Disposal of PT Talenta Bumi

150 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 518 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

k. Acquisition and disposal of PT Bahtera Alam Tamiang continued

On 15 November 2007, the Company disposed of all of its interest in BAT to BAS for Rp 160,000. This disposal was accounted for as required under SFAS No. 38 Revised 2004, since the Company and BAS are entities under common control. 2007 Carrying amounts of the investment at disposal 166,335 Adjustment to net assets disposed of: - Difference in value from restructuring transactions of entities under common control 5,437 - Adjustment to the net assets of the subsidiary eliminated previously in the consolidation process 898 Cash received from disposal of subsidiary 160,000 Cash and cash equivalents in BAT 330 Net cash inflow from disposal of subsidiary 159,670

l. Disposal of PT Anugerah Buminusantara Abadi

On 30 April 2007, the Company disposed of 0.78 interest in ABA to KBS for Rp 157. This disposal was accounted for as required under SFAS No. 38 Revised 2004, since both the Company and KBS are entities under common control. 2007 Carrying amounts of the investments at disposal 353 Adjustment to net assets disposed of: - Difference in value from restructuring transactions of entities under common control 196 Consideration received from disposal of investments 157 Receivables from disposal of investments 157 Net cash inflow from disposal of investments - Difference in value from restructuring transactions of entities under common control - 2005 50,981 Difference in value from restructuring transactions of entities under common control - 2007 196 Difference in value from restructuring transactions of entities under common control 50,785

m. Acquisition of Revere Group Ltd and Decimal Investments Ltd i.

Acquisition of Revere Group Ltd On 17 December 2007, ATA increased its interest in Revere by 53.57, resulting in it owning 100 of Revere for an amount of US37,500,000 Rp 347,835. As such, Revere has been consolidated to ATA’s and the Group’s consolidated financial statements since December 2007. 2007 Purchase consideration through cash payment 347,835 Fair value of net assets acquired 58,163 Goodwill 289,672 Details of the assets and liabilities arising from the acquisition are as follows: 2007 Investment in equity securities 108,591 Accrued expenses 20 Net assets 108,571 Interest acquired 53.57 Net assets acquired 58,163 Goodwill 289,672 Cash and cash equivalents in Revere - Net cash outflow from acquisition of subsidiary 347,835