GENERAL continued Establishment of the Company and other information

142 Adaro Energy Annual Report 2009 From Us to Y ou Running Adaro Management Report Owning Adaro Governing Adaro Financial Report Contact Us Corporate Social Responsibility Adaro in Summary www.adaro.com PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 54 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2009 AND 2008 Expressed in million Rupiah, unless otherwise stated

1. GENERAL continued

b. Subsidiaries continued

Commencement Percentage Total assets Business of commercial Year of of ownership in billion Rupiah, Subsidiaries activity Domicile operations acquisition before elimination 2009 2008 2009 2008 Indirect continued Orchard Investment Netherlands - 2009 95 - 3 - Maritime Netherlands B.V. “OMN” PT Sarana Multi Investment Indonesia - 2009 100 - 1,261 - Persada “Sarana” a PT Maritim Coal handling Indonesia 2004 2009 100 - 1,244 - Barito Perkasa and barging “MBP” PT Harapan Coal handling Indonesia 2004 2009 100 - 13 - Bahtera and barging Internusa “HBI” PT Maritim Service Indonesia - 2009 72 - 6 - Indonesia “Marindo” Joyce Corner Investment Seychelles - 2009 80 - 94 - International Ltd “JCI” a and subsidiaries b have been liquidated in October 2009.

c. Coal Cooperation Agreement

Adaro’s activities are governed by the provision of Coal Cooperation Agreement “CCA” which was entered into by Adaro and PT Tambang Batubara Bukit Asam Persero Tbk “PTBA”, formerly Perusahaan Negara Tambang Batubara, on 16 November 1982. Based on Presidential Decree No. 751996 dated 25 September 1996 and the amendment to the CCA No. J2Ji.DU5282 between PTBA and Adaro on 27 June 1997, all rights and obligations of PTBA under the CCA were transferred to the Government of the Republic of Indonesia represented by the Minister of Mines and Energy, effective from 1 July 1997. Under the terms of the CCA, Adaro acts as a contractor for the Government which is responsible for coal mining operations in an area located in South Kalimantan. Adaro commenced its 30-year operating period on 1 October 1992 with coal produced from the Paringin area of interest. Adaro is entitled to 86.5 of the coal produced with the remaining 13.5 being the Government’s share of production. Commencing on 1 July 1999, Adaro adopted the sales-based cash royalty method in accordance with government regulations to satisfy the Government’s production entitlement. Adaro’s sales reflect 100 of the revenue generated from coal sales and the government royalty expense is recorded as a cost of revenue.