Disposal of PT Padang Anugerah

Adaro Energy Annual Report 2008 www.adaro.com 149 Contact Us Governing Adaro Financial Report Corporate Social Responsibility PT ADARO ENERGY Tbk Schedule 517 FORMERLY PT PADANG KARUNIA AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2008 AND 2007 Expressed in million Rupiah, unless otherwise stated

3. ACQUISITIONS AND DISPOSALS OF SUBSIDIARIES continued

i. Disposal of PT Anugerah Kasih continued

2007 Net assets disposed of 990 Adjustment to net assets disposed of: - Difference in value from restructuring transactions of entities under common control - at acquisition 4,038 - Difference in value from restructuring transactions of entities under common control - at disposal 4,038 Cash received from disposal of subsidiary 990 Cash and cash equivalents in AK - Net cash inflow from disposal of subsidiary 990

j. Disposal and acquisition of PT Karunia Barito Sejahtera

On 28 February 2007, the Company disposed of all of its interest in PT Karunia Barito Sejahtera “KBS” to BAS and AK for Rp 248. This disposal was accounted for as required under SFAS No. 38 Revised 2004, since the Company, BAS and AK are entities under common control. 2007 Cash and cash equivalents - Amounts due from related parties 250 Net assets 250 Interest disposed of 99 Net assets disposed of 248 Adjustment to net assets disposed of: - Difference in value from restructuring transactions of entities under common control - at acquisition 1,009 - Difference in value from restructuring transactions of entities under common control - at disposal 1,009 Cash received from disposal of subsidiary 248 Cash and cash equivalents in KBS - Net cash inflow from disposal of subsidiary 248 On 30 April 2007, the Company reacquired its 33 interest in KBS for Rp 82. There was no difference between acquisition cost and net assets acquired.

k. Acquisition and disposal of PT Bahtera Alam Tamiang

On 23 February 2007, the Company acquired an additional 0.90 interest in PT Bahtera Alam Tamiang “BAT” for Rp 9 from BAS. The difference between the acquisition cost and net assets acquired was accounted for as a difference in value from restructuring transaction of entities under common control, as required under SFAS No. 38 Revised 2004, since the Company and BAS are entities under common control. 2007 Purchase consideration through cash payment 9 Net liabilities acquired 75 Difference in value from restructuring transactions of entities under common control 84 On 26 February 2007, BAT increased its issued and paid in capital through the issuance of 170,067 new shares with a par value of Rp 1,000,000 full amount per share. The Company acquired 100 of the shares issued, and the Company’s interest in BAT increased from 99.90 to 99.99. Details of the net assets acquired and goodwill are as follows: 2007 Purchase consideration through cash payment 170,067 Net assets acquired 170,058 Goodwill 9