ADVANCES FOR PLASMA PLANTATIONS – NET continued Advances for Plasma plantations

PT SAMPOERNA AGRO Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Six Months Ended June 30, 2007 and 2006 Expressed in thousands of Rupiah, unless otherwise stated 22

8. ADVANCES FOR PLASMA PLANTATIONS – NET continued Advances for Plasma plantations

Management believes that the provision for Plasma plantations is adequate to cover possible losses arising from unrecoverable Plasma plantations. The Company is developing Plasma plantations under an “Anak Angkat Bapak Angkat” AABA scheme and financed in the form of “Kredit Usaha Kecil” KUK and “Kredit Koperasi Primer untuk Anggota” KKPA. Aek Tarum and Mutiara Bunda Jaya are or have been involved in Plasma schemes implemented under Indonesian Government guidelines whereby companies assume responsibility for developing plantations to the productive stage for transfer to Plasma participants under a PIR-Trans “Perkebunan Inti Rakyat - Transmigrasi” scheme. Telaga Hikmah has been developing Plasma plantation under KKPA scheme. Once the plantation areas reach the production stage, these areas will be transferred to Plasma participants who will receive two hectares each. The Company The Plasma plantations costs as of June 30, 2007, represent the cost of development of 1,316 hectares of Plasma areas, for approximately 658 Plasma participants. The Company, on behalf of Plasma participants, is in the process of obtaining bank financing for the new Plasma areas through the “Kredit Koperasi Primer Anggota” program. Mutiara Bunda Jaya Mutiara Bunda Jaya is involved in developing 8,296 hectares of Plasma oil palm plantations for 4,273 farmers in the vicinity of the Inti plantation area. Following approval from PT Bank Rakyat Indonesia Persero Tbk BRI, the Company has transferred Plasma loan facility to Plasma participants amounting to Rp5,517,088 for 560 hectares to 280 Plasma participants in 2005 and amounting to Rp20,449,576 for 2,308 hectares to 1,154 Plasma participants in 2004. . Telaga Hikmah Advances for Plasma plantations in which Telaga Hikmah represent expenditures related to the development of Plasma oil palm plantations still in the development stage. Based on the restructuring agreement between the Telaga Hikmah and Bank Rakyat Indonesia Persero Tbk BRI No. R.479- MENDPBAKH082000 dated August 21, 2000, Telaga Hikmah’s commitment to develop Plasma areas was reduced from 15,000 hectares to 5,000 hectares. As of June 30, 2007, Telaga Hikmah had planted 3,684 hectares for 1,842 Plasma participants. Following approval from BRI, the Company has transferred Plasma loan facility to Plasma participants amounting to Rp4,483,716 for 248 hectares to 124 Plasma participants in 2006 and amounting to Rp8,135,775 for 450 hectares to 225 Plasma participants in 2005. PT SAMPOERNA AGRO Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Six Months Ended June 30, 2007 and 2006 Expressed in thousands of Rupiah, unless otherwise stated 23

8. ADVANCES FOR PLASMA PLANTATIONS – NET continued Investment