Deferred Tax Assets Management Use of Estimates, Judgments and Assumptions

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 - 58 - According to the regulation of Bank Indonesia, each bank in Indonesia is required to maintain a minimum liquidity reserve of a certain percentage of third party funds both in Rupiah and foreign currency. As of December 31, 2012 and 2011 and January 1, 2011December 31, 2010 the balance of primary minimum liquidity reserves of BS, a subsidiary, in Rupiah, amounted to Rp 1,105,935, Rp 922,150 and Rp 672,744, respectively, while the minimum liquidity reserves in foreign currency amounted to Rp 333,708, Rp 282,698 and Rp 30,694, respectively. As of December 31, 2012 and 2011 and January 1, 2011December 31, 2010, secondary minimum liquidity reserves of BS, in Rupiah, amounted to Rp 284,274, Rp 278,620 and Rp 207,559, respectively. The minimum liquidity reserves as of December 31, 2012 and 2011 and January 1, 2011December 31, 2010 were determined in accordance with Bank Indonesia Regulation. The interest rates per annum on cash in banks and time deposits are as follows: January 1, 2011 December 31, December 31, December 31, 2012 2011 2010 Time deposits Rupiah 3.00 -11.00 5.00 -12.00 4.48 - 10.00 Foreign currency 0.15 - 2.50 0.16 - 3.00 0.15 - 1.50 The changes in allowance for impairment losses on cash and cash equivalents are as follows: January 1, 2011 December 31, December 31, December 31, 2012 2011 2010 Balance at the beginning of the year - - 886 Adjustment resulting from adoption of PSAK No. 55 Note 63 - - 886 Balance at the end of the year - - - As of December 31, 2012 and 2011 and January 1, 2011December 31, 2010, no allowance for impairment losses was provided on cash and cash equivalents as management believes that cash and cash equivalents are collectible.

5. Short-term Investments

January 1, 2011 December 31, December 31, December 31, 2012 2011 2010 Time deposits 635,402 17,341 33,543 Placements with Bank Indonesia and other banks - net 553,334 1,909,021 877,462 Securities - net 17,033,292 13,887,173 7,195,458 Net 18,222,028 15,813,535 8,106,463 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 - 59 -

a. Time deposits

January 1, 2011 December 31, December 31, December 31, 2012 2011 2010 Third parties Rupiah Banks PT Bank Bukopin Tbk 300,000 - - PT Bank Mutiara Tbk 300,000 - - PT Bank Permata Tbk 22,000 - - PT Bank Internasional Indonesia Tbk - Sharia Division 5,000 - - PT Bank Mandiri Persero Tbk 4,187 - - PT Bank Internasional Indonesia Tbk - 7,968 27,492 PT ICB Bumiputera Tbk - 5,000 - PT Bank BNI Syariah - - 1,200 Others below Rp 1,000 each - 350 1,050 Total 631,187 13,318 29,742 PT Kliring Berjangka Indonesia 3,244 3,096 2,925 PT Kliring Penjaminan Efek Indonesia 971 927 876 Total 635,402 17,341 33,543 Time deposits are categorized as loan and receivables. The interest rates per annum on time deposits in Rupiah are 6.22 to 8.75 in 2012, 6.75 to 8.75 in 2011 and 5.09 – 8.5 in 2010. Short-term Investments in the form of time deposits included time deposits with maturities of more than three 3 months and guarantee deposits, in compliance with the regulation of the Minister of Finance of the Republic of Indonesia under the name of the Minister of Finance on behalf of the subsidiary and time deposits of SMS and SF, subsidiaries, placed with PT Kliring Penjaminan Efek Indonesia and PT Kliring Berjangka Indonesia, respectively.

b. Placements with Bank Indonesia and other banks

January 1, 2011 December 31, December 31, December 31, 2012 2011 2010 Bank Indonesia 165,482 1,347,412 171,273 Other banks 387,852 561,609 706,189 Total 553,334 1,909,021 877,462 Allowance for impairment losses - - - Net 553,334 1,909,021 877,462