CAPITAL STOCK Derivative Instruments and Hedging Activities

PT. TUNAS BARU LAMPUNG Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2009 AND 2008 AND FOR THE NINE MONTHS PERIOD THEN ENDED Continued - 28 - Bank Mandiri The loan facility with Bank Mandiri represent investment loan received by the Company amounting to US 5.964.882. This facility was used to finance the power plant project with total value of investment amounting to US 11.450.000. Interest rate for the investment loans was 9,75 per annum. This facility will mature in the second quarter of 2011. Bank Rakyat Indonesia Persero Tbk On September 7, 2006, the Company obtained investment loan KI facility from BRI amounting to Rp 303.400.000 thousand which consist of KI Plantation amounting to Rp 211.400.000 thousand and KI CPO Mill amounting to Rp 92.000.000 thousand. Included in the KI facilities are interest During Construction IDC amounting to Rp 45.500.000 thousand for KI Plantation and Rp 13.000.000 thousand for KI CPO Mill. The Investment loan is used to finance the 9.500 hectares of palm plantation and 1 unit CPO Mill located in Banyuasin, South Sumatera. This loan facility has a term of 9 years with a grace period of 4,5 years for palm plantation and 5,5 years for palm factory, which will start from the date of the signing of credit agreement. Interest rate per annum is 15 which can be charged at any time following the current market interest rate in BRI. The investment loan is secured with palm plantation project in Banyuasin and similar collaterals for short term loan facility received from BRI note 13 which consist of trade account receivable , inventories, land including palm plantation located in Terbanggi Besar, plant, machineries, and personal guarantees from Widarto and Santoso Winata note 23. The collaterals for trade receivable and inventories represent part of joint collateral paripassu with Bank Mandiri and syndicated loan which is coordinated by Rabobank. The investment loan facility was started to be availed of in 2007. As of September 30, 2009, outstanding loan amounted to Rp 65.425.000 thousand for KI principal and Rp 11.656.195 thousand for KI IDC

17. CAPITAL STOCK

As of September 29, 2008 by virtue of Notarial Deed No. 28 of Mrs. Kartuti Suntana S,S.H. notary public in Jakarta the company have been increased the Company‟s authorized become Rp. 800.000.000 thousand which divided into 6.400.000 thousand shares, with a par value of Rp. 125,- per share, Based on report of PT Adimitra Transferindo, Shares Registrar , the list of Stockholder is as follows: PT. TUNAS BARU LAMPUNG Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2009 AND 2008 AND FOR THE NINE MONTHS PERIOD THEN ENDED Continued - 29 - Based on the Shareholders‟ Extraordinary General Meetings held on June 19, 2008, which was covered by notarial deed No. 14 of Ny Kartuti suntana S,S.H., the shareholders approved the following: Buy Back of the Company‟s share held by the public, which shall not be more than 10 of the total number of existing issued and fully paid shares of the Company or at a maximum of 416.688.549 shares or not exceeding Rp 300.000.000 thousand. The period of the shares buy back shall be for eighteen 18 months starting from June 19, 2008 until December 18, 2009. Relative to the above, as of September 30, 2009 the Company had already executed the share buyback amounting to 70.293.500 shares as mentioned above, at a total cost of Rp 25.538.968 thousand. The said repurchased shares are accounted for and presented as “Treasury Stock” under the “Shareholders‟ Equity” section of the consolidated balance sheets. Depending on the Company‟s future business needs, it is possible for the Company to reissue the repurchased shares through the stock exchange in compliance with the relevant rules and regulations. All of the Company‟s shares are now listed in the Indonesia Stock Exchange previously in the Jakarta and Surabaya Stock Exchange PT. TUNAS BARU LAMPUNG Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2009 AND 2008 AND FOR THE NINE MONTHS PERIOD THEN ENDED Continued - 30 - 18. NET SALES The details on net sales are as follows :

19. COST OF GOODS SOLD