Allowance for Impairment of Financial Instruments

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements December 31, 2012 and 2011 and January 1, 2011December 31, 2010 and For the Years then Ended December 31, 2012 and 2011 Figures are Presented in Millions of Rupiah, unless Otherwise Stated - 55 -

f. Impairment of Non-Financial Assets

Impairment review is performed when certain impairment indicators are present. Determining the fair value of assets requires the estimation of cash flows expected to be generated from the continued use and ultimate disposition of such assets. Any significant changes in the assumptions used in determining the fair value may materially affect the assessment of recoverable values and any resulting impairment loss could have a material impact on results of operations. The carrying value of these assets in form of investment in shares at acquisition cost, investment properties, property and equipment and foreclosed properties are as disclosed in Notes 17, 18, 19 and 20.

4. Cash and Cash Equivalents

This account consists of: January 1, 2011 December 31, December 31, December 31, 2012 2011 2010 Cash on Hand Rupiah 267,353 414,169 211,139 Foreign currencies Note 54 17,817 54,300 59,484 Total - cash on hand 285,170 468,469 270,623 Cash in Banks Related party Note 53 Foreign currency Note 54 Bank International Ningbo, China - 22,742 277 Third parties Rupiah PT Bank Central Asia Tbk 48,860 32,091 15,922 PT Bank Internasional Indonesia Tbk 18,600 7,665 7,752 PT International Indonesia Tbk - Sharia Division 11,712 9,414 690 PT Bank CIMB Niaga Tbk 9,013 1,337 1,578 PT Bank Negara Indonesia Persero Tbk 7,050 2,003 707 PT Bank CIMB Niaga Tbk - Sharia Division 3,876 4,087 3,256 PT Bank Mandiri Persero Tbk 2,442 3,142 2,352 PT Bank OCBC NISP Tbk 1,724 1,504 219 Standard Chartered Bank, Indonesia 1,686 185 59 PT Bank Artha Graha International Tbk 1,672 386 11 PT Bank Syariah Mandiri 912 3,225 592 PT Bank Permata Tbk - Sharia Division 356 1,438 34 PT Bank Danamon Indonesia Tbk 170 246 10,120 Others below Rp 1,000 each 6,617 8,416 9,936 Total 114,690 75,139 53,228 PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements December 31, 2012 and 2011 and January 1, 2011December 31, 2010 and For the Years then Ended December 31, 2012 and 2011 Figures are Presented in Millions of Rupiah, unless Otherwise Stated - 56 - January 1, 2011 December 31, December 31, December 31, 2012 2011 2010 Cash in Banks Third parties Foreign currencies Note 54 Bank of China, Jakarta 259,446 - - PT Bank Central Asia Tbk 47,155 14,731 33,471 Sumitomo Mitsui Banking Corporation, Japan 20,715 3,346 198 United Overseas Bank, Singapore 17,547 12,947 4,730 Deutsche Bank AG, Germany 11,175 3,193 - Bank of China, Australia 9,163 37 - PT Bank Mandiri Persero Tbk 7,976 19,338 21,662 Deutsche Bank Trust Company Americas, United States 5,633 4,608 - Bank of China, China 8,515 4,103 - Bank International Ningbo, China 6,990 - - United Overseas Bank, United States 3,821 - - DBS Bank, Hong Kong 2,245 1,250 532 Standard Chartered Bank, United States 1,927 1,723 1,705 Wells Fargo Bank, N.A, United States 1,765 1,433 1,402 PT Bank Internasional Indonesia Tbk 1,696 2,653 4,833 Barclays Bank PLC, England 1,569 - - Wells Fargo Bank, N.A, England 1,515 15,522 2,464 PT Bank CIMB Niaga Tbk 870 575 1,756 OCBC, Singapore 490 7,035 3,153 UBS AG, Switzerland 46 9 1,817 Others below Rp 1,000 each 3,204 3,826 2,266 Total 413,463 96,329 79,989 Total - cash in banks 528,153 194,210 133,494 Demand deposits with Bank Indonesia Rupiah 1,107,794 1,060,348 674,610 Foreign currency Note 54 333,799 284,225 393,309 Total - demand deposits with Bank Indonesia 1,441,593 1,344,573 1,067,919 Time Deposits Third parties Rupiah PT Bank Danamon Indonesia Tbk 1,025,000 25,000 7,800 PT Bank Internasional Indonesia Tbk 995,698 340,950 197,174 PT Bank Mutiara Tbk 735,200 541,500 132,441 PT Bank Bukopin Tbk 462,250 965,200 50,200 PT BPD Jawa Barat dan Banten Tbk 497,600 501,500 1,000 PT Bank CIMB Niaga Tbk 170,550 505,550 25,250 PT Bank Permata Tbk 155,500 505,500 500 PT BPR Palu Lokadana Utama 100,000 80,000 - PT Bank Sumitomo Mitsui Indonesia 100,000 - - PT Bank OCBC NISP Tbk 87,000 2,000 2,000 PT Bank Mega Tbk 75,000 35,000 - PT Bank Rakyat Indonesia Persero Tbk 55,040 1,205,540 2,600 PT BPR Ambon 40,000 - - PT Bank Permata Tbk - Sharia Division 31,750 11,500 1,500 PT Bank Mandiri Persero Tbk 17,548 4,204 4,204 PT Bank CIMB Niaga Tbk - Sharia Division 14,650 8,200 2,400 PT Bank Syariah Mandiri 14,510 12,410 11,350 PT Bank Central Asia Tbk 14,170 24,150 2,792 PT Bank ICBC Indonesia 11,000 200,000 - PT Bank Tabungan Pensiun Nasional 10,000 300,000 -