MANAGEMENT’S USE OF JUDGMENTS, ESTIMATES AND ASSUMPTIONS continued Judgments continued

PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2013 AND DECEMBER 31, 2012, 2011 AND 2010 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2013 AND 2012 UNAUDITED AND YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010 Expressed in thousands of rupiah, unless otherwise stated 69

13. INVESTMENT PROPERTIES continued

2012 continued Balance as of Balance as of December 31, 2011 Additions Deductions Reclassifications December 31, 2012 2012 Movements continued Accumulated depreciation Buildings and infrastructures 287,828,427 42,719,929 446,264 3,978 330,106,070 Hotel facilities 17,110,682 10,782,253 - - 27,892,935 Machinery and heavy equipment 103,200,932 30,609,749 4,540 119,485 133,925,626 Furniture and office equipment 70,366 174,121 - - 244,487 Total accumulated depreciation 408,210,407 84,286,052 450,804 123,463 492,169,118 Net book value 1,925,426,080 2,549,918,696 2011 Balance as of Balance as of December 31, 2010 Additions Deductions Reclassifications December 31, 2011 2011 Movements Cost Land 411,027,113 7,947,010 - 1,246,285 420,220,408 Buildings and infrastructures 990,100,753 427,078,284 2,346,591 137,001,071 1,551,833,517 Hotel facilities - 13,857,998 - 40,426,603 54,284,601 Machinery and heavy equipment 186,009,967 25,164,298 2,082,554 64,737,812 273,829,523 Furniture and office equipment - - - 864,266 864,266 1,587,137,833 474,047,590 4,429,145 244,276,037 2,301,032,315 Construction in progress - 35,414,580 389,782 2,420,626 32,604,172 Total cost 1,587,137,833 509,462,170 4,818,927 241,855,411 2,333,636,487 Accumulated depreciation Buildings and infrastructures 235,346,963 28,451,092 157,866 24,188,238 287,828,427 Hotel facilities - 11,122,715 - 5,987,967 17,110,682 Machinery and heavy equipment 73,401,673 25,000,870 553,191 5,351,580 103,200,932 Furniture and office equipment - - - 70,366 70,366 Total accumulated depreciation 308,748,636 64,574,677 711,057 35,598,151 408,210,407 Net book value 1,278,389,197 1,925,426,080 consists of sales and disposals PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2013 AND DECEMBER 31, 2012, 2011 AND 2010 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2013 AND 2012 UNAUDITED AND YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010 Expressed in thousands of rupiah, unless otherwise stated 70

13. INVESTMENT PROPERTIES continued

2010 Balance as of Balance as of December 31, 2009 Additions Deductions Reclassifications December 31, 2010 2010 Movements Cost Land 410,490,356 536,757 - - 411,027,113 Buildings and infrastructures 920,257,717 12,458,415 - 57,384,621 990,100,753 Hotel facilities - - - - - Machinery and heavy equipment 171,558,023 5,817,886 - 8,634,058 186,009,967 Total cost 1,502,306,096 18,813,058 - 66,018,679 1,587,137,833 Accumulated depreciation Buildings and infrastructures 212,510,276 23,060,196 - 223,509 235,346,963 Hotel facilities - - - - - Machinery and heavy equipment 55,772,919 17,628,754 - - 73,401,673 Total accumulated depreciation 268,283,195 40,688,950 - 223,509 308,748,636 Net book value 1,234,022,901 1,278,389,197 Depreciation for the six-month period ended June 30, 2013 and 2012 and years ended December 31, 2012, 2011 and 2010 was charged to the following accounts: Six-Month Periods Ended June 30, Years Ended December 31, 2012 2013 unaudited 2012 2011 2010 Cost of sales and direct costs 41,788,080 36,285,895 81,356,719 63,367,254 40,688,950 General and administrative expenses Note 32 672,574 5,113,483 2,929,333 1,207,423 - Total depreciation 42,460,654 41,399,378 84,286,052 64,574,677 40,688,950 The details of sales of investment properties are as follows: Year Ended December 31, 2011 _____ Cost 1,569,444 Accumulated depreciation 629,779 Net book value 939,665 Selling price 36,015 Loss on sales of investment properties - net 903,650 As of June 30, 2013 and December 31, 2012 and 2011, the Company disposed certain of its investment properties with net book value of Rp317,254, Rp42,634 and Rp3,168,205, respectively. PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2013 AND DECEMBER 31, 2012, 2011 AND 2010 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2013 AND 2012 UNAUDITED AND YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010 Expressed in thousands of rupiah, unless otherwise stated 71

13. INVESTMENT PROPERTIES continued

Reclassifications of cost represent reclassifications from construction in progress to the appropriate completed investment properties amounting to Rp526,183,067, Rp6,213,099 and Rp7,975,685 as of June 30, 2013 and December 31, 2012 and 2011, respectively. As of June 30, 2013 and December 31, 2012, the reclassification to investment properties from inventories with net book value amounting to Rp4,494,968 and Rp22,258,286, respectively, was due to the change in management’s intention in using the related assets Note 8. In 2012, the reclassification to investment properties from undeveloped land with acquisition cost amounting to Rp3,701,938 was due to the change in management’s intention in using the related assets Note 10. As of June 30, 2013 and December 31, 2011, the reclassification of investment properties with net book value amounting to Rp20,023,542 and Rp151,341, respectively, to fixed assets was due to the change in management’s intention in using the related assets Note 12. As of June 30, 2013 and December 31, 2011, the reclassification of investment properties with net book value amounting to Rp141,099,458 and Rp3,795,859, respectively, to inventories was due to the change in management’s intention in using the related assets Note 8. The details of construction in progress as of June 30, 2013 and December 31, 2012, 2011 and 2010 are as follows: 2013 2012 Percentage of Percentage of Project Amount completion Amount completion Scientia Business Park 56,929,628 90.00 5,712,757 60.00 Summarecon Digital Centre 51,199,194 31.24 8,759,657 0.00 Harris Hotel Summarecon Bekasi 46,644,283 35.62 9,360,955 2.08 Movenpick Resort Spa, Jimbaran, Bali 21,625,576 2.89 14,451,774 2.89 The Springs Club 21,594,636 28.00 8,018,555 15.00 Pop Hotel Kelapa Gading 18,152,342 14.54 2,539,969 1.10 Genset Mall Kelapa Gading 3,644,190 81,79 - - Plaza Summarecon Bekasi 2,136,121 25.95 - - Summarecon Mal Bekasi - - 328,543,795 55.00 Sinpasa Commercial Bekasi - - 17,892,501 99.70 Summarecon Mal Serpong - - 11,369,533 91.96 Gas Station Bekasi - - 6,010,881 93.81 Gas Station Kelapa Gading - - 4,535,636 63.18 Pasar Sinpasa Bekasi - - 2,222,042 65.31 Mal Kelapa Gading - - 2,150,316 70.00 Others 6,931,230 - 7,223,819 - Total construction in progress 228,857,200 428,792,190 2011 2010 Percentage of Percentage of Project Amount completion Amount completion Summarecon Mal Bekasi 16,413,020 3.00 - - Chiller Harris Hotel Kelapa Gading 5,578,651 90.00 - - The Springs Club 2,849,076 5.00 - - Others 7,763,425 - - Total construction in progress 32,604,172 - PT SUMMARECON AGUNG Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2013 AND DECEMBER 31, 2012, 2011 AND 2010 AND FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2013 AND 2012 UNAUDITED AND YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010 Expressed in thousands of rupiah, unless otherwise stated 72

13. INVESTMENT PROPERTIES continued

Below are the estimated completion dates of the construction in progress as of June 30, 2013: Estimated Completion Dates Scientia Business Park March 2014 Summarecon Digital Centre March 2014 Harris Hotel Summarecon Bekasi September 2014 Movenpick Resort Spa, Jimbaran, Bali March 2015 The Springs Club March 2014 Pop Hotel Kelapa Gading August 2014 Genset Mal Kelapa Gading August - September 2014 Plaza Summarecon Bekasi September 2014 The percentages of completion of the construction in progress as of June 30, 2013 and December 31, 2012, 2011 and 2010 are based on the actual expenditures incurred compared to the total budgeted project cost. For the six-month period ended June 30, 2013 and years ended December 31, 2012 and 2011, interest capitalized to investment properties amounted to Rp4,513,108, Rp732,292 and Rp8,515,745, respectively. As of June 30, 2013, investment properties, except land with net book value of Rp1,460,770,863, are covered by insurance against fire, flood and other risks all-risks under blanket policies with several companies, including PT KSK Insurance Indonesia, PT Asuransi Jasa Tania, PT Lippo General Insurance, PT Meritz Korindo Hanjin Insurance, PT Reguard General Insurance, PT Zurich Insurance Indonesia, PT Asuransi Himalaya Pelindung, PT Asuransi Central Asia, PT Asuransi Allianz Utama Indonesia, PT Asuransi Adira Dinamika, PT China Taiping Insurance Indonesia, PT Asuransi Rama Satria Wibawa, PT Kurnia Insurance Indonesia, PT Asuransi Umum Mega, PT Asuransi Indrapura, PT Tugu Kresna Pratama, PT Asuransi AXA Indonesia, PT Asuransi MSIG Indonesia and PT ACE INA Insurance, all third parties, for US4,797,058,950 and Rp548,497,775. As of June 30, 2013, the Company and Subsidiaries also covered their investment properties by insurance against terrorism and sabotage for US6,821,806,000 and Rp589,700,000. In addition, the Company and Subsidiaries also obtained insurance against business interruption amounting to Rp693,973,000 as of June 30, 2013. The Company and Subsidiaries’ management is of the opinion that the above coverages are adequate to cover possible losses arising from such risks. As of June 30, 2013 and December 31, 2012, 2011 and 2010, investment properties with net book value of Rp1,750,306,009, Rp1,519,485,639, Rp1,330,421,293 and Rp951,467,022, respectively, are pledged as collateral for the loans from banks and financing institutions and obligations under finance lease Notes 15 and 16. The fair value of the investment properties as of June 30, 2013 and December 31, 2012 and 2011 amounted to Rp6,507,712,630, Rp6,160,587,224 and Rp5,015,178,061, respectively, which was determined partly by independent appraisers KJPP Hendra Gunawan and Partners based on its reports dated March 30, 2012 for June 30, 2013 and December 31, 2012, and May 13, 2011 for December 31, 2011, and partly based on the Tax Offices sales value of tax object NJOP for each year.