Loans to related parties

Adaro Energy Annual Report 2008 www.adaro.com 191 Contact Us Governing Adaro Financial Report Corporate Social Responsibility PT ADARO ENERGY Tbk Schedule 559 FORMERLY PT PADANG KARUNIA AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2008 AND 2007 Expressed in million Rupiah, unless otherwise stated

38. TRANSACTIONS AND BALANCES WITH RELATED PARTIES continued e.

Amounts due to related parties 2008 2007 Rupiah PT Persada Capital Investama 432 - PT Saratoga Sentra Business 432 - Others - 194 864 194 US Dollars PT Rachindo Investments 5,475 4,710 Arindo Global Netherlands B.V. - 3,861 5,475 8,571 Total 6,339 8,765 As a percentage of total liabilities 0.03 0.07 The amounts due to related parties represent the reimbursement of expenses incurred that were paid by Arindo Global and Rachindo on behalf of the Group and the cost of acquisition of MSW that has not been paid to SSB and PCI.

f. Loans from related parties

2008 2007 Rupiah PT Padangbara Sukses Makmur - 10,003 US Dollars PT Interex Sacra Raya - 942 Total - 10,945 As a percentage of total liabilites - 0.09 The interest rates on loans from related parties are as follow: 2008 2007 Rupiah - 5.0 PT Padangbara Sukses Makmur On 29 October 2004, the Company entered into a loan agreement with PT Padangb ara Sukses Makmur “PSM”, for a loan facility amounting to Rp 50,000 and US5,000,000 which will be used for the Company’s operations. The loan term is two years commencing on the date of the agreement. The total loan outstanding as at 31 December 2007 was Rp 10,003. In December 2008, the outstanding loan was fully paid by the Company. PT Interex Sacra Raya On 20 March 2006 and 12 May 2006, SIS received loans from PT Interex Sacra Raya “Interex” amounting to US5,000,000 and US2,000,000, respectively. During 2006 and 2007, SIS gradually repaid the loans in the amount of US6,500,000 and US400,000, respectively. As at 31 December 2007, the outstanding balance of these loans was US100,000. In 2008, this loan was fully paid. 192 Adaro Energy Annual Report 2008 www.adaro.com Adaro in Summary From Us to You Running Adaro Management Report Owning Adaro PT ADARO ENERGY Tbk Schedule 560 FORMERLY PT PADANG KARUNIA AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2008 AND 2007 Expressed in million Rupiah, unless otherwise stated

38. TRANSACTIONS AND BALAN CES WITH RELATED PARTIES continued g.

Revenue 2008 2007 PT Berau Coal 597,416 411,337 Orchard Maritime Logistics Pte Ltd 2,135 - PT Padangbara Sukses Makmur 260 - Coaltrade Services International Pte Ltd - 1,945,832 PT Interex Sacra Raya - 55,157 Total 599,811 2,412,326 As a percentage of total revenue 3.31 20.81 Refer to Note 42 for further description of the transaction.

h. Cost of revenue

2008 2007 Cost of coal mining and trading: Orchard Maritime Logistics Pte Ltd 483,083 371,999 PT Rahman Abdijaya 413,569 80,684 PT Pulau Seroja Jaya 131,894 - PT Pulau Seroja Jaya Pratama 83,353 - PT Padangbara Sukses Makmur 16,693 133,212 PT Anugerah Buminusantara Abadi 20,281 19,162 PT Padang Sejahtera 8,070 9,498 Coaltrade Services International Pte Ltd - 58,903 Total 1,156,943 673,458 As a percentage of total cost of revenue 8.80 7.40 Refer to Note 42 for further description of the transaction.

i. Interest income and expenses

The interest income and expenses recognised by the Group for the loans received from related parties or the loans granted to related parties for the years ended 31 December 2008 and 2007 were as follows: 2008 2007 Interest income: PT Viscaya Investments - 171,518 Rachmalta Investments Ltd - 35,737 Arindo Holdings Mauritius Ltd - 312,655 PT Bahtera Alam Tamiang - 1,521 Total - 521,431 As a percentage of total interest income - 85.38 Interest expenses: PT Padangbara Sukses Makmur 159 310 As a percentage of total interest expense and finance charges 0.02 0.02 Since 2008, Visacaya, Rachmalta and Arindo Holdings have been consolidated to the Group’s consolidated financial statements, therefore balances and transactions between Viscaya, Rachmalta, Arindo Holdings and Adaro were eliminated.