INVESTMENTS IN ASSOCIATED AND OTHER COMPANIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 30 June 2012 unaudited and 31 December 2011 audited and For the period of six months ended 30 June 2012 and 2011 unaudited Expressed in thousand of rupiah, unless otherwise stated 36

8. INVENTORIES continued

2012 2011 Beginning balance Houses 273,979,815 93,798,572 Shops 9,106,572 7,893,122 Transfer from building inventories under construction 187,833,971 922,110,438 Cost of sales Houses 375,676,771 648,582,745 Shops 47,239,194 92,133,000 Ending balance 48,004,393 283,086,387 Real estate development inventories which are already covered by signed salespurchase agreements but have not yet been recognized as sales are as follows: 2012 2011 Inventories available for sale Houses 257,800,619 273,083,643 Shops 9,408,624 6,730,376 Total inventories available for sale 267,209,243 279,814,019 Inventories under developmentconstruction Buildings 669,463,357 681,799,184 Total Inventories under developmentconstruction 669,463,357 681,799,184 Total 936,672,600 961,613,203 As of 30 June 2012 and 31 December 2011, inventories in such properties known as Ebony, Clover, Royal Orchard 2, Maple Residence, Palm Residence, Graha Boulevard and Jasmine Residence are available for sale, and inventories in Royal Orchard 2, Royal Orchard 3, Orchard Square 1, The Tiara, Graha Boulevard, Crystal, Spring Boulevard, Golden 8 extension, Grisea, Canary, Scarlet, Starling, Ruby extension, Pascal Residence, Darwin Residence, Sherwood apartment and Scientia apartment are under developmentconstruction. The borrowing costs which were capitalized to inventories amounted to Rp12,049,840 and Rp7,573,617 Notes 15 and 16 in 2012 and 2011, respectively. Houses, shops and apartment inventories are covered by insurance against fire and other risks with PT Asuransi AXA Indonesia, PT Asuransi Central Asia and PT Asuransi Ekspor Indonesia Persero, all third parties, with total coverage of US801,354 and Rp1,171,309,588 in 2012 and 2011. The Company and Subsidiaries’ management is of the opinion that the above coverage is adequate to cover possible losses arising from such risks. As of 30 June 2012 and 31 December 2011, inventories are not used as collateral for any loans. The Company and Subsidiaries’ management believes that inventories are realizable at the above amounts and no provision for losses is necessary. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 30 June 2012 unaudited and 31 December 2011 audited and For the period of six months ended 30 June 2012 and 2011 unaudited Expressed in thousand of rupiah, unless otherwise stated 37

9. PREPAID EXPENSES

This account consists of prepayments to third parties for: 2012 2011 Mortgage administration fee 1,544,351 2,935,150 Insurance 2,481,120 2,305,027 Advertising 2,758,523 5,975,366 Others 6,480,434 1,433,927 Total prepaid expenses 13,264,428 12,649,470

10. ADVANCES

This account consists of advances for: 2012 2011 Purchase of land 105,545,778 104,083,994 Purchase of fixed assets 3,231,723 1,069,919 Purchase of Construction materials Note 36b 143,231,473 97,252,540 Sales commission Note 36a - 10,681,506 Others 90,203,495 10,849,416 Total advances 342,212,469 223,937,375

11. UNDEVELOPED LAND

2012 2011 Location Aream 2 Amount Aream 2 Amount Summarecon Bandung 1,443,168 419,420,007 1,229,111 351,853,766 Summarecon Serpong 1,581,196 295,596,605 1,577,256 216,284,063 Summarecon Bekasi 4,966,820 907,781,180 579,584 117,813,517 Summarecon Bali 1,200 3,701,938 1,200 3,701,938 Others 242,508 153,955,932 242,508 153,928,632 Total undeveloped land 8,234,892 1,780,455,662 3,629,659 843,581,916 The status of ownership of undeveloped land is as follows: 2012 2011 Status Area m2 Area m2 Released rights “ pelepasan hak ” 5,201,580 2,180,736 Land certificates already issued 3,033,312 1,448,923 Total 8,234,892 3,629,659 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of 30 June 2012 unaudited and 31 December 2011 audited and For the period of six months ended 30 June 2012 and 2011 unaudited Expressed in thousand of rupiah, unless otherwise stated 38

11. UNDEVELOPED LAND continued

As of 30 June 2012 and 31 December 2011 undeveloped land properties with carrying value of Rp316,790,098 and Rp217,039,129 are pledged as collateral for loans from banks and bonds payable notes 15 and 16.

12. FIXED ASSETS

The details of fixed assets are as follows: 30 June 2012 Balance as of 1 January 2012 Additions Deductions Reclassificat- ions Balance as of 30 June 2012 2012 Movements Cost : Land 15,426,052 - - - 15,426,052 Buillding and infrastructures 208,834,878 6,137,736 - 537,976 214,434,638 Machinery and Heavy equipment 15,619,895 616,896 - 41,178 16,195,613 Vehicles 57,486,128 4,508,609 863,899 - 61,130,838 Furniture and office equipment 138,389,580 12,907,891 142,246 - 151,155,225 435,756,533 24,171,132 1,006,145 579,154 458,342,366 Construction in progress 40,014,790 15,271,055 - 40,169,911 15,115,934 Total cost 475,771,323 39,442,187 1,006,145 40,749,065 473,458,300 Accumulated depreciation Buildings and infrastructures 60,154,934 7,725,347 - 3,978 67,876,303 Machinery and heavy equipment 7,188,698 956,860 - 119,485 8,026,073 Vehicles 28,387,045 4,707,186 637,463 - 32,456,768 Furniture and office equipment 75,613,870 10,076,982 129,702 - 85,561,150 Total Accumulated depreciation 171,344,547 23,466,375 767,165 123,463 193,920,294 Net book value 304,426,776 279,538,006