PT KRAKATAU STEEL (PERSERO) TBK AND ITS SUBSIDIARIES INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2018 AND FOR THE NINE-MONTH PERIOD THEN ENDED

                        PT

   Krakatau Steel (Persero) Tbk  dan  entitas anaknya/and its subsidiaries 

  Laporan keuangan konsolidasian interim tanggal 30 September 2018 dan periode sembilan bulan yang berakhir pada tanggal tersebut/ Interim consolidated financial statements as of September 30, 2018 and for the nine-month period then ended

  The original interim consolidated financial statements included herein are in the Indonesian language.

  PT KRAKATAU STEEL (PERSERO) TBK PT KRAKATAU STEEL (PERSERO) TBK

  DAN ENTITAS ANAKNYA AND ITS SUBSIDIARIES LAPORAN KEUANGAN KONSOLIDASIAN INTERIM

  INTERIM CONSOLIDATED FINANCIAL TANGGAL 30 SEPTEMBER 2018 STATEMENTS AS OF SEPTEMBER 30, 2018

  DAN UNTUK PERIODE SEMBILAN BULAN YANG AND FOR THE NINE-MONTH

  BERAKHIR PADA TANGGAL TERSEBUT PERIOD THEN ENDED

  Halaman/

  Daftar Isi Page Table of Contents

  Laporan Posisi Keuangan Konsolidasian Interim Consolidated Statement of Financial Interim..................................................................... 1 - 3 ...................................................................Position

  Laporan Laba Rugi dan Penghasilan Komprehensif Interim Consolidated Statement of Profit or Loss Lain Konsolidasian Interim...................................... 4 - 5 ......................... and Other Comprehensive Income

  Laporan Perubahan Ekuitas Konsolidasian Interim Consolidated Statement of Changes Interim..................................................................... 6 ..................................................................in Equity Laporan Arus Kas Konsolidasian Interim ..................... 7 ........... Interim Consolidated Statement of Cash Flows Catatan atas Laporan Keuangan Konsolidasian Notes to the Interim Consolidated Financial

  Interim..................................................................... 8 - 218 ............................................................. Statements

  

PT KRAKATAU STEEL (PERSERO) Tbk PT KRAKATAU STEEL (PERSERO) Tbk

DAN ENTITAS ANAKNYA AND ITS SUBSIDIARIES LAPORAN POSISI KEUANGAN

  INTERIM CONSOLIDATED STATEMENT OF KONSOLIDASIAN INTERIM FINANCIAL POSITION

Tanggal 30 September 2018 As of September 30, 2018

(Disajikan dalam ribuan Dolar AS,

  (Expressed in thousands of US Dollar, kecuali dinyatakan lain) unless otherwise stated)

30 Sept. 2018/

  31 Des. 2017/ Catatan/ Notes Sept. 30, 2018 Dec. 31, 2017 ASET LANCAR

CURRENT ASSETS

  Kas dan setara kas 180.045 280.870 Cash and cash equivalents 2c,2e,2f,2g 4,9,35,39

• Investasi jangka pendek

  1.734 2e,2g,5,35,39 Short-term investment

  2c,2e,2f,2g

Kas yang dibatasi penggunaannya 6,9,17,35 1.696 5.758 Restricted cash

Piutang usaha 2e,2g,3,7,

  Trade receivables Pihak ketiga 17,24,35,39 143.144 147.976 Third parties Pihak berelasi 2c,9 80.849 56.714 Related parties

  Piutang lain-lain 2e,2g,8, Other receivables

  Pihak ketiga 20,35,39 3.775 6.252 Third parties Pihak berelasi 2c,9 6.902 10.598 Related parties Persediaan 2h,3,10,17,24 464.125 488.502 Inventories Uang muka dan biaya dibayar

di muka 2i,11 22.912 15.083 Advances and prepaid expenses

Pajak dibayar di muka 2t,21 13.538 8.210 Prepaid taxes

  

Total Aset Lancar 916.986 1.021.697 Total Current Assets

ASET TIDAK LANCAR

NON-CURRENT ASSETS

  

Estimasi tagihan pajak 2t,21 26.048 31.741 Estimated claims for tax refund

2e,2g,2j, Penyertaan saham 12,35 120.485 129.248 Investments in shares of stock Aset pajak tangguhan 2t,3,21 142.861 135.280 Deferred tax assets

Aset tetap 2k,3,13,17,24 2.661.734 2.624.457 Fixed assets

Properti investasi 2l,3,14 38.695 38.692 Investment properties

Aset takberwujud 2v,15,37 27.575 34.690 Intangiable assets

Aset tidak lancar lain-lain

  Other non-current assets Piutang jangka panjang 2c,2g,16,35 2.251 2.947 Long-term receivables

Aset real estat 2m 16.272 15.345 Real estate assets

Aset yang tidak digunakan

dalam operasi 2k,13 1.225 1.490 Assets not used in operations

  2c,2e,2f,2g

Kas yang dibatasi penggunaannya 24,35,39 30.395 31.330 Restricted cash

2g,2k Lain-lain 35,37,39 51.040 47.469 Others

  Total Aset Tidak Lancar 3.118.581 3.092.689 Total Non-Current Assets TOTAL ASET 4.035.567 4.114.386 TOTAL ASSETS The accompanying notes to the interim consolidated financial

  Catatan atas laporan keuangan konsolidasian interim statements form an integral part of these consolidated terlampir merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian secara keseluruhan. financial statements taken as a whole.

  1

  PT KRAKATAU STEEL (PERSERO) Tbk PT KRAKATAU STEEL (PERSERO) Tbk

  DAN ENTITAS ANAKNYA AND ITS SUBSIDIARIES LAPORAN POSISI KEUANGAN

  INTERIM CONSOLIDATED STATEMENT OF KONSOLIDASIAN INTERIM (lanjutan)

  FINANCIAL POSITION (continued) Tanggal 30 September 2018

  As of September 30, 2018

(Disajikan dalam ribuan Dolar AS, (Expressed in thousands of US Dollar,

kecuali dinyatakan lain) unless otherwise stated)

  30 Sept. 2018/

  31 Des. 2017/ Catatan/ Notes Sept. 30, 2018 Dec. 31, 2017

  LIABILITAS DAN EKUITAS LIABILITIES AND EQUITY LIABILITAS JANGKA PENDEK

  CURRENT LIABILITIES 2c,2e,2g, 6,7,9,10,13

  

Pinjaman jangka pendek 17,35,39 1.060.652 923.127 Short-term loans

Utang usaha 2e,2g Trade payables

  Pihak ketiga 18,35,39 91.101 148.824 Third parties Pihak berelasi 2c,9 79.456 102.191 Related parties Utang lain-lain 2e,2g

  Other payables Pihak ketiga 19,35,39 10.195 10.777 Third parties Pihak berelasi 2c,9 3.520 5.643 Related parties

  

Utang pajak 2t,3,21 6.480 13.522 Taxes payable

2e,2g Beban akrual 22,35,39 38.112 28.236 Accrued expenses Liabilitas imbalan kerja jangka

  Short-term employee benefits pendek 2g,2s,3,26 10.519 17.458 liabilities

Uang muka penjualan dan lainnya 2c,2e,9,23,39 33.614 41.038 Sales and other advances

  Bagian pinjaman jangka panjang 2c,2e,2g,7,

yang jatuh tempo dalam waktu 9,10,13,24 Current maturities of long-term

satu tahun 35,39 62.102 70.444 loans Bagian liabilitas keuangan jangka

panjang yang jatuh tempo dalam 2e,2g,25 Current maturities of long-term

waktu satu tahun 35,39 572 645 financial liabilities

  

Total Liabilitas Jangka Pendek 1.396.324 1.361.905 Total Current Liabilities

LIABILITAS JANGKA PANJANG NON-CURRENT LIABILITIES

  

Liabilitas pajak tangguhan 2t,3,21 1.468 326 Deferred tax liabilities

Uang muka konstruksi, bagian jangka Advances for construction, panjang 2f,23,39

  

79

87 long-term portion Pinjaman jangka panjang, setelah 2c,2e,2g

dikurangi bagian yang jatuh tempo 7,9,10,13 Long-term Loans, net of current

dalam waktu satu tahun 23,35,39 859.309 797.864 maturities

  Liabilitas jangka panjang, setelah

dikurangi bagian yang jatuh 2e,2g,25 Long-term liabilities, net of current

tempo dalam waktu satu tahun 35,39 49.894 48.805 maturities Liabilitas Imbalan kerja jangka

  Long-term employee benefits panjang 2s,3,26 50.240 52.590 liabilities

  Total Liabilitas Jangka Panjang 960.990 899.672 Total Non-Current Liabilities TOTAL LIABILITAS 2.357.314 2.261.577 TOTAL LIABILITIES The accompanying notes to the interim consolidated financial

  Catatan atas laporan keuangan konsolidasian interim statements form an integral part of these consolidated terlampir merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian secara keseluruhan. financial statements taken as a whole.

  2

30 Sept. 2018/

  Catatan atas laporan keuangan konsolidasian interim terlampir merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian secara keseluruhan.

  Issued and fully paid - penuh - 19.346.396.900 saham

  Notes

  TOTAL EQUITY TOTAL LIABILITAS DAN EKUITAS 4.035.567 4.114.386 TOTAL LIABILITIES AND EQUITY Catatan/

  Total Equity Attributable to Kepada Pemilik Entitas Induk 1.683.845 1.858.991 Owners of the Parent Entity

Kepentingan Nonpengendali (5.593) (6.182) Non-controlling Interests

  

Dicadangkan 146.834 146.834 Appropriated

Tidak dicadangkan (787.571) (750.189) Unappropriated

Total Ekuitas Yang Dapat Diatribusikan

  Saldo laba (akumulasi kerugian) losses)

  Penghasilan komprehensif lain 2k,2s,13,16,26 1.214.872 1.352.636 Other comprehensive income Retained earnings (accumulated

  Dwiwarna dan 19.346.396.899 share and 19,346,396,899 saham Seri B 28 987.573 987.573 Series B shares

Tambahan modal disetor, neto 1b,2p,29 122.137 122.137 Additional paid-in capital, net

   19,346,396,900 shares which yang terdiri dari 1 saham Seri A consist of 1 Series A Dwiwarna

  Series B shares Modal ditempatkan dan disetor

  The accompanying notes to the interim consolidated financial statements form an integral part of these consolidated financial statements taken as a whole.

  Dwiwarna dan 39.999.999.999 Dwiwarna share and 39.999.999.999 saham Seri B

  Modal Dasar - 40.000.000.000 saham Authorized capital - 40,000,000,000 yang terdiri dari 1 saham Seri A shares which consist of 1 Series A

  Share capital Nilai nominal Rp500 (angka penuh) par value Rp500 (full amount) per saham per share

  ENTITY Modal saham

  EQUITY ATTRIBUTABLE TO DIATRIBUSIKAN KEPADA PEMILIK OWNERS OF THE PARENT ENTITAS INDUK

  EKUITAS EQUITY EKUITAS YANG DAPAT

  31 Des. 2017/ Sept. 30, 2018 Dec. 31, 2017

  INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued) As of September 30, 2018 (Expressed in thousands of US Dollar, unless otherwise stated)

  DAN ENTITAS ANAKNYA LAPORAN POSISI KEUANGAN KONSOLIDASIAN INTERIM (lanjutan) Tanggal 30 September 2018 (Disajikan dalam ribuan Dolar AS, kecuali dinyatakan lain) PT KRAKATAU STEEL (PERSERO) Tbk AND ITS SUBSIDIARIES

TOTAL EKUITAS 1.678.253 1.852.809

  3 PT KRAKATAU STEEL (PERSERO) Tbk

  PT KRAKATAU STEEL (PERSERO) Tbk PT KRAKATAU STEEL (PERSERO) Tbk

  DAN ENTITAS ANAKNYA AND ITS SUBSIDIARIES LAPORAN LABA RUGI DAN

  INTERIM CONSOLIDATED STATEMENT OF PENGHASILAN KOMPREHENSIF LAIN PROFIT OR LOSS AND OTHER KONSOLIDASIAN INTERIM COMPREHENSIVE INCOME

Untuk Periode Sembilan Bulan yang For the Nine-Month Period Ended

Berakhir pada Tanggal 30 September 2018

  September 30, 2018 (Disajikan dalam ribuan Dolar AS,

  (Expressed in thousands of US Dollar,

kecuali dinyatakan lain) unless otherwise stated)

  30 Sept. 2018/ Catatan/

  30 Sept. 2017/ Notes

  Sept. 30, 2018 Sept. 30, 2017 2c,2q,9,

  

PENDAPATAN NETO 1.276.096 31,41 1.039.914 NET REVENUES

2c,2k,2q,9,

  

BEBAN POKOK PENDAPATAN (1.161.919) 32,41 (883.991) COST OF REVENUES

LABA BRUTO 114.176 155.923 GROSS PROFIT

2c,2i,2k

Beban penjualan (21.961) 2q,2s,9,33 (20.847) Selling expenses

  2c,2i,2k,

Beban umum dan administrasi (102.859) 2q,2s,9,33 (124.584) General and Administrative expenses

Penjualan limbah produksi 2.523 2.024 Sales of waste products

Laba pelepasan aset tetap - 2.348 Gain on disposal of fixed assets

Pendapatan operasi lainnya 7.388 2g,2q,12 14.873 Other operating income

Beban operasi lainnya (9.972) 13,21 (6.540) Other operating expenses

LABA OPERASI (10.704) 23.197 OPERATING PROFIT

Bagian rugi dari entitas asosiasi dan

  Share in loss of associates and ventura bersama (8.222) 12 (37.550) joint venture

Pendapatan keuangan 13.184 11.708 Finance income

  

Pajak terkait pendapatan keuangan (2.637) (2.342) Tax relating to finance income

Laba (rugi) selisih kurs, neto 50.576 2e,2g,19 (2.155) Gain (loss) on foreign exchange, net

Beban keuangan (79.106) 17,24 (74.470) Finance expenses

RUGI SEBELUM PAJAK FINAL DAN

  LOSS BEFORE FINAL TAX AND BEBAN (MANFAAT) PAJAK

  INCOME TAX EXPENSE

PENGHASILAN (36.909) (81.611) (BENEFIT)

Pajak final (1.923) 2t,21 (2.642) Final tax RUGI SEBELUM BEBAN (MANFAAT)

  LOSS BEFORE INCOME

PAJAK PENGHASILAN (38.832) (84.253) TAX EXPENSE (BENEFIT)

BEBAN (MANFAAT) PAJAK

  INCOME TAX EXPENSE PENGHASILAN (2.116)

  21 (5.632) (BENEFIT)

RUGI PERIODE BERJALAN (36.716) (78.621) LOSS FOR THE PERIOD

  The accompanying notes to the interim consolidated financial Catatan atas laporan keuangan konsolidasian interim statements form an integral part of these consolidated terlampir merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian secara keseluruhan. financial statements taken as a whole.

  4

  PT KRAKATAU STEEL (PERSERO) Tbk PT KRAKATAU STEEL (PERSERO) Tbk

  DAN ENTITAS ANAKNYA AND ITS SUBSIDIARIES LAPORAN LABA RUGI DAN

  INTERIM CONSOLIDATED STATEMENT OF PENGHASILAN KOMPREHENSIF LAIN PROFIT OR LOSS AND OTHER KONSOLIDASIAN INTERIM (lanjutan)

  COMPREHENSIVE INCOME (continued)

Untuk Periode Sembilan Bulan yang For the Nine-Month Period Ended

Berakhir pada Tanggal 30 September 2018

  September 30, 2018 (Disajikan dalam ribuan Dolar AS,

  (Expressed in thousands of US Dollar,

kecuali dinyatakan lain) unless otherwise stated)

  30 Sept. 2018/ Catatan/

  30 Sept. 2017/ Notes

  Sept. 30, 2018 Sept. 30, 2017 PENGHASILAN KOMPREHENSIF LAIN

  OTHER COMPREHENSIVE INCOME Pos-pos yang tidak akan

  Items that will not be reclassified direklasifikasi ke laba rugi to profit or loss

  Pengukuran kembali program Remeasurement of defined imbalan pasti 2s (7.180) benefits program -

Surplus (defisit) revaluasi aset tetap (119.155) 2k,12,13 82.409 Revaluation surplus (deficit) of fixed assets

  Pajak penghasilan terkait pos-pos yang tidak akan direklasifikasi Income tax relating to items that will

• ke laba rugi 21 1.795 not be reclassified to profit or loss

  Pos yang akan direklasifikasi Item that may be reclassified ke laba rugi to profit or loss

  Difference in foreign currency Selisih kurs karena penjabaran translation of the financial laporan keuangan entitas anak statements of the subsidiarie,

asosiasi dan ventura bersama, neto (18.685) 2b,2j (913) associates and joint venture, net

Pajak penghasilan terkait pos yang akan direklasifikasi

  Income tax relating to item that may be ke laba rugi - 21 reclassified to profit or loss -

  TOTAL PENGHASILAN (RUGI) KOMPREHENSIF TOTAL COMPREHENSIVE INCOME

  

PERIODE BERJALAN (174.556) (2.510) (LOSS) FOR THE PERIOD

RUGI PERIODE BERJALAN YANG LOSS FOR THE PERIOD

  DAPAT DIATRIBUSIKAN KEPADA: ATTRIBUTABLE TO:

  Pemilik entitas induk (37.382) 34 (75.049) Owners of the parent entity

Kepentingan nonpengendali 666 2b,27 (3.572) Non-controlling interests

TOTAL (36.716) (78.621) TOTAL

TOTAL PENGHASILAN (RUGI)

  TOTAL COMPREHENSIVE INCOME KOMPREHENSIF PERIODE BERJALAN (LOSS) FOR THE PERIOD

  YANG DAPAT DIATRIBUSIKAN KEPADA: ATTRIBUTABLE TO:

  

Pemilik entitas induk (175.146) 1.039 Owners of the parent entity

Kepentingan nonpengendali 589 2b,27 (3.549) Non-controlling interests

TOTAL (174.556) (2.510) TOTAL

RUGI PER SAHAM DASAR

  BASIC LOSS PER SHARE YANG DAPAT DIATRIBUSIKAN ATTRIBUTABLE TO OWNERS KEPADA PEMILIK ENTITAS INDUK

  OF THE PARENT ENTITY

(dalam Dolar AS penuh) (0,0019) 2u,34 (0,0039) (in full US Dollar amount)

  The accompanying notes to the interim consolidated financial Catatan atas laporan keuangan konsolidasian interim statements form an integral part of these consolidated terlampir merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian secara keseluruhan. financial statements taken as a whole.

  5

DAN ENTITAS ANAKNYA

  AND ITS SUBSIDIARIES LAPORAN PERUBAHAN EKUITAS KONSOLIDASIAN INTERIM

INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

  Untuk Periode Sembilan Bulan yang Berakhir pada Tanggal 30 September 2018 For the Nine-Month Period Ended September 30, 2018

  (Disajikan dalam ribuan Dolar AS, kecuali dinyatakan lain) (Expressed in thousands of US Dollar, unless otherwise stated) _{Ekuitas yang Dapat Diatribusikan Kepada Pemilik Entitas Induk/ Equity Attributable to Owners of the Parent Entity Penghasilan Komprehensif Lainnya/ Other Comprehensive Income Modal Saham Tambahan Foreign Currency Ditempatkan Modal Translation of the Surplus Revaluasi dan Disetor Disetor, neto Financial Statement of Aset Tetap/ Total Penghasilan Retained Earnings (Accumulated Losses) Saldo Laba (Akumulasi Kerugian)/ Keuangan Entitas Anak, Bersama/ Difference in Asosiasi dan Ventura} Selisih Kurs karena _{penjabaran Laporan}

_{Catatan / and Fully Paid Paid-in Dicadangkan/ Tidak dicadangkan/ and Joint Venture Surplus of Fixed Comprehensive nonpengendali/ Non- Total Ekuitas/}

_{Notes Share Capital Capital, net Appropriated Unappropriated*) Assets Income Total/ Total controlling interests Total Equity}

Penuh/ Issued / Additional Subsidairies, Associates Revaluation Lainnya/ Total Other Kepentingan _{Balance as of January 1, 2017} Saldo pada tanggal 1 Januari 2017 987.573 122.137 146.834 (658.631) (60.973) 1.304.660 1.243.687 1.841.600 (1.923) 1.839.677 Rugi periode berjalan

  (75.049) (75.049) (3.572) - - (78.620) - -

  Loss for the period - -

• - Penghasilan (rugi) komprehensif lain

  (5.383) (912) 82.384 81.472 - - 76.088 23 76.112 Other comprehensive income (loss) Total penghasilan (rugi) komprehensif periode berjalan

  (912) 82.384 81.472 (3.548) (2.508) Total comprehensive income (loss) for the period - 1.040 - - (80.432)

  Saldo pada tanggal 30 Sept. 2017 ^{Balance as of Sept. 30, 2017} _(unaudited) (tidak diaudit) 987.573 122.137 146.834 (739.063) (61.885) 1.387.043 1.325.158 1.842.640 (5.471) 1.837.169 _{Balance as of January 1, 2018} Saldo pada tanggal 1 Januari 2018 987.573 122.137 146.834 (750.189) (61.474) 1.414.110 1.352.636 1.858.991 (6.182) 1.852.809

• - (37.382) - - Rugi periode berjalan

• - (37.382) - 665 (36.717) Loss for the period -

• - - - - Penghasilan (rugi) komprehensif lain

  (18.657) (119.107) (137.764) (137.764) (76) (137.839) Other comprehensive income (loss) Total penghasilan (rugi) komprehensif periode berjalan

  (37.382) (18.657) - (119.107) (137.764) - - (175.146) 589 (174.557) Total comprehensive income (loss) for the period _{Balance as of Sept. 30, 2018}

  Saldo pada tanggal 30 Sept. 2018 _(unaudited) (tidak diaudit) 987.573 122.137 146.834 (787.571) (80.131) 1.295.003 1.214.872 1.683.845 (5.593) 1.678.253

• *) Retained earnings (accumulated losses) included remeasurement of defined benefits program

  

Catatan atas laporan keuangan konsolidasian interim terlampir merupakan bagian yang The accompanying notes to the interim consolidated financial statements form an integral part of

tidak terpisahkan dari laporan keuangan konsolidasian secara keseluruhan. these consolidated financial statements taken as a whole.

  6

  

PT KRAKATAU STEEL (PERSERO) Tbk PT KRAKATAU STEEL (PERSERO) Tbk

DAN ENTITAS ANAKNYA AND ITS SUBSIDIARIES LAPORAN ARUS KAS KONSOLIDASIAN INTERIM

INTERIM CONSOLIDATED STATEMENT OF

  Untuk Periode Sembilan bulan yang Berakhir CASH FLOWS pada Tanggal 30 September 2018 For the Nine-Month Period Ended

  (Disajikan dalam ribuan Dolar AS, September 30, 2018 kecuali dinyatakan lain) (Expressed in thousands of US Dollar, unless otherwise stated)

30 Sept. 2018/

  30 Sept. 2017/ Catatan/ Sept. 30, 2018 Notes Sept. 30, 2017

ARUS KAS DARI AKTIVITAS

  CASH FLOWS FROM OPERATING OPERASI ACTIVITIES

  Penerimaan dari pelanggan 1.280.377 1.144.727 Receipts from customers

Penerimaan dari tagihan pajak 16.118 20.521 Receipts from claims for tax refund

Penerimaan dari pendapatan bunga 13.211 11.677 Receipts from interest income

Pembayaran kepada pemasok (1.277.557) (858.805) Payments to suppliers

Pembayaran beban usaha

  Payments for operating expenses

dan lainnya (26.181) (42.573) and others

Pembayaran kepada karyawan (118.514) (115.270) Payments to employees

  

Pembayaran untuk pajak (32.141) (23.716) Payments for taxes

Pembayaran untuk beban bunga Payments for interest and bank

dan beban bank (15.724) (9.429) charges

  Kas neto yang diperoleh dari (digunakan untuk) aktivitas Net cash provided by (used in)

operasi (160.411) 127.132 operating activities

ARUS KAS DARI AKTIVITAS

CASH FLOWS FROM INVESTING

  INVESTASI ACTIVITIES

  Penarikan (penempatan) investasi Withdrawal (placement) of short-term jangka pendek 1.734 5 (737) investments Hasil dari penjualan dan pelepasan aset

  Proceeds from sale and disposal tetap dan aset tidak digunakan of fixed asset and assets

  2.734 - dalam operasi and investment property

  Penerimaan deviden kas 255 12 245 Cash dividends received Penambahan penyertaan pada saham (48) Additional investments in shares of stock - Penarikan kas yang dibatasi

penggunaannya 4.998 6.341 Placement of restricted cash

Penambahan aset tetap (152.467) 13,14 (75.513) Purchase of fixed assets Kas neto yang digunakan untuk

  Net cash used in investing

aktivitas investasi (145.481) (66.977) activities

ARUS KAS DARI AKTIVITAS

  CASH FLOWS FROM FINANCING PENDANAAN ACTIVITIES

  

Penerimaan pinjaman jangka panjang 100.976 32.837 Proceeds from long-term loans

Penerimaan pinjaman Proceed from Short-term jangka pendek, neto 181.849 17 18.484 loans, net Pembayaran pinjaman jangka panjang (26.002) (29.526) Repayments of long-term loans

  

Pembayaran untuk beban bunga (51.140) (72.499) Payments for interest

Kas neto yang diperoleh dari

  Net cash provided by (used in) (digunakan untuk) aktivitas financing activities pendanaan 205.684 (50.705) KENAIKAN (PENURUNAN) NETO

  NET INCREASE (DECREASE) IN

KAS DAN SETARA KAS (100.208) 9.450 CASH AND CASH EQUIVALENTS

KAS DAN SETARA KAS AWAL 280.870

  4 264.954 CASH AND CASH EQUIVALENTS TAHUN

AT BEGINNING OF YEAR

  Dampak perubahan selisih kurs (617) (149) Effect of foreign exchange rate changes

KAS DAN SETARA KAS AKHIR

  CASH AND CASH EQUIVALENTS PERIODE 180.045 4 274.255 AT END OF PERIOD

  The accompanying notes to the interim consolidated financial Catatan atas laporan keuangan konsolidasian interim terlampir statements form an integral part of these consolidated financial merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian secara keseluruhan. statements taken as a whole.

  7

  DAN ENTITAS ANAKNYA CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN INTERIM Tanggal 30 September 2018 dan untuk Periode Sembilan Bulan yang Berakhir pada Tanggal Tersebut (Disajikan dalam ribuan Dolar AS dan dalam jutaan Rupiah, kecuali dinyatakan lain) PT KRAKATAU STEEL (PERSERO) Tbk AND ITS SUBSIDIARIES

  NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2018 and for the Nine-Month Period

  Then Ended (Expressed in thousands of US Dollar and in millions of Rupiah, unless otherwise stated)

1. UMUM

  1. GENERAL

a. Pendirian Perusahaan a.

  27 Oktober 1971 berdasarkan Akta Notaris No. 34 dari Notaris Tan Thong Kie, S.H. Perusahaan didirikan untuk mengambil alih proyek pabrik baja Trikora. Akta pendirian tersebut telah disahkan oleh Menteri Kehakiman Republik Indonesia dalam Surat Keputusannya No. J.A.5/224/4 tanggal 31 Desember 1971 dan diumumkan dalam Lembaran Berita Negara Republik Indonesia No. 44 tanggal 8 Februari 1972, Tambahan No. 19.

  PT Krakatau Steel (Persero) Tbk (the “Company”) was established in the Republic of Indonesia based on the Notarial Deed No. 34 of Tan Thong Kie, S.H., dated October 27, 1971 to take over the Trikora steel plant project. The deed of establishment was approved by the Ministry of Justice of the Republic of Indonesia in its Decision Letter No. J.A.5/224/4 dated December 31, 1971 and was published in the State Gazette of the Republic of Indonesia No. 44 dated February 8, 1972, Supplement No. 19.

  Anggaran Dasar Perusahaan telah mengalami beberapa kali perubahan, yang terakhir dengan Akta Notaris No. 77 tanggal 27 September 2018 dari Jose Dima Satria, S.H., M.Kn. yang mengatur, antara lain, perubahan susunan Dewan Komisaris dan Direksi Perusahaan. Akta perubahan ini telah dilaporkan dan diterima oleh Menteri Hukum dan Hak Asasi Manusia Republik Indonesia dalam Surat Penerimaan No. AHU- AH.01.03-0248309 tanggal 2 Oktober 2018.

  The Company‟s Articles of Association have been amended several times, most recently by Notarial Deed No. 77 dated September 27, 2018 of Jose Dima Satria, S.H., M.Kn. concerning, among others, the change in the Company‟s Boards of Commissioners and Directors. The amendment deed was reported to and accepted by the Ministry of Laws and Human Rights of the Republic of Indonesia in its Acknowledgement Letter No. AHU- AH.01.03-0248309 dated October 2, 2018. Tujuan Perusahaan adalah melaksanakan dan menunjang berbagai kebijakan dan program pembangunan Pemerintah di bidang ekonomi, khususnya dalam industri baja.

  PT Krakatau Steel (Persero) Tbk (“Perusahaan”) didirikan di Republik Indonesia pada tanggal

  Sesuai dengan Pasal 3 Anggaran Dasar Perusahaan, ruang lingkup kegiatan Perusahaan terutama meliputi bidang produksi, perdagangan dan pemberian jasa. Ruang lingkup kegiatan Perusahaan saat ini meliputi, antara lain:

  In accordance with Article 3 of the Company‟s Articles of Association, the scope of its activities mainly comprises production, trading and rendering of services. Currently, the Company is engaged in, among others:

  (i) Industri baja terpadu, yang memproduksi besi spons, slab baja, billet baja, baja lembaran panas, baja lembaran dingin, dan batang kawat;

  (i) Integrated steel industry, which produces sponge iron, slabs, billets, hot rolled coils, cold rolled coils, and wire rods;

  (ii) Perdagangan, yang meliputi kegiatan pemasaran, distribusi dan keagenan, baik dalam maupun luar negeri;

  (ii) Trading activities, comprising marketing, distribution and agency work, both in the domestic and international markets;

  (iii) Pemberian jasa seperti jasa rekayasa dan konstruksi, pemeliharaan mesin, konsultasi teknis maupun penyediaan sarana dan prasarana yang menunjang kegiatan usaha Perusahaan; dan

  (iii) Services, such as engineering and construction, machine maintenance, technical consultancy and provision of infrastructure to support the activities of the Company; and

  The Company’s Establishment

  The Company„s objective is to implement and support the various policies and programs of the Government for economic development, especially with respect to the steel industry.

  DAN ENTITAS ANAKNYA CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN INTERIM Tanggal 30 September 2018 dan untuk Periode Sembilan Bulan yang Berakhir pada Tanggal Tersebut (Disajikan dalam ribuan Dolar AS dan dalam jutaan Rupiah, kecuali dinyatakan lain) PT KRAKATAU STEEL (PERSERO) Tbk AND ITS SUBSIDIARIES

  NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2018 and for the Nine-Month Period

  Then Ended (Expressed in thousands of US Dollar and in millions of Rupiah, unless otherwise stated)

1. UMUM (lanjutan)

  a. Pendirian Perusahaan (lanjutan) a.

  The Company is majority owned by the Government of the Republic of Indonesia.

  On November 10, 2016, the Company obtained the effective statement from OJK No. S-676/D.04/2016 to conduct a Limited Public Offering with pre-emptive rights (“PMHMETD I”) of its 3,571,396,900 Series B shares with a nominal value of Rp500 (full amount) per share at a price of Rp525 (full amount) per share. On December 6, 2016, all additional shares have been listed in the Indonesia Stock Exchange (Note 28).

  Pada tanggal 10 November 2016, Perusahaan memperoleh pernyataan efektif dari OJK No. S-676/D.04/2016 untuk melakukan Penawaran Umum Terbatas Untuk Penambahan Modal Dengan Memberikan Hak Memesan Efek Terlebih Dahulu I (“PMHMETD I”) sebanyak 3.571.396.900 saham Seri B dengan nilai nominal Rp500 (angka penuh) per saham dengan harga Rp525 (angka penuh) per saham. Pada tanggal 6 Desember 2016, seluruh tambahan saham tersebut telah dicatatkan di Bursa Efek Indonesia (Catatan 28).

  On October 29, 2010, the Company obtained the effective statement from the Capital Market and Financial Institution Supervisory Agency (“Bapepam-LK”), currently as Financial Services Authority (“OJK”), No. S-9769/ BL/2010 to conduct public offering of its 3,155,000,000 new shares with nominal value of Rp500 (full amount) per share at a price of Rp850 (full amount) per share. The Company‟s shares were listed in the Indonesia Stock Exchange on November 10, 2010 (Note 28).

  Pada tanggal 29 Oktober 2010, Perusahaan memperoleh pernyataan efektif dari Badan Pengawas Pasar Modal dan Lembaga Keuangan (“Bapepam-LK”), sekarang Otoritas Jasa Keuangan (“OJK”), No. S-9769/BL/2010 untuk melakukan penawaran umum saham kepada masyarakat sebanyak 3.155.000.000 saham baru dengan nilai nominal Rp500 (angka penuh) per saham dengan harga Rp850 (angka penuh) per saham. Saham Perusahaan telah dicatatkan di Bursa Efek Indonesia pada tanggal 10 November 2010 (Catatan 28).

  The Company’s Public Offering

  b. Penawaran Umum Efek Perusahaan b.

  Perusahaan dimiliki oleh Pemerintah Republik Indonesia selaku pemegang saham mayoritas.

  The Company’s Establishment (continued)

  The Company‟s head office is located at Jalan Industri No. 5, Cilegon.

  1. GENERAL (continued)

  The Company and its production facilities are located in Cilegon, Banten. The Company started its commercial operations in 1971. The Company‟s production facilities have a production capacity of 2,450,000 metric tons (unaudited) of crude steel per year and 2,850,000 metric tons (unaudited) of finished steel products per year. The Company is constructing a Blast Furnace complex which will produce 1,200,000 metric tons (unaudited) per year of hot metal and pig iron (Note 13).

  Perusahaan dan pabriknya berlokasi di Cilegon, Banten. Perusahaan memulai operasi komersialnya pada tahun 1971. Perusahaan memiliki fasilitas produksi dengan kapasitas produksi baja kasar (crude steel) sebesar 2.450.000 metrik ton (tidak diaudit) per tahun dan kapasitas produksi baja jadi (finished steel products) sebesar 2.850.000 metrik ton (tidak diaudit) per tahun. Perusahaan sedang membangun komplek pabrik Blast Furnace yang akan memproduksi 1.200.000 metrik ton (tidak diaudit) hot metal dan pig iron per tahun (Catatan 13).

  (iv) Supporting activities such as warehousing, workshop, property, port services, education and training, waste and industrial product, power plant, water treatment, and information technology services.

  (iv) Kegiatan usaha penunjang seperti pergudangan, perbengkelan, properti, pelabuhan, pendidikan dan pelatihan, limbah produk dan limbah industri, pembangkit listrik, pengelolaan air, dan jasa teknologi informasi.

  Kantor pusat Perusahaan berkedudukan di Jalan lndustri No. 5, Cilegon.

  DAN ENTITAS ANAKNYA CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN INTERIM Tanggal 30 September 2018 dan untuk Periode Sembilan Bulan yang Berakhir pada Tanggal Tersebut (Disajikan dalam ribuan Dolar AS dan dalam jutaan Rupiah, kecuali dinyatakan lain) PT KRAKATAU STEEL (PERSERO) Tbk AND ITS SUBSIDIARIES

  NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2018 and for the Nine-Month Period

  Then Ended (Expressed in thousands of US Dollar and in millions of Rupiah, unless otherwise stated)

1. UMUM (lanjutan)

  b. Penawaran Umum Efek Perusahaan (lanjutan) b.

  Kedudukan dan Total aset sebelum tahun usaha eliminasi/ komersial dimulai/ Persentase kepemilikan/ Total assets before Domicile and year Percentage of ownership elimination

  Water treatment and distribution Cilegon, 1996 100,00 100,00 79.978 85.326

  PT Krakatau Bandar Samudera (“PT KBS”) Jasa pengelolaan pelabuhan/Port services provider Cilegon, 1996 100,00 100,00 168.879 195.993 PT Krakatau Tirta Industri (“PT KTI”) Distributor dan pengolahan air/

  PT Krakatau Engineering (“PT KE”) dan entitas anaknya/and Its subsidiaries Rekayasa dan konstruksi/ Engineering and constructions Cilegon, 1988 100,00 100,00 123.508 146.483

  Industri real estat dan perhotelan/ Real estate and hotels industry Cilegon, 1982 100,00 100,00 150.022 156.355

  PT KHI Pipe Industries (“PT KHIP”) Manufaktur pipa baja/Steel pipe production Cilegon, 1973 100,00 100,00 158.903 159.835 PT Krakatau Industrial Estate Cilegon (“PT KIEC”) dan entitas anaknya/and Its subsidiaries

  PT Krakatau Daya Listrik (“PT KDL”) Distributor dan penghasil listrik/ Generation and distribution of electricity Cilegon, 1996 100,00 100,00 227.374 233.292

  PT Krakatau Wajatama (“PT KWT”) Manufaktur baja profil dan tulangan/ Reinforcing bars and deformed and plain bars production Cilegon, 1992 100,00 100,00 101.732 79.383

  Entitas anak dan kegiatan usaha/ of commercial Subsidiaries and business activities operations started 2018 2017 2018 2017

  As of September 30, 2018 and December 31, 2017, the percentage of ownership of the Company and total assets of the subsidiaries are as follows:

  The Company’s Public Offering (continued)

  Pada tanggal 30 September 2018 dan 31 Desember 2017, persentase kepemilikan Perusahaan secara langsung dan total aset entitas anak adalah sebagai berikut:

  1. GENERAL (continued)

  (ii) approximately 34% for construction of 1x150 MW Coal Electric Steam Power Plant.

  Tenaga Uap Batubara 1x150 MW.

  2”) Plant; (ii) sekitar 34% untuk memenuhi kebutuhan proyek pembangunan Pembangkit Listrik

  (“HSM 2”); (i) approximately 66% for capital expenditure of construction of Hot Strip M ill 2 (“HSM

  (i) sekitar 66% untuk memenuhi kebutuhan modal kerja proyek pembangunan pabrik Hot Strip Mill 2

  Dana yang diperoleh Perusahaan akan digunakan dengan rincian sebagai berikut: The funds obtained by the Company will be used as follows:

  c. Entitas Anak, Entitas Asosiasi dan Ventura Bersama c. The Subsidiaries, Associates and Joint Venture

  DAN ENTITAS ANAKNYA CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN INTERIM Tanggal 30 September 2018 dan untuk Periode Sembilan Bulan yang Berakhir pada Tanggal Tersebut (Disajikan dalam ribuan Dolar AS dan dalam jutaan Rupiah, kecuali dinyatakan lain) PT KRAKATAU STEEL (PERSERO) Tbk AND ITS SUBSIDIARIES

  NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2018 and for the Nine-Month Period

  Then Ended (Expressed in thousands of US Dollar and in millions of Rupiah, unless otherwise stated)

1. UMUM (lanjutan)

  1. GENERAL (continued)

c. Entitas Anak, Entitas Asosiasi dan Ventura Bersama (lanjutan)

  PT Krakatau Medika (“PT KM”) ¹⁾ Jasa pelayanan kesehatan/ Medical services provider Cilegon, 1996 97,55 97,55 26.563 28.739

  PT Krakatau Information Technology (“PT KITech”) Jasa teknologi informasi/Information technology provider Cilegon, 1993 100,00 100,00 6.191 6.507

  PT Meratus Jaya Iron & Steel (“PT MJIS”) Manufaktur besi dan baja/Iron and steel production Jakarta, 2012 66,00 66,00 101.092 103.686 PT Krakatau National Resources (“PT KNR”) Industri pengolahan hasil tambang/

  Coal and mining industry Jakarta, 2013 100,00 100,00 3.882 3.730 Total/Total

  Entitas anak dan kegiatan usaha/ of commercial Subsidiaries and business activities operations started 2018 2017 2018 2017

  1) 3.07% is owned by PT Pelat Timah Nusantara Tbk (“PT Latinusa”) and PT Latinusa is 20.10% owned by the Company

  PT KIEC memiliki saham pada PT Rakata Realtindo (“PT RR”), dahulu PT Laksana Maju Jaya, dengan persentase kepemilikan sebesar 99,99%. PT RR bergerak dalam bidang real estat dan memulai operasi komersialnya pada tahun 2001.

  PT KIEC owns shares of PT Rakata Realtindo (“PT RR”), formerly PT Laksana Maju Jaya, with the percentage of ownership of 99.99%.

  PT RR is engaged in the business of real estate and commenced its commercial operations in 2001.