Foreign exchange rate risk continued

PT KRAKATAU STEEL PERSERo Tbk. 2011 Annual Report The original consolidated financial statements included herein are in the Indonesian language. PT KRAKATAU STEEL PERSERO Tbk DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN Pada Tanggal 31 Desember 2011 dan 2010 dan 1 Januari 201031 Desember 2009 dan Untuk Tahun yang Berakhir Pada Tanggal 31 Desember 2011 dan 2010 Disajikan dalam jutaan Rupiah, Kecuali Dinyatakan Lain PT KRAKATAU STEEL PERSERO Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2011 and 2010 and January 1, 2010December 31, 2009 and for the Years Ended December 31, 2011 and 2010 Expressed in millions of Rupiah, Unless Otherwise Stated 147

33. KEBIJAKAN DAN

TUJUAN MANAJEMEN RISIKO KEUANGAN lanjutan 33. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES continued MANAJEMEN RISIKO lanjutan RISK MANAGEMENT continued b. Risiko mata uang lanjutan

b. Foreign exchange rate risk continued

Apabila penurunan nilai tukar mata uang Rupiah berlanjut melemah dari nilai tukar yang berlaku pada tanggal 31 Desember 2011, liabilitas moneter dalam mata uang asing akan meningkat dalam mata uang Rupiah. Namun, peningkatan liabilitas ini akan dihapus oleh peningkatan nilai aset moneter dalam mata uang asing. Pada tanggal 31 Desember 2011, sebanyak 33 dari utang Kelompok Usaha dalam mata uang Dolar A.S. dilindungi dari risiko nilai tukar mata uang asing dengan menandatangani beberapa kontrak swap valuta asing. To the extent the Indonesian Rupiah depreciated further from exchange rates in effect at December 31, 2011, monetary liabilities denominated in foreign currencies would increase in Indonesian Rupiah terms. However, the increases in these obligations would be offset by increases in the values of foreign currency-denominated monetary assets. As of December 31, 2011, 33 of the Group’s U.S. dollar-denominated debts were hedged from exchange rate risk by entering into several foreign exchange swap contracts. Aset dan liabilitas moneter Kelompok Usaha dalam mata uang asing pada tanggal 31 Desember 2011 disajikan pada Catatan 36. Monetary assets and liabilities of the Group denominated in foreign currencies as of December 31, 2011 are presented in Note 36. Analisis sensitivitas untuk risiko mata uang asing Pada tanggal 31 Desember 2011, jika nilai tukar Rupiah terhadap mata uang asing menurunmeningkat sebanyak 10 dengan semua variabel konstan, laba sebelum pajak untuk tahun yang berakhir pada tanggal tersebut lebih rendahtinggi sebesar Rp283.878, terutama sebagai akibat kerugiankeuntungan translasi kas dan setara kas, piutang usaha, utang usaha dan pinjaman dalam mata uang asing. Sensitivity analysis for foreign currency risk As of December 31, 2011, had the exchange rates of the Rupiah against foreign currencies depreciatedappreciated by 10 with all other variables held constant, income before tax for the year then ended would have been Rp283,878 lowerhigher, mainly as a result of foreign exchange lossesgains on the translation of cash and cash equivalents, trade receivables, trade payables and loans denominated in foreign currencies. c. Risiko kredit c. Credit risk