Risk of possibility of no dividend payment

availability of cash and the Company’s financial performance in general in the future, which certainly depends also on successful implementation of the Companys growth strategy, business competition, rules and legislation, general economic conditions, demand and supply prices of the products of the Company and its subsidiaries, and other specific factors related to the coal industry or other projects undertaken by the Company. In addition, the Company and its subsidiaries have restrictions as set in their loan agreements in terms of distribution or the amount of dividends that can create a new financing agreement in the future which may provide additional restrictions on the ability of the Company and its subsidiaries to distribute dividends and may cause expenses or liabilities that may reduce cash availability for dividend distribution. Although the Company is the parent company, but its ability to distribute dividends still depends on the ability of subsidiaries in distributing dividends. Determination of the amount of dividends, if any, which will be paid to the Company from its subsidiaries depends on the financial condition, results of operations, cash flow and business prospects in the future. 6. Risk of net asset value of shares offered in the Public Offering is lower than the Offering Price Currently, the offering price per share of circulated shares issued to the Company’s shareholders is higher than the net asset value per share. Therefore, the buyers of shares offered will shortly experience a substantial dilution and the current shareholders of the Company will experience material increase from the net asset value per share of each share they own.

7. Risk of equity securities

The shares being offered are the Company’s equity securities. In terms of fulfillment of the rights on the Companys available assets and income, the equity securities are at the lowest rank compared with the rights fulfillment of all other obligations and non-equity payables of the Company. In addition, the rights of the Company on assets of subsidiaries in the event of liquidation or reorganization of each subsidiary can only be met after fulfilling obligations to all creditors of the subsidiary. 8. Risk of changes on the use of the proceeds from this public offering for different purposes from those stated in this prospectus and the possibility that the Company could not use the proceeds from the Public Offering effectively The Company plans to use the proceeds from this Public Offering in accordance with the procedures described in the chapter regarding the plan of use of funds. The management needs to make a separate consideration to determine the exact amount and timing of utilization of the net proceeds of this Public Offering. The Company may use the proceeds of this Public Offering in a different way from that stated in this Prospectus, which may not correspond with the wishes of the shareholders such as using the proceeds from this Public Offering in a way that may not result in an increase of the Company’s operations or value of the shares. Failure to use the proceeds of this Public Offering effectively might results in financial loss that could cause a decrease shares’ price and delay in the development of various business activities of the Company. 9. Risk that the buyer may be subject to restrictions on the rights of minority shareholders Under the current Indonesia Law, minority shareholders cannot protect their interests within certain same limits as in other countries. Under the Indonesia law, the obligations of the majority shareholder, the board of commissioners and directors with respect to minority shareholders, are more limited than those in other countries. The principles of UUPT related to the validity of the corporate procedures and fiduciary duties of the Companys management, board of commissioners and directors and