Acquisition of PT Alam Tri Abadi continued

148 Adaro Energy Annual Report 2008 www.adaro.com Adaro in Summary From Us to You Running Adaro Management Report Owning Adaro PT ADARO ENERGY Tbk Schedule 516 FORMERLY PT PADANG KARUNIA AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2008 AND 2007 Expressed in million Rupiah, unless otherwise stated

3. ACQUISITIONS AND DISPOSALS OF SUBSIDIARIES continued

g. Disposal of PT Padang Mulia

On 28 February 2007, the Company disposed of all of its 90 interest in PT Padang Mulia “PM” to BAS and AK for Rp 1,125. This disposal was accounted for as required under PSAK No. 38 Revised 2004, since the Company, BAS and AK are entities under common control. 2007 Cash and cash equivalents 11 Prepayments 46 Amounts due from related parties 625 Fixed assets, net 69 Deferred expenses, net 8,525 Trade payables 1,515 Taxes payable 254 Amounts due to related parties 6,736 Net assets 771 Interest disposed of 90 Net assets disposed of 694 Adjustment to net assets disposed of: - Difference in value from restructuring transactions of entities under common control 1,272 - Adjustment to the net assets of the subsidiary eliminated previously in the consolidation process 841 Cash received from disposal of subsidiary 1,125 Cash and cash equivalents in PM 11 Net cash inflow from disposal of subsidiary 1,114

h. Disposal of PT Talenta Bumi

On 23 February 2007, the Company disposed of all of its 70 interest in PT Talenta Bumi “TB” to BAS and AK for Rp 175. This disposal was accounted for as required under SFAS No. 38 Revised 2004, since the Company, BAS and AK are entities under common control. 2007 Net liabilities disposed of 49,189 Adjustment to net liabilities disposed of: - Difference in value from restructuring transactions of entities under common control 56,367 - Adjustment to the net assets of the subsidiary eliminated previously in the consolidation process 7,003 Cash received from disposal of subsidiary 175 Cash and cash equivalents in TB 92 Net cash inflow from disposal of subsidiary 83

i. Disposal of PT Anugerah Kasih

On 23 February 2007, the Company disposed of all of its interest in AK to Theodore Permadi Rachmat and Garibaldi Thohir the “Buyers” for Rp 990. The disposal was accounted for as required under SFAS No. 38 Revised 2004, since the Buyers are controlling parties of the Company. 2007 Cash and cash equivalents - Amounts due from related parties 1,000 Net assets 1,000 Interest disposed of 99 Net assets disposed of 990