Schedule 57 PT BAYAN RESOURCES AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2008 AND 2007 AND 31 DECEMBER 2007, 2006 AND 2005
Expressed in million Indonesian Rupiah, unless otherwise stated
1. GENERAL continued TSA continued
The principal activity of TSA is in the coal mining industry. TSA’s head office is located at Graha Irama Building, 12
th
floor, Jalan H.R. Rasuna Said, Block X-1 Kav. 1 - 2, South Jakarta.
On 13 October 1999, TSA entered into a CCoW with the Government of the Republic of Indonesia. The CCoW provides for a limited term for general survey, exploration, feasibility analysis, construction and
production and a 30-year term for mining operations. The CCoW area covered 99,690 hectares in West Kutai Regency, East Kalimantan. After several relinquishments, as approved by the Minister of Energy and Mineral
Resources of the Republic of Indonesia No. 03.K40.00DJB2007 dated 11 January 2007, the CCoW area was reduced to 5,838 hectares in West Kutai Regency, East Kalimantan.
Under the CCoW, TSA shall be entitled to certain tax incentives, such as exemption from import duties as well as VAT and income tax Article 22 of the Income Tax Law of 1994 on import of certain items not
produced in Indonesia. Effective 24 April 2005, based on the Minister of Energy and Mineral Resources’ Decree
No. 03.K40.00DJB2007 dated 11 January 2007, TSA has entered the construction stage with respect to a portion of the TSA contract area measuring 2,404 hectares which is valid until 23 April 2008. See Note 33o for
production stage permit granted to TSA after 31 March 2008. The remaining area measuring 3,434 hectares is still in the feasibility study stage for which the approval is valid until 11 April 2007. At the date of this report, the
area is still in the process of obtaining a construction stage permit from the Directorate General of Minerals, Coal and Geothermal. Management believes that there will be no difficulties in obtaining the extension of the rights.
As at 31 March 2008 and 2007 and 31 December 2007, 2006 and 2005, TSA had total employees of 68, 68, 46, 60 and 17 employees, respectively unaudited.
MP
MP was established based on Notarial Deed No. 12 dated 13 November 2000 of Yani Indrawaty Wibawa, S.H., notary in Jakarta, which has been approved by the Minister of Law and Human Rights of the
Republic of Indonesia through Decree No. C-03775 HT.01.01.TH.2002 dated 7 March 2002. The Articles of Association have been amended several times. The latest amendment was based on Notarial Deed No. 21 dated
6 December 2007, of Yani Indrawaty Wibawa, S.H., notary in Jakarta, regarding changes in authorised, issued and fully paid capital. This Deed was approved by the Minister of Law and Human Rights of the Republic of
Indonesia through the Decree No. AHU-00169.AH.01.02.Tahun 2008 dated 2 January 2008.
The principal activities of MP are conducting business in trading, construction, agency, printing, services, industrial, transportation, manufacture, forestry, agriculture, equipment rental and mining. As of
31 March 2008 and 31 December 2007, its primary asset is its 97.4 interest in GBP. MP’s head office is located in Graha Irama Building, 12
th
floor, Jalan H.R. Rasuna Said, Block X-1 Kav. 1 - 2, South Jakarta.
As at 31 March 2008 and 2007 and 31 December 2007, 2006 and 2005, MP did not have any employees unaudited.
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Schedule 58 PT BAYAN RESOURCES AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2008 AND 2007 AND 31 DECEMBER 2007, 2006 AND 2005
Expressed in million Indonesian Rupiah, unless otherwise stated
1. GENERAL continued KOTR
KOTR was established on 15 November 2006, based on Law No. 1 year 1967 regarding Foreign Capital Investment, based on Notarial Deed No. 16 of Yani Indrawaty Wibawa, S.H., notary in Jakarta, which has been
approved by the Minister of Law and Human Rights of the Republic of Indonesia in Decree No. W7-03188 HT.01.01-TH.2007 dated 26 March 2007.
The principal activity of KOTR is in the tyre vulcanizing industry. As at 31 March 2008, KOTR is in the development stage.
KOTR’s head office is located at Graha Irama Building, 12
th
floor, Jalan H.R. Rasuna Said, Block X-1 Kav. 1 - 2, South Jakarta.
As at 31 March 2008 and 2007, 31 December 2007 and 2006, KOTR had total employees of 1, nil, 3 and nil, respectively unaudited.
FSP
FSP was established on 23 September 1987 based on Notarial Deed No. 72 of Laden Mering, S.H., notary in Samarinda, which has been approved by the Minister of Law and Human Rights of the Republic of
Indonesia under Decree No. C.03913HT.01.01.TH2007 dated 21 November 2007. The Articles of Association have been amended several times. The latest amendment was based on Notarial Deed No. 14 dated 5 December
2007, of Bakhtiar, S.H., notary in Tenggarong, which legalised an Extraordinary General Meeting of Shareholders of FSP on 5 December 2007 regarding the changes in the Articles of Association relating to
General Shareholders Meeting and the transfer of 60,300 shares in FSP from Low Tuck Kwong to the Company.
This Deed was approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decree No. AHU-A.H.01.10.0718 dated 9 January 2008.
The principal activity of FSP is in the coal mining industry. FSP’s head office is located in Tenggarong, Kutai Kartanegara Regency.
As at 31 March 2008 and 2007 and 31 December 2007, 2006 and 2005, FSP did not have any employees unaudited.
Based on the Decree of the Regent of Kutai Kartanegara No. 54018KP-EPDPE-IVVII2005 dated 21 July 2005, FSP has been granted Exploitation Mining Rights for a consecutive twenty-year period to 21 July
2025. The mining area granted is 3,774 hectares. On 5 December 2003, FSP entered into a coal mining agreement with IP. According to the agreement,
FSP granted rights to IP to perform coal mining for and on behalf of FSP in accordance with the terms and conditions of the Mining Rights. On 1 February 2005, the agreement with IP was terminated.
On 1 February 2005, FSP entered into a novation of coal mining agreement with PT Pan Assets Indonesia “PAI”, a related party. Under the agreement, FSP granted PAI the right to perform coal mining activities in FSP’s
mining area in accordance with the terms and conditions of the Mining Rights refer to Note 28a.
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