or audited interim financial statements (if any), must beannounced to the public and the listed company must also prepare an appraisal report. Theannouncement relating to the material transaction must be made to the public in at least oneIndonesian language daily newspaper having national circulation no later than the end of thesecond business day after the date of execution of the agreement(s) related to the MaterialTransaction. The announcement is required to include a summary of the transaction, anexplanation of the considerations and reasons for such material transaction and the effect of thetransaction on the company’s financial condition, a summary of the appraisal report (including itspurpose, the object, the parties involved, the assumptions, qualifications and methodology used inthe appraisal report, the conclusion on the value of the transaction, and the fairness opinion on thetransaction), which must not be dated more than six months prior to the date of the materialtransaction, the amount borrowed or lent, and a summary of the terms and conditions of theborrowing or lending. Publicly listed companies must submit evidence of an announcement asreferred to above, including the independent appraisal report to OJK at the latest by the end of thesecond business day after the date of execution of the agreement(s) related to the MaterialTransaction.

Subject to certain exceptions under the Material Transactions Regulation, a materialtransaction (in this case, borrowing and lending) with a value in excess of 50% of a company’sequity must be approved by shareholders holding more than half of all shares with valid votingrights who are present or represented, and more than half of such shareholders present orrepresented approve the transaction, in addition to fulfilling the appraisal disclosure requirements.Pursuant to the Articles of Association of the Parent Guarantor, the shareholders meeting may beconvened if attended by the shareholders or its authorized proxies representing more than 2/3(two-third) of the amount of issued shares with voting rights. The shareholders meeting resolutionsare valid and binding if such resolution is approved by 2/3 (two-third) of the amount of issuedshares with voting shares casted at the shareholders meeting. The Parent Guarantor obtained theapproval of its shareholders for this offering on August 26, 2016.

The aggregate transaction value of the offering of the Notes will exceed the 50.0% threshold.Accordingly, in connection with this offering, we are required to obtain and submit to OJK anappraisal report from an independent appraiser (registered with OJK), a summary of which isrequired to be published in a newspaper announcement two business days after the date of signingof the agreements related to the offering of the Notes, including the Purchase Agreement and theIndenture. We have appointed an independent appraiser, Jennywati, Kusnanto, dan rekan to preparethis appraisal report, which we expect to be completed on or before the issue date of the Notes.

If we decide to issue additional debt securities other than through a public offering inIndonesia, and the amount issued exceeds the 50% threshold, we would be required to obtainshareholders’ approval, as well as a new appraisal report. There is no assurance that we would beable to obtain the approval of our shareholders or a favorable appraisal report in order to issue

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such additional debt securities. This requirement could limit our ability to finance our future

operations and capital needs, or pursue business opportunities or activities that may be in our

interest. Any limitation on our ability to raise funds to finance our operations could materially and

adversely affect our business, financial condition, results of operations and prospects.

Holders of the Notes will not have voting rights.

Holders of the Notes do not have any right to vote at any of our shareholders’ meetings.

Consequently, holders of the Notes cannot influence any decisions by our board of directors or

any decisions by shareholders concerning our capital structure, including the declaration of

dividends in respect of our ordinary shares.

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USE OF PROCEEDS

The proceeds from this offering, before deducting the Initial Purchasers’ discount and other

expenses payable in connection with this offering, will be US$550.0 million. The Issuer plans to

use a substantial portion of the proceeds from this offering of Notes (net of the Initial Purchasers’

discount and other expenses payable in connection with this offering) to redeem in full the

outstanding 6.9500% senior notes due 2019 (the “2019 Notes”) issued by the Issuer and

guaranteed by the Parent Guarantor pursuant to an indenture dated February 21, 2012 (the “2019

Indenture”) among the Issuer, the Parent Guarantor and the Trustee and pay for related premium,

fees and expenses. As of the date of this offering memorandum, there was US$500 million

aggregate principal amount of 2019 Notes outstanding. The Issuer will contribute the remaining

net proceeds of the offering of Notes to Signal Capital by way of share contribution on new

and/or existing shares of, and/or a loan to, Signal Capital, which will then on-lend the proceeds of

such contribution to the Parent Guarantor pursuant to the Intercompany Loan. The Parent

Guarantor plans to use any such remaining net proceeds for working capital.

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EXCHANGE RATES AND EXCHANGE CONTROLS

Exchange Rates

Bank Indonesia is the sole issuer of the Indonesian Rupiah and is responsible for maintainingthe stability of the Indonesian Rupiah. Since 1970, Indonesia has implemented three exchange ratesystems: (i) a fixed rate between 1970 and 1978, (ii) a managed floating exchange rate systembetween 1978 and 1997 and (iii) a free-floating exchange rate system since August 14, 1997.Under the second system, Bank Indonesia maintained the stability of the Indonesian Rupiahthrough a trading band policy, pursuant to which Bank Indonesia would enter the foreign currencymarket and buy or sell Indonesian Rupiah, as required, when trading in the Indonesian Rupiahexceeded bid and offer prices announced by Bank Indonesia on a daily basis. On August 14, 1997,Bank Indonesia terminated the trading band policy and permitted the exchange rate for theIndonesian Rupiah to float without an announced level at which it would intervene, which resultedin a substantial decrease in the value of the Indonesian Rupiah relative to the U.S. Dollar. Underthe current system, the exchange rate of the Rupiah is determined solely by the market, reflectingthe interaction of supply and demand in the market. Bank Indonesia may take measures, however,to maintain a stable exchange rate.

The following table shows the Rupiah-U.S. Dollar exchange rate based on the middleexchange rate at the end of each year or month, as the case may be, during the periods indicated.The Rupiah middle exchange rate is calculated based on Bank Indonesia’s buying and sellingrates. We do not make any representations that the Rupiah or U.S. Dollar amounts referred to inthis document could have been or could be converted into U.S. Dollars or Rupiah, as the case maybe, at the rate indicated or any other rate or at all.

Low(1) High(1) Average(2) Period Ended

2010 .................................................................................. 9,365 8,924 9,078 8,991

2011 .................................................................................. 9,185 8,460 8,779 9,068

2012 .................................................................................. 9,670 9,000 9,419 9,670

2013 .................................................................................. 12,270 9,634 10,451 12,189

2014 .................................................................................. 12,900 12,440 11,879 12,440

2015 .................................................................................. 14,728 12,444 13,392 13,795

2016 .................................................................................

January .......................................................................... 13,946 13,835 13,889 13,846

February ........................................................................ 13,757 13,333 13,516 13,395

March ............................................................................ 13,367 13,020 13,193 13,276

April.............................................................................. 13,238 13,096 13,179 13,204

May ............................................................................... 13,333 13,162 13,262 13,311

June ............................................................................... 13,695 13,166 13,355 13,180

July ............................................................................... 13,172 13,086 13,119 13,094

August (until August 24) ............................................... 13,252 13,080 13,134 13,252

Source: Indonesia Economic and Financial Statistics (Statistik Ekonomi Dan Kewargan Indonesia) published monthly by

Bank Indonesia and available at www.bi.go.id

Notes

(1) For full years, the high and low amounts are determined based upon the month-end middle exchange rate announced

by Bank Indonesia during the year indicated. The high and low monthly figures are determined based on the daily

middle exchange rates during the month indicated.

(2) For full years, the average shown is calculated based on the middle exchange rate announced by Bank Indonesia on

the last day of each month during the year indicated. For monthly averages, the average shown is calculated based

on the daily middle exchange rates during the month indicated.

64

The middle exchange rate on June 30, 2016 was Rp13,180 = US$1.00. The Federal ReserveBank of New York does not certify for customs purposes a noon buying rate for cable transfers inRupiah.

Exchange Controls

Indonesia has limited foreign exchange controls. Foreign currency is generally freelytransferable within or from Indonesia. However, to maintain the stability of the Rupiah, and toprevent the utilization of the Rupiah for speculative purposes by non-residents, Bank Indonesiahas introduced regulations to restrict the movement of Rupiah to banks domiciled outsideIndonesia or to an offshore branch or office of an Indonesian bank, or any investment in Rupiahdenomination with foreign parties or Indonesian citizens domiciled or permanently residing outsideIndonesia, thereby limiting offshore trading to existing sources of liquidity. In addition, BankIndonesia has the authority to request information and data concerning the foreign exchangeactivities of all persons and legal entities that are domiciled, or plan to be domiciled in Indonesiafor at least one year.

Pursuant to Bank Indonesia Regulation No. 16/22/PBI/2014 regarding Reporting on ForeignExchange Activities and Reporting on the Implementation of Prudential Principles in theManagement of Non-Bank Corporation Offshore Borrowings (“PBI 16/22/2014”), all Indonesianresidents who engage in foreign exchange traffic activities, whether individuals or legal entities,must report (i) any trading of goods, services or other transactions between Indonesian citizensand non-citizens, (ii) positions and changes to offshore financial assets or offshore financialliabilities and (iii) offshore borrowing transactions to Bank Indonesia. Bank Indonesia requiresreports to be submitted monthly through an online system by the 15th day of the following month,at the latest. In the event a correction is required, the correction must be submitted through theonline system no later than the 20th day of the reporting month. For offshore borrowings, thereport shall be submitted at the beginning of each year, no later than March 15, and anyamendment thereto by no later than July 1.

In addition to reporting on foreign exchange activities, for the purposes of implementingprudential principles in relation to offshore borrowings as required by Bank Indonesia RegulationNo. 16/21/PBI/2014 dated December 29, 2014 regarding the Implementation of PrudentialPrinciples in the Management of Non-Bank Corporation Offshore Borrowings as amended by BankIndonesia Regulation No. 18/4/PBI/2016 dated April 22, 2016 (“PBI 16/21/2014”) which had beenimplemented by the Circular Letter of Bank Indonesia No. 17/3/DSta dated March 6, 2015regarding the Reporting on the Implementation of Prudential Principles in the Management ofNon-Bank Corporation Offshore Borrowings, as amended by Circular Letter of Bank Indonesia No.17/24/DSta dated October 12, 2015, Indonesian non-bank corporations are required to provide thefollowing documents:

1. the prudential principle implementation activity report (“KPPK report”), which is to besubmitted on a quarterly basis, no later than the end of the third month;

2. the KPPK report, attested by a public accountant, which is to be submitted no later thanthe end of June after the end of the current financial year;

3. information on the fulfillment of credit ratings, which is to be submitted by the end ofthe month following the execution or issuance of the offshore borrowings; and

4. the financial statements of the company, consisting of (i) unaudited financial statements,which must be submitted on a quarterly basis and no later than the end of the thirdmonth, and (ii) annual audited financial statements, which must be submitted by no laterthan the end of June of the following year.

65

Bank Indonesia examines the accuracy of foreign exchange traffic reports and the prudentialprinciple implementation activity reports and may impose administrative sanctions, such as writtenwarnings. It may also report violations to other authorities due to any delay or failure regardingthe submission of such reports.

As of January 1, 2016, submissions of and corrections to the prudential principleimplementation activity report shall be made online. The requirement to submit credit ratingsfulfillment only applies to offshore borrowings executed or issued as of January 1, 2016.

Indonesian Law on Currency and Obligation to Use Rupiah in Indonesian Territory

On June 28, 2011, the Indonesian House of Representatives passed Law No. 7 of 2011concerning the use of Rupiah (the “Currency Law”), and on March 31, 2015, Bank Indonesiaissued Bank Indonesia Regulation No. 17/3/PBI/2015 on the Obligation to Use Rupiah in theTerritory of Indonesia (“PBI 17/3/2015”) which was implemented by a Circular Letter of BankIndonesia No. 17/11/DKSP on June 1, 2015 (“SEBI17/11/2015”). Under PBI 17/3/2015, each partyis required to use Rupiah for cash and non-cash transactions conducted within the territory ofIndonesia, including for (i) each transaction with the purpose of payment, (ii) settlement of otherobligations which must be satisfied with money or (iii) other financial transactions (includingdeposits of Rupiah in various amounts and types from customers to banks). Subject to furtherrequirements under PBI 17/3/2015, the obligation to use Rupiah does not apply to (i) certaintransactions relating to the implementation of state revenue and expenditure, (ii) the receipt orprovision of grants either from or to an overseas source, (iii) international trade transactions,including (a) export or import of goods to or from outside Indonesia and (b) activities relating tocross border trade in services, (iv) bank deposits denominated in foreign currencies, (v)international financing transactions and (vi) transactions in a currency other than Rupiahconducted in accordance with applicable laws, including, among others (x) a bank’s businessactivities in a currency other than Rupiah conducted based on applicable laws regardingconventional and sharia banks, (y) securities in a currency other than Rupiah issued by theGovernment in a primary or secondary market based on applicable laws and (z) other transactionsin a currency other than Rupiah conducted based on applicable laws, including the law regardingBank Indonesia, the law regarding investment and the law regarding Lembaga Pembiayaan EksporIndonesia (Indonesia Eximbank).

In addition, the Currency Law and PBI 17/3/2015 also prohibits any party from rejectingRupiah that are made as a means of payment to settle obligations with respect to other financialtransactions within Indonesia, unless there is uncertainty regarding the authenticity of the Rupiahwhich is received in respect to cash transactions, or the parties to the transaction have agreed inwriting to the payment or settlement of obligations in a foreign currency. Article 10 of PBI17/3/2015 further explains that the exemption based on such a written agreement between theparties is only applicable to an agreement made with respect to one of the above exemptedtransactions or transactions related to a strategic infrastructure project.

PBI 17/3/2015 takes effect from March 31, 2015, and the requirement to use Rupiah fornon-cash transactions will be effective from July 1, 2015. Written agreements which were signedprior to July 1, 2015 that contain provisions for the payment or settlement of obligations in acurrency other than Rupiah for non-cash transactions will remain effective until the expiration ofsuch agreements. However, any extension or amendment of such agreements must comply withPBI and prohibitions from undertaking payment activities.

Further, SEBI 17/11/2015 stipulates that conditional exemptions may apply to certaininfrastructure projects, such as electricity infrastructure, including power plants, including powerdevelopment sourcing from geothermal and transmission or distribution of electricity. Theseexemptions apply if (a) the project has been declared by the central or regional government as astrategic infrastructure project, as evidenced by a formal confirmation letter from the relevantministry/institution with regards to the project owner; and (b) an exemption approval has beenobtained from Bank Indonesia.

66

A failure to comply with the obligation to use Rupiah in cash transactions will result incriminal sanctions against the offender, in the form of fines and imprisonment. While a failure tocomply with the obligation to use Rupiah in non-cash transactions will be subjected toadministrative sanctions in the form of (i) written warnings, (ii) fines, or (iii) prohibition fromundertaking payment activities. Bank Indonesia may also recommend to the relevant authority torevoke the business license or stop the business activities of the party which fails to comply withthe obligation to use Rupiah in non-cash transactions.

Purchasing of Foreign Currencies against Rupiah through Banks

On September 17, 2014, Bank Indonesia issued Bank Indonesia Regulation No.16/16/PBI/2014 on the Purchase of Foreign Currency Against Rupiah Transactions between Banksand Domestic Parties as most recently amended by Bank Indonesia Regulation No. 17/15/PBI/2015(“PBI 16/16/2014”), as implemented by the Circular Letter of Bank Indonesia No. 16/14/DPM asmost recently amended with Circular Letter Bank Indonesia No. 17/49/DPM, dated December 21,2015. Under PBI 16/16/2014, the conversion of Rupiah to one or more foreign currencies or thepurchase of a currency other than Rupiah in an amount exceeding US$100,000 per month (or itsequivalent) by an Indonesian company must be based on an underlying transaction, which isdefined as an activity the basis for which currencies other than Rupiah are purchased. The amountof currencies other than Rupiah that will be purchased may not exceed the nominal value of theunderlying transaction. These thresholds are: (i) the purchase of more than US$100,000 per monthper customer or its equivalent of foreign exchange against Rupiah for spot transactions andderivative transactions other than forward and options transactions; and (ii) the purchase of morethan US$1,000,000 per month per customer or its equivalent of foreign exchange against Rupiahfor forward or option transactions.

The following transactions may be deemed underlying transactions under PBI 16/16/2014: (i)domestic and international trade of goods and services or (ii) investments such as directinvestment, portfolio investments, loans, capital and other investments inside and outsideIndonesia. Underlying transactions do not include (i) the placement of funds in banks in the formof, among others, saving accounts, demand deposit accounts, time deposits, and negotiablecertificate deposits or (ii) money transfer activities by remittance companies.

Indonesian companies purchasing foreign currencies in excess of the equivalent ofUS$100,000 will be required to submit certain supporting documents to the selling bank including,among others, the relevant underlying transaction document and a duly stamped statementconfirming that the underlying agreement is valid and that the currency being purchased will onlybe used for settlement of the payment obligations under the underlying agreement. For purchasesof foreign currency not exceeding the equivalent of US$100,000, such company must declare in aduly stamped letter that its aggregate foreign currency purchases do not exceed the equivalent ofUS$100,000 per month in the Indonesian banking system.

As of November 10, 2014, this regulation supersedes Bank Indonesia Regulation No.10/28/PBI/2008, Bank Indonesia Regulation No. 10/37/PBI/2008 and Bank Indonesia RegulationNo. 11/14/PBI/2009.

On September 17, 2014, Bank Indonesia issued Bank Indonesia Regulation No.16/17/PBI/2014 regarding Foreign Exchange to Rupiah Transaction between Banks and ForeignParties as lastly amended by Bank Indonesia Regulation No. 17/16/PBI/2015 dated October 7,2015 (“PBI 16/17/2014”), as implemented by the Circular Letter of Bank Indonesia No.16/15/DPM as amended by Circular Letter No. 17/16/DPM dated 12 June 2015. While PBI16/16/2014 and PBI 16/17/2014 collectively govern foreign exchange transactions against Rupiahin Indonesia, PBI 16/16/2014 governs Indonesian bank customers, whereas PBI 16/17/2014governs foreign exchange transactions by banks and foreign parties.

Similar to PBI 16/16/2014, PBI 16/17/2014 also requires an underlying transaction for aforeign exchange transaction against Rupiah if it exceeds specified thresholds. These thresholds

67

are: (i) a purchase of foreign exchange against Rupiah of more than US$100,000 per month per

customer for spot transactions; and (ii) the purchase of foreign exchange against Rupiah of more

than US$1 million per month per customer for derivative transactions. PBI 16/17/2014 has a single

threshold amount for derivative transactions of US$1 million per month per customer for any kind

of derivative transaction.

The following transactions may be deemed underlying transactions under PBI 16/17/2014: (i)

domestic and international trade of goods and services; and/or (ii) investments in the forms of

direct investment, portfolio investments, loans, capital and other investments inside and outside

Indonesia.

As of November 10, 2014, PBI 17/17/2015 supersedes Bank Indonesia Regulation No.

7/14/PBI/2005, Bank Indonesia Regulation No. 14/10/2012 and Bank Indonesia Regulation No.

16/9/PBI/2014.

On May 14, 2014, Bank Indonesia issued Bank Indonesia Regulation No. 16/10/PBI/2014 on

Receiving and Withdrawing Foreign Currencies from Export Activities and Foreign Loans as

amended by Bank Indonesia Regulation No. 17/23/PBI/2015 dated December 20, 2015(“PBI

16/10/2014”) which implemented by Bank Indonesia Circular Letter No. 18/5/DSta on the Receipt

of Offshore Debt dated April 6, 2015. Based on PBI 16/10/2014, any borrowings of offshore loans

(in a currency other than Rupiah) that originate from (i) non-revolving loan agreements, (ii) a

difference between the new loan and the refinanced loan for refinancing purposes, or (iii) debt

securities must be received through foreign exchange banks (which include offshore bank branches

in Indonesia) and must be reported to Bank Indonesia. The aggregate amount of the offshore loan

receipt should be equal to the local commitments provided under such loans. In the event that

there is any difference in excess of Rp50 million (or its equivalent in foreign currencies) between

the offshore loan receipt and the local commitments or the offshore loan withdrawals, the offshore

borrower must submit a written explanation and supporting documents to Bank Indonesia.

Withdrawals of the above foreign loans must be reported to Bank Indonesia on the 15th day of

every month. These reports shall include supporting documents detailing the respective portions of

the foreign loans that were receipt from the foreign exchange bank. Administrative sanctions will

be imposed on companies that fail to comply with such reporting obligations.

68

CAPITALIZATION AND INDEBTEDNESS

The following table shows our consolidated capitalization and indebtedness:

• on an actual basis as of June 30, 2016; and

• as adjusted to give effect to the offering of the Notes (before deducting the Initial

Purchasers’ discount and other expenses payable in connection with this offering) and

the application of such proceeds as described in “Use of Proceeds.”

We derived this table from our Indonesian FAS financial statements contained in this offering

memorandum. You should read this information in conjunction with our audited and unaudited

consolidated financial statements and the related notes included elsewhere in this offering

memorandum and the sections in this offering memorandum entitled “Selected Financial

Information and Other Data” and “Management’s Discussion and Analysis of Financial Condition

and Results of Operations.”

As of June 30, 2016

Actual As Adjusted(1)

(US$ in thousands)

Cash and cash equivalents(2): ................................................................................ 226,282.2 253,791.3

Indebtedness:

Notes offered hereby(2) ......................................................................................... — 550,000.0

2019 Notes payable............................................................................................... 496,100.9 —

Total indebtedness ............................................................................................... 496,100.9 550,000.0

Shareholders’ equity:

Share capital - Rp200 par value per share

Authorized - 57,913,760,000 shares

Issued and fully paid - 16,087,156,000 shares............................................... 282,002.2 282,002.2

Additional paid-in capital...................................................................................... 148,848.0 148,848.0

Changes in fair value of available-for-sale investments ......................................... 5.5 5.5

Retained earnings.................................................................................................. 185,522.1 185,522.1

Total Equity ......................................................................................................... 616,377.7 616,377.8

Total capitalization and indebtedness (3) ............................................................. 1,112,478.6 1,166,377.8

(1) There has been no material change in our capitalization since June 30, 2016, except as discussed above.

(2) Before deducting the Initial Purchasers’ discount and other expenses payable in connection with the offering.

(3) Represents summation of total indebtedness and total shareholders’ equity.

69

SELECTED FINANCIAL INFORMATION AND OTHER DATA

You should read the selected financial and other data presented below in conjunction with

our consolidated financial statements, related notes to the consolidated financial statements, and

other financial information, contained in this offering memorandum. You should also read the

section of this offering memorandum entitled “Management’s Discussion and Analysis of Financial

Condition and Results of Operations.”

The selected consolidated financial information of the Parent Guarantor as of December 31,

2013, 2014 and 2015 and for the years then ended, presented below, has been derived from our

audited consolidated financial statements as of December 31, 2013, 2014 and 2015 and for the

years then ended, included elsewhere in this offering memorandum. Our selected consolidated

financial information as of June 30, 2016 and for the six-month periods ended June 30, 2016 and

2015, presented below, has been derived from our unaudited interim consolidated financial

statements as of June 30, 2016 and for the six-month periods ended June 30, 2016 and 2015,

included elsewhere in this offering memorandum.

Our audited consolidated financial statements as of December 31, 2013, 2014 and 2015 and

for the years then ended have been audited by PSS, independent auditors, in accordance with

Standards on Auditing established by the IICPA, as stated in their audit report appearing elsewhere

in this offering memorandum. Our unaudited interim consolidated financial statements as of June

30, 2016 and for the six-month periods ended June 30, 2016 and 2015, have been reviewed by

PSS, independent auditors, in accordance with SRE 2410, established by the IICPA, as stated in

their review report appearing elsewhere in this offering memorandum. A review is substantially

less in scope than an audit conducted in accordance with Standards on Auditing established by

IICPA and therefore PSS do not express an audit opinion on such financial information.

Our audited and unaudited consolidated financial statements, which are prepared in

accordance with Indonesian FAS and presented in U.S. Dollars, are not intended to present our

consolidated financial position, financial performance, or cash flows in accordance with

accounting principles generally accepted in countries and jurisdictions other than those in

Indonesia. Indonesian FAS differ in significant respects from U.S. GAAP. In making an investment

decision, you should rely upon your own examination of us, the terms of the Offering and the

financial information contained in this offering memorandum. You should consult your own

professional advisors for an understanding of the differences between Indonesian FAS and U.S.

GAAP, and how such differences could affect the financial information contained in this offering

memorandum. See “Summary of Significant Differences between Indonesian FAS and U.S. GAAP”

included elsewhere in this offering memorandum for a description of summary of significant

differences between Indonesian FAS and U.S. GAAP.

70

Consolidated Statements of Profit or Loss and Other Comprehensive Income

For the year ended December 31,

For the six-month period

ended June 30,

2013(1)

2014(1) 2015 2015 2016

(US$ thousands) (unaudited)

Net Sales

Industrial estates ....................................... 357,613.3 383,466.6 381,810.6 186,395.5 200,181.3

PT Perusahaan Listrik Negara (Persero)

(PLN) ................................................... 144,163.9 161,241.6 166,084.4 84,184.7 74,486.9

Total Net Sales ........................................ 501,777.2 544,708.2 547,895.0 270,580.3 274,668.2

Cost of Sales ............................................ (354,081.1) (359,245.5) (362,448.5) (180,553.0) (181,603.7)

Gross Profit ............................................. 147,696.1 185,462.7 185,446.5 90,027.3 93,064.4

General and administrative expenses ......... (29,268.6) (38,084.0) (37,998.8) (18,084.3) (21,543.9)

Selling expenses ....................................... (4,281.7) (4,300.1) (4,225.1) (1,948.1) (2,202.4)

Other income ............................................ 956.3 1,049.0 475.8 455.7 274.8

Other expenses.......................................... (24,624.8) (6,957.5) (12,126.9) (7,639.2) (1,022.6)

Profit from Operations Before Income

Tax and Finance Costs ........................ 90,477.4 137,170.1 131,571.5 62,811.4 68,570.3

Finance costs ............................................ (33,831.8) (29,496.7) (24,841.6) (9,823.4) (8,433.9)

Interest income ......................................... 7,388.8 5,790.0 1,901.4 1,261.7 532.6

Final tax on interest income...................... (1,477.8) (1,158.0) (380.3) (252.3) (106.5)

Profit Before Income Tax ........................ 62,556.7 112,305.4 108,251.0 53,997.4 60,562.5

Income Tax Benefit (Expense)

Current ..................................................... (4,867.5) (29,583.2) (24,834.7) (9,865.0) (17,523.3)

Deferred ................................................... (14,520.8) 1,687.6 (3,405.7) (2,050.0) 71,124.2

Final tax on revaluation of property, plant

and equipment ...................................... — — — — (7,646.8)

Income Tax Benefit (Expense) ................. (19,388.4) (27,895.6) (28,240.4) (11,915.0) 45,954.1

Profit for the Period ............................... 43,168.3 84,409.8 80,010.6 42,082.4 106,516.6

Other Comprehensive Income (Loss)

Item that may be reclassified to profit or

loss:

Changes in fair value of available-for-sale

investments ........................................... 417.8 (620.1) 14.8 14.8 7.3

Income tax relating to changes in fair

value of available-for-sale investments . (122.2) 155.0 (3.7) (3.7) (1.8)

295.6 (465.1) 11.1 11.1 5.5

Items that will not be reclassified to

profit or loss: ......................................

Remeasurement gain (loss) on estimated

liability for employee benefits .............. 513.0 (2,711.1) (983.6) 915.2 (320.8)

Income tax relating to remeasurement

gain (loss) on estimated liability for

employee benefits ................................. (128.2) 677.8 245.9 (228.8) 80.2

384.7 (2,033.3) (737.7) 686.4 (240.6)

Total Other Comprehensive Income

(Loss) for the Period, Net of Income

Tax ....................................................... 680.4 (2,498.4) (726.6) 697.5 (235.1)

Total Comprehensive Income for the

Period .................................................. 43,848.7 81,911.4 79,284.0 42,779.9 106,281.5

Note

(1) As restated. See “Presentation of Financial Information.”

71

Consolidated Statements of Financial Position

As of December 31, As of June 30,

2013(1) 2014(1) 2015 2016

(US$ thousands) (unaudited)

Assets

Current Assets

Cash and cash equivalents ............................................... 130,743.2 95,286.9 57,626.3 226,282.2

Trade receivables - net .................................................... 58,591.7 60,540.7 70,920.1 66,969.0

Other receivables............................................................. 464.2 177.7 88.7 112.6

Inventories - net .............................................................. 25,165.9 25,528.1 23,769.1 28,772.0

Advances ......................................................................... 10,334.7 11,548.7 2,804.1 1,239.2

Prepaid tax ...................................................................... — — 7,625.8 —

Prepaid expenses ............................................................. 1,105.9 1,553.2 2,339.8 1,901.5

Investments ..................................................................... 13,842.3 1,985.2 — 310.8

Restricted cash in banks .................................................. 25,090.6 16,293.0 151.8 151.7

Claims for tax refund ...................................................... — 9,603.7 — —

Total Current Assets ...................................................... 265,338.5 222,517.1 165,325.7 325,739.0

Non-Current Assets

Electrical equipment not used in operations ..................... 258.9 236.9 436.5 355.5

Advances for purchase of property, plant and equipment

Third Parties ............................................................... 59,384.8 54,966.7 47,113.6 52,173.4

Related Party .............................................................. 2,078.5 6,035.5 9,992.5 10,991.8

Claims for tax refund ...................................................... 9,801.5 — 24,657.0 25,807.5

Loans to employees ......................................................... 64.5 62.8 70.7 116.2

Property, plant and equipment - net ................................. 489,950.2 614,438.9 754,328.7 797,830.7

Net deferred tax assets .................................................... 6,385.5 3,780.8 2,711.8 49,007.1

Other non-current assets .................................................. 231.8 198.1 1,083.0 259.3

Total Non-Current Assets .............................................. 568,155.6 679,719.6 840,393.8 936,541.5

Total Assets .................................................................... 833,494.1 902,236.8 1,005,719.5 1,262,280.5

Liabilities And Equity

Liabilities

Current Liabilities

Trade payables ...............................................................

Third Parties ............................................................... 20,255.2 25,765.7 38,156.1 36,445.7

Related Party .............................................................. 495.5 457.0 11.0 460.7

Other payables ................................................................ 1,418.1 6,734.8 14,575.5 16,864.9

Taxes payable .................................................................. 5,772.3 17,516.5 17,517.9 10,732.6

Accrued expenses ............................................................ 13,871.1 13,878.2 14,463.2 19,008.9

Total Current Liabilities ................................................ 41,812.2 64,352.2 84,723.8 83,512.8

Non-Current Liabilities

Other payable - net of current maturities ......................... — — 2,960.6 2,060.5

Net deferred tax liabilities ............................................... 27,937.9 22,812.8 24,907.2 —

Customers’ deposits ......................................................... 32,923.1 37,103.2 37,931.5 40,503.0

Notes payable .................................................................. 493,036.7 494,196.2 495,442.8 496,100.9

Estimated liability for employee benefits ......................... 14,765.1 20,925.0 22,622.3 23,725.6

Total Non-Current Liabilities ........................................ 568,662.7 575,037.2 583,864.3 562,390.0

Total Liabilities .............................................................. 610,474.9 639,389.4 668,588.1 645,902.8

72

As of December 31, As of June 30,

2013(1) 2014(1) 2015 2016

(US$ thousands) (unaudited)

Equity

Share capital - Rp200 par value per share as of June 30,

2016 and December 31, 2015 and Rp1,000,000 par

value per share as of December 31, 2014 and 2013

Authorized - 57,913,760,000 shares as of June 30, 2016

and December 31, 2015 and 1,068,000 shares as of

December 31, 2014 and 2013

Issued and fully paid - 16,087,156,000 shares as of June

30, 2016, 14,478,440,000 shares as of December 31,

2015 and 1,068,000 shares as of December 31, 2014

and 2013 ..................................................................... 120,949.1 120,949.1 257,885.3 282,002.2

Additional paid-in capital ................................................ — — — 148,848.0

Changes in fair value of available-for-sale investments ... 454.0 (11.1) — 5.5

Retained earnings ............................................................ 101,616.1 141,909.4 79,246.0 185,522.1

Total Equity ................................................................... 223,019.1 262,847.4 337,131.3 616,377.7

Total Liabilities and Equity ........................................... 833,494.1 902,236.8 1,005,719.5 1,262,280.5

Note

(1) As restated. See “Presentation of Financial Information.”

Consolidated Statements of Cash Flows

For the year ended December 31,

For the six-month period

ended June 30,

2013(1) 2014(1) 2015 2015 2016

(US$ thousands) (unaudited)

Net cash provided by operating activities .. 68,520.8 162,430.6 147,033.5 66,934.1 63,864.8

Net cash used in investing activities ......... (167,156.9) (153,751.1) (175,251.2) (97,563.8) (69,650.5)

Net cash provided (used in) by financing

activities ............................................... (55,433.8) (42,083.2) (5,000.0) — 172,964.9

Net increase (decrease) in cash and cash

equivalents ........................................... (154,069.9) (33,403.7) (33,217.7) (30,629.7) 167,179.2

Effect of exchange rate changes on cash

and cash equivalents ............................. (19,588.4) (2,052.6) (4,442.8) (3,976.9) 1,476.7

Cash and cash equivalents at beginning of

period ................................................... 304,401.5 130,743.2 95,286.9 95,286.9 57,626.3

Cash and cash equivalents at end of

period ................................................... 130,743.2 95,286.9 57,626.3 60,680.2 226,282.2

Note

(1) As restated. See “Presentation of Financial Information.”

73

Other Financial Data

As of or for the year ended December 31,

As of or for

the twelve

months ended

June 30,

2013(1) 2014(1) 2015 2016

(US$ thousands) (unaudited)

Total Debt(3) ...................................................................... 493,036.7 494,196.2 495,442.8 496,100.9

Net Debt(4)/EBITDA(2) ....................................................... 2.32 2.09 2.24 1.35

Total Debt(3)/EBITDA(2) ..................................................... 3.16 2.58 2.53 2.48

EBITDA(2)/Finance Cost(2)(5) .............................................. 4.61 6.47 7.87 8.52

Total Debt(3)/Equity(6) ........................................................ 2.21 1.88 1.47 0.80

For the year ended December 31,

For thesix-month

period endedJune 30,

2013(1) 2014(1) 2015 2016

(US$ thousands) (unaudited)EBITDA(7) ......................................................................... 155,927.9 190,718.8 195,447.9 99,811.7

Note

(1) As restated. See “Presentation of Financial Information.”

(2) Figures for the last twelve months (“LTM”) ended June 30, 2016 are based on an LTM EBITDA of US$200 million(US$195 million for the year ended December 31, 2015 and US$95 million and US$100 million for the six-monthperiods ended June 30, 2015 and 2016, respectively), and LTM Finance Cost of US$23 million (US$25 million forthe year ended December 31, 2015 and US$10 million and US$8 million for the six-month periods ended June 30,2015 and 2016, respectively).

(3) Total Debt includes notes payable.

(4) Net Debt is defined as Total Debt less cash and cash equivalents.

(5) Finance Cost includes interest expense and other financing costs.

(6) Equity includes share capital, additional paid-in capital, changes in fair value of available-for-sale investments andretained earnings.

(7) We define EBITDA as profit for the period before corporate income tax expense (benefit), depreciation expense,consolidated interest expense and other non-cash items such as impairment loss on receivables, provision forinventory obsolescence, gain on sale of equipment, loss (gain) on sale of investments and foreign exchange loss forthe periods presented. You should not compare our EBITDA to EBITDA presented by other companies because notall companies use the same definition. The term “Consolidated EBITDA,” as used in the section titled “Descriptionof the Notes” summarizing certain provisions of the Indenture, is calculated differently from EBITDA and is not ameasurement of financial performance or liquidity under Indonesian GAAP or U.S. GAAP. The following tablereconciles our profit for each of the periods presented below to our EBITDA.

For the year ended December 31,For the six-month period

ended June 30,

2013(1) 2014(1) 2015 2015 2016

(US$ thousands) (unaudited)Profit for the period ........................ 43,168.3 84,409.8 80,010.6 42,082.4 106,516.6Adjustments:

Corporate income tax expense(benefit)(2) .............................. 19,423.2 27,759.1 28,243.3 11,913.0 (45,962.4)

Depreciation expense(3) ............... 42,400.9 41,422.1 41,194.7 20,595.9 19,875.5Consolidated interest expense(4) .. 36,446.8 36,266.9 36,677.7 18,237.9 18,529.2Other non-cash items:

Impairment loss onreceivables ......................... 866.6 472.8 1,045.4 890.7 141.0

Provision for inventoryobsolescence....................... 312.6 89.4 137.1 191.8 183.4

Gain on sale of equipment(5)... (58.4) (90.7) (160.1) (91.4) (2.3)Loss (gain) on sale of

investments(6) ..................... 256.0 (399.5) 20.4 4.8 —Foreign exchange loss(7) ......... 13,112.0 788.9 8,278.9 1,621.4 530.6

EBITDA ......................................... 155,927.9 190,718.8 195,447.9 95,446.3 99,811.7

EBITDA margin(8) ......................... 31.1% 35.0% 35.7% 35.3% 36.3%

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Notes

(1) As restated. See “Presentation of Financial Information.”

(2) Corporate income tax expense (benefit) is calculated by adding or deducting the income tax pertaining tonon-recurring items (loss on sale of investments and gain on sale of equipment).

(3) Depreciation of property, plant and equipment. Land rights are not depreciated under the prevailing IndonesianFAS.

(4) Consolidated interest expense consists of finance costs plus borrowing costs capitalized to property, plant andequipment.

(5) Gain on sale of equipment is calculated by excluding the income tax pertaining to gain on sale of equipment.

(6) Loss on sale of investments is calculated by excluding the income tax pertaining to loss on sale ofinvestments.

(7) Foreign exchange loss consists of unrealized foreign exchange loss during the period.

(8) EBITDA margin is calculated as EBITDA divided by Total Net Sales.

You should not consider our definition of EBITDA in isolation or construe such measure as

an alternative to net income or profitability or as an indicator of operating performance or any

other standard measure under Indonesian FAS or U.S. GAAP.

Selected Operating Data

The following table sets forth our selected operating data for the years indicated.

For the year ended December 31,

For the six-month period

ended June 30,

2013 2014 2015 2015 2016

Net Generation (GWh) .............................. 4,546.3 4,828.0 4,772.2 2,411.5 2,427.6

Net Plant Heat Rate (Btu/kWh-HHV) ........ 8,255 8,198 8,274 8,154 8,230

Net Capacity Factor (%) ........................... 82.3 87.4 86.4 88.0 88.1

Availability (%) ........................................ 95.4 96.1 93.8 99.2 98.2

Network Distribution Loss (%) ................. 0.57 0.58 0.62 0.60 0.58

SAIDI(1) (hours/customer/year) ................. 0.11 0.20 0.11 0.08 1.41(3)

SAIFI(2) (times/customer/year) .................. 0.16 0.25 0.18 0.11 0.91(3)

Notes

(1) “SAIDI” or the System Average Interruption Duration Index is calculated as the sum of all customer interruption

durations, divided by the total number of customers served.

(2) “SAIFI,” or the System Average Interruption Frequency Index, is calculated as the total of all customer

interruptions, divided by the total number of customers served.

(3) The SAIDI and SAIFI for the six months ended June 30, 2016 took into consideration two events that occurred

during the second quarter of 2016. First, we experienced a failure of a current transformer in the 150kV switchyard,

which resulted in the loss of power supply to several customers. The failed unit as well as similar units from the

same manufacturer were removed from service and replaced with those of another manufacturer. Second, an insulator

to a 150kV disconnect switch broke during a routine maintenance, resulting in loss of power supply. In the course of

replacing the damaged part, a grounding cable broke loose, creating a short circuit and tripping several feeders. The

fault was cleared quickly and power supply was restored. All power supplies were normalized on completion of the

replacement work.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION ANDRESULTS OF OPERATIONS

The following management’s discussion and analysis of financial condition and results ofoperations should be read in conjunction with the selected financial and other data, the auditedand unaudited consolidated financial statements and related notes to the consolidated financialstatements, and other financial information, contained in this offering memorandum. Theseconsolidated financial statements have been prepared in accordance with Indonesian FAS, whichdiffer in certain material respects from U.S. GAAP. See “Summary of Significant DifferencesBetween Indonesian FAS and U.S. GAAP.”

Our consolidated financial statements, which are prepared in accordance with Indonesian FASand presented in U.S. Dollars, are not intended to present our consolidated financial position,financial performance, or cash flows in accordance with accounting principles generally acceptedin countries and jurisdictions other than those in Indonesia. Indonesian FAS differ in significantrespects from U.S. GAAP. In making an investment decision, you should rely upon your ownexamination of us, the terms of the Offering and the financial information contained in thisoffering memorandum. You should consult your own professional advisors for an understanding ofthe differences between Indonesian FAS and U.S. GAAP, and how such differences could affectthe financial information contained in this offering memorandum. See “Summary of SignificantDifferences between Indonesian FAS and U.S. GAAP” included elsewhere in this offeringmemorandum for a description of summary of significant differences between Indonesian FAS andU.S. GAAP.

The management’s discussion and analysis of our financial condition and results of operationpresented and discussed below has been derived from our audited consolidated financial statementsas of December 31, 2013, 2014 and 2015 and for the years then ended, included elsewhere in thisoffering memorandum, and our unaudited consolidated financial statements as of June 30, 2016and for the six-month periods ended June 30, 2016 and 2015, included elsewhere in this offeringmemorandum.

Our audited consolidated financial statements as of December 31, 2013, 2014 and 2015 andfor the years then ended, prepared in accordance with Indonesian FAS, and presented in U.S.Dollars, have been audited by PSS, independent auditors, in accordance with Standards onAuditing established by the IICPA, as stated in their audit report appearing elsewhere in thisoffering memorandum. Our unaudited interim consolidated financial statements as of June 30,2016 and for the six-month periods ended June 30, 2016 and 2015, have been reviewed by PSS,independent auditors, in accordance with SRE 2410, established by the IICPA, as stated in theirreview report appearing elsewhere in this offering memorandum. A review is substantially less inscope than an audit conducted in accordance with Standards on Auditing established by IICPA andtherefore PSS do not express an audit opinion on such financial information.

Overview

We are engaged in electricity generation and distribution in Indonesia. As the holder of anintegrated IUKU License, we are the sole private supplier of electricity to 2,223 customers locatedin five neighboring industrial estates in the Cikarang area as of June 30, 2016. We also supplyelectricity to PLN, a state-owned electric utility company, under the EPSPA pursuant to whichPLN has committed to purchase a fixed volume of electricity from us each month on a“take-or-pay” basis. Our industrial estates business has in recent years offered consistent revenuegrowth and strong cash flow, while our PLN business provides reliable demand. CikarangListrindo’s shares were listed for trading on the Indonesia Stock Exchange on June 14, 2016 andhad a market capitalization of US$1.9 billion as of August 18, 2016 based on a price of Rp1,575per share.

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We own and operate two natural gas-fired combined-cycle power plants with a combinedinstalled generation capacity of 864 MW. Our power plants are located on two sites in theCikarang area of the Bekasi Regency of approximately 16 hectares and 12 hectares, respectively,approximately 45 kilometers east of Jakarta.

Our first gas-fired power plant commenced operations in November 1993 with two GE Frame6B gas turbines providing an installed generation capacity of 60 MW. By the end of 1998, we hadincreased our installed generation capacity to 300 MW through the installation of four additionalGE Frame 6B gas turbines and other ancillary equipment. In 2005, we launched a capacityexpansion plan, which increased installed generation capacity to 646 MW by 2011 through theinstallation of two GE Frame 9E gas turbines and other ancillary equipment. In June 2012, weinstalled a third GE Frame 9E gas turbine with other ancillary equipment, increasing the plant’sinstalled generation capacity to its current level of 755 MW. We are using the third GE Frame 9Egas turbine as a backup unit to be operated as required when any existing gas turbine unitundergoes maintenance or experiences a shutdown. Further, in December 2012, we added three150kV switchyard bays, a 60/80 MV distribution transformer and a switchgear building.

Our second gas-fired power plant was completed in the fourth quarter of 2014 andcommenced operations in July 2015. It utilizes a GE Frame 9E gas turbine and has an installedgeneration capacity of 109 MW. It is located in the MM-2100 industrial estate close to our firstgas-fired power plant, and is intended as a backup plant to be operated as required. It consists ofa GE Frame 9E gas turbine, a 15-bay 150kV switchyard with 12 bays fully equipped, four 60/80MVA distribution transformers and a switchgear building. A double circuit 150kV overheadtransmission line connects our second gas-fired power plant with our first gas-fired power plant inCikarang. The plant has a generator voltage of 15kV and a main transmission voltage of 150kV.The 150kV supply is connected to the 150kV system of our first gas-fired power plant, and theelectricity it generates is synchronized with the operation of our first gas-fired power plant at the150kV level. The 150kV supply also feeds into four distribution transformers, where it is steppeddown to 20kV and is distributed into our pre-existing distribution system to supply to ourcustomers.

To complement our existing gas-fired power plants and in anticipation of continued growth indemand from existing industrial estate customers and the addition of new industrial estatecustomers, we are currently constructing a coal-fired power plant on an approximately 72 hectaresite in Babelan, Bekasi, which is approximately 20 kilometers east of Jakarta. The construction ofthe coal-fired power plant commenced in December 2012, and it is expected to be fullycommissioned in the fourth quarter of 2016. The coal-fired power plant will consist of twoturbines, each with an installed generation capacity of approximately 140 MW, representing a totalinstalled generation capacity of approximately 280 MW. The coal-fired power plant will also havea generator voltage of 15kV and a main transmission voltage of 150kV, which will beinterconnected and also connected to the 150kV system of our existing power plants, and back-upsupply will also be taken for the start-up of the coal-fired plant. The electricity supply generatedfrom the coal-fired power plant will be synchronized with the operation of the existing powerplants at the 150kV level and its supply will be distributed into our existing distribution system tosupply to our customers.

On October 26, 2015, we and GE Capital entered into a Memorandum of Understanding (the“MoU”) related to an equity investment in a joint venture to develop a planned 1,100 to 1,400MW gas-fired combine cycle electricity generation facility in Indonesia utilizing General Electric’s(“GE”) Frame 9HA gas turbine model. The facility is intended to be built on land currently ownedby us and located in the MM-2100 industrial estate. The MoU sets forth the intended frameworkfor the development of the new gas-fired electricity generation facility to the mutual benefit ofboth parties. This transaction is subject to us and GE Capital reaching definitive agreementssetting forth the details of terms and conditions of the cooperation, including our securing a powerpurchase agreement with PLN for at least an additional 1,100 MW of supply.

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We supply power to our industrial estate customers through our 20kV and 380V distributionsystem and to PLN through our 150kV transmission system. In total, we own over 1,329 km of20kV distribution lines and over 3 km of 150kV transmission lines, and we currently haveapproximately 30 km of transmission lines under construction in connection with our newcoal-fired power plant, several sections of which are already complete with the full length of theline scheduled to be completed and energized by September 2016. The power plants and theelectricity transmission and distribution systems are owned by us, and are operated and maintainedby our own trained staff and, as necessary, by third-party service providers. Our third partyservice providers include, among others, General Electric, which provides technical advisory andrepair services for our GE gas turbines, Mitsubishi Electric Corporation, which provides technicaladvisory services for our Mitsubishi steam turbines, and Siemens, which provides technicaladvisory services for our Siemens steam turbines.

We had net sales of US$544.7 million for the year ended December 31, 2014, US$547.9million for the year ended December 31, 2015 and US$274.7 million for the six-month periodended June 30, 2016. Net sales to industrial estate customers accounted for 70.4%, 69.7% and72.9% of our total net sales for the years ended December 31, 2014 and 2015 and the six-monthperiod ended June 30, 2016, respectively. We had EBITDA of US$190.7 million and US$195.4million for the years ended December 31, 2014 and 2015, respectively, and US$99.8 million forthe six-month period ended June 30, 2016. In addition, our total comprehensive income wasUS$81.9 million for the year ended December 31, 2014, US$79.3 million for the year endedDecember 31, 2015 and US$106.3 million for the six-month period ended June 30, 2016.

Factors Affecting Our Results of Operations

Our business and results of operations have been affected by a number of important factorsthat we believe will continue to affect our business and results of operations. Among these factorsare the following:

Electricity Tariffs

Our revenues are significantly impacted by the electricity tariff rates that we are allowed tocharge. Currently, the tariffs that we charge are based on the tariff ceiling rates set by theMinistry for Energy and Mineral Resources. However, under New Electricity Law No. 30 andRegulation 14/2012, the central Government no longer has the exclusive authority to set electricitytariffs. Rather, the central Government, with the approval of the House of Representatives, will settariffs for consumers who purchase from holders of electricity licenses issued by the centralGovernment, and regional governments, with the approval of the regional House ofRepresentatives, will be allowed to set different tariffs for consumers who purchase from holdersof electricity licenses issued regionally, provided that such regional tariffs are set in accordancewith national guidelines to be issued by the central Government. Under Regulation 14/2012, theelectricity license holder shall submit a request to the Minister of Energy and Mineral Resources,the governor or the regent/mayor, as applicable, to approve its electricity tariffs. Furtherguidelines for obtaining approval for tariffs for electricity sales to public consumers will be setout in ministerial regulations, governor regulations or regent/mayor decree. Until such furtherregulations or decree are issued, it is not yet clear how the new tariff policy under NewElectricity Law No. 30 and Regulation 14/2012 will be implemented or how such implementationwill affect our business, financial condition, results of operations or prospects. See “Regulation ofthe Indonesian Power Generation Industry—New Electricity Law No. 30” and “Risk Factors—Risks Relating to Government Regulation—We operate under a Government-regulated tariff regimeand are therefore unable to unilaterally adjust the pricing of electricity that we sell, and aresubject to uncertainty resulting from the change in tariff policy under New Electricity Law No. 30and Regulation 14/2012.” Any adverse change in the Government’s tariff policy may have asignificant impact on our results of operations by limiting the revenues which we may derive fromthe generation, transmission and distribution of electricity, our sole business activity.

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Demand for Electricity by Industrial Estates

For the years ended December 31, 2013, 2014, 2015 and the six-month period ended June 30,2016, our industrial estate sales represented 71.3%, 70.4%, 69.7% and 72.9%, respectively, of ourtotal net sales. Accordingly, our results of operations depend primarily on the continued existence,success and growth of the businesses in the industrial estates that we serve. As these businesses inthe industrial estates are primarily export-oriented companies engaged in light or heavymanufacturing, their success and growth depends in large part on the strength and growth of theglobal economy and are also subject to any contraction or adverse impacts to the global economy.For example, during the recent global economic slowdown resulting from extraordinary volatilityin international capital and credit markets and related disruptions in the financial sector, weexperienced a decrease in electricity demand by industrial estate customers for the fourth quarterof 2008 and the first quarter of 2009. Although electricity demand from industrial estate customerssince 2010 has increased beyond the levels seen before the fourth quarter of 2008, ongoingvolatility in global financial markets, together with concerns about the possibility of anotherglobal recession, could adversely affect our business and financial condition. For example, whiledemand from our industrial estate customers increased for the years ended December 31, 2013 and2014, demand from industrial estate customers decreased slightly for the year ended December 31,2015 and demand from industrial estate customers increased for the six-month period ended June30, 2016.

We believe that connections with new customers, as well as increasing demand from ourexisting customers, will remain the key demand drivers for our industrial estate sales, which inturn depend on increased power consumption from developed industrial land and the developmentof available-for-sale industrial land. The industrial estates that we serve may not continue toexpand or new land may not be developed and made available for future sale in a timely manneror at all. Any global economic downturn or other factors causing any of the existing businesses inthese industrial estates to scale back or cease their operations or move to a different industrialestate not served by us or any lack of available-for-sale industrial land for future developmentcould have a material adverse effect on our business, financial condition, results of operations andprospects. See “Risk Factors—Risks Relating to Our Business—Our financial performance ishighly dependent on the continued existence, success and growth of the businesses in theindustrial estates we serve and continued expansion of the existing industrial estates anddevelopment of new available-for-sale industrial land in the industrial estates we serve, all ofwhich in part depend on the growth of the general global economy.”

Demand for Electricity by PLN and relationship with PLN

In 1996, we entered into the EPSPA with PLN, pursuant to which PLN committed topurchase a fixed volume of electricity from us each month on a “take-or-pay” basis for a term of20 years. Under the EPSPA and prior to March 2011, we provided to PLN a monthly volume ofelectricity based on an annual capacity commitment of 150 MW. In March 2011, the EPSPA wasamended to increase the annual capacity commitment to 300 MW until January 26, 2016. InJanuary 2016, the increased capacity commitment term was further extended to January 2019. Forthe years ended December 31, 2013, 2014, 2015 and the six-month period ended June 30, 2016,our sales to PLN represented 28.7%, 29.6%, 30.3% and 27.1% respectively, of our total net sales.In the past, there have been instances where we have delivered only a portion of PLN’s off-takerequirement due to capacity constraints and temporary difficulties in obtaining adequate suppliesof natural gas. By completing the first stage of our capacity expansion plan and installing the firstGE Frame 9E gas turbine in July 2006, and entering into the amended PGN Natural GasAgreement whereby PGN will supply gas until March 31, 2020, we alleviated such capacityconstraints. Furthermore, we believe that the second GE Frame 9E gas turbine, which becameoperational in the fourth quarter of 2009, the installation of the two Alstom Heat Recovery SteamGenerators (“HRSGs”) and the Siemens steam turbine, which became operational in March 2011 aswell as the installation of third GE Frame 9E gas turbine, which became operational in June 2012,should provide enough additional capacity to satisfy PLN demand at 300 MW.

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Between June 1998 and March 2003, PLN suspended its purchase of power from us under theEPSPA due to adverse economic conditions, which reduced PLN’s power distribution andadversely affected PLN’s financial condition. At the same time, PLN’s financial difficulties alsoadversely affected our ability to collect our accounts receivable from PLN, which resulted in arestructuring of receivables due from PLN. As of May 2007, these delayed payments had all beenreceived, and since then we have not experienced any difficulties receiving payments from PLN.Despite the existence of binding agreements, there can be no assurance that we will not experiencedifficulties in collecting payments from PLN in the future, and such difficulties may adverselyaffect our business, results of operation and prospects. See “Risk Factors—Risks Relating to OurBusiness—We are subject to risks associated with reliance on PLN as a significant customer.”

Natural Gas Expenses

Natural gas depreciation, spare parts, equipment rental costs, maintenance and repairs andemployee salaries and benefits together account for nearly all of our costs of sales, with naturalgas alone representing 83.9%, 84.6%, 84.4% and 84.3% of our costs of sales for the years endedDecember 31, 2013, 2014 and 2015 and the six-month period ended June 30, 2016, respectively.Our natural gas costs increased 2.3% from US$296.9 million for the year ended December 31,2013 to US$303.8 million for the year ended December 31, 2014 and further increased by 0.7% toUS$305.9 million for the year ended December 31, 2015, primarily due to increases in the unitcost of gas purchased from Pertamina. Our natural gas costs were US$153.2 million for thesix-month period ended June 30, 2016.

In addition, our costs will continue to depend in significant part on the blended average heatrate, which, in addition to being dependent on the type of fuel used to operate the power plant, isalso affected by our power plants’ capacity factor and its mode of operation. See “RiskFactors—Risks Relating to Our Business—If the cost of natural gas increases, our results ofoperations may be adversely affected.”

General Domestic and Global Economic Conditions

Our results of operations depend primarily on the continued existence, success and growth ofthe businesses in the industrial estates that we serve. See “—Demand for Electricity by IndustrialEstates.” As these businesses in the industrial estates are primarily export-oriented companiesengaged in light or heavy manufacturing, they are exposed to adverse conditions in the globaleconomy as well as the industries and geographical markets in which they operate. As a result, ourfinancial condition and results of operations may be influenced by the general state of the globaleconomy. Any significant decrease in the level of economic activity or economic growth in theglobal economy may adversely affect our financial condition or results of operations.

The current global recovery is proceeding at varying speeds across regions and is still subjectto downside risks stemming from factors like fiscal fragility in advanced economies, slowinggrowth in the developing world, high sovereign debt levels, highly accommodative macroeconomicpolicies and persistent difficulties in access to credit. Concerns such as weaker globalcommodities markets, the continuing global economic uncertainties and slowing growth in thePeople’s Republic of China have disrupted financial markets and weakened consumer demand andthe economic outlook in the European Union, the Asia-Pacific Region, the United States and otherparts of the world. If unfavorable global economic conditions continue or worsen, this may have amaterial adverse effect on the continued existence, success and growth of our industrial estatecustomers.

In addition, our financial performance is, in part, dependent on general conditions in theeconomy of Indonesia, as all of our electricity generation and distribution assets and customers arelocated in Indonesia and all of our operating revenue is generated from our business activities inIndonesia. The rate of increase in electricity consumption in Indonesia has broadly reflected theincrease in Indonesia’s GDP growth rate. Indonesia experienced a recessionary phase withrelatively low levels of growth in 1999 through 2002. Indonesia’s GDP growth rate has since

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stabilized at higher levels in recent years, and was 6.2% in 2011, 6.0% in 2012, 5.6% in 2013,5.0% in 2014 and 4.7% in 2015. However, there is no assurance that such GDP growth rate willnot return to recessionary levels. The Government continues to suffer from a large fiscal deficitand a high level of debt. Its foreign currency reserves are modest and the Indonesian bankingsector suffers from relatively high levels of non-performing loans. As we operate only inIndonesia, any change in general economic conditions in Indonesia could impact our capacityutilization, which could affect our business, financial condition, results of operations andprospects.

Effects of Fluctuations in Foreign Currency Exchange Rates

As of January 1, 2012, we adopted the U.S. Dollar as our functional currency. While this hasreduced the effect of exchange rates on our results of operations because a substantial portion ofour costs and expenses are denominated in U.S. Dollars, we are still exposed to exchange raterisks from transactions that are denominated in Rupiah and other currencies that are not ourfunctional currency. For instance, some of our costs are denominated in Rupiah and, therefore, anappreciation in the value of the Rupiah tends to have an adverse effect on such costs. On the otherhand, a depreciation in the value of the Rupiah tends to have an adverse effect when we convertour outstanding Rupiah cash balances and payments received from our customers into U.S.Dollars. In addition, adverse economic conditions in Indonesia incidental to the depreciation of thevalue of Rupiah may lead to a decrease in electricity demand, which may partially offset thebenefits of depreciation. Significant fluctuations in Rupiah against the U.S. Dollar could thereforehave an adverse effect on our results of operations.

Fluctuations in foreign currency exchange rates have resulted in us recording a net foreignexchange loss of US$24.3 million, US$6.9 million, US$10.6 million, reflecting a depreciation ofRupiah of 26.1%, 2.1% and 10.9% for the years ended December 31, 2013, 2014 and 2015,respectively, and net foreign exchange loss of US$1.0 million, reflecting an appreciation of Rupiahof 4.5% for the six-month period ended June 30, 2016. Our cost of sales, other than natural gas,spare parts, repairs and maintenance and certain other expenses, are denominated in Rupiah andother currencies that are not our functional currency.

Most of our revenues are denominated in Rupiah. However, tariffs for both industrial estatecustomers and PLN include automatic adjustments for currency fluctuations and are billed tocustomers in Rupiah at the prevailing exchange rate at the time of billing. While ourRupiah-denominated revenues are subject to exchange rate fluctuations, in U.S. Dollar terms, ourtariffs remain constant regardless of the Rupiah-U.S. Dollar exchange rate. However, depreciationof Rupiah against the U.S. Dollar may negatively impact the ability of our customers to payelectricity bills or comply with their obligations under their agreements with us.

We currently do not hedge foreign exchange exposures in our business or financingoperations. However, to manage our foreign exchange risks and stabilize cash flows, we areallowed to make foreign exchange rate adjustments in billings to our customers that minimize ourexposure to foreign exchange losses.

Modification of the current floating exchange rate policy of Indonesia could also result insignificantly higher domestic interest rates, liquidity shortages, capital or exchange controls or thewithholding of additional financial assistance by multinational lenders. This could result in areduction of economic activity, an economic recession, loan defaults and increases in the price ofimports, all of which could materially adversely impact our results of operations. See “RiskFactors—Risks Relating to Our Business—Exchange rate fluctuations may materially andadversely affect our business, financial condition or results of operations.”

Critical Accounting Policies

Our consolidated financial statements have been prepared in accordance with IndonesianFAS. Preparation of our consolidated financial statements requires our management to makeestimates and judgments under the critical accounting policies described below.

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The following critical accounting policies were applied consistently in the preparation of theconsolidated financial statements:

Basis of Preparation of Consolidated Financial Statements

Our consolidated financial statements have been prepared in accordance with Statement ofFinancial Accounting Standards (“SFAS”) No. 1 (Revised 2013), “Presentation of FinancialStatements.” SFAS No. 1 (Revised 2013) prescribes the basis for presentation of general purposefinancial statements to ensure comparability both with the entity’s financial statements of previousyears and with the financial statements of other entities.

Our consolidated financial statements, presented in U.S. Dollars (reporting and functionalcurrency), have been prepared on an accrual basis and using the historical cost basis except asotherwise disclosed therein.

Our consolidated statements of cash flows present receipts and disbursements of cash andcash equivalents classified into operating, investing and financing activities. The cash flows fromoperating activities are presented using the direct method.

Principles of Consolidation

Our consolidated financial statements adopted SFAS No. 4 (2015 Amendments), “SeparateFinancial Statements”, on Equity Method in Separate Financial Statements, effective January 1,2016. The amendments, among others, allow entities to use the equity method to account forinvestments in subsidiaries, joint ventures and associates in their separate financial statements.

The adoption of SFAS No. 4 (2015 Amendments) has no significant impact on theconsolidated financial statements.

The consolidated financial statements include the accounts of the Parent Guarantor and itsdirect and indirect wholly-owned subsidiaries, Listrindo Capital B.V. and Signal Capital B.V. Allsignificant intercompany accounts and transactions have been eliminated.

A subsidiary is fully consolidated from the date of acquisition, being the date on which weobtained control, and continues to be consolidated until the date such control ceases. Control ispresumed to exist if we own, directly or indirectly through subsidiaries, more than half of thevoting power of an entity.

All material intercompany accounts and transactions, including unrealized gains or losses, ifany, are eliminated to reflect the consolidated financial position and the financial performance ofthe Parent Guarantor and its subsidiaries as one business entity.

Transactions with Related Parties

We have transactions with related parties as defined under SFAS No. 7 (Revised 2010),“Related Party Disclosures.”

The transactions are made based on terms agreed by the parties. Such terms may not be thesame as those of the transactions between unrelated parties.

Revenue and Expense Recognition

Revenue from sales is recognized upon delivery of electricity. Revenue from connectioncharges is recognized at the time the related services are rendered to customers. Expenses arerecognized when incurred (accrual basis).

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Cash and Cash Equivalents

Cash and cash equivalents consist of cash on hand and in banks, and short-term time depositswith original maturities of three months or less and which are not pledged as collateral for loansor not restricted as to use.

Financial Instruments

(i) Financial Assets

Our financial assets include cash and cash equivalents, restricted cash in banks, trade andother receivables, loans to employees, and security deposits, which are classified as loans andreceivables, and quoted investments, which are classified as available-for-sale financial assets.Financial assets are initially recognized at fair value.

Loans and Receivables

Loans and receivables are non-derivative financial assets with fixed or determinablepayments that are not quoted in an active market. After initial measurement, such financial assetsare subsequently measured at amortized cost using the effective interest method, less impairment,if any. The losses arising from impairment are recognized in the consolidated statements of profitor loss and other comprehensive income.

Available-for-sale (AFS) Financial Assets

AFS financial assets are non-derivative financial assets that are designated asavailable-for-sale or those that are not classified as financial assets at fair value through profit orloss, loans and receivables or held-to-maturity investments. After initial measurement, AFSfinancial assets are measured at fair value with unrealized gains or losses recognized in the equityin the consolidated statements of financial position until the investment is derecognized. At thattime, the cumulative gain or loss previously recognized in the equity shall be reclassified to profitor loss as a reclassification adjustment.

Impairment of Financial Assets

We assess at each reporting date whether there is any objective evidence that a financialasset or a group of financial assets is impaired. A financial asset or a group of financial assets isdeemed to be impaired if, and only if, there is objective evidence of impairment as a result of oneor more events that has occurred after the initial recognition of the asset (an incurred “lossevent”) and that loss event has an impact on the estimated future cash flows of the financial assetor the group of financial assets that can be reliably estimated.

Trade receivables are carried at original invoice amount net of allowance for impairmentloss, if any. An estimate of allowance for impairment loss is made when there is objectiveevidence (such as probability of insolvency or significant financial difficulties of the debtor) thatwe will not be able to collect the receivables under the original terms of the invoice and isestablished through provisions charged to income. The outstanding balance of trade receivables isderecognized and written off against the allowance for impairment loss when assessed to beuncollectible.

We first assess whether objective evidence of impairment exists individually for financialassets that are individually significant, or collectively for financial assets that are not individuallysignificant. If we determine that no objective evidence of impairment exists for an individuallyassessed financial asset, whether significant or not, we include the asset in a group of financialassets with similar credit risk characteristics and collectively assess them for impairment. Assetsthat are individually assessed for impairment and for which an impairment loss is, or continues tobe, recognized are not included in a collective assessment of impairment.

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If there is objective evidence that an impairment loss has been incurred, the amount of theloss is measured as the difference between the asset’s carrying amount and the present value ofestimated future cash flows (excluding future expected credit losses that have not yet beenincurred). The present value of the estimated future cash flows is discounted at the financialasset’s original effective interest rate. Assets that are individually assessed for impairment and forwhich an impairment loss is, or continues to be, recognized are not included in a collectiveassessment of impairment.

(ii) Financial Liabilities

Our financial liabilities include trade and other payables, accrued expenses, notes payable,and customers’ deposits, which are classified as loans and borrowings, and are initially recognizedat fair value, inclusive of directly attributable transaction costs.

Loans and Borrowings

After initial recognition, loans and borrowings are subsequently measured at amortized costusing the effective interest method. Gains and losses are recognized in the consolidated statementsof profit or loss and other comprehensive income when the liabilities are derecognized as well asthrough the effective interest method amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisitionand fees or costs that are an integral part of the effective interest rate. The effective interestamortization is included in finance costs in the consolidated statements of profit or loss and othercomprehensive income.

(iii) Derecognition of Financial Assets and Liabilities

Financial assets

A financial asset is derecognized when (i) the rights to receive cash flows from the assetexpired, or (ii) we have transferred our rights to receive cash flows from the asset or haveassumed an obligation to pay the received cash flows in full without material delay to a thirdparty under a “pass-through” arrangement, or (iii) we have transferred substantially all the risksand rewards of the asset, or have neither transferred nor retained substantially all the risks andrewards of the asset but have transferred control of the asset.

Financial liabilities

A financial liability is derecognized when the obligation under the liability is discharged orcancelled or expires. When an existing liability is replaced by another from the same lender onsubstantially different terms, or the terms of an existing liability are substantially modified, suchan exchange or modification is treated as a derecognition of the original liability and therecognition of a new liability, and the difference in the respective carrying amounts is recognizedin the consolidated statements of comprehensive income.

Offsetting of Financial Instruments

Financial assets and financial liabilities are offset and the net amount reported in theconsolidated statements of financial position if, and only if, there is a currently enforceable legalright to offset the recognized amounts and there is an intention to settle on a net basis, or torealize the assets and settle the liabilities simultaneously.

Inventories

Inventories are stated at the lower of cost or net realizable value. Cost is determined by theweighted-average method.

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Property, Plant and Equipment

Our consolidated financial statements adopted SFAS No. 16 (2015 Amendments), “Property,Plant and Equipment”, on the Clarification of the Accepted Method for Depreciation, effectiveJanuary 1, 2016. The amendments clarify the principles in SFAS No. 16 that revenue reflects apattern of economic benefits that are generated from operating a business (of which the asset ispart) rather than the economic benefits that are consumed through use of the asset. As a result, arevenue-based method cannot be used to depreciate the property, plant and equipment.

The adoption of SFAS No. 16 (2015 Amendments) has no significant impact on theconsolidated financial statements.

Property, plant and equipment, except landrights which are stated at cost and not depreciated,are stated at cost less accumulated depreciation. Depreciation is computed using the straight-linemethod based on the estimated useful lives of the assets as follows:

Years

Buildings and infrastructure .......................................................................................................................... 10 — 15

Machinery and equipment ............................................................................................................................. 20

Furniture, fixtures and office equipment ...................................................................................................... 4 — 5

Transportation equipment .............................................................................................................................. 4 — 5

Machinery and equipment under installation/construction and land rights under developmentare stated at cost. The accumulated cost will be reclassified to the appropriate property, plant andequipment accounts when the assets are substantially complete and are ready for their intendeduse.

Cost includes the cost of replacing part of the property, plant and equipment when that costis incurred, if the recognition criteria are met. Likewise, when a major inspection is performed, itscost is recognized in the carrying amount of the property, plant and equipment as a replacement ifthe recognition criteria are satisfied. All other repairs and maintenance costs are recognized in theconsolidated statements of profit or loss and other comprehensive income as incurred.

When assets are retired because no future economic benefits are expected to arise from theircontinued use, or when assets are disposed of, their costs and the related accumulated depreciationare derecognized from the accounts. Any gain or loss arising from derecognition of an asset(calculated as the difference between the net disposal proceeds and the carrying amount of theasset) is reflected in the consolidated statements of profit or loss and other comprehensive incomein the period the asset is derecognized.

The assets’ residual values, useful lives and method of depreciation are reviewed andadjusted prospectively, if appropriate, at each financial year end.

Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of an assetthat necessarily takes a substantial period of time to get ready for its intended use or sale arecapitalized as part of the cost of the asset. All other borrowing costs are expensed in the periodduring which they are incurred.

Impairment of Property, Plant and Equipment

We assess at each reporting date whether there is an indication that an asset may beimpaired. If such indication exists, we estimate the asset’s recoverable amount. Where the carryingamount of an asset exceeds its recoverable amount, the asset is considered impaired and is writtendown to its recoverable amount.

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An assessment is made at each annual reporting period as to whether there is any indicationthat previously recognized impairment losses may no longer exist or may have decreased. Apreviously recognized impairment is reversed only if there has been a change in the assumptionsused to determine the asset’s recoverable amount since the last impairment loss is recognized.Where an impairment loss is subsequently reversed, the carrying amount of the asset is increasedto its recoverable amount. That increased amount cannot exceed the carrying amount that wouldhave been determined, net of depreciation, had no impairment loss been recognized for the assetin prior years. Such reversal is recognized the consolidated statements of profit or loss and othercomprehensive income.

Income Tax

We provide for current income tax on the basis of our income for financial reportingpurposes, adjusted for certain income and expense items which are not assessable or deductible fortax purposes.

We apply the liability method to determine our deferred income tax expense or benefit.Under the liability method, deferred tax assets and liabilities are recognized for temporarydifferences between the financial and the tax bases of assets and liabilities at each reporting date.This method also requires the recognition of future tax benefits on unused tax losses to the extentthat realization of such benefits is probable. Deferred tax assets and liabilities are measured at thetax rates that are expected to apply to the period when the asset is realized or the liability issettled based on the tax rates (and tax laws) that have been enacted or substantively enacted at theconsolidated statement of financial position date.

The carrying amount of deferred income tax assets is reviewed at each statement of financialposition date and reduced to the extent that it is no longer probable that sufficient taxable profitwill be available to allow all or part of the deferred income tax asset to be utilized. Unrecognizeddeferred income tax assets are reassessed at each consolidated statement of financial position dateand are recognized to the extent that it has become probable that future taxable profit will allowthe deferred tax asset to be recovered. Amendments to tax obligations are recorded when anassessment is received and we have incurred an obligation on the assessment or, if appealedagainst by us, when the result of the appeal is determined.

Income tax relating to items recognized directly in equity is recognized in the consolidatedstatement of comprehensive income.

Leases

The determination of whether an arrangement is or contains a lease is based on the substanceof the arrangement at inception date and whether the fulfillment of the arrangement is dependenton the use of a specific asset and the arrangement conveys a right to use the asset. Leases thattransfer substantially to the lessee all the risks and rewards incidental to ownership of the leaseditem are classified as finance leases. Moreover, leases which do not transfer substantially all therisks and rewards incidental to ownership of the leased item are classified as operating leases.

As lessee

Under a finance lease, we recognize assets and liabilities in our consolidated statement offinancial position at amounts equal to the fair value of the leased property or, if lower, the presentvalue of the minimum lease payments, each determined at the inception of the lease. Minimumlease payments are apportioned between the finance charge and the reduction of the outstandingliability. The finance charge is allocated to each period during the lease term so as to produce aconstant periodic rate of interest on the remaining balance of the liability.

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Contingent rents shall be charged as expenses in the periods in which they are incurred.Finance charges are reflected in profit and loss. Capitalized leased assets (presented under theaccount “Property, Plant and Equipment”) are depreciated over the shorter of the estimated usefullife of the assets and the lease term, if there is no reasonable certainty that we will obtainownership by the end of the lease term.

Under an operating lease, we will recognize lease payments as an expense on a straight-linebasis over the lease term.

As lessor

Under an operating lease, we present assets subject to operating leases in our consolidatedstatement of financial position according to the nature of the asset. Initial direct costs incurred innegotiating an operating lease are added to the carrying amount of the leased asset and recognizedover the lease term on the same basis as rental income. Contingent rents, if any, are recognized asrevenue in the periods in which they are earned. Lease income from operating leases is recognizedas income on the straight-line method over the lease term.

Under a finance lease, we recognize an asset in the form of finance lease receivable in ourconsolidated statement of financial position in the amount of the net investment in finance leasewhich is the aggregate amount of (i) the minimum lease payments to be received by the lessorunder the finance lease and (ii) unguaranteed residual value which becomes a right of the lessor,discounted at interest rate implicit in the lease. The difference between the net investment infinance lease and the gross investment in finance lease (representing the aggregate amount of theminimum lease payments to be received by the lessor under the finance lease and unguaranteedresidual value which becomes the right of the lessor) is allocated as finance income over the termof the lease so as to produce a constant periodic rate of return on the net investment.

Employee Benefits

Our consolidated financial statements adopted SFAS No. 24 (2015 Amendments), “EmployeeBenefits” on Defined Benefit Plans: Employee Contributions, effective January 1, 2016. SFAS No.24 (2015 Amendments) requires an entity to consider contributions from employees or third partieswhen accounting for defined benefit plans. Where the contributions are linked to service, theseshould be attributed to periods of service as a negative benefit. These amendments clarify that, ifthe amount of the contributions is independent of the number of service years, an entity ispermitted to recognize such contributions as a reduction in the service cost in the period in whichthe service is rendered, instead of allocating the contributions to the periods of service.

The adoption of SFAS No. 24 (Amendments 2015) has no significant impact on theconsolidated financial statements.

We have defined contribution pension plans covering substantially all of our eligibleemployees. Our contributions to the retirement plans are recognized as expense when incurred.

In addition, we recognize our estimated liability for employee retirement benefits inaccordance with Labor Law No. 13/2003 dated March 25, 2003 (“Law No. 13”) and long-leaveallowance in accordance with its policies whereby we make benefit payments to employees whohave worked for a certain number of years. Provisions for such employee benefits are estimatedbased on the actuarial valuation prepared by an independent actuary, using the projected unitcredit method. This benefit is unfunded. For employee retirement benefits, re-measurement,comprising actuarial gains and losses, is recognized immediately in our consolidated statement offinancial position with a corresponding debit or credit to retained earnings through othercomprehensive income in the period in which they occur. Re-measurements are not reclassified toprofit or loss in subsequent periods. Past service costs are recognized in profit or loss on theearlier of the date of the plan amendment or curtailment and the date that we recognizerestructuring-related costs.

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Net interest is calculated by applying the discount rate to the net defined benefit liability orasset. Service costs are comprised of current service costs and past service costs, gains and losseson curtailments and non-routine settlements, if any. Net interest expense or income, and servicecosts are recognized in profit or loss.

For other long-term benefits, net interest income or expense, service cost and actuarial gainsor losses are immediately recognized in profit or loss.

Earnings Per Share

Basic earnings per share is computed by dividing profit for the period by the weightedaverage number of ordinary shares outstanding during the period.

We have no outstanding dilutive potential ordinary shares as of December 31, 2013, 2014 or2015 or June 30, 2016 and, accordingly, no diluted earnings per share is calculated and presentedin our consolidated statements of profit or loss and other comprehensive income.

Provisions

Our consolidated financial statements adopted Interpretations of Statement of FinancialAccounting Standards (ISAK) No. 30 (2015), ”Levies”, effective January 1, 2016. ThisInterpretation addresses the accounting for a liability to pay a levy if that liability is within thescope of SFAS No. 57, “Provisions, Contingent Liabilities and Contingent Assets”. It alsoaddresses the accounting for a liability to pay a levy whose timing and amount is certain.

The adoption of ISAK No. 30 (2015) has no significant impact on the consolidated financialstatements.

Provisions are recognized when we have a present obligation (legal and/or constructive) as aresult of a past event, and it is probable that an outflow of resources embodying economicbenefits will be required to settle the obligation and a reliable estimate can be made of the amountof the obligation.

Segment Information

Segment information is based on SFAS No. 5 (Revised 2009), “Operating Segments”, whichrequires disclosures that will enable users of financial statements to evaluate the nature andfinancial effects of the business activities in which the entity engages and the economicenvironments in which it operates. A segment is a distinguishable our component engaged either inproviding certain products (business segment), or in providing products within a particulareconomic environment (geographical segment), which is subject to risks and rewards that aredifferent from those of other segments.

Based on the information used by our management in evaluating our performance, we haveonly one reportable segment (electricity). All of our operational activities are conducted inIndonesia.

Judgments, Estimates and Assumptions

The preparation of consolidated financial statements in conformity with Indonesian FASrequires management to make judgments, estimations and assumptions that affect amounts reportedtherein. Due to inherent uncertainty in making estimates, actual results to be reported in futureperiods may be based on amounts that differ from those estimates.

(i) Judgments

In the process of applying our accounting policies, our management has made its judgmentsas follows:

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Functional currency

The functional currency is the currency of the primary economic environment in which weoperate. Our management considered the currency that mainly influences the revenue and cost ofrendering services and other indicators in determining the currency that most faithfully representsthe economic effects of the underlying transactions, events and conditions.

Classification of financial assets and liabilities

We determine the classification of certain assets and liabilities as financial assets andliabilities if they meet the definition set forth in SFAS No. 55 (Revised 2014) based on ourjudgment.

(ii) Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty atthe reporting date that have a significant risk of causing a material adjustment to the carryingamounts of assets and liabilities within the next financial year are discussed below:

Retirement benefits

Retirement benefits expense under Law No. 13/2003 is determined using actuarial valuations.The actuarial valuation involves assumptions about discount rates, annual salary increases andmortality rates. Due to the long-term nature of this obligation, such estimates are subject tosignificant uncertainty.

Taxes

Deferred tax assets are recognized to the extent that it is probable that sufficient taxableincome will be available against which deferred tax assets can be utilized. However, there is noassurance that we will generate sufficient taxable income to allow all or part of the deferred taxassets to be utilized. We evaluate our projected performance in assessing the sufficiency of futuretaxable income.

Uncertainties exist with respect to the interpretation of complex tax regulations, changes intax laws, and the amount and timing of future taxable income. Given the wide range of businessrelationships and the long-term nature of existing contractual agreements, differences arisingbetween the actual results and the assumptions made, or future changes to such assumptions, couldnecessitate future adjustments to tax income and expenses already recorded. We establishprovisions, if any, based on reasonable estimates, for possible consequences of audits by the taxauthorities. The amount of such provisions, if any, is based on various factors, such as experienceof previous tax audits and differing interpretations of tax regulations by us and the responsible taxauthority. Such differences in interpretation may arise for a wide variety of issues depending onthe conditions prevailing in the respective domicile of us.

Estimating useful life of property, plant and equipment

We estimated the useful lives of our property, plant and equipment based on the period overwhich the assets are expected to be available for use and historical experience. The estimateduseful lives of property, plant and equipment are reviewed at least annually and are updated ifexpectations differ from previous estimates due to physical wear and tear and technical orcommercial obsolescence on the use of these assets.

It is possible that future results of operations could be materially affected by changes inthese estimates brought about by changes in factors mentioned above. A reduction in the estimateduseful lives would increase depreciation expense and decrease non-current assets.

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Evaluation of asset impairment

We review property, plant and equipment for impairment of value. This includes considering

certain indications of impairment such as significant changes in asset usage, significant decline in

assets’ market value, obsolescence or physical damage of an asset, significant underperformance

relative to expected historical or projected future operating results and significant negative

industry or economic trends. An asset is impaired when the recoverable amount, the higher of the

net selling price and value in use, is less than the carrying amount.

We also review our financial assets for impairment of value. This requires an estimation of

the future cash flows from such assets with objective evidence of impairment.

Provision for inventory obsolescence

Provision for inventory obsolescence is estimated based on the best available facts and

circumstances, including but not limited to, the inventories’ own physical conditions. The

provision is re-evaluated and adjusted as additional information received affects the amount

estimated.

Foreign Currency Transactions and Balances

Our functional and presentation currency is the United States (US) Dollar. The function

currency is the currency governing our business activities. We maintain our books of account in

U.S. Dollars.

Transactions involving foreign currencies are recorded in the accounts at U.S. Dollar amounts

using the rates of exchange prevailing at the time the transactions are made. At the statement of

financial position date, monetary assets and liabilities denominated in foreign currency,

substantially in Rupiah, are adjusted to reflect the rates of exchange prevailing at such date, and

the resulting gains or losses are credited or charged to current operations.

As of December 31, 2013, 2014, 2015 and June 30, 2016, the rates of exchange applied were

as follows:

As of December 31, As of June 30

2013 2014 2015 2016

Rupiah ............................................................................... 12,189/US$1 12,440/US$1 13,795/US$1 13,180/US$1

Euro................................................................................... 0.7246/US$1 0.8220/US$1 0.9154/US$1 0.8996/US$1

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Non-GAAP Financial Measures

The following table reconciles our consolidated profit under Indonesian FAS to our definition

of EBITDA for the periods indicated. We define EBITDA as profit for the period before corporate

income tax expense (benefit), depreciation expense, consolidated interest expense and other

non-cash items such as impairment loss on receivables, provision for inventory obsolescence, gain

on sale of equipment, loss (gain) on sale of investments and foreign exchange loss for the periods

presented. You should not compare our EBITDA to EBITDA presented by other companies because

not all companies use the same definition. The term “Consolidated EBITDA,” as used in the

section titled “Description of the Notes” summarizing certain provisions of the Indenture, is

calculated differently from EBITDA and is not a measurement of financial performance or

liquidity under Indonesian GAAP or U.S. GAAP:

For the year ended December 31,

For the six-month period

ended June 30,

2013(1) 2014(1) 2015 2015 2016

(US$ thousands) (unaudited)

Profit for the period .................................. 43,168.3 84,409.8 80,010.6 42,082.4 106,516.6

Adjustments:

Corporate income tax expense

(benefit)(2) ........................................ 19,423.2 27,759.1 28,243.3 11,913.0 (45,962.4)

Depreciation expense(3) ......................... 42,400.9 41,422.1 41,194.7 20,595.9 19,875.5

Consolidated interest expense(4) ............ 36,446.8 36,266.9 36,677.7 18,237.9 18,529.2

Other non-cash items:

Impairment loss on receivables ......... 866.6 472.8 1,045.4 890.7 141.0

Provision for inventory

obsolescence................................. 312.6 89.4 137.1 191.8 183.4

Gain on sale of equipment(5)............. (58.4) (90.7) (160.1) (91.4) (2.3)

Loss (gain) on sale of

investments(6) ............................... 256.0 (399.5) 20.4 4.8 —

Foreign exchange loss(7) ................... 13,112.0 788.9 8,278.9 1,621.4 530.6

EBITDA ................................................... 155,927.9 190,718.8 195,447.9 95,446.3 99,811.7

EBITDA margin (8) .................................. 31.1% 35.0% 35.7% 35.3% 36.3%

Notes

(1) As restated. See “Presentation of Financial Information.”

(2) Corporate income tax expense (benefit) is calculated by adding or deducting the income tax pertaining to

non-recurring items (loss on sale of investments and gain on sale of equipment).

(3) Depreciation of property, plant and equipment. Land rights are not depreciated under the prevailing Indonesian FAS.

(4) Consolidated interest expense consists of finance costs plus borrowing costs capitalized to property, plant and

equipment.

(5) Gain on sale of equipment is calculated by excluding the income tax pertaining to gain on sale of equipment.

(6) Loss on sale of investments is calculated by excluding the income tax pertaining to loss on sale of investments.

(7) Foreign exchange loss consists of unrealized foreign exchange loss during the period.

(8) EBITDA margin is calculated as EBITDA divided by Total Net Sales.

You should not consider our definition of EBITDA in isolation or construe such measure as

an alternative to net income or profitability or as an indicator of operating performance or any

other standard measure under Indonesian FAS or U.S. GAAP.

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Results of Operations

The following table shows a breakdown of our results of operations and each item expressed

as a percentage of its total net sales for each of the periods indicated:

For the year ended December 31,

2013(1) 2014(1) 2015

(US$ thousands, except percentages)

US$ % US$ % US$ %

Net Sales

Industrial estates ............................. 357,613.3 71.3 383,466.6 70.4 381,810.6 69.7

PT Perusahaan Listrik Negara

(Persero) (PLN) .......................... 144,163.9 28.7 161,241.6 29.6 166,084.4 30.3

Total Net Sales .............................. 501,777.2 100.0 544,708.2 100.0 547,895.0 100.0

Cost of Sales .................................. (354,081.1) (70.6) (359,245.5) (66.0) (362,448.5) (66.2)

Gross Profit ................................... 147,696.1 29.4 185,462.7 34.0 185,446.5 33.8

General and administrative

expenses ..................................... (29,268.6) (5.8) (38,084.0) (7.0) (37,998.8) (6.9)

Selling expenses ............................. (4,281.7) (0.9) (4,300.1) (0.8) (4,225.1) (0.8)

Other income

Penalty income ........................... 371.0 0.1 422.3 0.1 311.9 0.1

Gain on sale of equipment .......... 62.3 0.0 94.1 0.0 164.0 0.0

Gain on sale of investments ........ — — 532.6 0.1 — —

Reversal of accruals.................... 436.5 0.1 — — — —

Others......................................... 86.5 0.0 — — — —

Total other income ........................ 956.3 0.2 1,049.0 0.2 475.8 0.1

Other expenses

Loss on foreign exchange, net .... (24,288.9) (4.8) (6,899.1) (1.3) (10,574.4) (1.9)

Tax penalties .............................. — — — — (1,518.8) (0.3)

Loss on sale of investments ........ (294.7) (0.1) — — (6.4) (0.0)

Others......................................... (41.2) (0.0) (58.5) (0.0) (27.3) (0.0)

Total other expenses ...................... (24,624.8) (4.9) (6,957.5) (1.3) (12,126.9) (2.2)

Profit from Operations Before

Income Tax and Finance Costs . 90,477.4 18.0 137,170.1 25.2 131,571.5 24.0

Finance costs .................................. (33,831.8) (6.7) (29,496.7) (5.4) (24,841.6) (4.5)

Interest income ............................... 7,388.8 1.5 5,790.0 1.1 1,901.4 0.3

Final tax on interest income............ (1,477.8) (0.3) (1,158.0) (0.2) (380.3) (0.1)

Profit Before Income Tax .............. 62,556.7 12.5 112,305.4 20.6 108,251.0 19.8

Income Tax Benefit (Expense)

Current ........................................... (4,867.5) (1.0) (29,583.2) (5.4) (24,834.7) (4.5)

Deferred ......................................... (14,520.8) (2.9) 1,687.6 0.3 (3,405.7) (0.6)

Income Tax Expense ...................... (19,388.4) (3.9) (27,895.6) (5.1) (28,240.4) (5.2)

Profit for the Year ......................... 43,168.3 8.6 84,409.8 15.5 80,010.6 14.6

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For the year ended December 31,

2013(1) 2014(1) 2015

(US$ thousands, except percentages)

US$ % US$ % US$ %

Other Comprehensive Income

(Loss)

Item that may be reclassified to

profit or loss:

Changes in fair value of

available-for-sale investments. .... 417.8 0.1 (620.1) (0.1) 14.8 0.0

Income tax relating to changes in

fair value of available-for-sale

investments ................................. (122.2) (0.0) 155.0 0.0 (3.7) 0.0

295.6 0.1 (465.1) (0.1) 11.1 0.0

Item that will not be reclassified to

profit or loss:

Remeasurement gain (loss) on

estimated liability for employee

benefits....................................... 513.0 0.1 (2,711.1) (0.5) (983.6) (0.2)

Income tax relating to

remeasurement gain (loss) on

estimated liability for employee

benefits....................................... (128.2) (0.0) 677.8 0.1 245.9 0.0

384.7 0.1 (2,033.3) (0.4) (737.7) (0.1)

Total Other Comprehensive

Income (Loss) for the Year, Net

of Income Tax ............................ 680.4 0.1 (2,498.4) (0.5) (726.6) (0.1)

Total Comprehensive Income for

the Year ..................................... 43,848.7 8.7 81,911.4 15.0 79,284.0 14.5

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For the six-month period ended June 30,

(unaudited)

2015 2016

(US$ thousands, except percentages)

US$ % US$ %

Net Sales

Industrial estates ................................................................ 186,395.5 68.9 200,181.3 72.9

PT Perusahaan Listrik Negara (Persero) (PLN)................... 84,184.7 31.1 74,486.9 27.1

Total Net Sales ................................................................. 270,580.3 100.0 274,668.2 100.0

Cost of Sales ..................................................................... (180,553.0) (66.7) (181,603.7) (66.1)

Gross Profit ...................................................................... 90,027.3 33.3 93,064.4 33.9

General and administrative expenses .................................. (18,084.3) (6.7) (21,543.9) (7.8)

Selling expenses ................................................................ (1,948.1) (0.7) (2,202.4) (0.8)

Other income

Penalty income .............................................................. 360.7 0.1 264.3 0.1

Gain on sale of equipment ............................................. 95.0 0.0 10.6 0.0

Total other income ........................................................... 455.7 0.2 274.8 0.1

Other expenses

Loss on foreign exchange, net ....................................... (7,474.3) (2.8) (994.5) (0.4)

Tax penalties ................................................................. (152.5) (0.1) — —

Loss on sale of investments ........................................... (6.4) (0.0) — —

Others............................................................................ (6.0) (0.0) (28.1) (0.0)

Total other expenses ......................................................... (7,639.2) (2.8) (1,022.6) (0.4)

Profit from Operations Before Income Tax and Finance

Costs ............................................................................. 62,811.4 23.2 68,570.3 25.0

Finance costs ..................................................................... (9,823.4) (3.6) (8,433.9) (3.1)

Interest income .................................................................. 1,261.7 0.5 532.6 0.2

Final tax on interest income............................................... (252.3) (0.1) (106.5) (0.0)

Profit Before Income Tax ................................................. 53,997.4 20.0 60,562.5 22.0

Income Tax Benefit (Expense)

Current .............................................................................. (9,865.0) (3.6) (17,523.3) (6.4)

Deferred ............................................................................ (2,050.0) (0.8) 71,124.2 25.9

Final tax on revaluation of property, plant and equipment .. — — (7,646.8) (2.8)

Income Tax Benefit (Expense) .......................................... (11,915.0) (4.4) 45,954.1 16.7

Profit for the Period ........................................................ 42,082.4 15.6 106,516.6 38.8

Other Comprehensive Income (Loss)

Item that may be reclassified to profit or loss:

Changes in fair value of available-for-sale investments. ..... 14.8 0.0 7.3 0.0

Income tax relating to changes in fair value of

available-for-sale investments ........................................ (3.7) (0.0) (1.8) (0.0)

11.1 0.0 5.5 0.0

94

For the six-month period ended June 30,

(unaudited)

2015 2016

(US$ thousands, except percentages)

US$ % US$ %

Item that will not be reclassified to profit or loss:

Remeasurement gain (loss) on estimated liability for

employee benefits .......................................................... 915.2 0.3 (320.8) (0.1)

Income tax relating to remeasurement gain (loss) on

estimated liability for employee benefits ........................ (228.8) (0.1) 80.2 0.0

686.4 0.3 (240.6) (0.1)

Total Other Comprehensive Income (Loss) for the

Period, Net of Income Tax ........................................... 697.5 0.3 (235.1) (0.1)

Total Comprehensive Income for the Period ................... 42,779.9 15.8 106,281.5 38.7

Note

(1) As restated. See “Presentation of Financial Information.”

Net Sales

Our net sales consist of connection charges and electricity charges, less any sales discountsgranted to customers. Connection charges are one-time charges incurred whenever a newconnection to a customer’s location is established and is determined based on the voltage level ofthe customer’s connection. Electricity charges are capacity charges based on the customer’scontracted capacity and the variable monthly fees computed based on the number of kWh ofelectricity delivered to the customer.

The following table shows the details of our net sales for each of the periods indicated:

For the year ended December 31,

For the six-month period

ended June 30,

2013(1) 2014(1) 2015 2015 2016

(US$ thousands) (unaudited)

Sales:

Electricity usage - Total ............................ 497,128,9 539,598.2 544,497.0 268,619.4 273,289.2

Connection charges ................................... 4,648.4 5,110.0 3,398.1 1,960.8 1,379.0

Industrial Estates .................................. 357,613.3 383,466.6 381.810.6 186,395.5 200,181.3

PLN...................................................... 144,163.9 161,241.6 166,084.4 84,184.7 74,486.9

Net Sales .................................................. 501,777.2 544,708.2 547,895.0 270,580.3 274,668.2

Note

(1) As restated. See “Presentation of Financial Information.”

Cost of Sales

Our cost of sales consists of direct and indirect costs. The direct costs include natural gas,spare parts, direct labor and diesel fuel costs. The indirect costs include depreciation, salaries andemployee benefits for the technical division employees, repairs and maintenance, insurance, otheroffice and general expenses, inventory loss and freight charges.

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The following table shows a breakdown of our cost of sales for each of the periods indicated:

For the year ended December 31,

For the six-month period

ended June 30,

2013(1) 2014(1) 2015 2015 2016

(US$ thousands) (unaudited)

Cost of Sales:

Direct Cost

Natural gas ............................................... 296,935.1 303,787.3 305,856.9 153.645.3 153,169.3

Spare parts ................................................ 4,486.9 4,272.3 4,981.9 1,619.8 1,540.8

Direct labor .............................................. 768.7 817.2 894.7 451.2 600.8

Diesel fuel ................................................ 327.9 164.2 170.6 55.6 66.9

Total Direct Cost ..................................... 302,518.6 309,041.1 311,904.0 155,771.8 155,377.8

Indirect Cost

Depreciation ............................................. 41,920.6 40,849.6 40,259.6 20,191.9 19,319.4

Salaries and employee benefits ................. 5,120.1 5,234.6 5,734.3 2,709.1 3,773.4

Repairs and maintenance ........................... 2,629.3 2,601.3 2,790.5 960.7 2,080.3

Insurance .................................................. 902.1 910.4 1,008.3 480.5 534.9

Other office and general expenses ............. 498.6 470.2 521.4 201.7 311.5

Inventory loss ........................................... 312.6 89.4 137.1 191.8 183.4

Freight charges ......................................... 179.2 48.9 93.6 45.5 23.1

Total Indirect Cost .................................. 51,562.4 50,204.4 50,544.6 24.781.2 26,226.0

Total Cost of Sales .................................. 354,081.1 359,245.5 362,448.5 180,553.0 181,603.7

Note

(1) As restated. See “Presentation of Financial Information.”

General and Administrative Expenses

Our general and administrative expenses include salaries and employee benefits for the

commercial division (excluding marketing department) employees, office and general expenses,

professional fees, depreciation, impairment loss on receivables, and repairs and maintenance.

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The following table shows a breakdown of our general and administrative expenses for each

of the periods indicated:

For the year ended December 31,

For the six-month period

ended June 30,

2013(1) 2014(1) 2015 2015 2016

(US$ thousands) (unaudited)

General and Administrative Expenses:

Salaries and employee benefits ................. 23,452.0 28,864.8 28,215.9 13,754.7 17,462.4

Office and general expenses ...................... 3,269.9 6,125.1 5,161.9 2,125.2 2,201.7

Professional fees ....................................... 1,086.6 1,916.9 2,504.9 823.2 1,135.6

Depreciation ............................................. 438.2 532.6 856.0 370.0 510.8

Impairment loss on receivables ................. 866.6 472.8 1,045.4 890.7 141.0

Repairs and maintenance ........................... 155.3 171.9 214.7 120.6 92.3

Total general and administrative

expenses ............................................... 29,268.6 38,084.0 37,998.8 18,084.3 21,543.9

Note

(1) As restated. See “Presentation of Financial Information.”

Selling Expenses

Our selling expenses include commitment fees, which are fees payable to developers of

industrial estates, salaries and employees’ benefits for the marketing department employees,

promotions, representation and entertainment expenses, depreciation and others.

The following table shows a breakdown of our selling expenses for each of the periods

indicated:

For the year ended December 31,

For the six-month period

ended June 30,

2013(1) 2014(1) 2015 2015 2016

(US$ thousands) (unaudited)

Selling Expenses:

Commitment fees ...................................... 3,023.0 3,159.3 3,131.3 1,522.1 1,614.8

Salaries and employee benefits ................. 625.3 725.2 698.5 285.3 355.1

Representation and entertainment .............. 232.8 106.7 81.8 28.0 70.2

Promotions................................................ 245.8 159.7 115.0 41.2 49.1

Depreciation ............................................. 42.1 40.0 79.1 34.0 45.3

Others ....................................................... 112.6 109.3 119.4 37.6 67.8

Total selling expenses .............................. 4,281.7 4,300.1 4,225.1 1,948.1 2,202.4

Note

(1) As restated. See “Presentation of Financial Information.”

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Other Income/Expense

Other income/expense consists of penalty income derived from the 2% monthly penaltycharged to late-paying customers, net losses on foreign exchange, net gains or losses on sale ofinvestments and equipment, tax penalties, reversal of accruals and other miscellaneous income(expenses). We record gains or losses on foreign exchange due to the appreciation or depreciationof the U.S. Dollar versus Rupiah (or other currencies besides than the U.S. Dollar) after periodicrevaluations of our assets and obligations denominated in Rupiah or other currencies.

Finance Costs

Finance costs consist of interest expenses and other financing costs.

Interest Income

Interest income consists of interest earned from cash deposits and short-term investments.

Income Tax Expense

The rate of corporate tax in Indonesia was 25% for each of the years ended December 31,2013, 2014 and 2015 and for the six-month period ended June 30, 2016. Our effective tax rate was31.0%, 24.8% and 26.0% for the years ended December 31, 2013, 2014, and 2015, respectively,and 75.9% for the six-month period ended June 30, 2016. Current income tax expense is derivedby taking the income tax calculated by applying the applicable tax rate of 25% to the profit beforeincome tax, adjusted for certain income and expense items which are not assessable or deductiblefor tax purposes. Deferred income tax expense (benefit) is recognized in the event of anytemporary differences between the financial and the tax bases of assets and liabilities at eachreporting date.

Six-month period ended June 30, 2016 compared to six-month period ended June 30, 2015

Net Sales. Our total net sales increased by 1.5% from US$270.6 million for the six-monthperiod ended June 30, 2015 to US$274.7 million for the six-month period ended June 30, 2016.Net sales to industrial estate customers increased 7.4% from US$186.4 million to US$200.2million, primarily due to a 6.6% increase in total kWh of electricity supplied and a 0.7% increasein tariffs charged to industrial estate customers, while sales to PLN decreased 11.5% fromUS$84.2 million to US$74.5 million, primarily due to a 3.1% decrease in tariffs charged to PLNand an 8.7% decrease in total kWh of electricity supplied to PLN. The decrease in tariffs chargedto PLN was agreed under the 3-year extension of PLN’s additional 150 MW purchase commitmententered into between us and PLN in January 2016.

Cost of Sales. Our cost of sales increased 0.6% from US$180.6 million for the six-monthperiod ended June 30, 2015 to US$181.6 million for the six-month period ended June 30, 2016primarily due to increases in our indirect costs, partially offset by a slight decrease in our directcosts:

• Direct costs. Our direct costs decreased 0.3% from US$155.8 million for the six-monthperiod ended June 30, 2015 to US$155.4 million for the six-month period ended June30, 2016, primarily due to the reduced costs associated with the expiration of along-term gas transportation contract with PT Rabana Gasindo Utama in December2015.

• Indirect costs. Our indirect costs increased 5.6% from US$24.8 million for thesix-month period ended June 30, 2015 to US$26.2 million for the six-month periodended June 30, 2016, primarily due to increases in repairs and maintenance costs paidin early 2016 resulting from scheduled maintenance carried out in late 2015 and salariesand employee benefits.

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General and Administrative Expenses. Our general and administrative expenses increased by18.8% from US$18.1 million for the six-month period ended June 30, 2015 to US$21.5 million forthe six-month period ended June 30, 2016, primarily due to an increase in salaries and employeebenefits and professional fees, partially offset by a decrease in impairment loss on receivables.

Selling Expenses. Our selling expenses increased by 15.8% from US$1.9 million for thesix-month period ended June 30, 2015 to US$2.2 million for the six-month period ended June 30,2016, primarily due to an increase in commitment fees payable to developers of the industrialestates, which is in line with the increase in industrial estates revenue, and salaries and employeebenefits.

Other Income. Our other income decreased 40% from US$0.5 million for the six-monthperiod ended June 30, 2015 to US$0.3 million for the six-month period ended June 30, 2016,primarily due to decreases in gain on sale of equipment and investments.

Other Expenses. Our other expenses decreased 86.8% from US$7.6 million for the six-monthperiod ended June 30, 2015 to US$1.0 million for the six-month period ended June 30, 2016,primarily due to a decrease in net loss on foreign exchange as a result of the Rupiah’sappreciation against the U.S. Dollar for the six-month period ended June 30, 2016.

Profit from Operations before Income Tax and Finance Costs. Our profit from operationsbefore income tax and finance costs increased 9.2% from US$62.8 million for the six-monthperiod ended June 30, 2015 to US$68.6 million for the six-month period ended June 30, 2016. Asa percentage of our total net sales, profit from operations before income tax and finance costsincreased from 23.2% for the six-month period ended June 30, 2015 to 25.0% for the six-monthperiod ended June 30, 2016.

Finance Costs. Our finance costs decreased 14.3% from US$9.8 million for the six-monthperiod ended June 30, 2015 to US$8.4 million for the six-month period ended June 30, 2016,primarily due to a decrease in interest expense as a result of capitalization of interest to property,plant and equipment for the construction of our coal-fired power plant, partially offset by anincrease in other financing costs.

Interest Income. Our interest income net of tax decreased 60% from US$1.0 million for thesix-month period ended June 30, 2015 to US$0.4 million for the six-month period ended June 30,2016, primarily due to a decrease in the principal amount of our time deposits for the six-monthperiod ended June 30, 2016.

Profit before Income Tax. Our profit before income tax increased 12.2% from US$54.0million for the six-month period ended June 30, 2015 to US$60.6 million for the six-month periodended June 30, 2016.

Income Tax Benefit. We had a net income tax benefit of US$46.0 million for the six-monthperiod ended June 30, 2016, compared with a net income tax expense of US$11.9 million for thesix-month period ended June 30, 2015, primarily due to our recognition for the six-month periodended June 30, 2016 of a deferred income tax benefit in connection with a revaluation of property,plant and equipment which will be depreciated over the next 16 years and claimed as a deductibleexpense for tax purposes.

Profit for the Period. As a result of the foregoing factors, our profit for the period increased153.0% from US$42.1 million for the six-month period ended June 30, 2015 to US$106.5 millionfor the six-month period ended June 30, 2016. As a percentage of our total net sales, our profit forthe period increased from 15.6% for the six-month period ended June 30, 2015 to 38.8% for thesix-month period ended June 30, 2016.

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Year ended December 31, 2015 compared to year ended December 31, 2014

Net Sales. Our total net sales increased by 0.6% from US$544.7 million in 2014 to US$547.9million in 2015, primarily due to an increase in average tariffs of 1.1% partially offset by a 0.5%decrease in total kWh of electricity supplied. Net sales to industrial estate customers decreased0.4% from US$383.5 million in 2014 to US$381.8 million in 2015, due to a decrease inconnection charges in 2015. Sales to PLN increased 3.0% from US$161.2 million in 2014 toUS$166.1 million in 2015, reflecting an increase in electricity supplied to PLN.

Cost of Sales. Our cost of sales increased 0.9% from US$359.2 million in 2014 to US$362.4million in 2015 primarily due to increases in our direct and indirect costs:

• Direct costs. Our direct costs increased 0.9% from US$309.0 million in 2014 toUS$311.9 million in 2015, primarily due to an increase in the unit cost of natural gaspurchased from Pertamina from US$5.7/MMBTU to US$5.8/MMBTU.

• Indirect costs. Our indirect costs increased 0.6% from US$50.2 million in 2014 toUS$50.5 million in 2015, primarily due to increases in repairs and maintenance costsresulting from scheduled maintenance in 2015 and salaries and employee benefitspartially offset by a decrease in depreciation costs.

General and Administrative Expenses. Our general and administrative expenses decreased by0.3% from US$38.1 million in 2014 to US$38.0 million in 2015, reflecting a decrease in salariesand employee benefits and other office and general expenses resulting from the Rupiah’sdepreciation against the U.S. Dollar, partially offset by increases in professional fees andimpairment loss on receivables.

Selling Expenses. Our selling expenses remained stable at US$4.3 million and US$4.2 millionin 2014 and 2015, respectively.

Other Income. Our other income decreased 50.0% from US$1.0 million in 2014 to US$0.5million in 2015, primarily due to a one-time gain of US$0.5 million in 2014 from the sale ofinvestments in certain debt securities

Other Expenses. Our other expenses increased 72.9% from US$7.0 million in 2014 toUS$12.1 million in 2015, primarily due to a 53.6% increase in net loss on foreign exchange fromUS$6.9 million in 2014 to US$10.6 million in 2015 as a result of the Rupiah’s depreciationagainst the U.S. Dollar in 2015 combined with payment of US$1.5 million in tax deficiencies in2015, which were assessed after a routine audit of our income tax for the years 2010 to 2013.

Profit from Operations before Income Tax and Finance Costs. Our profit from operationsbefore income tax and finance costs decreased 4.1% from US$137.2 million in 2014 to US$131.6million in 2015. As a percentage of our total net sales, profit from operations before income taxand finance costs decreased from 25.2% in 2014 to 24.0% in 2015.

Finance Costs. Our finance costs decreased 15.9% from US$29.5 million in 2014 to US$24.8million in 2015, primarily due to a decrease in interest expense as a result of capitalization ofinterest to property, plant and equipment for the construction of our coal-fired power plant and thepurchase of the gas turbine in our second gas-fired power plant.

Interest Income. Our interest income net of tax decreased 67.4% from US$4.6 million in2014 to US$1.5 million in 2015, primarily due to a decrease in the principal amount of our timedeposits in 2015.

Profit before Income Tax. Our profit before income tax decreased 3.6% from US$112.3million in 2014 to US$108.3 million in 2015.

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Income Tax Expense. Our net income tax expense increased 1.1% from US$27.9 million in2014 to US$28.2 million in 2015, primarily due to our recognition in 2014 of a deferred incometax benefit to partially offset our current income tax expense, whereas in 2015 we recognizeddeferred income tax expense in relation to the Rupiah’s depreciation against the U.S. Dollar. As apercentage of profit before income tax, our income tax expense increased from 24.8% in 2014 to26.0% in 2015.

Profit for the Year. As a result of the foregoing factors, our profit for the year decreased5.2% from US$84.4 million in 2014 to US$80.0 million in 2015. As a percentage of our total netsales, our profit for the year decreased from 15.5% in 2014 to 14.6% in 2015.

Year ended December 31, 2014 compared to year ended December 31, 2013

Net Sales. Our total net sales increased 8.5%, from US$501.8 million in 2013 to US$544.7million in 2014, primarily due to a 6.5% increase in the total kWh of electricity supplied and a2.0% increase in average tariffs. Net sales to industrial estate customers increased 7.2% fromUS$357.6 million in 2013 to US$383.5 million in 2014, reflecting the addition of new customersas well as increased demand from existing customers. Net sales to PLN increased 11.8% fromUS$144.2 million in 2013 to US$161.2 million in 2014, reflecting increased demand under theamended EPSPA.

Cost of Sales. Our cost of sales increased 1.4% from US$354.1 million in 2013 to US$359.2million in 2014 primarily due to an increase in our direct costs, partially offset by a decrease inour indirect costs:

• Direct costs. Our direct costs increased 2.1% from US$302.5 million in 2013 toUS$309.0 million in 2014, primarily due to a contractually required 3.0% increase inthe unit cost of natural gas purchased from Pertamina from US$5.5/MMBTU toUS$5.7/MMBTU, and a 3.2% increase in total gas consumption, reflecting theexpansion of our operations and installed generation capacity.

• Indirect costs. Our indirect costs decreased 2.7% from US$51.6 million in 2013 toUS$50.2 million in 2014, primarily due to a decrease in depreciation costs andinventory loss.

General and Administrative Expenses. Our general and administrative expenses increased30.0% from US$29.3 million in 2013 to US$38.1 million in 2014. The increase in general andadministrative expenses was primarily due to an increase in salaries and employee benefits andother office and general expenses.

Selling Expenses. Our selling expenses remained stable at US$4.3 million in 2013 and 2014.

Other Income. Our other income remained stable at US$1.0 million in 2013 and 2014. Weexperienced a one-time gain on sale of investments in certain debt securities in 2014 which wasoffset by a reversal of accruals in 2013.

Other Expenses. Our other expenses decreased 71.5% from US$24.6 million in 2013 toUS$7.0 million in 2014, primarily due to a 71.6% decrease in net loss on foreign exchange fromUS$24.3 million in 2013 to US$6.9 million in 2014 as a result of the Rupiah’s depreciationagainst the U.S. Dollar in 2013.

Profit from Operations before Income Tax and Finance Costs. Our profit from operationsbefore income tax and finance costs increased 51.6% from US$90.5 million in 2013 to US$137.2million in 2014. As a percentage of our total net sales, profit from operations before income taxand finance costs increased from 18.0% in 2013 to 25.2% in 2014.

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Finance Costs. Our finance costs decreased 12.7% from US$33.8 million in 2013 to US$29.5

million in 2014, primarily due to a decrease in interest expense as a result of the redemption of

the remaining Senior Notes due 2015 of US$19.4 million in February 2013.

Interest Income. Our interest income net of tax decreased 22.0% from US$5.9 million in

2013 to US$4.6 million in 2014, primarily due to a decrease in the principal amount of our time

deposits in 2014.

Profit before Income Tax. Our profit before income tax increased 79.4% from US$62.6

million in 2013 to US$112.3 million in 2014.

Income Tax Expense. Our income tax expense increased 43.8% from US$19.4 million in 2013

to US$27.9 million in 2014, primarily due to a 79.4% increase in profit before income tax. As a

percentage of profit before income tax, our income tax expense decreased from 31.0% in 2013 to

24.8% in 2014.

Profit for the Year. As a result of the foregoing factors, our profit for the year increased

95.4% from US$43.2 million in 2013 to US$84.4 million in 2014. As a percentage of our total net

sales, our profit for the year increased from 8.6% in 2013 to 15.5% in 2014.

Liquidity and Capital Resources

Working Capital, Cash and Indebtedness

We fund our working capital requirements through cash flow from operating activities,

working capital facilities and proceeds from other borrowings such as the 2019 Notes. We also

raised US$173.0 million in net proceeds from issuance of new shares in connection with our

initial public offering in June 2016. We had cash and cash equivalents of US$130.7 million as of

December 31, 2013, US$95.3 million as of December 31, 2014, US$57.6 million as of December

31, 2015 and US$226.3 million as of June 30, 2016. As of June 30, 2016, we had unused

committed credit facilities from PT Bank UOB Indonesia, Standard Chartered Bank and Citibank,

N.A. Jakarta amounting to US$53.0 million, US$14.8 million and US$47.0 million, respectively.

We believe that our cash generated from our operating activities, together with a portion of

the net proceeds from the issuance of new shares in connection with our initial public offering in

June 2016, will be sufficient to finance our working capital needs for at least the next 12 months.

As of June 30, 2016, our total indebtedness was US$496.1 million. The interest rate for our

total outstanding indebtedness was 6.95% during the first six months of 2016. Upon completion of

the offering of the Notes and the application of the net proceeds therefrom, our only outstanding

debt will be the credit facility with Standard Chartered Bank (Jakarta Branch), the letter of credit

facility with Citibank N.A., Jakarta, and the credit facility with Citibank N.A., Jakarta and the

Notes. See “Use of Proceeds” and “Description of Existing Indebtedness.”

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Cash Flow

The following table sets forth certain information concerning our historical cash flows:

For the year ended December 31,

For the six-month period

ended June 30,

2013(1) 2014(1) 2015 2015 2016

(US$ thousands) (unaudited)

Net cash provided by operating activities .. 68,520.8 162,430.6 147,033.5 66,934.1 63,864.8

Net cash used in investing activities ......... (167,156.9) (153,751.1) (175,251.2) (97,563.8) (69,650.5)

Net cash provided by (used in) financing

activities ............................................... (55,433.8) (42,083.2) (5,000.0) — 172,964.9

Net increase (decrease) in cash and cash

equivalents ........................................... (154,069.9) (33,403.7) (33,217.7) (30,629.7) 167,179.2

Effect of exchange rate changes on cash

and cash equivalents ............................. (19,588.4) (2,052.6) (4,442.8) (3,976.9) 1,476.7

Cash and cash equivalents at beginning of

the period ............................................. 304,401.5 130,743.2 95,286.9 95,286.9 57,626.3

Cash and cash equivalents at end of the

period ................................................... 130,743.2 95,286.9 57,626.3 60,680.2 226,282.2

Note(1) As restated. See “Presentation of Financial Information.”

Over the past three years, our primary source of liquidity has been cash flow from operatingactivities and debt financing activities. Our main uses of funds have been to pay for our workingcapital requirements and to pay for capital expenditures in connection with our capacityexpansions. Our working capital requirements include the purchase of gas and diesel fuel, repairand maintenance costs, direct labor costs, general and administrative expenses, selling expensesand payments of interest on the 2019 Notes. We re-evaluate our capital requirements regularly inlight of our cash flow from operations, our capacity expansion plans and market conditions. To theextent that we do not generate sufficient cash flow from our operations and depending on marketconditions, we may have to rely on other financing activities and obtain additional debt or equityfinancing.

Cash Flows From Operating Activities

Our net cash provided by operating activities decreased by US$3.0 million, or 4.5%, fromUS$66.9 million for the six-month period ended June 30, 2015 to US$63.9 million for thesix-month period ended June 30, 2016, due primarily to an increase in cash paid to suppliers andemployees of US$4.6 million, or 2.5%, from US$181.4 million for the six-month period endedJune 30, 2015 to US$186.0 million for the six-month period ended June 30, 2016 and an increasein income tax paid of US$10.2 million, or 79.7%, from US$12.8 million for the six-month periodended June 30, 2015 to US$23.0 million for the six-month period ended June 30, 2016, due to taxoffice adjustments to our estimated tax liabilities and a tax prepayment made in furtherance of ourapplication for a tax incentive offered under new regulations. The tax incentive would allow us toclaim the depreciation from a revaluation on property, plant and equipment as a deductibleexpense. See note 11h to our audited consolidated financial statements and our unaudited interimconsolidated financial statements. For the six-month period ended June 30, 2016, our net cashprovided by operating activities consisted of cash receipts from customers of US$280.7 million,cash paid to suppliers and employees of US$186.0 million, payments of finance costs of US$7.8million and income tax paid of US$23.0 million. For the six-month period ended June 30, 2015,our net cash provided by operating activities consisted of cash receipts from customers ofUS$270.3 million, cash paid to suppliers and employees of US$181.4 million, payments of financecosts of US$9.2 million and income tax paid of US$12.8 million.

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Our net cash provided by operating activities decreased by US$15.4 million, or 9.5%, fromUS$162.4 million in 2014 to US$147.0 million in 2015, due primarily to a decrease in cashreceipts from customers of US$6.1 million, or 1.1%, from US$547.8 million in 2014 to US$541.7million in 2015, a decrease in cash paid to suppliers and employees of US$8.0 million, or 2.4%,from US$339.2 million in 2014 to US$331.2 million in 2015 and an increase in income tax paidof US$22.1 million, or 124.2%, from US$17.8 million in 2014 to US$39.9 million in 2015, due totax office adjustments to our estimated tax liabilities and a tax prepayment made in furtherance ofour application for a tax incentive offered under new regulations. The tax incentive would allowus to claim the depreciation from a revaluation on property, plant and equipment as a deductibleexpense. See note 11h to our audited consolidated financial statements. In 2015, our net cashprovided by operating activities consisted of cash receipts from customers of US$541.7 million,cash paid to suppliers and employees of US$331.2 million, payments of finance costs of US$23.6million and income tax paid of US$39.9 million.

Our net cash provided by operating activities increased by US$93.9 million, or 137.1%, fromUS$68.5 million in 2013 to US$162.4 million in 2014, due primarily to an increase in cashreceipts from customers of US$48.2 million, or 9.6%, from US$499.6 million in 2013 to US$547.8million in 2014 and a decrease in cash paid to suppliers and employees of US$35.5 million, or9.5%, from US$374.7 million in 2013 to US$339.2 million in 2014. In 2014, our net cashprovided by operating activities consisted of cash receipts from customers of US$547.8 million,cash paid to suppliers and employees of US$339.2 million, payments of finance costs of US$28.3million and income tax paid of US$17.8 million.

Our net cash provided by operating activities was US$68.5 million in 2013, which consistedof cash receipts from customers of US$499.6 million, cash paid to suppliers and employees ofUS$374.7 million, payments of finance costs of US$33.3 million and income tax paid of US$23.1million.

Cash Flows From Investing Activities

Our net cash used in investing activities was US$69.7 million for the six-month periodperiod ended June 30, 2016, primarily related to (i) acquisitions of property, plant and equipmentof US$62.3 million primarily attributable to the construction of our new coal-fired power plantand (ii) advances for purchase of property, plant and equipment of US$7.1 million primarilyattributable to the construction of our new coal-fired power plant.

Our net cash used in investing activities was US$97.6 million for the six-month periodperiod ended June 30, 2015, primarily related to (i) acquisitions of property, plant and equipmentof US$95.7 million primarily attributable to the construction of our new coal-fired power plantand our second gas-fired power plant and (ii) advances for purchase of property, plant andequipment of US$3.5 million primarily attributable to the construction of our new coal-fired powerplant and our second gas-fired power plant, partially offset by proceeds from sale of investmentsof US$2.9 million relating to our sale of debt securities.

Our net cash used in investing activities was US$175.3 million in 2015, primarily related to(i) acquisitions of property, plant and equipment of US$173.4 million primarily attributable to theconstruction of our new coal-fired power plant and our second gas-fired power plant, and (ii)advances for purchase of property, plant and equipment of US$3.5 million primarily attributable tothe construction of our new coal-fired power plant and our second gas-fired power plant, partiallyoffset by proceeds from sale of investments of US$2.9 million relating to our sale of debtsecurities.

Our net cash used in investing activities was US$153.8 million in 2014, primarily related to(i) acquisitions of property, plant and equipment of US$162.5 million primarily attributable to theconstruction of our second gas-fired power plant and our new coal-fired power plant, (ii) advancesfor purchase of property, plant and equipment of US$2.5 million primarily attributable to the

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construction of our second gas-fired power plant and new coal-fired power plant, and (iii)

purchase of investments of US$14.5 million relating to our purchase of debt securities, partially

offset by proceeds from sale of investments of US$26.1 million relating to our sale of debt

securities.

Our net cash used in investing activities was US$167.2 million in 2013, primarily related to

(i) acquisitions of property, plant and equipment of US$142.6 million primarily attributable to the

construction of our second gas-fired power plant and new coal-fired power plant, (ii) advances for

purchase of property, plant and equipment of US$23.2 million primarily attributable to the

construction of our second gas-fired power plant and new coal-fired power plant, partially offset

by purchase of investments of US$6.3 million relating to our purchase of debt securities, partially

offset by proceeds from sale of investments of US$5.5 million relating to our sale of debt

securities.

Net Cash Flows from Financing Activities

We had net cash provided by financing activities of US$173.0 million for the six-month

period ended June 30, 2016, which is related to the net proceeds from issuance of new shares in

connection with our initial public offering in June 2016. We did not have any cash flows from

financing activities for the six-month period ended June 30, 2015.

Our cash used in financing activities was US$5.0 million in 2015, which related to our

payments of cash dividends.

Our cash used in financing activities was US$42.1 million in 2014, which related to our

payments of cash dividends.

Our cash used in financing activities was US$55.4 million in 2013, which related to (i) our

payments of cash dividends of US$36.0 million and (ii) our payments of notes payable of US$19.4

million relating to our redemption of the remaining outstanding principal balance of the 2015

Notes.

Contractual Commitments and Capital Expenditures

The following table sets forth information regarding our contracts and commitments as of

June 30, 2016 for the following periods:

Payments due by period

Total

Less than 1

year 1-3 years 3-5 years

More than 5

years

(US$ millions)

Description of Contractual Obligations

Long-Term Debt Obligations (principal

amount) ................................................ 500.0 — 500.0 — —

Other Long-Term Liabilities Reflected on

Our Statement of Financial Position(1) .. 68.2 1.9 2.1 — 64.2

Total......................................................... 568.2 1.9 502.1 — 64.2

Note

(1) Consists of other payables, estimated liability for employee benefits and customers’ deposits which amounted to

US$4.0 million, US$23.7 million and US$40.5 million, respectively, totaling US$68.2 million as of June 30, 2016.

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Coal-Fired Power Plant Construction

We are currently constructing a coal-fired power plant on an approximately 72 hectare site inBabelan, Bekasi, which is about 20 kilometers east of Jakarta. The coal-fired power plant willconsist of two turbines, each being capable of producing installed generation capacity ofapproximately 140 MW, representing total installed generation capacity of approximately 280 MW.See “Business — Coal-Fired Power Plant Construction.” As of June 30, 2016, we had spentUS$391.7 million in constructing our coal-fired power plant, and we estimate the construction ofthe coal-fired power plant will require a total investment of US$475.1 million. These amountsinclude direct construction costs such as direct labor, material and equipment costs, as well asother expenses such as development, project management, spare parts, start-up, sales tax andinsurance (as the case may be).

Material Contracts and Commitments

The following table sets forth information regarding our material contracts and commitmentsfor the following periods.

Expenses incurred for the year ended

December 31,

Expenses incurred for the

six-month period ended

June 30,

Supplier’s Name Services Provided 2013 2014 2015 2015 2016

(US$ thousands)

PT Perusahaan Gas

Negara (Persero) Tbk ... Supply of natural gas 171,185.6 180,319.4 168,127.0 89,312.9 76,846.7

PT Pertamina (Persero) .... Supply of natural gas 103,318.8 102,292.7 123,413.7 55,645.5 68,407.7

PT Rabana Gasindo

Makmur ...................... Supply of natural gas 14,042.5 12,651.5 7,849.8 4,109.4 83.1

PT Gasindo Pratama

Sejati ...........................

Transportation of

natural gas 5,080.7 5,212.6 2,844.4 2,760.4 5,267.7

PT Rabana Gasindo

Utama ..........................

Transportation of

natural gas 3,310.5 3,312.4 2,500.2 1,528.7 —

Off-Balance Sheet Arrangements

As of the date of this offering memorandum, we did not have any off-balance sheetarrangements or contingent liabilities.

Quantitative and Qualitative Disclosures about Market Risks

Market risk is the risk of loss related to adverse changes in market prices, including interestrates and foreign exchange rates, of financial instruments. We are exposed to various types ofmarket risk, including changes in interest rates and foreign exchange rates, in the ordinary courseof business. As of the date of this offering memorandum, we did not hedge against financial ormarket risks.

We maintain our accounting records and prepare our consolidated financial statements in U.S.Dollars.

Exchange Rate Risk

Our functional currency is U.S. Dollars. We are exposed to foreign exchange risk as costs ofour key purchases are denominated in Rupiah and other currencies different from our functionalcurrency. However, tariffs for both industrial estate customers and PLN include automaticadjustments for currency fluctuations and are billed to customers in Rupiah at the prevailingexchange rate at the time of billing. While our Rupiah-denominated revenues are subject to

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exchange rate fluctuations, in U.S. Dollar terms, our tariffs remain constant regardless of the

Rupiah-U.S. Dollar exchange rate. However, depreciation of the Rupiah against the U.S. Dollar

may negatively impact the ability of our customers to pay electricity bills or comply with their

obligations under their agreements with us. See “Risk Factors—Risks Relating to Our

Business—Exchange rate fluctuations may materially and adversely affect our business, financial

condition or results of operations.”

Interest Rate Risk

We are exposed to interest rate risk. Our exposure to market risk for changes in interest rates

relates primarily to our cash deposited in interest bearing accounts and long-term debt obligations.

Borrowing at fixed interest rates exposes us to fair value interest rate risk.

Commodity Price Risk

Our exposure to commodity price risk relates primarily to the purchase of natural gas and

other fuels. Our exposure to price risk is manageable as the cost of gas is recoverable from our

customers as part of the price of electricity charged to customers. When the new coal-fired power

plant becomes operational, we will also be subject to coal price risk.

Inflation

According to the Indonesian Bureau of Statistics, Indonesia’s annual overall inflation as

measured by the consumer price index was approximately 8.4% in 2013, 8.4% in 2014 and 6.4%

in 2015. We do not consider inflation in Indonesia, where all of our operations are currently

located, to have had a material impact on our results of operations.

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INDUSTRY OVERVIEW

Power Demand in Indonesia

The ongoing transformation of Indonesia from an agricultural to a manufacturing-orientedeconomy has played a particularly important role in the growth of demand for electricity. Theagricultural sector is characterized by a low level of electricity consumption, despite theincreasing use of electric motors, pumps and other electrical equipment. In contrast, themanufacturing sector relies heavily on electricity as a major source of energy. The expansion ofthe commercial sector in Indonesia, which generally consumes a higher level of electricity thanthe agricultural sector, has similarly contributed to the growth of demand for electricity inIndonesia through time.

The following table sets forth certain information regarding Indonesia’s GDP by sector from2011 to 2015, at 2010 constant market prices:

Year ended December 31,Three months

ended March 31,

2011 2012 2013 2014 2015 2016

(Rpbillions) (%)

(Rpbillions) (%)

(Rpbillions) (%)

(Rpbillions) (%)

(Rpbillions) (%)

(Rpbillions) (%)

Manufacturing ............ 1,607,452 22.1 1,697,787 22.0 1,771,962 21.7 1,853,688 21.6 1,932,457 21.5 489,540 21.6

Agriculture, livestock,

forestry and

fishing ................... 993,857 13.6 1,039,441 13.5 1,083,142 13.3 1,129,053 13.2 1,174,457 13.1 287,926 12.7

Services/Commercial .. 673,330 9.2 708,995 9.2 747,170 9.2 785,647 9.2 836,677 9.3 209,793 9.3

Mining and quarrying . 748,956 10.3 771,562 10.0 791,054 9.7 796,712 9.3 756,239 8.4 188,993 8.4

Others ........................ 3,264,039 44.8 3,509,299 45.4 3,763,170 46.1 4,001,172 46.7 4,277,101 47.6 1,086,388 48.0

Total GDP ................. 7,287,635 100.0 7,727,083 100.0 8,156,498 100.0 8,566,271 100.0 8,976,932 100.0 2,262,640 100.0

Source: Biro Pusat Statistik

Other factors contributing to the growth of power demand in Indonesia include increasingaffluence and the urbanization of the Indonesian population. Increasing affluence and improvingstandards of living in Indonesia have generally resulted in higher per capita consumption ofelectricity through the greater use of air conditioners and electrical household appliances.Increased urbanization has also generally reduced the number of persons per dwelling, leading to alarger number of electricity consuming households.

The following table sets forth certain information regarding per capita consumption ofelectricity across selected economies in Asia in 2013:

Per Capita

Consumption

of Electricity

(kWh/capita)

Korea............................................................................................................................................................ 10,428

Singapore...................................................................................................................................................... 8,840

Japan ............................................................................................................................................................ 7,836

Hong Kong ................................................................................................................................................... 5,934

Malaysia ....................................................................................................................................................... 4,512

China ............................................................................................................................................................ 3,762

Thailand ....................................................................................................................................................... 2,471

Vietnam ........................................................................................................................................................ 1,306

Indonesia ...................................................................................................................................................... 788

Philippines .................................................................................................................................................... 692

Source: World Bank

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According to Perusahaan Listrik Negara (“PLN”), Indonesia’s state-owned power utilitycompany, Indonesia’s electricity demand is expected to increase from 200 terawatt-hours (“TWh”)in 2015 to 315 TWh in 2020 at a CAGR of 9.5%.

Generation Capacity in Indonesia

PLN is the dominant participant in domestic power generation. Total installed generationcapacity in Indonesia amounted to 52,899 MW as of December 31, 2015, of which PLN (includingrental capacity) accounted for 43,925 MW, or 83% of total installed generation capacity. There hasbeen, however, a renewed emphasis on private sector investments primarily in IPPs, whichindicates a return to development plans set in place before the Asian economic crisis in 1997. Asof December 31, 2015, installed capacity attributable to IPPs amounted to 8,965 MW (or 17% ofthe total installed generation capacity).

The following table sets forth the total installed generation capacity for PLN and the IPPs inIndonesia:

As of December 31,

2011 2012 2013 2014 2015

Installed Generation Capacity (MW)

PLN .......................................................... 29,268.2 32,901.5 34,205.2 39,257.6 40,295.2

Leased Power Plants ................................. 2,906.3 3,710.4 4,296.4 4,412.4 3,629.5

IPPs .......................................................... 6,925.2 7,360.3 7,601.8 7,950.7 8,964.5

Total Installed Generation Capacity ....... 39,099.7 43,972.2 46,103.5 51,620.6 52,889.2

Source: PLN

Indonesia is in need of a substantial increase in generation capacity. The country has faced ashortage of generating power, a problem made worse by the lack of an integrated national grid.Despite the nominal reserve margin of the Java-Bali power grid being 31% in 2015, PLN isexpecting a downward trend for the reserve margin going forward due to rising electricity demandand potential delays in the commissioning of certain IPP projects.

Historically, as PLN’s facilities were mainly fuel oil-based, high fuel oil prices resulted inrising fuel expenses and increased government subsidy. As a result, PLN was mandated by theGovernment (pursuant to Presidential Regulation No. 71/2006 as amended) to implement the FastTrack Program I to build 10,000 MW of more economical coal-fired generation plants. In additionto the Fast Track Program I, the Government also mandated PLN (pursuant to PresidentialRegulation No. 4/2010 as amended) to implement Fast Track Program II to procure 10,000 MW ofrenewable energy, gas and coal-fired plants. The Fast Track Program II was designed to fulfillincreasing electricity demand in Indonesia beyond completion of the Fast Track Program I, focuson renewable energy sources and invite private sector participation in electricity development.

In early 2015, President Joko Widodo announced plans to add 35,000 MW of new generationcapacity, following which PLN published a plan for the 35,000 MW capacity addition program(pursuant to Ministerial Decree No. 0074.K/21/MEM/2015). IPPs are expected to play a significantrole in the development of generation capacity under this program, while PLN is expected toparticipate in some projects and focus on the development of transmission infrastructure. The35,000 MW plan comprises of projects under the Fast Track Program II as well as PLN’s regulardevelopment program, and is expected to require investment of more than Rp1,100 trillion toimplement. Proposed projects have been identified under the 35,000 MW plan and the relevantmethods of procurement applicable to each project (i.e. via open tender or direct appointment)have also been made public.

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Market Structure and Reform

PLN’s history dates back to Indonesia’s independence in 1945, although it has been through a

variety of structural reorganizations. In 1995, PLN was reorganized into a holding company with

two main generating subsidiaries and a number of specialist subsidiaries. PLN operates under the

control of the Directorate General of Electricity and Energy Utilization.

PLN had a complete monopoly on power generation and distribution until the middle of

1989. Concern that PLN would be unable to meet an estimated increase in future demand of

10.0% per annum resulted in a 1989 decision to allow IPPs to participate in power generation. By

1997, PLN had signed 27 IPP projects with a combined capacity of 10.5 GW, typically with

consortiums that featured well connected Indonesian partners.

The Asian economic crisis in 1997 had a negative impact on PLN. In response to this, the

Government launched several initiatives, including the renegotiation of certain power purchase

agreements with IPPs, intended to improve the economic sustainability of such agreements. In

2003, the Government renegotiated 26 power plant projects with the IPPs. Of those, six schemes

were terminated and five projects were taken over by the Government, PLN and PT Pertamina

(Persero), the parent company of Pertamina.

The Government also issued a white paper in August 1998 which articulated a number of

objectives for electricity sector restructuring. The restructuring policy came into force in

Electricity Law No. 20/2002, which promoted a gradual deregulation of the electricity sector,

including the introduction of competition. However, Indonesia’s Constitutional Court annulled this

law in December 2004, ruling that it was against Indonesia’s constitution to deregulate the

industry. The Constitutional Court reinstated the previous Old Electricity Law No. 15, under which

electricity supply in Indonesia was executed by the state and carried out solely by PLN, relegating

private companies such as Cikarang Listrindo to the complementary role of assisting PLN so long

as such private company’s participation was not contrary to national interests.

On September 23, 2009, New Electricity Law No. 30 came into effect, which revoked and

replaced the provisions of Old Electricity Law No. 15. Under New Electricity Law No. 30,

electricity supply in Indonesia is no longer executed by the state and carried out by PLN as the

holder of the PKUK. Instead, the electricity supply is controlled by the state and conducted by the

central Government and the regional governments through state-owned enterprises, regional-owned

enterprises, private business enterprises, cooperatives and non-governmental enterprises. However,

under New Electricity Law No. 30, state-owned enterprises are granted a “first priority” right to

conduct the electricity supply business for public use. New Electricity Law No. 30 is designed to

allow for greater private sector participation in areas still under the control of the national or

regional governments where the supply of electricity currently does not satisfy the demand for

electricity. Although New Electricity Law No. 30 has come into effect, the related implementation

rules and regulations have not yet been issued until the Government enacted the Government

Regulation No. 14 of 2012 on Electric Power Supply Business Activities on January 25, 2012, as

amended by Government Regulation No. 23 of 2014 issued on April 14, 2014 as the implementing

regulation of New Electricity Law No. 30. The Old Electricity Law No. 15 are still deemed to be

valid as long as they do not contravene the provisions of the New Electricity Law No. 30.

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BUSINESS

Overview

We are engaged in electricity generation and distribution in Indonesia. As the holder of anintegrated IUKU License, we are the sole private supplier of electricity to 2,223 customers locatedin five neighboring industrial estates in the Cikarang area as of June 30, 2016. We also supplyelectricity to PLN, a state-owned electric utility company, under the EPSPA pursuant to whichPLN has committed to purchase a fixed volume of electricity from us each month on a“take-or-pay” basis. Our industrial estates business has in recent years offered consistent revenuegrowth and strong cash flow, while our PLN business provides reliable demand. CikarangListrindo’s shares were listed for trading on the Indonesia Stock Exchange on June 14, 2016 andhad a market capitalization of US$1.9 billion as of August 18, 2016 based on a price of Rp1,575per share.

We own and operate two natural gas-fired combined-cycle power plants with a combinedinstalled generation capacity of 864 MW. Our power plants are located on two sites in theCikarang area of the Bekasi Regency of approximately 16 hectares and 12 hectares, respectively,approximately 45 kilometers east of Jakarta.

Our first gas-fired power plant commenced operations in November 1993 with two GE Frame6B gas turbines providing an installed generation capacity of 60 MW. By the end of 1998, we hadincreased our installed generation capacity to 300 MW through the installation of four additionalGE Frame 6B gas turbines and other ancillary equipment. In 2005, we launched a capacityexpansion plan, which increased installed generation capacity to 646 MW by 2011 through theinstallation of two GE Frame 9E gas turbines and other ancillary equipment. In June 2012, weinstalled a third GE Frame 9E gas turbine with other ancillary equipment, increasing the plant’sinstalled generation capacity to its current level of 755 MW. We are using the third GE Frame 9Egas turbine as a backup unit to be operated as required when any existing gas turbine unitundergoes maintenance or experiences a shutdown. Further, in December 2012, we added three150kV switchyard bays, a 60/80 MV distribution transformer and a switchgear building.

Our second gas-fired power plant was completed in the fourth quarter of 2014 andcommenced operations in July 2015. It utilizes a GE Frame 9E gas turbine and has an installedgeneration capacity of 109 MW. It is located in the MM-2100 industrial estate close to our firstgas-fired power plant, and is intended as a backup plant to be operated as required. It consists ofa GE Frame 9E gas turbine, a 15-bay 150kV switchyard with 12 bays fully equipped, four 60/80MVA distribution transformers and a switchgear building. A double circuit 150kV overheadtransmission line connects our second gas-fired power plant with our first gas-fired power plant inCikarang. The plant has a generator voltage of 15kV and a main transmission voltage of 150kV.The 150kV supply is connected to the 150kV system of our first gas-fired power plant, and theelectricity it generates is synchronized with the operation of our first gas-fired power plant at the150kV level. The 150kV supply also feeds into four distribution transformers, where it is steppeddown to 20kV and is distributed into our pre-existing distribution system to supply to ourcustomers.

To complement our existing gas-fired power plants and in anticipation of continued growth indemand from existing industrial estate customers and the addition of new industrial estatecustomers, we are currently constructing a coal-fired power plant on an approximately 72 hectaresite in Babelan, Bekasi, which is approximately 20 kilometers east of Jakarta. The construction ofthe coal-fired power plant commenced in December 2012, and it is expected to be fullycommissioned in the fourth quarter of 2016. The coal-fired power plant will consist of twoturbines, each with an installed generation capacity of approximately 140 MW, representing a totalinstalled generation capacity of approximately 280 MW. The coal-fired power plant will also havea generator voltage of 15kV and a main transmission voltage of 150kV, which will beinterconnected and also connected to the 150kV system of our existing power plants, and back-up

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supply will also be taken for the start-up of the coal-fired plant. The electricity supply generatedfrom the coal-fired power plant will be synchronized with the operation of the existing powerplants at the 150kV level and its supply will be distributed into our existing distribution system tosupply to our customers.

On October 26, 2015, we and GE Capital entered into a Memorandum of Understanding (the“MoU”) related an equity investment in a joint venture to develop a planned 1,100 to 1,400 MWgas-fired combine cycle electricity generation facility in Indonesia utilizing General Electric’s(“GE”) Frame 9HA gas turbine model. The facility is intended to be built on land currently ownedby us and located in the MM-2100 industrial estate. The MoU sets forth the intended frameworkfor the development of the new gas-fired electricity generation facility to the mutual benefit ofboth parties. This transaction is subject to us and GE Capital reaching definitive agreementssetting forth the details of terms and conditions of the cooperation, including our securing a powerpurchase agreement with PLN for at least an additional 1,100 MW of supply.

We supply power to our industrial estate customers through our 20kV and 380V distributionsystems and to PLN through our 150kV transmission system. In total, we own over 1,329 km of20kV distribution lines and over 3 km of 150kV transmission lines, and we currently haveapproximately 30 km of transmission lines under construction in connection with our newcoal-fired power plant, several sections of which are already complete with the full length of theline scheduled to be completed and energized by September 2016. The power plants and theelectricity transmission and distribution systems are owned by us, and are operated and maintainedby our own trained staff and, as necessary, by third-party service providers. Our third partyservice providers include, among others, General Electric, which provides technical advisory andrepair services for our GE gas turbines, Mitsubishi Electric Corporation, which provides technicaladvisory services for our Mitsubishi steam turbines, and Siemens, which provides technicaladvisory services for our Siemens steam turbines.

We had net sales of US$544.7 million for the year ended December 31, 2014, US$547.9million for the year ended December 31, 2015 and US$274.7 million for the six-month periodended June 30, 2016. Net sales to industrial estate customers accounted for 70.4%, 69.7% and72.9% of our total net sales for the years ended December 31, 2014 and 2015 and the six-monthperiod ended June 30, 2016, respectively. We had EBITDA of US$190.7 million and US$195.4million for the years ended December 31, 2014 and 2015, respectively, and US$99.8 million forthe six-month period ended June 30, 2016. In addition, our total comprehensive income wasUS$81.9 million for the year ended December 31, 2014, US$79.3 million for the year endedDecember 31, 2015 and US$106.3 million for the six-month period ended June 30, 2016.

Our corporate offices are located at 17th Floor, World Trade Centre 1, J1. Jend. SudirmanKav 29-31, Jakarta 12920, Indonesia.

Our Competitive Strengths

We believe that we have the following key competitive strengths:

Uniquely Positioned as the Sole Independent Power Producer Serving the Cikarang IndustrialEstates

We are the sole private supplier of electricity to the tenants located in five neighboringindustrial estates in the Cikarang area in the Bekasi Regency with a right of first refusal toprovide electricity supply before any potential competitors. In our designated business area, wehave achieved a high degree of service penetration, providing electricity to approximately 95% ofthe tenants located in these industrial estates in 2014, 96% in 2015 and 96% for the six monthsended June 30, 2016, supplying approximately 88% of their total electricity consumption in both2014 and 2015 and 89% for the six months ended June 30, 2016.

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The Cikarang industrial estates constitute some of the most significant industrial bases ingreater Jakarta and include the Cikarang Industrial Estate (“Jababeka”), MM-2100 Industrial Town(“MM-2100”), East Jakarta Industrial Park (“EJIP”), Lippo Cikarang (“Lippo”), and BekasiInternational Industrial Estate (“Hyundai”). These industrial estates are self-contained andprivately-operated commercial developments managed by affiliates of multinational corporationssuch as Marubeni Corporation, Hyundai Corporation and Sumitomo Corporation. The tenants inthese estates serve both the domestic Indonesian market as well as the export markets. The estatesoffer a cost effective and efficient means for companies to establish industrial bases in the greaterJakarta area because of its access to skilled labor, critical infrastructure and full range of othervalue added services and supporting industries.

In addition, our gas-fired power plants have been declared a VNO, allowing us specialgovernment assistance in the form of police and armed forces protection in the event of securitythreats as well as preferential allocation of natural gas supply.

Strong and Diversified Industrial Estate Customer Base Coupled with an Attractive ElectricitySupply Contract with PLN

We serve a diversified customer base of 2,223 local and multinational corporations across abroad range of industries and geographical markets as of June 30, 2016. For the year endedDecember 31, 2015, over 55.4% of our total kVA capacity was provided to industrial estatecustomers with no single customer representing more than 1.5% and no single industryrepresenting more than 31.9%. For the six-month period ended June 30, 2016, over 56.7% of ourtotal kVA capacity was provided to industrial estate customers with no single customerrepresenting more than 1.5% and no single industry representing more than 31.6%.The majority ofour customers consists of companies engaged in light and medium industry sectors, such asautomobiles, electronics, plastics, food and chemicals, which are generally less sensitive tovariations in their electricity cost. As a result of our reliable supply of electricity over the years,many of our customers have been our offtakers on a long-term basis. As of June 30, 2016, 65.2%of our customers have been with us for more than ten years, 14.3% for five to ten years, and20.5% for less than five years. Our customers have exhibited low churn rates with low proportionsof bad debts, where bad debt expense against net revenue from industrial estate customers rates(calculated by dividing the bad debt expense for the period by the net revenue from industrialestate customers for the period) was 0.24%, 0.12% and 0.27% for the years ended December 31,2013, 2014 and 2015, respectively, and 0.07% for the six-month period ended June 30, 2016. Wehave also consistently added new customers, adding 156, 137 and 88 new customers for the yearsended December 31, 2013, 2014 and 2015, respectively, and 38 for the six-month period endedJune 30, 2016. We have, for more than 20 years, been the preferred primary power supplier to newcustomers in our area, whilst PLN has been supplying electricity to a limited number of legacycustomers. We believe that the attractiveness of the Cikarang industrial estates due to theirproximity to Jakarta and strong transportation links, together with the diverse mix of tenantslocated in the industrial estates, provides us with a balanced sector exposure, a widely distributedcustomer base and balanced and steady growth prospects.

In addition to our industrial estates customer base, our EPSPA with PLN currently entitles usto sell to PLN a monthly volume of electricity based on PLN’s annual capacity commitment of300 MW, based on a commitment by PLN to purchase 150 MW annually until June 1, 2031 and acommitment to purchase an additional 150 MW until January 26, 2019. For PLN, these contractshelp alleviate ongoing capacity shortages in the area by leveraging a reliable electricity sourceclose to Jakarta and thereby securing a cost-efficient supply of electricity. From our perspective,this take-or-pay arrangement provides us with a reliable source of demand and the flexibility toimprove our blended heat rates and operating efficiency through enhanced capacity utilization. Forexample, because our contractual supply obligations to PLN are determined on an annual basis, wecan increase our dispatch to PLN in periods of low energy demand from our industrial estatecustomers, allowing us to optimize the utilization of our facilities. As a result, we believe that thisarrangement will continue to be mutually beneficial beyond 2019.

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Longest Operating Private Supplier of Electricity in Indonesia with Strong OperationalCapabilities and a Proven Greenfield Development, Construction, Operation, and MaintenanceTrack Record

We are the longest operating private supplier of electricity in Indonesia, with a proven trackrecord of successful completion of design, engineering, procurement, construction, installation,testing, commissioning, operation and maintenance and repowering of our gas-fired combinedcycle power stations. We have steadily increased our installed generation capacity from 60 MWwhen our operations began in 1993 to 864 MW as of June 30, 2016. In addition, we are currentlyconstructing a coal-fired power plant, which will increase our total capacity to 1,144MW andoperate as a base load facility and enable us to utilize coal as a cheaper fuel source compared tonatural gas. The construction of the coal-fired power plant is on track and on budget with acompletion rate of 82.4% as of June 30, 2016. We have not outsourced the construction of ourplants to turnkey providers and have adopted instead a multi contract approach, coordinating anddirectly overseeing all the different contractors involved in the construction of our plants. This hasenabled us to have a deeper understanding and control over our operations and accumulatesignificant expertise over time. We maintain a long-term contract with GE for the maintenance ofour gas turbines and other equipment parts. Our strong track record in greenfield development andexpansion can be attributed to our experience in commissioning and operating advanced equipmentand technologies in our power plants, supported by the expertise of our project team members andour strong relationships with world class equipment suppliers such as GE, Siemens, Schneider,Mitsubishi, ABB Sakti Industri and Doosan.

Throughout the years, we have continually sought to improve the efficiency of our powerplants. In 2011, we repowered by way of converting previously simple-cycle turbines intocombined-cycle turbines. This improvement resulted in a decrease in net heat rate of 17.6%between 2010 and the six months ended June 30, 2016. In addition, our network distribution lossesimproved from 0.71% in 2010 to 0.62% in 2015 and 0.58% for the six months ended June 30,2016, while our net capacity factor improved from 66.6% in 2010 to 86.4% in 2015 and 88.1% forthe six months ended June 30, 2016. Between 2010 and the six months ended June 30, 2016, ourpower plant achieved an average availability factor of 95.4%, benefiting in part from themodularization of our generating units, which enabled us to operate our first gas-fired power plantwithout interruption even during a malfunction in an individual unit of the power plant.

Our strong efficiency track record is further complemented by a culture of commitment tohealth, safety, and environmental excellence as well as the status of our plants as VNOs. SinceOctober 2000, our facilities have been certified to ISO standards and last year our projectsreceived the OHSAS 18001 certification, demonstrating our long-standing commitment to qualitycontrol and minimizing our impact on the environment and climate.

Robust Cash Flows to Support Operations and to Service and Repay Debt

We have generated steady cash flows to support our capital expenditure and working capitalrequirements while at the same time servicing and repaying debt on a timely basis. Our EBITDAwas US$155.9 million, US$190.7 million and US$195.4 million for the years ended December 31,2013, 2014 and 2015, respectively and US$99.8 million for the six months ended June 30, 2016.We believe our steady cash flow generation capability is attributable to a number of sustainableand long-term factors, including stable and diversified customer demand, a robust tariff structure,reliable and long-term fuel supply, world class generation facilities and an experienced and provenmanagement team.

We have an attractive tariff structure with our industrial estate customers that allows us topass through foreign exchange and fuel costs. In particular, our tariffs for both industrial estatecustomers and PLN include automatic adjustment provisions for currency fluctuations.Accordingly, our tariffs charged to industrial estate customers and PLN remain substantially

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constant in terms of U.S. Dollars and are unaffected by the fluctuations in the Rupiah to U.S.Dollar exchange rate. Our tariffs for both industrial estate customers and PLN also includeautomatic adjustment provisions for fuel price fluctuations, allowing us to pass on fuel priceincreases to our customers.

We also have a reliable and diversified supply of natural gas from our principal suppliers,which include Pertamina and PGN. Our fuel supply contracts are long-term agreements, with anaverage duration of 16 years, and provide us with the flexibility to vary the procurement volumeto match the volume of gas needed to meet the fluctuations in electricity demand from ourcustomers. Furthermore, in the unlikely event that natural gas is unavailable, our facilities arecapable of switching to distillate fuel as a secondary source, mitigating fuel supply risks. In thefuture, we expect our new coal-fired power plant to benefit from a similarly secure fuel supplyenvironment. Coal is readily available in the market in the short- to medium-term and we do notforesee any issues in securing reliable medium-term coal at competitive prices. For instance, wehave recently secured a 5-year coal sourcing agreement from PT Antang Gunung Meratus, whichwill commence once our coal-fired power plant comes online. Further, we also benefit from addedsecurity on our facilities due to our existing plants’ VNO status.

As of June 30, 2016, over 56.7% of our total kVA capacity was provided to industrial estatecustomers was to multinational corporations operating across a broad range of industries andgeographical markets. We believe that our customer base should reduce the exposure of our cashflows to industry, regional or country-specific risks. In addition, tariffs for both industrial estatecustomers and PLN include automatic adjustment provisions in the event of currency fluctuations.Accordingly, our earnings from tariffs charged to industrial estate customers and PLN remainsubstantially constant in terms of U.S. Dollars regardless of the Rupiah-U.S. Dollar exchange rate.Our tariffs for both industrial estate customers and PLN also include automatic adjustmentprovisions to reflect increases in natural gas prices, allowing such increases in natural gas costs tobe passed on to customers.

Well-Positioned to Capitalize on Strong Growth in Electricity Demand from the IndustrialEstates and Elsewhere in Indonesia

We believe that electricity consumption in the Cikarang industrial estates we serve willcontinue to increase, as existing customers expand their operations and incoming tenants purchaseand develop available-for-sale plots and the industrial estates expand. We believe we arewell-positioned to capitalize on future growth in the Cikarang industrial estates since only 1,825ha of the 3,318 ha available for industrial development in the Cikarang estates area have access toelectricity as of June 30, 2016. As part of our expansion strategy, we have already commissionedour second gas-fired power plant in the MM-2100 industrial estate and we are currentlyconstructing a coal-fired power plant with a total capacity of 280 MW at our Babelan site inBekasi.

Electricity demand from our industrial estate customers increased from 6,196 MWh per dayin 2010 to 7,514 MWh per day in 2015 and 7,951 MWh per day for the six months ended June 30,2016. Our supply of electricity to industrial estate customers has increased from an average of 496kVA per hectare in 2010 to 540 kVA per hectare in 2015 and 546 kVA per hectare for the sixmonths ended June 30, 2016. Our net capacity factor has also increased from 66.6% in 2010 to86.4% in 2015 and to 88.1% for the six months ended June 30, 2016, driven by increased demandfor electricity from our customers. We believe we are well positioned to continue to benefit fromthe strong demand from our industrial estate customers as we are the sole private enterprise with alicense to supply electricity to tenants located in five neighboring industrial estates in theCikarang area, which is only 45 kilometers from Jakarta. Our current license is valid until 2036.

We believe that the power generation industry in Indonesia has significant growth potential,which will be driven not only by economic expansion, but also the current low per capitaelectricity consumption and electrification rate in Indonesia. We believe that the strategic location

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of our power plants near the major demand center of Jakarta with strong transportation links andour access to significant unused land in our sites available for capacity expansion will allow us tobenefit from additional growth opportunities and continue to position us as an attractive electricityprovider to PLN and other customers.

Strong Management Team with Extensive Experience and a Proven Track Record ofManaging the Longest Operating Private Supplier of Electricity in Indonesia

Members of our management team have extensive experience in the power generation sectorand a proven track record of successfully establishing, operating, maintaining and expandingpower plants. Our senior management team cumulatively has over 240 years of related experiencein the power industry and over 121 years of service with us. In addition, members of ourmanagement team possess complementary skills and have extensive experience and knowledge ofthe local power industry. In particular, our project team members, who managed the constructionof our second gas-fired power plant and are managing the construction of our coal-fired powerplant, have successfully built our facility from a greenfield project in 1993 into our currentfacility with an installed generation capacity of 864 MW.

Business Strategy

The main elements of our business strategy include the following:

Continue to Provide Reliable Electrical Supply to Customers in our Business Area

We will continue to focus on providing reliable electricity supply to our industrial estatecustomers. We currently offer our industrial estate customers highly stable and reliable electricitysupply with a significant back-up generation capacity. Our back-up electricity distribution networkfor our industrial estate customers also ensures maximum reliability of delivery. In our recentoperating history, we have experienced only one involuntary outage, the shutdown in 2009 of oneof our gas turbines that lasted seven and a half months, and have not experienced any involuntaryoutages since then. From 2010 through the six months ended June 30, 2016, the availability factorfor our gas turbines averaged 95.4%. We intend to continue to maintain and increase our reservecapacity by investing in new technologies and generation facilities in order to sustain and improveour electricity supply reliability.

Further, the construction of our new coal-fired power plant will allow us to reduce ourcurrent dependence on Pertamina and PGN for gas supply. By diversifying our fuel source, wewill be able to reduce our exposure to shortages of any particular fuel source, thereby improvingthe reliability of our electricity supply. The coal-fired power plant also has the potential tosignificantly reduce our cost of generation and allow us to benefit from Indonesia’s abundant andreliable thermal coal supply. Because the coal-fired power plant is expected to run as a base loadfacility, we will be able to operate the gas-fired power plants as intermediate or peaking powerfacilities, which is expected to result in an increase in the thermal efficiency of our facilities. Thiswill improve our operating profile as well as help to minimize our impact on the environment andclimate.

We believe that we have achieved high customer satisfaction due to the reliability of ouroperations and dispatch, as evidenced by our high service penetration and low incidence ofcustomer loss. We believe that our focus on providing a reliable supply of electricity will allow usto attract and retain new and existing industrial estate customers.

Improve Operating Margins by Thermal Efficiency, Fuel Diversification and Economies ofScale

We expect natural gas costs, which are the single largest component of our cost base, todecrease as a percentage of sales over time as a result of increased average plant loading,improved thermal efficiency and our shift to generating a significant portion of our electricity withcoal. We have continuously upgraded our facilities in order to enhance our operating efficiency,

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improving our average monthly blended heat rate from 9,989 Btu/kWh for the year ended

December 31, 2010 to 8,274 Btu/kWh for the year ended December 31, 2015 and 8,230 Btu/kWh

for the six months ended June 30, 2016. After the commissioning of our coal-fired power plant,

we expect to further enhance our operating efficiency by transitioning our higher cost gas-fired

units into peaking power plants while using our coal-fired power plant as the base load facility.

We expect this transition to substantially lower overall electricity generation unit cost as we

utilize coal as a cheaper fuel source alternative to natural gas. In addition, as we continue to

increase our installed generation capacity, we expect to continue to benefit from greater economies

of scale associated with lower average operating expenses from the sharing of spare parts,

maintenance and labor among our power plants.

Pursue Capacity Expansion to Meet Increasing Demand from Industrial Estate Customers andPLN

Our second gas-fired power plant in the MM-2100 industrial estate was commissioned in July

2015, increasing our installed generation capacity to 864 MW. The commissioning and operation

of the two units of our new coal-fired power plant currently under construction are scheduled to

be completed in the fourth quarter of 2016, which will further increase our installed generation

capacity to 1,144 MW to meet the rising peak electricity demand from the industrial estates. We

believe that demand from industrial estate customers will grow as new and existing customers

expand their operations. We also expect additional demand for electricity as the industrial estates

are further developed and more land in the industrial estates is sold to both new and existing

tenants.

Moreover, we believe that we are one of the few private electricity suppliers that can

efficiently satisfy PLN’s power needs in view of our proximity to the major demand center of

Jakarta and the availability of substantial parcels of unused land for expansion. Transmission of

power from PLN’s power generation facilities in eastern Java to the Jakarta area is constrained by

the increasingly congested Java-Bali power grid, which our facilities are able to bypass due to our

location. We believe that PLN will continue to increase its demand for electricity from us as we

expect that PLN will continue to experience shortfalls in its electricity supply for the foreseeable

future, which will support further increases in our installed generation capacity. As an integrated

IUKU license holder, we are able to engage in bilateral negotiations with PLN without going

through a competitive tender process.

The Indonesian power generation industry is growing and the Government plans to increase

generation capacity by 35 GW over the next five years. To meet increasing demand for power in

Indonesia, we plan to selectively pursue additional investments in new or existing power

generation assets to leverage our unique expertise and industry relationships, in particular our

more than 20-year relationship with GE. For example, on October 26, 2015, we and GE Capital

entered into an MoU related to the development of planned 1,100 to 1,400 MW gas-fired combine

cycle electricity generation facility in Indonesia utilizing GE’s Frame 9HA gas turbine model. The

facility is intended to be built on land currently owned by us and located in the MM-2100

industrial estate. The MoU sets forth the intended framework for the development of the new

gas-fired electricity generation facility to the mutual benefit of both parties, and we believe that

this arrangement will help to further strengthen our relationship with GE. Furthermore, we believe

we are well-positioned to win bids for potential IPP projects that PLN may put out for tender due

to our strong operational track record with our existing power projects, our highly capable and

experienced management team and our strong existing relationship with PLN.

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Industrial Estate Customers

Overview

In the early 1990s, the Ministry of Industry of Indonesia began encouraging the consolidationof the country’s industrial activities into dedicated industrial estates. As PLN was unable to supplyenough power to support these developments itself, the Government decided to commission IPPsto participate in the provision of electricity. In 1991, we successfully applied for our IUKUlicense covering five of the seven industrial estates in the Cikarang area, namely JababekaIndustrial Estate (“Jababeka”), East Jakarta Industrial Park (“EJIP”), Megalopolis Manunggal-2100Industrial Estate (“MM-2100”), Gunung Ceremai Inti (Lippo Cikarang) (“Lippo”) and Hyundai IntiDevelopment Industrial Estate (“Hyundai”). Our IUKU license has been amended over time in linewith increases in the generation capacity of our power plants. The latest amendment to our IUKUlicense was issued on October 18, 2012 by the Regent of Bekasi to reflect the ISO base-ratedgeneration capacity of 854 MW. This amended license is valid for thirty years from the date ofissuance, and may be extended by submitting a written application within 60 days prior to theexpiration date. Further, on January 11, 2016 we obtained an IUPTL license for our secondgas-fired power plant for a capacity of 126 MW, which is valid for 30 years and may also beextended. See “Regulation of the Indonesian Power Generation Industry —Licensing RegimeCurrently Applicable to Us” and “Risk Factors—Risks Relating to Government Regulation—Weoperate in a highly regulated environment, and our business is highly dependent on the IUKUlicense.”

Since 1993, we have been the sole private supplier of electricity to tenants within ourbusiness area. PLN has not directly entered into agreements with new customers in our businessarea. However, New Electricity Law No. 30 is designed to allow for greater private sectorparticipation in the power generation industry and is therefore expected to increase competition inthis sector. Although New Electricity Law No. 30 and MEMR Regulation 28/2012 issued by theMinister of Energy and Mineral Resources reflect the general principle that only one businessentity will have permission, within a single business area, to conduct an integrated powergeneration business for public use, MEMR Regulation 28/2012 also provides that one businessarea may be served by more than one electricity license holder if the existing license holder isunable to supply electricity or distribution that meets required standards of reliability and qualityor surrenders all or part of its business area to the Government. Accordingly, there can be no

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assurance that we will not in the future face competition in our business area, including from PLNand other private sector participants. See “—Competition” and “Risk Factors—Risks Relating toOur Business—Customers in the business area served by us may be able to receive electricityfrom other sources due to recent regulatory changes or increased competition.”

The Cikarang area is part of Bekasi Regency, West Java, and is located approximately 45kilometers east of Jakarta. Cikarang has developed into an important base for industrialproduction, as it is situated in close proximity to major transportation hubs in the region. TheInternational Soekarno-Hatta Airport, Bekasi Railway Station and Tanjung Priok, the largest portin Indonesia, are all within an approximately 65 kilometers radius of Cikarang.

The table below sets forth certain information regarding our industrial estate customers as ofJune 30, 2016:

Industrial Estate

Total Area

Ha

Total

Energized

kVA(3)

Total

Tenants

Tenants

Supplied by

us

kVA

Supplied by

us

% of

Tenants

Supplied

% of kVA

Supplied

Jababeka................... 1,040(1) 343,004 1,291 1,266 300,844 98.1% 87.7%

MM-2100 ................. 1,460 443,384 305 272 397,254 89.2% 89.6%

Ejip .......................... 320 137,131 93 84 131,311 90.3% 95.8%

Lippo ....................... 1,695(2) 145,497 558 545 134,926 97.7% 92.7%

Hyundai.................... 225 55,741 79 56 32,321 70.9% 58.0%

Total ........................ 4,740 1,124,757 2,326 2,223 996,656 95.6% 88.6%

Notes

(1) We have the right to provide electricity to an area of 1,340 hectares in the Jababeka estate, 300 hectares of which is

comprised of small rural homes not expected to be developed in the near future.

(2) We have the right to provide electricity to an area of 1,695 hectares in the Lippo estate, but as of June 30, 2016,

only 1,375 hectares has been developed by the estate.

(3) “Energized kVA” represents the amount of capacity each customer has purchased for use under offtake agreements.

The industrial estates of Cikarang cover a total of 4,740 hectares, of which 1,493 hectares ofland available for industrial development has yet to be electrified. They are home to more than2,300 local and multinational corporations, including companies from Australia, France, Germany,Japan, Korea, the Netherlands, Taiwan, the United Kingdom and the United States. The majorityof companies in the estates are engaged in light industries such as automobiles, electronics,plastics, food and chemicals. For over 20 years, we have been the sole private electricity suppliersupplying electricity to the five industrial estates of Cikarang, serving over 95% of the tenantslocated in these industrial estates in 2013, 95% in 2014, 96% in 2015 and 96% for the six monthsended June 30, 2016. Customer turnover has been low, except for limited instances of plantclosures or consolidation. Customer payments are generally made on-time, and an average of morethan 98.1%, 97.6% and 96.9% of payments were paid within 12 days of their due date for theyears ended December 31, 2013, 2014 and 2015, respectively, and 95.5% of payments were paidwithin 12 days of their due date for the six months ended June 30, 2016.

Each of these industrial estates is a self-contained, privately-operated commercialdevelopment that provides factory land to private corporations. In addition to selling land for theconstruction of factories, these estates offer a cost-effective and efficient way to own and operatefactories in Indonesia as they provide land ownership, custom built plant facilities, complete andreliable infrastructure and a full range of other value-added services, including police and firestations, schools, hospitals, residential housing and private security. Industrial estates can alsooffer assistance in processing applications for various licenses and settling labor disputes, ifnecessary.

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The table below sets forth certain information regarding the electricity supply provided by usto our industrial estate customers for the periods indicated:

For the year ended December 31,

For the six months

ended June 30,

Electricity Supply 2010 2011 2012 2013 2014 2015 2015 2016

Energized Capacity(1) (kVA’000) 635 726 786 871 936 978 941 997

Electricity Supply (GWh)........... 2,252 2,500 2,690 2,730 2,837 2,774 1,357 1,447

Customer Base ........................... 1,625 1,711 1,804 1,960 2,097 2,185 2,144 2,223

Total Area (Ha) ........................ 3,309 4,061 4,061 4,684 4,684 4,740 4,684 4,740

Note

(1) “Energized Capacity” represents the amount of capacity each customer has purchased for use under offtake

agreements.

The table below sets forth certain information regarding the peak demand of our industrialestate customers and our generation capacity for the periods indicated:

For the year ended December 31,

For the six months

ended June 30,

Peak Electricity Demand &

Capacity 2010 2011 2012 2013 2014 2015 2015 2016

Peak Electricity Demand

(MWh/day) ............................ 6,780 7,790 7,854 8,148 8,438 8,256 7,920 8,364

Installed Generation Capacity

(MW) .................................... 518 646 755 755 755 864 755 864

Customer Mix and Concentration

The industrial estates that we serve have attracted a diverse array of domestic and foreignexport-oriented businesses engaged in light and heavy manufacturing across a broad range ofindustries with customers primarily outside of Indonesia. The tenants of these industrial estatesinclude blue-chip and multi-national corporations such as PT Megalopolis Manunggal IndustrialDevelopment, PT Menara Terus Makmur, PT Shinto Kogyo Indonesia, PT Sankei GohsyuIndustries, PT Mattel Indonesia, PT Aisin Indonesia, PT Mitsubishi Electric Automotive, PT JotunIndonesia, PT Kao Indonesia, PT Kansai Paint Indonesia, PT Keihin Indonesia, PT Koyorad JayaIndonesia and PT VS Technology Indonesia, all of whom are also our customers. See“—Competitive Strengths.”

The industrial estates’ diverse mix of tenants provides us with balanced sector exposure, awidely distributed customer base and balanced, steady growth prospects. Operationally and interms of capacity planning, industrial estate customers represent the core of our business,accounting for 71.3% of our net sales in the year ended December 31, 2013, 70.4% of our netsales in the year ended December 31, 2014, 69.7% of our net sales for the year ended December31, 2015 and 72.9% of our net sales for the six months ended June 30, 2016. As of June 30, 2016,aggregate peak load demand from industrial estate customers amounted to approximately 490 MW,representing 89% of the total kVA supplied by us.

As of June 30, 2016, Japanese corporations or their affiliates represented the single largestgrouping of customers, accounting for 53% of our current energized kVA attributable to ourindustrial estate business, followed by domestic Indonesian companies (27%) and Korean

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companies or their affiliates (7%). Firms from Europe, ASEAN countries, the U.S. and Taiwanrepresent the balance of our customer base at 4%, 5%, 1% and 2%, respectively. As of June 30,2016, the automobile industry represented the single largest industry served by us at 34% of ourtotal kWh sold to our industrial estate customers, followed by electronics, plastics, chemicals andfood at 20%, 15%, 5% and 6%, respectively. Our top ten industrial estate customers accounted foronly 15.1% of our total net industrial estate sales for the year ended December 31, 2013, 14.4% ofour total net industrial estate sales for the year ended December 31, 2014, 13.9% of total net salesof industrial estates for the year ended December 31, 2015, and 13.4% for the six months endedJune 30, 2016, and our top 25 customers accounted for 29.1%of total net sales for the year endedDecember 31, 2013, 28.5% for the year ended December 31, 2014 and 27.7% for the year endedDecember 31, 2015, and 26.6% for the six months ended June 30, 2016. As of June 30, 2016, ourtop ten industrial estate customers accounted for only 8.3% of supplied kVA to the industrialestates, and our top 25 customers accounted for 19.7% of supplied kVA to the industrial estates.

Tariff Structure

Under the New Electricity Law No. 30 and Regulation 14/2012, our industrial estatecustomers are currently subject to a tariff and electricity sale price regime agreed upon by us,PLN, the relevant Government authorities and the estate operators, and subsequently adopted asthe central Government policy. These include both non-utilization-based and utilization-basedcharges. Pursuant to New Electricity Law No. 30 and Regulation 14/2012, non-utilization-basedcharges consist of a connection charge, a refundable deposit and a late penalty for paymentsbeyond due date, while utilization-based charges consist of a capacity charge, a usage charge andan excess charge. Below is a brief description of each of these tariff components.

• The connection charge is a one-time charge incurred whenever a new connection isestablished, determined based on the voltage level of the customer’s connection.

• The refundable deposit is an amount determined through a formula which estimates twomonths’ capacity charge and two months’ usage charge, which is refundable upontermination of the power purchase agreement at the customer’s request.

• The capacity charge is a fixed monthly fee based on the number of kVA specified byeach customer in its power purchase agreement with us.

• The usage charge is a variable monthly fee computed based on the number of kWh ofelectricity delivered to the customer.

• Excess charge is a variable fee computed based on the number of kVARh of electricitydelivered to the customer exceeding its kVARh, derived from the kWh used based on apower factor of 0.85.

We may, at our discretion, increase our capacity charge from Rp9,000/kVA/month to up toRp15,000/kVA/month. The Rp6,000 difference represents the difference between our currentcapacity charge and the Government-mandated ceiling rate. To help promote foreign directinvestment in Cikarang and support the growth of our industrial estate customers, we havehistorically elected not to implement rate hikes, even though we are entitled to do so.

Our pricing formulae offer us protection against any volatility with respect to Indonesia’scurrency. Our usage charge and capacity charge remain constant in U.S. Dollar terms, regardlessof the actual foreign exchange rate at any given time. In addition, the computation of usagecharges is such that tariffs adjust automatically to reflect cost increases due to increases in naturalgas prices. Therefore, increases in natural gas costs are fully passed on to customers.

We retain a security deposit amounting to two months of electricity charges from ourindustrial estate customers and also impose a 2% monthly late penalty for payments beyond thedue date, which is 18 days from the date of billing. If we do not receive payment by the due date,we issue a late payment notice requesting payment of the due amount plus the late penalty charge

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within seven days of the late payment notice. If we do not receive payment by this extended due

date, we issue a second late payment notice requesting payment within seven days of this second

notice. If we do not receive payment by the further extended due date, we will issue a third late

payment notice stating that connection will be terminated if payment is not made within seven

days of this third notice.

The table below sets forth the average tariff rates applicable to our industrial estate

customers for the periods indicated:

For the year ended December 31,

For the six months ended

June 30,

2012 2013 2014 2015 2015 2016

Tariff (US$ per kWh)....... $0.1110 $0.1310 $0.1352 $0.1376 $ 0.1374 $0.1384

Under New Electricity Law No. 30 and Regulation 14/2012, the central Government no

longer has the exclusive authority to set electricity tariffs. Rather, each level of government, with

the approval of the national House of Representatives (in the case of the central Government) or

Regional House of Representatives (in the case of a regional government), has the authority to set

electricity tariffs for consumers within its sphere of authority. Under New Electricity Law No. 30

and Regulation 14/2012, in determining the electricity tariffs, the Minister of Energy and Mineral

Resources, governor or regent/mayor shall take into account, among other things, the main cost of

electricity supply, business scale and scale of interconnection system. The electricity license

holder shall submit a request to the Minister of Energy and Mineral Resources, the governor or

the regent/mayor, as applicable, to determine its electricity tariffs. Further guidelines for obtaining

approval for tariffs for electricity sales to public consumers will be set out in ministerial

regulations, governor regulations or regent/mayor decree. See “Risk Factors—Risks Relating to

Government Regulation—We operate under a Government-regulated tariff regime and are therefore

unable to unilaterally adjust the pricing of electricity that we sell, and are subject to uncertainty

resulting from the change in tariff policy under New Electricity Law No. 30 and Regulation

14/2012.”

PLN Business

Overview

PLN is a state-owned electric utility company that, as of December 31, 2015, had

approximately 40,295.2 MW of installed generation capacity in Indonesia, in addition to owning

and controlling all public electricity infrastructure in Indonesia, including construction of power

plants, power generation, transmission, distribution and retail sales of electricity. PLN also

purchases most of the power generated by IPPs to be sold elsewhere on the Java-Bali power grid

(exclusive of self-generation and on-site generation). We currently have a long-term contract for

the sale of electricity to PLN under which PLN annual capacity commitment is 300 MW until

January 26, 2019 and 150 MW thereafter until June 1, 2031. Since 1993, the Government has

licensed IPPs to generate electricity for use in Indonesia. The licenses allow the IPPs producing

electricity for use in Indonesia to generate a stated amount of electricity for sale to PLN. Prior to

our commencement of operations in 1993, industrial estate tenants in the Cikarang area were

initially allocated portions of the available electricity supply generated by PLN. The industrial

estate tenants who received initial allocations of electricity supply from PLN prior to 1993 may

continue purchasing electricity from PLN, and many of these early industrial estate tenants, in the

interest of supply diversification, continue to maintain active connections to the Java-Bali power

grid with PLN.

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Electricity Power Sale and Purchase Agreement between Us and PLN

PLN and we entered into the EPSPA on a “take-or-pay” basis for a term of 20 years effectiveuntil June 1, 2031. Upon expiration of the term of the agreement, the EPSPA may be extended bymutual agreement of both parties.

Under the current EPSPA, we are obligated to supply and PLN is required to purchase amonthly volume of electricity based on an annual capacity commitment of 300 MW until January26, 2019 and 150 MW thereafter until June 1, 2031. The agreement establishes a two-part tariffsystem that takes into account actual capacity availability and energy dispatched. Depending onthe number of days in a given month, the monthly energy dispatch required varies between 72,576and 80,352 MWh during the period from January 26, 1996 until June 1, 2011, between 145,152and 160,704 MWh during the period from June 1, 2011 until January 26, 2016 and between 15,552and 80,352 MWh during the period from January 26, 2016 until June 1, 2031. PLN has the rightto reduce or refuse to accept the supply of capacity in cases where PLN’s facilities are not readyto receive electricity due to emergencies or maintenance. Either party may seek reformulation ofthe tariff in the event of a material change in law or regulation.

The agreement stipulates that deliveries and receipts of electricity be handled by a teamconsisting of both PLN’s and our staff. This is to ensure that any necessary maintenance andrepair work that is required at PLN’s and our facilities are communicated to both sides forplanning purposes. To gauge the flow of electricity and therefore the actual amount of electricityused, an electronic meter is installed, owned, operated and maintained by PLN. Readings of themeter are only conducted in the presence of representatives from both PLN and us.

PLN is required to make payments to us within 30 days after receiving an invoice. Interestwill be assessed on any late payment based on the six-month U.S. Dollar deposit rate at BankNegara Indonesia. In 2006, we experienced delays in collecting accounts receivables from PLNunder the EPSPA, which we subsequently collected in full. See “Risk Factors—Risks Relating toOur Business—We are subject to risks associated with reliance on PLN as a significant customer.”PLN has since been a reliable paying customer.

The EPSPA may be terminated upon written approval of the parties or by the non-defaultingparty upon any event of default such as a failure to perform any term of the agreement which isnot rectified within the specified cure period.

Tariff Structure

Tariffs for sales to PLN feature four components: A, B, C and D. A and B are capacitycharges to cover depreciation and debt service expenses and operating and maintenance costs. Cand D are energy charges to cover the cost of electricity generation and transmission. Eachcomponent includes a minimum billable volume of electricity equivalent to 72.0% of an annuallevel.

The four components are calculated as follows:

• Component A is calculated by multiplying a base price rate by the monthly kWh usage(“Monthly Billable Dispatch”) and adjusting for exchange rate fluctuations. TheMonthly Billable Dispatch has a minimum level, and incremental discounts are givenfor usage exceeding certain levels above the monthly minimum level.

• Component B is calculated by multiplying a base price rate by the Monthly BillableDispatch and adjusting for exchange rate fluctuations and inflation. The MonthlyBillable Dispatch has a minimum level, and incremental discounts are given for usageexceeding certain levels above the monthly minimum level.

• Component C is based on the cost of natural gas required by us to generate energy, thecost associated with transporting it and a fixed heat rate.

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• Component D is calculated by multiplying the Monthly Billable Dispatch by a baseprice and adjusting for exchange rate fluctuations and inflation.

In the event of our failure to provide the annual minimum kWh in accordance with theEPSPA, a penalty is applied at 10.0% of the rate for Components A and B multiplied by theshortfall in kWh. Such penalty was imposed in 2006, when Pertamina failed to supply sufficientamount of natural gas for us to deliver the required amount of electricity to PLN, and in 2011,2012 and 2013, when shutdowns due to maintenance of our GTG units in the fourth quarter ofthose years left us with insufficient time to make up for the shortfall in the electricity we coulddispatch to PLN. See “Risk Factors—Risks Relating to Our Business—Our gas-fired power plantsrely primarily on two suppliers of natural gas and the failure of our suppliers to supply sufficientamounts of natural gas required for us to deliver contracted-for quantities of electricity to ourcustomers may have an adverse effect on our business, financial condition and results ofoperations.”

As with our industrial estate pricing, tariffs for sales to PLN are also hedged through thetariff structures described above against currency fluctuations and natural gas cost increases.

The table below sets forth the average tariff rates applicable to PLN for the periodsindicated:

For the year ended December 31,

For the six months ended

June 30,

2012 2013 2014 2015 2015 2016

Tariff (US$ per kWh)....... $0.0727 $0.0813 $0.0824 $0.0831 $0.0812 $0.0788

Our Gas-Fired Power Plants

Overview

Our gas-fired power plants are located in the Cikarang area of Bekasi Regency, West Java,which is approximately 45 kilometers east of Jakarta in the heart of our five industrial estates.The location offers several strategic advantages, including close proximity to industrial estatecustomers, reliable cooling water supply from a nearby canal and ready access to major roadsconnecting the industrial region in the Bekasi Regency to Jakarta and to other major cities in WestJava.

Our first gas-fired power plant, occupying an approximately 16 hectare site is a gas-firedcombined-cycle power plant with an installed generation capacity of 755 MW. It commencedoperations in November 1993 with two GE Frame 6B gas turbines operating in simple-cycle andproviding an installed generation capacity of 60 MW. Since then, its installed generation capacityhas increased through periodic expansions. By the end of 1998, the installed generation capacityhad increased to 300 MW through the operation of two combined-cycle trains, each consisting ofthree GE Frame 6B gas turbines, three dual-pressure Stork Ketels HRSGs and a single MitsubishiHeavy Industries, or MHI, condensing-type steam turbine. In 2005 we launched a capacityexpansion plan, which was completed in March 2011, increasing installed generation capacity to646 MW. The first stage of the capacity expansion plan was completed in July 2006 with theinstallation of the first GE Frame 9E gas turbine, which increased installed generation capacity to409 MW. The second stage of the capacity expansion plan was completed in December 2009 withthe installation of the second GE Frame 9E gas turbine, which increased installed generationcapacity to 518 MW. The third and final stage of the capacity expansion plan was completed inMarch 2011 with the installation of two Alstom dual-pressure HRSGs and a Siemenscondensing-type steam turbine, which increased installed generation capacity to 646 MW. In June2012, we installed a third GE Frame 9E gas turbine with other separately purchased ancillaryequipment, increasing the plant’s installed generation capacity to its current level of 755 MW. Weare using the third GE Frame 9E gas turbine as a backup unit to be operated as required when any

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existing gas turbine unit undergoes maintenance or experiences a shutdown. Further, in December2012, we added three 150kV switchyard bays, a 60/80 MVA distribution transformer and aswitchgear building. The natural gas for our gas-fired power plants is supplied by two suppliers,Pertamina and PGN, which supplied 51.01% and 46.45% of our total gas consumption,respectively, during the year ended December 31, 2015 and 56.7% and 43.2% of our total gasconsumption, respectively, during the six months ended June 30, 2016. A third supplier, PTRabana Gasindo Makmur (“Rabana”), with which we had a long-term contract for natural gassupply that expired in December 2015, provided 2.54% of our total gas consumption during theyear ended December 31, 2015. We may still source natural gas from Rabana on a non-contractbasis under appropriate circumstances.

We secured equipment for capacity expansions at our gas-fired power plant from establishedand leading manufacturers such as GE, Siemens and Alstom. Our capacity expansions have beensuccessfully carried out on schedule and within our planned budget. We used experiencedcontractors under monthly fixed price contracts, supervised by our experienced internal projectteam under the guidance of our director, Mr. Png Ewe Chai, who has overall responsibility for ourtechnical functions. Mr. Png has more than 35 years of experience in power generationdevelopment, project management and power plant operation. We have not used EPC contractorsfor our capacity expansions as it is more cost efficient for us to manage and select contractors forthe expansion work and we also have more flexibility to choose the equipment we find mostappropriate for our plant.

To complement our first gas-fired power plant and in anticipation of continued growth indemand from existing industrial estate customers and the addition of new industrial estatecustomers, we constructed a second gas-fired power plant in the MM-2100 industrial estate closeto our existing power plant as a backup plant to be operated as required. The current installedcapacity of our second gas-fired power plant is 109 MW and it uses a GE Frame 9E gas turbine.We commenced the construction of our second gas-fired power plant in the MM-2100 industrialestate in December 2012. In addition to its GE Frame 9E gas turbine, it consists of a 15-bay150kV switchyard with 12 bays fully equipped, four 60/80 MVA distribution transformers, aswitchgear building and a double circuit 150kV overhead transmission line interconnecting it toour gas-fired power plant in Cikarang. The 150kV switchyard and transmission line werecompleted and energized in August 2014, and the power plant was completed in the fourth quarterof 2014 and it commenced operations in July 2015. The second gas-fired power plant has agenerator voltage of 15kV and a main transmission voltage of 150kV. The 150kV supply isconnected to the 150kV system of our first power plant, and the electricity it generates issynchronized with the operation of our first gas-fired power plant at the 150kV level. The 150kVsupply also feeds into four distribution transformers, where it is stepped down to 20kV and isdistributed into our pre-existing distribution system to supply to our customers.

The aggregate cost of the construction of our second gas-fired power plant wasapproximately US$68.0 million. This amount includes direct construction costs such as directlabor, material and equipment costs, as well as other expenses such as design, development,project management and expenses related to permits and fees. We funded our capital requirementsrelated to the construction of our second gas-fired power plant through cash flow from operations.

On October 26, 2015, we and GE Capital entered into an MoU related to the development ofa planned 1,100 to 1,400 MW gas-fired combine cycle electricity generation facility in Indonesiautilizing General Electric’s Frame 9HA gas turbine model. The facility is intended to be built onland currently owned by us and located near Jakarta. The MoU sets forth the intended frameworkfor the development of the new gas-fired electricity generation facility to the mutual benefit ofboth parties. This transaction is subject to us and GE Capital reaching definitive agreementssetting forth the details of terms and conditions of the cooperation, including our securing a powerpurchase agreement with PLN for at least an additional 1,100 MW of supply.

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Our power plants use natural gas as the main fuel and diesel fuel as backup fuel in the event

of any natural gas supply shortage. We operated at an average monthly blended heat rate of 8,274

Btu/kWh for the year ended December 31, 2015 and 8,230 Btu/kWh for the six months ended June

30, 2016. We operated at an average monthly blended heat rate of 8,198 Btu/kWh for the year

ended December 31, 2014. See “—Natural Gas Supply.”

Our power plants supply electricity through our own 20kV distribution system to 2,223

customers in the five industrial estates. The power plant is also connected to PLN via a 150kV

double circuit overhead transmission line, and PLN currently dispatches between 180 MW to 300

MW of electricity varying on an hourly basis. In conjunction with the installation of our second

gas-fired power plant, we completed upgrades to our distribution network, including the addition

of four 60/80 MVA distribution transformers, which has increased our distribution capacity

throughout the MM-2100 industrial estate and the nearby estates of Lippo, Hyundai and the EJIP.

Current industrial customers require relatively consistent daily electrical loads from the existing

generating units, with weekday loads of about 480 MW and weekend loads of about 370 MW.

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Generation, Distribution and Supporting Ancillary Equipment

The following table provides a summary of our power plants’ generation, distribution andsupporting ancillary equipment as of June 30, 2016:

Generation Facilities Distribution Facilities Ancillary Equipment

• 6 GE Frame 6B (Model 6541) gas

turbines

• Complete with ELIN generators

rated at 38.3MW/11.5kV/50 Hz

each; dual fuel: natural gas or

diesel oil

• Fitted with fogging units to

increase gas turbine performance

in regions where ambient

temperatures are high

• Each equipped with diesel

starting engine

• 6 Stork Ketels HRSGs

• Located in the Frame 6Bgas

turbine compound

• Obtains water supply from in

house water treatment plant,

adjacent to West Tarum Canal

• 2 MHI Condensing type steam

turbines

• Each rated at 62.2MW/11.5kV at

3000RPM with Melco generators

• 4 GE Frame 9E (Model 9171) gas

turbines

• Complete with ELIN generators

rated at 126.1MW/15kV/50 Hz;

dual fuel: natural gas or diesel

oil

• 2 Alstom HRSGs

• Located in the Frame 9E gas

turbine compound

• Obtains water supply from in

house water treatment plant,

adjacent to West Tarum Canal

• 1 Siemens condensing-type steam

turbine

• Rated at 128.18 MW/15kV at

3000 RPM with a Brush

generator

• GE Frame 6B: 7 Step Up

150kV/11.5kV, 30/50MVA

Transformers

• GE Frame 9E: 4 Step Up

150kV/15kV, 100/160MVA

Transformers

• MHI steam turbines: 2 Step Up

150kV/11.5kV, 60/80MVA

Transformers

• 15 Distribution Transformers:

150kV/20kV, 60/80MVA

• Siemens steam turbine: 1 Step-Up

150kV/15kV, 100/160MVA

Transformer

• 5 Station Auxiliary Transformers:

20kV/380 220V, 4x800kVA and

1x1000kVA

• 4 Station Auxiliary Transformers:

20kV/400V, 1600kVA

• 4 Station Services Transformers:

11.5kV/6.3kV, 6.5MVA

• 2 Station Services Transformers,

20kV/6.3kV, 10MVA

• 1 Station Services Transformer,

15kV/6.3kV, 10MVA

• 4 Block Auxiliary Transformers,

6.3kV/380V, 2.5MVA

• 6 Unit Auxiliary Transformers,

11.5kV/380V, 1000kVA

• 3 Unit Auxiliary Transformers,

15kV/400V, 1250kVA

• 3 Stand by Diesel Engines complete

with generator, 380/220V, 250kVA,

500kVA, 500kVA

• 1 Standby Diesel Engine complete

with generator, 380/220V, 700kVA

• 2 Hamon Cooling Towers with 6

cooling water pumps in groups of

three per tower for the Frame 6B

combined cycle plant, each pump

rated at 50.0% duty, for the steam

turbine condensers

• 1 Stand by Auxiliary Boiler

(Cochran Thermax 1998), which was

installed for the initial

commissioning and startup of the

HRSGs

• 5 External Gas Compressor Sets

• 1 Hamon Cooling Tower with 4

cooling water pumps for the Frame

9E combined cycle plant, each pump

rated at 33.0% duty, for the Siemens

steam turbine condenser

Mechanical Equipment and Systems

As of June 30, 2016, our first power plant was equipped with three separate combined-cycletrains, with two of them consisting of three GE Frame 6B gas turbines, three dual-pressure StorkKetels HRSGs and a single MHI condensing-type steam turbine. The third train is comprised oftwo GE Frame 9E gas turbines, two dual-pressure Alstom HRSGs and a single Siemenscondensing-type steam turbine. Each GE Frame 6B gas turbine is rated at an installed generationcapacity of 30 MW, while each MHI condensing-type steam turbine is rated at an installedgeneration capacity of 60 MW. The two GE Frame 9E gas turbines are rated at an installed

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generation capacity of 109 MW each, and the Siemens steam turbine is rated at an installedcapacity of 128 MW. The first two GE Frame 6B gas turbines were installed in 1993 in asimple-cycle configuration, and in early 1996 four additional GE Frame 6B gas turbines wereinstalled again in a simple-cycle configuration. In 1998, HRSGs were added to each GE Frame 6Bgas turbine and two additional steam turbines were installed. At that time, the installed generationcapacity of the power plant in this configuration totaled 300 MW. Our three-stage capacityexpansion plan was launched in 2005, and the first stage was completed in July 2006 with theinstallation of the first GE Frame 9E gas turbine, which increased installed generation capacity to409 MW. The second stage was completed in December 2009 with the installation of the secondGE Frame 9E gas turbine, which increased installed generation capacity to 518 MW. The third andfinal stage of the capacity expansion plan was completed in March 2011 with the installation oftwo Alstom dual-pressure HRSGs and a Siemens condensing-type steam turbine, which increasedinstalled generation capacity to 646 MW. Both the GE Frame 6B gas turbines and the GE Frame9E gas turbines are dual-fuel capable, with natural gas as the primary fuel and diesel as thebackup fuel. In June 2012, we installed a third GE Frame 9E gas turbine with other separatelypurchased ancillary equipment, increasing the plant’s installed generation capacity to its currentlevel of 755 MW. The third GE Frame 9E gas turbine is being used as a backup unit to beoperated as required when any existing gas turbine unit undergoes maintenance or experiences ashutdown. Further, in December 2012, we added three 150kV switchyard bays, two of whichconnect the 150kV double circuit overhead transmission lines to our second gas-fired power plant,a 60/80 MVA distribution transformer and a switchgear building.

The construction of our second gas-fired power plant, a new 150kV transmission line and a15-bay 150kV switchyard commenced in December 2012. The 150 kV switchyard includes four60/80MVA distribution transformers, two 150kV interconnection bays to our gas-fired power plant,two 150kV interconnection bays intended for our coal-fired power plant, one bus coupler bay, onebay for the fourth Frame 9E gas turbine generator, one bay each for a future Frame 9E gas turbinegenerator and a future steam turbine generator, and three empty bays equipped with overheadconductors. Construction of our second gas-fired power plant was completed in December 2014,and the 150kV transmission lines and switchyard were completed and energized in August 2014.With the addition of the fourth GE Frame 9E gas turbine and ancillary equipment, our totalinstalled generation capacity increased to 864 MW.

The GE Frame 6B gas turbines are housed outdoors in waterproof acoustic enclosures. TheGE Frame 6B gas turbines are equipped with ELIN-manufactured generators rated at38.3MW/11.5kV/50Hz, which use natural gas or diesel oil to power the gas turbines. They are alsoequipped with a diesel starting engine that provides a black start capability in the unlikely eventthat all electrical supplies on site fail, and in the event of a black start the GE Frame 6B gasturbines would support start-up of the GE Frame 9E gas turbines.

The GE Frame 9E gas turbines are housed outdoors in a waterproof acoustic enclosure, andare also equipped with an ELIN generator rated 126.1MW/15kV/50 Hz that uses natural gas ordiesel oil. The GE Frame 9E gas turbines are started with an electric motor.

The HRSGs are located in two gas turbine compounds. They are of the horizontal type,designed for dual-pressure and natural circulation operation. Water for the HRSGs, cooling towersand general consumption is obtained from the in-house water treatment plant, which is fed by theadjacent West Tarum Canal. The water treatment plant is located outdoors next to the turbine hallin control administration building I, and a small deionization plant that provides de-mineralizedwater is located in the same turbine hall.

Two MHI condensing-type steam turbines that are each rated at 62.2MW/11.5kV at 3,000RPM are located in the turbine hall on the 3rd floor of the control administration building I andare equipped with a Melco generator. The Siemens condensing-type steam turbine is rated128.2MW/15kV at 3,000 RPM and is located in the turbine hall on the 3rd floor of the controladministration building II and is equipped with a generator manufactured by Brush.

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We believe we have a good relationship with our equipment suppliers.

Distribution Facility

We distribute electricity generated from the gas and steam turbines to PLN and the industrialestates at 150kV and 20kV, respectively. Our step-up transformers are directly connected to PLN’s150kV substation, which is located approximately 800 meters away from the power plant. Throughour distribution transformers, we provide electricity at 20kV and 380V to our customers in all fiveindustrial estates. For security and safety reasons, electricity is delivered to these customersthrough two underground feeder lines, one from a normal supply distribution transformer and theother from a standby distribution transformer. These two feeder lines terminate at our substationslocated throughout the estates.

Ancillary Equipment

Natural gas is the primary fuel for generating electricity and we source our natural gas fromtwo suppliers: Pertamina and PGN. Each supplier of natural gas utilizes a pipeline distributionsystem to deliver the natural gas to our power plant. See “—Natural Gas Supply.”

There are also two diesel oil storage tanks with a capacity of 2,000 tons each, designed toprovide adequate volume to support the operation of the power plant in the event of a natural gassupply shortage. The tank farm is placed approximately eight meters from the nearest distributionfacility.

Diesel fuel is readily available and we purchase it based on market prices. It is transportedto our power plant by road tankers and unloaded via four unloading bays to the storage tanks. Theequivalent volume of 4,000,000 liters of diesel fuel normally stored in the two tanks will allow acontinuous operation of the two Frame 6B combined cycle blocks for approximately 3.5 days.

In addition to the clarified water, treated water, potable water and demineralized waterproduced from the in-house water treatment plant, there is a single 150 mm diameter industrialgeneral service water main from the Jababeka Industrial Estate system providing, as backup,industrial water to the water tank that supplies water in case of fire.

Spare parts are kept in four warehouses located inside the power plant. Critical parts, mainlyspare nozzles and buckets for the major overhauls of gas turbines, are stored according to themanufacturers’ recommendations.

Control System

Overall control and monitoring of the two blocks of the GE Frame 6B generating units isimplemented by a distributed control system (“DCS”) in control administration building I, whichintegrates the control of the six GE Frame 6B gas turbines, the two steam turbines, the sixHRSGs, the water treatment system and the distribution system at our first gas-fired power plant.Similarly, the two GE Frame 9E gas turbines and the two associated HRSGs and the steam turbineare connected by another control and monitoring distribution control system, which is controlledfrom the control administration building II. The third GE Frame 9E gas turbine has its owncontrol system and is also controlled from the control administration building II. Monitoringfacilities are provided to allow cross monitoring of the operations from the control room in theother control administration building. The fourth GE Frame 9E gas turbine at our second gas-firedpower plant also has its own control system, which is operated from a local control cabinet withprovision for connections for future remote monitoring and control.

The control systems are also built to receive the station’s distribution data for monitoring itsnetwork status. The distribution system is controlled from a separate control room. The watertreatment plant has a local control system and operator workstation which is interfaced with theDCS. There are DCS operator and engineering workstations for both the power plant and thedistribution systems.

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The DCSs are designed and configured to protect the equipment through diagnostics,redundancy and hot stand-by systems. Reliability is achieved by using tested and provenproprietary hardware and software systems. Control consoles are linked to a sequence of eventrecorders, which will print out alarm conditions and provide information for diagnosing the causeof any failures.

Operating History

The table below provides a historical operating summary for our power generation plant,including reported net generation, fuel consumption, net plant heat rate, net capacity factor andavailability:

Period

Net

Generation

(MWh)

Fuel

Consumption

(MMBtu)

Net Plant

Heat Rate

(Btu/kWh-HHV)

Net Capacity

Factor (%)(1)

Availability

(%)(2)

2010(3) ...................................................... 3,106,925 31,034,837 9,989 66.6 91.5

2011 ......................................................... 3,945,468 33,234,698 8,424(4) 72.2 95.3

2012 ......................................................... 4,411,982 36,258,893 8,218 76.9 97.5

2013 ......................................................... 4,546,315 37,529,932 8,255 82.3 95.4

2014 ......................................................... 4,827,960 39,580,944 8,198 87.4 96.1

2015 ......................................................... 4,772,244 39,478,362 8,274 86.4 93.8

Six months ended June 30, 2015 ............... 2,411,534 19,663,970 8,154 88.0 99.2

Six months ended June 30, 2016 ............... 2,427,580 19,979,580 8,230 88.1 98.2

Notes

(1) The Net Capacity Factor is the ratio of our power plant’s total kWh generation in a given period to its maximumpossible kWh generation, which is based on 518 MW from December 27, 2009 to March 21, 2011 and 646 MW fromMarch 21, 2011 onwards (109 MW out of the 755 MW from June 6, 2012 and 218 MW out of the 864 MW fromJuly 2015 is considered standby capacity).

(2) The operating availability factor is calculated by the following: available hours/unit period hours where the availablehours is the period hours minus (scheduled outage hours plus forced outage hours).

(3) The higher net plant heat rate and the lower net capacity factor and availability in 2010 partially resulted from theshutdown of the two steam turbines associated with the GE Frame 6B gas turbines for their five-yearly periodicmaintenance in the first quarter of 2010, during which the associated GE Frame 6B gas turbines were running in asimple-cycle mode, and the other GE Frame 9E gas turbines were still running in a simple-cycle mode.

(4) The generating units include the six GE Frame 6B gas turbines operating in combined-cycle mode and the two GEFrame 9E gas turbines operating in a simple-cycle mode until March 21, 2011, after which they commenced

operating in combined-cycle mode.

The table below sets forth certain data relating to our operations, compared to thebenchmarks set by IEEE, for the periods indicated:

For the year ended December 31,

For the six months

ended June 30,

2010 2011 2012 2013 2014 2015 2015 2016

Network Distribution Losses

(%) ........................................ 0.71 0.57 0.69 0.57 0.58 0.62 0.60 0.58

SAIDI(1) (hours/customer/year) .. 0.29 0.21 0.36 0.11 0.20 0.11 0.08 1.41(4)

SAIFI(2) (times/customer/year) ... 0.43 0.61 0.55 0.16 0.25 0.18 0.11 0.91(4)

SAIDI(3) Benchmark

(hours/customer/year) ............ 2.13 2.38 2.10 1.92 1.92 1.92 1.92 1.92

SAIFI(3) Benchmark

(times/customer/year) ............. 1.17 1.16 1.08 1.08 1.07 1.07 1.07 1.07

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Notes(1) “SAIDI,” or the System Average Interruption Duration Index, is calculated as the sum of all customer interruption

durations, divided by the total number of customers served.

(2) “SAIFI,” or the System Average Interruption Frequency Index, is calculated as the total of all customerinterruptions, divided by the total number of customers served.

(3) Median values of the IEEE benchmark established under IEEE Standard 1366-2003/2012. The published medianvalue results for SAIDI established under IEEE Standard 1366-2003/2012 for the IEEE benchmark years 2013 and2014 are 1.92 and 1.92, respectively, and data presented for 2015 and 2016 are based on the standard of 2014. Thepublished median value results for SAIFI established under IEEE Standard 1366-2003/2012 for the IEEE benchmarkyears 2013 and 2014 are 1.08 and 1.07, respectively, and data presented for 2015 and 2016 are based on thestandard of 2014.

(4) The SAIDI and SAIFI for the six months ended June 30, 2016 took into consideration two events that occurredduring the second quarter of 2016. First, we experienced a failure of a current transformer in the 150kV switchyard,which resulted in the loss of power supply to several customers. The failed unit as well as similar units from thesame manufacturer were removed from service and replaced with those of another manufacturer. Second, an insulatorto a 150kV disconnect switch broke during a routine maintenance, resulting in loss of power supply. In the course ofreplacing the damaged part, a grounding cable broke loose, creating a short circuit and tripping several feeders. Thefault was cleared quickly and power supply was restored. All power supplies were normalized on completion of the

replacement work.

Management, Operation and Maintenance

Management. The power plant is under the operational control of a technical director whoworks with the station and project general manager, station manager, operation manager,maintenance manager, assistant managers and shift charge engineers. The shift charge engineersare responsible for the safety and operation of the plant, and assume total responsibility duringnormal working hours.

Operation and Maintenance Organization. The power plant and distribution network areoperated and maintained by our employees and are not operated or maintained by a third party. Weemploy various shift teams for the purpose of covering the plant operations and maintenance sevendays a week, 24 hours a day. During normal and extended working hours, station maintenance iscarried out by trained engineers and technicians. Outside normal and extended working hours, a“call out system” operates whereby the required staff will come in to do any necessary work, andadequate staff for routine operations and maintenance activities is retained. Scheduled shut-downsfor required maintenance and inspection occur pursuant to recommendations from equipmentsuppliers based on operating hours.

The maintenance department is responsible for the timely, safe and efficient maintenance ofthe plant and equipment, including all the information technology (“IT”) software and hardware atthe power plant necessary for the safe and effective repair or servicing of any part of the plant orequipment to prevent the occurrence or recurrence of faults. The tasks are categorized underplanned or preventive maintenance (“PM”) which involves work necessary to reduce the risk ofplant failure or corrective maintenance (“CM”) which involves repair of defects required to keepthe plant operational.

Operation and Maintenance Practices and Procedures. The power plant uses existingcomputer-based control systems for capturing and analyzing operation data. In addition, the powerplant uses an established computer-based maintenance management system to manage items andactivities such as maintenance data, procurement activities, inventory levels, inventory control,purchasing and maintenance.

We have specially trained instrumentation engineers on site responsible for carrying outintegrity inspection of the plant protection systems. Third-party inspection services are used forgas turbine, steam turbine and HRSG inspections.

The predictive maintenance program includes infrared thermography testing on electricalequipment, including transformers, switchgear and cables, and additional thermography testing isperformed on the HRSGs. All thermography testing is performed semi-annually.

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The power plant also has a well-equipped maintenance and repair workshop containing spareparts to supply field equipment maintenance and repair requirements.

Under repair and service agreements related to the GE Frame 6B and GE Frame 9E gasturbines, GE provides us with component parts and repair and field inspection services.

Scheduled maintenance is based on vendor recommendations and operating hours. The gasturbines have routine combustion inspections (“CI”), hot gas path inspections (“HGPI”) and majorinspections (“MI”), running in a cycle at approximately every 12,000-hour intervals and asrecommended by the manufacturer. A routine CI requires an outage of about seven days tocomplete, a routine HGPI requires an outage of about 14 days and a routine MI requires an outageof about six weeks. The steam turbines have major inspections at an interval of approximatelyevery five years and an outage of approximately six weeks. In January 2009, a GE Frame 6B gasturbine experienced generator damage on start-up after a standard holiday period shut-down andrequired repairs. The gas turbine was out of service for seven and a half months and came backonline on August 15, 2009. We maintain insurance that covers losses and liabilities resulting fromsuch mechanical failures. We obtained ISO9001:1994 certification in 2000, which was upgraded toISO9001:2000 in 2004, and to ISO9001:2008 in November 2009, with a fully updated review ofplant systems and procedures. The quality plan and procedures are subject to external audit at sixmonthly intervals, with formal certification renewal audit due every three years. The currentcertificate is valid until September 14, 2018. We obtained ISO14001:2004 certification in October2014, which is valid until October 23, 2017, and we obtained OHSAS18001:2007 in November2014, which is valid until November 10, 2017. Quality issues are addressed on a daily basis and atmonthly management meetings.

Summary of the Maintenance Schedule

Interval Downtime

Combustion Inspections (“CI”)............. 12,000-cumulative operating hours (As recommended by GE) 7 days

Hot Gas Path Inspections (“HGPI”) ..... 24,000-cumulative operating hours (As recommended by GE) 14 days

Major Inspections (“MI”) ..................... 48,000-cumulative operating hours (As recommended by GE) 6 weeks

Steam Turbines .................................... 50,000-cumulative operating hours (As recommended by the OEM) 6 weeks

Fire, Safety and Security

The power plant has a fire and safety team with trained fire and safety personnel reporting toa safety engineer and a safety supervisor. The safety officers are qualified firemen, and both thesafety engineer and the supervisor report directly to the technical director and meet monthly. Aregular equipment audit and work permit system is maintained. A lock out system for electricalrepair work using tags is operated. The plant is also equipped with firefighting gear from leadingmanufacturers, which has been installed to meet international standards.

Natural Gas Supply

Natural gas is the primary fuel we use to generate electricity. We currently source our naturalgas from two suppliers: Pertamina and PGN. Pertamina, which for the six-month period endedJune 30, 2016 supplied approximately 56.7% of our daily gas consumption, is a subsidiary of PTPertamina (Persero), a state-owned oil and gas enterprise involved in various activities, includingexploration, production, processing, marketing, distribution and trading of oil and gas products,and supplies the majority of the natural gas needed by our power plants. The Pertamina NaturalGas Agreement is effective through the earlier of October 31, 2016 (which represents a ten-monthextension from the original expiration date, as agreed in the Bridging Memorandum between usand Pertamina), or when the total contract defined amount of natural gas of 394,113 MMSCF hasbeen delivered, whichever comes first. We are in the process of negotiating an Extension of thePertamina Natural Gas Agreement until December 31, 2018. However, there can be no assurancethat we will be successful in doing so. See “Risk Factors—Risks Relating to Our Business—Our

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gas-fired power plants rely primarily on two natural gas suppliers and the failure of our suppliersto supply sufficient amounts of natural gas required for us to deliver contracted-for quantities ofelectricity to our customers may have an adverse effect on our business, financial condition andresults of operations.” As of July 31, 2016, the total amount of natural gas used by us under theterms of the Pertamina Natural Gas Agreement was approximately 340,736 MMSCF, and theremaining amount to be supplied was approximately 53,377 MMSCF. The Pertamina Natural GasAgreement specifies a minimum annual natural gas purchase amount starting in 2007 of 16,507MMSCF, which decreased to 16,414 MMSCF in 2015, the last full year of the Pertamina NaturalGas Agreement, on a take-or-pay basis. The Pertamina Natural Gas Agreement requires us tosecure our obligations thereunder through a standby letter of credit issued by Citibank in U.S.Dollars for a period of one year, extendable annually for a period of 20 years, the amount ofwhich must be the amount of daily delivery of gas multiplied by two times 31 and multiplied bythe price set out in the agreement. There is no penalty for excess usage. Under the PertaminaNatural Gas Agreement, we buy natural gas currently at a price of approximately US$4.54 perMMBTU for less than or equal to 21,772.8 MMBTU for natural gas used to produce electricityintended for PLN and US$7.00 per MMBTU for greater than 21,772.8 MMBTU for natural gasused to produce electricity intended for industrial estate customers, which increases by 3.0% everyyear until expiration. Pertamina has applied to MEMR for approval to move from this dual pricestructure to a single price structure where it sells to us natural gas at a uniform price, which mayresult in an effective increase in the natural gas prices we pay. See “Risk Factors—Risks Relatingto Our Business—If the cost of natural gas increases, our results of operations may be adverselyaffected.”

PGN, a state-owned gas supplier, for the six-month period ended June 30, 2016 suppliesapproximately 43.2% of our daily gas consumption. On May 20, 2013, we entered into a sale andpurchase agreement between us and PGN, dated November 28, 2007 and most recently amendedon June 30, 2015 (the “PGN Natural Gas Agreement (as amended)”). The PGN Natural GasAgreement (as amended) supersedes the original agreement and is effective from June 1, 2013 toMarch 31, 2020. The PGN Natural Gas Agreement (as amended) increased the supply volume from45.0 to 54.0 BBTU of gas per day to 47.5 to 57.0 BBTU of gas per day. The original agreementprovided that PGN shall sell, and we shall purchase, gas at a price equal to US$5.50 per MMBTUthrough November 30, 2009; it was subsequently amended to a price of US$4.30 per MMBTU plusRp750 per cubic meter. According to this formula, the current corresponding price would havebeen approximately US$9.10 per MMBTU. The PGN Natural Gas Agreement (as amended),however, provides that PGN shall sell, and we shall purchase, gas at a current price equal toUS$7.56 per MMBTU plus Rp750 per cubic meter, which is subject to escalation based ongovernmental policy. The PGN Natural Gas Agreement (as amended) provides for minimum andmaximum amounts of gas to be purchased by us. Each month we are required to purchase at leastthe minimum amount of gas then applicable. If, during any month we purchase gas in excess ofthe maximum amount of gas then applicable, the price per MMBTU increases by 250.0% withrespect to the amount of excess gas purchased. The PGN Natural Gas Agreement (as amended)requires us to secure our obligations thereunder through a standby letter of credit issued byStandard Chartered Bank, Indonesia Branch in the amounts of US$28.6 million and Rp81.7 billion,such amounts which must be adjusted to reflect any changes in the amount of gas supplied or theapplicable gas price.

Prior to 2016, we also sourced natural gas from Rabana, a gas distribution and tradingcompany that receives a fixed natural gas allocation of 4.95 MMSCF per day from Pertamina,which it supplied to us under a gas sale and purchase agreement dated January 19, 2005 andwhich expired on December 31, 2015. The agreement provided for the delivery of 18,068 MMSCFduring the contract period. Our purchase price under the contract was subject to an annualincrease of 3.0% and at the end of the contract period was US$9.1 per MMBTU. Our gas supplyfrom Rabana accounted for less than 4% of our total gas supply at the end of the contract period,

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for which reason we chose not to extend our contract with Rabana beyond December 2015. We areable to source sufficient amounts of natural gas from Pertamina and PGN to cover the amountswhich were provided by Rabana prior to 2016, though we may still source natural gas fromRabana on a non-contract basis under appropriate circumstances.

With the contracted supply of 46.5 to 62.0 MMSCF per day from Pertamina and 47.5 to 57.0MMSCF per day from PGN, we are currently entitled to a natural gas supply of approximately94.0 to 119.0 MMSCF per day. The total natural gas supply usage of our two gas-fired powerplants during 2015 was approximately 101 to 114 MMSCF per day, and during the six monthsended June 30, 2016 was approximately 104 to 106 MMSCF per day.

The price of natural gas in Indonesia has been and continues to be regulated by governmentpolicy. Typically, when this policy changes, we and Pertamina, PGN and Rabana must agree on arevised contract price, and thereafter Pertamina, PGN and Rabana would issue us a letter toformally amend the contract price that had been in effect previously. We would then proceed toimplement corresponding electricity tariff revisions with our own customers, subject togovernment regulations regarding electricity tariffs. In the past, we have been able to pass onincreases in gas prices to our customers. Pertamina has applied to MEMR for approval to movefrom our current dual price structure, where Pertamina sells to us natural gas at a differentiatedprice of US$4.54/MMBTU and US$7.00/MMBTU for natural gas used for producing electricityintended for PLN and industrial estate customers, respectively, to a single price structure wherePertamina sells to us natural gas at a uniform price. If the single price structure is approved byMEMR and results in an effective increase in the natural gas prices we pay, we intend to pass onsuch price increase to our customers, as contractually permitted and subject to governmentregulations regarding electricity tariffs. See “Risk Factors—Risks Relating to Our Business—If thecost of natural gas increases, our results of operations may be adversely affected” and “RiskFactors—Risks Relating to Government Regulation—We operate under a Government-regulatedtariff regime and are therefore unable to unilaterally adjust the pricing of electricity that we sell,and are subject to uncertainty resulting from the change in tariff policy under New Electricity LawNo. 30 and Regulation 14/2012.”

Between August and September 2006 we experienced difficulty in obtaining adequatesupplies of natural gas to meet customer electricity demands due to the inability of Pertamina tosecure sufficient sources of natural gas and deliver the volumes required under its contracts withcustomers. See “Risk Factors—Risks Relating to Our Business—Our gas-fired power plants relyprimarily on two suppliers of natural gas and the failure of our suppliers to supply sufficientamounts of natural gas required for us to deliver contracted-for quantities of electricity to ourcustomers may have an adverse effect on our business, financial condition and results ofoperations.” We have addressed this situation, in part, by operating the gas turbines on diesel fuel,which is more expensive than natural gas. In addition, we have contracted for additional naturalgas supplies from PGN.

Natural gas supplied by Pertamina is delivered by its gas stations at Cilamaya and Cicauh toPertamina’s Tegal Gede compression station, located approximately two kilometers away from ourgas-fired power plant. The natural gas is then delivered to a natural gas receiving station insideour power plant via an 18-inch pipeline. The gas receiving station is not our property and isoperated independently by PT Gasindo Pratama Sejati. We have recently completed construction ofnew transportation facilities for the supply of gas to our second gas-fired power plant under anagreement with Pertamina.

Natural gas supplied by PGN is used for the GE Frame 9E gas turbines and is deliveredthrough PGN’s distribution network linking the natural gas fields of Pertamina and ConocoPhillipsin Sumatra and additional natural gas fields in West Java. A 16 inch diameter supply pipelinedelivers the gas to three gas compressors located at our power plant, which compress the gas tothe required operating pressure before delivering it to the GE Frame 9E units.

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Water Supply

Water for our power plants is supplied from the West Tarum Canal, which also supplies water

to the city of Jakarta. Our total water requirements amount to almost 600,000 cubic meters per

month. We have a permit from the Ministry of Public Works, which allows for the withdrawal of

surface water in the amount of 600,000 cubic meters per month for our gas-fired power plants in

Cikarang which is valid until August 23, 2016 and which is currently in the process of being

extended based on our application dated June 23, 2016. We have a second permit from the

Ministry of Public Works that is valid until January 22, 2020 for the withdrawal of 136 liters per

second (or an equivalent average of 352,512 cubic meters per month) for use at our coal-fired

power plant in Babelan. We have also entered into a Water Uptake Agreement with Perusahaan

Umum (Perum) Jasa Tirta II, a state-owned company, dated September 12, 2007, as amended,

under which the maximum amount of raw water that is to be supplied to us is 600,000 cubic

meters per month at a price of Rp141.69 per cubic meter. The Water Uptake Agreement was

extended with effect from September 1, 2012 until September 1, 2017.

Our Coal-Fired Power Plant Construction

Overview

We are currently constructing a coal-fired power plant to complement our existing gas-fired

power plants and to diversify our fuel sources as we expand our customer base. We believe that

we currently have the right level of electricity demand to operate a power plant using coal, which

is relatively inexpensive and readily available and accessible to us in Indonesia. The coal-fired

power plant is being constructed on an approximately 72 hectare site in Babelan, Bekasi, which is

about 20 kilometers east of Jakarta. We believe this site is large enough to allow us to undertake

further expansion in the future if there is demand to support such expansion. The coal-fired power

plant will consist of two turbines, each being capable of producing installed generation capacity of

approximately 140 MW, representing total installed generation capacity of approximately 280 MW.

We estimate the aggregate cost of the construction of the coal-fired power plant to be

US$475.1 million, of which US$391.7 million has been spent as of June 30, 2016. This amount

includes direct construction costs such as direct labor, material and equipment costs, as well as

other expenses such as design, development, project management and expenses related to permits

and fees. In addition, we are also responsible for various direct and indirect costs not related to

engineering, procurement and construction costs, including items such as water supply, sanitary

sewer, natural gas service connection and electrical service connection. See “Risk Factors—Risks

Relating to Our Business—We may not be able to successfully complete the construction of our

new coal-fired power plant. In addition, we have no experience operating or managing a coal-fired

power plant.” We intend to fund the remaining capital requirements related to the construction of

the coal-fired power plant with cash on hand and cash flow from operations.

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Project Timeline and Key Milestones

We have executed contracts for the supply and erection of all the major equipment and fortheir initial construction, and work under such contracts has commenced and is progressing. As ofthe date of this offering memorandum, we have achieved several key milestones in theconstruction of our coal-fired power plant. The earthwork and ground improvement have beencompleted. The major equipment, such as the boilers, air-cooled condensers, steam turbines andgenerators, as well as the main structural steel materials, have been delivered to the site. Erectionof the first and second boiler is underway. Both the steam turbines and generators are on theirfoundations and the erection of their associated auxiliary systems and piping is underway. Theerection of the air-cooled condensers, coal handling system, water treatment plant and otherbalance of plant components is continuing. The engineering work is nearing completion, andalmost all of the contracts required for the completion of the coal-fired power plant are in place.The two boilers were successfully hydro-tested in August and October, 2015, respectively, and thecommissioning and operation of the two units are scheduled to be completed in October andDecember, 2016, respectively. We currently have amassed a stockpile of 180,000 tonnes of coal tosupport the commissioning and initial operation of the plant, and the control and electrical systemshave been energized and commissioning checks are underway.

The table below presents our indicative project timeline for the construction andcommissioning of our coal-fired power plant. The actual progress of the construction of our coalpower plant may differ from the timeline set out below, and the construction of the coal powerplant may not be completed on schedule or within budget. See “Risk Factors—Risks Relating toOur Business—We may not be able to successfully complete the construction of our new coalfired power plant. In addition, we have no experience operating or managing a coal fired powerplant.”

Key Milestone

Scheduled

Commencement Scheduled Completion

Status as of the

date of this

offering

memorandum

Preparatory Phase (Soil investigation, site identification,

planning, basic engineering, environmental approval) .... June 2011 December 2012 Complete

Engineering, Tendering and Procurement............................ February 2012 December 2015 Complete

Design, Equipment Manufacturing and Delivery to Site ..... October 2012 March 2016 Complete

Ground Improvement/Soil Import ....................................... December 2012 December 2014 Complete

Civil and Building Works................................................... May 2013 July 2016 Complete

Equipment Installation ....................................................... July 2014 July 2016 Complete

30 Km Transmission Lines ................................................. July 2012 September 2016 On Schedule

Testing, Commissioning and Operation (first boiler) .......... August 2015 October 2016 On Schedule

Testing, Commissioning and Operation (second boiler) ...... August 2015 December 2016 On Schedule

Owner-Management Construction Plan

We are not using an EPC contractor to manage (or provide single-point responsibility for) thecoal-fired power plant construction, but instead, are currently managing the various partiesproviding the engineering, procurement and construction services for the coal-fired power plantwith the assistance of a third-party engineering consultant, AF-Consult with whom we have had agood working relationship. We believe that it is more cost efficient for us not to use an EPCcontractor and we will also have more flexibility to customize the development of our powerplants and choose the equipment we find most appropriate for our plant. In addition, members ofour management have prior experience in the operation of a coal-fired power plant at differentcompanies.

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Construction Site

The coal-fired power plant is being constructed approximately 30 kilometers northwest of thecurrent power plant, on an approximately 72 hectare site in Babelan, Bekasi, which is about 20kilometers east of Jakarta. On March 21, 2011, December 12, 2011 and August 31, 2012, we wereissued location permits (the “Izin Lokasi”) by the Regent of Bekasi in respect of this site and wehave purchased the required land from local landowners. The site is located alongside theCikarang Bekasi Laut (“CBL”) canal, approximately eight kilometers from where the canaldischarges into the Java Sea, and will allow for barge transport of coal. The canal has a width ofabout 60 meters, and depth of 3.6 meters, maintained by dredging, allowing passage of barges of acapacity of up to 1,500 tons. Apart from the Izin Lokasi, we have also obtained a principal permitfor the coal-fired power plant issued by the Integrated Permit Services Board of West JavaProvince on July 18, 2011 and also obtained the AMDAL Recommendation and AMDAL Approvalfrom the Regent of Bekasi on April 18, 2013 and January 20, 2014, respectively. We haveobtained all relevant environmental permits from the Regent of Bekasi.

In addition to the land being used for installation of the permanent equipment related to thecoal-fired power plant, additional land is designated for, among other things, temporaryequipment, materials, parking for employees and construction trailers, all subject to specific landrequirements based on contractor needs.

The site, when completed, will include an unloading dock, reclaim and conveying systems,an outdoor coal storage area, boiler and combustion systems, steam turbines and condensersystems, flue gas systems, ash handling systems, electrical systems and additional relatedequipment and facilities such as a control and administration building, a warehouse and aworkshop.

Mechanical Equipment and Systems

According to our engineering plans, the coal-fired power plant will consist of two steamturbines, each being capable of producing installed generation capacity of approximately 140 MW,representing total installed generation capacity of approximately 280 MW. The capacity ofcommon systems and facilities for the plant, however, will be designed for an installed generationcapacity of 420 MW to allow for a potential future addition of a third 140 MW unit. The maincoal handling and storage systems will be capable of supplying a total of five such units, forwhich there is available land on the 720-acre site. The two steam turbine units will be aconventional condensing type with the necessary extractions of steam for auxiliary processes ofthe power plant. High pressure steam will be expanded through the steam turbines which will haverotating generators for electricity generation. The operation of coal-fired power plant is similar tothat of a gas-fired power plant with regard to the use of steam turbines to generate electricity, butdiffers with regard to the use of coal as the main fuel. We have hired personnel with relevantexpertise in coal handling to address this difference in the operation of our coal-fired power plant.

The coal-fired power plant will utilize coal as the main fuel. The boilers will use circulatingfluidized bed, or CFB technology, comprising fuel feeding ducts, combustion chambers with CFBnozzle systems, recirculation cyclones, bottom ash reclaiming systems and combustion air fans.Through the use of CFB technology, the coal-fired power plant is expected to be able to use awide range of coal and to achieve lower emissions of pollutants. In the fluidized bed combustionprocess, crushed fuel and limestone are injected into a furnace or combustor and suspended in astream of upwardly flowing air which enters the bottom of the furnace through air distributionnozzles. The particles are then collected by the solids separators and circulated back into thefurnace. The particles’ circulation provides efficient heat transfer to the furnace walls and longerresidence time for carbon and limestone utilization, allowing combustion to occur at a lowertemperature than traditional combustion processes. Because of the lower combustion temperature,significantly less nitrous oxide is produced. A simple ammonia injection system can be added asneeded to further reduce emissions to a very low overall level. CFB technology thus helps toreduce our overall emissions and impact on the climate.

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The coal-fired power plant’s heat rate is expected to be approximately 2,730 kcal/kWh(10,831 btu/kWh), with a coal calorific value of 4,300 kcal/kg. The fuel reception and handlingsystem will include an unloading dock with two grab-type ship unloaders, and a storage yard withtwo travelling bucket stacker-reclaimer systems and a redundant pair of belt conveyor systems,each with a capacity of 600 tons per hour. The storage area will be in an outdoor space and coalwill be transported to feeding bins in the boiler building through a coal conveyor system that willbe covered by a weatherproof canopy to prevent dust emissions into the environment. Coal willfirst be reclaimed from the coal yard with two stacker-reclaimers and then be transported furtherto a redundant pair of crushers, each with a capacity of 400 tons per hour. The coal will becrushed to a size of less than 10 millimeters in preparation for combustion before being conveyedto the boiler silos. Each boiler has two buffering silos with a total volume of 2,600 cubic meters,and may be operated 24-hours a day at full load. The crushing system will also include a filteringsystem to collect coal dust from the crushing and feed the dust back to the coal feeding systemsof the boilers.

At peak load, the power plant is expected to burn about 4,000 tons of coal per day,representing two units at maximum operation. We expect to maintain a supply of coal sufficientfor three months of consumption as a contingency in case sea conditions in the area are notsuitable for barging the coal all year round. The coal yard will have approximately 400,000 cubicmeters of storage, and an area for extension has been reserved nearby. The annual coalconsumption would be approximately 1,350,000 tons for two boilers and 2,018,000 tons for threeboilers. See “Risk Factors—Risks Related to our Business—Coal prices are cyclical and may besubject to significant fluctuations.”

The ash handling system will comprise a bottom ash reclaim system, a fall chamber reclaimsystem, an electrostatic precipitator fly ash reclaim system, ash silos, and related conveyors. Flyash in flue gases will be separated in the fall chamber behind the re-circulation cyclones and fromthe electrostatic precipitator. The ash will be collected to pneumatic transmitters which will moveash further to ash silos. Bottom ash from the bed will be discharged from the bed by water-cooledscrews and conveyed to ash silos. Both the fly ash and the bottom ash in the silos will be movedto a storage area by conveyors or trucks. Ash will be conditioned before transporting to thestorage area to avoid dust while dumping.

The coal-fired power plant will have a generator voltage of 15kV and the main transmissionvoltage will be 150kV. The 150kV supply will be connected to the 150kV system in the existingcombined cycle power plant and from which back-up supply will also be taken for the start-up ofthe coal-fired plant. The electricity supply generated from the coal-fired power plant will besynchronized with the operation of the combined cycle power plant at the 150kV level and itssupply will be distributed into our existing distribution system to supply to our customers.

The transmission line for our coal-fired power plant uses a right of way provided under anagreement with the river authority. As of the date of this offering memorandum, several sectionsof the line are already complete, and the full length of the line is scheduled to be completed andenergized by September 2016. We plan to handle maintenance of the line in-house, based on ourexperience maintaining our existing four kilometers of 150 KV lines. Inspections of the line areunderway as a part of the commissioning process, with the inspection of several sections alreadycomplete. We have identified two specialized contractor candidates so we may contract out theannual inspections of transmission line’s insulators and conductors, one of which we expect toengage within the next one to three months.

Off-Site Requirements

Water Supply. The estimated total water requirement for the coal-fired power plant aftercompletion is approximately 260,000 cubic meters per month. We will obtain this water from ariver less than two kilometers from the site, and we have obtained a permit from the Ministry ofPublic Works for the withdrawal of an amount of water up to 352,152 cubic meters per month.

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Wastewater Disposal. The coal-fired power plant will maintain its own wastewater treatmentsystem and treated wastewater will be discharged into the CBL canal. The quality of allwastewater will fulfill the applicable Indonesian effluent water regulations. We will need to obtaina waste discharge permit issued by the Integrated Permit Services Board of Bekasi three monthsafter the plant begins operations by submitting the results of a waste water analysis to confirm ourcompliance with regulatory standards.

Coal Supply. Coal will be sourced from South Kalimantan. The coal will be transported byocean going barge to the CBL estuary, where it will be transferred by floating crane to riverbarges and barged to the coal-fired power plant via the CBL canal. We expect to source betweenone million and 1.5 million tons of coal per year for the 280 MW plant, and have entered into afive-year coal supply agreement with PT Antang Gunung Meratus for the supply of 1,200,000metric tons of coal in 2016 and a minimum of 720,000 metric tons (with the option to increase ordecrease the supply by 10% each year after the first).

Light Fuel Oil/Gas System. Light fuel oil (“LFO”) will be used for the start-up burners of theboilers and the black-start diesel generator. The LFO is readily available and will be purchased atmarket prices, and will be trucked in and unloaded into a storage tank.

Environmental and Regulatory

Under the New Environmental Law No. 32 and Regulation 27/2012, we are required to obtainan environmental permit and approval for our AMDAL for the construction of the new coal-firedpower plant. On July 18, 2011, we obtained a principal permit for the coal-fired power plant inthe District of Babelan issued by the Integrated Permit Services Board of West Java Province. Weobtained the AMDAL Recommendation and AMDAL Approval for our coal-fired power plant inthe District of Babelan from the Regent of Bekasi on April 18, 2013 and January 20, 2014respectively. We have obtained all relevant environmental permits for the coal-fired power plant.See “—Environmental Matters;” “Risk Factors—Risks Relating to Government Regulation—Ouroperations are subject to Indonesian central, provincial and local environmental protection lawsand regulations and various environmental approvals, licenses or permits are required for theoperation of our first gas-fired power plant, our second gas-fired power plant and for theconstruction of our coal-fired plant;” “Risk Factors—Risks Relating to Our Business—We mayexperience delays or difficulties in obtaining certain Government approvals” and “Regulation ofthe Indonesian Power Generation Industry—AMDAL Process and Environmental Permit.”

Marketing and Customer Service

The marketing department, supervised by the marketing manager, serves as the focal pointfor potential and existing customers relating to the supply of electricity by us. Contracts areentered into in the form of capacity availability agreements with the industrial estate owners andpower purchase agreements with the industrial estate tenants. Standard model agreements are usedin forming the contracts. Our customers will typically give us six months’ to one year’s priornotice of request to activate the connection.

All requests for power supply from customers regarding new connections, capacity increaseor reduction, disconnection and termination are received by the marketing department and thenpassed on to the distribution department and technical support unit for preparing a design schemefor the supply of electricity to the customer. Upon return of the design information for newconnections to the marketing department, a power purchase agreement is prepared for signing byboth parties. In parallel with this, the finance and accounts department is requested to seekpayment for the connection charges, and the collection is then monitored by the marketingdepartment. When payment is made, the marketing department issues instructions to proceed to thedistribution department, which then finalizes the design and arranges a contractor to carry out thework. Throughout the construction and installation of new connections, marketing staff monitorthe work and coordinate the progress and other issues with the customer to ensure a satisfactorycompletion.

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Customer complaints and service requests are handled through the use of the marketingdepartment’s database, System Informasi Data Pelanggan (“SIDP”). During normal office hours,any technical complaint received by the marketing department is entered into the SIDP, and thedistribution department is assigned to address the complaint. After normal office hours, calls areanswered directly by distribution shift staff, who then enter the details of the complaint into theSIDP and address any related issues.

Complaints and other issues concerning the supply of electricity to PLN are similarlyaddressed.

Competition

We are engaged in electricity generation and distribution in Indonesia, and are the soleprivate electricity supplier supplying electricity to customers located in five of the sevenneighboring industrial estates in the Cikarang area. We provided electricity to approximately 95%of the tenants located in these industrial estates in 2013, approximately 95% of the tenants locatedin these industrial estates in 2014, approximately 96% in 2015 and approximately 96% for the sixmonths ended June 30, 2016, supplying approximately 87% of their total electricity consumptionin 2013, 88% in 2014, 88% in 2015 and 89% for the six months ended June 30, 2016.

Under the Old Electricity Implementing Regulations, the Minister of Energy and MineralResources could permit any company within a business area to generate electricity strictly for itsown use if it would be more economical than paying the electricity prices charged by theintegrated IUKU license holder in such area. Under New Electricity Law No. 30 and Regulation14/2012, the electricity distribution, electricity sale and an integrated power generation businessfor public use in a business area shall be conducted by one business entity, and such business areawill be determined by the Minister of Energy and Mineral Resources. The electricity licenseholder may purchase electricity or lease an electricity grid in order to fulfill the electricitydemand in its business area. MEMR Regulation 28/2012 was issued on November 27, 2012, andamended by MEMR Regulation 7/2016 on March 10, 2016. MEMR Regulation 28/2012 andMEMR Regulation 7/2016 further regulate the procedures for applying for a business area and alsogrants authority to the Directorate General of Electricity acting on behalf of the Minister ofEnergy and Mineral Resources to award a business area to more than one electricity license holderif (i) such area is not yet covered by the existing electricity license holder in the said businessarea; (ii) the existing electricity license holder of a certain business area is unable to provideelectricity or distribution line that meet the required standards of reliability and quality; or (iii)the existing electricity license holder relinquishes all or part of its business area to the Minister ofEnergy and Mineral Resources. If we are deemed to be incapable of providing electricity ordistribution line in our business area that meets the required standards of reliability and quality,the Directorate General of Electricity, acting on behalf of the Minister of Energy and MineralResources may award our business area to another electricity license holder, and therefore, therecan be no assurance that we will not in the future face competition in our business area, includingfrom PLN and other private sector participants. See “Risk Factors—Risks Relating to OurBusiness—Customers in the business area served by us may be able to receive electricity fromother sources due to recent regulatory changes and increased competition.” Accordingly, althoughNew Electricity Law No. 30 reflects the general principle that only one business entity will havepermission, within a single business area, to conduct an integrated power generation business forpublic use, the Minister of Energy and Mineral Resources retains the authority fundamentally toalter our competitive environment or our business in the future.

Prior to our commencement of operations in 1993, industrial estate tenants in the Cikarangarea were initially allocated portions of the available electricity supply generated by PLN. Inaddition to the overall shortage of power, industrial estate tenants at that time experiencedfrequent incidents of supply disruption and instability, which in turn led to reduced productivity,lower yields and accelerated wear and tear on the capital equipment of such industrial estate

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tenants. The industrial estate tenants who received initial allocations of electricity supply fromPLN prior to 1993 may continue purchasing electricity from PLN, and many of these earlyindustrial estate tenants, in the interest of supply diversification, continue to maintain activeconnections to the Java-Bali power grid with PLN.

During the period from 2002 to 2005, we experienced a decrease in the rate of growth ofsales of electricity as some of our customers decided to take advantage of high diesel fuelsubsidies provided by the Government and established their own internal power supply sourcesthat use diesel fuel. Although the Government abolished the diesel fuel subsidies in mid-2005 andmost of the customers who had internally generated a portion of their power requirements revertedto using our electricity for all of their power requirements, if the Government re-introduces dieselfuel or other similar subsidies in the future, it could encourage our existing customers to establishtheir own power supply sources. See “Risk Factors—Risks Relating to Our Business—Customersin the business area served by us may be able to receive electricity from other sources due torecent regulatory changes and increased competition” and “Risk Factors—Risks Relating to OurBusiness—Our electricity sales may be adversely affected if the Government re-introduces dieselfuel or other similar subsidies, or customers develop internal power supplies.”

In 2006, PT Bekasi Power (“Bekasi Power”), a subsidiary of PT Jababeka Tbk, applied to theregional government of Bekasi for an integrated IUKU license to supply electricity for public usein connection with a business area that was finally determined as the proposed industrial estate ofPT Gerbang Teknologi Cikarang, which is outside of the Jababeka industrial estate (an estatewithin our business area). On June 7, 2010, the Minister of Energy and Mineral Resources, byMinisterial Decision No. 283-12/20/600.3/2010, clarified the respective business areas of us andBekasi Power, and stated that Bekasi Power will not be permitted to supply electricity tocustomers located outside of its business area.

Property and Equipment

Our main property assets are our generation, transmission and distribution network assets andreal property associated with such network. We own land around our first gas-fired power plantwith a total area of 182,614 square meters and our coal-fired power plant with a total area of1,016,755 square meters, in the form of land rights or “Hak Guna Bangunan” (HGB), which alsocover land for future development. Our HGBs expire on various dates falling between 2022 and2041 for land around our first gas-fired power plant and 2042 and 2045 for land around ourcoal-fired power plant. We believe that our existing HGBs to each parcel will be renewed by theGovernment upon expiration. To support the future development of our business, we also possessland in the form of land relinquishment around our first gas-fired power plant with a total area of2,661 square meters, around our second gas-fired power plant with a total area of 125,350 squaremeters and around our coal-fired power plant with a total area of 1,433,536 square meters. See“—Our Gas-Fired Power Plants” and “—Our Coal-Fired Power Plant Construction.”

We lease our corporate headquarters in Jakarta.

Environmental Matters

The identification and management of our potential impact on the environment and theclimate is one of our key priorities. We maintain a culture in which minimizing our impact on theenvironment and the climate is an important element of our employees’ day-to-day work activities.Our environmental management system is certified according to the internationally-recognizedISO14001 standard. We carry out compliance audits twice annually with an internal audit followedby a management review and then an external surveillance audit conducted by Lloyd’s Register.Our Environment, Health & Safety policy summarizes our active commitment to continualmonitoring, review and improvement of our environmental performance, effective roles,communication and cooperation and measurable targets with regard to environmental matters,employee training, incident analysis and prevention, compliance with all government regulationsand participation and consultation of all employees.

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Our operations are subject to various environmental laws relating to water, air and noisepollution and the management of hazardous and toxic waste. We have obtained all materialenvironmental permits and licenses required for the construction and operation of our existingpower plants, our coal-fired power plant now under construction, and our distribution facilities.Although we believe that we are in compliance in all material respects with these environmentallaws, some risk of environmental costs and liabilities are inherent in our operations, and materialcosts and liabilities may be incurred in the future in this regard. Compliance with environmentallaws and regulations may also result in delays in the expansion and development of our generatingstation and transmission and distribution system.

Pursuant to Old Environmental Law No. 23 and Government Regulation No. 27 of 1999concerning Analysis on Environmental Impact, companies in certain prescribed sectors that havealready obtained a business license were required to be in compliance with the provisions of suchregulations within five years from the effective date of Old Environmental Law 23 and file certaindocuments such as AMDAL (environmental impact analysis), RKL (environmental managementplan) and RPL (environmental monitoring plan) concerning the impact of their activities. Webelieve we are in compliance with AMDAL and are up to date with our filings of the Report ofEnvironmental Management and Monitoring (Laporan Pengelolaan dan Pemantauan Lingkungan).

Under New Environmental Law No. 32 and Regulation 27/2012, a company that was requiredto obtain an AMDAL approval must obtain an environmental permit (izin lingkungan) that willallow it to conduct certain activities related to its business operations that affect the environment.This environmental permit will integrate all existing licenses relating to the management ofenvironment issued by the minister, a governor, or a regent/mayor in Indonesia (for example,license to manage hazardous waste, license to discharge waste into sea, license to discharge wasteinto water sources, among others), and the integration of these licenses into an environmentalpermit must be completed within one year from the enactment of New Environmental Law No. 32.However, any AMDAL approval that was issued prior to enactment of Regulation 27/2012 shall bedeemed to be an environmental permit. Accordingly, our AMDAL for our first power plant willremain valid and be deemed to be an environmental permit. In June 2012, we installed a third GEFrame 9E gas turbine with other ancillary equipment, increasing the plant’s installed generationcapacity to its current level of 755 MW. We are using the third GE Frame 9E gas turbine as abackup unit which is to be operated as required when any existing gas turbine unit undergoesmaintenance or experiences a shutdown and, therefore our AMDAL for our first power plant neednot to be amended provided the third GE Frame 9E gas turbine satisfies and continues to satisfythe following conditions: (i) it is constructed and installed in its original layout in our firstgas-fired power plant; (ii) its operation does not require any additional supporting facilities, gasfuel usage or water usage; (iii) it is operated only as a backup, emergency or enhancement powersupply to support our first gas-fired power plant; and (iv) its operation does not result inelectricity production in excess of the maximum permitted electricity production of our firstgas-fired power plant (that being an average of 540.89 MW and a maximum of 664 MW).

We obtained the AMDAL Recommendation and AMDAL Approval for our coal-fired powerplant in the District of Babelan from the Regent of Bekasi on April 18, 2013 and January 20, 2014respectively. The AMDAL assessment for our second gas-fired power plant in the MM-2100Industrial Estate, District of Cikarang Barat was approved on October 7, 2014. We have obtainedall relevant environmental permits for each of our second gas-fired power plant and the coal-firedpower plant. Further, if we decide to further increase the capacity of our first power plant, ourexisting AMDAL will need to be revised and approved by the relevant Government authority. See“Risk Factors—Risks Relating to Government Regulation—Our operations are subject toIndonesian central, provincial and local environmental protection laws and regulations and variousenvironmental approvals, licenses or permits are required for the operation of our first gas-firedpower plant, our second gas-fired power plant and for the construction of our coal-fired plant” and“Risk Factors —Risks Relating to Our Business—We may experience delays or difficulties inobtaining certain Government approvals.”

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Under Regulation 27/2012, we are required to report our environmental management practices

and procure guarantee for environmental functions recovery. A failure to do so may result in the

imposition of administrative sanctions ranging from a written reprimand to the revocation of the

environmental permit. In addition, under New Environmental Law No. 32, we are also required to

(i) maintain certain quality standards for water, sea water, air and pollution and (ii) obtain licenses

to manage hazardous and toxic waste if we manage our hazardous and toxic waste ourselves. If we

breach this obligation, we will be required to pay compensation to the injured party, remedy the

pollution condition or subjected to criminal sanctions.

Employees

We had 482 employees as of December 31, 2013, 555 employees as of December 31, 2014,

671 employees as of December 31, 2015 and 686 as of June 30, 2016 (excluding contract

employees, members of our Board of Directors and members of our Board of Commissioners). The

following table provides a breakdown of our employees by function as of the dates indicated:

As of December 31, As of June 30,

2013 2014 2015 2016

Distribution .................................................................... 83 95 97 102

Finance and Accounting ................................................. 15 16 26 26

General Management ...................................................... 1 15 16 28

Human resources development and support services ....... 149 177 222 182

Maintenance ................................................................... 96 106 125 138

Marketing....................................................................... 17 19 21 21

Operations...................................................................... 98 112 146 169

Purchasing ..................................................................... 11 15 19 20

Total .............................................................................. 482 555 671 686

As of June 30, 2016, none of our employees were members of any labor union. We consider

our relationship with our employees to be good. We currently have in place two-year company

regulations, which are guidelines for the conduct of employees and are valid until January 19,

2017.

We have established defined contribution pension plans covering substantially all of our

permanent employees. The assets of the pension plans are administered by Dana Pensiun Lembaga

Keuangan PT Bank Negara Indonesia (Persero) Tbk and Dana Pensiun Lembaga Keuangan

Manulife Indonesia. Under the pension plans, we contribute 5.0% of the employees’ basic salaries.

Adequate provision for the contribution has been made in our consolidated financial statements in

accordance with the rules of the pension plan. In addition to the pension plan, we maintain other

personal accident and working injury insurance.

Other retirement benefits that an employee receives and that are funded by us include a

post-employment benefit amount and health care benefits. We also provide our employees a long

leave benefit of one month after completing each five-year period of service, as well as a housing

allowance and other benefits. Health care benefits are also provided including certain medical

treatment for the whole family.

We have recruited management trainees from Indonesian universities through our graduate

recruitment program and expect to continue hiring, depending on our needs, to meet our staffing

demands at our new coal-fired power plant.

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Insurance

We maintain insurance coverage through policies issued by Indonesian insurers, which

include PT Tugu Pratama Indonesia, PT Asuransi Astra Buana, PT Asuransi FPG Indonesia, PT

AIG Insurance Indonesia, PT ACE Jaya Proteksi and PT Asuransi Sompo Japan Nipponkoa.

Our material insurance coverage includes the following insurance policies with regard to our

gas-fired power plants and, for special risk coverage, our coal-fired power plant:

• comprehensive machinery breakdown insurance including business interruption,

associated with property damage, machinery breakdown and earthquake, volcanic

eruption and tsunami insurance;

• terrorism and sabotage insurance;

• comprehensive liability insurance including third party bodily injury or personal injury

and property damage;

• property all risks insurance covering the coal stockpile and adjacent conveyer system of

our coal-fired power plant at Babelan;

• contractors’ all risks insurance covering contractors’ cabling works and civil and

electrical operations;

• construction third party liability insurance covering works in the Babelan CBL area; and

• property all risks insurance for transformers and turbine hall crane taken over at

Babelan.

The insurance policies arranged by us do not cover liability or damage arising from acts of

war and other customary exclusions from coverage.

As of June 30, 2016 our real and personal properties, including inventories and electrical

equipment, were covered by insurance against losses by fire, flood, earthquake and other risks

under blanket policies for US$617.0 million.

We paid an aggregate of US$0.9 million in 2013, US$1.0 million in 2014, US$1.2 million in

2015 and US$0.1 million for the six months ended June 30, 2016 in principal insurance policy

premiums, respectively. As of the date of this offering memorandum, only one insurance claim has

been filed since the commissioning of the power plant in October 1993. This insurance claim was

filed in relation to a Frame 6B gas turbine that experienced generator damage on start-up after a

standard holiday period shut-down in January 2009. The gas turbine required repairs and was out

of service for seven and a half months, becoming operational on August 15, 2009. This claim has

been settled and paid in the amount of US$5.9 million. As of the date of this offering

memorandum there has been no such further damage or insurance claim.

Our gas-fired power plant in Cikarang was granted VNO status on December 21, 2012 based

on a decree issued by the Minister of Energy and Mineral Resources. While we are responsible for

the security measures of our power plant in the ordinary course of business, in the event of a

security threat or disturbance involving the public, we are entitled to receive assistance from the

Indonesian police or armed forces for the protection of our power plant.

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Legal Proceedings

There are no governmental, legal or arbitration proceedings (including any such proceedingswhich are pending or threatened, of which we are aware) which we believe could reasonably beexpected to have a material adverse effect on our business, results of operations or financialposition. See “Risk Factors—Risks Relating to our Business—From time to time, we may beinvolved in legal and other proceedings arising out of our operations.”

On June 15, 2015, 17 individuals filed a claim at the Bekasi District Court under registrationNo. 289/PDT.G/2015/PN.Bks against Perusahaan Umum Jasa Tirta II (Water Management DivisionI) (“PJT”), Budi Prasetyo, Yapi Cornalius Gosal, the Ministry of Public Works and PublicHousing, the Governor of West Java, the Regent of Bekasi, the District Head of Babelan, theVillage Head of Muara Bakti and us in relation to a dispute over 72,925 square meters of landlocated at Muara Bakti Village, which, according to the claimants, has been controlled by themsince 1984 by way of their farming the land.

The claim alleges, inter alia, that the claimants never received any prohibition, warning, orclaim from other parties with regard to their rights to the land, and that they have incurred costsin utilizing the land. The claimants did not respond to warning letters sent by PJT on April 22 and24, 2015, as there was no prior discussion with the claimants in relation to the disputed landbefore the receipt of the warning letters. The claim further alleges that the claimants were notgiven a chance to convey their thoughts when a discussion was later conducted.

On April 27, 2015, Budi Prasetyo, Yapi Cornalius Gosal, the District Head of Babelan andthe Village Head of Muara Bakti entered the disputed land and set up fences, claiming that PJThad mandated that we take over the disputed land and that accordingly we had received a permitfrom the Ministry of Public Works and Public Housing, the Governor of East Java and the Regentof Bekasi. Budi Prasetyo also stated that such fencing was within our authority and offered theclaimants Rp10,000 per square meter as compensation, to which the claimants have not yet agreed.

Based on the above series of events, the claimants declared that the defendants hadcommitted a tort which caused them material and immaterial damages. On June 28, 2016, theBekasi District Court issued a decision which declared that the defendants in the above mentionedlawsuit had committed a tort and must pay damages to the claimants in a total amount ofRp729,250,000. Subsequently, on July 12, 2016, we filed for an appeal to the Bekasi DistrictCourt under registration No. 289/PDT.G/2015/PN.Bks jo.No. 61/Bdg/2016/PNBks.

As of the date of this offering memorandum, our motion to appeal remains with the BekasiDistrict Court. We believe that this dispute, if decided against us in our appeal, would have nomaterial adverse effect on us or our operations.

Corporate Social Responsibility (CSR)

We endeavor to conduct our business in a responsible manner which includes practicingcorporate social responsibility. Conducting our business with high regard for corporate socialresponsibility is among the values we have adopted from our founders and is deeply embedded inour organizational culture. For example, we have in recent years provided local communities withcontinuing mass medical treatment, constructed several school extensions, new classrooms andrefurbishments, and have built a complete new ‘madrasah’ (school). Additionally, we have alsoprovided flood disaster relief and clean water supply installations in Indonesia.

Intellectual Property Rights

We do not have any patents, registered trademarks or trade names other than rights to ourcompany logos, which are registered with the Ministry of Law and Human Rights and will expireon July 13, 2017.

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MANAGEMENT

The Issuer

Board of Directors

The Issuer’s board of directors is responsible for its day-to-day management. The majority ofthe directors of the Issuer are residents of the Netherlands. The day-to-day management is carriedout in the Netherlands and board meetings are normally held in The Netherlands. The directorsexercise their own discretionary authority with respect to the Notes issuance, and takeresponsibility for the proper implementation of the transactions carried out in connection with theNotes issuance.

The members of the Issuer’s board of directors are as follows:

Name Age Title

Mr. Henk Strengers .................................. 41 Managing Director B

Mr. Dick Marjot ........................................ 36 Managing Director B

Mr. Christanto Pranata ............................. 31 Managing Director A

Set forth below is a short biography of each of the above directors:

Mr. Henk Strengers. Mr. Henk Strengers serves as Managing Director B of Listrindo CapitalB.V. He joined Listrindo Capital B.V. in 2010 as an employee and was promoted to ManagingDirector in 2014. Mr. Strengers is charged with the general management of Listrindo Capital B.V.Previous to working for Listrindo Capital B.V., Mr. Strengers worked for Ernst & Young inAmsterdam and served as a director of a large Amsterdam-based real estate investment fund. Mr.Strengers has also worked as an interim manager at several Netherlands-based companies. Mr.Strengers holds a master’s degree in fiscal law from the University of Leiden. Mr. Strengers is acitizen of the Netherlands.

Mr. Dick Marjot. Mr. Dick Marjot serves as a Managing Director B of Listrindo Capital B.V.Mr. Marjot has a background in IT and finance, and previously served as a director of a softwarecompany where he was responsible for the overall bookkeeping and tax management. Mr. Marjotholds a Bachelor’s degree in Built Environment from the Academy of Utrecht. Mr. Marjot is acitizen of The Netherlands.

Mr. Christanto Pranata. Mr. Christanto Pranata serves as a Managing Director A of ListrindoCapital B.V. He previously served as an associate auditor in Purwantono, Suherman & Surja (Ernst& Young), ultimately rising to the position of manager. He graduated with a bachelor of Artsdegree in Economics and Accounting from the University of Indonesia in 2007, and received hiscertification as a Certified Professional Management Accountant from the Indonesia ManagementAccountant Institute in 2014 and his certification as a Certified Public Accountant from theIndonesia Public Accountant Institute in 2015. Mr. Pranata is a citizen of Indonesia.

The Parent Guarantor

Commissioners and Directors

The board of directors under the supervision of the board of commissioners carries out ourmanagement and day-to-day operations. The members of each board are appointed through ageneral meeting of shareholders.

The rights and obligations of each member of the board of commissioners and the board ofdirectors are regulated our Articles of Association. Under our Articles of Association, our board ofdirectors must consist of at least three directors, which consists of the President Director, the Vice

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President Director, and a Director. The President Director, or the Vice President Director in the

absence of the President Director, or two Directors in the absence of the President Director and

the Vice President Director, is/are entitled and authorized to act for and on behalf of the board of

directors and represent us, except with respect to borrowing or lending money (other than drawing

against an existing credit), binding us as guarantor, obtaining or disposing of fixed assets with thevalue above Rp50,000,000,000, pledging or encumbering any of our property or establishing asubsidiary company, in which case the approval of the board of commissioners is required. Theboard of commissioners must consist of at least three commissioners, which consists of thePresident Commissioner, the Vice President Commissioner, and a Commissioner. According to theOJK Regulation No. 33/POJK.04/2014, at least 30% of the board of commissioners of a publiccompany must be comprised of Independent Commissioners.

Commissioners and Directors are elected at the general meeting of shareholders, whichappoints such Director or Commissioner until the closing of the fifth subsequent annual generalmeeting of shareholders, without prejudice to the rights of the general meeting of shareholders todismiss a Commissioner or Director during his or her term of office or to reappoint aCommissioner or Director whose term of appointment has expired. Our officers serve at thediscretion of the board of directors.

Our shareholders and board of commissioners act as the overall supervisory and monitoringbodies. Decisions above certain monetary thresholds must be referred by our board of directors toour board of commissioners or shareholders for their review and approval. Our board of directorsacts as our primary day-to-day approval and decision-making body.

Our governance framework provides for checks and balances while allowing our managementflexibility for prompt decision making in the ordinary course of business.

Board of Commissioners

The members of our board of commissioners, which is responsible for our overallsupervision, are as follows:

Name Age Title

Mr. H. Ismail Sofyan ................................ 85 President Commissioner

Mr. Sutanto Joso ....................................... 74 Vice President Commissioner

Mr. Iwan Putra Brasali .............................. 51 Commissioner

Mr. Aldo Putra Brasali .............................. 49 Commissioner

Mr. Fenza Sofyan...................................... 50 Commissioner

Mr. Djeradjat Janto Joso ........................... 48 Commissioner

Mr. Drs. Irwan Sofjan ............................... 75 Independent Commissioner

Mr. Drs. Yosep Karnadi............................. 77 Independent Commissioner

Mr. Ir. Kiskenda Suriahardja ..................... 60 Independent Commissioner

Set forth below is a short biography of each of our Commissioners:

Mr. H. Ismail Sofyan. Mr. Sofyan is our President Commissioner and was President Directorfrom 1990 to 2007. He currently serves as Commissioner at PT Pondok Indah Investment, PTPondok Indah Land, PT Pondok Indah Development, PT Metropolitan Kentjana Tbk and PresidentDirector of PT Metropolitan Development. He previously served in several positions at PTMetropolitan Land Tbk, PT Penta Cosmopolitan, PT Metropolitan Horison Development, PTJakarta Land and PT Perentjana Djaja. He graduated with a Bachelor of Science degree inArchitecture from Bandung Institute of Technology in 1960. Mr. Sofyan is a citizen of Indonesia.

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Mr. Sutanto Joso. Mr. Joso is our Vice President Commissioner, a position he undertook in2015. He joined us in 1990. Mr. Joso currently also serves as a commissioner of PT UdindaWahanatama and President Commissioner of PT Ekaboga Inti. He previously served as ourPresident Director and Commissioner of PT Kawasan Industri Jababeka. He is also the founder ofPT Supra Boga Lestari Tbk. Mr. Joso is a citizen of Indonesia.

Mr. Iwan Putra Brasali. Mr. Iwan Brasali is a Commissioner. He was appointed aCommissioner in 2004. Mr. Iwan Brasali is currently the President Commissioner of PT GasindoPratama Sejati. He has also served in several positions at PT Budimulia Penta Realti, PTMetropolitan Kentjana Tbk, PT Puri Pacific Intiland, PT Puribrasali Realtindo, PT Brasali Realtyand PT Pacific Corponusa. He graduated with Bachelor of Science and a Master’s degree in CivilEngineering from the University of Southern California in 1987 and 1988, respectively. Mr.Brasali is a citizen of Indonesia.

Mr. Aldo Putra Brasali. Mr. Aldo Brasali is a Commissioner. He was appointed aCommissioner in 2006. Mr. Aldo Brasali is currently the President Director of PT Brasali Realtyand PT Pede Realty. He is a Commissioner of PT Metropolitan Land Tbk. He currently also servesin positions at PT Metropolitan Development and PT Caisson Dimensi. He graduated with aBachelor of Science degree in Architecture from the University of Southern California in 1990.Mr. Brasali is a citizen of Indonesia.

Mr. Fenza Sofyan. Mr. Sofyan is a Commissioner. He was appointed a Commissioner in 2004.He also serves in positions at PT Budimulia Penta Realti, PT Metropolitan Horison Development,PT Perentjana Djaja, PT Pentakencana Pakarperdana and PT Penta Cosmopolitan. He graduatedwith a Bachelor’s degree in Business Administration from Baldwin Wallace College in 1998. Mr.Sofyan is a citizen of Indonesia.

Mr. Djeradjat Janto Joso. Mr. Joso is a Commissioner. He was appointed a Commissioner in2004. He also serves as a Commissioner of PT Supra Boga Lestari Tbk and is the Commissionerof PT Gunaprima Karya Perkasa, the President Director of PT Primarasa Inti and UdindaWahanatama. He graduated with a Bachelor of Arts from the University of Southern California in1991. Mr. Joso is a citizen of Indonesia.

Mr. Drs. Irwan Sofjan. Mr. Drs. Irwan Sofjan is an Independent Commissioner. He wasappointed an Independent Commissioner in 2015. He previously served in positions at KAPPurwantono, Sungkoro & Surja, Ernst & Young, PT Bank Negara Indonesia (Persero) Tbk, theIndonesian Bank Restructuring Agency, the Financial and Development Supervisory Agency andthe West Java Regional Office Division III of the Directorate General of the Finance Ministry’sFinancial Supervision. He graduated with Bachelor of Accounting from the University ofPadjajaran, Bandung in 1967 and was named a Certified Fraud Examiner by the Association ofCertified Fraud Examiners in Austin, Texas, the United States in 2000. Mr. Irwan is a citizen ofIndonesia.

Mr. Ir. Kiskenda Suriahardja. Mr. Ir. Kiskenda Suriahardja is an Independent Commissioner.He was appointed an Independent Commissioner in 2015. He previously served in positions at PTTelekomunikasi Indonesia Tbk, PT Telekomunikasi Selular, PT Dayamitra Mitratel Joint OperationVI and PT Nasio Sdn Electric. Mr. Kiskenda earned a Master of Business Administration degreefrom the Institute of Management Prasetya Mulya, Jakarta in 1991 and a Bachelor of Engineeringdegree from the Faculty of Electrical Engineering Institute of Technology, Bandung in 1983. Mr.Kiskenda is a citizen of Indonesia.

Mr. Drs. Yosep Karnadi. Mr. Drs. Yosep Karnadi is an Independent Commissioner. He wasappointed an Independent Commissioner in 2015. Dr. Yosep Karnadi is currently the PresidentCommissioner of PT Mata Air Boga Lestari. He previously served in several positions at PTErakomindo Puranusa, PT Unicor Prima Motor and PT Meta Farma. He graduated with a Bachelorof Economics from the Faculty of Economics, Catholic University of Parahyangan, Bandung in1965. Mr. Karnadi is an Indonesian citizen.

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The business address of each director and each commissioner is the address of our registeredoffice.

Mr. Iwan Brasali and Mr. Aldo Brasali are brothers and they are shareholders of PT BrasaliIndustri Pratama, one of our principal shareholders. Mr. Fenza Sofyan is the son of Mr. IsmailSofyan, and he is a shareholder of PT Pentakencana Pakarperdana, one of our principalshareholders. Mr. Djeradjat Janto Joso is the son of Mr. Sutanto Joso, our President Director, andthey are shareholders of PT Udinda Wahanatama, one of our principal shareholders.

Board of Directors

The members of our board of directors, which is responsible for our day-to-day management,are as follows:

Name Age Title

Mr. Andrew K. Labbaika ........................... 52 President Director

Mr. Png Ewe Chai ................................... 69 Vice President Director

Mr. Matius Sugiaman ................................ 51 Commercial Director

Mr. Richard Noel Flynn ............................ 49 Technical Director (Independent Director)

Mr. Christanto Pranata .............................. 31 Financial Director (Independent Director)

Set forth below is a short biography of each of our Directors:

Mr. Andrew K. Labbaika. Mr. Labbaika is our President Director. He joined us in 1991 as aManager and was promoted to President Director in 2015. Mr. Labbaika is charged with theoverall supervision of our finance, accounting and commercial functions. He also serves asPresident Commissioner of PT Primarasa Inti, Director of PT Gunaprima Karyaperkasa, VicePresident Director of PT Ekaboga Inti and Director of PT Udinda Wahanatama. He graduated witha Bachelor of Science in Electrical Engineering and a Master of Business Administration from theUniversity of Southern California in 1987 and 1989, respectively. Mr. Labbaika is a citizen ofIndonesia.

Mr. Png Ewe Chai. Mr. Png is our Vice President Director. He joined us in 1994. He becameVice President Director in 2015 and is charged with the overall supervision for our technicalfunctions. Mr. Png has more than 37 years of experience in power generation development, projectmanagement and power plant operation. He previously held senior project management roles withcompanies including Monenco Associates Ltd., UK and PT Asianenco, developing PLN’s four unitsof 400MW coal-fired power plants in Suralaya. Mr. Png is a Chartered Engineer of MIET(Member of the Institution of Engineering and Technology) and graduated from the University ofMalaya with a degree in Electrical Engineering in 1970. Mr. Png was also a key member of theSuralaya coal-fired plant project. Mr. Png is a citizen of Malaysia.

Mr. Matius Sugiaman. Mr. Sugiaman is our Commercial Director. He joined us as a ProjectEngineer in 1992 and was promoted to Commercial Director in 2015. Mr. Sugiaman is chargedwith the overall responsibility for our commercial functions. He previously served in severalpositions at PT San Central Indah. Mr. Sugiaman graduated with a Bachelor of ElectricalEngineering from the Faculty of Electrical Engineering, National Institute of Technology, Bandungin 1989. Mr. Sugiaman is a citizen of Indonesia.

Mr. Richard Flynn. Mr. Richard Flynn is our Technical Director. He joined us as a StationManager in 2010 and was promoted to Technical Director in 2015. Mr. Flynn is charged with theoverall responsibility for our technical functions. Prior to joining us, Mr. Flynn had worked withGeneral Electric for more than 20 years. Mr. Flynn graduated with a Bachelor’s degree inMechanical Engineering from the College of Technology, Dublin, Ireland in 1990. Mr. Flynn is acitizen of Ireland.

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Mr. Christanto Pranata. Mr. Christanto Pranata is our Financial Director. He joined us in2014 as an Assistant Manager and was promoted to Finance Director and Company Secretary in2015. Mr. Pranata is charged with the overall responsibility for our financial and accountingfunctions. He previously served as an associate auditor in Purwantono, Suherman & Surja (Ernst& Young), ultimately rising to the position of manager. He graduated with a Bachelor of Artsdegree in Economics and Accounting from the University of Indonesia in 2007, and received hiscertification as a Certified Professional Management Accountant from the Indonesia ManagementAccountant Institute in 2014 and his certification as a Certified Public Accountant from theIndonesia Public Accountant Institute in 2015. Mr. Pranata is a citizen of Indonesia.

Mr. Sutanto Joso is the father of Mr. Djeradjat Janto Joso, a Commissioner, and they areshareholders of PT Udinda Wahanatama, one of our principal shareholders. Mr. Andrew Labbaikais also a shareholder and director of PT Udinda Wahanatama.

Senior Management

The members of our senior management, which is responsible for our day-to-daymanagement, are as follows:

Name Age Title

Mr. Frank Watson ..................................... 74 Vice President/Commercial Adviser

Mr. Winan Kusno ...................................... 47 Contracts Manager

Mr. Ir. Jannes Manuasa Sirait, MM ........... 58 Station Manager (Cikarang and MM-2100)

Mr. Didik Nurhandoko .............................. 52 Station Operation Manager (Cikarang and MM-2100)

Mr. Sami Petteri Sivola ............................. 38 Station Manager (Babelan)

Mr. Duriman Efendi .................................. 49 Station Operation Manager (Babelan)

Mr. Richard John Smith ............................ 50 Station Maintenance Manager (Babelan)

Mr. Rendra Purwanto ................................ 52 Station Maintenance Manager (Cikarang and MM-2100)

Mr. Ir. Adang Akhdiat ............................... 57 Distribution Manager

Mr. Yudho Pratikto.................................... 45 Marketing Manager

Mr. Rifqi Agustin Hakim .......................... 39 Human Resources Manager

Mr. Budy Hariono ..................................... 47 Finance & Accounting Manager

Mr. I Wayan Sudarmasana ......................... 50 Purchasing Manager

Set forth below is a short biography of each of our members of senior management:

Mr. Frank Watson. Mr. Watson is a Vice President/Commercial Adviser. He has more than 49years of experience in engineering, building and construction. Mr. Watson graduated from BristolPolytechnic and is a member of the Chartered Management Institute.

Mr. Winan Kusno serves as Contracts Manager. Mr. Kusno joined us in 2015. He has over 20years of experience in project management and operations in power generation industry. Hegraduated with a Bachelor’s degree in Mechanical Engineer from the Institute of Technology ofSepuluh November (ITS), Surabaya, Indonesia.

Mr. Ir. Jannes Manuasa Sirait MM. Mr. Sirait serves as Station Manager (Cikarang andMM-2100). Mr. Sirait joined us in 1993 and has over 38 years of experience in the powergeneration industry. He graduated with a Bachelor’s degree of Science in Engineering from theInstitut Sains & Teknologi Nasional and a Master’s degree in Marketing Management from STIEWidya Jayakarta.

Mr. Didik Nurhandoko serves as Station Operation Manager (Cikarang and MM-2100). Mr.Nurhandoko joined us in 1992. He has over 26 years of experience in the power generationindustry. He graduated with a Bachelor’s degree in Electronics from the Institut Teknologi SepuluhNopember in Surabaya, Indonesia.

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Mr. Sami Petteri Sivola serves as Station Manager (Babelan). Mr. Sivola joined us in 2013.He has over 12 years of experience in the power generation industry. He graduated with aBachelor’s degree in Science from Helsinki University of Technology.

Mr. Duriman Efendi serves as Station Operation Manager (Babelan). Mr. Efendi joined us in2015. He has over 13 years of experience in power generation industry. He graduated with aBachelor’s degree in Mechanical Engineer from Universitas Medan Area in Medan, Indonesia.

Mr. Richard John Smith serves as Station Maintenance Manager (Babelan). Mr. Richardjoined us in 2015. He has over 31 years of experience in the power generation industry. He isprimarily responsible for the maintenance of plant and equipment as well as all IT systems at thepower plant in Babelan. He previously worked as an apprentice for four years with the NewZealand Electricity Department and holds a Marine Engineering Certificate from the ManukauInstitute for Technology.

Mr. Rendra Purwanto. Mr. Purwanto joined us in 1995 as Station Maintenance Manager(Cikarang and MM-2100). He has over 20 years of experience in the power generation industry.He is primarily responsible for the maintenance of plant and equipment as well as all IT systemsat the power plant. Before joining us, he worked for PT Pupuk Kaltim, a fertilizer company whichproduces urea and ammonia. Mr. Purwanto graduated with a D1 degree from STM PembangunanBandung.

Mr. Ir. Adang Akhdiat. Mr. Akhdiat is Distribution Manager with over 24 years of powergeneration and distribution experience. Prior to joining us in 1994, he was a technicalsuperintendent at PT Bripindo Utama, where he oversaw plant facility maintenance, qualityassurance and local purchasing. He graduated with a Bachelor’s degree of Science in electricalengineering from Bandung Institute of Technology and a Master’s degree in MarketingManagement from STIE Widya Jayakarta.

Mr. Yudho Pratikto. Mr. Pratikto is Marketing Manager. He joined us in 1994. He has over21 years of experience in the power generation industry. He graduated with a Bachelor’s degree inIndustrial Engineering from Pasundan University and a Master’s degree in Marketing Managementfrom STIE Widya Jayakarta.

Mr. Rifqi Agustin Hakim. Mr. Hakim joined us in 2011 as Human Resources Manager. He hasover 12 years of experience in human resources. Prior to joining us, Mr. Hakim was a humanresources manager with PT Trakindo Utama and Sinarmas. Mr. Hakim graduated with a Master’sdegree in Human Resources Management from Kejuangan 45 University.

Mr. Budy Hariono. Mr. Hariono is our Finance and Accounting Manager. He joined us in1995. He has over 29 years of experience in finance and accounting practice. Prior to joining us,Mr. Hariono worked for PT Swadharma Indotama Finance. Mr. Hariono graduated with aBachelor’s degree in Accounting from Trisakti University in 1992.

Mr. I Wayan Sudarmasana. Mr. Wayan is our purchasing manager. He joined us in 1997. Hehas over 21 years of experience in engineering. Mr. Wayan graduated from Udayana University.

Compensation

The aggregate amount of salaries or other compensation, discretionary bonuses, otherallowances and benefits of commissioners, directors and principal senior management that hasbeen paid was US$20.7 million, US$21.5 million and US$26.2 million during the years endedDecember 31, 2013, 2014 and 2015, respectively, and US$11.3 million for the six-month periodended June 30, 2016. Except as discussed herein, no other compensation or benefits were given inthe years ended December 31, 2013, 2014 and 2015, and the six-month period ended June 30,2016 by us to our directors and principal senior management.

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Internal Audit

In accordance with OJK Regulation No. 56 /POJK.04/2015 on the Formation and Guidelineson Drafting the Charter of Internal Audit Unit, dated December 29, 2015 (“OJK Regulation56/2015”), and IDX Listing Regulation No. I-A, for the purpose of implementing good corporategovernance, an issuer or a public company is required to establish an internal audit unit, which isa working unit within the issuer or the public company that performs the internal auditingfunction. The internal audit unit must consist of at least one internal auditor. Where the internalaudit unit consists of one internal auditor, he or she must also act as the chief of the internal auditunit.

The main duties and responsibilities of the internal audit unit must include:

• preparing and implementing the annual internal audit plan;

• examining and evaluating the effectiveness of the internal control and risk managementsystem in accordance with company policy;

• conducting audits and assessments on the efficiency and effectiveness of such companyfunctions as finance, accounting, operations, human resources, marketing, andinformation technology;

• providing objective advice and information on audited operations at all managementlevels;

• reporting audit findings and furnishing such reports to the Audit Committee, PresidentDirector and Board of Commissioners;

• monitoring, analyzing and reporting on the progress achieved based on recommendationsmade by the internal audit division;

• cooperate with the Audit Committee;

• developing programs to evaluate the quality of the internal audit actions performed bythe internal audit division; and

• conducting special audits, where necessary.

We have formed an Internal Audit Unit pursuant to Decision Letter of the Board of DirectorsNo. 2015-X/001/DIR, dated November 18, 2015. Further, we have prepared an Internal AuditCharter pursuant to Decision Letter of the Board of Directors No. 2015-X/002/DIR, datedNovember 18, 2015, and have appointed Ms. Lucia Raditya Zagita Tanu as the Head of InternalAudit Unit pursuant to Decision Letter of the Board of Directors No. 2015-X/003/DIR, datedNovember 18, 2015.

Audit Committee

In accordance with IDX Listing Regulation No. I-A and OJK Regulation No. 55/POJK.04/2015 on the Formation and Working Guidelines of Audit Committees, dated December29, 2015 (“OJK Regulation 55/2015”), an issuer or a public company is required to have an auditcommittee for the purpose of implementing good corporate governance. We have formed an AuditCommittee Charter pursuant to Decision Letter of the Board of Commissioners No.2015-X/008/DIR, dated November 18, 2015, and have appointed Mr. Dr. Yosep Karnadi as thechairperson of Audit Committee, and Mr. Dr. Freddy Soetanto and Mr. Wiyandi as the othermembers of Audit Committee pursuant to Decision Letter of the Board of Commissioners No.2015-X/007/DIR, dated November 18, 2015.

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Nomination and Remuneration Committee

Under OJK Regulation No. 34/POJK.04/2014 on Nomination and Remuneration Committee of

the Issuer or Public Company, dated December 8, 2014, for the purposes of implementing good

corporate governance, an issuer or a public company is required to have the function of

nomination and remuneration conducted by the board of commissioners. The board of

commissioners may form a nomination and remuneration committee consisting of at least three

members, with an independent commissioner acting as the head of the committee, while the other

members may be: (i) members of the board of commissioners; (ii) outside the relevant issuer or

public company; or (iii) serving managerial positions under the board of directors in charge of

human resources.

We have formed a Nomination and Remuneration Committee and appointed Mr. Drs. Irwan

Sofjan as the chairperson, and Mr. Sutanto Joso and Mr. Iwan Putra Brasali as the other members,

pursuant to Decision Letter of the Board of Commissioners No. 2015-X/005/DIR dated November

18, 2015. Further, we have prepared Guidelines on the Nomination and Remuneration Committee

pursuant to Decision Letter of the Board of Commissioners No. 2015-X/006/DIR, dated November

18, 2015.

Corporate Secretary

In accordance with IDX Listing Regulation No. I-A, an issuer or a public company is

required to have a corporate secretary for the purpose of implementing good corporate governance.

The function of a corporate secretary must be performed by one of the directors of the listed

company or an official of the listed company who is specifically appointed to conduct such

function. In the event the corporate secretary is not a director of the relevant listed company, the

board of directors of the listed company is responsible for any information submitted by the

corporate secretary. OJK Regulation No. 35/POJK 04/2014 on Corporate Secretary of Issuer or

Public Company, dated December 8, 2014, also contains provisions regarding the corporate

secretary and its function. The functions, obligations and requirements of our corporate secretary

are determined by the Board of Directors, and, after our listing on the IDX, are also regulated by

OJK regulations and IDX regulations. We have appointed Mr. Christanto Pranata our Corporate

Secretary, with effect from November 18, 2015, to liaise (on our behalf) with OJK, IDX and other

related public institutions, based on Decision Letter of the Board of Directors No.

2015-X/004/DIR, dated November 18, 2015.

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PRINCIPAL SHAREHOLDERS

The following table sets forth the number of shares held by our principal shareholders as of

June 30, 2016:

Name of Shareholders Number of Shares

Percentage of Total Issued and

Outstanding Shares

PT Udinda Wahanatama ................................................ 4,973,434,600 30.92%

PT Brasali Industri Pratama .......................................... 4,350,323,700 27.04%

PT Pentakencana Pakarperdana ..................................... 4,350,323,700 27.04%

Public ........................................................................... 2,413,074,000 15.00%

Total............................................................................. 16,087,156,000 100.00%

PT Udinda Wahanatama

PT Udinda Wahanatama is a limited liability company domiciled in Jakarta with its principal

offices at the World Trade Centre 1, 17th floor, Jl. Jend. Sudirman Kav. 29-31, South Jakarta. PT

Udinda Wahanatama was incorporated on May 11, 1993. As of the date of this offering

memorandum, PT Udinda Wahanatama is mainly in the business of investing in utility and

electricity generation assets and gas pipeline services companies. PT Udinda Wahanatama is owned

by Mr. Sutanto Joso, our Vice President Commissioner, Mr. Djeradjat Janto Joso, one of our

commissioners, and Mr. Andrew K. Labbaika, our President Director.

PT Brasali Industri Pratama

PT Brasali Industri Pratama is a limited liability company domiciled in Jakarta with its

principal offices at Menara Batavia 32nd floor, Jl. KH. Mas Mansyur Kav. 126, Central Jakarta.

PT Brasali Industri Pratama was incorporated on July 27, 1994. As of the date of this offering

memorandum, PT Brasali Industri Pratama is mainly in the business of investing in utility and

electricity generation assets. PT Brasali Industri Pratama is owned by Mr. Iwan Putra Brasali and

Mr. Aldo Putra Brasali, both our Commissioners, and Marlena Dewi Brasali and Grace Dewi

Brasali.

PT Pentakencana Pakarperdana

PT Pentakencana Pakarperdana is a limited liability company domiciled in Jakarta with its

principal offices at Pondok Indah Office Tower 3, 9th Floor Suite 903, Jl. Sultan Iskandar Muda

Kav. V-TA, South Jakarta. PT Pentakencana Pakarperdana was incorporated on May 3, 1994. As of

the date of this offering memorandum, PT Pentakencana Pakarperdana is mainly in the business of

investing in utilities electricity generation assets and real estate. PT Pentakencana Pakarperdana is

owned by Mr. Fenza Sofyan, one of our Commissioners, and PT Utama Investama.

We only have one class of shares in issue with the same voting rights. As of the date of this

offering memorandum, members of the Joso, Brasali and Sofyan families beneficially owned 85%

of our outstanding shares and the public owned 15% of our shares.

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RELATED PARTY TRANSACTIONS

The following discussion describes certain material related party transactions between us

and our directors, commissioners, principal shareholders and affiliates. Each of these related

party transactions were entered into on fair and reasonable terms in the interests of us and our

shareholders.

PT Gasindo Pratama Sejati

On November 10, 1993, we entered into an agreement with PT Gasindo Pratama Sejati

(“GPS”) in which some of our shareholders have a shareholding interest. This agreement provides

for GPS to construct and operate a gas installation facility for the transportation of natural gas

from Pertamina to our power plant in consideration for a throughput fee of US$0.12 per MMBtu

and a throughput maintenance fee of US$0.24 per MMBtu of natural gas delivered. The term of

this agreement expired, but was extended by amendment dated February 22, 2007 effective from

April 1, 2006 until June 30, 2016, upon which it was extended to July 31, 2016 and then for a

further three months to October 31, 2016, or until the supply of natural gas from Pertamina to us

has reached 394,113 MMSCF. We intend to enter into a long-term extension of this agreement

upon finalization of the Extension to the Pertamina Natural Gas Agreement.

Throughput fees charged to us were US$5.1 million for the year ended December 31, 2013,

US$5.2 million for the year ended December 31, 2014, US$2.8 million for the year ended

December 31, 2015 and US$5.3 million for the six-month period ended June 30, 2016. The related

trade payables were US$0.5 million as of December 31, 2013, US$0.5 million as of December 31,

2014, US$0.01 million as of December 31, 2015 and US$0.5 million as of June 30, 2016.

PT Budimulia Penta Realti

On May 17, 2013, we entered into two agreements with PT Budimulia Penta Realti in which

some of our shareholders have a shareholding interest. These agreements were for the purchase of

office space located in JI. Prof. DR. Satrio Kav C 4, Kuningan Timur, Setiabudi, South Jakarta for

an estimated price of US$11.0 million. Our total advance payments under this contract amounted

to US$10.0 million as of December 31, 2015. We will be entitled to use the office upon payment

of at least 50% of the binding price and insurance premiums for the office. These agreements will

terminate upon the handover of the office space.

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REGULATION OF THE INDONESIAN POWER GENERATION INDUSTRY

New Electricity Law No. 30

On September 23, 2009, New Electricity Law No. 30 came into effect. New Electricity LawNo. 30 revoked and replaced the provisions of Old Electricity Law No. 15. Regulation 14/2012 asamended by Regulation 23/2014, which is the implementing regulation of the New Electricity LawNo. 30, revoked and replaced Government Regulation No. 10 of 1989 (“Regulation 10/1989”),which was the implementing regulation of Old Electricity Law No. 15. On November 27, 2012,the Minister of Energy and Mineral Resources also issued MEMR Regulation 28/2012, which onMarch 10, 2016 was amended by MEMR Regulation 7/2016.

Industry Framework

Under Old Electricity Law No. 15 and its implementing regulations, electricity supply inIndonesia was executed by the state and carried out by PLN as the exclusive holder of a PKUK toprovide electricity for public use. In addition, private sector participants were allowed to obtainlicenses to (i) generate electricity strictly for their own use or (ii) under limited circumstances andwith the approval of the central Government, to assist PLN in supplying electricity for public use.

Under New Electricity Law No. 30, Regulation 14/2012 and Regulation 23/2014, electricitysupply in Indonesia is no longer executed by the state and carried out by PLN as the holder of thePKUK. Instead, the electricity supply is controlled by the state and conducted by the centralGovernment and the regional governments through state-owned enterprises and regional-ownedenterprises. New Electricity Law No. 30 also allows private business enterprises, cooperatives andnon-governmental enterprises to participate in the power generation industry. However, PLN, as astate-owned enterprise is given first priority to be the electricity supplier for the public. If PLNdeclines the offer to undertake a public power generation industry for the specified area or isunable to provide sufficient supply, the central Government or the regional government, inaccordance with their respective authority, may offer the right to undertake the public powergeneration industry to regional-owned enterprises, private enterprises or cooperatives.

Types of Electricity Industry

New Electricity Law No. 30 divides the electricity industry into two main sectors, namely thepower generation industry and the electricity supporting business. The power generation industryis divided further into the power generation industry for the public and power generation industryfor own use. The power generation industry for the public covers electricity generation,transmission, distribution and sales. The electricity supporting business is further divided into theelectricity supporting services business and the electricity supporting industry business.

Power Generation Industry Licensing

Under Old Electricity Law No. 15, the power generation industry license was issued in theform of: (i) IUKU license, (ii) an electricity business license for self-use (Izin UsahaKetenagalistrikan Untuk Kepentingan Sendiri or “IUKS”), or (iii) a PKUK. However, under NewElectricity Law No. 30, the PKUK is no longer recognized, and the power generation industrylicense will be issued in the form of: (i) an IUPTL for the purpose of supplying electricity forpublic use, or (ii) an Operation License (Izin Operasi or “IO”), for the purpose of supplyingelectricity for private use. Under New Electricity Law No. 30, PLN is deemed to hold an IUPTL.An IUPTL may be issued for a period of up to 30 years, which may be extended.

Under the MEMR Regulation 35/2013, an IUKU that was issued by the Minister of Energyand Mineral Resources prior to the issuance of MEMR Regulation 35/2013 shall be valid until itsexpiration date. Upon the expiration of such IUKU, the IUKU license holder shall apply for a newelectricity business licenses for the purpose of supplying electricity for public use, namely anIUPTL.

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Coverage of Licenses

Under New Electricity Law No. 30, the IUPTL covers the following business activities: (i)

electricity generation, (ii) electricity transmission, (iii) electricity distribution and (iv) electricity

sale. An IUPTL can be issued separately for each type of electricity business activity, and New

Electricity Law No. 30 allows the integration of electricity business activities for a business entity

which conducts an power generation industry for public use.

Obligations of License Holder

Pursuant to New Electricity Law No. 30, a holder of an IUPTL is obliged to (i) continuously

supply electricity that meets the required standard of quality and reliability, (ii) provide the best

services to the consumers and society, (iii) comply with electricity safety standards, (iv) prioritize

the use of domestic products and supplies, and (v) provide a report on its power generation

industry to the issuer of its respective license. Pursuant to Regulation 14/2012, the Minister of

Energy and Mineral Resources, governor, or regent/mayor shall set the standard of quality and

reliability of supply electricity in accordance with their respective authority. A failure to meet this

obligation may result in the imposition of a penalty in the form of payment of compensation

related to the service level to the customer.

Business Area

New Electricity Law No. 30 maintains the concept of business area, which is an area that isprescribed and designated by the central Government within which a business that has an IUPTLmay conduct its business. New Electricity Law No. 30 also reflects the general principle that onlyone business entity will have permission, within a single business area, to conduct an integratedpower generation business for public use. This limitation also applies to business entities whoseactivities only cover distribution or sale of electricity for public use. MEMR Regulation 28/2012and MEMR Regulation 7/2016 further regulate the procedures for applying for a business area andalso grants authority to the Directorate General of Electricity acting on behalf of the Minister ofEnergy and Mineral Resources to award a business area to more than one IUPTL holder if (i) sucharea is not yet covered by the existing IUPTL holder in the said business area; (ii) the existingIUPTL holder of a certain business area is unable to provide electricity or distribution line thatmeet the required standards of reliability and quality or (iii) the existing IUPTL holderrelinquishes all or part of its business area to the Minister of Energy and Mineral Resources. If weare deemed to be incapable of providing electricity or distribution line in our business area thatmeets the required standards of reliability and quality, the Directorate General of Electricity,acting on behalf of the Minister of Energy and Mineral Resources may award our business area toanother IUPTL holder, and therefore, there can be no assurance that we will not in the future facecompetition in our business area, including from PLN and other private sector participants. See“Risk Factors—Risks Relating to Our Business—Customers in the business area served by us maybe able to receive electricity from other sources due to recent regulatory changes and increasedcompetition.”

Licensing Authorities

Under New Electricity Law No. 30 and Regulation 14/2012, the IUPTL may be issued by theregent or mayor, the governor or the central Government in accordance with the following scheme:

• For: (i) a business entity which has a business area that only includes a single regencyor municipality, or (ii) a business entity which sells electricity or leases electricitynetworks to a holder of an IUPTL that was issued by the regent or mayor, the IUPTLshall be issued by the regent or mayor

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• For: (i) a business entity which has a business area that covers multiple regencies ormunicipalities, (ii) a business entity which sells electricity or leases electricity networksto a holder of an IUPTL that was issued by the governor, the IUPTL shall be issued bythe governor; and

• for: (i) a business entity which has a business area that covers multiple provinces, (ii) astate-owned enterprise or (iii) a business entity which sells electricity or leaseselectricity networks to a holder of an IUPTL that was issued by the central Government,the IUPTL shall be issued by the central Government, particularly the Minister ofEnergy and Mineral Resources. Under MEMR Regulation 35/2014 on the Delegation ofAuthority to Issue Electricity Licenses in the Framework of Implementing One StopService to BKPM, the Minister of Energy and Mineral Resources has delegated itsauthority to issue IUPTLs to BKPM. The procedures for submitting license/approvalapplications and the required supporting documents are unaffected by MEMR Regulation35/2014. An application for an IUPTL continues to be governed by the procedures anddocuments set out in MEMR 35/2013.

Although our business area is located within a single regency, we also sell electricity toPLN, which is a holder of an IUPTL that was issued by the central Government. Under OldElectricity Law No. 15, and during the transition period to New Electricity Law No. 30, we haveliaised with the central Government with respect to all amendments to our IUKU. However, therecan be no assurance that we will be able to continue dealing with the central Government ratherthan Bekasi regency.

Transitional Provisions

Under New Electricity Law No. 30, all IUKU and IUKS licenses that have been issued underOld Electricity Law No. 15 will remain valid until their expiration date, provided that suchlicenses will be adjusted in accordance with the provisions of New Electricity Law No. 30 withintwo years. As the holder of an IUKU license previously issued under Old Electricity Law No. 15,our rights are preserved under the transitional provisions of New Electricity Law No. 30,including the rights over the business area. Also the provisions of New Electricity Law No. 30 andits implementing regulations that apply to IUPTL license holders also apply to us as the holder ofan IUKU. Although the implementing regulation of the New Electricity Law No. 30 has beenissued, it remains unclear how the adjustment process will be performed and what impact, if any,such an adjustment will have on holders of IUKU and IUKS licenses that are issued by the localgovernment. See “Risk Factors—Risks Relating to Government Regulation—We operate in ahighly regulated environment, and our business is highly dependent on the IUKU license.”

Tariff Structure

Under New Electricity Law No. 30, the central Government retains the authority to issuenational guidelines regarding electricity tariffs. However, each level of government, with theapproval of the national House of Representatives (in the case of the central Government) orregional House of Representatives (in the case of a regional government), has the authority to setelectricity tariffs for consumers within its sphere of authority. New Electricity Law No. 30expressly contemplates that tariffs charged to consumers may be different in each regionalbusiness area. Under Regulation 14/2012, the IUPTL holder shall submit a request to the Ministerof Energy and Mineral Resources, the governor or the regent/mayor, as applicable, to determine itselectricity tariffs. See “—Sales of Electricity to PLN” and “—Sales Prices to Consumers.” Furtherguidelines for obtaining determinations of tariffs for electricity sales to public consumers will beset out in ministerial regulations, governor regulations or regent/mayor decree. Until such furtherregulations or decree are issued, it is not yet clear how the new tariff policy under NewElectricity Law No. 30 will be implemented or how such implementation will affect our business,financial condition, results of operations or prospects. See “Risk Factors— Risks Relating to

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Government Regulation—We operate under a Government-regulated tariff regime and are thereforeunable to unilaterally adjust the pricing of electricity that we sell, and subject to uncertaintyresulting from the change in tariff policy under New Electricity Law No. 30 and Regulation14/2012.”

On October 7, 2015, the Coordinating Ministry on the Economy of the Republic of Indonesiaissued a new Economic Policy Package relating to, among others, the reduction of certainelectricity tariff and gas prices. The Economic Policy Package includes a decrease in theelectricity tariff for medium-sized industries using over 200 kVA of electricity and large-sizedindustries using over 30,000 kVA of electricity, a tariff discount of up to 30% for the utilizationof electricity during overnight hours in excess of a customer’s monthly electricity usage, and aone-month grace period for payment of annual electricity invoices for certain labor-intensiveindustries or financially challenged customers. The Economic Policy Package has beenimplemented and we have not observed a significant impact on our business, nor do we expectsuch an impact, as the circumstances under which its discounts apply are narrowly drawn and notapplicable to the majority of our customers.

Licensing Regime Currently Applicable to Us

Pursuant to the Old Electricity Law No. 15 and Regulation 10/1989, in principle, theMinister for Energy and Mineral Resources has authority over the issuance of electricity businesslicenses. Until April 2005, the authority to issue IUKU licenses to Indonesian private limitedliability companies having the status of foreign investment and domestic investment companieswas delegated by the Minister of Energy and Mineral Resources to BKPM. In 2005, the BKPM’sauthority to issue IUKU licenses was revoked and Governors and Heads of Municipalities(Bupati/Regent) were granted limited authority to issue IUKU and IUKS licenses, subject to thelocation and specifications of the applicable electricity business. However, all integrated IUKUlicenses (including ours) related to a business area that is connected to the national power gridcontinued to fall within the exclusive regulatory authority of the Minister of Energy and MineralResources. Moreover, the Regulation 10/1989 and Minister of Energy and Mineral ResourcesRegulation No. 0010 of 2005 also stipulated that the business area of an IUKU license holder wasdetermined by the Minister of Energy and Mineral Resources.

Under the Old Electricity Law No. 15 and Regulation 10/1989, the Minister of Energy andMineral Resources may issue an IUKU license for electricity generation, electricity transmissionor electricity distribution. In the case of a IUKU license holder operating an integrated electricitygeneration and distribution business, the Minister of Energy and Mineral Resources is entitled todelineate the business area in which such IUKU license holder supplying electricity to the publicmay conduct its business activities, and such integrated IUKU license holder is required toguarantee the sufficiency of electricity supply in its designated business area. Although holders ofan integrated IUKU license such as ourselves have the right to supply customers within theirdefined business area, other business entities may be granted licenses to supply electricity forpublic use within the same business area if the existing integrated IUKU licensee is incapable ofsupplying electricity on a reliable basis in that business area. See “Risk Factors—Risks Relatingto Our Business—Customers in the business area served by us may be able to receive electricityfrom other sources due to recent regulatory changes or increased competition.” Moreover,companies within a business area are entitled to generate electricity strictly for their own use,subject to certain requirements. See “—Captive Electricity Generation.”

Integrated IUKU license holders with a designated business area must prepare an ElectricityProcurement Business Plan, which is subject to approval by the Minister of Energy and MineralResources, governor or mayor/regent, in accordance with their respective authority. Such holder ofan integrated IUKU license must then implement the Electricity Procurement Business Plan. Inaddition, integrated IUKU license holders are required to submit a report of their operations onceevery three months to the Minister of Energy and Mineral Resources , governor or mayor/regent,

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in accordance with their respective authority. Any failure to comply with these requirements mayresult in the imposition of administrative sanctions, including the revocation of the IUKU license.As of the date of this offering memorandum, we have complied in all material respects with theserequirements.

Under the Old Electricity Law No. 15 and Regulation 10/1989, an IUKU license may begranted for a term of up to 30 years. In the event of any change in the capacity of the relevantpower generation facilities or in the business area of the IUKU license holder, the IUKU licensemust be renewed. In relation to the completion of the first stage of our capacity expansion plan inJuly 2006, which increased the installed generation capacity of our power plant from 300 MW to409 MW, the Ministry for Energy and Mineral Resources granted us a new IUKU license for aterm of 30 years beginning on December 11, 2006 for 474 MW, the ISO base-rated generationcapacity (the generation capacity based on technical specifications) for the plant, which is higherthan the installed generation capacity that is adjusted for site operating conditions. On September20, 2010, we received approval for amendment to our IUKU license to reflect further increasedISO base-rated generation capacity to 600MW. Upon completion of the third stage of the capacityexpansion plan in March 2011, on May 24, 2011, we submitted a letter of inquiry to the Ministerof Energy and Mineral Resources seeking approval for amendment of our IUKU license to reflectthe ISO base-rated generation capacity of 728 MW. On November 8, 2011, the Regent of Bekasiissued a decision approving the amendment of our IUKU license to reflect the ISO base-ratedgeneration capacity of 728 MW. In June 2012, a third GE frame 9E gas turbine was commissionedto generate electricity as a standby unit, increasing installed generation capacity to 755 MW. OnOctober 18, 2012, an amendment of our IUKU license was issued by the Regent of Bekasi toreflect the ISO base-rated generation capacity of 854 MW. This amended license for the increasedISO base-rated generation capacity of 854 MW is valid for thirty years from the date of issuance,and may be extended by submitting a written application within 60 days prior to the expirationdate. Further, on January 11, 2016 we obtained an IUPTL license for our second gas-fired powerplant for a capacity of 126 MW, which is valid for 30 years and may also be extended.

New Electricity Law No. 30 stipulates that an existing IUKU that has been issued under OldElectricity Law No. 15 shall remain valid until its expiration date. However, within two (2) yearsafter the issuance of New Electricity Law, the IUKU and IUKS holder shall adjust its IUKU andIUKS to conform to the provisions of the New Electricity Law No. 30. Although Regulation14/2012 and Regulation 23/2014, which are the implementing regulations of the New ElectricityLaw No. 30 have been issued, they do not provide the procedures for adjustment of the existingIUKU and IUKS. Under MEMR Regulation 35/2013, an IUKU that has been issued by theMinister of Energy and Mineral Resources prior to the issuance of MEMR Regulation 35/2013shall be valid until its expiration date. Upon the expiration of such IUKU, the IUKU licenseholder must apply for new electricity business licenses for the purpose of supplying electricity forpublic use, namely an IUPTL. However, procedures for adjustment of the existing IUKU andIUKS licenses that were issued by local governments remain unclear and until furtherimplementing regulations are issued to provide for such procedures, it remains unclear howapplications for future amendments to existing IUKU licenses will be processed. We will continueto follow the requirements of the Old Electricity Implementing Regulations in the process ofamending our IUKU license so long as such requirements do not contravene the provisions of theNew Electricity Law No. 30 and its implementing regulations.

Integrated Power Supply Businesses

The Old Electricity Law No. 15 and its implementing regulations provided that an IUKUlicense for an integrated power generation and distribution business can only be issued if therelevant business area is not being served by another integrated IUKU business, or if an existingintegrated IUKU license holder is incapable of supplying electricity on a reliable basis in suchbusiness area. Furthermore, these regulations require IUKU license holders for the generation,transmission or distribution of electricity to cooperate with holders of an integrated IUKU license.The New Electricity Law No. 30, Regulation 14/2012, Regulation 23/2014, MEMR Regulation

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28/2012, MEMR Regulation 7/2016 and MEMR Regulation 1/2015 also provide the samerequirements and conditions for integrated power supply businesses. However, MEMR Regulation28/2012 also provides that one business area may be served by more than one holder of IUPTL ifthe existing IUPTL holder is unable to supply electricity or distribution that meets requiredstandards of reliability and quality or surrenders all or part of its business area to the Government.Under MEMR Regulation 1/2015, in order to fulfill the electricity needs of its business area, anIUPTL holder may purchase electricity generated by other IUPTL holders. In such case, theelectricity price shall be determined in accordance with the benchmark prices set out by theauthority issuing the IUPTL held by the electricity purchaser. If there are no benchmark prices,the IUPTL holders may negotiate the electricity price and apply for approval from the authoritythat issued the purchaser’s IUPTL.

Sales of Electricity to PLN

PLN, as a state-owned enterprise with a right of first priority to carry out the supply ofelectricity for public use, is entitled to purchase electricity from the holder of an IUKU license,subject to approval by the Minister of Energy and Mineral Resources of the terms of saleincluding pricing. Under the Old Electricity Law No. 15 and Regulation 10/1989, PLN is generallyrequired to carry out electricity purchases from IUKU license holders through a competitive tenderprocess. However, an exception is provided for electricity purchases made from integrated IUKUlicense holders such as ourselves, which may be concluded through direct negotiations betweenPLN and the integrated IUKU license holder, provided that the final pricing and other terms ofsale remain subject to approval by the Minister of Energy and Mineral Resources. Under NewElectricity Law No. 30 and Regulation 14/2012, PLN is deemed as an IUPTL holder, and the saleof electricity between IUPTL holders (which also applies to electricity sales between us and PLN)may be concluded through direct negotiations between the parties, subject to approval of theMinister of Energy and Mineral Resources, the governor or the regent/mayor, depending on theauthority that issued the purchaser’s IUPTL. For sale of electricity involving PLN, the approvalshall be issued by the Minister of Energy and Mineral Resources. Under MEMR 1/2015, theapproval of the Minister of Energy and Mineral Resources shall not be required if the electricitysale price complies with benchmark prices set out by the Minister of Energy and MineralResources.

On January 13, 2015, the Minister of Energy and Mineral Resources issued Regulation No.03 of 2015 on Procedures on Purchase of Electricity and Basic Purchase Price on Electricity byPLN through Direct Selection and Direct Appointment (“MEMR Regulation 03/2015”) setting outthe benchmark prices payable by PLN for the purchase of power sourced from gas-fired powerplants (“PLTG”) and dual-fuel power plants (pembangkit listrik tenaga mesin gas, “PLTMG”). Byreferring to the benchmark prices under MEMR Regulation 03/2015, the power purchase price maybe adjusted in accordance with the terms of the power purchase agreement. In certain areas, PLNmay purchase power at prices higher than the benchmark price under MEMR Regulation 03/2015.In such cases, the power purchase price is calculated based on PLN’s own estimate and requiresapproval from MEMR. The benchmark prices for power sourced from PLTG/PLTMG are shown inthe following table:

Unit Net Capacity Class (MW) .................... 40-60 100

Price (cent USD/kWh) ................................. 8.64 7.31

Assumption ................................................

Availability Factor ....................................... 85%

Contract Period ............................................ 20 years

Heat rate BTU/kwh ...................................... 9083 8000

Gas Price USD/MMBTU .............................. 6.00

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Terms and conditions:

• If power plant functions as a peaking unit, the price calculation shall take into accountavailability;

• For PLTMG, the heat rate is calculated based on the manufacturer’s heat rate (heat ratepabrikan); and

• The pass-through principle shall be applicable to gas prices.

Captive Electricity Generation

Under New Electricity Law No. 30 and Regulation 14/2012, a company may apply for alicense to generate electricity strictly for its own use. Such a license can be granted by therelevant local government agency, assuming the applicable electricity facilities are located solelywithin the jurisdiction of that local government.

Investment Regulation

Investments in Indonesia are generally regulated under Law No. 25 of 2007 on CapitalInvestments (the “Investment Law”) which was issued on April 26, 2007. The Investment Lawprincipally regulates direct investments in Indonesia, in the form of foreign capital investments(Penanaman Modal Asing or “PMA”) and domestic capital investment (Penanaman Modal DalamNegeri or “PMDN”). In Indonesia, a foreign investor has to undertake its investment through anIndonesian legal entity in the form of a foreign investment limited liability company which maybe established using entirely foreign capital or by a joint venture with a domestic investor (“PMAcompany”).

As governed under the Investment Law, in order to encourage capital investment, theGovernment provides several incentives to PMA or PMDN companies such as relief or reductionof tax and customs and convenience in obtaining immigration and import services or permits.Another important feature of the Investment Law is the Government’s guarantee that it will notnationalize a PMA company, except where declared by law. In the event that the Governmentnationalizes any PMA companies or revokes their foreign investment licenses, it must paycompensation in an amount determined in accordance with the market price of the investment andif the parties fail to reach a mutual agreement in determining such compensation, it shall besettled through arbitration. This guarantee is accompanied by assurance that the foreign investorswill have authority to appoint the management of the PMA companies and the right to transfer andrepatriate in foreign currency, profit, bank interest, dividends and other means of income.

The Investment Law, however, also provides several obligations with which investors mustcomply, such as: (i) to apply the principle of good corporate governance; (ii) to implementcorporate social responsibility; (iii) to make a report on its investment activities and submit thesame to BKPM; (iv) to respect the cultural traditions of the community around the location of theinvestment business activities; and (v) to comply with all of the provisions as regulated under thelaws and regulations.

BKPM is assigned by the Investment Law to coordinate investment policies amonggovernment institutions. As one of its main objectives and in order to implement theone-stop-service policy required pursuant to the Investment Law, BKPM may issue a temporarylicense-in-principle for the PMA and PMDN companies to conduct their business. After such PMAor PMDN companies have commenced their commercial productions, BKPM will issue a businesslicense to the PMA or PMDN companies. In order to monitor the commercial productions of thePMA or PMDN companies, upon having obtained a business license from BKPM, every PMA orPMDN company is obligated to submit capital investment activity reports to BKPM on a

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semi-annual basis, subject to the terms of its relevant licenses. In the event that the commercialproduction capacity of the PMA or PMDN industrial company exceeds 30% of the installedcapacity, the relevant PMA or PMDN company must obtain an expansion license covering theadditional capacity from BKPM.

BKPM issued a set of important rules on investment licensing and other procedures, coveringboth PMA and PMDN companies, namely the Regulation of the Chairman of BKPM No. 5 of 2013concerning Guidelines and Procedures for Investment Permit and Non-Permit which came intoeffect on April 12, 2013 and has been amended by the Chairman of BKPM Regulation No. 12 of2013 (“BKPM Regulation 12/2013”), which came into effect on September 18, 2013. BKPMRegulation 12/2013 sets out that portfolio investments are governed solely under and by the LawNo. 8 of 1995 on Capital Market (“Capital Markets Law”) and that a non-PMA company (i.e.,PMDN or ordinary limited liability company), in which a controlling stake is acquired by anon-Indonesian through the stock market will no longer be required to convert to PMA status andbe exempted from the investment negative list.

Recently, BKPM Regulation 12/2013 was revoked by the Regulation of the Chairman ofBKPM No. 14 of 2015 concerning Guidelines and Procedures for Investment Principle License asamended by the Regulation of the Chairman of BKPM No. 6 of 2016 (“BKPM Regulation14/2015”), Regulation of the Chairman of BKPM No. 15 of 2015 concerning Guidelines andProcedures for Investment Permit and Non-Permit, and Regulation of the Chairman of BKPM No.16 of 2015 concerning Guidelines and Procedures for Investment Facilities Service, all of whichwere enacted on 8 October 2015. Such BKPM regulations aim to shorten the processing time forthe issuance of investment licenses and to ease the burden on investors in obtaining the necessarylicenses for their business. Further, BKPM Regulation 14/2015 indicating a potential attempt ofBKPM to consider a listed non-PMA/PMDN company, in the event that there is a name of aforeign investor recorded in a deed of such listed company, then the status of such listed companywill be required to convert to PMA status. BKPM Regulation 14/2015 will in essence apply tocompanies that are registered at BKPM. However, it is unclear whether or not the BKPMRegulation 14/2015 will apply to a ‘ordinary limited company (PT Biasa)’ that is not registered atBKPM.

We have the status of a domestic investment company which is regulated under the prevailinginvestment law and under the auspices of BKPM. As a result, our previous IUKU licenses wereissued by BKPM under the authority granted by the Minister of Energy and Mineral Resources.However, the amendments of our IUKU license to reflect the ISO base-rated generation capacityof 854 MW were issued by the regent of Bekasi in order to and as a result of the implementationof the decentralization of licensing authorities under New Electricity Law No. 30 and Regulation14/2012. We are still deemed a domestic investment company and thus, BKPM still exercisescertain powers over us and we must still comply with reporting obligations under the prevailinginvestment law.

AMDAL Process and Environmental Permit

In Indonesia, the environment is primarily protected under New Environmental Law No. 32.The New Environmental Law No. 32 contains several material provisions, including a requirementthat a mandatory environmental permit (Izin Lingkungan) shall be obtained by each enterprise thatis required to obtain an AMDAL or conduct environmental management effort/environmentalmanagement monitoring effort (“UKL/UPL”). The environmental permit is a prerequisite for acompany to obtain the relevant business license. If the environmental permit is revoked, thisautomatically results in the revocation of the business license. The New Environmental Law No.32 required all existing environment-related licenses to be consolidated into an environmentalpermit within one year of the enactment of the New Environment Law No. 32.

On February 23, 2012, the Government issued Regulation 27/2012 which sets forth the stagesto obtain environmental permit as follows: (i) the company shall prepare an AMDAL or UKL/UPL,as the case may be; (ii) it must undertake an evaluation of the AMDAL and an examination of the

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UKL/UPL; and (iii) it must then apply for an environmental permit. Under Regulation 27/2012, a

company’s AMDAL is submitted to an AMDAL approval commission for evaluation. Commissions

are set up at the central, provincial and regency/municipal levels, with the Central AMDAL

Commission being responsible for evaluating AMDAL in the case of, among other things,

activities and operations that are of national importance, involve two or more provinces, are

located more than 12 nautical miles offshore, or straddle the national frontier. At the provincial

level, the respective Provincial AMDAL commission has jurisdiction over activities and operations

that are of provincial importance, involve two or more regencies/municipalities in the same

province, or which are located less than 12 nautical miles of the province’s coast. Finally, at the

regency/municipality level, the respective Regency/Municipal AMDAL Commission is responsible

for “other activities and operations,” and those activities/operations that take place within one

third of the distance to the province’s maritime boundary. Upon evaluation, the relevant

commission forwards its decision to the state minister of the environment, governor or

regent/mayor, as the case may be, for final approval. As for UKL/UPL documents, these are

submitted for approval to the state minister of the environment, governor or regent/mayor based

on the same division of authority as described above in the case of AMDAL approval.

Pursuant to Regulation 27/2012, any AMDAL approval that was issued prior to the enactment

of the Regulation 27/2012 shall be deemed to be an environmental permit. However, a company

shall be required to apply for amendment to the existing environmental permit if it plans to make

changes, such as, if it decides to increase its capacity or to build additional new power plants. See

“Risk Factors—Risk Relating to Our Business—We may experience delays or difficulties in

obtaining certain Government approvals” and “Business—Environmental Matters.”

Regulation on takeover of Indonesian public company

BAPEPAM & LK Rule No. IX.H.1 defines a takeover of Indonesian public company as an

action, directly or indirectly, which results in a change of control of an Indonesian public

company. A controlling party of an Indonesian public company is defined as:

• a party who owns more than 50% of the total paid-up capital of an Indonesian public

company; and

• a party who has the ability to determine by any means possible, directly or indirectly,

the management and/or policy of an Indonesian public company.

Based on BAPEPAM & LK Rule No. IX.H.1, if there is any change of control of an

Indonesian public company, the new controlling party must carry out a mandatory tender offer of

the remaining shares (public shares, not including shares of the other controlling shareholders, if

any). If, as a result of such mandatory tender offer, the new controlling party holds more than

80% of the total paid-up capital of the Indonesian public company, such new controlling party

must divest its shares in such Indonesian public company within the two years following the

completion of the mandatory tender offer to ensure that the public continues to hold at least 20%

of the total paid-up capital of the Indonesian public company and that such Indonesian public

company is owned by at least 300 parties.

If, as a result of the takeover, the new controlling party already holds more than 80% of the

total paid-up capital of the Indonesian public company, such new controlling party must still carry

out a mandatory tender offer, even though it will later have to divest a portion of the shares it

acquires in the mandatory tender offer, to ensure that such Indonesian public company is owned

by at least 300 parties within the two years following the completion of the mandatory tender

offer.

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Regulation on related parties and conflicts of interest transactions in Indonesian publiccompanies

In order to protect the independent shareholders in relation to any transaction conducted by

Indonesian public company or any company which is controlled by such Indonesian public

company with its related party, BAPEPAM & LK Rule No. IX.E.1 requires such Indonesian public

company to publicly disclose information and/or submit a report to OJK of any such related party

transaction within two working days following the completion of such related party transaction

with due observance of the requirements of announcement and reporting and the exemption of

related party transaction under BAPEPAM & LK Rule No. IX.E.1. Furthermore, BAPEPAM & LK

Rule No. IX.E.1 affords the independent shareholders of Indonesian public companies the right to

vote to approve or disapprove of any transactions which contains any discrepancy between the

economic interests of the Indonesian public company and the personal economic interests of any

member of Board of Directors, any member of Board of Commissioners or any substantial

shareholder which may be by any means adverse to, or constitute a conflict of interest with, such

Indonesian public company. As a result, any conflict of interest transaction is required to be

approved by a majority of our independent shareholders before such Indonesian public company

enters into such transaction.

The requirement to publicly disclose and/or submit a report to OJK of any related party

transaction and the requirement to obtain approval from the majority of our independent

shareholders upon any transaction which entails a conflict of interest may be exempted if such

related party or conflict of interest transaction has been conducted before the consummation of the

Indonesian initial public offer by a publicly listed company or a submission of a registration

statement of the public company satisfies the following requirements:

• such transaction have been fully disclosed in the Indonesian prospectus by a publicly

listed company or in the disclosure of information in a registration statement by a

publicly listed company; and

• the terms and conditions of such transaction have not changed by any means which

would be adverse to such publicly listed company.

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THE ISSUER

The Issuer was incorporated as a private company with limited liability under the laws of

The Netherlands on June 11, 2007. The corporate seat of the Issuer is at Amsterdam, The

Netherlands. The registered office of the Issuer is at De entree 99-197, 1101 HE Amsterdam

Zuidoost, The Netherlands, and its telephone number at that address is +31 20-5554466. The

Issuer has been registered with the trade registry of the Chamber of Commerce under No.

34276492.

The Issuer is a wholly-owned subsidiary of Cikarang Listrindo.

The principal objects of the Issuer are set out in article 2 of its articles of association and

are, inter alia, to lend and borrow money, whether in the form of securities or otherwise, to

finance enterprises and companies, to grant security in respect of its obligations or those of its

group companies and third parties. As such, the Issuer is, inter alia, authorized to issue the Notes,

to finance the business of Cikarang Listrindo, including entering into the purchase agreement, the

Indenture and the other transaction documents to which it is or will be a party. The Issuer has not

engaged, since its incorporation, in any business activities other than the proposed issue of the

Notes and the issuance of the 2019 Notes and the issuance and repayment of the 9.25% Senior

Notes due 2015 issued in January 2010.

As of the date of this offering memorandum, the directors of the Issuer are Mr. Henk

Strengers, Mr. Dick Marjot and Mr. Christanto Pranata, whose business address for the purpose of

their directorship of the Issuer is De entree 99-197, 1101 HE Amsterdam Zuidoost, The

Netherlands.

As of the date of this offering memorandum, the authorized share capital of the Issuer

consists of EUR 90,000 divided into 90,000 ordinary shares with a nominal value of EUR 1 each.

A total of 18,000 shares have been issued and paid up upon incorporation of the Issuer. All issued

ordinary shares will be in registered form, and no share certificates will be issued.

As of the date of this offering memorandum, the Issuer has no borrowings or indebtedness in

the nature of borrowings (including loan capital issued, or created but unused), term loans,

liabilities under acceptances or acceptance credits, mortgages, charges or guarantees or other

contingent liabilities, except for the 2019 Notes and as otherwise described in this offering

memorandum.

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DESCRIPTION OF EXISTING INDEBTEDNESS

The following description summarizes selected provisions of certain of our materialindebtedness. This description is a summary and should not be considered to be a full statement ofthe terms and conditions of such agreements.

6.9500% Senior Notes due 2019

The Issuer issued the 2019 Notes in February 2012, guaranteed by Cikarang Listrindo. The2019 Notes are Cikarang Listrindo’s senior obligations and rank at least pari passu in right ofpayment with all of Cikarang Listrindo’s other unsecured, unsubordinated indebtedness, subject toany priority rights of such unsubordinated indebtedness pursuant to applicable law. As of the dateof this offering memorandum, we had a total of US$500.0 million in aggregate principal amountof the 2019 Notes outstanding. We plan to use a portion the net proceeds of this offering toredeem all the 2019 Notes in full. See “Use of Proceeds.”

Interest

The 2019 Notes bear interest at 6.9500% annually, payable semi-annually in arrears.

Covenants

Subject to certain conditions and exceptions, the 2019 Notes restrict the ability of CikarangListrindo and the ability of its subsidiaries which are restricted subsidiaries to, among otherthings:

• incur or guarantee additional indebtedness and issue certain preferred stock;

• make certain payments, including dividends or other distributions, with respect toCikarang Listrindo’s shares;

• prepay or redeem subordinated debt or equity;

• make certain investments and capital expenditures;

• create encumbrances or restrictions on the payment of dividends or other distributions,loans or advances to and on the transfer of assets;

• sell, lease or transfer certain assets, including stock of restricted subsidiaries;

• engage in certain transactions with shareholders or affiliates of Cikarang Listrindo;

• create or incur certain liens;

• impair the security interests for the benefit of the noteholders;

• enter into certain sale and leaseback transactions;

• enter into unrelated businesses or engage in prohibited activities; and

• consolidate or merge with other entities.

Events of Default

The 2019 Notes contain customary events of default, including a default in the payment ofprincipal when due, default in payment of interest that continues for 30 days, and other events ofdefault similar to those to be set forth in the indenture governing the Notes being offering in thisoffering. If an event of default (other than an event of default relating to certain bankruptcyevents) occurs and is continuing, the trustee for the 2019 Notes or the holders of at least 25% inaggregate principal amount of the 2019 Notes then outstanding, by written notice to the Issuer

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(and to the trustee for the 2019 Notes if such notice is given by such holders), may declare theprincipal of the Notes 2019 Notes to be immediately due and payable. If an event of defaultrelating to certain bankruptcy events occurs, the principal of the 2019 Notes will automaticallybecome immediately due and payable.

Change of Control

Not later than 30 days following the occurrence of certain events of change of control and arating decline, the Issuer or Cikarang Listrindo is required to make an offer to repurchase all ofthe 2019 Notes outstanding at a purchase price equal to 101% of their principal amount plus anyaccrued and unpaid interest.

Maturity and Redemption

The maturity date of the 2019 Notes is February 21, 2019. At any time on or after February21, 2016, the Issuer may redeem the 2019 Notes, in whole or in part, at a redemption price equalto the percentage of principal amount set forth in the table below if redeemed during each periodindicated below, plus any accrued and unpaid interest to the redemption date:

Period Redemption Price

2016 ................................................................................................................................................. 103.4750%

2017 ................................................................................................................................................. 101.7375%

2018 ................................................................................................................................................. 100.0000%

Additionally, if the Issuer or Cikarang Listrindo becomes obligated to pay certain additionalamounts as a result of certain changes in specified tax law, the Issuer may redeem the 2019 Notes,in whole but not in part, at a redemption price equal to 100% of the principal amount of the 2019Notes, plus any accrued and unpaid interest, subject to certain exceptions.

Material Credit Agreements

PT Bank UOB Indonesia (“UOB”) Standby Letter of Credit Agreement

On April 30, 2013, the Parent Guarantor and UOB entered into a standby letter of credit(“SBLC”) facility agreement, which will expire on September 12, 2016, in the amount of up toEUR 15.0 million. As of August 2015, the Parent Guarantor has discontinued use of the SBLCfacility provided by UOB.

Standard Chartered Bank (Jakarta Branch), (Uncommitted) Credit Facility Agreement

On March 13, 2015, the Parent Guarantor and Standard Chartered Bank entered into a facilityagreement whereby it has agreed to provide to the Parent Guarantor a foreign exchange facilityand an additional facility, of a combined maximum amount not to exceed US$50.0 million,comprised of (i) a bond and guarantee facility amounting to US$50.0 million; (ii) an import letterof credit facility amounting to US$20.0 million; and (iii) a financial guarantee/SBLC facilityamounting US$50.0 million. Under such facilities, the Parent Guarantor has utilized the SBLCfacility for the purpose of payment for the purchase of natural gas from PGN, first on August 18,2015 in the amount of Rp81.7 billion (SBLC No. 901020395573), which effective from September1, 2016 will be reduced to Rp73.3 billion (SBLC No. 901020395573-BS), and again on August 19,2015 in the amount of US$28.6 million (SBLC No. 901020395546), which effective fromSeptember 1, 2016 will be reduced to US$25.9 million (SBCL No. 901020395546-BS). Both ofthese SBLCs will expire on August 31, 2017. The initial term of this facility agreement expired onApril 30, 2016 and was automatically renewed for a term of 12 months under its terms, and issubject to ongoing automatic renewals every 12 months, except as otherwise determined byStandard Chartered Bank from time to time.

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Citibank N.A., Jakarta Letter of Credit Agreement

The Parent Guarantor obtained from Citibank, N.A. Jakarta on August 14, 2015 an SBLC in

an amount of US$17.1 million, which was increased to US$21.1 million on January 15, 2016

(SBLC No. 5865601281). This SBLC was issued for the purpose of payment for the purchase of

natural gas from Pertamina. Based on Amendment to the SBLC No. 5865601281 dated June 30,

2016, this SBLC will expire on December 31, 2016.

The Parent Guarantor obtained from Citibank, N.A Jakarta on August 3, 2015 an SBLC in the

amount of EUR8.0 million, which was issued in favor of Valmet Technologies Oy (SBLC No.

5865601268). This SBLC will expire on September 12, 2016. The Parent Guarantor does not

intend to renew this facility.

Citibank N.A., Jakarta (Uncommitted) Credit Facility Agreement

On August 27, 2015, the Parent Guarantor and Citibank, N.A., Jakarta entered into a credit

facility agreement whereby it has agreed to provide to the Parent Guarantor a short term credit

facility in an amount of up to US$50.0 million. The agreement contains several negative

covenants, whereby the Parent Guarantor is required to obtain written approval from Citibank,

N.A., Jakarta prior to (i) any change in the Parent Guarantor’s shareholding which results in the

current shareholders, collectively, ceasing to own, directly or indirectly, at least 51% of the

subscribed shares of the Parent Guarantor, (ii) any merger or consolidation with another company,

(iii) any acquisition of the majority of the assets or shares in another company, or (iv) any sale,

lease, transfer or other release of a majority of its properties or assets. The agreement has a term

of one year and is subject to automatic renewals unless otherwise terminated.

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DESCRIPTION OF THE NOTES

For purposes of this “Description of the Notes,” the term “Issuer” refers only to ListrindoCapital B.V., a private company with limited liability incorporated under the laws of theNetherlands and a wholly owned subsidiary of the Parent Guarantor, and any successor obligor onthe Notes, and the term “Parent Guarantor” refers only to PT Cikarang Listrindo Tbk., a companyincorporated with limited liability under the laws of Indonesia, and any successor thereto, and notto any of its Subsidiaries. The Parent Guarantor’s guarantee of the Notes is referred to as the“Parent Guarantee.” Each future Subsidiary of the Parent Guarantor that guarantees the Notes isreferred to as a “Subsidiary Guarantor,” and each such guarantee is referred to as a “SubsidiaryGuarantee.” As of the Original Issue Date, there are no Subsidiary Guarantors or SubsidiaryGuarantees. The term “Guarantor” refers to either the Parent Guarantor or a Subsidiary Guarantor,as the context requires, and the term “Guarantee” refers to either the Parent Guarantee or aSubsidiary Guarantee, as the context requires. The term “Guarantors” refers to the ParentGuarantor and the Subsidiary Guarantors collectively, and the term “Guarantees” refers to theParent Guarantee and the Subsidiary Guarantees collectively.

The Notes are to be issued under an Indenture, to be dated as of the Original Issue Date,among the Issuer, the Parent Guarantor, as guarantor, and The Bank of New York Mellon, astrustee (the “Trustee”). The Indenture will not incorporate or include, or be subject to, any of theprovisions of the U.S. Trust Indenture Act of 1939, as amended.

The following is a summary of certain provisions of the Indenture, the Notes and theGuarantees. This summary does not purport to be complete and is qualified in its entirety byreference to all of the provisions of the Indenture, the Notes and the Guarantees. It does notrestate those agreements in their entirety. Whenever particular sections or defined terms of theIndenture not otherwise defined herein are referred to, such sections or defined terms areincorporated herein by reference. Copies of the Indenture will be available on or after the OriginalIssue Date during normal office hours at the corporate trust office of the Trustee at 101 BarclayStreet, New York, NY 10286, USA.

Brief Description of the Notes

The Notes will:

• be general, unsecured obligations of the Issuer;

• be senior in right of payment to any existing and future obligations of the Issuerexpressly subordinated in right of payment to the Notes;

• rank at least pari passu in right of payment with all unsubordinated Indebtedness of theIssuer (subject to any priority rights of such unsubordinated Indebtedness pursuant toapplicable law); and

• be guaranteed by the Parent Guarantor on an unsubordinated basis.

The Issuer will initially issue US$550,000,000 in aggregate principal amount of the Notes,which will mature on September 14, 2026 unless earlier redeemed pursuant to the terms thereofand the Indenture. Subject to the covenants described below under “—Certain Covenants” andapplicable law, the Issuer may issue additional Notes (“Additional Notes”) under the Indenture.See “Further Issues.”

Interest

The Notes will bear interest at 4.95% per annum from the Original Issue Date or from themost recent interest payment date to which interest has been paid or duly provided for, payablesemi-annually in arrears on March 14 and September 14 of each year (each a “Notes InterestPayment Date”) commencing March 14, 2017. Interest on the Notes will be paid to Holders of

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record at the close of business on February 27 or August 30 immediately preceding a NotesInterest Payment Date (each a “Notes Record Date”), notwithstanding any transfer, exchange orcancellation thereof after a Notes Record Date and prior to the immediately following NotesInterest Payment Date. Interest on the Notes will be calculated on the basis of a 360-day yearcomprised of twelve 30-day months.

Payment of Notes

The aggregate principal amount of the Notes will be repaid in full on the maturity date.Except as otherwise provided in the Indenture, the Notes may not be redeemed prior to maturity.

In any case in which the date of the payment of principal of, premium, if any, or interest onthe Notes (including any payment to be made on any date fixed for redemption or purchase of anyNote) is not a Business Day in the relevant place of payment, then payment of principal, premium,if any, or interest need not be made in such place on such date but may be made on the nextsucceeding Business Day in such place. Any payment made on such Business Day will have thesame force and effect as if made on the date on which such payment is due, and no interest on theNotes will accrue for the period after such date. Interest on overdue principal and interest andAdditional Amounts (as defined under the caption “—Additional Amounts”), if any, will accrue ata rate that is 1% higher than the then applicable interest rate on the Notes.

The Notes will be issued only in fully registered form, without coupons, in minimumdenominations of US$200,000 of principal amount and integral multiples of US$1,000 in excessthereof. See “—Book-Entry; Delivery and Form.” No service charge will be made for anyregistration of transfer or exchange of Notes, but the Issuer may require payment of a sumsufficient to cover any transfer tax or other similar governmental charge payable in connectiontherewith.

All payments on the Notes will be made in U.S. Dollars in immediately available funds bythe Issuer at the office or agency of the Issuer maintained for that purpose in the Borough ofManhattan, The City of New York (which initially will be the corporate trust administration officeof The Bank of New York Mellon, currently located at 101 Barclay Street, New York, NY 10286,USA), and the Notes may be presented for registration of transfer or exchange at such office oragency; provided that, at the option of the Issuer, payment of interest may be made by checkmailed to the address of the Holders as such address appears in the Note register. Interest payableon the Notes held through DTC will be available to DTC participants (as defined herein) on theBusiness Day following payment thereof.

The Parent Guarantee

The Parent Guarantee will:

• be a general obligation of the Parent Guarantor;

• be effectively subordinated to secured obligations of the Parent Guarantor, to the extentof the value of the assets serving as security therefor;

• be effectively subordinated to all future obligations of any Subsidiary of the ParentGuarantor that is not a Subsidiary Guarantor;

• be senior in right of payment to all future obligations of the Parent Guarantor expresslysubordinated in right of payment to the Parent Guarantee; and

• rank at least pari passu in right of payment with all unsecured, unsubordinatedIndebtedness of the Parent Guarantor (subject to any priority rights of such unsecured,unsubordinated Indebtedness pursuant to applicable law).

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Under the Indenture, the Parent Guarantor will guarantee the due and punctual payment ofthe principal of, premium, if any, and interest on, and all other amounts payable under, the Notes.The Parent Guarantor will (1) agree that its obligations under the Parent Guarantee will beenforceable irrespective of any invalidity, irregularity or unenforceability of the Notes or theIndenture and (2) waive its right to require the Trustee to pursue or exhaust its legal or equitableremedies against the Issuer prior to exercising its rights under the Parent Guarantee. Moreover, ifat any time any amount paid under a Note or the Indenture is rescinded or must otherwise berestored, the rights of the Holders under the Parent Guarantee will be reinstated with respect tosuch payments as though such payment had not been made. All payments under the ParentGuarantee are required to be made in U.S. dollars.

Concurrently with the execution of the Parent Guarantee, the Parent Guarantor will also enterinto a Deed of Guarantee governed by the laws of Indonesia, which will provide for the ParentGuarantor’s guarantee of the due and punctual payment of the principal of, premium (if any) andinterest on, and all other amounts payable under, the Notes under the laws of Indonesia.

Release of the Parent Guarantee

The Parent Guarantee may be released in certain circumstances, including:

• upon repayment in full of the Notes; or

• upon a defeasance or satisfaction and discharge as described under“—Defeasance—Defeasance and Discharge” or “—Satisfaction and Discharge.”

Future Subsidiary Guarantees

On the Original Issue Date, the Issuer and its Wholly Owned Subsidiary, Signal Capital, willbe the only Subsidiaries of the Parent Guarantor and each will be a Restricted Subsidiary. TheParent Guarantor will cause each of its future Wholly Owned Restricted Subsidiaries (other than(i) the Issuer and Signal Capital, (ii) any such Restricted Subsidiary if the guarantee by suchRestricted Subsidiary of the payment of the Notes could reasonably be expected to give rise to orresult in any conflict with or violation of applicable law (or risk of criminal liability for theofficers, directors, commissioners, managers or shareholders of such Restricted Subsidiary) andsuch conflict, violation or criminal liability cannot be avoided or otherwise prevented throughmeasures reasonably available to the Parent Guarantor and (iii) any Finance Subsidiary for so longas it is and remains a Finance Subsidiary and any FS Subsidiary so long as it is and remains anFS Subsidiary), within 30 days of it becoming a Restricted Subsidiary, to execute and deliver tothe Trustee a supplemental indenture to the Indenture pursuant to which such Restricted Subsidiarywill guarantee the payment of the Notes. In addition, the Parent Guarantor may cause any futureRestricted Subsidiary to execute and deliver to the Trustee a supplemental indenture to theIndenture pursuant to which such Restricted Subsidiary will guarantee the payment of the Notes.

The Subsidiary Guarantee of each Subsidiary Guarantor will:

• be a general obligation of such Subsidiary Guarantor;

• be senior in right of payment to all future obligations of such Subsidiary Guarantorexpressly subordinated in right of payment to such Subsidiary Guarantee; and

• rank at least pari passu in right of payment with all unsecured, unsubordinatedIndebtedness of such Subsidiary Guarantor (subject to any priority rights of suchunsecured, unsubordinated Indebtedness pursuant to applicable law).

Under the Indenture, and any supplemental indenture to the Indenture, as applicable, each ofthe Subsidiary Guarantors will jointly and severally guarantee the due and punctual payment ofthe principal of, premium, if any, and interest on, and all other amounts payable under, the Notes.Each Subsidiary Guarantor will (1) agree that its obligations under the Subsidiary Guarantees will

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be enforceable irrespective of any invalidity, irregularity or unenforceability of the Notes or theIndenture and (2) waive its right to require the Trustee to pursue or exhaust its legal or equitableremedies against the Issuer prior to exercising its rights under the Subsidiary Guarantees.Moreover, if at any time any amount paid under a Note or the Indenture is rescinded or mustotherwise be restored, the rights of the Holders under the Subsidiary Guarantees will be reinstatedwith respect to such payments as though such payment had not been made. All payments under theSubsidiary Guarantees are required to be made in U.S. dollars.

Concurrently with the execution of the Subsidiary Guarantees, Subsidiary Guarantorsincorporated in the Republic of Indonesia will also enter into Deeds of Guarantee governed by thelaws of Indonesia, which will provide for such Subsidiary Guarantors’ guarantee of the due andpunctual payment of the principal of, premium (if any) and interest on, and all other amountspayable under, the Notes under the laws of Indonesia.

Under the Indenture, and any supplemental indenture to the Indenture, as applicable, eachSubsidiary Guarantee will be limited in an amount not to exceed the maximum amount that can beguaranteed by the applicable Subsidiary Guarantor without rendering the Subsidiary Guarantee, asit relates to such Subsidiary Guarantor, voidable under applicable law relating to fraudulentconveyance or fraudulent transfer or similar laws affecting the rights of creditors generally. If aSubsidiary Guarantee were to be rendered voidable, it could be subordinated by a court to allother indebtedness (including guarantees and other contingent liabilities) of the applicableSubsidiary Guarantor, and, depending on the amount of such indebtedness, a SubsidiaryGuarantor’s liability on its Subsidiary Guarantee could be reduced to zero.

The obligations of each Subsidiary Guarantor under its respective Subsidiary Guarantee maybe limited, or possibly invalid, under applicable laws. See “Risk Factors—Risks Relating to theNotes, the Parent Guarantee and the Offering Structure—Any future subsidiary guarantee may bechallenged under applicable financial assistance, insolvency or fraudulent transfer laws, whichcould impair the enforceability of such future subsidiary guarantee.”

Release of the Subsidiary Guarantees

A Subsidiary Guarantee given by a Subsidiary Guarantor may be released in certaincircumstances, including:

• upon repayment in full of the Notes;

• upon a defeasance or satisfaction and discharge as described under“—Defeasance—Defeasance and Discharge” or “—Satisfaction and Discharge”;

• upon the designation by the Parent Guarantor of such Subsidiary Guarantor as anUnrestricted Subsidiary in compliance with the terms of the Indenture; or

• upon the sale or other disposition (including by way of merger or consolidation) of theCapital Stock of such Subsidiary Guarantor in compliance with the terms of theIndenture (including the covenants under the captions “—Certain Covenants—Limitationon Asset Sales” and “—Consolidation, Merger and Sale of Assets”) resulting in suchSubsidiary Guarantor no longer being a Restricted Subsidiary, so long as suchSubsidiary Guarantor is simultaneously released from its obligations in respect of any ofthe Parent Guarantor’s other Indebtedness or any Indebtedness of any other RestrictedSubsidiary.

Under the circumstances described below under the caption “—Certain Covenants—Designation of Restricted and Unrestricted Subsidiaries”, the Parent Guarantor will be permitted todesignate certain of its future Subsidiaries as “Unrestricted Subsidiaries.” The Parent Guarantor’sUnrestricted Subsidiaries will generally not be subject to the restrictive covenants in theIndenture. The Parent Guarantor’s Unrestricted Subsidiaries will not guarantee the Notes.

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Further Issues

Subject to the covenants described below, the Issuer may, from time to time, without noticeto or the consent of the Holders, create and issue Additional Notes having the same terms andconditions as the Notes (including the benefit of the Guarantees) in all respects (or in all respectsexcept for the issue date, issue price and the first payment of interest on them and, to the extentnecessary, certain temporary securities law transfer restrictions) so that such Additional Notes maybe consolidated and form a single class with the previously outstanding Notes and vote together asone class on all matters with respect to the Notes; provided that such Additional Notes will not beissued under the same CUSIP, ISIN or Common Code as the Notes unless such Additional Notesare fungible with the Notes for U.S. federal income tax purposes; and provided further that theissuance of any such Additional Notes shall then be permitted under the covenant described underthe caption “—Certain Covenants—Limitation on Indebtedness and Preferred Stock.”

In addition, the issuance of any Additional Notes by the Issuer will be subject to thefollowing conditions:

(1) all obligations with respect to the Additional Notes shall be secured and guaranteedunder the Indenture, the Notes and the Guarantees to the same extent and on the samebasis as the Notes outstanding on the date the Additional Notes are issued; and

(2) the Parent Guarantor and the Issuer have delivered to the Trustee an Officers’Certificate, in form and substance satisfactory to the Trustee, confirming that theissuance of the Additional Notes complies with the Indenture.

Optional Redemption

At any time on or after September 14, 2021, the Issuer may redeem the Notes, in whole or inpart, at a redemption price (expressed as a percentage of principal amount) set forth below, plusaccrued and unpaid interest, if any, to the redemption date, if redeemed during the 12-monthperiod commencing on September 14 of any year set forth below:

Period Redemption Price

2021 ................................................................................................................................................. 102.475%

2022 ................................................................................................................................................. 101.650%

2023 ................................................................................................................................................. 100.825%

2024 and thereafter........................................................................................................................... 100.0000%

At any time prior to September 14, 2020, the Issuer may redeem up to 35% of the aggregateprincipal amount of the Notes with the Net Cash Proceeds of one or more Equity Offerings at aredemption price of 104.95% of the principal amount of the Notes, plus accrued and unpaidinterest, if any, to (but not including) the redemption date; provided that at least 65% of theaggregate principal amount of the Notes originally issued on the Original Issue Date remainsoutstanding after each such redemption and any such redemption takes place within 60 days afterthe closing of the related Equity Offering. Notice of any redemption upon any Equity Offeringmay be given prior to the completion of such Equity Offering in connection thereof, and any suchnotice of redemption may, at the Issuer’s discretion, be conditioned on the completion of suchEquity Offering.

At any time and from time to time prior to September 14, 2021, the Issuer may at its optionredeem the Notes, in whole or in part, at a redemption price equal to 100% of the principalamount of the Notes plus the Applicable Premium as of, and accrued and unpaid interest, if any,to (but not including), the redemption date.

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Selection and Notice

The Issuer will give not less than 30 days’ nor more than 60 days’ notice of any redemption.If less than all of the Notes are to be redeemed, the Notes for redemption will be selected asfollows:

• if the Notes are listed on any securities exchange, in compliance with the requirementsof the principal securities exchange on which the Notes are then traded or if the Notesare held through the clearing systems, in compliance with the requirements of theclearing systems; or

• if the Notes are not listed on any securities exchange and are not held through theclearing systems, on a pro rata basis, by lot or by such other method as the Trustee inits sole discretion deems fair and appropriate.

A Note of US$200,000 in principal amount or less will not be redeemed in part. If any Noteis to be redeemed in part only, the notice of redemption relating to such Note will state theportion of the principal amount to be redeemed. A new Note in principal amount equal to theunredeemed portion will be issued upon cancellation of the original Note. On and after theredemption date, interest will cease to accrue on Notes or portions of them called for redemption.

Repurchase of Notes Upon a Change of Control Triggering Event

Not later than 30 days following a Change of Control Triggering Event, the Issuer or theParent Guarantor will make an Offer to Purchase all outstanding Notes (a “Change of ControlOffer”) at a purchase price equal to 101% of the principal amount thereof plus accrued and unpaidinterest, if any, to (but not including) the Offer to Purchase Payment Date.

If the Issuer or the Parent Guarantor is unable to repay (or cause to be repaid) all of theIndebtedness, if any, that would prohibit repurchase of the Notes or is unable to obtain therequisite consents of the holders of such Indebtedness, or terminate any agreements or instrumentsthat would otherwise prohibit a Change of Control Offer, it will be prohibited from purchasing theNotes. In that case, the failure of either the Issuer or the Parent Guarantor to purchase tenderedNotes will constitute an Event of Default under the Indenture.

The Parent Guarantor and the Issuer will not be required to make a Change of Control Offerfollowing a Change of Control Triggering Event if a third party makes the Change of ControlOffer in the manner, at the times and otherwise in compliance with the requirements set forth inthe Indenture applicable to a Change of Control Offer to be made by the Parent Guarantor or theIssuer and such third party purchases all Notes validly tendered and not withdrawn under suchChange of Control Offer.

Future debt of the Issuer or the Parent Guarantor may (i) prohibit the Issuer or the ParentGuarantor from purchasing Notes in the event of a Change of Control Triggering Event, (ii)provide that a Change of Control Triggering Event is a default or (iii) require the repurchase ofsuch debt upon a Change of Control Triggering Event. Moreover, the exercise by Holders of theirright to require the Issuer or the Parent Guarantor to purchase the Notes could cause a defaultunder other Indebtedness, even if the Change of Control Triggering Event itself does not, due tothe financial effect of the purchase on the Issuer or the Parent Guarantor. The ability of the Issueror the Parent Guarantor to pay cash to Holders following the occurrence of a Change of ControlTriggering Event may be limited by the Issuer’s or the Parent Guarantor’s then existing financialresources. There can be no assurance that sufficient funds will be available when necessary tomake the required purchase of the Notes. See “Risk Factors—Risks Relating to the Notes, theParent Guarantee and the Offering Structure—The Issuer may not have the ability to raise thefunds necessary to finance an offer to repurchase your Notes upon the occurrence of certain eventsconstituting a change of control as required by the Indenture.”

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The phrase “all or substantially all,” as used with respect to the assets of the ParentGuarantor or the Issuer in the definition of “Change of Control,” will likely be interpreted underapplicable law of the relevant jurisdictions and its meaning would depend on particular facts andcircumstances. As a result, there may be a degree of uncertainty in ascertaining whether a sale ortransfer of “all or substantially all” the assets of the Parent Guarantor or the Issuer has occurred.

The Trustee shall not be required to take any steps to ascertain whether a Change of ControlTriggering Event or any event which could lead to the occurrence of a Change of ControlTriggering Event has occurred and shall not be liable to any person for any failure to do so.

Except as described above with respect to a Change of Control Triggering Event, theIndenture does not contain provisions that permit the Holders to require that the Issuer or theParent Guarantor purchase or redeem the Notes in the event of a takeover, recapitalization orsimilar transaction.

Mandatory Redemption; Sinking Fund

The Issuer is not required to make mandatory redemptions or sinking fund payments withrespect to the Notes.

Open Market Purchases

The Parent Guarantor, the Issuer and any other Restricted Subsidiary may purchase Notes bymeans other than a redemption, whether by tender offer, open market purchases, negotiatedtransactions or otherwise, in accordance with applicable securities laws and regulations, so long assuch acquisition does not violate the terms of the Indenture. The Parent Guarantor or the Issuerwill notify the Registrar and the Transfer Agent in writing at the completion of any such openmarket purchases.

Additional Amounts

All payments of principal of, and premium, if any, and interest on the Notes and allpayments under the Guarantees will be made without withholding or deduction for, or on accountof, any present or future taxes, duties, assessments or governmental charges of whatever natureimposed or levied by or within any jurisdiction in which the Issuer, any applicable Guarantor orSurviving Person (as defined under the caption “—Consolidation, Merger and Sale of Assets”), isorganized or resident for tax purposes (or any political subdivision or taxing authority thereof ortherein) (each, as applicable, a “Relevant Jurisdiction”) or through which payment is made, unlesssuch withholding or deduction is required by law or by regulation or governmental policy havingthe force of law. In such event, the Issuer, the applicable Guarantor or Surviving Person, as thecase may be, will make such deduction or withholding, make payment of the amount so withheldto the appropriate governmental authority and will pay such additional amounts (“AdditionalAmounts”) as will result in receipt by the Holder of such amounts as would have been received bysuch Holder had no such withholding or deduction been required, provided that no AdditionalAmounts will be payable:

(a) for or on account of:

(i) any tax, duty, assessment or other governmental charge that would not have beenimposed but for:

(A) the existence of any present or former connection between the Holder orbeneficial owner of such Note or Guarantee, as the case may be, and theRelevant Jurisdiction or jurisdiction through which payment is madeincluding, without limitation, such Holder or beneficial owner being orhaving been a citizen or resident of such Relevant Jurisdiction or jurisdictionthrough which payment is made or treated as a resident thereof or being or

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having been physically present or engaged in a trade or business therein orhaving or having had a permanent establishment therein, other than merelyholding such Note, the receipt of payments thereunder or under the Guaranteeor enforcing payment under the Note or the Guarantee;

(B) the presentation of such Note (where presentation is required) more than 30days after the later of the date on which the payment of the principal of,premium, if any, or interest on, such Note became due and payable pursuantto the terms thereof or was made or duly provided for, except to the extentthat the Holder thereof would have been entitled to such Additional Amountsif it had presented such Note for payment on any date within such 30-dayperiod;

(C) the failure of the Holder or beneficial owner to comply with a timely requestof the Issuer, any Guarantor or Surviving Person, addressed to the Holder, toprovide information to the Issuer, such Guarantor or Surviving Personconcerning such Holder’s or beneficial owner’s nationality, residence, identityor connection with any Relevant Jurisdiction or jurisdiction through whichpayment is made, if and to the extent that due and timely compliance withsuch request would have reduced or eliminated any withholding or deductionas to which Additional Amounts would have otherwise been payable to suchHolder; or

(D) the presentation of such Note (where presentation is required) for payment inthe Relevant Jurisdiction or jurisdiction through which payment is made,unless such Note could not have been presented for payment elsewhere;

(ii) any estate, inheritance, gift, sale, transfer, excise or personal property or similartax, assessment or other governmental charge;

(iii) any tax, duty, assessment or other governmental charge which is payable other than(a) by deduction or withholding from payments of principal of or interest or anypremium on the Note or payments under the Guarantees, or (b) by direct paymentby the Issuer or applicable Guarantor in respect of claims made against the Issueror the applicable Guarantor;

(iv) any withholding or deduction required under Sections 1471 to 1474 of the U.S.Internal Revenue Code of 1986, as amended (the “Code”) (or any amended orsuccessor versions of such Sections) (“FATCA”), any regulations or other officialguidance thereunder, any intergovernmental agreement entered into in connectionwith FATCA, or any law, regulation or other official guidance enacted in anyjurisdiction implementing FATCA or an intergovernmental agreement, or anyagreement with the U.S. Internal Revenue Service under FATCA; and

(v) any combination of taxes, duties, assessments or other governmental chargesreferred to in the preceding clauses (i), (ii), (iii) and (iv); or

(b) with respect to any payment of the principal of, or premium, if any, or interest on, suchNote or any payment under any Guarantee to such Holder, if the Holder is a fiduciary,partnership or person other than the sole beneficial owner of any payment to the extentthat such payment would be required to be included in the income under the laws of aRelevant Jurisdiction or jurisdiction through which payment is made, for tax purposes,of a beneficiary or settlor with respect to the fiduciary, or a member of that partnershipor a beneficial owner who would not have been entitled to such Additional Amounts hadthat beneficiary, settlor, partner, or beneficial owner been the Holder thereof.

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As a result of these provisions, there are circumstances in which taxes could be withheld ordeducted but Additional Amounts would not be payable to some or all beneficial owners of Notes.

Whenever there is mentioned in any context the payment of principal, premium or interest inrespect of any Note or under any Guarantee, such mention will be deemed to include payment ofAdditional Amounts provided for in the Indenture to the extent that, in such context, AdditionalAmounts are, were or would be payable in respect thereof.

Redemption for Taxation Reasons

The Notes may be redeemed, at the option of the Issuer, the Parent Guarantor or a SurvivingPerson, as a whole but not in part, upon giving not less than 30 days’ nor more than 60 days’notice to the Holders and the Trustee (which notice will be irrevocable), at a redemption priceequal to 100% of the principal amount thereof, together with accrued and unpaid interest(including any Additional Amounts), if any, to (but not including) the date fixed by the Issuer, theParent Guarantor or the Surviving Person, as the case may be, for redemption (the “TaxRedemption Date”) if, as a result of:

(1) any change in, or amendment to, the laws or any regulations or rulings promulgatedthereunder of a Relevant Jurisdiction affecting taxation; or

(2) any change in, or amendment to, an official position regarding the application orinterpretation of such laws, regulations or rulings (including a holding, judgment ororder by a court of competent jurisdiction),

which change or amendment becomes effective on or after the Original Issue Date with respect toany payment due or to become due under the Notes, the Indenture, the Intercompany Loan or aGuarantee (or, in the case of a Surviving Person or future Subsidiary Guarantor organized orresident in a jurisdiction that is not a Relevant Jurisdiction on the Original Issue Date, the datesuch Person became a Surviving Person or Guarantor, as the case may be), the Issuer, a Guarantoror the Surviving Person, as the case may be, is, or on the next Notes Interest Payment Date wouldbe, required to pay Additional Amounts (or, in the case of any payment with respect to theIntercompany Loan, would be required to withhold or deduct any taxes, duties, assessments orgovernmental charges of whatever nature), and such requirement cannot be avoided by takingreasonable measures by the Issuer, a Guarantor or the Surviving Person, as the case may be;provided that changing the jurisdiction of the Issuer, a Guarantor or the Surviving Person is not areasonable measure for the purposes of this section; provided further that no such notice ofredemption will be given earlier than 90 days prior to the earliest date on which the Issuer, aGuarantor or the Surviving Person, as the case may be, would be obligated to pay such AdditionalAmounts (or, in the case of the Intercompany Loan, withhold or deduct such taxes, duties,assessments or governmental charges) if a payment in respect of the Notes (or on theIntercompany Loan, as applicable) were then due; provided further that where any suchrequirement to pay Additional Amounts (or withhold or deduct an amount from any payment withrespect to the Intercompany Loan) is due to taxes of the Republic of Indonesia (or any politicalsubdivision or taxing authority thereof or therein), the Issuer, the Parent Guarantor or theSurviving Person shall be permitted to redeem the Notes in accordance with the provisions aboveonly if the rate of withholding or deduction in respect of which Additional Amounts are required(or in respect of which withholding is required on payments on the Intercompany Loan) is inexcess of 20.0%.

Prior to the mailing of any notice of redemption of the Notes pursuant to the foregoing, theIssuer or a Guarantor, as the case may be, will deliver to the Trustee:

(1) an Officer’s Certificate stating that such change or amendment referred to in the priorparagraph has occurred, and describing the facts related thereto and stating that suchrequirement cannot be avoided by the Issuer or such Guarantor, as the case may be,taking reasonable measures available to it; and

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(2) an Opinion of Counsel stating that the requirement to pay such Additional Amountsresults from such change or amendment referred to in the prior paragraph.

The Trustee will accept such certificate and opinion as sufficient evidence of the satisfactionof the conditions precedent described above, and it will be conclusive and binding on the Holders.The Trustee has no duty to investigate or verify such certificate and opinion.

Any Notes that are redeemed will be cancelled.

Certain Covenants

Set forth below are summaries of certain covenants contained in the Indenture.

Limitation on Indebtedness and Preferred Stock

(a) The Parent Guarantor will not, and will not permit any Restricted Subsidiary to, Incurany Indebtedness (including Acquired Indebtedness) or Preferred Stock (other thanDisqualified Stock of Restricted Subsidiaries held by the Parent Guarantor, so long as itis so held); provided that the Parent Guarantor, the Issuer, any Subsidiary Guarantor andany Finance Subsidiary may Incur Indebtedness (including Acquired Indebtedness) if,after giving effect to the Incurrence of such Indebtedness and the receipt and theapplication of the proceeds therefrom, the Fixed Charge Coverage Ratio would be notless than 2.5 to 1.0.

(b) Notwithstanding the foregoing, the Parent Guarantor and, to the extent provided below,the Issuer, any Subsidiary Guarantor or any other Restricted Subsidiary, may Incur eachand all of the following (“Permitted Indebtedness”):

(1) Indebtedness of the Issuer under the Notes (excluding any Additional Notes) andof the Parent Guarantor under the Parent Guarantee and the Intercompany Loan;

(2) Indebtedness of the Parent Guarantor or any Restricted Subsidiary outstanding onthe Original Issue Date, excluding Indebtedness permitted under clause (b)(3)below;

(3) Indebtedness of the Parent Guarantor, the Issuer or any Restricted Subsidiary owedto the Parent Guarantor, the Issuer or any Restricted Subsidiary; provided that (x)any event which results in any such Restricted Subsidiary ceasing to be aRestricted Subsidiary or any subsequent transfer of such Indebtedness (other thanto the Parent Guarantor, the Issuer or any Restricted Subsidiary) will be deemed,in each case, to constitute an Incurrence of such Indebtedness not permitted by thisclause (b)(3), (y) if the Parent Guarantor is the obligor on such Indebtedness, suchIndebtedness must be unsecured and expressly be subordinated in right of paymentto the Parent Guarantee and (z) if a Subsidiary Guarantor is the obligor on suchIndebtedness and a Restricted Subsidiary that is not a Subsidiary Guarantor is theobligee, such Indebtedness must be unsecured and expressly subordinated in rightof payment to the Subsidiary Guarantee of such Subsidiary Guarantor;

(4) Indebtedness of the Parent Guarantor, the Issuer or any Restricted Subsidiary(“Permitted Refinancing Indebtedness”) issued in exchange for, or the net proceedsof which are used to refinance or refund, replace, exchange, renew, repay, defease,discharge or extend (collectively, “refinance” and “refinances” and “refinanced”shall have a correlative meaning), then-outstanding Indebtedness (or Indebtednessrepaid substantially concurrently with but in any case before the Incurrence ofsuch Permitted Refinancing Indebtedness) Incurred under clause (a) or clause(b)(1), (b)(2), (b)(4), (b)(10), (b)(12) or (b)(13) of this covenant and anyrefinancings thereof in an amount not to exceed the amount so refinanced orrefunded (plus premiums, accrued interest, fees and expenses); provided that (A)

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Indebtedness the proceeds of which are used to refinance or refund the Notes orIndebtedness that is pari passu with, or subordinated in right of payment to, theNotes or a Guarantee will only be permitted under this clause (b)(4) if (x) in casethe Notes are refinanced in part or the Indebtedness to be refinanced is pari passuwith the Notes or a Guarantee, such new Indebtedness, by its terms or by theterms of any agreement or instrument pursuant to which such new Indebtedness isoutstanding, is expressly made pari passu with the remaining Notes or suchGuarantee, or (y) in case the Indebtedness to be refinanced is subordinated in rightof payment to the Notes or a Guarantee, such new Indebtedness, by its terms or bythe terms of any agreement or instrument pursuant to which such new Indebtednessis issued or remains outstanding, is expressly made subordinate in right of paymentto the Notes or such Guarantee at least to the extent that the Indebtedness to berefinanced is subordinated to the Notes or such Guarantee, (B) such newIndebtedness, determined as of the date of Incurrence of such new Indebtedness,does not mature prior to the Stated Maturity of the Indebtedness to be refinancedor refunded, and the Average Life of such new Indebtedness is at least equal to theremaining Average Life of the Indebtedness to be refinanced or refunded, (C) in noevent may Indebtedness of the Issuer or any Guarantor be refinanced pursuant tothis clause by means of any Indebtedness of any Restricted Subsidiary (other thanthe Issuer or any Finance Subsidiary) that is not a Subsidiary Guarantor and (D) inno event may unsecured Indebtedness of the Issuer or any Guarantor be refinancedpursuant to this clause with secured Indebtedness;

(5) Indebtedness Incurred by the Parent Guarantor or any Restricted Subsidiarypursuant to Hedging Obligations for the purpose of protecting the Parent Guarantoror any such Restricted Subsidiary from fluctuations in interest rates, commodityprices or currencies and not for speculation;

(6) Indebtedness arising from agreements providing for indemnification, adjustment ofpurchase price or similar obligations, or from guarantees or letters of credit, suretybonds or performance bonds securing any obligation of the Parent Guarantor orany Restricted Subsidiary pursuant to such agreements, in any case, incurred inconnection with the disposition of any business, assets or Capital Stock of aRestricted Subsidiary, other than guarantees of Indebtedness incurred by anyPerson acquiring all or any portion of such business, assets or Capital Stock of aRestricted Subsidiary for the purpose of financing such acquisition; provided thatthe maximum aggregate liability in respect of all such Indebtedness incurred inconnection with a disposition of any business, assets or Capital Stock of aRestricted Subsidiary shall at no time exceed the gross proceeds actually receivedby the Parent Guarantor or any Restricted Subsidiary in connection with suchdisposition;

(7) Indebtedness Incurred by the Parent Guarantor or any Restricted Subsidiary arisingfrom the honouring by a bank or other financial institution of a check, draft orsimilar instrument drawn against insufficient funds in the ordinary course ofbusiness; provided, however, that such Indebtedness is repaid in full or otherwiseextinguished within five Business Days of Incurrence;

(8) Indebtedness Incurred by the Parent Guarantor or any Restricted Subsidiaryconstituting reimbursement obligations with respect to workers’ compensationclaims or self-insurance obligations or bid, performance or surety bonds or similarinstruments (in each case other than for an obligation for borrowed money);

(9) Indebtedness Incurred by the Parent Guarantor or any Restricted Subsidiaryconstituting reimbursement obligations with respect to letters of credit or bankguarantees issued in the ordinary course of business, including for capacity

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expansion purposes, to the extent that such letters of credit or bank guarantees arenot drawn upon or, if drawn upon, to the extent such drawing is reimbursed nolater than 90 days following receipt by the Parent Guarantor or such RestrictedSubsidiary of a demand for reimbursement;

(10) Indebtedness of the Parent Guarantor or any Restricted Subsidiary (other thanSignal Capital or any FS Subsidiary) in an aggregate principal amount at any timeoutstanding (together with refinancings thereof) not to exceed US$20.0 million (orthe Dollar Equivalent thereof);

(11) any Shareholder Subordinated Loan;

(12) Indebtedness of the Parent Guarantor or any Restricted Subsidiary (other thanSignal Capital or any FS Subsidiary) with a maturity of one year or less used bythe Parent Guarantor or such Restricted Subsidiary for working capital purposes inan aggregate principal amount at any time outstanding (together with refinancingsthereof) not to exceed the greater of (i) US$100.0 million (or the DollarEquivalent thereof) or (ii) 7.5% of Total Assets as of the date of Incurrence ofsuch Indebtedness;

(13) Indebtedness Incurred by the Parent Guarantor or any Restricted Subsidiary (otherthan Signal Capital or any FS Subsidiary) represented by Capitalized LeaseObligations, mortgage financings or purchase money obligations in the ordinarycourse of business after the Original Issue Date to finance all or any part of thepurchase price or cost of construction, installation or improvement of property(real or personal), plant, equipment or other assets (including through theacquisition of Capital Stock of any Person that owns property, plant, equipment orother assets which will, upon such acquisition, become a Restricted Subsidiary) tobe used in the Permitted Business; provided that (i) such Indebtedness shall beIncurred no later than 180 days after the acquisition, construction, installation orimprovement of such property (real or personal), plant, equipment or other assetsand (ii) the aggregate principal amount of such Indebtedness at any timeoutstanding (together with refinancings thereof) shall not exceed an amount equalto 25% of Total Assets as of the date of Incurrence of such Indebtedness;

(14) guarantees by any Guarantor of Indebtedness of any other Guarantor, the Issuer ora Finance Subsidiary that was permitted to be Incurred by another provision of thiscovenant; provided that if the Indebtedness being guaranteed is subordinated to orpari passu with the Notes or a Guarantee, then the guarantee shall be subordinatedor pari passu, as applicable, to the same extent as the Indebtedness guaranteed;

(15) Indebtedness Incurred by a Finance Subsidiary that is guaranteed by any Guarantorto the extent such Guarantor is permitted to Incur such Indebtedness under thiscovenant (other than under clause (b)(14) of this covenant); and

(16) guarantees in the ordinary course of business by the Parent Guarantor of anyobligation of any of its suppliers to pay the deferred and unpaid purchase price ofgoods or equipment pursuant to agreements to purchase or pay for goods orequipment to be used in the Permitted Business; provided that any such obligationis due and paid within 180 days after such goods or equipment are acquired bysuch supplier.

(c) For purposes of determining compliance with this “—Limitation on Indebtedness andPreferred Stock” covenant, in the event that an item of Indebtedness meets the criteriaof more than one of the types of Indebtedness described above, including under the

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proviso in the first paragraph of this covenant, the Parent Guarantor, in its solediscretion, will classify, and from time to time may reclassify, such item ofIndebtedness and only be required to include the amount of such Indebtedness as one ofsuch types.

(d) The accrual of interest, the accretion or amortization of original issue discount, thepayment of interest on any Indebtedness in the form of additional Indebtedness with thesame terms, the reclassification of Preferred Stock as Indebtedness due to a change inaccounting principles, and the payment of dividends on Disqualified Stock in the formof additional shares of the same class of Disqualified Stock will not be deemed to be anincurrence of Indebtedness; provided, in each such case, that the amount of any suchaccrual, accretion or payment is included in the Consolidated Fixed Charges of theParent Guarantor as accrued.

(e) Notwithstanding any other provision of this covenant, the maximum amount ofIndebtedness that the Parent Guarantor or any Restricted Subsidiary may incur pursuantto this covenant shall not be deemed to be exceeded solely as a result of fluctuations inexchange rates or currency values. For purposes of determining compliance with anyU.S. dollar-denominated restriction on the Incurrence of Indebtedness, the DollarEquivalent principal amount of Indebtedness denominated in a foreign currency shall beutilized, calculated based on the relevant currency exchange rate in effect on the datesuch Indebtedness was Incurred (or first committed, in the case of revolving creditdebt); provided that if such Indebtedness is incurred to refinance other Indebtednessdenominated in a foreign currency, and such refinancing would cause the applicableDollar Equivalent restriction to be exceeded if calculated at the relevant currencyexchange rate in effect on the date of such refinancing, such Dollar Equivalentrestriction shall be deemed not to have been exceeded so long as the principal amountof such refinancing Indebtedness does not exceed the principal amount of suchIndebtedness being refinanced (plus premiums, accrued interest, fees and expenses). Theprincipal amount of any Indebtedness incurred to refinance other Indebtedness, ifincurred in a different currency from the Indebtedness being refinanced, shall becalculated based on the currency exchange rate applicable to the currencies in whichsuch respective Indebtedness is denominated that is in effect on the date of suchrefinancing.

Limitation on Restricted Payments

The Parent Guarantor will not, and will not permit any Restricted Subsidiary to, directly orindirectly (the payments or any other actions described in clauses (1) through (4) below beingcollectively referred to as “Restricted Payments”):

(1) declare or pay any dividend or make any distribution on or with respect to the ParentGuarantor’s or any Restricted Subsidiary’s Capital Stock (other than dividends ordistributions payable solely in shares of the Parent Guarantor’s Capital Stock (otherthan Disqualified Stock or Preferred Stock) or in options, warrants or other rights toacquire shares of such Capital Stock) held by Persons other than the Issuer, the ParentGuarantor or any Restricted Subsidiary;

(2) purchase, call for redemption or redeem, retire or otherwise acquire for value any sharesof Capital Stock of the Parent Guarantor, any Restricted Subsidiary or any direct orindirect parent of the Parent Guarantor (including options, warrants or other rights toacquire such shares of Capital Stock) held by any Persons other than the Issuer, theParent Guarantor or any Restricted Subsidiary;

(3) make any voluntary or optional principal payment, or voluntary or optional redemption,repurchase, defeasance, or other acquisition or retirement for value, of Indebtedness that

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is subordinated in right of payment to the Notes or any Guarantee (excluding (i) theIntercompany Loan or (ii) any intercompany Indebtedness between or among the ParentGuarantor and any Restricted Subsidiary or between or among any RestrictedSubsidiaries) or make any payment in respect of any Shareholder Subordinated Loan; or

(4) make any Investment, other than a Permitted Investment,

if, at the time of, and after giving effect to, the proposed Restricted Payment:

(A) a Default has occurred and is continuing or would occur as a result of suchRestricted Payment;

(B) the Parent Guarantor could not Incur at least US$1.00 of Indebtedness under theproviso in clause (a) of the covenant under the caption “—Limitation onIndebtedness and Preferred Stock”; or

(C) such Restricted Payment, together with the aggregate amount of all RestrictedPayments made by the Parent Guarantor and its Restricted Subsidiaries after theMeasurement Date, would exceed the sum of:

(1) 50% of the aggregate amount of the Consolidated Net Income of the ParentGuarantor (or, if the Consolidated Net Income is a loss, minus 100% of theamount of such loss) accrued on a cumulative basis during the period (takenas one accounting period) beginning on the first day of the fiscal quarter inwhich the Measurement Date occurred and ending on the last day of theParent Guarantor’s most recently ended fiscal quarter for which consolidatedfinancial statements of the Parent Guarantor (which the Parent Guarantor willuse its reasonable best efforts to compile in a timely manner) are availableand have been provided to the Trustee at the time of such RestrictedPayment; plus

(2) 100% of the aggregate Net Cash Proceeds received by the Parent Guarantorafter the Measurement Date as a capital contribution to its common equity orfrom the issuance and sale of its Capital Stock (other than DisqualifiedStock) to a Person who is not a Subsidiary of the Parent Guarantor, includingany such Net Cash Proceeds received upon (x) the conversion of anyIndebtedness (other than Subordinated Indebtedness) of the Parent Guarantorinto Capital Stock (other than Disqualified Stock) of the Parent Guarantor, or(y) the exercise by a Person who is not a Subsidiary of the Parent Guarantorof any options, warrants or other rights to acquire Capital Stock of the ParentGuarantor (other than Disqualified Stock), in each case after deducting theamount of any such Net Cash Proceeds used to redeem, repurchase, defeaseor otherwise acquire or retire for value any Subordinated Indebtedness orCapital Stock of the Parent Guarantor (provided that the amount of any suchNet Cash Proceeds so deducted shall not be treated as a Restricted Payment);plus

(3) an amount equal to the net reduction in Investments (other than reductions inPermitted Investments) that were made after the Measurement Date in anyPerson resulting from (a) payments of interest on Indebtedness, dividends orrepayments of loans or advances by such Person, in each case to the ParentGuarantor or any Restricted Subsidiary or from the Net Cash Proceeds fromthe sale of any such Investment (except, in each case, to the extent any suchpayment or proceeds are included in the calculation of Consolidated Net

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Income), or (b) from redesignations of Unrestricted Subsidiaries as RestrictedSubsidiaries, not to exceed, in each case, the amount of Investmentspreviously made by the Parent Guarantor or a Restricted Subsidiary after theMeasurement Date in any such Person.

The foregoing provision will not be violated by reason of:

(1) the payment of any dividend or redemption of any Capital Stock within 60 days afterthe related date of declaration or call for redemption if, at said date of declaration orcall for redemption, such payment or redemption would comply with the precedingparagraph;

(2) the redemption, repurchase, defeasance or other acquisition or retirement for value ofSubordinated Indebtedness with the proceeds of, or in exchange for, a substantiallyconcurrent Incurrence of Permitted Refinancing Indebtedness;

(3) the redemption, repurchase, defeasance or other acquisition or retirement for value ofSubordinated Indebtedness or Capital Stock of the Parent Guarantor (or options,warrants or other rights to acquire such Capital Stock) in exchange for, or out of theNet Cash Proceeds of a substantially concurrent capital contribution or sale (other thana capital contribution by or sale to a Subsidiary of the Parent Guarantor) of, shares ofthe Capital Stock (other than Disqualified Stock) of the Parent Guarantor (or options,warrants or other rights to acquire such Capital Stock); provided that (x) such options,warrants or other rights are not redeemable at the option of the holder, or required to beredeemed, prior to the Stated Maturity of the Notes and (y) the amount of any such NetCash Proceeds that are utilized for any such Restricted Payment will be excluded fromclause (C)(2) of the preceding paragraph;

(4) (x) the payment of any dividends or distributions declared, paid or made by a RestrictedSubsidiary to or (y) the redemption, repurchase, defeasance or other acquisition by aRestricted Subsidiary of any shares of its Capital Stock (including options, warrants orother rights to acquire such shares of Capital Stock) from, all holders of any class ofCapital Stock of such Restricted Subsidiary, a majority of which is held, directly orindirectly through Restricted Subsidiaries, by the Parent Guarantor, in each case on apro rata basis or on a basis more favorable to the Parent Guarantor;

(5) the redemption, purchase or other acquisition or retirement for value of any CapitalStock of the Parent Guarantor (or options, warrants or other rights to acquire suchCapital Stock) held by any future, current or former officer, director or employee of theParent Guarantor or any direct or indirect parent entities or Restricted Subsidiaries (orany such Person’s assigns, estates or heirs) pursuant to the repurchase provisions underany equity stock option or stock purchase agreement or other agreements to compensateemployees and approved by the Board of Directors; provided that the aggregate pricepaid for all such redeemed, purchased, acquired or retired Capital Stock will not exceedUS$2.0 million (or the Dollar Equivalent thereof) in any fiscal year;

(6) (i) the repurchase of Capital Stock of the Parent Guarantor deemed to occur upon theexercise of equity stock options, warrants or other rights to purchase Capital Stock ofthe Parent Guarantor if such Capital Stock represents all or a portion of the exerciseprice thereof and (ii) repurchases of Capital Stock of the Parent Guarantor deemed tooccur upon the withholding of a portion of such Capital Stock granted or awarded to adirector, employee or consultant to pay for the taxes payable by such director, employeeor consultant upon such grant or award;

(7) payments by the Parent Guarantor of cash in lieu of the issuance of fractional sharesupon (i) the exercise of equity stock options or warrants, (ii) the conversion or

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exchange of Capital Stock of the Parent Guarantor or (iii) stock dividends, splits orbusiness combinations; provided, however, that any such cash payment by the ParentGuarantor shall not be for the purpose of evading this “—Limitation on RestrictedPayments” covenant (as determined in good faith by the Board of Directors);

(8) any redemption, purchase or other acquisition or retirement for value of DisqualifiedStock of the Parent Guarantor or preferred stock of a Subsidiary Guarantor made byexchange for or out of the proceeds of the substantially concurrent sale of DisqualifiedStock of the Parent Guarantor or preferred stock of a Subsidiary Guarantor, as the casemay be, that, in each case, is permitted to be incurred pursuant to the covenantdescribed under “—Limitation on Indebtedness and Preferred Stock” and that in eachcase constitutes Permitted Refinancing Indebtedness;

(9) any Restricted Payments; provided that, immediately after giving pro forma effectthereto, the Fixed Charge Coverage Ratio would not be less than 2.5 to 1.0 and theLeverage Ratio would not be greater than 3.75 to 1.0; or

(10) Restricted Payments in an aggregate amount, when taken together with all otherRestricted Payments made pursuant to this clause (10), not to exceed US$10.0 million(or the Dollar Equivalent thereof) since the Original Issue Date;

provided that in the case of clause (2), (3), (9) or (10) above, no Default will have occurred andbe continuing or would occur as a consequence of the actions or payments set forth therein.

Each Restricted Payment permitted pursuant to the preceding paragraph (other than RestrictedPayments pursuant to clauses (1) and (9), which will be included in calculating whether theconditions of clause (C) of the first paragraph of this “—Limitation on Restricted Payments”covenant have been met with respect to any subsequent Restricted Payments) and the Net CashProceeds from any capital contribution or sale of Capital Stock referred to in clause (3) of thepreceding paragraph will be excluded in calculating whether the conditions of clause (C) of thefirst paragraph of this “—Limitation on Restricted Payments” covenant have been met with respectto any subsequent Restricted Payments.

The amount of any Restricted Payments (other than cash) will be the Fair Market Value onthe date of the Restricted Payment of the asset(s) or securities proposed to be transferred or issuedby the Parent Guarantor or the Restricted Subsidiary, as the case may be, pursuant to theRestricted Payment. The Board of Directors’ determination of the Fair Market Value of any suchassets or securities (other than cash) must be based upon an opinion or appraisal issued by anaccounting, appraisal or investment banking firm of recognized international standing if the FairMarket Value exceeds US$20.0 million (or the Dollar Equivalent thereof).

As of June 30, 2016, the total amount available for Restricted Payments pursuant to clause(C) of the first paragraph of this “—Limitation on Restricted Payments” covenant wasapproximately US$286.6 million.

Limitation on Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries

(a) Except as provided below, the Parent Guarantor will not, and will not permit anyRestricted Subsidiary to, create or otherwise cause or permit to exist or becomeeffective any encumbrance or restriction of any kind on the ability of any RestrictedSubsidiary to:

(1) pay dividends or make any other distributions on any Capital Stock of suchRestricted Subsidiary owned by the Parent Guarantor or any other RestrictedSubsidiary;

(2) pay any Indebtedness or other obligation owed to the Parent Guarantor or anyother Restricted Subsidiary;

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(3) make loans or advances to the Parent Guarantor or any other Restricted Subsidiary;or

(4) sell, lease or transfer any of its property or assets to the Parent Guarantor or anyother Restricted Subsidiary;

provided that (i) the priority of any Preferred Stock in receiving dividends orliquidating distributions prior to dividends or liquidating distributions being paid onCommon Stock; (ii) the subordination of loans or advances made to the ParentGuarantor or any Restricted Subsidiary to other Indebtedness Incurred by the ParentGuarantor or any Restricted Subsidiary; and (iii) the provisions contained indocumentation governing Indebtedness requiring transactions between or among theParent Guarantor and any Restricted Subsidiary or between or among any RestrictedSubsidiary to be on fair and reasonable terms or on an arm’s length basis, in each case,shall not be deemed to constitute such an encumbrance or restriction.

(b) The provisions of paragraph (a) do not apply to any encumbrances or restrictions:

(1) existing in agreements as in effect on the Original Issue Date, or in the Notes, theGuarantees, the Indenture and any extensions, refinancings, renewals orreplacements of any of the foregoing agreements; provided that the encumbrancesand restrictions in any such extension, refinancing, renewal or replacement, takenas a whole, are no less favorable in any material respect to the Holders than thoseencumbrances or restrictions that are then in effect and that are being extended,refinanced, renewed or replaced;

(2) existing under or by reason of applicable law, rule, regulation, license, concession,approval, decree or order of any Governmental Instrumentality with jurisdictionover the relevant Restricted Subsidiary;

(3) existing with respect to any Person or the property or assets of such Personacquired by the Parent Guarantor or any Restricted Subsidiary, existing at the timeof such acquisition and not incurred in contemplation thereof, which encumbrancesor restrictions are not applicable to any Person or the property or assets of anyPerson other than such Person or the property or assets of such Person so acquired,and any extensions, refinancings, renewals or replacements thereof; provided thatthe encumbrances and restrictions in any such extension, refinancing, renewal orreplacement, taken as a whole, are no less favorable in any material respect to theHolders than those encumbrances or restrictions that are then in effect and that arebeing extended, refinanced, renewed or replaced;

(4) that otherwise would be prohibited by the provision described in clause (a)(4) ofthis covenant if they arise, or are agreed to, in the ordinary course of business andthat (i) restrict in a customary manner the subletting, assignment or transfer of anyproperty or asset that is subject to a lease or license, (ii) exist by virtue of anyLien on, or agreement to transfer, option or similar right with respect to, anyproperty or assets of the Parent Guarantor or any Restricted Subsidiary nototherwise prohibited by the Indenture or (iii) do not relate to any Indebtedness,and that do not, individually or in the aggregate, detract from the value ofproperty or assets of the Parent Guarantor or any Restricted Subsidiary in anymanner material to the Parent Guarantor or any Restricted Subsidiary;

(5) with respect to a Restricted Subsidiary and imposed pursuant to an agreement thathas been entered into for the sale or disposition of all or substantially all of theCapital Stock of, or property and assets of, such Restricted Subsidiary that ispermitted by the “—Limitation on Indebtedness and Preferred Stock” and“—Limitation on Asset Sales” covenants;

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(6) with respect to any Restricted Subsidiary and imposed pursuant to an agreementthat has been entered into for the Incurrence of Indebtedness permitted under the“—Limitation on Indebtedness and Preferred Stock” covenant; provided that, asdetermined in the good faith judgment of the Board of Directors, the encumbrancesor restrictions (i) are customary for such type of agreement and (ii) will notmaterially and adversely affect the Parent Guarantor’s ability to make requiredpayments, including, but not limited to, principal and interest payments, when due,on the Notes;

(7) existing in (x) purchase money obligations for property, plant, equipment or otherassets acquired in the ordinary course of business and (y) Capitalized LeaseObligations permitted under the Indenture, in each case, that impose encumbrancesor restrictions of the nature described in clause (a)(4) of this covenant on theproperty so acquired;

(8) imposed pursuant to any Permitted Refinancing Indebtedness; provided that therestrictions contained in the agreements governing such Permitted RefinancingIndebtedness are not materially more restrictive, taken as a whole, than thosecontained in the agreements governing the Indebtedness being refinanced;

(9) imposed pursuant to Liens permitted to be incurred under the provisions of the“—Limitation on Liens” covenant that limit the right of the debtor to dispose ofthe assets subject to such Liens;

(10) with respect to cash or other deposits or net worth imposed by customers undercontracts entered into in the ordinary course of business;

(11) imposed pursuant to customary non-assignment provisions in contracts and licensesentered into in the ordinary course of business; or

(12) imposed pursuant to joint venture agreements, asset sale or purchase agreements,sale and leaseback agreements, stock sale agreements, BOT Agreements and othersimilar agreements; provided that such encumbrances or restrictions (i) areapplicable only to the assets or property that are the subject of such agreementsand (ii) as determined in the good faith judgment of the Board of Directors, theencumbrances or restrictions (x) are customary for any such agreements and (y)will not materially and adversely affect the Parent Guarantor’s ability to makerequired payments, including, but not limited to, principal and interest payments,when due, on the Notes.

Limitation on Transactions with Shareholders and Affiliates

The Parent Guarantor will not, and will not permit any Restricted Subsidiary to, directly orindirectly, enter into, renew or extend any transaction or arrangement (including, withoutlimitation, the purchase, sale, lease or exchange of property or assets, or the rendering of anyservice) with (x) any holder (or any Affiliate of such holder) of 10% or more of any class ofCapital Stock of the Parent Guarantor or (y) any Affiliate of the Parent Guarantor (each an“Affiliate Transaction”), unless:

(1) the Affiliate Transaction is on terms that are no less favorable to the Parent Guarantoror such Restricted Subsidiary than those that could be obtained, at the time of suchtransaction or, if such transaction is pursuant to a written agreement, at the time of theexecution of the agreement providing therefor, in a comparable arm’s-length transactionby the Parent Guarantor or such Restricted Subsidiary with a Person that is not such aholder or an Affiliate of the Parent Guarantor or such Restricted Subsidiary; and

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(2) the Parent Guarantor delivers to the Trustee:

(a) with respect to any Affiliate Transaction or series of related Affiliate Transactionsinvolving aggregate consideration in excess of US$10.0 million (or the DollarEquivalent thereof), a Board Resolution set forth in an Officer’s Certificatecertifying that such Affiliate Transaction complies with this covenant and suchAffiliate Transaction has been approved by the Board of Directors; provided that,if no disinterested member of the Board of Directors exists with respect to anyAffiliate Transaction, the transaction may be approved by a majority of themembers of the Board of Directors if the requirements of clause (b) below are metwith respect to such Affiliate Transaction as if it involved aggregate considerationin excess of US$20.0 million; and

(b) with respect to any Affiliate Transaction or series of related Affiliate Transactionsinvolving aggregate consideration in excess of US$20.0 million (or the DollarEquivalent thereof), in addition to the Board Resolution required in clause (2)(a)above, an opinion as to the fairness to the Parent Guarantor or such RestrictedSubsidiary of such Affiliate Transaction from a financial point of view issued byan accounting, appraisal or investment banking firm of recognized internationalstanding.

The foregoing limitation does not limit, and will not apply to:

(1) the payment of reasonable and customary regular fees to, and indemnity provided onbehalf of, directors of the Parent Guarantor or any Restricted Subsidiary who are notemployees of the Parent Guarantor or any Restricted Subsidiary;

(2) transactions otherwise not prohibited under the Indenture between or among the ParentGuarantor and any Wholly Owned Restricted Subsidiary or between or among WhollyOwned Restricted Subsidiaries;

(3) transactions with customers, clients, suppliers, distributors, generators, transporters orpurchasers or sellers of goods or services (including administrative, cash management,legal and regulatory, engineering, technical, financial, accounting, procurement,marketing, insurance, labor, management, operation and maintenance, power supply andother services) or insurance or lessors or lessees or providers of employees or otherlabor or property, in each case in the ordinary course of business and on terms that arefair or at least as favorable as arm’s length as determined in good faith by the Board ofDirectors;

(4) any Restricted Payment of the type described in clause (1), (2) or (3) of the firstparagraph of the covenant described under the caption “—Limitation on RestrictedPayments” if not prohibited by that covenant;

(5) transactions or payments pursuant to any employee, officer, commissioner or directorcompensation or benefit plans or employment or indemnification agreements, includingstock option or employee stock-ownership plans, or arrangements entered into in theordinary course of business and approved by the Board of Directors;

(6) transactions pursuant to any contract or agreement as in effect on the Original IssueDate, as amended, modified or renewed from time to time so long as such amended,modified or renewed agreement is not less favorable in any material respect to theParent Guarantor and its Restricted Subsidiaries than the original agreement as in effecton the Original Issue Date;

(7) the issuance or sale of any Capital Stock (other than Disqualified Stock) of the ParentGuarantor; and

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(8) loans or advances to, or guarantees of obligations of, directors, commissioners, officersor employees of the Parent Guarantor or a Restricted Subsidiary in the ordinary courseof business not to exceed US$2.0 million (or the Dollar Equivalent thereof) in theaggregate at any one time outstanding.

In addition, the requirements of clause (2) of the first paragraph of this covenant will notapply to (a) Investments (other than Permitted Investments) not prohibited by the “—Limitation onRestricted Payments” covenant, (b) any transaction between or among the Parent Guarantor or aWholly Owned Restricted Subsidiary and any Restricted Subsidiary that is not a Wholly OwnedRestricted Subsidiary or between or among Restricted Subsidiaries that are not Wholly OwnedRestricted Subsidiaries; provided that (i) such transaction is entered into in the ordinary course ofbusiness and (ii) none of the minority shareholders or minority partners of or in any suchRestricted Subsidiary is a Person described in clauses (x) or (y) of the first paragraph of thiscovenant (other than by reason of such minority shareholder or minority partner being an officeror director of such Restricted Subsidiary), (c) any Shareholder Subordinated Loan or (d) anytransaction between or among the Parent Guarantor, the Issuer or Signal Capital permitted underthe Indenture.

Limitation on Liens

The Parent Guarantor will not, and will not permit any Restricted Subsidiary to, directly orindirectly, incur, assume or permit to exist any Lien of any nature whatsoever on any of its assetsor properties of any kind, whether owned at the Original Issue Date or thereafter acquired, exceptPermitted Liens, unless the Notes are secured equally and ratably with (or, if the obligation to besecured by such Lien is subordinated in right of payment to the Notes or any Guarantee, prior to)the obligations so secured for so long as such obligations are so secured.

Limitation on Asset Sales

The Parent Guarantor will not, and will not permit any Restricted Subsidiary to, consummateany Asset Sale, unless:

(1) no Default will have occurred and be continuing or would occur as a result of suchAsset Sale;

(2) the consideration received by the Parent Guarantor or such Restricted Subsidiary, as thecase may be, is at least equal to the Fair Market Value of the assets sold or disposed of;

(3) in the case of an Asset Sale that constitutes an Asset Disposition, the Parent Guarantorcould Incur at least US$1.00 of Indebtedness under the proviso in clause (a) of thecovenant under the caption “—Limitation on Indebtedness and Preferred Stock” prior toand after giving pro forma effect to such Asset Disposition;

(4) at least 75% of the consideration received consists of cash, Temporary Cash Investmentor the Replacement Assets; provided that in the case of an Asset Sale in which theParent Guarantor or such Restricted Subsidiary receives Replacement Assets involvingaggregate consideration in excess of US$10.0 million (or the Dollar Equivalent thereof),the Parent Guarantor shall deliver to the Trustee an opinion of fairness to the ParentGuarantor or such Restricted Subsidiary of such Asset Sale from a financial point ofview issued by an accounting, appraisal or investment banking firm of recognizedinternational standing. For purposes of this provision, each of the following will bedeemed to be cash:

(a) any liabilities, as shown on the Parent Guarantor’s most recent consolidatedstatement of financial position, of the Parent Guarantor or any RestrictedSubsidiary (other than liabilities that are contingent or by their terms subordinated

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to the Notes or any Guarantee) that are assumed by the transferee of any suchassets pursuant to a customary assumption, assignment, novation or similaragreement that irrevocably and unconditionally releases the Parent Guarantor orsuch Restricted Subsidiary from further liability;

(b) any securities, notes or other obligations received by the Parent Guarantor or anyRestricted Subsidiary from such transferee that are promptly, but in any eventwithin 45 days of closing, converted by the Parent Guarantor or such RestrictedSubsidiary into cash, to the extent of the cash received in that conversion; and

(c) any Capital Stock or assets referred to in clauses (2) and (3) of the next paragraph.

Within 360 days after the receipt of any Net Cash Proceeds from an Asset Sale, the ParentGuarantor (or the applicable Restricted Subsidiary, as the case may be) will apply such Net CashProceeds to:

(1) apply an amount equal to such Net Cash Proceeds to permanently repay anyunsubordinated Indebtedness of the Parent Guarantor or a Restricted Subsidiary (and, ifsuch Indebtedness repaid is revolving credit Indebtedness, to correspondingly reducecommitments with respect thereto) in each case owing to a Person other than the ParentGuarantor or a Restricted Subsidiary;

(2) invest an equal amount, or the amount not so applied pursuant to clause (1) above, inproperties or assets other than current assets that will be used in the PermittedBusinesses (“Replacement Assets”) (provided that this clause (2) shall be satisfied if theParent Guarantor (or the applicable Restricted Subsidiary, as the case may be) (x) entersinto a definitive agreement committing to invest the relevant amount in ReplacementAssets within 360 days of the receipt of such Net Cash Proceeds and (y) actuallyinvests such amount in Replacement Assets with 180 days after entering into suchdefinitive agreement);

(3) acquire all or substantially all of the assets of, or any Capital Stock of, any entityinvolved in the Permitted Business, if, after giving effect to any such acquisition ofCapital Stock, such entity involved in the Permitted Business is or becomes a RestrictedSubsidiary; or

(4) make capital expenditures relating to properties or assets that are used in the PermittedBusiness.

Pending application of such Net Cash Proceeds as set forth in the preceding paragraph, theParent Guarantor (or the applicable Restricted Subsidiary) may use such Net Cash Proceeds tomake an Investment in cash or Temporary Cash Investments or to temporarily reduce revolvingcredit Indebtedness.

Any Net Cash Proceeds from Asset Sales that are not applied or invested as provided in thesecond preceding paragraph will constitute “Excess Proceeds.” Excess Proceeds of less thanUS$20.0 million (or the Dollar Equivalent thereof) will be carried forward and accumulated. Whenaccumulated Excess Proceeds exceed US$20.0 million (or the Dollar Equivalent thereof), within10 days thereof, the Parent Guarantor or the Issuer must make an Offer to Purchase Notes havinga principal amount equal to:

(1) accumulated Excess Proceeds, multiplied by

(2) a fraction (x) the numerator of which is equal to the outstanding principal amount ofthe Notes and (y) the denominator of which is equal to the outstanding principal amountof the Notes and all pari passu Indebtedness similarly required to be repaid, redeemedor tendered for in connection with the Asset Sale, rounded down to the nearestUS$1,000.

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The offer price in any Offer to Purchase will be equal to 100% of the principal amount plus

accrued and unpaid interest to (but not including) the date of purchase, and will be payable in

cash.

If any Excess Proceeds remain after consummation of an Offer to Purchase, such remaining

Excess Proceeds may be used for any general corporate purpose not prohibited by the Indenture. If

the aggregate principal amount of Notes (and any other pari passu Indebtedness) tendered in such

Offer to Purchase exceeds the amount of Excess Proceeds, the Trustee will select the Notes (and

such other pari passu Indebtedness) to be purchased on a pro rata basis. Upon completion of each

Offer to Purchase, the amount of Excess Proceeds will be reset at zero.

Limitation on the Parent Guarantor’s Business Activities

The Parent Guarantor will not, and will not permit any Restricted Subsidiary to, engage in

any business other than Permitted Businesses, except to the extent as would not be material to the

Parent Guarantor and its Restricted Subsidiaries taken as a whole.

Limitation on the Activities of the Issuer

Notwithstanding anything contained in the Indenture to the contrary, the Issuer will not

engage in any business activity or undertake any other activity, except any activity (a) relating to

the offering, sale or issuance of the Notes (including any Additional Notes), relating to the 2019

Notes (to the extent such 2019 Notes remain outstanding) and the incurrence of the Indebtedness

represented by the Notes or any Additional Notes issued under the Indenture or the 2019 Notes or

any additional 2019 Notes issued under the 2019 Indenture, (b) relating to the offering, sale or

issuance of debt obligations similar to the Notes in the future and the incurrence of Indebtedness

represented by such debt obligations (and in connection with which the Issuer transfers or

otherwise uses the proceeds thereof as provided in the following clause (c)), (c) transferring the

proceeds of debt issuances under clauses (a) or (b) to Signal Capital, whether as a contribution as

share premium, by way of subscription for new shares in the capital of Signal Capital, granting of

intercompany loans to Signal Capital or otherwise, (d) undertaken with the purpose of fulfilling

any obligations under the Indebtedness referred to in clauses (a) and (b) or the Indenture or the

2019 Indenture or any future indenture related to such Indebtedness or for purposes of consent

solicitation or tender for such Indebtedness or redemption or refinancing of such Indebtedness, (e)

directly related to the establishment and/or maintenance of the Issuer’s corporate existence, (f)

that provides advisory services and administrative assistance to the Parent Guarantor and any

Restricted Subsidiary, (g) undertaken to consummate a transaction in accordance with the covenant

described under the caption the “—Consolidation, Merger and Sale of Assets” or (h) directly

related to the holding of cash and investments in Temporary Cash Investments.

The Issuer will not (a) issue any Capital Stock other than the issuance of its ordinary shares

to the Parent Guarantor or (b) acquire or receive any property or assets (including, without

limitation, any Capital Stock or Indebtedness of any Person), other than (x) the Capital Stock or

Indebtedness of the Parent Guarantor or any of its Restricted Subsidiaries, including Signal

Capital, and (y) cash or other assets for ongoing corporate activities of the Issuer described in the

preceding paragraph.

The Issuer will at all times remain a direct Wholly Owned Restricted Subsidiary of the

Parent Guarantor.

In the event that the Issuer is the obligor on Indebtedness owed to Signal Capital, such

Indebtedness must be unsecured and expressly subordinated in right of payment to the Notes.

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For so long as any Notes are outstanding, none of the Issuer, Signal Capital or the ParentGuarantor will commence or take any action to cause a winding-up or liquidation of the Issuer orSignal Capital except that the Issuer or Signal Capital may be wound up or liquidated subsequentto a consolidation, merger or transfer of assets conducted in accordance with the covenantdescribed under the caption “—Consolidation, Merger and Sale of Assets.”

Maintenance of Insurance

The Parent Guarantor will, and will cause each Restricted Subsidiary, to maintain insurancewith reputable and financially sound carriers against such risks and in such amounts as iscustomarily carried by similarly situated businesses in the jurisdictions in which the ParentGuarantor or such Restricted Subsidiary conducts its businesses, including, without limitation,property and casualty insurance.

Designation of Restricted and Unrestricted Subsidiaries

The Board of Directors may designate any Restricted Subsidiary (other than the Issuer orSignal Capital) to be an Unrestricted Subsidiary; provided that (i) such designation would notcause or result in a Default; (ii) such Restricted Subsidiary does not own any Disqualified Stockof the Parent Guarantor or Disqualified or Preferred Stock of another Restricted Subsidiary orhold any Indebtedness of, or any Lien on any property of, the Parent Guarantor or any RestrictedSubsidiary, (iii) neither the Parent Guarantor nor any Restricted Subsidiary guarantees or providescredit support for the Indebtedness or other liabilities of such Restricted Subsidiary; (iv) suchRestricted Subsidiary does not own any Capital Stock of the Parent Guarantor or anotherRestricted Subsidiary, and all of its Subsidiaries are Unrestricted Subsidiaries or are beingconcurrently designated to be Unrestricted Subsidiaries in accordance with this paragraph; (v) theInvestment deemed to have been made thereby in such newly-designated Unrestricted Subsidiaryand each other newly-designated Unrestricted Subsidiary being concurrently redesignated would bepermitted to be made by the covenant described under “—Limitation on Restricted Payments”; and(vi) such Unrestricted Subsidiary does not own or operate or possess any material license,franchise or right used in connection with the ownership or operation of any part of the ParentGuarantor’s or its Restricted Subsidiaries’ business, the loss of which by such Subsidiary will not,after giving pro forma effect thereto, materially adversely affect the business, results of operationsor prospects of the Parent Guarantor and its Restricted Subsidiaries.

The Board of Directors may designate any Unrestricted Subsidiary to be a RestrictedSubsidiary; provided that (i) such designation will not cause or result in a Default; (ii) anyIndebtedness of such Unrestricted Subsidiary outstanding at the time of such designation whichwill be deemed to have been Incurred by such newly-designated Restricted Subsidiary as a resultof such designation would be permitted to be Incurred by the covenant described under the caption“—Limitation on Indebtedness and Preferred Stock”; (iii) any Lien on the property of suchUnrestricted Subsidiary at the time of such designation which will be deemed to have beenincurred by such newly-designated Restricted Subsidiary as a result of such designation would bepermitted to be incurred by the covenant described under the caption “—Limitation on Liens”; (iv)such Unrestricted Subsidiary is not a Subsidiary of another Unrestricted Subsidiary (that is notconcurrently being designated as a Restricted Subsidiary); and (v) such Restricted Subsidiary, if itis required to guarantee the Notes as described under “Future Subsidiary Guarantees”, will uponsuch designation execute and deliver to the Trustee a supplemental indenture to the Indenture bywhich such Restricted Subsidiary will become a Subsidiary Guarantor.

Signal Capital will at all times remain a Wholly Owned Restricted Subsidiary of the ParentGuarantor.

Use of Proceeds

The Issuer, Signal Capital and the Parent Guarantor (as applicable) will use the net proceedsreceived from the Notes as set forth in this offering memorandum.

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Anti-Layering

The Issuer will not Incur, and the Parent Guarantor will not and will not permit anySubsidiary Guarantor to Incur, any Indebtedness if such Indebtedness is contractually subordinatedin right of payment to any other Indebtedness of the Issuer, the Parent Guarantor or suchSubsidiary Guarantor, as the case may be, unless such Indebtedness is also contractuallysubordinated in right of payment to the Notes or the applicable Guarantee, on substantiallyidentical terms. This does not apply to distinctions between categories of Indebtedness that existby reason of any Liens or guarantees securing or in favor of some but not all of such Indebtednessor securing on a junior priority basis.

Suspension of Certain Covenants

If on any date following the date of the Indenture, the Notes have an Investment Graderating from both of the Rating Agencies and no Default has occurred and is continuing (a“Suspension Event”), then, beginning on that day and continuing until such time, if any, at whichthe Notes cease to have an Investment Grade rating from either of the Rating Agencies, theprovisions of the Indenture summarized under the following captions will be suspended:

(1) “—Certain Covenants—Limitation on Indebtedness and Preferred Stock”;

(2) “—Certain Covenants—Limitation on Restricted Payments”;

(3) “—Certain Covenants—Limitation on Dividend and Other Payment RestrictionsAffecting Restricted Subsidiaries”;

(4) clause (3) of the third paragraph and clause (3) of the fourth paragraph of the covenantdescribed under the caption “Consolidation, Merger and Sale of Assets”;

(5) “—Certain Covenants—Limitation on Asset Sales”;

(6) “—Certain Covenants—Limitation on the Parent Guarantor’s Business Activities”;

(7) “—Certain Covenants—Maintenance of Insurance”; and

(8) “—Certain Covenants—Anti-Layering.”

During any period that the foregoing covenants have been suspended, the Board of Directorsmay not designate any of the Restricted Subsidiaries as Unrestricted Subsidiaries pursuant to thecovenant summarized under the caption “—Certain Covenants—Designation of Restricted andUnrestricted Subsidiaries” or the definition of “Unrestricted Subsidiary.”

Such covenants will be reinstituted and apply according to their terms as of and from thefirst day on which a Suspension Event ceases to be in effect (the “Reinstatement Date”). Theperiod of time between the date of the Suspension Event and the Reinstatement Date is referred toas the “Suspension Period.” Such covenants will not, however, be of any effect with regard toactions of the Parent Guarantor, the Issuer or any Restricted Subsidiary properly taken incompliance with the provisions of the Indenture during the Suspension Period. Following theReinstatement Date, calculations under the covenant summarized under “—CertainCovenants—Limitation on Restricted Payments” will be made as if such covenant had been ineffect since the date of the Indenture except that no Default will be deemed to have occurredsolely by reason of a Restricted Payment made during the Suspension Period. On theReinstatement Date, all Indebtedness Incurred during the Suspension Period will be classified tohave been Incurred pursuant to clause (2) of paragraph (b) of the covenant under the caption“—Certain Covenants—Limitation on Indebtedness and Preferred Stock.”

There can be no assurance that the Notes will ever achieve an Investment Grade rating orthat any such rating will be maintained.

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Provision of Financial Statements and Reports

(a) So long as any of the Notes remain outstanding, the Parent Guarantor will file with theTrustee and furnish to the Holders upon request, as soon as they are available but inany event not more than 10 calendar days after they are filed with the Indonesia StockExchange or any other national stock exchange on which the Parent Guarantor’sCommon Stock is at any time listed for trading, true and correct copies of any financialor other report in the English language (and an English translation of any financial orother report in any other language) filed with such exchange; provided that if at anytime the Common Stock of the Parent Guarantor ceases to be listed for trading on theIndonesia Stock Exchange or any other national stock exchange, the Parent Guarantorwill file with the Trustee and furnish to the Holders in the English language (oraccompanied by an English translation) upon request:

(1) as soon as they are available, but in any event within 120 calendar days after theend of the fiscal year of the Parent Guarantor, copies of its financial statements(on a consolidated basis) in respect of such financial year (including a statementof comprehensive income, statement of financial position and cash flow statement)audited by a member firm of an internationally recognized firm of independentaccountants; and

(2) as soon as they are available, but in any event within 60 calendar days after theend of each of the first, second and third fiscal quarters of the Parent Guarantor,copies of its unaudited financial statement (on a consolidated basis) in respect ofsuch quarterly period (including a statement of comprehensive income, statementof financial position and cash flow statement) prepared on a basis consistent withthe audited financial statements of the Parent Guarantor together with a certificatesigned by the Person then authorized to sign financial statements on behalf of theParent Guarantor to the effect that such financial statements are true in all materialrespects and present fairly the financial position of the Parent Guarantor as at theend of, and the results of its operations for, the relevant quarterly period.

(b) In addition, so long as any of the Notes remain outstanding, the Parent Guarantor willprovide to the Trustee (1) within 120 days after the end of each fiscal year, an Officer’sCertificate stating the Fixed Charge Coverage Ratio with respect to the four most recentfiscal quarters and showing in reasonable detail the calculation of the Fixed ChargeCoverage Ratio, including the arithmetic computations of each component of the FixedCharge Coverage Ratio, with a certificate from the Parent Guarantor’s external auditorsverifying the accuracy and correctness of the calculation and arithmetic computation;provided that the Parent Guarantor shall not be required to provide such auditorcertification if its external auditors refuse as a general policy to provide suchcertification and (2) as soon as possible and in any event within 20 days after theParent Guarantor becomes aware of the occurrence thereof, written notice of theoccurrence of any event or condition which constitutes an Event of Default and anOfficer’s Certificate of the Parent Guarantor setting forth the details thereof and theaction the Parent Guarantor is taking or proposes to take with respect thereto.

Further, the Issuer and the Parent Guarantor have agreed that, during any period in which theIssuer or the Parent Guarantor is neither subject to Section 13 or 15(d) of the Securities ExchangeAct of 1934, as amended (the “Exchange Act”), nor exempt from reporting pursuant to Rule12g3-2(b) thereunder, the Issuer or the Parent Guarantor, as the case may be, will supply to (i)any Holder or beneficial owner of a Note or (ii) a prospective purchaser of a Note or a beneficialinterest therein designated by such Holder or beneficial owner, the information specified in, andmeeting the requirements of Rule 144A(d)(4) under the Securities Act upon the request of anyHolder or beneficial owner of a Note.

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Events of Default

The following events will be defined as “Events of Default” in the Indenture with respect tothe Notes:

(a) default in the payment of principal of (or premium, if any, on) the Notes when the samebecomes due and payable at maturity, upon acceleration, redemption or otherwise;

(b) default in the payment of interest on any Note when the same becomes due and payable,and such default continues for a period of 30 days;

(c) the Parent Guarantor or any Restricted Subsidiary defaults in the performance of orbreaches the covenants described under “—Consolidation, Merger and Sale of Assets” orfails to make or consummate an Offer to Purchase in the manner described under thecaptions “—Repurchase of Notes Upon a Change of Control Triggering Event” or“—Certain Covenants—Limitation on Asset Sales”;

(d) the Parent Guarantor or any Restricted Subsidiary defaults in the performance of orbreaches any other covenant or agreement in the Indenture or under the Notes (otherthan a default specified in clause (a), (b) or (c) above) and such default or breachcontinues for a period of 30 consecutive days after written notice by the Trustee (actingon the written instructions of the Holders of at least 25% in aggregate principal amountof the outstanding Notes) or the Holders of 25% or more in aggregate principal amountof the outstanding Notes;

(e) there occurs with respect to any Indebtedness of the Parent Guarantor or any RestrictedSubsidiary having an outstanding principal amount of US$20.0 million (or the DollarEquivalent thereof) or more in the aggregate for all such Indebtedness of all suchPersons, whether such Indebtedness now exists or will hereafter be created, (A) anevent of default that has caused the holder thereof to declare such Indebtedness to bedue and payable prior to its Stated Maturity or (B) the failure to make a principalpayment of or interest or premium (subject to the applicable grace period in the relevantdocuments) on such Indebtedness when the same becomes due;

(f) one or more final judgments or orders for the payment of money are rendered againstthe Parent Guarantor or any of its Restricted Subsidiaries and are not paid ordischarged, and there is a period of 60 consecutive days following entry of the finaljudgment or order that causes the aggregate amount for all such final judgments ororders outstanding and not paid or discharged against all such Persons to exceedUS$20.0 million (or the Dollar Equivalent thereof) during which a stay of enforcement,by reason of a pending appeal or otherwise, is not in effect;

(g) an involuntary case or other proceeding is commenced against the Parent Guarantor orany Significant Subsidiary (or any group of Restricted Subsidiaries that, taken together,would constitute a Significant Subsidiary) with respect to it or its debts under anyapplicable bankruptcy, insolvency or other similar law now or hereafter in effectseeking the appointment of a receiver, liquidator, assignee, custodian, trustee,sequestrator or similar official of the Parent Guarantor or any Significant Subsidiary (orany group of Restricted Subsidiaries that, taken together, would constitute a SignificantSubsidiary) or for any substantial part of the property and assets of the ParentGuarantor or any Significant Subsidiary (or any group of Restricted Subsidiaries that,taken together, would constitute a Significant Subsidiary) and such involuntary case orother proceeding remains undismissed and unstayed for a period of 60 consecutive days;or an order for relief is entered against the Parent Guarantor or any SignificantSubsidiary (or any group of Restricted Subsidiaries that, taken together, wouldconstitute a Significant Subsidiary) under any applicable bankruptcy, insolvency or othersimilar law as now or hereafter in effect;

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(h) the Parent Guarantor or any Significant Subsidiary (or any group of RestrictedSubsidiaries that, taken together, would constitute a Significant Subsidiary) (A)commences a voluntary case under any applicable bankruptcy, insolvency or othersimilar law now or hereafter in effect, or consents to the entry of an order for relief inan involuntary case under any such law, (B) consents to the appointment of or takingpossession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similarofficial of the Parent Guarantor or any Significant Subsidiary (or any group ofRestricted Subsidiaries that, taken together, would constitute a Significant Subsidiary)or for all or substantially all of the property and assets of the Parent Guarantor or anySignificant Subsidiary (or any group of Restricted Subsidiaries that, taken together,would constitute a Significant Subsidiary) or (C) effects any general assignment for thebenefit of creditors;

(i) any Guarantor denies or disaffirms its obligations under its Guarantee or, except aspermitted by the Indenture, any Guarantee is determined in any judicial proceeding tobe unenforceable or invalid or will for any reason cease to be in full force and effect;or

(j) revocation, termination, suspension or other cessation of effectiveness of any license,consent, approval, permit or other authorization, which results in the cessation orsuspension of substantially all of the Parent Guarantor’s operations for a period of morethan 90 consecutive days.

If an Event of Default (other than an Event of Default specified in clause (g) or (h) above)occurs and is continuing under the Indenture, the Trustee or the Holders of at least 25% inaggregate principal amount of the Notes, then outstanding, may, and the Trustee at the writtendirection of such Holders will, subject to being indemnified and/or secured to its satisfaction, bywritten notice to the Issuer (and to the Trustee if such notice is given by the Holders), declare theprincipal of, premium, if any, and accrued and unpaid interest on the Notes to be immediately dueand payable. Upon a declaration of acceleration, such principal of, premium, if any, and accruedand unpaid interest will be immediately due and payable. If an Event of Default specified inclause (g) or (h) above occurs with respect to the Notes, the principal of, premium, if any, andaccrued and unpaid interest on the Notes then outstanding will automatically become and beimmediately due and payable without any declaration or other act on the part of the Trustee or anyHolder.

The Holders of at least a majority in principal amount of the outstanding Notes by writtennotice to the Issuer and to the Trustee, may on behalf of all of the Holders waive all past defaultsand rescind and annul a declaration of acceleration and its consequences with respect to the Notesif:

(x) all existing Events of Default, other than the nonpayment of the principal of, premium,if any, and interest on the Notes that have become due solely by such declaration ofacceleration, have been cured or waived, and

(y) the rescission would not conflict with any judgment or decree of a court of competentjurisdiction.

Upon such waiver, the Default will cease to exist, and any Event of Default arising therefromwill be deemed to have been cured, but no such waiver will extend to any subsequent or otherDefault or impair any right consequent thereon.

The Holders of at least a majority in aggregate principal amount of the outstanding Notesmay direct the time, method and place of conducting any proceeding for any remedy available tothe Trustee with respect to the Notes or exercising any trust or power conferred on the Trustee.However, the Trustee may refuse to follow any direction that conflicts with law or the Indenture,that may involve the Trustee in personal liability, or that may be unduly prejudicial to the rights

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of Holders not joining in the giving of such direction and may take any other action it deemsproper that is not inconsistent with any such direction received from Holders. In addition, theTrustee will not be required to expend its own funds in following such direction if it does notbelieve that pre-funding or satisfactory indemnification and/or security is assured to it.

A Holder may not pursue or institute any proceeding, judicial or otherwise, with respect tothe Indenture or the Notes, or for the appointment of a receiver or trustee, or for any other remedyunder the Indenture or the Notes, unless:

(1) the Holder has previously given the Trustee written notice of a continuing Event ofDefault;

(2) the Holders of at least 25% in aggregate principal amount of outstanding Notes make awritten request to the Trustee to pursue the remedy;

(3) such Holder or Holders offer the Trustee security and/or indemnity satisfactory to theTrustee against any costs, liability or expense to be incurred in compliance with suchrequest;

(4) the Trustee does not comply with the request within 60 days after receipt of the requestand the offer of security or indemnity; and

(5) during such 60-day period, the Holders of a majority in aggregate principal amount ofthe outstanding Notes do not give the Trustee a direction that is inconsistent with therequest.

However, such limitations do not apply to the contractual right of any Holder of a Note toreceive payment of the principal of, premium, if any, or interest, and Additional Amounts, if any,on, such Note or to bring suit for the enforcement of any such payment, on or after the due dateexpressed in the Notes, which contractual right will not be impaired or affected without theconsent of the Holder.

For so long as any of the Notes remain outstanding, an Officer of the Parent Guarantor willcertify to the Trustee in writing, on or before a date not more than 120 days after the end of eachfiscal year, that a review has been conducted of the activities of the Parent Guarantor and itsRestricted Subsidiaries and the Parent Guarantor’s and its Restricted Subsidiaries’ performanceunder the Indenture and the Notes and that each of the Issuer and the Parent Guarantor hasfulfilled all obligations thereunder, or, if there has been a default in fulfillment of any suchobligation, specifying each such default and the nature and status thereof. The Parent Guarantorwill also be obligated to notify the Trustee in writing of any default or defaults in the performanceof any covenants or agreements under the Indenture. See “—Provision of Financial Statements andReports.” None of the Trustee or any Agent is obligated to do anything to ascertain whether anyEvent of Default or Default has occurred or is continuing and will not be responsible to Holdersor any other person for any loss arising from any failure by it to do so, and each of the Trusteeand the Agents may assume that no such event has occurred (except when there is a default inpayment of principal or interest on any Note or failure by the Parent Guarantor to provide itsannual compliance certificate to the Trustee) and that the Issuer, the Parent Guarantor and theSubsidiary Guarantors are performing all of their obligations under the Indenture and the Notesunless the Trustee or the Agent, as the case may be, has received written notice of the occurrenceof such event or facts establishing that a Default or an Event of Default has occurred or that theIssuer, the Parent Guarantor and the Subsidiary Guarantors are not performing all of theirobligations under the Indenture and/or the Notes.

Consolidation, Merger and Sale of Assets

The Issuer will not consolidate with, merge with or into, another Person (other than theParent Guarantor), permit any Person to merge with or into it, or sell, convey, transfer, lease orotherwise dispose of all or substantially all of its properties and assets to any Person (other than

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the Parent Guarantor); provided that, in the event the Issuer so consolidates with, merges with orinto, the Parent Guarantor or sells, conveys, transfers, leases or otherwise disposes of all orsubstantially all or substantially all of its properties and assets to the Parent Guarantor, the ParentGuarantor immediately after such transaction, will (a) assume, by a supplemental indenture to theIndenture, executed and delivered to the Trustee, all the obligations of the Issuer under theIndenture and the Notes, which shall remain in full force and effect and (b) deliver to the Trusteean Officer’s Certificate and an Opinion of Counsel, in each case stating that such transaction andsuch supplemental indenture complies with this provision and that all conditions precedentprovided for herein relating to such transaction have been complied with.

Notwithstanding the foregoing, the Issuer may consolidate with, merge with or into, anotherPerson, permit any Person to merge with or into it, or sell convey, transfer, lease, assign orotherwise dispose of all or substantially all of its properties and assets to any Person or enter intoany other similar transaction, in each case, for the purpose of reincorporating, reorganizing orreestablishing the Issuer (including a successor entity) in Singapore, Indonesia, the CaymanIslands or the British Virgin Islands or converting the Issuer into a Person incorporated, organizedor existing in Singapore, Indonesia, the Cayman Islands or the British Virgin Islands; providedthat each of the following conditions is satisfied:

(1) such Person or the successor entity (if it is not the predecessor Issuer) immediatelyafter such transaction, will (a) assume, by a supplemental indenture to the Indenture,executed and delivered to the Trustee, all the obligations of the Issuer under theIndenture and the Notes, which shall remain in full force and effect, (b) be a directWholly Owned Subsidiary of the Parent Guarantor and is a disregarded entity for U.S.federal income tax purposes, and (c) deliver to the Trustee an Officer’s Certificate andan Opinion of Counsel, in each case stating that such transaction and such supplementalindenture complies with this provision and that all conditions precedent provided forherein relating to such transaction have been complied with;

(2) immediately after giving effect to such transaction, no Default shall have occurred andbe continuing; and

(3) the Parent Guarantor and each Subsidiary Guarantor shall execute and deliver asupplemental indenture to the Indenture confirming that the Parent Guarantee and itsSubsidiary Guarantee, as the case may be, shall apply to the obligations of such Personor the successor entity in accordance with the Notes and the Indenture. Concurrentlywith the execution of the Parent Guarantee, the Parent Guarantor will also enter into aDeed of Guarantee governed by the laws of Indonesia, which will provide for the ParentGuarantor’s guarantee of the due and punctual payment of the principal of, premium (ifany) and interest on, and all other amounts payable under, the Notes under the laws ofIndonesia. Concurrently with the execution of the Subsidiary Guarantees, SubsidiaryGuarantors incorporated in the Republic of Indonesia will also enter into Deeds ofGuarantee governed by the laws of Indonesia, which will provide for such SubsidiaryGuarantors’ guarantee of the due and punctual payment of the principal of, premium (ifany) and interest on, and all other amounts payable under, the Notes under the laws ofIndonesia.

The Parent Guarantor will not consolidate with, merge with or into another Person, permitany Person to merge with or into it, or sell, convey, transfer, lease or otherwise dispose of all orsubstantially all of its and its Restricted Subsidiaries’ properties and assets (computed on aconsolidated basis) (as an entirety or substantially an entirety in one transaction or a series ofrelated transactions), unless:

(1) the Parent Guarantor will be the continuing Person, or the Person (if other than it)formed by such consolidation or merger or that acquired or leased such property andassets (the “Surviving Person”) will be a corporation organized and validly existingunder the laws of Indonesia and will expressly assume, by a supplemental indenture to

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the Indenture, executed and delivered to the Trustee, all the obligations of the ParentGuarantor under the Indenture, the Notes and the Parent Guarantee, as the case may be,and the Indenture, the Notes and the Parent Guarantee, as the case may be, will remainin full force and effect;

(2) immediately after giving effect to such transaction, no Default will have occurred andbe continuing;

(3) immediately after giving effect to such transaction on a pro forma basis, the ParentGuarantor or the Surviving Person, as the case may be, could Incur at least US$1.00 ofIndebtedness under the proviso in clause (a) of the covenant under the caption“—Certain Covenants—Limitation on Indebtedness and Preferred Stock”;

(4) the Issuer or the Parent Guarantor delivers to the Trustee (x) an Officer’s Certificate(attaching the arithmetic computations to demonstrate compliance with clause (3) of thisparagraph) and (y) an Opinion of Counsel, in each case stating that such consolidation,merger or transfer and the relevant supplemental indenture complies with this provisionand that all conditions precedent provided for in the Indenture relating to suchtransaction have been complied with and that the relevant supplemental indenture isenforceable; and

(5) no Rating Decline will have occurred.

No Subsidiary Guarantor will consolidate with, merge with or into another Person, permitany Person to merge with or into it, or sell, convey, transfer, lease or otherwise dispose of all orsubstantially all of its and its Restricted Subsidiaries’ properties and assets (computed on aconsolidated basis) (as an entirety or substantially an entirety in one transaction or a series ofrelated transactions) to another Person (other than the Parent Guarantor or another SubsidiaryGuarantor), unless:

(1) such Subsidiary Guarantor will be the continuing Person, or the Person (if other than it)formed by such consolidation or merger or that acquired or leased such property andassets will be the Parent Guarantor or another Subsidiary Guarantor or will become aSubsidiary Guarantor concurrently with the transaction;

(2) immediately after giving effect to such transaction, no Default will have occurred andbe continuing;

(3) immediately after giving effect to such transaction on a pro forma basis, the ParentGuarantor could incur at least US$1.00 of Indebtedness under the proviso in clause (a)of the covenant under the caption “—Certain Covenants—Limitation on Indebtednessand Preferred Stock”;

(4) the Issuer or the Parent Guarantor delivers to the Trustee (x) an Officer’s Certificate(attaching the arithmetic computations to demonstrate compliance with clause (3) of thisparagraph) and (y) an Opinion of Counsel, in each case stating that such consolidation,merger or transfer and the relevant supplemental indenture complies with this provisionand that all conditions precedent provided for in the Indenture relating to suchtransaction have been complied with and that the relevant supplemental indenture isenforceable; and

(5) no Rating Decline will have occurred;

provided that this paragraph will not apply to (a) any sale or other disposition that complies withthe “—Certain Covenants—Limitation on Asset Sales” covenant or any Subsidiary Guarantorwhose Subsidiary Guarantee is unconditionally released in accordance with the provisions

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described under “—Future Subsidiary Guarantees—Release of the Subsidiary Guarantees” or (b) aconsolidation or merger of any Subsidiary Guarantor with and into the Parent Guarantor or anyother Subsidiary Guarantor, so long as the Parent Guarantor or such Subsidiary Guarantor survivessuch consolidation or merger.

Upon any consolidation or merger, or any sale, conveyance, transfer, lease, assignment orother disposition of all or substantially all of the properties and assets of the Issuer, the ParentGuarantor or a Subsidiary Guarantor in a transaction that is subject to, and that complies with theprovisions of, this “Consolidation, Merger and Sale of Assets” covenant, the successor Person (tothe Issuer, the Parent Guarantor or the relevant Subsidiary Guarantor, as the case may be) shallsucceed to, and be substituted for (so that from and after the date of such consolidation, merger,sale, conveyance, transfer, lease, assignment or other disposition, the provisions of this Indenturereferring to “Issuer,” “Parent Guarantor” or “Subsidiary Guarantor” (as the case may be) shallrefer instead to the successor Person and not to the predecessor Issuer, the predecessor ParentGuarantor or the relevant predecessor Subsidiary Guarantor (as the case may be) (and thepredecessor Issuer, the predecessor Parent Guarantor or the relevant predecessor SubsidiaryGuarantor shall be relieved from the obligation to pay the principal of, premium on, if any, andinterest on, the Notes under the Indenture, the Notes or the applicable Guarantee), and mayexercise every right and power of the Issuer, the Parent Guarantor or the relevant SubsidiaryGuarantor (as the case may be) under the Indenture with the same effect as if such successorPerson had been named as the Issuer, the Parent Guarantor or a Subsidiary Guarantor (as the casemay be) in the Indenture; provided, however, that the predecessor Issuer, the predecessor ParentGuarantor or the predecessor Subsidiary Guarantor (as the case may be) shall not be relieved fromthe obligation to pay the principal of, premium on, if any, and interest on, the Notes under theIndenture, the Notes or the applicable Guarantee in the case of a lease of all or substantially all ofits properties and assets.

Although there is a limited body of case law interpreting the phrase “substantially all,” thereis no precise established definition of the phrase under applicable law. Accordingly, in certaincircumstances there may be a degree of uncertainty as to whether a particular transaction wouldinvolve “all or substantially all” of the property or assets of a Person.

The foregoing provisions would not necessarily afford Holders protection in the event ofhighly-leveraged or other transactions involving the Parent Guarantor that may adversely affectHolders.

Payments for Consents

The Parent Guarantor will not, and will not permit any of its Subsidiaries to, directly orindirectly, pay or cause to be paid any consideration, whether by way of interest, fee or otherwise,to any Holder for or as an inducement to any consent, waiver or amendment of any of the termsor provisions of the Indenture or the Notes, unless such consideration is offered to be paid or ispaid to all Holders that consent, waive or agree to amend such term or provision within the timeperiod set forth in the solicitation documents relating to such consent, waiver or amendment.

Notwithstanding the foregoing, in any offer or payment of consideration for, or as aninducement to, any consent, waiver or amendment of any of the terms or provisions of theIndenture or the Notes, the Parent Guarantor and any of its Subsidiaries may, to the fullest extentpermitted by applicable laws and regulations, exclude (a) in connection with an exchange offer,holders or beneficial owners of the Notes that are not “qualified institutional buyers” as defined inRule 144A under the Securities Act, and (b) in connection with any consent, waiver or amendment(including the solicitation thereof), holders or beneficial owners of the Notes in any jurisdictionwhere (including as a result of a connected tender or exchange offer) (i) the inclusion of suchholders or beneficial owners would require the Parent Guarantor or any of its Subsidiaries to (A)file a registration statement, prospectus or similar document or subject the Parent Guarantor orany of its Subsidiaries to ongoing periodic reporting or similar requirements under any securitieslaws (including, but not limited to, the United States federal securities laws and the laws of the

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European Union or its member states), (B) qualify as a foreign corporation or other entity as adealer in securities in such jurisdiction if it is not otherwise required to so qualify, or (C)generally consent to service of process in any such jurisdiction, or (ii) the inclusion of suchholders or beneficial owners would subject the Parent Guarantor or any of its RestrictedSubsidiaries to taxation in any such jurisdiction if it is not otherwise so subject, or (iii) suchsolicitation of such consent, waiver or amendment by the Parent Guarantor or its Subsidiaries orthe granting of such consent, waiver or the approval of such amendment by holders or beneficialowners in such jurisdiction, would be unlawful, in each case as determined by the ParentGuarantor in its sole discretion.

Defeasance

Defeasance and Discharge

The Indenture will provide that the Issuer will be deemed to have paid and will bedischarged from any and all obligations in respect of the Notes on the 183rd day after the depositreferred to below and payments of all amounts due to the Trustee, and the provisions of theIndenture will no longer be in effect with respect to the Notes (except for, among other matters,certain obligations to register the transfer or exchange of the Notes, to replace stolen, lost ormutilated Notes, to maintain paying agencies and to hold monies for payment in trust) if, amongother things:

(A) the Issuer has (1) deposited with the Trustee, in trust, cash in U.S. dollars, U.S.Government Obligations or a combination thereof that through the payment of interestand principal in respect thereof in accordance with their terms will provide money in anamount sufficient to pay the principal of, premium, if any, and accrued interest on theNotes on the Stated Maturity of such payments in accordance with the terms of theIndenture and the Notes and (2) delivered to the Trustee a certificate of aninternationally recognized firm of independent accountants to the effect that the amountdeposited by the Issuer is sufficient to provide payment for the principal of, premium, ifany, and accrued interest on, the Notes on the Stated Maturity of such payment inaccordance with the terms of the Indenture and the Notes and an Opinion of Counsel tothe effect that the Holders have a valid, perfected, exclusive security in such trust;

(B) the Issuer has delivered to the Trustee (1) either (x) an Opinion of Counsel ofrecognized international standing with respect to U.S. federal income tax matters whichis based on a change in applicable U.S. federal income tax law occurring after theOriginal Issue Date to the effect that beneficial owners will not recognize income, gainor loss for U.S. federal income tax purposes as a result of the Issuer’s exercise of itsoption under this “—Defeasance—Defeasance and Discharge” provision and will besubject to U.S. federal income tax on the same amount and in the same manner and atthe same time as would have been the case if such deposit, defeasance and dischargehad not occurred or (y) a ruling directed to the Trustee received from the U.S. InternalRevenue Service to the same effect as the aforementioned Opinion of Counsel and (2)an Opinion of Counsel to the effect that the creation of the defeasance trust does notviolate the U.S. Investment Company Act of 1940, as amended, and after the passage of183 days following the deposit, the trust fund will not be subject to the effect ofSection 547 of the United States Bankruptcy Code or Section 15 of the New YorkDebtor and Creditor Law;

(C) the Issuer shall have delivered to the Trustee an Officer’s Certificate stating that thedeposit was not made by it with the intent of preferring the Holders over any other ofits creditors or with the intent of defeating, hindering, delaying or defrauding any otherof its creditors or others; and

(D) immediately after giving effect to such deposit on a pro forma basis, no Event ofDefault, or event that after the giving of notice or lapse of time or both would become

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an Event of Default, will have occurred and be continuing on the date of such depositor during the period ending on the 183rd day after the date of such deposit, and suchdefeasance will not result in a breach or violation of, or constitute a default under, anyother agreement or instrument to which the Parent Guarantor or any of its RestrictedSubsidiaries is a party or by which the Parent Guarantor or any of its RestrictedSubsidiaries is bound.

In the case of either discharge or defeasance of the Notes, the Guarantees will terminate.

Defeasance of Certain Covenants

The Indenture further will provide that the provisions of the Indenture applicable to theNotes will no longer be in effect with respect to clauses (3) and (4) under the third paragraph andfourth paragraph under “—Consolidation, Merger and Sale of Assets” and all the covenantsdescribed herein under “—Certain Covenants” other than as described “—CertainCovenants—Anti-Layering,” clause (c) under “—Events of Default” with respect to such clauses(3) and (4) under the third paragraph and fourth paragraph under “—Consolidation, Merger andSale of Assets” and with respect to the other events set forth in such clause, clause (d) under“—Events of Default” with respect to such other covenants and clauses (e), (f), (i) and (j) under“—Events of Default” will be deemed not to be Events of Default upon, among other things, thedeposit with the Trustee, in trust, of U.S. dollars, U.S. Government Obligations or a combinationthereof that through the payment of interest and principal in respect thereof in accordance withtheir terms will provide money in an amount sufficient to pay the principal of, premium, if any,Additional Amounts, if any, and accrued interest on the Notes on the Stated Maturity of suchpayments in accordance with the terms of the Indenture and the Notes, the satisfaction of theprovisions described in clause (B) (2) and (C) of the preceding paragraph and the delivery by theIssuer to the Trustee of an Opinion of Counsel of recognized international standing with respect toU.S. federal income tax matters to the effect that the beneficial owners of the Notes will notrecognize income, gain or loss for U.S. federal income tax purposes as a result of such depositand defeasance of certain covenants and Events of Default and will be subject to U.S. federalincome tax on the same amount and in the same manner and at the same time as would have beenthe case if such deposit and defeasance had not occurred.

Defeasance and Certain Other Events of Default

If in the event (i) the Issuer exercises its option to omit compliance with certain covenantsand provisions of the Indenture as described in the immediately preceding paragraph and the Notesare declared due and payable because of the occurrence of an Event of Default that remainsapplicable and (ii) the amount of U.S. dollars and/or U.S. Government Obligations on deposit withthe Trustee will be sufficient to pay amounts due on the Notes at the time of their Stated Maturitybut may not be sufficient to pay amounts due on the Notes at the time of the acceleration resultingfrom such Event of Default, the obligations of the Issuer and the Parent Guarantors under theIndenture will be revived and no such defeasance will be deemed to have occurred.

Satisfaction and Discharge

The Indenture will be discharged and will cease to be of further effect (except as tosurviving rights of registration of transfer or exchange of the Notes, as expressly provided for inthe Indenture) as to all outstanding Notes when:

(1) either:

(a) all of the Notes theretofore authenticated and delivered (except lost, stolen ordestroyed Notes which have been replaced or paid and Notes for whose paymentmoney has theretofore been deposited in trust by the Issuer and thereafter repaid tothe Issuer) have been delivered to the Trustee for cancellation; or

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(b) (i) all Notes not previously delivered to the Trustee for cancellation (A) havebecome due and payable, (B) will become due and payable at their Stated Maturitywithin one year or (C) are to be called for redemption within one year underarrangements satisfactory to the Trustee for the giving of notice of redemption bythe Trustee in the name, and at the expense, of the Issuer; and (ii) the Issuer hasirrevocably deposited or caused to be deposited with the Trustee funds, in cash inU.S. dollars or U.S. Government Obligations, or a combination thereof, asapplicable, in an amount sufficient to pay and discharge the entire Indebtedness onthe Notes not previously delivered to the Trustee for cancellation, for principal,premium, if any, and interest to the date of deposit (in the case of Notes that havebecome due and payable), or to the Stated Maturity or redemption date, as the casemay be, together with irrevocable written instructions from the Issuer directing theTrustee to apply such funds to the payment thereof at Statued Maturity or on theredemption date, as the case may be;

(2) the Issuer or any Guarantor has paid all other sums payable under the Indenture; and

(3) such deposit will not result in a breach or violation of, or constitute a default under,any material instruments to which the Issuer or any Guarantor is a party or by whichthe Issuer or any Guarantor is bound, including the Indenture.

In addition, the Parent Guarantor must deliver to the Trustee an Officer’s Certificate and anOpinion of Counsel stating that all conditions precedent to satisfaction and discharge have beensatisfied.

Amendments and Waivers

Amendments Without Consent of Holders

The Indenture, the Notes and the Guarantees may be amended, without the consent of anyHolder of Notes, to:

(1) cure any ambiguity, defect or inconsistency in the Indenture, the Notes or anyGuarantee;

(2) comply with the provisions described under “—Consolidation, Merger and Sale ofAssets”;

(3) evidence and provide for the acceptance of appointment by a successor Trustee orcollateral agent;

(4) release any Guarantor from any Guarantee as provided or permitted by the terms of theIndenture or add any Guarantor or any Guarantee;

(5) add security to secure the Notes or any Guarantee;

(6) provide for the issuance of Additional Notes in accordance with the limitations set forthin the Indenture;

(7) in any other case where a supplemental indenture to the Indenture is required orpermitted to be entered into pursuant to the provisions of the Indenture without theconsent of any Holder;

(8) effect any changes to the Indenture in a manner necessary to comply with theprocedures of DTC;

(9) make any other change that would provide any additional rights or benefits to theHolders or that does not materially and adversely affect the legal rights of any Holderof Notes; or

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(10) conform the text of the Indenture, the Notes or the Guarantees to any provision of this“Description of the Notes” to the extent that such provision in this “Description of theNotes” was intended to be a verbatim recitation of a provision of the Indenture, theNotes or the Guarantees.

Amendments With Consent of Holders

Except as provided below, amendments of the Indenture, the Notes and the Guarantees maybe made by the Issuer, the Parent Guarantor, the Subsidiary Guarantors and the Trustee with theconsent of the Holders of not less than a majority in aggregate principal amount of theoutstanding Notes, and the holders of a majority in principal amount of the outstanding Notes maywaive future compliance by the Issuer, the Parent Guarantor or the Subsidiary Guarantors with anyprovision of the Indenture, the Notes or the Guarantees; provided, however, that no suchmodification, amendment or waiver may, without the consent of each Holder:

(1) change the Stated Maturity of the principal of, or any installment of interest on, anyNote;

(2) reduce the principal amount of, or premium, if any, or interest on, any Note;

(3) change the currency or place of payment of principal of, or premium, if any, or intereston, any Note;

(4) impair the contractual right to institute suit for the enforcement of any payment on orafter the Stated Maturity (or, in the case of a redemption, on or after the redemptiondate) of any Note;

(5) reduce the above stated percentage of outstanding Notes the consent of whose Holdersis necessary to modify or amend the Indenture;

(6) waive a default in the payment of principal of, premium, if any, or interest on theNotes;

(7) release any Guarantor from its Guarantee, except as provided in the Indenture;

(8) reduce the percentage or aggregate principal amount of outstanding Notes the consent ofwhose Holders is necessary for waiver of compliance with certain provisions of theIndenture or for waiver of certain defaults;

(9) amend, change or modify any Guarantee in a manner that adversely affects the Holders,except as provided in the Indenture;

(10) reduce the amount payable upon a Change of Control Offer or an Offer to Purchasewith the Excess Proceeds from any Asset Sale or, change the time or manner by which aChange of Control Offer or an Offer to Purchase with the Excess Proceeds or otherproceeds from any Asset Sale may be made or by which the Notes must be repurchasedpursuant to a Change of Control Offer or an Offer to Purchase with the Excess Proceedsor other proceeds from any Asset Sale;

(11) change the redemption date or the redemption price of the Notes from that stated underthe captions “—Optional Redemption” or “—Redemption for Taxation Reasons”;

(12) amend, change or modify the obligation of the Issuer or any Guarantor to payAdditional Amounts; or

(13) amend, change or modify any provision of the Indenture or the related definitions tocontractually subordinate in right of payment the Notes or any Guarantee to any otherIndebtedness of the Issuer, the Parent Guarantor or any Subsidiary Guarantor (for the

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avoidance of doubt, the Notes and the Guarantees will not be contractually subordinated

in right of payment to any other Indebtedness of the Issuer, the Parent Guarantor or any

Subsidiary Guarantor solely by virtue of being unsecured or by virtue of being secured

on a junior priority basis).

Unclaimed Money

Claims against the Issuer for the payment of principal of, premium, if any, or interest on, and

any Additional Amounts with respect to, the Notes will become void unless presentation for

payment is made as required under the Indenture within a period of six years.

No Personal Liability of Incorporators, Shareholders, Officers, Directors or Employees

No recourse for the payment of the principal of, premium, if any, or interest on any of the

Notes or for any claim based thereon or otherwise in respect thereof, and no recourse under or

upon any obligation, covenant or agreement of the Issuer, the Parent Guarantor or any of the

Subsidiary Guarantors in the Indenture, or in any of the Notes or the Guarantees or because of the

creation of any Indebtedness represented thereby, will be had against any incorporator,

shareholder, officer, commissioners, director, employee or controlling person of the Issuer, the

Parent Guarantor or any of the Subsidiary Guarantors or of any successor Person thereof. Each

Holder, by accepting the Notes, waives and releases all such liability. The waiver and release are

part of the consideration for the issuance of the Notes and the Guarantees. Such waiver may notbe effective to waive liabilities under the applicable securities laws.

Concerning the Trustee and the Paying Agent

The Bank of New York Mellon is to be appointed as Trustee under the Indenture, and TheBank of New York Mellon is to be appointed as registrar (the “Registrar”), transfer and payingagent (the “Paying Agent”) with regard to the Notes. Except during the continuance of a Default,the Trustee will not be liable for any other duties, except for the performance of such duties asare specifically set forth in the Indenture, and no implied covenant or obligation shall be read intothe Indenture or the Notes against the Trustee. If an Event of Default has occurred and iscontinuing, the Trustee will use the same degree of care and skill in its exercise of the rights andpowers vested in it under the Indenture or the Notes as a prudent person would exercise under thecircumstances in the conduct of such person’s own affairs.

The Indenture contains limitations on the rights of the Trustee, should it become a creditor ofthe Issuer, the Parent Guarantor or any of the Subsidiary Guarantors, to obtain payment of claimsin certain cases or to realize on certain property received by it in respect of any such claims, assecurity or otherwise. The Trustee is permitted to engage in other transactions with the ParentGuarantor and its Affiliates; provided, however, that if it acquires any conflicting interest, it musteliminate such conflict or resign.

The Trustee will be under no obligation to exercise any rights or powers conferred under theIndenture or the Notes for the benefit of the Holders unless such Holders have instructed theTrustee in writing and offered to the Trustee indemnity and/or security satisfactory to the Trusteeagainst any loss, liability or expense. In the exercise of its duties, the Trustee shall not beresponsible for the verification of the accuracy or completeness of any certification, opinion orother documents submitted to it by the Issuer or the Parent Guarantor and is entitled to relyexclusively on the information contained therein. Notwithstanding anything described herein, theTrustee has no duty to monitor the performance or compliance of the Issuer, the Parent Guarantoror any Restricted Subsidiary in the fulfilment of their respective obligations under the Indentureand the Notes.

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Book-Entry; Delivery and Form

The certificates representing the Notes will be issued in fully registered form without interestcoupons, Notes sold in offshore transactions in reliance on Regulation S under the Securities Actwill initially be represented by one or more permanent global notes in definitive, fully registeredform without interest coupons (each a “Regulation S Global Note”) and will be deposited with TheBank of New York Mellon as custodian for, and registered in the name of a nominee of, DTC forthe accounts of Euroclear and Clearstream.

Notes sold in reliance on Rule 144A will be represented by one or more permanent globalnotes in definitive, fully registered form without interest coupons (each a “Rule 144A GlobalNote”; and together with the Regulation S Global Notes, the “Global Notes”) and will bedeposited with The Bank of New York Mellon as custodian for, and registered in the name of anominee of, DTC.

Each Global Note (and any Notes issued for exchange therefor) will be subject to certainrestrictions on transfer set forth therein as described under “Transfer Restrictions.”

Notes transferred to institutional “accredited investors” (as defined in Rule 501(a) (1), (2),(3) or (7) of Regulation D under the Securities Act (an “Institutional Accredited Investor”)) whoare not qualified institutional buyers (“Non-Global Purchasers”) will be in registered form withoutinterest coupons (“Certificated Notes”). Upon the transfer of Certificated Notes initially issued toa Non-Global Purchaser to a qualified institutional buyer or in accordance with Regulation S, suchCertificated Notes will, unless the relevant Global Note has previously been exchanged in wholefor Certificated Notes, be exchanged for an interest in a Global Note. For a description of therestrictions on the transfer of Certificated Notes, see “Transfer Restrictions.”

Ownership of beneficial interests in a Global Note will be limited to persons who haveaccounts with DTC (“participants”) or persons who hold interests through participants. Ownershipof beneficial interests in a Global Note will be shown on, and the transfer of that ownership willbe effected only through, records maintained by DTC or its nominee (with respect to interests ofparticipants) and the records of participants (with respect to interests of persons other thanparticipants). Beneficial owners may hold their interests in a Global Note directly through DTC ifthey are participants in such system, or indirectly through organizations which are participants insuch system.

Euroclear and Clearstream will hold interests in the Global Notes on behalf of theirparticipants through DTC.

So long as DTC, or its nominee, is the registered owner or holder of a Global Note, DTC orsuch nominee, as the case may be, will be considered the sole owner or holder of the Notesrepresented by such Global Note for all purposes under the Indenture and the Notes. No beneficialowner of an interest in a Global Note will be able to transfer that interest except in accordancewith DTC’s applicable procedures, in addition to those provided for under the Indenture and, ifapplicable, those of Euroclear and Clearstream.

Payments of the principal of, and interest on, a Global Note will be made to DTC or itsnominee, as the case may be, as the registered owner thereof. Neither the Issuer, the ParentGuarantor nor any of the Subsidiary Guarantors, the Trustee, the Registrar nor the Paying Agentwill have any responsibility or liability for any aspect of the records relating to or payments madeon account of beneficial ownership interests in a Global Note or for maintaining, supervising orreviewing any records relating to such beneficial ownership interests.

The Issuer expects that DTC or its nominee, upon receipt of any payment of principal orinterest in respect of a Global Note, will credit participants’ accounts with payments in amountsproportionate to their respective beneficial interests in the principal amount of such Global Noteas shown on the records of DTC or its nominee. The Issuer also expects that payments by

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participants to owners of beneficial interests in such Global Note held through such participantswill be governed by standing instructions and customary practices, as is now the case withsecurities held for the accounts of customers registered in the names of nominees for suchcustomers. Such payments will be the responsibility of such participants.

The Issuer expects that DTC will take any action permitted to be taken by a holder of Notes(including the presentation of Notes for exchange as described below) only at the direction of oneor more participants to whose account the DTC interests in a Global Note is credited and only inrespect of such portion of the aggregate principal amount of Notes as to which such participant orparticipants has or have given such direction. However, if there is an Event of Default under theNotes, DTC will exchange the applicable Global Note for Certificated Notes, which it willdistribute to its participants and which may be legended as set forth under the heading “TransferRestrictions.”

Although DTC, Euroclear and Clearstream are expected to follow the foregoing procedures inorder to facilitate transfers of interests in a Global Note among participants of DTC, Euroclearand Clearstream, they are under no obligation to perform or continue to perform such procedures,and such procedures may be discontinued at any time. None of the Issuer, the Parent Guarantor,any of the Subsidiary Guarantors, the Trustee, the Registrar or the Paying Agent will have anyresponsibility for the performance by DTC, Euroclear or Clearstream or their respectiveparticipants or indirect participants of their respective obligations under the rules and proceduresgoverning their operations.

If DTC is at any time unwilling or unable to continue as a depositary for the Global Notesand a successor depositary is not appointed by the Issuer within 90 days, the Issuer will issueCertificated Notes in registered form, which may bear the legend referred to under “TransferRestrictions,” in exchange for the Global Notes. Holders of an interest in a Global Note mayreceive Certificated Notes, which may bear the legend referred to under “Transfer Restrictions,” inaccordance with the DTC’s rules and procedures in addition to those provided for under theIndenture.

The Clearing Systems

General

DTC, Euroclear and Clearstream have advised the Issuer as follows:

DTC. DTC is a limited-purpose trust company organized under the laws of the State of NewYork, a “banking organization” within the meaning of New York Banking Law, a member of theFederal Reserve System, a “clearing corporation” within the meaning of the New York UniformCommercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A ofthe Exchange Act. DTC was created to hold securities of its participants and to facilitate theclearance and settlement of securities transactions among its participants in such securities throughelectronic book-entry changes in accounts of its participants, thereby eliminating the need forphysical movement of securities certificates. DTC’s participants include securities brokers anddealers, banks, trust companies, clearing corporations, and certain other organizations, some ofwhom own DTC, and may include the initial purchaser. Indirect access to the DTC system is alsoavailable to others that clear through or maintain a custodial relationship with a DTC participant,either directly or indirectly (“indirect participants”). Transfers of ownership or other interests inNotes in DTC may be made only through DTC participants. In addition, beneficial owners ofNotes in DTC will receive all distributions of principal of and interest on the Notes from theTrustee through such DTC participant.

Euroclear and Clearstream. Euroclear and Clearstream hold securities for participatingorganizations and facilitate the clearance and settlement of securities transactions between theirrespective participants through electronic book-entry changes in accounts of such participants.Euroclear and Clearstream provide to their participants, among other things, services for

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safekeeping, administration, clearance and settlement of internationally-traded securities andsecurities lending and borrowing. Euroclear and Clearstream interface with domestic securitiesmarkets. Euroclear and Clearstream participants are financial institutions such as underwriters,securities brokers and dealers, banks, trust companies and certain other organizations. Indirectaccess to Euroclear or Clearstream is also available to others such as banks, brokers, dealers andtrust companies that clear through or maintain a custodial relationship with a Euroclear orClearstream participant, either directly or indirectly.

Initial Settlement

Investors’ interests in Notes held in book-entry form by DTC will be represented throughfinancial institutions acting on their behalf as direct and indirect participants in DTC. As a result,Euroclear and Clearstream will hold positions on behalf of their participants through DTC.

Investors electing to hold their Notes through DTC (other than through accounts at Euroclearor Clearstream) must follow the settlement practices applicable to United States corporate debtobligations. The securities custody accounts of investors will be credited with their holdingsagainst payment in same day funds on the settlement date.

Investors electing to hold their Notes through Euroclear or Clearstream accounts will followthe settlement procedures applicable to conventional Eurobonds in registered form. Notes will becredited to the securities custody accounts of Euroclear Holders and of Clearstream Holders on theBusiness Day following the settlement date against payment for value on the settlement date.

Secondary Market Trading

Secondary market trading between DTC participants will occur in the ordinary way inaccordance with DTC rules. Secondary market trading between Clearstream participants and/orEuroclear participants will occur in the ordinary way in accordance with the applicable rules andoperating procedures of Clearstream and Euroclear and will be settled using the proceduresapplicable to conventional eurobonds.

Cross-market transfers between persons holding directly or indirectly through DTC, on theone hand, and directly or indirectly through Clearstream participants or Euroclear participants, onthe other, will be effected in DTC in accordance with DTC rules on behalf of the relevantEuropean international clearing system by its U.S. depositary; however, such cross-markettransactions will require delivery of instructions to the relevant European international clearingsystem by the counterparty in such system in accordance with its rules and procedures and withinits established deadlines (European time). The relevant European international clearing systemwill, if a transaction meets its settlement requirements, deliver instructions to its U.S. depositaryto take action to effect final settlement on its behalf by delivering or receiving Notes in DTC, andmaking or receiving payment in accordance with normal procedures for same-day funds settlementapplicable to DTC. Clearstream participants and Euroclear participants may not deliverinstructions directly to the U.S. depositaries.

Because of time zone differences, credits of Notes received in Clearstream or Euroclear as aresult of a transaction with a DTC participant will be made during subsequent securities settlementprocessing and dated the Business Day following the DTC settlement date. Such credits or anytransactions in such Notes settled during such processing will be reported to the relevantClearstream participants or Euroclear participants on such Business Day. Cash received inClearstream or Euroclear as a result of sales of Notes by or through a Clearstream participant or aEuroclear participant to a DTC participant will be received with value on the DTC settlement datebut will be available in the relevant Clearstream or Euroclear cash account only as of the BusinessDay following settlement in DTC.

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Notices

All notices or demands required or permitted by the terms of the Notes or the Indenture to begiven to or by the Holders are required to be in writing (in English) and may be given or servedby being sent by prepaid courier or by being deposited, first-class postage prepaid, in the UnitedStates mails (if intended for the Issuer, the Parent Guarantor or any Subsidiary Guarantor or theTrustee) addressed to the Issuer, the Parent Guarantor, such Subsidiary Guarantor or the Trustee,as the case may be, at the corporate trust office of the Trustee; and (if intended for any Holder)addressed to such Holder at such Holder’s last address as it appears in the Note register.

Any such notice or demand will be deemed to have been sufficiently given or served when sosent or deposited and, if to the Holders, when delivered in accordance with the applicable rulesand procedures of DTC. Any such notice will be deemed to have been delivered on the day suchnotice is delivered to DTC or if by mail, when so sent or deposited.

Consent to Jurisdiction; Service of Process

The Issuer, the Parent Guarantor and each of the Subsidiary Guarantors will irrevocably (i)submit to the non-exclusive jurisdiction of any U.S. federal or New York state court located in theBorough of Manhattan, The City of New York in connection with any suit, action or proceedingarising out of, or relating to, the Notes, any Guarantee or the Indenture or any transactioncontemplated thereby and (ii) designate and appoint Law Debenture Corporate Services Inc. forreceipt of service of process in any such suit, action or proceeding.

Governing Law

Each of the Notes, the Parent Guarantee and the Indenture provides that such instrument willbe governed by, and construed in accordance with, the laws of the State of New York.

Definitions

Set forth below are defined terms used in the covenants and other provisions of theIndenture. Reference is made to the Indenture for other capitalized terms used in this “Descriptionof the Notes” for which no definition is provided.

“2019 Indenture” means the indenture, dated February 21, 2012, among the Issuer, the ParentGuarantor, as guarantor, and the Trustee.

“2019 Notes” means the notes issued by the Issuer under the 2019 Indenture.

“Acquired Indebtedness” means Indebtedness of a Person existing at the time such Personbecomes a Restricted Subsidiary or Indebtedness of a Restricted Subsidiary assumed in connectionwith an Asset Acquisition by such Restricted Subsidiary, whether or not Incurred in connectionwith, or in contemplation of, the Person merging with or into or becoming a Restricted Subsidiaryor such Asset Acquisition.

“Affiliate” means, with respect to any Person, any other Person (i) directly or indirectlycontrolling, controlled by, or under direct or indirect common control with, such Person or (ii)who is a director, commissioner or officer of such Person or any Subsidiary of such Person or ofany Person referred to in clause (i) of this definition. For purposes of this definition, “control”(including, with correlative meanings, the terms “controlling,” “controlled by” and “under commoncontrol with”), as applied to any Person, means the possession, directly or indirectly, of the powerto direct or cause the direction of the management and policies of such Person, whether throughthe ownership of voting securities, by contract or otherwise.

“Applicable Premium” means, with respect to a Note at any redemption date, the greater of(1) 1.00% of the principal amount of such Note and (2) the excess of (A) the present value atsuch redemption date of the redemption price of such Note on September 14, 2021 (such

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redemption price being described in the first paragraph in the “— Optional Redemption” sectionexclusive of any accrued interest), plus all required remaining scheduled interest payments due onsuch Note through September 14, 2021 (but excluding accrued and unpaid interest to theredemption date), computed using a discount rate equal to the Treasury Rate plus 50 basis points,over (B) the principal amount of such Note on such redemption date.

“Asset Acquisition” means (1) an Investment by the Parent Guarantor or any of its RestrictedSubsidiaries in any other Person pursuant to which such Person will become a RestrictedSubsidiary or will be merged into or consolidated with the Parent Guarantor or any of itsRestricted Subsidiaries, or (2) an acquisition by the Parent Guarantor or any of its RestrictedSubsidiaries of the property and assets of any Person other than the Parent Guarantor or any of itsRestricted Subsidiaries that constitute substantially all of a division or line of business of suchPerson.

“Asset Disposition” means the sale or other disposition by the Parent Guarantor or any of itsRestricted Subsidiaries (other than to the Parent Guarantor or another Restricted Subsidiary) of (1)all or substantially all of the Capital Stock of any Restricted Subsidiary or (2) all or substantiallyall of the assets that constitute a division or line of business of the Parent Guarantor or any of itsRestricted Subsidiaries.

“Asset Sale” means any sale, transfer or other disposition (including by way of merger,consolidation or Sale and Leaseback Transaction) of any of its property or assets (including anysale or issuance of Capital Stock by a Restricted Subsidiary) in one transaction or a series ofrelated transactions by the Parent Guarantor or any Restricted Subsidiary to any Person other thanthe Parent Guarantor or any Restricted Subsidiary; provided that “Asset Sale” will not include:

(a) sales, transfers or other dispositions of inventory, electricity, receivables and othercurrent assets in the ordinary course of business;

(b) sales, transfers or other dispositions of assets constituting a Permitted Investment orRestricted Payment permitted to be made under the “—Certain Covenants—Limitationon Restricted Payments” covenant;

(c) sales, transfers or other dispositions of assets with a Fair Market Value not in excess ofUS$5.0 million (or the Dollar Equivalent thereof) in any transaction or series of relatedtransactions;

(d) any sale, transfer or other disposition of any property or equipment that has becomedamaged, worn out, obsolete, unused, unuseful or otherwise unsuitable for use inconnection with the business of the Parent Guarantor or its Restricted Subsidiaries;

(e) any, transfer or other disposition deemed to occur in connection with creating orgranting any Permitted Lien;

(f) a transaction covered by the covenant under the caption “—Consolidation, Merger andSale of Assets” or a transaction constituting a Change of Control;

(g) any sale, transfer or other disposition of assets (including issuances of Capital Stock inthe case of a Restricted Subsidiary) by the Parent Guarantor or any RestrictedSubsidiary to the Parent Guarantor or a Restricted Subsidiary;

(h) a sale or other disposition of cash or Temporary Cash Investments in the ordinarycourse of business;

(i) dispositions of receivables in connection with the compromise, settlement or collectionthereof in the ordinary course of business or in bankruptcy or similar proceedings andexclusive of any factoring or similar arrangements;

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(j) any surrender or waiver of contract rights or settlement, release, recovery on orsurrender of contract, tort or other claims of any kind;

(k) any transfer, termination, unwinding or other disposition of Hedging Obligations;

(l) any sale, transfer or other disposition of Investments in joint ventures to the extentrequired by, or made pursuant to, customary buy/sell arrangements between jointventure parties set forth in joint venture arrangements or similar binding arrangements;provided that any Net Cash Proceeds from any such sale, transfer or other dispositionshall be applied in accordance with the covenant described under the caption“Limitation on Asset Sales”; and

(m) execution and performance of, and the transfer of any assets or property pursuant to,any BOT Agreement, and the grant of any management, operation or similar rights withrespect to any property in the ordinary course of the Permitted Business.

“Attributable Indebtedness” means, in respect of a Sale and Leaseback Transaction, thepresent value at the time of determination, discounted at the interest rate implicit in the Sale andLeaseback Transaction, of the total obligations of the lessee for rental payments during theremaining term of the lease in the Sale and Leaseback Transaction, including any period for whichsuch lease has been extended or may, at the option of lessor, be extended, determined inaccordance with GAAP; provided, however, that if such Sale and Leaseback Transaction results inCapitalized Lease Obligation, the amount of Indebtedness represented thereby will be determinedin accordance with the definition of “Capitalized Lease Obligation.”

“Average Life” means, at any date of determination with respect to any Indebtedness, thequotient obtained by dividing (1) the sum of the products of (a) the number of years from suchdate of determination to the dates of each successive scheduled principal payment of suchIndebtedness and (b) the amount of such principal payment by (2) the sum of all such principalpayments.

“Board of Directors” means the board of directors of the Parent Guarantor elected orappointed by the stockholders of the Parent Guarantor to manage the business of the ParentGuarantor or any committee of such board duly authorized to take the action purported to be takenby such committee.

“Board Resolution” means any resolution of the Board of Directors taking an action which itis authorized to take and adopted at a meeting duly called and held at which a quorum ofdisinterested members (if so required) was present and acting throughout or adopted by writtenresolution executed by a majority of the Board of Directors.

“BOT Agreement” means a build-operate-transfer or build-operate-own-transfer agreement orsimilar agreement (by whatever name) between the Parent Guarantor or any Restricted Subsidiaryand an Indonesian Governmental Instrumentality or a third party that is controlled by anIndonesian Governmental Instrumentality, under which the Parent Guarantor or such RestrictedSubsidiary agrees to design, develop, manage and/or operate an asset or project (in each case, thatis, or is reasonably related, ancillary or complementary to, a development project of the ParentGuarantor or any Restricted Subsidiary) for a period of time and at the end of such period totransfer such asset or project to such Indonesian Governmental Instrumentality or third party.

“Business Day” means any day which is not a Saturday, Sunday, legal holiday or other dayon which banking institutions in The City of New York, Hong Kong, Singapore or Indonesia (or inany other place in which payments on the Notes are to be made) are authorized by law orgovernmental regulation to close; provided that, solely for purposes of determining the date of anypayment to be made on any Note, “Business Day” means any day which is not a Saturday, Sunday,legal holiday or other day on which banking institutions in the City of New York or Hong Kong(or in any other place in which payments on the Notes are to be made) are authorized by law orgovernmental regulation to close.

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“Capital Stock” means, with respect to any Person, any and all shares, interests,participations or other equivalents (however designated, whether voting or non-voting) in equity ofsuch Person, whether outstanding on the Original Issue Date or issued thereafter, including,without limitation, all Common Stock and Preferred Stock but excluding debt securitiesconvertible into such equity.

“Capitalized Lease” means, with respect to any Person, any lease of any property (whetherreal, personal or mixed), which, in conformity with GAAP, is required to be capitalized on thestatement of financial position of such Person.

“Capitalized Lease Obligations” means the discounted present value of the rental obligationsunder a Capitalized Lease.

“Change of Control” means the occurrence of one or more of the following events:

(1) the merger, amalgamation, or consolidation of the Parent Guarantor with or into anotherPerson or the merger or amalgamation of another Person with or into the ParentGuarantor, or the sale of all or substantially all the assets of the Parent Guarantor toanother Person, in each case, other than Permitted Holders;

(2) the Permitted Holders are the beneficial owners of less than 35.0% of the total votingpower of the Voting Stock of the Parent Guarantor;

(3) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of theExchange Act) is or becomes the “beneficial owner” (as such term is used in Rule 13d-3of the Exchange Act), directly or indirectly, of the total voting power of the VotingStock of the Parent Guarantor greater than such total voting power held beneficially bythe Permitted Holders;

(4) individuals who on the Original Issue Date constituted the Board of Directors, togetherwith any new directors whose election was approved by the Permitted Holders holdingno less than 50.1% of the total voting power of the Voting Stock of the ParentGuarantor, cease for any reason to constitute a majority of the Board of Directors thenin office; or

(5) the adoption of a plan relating to the liquidation or dissolution of the Parent Guarantor.

“Change of Control Triggering Event” means the occurrence of both a Change of Controland, for so long as the Notes are rated by one or more Rating Agencies, Rating Decline.

“Clearstream” means Clearstream Banking S.A., Luxembourg or any successor thereof.

“Commodity Agreement” means any spot, forward or futures contract, commodity swapagreement, commodity price protection, cap or floor agreement, commodity option agreement orother similar agreement or arrangement.

“Common Stock” means, with respect to any Person, any and all shares, interests or otherparticipations in, and other equivalents (however designated and whether voting or non-voting) ofsuch Person’s common stock or ordinary shares, whether or not outstanding on the Original IssueDate, and include, without limitation, all series and classes of such common stock or ordinaryshares.

“Comparable Treasury Issue” means the U.S. Treasury security having a maturity comparableto September 14, 2021 that would be utilized, at the time of selection and in accordance withcustomary financial practice, in pricing new issues of corporate debt securities of comparablematurity to September 14, 2021.

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“Comparable Treasury Price” means, with respect to any redemption date, if clause (ii) of theTreasury Rate is applicable, the average of three (or such lesser number as is obtained by theIssuer) Reference Treasury Dealer Quotations for such redemption date.

“Consolidated EBITDA” means, for any period, Consolidated Net Income for such periodplus, to the extent such amount was deducted in calculating such Consolidated Net Income:

(1) Consolidated Interest Expense;

(2) income taxes (other than income taxes attributable to extraordinary and non-recurringgains (or losses) or sales of assets);

(3) depreciation expense;

(4) amortization expense;

(5) all other non-cash items reducing Consolidated Net Income (other than non-cash itemsin a period which reflect cash expenses paid or to be paid in another period), less allnon-cash items increasing Consolidated Net Income (other than accrual of revenue inthe ordinary course of business);

(6) any losses arising from the acquisition of any securities or extinguishment, repurchase,cancellation or assignment of Indebtedness; and

(7) charges or expenses (other than depreciation or amortization expense) related todeferred financing fees and Indebtedness issuance costs (provided such Indebtedness ispermitted to be incurred by the Indenture), including related commissions, fees andexpenses;

all as determined on a consolidated basis for the Parent Guarantor and its Restricted Subsidiariesin conformity with GAAP; provided that if any Restricted Subsidiary is not a Wholly OwnedRestricted Subsidiary, Consolidated EBITDA will be reduced (to the extent not otherwise reducedin accordance with GAAP) by an amount equal to (A) the amount of the Consolidated Net Incomeattributable to such Restricted Subsidiary multiplied by (B) the percentage ownership interest inthe income of such Restricted Subsidiary not owned on the last day of such period by the ParentGuarantor or any Restricted Subsidiary.

“Consolidated Fixed Charges” means, for any period, the sum (without duplication) of (i)Consolidated Interest Expense for such period and (ii) all cash and non-cash dividends paid,declared, accrued or accumulated during such period on any Disqualified Stock or Preferred Stockof the Parent Guarantor or any Restricted Subsidiary held by Persons other than the ParentGuarantor or any Restricted Subsidiary, except for dividends payable in the Parent Guarantor’sCapital Stock (other than Disqualified Stock); provided that dividends declared, accrued oraccounted for in one period shall not be included in “Consolidated Fixed Charges” of a laterperiod when subsequently paid in such later period).

“Consolidated Interest Expense” means, for any period, the amount that would be included ingross interest expense on a consolidated statement of comprehensive income prepared inaccordance with GAAP for such period of the Parent Guarantor and its Restricted Subsidiaries,plus, to the extent not included in such gross interest expense, and to the extent incurred, accruedor payable during such period by the Parent Guarantor and its Restricted Subsidiaries, withoutduplication, (i) interest expense attributable to Capitalized Lease Obligations, (ii) amortization ofcharges or expenses (including commissions, fees and expenses) relating to debt issuance costsand original issue discount expense and non-cash interest payments in respect of any Indebtedness,(iii) the interest portion of any deferred payment obligation, (iv) all commissions, discounts andother fees and charges with respect to letters of credit or similar instruments issued for financingpurposes or in respect of any Indebtedness, (v) the net costs associated with Hedging Obligations(including the amortization of fees), (vi) interest accruing on Indebtedness of any other Person

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that is guaranteed by the Parent Guarantor or any Restricted Subsidiary or secured by a Lien onassets of the Parent Guarantor or any Restricted Subsidiary, proportionate to the extent that suchIndebtedness is guaranteed or secured, (vii) any capitalized interest and (viii) all other non-cashinterest expense.

“Consolidated Net Income” means, with respect to any specified Person for any period, theaggregate of the profit (or loss) for the period of such Person and its Restricted Subsidiaries forsuch period, on a consolidated basis, determined in conformity with GAAP; provided that thefollowing items will be excluded in computing Consolidated Net Income (without duplication):

(1) the net income (or loss) of any Person that is not a Restricted Subsidiary or that isaccounted for by the equity method of accounting except to the extent of the amount ofnet income actually paid in cash to, or the amount of loss actually funded in cash by,the specified Person or a Restricted Subsidiary of the Person during such period;

(2) the net income (or loss) of any Person accrued prior to the date it becomes a RestrictedSubsidiary or is merged into or consolidated with the Parent Guarantor or anyRestricted Subsidiary or all or substantially all of the property and assets of suchPerson are acquired by the Parent Guarantor or any Restricted Subsidiary;

(3) the net income (but not loss) of any Restricted Subsidiary to the extent that thedeclaration or payment of dividends or similar distributions by such RestrictedSubsidiary of such net income is not at the time permitted by the operation of the termsof its charter, articles of association or other similar constitutive documents or anyagreement, instrument, judgment, decree, order, statute, rule or governmental regulationapplicable to such Restricted Subsidiary;

(4) the cumulative effect of a change in accounting principles;

(5) any net after tax gains or losses realized on the sale or other disposition of (A) anyproperty or assets of the Parent Guarantor or any Restricted Subsidiary which is notsold in the ordinary course of business or (B) any Capital Stock of any Person(including any gains or losses by the Parent Guarantor realized on sales of CapitalStock of the Parent Guarantor or any Restricted Subsidiary);

(6) any translation gains or losses due solely to fluctuations in currency values and relatedtax effects; and

(7) any net after-tax extraordinary or non-recurring gains or losses.

“Currency Agreement” means any foreign exchange forward contract, currency swapagreement, currency cap or floor agreement, currency hedge agreement currency option agreementor other similar agreement or arrangement.

“Default” means any event that is, or after notice or passage of time or both would be, anEvent of Default.

“Disqualified Stock” means any class or series of Capital Stock of any Person that by itsterms or otherwise is (1) required to be redeemed on or prior to the date that is 366 days after theStated Maturity of the Notes, (2) redeemable at the option of the holder of such class or series ofCapital Stock at any on or prior to the date that is 366 days after the Stated Maturity of the Notesor (3) convertible into or exchangeable for Capital Stock referred to in clause (1) or (2) above orIndebtedness having a scheduled maturity on or prior to the date that is 366 days after the StatedMaturity of the Notes; provided that any Capital Stock that would not constitute DisqualifiedStock but for provisions thereof giving holders thereof the right to require such Person torepurchase or redeem such Capital Stock upon the occurrence of an “asset sale” or “change ofcontrol” occurring prior to the Stated Maturity of the Notes will not constitute Disqualified Stockif the “asset sale” or “change of control” provisions applicable to such Capital Stock are no more

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favorable to the holders of such Capital Stock than the provisions contained in “—CertainCovenants—Limitation on Asset Sales” and “—Repurchase of Notes Upon a Change of ControlTriggering Event” covenants and such Capital Stock specifically provides that such Person will notrepurchase or redeem any such stock pursuant to such provision prior to the Issuer’s repurchase ofsuch Notes as are required to be repurchased pursuant to the “—Certain Covenants—Limitation onAsset Sales” and “—Repurchase of Notes Upon a Change of Control Triggering Event” covenants.

“Dollar Equivalent” means, with respect to any monetary amount in a currency other thanU.S. dollars, at any time for the determination thereof, the amount of U.S. dollars obtained byconverting such foreign currency involved in such computation into U.S. dollars at the base ratefor the purchase of U.S. dollars with the applicable foreign currency as quoted by the FederalReserve Bank of New York on the date of determination.

“DTC” means The Depository Trust Company and its successors.

“Equity Offering” means any public or private offering or any other sales of Common Stockof the Parent Guarantor or any direct or indirect parent of the Parent Guarantor (the proceeds ofwhich have been transferred to the Parent Guarantor) after the Original Issue Date; provided thatthe aggregate gross cash proceeds received by or transferred to the Parent Guarantor from suchoffering or sales will be no less than US$25.0 million (or the Dollar Equivalent thereof).

“Euroclear” means Euroclear Bank S.A./N.V., or any successor thereof.

“Fair Market Value” means the price that would be paid in an arm’s-length transactionbetween an informed and willing seller under no compulsion to sell and an informed and willingbuyer under no compulsion to buy, as determined in good faith by the Board of Directors, whosedetermination will be conclusive if evidenced by a Board Resolution.

“Finance Subsidiary” means a Wholly Owned Restricted Subsidiary of the Parent Guarantoror another Finance Subsidiary (other than the Issuer and Signal Capital) (i) the operations ofwhich are primarily comprised of Incurring Indebtedness to Persons other than the ParentGuarantor or any of its Subsidiaries from time to time to finance the operations of the ParentGuarantor and/or its Restricted Subsidiaries and other activities incidental, related to or ancillaryto such operations, including activities related to the establishment or maintenance of its corporateexistence; and (ii) which conducts no business and owns no material assets other than (w) anyequity interests in another Finance Subsidiary or equity interests of a Wholly Owned RestrictedSubsidiary (a “FS Subsidiary”) of it organized outside of Indonesia that on lends the proceeds ofany Indebtedness Incurred by the Finance Subsidiary to the Parent Guarantor or any of itsRestricted Subsidiaries, (x) intercompany loans or other securities representing the proceeds ofIndebtedness described in clause (i), (y) any such debt obligations upon a repurchase, redemptionor other acquisition thereof and prior to cancellation thereof, and (z) cash or Temporary CashInvestments held for purposes similar to those for which the Issuer is permitted to hold cash andTemporary Cash Investments under the covenant “Certain Covenants—Limitation on the Activitiesof the Issuer.”

“Fitch” means Fitch Inc., a subsidiary of Fimalac, S.A., and its successors.

“Fixed Charge Coverage Ratio” means, on any Transaction Date, the ratio of (1) theaggregate amount of Consolidated EBITDA for the Four Quarter Period with respect to suchTransaction Date to (2) the aggregate Consolidated Fixed Charges during such Four QuarterPeriod. In making the foregoing calculation:

(A) pro forma effect will be given to any Indebtedness or Preferred Stock Incurred, repaidor redeemed during the Reference Period relating to such Four Quarter Period in eachcase as if such Indebtedness or Preferred Stock had been Incurred, repaid or redeemedon the first day of such Reference Period; provided that, in the event of any such

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repayment or redemption, Consolidated EBITDA for such period will be calculated as ifthe Parent Guarantor or such Restricted Subsidiary had not earned any interest incomeactually earned during such period in respect of the funds used to repay suchIndebtedness;

(B) Consolidated Interest Expense attributable to interest on any Indebtedness (whetherexisting or being Incurred) computed on a pro forma basis and bearing a floatinginterest rate will be computed as if the rate in effect on the Transaction Date (takinginto account any Interest Rate Agreement applicable to such Indebtedness if suchInterest Rate Agreement has a remaining term in excess of 12 months or, if shorter, atleast equal to the remaining term of such Indebtedness) had been the applicable rate forthe entire period;

(C) pro forma effect will be given to the creation, designation or redesignation of Restrictedand Unrestricted Subsidiaries during the Reference Period;

(D) pro forma effect will be given to Asset Dispositions and Asset Acquisitions (includinggiving pro forma effect to the application of proceeds of any Asset Disposition) thatoccur during such Reference Period as if they had occurred and such proceeds had beenapplied on the first day of such Reference Period; and

(E) pro forma effect will be given to asset dispositions and asset acquisitions (includinggiving pro forma effect to the application of proceeds of any asset disposition) thathave been made by any Person that has become a Restricted Subsidiary or has beenmerged with or into the Parent Guarantor or any Restricted Subsidiary during suchReference Period and that would have constituted Asset Dispositions or AssetAcquisitions had such transactions occurred when such Person was a RestrictedSubsidiary as if such asset dispositions or asset acquisitions were Asset Dispositions orAsset Acquisitions that occurred on the first day of such Reference Period;

provided that to the extent that clause (D) or (E) of this sentence requires that pro forma effect begiven to an Asset Acquisition or Asset Disposition (or asset acquisition or asset disposition), suchpro forma calculation will be based upon the Four Quarter Period immediately preceding theTransaction Date of the Person, or division or line of business of the Person, that is acquired ordisposed for which financial information is available.

“Four Quarter Period” means, as of any Transaction Date, the then most recent four fiscalquarters prior to such Transaction Date for which consolidated financial statements of the ParentGuarantor (which may be internal financial statements) are available.

“GAAP” means generally accepted accounting principles in Indonesia as in effect from timeto time.

“Governmental Instrumentality” means any national, state or local government (whetherdomestic or foreign), any political subdivision thereof or any other governmental,quasi-governmental, judicial, public or statutory instrumentality, authority, body, agency, court,tribunal, commission, bureau or entity or any arbitrator with authority to bind a party at law.

“guarantee” means any obligation, contingent or otherwise, of any Person directly orindirectly guaranteeing any Indebtedness or other obligation of any other Person and, withoutlimiting the generality of the foregoing, any obligation, direct or indirect, contingent or otherwise,of such Person (1) to purchase or pay (or advance or supply funds for the purchase or payment of)such Indebtedness or other obligation of such other Person (whether arising by virtue ofpartnership arrangements, or by agreements to keep-well, to purchase assets, goods, securities orservices, to take-or-pay, or to maintain financial statement conditions or otherwise) or (2) enteredinto for purposes of assuring in any other manner the obligee of such Indebtedness or other

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obligation of the payment thereof or to protect such obligee against loss in respect thereof (inwhole or in part); provided that the term “guarantee” will not include endorsements for collectionor deposit in the ordinary course of business. The term “guarantee” used as a verb has acorresponding meaning.

“Hedging Agreement” means any Currency Agreement, Commodity Agreement or InterestRate Agreement.

“Hedging Obligation” of any Person means the obligations of such Person pursuant to anyHedging Agreement.

“Holder” means the Person in whose name a Note is registered in the Note register.

“Incur” means, with respect to any Indebtedness or Capital Stock, to incur, create, issue,assume, guarantee or otherwise become liable for or with respect to, or become responsible for,the payment of, contingently or otherwise, such Indebtedness or Capital Stock; provided that (1)any Indebtedness and Capital Stock of a Person existing at the time such Person becomes aRestricted Subsidiary (or fails to meet the qualifications necessary to remain an UnrestrictedSubsidiary) will be deemed to be Incurred by such Restricted Subsidiary at the time it becomes aRestricted Subsidiary and (2) the accretion of original issue discount, the accrual of interest, theaccrual of dividends, the payment of interest in the form of additional Indebtedness, thereclassification of Preferred Stock as Indebtedness due to a change in accounting principles andthe payment of dividends on Preferred Stock or Disqualified Stock in the form of additional sharesof Preferred Stock or Disqualified Stock (to the extent provided for when the Indebtedness,Preferred Stock or Disqualified Stock on which such interest or dividend is paid was originallyissued) will not be considered an Incurrence of Indebtedness. The terms “Incurrence,” “Incurred”and “Incurring” have meanings correlative with the foregoing.

“Indebtedness” means, with respect to any Person at any date of determination (withoutduplication):

(1) all indebtedness of such Person for borrowed money;

(2) all obligations of such Person evidenced by bonds, debentures, notes or other similarinstruments;

(3) all obligations of such Person in respect of letters of credit, bankers’ acceptances orother similar instruments;

(4) all obligations of such Person to pay the deferred and unpaid purchase price of propertyor services, except trade payables due within 180 days;

(5) all Capitalized Lease Obligations and Attributable Indebtedness;

(6) all Indebtedness of other Persons secured by a Lien on any asset of such Person,whether or not such Indebtedness is assumed by such Person; provided that the amountof such Indebtedness will be the lesser of (A) the Fair Market Value of such asset atsuch date of determination and (B) the amount of such Indebtedness;

(7) all Indebtedness of other Persons guaranteed by such Person to the extent suchIndebtedness is guaranteed by such Person;

(8) to the extent not otherwise included in this definition, Hedging Obligations;

(9) all Disqualified Stock issued by such Person with the amount of Indebtednessrepresented by such Disqualified Stock being equal to the greater of its voluntary orinvoluntary liquidation preference and its maximum fixed repurchase price; and

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(10) all obligations of such Person under conditional sale or other title retention agreementsrelating to assets purchased by such Person.

Notwithstanding the foregoing, “Indebtedness” will not include (i) customer deposits andadvance payments received from customers in the ordinary course of business; (ii) any capitalcommitments, deferred payment obligations, pre-sale receipts from customers or any contingentobligations to refund payments (including deposits) to customers (or any guarantee thereof) inconnection with mandatory obligations under or pending completion of a customer contract; or(iii) obligations of the Parent Guarantor or a Restricted Subsidiary to pay the deferred and unpaidpurchase price of property or services due to suppliers of equipment or other assets (includingparts thereof) not more than one year after such property is acquired or such services arecompleted and the amount of unpaid purchase price retained by the Company or any RestrictedSubsidiary in the ordinary course of business in connection with an acquisition of equipment orother assets (including parts thereof) pending full operation or contingent on certain conditionsduring a warranty period of such equipment or assets in accordance with the terms of theacquisition; provided that only in the case of (ii) and (iii) such Indebtedness is not reflected asborrowings on the consolidated balance sheet of the Parent Guarantor (contingent obligations andcommitments referred to in a footnote to financial statements and not otherwise reflected asborrowings on the balance sheet will not be deemed to be reflected on such balance sheet).

Notwithstanding the foregoing, in connection with the purchase by the Parent Guarantor orany Restricted Subsidiary of any asset or property (including any purchase of Capital Stock of anyPerson, which will, upon such purchase, become a Restricted Subsidiary), the term “Indebtedness”will not include post-closing payment obligations of the Parent Guarantor or such RestrictedSubsidiary to which the seller may become entitled to the extent the amount of such payment isdetermined by a final closing balance sheet, final reserve assessment or a similar report ordocument or such payment depends on the performance of such asset or property after the closing;provided, however, that, at the time of closing, the amount of any such payment obligation is notdeterminable and, to the extent such payment thereafter becomes fixed and determined, the amountis paid within 180 days thereafter.

The amount of Indebtedness of any Person at any time will be the outstanding balance atsuch time of all unconditional obligations as described above (as determined in conformity withGAAP to the extent applicable) and, with respect to contingent obligations, the maximum liabilityupon the occurrence of the contingency giving rise to the obligations; provided

(A) that the amount outstanding at any time of any Indebtedness issued with original issuediscount is the face amount of such Indebtedness less the remaining unamortized portionof the original issue discount of such Indebtedness at such time as determined inconformity with GAAP,

(B) that money borrowed and set aside at the time of the Incurrence of any Indebtedness inorder to prefund the payment of the interest on such Indebtedness will not be deemed tobe “Indebtedness” so long as such money is held to secure the payment of such interest,and

(C) that the amount of Indebtedness with respect to any Hedging Agreement will be equal tothe net amount payable if such Hedging Agreement terminated at that time due todefault by such Person.

“Intercompany Loan” means the loan or loans in U.S. dollars between the Parent Guarantoror any Restricted Subsidiary, as obligor, and Signal Capital or any Finance Subsidiary or FSSubsidiary, as obligee, pursuant to an intercompany loan agreement in connection with theissuance of the Notes, including any Additional Notes or other debt obligations.

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“Interest Rate Agreement” means any interest rate protection agreement, interest rate futureagreement, interest rate option agreement, interest rate swap agreement, interest rate capagreement, interest rate collar agreement, interest rate hedge agreement, option or future contractor other similar agreement or arrangement.

“International Bank” means a bank or trust company which is organized under the laws ofthe United States of America, any state thereof, any state of the European Economic Area,Singapore, the United Kingdom or Japan.

“Investment” means:

(i) any direct or indirect advance, loan or other extension of credit to another Person;

(ii) any capital contribution to another Person (by means of any transfer of cash or otherproperty to others or any payment for property or services for the account or use ofothers);

(iii) any purchase or acquisition of Capital Stock (or options, warrants or other rights toacquire such Capital Stock), Indebtedness, bonds, notes, debentures or other similarinstruments or securities issued by another Person;

(iv) any guarantee of any obligation of another Person to the extent guaranteed by suchPerson; or

(v) all other items that would be classified as investments (including purchases of assetsoutside the ordinary course of business) on a statement of financial position of suchPerson prepared in accordance with GAAP.

For the purposes of the provisions of the “—Certain Covenants—Designation of Restrictedand Unrestricted Subsidiaries” and “—Certain Covenants—Limitation on Restricted Payments”covenants: (i) the Parent Guarantor will be deemed to have made an Investment in an UnrestrictedSubsidiary in an amount equal to the Fair Market Value of the Parent Guarantor’s proportionateinterest in the assets (net of the Parent Guarantor’s proportionate interest in the liabilities owed toany Person other than the Parent Guarantor or a Restricted Subsidiary and that are not guaranteedby the Parent Guarantor or a Restricted Subsidiary) of a Restricted Subsidiary that is designatedan Unrestricted Subsidiary at the time of such designation, (ii) any property transferred to or fromany Person will be valued at its Fair Market Value at the time of such transfer, as determined ingood faith by the Board of Directors and (iii) if the Parent Guarantor or any Restricted Subsidiaryissues, sells or otherwise disposes of any Capital Stock of a Restricted Subsidiary such that, aftergiving effect thereto, such Person is no longer a Restricted Subsidiary, any Investment by theParent Guarantor or any Restricted Subsidiary in such Person remaining after giving effect theretowill be deemed to be a new Investment at that time.

“Investment Grade” means a rating of “AAA,” “AA,” “A” or “BBB,” as modified by a “+”or “-” indication, or an equivalent rating representing one of the four highest Rating Categories,by S&P or any of its successors or assigns or a rating of “Aaa,” “Aa,” “A” or “Baa,” as modifiedby a “1,” “2” or “3” indication, or an equivalent rating representing one of the four highest RatingCategories, by Moody’s, or any of its successors or assigns or the equivalent ratings of anyinternationally recognized rating agency or agencies, as the case may be, which will have beendesignated by the Parent Guarantor as having been substituted for S&P or Moody’s or both, as thecase may be.

“Leverage Ratio” means, on any Transaction Date, the ratio of (i) Net Debt on suchTransaction Date to (ii) the Consolidated EBITDA for the Four Quarter Period with respect tosuch Transaction Date. In making the foregoing calculation of Consolidated EBITDA, the sameadjustments required for the calculation of the Fixed Charge Coverage Ratio, to the extentapplicable, shall be given effect in such calculation.

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“Lien” means any mortgage, pledge, fiduciary security, security interest, encumbrance, lien

or charge of any kind (including, without limitation, any conditional sale or other title retention

agreement or lease in the nature thereof or any agreement to create any mortgage, pledge, security

interest, lien, charge, easement or encumbrance of any kind).

“Measurement Date” means February 21, 2012.

“Moody’s” means Moody’s Investors Service, Inc. and its affiliates and its successors.

“Net Cash Proceeds” means:

(a) with respect to any Asset Sale, the proceeds of such Asset Sale in the form of cash or

Temporary Cash Investments, including payments in respect of deferred payment

obligations (to the extent corresponding to the principal, but not interest, component

thereof) when received in the form of cash or Temporary Cash Investments and

proceeds from the conversion of other property received when converted to cash or

Temporary Cash Investments, net of:

(1) brokerage commissions and other fees and expenses (including fees and expenses

of counsel and investment banks) related to such Asset Sale;

(2) provisions for all taxes (whether or not such taxes will actually be paid or are

payable) as a result of such Asset Sale without regard to the consolidated results

of operations of the Parent Guarantor and its Restricted Subsidiaries, taken as a

whole;

(3) payments made to repay Indebtedness or any other obligation outstanding at the

time of such Asset Sale that either (x) is secured by a Lien on the property or

assets sold or (y) is required to be paid as a result of such sale; and

(4) appropriate amounts to be provided by the Parent Guarantor or any Restricted

Subsidiary as a reserve against any liabilities associated with such Asset Sale,

including, without limitation, pension and other post-employment benefit

liabilities, liabilities related to environmental matters and liabilities under any

indemnification obligations associated with such Asset Sale, all as determined inconformity with GAAP; and

(b) with respect to any issuance or sale of Capital Stock, the proceeds of such issuance orsale in the form of cash or Temporary Cash Investments, including payments in respectof deferred payment obligations (to the extent corresponding to the principal, but notinterest, component thereof) when received in the form of cash or Temporary CashInvestments and proceeds from the conversion of other property received whenconverted to cash or Temporary Cash Investments, net of attorneys’ fees, accountants’fees, underwriters’ or placement agents’ fees, discounts or commissions and brokerage,consultant and other fees incurred in connection with such issuance or sale and net oftaxes paid or payable as a result thereof.

“Net Debt” means, with respect to any Person as of any Transaction Date, withoutduplication, the total principal amount of indebtedness for borrowed money of such Person and itsRestricted Subsidiaries on a consolidated basis, minus,

(1) the total amount of cash and cash equivalents of such Person and its RestrictedSubsidiaries as of such Transaction Date; and

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(2) to the extent not included in such cash and cash equivalents, Temporary CashInvestments of such Person and its Restricted Subsidiaries as of such Transaction Date.

“Offer to Purchase” means an offer to purchase Notes by the Issuer or the Parent Guarantorfrom the Holders commenced by the Issuer or the Parent Guarantor mailing a notice by first classmail, postage prepaid, to the Trustee and each Holder at its last address appearing in the Noteregister stating:

(1) the provision of the Indenture pursuant to which the offer is being made and that allNotes validly tendered will be accepted for payment on a pro rata basis;

(2) the purchase price and the date of purchase (which will be a Business Day no earlierthan 30 days nor later than 60 days from the date such notice is mailed) (the “Offer toPurchase Payment Date”);

(3) that any Note not tendered will continue to accrue interest pursuant to its terms;

(4) that, unless the Issuer or the Parent Guarantor defaults in the payment of the purchaseprice, any Note accepted for payment pursuant to the Offer to Purchase will cease toaccrue interest on and after the Offer to Purchase Payment Date;

(5) that Holders electing to have a Note purchased pursuant to the Offer to Purchase will berequired to surrender the Note, together with the form entitled “Option of the Holder toElect Purchase” on the reverse side of the Note completed, to the Paying Agent at theaddress specified in the notice prior to the close of business on the Business Dayimmediately preceding the Offer to Purchase Payment Date;

(6) that Holders will be entitled to withdraw their election if the Paying Agent receives, notlater than the close of business on the third Business Day immediately preceding theOffer to Purchase Payment Date, a facsimile transmission or letter setting forth thename of such Holder, the principal amount of Notes delivered for purchase and astatement that such Holder is withdrawing his election to have such Notes purchased;and

(7) that Holders whose Notes are being purchased only in part will be issued new Notesequal in principal amount to the unpurchased portion of the Notes surrendered; providedthat each Note purchased and each new Note issued will be in a principal amount ofUS$200,000 or integral multiples of US$1,000 in excess thereof.

One Business Day prior to the Offer to Purchase Payment Date, the Issuer or the ParentGuarantor will deposit with the Paying Agent immediately available funds sufficient to pay thepurchase price of all Notes or portions thereof to be accepted by the Issuer or the ParentGuarantor for payment on the Offer to Purchase Payment Date. On the Offer to Purchase PaymentDate, the Issuer or the Parent Guarantor will (a) accept for payment on a pro rata basis Notes orportions thereof tendered pursuant to an Offer to Purchase; and (b) deliver, or cause to bedelivered, to the Trustee all Notes or portions thereof so accepted together with an Officer’sCertificate specifying the Notes or portions thereof accepted for payment by the Issuer or theParent Guarantor. The Paying Agent will promptly mail to the Holders so accepted payment in anamount equal to the purchase price, and the Trustee will promptly authenticate and mail to suchHolders a new Note equal in principal amount to any unpurchased portion of the Notesurrendered; provided that each Note purchased and each new Note issued will be in a principalamount of US$200,000 or integral multiples of US$1,000 in excess thereof. The Issuer or theParent Guarantor will publicly announce the results of an Offer to Purchase as soon as practicableafter the Offer to Purchase Payment Date. The Issuer or the Parent Guarantor will comply withRule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to theextent such laws and regulations are applicable, in the event that the Issuer or the ParentGuarantor is required to repurchase Notes pursuant to an Offer to Purchase.

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The materials used in connection with an Offer to Purchase are required to contain orincorporate by reference information concerning the business of the Parent Guarantor and itsSubsidiaries which the Issuer or the Parent Guarantor in good faith believes will assist suchHolders to make an informed decision with respect to the Offer to Purchase, including a briefdescription of the events requiring the Issuer or the Parent Guarantor to make the Offer toPurchase, and any other information required by applicable law to be included therein. The offeris required to contain all instructions and materials necessary to enable such Holders to tenderNotes pursuant to the Offer to Purchase. To the extent that the provisions of any securities laws orregulations conflict with the requirements of the Indenture governing the Notes subject to therelevant Offer to Purchase, the Parent Guarantor and the Issuer will comply with the applicablesecurities laws and regulations and shall not be deemed to have breached their obligations underthe Notes, the Indenture and the Guarantees by virtue of their compliance with such securitieslaws or regulations.

“Officer” means one of the managing directors, executive officers or directors or theequivalent of the Issuer or the Parent Guarantor, as the case may be or, in the case of a SubsidiaryGuarantor, one of the directors or officers of such Subsidiary Guarantor.

“Officer’s Certificate” means a certificate signed by an Officer.

“Opinion of Counsel” means a written opinion from legal counsel which opinion isacceptable to the Trustee that meets the requirements of the Indenture; provided that legal counselshall be entitled to rely on a certificate of the Parent Guarantor or any Subsidiary of the ParentGuarantor, as applicable, as to matters of fact.

“Original Issue Date” means the date on which the Notes are originally issued under theIndenture.

“Permitted Business” means any business conducted (as described in this offeringmemorandum) by the Parent Guarantor on the Original Issue Date, any transmission or distributionupgrade, construction, development, installation, improvement or replacement of power generationfacility or power or fuel transmission or distribution facility, purchase of power generationtransmission or distribution or fuel transmission or distribution facility, fuel (including, withoutlimitation, gas and coal) production and transportation, and any other business, includingenvironmental protection activities, reasonably related, complementary, necessary or ancillarythereto.

“Permitted Holders” means any or all of the following:

(1) Each of Ismail Sofyan, Fenza Sofyan, Sutanto Joso, Suhaini Wardjojo Joso, Janti Joso,Djeradjat Yanto Joso, Andrew Kukkutahlie Labbaika, Marlena Dewi Tjahjadi, Iwan PutraBrasali, Aldo Putra Brasali and Grace Dewi Brasali, his or her (as the case may be)lineal descendants, and their respective relations up to the first degree;

(2) any Affiliate of the Person specified in clause (1); and

(3) any Person both the Capital Stock and the Voting Stock of which (or in the case of atrust, the beneficial interests in which) are owned 80% by Persons specified in clauses(1) and (2).

“Permitted Investment” means:

(1) any Investment in the Parent Guarantor, the Issuer or a Restricted Subsidiary that is,directly or indirectly, primarily engaged in a Permitted Business or a Person which will,upon the making of such Investment, become a Restricted Subsidiary that is primarilyengaged in a Permitted Business or be merged or consolidated with or into or transfer

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or convey all or substantially all its assets to the Parent Guarantor or a RestrictedSubsidiary that is primarily engaged in a Permitted Business and any Investment bysuch Person, which was not acquired by such Person in contemplation of suchacquisition, merger, consolidation, transfer or conveyance;

(2) cash and Temporary Cash Investments;

(3) (x) payroll, travel and other advances to officers, directors, commissioners andemployees, which are expected at the time of such advances ultimately to be treated asexpenses in accordance with GAAP; or (y) loans and other advances to officers,directors, commissioners and employees in an aggregate principal amount not to exceed$2.0 million (or the Dollar Equivalent thereof) at any one time outstanding;

(4) stock, obligations or securities received in compromise or settlement of debts created inthe ordinary course of business, or by reason of a composition or readjustment of debtsor reorganization of another Person, or in satisfaction of claims or judgments;

(5) an Investment in an Unrestricted Subsidiary consisting solely of an Investment inanother Unrestricted Subsidiary;

(6) any Investment pursuant to a Hedging Obligation otherwise permitted under theIndenture;

(7) receivables or trade credits owing to the Parent Guarantor or any Restricted Subsidiary,if created or acquired in the ordinary course of business and payable or dischargeable inaccordance with customary trade terms;

(8) any securities or other Investments received as consideration in, or retained inconnection with, sales or other dispositions of property or assets, including AssetDispositions made in compliance with the covenant described under “—CertainCovenants—Limitation on Asset Sales”;

(9) Investments received in compromise or resolution of obligations of trade creditors orcustomers that were incurred in the ordinary course of business of the Parent Guarantoror any Restricted Subsidiary, including pursuant to any plan of reorganization or similararrangement upon the bankruptcy or insolvency of any trade creditor or customer or asa result of foreclosure of or transfer of title with respect to any secured Investment andany Investments obtained in exchange for any such Investments;

(10) repurchases of the Notes;

(11) pledges, deposits or advances (x) provided to third parties with respect to leases,utilities or gas supply in the ordinary course of business, (y) provided to third partieswith respect to purchases, construction, development, installation, improvement orreplacement of machinery, equipment (including spare parts), land or other assets usedin the Permitted Business or (z) otherwise described in the definition of “PermittedLiens” or made in connection with Liens permitted under the covenant described under“—Certain Covenants—Limitation on Liens”;

(12) advances or extensions of credit to customers, suppliers, contractors or distributors inthe ordinary course of business; provided that the aggregate outstanding amount ofcredit extended to customers permitted under this clause (12) shall not exceed US$10.0million (or the Dollar Equivalent thereof) outstanding at any time;

(13) deposits made in order to comply with statutory or regulatory obligations to maintaindeposits for workers, compensation claims and other purposes specified by statute orregulation from time to time in the ordinary course of business;

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(14) any Investment made in exchange for the issuance of shares of Capital Stock (other thanDisqualified Stock) of the Parent Guarantor;

(15) any Guarantee of Indebtedness Incurred in accordance with the covenant describedunder “—Certain Covenants—Limitation on Indebtedness and Preferred Stock”;

(16) Investments made pursuant to the terms of a BOT Agreement entered into on customaryterms in the ordinary course of business; and

(17) any Investment by the Parent Guarantor or any Restricted Subsidiary (including withoutlimitation any deemed Investment upon the designation of a Restricted Subsidiary as anUnrestricted Subsidiary or upon the issuance or sale of Capital Stock of a RestrictedSubsidiary) in any Person having an aggregate Fair Market Value (measured on the dateeach such Investment was made and without giving effect to subsequent changes invalue), when taken together with all other Investments made pursuant to this clause (17)since the Original Issue Date that are at the time outstanding, not to exceed an amountequal to 7.5% of Total Assets as of the date of such Investment; provided that no Eventof Default has occurred and is continuing or would occur as a result of suchInvestment.

“Permitted Liens” means:

(1) Liens for taxes, assessments, governmental charges or claims that are being contested ingood faith by appropriate legal or administrative proceedings promptly instituted anddiligently conducted and for which a reserve or other appropriate provision, if any, aswill be required in conformity with GAAP will have been made;

(2) statutory and common law Liens of landlords and carriers, warehousemen, mechanics,suppliers, materialmen, employees or repairmen, or other similar Liens arising in theordinary course of business and with respect to amounts not yet delinquent or beingcontested in good faith by appropriate legal or administrative proceedings promptlyinstituted and diligently conducted and for which a reserve or other appropriateprovision, if any, as required in conformity with GAAP will have been made;

(3) Liens incurred or deposits made to secure the performance of tenders, bids, leases,statutory or regulatory obligations, bankers’ acceptances, surety and appeal bonds,government contracts (or, in case of deposits only, any other contracts), performanceand return-of-money bonds and other obligations of a similar nature incurred in theordinary course of business (exclusive of obligations for the payment of borrowedmoney);

(4) leases or subleases granted to others that do not materially interfere with the ordinarycourse of business of the Parent Guarantor or its Restricted Subsidiaries, taken as awhole;

(5) Liens encumbering property or assets under construction arising from progress or partialpayments by a customer of or by the Parent Guarantor or its Restricted Subsidiariesrelating to such property or assets;

(6) Liens on property of, or on shares of Capital Stock or Indebtedness of, any Personexisting at the time such Person becomes, or becomes a part of, any RestrictedSubsidiary; provided that such Liens do not extend to or cover any property or assets ofthe Parent Guarantor or any Restricted Subsidiary other than the property or assetsacquired; provided further that such Liens were not created in contemplation of or inconnection with the transactions or series of transactions pursuant to which such Personbecame a Restricted Subsidiary;

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(7) Liens in favor of the Parent Guarantor, the Issuer or any Subsidiary Guarantor;

(8) Liens arising from attachment or the rendering of a final judgment or order against the

Parent Guarantor or any Restricted Subsidiary that does not give rise to an Event of

Default;

(9) Liens securing reimbursement obligations with respect to letters of credit that encumber

documents and other property relating to such letters of credit and the products and

proceeds thereof;

(10) Liens existing on the Original Issue Date;

(11) Liens securing Indebtedness which is Incurred to refinance secured Indebtedness which

is permitted to be Incurred under clause (b)(4) of the covenant described under the

caption entitled “—Certain Covenants—Limitation on Indebtedness and Preferred

Stock”; provided that such Liens do not extend to or cover any property or assets of the

Parent Guarantor or any Restricted Subsidiary other than the property or assets securing

the Indebtedness being refinanced;

(12) easements, rights-of-way, municipal and zoning ordinances or other restrictions as to the

use of properties or minor survey exceptions or encumbrances in favor of governmental

agencies or utility, telephone or similar companies that do not materially adversely

affect the value of such properties or materially impair the use for the purposes of

which such properties are held by the Parent Guarantor or any Restricted Subsidiary;

(13) Liens securing Indebtedness which is permitted to be Incurred under clause (b)(10) or

(b)(12) of the covenant described under the caption entitled “—CertainCovenants—Limitation on Indebtedness and Preferred Stock”;

(14) Liens securing Indebtedness Incurred by the Parent Guarantor or any RestrictedSubsidiary relating to bid, performance or surety bonds or letters of credit or bankguarantees issued in the ordinary course of business to finance the purchase of fuel orother materials or equipment to be used in the Permitted Business in an aggregateamount not to exceed 25% of the Parent Guarantor’s total revenues for the Four QuarterPeriod immediately preceding the fiscal quarter during which such Liens are incurred;

(15) Liens securing Indebtedness (including Capitalized Lease Obligations) of the typedescribed in clause (b)(13) of the covenant under the caption “—CertainCovenants—Limitation on Indebtedness and Preferred Stock”; provided that such Lien(i) covers only the assets acquired, constructed, installed or improved with suchIndebtedness (including the Capital Stock of any Person that owns such assets acquired,constructed, installed or improved with such Indebtedness) and (ii) is created within 180days of such acquisition, construction, installation or improvement;

(16) Liens encumbering customary initial deposits and margin deposits, and other Liens thatare within the general parameters customary in the industry, in each case, securingIndebtedness under Hedging Obligations permitted by clause (b)(5) of the covenantunder the caption “—Certain Covenants—Limitation on Indebtedness and PreferredStock”;

(17) any interest or title of a licensor, lessor or sublessor of any of its property, includingintellectual property, subject to any licenses, leases or subleases in the ordinary courseof business;

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(18) Liens on deposits made in order to comply with statutory or regulatory obligations tomaintain deposits for workers’ compensation claims or other purposes specified by anystatute or regulation made in the ordinary course of business and not securingIndebtedness of the Parent Guarantor or any Restricted Subsidiary;

(19) Liens on assets pursuant to merger agreements, stock or asset purchase agreements andsimilar agreements in respect of the disposition of such assets;

(20) Liens securing rights of setoff in favor of a bank imposed by law and incurred in theordinary course of business on deposit accounts maintained with such bank and cashand Temporary Cash Investments in such accounts;

(21) (x) Liens on property or assets securing Indebtedness used or to be used to defease orsatisfy and discharge the Notes; provided that (a) the Incurrence of such Indebtednesswas not prohibited by the Indenture and (b) such defeasance or satisfaction anddischarge is not prohibited by the Indenture and (y) Liens on cash and Temporary CashInvestments arising in connection with the defeasance, discharge or redemption ofIndebtedness;

(22) Liens on (i) Capital Stock of a Finance Subsidiary (other than the Issuer) and anyintercompany loans or advances from such Finance Subsidiary to the Parent Guarantoror any Restricted Subsidiary, (ii) Capital Stock of a Wholly Owned RestrictedSubsidiary of a Finance Subsidiary and on any intercompany loans or advances made bysuch Wholly Owned Restricted Subsidiary to the Parent Guarantor or any RestrictedSubsidiary; and (iii) any interest reserve, debt service reserve, debt service accrual orsimilar account used to service interest payments or debt obligations with respect tosuch Indebtedness or any escrow account holding all or any part of the proceeds of suchIndebtedness, in each case securing Indebtedness of such Finance Subsidiary (orguarantees by the Parent Guarantor or Subsidiary Guarantors of such Indebtedness)permitted to be Incurred under the covenant described under the caption entitled “—Certain Covenants — Limitation on Indebtedness and Preferred Stock”;

(23) Liens upon specific items of inventory or other goods and proceeds of any Personsecuring such Person’s obligations in respect of bankers’ acceptances issued or creditedfor the account of such Person to facilitate the purchase, shipment or storage of suchinventory or other goods;

(24) Liens arising out of conditional sale, title retention, consignment or similararrangements for the sale of goods entered into by the Parent Guarantor or anyRestricted Subsidiary in the ordinary course of business;

(25) Liens Incurred in connection with any cash or treasury management program, or cashpooling, netting or set-off arrangements, in each case established in the ordinary courseof business for the benefit of the Parent Guarantor or any Restricted Subsidiary;

(26) Liens in favor of customs and revenue authorities arising by operation of law to securepayment of customs duties in connection with importation or exportation of goods in theordinary course of business;

(27) Liens on the Capital Stock of Unrestricted Subsidiaries or any Person that is not aSubsidiary of the Parent Guarantor securing Indebtedness of such UnrestrictedSubsidiaries or such Person, in each case that is otherwise non-recourse to the ParentGuarantor or any Restricted Subsidiary, unless the Parent Guarantor or such RestrictedSubsidiary could have incurred such Indebtedness under the covenant described underthe caption entitled “— Certain Covenants — Limitation on Indebtedness and PreferredStock” on the date of incurrence of such Lien;

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(28) Liens resulting from escrow arrangements entered into in connection with thedisposition of assets;

(29) any encumbrance or restriction, including customary rights of first refusal and tag, dragand similar rights with respect to Capital Stock of any joint venture pursuant to jointventure agreements entered into in the ordinary course of business;

(30) Liens Incurred in connection with any BOT Agreement or the grant of any managementor operations right with respect to any real property, in each case entered into in theordinary course of business; and

(31) other Liens with respect to obligations that do not exceed US$15.0 million (or theDollar Equivalent thereof)

provided that, with respect to Liens on the property or assets of Signal Capital, Permitted Lienswill include only Liens described in paragraphs (1), (2), (8), (17), (18), (20), (21), (22), (23),(24), (25), (26) and (28) above.

“Person” means any individual, corporation, partnership, limited liability company, jointventure, trust, unincorporated organization or government or any agency or political subdivisionthereof.

“Preferred Stock” as applied to the Capital Stock of any Person means Capital Stock of anyclass or classes that by its terms is preferred as to the payment of dividends, or as to thedistribution of assets upon any voluntary or involuntary liquidation or dissolution of such Person,over any other class of Capital Stock of such Person.

“Rating Agencies” means (i) S&P and (ii) Moody’s and (iii) if S&P or Moody’s or both willnot make a rating of the Notes publicly available, one or more “nationally recognized statisticalrating organizations,” as the case may be, within the meaning of Rule 15c3-I(c) (2) (iv) (F) underthe Exchange Act, selected by the Parent Guarantor, which will be substituted for S&P or Moody’sor both, as the case may be.

“Rating Category” means (i) with respect to S&P, any of the following categories: “BB,”“B,” “CCC,” “CC,” “C” and “D” (or equivalent successor categories); (ii) with respect toMoody’s, any of the following categories: “Ba,” “B,” “Caa,” “Ca,” “C” and “D” (or equivalentsuccessor categories); and (iii) the equivalent of any such category of S&P or Moody’s used byanother Rating Agency. In determining whether the rating of the Notes has decreased by one ormore gradations, gradations within Rating Categories (“+” and “-” for S&P; “1,” “2” and “3” forMoody’s; or the equivalent gradations for another Rating Agency) will be taken into account (e.g.,with respect to S&P, a decline in a rating from “BB+” to “BB,” as well as from “BB-” to “B+,”will constitute a decrease of one gradation).

“Rating Date” means (i) in connection with a Change of Control Triggering Event, that datewhich is 90 days prior to the earlier of (x) a Change of Control and (y) a public notice of theoccurrence of a Change of Control or of the intention by the Parent Guarantor or any other Personor Persons to effect a Change of Control or (ii) in connection with actions contemplated under thecaption “—Consolidation, Merger and Sale of Assets,” that date which is 90 days prior to theearlier of (x) the occurrence of any such actions as set forth therein and (y) a public notice of theoccurrence of any such actions.

“Rating Decline” means (i) in connection with a Change of Control Triggering Event, theoccurrence on, or within six months after, the date, or public notice of the occurrence of, aChange of Control or the intention by the Parent Guarantor or any other Person or Persons toeffect a Change of Control (which period will be extended so long as the rating of the Notes isunder publicly announced consideration for possible downgrade by any of the Rating Agencies) ofany of the events listed below, or (ii) in connection with actions contemplated under the caption“—Consolidation, Merger and Sale of Assets,” the notification by any of the Rating Agencies thatsuch proposed actions will result in any of the events listed below:

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(a) in the event the Notes are rated by both Moody’s and S&P on the Rating Date asInvestment Grade, the rating of the Notes by either Rating Agency will be belowInvestment Grade;

(b) in the event the Notes are rated by either, but not both, of the Rating Agencies on theRating Date as Investment Grade, the rating of the Notes by such Rating Agency will bebelow Investment Grade; or

(c) in the event the Notes are rated below Investment Grade by both Rating Agencies onthe Rating Date, the rating of the Notes by either Rating Agency will be decreased byone or more gradations (including gradations within Rating Categories as well asbetween Rating Categories).

“Reference Period” means, as of any Transaction Date, the period commencing on andincluding the first day of the Four Quarter Period with respect to such Transaction Date andending on and including the Transaction Date.

“Reference Treasury Dealer” means each of any three investment banks of recognizedstanding that is a primary U.S. Government securities dealer in The City of New York, selected bythe Issuer in good faith.

“Reference Treasury Dealer Quotations” means, with respect to each Reference TreasuryDealer and any redemption date, the average of the bid and asked prices for the ComparableTreasury Issue (expressed in each case as a percentage of its principal amount) quoted in writingby such Reference Treasury Dealer at 5:00 p.m. on the third Business Day preceding suchredemption date.

“Restricted Subsidiary” means any Subsidiary of the Parent Guarantor other than anUnrestricted Subsidiary.

“S&P” means S&P Global Ratings and its affiliates and its successors.

“Sale and Leaseback Transaction” means any direct or indirect arrangement relating toproperty (whether real, personal or mixed), now owned or hereafter acquired whereby the ParentGuarantor or any Restricted Subsidiary transfers such property to another Person and the ParentGuarantor or any Restricted Subsidiary leases it from such Person.

“Shareholder Subordinated Loan” means any unsecured Indebtedness for borrowed moneyIncurred by the Parent Guarantor or any Subsidiary Guarantor from any Permitted Holder as towhich (a) the payment of principal of (and premium, if any) and interest and other paymentobligations in respect of such Indebtedness is, by its terms or by the terms of any agreement orinstrument pursuant to which such Indebtedness is issued or remains outstanding and by anagreement (the “Intercreditor Agreement”) to be entered into among the holders of suchIndebtedness (or trustees or agents therefor) and the Trustee, is expressly made subordinate to theprior payment in full of the Parent Guarantee or Subsidiary Guarantee, as the case may be, to atleast the following extent: (i) no payments of principal of (or premium, if any) or interest on orotherwise due in respect of such Indebtedness may be permitted for so long as any Default exists;(ii) such Indebtedness may not (x) provide for payments of principal of such Indebtedness at theStated Maturity thereof or by way of a sinking fund applicable thereto or by way of anymandatory redemption, defeasance, retirement or repurchase thereof by the Parent Guarantor orsuch Subsidiary Guarantor (including any redemption, retirement or repurchase which is contingentupon events or circumstances, but excluding any retirement required by virtue of acceleration ofsuch Indebtedness upon an event of default thereunder), in each case prior to 366 days after thefinal Stated Maturity of the Notes or (y) permit redemption or other retirement (including pursuantto an offer to purchase made by the Parent Guarantor or any Restricted Subsidiary) of such otherIndebtedness at the option of the holder thereof prior to 366 days after the final Stated Maturity ofthe Notes; (iii) the Intercreditor Agreement will prevent the holders of such Indebtedness (or

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trustees or agents therefor) from pursuing remedies against the Parent Guarantor or any of theRestricted Subsidiaries or their respective assets or properties in an insolvency proceeding or inrespect of a default under such Indebtedness and (iv) the Intercreditor Agreement will provide inthe event that any payment is received by the holders of such Indebtedness (or any trustee oragent therefor) in respect of such Indebtedness when such payment is prohibited by one or moreof the subordination provisions described in this paragraph, such payment shall be held in trust forthe benefit of, and shall be paid over or delivered to, the Trustee on behalf of the Holders, and (b)the terms thereof provide that interest (and premium, if any) thereon is paid solely in the form ofpay-in-kind, or PIK, interest constituting additional Shareholder Subordinated Loans.

“Significant Subsidiary” means any Restricted Subsidiary that would be a “significantsubsidiary” as defined in Article 1, Rule 1-02 of Regulation S-X, promulgated under the SecuritiesAct, as such regulation is in effect on the Original Issue Date, provided that in each instance insuch definition in which the term “10 percent” is used, the term “5 percent” shall be substitutedtherefor.

“Signal Capital” means Signal Capital B.V., a company incorporated in the Netherlands.

“Stated Maturity” means, (1) with respect to any Indebtedness, the date specified in suchdebt security as the fixed date on which the final installment of principal of such Indebtedness isdue and payable as set forth in the documentation governing such Indebtedness and (2) withrespect to any scheduled installment of principal of or interest on any Indebtedness, the datespecified as the fixed date on which such installment is due and payable as set forth in thedocumentation governing such Indebtedness.

“Subordinated Indebtedness” means any Indebtedness of the Issuer, the Parent Guarantor orany Subsidiary Guarantor which is contractually subordinated or junior in right of payment to theNotes, the Parent Guarantee or any Subsidiary Guarantee, as applicable, pursuant to a writtenagreement to such effect.

“Subsidiary” means, with respect to any Person, any corporation, association or otherbusiness entity of which more than 50% of the voting power of the outstanding Voting Stock isowned, directly or indirectly, by such Person and one or more other Subsidiaries of such Person.

“Subsidiary Guarantee” means any guarantee of the obligations of the Issuer under theIndenture and the Notes by any Subsidiary Guarantor.

“Subsidiary Guarantor” means any future Restricted Subsidiary which guarantees the paymentof the Notes pursuant to the Indenture and the Notes; provided that Subsidiary Guarantor will notinclude any Person whose Subsidiary Guarantee has been released in accordance with theIndenture and the Notes.

“Temporary Cash Investment” means any of the following:

(1) direct obligations of the United States of America, Japan, the United Kingdom,Singapore or any agency thereof or obligations fully and unconditionally guaranteed bythe United States of America, Japan, the United Kingdom, Singapore, Hong Kong orany agency thereof, in each case maturing within one year;

(2) time deposit accounts, certificates of deposit and money market deposits maturingwithin 180 days of the date of acquisition thereof issued by a bank or trust companywhich is organized under the laws of the United States of America, any state thereof,European Economic Area, Indonesia, Japan, the United Kingdom, Hong Kong orSingapore, and which bank or trust company has capital, surplus and undivided profitsaggregating in excess of US$500.0 million (or the Dollar Equivalent thereof) and hasoutstanding debt which is rated “A” (or such similar equivalent rating) or higher by atleast one nationally recognized statistical rating organization (as defined in Rule 436under the Securities Act);

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(3) repurchase obligations with a term of not more than 30 days for underlying securities ofthe types described in clause (1) above entered into with a bank or trust companymeeting the qualifications described in clause (2) above;

(4) commercial paper, maturing not more than one year after the date of acquisition, issuedby a corporation (other than an Affiliate of the Parent Guarantor) organized and inexistence under the laws of the United States of America, any state thereof or anyforeign country recognized by the United States of America with a rating at the time asof which any investment therein is made of “P-1” (or higher) according to Moody’s or“A-1” (or higher) according to S&P;

(5) securities with maturities of six months or less from the date of acquisition issued orfully and unconditionally guaranteed by any state, commonwealth or territory of theUnited States of America, or by Japan or the United Kingdom, or by any politicalsubdivision or taxing authority thereof, and rated at least “A” by S&P or Moody’s;

(6) any money market fund that has at least 95% of its assets continuously invested ininvestments of the types described in clauses (1) through (5) above;

(7) time deposit accounts, certificates of deposit and money market deposits issued by anyIndonesia branch of an International Bank, provided that such International Bank hascapital, surplus and undivided profits aggregating in excess of US$100.0 million (or theDollar Equivalent thereof) and has outstanding long-term debt which is rated at least“A” by S&P or Moody’s; and

(8) time deposit accounts, certificates of deposit and money market deposits with any of (a)PT Bank Negara Indonesia (Persero) Tbk, PT Bank DBS Indonesia, PT Bank MaybankIndonesia Tbk, Bangkok Bank Company Limited, The Hongkong and Shanghai BankingCorporation Limited, PT Bank Commonwealth, PT Bank UOB Indonesia, PT BankCIMB Niaga Tbk, PT Bank Mandiri (Persero) Tbk, PT Bank Rakyat Indonesia (Persero)Tbk, PT Bank Central Asia Tbk, The Royal Bank of Scotland NV, Citibank NA, PTBank Mega Tbk, PT Bank Permata Tbk, Standard Chartered Bank, PT Bank OCBC NISPTbk, Deutsche Bank AG, Bank of America NA, PT Bank Danamon Indonesia Tbk, TheBank of Tokyo Mitsubishi UFJ Ltd, PT Bank ANZ Indonesia, Barclays Bank, PT BankSumitomo Mitsui Indonesia, Credit Suisse, UBS AG, PT Bank Pan Indonesia Tbk, JPMorgan Chase Bank NA, PT Bank BNP Paribas Indonesia and Bank Bukopin or (b) anybank incorporated or licensed to operate under the laws of Indonesia or Singaporewhose long-term debt is rated “A” or higher according to (i) Moody’s, S&P or Fitch, or(ii) a nationally recognized Indonesian or Singaporean, as applicable, statistical ratingorganization (or another recognized financial institution) and in the case of (ii), whichhas capital and surplus in excess of US$100.0 million.

“Total Assets” means, as of any date of determination, the total consolidated assets(excluding goodwill and other intangible asset, but including mining rights) of the ParentGuarantor and its Restricted Subsidiaries measured in accordance with GAAP as of the last day ofthe most recently ended fiscal quarter prior to such date for which consolidated financialstatements (which may be internal financial statements) of the Parent Guarantor are available;provided that Total Assets shall be calculated after giving pro forma effect to reflect (withoutduplication) (1) the cumulative value of all assets, real or personal property machinery, plant andequipment, the acquisition, development, construction or improvement of which requires orrequired the Incurrence of Indebtedness, as measured by the purchase price or cost therefor orbudgeted cost provided to the bank or other similar financial institutional lender providing suchIndebtedness (but only, in each case, to the extent that such cumulative value is not reflected insuch total consolidated assets as of the last day of such fiscal quarter) and (2) any assetacquisitions and asset dispositions (including giving pro forma effect to the application ofproceeds of any asset disposition) that have been made since the last day of such fiscal quarterand on or prior to such date of determination.

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“Transaction Date” means, with respect to (i) the Incurrence of any Indebtedness, the date

such Indebtedness is to be Incurred, (ii) any Restricted Payment, the date such Restricted Payment

is to be made and (iii) the incurrence or assumption of any Lien, the date such Lien is to be

incurred or assumed.

“Treasury Rate” means, with respect to any redemption date, (i) the yield, under the heading

which represents the average for the immediately preceding week, appearing in the most recently

published statistical release designated “H.15(519)” or any successor publication which is

published weekly by the Board of Governors of the Federal Reserve System and which establishes

yields on actively traded United States Treasury securities adjusted to constant maturity under the

caption “Treasury Constant Maturities,” for the maturity corresponding to the Comparable

Treasury Issue (if no maturity is within three (3) months before or after September 14, 2021,

yields for the two published maturities most closely corresponding to the Comparable Treasury

Issue shall be determined and the Treasury Rate shall be interpolated or extrapolated from such

yields on a straight line basis, rounding to the nearest month) or (ii) if such release (or any

successor release) is not published during the week preceding the calculation date or does not

contain such yields, the rate per year equal to the semi-annual equivalent yield to maturity of the

Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a

percentage of its principal amount) equal to the Comparable Treasury Price for such redemption

date, in each case calculated on the third Business Day immediately preceding the redemption

date.

“Unrestricted Subsidiary” means (1) any Subsidiary of the Parent Guarantor that at the time

of determination will be designated an Unrestricted Subsidiary by the Board of Directors in the

manner provided in the Indenture; and (2) any Subsidiary of an Unrestricted Subsidiary.

“U.S. Government Obligations” means securities that are (1) direct obligations of the United

States of America for the payment of which its full faith and credit is pledged or (2) obligations

of a Person controlled or supervised by and acting as an agency or instrumentality of the United

States of America the payment of which is unconditionally guaranteed as a full faith and credit

obligation by the United States of America, which, in either case, are not callable or redeemable

at the option of the issuer thereof at any time prior to the Stated Maturity of the Notes, and will

also include a depository receipt issued by a bank or trust company as custodian with respect to

any such U.S. Government Obligation or a specific payment of interest on or principal of any such

U.S. Government Obligation held by such custodian for the account of the holder of a depository

receipt; provided that (except as required by law) such custodian is not authorized to make any

deduction from the amount payable to the holder of such depository receipt from any amount

received by the custodian in respect of the U.S. Government Obligation or the specific payment of

interest on or principal of the U.S. Government Obligation evidenced by such depository receipt.

“Voting Stock” means, with respect to any Person, Capital Stock of any class or kind

ordinarily having the power to vote for the election of directors, managers or other voting

members of the governing body of such Person.

“Wholly Owned” means, with respect to any Subsidiary of any Person, the ownership of all

of the outstanding Capital Stock of such Subsidiary (other than any director’s qualifying shares or

Investments by foreign nationals mandated by applicable law) by such Person or one or more

Wholly Owned Subsidiaries of such Person.

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TAXATION

The following summary is based on tax laws of The Netherlands, Indonesia and the United

States as in effect on the date of this offering memorandum, and is subject to changes in Dutch,

Indonesian or U.S. law, including changes that could have retroactive effect. The following

summary does not take into account or discuss the tax laws of any countries other than The

Netherlands, Indonesia or the United States. Prospective purchasers in all jurisdictions are

advised to consult their own tax advisors as to Dutch, Indonesian, U.S. or other tax consequence

of the acquisition, ownership and disposition of the Notes.

Netherlands Taxation

The information given below is neither intended as tax advice nor purports to describe all of

the tax considerations that may be relevant to a prospective purchaser of the Notes. Prospective

purchasers are advised to acquaint themselves with the overall tax consequences of acquiring,

holding, redeeming and/or disposing of Notes. Except as otherwise indicated, this summary only

addresses The Netherlands tax legislation as in effect and in force at the date hereof, as

interpreted in published case law, without prejudice to any amendments introduced at a later date

and implemented with or without retroactive effect.

Withholding Tax

All payments under the Notes can be made free of withholding or deduction of, for or on

account of any taxes of whatever nature imposed, levied, withheld or assessed by The Netherlands

or any political subdivision or taxing authority thereof or therein.

Taxes on Income and Capital Gains

A corporation being a Noteholder will not be subject to any Netherlands taxes on income or

capital gains in respect of any payment under the Notes or in respect of any gain realized on the

disposition or the redemption of the Notes provided that:

• such Noteholder is not a resident nor deemed to be a resident of The Netherlands;

• such Noteholder does not have and did not have an enterprise or an interest in an

enterprise that is, in whole or in part, carried on through a permanent establishment or apermanent representative in The Netherlands to which enterprise or part of an enterprisethe Notes are attributable;

• such Noteholder is not entitled to a share in the profit or is jointly entitled to the equityof an enterprise that has its place of management in The Netherlands and to whichenterprise the Notes are attributable, unless such profit share or joint entitlement arisesout of the holding of securities; and

• such Noteholder does not have a substantial interest, as defined in Netherlands tax law,in the share capital of the Issuer, or when such holder has a substantial interest, thissubstantial interest forms part of the business assets of the holder. For the purposes ofthis clause, a substantial interest is generally present if a corporation directly orindirectly, owns or has certain other rights to acquire, shares constituting five per centor more of the Issuer’s aggregate issued share capital or, if the Issuer has severalclasses of shares, of the issued share capital of any class of shares or, if the Issuer hasissued profit certificates, of profit certificates entitling him to at least five per cent ofthe annual profit or to at least five per cent of the liquidation proceeds.

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An individual being a Noteholder, will not be subject to any Netherlands taxes on income orcapital gains in respect of any payment under the Notes or in respect of any gain realized on thedisposition or the redemption of the Notes provided that the conditions as mentioned under thefirst, second and fourth bullet points above are met and also provided that:

• such individual Noteholder has not elected to be taxed as a resident of The Netherlands;

• such individual Noteholder is not entitled to a share in the profit of an enterprise thathas its place of management in The Netherlands and to which enterprise the Notes areattributable, unless such profit share arises out of employment or the holding ofsecurities; and

• such income or gain does not form income derived from employment or deemedemployment and does not form ‘results from other activities performed in TheNetherlands’ (resultaat uit overage werkzaamheden) as defined in the Personal IncomeTax Act 2001. The aforementioned definition includes but is not limited to the casewhere such individual Noteholder, alone or together with his or her partner (statutorydefined term) or certain other related person, directly or indirectly, has a substantialinterest in the Issuer or in any other corporate entity resident in The Netherlands that isthe beneficiary of the proceeds of the Notes and for whose risk and account the Noteshave been issued. For the purposes of this clause, a substantial interest is generallypresent if such individual alone or together with his spouse or partner or certain otherrelated person, as the case may be, directly or indirectly, owns, or has certain otherrights to acquire, shares constituting five per cent or more of a company’s aggregateissued share capital or, if a company has several classes of shares, of the issued sharecapital of any class of shares or, if a company has issued profit certificates, of profitcertificates entitling him to at least five per cent of the annual profit or to at least fiveper cent of the liquidation proceeds.

A Noteholder will not be subject to Netherlands taxation on income and capital gains merelyby reason of the holding the Notes or execution, delivery and/or enforcement of the documentsrelating to this offering memorandum or the performance by the Issuer of its obligations under theNotes.

Gift and Inheritance Taxes

No gift or inheritance taxes will arise in The Netherlands in respect of the acquisition ordeemed acquisition of Notes by way of gift by, or on the death of, an individual being Noteholderwho is not a resident or not deemed to be a resident of The Netherlands, provided that:

• such Notes are not attributable to an enterprise that is, in whole or in part, carried onthrough a permanent establishment or a permanent representative in The Netherlandsand that is owned by the donor or the deceased or in which the donor or the deceasedhas, at the time of the gift, or had, at the time of his death or within one year prior tohis or her death, an interest in;

• such Notes are not attributable to the assets of an enterprise that has its place ofmanagement in The Netherlands and the donor is or the deceased was, other than byway of securities or out of employment, entitled to a share in the profits of thatenterprise, at the time of the gift of the aforementioned share or at the time of his deathor within one year prior to his or her death; and

• in the case of a gift of Notes by an individual who at the date of the gift was neither aresident or deemed to be a resident of The Netherlands, such individual Note holderdoes not die within 180 days after the date of the gift, while at the time of his or herdeath being a resident or deemed to be a resident of The Netherlands.

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Other Taxes and Duties

There are no registration taxes, stamp duties, capital taxes, transfer taxes, sales taxes, valueadded taxes or other taxes, levies, imposts or charges of a similar nature of The Netherlands orany political subdivision or taxing authority thereof or therein, payable on or in connection withexecution, performance or enforcement of any documents related to this offering or in connectionwith the arrangements contemplated thereby, or on the issue, subscription, initial distribution, orthe disposition and transfer of the Notes, other than value added tax on the fees payable forservices which are not expressly exempt from Netherlands value added tax, such as management,administrative and similar activities, safekeeping of the Notes and the handling and verifying ofdocuments.

Tax Reporting

Under EU Directive 2014/107/EU and the OECD Common Reporting Standard MultilateralCompetent Authority Agreement, each participating State (which includes but is not limited to theNetherlands) requires paying agents, banks and other financial institutions established within itsterritory to disclose to the competent tax authority of the State details of the payment of interestand other similar income to any individual or company resident in another participating State asthe beneficial owner of the interest or other income. The competent tax authority of the payingagent is then required to communicate this information to the competent tax authority of theparticipating State of which the beneficial owner of the interest is a resident.

Indonesian Taxation

The following discussion is a summary with respect to taxes imposed by the Government.The summary does not address any laws other than the tax laws of Indonesia in force and as theyare applied in practice as of the date of this offering memorandum.

General

Resident taxpayers, individual or corporate, are subject to income tax in Indonesia, in generalat a maximum rate of 30% for individuals, and 25% for corporate taxpayers. Subject to theprovisions of any applicable agreement for the avoidance of double taxation (a “tax treaty”),non-resident taxpayers, namely individuals or corporations not domiciled or established inIndonesia, which derive income sourced in Indonesia from, among other things, the sale ortransfer of assets situated in Indonesia, services performed in or outside Indonesia or interest,royalties or dividends from Indonesia, are subject to a withholding tax on that income at the rateof 20.0%, as long as such individuals or corporations do not have a permanent establishment(“PE”) in Indonesia. If a non-resident taxpayer derives income sourced in Indonesia through a PE,the income of such PE would be subject to a 25% income tax plus a 20% branch profit tax(“BPT”) on the PE’s “net income after tax”, as determined for Indonesian tax purposes. The BPTrate may be reduced in accordance with an applicable tax treaty that may be in place betweenIndonesia and the country of residence of the corporation. With regard to asset sales or transfers,withholding tax is imposed on the estimated net income.

Withholding Tax

Payments of principal under the Notes are not subject to withholding tax. The amount of anypayment (or accruals) by the Parent Guarantor under the Parent Guarantee attributable to interestpayable on the Notes will be subject to withholding tax in Indonesia at the statutory rate of 20%or the relevant reduced rate under an applicable tax treaty (15% in the case of the U.S.-Indonesiatax treaty) if the payment is made to a non-resident taxpayer, and to withholding tax at the rate of15% if it is made to another resident taxpayer (other than an Indonesian bank). In the case of

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non-resident taxpayers which do not have a permanent establishment in Indonesia, the withholdingtax is final and the effective rate of tax may be reduced by virtue of a tax treaty provided therelevant certificate of residence is provided and such non-resident taxpayers are indeed thebeneficial owners of such income.

Payments (or accruals) of interest made by the Parent Guarantor to Signal Capital withrespect to the Intercompany Loan from Signal Capital to the Parent Guarantor will be subject towithholding tax in Indonesia at the statutory rate, unless reduced under the Indo-Ned Tax Treaty.As described above, the statutory rate of such withholding is 20%. However, the Indo-Ned TaxTreaty provides for a reduced rate of withholding of 0%, provided that, among other things, theinterest is paid on loans with a term of more than two years and the recipient is the beneficialowner of the interest.

In relation to the Indo-Ned Tax Treaty, the ITA issued the June 2005 Tax Circular whichstates that until the “mode of application” for withholding tax exemption is agreed by theGovernment of Indonesia and the Government of The Netherlands, any interest payment made byan Indonesian tax resident to a Dutch tax resident will be subject to 10% withholding tax.

On August 22, 2008, the ITA issued circular SE-03/PJ.03/2008 (the “August 2008 TaxCircular”), which addressed the issue of beneficial ownership of certain types of income paid toresidents of treaty countries. Under the August 2008 Tax Circular, Indonesian taxpayers areobligated to deduct withholding tax on income paid to non-resident taxpayers in the form ofdividends, interest and royalties and must ensure that:

• the certificate of residence of the non-resident taxpayers receiving such income isavailable as evidence that they are tax residents of the respective country; and

• the non-resident is the true owner of such income and is fully entitled to the directbenefit of such income (or commonly known as the beneficial owner).

The circular does not mention any specific documents required to prove that the non-residentis the beneficial owner.

According to the New Income Tax Law that came into effect as of January 1, 2009, abeneficial owner is defined as the person (an individual or a corporation) entitled to directly enjoythe benefits of such income. The domicile country of the beneficial owner is determined on thebasis of the actual residence of the individual or the place of establishment of the corporation(i.e., the country where the owners are domiciled or where the shareholders representing morethan 50% of the total interest are domiciled or where the effective management is located).

Subsequently, the DGT issued the November 2009 Tax Regulations and the April 2010 TaxRegulations. The November 2009 Tax Regulations revoke and replace the June 2005 Tax Circularand the August 2008 Tax Circular, and relate, among other things, to the application of tax treatybenefits. Under the November 2009 Tax Regulations and the April 2010 Tax Regulations, if it isdetermined that:

• an income recipient is not the beneficial owner of the income (e.g., the income recipientis merely an agent or a nominee or a conduit company);

• a transaction does not have economic substance and is structured with the sole purposeof enjoying tax treaty benefits; or

• a transaction is structured such that the legal form is at variance with the economicsubstance for the sole purpose of enjoying tax treaty benefits,

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a taxpayer’s entitlement to withholding tax benefits under an applicable tax treaty will be voidedand the 20% statutory withholding tax rate will be applied.

Under the November 2009 Tax Regulations and the April 2010 Tax Regulations, a companycan avoid such an adverse determination and qualify for benefits allowed under applicable taxtreaties if it is able to satisfy all of the following requirements (the “Six Requirements”):

• the company’s incorporation and transactions are not merely aimed at enjoying taxtreaty benefits;

• the management of the company has genuine decision-making authority;

• the company has actual employees;

• the company is engaged in genuine business activities;

• any revenue sourced in Indonesia is subject to tax in the country where the recipient ofthe income is located; and

• the company does not use more than 50% of its total income to fulfill obligations toother parties in the form of interest, royalties or other fees (excluding salary paid toemployees and dividends paid to shareholders).

For a tax treaty to apply, the foreign income recipient will be required to provide theIndonesian payor of the income with a valid certificate of residence. Based on the November 2009Tax Regulations, ITA Circular No. SE-114/PJ/2009 and the April 2010 Tax Regulations, SignalCapital will be required to provide a certificate of residence in the form of DGT-Form #1. Thefirst page of DGT-Form #1 needs to be certified by a competent tax authority from thenon-resident income recipient’s country of residence to confirm that the non-resident incomerecipient is a tax resident of the certifying country. However, if certification from a competent taxauthority of the certifying country cannot be obtained, the non-resident income recipient mustreplace this with a Certificate of Domicile of Non Resident for Indonesia Tax Withholding(“COD”) issued by the competent tax authority of the treaty country. In this case the original CODissued by the competent tax authority is required to be attached to the DGT-Form #1 that has beencompleted and signed by the non-resident income recipient. The COD must satisfy certainrequirements set by the DGT. The second page of DGT-Form #1 requires the foreign incomerecipient to confirm that it satisfies the Six Requirements, as well as to provide details on theamounts and types of income. The second page does not require any certification by a competenttax authority. See “Risk Factors—Risks Relating to Indonesia—The Indonesia- Netherlands taxtreaty may be applied in a manner adverse to Cikarang Listrindo’s interests.”

New Protocol to Indonesia-Netherlands Tax Treaty

On July 30, 2015, the Netherlands and Indonesia signed the Protocol. Under the Protocol,interest payments on loans that qualify for the withholding exemption under the current Indo-NedTax Treaty would instead be subject to a 5% withholding tax.

Furthermore, the Protocol stipulates that for the purposes of the Indo-Ned Tax Treaty, theterm “Beneficial Owner” is to be interpreted in accordance with the Organization for EconomicCo-operation and Development (the “OECD”) commentary prevailing at the time of signing theProtocol and any subsequent clarifying modifications thereon. According to the OECD, the term“Beneficial Owner” should be understood in its context and in light of the object and purposes ofthe OECD model tax convention, including the avoidance of double taxation and the prevention offiscal evasion and avoidance.

The Protocol also confirms that no mutual agreement between the competent tax authoritiesof Indonesia and the Netherlands on the mode of application of the Indo-Ned Tax Treaty’s interestarticle is required for the application of such article.

We do not know when the Protocol will be ratified and enter into force.

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Taxes on Capital Gains

Non-resident individuals and corporations without a permanent establishment in Indonesiawill not be subject to Indonesian income or withholding tax on any gain derived from the sale orother disposal of Notes to a non-resident individual or corporation without a permanentestablishment in Indonesia.

Under Government Regulation No. 16/2009, which took effect on January 1, 2009 (“TaxRegulation No. 16”), however, non-resident individuals and corporations without a permanentestablishment in Indonesia may be subject to Indonesian withholding tax on any gain derived fromthe sale or other disposal of Notes to an Indonesian resident individual or corporation, includingany purchase of the Notes by the Parent Guarantor. Under Tax Regulation No. 16, gain on suchsales would be subject to Indonesian withholding tax because it would be deemed to beIndonesian-sourced interest. Therefore, any gain from the sale of Notes to an Indonesian taxresident by an investor that is not an Indonesian tax resident where the transaction is conductedthrough a securities company, dealer or bank in Indonesia (either as intermediary or buyer), willbe subject to the 20% Indonesian withholding tax normally applicable to Indonesian-sourcedinterest. However, if the non-resident investor is a tax resident of a country that has signed a taxtreaty with Indonesia, relief from the imposition of such withholding tax may be available to theextent that the relevant treaty treats the gain as taxable only by the country in which the investoris resident for tax purposes, rather than treating the gain as interest. By way of example, the taxtreaty between Indonesia and the United States generally provides that eligible U.S. investors areexempt from Indonesian tax on gains, provided that the investor does not have a permanentestablishment or fixed base in Indonesia or the property giving rise to the gain is not effectivelyconnected with such a permanent establishment or fixed base and if the recipient of the gains isan individual, he or she is present in Indonesia for less than 120 days during the taxable year.Non-resident investors should consult their own tax advisors regarding the application ofIndonesian withholding tax, and the process for obtaining treaty benefits with respect to any gainon the sale or other disposal of Notes to an Indonesian resident individual or corporation.

Other Indonesian Taxes

There are no Indonesian estate, inheritance, succession, or gift taxes generally applicable tothe acquisition, ownership or disposition of the Notes. There are no Indonesian stamp, issue,registration or similar taxes or duties payable by the Noteholders as a result of their holding ofthe Notes.

The above summary is not intended to constitute a complete analysis of all tax consequencesrelating to the ownership of the Notes. Prospective purchasers of the Notes should consult theirown tax advisors concerning the tax consequences of their particular situations.

U.S. Federal Income Tax Considerations

The following discussion is a summary of certain U.S. federal income tax considerationsrelevant to the purchase, ownership, and disposition of the Notes by U.S. Holders (as definedbelow) who purchase Notes in this offering at the issue price within the meaning of Section 1273of the Internal Revenue Code of 1986, as amended (the “Code”), and who hold the Notes ascapital assets within the meaning of Section 1221 of the Code. This discussion is based onexisting provisions of the Code and U.S. Treasury Regulations, rulings and judicial decisions,which are subject to change or differing interpretation, possibly with retroactive effect. Thediscussion is not a complete description of all the tax considerations that may be relevant to aparticular holder. It does not address the specific tax consequences applicable to investors subjectto special rules, such as banks, insurance companies, investors liable for the alternative minimumtax, tax-exempt organizations, dealers in securities or currencies, traders that elect mark-to-markettreatment, investors that will hold the Notes as part of straddles, hedging transactions or

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conversion transactions for U.S. federal tax purposes, investors that will hold Notes in connectionwith a permanent establishment or fixed base in Indonesia, investors who are individuals and arepresent in Indonesia for 120 days or more during the taxable year or investors whose functionalcurrency is not the U.S. Dollar.

The Issuer has made an election to be treated as a disregarded entity for U.S. federal incometax purposes. Accordingly, the Notes will be treated as having been issued by the Parent Guarantorfor U.S. federal income tax purposes.

U.S. Holders

A “U.S. Holder” means a beneficial owner of Notes that is:

(i) an individual who is a citizen or resident of the United States for U.S. federal incometax purposes;

(ii) a corporation or other business entity taxable as a corporation for U.S. federal incometax purposes created or organized under the laws of the United States, any State thereofor the District of Columbia;

(iii) an estate the income of which is subject to U.S. federal income tax without regard to itssource; or

(iv) a trust if (a) a court within the United States is able to exercise primary supervisionover the administration of the trust and one or more U.S. persons have the authority tocontrol all substantial decisions of the trust or (b) it has a valid election in effect underapplicable U.S. Treasury regulations to be treated as a U.S. person.

If a partnership (including any entity treated as a partnership for U.S. federal income taxpurposes) holds the Notes, the tax treatment of a partner will generally depend on the status of thepartner and the activities of the partnership. Such partnerships and their partners should consulttheir tax advisors as to the tax consequences of the purchase, ownership and disposition of theNotes.

Interest and Additional Amounts

The gross amount of interest (before deduction of any Indonesian or Dutch taxes withheldfrom payments to a U.S. Holder under the Notes or the Parent Guarantee) will be includible intaxable income as ordinary interest income at the time it is received or accrued in accordance withthe U.S. Holder’s method of tax accounting. Such interest will constitute income from sourcesoutside the United States for foreign tax credit purposes, and generally will constitute “passivecategory income” or, in the case of certain U.S. Holders, “general category income” for purposesof computing the U.S. Holder’s foreign tax credit allowable under U.S. federal income tax laws.The rules relating to foreign tax credits and the timing thereof are complex and U.S. Holdersshould consult their own tax advisors regarding the availability of a foreign tax credit and theapplication of the foreign tax credit limitations to their particular situation.

Taxation of the Sale, Exchange, Retirement, or Other Disposition of a Note

Upon the sale, exchange, retirement, or other disposition of a Note, a U.S. Holder generallywill recognize gain or loss equal to the difference between the amount realized on such disposition(less any amount attributable to accrued interest which will be taxable as ordinary interest incomeas described above), and the U.S. Holder’s tax basis in such Note (generally the cost of such Noteto such U.S. Holder). Gain or loss recognized by a U.S. Holder generally will be long-term capitalgain or loss if the U.S. Holder has held the Note for more than one year at the time ofdisposition. Long-term capital gain recognized by certain non-corporate U.S. Holders, including

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individuals, currently is eligible for reduced rates of taxation. The deductibility of capital losses is

subject to limitations. Gain or loss realized by a U.S. Holder on the sale, exchange, retirement, or

other disposition of a Note generally will be treated as U.S. source gain or loss for foreign tax

credit purposes.

If any Indonesian taxes are imposed on a U.S. Holder’s gain with respect to the sale or other

disposition of a Note, as described under “—Indonesian Taxation—Taxes on Capital Gains,” a U.S.

Holder may not be able to claim a foreign tax credit for such tax. In such a case, the U.S. Holder

should consult its own tax advisor regarding the availability of any benefits under the income tax

treaty between the United States and Indonesia and the process for obtaining such benefits,

including any refund of Indonesian taxes withheld on gain and the availability of a foreign tax

credit in the event such Indonesian taxes are not refundable under the treaty.

Information Reporting and Backup Withholding

Interest on the Notes, and payments of the proceeds of a sale of the Notes, that are paid

within the United States or through certain U.S. related financial intermediaries are subject to

information reporting and may be subject to backup withholding unless the U.S. Holder (i) is a

corporation or other exempt recipient or (ii) provides its taxpayer identification number and meets

certain certification requirements, or otherwise establishes an exemption.

U.S. Holders should consult their tax advisors regarding their qualification for an exemption

from backup withholding and the procedures for obtaining such an exemption, if applicable. The

backup withholding is not an additional tax and taxpayers may claim a refund or may use amounts

withheld as a credit against their U.S. federal income tax liability as long as they timely provide

certain information to the Internal Revenue Service.

Certain U.S. Holders that hold certain foreign financial assets (which may include Notes) are

required to report information relating to such assets, subject to exceptions (including an

exception for securities held in accounts maintained by certain financial institutions). U.S. Holders

should consult their tax advisors regarding the effect, if any, of this reporting requirement on their

ownership and disposition of Notes.

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PLAN OF DISTRIBUTION

Barclays Bank PLC and Deutsche Bank AG, Hong Kong Branch are acting as joint leadmanagers and joint bookrunners of the offering of Notes. Subject to the terms and conditionsstated in the purchase agreement dated the date of this offering memorandum (the “PurchaseAgreement”), each Initial Purchaser named below has severally agreed to purchase, and the Issuerhas agreed to sell to each such Initial Purchaser, the principal amount of the Notes set forthopposite the name of such Initial Purchaser.

Initial Purchaser Principal Amount

Barclays Bank PLC .......................................................................................................................... US$275,000,000

Deutsche Bank AG, Hong Kong Branch............................................................................................ US$275,000,000

Total ................................................................................................................................................ US$550,000,000

The Purchase Agreement provides that the obligations of the Initial Purchasers to purchasethe Notes are subject to approval of certain legal matters by counsel and to certain otherconditions. The Initial Purchasers must purchase all of the Notes if they purchase any of theNotes. The initial offering price is set forth on the cover page of this offering memorandum. Afterthe Notes are released for sale, the Initial Purchasers may change the offering price and otherselling terms. The Initial Purchasers reserve the right to withdraw, cancel or modify offers toinvestors and to reject orders in whole or in part. Delivery of the Notes is expected to occur on orabout September 13, 2016.

The Issuer and the Parent Guarantor have agreed to indemnify the Initial Purchasers againstcertain liabilities, including liabilities under the Securities Act, or to contribute to payments thatthe Initial Purchasers may be required to make in respect of any of such liabilities.

The Issuer and the Parent Guarantor have been advised that the Initial Purchasers propose toresell the Notes at the offering price set forth on the cover page of this offering memorandumwithin the United States, through their respective U.S. broker-dealer affiliates, to qualifiedinstitutional buyers (as defined in Rule 144A) in reliance on Rule 144A and outside the UnitedStates in offshore transactions in reliance on Regulation S. See “Transfer Restrictions.”

The Issuer and the Parent Guarantor have agreed not to, for a period commencing on the datehereof and ending on the 180th day after the date of the offering memorandum, directly orindirectly (i) offer for sale, sell, or otherwise dispose of (or enter into any transaction or devicethat is designed to, or would be expected to, result in the disposition by any person at any time inthe future of) any debt securities of the Issuer and the Parent Guarantor substantially similar tothe Notes or securities convertible into or exchangeable for such debt securities of the Issuer andthe Parent Guarantor, or sell or grant options, rights or warrants with respect to such debtsecurities of the Issuer and the Parent Guarantor or securities convertible into or exchangeable forsuch debt securities of the Issuer and the Parent Guarantor, (ii) enter into any swap or otherderivatives transaction that transfers to another, in whole or in part, any of the economic benefitsor risks of ownership of such debt securities of the Issuer and the Parent Guarantor, whether anysuch transaction described in clause (i) or (ii) above is to be settled by delivery of debt securitiesof the Issuer and the Parent Guarantor or other securities, in cash or otherwise, (iii) file or causeto be filed a registration statement, including any amendments, with respect to the registration ofdebt securities of the Issuer and the Parent Guarantor substantially similar to the Notes orsecurities convertible, exercisable or exchangeable into debt securities of the Issuer and the ParentGuarantor or (iv) publicly announce an offering of any debt securities of the Issuer and the ParentGuarantor substantially similar to the Notes or securities convertible or exchangeable into suchdebt securities, in each case without the prior written consent of the Initial Purchasers.

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The Notes and the Parent Guarantee have not been registered under the Securities Act and,unless so registered, may not be offered or sold within the United States except in certaintransactions exempt from, or not subject to, the registration under the Securities Act. See“Transfer Restrictions.”

In addition, until 40 days after the commencement of this offering, an offer or sale of Noteswithin the United States by a dealer, whether or not it is participating in this offering, may violatethe registration requirements of the Securities Act if such offer or sale is made otherwise than inaccordance with Rule 144A or pursuant to another registration exemption under the Securities Act.

The Notes will constitute a new class of securities with no established trading market.Approval-in-principle has been received for the listing and quotation of the Notes on the SGX-ST.The offering and settlement of the Notes is not conditioned upon obtaining the listing. The Issuerdoes not intend to apply for listing or quotation of the Notes on any national securities exchangein the United States or through Nasdaq. However, there can be no assurance that the prices atwhich the Notes will sell in the market after this offering will not be lower than the initialoffering price or that an active trading market for the Notes after the completion of the offeringwill develop and continue after this offering. The Initial Purchasers have advised us that theycurrently intend to make a market in the Notes. However, they are not obligated to do so and maydiscontinue any market-making activities with respect to the Notes at any time without notice. Inaddition, market-making activity will be subject to the limits imposed by applicable law.Accordingly, there can be no assurance that the trading market for the Notes will have anyliquidity.

In connection with this offering, Barclays Bank PLC, as stabilizing manager, or any personacting for it, may purchase and sell Notes in the open market. These transactions may, to theextent permitted by law, include short sales, stabilizing transactions and purchases to coverpositions created by short sales. Short sales involve the sale of a greater amount of Notes than theInitial Purchasers are required to purchase in this offering. Stabilizing transactions consist ofcertain bids or purchases for the purpose of preventing or retarding a decline in the market priceof the Notes while this offering is in progress. These activities, to the extent permitted by law,may stabilize, maintain or otherwise affect the market price of the Notes. These activities may beconducted in the over-the-counter market or otherwise. As a result, the price of the Notes may behigher than the price that otherwise might exist in the open market. If these activities arecommenced, they may be discontinued at any time and must in any event be brought to an endafter a limited time. These activities will be undertaken solely for the account of Barclays BankPLC, as stabilizing manager, and not for and on behalf of the Issuer.

The Initial Purchasers or their affiliates have performed commercial banking, investmentbanking or advisory services for the Issuer and the Parent Guarantor from time to time for whichthey have received customary fees and reimbursement of expenses. The Initial Purchasers or theiraffiliates may, from time to time, engage in transactions with and perform services for the Issuerand the Parent Guarantor in the ordinary course of business for which they may receive customaryfees and reimbursement of expenses. The Issuer and the Parent Guarantor may enter into hedgingor other derivative transactions as part of our risk management strategy with one or more of theInitial Purchasers, which may include transactions relating to the Issuer’s obligations under theNotes or the Parent Guarantor’s obligations under the Parent Guarantee.

In connection with this offering of the Notes, each Initial Purchaser and/or its affiliate(s)may act as an investor for its own account and may take up Notes in the offering, but not with aview to distribute, and in that capacity may retain, purchase or sell for its own account suchsecurities and any securities of the Issuer or the Parent Guarantor or related investments and mayoffer or sell such securities or other investments otherwise than in connection with the offering ofthe Notes. Accordingly, references herein to the Notes being offered should be read as includingany offering of the Notes to the Initial Purchasers and/or their affiliates acting in such capacity.Such persons do not intend to disclose the extent of any such investment or transactions otherwisethan in accordance with any legal or regulatory obligation to do so.

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Delivery of the Notes is expected on or about September 13, 2016 which is the third businessday following the date of this offering memorandum (such settlement cycle being referred to as“T+3”).

Selling Restrictions

General

No action has been taken or will be taken in any jurisdiction by the Issuer, the ParentGuarantor or the Initial Purchasers that would permit a public offering of the Notes, or thepossession, circulation or distribution of this offering memorandum or any other material relatingto the Notes or this offering, in any jurisdiction where action for that purpose is required.Accordingly, the Notes may not be offered or sold, directly or indirectly, and neither this offeringmemorandum nor such other material may be distributed or published, in or from any country orjurisdiction except in compliance with any applicable rules and regulations of such country orjurisdiction.

United States

The Notes have not been and will not be registered under the Securities Act and may not beoffered or sold within the United States except in transactions exempt from, or not subject to, theregistration requirements of the Securities Act and applicable state securities laws. In addition, anoffer or sale of Notes within the United States by a dealer (whether or not participating in thisoffering) may violate the registration requirements of the Securities Act if such offer or sale ismade otherwise than in accordance with Rule 144A.

The Initial Purchasers, through their respective affiliates acting as selling agents, whereapplicable, propose to offer the Notes in offshore transactions in reliance on Regulation S and inaccordance with applicable law and propose to offer the Notes to qualified institutional buyers inthe United States pursuant to Rule 144A. Each Initial Purchaser has severally represented andagreed that, except as permitted under the Purchase Agreement, it will not offer, sell or deliver theNotes within the United States. Any offer or sale of the Notes in the United States in reliance onRule 144A will be made by broker-dealers who are registered as such under the Exchange Act.Terms used in this paragraph have the meanings given to them by Regulation S. Transfer of theNotes will be restricted as described under “Transfer Restrictions.”

European Union

In relation to each Member State of the European Economic Area which has implemented theProspectus Directive (each, a “Relevant Member State”), each Initial Purchaser has representedand agreed with us that with effect from and including the date on which the Prospectus Directiveis implemented in that Relevant Member State (the “Relevant Implementation Date”) it has notmade and will not make an offer of the Notes to the public in that Relevant Member State otherthan:

a. to any legal entity which is a “qualified investor” as defined in the ProspectusDirective;

b. to fewer than 150 natural or legal persons (other than “qualified investors” as defined inthe Prospectus Directive), as permitted under the Prospectus Directive, subject toobtaining the prior written consent of the Initial Purchasers for any such offer; or

c. in any other circumstances falling within Article 3(2) of the Prospectus Directive.

provided that no such offer of the Notes shall require the Issuer, the Parent Guarantor or anyInitial Purchaser to publish a prospectus pursuant to Article 3 of the Prospectus Directive andprovided as set out under “The Netherlands” below.

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For the purposes of this provision, the expression an “offer of Notes to the public” in any

Relevant Member State means the communication in any form and by any means of sufficient

information on the terms of the offer and the Notes to be offered so as to enable an investor to

decide to purchase or subscribe the Notes, as the same may be varied in that Relevant Member

State by any measure implementing the Prospectus Directive in that Relevant Member State; the

expression “Prospectus Directive” means Directive 2003/71/EC (and amendments thereto,

including Directive 2010/73/EU), and includes any relevant implementing measure in the Relevant

Member State.

The sellers of the Notes have not authorized and do not authorize the making of any offer of

the Notes through any financial intermediary on their behalf, other than offers made by the Initial

Purchasers with a view to the final placement of the Notes as contemplated in this offering

memorandum. Accordingly, no purchaser of the Notes, other than the Initial Purchasers, is

authorized to make any further offer of the Notes on behalf of the sellers or the Initial Purchasers.

United Kingdom

Each Initial Purchaser has severally represented and agreed that:

a. it has only communicated or caused to be communicated and will only communicate or

cause to be communicated an invitation or inducement to engage in investment activity

(within the meaning of Section 21 of the Financial Services and Markets Act of 2000

(the “FSMA”)) received by it in connection with the issue or sale of the Notes in

circumstances in which Section 21(1) of the FSMA does not apply to the Issuer; and

b. it has complied and will comply with all applicable provisions of the FSMA with

respect to anything done by it in relation to the Notes in, from or otherwise involving

the United Kingdom.

Hong Kong

Each Initial Purchaser has severally represented and agreed that: (i) it has not offered or sold

and will not offer or sell in Hong Kong, by means of any document, any Notes other than (a) in

circumstances which do not constitute an offer to the public within the meaning of the Companies

(Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32, Laws of Hong Kong), (b) to

“professional investors” as defined in the Securities and Futures Ordinance (Cap. 571, Laws of

Hong Kong) and any rules made thereunder; or (c) in other circumstances which do not result in

the document being a “prospectus” as defined in the Companies (Winding Up and Miscellaneous

Provisions) Ordinance (Cap. 32, Laws of Hong Kong); and (ii) it has not issued or had in its

possession for the purposes of issue, and will not issue or have in its possession for the purposes

of issue, whether in Hong Kong or elsewhere, any advertisement, invitation or document relating

to the Notes, which is directed at, or the contents of which are likely to be accessed or read by,

the public of Hong Kong (except if permitted to do so under the securities laws of Hong Kong)

other than with respect to the Notes which are or are intended to be disposed of only to persons

outside Hong Kong or only to “professional investors” as defined in the Securities and Futures

Ordinance (Cap. 571, Laws of Hong Kong) and any rules made thereunder.

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Singapore

Each Initial Purchaser has severally acknowledged that this offering memorandum has notbeen and will not be registered as a prospectus with the Monetary Authority of Singapore underthe Securities and Futures Act, Chapter 289 of Singapore (the “SFA”). Accordingly, each InitialPurchaser has severally represented and agreed that it has not offered or sold any Notes or causedthe Notes to be made the subject of an invitation for subscription or purchase, nor will it offer orsell the Notes or cause the Notes to be made the subject of an invitation for subscription orpurchase, and has not circulated or distributed, nor will it circulate or distribute, this offeringmemorandum or any other document or material in connection with the offer or sale or invitationfor subscription or purchase of the Notes, whether directly or indirectly, to persons in Singaporeother than (i) to an institutional investor pursuant to Section 274 of the SFA, (ii) to a relevantperson pursuant to Section 271(1), or any person pursuant to Section 275(1A) of the SFA, and inaccordance with the conditions specified in Section 275 of the SFA or (iii) pursuant to, and inaccordance with the conditions of, any other applicable provision of the SFA.

Where the Notes are subscribed or purchased under Section 275 of the SFA by a relevantperson which is:

(a) a corporation (which is not an accredited investor (as defined in Section 4A of theSFA)) the sole business of which is to hold investments and the entire share capital ofwhich is owned by one or more individuals, each of whom is an accredited investor; or

(b) a trust (where the trustee is not an accredited investor) whose sole purpose is to holdinvestments and each beneficiary of the trust is an individual who is an accreditedinvestor,

securities (as defined in Section 239(1) of the SFA) of that corporation or the beneficiaries’ rightsand interests (howsoever described) in that trust shall not be transferred within six months afterthat corporation or that trust has acquired the Notes pursuant to an offer made under Section 275of the SFA except:

(1) to an institutional investor or to a relevant person defined in Section 275(2) of the SFA,or to any person arising from an offer referred to in Section 275(1A) or Section276(4)(i)(B) of the SFA;

(2) where no consideration is or will be given for the transfer;

(3) where the transfer is by operation of law;

(4) pursuant to Section 276(7) of the SFA; or

(5) as specified in Regulation 32 of the Securities and Futures (Offer of Investment)(Shares and Debentures) Regulation 2005 Singapore.

Indonesia

The offering of Notes is not registered under the Indonesian Capital Market Law and itsimplementing regulations, and is not intended to become a public offering of securities under theIndonesian Capital Market Law and its implementing regulations. Accordingly:

a. this offering memorandum may not be distributed within Indonesia or to persons whoare citizens of Indonesia (wherever they are domiciled or located) or entities orresidents in Indonesia; and/or

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b. the Notes may not be offered or sold, directly or indirectly, within Indonesia or to

Indonesian citizens (wherever they are domiciled or located), entities or residents,

in any manner which constitutes a public offering of securities under the Indonesian Capital

Market Law and its implementing regulations.

The Netherlands

The Notes are not and may not be offered in the Netherlands other than to persons or entities

who or which are qualified investors as defined in the Prospectus Directive.

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TRANSFER RESTRICTIONS

The Notes are subject to restrictions on transfer as summarized below. By purchasing Notes,you will be deemed to have made the following acknowledgements, representations to andagreements with the Issuer, the Parent Guarantor and the Initial Purchasers:

(1) You acknowledge that:

• the Notes and the Parent Guarantee have not been and will not be registered underthe Securities Act or any other securities laws and are being offered for resale intransactions that do not require registration under the Securities Act or any othersecurities laws; and

• unless so registered, the Notes and the Parent Guarantee may not be offered, soldor otherwise transferred except under an exemption from, or in a transaction notsubject to, the registration requirements of the Securities Act or any otherapplicable securities laws, and in each case in compliance with the conditions fortransfer set forth in paragraph (5) below.

(2) You represent that you are not an affiliate (as defined in Rule 144 under the SecuritiesAct) of the Issuer or the Parent Guarantor, that you are not acting on behalf of theIssuer or the Parent Guarantor and that either:

• you are a qualified institutional buyer (as defined in Rule 144A) and arepurchasing the Notes for your own account or for the account of another qualifiedinstitutional buyer, and you are aware that the Initial Purchasers are selling theNotes to you in reliance on Rule 144A; or

• you are purchasing the Notes in an offshore transaction in accordance withRegulation S.

(3) You acknowledge that none of the Issuer, the Parent Guarantor and the InitialPurchasers or any person representing the Issuer, the Parent Guarantor or the InitialPurchasers has made any representation to you with respect to the Issuer, the ParentGuarantor or the offering of the Notes, other than the information contained in thisoffering memorandum. You represent that you are relying only on this offeringmemorandum in making your investment decision with respect to the Notes. You agreethat you have had access to such financial and other information concerning the Issuerand the Parent Guarantor and the Notes as you have deemed necessary in connectionwith your decision to purchase Notes, including an opportunity to ask questions of andrequest information from the Issuer and the Parent Guarantor.

(4) You represent that you are purchasing Notes for your own account, or for one or moreinvestor accounts for which you are acting as a fiduciary or agent, in each case not witha view to, or for offer or sale in connection with, any distribution of the Notes inviolation of the Securities Act, subject to any requirement of law that the disposition ofyour property or the property of that investor account or accounts be at all times withinyour or their control and subject to your or their ability to resell the Notes pursuant toRule 144A or any other available exemption from registration under the Securities Act.

(5) You agree on your own behalf and on behalf of any investor account for which you arepurchasing Notes, and each subsequent holder of the Notes by its acceptance of theNotes will agree, that until the end of the Resale Restriction Period (as defined below),the Notes may be offered, sold or otherwise transferred only:

(a) to the Issuer, the Parent Guarantor or any of their respective affiliates;

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(b) to a person the seller reasonably believes is a qualified institutional buyerpurchasing for its own account or for the account of another qualified institutionalbuyer in compliance with Rule 144A;

(c) outside the United States in an offshore transaction in compliance with Rules 903or 904 under the Securities Act;

(d) pursuant to the exemption from registration provided by Rule 144 under theSecurities Act (if available); or

(e) pursuant to an effective registration statement under the Securities Act. You alsoacknowledge that:

• the above restrictions on resale will apply from the closing date until the datethat is one year (or such shorter period of time that may be permitted byRule 144) (in the case of Rule 144A Notes) after the later of the closing dateand the last date that the Issuer, the Parent Guarantor or any of theirrespective affiliates was the owner of the Notes or any predecessor of theNotes (the “Resale Restriction Period”), and will not apply after theapplicable Resale Restriction Period ends;

• the Issuer and the Trustee reserve the right to require in connection with anyoffer, sale or other transfer of Notes under clause (d) above the delivery ofan opinion of counsel, certifications and other information satisfactory to theIssuer and the Trustee; and

• each Note will contain a legend substantially to the following effect:

THIS NOTE AND THE PARENT GUARANTEE RELATED TO THIS NOTEHAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF1933, AS AMENDED (THE “SECURITIES ACT”) AND, ACCORDINGLY,THIS NOTE MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISETRANSFERRED WITHIN THE UNITED STATES EXCEPT AS SET FORTHIN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF OR OFA BENEFICIAL INTEREST HEREIN, THE HOLDER (1) REPRESENTSTHAT (A) IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINEDIN RULE 144A UNDER THE SECURITIES ACT) (A “QIB”) OR (B) ISACQUIRING THIS NOTE IN AN OFFSHORE TRANSACTION INCOMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT, (2)AGREES THAT IT WILL NOT, PRIOR TO THE DATE THAT IS [IN THECASE OF NOTES INITIALLY SOLD IN RELIANCE ON RULE 144A: ONEYEAR (OR SUCH SHORTER PERIOD OF TIME THAT MAY BEPERMITTED BY RULE 144 UNDER THE SECURITIES ACT AS INEFFECT ON THE DATE OF THE TRANSFER OF THIS NOTE)] AFTERTHE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LASTDATE THAT THE ISSUER, THE PARENT GUARANTOR OR ANY OFTHEIR RESPECTIVE AFFILIATES WAS THE OWNER OF THE NOTES ORANY PREDECESSOR OF THE NOTES, RESELL OR OTHERWISETRANSFER THIS NOTE EXCEPT (A) TO THE ISSUER, THE PARENTGUARANTOR OR ANY OF THEIR RESPECTIVE AFFILIATES, (B) TO APERSON WHOM THE HOLDER REASONABLY BELIEVES IS A QIBPURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF AQIB IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT,(C) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTIONIN COMPLIANCE WITH RULES 903 OR 904 UNDER THE SECURITIESACT, (D) PURSUANT TO THE EXEMPTION FROM REGISTRATIONPROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF

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AVAILABLE), OR (E) PURSUANT TO AN EFFECTIVE REGISTRATION

STATEMENT UNDER THE SECURITIES ACT AND, IN EACH CASE, IN

ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, AND (3)AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THISNOTE OR AN INTEREST HEREIN IS TRANSFERRED A NOTICESUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. IN CONNECTIONWITH ANY TRANSFER OF THIS NOTE OR ANY INTEREST HEREINWITHIN THE TIME PERIOD REFERRED TO ABOVE, THE HOLDERMUST CHECK THE APPROPRIATE BOX SET FORTH ON THE REVERSEHEREOF RELATING TO THE MANNER OF SUCH TRANSFER ANDSUBMIT THIS CERTIFICATE TO THE TRUSTEE. AS USED HEREIN, THETERMS “OFFSHORE TRANSACTION” AND “UNITED STATES” HAVETHE MEANINGS GIVEN TO THEM BY RULE 902 OF REGULATION SUNDER THE SECURITIES ACT. THE INDENTURE CONTAINS APROVISION REQUIRING THE TRUSTEE TO REFUSE TO REGISTER ANYTRANSFER OF THIS NOTE IN VIOLATION OF THE FOREGOINGRESTRICTIONS. THIS LEGEND WILL BE REMOVED UPON THEREQUEST OF THE HOLDER AFTER THE DATE THE APPLICABLERESALE RESTRICTIONS TERMINATE.

(6) You acknowledge, understand and agree that: (a) you will, and eachsubsequent purchaser is required to, notify any subsequent purchaser of theNotes from you of the resale restrictions referred to in (5) above; and (b) norepresentation can be made as to the availability of any exemption providedby Rule 144 under the Securities Act for resale of the Notes.

(7) You acknowledge that this offering memorandum has not been and will not beregistered as a prospectus with the Monetary Authority of Singapore.Accordingly, you represent and warrant that you have not offered or sold anyNotes or caused the Notes to be made the subject of an invitation forsubscription or purchase and will not offer or sell any Notes or cause theNotes to be made the subject of an invitation for subscription or purchase,and have not circulated or distributed, nor will it circulate or distribute, thisoffering memorandum or any other document or material in connection withthe offer or sale, or invitation for subscription or purchase, of the Notes,whether directly or indirectly, to persons in Singapore other than (i) to aninstitutional investor under Section 274 of the Securities and Futures Act,Chapter 289 of Singapore (the “SFA”), (ii) to a relevant person pursuant toSection 275(1) of the SFA, or any person pursuant to Section 275(1A) of theSFA, and in accordance with the conditions specified in Section 275 of theSFA, or (iii) otherwise pursuant to, and in accordance with the conditions of,any other applicable provision of the SFA.

(8) You acknowledge that the Issuer, the Parent Guarantor, the Initial Purchasersand others will rely upon the truth and accuracy of the aboveacknowledgments, representations and agreements. You agree that if any ofthe acknowledgments, representations or agreements you are deemed to havemade by your purchase of Notes is no longer accurate, you will promptlynotify the Issuer, the Parent Guarantor and the Initial Purchasers. If you arepurchasing any Notes as a fiduciary or agent for one or more investoraccounts, you represent that you have sole investment discretion with respectto each of those accounts and that you have full power to make the aboveacknowledgments, representations and agreements on behalf of each account.

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RATINGS

The Notes are expected to be rated “BB” by Standard & Poor’s Ratings Group, Inc. and

“Ba2” by Moody’s Investors Services, Inc. The ratings reflect the rating agencies’ assessment of

the likelihood of timely payment of the principal of and interest on the Notes. The ratings do not

address the payment of any additional amounts and do not constitute recommendations to

purchase, hold or sell the Notes inasmuch as such ratings do not comment as to market price or

suitability for a particular investor. There can be no assurance that the ratings will remain in

effect for any given period or that the ratings will not be revised by such rating agencies in the

future if in their judgment circumstances so warrant. Each such rating should be evaluated

independently of any other rating on the Notes, on other securities of the Issuer or the Parent

Guarantor, or on the Issuer or the Parent Guarantor.

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LEGAL MATTERS

Certain legal matters with respect to the Notes will be passed upon for the Issuer and the

Parent Guarantor by Shearman & Sterling as to matters of United States federal securities law and

by Assegaf Hamzah & Partners as to matters of Indonesian law. Certain legal matters will be

passed upon for the Initial Purchasers by Davis Polk and Wardwell as to matters of United States

federal securities law and by Hiswara Bunjamin & Tandjung as to matters of Indonesian law

(excluding Indonesian tax law). Certain legal matters have been passed upon in connection with

the offering of the Notes by Linklaters LLP as to matters of Dutch law (excluding Dutch tax law).

INDEPENDENT PUBLIC ACCOUNTANTS

Our consolidated financial statements as of December 31, 2013, 2014 and 2015 and for the

years then ended, included in this offering memorandum, have been audited by Purwantono,

Sungkoro & Surja (a member firm of Ernst & Young Global Limited) (“PSS”) in accordance with

Standards on Auditing established by the Indonesian Institute of Certified Public Accountants

(“IICPA”), as stated in their audit report also included in this offering memorandum. Our

unaudited interim consolidated financial statements as of June 30, 2016 and for the six-month

periods ended June 30, 2016 and 2015, included in this offering memorandum, have been reviewed

by Purwantono, Sungkoro & Surja (a member firm of Ernst & Young Global Limited) in

accordance with Standard on Review Engagements 2410, “Review of Interim Financial Information

Performed by the Independent Auditor of the Entity” (“SRE 2410”), established by the IICPA, as

stated in their review report also included in this offering memorandum. A review is substantially

less in scope than an audit conducted in accordance with Standards on Auditing established by

IICPA and therefore PSS do not express an audit opinion on such financial information. Our

consolidated financial statements are presented in U.S. Dollars. We have prepared and presented

our consolidated financial statements in accordance with Indonesian Financial Accounting

Standards.

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GENERAL INFORMATION

Consents

The Issuer and Cikarang Listrindo have obtained all necessary consents, approvals andauthorizations in The Netherlands and Indonesia in connection with the issue and performance ofthe Notes and the Parent Guarantee. The issue of the Notes by the Issuer has been authorized by aresolution of the management board of the Issuer adopted in a meeting held on August 23, 2016and a written resolution of the sole shareholder of the Issuer dated August 25, 2016. The enteringinto of the Intercompany Loan with Cikarang Listrindo has been duly authorized by a resolutionof the management board of Signal Capital in a meeting held on September 5, 2016 and aresolution of the sole shareholder of Signal Capital adopted in a meeting held on September 5,2016. The giving of the Parent Guarantee and the entering into the Intercompany Loan have beenauthorized by a resolution of the shareholders of the Parent Guarantor adopted in a meeting heldon August 26, 2016, a resolution of the board of commissioners of the Parent Guarantor datedAugust 15, 2016 and a resolution of the board of directors of the Parent Guarantor dated August15, 2016.

Litigation

Except as described in “Business—Legal Proceedings”, there are no legal or arbitrationproceedings against or affecting the Issuer, the Parent Guarantor, any of their respectivesubsidiaries or any of their respective assets, nor are they aware of any pending or threatenedproceedings, which are or might be material in the context of this issue of the Notes or the ParentGuarantee.

Documents Available

For so long as any of the Notes are outstanding, copies of the Indenture may be inspectedfree of charge during normal business hours on any weekday (except public holidays) at thespecified offices of the Paying Agent.

For so long as any of the Notes are outstanding, copies of Cikarang Listrindo’s auditedconsolidated financial statements for the last two financial years, if any, may be obtained duringnormal business hours on any weekday (except public holidays) at the specified offices of thePaying Agent.

Clearing System and Settlement

The Notes have been accepted for clearance through the facilities of DTC. The followingtable sets forth certain trading information with respect to the Notes:

Rule 144A Notes Regulation S Notes

CUSIP ........................................................................................................ 536576 AD3 N5276Y AD8

ISIN ........................................................................................................... US536576AD36 USN5276YAD87

The Notes evidenced by a Global Note have been accepted for clearance through DTC.

Listing of the Notes

Approval-in-principle has been received for the listing and quotation of the Notes on theSGX-ST. The SGX-ST assumes no responsibility for the correctness of any of the statements madeor opinions or reports contained in this offering memorandum. Approval-in-principle from, andadmission of the Notes to the Official List of, the SGX-ST and quotation of the Notes on theSGX-ST are not to be taken as an indication of the merits of the Issuer, the Parent Guarantor orthe Notes. The Notes will be traded on the SGX-ST in a minimum board lot size of US$200,000for so long as the Notes are listed on the SGX-ST.

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For so long as the Notes are listed on the SGX-ST and the rules of the SGX-ST so require,

the Issuer will appoint and maintain a paying agent in Singapore, where the Notes may be

presented or surrendered for payment or redemption, in the event that a Global Note is exchanged

for definitive Notes. In addition, in the event that a Global Note is exchanged for definitive Notes,

an announcement of such exchange shall be made by or on behalf of the Issuer through the

SGX-ST, and such announcement will include all material information with respect to the delivery

of the definitive Notes, including details of the paying agent in Singapore.

Accounts

The first fiscal year of the Issuer ended on December 31, 2007. The Issuer prepares annual

audited consolidated financial statements. The Issuer has one subsidiary, Signal Capital. For so

long as any of the Notes are outstanding, copies of the audited consolidated financial statements

of the Issuer and the Parent Guarantor for the last two financial years, if any, may be obtained

during normal business hours on any weekday (excluding public holidays) from the registered

office of the Issuer and from the specified offices of the Trustee.

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SUMMARY OF SIGNIFICANT DIFFERENCES BETWEEN INDONESIAN FAS AND U.S.GAAP

Our consolidated financial statements included elsewhere in this offering memorandum are

prepared and presented in accordance with Indonesian FAS. Significant differences exist between

Indonesian FAS and U.S. GAAP, which might be material to the consolidated financial statements

herein. The matters described below should not be expected to reveal all differences between

Indonesian FAS and U.S. GAAP that are relevant to us.

Management has made no attempt to quantify the impact of those differences, nor has any

attempt been made to identify all disclosure, presentation, or classification differences that would

affect the manner in which transactions or events are presented in the consolidated financial

statements. Had any such quantification or identification been undertaken by management, other

potential significant accounting and disclosure differences may have come to its attention which

are not summarized below. Accordingly, it should not be construed that the following summary of

significant differences between Indonesian FAS and U.S. GAAP is complete.

Regulatory bodies that promulgate Indonesian FAS and U.S. GAAP have significant ongoing

projects that could affect future comparisons such as this one. Further, no attempt has been made

to identify future differences between Indonesian FAS and U.S. GAAP as a result of prescribed

changes in accounting standards and regulations. Finally, no attempt has been made to identify all

future differences between Indonesian FAS and U.S. GAAP that may affect the consolidated

financial statements as a result of transactions or events that may occur in future.

Management believes that the application of U.S. GAAP to the consolidated financial

statements could have a material and significant impact upon the consolidated financial

statements reported under Indonesian FAS. In making an investment decision, investors must rely

upon their own examination of us, terms of the offering, and the consolidated financial statements.Potential investors should consult their own professional advisors for an understanding of thedifferences between Indonesian FAS and U.S. GAAP, and how those differences might affect theconsolidated financial statements included herein.

Consolidation and Equity-Method Investment

Under Indonesian FAS, when an entity owns, directly or indirectly through one or moresubsidiaries, more than 50 percent of the voting rights of another entity, it should presentconsolidated financial statements. An entity that owns 50 percent or less of the voting rights of acompany is required to prepare consolidated financial statements if it can prove that control exists.Control is presumed to exist when the parent company owns, directly or indirectly throughsubsidiaries, more than 50 percent of the voting rights of an entity. When an entity owns 50percent or less of the voting rights of another entity, control exists when one of the followingconditions is met:

(i) having more than 50 percent of the voting rights by virtue of an agreement with otherinvestors;

(ii) having the right to govern the financial and operating policies of the entity under thearticles of association or an agreement;

(iii) having the ability to appoint or remove the majority of the members of management;and

(iv) having the ability to control the majority of votes at meetings of management.

253

Under Indonesian FAS, a special-purpose entity (“SPE”) will be consolidated if the substanceof the relationship between an entity and the SPE indicates that the SPE is controlled by thatentity. Control may exist through the predetermination of the activities of the SPE or otherwise.The application of the control concept requires consideration of all relevant factors.

Under Indonesian FAS, generally the equity-method of accounting shall be used by investors(other than venture capital organizations, mutual funds, unit trusts, and similar entities) to accountfor their investments in associates in consolidated financial statements. Prior to the issuance of theIndonesian Statement of Financial Accounting Standards (“SFAS”) No. 4 (Revised 2009),“Consolidated and Separate Financial Statements” (“SFAS No. 4(R)”), which applies toconsolidated financial statements relating to periods beginning on or after January 1, 2011,presentation of separate consolidated financial statements (that is, those presented by a parent orinvestor) (parent-only financial statements) was not permitted. After the issuance of SFAS No.4(R), if separate consolidated financial statements are presented by a parent or investor(parent-only financial statements), subsidiaries and associates shall be accounted for either at costor in accordance with SFAS No. 55 (Revised 2006), “Financial Instruments: Recognition andMeasurement”. Further, uniform accounting policies between investors and investees are required.

Under U.S. GAAP, consolidation generally is required when one of the companies in a groupdirectly or indirectly has a controlling financial interest in the other companies. The usualcondition for controlling financial interest is ownership of a majority of the voting interest and,therefore, as a general rule, ownership by one entity, directly or indirectly, of over 50 percent ofthe outstanding voting shares of another entity is a condition pointing towards consolidation.Consolidation of majority-owned subsidiaries is required in the preparation of consolidatedfinancial statements, unless control is likely to be temporary or if it does not rest with themajority owner.

Under U.S. GAAP, an entity is also to be considered for consolidation if the entity is avariable-interest entity (“VIE”). An entity shall consolidate a VIE if that entity has a variableinterest that will absorb a majority of the VIE’s expected losses, receive a majority of the entity’sexpected residual returns, or both. An entity shall consider the rights and obligations conveyed byits variable interests and the relationship of its variable interests with variable interests held byother parties to determine whether its variable interests will absorb a majority of the VIE’sexpected losses, receive the majority of the VIE’s expected residual returns, or both. If one entitywill absorb a majority of a VIE’s expected losses and another entity will receive a majority of thatVIE’s expected residual returns, the entity absorbing a majority of the losses shall consolidate theVIE. The entity that consolidates a VIE is called the primary beneficiary of that VIE. A primarybeneficiary of a VIE is an entity that has both of the following: (i) the power to direct theactivities of a VIE that most significantly impact the VIE’s economic performance, and (ii) theobligation to absorb losses of the VIE that could potentially be significant to the VIE, or the rightto receive benefits from the VIE that could potentially be significant to the VIE.

Under U.S. GAAP, entities are provided with the option to account for equity-methodinvestments at their fair value or equity-method of accounting. Further, uniform accountingpolicies between investor and investee are not required.

Inventories

Under Indonesian FAS, inventories are measured at the lower of cost or net realizable value.Net realizable value is defined as the estimated selling price in the ordinary course of businessless the estimated costs of completion and the estimated costs necessary to make the sale.

Under Indonesian FAS, the use of the LIFO method in determining the cost of inventory isnot permitted.

254

Under Indonesian FAS, when the circumstances that previously caused inventories to bewritten down below cost no longer exist or when there is clear evidence of an increase in netrealizable value because of changed economic circumstances, the amount of the write-down isreversed (the reversal is limited to the amount of the original write-down) so that the new carryingamount is the lower of the cost and the revised net realizable value.

Under U.S. GAAP, inventories are carried at the lower of cost or market value. Market valueis defined as the current replacement cost (by purchase or by reproduction), provided that it meetsboth of the following conditions: (i) market value shall not exceed net realizable value and (ii)market value shall not be less than net realizable value reduced by an allowance for anapproximately normal profit margin.

Under U.S. GAAP, the use of the LIFO method in determining the cost of inventory ispermitted.

Under U.S. GAAP, inventories that were previously written-down below cost cannot bereversed.

Land Rights

In Indonesia, except for ownership rights granted to individuals, the title to land rests withthe Government of the Republic of Indonesia under the Agrarian Law No. 5 of 1960. Land use isaccomplished through land rights, whereby the holder of the rights enjoys the full use of the landfor a stated period of time, subject to extensions. Under Indonesian FAS, land right is notdepreciated, unless management believes that it is highly unlikely that extensions of the land rightwill not be granted by the Government. The predominant practice is to capitalize (and not toamortize) the costs of acquired land rights, as entities generally believe that extensions of landrights will be granted by the Government. Other expenses associated with the acquisition ofGovernment permits to use land, including legal fees, area survey and re-measurement fees, notaryfees, and taxes, are capitalized and amortized over the period of the right to use the land.

Under U.S. GAAP, the costs and other expenses associated with the acquisition of land rightsare capitalized and amortized over the period of the right to use the land.

Borrowing Costs

Under Indonesian FAS, eligible borrowing costs to be capitalized as part of qualifying assetsinclude exchange rate differences from foreign currency borrowings. For borrowings associatedwith a specific qualifying asset, actual borrowing costs are capitalized and offset by investmentincome earned on those borrowings.

Under U.S. GAAP, eligible borrowing costs to be capitalized as part of qualifying assets donot include exchange rate differences. Interest earned on the investment of borrowed fundsgenerally cannot offset interest costs incurred during the period. For borrowings associated with aspecific qualifying asset, borrowing costs equal to the weighted-average accumulated expenditurestimes the borrowing rate are capitalized.

Revaluation of Fixed Assets

Under Indonesian FAS, fixed assets can be accounted for using either the cost model or therevaluation model. Under the revaluation model, fixed assets, the fair value of which can bereliably measured shall be recorded at a revalued amount, which is the fair value as of the date ofthe revaluation, less the accumulated depreciation and accumulated impairment losses subsequentto the revaluation date. If a fixed asset is revalued, then all fixed assets within the same categoryare also required to be revalued.

Under U.S. GAAP, revaluation of fixed assets is not permitted.

255

Impairment of Long-Lived Assets

Under Indonesian FAS, if indicators of impairment exist with respect to an asset, adetermination should be made as to whether the asset’s recoverable amount is less than itscarrying amount. An asset’s recoverable amount is the higher of net selling price or value in use.Net selling price is the amount obtained from the sale of an asset in an arm’s length transaction,after deducting the related costs. Value in use is the present value of estimated future cash flowsexpected to arise from the use of an asset and from its disposal at the end of its useful life. Wherean asset’s recoverable amount is less than its carrying amount, an impairment loss should berecognized in an amount equal to the excess of the carrying amount over its recoverable amount.Carrying values are increased for subsequent recoveries of fair value, provided that such increasedoes not exceed the original carrying value adjusted for depreciation.

Under U.S. GAAP, if indicators of impairment are present, a determination should be madeas to whether the sum of the estimated undiscounted future cash flows attributable to thelong-lived asset in question is less than its carrying amount. Where the sum of estimatedundiscounted future cash flows is less than the asset’s carrying amount, an impairment loss, equalto the excess of the carrying amount over its fair value, should be recognized. Reversal ofimpairment loss is not permitted.

Leases

Under Indonesian FAS, the determination of whether an arrangement is, or contains, a lease,is based on: (i) the substance of the arrangement at the date of inception, (ii) whether thefulfillment of the arrangement is dependent on the use of a specific asset, and (iii) whether thearrangement conveys a right to use the asset. Leases that transfer substantially to the lessee all therisks and rewards incidental to ownership of the leased item are classified as finance leases;otherwise they shall be classified as operating leases.

Under U.S. GAAP, a lease can be classified as a capital lease or an operating lease. From thelessee’s perspective, a lease is a capital lease if it meets any one of the following criteria: (i)ownership is transferred to the lessee by the end of the lease term, (ii) the lease contains a bargainpurchase option, (iii) the lease term is at least 75 percent of the property’s estimated remainingeconomic life, or (iv) the present value of the minimum lease payments at the beginning of thelease term is 90 percent or more of the fair value of the leased property to the lessor at date ofinception, less any related investment tax credit.

Employee Benefits

Under Indonesian FAS, actuarial gains and losses or “remeasurements” are recognizedimmediately in Other Comprehensive Income. It is not permissible to recognize gains/losses inprofit or loss. Gains and losses are not subsequently recognized in profit or loss. In addition, the“corridor and spreading” option—which allows delayed recognition of actuarial gains andlosses—is prohibited.

Under Indonesian FAS, an entity is required to recognize immediately all past-service costsin profit or loss, regardless of vesting requirements. A plan amendment that reduces the obligationto employees can be a negative past service cost.

Under U.S. GAAP, past service costs and deferred actuarial gains and losses are amortized ona straight-line basis over the future service lives of employees or, for inactive employees, over theremaining life expectancy of those participants.

Income Taxes

Under Indonesian FAS, there is no specific accounting standard which prescribes theaccounting for uncertainty in income taxes, such as the likelihood of amendments to taxationobligations. The general practice for amendments to taxation obligations is that they are recorded

256

when an assessment is received from the tax authorities or, for assessment amounts appealedagainst by the entity when: (i) the result of the appeal is determined, unless if there is significantuncertainty as to the outcome of such appeal, in which event the impact of the amendment totaxation obligations based on an assessment is recognized at the time of making such appeal, or(ii) the positive outcome of the entity’s appeal is adjudged to be significantly uncertain (based onknowledge of developments in similar cases involving matters appealed by the entity, which isbased on rulings by the tax authorities), in which event the impact of the amendment of taxationobligations based on the assessment of the amounts appealed is recognized.

Under U.S. GAAP, an entity is required to recognize and measure its uncertain tax positions,which requires a two-step process, separating recognition from measurement. A benefit isrecognized when it is “more likely than not” to be sustained based on the technical merits of theposition. The amount of benefit to be recognized is based on the largest amount of tax benefit thatis more than 50 percent likely of being realized upon ultimate settlement.

Revenue Recognition

Under Indonesian FAS, conceptually revenue from the sale of goods or services should berecognized when all the following conditions have been satisfied: (i) the seller has transferred tothe buyer the significant risks and rewards of ownership of the goods or services, (ii) the sellerretains neither continuing managerial involvement (to the degree usually associated withownership) nor effective control over the goods or services sold, (iii) the amount of revenue canbe measured reliably, (iv) it is probable that the economic benefits associated with the transactionwill flow to the seller, and (v) the costs incurred or to be incurred with respect to the transactioncan be measured reliably.

Under U.S. GAAP, conceptually revenue is generally measured by the exchange values of theassets (goods or services) or liabilities involved, and recognition involves consideration of twofactors: (a) whether revenue has been realized or is realizable, and (b) whether revenue has beenearned. Revenue generally is realized or realizable and earned when all of the following criteriaare met: (i) persuasive evidence of an arrangement (i.e., a final understanding between the partiesas to the specific nature and terms of the agreed-upon transaction) exists, (ii) delivery hasoccurred or services have been rendered, (iii) the seller’s price to the buyer is fixed ordeterminable, and (iv) collectability is reasonably assured.

Business Combination

Under Indonesian FAS, prior to the issuance of SFAS No. 22 (Revised 2010), “BusinessCombinations” (“SFAS No. 22(R)”), which shall be applied prospectively to business combinationsfor which the acquisition date is on or after the beginning of the first annual reporting periodbeginning on or after January 1, 2011, minority interest (currently known as non-controllinginterest) is measured at its proportionate share of the pre-acquisition carrying amounts of theassets and liabilities of the acquiree. After the issuance of SFAS No. 22(R), non-controllinginterest is measured either at fair value (including goodwill) or at its proportionate share of thefair value of the identifiable net assets (exclusive of goodwill) of the acquiree.

Under Indonesian FAS, prior to the issuance of SFAS No. 22(R), goodwill is amortized usingthe straight-line method over the estimated useful life of the goodwill. After the issuance of SFASNo. 22(R), goodwill is no longer amortized, but is subject to impairment test.

Under U.S. GAAP, non-controlling interest is measured at fair value, which includes thenon-controlling interest’s share of goodwill.

Under U.S. GAAP, goodwill is not amortized, but is subject to impairment test.

257

GLOSSARY

The explanations of certain terms used in this offering memorandum are not intended astechnical definitions, but have been provided to assist the reader to understand certain terms asused in this offering memorandum. We have also included abbreviations and acronyms of certainunits of measurement in this offering memorandum.

Technical Terms

Btu/kWh-HHV ............................ The plant heat rate in British thermal units (Btu) calculated bymeasuring the higher heating value (HHV) of the fuel toproduce 1 net kWh of electricity.

Electricity generating plant ......... An electric generator together with the turbine or other devicewhich drives it.

Gigawatt (GW) ........................... 1,000,000,000 watts (1,000 megawatts).

Gigawatt hour (GWh) ................. One gigawatt of power supplied or demanded for one hour.

HSRG ......................................... Heat recovery steam generator.

Hz .............................................. Hertz.

Installed generation capacity ....... The maximum power which could be produced continuouslythroughout a prolonged period of operation. All equipment isassumed to be fully operational.

IPP ............................................. Independent Power Producer.

Kilovolt (kV) .............................. 1,000 volts.

kVA ............................................ Kilovolt Ampere.

kVARh ........................................ Kilovolt Ampere Hours.

Kilowatt (kW) ............................ 1,000 watts.

Kilowatt hour (kWh) ................... One kilowatt of power supplied or demanded for one hour.

Megavolt ampere (MVA) ............. 1,000,000 volts ampere.

Megawatt (MW) ......................... 1,000,000 watts (1,000 kilowatts).

Megawatt hour (MWh) ................ One megawatt of power supplied or demanded for one hour.

MMBtu ....................................... One million British thermal units.

MMSCF ...................................... Million Metric Standard Cubic Feet.

Substation ................................... Equipment which switches or changes or regulates the voltageof electricity in a transmission and distribution system.

Volt ............................................ The basic unit of electric force analogous to water pressure inpounds per square inch.

Volt ampere ................................ The basic unit of apparent electrical power.

Watt ............................................ The basic unit of active electrical power.

258

INDEX TO THE CONSOLIDATED FINANCIAL STATEMENTS

Page

Unaudited Interim Consolidated Financial Statements as of June 30, 2016 andfor the six-month periods ended June 30, 2016 and 2015 and Audited Consolidated FinancialStatements as of December 31, 2013, 2014 and 2015 and for the years then ended

Independent Auditors’ Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-6

Consolidated Statements of Financial Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-11

Consolidated Statements of Profit or Loss and Other Comprehensive Income . . . . . . . . . F-13

Consolidated Statements of Changes in Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-15

Consolidated Statements of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-18

Notes to the Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-19

F-1

F-2

F-3

F-4

F-5

F-6

F-7

F-8

F-9

F-10

The original consolidated financial statements included hereinare in the Indonesian language.

Catatan atas laporan keuangan konsolidasian terlampirmerupakan bagian integral dari laporan keuangan

konsolidasian ini.

The accompanying notes form an integral part of theseconsolidated financial statements.

1

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

LAPORAN POSISI KEUANGANKONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit) danTanggal 31 Desember 2015, 2014 dan 2013

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OFFINANCIAL POSITION

As of June 30, 2016 (Unaudited) andDecember 31, 2015, 2014 and 2013(Expressed in United States Dollar,

Unless Otherwise Stated)

30 Juni 2016/June 30, 2016 31 Desember/December 31,

Catatan/ (Tidak diaudit/Notes Unaudited) 2015 2014 2013

ASET ASSETS

ASET LANCAR CURRENT ASSETSKas dan setara kas 2e,2f,3,31 226.282.234 57.626.349 95.286.868 130.743.222 Cash and cash equivalentsPiutang usaha - neto 2f,4,31 66.969.001 70.920.109 60.540.711 58.591.731 Trade receivables - netPiutang lain - lain 2f,31 112.630 88.749 177.655 464.188 Other receivablesPersediaan - neto 2g,2s,5 28.771.953 23.769.073 25.528.109 25.165.903 Inventories - netUang muka 6 1.239.248 2.804.079 11.548.708 10.334.696 AdvancesPajak dibayar di muka 11h - 7.625.751 - - Prepaid taxBeban dibayar di muka 1.901.451 2.339.754 1.553.190 1.105.912 Prepaid expensesInvestasi 2f,7,31 310.766 - 1.985.210 13.842.310 InvestmentsRekening bank yang dibatasi

penggunaannya 2f,8,31 151.745 151.844 16.292.961 25.090.557 Restricted cash in banksTagihan pajak 2k,2s,11a - - 9.603.694 - Claims for tax refund

JUMLAH ASET LANCAR 325.739.028 165.325.708 222.517.106 265.338.519 TOTAL CURRENT ASSETS

ASET TIDAK LANCAR NON-CURRENT ASSETSPeralatan listrik yang tidak Electrical equipment not used

digunakan dalam operasi 10 355.513 436.522 236.937 258.862 in operationsAdvances for purchase of

Uang muka untuk property, plant andpembelian aset tetap equipmentPihak ketiga 27 52.173.418 47.113.602 54.966.662 59.384.784 Third partiesPihak berelasi 2c,19,27g 10.991.750 9.992.500 6.035.500 2.078.500 Related party

Tagihan pajak 2k,2r,11a 25.807.520 24.656.986 - 9.801.457 Claims for tax refundPinjaman karyawan 2f,31 116.160 70.718 62.769 64.530 Loans to employees

Property, plant andAset tetap - neto 2h,2i,2j,2s,9 797.830.722 754.328.679 614.438.885 489.950.176 equipment - netAset pajak tangguhan - neto 2k,2s,11f 49.007.076 2.711.764 3.780.823 6.385.450 Net deferred tax assetsAset tidak lancar lainnya 2f,31 259.308 1.082.988 198.073 231.800 Other non-current assets

JUMLAH ASET TOTAL NON-CURRENTTIDAK LANCAR 936.541.467 840.393.759 679.719.649 568.155.559 ASSETS

JUMLAH ASET 1.262.280.495 1.005.719.467 902.236.755 833.494.078 TOTAL ASSETS

F-11

The original consolidated financial statements included hereinare in the Indonesian language.

Catatan atas laporan keuangan konsolidasian terlampirmerupakan bagian integral dari laporan keuangan

konsolidasian ini.

The accompanying notes form an integral part of theseconsolidated financial statements.

2

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

LAPORAN POSISI KEUANGANKONSOLIDASIAN (lanjutan)

Tanggal 30 Juni 2016 (Tidak Diaudit) danTanggal 31 Desember 2015, 2014 and 2013

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OFFINANCIAL POSITION (continued)

As of June 30, 2016 (Unaudited) andDecember 31, 2015, 2014 and 2013(Expressed in United States Dollar,

Unless Otherwise Stated)

30 Juni 2016/June 30, 2016 31 Desember/December 31,

Catatan/ (Tidak diaudit/Notes Unaudited) 2015 2014 2013

LIABILITAS DAN EKUITAS LIABILITIES AND EQUITY

LIABILITAS LIABILITIES

LIABILITAS JANGKA PENDEK CURRENT LIABILITIESUtang usaha 2f,12,31 Trade payables

Pihak ketiga 27 36.445.658 38.156.073 25.765.737 20.255.214 Third partiesPihak berelasi 2c,19,27d 460.713 11.012 456.985 495.484 Related party

Utang lain-lain 2f, 27q,31 16.864.863 14.575.543 6.734.814 1.418.078 Other payablesUtang pajak 2k,2s,11b 10.732.596 17.517.935 17.516.464 5.772.340 Taxes payableBeban akrual 2f,13,31 19.008.928 14.463.246 13.878.246 13.871.074 Accrued expenses

JUMLAH LIABILITAS TOTAL CURRENTJANGKA PENDEK 83.512.758 84.723.809 64.352.246 41.812.190 LIABILITIES

LIABILITAS NON-CURRENTJANGKA PANJANG LIABILITIESUtang lain-lain - setelah

dikurangi bagian yang jatuh Other payables - net oftempo dalam satu tahun 2f,27q,31 2.060.500 2.960.564 - - current maturities

Liabilitas pajak tangguhan -neto 2k,2s,11f - 24.907.215 22.812.836 27.937.859 Net deferred tax liabilities

Jaminan pelanggan 2f,16,31 40.502.989 37.931.484 37.103.191 32.923.129 Customers’ depositsUtang wesel 2f,15,31 496.100.861 495.442.803 494.196.154 493.036.695 Notes payableEstimasi liabilitas Estimated liability for

imbalan kerja 2m,2s,14b 23.725.642 22.622.255 20.924.973 14.765.061 employee benefits

JUMLAH LIABILITAS TOTAL NON-CURRENTJANGKA PANJANG 562.389.992 583.864.321 575.037.154 568.662.744 LIABILITIES

JUMLAH LIABILITAS 645.902.750 668.588.130 639.389.400 610.474.934 TOTAL LIABILITIES

EKUITAS EQUITYModal saham - Rp200

nilai nominal per saham Share capital - Rp200pada tanggal 30 Juni 2016 par value per sharedan 31 Desember 2015 as of June 30, 2016 anddan Rp1.000.000 nilai December 31, 2015, andnominal per saham pada Rp1,000,000 par valuetanggal 31 Desember 2014 per share as ofdan 2013 December 31, 2014

Modal dasar - 57.913.760.000 and 2013saham pada tanggal Authorized - 57,913,760,00030 Juni 2016 dan shares as of June 30, 201631 Desember 2015 and December 31, 2015dan 1.068.000 saham and 1,068,000 sharespada tanggal 31 Desember as of December 31, 20142014 dan 2013 and 2013

Ditempatkan dan disetor penuh - Issued and fully paid - 16.087.156.000 saham 16,087,156,000 sharespada tanggal 30 Juni 2016, as of June 30, 2016,14.478.440.000 saham pada 14,478,440,000 sharestanggal 31 Desember 2015 as of December 31, 2015dan 1.068.000 saham and 1,068,000 shares aspada tanggal 31 Desember of December 31, 20142014 dan 2013 17 282.002.166 257.885.293 120.949.053 120.949.053 and 2013

Tambahan modal disetor 18 148.848.036 - - - Additional paid-in capitalPerubahan nilai wajar Changes in fair value of

investasi tersedia untuk available-for-saledijual 5.456 - (11.092) 453.976 investments

Saldo laba 185.522.087 79.246.044 141.909.394 101.616.115 Retained earnings

JUMLAH EKUITAS 616.377.745 337.131.337 262.847.355 223.019.144 TOTAL EQUITY

JUMLAH LIABILITAS TOTAL LIABILITIESDAN EKUITAS 1.262.280.495 1.005.719.467 902.236.755 833.494.078 AND EQUITY

F-12

The original consolidated financial statements included hereinare in the Indonesian language.

Catatan atas laporan keuangan konsolidasian terlampirmerupakan bagian integral dari laporan keuangan

konsolidasian ini.

The accompanying notes form an integral part of theseconsolidated financial statements.

3

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

LAPORAN LABA RUGI DAN PENGHASILANKOMPREHENSIF LAIN KONSOLIDASIAN

Untuk Periode Enam Bulan yang Berakhirpada Tanggal-tanggal 30 Juni 2016

dan 2015 (Tidak Diaudit) dan Tahun yangBerakhir pada Tanggal-tanggal

31 Desember 2015, 2014 dan 2013(Disajikan dalam Dolar Amerika Serikat,

Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF PROFITOR LOSS AND OTHER COMPREHENSIVE INCOME

For the Six-Month Periods EndedJune 30, 2016 and 2015 (Unaudited)

and the Years EndedDecember 31, 2015, 2014 and 2013

(Expressed in United States Dollar,Unless Otherwise Stated)

30 Juni/June 30, 31 Desember/December 31,

2016 2015 2015 2014 2013Catatan/ (Enam bulan/ (Enam bulan/ (Satu tahun/ (Satu tahun/ (Satu tahun/

Notes Six months) Six months) One year) One year) One year)

PENJUALAN NETO 2d,20 NET SALESKawasan industri 200.181.304 186.395.539 381.810.606 383.466.627 357.613.284 Industrial estatesPT Perusahaan Listrik PT Perusahaan Listrik

Negara (Persero) (PLN) 27a 74.486.872 84.184.727 166.084.433 161.241.564 144.163.925 Negara (Persero) (PLN)

Jumlah Penjualan Neto 274.668.176 270.580.266 547.895.039 544.708.191 501.777.209 Total Net Sales

BEBAN POKOK PENJUALAN 2d,21 (181.603.742) (180.552.980) (362.448.544) (359.245.460) (354.081.077) COST OF SALES

LABA KOTOR 93.064.434 90.027.286 185.446.495 185.462.731 147.696.132 GROSS PROFIT

Beban umum dan General and administrativeadministrasi 2d,22 (21.543.904) (18.084.342) (37.998.839) (38.084.019) (29.268.563) expenses

Beban penjualan 2d,23 (2.202.425) (1.948.128) (4.225.093) (4.300.111) (4.281.668) Selling expensesPendapatan lain-lain 2d,24 274.834 455.723 475.848 1.049.006 956.316 Other incomeBeban lain-lain 2d,25 (1.022.591) (7.639.173) (12.126.908) (6.957.543) (24.624.831) Other expenses

LABA USAHA SEBELUM PROFIT FROM OPERATIONSBEBAN PAJAK PENGHASILAN BEFORE INCOME TAX ANDDAN BEBAN PENDANAAN 68.570.348 62.811.366 131.571.503 137.170.064 90.477.386 FINANCE COSTS

Beban pendanaan 2d,26 (8.433.869) (9.823.362) (24.841.619) (29.496.669) (33.831.769) Finance costsPendapatan bunga 532.565 1.261.731 1.901.384 5.790.029 7.388.814 Interest incomePajak final atas Final tax on

pendapatan bunga (106.513) (252.346) (380.277) (1.158.006) (1.477.763) interest income

LABA SEBELUM PROFIT BEFOREBEBAN PAJAK 60.562.531 53.997.389 108.250.991 112.305.418 62.556.668 INCOME TAX

MANFAAT (BEBAN) INCOME TAX BENEFITPAJAK PENGHASILAN (EXPENSE)Kini (17.523.268) (9.864.984) (24.834.715) (29.583.225) (4.867.541) CurrentTangguhan 71.124.150 (2.049.983) (3.405.652) 1.687.599 (14.520.812) DeferredPajak final pada revaluasi Final tax on revaluation of

aset tetap (7.646.782) - - - - property, plant and equipment

MANFAAT (BEBAN) INCOME TAX BENEFITPAJAK PENGHASILAN 11c 45.954.100 (11.914.967) (28.240.367) (27.895.626) (19.388.353) (EXPENSE)

LABA PERIODE BERJALAN 106.516.631 42.082.422 80.010.624 84.409.792 43.168.315 PROFIT FOR THE PERIOD

PENGHASILAN (RUGI) OTHER COMPREHENSIVEKOMPREHENSIF LAIN INCOME (LOSS)

Pos yang akan direklasifikasi Item that may be reclassifiedke laba rugi: to profit or loss:

Changes in fair value ofPerubahan nilai wajar available-for-sale

investasi tersedia untuk dijual 7.275 14.789 14.789 (620.091) 417.812 investmentsPajak penghasilan terkait Income tax relating to

perubahan nilai wajar changes in fair value ofinvestasi tersedia untuk dijual 11f (1.819) (3.697) (3.697) 155.023 (122.177) available-for-sale investments

7 5.456 11.092 11.092 (465.068) 295.635

F-13

The original consolidated financial statements included hereinare in the Indonesian language.

Catatan atas laporan keuangan konsolidasian terlampirmerupakan bagian integral dari laporan keuangan

konsolidasian ini.

The accompanying notes form an integral part of theseconsolidated financial statements.

4

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

LAPORAN LABA RUGIDAN PENGHASILAN KOMPREHENSIF LAIN

KONSOLIDASIAN (lanjutan)Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016dan 2015 (Tidak Diaudit) dan Tahun yang

Berakhir pada Tanggal-tanggal31 Desember 2015, 2014 dan 2013

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OFPROFIT OR LOSS AND

OTHER COMPREHENSIVE INCOME (continued)For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited)and the Years Ended

December 31, 2015, 2014 and 2013 (Expressed in United States Dollar,

Unless Otherwise Stated)

30 Juni/June 30, 31 Desember/December 31,

2016 2015 2015 2014 2013Catatan/ (Enam bulan/ (Enam bulan/ (Satu tahun/ (Satu tahun/ (Satu tahun/

Notes Six months) Six months) One year) One year) One year)

Pos yang tidak direklasifikasi Item that will not beke laba rugi: reclassified to profit or loss:

Pengukuran kembali keuntungan Remeasurement gain (loss) on(kerugian) atas estimasi estimated liability forliabilitas imbalan kerja 14c (320.784) 915.240 (983.645) (2.711.097) 512.969 employee benefits

Pajak penghasilan terkaitpengukuran kembali Income tax relating to keuntungan (kerugian) remeasurement gain (loss)atas estimasi liabilitas on estimated liability forimbalan kerja 11f 80.196 (228.810) 245.911 677.774 (128.242) employee benefits

(240.588) 686.430 (737.734) (2.033.323) 384.727

JUMLAH PENGHASILAN (RUGI) TOTAL OTHERKOMPREHENSIF LAIN PERIODE COMPREHENSIVE INCOMEBERJALAN, SETELAH DIKURANGI (LOSS) FOR THE PERIOD,BEBAN PAJAK PENGHASILAN (235.132) 697.522 (726.642) (2.498.391) 680.362 NET OF INCOME TAX

JUMLAH PENGHASILANKOMPREHENSIF PADA TOTAL COMPREHENSIVEPERIODE BERJALAN 106.281.499 42.779.944 79.283.982 81.911.401 43.848.677 INCOME FOR THE PERIOD

LABA PER SAHAM DASAR 2n,28 0,0073 0,0029 0,0055 0,0058 0,0029 BASIC EARNINGS PER SHARE

F-14

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F-17

The original consolidated financial statements included hereinare in the Indonesian language.

Catatan atas laporan keuangan konsolidasian terlampirmerupakan bagian integral dari laporan keuangan

konsolidasian ini.

The accompanying notes form an integral part of these consolidatedfinancial statements.

8

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

LAPORAN ARUS KAS KONSOLIDASIANUntuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016dan 2015 (Tidak Diaudit) dan Tahun yang

Berakhir pada Tanggal-tanggal31 Desember 2015, 2014 dan 2013

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWSFor the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited)and the Years Ended

December 31, 2015, 2014 and 2013 (Expressed in United States Dollar,

Unless Otherwise Stated)

30 Juni/June 30, 31 Desember/December 31,

2016 2015 2015 2014 2013Catatan/ (Enam bulan/ (Enam bulan/ (Satu tahun/ (Satu tahun/ (Satu tahun/

Notes Six months) Six months) One year) One year) One year)

ARUS KAS DARI CASH FLOWS FROMAKTIVITAS OPERASI OPERATING ACTIVITIESPenerimaan kas dari pelanggan 280.667.388 270.315.324 541.669.774 547.770.740 499.647.992 Cash receipts from customersPembayaran kas kepada Cash paid to suppliers and

pemasok dan karyawan (185.980.824) (181.400.436) (331.154.784) (339.163.850) (374.714.863) employees

Kas yang dihasilkan darikegiatan usaha 94.686.564 88.914.888 210.514.990 208.606.890 124.933.129 Cash generated from operations

Pembayaran beban pendanaan (7.775.811) (9.211.336) (23.594.970) (28.337.209) (33.275.643) Payments of finance costsPembayaran pajak penghasilan (23.045.928) (12.769.454) (39.886.536) (17.839.101) (23.136.721) Income tax paid

Kas Neto Diperoleh dari Net Cash Provided byAktivitas Operasi 63.864.825 66.934.098 147.033.484 162.430.580 68.520.765 Operating Activities

ARUS KAS DARI CASH FLOWS FROMAKTIVITAS INVESTASI INVESTING ACTIVITIES

Advances for purchase ofUang muka untuk property, plant and

pembelian aset tetap (7.114.492) (3.473.740) (3.488.425) (2.493.587) (23.216.451) equipmentAcquisitions of property,

Akuisisi aset tetap (62.288.492) (95.655.738) (173.387.281) (162.539.864) (142.614.936) plant and equipmentAkuisisi peralatan listrik Acquisitions of electrical

yang tidak digunakan equipment not useddalam operasi (19.916) (528.978) (561.462) (416.755) (584.418) in operations

Penerimaan dari penjualan Proceeds from sale ofperalatan 77.835 121.788 213.177 116.562 116.982 equipment

Pembelian investasi (305.437) (934.856) (934.856) (14.491.281) (6.337.171) Purchase of investmentsPenerimaan dari penjualan Proceeds from sale of

investasi - 2.907.682 2.907.682 26.073.828 5.479.140 investments

Kas Neto Digunakan untuk Net Cash Used inAktivitas Investasi (69.650.502) (97.563.842) (175.251.165) (153.751.097) (167.156.854) Investing Activities

ARUS KAS DARI CASH FLOWS FROMAKTIVITAS PENDANAAN FINANCING ACTIVITIESPenerimaan dari penerbitan Proceeds from issuance

saham 17,18 172.964.909 - - - - of sharesPembayaran dividen tunai 17 - - (5.000.000) (42.083.190) (35.999.817) Payments of cash dividendsPembayaran utang wesel - - - - (19.434.000) Payments of notes payable

Kas Neto Diperoleh dari Net Cash Provided by(Digunakan untuk) (Used in) FinancingAktivitas Pendanaan 172.964.909 - (5.000.000) (42.083.190) (55.433.817) Activities

NET INCREASEKENAIKAN (PENURUNAN) (DECREASE) IN CASH ANDNETO KAS DAN SETARA KAS 167.179.232 (30.629.744) (33.217.681) (33.403.707) (154.069.906) CASH EQUIVALENTS

PENGARUH PERUBAHAN EFFECT OF EXCHANGEKURS MATA UANG ASING RATE CHANGES ON CASHKAS DAN SETARA KAS 1.476.653 (3.976.943) (4.442.838) (2.052.647) (19.588.415) AND CASH EQUIVALENTS

CASH AND CASHKAS DAN SETARA KAS EQUIVALENTSAWAL PERIODE 57.626.349 95.286.868 95.286.868 130.743.222 304.401.543 AT BEGINNING OF PERIOD

CASH AND CASHKAS DAN SETARA KAS EQUIVALENTS ATAKHIR PERIODE 3 226.282.234 60.680.181 57.626.349 95.286.868 130.743.222 END OF PERIOD

F-18

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhirpada Tanggal-tanggal 30 Juni 2016 dan 2015(Tidak Diaudit) dan Tanggal 31 Desember 2015,2014 dan 2013 dan Untuk Tahun yang Berakhir

pada Tanggal-tanggal Tersebut(Disajikan dalam Dolar Amerika Serikat,

Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

9

1. UMUM 1. GENERAL

a. Pendirian Perusahaan a. The Company’s Establishment

PT Cikarang Listrindo Tbk (“Perusahaan”)didirikan dalam kerangka Undang-undangPenanaman Modal dalam Negeri No. 6 Tahun1968 yang telah diubah dengan Undang-undang No. 12 Tahun 1970, berdasarkan AktaNotaris No. 187 oleh Lukman Kirana, S.H.,tanggal 28 Juli 1990. Akta pendirian tersebutdisetujui oleh Kementerian KehakimanRepublik Indonesia dalam surat keputusannyaNo. C2-5479.HT.01.01.TH.91 tanggal5 Oktober 1991 dan diumumkan dalamTambahan No. 5163 dari Berita Negara No. 88tanggal 2 November 1991. Anggaran DasarPerusahaan telah diubah dari waktu ke waktu,terakhir dengan Akta Notaris No. 23 olehEdward Suharjo Wiryomartani, S.H., M.Kn.tanggal 14 Juni 2016 mengenai peningkatanmodal ditempatkan dan disetor penuhPerusahaan. Perubahan ini telah disetujui olehKementerian Hukum dan Hak Asasi Manusiadalam surat keputusannya No. AHU-0079627.AH.01.11.Tahun 2016 tanggal28 Juni 2016.

PT Cikarang Listrindo Tbk (the “Company”)was established within the framework of theDomestic Investment Law No. 6 Year 1968which was amended by Law No. 12 Year1970, based on Notarial Deed No. 187 ofLukman Kirana, S.H., dated July 28, 1990.The deed of establishment was approved bythe Ministry of Justice in its decision letterNo. C2-5479.HT.01.01.TH.91 dated October 5,1991 and published in Supplement No. 5163of State Gazette No. 88 dated November 2,1991. The Company’s Articles of Associationhas been amended from time to time, thelatest by Notarial Deed No. 23 of EdwardSuharjo Wiryomartani, S.H., M.Kn. datedJune 14, 2016 regarding the increase in theCompany’s issued and fully paid capital stock.The amendment was approved by the Ministryof Law and Human Rights in its decision letterNo. AHU-0079627.AH.01.11.Tahun 2016dated June 28, 2016.

Perusahaan memperoleh izinNo. 29/MMP/KKI-III/1992 tanggal 17 Maret1992, dari Menteri Muda Perindustrian untuksecara eksklusif memasok listrik ke lima (5)kawasan industri di wilayah Cikarang selamasepuluh (10) tahun sampai Desember 2003.Izin ini diperbaharui oleh Menteri Energi danSumber Daya Mineral melalui suratkeputusannya No. 3887/31/MEM.L/2003tanggal 9 Desember 2003. Berdasarkan suratkeputusan tersebut, Perusahaan akan secaraeksklusif memasok listrik ke lima kawasanindustri tersebut di wilayah Cikarang sampaidengan waktu sistem pasokan tenaga listrikJawa-Madura-Bali ditetapkan sebagai wilayahyang kompetitif. Menteri Energi dan SumberDaya Mineral melalui surat keputusannyaNo. 5045-12/43/600.3/2006 memberikankepada Perusahaan “Izin Usaha Listrik untukMemasok Listrik bagi Publik” untuk memasoklistrik ke lima kawasan industri di wilayahCikarang untuk periode 30 tahun sejak11 Desember 2006.

The Company obtained licenseNo. 29/MMP/KKI-III/1992 dated March 17,1992, from the Junior Minister of Industry toexclusively supply power to five (5) industrialestates in the Cikarang area for ten (10) yearsuntil December 2003. This license wasrenewed by the Minister of Energy and MineralResources through his decision letterNo. 3887/31/MEM.L/2003 dated December 9,2003. Based on such decision letter,the Company shall exclusively supply power tosuch five industrial estates in the Cikarangarea until such time that the Java-Madura-Balielectric power supply system is determined asa competitive area. The Minister of Energy andMineral Resources through his decision letterNo. 5045-12/43/600.3/2006 granted theCompany an “Electricity Undertaking Licenseto Supply Electricity to the Public” to supplypower to the five industrial estates in theCikarang area for a period of 30 years fromDecember 11, 2006.

F-19

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

10

1. UMUM (lanjutan) 1. GENERAL (continued)

a. Pendirian Perusahaan (lanjutan) a. The Company’s Establishment (continued)

Sesuai dengan Pasal 3 Anggaran DasarPerusahaan, Perusahaan terutama bergerakdalam pembangkit tenaga listrik, pemasaran,pendistribusian tenaga listrik dan agen.Perusahaan berdomisili di Jakarta dengankantor utamanya terletak di World TradeCentre I Lt. 17, Jl. Jenderal Sudirman.Pembangkit listriknya terletak di Cikarang,Bekasi. Perusahaan memulai operasikomersialnya pada bulan November 1993.

As stated in Article 3 of the Company’s Articlesof Association, the Company is primarilyengaged in electric power generation,marketing, electricity distribution and agency.The Company is domiciled in Jakarta with itsprincipal office located in World Trade Centre I 17th Floor, Jl. Jenderal Sudirman. Its powerplant is located in Cikarang, Bekasi. TheCompany started commercial operations inNovember 1993.

b. Penawaran Umum Efek Saham Perusahaan b. The Company’s Share Public Offering

Saham Perusahaan ditawarkan perdanakepada masyarakat dan dicatatkan di BursaEfek Indonesia pada tanggal 14 Juni 2016.Penawaran perdana saham Perusahaansejumlah 1.608.716.000 saham dengan nilainominal Rp200 per saham, disetujui untukdicatatkan pada tanggal 7 Juni 2016 olehOtoritas Jasa Keuangan (OJK) dengansuratnya No. S-274/D.04/2016.

The Company’s shares of stock were initiallyoffered to the public and listed onthe Indonesia Stock Exchange on June 14,2016. The Company’s initial public offering of1,608,716,000 shares with a par value ofRp200 per share, was approved forlisting on June 7, 2016 by the FinancialServices Authority (OJK) in its letterNo. S-274/D.04/2016.

Pada tanggal 30 Juni 2016, seluruh sahamPerusahaan sejumlah 16.087.156.000 tercatatdi Bursa Efek Indonesia.

As of June 30, 2016, all of the Company’s16,087,156,000 shares are listed on theIndonesia Stock Exchange.

c. Struktur Entitas Anak c. Structure of the Subsidiaries

Pada tanggal 11 Juni 2007, Listrindo CapitalB.V., entitas anak yang dimiliki secara penuholeh Perusahaan, didirikan di Amsterdam,Belanda dan terdaftar pertama kali dalamdaftar perdagangan pada tanggal19 Juni 2007. Pada tanggal 12 Juni 2007,Signal Capital B.V., entitas anak yang dimilikisecara penuh oleh Listrindo Capital B.V.,didirikan di Amsterdam, Belanda dan pertamakali terdaftar dalam daftar perdagangan padatanggal 19 Juni 2007. Entitas anak memulaioperasi komersialnya pada Januari 2010.

On June 11, 2007, Listrindo Capital B.V.,a wholly-owned subsidiary of the Company,was incorporated in Amsterdam,The Netherlands and first registered in thetrade register on June 19, 2007. On June 12,2007, Signal Capital B.V., a wholly-ownedsubsidiary of Listrindo Capital B.V., wasincorporated in Amsterdam, The Netherlandsand first registered in the trade register onJune 19, 2007. The subsidiaries startedcommercial operations in January 2010.

F-20

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

11

1. UMUM (lanjutan) 1. GENERAL (continued)

c. Struktur Entitas Anak (lanjutan) c. Structure of the Subsidiaries (continued)

Listrindo Capital B.V. didirikan untuk, antaralain:• Mengelola, membiayai, melakukan jasa

manajemen dengan memberikan sarandan jasa kepada perusahaan lain;

• Meminjam dan meminjamkan uang,mengeluarkan surat utang, debenture,dan efek lainnya;

• Memberikan jaminan untuk utang dantanggung jawab lainnya dari Perusahaandan pihak ketiga;

• Memperoleh, mengelola, menjamin danmengalihkan properti yang terdaftar;

• Mengelola dan melakukan usahasehubungan dengan hak merek, paten,model, antara lain, trademark dan hakatas kekayaan intelektual dan industrialproperty lainnya;

• Melakukan usaha sehubungan denganmata uang, efek, dan aset secara umum;

• Melakukan segala jenis aktivitas industri,keuangan dan komersial;

• Melakukan segala jenis usaha yangsehubungan dengan hal-hal di atas,dalam arti yang seluas-luasnya.

Listrindo Capital B.V. was established to,among others:• Manage, finance, perform management

services by providing advice and servicesto other companies;

• Borrow and lend money, issue bonds,debentures, and other securities;

• Provide a guarantee for the debts andother responsibilities of the Company andthird parties;

• Acquire, manage, ensure and alienateregistered property;

• Manage and conduct business withrespect to trademarks, patents, models,among others, trademark and intellectualproperty rights and other industrialproperty;

• Conduct business with respect tocurrencies, securities, and assets ingeneral;

• Undertake all types of industrial activity,financial and commercial;

• Engage in any type of business in relationto the matters above, in the broadestsense.

Signal Capital B.V. didirikan untuk, antara lain:

• Mengelola, membiayai, melakukan jasamanajemen dengan memberikan sarandan jasa kepada perusahaan lain;

• Meminjam dan meminjamkan uang,mengeluarkan surat utang, debenture,dan efek lainnya;

• Memberikan jaminan untuk utang dantanggung jawab lainnya dari Perusahaandan pihak ketiga;

• Memperoleh, mengelola, menjamin danmengalihkan properti yang terdaftar;

• Mengelola dan melakukan usahasehubungan dengan hak merek, paten,model, antara lain, trademark dan hakatas kekayaan intelektual dan industrialproperty lainnya;

Signal Capital B.V. was established to, amongothers:• Manage, finance, perform management

services by providing advice and servicesto other companies;

• Borrow and lend money, issue bonds,debentures, and other securities;

• Provide a guarantee for the debts andother responsibilities of the Company andthird parties;

• Acquire, manage, ensure and alienateregistered property;

• Manage and conduct business withrespect to trademarks, patents, models,among others, trademark and intellectualproperty rights and other industrialproperty;

F-21

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

12

1. UMUM (lanjutan) 1. GENERAL (continued)

c. Struktur Entitas Anak (lanjutan) c. Structure of the Subsidiaries (continued)

• Melakukan usaha sehubungan denganmata uang, efek dan aset secara umum;

• Melakukan segala jenis aktivitas industri,keuangan dan komersial;

• Melakukan segala jenis usaha yangsehubungan dengan hal-hal di atas,dalam arti yang seluas-luasnya.

• Conduct business with respect tocurrencies, securities and assets ingeneral;

• Undertake all types of industrial activity,financial and commercial;

• Engage in any type of business in relationto the matters above, in the broadestsense.

Jumlah Aset (Sebelum eliminasi untuk konsolidasi)/Total Assets (Before elimination for consolidation)

PersentaseKepemilikan/ 31 Desember/December 31

Entitas Anak/ Percentage of Domisili/ 30 Juni/June 30,Subsidiaries Ownership Domicile 2016 2015 2014 2013

Listrindo Capital B.V. 100% Belanda/The Netherlands 522.894.916 503.947.587 499.784.446 495.880.825Signal Capital B.V. 100% Belanda/The Netherlands 519.461.162 516.195.705 510.357.154 488.335.125

Pada bulan Februari 2012, Listrindo CapitalB.V., entitas anak yang dimiliki secara penuh,menerbitkan Senior Notes 2019 (Notes 2019)dengan nilai pokok sebesar AS$500.000.000dan terdaftar di Singapore ExchangeSecurities Trading Limited (Catatan 15).

In February 2012, Listrindo Capital B.V., awholly-owned subsidiary, issued Senior Notes2019 (Notes 2019) with principal amount ofUS$500,000,000 and listed at the SingaporeExchange Securities Trading Limited(Note 15).

d. Dewan Komisaris dan Direksi, Komite Auditdan Karyawan

d. Boards of Commissioners and Directors,Audit Committee and Employees

Pada tanggal 30 Juni 2016 dan 31 Desember2015, anggota Dewan Komisaris dan Direksidan Komite Audit adalah sebagai berikut:

As of June 30, 2016 and December 31, 2015,the members of the Company’s Boards ofCommissioners and Directors and AuditCommittee are as follows:

Dewan Komisaris Board of Commissioners

Komisaris Utama Ismail Sofyan President CommissionerWakil Komisaris Utama Sutanto Joso Vice President CommissionerKomisaris Iwan Putra Brasali CommissionerKomisaris Aldo Putra Brasali CommissionerKomisaris Fenza Sofyan CommissionerKomisaris Djeradjat Janto Joso CommissionerKomisaris Independen Drs. Irwan Sofjan Independent CommissionerKomisaris Independen Drs. Yosep Karnadi Independent CommissionerKomisaris Independen Ir. Kiskenda Suriahardja Independent Commissioner

Direksi Board of Directors

Direktur Utama Andrew K. Labbaika President DirectorWakil Direktur Utama P’ng Ewe Chai Vice President DirectorDirektur Matius Sugiaman DirectorDirektur Independen Christanto Pranata Independent DirectorDirektur Independen Richard N. Flynn Independent Director

F-22

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

13

1. UMUM (lanjutan) 1. GENERAL (continued)

d. Dewan Komisaris dan Direksi, Komite Auditdan Karyawan (lanjutan)

d. Boards of Commissioners and Directors,Audit Committee and Employees(continued)

Komite Audit Audit Committee

Ketua Drs. Yosep Karnadi HeadAnggota Freddy Soetanto MemberAnggota Wiyandi The Member

Pada tanggal 31 Desember 2014 dan 2013,anggota Dewan Komisaris dan Direksi adalahsebagai berikut:

As of December 31, 2014 and 2013, themembers of the Company’s Boards ofCommissioners and Directors are as follows:

Dewan Komisaris Board of Commissioners

Komisaris Utama Ismail Sofyan President CommissionerKomisaris Iwan Putra Brasali CommissionerKomisaris Aldo Putra Brasali CommissionerKomisaris Fenza Sofyan CommissionerKomisaris Djeradjat Janto Joso Commissioner

Direksi Board of Directors

Direktur Utama Sutanto Joso President DirectorDirektur Andrew K. Labbaika DirectorDirektur P’ng Ewe Chai Director

Pada tanggal 30 Juni 2016 dan tanggal31 Desember 2015, 2014 dan 2013,Perusahaan dan entitas anak memiliki totalmasing-masing 692, 675, 559 dan 486karyawan tetap (tidak diaudit).

As of June 30, 2016 and December 31, 2015,2014 and 2013, the Company and subsidiarieshave a total of 692, 675, 559 and 486permanent employees, respectively(unaudited).

2. IKHTISAR KEBIJAKAN AKUNTANSI YANGSIGNIFIKAN

2. SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES

Kebijakan akuntansi signifikan berikut iniditerapkan secara konsisten dalam penyusunanlaporan keuangan konsolidasian kecuali untukpenerapan dalam periode 2016 atas beberapaPernyataan Standar Akuntansi Keuangan (PSAK)yang diamandemen dan diterbitkan, secaraprospektif atau retrospektif, seperti yang dibahasdalam paragraf-paragraf berikut:

The following significant accounting policies wereapplied consistently in the preparation of theconsolidated financial statements except for theadoption in 2016 of several amended and issuedStatements of Financial Accounting Standards(SFAS), prospectively or retrospectively, asdiscussed in the succeeding paragraphs:

F-23

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

14

2. IKHTISAR KEBIJAKAN AKUNTANSI YANGSIGNIFIKAN (lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES (continued)

a. Dasar Penyajian Laporan KeuanganKonsolidasian

a. Basis of Presentation of ConsolidatedFinancial Statements

Laporan keuangan konsolidasian telah disusunsesuai dengan Standar Akuntansi Keuangan diIndonesia (“SAK”), yang mencakupPernyataan dan Interpretasi yang diterbitkanoleh Dewan Standar Akuntansi KeuanganIkatan Akuntan Indonesia (“DSAK”) danPeraturan Nomor VIII.G.7 tentang PedomanPenyajian dan Pengungkapan LaporanKeuangan yang diterbitkan oleh Otoritas JasaKeuangan (OJK).

The consolidated financial statements havebeen prepared in accordance with IndonesianFinancial Accounting Standards ("SAK“),which comprise the Statements andInterpretations issued by the FinancialAccounting Standards Board of the IndonesianInstitute of Accountants (“DSAK”) and theRegulation Number VIII.G.7 on the Guidelineson Financial Statement Presentation andDisclosures issued by the Financial ServicesAuthority (OJK).

Laporan keuangan konsolidasian telah disusunsesuai dengan Pernyataan Standar AkuntansiKeuangan (PSAK) No. 1 (Revisi 2013),"Penyajian Laporan Keuangan". PSAK No. 1(Revisi 2013), menetapkan dasar bagipenyajian laporan keuangan bertujuan umumagar dapat dibandingkan baik dengan laporankeuangan entitas periode sebelumnya maupundengan laporan keuangan entitas lain.

The consolidated financial statements havebeen prepared in accordance with Statementof Financial Accounting Standards (SFAS)No. 1 (Revised 2013), “Presentation ofFinancial Statements”. SFAS No. 1 (Revised2013), prescribed the basis for presentation ofgeneral purpose financial statements to ensurecomparability both with the entity’s financialstatements of previous periods and with thefinancial statements of other entities.

Laporan keuangan konsolidasian, yangdisajikan dalam Dolar Amerika Serikat (DolarAS) (mata uang pelaporan dan fungsional),telah disusun berdasarkan konsep akrual danmenggunakan konsep biaya historis kecualidiungkapkan lain dalam catatan terkait di sini.

The consolidated financial statements,presented in United States Dollar (US Dollar)(reporting and functional currency), have beenprepared on accrual basis and using thehistorical cost basis except as otherwisedisclosed in the related notes herein.

Laporan arus kas konsolidasian menyajikanpenerimaan dan pengeluaran kas dan setarakas yang diklasifikasikan ke dalam aktivitasoperasi, investasi dan pendanaan. Arus kasdari aktivitas operasi disajikan denganmenggunakan metode langsung.

The consolidated statements of cash flowspresent receipts and disbursements of cashand cash equivalents classified into operating,investing and financing activities. The cashflows from operating activities are presentedusing the direct method.

b. Prinsip Konsolidasian b. Principles of Consolidation

Perusahaan dan Entitas Anak menerapkanPSAK No. 4 (Amandemen 2015), “LaporanKeuangan Tersendiri”, tentang Metode Ekuitasdalam Laporan Keuangan Tersendiri, berlakuefektif 1 Januari 2016.

The Company and its Subsidiaries adoptedSFAS No. 4 (2015 Amendments), “SeparateFinancial Statements”, on Equity Method inSeparate Financial Statements, effectiveJanuary 1, 2016.

F-24

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

15

2. IKHTISAR KEBIJAKAN AKUNTANSI YANGSIGNIFIKAN (lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES (continued)

b. Prinsip Konsolidasian (lanjutan) b. Principles of Consolidation (continued)

Perusahaan dan Entitas Anak menerapkanamandemen ini, diantara lain,memperkenankan entitas-entitas untukpenggunaan metode ekuitas untuk mencatatinvestasi pada entitas anak, ventura bersamadan entitas asosiasi dalam laporan keuanganmereka tersendiri.

The amendments, among others, allow entitiesto use the equity method to account forinvestments in subsidiaries, joint ventures andassociates in their separate financialstatements.

Penerapan PSAK No. 4 (Amandemen 2015)tidak memiliki pengaruh signifikan terhadaplaporan keuangan konsolidasian.

The adoption of SFAS No. 4 (2015Amendments) has no significant impact on theconsolidated financial statements.

Laporan keuangan konsolidasian meliputiakun-akun Perusahaan dan Entitas Anak(Listrindo Capital B.V. dan Signal Capital B.V.)yang 100% sahamnya dimiliki baik secaralangsung maupun tidak langsung. Semua akundan transaksi antar perusahaan yangsignifikan telah dieliminasi.

The consolidated financial statements includethe accounts of the Company and Subsidiaries(Listrindo Capital B.V. and Signal Capital B.V.)which are 100%-owned either directly orindirectly. All significant intercompanyaccounts and transactions have beeneliminated.

Sebuah entitas anak secara penuhdikonsolidasikan sejak tanggal akuisisi, yaitutanggal dimana Perusahaan memperolehpengendalian, dan berlanjut untukdikonsolidasikan sampai dengan tanggalpengendalian tersebut berhenti. Pengendaliandianggap ada ketika Perusahaan memiliki,secara langsung atau tidak langsung melaluientitas anak, lebih dari setengah hak suarasuatu entitas.

A subsidiary is fully consolidated from the dateof acquisition, being the date on which theCompany obtained control, and continues tobe consolidated until the date such controlceases. Control is presumed to exist if theCompany owns, directly or indirectly throughsubsidiaries, more than half of the votingpower of an entity.

Semua akun dan transaksi antar perusahaanyang material, termasuk keuntungan ataukerugian yang belum direalisasi, jika ada,dieliminasi untuk mencerminkan posisikeuangan dan kinerja keuangan konsolidasianPerusahaan dan Entitas Anak sebagai satukesatuan usaha.

All material intercompany accounts andtransactions, including unrealized gains orlosses, if any, are eliminated to reflect theconsolidated financial position and financialperformance of the Company and Subsidiariesas one business entity.

c. Transaksi dengan Pihak-pihak Berelasi c. Transactions with Related Parties

Perusahaan dan Entitas Anak melakukantransaksi dengan pihak-pihak berelasisebagaimana didefinisikan dalam PSAK No. 7(Revisi 2010), "Pengungkapan Pihak-pihakBerelasi ". Transaksi dan saldo yang signifikandiungkapkan dalam Catatan 19.

The Company and Subsidiaries havetransactions with related parties as definedunder SFAS No. 7 (Revised 2010), “RelatedParty Disclosures”. The significant transactionsand balances are disclosed in Note 19.

F-25

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

16

2. IKHTISAR KEBIJAKAN AKUNTANSI YANGSIGNIFIKAN (lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES (continued)

c. Transaksi dengan Pihak-pihak Berelasi(lanjutan)

c. Transactions with Related Parties(continued)

Transaksi dilakukan berdasarkan persyaratanyang disetujui oleh para pihak. Persyaratantersebut mungkin tidak sama denganpersyaratan transaksi antara pihak-pihak yangtidak berelasi.

The transactions are made based on termsagreed by the parties. Such terms may not bethe same as those of the transactions betweenunrelated parties.

d. Pengakuan Pendapatan dan Beban d. Revenue and Expense Recognition

Pendapatan dari penjualan diakui pada saatpenyerahan listrik. Pendapatan daripenyambungan diakui pada saat jasadiserahkan ke pelanggan. Beban diakui padasaat terjadinya (basis akrual).

Revenue from sales is recognized upondelivery of electricity. Revenue fromconnection charges is recognized at the timethe related services are rendered tocustomers. Expenses are recognized whenincurred (accrual basis).

e. Kas dan Setara Kas e. Cash and Cash Equivalents

Kas dan setara kas terdiri dari kas dan bank,dan deposito berjangka jangka pendek denganwaktu jatuh tempo tiga bulan atau kurang danyang tidak digunakan sebagai jaminan untukpinjaman atau tidak dibatasi penggunaannya.

Cash and cash equivalents consist of cash onhand and in banks, and short-term timedeposits with original maturities of threemonths or less and which are not pledged ascollateral for loans or not restricted as to use.

f. Instrumen Keuangan f. Financial Instruments

Aset Keuangan Financial Assets

Aset keuangan Perusahaan dan Entitas Anakmeliputi kas dan setara kas, rekening bankyang dibatasi penggunaannya, piutang usahadan piutang lainnya, pinjaman karyawan dandeposito jaminan yang diklasifikasikan sebagaipinjaman dan piutang, dan investasi yangtercatat yang diklasifikasikan sebagai asetyang dimiliki untuk dijual. Aset keuanganawalnya diakui pada nilai wajar.

The Company and Subsidiaries’ financialassets include cash and cash equivalents,restricted cash in banks, trade and otherreceivables, loans to employees and securitydeposits, which are classified as loans andreceivables, and qouted investments which areclassified as available-for-sale assets.Financial asets are initially recognized at fairvalue.

Pinjaman dan piutang Loans and receivablesPinjaman dan piutang adalah aset keuangannon-derivatif dengan pembayaran tetap atautelah ditentukan yang tidak tercatat di pasaraktif. Setelah pengukuran awal, aset keuangantersebut selanjutnya diukur pada biayaperolehan yang diamortisasi denganmenggunakan metode suku bunga efektif,dikurangi penurunan nilai, jika ada. Kerugianyang timbul dari penurunan nilai diakui dalamlaporan laba rugi dan penghasilankomprehensif lain konsolidasian.

Loans and receivables are non-derivativefinancial assets with fixed or determinablepayments that are not quoted in an activemarket. After initial measurement, suchfinancial assets are subsequently measured atamortized cost using the effective interestmethod, less impairment, if any. The lossesarising from impairment are recognized in theconsolidated statements of profit or loss andother comprehensive income.

F-26

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

17

2. IKHTISAR KEBIJAKAN AKUNTANSI YANGSIGNIFIKAN (lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES (continued)

f. Instrumen Keuangan (lanjutan) f. Financial Instruments (continued)

Aset Keuangan (lanjutan) Financial Assets (continued)

Aset keuangan tersedia untuk dijual (Available-for-sale (AFS))

Available-for-sale (AFS) financial assets

Aset keuangan AFS adalah aset keuangannon-derivatif yang ditetapkan sebagai tersediauntuk dijual atau yang tidak diklasifikasikansebagai aset keuangan pada nilai wajarmelalui laporan laba rugi, pinjaman danpiutang atau investasi dimiliki hingga jatuhtempo. Setelah pengukuran awal, asetkeuangan AFS diukur dengan nilai wajardengan keuntungan atau kerugian yang belumterealisasi diakui dalam ekuitas pada laporanposisi keuangan konsolidasian sampaiinvestasi tersebut dihentikan pengakuannya.Pada saat itu, keuntungan atau kerugiankumulatif yang sebelumnya diakui dalamekuitas harus direklasifikasi ke laba atau rugisebagai penyesuaian reklasifikasi.

AFS financial assets are non-derivativefinancial assets that are designated asavailable-for-sale or those that are notclassified as financial assets at fair valuethrough profit or loss, loans and receivables orheld-to-maturity investments. After initialmeasurement, AFS financial assets aremeasured at fair value with unrealized gains orlosses recognized in equity in the consolidatedstatements of financial position until theinvestment is derecognized. At that time, thecumulative gain or loss previously recognizedin equity shall be reclassified to profit or lossas a reclassification adjustment.

Penurunan nilai dari aset keuangan Impairment of financial assetsPerusahaan dan Entitas Anak menilai padasetiap tanggal pelaporan apakah terdapat buktiyang obyektif bahwa aset keuangan ataukelompok aset keuangan mengalamipenurunan nilai. Aset keuangan atau kelompokaset keuangan dianggap telah terjadipenurunan jika, dan hanya jika, terdapat buktiyang obyektif mengenai penurunan nilaisebagai akibat dari satu atau lebih peristiwayang terjadi setelah pengakuan awal aset(“peristiwa yang merugikan") dan peristiwayang merugikan tersebut berdampak padaestimasi arus kas masa depan atas asetkeuangan atau kelompok aset keuangan yangdapat diestimasi secara andal.

The Company and Subsidiaries assess ateach reporting date whether there is anyobjective evidence that a financial asset or agroup of financial assets is impaired. Afinancial asset or a group of financial assets isdeemed to be impaired if, and only if, there isobjective evidence of impairment as a result ofone or more events that has occurred after theinitial recognition of the asset (an incurred“loss event”) and that loss event has an impacton the estimated future cash flows of thefinancial asset or the group of financial assetsthat can be reliably estimated.

Piutang usaha disajikan sebesar nilai fakturasli dikurangi cadangan kerugian penurunannilai, jika ada. Estimasi cadangan kerugianpenurunan nilai dibuat bila ada bukti yangobyektif (seperti kemungkinan kebangkrutanatau kesulitan keuangan yang signifikan daridebitur) bahwa Perusahaan tidak akan mampumenagih piutang berdasarkan persyaratanawal tagihan dan ditetapkan melalui provisiyang dibebankan ke pendapatan.

Trade receivables are carried at originalinvoice amount net of allowance forimpairment loss, if any. An estimate ofallowance for impairment loss is made whenthere is objective evidence (such as probabilityof insolvency or significant financial difficultiesof the debtor) that the Company will not beable to collect the receivables under theoriginal terms of the invoice and is establishedthrough provisions charged to income.

F-27

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

18

2. IKHTISAR KEBIJAKAN AKUNTANSI YANGSIGNIFIKAN (lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES (continued)

f. Instrumen Keuangan (lanjutan) f. Financial Instruments (continued)

Aset Keuangan (lanjutan) Financial Assets (continued)

Penurunan nilai dari aset keuangan (lanjutan) Impairment of financial assets (continued)Sisa saldo piutang usaha tersebut dihentikanpengakuannya dan dihapuskan melaluicadangan kerugian penurunan nilai ketikadinilai tidak dapat tertagih. Perusahaan terlebihdahulu menentukan apakah terdapat buktiyang obyektif penurunan nilai secara individualatas aset keuangan yang signifikan secaraindividual, atau secara kolektif untuk asetkeuangan yang tidak signifikan secaraindividual. Jika Perusahaan menentukan tidakterdapat bukti yang obyektif mengenaipenurunan nilai atas aset keuangan yangdinilai secara individual, terlepas dari signifikanatau tidak, termasuk aset dalam kelompok asetkeuangan yang memiliki karakteristik risikokredit yang sejenis dan secara kolektif dinilaiuntuk penurunan nilai.

The outstanding balance of trade receivablesis derecognized and written off against theallowance for impairment loss when assessedto be uncollectible. The Company firstassesses whether objective evidence ofimpairment exists individually for financialassets that are individually significant, orcollectively for financial assets that are notindividually significant. If the Companydetermines that no objective evidence ofimpairment exists for an individually assessedfinancial asset, whether significant or not, itincludes the asset in a group of financialassets with similar credit risk characteristicsand collectively assesses them for impairment.

Jika terdapat bukti yang obyektif bahwakerugian penurunan nilai telah terjadi, jumlahkerugian tersebut diukur sebagai selisih antaranilai tercatat aset dengan nilai kini dari estimasiarus kas masa datang (tidak termasukkerugian kredit di masa mendatang yangbelum terjadi). Nilai kini estimasi arus kasmasa datang didiskonto dengan menggunakansuku bunga efektif awal dari aset keuangantersebut. Aset yang dinilai secara individualuntuk penurunan nilai dan untuk itu kerugianpenurunan nilai, atau terus menjadi, diakuitidak termasuk dalam penilaian penurunannilai secara kolektif.

If there is objective evidence that animpairment loss has been incurred, theamount of the loss is measured as thedifference between the asset’s carryingamount and the present value of estimatedfuture cash flows (excluding future expectedcredit losses that have not yet been incurred).The present value of the estimated future cashflows is discounted at the financial asset’soriginal effective interest rate. Assets that areindividually assessed for impairment and forwhich an impairment loss is, or continues tobe, recognized are not included in a collectiveassessment of impairment.

Liabilitas Keuangan Financial Liabilities

Liabilitas keuangan Perusahaan dan EntitasAnak meliputi utang usaha dan utang lainnya,beban akrual, utang wesel, dan jaminanpelanggan, yang diklasifikasikan sebagaipinjaman dan utang, dan pada awalnya diakuipada nilai wajar, termasuk biaya transaksiyang dapat diatribusikan secara langsung.

The Company and Subsidiaries’ financialliabilities include trade and other payables,accrued expenses, notes payable, andcustomers’ deposits, which are classified asloans and borrowings, and are initiallyrecognized at fair value, inclusive of directlyattributable transaction costs.

F-28

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

19

2. IKHTISAR KEBIJAKAN AKUNTANSI YANGSIGNIFIKAN (lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES (continued)

f. Instrumen Keuangan (lanjutan) f. Financial Instruments (continued)

Liabilitas Keuangan (lanjutan) Financial Liabilities (continued)

Pinjaman dan utang Loans and borrowingsSetelah pengakuan awal, pinjaman dan utangselanjutnya diukur pada biaya perolehan yangdiamortisasi dengan menggunakan metodesuku bunga efektif. Keuntungan dan kerugiandiakui dalam laporan laba rugi danpenghasilan komprehensif lain konsolidasianketika liabilitas dihentikan pengakuannya sertamelalui proses amortisasi metode suku bungaefektif.

After initial recognition, loans and borrowingsare subsequently measured at amortized costusing the effective interest method. Gains andlosses are recognized in the consolidatedstatements of profit or loss and othercomprehensive income when the liabilities arederecognized as well as through the effectiveinterest method amortization process.

Biaya perolehan yang diamortisasi dihitungdengan mempertimbangkan diskon atau premipada saat akuisisi dan tarif atau biaya yangmerupakan bagian integral dari suku bungaefektif. Amortisasi suku bunga efektif termasukdalam beban pendanaan dalam laporan labarugi dan penghasilan komprehensif lainkonsolidasian.

Amortized cost is calculated by taking intoaccount any discount or premium onacquisition and fees or costs that are anintegral part of the effective interest rate. Theeffective interest amortization is included infinance costs in the consolidated statements ofprofit or loss and other comprehensive income.

Penghentian Pengakuan Aset dan LiabilitasKeuangan

Derecognition of Financial Assets andLiabilities

Aset Keuangan Financial AssetsSebuah aset keuangan dihentikanpengakuannya pada saat: (i) hak untukmenerima arus kas dari aset berakhir, atau(ii) Perusahaan dan Entitas Anak mengalihkanhak untuk menerima arus kas dari aset atautelah menanggung kewajiban untuk membayarpenuh arus kas yang diterima tanpapenundaan yang signifikan kepada pihakketiga melalui suatu kesepakatan penyerahan,atau (iii) Perusahaan dan Entitas Anak telahmengalihkan secara substansial seluruh risikodan manfaat atas aset, atau tidak mengalihkanmaupun tidak memiliki secara substansialseluruh risiko dan manfaat atas aset namuntelah mengalihkan pengendalian atas asettersebut.

A financial asset is derecognized when: (i) therights to receive cash flows from the assetexpired, or (ii) the Company and Subsidiariestransferred their rights to receive cash flowsfrom the asset or have assumed an obligationto pay the received cash flows in full withoutmaterial delay to a third party under a “pass-through” arrangement, or (iii) the Companyand Subsidiaries have transferred substantiallyall the risks and rewards of the asset, or haveneither transferred nor retained substantiallyall the risks and rewards of the asset but havetransferred the control of the asset.

F-29

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

20

2. IKHTISAR KEBIJAKAN AKUNTANSI YANGSIGNIFIKAN (lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES (continued)

f. Instrumen Keuangan (lanjutan) f. Financial Instruments (continued)

Penghentian Pengakuan Aset dan LiabilitasKeuangan (lanjutan)

Derecognition of Financial Assets andLiabilities (continued)

Liabilitas Keuangan Financial LiabilitiesSebuah liabilitas keuangan dihentikanpengakuannya pada saat liabilitas tersebutdibayar atau dibatalkan atau kadaluwarsa.

A financial liability is derecognized when theobligation under the liability is discharged orcancelled or expires.

Ketika sebuah liabilitas keuangan yang masihada ditukar dengan liabilitas keuangan lain daripemberi pinjaman yang sama atas persyaratanyang secara substansial berbeda, atau bilapersyaratan dari liabilitas keuangan tersebutsecara substansial dimodifikasi, pertukaranatau modifikasi persyaratan tersebut dicatatsebagai penghentian pengakuan liabilitaskeuangan awal dan pengakuan liabilitaskeuangan baru, dan selisih antara nilai tercatatmasing-masing liabilitas keuangan tersebutdiakui dalam laporan laba rugi danpenghasilan komprehensif lain konsolidasian.

When an existing liability is replaced byanother from the same lender on substantiallydifferent terms, or the terms of an existingliability are substantially modified, such anexchange or modification is treated as aderecognition of the original liability and therecognition of a new liability, and the differencein the respective carrying amounts isrecognized in the consolidated statements ofprofit or loss and other comprehensive income.

Saling Hapus Instrumen Keuangan Offsetting of Financial Instruments

Aset keuangan dan liabilitas keuangan salinghapus dan nilai netonya dilaporkan dalamlaporan posisi keuangan konsolidasian jika,dan hanya jika, terdapat hak yang berkekuatanhukum untuk melakukan saling hapus atasjumlah yang telah diakui tersebut dan berniatuntuk menyelesaikan secara neto atau untukmerealisasikan aset dan menyelesaikanliabilitasnya secara bersamaan.

Financial assets and financial liabilities areoffset and the net amount reported in theconsolidated statement of financial position if,and only if, there is a currently enforceablelegal right to offset the recognized amountsand there is an intention to settle on a netbasis, or to realize the assets and settle theliabilities simultaneously.

g. Persediaan g. Inventories

Persediaan, yang terdiri dari suku cadang danbahan pembantu, dinyatakan sebesar nilaiyang lebih rendah antara biaya perolehan ataunilai realisasi neto. Biaya perolehan ditentukandengan metode rata-rata tertimbang.

Inventories, consisting of spare parts andconsumables, are stated at the lower of cost ornet realizable value. Cost is determined by theweighted-average method.

h. Aset Tetap h. Property, Plant and Equipment

Perusahaan menerapkan PSAK No. 16(Amandemen 2015), “Aset Tetap”, tentangKlarifikasi Metode yang Diterima untukPenyusutan, berlaku efektif 1 Januari 2016.

The Company adopted SFAS No. 16 (2015Amendments), “Property, Plant andEquipment”, on the Clarification of theAccepted Method for Depreciation, effectiveJanuary 1, 2016.

F-30

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

21

2. IKHTISAR KEBIJAKAN AKUNTANSI YANGSIGNIFIKAN (lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES (continued)

h. Aset Tetap (lanjutan) h. Property, Plant and Equipment (continued)

Amandemen ini mengklarifikasi prinsip yangterdapat dalam PSAK No. 16 bahwapendapatan mencerminkan suatu polamanfaat ekonomik yang dihasilkan daripengoperasian usaha (yang mana asettersebut adalah bagiannya) daripada manfaatekonomik dari pemakaian melalui penggunaanaset. Sebagai kesimpulan bahwa penggunaanmetode penyusutan aset tetap yangberdasarkan pada pendapatan tidak dapatdigunakan.

The amendments clarify the principles in SFASNo. 16 that revenue reflects a pattern ofeconomic benefits that are generated fromoperating a business (of which the asset ispart) rather than the economic benefits thatare consumed through use of the asset. As aresult, a revenue-based method cannot beused to depreciate the property, plant andequipment.

Penerepan PSAK No. 16 (Amandemen 2015)tidak memiliki dampak pengaruh signifikanterhadap laporan keuangan konsolidasian.

The adoption of SFAS No. 16 (2015Amendments) has no significant impact on theconsolidated financial statements.

Aset tetap, kecuali hak atas tanah yangdinyatakan sebesar biaya perolehan dan tidakdisusutkan, dinyatakan sebesar biayaperolehan dikurangi akumulasi penyusutan.Penyusutan dihitung dengan menggunakanmetode garis lurus berdasarkan estimasi masamanfaat ekonomis aset sebagai berikut:

Property, plant and equipment, exceptlandrights which are stated at cost and notdepreciated, are stated at cost lessaccumulated depreciation. Depreciation iscomputed using the straight-line method basedon the estimated useful lives of the assets asfollows:

Tahun/Years

Bangunan dan prasarana 10 - 15 Buildings and infrastructureMesin dan peralatan 20 Machinery and equipmentPerabotan, perlengkapan dan peralatan kantor 4 - 5 Furniture, fixtures and office equipmentPeralatan transportasi 4 - 5 Transportation equipment

Mesin dan peralatan dalampemasangan/konstruksi dan hak atas tanahdalam pengembangan dinyatakan sebesarbiaya perolehan. Akumulasi biaya akandireklasifikasi ke akun aset tetap yangbersangkutan pada saat aset tersebut selesaidan telah siap untuk digunakan.

Machinery and equipment underinstallation/construction and landrights underdevelopment are stated at cost. Theaccumulated cost will be reclassified to theappropriate property, plant and equipmentaccounts when the assets are completed andare ready for their intended use.

Biaya perolehan termasuk biaya penggantianbagian dari aset tetap pada saat terjadinyabiaya, jika kriteria pengakuannya terpenuhi.Demikian pula, ketika pemeriksaan utamadilakukan, biaya tersebut diakui ke dalamjumlah tercatat aset tetap sebagai penggantianjika kriteria pengakuan terpenuhi. Semua biayaperbaikan dan perawatan diakui dalam laporanlaba rugi dan penghasilan komprehensif lainkonsolidasian pada saat terjadinya.

Cost includes the cost of replacing part of theproperty, plant and equipment when that costis incurred, if the recognition criteria are met.Likewise, when a major inspection isperformed, its cost is recognized in thecarrying amount of the property, plant andequipment as a replacement if the recognitioncriteria are satisfied. All other repairs andmaintenance costs are recognized in theconsolidated statements of profit or loss andother comprehensive income as incurred.

F-31

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

22

2. IKHTISAR KEBIJAKAN AKUNTANSI YANGSIGNIFIKAN (lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES (continued)

h. Aset Tetap (lanjutan) h. Property, Plant and Equipment (continued)

Ketika aset dihentikan penggunaannya karenatidak ada manfaat ekonomis di masa depandari pemakaian berkelanjutan, atau ketika asettersebut dijual, biaya perolehan dan akumulasipenyusutan yang bersangkutan dihentikanpengakuannya dari akun-akun tersebut.Segala keuntungan dan kerugian yang timbuldari penghentian pengakuan aset (dihitungsebagai selisih hasil penjualan neto dan nilaitercatat aset) tercermin dalam laporan labarugi dan penghasilan komprehensif lainkonsolidasian pada periode aset dihentikanpengakuannya.

When assets are retired because no futureeconomic benefits are expected to arise fromtheir continued use, or when assets aredisposed of, their costs and the relatedaccumulated depreciation are derecognizedfrom the accounts. Any gain or loss arisingfrom derecognition of asset (calculated as thedifference between the net disposal proceedsand the carrying amount of the asset) isreflected in the consolidated statements ofprofit or loss and other comprehensive incomein the period the asset is derecognized.

Nilai residu, umur manfaat dan metodepenyusutan ditelaah dan disesuaikan secaraprospektif, jika diperlukan, pada setiap akhirtahun buku.

The assets’ residual values, useful lives andmethod of depreciation are reviewed andadjusted prospectively, if appropriate, at eachfinancial year end.

i. Biaya Pinjaman i. Borrowing Costs

Biaya pinjaman yang dapat diatribusikanlangsung dengan perolehan, konstruksi, ataupembuatan aset yang membutuhkan waktuyang cukup lama sampai aset tersebut telahsiap untuk digunakan atau dijual dikapitalisasisebagai bagian dari biaya perolehan asettersebut. Semua biaya pinjaman lainnya diakuisebagai beban pada periode terjadinya.

Borrowing costs directly attributable to theacquisition, construction or production of anasset that necessarily takes a substantialperiod of time to get ready for its intended useor sale are capitalized as part of the cost of theasset. All other borrowing costs are expensedin the period which they are incurred.

j. Penurunan Nilai Aset Tetap j. Impairment of Property, Plant andEquipment

Perusahaan mengevaluasi pada setiap tanggalpelaporan apakah terdapat indikasi bahwasuatu aset mungkin mengalami penurunannilai. Jika terdapat indikasi, Perusahaanmengestimasi nilai terpulihkan dari asettersebut.

The Company assesses at each reporting datewhether there is an indication that an assetmay be impaired. If any indication exists, theCompany estimates the asset’s recoverableamount.

Jika nilai tercatat aset melebihi nilaiterpulihkannya, maka aset tersebut mengalamipenurunan nilai dan nilai tercatat asetditurunkan menjadi sebesar nilaiterpulihkannya.

Where the carrying amount of an assetexceeds its recoverable amount, the asset isconsidered impaired and is written down to itsrecoverable amount.

F-32

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

23

2. IKHTISAR KEBIJAKAN AKUNTANSI YANGSIGNIFIKAN (lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES (continued)

j. Penurunan Nilai Aset Tetap (lanjutan) j. Impairment of Property, Plant andEquipment (continued)

Penilaian dilakukan pada akhir setiap periodepelaporan untuk melihat apakah terdapatindikasi bahwa rugi penurunan nilai yang telahdiakui dalam periode sebelumnya mungkintidak ada lagi atau mungkin telah menurun.

An assessment is made at each reporting dateas to whether there is any indication thatpreviously recognized impairment losses mayno longer exist or may have decreased.

Kerugian penurunan nilai yang telah diakuidalam periode sebelumnya dibalik hanya jikaterdapat perubahan asumsi-asumsi yangdigunakan untuk menentukan nilai terpulihkanaset tersebut sejak rugi penurunan nilaiterakhir diakui. Jika rugi penurunan nilaikemudian dibalik, nilai tercatat aset bertambahmenjadi sebesar nilai terpulihkannya. Jumlahpertambahannya tidak dapat melebihi nilaitercatat setelah dikurangi penyusutan,seandainya tidak ada rugi penurunan nilaiyang telah diakui untuk aset tersebut padatahun sebelumnya. Pembalikan tersebut diakuidalam laporan laba rugi dan penghasilankomprehensif lain konsolidasian.

A previously recognized impairment isreversed only if there has been a change inthe assumptions used to determine the asset’srecoverable amount since the last impairmentloss is recognized. Where an impairment lossis subsequently reversed, the carrying amountof the asset is increased to its recoverableamount. That increased amount cannotexceed the carrying amount that would havebeen determined, net of depreciation, had noimpairment loss been recognized for the assetin prior years. Such reversal is recognized inthe consolidated statements of profit or lossand other comprehensive income.

k. Pajak Penghasilan k. Income Tax

Perusahaan dan Entitas Anak menghitungpajak penghasilan kini atas dasar penghasilanmereka untuk tujuan pelaporan keuangan,disesuaikan dengan pos-pos pendapatan danbeban tertentu yang tidak dikenakan pajakatau dikurangkan untuk tujuan pajak.

The Company and Subsidiaries provide forcurrent income tax on the basis of their incomefor financial reporting purposes, adjusted forcertain income and expense items which arenot assessable or deductible for tax purposes.

Perusahaan dan Entitas Anak menerapkanmetode liabilitas untuk menentukan bebanatau manfaat pajak penghasilan tangguhan.Berdasarkan metode liabilitas, aset danliabilitas pajak tangguhan diakui atasperbedaan temporer antara basis keuangandan pajak atas aset dan liabilitas pada setiaptanggal pelaporan.

The Company and Subsidiaries apply theliability method to determine their deferredincome tax expense or benefit. Under theliability method, deferred tax assets andliabilities are recognized for temporarydifferences between the financial and the taxbases of assets and liabilities at each reportingdate.

F-33

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

24

2. IKHTISAR KEBIJAKAN AKUNTANSI YANGSIGNIFIKAN (lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES (continued)

k. Pajak Penghasilan (lanjutan) k. Income Tax (continued)

Metode ini juga mengharuskan pengakuanmanfaat pajak masa mendatang atas rugifiskal yang belum digunakan sepanjangrealisasi manfaat tersebut besarkemungkinannya. Aset dan liabilitas pajaktangguhan diukur pada tarif pajak yangdiharapkan akan digunakan pada periode saataset terealisasi atau liabilitas diselesaikanberdasarkan tarif pajak (dan peraturan pajak)yang berlaku atau yang secara substantifberlaku pada tanggal laporan posisi keuangankonsolidasian.

This method also requires the recognition offuture tax benefits on unused tax losses to theextent that realization of such benefits isprobable. Deferred tax assets and liabilitiesare measured at the tax rates that areexpected to apply to the period when the assetis realized or the liability is settled based onthe tax rates (and tax laws) that have beenenacted or substantively enacted at theconsolidated statement of financial positiondate.

Nilai tercatat aset pajak tangguhan ditelaahpada setiap tanggal laporan posisi keuangankonsolidasian dan diturunkan apabila labafiskal mungkin tidak memadai untukmengkompensasi sebagian atau semuamanfaat aset pajak tangguhan. Aset pajaktangguhan yang tidak diakui sebelumnyadinilai pada setiap tanggal laporan posisikeuangan konsolidasian dan diakui apabilabesar kemungkinan laba kena pajak masamendatang akan memungkinkan aset pajaktangguhan dipulihkan. Perubahan terhadapkewajiban perpajakan dicatat pada saat suratketetapan pajak diterima dan Perusahaan danEntitas Anak telah memiliki kewajiban atassurat ketetapan pajak tersebut atau, jikabanding diajukan oleh Perusahaan dan EntitasAnak, ketika hasil dari keberatan telahditetapkan.

The carrying amount of deferred income taxasset is reviewed at each consolidatedstatement of financial position date andreduced to the extent that it is no longerprobable that sufficient taxable profit will beavailable to allow all or part of the deferredincome tax asset to be utilized. Unrecognizeddeferred income tax assets are reassessed ateach consolidated statement of financialposition date and are recognized to the extentthat it has become probable that future taxableprofit will allow the deferred tax asset to berecovered. Amendments to tax obligations arerecorded when an assessment is received andthe Company and Subsidiaries have incurredan obligation on the assessment or, ifappealed against by the Company andSubsidiaries, when the result of the appeal isdetermined.

Pajak penghasilan terkait dengan pos-posyang diakui langsung dalam ekuitas diakuidalam laporan laba rugi dan penghasilankomprehensif lain konsolidasian.

Income tax relating to items recognizeddirectly in equity is recognized in theconsolidated statements of profit or loss andother comprehensive income.

F-34

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

25

2. IKHTISAR KEBIJAKAN AKUNTANSI YANGSIGNIFIKAN (lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES (continued)

l. Sewa l. Leases

Penentuan apakah suatu perjanjianmerupakan, atau mengandung perjanjian sewadidasarkan atas substansi perjanjian padatanggal awal sewa dan apakah pemenuhanperjanjian tergantung pada penggunaan suatuaset spesifik dan perjanjian tersebutmemberikan suatu hak untuk menggunakanaset tersebut.

The determination of whether an arrangementis, or contains a lease is based on thesubstance of the arrangement at inceptiondate and whether the fulfillment of thearrangement is dependent on the use of aspecific asset and the arrangement conveys aright to use the asset.

Sewa yang mengalihkan secara substansialkepada lessee seluruh risiko dan manfaatyang terkait dengan kepemilikan aset,diklasifikasikan sebagai sewa pembiayaan.Selanjutnya, sewa yang tidak mengalihkansecara substansial seluruh risiko dan manfaatyang terkait dengan kepemilikan aset,diklasifikasikan sebagai sewa operasi.

Leases that transfer substantially to the lesseeall the risks and rewards incidental toownership of the leased item are classified asfinance leases. Moreover, leases which do nottransfer substantially all the risks and rewardsincidental to ownership of the leased item areclassified as operating leases.

Perusahaan sebagai lessee The Company as lessee

Dalam sewa pembiayaan, Perusahaanmengakui aset dan liabilitas dalam laporanposisi keuangan konsolidasian sebesar nilaiwajar aset sewaan atau, jika lebih rendah,sebesar nilai kini dari pembayaran sewaminimum, yang ditetapkan pada awal masasewa. Pembayaran sewa minimum dipisahkanantara bagian yang merupakan bebankeuangan dan bagian yang merupakanpelunasan liabilitas. Beban keuangandialokasikan setiap periode selama masasewa, sehingga menghasilkan tingkat sukubunga periodik yang konstan atas saldoliabilitas.

Under a finance lease, the Companyrecognizes assets and liabilities in theconsolidated statement of financial position atamounts equal to the fair value of the leasedproperty or, if lower, the present value of theminimum lease payments, each determined atthe inception of the lease. Minimum leasepayments are apportioned between thefinance charge and the reduction of theoutstanding liability. The finance charge isallocated to each period during the lease termso as to produce a constant periodic rate ofinterest on the remaining balance of theliability.

Sewa kontinjen dibebankan pada periodeterjadinya. Beban keuangan dicatat dalamlaporan laba rugi. Aset sewaan (disajikansebagai akun “Aset Tetap”) disusutkan selamajangka waktu yang lebih pendek antaraestimasi umur manfaat aset sewaan danperiode masa sewa, jika tidak ada kepastianyang memadai bahwa Perusahaan akanmendapatkan hak kepemilikan pada akhirmasa sewa.

Contingent rents shall be charged asexpenses in the periods in which they areincurred. Finance charges are reflected inprofit or loss. Capitalized leased assets(presented under the account “Property, Plantand Equipment”) are depreciated over theshorter of the estimated useful life of theassets and the lease term, if there is noreasonable certainty that the Company willobtain ownership by the end of the lease term.

Dalam sewa operasi, Perusahaan mengakuipembayaran sewa sebagai beban dengandasar garis lurus (straight-line basis) selamamasa sewa.

Under an operating lease, the Company shallrecognize lease payments as an expense on astraight-line basis over the lease term.

F-35

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

26

2. IKHTISAR KEBIJAKAN AKUNTANSI YANGSIGNIFIKAN (lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES (continued)

l. Sewa (lanjutan) l. Leases (continued)

Perusahaan sebagai lessor The Company as lessor

Dalam sewa operasi, Perusahaan menyajikanaset untuk sewa operasi di laporan posisikeuangan konsolidasian sesuai dengan sifataset tersebut. Biaya awal langsungsehubungan proses negosiasi sewa operasiditambahkan ke nilai tercatat dari aset sewaandan diakui sebagai beban selama masa sewadengan dasar yang sama dengan pendapatansewa. Imbalan sewa kontinjen, apabila ada,diakui sebagai pendapatan pada periodeterjadinya. Pendapatan sewa operasi diakuisebagai pendapatan dengan metode garislurus selama masa sewa.

Under an operating lease, the Companypresents assets subject to operating leases inthe consolidated statement of financial positionaccording to the nature of the asset. Initialdirect costs incurred in negotiating anoperating lease are added to the carryingamount of the leased asset and recognizedover the lease term on the same basis asrental income. Contingent rents, if any, arerecognized as revenue in the periods in whichthey are earned. Lease income from operatingleases is recognized as income on thestraight-line method over the lease term.

Dalam sewa pembiayaan, Perusahaanmengakui aset berupa piutang sewapembiayaan dalam laporan posisi keuangankonsolidasian sebesar jumlah yang samadengan investasi sewa neto yaitu, jumlahagregat dari (i) pembayaran sewa minimumyang akan diterima oleh lessor dalam sewapembiayaan dan (ii) nilai sisa yang tidakdijamin yang menjadi hak lessor,didiskontokan dengan suku bunga implisitdalam sewa.

Under a finance lease, the Companyrecognizes an asset in the form of financelease receivable in the consolidated statementof financial position in the amount of the netinvestment in finance lease which is theaggregate amount of (i) the minimum leasepayments to be received by the lessor underthe finance lease and (ii) unguaranteedresidual value which becomes a right of thelessor, discounted at interest rate implicit in thelease.

Selisih antara investasi sewa pembiayaan netodan investasi sewa pembiayaan bruto(merupakan jumlah agregat dari pembayaransewa minimum yang akan diterima oleh lessordalam sewa pembiayaan dan nilai sisa yangtidak dijamin yang menjadi hak lessor)dialokasikan sebagai pendapatan keuanganselama masa sewa sehingga menghasilkansuatu tingkat pengembalian periodik yangkonstan atas investasi neto.

The difference between the net investment infinance lease and the gross investment infinance lease (representing the aggregateamount of the minimum lease payments to bereceived by the lessor under the finance leaseand unguaranteed residual value whichbecomes the right of the lessor) is allocated asfinance income over the term of the lease soas to produce a constant periodic rate of returnon the net investment.

m. Imbalan Kerja m. Employee Benefits

Perusahaan dan Entitas Anak menerapkanPSAK No. 24 (Amandemen 2015), “ImbalanKerja” tentang Program Imbalan Pasti: IuranPekerja, berlaku efektif 1 Januari 2016. PSAKNo. 24 (Amandemen 2015) meminta entitasuntuk mempertimbangkan iuran dari pekerjaatau pihak ketiga ketika memperhitungkanprogram manfaat pasti.

The Company and Subsidiaries adopted SFASNo. 24 (2015 Amendments), “EmployeeBenefits” on Defined Benefit Plans: EmployeeContributions, effective January 1, 2016. SFASNo. 24 (2015 Amendments) requires an entityto consider contributions from employees orthird parties when accounting for definedbenefit plans.

F-36

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

27

2. IKHTISAR KEBIJAKAN AKUNTANSI YANGSIGNIFIKAN (lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES (continued)

m. Imbalan Kerja (lanjutan) m. Employee Benefits (continued)

Ketika iuran tersebut sehubungan denganjasa, iuran tersebut harus diatribusikan padaperiode jasa sebagai imbalan negatif.Amandemen ini mengklarifikasi bahwa, jikajumlah iuran tidak bergantung pada jumlahtahun jasa, entitas diperbolehkan untukmengakui iuran tersebut sebagai pengurangdari biaya jasa dalam periode ketika jasaterkait diberikan, daripada mengalokasikaniuran tersebut pada periode jasa.

Where the contributions are linked to service,these should be attributed to periods of serviceas a negative benefit. These amendmentsclarify that, if the amount of the contributions isindependent of the number of service years,an entity is permitted to recognize suchcontributions as a reduction in the service costin the period in which the service is rendered,instead of allocating the contributions to theperiods of service.

Penerapan PSAK No. 24 (Amandemen 2015)tidak memiliki dampak signifikan terhadaplaporan keuangan konsolidasian.

The adoption of SFAS No. 24 (Amendments2015) has no significant impact on theconsolidated financial statements.

Perusahaan memiliki program pensiun iuranpasti untuk seluruh karyawan yang memenuhisyarat. Kontribusi Perusahaan atas rencanapensiun dicatat sebagai beban pada saatterjadinya.

The Company has defined contributionpension plans covering substantially all of itseligible employees. The Company’scontributions to the retirement plans arerecognized as expense when incurred.

Selain itu, Perusahaan mengakui estimasiliabilitas untuk imbalan pensiun karyawansesuai dengan Undang-UndangKetenagakerjaan No. 13/2003 tanggal25 Maret 2003 (“UU No. 13”) dan tunjangancuti panjang sesuai dengan kebijakannyadimana Perusahaan membayarkan imbalankerja kepada karyawan yang telah bekerjauntuk jumlah tahun tertentu. Provisi untukimbalan kerja tersebut diestimasi berdasarkanpenilaian aktuaria yang dibuat oleh aktuariaindependen, dengan menggunakan metodeprojected unit credit. Imbalan ini tidak didanai.

In addition, the Company recognizes itsestimated liability for employee retirementbenefits in accordance with Labor LawNo. 13/2003 dated March 25, 2003 (“LawNo. 13”) and long leave allowance inaccordance with its policies whereby theCompany makes benefit payments toemployees who have worked for a certainnumber of years. Provisions for suchemployee benefits are estimated based on theactuarial valuation prepared by anindependent actuary, using the projected unitcredit method. This benefit is unfunded.

Untuk imbalan pensiun karyawan, pengukurankembali, yang terdiri dari keuntungan dankerugian aktuaria, diakui segera di dalamlaporan posisi keuangan konsolidasian dengandebet dan kredit terkait dengan saldo labamelalui Pendapatan Komprehensif Lain dalamperiode terjadinya. Pengukuran kembali tidakdireklasifikasi ke laba atau rugi dalam periodeberikutnya. Biaya jasa lalu diakui dalam labaatau rugi pada tanggal perubahan ataukurtailmen program dan pada tanggalPerusahaan mengakui biaya restrukturisasiterkait, mana yang lebih awal terjadi.

For employee retirement benefits, re-measurement, comprising of actuarial gainsand losses, is recognized immediately in theconsolidated statement of financial positionwith a corresponding debit or credit to retainedearnings through Other ComprehensiveIncome in the period in which they occur. Re-measurements are not reclassified to profit orloss in subsequent periods. Past service costsare recognized in profit or loss on the earlier ofthe date of the plan amendment or curtailmentand the date that the Company recognizesrestructuring-related costs.

F-37

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

28

2. IKHTISAR KEBIJAKAN AKUNTANSI YANGSIGNIFIKAN (lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES (continued)

m. Imbalan Kerja (lanjutan) m. Employee Benefits (continued)

Bunga neto dihitung dengan menggunakantingkat diskonto terhadap liabilitas atau asetimbalan pasti neto. Biaya jasa terdiri dari biayajasa kini dan biaya jasa lalu, keuntungan dankerugian kurtailmen dan penyelesaian tidakrutin, jika ada. Beban atau pendapatan bunganeto, dan biaya jasa diakui dalam laba ataurugi.

Net interest is calculated by applying thediscount rate to the net defined benefit liabilityor asset. Service costs comprise currentservice costs and past service costs, gains andlosses on curtailments and non-routinesettlements, if any. Net interest expense orincome, and service costs are recognized inprofit or loss.

Untuk imbalan jangka panjang lainnya,pendapatan atau beban bunga neto, biayajasa dan keuntungan atau kerugian aktuariasegera diakui dalam laba atau rugi.

For other long-term benefits, net interestincome or expense, service cost and actuarialgains or losses are immediately recognized inprofit or loss.

n. Laba per Saham n. Earnings per Share

Laba per saham dasar dihitung denganmembagi laba periode berjalan dengan jumlahrata-rata tertimbang saham biasa yangberedar pada periode yang bersangkutan.

Basic earnings per share is computed bydividing profit for the period by the weightedaverage number of ordinary sharesoutstanding during the period.

Perusahaan tidak mempunyai efek berpotensisaham biasa yang bersifat dilutif pada tanggal30 Juni 2016 dan oleh karenanya, laba persaham dilusian tidak dihitung dan disajikanpada laporan laba rugi dan penghasilankomprehensif lain konsolidasian.

The Company has no outstanding dilutivepotential ordinary shares as of June 30, 2016and accordingly, no diluted earnings per shareis calculated and presented in the consolidatedstatements of profit or loss and othercomprehensive income.

o. Provisi o. Provisions

Perusahaan dan Entitas Anak menerapkanInterpretasi Pernyataan Standar AkuntansiKeuangan (“ISAK”) No. 30 (2015),“Pungutan”, berlaku efektif 1 Januari 2016.

The Company and Subsidiaries adoptedInterpretations of Statement of FinancialAccounting Standards (ISAK) No. 30 (2015),”Levies”, effective January 1, 2016.

Interpretasi ini membahas akuntansi liabilitasmembayar pungutan jika termasuk dalamruang lingkup PSAK No. 57, “Provisi, LiabilitasKontinjensi dan Aset Kontinjensi”. Interpretasiini juga membahas akuntansi liabilitasmembayar pungutan yang waktu danjumlahnya pasti.

This Interpretation addresses the accountingfor a liability to pay a levy if that liability iswithin the scope of SFAS No. 57, “Provisions,Contingent Liabilities and Contingent Assets”.It also addresses the accounting for a liabilityto pay a levy whose timing and amount iscertain.

F-38

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

29

2. IKHTISAR KEBIJAKAN AKUNTANSI YANGSIGNIFIKAN (lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES (continued)

o. Provisi (lanjutan) o. Provisions (continued)

Penerapan ISAK No. 30 (2015) tidak memilikidampak yang signifikan terhadap laporankeuangan konsolidasian.

The adoption of ISAK No. 30 (2015) has nosignificant impact on the consolidated financialstatements.

Provisi diakui ketika Perusahaan dan EntitasAnak memiliki kewajiban kini (bersifat hukumdan/atau konstruktif) yang diakibatkan olehperistiwa di masa lalu, dan besarkemungkinannya arus keluar sumber dayayang mengandung manfaat ekonomis akandiperlukan untuk menyelesaikan kewajibandan estimasi yang andal mengenai jumlahkewajiban tersebut dapat dibuat.

Provisions are recognized when the Companyand Subsidiaries have a present obligation.(legal and/or constructive) as a result of a pastevent, and it is probable that an outflow ofresources embodying economic benefits willbe required to settle the obligation and areliable estimate can be made of the amountof the obligation.

p. Informasi Segmen p. Segment Information

Informasi segmen berdasarkan PSAK No. 5(Revisi 2009), “Segmen Operasi”, yangmensyaratkan pengungkapan yangmemungkinkan para pengguna laporankeuangan dapat mengevaluasi sifat dandampak keuangan dari aktivitas bisnis dimanaentitas terlibat dan lingkungan ekonomidimana entitas beroperasi.

Segment information is based on SFAS No. 5(Revised 2009), “Operating Segments”, whichrequires disclosures that will enable users offinancial statements to evaluate the nature andfinancial effects of the business activities inwhich the entity engages and the economicenvironments in which it operates.

Segmen adalah bagian yang dapat dibedakandari Perusahaan yang terlibat baik dalammenyediakan produk tertentu (segmen usaha),maupun dalam menyediakan produk dalamlingkungan ekonomi tertentu (segmengeografis), yang memiliki risiko dan imbalanyang berbeda dengan segmen lainnya.

A segment is a distinguishable component ofthe Company that is engaged either inproviding certain products (business segment),or in providing products within a particulareconomic environment (geographicalsegment), which is subject to risks andrewards that are different from those of othersegments.

Berdasarkan informasi yang digunakan olehmanajemen dalam mengevaluasi kinerjaPerusahaan, Perusahaan hanya mempunyaisatu segmen yang dapat dilaporkan (listrik).Seluruh aktivitas operasional Perusahaandiselenggarakan di Indonesia.

Based on the information used bymanagement in evaluating the performance ofthe Company, the Company has only onereportable segment (electricity). All of theoperational activities of the Company areconducted in Indonesia.

F-39

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

30

2. IKHTISAR KEBIJAKAN AKUNTANSI YANGSIGNIFIKAN (lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES (continued)

q. Transaksi dan Saldo dalam Mata UangAsing

q. Foreign Currency Transactions andBalances

Mata uang fungsional dan penyajianPerusahaan dan Entitas Anak adalah DolarAmerika Serikat (AS). Mata uang fungsionaladalah mata uang yang mengatur kegiatanusaha Perusahaan dan Entitas Anak.Perusahaan dan Entitas Anak melakukanpembukuan akun-akunnya dalam Dolar AS.

The Company and Subsidiaries’ functional andpresentation currency is the United States(US) Dollar. The functional currency is thecurrency governing the business activities ofthe Company and Subsidiaries. The Companyand Subsidiaries maintain their books ofaccounts in US Dollar.

Transaksi-transaksi dalam mata uang asingdicatat dalam jumlah Dolar AS denganmenggunakan kurs yang berlaku pada saattransaksi dilakukan. Pada tanggal laporanposisi keuangan, aset dan liabilitas moneterdalam mata uang asing, secara substansialdalam Rupiah, disesuaikan untukmencerminkan kurs yang berlaku pada tanggaltersebut, dan keuntungan atau kerugian yangterjadi dikreditkan atau dibebankan padaoperasi tahun berjalan.

Transactions involving foreign currencies arerecorded in the accounts at US Dollar amountsusing the rates of exchange prevailing at thetime the transactions are made. At statementof financial position date, monetary assets andliabilities denominated in foreign currencies,substantially in Rupiah, are adjusted to reflectthe rates of exchange prevailing at such date,and the resulting gains or losses are creditedor charged to current operations.

Pada tanggal 30 Juni 2016 dan tanggal31 Desember 2015, 2014 dan 2013, kurs tukaryang digunakan adalah sebagai berikut:

As of June 30, 2016 and December 31, 2015,2014 and 2013, the rates of exchange appliedwere as follows:

31 Desember/December 31,30 Juni 2016/June 30, 2016 2015 2014 2013

Rupiah 13.180/AS$1 13.795/AS$1 12.440/AS$1 12.189/AS$1 RupiahEuro EUR€0,8996/AS$1 EUR€0,9154/AS$1 EUR€0,8220/AS$1 EUR€0,7246/AS$1 Euro

r. Penyesuaian Tahunan 2015 r. 2015 Annual Improvements

Perusahaan dan Entitas Anak menerapkanpenyesuaian-penyesuaian tahun 2015, berlakuefektif 1 Januari 2016 sebagai berikut:

The Company and Subsidiaries adopted thefollowing 2015 annual improvements effectiveJanuary 1, 2016:

• PSAK No. 7 (Penyesuaian 2015),“Pengungkapan Pihak-pihak Berelasi”.

• SFAS No. 7 (2015 Improvement),“Related Party Disclosures”.

Penyesuaian ini mengklarifikasi bahwaentitas manajemen (entitas yangmenyediakan jasa personil manajemenkunci) adalah pihak berelasi yangdikenakan pengungkapan pihak berelasi.Di samping itu, entitas yang memakaientitas manajemen mengungkapkan biayayang terjadi untuk jasa manajemennya.

The improvement clarifies that amanagement entity (an entity that provideskey management personnel services) is arelated party subject to the related partydisclosures. In addition, an entity that usesa management entity is required todisclose the expenses incurred formanagement services.

F-40

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

31

2. IKHTISAR KEBIJAKAN AKUNTANSI YANGSIGNIFIKAN (lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES (continued)

r. Penyesuaian Tahunan 2015 (lanjutan) r. 2015 Annual Improvements (continued)

• PSAK No. 16 (Penyesuaian 2015), “AsetTetap”.

• SFAS No. 16 (2015 Improvement),“Property, Plant and Equipment”.

Penyesuaian ini mengklarifikasi bahwadalam PSAK 16 aset dapat direvaluasidengan mengacu pada data pasar yangdapat diobservasi terhadap jumlahtercatat bruto ataupun neto. Sebagaitambahan, akumulasi penyusutan adalahperbedaan antara jumlah tercatat brutodan jumlah tercatat aset tersebut. Jumlahtercatat aset tersebut disajikan kembalipada jumlah revaluasiannya.

The improvement clarifies that in PSAK16 the asset may be revalued byreference to observable data on eitherthe gross or the net carrying amount. Inaddition, the accumulated depreciation isthe difference between the gross andcarrying amount of the asset. Thecarrying amount of the asset is restatedby the revalued amount.

• PSAK No. 25 (Penyesuaian 2015),“Kebijakan Akuntansi, Perubahan EstimasiAkuntansi dan Kesalahan”.

• SFAS No. 25 (2015 Improvement),“Accounting Policies, Changes inAccounting Estimates and Errors”.

Penyesuaian ini memberikan koreksieditorial pada PSAK No. 25 paragraf 27.

This improvement provides editorialcorrection for paragraph 27 of SFASNo. 25.

• PSAK No. 53 (Penyesuaian 2015),“Pembayaran Berbasis Saham”.

• SFAS No. 53 (2015 Improvement),“Share-based Payment”.

Penyesuaian ini mengklarifikasi beberapaisu yang berkaitan dengan definisi kondisikinerja dan kondisi jasa yang manamerupakan kondisi vesting.

The improvement clarifies various issuesrelating to the definitions of performanceand service conditions which are vestingconditions.

• PSAK No. 68 (Penyesuaian 2015),“Pengukuran Nilai Wajar”.

• SFAS No. 68 (2015 Improvement), “FairValue Measurement”.

Penyesuaian ini mengklarifikasi bahwapengecualian portofolio dalam PSAKNo. 68 dapat diterapkan tidak hanya padakelompok aset keuangan dan liabilitaskeuangan, tetapi juga diterapkan padakontrak lain dalam ruang lingkup PSAKNo. 55.

The improvement clarifies that theportfolio exception in SFAS No. 68 canbe applied not only to financial assetsand financial liabilities, but also to othercontracts within the scope of SFASNo. 55.

Penerapan dari penyesuaian-penyesuaiantahunan 2015 tidak memiliki dampaksignifikan terhadap laporan keuangankonsolidasian.

The adoption of the 2015 annualimprovements has no significant impacton the consolidated financial statements.

F-41

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

32

2. IKHTISAR KEBIJAKAN AKUNTANSI YANGSIGNIFIKAN (lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES (continued)

s. Pertimbangan, Estimasi dan Asumsi s. Judgments, Estimates and Assumptions

Penyusunan laporan keuangan konsolidasiansesuai dengan Standar Akuntasi Keuangan diIndonesia mengharuskan manajemen untukmembuat pertimbangan, estimasi dan asumsiyang mempengaruhi jumlah yang dilaporkan.Karena ketidakpastian yang melekat dalammembuat estimasi, hasil aktual yangdilaporkan di periode mendatang dapatdidasarkan pada jumlah yang berbeda dariestimasi tersebut.

The preparation of consolidated financialstatements in conformity with IndonesianFinancial Accounting Standards requiresmanagement to make judgments, estimationsand assumptions that affect amounts reportedtherein. Due to inherent uncertainty in makingestimates, actual results to be reported infuture periods may be based on amounts thatdiffer from those estimates.

Pertimbangan Judgments

Dalam proses penerapan kebijakan akuntansiPerusahaan dan Entitas Anak, manajementelah membuat pertimbangan sebagai berikut:

In the process of applying the Company andSubsidiaries’ accounting policies, themanagement has made its judgments asfollows:

Mata uang fungsional Functional currency

Mata uang fungsional adalah mata uang darilingkungan ekonomi primer dimanaPerusahaan dan Entitas Anak beroperasi.Manajemen mempertimbangkan mata uangyang paling mempengaruhi pendapatan danbeban dari jasa yang diberikan dan indikatorlainnya dalam menentukan mata uang yangpaling tepat menggambarkan pengaruhekonomi dari transaksi, kejadian dan kondisiyang mendasari.

The functional currency is the currency of theprimary economic environment in which theCompany and Subsidiaries operate. Themanagement considered the currency thatmainly influences the revenue and cost ofrendering services and other indicators indetermining the currency that most faithfullyrepresents the economic effects of theunderlying transactions, events and conditions.

Klasifikasi aset dan liabilitas keuangan Classification of financial assets and liabilities

Perusahaan dan Entitas Anak menetapkanklasifikasi aset dan liabilitas tertentu sebagaiaset dan liabilitas keuangan apabila aset danliabilitas tersebut memenuhi definisi yangditetapkan dalam PSAK No. 55 (Revisi 2014)berdasarkan pertimbangan Perusahaan danEntitas Anak.

The Company and Subsidiaries determine theclassification of certain assets and liabilities asfinancial assets and liabilities if they meet thedefinition set forth in SFAS No. 55 (Revised2014) based on the Company andSubsidiaries’ judgment.

Dengan demikian, aset dan liabilitas keuangandiakui sesuai dengan kebijakan akuntansiPerusahaan dan Entitas Anak sepertidiungkapkan pada Catatan 2f.

Accordingly, the financial assets and liabilitiesare accounted for in accordance with theCompany and Subsidiaries’ accountingpolicies disclosed in Note 2f.

F-42

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

33

2. IKHTISAR KEBIJAKAN AKUNTANSI YANGSIGNIFIKAN (lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES (continued)

s. Pertimbangan, Estimasi dan Asumsi(lanjutan)

s. Judgments, Estimates and Assumptions(continued)

Estimasi dan asumsi Estimates and assumptions

Asumsi utama mengenai masa depan dansumber utama lain dalam mengestimasiketidakpastian pada tanggal pelaporan yangmemiliki risiko signifikan yang dapatmenyebabkan penyesuaian yang materialterhadap nilai tercatat aset dan liabilitas dalamperiode berikutnya diungkapkan di bawah ini:

The key assumptions concerning the futureand other key sources of estimationuncertainty at the reporting date that have asignificant risk of causing a materialadjustment to the carrying amounts of assetsand liabilities within the next financial periodare disclosed below:

Imbalan pensiun Retirement benefits

Beban imbalan pensiun dalam Undang-Undang No. 13/2003 ditentukan denganmenggunakan penilaian aktuaria. Penilaianaktuaria melibatkan asumsi mengenai tingkatdiskonto, harga emas, kenaikan gaji tahunan,dan tingkat kematian. Karena sifat jangkapanjang dari kewajiban ini, estimasi tersebutdipengaruhi ketidakpastian yang signifikan.Rincian kewajiban imbalan pensiun dibahaspada Catatan 14.

Retirement benefits expense under LawNo. 13/2003 is determined using actuarialvaluation. The actuarial valuation involvesassumptions about discount rates, gold price,annual salary increases and mortality rates.Due to the long-term nature of this obligation,such estimates are subject to significantuncertainty. The details of retirement benefitsobligations are discussed in Note 14.

Pajak Taxes

Aset pajak tangguhan diakui sepanjang besarkemungkinannya bahwa penghasilan kenapajak akan tersedia sehingga aset pajaktangguhan tersebut dapat digunakan. Namun,tidak ada kepastian bahwa Perusahaan atauEntitas Anak akan menghasilkan penghasilankena pajak yang mencukupi sehingga seluruhatau sebagian aset pajak tangguhan dapatdigunakan. Perusahaan dan Entitas Anakmengevaluasi proyeksi kinerja dalam menilaikecukupan penghasilan kena pajak masamendatang.

Deferred tax assets are recognized to theextent that it is probable that sufficient taxableincome will be available against whichdeferred tax assets can be utilized. However,there is no assurance that the Company orSubsidiaries will generate sufficient taxableincome to allow all or part of the deferred taxassets to be utilized. The Company andSubsidiaries evaluate their projectedperformance in assessing the sufficiency offuture taxable income.

Ada ketidakpastian yang berkaitan denganpenafsiran peraturan pajak yang rumit,perubahan dalam undang-undang pajak, danjumlah dan waktu dihasilkannya penghasilankena pajak masa mendatang. Mengingathubungan bisnis yang luas dan perjanjiankontrak yang bersifat jangka panjang,perbedaan timbul antara hasil aktual danasumsi yang dibuat, atau perubahan asumsitersebut di masa mendatang, mengharuskanpenyesuaian di masa mendatang ataspendapatan dan beban pajak yang sudahdicatat.

Uncertainties exist with respect to theinterpretation of complex tax regulations,changes in tax laws, and the amount andtiming of future taxable income. Given the widerange of business relationships and the long-term nature of existing contractualagreements, differences arising between theactual results and the assumptions made, orfuture changes to such assumptions, couldnecessitate future adjustments to tax incomeand expenses already recorded.

F-43

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

34

2. IKHTISAR KEBIJAKAN AKUNTANSI YANGSIGNIFIKAN (lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES (continued)

s. Pertimbangan, Estimasi dan Asumsi(lanjutan)

s. Judgments, Estimates and Assumptions(continued)

Estimasi dan asumsi (lanjutan) Estimates and assumptions (continued)

Pajak (lanjutan) Taxes (continued)

Perusahaan dan Entitas Anak menetapkanprovisi, jika ada, berdasarkan estimasi wajar,untuk kemungkinan konsekuensi audit olehotoritas perpajakan. Jumlah provisi tersebut,jika ada, berdasarkan berbagai faktor, sepertipengalaman dari audit pajak sebelumnya daninterpretasi yang berbeda atas peraturan pajakoleh Perusahaan dan Entitas Anak danotoritas perpajakan yang bertanggung jawab.Perbedaan dalam interpretasi tersebut dapattimbul untuk isu-isu yang bervariasi tergantungpada kondisi yang berlaku di masing-masingdomisili Perusahaan dan Entitas Anak.

The Company and Subsidiaries establishprovisions, if any, based on reasonableestimates, for possible consequences of auditsby the tax authorities. The amount of suchprovisions, if any, is based on various factors,such as experience of previous tax audits anddiffering interpretations of tax regulations bythe Company and Subsidiaries and theresponsible tax authority. Such differences ininterpretation may arise for a wide variety ofissues depending on the conditions prevailingin the respective domicile of the Company andSubsidiaries.

Memperkirakan umur manfaat aset tetap Estimating useful lives of property, plant andequipment

Perusahaan mengestimasi umur manfaat asettetap berdasarkan periode dimana aset-asettersebut diharapkan tersedia untuk digunakandan pengalaman historis. Estimasi umurmanfaat aset tetap ditelaah setidaknya setiaptahun dan diperbaharui jika ekspektasiberbeda dari estimasi sebelumnyadikarenakan penggunaan fisik dan kerusakandan keusangan secara teknis atau komersialdalam penggunaan aset-aset tersebut.

The Company estimates the useful lives ofproperty, plant and equipment based on theperiod over which the assets are expected tobe available for use and historical experience.The estimated useful lives of property, plantand equipment are reviewed at least annuallyand are updated if expectations differ fromprevious estimates due to physical wear andtear and technical or commercialobsolescence on the use of these assets.

Hasil operasi masa mendatang dapatterpengaruh secara material oleh perubahandalam estimasi yang dibawa oleh perubahandalam faktor-faktor yang disebutkan di atas.Penurunan dalam estimasi umur manfaat akanmenambah beban penyusutan danmengurangi aset tidak lancar.

It is possible that future results of operationscould be materially affected by changes inthese estimates brought about by changes infactors mentioned above. A reduction in theestimated useful lives would increasedepreciation expense and decrease non-current assets.

F-44

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

35

2. IKHTISAR KEBIJAKAN AKUNTANSI YANGSIGNIFIKAN (lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES (continued)

s. Pertimbangan, Estimasi dan Asumsi(lanjutan)

s. Judgments, Estimates and Assumptions(continued)

Estimasi dan asumsi (lanjutan) Estimates and assumptions (continued)

Evaluasi penurunan nilai pada aset Evaluation of asset impairment

Perusahaan menelaah aset tetap untukpenurunan nilai. Hal ini termasukmempertimbangkan indikasi tertentu daripenurunan nilai seperti perubahan signifikandalam penggunaan aset, penurunan signifikannilai pasar aset, keusangan atau kerusakanfisik aset, kinerja yang secara signifikan kurangdari ekspektasi historis atau proyeksi hasiloperasi mendatang dan kecenderungannegatif industri atau ekonomi yang signifikan.Sebuah aset diturunkan nilainya saat nilaiterpulihkannya, yaitu jumlah yang lebih tinggiantara harga jual neto dan nilai pakai, kurangdari nilai tercatatnya.

The Company reviews property, plant andequipment for impairment of value. Thisincludes considering certain indications ofimpairment such as significant changes inasset usage, significant decline in assets’market value, obsolescence or physicaldamage of an asset, significant underperformance relative to expected historical orprojected future operating results andsignificant negative industry or economictrends. An asset is impaired when therecoverable amount, the higher of the netselling price and value in use, is less than thecarrying amount.

Perusahaan dan Entitas Anak juga menelaahaset keuangan mereka untuk penurunan nilai.Hal ini memerlukan sebuah estimasi arus kasmasa mendatang dari aset-aset tersebutdengan bukti penurunan nilai yang obyektif.

The Company and Subsidiaries also reviewtheir financial assets for impairment of value.This requires an estimation of the future cashflows from such assets with objective evidenceof impairment.

Penyisihan atas keusangan persediaan Provision for inventory obsolescence

Penyisihan atas keusangan persediaandiestimasi berdasarkan fakta dan keadaanterbaik yang tersedia, termasuk tetapi tidakterbatas pada, kondisi fisik persediaan itusendiri. Provisi dievaluasi kembali dandisesuaikan jika informasi tambahan yangditerima mempengaruhi jumlah yangdiestimasi.

Provision for inventory obsolescence isestimated based on the best available factsand circumstances, including but not limited to,the inventories’ own physical condition. Theprovision is re-evaluated and adjusted asadditional information received affects theamount estimated.

t. Standar akuntansi yang telah disahkannamun belum berlaku efektif

t. Accounting standards issued but not yeteffective

Dewan Standar Akuntansi Keuangan (DSAK)mengesahkan amandemen PSAK No. 1,“Penyajian Laporan Keuangan”, tentangPrakarsa Pengungkapan, berlaku efektif1 Januari 2017.

The Indonesia Financial Accounting StandardsBoard (DSAK) issued amendments to SFASNo. 1, “ Presentation of Financial Statements”,on Disclosures Initiative, which are effective onJanuary 1, 2017.

Perusahaan dan Entitas Anak bermaksuduntuk menerapkan standar tersebut, jikadipandang relevan, saat telah menjadi efektif.

The Company and Subsidiaries intend toadopt the amendments, if applicable, whenthey become effective.

F-45

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

36

2. IKHTISAR KEBIJAKAN AKUNTANSI YANGSIGNIFIKAN (lanjutan)

2. SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES (continued)

t. Standar akuntansi yang telah disahkannamun belum berlaku efektif (lanjutan)

t. Accounting standards issued but not yeteffective (continued)

Amandemen ini mengklarifikasi, bukanmengubah secara signifikan, persyaratanPSAK No. 1, antara lain, mengklarifikasimengenai materialitas, fleksibilitas urutansistematis penyajian catatan atas laporankeuangan dan pengidentifikasian kebijakanakuntansi signifikan.

These amendments clarify, rather thansignificantly change, the existing SFAS No. 1requirements, among others, to clarify themateriality, flexibility as to the order in which topresent the notes to the financial statementsand identification of significant accountingpolicies.

Perusahaan dan Entitas Anak sedangmengevaluasi dampak dari standar akuntansitersebut dan belum menentukan dampaknyaterhadap laporan keuangan konsolidasian.

The Company and Subsidiaries are presentlyevaluating and have not yet determined theeffects of the above amendments on theconsolidated financial statements.

3. KAS DAN SETARA KAS 3. CASH AND CASH EQUIVALENTS

Kas dan setara kas terdiri dari: Cash and cash equivalents consist of:

31 Desember/December 31,30 Juni 2016/June 30, 2016 2015 2014 2013

Kas 9.863 9.424 8.842 7.384 Cash on hand

Bank Cash in banksRupiah Rupiah

PT Bank Negara Indonesia PT Bank Negara Indonesia(Persero) Tbk 5.785.882 16.443.777 36.387.622 29.426.885 (Persero) Tbk

PT Bank OCBC NISP Tbk 3.153.991 3.435.896 4.832.288 3.501.807 PT Bank OCBC NISP TbkPT Bank Central Asia Tbk 1.087.062 948.934 226.005 42.464 PT Bank Central Asia TbkStandard Chartered Bank 400.860 383.787 - - Standard Chartered BankCitibank, N.A., Cabang Jakarta 340.555 77.489 9.271.135 - Citibank, N.A., Jakarta BranchThe Hongkong and Shanghai The Hongkong and Shanghai

Banking Corporation Ltd., Banking Corporation Ltd.,Cabang Jakarta (HSBC) 94.477 1.710.517 4.591.728 1.034.721 Jakarta Branch (HSBC)

PT Bank Maybank Indonesia Tbk PT Bank Maybank Indonesia Tbk(dahulu PT Bank Internasional (formerly PT Bank InternasionalIndonesia Tbk) 58.935 56.020 671.000 35.850 Indonesia Tbk)

PT Bank Commonwealth - - 69.095 7.989 PT Bank Commonwealth

10.921.762 23.056.420 56.048.873 34.049.716

Dolar Amerika Serikat United States DollarPT Bank UOB Indonesia 60.086.780 73.171 393.348 45.576 PT Bank UOB IndonesiaPT Bank OCBC NISP Tbk 60.022.656 9.279 254.928 6.197 PT Bank OCBC NISP TbkPT Bank Negara Indonesia PT Bank Negara Indonesia

(Persero) Tbk 29.625.401 21.157.885 22.146.968 7.377.502 (Persero) TbkDeutsche Bank AG, Deutsche Bank AG,

Amsterdam, Amsterdam,Belanda 2.373.552 7.488.190 7.452.582 7.266.085 The Netherlands

HSBC 1.520.212 5.027.951 1.128.399 2.191.953 HSBCPT Bank Maybank Indonesia Tbk PT Bank Maybank Indonesia Tbk

(dahulu PT Bank Internasional (formerly PT Bank InternasionalIndonesia Tbk) 17.479 17.499 40.075 3.200 Indonesia Tbk)

Credit Suisse AG, Singapura 14.962 15.000 14.950 - Credit Suisse AG, SingaporePT Bank Commonwealth - - 65 149 PT Bank Commonwealth

153.661.042 33.788.975 31.431.945 16.890.662

F-46

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

37

3. KAS DAN SETARA KAS (lanjutan) 3. CASH AND CASH EQUIVALENTS (continued)31 Desember/December 31,

30 Juni 2016/June 30, 2016 2015 2014 2013

Bank (lanjutan) Cash in banks (continued)Euro Euro

HSBC 710.363 92.206 2.560.976 197.780 HSBCDeutsche Bank AG, Deutsche Bank AG,

Amsterdam, Amsterdam,Belanda 629.977 679.113 827.204 1.047.873 The Netherlands

PT Bank OCBC NISP Tbk 214 211 228.963 - PT Bank OCBC NISP Tbk

1.340.554 771.530 3.617.143 1.245.653

Sub-jumlah 165.923.358 57.616.925 91.097.961 52.186.031 Sub-total

Deposito berjangka Time depositsRupiah Rupiah

PT Bank UOB Indonesia 22.761.760 - - 39.505.496 PT Bank UOB IndonesiaPT Bank Negara Indonesia PT Bank Negara Indonesia

(Persero) Tbk 7.587.253 - 3.376.206 25.310.713 (Persero) TbkPT Bank Commonwealth - - 803.859 820.412 PT Bank CommonwealthPT Bank OCBC NISP Tbk - - - 10.121.827 PT Bank OCBC NISP Tbk

30.349.013 - 4.180.065 75.758.448

Dolar Amerika Serikat United States DollarPT Bank Negara Indonesia PT Bank Negara Indonesia

(Persero) Tbk 30.000.000 - - - (Persero) TbkCredit Suisse AG, Singapura - - - 2.791.359 Credit Suisse AG, Singapore

30.000.000 - - 2.791.359

Sub-jumlah 60.349.013 - 4.180.065 78.549.807 Sub-total

Jumlah 226.282.234 57.626.349 95.286.868 130.743.222 Total

Tingkat suku bunga per tahun untuk depositoberjangka:

Annual interest rates on time deposits:

31 Desember/December 31,30 Juni 2016/June 30, 2016 2015 2014 2013

Dolar Amerika Serikat 0,75% 0,02% - 0,20% 0,01% - 3,10% 0,10% - 3,10% United States DollarRupiah 4,30% - 7,50% 7,75% - 9,25% 5,50% - 10,50% 5,50% - 9,50% Rupiah

Kas di bank memiliki tingkat suku bungamengambang berdasarkan suku bunga depositobank harian. Deposito berjangka umumnyaditempatkan untuk periode (3) tiga bulan.

Cash in banks earns interest at floating rates basedon daily bank deposit rates. Time deposits aregenerally placed on a three (3) - month period.

Pada tanggal 30 Juni 2016 dan tanggal31 Desember 2015, 2014 dan 2013, tidak ada kasdan setara kas yang dijadikan jaminan atas utangdan pinjaman lainnya.

As of June 30, 2016 and December 31, 2015, 2014and 2013, there are no cash and cash equivalentsincluded above that are pledged as collateral toloans and other borrowings.

Semua rekening bank ditempatkan pada bankpihak ketiga.

All bank accounts are placed in third party banks.

F-47

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

38

4. PIUTANG USAHA 4. TRADE RECEIVABLES

Rincian dari akun ini adalah sebagai berikut: The details of this account are as follows:

a. Berdasarkan Pelanggan a. By Customer

31 Desember/December 31,30 Juni 2016/June 30, 2016 2015 2014 2013

Pihak Ketiga 68.608.673 72.470.624 61.838.317 59.916.058 Third PartiesCadangan atas kerugian

penurunan nilai (1.639.672) (1.550.515) (1.297.606) (1.324.327) Allowance for impairment loss

Neto 66.969.001 70.920.109 60.540.711 58.591.731 Net

b. Berdasarkan Umur b. By Aging Category31 Desember/December 31,

30 Juni 2016/June 30, 2016 2015 2014 2013

Belum jatuh tempo 51.681.699 51.331.550 45.676.477 43.924.915 Not yet due1 - 30 hari setelah jatuh tempo 13.359.025 18.841.260 13.910.862 14.219.645 1 - 30 days past due31 - 60 hari setelah jatuh tempo 801.607 151.575 166.376 119.780 31 - 60 days past due61 - 90 hari setelah jatuh tempo 146.730 198.097 86.631 92.940 61 - 90 days past due91 - 120 hari setelah jatuh tempo 578.948 128.256 80.796 62.085 91 - 120 days past dueLebih dari 120 hari setelah

jatuh tempo 2.040.664 1.819.886 1.917.175 1.496.693 More than 120 days past due

Jumlah 68.608.673 72.470.624 61.838.317 59.916.058 TotalCadangan atas kerugian

penurunan nilai (1.639.672) (1.550.515) (1.297.606) (1.324.327) Allowance for impairment loss

Neto 66.969.001 70.920.109 60.540.711 58.591.731 Net

c. Berdasarkan Mata Uang c. By Currency

31 Desember/December 31,30 Juni 2016/June 30, 2016 2015 2014 2013

Rupiah 68.288.815 72.150.622 60.312.510 58.506.949 RupiahDolar Amerika Serikat 319.858 320.002 1.525.807 1.409.109 United States Dollar

Jumlah 68.608.673 72.470.624 61.838.317 59.916.058 TotalCadangan atas kerugian

penurunan nilai (1.639.672) (1.550.515) (1.297.606) (1.324.327) Allowance for impairment loss

Neto 66.969.001 70.920.109 60.540.711 58.591.731 Net

Piutang usaha tidak dikenakan bunga dan memilikijangka waktu 30 hari.

Trade receivables are non-interest bearing andhave 30 days’ term.

Mutasi cadangan atas kerugian penurunan nilaiadalah sebagai berikut:

The movements in the allowance for impairmentloss are as follows:

31 Desember/December 31,30 Juni 2016/June 30, 2016 2015 2014 2013

Saldo awal periode 1.550.515 1.297.606 1.324.327 1.669.309 Balance at beginning of periodPenyisihan selama periode

berjalan (Catatan 22) 140.984 1.045.448 472.775 866.553 Provisions during the period (Note 22)Penghapusan periode berjalan - (665.083) (472.775) (866.553) Write-off during the periodPengaruh selisih kurs tukar Effect of foreign exchange rate

mata uang asing (51.827) (127.456) (26.721) (344.982) differences

Saldo akhir periode 1.639.672 1.550.515 1.297.606 1.324.327 Balance at end of period

F-48

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

39

4. PIUTANG USAHA (lanjutan) 4. TRADE RECEIVABLES (continued)

Berdasarkan hasil penelaahan status dari akunpiutang pada akhir periode, manajemenberpendapat bahwa cadangan atas kerugianpenurunan nilai cukup untuk menutupikemungkinan kerugian atas tidak tertagihnyapiutang tersebut.

Based on a review of the status of the receivableaccounts at the end of the period, the managementis of the opinion that the allowance for impairmentloss is sufficient to cover possible losses onuncollectible accounts.

Pada tanggal 30 Juni 2016 dan tanggal31 Desember 2015, 2014 dan 2013, tidak adapiutang usaha yang dijadikan jaminan atas utangdan pinjaman lainnya.

As of June 30, 2016 and December 31, 2015, 2014and 2013, there are no trade receivables that arepledged as collateral to loans and otherborrowings.

5. PERSEDIAAN 5. INVENTORIES

Persediaan terdiri dari: Inventories consist of:

31 Desember/December 31,30 Juni 2016/June 30, 2016 2015 2014 2013

Suku cadang 17.212.646 16.880.318 18.220.640 17.310.914 Spare partsPerlengkapan dan bahan pembantu 5.197.351 4.928.826 4.978.573 5.272.243 Supplies and consumablesSolar 2.999.743 3.066.618 3.298.489 3.462.904 Diesel fuelBatubara 4.652.348 - - - Coal

Jumlah 30.062.088 24.875.762 26.497.702 26.046.061 TotalPenyisihan atas keusangan Allowance for obsolescence

dan penurunan nilai pasar (1.290.135) (1.106.689) (969.593) (880.158) and decline in market values

Neto 28.771.953 23.769.073 25.528.109 25.165.903 Net

Perubahan saldo penyisihan atas keusangan danpenurunan nilai pasar persediaan adalah sebagaiberikut:

The movement in the balance of allowance forobsolescence and decline in market values ofinventories is as follows:

31 Desember/December 31,30 Juni 2016/June 30, 2016 2015 2014 2013

Saldo awal periode 1.106.689 969.593 880.158 567.574 Balance at beginning of periodPenyisihan periode berjalan (Catatan 21) 183.446 137.096 89.435 312.584 Provisions during the period (Note 21)

Saldo akhir periode 1.290.135 1.106.689 969.593 880.158 Balance at end of period

Rincian penyisihan atas keusangan dan penurunannilai pasar persediaan adalah sebagai berikut:

The details of allowance for obsolescence anddecline in market values of inventories are asfollows:

31 Desember/December 31,30 Juni 2016/June 30, 2016 2015 2014 2013

Suku cadang 1.024.491 891.129 829.657 760.195 Spare partsPerlengkapan dan bahan pembantu 265.644 215.560 139.936 119.963 Supplies and consumables

Jumlah 1.290.135 1.106.689 969.593 880.158 Total

F-49

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

40

5. PERSEDIAAN (lanjutan) 5. INVENTORIES (continued)

Solar dan batu bara dinyatakan sebesar biayaperolehan.

Diesel fuel and coal are stated at cost.

Berdasarkan hasil penelaahan terhadap hargapasar dan kondisi fisik persediaan pada tanggalpelaporan, manajemen berkeyakinan bahwapenyisihan tersebut di atas cukup untuk menutupkemungkinan kerugian dari keusangan danpenurunan nilai pasar persediaan.

Based on a review of the market prices andphysical conditions of the inventories at thereporting dates, management believes that theabove allowance is adequate to cover any possiblelosses from obsolescence and decline in marketvalues of inventories.

Pada tanggal 30 Juni 2016 dan tanggal31 Desember 2015, 2014 dan 2013, tidak adapersediaan yang dijadikan jaminan atas utang danpinjaman lainnya.

As of June 30, 2016 and December 31, 2015, 2014and 2013, there are no inventories that are pledgedas collateral to loans and other borrowings.

Pada tanggal 30 Juni 2016, persediaanPerusahaan telah diasuransikan terhadap risikokerugian kebakaran, banjir, gempa bumi dan risikolainnya (Catatan 9). Menurut pendapat manajemenPerusahaan, nilai pertanggungan tersebut cukupuntuk menutup kemungkinan kerugian atas risikotersebut.

As of June 30, 2016, the Company’s inventoriesare covered by insurance against losses by fire,flood, earthquake and other risks (Note 9). In theopinion of the Company’s management, theinsurance coverage is adequate to cover possiblelosses that may arise from such risks.

6. UANG MUKA 6. ADVANCES

Uang muka terdiri dari: Advances consist of:31 Desember/December 31,

30 Juni 2016/June 30, 2016 2015 2014 2013

Uang muka kepada pemasok 1.053.768 2.511.037 10.417.674 9.996.359 Advance payments to suppliersUang muka lain-lain 185.480 293.042 1.131.034 338.337 Other advances

Jumlah 1.239.248 2.804.079 11.548.708 10.334.696 Total

Pada tanggal 30 Juni 2016 dan tanggal31 Desember 2015, 2014 dan 2013, uang mukakepada pemasok terutama terdiri dari uang mukakepada PT Pertamina (Persero) (Pertamina)masing-masing sebesar AS$Nihil, AS$Nihil,AS$6.491.413 dan AS$5.772.056, untuk pembeliangas (Catatan 27b), dan PT GE Operation Indonesiadan Mitsubishi Heavy Industries dengan totalmasing-masing sebesar AS$47.457,AS$1.203.370, AS$2.350.000 dan AS$3.638.117,untuk pembelian suku cadang.

As of June 30, 2016 and December 31, 2015, 2014and 2013, advance payments to suppliers mainlyconsist of advances to PT Pertamina (Persero)(Pertamina) amounting to US$Nil, US$Nil,US$6,491,413 and US$5,772,056, respectively, forpurchase of gas (Note 27b), and PT GE OperationIndonesia and Mitsubishi Heavy Industriesaggregating US$47,457, US$1,203,370,US$2,350,000 and US$3,638,117, respectively, forpurchase of spare parts.

F-50

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

41

7. INVESTASI 7. INVESTMENTS

Investasi terdiri dari reksadana dan surat utangtercatat yang diklasifikasikan sebagai investasitersedia untuk dijual.

Investments consist of mutual fund and quoteddebt securities classified as available-for-saleinvestments.

Nilai wajar atas reksadana dan surat utangditentukan dengan mengacu pada harga pasaraktif. Untuk periode enam bulan yang berakhirpada tanggal-tanggal 30 Juni 2016 dan 2015 dantahun yang berakhir pada tanggal-tanggal31 Desember 2015, 2014 dan 2013, laba (rugi)yang belum terealisasi dari investasi yang tersediauntuk dijual masing-masing sebesar AS$5.456(setelah dikurangi pajak penghasilan AS$1.819),AS$11.092 (setelah dikurangi pajak penghasilansebesar AS$3.697), AS$11.092 (setelah dikurangipajak penghasilan sebesar AS$3.697),(AS$465.068) (setelah dikurangi pajak penghasilansebesar AS$155.023) dan AS$295.635 (setelahdikurangi pajak penghasilan sebesar AS$122.177)dan disajikan sebagai "Perubahan nilai wajarinvestasi tersedia untuk dijual" termasuk di dalamakun Penghasilan (Rugi) Komprehensif Lain padalaporan laba rugi dan penghasilan komprehensiflain konsolidasian.

The fair value of the mutual fund and quoted debtsecurities is determined by reference to publishedprice quotations in an active market. For the six-month periods ended June 30, 2016 and 2015 andthe years ended December 31, 2015, 2014 and2013, the unrealized gain (loss) on available-for-sale investments amounted to US$5,456 (net ofincome tax of US$1,819), US$11,092 (net ofincome tax of US$3,697), US$11,092 (net ofincome tax of US$3,697), (US$465,068) (net ofincome tax of US$155,023) and US$295,635 (netof income tax of US$122,177), respectively, and ispresented as “Changes in fair value of available-for-sale investments”, under the OtherComprehensive Income (Loss) section of theconsolidated statements of profit or loss and othercomprehensive income.

8. REKENING BANK YANG DIBATASIPENGGUNAANNYA

8. RESTRICTED CASH IN BANKS

Rincian akun ini adalah sebagai berikut: The details of this account are as follows:31 Desember/December 31,

30 Juni 2016/June 30, 2016 2015 2014 2013

PT Bank Negara Indonesia PT Bank Negara Indonesia(Persero) Tbk 151.745 144.980 160.772 82.041 (Persero) Tbk

PT Bank OCBC NISP Tbk - 6.864 - - PT Bank OCBC NISP TbkPT Bank UOB Indonesia (UOB) - - 12.268.093 21.140.000 PT Bank UOB Indonesia (UOB)PT Bank Maybank Indonesia Tbk PT Bank Maybank Indonesia Tbk

(dahulu PT Bank Internasional (formerly PT Bank InternasionalIndonesia Tbk) (Maybank) - - 3.864.096 3.868.516 Indonesia Tbk) (Maybank)

Jumlah 151.745 151.844 16.292.961 25.090.557 Total

Saldo kas yang dibatasi penggunaannya di UOBmerupakan uang jaminan untuk standby letters ofcredit yang diperoleh dari UOB sehubungandengan kontrak antara Perusahaan dan ValmetTechnologies Oy (sebelumnya Metso Power Oy)(Catatan 27i).

Restricted cash accounts with UOB representsecurity deposit for the standby letters of creditobtained from UOB in connection with the contractbetween the Company and Valmet TechnologiesOy (formerly Metso Power Oy) (Note 27i).

Saldo kas yang dibatasi penggunaannya diMaybank merupakan uang jaminan untuk standbyletters of credit yang diperoleh dari Maybanksehubungan dengan "Perjanjian Jual Beli" antaraPerusahaan dan PT Perusahaan Gas Negara(Persero) Tbk (Catatan 27f).

Restricted cash accounts with Maybank representsecurity deposit for the standby letters of creditobtained from Maybank in connection with the“Sale and Purchase Agreement” between theCompany and PT Perusahaan Gas Negara(Persero) Tbk (Note 27f).

F-51

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

42

9. ASET TETAP 9. PROPERTY, PLANT AND EQUIPMENT

Akun ini terdiri dari sebagai berikut: This account consists of the following:

30 Juni 2016/June 30, 2016

Saldo awal/ Saldo akhir/Beginning Penambahan/ Pelepasan/ Reklasifikasi/ Ending

balance Additions Disposals Reclassification balance

Biaya Perolehan CostHak atas tanah 26.387.654 - - - 26.387.654 LandrightsBangunan dan prasarana 60.023.974 265.652 - - 60.289.626 Buildings and infrastructureMesin dan peralatan 865.760.350 5.396.447 - - 871.156.797 Machinery and equipmentPerabotan, perlengkapan Furniture, fixtures and office

dan peralatan kantor 7.697.849 479.666 31.626 - 8.145.889 equipmentPeralatan transportasi 3.109.929 625.093 169.147 - 3.565.875 Transportation equipmentAset dalam penyelesaian: Assets in progress:

Mesin dan peralatan Machinery and equipmentdalam instalasi/ under installation/konstruksi 335.682.471 56.677.985 - - 392.360.456 construction

Tanah dalampengembangan 20.024.744 - - - 20.024.744 Land under development

Jumlah biaya perolehan 1.318.686.971 63.444.843 200.773 - 1.381.931.041 Total cost

Akumulasi Penyusutan Accumulated DepreciationBangunan dan prasarana 52.129.586 347.046 - - 52.476.632 Buildings and infrastructureMesin dan peralatan 505.885.629 18.743.103 - - 524.628.732 Machinery and equipmentPerabotan, perlengkapan Furniture, fixtures and office

dan peralatan kantor 4.730.091 510.945 29.253 - 5.211.783 equipmentPeralatan transportasi 1.612.986 274.451 104.265 - 1.783.172 Transportation equipment

Jumlah akumulasi penyusutan 564.358.292 19.875.545 133.518 - 584.100.319 Total accumulated depreciation

Nilai buku neto 754.328.679 797.830.722 Net book value

31 Desember 2015/December 31, 2015

Saldo awal/ Saldo akhir/Beginning Penambahan/ Pelepasan/ Reklasifikasi/ Ending

balance Additions Disposals Reclassification balance

Biaya Perolehan CostHak atas tanah 6.022.418 - - 20.365.236 26.387.654 LandrightsBangunan dan prasarana 53.724.235 363.414 - 5.936.325 60.023.974 Buildings and infrastructureMesin dan peralatan 775.204.177 13.799.084 - 76.757.089 865.760.350 Machinery and equipmentPerabotan, perlengkapan Furniture, fixtures and office

dan peralatan kantor 6.274.783 1.445.331 22.265 - 7.697.849 equipmentPeralatan transportasi 2.726.301 841.130 457.502 - 3.109.929 Transportation equipmentAset dalam penyelesaian: Assets in progress:

Mesin dan peralatan Machinery and equipmentdalam instalasi/ under installation/konstruksi 253.691.201 164.684.684 - (82.693.414) 335.682.471 construction

Tanah dalampengembangan 40.389.980 - - (20.365.236) 20.024.744 Land under development

Jumlah biaya perolehan 1.138.033.095 181.133.643 479.767 - 1.318.686.971 Total cost

Akumulasi Penyusutan Accumulated DepreciationBangunan dan prasarana 51.557.269 572.317 - - 52.129.586 Buildings and infrastructureMesin dan peralatan 466.683.453 39.202.176 - - 505.885.629 Machinery and equipmentPerabotan, perlengkapan Furniture, fixtures and office

dan peralatan kantor 3.807.367 941.397 18.673 - 4.730.091 equipmentPeralatan transportasi 1.546.121 478.765 411.900 - 1.612.986 Transportation equipment

Jumlah akumulasi penyusutan 523.594.210 41.194.655 430.573 - 564.358.292 Total accumulated depreciation

Nilai buku neto 614.438.885 754.328.679 Net book value

F-52

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

43

9. ASET TETAP (lanjutan) 9. PROPERTY, PLANT AND EQUIPMENT(continued)

31 Desember 2014/December 31, 2014

Saldo awal/ Saldo akhir/Beginning Penambahan/ Pelepasan/ Reklasifikasi/ Ending

balance Additions Disposals Reclassification balance

Biaya Perolehan CostHak atas tanah 6.022.418 - - - 6.022.418 LandrightsBangunan dan prasarana 53.316.878 407.357 - - 53.724.235 Buildings and infrastructureMesin dan peralatan 764.513.826 10.690.351 - - 775.204.177 Machinery and equipmentPerabotan, perlengkapan Furniture, fixtures and office

dan peralatan kantor 5.121.339 1.187.987 34.543 - 6.274.783 equipmentPeralatan transportasi 2.789.322 206.921 269.942 - 2.726.301 Transportation equipmentAset dalam penyelesaian: Assets in progress:

Mesin dan peralatan Machinery and equipmentdalam instalasi/ under installation/konstruksi 107.822.471 145.868.730 - - 253.691.201 construction

Tanah dalampengembangan 32.818.073 7.571.907 - - 40.389.980 Land under development

Jumlah biaya perolehan 972.404.327 165.933.253 304.485 - 1.138.033.095 Total cost

Akumulasi Penyusutan Accumulated DepreciationBangunan dan prasarana 50.751.052 806.217 - - 51.557.269 Buildings and infrastructureMesin dan peralatan 427.241.833 39.441.620 - - 466.683.453 Machinery and equipmentPerabotan, perlengkapan Furniture, fixtures and office

dan peralatan kantor 3.123.286 717.006 32.925 - 3.807.367 equipmentPeralatan transportasi 1.337.980 457.227 249.086 - 1.546.121 Transportation equipment

Jumlah akumulasi penyusutan 482.454.151 41.422.070 282.011 - 523.594.210 Total accumulated depreciation

Nilai buku neto 489.950.176 614.438.885 Net book value

31 Desember 2013/December 31, 2013

Saldo awal/ Saldo akhir/Beginning Penambahan/ Pelepasan/ Reklasifikasi/ Ending

balance Additions Disposals Reclassification balance

Biaya Perolehan CostHak atas tanah 6.022.418 - - - 6.022.418 LandrightsBangunan dan prasarana 52.626.476 690.402 - - 53.316.878 Buildings and infrastructureMesin dan peralatan 746.595.931 17.813.481 - 104.414 764.513.826 Machinery and equipmentPerabotan, perlengkapan Furniture, fixtures and office

dan peralatan kantor 4.229.877 913.369 21.907 - 5.121.339 equipmentPeralatan transportasi 2.292.707 724.191 227.576 - 2.789.322 Transportation equipmentAset dalam penyelesaian: Assets in progress:

Mesin dan peralatan Machinery and equipmentdalam instalasi/ under installation/konstruksi 17.426.044 90.500.841 - (104.414) 107.822.471 construction

Tanah dalampengembangan - 32.818.073 - - 32.818.073 Land under development

Jumlah biaya perolehan 829.193.453 143.460.357 249.483 - 972.404.327 Total cost

Akumulasi Penyusutan Accumulated DepreciationBangunan dan prasarana 49.558.845 1.192.207 - - 50.751.052 Buildings and infrastructureMesin dan peralatan 387.061.397 40.180.436 - - 427.241.833 Machinery and equipmentPerabotan, perlengkapan Furniture, fixtures and office

dan peralatan kantor 2.542.004 602.485 21.203 - 3.123.286 equipmentPeralatan transportasi 1.085.789 425.756 173.565 - 1.337.980 Transportation equipment

Jumlah akumulasi penyusutan 440.248.035 42.400.884 194.768 - 482.454.151 Total accumulated depreciation

Nilai buku neto 388.945.418 489.950.176 Net book value

F-53

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

44

9. ASET TETAP (lanjutan) 9. PROPERTY, PLANT AND EQUIPMENT(continued)

Rincian beban penyusutan adalah sebagai berikut: The details of depreciation expense are as follows:

30 Juni/June 30, 31 Desember/December 31,

2016 2015 2015 2014 2013(Enam bulan/ (Enam bulan/ (Satu tahun/ (Satu tahun/ (Satu tahun/Six months) Six months) One year) One year) One year)

Beban pokok penjualan(Catatan 21) 19.319.367 20.191.854 40.259.555 40.849.559 41.920.567 Cost of sales (Note 21)

Beban umum dan administrasi General and administrative expenses(Catatan 22) 510.838 370.042 855.956 532.553 438.203 (Note 22)

Beban penjualan (Catatan 23) 45.340 33.969 79.144 39.958 42.114 Selling expenses (Note 23)

Jumlah 19.875.545 20.595.865 41.194.655 41.422.070 42.400.884 Total

Biaya pinjaman yang dikapitalisasi ke aset tetapmasing-masing sebesar AS$10.095.308,AS$8.414.504, AS$11.836.065, AS$6.770.264 danAS$2.615.016 untuk periode enam bulan yangberakhir pada tanggal-tanggal 30 Juni 2016 dan2015 dan tahun yang berakhir pada tanggal-tanggal 31 Desember 2015, 2014 dan 2013. Sukubunga efektif yang digunakan untuk menentukanbiaya pinjaman yang dikapitalisasi sebesar 7,25%untuk periode enam bulan yang berakhir padatanggal-tanggal 30 Juni 2016 dan 2015 dan tahunyang berakhir pada tanggal-tanggal 31 Desember2015, 2014 dan 2013.

Borrowing costs capitalized to property, plant andequipment amounted to US$10,095,308,US$8,414,504, US$11,836,065, US$6,770,264 andUS$2,615,016 for the six-month periods endedJune 30, 2016 and 2015 and the years endedDecember 31, 2015, 2014 and 2013, respectively.The effective interest rate used to determine theborrowing costs eligible for capitalization was about7.25% for the six-month periods ended June 30,2016 and 2015 and the years ended December 31,2015, 2014 and 2013.

Pada tanggal 30 Juni 2016, aset tetap Perusahaantermasuk persediaan (Catatan 5) dan peralatanlistrik yang tidak digunakan dalam operasi(Catatan 10) telah diasuransikan terhadap risikokerugian atas kebakaran, banjir, gempa bumi danrisiko lainnya berdasarkan suatu paket polissebesar AS$617.000.000. Menurut pendapatmanajemen Perusahaan, nilai pertanggungantersebut cukup untuk menutup kemungkinankerugian atas risiko tersebut.

As of June 30, 2016, the Company’s property, plantand equipment, including inventories (Note 5) andelectrical equipment not used in operations(Note 10), are covered by insurance against lossesby fire, flood, earthquake and other risks underblanket policies for US$617,000,000. In the opinionof the Company’s management, the insurancecoverage is adequate to cover possible losses thatmay arise from such risks.

Pada tanggal 30 Juni 2016 dan tanggal31 Desember 2015, 2014 dan 2013, manajemenberkeyakinan bahwa tidak terdapat penurunan nilaiatas aset tetap.

As of June 30, 2016 and December 31, 2015, 2014and 2013, management is of the opinion that noimpairment on property, plant and equipment hasoccurred.

Rincian penjualan peralatan adalah sebagaiberikut:

The details of sale of equipment are as follows:

30 Juni/June 30, 31 Desember/December 31,

2016 2015 2015 2014 2013(Enam bulan/ (Enam bulan/ (Satu tahun/ (Satu tahun/ (Satu tahun/Six months) Six months) One year) One year) One year)

Hasil neto 77.835 121.788 213.177 116.562 116.982 Net proceedsNilai buku neto 67.255 26.750 49.194 22.474 54.715 Net book value

Keuntungan 10.580 95.038 163.983 94.088 62.267 Gain

F-54

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

45

9. ASET TETAP (lanjutan) 9. PROPERTY, PLANT AND EQUIPMENT(continued)

Pada tanggal 30 Juni 2016, aset dalampenyelesaian terutama merupakan proyekpembangunan pembangkit berbahan bakarbatubara, dan tanah dalam pengembanganmasing-masing dengan tingkat penyelesaiansebesar 82% dan 89%, dan jumlah biaya yangtelah dikeluarkan masing-masing sebesarAS$391.700.680 dan AS$20.024.744. Aset dalampenyelesaian diestimasikan selesai pada tahun2016.

As of June 30, 2016, the assets in progress mainlyrepresent construction of coal fired power plant,and land under development which were 82% and89% completed, respectively, and with total costincurred amounting to US$391,700,680 andUS$20,024,744, respectively. The assets inprogress are estimated to be completed in 2016.

Pada tanggal 30 Juni 2016 dan tanggal31 Desember 2015, 2014 dan 2013, tidak ada asettetap yang digunakan sebagai jaminan atas utangdan pinjaman lainnya.

As of June 30, 2016 and December 31, 2015, 2014and 2013, there is no property, plant andequipment used as collateral to loans and otherborrowings.

Pada tanggal 30 Juni 2016, tidak ada aset tetapyang tidak dipakai untuk sementara.

As of June 30, 2016, there is no temporarily idleproperty, plant and equipment.

Pada tanggal 30 Juni 2016, nilai perolehan asettetap Perusahaan yang telah disusutkan penuhnamun masih digunakan adalah sebesarAS$270.951.199.

As of June 30, 2016, the cost of property, plant andequipment that are fully depreciated but are stillbeing used by the Company amounted toUS$270,951,199.

Pada tanggal 30 Juni 2016, berdasarkanpenelaahan atas estimasi umur manfaat, nilairesidu dan metode penyusutan aset tetap,manajemen berkeyakinan tidak terdapat perubahanyang diperlukan terkait dengan estimasi umurmanfaat, nilai residu dan metode penyusutan untukaset tetap.

As of June 30, 2016, based on a review of theestimated useful lives, residual values andmethods of depreciation of property, plant andequipment, management believes that there wereno changes necessary on the related useful lives,residual values and method of depreciation ofproperty, plant and equipment.

Berdasarkan laporan No. 31B/LF-A/MWH-1/HM/II/2016 tertanggal 16 April 2016 dari KJPPMunir Wisnu Heru & Rekan, penilai independen,nilai wajar aset tetap Perusahaan pada tanggal31 Desember 2015 berjumlah sebesarAS$866.293.179 (tidak diaudit).

Based on the report dated April 16, 2016 of KJPPMunir Wisnu Heru & Rekan No. 31B/LF-A/MWH-1/HM/II/2016, an independent appraiser, the fairvalue of the Company’s property, plant andequipment amounted to US$866,293,179 as ofDecember 31, 2015 (unaudited).

F-55

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

46

9. ASET TETAP (lanjutan) 9. PROPERTY, PLANT AND EQUIPMENT(continued)

Hak atas tanah atau “Hak Guna Bangunan” (HGB)Perusahaan, selain hak atas tanah masih dalamproses yang terdaftar atas nama Perusahaanseperti yang disebutkan di bawah ini, akan berakhirpada tahun sebagai berikut:

The Company’s landrights or “Hak GunaBangunan” (HGB), other than the landrights still inprocess of being registered to the Company’sname as mentioned below, will expire in thefollowing years:

Luas Tanah/ Tahun Berakhir/No. of Square Meters Year of Expiration

___________________________________________________ ____________________________________________

155,055 20223,909 20231,160 20274,445 20295,777 20322,506 20366,443 20391,795 20401,524 2041

12,380 204233,767 2043

970,608 2045

Manajemen berpendapat bahwa hak atas tanahyang ada akan diperpanjang oleh PemerintahIndonesia pada saat jatuh tempo karenaberdasarkan hukum Indonesia hak atas tanahyang digunakan dapat diperpanjang denganpermintaan dari pemegang HGB (bergantung padapersetujuan Pemerintah Indonesia). Pada tanggal30 Juni 2016, hak atas tanah seluas 1.568.507meter persegi dalam proses pendaftaran atasnama Perusahaan.

Management believes that the existing landrightswill be renewed by the Government of Indonesiaupon expiration because under the lawsof Indonesia the landrights use can berenewed upon the request of the HGB holder(subject to the Government of Indonesia’sapproval). As of June 30, 2016, landrights covering1,568,507 square meters are in the process ofbeing registered to the Company’s name.

10. PERALATAN LISTRIK YANG TIDAKDIGUNAKAN DALAM OPERASI

10. ELECTRICAL EQUIPMENT NOT USED INOPERATIONS

Akun ini terdiri dari panel dan meteran jam wattyang belum dipasang yang akan direklasifikasi keaset tetap bersangkutan setelah pemasangan.

This account consists of uninstalled panel and watthour meter which will be reclassified to theappropriate property, plant and equipment uponinstallation.

Pada tanggal 30 Juni 2016, peralatan listrikPerusahaan telah diasuransikan terhadap risikokerugian kebakaran, banjir, gempa bumi dan risikolainnya (Catatan 9). Menurut pendapat manajemenPerusahaan, nilai pertanggungan tersebut cukupuntuk menutup kemungkinan kerugian atas risikotersebut.

As of June 30, 2016, the Company’s electricalequipment is covered by insurance against lossesby fire, flood, earthquake and other risks (Note 9).In the opinion of the Company’s management, theinsurance coverage is adequate to cover possiblelosses that may arise from such risks.

F-56

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

47

11. PERPAJAKAN 11. TAXATION

a. Tagihan Pajak a. Claims for Tax Refund

31 Desember/December 31,30 Juni 2016/June 30, 2016 2015 2014 2013

Pajak Penghasilan Badan Corporate Income Tax2013 - - 9.603.694 9.801.457 2013

Pajak Penghasilan - Pasal 26 Income Tax - Article 262010 2.845.455 2.718.600 - - 20102011 5.530.695 5.284.130 - - 20112012 8.361.723 7.988.946 - - 20122013 9.069.647 8.665.310 - - 2013

Jumlah 25.807.520 24.656.986 9.603.694 9.801.457 Total

Dikurangi bagian tidak lancar 25.807.520 24.656.986 - 9.801.457 Less non-current portion

Bagian lancar - - 9.603.694 - Current portion

b. Utang Pajak b. Taxes Payable

31 Desember/December 31,30 Juni 2016/June 30, 2016 2015 2014 2013

Pemotongan pajakpenghasilan atas: Withholding income taxes on:Gaji (Pasal 21) 2.200.191 3.526.388 2.439.839 2.825.320 Salaries (Article 21)Pembayaran sewa,

honorariumprofesional, dan Payment of rent, professionaljasa lainnya kepada fees, and other services topenduduk (Pasal 23) 85.037 35.959 61.333 34.821 residents (Article 23)

Pembayaran sewa Payment of rental ofkapal (Pasal 15) 3.625 1.155 - - ships (Article 15)

Pajak final (Pasal 4 (2)) 255.395 290.543 312.185 148.073 Final tax (Article 4 (2))Pajak pemerintah lokal 2.189.382 2.163.295 2.121.931 1.724.189 Local government tax

Pajak penghasilan badan: Corporate income tax:Cicilan interim (Pasal 25) 2.856.988 10.043.025 1.487.309 - Interim installment (Article 25)Pembayaran final (Pasal 29) 3.141.978 1.457.570 11.093.867 1.039.937 Final payment (Article 29)

Jumlah 10.732.596 17.517.935 17.516.464 5.772.340 Total

Rincian pajak penghasilan badan pembayaranfinal adalah sebagai berikut:

The details of corporate income tax - finalpayment are as follows:

31 Desember/December 31,30 Juni 2016/June 30, 2016 2015 2014 2013

Perusahaan The CompanyPembayaran final (Pasal 29) Final payment (Article 29)

31 Desember 2010 - - 56.705 57.873 December 31, 201031 Desember 2011 - - 652.320 665.752 December 31, 201131 Desember 2012 - - 309.930 316.312 December 31, 201231 Desember 2014 - - 10.074.912 - December 31, 201431 Desember 2015 - 1.457.570 - - December 31, 201530 Juni 2016 2.593.843 - - - June 30, 2016

Sub-jumlah 2.593.843 1.457.570 11.093.867 1.039.937 Sub-total

Entitas anak SubsidiariesPembayaran final 30 Juni 2016 548.135 - - - Final payment June 30, 2016

Jumlah 3.141.978 1.457.570 11.093.867 1.039.937 Total

F-57

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

48

11. PERPAJAKAN (lanjutan) 11. TAXATION (continued)

c. Komponen Pajak Penghasilan Badan c. Components of Corporate Income Tax30 Juni/June 30, 31 Desember/December 31,

2016 2015 2015 2014 2013(Enam bulan/ (Enam bulan/ (Satu tahun/ (Satu tahun/ (Satu tahun/Six months) Six months) One year) One year) One year)

Perusahaan The CompanyBeban pajak kini (16.975.133) (9.864.984) (24.834.715) (29.583.225) (4.867.541) Current tax expenseManfaat (beban) pajak

tangguhan 71.199.551 (1.506.282) (2.336.593) 4.292.226 (13.321.397) Deferred tax benefit (expense)Pajak atas revaluasi Final tax on revaluation of

aset tetap (7.646.782) - - - - property, plant and equipment

46.577.636 (11.371.266) (27.171.308) (25.290.999) (18.188.938)

Entitas anak SubsidiariesBeban pajak kini (548.135) - - - - Current tax expenseBeban pajak

tangguhan (75.401) (543.701) (1.069.059) (2.604.627) (1.199.415) Deferred tax expense

(623.536) (543.701) (1.069.059) (2.604.627) (1.199.415)

Konsolidasian ConsolidatedBeban pajak kini (17.523.268) (9.864.984) (24.834.715) (29.583.225) (4.867.541) Current tax expenseManfaat (beban) pajak

tangguhan 71.124.150 (2.049.983) (3.405.652) 1.687.599 (14.520.812) Deferred tax benefit (expense)Pajak atas revaluasi Final tax on revaluation of

aset tetap (7.646.782) - - - - property, plant and equipment

Manfaat (Beban) Pajak Income Tax BenefitPenghasilan 45.954.100 (11.914.967) (28.240.367) (27.895.626) (19.388.353) (Expense)

d. Perhitungan Pajak Penghasilan Badan d. Corporate Income Tax Computation

Estimasi penghasilan kena pajak dalamRupiah dan taksiran utang pajak penghasilan(tagihan pajak) dalam Dolar AS adalahsebagai berikut:

The estimated taxable income in Rupiah andthe resulting estimated income tax payable(claims for tax refund) in US Dollar are asfollows:

Disajikan dalam Ribuan Rupiah/Expressed in Thousands of Rupiah

30 Juni/June 30, 31 Desember/December 31,

2016 2015 2015 2014 2013(Enam bulan/ (Enam bulan/ (Satu tahun/ (Satu tahun/ (Satu tahun/Six months) Six months) One year) One year) One year)

Laba sebelum pajakpenghasilan per laporan Profit before income tax perlaba rugi dan penghasilan consolidated statements of profitkomprehensif lain or loss and other comprehensivekonsolidasian 1.121.637.125 483.213.541 1.160.982.233 1.355.473.633 213.015.460 income

Dikurangi penghasilansebelum pajak entitas Less income before tax ofanak yang dikonsolidasi (34.348.616) (28.464.561) (58.154.176) (18.887.672) (27.614.734) consolidated subsidiaries

Laba sebelum pajakpenghasilan yangdiatribusikan kepada Profit before income taxPerusahaan 1.087.288.509 454.748.980 1.102.828.057 1.336.585.961 185.400.726 attributable to the Company

Beda tetap Permanent differencesPendapatan yang dikenakan

pajak penghasilan final (5.722.522) (13.094.148) (20.149.687) (54.920.628) (61.202.310) Income subjected to final taxRepresentasi dan jamuan 7.991.423 6.694.449 16.094.910 15.439.096 27.378.932 Representation and entertainmentSumbangan dan hadiah 804.103 358.506 1.256.821 1.724.837 1.646.707 Donations and giftsBeban penyusutan atas aset Depreciation of non-depreciable

yang tidak disusutkan 822.844 638.419 1.357.061 1.212.297 1.080.538 assetsBeban dan denda pajak - 1.977.746 21.345.545 - - Tax expenses and penaltiesPenurunan nilai atas piutang Impairment loss on receivables

dan provisi lainnya - - 11.454.892 - - and other provisionsBiaya penerbitan saham (105.708.489) - - - - Share issuance cost

F-58

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

49

11. PERPAJAKAN (lanjutan) 11. TAXATION (continued)

d. Perhitungan Pajak Penghasilan Badan(lanjutan)

d. Corporate Income Tax Computation(continued)

Disajikan dalam Ribuan Rupiah/Expressed in Thousands of Rupiah

30 Juni/June 30, 31 Desember/December 31,

2016 2015 2015 2014 2013(Enam bulan/ (Enam bulan/ (Satu tahun/ (Satu tahun/ (Satu tahun/Six months) Six months) One year) One year) One year)

Beda temporer Temporary differencesPenyisihan imbalan kerja

karyawan (3.674.980) 16.091.317 38.594.364 48.132.838 13.185.601 Provision for employee benefitsBiaya pinjaman (26.258.416) (9.044.977) 59.092.663 39.950.962 31.402.252 Borrowing costs

Penyusutan (45.447.883) 52.679.586 98.993.148 22.415.579 12.004.892 DepreciationPenyisihan atas keusangan

persediaan 1.776.389 2.000.591 1.476.758 832.630 2.905.253 Provision for inventory obsolescenceKeuntungan atas

penjualan peralatan (645.863) (1.334.004) (1.998.542) (662.914) (849.561) Gain on sale of equipment

Estimasi penghasilan kena Estimated taxable incomepajak dalam Rupiah 911.225.115 511.716.465 1.330.345.990 1.410.710.658 212.953.030 in Rupiah

Provisi untuk bebanpajak kini dengantarif pajak yang Provision for current income taxberlaku 25% at applicable tax rate of 25%dalam Rupiah 227.806.279 127.929.116 332.586.497 352.677.664 53.238.257 in Rupiah

30 Juni/June 30, 31 Desember/December 31,

2016 2015 2015 2014 2013(Enam bulan/ (Enam bulan/ (Satu tahun/ (Satu tahun/ (Satu tahun/Six months) Six months) One year) One year) One year)

Provisi untuk bebanpajak kini dengantarif pajak yang Provision for current income taxberlaku 25% at applicable tax rate of 25%dalam Dolar AS 16.975.133 9.864.984 24.834.715 29.583.225 4.867.541 in US Dollar

Dikurangi pajak penghasilandibayar di muka: Less prepayments of income tax:Cicilan sementara

(Pasal 25) 13.220.511 11.150.218 21.269.078 16.949.936 13.985.511 Interim installments (Article 25)Pajak penghasilan atas

impor barang modal Income tax on importation of(Pasal 22) 1.160.779 1.794.527 2.108.067 2.558.377 683.487 capital goods (Article 22)

Jumlah pajakdibayar di muka 14.381.290 12.944.745 23.377.145 19.508.313 14.668.998 Total tax prepayments

Taksiran utang pajakpenghasilan Estimated income tax payable(tagihan pajak) (claims for tax refund)dalam Dolar AS 2.593.843 (3.079.761) 1.457.570 10.074.912 (9.801.457) in US Dollar

F-59

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

50

11. PERPAJAKAN (lanjutan) 11. TAXATION (continued)

e. Rekonsiliasi Pajak Penghasilan Badan e. Reconciliation of Corporate Income Tax

Rekonsiliasi antara beban pajak yang dihitungdengan mengaplikasikan tarif pajak yangberlaku 25% atas laba sebelum beban pajak,dan beban pajak penghasilan per laporan labarugi dan penghasilan komprehensif lainkonsolidasian untuk periode enam bulan yangberakhir pada tanggal-tanggal 30 Juni 2016dan 2015 dan tahun yang berakhir padatanggal-tanggal 31 Desember 2015, 2014 dan2013 adalah sebagai berikut:

The reconciliation between the income taxcalculated by applying the applicable tax rateof 25% to the profit before income tax, and theincome tax expense per consolidatedstatements of profit or loss and othercomprehensive income for the six-monthperiods ended June 30, 2016 and 2015 andthe years ended December 31, 2015, 2014and 2013 is as follows:

Disajikan dalam Dolar Amerika Serikat/Expressed in United States Dollar

30 Juni/June 30, 31 Desember/December 31,

2016 2015 2015 2014 2013(Enam bulan/ (Enam bulan/ (Satu tahun/ (Satu tahun/ (Satu tahun/Six months) Six months) One year) One year) One year)

Laba sebelum pajakpenghasilan per laporan Profit before income tax perlaba rugi dan penghasilan consolidated statements ofkomprehensif lain profit or loss and otherkonsolidasian 60.562.531 53.997.389 108.250.991 112.305.418 62.556.668 comprehensive income

Dikurangi penghasilansebelum pajak entitas Less income before tax ofanak yang dikonsolidasi (2.559.503) (2.194.978) (3.273.408) (4.194.766) (3.841.721) consolidated subsidiaries

Laba sebelum pajakpenghasilan yangdiatribusikan kepada Profit before income taxPerusahaan 58.003.028 51.802.411 104.977.583 108.110.652 58.714.947 attributable to the Company

Provisi untuk bebanpajak kini dengantarif pajak yang Provision for current income taxberlaku 25% (14.500.757) (12.950.603) (26.244.396) (27.027.663) (14.678.737) at applicable tax rate of 25%

Dampak pajak daripenyesuaian fiskal dan Tax effect of fiscal adjustmentsperbedaan tetap: and permanent differences:

Pendapatan yang dikenakanpajak penghasilan final 106.513 252.346 380.277 1.158.006 1.438.698 Income subjected to final tax

Dampak selisih kurs tukar Effect of foreign exchange ratemata uang asing 873.749 1.514.206 (370.599) 968.859 (4.569.000) differences

Representasi dan jamuan (148.527) (128.993) (300.637) (325.686) (315.094) Representation and entertainmentRevaluasi atas Revaluation of property,

aset tetap 65.945.884 - - - - plant and equipmentSumbangan dan hadiah (15.024) (6.886) (23.320) (36.654) (38.957) Donations and giftsBeban penyusutan atas aset Depreciation of non-depreciable

yang tidak disusutkan (15.329) (13.208) (25.333) (27.861) (25.848) assetsBeban dan denda pajak - (38.128) (379.709) - - Tax expenses and penaltiesPenurunan nilai atas piutang Impairment loss on receivables

dan provisi lainnya - - (207.591) - - and other provisionsBiaya penerbitan saham 1.977.909 - - - - Share issuance cost

Beban pajak penghasilanPerusahaan 54.224.418 (11.371.266) (27.171.308) (25.290.999) (18.188.938) Income tax expense - Company

Beban pajak penghasilanEntitas Anak (623.536) (543.701) (1.069.059) (2.604.627) (1.199.415) Income tax expense - Subsidiaries

Pajak final atas Final tax on revaluation ofrevaluasi aset tetap (7.646.782) - - - - property, plant and equipment

Manfaat (beban)pajak penghasilan 45.954.100 (11.914.967) (28.240.367) (27.895.626) (19.388.353) Income tax benefit (expense)

F-60

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

51

11. PERPAJAKAN (lanjutan) 11. TAXATION (continued)

f. Aset dan Liabilitas Pajak Tangguhan f. Deferred Tax Assets and Liabilities

30 Juni 2016/June 30, 2016

Manfaat (Beban)Pajak TangguhanPeriode Berjalan

(Enam Bulan)/Deferred Income

Tax BenefitSaldo Awal/ (Expense) for Saldo Akhir/Beginning Current Period EndingBalance (Six Months) Balance

Perusahaan CompanyLaba (rugi) badan Corporate profit (loss)

Estimasi liabilitas Estimated liability forimbalan kerja 2.981.420 195.651 3.177.071 employee benefits

Aset tetap (29.427.409) 70.640.567 41.213.158 Property, plant and equipmentPersediaan (1.135.370) 363.333 (772.037) Inventories

Sub-jumlah (27.581.359) 71.199.551 43.618.192 Sub-total

Penghasilan (rugi)komprehensif lain Other comprehensive income (loss)Estimasi liabilitas Estimated liability for

imbalan kerja 2.674.144 80.196 2.754.340 employee benefitsKeuntungan yang belum

terealisasi dari Unrealized gain oninvestasi tersedia available-for-saleuntuk dijual - (1.819) (1.819) investments

Sub-jumlah 2.674.144 78.377 2.752.521 Sub-total

Aset (liabilitas) pajaktangguhan neto (24.907.215) 71.277.928 46.370.713 Net deferred tax assets (liabilities)

Entitas anak SubsidiariesLaba (rugi) badan Corporate profit (loss)

Rugi fiskal 3.733.498 (3.733.498) - Fiscal lossBiaya penerbitan (1.021.734) 3.658.097 2.636.363 Issuance costs

Aset pajak tangguhan neto 2.711.764 (75.401) 2.636.363 Net deferred tax assets

Konsolidasi ConsolidatedAset (liabilitas) pajak

tangguhan neto (22.195.451) 71.202.527 49.007.076 Net deferred tax assets (liabilities)

F-61

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

52

11. PERPAJAKAN (lanjutan) 11. TAXATION (continued)

f. Aset dan Liabilitas Pajak Tangguhan(lanjutan)

f. Deferred Tax Assets and Liabilities(continued)

31 Desember 2015/December 31, 2015

Manfaat (Beban)Pajak TangguhanPeriode Berjalan

(Satu Tahun)/Deferred Income

Tax BenefitSaldo Awal/ (Expense) for Saldo Akhir/Beginning Current Period EndingBalance (One Year) Balance

Perusahaan CompanyLaba (rugi) badan Corporate profit (loss)

Estimasi liabilitas Estimated liability forimbalan kerja 2.803.010 178.410 2.981.420 employee benefits

Aset tetap (26.921.813) (2.505.596) (29.427.409) Property, plant and equipmentPersediaan (1.125.963) (9.407) (1.135.370) Inventories

Sub-jumlah (25.244.766) (2.336.593) (27.581.359) Sub-total

Penghasilan (rugi)komprehensif lain Other comprehensive income (loss)Estimasi liabilitas Estimated liability for

imbalan kerja 2.428.233 245.911 2.674.144 employee benefitsKeuntungan yang belum

terealisasi dari Unrealized gain oninvestasi tersedia available-for-saleuntuk dijual 3.697 (3.697) - investments

Sub-jumlah 2.431.930 242.214 2.674.144 Sub-total

Liabilitas pajak tangguhanneto (22.812.836) (2.094.379) (24.907.215) Net deferred tax liabilities

Entitas anak SubsidiariesLaba (rugi) badan Corporate profit (loss)

Rugi fiskal 5.082.862 (1.349.364) 3.733.498 Fiscal lossBiaya penerbitan (1.302.039) 280.305 (1.021.734) Issuance costs

Aset pajak tangguhan neto 3.780.823 (1.069.059) 2.711.764 Net deferred tax assets

F-62

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

53

11. PERPAJAKAN (lanjutan) 11. TAXATION (continued)

f. Aset dan Liabilitas Pajak Tangguhan(lanjutan)

f. Deferred Tax Assets and Liabilities(continued)

31 Desember 2014/December 31, 2014

Manfaat (Beban)Pajak TangguhanPeriode Berjalan

(Satu tahun)/Deferred Income

Tax BenefitSaldo Awal/ (Expense) for Saldo Akhir/Beginning Current Period EndingBalance (One Year) Balance

Perusahaan CompanyLaba (rugi) badan Corporate profit (loss)

Estimasi liabilitas Estimated liability forimbalan kerja 1.940.806 862.204 2.803.010 employee benefits

Aset tetap (30.302.184) 3.380.371 (26.921.813) Property, plant and equipmentPersediaan (1.175.614) 49.651 (1.125.963) Inventories

Sub-jumlah (29.536.992) 4.292.226 (25.244.766) Sub-total

Penghasilankomprehensif lain Other comprehensive incomeEstimasi liabilitas Estimated liability for

imbalan kerja 1.750.459 677.774 2.428.233 employee benefitsKerugian yang belum

terealisasi dari Unrealized loss oninvestasi tersedia available-for-saleuntuk dijual (151.326) 155.023 3.697 investments

Sub-jumlah 1.599.133 832.797 2.431.930 Sub-total

Liabilitas pajak tangguhanneto (27.937.859) 5.125.023 (22.812.836) Net deferred tax liabilities

Entitas anak SubsidiariesLaba (rugi) badan Corporate profit (loss)

Rugi fiskal 6.385.450 (1.302.588) 5.082.862 Fiscal lossBiaya penerbitan - (1.302.039) (1.302.039) Issuance costs

Aset pajak tangguhan neto 6.385.450 (2.604.627) 3.780.823 Net deferred tax assets

F-63

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

54

11. PERPAJAKAN (lanjutan) 11. TAXATION (continued)

f. Aset dan Liabilitas Pajak Tangguhan(lanjutan)

f. Deferred Tax Assets and Liabilities(continued)

31 Desember 2013/December 31, 2013

Manfaat (Beban)Pajak TangguhanPeriode Berjalan

(Satu tahun)/Deferred Income

Tax BenefitSaldo Awal/ (Expense) for Saldo Akhir/Beginning Current Period EndingBalance (One Year) Balance

Perusahaan CompanyLaba (rugi) badan Corporate profit (loss)

Estimasi liabilitas Estimated liability forimbalan kerja 2.571.836 (631.030) 1.940.806 employee benefits

Aset tetap (18.659.607) (11.642.577) (30.302.184) Property, plant and equipmentPersediaan (127.824) (1.047.790) (1.175.614) Inventories

Sub-jumlah (16.215.595) (13.321.397) (29.536.992) Sub-total

Rugi komprehensif lain Other comprehensive lossEstimasi liabilitas Estimated liability for

imbalan kerja 1.878.701 (128.242) 1.750.459 employee benefitsKeuntungan yang

belum terealisasi Unrealized gain ondari investasi tersedia available-for-saleuntuk dijual (29.149) (122.177) (151.326) investments

Sub-jumlah 1.849.552 (250.419) 1.599.133 Sub-total

Liabilitas pajak tangguhanneto (14.366.043) (13.571.816) (27.937.859) Net deferred tax liabilities

Entitas anak SubsidiariesLaba (rugi) badan Corporate profit (loss)

Rugi fiskal 7.584.865 (1.199.415) 6.385.450 Fiscal loss

Aset pajak tangguhan neto 7.584.865 (1.199.415) 6.385.450 Net deferred tax asset

Pada tanggal 30 Juni 2016 dan tanggal31 Desember 2015, 2014 dan 2013,manajemen berpendapat bahwa aset pajaktangguhan yang diakui dapat direalisasisepenuhnya.

As of June 30, 2016 and December 31, 2015,2014 and 2013, the management is of theopinion that the deferred tax assets recognizedare fully recoverable.

F-64

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

55

11. PERPAJAKAN (lanjutan) 11. TAXATION (continued)

f. Aset dan Liabilitas Pajak Tangguhan(lanjutan)

f. Deferred Tax Assets and Liabilities(continued)

Rincian pajak penghasilan tangguhan yangdiakui dalam laporan laba rugi danpenghasilan komprehensif lain konsolidasianadalah sebagai berikut:

The details of deferred income tax recognizedin the consolidated statements of profit or lossand other comprehensive income are asfollows:

30 Juni/June 30, 31 Desember/December 31,

2016 2015 2015 2014 2013(Enam bulan/ (Enam bulan/ (Satu tahun/ (Satu tahun/ (Satu tahun/Six months) Six months) One year) One year) One year)

Dibebankan ke: Charged to:Laba (rugi) untuk

periode berjalan 71.124.150 (2.049.983) (3.405.652) 1.687.599 (14.520.812) Profit (loss) for the current periodPenghasilan (rugi)

komprehensif lain 78.377 (232.507) 242.214 832.797 (250.419) Other comprehensive income (loss)

Jumlah 71.202.527 (2.282.490) (3.163.438) 2.520.396 (14.771.231) Total

g. Surat Ketetapan Pajak g. Tax Assessment Letters

Audit pajak untuk Pajak Penghasilan (PPh)Badan tahun pajak 2013 telah selesaidilakukan pada bulan April 2015. Perusahaanmenerima Surat Ketetapan Pajak Lebih Bayar(SKPLB) sejumlah Rp119.469.959.200 dimanajumlah tersebut lebih rendah dari jumlahtagihan pajak Perusahaan sebesarRp136.074.424.700. Perusahaan setuju atasjumlah lebih bayar tersebut dan mengakuiklaim yang tidak bisa tertagih untuk PPhBadan tahun 2013 sebesar Rp16.604.465.500(AS$1.362.250) dalam laporan laba rugi danpenghasilan komprehensif lain konsolidasiantahun 2013 sebagai penyesuaian retrospektifterhadap pajak penghasilan kini. Pada tanggal8 Juni 2015, Perusahaan telah menerimapengembalian atas lebih bayar tersebut.

The tax audit for corporate income tax for fiscalyear 2013 was completed in April 2015.The Company received tax overpayment letteramounting to Rp119,469,959,200 which islower compared to the Company’s claim for taxrefund of Rp136,074,424,700. The Companyagreed with such adjusted overpayment andrecognized the uncollectible claim for 2013corporate income tax of Rp16,604,465,500(US$1,362,250) in the 2013 consolidatedstatement of profit or loss and othercomprehensive income as a retrospectiveadjustment to current income tax. On June 8,2015, the Company received the refund for theoverpayment.

Pajak penghasilan pasal 26 tahun pajak 2013

Perusahaan menerima Surat Ketetapan PajakNo. 00001/204/13/062/15, 00002/204/13/062/15dan 00003/204/13/062/15 tanggal 9 Juli 2015dari Direktur Jenderal Pajak untuk kurang bayarpemotongan pajak penghasilan pasal 26masing-masing sebesar Rp2,83 miliar(AS$214.654), Rp56,94 miliar (AS$4.320.178)dan Rp59,77 miliar (AS$4.534.815) untuk tahunpajak 2013. Pemotongan pajak terkait denganbeban bunga dibayarkan kepada Entitas Anak.

Income tax article 26 for fiscal year 2013

The Company received tax assessment lettersNo. 00001/204/13/062/15, 00002/204/13/062/15and 00003/204/13/062/15 dated July 9, 2015from the Director General of Tax forunderpayment of withholding income taxarticle 26 amounting to Rp2.83 billion(US$214,654), Rp56.94 billion (US$4,320,178)and Rp59.77 billion (US$4,534,815),respectively, for the fiscal year 2013. Thewithholding tax relates to interest expense paidto its Subsidiary.

F-65

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

56

11. PERPAJAKAN (lanjutan) 11. TAXATION (continued)

g. Surat Ketetapan Pajak (lanjutan) g. Tax Assessment Letters (continued)

Pajak penghasilan pasal 26 tahun pajak 2013(lanjutan)

Pada tanggal 8 Agustus 2015, seperti yangdiwajibkan dalam undang-undang pajak,Perusahaan membayar ketetapan pajak danmengajukan surat keberatan resmi padatanggal 8 Oktober 2015. Jumlah yangdibayarkan dicatat sebagai bagian dari "TagihanPajak" dalam laporan posisi keuangankonsolidasian. Sampai dengan tanggalpenyelesaian laporan keuangan konsolidasian,belum ada surat keputusan yang diterbitkanoleh Direktur Jenderal Pajak.

Income tax article 26 for fiscal year 2013(continued)

On August 8, 2015, as required under the taxlaws, the Company paid the tax assessmentsand filed a formal objection on October 8, 2015.The amount paid is recorded as part of “Claimsfor Tax Refund” in the consolidated statementsof financial position. As of the completion dateof the consolidated financial statements, nodecision letter has yet been issued by theDirector General of Tax.

Manajemen Perusahaan berkeyakinan bahwaPerusahaan memiliki dasar yang kuat atasposisinya dan bahwa Direktur Jenderal Pajakakan mendukung sesuai posisi Perusahaan,oleh karena itu, tidak ada provisi yang diakuiuntuk ketetapan pajak tersebut.

The Company’s management believes that theCompany has a solid basis for its position andthat the Director General of Tax will rule in itsfavor, accordingly, no provision has beenrecognized in the accounts for such taxassessments.

Pajak penghasilan pasal 26 tahun pajak 2012Perusahaan menerima Surat Ketetapan PajakNo.00003/204/12/062/15, 00004/204/12/062/15,00005/204/12/062/15 dan 00006/204/12/062/15tanggal 13 Agustus 2015 dari Direktur JenderalPajak untuk kurang bayar pemotongan pajakpenghasilan pasal 26 masing-masingRp38 miliar (AS$2.883.225), Rp13,76 miliar(AS$1.043.742), Rp2,77 miliar (AS$210.115)dan Rp55,68 miliar (AS$4.224.641) untuk tahunpajak 2012. Pemotongan pajak terkait denganbeban bunga dibayarkan kepada Entitas Anak.Pada tanggal 10 September 2015, seperti yangdiwajibkan oleh undang-undang pajak,Perusahaan membayar ketetapan pajak danmengajukan surat keberatan resmi padatanggal 5 November 2015. Jumlah yangdibayarkan dicatat sebagai bagian dari "TagihanPajak" dalam laporan posisi keuangankonsolidasian. Sampai dengan tanggalpenyelesaian laporan keuangan konsolidasian,belum ada surat keputusan yang diterbitkanoleh Direktur Jenderal Pajak.

Income tax article 26 for fiscal year 2012The Company received tax assessment lettersNo.00003/204/12/062/15, 00004/204/12/062/15,00005/204/12/062/15 and 00006/204/12/062/15dated August 13, 2015 from the DirectorGeneral of Tax for underpayment of incometax article 26 amounting toRp38 billion (US$2,883,225), Rp13.76 billion(US$1,043,742), Rp2.77 billion (US$210,115)and Rp55.68 billion (US$4,224,641),respectively, for the fiscal year 2012. Thewithholding tax relates to interest expense paidto its Subsidiary. On September 10, 2015, asrequired under the tax laws, the Company paidthe tax assessments and filed a formal objectionon November 5, 2015. The amount paid isrecorded as part of “Claims for Tax Refund” inthe consolidated statements of financialposition. As of the completion date of theconsolidated financial statements, no decisionletter has yet been issued by the DirectorGeneral of Tax.

Manajemen Perusahaan berkeyakinan bahwaPerusahaan memiliki dasar yang kuat atasposisinya dan bahwa Direktur Jenderal Pajakakan mendukung sesuai posisi Perusahaan,oleh karena itu, tidak ada provisi yang diakuiuntuk ketetapan pajak tersebut.

The Company’s management believes that theCompany has a solid basis for its position andthat the Director General of Tax will rule in itsfavor, accordingly, no provision has beenrecognized in the accounts for such taxassessments.

F-66

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

57

11. PERPAJAKAN (lanjutan) 11. TAXATION (continued)

g. Surat Ketetapan Pajak (lanjutan) g. Tax Assessment Letters (continued)

Pajak penghasilan pasal 26 tahun pajak 2011Perusahaan menerima Surat Ketetapan PajakNo. 00002/204/11/062/15 dan00003/204/11/062/15 tanggal 13 Agustus 2015dari Direktur Jenderal Pajak untuk kurang bayarpemotongan pajak penghasilan pasal 26masing-masing sebesar Rp37,52 miliar(AS$2.846.714) dan Rp35,37 miliar(AS$2.683.981) untuk tahun pajak 2011. Padatanggal 10 September 2015, seperti yangdiwajibkan di dalam undang-undang pajak,Perusahaan membayar ketetapan pajak danmengajukan surat keberatan resmi padatanggal 5 November 2015. Jumlah yangdibayarkan dicatat sebagai bagian dari "TagihanPajak" dalam laporan posisi keuangankonsolidasian. Sampai dengan tanggalpenyelesaian laporan keuangan konsolidasian,belum ada surat keputusan yang diterbitkanoleh Direktur Jenderal Pajak.

Income tax article 26 for fiscal year 2011

The Company received tax assessment lettersNo. 00002/204/11/062/15 and00003/204/11/062/15 dated August 13, 2015from the Director General of Tax forunderpayment of withholding incometax article 26 amounting to Rp37.52 billion(US$2,846,714) and Rp35.37 billion(US$2,683,981), respectively, for the fiscal year2011. On September 10, 2015, as requiredunder the tax laws, the Company paid the taxassessments and filed a formal objection onNovember 5, 2015. The amount paid isrecorded as part of “Claims for Tax Refund” inthe consolidated statements of financialposition. As of the completion date of theconsolidated financial statements, no decisionletter has yet been issued by the DirectorGeneral of Tax.

Manajemen Perusahaan berkeyakinan bahwaPerusahaan memiliki dasar yang kuat atasposisinya dan bahwa Direktur Jenderal Pajakakan mendukung sesuai posisi Perusahaan,oleh karena itu, tidak ada provisi yang diakuiuntuk ketetapan pajak tersebut.

The Company’s management believes that theCompany has a solid basis for its position andthat the Director General of Tax will rule in itsfavor, accordingly, no provision has beenrecognized in the accounts for such taxassessments.

Pajak penghasilan pasal 26 tahun pajak 2010Perusahaan menerima Surat Ketetapan PajakNo. 00003/204/10/062/15 tanggal 13 Juli 2015dari Direktur Jenderal Pajak untuk kurang bayarpemotongan pajak penghasilan pasal 26sebesar Rp37,50 miliar (AS$2.845.455) untuktahun pajak 2010. Pada tanggal 12 Agustus2015, seperti yang diwajibkan dalam undang-undang pajak, Perusahaan membayarketetapan pajak dan mengajukan suratkeberatan resmi pada tanggal 8 Oktober 2015.Jumlah yang dibayarkan dicatat sebagai bagiandari "Tagihan Pajak" dalam laporan posisikeuangan konsolidasian. Sampai dengantanggal penyelesaian laporan keuangankonsolidasian, belum ada surat keputusan yangditerbitkan oleh Direktur Jenderal Pajak.

Income tax article 26 for fiscal year 2010The Company received tax assessment letterNo. 00003/204/10/062/15 dated July 13, 2015from the Director General of Tax forunderpayment of withholding income taxarticle 26 amounting to Rp37.50 billion(US$2,845,455) for the fiscal year 2010. OnAugust 12, 2015, as required under the taxlaws, the Company paid the tax assessmentsand filed a formal objection on October 8, 2015.The amount paid is recorded as part of “Claimsfor Tax Refund” in the consolidated statementsof financial position. As of the completion dateof the consolidated financial statements, nodecision letter has yet been issued by theDirector General of Tax.

Manajemen Perusahaan berkeyakinan bahwaPerusahaan memiliki dasar yang kuat atasposisinya dan bahwa Direktur Jenderal Pajakakan mendukung sesuai posisi Perusahaan,oleh karena itu, tidak ada provisi yang diakuiuntuk ketetapan pajak tersebut.

The Company’s management believes that theCompany has a solid basis for its position andthat the Director General of Tax will rule in itsfavor, accordingly, no provision has beenrecognized in the accounts for such taxassessment.

F-67

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

58

11. PERPAJAKAN (lanjutan) 11. TAXATION (continued)

h. Pajak Dibayar Di muka h. Prepaid Tax

Berdasarkan Peraturan Menteri KeuanganNo. 191/PMK.010/2015 tanggal 20 Oktober2015, sebagaimana telah diubah denganPeraturan Menteri Keuangan No. 233/PMK.03/2015 tanggal 21 Desember 2015, perusahaan-perusahaan diperbolehkan untuk mengakuiselisih penilaian kembali aset tetap danmengklaim depresiasi atas selisih penilaiankembali sebagai beban yang dapat dikurangkanuntuk tujuan pajak setelah pembayaran pajaksebesar 3% (jika pembayaran dilakukan padatahun 2015) atau 4% (jika pembayarandilakukan antara tanggal 1 Januari 2016 sampaidengan 30 Juni 2016) atau 6% (jikapembayaran dilakukan antara tanggal 1 Juli2016 sampai dengan 31 Desember 2016) ataskenaikan penilaian aset. Sesuai denganperaturan di atas, Perusahaan mengajukanpermohonan untuk insentif pajak danmembayar sebesar Rp105,78 milyar(AS$7,63 juta) pada bulan Desember 2015, dandisajikan sebagai "Pajak Dibayar Di muka" padalaporan posisi keuangan konsolidasian padatanggal 31 Desember 2015. Perusahaanmenyerahkan laporan penilaian rinci atas asettetap Perusahaan pada tanggal 3 Februari2016.

Based on the Ministry of Finance RegulationNo. 191/PMK.010/2015 dated October 20,2015, as amended by the Ministry of FinanceRegulation No. 233/PMK.03/2015 datedDecember 21, 2015, companies are allowed torecognize revaluation increment on property,plant and equipment and claim thedepreciation from such revaluation incrementas a deductible expense for tax purposes afterthe payment of tax equivalent to 3% (ifpayment is made in 2015) or 4% (if payment ismade between January 1, 2016 to June 30,2016) or 6% (if payment is made betweenJuly 1, 2016 to December 31, 2016) of theappraisal increment of the assets. Pursuant tothe above regulation, the Company filed anapplication for the tax incentive and paidRp105.78 billion (US$7.63 million) inDecember 2015, which is presented as“Prepaid Tax” in the consolidated statement offinancial position as of December 31, 2015.The Company submitted the detailed appraisalreport on its property, plant and equipment onFebruary 3, 2016.

Berdasarkan Keputusan Direktur JenderalPajak No. KEP-418/WPJ.04/2016 tanggal29 Februari 2016, Direktur Jenderal Pajakmenyetujui permohonan Perusahaan untukmengakui selisih penilaian kembaliaset tetap untuk tujuan perpajakan sebesarRp3.533.380.476.363 (AS$263.783.537) efektiftanggal 1 Januari 2016. Dengan demikian,pajak dibayar di muka dibebankan untuk“Beban Pajak Final” pada laporan laba rugi danpenghasilan komprehensif lain konsolidasianperiode 2016.

Based on the decision of the Director Generalof Tax No. KEP-418/WPJ.04/2016 datedFebruary 29, 2016, the Director General of Taxapproved the application of the Company torecognize revaluation increment on property,plant and equipment for tax purposesamounting to Rp3,533,380,476,363(US$263,783,537) effective January 1, 2016.Accordingly, the prepaid tax recognized wascharged to “Final Tax Expense” in the 2016consolidated statement of profit or loss andother comprehensive income.

i. Administrasi i. Administration

Perusahaan menyampaikan pajak tahunanatas dasar perhitungan sendiri (”self-assessment”). Direktur Jenderal Pajak dapatmenetapkan dan mengubah liabilitas pajakdalam batas waktu sepuluh (10) tahun sejaktanggal terutangnya pajak, atau sampai denganakhir tahun 2013, mana yang lebih dahulu,untuk tahun-tahun pajak sebelum 2008.

The Company submits its tax returns on thebasis of self-assessment. The DirectorGeneral of Tax may assess or amend taxeswithin ten (10) years from the date the taxbecame due, or until the end of year 2013,whichever is earlier, for tax years prior to 2008.

F-68

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

59

11. PERPAJAKAN (lanjutan) 11. TAXATION (continued)

i. Administrasi (lanjutan) i. Administration (continued)

Berdasarkan peraturan pajak yang berlakumulai tahun 2008, Direktur Jenderal Pajakdapat menetapkan dan mengubah liabilitaspajak dalam batas waktu lima (5) tahun sejaktanggal terutangnya pajak.

Based on taxation laws which are applicablestarting in year 2008, the Director General ofTax may assess or amend taxes within five (5)years from the date the tax becomes due.

12. UTANG USAHA 12. TRADE PAYABLES

Pada tanggal 30 Juni 2016, akun ini terutamamerupakan liabilitas ke PT Perusahaan GasNegara (Persero) Tbk, PT Pertamina (Persero) danPT Gasindo Pratama Sejati, untuk pembelian gasdan PT AF Consult AB untuk jasa perawatan danlainnya.

As of June 30, 2016, this account mainlyrepresents liabilities to PT Perusahaan Gas Negara(Persero) Tbk, PT Pertamina (Persero) andPT Gasindo Pratama Sejati, for the purchase ofgas and PT AF Consult AB for maintenance andother services.

Pada tanggal 31 Desember 2015, 2014 dan 2013,akun ini terutama merupakan liabilitas kePT Perusahaan Gas Negara (Persero) Tbk,PT Pertamina (Persero), PT Gasindo PratamaSejati, dan PT Rabana Gasindo Makmur, untukpembelian gas dan Tekniko Singapore Pte Ltd,General Electric Energy Parts International LLC,PT ABB Sakti Industri dan PT Silkar National untukjasa perawatan dan lainnya.

As of December 31, 2015, 2014 and 2013,this account mainly represents liabilities toPT Perusahaan Gas Negara (Persero) Tbk,PT Pertamina (Persero), PT Gasindo PratamaSejati, and PT Rabana Gasindo Makmur, for thepurchase of gas and Tekniko Singapore Pte Ltd,General Electric Energy Parts International LLC,PT ABB Sakti Industri and PT Silkar National formaintenance and other services.

Utang usaha tidak dikenakan bunga dan umumnyamempunyai jangka waktu kredit 30 sampai 90 hari.

Trade payables are non-interest bearing andgenerally have credit terms of 30 to 90 days.

Rincian dari akun ini adalah sebagai berikut: The details of this account are as follows:

a. Berdasarkan Pemasok a. By Supplier

31 Desember/December 31,30 Juni 2016/June 30, 2016 2015 2014 2013

Pihak ketiga 36.445.658 38.156.073 25.765.737 20.255.214 Third partiesPihak berelasi 460.713 11.012 456.985 495.484 Related party

Jumlah 36.906.371 38.167.085 26.222.722 20.750.698 Total

b. Berdasarkan Umur b. By Aging Category31 Desember/December 31,

30 Juni 2016/June 30, 2016 2015 2014 2013

Sampai dengan 1 bulan 31.403.978 30.024.037 21.173.700 18.561.360 Up to 1 month1 - 3 bulan 1.429.167 1.157.128 2.931.905 400.357 1 - 3 months3 - 6 bulan 3.408.861 5.195.196 274.278 62.348 3 - 6 months6 bulan - 1 tahun 98.895 26.117 136.583 1.321.251 6 months - 1 yearLebih dari 1 tahun 565.470 1.764.607 1.706.256 405.382 More than 1 year

Jumlah 36.906.371 38.167.085 26.222.722 20.750.698 Total

F-69

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

60

12. UTANG USAHA (lanjutan) 12. TRADE PAYABLES (continued)

c. Berdasarkan Mata Uang c. By Currency31 Desember/December 31,

30 Juni 2016/June 30, 2016 2015 2014 2013

Dolar Amerika Serikat 29.223.029 33.318.161 20.241.334 16.730.865 United States DollarRupiah 5.292.446 4.569.257 4.115.187 3.816.044 RupiahLain-lain 2.390.896 279.667 1.866.201 203.789 Others

Jumlah 36.906.371 38.167.085 26.222.722 20.750.698 Total

13. BEBAN AKRUAL 13. ACCRUED EXPENSES

Beban akrual terdiri dari: Accrued expenses consist of:

31 Desember/December 31,30 Juni 2016/June 30, 2016 2015 2014 2013

Bunga 12.452.083 12.452.083 12.452.083 12.452.083 InterestBonus 3.143.840 - - - BonusBeban komitmen 960.349 982.804 899.819 817.092 Commitment feesHonorarium profesional 172.825 517.990 211.988 287.570 Professional feesLain-lain 2.279.831 510.369 314.356 314.329 Others

Jumlah 19.008.928 14.463.246 13.878.246 13.871.074 Total

14. IMBALAN KERJA 14. EMPLOYEE BENEFITS

Perusahaan telah memiliki program pensiun iuranpasti untuk seluruh karyawan tetapnya. Asetprogram pensiun dikelola oleh Dana PensiunLembaga Keuangan PT Bank Negara Indonesia(Persero) Tbk dan Dana Pensiun LembagaKeuangan Manulife Indonesia yang disetujui olehKementerian Keuangan dalam Surat Keputusannyamasing-masing No. KEP/301/KM.17/1993 danNo. KEP-331/KM.6/2004.

The Company has defined contribution pensionplans covering substantially all of its permanentemployees. The assets of the pension plans areadministered by Dana Pensiun LembagaKeuangan PT Bank Negara Indonesia (Persero)Tbk and Dana Pensiun Lembaga KeuanganManulife Indonesia as approved by the Ministry ofFinance in its Decision LettersNo. KEP/301/KM.17/1993 and No. KEP-331/KM.6/2004, respectively.

Berdasarkan program pensiun, Perusahaanmemberikan kontribusi 5% dari gaji pokokkaryawan. Kontribusi Perusahaan untuk programpensiun yang dibebankan pada operasi masing-masing sebesar AS$108.626, AS$133.555,AS$249.109, AS$241.580 dan AS$215.974 untukperiode enam bulan yang berakhir pada tanggal-tanggal 30 Juni 2016 dan 2015 dan tahun yangberakhir pada tanggal-tanggal 31 Desember 2015,2014 dan 2013.

Under the pension plans, the Company contributes5% of the employee’s basic salary. The Company’scontributions to the pension plans charged tooperations amounted to US$108,626, US$133,555,US$249,109, US$241,580 and US$215,974 for thesix-month periods ended June 30, 2016 and 2015and the years ended December 31, 2015, 2014and 2013, respectively.

F-70

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

61

14. IMBALAN KERJA (lanjutan) 14. EMPLOYEE BENEFITS (continued)

Selain itu, Perusahaan mengakui imbalan kerjayang berkaitan dengan penyelesaian pemutusan,gratifikasi dan manfaat kompensasi karyawan yangmemenuhi syarat dalam hal pemutusan hubungankerja yang asalkan kondisi tertentu terpenuhisebagaimana diatur dalam Undang-UndangNo. 13, dan manfaat jangka panjang lainnya untuktunjangan cuti panjang dan long-service awards.Estimasi biaya imbalan kerja berdasarkan laporanpenilaian aktuaria PT Milliman Indonesia tertanggal27 Juli 2016 pada tanggal 30 Juni 2016 dan untukperiode enam bulan yang berakhir pada tanggal-tanggal 30 Juni 2016 dan 2015, dan tertanggal29 Januari 2016 pada tanggal 31 Desember 2015,2014 dan 2013 dan untuk tahun yang berakhirpada tanggal-tanggal tersebut, denganmenggunakan metode projected unit credit.

In addition, the Company recognizes employeebenefits relating to the settlement of termination,gratuity and compensation benefits of qualifiedemployees in the event of employment terminationprovided certain conditions are met as set forth inLaw No. 13, and other long-term benefits for longleave allowance and long-service awards.The estimated employee benefits expenses arebased on the actuarial valuation reports ofPT Milliman Indonesia as of June 30, 2016 and forthe six month periods ended June 30, 2016 and2015 dated July 27, 2016, and as of December 31,2015, 2014 and 2013 and for the years then endeddated January 29, 2016, using the projected unitcredit method.

Tabel berikut ini merangkum komponen-komponenbeban neto imbalan kerja yang diakui dalamlaporan laba rugi dan penghasilan komprehensiflain konsolidasian dan jumlah estimasi liabilitasimbalan kerja yang diakui dalam laporan posisikeuangan konsolidasian:

The following tables summarize the components ofnet employee benefits expense recognized in theconsolidated statements of profit or loss and othercomprehensive income and the amounts ofestimated employee benefits liability recognized inthe consolidated statements of financial position:

a. Komponen-komponen beban imbalan kerjaadalah sebagai berikut:

a. The components of employee benefitsexpense are as follows:

30 Juni 2016/June 30, 2016 30 Juni 2015/June 30, 2015(Enam bulan/Six months) (Enam bulan/Six months)

Imbalan ImbalanJangka Jangka

Panjang Lain/ Panjang Lain/Other Other

UU No. 13/ Long-Term Jumlah/ UU No. 13/ Long-Term Jumlah/Law No. 13 Benefits Total Law No. 13 Benefits Total

Biaya jasa kini 560.118 291.956 852.074 750.025 314.709 1.064.734 Current service costBiaya bunga 889.091 107.857 996.948 697.283 87.635 784.918 Interest costKeuntungan aktuaria - (163.451) (163.451) - (163.669) (163.669) Actuarial gains

Beban imbalan kerja 1.449.209 236.362 1.685.571 1.447.308 238.675 1.685.983 Employee benefits expenseBiaya pemutusan

hubungan kerja 61.833 - 61.833 51.150 - 51.150 Termination benefits cost

Jumlah beban Total employee benefitsimbalan kerja 1.511.042 236.362 1.747.404 1.498.458 238.675 1.737.133 expense

F-71

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

62

14. IMBALAN KERJA (lanjutan) 14. EMPLOYEE BENEFITS (continued)

31 Desember 2015/December 31, 2015(Satu tahun/One year)

Imbalan Jangka

Panjang Lain/Other

UU No. 13/ Long-Term Jumlah/Law No. 13 Benefits Total

Biaya jasa kini 1.494.706 622.160 2.116.866 Current service costBiaya bunga 1.344.905 170.326 1.515.231 Interest costKerugian aktuaria - 35.587 35.587 Actuarial losses

Beban imbalan kerja 2.839.611 828.073 3.667.684 Employee benefits expenseBiaya pemutusan hubungan kerja 54.664 - 54.664 Termination benefits cost

Jumlah beban Total employee benefitsimbalan kerja 2.894.275 828.073 3.722.348 expense

31 Desember 2014/December 31, 2014 31 Desember 2013/December 31, 2013(Satu tahun/One year) (Satu tahun/One year)

Imbalan ImbalanJangka Jangka

Panjang Lain/ Panjang Lain/Other Other

UU No. 13/ Long-Term Jumlah/ UU No. 13/ Long-Term Jumlah/Law No. 13 Benefits Total Law No. 13 Benefits Total

Biaya jasa kini 901.338 532.363 1.433.701 1.332.279 382.654 1.714.933 Current service costBiaya jasa lalu - 1.613.018 1.613.018 - - - Past service costBiaya bunga 1.226.552 164.157 1.390.709 984.686 28.992 1.013.678 Interest costKerugian aktuaria - 217.025 217.025 - 18.938 18.938 Actuarial losses

Beban imbalan kerja 2.127.890 2.526.563 4.654.453 2.316.965 430.584 2.747.549 Employee benefits expenseBiaya pemutusan

hubungan kerja 16.126 - 16.126 573.104 - 573.104 Termination benefits cost

Jumlah beban Total employee benefitsimbalan kerja 2.144.016 2.526.563 4.670.579 2.890.069 430.584 3.320.653 expense

b. Rincian estimasi liabilitas imbalan kerja adalahsebagai berikut:

b. The details of estimated liability for employeebenefits are as follows:

30 Juni 2016/June 30, 2016 31 Desember 2015/December 31, 2015

Imbalan ImbalanJangka Jangka

Panjang Lain/ Panjang Lain/Other Other

UU No. 13/ Long-Term Jumlah/ UU No. 13/ Long-Term Jumlah/Law No. 13 Benefits Total Law No. 13 Benefits Total

Nilai kini liabilitas 21.320.895 2.404.747 23.725.642 19.792.501 2.829.754 22.622.255 Present value of obligationNilai wajar aset program - - - - - - Fair value of plan assets

Estimasi liabilitas Estimated liability forimbalan kerja 21.320.895 2.404.747 23.725.642 19.792.501 2.829.754 22.622.255 employee benefits

31 Desember 2014/December 31, 2014 31 Desember 2013/December 31, 2013

Imbalan ImbalanJangka Jangka

Panjang Lain/ Panjang Lain/Other Other

UU No. 13/ Long-Term Jumlah/ UU No. 13/ Long-Term Jumlah/Law No. 13 Benefits Total Law No. 13 Benefits Total

Nilai kini liabilitas 18.363.153 2.561.820 20.924.973 14.098.667 666.394 14.765.061 Present value of obligationNilai wajar aset program - - - - - - Fair value of plan assets

Estimasi liabilitas Estimated liability forimbalan kerja 18.363.153 2.561.820 20.924.973 14.098.667 666.394 14.765.061 employee benefits

F-72

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

63

14. IMBALAN KERJA (lanjutan) 14. EMPLOYEE BENEFITS (continued)

c. Mutasi saldo estimasi liabilitas imbalan kerjaadalah sebagai berikut:

c. The movements in the balance of estimatedliability for employee benefits are as follows:

30 Juni 2016/June 30, 2016 31 Desember 2015/December 31, 2015(Enam bulan/Six months) (Satu tahun/One year)

Imbalan ImbalanJangka Jangka

Panjang Lain/ Panjang Lain/Other Other

UU No. 13/ Long-Term Jumlah/ UU No. 13/ Long-Term Jumlah/Law No. 13 Benefits Total Law No. 13 Benefits Total

Saldo awal periode 19.792.501 2.829.754 22.622.255 18.363.153 2.561.820 20.924.973 Balance at beginning of periodBeban imbalan kerja Benefits expense

periode berjalan during the perioddibebankan ke laba rugi 1.449.209 236.362 1.685.571 2.839.611 828.073 3.667.684 charged to profit or loss

Kerugian Actuarial lossaktuaria yang diakui recognized assebagai penghasilan other comprehensivekomprehensif lain 320.784 - 320.784 983.645 - 983.645 income

Pembayaran imbalan kerja Benefits paymentsperiode berjalan (1.175.967) (783.447) (1.959.414) (492.915) (292.872) (785.787) during the period

Selisih kurs 934.368 122.078 1.056.446 (1.900.993) (267.267) (2.168.260) Exchange rate differences

Saldo akhir periode 21.320.895 2.404.747 23.725.642 19.792.501 2.829.754 22.622.255 Balance at end of period

31 Desember 2014/December 31, 2014 31 Desember 2013/December 31, 2013(Satu tahun/One year) (Satu tahun/One year)

Imbalan ImbalanJangka Jangka

Panjang Lain/ Panjang Lain/Other Other

UU No. 13/ Long-Term Jumlah/ UU No. 13/ Long-Term Jumlah/Law No. 13 Benefits Total Law No. 13 Benefits Total

Saldo awal tahun 14.098.667 666.394 14.765.061 16.923.439 878.708 17.802.147 Balance at beginning of yearBeban imbalan kerja Benefits expense

tahun berjalan during the yeardibebankan ke laba rugi 2.127.890 2.526.563 4.654.453 2.316.965 430.584 2.747.549 charged to profit or loss

Kerugian (keuntungan) Actuarial loss (gain)aktuaria yang diakui recognized assebagai penghasilan other comprehensivekomprehensif lain 2.711.097 - 2.711.097 (512.969) - (512.969) income

Pembayaran imbalan kerja Benefits paymentstahun berjalan (74.854) (527.424) (602.278) (1.019.478) (466.412) (1.485.890) during the year

Selisih kurs (499.647) (103.713) (603.360) (3.609.290) (176.486) (3.785.776) Exchange rate differences

Saldo akhir tahun 18.363.153 2.561.820 20.924.973 14.098.667 666.394 14.765.061 Balance at end of year

d. Analisis mutasi dari nilai kini liabilitas adalahsebagai berikut:

d. An analysis of the movements of the presentvalue of obligation is as follows:

30 Juni 2016/June 30, 2016 31 Desember 2015/December 31, 2015(Enam bulan/Six months) (Satu tahun/One year)

Imbalan ImbalanJangka Jangka

Panjang Lain/ Panjang Lain/Other Other

UU No. 13/ Long-Term Jumlah/ UU No. 13/ Long-Term Jumlah/Law No. 13 Benefits Total Law No. 13 Benefits Total

Nilai kini liabilitas Present value of obligationawal periode 19.792.501 2.829.754 22.622.255 18.363.153 2.561.820 20.924.973 at beginning of period

Biaya jasa kini 560.118 291.956 852.074 1.494.706 622.160 2.116.866 Current service costBeban bunga 889.091 107.857 996.948 1.344.905 170.326 1.515.231 Interest costPembayaran imbalan kerja (1.175.967) (783.447) (1.959.414) (492.915) (292.872) (785.787) Benefits paymentsKerugian (keuntungan)

aktuaria 320.784 (163.451) 157.333 983.645 35.587 1.019.232 Actuarial losses (gains)Selisih kurs 934.368 122.078 1.056.446 (1.900.993) (267.267) (2.168.260) Exchange rate differences

Saldo akhir periode 21.320.895 2.404.747 23.725.642 19.792.501 2.829.754 22.622.255 Balance at end of period

F-73

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

64

14. IMBALAN KERJA (lanjutan) 14. EMPLOYEE BENEFITS (continued)

31 Desember 2014/December 31, 2014 31 Desember 2013/December 31, 2013(Satu tahun/One year) (Satu tahun/One year)

Imbalan ImbalanJangka Jangka

Panjang Lain/ Panjang Lain/Other Other

UU No. 13/ Long-Term Jumlah/ UU No. 13/ Long-Term Jumlah/Law No. 13 Benefits Total Law No. 13 Benefits Total

Nilai kini liabilitas Present value of obligationawal tahun 14.098.667 666.394 14.765.061 16.923.439 878.708 17.802.147 at beginning of year

Biaya jasa kini 901.338 532.363 1.433.701 1.332.279 382.654 1.714.933 Current service costBiaya jasa lalu - 1.613.018 1.613.018 - - - Past service costBeban bunga 1.226.552 164.157 1.390.709 984.686 28.992 1.013.678 Interest costPembayaran imbalan kerja (74.854) (527.424) (602.278) (1.019.478) (466.412) (1.485.890) Benefits paymentsKerugian (Keuntungan)

aktuaria 2.711.097 217.025 2.928.122 (512.969) 18.938 (494.031) Actuarial losses (gains)Selisih kurs (499.647) (103.713) (603.360) (3.609.290) (176.486) (3.785.776) Exchange rate differences

Saldo akhir tahun 18.363.153 2.561.820 20.924.973 14.098.667 666.394 14.765.061 Balance at end of year

e. Pembayaran imbalan kerja yang diharapkanpada periode mendatang adalah sebagaiberikut:

e. The expected benefit payments in future yearsare as follows:

30 Juni 2016/ 31 Desember 2015/June 30, 2016 December 31, 2015

__________

Dalam 12 bulan mendatang 9.074.923 10.243.833 Within the next 12 monthsAntara 1 sampai 2 tahun 964.060 696.484 Between 1 and 2 yearsAntara 2 sampai 5 tahun 3.661.044 3.934.561 Between 2 and 5 yearsDiatas 5 tahun 102.892.339 93.609.048 Beyond 5 years

Durasi rata-rata dari kewajiban imbalan kerjapada tanggal 30 Juni 2016 dan 31 Desember2015 masing-masing sebesar 11,4 tahun dan10,4 tahun.

The average duration of the benefit obligationas of June 30, 2016 and December 31, 2015 is11.4 years and 10.4 years, respectively.

f. Analisis sensitivitas kuantitatif untuk asumsisignifikan pada tanggal 30 Juni 2016 dan31 Desember 2015 dicantumkan di bawah ini:

f. A quantitative sensitivity analysis for significantassumptions as of June 30, 2016 andDecember 31, 2015 is shown below:

30 Juni 2016/June 30, 2016

Tingkat diskonto/Discount rate Tingkat gaji masa depan/Future salary rate________________________ _________________________

Kenaikan 1%/ Penurunan 1%/ Kenaikan 1%/ Penurunan 1%/Increase by 1% Decrease by 1% Increase by 1% Decrease by 1%

Impact on definedPengaruh pada liabilitas benefits obligation -

imbalan pasti - naik (turun) (1.015.239) 1.159.224 1.306.033 (1.163.092) increase (decrease)

31 Desember 2015/December 31, 2015

Tingkat diskonto/Discount rate Tingkat gaji masa depan/Future salary rate________________________ _________________________

Kenaikan 1%/ Penurunan 1%/ Kenaikan 1%/ Penurunan 1%/Increase by 1% Decrease by 1% Increase by 1% Decrease by 1%

Impact on definedPengaruh pada liabilitas benefits obligation -

imbalan pasti - naik (turun) (796.936) 900.432 1.050.277 (944.359) increase (decrease)

F-74

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

65

14. IMBALAN KERJA (lanjutan) 14. EMPLOYEE BENEFITS (continued)

g. Asumsi utama yang digunakan dalammenentukan beban dan liabilitas imbalan kerjaadalah sebagai berikut:

g. The principal assumptions used in determiningemployee benefits expense and liabilities areas follows:

30 Juni/June 30, 31 Desember/December 31,

2016 2015 2015 2014 2013(Enam bulan/ (Enam bulan/ (Satu tahun/ (Satu tahun/ (Satu tahun/Six months) Six months) One year) One year) One year)

Tingkat diskonto - UU No.13 7.5% 8.5% 9% 8% 8% Discount rate - Law No.13 Tingkat diskonto -

imbalan jangka panjang Discount rate - otherlain 7% dan 7.5%/ 7.5% dan 8.5%/ 8.5% dan 9%/ 7% dan 8%/ 7% dan 8% long-term benefit

7% and 7,5% 7.5% and 8,5% 8,5% and 9% 7% and 8% 7% and 8%Kenaikan harga emas 7% 7% 7% 7% - Gold price increaseKenaikan tingkat gaji

tahunan 10% 10% 10% 10% 10% Annual salary rate increaseTingkat kematian TMI 2011 TMI 2011 TMI 2011 TMI 2011 TMI 2011 Mortality rateUmur pensiun 55 55 55 55 55 Retirement ageTingkat disabilitas 10% dari tingkat 10% dari tingkat 10% dari tingkat 10% dari tingkat 10% dari tingkat Disability rate

mortalitas/ mortalitas/ mortalitas/ mortalitas/ mortalitas/10% of the 10% of the 10% of the 10% of the 10% of the

mortality rate mortality rate mortality rate mortality rate mortality rateTingkat turnover 3% sampai dengan 3% sampai dengan 3% sampai dengan 3% sampai dengan 3% sampai dengan Turnover rate

untuk 25 tahun untuk 25 tahun untuk 25 tahun untuk 25 tahun untuk 25 tahundan menurun secara dan menurun secara dan menurun secara dan menurun secara dan menurun secara linear menjadi 1% linear menjadi 1% linear menjadi 1% linear menjadi 1% linear menjadi 1%pada umur 45 tahun pada umur 45 tahun pada umur 45 tahun pada umur 45 tahun pada umur 45 tahun

dan seterusnya/ dan seterusnya/ dan seterusnya/ dan seterusnya/ dan seterusnya/3% up to age 25 3% up to age 25 3% up to age 25 3% up to age 25 3% up to age 25

and reducing and reducing and reducing and reducing and reducinglinearly to be 1% linearly to be 1% linearly to be 1% linearly to be 1% linearly to be 1%

at age 45 at age 45 at age 45 at age 45 at age 45and thereafter and thereafter and thereafter and thereafter and thereafter

15. UTANG WESEL 15. NOTES PAYABLE

Akun ini merupakan Senior Notes dengan rinciansebagai berikut:

This account represents the Senior Notes withdetails as follows:

31 Desember/December 31,30 Juni 2016/June 30, 2016 2015 2014 2013

Pokok 500.000.000 500.000.000 500.000.000 500.000.000 PrincipalBiaya penerbitan yang

tidak diamortisasi (3.899.139) (4.557.197) (5.803.846) (6.963.305) Unamortized issuance costs

Jumlah 496.100.861 495.442.803 494.196.154 493.036.695 Total

Pada bulan Februari 2012, Listrindo Capital B.V.,entitas anak yang dimiliki secara penuh,menerbitkan Senior Notes 2019 (Notes 2019)dengan nilai pokok sebesar AS$500.000.000 yangmemiliki bunga 6,95% per tahun dan akan jatuhtempo pada tanggal 21 Februari 2019. Notes 2019dijamin oleh Perusahaan tanpa syarat dan tidakdapat ditarik kembali. Bunga tersebut terutang per6 bulan pada tanggal 21 Februari dan 21 Agustussetiap tahunnya dimulai pada tanggal 21 Agustus2012.

In February 2012, Listrindo Capital B.V., a wholly-owned subsidiary, issued Senior Notes 2019(Notes 2019) with principal amount ofUS$500,000,000 which bear interest at 6.95% perannum and will mature on February 21, 2019. TheNotes 2019 are unconditionally and irrevocablyguaranteed by the Company. The interest ispayable semi-annually on February 21 andAugust 21 of each year beginning on August 21,2012.

F-75

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

66

15. UTANG WESEL (lanjutan) 15. NOTES PAYABLE (continued)

Penerimaan neto dari penerbitan Notes 2019setelah dikurangi beban penawaran, digunakanuntuk menebus porsi substansial Senior Notesyang diterbitkan oleh Listrindo Capital B.V. padatahun 2010, membiayai ekspansi kapasitaspembangkit listrik Perusahaan dan untuk tujuanumum korporasi.

The net proceeds of the issuance of the Notes2019 after deducting offering expenses, were usedto redeem substantial portion of the Senior Notesissued by Listrindo Capital B.V. in 2010, to financethe electricity production capacity expansion plan ofthe Company and for general corporate purposes.

Sewaktu-waktu sebelum tanggal 21 Februari 2016,Listrindo Capital B.V. dapat menebus Notes 2019,seluruhnya atau sebagian, pada harga penebusansetara dengan 100% dari nilai pokok ditambahpremi yang berlaku pada, dan bunga akrual danbelum dibayar, jika ada, pada (tetapi tidaktermasuk), tanggal penebusan.

At any time prior to February 21, 2016, ListrindoCapital B.V. may redeem the Notes 2019, in wholeor in part, at the redemption price equal to 100% oftheir principal amount plus the applicable premiumas of, and accrued and unpaid interest, if any, to(but not including), the redemption date.

Sewaktu-waktu sebelum tanggal 21 Februari 2015,Listrindo Capital B.V. dapat menebus sampaidengan 35% dari nilai pokok agregat utang Notes2019 dengan penerimaan dari penawaran ekuitastertentu pada harga penebusan 106,95% dari nilaipokok Notes 2019, ditambah bunga akrual danbelum dibayar jika ada, pada tanggal penebusan;dengan syarat bahwa paling sedikit 65% dari nilaipokok agregat utang Notes 2019 yang diterbitkanpada tanggal terbit awal tetap beredar setelahterjadinya penebusan tersebut dan penebusanlainnya dalam waktu 60 hari penutupan penawaranekuitas tersebut.

At any time prior to February 21, 2015, ListrindoCapital B.V. may redeem up to 35% of theaggregate principal amount of the Notes 2019 withthe proceeds from certain equity offerings at aredemption price of 106.95% of the principalamount of the Notes 2019, plus accrued andunpaid interest, if any, to the redemption date;provided that at least 65% of the aggregateprincipal amount of the Notes 2019 originallyissued on the original issue date remainsoutstanding after each such redemption and anysuch redemption takes place within 60 days of theclosing of such equity offering.

Sewaktu-waktu pada atau setelah tanggal21 Februari 2016, Listrindo Capital B.V. dapatmenebus Senior Notes, seluruhnya atau sebagian,pada harga penebusan setara dengan 103,4750%,101,7375% dan 100,00% dari nilai pokok, ditambahbunga akrual dan belum dibayar, jika ada, padatanggal penebusan, bila ditebus selamaperiode dua belas (12) bulan dimulai padamasing-masing tanggal 21 Februari 2016,21 Februari 2017 dan 21 Februari 2018.

At any time on or after February 21, 2016, ListrindoCapital B.V. may redeem the Senior Notes, inwhole or in part, at a redemption price equal to103.4750%, 101.7375% and 100.00% of principalamount, plus accrued and unpaid interest, if any, tothe redemption date, if redeemed during the twelve(12) month period commencing on February 21,2016, February 21, 2017 and February 21, 2018,respectively.

Berdasarkan Surat Perjanjian Obligasi,Perusahaan diharuskan untuk menjaga rasiokemampuan membayar biaya tetap tidak kurangdari 2,5:1 (Catatan 30f), dan mematuhi kondisitertentu, antara lain: pembatasan atas utang dansaham preferen, pembayaran yang dibatasi,penjualan dan penerbitan saham biasa, dividendan pembatasan pembayaran lainnya, transaksidengan pemegang saham dan afiliasi, hak gadai,penjualan aset dan aktivitas bisnis.

Based on the Notes Indenture, the Company isrequired to maintain fixed charge coverage ratio ofnot less than 2.5:1 (Note 30f), and comply withcertain conditions, among others: limitations onindebtedness and preferred stock, restrictedpayments, sales and issuances of capital stock,dividend and other payment restrictions,transactions with shareholders and affiliates, liens,assets sales and business activities.

F-76

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

67

15. UTANG WESEL (lanjutan) 15. NOTES PAYABLE (continued)

16. JAMINAN PELANGGAN 16. CUSTOMERS’ DEPOSITS

Akun ini merupakan simpanan jaminan yang dapatdikembalikan yang diterima dari pelanggan untuktenaga listrik yang disediakan oleh Perusahaan.

This account represents refundable depositsreceived from customers for electric powerprovided by the Company.

17. EKUITAS 17. EQUITY

Modal saham Share capital

Pada tanggal 30 Juni 2016, para pemegang sahamdan kepemilikan saham masing-masing adalahsebagai berikut:

As of June 30, 2016, the shareholders and theirrespective share ownership are as follows:

Persentase Jumlah SahamKepemilikan/ Beredar/ Jumlah yang

Pemegang Saham/ Percentage of Number of Shares Dibayarkan/ Pemegang Saham/Shareholders Ownership Issued Amount Paid Shareholders

PT Udinda Wahanatama 30,92% 4.973.434.600 88.765.422 PT Udinda WahanatamaPT Pentakencana Pakarperdana 27,04 4.350.323.700 77.608.081 PT Pentakencana PakarperdanaPT Brasali Industri Pratama 27,04 4.350.323.700 77.184.821 PT Brasali Industri PratamaMasyarakat (dengan kepemilikan Public (with ownership interest

masing-masing dibawah 5%) 15,00 2.413.074.000 38.443.842 each below 5%)

Jumlah 100,00% 16.087.156.000 282.002.166 Total

Pada tanggal 31 Desember 2015, para pemegangsaham dan kepemilikan saham masing-masingadalah sebagai berikut:

As of December 31, 2015, the shareholders andtheir respective share ownership are as follows:

Persentase Jumlah SahamKepemilikan/ Beredar/ Jumlah yang

Pemegang Saham/ Percentage of Number of Shares Dibayarkan/ Pemegang Saham/Shareholders Ownership Issued Amount Paid Shareholders

PT Udinda Wahanatama 36,38% 5.266.060.000 93.988.175 PT Udinda WahanatamaPT Pentakencana Pakarperdana 31,81 4.606.190.000 82.172.636 PT Pentakencana PakarperdanaPT Brasali Industri Pratama 31,81 4.606.190.000 81.724.482 PT Brasali Industri Pratama

Jumlah 100,00% 14.478.440.000 257.885.293 Total

Berdasarkan laporan peringkat terbaru, obligasitersebut mendapat peringkat BB- dari Standard &Poor’s (“S&P”) (diterbitkan pada tanggal 6 Mei2016) dan peringkat Ba2 dari Moody’s InvestorsService (“Moody’s”) (diterbitkan pada tanggal12 April 2016).

Based on the latest rating reports, the notes haveBB- ratings from Standard & Poor’s (“S&P”)(released on May 6, 2016) and Ba2 ratings fromMoody’s Investors Service (“Moody’s”) (released onApril 12, 2016).

Notes 2019 terdaftar di Singapore ExchangeSecurities Trading Limited.

The Notes 2019 are listed in the SingaporeExchange Securities Trading Limited.

F-77

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

68

17. EKUITAS (lanjutan) 17. EQUITY (continued)

Modal saham (lanjutan) Share capital (continued)

Pada tanggal 31 Desember 2014 dan 2013, parapemegang saham dan kepemilikan saham masing-masing adalah sebagai berikut:

As of December 31, 2014 and 2013, theshareholders and their respective share ownershipare as follows:

Persentase Jumlah SahamKepemilikan/ Beredar/ Jumlah yang

Pemegang Saham/ Percentage of Number of Shares Dibayarkan/ Pemegang Saham/Shareholders Ownership Issued Amount Paid Shareholders

PT Udinda Wahanatama 36,38% 388.450 44.182.077 PT Udinda WahanatamaPT Pentakencana Pakarperdana 31,81 339.775 38.607.565 PT Pentakencana PakarperdanaPT Brasali Industri Pratama 31,81 339.775 38.159.411 PT Brasali Industri Pratama

Jumlah 100,00% 1.068.000 120.949.053 Total

Berdasarkan Akta Notaris Edward SuharjoWiryomartani, S.H., M.Kn. No. 23 tanggal14 Juni 2016, para pemegang saham setuju untukmeningkatkan modal ditempatkan dan disetorpenuh dari Rp2.895.688.000.000 (setara dengan14.478.440.000 lembar saham dengan nilainominal per saham sebesar Rp200) menjadiRp3.217.431.200.000 (setara dengan16.087.156.000 lembar saham dengan nilainominal per saham sebesar Rp200) melaluiPenawaran Umum Saham Perdana (IPO) sejumlah1.608.716.000 lembar saham dengan nilai nominalRp200 per saham. Perubahan Anggaran Dasardisetujui oleh Menteri Hukum dan HakAsasi Manusia dengan surat keputusannyaNo. AHU-0079627.AH.01.11.Tahun 2016 tanggal28 Juni 2016.

Based on Notarial Deed No. 23 of Edward SuharjoWiryomartani, S.H., M.Kn. dated June 14, 2016,the shareholders approved the increase in theissued and fully paid capital stock fromRp2,895,688,000,000 (equivalent to14,478,440,000 shares at Rp200 par value pershare) to Rp3,217,431,200,000 (equivalent to16,087,156,000 shares at Rp200 par value pershare) through Initial Public Offering (IPO) of1,608,716,000 shares at Rp200 par value pershare. These changes in the Articles of Associationwere approved by the Ministry of Law and HumanRights in its decision letter No. AHU-0079627.AH.01.11.Tahun 2016 dated June 28,2016.

Berdasarkan Akta Notaris Edward SuharjoWiryomartani, S.H., M.Kn. No. 65 tanggal18 November 2015, para pemegang sahammenyetujui perubahan nilai nominal per sahamatas saham Perusahaan dari nilai nominal persaham sebesar Rp1.000.000 menjadi nilai nominalper saham sebesar Rp200 yang mengakibatkanpeningkatan modal dasar dari 11.582.752 lembarsaham menjadi 57.913.760.000 lembar saham, danmeningkatkan modal ditempatkan dan disetorpenuh dari 2.895.688 lembar saham menjadi14.478.440.000 lembar saham. PerubahanAnggaran Dasar disetujui oleh Menteri Hukum danHak Asasi Manusia dengan surat keputusannyaNo. AHU-0946304.AH.01.02.Tahun 2015 tanggal19 November 2015.

Based on Notarial Deed No. 65 of EdwardSuharjo Wiryomartani, S.H., M.Kn. datedNovember 18, 2015, the shareholders approvedthe change in the par value per share of theCompany’s shares of stock from Rp1,000,000 parvalue per share to Rp200 par value per shareresulting in the increase in the authorized capitalstock from 11,582,752 shares to 57,913,760,000,and increase in the issued and fully paid capitalstock from 2,895,688 shares to 14,478,440,000shares. The change in the par valueper share was approved by the Ministry of Lawand Human Rights in its decision letterNo. AHU-0946304.AH.01.02 Tahun 2015 datedNovember 19, 2015.

F-78

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

69

17. EKUITAS (lanjutan) 17. EQUITY (continued)

Modal saham (lanjutan) Share capital (continued)

Berdasarkan Akta Notaris Edward SuharjoWiryomartani, S.H., M.Kn. No. 46 tanggal10 Juli 2015, para pemegang saham setuju untukmeningkatkan modal dasar Perusahaan dariRp1.068.000.000.000 (setara dengan 1.068.000lembar saham dengan nilai nominal per sahamsebesar Rp1.000.000) menjadiRp11.582.752.000.000 (setara dengan 11.582.752lembar saham dengan nilai nominal per sahamsebesar Rp1.000.000) dan meningkatkan modalditempatkan dan disetor penuh dariRp1.068.000.000.000 (setara dengan 1.068.000lembar saham dengan nilai nominalper saham sebesar Rp1.000.000) menjadiRp2.895.688.000.000 (setara dengan 2.895.688lembar saham dengan nilai nominal per sahamsebesar Rp1.000.000) melalui deklarasi dividensaham setara dengan Rp1.827.688.000.000(AS$136.936.240). Perubahan Anggaran Dasardisetujui oleh Menteri Hukum dan Hak AsasiManusia dengan surat keputusannyaNo. AHU-0939320.AH.01.02.Tahun 2015 tanggal13 Juli 2015.

Based on Notarial Deed No. 46 of Edward SuharjoWiryomartani, S.H., M.Kn. dated July 10, 2015, theshareholders approved the increase in theCompany’s authorized capital stock fromRp1,068,000,000,000 (equivalent to 1,068,000shares at Rp1,000,000 par value per share) toRp11,582,752,000,000 (equivalent to 11,582,752shares at Rp1,000,000 par value per share) andincrease in the subscribed and fully paid capitalfrom Rp1,068,000,000,000 (equivalent to1,068,000 shares at Rp1,000,000 par value pershare) to Rp2,895,688,000,000 (equivalent to2,895,688 shares at Rp1,000,000 par value pershare) through the declaration of stock dividendsequivalent to Rp1,827,688,000,000(US$136,936,240). These changes in the Articlesof Association were approved by the Ministry ofLaw and Human Rights in its decision letterNo. AHU-0939320.AH.01.02.Tahun 2015 datedJuly 13, 2015.

Berdasarkan Akta Notaris Edward SuharjoWiryomartani, S.H., M.Kn. No. 63 tanggal12 Desember 2012, para pemegang saham setujuuntuk meningkatkan modal dasar Perusahaan dariRp500.000.000.000 (setara dengan 500.000lembar saham dengan nilai nominal per sahamsebesar Rp1.000.000) menjadiRp1.068.000.000.000 (setara dengan 1.068.000lembar saham dengan nilai nominal per sahamsebesar Rp1.000.000) dan meningkatkan modalditempatkan dan disetor penuh dariRp438.500.000.000 (setara dengan 438.500lembar saham dengan nilai nominalper saham sebesar Rp1.000.000) menjadiRp1.068.000.000.000 (setara dengan 1.068.000lembar saham dengan nilai nominal per sahamsebesar Rp1.000.000) melalui deklarasi dividensaham setara dengan AS$65.111.816. PerubahanAnggaran Dasar disetujui oleh Menteri Hukum danHak Asasi Manusia dengan surat keputusannyaNo. AHU-03897.AH.01.02.Tahun 2013 tanggal1 Februari 2013.

Based on Notarial Deed No. 63 of Edward SuharjoWiryomartani, S.H., M.Kn. dated December 12,2012, the shareholders approved the increase inthe Company’s authorized capital stock fromRp500,000,000,000 (equivalent to 500,000 sharesat Rp1,000,000 par value per share) toRp1,068,000,000,000 (equivalent to 1,068,000shares at Rp1,000,000 par value per share) andincrease in the subscribed and fully paid capitalfrom Rp438,500,000,000 (equivalent to 438,500shares at Rp1,000,000 par value per share) toRp1,068,000,000,000 (equivalent to 1,068,000shares at Rp1,000,000 par value per share)through the declaration of stock dividendsequivalent to US$65,111,816. These changes inthe Articles of Association were approved by theMinistry of Law and Human Rights in its decisionletter No. AHU-03897.AH.01.02.Tahun 2013 datedFebruary 1, 2013.

F-79

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

70

17. EKUITAS (lanjutan) 17. EQUITY (continued)

Perubahan nilai wajar investasi tersedia untukdijual

Changes in fair value of available-for-saleinvestments

Hal ini merupakan perubahan nilai wajar dariinvestasi tersedia untuk dijual (Catatan 7).

This represents fair value changes of available-for-sale investments (Note 7).

Dividen Dividends

Pada tanggal 9 Desember 2015, para PemegangSaham menyetujui pembagian dividen tunaisebesar AS$5.000.000 (AS$0,00035 per saham),kepada seluruh pemegang saham pada tanggaltersebut dari saldo laba Perusahaan.

On December 9, 2015, the shareholders declaredcash dividends amounting to US$5,000,000(US$0.00035 per share) to all shareholders as ofthat date out of the Company’s retained earnings.

Pada tanggal 18 Oktober 2014, para PemegangSaham menyetujui pembagian dividen tunaisebesar AS$30.000.000 (AS$28,09 per saham),kepada seluruh pemegang saham pada tanggaltersebut dari saldo laba Perusahaan.

On October 18, 2014, the shareholders declaredcash dividends amounting to US$30,000,000(US$28.09 per share) to all shareholders as of thatdate out of the Company’s retained earnings.

Pada tanggal 16 April 2014, para PemegangSaham menyetujui pembagian dividen tunaisebesar Rp138.000.000.000 (Rp129.213 persaham) atau setara dengan AS$12.083.190(AS$11,31 per saham), kepada seluruh pemegangsaham pada tanggal tersebut dari saldo labaPerusahaan.

On April 16, 2014, the shareholders declared cashdividends amounting to Rp138,000,000,000(Rp129,213 per share) or equivalent toUS$12,083,190 (US$11.31 per share) to allshareholders as of that date out of the Company’sretained earnings.

Pada tanggal 18 November 2013, para PemegangSaham menyetujui pembagian dividen tunaisebesar Rp200.000.000.000 (Rp187.266 persaham) atau setara dengan AS$16.999.817(AS$15,92 per saham), kepada seluruh pemegangsaham pada tanggal tersebut dari saldo labaPerusahaan.

On November 18, 2013, the shareholders declaredcash dividends amounting to Rp200,000,000,000(Rp187,266 per share) or equivalent toUS$16,999,817 (US$15.92 per share) to allshareholders as of that date out of the Company'sretained earnings.

Pada tanggal 6 Mei 2013, para Pemegang Sahammenyetujui pembagian dividen tunai sebesarAS$19.000.000 (AS$17,79 per saham), kepadaseluruh pemegang saham pada tanggal tersebutdari saldo laba Perusahaan.

On May 6, 2013, the shareholders declared cashdividends amounting to US$19,000,000 (US$17.79per share) to all shareholders as of that date out ofthe Company’s retained earnings.

F-80

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

71

18. TAMBAHAN MODAL DISETOR 18. ADDITIONAL PAID-IN CAPITAL

Akun ini merupakan selisih antara nilai nominalsaham yang diterbitkan dalam rangka IPO padabulan Juni 2016 dengan hasil yang diterima,setelah dikurangi biaya penerbitan saham sebesarAS$7.911.637.

This account represents the difference between thetotal par value of new shares issued in connectionwith the IPO conducted in June 2016 and therelated proceeds, after netting off the shareissuance costs amounting to US$7,911,637.

19. TRANSAKSI DAN SALDO DENGAN PIHAK-PIHAK BERELASI

19. TRANSACTIONS AND BALANCES WITHRELATED PARTIES

Sifat hubungan dengan pihak-pihak berelasi adalahsebagai berikut:

The nature of relationships with the related partiesis as follows:

Pihak-pihak berelasi/ Sifat hubungan/ Jenis transaksi/Related parties Nature of relationship Nature of transactions

PT Gasindo Pratama Sejati Pihak berelasi lainnya/ Fasilitas transportasi energi gas/Other related party Gas energy transportation facility

PT Budimulia Penta Realti Pihak berelasi lainnya/ Pembelian ruang kantor/Other related party Purchase of office space

Rincian saldo dan transaksi-transaksi denganpihak-pihak berelasi adalah sebagai berikut:

The details of the balances and transactions withrelated parties are as follows:

30 Juni/June 30, 31 Desember/December 31,

2016 2015 2015 2014 2013(Enam bulan/ (Enam bulan/ (Satu tahun/ (Satu tahun/ (Satu tahun/Six months) Six months) One year) One year) One year)

Beban Pokok Penjualan Cost of SalesPihak berelasi lainnya Other related party

PT Gasindo Pratama Sejati 5.267.728 2.760.428 2.844.396 5.212.572 5.080.650 PT Gasindo Pratama Sejati

Persentase beban pokok penjualan Percentage of cost of salesdari pihak berelasi dengan jumlah involving related partybeban pokok penjualan 2,9% 1,5% 0,8% 1,4% 1,4% to total cost of sales

31 Desember/December 31,30 Juni 2016/June 30, 2016 2015 2014 2013

Aset AssetsUang muka pembelian Advances for purchase of

properti propertyPihak berelasi lainnya Other related party

PT Budimulia Penta Realti 10.991.750 9.992.500 6.035.500 2.078.500 PT Budimulia Penta Realti

Persentase aset Percentage of assetsdari pihak berelasi dengan involving related partyjumlah aset 0,9% 1,0% 0,7% 0,2% to total assets

Liabilitas LiabilitiesUtang usaha Trade payablesPihak berelasi lainnya Other related party

PT Gasindo Pratama Sejati 460.713 11.012 456.985 495.484 PT Gasindo Pratama Sejati

Persentase liabilitas Percentage of liabilitiesdari pihak berelasi dengan involving related partyjumlah liabilitas 0,07% 0,0016% 0,07% 0,08% to total liabilities

F-81

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

72

19. TRANSAKSI DAN SALDO DENGAN PIHAK-PIHAK BERELASI (lanjutan)

19. TRANSACTIONS AND BALANCES WITHRELATED PARTIES (continued)

Dalam kegiatan normal usaha, Perusahaanmelakukan transaksi dengan pihak berelasi karenahubungan kepemilikan dan/atau kepengurusan.Semua transaksi dengan pihak-pihak berelasi telahdilakukan dengan kebijakan dan syarat yang telahdisepakati bersama.

In the normal course of business, the Companyenters into certain transactions with parties that arerelated to the management and/or entities ownedby the same ultimate shareholder. All transactionswith related parties had been made on the basis ofagreed terms and conditions.

Semua akun dan transaksi antar perusahaan yangmaterial, termasuk keuntungan atau kerugian yangbelum direalisasi, jika ada, dieliminasi untukmencerminkan posisi keuangan konsolidasian dankinerja keuangan Perusahaan dan Entitas Anaksebagai satu kesatuan usaha.

All material intercompany accounts andtransactions, including unrealized gains or losses,if any, are eliminated to reflect the consolidatedfinancial position and financial performance of theCompany and Subsidiaries as one business entity.

Gaji dan remunerasi lainnya dari personilmanajemen kunci dan Komisaris Perusahaanadalah sebagai berikut:

Salaries and other remuneration of the keymanagement personnel and remuneration of theCommissioners of the Company are as follows:

30 Juni/June 30, 31 Desember/December 31,

2016 2015 2015 2014 2013(Enam bulan/ (Enam bulan/ (Satu tahun/ (Satu tahun/ (Satu tahun/Six months) Six months) One year) One year) One year)

Gaji dan imbalan kerja Salaries and other short-termjangka pendek 8.798.841 6.965.963 24.145.895 18.961.485 18.348.044 employee benefits

Manfaat pensiun dan manfaat Pension benefits and otherjangka panjang lainnya 2.461.927 1.002.366 2.023.796 2.526.485 2.343.284 long-term benefits

Jumlah 11.260.768 7.968.329 26.169.691 21.487.970 20.691.328 Total

Tidak ada kompensasi kepada manajemen kuncidan Komisaris yang diklasifikasikan sebagaipesangon pemutusan kontrak kerja danpembayaran berbasis saham.

There is no compensation to key management andCommissioners classified as termination benefitsand share-based payments.

20. PENJUALAN NETO 20. NET SALES

Rincian penjualan neto kepada pihak ketigaberdasarkan jenis adalah sebagai berikut:

The details of sales to third parties based on typeare as follows:

30 Juni/June 30, 31 Desember/December 31,

2016 2015 2015 2014 2013(Enam bulan/ (Enam bulan/ (Satu tahun/ (Satu tahun/ (Satu tahun/Six months) Six months) One year) One year) One year)

Produk ProductsListrik 273.289.190 268.619.438 544.496.955 539.598.197 497.128.851 Electricity usagePenyambungan 1.378.986 1.960.828 3.398.084 5.109.994 4.648.358 Connection charges

Jumlah 274.668.176 270.580.266 547.895.039 544.708.191 501.777.209 Total

F-82

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

73

20. PENJUALAN NETO (lanjutan) 20. NET SALES (continued)

Pelanggan individual dengan nilai penjualan netomelebihi 10% dari jumlah penjualan neto adalahPT PLN (Persero) dengan nilai masing-masingsebesar AS$74.486.872 (27% dari jumlahpenjualan neto), AS$84.184.727 (31% dari jumlahpenjualan neto), AS$166.084.433 (30% dari jumlahpenjualan neto), AS$161.241.564 (30% dari jumlahpenjualan neto) dan AS$144.163.925 (29% darijumlah penjualan neto) untuk periode enam bulanyang berakhir pada tanggal-tanggal 30 Juni 2016dan 2015 dan tahun yang berakhir pada tanggal-tanggal 31 Desember 2015, 2014 dan 2013(Catatan 27a).

The individual customer with more than 10% of theCompany’s total net sales is PT PLN (Persero) inthe amount of US$74,486,872 (27% of total netsales), US$84,184,727 (31% of total net sales),US$166,084,433 (30% of total net sales),US$161,241,564 (30% of total net sales) andUS$144,163,925 (29% of total net sales) for thesix-month periods ended June 30, 2016 and 2015and the years ended December 31, 2015, 2014and 2013, respectively (Note 27a).

21. BEBAN POKOK PENJUALAN 21. COST OF SALES

Rincian beban pokok penjualan adalah sebagaiberikut:

The details of cost of sales are as follows:

30 Juni/June 30, 31 Desember/December 31,

2016 2015 2015 2014 2013(Enam bulan/ (Enam bulan/ (Satu tahun/ (Satu tahun/ (Satu tahun/Six months) Six months) One year) One year) One year)

Biaya Langsung Direct CostGas bumi 153.169.315 153.645.264 305.856.862 303.787.340 296.935.103 Natural gasSuku cadang 1.540.762 1.619.794 4.981.889 4.272.341 4.486.895 Spare partsTenaga kerja langsung 600.831 451.172 894.653 817.196 768.695 Direct laborSolar 66.877 55.590 170.557 164.224 327.935 Diesel fuel

Jumlah biaya langsung 155.377.785 155.771.820 311.903.961 309.041.101 302.518.628 Total direct cost

Biaya Tidak Langsung Indirect CostPenyusutan (Catatan 9) 19.319.367 20.191.854 40.259.555 40.849.559 41.920.567 Depreciation (Note 9)Gaji dan imbalan kerja 3.773.375 2.709.053 5.734.256 5.234.576 5.120.144 Salaries and employee benefitsPerbaikan dan perawatan 2.080.320 960.678 2.790.469 2.601.307 2.629.292 Repairs and maintenanceAsuransi 534.900 480.523 1.008.271 910.363 902.117 InsuranceBeban kantor lain dan umum 311.462 201.762 521.356 470.185 498.573 Other office and general expensesRugi penurunan

nilai persediaan (Catatan 5) 183.446 191.787 137.096 89.435 312.584 Inventory loss (Note 5)Biaya angkut 23.087 45.503 93.580 48.934 179.172 Freight charges

Jumlah biaya tidak langsung 26.225.957 24.781.160 50.544.583 50.204.359 51.562.449 Total indirect cost

Jumlah beban pokok penjualan 181.603.742 180.552.980 362.448.544 359.245.460 354.081.077 Total cost of sales

F-83

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

74

21. BEBAN POKOK PENJUALAN (lanjutan) 21. COST OF SALES (continued)

Rincian pemasok individual yang melebihi 10% darijumlah penjualan neto adalah sebagai berikut:

The details of individual suppliers with more than10% of the Company’s total net sales are asfollows:

Beban pokok penjualan/Cost of sales

30 Juni/June 30, 31 Desember/December 31,

2016 2015 2015 2014 2013(Enam bulan/ (Enam bulan/ (Satu tahun/ (Satu tahun/ (Satu tahun/Six months) Six months) One year) One year) One year)

Pihak ketiga Third partiesPT Perusahaan Gas Negara PT Perusahaan Gas Negara

(Persero) Tbk 76.846.661 89.312.916 168.126.995 180.319.373 171.185.600 (Persero) TbkPT Pertamina (Persero) 68.407.702 55.645.457 123.413.741 102.292.713 103.318.765 PT Pertamina (Persero)

Jumlah 145.254.363 144.958.373 291.540.736 282.612.086 274.504.365 Total

Persentase dari jumlah penjualan neto/Percentage of total net sales

30 Juni/June 30, 31 Desember/December 31,

2016 2015 2015 2014 2013(Enam bulan/ (Enam bulan/ (Satu tahun/ (Satu tahun/ (Satu tahun/Six months) Six months) One year) One year) One year)

Pihak ketiga Third partiesPT Perusahaan Gas Negara PT Perusahaan Gas Negara

(Persero) Tbk 28% 33% 31% 33% 34% (Persero) TbkPT Pertamina (Persero) 25% 21% 23% 19% 21% PT Pertamina (Persero)

Jumlah 53% 54% 54% 52% 55% Total

Tidak ada pemasok pihak berelasi dengan nilaipembelian melebihi 10% dari jumlah penjualanneto Perusahaan untuk periode enam bulan yangberakhir pada tanggal-tanggal 30 Juni 2016 dan2015 dan tahun yang berakhir pada tanggal-tanggal 31 Desember 2015, 2014 dan 2013.

There is no related party supplier from whichpurchases exceeded 10% of the Company’s totalnet sales for the six-month periods ended June 30,2016 and 2015 and the years ended December 31,2015, 2014 and 2013.

22. BEBAN UMUM DAN ADMINISTRASI 22. GENERAL AND ADMINISTRATIVE EXPENSES

Rincian beban umum dan administrasi adalahsebagai berikut:

The details of general and administrative expensesare as follows:

30 Juni/June 30, 31 Desember/December 31,

2016 2015 2015 2014 2013(Enam bulan/ (Enam bulan/ (Satu tahun/ (Satu tahun/ (Satu tahun/Six months) Six months) One year) One year) One year)

Gaji dan imbalan kerja 17.462.430 13.754.693 28.215.912 28.864.781 23.451.966 Salaries and employee benefitsBeban kantor lain dan umum 2.201.675 2.125.199 5.161.931 6.125.105 3.269.945 Office and general expensesHonorarium profesional 1.135.644 823.152 2.504.882 1.916.870 1.086.614 Professional feesPenyusutan (Catatan 9) 510.838 370.042 855.956 532.553 438.203 Depreciation (Note 9)Penurunan nilai atas piutang Impairment loss on receivables

(Catatan 4) 140.984 890.674 1.045.448 472.775 866.553 (Note 4)Perbaikan dan perawatan 92.333 120.582 214.710 171.935 155.282 Repairs and maintenance

Jumlah beban umum dan Total general andadministrasi 21.543.904 18.084.342 37.998.839 38.084.019 29.268.563 administrative expenses

F-84

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

75

23. BEBAN PENJUALAN 23. SELLING EXPENSES

Rincian beban penjualan adalah sebagai berikut: The details of selling expenses are as follows:

30 Juni/June 30, 31 Desember/December 31,

2016 2015 2015 2014 2013(Enam bulan/ (Enam bulan/ (Satu tahun/ (Satu tahun/ (Satu tahun/Six months) Six months) One year) One year) One year)

Beban komitmen 1.614.810 1.522.065 3.131.253 3.159.285 3.023.046 Commitment feesGaji dan imbalan kerja 355.147 285.259 698.466 725.202 625.326 Salaries and employee benefitsRepresentasi dan jamuan 70.246 28.036 81.846 106.675 232.773 Representation and entertainmentBiaya promosi 49.055 41.160 114.963 159.667 245.800 PromotionsPenyusutan (Catatan 9) 45.340 33.969 79.144 39.958 42.114 Depreciation (Note 9)Lain-lain 67.827 37.639 119.421 109.324 112.609 Others

Jumlah beban penjualan 2.202.425 1.948.128 4.225.093 4.300.111 4.281.668 Total selling expenses

24. PENDAPATAN LAIN-LAIN 24. OTHER INCOME

Rincian pendapatan lain-lain adalah sebagaiberikut:

The details of other income are as follows:

30 Juni/June 30, 31 Desember/December 31,

2016 2015 2015 2014 2013(Enam bulan/ (Enam bulan/ (Satu tahun/ (Satu tahun/ (Satu tahun/Six months) Six months) One year) One year) One year)

Pendapatan denda 264.254 360.685 311.865 422.308 371.037 Penalty incomeKeuntungan penjualan peralatan 10.580 95.038 163.983 94.088 62.267 Gain on sale of equipmentKeuntungan penjualan investasi - - - 532.610 - Gain on sale of investmentsPembalikan akrual - - - - 436.480 Reversal of accrualsLain-lain - - - - 86.532 Others

Jumlah pendapatan lain-lain 274.834 455.723 475.848 1.049.006 956.316 Total other income

25. BEBAN LAIN-LAIN 25. OTHER EXPENSES

Rincian beban lain-lain adalah sebagai berikut: The details of other expenses are as follows:

30 Juni/June 30, 31 Desember/December 31,

2016 2015 2015 2014 2013(Enam bulan/ (Enam bulan/ (Satu tahun/ (Satu tahun/ (Satu tahun/Six months) Six months) One year) One year) One year)

Rugi selisih kurs, neto 994.471 7.474.252 10.574.384 6.899.062 24.288.930 Loss on foreign exchange, net Denda pajak - 152.510 1.518.835 - - Tax penaltiesRugi penjualan investasi - 6.395 6.395 - 294.699 Loss on sale of investmentsLain-lain 28.120 6.016 27.294 58.481 41.202 Others

Jumlah beban lain-lain 1.022.591 7.639.173 12.126.908 6.957.543 24.624.831 Total other expenses

26. BEBAN PENDANAAN 26. FINANCE COSTS

Rincian beban pendanaan adalah sebagai berikut: The details of finance costs are as follows:

30 Juni/June 30, 31 Desember/December 31,

2016 2015 2015 2014 2013(Enam bulan/ (Enam bulan/ (Satu tahun/ (Satu tahun/ (Satu tahun/Six months) Six months) One year) One year) One year)

Beban bunga 8.021.140 9.526.393 24.179.709 29.023.925 32.279.794 Interest expenseBeban pendanaan lainnya 412.729 296.969 661.910 472.744 1.551.975 Other financing costs

Jumlah beban pendanaan 8.433.869 9.823.362 24.841.619 29.496.669 33.831.769 Total finance costs

F-85

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

76

27. PERJANJIAN DAN IKATAN YANG SIGNIFIKAN 27. SIGNIFICANT AGREEMENTS ANDCOMMITMENTS

a. Berdasarkan perjanjian antara Perusahaan danPLN, kedua pihak telah menyepakatipembangkitan bulanan tenaga listrik minimum(kuantitas kontrak), dimana PLN diwajibkanuntuk menerbitkan instruksi pengiriman untukmencapai kuantitas kontrak dan Perusahaandiwajibkan untuk mengirimkan daya listriksesuai dengan instruksi pengiriman PLN hinggamencapai kuantitas kontrak. Namun, PLNmungkin memerlukan pengiriman tenaga listriklebih tinggi dari jumlah kontrak secara bulanandan Perusahaan akan berusaha sebaik-baiknyauntuk mengirimkan semua tenaga listrik yangdiminta oleh PLN.

a. Under the existing agreement between theCompany and PLN, both parties have agreedto a minimum monthly generation of electricpower (contract quantities), whereby PLN isobligated to issue dispatch instructions toachieve the contract quantities and theCompany is obligated to deliver electric powerpursuant to PLN’s dispatch instructions up tothe contract quantities. However, PLN mayrequire dispatch of electric power higher thanthe contract quantities on a monthly basis andthe Company shall use its best efforts todeliver all electric power requested by PLN.

Kuantitas kontrak dapat berubah dari waktu kewaktu melalui perjanjian bersama antaraPerusahaan dan PLN. Tagihan danpembayaran bulanan tenaga listrik didasarkanpada daya listrik aktual dan perhitungan tagihanyang tertera dalam Amandemen Perjanjian JualBeli Tenaga Listrik (PJBTL). Pada akhir tahun,pembayaran tenaga listrik dihitung secaratahunan dimana jumlah yang dihitung akandibandingkan dengan jumlah tagihan aktualbulanan oleh Perusahaan selama tahunberjalan untuk menentukan pembayaran yangterutang kepada Perusahaan atau PLN padaakhir tahun.

The contract quantities may change from timeto time by mutual agreement between theCompany and PLN. The monthly invoices andpayments of electric power shall be based onthe actual electric power delivered and thebilling calculation described in the AmendmentAgreement to the Electricity Power Sales andPurchase Agreement (EPSPA). At the end ofthe year, the payment on the electric powerdelivered shall be calculated on an annualbasis whereby the amount computed shall becompared to the actual amount invoicedmonthly by the Company during the applicableyear to arrive at any payments still due to theCompany or to PLN by the end of the year.

Pada tanggal 8 Maret 2011, Perusahaan danPLN mengadakan Perubahan Perjanjian atasPJBTL, dimana PLN bersedia untuk membelitambahan 150 MW tenaga listrik untukmeningkatkan kapasitasnya menjadi 300 MW,dimana 150 MW berlaku sampai 26 Januari2016 dan 150 MW berlaku sampai 1 Juni 2031.Perubahan perjanjian ini berlaku efektif daritanggal 1 Juni 2011 sampai 1 Juni 2031 danmenetapkan kenaikan harga tenaga listrik dariRp496 per KWh menjadi Rp709 per KWh.

On March 8, 2011, the Company and PLNentered into an Amendment Agreement to theEPSPA, whereby PLN commits to purchaseadditional 150 MW of electric power toincrease its capacity to 300 MW, in which 150MW is effective until January 26, 2016 and150 MW is effective until June 1, 2031. Theamended agreement is effective from June 1,2011 until June 1, 2031 and provides for theincrease in the price of electric power fromRp496 per KWh to Rp709 per KWh.

Pada tanggal 26 Januari 2016, Perusahaan danPLN mengadakan perpanjangan PJBTL ataskapasitas awal sebesar 150 MW sampaidengan 26 Januari 2019.

On January 26, 2016, the Company and PLNentered into an extension of EPSPA on theinitial capacity of 150 MW until January 26,2019.

F-86

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

77

27. PERJANJIAN DAN IKATAN YANG SIGNIFIKAN(lanjutan)

27. SIGNIFICANT AGREEMENTS ANDCOMMITMENTS (continued)

Penjualan berdasarkan perjanjian inimasing-masing sebesar AS$74.486.872,AS$84.184.727, AS$166.084.433,AS$161.241.564 dan AS$144.163.925 untukperiode enam bulan yang berakhir padatanggal-tanggal 30 Juni 2016 dan 2015 dantahun yang berakhir pada tanggal-tanggal31 Desember 2015, 2014 dan 2013. Saldopiutang yang timbul dari transaksi ini masing-masing sebesar AS$24.666.017,AS$32.259.040, AS$26.981.608 danAS$26.992.324 pada tanggal 30 Juni 2016 dantanggal 31 Desember 2015, 2014 dan 2013,dan termasuk dalam “Piutang Usaha” padalaporan posisi keuangan konsolidasian.

Sales under the agreements amountedto US$74,486,872, US$84,184,727,US$166,084,433, US$161,241,564 andUS$144,163,925 for the six-month periodsended June 30, 2016 and 2015 and the yearsended December 31, 2015, 2014 and 2013,respectively. The balances of the relatedreceivables arising from these transactionsamounted to US$24,666,017, US$32,259,040,US$26,981,608 and US$26,992,324 as ofJune 30, 2016 and December 31, 2015, 2014and 2013, respectively, and are included in“Trade Receivables” in the consolidatedstatements of financial position.

b. Pada tanggal 30 Juli 2012, Perusahaan danPertamina mengadakan Perjanjian Jual Belibaru atas penyediaan gas bumi untukmengubah perjanjian pada tanggal 21 Mei1993, 18 Agustus 1994 dan 29 Desember 2006.Berdasarkan perubahan perjanjian, Pertaminabersedia untuk menyediakan gas bumi untukPerusahaan dengan harga AS$6,18 perMMBTU ketika Jumlah Penyerahan Harian(JPH) setara dengan atau dibawah 40MMSCFD, dan AS$6,83 per MMBTU ketikaJPH diatas 40 MMSCFD. Perubahan perjanjianini berlaku efektif sejak tanggal 1 September2012 sampai Desember 2015 atau ketikapenyaluran gas mencapai 394.113 MMSCFD.

b. On July 30, 2012, the Company andPertamina entered into a AmendmentAgreement of Gas Price for the supply ofnatural gas to amend the agreements enteredinto on May 21, 1993, August 18, 1994 andDecember 29, 2006. Under the amendedagreement, Pertamina commits to supplynatural gas to the Company at a price ofUS$6.18 per MMBTU when the Total DailySupply (Jumlah Penyerahan Harian (JPH)) isequal to or below 40 MMSCFD, and US$6.83per MMBTU when JPH is above 40 MMSCFD.The amended agreement is effective startingSeptember 1, 2012 until December 2015 orwhen the supply of natural gas has reached394,113 MMSCFD.

Perubahan perjanjian juga menyajikankenaikan harga gas bumi sebesar 3% per tahundi setiap bulan September. Pada tanggal24 Juni 2015, Perusahaan dan Pertaminamenandatangani perjanjian untuk mengubahharga gas menjadi AS$6,73 per MMBTU untukpasokan listrik ke kawasan industri danAS$4,37 per MMBTU untuk pasokan listrik kePLN, yang masing-masing berlaku efektif padatanggal 1 Januari 2015 dan 1 April 2015.

The amended agreement also provides for theannual increase in the price of natural gas by3% every September. On June 24, 2015, theCompany and Pertamina entered into anagreement to amend the price of gas toUS$6.73 per MMBTU for Industrial Estates’electricity supply and US$4.37 per MMBTU forPLN’s electricity supply, effective January 1,2015 and April 1, 2015, respectively.

F-87

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

78

27. PERJANJIAN DAN IKATAN YANG SIGNIFIKAN(lanjutan)

27. SIGNIFICANT AGREEMENTS ANDCOMMITMENTS (continued)

Pembelian berdasarkan perjanjian ini untukperiode enam bulan yang berakhir padatanggal-tanggal 30 Juni 2016 dan 2015 dantahun yang berakhir pada tanggal-tanggal31 Desember 2015, 2014 dan 2013masing-masing sebesar AS$68.407.702,AS$55.645.457, AS$123.413.741,AS$102.292.713 dan AS$103.318.765. Jumlahpembayaran uang muka berdasarkan perjanjianini masing-masing sebesar AS$Nihil, AS$Nihil,AS$6.491.413 dan AS$5.772.056 pada tanggal30 Juni 2016 dan tanggal 31 Desember 2015,2014 dan 2013, dan disajikan sebagai “UangMuka” pada laporan posisi keuangankonsolidasian. Saldo utang yang timbul daritransaksi ini masing-masing sebesarAS$15.447.172 dan AS$15.617.398 padatanggal 30 Juni 2016 dan 31 Desember 2015,dan termasuk dalam akun “Utang Usaha -Pihak Ketiga” pada laporan posisi keuangankonsolidasian.

Purchases under the agreements for the six-month periods ended June 30, 2016 and 2015and the years ended December 31, 2015,2014 and 2013 amounted to US$68,407,702,US$55,645,457, US$123,413,741,US$102,292,713 and U$103,318,765,respectively. Total advance payments underthis agreement amounted to US$Nil, US$Nil,US$6,491,413 and US$5,772,056 as ofJune 30, 2016 and December 31, 2015, 2014and 2013, respectively, and are presented as“Advances” in the consolidated statements offinancial position. The balance of the relatedpayable arising from the transaction amountedto US$15,447,172 and US$15,617,398 as ofJune 30, 2016 and December 31, 2015,respectively, and is included in “TradePayables - Third Parties” in the consolidatedstatements of financial position.

Pada tanggal 14 Januari 2016, Perusahaan danPertamina mengadakan perjanjian untukmemperpanjang Perjanjian Jual Beli, yangberakhir pada tanggal 28 Desember 2015,untuk periode 6 bulan sampai tanggal 31 Juli2016.

On January 14, 2016, the Company andPertamina entered into an agreement toextend the Sale and Purchase Agreementwhich expired on December 28, 2015 for aperiod of 6 months until July 31, 2016.

Pada tanggal 30 Juni 2016 dan 31 Desember2015, Perusahaan mempunyai standby lettersof credit (SBLC) dari Citibank, N.A. Jakartamasing-masing sebesar AS$21,14 juta danAS$17,1 juta yang diterbitkan untuk keperluanPertamina dan akan berakhir masa berlakunyapada tanggal 31 Desember 2016.

As of June 30, 2016 and December 31, 2015,the Company has standby letters of credit(SBLC) from Citibank, N.A. Jakarta amountingto US$21.14 million and US$17.1 millionrespectively, which were issued in favor ofPertamina and will expire on December 31,2016.

F-88

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

79

27. PERJANJIAN DAN IKATAN YANG SIGNIFIKAN(lanjutan)

27. SIGNIFICANT AGREEMENTS ANDCOMMITMENTS (continued)

c. Pada tanggal 22 Februari 2007, Perusahaandan PT Rabana Gasindo Utama (RGU)mengadakan perjanjian atas transportasi gasbumi dari Pertamina ke Pabrik Penghasil EnergiGas milik Perusahaan di Cikarang. Sebagaikompensasi, Perusahaan membayarthroughput fee untuk RGU sebesar AS$0,55per MMBTU atas gas bumi yang diserahkan.Perubahan perjanjian ini berlaku efektif mulaidari tanggal 1 April 2006 sampai tanggal28 Desember 2015 atau saat pasokan gasbumi dari Pertamina kepada Perusahaan telahmencapai 394.113 MMSCFD, mana yangtercapai lebih dahulu. Pada tanggal 30 Juni2015, Perusahaan dan RGU menandatanganiperjanjian untuk mengubah throughput feemenjadi AS$0,32 per MMBTU efektif padatanggal 21 Mei 2015.

c. On February 22, 2007, the Company andPT Rabana Gasindo Utama (RGU) enteredinto an agreement for the transportation ofnatural gas from Pertamina to the Company’sGas Energy Generating Plant in Cikarang. Ascompensation, the Company paid RGU athroughput fee of US$0.55 per MMBTU ofnatural gas delivered. The amendedagreement was effective starting April 1, 2006until December 28, 2015 or when the supply ofnatural gas from Pertamina to the Companyhas reached 394,113 MMSCFD, whicheveroccurs first. On June 30, 2015, the Companyand RGU entered into an agreement to amendthe throughput fee to US$0.32 per MMBTU ofnatural gas delivered, effective on May 21,2015.

Throughput fee yang dibebankan pada operasiuntuk periode enam bulan yang berakhir padatanggal-tanggal 30 Juni 2016 dan 2015 dantahun yang berakhir pada tanggal-tanggal31 Desember 2015, 2014 dan 2013 masing-masing sebesar AS$Nihil, AS$1.528.725,AS$2.500.245, AS$3.312.375 danAS$3.310.460. Saldo utang yang timbul daritransaksi ini masing-masing sebesar AS$Nihil,AS$160.570, AS$276.212 dan AS$276.270pada tanggal 30 Juni 2016 dan tanggal31 Desember 2015, 2014 dan 2013, dantermasuk dalam akun “Utang Usaha - PihakKetiga” pada laporan posisi keuangankonsolidasian.

Perusahaan dan RGU tidak memperpanjangperjanjian setelah masa berlakunya berakhir.

Throughput fee charged to operations for thesix-month periods ended June 30, 2016 and2015 and the years ended December 31,2015, 2014 and 2013 amounted to US$Nil,US$1,528,725, US$2,500,245, US$3,312,375and US$3,310,460, respectively. Thebalances of the related payables arising fromthese transactions amounted to US$Nil,US$160,570, US$276,212 and US$276,270as of June 30, 2016 and December 31, 2015,2014 and 2013, respectively, and are includedin “Trade Payables - Third Parties” in theconsolidated statements of financial position.

The Company and RGU did not extend theagreement after it expired.

d. Pada tanggal 22 Februari 2007, Perusahaandan PT Gasindo Pratama Sejati (GPS)mengadakan perjanjian atas transportasi gasbumi dari Pertamina ke Pabrik Penghasil EnergiGas milik Perusahaan di Cikarang. Sebagaikompensasi, Perusahaan membayar throughputfee untuk GPS sebesar AS$0,12 per MMBTUdan throughput fee operasi sebesar AS$0,24per MMBTU dari gas bumi yang diserahkan.

d. On February 22, 2007, the Company andPT Gasindo Pratama Sejati (GPS) enteredinto an agreement for the transportation ofnatural gas from Pertamina to the Company’sGas Energy Generating Plant in Cikarang. Ascompensation, the Company pays GPS athroughput fee of US$0.12 per MMBTU andan operating throughput fee of US$0.24 perMMBTU of natural gas delivered.

F-89

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

80

27. PERJANJIAN DAN IKATAN YANG SIGNIFIKAN(lanjutan)

27. SIGNIFICANT AGREEMENTS ANDCOMMITMENTS (continued)

Perubahan perjanjian ini berlaku efektif mulaidari tanggal 1 April 2006 sampai tanggal28 Desember 2015 atau ketika pasokan gasbumi dari Pertamina kepada Perusahaan telahmencapai 394.113 MMSCFD, mana yangtercapai lebih dahulu. Throughput fee yangdibebankan pada operasi masing-masingsebesar AS$5.267.728, AS$2.760.428,AS$2.844.396, AS$5.212.572 danAS$5.080.650 untuk periode enam bulan yangberakhir pada tanggal-tanggal 30 Juni 2016 dan2015 dan tahun yang berakhir pada tanggal-tanggal 31 Desember 2015, 2014 dan 2013.Saldo utang yang timbul dari transaksi inimasing-masing sebesar AS$460.713,AS$11.012, AS$456.985 dan AS$495.484 padatanggal 30 Juni 2016 dan tanggal 31 Desember2015, 2014 dan 2013, dan termasuk dalam“Utang Usaha - Pihak Berelasi” pada laporanposisi keuangan konsolidasian.

The amended agreement is effective startingApril 1, 2006 until December 28, 2015 orwhen the supply of natural gas fromPertamina to the Company has reached394,113 MMSCFD, whichever occurs first.Throughput fee charged to operationsamounted to US$5,267,728, US$2,760,428,US$2,844,396, US$5,212,572 andUS$5,080,650 for the six-month periodsended June 30, 2016 and 2015 and the yearsended December 31, 2015, 2014 and 2013,respectively. The balances of the relatedpayables arising from these transactionsamounted to US$460,713, US$11,012,US$456,985 and US$495,484 as of June 30,2016 and December 31, 2015, 2014 and2013, respectively, and are included in “TradePayables - Related Party” in the consolidatedstatements of financial position.

Pada tanggal 29 Juli 2016, Perusahaan danGPS sedang dalam proses perpanjanganperjanjian.

As of July 29, 2016, the Company and GPSare in the process of extending theagreement.

e. Pada tanggal 19 Januari 2005, Perusahaanmengadakan perjanjian dengan PT RabanaGasindo Makmur (RGM), dimana RGMmenyetujui untuk menyediakan gas bumisebesar 18.068 BSCF kepada Perusahaanpada harga AS$2,85 per MMBTU atas gas bumiyang diserahkan. Perjanjian ini berlaku untuksepuluh (10) tahun sampai dengan Januari2015 atau ketika pasokan gas padaPerusahaan mencapai 18.068 BSCF.

Pembelian berdasarkan perjanjian ini untukperiode enam bulan yang berakhir padatanggal-tanggal 30 Juni 2016 dan 2015 dantahun yang berakhir pada tanggal-tanggal31 Desember 2015, 2014 dan 2013,masing-masing sebesar AS$83.091,AS$4.109.379, AS$7.849.800, AS$12.651.486dan AS$14.042.461. Saldo utang yang timbuldari transaksi ini masing-masing sebesarAS$Nihil, AS$500.018, AS$2.076.703 danAS$1.248.379 pada tanggal 30 Juni 2016 dantanggal 31 Desember 2015, 2014 dan 2013,dan termasuk dalam “Utang Usaha - PihakKetiga” dalam laporan posisi keuangankonsolidasian.

e. On January 19, 2005, the Company enteredinto an agreement with PT Rabana GasindoMakmur (RGM), whereby RGM agreed tosupply a total of 18,068 BSCF natural gas tothe Company at the price of US$2.85 perMMBTU of natural gas delivered. Thisagreement was valid for ten (10) years untilJanuary 2015 or when the gas supply to theCompany reached 18,068 BSCF.

Purchases under the agreement for the six-month periods ended June 30, 2016 and 2015and the years ended December 31,2015, 2014 and 2013, amounted toUS$83,091, US$4,109,379, US$7,849,800,US$12,651,486 and US$14,042,461,respectively. The balances of the relatedpayables arising from these transactionsamounted to US$Nil, US$500,018,US$2,076,703 and US$1,248,379 as of June30, 2016 and December 31, 2015, 2014 and2013, respectively, and are included in “TradePayables - Third Parties” in the consolidatedstatements of financial position.

F-90

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

81

27. PERJANJIAN DAN IKATAN YANG SIGNIFIKAN(lanjutan)

27. SIGNIFICANT AGREEMENTS ANDCOMMITMENTS (continued)

Perjanjian ini diperpanjang sampai denganbulan Desember 2015. Berdasarkan perjanjianyang diubah, Perusahaan menyetujui untukmengubah harga gas menjadi AS$7,35 perMMBTU, yang berlaku efektif dari tanggal 1 Juni2015 sampai tanggal 31 Desember 2015.

Perusahaan dan RGM tidak memperpanjangperjanjian setelah masa berlakunya berakhirtetapi Perusahaan masih melakukan pembeliangas dari RGM di bulan Januari 2016.

The agreement was extended until December2015. Under the amended agreement, theCompany agreed to amend the gas price toUS$7.35 per MMBTU, effective from June 1,2015 until December 31, 2015.

The Company and RGM did not extend theagreement after it expired but the Companystill purchased gas from RGM in January2016.

f. Pada tanggal 20 Mei 2013, Perusahaan danPGN mengadakan Perjanjian Jual Beli untukpasokan gas bumi untuk mengubah perjanjianyang dibuat pada tanggal 28 November 2007dan 29 Juni 2009. Dalam perjanjian tersebut,para pihak setuju mengenai minimal danmaksimal konsumsi gas per bulan adalahsebagai berikut: minimal 57.500 MMBTU perhari dan maksimal 69.000 MMBTU per hariuntuk periode dari 1 Juni 2013 sampai 31 Maret2020.

f. On May 20, 2013, the Company and PGNentered into a Sale and Purchase Agreementfor the supply of natural gas to amend theagreements entered into on November 28,2007 and June 29, 2009. Under theagreement, the parties agreed to minimumand maximum gas consumption per month asfollows: minimum of 57,500 MMBTU per dayand maximum of 69,000 MMBTU per day forthe period from June 1, 2013 to March 31,2020.

Berdasarkan surat No. 043300.S/PP.03/PENJ/2013 dari PGN pada tanggal 18 Maret2013, PGN memberitahukan kepadaPerusahaan bahwa harga gas bumi akanmenjadi AS$7,56 per MMBTU ditambah denganRp750 per M3 untuk periode dari tanggal 1 April2013 sampai dengan berakhirnya masa berlakukontrak.

Based on letter No. 043300.S/PP.03/PENJ/2013 from PGN dated March 18, 2013,PGN notified the Company that the price ofnatural gas will be US$7.56 per MMBTU plusRp750 per M3 for the period from April 1,2013 until the expiration of the contract.

Berdasarkan Akta Notaris VeronicaNataadmadja, SH., M.Corp Admin., M.Com. No.71 tanggal 28 Agustus 2013, Perusahaanmemperoleh standby letters of credit (SBLC)dari PT Bank Maybank Indonesia Tbk (dahuluPT Bank Internasional Indonesia Tbk)(Maybank) sebesar AS$35 juta dan Rp100miliar dimana AS$31,29 juta dan Rp89,89 miliarditerbitkan untuk kepentingan PGN.

Based on Notarial Deed No. 71 of VeronicaNataadmadja, SH., M.Corp Admin., M.Com.dated August 28, 2013, the Company obtainedstandby letters of credit (SBLC) from PT BankMaybank Indonesia Tbk (formerly PT BankInternasional Indonesia Tbk) (Maybank)amounting to US$35 million and Rp100 billionof which US$31.29 million and Rp89.89 billionwas issued in favor of PGN.

Pada tanggal 31 Desember 2014 dan 2013,SBLC ini dijamin dengan deposito kasPerusahaan di Maybank masing-masingsebesar AS$3,13 juta dan Rp9,1 miliar danAS$3,13 juta dan Rp9 miliar, yang berakhirpada berbagai tanggal sampai dengan1 Februari 2016. SBLC dengan Maybankdihentikan pada bulan Agustus 2015.

As of December 31, 2014 and 2013, the SBLCwas secured by the Company’s cash depositsin Maybank amounting to US$3.13 million andRp9.1 billion and US$3.13 million and Rp9billion, respectively, which expired on variousdates up to February 1, 2016. The SBLC withMaybank were terminated in August 2015.

F-91

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

82

27. PERJANJIAN DAN IKATAN YANG SIGNIFIKAN(lanjutan)

27. SIGNIFICANT AGREEMENTS ANDCOMMITMENTS (continued)

Pada bulan September 2015, Perusahaanmemperoleh SBLC dari Standard CharteredBank sebesar AS$28,57 juta dan Rp81,67miliar yang diterbitkan untuk keperluan PGN.SBLC akan berakhir masa berlakunya padatanggal 31 Agustus 2016.

In September 2015, the Company obtainedSBLC from Standard Chartered Bankamounting to US$28.57 million and Rp81.67billion which were issued in favor of PGN. TheSBLC will expire on August 31, 2016.

Pembelian berdasarkan perjanjian ini masing-masing sebesar AS$63.397.490 danRp180.430.163.326, AS$73.233.417 danRp208.991.540.986, AS$138.626.917 danRp395.701.500.819, AS$145.290.350 danRp415.784.697.454 dan AS$133.758.761 danRp392.175.357.947 untuk periode enam bulanyang berakhir pada tanggal-tanggal 30 Juni2016 dan 2015 dan tahun yang berakhir padatanggal-tanggal 31 Desember 2015, 2014 dan2013. Saldo utang yang timbul dari transaksi inimasing-masing sebesar AS$13.115.862,AS$12.168.917, AS$14.615.470 danAS$11.916.083 pada tanggal 30 Juni 2016 dantanggal 31 Desember 2015, 2014 dan 2013,dan termasuk dalam "Utang Usaha - PihakKetiga" pada laporan posisi keuangankonsolidasian.

Purchases under the agreement amounted toUS$63,397,490 and Rp180,430,163,326,US$73,233,417 and Rp208,991,540,986,US$138,626,917 and Rp395,701,500,819,US$145,290,350 and Rp415,784,697,454 andUS$133,758,761 and Rp392,175,357,947 forthe six-month periods ended June 30, 2016and 2015, and the years ended December 31,2015, 2014 and 2013, respectively. Thebalances of the related payables arisingfrom these transactions amountedto US$13,115,862, US$12,168,917,US$14,615,470 and US$11,916,083 as ofJune 30, 2016 and December 31, 2015, 2014and 2013, respectively, and are included in“Trade Payables - Third Parties” in theconsolidated statements of financial position.

g. Pada tanggal 17 Mei 2013, Perusahaan,sebagai pembeli, mengadakan kontrak denganPT Budimulia Penta Realti untuk pembelianruang kantor yang berlokasi di Jl. Prof. Dr.Satrio Kav C 4, Kuningan Timur, Setiabudi,Jakarta Selatan dengan estimasi hargaAS$10.991.750. Jumlah pembayaran uangmuka berdasarkan kontrak ini masing-masingsebesar AS$10.991.750, AS$9.992.500,AS$6.035.500 dan AS$2.078.500 padatanggal 30 Juni 2016 dan tanggal31 Desember 2015, 2014 dan 2013, dandisajikan sebagai "Uang Muka untukPembelian Aset Tetap - Pihak Berelasi" padalaporan posisi keuangan konsolidasian.

g. On May 17, 2013, the Company, as buyer,entered into a contract for the purchase ofoffice space located in Jl. Prof. Dr. SatrioKav C 4, Kuningan Timur, Setiabudi, SouthJakarta with PT Budimulia Penta Realti for anestimated price of US$10,991,750. Totaladvance payments under this contractamounted to US$10,991,750, US$9,992,500,US$6,035,500 and US$2,078,500 as ofJune 30, 2016 and December 31, 2015, 2014and 2013, respectively, and are presentedunder "Advances for Purchase of Property,Plant, and Equipment - Related Party" in theconsolidated statements of financial position.

F-92

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

83

27. PERJANJIAN DAN IKATAN YANG SIGNIFIKAN(lanjutan)

27. SIGNIFICANT AGREEMENTS ANDCOMMITMENTS (continued)

h. Pada tanggal 6 Juli 2012, Perusahaanmengadakan kontrak dengan PT CitramasjayaTeknikmandiri atas perancangan, pasokan,pengiriman ke lokasi, ereksi, komisioning danpengujian atas 150 kV Transmission Line yangberkaitan dengan pembangunan turbinbatubara. Pada tanggal 20 Oktober 2015,Perusahaan mengadakan perubahan kontrakdengan PT Citramasjaya Teknikmandiri dimanaestimasi harga kontrak diubah menjadiRp135.317.432.777, tidak termasuk PPN.

h. On July 6, 2012, the Company entered into acontract with PT Citramasjaya Teknikmandirifor the design, supply, delivery to site,erection, commissioning and testing of a150 kV Transmission Line related to theconstruction of the coal fired turbine. OnOctober 20, 2015, the Company entered intoan amendment to the contract withPT Citramasjaya Teknikmandiri amending theestimated contract price to beRp135,317,432,777, excluding VAT.

Jumlah pembayaran uang muka berdasarkankontrak ini masing-masing sebesarRp13.649.233.510 (AS$1.035.602),Rp13.649.233.510 (AS$989.433),Rp13.649.233.510 (AS$1.097.205) danRp13.649.233.510 (AS$1.119.799) padatanggal 30 Juni 2016 dan tanggal 31 Desember2015, 2014 dan 2013, dan disajikan sebagai"Uang Muka untuk Pembelian Aset Tetap -Pihak Ketiga" pada laporan posisi keuangankonsolidasian. Jumlah biaya yang dikeluarkanberdasarkan kontrak ini masing-masing sebesarRp117.451.024.087 (AS$9.797.350),Rp106.800.714.919 (AS$9.005.451),Rp68.775.446.848 (AS$6.115.741) danRp38.668.434.528 (AS$3.570.866) padatanggal 30 Juni 2016 dan tanggal 31 Desember2015, 2014 dan 2013, dan disajikan sebagai"Mesin dan Peralatan DalamInstalasi/Konstruksi" dalam "Aset Tetap" padalaporan posisi keuangan konsolidasian.

Total advance payments under this contractamounted to Rp13,649,233,510(US$1,035,602), Rp13,649,233,510(US$989,433), Rp13,649,233,510(US$1,097,205) and Rp13,649,233,510(US$1,119,799) as of June 30, 2016 andDecember 31, 2015, 2014 and 2013,respectively, and are presented as “Advancesfor Purchase of Property, Plant andEquipment - Third Parties” in the consolidatedstatements of financial position. Total costsincurred under this contract amounted toRp117,451,024,087 (US$9,797,350),Rp106,800,714,919 (US$9,005,451),Rp68,775,446,848 (US$6,115,741) andRp38,668,434,528 (US$3,570,866) as ofJune 30, 2016 and December 31, 2015, 2014and 2013, respectively, and are presented as"Machinery and Equipment UnderInstallation/Construction" under "Property,Plant and Equipment" in the consolidatedstatements of financial position.

i. Pada tanggal 4 Oktober 2012, Perusahaanmengadakan kontrak boiler plant offshoresupply dengan Valmet Technologies Oy terkaitdengan pembangunan turbin batubara. Padatanggal 10 November 2015, Perusahaanmengadakan perubahan kontrak denganValmet Technologies Oy dimana estimasi hargakontrak diubah menjadi EUR€90.471.577, tidaktermasuk PPN.

i. On October 4, 2012, the Company enteredinto a boiler plant offshore supply contract withValmet Technologies Oy related to theconstruction of coal fired turbine. OnNovember 10, 2015, the Company enteredinto an amendment to the contract with ValmetTechnologies Oy amending the estimatedcontract price to be EUR€90,471,577,excluding VAT.

F-93

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

84

Jumlah uang muka berdasarkan kontrak inimasing-masing sebesar EUR€26.895.900(AS$29.897.711), EUR€26.895.900(AS$29.381.748), EUR€26.895.900(AS$32.718.300) dan EUR€26.895.900(AS$37.116.739) pada tanggal 30 Juni 2016dan tanggal 31 Desember 2015, 2014 dan2013, dan disajikan sebagai "Uang Muka untukPembelian Aset Tetap - Pihak Ketiga" dalamlaporan posisi keuangan konsolidasian.

Total advance payments under this contractamounted to EUR€26,895,900(US$29,897,711), EUR€26,895,900(US$29,381,748), EUR€26,895,900(US$32,718,300) and EUR€26,895,900(US$37,116,739) as of June 30, 2016 andDecember 31, 2015, 2014 and 2013,respectively, and are presented as “Advancesfor Purchase of Property, Plant andEquipment - Third Parties” in the consolidatedstatements of financial position.

Jumlah biaya yang dikeluarkan berdasarkankontrak ini masing-masing sebesarEUR€54.077.219 (AS$71.814.247),EUR€54.062.419 (AS$71.360.049),EUR€46.350.754 (AS$62.488.627) danEUR€13.447.950 (AS$18.575.543) padatanggal 30 Juni 2016 dan tanggal 31 Desember2015, 2014 dan 2013, dan disajikan sebagai"Mesin dan Peralatan DalamInstalasi/Konstruksi" dalam "Aset Tetap" padalaporan posisi keuangan konsolidasian.

Total costs incurred under this contractamounted to EUR€54,077,219(US$71,814,247), EUR€54,062,419(US$71,360,049), EUR€46,350,754(US$62,488,627) and EUR€13,447,950(US$18,575,543) as of June 30, 2016 andDecember 31, 2015, 2014 and 2013,respectively, and are presented as "Machineryand Equipment UnderInstallation/Construction" under "Property,Plant and Equipment" in the consolidatedstatements of financial position.

Pada tanggal 31 Maret 2015, Perusahaanmemperoleh standby letters of credit (SBLC)dari PT Bank UOB Indonesia (UOB) dimanaEUR€15 juta (AS$18,25 juta) diterbitkan untukkeperluan Valmet Technologies Oy. SBLCdengan UOB dihentikan pada bulan Agustus2015.

Pada tanggal 30 Juni 2016 dan 31 Desember2015, Perusahaan mempunyai SBLC dariCitibank, N.A. Jakarta masing-masing bernilaiEUR€8 juta (AS$8,89 juta) dan EUR€8 juta(AS$8,74 juta) yang diterbitkan untuk keperluanValmet Technologies Oy. SBLC akan berakhirmasa berlakunya pada bulan September 2016.

As of March 31, 2015, the Company obtainedstandby letters of credit (SBLC) from PT BankUOB Indonesia (UOB) of which EUR€15million (US$18.25 million) was issued in favorof Valmet Technologies Oy. The SBLC withUOB was terminated in August 2015.

As of June 30, 2016 and December 31, 2015,the Company has SBLC from Citibank, N.A.Jakarta amounting to EUR€8 million (US$8.89million) and EUR€8 million (US$8.74 million),respectively, which were issued in favor ofValmet Technologies Oy. The SBLC willexpire in September 2016.

27. PERJANJIAN DAN IKATAN YANG SIGNIFIKAN(lanjutan)

27. SIGNIFICANT AGREEMENTS ANDCOMMITMENTS (continued)

F-94

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

85

27. PERJANJIAN DAN IKATAN YANG SIGNIFIKAN(lanjutan)

27. SIGNIFICANT AGREEMENTS ANDCOMMITMENTS (continued)

j. Pada tanggal 4 Oktober 2012, Perusahaanmengadakan kontrak dengan PT ValmetIndonesia untuk transportasi darat, ereksi,komisioning dan pengujian pabrik boiler yangberkaitan dengan pembangunan turbin batubaraPada tanggal 3 Juni 2016, Perusahaanmengadakan perubahan kontrak denganPT Valmet Indonesia dimana estimasi hargakontrak diubah menjadi Rp182.607.904.703,tidak termasuk PPN. Jumlah pembayaran uangmuka berdasarkan kontrak ini masing-masingRp18.414.396.000 (AS$1.397.147),Rp18.414.396.000 (AS$1.334.860),Rp18.414.396.000 (AS$1.480.256) danRp18.414.396.000 (AS$1.510.739) padatanggal 30 Juni 2016 dan tanggal 31 Desember2015, 2014 dan 2013, dan disajikan sebagai"Uang Muka untuk Pembelian Aset Tetap -Pihak Ketiga" pada laporan posisi keuangankonsolidasian.

j. On October 4, 2012, the Company enteredinto a contract with PT Valmet Indonesia forthe inland transport, erection, commissioningand testing of boiler plant related to theconstruction of coal fired turbine. OnJune 3, 2016, the Company entered into anamendment to the contract with PT ValmetIndonesia amending the estimated contractprice to be Rp182,607,904,703, excludingVAT. Total advance payments under thiscontract amounted to Rp18,414,396,000(US$1,397,147), Rp18,414,396,000(US$1,334,860), Rp18,414,396,000(US$1,480,256) and Rp18,414,396,000(US$1,510,739) as of June 30, 2016 andDecember 31, 2015, 2014 and 2013,respectively, and are presented as “Advancesfor Purchase of Property, Plant andEquipment - Third Parties” in the consolidatedstatements of financial position.

Jumlah biaya yang dikeluarkan berdasarkankontrak ini masing-masing sebesarRp148.592.863.103 (AS$11.727.276),Rp132.295.436.900 (AS$10.510.909) danRp48.799.089.415 (AS$4.161.899) padatanggal 30 Juni 2016 dan tanggal 31 Desember2015 dan 2014, dan disajikan sebagai "Mesindan Peralatan Dalam Instalasi/Konstruksi"dalam "Aset Tetap" pada laporan posisikeuangan konsolidasian.

Total costs incurred under this contractamounted to Rp148,592,863,103(US$11,727,276), Rp132,295,436,900(US$10,510,909) and Rp48,799,089,415(US$4,161,899) as of June 30, 2016 andDecember 31, 2015 and 2014, respectively,and are presented as "Machinery andEquipment Under Installation/Construction"under "Property, Plant and Equipment" in theconsolidated statements of financial position.

k. Pada tanggal 19 Oktober 2012, Perusahaanmengadakan kontrak dengan PT SiemensIndonesia untuk transportasi darat, ereksi,komisioning dan pengujian turbin uap yangberkaitan dengan pembangunan turbinbatubara. Pada tanggal 13 Maret 2014,Perusahaan mengadakan perubahan kontrakdengan PT Siemens Indonesia dimana estimasiharga kontrak diubah menjadi EUR€4.592.530,tidak termasuk PPN. Jumlah pembayaran uangmuka berdasarkan kontrak ini sebesarEUR€1.086.256 (AS$1.207.492) danEUR€1.086.256 (AS$1.186.653) pada tanggal30 Juni 2016 dan 31 Desember 2015, dandisajikan sebagai “Uang Muka Pembelian AsetTetap - Pihak Ketiga” pada laporan posisikeuangan konsolidasian.

k. On October 19, 2012, the Company enteredinto a contract with PT Siemens Indonesia forthe inland transport, erection, commissioningand testing of steam turbine related to theconstruction of coal fired turbine. OnMarch 13, 2014, the Company entered into anamendment to the contract with PT SiemensIndonesia amending the estimated contractprice to be EUR€4,592,530, excluding VAT.Total advance payments under this contractamounted to EUR€1,086,256 (US$1,207,492)and EUR€1,086,256 (US$1,186,653), as ofJune 30, 2016 and December 31, 2015, andare presented as “Advances for Purchase ofProperty, Plant and Equipment - Third Parties”in the consolidated statements of financialposition.

F-95

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

86

27. PERJANJIAN DAN IKATAN YANG SIGNIFIKAN(lanjutan)

27. SIGNIFICANT AGREEMENTS ANDCOMMITMENTS (continued)

Jumlah biaya yang dikeluarkan berdasarkankontrak ini sebesar EUR€2.096.613(AS$2.350.125) dan EUR€2.096.613(AS$2.350.125) pada tanggal 30 Juni 2016 dan31 Desember 2015, dan disajikan sebagai"Mesin dan Peralatan DalamInstalasi/Konstruksi" dalam "Aset Tetap" padalaporan posisi keuangan konsolidasian.

Total costs incurred under this contractamounted to EUR€2,096,613 (US$2,350,125)and EUR€2,096,613 (US$2,350,125) as ofJune 30, 2016 and December 31, 2015,respectively, and are presented as "Machineryand Equipment UnderInstallation/Construction" under "Property,Plant and Equipment" in the consolidatedstatements of financial position.

l. Pada tanggal 19 Oktober 2012, Perusahaanmengadakan kontrak dengan Siemens AGuntuk turbin penggerak panas steam turbinegenerator pabrik pembangkit yang berkaitandengan pembangunan turbin batubara. Padatanggal 20 Februari 2015, Perusahaanmengadakan perubahan kontrak denganSiemens AG dimana estimasi harga kontrakdiubah menjadi EUR€25.564.045. Jumlahpembayaran uang muka berdasarkan kontrak inimasing-masing EUR€2.553.247(AS$2.838.211), EUR€2.553.247(AS$2.789.230), EUR€2.553.247(AS$3.105.972) dan EUR€2.553.247(AS$3.523.518) pada tanggal 30 Juni 2016 dantanggal 31 Desember 2015, 2014 dan 2013,disajikan sebagai "Uang Muka untuk PembelianAset Tetap - Pihak Ketiga" pada laporan posisikeuangan konsolidasian. Jumlah biaya yangdikeluarkan berdasarkan kontrak ini sebesarEUR€21.735.963 (AS$27.804.195),EUR€20.461.129 (AS$26.365.354),EUR€20.198.667 (AS$26.069.044) danEUR€12.766.237 (AS$16.918.791) padatanggal 30 Juni 2016 dan tanggal 31 Desember2015, 2014 dan 2013, dan disajikan sebagai"Mesin dan Peralatan DalamInstalasi/Konstruksi" dalam "Aset Tetap" padalaporan posisi keuangan konsolidasian.

l. On October 19, 2012, the Company enteredinto a contract with Siemens AG for the supplyof steam turbine generator plant relating to theconstruction of coal fired turbine. On February20, 2015, the Company entered into anamendment to the contract with Siemens AGamending the estimated contract price to beEUR€25,564,045. Total advance paymentsunder this contract amounted toEUR€2,553,247 (US$2,838,211),EUR€2,553,247 (US$2,789,230),EUR€2,553,247 (US$3,105,972) andEUR€2,553,247 (US$3,523,518) as of June30, 2016 and December 31, 2015, 2014 and2013, respectively, and are presented as“Advances for Purchase of Property, Plantand Equipment - Third Parties” in theconsolidated statements of financial position.Total costs incurred under this contractamounted to EUR€21,735,963(US$27,804,195), EUR€20,461,129(US$26,365,354), EUR€20,198,667(US$26,069,044) and EUR€12,766,237(US$16,918,791) as of June 30, 2016 andDecember 31, 2015, 2014 and 2013,respectively, and are presented as "Machineryand Equipment UnderInstallation/Construction" under "Property,Plant and Equipment" in the consolidatedstatements of financial position.

F-96

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

87

27. PERJANJIAN DAN IKATAN YANG SIGNIFIKAN(lanjutan)

27. SIGNIFICANT AGREEMENTS ANDCOMMITMENTS (continued)

m. Pada tanggal 17 April 2013, Perusahaanmengadakan kontrak dengan SPX CoolingTechnologies Belgium untuk pasokan lepaspantai pendingin udara pabrik kondensor yangterkait dengan pembangunan turbin berbahanbakar batubara dengan estimasi harga kontraksebesar AS$13.010.000. Jumlah pembayaranuang muka berdasarkan kontrak ini sebesarAS$1.301.000 pada tanggal 30 Juni 2016 dantanggal 31 Desember 2015, 2014 dan 2013,dan disajikan sebagai "Uang Muka untukPembelian Aset Tetap - Pihak Ketiga" padalaporan posisi keuangan konsolidasian.

m. On April 17, 2013, the Company entered intoa contract with SPX Cooling TechnologiesBelgium for offshore supply of air cooledcondenser plant related to the construction ofcoal fired turbine for an estimated contractprice of US$13,010,000. Total advancepayments under this contract amounted toUS$1,301,000, as of June 30, 2016 andDecember 31, 2015, 2014 and 2013, and arepresented as “Advances for Purchase ofProperty, Plant and Equipment - Third Parties”in the consolidated statements of financialposition.

Jumlah biaya yang dikeluarkan berdasarkankontrak ini masing-masing sebesarAS$10.733.250, AS$10.733.250, AS$6.830.250dan AS$3.903.000 pada tanggal 30 Juni 2016dan tanggal 31 Desember 2015, 2014 dan 2013dan disajikan sebagai "Mesin dan PeralatanDalam Instalasi/Konstruksi" dalam "Aset Tetap"pada laporan posisi keuangan konsolidasian.

Total costs incurred under this contractamounted to US$10,733,250, US$10,733,250,US$6,830,250 and US$3,903,000 as of June30, 2016 and December 31, 2015, 2014 and2013, respectively, and are presented as"Machinery and Equipment UnderInstallation/Construction" under "Property,Plant and Equipment" in the consolidatedstatements of financial position.

n. Pada tanggal 3 Februari 2014, Perusahaanmengadakan kontrak dengan PT TeknikoIndonesia untuk melakukan pasokan darat,transportasi darat, ereksi, komisioning danpengujian sistem penanganan batu kapur yangterkait dengan pembangunan turbin berbahanbakar batubara. Pada tanggal 25 November2015, Perusahaan mengadakan perubahankontrak dengan PT Tekniko Indonesia. dimanaestimasi harga kontrak diubah menjadiAS$4.233.000 dan Rp42.000.000, tidaktermasuk PPN. Jumlah pembayaran uang mukaberdasarkan kontrak ini masing-masing sebesarAS$210.650 dan Rp4.620.000 danAS$323.147 dan RpNihil pada tanggal 30 Juni2016 dan 31 Desember 2015 dan disajikansebagai "Uang Muka untuk Pembelian AsetTetap - Pihak Ketiga" pada laporan posisikeuangan konsolidasian. Jumlah biaya yangdikeluarkan berdasarkan kontrak ini masing-masing sebesar AS$2.549.801, AS$1.424.831dan AS$219.890 pada tanggal 30 Juni 2016dan tanggal 31 Desember 2015 dan 2014, dandisajikan sebagai "Mesin dan Peralatan DalamInstalasi/ Konstruksi" dalam "Aset Tetap" padalaporan posisi keuangan konsolidasian.

n. On February 3, 2014, the Company enteredinto a contract with PT Tekniko Indonesia toperform onshore supply, inland transport,erection, commissioning and resting of thelimestone handling system related to theconstruction of coal fired turbine. OnNovember 25, 2015, the Company enteredinto an amendment to the contract withPT Tekniko Indonesia amending the estimatedcontract price to be US$4,233,000 andRp42,000,000, excluding VAT. Total advancepayments under this contract amounted toUS$210,650 and Rp4,620,000 andUS$323,147 and RpNil as of June 30, 2016and December 31, 2015, respectively, and arepresented as “Advances for Purchase ofProperty, Plant and Equipment - Third Parties”in the consolidated statements of financialposition. Total costs incurred under thiscontract amounting to US$2,549,801,US$1,424,831 and US$219,890 as of June30, 2016 and December 31, 2015 and 2014respectively, are presented as "Machinery andEquipment Under Installation/Construction"under "Property, Plant and Equipment" in theconsolidated statements of financial position.

F-97

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

88

27. PERJANJIAN DAN IKATAN YANG SIGNIFIKAN(lanjutan)

27. SIGNIFICANT AGREEMENTS ANDCOMMITMENTS (continued)

o. Pada tanggal 6 Mei 2015, Perusahaanmengadakan kontrak dengan Deluge FireProtection Pte. Ltd. untuk melakukanpengadaan lepas pantai pendeteksi kebakarandan sistem perlindungan yang terkait denganpembangunan turbin berbahan bakar batubara.Pada tanggal 10 Desember 2015, Perusahaanmengadakan perubahan kontrak denganDeluge Fire Protection Pte. Ltd. dimanaestimasi harga kontrak diubah menjadiAS$2.075.413, tidak termasuk PPN. Jumlahbiaya yang dikeluarkan berdasarkan kontrak inisebesar AS$721.553 pada tanggal 30 Juni2016, dan disajikan sebagai "Mesin danPeralatan Dalam Instalasi/Konstruksi" dalam"Aset Tetap" pada laporan posisi keuangankonsolidasian periode 2016.

o. On May 6, 2015, the Company entered into acontract with Deluge Fire Protection Pte. Ltd.to perform offshore supply of fire detectionand protection systems related to theconstruction of coal fired turbine. OnDecember 10, 2015, the Company enteredinto an amendment to the contract withDeluge Fire Protection Pte. Ltd. amending theestimated contract price to be US$2,075,413,excluding VAT. Total costs incurred under thiscontract amounting to US$721,553as of June 30, 2016, are presented as"Machinery and Equipment UnderInstallation/Construction" under "Property,Plant and Equipment" in the 2016consolidated statement of financial position.

p. Pada tanggal 11 November 2015, Perusahaanmengadakan kontrak dengan PT HamsonIndonesia untuk menyediakan danmengeksekusi pekerjaan tertentu terkaitdengan CBL Dredging dan Associated Worksuntuk pembangkit listrik berbahan bakarbatubara dengan estimasi harga kontraksebesar Rp169.734.069.780, tidak termasukPPN. Jumlah biaya yang dikeluarkanberdasarkan kontrak ini sebesarRp7.086.124.431 (AS$535.895) pada tanggal30 Juni 2016 dan disajikan sebagai "Mesin danPeralatan Dalam Instalasi/Konstruksi" dalam"Aset Tetap" pada laporan posisi keuangankonsolidasian periode 2016.

p. On November 11, 2015, the Companyentered into a contract with PT HamsonIndonesia, whereby PT Hamson Indonesiaagreed to provide and execute certain worksrelated to CBL Dredging and AssociatedWorks for the Coal-Fired Power Stationfor an estimated contract price ofRp169,734,069,780, excluding VAT. Totalcosts incurred under this contract amountingto Rp7,086,124,431 (US$535,895) as ofJune 30, 2016 are presented as "Machineryand Equipment UnderInstallation/Construction" under "Property,Plant and Equipment" in the 2016consolidated statement of financial position.

q. Pada tanggal 13 Juli 2015, Perusahaan danPT Pertamina Gas menandatangani perjanjianuntuk pembangunan, operasi dan pemeliharaanjaringan pipa gas di Cikarang, Bekasi.Berdasarkan perjanjian tersebut, Perusahaanharus membayar AS$150.000, tidak termasukPPN, per bulan untuk jangka waktu 3 tahununtuk biaya pipa dan biaya tambahan untukoperasi pipa sebagaimana diatur dalamkontrak. Kontrak tersebut akan berakhir padabulan Juli 2018.

q. On July 13, 2015, the Company andPT Pertamina Gas entered into an agreementfor the construction, operation andmaintenance of a gas pipeline in Cikarang,Bekasi. Under the agreement, the Companyshall pay US$150,000, excluding VAT, permonth for a period of 3 years for the cost ofthe pipeline and additional fee for theoperation of the pipe as stipulated in thecontract. The contract will expire in July 2018.

F-98

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

89

27. PERJANJIAN DAN IKATAN YANG SIGNIFIKAN(lanjutan)

27. SIGNIFICANT AGREEMENTS ANDCOMMITMENTS (continued)

Pada tanggal 30 Juni 2016 dan 31 Desember2015, pembayaran masa depan berdasarkankontrak ini disajikan dalam "Utang lain-lain"dalam laporan posisi keuangan konsolidasianadalah sebagai berikut:

As of June 30, 2016 and December 31, 2015,the future payments under this contractpresented in “Other payables” in theconsolidated statements of financial positionare as follows:

30 Juni 2016/ 31 Desember 2015/June 30, 2016 December 31, 2015

Nilai pokok 4.290.000 5.280.000 Principal amountDikurangi dengan Less amount

bunga yang berlaku 318.028 473.061 applicable to interest

Neto 3.971.972 4.806.939 NetDikurangi bagian yang akan

jatuh tempo dalamwaktu satu tahun 1.911.472 1.846.375 Less current maturities

Bagian jangka panjang 2.060.500 2.960.564 Long-term maturities

r. Pada tanggal 4 Januari 2016, Perusahaanmengadakan kontrak dengan PT Wijaya Karya(Persero) Tbk untuk pembangunan dermagapenerimaan terkait dengan pembangunanturbin berbahan bakar batubara denganestimasi harga kontrak sebesarRp73.695.898.523, tidak termasuk PPN.Jumlah pembayaran uang muka berdasarkankontrak ini sebesar Rp8.106.548.837(AS$615.064) pada tanggal 30 Juni 2016, dandisajikan sebagai "Uang Muka untuk PembelianAset Tetap - Pihak Ketiga" pada laporan posisikeuangan konsolidasian periode 2016. Jumlahbiaya yang dikeluarkan berdasarkan kontrak inisebesar Rp4.522.420.619 (AS$332.165) padatanggal 30 Juni 2016, dan disajikan sebagai"Mesin dan Peralatan Dalam Instalasi/Konstruksi" dalam "Aset Tetap" pada laporanposisi keuangan konsolidasian periode 2016.

r. On January 4, 2016, the Company enteredinto a contract with PT Wijaya Karya (Persero)Tbk to construct reception dock related to theconstruction of coal fired turbine for anestimated contract price of Rp73,695,898,523,excluding VAT. Total advance paymentsunder this contract amounted toRp8,106,548,837 (US$615,064) as ofJune 30, 2016, and are presented as“Advances for Purchase of Property, Plant andEquipment - Third Parties” in the 2016consolidated statement of financial position.Total costs incurred under this contractamounting to Rp4,522,420,619 (US$332,165)as of June 30, 2016, are presented as"Machinery and Equipment UnderInstallation/Construction" under "Property,Plant and Equipment" in the 2016consolidated statement of financial position.

s. Pada tanggal 17 Februari 2016, Perusahaanmengadakan kontrak dengan PT Silkar Nationaluntuk membangun jembatan conveyor di atassungai CBL yang terkait dengan pembangunanturbin berbahan bakar batubara denganestimasi harga kontrak sebesarRp25.189.357.950, tidak termasuk PPN.Jumlah pembayaran uang muka berdasarkankontrak ini sebesar Rp1.385.414.688(AS$105.115) pada tanggal 30 Juni 2016, dandisajikan sebagai "Uang Muka untuk PembelianAset Tetap - Pihak Ketiga" pada laporan posisikeuangan konsolidasian periode 2016.

s. On February 17, 2016, the Company enteredinto a contract with PT Silkar National toconstruct a conveyor bridge over CBL riverrelated to the construction of coal fired turbinefor an estimated contract price ofRp25,189,357,950, excluding VAT. Totaladvance payments under this contractamounted to Rp1,385,414,688 (US$105,115)as of June 30, 2016, and are presented as“Advances for Purchase of Property, Plantand Equipment - Third Parties” in the 2016consolidated statement of financial position.

F-99

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

90

27. PERJANJIAN DAN IKATAN YANG SIGNIFIKAN(lanjutan)

27. SIGNIFICANT AGREEMENTS ANDCOMMITMENTS (continued)

t. Pada tanggal 26 Oktober 2015, Perusahaandan General Electric Capital Limitedmenandatangani Nota Kesepahaman berkaitandengan pembangunan fasilitas pembangkitlistrik berbahan bakar gas di Indonesia denganmenggunakan turbin gas model GE 9HA. NotaKesepahaman dimaksudkan sebagai kerangkadasar pembangunan fasilitas pembangkit listrikberbahan bakar gas dengan total kapasitasantara 1.100 MW-1.400 MW. Transaksi inimasih bergantung pada para pihak untukmencapai kesepakatan lebih lanjut yang akantertuang dalam sebuah perjanjian yangmengatur perincian atas syarat dan kondisi,termasuk kemampuan Perusahaan untukmendapatkan perjanjian pembelian daya listrikdengan PLN yang bertujuan untuk menyediakantambahan pasokan listrik.

t. On October 26, 2015, the Company andGeneral Electric Capital Limited entered into aMemorandum of Understanding (MoU) relatedto the development of a gas-fired combinedcycle electric generation facility in Indonesiausing GE 9HA gas turbine model. The MoUsets forth the intended framework for thedevelopment of a new gas-fired electricgeneration facility with total capacity of about1,100 MW-1,400 MW. This transaction issubject to the parties reaching definitiveagreements setting forth the details of termsand conditions, including the Company’sability to secure a power purchase agreementwith PLN for the supply of additional electricpower.

u. Pada tanggal 30 Juni 2016, Perusahaanmemiliki saldo fasilitas kredit yang tidak terpakaiberasal dari PT Bank UOB Indonesia, StandardChartered Bank dan Citibank, N.A., CabangJakarta masing-masing sebesarAS$53.000.000, AS$14.771.666 danAS$46.962.160.

u. As of June 30, 2016, the Company hasunused corporate credit facilities fromPT Bank UOB Indonesia, Standard CharteredBank and Citibank, N.A., Jakarta Branchamounting to US$53,000,000,US$14,771,666, and US$46,962,160,respectively.

v. Pada tanggal 30 Juni 2016, Perusahaanmemiliki komitmen belanja modal perkiraansebesar AS$63,1 juta yang berkaitan denganakuisisi, ereksi dan komisioning mesin danperalatan.

v. As of June 30, 2016, the Company has capitalexpenditure commitments amounting to aboutUS$63.1 million relating to the acquisition,erection and commissioning of machinery andequipment.

w. Pada tanggal 7 Desember 2015, Perusahaanmengadakan Perjanjian Jual Beli Batubaradengan PT Antang Gunung Meratus (AGM),dimana AGM bermaksud untuk menjualbatubara dari Konsesi Batubara AGM kepadaPerusahaan untuk bahan bakar PembangkitListrik Tenaga Uap Perusahaan. Perjanjian iniberlaku untuk jangka waktu 5 tahun efektifpada saat pengiriman batubara pertama.

w. On December 7, 2015, the Company enteredinto a Sale and Purchase of Coal Agreementwith PT Antang Gunung Meratus (AGM),whereby AGM intends to sell coal from AGM’sCoal Concession to the Company for the fuelof the Company’s Steam-Powered ElectricGenerator. This agreement shall be for aperiod of 5 years effective as of the firstdelivery of the coal.

F-100

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

91

28. LABA PER SAHAM 28. EARNINGS PER SHARE

Laba per saham dasar dihitung dengan membagilaba periode berjalan yang dapat diatribusikankepada pemilik entitas induk dengan rata-ratatertimbang jumlah saham yang beredar padaperiode yang bersangkutan.

Earnings per share is computed by dividing profitfor the period attributable to the equity holders ofthe parent entity by the weighted average numberof shares outstanding during the period.

Rincian perhitungan laba per saham dasar adalahsebagai berikut:

The details of earnings per share computation areas follows:

30 Juni/June 30, 31 Desember/December 31,

2016 2015 2015 2014 2013(Enam bulan/ (Enam bulan/ (Satu tahun/ (Satu tahun/ (Satu tahun/Six months) Six months) One year) One year) One year)

Laba periode berjalan 106.516.631 42.082.422 80.010.624 84.409.792 43.168.315 Profit for the period

Rata-rata tertimbang jumlah Weighted average number ofsaham yang beredar 14.628.704.681 14.478.440.000 14.478.440.000 14.478.440.000 14.478.440.000 outstanding shares

Laba per saham dasar Basic earnings per shareperiode berjalan 0,0073 0,0029 0,0055 0,0058 0,0029 for the period

Jumlah rata-rata tertimbang saham yangdigunakan pada perhitungan laba per saham diatas memperhitungkan pengaruh retroaktif atasdeklarasi dividen saham (Catatan 17).

The weighted average number of shares used inthe above earnings per share computationconsidered the retroactive effect of the declarationof stock dividends (Note 17).

F-101

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

92

29. ASET DAN LIABILITAS DALAM MATA UANGASING

29. ASSETS AND LIABILITIES IN FOREIGNCURRENCIES

Aset dan liabilitas moneter dalam mata uang asingdan nilainya setara dengan Dolar AS dihitungdengan menggunakan kurs yang berlaku padatanggal laporan posisi keuangan sebagai berikut:

The monetary assets and liabilities denominated inforeign currencies and their respective US Dollarequivalent computed using the prevailing rates ofexchange at statements of financial position datesare as follows:

30 Juni 2016/June 30, 2016 31 Desember 2015/December 31, 2015

Mata Uang Setara Mata Uang SetaraAsing/ Dolar AS/ Asing/ Dolar AS/

Foreign US Dollar Foreign US DollarCurrencies Equivalent Currencies Equivalent

Aset Assets

Kas dan setara kas Rp 544.078.820.625 41.280.638 Rp 318.193.345.914 23.065.844 Cash and cash equivalentsEUR€ 1.205.963 1.340.554 EUR€ 706.255 771.530

Piutang usaha Rp 878.435.700.865 66.649.143 Rp 973.928.480.168 70.600.107 Trade receivables

Piutang lain-lain Rp 1.732.060.236 131.416 Rp 1.114.101.746 80.761 Other receivables

Uang muka Rp 11.038.375.682 837.510 Rp 8.983.448.468 651.210 AdvancesYen 8.652.080 84.230 Yen 38.903.101 322.956EUR€ 180.448 200.586 EUR€ 308.438 336.945GBP 15.766 21.152 GBP 5.207 7.719Sin$ 13.186 9.775 Sin$ 2.968 2.098

Uang muka untuk pembelian aset tetap - Advances for purchase of property,pihak ketiga Rp 160.164.908.647 12.152.117 Rp 94.530.007.214 6.852.483 plant and equipment - third parties

EUR€ 30.950.903 34.405.040 EUR€ 30.892.864 33.748.131GBP 169.520 227.428 GBP 167.575 248.429

Investasi Rp 4.095.894.644 310.766 Rp - - Investments

Rekening bank yang dibatasi penggunaannya Rp 2.000.000.000 151.745 Rp 2.094.693.000 151.844 Restricted cash in banks

Tagihan pajak Rp 340.143.115.292 25.807.520 Rp 340.143.115.292 24.656.986 Claims for tax refund

Aset tidak lancar lainnya Rp 3.012.686.134 228.580 Rp 2.351.392.650 170.453 Other non-current assets

Jumlah Aset Rp 1.944.701.562.125 147.549.435 Rp 1.741.338.584.452 126.229.688 Total AssetsEUR€ 32.337.314 35.946.180 EUR€ 31.907.557 34.856.606GBP 185.286 248.580 GBP 172.782 256.148Yen 8.652.080 84.230 Yen 38.903.101 322.956Sin$ 13.186 9.775 Sin$ 2.968 2.098

Liabilitas Liabilities

Utang usaha: Trade payables:Pihak ketiga Rp 63.682.248.919 4.831.734 Rp 63.021.765.016 4.568.450 Third parties

EUR€ 2.059.371 2.289.198 EUR€ 239.482 261.616Yen 8.508.188 82.829 Yen 1.282.984 10.651GBP 10.621 14.249 GBP - -Sin$ 6.232 4.620 Sin$ 10.467 7.399

Pihak berelasi Rp 6.072.195.509 460.712 Rp 11.135.096 807 Related party

Utang lain-lain Rp 83.841.238.249 6.361.247 Rp 71.046.267.113 5.150.146 Other payablesEUR€ 56.888 63.237 EUR€ 53.386 58.320

Utang pajak Rp 134.231.214.686 10.184.462 Rp 241.659.913.325 17.517.935 Taxes payable

Beban akrual Rp 66.416.910.845 5.039.219 Rp 25.637.276.575 1.858.447 Accrued expensesGBP 4.315 5.789 GBP 33.981 50.376

Jaminan pelanggan Rp 533.829.398.468 40.502.989 Rp 523.264.822.076 37.931.484 Customers’ deposits

Estimasi liabilitas untuk Estimated liability forimbalan kerja Rp 312.703.952.000 23.725.642 Rp 312.074.010.000 22.622.255 employee benefits

Jumlah Liabilitas Rp 1.200.777.158.676 91.106.005 Rp 1.236.715.189.201 89.649.524 Total LiabilitiesEUR€ 2.116.259 2.352.435 EUR€ 292.868 319.936Yen 8.508.188 82.829 Yen 1.282.984 10.651GBP 14.936 20.038 GBP 33.981 50.376Sin$ 6.232 4.620 Sin$ 10.467 7.399

Aset (Liabilitas) Neto Rp 743.924.403.449 56.443.430 Rp 504.623.395.251 36.580.164 Net Assets (Liabilities)EUR€ 30.221.055 33.593.745 EUR€ 31.614.689 34.536.670GBP 170.350 228.542 GBP 138.801 205.772Sin$ 6.954 5.155 Sin$ (7.499) (5.301)Yen 143.892 1.401 Yen 37.620.117 312.305

F-102

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

93

31 Desember 2014/December 31, 2014 31 Desember 2013/December 31, 2013

Mata Uang Setara Mata Uang SetaraAsing/ Dolar AS/ Asing/ Dolar AS/

Foreign US Dollar Foreign US DollarCurrencies Equivalent Currencies Equivalent

Aset Assets

Kas dan setara kas Rp 749.357.966.299 60.237.780 Rp 1.338.541.720.505 109.815.548 Cash and cash equivalentsEUR€ 2.973.453 3.617.143 EUR€ 902.638 1.245.653

Piutang usaha Rp 734.145.409.592 59.014.904 Rp 696.988.941.876 57.182.622 Trade receivables

Piutang lain-lain Rp 1.105.483.311 88.865 Rp 3.523.216.407 289.049 Other receivablesEUR€ 68.862 83.769

Uang muka Rp 21.426.611.377 1.722.396 Rp 2.775.004.475 227.665 AdvancesYen 137.119.580 1.146.337 Yen 2.643.280 25.192EUR€ 176.758 215.022 EUR€ 34.200 47.197GBP 19.830 30.877

Uang muka untuk pembelian aset tetap - Advances for purchase of property,pihak ketiga Rp 139.438.853.788 11.208.911 Rp 196.237.195.351 16.099.532 plant and equipment - third parties

EUR€ 29.482.471 35.864.810 EUR€ 29.518.931 40.736.560

Rekening bank yang dibatasi penggunaannya Rp 11.134.144.858 895.028 Rp 10.003.722.226 820.717 Restricted cash in banks

Tagihan pajak Rp 119.469.959.100 9.603.694 Rp 119.469.959.373 9.801.457 Claims for tax refund

Aset tidak lancar lainnya Rp 1.392.135.200 111.908 Rp 1.909.635.200 156.669 Other non-current assets

Jumlah Aset Rp 1.777.470.563.525 142.883.486 Rp 2.369.449.395.413 194.393.259 Total AssetsEUR€ 32.701.544 39.780.744 EUR€ 30.455.769 42.029.410Yen 137.119.580 1.146.337 Yen 2.643.280 25.192GBP 19.830 30.877 GBP - -

Liabilitas Liabilities

Utang usaha: Trade payables:Pihak ketiga Rp 50.771.787.749 4.081.334 Rp 46.065.169.589 3.779.241 Third parties

EUR€ 1.540.139 1.873.547 EUR€ 137.647 189.955Sin$ 6.260 4.741 Sin$ 17.514 13.834GBP 2.121 3.303 GBP - -Aus$ 294 241 Aus$ - -

Pihak berelasi Rp 421.134.875 33.853 Rp 448.590.514 36.803 Related party

Utang lain-lain Rp 42.275.787.029 3.398.375 Rp 11.870.772.052 973.892 Other payablesEUR€ 133.415 162.297 EUR€ 63.988 88.305

Utang pajak Rp 217.904.812.160 17.516.464 Rp 70.359.052.260 5.772.340 Taxes payable

Beban akrual Rp 15.841.339.135 1.273.420 Rp 14.512.537.043 1.190.625 Accrued expensesGBP 33.981 52.911 GBP 33.981 56.027

Jaminan pelanggan Rp 461.563.692.483 37.103.191 Rp 401.300.043.759 32.923.129 Customers’ deposits

Estimasi liabilitas untuk Estimated liability forimbalan kerja Rp 260.306.573.760 20.924.973 Rp 179.971.328.529 14.765.061 employee benefits

Jumlah Liabilitas Rp 1.049.085.127.191 84.331.610 Rp 724.527.493.746 59.441.091 Total LiabilitiesEUR€ 1.673.554 2.035.844 EUR€ 201.635 278.260GBP 36.102 56.214 GBP 33.981 56.027Sin$ 6.260 4.741 Sin$ 17.514 13.834Aus$ 294 241 Aus$ - -

Aset (Liabilitas) Neto Rp 728.385.436.334 58.551.876 Rp 1.644.921.901.667 134.952.168 Net Assets (Liabilities)EUR€ 31.027.990 37.744.900 EUR€ 30.254.134 41.751.150Yen 137.119.580 1.146.337 Yen 2.643.280 25.192GBP (16.272) (25.337) GBP (33.981) (56.027)Sin$ (6.260) (4.741) Sin$ (17.514) (13.834)Aus$ (294) (241) Aus$ - -

29. ASET DAN LIABILITAS DALAM MATA UANGASING (lanjutan)

29. ASSETS AND LIABILITIES IN FOREIGNCURRENCIES (continued)

F-103

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

94

30. TUJUAN DAN KEBIJAKAN MANAJEMENRISIKO KEUANGAN

30. FINANCIAL RISK MANAGEMENT OBJECTIVESAND POLICIES

Risiko utama yang timbul dari instrumen keuanganPerusahaan dan Entitas Anak adalah risiko sukubunga, risiko pasar (termasuk risiko mata uang danrisiko harga), risiko kredit dan risiko likuiditas.Direksi Perusahaan menelaah dan menyetujuikebijakan untuk mengelola masing-masing risikoyang dirangkum di bawah ini:

The main risks arising from the Company andSubsidiaries’ financial instruments are interest raterisk, market risk (including currency risk and pricerisk), credit risk and liquidity risk. The Company’sBoard of Directors reviews and approves thepolicies for managing each of these risks which aresummarized below:

a. Risiko suku bunga a. Interest rate risk

Risiko suku bunga adalah risiko dimana nilaiwajar atau arus kas masa mendatang darisuatu instrumen keuangan akan berfluktuasiakibat perubahan suku bunga dan akanberdampak negatif terhadap kinerja keuanganPerusahaan dan Entitas Anak. Notes 2019yang diterbitkan oleh entitas anak, memilikibunga tetap sebesar 6,95% per tahun dan olehkarena itu terimbas dampak nilai wajar risikosuku bunga, tetapi tidak terimbas dampakrisiko suku bunga arus kas.

Interest rate risk is the risk that the fair value orfuture cash flows of a financial instrument willfluctuate because of the changes in interestrates and will adversely impact the financialresults of the Company and Subsidiaries. TheNotes 2019 issued by a subsidiary, bearinterest at a fixed interest rate of 6.95% perannum and therefore subject to fair valueinterest rate risk but not subject to cash flowinterest rate risk.

b. Risiko mata uang asing b. Foreign currency risk

Risiko mata uang asing adalah risiko dimananilai wajar arus kas masa mendatang darisuatu instrumen keuangan dalam mata uangasing akan berfluktuasi akibat perubahan nilaitukar.

Foreign currency risk is the risk that the fairvalue of future cash flows of a financialinstrument denominated in foreign currencywill fluctuate because of changes in exchangerates.

Mata uang fungsional Perusahaan dan EntitasAnak adalah Dolar Amerika Serikat.Perusahaan dan Entitas Anak memilikieksposur terhadap risiko valuta asing terkaitdengan biaya atas pembelian tertentu dalammata uang Rupiah dan mata uang lainnyayang berbeda dari mata uang fungsionalmereka. Perusahaan dan Entitas Anak tidakmemiliki kebijakan lindung nilai yang formaluntuk eksposur valuta asing. Namun, untukmengelola risiko mata uang asing danmenstabilkan arus kas, Perusahaandiperbolehkan untuk melakukan penyesuaiannilai tukar asing dalam tagihan kepadapelanggan untuk meminimalkan eksposurPerusahaan terhadap rugi kurs mata uangasing.

The Company and Subsidiaries’ functionalcurrency is the United States Dollar. TheCompany and Subsidiaries are exposed toforeign exchange risk as their costs of certainkey purchases are denominated in Rupiah andother currencies different from their functionalcurrency. The Company and Subsidiaries donot have any formal hedging policy for foreignexchange exposure. However, to manageforeign currency risks and stabilize cash flows,the Company is allowed to make foreignexchange rate adjustments in billings tocustomers which minimizes the Company’sexposure to foreign exchange losses.

F-104

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

95

30. TUJUAN DAN KEBIJAKAN MANAJEMENRISIKO KEUANGAN (lanjutan)

30. FINANCIAL RISK MANAGEMENT OBJECTIVESAND POLICIES (continued)

b. Risiko mata uang asing (lanjutan) b. Foreign currency risk (continued)

Pada tanggal 30 Juni 2016 dan tanggal31 Desember 2015, 2014 dan 2013, jika nilaitukar Rupiah terhadap Dolar Amerika Serikatterapresiasi/terdepresiasi 10% dengan semuavariabel lainnya dianggap tetap, labasebelum pajak penghasilan untuk periodeenam bulan yang berakhir pada tanggal30 Juni 2016 dan tahun yang berakhir padatanggal-tanggal 31 Desember 2015, 2014 dan2013 akan lebih tinggi/rendah masing-masingsebesar AS$9.027.227, AS$4.052.023,AS$5.855.188 dan AS$13.021.630, terutamasebagai akibat dari keuntungan/kerugian kursmata uang asing atas pengukuran kembali kasdan setara kas, piutang usaha dan piutanglainnya, rekening bank yang dibatasipenggunaannya, uang muka, utang usaha danutang lainnya, jaminan pelanggan dan bebanakrual dalam mata uang Rupiah.

As of June 30, 2016 and December 31, 2015,2014 and 2013, had the exchange rate of theRupiah against the United States Dollarappreciated/depreciated by 10% with all othervariables held constant, profit before incometax for the six-month period ended June 30,2016 and the years ended December 31,2015, 2014 and 2013 would have beenhigher/lower by US$9,027,227, US$4,052,023,US$5,855,188 and US$13,021,630,respectively, mainly as a result of foreignexchange gains/losses, on the remeasurementof cash and cash equivalents, trade and otherreceivables, restricted cash in banks,advances, trade and other payables,customers’ deposits and accrued expensesdenominated in Rupiah.

c. Risiko kredit c. Credit risk

Risiko kredit mengacu pada risiko bahwa mitrausaha tidak akan memenuhi kewajibankontraktualnya yang mengakibatkan kerugiankeuangan Perusahaan dan Entitas Anak.Perusahaan mengelola dan mengendalikanrisiko kredit dengan menetapkan batasanjumlah risiko bahwa Perusahaan bersediauntuk menerima untuk pelanggan individu danmitra usaha.

Credit risk refers to the risk that a counterpartywill default on its contractual obligationsresulting in financial loss to the Company andSubsidiaries. The Company manages andcontrols credit risk by setting limits on theamount of risk that the Company is willing toaccept for individual customers andcounterparties.

Hal ini merupakan kebijakan Perusahaanuntuk melakukan prosedur verifikasi untuksemua pelanggan dan mitra usaha yang akanbertransaksi dengan mereka. Selain itu, saldopiutang dipantau secara terus-menerus untukmengurangi eksposur piutang tidak tertagih.Piutang dari penjualan tenaga listrik, sampaibatas tertentu, ditutupi dengan jaminanpelanggan. Sebagai kebijakan, pemberitahuanpemutusan dikirim ke pelanggan jika tagihantidak dibayar dalam waktu 90 hari setelahtanggal jatuh tempo.

It is the Company’s policy to performverification procedures to all customers andcounterparties they are going to transact with.In addition, receivable balances are monitoredon an on-going basis to reduce exposure tobad debts. Receivables from sale of electricpower, to a certain extent, are covered bycustomers’ deposits. As a policy,disconnection notices are sent to customers ifbillings are not paid within 90 days after duedate.

F-105

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

96

30. TUJUAN DAN KEBIJAKAN MANAJEMENRISIKO KEUANGAN (lanjutan)

30. FINANCIAL RISK MANAGEMENT OBJECTIVESAND POLICIES (continued)

c. Risiko kredit (lanjutan) c. Credit risk (continued)

Sehubungan dengan penempatan dari kasdalam lembaga keuangan, Perusahaan danEntitas Anak melakukan transaksi hanyadengan lembaga keuangan yang sehat secarafinansial. Risiko kredit yang timbul dari asetkeuangan, yang meliputi kas dan kas di bank,rekening bank yang dibatasi penggunaannya,dan piutang lain-lain, berkaitan denganeksposur Perusahaan dan Entitas Anakterhadap kerugian dari kemungkinankegagalan pihak lain.

With respect to placements of cash in financialinstitutions, the Company and Subsidiariestransact only with financially sound financialinstitutions. Credit risk arising from thefinancial assets, which include cash in banks,restricted cash in banks, and otherreceivables, relates to the Company andSubsidiaries’ exposure to losses from thepossible default of the counterparties.

Pada tanggal 30 Juni 2016 dan tanggal31 Desember 2015, 2014 dan 2013, risikokredit maksimum Perusahaan dan EntitasAnak sebesar nilai tercatat aset monetermereka terutama terdiri dari bank dan setarakas, piutang usaha dan piutang lain-lain, uangmuka, pinjaman karyawan dan rekening bankyang dibatasi penggunaannya. Pada tanggal30 Juni 2016 dan tanggal 31 Desember 2015,2014 dan 2013, piutang usaha dari PLNmasing-masing adalah 36%, 45%, 44% dan46%, dari jumlah piutang usaha, yangmerupakan konsentrasi risiko kredit ataspiutang.

As of June 30, 2016 and December 31, 2015,2014 and 2013, the Company andSubsidiaries’ maximum credit risk amounted tothe carrying value of their monetary assetsmainly consisting of cash in banks and cashequivalents, trade and other receivables,advances, loans to employees, and restrictedcash in banks. As of June 30, 2016 andDecember 31, 2015, 2014 and 2013, tradereceivables from PLN constitute 36%, 45%,44% and 46%, of total trade receivables,respectively, constituting a concentration ofcredit risk on receivables.

Pada tanggal 30 Juni 2016 dan tanggal31 Desember 2015, 2014 dan 2013, kas dibank disimpan di PT Bank Negara IndonesiaTbk (Persero) yang terdiri dari masing-masing21%, 65%, 64% dan 71% dari jumlah kas dansetara kas, merupakan konsentrasi risiko kreditatas kas di bank.

As of June 30, 2016 and December 31, 2015,2014 and 2013, cash in banks maintained withPT Bank Negara Indonesia Tbk (Persero)represents 21%, 65%, 64% and 71% of totalcash and cash equivalents, respectively,constituting a concentration of credit risk oncash in banks.

Kas di bank disimpan di PT Bank UOBIndonesia dan PT Bank OCBC NISP Tbksebesar AS$146.025.401 merupakan 64% darijumlah kas dan setara kas pada tanggal30 Juni 2016, juga merupakan konsentrasirisiko kredit atas kas di bank.

Cash in banks maintained with PT Bank UOBIndonesia and PT Bank OCBC NISP Tbktotaling US$146,025,401 representing 64% oftotal cash and cash equivalents as of June 30,2016, also constitutes a concentration of creditrisk on cash in banks.

F-106

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

97

30. TUJUAN DAN KEBIJAKAN MANAJEMENRISIKO KEUANGAN (lanjutan)

30. FINANCIAL RISK MANAGEMENT OBJECTIVESAND POLICIES (continued)

d. Risiko likuiditas d. Liquidity risk

Risiko likuiditas adalah risiko bahwaPerusahaan dan Entitas Anak tidak akanmampu menyelesaikan semua liabilitas saatjatuh tempo. Perusahaan dan Entitas Anakmengelola risiko ini melalui pemantauan aruskas dengan mempertimbangkan pembayaranmasa mendatang dan penagihan. Perusahaandan Entitas Anak memantau dan menjagatingkat kas dan setara kas yang dianggapmemadai untuk membiayai operasionalmereka. Perusahaan dan Entitas Anak jugasecara rutin mengevaluasi arus kas proyeksidan aktual.

Liquidity risk is the risk that the Company andSubsidiaries will not be able to settle allliabilities as they fall due. The Company andSubsidiaries manage this risk throughmonitoring of cash flows in consideration offuture payments and collections. TheCompany and Subsidiaries monitor andmaintain a level of cash and cash equivalentsdeemed adequate to finance their operations.The Company and Subsidiaries also regularlyevaluate the projected and actual cash flows.

Kebutuhan likuiditas Perusahaan dan EntitasAnak secara historis timbul dari kebutuhanuntuk membiayai belanja modal terkait denganekspansi fasilitas listrik. Sebagian dari hasilpenerbitan Notes dialokasikan untukmembiayai ekspansi fasilitas listrik. Notes 2019diterbitkan pada bulan Februari 2012.

The liquidity requirements of the Company andSubsidiaries have historically arisen from theneed to finance capital expenditures related tothe expansion of power facilities. A portion ofthe proceeds of the Notes issuance wasallocated to finance expansion of powerfacilities. The Notes 2019 were issued inFebruary 2012.

Tabel berikut ini menyajikan profil jatuh tempoliabilitas keuangan Perusahaan dan EntitasAnak, termasuk bunga di masa mendatangterkait, (dalam ribuan) pada tanggal30 Juni 2016 dan tanggal 31 Desember 2015,2014 dan 2013 berdasarkan pembayarankontraktual yang tidak didiskontokan:

The following tables set out the maturity profileof the Company and Subsidiaries’ financialliabilities, including related future interest, (inthousands) as of June 30, 2016 andDecember 31, 2015, 2014 and 2013 based oncontractual undiscounted payments:

30 Juni 2016/June 30, 2016

Lebih dariDalam waktu 5 tahun/

1 tahun/Within 1-2 tahun/ 2-3 tahun/ 3-4 tahun/ 4-5 tahun/ More than Jumlah/1 year 1-2 years 2-3 years 3-4 years 4-5 years 5 years Total

Utang usaha danutang lain-lain 53.941 1.980 165 - - - 56.086 Trade and other payables

Beban akrual 19.009 - - - - - 19.009 Accrued expensesJaminan pelanggan - - - - - 40.503 40.503 Customers’ depositsUtang wesel 34.750 34.750 592.666 - - - 662.166 Notes payable

31 Desember 2015/December 31, 2015

Lebih dariDalam waktu 5 tahun/

1 tahun/Within 1-2 tahun/ 2-3 tahun/ 3-4 tahun/ 4-5 tahun/ More than Jumlah/1 year 1-2 years 2-3 years 3-4 years 4-5 years 5 years Total

Utang usaha danutang lain-lain 53.041 1.980 1.155 - - - 56.176 Trade and other payables

Beban akrual 14.463 - - - - - 14.463 Accrued expensesJaminan pelanggan - - - - - 37.931 37.931 Customers’ depositsUtang wesel 34.750 34.750 34.750 505.792 - - 610.042 Notes payable

F-107

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

98

30. TUJUAN DAN KEBIJAKAN MANAJEMENRISIKO KEUANGAN (lanjutan)

30. FINANCIAL RISK MANAGEMENT OBJECTIVESAND POLICIES (continued)

d. Risiko likuiditas (lanjutan) d. Liquidity risk (continued)

31 Desember 2014/December 31, 2014

Lebih dariDalam waktu 5 tahun/

1 tahun/Within 1-2 tahun/ 2-3 tahun/ 3-4 tahun/ 4-5 tahun/ More than Jumlah/1 year 1-2 years 2-3 years 3-4 years 4-5 years 5 years Total

Utang usaha danutang lain-lain 32.958 - - - - - 32.958 Trade and other payables

Beban akrual 13.878 - - - - - 13.878 Accrued expensesJaminan pelanggan - - - - - 37.103 37.103 Customers’ depositsUtang wesel 34.750 34.750 34.750 34.750 505.792 - 644.792 Notes payable

31 Desember 2013/December 31, 2013

Lebih dariDalam waktu 5 tahun/

1 tahun/Within 1-2 tahun/ 2-3 tahun/ 3-4 tahun/ 4-5 tahun/ More than Jumlah/1 year 1-2 years 2-3 years 3-4 years 4-5 years 5 years Total

Utang usaha danutang lain-lain 22.169 - - - - - 22.169 Trade and other payables

Beban akrual 13.871 - - - - - 13.871 Accrued expensesJaminan pelanggan - - - - - 32.923 32.923 Customers’ depositsUtang wesel 34.750 34.750 34.750 34.750 34.750 505.792 679.542 Notes payable

e. Risiko harga e. Price risk

Risiko harga adalah risiko dimana hargainstrumen keuangan Perusahaan, yaitu,investasi tersedia untuk dijual, akanberfluktuasi karena perubahan harga di pasarumum, tanpa memperhatikan apakahdisebabkan oleh faktor-faktor tertentu yangtimbul dari instrumen individu ataupenerbitnya, atau faktor-faktor yangmempengaruhi semua instrumen yangdiperdagangkan di pasar. Perusahaanmenginvestasikan kelebihan uang tunai hanyadalam surat berharga yang diterbitkan olehlembaga keuangan yang sehat secarakeuangan.

Price risk is the risk that the price of theCompany’s financial instruments, i.e.,available-for-sale investments, will fluctuatedue to changes in the general market price,regardless of whether caused by specificfactors attributable to the individualinstruments or their issuer, or factors affectingall the instruments that are traded in themarket. The Company invests its excess cashonly on securities issued by financially soundinstitutions.

f. Manajemen modal f. Capital management

Perusahaan memantau modal dengan rasiomodal, yang merupakan utang neto (utangberbunga dikurangi kas dan setara kas) danRasio Kemampuan Membayar Biaya Tetap(FCCR) (laba sebelum bunga, pajakpenghasilan, penyusutan dan amortisasi(EBITDA) dibagi dengan biaya tetap) yangtelah menjadi kontrol yang sangat penting bagimanajemen Perusahaan serta untukpemegang Notes. Perusahaan diharuskanuntuk mempertahankan FCCR tidak kurangdari 2,5:1 (Catatan 15).

The Company monitors capital using gearingratio, which is net debt (interest-bearing debtless cash and cash equivalents) and FixedCharge Coverage Ratio (FCCR) (earningsbefore interest, income tax, depreciation andamortization (EBITDA) divided by fixedcharges) which have become very importantcontrol figures for the Company’s managementas well as of the Notes holders.The Company is required to maintain FCCR ofnot less than 2.5:1 (Note 15).

F-108

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

99

30. TUJUAN DAN KEBIJAKAN MANAJEMENRISIKO KEUANGAN (lanjutan)

30. FINANCIAL RISK MANAGEMENT OBJECTIVESAND POLICIES (continued)

f. Manajemen modal (lanjutan) f. Capital management (continued)

Utang neto Perusahaan dan FCCR (tidakdiaudit) adalah sebagai berikut:

The Company’s net debt and FCCR(unaudited) are as follows:

31 Desember/December 31,30 Juni 2016/June 30, 2016 2015 2014 2013

Utang wesel (Catatan 15) 496.100.861 495.442.803 494.196.154 493.036.695 Notes payable (Note 15)Dikurangi kas dan Less cash and

setara kas (Catatan 3) 226.282.234 57.626.349 95.286.868 130.743.222 cash equivalents (Note 3)

Utang neto 269.818.627 437.816.454 398.909.286 362.293.473 Net debt

30 Juni/June 30, 31 Desember/December 31,

2016 2015 2015 2014 2013(Enam bulan/ (Enam bulan/ (Satu tahun/ (Satu tahun/ (Satu tahun/Six months) Six months) One year) One year) One year)

EBITDA 99.811.705 95.446.303 195.447.920 190.718.791 155.927.950 EBITDADibagi dengan biaya tetap 18.529.177 18.237.866 36.677.684 36.266.933 36.446.786 Divided by fixed charges

FCCR 5,39 5,23 5,33 5,26 4,28 FCCR

31. INSTRUMEN KEUANGAN 31. FINANCIAL INSTRUMENTS

Nilai wajar Fair values

Perusahaan dan Entitas Anak menggunakanhierarki berikut untuk menentukan danmengungkapkan nilai wajar dari instrumenkeuangan dengan teknik penilaian:

The Company and Subsidiaries use the followinghierarchy for determining and disclosing the fairvalue of financial instruments by valuationtechnique:

Tingkat 1: harga yang telah ditentukan (yangbelum disesuaikan) di pasar aktif untukaset dan liabilitas yang identik

Level 1: quoted (unadjusted) prices in activemarkets for identical assets or liabilities

Tingkat 2: teknik lainnya dimana semua masukanyang memiliki efek yang signifikanterhadap nilai wajar tercatat dapatdiobservasi, baik secara langsungmaupun tidak langsung

Level 2: other techniques for which all inputs whichhave a significant effect on the recordedfair value are observable, either directly orindirectly

Tingkat 3: teknik yang menggunakan masukanyang memiliki efek signifikan terhadapnilai wajar tercatat yang tidakberdasarkan data pasar yang dapatdiobservasi

Level 3: techniques which use inputs which have asignificant effect on the recorded fair valuethat are not based on observable marketdata

F-109

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

100

31. INSTRUMEN KEUANGAN (lanjutan) 31. FINANCIAL INSTRUMENTS (continued)

Nilai wajar (lanjutan) Fair values (continued)

Pada tanggal 30 Juni 2016 dan tanggal31 Desember 2015, 2014 dan 2013, semua nilaiwajar dari instrumen keuangan telah ditentukanuntuk menggunakan teknik penilaian tingkat satu(1) dan tingkat dua (2), kecuali untuk investasidimana nilai wajar telah ditentukan menggunakanteknik penilaian tingkat satu (1). Tidak adapemindahan antara pengukuran nilai wajar tingkatsatu (1) dan tingkat dua (2).

As of June 30, 2016 and December 31, 2015, 2014and 2013, the fair values of financial instrumentswere determined using level one (1) and level two(2) valuation techniques, except for investmentswhereby the fair values were determined usinglevel one (1) valuation technique. There were notransfers between level one (1) and level two (2)fair value measurements.

Pada tanggal 30 Juni 2016 dan tanggal31 Desember 2015, 2014 dan 2013, rincian dariinstrumen keuangan adalah sebagai berikut:

As of June 30, 2016 and December 31, 2015, 2014and 2013, the details of financial instruments areas follows:

Aset dan liabilitas keuangan lancar Current financial assets and liabilities

Aset dan liabilitas keuangan lancar Perusahaandan Entitas Anak terdiri dari kas dan setara kas,piutang usaha dan piutang lainnya, investasi,rekening bank yang dibatasi penggunaannya,utang usaha dan utang lainnya dan beban akrual.Nilai tercatat aset dan liabilitas keuangan lancarPerusahaan dan Entitas Anak mendekati nilai wajarkarena sifat dasar jangka pendek dari akuntersebut. Investasi diukur pada nilai wajar denganmengacu pada investasi dari harga pasar yangberedar pada tanggal laporan posisi keuangan.

The Company and Subsidiaries’ current financialassets and liabilities consist of cash and cashequivalents, trade and other receivables,investments, restricted cash in banks, trade andother payables, and accrued expenses. Thecarrying values of the Company and Subsidiaries’current financial assets and liabilities approximatetheir fair values due to the short-term nature of theaccounts. Investments are measured at fair valueby reference to the investments’ quoted marketprice as of the statement of financial position date.

Aset dan liabilitas keuangan tidak lancar Non-Current financial assets and liabilities

Perbandingan jumlah tercatat dan nilai wajar asetdan liabilitas keuangan tidak lancar pada tanggal30 Juni 2016 dan tanggal 31 Desember 2015, 2014dan 2013 adalah sebagai berikut:

A comparison of the carrying amounts and fairvalues of non-current financial assets and liabilitiesas of June 30, 2016 and December 31, 2015, 2014and 2013 is as follows:

30 Juni 2016/ 31 Desember 2015/June 30, 2016 December 31, 2015

Nilai Tercatat/ Nilai Wajar/ Nilai Tercatat/ Nilai Wajar/Carrying Values Fair Values Carrying Values Fair Values

Aset Keuangan Financial AssetsPinjaman karyawan 116.160 87.300 70.718 54.972 Loans to employeesAset tidak lancar lainnya 259.308 122.218 264.886 168.379 Other non-current assets

Liabilitas Keuangan Financial LiabilitiesUtang wesel 496.100.861 518.750.000 495.442.803 515.315.000 Notes payableJaminan pelanggan 40.502.989 40.502.989 37.931.484 37.931.484 Customers’ deposits

F-110

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

101

31. INSTRUMEN KEUANGAN (lanjutan) 31. FINANCIAL INSTRUMENTS (continued)

Aset dan liabilitas keuangan tidak lancar (lanjutan) Non-Current financial assets and liabilities(continued)

31 Desember 2014/ 31 Desember 2013/December 31, 2014 December 31, 2013

Nilai Tercatat/ Nilai Wajar/ Nilai Tercatat/ Nilai Wajar/Carrying Values Fair Values Carrying Values Fair Values

Aset Keuangan Financial AssetsPinjaman karyawan 62.769 49.911 64.530 49.749 Loans to employeesAset tidak lancar lainnya 198.073 110.578 231.800 145.389 Other non-current assets

Liabilitas Keuangan Financial LiabilitiesUtang wesel 494.196.154 528.750.000 493.036.695 514.026.254 Notes payableJaminan pelanggan 37.103.191 37.103.191 32.923.129 32.923.129 Customers’ deposits

Nilai wajar pinjaman karyawan dan aset tidaklancar lainnya telah dihitung denganmendiskontokan arus kas di masa depan yangdiharapkan dengan tingkat bunga yang berlaku.

The fair values of the loans to employees and othernon-current assets were calculated by discountingthe expected future cash flows at prevailing interestrates.

Nilai wajar dari Notes 2019 ditentukan olehreferensi harga pasar yang telah ditentukan padatanggal laporan posisi keuangan.

The fair value of the Notes 2019 was determinedby reference to the Notes’ quoted market price asof the statement of financial position date.

Nilai wajar dari jaminan pelanggan tidak dapatditentukan karena tiap pengembalian terkaitdengan penghentian layanan yang tidak dapatdiprediksi. Jaminan pelanggan disajikan sebesarharga perolehan.

The fair value of customers’ deposits is notdeterminable since the timing of each refund islinked to the cessation of service which is notreasonably predictable. Customers’ deposits arepresented at historical cost.

Nilai wajar didefinisikan sebagai jumlah dimanainstrumen tersebut dapat dipertukarkan dalamtransaksi saat ini antara pihak yang bersedia dalamtransaksi wajar (arm’s-length transaction), selaindalam penjualan paksa atau likuidasi. Nilai wajartelah diperoleh dari harga pasar yang telahditentukan atau model diskonto arus kas yangsesuai.

Fair value is defined as the amount at which theinstrument could be exchanged in a currenttransaction between knowledgeable willing partiesin an arm's-length transaction, other than in aforced or liquidation sale. Fair values are obtainedfrom quoted market prices or discounted cash flowmodels as appropriate.

\

F-111

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

102

32. CATATAN ATAS LAPORAN ARUS KASKONSOLIDASIAN

32. NOTES TO THE CONSOLIDATED STATEMENTSOF CASH FLOWS

Pengungkapan tambahan untuk informasi arus kasadalah sebagai berikut:

The supplemental disclosures of cash flowinformation are as follows:

30 Juni/June 30, 31 Desember/December 31,

2016 2015 2015 2014 2013(Enam bulan/ (Enam bulan/ (Satu tahun/ (Satu tahun/ (Satu tahun/Six months) Six months) One year) One year) One year)

Bunga dan beban pendanaanyang dibayarkan selamaperiode berjalan, termasuk Interest and financing chargesbunga yang dikapitalisasi paid during the period, includingke aset tetap masing-masing interest capitalized to property,sebesar AS$10.095.308 plant and equipment ofdan AS$8.414.504 untuk US$10,095,308 andperiode enam bulan yang US$8,414,504 for the six-monthberakhir pada tanggal-tanggal periods ended June 30, 201630 Juni 2016 dan 2015 dan and 2015, respectively, \masing-masing sebesar and US$11,836,065,AS$11.836.065, AS$6.770.264 US$6,770,264 anddan AS$2.615.016 untuk tahun US$2,615,016yang berakhir pada tanggal- for the years endedtanggal 31 Desember 2015, December 31, 2015,2014 dan 2013 17.871.119 17.625.840 35.431.035 35.107.474 35.890.659 2014 and 2013, respectively

Reclassification of electricalReklasifikasi peralatan listrik yang equipment not used in

tidak digunakan dalam kegiatan operations to property, plantoperasi ke aset tetap 100.925 235.788 361.877 438.680 485.583 and equipment

Application of advances againstAplikasi dari uang muka purchase of property, plant

terhadap pembelian aset tetap 1.055.426 5.593.439 7.384.485 2.954.709 359.838 and equipment

Dividen saham - - 136.936.240 - 65.111.816 Stock dividends

33. TUJUAN PENYUSUNAN LAPORAN KEUANGANKONSOLIDASIAN

33. PURPOSE OF CONSOLIDATED FINANCIALSTATEMENTS

Laporan keuangan konsolidasian ini disusundengan tujuan untuk dicantumkan dalam dokumenpenawaran sehubungan dengan rencanapenawaran umum utang efek entitas anakPerusahaan di Singapore Exchange SecuritiesTrading Limited, serta tidak ditujukan, dan tidakdiperkenankan untuk digunakan, untuk tujuan lain.

These consolidated financial statements wereprepared solely for inclusion in the offeringmemorandum in connection with the proposedoffering of the debt securities of the Company’ssubsidiary on the Singapore Exchange SecuritiesTrading Limited, and is not intended to be, andshould not be, used for any other purpose.

F-112

The original consolidated financial statements included hereinare in the Indonesian language.

PT CIKARANG LISTRINDO TBKDAN ENTITAS ANAKNYA

CATATAN ATASLAPORAN KEUANGAN KONSOLIDASIAN

Tanggal 30 Juni 2016 (Tidak Diaudit)dan Untuk Periode Enam Bulan yang Berakhir

pada Tanggal-tanggal 30 Juni 2016 dan 2015 (TidakDiaudit) dan Tanggal 31 Desember 2015, 2014

dan 2013, dan Untuk Tahun yang Berakhir padaTanggal-tanggal Tersebut

(Disajikan dalam Dolar Amerika Serikat,Kecuali Dinyatakan Lain)

PT CIKARANG LISTRINDO TBKAND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

As of June 30, 2016 (Unaudited)and For the Six-Month Periods Ended

June 30, 2016 and 2015 (Unaudited) andAs of December 31, 2015, 2014 and 2013,

and For the Years Then Ended(Expressed in United States Dollar,

Unless Otherwise Stated)

103

34. KONTINJENSI 34. CONTINGENCY

PT Cikarang Listrindo Tbk merupakan tergugatketiga, dalam gugatan yang diajukan oleh penduduklokal yang memprotes bahwa tanah mereka diambilalih penguasaan hak oleh Perusahaan. Perusahaandigugat oleh individu-individu yang menggugatpenguasaan hak atas bidang tanah yang telahdisetujui untuk pemakaian tanah sebagai terminalpengangkutan batu bara untuk pembangkit listrikberbahan batu bara Perusahaan, dan menuntutganti rugi dengan jumlah sebesar Rp53.503.500.000(AS$4.059.446) dan menuntut perintahpelarangan/penyitaan atas pemakaian tanahtersebut.

PT Cikarang Listrindo Tbk is presently a thirddefendant to a lawsuit filed by local residents(plaintiff) who protested that their land was claimedby the Company. The lawsuit was filed byindividuals claiming occupation rights to the parcelsof land which have been approved for use as acoal-loading terminal for the coal-fired power plant,and seeking damages of about Rp53,503,500,000(US$4,059,446) and an injunction prohibitingfurther use of the lands.

Manajemen berpendapat bahwa gugatan tersebuttidak memiliki dasar hukum, sehingga tidak adapencadangan atas gugatan tersebut dalam laporankeuangan konsolidasian.

Management believes that the claim has no legalbasis, accordingly, no provision for such claim wasrecognized in the consolidated financialstatements.

35. PENYELESAIAN DAN PENERBITAN LAPORANKEUANGAN KONSOLIDASIAN

35. COMPLETION AND ISSUANCE OFCONSOLIDATED FINANCIAL STATEMENTS

Manajemen Perusahaan bertanggung jawab ataspenyusunan dan penyajian wajar laporankeuangan konsolidasian ini sesuai dengan StandarAkuntansi Keuangan di Indonesia, yang telahdiselesaikan dan diotorisasi untuk diterbitkan olehDireksi Perusahaan pada tanggal 29 Juli 2016.

The Company’s management is responsible for thepreparation and fair presentation of theseconsolidated financial statements in accordancewith Indonesian Financial Accounting Standards,which were completed and authorized for issuanceby the Board of Directors of the Company onJuly 29, 2016.

F-113

REGISTERED OFFICE OF THE ISSUER

Listrindo Capital B.V.De entree 99-197

1101 HE Amsterdam ZuidoostThe Netherlands

REGISTERED OFFICE OF CIKARANG LISTRINDO

PT Cikarang Listrindo Tbk17th Floor, World Trade Center 1,

Jl. Jend. Sudirman Kav 29-31,Jakarta 12920, Indonesia

TRUSTEE PAYING AND TRANSFER AGENT ANDREGISTRAR

The Bank of New York Mellon101 Barclay Street

New York, NY 10286USA

The Bank of New York Mellon101 Barclay Street

New York, NY 10286USA

LEGAL ADVISERSTo the Issuer and the Parent Guarantor

as to New York law

Shearman & Sterling12th Floor, Gloucester Tower

The Landmark15 Queen’s Road Central

Hong Kong

as to Indonesian law(excluding Indonesian tax law):Assegaf Hamzah & PartnersMenara Rajawali, 16th Floor

J1. DR. Ide Anak Agung Gde AgungLot #5.1

Kawasan Mega KuninganJakarta 12950

Indonesia

To the Initial Purchasers To the Trustee, Paying andTransfer Agent and Registrar

As to New York law As to Indonesian Law As to New York law

Davis Polk & Wardwell18th Floor

The Hong Kong Club Building3A Chater Road

Hong Kong

Hiswara Bunjamin & TandjungGedung BRI II, Lantai 23

J1. Jend. Sudirman Kav. 44-46Jakarta 10210

Indonesia

Clifford Chance27th Floor

Jardine HouseOne Connaught Place

Hong Kong

LEGAL ADVISORAS TO DUTCH LAW

(excluding Dutch tax law)

INDEPENDENT PUBLICACCOUNTANTS

SINGAPORELISTING AGENT

Linklaters LLPWTC Amsterdam

Zuidplein 1801077 XV Amsterdam

The Netherlands

Purwantono, Sungkoro & Surja(A member firm of Ernst &

Young Global Limited)Indonesia Stock Exchange Building

Tower 2, 7th FloorJI. Jend. Sudirman Kav. 52-53

Jakarta 12190Indonesia

Allen & Gledhill LLPOne Marina Boulevard

#28-00Singapore 018989