Description of Direct Subsidiaries and Indirect Subsidiary

87 The Company fully believes that to oversee its operations and secure its wealth, an internal control system is required as a tool. The Company’s internal control system comprises the relevant risk management policies and procedures to effectively perform the control function while minimizing the risks that may arise. The Company has conducted various supervisory activities, both strategic and routine, in accordance with the Annual Work Program “PKPT”, including: • Preparation of Self Assessment Guidelines for Good Corporate Governance GCG implementation, and implementation of its self assessment. • Preparation of Risk Based Audit Guidelines. • Tasking external auditors as counterparties in internal control activities. • Monitoring the follow-up of audit findings by the internal control staff and the external auditor public accounting firm. • Improving the quality of the internal control system’s staff through education, seminars and workshops. • Maintaining the independence of the internal control system, which reports directly to the Directors. There can be no assurance that this internal control system will reduce risk of fraud or other risks. However, the Company is committed to continuously improving its internal control system.

10. Description of Direct Subsidiaries and Indirect Subsidiary

As of the date of this Prospectus, the Company has direct and indirect ownerships in seven Subsidiaries and one Indirect Subsidiary as follows: A. Description of Direct Subsidiaries As of the date of this Prospectus, the Company has seven Direct Subsidiaries, in which it has more than 50.0 shareholding. These include: No. Subsidiary Line of Business Percentage of Ownership Year of Initial Investment Location of Operations Operational Information 1. Intertrend Industry and trade of industrial products 99.0 direct ownership by the Company 2012 Sidoardjo, East Java Operating 2. Interkraft Trade, construction, mining, industry, agriculture, transportation, printing and service 99.0 direct ownership by the Company 2012 Sidoardjo, East Java Operating 3. Interkayu Service 80.0 direct ownership by the Company 2015 Sidoardjo, East Java Operating 4. Belayan Forestry, industry, trade, import and agency 99.0 direct ownership by the Company 2012 Samarinda, East Kalimantan Operating 5. Narkata Forestry, industry, trade, import and agency 99.0 direct ownership by the Company 2011 Samarinda, East Kalimantan Operating 6. Intera Industry, service, trade, construction, transportation, agriculture, animal 99.0 direct ownership by the Company 2012 Sidoardjo, East Java Operating 88 No. Subsidiary Line of Business Percentage of Ownership Year of Initial Investment Location of Operations Operational Information husbandry, fisheries, plantation, forestry and mining. 7. Integriya Trade and service 99.0 direct ownership by the Company 2013 Sidoardjo, East Java Operating The following sets out the contributions of each Direct Subsidiary in relation to income, profit before tax, total assets and total liabilities from the consolidated financial statements of the Company for the year ended on December 31, 2016 as follows: in Rupiah Name of Company Contribution to Revenue Contribution to Profit Loss Before Tax Contribution to Total Assets Contribution to Total Liabilities The Company 721,991,285,692 226,082,727,426 1,748,598,784,324 715,964,754,853 Intertrend 268,280,536,674 33,617,011,508 643,789,530,229 310,904,984,135 Interkraft 128,376,213,013 7,085,070,404 551,351,273,799 282,929,357,109 Interkayu 77,000,321,155 2,242,692,473 75,866,792,817 44,449,499,492 Belayan 185,006,814,595 8,447,098,068 322,969,591,993 240,180,865,944 Narkata 61,344,043,338 11,938,939,766 123,485,183,728 68,490,816,246 Intera 136,741,268,362 34,712,415,959 171,087,267,570 113,015,861,751 Integriya 36,204,535,529 11,752,835,055 105,934,757,320 96,351,811,009 Elimination 291,556,039,319 112,806,511,081 661,208,971,285 220,446,721,870 Total Consolidated Amount 1,323,388,979,039 195,081,224,522 3,081,874,210,495 1,651,841,228,669 A1. Intertrend Establishment and Business Activities Intertrend, domiciled in Sidoarjo Regency, is a limited liability company established in the Republic of Indonesia. Intertrend was established under the Deed of Limited Liability Company Intertrend No. 04 dated March 4, 1993, as subsequently revised by the Deed No. 52 dated July 27, 1995, and Deed No. 49 dated January 23, 1996, drawn up before Ida Yudayati, S.H., a Notary in Sidoarjo. The aforementioned deeds were approved by the Minister of Justice of the Republic of Indonesia under Decree No. 02-5.886.HT.01.01.TH.96 dated March 6, 1996, registered in the registry of Surabaya District Court Administration Office under No. 12221996, Administrator of Surabaya District Court dated July 30, 1996. Intertrend’s Articles of Association has been amended several times, and the most recent amendment was made based on the Deed of Meeting Resolutions No. 8 dated September 2, 2016, drawn up before Dyah Ayu Ambarwati, S.H., M.Kn., a Notary in Pasuruan Regency. The deed was approved and reported to the MoLHR and registered in the Legal Entity Administration System database of the Ministry of Law and Human Rights under i Letter of Approval on Amendment to Intertrend’s Articles of Association No. AHU-0016497.AH.01.02.Tahun 2016 dated September 14, 2016, and registered in the Company Register in accordance with the Companies Law under No. AHU-0106811.AH.01.11.Tahun 2016 dated September 14, 2016, and ii the Receipt of Notification of Amendment to Articles of Association No. AHU-AH.01.03-0079734 dated September 14, 2016, the Intertrend’s Articles of Association. Intertrend is domiciled at Jl. Industri No. 28, RT 010 RW 003, Sukorejo Village, Buduran District, Sidoarjo Regency, East Java. 89 The aims and objectives of Intertrend as set out in the Deed of Minutes of Extraordinary General Meeting of Shareholders of the Limited Liability Company Intertrend No. 10 dated March 10, 2008, drawn up before Choiriyah, S.H., a Notary in Sidoarjo, approved by the MoLHR and registered in the Legal Entity Administration System database of the Ministry of Law and Human Rights under the Letter of Approval on Amendment to Intertrend’s Articles of Association AHU-24133.AH.01.02.Tahun 2008 and registered in the Company Register in accordance with the Companies Law under No. AHU-0035344.AH.01.09 Tahun 2008 dated May 9, 2008, are to engage in industrial activities and trade of industrial products. To achieve the aforementioned aims and objectives, Intertrend may carry out the following business activities: a. Operate a company engaged in industrial activities, by incorporating and operating the furniture industry business; and b. Trade the industrial products referred to above, both in the domestic and international markets through export, and other business activities related to the business activities referred to above. Intertrend’s current business activities focus on the production of wood-based furniture and other wood- based building component products with market focus on in the US and countries in the EU such as Germany, France and Netherlands. Management and Supervision Pursuant to Intertrend’s Articles of Association, the composition of the Board of Commissioners and Board of Directors of Intertrend are as follows: Board of Commissioners Commissioner : Halim Rusli Directors President Director : Meity Lin-lin Director : Widjaja Karli Capital Structure and Shareholder Composition Based on Intertrend’s Articles of Association, its capital structure and shareholder composition are as follows: Description Nominal Value Rp1.000.000.- per share Percentage of Ownership Number of Shares Total Nominal Value Rp Authorized Capital 155,006 155,006,000,000 Issued and Fully paid-in capital The Company 154,096 154,096,000,000 99.42 PT Duta Emerald Utama 910 910,000,000 0.58 Issued and Fully paid-in capital 155,006 155,006,000,000 100 Total Shares in Portfolio - - Key Financial Highlights The following table presents Intertrend’s key financial highlights derived from Intertrend’s financial statements as of and for the years ended on December 31, 2016, 2015 and 2014. Intertrend’s consolidated financial statements as of December 31, 2016, 2015, and 2014, and for the years ended on those dates were audited by Teramihardja, Pradhono Chandra, Registered Public 90 Accountans, an independent auditor, based on the auditing standards set out by Indonesian Institute of Public Accountant the IAPI. The auditor’s report dated April 28, 2017, which was unmodified and signed by Agustina Felisa, with an emphasis of matter in relation to the change in the functional currency of the Company and certain Subsidiaries from USD to IDR. In Rupiah Description December 31 2014 2015 2016 Statements of Financial Position Current Assets 204,545,854,980 256,140,861,752 304,008,771,450 Non-Current Assets 105,824,741,280 137,540,081,575 339,780,758,779 Total Assets 310,370,596,260 393,680,943,327 643,789,530,229 Current Liabilities 171,455,971,487 222,012,368,521 264,509,814,883 Non-Current Liabilities 12,249,962,088 13,450,833,567 46,395,169,252 Total Liabilities 183,705,933,575 235,463,202,088 310,904,984,135 Share Capital 35,000,000,000 55,000,000,000 155,006,000,000 Additional Paid-in Capital 20,000,000,000 - - Revaluation Surplus of Fixed Assets - net 35,615,727,069 29,739,826,595 115,574,793,802 Exchange Difference Due to Translation of Financial Statements 15,137,118,402 34,619,020,345 34,619,020,345 Retained Earnings 20,911,817,214 38,858,894,299 27,684,731,947 Total Equity 126,664,662,685 158,217,741,239 332,884,546,094 Total Liabilities and Equity 310,370,596,260 393,680,943,327 643,789,530,229

a. Non-Current Assets December 31, 2016 compared to December 31, 2015

Intertrend’s total non-current assets as of December 31, 2016 increased by 147.0, or Rp202,240,677,204, from Rp137,540,081,575 as of December 31, 2015 to Rp339,780,758,779. The increase was mainly due to the revaluation of fixed assets conducted by Intertrend.

b. Total Assets December 31, 2016 compared to December 31, 2015

Intertrend’s total assets as of December 31, 2016 increased by 63.5 or Rp250,108,585,902, from Rp393,6980,943,327 as of December 31, 2015 to Rp643,789,530,229. The increase was mainly due to the revaluation of fixed assets conducted by Intertrend and an increase in advances for purchase of fixed assets.

c. Non-Current Liabilities December 31, 2016 compared to December 31, 2015

Intertrend’s total non-current liabilities as of December 31, 2016 increased by 244.9 or Rp32,944,355,685, from Rp13,450,833,567 as of December 31, 2015 to Rp46,395,169,252. The increase was mainly due to an increase in deferred tax liabilities arising from revaluation of fixed assets.

d. Total Liabilities December 31, 2016 compared to December 31, 2015

91 Intertrend’s total liabilities as of December 31, 2016 increased by 32.0 or Rp75,441,782,047, from Rp235,463,202,088 as of December 31, 2015 to Rp310,904,984,135. The increase was mainly due to the revaluation of fixed assets conducted by Intertrend, an increase in lease payables and an increase in bank loans, which were in line with Intertrend’s growing operational activities.

e. Total Equity December 31, 2016 compared to December 31, 2015

Intertrend’s total equity as of December 31, 2016 increased by 110.4 or Rp174,666,804,855, from Rp158,217,741,329 as of December 31, 2015 to Rp332,884,546,094. The increase was mainly due to additional paid-in capital from Intertrend’s shareholders and the revaluation of fixed assets conducted by Intertrend in 2016. In Rupiah Description For the year ended on December 31 2014 2015 2016 STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Net Sales 167,298,304,160 248,524,196,112 268,280,536,674 Gross Profit 30,848,733,896 63,586,153,440 80,157,562,138 Net Income 3,760,741,092 17,195,194,080 23,901,670,068 Total Comprehensive Income for the Year 3,779,689,754 31,553,078,554 110,660,804,855

a. Net sales Year Ended on December 31, 2015 compared to the Year Ended on December 31, 2014

Intertrend’s net sales for the year ended on December 31, 2015 increased by 48.6 or Rp81,225,891,952, from Rp167,298,304,160 for the year ended on December 31, 2014 to Rp248,254,196,112. The increase in net sales was mainly due to an increase of export sales volume and an increase in new international and local customers.

b. Gross profit Year Ended on December 31, 2015 compared to the Year Ended on December 31, 2014

Intertrend’s gross profit for the year ended on December 31, 2015 increased 106.1 or Rp32,737,419,544, from Rp30,848,733,896 for the year ended on December 31, 2014 to Rp63,586,153,440. The increase in gross profit was mainly due to more efficient use of raw materials and an increase in sales volume, resulting in lower fixed manufacturing costs as a result of the economies of scale. c. Profit for the year Year Ended on December 31, 2016 compared to the Year Ended on December 31, 2015 For the abovementioned reasons, Intertrend’s profit for the year ended on December 31, 2016 increased by 39.0 or Rp6,706,475,988, from Rp17,195,194,080 for the year ended on December 31, 2015 to Rp23,901,670,068. Year Ended on December 31, 2015 compared to the Year Ended on December 31, 2014 92 For the abovementioned reasons, Intertrend’s profit for the year ended on December 31, 2015 increased by 357.2 or Rp13,434,452,988, from Rp3,760,741,092 for the year ended on December 31, 2014 to Rp17,195,194,080. d. Total comprehensive income for the year Year Ended December 31, 2016 compared to the Year Ended on December 31, 2015 Intertrend’s comprehensive income for the year ended on December 31, 2016 increased by 250.7 or Rp79,107,726,301, from Rp31,553,078,554 for the year ended on December 31, 2015 to Rp110,660,804,855. The increase in comprehensive income for the year was mainly due to an increase in gain on revaluation of fixed assets. 93 Year Ended December 31, 2015 compared to the Year Ended on December 31, 2014 Intertrend’s comprehensive income for the year ended on December 31, 2015 increased by 734.8 or Rp27,773,388,800, from Rp3,779,680,754 for the year ended on December 31, 2014 to Rp31,553,078,554. The increase in comprehensive income for the year was mainly due to an increase in export sales volume and an increase in translation adjustments in 2015. A2. Interkraft Establishment and Business Activities Interkraft, domiciled in Sidoarjo Regency, is a limited liability company established under the laws and regulations in the Republic of Indonesia. Interkraft was established under the Deed of Limited Liability Company Interkraft No. 12 dated January 8, 2002, drawn up before Ida Yudyati, S.H., a Notary in Sidoarjo. The aforementioned deed was approved by the Minister of Justice of the Republic of Indonesia under Decree No. C-05345 HT.01.01.TH.2002 dated April 2, 2002, registered in the Company Register in accordance with the requirements of Mandatory Company Registration Law in the Company Registration Office of Sidoarjo Regency under No. 92BH.1317VI2002 dated June 20, 2002 and was announced in the State Gazette of the Republic of Indonesia No. 88 dated November 4, 2003, Supplement No. 11130 of 2003. Interkraft’s Articles of Association has been amended several times, and the most recent amendment was made based on the Deed of Meeting Resolutions No. 5 dated June 30, 2016, drawn up before Dyah Ayu Ambarwati, S.H., M.Kn., a Notary in Pasuruan Regency. The deed was approved and reported to the MoLHR and registered in the Legal Entity Administration System database of the Ministry of Law and Human Rights under i Letter of Approval on Amendment to the Articles of Association of Interkraft, a Limited Liability Company No. AHU-0013760.AH.01.02.Tahun 2016 dated August 1, 2016, and registered in the Company Register in accordance with the Companies Law under No. AHU- 0089204.AH.01.11.Tahun 2016 dated August 1, 2016, and ii the Receipt of Notification of Amendment to Articles of Association of Interkraft No. AHU-AH.01.03-0068172 dated August 1, 2016, and registered in the Company Register in accordance with the Companies Law under No. AHU- 0089204.AH.01.11.TAHUN 2016 dated August 1, 2016. Interkraft is domiciled at Jl. Rajawali Industri, Betro Village, Sedati District, Sidoarjo Regency, East Java. The aims and objectives of Interkraft as set forth in Article 3 of Interkraft’s Articles of Association, which are set out in the Deed of Minutes of Extraordinary General Meeting of Shareholders of Interkraft No. 09 dated March 10, 2008, drawn up before Choiriyah, S.H., a Notary in Sidoarjo, which was approved by the MoLHR and registered in the Legal Entity Administration System database of the Ministry of Law and Human Rights under the Letter of Approval on Amendment to Interkraft’s Articles of Association AHU- 24037.AH.01.02.Tahun 2008 dated May 8, 2008, and registered in the Company Register in accordance with the Companies Law under No. AHU-0035194.AH.01.09.Tahun 2008 dated May 8, 2008, are to engage in trade, construction, mining, industrial, agriculture, transportation, printing and services. To achieve the aforementioned aims and objectives, Interkraft may carry out the following business activities: a. Engage in general trade, including local, inter-island, import and export trades, vendor, supplier, wholesaler, distributor and agency, whether such businesses are conducted on Interkraft’s own risk and gainloss or based on a commission from other parties on such parties’ gains losses; b. Engage in general construction, including real estate, act as a contractor for buildings, roads, bridges, irrigations, electrical and water installations, building repair, maintenance or renovation; c. Engage in general mining, among others, gold, coal, sandstone, and lime mining, exploration and exploitation of mineral water, nickel, lead and metal, iron and iron ore, drilling, excavation of stone 94 mine, clay, granite, limestone and sand by conducting drilling, processing and marketing the products; d. Engage in industrial, among others, garment, furniture, building material, food and beverage, chemical, and wood industries, including forest crop industry, plywood sawmill industry; e. Engage in agriculture, such as crops, including but not limited to, chocolate, coffee, oil palm, rubber, cotton, tea, tobacco plantations, forestry, and others; f. Engage in the transportation business, both ground and river transportation, for passenger and goods using trucks, buses, and other vehicles; g. Engage in the printing business, including binding, publishing, photocopy, reproduction, cartonage, graphic design; h. Engage in the services business in general, including advertising, entertainment, management service, consulting for manpower services, except legal and tax services. Interkraft’s current business activities focus on the production of wood-based furniture for both local and export markets. Management and Supervision Based on the Deed No. 9 dated September 2, 2016, drawn up before Dyah Ayu Ambarwati, S.H., M.Kn., a Notary in Pasuruan Regency, which was reported to the MoLHR and registered in the Legal Entity Administration System database of the Ministry of Law and Human Rights under Receipt of Notification of Company Data Change No. AHU-AH.01.03-0079877 dated September 14, 2016, and registered in the Company Register in accordance with the Companies Law under No. AHU-0107029.AH.01.11.Tahun 2016 dated September 14, 2016, the composition of the Board of Commissioners and the Board of Directors of Interkraft are as follows: Board of Commissioners Commissioner : Halim Rusli Directors President Director : Dra. Sjany Tjandra Director : Hendro Rusli Capital Structure and Shareholder Composition Based on the Deed of Meeting Resolutions No. 5 dated June 30, 2016, drawn up before Dyah Ayu Ambarwati, S.H., M.Kn., a Notary in Pasuruan Regency, which was approved by the MoLHR and registered in the Legal Entity Administration System database of the Ministry of Law and Human Rights under Letter of Approval on Amendment to Interkraft’s Articles of Association No. AHU- 0013760.AH.01.02.Tahun 2016 dated August 1, 2016, and registered in the Company Register in accordance with the Companies Law under No. AHU-0089204.AH.01.11.Tahun 2016 dated August 1, 2016, Interkraft’s capital structure and shareholder composition are as follows: Description Nominal Value Rp1.000.000.- per share Percentage of Ownership Number of Shares Total Nominal Value Rp Authorized Capital 118,000 118,000,000,000 Issued and Fully paid-in capital The Company 116,820 116,820,000,000 99 PT Alam Mentari Sejahtera 1,180 1,180,000,000 1 Issued and Fully paid-in capital 118,000 118,000,000,000 100 Total Shares in Portfolio - - 95 Key Financial Highlights The following table presents Interkraft’s key financial highlights derived from Interkraft’s financial statements as of and for the years ended on December 31, 2016, 2015 and 2014. Interkraft’s consolidated financial statements as of December 31, 2016 and 2014, and the years then ended were audited by Teramihardja, Pradhono Chandra, Registered Public Accountants, an independent auditor, based on the auditing standards set out by IAPI, with unmodified opinion and an emphasis of matter in relation to the change in the functional currency from USD to Rupiah and were signed by Agustina Felisia. Interkraft’s consolidated financial statements as of December 31, 2015, and for the year ended on those dates were audited by the Public Accounting Firm Herman, Dody, Tanumihardja Rekan, an independent auditor, based on the auditing standards set out by IAPI, with unmodified opinion and were signed by Ahmad Nadhif. In Rupiah Description December 31 2014 2015 2016 Statements of Financial Position Current Assets 115,066,660,768 209,113,920,637 187,912,658,231 Non-Current Assets 114,858,607,080 219,093,611,159 363,438,615,568 Total Assets 229,925,267,848 428,207,531,796 551,351,273,799 Current Liabilities 84,224,819,401 173,945,166,616 163,829,618,421 Non-Current Liabilities 11,074,807,503 104,820,279,675 119,099,738,688 Total Liabilities 95,299,626,904 278,765,446,291 282,929,357,109 Share Capital 20,000,000,000 65,000,000,000 118,000,000,000 Additional Paid-in Capital 45,000,000,000 - I. Revaluation Surplus of Fixed Assets - net 27,318,750,040 - 114,912,116,985 Exchange Difference Due to Translation of Financial Statements 12,931,049,426 27,966,942.779 27,966,942,779 Retained Earnings 29,375,841,478 56,475,142,726 7,542,856,926 Total Equity 134,625,640,944 149,442,085,505 268,421,916,690 Total Liabilities and Equity 229,925,267,848 428,207,531,796 551,351,273,799

a. Current Assets December 31, 2015 compared to December 31, 2014

Interkraft’s total current assets as of December 31, 2015 increased by 81.7 or Rp94,047,259,869, from Rp115,066,660,768 as of December 31, 2014 to Rp209,113,920,637. The increase was mainly due to an increase in cash and cash equivalent, inventories, and advances for procurement of raw materials to be used for production.

b. Non-Current Assets December 31, 2016 compared to December 31, 2015

Interkraft’s total non-current assets as of December 31, 2016 increased by 65.9 or Rp144,345,004,409, from Rp219,093,611,159 as of December 31, 2015 to Rp363,438,615,568. The increase was mainly due to the revaluation of fixed assets conducted by Interkraft. 96 December 31, 2015 compared to December 31, 2014 Interkraft’s total non-current assets as of December 31, 2015 increased by 90.8 or Rp104,235,004,079, from Rp114,858,607,080 as of December 31, 2014 to Rp219,093,611,159. The increase was mainly due to an acquisition of fixed assets in the form of land and buildings in Lamongan to expand Interkraft’s factory and office.

c. Total Assets December 31, 2015 compared to December 31, 2014

Interkraft’s total assets as of December 31, 2015 increased by 86.2 or Rp198,282,263,948, from Rp229,925,267,848 as of December 31, 2014 to Rp428,207,531,796. The increase was mainly due to an increase in Interkraft’s advances for import purchases for production requirements and acquisition of fixed assets in the form of land and building to expand Interkraft’s factory and office.

d. Current Liabilities December 31, 2015 compared to December 31, 2014

Interkraft’s total current liabilities as of December 31, 2015 increased by 106.5 or Rp89,720,347,215, from Rp84,224,819,401 as of December 31, 2014 to Rp173,945,166,616. The increase was mainly due to additional bank loans taken by Interkraft from BNI, which Interkraft used to finance working capital and investments.

e. Non-Current Liabilities December 31, 2015 compared to December 31, 2014

Interkraft’s total non-current liabilities as of December 31, 2015 increased by 846.5 or Rp93,745,472,172, from Rp11,074,807,503 as of December 31, 2014, to Rp104,820,279,675. The increase was mainly due to additional bank loans taken by Interkraft from BNI, which Interkraft used to finance working capital and investments.

f. Total Liabilities December 31, 2015 compared to December 31, 2014

Interkraft’s total liabilities as of December 31, 2015 increased by 192.5 or Rp183,465,819,387, from Rp95,299,626,904 as of December 31, 2014 to Rp278,765,446,291. The increase was mainly due to additional bank loans taken by Interkraft from BNI, which Interkraft used to finance working capital and investments.

g. Total Equity December 31, 2016 compared to December 31, 2015

Interkraft’s total equity as of December 31, 2016 increased by 79.6 or Rp118,979,831,185, from Rp149,442,085,505 as of December 31, 2015 to Rp268,421,916,690. The increase was mainly due to additional paid-in capital from Interkraft’s shareholders and the revaluation of fixed assets. 97 In Rupiah Description For the years ended on December 31 2014 2015 2016 STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Net Sales 129,023,230,860 121,776,670,080 128,376,213,013 Gross profit 17,136,022,382 24,953,675,184 50,840,246,251 Profit loss for the year 1,916,040.180 2,273,385,744 4,224,645,855 Total Comprehensive Income for the Year 1,572,148,590 12,725,813,529 118,979,831,185

a. Gross profit Year Ended on December 31, 2016 compared to the Year Ended on December 31, 2015

Interkraft’s gross profit for the year ended on December 31, 2016 increased by 103.7 or Rp25,886,571,067, from Rp24,953,675,184 for the year ended on December 31, 2015 to Rp50,840,246,251. The increase in gross profit was mainly due to an increase in Interkraft’s sales by 5.4 and production cost efficiency. Year Ended on December 31, 2015 compared to the Year Ended on December 31, 2014 Interkraft’s gross profit for the year ended on December 31, 2015 increased by 45.6 or Rp7,817,652,802, from Rp17,136,022,382 for the year ended on December 31, 2014 to Rp24,953,675,184. The increase in gross profit was mainly due to increased production cost efficiency. b. Profit for the year Year Ended on December 31, 2016 compared to the Year Ended on December 31, 2015 For the abovementioned reasons, Interkraft’s profit for the year ended on December 31, 2016 increased by 285.8 or Rp6,498,031,599, from a loss of Rp2,273,385,744 for the year ended on December 31, 2015 to Rp4,224,645,855. Year Ended on December 31, 2015 compared to the Year Ended on December 31, 2014 For the abovementioned reasons, Interkraft’s profit for the year ended on December 31, 2015 decreased by 218.7 or Rp4,189,425,924, from Rp1,916,040,180 for the year ended on December 31, 2014 to a loss of Rp2,273,385,744. c. Total comprehensive income for the year Year Ended on December 31, 2016 compared to the Year Ended on December 31, 2015 Interkraft’s comprehensive income for the year ended on December 31, 2016 increased by 835.0 or Rp106,254,017,656, from Rp12,725,813,529 for the year ended on December 31, 2015 to Rp118,979,831,185. The increase in comprehensive income for the year was mainly due to an increase in gain on revaluation of fixed assets. Year Ended on December 31, 2015 compared to the Year Ended on December 31, 2014 Interkraft’s comprehensive income for the year ended on December 31, 2015 increased by 709.5 or Rp11,153,664,939, from Rp1,572,148,590 for the year ended on December 31, 2014 to 98 Rp12,725,813,529. The increase in comprehensive income for the year was mainly due to an increase in translation adjustments in 2015. A3. Interkayu Establishment and Business Activities Interkayu, domiciled in Sidoarjo Regency, is a limited liability company established under the laws and regulations in the Republic of Indonesia. Interkayu was established under the Deed of Limited Liability Company Interkayu No. 5 dated August 19, 2015, drawn up before Dyah Ayu Ambarwati, S.H., M.Kn., a Notary in Pasuruan Regency. The deed was approved by the MoLHR by Decree No. AHU- 2455440.AH.01.01.Tahun 2015 dated September 10, 2015. The deed was registered in the Company Register in accordance with the Companies Law under No. AHU-3552084.AH.01.11.TAHUN 2015 dated September 10, 2015 the Interkayu’s Deed of Establishment. Interkayu is domiciled at Jl. Raya Industri No. 678, RT 013 RW 07, Sukorejo Village, Sedati District, Sidoarjo Regency, East Java. No. Phone: 031 891 0434 Fax: 031 891 1391. The aims and objectives of Interkayu as set forth in Article 3 of Interkayu’s Deed of Establishment are to engage in services. To achieve the aforementioned aims and objectives, Interkayu may carry out the following business activities: a. Engage in the provision of services for the planning, coordination, consolidation, development, control, and management of share ownership and operational activities of other companies; b. Engage in other service business related to administration of company management, facility and finance; and c. Engage in construction and establishment of companies. Interkayu is currently a non-operating holding company for a Indirect Subsidiary. Management and Supervision Based on the Deed of Shareholders Resolutions of Interkayu No. 12 dated September 2, 2016, drawn up before Dyah Ayu Ambarwati, S.H., M.Kn., a Notary in Pasuruan Regency, reported to the MoLHR, registered in the Legal Entity Administration System database of the Ministry of Law and Human Rights under the Receipt of Notification of Company Data Change No. AHU-AH.01.03-0079878 dated September 14, 2016, and registered in the Company Register in accordance with the Companies Law under No. 0107030.AH.01.11.Tahun 2016 dated September 14, 2016, the composition of the Board of Commissioners and the Board of Directors of Interkayu are as follows: Board of Commissioners President Commissioner : Meity Lin-lin Commissioner : Sandy Angdjaja Directors Director : Dra. Sjany Tjandra Capital Structure and Shareholder Composition Based on Interkayu’s Deed of Establishment, its capital structure and shareholder composition were as follows: 99 Description Nominal Value Rp1.000.000.- per share Percentage of Ownership Number of Shares Total Nominal Value Rp Authorized Capital 16,560 16,560,000,000.00 Issued and Fully paid-in capital The Company 13,248 13,248,000.00 80.0 Sandy Angdjaja 3,312 3,312,000.00 20.0 Issued and Fully paid-in capital 16,560 16,560,000,000.00 100.0 Total Shares in Portfolio - - Key Financial Highlights The following table presents Interkayu’s key financial highlights derived from Interkayu’s financial statements as of and for the years ended on December 31, 2016 and 2015. Interkayu’s financial statements as of December 31, 2016, and for the year ended on this date were audited by Teramihardja, Pradhono Chandra, Registered Public Accountants, an independent auditor, based on the auditing standards set out by IAPI, with unmodified opinion and were signed by Pradhono. Interkayu’s financial statements as of December 31, 2015 and for the period from its establishment until December 31, 2015 were unaudited. In Rupiah Description December 31 2015 2016 Statements of Financial Position Current Assets 22,189,188,703 56,748,445,398 Non-Current Assets 13,667,744,193 19,118,347,419 Total Assets 35,856,932,896 75,866,792,817 Current Liabilities 2,496,168,261 43,781,862,913 Non-Current Liabilities - 667,636,579 Total Liabilities 2,496,168,261 44,449,499,492 Share Capital 16,560,000,000 16,560,000,000 Additional Paid-in Capital - 41,200,000 Retained Earnings Deficit 244,818 994,153,387 Non-Controlling Interest 16,800,519,817 15,810,246,712 Total Equity 33,360,764,635 31,417,293,325 Total Liabilities and Equity 35,856,932,896 75,866,792,817 note: unaudited

a. Current Assets December 31, 2016 compared to December 31, 2015

Interkayu’s total current assets as of December 31, 2016 increased by 155.8 or Rp23,559,256,695, from Rp22,189,188,703 as of December 31, 2015 to Rp56,748,445,398. The increase was mainly due to an increase in trade receivables, inventories and advances for purchases from WII, a subsidiary, which began commercial operations in March 2016.

b. Non-Current Assets December 31, 2016 compared to December 31, 2015

Interkayu’s total non-current assets as of December 31, 2016 increased by 39.9 or Rp5,450,603,226, from Rp13,667,744,193 as of December 31, 2015 to Rp19,118,347,419. The increase was mainly due to 100 investing activities, in the form of advances for purchases and acquisition of fixed assets to support the operational activities of WII, a subsidiary.

c. Total Assets December 31, 2016 compared to December 31, 2015

Interkayu’s total assets as of December 31, 2016 increased by 111.6 or Rp40,009,859,921, from Rp35,856,932,896 as of December 31, 2015 to Rp75,886,792,817. The increase was mainly due to an increase in trade receivables, inventories, advances for purchases and the acquisition of fixed assets in connection with the operational activities of WII, a subsidiary, which began commercial operations in March 2016.

d. Current Liabilities December 31, 2016,compared to December 31, 2015

Interkayu’s total current liabilities as of December 31, 2016 increased by 1,654.0 or Rp31,285,694,652, from Rp2,496,168,261 as of December 31, 2015 to Rp43,781,862,913. The increase was mainly due to additional bank loans of USD1,600,000 taken by Interkayu, which was used to finance working capital, and an increase in trade payables in connection with procurement of raw materials.

e. Total Liabilities December 31, 2016 compared to as of December 31, 2015

Interkayu’s total liabilities as of December 31, 2016 increased by 1,680.7 or Rp41,953,331,231, from Rp2,496,168,261 as of December 31, 2015 to Rp44,449,499,492. The increase was mainly due to additional bank loans of USD1,600,000 taken by Interkayu, which was used to finance working capital, and an increase in trade payables in connection with procurement of raw materials. In Rupiah Description For the years ended on December 31 2015 2016 STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Net Sales - 77,000,321,155 Gross Profit - 4,098,706,636 Net Income 764,635 1,984,671,310 Total Comprehensive Income for the Year 764,635 1,984,671,310 f. Profit for the year Year Ended on December 31, 2016 compared to the Year Ended on December 31, 2015 For the abovementioned reasons, Interkayu’s profit for the year ended on December 31, 2016 decreased by 259.7 or Rp1,985,435,945, from Rp764,635 for the year ended on December 31, 2015 to a loss of Rp1,984,671,310. A4. Belayan Establishment and Business Activities 101 Belayan, domiciled in Samarinda City, is a limited liability company established under the laws and regulations in the Republic of Indonesia. Belayan was established under the Deed of a Limited Liability Company PT Samarinda Forest Development Company No. 13 dated January 31, 1972, drawn up before Mohamad Ali, S.H., a Notary in Jakarta. The aforementioned deed was approved by the Minister of Justice currently the Minister of Law and Human Rights of the Republic of Indonesia under Decree No. Y.A.55455 dated December 23, 1977. Belayan changed its name from PT Samarinda Forest Development Company to Belayan pursuant to the Deed of Amendment to PT Samarinda Forest Development Company No. 12 dated October 24, 1977, drawn up before Mohamad Ali, S.H., a Notary in Jakarta, which was approved by the Minister of Justice of the Republic of Indonesia under decree No. Y.A.55455 dated December 23, 1977. Belayan’s Articles of Association has been amended several times, and the most recent amendment was made based on the Deed of Shareholder Resolutions of Belayan No. 4 dated July 21, 2016, drawn up before Dyah Ayu Ambarwati, S.H., M.Kn., a Notary in Pasuruan Regency. The deed was i approved by the MoLHR under Decree No. AHU-0013769.AH.01.02.Tahun 2016 dated August 1, 2016, and was registered in the Company Register in accordance with the Companies Law under No. AHU- 0089273.AH.01.11.Tahun 2016 dated August 1, 2016; and ii reported to the MoLHR and registered in the Legal Entity Administration System of the Ministry of Law and Human Rights under Receipt of Notification of Amendment to Belayan’s Articles of Association No. AHU-AH.01.03-0068218 dated August 1, 2016, and registered in the Company Register in accordance with the Companies Law under No. AHU-0089273.AH.01.11.TAHUN 2016 dated August 1, 2016. Belayan is domiciled at Jl. Pelita Perum. Pesona Mahakam Ruko No. 9 Harapan Baru, Loa Janan Ilir District, Samarinda City, East Kalimantan. The aims and objectives of Belayan as set forth in Article 3 of Belayan’s Articles of Association, which are set out in the Deed of Resolutions of General Meeting of Shareholders No. 221 dated May 18, 2009, drawn up before Hestyani Hassan, S.H., M.Kn., a Notary in Jakarta, are to engage in the forestry, industrial, trade, import and agency business. To achieve the aforementioned aims and objectives, Belayan may carry out the following business activities: a. Engage in forestry and forest exploitation business; b. Engage in forest product utilization and processing industry business; c. Trade forest products in domestic and international markets; d. Import materialsequipment and machinery required for a forestry business; e. Serve as an agentrepresentative of other domestic and international companies that are related to forestry. Belayan’s current business activity is to focus on natural forestry concessions that produce logs. Management and Supervision Based on the Deed of Resolutions of General Meeting of Shareholders of Belayan No. 16 dated September 5, 2016, drawn up before Dyah Ayu Ambarwati, S.H., M.Kn., a Notary in Pasuruan Regency, which was reported as proven by the Receipt of Notification of Company Data Change No. AHU- AH.01.03-0079881 dated September 14, 2016, and registered in the Company Register in accordance with the Companies Law under No. AHU-0107040.AH.01.11.TAHUN 2016 dated September 14, 2016, the composition of the Board of Commissioners and the Board of Directors of Belayan are as follows: Board of Commissioners Commissioner : Widjaja Karli 102 Directors President Director : Dr. Untung Iskandar Vice President Director : Halim Rusli Director : Ir. Andreas Nugroho Adi Director : Hendro Rusli Capital Structure and Shareholder Composition Based on the Deed of Resolutions of General Meeting of Shareholders of Belayan No. 16 dated September 5, 2016, drawn up before Dyah Ayu Ambarwati, S.H., M.Kn., a Notary in Pasuruan Regency, its capital structure and shareholder composition are as follows: Description Nominal Value Rp1.000.000.- per share Percentage of Ownership Number of Shares Total Nominal Value Rp Authorized Capital 679,070 67,907,000,000 Issued and Fully paid-in capital The Company 672,280 67,228,000,000 99 PT Integra Indo Lestari 6,790 679,000,000 1 Issued and Fully paid-in capital 679,070 67,907,000,000 100 Total Shares in Portfolio - - Key Financial Highlights The following table presents Belayan’s key financial highlights derived from Belayan’s financial statements as of and for the years ended on December 31, 2016, 2015 and 2014. Belayan’s financial statements as of December 31, 2016, and the year ended on those dates were audited by Teramihardja, Pradhono Chandra, Registered Public Accountants, an independent auditor, based on the auditing standards set out by IAPI, with unmodified opinion and were signed by Pradhono. Belayan’s financial statements as of December 31, 2015 and 2014, and the years ended on those dates were audited by Teramihardja, Pradhono Chandra, Registered Public Accountants, an independent auditor, based on the auditing standards set out by IAPI, with unmodified opinion and were signed by Agustina Felisia. In Rupiah Description December 31 2014 2015 2016 Statements of Financial Position Current Assets 131,409,493,179 252,404,109,153 227,619,306,563 Non-Current Assets 124,663,128,438 112,365,296,252 95,350,285,430 Total Assets 256,072,621,617 364,769,405,405 322,969,591,993 Current Liabilities 170,971,920,547 281,037,790,923 235,630,093,508 Non-Current Liabilities 13,078,682,309 9,449,115,748 4,550,772,436 Total Liabilities 184,050,602,856 290,486,906,671 240,180,865,944 Share Capital 56,407,000,000 56,407,000,000 67,907,000,000 Additional Paid-in Capital - - 938,000,000 Retained Earnings 15,615,018,761 17,875,498,734 13,943,726,049 Total Equity 72,022,018,761 74,282,498,734 82,788,726,049 Total Liabilities and Equity 256,072,621,617 364,769,405,405 322,969,591,993

a. Current Assets December 31, 2015 compared to December 31, 2014

103 Belayan’s total current assets as of December 31, 2015 increased by 92.1 or Rp120,994,615,974, from Rp131,409,493,179 as of December 31, 2014 to Rp252,404,109,153. The increase was mainly due to an increase in inventories and other receivables.

b. Total Assets December 31, 2015 compared to December 31, 2014

Belayan’s total assets as of December 31, 2015 increased by 42.5 or Rp108,696,783,788, from Rp256,072,621,617 as of December 31, 2014 to Rp364,769,405,405. The increase was mainly due to an increase in inventories, other receivables and acquisition of fixed assets.

c. Current Liabilities December 31, 2015 compared to as of December 31, 2014

Belayan’s total current liabilities as of December 31, 2016 increased by 64.4 or Rp110,065,870,376, from Rp170,971,920,547 as of December 31, 2014 to Rp281,037,790,923. The increase was due to an additional bank loan taken by Belayan from Exim and an increase in other payables to shareholders to finance working capital.

d. Total Liabilities December 31, 2015 compared to as of December 31, 2014

Belayan’s total liabilities as of December 31, 2015 increased by 57.8 or Rp106,436,303,815, from Rp184,050,602,856 as of December 31, 2014 to Rp290,486,906,671. The increase was due to an additional bank loan taken by Belayan from Exim and an increase in other payables to shareholders to finance working capital. In Rupiah Description For the years ended on December 31 2014 2015 2016 STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Net Sales 148,575,681,064 97,959,037,234 185,006,814,595 Gross Profit 26,845,498,546 30,127,882,538 44,206,818,317 Net Income 2,691,920,183 2,108,141,617 6,174,712,818 Total Comprehensive Income for the Year 2,881,293,716 2,260,479,973 7,568,227,315

a. Net sales Year Ended on December 31, 2016 compared to the Year Ended on December 31, 2015

Belayan’s net sales for the year ended on December 31, 2016 increased by 88.9 or Rp87,047,777,361, from Rp97,959,037,234 for the year ended on December 31, 2015 to Rp185,006,814,595. The increase in net sales was mainly due to an increase in Belayan’s sales of timber in 2016. Year Ended on December 31, 2015 compared to the Year Ended on December 31, 2014 Belayan’s net sales for the year ended on December 31, 2015 decreased by 34.1 or Rp50,616,643,830, from Rp148,575,681,064 for the year ended on December 31, 2014 to 104 Rp97,959,037,234. The decrease in net sales in 2015 was mainly due to reduced ability to transport logs from the logging site to the warehouse as the rivers had dried up.

b. Gross profit Year Ended on December 31, 2016 compared to the Year Ended on December 31, 2015

Belayan’s gross profit for the year ended on December 31, 2016 increased by 46.7 or Rp14,078,935,779, from Rp30,127,882,538 for the year ended on December 31, 2015 to Rp44,206,818,317. The increase in gross profit was mainly due to an increase in sales and lower camp overhead cost. c. Profit for the year Year Ended on December 31, 2016 compared to the Year Ended on December 31, 2015 For the abovementioned reasons, Belayan’s profit for the year ended on December 31, 2016 increased by 192.9 or Rp4,066,571,202, from Rp2,108,141,617 for the year ended on December 31, 2015 to Rp6,174,712,818. d. Total comprehensive income for the year Year Ended on December 31, 2016 compared to the Year Ended on December 31, 2015 Belayan’s comprehensive income for the year ended on December 31, 2016 increased by 234.8 or Rp5,307,747,342, from Rp2,260,479,973 for the year ended on December 31, 2015 to Rp7,568,227,315. A5. Narkata Establishment and Business Activities Narkata, domiciled in Samarinda, is a limited liability company established under the laws and regulations in the Republic of Indonesia. Narkata was established under the Deed of a Limited Liability Company Narkata No. 8 dated June 13, 1978, as subsequently amended by the Deed of Amendment No. 3 dated March 6, 1979, drawn up before Mohamad Ali, S.H., a Notary in Jakarta. The aforementioned deeds were approved by the Minister of Justice of the Republic of Indonesia under Decree No. Y.A.512512 dated April 3, 1979, and was registered in the registry of the Jakarta District Court, each under No. 2438 and No. 2439, respectively, dated June 2, 1979 and was announced in the State Gazette of the Republic of Indonesia No. 74 dated September 14, 1979, Supplement No. 502. Narkata’s Articles of Association has been amended several times, and the most recent amendment was made based on the Deed of Resolutions of General Meeting of Shareholders of Narkata No. 5 dated July 21, 2016, drawn up before Dyah Ayu Ambarwati, S.H., M.Kn., a Notary in Pasuruan Regency. The deed of which was i approved by the MoLHR under Decree No. AHU-0013768.AH.01.02.Tahun 2016 dated August 1, 2016; and ii reported to the MoLHR and registered in the Legal Entity Administration System of the Ministry of Law and Human Rights under Receipt of Notification of Amendment to Narkata’s Articles of Association No. AHU-AH.01.03-0068217 dated August 1, 2016, and registered in the Company Register in accordance with the Companies Law under No. AHU-0089272.AH.01.11.Tahun 2016 dated August 1, 2016. Narkata is domiciled at Jl. Pelita Perum. Pesona Mahakam Ruko No. 9, RT 28, Harapan Baru, Loa Janan Ilir District, Samarinda City, East Kalimantan. 105 The aims and objectives of Narkata as set forth in Article 3 of Narkata’s Articles of Association, which are set out in the Deed of Resolutions of General Meeting of Shareholders of Narkata No. 10 dated April 27, 2009, drawn up before Hestyani Hassan, S.H., M.Kn., a Notary in Jakarta, are to engage in the forestry, industrial, trade, import and agency business. To achieve the aforementioned aims and objectives, Narkata may carry out the following business activities: a. Engage in forestry and forest exploitation business; b. Engage in the forest product utilization and processing industry business; c. Trade forest products in domestic and international markets; d. Import materialsequipment and machinery required for a forestry business; e. Serve as an agentrepresentative of other domestic and international companies that are related to forestry. Narkata’s current business activity is to focus on natural forestry concessions that produce logs. Management and Supervision Based on the Deed of Shareholders Resolutions of Narkata No. 17 dated September 5, 2016, drawn up before Dyah Ayu Ambarwati, S.H., M.Kn., a Notary in Pasuruan Regency, reported to the MoLHR, registered in the Legal Entity Administration System of the Ministry of Law and Human Rights under Receipt of Notification of Amendment to Narkata’s Articles of Association No. AHU-AH.01.03-0079888 dated September 14, 2016, and registered in the Company Register in accordance with the Companies Law under No. AHU-0107048.AH.01.11.TAHUN 2016 dated September 14, 2016, the composition of the Board of Commissioners and the Board of Directors of Narkata are as follows: Board of Commissioners Commissioner : Widjaja Karli Directors President Director : Dr. Untung Iskandar Vice President Director : Halim Rusli Director : Andreas Nugroho Adi Director : Hendro Rusli Capital Structure and Shareholder Composition Based on the Deed of Shareholders Resolutions of Narkata No. 17 dated September 5, 2016, drawn up before Dyah Ayu Ambarwati, S.H., M.Kn., a Notary in Pasuruan Regency, its capital structure and shareholder composition were as follows: Description Nominal Value Rp100.0.- per share Percentage of Ownership Number of Shares Total Nominal Value Rp Authorized Capital 445,000 44,500,000,000 Issued and Fully paid-in capital The Company 440,550 44,055,000,000 99.00 PT Alam Mentari Sejahtera 4,450 445,000,000 1.00 Issued and Fully paid-in capital 445,000 44,500,000,000 100.00 Total Shares in Portfolio - - Key Financial Highlights 106 The following table presents Narkata’s key financial highlights derived from Narkata’s financial statements as of and for the years ended on December 31, 2016, 2015 and 2014. Narkata’s financial statements as of December 31, 2016, and the year ended on those dates were audited by Teramihardja, Pradhono Chandra, Registered Public Accountants, an independent auditor, based on the auditing standards set out by IAPI, with unmodified opinion and were signed by Pradhono. Narkata’s financial statements as of December 31, 2015 and 2014, and for the years ended on those dates were audited by Teramihardja, Pradhono Chandra, Registered Public Accountants, an independent auditor, based on the auditing standards set out by IAPI, with unmodified opinion and were signed by Agustina Felisia. 107 In Rupiah Description December 31 2014 2015 2016 Statements of Financial Position Current Assets 61,197,240,074 67,510,556,818 89,993,658,770 Non-Current Assets 29,003,174,785 32,779,231,078 33,491,524,958 Total Assets 90,200,414,859 100,289,787,896 123,485,183,728 Current Liabilities 43,842,023,026 52,824,609,496 67,512,768,518 Non-Current Liabilities 2,379,459,456 1,934,862,778 978,047,728 Total Liabilities 46,221,482,482 54,759,472,274 68,490,816,246 Share Capital 30,000,000,000 30,000,000,000 44,500,000,000 Additional Paid-in Capital - - 220,000,000 Retained Earnings 13,978,932,377 15,530,315,622 10,274,367,482 Total Equity 43,978,932,377 45,530,315,622 54,994,367,482 Total Liabilities and Equity 90,200,414,859 100,289,787,896 123,485,183,728

a. Current Assets December 31, 2016 compared to December 31, 2015

Narkata’s total current assets as of December 31, 2016 increased 33.3 or Rp22,483,101,952, from Rp67,510,556,818 as of December 31, 2015 to Rp89,993,658,770. The increase was mainly due to an increase in trade receivables and this was offset with a decrease in inventories. The increase in trade receivables was due to an increase in sales to customers.

b. Non-Current Liabilities December 31, 2016 compared to December 31, 2015

Narkata’s total non-current liabilities as of December 31, 2016 decreased by 49.5 or Rp956,815,050, fromRp1,934,862,778 as of December 31, 2015 to Rp978,047,728. The decrease was mainly due to the repayment of non-bank financial institutions loans of an amount greater than that of the additional loans taken in 2016, and a decrease in post-employment benefit obligation. Description For the years ended on December 31 2014 2015 2016 STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Net Sales 52,542,213,507 18,256,907,471 61,344,043,338 Gross Profit 12,591,901,356 7,297,769,018 19,217,082,655 Profit for the year 3,204,404,705 1,489,082,371 8,820,258,570 Total Comprehensive Income for the Year 3,344,758,137 1,551,383,245 9,244,051,860

a. Net Sales Year Ended on December 31, 2016 compared to the Year Ended on December 31, 2015

Narkata’s net sales for the year ended on December 31, 2016 increased by 236.0 or Rp43,087,135,867, from Rp18,256,907,471 for the year ended on December 31, 2015 to Rp61,344,043,338. The increase in net sales was mainly due to an increase in Narkata’s sales of timber in 2016. In 2015, net sales decreased as delivery was hampered by the drying up of the river that Narkata used as a distribution channel. 108 Year Ended on December 31, 2015 compared to the Year Ended on December 31, 2014 Narkata’s net sales for the year ended on December 31, 2015 decreased by 65.3 or Rp34,285,306,036, from Rp52,542,213,507 for the year ended on December 31, 2014 to Rp18,256,907,471. The decrease in net sales was mainly due to Narkata not being able to transport logs from the logging site to the warehouse as the rivers had dried up.

b. Gross profit Year Ended on December 31, 2016, compared to the Year Ended on December 31, 2015

Narkata’s gross profit for the year ended on December 31, 2016 increased by 163.3 or Rp11,919,313,637, from Rp7,297,769,018 for the year ended on December 31, 2015 to Rp19,217,082,655. The increase in gross profit was mainly due to a decrease in camp overhead cost. Year Ended on December 31, 2015, compared to the Year Ended on December 31, 2014 Narkata’s gross profit for the year ended on December 31, 2015 decreased by 42.0 or Rp5,294,132,338, from Rp12,591,901,356 for the year ended on December 31, 2014 to Rp7,297,769,018. The decrease in gross profit was mainly due to a decrease in net sales as Narkata was unable to transport logs from the logging site to the warehouse as the rivers had dried up.

c. Profit for the year

Year Ended on December 31, 2016 compared to the Year Ended on December 31, 2015 For the abovementioned reasons, Narkata’s profit for the year ended on December 31, 2016 increased by 492.3 or Rp7,331,176,199, from Rp1,489,082,371 for the year ended on December 31, 2015 to Rp8,820,258,570. Year Ended on December 31, 2015 compared to the Year Ended on December 31, 2014 For the abovementioned reasons, Narkata’s profit for the year ended on December 31, 2015 decreased by 53.5 or Rp1,715,322,334, from Rp3,204,404,705 for the year ended on December 31, 2014 to Rp1,489,082,371. d. Total Comprehensive Income for the Year Year Ended on December 31, 2016 compared to the Year Ended on December 31, 2015 Narkata’s total comprehensive income for the year ended on December 31, 2016 increased by 495.9 or Rp7,692,668,615, from Rp1,551,383,245 for the year ended on December 31, 2015 to Rp9,244,051,860. The increase in total comprehensive income for the year was mainly due to an increase in timber sales in 2016. Year Ended on December 31, 2015 compared to the Year Ended on December 31, 2014 Narkata’s total comprehensive income for the year ended on December 31, 2016 decreased by 53.6 or Rp1,793,374,892, from Rp3,344,758,137 for the year ended on December 31, 2014 to Rp1,551,383,245. The decrease in total comprehensive income for the year was mainly due to a decrease in net sales because Narkata was unable to transport logs from the logging site to the warehouse as the rivers had dried up. 109 A6. Intera Establishment and Business Activities Intera, domiciled in Sidoarjo, is a limited liability company established under the laws and regulations in the Republic of Indonesia. Intera was established under the Deed of a Limited Liability Company Intera No. 3 dated June 1, 2012, drawn up before Siti Nurul Yuliami, S.H., M.Kn., a Notary in Surabaya. The aforementioned deed was approved by the Minister of Justice of the Republic of Indonesia under Decree No. AHU-56566.AH.01.01.Tahun 2012 dated November 5, 2012, and registered in the Company Register in accordance with the Mandatory Company Registration Law under No. AHU- 0095978.AH.01.09.Tahun 2012 dated November 5, 2012 and was announced in the State Gazette of the Republic of Indonesia No. 45 dated June 4, 2013, Supplement No. 63350. Intera’s Articles of Association has been amended several times, and the most recent amendment was made based on the Deed of Resolutions of General Meeting of Shareholders No. 21 dated September 23, 2016, drawn up before Dyah Ayu Ambarwati, S.H., a Notary in Pasuruan Regency, with respect to the change in Intera’s aims and objectives. The deed was approved by the MoLHR under Decree No. AHU-0018803.AH.01.02.Tahun 2016 dated October 13, 2016, and registered in the Company Register in accordance with the Companies Law under No. AHU-0120991.AH.01.11.Tahun 2016 dated October

13, 2016, the Deed No. 212016.