CASH AND CASH EQUIVALENTS

166 Adaro Energy Annual Report 2009 From Us to Y ou Running Adaro Management Report Owning Adaro Governing Adaro Financial Report Contact Us Corporate Social Responsibility Adaro in Summary www.adaro.com PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 528 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2009 AND 2008 Expressed in million Rupiah, unless otherwise stated

7. TRADE RECEIVABLES continued

The aging analysis of trade receivables is as follows: 2009 2008 Current and overdue by 1 - 30 days 2,705,963 2,283,369 Overdue by 31 - 60 days 25,380 9,010 Overdue by 61 - 90 days 85,503 2,096 Overdue by more than 90 days 65,613 37,411 2,882,459 2,331,886 Details of trade receivables based on currencies are as follows: 2009 2008 US Dollars 2,090,029 629,361 Rupiah 792,430 1,702,525 2,882,459 2,331,886 As at 31 December 2009, the trade receivables of SIS amounting to Rp 566,445 including receivables from Adaro amounting to Rp 96,477 that had been eliminated were pledged as collateral for a Senior Credit Facility refer to Note 21b. As at 31 December 2009, the trade receivables of SDM amounting to Rp 21,721 were pledged as collateral for a loan from PT Bank OCBC NISP Tbk refer to Note 21c. Based on a review of the status of the individual receivable accounts at the end of the period, the Group’s management is of the opinion that these receivables will be collected in full, and therefore an allowance for doubtful accounts is not considered necessary.

8. ADVANCES AND PREPAYMENTS

2009 2008 Advances to suppliers 213,126 277,477 Advances for purchase of fuel 105,567 253,379 Prepaid rent and insurance 24,341 19,629 Others` 32,312 17,023 375,346 567,508 Advances to suppliers mostly represent advance payments for construction of the coal fired power plant and steam turbine generators.

9. INVENTORIES

2009 2008 Coal inventory 76,520 54,979 Tools and supplies 71,007 53,578 Spare parts 63,803 168,520 Fuel and lubricants 39,120 27,593 250,450 304,670 The Group’s management is of the opinion that the inventories can be either used or sold, and therefore a provision for obsolete stock is not considered necessary. As at 31 December 2009, Adaro’s coal inventories were covered by insurance against the risk of material damage with tota l coverage of Rp 75,200 US8 million. Inventories owned by IBT amounting to Rp 27,656 were covered by insurance against risk of loss and damage, which was included in the insurance for IBT’s fixed assets. Inventories other than those of Adaro’s coal and IBT’s inventories were not insured. The Group’s management is of the opinion that inventories are adequately insured for cover the risk of loss and damage. Adaro Energy Annual Report 2009 167 www.adaro.com PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 529 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2009 AND 2008 Expressed in million Rupiah, unless otherwise stated

10. DEFERRED EXPLORATION AND DEVELOPMENT EXPENDITURE 2009

2008 Acquisition costs Deferred exploration and development expenditure relating to the commercially producing areas South Paringin, North Paringin and Tutupan Carrying amount - beginning balance 349,365 300,518 Exchange difference due to financial statement translation 49,453 48,847 299,912 349,365 Deferred exploration and evaluation expenditure incurred for an area of interest which as at balance sheet date has not reached the commercial production stage Wara Carrying amount - beginning balance 52,509 45,167 Exchange difference due to financial statement translation 7,433 7,342 45,076 52,509 344,988 401,874 Accumulated amortisation Deferred exploration and development expenditure relating to commercially producing areas South Paringin, North Paringin and Tutupan Carrying amount - beginning balance 304,223 258,857 Amortisation 3,118 2,908 Exchange difference due to financial statement translation 43,363 42,458 263,978 304,223 81,010 97,651 11. DEFERRED FINANCING COSTS 2009 2008 Acquisition costs Carrying amount - beginning balance 211,962 79,645 Addition 106,961 105,408 Acquisition - 23,155 Exchange difference due to financial statement translation 4,921 15,661 Reversal of fully amortised balance 38,647 11,907 285,197 211,962 Accumulated amortisation Carrying amount - beginning balance 31,427 3,648 Amortisation 79,025 36,863 Exchange difference due to financial statement translation 21,487 2,823 Reversal of fully amortised balance 38,647 11,907 Total accumulated amortisation 93,292 31,427 191,905 180,535 Less: Current portion 51,195 36,243 Non-current portion 140,710 144,292 Deferred financing costs represent consultancy costs, bank charges, finance charges, professional fees and other costs that were incurred to obtain long-term borrowing.