Tgl 31 Maret 2017 (UNAUDITED) & 31 Des 2015 (Audited), dan untuk periode yg berakhir pada tanggal-tanggal 31 Maret 2017 dan 2016 (Unaudited)

DAN ENTITAS ANAK / AND ITS SUBSIDIARIES

LAPORAN KEUANGAN KONSOLIDASIAN/

CONSOLIDATED FINANCIAL STATEMENTS

TANGGAL 31 MARET 2017 (UNAUDITED) DAN

31 DESEMBER 2015 (AUDITED), DAN

UNTUK PERIODE YANG BERAKHIR PADA TANGGAL-TANGGAL

31 MARET 2017 DAN 2016 (UNAUDITED)/

AS OF MARCH 31, 2017 (UNAUDITED) AND

DECEMBER 31, 2015 (AUDITED), AND

PT SEMEN INDONESIA (PERSERO) Tbk

DAN ENTITAS ANAK / AND ITS SUBSIDIARIES

LAPORAN KEUANGAN KONSOLIDASIAN/

CONSOLIDATED FINANCIAL STATEMENTS

TANGGAL 31 MARET 2017 (UNAUDITED) DAN

31 DESEMBER 2015 (AUDITED), DAN

UNTUK PERIODE YANG BERAKHIR PADA TANGGAL

31 MARET 2017 DAN 2016 (UNAUDITED)/

AS OF MARCH 31, 2017 (UNAUDITED) AND

DECEMBER 31, 2015 (AUDITED), AND

LAPORAN KEUANGAN KONSOLIDASIAN - Pada tanggal 31 Maret 2017 dan 31 Desember 2016 dan untuk periode yang berakhir pada tanggal-tanggal 31 Maret 2017 dan 2016

CONSOLIDATED FINANCIAL STATEMENTS - As of March 31, 2017 and December 31, 2016 and for the period ended March 31, 2017 and 2016

Laporan Posisi Keuangan Konsolidasian 1 Consolidated Statements of Financial Position Laporan Laba Rugi dan Penghasilan

Komprehensif Lain Konsolidasian 3 Consolidated Statements of Profit or Loss and Other Comprehensive Income Laporan Perubahan Ekuitas Konsolidasian 4 Consolidated Statements of Changes in Equity Laporan Arus Kas Konsolidasian 5 Consolidated Statements of Cash Flows Catatan atas Laporan Keuangan Konsolidasian 6 Notes to Consolidated Financial Statements

INFORMASI TAMBAHAN SUPPLEMENTARY INFORMATION

Daftar I : Informasi Investasi dalam Entitas

31 Maret / 31 Desember /

March 31, December 31,

2017 Catatan/ 2016

(Unaudited) Notes (Audited)

ASET ASSETS

ASET LANCAR CURRENT ASSETS

Kas dan setara kas 2.873.516.629 5 2.834.444.371 Cash and cash equivalents

Kas dan setara kas yang Restricted cash and cash

dibatasi penggunaannya 18.060.938 5 13.984.560 equivalents

Investasi jangka pendek 10.203.004 6 13.262.624 Short-term investments

Piutang usaha Trade receivables

- Pihak ketiga, setelah dikurangi - Third parties, net of allowance

cadangan penurunan nilai for impairment losses of

sebesar Rp109.647.804 Rp109,647,804 at

pada 31 Maret 2017 March 31, 2017

dan Rp109.333.448 and Rp109,333,448 at

pada 31 Desember 2016 3.331.148.655 7 3.199.717.689 December 31, 2016

- Pihak berelasi, setelah - Related parties, net of allowance

dikurangi cadangan penurunan for impairment losses of

nilai sebesar Rp22.522.624 Rp22,522,624 at

pada 31 Maret 2017 March 31, 2017

dan Rp22.522.624 and Rp22,522,624 at

pada 31 Desember 2016 570.243.018 7,42 638.200.521 December 31, 2016

Piutang lain-lain Other receivables

- Pihak ketiga, setelah dikurangi - Third parties, net of allowance

cadangan penurunan nilai for impairment losses of

sebesar Rp9.886.001 Rp9,886,001 at

pada 31 Maret 2017 March 31, 2017

dan Rp10.095.155 and Rp10,095,155 at

pada 31 Desember 2016 151.189.589 8 154.747.650 December 31, 2016

- Pihak berelasi, setelah - Related parties, net of allowance

dikurangi cadangan penurunan for impairment losses of

nilai sebesar Rp908.776 Rp908,776 at

pada 31 Maret 2017 March 31, 2017

dan Rp909.208 and Rp909,208 at

pada 31 Desember 2016 33.438.283 8,42 25.617.852 December 31, 2016

Persediaan 3.083.315.382 9 2.671.144.517 Inventories

Uang muka 177.685.524 10 144.944.397 Advances

Beban dibayar dimuka 85.299.151 11 74.384.913 Prepaid expenses

Pajak dibayar dimuka 590.130.483 12 594.222.863 Prepaid taxes

Aset lancar lainnya 8.486.870 8.486.870 Other current assets

Jumlah Aset Lancar 10.932.717.526 10.373.158.827 Total Current Assets

ASET TIDAK LANCAR NON-CURRENT ASSETS

Aset pajak tangguhan 854.794.055 39 752.492.323 Deferred tax assets

Investasi pada entitas asosiasi 88.686.763 13 93.984.643 Investments in associates

Properti investasi 156.908.814 14 160.694.045 Investment properties

Aset tetap, setelah dikurangi Fixed assets, net of accumulated

akumulasi penyusutan dan deplesi depreciation and depletion of

sebesar Rp13.980.926.836 Rp13,978,005,506 at

pada 31 Maret 2017 March 31, 2017

dan Rp13.594.170.672 and Rp13,594,170,672 at

pada 31 Desember 2016 31.157.607.053 15 30.846.750.207 December 31, 2016

Beban tangguhan 113.006.143 16 117.653.721 Deferred charges

Aset takberwujud 1.316.866.782 17 1.355.079.570 Intangible assets

Uang muka investasi 128.537.226 18 179.217.050 Advances for investment

Aset lain-lain 346.416.544 19 347.865.596 Other assets

Jumlah Aset Tidak Lancar 34.162.823.380 33.853.737.155 Total Non-Current Assets

31 Maret / 31 Desember /

March 31, December 31,

2017 Catatan/ 2016

(Unaudited) Notes (Audited)

LIABILITAS DAN EKUITAS LIABILITIES AND EQUITY

LIABILITAS JANGKA PENDEK CURRENT LIABILITIES

Pinjaman jangka pendek 1.007.719.520 20,42 819.024.714 Short-term borrowings

Utang usaha Trade payables

- Pihak ketiga 3.298.683.192 22 3.249.070.457 - Third parties

- Pihak berelasi 732.694.131 22,42 828.686.605 - Related parties

Utang lain-lain Other payables

- Pihak ketiga 223.416.104 23 266.382.815 - Third parties

- Pihak berelasi 28.733.244 23,42 38.868.025 - Related parties

Beban yang masih harus dibayar 647.258.972 24 677.378.424 Accrued expenses

Utang pajak 314.961.582 25 363.827.010 Taxes payable

Short-term employee benefits

Liabilitas imbalan kerja jangka pendek 1.114.976.299 41 867.466.489 liabilities

Utang dividen 1.808.638.483 30 - Dividens payable

Uang muka penjualan 76.464.033 26 49.466.442 Sales advances

Liabilitas jangka panjang yang jatuh Current maturities of

tempo dalam satu tahun long-term liabilities

- Pinjaman bank 756.019.541 20,42 866.543.711 - Bank loans

- Liabilitas sewa pembiayaan 124.316.719 21 124.958.736 - Finance lease liabilities

Jumlah Liabilitas Jangka Pendek 10.133.881.820 8.151.673.428 Total Current Liabilities

LIABILITAS JANGKA PANJANG NON-CURRENT LIABILITIES

Liabilitas pajak tangguhan 43.955.968 39 38.650.880 Deferred tax liabilities

Long-term employee benefits

Liabilitas imbalan kerja jangka panjang 869.838.844 41 823.029.982 liabilities

Liabilitas jangka panjang

setelah dikurangi yang jatuh tempo Long-term liabilities

dalam satu tahun net of current maturities

- Pinjaman bank 3.980.954.753 20,42 3.988.450.846 - Bank loans

- Liabilitas sewa pembiayaan 430.081.158 21 461.397.183 - Finance lease liabilities

Provisi jangka panjang 185.874.021 27 182.760.693 Long-term provision

Liabilitas jangka panjang lainnya 6.641.650 23 6.541.513 Other non-current liabilities

Jumlah Liabilitas Jangka Panjang 5.517.346.394 5.500.831.097 Total Non-Current Liabilities

Jumlah Liabilitas 15.651.228.214 13.652.504.525 Total Liabilities

EKUITAS EQUITY

Ekuitas yang dapat diatribusikan Equity attributable to equity

kepada pemilik entitas induk: holders of the parent entity:

Modal saham - nilai nominal Share capital - par value of

Rp100 (angka penuh) per saham Rp100 (full amount) per share

Modal dasar - 20.000.000.000 saham Authorized - 20,000,000,000 shares

Modal ditempatkan dan disetor Issued and fully paid

penuh - 5.931.520.000 saham 593.152.000 28 593.152.000 5,931,520,000 shares

Tambahan modal disetor 1.458.257.900 29 1.458.257.900 Additional paid-in capital

Selisih transaksi ekuitas dengan pihak Difference in value of equity transaction

non-pengendali 28.928.287 48 28.928.287 with non-controlling interest

Komponen ekuitas lainnya 375.687.515 426.872.903 Other components of equity

Saldo laba Retained earnings

- Ditentukan penggunaannya 253.338.000 253.338.000 - Appropriated

- Belum ditentukan penggunaannya 25.212.529.951 26.274.646.670 - Unappropriated

Jumlah ekuitas yang dapat

diatribusikan kepada Total equity attributable to the

pemilik entitas induk 27.921.893.653 29.035.195.760 owners of the parent entity

Kepentingan nonpengendali 1.522.419.039 31 1.539.195.697 Non-controlling interests

Jumlah Ekuitas 29.444.312.692 30.574.391.457 Total Equity

31 Maret / 31 Maret /

March 31, Catatan/ March 31,

2017 Notes 2016

(Unaudited) Notes (Unaudited)

PENDAPATAN 6.398.629.233 32 6.020.920.214 REVENUE

BEBAN POKOK PENDAPATAN (4.455.738.730) 33 (3.595.862.715) COST OF REVENUE

LABA BRUTO 1.942.890.503 2.425.057.499 GROSS PROFIT

Beban penjualan (516.574.383) 34 (685.335.947) Selling expenses

Beban umum dan administrasi (530.346.265) 35 (506.081.382) General and administration expenses

Penghasilan operasi lainnya 47.963.443 36 23.423.273 Other operating income

Penghasilan keuangan 32.521.763 37 61.236.517 Finance income

Beban keuangan (95.611.076) 37 (85.724.426) Finance costs

Bagian laba bersih entitas asosiasi (5.297.880) 13 10.453.045 Share in net profit in associates

LABA SEBELUM PAJAK

PENGHASILAN 875.546.105 1.243.028.579 PROFIT BEFORE INCOME TAX

Beban pajak penghasilan (124.884.216) 39 (192.956.759) Income tax expense

LABA BERSIH PERIODE BERJALAN 750.661.889 1.050.071.820 NET PROFIT FOR THE PERIOD

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 atas Remeasurements of defined

liabilitas imbalan pasti (22.356.830) 38 (8.710.730) benefit obligation

Beban pajak penghasilan 6.388.438 38,39 (645.682) Income tax expense

Pengukuran kembali atas liabilitas Remeasurements of defined

imbalan pasti - setelah pajak (15.968.392) (9.356.412) benefit obligation - net of tax

Pos-pos yang akan Items that may be reclassified

direklasifikasi ke laba rugi: subsequently to profit or loss:

Net changes in fair value of

Perubahan neto nilai wajar investasi available-for-sale

efek tersedia untuk dijual - 38 - investments in securities

Mutasi neto lindung nilai arus kas 141.288 38 (7.613.705) Net movement on cash flow hedges

Exchange difference from

Selisih kurs dari penjabaran translation of foreign

kegiatan usaha luar negeri (50.511.834) 38 (174.406.259) operation

Jumlah penghasilan komprehensif lain Total other comprehensive income

periode berjalan - setelah pajak (66.338.938) (191.376.376) for the period - net of tax

JUMLAH LABA KOMPREHENSIF TOTAL COMPREHENSIVE INCOME

PERIODE BERJALAN 684.322.951 858.695.444 FOR THE PERIOD

LABA YANG DAPAT

DIATRIBUSIKAN KEPADA: PROFIT ATTRIBUTABLE TO:

Pemilik entitas induk 746.521.764 40 1.033.594.985 Owners of parent entity

Kepentingan nonpengendali 4.140.125 31 16.476.835 Non-controlling interests

750.661.889

1.050.071.820

JUMLAH LABA KOMPREHENSIF

YANG DAPAT DIATRIBUSIKAN TOTAL COMPREHENSIVE INCOME

KEPADA: ATTRIBUTABLE TO:

Pemilik entitas induk 695.336.376 895.243.558 Owners of parent entity

Kepentingan nonpengendali (11.013.425) (36.548.114) Non-controlling interests

684.322.951

858.695.444

Laba per saham dasar dan dilusian Basic and diluted earnings per share

(dinyatakan dalam angka penuh (expressed in Rupiah full

Selisih transaksi ekuitas

dengan pihak Keuntungan dan Selisih kurs Ekuitas yang

non-pengendali/ kerugian aktuarial dari penjabaran dapat diatribusikan Difference in value atas kewajiban Cadangan kegiatan usaha kepada pemilik

Tambahan of equity imbalan pasti/ lindung nilai luar negeri/ Belum entitas induk/ Kepentingan

modal disetor/ transaction with Actuarial gains arus kas/ Exchange difference Ditentukan ditentukan equity attributable nonpengendali/ Jumlah Catatan/ Modal saham/ Additional non-controlling or losses of Cash flow from translation of penggunaannya/ penggunaannya/ to owners of Non-Controlling ekuitas/ Notes Capital stock paid-in capital interest defined benefits hedging reserve foreign operation Appropriated Unappropriated the parent entity Interests Total equity

Saldo per 1 Januari 2016 593.152.000 1.458.257.900 - 54.460.231 (1.101.102) 499.796.137 253.338.000 23.561.638.624 26.419.541.790 1.021.256.611 27.440.798.401 Balance as of January 1, 2016 Laba tahun berjalan - - - - - - - 1.033.594.985 1.033.594.985 16.476.835 1.050.071.820 Profit for the period Komponen ekuitas lainnya 38 - - - (9.356.411) (7.613.705) (122.084.192) - - (139.054.308) (52.321.796) (191.376.104) Other components of equity

Bagian ekuitas kepentingan non-pengendali Share of non-controlling interests in equity of

atas pendirian entitas anak - - - - - - - - - 19.590.000 19.590.000 newly established subsidiaries Dividen 30 - - - - - - - - - (5.448.797) (5.448.797) Dividends

Saldo per 31 Maret 2016 593.152.000 1.458.257.900 - 45.103.820 (8.714.807) 377.711.945 253.338.000 24.595.233.609 27.314.082.467 999.552.853 28.313.635.320 Balance as of March 31, 2016

Saldo per 1 Januari 2017 593.152.000 1.458.257.900 28.928.287 21.936.730 56.801 404.879.372 253.338.000 26.274.646.670 29.035.195.760 1.539.195.697 30.574.391.457 Balance as of January 1, 2017 Laba tahun berjalan - - - - - - - 746.521.764 746.521.764 4.140.125 750.661.889 Profit for the period

Perubahan ekuitas sehubungan Change in equity in relation

akuisisi entitas anak - - - - - - - - - - - to acquisition of subsidiary Komponen ekuitas lainnya 38 - - - (15.968.392) 141.288 (35.358.284) - - (51.185.388) (15.153.550) (66.338.938) Other components of equity

Bagian ekuitas kepentingan non-pengendali Share of non-controlling interests in equity of

atas pendirian dan akuisisi entitas anak - - - - - - - - - - - newly established and acquired subsidiaries Dividen 30 - - - - - - - (1.808.638.483) (1.808.638.483) (5.763.233) (1.814.401.716) Dividends

Saldo per 31 Maret 2017 593.152.000 1.458.257.900 28.928.287 5.968.338 198.089 369.521.088 253.338.000 25.212.529.951 27.921.893.653 1.522.419.039 29.444.312.692 Balance as of March 31, 2017 Dapat diatribusikan kepada pemilik entitas induk/

Attributable to equity holders of the parent entity

Other components of equity

Komponen ekuitas lainnya/ Saldo laba/ Retained earnings

31 Maret / 31 Maret /

March 31, March 31,

2017 2016

(Unaudited) (Unaudited)

CASH FLOWS FROM

ARUS KAS DARI AKTIVITAS OPERASI OPERATING ACTIVITIES

Penerimaan dari pelanggan 6.361.839.006 6.565.202.958 Receipts from customers Pembayaran kepada pemasok (4.854.349.504) (4.501.236.805) Payments to suppliers Pembayaran kepada karyawan (469.792.287) (481.749.020) Payments to employees Penghasilan bunga yang diterima 32.521.763 61.236.517 Interest income received

Penarikan kas dan setara kas Withdrawal of restricted

yang dibatasi penggunaannya (4.076.378) 9.996.395 cash and cash equivalents Pembayaran pajak penghasilan (262.141.942) (264.856.048) Payment of income taxes

Pembayaran bunga dan Payment of interest and

beban keuangan (95.611.076) (94.066.379) finance charges Penerimaan lainnya - neto 43.509.688 9.490.625 Others receipts - net

Arus Kas Neto Yang Diperoleh Dari Net Cash Flows Provided by

Aktivitas Operasi 751.899.270 1.304.018.243 Operating Activities CASH FLOWS FROM

ARUS KAS DARI AKTIVITAS INVESTASI INVESTING ACTIVITIES

Aset tetap: Fixed Assets:

Pembelian aset tetap (690.253.927) (830.452.091) Acquisition of fixed assets Hasil penjualan aset tetap 191.385 - Proceeds from sales of fixed assets Akuisisi entitas asosiasi (750.000) - Acquisition of an associate

Penerimaan dari saham entitas anak Proceeds from issuance of shares

yang dikeluarkan kepada kepentingan of subsidiary to a

nonpengendali - 19.590.000 non-controlling interest Uang muka investasi - (410.889.615) Advances for investment Penambahan beban tangguhan - (586.500) Additions to deferred charges Penambahan aset takberwujud (109.667) - Additions to intangible assets

Pencairan investasi jangka pendek - neto 1.800.000 - Withdrawal of short-term investments - net

Arus Kas Neto Yang Digunakan Net Cash Flows Used in

Untuk Aktivitas Investasi (689.122.209) (1.222.338.206) Investing Activities CASH FLOWS FROM

ARUS KAS DARI AKTIVITAS PENDANAAN FINANCING ACTIVITIES

Pembayaran kembali pinjaman Repayment of long-term

jangka panjang (367.584.768) (153.248.733) borrowings

Pembayaran kembali pinjaman Repayment of short-term

jangka pendek (413.821.087) - borrowings

Penerimaan pinjaman jangka pendek 597.441.977 - Proceeds from short-term loans Penerimaan pinjaman jangka panjang 200.779.350 176.015.821 Proceeds from long-term loans Pembayaran liabilitas sewa pembiayaan (34.757.042) (23.680.788) Payment of finance lease liabilities

Pembayaran dividen: Payment of dividends:

Kepentingan nonpengendali (5.763.233) (5.448.797) Non-controlling interest

Arus Kas Neto Yang Digunakan Net Cash Flows Used in

Untuk Aktivitas Pendanaan (23.704.803) (6.362.497) Financing Activities

Penurunan neto kas dan setara kas 39.072.258 75.317.540 Net decrease in cash and cash equivalents Cash and cash equivalents

Kas dan setara kas pada awal tahun 2.834.444.371 3.964.018.180 at the beginning of the year

KAS DAN SETARA KAS CASH AND CASH EQUIVALENTS

PADA AKHIR TAHUN 2.873.516.629 4.039.335.720 AT THE END OF THE YEAR

Komponen kas setara kas terdiri dari: Components of cash and cash equivalents: Kas 29.836.213 5.638.806 Cash on hand

Bank 1.404.932.609 589.735.235 Cash in banks Deposito berjangka 1.438.747.807 3.443.961.679 Time deposits

2.873.516.629

1. UMUM 1. GENERAL

a. Pendirian dan Informasi Umum a. Establishment and General Information

PT Semen Indonesia (Persero) Tbk

(“Perseroan“) didirikan dengan nama NV Pabrik

Semen Gresik pada tanggal 25 Maret 1953 dengan Akta Notaris Raden Mr. Soewandi No. 41. Pada tanggal 17 April 1961, NV Pabrik Semen Gresik dijadikan Perusahaan Negara (Persero) berdasarkan Peraturan Pemerintah No. 132 tahun 1961, kemudian berubah menjadi PT Semen Gresik (Persero) berdasarkan Akta Notaris J.N. Siregar, S.H. No.81 tanggal 24 Oktober 1969.

PT Semen Indonesia (Persero) Tbk (the “Company”) was established on March 25,

1953 as NV Pabrik Semen Gresik based on Notarial Deed No. 41 of Raden Mr. Soewandi. On April 17, 1961, NV Pabrik Semen Gresik has become a state enterprise (Persero) based on Government Regulation No. 132 year 1961, and subsequently became PT Semen Gresik (Persero) by virtue of Notarial Deed No.81 dated October 24, 1969 of J.N. Siregar, S.H.

Anggaran Dasar Perseroan telah mengalami beberapa kali perubahan dan yang terakhir antara lain mengenai perubahan Dewan Direksi berdasarkan Akta No. 68 tanggal 20 Mei 2016 yang dibuat dihadapan Leolin Jayayanti, S.H, Notaris di Jakarta. Perubahan ini telah dilaporkan kepada Menteri Hukum dan Hak Asasi Manusia Republik Indonesia.

The Company’s Articles of Association have been

amended several times, the most recent was concerning, among others, the change in the Board of Directors based on National Deed No. 122 dated May 16, 2016 of Leolin Jayayanti, SH, Notary in Jakarta. This amendment was reported to Ministry of Law and Human Rights of the Republic of Indonesia.

Ruang lingkup kegiatan usaha Perseroan

menurut Anggaran Dasar adalah: The scope of business activities of the Company in accordance with its Articles of Association includes:

a. Menjalankan usaha dalam bidang industri, khususnya dalam bidang industri persemenan;

b. Menjalankan usaha dalam bidang produksi, menambang dan/atau menggali dan/atau mengolah bahan-bahan mentah tertentu menjadi bahan-bahan pokok yang diperlukan dalam industri persemenan dan/atau industri lainnya. Mengolah bahan tersebut menjadi berbagai macam semen dan/atau menjadi hasil industri lainnya serta mengolah berbagai macam semen dan/atau hasil industri tersebut menjadi barang-barang jadi yang lebih bermanfaat;

c. Menjalankan usaha dalam bidang perdagangan, pemasaran dan distribusi berbagai macam industri persemenan serta hasil barang-barang hasil produksi lainnya yang menggunakan bahan baku semen atau bahan baku lainnya baik di dalam maupun di luar negeri.;

d. Menjalankan usaha dalam bidang pemberian jasa untuk industri persemenan dan / atau industri lainnya;

e. Memberikan jasa pengelolaan perusahaan dan jasa konsultasi manajemen kepada anak perusahaan;

f. Menjalankan usaha di bidang energi terbarukan maupun energi tidak terbarukan, melakukan eksplorasi, produksi, konversi energi, distribusi, dan pembangkit tenaga listrik;

g. Menjalankan pengelolaan limbah B3 (Limbah Bahan Berbahaya dan Beracun) berupa rangkaian kegiatan dan/atau

a. Conducting business in the field of cement industry;

b. Conducting business in the field of production, mining and/or digging and/or processing certain raw materials into main materials required in cement and/or other industries. Processing the material into various cement and/or other industrial products and processing various cement and/or industrial products into more useful items;

c. Conducting business in the field of trading, marketing and distribution of various cement industries as well as the products of other products using cement or other raw materials both inside and outside the country;

d. Conducting business in the field of providing services for other cement and/or other industrial industries;

e. Providing corporate management services and management consulting services to subsidiaries;

f. Conducting business in the field of renewable energy and non-renewable energy, conducting exploration, production, energy conversion, distribution, and power generation; g. Managing of B3 waste (Hazardous and

Toxic Waste) in the form of activities including reduction, storage, collection,

kegiatan-kegiatan yang mencakup reduksi, penyimpanan, pengumpulan, pengangkutan, pemanfaatan, pengolahan, dan/atau penimbunan limbah B3, termasuk penimbunan hasil pengolahan tersebut.

transportation, utilization, processing, and/or stockpiling of B3 waste, including the stockpiling of the result of the waste.

Lokasi pabrik semen Perseroan dan Entitas

Anak (“Grup“) berada di Gresik dan Tuban di

Jawa Timur, Indarung di Sumatera Barat, Pangkep di Sulawesi Selatan dan Quang Ninh di Vietnam. Hasil produksi Grup dipasarkan di dalam dan di luar negeri.

The Company and its subsidiaries (“the Group”)

cement plants are located in Gresik and Tuban in East Java, Indarung in West Sumatera, Pangkep in South Sulawesi and Quang Ninh in Vietnam. The Group's products are marketed domestically and internationally.

Perseroan berkedudukan dan berkantor pusat di Jl. Veteran, Gresik 61122, Jawa Timur. Perseroan memulai kegiatan komersialnya pada tanggal 7 Agustus 1957.

The Company’s head office is located at

Jl. Veteran, Gresik 61122, East Java. The Company commenced commercial operations on August 7, 1957.

Pemegang saham pengendali Perseroan adalah

Pemerintah Republik Indonesia. The Company's controlling shareholder is the Government of the Republic of Indonesia. Susunan Dewan Komisaris dan Direksi

Perseroan, Komite Audit, Kepala Internal Audit dan Sekretaris Perusahaan pada tanggal 31 Maret 2017 dan 2016 adalah sebagai berikut:

The members of the Company’s Board of

Commissioners and Directors, member of Audit Committee, Head of Internal Audit, and Corporate Secretary as at March 31, 2017 and 2016 were as follows:

31 Maret / 31 Maret /

March 31, March 31,

2017 2016

Dewan Komisaris Board of Commissioners

Komisaris Utama Sutiyoso Mahendra Siregar President Commissioner

Komisaris Hambra Achmad Jazidie Commissioner

Komisaris Astrea Primanto Bhakti Marwanto Harjowiryono Commissioner

Komisaris Sony Subrata Sony Subrata Commissioner

Komisaris Independen Wahyu Hidayat Wahyu Hidayat Commissioner

Komisaris Independen Djamari Chaniago Hadi Waluyo Independent Commissioner

Komisaris Independen Nasaruddin Umar Muchammad Zaidun Independent Commissioner

Direksi Directors

Direktur Utama Rizkan Chandra Suparni President Director

Direktur Ahyanizzaman Ahyanizzaman Director

Direktur Budi Siswoyo Rizkan Chandra Director

Direktur Darmawan Junaidi Amat Pria Darma Director

Direktur Aunur Rosyidi Aunur Rosyidi Director

Direktur Agung Yunanto Gatot Kustyadji Director

Direktur Johan Samudra Johan Samudra Director

Komite Audit Audit Committee

Ketua Djamari Chaniago Hadi Waluyo Chairman

Anggota Hambra Achmad Jazidie Member

Anggota Sahat Pardede Sahat Pardede Member

Anggota merangkap Sekretaris Elok Tresnaningsih Elok Tresnaningsih Member concurrently Secretary

Kepala Internal Audit Ginarko Isnubroto Ginarko Isnubroto Head of Internal Audit

Sekretaris Perusahaan Agung Wiharto Agung Wiharto Corporate Secretary

Personil manajemen kunci meliputi Dewan Komisaris dan Direksi Perseroan. Kompensasi imbalan kerja jangka pendek yang dibayarkan kepada personil manajemen kunci Perseroan untuk periode yang berakhir pada 31 Maret 2017 sebesar Rp4.642.454 (31 Maret 2016: Rp6.614.848). Tidak ada kompensasi dalam

Key management personnel are the Company’s

Board of Commissioners and Directors. Short-term compensation paid to the key management personnel of the Company for the period ended March 31, 2017 amounted to Rp4,642,454 (March 31, 2016: Rp6,614,848). There is no compensation of post-employment

bentuk imbalan pascakerja, imbalan kerja jangka panjang lainnya, pesangon pemutusan kontrak kerja dan pembayaran berbasis saham.

benefits, other long-term benefits, termination benefits, and share-based payment.

Pada tanggal 31 Maret 2017 dan 2016, Grup mempunyai masing-masing 7.080 dan 6.592 karyawan.

As of March 31, 2017 and 2016, the Group had 7,080 and 6,592 employees, respectively.

b. Entitas Anak b. Consolidated Subsidiaries

Kepemilikan saham Perseroan pada entitas

anak yang dikonsolidasi adalah sebagai berikut: The Company’s ownership interests in consolidated subsidiaries are as follows: Dimulainya

kegiatan komersial/

Jenis usaha/ 31 Maret/ 31 Desember/ Start of 31 Maret/ 31 Desember/ Entitas anak/ Domisili/ Nature of March 31, December 31, commercial March 31, December 31,

Subsidiaries Domicile business 2017 2016 operations 2017 2016

PT Semen Padang (“SP”) Indarung, Sumatera Barat/ Produsen semen/ 99,99% 99,99% 1913 9.170.428.937 9.210.952.435 West Sumatera Cement manufacturing

PT Sepatim Batamtama Batam, Riau Pengantongan semen dan distribusi/ 97,00% 97,00% 1994 34.843.384 33.050.558 (“SB”) 97% saham dimiliki SP/ Cement packing and distribution

97% shares owned by SP

PT Bima Sepaja Abadi (”BSA”) 80% saham Tanjung Priok, Pengantongan semen dan distribusi/ 80,00% 80,00% 1996 158.907.540 163.322.799 dimiliki SP/80% shares owned by SP Jakarta Cement packing and distribution

PT Semen Tonasa (“ST”) Pangkep, Sulawesi Selatan/ Produsen semen/ 99,99% 99,99% 1968 8.567.903.599 8.730.454.358 South Sulawesi Cement manufacturing

PT Semen Gresik (“SG”) Gresik, Jawa Timur/ Produksi semen/ 99,96% 99,96% - 5.183.944.907 4.814.349.323 East Java Cement manufacturing

PT United Tractors Semen Gresik (“UTSG”) Tuban, Jawa Timur/ Penambangan batu kapur dan tanah liat/ 55,00% 55,00% 1992 444.981.790 380.306.292 East Java Limestone and clay mining

PT Industri Kemasan Semen Gresik (“IKSG”Tuban, Jawa Timur/ Produsen kantong semen/ 60,00% 60,00% 1994 273.362.953 273.525.109 East Java Cement bag manufacturing

PT Kawasan Industri Gresik (“KIG”) Gresik, Jawa Timur/ Pengembangan kawasan industri/ 65,00% 65,00% 1991 336.706.472 341.708.176 East Java Industrial real estate

PT SGG Energi Prima (”SEP”) Gresik, Jawa Timur/ Pertambangan, perdagangan 97,00% 97,00% 2012 149.995.652 93.906.025 East Java dan pengangkutan Batubara/

Mining, trade and coal transportations

PT Semen Indonesia Beton (”SIB”) dahulu Jakarta Selatan, Produksi beton siap pakai/ 99,99% 99,99% 2012 1.401.824.039 1.421.925.523 bernama PT SGG Prima Beton ("SPB")/ DKI Jakarta Ready mix concrete

previously named PT SGG Prima Beton

PT Varia Usaha Beton ("VUB") Sidoarjo, Jawa Timur/ Produksi beton siap pakai/ 63,15% 36,67% 1991 603.643.029 594.612.752 50,90% saham dimiliki SIB dan East Java Ready mix concrete production

49,10% saham dimiliki SIL/ 50,90% shares owned by SIB and 49,10% shares owned by SIL

PT Krakatau Semen Indonesia ("KSI") Cilegon, Jawa Barat/ Pasir Blast Furnace Slag/ 99,48% 50,00% 2014 282.418.294 242.366.162 West Java Ground Granulated Blast

Furnance Slag (GGBFS)

PT Sinergi Informatika Semen Indonesia Jakarta Selatan, Sistem Informasi/ 100,00% 100,00% 2014 93.923.936 89.673.220 ("SISI") DKI Jakarta Information system

PT Semen Indonesia Aceh ("SIA") Aceh, Produksi semen/ 38,28% 38,28% 2016 477.947.406 466.951.438 Sumatera Cement manufacturing

PT Semen Indonesia International ("SII") Jakarta Selatan, Perdagangan jasa pelayanan, 100,00% 100,00% 2016 40.690.455 6.472.445 DKI Jakarta manajemen logistik, dan investasi

Thang Long Cement Joint Hanoi, Produksi semen/ 70,00% 70,00% 2008 2.803.998.301 2.951.778.700

Stock Company (”TLCC”) Vietnam Cement manufacturing

Thang Long Cement Joint Stock Company 2Hanoi, Produksi semen/ 69,57% 69,57% - 39.241.054 39.852.420 (”TLCC2”) 99,08% saham dimiliki TLCC/ Vietnam Cement manufacturing

99.08% shares owned by TLCC

An Phu Cement Joint Stock Company (”APCHanoi,” Produksi semen/ 69,93% 69,93% - 54.584.808 55.900.217 99,90% saham dimiliki TLCC/ Vietnam Cement manufacturing

99.90% shares owned by TLCC

PT Semen Kupang Indonesia (”SKI”) Kupang Produksi semen/ 99,48% 99,48% - 190.402.386 191.254.760

NTT Cement manufacturing

PT Semen Indonesia Logistik ("SIL") Gresik Jawa Timur/ Perdagangan, transportasi, Jasa bongkar 73,65% 73,65% 1974 1.923.692.153 1.753.895.831 dahulu bernama PT Varia Usaha ("VU")/ East Java muat dan konstruksi/Trade, Transporation,

previously named PT Varia Usaha and Construction

PT Waru Abadi ("WA") Gresik Jawa Timur/ Perdagangan/Trading 73,61% 73,61% 1989 293.586.318 270.622.006 East Java

PT Varia Usaha Bahari ("VUBA") Gresik Jawa Timur/ Jasa bongkar muat/ 73,65% 73,65% 1992 78.744.913 64.530.843 64,00% saham dimiliki SIL dan East Java Stevedoring services

36,00% saham dimiliki WA entitas anak SIL/

64,00% shares owned by SIL and 36,00% shares owned by WA the subsidiary of SIL

PT Varia Usaha Dharma Segara ("VUDS") Gresik Jawa Timur/ Jasa pengurusan transportasi/ 73,65% 73,65% 1995 38.543.892 43.594.380 48,00% saham dimiliki SIL dan East Java Freight forwarding

52,00% saham dimiliki WA entitas anak SIL/

48,00% shares owned by SIL and 52,00% shares owned by WA the subsidiary of SIL

PT Varia Usaha Lintas Segara ("VULS") Gresik Jawa Timur/ Jasa transportasi laut/ 73,65% 73,65% 1997 84.643.278 54.080.857 60,00% saham dimiliki SIL dan East Java Ocean freight

40,00% saham dimiliki VUBA entitas anak SIL/

60,00% shares owned by SIL and 40,00% shares owned by VUBA the subsidiary of SIL

Jumlah aset sebelum eliminasi/ Total assets before eliminations Persentase kepemilikan/

Pada tanggal 1 Juni 2016, berdasarkan Akta Notaris No. 12, Notaris Leolin Jayayanti, S.H., M.Kn., Perseroan mendirikan PT Semen Indonesia International (SII). Akta ini disahkan oleh Menteri Hukum dan Hak Asasi Manusia Republik Indonesia dalam surat keputusan No. AHU-0027320.AH.01.01.tahun 2016, tanggal 6 Juni 2016. Hingga 31 Maret 2017, SII belum beroperasi secara komersial.

On June 1, 2016, based on Notarial Deed No. 12, Notary of Leolin Jayayanti, S.H., M.Kn., the Company established PT Semen Indonesia International (SII). The deed was approved by Minister of Law and Human Rights of the Republic of Indonesia in his Decision Letter No. AHU-0027320.AH.01.01.tahun 2016, dated June 6, 2016. As of March 31, 2017, SII has not yet started its commercial operation.

Pada tanggal 17 Maret 2016, berdasarkan Akta Notaris No. 40, Notaris Leolin Jayayanti, S.H, Perseroan dan PT Samana Citra Agung (SCA) mendirikan Perusahaan dengan nama PT Semen Indonesia Aceh (SIA). Akta ini disahkan oleh Menteri Hukum dan Hak Asasi Manusia Republik Indonesia dalam surat keputusan No. AHU-0014511.AH.01.01.tahun 2016, tanggal 18 Maret 2016. Pada tanggal 31 Maret 2017, SIA belum beroperasi secara komersial.

On March 17, 2016, based on Notarial Deed No. 40, Notary of Leolin Jayayanti, S.H, the Company and PT Samana Citra Agung (SCA) established a Company, PT Semen Indonesia Aceh (SIA). The deed was approved by Minister of Law and Human Rights of the Republic of Indonesia in his decision letter No. AHU-0014511.AH.01.01.tahun 2016, dated March 18, 2016. As of March 31, 2017, SIA has not yet started its commercial operation.

Direksi Perseroan menilai apakah Grup memiliki pengendalian atas SIA berdasarkan kemampuan Grup untuk mengarahkan kegiatan yang relevan dari SIA secara sepihak. Dalam membuat pertimbangannya, Direksi mempertimbangkan surat kuasa dari SCA kepada Perseroan untuk melaksanakan kewenangan sebagai pemegang saham mayoritas dalam Rapat Umum Pemegang Saham SIA. Setelah penilaian, direksi menyimpulkan bahwa Grup memiliki hak suara yang cukup dominan untuk mengarahkan kegiatan yang relevan dari SIA dan karenanya Grup memiliki pengendalian atas SIA.

The directors of the Company assessed whether or not the Group has control over SIA based on the practical abilitiy of the Group to direct the relevant activities of SIA unilaterally. In making their judgment, the directors considered the letter of power of attorney from SCA to the Company in which to exercise power as majority shareholder in the General Meeting of Shareholder of SIA. After assessment, the directors concluded that the Group has a sufficiently dominant voting interest to direct the relevant activities of SIA.

Pada tanggal 19 Desember 2016 sesuai Keputusan Para Pemegang Saham Diluar Rapat Umum Pemegang Saham, para pemegang saham menyetujui penambahan modal saham ditempatkan di SIA menjadi 454.500 saham dengan nilai per lembar saham Rp1.000.000 dengan kepemilikan Perseroan adalah 173.990 saham atau sebanyak 38,28%.

On December 19, 2016, based on Decision of Shareholder outside General Meeting of Shareholder, the shareholders agreed to increase its investment in SIA to become 454,500 shares with par value per share of Rp1,000,000 with the ownership of the Company is 173,990 or by 38.28%.

Pada tanggal 7 September 2016, berdasarkan Akta Notaris No. 20, Notaris Fatimah Zakiyyah, S.Si, S.H,M.Kn, para pemegang saham SIB menyetujui penambahan modal dasar dan modal ditempatkan SIB dan menyetujui perubahan nama SIB semula PT SGG Prima Beton menjadi PT Semen Indonesia Beton. Akta ini dietujui oleh Menteri Hukum dan Hak Asasi Manusia Republik dalam surat keputusan No. AHU-0016229.AH.01.02 tahun 2016 tanggal 7 September 2016.

On September 17, 2016, based on Notarial Deed No. 20, Notary of Fatimah Zakiyyah, S.Si, S.H,M.Kn, the shareholders of the SIB agreed to increase its authorized and issued capital and change its name from PT SGG Prima Beton to become PT Semen Indonesia Beton (SIB). The deed was approved by Minister of Law and Human Rights of the Republic of Indonesia in his decision letter No. AHU-0016229.AH.01.02 tahun 2016, dated September 7, 2016.

Berdasarkan Akta Notaris No. 131 tanggal 29 Juni 2016, Notaris Dr. Slamet Wahyudi, S.H., M.Kn, VUB menerbitkan saham portepel sejumlah 2.900.000 lembar saham dengan nilai Rp60.972.500 dan dibeli seluruhnya oleh SIB. Akta ini disahkan oleh Menteri Hukum dan Hak Asasi Manusia Republik Indonesia dalam surat keputusan No. AHU-AH.01.03-0068600, tanggal 3 Agustus 2016.

Based on Notarial Deed No. 131 dated June 29, 2016, Notary Dr. Slamet Wahyudi, S.H., M.Kn VUB issued stock portfolio of 2,900,000 shares with a value Rp60,972,500 which were purchased entirely by SIB. The deed was approved by Minister of Law and Human Rights of the Republic of Indonesia in its decision letter No. AHU-AH.01.03-0068600, dated August 3, 2016.

Berdasarkan Akta Notaris No. 2 tanggal 1 Nopember 2016, Notaris Fatimah Zakkiyah S.Si, S.H,M.Kn, the shareholders of PT Semen Indonesia Logistik (SIL) setuju terhadap penjualan 349.350 lembar saham DPSG kepada Perseroan dengan persentase kepemilikan sebesar 48,7%, sehingga persentase kepemilikan Perseroan pada SIL meningkat menjadi 73,65% pada tanggal 31 Desember 2016. Akta ini disetujui oleh Menteri Hukum dan Hak Asasi Manusia Republik Indonesia dalam surat keputusan No. AHU-AH.01.03-01-0103732 tanggal 30 Nopember 2016.

Based on Notarial Deed No. 2 dated November 1, 2016, Notary Fatimah Zakkiyah S.Si, S.H,M.Kn, the shareholders of PT Semen Indonesia Logistik (SIL) agreed to sell the ownership of 349,350 shares of DPSG to the Company with 48.7% percentage ownership, thus, increasing the Company’s percentage of ownership to SIL of 73.65% as of December 31, 2016. The deed was approved by Minister of Law and Human Rights of the Republic Indonesia in its decision letter No AHU-AH.01.03-01-0103732 dated November 30, 2016.

PT Semen Kupang Indonesia (SKI) didirikan berdasarkan Akta Notaris No. 170 tanggal 28 Januari 2016, Notaris Verawati Ivoney Tefa, S.H, M.K.. Akta ini disetujui oleh Menteri Hukum dan Hak Asasi Manusia Republik Indonesia dalam surat keputusan No. AHU-0005184.AH.01.01.tahun 2016, tanggal 28 Januari 2016. Hingga 31 Maret 2017, SKI belum beroperasi secara komersial.

PT Semen Kupang Indonesia (SKI) established based on Notarial Deed No. 170 dated January 28, 2016, Notary of Verawati Ivoney Tefa, S.H, M.K.. The deed was approved by Minister of Law and Human Rights of the Republic of Indonesia in his Decision Letter No. AHU-0005184.AH.01.01.tahun 2016, dated January 28, 2016. As of March 31, 2017, SKI has not yet started its commercial operation.

Pada tanggal 9 Desember 2016, berdasarkan Akta Notaris No. 30, Notaris Ny. Leolin Jayayanti, S.H., M.Kn., tentang perubahan anggaran dasar PT Semen Kupang Indonesia (SKI), para pemegang saham SKI menyetujui penambahan modal dasar SKI menjadi sebesar Rp500.000.000 terbagi atas 500.000 lembar saham dan menyetujui penambahan modal ditempatkan dan disetor SKI menjadi 192.000. Sehingga kepemilikan Perseroan pada SKI meningkat menjadi 99,48% pada tanggal 31 Desember 2016. Akta ini disetujui oleh Menteri Hukum dan Hak Asasi Manusia Republik Indonesia dalam surat keputusan No. AHU-0024987.AH.01.02 tanggal 23 Desember 2016.

On December 9, 2016, based on Notarial Deed No. 30, notary Notaris Ny. Leolin Jayayanti, S.H., M.Kn., regarding the change of Article of Association of PT Semen Kupang Indonesia (SKI), the shareholders of SKI agreed to increase its authorized capital becoming Rp500,000,000 which consists of 500,000 shares and agreed to increase its issued capital becoming 192,000, thus, increasing the

Company’s percentage ownership of SKI

become 99.48% as of December 31, 2016. This deed was approved by Minister of Law and Human Rights of the Republic of Indonesia in its decision letter No. AHU-0024987.AH.01.02 dated December 23, 2016.

Sesuai Keputusan Para Pemegang Saham Diluar Rapat Umum Pemegang Saham tanggal 19 Desember 2016 (Catatan 1b), Perseroan melakukan penambahan modal pada SIA pada tanggal 23 Desember 2016 dengan akta notaris tanggal 16 Januari 2017, No. 29, notaris Ny. Leolin Jayayanti, S.H., Akta tersebut telah diterima pemberitahuannya oleh Menteri Hukum dan Hak Asasi Manusia Republik Indonesia pada tanggal 31 Januari 2017.

Based on Decision of Shareholder outside General Meeting of Shareholders dated on December 19, 2016 (Note 1b), the Company increased the issued capital in SIA on December 23, 2016 with notarial deed No. 29 dated January 16, 2017, notary Ny. Leolin Jayayanti, S.H.. The Deed has been notified to and acknowledged by Minister of Law and Human Rights of the Republic of Indonesia on January 31, 2017.

Pada tanggal 16 Desember 2016, Perseroan dan entitas anak, SG menandatangani Perjanjian

Kerjasama Operasi (“KSO”) dalam rangka

operasi bersama pabrik semen beserta fasilitas pendukung persemenan. Perjanjian ini efektif berlaku sejak tanggal 1 Januari 2017, dengan tujuan terbatas untuk melaksanakan kegiatan operasional bersama atas pabrik semen serta pemasaran dan penjualan produk berdasarkan Perjanjian KSO. Berdasarkan perjanjian, Objek KSO meliputi didalamnya mesin pabrik semen beserta fasilitas pendukungnya, persediaan barang jadi dan barang dalam proses, peralatan transportasi dan lain sebagainya yang digunakan dalam kelangsungan operasional KSO.

On December 16, 2016, the Company and its subsidiary, SG signed a Joint Operation Agreement ( "KSO") in the context of joint operations on the cement plant and cement production supporting facilities. The effective date of this agreement is January 1, 2017, with the limited purpose of conducting joint operations on cement plants as well as marketing and sales of products under the KSO Agreement. Under the agreement, KSO Object include therein cement factory machinery and its supporting facilities, finished goods and work in progress inventories, transportation equipment and other items used for operational sustainability of KSO.

Berdasarkan Akta Notaris No. 4 tanggal 16 Januari 2017, Notaris Widatul Millah, S.H., PT Megah Sejahtera Bersama (MSB) menerbitkan 7.500 lembar saham dengan nilai Rp750.000, yang dibeli seluruhnya oleh WA, entitas anak dari VU. Akta ini disahkan oleh Menteri Hukum dan Hak Asasi Manusia Republik Indonesia

dalam Surat Keputusan

No. AHU-0002702.AH.01.02 tahun 2017. Atas pembelian ini, WA meningkatkan kepemilikannya sebesar 36% sehingga jumlah kepemilikan MSB menjadi 52%, yang memberikan pengendalian atas MSB.

Based on Notarial Deed No. 4 dated January 16, 2017, Notary Widatul Millah, S.H., PT Megah Sejahtera Bersama (MSB) issued 7,500 shares with a value of Rp750,000, which were acquired entirely by WA, a subsidiary of VU. The deed was approved by the Minister of Law and Human Rights of the Republic of Indonesia in its Decision Letter No. AHU-0002702.AH.01.02 tahun 2017. Due to this acquisition, WA increased its voting interest by 36%, hence, its ownership in MSB is increased to 52%, which provided control over MSB.

Pada tanggal 13 Februari 2017, berdasarkan Akta Notaris No. 11, Notaris Widatul Millah, SH, para pemegang saham SIL menyetujui perubahan nama SIL semula PT Varia Usaha menjadi PT Semen Indonesia Logistik (SIL). Akta ini disetujui oleh Menteri Hukum dan Hak Asasi Manusia Republik Indonesia dalam surat keputusan No. AHU-AH.01.03-0062273 tahun 2017 tanggal 13 Februari 2017.

On February 13, 2017, based on Notarial Deed No. 11, Notary of Widatul Millah, SH, the shareholders of the SIL agreed to change its name from PT Varia Usaha to become PT Semen Indonesia Logistik (SIL). The deed was approved by Minister of Law and Human Rights of the Republic of Indonesia in his decision letter No. AH.01.03-0062273 tahun 2017, dated February 13, 2017.

Berdasarkan Akta Notaris No. 4 tanggal 16 Januari 2017, Notaris Widatul Millah, S.H., PT Megah Sejahtera Bersama menerbitkan saham portepel sejumlah 7.500 lembar saham dan dibeli seluruhnya oleh WA. Akta ini disahkan oleh Menteri Hukum dan Hak Asasi Manusia Republik Indonesia dalam surat keputusan No. AHU-AH.01.03-0043715, tanggal 1 Februari 2017.

Based on Notarial Deed No. 4 dated January 16, 2016, Notary Widatul Millah, S.H., PT Megah Sejahtera Bersama issued stock portfolio of 7,500 shares which were purchased entirely by WA. The deed was approved by Minister of Law and Human Rights of the Republic of Indonesia in its decision letter No. AHU-AH.01.03-0043715, dated February 1, 2017.

c. Penawaran Umum Efek Perseroan c. Public Offering of Shares of the Company

Perseroan mendapat persetujuan melalui Keputusan Menteri Keuangan No. 859/KMK.01/1987 tanggal 23 Desember 1987, juncto Keputusan Menteri Keuangan No. 1548/KMK.013/1990 tanggal 4 Desember 1990 untuk menawarkan saham kepada masyarakat. Berdasarkan izin Menteri Keuangan cq Ketua Badan Pengawas Pasar Modal dan

Lembaga Keuangan (“BAPEPAM-LK”) No.

S-622.PM/1991 tanggal 17 Mei 1991 Perseroan melakukan Penawaran Umum Perdana kepada masyarakat atas 40.000.000 saham dengan

The Company obtained the approval of the Minister of Finance in his decision No. 859/KMK.01/1987 dated December 23, 1987, as amended by Decree No. 1548/KMK.013/1990 dated December 4, 1990, to offer its shares to the public. Based on the approval of the Minister of Finance cq Head of Capital Market and Financial Institutions Supervisory Agency ("BAPEPAM-LK") No.S-622.PM/1991 dated May 17, 1991, the Company conducted an Initial Public Offering of 40,000,000 shares with nominal amount of

nominal per saham Rp1.000 (angka penuh) dengan harga perdana per saham sebesar Rp7.000 (angka penuh). Pada tanggal 4 Juli 1991, BAPEPAM-LK menyetujui pencatatan saham sebanyak 70.000.000 saham di Bursa Efek Jakarta dan Bursa Efek Surabaya (sekarang bergabung menjadi Bursa Efek Indonesia).

Rp1,000 (full amount) and offering price of Rp7,000 (full amount) per share. On July 4, 1991, BAPEPAM-LK approved the listing of

70,000,000 of the Company’s shares on the

Jakarta Stock Exchange and Surabaya Stock Exchange (currently merged as the Indonesia Stock Exchange).

Pada tanggal 30 Mei 1995, Bursa Efek Indonesia menyetujui pencatatan tambahan 78.288.000 saham Perseroan. Pada tanggal 20 Juli 1995, BAPEPAM-LK menyetujui Penawaran Umum Terbatas sejumlah 444.864.000 saham biasa dengan dasar tiga saham baru untuk setiap saham yang beredar.

On May 30, 1995, the Indonesia Stock Exchange approved the additional listing of

78,288,000 of the Company’s shares. On

July 20, 1995, BAPEPAM-LK agreed to a rights issue of 444,864,000 common shares on a three to one basis.

Pada tanggal 7 Agustus 2007, Perseroan telah melakukan pemecahan saham dengan perbandingan 1:10. Jumlah lembar saham Perseroan yang beredar setelah pemecahan saham tersebut menjadi sebesar 5.931.520.000 lembar saham dengan harga pasar saham awal setelah pelaksanaan pemecahan saham tersebut adalah Rp5.000 (Rupiah penuh).

On August 7, 2007 the Company executed a stock split with a ratio of 1:10. Total issued shares after the stock split became 5,931,520,000 shares with an opening share price after exercising the stock split of Rp5,000 (full Rupiah amount).

Pada tanggal 31 Maret 2017, seluruh saham Perseroan atau sejumlah 5.931.520.000 lembar saham telah dicatatkan pada Bursa Efek Indonesia.

As of March 31, 2017, all of the Company’s

5,931,520,000 outstanding shares are listed on the Indonesia Stock Exchange.

2. PENERAPAN PERNYATAAN STANDAR

AKUNTANSI KEUANGAN (“PSAK”) BARU DAN REVISI PSAK SERTA INTERPRETASI STÁNDAR AKUNTANSI KEUANGAN (“ISAK”)

2. ADOPTION OF NEW AND REVISED

STATEMENTS OF FINANCIAL ACCOUNTING STANDARDS (“PSAK”) AND INTERPRETATION OF FINANCIAL ACCOUNTING STANDARDS (“ISAK”)

a. Standar yang Berlaku Efektif pada Tahun

Berjalan a. Effective Standards in the Current Year

Dalam tahun berjalan, Grup telah menerapkan standar baru, sejumlah amandemen dan interpretasi PSAK yang dikeluarkan oleh Dewan Standar Akuntansi Keuangan dari Ikatan Akuntan Indonesia yang relevan dengan operasinya dan efektif untuk periode akuntansi yang dimulai pada 1 Januari 2016. Amandemen PSAK 5 Segmen Operasi (i), mensyaratkan entitas untuk mengungkapkan pertimbangan yang dibuat oleh manajemen dalam menerapkan kriteria penggabungan segmen operasi, termasuk deskripsi singkat tentang segmen operasi yang telah digabungkan dan indikator ekonomik yang telah dinilai dalam menentukan bahwa segmen operasi yang digabungkan memiliki karakteristik ekonomik yang serupa; dan (ii) mengklarifikasi bahwa rekonsiliasi total aset segmen dilaporkan terhadap aset entitas hanya diungkapkan jika aset segmen secara regular disediakan kepada pengambil keputusan operasional. Grup menggabungkan beberapa segmen operasi menjadi satu segmen operasi tunggal dan membuat pengungkapan yang disyaratkan dalam Catatan 43 sesuai dengan amandemen.

In the current year, the Group has applied a new standard, a number of amendments, and an interpretation to PSAK issued by the Financial Accounting Standard Board of the Indonesian Institute of Accountants that are relevant to its operations and effective for accounting period beginning on January 1, 2016. The amendments to PSAK 5 Operating Segments (i) require an entity to disclose the judgements made by management in applying the aggregation criteria to operating segments, including a brief description of the operating segments aggregated and the economic indicators assessed in determining whether the operating

segments have “similar economic

characteristics”; and (ii) clarify that a

reconciliation of the total of the reportable

segments’ assets to the entity’s assets should

only be provided if segment assets are regularly provided to the chief operating decision-maker. The Group has aggregated several operating segments into a single operating segment and made the required disclosures in Note 43 in accordance with the amendments.

Penerapan amandemen dan interpretasi standar berikut tidak memiliki pengaruh signifikan atas pengungkapan atau jumlah yang dicatat di dalam laporan keuangan konsolidasian pada tahun berjalan dan tahun sebelumnya:

The appllication of the following amendments, and intepretation to standards have not resulted to material impact to disclosures or on the amounts recognized in the current and prior year consolidated financial statements:

 Amandemen PSAK 4: Laporan Keuangan

Tersendiri   Amendments to PSAK 4: Separate Financial Statements

 Amandemen PSAK 7: Pengungkapan

Pihak-pihak Berelasi   Amendments to PSAK 7: Related Party Disclosures

 Amandemen PSAK 15: Investasi pada Entitas

Asosiasi dan Ventura Bersama   Amendments to PSAK 15: Investment in Associates and Joint Venture

 Amandemen PSAK 16: Aset Tetap _{ } Amendments to PSAK 16: Property, Plant and Equipment

 Amandemen PSAK 19: Aset Takberwujud

 Amandemen PSAK 22: Kombinasi Bisnis  

Amendments to PSAK 19: Intangible Assets

 Amendments to PSAK 22: Business combinations

 Amandemen PSAK 24: Imbalan Kerja   Amendments to PSAK 24: Employee Benefits

 Amandemen PSAK 65: Laporan Keuangan

Konsolidasian   Amendments to PSAK 65: Consolidated Financial Statements

 Amandemen PSAK 66: Pengaturan Bersama _{ } Amendments to PSAK 66: Joint Arrangements

 Amandemen PSAK 67: Pengungkapan

Kepentingan dalam Entitas Lain   Amendments to PSAK 67: Disclosure of Interest in Other Entities

 ISAK 30: Pungutan _ ISAK 30: Levies

b. Standar dan Interpretasi telah Diterbitkan tapi

Belum Diterapkan b. Standards and Interpretation in Issue Not Yet Adopted

Amandemen standar dan interpretasi berikut efektif untuk periode yang dimulai pada atau setelah 1 Januari 2017, dengan penerapan dini diperkenankan yaitu:

New standards, amendments and interpretation effective for periods beginning on or after January 1, 2017, with early application is permitted are the following:

 PSAK 1: Penyajian Laporan

Keuangan tentang Prakarsa Pengungkapan  PSAK Statements about Disclosure Initiative 1: Presentation of Financial

 ISAK 31: Interpretasi atas Ruang Lingkup

PSAK 13: Properti Investasi  ISAK 31: Scope Interpretation of PSAK 13: Investment Property Standar dan amandemen standar berikut efektif

untuk periode yang dimulai pada atau setelah tanggal 1 Januari 2018, dengan penerapan dini diperkenankan yaitu:

Standard and amendment to standard effective for periods beginning on or after January 1, 2018, with early application permitted are:

 Amandemen PSAK 16: Aset Tetap _ Amendments to PSAK 16: Property, Plant and Equipment

 PSAK 69: Agrikultur _ PSAK 69: Agriculture

Sampai dengan tanggal penerbitan laporan keuangan konsolidasian, manajemen sedang mengevaluasi dampak dari standar dan interpretasi terhadap laporan keuangan konsolidasian.

As of the issuance date of the consolidated financial statements, management is evaluating the effect of these standards and interpretations on the consolidated financial statements.

3. IKHTISAR KEBIJAKAN AKUNTANSI PENTING 3. SUMMARY OF SIGNIFICANT ACCOUNTING

POLICIES

a. Pernyataan Kepatuhan a. Statement of Compliance

Laporan keuangan konsolidasian ini telah disusun dan disajikan sesuai dengan Standar Akuntansi Keuangan di Indonesia, yang mencakup pernyataan dan interpretasinya yang dikeluarkan oleh Dewan Standar Akuntansi Keuangan - Ikatan Akuntan Indonesia dan peraturan-peraturan serta pedoman dan penyajian dan pengungkapan laporan keuangan yang diterbitkan oleh Otoritas Jasa Keuangan (OJK).

The consolidated financial statements have been prepared and presented in accordance with Indonesian Financial Accounting Standards, which comprise the statements and interpretation issued by the Financial Accounting Standard Board of the Indonesian Institute of Accountants and the regulations and the guidelines on financial statements and disclosures issued by Financial Services Authority (OJK).

b. Dasar Penyusunan b. Basis of Preparation

Laporan keuangan konsolidasian, kecuali untuk laporan arus kas konsolidasian, disusun menggunakan dasar akrual. Dasar pengukurannya menggunakan biaya historis, kecuali beberapa akun tertentu yang menggunakan dasar pengukuran lain sebagaimana diuraikan dalam kebijakan akuntansi masing-masing akun tersebut. Mata uang penyajian yang digunakan untuk penyusunan laporan keuangan konsolidasian adalah mata uang Rupiah (Rp).

The consolidated financial statements, except for the consolidated statements of cash flows, are prepared under the accrual basis of accounting. The measurement basis used is historical cost, except for certain accounts which are measured on the bases described in the related accounting policies for those accounts. The presentation currency used in the preparation of the consolidated financial statements in the Indonesian Rupiah (Rp).

Biaya historis umumnya didasarkan pada nilai wajar dari imbalan yang diberikan dalam pertukaran barang dan jasa.

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

Nilai wajar adalah harga yang akan diterima untuk menjual suatu aset atau harga yang akan dibayar untuk mengalihkan suatu liabilitas dalam suatu transaksi teratur antara pelaku pasar pada tanggal pengukuran, terlepas apakah harga tersebut dapat diobservasi secara langsung atau diestimasi menggunakan teknik penilaian lain. Dalam mengestimasi nilai wajar aset atau liabilitas, Grup memperhitungkan karakteristik aset atau liabilitas, jika pelaku pasar memperhitungkan karakteristik tersebut ketika menentukan harga aset atau liabilitas pada tanggal pengukuran. Nilai wajar untuk tujuan pengukuran dan/atau pengungkapan dalam laporan keuangan konsolidasian ditentukan berdasarkan basis tersebut, kecuali untuk transaksi pembayaran berbasis saham dalam ruang lingkup PSAK 53, transaksi sewa dalam ruang lingkup PSAK 30, dan pengukuran yang memiliki beberapa kemiripan dengan nilai wajar tetapi bukan merupakan nilai wajar, seperti nilai realisasi neto dalam PSAK 14 dan nilai pakai dalam PSAK 48.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Group takes into account the characteristics the asset or a liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these consolidated financial statements is determined on such a basis, except for share-based payment transactions that are within the scope of PSAK 53, leasing transactions that are within the scope of PSAK 30, and measurements that have some similarities to fair value but are not fair value, such as net realizable value in PSAK 14 or value in use in PSAK 48.

Selain itu, untuk tujuan pelaporan keuangan, pengukuran nilai wajar dikategorikan ke Level 1, 2 atau 3 berdasarkan tingkat input untuk pengukuran nilai wajar yang dapat diobservasi dan signifikansi input pada pengukuran nilai wajar secara keseluruhan, yang digambarkan sebagai berikut:

In addition, for financial reporting purposes, fair value measurements are categorized into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

 Input Level 1 adalah harga kuotasian (tanpa penyesuaian) di pasar aktif untuk aset atau liabilitas yang identik yang dapat diakses entitas pada tanggal pengukuran;

 Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

 Input Level 2 adalah input, selain harga kuotasian yang termasuk dalam Level 1, yang dapat diobservasi untuk aset atau liabilitas, baik secara langsung maupun tidak langsung; dan

  Level 2 inputs are inputs, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly; and

 Input Level 3 adalah input yang tidak dapat

diobservasi untuk aset atau liabilitas.   Level 3 inputs are unobservable inputs for the asset or liability. Laporan arus kas konsolidasian disusun dengan

menggunakan metode langsung dengan mengelompokkan arus kas dalam aktivitas operasi, investasi, dan pendanaan.

The consolidated statement of cash flows is prepared using the direct method with classifications of cash flows into operating, investing, and financing activities.

c. Dasar Konsolidasian c. Basis of Consolidation

Laporan keuangan konsolidasian menggabungkan laporan keuangan Perseroan dan entitas yang dikendalikan oleh Perseroan (entitas anak). Pengendalian tercapai dimana Perseroan memiliki kekuasaan atas investee; eksposur atau hak atas imbal hasil variabel dari keterlibatannya dengan investee; dan kemampuan untuk menggunakan kekuasaannya atas investee untuk mempengaruhi jumlah imbal hasil investor.

The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries). Control is achieved where the Company has the power over the investee; is exposed, or has rights, to variable returns from its involvement with the investee; and has the ability to use its power to affect its returns.

Perseroan menilai kembali apakah entitas tersebut adalah investee jika fakta dan keadaan yang mengindikasikan adanya perubahan terhadap satu atau lebih dari tiga elemen pengendalian yang disebutkan di atas.

The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above.

Ketika Perseroan memiliki kurang dari hak suara mayoritas di-investee, ia memiliki kekuasaan atas investee ketika hak suara investor cukup untuk memberinya kemampuan praktis untuk mengarahkan aktivitas relevan secara sepihak. Perseroan mempertimbangkan seluruh fakta dan keadaan yang relevan dalam menilai apakah hak suara Perseroan cukup untuk memberikan Perseroan kekuasaan, termasuk (i) ukuran kepemilikan hak suara Perseroan relatif terhadap ukuran dan penyebaran kepemilikan pemilik hak suara lain; (ii) hak suara potensial yang dimiliki oleh Perseroan, pemegang suara lain atau pihak lain; (iii) hak yang timbul dari pengaturan kontraktual lain; dan (iv) setiap fakta dan keadaan tambahan apapun mengindikasikan bahwa Perseroan memiliki, atau tidak memiliki, kemampuan kini untuk mengarahkan aktivitas yang relevan pada saat keputusan perlu dibuat, termasuk pola suara pemilikan dalam RUPS sebelumnya.

When the Company has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Company considers all relevant facts and circumstances in assessing

whether or not the Company’s voting rights in

an investee are sufficient to give it power, including (i) the size of the Company’s holding

of voting rights relative to the size and dispersion of holding of the other vote holders; (ii) potential voting rights held by the Company, other vote holders or other parties; (iii) rights arising from other contractual arrangements; and (iv) any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous

shareholders’ meetings.

Konsolidasi entitas anak dimulai ketika Perseroan memperoleh pengendalian atas entitas anak dan akan dihentikan ketika Perseroan kehilangan pengendalian pada entitas anak. Secara khusus, pendapatan dan beban entitas anak diakuisisi atau dijual selama tahun berjalan termasuk dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian dari tanggal diperolehnya pengendalian Perseroan sampai tanggal ketika Perseroan berhenti untuk mengendalikan entitas anak.

Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company losing the control of the subsidiary. Specifically, income and expense of a subsidiary acquired or disposed of during the year are included in the consolidated statement of profit or loss and other comprehensive income from the date the Company gains control until the date when the Company ceases to control the subsidiary.

Laba rugi dan setiap komponen penghasilan komprehensif lain diatribusikan kepada pemilik entitas induk dan untuk kepentingan non-pengendali. Perseroan juga mengatribusikan total laba komprehensif entitas anak kepada pemilik entitas induk dan kepentingan non-pengendali meskipun hal tersebut mengakibatkan kepentingan non-pengendali memiliki saldo defisit.

Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the non-controlling interest. Total comprehensive income of subsidiaries is attributed to the owners of the Company and the non-controlling interest even if this results in the non-controlling interest having a deficit balance.

Pada tanggal 28 Juli, 2016, Penggugat mengajukan banding ke Pengadilan Tinggi Tata Usaha Surabaya. Pada tanggal 25 Oktober 2016 PTUN Surabaya telah memberikan keputusan No. 223 / B / 2016 / PT.TUN.SBY pada kasus banding yang menegaskan keputusan pengadilan tingkat pertama.

On July 28, 2016, the Plaintiffs filed an appeal to the Administrative High Court of Surabaya. On October 25, 2016 the Administrative Court of Surabaya has rendered their decision No. 223 / B / 2016 / PT.TUN.SBY on the appeal case which affirmed the decision of the court of first instance.

Pada 14 Desember 2016, Penggugat mengajukan banding untuk pemeriksaan kasasi dan menyerahkan Memori Kasasi ke Mahkamah Agung Republik Indonesia melalui Pengadilan Administratif Surabaya. Perseroan kemudian menerima Memori Kasasi pada tanggal 2016 dan kemudian mengajukan Kontra Memori Kasasi pada tanggal 30 Desember 2016. Sampai dengan laporan keuangan konsolidasian ini diterbitkan belum ada putusan terkait kasasi tersebut.

.

On December 14, 2016, the Plaintiffs filed an appeal for cassation examination and submitted the Memory of Cassation to the Supreme Court of Republic of Indonesia through Administrative Court of Surabaya.

The Company later received the

Memorandum of Cassation in December 2016 and then submitted a Counter

Memorandum of Cassation on

December 30, 2016. As of the issuance date of these consolidated financial statements, there has been no decision yet with regards to the cassation.

d. Dalam gugatan wanprestasi dan ganti rugi no 58 pdt. 6/2015/PNGSI tanggal 15 Oktober 2015 antara WA, sebagai penggugat yang diwakili oleh Fachruddin Lubis, SH dan Wahyu Ismoyo, SH, mengajukan gugatan wanprestasi dan ganti rugi terhadap PT Persada Subur Makmur sebagai tergugat I dan Antonius Wendy Octavianus sebagai tergugat II.

d. In a breach of contract of lawsuit and compensation No. 58 pdt. 6/2015 / PNGSI dated October 15, 2015 between WA, as plaintiffs represented by Fachruddin Lubis, SH and Wahyu Ismoyo, SH, filed for breach of contract and damages against Persada PT Subur Makmur as the first defendant and Antonius Wendy Octavianus as the second defendant.

Bahwa antara penggugat dan para tergugat telah membuat surat perjanjian nomor: 0427/WA.01/07.2014 tertanggal 23 Juli 2014 mengenai pekerjaan pembuatan

Sistem Informasi Waru Abadi Resource

Planning (WARP), dimana para tergugat

tidak sanggup melaksanakan isi dari

perjanjian tersebut karena sampai

diajukannya gugatan, sistem tersebut tidak

bisa diaplikasikan dan terjadi

keterlambatan. Para tergugat tidak dapat menyerahkan hasil pekerjaan secara keseluruhan kepada penggugat sampai dengan batas waktu pekerjaan tersebut selesai dikerjakan yakni paling lambat 31 Juli 2015.

The plaintiff and the defendant have made agreement number: 0427/WA.01/07.2014 dated July 23, 2014 regarding the making of Waru Abadi Information Systems Resource Planning (WARP), where the defendant was not able to fulfill the agreement as to the filing date of the lawsuit, the system could not be applied and there had been delay. The defendants were not able to submit the results of the work as a whole to the claimant until the deadline for the work is substantially completed no later than July 31, 2015.

Beberapa persidangan pada Pengadilan Negeri Gresik, pada hari kamis, tanggal 23 Juni 2016 Majelis Hakim yang mengadili dan memeriksa perkara ini memutus perkara dengan memenangkan PT. Waru Abadi dengan mengabulkan sebagian gugatan. Berdasarkan informasi dari Panitera bahwa para tergugat tidak

Several trials at the Gresik District Court, on Thursday, June 23, 2016 the judges who adjudicate and examine this case decided to win PT Waru Abadi by granting part of the lawsuit. Based on information from the clerk of the court that the defendant did not accept the result of the decision of the panel of judges by filing the

Dalam pengajuan gugatan wanprestasi dan

ganti rugi register negara

No.9/Pdt.G/2016/PN.Cms pada Pengadilan Negeri Ciamis tertanggal 21 Juni 2016 antara PT Waru Abadi cabang Tasikmalaya sebagai penggugat dan Asep Supriadi sebagai pemilik, pengelola sekaligus penanggung jawab Toko Bangunan Azda Putra sebagai tergugat I dan Dede Kadarsih sebagai pemilik, pengelola sekaligus penanggung jawab Toko Bangunan Azda Putra sebagai tergugat II. WA melakukan permohonan sita persamaan atas 2 (dua) aset berupa sertifikat tanah dengan luas 1.160 m2 yang terletak di Blok Sodong,

Desa Bojongmengger, Kecamatan

Cijeungjing, Kabupaten Ciamis, Propinsi Jawa Barat dan tanah dengan luas 714 m2 yang terletak di Blok Sento, Desa Bojongmengger, Kecamatan Cijeungjing, Kabupaten Ciamis, Propinsi Jawa Barat

In filing the lawsuit for tort and compensation of state registers No. 9 / Pdt.G / 2016 / PN.Cms in Ciamis District Court dated June 21, 2016 between PT Waru Abadi Tasikmalaya branch as the plaintiff and Asep Supriadi as the owner, manager and person in charge of Toko Bangunan Azda Putra as the first defendant and Dede Kadarsih as owner, manager and person in charge of Toko Bangunan Azda Putra as the second defendant. WA appealed for confiscation of 2 (two) assets in the form of certificates of land with an area of 1,160 m2 located in Sodong Block, Bojongmengger Village, District Cijeungjing, Ciamis Regency, West Java Province and land with an area of

714m2, located in Sento Block,

Bojongmengger Village, Sub-district

Cijeungjing, Ciamis Regency, West Java Province.

e. Pada tanggal 24 Juni 2013, Elite Sky Transporatation, Ltd. menunjuk Karmeihan Sabaroedin, SH., sebagai kuasa hukum untuk mendaftarkan gugatan perdata melawan VULS di Pengadilan Negeri Serang dan meminta ganti rugi atas kecelakaan Kapal VU 1/ BG Lintas 1.

e. On June 24, 2013, Elite Sky Transportation Ltd. filed a civil suit against VULS in the Serang District Court and demanded a compensation for VU 1/BG Lintas 1 shipwreck.

Setelah menjalani proses sidang, pada tanggal 8 Oktober 2013 putusan sela dijatuhkan oleh Majelis Hakim Perkara Perdata No. 41/PDT.G/2013/PN.SRG yaitu pada intinya menolak gugatan kuasa hukum Elite Sky Transportation, Ltd. Atas putusan tersebut, pihak kuasa hukum Elite Sky Transportation, Ltd. mengajukan banding.

On October 8, 2013, the panel of judges has handed down their verdict, with verdict

No.41/PDT.G/2013/PN.SRG which

declared to overule Elite Sky

Transportation Ltd. lawsuit, Elite Sky Transportation Ltd. has filed an appeal againts the verdict made by Serang district court.

Setelah menjalani proses sidang, pada tanggal 8 Oktober 2013 putusan sela dijatuhkan oleh Majelis Hakim Perkara Perdata No. 41/PDT.G/2013/PN.SRG yaitu pada intinya menolak gugatan kuasa hukum Elite Sky Transportation, Ltd. Atas putusan tersebut, pihak kuasa hukum Elite Sky Transportation, Ltd. mengajukan banding.

On October 8, 2013, the panel of judges has handed down their verdict, with

verdict No.41/PDT.G/2013/PN.SRG

which declared to overuled Elite Sky Transportation Ltd. lawsuit, Elite Sky Transportation Ltd. has filed an appeal againts the verdict made by Serang district court.

Pada tanggal 6 November 2013, VULS menerima pemberitahuan pernyataan

banding kuasa hukum Elite Sky

Transportation, Ltd. dan atas hal tersebut pada tanggal 2 Januari 2014 kuasa hukum VULS telah mendaftarkan kontra memori banding di Pengadilan Negeri Serang untuk diserahkan kepada Pengadilan Tinggi Banten.

On November 6, 2013, VULS received notice of appeal from Elite Sky Transportation Ltd. attorney at law, on that behalf, VULS on January 2, 2014 has filed a counter memory appeal at the Serang District Court for submission to Banten High Court.

Pada tanggal 20 Pebruari 2014, VULS menerima pemberitahuan pernyataan

banding kuasa hukum Elite Sky

Transportation, Ltd. dan atas hal tersebut pada tanggal 15 April 2014 VULS mendaftarkan kontra memori kasasi di Pengadilan Tinggi Banten.

On February 20, 2014, VULS received notice of appeal from Elite Sky Transportation Ltd. lawyer, and on that behalf on April 15, 2014 VULS has filed a counter cassation on Banten High Court.

Sesuai dengan surat keputusan

No.1874/K/Pdt/2014 tanggal 4 Pebruari 2015, Mahkamah Agung memutuskan untuk menolak pernyataan kasasi dari Elite Sky Transportation, Ltd atas keputusan sebelumnya yang menolak gugatan Elite Sky Transportation, Ltd.

In accordance with the decree No.1874 / K / Pdt / 2014 dated February 4, 2015, the Supreme Court decided to reject the

appeal statement of Elite Sky

Transportation, Ltd. on an earlier decision rejecting the lawsuit Elite Sky Transportation, Ltd.

Pada tanggal 8 Juli 2011, VULS mendaftarkan gugatan wanprestasi atas piutang usaha dari PT Vinici Inti Line Cabang Samarinda dengan nomor perkara 25/pdt.G/2011/PN.Gs. Pada tanggal 17 Januari 2012 VULS mencabut gugatan berdasarkan surat permohonan Nomor. 001/VULS-HK/01/2012 karena PT Vinici Inti Line telah berjanji untuk menyelesaikan sisa piutang dan dibuatkan Surat Perjanjian Utang yang ditandatangani pada tanggal 6 Januari 2012.

On July 8, 2011, VULS registered a lawsuit to PT Vinici Inti Line‘s accounts receivable branch Samarinda with the

letter No.25/pdt.G/2011/PN.Gs. On

January 17, 2012, VULS cancelled the lawsuit based on the letters of solicitation No.001/VULS-HK/01/2012 because PT Vinici Inti Line promised to complete the remaining receivables on the Debt Agreement Letter signed on January 6, 2012.

Namun, PT Vinici Inti Line melakukan wanpretasi karena tidak melakukan pelunasan seluruhnya atas saldo piutang usaha, dimana masih terdapat sisa kewajiban yang belum terbayar sebesar Rp352.111 dan tidak ada itikad baik untuk

melunasinya sehingga

VULS kembali menggugat dengan

ditambah biaya-biaya, bunga dan kerugian serta melakukan sita jaminan berupa tanah dan bangunan yang terletak di Samarinda.

However, PT Vinici Inti Line was not able to fulfill the agreement by an unsettled receivable, leaving the recivable balance amounting to Rp352,111 and has no good faith to settled so VULS resue with the additional fees, interest, and loss also do the sequestration in the form of land and buildings located in Samarinda.

Pada tanggal 19 November 2014, Pengadilan Negeri Gresik menyatakan bahwa gugatan VULS dapat diterima dan dikabulkan seluruhnya dan menghukum PT Vinici Inti Line untuk memenuhi

kewajibannya kepada VULS serta

membayar bunga dan uang paksa serta menyatakan sah atas sita jaminan. Keputusan tersebut tertuang dalam Putusan Nomor. 30/Pdt.G/2014/PN.Gsk.

On November 19, 2014, Gresik District Court stated that VULS's lawsuit is accepted and granted entirely and punish PT Vinici Inti Line to fulfill its obligations to VULS and also pay interest and forced money legally sequestration. The decision stated in the decision Letter No. 30/Pdt.G/2014/PN.Gsk.

Keputusan ini diperkuat oleh surat keterangan dari Pengadilan Negeri Gresik No.1/Inkracht.Pdt/4/2015/PN Gsk tanggal 13 April 2015 yang menyatakan bahwa Putusan Perkara No.30/Pdt.G/2014/PN.Gs

This decision is reinforced by a letter from

the District Court Gresik

No. 1/Inkracht.Pdt/4/2015/PN.Gsk on April 13, 2015 stated that the Case Decision No.30/Pdt.G/2014/PN.Gs have

4) Berdasarkan Keputusan No.1488/QD-TTg yang dikeluarkan oleh Perdana Menteri Vietnam pada tanggal 29 Agustus 2011 yang meratifikasi atas rencana pengembangan industri semen di Vietnam untuk periode 2011 - 2020 dengan visi sampai 2030, proyek pabrik semen TLCC2 telah termasuk dalam daftar proyek yang disetujui. Namun, berdasarkan Keputusan No. 1588/QD-UBND yang dikeluarkan oleh Komite Rakyat Provinsi Quang Ninh pada tanggal 28 Juli 2014 untuk persetujuan rencana konstruksi regional Provinsi Quang Ninh untuk visi 2030 hingga 2050 dan setelah 2050, lokasi proyek pabrik semen TLCC2 kemungkinan akan direlokasi ke area lain. Sampai dengan tanggal penerbitan laporan

keuangan konsolidasian, TLCC2 telah

mengirimkan dokumen kepada otoritas terkait untuk memohon perijinan melanjutkan proyek konstruksi namun hingga saat ini belum mendapatkan tanggapan. Manajemen yakin bahwa pabrik semen TLCC2 tidak akan

direlokasi sesuai dengan Keputusan

No.1488/QD-TTg.

4) According to Decision No.1488/QD-TTg issued by the Prime Minister of Vietnam dated on August 29, 2011 ratifying the cement industry development plan in Vietnam for the period 2011 - 2020 with vision to 2030, the cement plant project of TLCC2 was included in the approved list of projects. However,

according to Decision No. 1588/QD-UBND

issued by People’s Committee of Quang Ninh

Province dated on July 28, 2014for approval

of regional construction plan of Quang Ninh Province to 2030 vision toward 2050 and beyond 2050, the site of TLCC2 cement plant project may be re-allocated to another area. As of the issuance date of the consolidated financial statements, TLCC2 had sent a document to relevant authorities requesting for

permission to continue theproject construction

but not yet received any feedback. The

management believes that the Company’s

cement plant would not be subject to reallocation as per Decision No.1488/QD-TTg.

50. TRANSAKSI NONKAS 50. NON-CASH TRANSACTIONS

Transaksi investasi dan pendanaan nonkas Grup

adalah sebagai berikut: Non-cash investing and financing transactions of the Group are as follow:

31 Maret / 31 Maret / March 31, March 31,

2017 2016

(Unaudited) (Unaudited)

Biaya pinjaman dikapitalisasi Unpaid borrow ing costs

yang belum dibayar 41.068.933 8.341.953 capitalized

Perolehan aset tetap melalui Acquisition of fixed assets

sew a pembiayaan - 22.298.860 through finance lease Kapitalisasi estimasi biaya Capitalization of the estimated

pembongkaran aset tetap 6.091.084 3.446.823 cost of dismantling of fixed assets

Reklasifikasi uang muka Reclassification of advances

pabrik baru 50.679.824 247.373.059 for construction of new plant

Jumlah 97.839.841 281.460.695 Total

51. PERISTIWA SETELAH PERIODE LAPORAN 51. EVENTS AFTER THE REPORTING PERIOD

Sesuai Keputusan Para Pemegang Saham Diluar Rapat Umum Pemegang Saham tanggal 4 April 2017, Perseroan melakukan penambahan modal pada SIA sebesar Rp91.400.000 dan membeli saham SIA dari SCA sebanyak Rp 20.000.000. Penambahan modal dan pembelian saham ini meningkatkan jumlah kepemilikan Perseroan yang semula 38,28% menjadi 52,28%

Based on Shareholder Resolution Outside of the General Meeting of Shareholders dated on April 4, 2017, the Company issued additional share capital in SIA amounting to Rp91,400,000 and purchase the shares of SIA from SCA amounting to Rp20,000,000. Addition of share capital issuance and purchase of shares increased the Company's voting interest from 38.28% to 52.28%.

52. TANGGUNG JAWAB MANAJEMEN DAN PERSETUJUAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN

52. MANAGEMENT RESPONSIBILITY AND APPROVAL OF CONSOLIDATED FINANCIAL STATEMENTS

Penyusunan dan penyajian wajar laporan keuangan konsolidasian dari halaman 1 sampai 179 merupakan tanggung jawab manajemen, dan telah disetujui oleh Direktur untuk diterbitkan pada tanggal 27 April 2017.

The preparation and fair presentation of the consolidated financial statements on pages 1 to 179 were the responsibilities of the management, and were approved by the Directors and authorized for issue on April 27, 2017.

PT Semen Padang (“SP”) Indarung, Sumatera Barat/ Produsen semen/ 99,99% 99,99% 1913 9.170.428.937 9.210.952.435 West Sumatera Cement manufacturing

PT Sepatim Batamtama Batam, Riau Pengantongan semen dan distribusi/ 97,00% 97,00% 1994 34.843.384 33.050.558 (“SB”) 97% saham dimiliki SP/ Cement packing and distribution

97% shares owned by SP

PT Bima Sepaja Abadi (”BSA”) 80% saham Tanjung Priok, Pengantongan semen dan distribusi/ 80,00% 80,00% 1996 158.907.540 163.322.799 dimiliki SP/80% shares owned by SP Jakarta Cement packing and distribution

PT Semen Tonasa (“ST”) Pangkep, Sulawesi Selatan/ Produsen semen/ 99,99% 99,99% 1968 8.567.903.599 8.730.454.358 South Sulawesi Cement manufacturing

PT Semen Gresik (“SG”) Gresik, Jawa Timur/ Produksi semen/ 99,96% 99,96% - 5.183.944.907 4.814.349.323 East Java Cement manufacturing

PT United Tractors Semen Gresik (“UTSG”) Tuban, Jawa Timur/ Penambangan batu kapur dan tanah liat/ 55,00% 55,00% 1992 444.981.790 380.306.292 East Java Limestone and clay mining

PT Industri Kemasan Semen Gresik (“IKSG”Tuban, Jawa Timur/ Produsen kantong semen/ 60,00% 60,00% 1994 273.362.953 273.525.109 East Java Cement bag manufacturing

PT Kawasan Industri Gresik (“KIG”) Gresik, Jawa Timur/ Pengembangan kawasan industri/ 65,00% 65,00% 1991 336.706.472 341.708.176 East Java Industrial real estate

PT SGG Energi Prima (”SEP”) Gresik, Jawa Timur/ Pertambangan, perdagangan 97,00% 97,00% 2012 149.995.652 93.906.025 East Java dan pengangkutan Batubara/

Mining, trade and coal transportations

PT Semen Indonesia Beton (”SIB”) dahulu Jakarta Selatan, Produksi beton siap pakai/ 99,99% 99,99% 2012 1.401.824.039 1.421.925.523 bernama PT SGG Prima Beton ("SPB")/ DKI Jakarta Ready mix concrete

previously named PT SGG Prima Beton

PT Varia Usaha Beton ("VUB") Sidoarjo, Jawa Timur/ Produksi beton siap pakai/ 63,15% 36,67% 1991 603.643.029 594.612.752 50,90% saham dimiliki SIB dan East Java Ready mix concrete production

49,10% saham dimiliki SIL/ 50,90% shares owned by SIB and 49,10% shares owned by SIL

PT Krakatau Semen Indonesia ("KSI") Cilegon, Jawa Barat/ Pasir Blast Furnace Slag/ 99,48% 50,00% 2014 282.418.294 242.366.162 West Java Ground Granulated Blast

Furnance Slag (GGBFS)

PT Sinergi Informatika Semen Indonesia Jakarta Selatan, Sistem Informasi/ 100,00% 100,00% 2014 93.923.936 89.673.220 ("SISI") DKI Jakarta Information system

PT Semen Indonesia Aceh ("SIA") Aceh, Produksi semen/ 38,28% 38,28% 2016 477.947.406 466.951.438 Sumatera Cement manufacturing

PT Semen Indonesia International ("SII") Jakarta Selatan, Perdagangan jasa pelayanan, 100,00% 100,00% 2016 40.690.455 6.472.445 DKI Jakarta manajemen logistik, dan investasi

Thang Long Cement Joint Hanoi, Produksi semen/ 70,00% 70,00% 2008 2.803.998.301 2.951.778.700 Stock Company (”TLCC”) Vietnam Cement manufacturing

Thang Long Cement Joint Stock Company 2Hanoi, Produksi semen/ 69,57% 69,57% - 39.241.054 39.852.420 (”TLCC2”) 99,08% saham dimiliki TLCC/ Vietnam Cement manufacturing

99.08% shares owned by TLCC

An Phu Cement Joint Stock Company (”APCHanoi,” Produksi semen/ 69,93% 69,93% - 54.584.808 55.900.217 99,90% saham dimiliki TLCC/ Vietnam Cement manufacturing

99.90% shares owned by TLCC

PT Semen Kupang Indonesia (”SKI”) Kupang Produksi semen/ 99,48% 99,48% - 190.402.386 191.254.760 NTT Cement manufacturing

PT Semen Indonesia Logistik ("SIL") Gresik Jawa Timur/ Perdagangan, transportasi, Jasa bongkar 73,65% 73,65% 1974 1.923.692.153 1.753.895.831 dahulu bernama PT Varia Usaha ("VU")/ East Java muat dan konstruksi/Trade, Transporation,

previously named PT Varia Usaha and Construction

PT Waru Abadi ("WA") Gresik Jawa Timur/ Perdagangan/Trading 73,61% 73,61% 1989 293.586.318 270.622.006 East Java

PT Varia Usaha Bahari ("VUBA") Gresik Jawa Timur/ Jasa bongkar muat/ 73,65% 73,65% 1992 78.744.913 64.530.843 64,00% saham dimiliki SIL dan East Java Stevedoring services

36,00% saham dimiliki WA entitas anak SIL/

64,00% shares owned by SIL and 36,00% shares owned by WA the subsidiary of SIL

PT Varia Usaha Dharma Segara ("VUDS") Gresik Jawa Timur/ Jasa pengurusan transportasi/ 73,65% 73,65% 1995 38.543.892 43.594.380 48,00% saham dimiliki SIL dan East Java Freight forwarding

52,00% saham dimiliki WA entitas anak SIL/

48,00% shares owned by SIL and 52,00% shares owned by WA the subsidiary of SIL

PT Varia Usaha Lintas Segara ("VULS") Gresik Jawa Timur/ Jasa transportasi laut/ 73,65% 73,65% 1997 84.643.278 54.080.857 60,00% saham dimiliki SIL dan East Java Ocean freight

40,00% saham dimiliki VUBA entitas anak SIL/

60,00% shares owned by SIL and 40,00% shares owned by VUBA the subsidiary of SIL