LONG-TERM BANK LOANS continued b.

178 Adaro Energy Annual Report 2009 From Us to Y ou Running Adaro Management Report Owning Adaro Governing Adaro Financial Report Contact Us Corporate Social Responsibility Adaro in Summary www.adaro.com PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 540 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2009 AND 2008 Expressed in million Rupiah, unless otherwise stated

23. DERIVATIVE INSTRUMENT continued b.

Fuel swap On 30 November 2009, Adaro entered into fuel swap contracts with Standard Chartered Bank, with total notional quantity of 2,160,000 barrels. Based on this contract, Standard Chartered Bank receives monthly payments using a fixed price and give monthly payments to Adaro at a floating price based on price on GAS OIL - 0.5 SINGAPORE - PLATTS ASIA-PACIFIC. This contract will be due on 31 December 2010. This transaction is an effective cash flow hedge for purposes of the accounting standards. As at 31 December 2009, this contract had an unfavourable fair value of US875,587.

24. ACCRUED STRIPPING COSTS 2009

2008 Carrying amount - beginning balance 596,391 421,522 Amortisation 41,187 29,370 Exchange difference due to financial statement translation 80,468 64,662 474,736 456,814 Movement of accrued stripping costs: Movement 120,303 123,388 Exchange difference due to financial statement translation 11,547 16,189 108,756 139,577 365,980 596,391 The actual average stripping ratio for the Tutupan area for the year ended 31 December 2009 was 5.13:1 2008: 4.14:1. The planned stripping ratio as at 31 December 2009 was 5.00:1 2008: 4.25:1.

25. MINORITY INTEREST a.

Minority interest in equity of subsidiaries 2009 2008 SDM Percentage of minority interest 48.80 48.80 Carrying amount - beginning balance - - Minority interest at acquisition - 8,673 Increase due to issuance of new shares 2,318 - Share in net income of subsidiary 51,156 1,860 Reversalrecognition of deficit minority interest by the Group 6,813 6,813 46,661 - JCI Percentage of minority interest 20 - Carrying amount - beginning balance - - Minority interest at acquisition 15,547 - Share in net income of subsidiary 453 - Exchange difference due to financial statement translation 270 - Decrease due to loss on fair value from cash flow hedges 8 - 15,722 -