Earnings per share GENERAL

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 30 June 2012 unaudited and 31 December 2011 audited and For the period of six months ended 30 June 2012 and 2011 unaudited Expressed in thousand of rupiah, unless otherwise stated 26 impairment loss is increased or reduced by adjusting the allowance for impairment account. If a future write-off is later recovered, the recovery is recognized in the consolidated statements of comprehensive income.  Available-For-Sale AFS financial assets In the case of equity investments classified as an AFS financial asset, objective evidence would include a significant or prolonged decline in the fair value of the investment below its cost. Where there is objective evidence of impairment, the cumulative loss - measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that investment previously recognized in the consolidated statements of comprehensive income - is reclassified from stockholders’ equity to comprehensive income. Impairment losses on equity investments are not reversed through the consolidated statements of comprehensive income; increases in the equity investments’ fair value after impairment are recognized in stockholders’ equity. vii. Derecognition of financial assets and liabilities Financial Assets A financial asset or where applicable, a part of a financial asset or part of a group of similar financial assets is derecognized when: 1 the rights to receive cash flows from the asset have expired, or 2 the Company and Subsidiaries have transferred their rights to receive cash flows from the asset or have assumed an obligation to pay the received cash flows in full without material delay to a third party under a “pass-through” arrangement; and either a the Company and Subsidiaries have transferred substantially all the risks and rewards of the asset, or b the Company and Subsidiaries have neither transferred nor retained substantially all the risks and rewards of the asset, but have transferred control of the asset. Financial Liabilities A financial liability is derecognized when the obligation under the liability is discharged or cancelled or has expired. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a extinguishment of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognized in the consolidated statements of comprehensive income.

x. Adoption of other revised accounting standards

Other than the revised accounting standards previously mentioned above, the Company and Subsidiaries also adopted the following revised accounting standards effective 1 January 2011, which were considered relevant to the consolidated financial statements but did not have significant impact except for the related disclosures:  PSAK 2 Revised 2009, “Statements of Cash Flows”  PSAK 8 Revised 2010, “Events after the Reporting Period”  PSAK 25 Revised 2009, “Accounting Policies, Changes in Accounting Estimates and Errors”  PSAK 57 Revised 2009, “Provisions, Contingent Liabilities and Contingent Assets”.