DBS Bank Ltd syndicated loan

Adaro Energy Annual Report 2008 www.adaro.com 175 Contact Us Governing Adaro Financial Report Corporate Social Responsibility PT ADARO ENERGY Tbk Schedule 543 FORMERLY PT PADANG KARUNIA AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2008 AND 2007 Expressed in million Rupiah, unless otherwise stated

23. LONG-TERM BANK LOANS continued b.

Senior Credit Facility syndicated loan continued This loan is collateralised by: - all trade receivables owned by SIS; - all equipments, machinery, vehicles, and other moveable goods owned by SIS amounting to US150 million; - insurance claim on all equipments, machinery, vehicle and other moveable goods owned by SIS; - all Principal Agreements owned by SIS; - land and buildings owned by SMP; and - corporate guarantee from the Company.

c. PT Bank Mandiri Persero Tbk

As at 31 December 2007, the outstanding balance was US45,000,000. This loan bears interest at 7. 85. In August 2008, the outstanding loan was fully paid through refinancing using the Senior Credit Facility refer to Note 23b.

d. PT Bank NISP Tbk and Overseas-Chinese Banking Corporation Ltd syndicated loan

As at 31 December 2007, the outstanding balances of Facility A and Facility B were US27,996,500 and US10,000,000, respectively. These loans bear interest at SIBOR plus a certain percentage. In August 2008, these outstanding loans were fully paid through refinancing from Mandiri, which subsequently was fully paid through refinancing using the Senior Credit Facility refer to Note 23b.

e. PT Bank CIMB Niaga Tbk

PT Saptaindra Sejati As at 31 December 2007, the outstanding balance of all credit facilities from Niaga was US16,373,480. These credit facilities bear fixed interest at a rate of 7.25. In August 2008, all outstanding loan facilities from Niaga were fully paid through refinancing using the Senior Credit Facility refer to Note 23b. PT Satya Mandiri Persada As at 31 December 2007, the outstanding balance of this credit facility was US1,065,012. This loan bears fixed interest at 7.75 which was revised on 15 May 2008 to 7.25. In August 2008, the outstanding facility was fully paid by SMP. Car Loan Facility This loan is collateralised by the vehicles purchased using the loan. As at 31 December 2008, the outstanding balance of the car loan facility was Rp 25 2007: Rp 167.

f. PT Bank Permata Tbk

As at 31 December 2007, the outstanding balance of all credit facilities from Permata was US7,615,020. These credit facilities bear fixed interest at 7.25 which was revised in July 2008 to 7.8. In August 2008, all outstanding loan facilities from Permata were fully paid through refinancing using the Senior Credit Facility refer to Note 23b.

g. PT Bank Bukopin Tbk

As at 31 December 2007, the outstanding balance of all credit facilities from Bukopin was US6,105,399. These credit facilities bear fixed interest at 8.25 which was revised in February 2008 to 7.25. In August 2008, all outstanding facilities from Bukopin were fully paid through refinancing using the Senior Credit Facility refer to Note 23b.

h. PT Bank Ekspor Indonesia Persero

As at 31 December 2007, the outstanding balance was US2,916,667. This credit facility bea rs fixed interest at 8.1. In August 2008, the outstanding facility was fully paid through refinancing using the Senior Credit Facility refer to Note 23b. 176 Adaro Energy Annual Report 2008 www.adaro.com Adaro in Summary From Us to You Running Adaro Management Report Owning Adaro PT ADARO ENERGY Tbk Schedule 544 FORMERLY PT PADANG KARUNIA AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2008 AND 2007 Expressed in million Rupiah, unless otherwise stated

24. OTHER LONG-TERM LOANS - THIRD PARTIES 2008

2007 Rupiah Star Invest Corp - 12,000 US Dollars Star Invest Corp - 11,753 PT Paiton Energy - 6,594 - 18,347 Total other long-term loans - 30,347 Less: Portion due within one year - 6,594 Non-current portion - 23,753 The interest rates on other long-term loans are as follows: 2008 2007 US Dollars - 6.4-13.5 Rupiah - 15

a. Star Invest Corp

As at 31 December 2007, the outstanding balance of the loans were Rp 12,000 and US1,247,823. The loan facilities bear annual fixed interest rate and three-month SIBOR plus a certain percentage, respectively. In December 2008, all loan facilities were fully repaid by the Company.

b. PT Paiton Energy

A US7,000,000 non-interest bearing loan was granted by PT Paiton Energy “PE” to Adaro, to defray the construction costs associated with the Kelanis facility. The loan was repayable by Adaro in ten equal annual instalments commencing on 30 September 1999 which were to offset against service fees payable by PE to Adaro for exclusive use of the Kelanis facility under the Use of Kelanis Facility Agreement. As at 31 December 2007, the outstanding balance under this facility was US700,000. In December 2008, the loan facility from PE was fully repaid by Adaro.

25. DERIVATIVE INSTRUMENT

On 19 March 2008, Adaro entered into an interest rate swap contract with DBS Bank Ltd, with notional amounts of US600,000,000. The transaction underlying this contract is the syndicated credit facility agreement amounting to US750,000,000 refer to Note 23a. Based on this transaction, DBS Bank Ltd receives payments of quarterly fixed interest at a rate of 2.945 per annum and pays to Adaro a floating interest rate of US-LIBOR. This contract will be due on 7 December 2012. The notional amount of US600,000,000 will be reduced gradually to US70,588,235 on 7 December 2012. This transaction is an effective cashflow hedge for purposes of the accounting standards. As at 31 December 2008, this contract had a negative fair value of US19,063,426, net of current portion of US4,667,796.

26. SUBORDINATED LOAN 2008

2007 US Dollars Third party: Great Oasis Equities Ltd - 94,190 On 20 November 2006, SIS and GOE entered into subordinated loan agreements, whereby GOE agreed to subordinate its loan amounting to US8,000,000 and US2,000,000 to any of SIS’ debt to any other party. The loan bears interest at rate of 12 per annum. In August 2008, this subordinated loan was fully paid through refinancing using the Senior Credit Facility refer to Note 23b.