Description of Preemptive Rights

- Public 2,372,793,740 237,279,374,000 49.00 3,037,949,518 303,794,951,800 49.00 Total Issued and Paid-up Capital 4,842,436,500 484,243,650,000 100.00 6,199,897,354 619,989,735,400 100.00 Shares in Portfolio 10,157,563,500 1,015,756,350,000 8,800,102,646 880,010,264,600 In the event that all Right Shares offered with respect to this Right Issue I are not exercised by all of the Companys shareholders, with the exception of the Republic of Indonesia as a shareholder, and in the event that there are New Shares remaining unsubscribed subsequent to such allocation, the Company’s capital structure subsequent to the Republic of Indonesia on a proforma basis shall be as follows: Name of Shareholder Prior to Right Issue I Subsequent to Right Issue I Nominal Value Rp.100.- per share Nominal Value Rp.100.- per share Number of Shares Total Nominal Value Rp Number of Shares Total Nominal Value Rp Authorized Capital A Series Dwiwarna Shares 1 100 1 100 B Series 14,999,999,999 1,499,999,999,900 14,999,999,999 1,499,999,999,900 Total Authorized Capital 15,000,000,000 1,500,000,000,000 15,000,000,000 1,500,000,000,000 Issued and Paid-up Capital A Series Dwiwarna Shares - The State the Republic of Indonesia A Series 1 100 0.00 1 100 0.00 B Series Shares - The State the Republic of Indonesia B Series 2,469,642,759 246,964,275,900 51.00 3,161,947,835 16,194,783,500 51.00 - Public 2,372,793,740 237,279,374,000 49.00 2,372,793,740 237,279,374,000 38.27 - Stand-by Buyers 665,155,778 66,515,577,800 10.73 PT Bahana Securities Affiliated 219,501,407 21,950,140,700 3.54 PT Danareksa Sekuritas Affiliated 226,152,964 22,615,296,400 3.65 PT Mandiri Sekuritas Affiliated 219,501,407 21,950,140,700 3.54 Total Issued and Paid-up Capital 4,842,436,500 484,243,650,000 100.00 6,199,897,354 619,989,735,400 100.00 Total Shares in Portfolio 10,157,563,500 1,015,756,350,000 8,800,102,646 880,010,264,600 The Company’s Majority Shareholder, namely the Republic of Indonesia shall exercise its rights in this Rights Issue I in accordance with its portion of ownership as stipulated in Law No. 14 of 2016 concerning the State Budget of 2016 Budget Year juncto Law no. 12 of 2016 concerning the Amendment of Law No. 14 of 2015 concerning the State Budget of 2016 Budget Year, which implementation is stipulated by the Regulation of the Government of the Republic of Indonesia No. 44 of 2015 concerning the Additional Capital Investment of the Republic of Indonesia in the Share Capital of Perusahaan Perseroan Persero PT Pembangunan Perumahan Tbk. In the event that the public shareholders do not exercise their rights to subscribe to the Right Shares offered in this Right Issue I in accordance with their respective preemptive rights, the percentage of ownership of such public shareholders shall be diluted by a maximum of 21.89 twenty one point eight nine percent. Holders of the Preemptive Rights who do not exercise their rights to purchase shares with respect to this Right Issue I may sell their rights to other parties from December 8, 2016, up to December 15, 2016, whether on the Stock Exchange or outside of the Stock Exchange in accordance with FSAR No. 322015. The Company has obtained the approval from the EGMS to issue 1,357,460,854 one billion three hundred fifty seven million four hundred sixty thousand eight hundred fifty four new shares, each having a nominal value of Rp100.- one hundred Rupiah per share. The estimated amount of proceeds to be received by the Company in this Right Issue I is approximately Rp4,411,747,775,500 four trillion four hundred eleven billion seven hundred forty seven million seven hundred seventy five thousand five hundred Rupiah. Pursuant to the FSAR No. 322015, this Right Issue I shall be effective upon approval of the Companys EGMS, which was held on August 22, 2016, and upon receipt of Effective Statement from the FSA. All of the Preemptive Rights shares shall be issued from portfolio and shall be listed on the IDX with due considerations to the prevailing laws and regulations. The Right Shares shall have identical rights in all respect including the right to receive dividends and rank equally with the Company’s existing paid-up shares. Each fraction of Preemptive Right shall be rounded down, in accordance with the provisions of FSAR No. 322015, in the event that shareholders own Preemptive Rights in the form of a fraction, the rights over such fraction of securities must be sold by the Company, and the proceeds of such sales shall be deposited to the Companys account.

1. Description of Preemptive Rights

The Company has obtained the approval from the EGMS to issue 1,357,460,854 one billion three hundred fifty seven million four hundred sixty thousand eight hundred fifty four new shares, each having a nominal value of Rp100.- one hundred Rupiah per share “Right Shares”. The estimated amount of proceeds to be received by the Company in this Right Issue I is approximately Rp4,411,747,775,500 four trillion four hundred eleven billion seven hundred forty seven million seven hundred seventy five thousand five hundred Rupiah. Each holder of 500,000 five hundred thousand Existing Shares whose name is registered in the Companys Shareholder Register “SR” as of December 6, 2016, shall be entitled to 140,163 one hundred forty thousand one hundred sixty three Preemptive Rights, where each 1 one Preemptive Right shall provide the holder with the right to subscribe to 1 one New Share at an Exercise Price of Rp3,250 three thousand two hundred fifty Rupiah per share, which shall be paid in full upon subscription of the Preemptive Rights. The number of New Shares offered in this Right Issue I by way of Preemptive Rights issue shall be the maximum number of shares which shall be issued from portfolio and listed on the Indonesia Stock Exchange, with due considerations to the prevailing laws and regulations. The series of shares to be issued shall be B Series Ordinary Shares. Shares offered in this Right Issue I shall be issued based on the Preemptive Rights issued by the Company to the eligible shareholders. Preemptive Rights are tradable during the trading period by transferring the ownership of Preemptive Rights through book-entry settlement of Preemptive Rights between Securities Account at KSEI. Holders of Preemptive Rights intending to trade shall open the Securities Accounts at the Members of Stock Exchange or Custodian Banks which have been registered as Account Holders in KSEI. Several important terms which shall be considered with respect to this Preemptive Rights are as follows: 2. Parties Entitled to Preemptive Right Certificate Shareholders entitled to acquire Preemptive Rights shall be the Shareholders whose names are registered in the Companys SR on December 6, 2016, at 16.00 Western Indonesian Time. 3. Legitimate Preemptive Right Certificate Holders Legitimate Preemptive Right Certificate Holders are: a. The Companys shareholders whose name are legitimately registered in the Companys SR as of December 6, 2016, up to 16.00 Western Indonesian Time, whose Preemptive Rights are not sold until the end of the Preemptive Rights trading period. b. The buyers of Preemptive Rights whose names are stated on the Preemptive Right Certificate until th end of the Preemptive Rights trading period, or c. The holders of Preemptive Rights administered in the Collective Depository at KSEI up the last date of the Preemptive Rights trading period. 4. Trading of Preemptive Right Certificate Holders of Preemptive Rights may trade their Preemptive Rights Certificate during the trading period, which shall commence from December

8, 2016, up to December 15, 2016. 6. Request for Preemptive Right Certificate Split