MONETARY ASSETS AND LIABILITIES SEGMENT REPORTING

Adaro Energy Annual Report 2009 193 www.adaro.com PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 555 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2009 AND 2008 Expressed in million Rupiah, unless otherwise stated

38. SEGMENT REPORTING continued 2008

Coal mining and Mining trading service Others Eliminations Consolidated Profitloss before income tax 3,648,810 471,599 4,509 257,016 2,924,704 Income tax expensebenefit 1,624,907 11,075 38,694 50,550 1,601,976 Extraordinary Item 372,741 - - - 372,741 Pre-acquisition income - - - 126,390 126,390 Minority interest in net loss of subsidiaries - - - 63,601 63,601 Net incomeloss 1,651,162 460,524 34,185 269,255 887,198 Segment assets 16,716,829 4,338,571 5,507,644 7,157,126 33,720,170 Segment liabilities 13,333,697 3,902,683 9,059,740 6,603,574 19,692,546 Capital expenditure 217,513 1,117,176 855,029 2,903 2,192,621 Depreciation and amortisation 66,003 292,060 43,678 557,379 959,120 Information concerning the Group’s geographical segment for the years ended 31 December 2009 and 2008 is as follows: 2009 Indonesia Asia Europe America Total Revenue: Coal mining and trading 6,015,047 14,966,410 2,949,503 1,360,142 25,291,102 Mining services 1,167,642 - - - 1,167,642 Others 379,165 100,111 - - 479,276 Revenue 7,561,854 15,066,521 2,949,503 1,360,142 26,938,020 Segment assets 37,795,344 4,670,064 - - 42,465,408 Capital expenditure 1,313,572 115,964 - - 1,429,536 2008 Indonesia Asia Europe America Total Revenue: Coal mining and trading 3,878,805 9,034,706 2,754,709 1,129,136 16,797,356 Mining services 1,069,250 - - - 1,069,250 Others 188,628 37,268 - - 225,896 Revenue 5,136,683 9,071,974 2,754,709 1,129,136 18,092,502 Segment assets 28,010,589 5,696,667 12,914 - 33,720,170 Capital expenditure 2,192,437 184 - - 2,192,621 39. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES

a. Coal mining, transportation, barging, transhipment, and other agreements

Adaro, as a coal producer, has entered into a number of coal mining agreements. Based on the agreements, Adaro is required to pay contractors a service fee, calculated on a monthly basis, based on a formula which includes the amount of raw coal and overburden mined and transported. The contractors will provide all equipment, machinery, appliances and o ther supplies necessary for performing the mining and transportation services, and are required to meet certain minimum production requirements. In addition, Adaro has also entered into coal barging, transport and transhipment agreement with contractors t o provide coal transportation services from Adaro’s main area to certain port destinations. Adaro is required to pay contractors a service fee, calculated on a monthly basis, based on a formula which includes the amount of coal transported. 194 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 556 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2009 AND 2008 Expressed in million Rupiah, unless otherwise stated

39. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES continued a.

Coal mining, transportation, barging, transhipment, and other agreements continued In addition, Adaro has also entered into a fuel supply agreement with PT Shell Indonesia “Shell”. Adaro is required to pay Shell a price, based on a formula which includes the amount of fuel supplied and the market price of fuel. Adaro is also required to purchase a certain minimum yearly volume of fuel. Contractor Agreement type Agreement date Contract period end PT Pamapersada Nusantara Coal mining and transportation 7 September 2009 31 July 2013 PT Bukit Makmur Mandiri Utama Coal mining and transportation 13 November 2008 31 December 2013 PT Rahman Abdijaya Coal mining and transportation 14 December 2008 31 December 2013 PT Rante Mutiara Insani Coal mining and transportation 22 February 2010 22 February 2015 PT Pulau Seroja Jaya and PT Pulau Seroja Jaya Pratama Coal barging 30 November 2007 31 December 2010 PT Batuah Abadi Lines Coal barging 18 February 2000 30 June 2012 PT Shell Indonesia Fuel supply 8 December 2009 1 October 2022 SIS provides mining contractor services to various coal producers. Under the agreements, SIS provides labour, equipment and material for overburden removal, coal mining and coal and overburden hauling, and is required to meet certain minimum production requirements for these activities. SIS receives a service fee calculated on a monthly basis, based on a formula which includes several adjustment clauses. Coal producer Agreement date Contract period or production level metric tonnesMT PT Berau Coal Binungan H3N 22 November 2004 31 December 2010 PT Berau Coal Binungan H4 27 December 2004 31 December 2010 PT Berau Coal Binungan Blok 1-4 1 March 2007 31 December 2010 PT Berau Coal Sambarata 25 February 2004 31 December 2011 PT Berau Coal Sambarata Blok B-1 21 January 2008 14 July 2012 PT Sumber Kurnia Buana 10 May 2005 9 May 2010 or certain production level PT Borneo Indobara 17 October 2006 31 August 2014 or certain production level PT Indomining 14 August 2007 13 August 2012 or certain production level PT Tunas Muda Jaya 8 April 2009 2013 or certain production level The receivables arising from coal mining contract between SIS and the coal producers were pledged under the Senior Credit Facility refer to Note 21b. All of these agreements are pledged against the Senior Credit Facility refer to Note 21b.

b. Land-Use Cooperation Agreement

On 4 November 2009, MSW and the Government of Tabalong Regency entered into a land-use cooperation agreement for the cooperation to use 100.2 hectares of land from the Government of Tabalong Regency, located in Mabu’un village, Murung Pudak Sub-District, Tabalong Regency, in relation to the construction and operation of “Pembangkit Listrik Tenaga Uap” “Coal fired Power Plant” or “PLTU”. The Government of Tabalong Regency will provide the right to use the land, which subsequently could request to have the land rights for 30 years and this could be extended according to the prevailing law. As a compensation for land rights, MSW will supply electricity of 1.5 Mega Watts for regency street lighting.

c. Litigation

Dianlia was involved in litigation with Beckkett Pte Ltd “Beckkett” relating to a foreclosure sale of 40 of the shares in Adaro and IBT the “Pledged Shares” by Deutsche Bank AG, Singapore branch “Deutsche Bank” to Dianlia in 2002 following a default on a loan to a subsidiary of Beckkett in 1998. Beckkett filed a litigation against Deutsche Bank in Singapore for damages alleging, among other things, that Deutsche Bank failed to obtain the best price for the Pledged Shares according to the foreclosure sale the Suit. In early 2005, Beckkett applied to the Singapore High Court to add Dianlia as an additional defendant to the Suit and sought restoration of the Pledged Shares or damages if the foreclosure sale was validated.