FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES

PT. TUNAS BARU LAMPUNG Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2011 AND DECEMBER 31, 2010 AND CONSOLIDATED COMPREHENSIF STATEMENTS OF INCOME FOR THE SIX MONTHS PERIOD ENDED JUNE 30, 2011 AND 2010 Continued - 39 - Standard Chartered Bank, Jakarta SCB On September 21, 2009, SCB and the Company agreed to terminat e „The Target Redemption Forward Currency Option‟ contract. Accordingly, the Company will pay a total amount of US 800 thousand, without interest, and to be paid over 32 months starting December 22, 2009. As of June 30, 2011 and December 31, 2010, liability to SCB amounted to US 325 thousand and US 475 thousand, respectively.

23. FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES

Fair value is the value at which a financial instrument could be exchanged between parties who understand and are willing to conduct fair transactions, and is not a sales value due to financial difficulties or a forced liquidation. The fair value is obtained from quoted prices or discounted cash flow model, as appropriate. The following table sets forth carrying amounts and estimated fair value of the Company and its subsidiaries financial assets and liabilities at June 30, 2011 and December 31, 2010: Estimasi Nilai Estimasi Nilai Wajar Wajar FINANCIAL ASSETS Financial Current Assets Cash and cash equivalents 319,615,018 319,615,018 242,981,146 242,981,146 Short-term investment 10,400,000 10,400,000 10,033,300 10,033,300 Trade accounts receivable 211,372,559 211,372,559 224,146,244 224,146,244 Other accounts receivable 4,928,732 4,928,732 5,753,891 5,753,891 Guarantee deposit 16,324,369 16,324,369 13,103,632 10,181,333 Other current assets - - 504,376 504,576 Total financial current assets 562,640,678 562,640,678 496,522,589 493,600,490 Financial Noncurrent Assets Other non current receivables - related parties 8,084,895 8,084,895 6,207,226 6,207,226 Total Financial Assets 570,725,573 570,725,573 502,729,815 499,807,716 FINANCIAL LIABILITES Financial Current Liabilites Short term bank loans 619,136,454 619,136,454 696,715,583 696,715,583 Trade accounts payable 217,573,197 217,573,197 176,756,260 176,756,260 Accrued expenses 18,424,327 18,424,327 28,846,585 28,846,585 Other current liabilities 90,589,351 90,589,351 94,649,618 94,649,618 Total financial current liabilities 945,723,329 945,723,329 996,968,046 996,968,046 Financial Noncurrent Liabilites Due to - related partties - - 777,278 777,278 Long-term liabilities current and noncurrent Long-term bank loans 588,599,806 588,599,806 617,816,807 617,816,886 Other payables 12,144,025 12,144,025 15,120,725 15,120,725 Borrowings 6,608,617 6,608,617 5,686,567 5,687,114 Due to stockholders 8,689,265 8,689,265 8,689,265 8,689,265 Total financial Noncurrent Liabilities 616,041,713 616,041,713 648,090,642 648,091,268 Total Financial Liabilities 1,561,765,042 1,561,765,042 1,645,058,688 1,645,059,314 June 30, 2011 December 31, 2010 Nilai Tercatat Nilai Tercatat PT. TUNAS BARU LAMPUNG Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2011 AND DECEMBER 31, 2010 AND CONSOLIDATED COMPREHENSIF STATEMENTS OF INCOME FOR THE SIX MONTHS PERIOD ENDED JUNE 30, 2011 AND 2010 Continued - 40 - The following methods and assumptions were used by the Company and its subsidiaries to estimate the fair value of each class of financial instrument: Current financial assets and liabilities Due to the short term nature of the transactions, the carrying amounts of the current financial assets and financial liabilities approximate the estimated fair market values. Non-current financial assets and liabilities 1 Financial instruments quoted in an active market Consist of short-term investments in subordinated bonds. The fair values are determined based on the latest published quoted price as of June 30, 2011 and December 31, 2010. 2 Long-term fixed-rate and variable rate financial liabilities Consist of long-term bank loans, borrowings, and other payables. The fair value of the financial liabilities is determined by discounting the future cash flows using applicable rates from observable current market transactions for instruments with similar terms, credit risk, and remaining maturities. 3 Other long-term financial assets and liabilities Consist of due from and due to related parties and other non-current assets, and due to stockholders. Fair value is based on discounted future cash flows adjusted to reflect counterparty risk for financial asset and the Company and its subsidiaries‟ credit risk for financial liabilities using current market rates for similar instruments.

24. CAPITAL STOCK