SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2012 AND 2011 Expressed in millions of Rupiah, unless otherwise stated Appendix 516 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued

b. Changes in accounting policies continued

b.v. Withdrawal of SFAS 39 PPSAK 11- Accounting for Joint Operation continued The withdrawal of SFAS 39 effective on 1 January 2012, has changed the accounting treatment of BOT transactions, which now follows SFAS 16 Revised 2011 - Fixed Asset and is applied retrospectively. There is no significant impact on the withdrawal of this SFAS to the Group’s consolidated financial statements and therefore the impact to consolidated financial statements prior to 1 January 2012 was charged to the current year consolidated statement of comprehensive income. The adoption of these new and revised relevant standards and interpretations did not result in substantial changes to the Grup’s accounting policies and had no material effects on the amounts reported for the current or prior financial periods: - SFAS 10 Revised 2010 - The Effects of Changes in Foreign Exchange Rates - SFAS 13 Revised 2011 - Investment Property - SFAS 16 Revised 2011 - Fixed Assets - SFAS 18 Revised 2010 - Accounting and Reporting by retirement Benefit Plans - SFAS 24 Revised 2010 - Employee Benefits - SFAS 26 Revised 2011 - Borrowing Costs - SFAS 28 Revised 2010 - Accounting for Insurance - SFAS 30 Revised 2011 - Rent - SFAS 46 Revised 2010 - Income Taxes - SFAS 50 Revised 2010 - Financial Instruments: Presentation - SFAS 53 Revised 2010 - Share-based Payments - SFAS 55 Revised 2011 - Financial Instruments: Recognition and Measurement - SFAS 56 Revised 2011 - Earnings per share - SFAS 61 - Accounting for Government Grants and Disclosure of Government Assistance - SFAS 63 - Financial Reporting in Hyperinflationary Economics - SFAS 64 - Activities of mining Exploration and Evaluation of Mineral Resources - ISAK 13 - Hedges of Net Investment in Foreign Operation - ISAK 15 - SFAS 24, The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction - ISAK 19 - Applying the Restatement Approach under SFAS 63: Financial Reporting in Hyperinflationary Economics - ISAK 20 - Income Tax - Changes in the Tax Status of an Entity or its Shareholders - ISAK 23 - Rent-Incentives Operations - ISAK 24 - Evaluating the Substance of Transactions Involving Some Form A Legal Rent - ISAK 25 - Land Rights - ISAK 26 - Reassessment of Embedded Derivative Revocation of these SFAS and ISAK had no material impacts to the Group’s consolidated financial statements: - SFAS 11 - Financial Statements of Foreign Currency - SFAS 27 - Accounting for Cooperatives - SFAS 29 - Accounting for Oil and Gas - SFAS 44 - Accounting for Real Estate Development Activities - SFAS 47 - Accounting for Land - SFAS 52 - Accounting for Reporting Currency - ISAK 4 - Alternative treatment Permitted on Foreign Exchanged, and - ISAK 5 - Reporting Changes in Fair Value of Investment Securities Available for Sale Group