Nature of Relationship and Transactions with Related Parties Nature of Relationship

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements December 31, 2012 and 2011 and January 1, 2011December 31, 2010 and For the Years then Ended December 31, 2012 and 2011 Figures are Presented in Millions of Rupiah, unless Otherwise Stated - 125 - Fair value of short term investments in securities shares that are traded in Indonesia Stock Exhange, bonds and units of mutual fund and segregated funds net assets - unit link based on fair value, net asset value published was calculated by investment manager.. Fair value of loans, consumer financing receivables, finance lease, factoring receivables, and other receivables are determined based on discounted cash flow analysis using market interest rate. There is no reliable basis for measuring the fair value of investment in shares Notes 2i and 17, thus, the investments in shares are stated at cost. Deposits and deposits from other banks have a demand feature, thus, the fair value is not less than the amount payable on demand discounted from the first date that the amount could be required to be paid which is equal to the carrying amount. The fair value of loan received is determined based on discounted cash flow analysis using market interest rates. Fair value of cash and cash equivalents, short-term investment in time deposits, placements with other banks, Bank Indonesia Intervention, export bill receivable, securities purchased under agreements to resell, securities agent receivables, segregated funds net assets – unit link investment receivable, other assets security deposits and money transfer, securities sold under agreement to repurchase, securities agent payables, accrued expenses, and other liabilities approximates the carrying value due to short term nature of transactions.

56. Agreements and

Engagements a. On June 6, 2008, the Company entered into room leasing agreement with ASM, a subsidiary, relating to lease at office building of Plaza Simas which is located at Jl. Fachrudin No. 20, Central Jakarta. The lease term is for 15 years, starting from October 1, 2008 up to October 1, 2023 Note 53. b. AJSM, a subsidiary, entered into cooperation agreements, wherein AJSM was appointed as insurance agent with third parties. The third parties are PT Bank Commonwealth Indonesia, PT Bank Mayapada Tbk, PT Bank Permata Tbk, PT Bank Muamalat Indonesia, PT Bank OCBC NISP Tbk, PT Bank Nusantara Parahyangan Tbk, PT Bank Windu Kentjana International Tbk, PT Bank BCA Syariah, BS, PT Bank Kesawan Tbk, PT Bank Syariah Mandiri, PT Bank UOB Buana Tbk, PT Bank Mega Tbk, PT ICB Bumiputera Indonesia Tbk, PT Bank International Indonesia Tbk, PT Bank Mutiara Tbk, PT Bank Victoria International Tbk, Bank of China Limited and some Bank Perkreditan Rakyat. c. SMF, a subsidiary, has entered into a Joint Financing Agreement by transferring Receivables Portfolio and Appointment as Security Agent and Chanelling Credit Transfer Agreement with BS Note 7. d. Since September 2006, ABSM, a subsidiary, entered into certain lease agreements operating lease with BS, a subsidiary, on motor vehicles and office equipment owned by ABSM with lease periods ranging from four 4 up to eight 8 years until 2014 Note 21. e. On October 22, 2007, SMF, a subsidiary, entered into operating lease agreement with BS on SMF’s automatic teller machine ATM. The operating lease agreement is valid from November 22, 2007 to January 20, 2012 and has been extended until January 22, 2016. PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements December 31, 2012 and 2011 and January 1, 2011December 31, 2010 and For the Years then Ended December 31, 2012 and 2011 Figures are Presented in Millions of Rupiah, unless Otherwise Stated - 126 -

57. Commitments and Contingencies

a. BS, a subsidiary, has commitments on purchases and sales of foreign currency Spot and Forward which have not yet been realized as of December 31, 2012 and 2011. Details are as follows: December 31, December 31, 2012 2011 Spot and forward contracts to purchase foreign currencies U.S Dollar 38,261 188,604 Euro 38,195 117,148 Singapore Dollar 964 - Total 77,420 305,752 Spot and forward contracts to sell foreign currencies U.S Dollar 39,244 700,278 Australian Dollar - 212 Euro 38,195 - Japan Yen 36,624 - Singapore Dollar 394 - Total 114,457 700,490 b. BS has commitments and contingent receivables and liabilities under export-import, guarantees and loans given to the customers as follows: December 31, December 31, 2012 2011 Commitments Commitment Liabilities Unused loan commitments granted to customers 219,849 125,400 Irrevocable Letters of Credit 47,542 44,878 Total 267,391 170,278 Contingencies Contingent receivables Past due interest revenues 27,721 19,946 Contingent liabilities Bank guarantees issued 572,274 490,301 Net 544,553 470,355 As of December 31, 2012 and 2011, the total commitments and contingencies transactions which consist of letters of credit and bank guarantees with related parties amounted to Rp 21,386 and Rp 45,617, respectively Note 53. As of December 31, 2012 and 2011, the average term of letters of credit are 1 up to 12 months and 1 up to 8 months, respectively, while for bank guarantees are from 18 days up to 38 months and 1 month up to 39 months, respectively.