RESTRICTED CASH AND CASH EQUIVALENTS

Adaro Energy Annual Report 2009 167 www.adaro.com PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 529 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2009 AND 2008 Expressed in million Rupiah, unless otherwise stated

10. DEFERRED EXPLORATION AND DEVELOPMENT EXPENDITURE 2009

2008 Acquisition costs Deferred exploration and development expenditure relating to the commercially producing areas South Paringin, North Paringin and Tutupan Carrying amount - beginning balance 349,365 300,518 Exchange difference due to financial statement translation 49,453 48,847 299,912 349,365 Deferred exploration and evaluation expenditure incurred for an area of interest which as at balance sheet date has not reached the commercial production stage Wara Carrying amount - beginning balance 52,509 45,167 Exchange difference due to financial statement translation 7,433 7,342 45,076 52,509 344,988 401,874 Accumulated amortisation Deferred exploration and development expenditure relating to commercially producing areas South Paringin, North Paringin and Tutupan Carrying amount - beginning balance 304,223 258,857 Amortisation 3,118 2,908 Exchange difference due to financial statement translation 43,363 42,458 263,978 304,223 81,010 97,651 11. DEFERRED FINANCING COSTS 2009 2008 Acquisition costs Carrying amount - beginning balance 211,962 79,645 Addition 106,961 105,408 Acquisition - 23,155 Exchange difference due to financial statement translation 4,921 15,661 Reversal of fully amortised balance 38,647 11,907 285,197 211,962 Accumulated amortisation Carrying amount - beginning balance 31,427 3,648 Amortisation 79,025 36,863 Exchange difference due to financial statement translation 21,487 2,823 Reversal of fully amortised balance 38,647 11,907 Total accumulated amortisation 93,292 31,427 191,905 180,535 Less: Current portion 51,195 36,243 Non-current portion 140,710 144,292 Deferred financing costs represent consultancy costs, bank charges, finance charges, professional fees and other costs that were incurred to obtain long-term borrowing.