Schedule 55 PT BAYAN RESOURCES AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2008 AND 2007 AND 31 DECEMBER 2007, 2006 AND 2005
Expressed in million Indonesian Rupiah, unless otherwise stated
1. GENERAL continued WBM
WBM was established on 24 October 1994 based on the Notarial Deed No. 80 dated 24 October 1994 of Amrul Partomuan Pohan, S.H., notary in Jakarta. The Deed of establishment was approved by the Minister of
Justice of the Republic of Indonesia in Decree No. C2-9446.HT.01.01.TH.95 dated 2 August 1995. The Articles of Association have been amended several times. The latest amendment was based on Notarial Deed No. 4 dated
5 December 2006 of Yani Indrawaty Wibawa, S.H., notary in Jakarta, concerning, among others, the changes in WBM’s management and amendment of article 102 in WBM’s Articles of Association. The Deed was
approved by the Minister of Law and Human Rights of the Republic of Indonesia in Decree No. W7-HT.01.04-69, dated 3 January 2007.
WBM’s head office is located at Graha Irama Building, 12
th
floor, Jalan H.R. Rasuna Said Block X-1 Kav. 1 - 2, South Jakarta.
On 20 November 1997, WBM entered into a CCoW with the Government of the Republic of Indonesia. The CCoW provides for a limited term for general survey, exploration, feasibility analysis, construction and
production and a 30-year term for mining operations. The CCoW area covered 13,560 hectares in Tanah Laut and Kota Baru Regency, South Kalimantan. After relinquishments on 14 January 2005, as approved by the Minister
of Energy and Mineral Resources of the Republic of Indonesia in Decree No. 006.K40.00DJG2005, the CCoW area was reduced to 7,811 hectares in the Tanah Laut and Kota Baru Regency, South Kalimantan.
The principal activity of WBM is in the coal mining industry. Under the CCoW, WBM shall be entitled to certain tax incentives such as exemption from import duties
as well as VAT and income tax Article 22 of the Income Tax Law of 1994 on import of certain items not produced in Indonesia.
Based on the Decree of the Minister of Energy and Mineral Resources No. 388.K34.02DJB2007 dated 26 October 2007, regarding the commencement of the Exploitation Production Stage under WBM’s CCoW, the
mining area retained by WBM in this exploitation stage shall be 7,811 hectares and this approval shall be valid from 26 October 2007 until 25 October 2037.
As at 31 March 2008 and 2007 and 31 December 2007, 2006 and 2005, WBM had total employees of 186,106, 126, 95 and 23 employees, respectively unaudited.
BE
BE was established on 7 October 2004 based on Notarial Deed No. 13 dated 7 October 2004 of Yani Indrawaty Wibawa, S.H., notary in Jakarta, which has been approved by the Minister of Law and Human Rights
of the Republic of Indonesia in Decree No. C-30673 HT.01.01.TH.2004 dated 20 December 2004. The Articles of Association were last amended by Notarial Deed No. 3 dated 2 June 2005 of Yani Indrawaty Wibawa, S.H.,
notary in Jakarta, concerning, among others, the change in BE’s Articles of Association article 42 regarding the changes of shareholders composition. This Deed was approved by the Minister of Law and Human Rights of the
Republic of Indonesia in Decree No. C-16347 HT.01.04.TH.2005 dated 14 June 2005.
The principal activities of BE comprise, among others, mining, transportation and construction. BE commenced its commercial operations in 2005.
BE’s head office is located at Graha Irama Building, 12
th
floor, Jalan H.R. Rasuna Said Block X-1 Kav. 1 - 2, South Jakarta.
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Schedule 56 PT BAYAN RESOURCES AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2008 AND 2007 AND 31 DECEMBER 2007, 2006 AND 2005
Expressed in million Indonesian Rupiah, unless otherwise stated
1. GENERAL continued BE continued
As at 31 March 2008 and 2007, BE had total employees of 6 and 5 employees unaudited, respectively. As at 31 December 2007, 2006 and 2005, BE did not have any employees unaudited.
FKP
FKP was established on 22 April 1999 based on Notarial Deed No. 1 dated 22 April 1999 of Pervin, S.H., notary in Jakarta, which was approved by the Minister of Justice of the Republic of Indonesia through
Decree No. C.14230.HT.01.01.TH.99 dated 4 August 1999. FKP’s Articles of Association have been amended several times. The latest amendment was based on Notarial Deed No. 17 dated 19 February 2007 of Yani
Indrawaty Wibawa, S.H., notary in Jakarta, concerning the change in FKP’s principal activities. This amendment was approved by the Minister of Law and Human Rights of the Republic of Indonesia in Decree No. W7-04426
HT.01.04-TH.2007 dated 19 April 2007.
The principal activity of FKP is in the coal mining industry. FKP’s head office is located at Graha Irama Building, 12
th
floor, Jalan H.R. Rasuna Said, Block X-1 Kav.1 - 2, South Jakarta.
On 13 October 1999, FKP entered into a CCoW with the Government of the Republic Indonesia. The CCoW provides for a limited term of general survey, exploration, feasibility analysis, construction and
production and a 30-year term for mining operations. The CCoW area covered 89,290 hectares in West Kutai Regency, East Kalimantan. After several relinquishments, as approved by the Minister of Energy and Mineral
Resources of the Republic of Indonesia based on Decree No. 07.K40.00DJB2007, the CCoW area retained is 12,710 hectares in the West Kutai Regency, East Kalimantan.
Under the CCoW, FKP shall be entitled to certain tax incentives such as exemption from import duties as well as VAT and income tax Article 22 of the Income Tax Law of 1994 on import of certain items not
produced in Indonesia. Effective 24 April 2005, based on the Minister of Energy and Mineral Resources’ Decree
No. 07.K40.00DJB2007 dated 22 January 2007, FKP has entered the construction stage with respect to a portion of FKP’s contract area measuring 2,490 hectares, which is valid until 23 April 2008. See Note 33p for
production stage permit granted to FKP after 31 March 2008. The remaining area measuring 10,220 hectares is still in the feasibility study stage and the approval is valid up to 11 April 2007. As at the date of this report, FKP
is still in the process of obtaining a construction stage permit from the Directorate General of Minerals, Coal and Geothermal. Management believes that there will be no difficulties in obtaining the extension of the rights.
As at 31 March 2008 and 2007 and 31 December 2007, 2006 and 2005, FKP had total employees of 152, 97, 101, 97 and 4 employees respectively unaudited.
TSA
TSA was established on 21 December 1994 based on Notarial Deed No.115 dated 21 December 1994 of Raharti Sudjardjati, S.H., notary in Jakarta. The Deed has been approved by Minister of Justice of the Republic of
Indonesia through Decree No. C2-9371.HT.01.01.TH.97 dated 11 September 1997. TSA’s Articles of Association have been amended several times. The latest amendment was based on Notarial Deed No. 67 dated 8 March 2005 of
Buntario Tigris, S.H., S.E., M.H., notary in Jakarta, concerning among others, the changes of TSA’s composition of management, principal activities and authorised and paid-in capital. This amendment was approved by the Minister of
Law and Human Rights of the Republic of Indonesia in Decree No. C-18209 HT.01.04.TH.2005 dated 30 June 2005.
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