MINING PROPERTIES continued 2009 Liquidation Adaro Finance B.V., MEC Indo Coal B.V. and Arindo Global Netherland B.V.

174 Adaro Energy Annual Report 2009 From Us to Y ou Running Adaro Management Report Owning Adaro Governing Adaro Financial Report Contact Us Corporate Social Responsibility Adaro in Summary www.adaro.com PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 536 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2009 AND 2008 Expressed in million Rupiah, unless otherwise stated

18. SHORT-TERM BANK LOANS continued Syndicated Short-term Loan

On 29 February 2008, Adaro entered into a syndicated loan facility with several banks the “Lenders” which consisted of DBS Bank Ltd and United Overseas Bank Ltd the “WHT Lenders”, and PT ANZ Panin Bank and Standard Chartered Bank Jakarta branch the “WHT Neutral Lenders” whereby DBS Bank Ltd acts as the facility agent. Under this agreement, the Lenders agreed to provide a revolving loan facility amounting to US80 million which expired on 28 February 2009. This facility is charged with interest rates at the London Interbank Offered Rate “LIBOR” plus a certain percentage. On 24 February 2009, this loan was extended until 25 February 2010. In accordance with the terms of the agreement, Adaro is required to maintain certain financial ratios, with which Adaro was in compliance as at 31 December 2009. As at 31 December 2009, the outstanding balance from this loan was US20,000,000 2008: US80,000,000. This loan has the same significant terms and conditions as the long-term Syndicated Loan refer to Note 21a. Based on amended agreement dated 24 February 2009, IBT, Coaltrade and the Company are the guarantors of this facility. In February 2010, this loan has been fully paid by Adaro.

19. ROYALTIES PAYABLE 2009

2008 Government royalties payable, net 738,044 576,500 Since 1 July 1999, Adaro has adopted a sales-based cash royalty method to satisfy the Government’s production entitlement refer to Note 1c. Payments of the Government’s entitlement are based on Adaro’s calculation of the net sales price, which is subject to audit by the Directorate of Mineral and Coal Business Supervision, Ministry of Energy and Mineral Resources “MoEMR”. Part of the settlement of the royalty is offset by Adaro with the VAT input refer to Note 34b.

20. FINANCE LEASE PAYABLES 2009

2008 PT Komatsu Astra Finance 741,987 899,235 PT Caterpillar Finance Indonesia 35,821 52,53 1 VFS International AB 31,563 62,445 Others each below Rp 30,000 2,187 4,250 811,558 1,018,461 Less: Portion due within one year 335,803 334,810 Non-current portion 475,755 683,651 The future minimum lease payments under the finance lease agreements are as follows: 2009 2008 Payable not later than 1 year 361,373 383,386 Payable later than 1 year and not later than 5 years 494,231 734,330 855,604 1,117,716 Less: Future financing charges 44,046 99,255 Present value of minimum finance lease payments 811,558 1,018,461 The significant general terms and conditions of the finance leases are as follows: - the Group is restricted from selling, lending, leasing, or otherwise disposing of or ceasing to exercise direct control over the leased assets; - the Group is restricted from creating or allowing any encumbrance to all or any part of the leased assets; and - all leased assets are pledged as collateral for the underlying finance lease payables.