Subsidiaries’ Investments in shares of stock

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 - 94 - January 1, December 31, 2011 Additions Deductions Reclassifications 2011 Accumulated depreciation Direct acquisitions Buildings 80,015 23,871 209 105 103,782 Office equipment 151,033 59,986 8,930 - 202,089 Motor vehicles 63,465 23,581 5,167 - 81,879 Furniture and fixtures 13,857 4,080 1,024 - 16,913 Machineries and equipment 17,135 3,793 337 - 20,591 Total 325,505 115,311 15,667 105 425,254 Net Book Value 842,954 1,253,721 Changes during 2011 January 1, 201 January 1, December 31, 2010 Additions Deductions Reclassifications 2010 At cost Direct acquisitions Land 154,398 7,498 477 - 161,419 Buildings 390,908 63,968 747 200 454,329 Office equipment 288,185 56,362 3,051 - 341,496 Motor vehicles 94,785 42,949 4,674 - 133,060 Furniture and fixtures 22,173 5,391 301 - 27,263 Machineries and equipment 20,372 2,322 - - 22,694 Construction in progress 11,975 16,423 - 200 28,198 Total 982,796 194,913 9,250 - 1,168,459 Accumulated depreciation Direct acquisitions Buildings 59,140 21,105 230 - 80,015 Office equipment 114,547 39,460 2,974 - 151,033 Motor vehicles 49,034 17,836 3,405 - 63,465 Furniture and fixtures 10,765 3,380 288 - 13,857 Machineries and equipment 13,782 3,353 - - 17,135 Total 247,268 85,134 6,897 - 325,505 Net Book Value 735,528 842,954 Changes during 2010 Depreciation charged to operations for the years ended December 31, 2012 and 2011 amounted to Rp 168,807 and Rp 115,311, respectively. Depreciation which were included in other expenses - direct cost of service center for the years ended December 31, 2012 and 2011 amounted to Rp 1,807 and Rp 1,186, respectively Note 50. As of December 31, 2012, construction in progress represent building construction in Jakarta, Surabaya, Belitung, Pekalongan, Semarang, Kudus, Jember and Magelang with contract value of Rp 64,100 and USD 80,000,000 and estimated date of completion is in 2013-2014, with contractual commitment of Rp 22,035 and USD 53,146,300. As of December 31, 2012, the fair value of the Group’ land and building amounted to Rp 1,674,123. 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 - 95 - Reclassification of property and equipment in 2011 includes reclassification of investment property - land and building to property and equipment, with acquisition cost amounting to Rp 22,806 and accumulated depreciation amounting to Rp 105 Note 18. Deductions in property and equipment pertain to the sale of certain property and equipment with details as follows: December 31, December 31, 2012 2011 Selling price 7,714 4,350 Net book value 6,032 3,000 Gain on sale of property and equipment Note 45 1,682 1,350 Property and equipment are insured with ASM, a subsidiary, and other insurance companies amounting to Rp 1,642,446 and US 2,900,000 as of December 31, 2012; Rp 1,226,697 and US 4,380,840 as of December 31, 2011; and Rp 755,084 and US 4,695,747 as of January 1, 2011December 31, 2010. Management believes that the insurance coverages are adequate to cover any possible losses that might arise from the assets insured. Management believes that there is no impairment in value of the aforementioned assets as of December 31, 2012 and 2011 and January 1, 2011December 31, 2010.

20. Foreclosed Properties

Foreclosed properties were obtained by SMF and BS, subsidiaries, from settlement of their receivables from and loans to customers. January 1, 2011 December 31, December 31, December 31, 2012 2011 2010 Land, houses, and apartments 76,944 74,569 68,469 Vehicles 18,369 15,422 5,929 Heavy equipment 371 371 1,524 Total 95,684 90,362 75,922 Allowance for impairment losses 1,664 442 4,683 Net 94,020 89,920 71,239 These foreclosed properties are not insured. At this point in time, SMF and BS are still in the process of selling the foreclosed properties, i.e. by cooperating with property agents to sell the land, houses and apartment units. As of December 31, 2012 and 2011 and January 1, 2011December 31, 2010, management believes that the allowance for impairment losses is adequate to cover the possible losses which might arise from the decline in values of the foreclosed properties.