Loans SMMA 2014AR. SMMA 2014AR

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements For the Years Ended December 31, 2014 and 2013 Figures are Presented in Millions of Rupiah,unless Otherwise Stated PT Super Wahana Tehno SWT On June 17, 2013, the Company has sold all its shares of stock in PT Super Wahana Tehno, for a selling price of Rp 15,048, accordingly, the Company realized a gain on sale of investment amounting to Rp 4,427.

b. Subsidiaries’ investments in shares of stock

2014 2013 Equity Method PT Bintang Rajawali Perkasa 176,027 100,281 PT Asuransi Sumit Oto 65,401 57,948 PT LIG Insurance Indonesia 44,514 29,266 Subtotal 285,942 187,495 Available for sale - acquisition cost Aries Capital Partner II 43,548 43,548 PT Bursa Komoditi dan Derivatif Indonesia 7,000 8,000 PT Kustodian Sentral Efek Indonesia 6,600 6,600 PT Pemeringkat Efek Indonesia 3,500 350 Nanjing Sinar Mas Zi Jin Private Equity 3,214 3,214 Konsorsium Asuransi Risiko Khusus - PT Tugu Reasuransi Indonesia 3,000 3,000 PT Asuransi MAIPARK Indonesia 1,832 1,805 Fair Oil Energy Insurance Syndicate 455 455 Nanjing Zidong International Creative Park Private Equity 161 161 PT Damai Indah Padang Golf 140 140 PT Bursa Efek Indonesia 135 135 PT Sedana Golf 101 101 PT Menara Proteksi Indonesia 20 20 Subtotal 69,706 67,529 Fair value - temporary investment PT Artha Pilar Perkasa 173,800 - Total 529,448 255,024 Equity Method PT LIG Insurance Indonesia PT LIG Insurance Indonesia LIG is a joint venture with LG Korea. ASM has 30 ownership interest in LIG. PT Asuransi Summit Oto PT Asuransi Summit Oto ASO is a joint venture with Djohan Marzuki and PT Summit Investment Indonesia. Ownership ASM on ASO was 48. Available for Sale – Acquisition Cost In 2013, NSZ made investment in shares of Nanjing Sinar Mas ZiJin Private Equity and Nanjing Zidong International Creative Park Private Equity amounting to CNY 2,000,000 equivalent with Rp 3,214 and CNY 100,000 equivalent with Rp 161, or representing 1.04 and 1, respectively, and NSZ as investment manager. - 81 - PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements For the Years Ended December 31, 2014 and 2013 Figures are Presented in Millions of Rupiah,unless Otherwise Stated Fair Value – Temporary Investment In 2014, BS, subsidiary and the shareholder of PT Teknology Energy Terpadu TET, BS’ debtor, signed a Sale and Purchase Agreement which is documented in Notarial Deeds No. 24 and 26 dated November 7, 2014, of Yulia S.H., public notary in Jakarta, in relation to sale of 600 shares 100 of PT Artha Pilar Perkasa APP engaging in trading, service, constructing and industry business which are owned by the shareholders of TET. The aforementioned sale is in relation to the restructuring of BS’s receivable from TET. The said sale of shares has been approved in Extraordinary Stockholders’ Meeting of APP which was held on February 28, 2015. BS recognized the purchase of APP’s shares as Temporary Investment. In accordance with Bank Indonesia Regulation No. 1511PBI2013 on the Precautionary Principle Capital Investment Activity, BS did not consolidate the financial statements of APP with BS’ financial statements, because the investment is temporary and has a different type of business with the Company. This temporary investment in APP will be disposed through sale. Management believes that this temporary investment can be sold in the near future. 18. Investment Properties As of December 31, 2014 and 2013, these represent investments in land and building. Following are the balances of and changes in investment properties and the related accumulated depreciation: January 1, December 31, 2014 Additions Deductions 2014 At Cost Land 4,778 12,338 - 17,116 Building 223,182 3,315 - 226,497 227,960 15,653 - 243,613 Accumulated Depreciation Building 32,330 12,460 - 44,790 Net Book Value 195,630 198,823 Changes during 2014 January 1, December 31, 2013 Additions Deductions Acquisition 2013 At Cost Land 4,400 378 - - 4,778 Building 11,724 8,036 517 203,939 223,182 16,124 8,414 517 203,939 227,960 Accumulated Depreciation Building 5,827 4,463 414 22,454 32,330 Net Book Value 10,297 195,630 Changes during 2013 Depreciation charged to operations for the years ended December 31, 2014 and 2013 amounted to Rp 12,460 and Rp 4,463, respectively. - 82 - PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements For the Years Ended December 31, 2014 and 2013 Figures are Presented in Millions of Rupiah,unless Otherwise Stated As of December 31, 2014 and 2013, the fair value of investment property of ASM, subsidiary, amounted to Rp 23,093 and Rp 22,664 based on independent appraisal report of Ihot, Dolar Raymond dated February 9, 2015 and February 10, 2014, respectively. Deductions in investment property pertain to the sale of certain investment properties with details as follows: 2013 Selling price 2,000 Carrying value 103 Gain on sale of investment properties Note 42 1,897 Investment properties are insured with ASM, a subsidiary and other insurance companies, third parties, for Rp 352,800 and US 1,051,545 in 2014 and Rp 352,800 and US 1,237,112 in 2013. Management believes that the insurance coverages are adequate to cover any possible losses that might arise from the assets insured. Management believes that there is no impairment in value of the aforementioned assets as of December 31, 2014 and 2013.

19. Property and Equipment

January 1, December 31, 2014 Additions Deductions Reclassifications 2014 At cost Direct acquisitions Land 381,978 63,898 - 47,264 493,140 Buildings 1,036,621 68,204 - 17,438 1,122,263 Office equipment 832,257 121,088 8,185 - 945,160 Motor vehicles 246,037 17,022 12,199 - 250,860 Furniture and fixtures 48,178 22,879 177 - 70,880 Machineries and equipment 55,570 2,576 44,548 - 13,598 Construction in progress 573,197 313,663 - 64,702 822,158 Total 3,173,838 609,330 65,109 - 3,718,059 Accumulated depreciation Direct acquisitions Buildings 178,249 55,018 - - 233,267 Office equipment 380,879 108,771 7,980 - 481,670 Motor vehicles 133,499 29,730 8,468 - 154,761 Furniture and fixtures 29,903 8,671 164 - 38,410 Machineries and equipment 35,015 5,395 32,905 - 7,505 Total 757,545 207,585 49,517 - 915,613 Net Book Value 2,416,293 2,802,446 Changes during 2014 - 83 - PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements For the Years Ended December 31, 2014 and 2013 Figures are Presented in Millions of Rupiah,unless Otherwise Stated January 1, December 31, 2013 Additions Deductions Acquisition Reclassifications 2013 At cost Direct acquisitions Land 322,037 61,798 1,857 - - 381,978 Buildings 782,427 224,330 357 - 30,221 1,036,621 Office equipment 690,625 150,567 9,859 924 - 832,257 Motor vehicles 238,153 16,551 8,667 - - 246,037 Furniture and fixtures 36,115 11,167 38 934 - 48,178 Machineries and equipment 41,693 14,174 297 - - 55,570 Construction in progress 310,471 292,947 - - 30,221 573,197 Total 2,421,521 771,534 21,075 1,858 - 3,173,838 Accumulated depreciation Direct acquisitions Buildings 133,670 44,579 - - - 178,249 Office equipment 285,609 103,922 8,876 224 - 380,879 Motor vehicles 107,880 31,580 5,961 - - 133,499 Furniture and fixtures 21,862 7,813 32 260 - 29,903 Machineries and equipment 27,995 7,210 190 - - 35,015 Total 577,016 195,104 15,059 484 - 757,545 Net Book Value 1,844,505 2,416,293 The carrying values of property and equipment of RLS, acquisition subsidiary Note 1 Changes during 2013 Depreciation charged to operations in 2014 and 2013 amounted to Rp 207,585 and Rp 195,104, respectively. Depreciation which were included in other expenses - direct cost of service center in 2014 and 2013 amounted to Rp 1,741 and Rp 1,863, respectively Note 46. As of December 31, 2014, construction in progress represent building construction in Jakarta, Pekalongan, Bengkulu, Yogyakarta, Garut, Bojonegoro, NTT Ende Kaliurang, Pekanbaru, Klaten, Cilacap, Purwakarta, Merauke, Jombang, Nusa Tenggara Barat and Bandung with contract value of Rp 106,941 and USD 89,815,000 and estimated date of completion is in 2015-2016, with contractual commitment amounts of Rp 50,655 and USD 18,865,441. Deductions in property and equipment pertain to the sale of certain property and equipment with details as follows: 2014 2013 Selling price 16,444 8,109 Net book value 15,592 6,016 Gain on sale of property and equipment Note 42 852 2,093 Property and equipment are insured with ASM, a subsidiary, and other insurance companies amounting to Rp 2,020,149 and USD 2,872,920 as of December 31, 2014 and Rp 1,893,724 and USD 3,072,920 as of December 31, 2013. Management believes that the insurance coverages are adequate to cover any possible losses that might arise from the assets insured. Management believes that there is no impairment in value of the aforementioned assets as of December 31, 2014 and 2013. - 84 - PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements For the Years Ended December 31, 2014 and 2013 Figures are Presented in Millions of Rupiah,unless Otherwise Stated

20. Foreclosed Properties

Foreclosed properties were obtained by SMF and BS, subsidiaries, from settlement of their receivables from and loans to customers. 2014 2013 Land, houses, and apartments 104,022 75,564 Vehicles 29,434 27,925 Heavy equipment 12,460 12,504 Others 375 - Total 146,291 115,993 Allowance for impairment losses 3,477 3,227 Net 142,814 112,766 These foreclosed properties are not insured. At this point in time, SMF and BS are still in the process of selling the foreclosed properties, i.e. by cooperating with property agents to sell the land, houses and apartment units. The changes is allowance for impairment losses on foreclosed properties are as follows: 2014 2013 Balance at the beginning of the year 3,227 1,664 Provisions during the year 250 1,563 Balance at the end of the year 3,477 3,227 As of December 31, 2014 and 2013, management believes that the allowance for impairment losses is adequate to cover the possible losses which might arise from the decline in values of the foreclosed properties. 21. Other Assets 2014 2013 Prepaid expenses 405,569 302,805 Advanced payment for purchase of property and equipment 234,714 274,400 Deferred acquisition cost 175,600 33,155 Inventories 56,003 26,882 Advanced payment for buildings renovation 33,326 37,188 Security deposits 33,264 25,940 Prepaid taxes 21,028 16,711 Goodwill 6,852 6,852 Advances for investment 500 500 Others 43,368 52,639 Total 1,010,224 777,072 Prepaid expenses include prepayments of office rental, shares administration charges, stamp duties and insurance premiums. - 85 -