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PT SILOAM INTERNATIONAL HOSPITALS Tbk

AND SUBSIDIARIES

Interim Consolidated Financial Statements

As of March 31,2017 (Unaudited) and December 31, 2016 (Audited)

For the 3 (Three) Months Period Ended March 31, 2017 and 2016 (Unaudited)

Final Draft/13-Jul-17, For Discussion Only Paraf: paraf:

PT SILOAM INTERNATIONAL HOSPITALS Tbk AND SUBSIDIARIES Table of Content Page

Directors’ Statement Letter

Interim Consolidated Financial Statements

As of March 31, 2017 (Unaudited) and December 31, 2016 (Audited) and

For the 3 (Three) Months Period Ended March 31, 2017 and 2016 (Unaudited)

Interim Consolidated Statements of Financial Position 1 Interim Consolidated Statements of Profit or Loss and Other Comprehensive Income 3 Interim Consolidated Statements of Changes in Equity 4 Interim Consolidated Statements of Cash Flows 5 Notes to the Interim Consolidated Financial Statements 6

The accompanying notes form an integral part of these consolidated financial statements

Final Draft/13-Jul-17, 1 Paraf:

PT SILOAM INTERNATIONAL HOSPITALS Tbk AND SUBSIDIARIES INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION As of March 31, 2017 (Unaudited) and December 31, 2016 (Audited) (Expressed In Full Rupiah, unless otherwise stated)

Notes 31 March 2017 31 December 2016

Rp Rp

ASSETS

CURRENT ASSETS

Cash and Cash Equivalents 3, 10, 32, 33 662,940,646,347 740,436,843,020

Trade Receivables 4, 33

Third Parties 806,239,900,006 770,523,847,641

Related Parties 10 4,542,403,297 5,454,393,488

Other Current Financial Assets 5, 33 94,358,680,954 152,108,827,407

Inventories 6 168,027,741,439 178,381,106,468

Prepaid Taxes 7.a -- --

Prepaid Expenses 8 62,409,067,056 59,924,874,983

Total Current Assets 1,798,518,439,099 1,906,829,893,007

NON-CURRENT ASSETS

Advances 9 235,913,007,013 240,812,776,545

Due from Related Parties Non-Trade 10, 33 464,252,992 525,498,069

Property and Equipment 12 1,871,856,362,437 1,693,868,662,869

Goodwill 13.a 378,081,542,898 288,276,804,990

Intangible Assets 13.b 44,709,940,762 45,094,906,096

Deffered Tax Assets 7.c 39,286,195,840 35,805,117,323

Other Non-Current Assets 11 4,220,277,928 4,475,891,180

Total Non-Current Assets 2,574,531,579,870 2,308,859,657,072

TOTAL ASSETS 4,373,050,018,969 4,215,689,550,079



PT SILOAM INTERNATIONAL HOSPITALS Tbk AND SUBSIDIARIES INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Continued) As of March 31, 2017 (Unaudited) and December 31, 2016 (Audited) (Expressed In Full Rupiah, unless otherwise stated)

Catatan 31 March 2017 31 December 2016

Rp Rp

LIABILITIES AND EQUITY

LIABILITIES

CURRENT LIABILITIES

Trade Payable - Third Parties 14, 33 329,097,706,978 314,126,455,716

Short-Term Bank Loans 17, 33 159,797,654 928,373,155

Accrued Expenses 10, 16, 33 242,094,748,321 234,211,191,714

Advances from Patients 16,562,715,921 14,947,459,266

Taxes Payable 7.a 49,155,188,786 40,313,390,569

Other Current Financial Liabilities 15, 33 113,981,014,427 80,114,380,612

Current Portion of Long Term Liabilities

Bank Loans 17, 33 7,700,184,013 7,482,980,034

Finance Lease Obligation 18, 33 25,749,142,696 21,994,996,558

Deffered Gain on Sale and Leaseback Transactions 19 11,897,445,548 11,897,445,548

Total Current Liabilities 796,397,944,344 726,016,673,172

NON-CURRENT LIABILITIES

Long-Term Bank Loans 17, 33 7,876,073,284 9,884,512,480

Due to Related Parties Non-Trade 10, 33 197,506,875 197,506,875

Finance Lease Obligation 18, 33 146,951,309,409 105,042,006,950

Deffered Gain on Sale and Leaseback Transactions 19, 34.a 92,140,011,515 95,114,372,903

Long-Term employment Benefit Liabilities 20 116,843,236,942 116,843,236,942

Deffered Tax Liabilities 7.c 38,530,668,050 33,521,244,654

Total Non-Current Liabilities 402,538,806,075 360,602,880,804

TOTAL LIABILITIES 1,198,936,750,419 1,086,619,553,976

EQUITY

Equity Attributable to Owners of the Parent

Capital Stock: par Value Rp100 per Share

Authorized Capital: 4,000,000,000 Shares

Issued and Fully Paid: 1,156,100,000 Shares 21 130,061,250,000 130,061,250,000

Additional Paid-in Capital - Net 22 2,570,240,064,693 2,570,240,064,693

Difference in Value from Non-Controlling Interest 23 (25,748,354,393) (25,748,354,393)

Retained Earnings 487,739,092,082 447,325,145,213

Total Equity Attributable to owners of the Parent 3,162,292,052,382 3,121,878,105,513

Non-Controlling Interests 25, 34 11,821,216,168 7,191,890,590

TOTAL EQUITY 3,174,113,268,550 3,129,069,996,103

TOTAL LIABILITIES AND EQUITY 4,373,050,018,969 4,215,689,550,079



PT SILOAM INTERNATIONAL HOSPITALS Tbk AND SUBSIDIARIES INTERIM CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME As of March 31, 2017 (Unaudited) and December 31, 2016 (Audited) (Expressed In Full Rupiah, unless otherwise stated)

2017 2016

Notes (3 Months) (3 Months)

Rp Rp

OPERASI YANG DILANJUTKAN

REVENUE 26 1,411,855,067,796 1,253,836,289,707

COST OF REVENUE 27 (1,014,065,248,599) (879,257,016,781)

GROSS PROFIT 397,789,819,197 374,579,272,926

Operating Expenses 10, 28 (312,195,037,712) (293,359,875,733)

Other - Net (16,083,237,801) (7,333,633,475)

PROFIT FROM OPERATION 69,511,543,684 73,885,763,718

Interest Income 29 6,089,145,354 892,415,455

Financial Charges 29 (9,269,043,679) (15,533,670,795)

PROFIT BEFORE TAX 66,331,645,359 59,244,508,378

Tax Expenses 7.b (21,288,372,912) (19,024,780,700)

PROFIT FOR THE YEAR 45,043,272,447 40,219,727,678

PROFIT FOR THE YEAR ATTRIBUTABLE TO:

Owners of the Parent Entity 40,413,946,869 40,515,021,610

Non-Controlling Interest 4,629,325,578 (295,293,932)

45,043,272,447 40,219,727,678

TOTAL COMPREHENSIVE INCOME

FOR THE YEAR ATTRIBUTABLE TO:

Owners of the Parent Entity 40,413,946,869 40,515,021,610

Non-Controlling Interest 4,629,325,578 (295,293,932)

45,043,272,447 40,219,727,678

EARNINGS\ PER SHARE

Basic, Profit for the Period Attributable to

Shareholders of Common Shares of the Parent Company 31 34.74 35.04

Catatan terlampir merupakan bagian yang tidak terpisahkan dari laporan keuangan interim konsolidasian secara keseluruhan

Final Draft/13-Jul-17, 4 paraf:

PT SILOAM INTERNATIONAL HOSPITALS Tbk AND SUBSIDIARIES INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY As of March 31, 2017 (Unaudited) and December 31, 2016 (Audited) (Expressed In Full Rupiah, unless otherwise stated)

Capital Stock

Paid-in Capital

Excess of Par

Difference in Value

from Transactions

between Entities

Under Common

Control - Net

Difference in Value

from Change in

Equity Transaction

of Subsidiary

TotalDifference in Value

from Transaction

with Non

Controlling Interest

Appropriated Unappropriated Other

Comprehensive

Income

Note Rp Rp Rp Rp Rp Rp Rp Rp Rp Rp Rp Rp

BALANCE AS OF DECEMBER 31, 2015 115,610,000,000 1,312,722,950,000 (11,329,652,726) (11,728,781,953) 1,289,664,515,321 (25,748,354,393) 23,100,000,000 341,390,437,227 -- 1,744,016,598,155 (4,064,970,291) 1,739,951,627,864

Change in Equity for the Period March 31, 2016

Non-controllinig Interest -- -- -- -- -- -- -- -- -- -- 2,624,866,586 2,624,866,586

Total Income Current Year -- -- -- -- -- -- -- 40,515,021,610 -- 40,515,021,610 (295,293,932) 40,219,727,678

BALANCE AS OF MARCH 31, 2016 115,610,000,000 1,312,722,950,000 (11,329,652,726) (11,728,781,953) 1,289,664,515,321 (25,748,354,393) 23,100,000,000 381,905,458,837 -- 1,784,531,619,765 (1,735,397,637) 1,782,796,222,128

Change in Equity for the Period December 31, 2016

Limited Public

Offering I - Net of Shares

Issuance Costs 22 14,451,250,000 1,280,427,731,933 -- -- 1,280,427,731,933 -- -- -- -- 1,294,878,981,933 -- 1,294,878,981,933

Difference in Value of Transaction between

Entities Under Common Control 23 -- -- 147,817,439 -- 147,817,439 -- -- -- -- 147,817,439 -- 147,817,439

General Reserves 24 -- -- -- -- -- -- 22,000,000 (22,000,000) -- -- -- --

Total Income Current Year -- -- -- -- -- -- -- 45,385,693,773 -- 45,385,693,773 10,471,676,707 55,857,370,480

Total Other Comprehensive Income

for the year -- -- -- -- -- -- -- (3,066,007,397) -- (3,066,007,397) (1,544,388,480) (4,610,395,877)

BALANCE AS OF DECEMBER 31, 2016 130,061,250,000 2,593,150,681,933 (11,181,835,287) (11,728,781,953) 2,570,240,064,693 (25,748,354,393) 23,122,000,000 424,203,145,213 -- 3,121,878,105,513 7,191,890,590 3,129,069,996,103

Change in Equity for the Period March 31, 2017

Total Income Current Year -- -- -- -- -- -- -- 40,413,946,869 -- 40,413,946,869 4,629,325,578 45,043,272,447

BALANCE AS OF MARCH 31, 2017 130,061,250,000 2,593,150,681,933 (11,181,835,287) (11,728,781,953) 2,570,240,064,693 (25,748,354,393) 23,122,000,000 464,617,092,082 -- 3,162,292,052,382 11,821,216,168 3,174,113,268,550

Equity Attributable to Owners of the Parent

Additional Paid-in Capital Net Total EquityNon-controlling

Interest

Total Equity

Attributable to

Owners of the

Parent

Retained Earning

Catatan terlampir merupakan bagian yang tidak terpisahkan dari laporan keuangan interim konsolidasian secara keseluruhan

Final Draft/13-Jul-17, 5 paraf:

PT SILOAM INTERNATIONAL HOSPITALS Tbk AND SUBSIDIARIES INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS As of March 31, 2017 (Unaudited) and December 31, 2016 (Audited) (Expressed In Full Rupiah, unless otherwise stated)

Notes 2017 2016

(3 Months) (3 Months)

Rp Rp

CASH FLOWS FROM OPERATING ACTIVITIES

Cash Receipts from Customers 1,384,198,874,622 1,344,914,222,795

Payments to Suppliers and Third Parties (853,911,837,558) (993,667,376,557)

Payments to Management and Employees (201,918,358,770) (208,964,707,043)

Cash Flows from Operations 328,368,678,294 142,282,139,195

Financial Charges Payment - Net 1,676,898,703 (3,811,560,447)

Payments of Taxes (10,745,206,666) (4,019,285,179)

Net Cash Provided by Operating Activities 319,300,370,331 134,451,293,569

CASH FLOWS FROM INVESTING ACTIVITIES

Advances for Purchase of Property and Equipment and Others (16,950,698,665) (16,345,043,905)

Property and Equipment and Software

Acquisition 12, 13.b (168,201,490,022) (94,027,760,628)

Receipts the Disvestment of Subsidiaries (96,000,000,000) --

Placement Restricted Fund (80,000,000,000) --

Net Cash Used in Investing Activities (361,152,188,687) (110,372,804,533)

CASH FLOWS FROM FINANCING ACTIVITIES

Shares Issuance Cost (1,534,991,622) --

Payments for Bank Loan 17 (2,559,810,718) (3,623,111,095)

Payment for Obligation Under Finance Lease 18 (31,543,241,944) --

Net Cash Provided by (Used in) Financing Activities (35,638,044,284) (3,623,111,095)

NET DECREASE IN CASH AND CASH EQUIVALENTS (77,489,862,640) 20,455,377,941

Effect of Foreign Exchange on Cash and Cash Equivalents (6,334,033) (9,871,547)

at the End of the Year

CASH AND CASH EQUIVALENTS AT BEGINNING PERIOD 3 740,436,843,020 159,848,063,872

CASH AND CASH EQUIVALENTS AT ENDING PERIOD 3 662,940,646,347 180,293,570,266

Additional Information activities that are not affecting cash flows presented in Note 35

These interim consolidated financial statements are originally issued in Indonesian language

PT SILOAM INTERNATIONAL HOSPITALS Tbk AND SUBSIDIARIES NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS As of March 31,2017 (Unaudited) and December 31, 2016 (Audited) and For the 3 (Three) Months Period Ended March 31, 2017 and 2016 (Unaudited) (Expressed In Full Rupiah, Unless Otherwise Stated)

Final Draftt/July 13, 2017 6 Paraf:

1. General

1.a. The Company’s Establishment

PT Siloam International Hospitals Tbk. (“the Company”) was established under the name of PT Sentralindo Wirasta on August 3, 1996 based on the Deed of Establishment No. 3, which was made in the presence of Myra Yuwono, S.H., a notary in Sukabumi. The deed of establishment was approved by the Minister of

Justice of the Republic of Indonesia in his decree No. C2-8639.HT.01.01.TH.’96. dated August 27, 1996 and

was published in the State Gazette No. 97, Supplement No. 9518 on December 3, 1996.

The Company’s articles of association have been amended several times, and the latest was by Notarial Deed No. 131 dated December 28, 2016, made in the presence of Sriwi Bawana Nawaksari, S.H., M.Kn., a notary in Tangerang, to change the Company’s articles of association one of them is the Company’s purpose and objective. The change in articles of association was approved by the Minister of Law and Human Rights of the Republic of Indonesia in his decree No. AHU-AH.01.03-0024519 dated Januari 18, 2017.

In accordance with Article 3 of the Company's articles of association, the Company's principal activity is engage in healthcare provision, including setting up and managing hospitals, polyclinics, health facilities and supporting infrastructure, and engaging in government healthcare programs.

The Company commenced commercial operations in 2010 after the restructuring of PT Lippo Karawaci Tbk’s hospital units. The Company's principal activity is engage in healthcare provision, including setting up and managing hospitals. The operation of hospital units of the Company and the subsidiaries (the Group) are in several cities on the island of Sumatera, Java, Bali, Kalimantan, Sulawesi and Nusa Tenggara Timur.

The Company’s head office is located at Gedung Fakultas Kedokteran UPH Lt.32. Jl. Boulevard Jend.Sudirman No.15, Tangerang 15810, Banten – Indonesia. The parent entity of the Company is PT Megapratama Karya Persada and the ultimate parent entity is PT Lippo Karawaci Tbk.

1.b. The Company’s Initial Public Offering

The Company’s initial public offering of 156,100,000 shares was declared effective by the Indonesian Financial Services Authority in its letter No. S-260/D.04/2013 dated September 2, 2013, and was listed in the Indonesian Stock Exchange on September 12, 2013.

Limited Public Offering I On November 22, 2016, the Company received the effective statement from the Board of Commisioners of Financial Services Authority, Chief Executive Functioning as Capital Market Supervisor No. S-680/D.04/2016 related to Limited Public Offering I in order to issue Pre-emptive Rights (HMETD) amounting to 144,512,500 shares with par value of Rp100 per share with offering price Rp9,000 per shares.

The excess amount received from the issuance of shares over its par value amounting to Rp1,280,427,731,933 is recorded in the “Additional Paid-in Capital” account,after deducting shares issuance cost of Rp5,733,518,067 (Note 22).


PT SILOAM INTERNATIONAL HOSPITALS Tbk AND SUBSIDIARIES NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Continued) As of March 31,2017 (Unaudited) and December 31, 2016 (Audited) and For the 3 (Three) Months Period Ended March 31, 2017 and 2016 (Unaudited) (Expressed In Full Rupiah, Unless Otherwise Stated)

Final Draft/July 13, 2017 7 Paraf:

1.c. The Group’s Structure The Company has control in subsidiaries as follows:

Domicile Main Direct Indirect Year of

Business Ownership Ownership Starting

Percentage Percentage Operation

March 31, 2017 December 31, 2016

Rp Rp

PT Aritasindo Permaisemesta Jakarta Trading, Development 99.99% -- -- 48,811,896 48,917,346

Mining, Agriculture,

Service, Land Transportation

Printing and Industry

PT Perdana Kencana Mandiri Jakarta Development, Trading, Industry, 99.99% -- -- 519,803,207 519,803,207

Land Transportation, Workshop

Printing, Agriculture, Mining

and Services

PT Multiselaras Anugerah Tangerang Development, Trading and 99.99% -- -- 546,277,336 546,771,529

Services

PT Nusa Medika Perkasa Jakarta Healthcare -- 59.69% -- 976,740,479 969,209,139

PT Siloam Graha Utama dan Entitas Anak Jakarta Trading, Development, 99.99% -- -- 107,573,719,948 108,439,944,424

Land Transportation,

and Services

PT East Jakarta Medika Bekasi Healthcare -- 79.84% 2002 107,493,258,592 108,359,458,952

PT Guchi Kencana Emas and Subsidiary Jakarta Development and Services 99.99% -- -- 83,214,013,655 80,258,515,598

PT Golden First Atlanta Jambi Healthcare and -- 83.00% 2004 83,198,086,457 80,242,529,624

Pharmacy

PT Praw ira Tata Semesta and Subsidiary Jakarta Trading, Development, 99.98% -- -- 221,101,887,309 215,227,239,448

Industry, Mining,


Agriculture, Printing, Workshop

and Services except

Services Legal and Tax

PT Balikpapan Damai Husada Balikpapan Healthcare including Hospital -- 79.71% 2008 181,941,200,577 176,066,488,296

Clinic, Health Centre,

Polyclinic and Other Related

Services

PT Siloam Emergency Serv ices Tangerang Healthcare 99.99% -- 2013 1,033,139,918 1,033,085,251

PT Medika Harapan Cemerlang Indonesia Tangerang Trading, Industry and Services 99.99% -- 2013 1,807,870,075 1,864,775,887

PT Pancaw arna Semesta and Subsidiary Tangerang Trading, Development, 99.99% -- -- 74,791,135,897 65,873,096,175

Priniting and Services

PT Diagram Healthcare Indonesia Depok Hospital services, Clinic and -- 80.00% 2006 44,234,449,190 35,316,349,675

Policlinic, Medical Treatment

Clinic and Other Related

Services

PT Adamanisa Kary a Sejahtera Jakarta Trading, Development, 99.90% -- -- 1,465,901,960 1,100,115,602

Printing and Services

PT Brenada Kary a Bangsa Tangerang Trading, Development, 99.99% -- -- 679,358,224 679,374,833


PT Harmoni Selaras Indah Tangerang Trading, Development, 99.99% -- -- 679,024,537 679,041,500


PT Kusuma Primadana and Subsidiary Tangerang Trading, Development, 99.99% -- -- 87,922,108,734 85,924,324,875

Printing and Healthcare

including Hospital Services,

Clinic, Policlinic

and Other related Services

PT Adijay a Buana Sakti and Subsidiary Tangerang Services, Development, -- 80.00% -- 87,887,328,740 85,889,479,875

Trading, Workshop,


Industry, Printing and

Agriculture

PT Siloam Sumsel Kemitraan Tangerang Trading, Development and -- 56.00% -- 8,100,466,038 8,100,500,170

Serv ice

PT RS Siloam Hospital Sumsel Palembang Healthcare incllude Hospital, -- 70.00% 2012 87,826,790,924 85,828,832,927

(d/h PT Kary atama Indah Sentosa) Clinic, and Health Center,

Polyclinic and Other Related

Services

PT Optimum Kary a Persada Jakarta Services, Development, 99.90% -- -- 1,085,333,793 1,085,346,800

Trading, Workshop,


Industry, Printing and

Agriculture

PT Rosela Indah Cipta Tangerang Trading, Development, 99.99% -- -- 679,024,537 679,041,500


PT Sembada Kary a Megah Tangerang Trading, Development, 99.99% -- -- 687,031,306 687,042,657


PT Trijay a Makmur Bersama Tangerang Trading, Development, 99.99% -- -- 679,024,537 679,041,500


PT Visindo Galax i Jay a Tangerang Trading, Development, 99.99% -- -- 5,099,345,914 5,099,324,833

Real Estate, Industry, Printing,

Agribusiness, Services, and

Transport

Subsidiary

Total Assets

31 Desember/








Rp Rp

PT Tunggal Pilar Perkasa dan Entitas Anak Tangerang Trading, Development, 99.99% -- -- 1,699,508,948,693 1,572,477,869,070


PT Tirtasari Kencana Serang Healthcare Services, including -- 99.99% -- 1,231,168,361 1,231,327,718

Hospitals, Clinic, Health Center,

and other related services

PT Gramari Prima Nusa Medan Healthcare and Hospitals -- 99.99% 2014 153,118,993,725 145,157,648,596

PT Krisolis Jay a Mandiri Kupang Healthcare Services including -- 99.99% 2014 227,149,209,625 209,909,351,744

Hospitals, Clinic, health center,


PT Kusuma Bhakti Anugerah Ambon Healthcare Services including -- 99.99% -- 7,269,784,493 7,269,740,914



PT Agung Cipta Ray a Semarang Healthcare Services including -- 99.99% -- 1,050,586,115 1,050,601,500



PT Bina Cipta Semesta Padang Healthcare Services including -- 99.99% -- 1,083,259,250 1,083,274,974



PT Mega Buana Bhakti Bangka Healthcare Services including -- 99.99% -- 33,902,422,859 16,200,631,257



PT Taruna Perkasa Megah Yogy a Healthcare Services including -- 99.99% -- 131,396,184,645 125,786,007,747



PT Tataka Bumi Kary a Bogor Healthcare Services including -- 99.99% -- 82,953,666,299 55,484,364,731



PT Tataka Kary a Indah Bandung Healthcare Services including -- 99.99% -- 938,675,939 938,600,891



PT Siloam Medika Cemerlang Tangerang Trading, Development, -- 99.99% 2013 23,041,816,039 22,417,735,725

Real Estate, Industry, Printing,

Agribusiness and Services

PT Koridor Usaha Maju and Subsidiary Tangerang Trading, Development, -- 99.99% -- 500,614,657,341 512,680,187,938

Printing, Agribusiness

PT Medika Sarana Traliansia and Subsidiary Badung, Bali Hospital Public -- 99.99% 1998 254,799,978,383 266,098,754,091

Serv ice

PT Trisaka Raksa Waluy a Badung Healthcare Services including -- 99.99% 2012 143,439,733,976 140,840,417,690



PT Sentra Sejahtera Utama Sorong Hospital Sevice -- 99.99% -- 700,750,000 700,000,000

Clinic, Policlinic,

and Treatment Clinic

PT Bumi Unggul Persada Tangerang Healthcare Services including -- 99.99% -- 682,248,938 680,807,484



PT Berlian Cahay a Indah Tangerang Healthcare Services including -- 99.99% 2014 152,868,404,131 121,832,847,628



PT Rashal Siar Cakra Medika Jakarta Healthcare Services including -- 99.99% 2008 88,456,376,405 80,497,672,152



Subsidiary

Total Assets

31 Desember/




The dormant entities will be provided for hospitals expansion to the future.





Rp Rp

PT Mulia Pratama Cemerlang Tangerang Healthcare Services including -- 99.99% -- 57,180,684,700 50,239,900,879


Polyclinic and

another related services

PT Medika Rescue International Tangerang Trading and Serv ices -- 99.99% -- 7,224,197,585 4,234,503,626

d/h PT Kary a Pesona Cemerlang Trading and Services

PT Indah Kemilau Abadi Jember Healthcare Services including -- 99.99% -- 3,300,430,282 2,743,286,996


Polyclinic and


PT Siloam Radiology Indonesia**) Tangerang Healthcare Services including -- 99.99% 2016 32,021,784,497 33,431,888,045

d/h PT Persada Dunia Semesta Hospitals, Clinic, health center,

Polyclinic and


PT Inti Pratama Medika Kediri Healthcare Services including -- 99.99% -- 661,712,781 661,719,224


Polyclinic and


PT Sentra Sehat Sejahtera Manado Healthcare Services including -- 99.99% -- 7,191,931,933 2,856,882,273


Polyclinic and


PT Genta Ray a Internusa Batu Healthcare Services including -- 99.99% -- 2,413,335,566 2,412,958,483


Polyclinic and


PT Sembilan Raksa Dinamika Jakarta Healthcare Services including -- 99.99% 2016 203,120,057,521 184,204,840,193


Polyclinic and


PT Saritama Mandiri Zamrud Palangkaray a Healthcare Services including -- 99.99% -- 700,000,000 700,000,000


Polyclinic and


PT Gempita Nusa Sejahtera Tangerang Healthcare Services including -- 99.99% -- 700,000,000 700,000,000


Polyclinic and


PT Ary amedika Teguh Tunggal Tangerang Healthcare Services including -- 99.99% -- 700,000,000 700,000,000


Polyclinic and


PT Lintas Buana Jay a Nusa Tenggara Healthcare Services including -- 99.99% 2016 68,852,963,416 61,854,149,553

Timur Hospitals, Clinic, health center,

Polyclinic and


PT Bina Bahtera Sejati Baubau Healthcare Services including -- 99.99% 2016 59,463,166,160 56,232,874,006


Polyclinic and


PT Lintang Laksana Utama Kota Lubuk Healthcare Services including -- 99.99% -- 600,000,000 600,000,000

Linggau Hospitals, Clinic, health center,

Polyclinic and


PT Ciptakary a Tirta Cemerlang Bekasi Hospitals, Clinic, health center, -- 99.99% -- 700,000,000 700,000,000

Polyclinic and


PT Lishar Sentosa Pratama***) Bekasi Healthcare Services -- 99.99% 2002 7,529,326,936 --

PT Mahkota Buana Selaras dan Entitas Anak Tangerang Trading, Dev elopment 99.99% -- -- 395,831,188,122 192,020,536,718

Printing and Serv ice

PT Kirana Puspa Cemerlang *) Jember Healthcare Services including -- 99.99% -- 6,835,248,599 125,000,000


Polyclinic and


PT Grha Ultima Medika***) Mataram Healthcare Services -- 99.99% 2015 83,781,622,886 --

*) Established on 2016

**) effective since August 24, 2016

***) Acquired in 2017

Subsidiary

Total Assets

31 Desember/




1.d. Board of Commissioners, Directors, Employees and Audit Committee Based on Notarial Deed No. 52 dated March 23, 2016, made in the presence of Sriwi Bawana Nawaksari, S.H., M.Kn., notary in Tangerang, which has been accepted by the Ministry of Law and Human Rights of the Republic of Indonesia through notification No. AHU-AH.01.03-0039805 dated April 11, 2016 and based on Notarial Deed No.9 dated June 12, 2015, made in the presence of Nurlani Yusup, S.H., M.Kn., notary in Tangerang, which has been accepted by the Ministry of Law and Human Rights of the Republic of Indonesia through notification No. AHU-AH.01.03-0942314 dated June 17, 2015, the composition of the Board of Commisioners and Directors as of March 31, 2017 and December 31, 2016 are as follows:

The audit committee composition as of March 31, 2017 and December 31, 2016 are as follows:

As of March 31, 2017 and December 31, 2016, the Company’s Corporate Secretary is Ratih Hadiwinoto and Cindy Riswantyo. Head of internal audit is Gunawan HP.


Board of Commissioners

President Commissioner Lee Heok Seng Lee Heok Seng

Vice President Commissioner Romeo Fernandez Lledo --

Commissioner Theo Leo Sambuaga Theo Leo Sambuaga

Jenny Kuistono Jenny Kuistono

John Nicholas Pitsonis John Nicholas Pitsonis

Andy Nugroho Purwohardono Andy Nugroho Purwohardono

Independent Commissioner Farid Harianto Farid Harianto

Dr. Niel Byron Nielson Dr. Niel Byron Nielson

Jonathan Limbong Parapak Jonathan Limbong Parapak

Directors

President Director Ketut Budi Wijaya Romeo Fernandez Lledo *)

Vice President Director Caroline Riady Caroline Riady

Director Grace Frelita Indradjaja Grace Frelita Indradjaja

Anang Prayudi Anang Prayudi

Andry Andry

Atiff Ibrahim Gill Atiff Ibrahim Gill

Budi Raharjo Legowo Budi Raharjo Legowo

Norita Alex Norita Alex

Ryanto Marino Tedjomulja Ryanto Marino Tedjomulja **)

Tati Hartawan *)

*) Independent Director

**) Effectively on January 9, 2017

March 31, 2017 31-Dec

Audit Committee

Chairman : Jonathan Limbong Parapak : Farid Harianto

Members : Herbudianto : Lim Kwang Tak

: Achmad Kurniadi : Siswanto Pramono




As of March 31, 2017 and December 31, 2016, the Group have 7,889 and 7,568 permanent employees, respectively (unaudited).

2. Summary of Significant Accounting Policies

2.a. Compliance with the Financial Accounting Standards

The interim consolidated financial statements were prepared and presented in accordance with Indonesian Financial Accounting Standards which include the Statement of Financial Accounting Standards (PSAK) and Interpretation of Financial Accounting Standards (ISAK) issued by the Financial Accounting Standard Board – Indonesian Institute of Accountant (DSAK – IAI), and regulations in the Capital Market include Regulations of Financial Sevices Authority/Capital Market and Supervisory Board and Financial Institution (OJK/Bapepam-LK) No. VIII.G.7 regarding guidelines for the presentation of financial statements, decree of Chairman of Bapepam-LK No. KEP-347/BL/2012 regarding presentation and disclosure of financial statements of the issuer or public company.

2.b. Basis of Measurement and Preparation of Consolidated Financial Statements

The interim consolidated financial statements have been prepared and presented based on going concern assumption and accrual basis of accounting, except for the consolidated statements of cash flows. Basis of measurement in preparation of these interim consolidated financial statements is the historical costs concept, except for certain accounts which have been prepared on the basis of other measurements as described in their respective policies. Historical cost is generally based on the fair value of the consideration given in exchange for assets.

The consolidated statements of cash flows are prepared using the direct method by classifying cash flows into operating, investing and financing activities.

The presentation currency used in the preparation of the interim consolidated financial statements is Indonesian Rupiah which is the functional currency of the Group. Each entity in the Group determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency.

2.c. New and Revised Statements and Interpretation of Financial Accounting Standards Effective in the

Current Year The following are revision, amendments and adjustments of standards and interpretation of standard issued by DSAK - IAI and effectively applied for the year starting on or after January 1, 2016, are as follows: New Standard

SFAS No. 70: “Accounting for Assets and Tax Amnesty Liabiltas”

New Standard

SFAS No. 110: “Accounting for Sukuk”

Amendments

SFAS No. 4: “Separate Financial Statements”

SFAS No.15: “Investment in Associates and Joint Arrangements”

SFAS 16 ”Property and equipment about Clarification of Acceptable Methods of Depreciation and Amortization”,

SFAS 19 ”Intangible Asset about Clarification of Acceptable Methods of Depreciation and Amortization”,

SFAS No. 24: “Employee Benefits”

SFAS No. 65: “Consolidation Financial Statements”

SFAS No. 66: “Joint Arrangements” SFAS No. 67: “Disclosures of Interest in Other Entities”




ISAK No. 30: “Collection”

Adjustments

SFAS No. 5: “Operating Segments”

SFAS No. 7: “Related Party Disclosures”

SFAS No. 13: “Investments Property”

SFAS No. 16: “Property and equipment”

SFAS No. 19: “Intangible Assets”

SFAS No. 22: “Business Combination”

SFAS No. 25: “Accounting Policies, Changes in Accounting Estimates and Errors”

SFAS No. 53: “Share-based Payments”

SFAS No. 68: “Fair Value Measurement” The following is the impact of the revision, amendments and adjustments in accounting standards that are relevant and significant to the consolidated financial statements of the Group among others:

SFAS No. 5 (Adjustment 2015): “Operating Segments” The impact of the adjustment of this standard include:

a. Additional disclosure requirements of establishing the criteria for the combine of the operating segments and the brief description of the operating segments have been combined and the assessed economic indicators in determining of the combined operating segments have similar economic characteristics,

b. Organize disclosures of the reconciliation of the reportable total assets segments to the entity’s assets only if the assets segment are regularly provided to the chief operating decision maker, and

c. Changes previous terminology is "reportable segments of the entity" to "the entity’s reportable segments "and "based on differences in products and services" to "based on products and services".

The adoption of the adjustment standard had no material effect to the consolidated financial statements.

SFAS No. 7 (Adjustment 2015): “Related Party Disclosures” The impact of adjustment of this standard include:

a. Addition of requirements related parties, An entity is related to the reporting entity if entity or members of the same group which that entity

is related to others, provide member of the key management personnel of the reporting entity or of a parent of the reporting entity.

b. Requiring that a reporting entity disclose the payment of key management personnel services provided by the entity management and clarifies that the reporting entity is not required to disclose the compensation paid of the entity management to its employees or Director, and

c. Changing the terminology of "the effective date" to be "effective date and transitional requirement". The Group had adopted the adjustment standard and had completed the requested requirements.

SFAS No. 13 (Adjustment 2015): “Investments Property” Adjustment to this standard emphasize the difference between investment property and owner-occupied

property and emphasize the need for consideration on the determination of whether the acquisition of the investment property is classified as an asset acquisition or a business combination within the scope of SFAS No. 22.


SFAS No. 15 (Amendment 2015): “Investment in Associates and Joint Arrangements” Adjustment to this standard, add that an entity which is not an investment entity having an interest in

investment entity and joint venture that is investment entity, then when applying the equity method can




maintain the fair value measurement that applied by the investment entity an associate or joint venture in subsidiary where the investment entity an associate or joint venture are concerned.

The adoption of the amendment standard had no material effect to the interim consolidated financial

statements.

SFAS No. 16 (Adjustment 2015): “Property and equipment” Adjustment of this standard, add an explanation that:

a. The reduction is expected to occur in the future on the selling price of goods produced using an property and equipment indicates presumption of the technical or commercial obsolescence of the assets, and

b. Depreciation method based on the income generated by activities that use an asset is not

appropriate. The adoption of the adjustment standard had no material effect to the interim consolidated financial

statements.

SFAS No. 19 (Adjustment 2015): “Intangible Assets” The Impact of the adjustments of this standard includes:

a. Provide additional explanation that the reduction is expected to occur in the future on the selling price of goods produced using an intangible asset indicates presumption of the technical or commercial obsolescence of the assets,

b. There is a presumption that the use of methods of amortization based on the revenues generated by activities using the intangible assets allegedly not appropriate because it reflects factors that are not directly related to the use of economic benefits contained in the intangible assets,

c. Basic selection the amortization of intangible assets is if its reflect the pattern of the estimated economic benefits of the asset, and

d. In circumstances where the dominant inherent barrier factor in an intangible asset is the achievement of revenue threshold, then the revenue generated can be used as a proper basis for amortization.

The adoption of the adjustment standard had no material effect to the interim consolidated financial

statements.

SFAS No. 22 (Adjustment 2015): “Business Combination” The adjustments of this standard is added the explanation that:

a. SFAS No. 22 is not applied in accounting for the forming of a joint arrangement in the financial statements of joint arrangement it self,

b. The obligation to pay contingent consideration that meet the definition of financial instruments classified as financial liabilities or as equity, and

c. The entire contingent consideration which is not an equity, both financial and non-financial are measured at fair value at each reporting date, with the changes in fair value are recognized in profit or loss.

The adoption of the adjustment standard had no material effect to the interim consolidated financial

statement.

SFAS No. 24 (Amendment 2015): “Employee Benefits” The amendment to this standard specifies that attribution dues from workers or third parties depend on

whether the contribution rate is set based on the number of year of services. If the dues based on the number of year services, then the dues attributable to the period of services using the same method with attribution required. If the amount of contributions does not depend on the number of year of services then the contribution is recognized as a reduction of the cost of services in the period when the related




services provided by workers.

The adoption of the amendment standard had no material effect to the interim consolidated financial statements.

SFAS No. 25 (Adjustment 2015): “Accounting Policies, Changes in Accounting Estimates and Errors” Change in SFAS No. 25 (Adjustment 2015), mainly to incorporate the changes of editorial in the

previous standard.

The adoption of the adjustment of the standard had no material effect to the interim consolidated financial statements.

SFAS No. 65 (Amendment 2015): “Consolidation Financial Statements” The amendment to this standard provides criteria that an investment entity consolidated its

subsidiaries only if both of the following criteria are met: a. The subsidiaries are not an investment entity, and b. The main purpose of the subsidiary is to provide services related to investment activities of its

investment entity. The adoption of the amendment standard had no material effect to the consolidated financial statements.

SFAS No. 66 (Amendment 2015): “Joint Arrangements” The amendment to the standard includes:

a. That all of the principles for business combinations within the scope of SFAS No. 22 "Business Combinations" and SFAS other requirements disclosures applied to the acquisition of the initial interest in joint operations and for the acquisition of extra importance in a joint operation, but if the joint operator retains joint control when it acquired extra importance in a joint operation of the same kind of interest that has been previously owned not remeasured, and

b. This amendment does not apply to (i) the formation of a joint operation if all the parties participating in joint operations only contribute assets or group of assets is not a business for joint operations in its formation and (ii) the acquisition of interests in joint operations when the parties share joint control of the main controller.

The adoption of the amendment standard had no material effect to the interim consolidated financial statements.

SFAS No. 67 (Amendment 2015): “Disclosures of Interest in Other Entities” The amendment to this standard is to clarify that the scope of the standard is not applied to the

separate financial statements that its an investment entity and measure its subsidiaries at fair value through profit or loss.

The adoption of the amendment standard had no material effect to the consolidated financial statements.

SFAS No. 68 (Adjustment 2015): “Fair Value Measurement” Adjustments to this standards is to clarify that the exception portfolio, which allows an entity to

measure the fair value of the group's financial assets and financial liabilities on a net basis, applied to all contracts (including non-financial contracts) within the scope of SFAS No. 55.





2.d. Principles of Consolidation The interim consolidated financial statements include financial statement of the Company and subsidiaries as stated in Note 1.c.

A subsidiary is an entity controlled by the Group, that is the Group exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its current ability to direct the entity’s relevant activities (power over the investee).

The existence and effect of substantive potential voting rights that the Group has the practical ability to exercise (ie substantive rights) are considered when assessing whether the Group controls another entity.

The Group’s consolidated financial statements incorporate the results, cash flows, assets and liabilities of the Company and all of its directly and indirectly controlled subsidiaries. Subsidiaries are consolidated from the effective date of acquisition, which is the date on which the Group effectively obtains control of the acquired business, until that control ceases.

A parent entity prepares interim consolidated financial statements using uniform accounting policies for like transactions and other events in similar circumstances. All intragroup transactions, balances, income, expenses and cash flows are eliminated in full on consolidation to reflect the financial position as a single business entity.

The Group attributed the profit and loss and each component of other comprehensive income to the owners of the parent and non-controlling interest even though this results in the non-controlling interests having a deficit balance. The Group presents non-controlling interest in equity in the consolidated statement of financial position, separately from the equity owners of the parent.

Changes in the parent’s ownership interest in a subsidiary that do not result in loss of control are equity transactions (ie transactions with owners in their capacity as owners). When the proportion of equity held by non-controlling interest change, the Group adjusted the carrying amounts of the controlling interest and non-controlling interest to reflect the changes in their relative interest in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the parent.

If the Group loses control, the Group: a. Derecognizes the assets (including goodwill) and liabilities of the subsidiary at their carrying

amounts at the date when control is lost; b. Derecognizes the carrying amount of any non-controlling interests in the former subsidiary at the

date when control is lost (including any components of other comprehensive income attributable to them);

c. Recognizes the fair value of the consideration received, if any, from the transaction, event or circumstances that resulted in the loss of control;

d. Recognizes any investment retained in the former subsidiary at fair value at the date when control is lost;

e. Reclassifies to profit or loss, or transfer directly to retained earnings if required by other Accounting Standards, the amount recognized in other comprehensive income in relation to the subsidiary;

f. Recognizes any resulting difference as a gain or loss attributable to the parent.




2.e. Foreign Currency Transactions and Balances In preparing financial statements, each of the entities within the Group records by using the currency of the primary economic environment in which the entity operates (“the functional currency”). The functional currency of the Company and all of the subsidiaries is Rupiah.

For presentation purposes of consolidated financial statements, assets and liabilities of Group at reporting date are translated at the closing rate at statement of consolidated financial position date, while revenues and expenses are translated using average rate for the period. All resulting exchange differences shall be recognized in other comprehensive income.

Transactions during the period in foreign currencies are recorded in Rupiah by applying to the foreign currency amount the spot exchange rate between Rupiah and the foreign currency at the date of transactions. At the end of reporting period, foreign currency monetary items are translated to Rupiah using the closing rate, ie middle rate of Bank of Indonesia at March 31, 2017 and December 31, 2016 as follows:

Gains and losses from foreign exchange differences arising from foreign currency transactions into Rupiah were charged to profit or loss.

2.f. Cash and Cash Equivalent and Restricted Fund

Cash and cash equivalents are cash on hand, cash in banks (demand deposits) and time deposits with maturity periods of three months or less at the time of placement that are not used as collateral or are not restricted.

Restricted deposits will be used for repayment of currently maturing comitment related to terms of the acquisition agreement are presented as “Restricted Funds” under the Current Assets section of the consolidated Statements of financial position.

2.g. Related Parties Transactions and Balances

A related party is a person or an entity that is related to the reporting entity: a. A person or a close member of that person’s family is related to a reporting entity if that person:

(i) has control or joint control over the reporting entity; (ii) has significant influence over the reporting entity; or (iii) is a member of the key management personnel of the reporting entity or of a parent of the

reporting entity. b. An entity is related to the reporting entity if any of the following conditions applies:

(i) The entity and the reporting entity are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others;

(ii) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member);

(iii) Both entities are joint ventures of the same third party; (iv) One entity is a joint venture of a third entity and the other entity is an associate of the third entity; (v) The entity is a post-employment benefit plan for the benefit of employees of either the reporting

entity, or an entity related to the reporting entity. If the reporting entity in itself runs such a plan, the sponsoring entity are also related to the reporting entity;


Rp Rp

1 United States Dollar (USD) 13,321 13,436

1 Euro (EUR) 14,228 14,162

1 Singapore Dollar (SGD) 9,532 9,299

1 Australian Dollar (AUD) 10,186 9,724




(vi) The entity is controlled or jointly controlled by a person identified in (a); (vii) A person identified in (a) (i) has significant influence over the entity or is a member of the key

management personnel of the entity (or a parent of the entity); or (viii) A person identified in (a) (i) has significant influence over the entity or is a member of the key

management personnel of the entity (or a parent of the entity).

All significant transactions and balances with related parties are disclosed in the relevant Notes.

2.h. Inventories Inventories are carried at the lower of cost and net realizable value. The cost of inventories comprise all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition.Cost is determined using the weighted average method. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

The amount of any write-down of inventories to net realizable value and all losses of inventories shall be recognized as an expense in the period the write-down or loss occurs. The amount of any reversal of any write-down of inventories, arising from an increase in net realizable value, is recognized as a reduction in the amount of inventories recognized as an expense in the period in which the reversal occurs.

2.i. Prepaid Expenses

Prepaid expenses are amortized over the period benefitted using straight line method. 2.j. Property and Equipment

Property and equipment are initially recognized at cost, which comprises its purchase price and any cost directly attributable in bringing the assets to the location and condition necessary for it to be capable of operating in the manner intended by management.

When applicable, the cost may also comprises the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period for purposes other than to produce inventories during that period.

After initial recognition, property and equipment, except land, are carried at its cost less any accumulated depreciation, and any accumulated impairment losses.

Lands are recognized at its cost and are not depreciated.

Depreciation of fixed assets starts when its available for use and its computed by using straight-line method based on the estimated useful lives of assets as follows:

Years

Building, Infrastructure and Renovations 4 - 20 Equipment and Medical Supplies 4 - 8 Furniture, Fixtures and Office Equipment 4 - 10 Vehicles 5




The cost of repairs and maintenance is charged to operation as incurred while significant renovations and additions are capitalized. The carrying value of the part replaced was written-off. Self-constructed fixed assets are presented as part of the fixed assets under “Asset in Construction” and are stated at its cost. All costs, including borrowing costs, incurred in relation with the construction of these assets are capitalized as part of the cost of assets in construction. Cost of assets in construction shall exclude any internal profits, cost of abnormal amounts of wasted material, labour, or other resources incurred. The accumulated costs will be transferred to the respective fixed assets items at the time the asset is completed or ready for use and are depreciated since the operation. The carrying amount of an item of fixed assets is derecognized on disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arrising from derecognition (that determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item) is included in profit or loss when item is derecognized. At the end of each reporting period, the Company made regular review of the useful lives, residual values, depreciation method and residual life based on the technical conditions.

2.k. Leases The determination of whether a lease agreement or an agreement containing with a lease is a finance lease or an operating lease depends on the substance of transaction rather than the form of the contract at the inception date of lease. A lease is classified as finance leases if it transfers substantially all the risks and rewards incidental to ownership. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership. Group as Lessee At the commencement of the lease term, Group recognizes finance leases as assets and liabilities in the statement of financial position at amounts equal to the fair value of leased asset or the present value of the minimum lease payments, if the present value is lower than fair value. Assessment is determined at the inception of the lease. The discount rate to be used in calculating the present value of the minimum lease payments is the interest rate implicit in the lease, if this is practicable to determine, if not, the lessee's incremental borrowing is used. Any initial direct costs of the lessee are added to the amount recognized as an asset. The depreciation policy for depreciable leased assets is consistent with the fixed assets that are owned. Under an operating lease, Group recognizes the lease payments as an expense on a straight-line basis over the lease term. Group as lessor Group recognizes assets under a finance lease as a receivable in the statement of financial position at an amount equal to the net investment in the lease. Collection of lease receivable is treated as principal payments and finance income. The recognition of finance income is based on a pattern reflecting a constant periodic rate of return on Group's net investment in the finance lease as lessor. Group presents assets subject to operating leases in the statement of financial position according to the nature of the asset. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized as an expense over the lease term on the same basis as the lease income. Contingent rents, if any, be recognized as income in the period incurred. Lease




income from operating leases is recognized as revenue on a straight-line basis over the lease term. Sale and Leaseback Assets sold under a sale and leaseback transaction are accounted for as follows:

If the sale and leaseback transaction results in a finance lease, any excess of sales proceeds over the carrying amount of the asset is deferred and amortized over the lease term.

If the sale and leaseback transaction result in an operating lease and the transaction is established at fair value, any profit or loss is recognized immediately. If the sale price is below fair value, any profit or loss is recognized immediately except that, if the loss is compensated by future lease payments at below market price, it is deferred and amortized in proportion to the lease payments over the period for which the asset is expected to be used. If the sale price is above fair value, the excess over fair value is deferred and amortized over the period for which the asset is expected to be used.

2.l. Impairment of Assets

At the end of each reporting period, the Group assess whether there is any indication that an asset may be impaired. If any such indication exists, the Group shall estimate the recoverable amount of the asset. Recoverable amount is determined for an individual asset, if its is not possible, the Group determines the recoverable amount of the asset’s cash-generating unit. The recoverable amount is the higher of fair value less costs to sell and its value in use. Value in use is the present value of the estimated future cash flows of the asset or cash generating unit. Present values are computed using pre-tax discount rates that reflect the time value of money and the risks specific to the asset or unit whose impairment is being measured. If, and only if, the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset shall be reduced to its recoverable amount. The reduction is an impairment loss and is recognized immediately in profit or loss. An impairment loss recognized in prior period for an asset other than goodwill is reversed if, and only if, there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. If this is the case, the carrying amount of the asset shall be increased to its recoverable amount. That increase is a reversal of an impairment loss.

2.m. Business Combination

Business combination is a transaction or other event in which an acquirer obtains control of one or more businesses. Business combination is accounted for by applying the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets transferred by the Group, liabilities incurred by the Group to former owners of the acquiree, and the equity interests issued by the Group in exchange for control of the acquiree. Acquisition-related costs are recognized as expenses in the periods in which the costs are incurred and the services are received. At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognized at their fair value except for certain assets and liabilities that are measured in accordance with the relevant standards. Component of non-controlling interests are measured either at fair value or at the present ownership instruments’ proportionate share in the recognized amounts of the acquiree’s identifiable net assets. When a business combination is achieved in stages, the Group’s previously held equity interest in the acquiree is remeasured to fair value at the acquisition date and the resulting gain or loss, if any, is




recognized in profit or loss. When in prior periods, a changes in the value of its equity interest in the acquiree prior to the acquisition date had been recognized in other comprehensive income, that amount shall be recognized on the same basis as would be required if the Group had disposed directly of the previously held equity interest. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period, or additional assets or liabilities are recognized, to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in the recognitionof those assets and liabilities as of that date. At acquisition date, goodwill is measured at its cost being the excess of (a) the aggregate of the consideration transferred and the amount of any non-controlling interest, over (b) the net of identifiable assets acquired and liabilities assumed. If this consideration is lower than the fair value of the net assets of the subsidiary acquired, the difference is recognized in profit or loss as gain on bargain purchase after previously the management reassesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and recognize any additional assets or liabilities that are identified in that review. After intial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination, from the acquisition date, be allocated to each of the Group’s Cash Generating Units that is expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those Cash Generating Units. If goodwill has been allocated to Cash Generating Units and certain operations on the Cash Generating Units is disposed, the goodwill associated with the operation disposed is included in the carrying amount of the operation when determining the gain or losses on disposal. Disposed goodwill is measured on the basis of relative values of the operation disposed of and the portion of the Cash Generating Units retained.

2.n. Intangible Assets Intangible asset is measured on initial recognition at cost. After initial recognition, intangible asset is carried at cost less any accumulated amortization and any accumulated impairment loss. The useful life of intangible asset is assessed to be eiter limited or unlimited. Intangible asset with limited useful life Intangible asset with finite life is amortized over the economic useful life by using a straight-line method.. Amortisation is calculated so as to write off the cost of the asset, less its estimated residual value, over its useful economic life as follows: Licences 5 years straight line Development costs 5 years straight line The amortization period and the amortization method for an intangible asset with a limited useful life are reviewed at least at each financial year-end. Goodwill Goodwill arising in a business combination is initially measured at its cost, being the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer's previously held equity interest in the acquiree (if any) over the net of the acquisition-




date amounts of the identifiable assets acquired and the liabilities assumed. After initial recognition, goodwill acquired in a business combination is measured at cost less any accumulated impairment losses. Goodwill is not amortised.

2.o. Employee Benefits Short-term employee benefits Shor-term employee benefits are recognized when an employee has rendered service during accounting period, at the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service. Short term employee benefits include such as wages, salaries, bonus and incentive. Post-employment Benefits Post-employment benefits such as retirement, severance and service payments are calculated based on Labor Law No. 13/2003 (“Law 13/2003”). The Group recognizes the amount of the net defined benefit liability at the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets which calculated by independent actuaries using the Projected Unit Credit method. Present value benefit obligation determine by discounting the benefit. The Group account not only for its legal obligation under the formal terms of a defined benefit plan, but also for any constructive obligation that arises from the entity’s informal practices. Current service cost, past service cost and gain or loss on settlement, and net interets on the net defined benefit liability (asset) are recognized in profit and loss. The remeasurement of the net defined benefit liability (assets) comprises actuarial gains and losses,the return on plan assets, and any change in effect of the asset ceiling are recognized in other comprehensive income. Termination Benefits The Group recognizes a liability and expense for termination benefits at the earlier of the following dates:

When the Group can no longer withdraw the offer of those benefits; and

When the Group recognizes costs for a restructuring that is within the scope of PSAK No. 57 and involves payment of termination benefits.

The Group measures termination benefits on initial recognition, and measures and recognizes subsequent changes, in accordance with the nature of the employee benefits.

2.p. Business Combination of Entities Under Common Control Business combination of entities under common control transactions, such as transfers of business conducted within the framework of the reorganization of the entities that are in the same group is not a change of ownership in terms of economic substance, so that the transaction can not result in a gain or loss for the Group as a whole or the individual entity within the Group. Due to business combination transactions of entities under common control does not lead to change in economic substance of ownership on the exchanged asset, liability, shares or other ownership instrument, then the transferred aset or liability (in its legal form) is recorded at its carrying amount as well as a business combination under the pooling of interest method.




An entity that receives the business, in a business combination of entities under common control, recognizes the difference between the amount of the consideration transferred and the carrying amount of each transaction is a business combination of entities under common control in equity under additional paid in capital.

2.q. Revenue and Expense Recognition Revenue is recognized when it is probable that the economic benefits will flow to the Group and the amount of revenue can be measured reliably. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates and Value Added Tax (VAT). The following specific recognition criteria must also be met before revenue is recognized: Sale of goods Sales of goods are recognized upon the transfer of ownership of the goods to the customer, either upon delivery of the goods, or in the case of goods stored in the Group’ warehouse at the request of the customer, when issued invoices. Rendering of services Revenue is recognized when the service is rendered by reference to the stage of completion of transaction. Hospital revenue is recognized when medical services are rendered or when medical supplies are delivered to patients. Expenses are recognized as incurred on an accruals basis.

2.r. Income Tax Tax expense is the aggregate amount included in the determinination of profit or loss for the period in respect of current tax and deferred tax. Current tax and deferred tax is recognized in profit or loss, except for income tax arising from transactions or events that are recognized in other comprehensive income or directly in equity. In this case, the tax is recognized in other comprehensive income or equity, respectively. Current tax for current and prior periods shall, to the extent unpaid, be recognized as a liability. If the amount already paid in respect of current and prior periods exceeds the amount due for those periods, the excess shall be recognized as an asset. Current tax liabilities (assets) for the current and prior periods shall be measured at the amount expected to be paid to (recovered from) the taxation authorities, using the tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Tax benefits relating to tax loss that can be carried back to recover current tax of a previous periods is recognized as an asset. Deferred tax asset is recognized for the carryforward of unused tax losses and unused tax credit to the extent that it is probable that future taxable profit will be available against which the unused tax losses and unused tax credits can be utilized. A deferred tax liability shall be recognized for all taxable temporary differences, except to the extent that the deferred tax liability arises from: a) the initial recognition of goodwill; or b) the initial recognition of an asset or liability in a transaction which is not a business combination

and at the time of the transaction, affects neither accounting profit nor taxable profit (tax loss). A deferred tax asset shall be recognized for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be




utilised, unless the deferred tax asset arises from the initial recognition of an asset or liability in a transaction that is not a business combination and at the time of the transaction affects neither accounting profit nor taxable profit (tax loss). Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and deferred tax assets shall reflect the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

The carrying amount of a deferred tax asset reviewed at the end of each reporting period. The Group shall reduce the carrying amount of a deferred tax asset to the extent that it is no longer probable that sufficient taxable profit will be available to allow the benefit of part or all of that deferred tax asset to be utilised. Any such reduction shall be reversed to the extent that it becomes probable that sufficient taxable profit will be available.

The Group offset deferred tax assets and deferred tax liabilities if, and only if: a) the Group has a legally enforceable right to set off current tax assets against current tax liabilities; and b) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same

taxation authority on either: i. the same taxable entity; or ii. different taxable entities which intend either to settle current tax liabilities and assets on a net basis,

or to realize the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

The Group offset current tax assets and current tax liabilities if, and only if, the Group: a) has legally enforceable right to set off the recognized amounts, and b) intends either to settle on a net basis, or to realize the assets and settle liabilities simultaneously.

2.s. Financial Instruments

Initial Recognition and Measurement The Group recognize a financial assets or a financial liabilities in the consolidated statement of financial position when, and only when, it becomes a party to the contractual provisions of the instrument. At initial recognition, the Group measure all financial assets and financial liabilites at its fair value. In the case of a financial asset or financial liability not at fair value through profit or loss, fair value plus or minus with the transaction costs that are directly attributtable to the acquisition or issue of the financial asset or financial liability. Transaction costs incurred on acquisition of a financial asset and issue of a financial liability classified at fair value through profit or loss are expensed immediately. Subsequent Measurement of Financial Assets Subsequent measurement of financial assets depends on their classification on initial recognition. The Group classifies financial assets in one of the following four categories: (i) Financial Assets at Fair Value Through Profit or Loss

Financial assets at fair value through profit or loss are financial assets held for trading or upon initial recognition it is designated as at fair value through profit or loss. Financial asset classified as held for trading if it is acquired or incurred principally for the purpose of selling and repurchasing it in the near term, or it is a part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit taking, or it is a derivative, except for a derivative that is a designated and effective hedging instrument.




After initial recognition, financial assets at fair value through profit or loss are measured at its fair value. Gains or losses arising from a change in the fair value of financial assets are recognized in profit or loss.

(ii) Loans and Receivables

Loans and receivables are non-derivative financial assets with fixed or determined payments that are not quoted in an active market, other than: (a) those that intends to sell immediately or in the near term and upon initial recognition designated

as at fair value through profit or loss; (b) those that upon initial recognition designated as available for sale; or (c) those for which the holder may not recover substantially all of its initial investment, other than

because of credit deterioration. After initial recognition, loans and receivable are measured at amortized cost using the effective interest method.

(iii) Held to Maturity Financial Assets

Held to maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturity that the Group has the positive intention and ability to hold to maturity. After initial recognition, HTM investments are measured at amortized cost using the effective interest method.

(iv) Available-for-Sale Financial Assets

Available for sale financial assets are non-derivative financial assets that are designated as available for sale on initial recognition or are not classified as (a) loans and receivable, (b) held-to-maturity investment, or (c) financial assets at fair value through profit or loss. After initial recognition, available for sale financial assets are measured at its fair value. Gains or losses arising from a change in the fair value is recogniized on other comprehensive income, except for impairment losses and foreig exchange gains and losses, until the financial assets is derecognized. At that time, the cumulative gains losses previously recognized in other comprehensive income shall be reclassified from equity to profit or loss as a reclassification adjustment. Investment in equity instruments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured are measured at cost.

Subsequent Measurement of Financial Liabilities Subsequent measurement of financial liabilities depends on their classification on initial recognition. The Group classifies financial liabilities into one of the following categories: i. Financial Liabilities at Fair Value Through Profit or Loss

Financial liabilities at fair value through profir or loss are financial liabilities held for trading or upon initial recognition it is designated as at fair value through profit or loss. Financial liabilities classified as held for trading if it is acquired or incurred principally for the purpose of selling and repurchasing it in the near term, or it is a part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit taking, or it is a derivative, except for a derivative that is a designated and effective hedging instrument. After initial recognition, financial liabilities at fair value through profit or loss are measured at its fair value. Gains or losses arising from a change in the fair value are recognized in profit or loss.




ii. Other Financial Liabilities Financial liabilities that are not classified as financial liabilities at fair value through profit or loss are grouped in this category and are measured at amortized cost using the effective interest method.

Derecognition of Financial Assets and Liabilities The Group derecognize a financial asset when, and only when the contractual rights to the cash flows from the financial asset expire or the Group transfer the contractual rights to receive the cash flows of the financial asset or retains the contractual rights to receive the cash flows but assumes a contractual obligation to pay the cash flows to one or more recipients in an arrangement. If the Group transfers substantially all the risks and rewards of ownership of the financial asset, the Group derecognize the financial asset and recognize separately as asset or liabilities any rights and obligation created or retained in the transfer. If the Group neither transfer nor retains substantially all the risks and rewards of ownership of the financial asset and has retained control, the Group continue to recognize the financial asset to the extent of its continuing involvement in the financial asset. If the Group retains substantially all the risks and rewards of ownership of the financial asset, the Group continue to recognize the financial asset. The Group remove a financial liability from its statement of financial position when, and only when, it is extinguished, ie when the obligation specified in the contract is discharged or cancelled or expires. Impairment of Financial Assets At the end of each reporting period, the Group assess whether there is any objective evidence that a financial asset or group of financial assets is impaired. A financial asset or group of financial assets is impared and impairment lossess are incurred, if and only if, there is objective evidence of impairment as a result of one or more events that occured after the initial recognition of the asset (loss event), and that loss event has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated. The following are objective evidence that a financial asset or group of financial assets is impaired: (a) Significant financial difficulty of the issuer or obligor; (b) A breach of contract, such as default or delinquency in interest or principal payments; (c) It becoming probable that the borrower will enter bankruptcy or other financial reorganization; (d) Observable data indicating that there is a measurable decrease in the estimated future cash flows

from a group of financial assets since the initial recognition, such as adverse changes in the payment status of borrowers or economic condition that correlate with defaults.

For investment in equity instrument, a significant and prolonged decline in the fair value of the equity instrument below its cost is an objective evidence of impairment. If there is objective evidence that an impairment loss has been incurred on loans and receivable or held-to-maturity investments carried at amortized cost, the amount of impairment loss is measured as the difference between the carrying amount of the financial asset and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate and recognized in profit or loss. The Effective Interest Method The effective interest method is a method of calculating the amortized cost of a financial asset or a financial liability (or group of financial assets or financial liabilities) and of allocating the interest income or interest expense over the relevant period. The effective interest rate is the rate that exactly discount estimated future cash payments or receipts through the expected life of the financial instrument or, when appropriate, a shorter period to the net carrying amount of the financial asset or financial liability. When calculating the effective interest rate, the Group estimate cash flows considering all contractual terms of the financial instrument, for example, prepayment, call and similar option, but shall not consider future credit losses.




The calculation includes all fees and points paid or received between parties to the contract that are an integral part of the effective interest rate, transaction costs, and all other premiums or discounts. Reclassification The Group does not reclassify a derivative out of the fair value through profit or loss category while it is held or issued and does not reclassify any financial instrument out of the fair value through profit or loss category if upon initial recognition it was designated by the Group as at fair value through profit or loss. The Group may reclassifiy that financial asset out of the fair value through profit or loss category if a financial asset is no longer held for the purpose of selling or repurchasing it in the near term. The Group does not reclassify any financial instrument into the fair value through profit or loss category after initial recognition. If, as a result of a change in Group’s intention or ability, it is no longer appropriate to classify an investment as held to maturity, it shall be reclassified as available for sale and revalued based on fair value. Whenever sales or reclassification of more than an insignificant amount of held-to-maturity investments, any remaining held-to-maturity investments shall be reclassified as available for sale, other than sales or reclassification that are so close to maturity or the financial asset’s call date, occur after all the financial asset’s original principal has been collected substantially through scheduled payments or prepayments, or are attributable to an isolated event that is beyond control, non-recurring, and could not have been reasonably anticipated. Offsetting a Financial Asset and a Financial Liability A financial asset and financial liability shall be offset when and only when, the Group currently has a legally enforceable right to set off the recognized amount; and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. Fair Value Measurement Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes. Fair values are categorised into different levels in a fair value hierarchy based on the degree to which the inputs to the measurement are observable and the significance of the inputs to the fair value measurement in its entirety: (i) Quoted prices (unadjusted) in active markets for identical assets or liabilities that can be accessed

at the measurement date (Level 1) (ii) Inputs other than quoted prices included in Level 1 that are observable for the assets or liabilities,

either directly or indirectly (Level 2) (iii) Unobservable inputs for the assets or liabilities (Level 3)

When measuring the fair value of an asset or a liability, the Group uses market observable data to the extent possible. If the fair value of an asset or a liability is not directly observable, the Group uses valuation techniques that appropriate in the circumstances and maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs. Transfers between levels of the fair value hierarchy are recognized by the Group at the end of the reporting period during which the change occurred.

2.t. Earnings Per Share Basic earnings per share is computed by dividing the profit or loss attributable to ordinary equity holders




of the parent entity by the weighted average number of ordinary shares outstanding during the period. For the purpose of calculationg diluted earnings per share, the Group shall adjust profit or loss attributable to ordinary equity holders of the parent entity, and the weighted average number of shares outstanding, for the effect of all dilutive potential ordinary shares.

2.u. Operating Segments

Group presented operating segments based on the financial information used by the chief operating decision maker in assessing the performance of segments and in the allocation of resources. The segments are based on the activities of each of the operating legal entities within the Group. An operating segment is a component of the entity:

that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to the transactions with other components of the same entity);

whose operating results are regularly reviewed by chief operating decision maker to make decisions about resources to be allocated to the segment and assesses its performance; and

for which separate financial information is available.

2.v. Important Estimated Source of Uncertainty and Accounting Considerations The preparation of the interim consolidated financial statements in accordance with the Indonesian Financial Accounting Standards requires the management to make assumptions and estimates that could affect the carrying amounts of certain assets and liabilities at end of reporting period.

In the preparation of these interim consolidated financial statements, accounting assumptions have been made in the process of applying accounting policies that may affect the carrying amounts of assets and liabilties in the interim consolidated financial statements. In addition, there are accounting assumptions about the sources of estimation uncertainty at end of reporting period that could materially affect the carrying amounts of assets and liabilities in the subsequent reporting period. The management periodically reviews them to ensure that the assumptions and estimates have been made based on all relevant information available on the date in which the interim consolidated financial statements have been prepared. Because there is inherent uncertainty in making estimates, the value of assets and liabilities to be reported in the future might differ from those estimates. i. Important Estimated Source of Uncertainty and Accounting Considerations At the reporting date, the management has made significant assumptions and estimates which have the most significant impact to the carrying amount recognized in the interim consolidated financial statements are as follows: Allowance for Impairment of Accounts Receivable In general, the management analyzes the adequacy of the allowance for impairment based on several data, which include analyzing historical bad debts, the concentration of each customer's trade receivables, credit worthiness and changes in a given period of repayment. The analysis is carried out individually on a significant amount of accounts receivable, while the insignificant group of trade receivables is carried on the collective basis. At the reporting date, the carrying amount of trade receivables has been reflected at fair value and the carrying value may change materially in the subsequent reporting period. The change, however, will not be attributable to the assumptions and estimates made as of this reporting date (see Note 4). Deferred Tax Estimation Recognition of deferred tax assets is performed only if it is probable that the asset will be recovered in the form of economic benefits to be received in future periods, in which the temporary differences and tax




losses can still be used. Management also considers the future estimated taxable income and strategic tax planning in order to evaluate its deferred tax assets in accordance with applicable tax laws and its updates. As a result, related to its inherent nature, it is likely that the calculation of deferred taxes is related to a complex pattern where assessment requires a judgment and is not expected to provide an accurate calculation. Estimated Deferred tax is presented in Note 7.c. Estimated Useful Lifes of Property and Equipment Management makes a periodic review of the useful lifes of property and equipment based on several factors such as physical and technical conditions and development of medical equipment technology in the future. The results of future operations will be materially influenced by the change in estimate as caused by changes in the factors mentioned above. Changes in estimated useful life of property and equipment, if any, are prospectively treated in accordance with PSAK No. 25 (Revised 2010), “Accounting Policies, Changes in Accounting Estimates and Errors”. Carring value of property and equipment disclose to the Note 12. Post-employment Benefits The present value of post-employment benefits obligation depends on several factors that are determined on an actuarial basis based on several assumptions. Assumptions used to determine the cost (income) include the discount rate. Changes in these assumptions will affect the carrying amount of post-employment benefits. The Group determines the appropriate discount rate at the end of the reporting period by the interest rate used to determine the present value of future cash outflows expected to settle an estimated obligation. In determining the appropriate level of interest rates, the Group considers the interest rate of government bonds denominated in Rupiah that have a similar period to the corresponding period of the obligation. Another key assumption is partly determined by current market conditions during the period in which the post-employment benefits is resolved. Changes in the employee benefits assumption will impact recognition of actuarial gains or losses at the end of the reporting period. Information about assumtion and balance of liability and post employment benefits expense disclose to the Note 20. Fair Value of Financial Instruments When the fair value of financial assets and liabilities recorded in the consolidated statements of financial position is not available in an active market, it is determined using valuation techniques including the use of mathematical models. Input for this model is derived from observable market data through the data available. When observable market data is not available, management judgment is required to determine the fair value. Fair value of financial instruments disclose to the Note 33. ii. Significant Consideration in the Determination of Accounting Policies The following considerations made by management in the application of accounting policies that have significant effect on the amount presented in the financial statements: Revenue Recognition – Doctors Fee Policy and billing system to the patient is an integral of over all charges consist of consulting with the doctors, use of drugs and other medical procedures. Above the cost of consulting a doctor, the Hospital perform specific calculations for each doctor, make payments net of withholding tax to the doctor, although a bill to the patient is not fully collected. Management of the Group considered that there was no agency relationship between the hospital and its doctors, with consideration to the impact of the significant benefits and risks related to the provision of medical services by the doctors to patients. Bills for medical services are recognized as revenue when the recognition criteria are met.




3. Cash and Cash Equivalents

Contractual interest rates and maturity period of the time deposits are as follows:

There are no cash and cash equivalent pledged as collateral and restricted.


Rp Rp

Cash on Hand 6,270,117,401 5,937,275,218

Bank

Related Party

Rupiah

PT Bank Nationalnobu Tbk 493,063,374,863 613,301,847,008

USD

PT Bank Nationalnobu Tbk 883,280,571 206,143,442

Third parties

Rupiah

PT Bank Negara Indonesia (Persero) Tbk 67,341,418,209 46,602,290,543

PT Bank Mandiri (Persero) Tbk 16,552,222,937 16,713,015,634

PT Bank Central Asia Tbk 13,176,149,356 12,478,988,361

PT Bank CIMB Niaga Tbk 13,217,020,722 9,050,989,722

PT Bank Pembangunan Daerah Sulawesi Selatan dan Sulawesi Barat 3,227,036,297 2,929,403,419

PT Bank Rakyat Indonesia (Persero) Tbk 2,903,475,898 2,292,839,865

PT Bank Mayapada International Tbk 10,099,954,968 40,492,481

Others (each below Rp400 million) 377,081,930 484,089,253

Foreign Currencies

SGD

PT Bank Maybank Indonesia Tbk (formerly PT Bank International Indonesia Tbk) 3,169,937,422 3,091,275,403

PT Bank CIMB Niaga Tbk 256,696,189 250,480,467

USD

PT Bank ANZ Indonesia 7,930,364,820 4,706,112,708

PT Bank Negara Indonesia (Persero) Tbk 1,903,800,165 1,006,005,704


EURO



AUD


Subtotal 645,920,528,946 718,749,567,802

Time Deposits-Third Parties

Rupiah

PT Bank CIMB Niaga Tbk 10,700,000,000 10,700,000,000

PT Bank Negara Indonesia (Persero) Tbk 50,000,000 5,050,000,000

Subtotal 10,750,000,000 15,750,000,000

Total 662,940,646,347 740,436,843,020


Rp Rp

Rupiah

Annual Contractual Interest Rates 4.25% - 6.50% 3.75% - 8.75%

Maturity Period 30 hari 30 hari




4. Trade Receivables

The aging of trade receivable are as follows:

The movements in allowance for impairment losses are as follows:

All trade receivables are denominated in Rupiah. Trade receivables of PT Golden First Atlanta, a subsidiary, are pledged as collateral for loans obtained from PT Bank Central Asia Tbk (see Note 17). Based on management’s evaluation of trade receivables with individual basis at the end of the reporting year, certain trade receivable are impaired. The management has reserves for impairment losses based on the Group's accounting policies.


Rp Rp

Related Parties (Note 10) 4,542,403,297 5,454,393,488

Third Parties

Company/Corporation 768,478,632,633 739,100,557,395

Individual 59,022,016,921 48,375,498,481

Credit Card' 17,255,716,637 16,588,654,357

Others (each below Rp500 million) 10,453,584,878 9,896,576,126

Subtotal 855,209,951,069 813,961,286,359

Less: Allowance for impairment losses (48,970,051,063) (43,437,438,718)

Net - Trade Receivable - Third Parties 806,239,900,006 770,523,847,641

Total - Net 810,782,303,303 775,978,241,129


Rp Rp

Up to 1 month 307,630,371,838 265,005,985,782

> 1 month - 3 months 228,088,128,568 265,556,621,052

> 3 months - 6 months 99,621,166,414 81,538,264,525

> 6 months 88,141,061,405 79,937,885,139

> 12 months 136,271,626,141 127,376,923,349

Subtotal 859,752,354,366 819,415,679,847

Less: Allowance for impairment losses (48,970,051,063) (43,437,438,718)

Total - Net 810,782,303,303 775,978,241,129


Rp Rp

Third Parties

Beginning Balance 43,437,438,718 31,035,589,486

Addition 5,532,612,345 12,401,849,232

Ending Balance 48,970,051,063 43,437,438,718




Management provides allowances for impairment in value of trade receivable because management believes that these receivables are uncollectible. Management believes that the allowance for impairment in value is adequate to cover the possibility of uncollectible trade accounts receivable.

5. Other Current Financial Assets

Restricted Fund is Rupiah time deposit, placed in PT Bank Pan Indonesia Tbk, that restricted use only for acquisition of new subsidiary for the year 2017 (Note 30). Contractual interest rates of the time deposits is 7% per annum. Rental receivables represent receivables related to the leased area in the hospital building. As of March 31, 2017 and December 31, 2016, Group did not provide allowance for impairment losses on the receivables because management believes that all receivables are collectible.

6. Inventories

On March 31, 2017 and December 31, 2016, all inventories have been insured againts all forms of risk by PT Lippo General Insurance Tbk, a related party, amounting to Rp141,686,469,969 and Rp136,509,004,520. Management believes that insurance coverage is adequate to cover possible losses to the Group. The medicine and consumable goods of PT Golden First Atlanta, a subsidiary, are pledged as collateral for loans obtained from PT Bank Central Asia Tbk (Note 17). The amount of inventories charged to cost of sales for the 3 (Three) months ended March 31, 2017 and 2016 amounted to Rp279,852,053,109 dan Rp256,416,683,598, respectively (Note 27). The management believes that there is no indication of impairment of inventory as of March 31, 2017 and December 31, 2016


Rp Rp

Third Parties

Restricted Fund 80,000,000,000 140,000,000,000

Rental Receivables 11,157,326,800 8,657,281,095

Tax Amnesty Asset (Catatan 7.d) - 1,820,995,384

Others 3,201,354,154 1,630,550,928

Total 94,358,680,954 152,108,827,407


Rp Rp

Medicines 87,559,297,111 98,066,777,989

Medical Suppplies 67,126,577,224 67,253,927,124

Others 13,341,867,104 13,060,401,355

Total 168,027,741,439 178,381,106,468




7. Taxes

a. Tax Payable

b. Tax Expense (Benefit)

Current Tax The calculation of estimated current tax expense and corporate income tax payable of the Company are as follows:

Until the reporting date, the Company has not submitted the Annual Tax Return (SPT) for the year 2016to the tax office.


Rp Rp

Income Taxes

Pasal 4(2) 2,525,156,356 1,678,795,595

Article 21 17,278,636,119 21,024,422,274

Article 23 186,074,327 636,179,338

Article 25 2,707,847,224 2,698,419,016

Article 29

The Company 1,749,060,067 243,146,919

Subsidiaries 23,233,400,251 13,246,788,205

Value Added Tax 1,475,014,442 785,639,222

Total 49,155,188,786 40,313,390,569

The Company Subsidiaries Consolidated The Company Subsidiaries Consolidated

Rp Rp Rp Rp Rp Rp

Current Tax Expense - Non Final 13,512,271,105 12,595,169,279 26,107,440,384 15,130,314,594 4,759,431,878 19,889,746,472

Deffered Tax Assets (4,161,552,380) (657,515,092) (4,819,067,472) (1,262,948,031) 397,982,259 (864,965,772)

Consolidated Tax Expense - Net 9,350,718,725 11,937,654,187 21,288,372,912 13,867,366,563 5,157,414,137 19,024,780,700


2017 2016

2017 2016


Rp Rp

Profit Before Tax as

Consolidated Statements of Comprehensive Income - Interim 66,331,645,359 59,244,508,378

Less: Loss Before Tax of Subsidiaries (22,582,535,240) (5,767,075,689)

Profit Before Tax of the Company 43,749,110,119 53,477,432,689

Timing Differences:

Depreciation and Amortization Charges 9,743,917,407 461,738,077

Allowance for Impairment Losses 5,372,118,680 --

Employee Benefits 3,727,061,043 4,590,054,047

Liabilities Rental Lease (2,196,887,609) --

16,646,209,521 5,051,792,124

Permanent Differences:

Entertainment and Donation 1,078,452,813 -

Salary and Employee Benefits - 833,532,317

Deffered Charges - -

Income Already Subjected to Final Tax (3,996,605,663) (178,505,787)

Interest Income Already Subjected to Final Tax (5,865,150,117) (2,853,960,870)

Others 2,437,067,745 4,190,967,904

(6,346,235,222) 1,992,033,564

Estimated Taxable Income 54,049,084,418 60,521,258,378

Estimated Current Taxes - the Company 13,512,271,105 15,130,314,000

Less: Prepayments of Income Tax Article 25

Article 25 (2,819,249,979) (10,908,659,400)

Article 26 (16,023,600) --

Article 22 (934,687) --

Estimated Corporate Tax Payable (Prepaid Tax) 10,676,062,839 4,221,654,600




A reconciliation between profit before tax expense as presented in the consolidated statements of comprehensive income with the total consolidated tax expense is as follows:

c. Deferred Tax

2017 2016


Rp Rp

Profit before Tax as Presented in the Consolidated

Statements of Comprehensive Income - Interim 66,331,645,359 59,244,508,378

Less: Loss before Tax of Subsidiaries (22,582,535,240) (5,767,075,689)

Profit before Tax of the Company 43,749,110,119 53,477,432,689

Current Prevailing Tax Rate 25% 10,937,277,530 13,369,358,172

Entertainment and Donation 269,613,203 -

Salary and Employees Benefits - 208,383,079

Deffered Charge - -

Interest Income already Subjected to Final Tax (999,151,416) (44,626,447)

Income Already Subjected to Final Tax (1,466,287,529) (713,490,217)

Others 609,266,937 1,047,741,976

Total Tax Expenses of the Company 9,350,718,725 13,867,366,563

Current Tax Expenses - Subsidiaries 12,595,169,279 4,759,431,878

Deffered Tax Benefit - Sunsidiaries (657,515,092) 397,982,259

Current Tax and Correction of Previous Period - --

Total Consolidated Tax Expenses - Net 21,288,372,912 19,024,780,700

December 31, 2016 Charged (Credited) to

Consolidated

Statement of

Comprehensive

Income

Deffered Tax Liabilities

from the Acquired

Company

Charged (Credited) to

Other Comprehensive

Income

March 31, 2017

Deffered Tax Assets Rp Rp Rp Rp Rp

The Company

Employee Benefits 22,691,929,482.00 931,765,261.00 -- 2,053,994,201.00 25,677,688,944.00

Depreciation (5,944,867,754.00) 2,435,979,352.00 -- -- (3,508,888,402.00)

Allowance for Impairment Losses 6,952,033,015.00 1,343,029,670.00 -- -- 8,295,062,685.00

Liabilities Rental Lease -- (549,221,902.00) -- -- (549,221,902.00)

23,699,094,743.00 4,161,552,381.00 -- 2,053,994,201.00 29,914,641,325.00

Subsidiaries 12,106,022,580.00 (2,044,122,804.00) -- (690,345,261.00) 9,371,554,515.00

Total Differed Tax Assets 35,805,117,323.00 2,117,429,577.00 -- 1,363,648,940.00 39,286,195,840.00

Deffered Tax Liability - Subsidiaries (33,521,244,654.00) 1,585,501,974.00 (6,594,925,370.00) -- (38,530,668,050.00)




Management believes that the deferred tax asset can be recovered through taxable income in the future.

d. Tax Amnesty Program

The Company and subsidiaries have followed the tax amnesty program (tax amnesty) who have obtained a certificate Tax Amnesty No. SR-957/WPJ.07/2016, KET 981/PP/WPJ.17/2016, KET-1325/PP/WPJ.04/2016, KET-19239/PP/WPJ.06/2016 and KET-2682/PP/WPJ.03/2016 on various dates in September and October 2016. The Company and its subsidiaries have declared the tax amnesty assets and liabilities amounting to Rp1,820,995,384 and Rp1,325,000,000 respectively which were recorded other current financial assets (Note 5) and other current financial liabilities (Note 15), respectively.

8. Prepaid Expenses

Prepaid rental mainly related to the lease of the land and building of Siloam Hospitals Lippo Cikarang from PT Graha Pilar Sejahtera and lease of Siloam Cinere Hospital to PT Anadi Sarana Tatahusada (Note 36.a) and Prepaid Rent of Lintas Buana Jaya, Siloam Medika, Head Office and Siloam Denpasar.

Employee scholarship is a scholarship given to employees will be expensed along period of their education.

December 31, 2015 Charged (Credited) to

Consolidated

Statement of

Comprehensive

Income

Deffered Tax Liabilities

from the Acquired

Company

Charged (Credited) to

Other Comprehensive

Income

December 31, 2016

Deffered Tax Assets Rp Rp Rp Rp Rp

The Company

Employee Benefits 16,821,497,285 3,727,259,292 2,143,172,905 - 22,691,929,482

Depreciation (8,984,147,428) 3,039,279,674 - - (5,944,867,754)

Allowance for Impairment Losses 5,092,250,859 1,859,782,157 - - 6,952,033,016

12,929,600,716 8,626,321,123 2,143,172,905 - 23,699,094,744

Subsidiaries 10,065,822,714 2,930,776,103 (890,576,237) - 12,106,022,580

Total Differed Tax Assets 22,995,423,430 11,557,097,226 1,252,596,668 - 35,805,117,324

Deffered Tax Liability - Subsidiaries (31,673,452,294) (2,132,002,318) 284,209,958 - (33,521,244,654)


Rp Rp

Rental 32,298,428,010 36,061,880,583

Scholarship 3,670,020,066 3,095,710,000

Software Maintenance 2,579,923,366 9,089,434,755

Insurance 1,967,029,341 3,300,865,434

Advertising 5,583,303,069 2,398,918,456

Membership 6,775,729,107

Others (below Rp500 million each) 9,534,634,097 5,978,065,755

Jumlah 62,409,067,056 59,924,874,983




9. Advances

Advances for purchase of property and equipment mainly represent advance for purchase of medical equipment for Siloam Hospitals Lippo Village, Siloam Kebon Jeruk, Rumah Sakit Umum Siloam, Siloam Palembang, Siloam Surabaya, Siloam TB Simatupang, Siloam MRCCC, Siloam Kupang, Siloam Hospital Medan, Siloam Hospital Labuan Bajo, Siloam Hospital Buton, Siloam Denpasar, Siloam Makasar, Siloam Balikpapan, Siloam Jambi, Siloam Purwakarta, Rumah Sakit Asri and Siloam Medika. Rental advances mainly represent advances lease land for Siloam Medika Canggu and Seminyak, the rental of building to Siloam Medika Samarinda and Banjarmasin, lease of land and buildings for Siloam Medika Kairagi Manado and Siloam Jember. Advances for construction represent downpayment to suppliers related to the hospitals renovation.

10. Transactions with Related Parties

In its normal business transactions, the Company conducts business transactions with related parties as follows:


Rp Rp

Advances for Purchase of Property and Equipment 133,759,826,734 124,689,082,621

Construction 78,615,702,547 72,722,931,984

Advances in Acquisition of Subsidiaries (Note 30) -- 20,000,000,000

Rental Advance 60,000,000 15,664,600,000

Other ( below Rp500 million each) 23,477,477,732 7,736,161,940

Total 235,913,007,013 240,812,776,545




On April 30, 2013, the Company entered into a loan agreement with PT Lippo Karawaci Tbk. This agreement was effective from the signing of the agreement and will expire immediately when the Company repays the loan. It does not bear interest if it fully paid by December 31, 2013. On December 31, 2015, the interest rate is 7%-7.5% per year based on prevailing interest rate on loans as agreed by both parties. In 2016, the Company has repaid the loan using the proceeds from the Limited Public Offering I. The entire balance of the related party transactions are transactions denominated in Rupiah. The relationship and nature of accounts/ transactions with related parties are as follows:

Related Parties Relationship Nature of Accounts/Transaction

PT Bank Nationalnobu Tbk Under common control Placement of current account PT Lippo Karawaci Tbk Ultimate parent entity Non-interest bearing, without maturity date of loan, rental

expense, accrual, and trade receivable PT Lippo General Insurance Under common control Trade Receivable PT Primakreasi Propertindo Under common control Non-interest bearing and without maturity date of loan Directors and Board of Comissioners

Key of Management

Employee Benefit

All related parties transactions are disclosed in the interim consolidated financial statements.

March 31, 2017 December 31, 2016 March 31, 2017 December 31, 2016

Rp Rp % %

Due to Related Parties Non-Trade

PT Lippo Karawaci Tbk -- -- -- --

PT Primakreasi Propertindo -- -- -- --

Other (below Rp1 billion each) 197,506,875 197,506,875 0.02 0.02

Total 197,506,875 197,506,875 0.02 0.02

Percentage to Total Liabilities

March 31, 2017 31 Desember 2016 March 31, 2017 December 31, 2016

Rp Rp % %

Rental Expenses

PT Lippo Karawaci Tbk 24,304,468,446 91,201,094,805 7.79 7.41

Interest Expense

PT Lippo Karawaci Tbk - 24,696,098,928 - 2.01

Employee Benefit for Key Management

Short-Tern Post-Employment Benefits

Directors and Board of Commissioners 7,624,674,115 17,436,190,835 2.44 1.42

Percentage to Operating Expense




11. Other Non-Current Assets

This account mainly consist of others asset represent security deposit for utilities (electricity, communication and water).

12. Property and Equipment

March 31, 2017 31-Dec-16

Rp Rp

Others ( below Rp500 million each) 4,220,277,928 4,475,891,180

Total 4,220,277,928 4,475,891,180

Beginning Balance Addition Disposal Reclassification Ending Balance

Rp Rp Rp Rp Rp

Acquisition Cost

Direct Ownership

Land 105,860,729,300 39,430,601,478 -- -- 145,291,330,778

Building, Infrastructure and Renovations 471,292,721,725 73,855,211,000 -- -- 545,147,932,725

Medical Equipment 1,909,600,437,238 52,909,616,973 3,461,471,000 (1,349,181,259) 1,957,699,401,953

Furniture, Fixtures and Office Equipment 511,208,845,595 17,167,986,257 -- -- 528,376,831,852

Vehicles 23,382,754,062 731,897,000 -- -- 24,114,651,062

Total Direct Ownership 3,021,345,487,920 184,095,312,708 3,461,471,000 (1,349,181,259) 3,200,630,148,369

Under Capital Lease

Medical Equipment 61,272,820,780 15,996,086,688 -- 42,826,351,841 120,095,259,309

Construction In Progress

Under Capital Lease 249,292,935,713 88,318,126,241 9,090,861 (978,827,414) 336,623,143,679

Under Capital Lease

Construction In Progress 85,230,969,964 1,522,657,761 3,696,699,529 (40,498,343,168) 42,558,585,028

Total Acquisition Cost 3,417,142,214,377 289,932,183,398 7,167,261,390 -- 3,699,907,136,385

Accumulated Depreciation

Direct Ownership


Medical Equipment 1,155,675,674,410 65,860,695,478 851,453,477 (25,553,206) 1,220,659,363,205

Furniture, Fixtures and Office Equipment 399,321,469,318 20,402,739,400 46,896,182 (1,911,349) 419,675,401,188

Vehicles 17,998,933,842 1,146,793,543 -- -- 19,145,727,385

Total Accumulated Depreciation

Direct Ownership 1,721,515,774,431 102,326,977,837 898,349,659 (27,464,555) 1,822,916,938,054

Under Capital Lease

Medical Equipment 1,757,777,076 3,348,594,263 -- 27,464,555 5,133,835,894

Total Accumulated Depreciation 1,723,273,551,507 105,675,572,099 898,349,659 -- 1,828,050,773,948

Carrying Amount 1,693,868,662,869 1,871,856,362,437

-

2017 ( 3 Months)




In 2017, the addition of the Group's property and equipment, including non-cash transactions from the acquisition entity amounted Rp 115,910,350,355 and accumulated depreciation Rp10,477,812,055. In 2017, additional financing lease assets amounted Rp99,631,168,034 that come from under capital lease facility (Note 18) On March 31, 2017 and 2016, the addition of the Group’s property and equipment, including non-cash transactions from the realization of advances for purchase of fixed asstes of Rp21,322,664,819 and Rp23,949,253,271 (Note 35). Depreciation charges that were allocated in the interim consolidated statements of profit or loss and other comprehensive income are as follows:

Beginning Balance Addition Disposal Reclassification Ending Balance

Rp Rp Rp Rp Rp

Acquisition Cost

Direct Ownership

Land 101,533,729,300 4,327,000,000 -- -- 105,860,729,300

Building, Infrastructure and Renovations 431,611,144,010 36,550,950,152 -- 3,130,627,563 471,292,721,725

Medical Equipment 1,745,220,172,859 120,361,519,375 757,771,625 44,776,516,629 1,909,600,437,238

Furniture, Fixtures and Office Equipment 457,055,937,733 71,487,636,668 349,644,219 (16,985,084,587) 511,208,845,595

Vehicles 22,561,691,698 751,077,000 318,641,636 388,627,000 23,382,754,062

Total Direct Ownership 2,757,982,675,600 233,478,183,195 1,426,057,480 31,310,686,605 3,021,345,487,920

Under Capital Lease

Mecial Equioment -- 61,272,820,780 -- -- 61,272,820,780

Direct Ownership

Construction In Progress 160,046,175,072 120,557,447,246 -- (31,310,686,605) 249,292,935,713

Under Capital Lease

Construction In Progress -- 85,230,969,964 -- -- 85,230,969,964

Total Acquisition Cost 2,918,028,850,672 500,539,421,185 1,426,057,480 (0) 3,417,142,214,377

Accumulated Depreciation

Direct Ownership


Medical Equipment 928,463,476,721 227,684,342,772 472,145,083 -- 1,155,675,674,410

Furniture, Fixtures and Office Equipment 308,830,807,037 90,792,340,702 301,678,421 -- 399,321,469,318

Vehicles 15,587,362,149 2,730,213,329 318,641,636 -- 17,998,933,842

Total Accumulated Depreciation

Direct Ownership 1,364,722,195,928 357,886,043,643 1,092,465,140 -- 1,721,515,774,431

Under Capital Lease

Mecial Equioment -- 1,757,777,076 -- -- 1,757,777,076

Total Accumulated Depreciation 1,364,722,195,928 359,643,820,719 1,092,465,140 -- 1,723,273,551,507

Carrying Amount 1,553,306,654,744 1,693,868,662,869

2016 ( 1 Year)

2017 2016


Rp Rp

Cost of Sales (Note 27) 63,352,707,668.00 254,988,791,142

Operating Expenses ( Note 28) 31,845,052,376.00 104,655,029,578

Total Depreciation Charges 95,197,760,044.00 359,643,820,720




Land and building, infrastructure, machinery and tools and medical equipment of PT Balikpapan Damai Husada, a subsidiary, are pledged as collateral for loan obtained from Bank Pembangunan Daerah Kalimantan Timur (Note 17). Land and building, vehicles, furniture, fixtures and office equipment and tools and medical equipment of PT Golden First Atlanta, a subsidiary, are pledged as collateral for loan obtained from PT Bank Central Asia Tbk (Note 17). The Group's property and equipment are insured for fire and other risks with the total sum insured amounted to Rp1,199,628,024,948 and Rp1,733,566,948,944, respectively, as of March 31, 2017 and December 31, 2016 by PT Lippo General Insurance Tbk, a related party. Management believes that insurance coverages are adequate to cover possible losses of insured assets. The management believes that there is no impairment in the carrying amount of property and equipment as of March 31, 2017 and December 31, 2016.

13. Goodwill and Intangible Assets

a. Goodwill

The details of goodwill as of March 31, 2016 and December 31, 2015 are as follows:

Beginning Balance Addition Disposal Ending Balance

Rp Rp Rp Rp

Acquisition Cost

Goodwill 295,419,949,188 89,804,737,908 -- 385,224,687,096

Accumulated Impairment

Impairment of Goodwill 7,143,144,198 -- -- 7,143,144,198

Carrying Amount 288,276,804,990 89,804,737,908 -- 378,081,542,898


Rp Rp Rp Rp

Acquisition Cost

Goodwill 295,419,949,188 -- -- 295,419,949,188


Impairment of Goodwill 7,143,144,198 -- -- 7,143,144,198

Carrying Amount 288,276,804,990 288,276,804,990

2016 (1 Year)

2017 (3 Months)

Acquirer Share Acquisition in Year of

Acquisition March 31, 2017 December 31, 2016

Rp Rp

PT Koridor Usaha Maju PT Medika Sarana Traliansia 2013 132,006,537,817 132,006,537,817

PT Trisaka Raksa Waluya 2010 75,119,377 75,119,377

PT Tunggal Pilar Perkasa PT Rashal Siar Cakra Medika 2014 101,776,732,211 101,776,732,211

PT Lishar Sentosa Pratama 2017 20,466,873,723 --

PT Prawira Tata Semesta PT Balikpapan Damai Husada 2011 27,480,578,103 27,480,578,103

Perusahaan PT Prawira Tata Semesta 2011 14,146,465,217 14,146,465,217

PT Pancawarna Semesta PT Diagram Healthcare Indonesia 2012 9,251,046,030 9,251,046,030

Perusahaan PT Guchi Kencana Emas 2011 3,540,326,235 3,540,326,235

PT Mahkota Buana Selaras PT Grha Ultima Medika 2017 69,337,864,185 --

Total 378,081,542,898 288,276,804,990

Net Value




b. Intangible Assets

All of amortization of software expense is recorded as part of other expenses in consolidated statements of profit or loss and other comprehensive income.

14. Trade Payables – Third Parties

This account consist of as follows:


Rp Rp Rp Rp

Acquisition Cost

Direct Ownership

Software 60,855,908,933 3,165,219,755 -- 64,021,128,688

Under Capital Lease

Software 788,622,012 13,143,700 -- 801,765,712

61,644,530,945 3,178,363,455 -- 64,822,894,400


Direct Ownership

Amortization of Software 16,523,337,449 3,523,897,689 -- 20,047,235,138

Under Capital Lease

Amortization of Software 26,287,400 39,431,100 -- 65,718,500

16,549,624,849 3,563,328,789 -- 20,112,953,638

Carrying Amount 45,094,906,096 44,709,940,762

2017 (3 Months)


Rp Rp Rp Rp

Acquisition Cost

Direct Ownership

Software 20,967,270,273 39,888,638,660 -- 60,855,908,933

Under Capital Lease

Software -- 788,622,012 -- 788,622,012

20,967,270,273 40,677,260,672 -- 61,644,530,945


Direct Ownership

Amortization of Software 10,263,232,245 6,260,105,204 -- 16,523,337,449

Under Capital Lease

Amortization of Software -- 26,287,400 -- 26,287,400

10,263,232,245 6,286,392,604 -- 16,549,624,849

Carrying Amount 10,704,038,028 45,094,906,096

2016 (1 Year)


Rp Rp

Ruoiah

Suppliers 224,795,001,986 221,843,314,850

Professional Doctor Fee 104,302,704,992 92,283,140,866

Total 329,097,706,978 314,126,455,716




Payables to suppliers mainly represent Group’s payables to distributors and manufacturers of drugs and medical supplies as follows:

The aging of trade payables are as follows:

There is no collateral given by the Group on these payables.

15. Other Current Financial Liabilities

This account consist of:


Rp Rp

PT Anugerah Pharmindo Lestari 34,443,473,362 32,563,214,183

PT Anugrah Argon Medica 20,504,772,257 19,576,233,277

PT Enseval Putera Megatrading 20,031,905,990 19,961,260,844

PT Tempo Scan Pacific 10,401,984,293 8,221,808,666

PT Mensa Binasukses 8,769,893,981 8,705,260,125

PT Parit Padang Global 8,221,053,678 7,466,218,296

PT Dos Ni Roha 7,695,902,654 8,497,369,392

PT Nugra Karsera 4,944,364,308 2,667,282,588

PT Antar Mitra Sembada 4,201,791,996 3,586,299,426

PT Merapi Utama Pharma 4,103,877,787 4,372,901,921

PT Binasan Prima 3,725,094,498 3,258,869,495

PT Tawada Healthcare 3,378,190,373 1,036,861,104

PT Kebayoran Farma 2,694,442,158 2,554,351,918

PT Kimia Farma (Persero) Tbk 2,639,107,525 2,855,143,337

PT Millenium Pharmacon International Tbk 2,520,682,775 2,298,805,565

PT Multidaya Medika 1,197,586,716 1,210,440,533

PT Parazelsus Indonesia 720,284,701 1,850,343,101

PT Modern International 259,302,761 566,138,069

Lain-lain (masing-masing dibawah Rp1 miliar) 84,341,290,172 90,594,513,010

Total 224,795,001,986 221,843,314,850


Rp Rp

Less than 1 year

Suppliers 224,795,001,986 221,843,314,850

Professional Doctor Fee 104,302,704,992 92,283,140,866

Total 329,097,706,978 314,126,455,716


Rp Rp

Deposits 50,458,012,930 35,486,486,372

Payable on the Acquisition of Software 37,453,591,583 20,698,159,041

Payable on Purchase of shares of subsidiary 7,392,692,752 8,041,666,644

Shares Issuance Cost -- 1,534,991,622

Other Liabilities - Tax Amnesty (Note 7.d) -- 1,325,000,000

Others (each below Rp1 billion) 18,676,717,162 13,028,076,933

Total 113,981,014,427 80,114,380,612




Deposits represents advances receipt from third party for their contribution ad a sponsor on hospital’s event.

Payable on purchase of shares of subsidiary reprsents loan of PT Rashal Siar Medical Chakra (RSCM) to the previous shareholders. Other payables mostly consists of payable on purchase beside drugs and medical equipment.

16. Accrued Expenses

This account consist of:

17. Bank Loans

Bank Pembangunan Daerah Kalimantan Timur Based on Credit Agreement No. 005/870/9200/KI.59/BPDKP/2008 dated February 25, 2008, PT Balikpapan Damai Husada (BDH), a subsidiary, obtained an investment credit facility (Non-PRK) with a maximum credit of Rp50,000,000,000 and which bears interest of 11.5% per year. This loan was used to finance the development of hospitals and to repay the Company’s loan obtained from PT Bank Mandiri Tbk. This loan will mature on February 25, 2019.

This facility is secured by collateral as follows:

One (1) parcel of land with an area of 12,562 sqm including healthcare building and hospital with an area of 8,024 sqm with Right to Build (HGB) No. 2069 located at Jl. MT. Haryono RT. 35 Kelurahan Gang Bahagia, Balikpapan which is registered under the name of PT Balikpapan Damai Husada (Note 12).

Supporting infrastructure, tools and machinery and medical equipment with the estimated value of Rp8,665,020,000 (Note 12).


Rp Rp

Employees' Salary and Benefits 64,752,341,353 47,928,266,384

Rental (Note 36.a) 54,850,626,192 86,801,030,054

Contract Service 49,076,271,162 29,732,735,240

Cost of Sales 44,457,429,455 40,298,524,923

Water and Electricity 13,367,396,607 13,659,239,771

Repair and Maintenance 8,965,967,186 7,199,973,713

Others 6,624,716,366 8,591,421,629

Total 242,094,748,321 234,211,191,714


Rp Rp

Rupiah - Third Parties

Short-Term Bank Loan

PT Bank Central Asia Tbk 159,797,654 928,373,155

Bank Loan - Current Maturities 159,797,654 928,373,155

Long-Term Bank Loans

Bank Pembangunan Daerah Kalimantan Timur 15,576,257,298 17,367,492,514

PT Bank Central Asia Tbk -- --

Subtotal 15,576,257,298 17,367,492,514

Less: Current Maturities (7,700,184,013) (7,482,980,034)

Bank Loan - Net of Current Maturities 7,876,073,284 9,884,512,480




There are no restrictive financial ratios which are required to be maintained by BDH.

Payments of the principal amount of the loan for the year ended March 31, 2017 and 2016 amounted to Rp1,791,235,217 and Rp6,673,728,239.

PT Bank Central Asia Tbk Based on Deed of Credit Agreement No. 1 dated April 1, 2003 made in the presence of Yandes Effriady, S.H., a notary in Jambi, and the letter No. 0242/JAM/2010 dated February 3, 2010, as amended by Credit Agreement No. 54 dated July 19, 2010 in the presence of Hasan S. H., a Notary in Jambi and the latest by Credit Agreement No. 0163-ADD-2015 dated July 30, 2016, PT Golden First Atlanta (GFA), a subsidiary, obtained several credit facilities as follows:

Local Credit Facility (Current Account) with a maximum amount of Rp5,000,000,000.

Investment Credit Facility with a maximum amount of Rp32,419,314,946.

Both facilities bear interest at an annual rate of 12,25% for investment credit facility for December 31, 2016 and 12.5% for local credit facility and investment credit facility for December 31, 2015. Both facilities will be due on May 5, 2017 and December 20, 2016, respectively. This Investment Credit Facility was paid in December 2016.

Both facilities are secured by collaterals as follows:

Three (3) parcels of land with an area of 7,132 sqm and building with Right to Build (HGB) No. 840, 841 and 842/Paal Merah which are registered under the name of GFA, a subsidiary (Note 12).

Medical equipment, furniture, fixtures and office equipment, trade receivable, inventory of medicine and consumable goods, machinery and medical equipment (Notes 4, 6 and 12)

Based on the loan agreement, GFA is not allowed to obtain new loan from the other party without the prior written consent of the bank. Based on the loan agreement, GFA needs to maintain maximum debt to equity ratio of 5.83 times. As of March 31, 2017 and December 31, 2016, GFA has complied with the financial ratio as required. Payments of the principal amount of the loan for the year ended December 31, 2016 amounted to Rp7,729,054,796.

18. Finance Lease Obligation

In 2016, The Company obtained leasing facility related to acquisition of medical equipment from certain financing companies as follows :


Rp Rp

PT Century Tokyo Leasing Indonesia 124,249,120,696 83,228,411,208

PT Mitsubishi UFJ & Leasing Indonesia 48,451,331,409 43,808,592,300

Total 172,700,452,105 127,037,003,508




The future minimum lease payments based on lease agreements is as follows:

The details of leasing facilities are as follows a. PT Century Tokyo Leasing Indonesia (CTLI)

In the period of 2016, Group obtained finnace lease facilities from CTLI for purchase of medical equipment with payment period of 60 months which bears an effective annual interest of 11.5% - 12.65%. The outstanding balance as of March 31, 2017 and December 31, 2016 amounted to Rp124,249,120,696 and Rp83,228,411,208.

b. PT Mitsubishi UFJ Lease and Finance Indonesia (MUFG) In the period of 2017 and 2016, Group obtained finnace lease facilities from MUFG for purchase of medical equipment with payment period of 60 months which bears an effective annual interest of 11.25%.

The outstanding balance as of March 31, 2017 and December 31, 2016 amounted to Rp48,451,331,409 and Rp43,808,592,300.

19. Deferred Gain on Sale and Leaseback Transactions

Deferred gain on sale and leaseback transactions are amortized proportionately over the lease period of 15 years using the straight-line method (see Note 36.b).


Rp Rp

2017 34,495,354,585 36,117,594,172

2018 49,013,956,507 35,356,415,532

2019 48,907,520,774 35,356,415,532

2020 48,703,124,450 35,356,415,532

2021 35,639,675,349 23,196,062,827

2022 1,947,375,223

Total 218,707,006,888 165,382,903,595

Less: Interest Portion (46,006,554,783) (38,345,900,087)

Obligations under Finance Leases - Net 172,700,452,105 127,037,003,508

Obligations under Finance Leases -

Current Maturities 25,749,142,696 21,994,996,558

Obligations under Finance Leases -

Net of Current Maturities 146,951,309,409 105,042,006,950

March 31, 2017 31-Dec-16

Rp Rp

Acquisition Cost 51,954,383,673 51,954,383,673

Accumulated Depreciation (16,444,307,342) (16,444,307,342)

Carrying Value 35,510,076,331 35,510,076,331

Proceeds 219,921,683,217 219,921,683,217

Less: Gain Credited to Consolidated Statements

of Profit or Loss and Other Comprehensive Income (5,949,923,669) (5,949,923,669)

Deferred Gain on Sale and

Leaseback Transactions - Net 178,461,683,217 178,461,683,217

Less: Accumulated Amortization (74,424,226,154) (71,449,864,766)

Subtotal 104,037,457,063 107,011,818,451

Less: Current Portion (11,897,445,548) (11,897,445,548)

Non Current Portion 92,140,011,515 95,114,372,903




20. Long-Term Employment Benefits Liabilities

Post-employment benefits – No Funding Defined Benefit Plan The Group appointed independent actuaries to determine and recognize post-employment liability in accordance with the existing manpower regulations. Post-employment benefit liabilities of the Group as of December 31, 2016 was recorded based on the actuaris report of PT Lastika Dipa with report dated January 19, 2017, respectively. Management believes that the estimates of post-employment benefits are sufficient to cover such liabilities. The post-employment benefits liability in the statements of financial position are as follows:

The details of post-employment benefit expense recognized in the consolidated statements of profit or loss and other comprehensive income are as follows:

Reconciliation of changes in liabilities recognized in the consolidated statements of financial position are as follows:

Reconciliation of changes in present value of defined benefit obligation are as follows:

December 31, 2016

Rp

Present Value of Defined Obligation end of Year 116,843,236,942

Plan Assets --

Total 116,843,236,942

December 31, 2016

Rp

Current Service Cost 18,521,641,134

Interest Expense 3,545,169,281

Total 22,066,810,415

December 31, 2016

Rp

Beginning Balance Liabilities 100,057,230,423

Payment of Employees' Benefits (11,427,998,402)

Other Comprehensive Income Current Year 6,147,194,506

Post-Employment Benefits Expense During the Year 22,066,810,415

Ending Balance Liabilities 116,843,236,942

December 31, 2016

Rp

Present Value of Defined benefit Obligation 100,057,230,423

Current Service Cost 18,521,641,134

Interest Expense 3,545,169,281

Payment of employees' Benefits (11,427,998,402)

Present Value of Expected Liabilities End of Year 110,696,042,436

Actual Present Value of Liabilities End of Year 116,843,236,942

Actual Gain (Lose) Current Year (6,147,194,506)




Movements in consolidated other comprehensive income are as follow:

The defined benefit pension plan typically expose the Group to interest rate risk and salary risk. Interest Risk The present value of the defined benefit is calculated using interest rates of government bonds. Therefore, a decrease in bond interest rates would increase the liability program. Salary Risk The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan’s ability.

Significant actuarial assumptions for the determination of the defined obligation are discount rate and expected salary increase. The sensitivity analyses below have been determined based on reasonably possible changes of the respective assumptions occuring at the end of the reporting period, while holding all other assumption constant.

Sensitivity analysis 1% increase in the assumed discount rate on December 31, 2016, will result in a decrease in employee benefits expense to Rp16,198,325,813 and a decrease in defined benefit obligation to Rp103,066,783,891. A decrease of 1% in the discount rate assumed on December 31, 2016, will result in an increase in employee benefits expense to Rp21,433.877,659 and an increase in defined benefit obligation to Rp133,683,116,279.

21. Capital Stock

The composition of the Company stockholders as of March 31, 2017 and December 31, 2016 are as follows:

December 31, 2016

Rp

Beginning Balance 9,862,823,865

Accumulated of Actuarial Gain (Lose) --

Other Comprehensive Income Current Year (6,147,194,506)

Ending Balance 3,715,629,359

31-Dec-16

Discount Rates : 8.49%

Salary Increase Projection Rate : 8.00%

Mortality Rate : Indonesia – III

Permanent Disabilty Rate : 10% x TMI – II

Withdrawal Rate : 8.50% for 18 – 44 years old

0% for 45 – 54 years old

Stockholders Total

Shares

Percentage

Ownreship

Total

(%) Rp

PT Megapratama Karya Persada 670,211,685 51.53 67,021,168,500

Prime Health Company Limited 195,091,875 15.00 19,509,187,500

PT Gloria Mulia 56,324,949 4.33 5,632,494,900

PT Nilam Biru Bersinar 49,612,500 3.81 4,961,250,000

PT Safira Prima Utama 30,306,653 2.33 3,030,665,300

PT Maharama Sakti 1,125,000 0.09 112,500,000

Publik (Masing-masing Kurang dari 5%) 297,939,838 22.91 29,793,983,800

Total 1,300,612,500 100.00 130,061,250,000




22. Additional Pain-in Capital - Net

Details of additional paid-in capital - net as of March 31, 2017 and December 31, 2016 are as follows:

Additional Paid-in Capital Excess of Par-Net The details addition paid-in capital excess of par as of March 31, 2017 and December 31, 2016 is as follows:

Difference in Value of Change in Equity Transactions of Subsidiaries The change in equity transactions of subsidiaries as of March 31, 2017 and December 31, 2016 are as follows:

Rp

PT Aritasindo Permaisemesta 5,398,081,672

PT Siloam Graha Utama (18,602,651,139)

PT Nusa Medika Perkasa 1,475,787,514

Total (11,728,781,953)

The change in equity transactions of subsidiaries resulted from the excess of acquisition costs over the net assets value. Difference in Value of Restructuring Transaction between Entities Under Common Control – Net Difference in value from restructuring transactions between entities under common control as of March 31, 2017 and December 31, 2016 are as follows:

Rp

Addition Paid-in Capital Excess of Par - Net 2,593,150,681,933

Change in Equity Transactions of Subsidiaries Under Common Control - Net (11,728,781,953)

Difference in Value of Restructuring Transaction between Entities Under Common Control - Net (11,181,835,287)

Total 2,570,240,064,693

Rp

Initial Public Offering 1,389,290,000,000

Additional Paid-in Capital Excess of Par (76,567,050,000)

Share Issuance Costs

Limited Public Offering I

Additional Paid-in Capital Excess of Par 1,286,161,250,000

Share Issuance Costs (5,733,518,067)

Total - Net 2,593,150,681,933

Net Assets Value Transaction Value Difference in Value from

Restructuring Transaction

between Entities Under

Common Coontrol

Rp Rp Rp

Transfer of Net Asstes Value Hospital Divison

PT Lippo Karawaci Tbk 80,547,087,833 85,000,000,000 (4,452,912,167)

PT Wisma Jatim Propertindo 17,518,636,921 17,629,500,000 110,863,079

PT Maharama Sakti 5,839,545,640 5,876,500,000 36,954,360

Transfer of Share Ownership

PT Siloam Dinamika Perkasa 243,948,248 249,999,000 6,050,752

PT Siloam Tata Prima 243,948,248 249,999,000 6,050,752

PT Multiselaras Anugerah (958,167,625) 599,999,000 (1,558,166,625)

PT Persada Kencana Mandiri (1,427,431,797) 399,000,000 (1,826,431,797)

PT Aritasindo Permaisemesta (3,491,744,641) 12,499,000 (3,504,243,641)

Total 98,515,822,827 110,017,496,000 (11,181,835,287)




Difference in value from restructuring transactions between entities under common control resulted from the transfer of net assets of Hospital Division from PT Lippo Karawaci Tbk to the Company and transfer of share ownership.

23. Difference in Value from Non-Controlling Interest

In 2014, PT Tunggal Prima Perkasa (TPP) acquired 20% ownership of PT Medika Sarana Traliansia (MST) from Steer Clear Limited at the acquisition cost of Rp45,030,000,000. Difference between acquisition cost and acquired investment amounted to Rp25,748,354,393 recorded as Difference transaction with Non-Controlling Interest (Note 1c.)

24. Dividend and Reserve Fund

Based on Deed of Annual General Meeting of Shareholders No. 51 dated March 23, 2016 made in presence Sriwi Bawana Nawaksari, SH, M.Kn, a notary in Tangerang, the stockholders approved, among others, not to distribute cash dividends fot the yaers ended December 31, 2015 and the establishment of a general reserve fund amounting to Rp22,000,000 from retained earnings 2015.

25. Non-Controlling Interest

Details of non-controlling interests in the equity of each subsidiary as of March 31, 2017 and December 31, 2016 are as follows:


Rp Rp

PT Prawira Tata Semesta 7,470,360,742 5,955,049,357

PT Pancawarna Semesta 3,440,039,592 3,598,708,030

PT Kusuma Primadana 6,088,913,086 4,391,443,582

PT Guchi Kencana Emas (3,086,625,979) (3,668,974,043)

PT Siloam Graha Utama (4,475,887,173) (4,475,887,173)

Others 2,384,415,900 1,391,550,837

Total 11,821,216,168 7,191,890,590




26. Revenue

Details of income for the 3 (Three) months period ended March 31, 2017 and 2016, were as follows:

There were no sales to customers exceeding 10% of net revenues for respective periods.

27. Cost of Sales

Details of cost of sales for the 3 (Three) months period ended March 31, 2017 and 2016 were as follows:

There were no purchases to supplier exceeding 10% of net revenue for the periods.

2017 2016


Rp Rp

In-Patient

Medical Support Services and Professional Fees 311,356,694,024 284,995,568,101

Drugs and Medical Supplies 291,682,060,194 268,635,760,755

Room Service 122,275,895,338 116,520,389,850

Hospital's Facility 64,946,982,141 51,291,939,837

Administration and Others 38,671,546,969 28,681,743,112

Operating Theatre 34,974,130,960 23,824,288,623

Subtotal 863,907,309,626 773,949,690,278

Out-Patient

Medical Support Services and Professional Fees 335,806,800,537 296,908,424,785

Drugs and Medical Supplies 167,150,254,373 148,468,965,898

Administration and Others 25,829,646,024 21,997,828,151

Hospital's Facility 19,161,057,236 12,511,380,595

Subtotal 547,947,758,170 479,886,599,429

Total 1,411,855,067,796 1,253,836,289,707

2017 2016


Rp Rp

In-Patient

Doctors Fee, Salaries and Employees' Benefit 248,588,635,534 243,952,131,295

Drugs and Medical Supplies (Note 6) 156,244,012,216 145,153,755,601

Depreciation Charges (Note 12) 38,591,177,053 39,736,478,759

Clinical Supplies 21,037,322,212 22,089,269,375

Food and Beverages 19,669,925,082 19,152,585,200

Outchecking Expense 14,586,680,364 11,634,848,852


Others 112,475,619,799 48,661,862,424

Subtotal 617,077,822,232 534,859,012,021

Out-Patient

Doctors Fee, Salaries and Employees' Benefit 175,098,820,830 158,624,382,235


Outchecking Expense 25,851,390,760 16,127,853,499


Clinical Supplies 9,204,254,866 9,741,439,714


Others 34,193,605,480 22,033,589,393

Subtotal 396,987,426,367 344,398,004,760

Total 1,014,065,248,599 879,257,016,781




28. Operating Expenses

Details of operating expenses for the 3 (Three) months period ended March 31, 2017 and 2016 respectively, were as follows:

29. Financial Income (Charges) - Net

Details of financial income (charges) – net for the 3 (Three) months period ended March 31, 2017 and 2016 were as follows:

Administration bank represents administration charges on using electronic data capture (EDC) and bank services.

2017 2016


Rp Rp

Selling Expense

Marketing and Advertising 12,201,794,395 7,590,246,703

Salaries and Employees' Benefit 6,164,082,532 7,044,879,017

Others 255,207,110 36,489,218

Subtotal 18,621,084,037 14,671,614,938

2017 2016


Rp Rp

General and Administrative Expense

Salaries and Employees' Benefit 95,462,510,001 109,412,296,120

Rental 41,593,750,243 35,357,745,436

Other Office Expenses 34,362,365,136 31,605,315,582


Water and Electricity 27,177,817,555 27,459,551,665


Training and Development 9,283,709,961 4,096,793,974

Transportation and Accomodation 8,254,550,099 10,638,141,303

Professional Fees 7,475,952,482 2,771,081,215

Office Supplies 7,121,255,695 7,627,117,174

Communication 5,995,008,852 4,923,973,756

Insurances 4,039,365,873 4,628,122,504

Permit and License 2,434,165,591 1,862,505,908

Others 9,082,257,976 5,659,196,974

Subtotal 293,573,953,675 278,688,260,795

Total 312,195,037,712 293,359,875,733

2017 2016


Rp Rp

Interest Income 6,089,145,354 892,415,455

Financial Charges

Administration Bank (4,857,208,005) (4,256,201,799)

Interest Expense (4,411,835,674) (11,277,468,996)

Subtotal (9,269,043,679) (15,533,670,795)

Total (3,179,898,325) (14,641,255,340)




30. Business Combination

Acquisition of PT Grha Ultima Medika (GUM) On February 8, 2017, PT Grha Ultima Medika acquired 99.996% of the outstanding shares of GUM from third parties, in line with the strategic business expansion plan which supports the Group’s business activities. The following table summarises the identifiable assets acquired and the liabilities taken over at the acquisition date:

Goodwill arising from the acquisition amounted to Rp69,337,864,185 (Note 13.a) and represents subsidiary business results that support and synergy with the core business of the Group. In connection with the acquisition, the financial statements GUM from the date of acquisition have been consolidated into the financial statements of the Group.

Book Value Fair Value

Rp Rp

Net Assets

Cash and Cash Equivalent 58,907,730 58,907,730

Trade Receivables 748,656,237 712,495,544

Inventories 526,471,572 522,436,572

Prepaid Expenses -- 17,682,083

Property and Equipment 68,137,115,042 90,838,896,740

Bank Loan (55,000,000,000) (55,000,000,000)

Trade Payable (3,340,324,716) (2,761,790,950)

Other Payable (16,730,000,000) (17,183,474,626)

Accrued Expense -- (1,398,352,619)

Long-Term Employment Benefits Liabilities -- (1,632,684,803)

Diferred Tax Liablities -- (6,487,975,408)

Total Net Asset (5,599,174,135.00) 7,686,140,263.00

Proportion Acquired 99.996%

Share of Fair Value of Net Assets 7,685,832,817

Goodwill 69,337,864,185

Total Purchase Consideration 77,023,697,002




Acquisition of PT Lishar Sentosa Pratama (LSP) On February 14, 2017, PT Tunggal Pilar Perkasa and PT Mahkota Buana Selaras acquired 99.996% of the outstanding shares of LSP from third parties, in line with the strategic business expansion plan which supports the Group’s business activities. The following table summarises the identifiable assets acquired and the liabilities taken over at the acquisition date:

Goodwill arising from the acquisition amounted to Rp20,466,873,723 (Note 13.a) and represents subsidiary business results that support and synergy with the core business of the Group. In connection with the acquisition, the financial statements LSP from the date of acquisition have been consolidated into the financial statements of the Group.

Book Value Fair Value

Rp Rp

Net Assets

Cash and Cash Equivalent 46,984,886 46,991,252

Trade Receivables 554,126,359 347,245,998

Inventories 318,732,026 302,812,910

Property and Equipment 6,033,048,058 5,333,858,021

OtherIntangible Asset -- 108,888,889

Bank Loan (1,890,494,490) (1,890,494,490)

Trade Payable (166,689,233) (1,400,012,089)

Other Payable (1,943,752,040) (7,771,238,176)

Accrued Expense (462,238,386)

Long-Term Employment Benefits Liabilities (1,488,088,901)

Diferred Tax Liablities (106,949,962)

Total Net Asset 2,951,955,566.00 (6,979,224,933.95)

Proportion Acquired 99.996%

Share of Fair Value of Net Assets (6,978,945,765)

Goodwill 20,466,873,723

Total Purchase Consideration 13,487,927,958




Acquisition of PT Medika Sarana Traliansa (MST) On December 13, 2013, PT Koridor Usaha Maju acquired 80% of the outstanding shares of MST from third parties, in line with the strategic business expansion plan which supports the Group’s business activities. The following table summarises the identifiable assets acquired and the liabilities taken over at the acquisition date :

Goodwill arising from the acquisition amounted to Rp126,297,825,734 (Note 13.a) and represents subsidiary business results that support and synergy with the core business of the Group. Non-controlling interest is measured by the percentage of the non-controlling ownership of the fair value from net assets MST. The balance of non-controlling interest on this acquisition was Rp15,825,543,566. Acquisition related expenses were not calculated in this business combination since they were not material but have been charged to the current statement of profit or loss and other comprehensive income. In connection with the acquisition, the financial statements MST from the date of acquisition have been consolidated into the financial statements of the Group. Total revenue and profit before tax of MST since the date of acquisition was consolidated to comprehensive income statement for the year ended December 31, 2014 amounted to Rp195,249,110,205 and Rp27,987,987,406, respectively.




On 2015, PT Koridor Usaha Maju, a subsidiary, has recognized any payment and made an additional adjustment related to acquisition cost on PT Medika Sarana Traliansia (MST). The addition of the value of this acquisition as a result of increased prices for Rp5,708,712,083 acquisition transactions specified in the following period in accordance with the transfer agreement MST shares. In accordance PSAK 22 (Revision 2010) “Business Combination”, the Company recognized adjustment to the provision goodwill as if the account for business combination had been completed at the acquisition date.

31. Basic Earnings per Share

Calculation of basic earnings per share is as follows:

As disclosed in Note 1.b, the Company has issued HMETD amounting to 144,512,500 ordinary shares. Accordingly, the Group has recalculated the basic earnings per share for year ended December 31, 2016 to reflect that the number of ordinary shares outstanding prior to HMETD should be adjusted for the proportionate change in the number of ordinary shares outstanding as if HMETD had occured at the beginning of the earliest period presented. The average market price of the Company’s share during the year is lower than the right’s exercise price, therefore the dilutive effect on issuance of HMETD is not calculated for the presentation of earnings per share information.

32. Monetary Asset Denominated in Foreign Currencies

2017 2016


Profit for the Period Attributable to Owners

of the Parent Entity (Rupiah) 40,413,946,869 40,515,021,610

Weighted Average of Outstanding Shares 1,163,226,644 1,156,100,000

Basic Earning per Share (Rupiah) 34.74 35.04

Equivalent

USD SGD EURO AUD Rupiah

Asset

Cash and Cash Equivalents 827,126 359,487 284,179 733,823 25,962,793,766

March 31, 2017

Foreign Currency

Equivalent

USD SGD EURO AUD Rupiah

Asset

Cash and Cash Equivalents 464,514 359,371 137,056 342,618 14,855,611,516

Foreign Currency

December 31, 2016




33. Financial Instruments and Financial Risks Management

The main financial risks faced by the Group are credit risk, foreign currency risk and liquidity risk. Attention to the management of this risk has increased significantly with considerable change and volatility in the Indonesian markets. The Board of Directors has reviewed the financial risk management policy regularly

(i) Credit Risk

Credit risk is the risk that the Group will incur a loss arising from the customers, clients or counterparties that fail to meet their contractual obligations. The Group's financial instruments that have the potential credit risk consist of cash and cash equivalents, accounts receivable, other current financial assets and other non-current financial assets. Total maximum credit risk exposure of financial assets on March 31, 2017 and December 31, 2016 are as follows:

The Group manages credit risk by setting limits on the amount of risk that is acceptable to each customer and to be more selective in choosing banks and financial institutions, only banks and financial institutions reputable and well chosen. The following tables analyze assets that have matured but not impaired and are not yet due and not impaired as well as financial assets that are individually determined to be impaired:

Carrying Value Maximum Exposure Carrying Value Maximum Exposure

Rp Rp Rp Rp

Financial Assets

Loan and Receivables

Cash and Cash Equivalents 662,940,646,347 662,940,646,347 740,436,843,020 740,436,843,020

Trade Receivables 810,782,303,303 810,782,303,303 775,978,241,129 775,978,241,129

Other Current Financial Assets 464,252,992 464,252,992 525,498,069 525,498,069

Due from Related Parties Non-Trade 94,358,680,954 94,358,680,954 152,108,827,407 152,108,827,407

Total 1,568,545,883,596 1,568,545,883,596 1,669,049,409,625 1,669,049,409,625


Total

Not Yet Overdue 0-90 Days 91-180 Days >181 Days Banking CompanyNon-banking

CompanyIndividual

Rp Rp Rp Rp Rp Rp Rp Rp

Cash and Cash Equivalents 656,670,528,946 6,270,117,401 662,940,646,347.00

Trade Receivables 307,630,371,838 228,088,128,568 99,621,166,414 224,412,687,546 - 859,752,354,366.00

Due from Related Parties Non-Trade 464,252,992 464,252,992.00

Other Current Financial Assets 94,358,680,954 94,358,680,954.00

Total 307,630,371,838 228,088,128,568 99,621,166,414 224,412,687,546 656,670,528,946 101,093,051,347 - 1,617,515,934,659.00

Not Yet Overdue but Not Impaired

March 31, 2017

Overdue but Not Impaired

Total

Not Yet Overdue 0-90 Days 91-180 Days >181 Days Banking CompanyNon-banking

CompanyIndividual

Rp Rp Rp Rp Rp Rp Rp Rp

Cash and Cash Equivalents 734,499,567,802 5,937,275,218 740,436,843,020

Trade Receivables 265,005,985,782 265,556,621,052 81,538,264,525 207,314,808,488 - 819,415,679,847

Due from Related Parties Non-Trade 525,498,069 525,498,069

Other Current Financial Assets 152,108,827,407 152,108,827,407

Total 265,005,985,782 265,556,621,052 81,538,264,525 207,314,808,488 734,499,567,802 158,571,600,694 - 1,712,486,848,343

December 31, 2016

Overdue but Not Impaired Not Yet Overdue but Not Impaired




The Group has recorded provision for impairment of trade receivables which has overdue accounts (Note 4). Financial assets that are not yet due, as indicated credit risk primarily of cash and cash equivalents and other current financial assets. Management believes that there is no significant credit risk on placement of funds in the bank that its use is not limited or restricted, due to the placement of funds is only placed on banks that are predicated good.

(ii) Liquidity Risk

Liquidity risk is the risk that the cash flow position of the Group indicates short-term earnings are not enough to cover short-term expenses. The Group manages liquidity risk by maintaining cash and cash equivalents are sufficient to meet the Group's commitment to the normal operation of the Group and regularly evaluates the cash flow projections and actual cash flows, as well as maturity date schedule of financial assets and liabilities. The following table details financial liabilities analyzed by maturity:

(iii) Market Risk a. Foreign Currency Risk

Currency risk is the risk of fluctuations in the value of financial instruments due to changes in foreign currency exchange rates.

Group is significantly exposed to foreign currency risk because most transactions in foreign currency group.

Maturity Not Total

Less than 1 year 1 - 5 Years More than 5 years Determined

Rp Rp Rp Rp Rp

Measured at Amortized Cost:

Trade Payable - Third Parties 329,097,706,978 -- -- -- 329,097,706,978

Accrued Expenses 242,094,748,321 -- -- -- 242,094,748,321

Bank Loans 7,859,981,667 7,876,073,284 -- -- 15,736,054,951

Finance Lease Obligation 25,749,142,696 146,951,309,409 -- -- 172,700,452,105

Other Curret Financial Liabilities 113,981,014,427 -- -- -- 113,981,014,427

Due to Related Parties Non-Trade -- -- -- 197,506,875 197,506,875

Total 718,782,594,089 154,827,382,693 -- 197,506,875 873,807,483,657

March 31, 2017

Will Due On

Maturity Not Total

Less than 1 year 1 - 5 Years More than 5 years Determined

Rp Rp Rp Rp Rp

Measured at Amortized Cost:

Trade Payable - Third Parties 314,126,455,716 -- -- -- 314,126,455,716

Accrued Expenses 234,211,191,714 -- -- -- 234,211,191,714

Bank Loans 8,411,353,189 9,884,512,480 -- -- 18,295,865,669

Finance Lease Obligation 21,994,996,558 105,042,006,950 -- -- 127,037,003,508

Other Curret Financial Liabilities 80,114,380,612 -- -- -- 80,114,380,612

Due to Related Parties Non-Trade -- -- -- 197,506,875 197,506,875

Total 658,858,377,789 114,926,519,430 -- 197,506,875 773,982,404,094

Will Due On

December 31, 2016




Sensitivity Analysis A hypothetical weakening of the exchange rate of Rupiah against US Dollar is 10%, the Group’s profit before tax for the year would have increased by Rp1,101,814,849 (2016: Rp624,120,574).

A hypothetical weakening of the exchange rate of Rupiah against Singapore Dollar is 10%, the Group’s profit before tax for the year would have increased by Rp342,663,361 (2016: Rp334,175,587).

The weakening of the exchange rate of Rupiah against other foreign currencies do not have material impact to the profit after tax.

b. Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group did not have interest rate risk mainly because it does not have a loan with a floating interest rate.

Estimation of Fair Value The following table presents the carrying amounts of each category of financial assets and liabilities:

As of March 31, 2017 and December 31, 2016, management estimated that the carrying value of the current assets and financial liabilities and those accounts with no determined maturity reflected their fair value.

34. Capital Management

Management conducts supervision over the management of capital through cash and cash equivalents balance of the liability and the results of operations of the Company as well as the ratio of adjusted net liabilities to equity. Capital management is to maintain the continuity of the Company's business and maximize the benefits for shareholders and other stakeholders. In managing the capital, the Company periodically evaluate the necessity and sufficiency of funds to support the Company's operation and performance evaluation of ongoing projects and new project development.

Carrying Value Fair Value Carrying Value Fair Value

Rp Rp Rp Rp

Financial Assets

Loans and Receivables:

Cash and Cash Equivalents 662,940,646,347 662,940,646,347 740,436,843,020 740,436,843,020

Trade Receivable 810,782,303,303 810,782,303,303 775,978,241,129 775,978,241,129

Due from Related Parties Non-Trade 464,252,992 464,252,992 525,498,069 525,498,069

Other Current Financial Assets 94,358,680,954 94,358,680,954 152,108,827,407 152,108,827,407

Total 1,568,545,883,596 1,568,545,883,596 1,669,049,409,625 1,669,049,409,625


Carrying Value Fair Value Carrying Value Fair Value

Rp Rp Rp Rp

Financial Liabilities Measured at

Amortized Cost:

Trade Payable-Third Parties 329,097,706,978 329,097,706,978 314,126,455,716 314,126,455,716

Accrued Expenses 242,094,748,321 242,094,748,321 234,211,191,714 234,211,191,714

Bank Loans 15,736,054,951 15,736,054,951 18,295,865,669 18,295,865,669

Finance Lease Obligation 172,700,452,105 172,700,452,105 127,037,003,508 127,037,003,508

Other Current Financial Liabilities 113,981,014,427 113,981,014,427 80,114,380,612 80,114,380,612

Due to Related Parties Non-Trade 197,506,875 197,506,875 197,506,875 197,506,875

Total 873,807,483,657 873,807,483,657 773,982,404,094 773,982,404,094





The following summaries quantitative data for capital management on March 31, 2017 and December 31, 2016:

35. Non-cash Transactions and Reclassification

The following are investing and financing activities that did not affect cash flows:

Shares issuance cost through as of December 31, 2016 amounting to Rp1,534,991,622 (Note 15) and have been paid on March 31, 2017.

On March 31 2017 and December 31, 2016, addition of property and equipment and intangible assets through finance lease amounted Rp17,518,744,449 and Rp147,292,412,758.

Addition of property and equipment Groups period March 31, 2017 and December 31, 2016 from reclassification of advances amounting to Rp21,322,064,819 and Rp23,949,253,271, respectively.

In 2016, acquisition of software through other payables amounted Rp20,698,159,041.

36. Commitments and Significant Agreements

a. Rental Agreement

On February 2005, PT Diagram Healthcare Indonesia (DHI), a subsidiary entered into lease agreement of Siloam Cinere Hospital with PT Anadi Sarana Tatahusada. This agreement is valid for 13 years with total amount of lease Rp12,000,000,000. Rental expenses for the years ended March 31, 2017 and December 31, 2016 amounted to Rp322,259,794 and Rp253,846,154, respectively.

Based on the rental agreement of Allen & Gledhill Advocates & Solicitors dated November 8, 2010, PT East Jakarta Medika (EJM )which received novation from PT Lippo Karawaci Tbk, ultimate parent company, on October 10, 2011 entered into a lease agreement with GPS for 15 years. Based on the agreement, EJM shall pay rental fee which consist of base rent and variable rent. Base rent commences in the first year of the lease period and will be adjusted in the following year, while variable rent will commence in the second year of the lease period based on certain percentage of gross revenue. Rental expense will be paid quarterly. Any late payment will be subjected to 2% penalty plus interest rate based on the average lending rate of 3 banks in Singapore. As this sale and leaseback transaction met the classification of operating lease and the transaction price was above its fair value, the difference was recognized as deferred gain (Note 19).


Rp Rp

Net Liabilities:

Total Liabilities 1,198,936,750,419 1,086,619,553,976

Less : Cash and Cash Equivalent (662,940,646,347) (740,436,843,020)

Total Net Liabilities 535,996,104,072 346,182,710,956

Total Equity 3,174,113,268,550 3,129,069,996,103

Addition

Net Additional Paid - in Capital 22,910,617,240 23,058,434,679

Difference in Value from Non controlling Interest Transaction 25,748,354,393 25,748,354,393

Non-controlling Interest (11,821,216,168) (7,191,890,590)

Total 36,837,755,465 41,614,898,482

Total of Adjusted Equity 3,210,951,024,015 3,170,684,894,585

Net Liability Ratio to Adjusted Equity 0.2 0.1




Rental expenses for sale and lease-back transaction for the 3 (Three) months period ended March 31, 2017 and 2016, amounted to Rp7,757,707,485 and Rp4,617,667,818, respectively.

On January 7, 2012, the Company entered into a lease agreement for Siloam Hospitals Palembang (Siloam Sriwijaya) with PT Palembangparagon Mall (PM). This agreement is valid for 10 years from the grand opening of the hospital and included a rental free period (grace period) for 3 (three) months after the grand opening of the hospital.

Based on the agreement, Siloam Sriwijaya shall pay rental fee in the amount of Rp3 billion and will be increased by Rp500 million every three years period. The rental fee is payable in advance for each period not later than the 10th day of the first month of the rental period.

On October 5, 2012, PM entered into transfer of property ownership agreement with PT Bisma Pratama Karya, thus, Siloam Sriwijaya receive novation of lease ownership. This agreement did not change the terms of the original lease agreement.

On January 2, 2014, PT RS Siloam Hospital Sumsel entered the hospital building lease agreement Siloam Palembang (Siloam Sriwijaya) with PT Bisma Pratama Karya. This agreement is ended based on agreement dated December 2, 2014 related to transfer ownership of building. Then, on December 2, 2014, PT RS Siloam Hospital Sumsel entered to new lease agreement Siloam Sriwijaya with PT Metropolis Propertindo Utama. This agreement valid for 15 years since issuance Siloam Sriwijaya business licence which on November 6, 2013. Rental is paid quarterly. Rental expenses for the years ended March 31, 2017 and 2016 amounted to Rp1,057,031,596 and Rp375,000,000.

On May 28, 2014, PT Berlian Cahaya Indah, a subsidiary, entered into lease agreements Siloam Purwakarta’s hospital building with PT Metropolis Propertindo Utama. This agreement is valid for 15 years from the date of issuance of the business license of Siloam Purwakarta which on May 14, 2014. Rent is paid quarterly.

Rental expenses for the years ended March 31, 2017 and 2016 amounted to Rp768,088,676 and Rp1,080,000,000, respectively.

On December 22, 2014, PT Krisolis Jaya Mandiri, a subsidiary, entered into lease agreements Siloam Purwakarta’s hospital building with PT Nusa Bahana Niaga. This agreement is valid for 15 years from the date of issuance of the business license of Siloam Kupang which on December 1, 2014. Rent is paid quarterly. Rental expenses for the period ended March 31, 2017 and December 31, 2016 amounted to Rp970,326,586 and Rp1,312,268,200.

On April 1, 2015, PT Siloam International Hospitals Tbk, entered into lease agreements with PT Grahaputra Mandirikharisma. This agreement is valid for 4 years starting from April 1, 2015. Rent is paid every 6 months.. Rental expenses for the period ended March 31, 2017 and December 31, 2016 amounted to Rp1,378,080,500 and Rp5,629,338,000.

On August 24, 2016, PT Bina Bahtera, a subsidiary, entered into lease agreements Siloam Buton hospital building with PT Andromeda Sakti. This agreement is valid for 15 years. Rent is paid quarterly.




Rental expenses for the period ended March 31, 2017 and December 31, 2016 amounted to Rp750,024,000 and Rp2,250,072,000

On August 24, 2016, PT Lintas Buana Jaya, a subsidiary, entered into lease agreements Siloam Labuan Bajo hospital building with PT Pancuran Intan Makmur. This agreement is valid for 15 years. Rent is paid quarterly. Rental expenses for the period ended March 31, 2017 December 31, 2016 amounted to Rp1,003,728,000 and Rp3,809,849,291

b. Sub-Lease Agreement between the Company and PT Lippo Karawaci Tbk (LK) On April 30, May 13, and July 1, 2013, the Company entered into a sub-lease agreement with LK, ultimate parent entity of the Company, covering property of Siloam Hospitals Lippo Village, Siloam Hospitals Kebon Jeruk, Siloam Hospitals Surabaya, Siloam Hospitals Semanggi MRCCC, Siloam Hospitals Manado, Siloam Hospitals Makassar, Siloam Hospitals Bali and Siloam Hospitals TB Simatupang.

For the year ended March 31, 2017 and December 31, 2016 rental expenses amounted to Rp24,304,468,446 and Rp20,059,005,166, respectively.

c. Master Agreement between the Company with PT Lippo Karawaci Tbk (LK) On April 30, 2013, the Company entered into a preliminary agreements with LK, ultimate parent entity of the Company, which include:

Property lease agreement of Rumah Sakit Umum Siloam and the properties to be used as Siloam Hospitals Kemang and Siloam Hospitals St. Moritz;

The right to build properties that will be used as Siloam Hospitals Yogyakarta, Siloam Hospitals Bintaro and Siloam Hospitals Surabaya Manyar;

The agreement to offer certain property to be operated as Siloam Hospitals Pontianak; and

Co-operation agreement Siloam Hospitals Bandung.

d. Master Agreement between the Company with PT Metropolis Propertindo Utama (MPU) On April 30, 2013, the Company entered into a preliminary agreements with MPU which include:

Sale and purchase of shares of Siloam Hospitals Malang, Siloam Hospitals Salemba and Siloam Hospitals Surabaya Sea Master;

Right to build properties that will be used as Siloam Hospitals Padang, Siloam Hospitals Bangka Belitung, Siloam Hospitals Semarang Srondol, Siloam Hospitals Bogor Internusa, Siloam Hospitals Jember, Siloam Hospitals Bluemall Bekasi, Siloam Hospitals Bekasi Grand Mall, Siloam Hospitals MT Haryono and Siloam Hospitals Lampung;

The right to operate and manage Siloam Hospitals Kupang;

Property lease agreement of Siloam Hospitals Surabaya Sea Master, Siloam Hospitals Pluit and Siloam Hospitals Cempaka Putih; and

The agreement to offer certain property to be operated as Siloam Hospitals Purwakarta, Siloam Hospitals Ambon, Siloam Hospitals Lubuk Linggau, Siloam Hospitals Manado Kairagi, Siloam Hospitals Serang and Siloam Hospitals Pekanbaru.




37. Operating Segments

38. Litigation Cases

On 27 March 2009, dr Doro Soendoro, dr Liem Kian Hong and dr Hardi Susanto as the plaintiffs filed a lawsuit against the Company as defendant regarding the termination of the plaintiff’s work contract. All claims were declined through the decision of the District Court Jakarta Barat No. 147/Pdt.G/2009/PN.JKT.BAR dated July 23, 2009 but was accepted by the decision of the High Court of Jakarta No. 626/PDT/2009/PT.DKI dated June 29, 2010. On September 24, 2010, the Plaintiff filed a cassation against the verdict of the Jakarta High Court to the Supreme Court. Then based on the notification of the verdict of Supreme Court No. 410.K/Pdt/2011 jo. No. 147/Pdt.G/2009/PN.Jkt.Bar dated August 20, 2013. Supreme Court overturned the verdict of Jakarta High Court and declare the Jakarta High Court is not authorized to prosecute and punish the Plaintiff to pay the court fee Rp. 500,000. The verdict of Supreme Court mentioned above has final and binding. Following up the verdict, on September 13, 2015, the plaintiff filed a judicial review to the Supreme Court. On January 16, 2017, the Company has received an official copy of the review of the decision in which the Supreme Court rejected the plaintiff's claim in full.

Siloam

Hospitals

Lippo Village

Siloam

Hospitals

Kebun Jeruk

Siloam

Hospitals

Surabaya

MRCCC

Siloam

Hospitals

Lippo Cikarang

Siloam

Hospitals

Balikpapan

Siloam

Hospitals

Makassar

Siloam

Hospitals

Denpasar

Siloam

Hospitals

Palembang

Others Elimination Consolidation

Rp Rp Rp Rp Rp Rp Rp Rp Rp Rp Rp Rp

External Revenue

Inpatient 104,240 94,607 63,120 87,727 30,813 43,034 47,501 44,444 35,745 312,676 - 863,907

Outpatient 97,567 68,828 28,540 56,683 30,279 25,115 23,747 32,371 18,377 170,353 (3,912) 547,948

201,807 163,435 91,660 144,410 61,092 68,149 71,248 76,815 54,122 483,029 (3,912) 1,411,855

Gross Profit

Inpatient 35,013 30,596 19,018 17,752 7,718 18,787 11,158 13,270 13,001 80,516 - 246,829

Outpatient 29,110 18,012 11,378 18,890 9,468 3,355 8,171 10,825 4,558 37,193 - 150,960

64,123 48,608 30,396 36,642 17,186 22,142 19,329 24,095 17,559 117,709 - 397,789

Operating Expense and Others (24,580) (22,682) (14,193) (25,832) (13,205) (10,666) (12,820) (13,396) (9,660) (181,244) - (328,278)

Financial Charges - Net (1,009) (823) (219) (1,472) 152 (507) (128) (330) (48) 1,204 - (3,180)

Tax Expenses - - - - 153 (2,468) - - (1,929) (17,044) - (21,288)

Profit (loss) for the Period 38,534 25,103 15,984 9,338 4,286 8,501 6,381 10,369 5,922 (79,375) 45,043

Segment Assets 1,140,980 450,572 318,046 407,719 107,493 181,941 190,731 450,267 87,827 1,037,474 - 4,373,050

Segment Liabilities 300,891 96,044 71,232 503,367 125,545 145,170 150,514 344,021 57,259 (595,106) 1,198,937

Capital Expenditure 14,872 6,282 1,564 5,258 3,035 792 1,965 404 1,280 233,156 - 268,609

Depreciation 6,466 4,697 2,331 10,252 2,292 5,554 5,674 5,536 5,135 47,261 - 95,198

Non-Cash Expenses exclude Depreciation 609 713 438 594 212 192 318 237 135 6,851 - 10,300

March 31, 2017 (In Millions Rupiah)

Siloam

Hospitals

Lippo Village

Siloam

Hospitals

Kebun Jeruk

Siloam

Hospitals

Surabaya

MRCCC

Siloam

Hospitals

Lippo Cikarang

Siloam

Hospitals

Balikpapan

Siloam

Hospitals

Makassar

Siloam

Hospitals

Denpasar

Siloam

Hospitals

Palembang

Others Consolidation

Rp Rp Rp Rp Rp Rp Rp Rp Rp Rp Rp

External Revenue

Inpatient 108,366 96,170 52,916 73,943 28,383 29,670 57,023 45,354 30,941 251,184 773,950

Outpatient 93,425 62,880 26,870 52,685 27,049 22,481 22,967 29,941 16,188 125,401 479,887

201,790 159,050 79,787 126,628 55,431 52,150 79,990 75,296 47,129 376,585 1,253,836

Gross Profit

Inpatient 35,524 26,105 15,666 15,014 6,015 11,262 18,049 22,268 9,199 76,265 235,368

Outpatient 31,498 15,739 12,210 17,067 9,156 6,113 4,478 11,697 3,834 21,525 133,319

67,022 41,844 27,877 32,081 15,172 17,375 22,527 33,965 13,033 97,791 368,688

Operating Expense and Others (28,297) (22,701) (13,660) (30,236) (15,477) (11,481) (13,897) (11,959) (8,169) (138,925) (294,802)

Financial Charges - Net (918) (1,086) (206) (2,876) 427 (598) (159) (311) (43) (8,871) (14,641)

Tax Expenses - - - - 106 (138) - - (396) (18,596) (19,025)

Profit (loss) for the Period 37,807 18,057 14,011 (1,031) 228 5,158 8,471 21,696 4,426 (68,601) 40,220

Segment Assets 1,086,242 386,885 98,756 441,053 105,101 180,170 112,816 288,003 180,950 281,820 3,161,795

Segment Liabilities 405,416 105,238 (89,686) 557,334 125,741 161,633 101,805 235,632 164,112 (388,226) 1,378,999

Capital Expenditure 2,669 3,463 1,016 1,665 1,329 791 1,058 427 6,497 74,626 93,542

Depreciation 6,207 4,116 2,333 14,407 2,100 5,159 5,467 5,335 4,864 37,173 87,161

Non-Cash Expenses exclude Depreciation 841 713 704 754 319 168 246 221 135 3,000 7,099

March 31, 2016 (In Millions Rupiah)




On August 8, 2014, Drs. H. Akhmad Haris submitted the lawsuit to Tangerang District Court Number 470/Pdt.G/2014/PN.TNG against the company regarding the alleged malpractice suffered by plaintiff.

The value of a lawsuit filed by the plaintiffs include material loss of Rp906,231,000, which represent costs incurred by the claimant and non-material losses amounting Rp500,000,000,000. All of the claim submitted by the plaintiff have been rejected based on the verdict of Tangerang District Court Number 470/Pdt.G/2014/PN.TNG dated 6 August 2015. On August 19, 2015, Plaintiff filed an appeal against the verdict. On February 16, 2016 the Banten Supreme Court issued a decision in the case with register number 131 / PDT / 2015 / PT.BTN to strengthen the District Court's previous decision. On March 29, 2016, Plaintiff filed a cassation to the Supreme Court. Up to the reporting date, the Company has not received further notice from the court.

On December 16, 2014, dr. Arnold Bobby Soehartono (Plaintiff) filed a lawsuit to the Surabaya Commercial Court at Surabaya District Court in connection with the use of self-portrait of the plaintiff by the company (“Defendant”). The value of the lawsuit filed by plaintiff include material compensation in the amount of Rp375,229,125 and non-material compensation in the amount of Rp8,000,000,000. Lawsuit filed by Plaintiff was granted partly by Commercial Court at Surabaya District Court based on verdict No. 10/HKI.Hak Cipta/2014/PN.Niaga.Sby dated April 13, 2015 in which the Defendant was sentenced to pay compensation in the amount of Rp200,000,000 and forced to pay money in the amount of Rp500,000 per day delay since the verdict has legal binding until the implementation of the court verdict. On April 27, 2015, the Defendant filed a cassation against the verdict. On April 13, 2016, the Supreme Court issued a ruling No. 262K/Pdt.Sus-HKI/2016 which rejected the application of Cassation Defendants and punish the defendant to pay damages to the plaintiff amounted to Rp200,000,000. Based on applicable laws, the Company may take further legal action for filling reconsideration which deadline maximum of 180 days from the official copy of the decision that accepted by the parties.

On February 23, 2016, Drs. H. Akhmad filed a lawsuit against the company to Tangerang District Court with No. 130/PDt.G/2016/PN.TNG regarding the disclosure of medical information by company to dr. Marius Widjajarta, one of the speaker in TV ONE which aired on April 17, 2015. The value of a lawsuit filed by the plaintiff is immaterial value of 5,000,000,000 without material value. At the trial held on August 22, 2016, the Tangerang District Court has issued a ruling stating that the Plaintiff's claim rejected entirely. The Company believes that the District Court Tangerang was final and binding and the Plaintiff can not apply for other legal remedies, because a period of time to file an appeal is 14 days after the verdict in the court has been exceeded.




39. Events After Reporting Period

a. On March 31, 2017, PT Mahkota Buana Selaras (MBS), has signed sale and purchase aggrement, made

before Sriwi Bawana Nawaksari, S.H, M.Kn., public notary in Tangerang, pursuant to which MBS has 5 area of land with an area 6,071sqm that located in Banda Aceh from Mr. Hermes Thamrin. The land cost amounting to Rp40,000,000,000.

b. On March 31, 2017, PT Mahkota Buana Selaras (MBS), has signed sale and purchase aggrement, made

before Sriwi Bawana Nawaksari, S.H, M.Kn., public notary in Tangerang, pursuant to which MBS has the building with an area 15,409sqm that located in Banda Aceh from PT Berlian Global Perkasa. The building cost amounting Rp22,000,000,000 include value added Tax.

40. New Accounting Standards not Yet Effective for Year 2016

Amendments to standard and interpretation effective for periods beginning on or after January 1, 2017, with early application permitted are amendments to PSAK 1 “Presentation of Financial Statements about Disclosure Initiative” and ISAK 31 “Scope Interpretation of PSAK 13: Investment Property”. Standard and amendment to standard effective for periods beginning on or after January 1, 2018, with early application permitted are PSAK 69 “Agriculture” and amendments to PSAK 16 “Property and equipment about Agriculture: Bearer Plants”. Until the date of the consolidated financial statements is authorized, the Group is still evaluating the potential impact of the adoption of new standards, amendments to standards and interpretations of these standards.

41. Responsibility and Issuance of the Consolidated Financial Statements

The management of the Company is responsible for the preparation and presentation of the consolidated financial statements. The consolidated financial statements were authorized for issuance by Directors on April 26, 2017.ector Accounting Manager

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