The Key Sources of Estimation Uncertainty

PT Provident Agro Tbk • Laporan Tahunan 2016 Annual Report 201 These Consolidated Financial Statements are Originally Issued in Indonesian Language Ekshibit E43 Exhibit E43 PT PROVIDENT AGRO Tbk DAN ENTITAS ANAKNYA CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN UNTUK TAHUN YANG BERAKHIR PADA 31 DESEMBER 2016 Disajikan dalam ribuan Rupiah, kecuali dinyatakan lain PT PROVIDENT AGRO Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016 Expressed in thousands Rupiah, unless otherwise stated 5. DEPOSITO BERJANGKA 5. TIME DEPOSIT 2 0 1 6 2 0 1 5 Deposito Time deposit Pihak ketiga Third party PT Bank Rakyat Indonesia Persero Tbk 550.000.000 - PT Bank Rakyat Indonesia Persero Tbk J u m l a h 550.000.000 - T o t a l Deposito berjangka dengan jangka waktu 6 enam bulan dan tingkat suku bunga 7 per tahun 2015: nihil. Time deposit with maturities of 6 six months and interest rate 7 per annum 2015: nil. 6. PIUTANG USAHA 6. TRADE RECEIVABLES 2 0 1 6 2 0 1 5 Pihak ketiga Third parties PT Wilmar Nabati Indonesia 4.078.404 1.838.240 PT Wilmar Nabati Indonesia PT Bengkulu Sawit Lestari 1.095.288 - PT Bengkulu Sawit Lestari Lain-lain saldo dibawah Rp 1.000.000 713.005 1.718.268 Others balance below Rp 1,000,000 J u m l a h 5.886.697 3.556.508 T o t a l Manajemen Perusahaan dan entitas anaknya berpendapat bahwa tidak terdapat kerugian penurunan nilai atas tidak tertagihnya piutang usaha potensial tersebut. Management of the Company and its subsidiaries believe that there are no impairment losses from potential non collectibility of the trade receivables. Piutang usaha dijadikan sebagai jaminan atas fasilitas pinjaman ke PT Bank DBS Indonesia, PT Bank Mandiri Persero Tbk dan PT Bank Permata Tbk yang diterima entitas anak Catatan 17. Trade receivables are used as collateral to PT Bank DBS Indonesia, PT Bank Mandiri Persero Tbk and PT Bank Permata Tbk for loans received by subsidiaries Note 17. Analisa umur piutang usaha sejak tanggal faktur adalah sebagai berikut: The aging analysis of trade receivables based on invoice date are as follows: 2 0 1 6 2 0 1 5 Belum jatuh tempo 5.886.697 3.450.928 Current Lewat jatuh tempo Overdue 1 - 30 hari - 105.580 1 - 30 days J u m l a h 5.886.697 3.556.508 T o t a l 7. PERSEDIAAN

7. INVENTORIES 2 0 1 6

2 0 1 5 Bahan pembantu 20.989.194 45.422.916 Consumables Minyak kelapa sawit 12.409.145 20.483.147 Crude palm oil Inti sawit 2.503.723 7.405.200 Palm kernel J u m l a h 35.902.062 73.311.263 T o t a l PT Provident Agro Tbk • Laporan Tahunan 2016 Annual Report 202 These Consolidated Financial Statements are Originally Issued in Indonesian Language Ekshibit E44 Exhibit E44 PT PROVIDENT AGRO Tbk DAN ENTITAS ANAKNYA CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN UNTUK TAHUN YANG BERAKHIR PADA 31 DESEMBER 2016 Disajikan dalam ribuan Rupiah, kecuali dinyatakan lain PT PROVIDENT AGRO Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016 Expressed in thousands Rupiah, unless otherwise stated 7. PERSEDIAAN Lanjutan 7. INVENTORIES Continued Berdasarkan hasil pengkajian ulang keadaan fisik persediaan untuk tahun yang berakhir pada tanggal 31 Desember 2016 dan 2015, manajemen Perusahaan dan entitas anaknya berpendapat bahwa nilai tercatat persediaan dapat terpulihkan seluruhnya sehingga tidak diperlukan penyisihan untuk persediaan usang. Based on a review of the physical inventories for the years ended 31 December 2016 and 2015, the Company and its subsidiaries’ management believe that carrying value of inventory can be recovered entirely so it is not necessary to make any allowance for inventory obsolescence. Persediaan telah diasuransikan dengan nilai pertanggungan sebesar Rp 48.570.000 2015: Rp 59.770.000. Manajemen berpendapat bahwa nilai pertanggungan tersebut cukup untuk menutupi kemungkinan kerugian yang timbul bagi Perusahaan dan entitas anaknya. Inventories were insured with amount sum insured Rp 48,570,000 2015: Rp 59,770,000. Management believes that the insurance coverage is adequate to cover possible losses to the Company and its subsidiaries. Persediaan dijadikan sebagai jaminan atas utang bank jangka panjang dari PT Bank DBS Indonesia, PT Bank Mandiri Persero Tbk dan PT Bank Permata Tbk Catatan 17. Inventories are provided as collateral of long-term bank loans from PT Bank DBS Indonesia, PT Bank Mandiri Persero Tbk and PT Bank Permata Tbk Note 17. 8. UANG MUKA DAN BEBAN DIBAYAR DI MUKA 8. ADVANCE AND PREPAID EXPENSES 2 0 1 6 2 0 1 5 Pihak ketiga Third parties Asuransi 1.475.627 2.214.833 Insurance Supplierkontraktor 1.374.673 7.638.807 Suppliercontractor Sewa 457.092 551.583 Rent Ganti rugi lahan 168.148 1.238.204 Land compensation Perjalanan dinas 98.408 222.128 Travelling expense Lain-lain 248.174 966.628 Others J u m l a h 3.822.122 12.832.183 T o t a l Uang muka kepada supplierkontraktor terutama untuk bibitan, peralatan, mesin dan pupuk. Advances to suppliercontractor were mainly provided for nursery, equipments, machines and fertilizers. 9. PIUTANG PLASMA 9. PLASMA RECEIVABLES 2 0 1 6 2 0 1 5 Pihak ketiga Third parties Plasma 48.216.975 165.262.287 Plasma Berdasarkan kesepakatan antara: i TPAI, entitas anak, dengan: - KUD Harapan Maju Bersama yang berlokasi di Desa Upang Jaya, Kecamatan Makarti Jaya, Kabupaten Banyuasin, Propinsi Sumatera Selatan, - KUD Kenten Mandiri yang berlokasi di Kenten Laut, Kecamatan Talang Kelapa, Kabupaten Banyuasin, Propinsi Sumatera Selatan; Based on agreement between: i TPAI, a subsidiary, with: - KUD Harapan Maju Bersama that located in the Village of Upang Jaya, District of Makarti Jaya, Regency of Banyuasin, South Sumatera Province, - KUD Kenten Mandiri that located in Kenten Laut, District of Talang Kelapa, Regency of Banyuasin, South Sumatera Province;