Conditions in the Indonesian securities market may affect the price or liquidity of the Shares.

49 9. Downgrades of credit ratings of Indonesia and Indonesian companies could adversely affect the Company. In 1997, certain internationally recognized statistical rating organizations, including Moodys, Standard Poors and Fitch Ratings Fitch, downgraded Indonesias sovereign rating and the credit ratings of various credit instruments of the Government and a large number of Indonesian banks and other companies. As of June 30, 2015, Indonesias sovereign foreign currency long-term debt is rated Baa3 by Moodys, BB+ by Standard Poors and BBB- by Fitch. Sovereign foreign currency short-term debt is rated B by Standard Poors and F3 by Fitch. These ratings reflect an assessment of the Governments overall financial capacity to pay its obligations and its ability or willingness to meet its financial commitments as they become due. In addition, the global financial crisis also resulted in the default of numerous investment grade instruments. No assurance can be given that Moodys, Standard Poors, Fitch or any other statistical rating organization will not downgrade the credit ratings of Indonesia or Indonesian companies, or even that investment grade instruments will not fall into default. Any such downgrade or default could have an adverse impact on liquidity in the Indonesian financial markets and affect the ability of the Government and Indonesian companies, including the Company, to raise additional financing, the interest rates and other commercial terms at which such additional financing is currently available and may have a material adverse effect on the Companys business, cash flows, results of operations, financial condition and prospects. 10. Judgments of a foreign court may not be enforceable against the Company. The Company is a limited liability company established in Indonesia and substantially all of its assets are located in Indonesia. In addition, some of the Companys commissioners and all of its directors reside in Indonesia. As a result, it may be difficult for investors to effect service of process, including judgments, on the Company or its Commissioners and Directors outside Indonesia, or to enforce against its Commissioners and Directors judgments obtained in non- Indonesian courts. The Company has been advised by its Indonesian legal advisors that judgments of non-Indonesian courts are not enforceable in Indonesian courts, although such judgments could be admissible as non-conclusive evidence in a proceeding on the underlying claim in an Indonesian court. Re-examination of the underlying claim de novo would be required before an Indonesian court. There is doubt as to whether Indonesian courts will enter judgments in original actions brought in Indonesian courts predicated solely upon the civil liability provisions of jurisdictions other than Indonesia. As a result, investors in the Offer Shares may be required to pursue claims against the Company in Indonesia under Indonesian law, which would require re-examination of the underlying claim. The claims and remedies available under Indonesian law may not be the same or as extensive as those available in other jurisdictions. The Indonesian courts may not protect the interests of investors in the same manner or to the same extent as would U.S. courts. RISK RELATING TO THE SHARES

1. Conditions in the Indonesian securities market may affect the price or liquidity of the Shares.

Movements in domestic and international securities markets, economic conditions, foreign exchange rates and interest rates may affect the market price and demand for the Shares. The Shares and dividends, if any, are quoted and declared in Rupiah. Fluctuations in the exchange rate between Rupiah and other currencies will affect, among other things, the foreign currency value of the proceeds which a shareholder would receive upon sale of the Shares and the foreign currency value of dividend distributions. The Shares are listed on the IDX. The Indonesian capital markets are less liquid and more volatile than markets in the United States, the United Kingdom and many other countries. The IDX, on which the Shares are listed, has in the past experienced substantial fluctuations in the prices of listed securities. The IDX has experienced some problems which, were they to continue or recur, could affect the market price and liquidity of the securities of Indonesian companies, including the Shares. These problems have included closures of the exchange, broker defaults and strikes, settlement delays, and the bombing of the IDX building. In addition, the governing bodies of Indonesian stock exchanges have from time to time imposed restrictions on trading in certain securities, limitations on price movements and margin requirements. The levels of regulation and monitoring of the Indonesian securities markets and the activities of investors, brokers and other market participants are not the same as in certain other countries. In addition, the ability to sell and settle trades on the IDX may be subject to delays. In light of the foregoing, a shareholder may not be able to dispose of its Shares at the prices or at times at which such holder would be able to do so in a more liquid or less volatile markets or at all. 2. The Companys ability to pay dividends in the future will depend upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures and will be paid in Rupiah. The amount of the Companys future dividend payments, if any, will depend on its future earnings, financial condition, 50 cash flows, working capital requirements and capital expenditures. The Companys Board of Directors may not recommend and its shareholders may not approve the payment of dividends. The Company may incur expenses or liabilities that would reduce or eliminate the cash available for distribution of dividends. If the Company does not pay cash dividends on the Shares, its shareholders may not receive any return on investment in the Shares unless they sell the Shares at a price higher than the price at the time of purchase. Under the Company Law, the Company may distribute a final dividend to shareholders only if the Company has booked a positive profit balance after deduction for setting aside part of its positive profit balance for its mandatory reserves at the close of its financial year i.e. all net profit booked at the close of its financial year covers all accumulated losses from previous financial years. A part of net profits will have to be set aside for the Companys mandatory reserves until the reserve reaches at least 20 of the Companys paid-up and issued capital. As at June 30, 2015, the amount of the Companys prescribed mandatory reserves was 20.5 of the Companys total issued and paid up capital.

3. The he rights of minority shareholders may be more limited than in other jurisdictions.