Management Use of Estimates, Judgments and Assumptions

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements December 31, 2011 and 2010 and For the Years then Ended - 52 -

4. Cash and Cash Equivalents

This account consists of: 2011 2010 Rp 000,000 Rp 000,000 Cash on hand Rupiah 414,168 211,139 Foreign currencies Note 59 54,300 59,484 Total - Cash on hand 468,468 270,623 Cash in banks Related party Note 54 Foreign currencies Note 59 Bank International Ningbo, China 22,742 277 Third parties Rupiah PT Bank Central Asia Tbk 32,091 15,922 PT Bank Internasional Indonesia Tbk 7,665 7,752 PT Bank Negara Indonesia Persero Tbk 2,003 707 PT Bank CIMB Niaga Tbk 1,337 1,578 PT Bank Mandiri Persero Tbk 3,142 2,352 PT Bank Danamon Indonesia Tbk 246 10,120 PT BPR Modern Express - 1,414 PT BPR Irian Sentosa Pusat - 1,041 Others below Rp 1,000 million each 7,304 7,743 Total 53,788 48,629 Foreign currencies Note 59 PT Bank Mandiri Persero Tbk 19,338 21,662 Wells Fargo Bank, N.A, England 15,522 2,464 PT Bank Central Asia Tbk 14,731 33,471 United Overseas Bank, Singapore 12,947 4,730 OCBC, Singapore 7,035 3,153 Deutsche Bank Trust Company Americas, USA 4,608 - Bank of China, China 4,103 - Sumitomo Mitsui Banking Corporation, Japan 3,538 423 Deutsche Bank AG, Germany 3,193 - PT Bank Internasional Indonesia Tbk 2,653 4,833 Standard Chartered Bank, USA 1,723 1,705 Wells Fargo Bank, N.A, USA 1,433 1,402 DBS Bank, Hongkong 1,250 532 PT Bank CIMB Niaga Tbk 575 1,756 UBS AG, Switzerland 9 1,817 Others below Rp 1,000 million each 3,671 2,041 Total 96,329 79,989 Total - Cash in banks 172,859 128,895 PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements December 31, 2011 and 2010 and For the Years then Ended - 53 - 2011 2010 Rp 000,000 Rp 000,000 Demand deposits with Bank Indonesia Rupiah 1,060,349 674,610 Foreign currencies Note 59 284,225 393,309 Total - Demand deposits with Bank Indonesia 1,344,574 1,067,919 Time deposits Third parties Rupiah PT Bank Rakyat Indonesia Persero Tbk 1,205,540 2,600 PT Bank Bukopin Tbk 965,200 50,200 PT Bank Mutiara Tbk 541,500 132,441 PT Bank Negara Indonesia Persero Tbk 531,500 6,000 PT Bank CIMB Niaga Tbk 505,550 25,250 PT Bank Permata Tbk 505,500 500 PT BPD Jawa Barat dan Banten Tbk 501,500 1,000 PT Bank Pan Indonesia Tbk 500,000 - PT Bank Internasional Indonesia Tbk 340,950 197,174 PT Bank Tabungan Pensiun Nasional 300,000 - PT Bank ICBC Indonesia 200,000 - PT BPR Palu Lokadana Utama 80,000 - PT Bank Artha Graha Internasional Tbk 55,795 10,000 PT BPR Modern Express 40,000 - PT Bank Mega Tbk 35,000 - PT Bank Danamon Indonesia Tbk 25,000 7,800 PT Bank Central Asia Tbk 24,150 2,792 PT Bank Permata Tbk - Sharia Division 11,500 1,500 PT Bank ICB Bumiputera Indonesia Tbk 10,000 10,000 PT Bank Syariah Mandiri 9,910 11,350 PT Bank Internasional Indonesia Tbk - Sharia Division 6,800 1,700 PT BRI Syariah 5,550 2,800 PT Bank Bukopin Tbk - Sharia Division 5,300 3,800 PT Bank CIMB Niaga Tbk - Sharia Division 5,200 1,400 PT BNI Syariah 5,050 1,600 PT Bank Mandiri Persero Tbk 4,204 4,204 PT Bank Muamalat Indonesia Tbk 3,450 1,850 PT Bank Tabungan Negara - Sharia Division 2,850 1,650 PT Bank Central Asia Tbk - Sharia Division 2,500 2,000 PT Bank OCBC NISP Tbk 2,000 2,000 PT Bank Danamon Indonesia Tbk - Sharia Division 1,800 800 PT Bank Mega Syariah Indonesia 1,750 250 PT Bank DKI - Sharia Division 1,700 550 PT Bank Windu Kentjana International Tbk 1,300 - PT Bank Nusantara Parahyangan Tbk 1,000 1,000 PT Bank Mayora 1,000 - PT Bank Victoria International Tbk 500 20,300 Others below Rp 1,000 million each 3,374 1,116 Total 6,443,923 505,627 PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements December 31, 2011 and 2010 and For the Years then Ended - 54 - 2011 2010 Rp 000,000 Rp 000,000 Time deposits Third parties Foreign currencies Note 59 PT Bank Danamon Indonesia Tbk 63,476 - PT Bank Internasional Indonesia Tbk 20,969 5,210 PT Bank Mandiri Persero Tbk 5,125 1,665 Others below Rp 1,000 million each 1,107 570 Total 90,677 7,445 Total - Time deposits 6,534,600 513,072 Funds placed in securities companies Foreign currencies Note 59 Solomon Smith Barney, Singapore 3,063 - UBS AG, Singapore 226 431 Credit Suisse First Boston, Singapore 4 4 Citigroup Consulting Group Account - 1 Total - Funds placed in securities companies 3,293 436 Total 8,523,794 1,980,945 According to the regulation of Bank Indonesia, each bank in Indonesia is required to maintain a minimum liquidity reserve of a certain percentage of third party funds both in Rupiah and foreign currencies. As of December 31, 2011 and 2010 the balance of primary minimum liquidity reserves of BS, a subsidiary, in Rupiah, amounted to Rp 922,150 million and Rp 672,744 million, respectively, while the minimum liquidity reserves in foreign currencies amounted to Rp 282,698 million and Rp 30,694 million, respectively. As of December 31, 2011 and 2010, secondary minimum liquidity reserves of BS, in Rupiah, amounted to Rp 278,620 million and Rp 207,559 million, respectively. The minimum liquidity reserves as of December 31, 2011 and 2010 were determined in accordance with Bank Indonesia Regulation. As of December 31, 2011 and 2010, the balance of cash and cash equivalents in foreign currency amounted to US 60,828,216 and US 60,041,440, respectively Note 59. The interest rates per annum on cash in banks and time deposits are as follows: 2011 2010 Time deposits Rupiah 5.00 -12.00 4.48 - 10.00 Foreign currency 0.16 - 3.00 0.15 - 1.50 PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements December 31, 2011 and 2010 and For the Years then Ended - 55 - The changes in allowance for impairment losses on cash and cash equivalents are as follows: 2011 2010 Rp 000,000 Rp 000,000 Balance at the beginning of the year - 886 Adjustment on PSAK No. 55 Revised 2006 Note 2i - 886 Balance at the end of the year - - As of December 31, 2011 and 2010, no allowance for impairment losses was provided on cash and cash equivalents as management believes that cash and cash equivalents are collectible.

5. Short-term Investments

2011 2010 Rp 000,000 Rp 000,000 Time deposits 17,341 33,543 Placements with other banks - net 561,609 706,189 Securities - net 15,149,909 7,304,727 Total - net 15,728,859 8,044,459

a. Time deposits

2011 2010 Rp 000,000 Rp 000,000 Third parties Rupiah Bank PT Bank Internasional Indonesia Tbk 7,968 27,492 PT Bank ICB Bumiputera Tbk 5,000 - PT Bank BNI Syariah - 1,200 Others below Rp 1,000 million each 350 1,050 Total 13,318 29,742 PT Kliring Berjangka Indonesia 3,096 2,925 PT Kliring Penjaminan Efek Indonesia 927 876 Total 17,341 33,543 The interest rates per annum on time deposits in Rupiah are 6.75 - 8.75 in 2011 and 5.09 – 8.5 in 2010. Short-term Investment in form of time deposits included time deposits with maturities of more than three 3 months and guarantee deposits of ASO 2010, in compliance with the regulation of the Minister of Finance of the Republic of Indonesia under the name of the Minister of Finance on behalf of the subsidiary and time deposits of SMS and SF, subsidiaries, placed with PT Kliring Penjaminan Efek Indonesia and PT Kliring Berjangka Indonesia, respectively. PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements December 31, 2011 and 2010 and For the Years then Ended - 56 -

b. Placements with other banks

Placements with other banks as of December 31, 2011 and 2010, represent placements by BS, a subsidiary, with details as follows: 2011 2010 Rp 000,000 Rp 000,000 Rupiah Call money 470,000 - Time deposits 50,000 90,000 Total 520,000 90,000 Foreign currencies Note 59 Call money 40,850 566,039 Time deposits - 36,040 Deposits on Call 759 14,110 Total 41,609 616,189 Total 561,609 706,189 The interest rates per annum on placements with other banks are as follows: 2011 2010 Rupiah 4.64 - 5.75 6.00 Foreign currency 0.05 - 4.64 0.85 - 0.90 As of December 31, 2011 and 2010, the details of Rupiah call money and time deposits are as follows: 2011 2010 Rp 000,000 Rp 000,000 PT Bank Victoria International Tbk 110,000 - PT Bank Pan Indonesia Tbk 90,000 - PT Bank DBS Indonesia 70,000 - PT Bank Ekonomi Raharja Tbk 55,000 - PT Bank Muamalat Indonesia 50,000 - PT Bank Bukopin 45,000 - PT BPD Jawa Barat dan Banten 45,000 - PT BPD Riau Kepri 40,000 - PT Bank Index Selindo 15,000 - PT Bank BRI Syariah - 50,000 PT Bank Jabar Banten Syariah - 25,000 PT Bank Victoria Syariah - 15,000 Total 520,000 90,000 Name of Bank