Non-resident Tax Payer TAXATION

established or domiciled in Indonesia, that derives or earns income from Indonesia other than from conducting or carrying out business.

2. Resident Tax Payer

a. an individual residing in Indonesia, an individual who is present in Indonesia for more than 183 one hundred and eighty three days within 12 twelve month period, or an individual who is present in Indonesia in a tax year and intends to reside in Indonesia; b. a body which is established and domiciled in Indonesia,

3. Indonesian Shareholder

is Indonesia resident or local body who owns the stocks. DIVIDEND DISTRUBUTED TO NON-RESIDENT SHAREHOLDERS Dividends on shares declared by the Company from retained earnings and distributed to non-resident shareholders is subjected to an income tax withholding in Indonesia, at current rate of 20 twenty percent of the amount distributed in the form of cash dividends or of the division value of the shares held by shareholders normally calculated based on the par value of the share for distribution in the form of share dividends. In the case that the provisions of Agreement of Double Taxation Avoidance “Tax Treaty” apply, can be charged with a lower rate if the dividend recipient is the actual recipient of such dividend and can give original residence certificate issued by the authorities in the origin country signed the Tax Treaty with Indonesia. To date, Indonesia has established cooperation and engages in Tax Treaty with more than 50 countries including Australia, Belgium, Canada, France, Germany, the Netherlands, Singapore, Sweden, Switzerland, England and the United States of America. DIVIDEND DISTRIBUTED TO INDONESIAN SHAREHOLDERS Dividend declared by the Company and distributed to Indonesian shareholders is subjected to the income tax pursuant to article 23 of the Income Tax Law No. 36 Year 2008 at a rate of 15 fifteen percent for corporate taxpayer and the final tax income and at the rate of 10 for individual taxpayer. Pursuant to Article 4 3 of Law No. 7 year 1983 regarding Income Tax as amended several times and latest amended by Income Tax Law No. 36 Year 2008, it has been stipulated that what be excluded from the tax object is: “dividends or profits of share derived or earned by limited liability companies as resident taxpayers, cooperatives, state owned enterprises, or regionally owned enterprises, from investments in business entities established and domiciled in Indonesia with the following requirements: