Income from Operations REVENUES, EXPENSES, AND INCOME 1. Revenues

20 20 Comparison between the year ended on 31 December 2009 and the year ended on 31 December 2008 Operating expenses of the Company increased by Rp.12,548,525 thousand or approximately 50.45 from Rp.24,874,759 thousand in 2008 to Rp.37,423,284 thousand in 2009. This increase originated primarily by the recording of doubtful accounts amounting to Rp.6,699,924 thousand in 2009 and the increase in Salary expenses amounting to Rp.3,338,730 thousand or approximately 23.45 compared to 2008, The increase of salary was caused by the recruitment of senior management and experts. The increase in operating expenses in 2009 remained increasing in accordance with the management strategy to anticipate vessels with higher added value by recruiting human resources experienced in handling such vessels. In addition, to handle its future needs as a public company, the Company had established a corporate division and conducted a migration of the new accounting system. Marketing expenses also increased due to a larger number of contracts which affects the total increase in value for larger tender on bid bonds . This was caused by the increase in the number of types of vessels with higher added value. Comparison between the year ended on 31 December 2008 and the year ended on 31 December 2007 Operating expenses of the Company increased by Rp.5,008,452 thousand or approximately 25.21 from Rp.19,866,307 thousand in 2007 to Rp.24,874,759 thousand in 2008. This increase was primarily due to the increase in Salary expenses amounting to Rp.3,480,627 thousand or approximately 32.26 and professional services amounting to Rp.1,521,421 thousand or approximately 263.96 compared to 2007. Based on management’s vision to prepare the Company for the market opportunities arising from the application of the cabotage principle, the Company had started to invest in 3 sectors, namely human resources, infrastructures including IT, and vessels. In addition, to avail itself of more choices of sources of funding that would support this vision, the Company conducted a restructuring in preparation for going public. The direct impact of this strategy was an increase in Salary and professional expenses mentioned above. Development of Operating Expenses of the Company 2007 – 30 June 2010

5. Income from Operations

in thousands Rupiah Information 31 December For the period of 6 six months ended on 30 June 2007 2008 2009 2010 Income from Operations 83,923,692 108,151,634 93,310,360 61,526,768 The period of 6 six months ended on 30 June 2010 Income from operations of the Company for the period of 6 six months ended on 30 June 2010 amounted to Rp.61,526,768 thousand, or approximately 65.94 of the income from operations for the year ended on 31 December 2009. This was primarily due to the increase in revenues from contracts from PSV vessels. Comparison between the year ended on 31 December 2009 and the year ended on 31 December 2008 Income from operations of the Company decreased by Rp.14,841,274 thousand or approximately 13.72 from Rp.108,151,634 thousand in 2008 to Rp.93,310,360 thousand in 2009. This was because of the increase in operating expenses amounting to Rp.12,548,525 thousand or 50.45 in 2009, most of which was due to the provision for doubtful accounts and the increase in Salary and other expenses. The increase in expenses was caused by the management strategy to improve the Company’s capabilities through investment in management team and infrastructure to prepare the increase in capacity of development to face market opportunities arising from the implementation of the cabotage principle and to prepare for the Public Offering. 20 25 37 21 2007 2008 2009 30 June 2010 Operating Expenses in Millions Rupiah 21 21 Comparison between the year ended on 31 December 2008 and the year ended on 31 December 2007 Income from operations of the Company increased by Rp.24,227,942 thousand or approximately 28.87 from Rp.83,923,692 thousand in 2007 to Rp.108,151,634 thousand in 2008. This was because of the increase in operating expenses of the Company in the amount of Rp.5,008,452 thousand or approximately 25.21 compared to 2007. Although the Company increased operating expenses to implement a strategy to increase the capacity mentioned above, the Company gained benefits from the higher increase in the Gross Profit margin from new vessels with higher added value, resulting in the increase in income from operations.

6. Other Income Charges