Administration Adaro Energy 2008 Annual Report English

190 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 558 FORMERLY PT PADANG KARUNIA AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2008 AND 2007 Expressed in million Rupiah, unless otherwise stated

38. TRANSACTIONS AND BALANCES WITH RELATED PARTIES continued c.

Loans to related parties continued The interest rates on loans to related parties are as follows: 2008 2007 Rupiah - 12 US Dollars - 4.0-11.6 PT Viscaya Investments On 2 November 2007, Adaro provided an unsecured loan facility of US182,181,957 to Viscaya as amended on 8 December 2007. The loan bears an interest rate at LIBOR plus a certain percentage per annum or other interest rate agreed by both parties. If there is no repayment during the loan period, the accrued interest is capitalised and added to the loan principal. Viscaya will repay all the loan principal and accrued interest on Adaro’s request or in the fifteenth year from the first time the facility was used. As at 31 December 2007, the outstanding loan was US182,941,428. On 22 September 2008, Viscaya and Adaro entered into an amendment agreement to the effect that since 1 April 2008 there is no interest charged for this loan. As at 31 December 2008, Viscaya has been consolidated into the Group, and therefore balances and transactions between Viscaya and Adaro have been eliminated. Rachmalta Investments Ltd An unsecured loan of US26,552,500 was granted by Adaro to Rachmalta on 22 June 2005 as amended on 30 September 2005. This loan was related to the LBO transactions. The loan will be repaid by Rachmalta on 21 June 2020. The loan bears a fixed interest rate per annum and is payable quarterly commencing on 22 September 2005. As at 31 December 2007, the outstanding loan was US35,622,742. On 22 September 2008, Rachmalta and Adaro entered into an amendment agreement to the effect that since 1 April 2008 there is no interest charged for this loan. As at 31 December 2008, Rachmalta has been consolidated into the Group, and therefore balances and transactions between Rachmalta and Adaro have been eliminated. Arindo Holdings Mauritius Ltd An unsecured loan of US456,800,000 was granted by Adaro to Arindo Holdings on 8 December 2005 as amended on 25 July 2006. This loan was related to the LBO transactions. The loan is repayable by Arindo Holdings on 8 December 2010. The loan bears a fixed interest rate per annum and is payable semi-annually commencing on 8 June 2006. Based on the amendment of the agreement, the interest rate changed commencing 25 July 2006. As at 31 December 2007, the outstanding loan was US254,192,655. On 22 September 2008, Arindo Holdings and Adaro entered into an amendment agr eement to the effect that since 1 November 2008 there is no interest charged for this loan. Since 31 December 2008, Arindo Holdings has been consolidated into the Group, and therefore balances and transactions between Arindo Holdings and Adaro have been eliminated. PT Alhasanie “ALH” Based on a loan agreement on 1 March 2005, the Company agreed to provide a loan facility to ALH amounting to Rp 25,000 which is used for working capital purposes. As at 31 December 2007, the oustanding loan was Rp 4,033 and US4,362,092. On 30 January 2008, this loan was fully repaid.

d. Trade payables to related parties

2008 2007 Orchard Maritime Logistics Pte Ltd 147,739 108,023 PT Rahman Abdijaya 61,581 58,720 PT Pulau Seroja Jaya 21,882 - PT Pulau Seroja Jaya Pratama 16,428 - PT Anugerah Buminusantara Abadi 1,756 6,290 PT Padangbara Sukses Makmur - 6,749 PT Padang Sejahtera - 2,540 Total 249,386 182,322 As a percentage of total liabilities 1.27 1.52