2011 Annual Report. Aiming Higher

2011

Annual Report

Aiming Higher

In 2011,

ITM aimed higher, achieving gains on all fronts...

Highest coal output ever

25.0 million tons

Record sales revenue growth

45% increase

Improved efficiency

Systematic cost management

...towards our vision of becoming a leading coal-related energy company in Indonesia

Good corporate governance

Reached Stage 2 of Implementation Roadmap Community contributions

Help local businesses become productive

US$2,382

US$0.48

23%

Net Sales Revenue

Earnings per Share

Net Profit Margin

million

Table of Contents

Highlights 2011

4

FINANCIAL SUMMARY

4

SALES 2011

5

SHARE Price And PERFORMANCE

6

DIVIDENDS

7

SIGNIFICANT EVENTS AND AWARDS 2011

8

Company Profile

9

ITM IN BRIEF

11

VISION AND MISSION

12

CORPORATE SHARED VALUES

14

MAP OF OPERATIONS

15

SHAREHOLDER STRUCTURE

16

SHAREHOLDING OWNERSHIP HISTORY

16

COMPANY SHAREHOLDERS AS OF 31 DECEMBER 2011

17

SUBSIDIARY COMPANIES

17

Typical COAL SPECIFICATIONS

19

RESOURCES AND RESERVES

19

ORGANIZATIONAL STRUCTURE OF ITM

20

Business Review

22

REPORT OF PRESIDENT COMMISSIONER

24

REPORT OF PRESIDENT DIRECTOR

26

SALES AND MARKETING

28

OPERATIONAL REVIEW

30

Mining Review

30

Mining Operation Reports

31

Contractor Management System

34

Coal Quality Management

35

Business Continuity Management

36

QUALITY, SAFETY AND ENVIRONMENT

37

ENERGY MANAGEMENT

40

HUMAN RESOURCES

41

INFORMATION TECHNOLOGY

44

COMMUNICATIONS

45

MANAGEMENT DISCUSSION AND ANALYSIS Good Corporate Governance AND Social Responsibility

49 65

GOOD CORPORATE GOVERNANCE

67

GCG as Corporate Culture

67

Code of Conduct

67

Compliance Division

68

Independent Whistle Blower Center (IWBC)

69

Rights of Shareholders

69

GCG Implementation

70

• Annual General Meeting of Shareholders

70

• Board of Commissioners

71

• Board of Directors

73

• Ensuring BoC & BoD Independence

75

• Corporate Secretary

76

• Good Corporate Governance, Nomination and Compensation Committee

76

• Audit Committee

77

• Audit Committee Report

78

• Policy on Risk Management

79

• Risk Management Committee

79

• Internal Audit

80

• External Audit

81

CORPORATE SOCIAL RESPONSIBILITY AND COMMUNITY DEVELOPMENT

Responsibility for the Annual Report

82

91

RESPONSIBILITY FOR THE ANNUAL REPORT

92

CORPORATE DATA

94

Board of Commissioners Profile

94

Board of Directors Profile

96

Audit Committee Profile

98

Directory

99

GLOSSARY

Financial Statements

100

103

Financial Summary Expressed in thousand US Dollars, unless otherwise stated

2011

2010*

change

2009*

2008*

2007*

2,381,875

1,644,650

45%

1,500,825

1,297,363

755,562

Gross profit

892,068

518,053

72%

562,870

458,193

189,813

Operating income

706,915

362,908

95%

435,815

340,012

120,774

Net income

546,126

204,151

167%

335,551

234,925

55,785

1,129,925

1,129,925

-

1,129,925

1,129,925

533,840

0.48

0.18

167%

0.30

0.21

0.10

1,066,427

608,153

75%

673,004

498,228

380,692

512,047

481,553

6%

525,567

480,837

394,937

1,578,474

1 ,089 706

45%

1,198,571

979,065

775,629

450,748

331,527

36%

340,267

325,905

238,986

46,922

37,155

26%

70,818

42,790

80,328

497,670

368,682

35%

411,085

368,695

319,314

Total equity

1,080,804

721,024

50%

787,486

610,370

456,315

Total liabilities and equity

1,578,474

1,089,706

45%

1,198,571

979,065

775,629

Net working capital

615,679

276,626

123%

332,737

172,323

141,706

Capital expenditure

49,471

55,621

(11%)

78,831

98,502

60,463

Ratio of profit against total assets

35%

19%

16%

28%

24%

7%

Ratio of profit against equity

51%

28%

23%

43%

38%

12%

237%

183%

54%

198%

153%

159%

Liabilities ratio against equity

46%

51%

(5%)

52%

60%

70%

Liabilities ratio against total assets

32%

34%

(2%)

34%

38%

41%

Gross profit margin

37%

31%

6%

38%

35%

25%

Net profit margin

23%

12%

11%

22%

18%

7%

Net sales

Weighted average number of ordinary shares outstanding (in thousands of shares) Basic earnings per share (full amount) Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities

Current ratio

* Certain comparative figures in the consolidated financial statements have been amended to conform with the basis on which the consolidated financial statements for the year have been presented. In particular, to conform with the presentation of the 2011 consolidated financial statements, the accounts of net sales and selling expense in the consolidated statements of comprehensive income have been reclassified.

4

Annual Report 2011 PT Indo Tambangraya Megah Tbk

H ighlights 2011

Operating Income

(Units in thousand US dollars)

(Units in thousand US dollars)

706,915 362,908

120,774

435,815

340,012

1,664,650

1,500,825

755,562

1,297,363

2,381,875

Net Sales

07

08

09

10

11

07

08

09

10

11

SALES 2011 6%

6% 60% PT Indominco Mandiri: 14.9 million tons (60 %) PT Trubaindo Coal Mining: 6.8 million tons (28% ) PT Kitadin: 1.6 million tons (6%)

28%

PT Jorong Barutama Greston: 1.4 million tons (6%)

TOTAL: 24.7 million tons


5

Share Price and Performance Stock Performance 2010 Share Price (Rp/share)

Volume

60,000

12,000,000

55,000 50,000

10,000,000

45,000 40,000

8,000,000

35,000 30,000

6,000,000

25,000 20,000

4,000,000

15,000 10,000

2,000,000

5,000 0

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

0

Share Price

Stock Performance 2011

Volume

Share Price (Rp/share)

Volume

60,000

12,000,000

55,000 50,000

10,000,000

45,000 40,000

8,000,000

35,000 30,000

6,000,000

25,000 20,000

4,000,000

15,000 10,000

2,000,000

5,000 0

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

2011

Nov

Dec

0

2010

Highest (Rp)

Lowest (Rp)

Closing (Rp)

Average Trading Volume (Rp)

Highest (Rp)

Lowest (Rp)

Closing (Rp)

Average Trading Volume (Rp)

1st Quarter

56,800

42,100

46,200

2,712,403

38,950

28,950

38,050

2,109,779

2nd Quarter

49,850

44,450

44,750

1,571,689

40,300

30,200

37,150

1,273,984

3rd Quarter

51,800

38,750

39,250

2,064,417

41,600

37,100

41,600

1,345,133

4th Quarter

44,800

34,600

38,650

1,306,570

55,000

41,400

50,750

1,409,831

Period

Shares of the Company were first listed on the Indonesia Stock Exchange on 18 December 2007 in the amount of 1,129,925,000 shares valued at Rp 14,000 each.

6


H ighlights 2011

Dividends For financial year 2011, ITM paid interim dividend of Rp1,168 per share on 14 October 2011

In accordance with the Articles of Association, it is ITM’s policy to appropriate net operating profit earned during the whole financial year to pay cash dividend after taking into account the rate of profit earned, allowance for reserves and business expansion program. Further, the distribution of interim dividend is subject to the Board of Commissioners’ approval, in which the amount will be calculated in the final

dividend to be approved in the next Annual General Meeting of Shareholders. This policy is part of ITM’s commitment to provide optimum shareholders’ return. For financial year 2011, ITM paid interim dividend of Rp 1,168 per share on 14 October 2011. The total dividend payout ratio was 75% of the first half 2011 ITM net income.

Dividend Payment History Year

Payment date

2008

23 May

Final dividend

2007

155

60%

2008

22 October

Interim 1st half

2008

344

60%

2008

19 December

Interim Q3

2008

295

50%

2009

28 May

Balance of final dividend

2008

706

67%

2009

3 November

Interim 1st half

2009

678

50%

2010

12 May


2009

1,286

88%

2010

15 October

Interim 1st half

2010

795

75%

2011

6 May


2010

407

75%

2011

14 October

Interim 1st half

2011

1,168

75%

Description

Book Year

Dividend per Share (Rp)

Payout Ratio


7

Significant Events and Awards 2011 February

September

PT Kitadin Tandung Mayang restarted mine operation activity on its own concession.

• Team from PT Indominco Mandiri received Excellent Medal & Best Performance in International Convention Quality Control Circles held in Japan.

March

• The 3rd ITM Innovation Convention was held in Balikpapan. Annual General Meeting of Shareholders held at the Dharmawangsa Hotel, Jakarta.

May October Payment of Interim Dividend for performance in 1st half of 2011 amounting to Rp1,168 per share.

November • ITM was selected as Top Performing Listed Company in the Investor Awards held by Investor magazine. • Payment of 2010 Balance of Final Dividend amounting to Rp407 per share.

June

Annual Executive Mining Contractor Meeting held in Yogyakarta with ITM management.

8


• A Public Expose was held at the Dharmawangsa Hotel, Jakarta. • 2011 Strategy and Performance Execution Excellence Award, “Top 10 Award Finalist” by GML Consulting & Fortune magazine.

December

• ITM received a CG Award in the category of “Best Responsibility of the Boards” from Indonesian Institute for Corporate Directorship (IICD) & Business Review magazine. • Corporate Governance Perception Index Award, “Trusted Company” by Indonesian Institute for Corporate Governance & SWA magazine.

Company Profile

Company Profile 11

ITM in Brief

12

Vision & Mission

14

Corporate Shared Values

15

Map Of Operations

16

Shareholder Structure

16

Shareholding Ownership History

17

Company Shareholders as of 31 December 2011

17

Subsidiary Companies

19

Typical Coal Specifications

19

Resources and Reserves

20

Organizational Structure of ITM

Company P rofile

ITM in Brief ITM is a leading Indonesian supplier of coal to the world’s energy markets. We aim to set the highest standards in the areas of GCG, as well as Quality, Safety and Environmental compliance. All of our activities are conducted in close collaboration with local communities and other stakeholders.

Since our establishment in 1987, ITM has become known as a premium coal producer and has built a diversified base of customers. In 2001, we were acquired by the Banpu Group of Thailand and at the end of 2007, we went public.

Today, ITM comprises integrated coal mining, coal processing and operational logistics in Indonesia. The Company holds majority ownership in five subsidiary companies, operating six concessions on the island of Borneo, in the provinces of East, Central, and South Kalimantan. We also own and operate a coal terminal in Bontang, three barge loading facilities, and a power plant. Of these six sites, five are in the production stage, namely those held by PT Indominco Mandiri, PT Trubaindo Coal Mining, PT Jorong Barutama Greston, PT Kitadin (Embalut) and PT Kitadin (Tandung Mayang). The sixth site, held by PT Bharinto Ekatama, plans to go into production in 2012.


11

VISION

12


To become a leading coalrelated energy company in Indonesia with sustainable growth through professionalism and care to our employees, community and environment.

Company P rofile

MISSION

To develop operational excellence to serve our customers with consistent quality and quantity of product and services. To develop competent employee, efficient systems and infrastructure under the innovation, integrity, care and synergy culture within the organization. To invest in coal-related energy businesses that will sustainably strengthen our position. To promote and contribute to the development of society by acting as a good citizen and contribute to the economy and society.


13

Corporate Shared Values Our core values are manifested in the Banpu Spirit, which we aim to foster in such a way that ITM employees, Directors and Commissioners feel proud to belong to the company and in such a way that external parties recognize such values as characteristics of ITM employees, Directors and Commissioners.

Innovation Think out of the box, act intelligently, dare to initiate, courageous and challenging, pro-active, flexible and versatile, adaptive and resilient, continuously developing.

Integrity Honest, ethical, reliable, disciplined, persistent, committed, transparent.

Care Open and sincere, accepting and accommodating, honoring others, respectful, warm and solicitous, kind and generous.

Synergy Cooperative, fair-minded, teamwork, networking, supportive and sharing, strive for win-win.

14


Company P rofile

Map of Operations PT Indominco Mandiri

EAST KALIMANTAN

• Mining Area (West and East Block)

PT Trubaindo Coal Mining

• Crushing Plant I, II, III

• Mining Area (North and South Block)

• Washing Plant

• Crushing Plant and Mobile Crushing Plant

PT Kitadin (Tandung Mayang)

• Washing Plant

Bontang Coal Terminal (BoCT)

Production resumed in Q3 2011

MAHAKAM RIVE

• Bontang Coal Laboratory (BCL) • Coal Fired Power Plant

R

• Continuous Barge Unloader (CBU) • Onshore and Offshore Conveyor into Shiploader

KITADIN (TANDUNG MAYANG) BONTANG COAL TERMINAL (BoCT)

INDOMINCO

TRUBAINDO

PT Bharinto Ekatama

BUNYUT BARGE LOADER

• Preparation for Mining in 2012

EMBALUT BARGE LOADER

KITADIN (EMBALUT) MUARA BERAU (ANCHORAGE)

SAMARINDA

• Crushing Plant

PT Kitadin (Embalut) • Mining Area (L3)

MUARA JAWA (ANCHORAGE)

BHARINTO

BALIKPAPAN

CENTRAL KALIMANTAN

• Crushing Plant

BALIKPAPAN COAL TERMINAL (BCT)

PALANGKARAYA

SOUTH KALIMANTAN Capital City City

BANJARMASIN

PT Jorong Barutama Greston • Mining Area (East and Central Block) • Crushing Plant

JORONG BARGE LOADER

JORONG

Mine Project Port Anchorage/Coal Loading Point


15

Shareholder Structure Banpu Public Company Ltd. 99,99%

Banpu Minerals Co. Ltd. 100% 50%

Banpu Coal Investment Co. Ltd. 50%

Public

Banpu Minerals (Singapore) Pte. Ltd. 65%

35%

PT Indo Tambangraya Megah Tbk

99.99%

99.99%

PT Indominco Mandiri


99.00%

PT Bharinto Ekatama

99.99%

PT Kitadin

99.67%

PT Jorong Barutama Greston

Share Ownership History 1987

ITM was founded in 1987.

2001

In 2001, it was acquired by the Banpu Group of Thailand.

2007 2008 2010

16

At the end of 2007, ITM went public. At that time, Banpu through PT Centralink Wisesa International held 77.60% of the issued shares, PT Sigma Buana Cemerlang held 2.40%, and the remaining was held by the public.

In 2008, PT Centralink Wisesa International’s shares were transferred to Banpu Minerals (Singapore) Pte.Ltd for 73.72%, and the public portion increased from 20% to 26.28%. In 2010, Banpu Minerals (Singapore) Pte. Ltd disposed 8.72% of its shares to the public, retaining majority ownership of 65.00% with the remainder held by the public and other individuals at less than 5% each.


Company P rofile

Company Shareholders as of 31 December 2011 Shareholders Banpu Minerals (Singapore) Pte. Ltd.

Ownership

Number of shares

65%

734,452,000

Somyot Ruchirawat — President Director

0.0092927%

105,000

Hartono Widjaja — Director

0.0072571%

82,000

Ir. Lukmanul Hakim, MM — Commissioner

0.0008408%

9,500

Rudijanto Boentoro — Commissioner

0.0004425%

5,000

< 5%

395,271,500

Public

Subsidiary Companies PT Indominco Mandiri Shareholding Structure

: PT Indominco Mandiri is a 99.99% owned subsidiary of ITM which was established on 11 November 1988.

License

: The Coal Contract of Work is valid for 30 years after the company entered the production stage and was approved by the Ministry of Energy and Mineral Resources (ESDM), as follows: • West Block from 1 April 1998 to 31 March 2028 • East Block from 5 October 2000 to 5 October 2030

Area

: Initial area of 100,000 hectares was gradually relinquished, now to 25,121 hectares in the Bontang, Kutai Kertanegara and East Kutai regencies of the province of East Kalimantan. This area is divided between the: • West Block - 18,100 hectares • East Block - 7,021 hectares

Production Start

: 1997

PT Trubaindo Coal Mining Shareholding Structure

: PT Trubaindo Coal Mining is a 99.99% owned subsidiary of ITM which was established on 13 March 1990.

License

: Coal Contract of Work valid up to February 2035.

Area

: Initial area of 100,000 hectares was gradually relinquished to 23,650 hectares in the districts of Muara Lawa, Bentian Besar, Muara Pahu and Damai of the regency of West Kutai in the province of East Kalimantan

Production Start

: 2005


17

PT Bharinto Ekatama Ownership Status

: PT Bharinto Ekatama is a 99.00% owned subsidiary of ITM which was established on 9 January 1996.

License

: Coal Contract of Work (CCoW) from 20 November 1997 extended to be valid up to 30 June 2041.

Area

: Initial area of 93,100 hectares was gradually relinquished to leave 22,000 hectares in the regencies of West Kutai and North Barito in the provinces of East and Central Kalimantan.

Production Start

: 2012

PT Kitadin Shareholding Structure

: PT Kitadin is a 99.99% owned subsidiary of ITM which was established on 25 January 1978.

PT Kitadin (Embalut) License

: Mining Rights (KP) initially granted for Embalut have been converted into IUP valid from 25 February 2009 -25 February 2013.

Area

: Concession area of 2,973 hectares in Embalut village, Kutai Kartanegara regency, East Kalimantan.

Production Start

: 1983

PT KItadin (Tandung Mayang) License

: Mining Rights (KP) initially granted for Tandung Mayang have been converted into IUP valid from 28 May 2008 – 28 May 2018.

Area

: Concession area of 2,338 hectares is located in Tandung Mayang, in the regency of East Kutai, East Kalimantan.

Production Start

: 1999


18

Shareholding Structure

: PT Jorong Barutama Greston is a 99.67% subsidiary of ITM which was established on 10 May 1991.

License

: Coal Contract of Work valid up to May 2035.

Area

: After successive relinquishments, a concession area of 11,478 ha remain located in the districts of Pelaihari and Jorong, Tanah Laut regency, South Kalimantan.

Production Start

: 1999


Company P rofile

Typical Coal Specifications Subsidiary

Coal Calorific Value (kcal/kg coal)

Coal Sulfur Content


6,000 – 6,500

0.8-1.6%


6,500 – 7,300

0.8-1.4%

PT Bharinto Ekatama

6,400 – 6,800

1.5%

5,850 6,700

0.2% 1.5%

5,300 – 5,800

0.3%

PT Kitadin • PT Kitadin (Embalut) • PT Kitadin (Tandung Mayang) PT Jorong Barutama Greston

Resources and Reserves (Million Tonnes)

As of 31 December 2011 Mine Operation / Project

As of 31 December 2010

TOTAL Resources

TOTAL Reserves

TOTAL Resources

TOTAL Reserves

695.2

173.8

697.2

149.6

West Block

242.5

27.6

251.2

35.2

East Block

452.7

146.2

446.0

114.4


326.9

101.8

334.7

108.5

PT Bharinto Ekatama

298.0

112.4

298.0

45.4

PT Kitadin (Embalut)

150.4

14.0

151.7

15.2


12.4

9.2

12.9

9.7


143.8

5.7

145.4

7.2

1,626.7

416.9

1,639.9

335.6


TOTAL

* Note : Updated Coal Resources and Reserves as of 31 December 2011 is based on estimation and classified using the JORC Code & technical studies and audits conducted by the independent mineral experts and internal experts.


19

ORGANIZATIONAL STRUCTURE OF ITM

Audit Committee

Internal Audit

Finance

Corporate Services

Corporate Finance & Investor Relations

Tax

Human Resources

Information Technology

External Relations

Accounting

Financial System & Procedure

QSE

General Services

Corporate Communications & Community Development

Business Process Management

Legal

Treasury

ITM Branch Office

20

Corporate Affairs


Company P rofile

Board of Commissioners

President Director

Secretary

Sales & Logistics

Sales North Asia, Europe

Commercial Strategy

Sales China, Hong Kong


Sales South Asia, Domestic and Compliance

Coal Utilization

Operations

Corporate Secretary

Business Development

Operations Support

PT Indominco Mandiri PT Kitadin Td. Mayang Site

Country Compliance

PT Trubaindo Coal Mining PT Bharinto Ekatama PT Kitadin Embalut Site PT Jorong Barutama Greston


21

Business Review 24

Report of President Commissioner

26

Report of President Director

28

Sales and Marketing

30

Operational Review

30

Mining Review

31

Mining Operation Reports

34


35


36


37

Quality, Safety and Environment

40

Energy Management

41

Human Resources

44


45

Communications

Report of President Commissioner Dear Shareholders and Stakeholders, In 2011, ITM had one of its best years ever. Coal prices fluctuated over the year but remained relatively high despite the broad slowdown in global economic growth caused by worries in the Euro zone and the state of the American economy. Prices were supported largely by growing Chinese demand for thermal coal.

Management & Performance Throughout 2011, the Board of Commissioners has monitored the performance of the Board of Directors, amongst others with regard to the implementation of company strategy, as well as giving feedback and evaluation as needed. The Board of Directors and employees of ITM continued to do excellent work, setting their aims higher and steering the company to greater heights. The company’s revenue achievements were due in part to proactive marketing and the large Asian customer base, whose demand stayed robust. However, performance was also driven by various systematic improvements which had been made over time including good mining practices, strengthening the organization towards better all-round performance. In 2011, not only did ITM reach record production and strengthen its financial performance, but its management and employees have also striven to improve in other ways such as improving its safety record and good corporate governance awareness, rehabilitating the environment and giving back to the community through ongoing Corporate Social Responsibility and Community Development programs. All ITM sites strive for compliance with relevant regulations both environmental and otherwise, as reflected in the theme of this year’s annual report ‘Aiming Higher’.

24


B usiness R eview

In 2011, not only did ITM reach record production and strengthen its financial performance, but its management and employees have also striven to improve in other ways such as improving its safety record and good corporate governance awareness, rehabilitating the environment and giving back to the community through ongoing Corporate Social Responsibility and Community Development programs.

Good Corporate Governance & Compliance The Board of Commissioners is pleased to note that ITM made progress in its pursuit of becoming an outstanding corporate c i t i ze n , re f l e c t i n g m a n a g e m e n t ’s commitment to creating a strong and well-governed company that reflect the good corporate governance principles of transparency, accountability and responsibilit y, independence and fairness as well as the corporate values of Innovation, Integrity, Care, and Synergy as embodied in the Banpu Spirit. The implementation of these principles have significantly contained business and governance risks as well as winning the support and trust of stakeholders, namely shareholders, employees, suppliers, customers, the government and the community. More detail is provided in the GCG section of this report, but the essential takeaway is that ITM is going above and beyond mere compliance in pursuit of its vision of becoming an ethical good corporate citizen. One such initiative is the ongoing long term biodiversity study in partnership with Purwodadi Botanical Gardens. The Board of Commissioners wishes to express our appreciation for the Directors’ efforts to raise the level of compliance monitoring within the Company, as exemplified by the evolution of the Compliance Committee to become a more permanent and expanded Compliance Division. These achievements were recognized by a number of awards such as “Best

Responsibilities of the Boards” from the Indonesian Institute for Corporate Directorship and “Top Performing Listed Company ” from Investor Awards held by Investor Magazine.

and procedural enhancements that ITM implemented in 2011 will strengthen the company going forward, ultimately resulting in a stronger and more efficient organization that is better equipped to compete in the market.

A number of committees aided the Board of Commissioners in its supervisory tasks over the year, namely the Audit Committee, Internal Audit, Risk Management Committee, and the Good Corporate Governance, Nomination and Compensation Committee. All committees functioned as intended, giving valuable contributions and input to the Board and the shareholders. In particular, the Audit Committee reviewed the Company’s accounting policy and practices and found them to be of high standard according to international Committee of Sponsoring Organization (COSO) framework standards.

Closing Remarks The Board of Commissioners conveys our appreciation to the Board of Directors and all employees for their performance and hard work in 2011. A special note of appreciation goes out to Mr. Rawi Corsiri who was honorably discharged from the Board of Commissioners, for his hard work and numerous contributions during his tenure. Replacing him is DR Sathidphong Wattananuchit, whose experience and skills will be a valuable addition to the Company. Finally, the Board of Commissioners wish to express our gratitude to all stakeholders for their support of ITM as we strove to aim higher and achieve more.

Business Prospects Given the Company’s strong financial position, the Board of Commissioners wishes to remind the Board of Directors of the importance of developing ITM’s business further. It is also the Board of Commissioners’ view that the corporate strategy and good governance framework that has been implemented by the Board of Directors must be prioritized in order for ITM to achieve its aim of becoming a leading world-class coal mining company, especially facing an increasingly competitive coal industry. The policy

Ibrahim Yusuf President and Independent Commissioner


25

Report OF President Director ITM aimed higher on all fronts in 2011, building on the groundwork laid in previous years to produce gains in all areas. Apart from production and revenue growth, the Company implemented systems improvements and strengthened good corporate governance.

Production & Financial Performance Production rose by 3.0Mt over the year to reach 25.0Mt in 2011, an increase of 14% that translated into a 45% increase in net sales revenue over the same period. Net sales revenue reached US$2,382 million in what has been our strongest performance since going public. Our balance sheet also improved across the board with net working capital increasing year-on-year by 123% to US$615.7 million, and the liabilities to equity ratio dropping for the fifth successive year to 46%. Basic earnings per share rose to US$0.48 from US$0.18 the year before. Overall, ITM performed solidly in 2011 in line with targets and expectations. Of the 25.0Mt total production, 14.8Mt came from PT Indominco Mandiri, 7.1Mt from PT Trubaindo Coal Mining, 1.3Mt from PT Kitadin (Embalut), 0.4Mt from PT Kitadin (Tandung Mayang), and 1.4Mt from PT Jorong Barutama Greston. Production was largely in line with expectations despite unexpectedly heavy rainfall in the first half of the year. The exception was PT Bharinto Ekatama, whose production has been pushed back to 2012 pending completion of a hauling road, and PT Jorong Barutama Greston whose output exceeded expectations, a combination which roughly offset each other.

26


Corporate Strategy Implementation & Challenges Our high level corporate strategy of growth, efficiency and best practices continued to guide our operational strategy in our quest to create value. On the growth side, the primary focus was on ensuring the sustainability of future coal production and sales organically by increasing reserves through mine plan reviews and evaluating coal price assumptions. At the same time, we pro-actively searched for acquisition opportunities that are a good fit within Indonesia. Various potential assets are under consideration. Going forward, the dedicated Business Development team continues to search for suitable acquisition targets. In terms of efficiency, our target was to improve the efficiency and productivity of existing operations through comprehensive initiatives that apply to our operations, our partner contractors, our own human resources, and our customers. To this end, business process improvements continued to be made in several areas that we have identified as being priorities towards improving our performance, one of them being contractor management. Amongst them was the P2P (Procure to Pay) initiative, which aimed to streamline, standardize, and automate the procurement process all the way to final payment, for better accurac y, transparenc y, lead time, and cost savings. A number of energy management measures were also put into place to reduce the impact of rising fuel costs, which adversely impacted all coal producers. Innovation continued to be a focus, among others through our KOMPAK employee working groups one of which won a Excellent Medal and “Best Performance” award at the International Quality Convention Circles in Japan. The implementation of best practices was targeted in all areas, towards our vision

of becoming a world-class company. Initiatives included improvements in the health and safety scoring components of the Contractor Management System (CMS) which comprehensively measures the performance of contractors and the further development of good corporate governance (GCG) policies as outlined below. Steps were also taken to further safeguard the welfare and wellbeing of the environment and local communities. All ITM mine sites are in compliance with regulatory standards and several of our initiatives, such as a long term biodiversity study that we are running, go beyond what is required in a reflection of our commitment to being an ethical good corporate citizen. As part of our efforts to achieve strong performance, we also focused on ensuring the welfare and development of our own people, including through a new e-learning initiative in 2011.

GCG Implementation & Community Development In 2011, we advanced as planned to Stage 2 of our three stage GCG Implementation Roadmap towards becoming an Ethical Good Corporate Citizen as various important initiatives were implemented towards strengthening our GCG. Notably, an Independent Whistle Blower Center administered by an external party was created, whose reports will be accessible only by an Ombudsman chaired by the Chairman of the GCG Committee, with the President Director and Corporate Secretary as members. We also upgraded the Compliance Committee function, whose role was to help facilitation of compliance at the mine sites, to the status of a Compliance Division. Our efforts were recognized by a number of GCG awards as outlined in the Awards section of this report. In addition, the annual Integrity Retreat, which is attended by Assistant Vice Presidentlevel employees and up including the President Director, achieved its objectives of

B usiness R eview

Outlook and challenges for 2012 ITM can look forward to a number of exciting developments in 2012. PT Bhar into Ek atama is projec ted to begin production and output from PT Kitadin( Tandung Mayang), which resumed production in the second half of 2011, is also expected to increase. This together with the various companywide business process improvements that were implemented in 2011 have positioned the Company in a good place to handle the challenges ahead. ITM is not immune from the threat of rising fuel prices, regulatory changes, weather, and a slowing global economy, which continue to pose twin threats to the coal industry in 2012. However, our reputation for high quality service and premium product should help to maintain our robust customer base and support our sales even in the face of a global slowdown. In addition, our strong GCG system and good environmental record adds value to our reputation as a company.

synchronizing senior management’s views on how to embed of Banpu Spirit values and strengthening their commitment to do so, a commitment which we hope will be passed down to their team. In parallel, mine site communities experienced measurable benefits from our Community Development programs, with the businesses of various individuals and working groups fostered by ITM flourishing in 2011 with measurable progress made towards the end goal of

self-reliance. It is worth noting that some of these business activities, namely cassava and fish farming, took place in post-mining areas, demonstrating the high standard of environmental reclamation that we have achieved. ITM continues to do all we can to foster harmonious relationships with surrounding communities and other partners, for mutually beneficial association. For more detail, please refer to the Community Development section of this report.

In closing, our deepest thanks go out to Mr. Aphimuk Taifayongvichit, who stepped down from the Board of Directors at the Annual General Meeting of Shareholders for financial year 2010, for his many years of contributions to the Company. Joining us as a Director was Mr. Hartono Widjaja, to whom I wish to extend a warm welcome. I also wish to thank the Board of Commissioners and shareholders for their support, and to recognize the hard work and team spirit of ITM’s people that made our achievements in 2011 possible.

Somyot Ruchirawat President Director


27

Sales and Marketing Coal sales grew for ITM in 2011 as world demand growth remained steady despite the slowing global economy. Chinese demand was uneven but greater than expected, especially towards the end of the year while world coal production was fairly normal, with Australia having largely overcome the effects of storms and floods from the previous years. ITM’s coal was sold to a wide range of customers, from countries looking for

high quality coal due to strict pollution standards such as Japan to the lower quality Chinese market. In total, the ITM sales team proactively sold 24.7Mt in 2011 to make net sales of US$2,381.9 million, a 12% rise in sales volume but a 45% improvement in sales revenue over the 22.1Mt sold at US$1,644.7 million in 2010. The majority of our sales continued to go to East Asia, with China and Japan as the biggest buyers. Our sales team successfully

continued to make inroads into the growing Chinese market and for the second year in a row, China recorded increasing share in line with the increasing total imports by China compared with 2010, firing its position as one of our biggest customers. At the same time, we nurtured our existing customer through pro-active sales efforts, aided by a company-wide integrated logistics and quality control system which allows us to blend our coal to meet customer specifications.

ITM Sales and Average Selling Price: Year

Volume (Mt)

Average Selling Price (US$/ton)

2011

24.7

97.1

2010

22.1

74.9

2009

21.0

71.5

In parallel, we continued ITM’s premium image as a reliable producer in customer eyes, and monitored coal price trends in order to optimally structure and price our coal contracts.

Destination Country

Percentage of Total Sales

2011

2010

2009

China

5.8

5.1

3.1

23%

23%

15%

Japan

4.1

4.6

4.2

17%

21%

20%

Taiwan

2.0

2.4

2.6

9%

11%

12%

South Korea

1.4

1.8

0.6

5%

8%

3%

Hong Kong

0.9

1.2

0.9

4%

5%

4%

Thailand

1.7

1.5

2.0

7%

7%

10%

Malaysia

1.3

1.1

0.9

5%

5%

4%

Philippines

1.3

1.1

1.8

5%

5%

8%

Indonesia

2.1

0.5

1.3

9%

2%

6%

South Asia >>

India

2.3

0.9

2.1

9%

4%

10%

Europe >>

Italy

1.8

1.8

1.4

7%

8%

7%

-

0.1

0.1

0%

1%

1%

24.7

22.1

21.0

100%

100%

100%

East Asia >>

South-East Asia >>

Others TOTAL

28

Sales (Mt)


2011

2010

2009

B usiness R eview

Global Coal Market of the year as major buyers continued delayed their purchase due to high coal prices. The market is expected to be more balance in the second half as Chinese and Indian buyers are expected to come to the market.

Thermal coal import demand is predicted continued to grow in 2012, driven by China and India. While European market is expected to remain stable due to continued debt crisis. On the supply side, we expected high growth of Australian export due to the completion of its infrastructure and ports. While Indonesia export is expected to continue to grow due to lower rainfall. Coal market is expected to oversupply in the first half

The global market in traded thermal coal is expected to show substantial growth. Asian demand accounted around 70% of total world demand. Asian consumers continue to drive demand with increasing power generation capacity and utilization rates especially China and India. GDP growth rates in developing Asian economies have outpaced those of the more mature Atlantic basin economies and exceed the global average.

Historyical of world seaborne thermal coal import

Indonesian Coal Market

Historical800 Of WorldHistoryical Seaborne Thermal of world seaborne thermal coalCoal import Import Historyical of world seaborne thermal coal import

800 700

800

700 600

Million Tonnes

300

2011

2011

2010

2009

2008 2010 2008

2007 2007 2009

2006 2006 2008

2007

2005

2004 2006

2003 2005

2011

2010

2009

2005

2004

Source: Wood Mackenzie and Marketing, Sales & Logistics Analyst, Banpu 2003

2000

2004

0

2002

Asia

2000

0

Eropa

Asia 2001

100

Europe

0

2003

100

100

2002

200

EuropeAmerika Selatan South America Asia Amerika Utara North America

2000

200

Australasia

200

2002

300

300

2001

400

400

Africa

Australasia South America Afrika North America Africa

400

500

500 juta ton

Million Tonnes

500

600

600

Australasia

2001

700

Source: Wood Mackenzie and Marketing, Sales & Logistics Analyst, Banpu Source: Wood Mackenzie and Marketing, Sales & Logistics Analyst, Banpu

Historical Of World Thermal Coal Exports By Countries Historical ofSeaborne world seaborne thermal coal exports by countries 800 700

800

600

600

400

500

300

400

200

300

South AfricaRussia

100

200

Colombia Australia

0

100

Polandia

Poland

USA

China

South Africa

USA

Colombia

Cina

Amerika Serikat Afrika Selatan Kolombia

100

2000 0

2000

2001

Rusia

Russia 2001 2000

2002

2002 2001

2003

2003 2002

2004

2004 2003

2005

2005 2004

2006

2006 2005

2007

2007 2006

2008

2008 2007

2009

2009 2008

2010

2010 2009

Australia

2011Australia

2010

2011

Indonesia

Indonesia

Indonesia

In 2012, we estimated continued growing of coal production as big players plan significant increase their production while small producers also continued increased its output but most of the increase is expected to be lower quality coal. Domestic demand is expected to grow significantly as 3,351 MW of new power plants are expected to start.

2011

Thermal Coal Export Price FOB Newcastle Thermal Coal Export Price FOB Newcastle

US$/ton 250 200 150 100 50

Jan-12

Sep-11

May-11

Jan-11

Sep-10

May-10

Jan-10

Sep-09

May-09

Jan-09

Sep-08

Jan-08

May-08

Sep-07

Jan-07

Newcastle Export Index

May-07

0 Sep-06

0

Venezuela

Venezuela China

May-06

200

Lain-lain

Rest of the world Poland

Jan-06

300

Venezuela

700

Sep-05

400

Rest of the world

May-05

500

800

500

Jan-05

Million Tonnes

600

Million Tonnes

700

Historical of world seaborne thermal coal exports by countries Historical of world seaborne thermal coal exports by countries juta ton

Indonesian coal production in the past year grew significantly with an estimated production of 379 million tones, an annual growth rate of 14%. The main driver is a long dry weather and an increased number of small producers which supported by new mining law. Domestic demand was estimated at 70 million tones, increased around 17% which driven by new power plants under government crash program. Indonesian coal export was estimated at 309 million tons in 2011, an increase of 14% from the previous year. Mahakam bridge collapse in November 2011 has a minimal impact to coal export.

Australia-Japan reference price

Source: Energy Publishing


29

Operational REview Mining Review ITM presently owns six concession areas: four in East Kalimantan province, one located in both East Kalimantan and Central Kalimantan province, and one in South Kalimantan province. Of these six sites, five are currently in production, namely those held by PT Indominco Mandiri, PT Trubaindo Coal Mining, PT Jorong Batubara Greston,

PT Kitadin (Embalut) and PT Kitadin (Tandung Mayang). The sixth site, held by PT Bharinto Ekatama, plans to go into production in the 2012. Total production in 2011 continued to grow, producing 25.0Mt compared to 22.0mt in 2010. PT Indominco Mandiri produced 14.8mt or 59% of all ITM

production, PT Trubaindo Coal Mining contributed 7.1Mt or 28%, PT Kitadin (Embalut) produced 1.3Mt or 5%, PT Kitadin (Tandung Mayang) produced 0.4Mt or 2%, and PT Jorong Barutama Greston produced 1.4Mt or 6%.

Production* PT Indominco Mandiri

2011 (Mt)

2010 (Mt)

Change

14.8

14.3

3%


7.1

5.6

27%


1.3

1.2

8%


0.4

-

-


1.4

0.9

56%

25.0

22.0

14%

TOTAL (Mt) * PT Bharinto Ekatama will begin production in 2012.

To support the above PT Indominco Mandiri and PT Trubaindo Coal Mining have revised their production capacity in their feasibility study for higher production. As of 31 December 2011, it was estimated that total ITM coal resources (proven and

30


probable) stand at 1,626.7Mt, while our total reserves stand at 416.9Mt based on external and internal expert surveys. For the purpose of becoming more efficient and increasing productivity going forward, PT Indominco Mandiri and PT Kitadin (Tandung Mayang) operations

are being grouped into Bontang Group, while PT Trubaindo Coal Mining and PT Bharinto Ekatama operations are being grouped into Melak Group. PT Kitadin (Embalut) and PT Jorong Barutama Greston remain standalone operations.

B usiness R eview

Mining Operation Reports Production was hampered by heavy rainfall, but by bringing in additional equipment and working efficiently, ITM successfully achieved target production.

PT INDOMINCO MANDIRI PT Indominco Mandiri has a concession area of 25,121 hectares that is divided into the West Block and the East Block. The coal is trucked from mine stockyard to port stockyard over 35 kilometers. PT Indominco Mandiri also operates three crushing plants, Bontang Coal Terminal (BoCT), Bontang Coal Laboratory for quality analysis, and the Bontang Power Plant.

Operations Ports

ROM stockpile

Part of the Bontang Coal Terminal (BoCT) development, which was successfully completed in 2010, proved its worth in 2011 as PT Indominco Mandiri enjoyed gains from more efficient loading time and the possibility of direct and indirect loading from barge to vessels instead of going through stockpile, thus improving loading flexibility at our terminal. A study was conducted to further expand the existing port capacity and construct additional new barge loading facilities at the BoCT.

Stockpile Crusher

EAST BLOCK

Bontang City

WEST BLOCK

Total production for PT Indominco Mandiri in 2011 stood at 14.8Mt, up from 14.3Mt in 2010. This was primarily due to increased output from the East Block, which rose to 7.1Mt, 2.9Mt higher than output in 2010, while output from the West Block fell to 7.7Mt down from 10.1Mt in 2010 in line with our strategy to optimalize reserves in the East Block. Production in the first half of the year was lower than target due to continuing rainfall in the mine area. However, this was offset by good weather conditions in the second half of the year, and the addition of mining equipment from contractor.

Hauling

Mine Stockyard

35km Asphalt haul road

Santan River

Port stock yard

Sea Conveyor 2,5km Post Panamax 95,000DWT

Inland conveyor 4km

0

2

4

6

8

10 km

Gains were also made from the 2x7MW Bontang Coal-Fired Power Plant, which was completed in the previous year. The Power Plant, which was designed to promote scheduled and profitable growth for ITM by dependence on costly outside energy sources, went into operation in 2011, helping to supply electricity needs first for the BoCT operation and the East Block, and the West Block at a later time. Energy costs were reduced somewhat but the Power Plant is not yet at full capacity and therefore energy savings are not yet optimal.

In the East Block, a study on an In-Pit Crushing Conveyer (IPCC) system was begun and another study on expanding mine stock capacity and the washing plant is still ongoing.


31

PT TRUBAINDO COAL MINING PT Trubaindo Coal Mining’s concession area of 23,650 hectares comprises the North Block and the more recently opened South Block. The coal is trucked from the mine stockyard almost 40 kilometers to the port stockyard close to Bunyut Barge Loader, then barged either to Bontang Coal Terminal (BoCT), Balikpapan Coal Terminal (BCT), or directly to buyers. Total production for PT Trubaindo Coal Mining in 2011 rose to 7.1Mt up from 5.6Mt in 2010. Heavy rainfall in the first two quarters negatively impacted output, but PT Trubaindo Coal Mining was able to make up for it in the second half of the year especially as the existing contractor brought in additional equipment, and one new mining contractor was added. In addition, improved water management techniques supported higher output.

Bunyut Port

Operations Ports

Product coal conveyor, stacking, stockpile

Hauling Stockpile

40km Mine to port

Crusher Barge Port

Kedangpahu River

EAST KALIMANTAN 0

5

10

15

PT. TRUBAINDO

20 25 km

North Block

ROM stockpile

The collapse in November of the nearby 720 meter-long Tenggarong public bridge which spans the Mahakam River caused temporary disruption for approximately two weeks, as the blocked river prevented coal from being

barged to loading points. However, this issue was soon resolved and production resumed as normal before causing disruption to customers through rescheduled shipments.

Bunyut Port

PT BHARINTO EKATAMA PT Bharinto Ekatama has a concession area of 22,000 hectares. It is located adjacent to PT Trubaindo Coal Mining and shares the same road infrastructure for transportation. Its coal will first be trucked to the stockyard close to the Bunyut Barge Loader at PT Trubaindo Coal Mining, then transported by barge to the loading point. The site has been cleared and all major infrastructure was completed within the site, including a crushing plant construction which was already at the commissioning stage, and a port stockyard facility ready for use. A mining contractor has been selected, and all required mining equipment has been brought to the site in readiness to begin production. Production will commence in 2012 pending the completion of the hauling road to the stock yard at PT Trubaindo Coal Mining.

32


Product coal conveyor, stacking, stockpile EAST KALIMANTAN 0

5 10

15

20

Mahakam River 40km Mine to port Kedangpahu River

25 km

PT. TRUBAINDO ROM stockpile Bharinto 60km south west of Trubaindo North Block

South Block 2 (Biangan) PT. BHARINTO

North Block South Block 1 (Dayak Besar)

B usiness R eview

PT KITADIN

TD. MAYANG

PT Kitadin (Embalut) and PT Kitadin (Tandung Mayang) are operated by PT Kitadin, and have respective areas of 2,973 hectares and 2,338 hectares.

Operations Ports

Pre-stripping activity began in the first quarter of the year and production resumed in the third quarter as planned,

Stockpile

ROM stockpile

Crusher

EMBALUT 5km Mine to port Embalut Port Mahakam River

PT Jorong Barutama Greston performed above expectations, producing 1.4Mt in 2011, compared with 0.5Mt in 2010. Supporting factors included better than expected weather conditions and good contractor performance in utilizing their equipment capacity supported output. The Stripping Ratio was adjusted to match remaining reserves and to keep up with the current mining sequence.

Samarinda

EAST KALIMANTAN

0

2

4

6

8

10 km

to Muara Berau

to Muara Jawa

Balikpapan

experience allocating and managing its equipment within its working area. In total, the site produced 0.4Mt for the year, a small but promising contribution.

after a hiatus of several years during which feasibility studies were done to reassess the site’s productivity. The site was able to ramp up operations quickly as PT Kitadin (Tandung Mayang) already had

PT JORONG BARUTAMA GRESTON PT Jorong Barutama Greston’s concession area covers 11,478 hectares. The coal it produces is trucked 20 kilometers to the ROM stockyard to be crushed, which is close to the port stockyard and barge loader facility.

Bontang City Bontang Port

• PT Kitadin (Tandung Mayang) PT Kitadin (Tandung Mayang) operates its mining concession as well as acting as a contractor to PT Indominco Mandiri.

IMM EB

Hauling

• PT Kitadin (Embalut) In 2011, PT Kitadin (Embalut) achieved higher than expected output at 1.3Mt compared with 1.2Mt in 2010, despite difficult mining conditions caused by overburden hard materials and mud encountered in the first half of the year. Two mining contractors brought in additional equipment in the second half of the year, supporting the increase in production.

IMM WB

0

5

10

15

20

25 km

Pelaihari

Haul road 20km

Jorong Operations Barge Port Hauling Stockpile

Coal terminal

Pacific Ocean


33

Contractor Management System Contractors play a major part in determining our success and productivity. Over 80 percent of direct mining activity is carried out by contractors. As such, ITM views our contractors as partners in our business.

in a consistent manner. It assists the realization of business goals, including commercial, technical, quality and environmental, health and safety goals. The system was developed based on mining contractor management

Consequently, we do our best to match the contractor’s size (small/medium vs. big) to match each site’s requirement for maximum effectiveness. Contractors are mostly hired for three-year contract periods, giving them sufficient time to earn back their investment at ITM and familiarize themselves with ITM’s procedures and systems, for best performance.

In 2011, CMS switched focus to scoring contractors more holistically on their performance, using HSE (Health, Safety, Environment) benchmarks to measure the performance of Contractors and their total contribution to ITM.

We also make it a priority to hire and work with small/medium Contractors where feasible despite the fact they usually require more technical assistance than large contractors. This supports transfer of knowledge, local empowerment, and job creation, in line with our aim of sustainability and local development. The performance of the numerous contractors working at our mine sites is tracked using CMS (Contractor Management System). CMS is a performance-focused system, deployed throughout all ITM site operations, that seeks to manage mining Contractors

benchmarking studies from selected leading mining companies, both from overseas and from Indonesia. The system was then tailored to ITM’s needs by adopting and integrating the best management practices from the benchmarking study with our own inhouse mining contract management practices. This integration was carried out through a system streamlining process that was attended by all of our in-house mining experts and all site management teams.

The principle objective of CMS is to enhance the company’s mining contract management practices with the goal of optimizing outcomes for the Company and Contractors. It begins with good budgeting and mine planning, risk assessment and mitigation, clear scope of work, and stringent Contractor selection. It is followed by continuous monitoring of, and support to, our contractors throughout the contractor’s contract period, up to the end/termination of the contract. Uniform implementation of this CMS system creates a standard framework by which to measure contractors’ performance. The CMS system also allowed us to select the contractors with the best performance in 2011, based on their safety and quality record overall. Major changes were made to CMS in 2011. Previously, CMS focused on compliance with regulatory and operational control, by scoring contractors on ten compliance-related elements. In 2011, CMS switched focus to scoring contractors more holistically on their performance, using HSE (Health, Safety, Environment) benchmarks to measure the performance of contractors and their total contribution to ITM. This HSE system includes policy, planning, implementation, check and monitoring, and management review benchmarks with aim of encouraging continuous improvement. A yearly Executive Mine Contractor Meeting is held where the Contractor Owners, Project Managers and/or Directors are invited to share knowledge and best practices, and encourage communication. This year’s meeting was held in Yogyakarta, at which contractors’ 2011 performance was reviewed. For the second year in a row, the Contractor Environment, Health and Safety (EHS) Management system continued to be used as a benchmark within the larger CMS Corporate Program, reflecting our continued evolution towards best practices.

34


B usiness R eview

Coal Quality Management One of our major goals is to keep our customers loyal and strengthen our relationships with them. Besides keeping revenue streams stable, an added benefit of making customer relationships less price sensitive is that we can demand a premium for our product. In order to do so, we need to make sure that customers get what they have purchased. As part of our drive to improve customer service, we periodically undertake in-depth analysis of customer needs and requirements, and adjust our service accordingly. The top four priorities of our customers are, in order of importance: 1) coal quality, 2) competitive price, 3) reliable supply of product, and 4) prompt and flexible shipping schedules. These customer priorities were identified through in-depth customer research activities carried out under the Marketing Department’s CRM program. Our activities therefore focus on good quality control, keeping the coal clean, and also on custom-blending to suit customer requirements. To ensure

In 2011, we focused particularly on improving the cleanliness of our coal through a multi-pronged approach.

Coal Quality, our coal supply chain is strictly controlled and monitored from extraction to delivery all the way to our proprietary stockpiling and processing facilities, for good quality control. With regard to blending, we are supported by our ability to blend coals from different pits, site operations, and coal terminals. On average, around three-fourths of our coal is blended to fulfill customer specifications and optimize pricing. In 2011, we focused particularly on improving the cleanliness of our coal through a multi-pronged approach. First, we began routine cleanliness inspections of stockpiles. Second, we added screening systems at the coal stockpiles, at the barges, and when cargo is being loaded onto the ships. This was supported by close coordination with all parties including the ship officers, surveyors, and ITM’s own people, as

stated in a mutual Standard Operating Procedures (SOP). In order to give customers more quality assurance, the Bontang Coal Laboratory, which is located by the shipping port, hosts three major independent Indonesian surveyors. Customers may choose which surveyor they want to perform an evaluation of their coal shipment. All shipments are also examined by lab tests prior to shipping. Before the coal is loaded, a report is created for each vessel which can be accessed online by management. This independent verification helps us to improve and monitor our product, and improves customer confidence through quality assurance. As a result, customer satisfaction improved, strengthening customers’ loyalty to us. Customers also welcomed our technical support services in coal utilization. Its role is to optimize utilization of our various products. We visit customers regularly, assist them with any coal utilization issues, and share knowledge regarding new coal utilization technologies and products. These services have strengthened demand for our product and improved customer satisfaction, with the end result of making us more competitive in the industry.


35


To minimize the negative impacts from unforeseen disruptive events or natural disasters, we have developed an integrated process to identify potential threats and build frameworks for an effective emergency response. Business Continuity Management (BCM) is the framework for establishing processes and resources in order to ensure the continued achievement of critical business objectives at the time of emergencies or crises. In line with analysis from the Business Continuity Institute (UK), we have developed a BCM strategy with the following key priorities in any outage, emergency or crisis situation. • Save life by being able to account for people. • Minimize damage to the environment. • Protect assets and information from further damage. • Minimize business interruption. • Minimize financial and legal liability. • Protect or enhance reputation. • Seize business opportunities. These efforts were made to safeguard the interests of stakeholders, our reputation, and value creating activities.

36


Our approach to crisis management is to solve the problem at the lowest level as possible, while keeping channels of information flowing. To comply with regulations and to remain prepared, an Emergency Response Team (ERT) has been established at each site location. The ERT is responsible on site for facilitating awareness, communications and solutions in the case of any crises. Once the situation is evaluated, information and decisions are channeled in accordance with the established BCM framework, i.e. from the ERT to the Emergency Management Team (EMT) in the field and the Incident Management Team, and then escalated to the Crisis Management Team (CMT) at the corporate level (Banpu). At each level, the appointed Person-in-Charge has been previously socialized and trained to be familiar with their responsibilities in such situations. Training and crisis scenario simulations are regularly taken to ensure that key personnel are ready to prevent escalation of any problems. In 2011, BCM infrastructure was further improved and readied in preparation for drills, and BCM Standard Operating Procedures or systems were socialized and implemented at mine sites. In June 2011, a BCM on-line drill was conducted between the Jakarta Office and the Bangkok Headquarters, in order to enhance readiness

B usiness R eview

QUALITY, SAFETY AND ENVIRONMENT

The Quality, Safety and Environment (QSE) Department is responsible for coordinating and overseeing QSE standards throughout ITM. QSE operates using guidelines called QSE Management Standards. The QSE department ensures that good performance is sustained and improvements needed are made. In concrete terms, the goal of the QSE Department is to set up quality management systems for safe and efficient operations, as well as environmental compliance and conservation. The QSE Management Standards are practical guidelines for the achievement of sustainable development, and continuous improvement in QSE performance. By doing so, ITM can also minimize noncompliance risk factors and increase competitiveness. These QSE Management Standards identify, assess and manage the risks to our people, contractors, the environment and our host communities, that arise from all activities undertaken.

Each business unit under ITM embeds their program activities with QSE Management tools, as a long-term strategic driver to corporate excellence. To facilitate and to help supervise the process, QSE officers are positioned on every mine site. The QSE Road Map starts with the fundamentals of good Standard Operating Procedures for QSE aspects. The next step is to meet International Standards such as ISO 9001:2008 for Quality, OHSAS 18001-2007 for Occupational Health and Safety Management, and ISO14001-2004 for the Environment. The third step is benchmarking, for example by measuring the Total Production Management (TPM) effect, and the fourth and final step of the Road Map is the achievement of excellence as recognized by national and international awards.

groups called “KOMPAK”. The close knit atmosphere and small size of these groups is an ideal environment for the testing and development of new ideas in manifestation of our Banpu Spirit corporate values. KOMPAK Groups have won various national and international awards including, in 2011, an Excellent Medal and a “Best Performance” award at the International Convention on Quality Control Circles held in Japan. These achievements demonstrate ITM’s commitment to fostering innovation and ideas from the bottom up, a culture that will help ITM maintain its high quality and competitiveness in years to come.

As part of efforts to maintain continuous improvement, since 2009 ITM has established small employee working


37

Quality

HEALTH AND SAFETY

Three of ITM’s mines have already obtained ISO certification: PT Indominco Mandiri in 2003, PT Kitadin (Tandung Mayang) in 2005, and PT Jorong Barutama Greston in 2008. Efforts were intensified to obtain TPM certification as we focused on improving our production equipment maintenance system. PT Indominco Mandiri achieved The Centre for TPM (CTPM) Australasia Level 2 and PT Kitadin (Tandung Mayang) was upgraded to Level 3, reflecting high levels of efficiency and productivity at these sites. TPM certification at other locations will start once their ISO certification process are completed. The other mines have begun implementing quality systems management frameworks in preparation for certification.

At ITM, health and safety in mining is the Company’s responsibility and a key success factor in achieving operational excellence. The responsibility for setting indicators of health and safety lies with QSE. In order to mitigate the inherent hazardous risks in mining operations, ITM management has proactively improved safety procedures over time. PT Indominco Mandiri as the leading unit began implementing OHSAS 18001:1999 in 2004, and other business units are making progress towards this standard. Each business unit prepares Hazard Identification Risk Assessment and Risk Control documents, before operations commence. Armed with this information, all parties involved in mine operations–employees, contractors and suppliers–are fully aware of both general and specific behaviors which are required or prohibited. The appropriate preventive and corrective actions are then taken.

The Environmental, Health and Safety components of our Contractor Management Sytem (CMS EHS) were developed further to become more comprehensive. Overall, safety has continued to improve from year to year. Injury Frequency Rate declined 68% in 2011 compared with 2010, while Injury Severity Rate declined 17% over the same period.

ENVIRONMENT ITM is fully in compliance with current laws and regulations on the environment. In the spirit of good corporate citizenship, we strive to go above and beyond these requirements. An environmental compliance audit has been conducted regularly by both external and internal parties to identify any potential for nonconformance findings, and to suggest corrections accordingly. To ensure that systems to evaluate compliance are in place, they are reviewed regularly and the results are evaluated, documented and improved as required.

Injury Frequency Rate (IFR)

4.38

2007

0.47

0.19

0.66

2008

2009

2010

0.21 2011

Incident Severity Rate (ISR)

238.71

405.70 0.41

2007

38


2008

2009

153.99

2010

128.39

2011

B usiness R eview

Each business unit under ITM embeds their program activities with QSE Management tools, as a longterm strategic driver to corporate excellence.

PT Indominco Mandiri is already ISO 14001:2004 certified for its environmental standards. Having seen the benefits of a comprehensive framework for both planning and operational components, ITM seeks to implement the same approach for all our mines in the near term. In 2011, ITM achieved 100% compliance with national PROPER requirements for the environment, indicating that we are in compliance with the Environmental Ministry’s standards for Air Quality, Water Quality, and Hazardous Substances and Poison (B3). Local level achievement was even better, reaching green level PROPERDA status. The Mining Department of Indonesia also conferred an award on all ITM subsidiaries for Mine Environment Management (Pengelolaan Lingkungan Pertambangan). In line with our ongoing commitment to good corporate citizenship, ITM has established a process for mine reclamation that begins well in advance of productions and extends to three years after mine closure. ITM has submitted Mine Reclamation and Mine Closure documents to the government

as required, comprising detailed plans and activities on plans to achieve sustainable environmental rehabilitation through annual reclamation projects, posts guarantee bonds in compliance with the law. The main Environmental Impact Analysis (EIA) documents are the Environment Management Plans (RKL) and Environment Monitoring Plans (RPL). Upon approval from the Government, these studies serve as the basis for evaluating environmental quality standards and for the reclamation of areas that have been impacted by mining activities. All subsidiaries have therefore prepared individual environmental impact and aspect identification studies. Subsidiaries also have reclamation standards departments to handle seedlings and reforestation. All subsidiaries are in full compliance with existing environmental regulations.

PT Bharinto Ekatama Long Term Biodiversity Study The non-required biodiversity study that was implemented last year together with the Purwodadi Botanical Garden continued in 2011. Seedlings gathered in 2010 were nurtured at the Purwodadi Botanical Garden with good results, and

unique species in the area have been identified for preservation.

The study, which will be replicated in other sites, evaluated the characteristics and variety of the vegetation in the area of our mine site including orchid species, the characteristics of the ecology, the estimated carbon trapped by the vegetation, and how local communities can exploit the potential of their environment.


39

ENERGY MANAGEMENT

In line with our corporate strategy of Growth, Cost Management and Best Practices, as well as our goal of becoming an ethical corporate citizen, ITM has created an Energy Management and Climate Change program. The purpose of our Energy Management program is to reduce energy usage for current levels of productivity, keep energy usage the same while productivity goes up, or a combination of both. By doing so, we hope to proportionally reduce CO2 emissions to the atmosphere, as energy from fossil fuel conversion is a major source of greenhouse gas, namely CO2. Thus, decreasing energy usage is not only good for the environment and future generations’ quality of life, but it will also improve our bottom line and raise our productivity. To achieve this goal, we established an Energy Committee, led by the President Director as the Chairperson, which has broad-ranging participation. The Committee established a short term three-year target of reducing energy consumption and a long term ten-year target of decreasing energy consumption, which will lead to optimum minimization of CO2 emissions. To realize this target, a comprehensive ten-step approach to Energy Management has been adopted that involves aspects of Leadership, Understanding, Planning,

40


People, Financial Management, Supply Management, Operations and Maintenance, Technology and Innovation, and Measurement and Verification. Reward programs have also been established at the individual and department level for improvements in energy usage, to motivate and reinforce energy-saving behavior and actions. Together with the business unit owners, the Committee sets energy targets for each unit, with a focus on operational units as the main generators of CO2. In 2011, each mine site signed onto our energy targets. The Mine Heads, as the project owners, report directly to the Energy Management Committee on a

monthly basis. The actual initiatives are coordinated by the managers on the sites, who work with the contractors and other staff to achieve these goals. For example these contractors’ fuel consumption is now tracked and monitored. Based on the energy usage patterns that are recorded at each site, decisions can be made to conserve energy and drive for better energy usage. For instance, we can decide to upgrade our technology to less fuel-hungry versions, work around peak usage times, buy energy from other sources, or decide to build our own sources if more convenient. The end result is to make our energy consumption more efficient relative to productivity.

ENVIRONMENT emission, safety

PRODUCTION productivity

ENERGY efficiency

B usiness R eview

HUMAN RESOURCES

Recognizing that high quality Human Resources (HR) are essential for success, ITM places high importance on the role and function of our HR Department in helping to attract the best people, and to guide them perform efficiently and well. The recruitment of geologists and engineers is carried out through Geologist and Engineer Trainee (GET) program, a comprehensive program blending formal theory and practical application onsite. This program has been held since 2008 to attract and train potential university graduates majoring in geology and mining engineers as well as certain other technical subjects. The GET program is meant to bring in and retain top industry talent, creating future leaders and professionals. Successful applicants are enrolled in a challenging one year training program at ITM or its

subsidiaries. Upon successful graduation from the GET program, graduates will become permanent employees at ITM or its subsidiaries. ITM also grants scholarships in cooperation with Gadjah Mada University, the Bandung Institute of Technology, Mulawarman University and the University of National Development (UPN Veteran). Supporting employees to continuously broaden their skills and competencies, HR provided various types of training for employees which were selected based on competency gap, business needs, and the ITM Training Roadmap. Over the course of 2011, ITM continued to invest in improving employees’ competencies through various training initiatives. In 2011, HR focused on creating and uploading e-learning modules, including an online English learning

course and safety module. The e-learning modules, which are competency-based, are provided in English and Indonesian, and are the beginning of a multiyear bilingual e-learning initiative. By placing them online, employees are able to learn at their own pace and take responsibility for their own skill development, for more efficient learning especially at remote sites. The modules will offer progressively more difficult subject matter, allowing for a natural progression. Within ITM, to improve performance, the Key Performance Indicators (KPI) that had been established top-down from the President Director were reviewed twice in 2011 as usual, to make sure that the KPI are in alignment with the Company’s business strategy and targets, and these KPI are communicated and are also available online at any time. All


41

employees are measured against these KPI benchmarks. A Career Management System has been established that helps employees to guide and maximize their career paths. Through e-competency assessments employees are able to measure their competency gaps with regard to their desired career path and development plan. A top-down motivational communication forum was held quarterly in Jakarta. The purpose was to strengthen communication between management and subordinates. In parallel, HR nurtured good relationships with the labor unions from all sides, holding quar terly bipartite discussions during which all issues were discussed to ensure a smooth and positive relationship.

ITM is committed to ensuring the welfare of our employees by providing a supportive and healthy working environment, as well as competitive compensation and benefits. It is our view that such conditions will ultimately improve productivity and performance as well as benefiting employees and helping ITM to attract and retain employees. HR also continues to ensure that ITM is in compliance with applicable labor laws, in line with government regulations, including for expatriate formalities. The yearly collection of Integrity Commitment pledges from employees, in which they agree to abide by the company’s Code of Conduct, were carried out as part of the drive to encourage the Banpu Spirit amongst employees. HR also reminded and socialized ITM corporate shared values and other important information to

employees through workshops, seminar, formal and informal events, including a quarterly bulletin called Selaras. The communication channels used included posters, notices, and communication forums, an interactive intranet portal, and the online HR Information System (HRIS).

As of year end 2011, ITM and its subsidiary companies totaled 3,335 employees, 4% more than in 2010.

HR Framework Vision - Mission - Philosophy Business Strategy

Culture Strategy

Organizational Design

Organizational Development Job Design Competency

Man Power Planning

Recruitment, Selection, Placement

Learning & Development

Performance Management

Reward Management

Career Management

Industrial Relations

HRIS Communication - Alignment - Skill - Accountability - Measurement

42


Separation Management

B usiness R eview

ITM and SubsidiarY Employees As of 31 December 2011




128 Employees

810 Employees

687 Employees

PT Bharinto Ekatama


PT Kitadin

94 Employees

281 Employees

1,335 Employees

TOTAL EMPLOYEES 3,335 Employees

Number of Employees by Level oF EDUCATION As of 31 Dectember 2011 Advanced Diploma =1

Diploma = 154

Total: 3

=2

Senior High School

= 59

Doctorate

Bachelor Degree

Total: 1

=1

= 510

Total: 213

Total: 625

= 115

= 175 = 21

D1

Total: 1,618

Elementary School Total: 196

= 1,559

Junior High School

= 59

= 26 Total: 38

= 12

= 246

D2

Total: 254

Other

=8 = 285

= 12

Total: 15

=3

Master Degree = 45

Total: 317

= 32 Total: 55

= 10

Total:

3,014

321

Legends:

20 male

20 female

Grand Total: 3,335 Employee


43

Information Technology Information Technology (IT) is an essential part of our drive to be a worldclass company. The main focus of the IT department is to provide continuous access to world class applications including Enterprise Resource Planning (ERP) solutions and Intelligent Mining Solutions packages. These packages provide decision-makers at all levels with timely automated reports and individually tailored reports, all the while coordinating and collating information from multiple remote locations. The IT department covers five interrelated areas: IT Services, IT Infrastructure, System and Security Management, Database Management and Business Software Solutions. Together with Banpu head office, the IT department has put together a set of standard parameters and standardized the system struc ture for a robust and strong system. ITM’s network architecture is capable of handling satellite communications including live video conferencing, as well as high data transfer needs, at all operational sites, and to handle IT needs at different locations including mine sites, barges, sea ports, and offices.

44


In 2011, IT pushed to streamline the Company’s administrative capabilities as part of ITM’s objectives of cost control. Through IT-enabled online approval and virtual office capabilities, employees who need to travel frequently can conduct business in a seamless and hassle-free manner. We further minimized travel needs and costs through video communications. Our network architecture is constructed to advanced satellite communications including live video conferencing, as well as high data transfer needs, at all operational sites. Our network handles IT needs at different locations including mine sites, barges, sea ports, and offices. The IT department plays a critical role in disaster recovery. It is imperative that data is recoverable. As such, the IT department coordinates with the Disaster Recovery Center to plan for and minimize any negative effects due to any extraordinary events. Most critical are the continuing utilization of the ERP and Intelligent Mining Solution packaging and the ability to maintain communications. Regular simulation drills are conducted that simulate various scenarios. The IT department

is currently satisfied that our response time to full recovery is within the global norm of 24 hours. In the interests of developing our in house staff, the IT department holds at least one comprehensive training course per year, bolstered by many inhouse technology updates throughout this year. Reflecting our commitment to reducing our environmental impact, ITM has also pioneered a Green Data Center to reduce system energy demands and share other environmentally friendly technologies within the companies. Including the office of the Corporate Secretary and Community Development, five separate but interconnected communications departments to help collect various opinions and help to keep people informed of ITM’s operations, as well as nurture external relations. The offices of the Corporate Secretary and Community Development are respectively described in detail in the GCG Section and CSR Section of this report as their functions overlap with these objectives.

B usiness R eview

COMMUNICATIONS Corporate Communications (CC) Corporate Communications (CC)’s objective is to strengthen the image and good reputation of ITM, through sustainable development and social responsibility outreaches, to build public trust and brand equity. CC carries out this objective through communications initiatives and by building relationships.

External Communications CC provides a number of external communication services. Foremost of these tasks is media relations. CC has been assigned to widely publicize timely corporate information and performance data via various media. CC plays a key role in broadening awareness of ITM’s many program contributions to communities and society beyond the immediate vicinities of mining sites. Details of these programs are available in the CSR section of this report. Through press releases, exhibitions, public advertisements, the publication of brochures and event advertising, ITM has been able to increase brand awareness to reflect ITM’s position as one of the largest coal companies in Indonesia. CC helps increase public trust through maintenance of the company website: www.itmg.co.id and through facilitation of the company Annual Report. CC also provides top management with workshops to prepare them for crisis media handling.

Internal Communications CC and HR plays a central role in expanding internal awareness of corporate values and keeping all employees informed of corporate

actions. In 2011, we once again socialized the corporate identity and brand guidelines internally across all sites. In addition, in our Brand Management function, CC is responsible for keeping internal branding consistent for the dissemination and socialization of brand guidelines across all sites, including for subsidiary companies. Another duty that falls to CC is involved in maintaining the Corporate Intranet, which provides broad access to news throughout the group. News releases are overseen by CC although input is also generated by all departments. This clearing house of information provides interactivity through the website.

In dealing with crisis situations, CC plays a unique role, giving guidance and controlling the information flow from internal parties to external parties including media. We carry out exercises and crisis simulations every year to refresh our abilities. In the case of a crisis, a Crisis Communication Team will immediately be formed at the site. Coinciding directly with quarterly analyst meetings, CC holds a Quarterly Communication Day for employees to get updates on recent company performance news, highlight exceptional efforts and achievements and share best practices from mine sites.


45

Investor Relations Investor Relations is primarily in charge of shareholders, fund managers, investors and financial analysts with regard to the Company’s financial information. As part of its efforts in accountability and transparency, the Investor Relations Department proactively communicates the Company’s financial performance and ensures that required information is provided to relevant parties in a timely manner. Analyst Meetings were conducted on a quarterly basis. Information is also posted on the company website in both Bahasa Indonesia and English. The Investor Relations department also conducts regular and ad hoc updates to help investors keep abreast of any new developments.

46


Activity

Frequency

Analyst Visit

78 times

Conference Call

8 times

Analyst Meeting

4 times

Roadshow

6 times

Site Visit

1 time

AGMS

1 time

Public Expose

1 time

B usiness R eview

We initiate coverage of ITMG with a BUY rating, based on: 1) ITMG’s good operations, 2) potentially higher dividends, 3) reserve revaluation, which could lower mine life risk and 4) reasonable valuation.

Nomura: Isnaputra Iskandar 11 January 2011

We expect improved outlook in 2011, as the strip ratio normalizes, while ASP reflect higher coal prices. ITMG has priced nearly half of its volume at US$82/ton (vs US$75/t in FY10), while we’ve assumed a US$115/ton benchmark price (lower than current spot of US$125/t) on the remaining portion, resulting in an FY ASP of US$87/t. Retain Buy.

Deutsche Bank: Cherie Khoeng 25 February 2011

ITMG’s dividend yield of 6.3% in 2011E is the highest in the ASEAN coal sector. While there is no fixed dividend policy, we note that dividend payout ratio has been increasing from 60% in 2007 to 70% in 2009 and 75% in 1H10. ITMG has a net cash position (US$295 mn in 2010) and generates strong FCF (US$288 mn in 2011E).

Goldman Sachs: Nikhil Bandhari 18 March 2011

We recommend BUY at target price of Rp65,025 for Indo Tambangraya. We like the stock due to: 1) rosy earnings outlook with a CAGR of 77% over the next two years; 2) clean balance sheet and strong cash position; and 3) strongest ROE in the sector at 46% and 48% for FY11 and F12, respectively.

ITM is the prime beneficiary of rising spot price due to higher CV coal produced and large exposure to export market (95% for export).

DBS: Ariyanto Kurniawan 12 May 2011

We expect ITMG’s earnings momentum to improve in 2H11 with increased volume (dry weather) and prices. In our forecast, we assume ITMG 1H11’s profit to be 40% of our full-year estimates.

Credit Suisse: Paworamon (Poom) Suvarnatemee 29 June 2011

With high energy coal, a control on costs and no debt ITM is poised to continue generating strong cash flow. Last year the company paid out 75% of earnings as a dividend, above its historical target of 60%. We expect higher dividends are here to stay as parent Banpu adds to its coal portfolio elsewhere. We re-initiate coverage with a target price of Rp56,000 and a Buy recommendation.

CLSA: Jayden Vantarakis 8 July 2011

Kim Eng: Ricardo Silaen 4 April 2011


47

ITMG’s earnings came in at 42% of our fullyear estimates and 43% of consensus which is generally in line with expectations. Given the recovery in production and easing cash costs in 2Q11, we are still confident that our full year earnings forecast of US$205m is achievable. We maintain our forecasts and OUTPERFORM rating with a target price of Rp60,900 implying 13.1x forward P/E. Re-rating catalysts include better-than-expected ASP and the successful execution of the Bharinto and Tandung Mayang mines.

CIMB : Erindra Krisnawan 11 August 2011

The key to ITMG re-rating remains successfully executing M&A and/or special dividends combined with improved investor sentiment towards global growth. ITMG looks cheap trading on 6.7x FY12E PER, versus the sector average of 9.0x and the historic sector average of 12E-13Ex PER. In the absence of corporate activity ITMG is a leveraged play to coal, however acquisitions are key to boost longer term production which we currently expect to peak broadly in 2013.

Macquarie : Riaz Hyder 29 September 2011

Already the most generous dividend payer in the sector, ITM’s policy calls for a 60% payout. With no debt and no real need for cash other than to fund acquisitions, the company has the capacity to increase its payout.

RBS : Trevor Kalcic/Jurgan Usman 30 November 2011

Earnings outlook for 2012 has improved slightly given the higher volume locked in at a favorable price just as coal prices are starting to soften. ITMG’s share price weakness due to macro concerns has also resulted in attractive valuations.

CIMB : Erindra Kristawan 12 December 2011

The company’s 1H11 net income came in at 45.2% to our expectation and 44.9% to consensus’, hence, in line with both our and market estimate for 2011F. We expect the company’s ASP in 2H11 to remain high and expecting US$220mn-US$250mn bottom line in 2H11 period. We maintain our buy recommendation on ITMG, which currently is trading at 2012F PER of 8.7x and EV/EBITDA of 5.3x.

OnixCapital : Bagus Hananto 7 October 2011

GOVERNMENT RELATIONS

48


In addition to maintaining strict compliance with all national, regional and local laws, it is vitally important to keep fluid and effective communication channels open with government

representatives at all levels. To that end, ITM and its subsidiaries maintain personnel dedicated to maintaining such relationships.

Management Discussion and Analysis


M anagement d iscussion an d analysis


MARKET REVIEW & OPERATIONAL SUMMARY Global demand for coal remained steady in 2011 despite the slowing world economy, driven by rising demand from Asia, particularly China where demand surpassed expectations. The outlook for coal going forward is strong as developing countries, especially China and India, rely more and more on coal to meet the power needs of their growing economies. In Indonesia, the prospects of profits to be made have brought many new entrants rushing into the coal sector, therefore the Energy Ministry projects that Indonesian production of coal is set to surge next year. ITM benefitted considerably from these rising prices on top of record production. The Company produced 25.0Mt of coal in 2011, a 3.0Mt improvement over the previous year. Of this amount PT Indominco produced 14.8Mt or 59% of all production, PT Trubaindo Coal Mining contributed 7.1Mt or 28%, PT Kitadin (Embalut) produced 1.3Mt or 5%, PT Kitadin (Tandung Mayang) produced 0.4Mt or 2%, and PT Jorong Barutama Greston produced 1.4Mt or 6%.

Coal Production (Mt)

0.9

0.4

1.2

1.4

1.3

2010

5.6

2011

14.3

Total: 22.0

7.1

14.8

Total: 25.0







51

FINANCIAL REVIEW ITM enjoyed another year of strong financial performance, which was primarily driven by higher coal sales volume and strong price supported by growing China demand for thermal coal, combined with higher production. The financial position of ITM was thereby strengthened, with US$612.4 million of cash at year end and highest ever equity of US$1,080.8 million. Net income more than doubled in a record-breaking performance, reaching US$546.1 million. In addition, ITM was able to finance its operations and investments from internal cash flows without taking on external debt.

• FINANCIAL POSITION Summary Expressed in thousand US Dollars. 2011 Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities Equity Total Liabilities and EQUITY

Total Assets ITM’s consolidated total assets increased by 45% to US$1,578.5 million in 2011 from US$1,089.7 million in 2010 mainly due to the increase in cash and cash equivalents, trade receivables, deferred stripping costs, inventories, while partially offset with the decrease in prepaid taxes.

Current Assets Current assets increased to US$1,066.4 million in 2011 from US$608.2 million in 2010 as a result of a substantial increase in cash and cash equivalents, trade receivables, and inventories.

Cash and Cash Equivalents Cash and cash equivalents increased to US$612.4 million in 2011 from US$294.6 million in 2010, to stand at

52


2010

million in 2011 from US$117.9 million in 2010 and to US$8.9 million in 2011 from US$3.1 million in 2010, respectively.

Derivative Receivables Derivative receivables reflect the fair value of the outstanding coal swap contracts at the end of the year, and the Rupiah forward buy contracts that ITM had entered into to cover future operating expenses. The value of these contracts increased to US$26.4 million in 2011 from US$18.2 million in 2010.

608,153

Inventories

512,047

481,553

1,578,474

1,089,706

450,748

331,527

46,922

37,155

497,670

368,682

Inventories position consists of coal and stores and consumable supplies, deducted by provision for obsolete stores and consumable supplies. At the end of 2011, inventories were recorded at US$107.0 million, increased from US$70.5 million at the end of 2010.

1,080,804

721,024

1,578,474

1,089,706

1,066,427

57% of current assets. The increase was primarily due to ITM’s strong performance in both sales and production, which generated a good net income in 2011. Aside from holdings in US Dollars, which accounted for 87% of the total cash and cash equivalents, ITM also holds Rupiah and Euro in cash at banks. The interest earned for Rupiah denominated time deposits ranges from 6.25% - 7.35%, while for US Dollars deposits interest rate ranges from 0.55% - 3.00%.

Trade Receivables In line with the increase in sales, trade receivables also increased to US$211.2 million in 2011 from US$121.1 million in 2010. Both third parties and related parties’ trade receivables increased to US$202.3

In order to hedge against the risk of uncertain loss, the stores and consumable supplies were insured under a combined property all risks, machinery breakdown, and business inter ruption insurance polic y amounting to US$13.1 million.

Prepaid Taxes – Current Portion ITM’s prepaid taxes – current portion decreased to US$9.3 million in 2011 from US$70.0 million in 2010. The decrease was primarily due to the classification of overpayment of ITM’s corporate income tax as noncurrent asset in 2011. In addition, prepaid taxes - current portion also represents value added tax which can be utilized in the future. ITM’s subsidiaries, primarily PT Indominco Mandiri, PT Trubaindo Coal Mining and PT Kitadin had lower taxable income in 2010 compared to 2011.


Deferred Stripping Costs – Current Portion Deferred stripping costs (DSC) at PT Indominco Mandiri, PT Trubaindo Coal Mining and PT Kitadin represents costs incurred for removal of overburden without exposing the coal. The DSC for PT Indominco Mandiri increased to US$20.8 million in 2011 from US$10.3 million in 2010, PT Trubaindo Coal Mining increased to US$21.7 million in 2011 from US$9.7 million in 2010, and PT Kitadin also increased to US$24.8 million in 2011 from US$1.4 million in 2010. The DSC at PT Jorong Barutama Greston represents the excess stripping ratio over the estimated average mine life stripping ratio and will be expensed over the remaining life of PT Jorong Barutama Greston mine as the actual stripping ratio decreases. Due to this reason, the DSC balance of PT Jorong Barutama Greston at 31 December 2011 will be treated as a non-current portion.

Non-Current Assets Fixed Assets ITM’s net fixed assets decreased to US$344.4 million in 2011 from US$348.3 million in 2010 due to higher depreciation expenses related to the completion of several constructions in 2011, such as PT Indominco Mandiri’s port stock yard expansion and transmission line connecting its power plant to the West Block mining area. Major additions to the fixed assets resulting from constructionin-progress of on-going projects such as PT Trubaindo Coal Mining’s coal hauling road and Perak bridge construction. The fixed assets of ITM and its subsidiaries were insured for property all risk, machinery breakdown, business interruption, material damage, comprehensive general liability, terminal operations liability,

mobile and equipment damage amounting to US$631.5 million as at 31 December 2011.

contractor of PT Indominco Mandiri and PT Trubaindo Coal Mining.

Taxes Payable Deferred Stripping Costs – Net of Current Portion The DSC – net of current portion in non-current assets represents the portion of PT Jorong Barutama Greston balance, which decreased to US$18.8 million in 2011 from US$29.3 million in 2010. (Please also refer to explanation on Deferred Stripping Costs in the Current Assets section)

Deferred Exploration and Development Expenditures ITM’s deferred exploration and development expenditures increased to US$53.9 million in 2011 from US$43.0 million in 2010 mainly related to the land compensation expenses of PT Kitadin (Embalut) and development expenses of PT Bharinto Ekatama.

Prepaid Taxes – Net of Current Portion (Please refer to explanation on Prepaid Taxes in the Current Assets section)

Total Liabilities ITM’s consolidated total liabilities increased by 35% to US$497.7 million in 2011 from US$368.7 million in 2010 mainly due to the increase in trade payables, taxes payables, accrued expenses, and partially offset with the decrease in derivative liabilities.

Current Liabilities Trade Payables Third parties trade payables increased to US$146.4 million in 2011 from US$94.8 million in 2010. These trade payables are due in less than 30 days and are comprised mostly of US Dollar transactions, with the majority of the outstanding amount is due to PAMA as a third party mining

ITM’s taxes payable increased to US$109.3 million in 2011 from US$13.8 million in 2010 due to higher corporate income tax that ITM and its subsidiaries have to pay as a result of the increase in profit before tax compared to 2010.

Accrued Expenses Accrued expenses increased to US$188.6 million in 2011 from US$150.1 million in 2010 mainly due to the increase in the accruals for royalty and exploitation fee in relation to higher coal sales.

Derivative Liabilities PT Indominco Mandiri has entered into swap and derivative agreements with various financial institutions to hedge future coal and fuel prices, as well as Rupiah forward buy contracts. Derivative liabilities of US$1.4 million in 2011, decreased from US$63.6 million in 2010, reflected the fair value of the fuel swap contracts and Rupiah forward buy contracts at year end, while for coal swap contracts were in a gain position, thus recorded in the derivative receivables account under current assets.

Non-Current Liabilities Provision for Mine Rehabilitation And Provision for Decommissioning, Demobilisation and Restoration ITM recognizes a provision to meet its future environmental obligations, which consist of costs associated with mine reclamation during mine operation, mine closure, and decommissioning and demobilisation of facilities and other closure activities. The reclamation provision is recorded on an incremental basis based on the


53

quantity produced, while the mine closure provision is based on the discounted value of the expected closure costs at the end of mine life based on mine closure plans. Provision for mine rehabilitation increased to US$14.7 million in 2011 from US$11.2 million in 2010, while the provision for decommissioning, demobilisation and restoration increased to US$6.6 million in 2011 from US$5.9 million in 2010.

• CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Summary Expressed in thousand US Dollars, except for par value and share data. 2011 Net sales

2,381,875

1,644,650

(1,489,807)

(1,126,597)

892,068

518,053

(185,153)

(155,145)

706,915

362,908

Other income/(expenses)

23,023

(85,554)

Profit before income tax

729,938

277,354

(183,812)

(73,203)

546,126

204,151

1,129,925

1,129,925

0.48

0.18

Cost of goods sold Gross profit Total operating expenses Operating income

Provision for Employee Benefits ITM is required to provide a minimum amount of pension benefits in accordance with Labour Law No. 13/2003 or ITM’s Collective Labour Agreement, whichever is higher. In addition, ITM also provides long-term employee benefits which consist of long service rewards and long leave benefits. The provision for employee benefits increased to US$13.4 million in 2011 from US$11.2 million in 2010.

2010

Income tax expense Net income attributable to the owners of the Company Weighted average number of ordinary shares outstanding (in thousand of shares)

Basic earnings per share for net income attributable to the owners of the Company

Equity In 2011, ITM recorded a net income of US$546.1 million with a declared dividend of US$206.4 million. These were the main factors leading to ITM’s increase in total equity to US$1,080.8 million in 2011 from US$721.0 million in 2010. Another contributing factor derived from the recording of cash flow hedging reserves of US$5.5 million.

Net Sales In 2011 ITM generated a US$2,381.9 million net sales, an increase of 45% from US$1,644.7 million in 2010, contributed by the increase in coal shipments to 24.7 million tons in

2011 from 22.1 million tons in 2010 and higher average coal sales price at US$97.07 per ton in 2011 from US$74.87 per ton in 2010, driven by rising demand from Asia.

Expressed in thousand US Dollars 2011

2010

CHANGE

Coal Third parties Related parties

2,250,097

1,605,776

40%

120,377

28,887

317%

11,401

9,987

14%

2,381,875

1,644,650

45%

Services Third parties Total sales

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Cost of Goods Sold (COGS) In line with the increase in sales, COGS increased by 32% to US$1,489.8 million in 2011 from US$1,126.6 million in 2010 impacted by higher production costs, coal transpor tation costs, as well as royalty and exploitation fees paid to the Government. A significant component of production costs is mining costs, which include fees paid to ITM’s mining contractors in relation to overburden activities, including top soil removal, blasting, excavation and removal of overburden. It also includes coal mining, coal transportation to the coal processing area and mine reclamation activities. Mining costs increased to US$832.9 million in 2011 from US$586.9 million in 2010 because of overall increase in continuing coal mining and overburden removal activities at ITM’s mining operations and increase in stripping costs. Significant increase in the fuel prices, averaging US$1.03 per litre in 2011 from US$0.72 per litre in 2010, also affected the mining cost rate charged by the contractors. Coal transportation costs represent costs of coal hauling from stockpiles in concession areas to port facilities. These costs increased to US$88.8 million in 2011 from US$72.6 million in 2010 due to the impact of surging fuel prices, as well as higher quantities of coal being transported. Royalties paid to the Government are calculated based on the 13.5% tariff of sales after deduction of certain allowed selling expenses. The tariff is applicable for companies who hold “CCoW” license like PT Indominco Mandiri, PT Trubaindo Coal Mining and PT Jorong Barutama Greston. PT Kitadin, under its Mining Business License (“IUP”), pays royalties to the Government in the form of exploitation fees. The exploitation

fee for PT Kitadin ranges from 3% to 7%, depending on the calorific value of the coal, of sales after deduction of certain allowed selling expenses. Royalties and exploitation fee increased to US$300.2 million in 2011 from US$203.9 million in 2010 primarily due to the increase in both sales volume and selling price.

Significant Suppliers ITM considers significant suppliers to be those with transactions of more than 10% of the Company’s total purchases of goods and services for production activities. Currently, PT Pamapersada Nusantara (“PAMA”) is ITM’s most significant supplier. PAMA provides mining contractor services to PT Indominco Mandiri and PT Trubaindo Coal Mining. The services p rovi ded i nc lude over b urden removal, coal mining, and coal hauling/transportation. Transaction amounts from PAMA increased to US$746.2 million in 2011 from US$452.4 million in 2010.

Gross Profit and Margin

General and administration expenses increased to US$85.8 million in 2011 from US$79.3 million in 2010 primarily due to the increase in professional and management fees.

Operating Income and Margin The resulting operating income increased by 95% to US$706.9 million in 2011 from US$362.9 million in 2010, with operating income margin also increased to 30% in 2011 from 22% in 2010.

Other Income/(Expenses) In contrary to 2010 when ITM recorded a US$85.6 million of other expenses, in 2011 the Company incurred a US$23.0 million of other income. The significant change was primarily due to the gain on derivative transactions amounting to US$34.3 million compared to the loss of US$54.1 million in 2010. ITM’s derivative transactions consist of coal swap contracts, fuel swap contracts, and Rupiah forward buy contracts.

Due to the above mentioned factors, ITM’s gross profit increased by 72% to US$892.1 million in 2011 from US$518.1 million in 2010. Gross profit margin also increased to 37% in 2011 from 31% in 2010 primarily due to higher average coal sales price.

ITM faces constant commodity price risk because coal is bought and sold on the world coal markets; therefore ITM has adopted a coal swap program to hedge future revenue. Hedging reduces potential losses to ITM that may occur due to significant price fluctuations.

Operating Expenses

ITM also faces commodity price risk related to the usage of fuel necessary to run its operations. An increase in fuel price may cause profit to decrease as any increase in fuel price increases production costs, the COGS and selling costs. ITM therefore entered into derivative agreements with international financial institutions to hedge against future fuel price increases.

ITM’s operating expenses, which comprised of selling and general administration expenses, increased by 19% to US$185.2 million in 2011 from US$155.1 million in 2010. In line with the increase in coal shipment, selling expenses increased to US$99.4 million in 2011 from US$75.8 million in 2010. In particular, the increase in coal shipment will directly related to the increase in major selling expenses such as fuel and oil consumed for barging activities, freight cost, and ship rental.

Profit Before Income Tax Profit before income tax increased to US$729.9 million in 2011 from US$277.4 million in 2010, due to the above mentioned factors.


55

Income Tax Expense Income tax expense increased to US$183.8 million in 2011 from US$73.2 million in 2010, with the applicable statutory tax rate of 25%.

Net Income As a percentage of sales, income tax expense increased to 8% in 2011 from 4% in 2010.

• Cash Flow ITM managed to record a positive cash flow in 2011, amounting to US$317.8 million, benefited by the strong revenue from its coal sales.

Summary Expressed in thousand US Dollars 2011

2010

Net cash provided by operating activities

591,612

239,491

Net cash used in investing activities

(67,342)

(62,421)

Net cash used in financing activities

(206,423)

(311,081)

Net increase/(decrease) in cash and cash equivalents

317,847

(134,011)

Cash and cash equivalents at the beginning of the year

294,569

428,580

Cash and cash equivalents at the end of the year

612,416

294,569

As a result of the foregoing factors, net income increased to US$546.1 million in 2011 from US$204.2 million in 2010.

Cash Flows from Operating Activities ITM’s net cash flow provided by operating activities recorded at US$591.6 million in 2011 mainly contributed by the proceeds received from coal sales amounting to US$2,291.7 million, with cash outflow intended for payments to suppliers amounting to US$1,242.1 million, payments to directors and employees amounting to US$59.6 million, payments of corporate income tax amounting to US$92.9 million, and payment of royalties and exploitation fee amounting to US$287.4 million.

Cash Flows from Investing Activities ITM’s net cash used in investing activities recorded at US$67.3 million in 2011, intended for acquisition of fixed assets mainly on the completion and on-going project construction such as PT Trubaindo Coal Mining’s coal hauling road and Perak bridge, and PT Bharinto Ekatama’s crushing plant. In addition, the cash was also use for deferred exploration and development expenditures.

Cash Flows from Financing Activities ITM declared and paid out the dividend in 2011 amounting to US$206.4 million, and did not borrow any fund to support its operation and investment activities.

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• FINANCIAL RATIOS Financial Ratios

2011

2010

Profitability Ratio Gross Profit to Net Sales (Gross Profit Margin)

37%

31%

Operating Income to Net Sales (Operating Income Margin)

30%

22%

Net Income to Net Sales (Net Profit Margin)

23%

12%

Net Income to Total Assets (Return on Assets)

35%

19%

Net Income to Total Equity (Return on Equity)

51%

28%

237%

183%

Liquidity, Solvency and Debt Ratio Current Assets to Current Liabilities (Current Ratio) Total Liabilities to Total Assets (Debt Ratio)

32%

34%

Total Assets to Total Liabilities (Solvency Ratio)

317%

296%

Net Debt to Total Equity (Debt to Equity Ratio)

0%

0%

Efficiency Ratio Net Sales to Average Trade Receivables (Receivables Turnover) Average Collection Period

14 times

13 times

26 days

28 days

Profitability The profitability ratio illustrates how ITM utilized its existing resources in generating profit and shareholder value. Supported by the growth in ITM’s production, as well as the increase in coal sales price, all the profitability ratios showed a positive trend in 2011 compared to 2010. Net Profit Margin increased to 23% in 2011 from 12% in 2010, while Return on Assets also increased to 35% in 2011 from 19% in 2010.

With a current ratio of 237% in 2011, ITM is in a good position to meet its short term obligations. The fact that ITM’s solvency and debt ratio are 317% and 32% respectively reveals that ITM is in a strongly solvent position to meet its obligations. With no outstanding loans in 2011 reflected by 0% of debt to equity ratio, ITM has enough room to utilize its financial leverage capability for future growth.

Liquidity, Solvency and Debt

Capital Risk Management

The liquidity ratio measures ITM’s ability to pay off its short term liabilities, while debt ratio reveals ITM’s debt load and the structure of equity and debt.

ITM’s objectives when managing capital are to safeguard the ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, ITM and its subsidiaries may adjust the amount of dividends paid to shareholders and return capital to shareholders. Consistent with others in the industry, ITM and its subsidiaries monitor capital on the basis of the debt to equity ratio. This ratio is calculated as net debt divided by total equity. Net debt is calculated as total loan received from lender and interest payable incurred during the year. Total capital is calculated as “equity” as shown in the consolidated statement of financial position.


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Expressed in thousand US Dollars

Collectability The receivables turnover ratio indicates a company’s ability to manage its account receivables, and in ITM’s case, the average collection period has improved to 26 days in 2011 from 28 days in 2010.

Classification Current

2011

2010

165,086

86,539

44,205

34,523

Overdue 31-60 Days

-

-

Overdue 61-90 Days

1,847

-

Overdue 1-30 Days

Overdue Over Than 90 Days Total Trade Receivables

60

-

211,198

121,062

CAPITAL EXPENDITURE/INVESTMENT • Organic Projects Expenditure or investment for organic project are an outgrowth of ITM’s existing assets and are intended to enhance or expand the capacity/ productivity of existing operation. Several projects were constructed in 2011 and will continue to be carried out in the following year: • Port stock yard expansion at Bontang Coal Terminal of PT Indominco Mandiri was completed in August 2011 and intended to increase the capacity of coal stock yard by 0.30Mt. Total expenditure in 2011 was US$5.5 million, with total cumulative

expenditure for the project worth US$8.6 million. • Coal hauling road and Perak bridge construction at PT Trubaindo Coal Mining is still underway, with progress completion of 76%. Expenditure in 2011 amounted to US$7.3 million, with total cumulative expenditure until the end of 2011 at US$17.9 million. • Crushing plant construction as part of new mining concession at PT Bharinto Ekatama was completed in October 2011. Total cumulative expenditure amounting to US$13.0 million.

• General and Maintenance Capital Expenditure Aside from investment in major construction/project, ITM also invested in capital expenditure intended to maintain its existing infrastructure and facilities, such as crushing plants, washing plants, and coal terminal, in order to have an efficient and reliable operation, and also other general capital expenditure to support the continuity of the operation activities.

RISKS FACTORS As a coal mining business, ITM is subject to a number of risks related to our industry, the major risks being as follows. ITM’s results of operations are highly dependent upon cyclical coal prices and are therefore subject to significant fluctuations including a variety of other factors which ITM has no control such as weather, distribution problems and labor disputes. In addition, the coal market itself is highly competitive and are affected by factors beyond ITM’s control.

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ITM’s business is also subject to a variety of accidents and natural disasters, including the risk of fire, explosions, mine collapses, unexpected geological conditions, landslides, environmental hazards, weather (including heavy rainfall), and other natural phenomena. New laws or regulations could affect ITM’s results of operations and licenses. ITM is also subject to price risk for fuel, which is a significant component of its

operating cost. Finally, ITM is subject to foreign exchange risk as, although ITM’s revenue, financing, and majority of its operating expenditures are denominated in US Dollars, ITM enters into Rupiah forward buy contracts to cover future operating expenses. Outstanding contracts denominated in Rupiah as of 31 December 2011 are as follows:


Counter Parties

Forward Rate *

Total Notional Amounts (Sell) **

Rupiah Equivalent Amounts (Buy)

Maturity Date

Citibank N.A.

Rp8,680 - Rp9,478

US$41,950

Rp385.87 billion

January - November 2012

Standard Chartered Bank

Rp8,653 - Rp9,530

US$37,500

Rp341.77 billion

January - December 2012

PT Bank Central Asia Tbk.

Rp8,989 - Rp9,308

US$20,000

Rp183.49 billion

January - June 2012

The Hongkong and Shanghai Banking Corporation Limited

Rp9,136 - Rp9,417

US$4,500

Rp41.69 billion

May - July 2012

J.P.Morgan Chase Bank, N.A.

Rp9,238 - Rp9,466

US$8,000

Rp74.90 billion

May - October 2012

*** Represents Rp to US$ exchange rate. ** Expressed in thousand US Dollars.

MATERIAL INFORMATION • Dividends For the financial year 2011, ITM paid an interim dividend of Rp1,168 per share on 14 October 2011 for a dividend payout ratio of 75%, whereas in 2010 an interim dividend of Rp795 per share was paid out on 15 October 2010 and the balance of final dividend in the amount of Rp407 per share was paid out on 6 May 2011.

• Use of Initial Public Offering (IPO) Proceeds As at 31 December 2011, ITM has utilized the proceeds from the offering of Rp3,064.2 billion after deduction of fees and commissions and certain expenses incurred in connection with the offering as follows: Use of Proceeds

Allocation

Realization as of 31 December 2011

PT Indominco Mandiri Bontang Coal Terminal

Rp656.3 billion

Rp699.5 billion

PT Indominco Mandiri Bontang power plant

Rp234.4 billion

Rp126.1 billion

PT Indominco Mandiri East Block development

Rp187.5 billion

-

PT Bharinto Ekatama development

Rp468.8 billion

Rp230.2 billion

Rp1,517.2 billion

Rp905.1 billion

Rp3,064.2 billion

Rp1,960.9 billion

Others (business expansion and debt repayment) Total


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• Related Party Transactions ITM has entered into related parties transactions with its ultimate controlling entity of ITM, under common control with ITM, and the controlling shareholder of ITM. The nature of such transactions consisted of coal sales, expense reimbursement, as well as management and advisory services. ITM’s pricing policy related to the transactions with related parties as follows: • Sales of coal to related parties are set based on sales contracts, which generally use international indices as benchmarks adjusted for coal specifications and location of deliveries. ITM obtained approvals from the appropriate government authority for these sales transactions.

The nature of the relationships with the related parties is as follows: Party

Relationship

Transaction

Banpu Public Company Limited

The ultimate controlling entity of the Company

Coal sales, expense reimbursement, management and advisory services

Banpu International Limited

Under common control with the Company

Coal sales, expense reimbursement

Banpu Minerals (Singapore) Pte.Ltd.

The controlling shareholder of the Company

Expense reimbursement

Chiang Muan Mining Co.Ltd.


Coal sales

Silamani Company Limited


Expense reimbursement

• Related parties re-charged expenses paid on behalf of ITM at cost, and vice versa.

COMMITMENTS AND CONTINGENT LIABILITIES • Purchase Commitments As at 31 December 2011, ITM and its subsidiaries had outstanding purchase orders for mining equipment and supplies amounting to US$21.8 million.

• Mining Services Contracts, Fuel Purchase Agreements, and Vehicle Rental Agreements ITM’s subsidiaries entered into various mining services contracts, fuel purchase agreements and vehicle rental agreements to support its mine operations. • Each agreement with the mining service contractors governs, among others, the price rate, fuel price adjustment, fuel consumption, explosives

60


management, incentives for the contractor, stripping ratio benchmarks, and other terms. Contract values are dependent on volumes of overburden moved and coal mined. These contracts will expire between January 2012 and June 2014. • The fuel purchase agreements were entered into with Pertamina. As at 31 December 2011, the total remaining contract quantity was 154,000 kilolitres. The Company’s subsidiaries have provided bank guarantees to Pertamina for a total amount of US$3.7 million. • The vehicle rental agreements were entered into with various providers. The total remaining contract value is Rp55.1 billion or equivalent to US$6.1 million.

• Litigation/Investigation PT Indominco Mandiri On 20 January 2009, PT Indominco Mandiri filed a civil claim against PT Asuransi Andika Raharja Putera through the Civil Court of South Jakarta (Case No. 29/Pdt.G/2009/PN.JKT.Sel) in relation to a defaulting payment of performance bond previously claimed by PT Indominco Mandiri. The claim of the performance bond, amounting to US$1.4 million (not including interest and opportunity loss claims), was claimed to PT Asuransi Andika Raharja Putera as the performance bond issuer in responding to a contractual default by a contractor in PT Indominco Mandiri Bontang power plant project. On 18 August 2009, the South Jakarta District Court issued Decision No. 29/ Pdt.G/2009/PN.Jkt.Sel which granted PT


Indominco Mandiri’s claim and ordered the Defendant (PT Asuransi Andika Raharja Putera) to pay compensation to the Plaintiff (PT Indominco Mandiri) in the amount of US$1.4 million. Subsequently, the Defendant submitted an appeal to the Jakarta High Court through the South Jakarta District Court. During the appeal stage at the Jakarta High Court, on 1 April 2010, PT Indominco Mandiri and the Defendant agreed to settle the dispute amicably. PT Indominco Mandiri agreed to receive US$0.8 million from the Defendant, which represents 60% of the performance bond. However, even though the Plaintiff and the Defendant have settled the case amicably and submitted the settlement agreement to the Jakarta High Court, in July 2011 the Jakarta High Court issued a decision which declared that the Plaintiff’s claim is unacceptable. Therefore, on 26 July 2011, PT Indominco Mandiri as the Plaintiff submitted an appeal to the Supreme Court of the Republic of Indonesia and also submitted the Memorandum of Appeal on 24 August 2011 to the Supreme Court of the Republic of Indonesia via the Registrar Office of the South Jakarta District Court, against the decision of the Jakarta High Court.

PT Trubaindo Coal Mining By Notice of Arbitration dated 2 December 2008, one of PT Trubaindo Coal Mining’s contractors commenced arbitration in Singapore against PT Trubaindo Coal Mining for a claim totalling US$1.4 million. The Notice was filed with the Singapore International Arbitration Centre (“SIAC”). As at the date of these financial statements, the arbitration had not progressed beyond the above mentioned notice and the contractor had not taken any steps in the arbitration since 2 December 2008.

Management believes that resolution of this matter will not have a material adverse impact on ITM’s financial position and cash flows.

• Mining Law No. 4/2009 On 16 December 2008, the Indonesian Parliament passed a new Law on Mineral and Coal Mining (the “Law”), which received the assent of the President on 12 January 2009, becoming Law No. 4/2009. CCA system under which several of ITM’s subsidiaries operate will no longer be available to investors. While the Law indicates that existing CCAs, such as those held by ITM, will be honoured, the transition provisions are unclear, and will require clarification through government regulations. There are a number of issues which existing CCA holders, including ITM, are currently analysing. Among others these include: - the CCA transition provisions. The Law notes that existing CCAs will be honoured until their expiration. However, it also states that existing CCAs must be amended within one year to conform with the provisions of the Law (other than terms related to State revenue - which is not defined, but presumably includes royalties and taxes); and - the requirement for CCA holders which have already commenced some form of activity to, within one year of enactment of the new Law, submit a mining activity plan for the entire contract area. If this requirement is not fulfilled, the contract area may be reduced to that allowed for licences under the Law. Following the issuance of the Law, the Director General of Minerals, Coal and Geothermal (“DGMCG”) issued Circular No. 03.E/31/DJB/2009 with respect to Mining Business License (“IUP”) under which PT Kitadin operates. The Circular states that, among others: - KPs in force at the time the new Mining Law was enacted will

remain valid until the expiration of the KP but must be converted to a Mining Business License (Izin Usaha Pertambangan or “IUP” – the mining license under the Law) by 11 January 2010 at the latest. - The procedures for IUP issuance will be issued by the DGMCG (presumably through the upcoming implementing regulations for Law No. 4/2009). - All existing exploration and exploitation KP holders are required to deliver an activities plan for the whole KP area covering the period until expiration of the KP term, at the latest within six months of the enactment of the new Mining Law, i.e. by 11 July 2009. In February 2010, the Government of Indonesia released two implementing regulations for Mining Law No. 4/2009, i.e. Government Regulations Nos. 22/2010 and 23/2010 (“GR No. 22” and “GR No. 23”). GR No. 22 deals with the establishment of mining areas under the new IUP system. GR No. 23 provides clarifications surrounding the procedures to obtain new IUPs. GR No. 23 indicates that existing CCAs will be honoured by the Government although any extension of existing CCAs will be through the issuance of an IUP. GR No. 23 also requires a KP to be converted into an IUP within three months of the issuance of GR No. 23. On 10 January 2012, the President issued a Presidential Decree (Keppres No.3/2012) on Evaluation Team for Contract of Work (“COW”) and CCA Adjustment. The Evaluation Team (“Team”) will be chaired by the Coordinating Minister of Economy and co-chaired by Minister of Energy and Mineral Resources of for its daily activities, and the members consists of current Cabinet Members (Ministry of Finance, Ministry of Justice and Human Rights, Ministry of Forestry, Indonesia Investment Coordinating Board, et al).


61

The Team’s task consists of the following: (1) evaluating the articles in the COW and CCA to be in compliance with the Law; (2) determine the steps to be taken to determining COW and CCA areas and state income/revenue for the purpose of COW and CCA negotiation; (3) determine steps to be taken for the implementation of the COW and CCA holder’s obligations, on the processing and/or refinery of mineral and coal. ITM is analysing the impact of this regulation on its operations, and believes that there will be no significant impact in the near term. ITM has converted all of its KP license into IUP and continued using the stipulations specified in the CCA contract while awaiting further implementation of this laws and regulation.

• Ministerial Regulation No. 34/2009 In December 2009, the Minister of Energy and Mineral Resources issued Ministerial Regulation No. 34/2009, which provides a legal framework to require mining companies to sell a portion of their output to domestic customers (“Domestic Market Obligation” or “DMO”). According to Ministerial Decree No. 2360/K/30/ MEM/2010, the minimum DMO percentage for 2011 was 24.17%. This regulation provides for a “cap and trade” system whereby mining companies that exceed their DMO obligations may sell/transfer DMO credits to a mining company that is unlikely to meet its DMO commitment. The pricing mechanism for DMO credits is to be determined on commercial terms. The mechanism for trading DMO credits has been clarified in Circular Letter of DGMCG No. 5055/30/DJB/2010 dated 29 November 2010, which provides that DMO credits can be transferred between mining companies with the approval of the Directorate General of Minerals, Coal and Geothermal,

62


including credits held by traders on behalf of a mining company. During 2011, ITM bought DMO credits from other mining companies to fulfill its 2011 DMO which required by the Government.

• Ministerial Regulation No. 28/2009 In September 2009, the Minister of Energy and Mineral Resources issued Ministerial Regulation No. 28/2009 which, among others, sets the obligation of an IUP/IUPK (“Special Mining Business Licence”) holder company to conduct coal getting, processing and refining on its own. Another important provision in this regulation is the strict criteria for mining companies use of ‘Affiliates’ or ‘Subsidiaries’ as their mining contractors and requires government approval to use an affiliate as a mining contractor. The regulation provides exceptions only when no other capable mining service companies operate in the area. The regulation provides a three year transition period for changes to existing arrangements. ITM is currently considering the implications of this regulation, given that PT Kitadin provides mining services to other members of ITM.

• Government Regulation No. 78/2010

On 20 December 2010, the Government of Indonesia released an implementing regulation for Mining Law No. 4/2009, i.e. Government Regulation No. 78/2010 (“GR No. 78”) that deals with reclamation and post-mining activities for both IUP-Exploration and IUP-Production Operation holders. This regulation updates Ministerial Regulation No. 18/2008 issued by the Minister of Energy and Mineral Resources on 29 May 2008. An IUP-Exploration holder, among other requirements, must include a reclamation plan in its exploration work plan and budget and provide a reclamation guarantee in the form of a time deposit placed at a state-owned bank.

An IUP-Production Operation holder, among other requirements, must prepare (1) a five-year reclamation plan; (2) a post-mining plan; (3) provide a reclamation guarantee which may be in the form of a joint account or time deposit placed at a state-owned bank, a bank guarantee, or an accounting provision (if eligible); and (4) provide a post-mine guarantee in the form of a time deposit at a state-owned bank. The requirement to provide reclamation and post-mine guarantees does not release the IUP holder from the requirement to perform reclamation and post-mine activities. The transitional provisions in GR No. 78 make it clear that CCA holders are also required to comply with this regulation. As at the date of the release of ITM’s financial statements, its subsidiaries, PT Indominco Mandiri, PT Trubaindo Coal Mining, PT Kitadin, PT Jorong Barutama Greston, and PT Bharinto Ekatama, have placed reclamation guarantees in the form of bank guarantees. ITM is in the process of obtaining Government approval for the mine closure plans prepared by PT Indominco Mandiri, PT Trubaindo Coal Mining, PT Kitadin, PT Jorong Barutama Greston, and PT Bharinto Ekatama, and will determine whether time deposits are required to fund these obligations.

• Ministerial Regulation No. 17/2010 On 23 September 2010, the Minister of Energy and Mineral Resources issued Ministerial Regulation No. 17/2010 outlining the mechanism for determining the Indonesian Minerals and Coal Benchmark Price (“IMCBP”), as one of the implementing regulations to the Mining Law No. 4/2009. It is effective on 23 September 2010. Ministerial Regulation No. 17/2010 governs among others: • the use of the average mineral/ coal price from international market indices and the use of


free-on-board (“FOB”) mother vessel as the sale point to determine the IMCBP; • the acceptance of certain costs as adjustments to the IMCBP (if the actual sale point is not FOB mother vessel); and • the use of a “floor” price approach (i.e. IMCBP vs. actual sales price, whichever higher, for the Non-Tax State Revenue calculation (e.g. royalty or exploitation fee). This regulation also requires mining companies to: • use Indonesian flagged ships/ vessels to transport minerals/coal; • prioritize the use of a national insurance company where CIF sale terms are adopted; and • use surveyors appointed by the Directorate General of Minerals, Coal and Geothermal. Ministerial Regulation No. 17/2010 provides a transitional period until 22 March 2011 for spot sales contracts and 22 September 2011 for term sales contracts.

Following the issuance of the regulation, on 24 March 2011, the DGMCG issued regulation No. 515.K/32/DJB/2011 outlining the formula mechanism of Coal Benchmark Price for spot and term sales contracts. The DGMCG will determine and update the monthly Coal Benchmark Price for spot sales contracts in accordance with market prices (based on a basket of recognised global and Indonesian coal indices in the case of coal). For long term contracts, the coal sales price is determined based on the weighted average of the Coal Benchmark Price for the preceding three months. A coal mining company is required to notify the DGMCG of the proposed sales price before signing long term sales agreements. The Coal Benchmark Price is valid for IUP-Production Operation, IUPK-Production Operation and CCA holders. In determining the coal sales price, ITM has followed the requirement of Ministerial Regulation No.17/2010 related to Coal Benchmark Price.

• Government Regulation No. 9/2012 On 6 January 2012, the Government of Indonesia released a regulation for non-tax state revenue GR No.9/2012 which replaced previous regulation GR No.45/2003. This regulation provides clarification for obligation fees on metal mineral and coal commodities business which previously has not been set in GR No.45/2003. In addition, it also provides guidelines on other fixed fees related to metal mineral and coal mines activities and other fees which are not related to commodities such as compensation for information related to IUP and IUPK exploration areas, replacement costs for closed coal mines and portion of the Government’s share (4%) from IUPKProduction Operation holders based on its net income. There is no change of exploitation fee rate for PT Kitadin as an IUP holder in ITM based on the new regulation (ranging from 3% to 7% depending on coal quality). The CoW holder is expected to continue using the rate specified in the contract.


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Prospective Accounting Pronouncements The following are the Statements of Financial Accounting Standards (SFAS) to be effective on or after 1 January 2012: • SFAS No. 10 (Revised 2010), “The Effects of Changes in Foreign Exchange Rates”. • SFAS No. 16 (Revised 2011), ”Fixed Assets”. • SFAS No. 18 (Revised 2010), “Accounting and Reporting by Retirement Benefit Plans”. • SFAS No. 24 (Revised 2010), “Employee Benefits”. • SFAS No. 26 (Revised 2011), ”Borrowing Costs”. • SFAS No. 30 (Revised 2011), ”Leases”. • SFAS No. 33 (Revised 2011), “Stripping Activities and Environmental Management in General Mining”. • SFAS No. 34 (Revised 2010), “Construction Contracts”. • SFAS No. 46 (Revised 2010), “Income Taxes”. • SFAS No. 50 (Revised 2010), “Financial Instruments: Presentation”. • SFAS No. 53 (Revised 2010), “Share-based Payments”. • SFAS No. 55 (Revised 2010), ”Financial Instrument: Recognition and Measurement”. • SFAS No. 56 (Revised 2010), “Earning per Share”. • SFAS No. 60 (Revised 2010), “Financial Instruments: Disclosures”. • SFAS No. 61 (Revised 2010), “Accounting for Government Grants and Disclosure of Government Assistance”. • SFAS No. 63 (Revised 2010), “Financial Reporting in Hyperinflationary Economies”. • SFAS No. 64, “Exploration for and Evaluation of Mineral Resources”. • ISFAS No. 13, “Hedges of a Net Investment in a Foreign Operation”. • ISFAS No. 15, “The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction”. • ISFAS No. 16, “Service Concession Arrangements”. • ISFAS No. 18, “Government Assistance – No Specific Relation to Operating Activities”. • ISFAS No. 20, “Income Taxes - Changes in the Tax Status of an Entity or its Shareholders”. • ISFAS No. 23, “Operating Leases - Incentives”. • ISFAS No. 24, ”Evaluating the Substance of Transactions Involving the Legal Form of a Lease”. • ISFAS No. 25, ”Land Rights”. • ISFAS No. 26, ”Re-assessment of Embedded Derivatives”. ITM is still considering the impact, if any, of these revised standards on the consolidated financial statements.

RECLASSIFICATION OF ACCOUNTS Certain comparative figures in the consolidated financial statements for the year ended 31 December 2010 have been amended to conform with the basis on which the consolidated financial statements for the year ended 31 December 2011 have been presented.

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In particular, to conform with the presentation of the 2011 consolidated financial statements, the accounts of net sales and selling expense in the 2010 consolidated statement of comprehensive income have been reclassified.

SUBSEQUENT EVENTS There were no significant events or transactions occurred subsequent to the audited consolidated financial statements date.

Good Corporate Governance &

Social Responsibility

Good Corporate Governance And Social Responsibility 67

Good Corporate Governance

67

GCG as Corporate Culture

67

Code of Conduct

68

Compliance Division

69

Independent Whistle Blower Center (IWBC)

69

Rights of Shareholders

70

GCG Implementation

70

• Annual General Meeting of Shareholders

71

• Board of Commissioners

73

• Board of Directors

75

• Ensuring BoC & BoD Independence

76

• Corporate Secretary

76

• Good Corporate Governance, Nomination and Compensation Committee

77

• Audit Committee

78

• Audit Committee Report

79

• Policy in Risk Management

79

• Risk Management Committee

80

• Internal Audit

81

• External Audit

82

Corporate Social Responsibility And Community Development

G oo d Corporate G overnance & S ocial R esponsibility

Good Corporate Governance ITM is committed to the principles of good corporate governance in compliance with the recommended best practices for the listed company and relevant rules, regulations and guidelines of the Capital Market and Financial Institution Supervisory Board or Bapepam-LK, and the Self Regulatory Organization (SRO). In addition, the company aims to attain

the highest international standards and best practices in the adoption and implementation of sound principles of corporate governance. In line with our Vision and Mission, ITM is committed to good corporate governance (GCG) practices in an effort to be an exemplary corporate citizen and truly world

class mining company. Implementing GCG principles will help to: • strengthen our company • improve performance • manage risk, and • enhance ITM’s reputation

GCG as Corporate Culture As part of the Banpu Group of companies, ITM shares the core values and attributes of Banpu corporate culture, also known as the Banpu Spirit, which already contains the principles of GCG. Therefore of ITM’s goals is to strengthen our corporate culture so that the GCG principles are ever present. We have therefore created a three-stage GCG Implementation Roadmap to guide our long-term path towards achieving excellence in corporate governance.

The ITM GCG Roadmap was created based on Indonesia’s GCG code as published by the National Committee on Governance, compliance with the Company law relevant rules, regulations and guidelines of Bapepam-LK and the SRO, and reference to the highest international standards and best practices of corporate governance. It also references the GCG principles of transparency, accountability, responsibility, independency and fairness.

Stage 1 In Stage 1, the main objective is “to fulfill all regulatory and rules both mandatory and voluntarily”.

Stage 2 The main goal in Stage 2 is to become an “Effectively Good Governed Company (business process and ERM aspect)”.

Stage 3 In this final stage, the end goal is to become an “Ethical Good Corporate Citizen”.

The ITM GCG Implementation Roadmap consists of three major stages as follows:

Code of Conduct A Code of Conduct has been established in the spirit of GCG, which all ITM employees are required to adhere to. Each year employees must sign a Statement of Commitment pledge promising to uphold company values and the ITM Code of Contact. All ITM Commissioners, Directors and employees must comply with the Code of Conduct to ensure fair and balanced dealings with all stakeholders including employees, customers, trading partners, creditors, government agencies, communities where the company operates and society at large.

Responsibility to Shareholders

Conflicts of Interest

To maintain sustainable growth and treat shareholders equitably, ITM conducts its business with integrity, honesty and ethics.

ITM employees are not allowed to trade on their position at ITM nor seek personal benefit from proprietary Company information.

Compliance with the Law and Relevant Rules and Regulations

Giving / Receiving Bribes, Gratuities and Entertainment

ITM always operates fully in compliance with all rules and regulations, while respecting local customs and traditions. Employees shall not assist, support or conspire to avoid any legal or regulatory requirement and shall cooperate with regulators and report any information on violation or non-compliance.

1. ITM employees will not demand, receive or give any benefit which may be construed as a bribes from business partners, contractors, suppliers, advisors, consultants, auditors and those with whom ITM is doing business with, including competitors.


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2. ITM employees are prohibited from offering any benefit to government officers, customers, labor unions or any other external parties in any attempt to persuade them to commit a fraudulent action. 3. ITM employees conduct our business with integrity. We will not accept nor give gifts, gratuities or unusually lavish entertainment to any party.

Policies and Practices toward Employees Fair treatment is required in all relations with employees, including policies regarding employment opportunity, remuneration, promotion and professional development.

Policies and Practices toward Customers Customer satisfaction is of great importance to the Company; thus, ITM fully intends to respond to customer demands effectively and efficiently and to continuously improve satisfaction.

Policies and Practices toward Trading Partners and/or Creditors Founded upon the principle of mutual benefit, a fair and equal treatment of trading partners and creditors will lead away from conflict of interest.

Safety, Occupational Health and the Environment ITM will disclose all information regarding its operations in relation to safety, occupational health and the

Compliance Division

environment in an effort to clearly demonstrate: compliance with all legislation, the provision of a safe working environment, and the systems ITM uses to promote good practices in these areas.

Responsibility to the Community and Society With its corporate culture, ITM operates under and promotes goals and policies that provide sustainable benefits to the economy and the society while safeguarding the customs and traditions of local communities. It is also ITM’s policy to create in each employee an individual social consciousness as a responsible corporate citizen who complies with all relevant laws, rules and regulations and contributes to uplifting the overall quality of life.

As of August 2011, the Company formally established the Compliance function as a division to reflect the Company’s commitment towards GCG. The purpose of this new Compliance division was formed in order to make the compliance process more systematic and sustainable. The function of the Compliance Division is to enhance compliance by raising the awareness of operational staff; creating a comprehensive checklist of all required operational permits; and finally, creating workable action plans based on this checklist. The Compliance division continues the work of the Compliance Committee, which had been established in 2010 drawing from the functions of External Relations, Legal, Operation and QSE for purpose of assisting operational business units. It should be stressed that we are already in compliance, and that the establishment of this Division is a manifestation of our commitment to be the best ethical corporate citizen that we can be.

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Independent Whistle Blower Center (IWBC) Whistle blowing system or WBS is important for companies to increase and sustain ethical conformance of their employee. It is a part of internal control environment especially in reducing the risk of frauds and legal incompliant. ITM therefore set up the Independent Whistle Blower Center (IWBC) in 2011 to strengthen our GCG policies and advance along our GCG roadmap. The WBS policy is intended to encourage employees to bring ethical and legal violations they are aware of to light in a confidential manner without fear of retribution. It is anonymous and automated, and the IWBC is maintained by an outside party so that no employee inside ITM will know the reporter’s

identity, including the Ombudsman (Head of GCG Committee, President Director and Corporate Secretary). The IWBC accepts complaints using online submission and email submission. IWBC is available 24 hours a day, 365 days a year. The IWBC has bilingual capability – Bahasa Indonesia and English – to support complainants with different language mastery. An anonymous report is acceptable since the company focuses on ‘what wrongdoing’ against the company’s best interest that need to be taken care of, rather than who initiates the report or whom it is being addressed to. The reporter also has the option either

he or she is willing to be contacted through IWBC or not. If he choose not to be contacted then he or she will not be able to receive any feedback, nor any incentive that might be available to reward their contribution at the discretion of the Ombudsman. Reasonable protection for the whistle blower with a good intention is provided by the company, especially: Confidentiality of the reporter’s identity and the information being reported, protection against possible retaliation, and work security. The use of IWBC will ensure the information about the reporter’s identity is kept confidential.

Rights of Shareholders Thus far, the company has always held the Annual General Meeting of Shareholders (AGMS) within 4 months after the end of the fiscal year in accordance with Article 78 (2) Limited Liability Company Act. The AGMS is held in accordance with the arrangements in the Articles of Association, Limited Liability Company Act, as well as Bapepam-LK and the Indonesia Stock Exchange. In order to fulfill the rules of the Articles of Association, notice to shareholders regarding AGMS is given 32 days before the date of the AGMS. To encourage or increase the level of attendance of shareholders at the Annual and Extraordinary GMS, the Company publishes the date of the event on the Company’s website in addition to publication in two national daily newspapers. The publication also

contains procedures and proxy forms proxies in case shareholders are unable to attend the shareholders’ meeting and wish to be represented. Thus, it can facilitate and enhance the voting of all shareholders equally. Companies generally deliver audited consolidated annual financial statements to regulators approximately 2 months after the financial year ended. Furthermore, the Company promptly publishes the audited financial statements in two Indonesian language daily newspapers, organizes Analyst Meeting, and uploads all of its material to the company website where it can be accessed by all stakeholders. In organizing the GMS, at the end of the agenda the shareholders are invited to submit questions or give input on the concerned agenda.

In general, decisions made in the AGMS have to do with request for approval of the financial statements and annual reports as part of the Board of Directors and Board of Commissioners’ accountability for the company. Other regular agendas include requests for AGMS approval of Board compensation and appointment of public accountants, and if necessary the appointment of members of the Board of Directors and/or the Board of Commissioners in accordance with the provisions of the Articles of Association at the end of the period of service or if they retire or resign before their term of office expires. Besides the above agendas, the company also reports usage of remaining IPO funds so long as any remain, an action that does not require the approval of the AGMS.


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GCG Implementation Oversight of the company is provided at the very highest level by the shareholders. At the Annual General Meeting of Shareholders (AGMS), the shareholders appoint a Board of Commissioners (BoC) and a Board of Directors (BoD) who share primary responsibility for ensuring that the Company operates in accordance with the principles of corporate governance. Various supporting functions have been established to assist them in this task such as the Audit Committee, the Good Corporate Governance, Nomination and Compensation Committee (GCGNCC), and the Corporate Secretary.

Annual General Meeting of Shareholders AGMS held on 28 March 2011, it was attended by representatives of 78.6% of the total shares issued by the Company and the results were as follows.

Agenda 1 and 2 1. Approved the Annual Report for the Financial Year 2010 2. Ratified: a. T h e A u d i t e d F i n a n c i a l Statement for the Financial Year 2010 by Public Account Tanudiredja, Wibisana & Rekan – Pr i c e w a t e r h o u s e Co o p e r s pursuant to their Report dated 23 February 2011. b. The Supervisory Duty Report of the Board of Commissioners. 3. Gave full acquittal and discharge to the members of the Board of Directors and those of the Board of Commissioners from any responsibility and accountability (acquit et de charge) for management and supervision they performed during the Financial Year 2010, provided that such acts appeared in the Company’s notes and books and were reflected in the Company’s Annual Report and Financial Statement for the Financial Year 2010.

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Agenda 3 Approved and determined the Use of the Company’s Net Profit of the Financial Year of 2009 in the amount of US$204.2 million as follows : 1. The amount of US$2 million determined as Legal Reserve in compliance with Article 70 of the Company Law No. 40 year 2007 and shall be used in accordance with the Article 27 of the Company’s Articles of Association 2. The amount of US$152.5 million or 75% of the net profit of the Financial Year 2010 determined as total final dividend with detail as follows : a. The amount of US$100 million has been distributed as interim dividend on 15 October 2010 based on the Board of Directors’ Resolutions in lieu of the Meeting of the Board of Directors effective on 25 August 2010 which has been approved by the meeting of the Board of Commissioners on 24 August 2010. b. The remaining amount of US$52.5 million or equivalent to Rp459 billion at the middle exchange rate of Bank Indonesia dated 21 March 2011 or equivalent to Rp407 per share will be distributed as cash dividend to the shareholders registered in the Company’s Shareholder List (Recording Date) on 25 April 2011 and payment date will be on 6 May 2011 3. The remaining of US$49.7 million will increase the Retained Earning to support the Company development 4. Further, gave power and authority to the Board of Directors to arrange the payment procedure for the said cash dividend

Agenda 4 Approved and Authorized the Board of Directors to : 1. Appoint Independent Public Account’s Office to audit the Company’s Financial Statement for the Financial Year ended on 31 December

2011 with provisions that the public Accountants’ Office so appointed is an independent Public Accountant’s Office registered at the Capital Market and Financial Institutions Supervisory Board (Bapepam and LK) 2. Determine the fee and other requirements in relation to the appointment of the Public Accountant with due regard to the recommendation of the Board of Commissioners

Agenda 5 Approved : 1. To delegate to the Board of Commissioners determination of the Board of Directors’ remuneration for the Financial Year 2011. 2. Determined the remuneration package for the Company’s Board of Commissioners at the maximum of Rp6 billion for 2011 and further authorized the President Commissioner to determine the distribution thereof among the members .

Agenda 6 1. Accepted the resignation of Mr. Rawi Corsiri as Commissioner and Mr. Aphimuk Taifayongvichit as Director in the Company. 2. A p p o i n t e d D r . S a t h i d p o n g Wattananuchit as Commissioner and Mr. Hartono Widjaja as Director of the Company effective as of the closing of this AGMS up to the closing of the AGMS to be held in 2013. 3. Released and discharged Mr. Rawi Corsiri and Mr. Aphimuk Taifayongvichit from the liabilities and responsibility for all actions taken during their term of office in the Company, including ratifying all actions taken on behalf of the Company, if any, during their term of office until the closing of this AGMS and expressed gratitude and appreciation for all their contributions to the company during their tenure.


After closing of the AGMS, the structure of the Board of Commissioners and the Board of Directors was as follows : The Board of Commissioners

The Board of Directors

President & Independent Commissioner: Ibrahim Yusuf

President Director: Somyot Ruchirawat

Commissioner: Somruedee Chaimongkol

Director: Pongsak Thongampai

Commissioner: Dr. Sathidpong Wattananuchit

Director (unaffiliated): Edward Manurung, SE,MBA

Commissioner: Ir. Lukmanul Hakim, MM

Director: Mahyudin Lubis

Commissioner: Rudijanto Boentoro

Director: Hartono Widjaja

Independent Commissioner: Prof. Dr. Djisman S. Simandjuntak

Board of Commissioners Composition & Appointment The composition of the BoC has been determined with reference to the GCG Policy of the company so that it contains enough members in proportion to the business and operations of the Company. BoC must consist of at least two members, comprising a President Commissioner and one or more Commissioner(s). Not less than a third of the members shall be independent Commissioners with no business ties or other ties to the Company that may affect their authority as an Independent Commissioner. Commissioners are appointed at the AGMS for three years, up until the closing of the third AGMS from the time of appointment. There is no prejudice to the ability of a General Meeting of Shareholders on dismissal of a Commissioner midterm, or on re-appointment after a term expires. Currently, the BoC consists of six members, of which two are Independent Commissioners. The term of office for the current member will be up to the closing of the Annual General Meeting of Shareholders (AGMS) in 2013 after their appointment on March 29, 2009.

The complete profiles of the BoC may be viewed on page 94-95 of this report.

Business Ethics As part of the BoC Charter, the BoC and its individual members shall serve as good role models in fostering the observance of the following basic ethical standards for the whole members of the organization, including avoiding conflicts of interest: • Insider Information BoC members shall prohibit the abuse of any material information with regard to the company business for personal benefit of his/her own family or that of any other third parties. • Confidentiality BoC members shall keep classified co r p o r a t e i n fo r m a t i o n s t r i c t l y confidential, especially internal information that may affect the business of the company or its share price • Trading Rules BoC members shall refrain from trading the company’s shares no fewer than 30

days prior to the information disclosure to the public if that information is a report based on an accounting period such as an operating result, financial statements and an annual report. In case the information is a report of corporate action in a particular situation such as acquisition/disposal of assets, connected transaction, joint venture/ cancellation of joint venture, capital increase/capital reduction, issuance of new securities, repurchase of own shares, payment or non-payment of dividend or incidents that affect the company’s share price, in such cases, the Board of Commissioners members shall refrain from trading the company’s shares from the period he/she learns of the information to the day the company discloses the information to public. • Anti-corruption ethics BoC members shall refrain and be prohibited from receiving gratification or take personal benefit from the company’s business relations with third parties.


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• Conflicts of Interest Any Commissioner having potential conflicts of interest regarding the matter which is under consideration by the board shall be required to leave the meeting while the matter is under deliberation. The Company’s Good Corporate Governance Policy Guidelines prohibit the Independent Commissioner from being a Director of another company that is affiliated with the Company. The controlling shareholder of the Company is a public company, where two of its top management are also members of the Company’s BoC.

Duties and responsibilities The BoC shoulders the responsibility of overseeing and advising the Directors on matters of corporate management and

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strategy including the implementation of GCG principles. The primary duties and responsibilities of BoC are set forth in the Articles of Association, and are further detailed into 21 items in the Company’s GCG Policy that include, among others, the determination of the debt to equity ratio.

and meetings, and an evaluation of each Commissioner’s independence. This assessment is the responsibility of the Good Corporate Governance, Nomination and Compensation Committee which will prepare a report for the board’s consideration. BoC members do not receive bonuses or stock options.

The BoC is assisted in its duties with regard to GCG by the Audit Committee and the Good Corporate Governance, Nomination and Compensation Committee (GCGNCC), both of which are established and report directly to the BoC.

Commissioners’ Maximum Age

BoC Performance Evaluation The performance of the Board of Commissioners shall be assessed annually on items such as strategic direction, policy, monitoring and supervision, accountability, structure, teamwork, training and development,

Commissioners shall retire at 72 years of age and such retirement shall be effective on the date of the following Annual General Meeting of Shareholders.

BoC Meetings in 2011 BoC convenes monthly meetings or at any time that it is deemed necessary by the members. In addition to BoC regular meetings, there are monthly BoC and BoD meetings to discuss about company’s performance and relevant issues to monitor the execution of


company’s strategic planning and work plan. Meetings of the BoC are deemed valid and entitled to adopt binding resolutions if more than half of the BoC members are present or represented at the meeting. Routine meetings are scheduled one year in advance, the agenda of the meeting is drawn up one week before the meeting, and materials for the meeting are distributed 3 days before the meeting. At each meeting of the Board of Commissioners it is obligatory to prepare minutes of meeting. This obligation is set forth in the Articles of Association and the Board of Commissioners Charter The BoC met 13 times in 2011, all of which were joint meetings with the BoD, with attendance as follows:

Position and Name

Number of Meeting Attended

Ibrahim Yusuf President & Independent Commissioner

13 times (100%)

Somruedee Chaimongkol Commissioner

13 times (100%)

Dr. Sathidpong Wattananuchit * Commissioner

9 times (100%)

Ir. Lukmanul Hakim, MM Commissioner

13 times (100%)

Rudijanto Boentoro Commissioner

13 times (100%)

Prof. Dr. Djisman S. Simandjuntak Independent Commissioner

13 times (100%)

* Dr. Sathidpong Wattananuchit replaced Mr. Rawi Corsiri as a Commissioner of ITM effective as of the closing of the 28 March 2011 AGMS.

Board of Directors Composition & Appointment

Business Ethics

As per the Articles of Association, there must be at least 2 (two) Directors, one of which shall be the President Director. Directors are appointed and dismissed at the AGMS. The term of office is for 3 (three) years and runs up until the closing of the third AGMS after appointment, without prejudice to the right of the shareholders to dismiss at any time or to reappoint the Director that has completed his/her term of office.

In keeping with its charter, the BoD and its individual members shall serve as a good role model towards the following basic ethical standards for the whole members of the organization, including avoiding conflicts of interest.

Candidates for the position of Director are recommended by the GCG, Nomination and Compensation Committee to the BoC and if approved, are brought to the GMS for approval. Currently, the BoD consists of five members, one of them is an un-affiliated Director. The term of office of the current members will be up to the closing of the Annual General Meeting of Shareholders (AGMS) in 2013 after their appointment on March 29, 2009. The complete profiles of the BoD may be viewed on page 96-97 of this report.

• Insider Information BoD members shall prohibit the abuse of any material information with regard to the Company business for personal benefit of his/her own family or that of any other third parties. • Confidentiality BoD members shall keep classified corporate information strictly confidential, especially internal information that may affect the business of the Company or its share price. • Trading Rules BoD members shall refrain from trading the Company’s shares no fewer than 30 (thirty) days prior to the information disclosure to the public if that information is a report based

on an accounting period such as an operating result, financial statements and an annual report. In case the information is a report of corporate action in a particular situation such as acquisition/disposal of assets, connected transaction, joint venture/cancellation of joint venture, capital increase/capital reduction, issuance of new securities, repurchase of own shares, payment or nonpayment of dividend or incidents that affect the company’s share price, in such cases, BoD members shall refrain from trading the Company’s shares from the period he / she learns of the information to the day the Company discloses the information to public. • Anti – corruption ethics BoD shall refrain and be prohibited from receiving gratification or take personal benefits from the Company’s business relations with third parties. • Conflicts of Interest Any Director having potential conflicts of interest regarding the


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matter which is under consideration by the board shall be required to leave the meeting while the matter is under deliberation. - The Company’s Good Corporate Governance Policy prohibit the Non-Affiliated Director from being a Director of another company. - Potential conflicts of interest between the Company and members of the Board of Directors are minimized by the fulfilling the obligation to disclose information to regulators and the public, and the Company has so far not adopted a stock option system.

Duties and responsibilities The Board of Directors (BoD) has primary responsibility for the day to day operations of the Company. The role, responsibilities and authorities of the Directors have been set up in the Articles of Association, and their specific functions and responsibilities have been elaborated on in the GCG Policy.

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The BoD establishes the Company’s business strategies as well as the annual work plan and budget including risk management, and with the agreement of the BoC, carries out these plans. Under the Articles of Association, the BoD must carry out meetings at least once every year or at any time deemed necessary by one or more members of the BoD or by shareholders representing 1/10 of the total number of shares with lawful voting rights. Meetings of the BoD shall be deemed valid and resolutions shall be binding if more than half of the total number of BoD members are present or are represented at the meeting.

BoD Performance Evaluation The BoD is evaluated on its performance on semi annual basis, with reference to Key Performance Indicators that are based on Long Term Drivers as well as the Single Year Targets set for that year, and aligned with the Company’s mission and vision. Additional factors that are

assessed include the BoD’s compliance with best practices and policies within an ethical framework.

Directors’ Maximum Age Directors shall retire at 60 years of age and such retirement shall be effective on the date of the following Annual General Meeting of Shareholders.

BoD Meetings in 2011 - The Articles of Associations of the Company and the BoD Charter has regulated about The Board of Directors effective meeting procedures to discuss the non-routine and routine agenda. The regular meetings schedule is prepared a year ahead. In practice, the Board of Directors’ meeting agenda is issued a week before the meeting and the meeting materials distributed 3 days prior to the meeting. - At each meeting of the Board of Directors, it is obligatory to prepare minutes of meetings. This obligation is set forth in the Articles of Association and the BoD Charter.


The BoD met 19 times in 2011, with attendance as follows: Position and Name



19 times (100%)

Pongsak Thongampai Director

19 times (100%)

Edward Manurung, SE,MBA Director (unaffiliated)

19 times (100%)

Mahyudin Lubis Director

19 times (100%)

Hartono Widjaja* Director

14 times (100%)

* Mr. Hartono Widjaja replaced Dr. Aphimuk Taifayongvichit as Director of the Company, effective as of the closing of the 28 March 2011 AGMS.

Ensuring BoC and BoD Independence Members of the BoC are assessed on their independence annually. Furthermore, Commissioners, Directors having an interest in any transaction must not take part in its approval process. Any Director having a potential conflict of interest in relation to a matter that is under consideration by the board must excuse himself / herself from the deliberation by the board. The Board of Director is required to have one non-affiliated Director as its member to help ensure the independence of the BoD. Share ownership by Individual Directors and Commissioners and may be found on page 17 of this report.

Report of Shareholdings to Regulators Shareholdings of the Company belonging to Commissioners, Directors and their families are monitored by the Company, and transactions of the Company’s shares by Directors and Commissioners are always reported to regulators and the public as well as in the monthly BoC meetings.

BoC & BoD Remuneration The remuneration package for BoD shall be reviewed periodically and recommended by the GCG, Nomination and Compensation Committee to BoC for GMS approval. And distribution to each director can be delegated from the GMS to the BoC which will be determined through BoC Meeting. Remuneration package for BoD members and its formula shall be based on the company and individual performance and specific assignment as well as up-to-date survey on market condition. Remuneration package for BoC is provided in the form of an honorarium, which is not related to the performance of the Company. BoC members do not receive bonuses or stock options.

Professional Competence Development of BoC & BoD In 2011, the Commissioners, Directors and Committee members participated in the following development activities to enhance their competency: • Director Professionalism-Master Class in New York, USA • Compliance Master Class–World Bribery & Compliance Forum 2011 in London, UK • Coaltrans Financing and Investing in Coal in Singapore • ERM Academy Asia Pacific Risk Management, Bali • Annual Coal Trans Asia Conference in Bali • Strategic Mine Closure in Kuala Lumpur • Executive Briefing on IFRS, Jakarta • Integrity Retreat, Jakarta • Internal Audit in the Perspective of Audit Committee, Jakarta

The Company does not implement stock option systems, and therefore Commissioners and Directors do not have short-term interests in the Company or its affiliates. In 2011, the total remuneration paid to the Board of Commissioners and Board of Directors amounted to Rp17.2 billion or equivalent to US$1.9 million.


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Corporate Secretary

As designated by the Corporate Secretary charter, this function is designed as an organ of assurance to assist the Board of Directors in meeting obligations to comply with transparency, a c c o u n t a b i l i t y, r e s p o n s i b i l i t y, independency and fairness as core elements of good corporate governance and to observe responsibilities visà-vis the Company’s workforce, the communities with which the Company interact and the natural environment in which the Company operates. The Corporate Secretary is established by the Company’s Board of Directors. The establishment of the corporate secretary function and the issuance of the Charter are aimed primarily at assurance that the Company’s actions are constantly aligned with the principles and rules of the corporate governance which the Company has adopted explicitly by way of formal decisions or implicitly through the promotion of corporate culture.

Duties and Responsibilities As laid out in the Corporate Secretary charter, the Corporate Secretary has a number of duties and responsibility. The function’s main responsibility is to assist the BoD in ensuring implementation of the GCG practices of a listed company. Specifically, the Corporate Secretary’s function is to: • Identifies governance risks that the Company is exposed to following decisions and actions by the Board of Directors, including: (a) Governance Risk, that might arise among others from the non-compliance issues and the imbalanced right and obligation between the company organ and the stakeholders, (b) Company reputation or image, that might arise among others from the insensitivity of the company to response the stakeholders input or customer complaint or low product or service quality, or late response to the public questions or inappropriate media handling, etc.

• Ensure compliance with corporate l a w, t h e Co m p a ny ’s A r t i c l e s o f Association, and capital market rules and regulations; • Maintain effective communications with stakeholders, in particular with capital market regulatory bodies; • Co o rd i n a te a n d a d m i n i s te r t h e activities/meetings of the BoC, BoD, and GCGNCC; • Administer share ownership records. • Instill the GCG principles as the company culture and embed the importance of GCG into the business process As of 28 December 2007, Ms. Roslini Onwardi was appointed to the position of Corporate Secretary at ITM. Her appointment as Corporate Secretary was made based on her more than 20 years of experience within ITM and its subsidiaries and from her extensive knowledge of the mining industry, especially within the areas of Legal Affairs and Human Resources. Ms. Onwardi earned a Master of Business Administration from Newport University in 1993.

Good Corporate Governance, Nomination and Compensation Committee Membership Structure & Independence Good Corporate Governance, Nomination and Compensation Committee shall consist of four members with threeyear terms of office in accordance with the member’s term of office as a Commissioner. To ensure the independency of the Committee, it is chaired by an Independent Commissioner and the other three members are Commissioner of the Company.

Duties and Responsibilities

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•

to monitor compliance with corporate governance policies and the Code of Conduct.

•

responsible for screening candidates for appointment as the company’s commissioners as well as securing appropriate succession plan for Directors

•

to suggest compensation policy, guidelines and procedures and other benefits in relation to Directors

•

to determine performance measurement criteria for Directors

Its duties among others are:

GCGNCC Report

•

The activities of the GCGNCC during 2011 were as follows:

to review and monitor corporate governance policies and Code of Conduct policies and guidelines.


• Recommended the annual salary adjustment and bonus payment for employees.

• Nominated and recommended the candidate for Commissioner and Director to replace the vacant position for Commissioner and Director. • Developed and recommended the BoC Performance Evaluation system • Developed the Committee work plan and budget for 2012. • Reviewed the existing practices and governance issues • Monitor the progress of each milestones and compliance toward the GCG implementation roadmap. • Reviewed and recommended the board members’ remuneration package. • To work on the special tasks from BoC on the governance structure, major commitment to third party.


Meeting Frequency The GCGNC meets quarterly or as requested by any member(s) or as needed. The GCCNCC met 6 times in 2011, with attendance as follows: Position and Name


Ibrahim Yusuf Chairman

6 times (100%)

Rudijanto Boentoro Member

6 times (100%)

Somruedee Chaimongkol Member

4 times (100%)

Ir. Lukmanul Hakim, MM Member

6 times (100%)

Biographies of the GCGNCC members, all of whom are Commissioners of the Company, might be found on page 94-95.

Audit Committee Membership Structure & Independence The Audit Committee, comprising three qualified people according to the Audit Committee charter, is to assist the BoC to oversee the company’s activities and to provide recommendations on remedial actions. In accordance with the letter of appointment from the BoC dated 27 May 2010, the Audit Committee members will be in office for three years, from 29 March 2010 until the closing of the 2013 AGMS. To ensure the independency of the Committee, it is chaired by an Independent Commissioner and the other two members are independent party outside the Company.

Duties & Responsibilities The scope of oversight concerns any matter and any report to be submitted to the BoC. Regular areas of concern to the Audit Committee include reviews of the Company’s financial reporting system, internal control, risk management and compliance. The Audit Committee regularly reviews quarterly and annual financial statements before submitted to Bapepam-LK and the Indonesia Stock Exchange. The review covers

of Audit Committee, a secretary, who is working on day-to-day basis as the Company’s Legal Head, has been appointed. The Secretary’s responsibility includes arranging regular meetings with the Internal Audit Department. In those meetings, the Internal Audit head explains all phases of his department’s work, including annual audit plan, priority on high risk areas, audit reports and conclusions, and monitors the follow-up of suggestions and recommendations in audit reports. Any discrepancies and findings, which are considered significant by the Audit Committee, are discussed with Internal Audit head, and reported to the BoC for further follow up and improvement.

accounting policy, its implementation, and transparency. Assessment of the effectiveness of internal control over financial reporting is based on International framework standard issued by Committee of Sponsoring Organizations (COSO). Particular attention is paid to identify and clarify potential problems that require BoC or BoD action, and Advice and recommendations are also provided to the BoC on any proposals which require approval at GMS. Exceeding regulatory requirements, all three members of the Audit Committee are independent members.

Meeting Frequency Meetings are conducted monthly or as necessary. To facilitate the Audit Committee’s duties, including taking care of technical administrative matters

In 2011, there were 12 meetings with attendance as follows:

Position and Name


Prof. Dr. Djisman S. Simandjuntak Chairman and Independent Commissioner

12 times (100%)

Davy Indra Kurniadi Member

9 times (80%)

Myrnie Zachraini Tamin Member

11 times (92%)


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Audit Committee Report The company established the Audit Committee in 2008 with a view to assuring compliance with the principles of and rules on good corporate governance as stipulated in the capital market supervisory agency decision no 29-PM/2004. By providing audited information to the BoC, the level of transparency in the company is enhanced. As of end of 2011 the Audit Committee consists of Prof. Dr. Djisman Simandjuntak serving as chairman, and Mr. Davy Indra Kurniadi and Ms. Myrnie Z. Tamin as members. All three have served on the Audit Committee since 2008. The Audit Committee reports to the Board of Commissioners. All members of the Audit Committee are independent from the Company, including the chairman who is an independent member of the BoC. The Audit Committee’s codes of conducts are stipulated in the Audit Committee charter which was approved by the BoC. The Audit Committee assists the BoC in overseeing issues related to financial reporting, effectiveness of internal and external audit processes and compliance with relevant regulations with the aim of ensuring that the BoC is supplied with high quality financial information which is needed in its supervisory works. In addition to the issues of compliance with laws and regulations the monitoring of enforcement of recommendations on remedial actions is an integral part of the Audit Committees works, always with the intent of keeping the BoC well informed about internal developments in the company as well as about relations with external stakeholders. ITM has made it a commitment to present any financial reports to the Audit Committee for review prior to issuance to third parties. Through frequent and intensive communications with the Board of Directors, the Internal Auditor, and External Auditor as well as ad-hoc investigations on its own initiative,

78


the Audit Committee is able to form a fair judgment on the conditions of the company which is then shared with the BoC in formal meetings. The supervisory works of the Board of Commissioners are, thereby, aided, to the benefit of ITM’s shareholders and broader stakeholders. Throughout 2011 the Audit Committee reviewed all financial reports of the company prior to submission to Bapepam-LK and the Indonesian stock exchange. Using the international framework standard issued by the committee of sponsoring organization (COSO) Accounting policy and practices were reviewed and found as high standard. To facilitate its works the Audit Committee cooperates closely with the internal audit department. Technical and secretarial services were performed by the Company’s legal head. In the meetings with Internal audit processes of auditing were discussed, including the annual audit plan, high risk areas that deserved to be attached a high priority in audit works, audit report and conclusions, recommendations as well as the results of monitoring on the implementation of the recommendations. Any major finding is discussed thoroughly in the meeting of the Audit Committee and the Internal Audit department before it is reported to the BoC for further follow up. As regards the year 2011 the Audit Committee concluded that the internal audit function has been conducted in accordance with the risk based audit approach. In 2011 the Audit Committee met with the external auditor on a quarterly basis. Audit plan, quarterly financial statements, and the result of the financial statement audit were reviewed. Sufficiency and objectivity of the external audit were also evaluated. The Audit Committee concluded that the external auditor has conducted the external audit in

accordance with the auditing standards established by the Indonesian institute of public accountants both in planning and in implementation. All key risks have been assessed during the audit. Internally the Audit Committee met 12 times in 2011. The agenda throughout the year included, but was not limited to: 1. Mine closure plan, with the recognition that PT Jorong Barutama Greston is currently preparing a comprehensive mine closure plan. 2. Co m m u n i t y d e v e l o p m e n t a n d corporate social responsibility at ITM level and at subsidiary companies, recognizing that the company has pre-committed itself to a substantial CD and CSR programs. 3. Asset management, particularly as regards reconciliation between Maximo and Oracle. 4. Investment policy, such as acquisition of new reserves. 5. Compliance with procurement policy and SOP. 6. C o m p l i a n c e w i t h s e l e c t e d government regulation such as the one on expatriate employees. The Audit Committee as team visited PT Jorong Barutama Greston with the aim of gathering comprehensive mine closure plan information. On the occasion a number of projects were discussed with relevant officers. Based on all the reviews, discussions, and observations made throughout the year, the Audit Committee concludes that audit works have been performed in the company in accordance with prevailing standards. Brief biographies of Audit Committee members may be found on page 98 of this report.


Policy on Risk Management Board of Directors has adopted a risk management system for all material and controllable risks which may affect the company’s operations. This includes risks relating to the achievement of the company’s vision and implementation of its strategies as well as risks in relation to the financial condition of the company, its operations and other relevant areas. Risk management is carried out on the basis of that an identified risk may materialize and the likely impact of such a risk may have on the business. In addition, clear preventive and mitigation measures have been established. Systems to assess, monitor and report on risks have been set up. A Risk Management Committee has been set up that reports to the Board of Directors on its operation plans and performance and also regularly reports to the Audit Committee.

Risk Management Committee The Risk Management Committee was formed in 2008 to provide the BoD with information directly relating to the Company’s risk profile. Although the Risk Management Committee was formed to directly assist the BoD in the management of risk, continuous and consistent diligence by each subsidiary to maintain and update systems is central to our risk management strategy. This Committee identifies, measures, and mitigates risk, then embeds it within all stages of planning and operations. The R isk Management Committee convenes regular ly to assess r isk management efforts and coordinates with other compliance bodies to provide a comprehensive assessment. Part of the regular flow of information includes both monthly operational risk reports and quarterly non-operational risk reports. Should a particular risk indicator increase unexpectedly, immediate steps can be taken to address this.

ITM assesses risk in an integrated manner but, for the purposes of organization, ITM separates risk into six main sections: Financial Risk, Coal Business Risk, Regulatory Risk, Contractor Risk, Environmental Risk, and Social and Community Relations Risk.

Financial Risk • Coal and Fuel Price Risk By using coal swaps and gas and oil swaps, the ITM tries to mitigate risk of price fluctuations. In addition, the company has had the Commodity Risk Management Committee which meets biweekly to discuss the current coal market and oil-gas market, and determines hedging strategies as needed to take out the risk in price fluctuations vs contract delivery price. • Exchange Risk As it deals in foreign currencies, the Company adopts hedging to reduce exposure to shifts in currency valuations. Balance between foreign currency earnings and costs can also be maintained.

Coal Business Risk • Coal Market Volatility Risk Significant changes to either coal prices or coal demand pose a threat to cash flow. A steady growth of customer base has also succeeded in reducing risk of large coal demand fluctuations. • Coal Quality and Delivery Risk To guard against problems in coal quality and delivery, ISO standards have been put in place. Coal quality assurance risk has decreased in the last three years in part due to the new on-site Bontang Coal Laboratory, which has been able to accurately and speedily test all coals prior to delivery. Current expansion of the BoCT has increased delivery risk due to potential construction related events. However, a variety of alternate shipping facilities are available to ship coal in the event of a BoCT shut-down. These include mechanisms for sea-

loading, and re-directing ships to ports in PT Jorong Barutama Greston, PT Kitadin (Embalut), PT Trubaindo Coal Mining and others. The completion of TPM systems at PT Indominco Mandiri (including the BoCT) has also reduced risk associated with equipment and/or equipment systems failure, largely due to reduced equipment systems failure because of TPM (the TPM Effect). • Weather Risk The island of Borneo is at times a very rainy place. The risks associated with unusually heavy rains include work slowdown or stoppage, equipment failure, and road wash- outs. To minimize these risks, production scheduling based on weather prediction balances demand and inventory costs to ensure targets are met regardless of extraordinary rains. In addition, ITM has invested in ditches, improved road construction and re-landscaping to prevent rain from interfering too significantly in the production process.

Regulatory Risk The Company at all times complies fully with all local, regional and national laws and regulations. However, changes to regulation or disagreements over interpretation may at times increase costs or necessitate changes in operating procedures. Both the Company’s legal team and outside legal counsel are on hand to evaluate all legalities and recommend appropriate action.

Contractor Management Risk Over 80% of all ITM coal is mined by independent contractors. The institution of the CMS has helped increase productivity and safety for better oversight of performance quality.

Environmental Risk Required environmental studies and assessments are conducted on all operations and are divided into three stages: Pre-Operation, Operation, and Post-Operation. The removal of


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overburden and extraction of coal necessarily disrupts the environment and the Company’s is committed to restore the environment to its pre-mining condition in keeping with regulations as well as the expectations of stakeholders. As well, industrial discharges are handled according to government regulations. • Pre-Operation Stage An EIA is conducted on a projected site and reviewed with government bodies. Included within this assessment are an environmental damage mitigation plan and an environmental monitoring plan covering the duration of the operation. • Operation Stage At this stage, monitoring is ongoing and changes to procedures can be recommended. Risk is involved at this stage as changes on the ground may require deviation from the plan. However, changes in production levels and processes are fully discussed with relevant government bodies and agreed upon before proceeding. Compliance with reforestation requirements is monitored on a yearly basis. • Post-Operation Stage ITM has produced Mine Closure Documents, in compliance with Government Decree No. 78/2010 on reclamation and mine closure. Ongoing assessments of the progress

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of rehabilitation will help ensure that ITM has conformed to its plans. Communication with interested parties will also help to assess whether agreed upon environmental goals have been met.

Social and Community Risk ITM, individually and through its subsidiaries has a great deal of experience and a multi-targeted Community Development program, as part of the CSR. Through intensive consultation with local communities, risk of social conflict is greatly reduced, the benefits of the coal mines are shared and good will is created.

Internal Audit Internal Audit plays significant role in exercising control activities over PT Indo Tambangraya Megah, Tbk business activities. In accordance with the regulations of the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK), Internal Audit reports directly to President Director and distributes the copies to the Audit Committee. In addition Internal Audit coordinates closely with various functions in PT Indo Tambangraya Megah Tbk in conducting audit activities. Risk Based Audit methodology are always used when Internal Audit develops the

annual audit plan. Internal Audit also applies the COSO control concept in determining audit objectives, which covers three primary objectives and five essential components. Internal Audit’s main function is to ensure that internal control, efficiency and effectiveness have been properly applied in company’s business process by conducting regular audits. Internal Audit also provides consulting service to the related units, with the purpose of assisting management in achieving their business targets and objectives. During the year 2011, Internal Audit conducted 23 audit activities as planned and 2 ad hoc audits as requested by management. In order to facilitate the audit activities, since 2008 Internal Audit has utilized the audit database system, where the automation of audit recommendation follow up also using a web based and real time follow up system. Internal audit also utilizes various application to strengthen audit analysis such as Oracle financial, Maximo system, etc. In carrying out its roles and responsibilities, the Internal Auditor shall be guided by the Internal Audit charter that has been approved by the President Director and Audit Committee on 9 November 2009.


“Tone at the top’” refers to how the management of PT Indo Tambangraya Megah Tbk creates an ethical atmosphere and integrity in the workplace. Management as a role model gives full support to audit activities. High ethical values and a supportive environment have supported Internal Audit to be able to work independently and professionally. Close coordination with the management and audit committee are promoted and exercised on regular basis. As part of the GCG, Internal Audit had stimulated open and reliable communication mechanisms. As a result, the company launched an official Independent Whistle Blower Center (IWBC) in early 2011, and now all parties have a reliable, free and confidential channel to raise their concerns. Currently, Internal Audit is supported by 7 auditors led by Mr. Sugeng Slamet as Assistant Vice President of Internal Audit. To empower Internal Audit resources, relevant training and competency development are continuously performed to enhance the Internal Auditor’s skill and knowledge in an effort to meet international standard practices.

External Audit The External Audit plays an important role in independently verifying and controlling the company’s results. The external auditor is appointed by the Audit Committee. At the 2011 AGMS, P u b l i c A c c o u n t a n t Ta n u d i r e d j a , Wibisana & Rekan, a member firm of PricewaterhouseCoopers was selected as the external auditor. During the 2011 fiscal year, the Audit Committee held various meetings with the External Auditor, discussing the risk -based audit plan, the limited review on the quarterly financial statements, and the result of the financial statements audit as well as evaluated the sufficiency and objectivity of the External Auditor in relation with the financial statements. The Audit Committee concluded that the External Auditor has conducted the audit in accordance with the auditing standards established by the Indonesian Institute of Certified Public Accountants, both in planning and implementation, and that the External Audit has been planned and implemented so that all key risks have been addressed.


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Corporate Social REsponsibility and Community Development

Community Relations ITM is aware that our existence as a business entity is integrated with the community. The term “community” encompasses but is not limited to those who live in the mining operation areas that are the target of most of our Community Development programs. This is in line with the Company’s intention to bring more extensive benefits to stakeholders. As part of our responsibility to the society and the nation, we carry out Community Social Responsibility (CSR) programs on

82


a national level, as well as Community Development programs around the mine sites that we work in. Coordinated under the umbrella of the CC department, these programs embody our commitment to give back and realize the society’s potential for a better life. The task of carrying out our CSR activities is divided amongst several bodies and represents our objective of delivering sustainable benefits to the receiving communities, thus benefiting

all stakeholders including ITM itself. In addition to communications functions by other corporate bodies, we have dedicated departments to oversee effective lines of communication with a variety of stakeholders. Comprising both external and internal lines of communication, these resources seek to engage a variety of parties, including the communities we work with, to communicate our goals and actions.


Corporate Social Responsibility In 2011, CC implemented the fourth year of our five-year commitment to education, as a means to engage the general public and fulfill our obligations to society.

Launched in 2008 with the theme of “Spreading Knowledge, Achieving Dreams” (Menebar Ilmu, Menggapai Cita), our ITM for Education program aims to elevate the quality of education in Indonesia. The program has reached thousands of participants, many of whom live in remote areas around our mining sites.

Program Structure This aim has traditionally been carried out through three sub-programs: Mining for Children, Volunteer Action, and Smart Teaching. The first reaches out directly to early age and elementary school children, the second empowers volunteers, and the third concentrates on teachers, in a holistic and empowering cycle. Other additional sub-programs are under consideration for the future.

(Volunteer@ction Programme)

(Smart Teaching Programme)

The ITM “Mining for Children” program aims introduce and explain the coal mining industry to children, broadening their horizons and knowledge on fossil fuels as part of their education in natural sciences. Starting with the publication of children’s storybooks on coal, we continued with elementary school visits to elaborate on the content of the books through storytelling, science experiments, games and other methods. The children become “Mining Buddies” through this program. This program is held both in Jakarta and near the sites where we operate mines. Volunteer Action is a capacity building program that has been specifically designed for teachers and volunteers in non-formal education who conduct activities in the Jabodetabek area. The program aims to improve the teaching

(Mining for Children Programme)

(On Mining Generation)

quality of teachers and volunteers in providing alternative education to their students through workshops and seminars. Our Smart Teaching program aims to improve the quality of elementary school teaching in Indonesia, by providing capacity training and resources across various districts. This objective of this program is to elevate the abilities of the primary school teachers involved. Many activities are covered by this program, but all fall under teacher training with a modern perspective. The topics covered include creative teaching, library management, teaching by reading aloud, effectively communicating with pupils, etiquette, and morality. Teachers, who rarely enjoy such stimulus, emerge with improved skills and fresh motivation. They are encouraged to read more books and find more references before entering the classroom, and are inspired to read aloud in class. They value reading more, and are motivated to be more creative and innovative. Altogether, these three areas holistically address the main actors in education at a grass-roots level. By improving teachers’ capabilities, providing reading materials and introducing new ideas to children, and helping volunteers engage more effectively, it is hoped that these areas can reinforce one another to create synergies and improved results for the long term.


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Community Development Activities and Impact in 2011 In 2011, our CSR activities focused inspiring a love for reading in children, both by making reading materials available and by educating teachers to use story telling as an effective method of teaching. By doing so, it is hoped that a future generation of children will grow up with inspired and open minds, to become future leaders. To this end, throughout the year we arranged school visits, story-telling, teaching workshops and book donations to all mine sites, as well as to selected schools in the Jabodetabek area on Java. Volunteers from ITM were recruited to engage in some of these activities, to strengthen the interaction between the community and ITM. Teachers especially appreciated these activities and found them useful. We also participated in a number of exhibitions such as the Indonesia Environment and CSR Week Exhibition, the Indonesian Mining Exhibition 2011, a forestry exhibition called “Hura Rimba”, a CSR Expo, and the National Farmers and Fisherman’s National Week Exhibition, during which large numbers of mining-related children’s books by ITM were given away. Finally, the groundwork was thoroughly prepared for 2012 activities, in which we plan to continue and deepen our emphasis on site visits in an effort to embrace the community and improve the quality of education in these remote areas. Building on the efforts of 2011, the quality of teaching in particular will be a particular focus, as improvement in one teacher can benefit many students, creating an ever-broadening impact on society.

ITM engages in Community Development activities in compliance with pertinent government rules and regulations, but more importantly as part of its commitment to give back to society.

Targets and Objectives The aim of our Community Development program is to improve the quality of life for the communities around our mine sites. We are further cognizant that after our departure, the community needs to be adequately prepared to handle the subsequent slowdown of the local economy by preparing them to be socially and economically self-sufficient. Consequently, our


In 2011, ITM allocated Rp 18,061 million towards Community Development programs across all sites, compared with Rp17,359 million in 2010.

(Units in Rp million)

18,500.00

18,061.40

18,000.00

17,500.00

17,000.00

17,359.04

2010

2011

Program Types & Allocation In order to achieve our target and objectives in a holistic manner, we have four types of program categories which are designed to reinforce one another: • Economic Development Aims to improve the economic welfare of communities by providing access to capital and skill development as well as support for economic activities using available local resources. • Social Development Aims to improving the quality of life in communities through the provision of

84

Community Development programs are primarily concerned with empowering the community with a view towards improving beneficiaries’ quality of life, and nurturing good relations between ITM and local stakeholders so that ITM for harmonious relations.

health care and educational facilities as well as programs to help preserve local arts and culture. • Environmental Protection Aims to improve community awareness as to the importance of preserving the environment. • Community Relations Aims to ensure that ITM and the community’s perceptions are aligned and to improve the quality of ITM’s interactions with the community as well as with that of other stakeholders.


2011 vs. 2010 program budget allocations:

17%

4%

20%

Economic

5% 28%

12%

Education Health

2010

Social Culture

2011

14%

Infrastructure 13%

4%

35% 11%

34%

5%

Community Relations & Environment Donation/Operational Environment

Planning Process & Guidelines Activities within each program area are developed for each site in a bottom-up, participative manner that engages the local community and ITM, and involves the local government. The mechanism is the Community Consultative Committee (CCC), while the framework and parameters for our Community Development programs have been laid out in a major study carried out by an outside, independent c o n s u l t a n t . We a l s o r e f e r t o t h e Community Involvement aspect of the ISO 26000 guidelines, which Community Development achieved in 2010. To determine particular activities for each program, communities are first asked to conduct social and economic mapping of local conditions and resources, facilitated by Community Development Officers (CDO) from ITM, and selected outside resources. The results from these surveys become the basis for the selection of programs by the CCC established in the respective fostered villages or areas, representing local leaders and community members. The various CCCs, consisting of local government representatives, CDO and community leaders, meet in the second quarter to discuss program priority and selection in

a participative manner. Program priorities and selections are revised as needed from time to time with consideration of budget, activity time frame, availability of skills, and potential local resources. In the CCC meeting, members discuss the various program proposals to ensure that they represent the actual needs of the majority community in the villages and will therefore benefit the greatest number of villagers. Thus, program selection is not made based on wishes or unreasonable demands from certain individuals or small involved groups, but by agreement of community members through their representatives in the CCC. The programs that are selected are adopted into ITM’s and the governmental Department of Energy and Mineral Resources’ annual budget and work plan (RKAB). As a result, the programs that are selected generally enjoy a high level of support and participation from the community. They are also appropriate to the characteristics of the community and the local surroundings. At the same time, the CCC performs an important function for ITM and the local government, by keeping harmony between ITM and the surrounding communities.

Evaluation, Supervision & Oversight Community Development programs are monitored on a qualitative as well as a quantitative basis. Progress reports are periodically logged from the site into our Community Development Management Information System (CDMIS), an online data base information system to monitor the progress of the Community Development programs at various sites. One of the measures of success of a Community Development program is the level of active participation from the community, the local government, and the Company itself. Active participation is a good indicator that the community is engaged and supports the activity, suggesting some form of capacity building is underway. Another measure of success is the emergence of spontaneous new activity, especially economic activity. The success of these Community Development programs are ultimately evaluated according to the CD framework and success parameters previously established as mentioned above. These success parameters, which were established together with an outside consultant, vary for each type of program.


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To e v a l u a t e o u r p r o g r a m s , o u r Community Development programs are periodically reviewed by an independent, outside consultant. The results of these evaluations will be used as a basis for further improvement and further steps. This reflects the company’s system of PDCA (Plan – Do – Check – Action). Finally, to share the news, we publish a newsletter every two months called Bubuhan on our activities. Also, at the end of the year, we publish a Community Development Annual Report.

2011 Activities & Impact Program activities in 2011 built on our work in 2010. Many of these activities are on-going, small-scale grass roots initiatives whose success is difficult to measure. In general, the majority of our programs have shown good progress overall, not only in terms of beneficiaries but more importantly in terms of helping local communities to develop the capacity to plan, execute, and supervise development projects on their own initiatives based on sustainable practices and utilization of local resources and potential, for better quality of life in the long-term independent of ITM. It should be noted that the site with the most activity was PT Jorong Barutama Greston, which is nearing mine closure and therefore needs to be prepared for production to end. At the Jakarta headquarters, training packages were prepared based on government Green PROPER regulations to improve the competencies of Community Development personnel. In addition, the parameters for each program were adjusted based on government PROPER regulations. The CDMIS was updated to reflect this.

For the sites, our leading program achievements in 2011 were as follows for each site.

PT Indominco Mandiri 1. “Hidup Baru” Seaweed & Seaweed Meatballs (Women’s Group) Program Sector: Economic Community Impact:

Impact: Start 2006

Change

30

102

240%

Nets

35

418

1094%

Stalls

1

4

300%

Income


End of 2011

Work groups

Work group stalls

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have been attracted to join these new farming groups. Variations of dry seaweed species have also contributed to the sustainability of the enterprise. Meanwhile the women’s seaweed meatball noodles have developed thanks to training and processing facilities. The residents enjoy these meatball noodles enough to sustain the initiative. Monitoring took place with reference to CD Success Parameters.

Empowering the “Hidup Baru” seaweed group in the village of Teluk Pandan-Kutai Timur as well as a women’s group making sea weed meatball noodles in the village of Bontang Lestari - Bontang city. Assistance in the form of seaweed seeds, boats, nets, and training and marketing assistance has improved the businesses of the farming group. The farmers are attracted to farming seaweed and new members

8

29

263%

300,000

700,000

133%


2. Indominco Home Industry Team Program Sector: Economic Community Impact: Empowering the “Home Industry Team Indominco” - HITIM team, leveraging the role of women and the potential of the surrounding environment to product traditional foods on a “one village one product” basis. HITIM developed after receiving training and plant seeds, undergoing trials and obtaining PIRT (Perijinan Pangan Industri Rumah Tangga) and LPOM (Lembaga Pengawasan Obat dan Makanan) certification, and creating attractive packaging. This program has strengthened ties

between farmers and processed food working groups. Products include fish and shrimp products from Teluk Pandan village, instant ginger from Suka Rahmat and Kandolo, banana chips from Suka Damai, snakefruit sweet paste in Martadinata village, papaya and corn sweet paste from Danau Redan, seaweed sweet paste and syrup from Bontang Lestari village, pineapple and squash paste from Santan Tengah, and the breakthrough of a communal sales point. Monitoring was done with reference to CD Success parameters.

Impact: Start 2005

End of 2011

Change

Members

31

79

155%

Production (product)

11

17

55%

175,000

440,000

151%

Income (Rp)

PT Jorong Barutama Greston 3. Sasirangan batik Program Sector: Economic Community Impact: Developing the craft of making traditional Sasirangan textiles in Karang Rejo village, Jorong sub-regency, Tanah Laut regency, South Kalimantan Through training, capital loans, trials, comparative studies, and packaging. At first the program began with making motifs for the cloth, then expanded to include clothes and home accessories like tablecloths and laptop bags made

from Sasirangan batik. Increases in project types were monitored with reference to CD Success Parameters. The sustainability of the business was supported by company events, local residents, other villages, exhibitions at local and national level including CSR Expo, Sasirangan batik lover’s movement, and the start of marketing efforts in the area.

Indicators: Start 2009 Work groups Production (pieces) Income (Rp)

8

End of 2011

Change

17

113%

152

497

227%

65,000

270,000

315%


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4. Bokashi fertilizer Program Sector: Economic Community Impact: fertilizer processing phase, trials and packaging. Processing ability has been monitored according to CD Success parameters. The initiative can continue by fulfilling the orders of farmers in and around the village of Jorong, company reclamation, and participating in Tanah Laut regency level and CSR Expo national level exhibitions to develop the market.

An organic bokashi fertilizer center using waste materials (in line with a zero waste policy) was set up in Jorong sub-regency in Tanah Laut, South Kalimantan. Bokashi fertilizer combines plant waste, waste from cows and used charcoal, into a product that can be reused by farmers. This initiative has developed through a training phase, Indicators: Start 2010

End of 2011

Change

Individual members

11

24

118%

Production (tons)

3.5

9

157%

150,000

550,000

267%

Income (Rp)

PT Kitadin (Embalut) 5. Floating net fish cages Program Sector: Economic Community Impact: Floating fish cage farming was set up in a post-mining lake as a center of fish production in the village of Bangun Rejo, Kutai Kertanegara, East Kalimantan. The cultivation of tilapia and catfish developed with training and assistance of stock, and among the fish, white tilapia is favored. The post mine pit lake is back in use and its large capacity for fish has been able to serve the needs

of the residents and restaurants around Embalut village, Samarinda city, and Tenggarong regency thus ensuring the continuity of the business. Monitoring was adjusted to CD Success Parameters. This program site was also used for a national comparative study by the National Farming association (Pertanian Nasional, PENAS) and the Department of Mining for the whole of Indonesia.

Indicators: Start 2005 2

10

400%

Fish cages (units)

2

8

300%

850

6,000

606%

2,150,000

14,500,000

574%

Income (Rp)


Change

Individual members Production (kg)

88

End of 2011


6. Giant Cassava Program Sector: Economic Community Impact: Empowering farmers of giant cassava on post-mining land in the village of Embalut, Kutai Kertanegara regency, East Kalimantan. Giant cassava is a new variety of very large cassava with a smoother taste. The initiative has developed with the help of training,

seed assistance, and addition of organic fertilizer. Guidance was carried out in accordance with CD Parameters. Its cultivation has encouraged a trial group to try processing cassava into grains, chips and cakes, an effort that will be further helped by marketing initiatives.

Indicators: Start 2010 Individual members

Change

7

24

243%

548

972

77%

1,700,000

3,450,000

103%

Production (kg) Income (Rp)

End of 2011

PT Trubaindo Coal Mining 7. Medical Services Program Sector: Health Community Impact: “MediCare” was given for children and the elderly in eight villages in the sub-regency of Kutai BaratKalimantan Timur, specifically Muara Bunyut, Muara Begai, Lotaq, Besiq, Penarong, Suakong, and Dilang Puti.

The tools and doctors were provided by ITM and local Puskesmas. “MediCare” periodically goes on safari around the villages. Posyandu health cadres participated, thus improving service overall.

Indicators:

Patients (elderly)

Start 2010

End of 2011

Change

285

470

65%


89

PT Bharinto Ekatama 8. Mechanics training Program Sector: Social Community Impact: Automotive training for high school graduates from five villages in the sub-regencies of Bharito Utara-Central Kalimantan and Kutai Barat-East Kalimantan. The training on cars and motorcycles was done together with

experts from TRAC, a transportation mechanics company. Ten students from the villages of Benangin 1, Benagin 2, Benangin 5, Besiq and Bermai took part and the five best alumni were given employment by TRAC.

Indicators:

Trainees

Start 2010

End of 2011

Change*

10

8

-20%

* Decreased as trainees found jobs

PT Kitadin (Tandung Mayang) 9. The development of Scholarships and educational facilities Program Sector: Education Community Impact: Scholarships were given to four university students based on their achievements, who had come from villages in the Teluk Pandan subregency. The education facilities in the

form of teaching materials and books were given to boarding schools and elementary schools in Teluk Pandan sub-regency.

Indicators:

Students

90


Start 2010

2011

Change

0

4

400%

Responsibility for the Annual Report 92

Responsibility for The Annual Report 2011

94

Corporate Data

94

Board of Commissioners Profile

96

Board of Directors Profile

98

Audit Committee Profile

99

Directory

100

Glossary

Responsibility for the annual Report 2011 Board of Commissioners

92

Ibrahim Yusuf

Somruedee Chaimongkol

President and Independent Commissioner

Commissioner

Rudijanto Boentoro

Ir. Lukmanul Hakim, MM

Commissioner

Commissioner

Dr. Sathidpong Wattananuchit

Prof. Dr. Djisman S. Simandjuntak

Commissioner

Independent Commissioner


R esponsibility for the A nnual R eport

Board of Directors


Pongsak Thongampai

Edward Manurung, SE, MBA

Director

Director

Mahyudin Lubis

Hartono Widjaja

Director

Director


93

Corporate Data Board of Commissioners Profile Ibrahim Yusuf Indonesian citizen, 66 Ibrahim Yusuf was appointed as Independent Commissioner on 17 April 2009 and further appointed as President Commissioner on 29 March 2010. Previously he was a career diplomat with over 20 years of experience, mostly in developed countries. He graduated from the Asian Institute of Journalism in Manila in 1993 and Lemhanas in 1996. He has received the following medal and awards: Loyalty & Dedication (Satya Lencana Karya) presented by President of Republic of Indonesia in January 2002; Knight Grand Cross (First Class) of the Most Exalted Order of The White Elephant conferred by His Majesty King Bhumibol Adulyadej in recognition of the service to the state, Bangkok in April 2008; and an award ward conferred by President of Mae Fah Luang University for the contribution for the enhancement of the bilateral cooperation in education, Chiang Rai in November 2008.

Somruedee Chaimongkol Thai Citizen, 51 Somruedee Chaimongkol was appointed as a Commissioner of the Company in 2007. She first joined Banpu in 1983 where she has held various positions including the role of Chief Financial Officer since 1999. She began her career at Banpu and has had 24 years experience in the mining industry. She currently holds directorships in a number of Banpu companies and is currently chairman of the Banpu Provident Fund. She is a member of the Banpu Risk Management Committee and the Commodity Risk Management Committee. She earned a degree in accounting from Bangkok University, Thailand in 1983 and graduated from the Harvard Business School, Boston, USA, program for Global Leadership in 2000.

Ir. Lukmanul Hakim, MM Indonesian citizen, 59 Lukmanul Hakim was appointed as a Commissioner of the Company in 2007. Prior to being appointed as a Commissioner of the Company, he was the Human Resources Director of the Banpu Group of companies in Indonesia where he has held variety of positions since 2001. He began his career with Indocement in 1978 where he worked until 1992 before being assigned to Indominco where he remained after Banpu acquired the Company. He obtained his Mining Engineer from Bandung Institute of Technology in 1978 and earned his Magister of Management from Prasetya Mulia Business School in year 2001.

94



Dr. Sathidpong Wattananuchit Thai citizen, 52 Sathidpong Wattananuchit was appointed as Commissioner of the Company in 2011. Prior to joining Banpu Public Company Limited, he began his career in the infrastructure/transportation industry for 3 years at the Bangkok Mass Transit System in HR & Administration and at Tanayong Public Company as VP HR & Administration (also acting as Legal Manager). Afterwards, he spent 7 years in Finance and Securities industries at Nithipat Capital Public Company Limited as VP HR & Administration and Peregrine Nithi Finance and Securities Company as HR Manager. He joined Banpu PCL since 1998 as Vice President HR and in 2004-2005 as Senior Vice President Internal Audit. During 2006-2007 he was assigned as Group Senior Vice President for Corporate Services and from 2007 until present has been appointed as Assistant CEO for Corporate Services.

Rudijanto Boentoro Indonesian citizen, 59 Rudijanto Boentoro was appointed as Commissioner of the Company on 29 March 2010. Prior to being appointed as Commissioner, since 1986 he spent most of his career in the Marketing area of the group until he was appointed as a Director from 1994-2009. He also held the position of Senior Vice President Marketing for Japan, Europe, South and North America. Before joining the group he worked for PT Astra Graphia in its computer division during 1981-1986 as a Marketing Support Specialist. He graduated from the Faculty of Economy of the Catholic University of Parahyangan Bandung in 1981.

Prof. Dr. Djisman S. Simandjuntak Indonesian citizen, 65 years old Djisman S. Simandjutak was appointed as an Independent Commissioner of the Company in 2007. He began his career as an auditor at SGV-Utomo in 1973. In 1984 he became Head of the Government Department of Economic Affairs in Jakarta. In 1999 he was appointed Chairman of the Board of Trustees of the Centre for Strategic International Studies in Jakarta. He currently holds the role of Executive Director of Prasetya Mulya Business School in Jakarta as well as the position of Chairman of the Board of Trustees of the Centre for Strategic International Studies. He obtained his Bachelor of Economic degree from the Catholic University of Parahyangan, Bandung, Indonesia in 1973, his Diploma in Monetary Economic and Public Finance at the University of Cologne in 1979 and his PhD. in Economic at the same University of Cologne in 1983.


95

Board of Directors Profile Somyot Ruchirawat Thai citizen, 57 years old Somyot Ruchirawat joined the Company in 2001 and now holds the position of President Director. He has had 15 years of experience in the mining industry. He joined Banpu in 1995 where he held the position of Managing Director of MRD-ECC, a Banpu subsidiary, until 2000. In 2000, he moved to Indonesia where he was named President of coal international trade and Senior Vice President of coal operations Indonesia before becoming the head of Banpu’s coal operations in Indonesia. He began his career as manager of Siam Kraft Paper Co., Ltd in 1977. He has held various other positions, including the position of lead technologist at Thai Oil Co., operations manager of PPG-Siam Silica Co.,Ltd. and general manager of Siam Unisole Co., Ltd between 1987 -1995. He obtained his B.Sc. in Chemical Engineering and Masters of Business Administration from Chulalangkorn University in 1982 and in 1997 respectively. In 1994 he obtained his Master in Industrial Engineering and Management from the Asian Institute of Technology.

Pongsak Thongampai Thai citizen, 51 years old Pongsak Thongampai joined the Company as Director of Business Development in 2002 and has substantial experience in the mining industry with over 25 years. Prior to joining the Company, he held the role of senior manager of government relations at Banpu Public Company Limited during 1992 - 2001. Since 2005 he has held the role of Deputy Head of coal operations in Indonesia. Hei began his career as a geologist at Chachue Sompong Mining Co., Ltd in 1982. Over his career, he has also held positions as Mine Manager of S.T.C. Mining Co., Ltd and assistant project manager of Visanu Cement Co., Ltd. He graduated from Faculty of Geology, Chulalongkorn University in 1982 and obtained his Masters of Business Administration from the Kasetsart University in 2002.

96



Edward Manurung Indonesian citizen, 46 years old Edward Manurung joined the Company in early 2007 and was further appointed as an Un-affiliated Director responsible for Finance. He began his career at Deutsche Bank in Jakarta. Prior to joining the Company, he held various roles with large multinational corporations, including Finance Manager of Dow Indonesia, Finance and Administrative Director of L’Oreal Indonesia from 2002 to 2003 and Finance Director of Makro Indonesia from 2003 to 2006. He obtained his undergraduate degree in accounting from the University of Indonesia in 1990 and is a graduate of the University of Florida where he obtained his Master of Business Administration in Finance in 1995.

Mahyudin Lubis Indonesian citizen, 60 Mahyudin Lubis joined the Company on 17 April 2009. Prior to his appointment as ITM Director, he was Commissioner of PT Tambang Batubara Bukit Asam between 2003 – 2008. His career in the Department of Mines began as the Head of the Mining Environment Sub-Directorate, Technical Mining Directorate (Kepala Sub Direktorat Lingkungan Pertambangan, Direktorat Teknik Pertambangan) between 1989- 1997, then become Director of Coal between 1997-1998. During 1998 – 2001 he was Head of the Department of Mines Office in Riau Province and in 2001 – 2006 he was Director of Coal and Mineral Business Department of Energy and Mineral Resources. He graduated in Mining Engineering from Bandung Institute of Technology in 1977

Hartono Widjaja Indonesian citizen, 48 Hartono Widjaja was appointed as Director in 2011. Prior to joining the group, he started his career in marketing in 1988 as Sales Associate at Metrodata (IBM). In 1989 he joined PT Kitadin as Assistant Marketing Manager, and in 1992 was promoted to Marketing Manager at PT Kitadin. In 1994, he served as Deputy General Manager for Marketing & Shipping and 1996 as Deputy Director for Marketing & Shipping. Subsequently, in 2002, he served as Vice President Regional Marketing and in 2007 as Senior Vice President for Marketing China & North Asia. Starting 2010 until the present, he has served as Senior Vice President for Marketing Japan, Europe, NZ and Marketing Compliance.


97

Audit Committee Profile Prof. Dr. Djisman S. Simandjuntak Indonesian Citizen Joined the Company as Independent Commissioner as of 27 July 2007 and became Chairman of the Audit Committee as of 10 April 2008. He obtained his Ph.D. in economics from the Faculty of Economics and Social Sciences, University of Cologne majoring in International Economics.

Davy Indra Kurniadi Indonesian Citizen Joined the Company as a member of the Audit Committee as of 1 April 2008. He holds a Bachelor of Science in Industrial Engineering from Northeastern University, Boston, Massachusetts and has extensive experience in the banking industry.

Myrnie Zachraini Tamin Indonesian Citizen Joined the Company as a member of the Audit Committee as of 7 April 2008. She obtained her Bachelor degree in accountancy from the University of Indonesia and a Magister degree in Commercial Law from Padjadjaran University. She holds a BAP and Public Accountant License and has more than 15 years experience as an auditor.

98



Directory PT Indo Tambangraya Megah Tbk

PT Bharinto Ekatama

Ventura Building 8th Floor

Ventura Building 8th Floor

Jl. R. A. Kartini No. 26 Jakarta 12430 Indonesia [T] +62 21 750 4390 [F] +62 21 750 4590, 750 4417, 7504696 [e-mail] [email protected] www.itmg.co.id

Jl. RA. Kartini No. 26, Cilandak Jakarta 12430 Indonesia [T] +62 21 750 4390 [F] +62 21 750 4590, 750 4417, 7504696

Balikpapan Branch Office Jl MT Haryono No. 15, RT. 75 Kelurahan Gunung Bahagia Kecamatan Balikpapan Selatan Balikpapan 76114 Kalimantan Timur [T] +62 542 878 710 (Hunting) [F] +62 542 877 698, 542 877702 PT Indominco Mandiri Ventura Building 8th Floor Jl. R.A. Kartini No.26, Cilandak Jakarta 12430 Indonesia [T] +62 21 750 4390 [F] +62 21 750 4590, 750 4417, 7504696 Site Office: PO Box 178 Bontang 75311 Km. 30, Bontang Office Site Kalimantan Timur Indonesia 75311 [T] +62 548 26235 [F] +62 548 26241 PT Trubaindo Coal Mining Ventura Building 8th Floor Jl. R.A. Kartini No.26, Cilandak Jakarta 12430 Indonesia [T] +62 21 750 4390 [F] +62 21 750 4590, 750 4417, 7504696 Adong Site Office: Camp Adong Kecamatan Muara Lawa Kabupaten Kutai Barat Kalimantan Timur 75775 Indonesia [T] +62 21 750 4390 ext 412 – 413 [F] +62 21 750 4390 ext 416 Bunyut Site Office: Camp Bunyut Kecamatan Melak Kabupaten Kutai Barat Kalimantan Timur 75765 Indonesia [T] +62 21 750 4390 ext 417 - 418 [F] +62 21 750 4390 ext 419

Site Office Kladi: Desa Muara Begai Kecamatan Muara Lawa Kabupaten Kutai Barat Kalimantan Timur 75775 [T] +62 21 750 4390 ext. 527 - 528 [F] +62 21 750 4390 ext. 527 PT Kitadin Ventura Building 8th Floor Jl. R.A. Kartini No.26, Cilandak Jakarta 12430 Indonesia [T] +62 21 750 4390 [F] +62 21 750 4590, 750 4417, 7504696 Embalut Site Office: Desa Embalut Kecamatan Tenggarong Seberang Kabupaten Kutai Kartanegara Kalimantan Timur 75572 Indonesia [T] +62 21 750 4390 ext. 408, 409, 411 [F] +62 21 750 4390 ext. 410 Tandung Mayang Site Office: PO Box 174 Bontang 75311 Jl. Poros Bontang Samarinda Km. 10 Bontang Kalimantan Timur 75311 Indonesia [ T] +62 21 750 4390 ext. 423 - 424 [F] +62 21 7504390 / ext 425

Capital Market Supporting Professionals Public Accountant KAP Tanudiredja, Wibisana dan Rekan (A member firm of PricewaterhouseCoopers) Jl. H. R. Rasuna Said Kav X-7 No. 6 Lantai 12, Jakarta 12940 [T] +62 21 521 2901 [STTD Number] 106/BL/STTD-AP/2010 [STTD Date] March 22, 2010 [Member of IAPI] Number 1444 valid until December 31, 2011 DNC Advocates at Work Permata Kuningan, Penthouse Floor Jl. Kuningan Mulia Kav. 9c Jakarta 12980, Indonesia [T] +62 21 8370 7777 [F] +62 21 8370 7771 www.dnc-advocates-at-work.com Notary Popie Savitri Martosuhardjo Pharmanto, S.H. Notaris and PPAT Jl. Hadiah IX Blok D XII / 1121 Kav. Polri, Jakarta 11460 [T] +62 21 5657851; 5683746 Share Administration Bureau PT Datindo Entrycom Puri Datindo – Wisma Sudirman Jl. Jendral Sudirman Kav. 34 Jakarta 10220 [T] +62 21 570 9009 [STTD Number] 1548/KMK.013/1990 [STTD Date] April 19, 1991

PT Jorong Barutama Greston Ventura Building 8th Floor Jl. R.A. Kartini No.26, Cilandak Jakarta 12430 Indonesia Telp. +62 21 750 4390 Fax. +62 21 750 4590, 750 4417, 7504696 Site Office: PO Box 141 Pelaihari 70882 Jl. A. Yani Km. 104 Desa Swarangan RT. 07 No. 286 Kecamatan Jorong Kabupaten Tanah Laut Kalimantan Selatan 70882 Indonesia [T] +62 21 750 4390 ext 400 – 402 [F] +62 21 750 4390 ext 403


99

Glossary

100

AGMS

Annual General Meeting of Shareholders

Bapepam-LK

Capital Market and Financial Institution Supervisory Board

BCL

Bontang Coal Laboratory

BCM


BoC

Board of Commissioners

BoCT

Bontang Coal Terminal

BoD

Board of Directors

CC

Corporate Communications

CBU

Continuous Barge Unloader

CCC

Community Consultative Committee

CCoW

Coal Contract of Work

CDO

Community Development Officer

CMS


CMT

Crisis Management Team

COGS

Cost of Goods Sold

COSO

Committee of Sponsoring Organisations

CPA

Certified Public Accountant

CRM

Customer Relationship Management

CSR

Corporate Social Responsibility

DSC

Deferred Stripping Costs

EBITDA

Earnings before interest, tax, depreciation and amortization

EIA

Environmental Impact Analysis

ERM

Enterprise Risk Management

ERP

Enterprise Resource Planning

ERT

Emergency Response Team

GCG

Good Corporate Governance

GCGNCC

Good Corporate Governance, Nomination and Compensation Committee

GET

Geologist and Engineer Training

GSM

General Shareholder Meeting

HKSN

National Solidarity Day


HR

Human Resources

IFR

Injury Frequency Rate

IMT

Incident Management Team

ISO

International Organization for Standarization

ISR

Injury Severity Rate

IT


ITM


HR

Human Resources

HRIS

HR Information System

KP

Mining Rights

KPI

Key Performance Indicators

LTI

Lost Time Due to Injury

OHSAS

Occupational Health and Safety Advisory Services

mt

Million tons

NEX

Newcastle Export Index

PAMA

PT Pamapersada Nusantara

PAUD

non-formal early childhood centers

PDCA

Plan Do Check Action

PNPM

Program Nasional Pemberdayaan Masyarakat

QSE

Quality, Safety and Environment

RKAB

Annual Budget and Work Plan

RKL

Environment Management Plans

RPL

Environment Monitoring Plans

SFAS

Statements of Financial Accounting Standards

TPM

Total Productive Maintenance

Gross Profit Margin = Gross Profit / Net Sales Net Profit Margin = Net Income / Net Sales EBITDA = Operating Profit + Depreciation + Amortization Networking Capital = Current Assets - Current Liabilities Current Ratio = Current Assets / Current Liabilities


101

This page is intentionally left blank

Financial Statements

PT INDO TAMBANGRAYA MEGAH TBK. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 AND 2010

F inancial S tatements



F inancial S tatements



F i n a n c i a l S tat e m e n t s

PT INDO TAMBANGRAYA MEGAH TBK. DAN ANAK PERUSAHAAN/AND SUBSIDIARIES Lampiran 1/1 Schedule LAPORAN POSISI KEUANGAN KONSOLIDASIAN 31 DESEMBER 2011 DAN 2010 (Dinyatakan dalam ribuan Dolar AS, kecuali nilai nominal dan data saham) Catatan/ Notes

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER 2011 AND 2010 (Expressed in thousand US Dollars, except for par value and share data) 2011

ASET LANCAR Kas dan setara kas 2a,3 Piutang usaha - Pihak ketiga 2d,4 - Pihak-pihak berelasi 2d,2y,4,22 Piutang lain-lain - pihak ketiga 2d Piutang derivatif 2o,2p,21 Persediaan, setelah dikurangi penyisihan untuk persediaan usang sejumlah US$2.884 (2010: US$1.672) 2e,5 Pajak dibayar di muka - bagian lancar 2l,6a Biaya pengupasan tanah yang ditangguhkan - bagian lancar 2m,8 Aset lancar lain-lain Jumlah aset lancar ASET TIDAK LANCAR Piutang lain-lain pihak-pihak berelasi 2d,2y,22 Aset tetap, setelah dikurangi akumulasi penyusutan sejumlah US$332.231 (2010: US$282.628) dan penyisihan penurunan nilai sebesar US$176 (2010: US$176) 2f,2g,2i,7 Biaya pengupasan tanah yang ditangguhkan dikurangi bagian lancar 2i,2m,8 Biaya eksplorasi dan pengembangan yang ditangguhkan, setelah dikurangi akumulasi amortisasi sejumlah US$61.826 (2010: US$52.007) 2h,2i,9 Properti pertambangan, setelah dikurangi akumulasi amortisasi sejumlah US$6.993 (2010: US$6.266) 2i,2j,10 Pajak dibayar dimuka dikurangi bagian lancar 2l,6a Aset pajak tangguhan, bersih 2l,6d Aset tidak lancar lain-lain Jumlah aset tidak lancar JUMLAH ASET

Catatan atas laporan keuangan merupakan bagian yang tak terpisahkan dari laporan keuangan konsolidasian ini

2010

612,416

294,569

202,256 8,942 18,375 26,448

117,919 3,143 12,151 18,225

106,971 9,332

70,533 70,007

67,382 14,305

21,606

CURRENT ASSETS Cash and cash equivalents Trade receivables Third parties Related parties Other receivables - third parties Derivative receivables Inventories, net of provision for obsolete inventories of US$2,884 (2010: US$1,672) Prepaid taxes - current portion Deferred stripping costs - current portion Other current assets

1,066,427

608,153

Total current assets

436

728

344,357

348,290

NON-CURRENT ASSETS Other receivables related parties Fixed assets, net of accumulated depreciation of US$332,231 (2010: US$282,628) and net of a provision for impairment of US$176 (2010: US$176)

18,772

50,737

Deferred stripping costs - net of current portion

53,931

42,975

23,356

24,083

54,214 15,544 1,437

12,493 2,247

Deferred exploration and development expenditures, net of accumulated amortisation of US$61,826 (2010: US$52,007) Mining properties, net of accumulated amortisation of US$6,993 (2010: US$6,266) Prepaid taxes - net of current portion Deferred tax assets, net Other non-current assets

512,047

481,553

Total non-current assets

1,578,474

1,089,706

TOTAL ASSETS

The accompanying notes form an integral part of these consolidated financial statements Annual Report 2011 PT Indo Tambangraya Megah Tbk

PT INDO TAMBANGRAYA MEGAH TBK. DAN ANAK PERUSAHAAN/AND SUBSIDIARIES Lampiran 1/2 Schedule LAPORAN POSISI KEUANGAN KONSOLIDASIAN 31 DESEMBER 2011 DAN 2010 (Dinyatakan dalam ribuan Dolar AS, kecuali nilai nominal dan data saham)

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER 2011 AND 2010 (Expressed in thousand US Dollars, except for par value and share data)

Catatan/ Notes LIABILITAS JANGKA PENDEK Hutang usaha - pihak ketiga Hutang pajak Beban yang masih harus dibayar Liabilitas lancar lain-lain - pihak ketiga Liabilitas derivatif

2011

2010

2r,11 2l,6b 2k,12

146,419 109,312 188,576

94,783 13,763 150,130

2o,21

4,992 1,449

9,291 63,560

CURRENT LIABILITIES Trade payables - third parties Taxes payable Accrued expenses Other current liabilities - third parties Derivative liabilities

450,748

331,527

Total current liabilities

Jumlah liabilitas jangka pendek LIABILITAS JANGKA PANJANG Liabilitas lain-lain pihak-pihak berelasi 2r,2y,22 Liabilitas pajak tangguhan, bersih 2l,6e Penyisihan untuk rehabilitasi tambang 2n Penyisihan untuk pembongkaran, pemindahan dan restorasi 2n Penyisihan imbalan karyawan 2q Jumlah liabilitas jangka panjang Jumlah liabilitas EKUITAS YANG DAPAT DIATRIBUSIKAN KEPADA PEMILIK ENTITAS INDUK Modal saham biasa: 2s Modal dasar 3.000.000.000 lembar; ditempatkan dan disetor penuh 1.129.925.000 lembar (2010: 1.129.925.000 lembar) dengan nilai nominal Rp500 13 Premi saham 14 Cadangan nilai wajar lindung nilai arus kas 2o,21a

4,120 8,102 14,681

2,837 6,021 11,210

6,595 13,424

5,872 11,215

NON-CURRENT LIABILITIES Other liabilities - related parties Deferred tax liabilities, net Provision for mine rehabilitation Provision for decommissioning, demobilisation and restoration Provision for employee benefits

46,922

37,155

Total non-current liabilities

497,670

368,682

Total liabilities

63,892 344,198

EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT Share capital: Authorised 3,000,000,000 shares; issued and fully paid 1,129,925,000 shares (2010: 1,129,925,000 shares) at par value of Rp500 Share premium

63,892 344,198 5,463

(14,614)

2a

(15,170)

(15,170)

15

5,000 677,421

3,000 339,718

Cash flow hedging reserve Difference in value from restructuring transactions of entities under common control Retained earnings: Appropriated Unappropriated -

Jumlah ekuitas

1,080,804

721,024

Total equity

JUMLAH LIABILITAS DAN EKUITAS

1,578,474

Selisih nilai transaksi restrukturisasi entitas sepengendali Laba ditahan: - Dicadangkan - Belum dicadangkan

Catatan atas laporan keuangan merupakan bagian yang tak terpisahkan dari laporan keuangan konsolidasian ini Annual Report 2011 PT Indo Tambangraya Megah Tbk

1,089,706 TOTAL LIABILITIES AND EQUITY

The accompanying notes form an integral part of these consolidated financial statements


PT INDO TAMBANGRAYA MEGAH TBK. DAN ANAK PERUSAHAAN/AND SUBSIDIARIES Lampiran 2/1 Schedule LAPORAN LABA RUGI KOMPREHENSIF KONSOLIDASIAN UNTUK TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2011 DAN 2010 (Dinyatakan dalam ribuan Dolar AS, kecuali laba per saham dasar yang dapat diatribusikan kepada pemilik Perusahaan) Catatan/ Notes

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED 31 DECEMBER 2011 AND 2010 (Expressed in thousand US Dollars, except for basic earnings per share for net income attributable to the owners of the Company)

2011

2010

Penjualan bersih

2k,17

2,381,875

1,644,650

Harga pokok penjualan

2k,18

(1,489,807)

(1,126,597)

Laba kotor

892,068

518,053

Net sales Cost of goods sold Gross profit

Beban operasi Beban penjualan

2k,19

(99,374)

(75,844)

Beban umum dan administrasi

2k,20

(85,779)

(79,301)

Operating expenses Selling expenses General and administration expenses

(185,153)

(155,145)

Total operating expenses

706,915

362,908

Jumlah beban operasi Laba usaha Pendapatan/(beban) lain-lain Pendapatan keuangan Biaya keuangan Keuntungan selisih kurs, bersih Keuntungan/(kerugian) transaksi derivatif, bersih Kerugian atas pelepasan aset tetap Penghapusan piutang tak tertagih Penghapusan biaya eksplorasi dan pengembangan yang ditangguhkan Beban lain-lain, bersih

2c

6,606 (1,922) 639

5,421 (3,242) 5,131

2o 2f,7

34,304 (879)

(54,091) (4,488)

Laba sebelum pajak penghasilan Beban pajak penghasilan

2l,6c

Laba bersih yang dapat diatribusikan kepada pemilik Perusahaan


-

(2,389)

-

(20,702)

(15,725)

(11,194)

23,023

(85,554)

729,938

277,354

(183,812)

(73,203)

546,126

204,151

Operating income Other income/(expenses) Finance income Finance costs Foreign exchange gain, net Gain/(loss) on derivative transactions, net Loss on disposal of fixed assets Write-off of uncollectible trade receivables Write-off of deferred exploration and development expenditures Other expenses, net

Profit before income tax Income tax expense Net income attributable to the owners of the Company


PT INDO TAMBANGRAYA MEGAH TBK. DAN ANAK PERUSAHAAN/AND SUBSIDIARIES Lampiran 2/2 Schedule LAPORAN LABA RUGI KOMPREHENSIF KONSOLIDASIAN UNTUK TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2011 DAN 2010 (Dinyatakan dalam ribuan Dolar AS, kecuali laba per saham dasar yang dapat diatribusikan kepada pemilik Perusahaan) Catatan/ Notes

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED 31 DECEMBER 2011 AND 2010 (Expressed in thousand US Dollars, except for basic earnings per share for net income attributable to the owners of the Company)

2011

2010

Pendapatan komprehensif lainnya Perubahan nilai wajar atas cadangan nilai wajar lindung nilai arus kas

Other comprehensive income

2o,21a

Jumlah pendapatan komprehensif yang dapat diatribusikan kepada pemilik Perusahaan Laba bersih per saham dasar yang dapat diatribusikan kepada pemilik Perusahaan

5,178

551,304

2u,23


0.48

(15,030)

Change in fair value of cash flow hedging reserve

189,121

Total comprehensive income attributable to the owners of the Company

0.18

Basic earnings per share for net income attributable to the owners of the Company



PT INDO TAMBANGRAYA MEGAH TBK. DAN ANAK PERUSAHAAN/AND SUBSIDIARIES Lampiran 3 Schedule LAPORAN PERUBAHAN EKUITAS KONSOLIDASIAN UNTUK TAHUN-TAHUN YANG BERAKHIR 31 DESEMBER 2011 DAN 2010 (Dinyatakan dalam ribuan Dolar AS)

Catatan/ Notes Saldo 1 Januari 2010 Laba komprehensif tahun berjalan Pencadangan laba ditahan Cadangan nilai wajar lindung nilai arus kas Dividen dideklarasikan

2o,21a

Pencadangan laba ditahan Cadangan nilai wajar lindung nilai arus kas Dividen dideklarasikan Saldo 31 Desember 2011

Selisih nilai transaksi restrukturisasi entitas sepengendali/ Cadangan Difference nilai wajar in value from lindung restructuring nilai transactions Laba ditahan/ arus kas/ of entities Retained earnings Cash flow under Belum hedging common Dicadangkan/ dicadangkan/ reserve control Appropriated Unappropriated

Premi saham/ Share premium

63,892

-

344,198

-

-

(15,030)

(15,170)

-

1,013

-

15

-

-

-

-

1,987

2o,21a

-

-

416

-

-

2t,16

-

-

-

-

-

Saldo 31 Desember 2010 Laba komprehensif tahun berjalan

Modal saham biasa/ Share capital

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED 31 DECEMBER 2011 AND 2010 (Expressed in thousand US Dollars)

63,892

2o,21a

-

344,198

-

(14,614)

5,178

(15,170)

-

3,000

-

15

-

-

-

-

2,000

2o, 21a

-

-

14,899

-

-

2t,16

-

-

-

-

-

63,892

344,198

5,463


(15,170)

5,000

393,553

204,151

(1,987) (255,999)

339,718

546,126

(2,000) (206,423)

677,421

Jumlah/ Total 787,486

Balance as at 1 January 2010

189,121

Comprehensive income for the year

-

Appropriation of retained earnings

416

Cash flow hedging reserve

(255,999) Dividends declared

721,024

Balance as at 31 December 2010

551,304

Comprehensive income for the year

-

Appropriation of retained earnings

14,899

Cash flow hedging reserve

(206,423) Dividends declared

1,080,804

Balance as at 31 December 2011


PT INDO TAMBANGRAYA MEGAH TBK. DAN ANAK PERUSAHAAN/AND SUBSIDIARIES Lampiran 4 Schedule LAPORAN ARUS KAS KONSOLIDASIAN UNTUK TAHUN-TAHUN YANG BERAKHIR PADA 31 DESEMBER 2011 DAN 2010 (Dinyatakan dalam ribuan Dolar AS)

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED 31 DECEMBER 2011 AND 2010 (Expressed in thousand US Dollars)

2010

2011 Arus kas dari aktivitas operasi Penerimaan dari pelanggan Pembayaran kepada pemasok Pembayaran kepada direktur dan karyawan Penerimaan pendapatan keuangan Pembayaran biaya keuangan Pembayaran pajak penghasilan badan Pembayaran royalti/iuran eksploitasi Pembayaran lain-lain Kas bersih yang diperoleh dari aktivitas operasi Arus kas dari aktivitas investasi Pembelian aset tetap Hasil penjualan aset tetap Biaya eksplorasi dan pengembangan yang ditangguhkan, setelah dikurangi kapitalisasi beban penyusutan dan dampak akresi Kas bersih yang digunakan untuk aktivitas investasi Arus kas dari aktivitas pendanaan Penerimaan dari pinjaman bank Pembayaran pinjaman bank Pembayaran dividen kas Pembayaran pokok sewa pembiayaan

Cash flows from operating activities Receipts from customers Payments to suppliers Payments to directors and employees Receipts of finance income Payments of finance costs Payments of corporate income tax Payments of royalties/exploitation fee Other payments

2,291,739 (1,242,091)

1,672,384 (954,545)

(59,600) 6,606 (1,922) (92,909) (287,407) (22,804)

(44,989) 5,421 (4,090) (162,126) (244,857) (27,707)

591,612

239,491

(48,813) 1,857

(53,076) 332

(20,386)

(9,677)

Cash flows from investing activities Acquisition of fixed assets Proceeds from sale of fixed assets Deferred exploration and development expenditures, net of capitalisation of depreciation expense and accretion impact

(67,342)

(62,421)

Net cash used in investing activities

(206,423)

50,000 (105,050) (255,999)

Net cash provided by operating activities

(32)

Cash flows from financing activities Proceeds from bank loans Repayment of bank loans Cash dividends paid Principal repayments of finance leases

(206,423)

(311,081)

Net cash used in financing activities

Kenaikan/(penurunan) bersih kas dan setara kas

317,847

(134,011)

Net increase/(decrease) in cash and cash equivalents

Kas dan setara kas pada awal tahun

294,569

428,580

Cash and cash equivalents at the beginning of the year

Kas dan setara kas pada akhir tahun (Catatan 3)

612,416

294,569

Cash and cash equivalents at the end of the year (Note 3)

4,397

1,030 46

Kapitalisasi penyisihan untuk pembongkaran, pemindahan, dan restorasi

658

1,515

Kapitalisasi dampak akresi penyisihan untuk pembongkaran, pemindahan, dan restorasi

6

-

Kas bersih yang digunakan untuk aktivitas pendanaan

Aktivitas non-kas Kapitalisasi biaya pinjaman Kapitalisasi biaya penyusutan

-


Non-cash activities Capitalisation of borrowing costs Capitalisation of depreciation expense Capitalisation of provision for decommissioning, demobilisation and restoration Capitalisation of accretion impact for decommissioning, demobilisation and restoration



PT INDO TAMBANGRAYA MEGAH TBK. DAN ANAK PERUSAHAAN/AND SUBSIDIARIES Lampiran 5/1 Schedule CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2011 dan 2010 (Dinyatakan dalam ribuan Dolar AS, kecuali dinyatakan lain) 1.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 AND 2010 (Expressed in thousand US Dollars, unless otherwise stated)

INFORMASI UMUM

1.

GENERAL INFORMATION

PT Indo Tambangraya Megah Tbk. (“Perusahaan”) didirikan dengan Akta Notaris Benny Kristianto, S.H., No. 13 tertanggal 2 September 1987 yang telah disetujui oleh Menteri Kehakiman Republik Indonesia dalam Surat Keputusan No. C2-640.HT.01.01.TH‟89 tertanggal 20 Januari 1989. Anggaran Dasar Perusahaan telah mengalami beberapa kali perubahan. Perubahan Anggaran Dasar Perusahaan terakhir dilakukan berdasarkan Akta Notaris Popie Savitri Martosuhardjo Pharmanto, S.H., notaris di Jakarta, No. 30 tertanggal 11 Mei 2009 dan No. 24 tertanggal 14 Agustus 2009 terkait dengan penyesuaian Anggaran Dasar Perusahaan dengan Peraturan IX.J.1 lampiran Keputusan Ketua BAPEPAM-LK No. 179/BL/2008 tanggal 14 Mei 2008. Perubahan tersebut telah mendapatkan persetujuan dari Menteri Hukum dan Hak Asasi Manusia Republik Indonesia dalam Surat Keputusan No. AHU-41810.AH.01.02.Tahun 2009 tertanggal 27 Agustus 2009.

PT Indo Tambangraya Megah Tbk. (the “Company”) was established based on Notarial Deed of Benny Kristianto, S.H., No. 13 dated 2 September 1987 which was approved by the Minister of Justice of the Republic of Indonesia in Decree No. C2-640.HT.01.01.TH‟89 dated 20 January 1989. The Company‟s Articles of Association have been amended several times. The latest amendment made to the Company‟s Articles of Association was based on Notarial Deed No. 30, dated 11 May 2009 and Notarial Deed No. 24 dated 14 August 2009, of Popie Savitri Martosuhardjo Pharmanto, S.H., notary in Jakarta, relating to amendment of the Company‟s Articles of Association to conform with the requirements of Regulation IX.J.1, Supplement to Decree of Capital Market and Financial Institutions Supervision Agency No.179/BL/2008 dated 14 May 2008. That amendment has been approved by the Minister of Law and Human Rights of the Republic of Indonesia in Decree No. AHU-41810.AH.01.02.Tahun 2009 dated 27 August 2009.

Pada tanggal 18 Desember 2007, Perusahaan melakukan Penawaran Umum Perdana sebanyak 225.985.000 lembar saham yang merupakan 20% dari 1.129.925.000 lembar saham yang ditempatkan dan disetor penuh. Penawaran kepada masyarakat tersebut dicatat di Bursa Efek Indonesia pada tanggal 18 Desember 2007.

On 18 December 2007, the Company conducted an Initial Public Offering (“IPO”) of 225,985,000 shares or 20% of 1,129,925,000 shares issued and fully paid. The shares offered to the public in the IPO were listed on the Indonesia Stock Exchange on 18 December 2007.

Perusahaan memiliki kepemilikan langsung dan tidak langsung pada anak perusahaan berikut ini:

The Company has direct and indirect ownership in the following subsidiaries:

Anak perusahaan/ Subsidiaries

Aktivitas bisnis/ Business activity

Lokasi/ Location

Mulai beroperasi komersial/ commencement of commercial operations

Persentase kepemilikan/ Percentage of ownership 31/12/2011

31/12/2010

Jumlah aset sebelum eliminasi/ Total assets before elimination 31/12/2011

31/12/2010

PT Indominco Mandiri (“IMM”)

Penambangan batubara/ Coal mining

Kalimantan Timur/East Kalimantan

Maret/March 1997

100.00

100.00

605,049

435,673

PT Trubaindo Coal Mining (“TCM”)



Juni/June 2005

100.00

100.00

281,145

212,508

PT Jorong Barutama Greston (“JBG”)


Kalimantan Selatan/ South Kalimantan

Oktober/ October 1998

100.00

100.00

65,902

65,259

PT Kitadin (“KTD”)

Penambangan batubara, jasa kontraktor yang berkaitan dengan penambangan batubara dan perdagangan batubara/ Coal mining, contractor services relating to coal mining and coal trading


Juli/July 1983

99.99

99.99

198,524

136,080



INFORMASI UMUM (lanjutan)

Anak perusahaan/ Subsidiaries PT Bharinto Ekatama (“Bharinto”)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 AND 2010 (Expressed in thousand US Dollars, unless otherwise stated) 1.

Aktivitas bisnis/ Business activity Eksplorasi tambang batubara/ Coal exploration

Lokasi/ Location Kalimantan Timur dan Tengah/ East and Central Kalimantan

GENERAL INFORMATION (continued)

Mulai beroperasi komersial/ commencement of commercial operations Belum mulai produksi/ Production has not been started

Persentase kepemilikan/ Percentage of ownership 31/12/2011

31/12/2010

100.00

100.00

Jumlah aset sebelum eliminasi/ Total assets before elimination 31/12/2011 37,897

31/12/2010 24,011

Bidang usaha utama Perusahaan adalah bidang pertambangan dengan melakukan investasi pada anak-anak perusahaan dan jasa pemasaran untuk pihak-pihak berelasi. Anak-anak perusahaan yang dimilikinya bergerak dalam industri pertambangan batubara. Kantor pusat Perusahaan berlokasi di Jakarta. Dalam laporan keuangan konsolidasian ini, Perusahaan dan anak-anak perusahaan secara bersama-sama disebut sebagai “Grup”.

The main activities of the Company are mining, by investing in subsidiaries, and marketing services to related companies. Its subsidiaries are involved in the coal mining industry. The Company‟s office is located in Jakarta. In these consolidated financial statements, the Company and its subsidiaries are collectively referred to as the “Group”.

Entitas pengendali utama Perusahaan adalah Banpu Public Company Limited, sebuah perusahaan yang didirikan di Kerajaan Thailand.

The ultimate parent entity is Banpu Public Company Limited, a company incorporated in the Kingdom of Thailand.

Susunan Dewan Direksi dan Dewan Komisaris Perusahaan pada tanggal 31 Desember 2011 dan 2010 adalah sebagai berikut:

The composition of the Company‟s Board of Directors and Board of Commissioners as at 31 December 2011 and 2010 were as follows:

Direktur Utama: Direktur: Direktur tidak terafiliasi: Komisaris Utama: Komisaris:

2011

2010

Mr. Somyot Ruchirawat Mr. Pongsak Thongampai Mr. Hartono Widjaja^ Mr. Mahyudin Lubis Mr. Edward Manurung, S.E., MBA

Mr. Somyot Ruchirawat Mr. Pongsak Thongampai Mr. Aphimuk Taifayongvichit^ Mr. Mahyudin Lubis Mr. Edward Manurung, S.E., MBA

Mr. Ibrahim Yusuf# Ms.Somruedee Chaimongkol Mr. Sathidpong Wattananuchit^ Mr. Ir. Lukmanul Hakim, MM Mr. Rudijanto Boentoro Prof. Dr. Djisman S. Simandjuntak#

Mr. Ibrahim Yusuf# Ms.Somruedee Chaimongkol Mr. Rawi Corsiri^ Mr. Ir. Lukmanul Hakim, MM Mr. Rudijanto Boentoro Prof. Dr. Djisman S. Simandjuntak#

President Director: Directors: Non-affiliated Director: President Commissioner: Commissioners:

^ Diangkat atau digantikan berdasarkan Keputusan Rapat Umum Pemegang Saham Tahunan pada tanggal 28 Maret 2011.

^ Appointed or replaced based on decision of the Annual General Meeting of Shareholders held on 28 March 2011.

#

#

Komisaris Independen


Independent Commissioner



INFORMASI UMUM (lanjutan)


Susunan Komite Audit Perusahaan pada tanggal laporan keuangan konsolidasian ini adalah sebagai berikut: Ketua: Anggota:

GENERAL INFORMATION (continued) The composition of the Company‟s Audit Committee as at the date of these consolidated financial statements was as follows:

Prof. Dr. Djisman S. Simandjuntak Mr. Davy Indra Kurniadi Ms. Myrnie Zachraini Tamin Mr. Erwin Sundoro

Sekretaris:

Chairman: Members: Secretary:

Cadangan Batubara

Coal Reserves

Berdasarkan laporan terkini cadangan terbukti yang diterbitkan oleh SRK Consulting (UK) pada bulan Februari 2011 untuk cadangan terbukti per 31 Desember 2010, dan setelah dikurangi penjualan untuk periode berjalan, jumlah cadangan terbukti tanggal 31 Desember 2011 adalah sebagai berikut:

Based on a recent survey report by SRK Consulting (UK) issued in February 2011 for proven reserves as at 31 December 2010, and after deducting sales for the intervening period, the proven reserves as at 31 December 2011 were as follows:

Lokasi/ Location KTD Tandung Mayang KTD Embalut

IMM

TCM JBG Bharinto 1) 2) #)

Tanggal izin penambangan/ Date of mining permit Izin Usaha Pertambangan Operasi Produksi/ Production Operation Mining Business Licence - 21 Mei/May 2010 Izin Usaha Pertambangan Operasi Produksi/ Production Operation Mining Business Licence - 24 Januari/January 2011 Perjanjian Karya Pengusahaan Pertambangan Batubara (“PKP2B”)/Coal Cooperation Agreement (“CCA”) - 5 Oktober/October 1990 PKP2B/CCA - 15 Agustus/August 1994 PKP2B/CCA - 15 Agustus/August 1994 PKP2B/CCA - 20 November/November 1997

Jumlah cadangan terbukti per 31 Desember 2010/Total proven reserves as of 31 December 20101)

Tambahan cadangan terbukti/ Addition of proven reserves1)

Jumlah penjualan selama 2011/Sales in 20111)

Jumlah cadangan terbukti per 31 Desember 2011/Total proven reserves as of 31 December 20111)

28 Mei/May 2018

9.70 #)

-

(0.45)

9.25

25 Februari/February 2013

6.90 #)

-

(1.18)

5.72

Tanggal berakhir/Expiry date2)

5 Oktober/October 2030

135.60

9.00#)

(14.85)

129.75

27 Februari/February 2035

67.10

-

(6.81)

60.29

-

(1.39)

5.81

-

-

41.30

7.20 #)

3 Mei/May 2035

41.30

29 Juni/June 2041

Dalam jutaan MT, tidak diaudit Tanggal izin terakhir jika terdapat lebih dari satu izin

1)

Berdasarkan survei internal

#)

2)

In million MT, unaudited Expiry date of latest permit if more than one permit Based on internal survey



IKHTISAR KEBIJAKAN AKUNTANSI PENTING


SUMMARY POLICIES

OF

SIGNIFICANT

ACCOUNTING

Laporan keuangan konsolidasian Grup telah disusun dan diselesaikan oleh Dewan Direksi dan diotorisasi untuk diterbitkan pada tanggal 22 Februari 2012.

The Group‟s consolidated financial statements were prepared and finalised by the Board of Directors and were authorised for the issuance on 22 February 2012.

Berikut ini adalah kebijakan akuntansi yang diterapkan oleh Grup dalam penyusunan laporan keuangan konsolidasiannya, yang sesuai dengan Standar Akuntansi Keuangan di Indonesia. Laporan keuangan konsolidasian ini juga disusun berdasarkan Peraturan yang ditetapkan oleh Badan Pengawas Pasar Modal dan Lembaga Keuangan (“BAPEPAM & LK”) No. VIII.G.7 mengenai Pedoman Penyajian Laporan Keuangan, Surat Edaran BAPEPAM & LK No. SE-02/BL/2008 tertanggal 31 Januari 2008 mengenai Pedoman Penyajian dan Pengungkapan Laporan Keuangan Emiten atau Perusahaan Publik Industri Pertambangan Umum dan Keputusan No. KEP-554/BL/2010 tentang perubahan atas Peraturan No. VIII.G.7.

Presented below are the significant accounting policies adopted in preparing the consolidated financial statements of the Group, which are in conformity with Financial Accounting Standards in Indonesia. The consolidated financial statements have also been prepared in conformity with Regulation of the Capital Market and Financial Institutions Supervisory Board (“BAPEPAM & LK”) No. VIII.G.7 for the Guidance on Financial Statements Presentation, Circular Letter of BAPEPAM & LK No. SE-02/BL/2008 dated 31 January 2008 for Preparation and Disclosure Guidance for Financial Statements of an Issuer or Public Company in the General Mining Industry and Decree No. KEP554/BL/2010 regarding amendment to Regulation No. VIII.G.7.

a.

a.

Dasar penyusunan konsolidasian

laporan

keuangan

Basis of preparation financial statements

of

the

consolidated

Laporan keuangan konsolidasian telah disusun dengan dasar harga perolehan, kecuali instrumen keuangan, yang dicatat sebesar nilai wajarnya. Perusahaan mencatat pembukuannya dalam Dolar Amerika Serikat (“Dolar AS” atau “US$”) yang telah disetujui oleh Menteri Keuangan melalui Surat Keputusan No. 548/PJ.42/2002. Mata uang fungsional Grup adalah Dolar AS.

The consolidated financial statements have been prepared on the basis of historical costs, except for financial instruments, which are carried at fair value. The Company maintains its books in United States Dollars (“US Dollars” or “US$”) which has been approved by the Ministry of Finance through Decree No. 548/PJ.42/2002. The US Dollar is the functional currency of the Group.

Laporan arus kas konsolidasian disusun menggunakan metode langsung dengan mengklasifikasikan arus kas berdasarkan aktivitas operasi, investasi, dan pendanaan. Untuk tujuan penyusunan laporan arus kas konsolidasian, kas dan setara kas mencakup kas, kas di bank, dan deposito dengan jangka waktu tiga bulan atau kurang, setelah dikurangi cerukan.

The consolidated statements of cash flows are prepared based on the direct method by classifying cash flows on the basis of operating, investing and financing activities. For the purpose of the consolidated statements of cash flows, cash and cash equivalents includes cash on hand, cash in banks and deposits with a maturity of three months or less, net of overdrafts.




IKHTISAR (lanjutan) a.

KEBIJAKAN

Dasar penyusunan konsolidasian (lanjutan)

AKUNTANSI

PENTING

laporan

keuangan


SUMMARY OF SIGNIFICANT POLICIES (continued) a.

Basis of preparation of the financial statements (continued)

ACCOUNTING consolidated

Kas merupakan alat pembayaran yang siap dan bebas dipergunakan untuk membiayai kegiatan umum perusahaan.

Cash represents available and eligible payment instruments to finance the Company's business.

Setara kas adalah investasi yang sifatnya sangat likuid, berjangka pendek, dan dengan cepat dapat dijadikan kas dalam jumlah yang telah diketahui tanpa menghadapi risiko perubahan nilai yang signifikan. Instrumen yang dapat diklasifikasikan sebagai setara kas antara lain adalah:

Cash equivalents represent very liquid investments, short term and quickly convertible to cash at a predetermined amount without any risk of significant value change. Instruments which can be classified as cash equivalents are as follows:

(i)

(i) Time deposits due within three months or less, starting from the placement date and are not pledged as collateral; and

Deposito berjangka yang akan jatuh tempo dalam waktu tiga bulan atau kurang dari penempatannya serta tidak tanggal dijaminkan; dan (ii) Instrumen pasar uang yang diperoleh dan dapat dicairkan dalam jangka waktu tidak lebih dari tiga bulan.

(ii) Money market instruments purchased and saleable within three months.

Kas dan setara kas yang telah ditentukan penggunaannya atau yang tidak dapat digunakan secara bebas tidak tergolong dalam kas dan setara kas.

Cash and cash equivalents which have been restricted for certain purpose or which can not be used freely are not defined as cash and cash equivalents.

Angka dalam laporan keuangan konsolidasian disajikan dalam ribuan Dolar AS kecuali dinyatakan lain.

Figures in the consolidated financial statements are rounded to and stated in thousand US Dollars, unless otherwise stated.

Transaksi restrukturisasi entitas sepengendali dicatat dengan menggunakan metode penyatuan kepemilikan (“pooling of interest”). Selisih antara harga pengalihan dengan nilai buku dicatat dalam akun ”Selisih Nilai Transaksi Restrukturisasi Entitas Sepengendali” dan disajikan pada bagian ekuitas dalam laporan posisi keuangan konsolidasian.

Restructuring transactions for entities under common control are accounted for using the pooling of interests method. The difference between the transfer price and the book value is recorded under the account “Difference in Value from Restructuring Transactions of Entities under Common Control” and presented under the equity section of the consolidated statements of financial position.

Perubahan pada pernyataan standar akuntansi keuangan dan interpretasi pernyataan standar akuntansi keuangan

Changes to the statement of financial accounting standards and interpretations of statement of financial accounting standards

Pada tanggal 1 Januari 2011, Grup menerapkan pernyataan standar akuntansi keuangan (“PSAK”) dan interpretasi standar akuntansi keuangan (“ISAK”) baru dan revisi yang wajib berlaku mulai dari tanggal tersebut, antara lain:

On 1 January 2011, the Group adopted new and revised statements of financial accounting standards (“SFAS”) and interpretations of statement of financial accounting standards (“ISFAS”) that are mandatory for application from that date, among others:




KEBIJAKAN

Dasar penyusunan konsolidasian (lanjutan) -

AKUNTANSI

PENTING

laporan

keuangan

PSAK No. 1: Penyajian Laporan Keuangan




consolidated

-

of

-

-

PSAK No. 5: Segmen Operasi

SFAS No. Statements

1:

Presentation

Financial

Entities can choose whether to present one performance statement (the statement of comprehensive income) or two statements (the income statement and statement of comprehensive income). The Group has elected to present one statement. The consolidated financial statements have been prepared under the revised disclosure requirements.

Entitas dapat memilih untuk menyajikan satu laporan kinerja (laporan laba rugi komprehensif) atau dua laporan (laporan laba rugi dan laporan laba rugi komprehensif). Grup memilih untuk menyajikan dalam bentuk satu laporan. Laporan keuangan konsolidasian telah disusun menggunakan pengungkapan yang disyaratkan. -

ACCOUNTING

SFAS No. 5: Operating Segments

Standar mengharuskan entitas untuk mengungkapkan informasi yang memungkinkan pengguna laporan keuangan untuk mengevaluasi sifat dan dampak keuangan dari aktivitas bisnis. Standar juga menyempurnakan definisi segmen operasi dan prosedur yang digunakan untuk mengidentifikasi dan melaporkan segmen operasi. Standar mengharuskan “pendekatan manajemen” dalam menyajikan informasi segmen menggunakan dasar yang sama seperti halnya pelaporan internal. Hal ini menyebabkan pengungkapan segmen Grup didasarkan pada aktivitas per entitas legal.

The standard requires entities to disclose information that enables users of the financial statements to evaluate the nature and financial effects of the business activities. The standard also enhances the definition of operating segment and the procedures used to identify and report operating segments. It requires a “management approach” under which segment information is presented on the same basis as that used for internal reporting purposes. This has resulted in the Group‟s segment disclosure being based on each legal entity‟s activities.

Segmen operasi dilaporkan dengan cara yang konsisten dengan pelaporan internal yang disampaikan kepada pengambil keputusan operasional. Dalam hal ini pengambil keputusan operasional yang mengambil keputusan strategis adalah Dewan Direksi.

An operating segment is reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker has been identified as the Board of Directors as this is the body within the Group that makes strategic decisions.

PSAK No. Berelasi

7:

Pengungkapan

Pihak-pihak

Standar menyempurnakan panduan untuk pengungkapan hubungan pihak-pihak berelasi, transaksi dan saldo termasuk komitmen. Standar juga memberikan penjelasan bahwa anggota personil manajemen kunci adalah pihak berelasi, sehingga mengharuskan pengungkapan atas remunerasi dan kompensasi personil manajemen kunci. Grup telah melakukan evaluasi terhadap hubungan pihak-pihak berelasi dan memastikan laporan keuangan konsolidasian telah disusun menggunakan persyaratan pengungkapan yang telah direvisi.


-

SFAS No. 7: Related Party Disclosures The standard enhances the guidance of disclosure of related party relationships, transactions and outstanding balances, including commitments. It also makes clear that a member of the key management personnel is a related party, which in turn requires the disclosure of each category of remuneration and compensation of the key management personnel. The Group has evaluated its related party relationships and ensured the consolidated financial statements have been prepared under the revised disclosure requirements.




KEBIJAKAN

Dasar penyusunan konsolidasian (lanjutan)

AKUNTANSI

PENTING

laporan

keuangan





Penerapan standar-standar tersebut tidak berdampak material terhadap kinerja Grup. Sebagai tambahan, Grup telah mengungkapkan informasi terkait dengan penyajian laporan keuangan, segmen operasi dan pengungkapan pihak-pihak berelasi sesuai dengan yang disyaratkan standar.

The adoption of the above standards did not have a material impact on the results of the Group. In addition, the Group has disclosed information on financial statement presentation, operating segments and related party disclosures as required by the relevant standards.

Berikut adalah standar baru, perubahan atas standar dan interpretasi standar yang wajib diterapkan untuk pertama kalinya untuk tahun buku yang dimulai 1 Januari 2011, namun tidak relevan atau tidak berdampak material terhadap laporan keuangan konsolidasian Grup untuk tahun 31 Desember 2011 :

The following new standards, amendments to standards and interpretations are mandatory for the first time for the financial year beginning 1 January 2011, but are not currently relevant or did not have a material impact for the Group‟s consolidated financial statement for the year ended 31 December 2011:

-

PSAK No. 2 (Revisi 2009), “Laporan Arus Kas”.

-

-

PSAK No. 3 (Revisi 2010), “Laporan Keuangan Interim”. PSAK No. 4 (Revisi 2009), “Laporan Keuangan Konsolidasian dan Laporan Keuangan Tersendiri”. PSAK No. 8 (Revisi 2010), “Peristiwa setelah Periode Laporan”. PSAK No. 12 (Revisi 2009), “Bagian Partisipasi dalam Ventura Bersama”. PSAK No. 15 (Revisi 2009), “Investasi Pada Entitas Asosiasi”. PSAK No. 19 (Revisi 2010), “Aset Tak Berwujud”. PSAK No. 22 (Revisi 2010), “Kombinasi Bisnis”. PSAK No. 23 (Revisi 2010), “Pendapatan”. PSAK No. 25 (Revisi 2009), “Kebijakan Akuntansi, Perubahan Estimasi Akuntansi dan Kesalahan”. PSAK No. 48 (Revisi 2009), “Penurunan Nilai Aset”. PSAK No. 57 (Revisi 2009), “Provisi, Liabilitas Kontinjensi dan Aset Kontinjensi”. PSAK No. 58 (Revisi 2009), “Aset Tidak Lancar yang Dimiliki untuk Dijual dan Operasi yang Dihentikan”. ISAK No. 7 (Revisi 2009), “Konsolidasi Entitas Bertujuan Khusus”. ISAK No. 9, “Perubahan atas Liabilitas Aktivitas Purna Operasi, Restorasi dan Liabilitas Serupa”. ISAK No. 10, “Program Loyalitas Pelanggan”. ISAK No. 11, “Distribusi Aset Nonkas kepada Pemilik”.

-

-

-

SFAS No. 2 (Revised 2009), “Statements of Cash Flows”. SFAS No. 3 (Revised 2010), “Interim Financial Reporting”. SFAS No. 4 (Revised 2009), “Consolidated and Separate Financial Statements”. SFAS No. 8 (Revised 2010), “Events after the Reporting Period”. SFAS No. 12 (Revised 2009), “Interests in Joint Ventures”. SFAS No. 15 (Revised 2009), “Investments in Associates”. SFAS No. 19 (Revised 2010), “Intangible Assets”. SFAS No. 22 (Revised 2010), “Business Combinations”. SFAS No. 23 (Revised 2010), “Revenue”. SFAS No. 25 (Revised 2009), “Accounting Policies, Changes in Accounting Estimates and Errors”. SFAS No. 48 (Revised 2009), “Impairment of Assets”. SFAS No. 57 (Revised 2009), “Provisions, Contingent Liabilities and Contingent Assets”. SFAS No. 58 (Revised 2009), “Non-Current Assets, Held for Sale and Discontinued Operations”. ISFAS No. 7 (Revised 2009), “Consolidation of Special Purpose Entities”. ISFAS No. 9, “Changes in Existing Decommissioning, Restoration and Similar Liabilities”. ISFAS No. 10, “Customer Loyalty Programs”. ISFAS No. 11, “Distribution of Non-cash Assets to Owners”.




Dasar penyusunan konsolidasian (lanjutan) -

b.

KEBIJAKAN

AKUNTANSI

PENTING

laporan

keuangan



-

ISAK No. 12, “Pengendalian Bersama Entitas: Kontribusi Nonmoneter oleh Venturer”. ISAK No. 14, “Aset Tak Berwujud - Biaya Situs Web”. ISAK No. 19, “Aplikasi Pendekatan Penyajian Kembali pada PSAK 63 Pelaporan Keuangan dalam ekonomi hiperinflasi”. ISAK No. 22, “Perjanjian Konsesi Jasa: Pengungkapan”. ISAK No. 23, “Sewa Operasi - Insentif”. ISAK No. 24, “Evaluasi Substansi Beberapa Transaksi yang Melibatkan suatu Bentuk Legal Sewa”.

Konsolidasi


-

b.


ISFAS No. 12, “Jointly Controlled Entities: NonMonetary Contributions by Venturers”. ISFAS No. 14, “Intangible Assets - Website Costs”. ISFAS No. 19, “Applying the Restatement Approach under SFAS 63: Financial Reporting in Hyperinflationary Economies”. ISFAS No. 22, “Service Concession Arrangements : Disclosure”. ISFAS No. 23, “Operating Leases - Incentives”. ISFAS No. 24, “Evaluating the Substance of Transactions Involving the Legal Form of a Lease”.

Consolidation

Entitas anak adalah seluruh entitas (termasuk entitas bertujuan khusus) dimana Grup memiliki kekuasaan untuk mengatur kebijakan keuangan dan operasional atasnya, biasanya melalui kepemilikan lebih dari setengah hak suara. Keberadaan dan dampak dari hak suara potensial yang saat ini dapat dilaksanakan atau dikonversi, dipertimbangkan ketika menilai apakah Grup mengendalikan entitas lain. Entitas anak dikonsolidasikan secara penuh sejak tanggal pengendalian dialihkan kepada Grup. Entitas anak tidak dikonsolidasikan sejak tanggal Grup kehilangan pengendalian.

Subsidiaries are all entities (including special purpose entities) over which the Group has the power to govern the financial and operating policies generally accompanying a shareholding of more than one half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date on which that control ceases.

Grup menggunakan metode akuisisi untuk mencatat kombinasi bisnis. Imbalan yang dialihkan untuk akuisisi suatu entitas anak adalah sebesar nilai wajar aset yang dialihkan, liabilitas yang diakui dan kepentingan ekuitas yang diterbitkan oleh Grup. Imbalan yang dialihkan termasuk nilai wajar aset atau liabilitas yang timbul dari kesepakatan imbalan kontinjensi. Biaya terkait akuisisi dibebankan ketika terjadi. Aset teridentifikasi yang diperoleh dan liabilitas serta liabilitas kontinjensi yang diambil alih dalam suatu kombinasi bisnis diukur pada awalnya sebesar nilai wajar pada tanggal akuisisi. Untuk setiap akuisisi, Grup mengakui kepentingan nonpengendali pada pihak yang diakuisisi baik sebesar nilai wajar atau sebesar bagian proporsional kepentingan nonpengendali atas aset neto pihak yang diakuisisi.

The Group uses the acquisition method of accounting to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. On an acquisition-by-acquisition basis, the Group recognises any non-controlling interest in the acquiree either at fair value or at the noncontrolling interest‟s proportionate share of the acquiree‟s net assets.




IKHTISAR (lanjutan) b.

c.

KEBIJAKAN

AKUNTANSI

PENTING

Konsolidasi (lanjutan)


SUMMARY OF SIGNIFICANT POLICIES (continued) b.

ACCOUNTING

Consolidation (continued)

Selisih lebih imbalan yang dialihkan, jumlah kepentingan nonpengendali pada pihak yang diakuisisi serta nilai wajar pada tanggal akuisisi kepentingan ekuitas sebelumnya dimiliki pihak pengakuisisi atas nilai wajar aset teridentifikasi yang diakuisisi dicatat sebagai properti pertambangan. Jika jumlah ini lebih rendah dari nilai wajar aset neto entitas yang diakuisisi dalam kasus pembelian dengan diskon, selisihnya diakui langsung dalam laporan laba rugi.

The excess of the consideration transfered, the amount of any noncontrolling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the Group‟s share of the identifiable net assets acquired is recorded as mining properties. If this is less than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the difference is recognised directly in the profit or loss.

Transaksi, saldo, dan keuntungan antar entitas Grup yang belum direalisasi telah dieliminasi. Kerugian yang belum direalisasi juga dieliminasi. Kebijakan akuntansi entitas anak diubah jika diperlukan untuk memastikan konsistensi dengan kebijakan akuntasi yang diadopsi Grup.

Inter-company transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are Accounting policies of also eliminated. subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

Penjabaran mata uang asing (i) Mata uang pelaporan Laporan keuangan konsolidasian disajikan dalam Dolar AS yang merupakan mata uang fungsional dan pencatatan Grup. (ii) Transaksi dan saldo

c.

Foreign currency translation (i) Reporting currency The consolidated financial statements are presented in US Dollars, which is the functional currency and reporting currency of the Group. (ii) Transactions and balances

Transaksi dalam mata uang selain Dolar AS dikonversi menjadi mata uang Dolar AS menggunakan kurs yang berlaku pada tanggal transaksi. Pada akhir tahun, aset dan liabilitas moneter dalam mata uang selain Dolar AS dikonversi menjadi Dolar AS dengan kurs yang berlaku pada tanggal tersebut. Keuntungan dan kerugian yang timbul dari penjabaran aset dan liabilitas moneter dalam mata uang selain Dolar AS diakui dalam laporan laba rugi komprehensif konsolidasian, kecuali jika ditangguhkan di dalam ekuitas sebagai lindung nilai arus kas dan lindung nilai investasi bersih yang memenuhi syarat.

Transactions denominated in currencies other than US Dollars are converted into US Dollars at the exchange rate prevailing at the date of the transaction. At the end of the year, monetary assets and liabilities in currencies other than US Dollars are translated into US Dollars at the exchange rate prevailing at that date. Exchange gains and losses arising on the translation of monetary assets and liabilities in currencies other than US Dollars are recognised in the consolidated statements of comprehensive income, except when deferred in equity as qualifying cash flow hedges and qualifying net investment hedges.

Kurs, berdasarkan kurs tengah Bank Indonesia, yang digunakan pada akhir tahun adalah sebagai berikut:

The rates of exchange, based on the Bank Indonesia middle rate, used at the end of the year were as follows:



IKHTISAR (lanjutan) c.

KEBIJAKAN

AKUNTANSI

PENTING


Penjabaran mata uang asing (lanjutan)

c.

Rupiah per Dolar AS Euro per Dolar AS

9,068 0.773

8,991 0.752

Pound Sterling Inggris per Dolar AS

0.649

0.647

Dolar Australia per Dolar AS

0.985

0.983

77.635

81.521

1.300

1.288

31.749

30.104

3.179

3.083

Yen Jepang per Dolar AS Dolar Singapura per Dolar AS Baht Thailand per Dolar AS Ringgit Malaysia per Dolar AS

e.

Piutang usaha dan piutang lain-lain

ACCOUNTING

Foreign currency translation (continued) 2010

2011

d.

SUMMARY OF SIGNIFICANT POLICIES (continued)

Indonesian Rupiah (“Rupiah”) equivalent to US$1 Euro equivalent to US$1 Great Britain Pound Sterling equivalent to US$1 Australian Dollar equivalent to US$1 Japanese Yen equivalent to US$1 Singapore Dollar equivalent to US$1 Thailand Baht equivalent to US$1 Malaysian Ringgit equivalent to US$1

d. Trade receivables and other receivables

Piutang usaha adalah jumlah piutang pelanggan atas penjualan batubara atau jasa yang diberikan sehubungan dengan kegiatan usaha. Piutang lainlain adalah jumlah piutang pihak ketiga atau pihak berelasi diluar kegiatan usaha. Bila pembayaran diharapkan akan diterima dalam jangka waktu satu tahun atau kurang, maka diklasifikasikan sebagai aset lancar. Bila tidak, disajikan sebagai aset tidak lancar.

Trade receivables are amounts due from customers for coal sold or services performed in the ordinary course of business. Other receivables are amounts due from third or related parties for transactions outside the ordinary course of business. If collection is expected in one year or less, they are classified as current assets. If not, they are presented as noncurrent assets.

Piutang usaha dan piutang lain-lain pada awalnya diakui pada nilai wajar dan kemudian diukur dengan menggunakan biaya perolehan diamortisasi dengan menggunakan metode suku bunga efektif, dikurangi dengan penyisihan penurunan nilai.

Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment.

Persediaan Persediaan batubara merupakan batubara yang menjadi hak Grup dan dinilai berdasarkan nilai terendah antara harga perolehan atau nilai realisasi bersih. Harga perolehan ditentukan dengan metode rata-rata bergerak dan mencakup alokasi komponen biaya bahan baku, tenaga kerja, penyusutan, dan biaya tidak langsung yang berkaitan dengan aktivitas penambangan. Nilai realisasi bersih adalah estimasi nilai penjualan dalam kondisi bisnis normal setelah dikurangi dengan estimasi biaya penyelesaian dan beban penjualan.


e. Inventories Coal inventories represent the Group‟s entitlement to coal on hand and are valued at the lower of cost or net realisable value. Cost is determined on a moving average basis and includes an appropriate allocation of materials, labour, depreciation and overheads related to mining activities. Net realisable value is the estimated sales amount in the ordinary course of business, less the estimated costs of completion and selling expenses.



IKHTISAR (lanjutan) e.

f.

KEBIJAKAN

AKUNTANSI

PENTING

Persediaan (lanjutan)



ACCOUNTING

e. Inventories (continued)

Suku cadang dan bahan-bahan pendukung lainnya dinilai berdasarkan harga perolehan yang ditentukan dengan metode rata-rata bergerak setelah dikurangi dengan penyisihan atas persediaan yang sudah usang. Suku cadang dan bahan-bahan pendukung lainnya dicatat sebagai biaya produksi pada saat digunakan.

Stores and consumable supplies are valued at cost, determined on a moving average basis, less provision for obsolete items. Stores and consumable supplies are charged to production costs in the period they are used.

Penyisihan atas persediaan suku cadang dan bahan-bahan pendukung yang sudah usang dan bergerak lambat ditentukan berdasarkan estimasi penggunaan atau penjualan masing-masing jenis persediaan pada masa mendatang.

A provision for obsolete and slow moving stores and consumable supplies is determined on the basis of estimated future usage or sale of individual inventory items.

Aset tetap

f.

Fixed assets Fixed assets are stated at cost of acquisition, less accumulated depreciation. Fixed assets are depreciated using the straight-line method to their estimated residual value over the lesser of the estimated useful lives of the assets, the life of mine, or the term of the Coal Agreement or Mining Business Licence as follows:

Aset tetap diakui sebesar harga perolehan dikurangi akumulasi penyusutan. Aset tetap disusutkan menggunakan metode garis lurus hingga mencapai nilai sisa, selama periode yang lebih rendah antara estimasi masa manfaat aset, umur tambang, atau masa PKP2B atau Izin Usaha Pertambangan, sebagai berikut: Tahun/ Years Hak atas tanah dan pematangan tanah Bangunan Infrastruktur Pabrik, mesin, dan peralatan Perabotan dan perlengkapan kantor Kendaraan

10 5 - 20 5 - 20 3 - 20 4-5 4-5

Land rights and land improvements Buildings Infrastructure Plant, machinery, and equipment Office furniture and fixtures Vehicles

Hak atas tanah disusutkan selama perkiraan periode penggunaan, yang lebih dahulu antara penambangan batubara atau penyelesaian pemutusan PKP2B atau Izin Usaha Pertambangan.

Land rights are depreciated over the expected period of use, being the earlier of the completion of coal mining in the relevant area or the termination of the Coal Agreement or Mining Business Licence.

Biaya hukum yang terkait dengan perolehan hak atas tanah dikapitalisasi dan diamortisasi selama masa manfaat hak atas tanah tersebut.

Legal costs associated with the acquisition of land rights are capitalised and amortised over their useful lives.

Biaya-biaya setelah pengakuan awal aset diakui sebagai bagian dari nilai tercatat aset atau sebagai aset yang terpisah, sebagaimana mestinya, hanya apabila kemungkinan besar Grup akan mendapatkan manfaat ekonomis masa depan berkenaan dengan aset tersebut dan biaya perolehan aset dapat diukur dengan handal. Nilai tercatat komponen yang diganti tidak lagi diakui. Biaya perbaikan dan pemeliharaan dibebankan ke dalam laporan laba rugi komprehensif konsolidasian dalam periode dimana biaya-biaya tersebut terjadi.

Subsequent costs are included in the asset‟s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to the consolidated statements of comprehensive income during the financial period in which they are incurred.



IKHTISAR (lanjutan) f.

g.

KEBIJAKAN

AKUNTANSI

PENTING

Aset tetap (lanjutan)


SUMMARY OF SIGNIFICANT POLICIES (continued) f.

ACCOUNTING

Fixed assets (continued)

Masa manfaat aset dan nilai sisa ditelaah dan disesuaikan, jika diperlukan, setidaknya setiap akhir tahun buku. Dampak dari setiap revisi diakui dalam laporan laba-rugi komprehensif konsolidasian, ketika perubahan terjadi.

The assets‟ useful lives and residual values are reviewed and adjusted if appropriate, at least at the financial year-end. The effects of any revisions are recognised in the comprehensive consolidated statements of income, when the changes arise.

Apabila suatu aset tetap sudah tidak digunakan atau dijual, nilai tercatatnya dikeluarkan dari laporan keuangan konsolidasian, dan keuntungan dan kerugian yang timbul diakui dalam laporan laba rugi komprehensif konsolidasian.

When assets are retired or otherwise disposed of, their carrying values are eliminated from the consolidated financial statements, and the resulting gains and losses on the disposal of fixed assets are recognised in the consolidated statements of comprehensive income.

Akumulasi biaya konstruksi bangunan dan pabrik serta pemasangan mesin dikapitalisasi sebagai aset dalam penyelesaian. Biaya-biaya tersebut direklasifikasi ke akun aset tetap pada saat proses konstruksi atau pemasangan selesai. Penyusutan mulai dibebankan pada tanggal yang sama.

The accumulated costs of the construction of buildings and plant and the installation of machinery are capitalised as construction in progress. These costs are reclassified to fixed asset accounts when the construction or installation is complete. Depreciation is charged from such date.

Biaya bunga dan biaya pinjaman lain, seperti biaya diskonto atas pinjaman baik yang secara langsung ataupun tidak langsung digunakan untuk mendanai proses pembangunan aset tertentu yang memenuhi syarat, dikapitalisasi sampai proses pembangunan tersebut selesai. Untuk pinjaman yang dapat diatribusi secara langsung pada suatu aset tertentu yang memenuhi syarat, jumlah yang dikapitalisasi adalah sebesar biaya pinjaman yang terjadi selama tahun berjalan, dikurangi pendapatan investasi jangka pendek dari pinjaman tersebut. Untuk pinjaman yang tidak dapat diatribusi secara langsung pada suatu aset tertentu yang memenuhi syarat, jumlah biaya pinjaman yang dikapitalisasi ditentukan dengan mengalikan tingkat kapitalisasi dengan pengeluaran untuk aset tertentu yang memenuhi syarat. Tingkat kapitalisasi adalah ratarata tertimbang biaya pinjaman dibagi dengan jumlah pinjaman dari suatu periode tertentu, tidak termasuk pinjaman yang secara khusus digunakan untuk perolehan aset tertentu yang memenuhi syarat.

Interest and other borrowing costs, such as discount fees on loans either directly or indirectly used in financing construction of a qualifying asset, are capitalised up to the date when construction is complete. For borrowings directly attributable to a qualifying asset, the amount to be capitalised is determined as the actual borrowing costs incurred during the year, less any income earned on the temporary investment of such borrowings. For borrowings that are not directly attributable to a qualifying asset, the amount to be capitalised is determined by applying a capitalisation rate to the amount expended on the qualifying asset. The capitalisation rate is the weighted-average of the borrowing costs applicable to the total borrowings outstanding during the period, excluding borrowings directly attributable to financing the qualifying asset under construction.

Sewa

g.

Leases

Apabila dalam suatu kontrak sewa porsi yang signifikan atas risiko dan manfaat kepemilikan aset tetap berada ditangan lessor, maka sewa tersebut diklasifikasikan sebagai sewa operasi. Pembayaran sewa operasi dibebankan ke laporan laba rugi komprehensif konsolidasian atas dasar garis lurus selama masa sewa.

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the consolidated statements of comprehensive income on a straight-line basis over the period of the lease.

Sewa aset tetap dimana Grup memiliki secara substansi seluruh risiko dan manfaat kepemilikan aset diklasifikasikan sebagai sewa pembiayaan. Sewa pembiayaan dikapitalisasi pada awal masa sewa sebesar nilai wajar aset sewaan atau sebesar nilai kini pembayaran sewa minimum, jika nilai kini lebih rendah dari nilai wajar.

Leases of fixed assets where the Group has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalised at the lease‟s commencement at the lower of the fair value of the leased property and the present value of the minimum lease payments.




IKHTISAR (lanjutan) g.

KEBIJAKAN

AKUNTANSI

PENTING

Sewa (lanjutan)


SUMMARY OF SIGNIFICANT POLICIES (continued) g.

Biaya eksplorasi dan pengembangan yang ditangguhkan

Leases (continued) Each lease payment is allocated between the liabilities and finance charges so as to achieve a constant rate of interest on the finance balance outstanding. The interest element of the finance cost is charged to the consolidated statement of comprehensive income over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. Fixed assets acquired under finance leases are depreciated similarly to owned assets. If there is no reasonable certainty that the Group will hold the ownership by the end of the lease term, the asset is depreciated over the shorter of the useful life of the asset and the lease term.

Setiap pembayaran sewa dialokasikan antara bagian yang merupakan pelunasan liabilitas dan bagian yang merupakan biaya keuangan sedemikian rupa sehingga menghasilkan tingkat suku bunga yang konstan atas saldo pembiayaan. Unsur bunga dalam biaya keuangan dibebankan di laporan laba rugi komprehensif konsolidasian selama masa sewa sedemikian rupa sehingga menghasilkan suatu tingkat suku bunga periodik yang konstan atas saldo liabilitas setiap periode. Aset tetap yang diperoleh melalui sewa pembiayaan disusutkan dengan metode yang sama dengan metode penyusutan aset tetap yang dimiliki sendiri. Jika tidak terdapat kepastian yang memadai bahwa Grup akan mendapatkan kepemilikan atas aset pada akhir masa sewa, aset tersebut disusutkan selama jangka waktu yang lebih pendek antara umur manfaat aset dan masa sewa. h.

ACCOUNTING

h.

Deferred exploration expenditure

and

development

Biaya eksplorasi dikapitalisasi dan ditangguhkan, untuk setiap area of interest, apabila memenuhi salah satu dari ketentuan berikut ini:

Exploration expenditure is capitalised and carried forward, on an area of interest basis, provided one of the following conditions is met:

(i)

(i)

Biaya tersebut diharapkan dapat diperoleh kembali melalui keberhasilan pengembangan dan eksploitasi area of interest tersebut atau melalui penjualan area of interest tersebut; atau

Such costs are expected to be recouped through successful development and exploitation of the area of interest or, alternatively, by its sale; or

(ii) Kegiatan eksplorasi dalam area of interest belum mencapai tahap yang memungkinkan penentuan adanya cadangan terbukti yang secara ekonomis dapat diperoleh, dan kegiatan yang aktif dan signifikan dalam atau berhubungan dengan area of interest tersebut masih berlanjut.

(ii) Exploration activities in the area of interest have not yet reached the stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in or in relation to the area are continuing.

Pemulihan biaya eksplorasi yang ditangguhkan tergantung suksesnya pengembangan dan eksploitasi secara komersial, atau penjualan dari area of interest yang terkait. Setiap area of interest ditelaah pada setiap akhir periode akuntansi. Biaya eksplorasi yang terkait pada suatu area of interest yang telah ditinggalkan atau yang telah diputuskan Direksi Grup bahwa area of interest tersebut tidak layak secara ekonomis, dihapuskan pada periode keputusan tersebut dibuat.

Ultimate recoupment of exploration expenditure carried forward is dependent upon successful development and commercial exploitation, or alternatively, sale of the respective area of interest. Each area of interest is reviewed at the end of each accounting period. Exploration expenditure in respect of an area of interest, which has been abandoned, or for which a decision has been made by the Group‟s Directors against the commercial viability of the area are written-off in the period the decision is made.

Biaya pengembangan tambang dan biaya-biaya lain yang terkait dengan pengembangan suatu area of interest yang terjadi sebelum dimulainya operasi di area tersebut, sepanjang telah memenuhi kriteria untuk penangguhan, akan dikapitalisasi.

Mine development expenditure and incorporated costs in developing an area of interest prior to commencement of operations in the respective area, as long as they meet the criteria for deferral, are capitalised.



IKHTISAR (lanjutan) h.

i.

KEBIJAKAN

AKUNTANSI

PENTING

Biaya eksplorasi dan pengembangan yang ditangguhkan (lanjutan)


SUMMARY OF SIGNIFICANT POLICIES (continued) h.

Deferred exploration expenditure (continued)

ACCOUNTING

and

development

Biaya eksplorasi dan pengembangan yang ditangguhkan mencakup akumulasi biaya yang terkait dengan penyelidikan umum, administrasi dan perizinan, geologi dan geofisika, dan biaya-biaya yang terjadi untuk mengembangkan area tambang sebelum dimulainya operasi secara komersial.

Deferred exploration and development expenditure represents the accumulated costs relating to general investigation, administration and licence, geology and geophysics expenditures and costs incurred to develop a mine before the commencement of the commercial operations.

Biaya eksplorasi dan pengembangan diamortisasi berdasarkan unit produksi sejak dimulainya produksi secara komersial dengan memperhatikan masa PKP2B atau Izin Usaha Pertambangan.

Deferred exploration and development expenditure is amortised based on the units of production method, from the commencement of commercial production and giving regard to the term of the Coal Agreement or Mining Business Licence.

Biaya bunga dan biaya pinjaman lain, seperti biaya diskonto atas pinjaman baik yang secara langsung ataupun tidak langsung digunakan untuk mendanai aktivitas eksplorasi dan pengembangan, sepanjang telah memenuhi kriteria untuk penangguhan, dikapitalisasi sampai aktivitas eksplorasi dan pengembangan tersebut selesai. Untuk pinjaman yang dapat diatribusi secara langsung pada suatu aktivitas tertentu, jumlah yang dikapitalisasi adalah sebesar biaya pinjaman yang terjadi selama tahun berjalan, dikurangi pendapatan investasi jangka pendek dari pinjaman tersebut. Untuk pinjaman yang tidak dapat diatribusi secara langsung pada suatu aktivitas tertentu, jumlah biaya pinjaman yang dikapitalisasi ditentukan dengan mengalikan tingkat kapitalisasi dengan pengeluaran untuk aktivitas eksplorasi dan pengembangan. Tingkat kapitalisasi adalah rata-rata tertimbang biaya pinjaman dibagi dengan jumlah pinjaman dari suatu periode tertentu, tidak termasuk pinjaman yang secara khusus digunakan untuk aktivitas eksplorasi dan pengembangan tertentu.

Interest and other borrowing costs, such as discount fees on loans either directly or indirectly used in financing exploration and development activities, as long as they meet the criteria for deferral, are capitalised up to the date when the exploration and development activities are complete. For borrowings directly attributable to a specific activity, the amount to be capitalised is determined as the actual borrowing costs incurred during the year, less any income earned on the temporary investment of such borrowings. For borrowings that are not directly attributable to a specific activity, the amount to be capitalised is determined by applying a capitalisation rate to the amount expended on the exploration and development activities. The capitalisation rate is the weighted-average of the borrowing costs applicable to the total borrowings outstanding during the period, excluding borrowings directly attributable to financing the relevant exploration and development activities.

Penurunan nilai aset non-keuangan

i.

Impairment of non-financial assets

Pada akhir tahun, Grup melakukan telaah untuk menentukan ada tidaknya indikasi penurunan nilai aset.

At the end of the year, the Group undertakes a review to determine whether there is any indication of asset impairment.

Aset tetap dan aset tidak lancar lainnya ditelaah untuk mengetahui apakah telah terjadi kerugian akibat penurunan nilai apabila terjadi kondisi atau perubahan yang mengindikasikan bahwa nilai tercatat aset tidak dapat diperoleh kembali secara penuh. Kerugian akibat penurunan nilai diakui sebesar selisih antara nilai tercatat aset dengan jumlah terpulihkan dari aset tersebut. Jumlah terpulihkan adalah yang lebih tinggi antara harga jual neto atau nilai pakai aset. Dalam rangka menguji penurunan nilai, aset-aset dikelompokkan hingga unit terkecil yang menghasilkan arus kas terpisah. Pemulihan penyisihan penurunan nilai diakui sebagai pendapatan dalam periode dimana pemulihan tersebut terjadi.

Fixed assets and other non-current assets are reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which an asset‟s carrying amount exceeds its recoverable amount, which is the higher of an asset‟s net selling price or value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows. Reversal of an impairment provision is recorded as income in the period when the reversal occurs.




IKHTISAR (lanjutan) j.

k.

KEBIJAKAN

AKUNTANSI

PENTING

Properti pertambangan


SUMMARY OF SIGNIFICANT POLICIES (continued) j.

ACCOUNTING

Mining properties

Properti pertambangan dinyatakan sebesar biaya perolehan dan merupakan penyesuaian nilai wajar properti pertambangan pada tanggal akuisisi untuk TCM, Bharinto, dan JBG.

Mining properties are stated at cost and represent the fair value adjustment of properties acquired at the date of acquisition of TCM, Bharinto and JBG.

Saldo properti pertambangan terkait dengan TCM dan JBG diamortisasi selama umur properti menggunakan metode unit produksi sejak tanggal dimulainya operasi komersial. Saldo properti pertambangan Bharinto akan diamortisasi sejak dimulainya operasi komersial. Amortisasi tersebut menggunakan basis estimasi cadangan. Perubahan dalam estimasi cadangan dilakukan secara prospektif, dimulai sejak awal periode terjadinya perubahan.

The mining properties balances related to TCM and JBG are amortised over the life of the property using the units of production method from the date of the commencement of commercial operations. The mining properties balance related to Bharinto will be amortised from the date of the commencement of commercial operations. The amortisation is based on estimated reserves. Changes in estimated reserves are accounted for on a prospective basis, from the beginning of the period in which the change occurs.

Pengakuan pendapatan dan beban

k.

Revenue and expense recognition

Penjualan bersih merupakan penghasilan yang diperoleh dari penjualan produk-produk Grup dan pemberian jasa pelabuhan dan jasa lain setelah dikurangi retur, potongan penjualan, bea, denda keterlambatan kapal, dan Pajak Pertambahan Nilai (“PPN”).

Net sales represent revenue earned from the sale of the Group‟s products, and delivery of port and other services, net of returns, trade allowances, duties, demurrage, and Value Added Tax (“VAT”).

Pendapatan dari penjualan barang diakui jika seluruh kondisi berikut terpenuhi:

Sales are recognised as revenue when the conditions as follow fulfil:



Grup telah memindahkan risiko dan manfaat kepemilikan barang secara signifikan kepada pembeli;



the Group has transferred to the buyer the significant risks and rewards of ownership of the goods;



Grup tidak lagi melanjutkan pengelolaan yang biasanya terkait dengan kepemilikan atas barang ataupun melakukan pengendalian efektif atas barang yang dijual;



the Group retains neither continuing managerial involvement nor effective control over the goods sold;



Jumlah pendapatan dapat diukur secara andal;



the amount of revenue can be measured reliably;



Kemungkinan besar manfaat ekonomi yang terkait dengan transaksi tersebut akan mengalir ke Grup; dan



it is probable that the economic benefits associated with the transaction will flow to the Group; and



Biaya yang terjadi atau akan terjadi sehubungan transaksi penjualan tersebut dapat diukur secara andal.



the costs incurred or to be incurred with respect to the sales transaction can be measured reliably.



IKHTISAR (lanjutan) k.

l.

KEBIJAKAN

AKUNTANSI

PENTING

Pengakuan pendapatan dan beban (lanjutan)


SUMMARY OF SIGNIFICANT POLICIES (continued) k.

ACCOUNTING

Revenue and expense recognition (continued)

Penghasilan dari penjualan ekspor diakui pada saat pengiriman barang kepada pelanggan sesuai dengan persyaratan penjualan yang telah disepakati. Penghasilan dari penjualan domestik diakui ketika barang telah dikirim kepada pelanggan sesuai dengan persyaratan penjualan yang telah disepakati atau ketika jasa telah diberikan kepada pelanggan.

Revenue from export sales is recognised upon shipment of the goods to the customer in accordance with the terms of sale. Revenue from domestic sales is recognised when goods are delivered to customers in accordance with the terms of sale or when services are rendered to customers.

Beban diakui pada saat terjadinya dengan basis akrual.

Expenses are recognised as incurred on an accrual basis.

Perpajakan

l.

Taxation

Biaya pajak untuk tahun berjalan terdiri dari pajak kini dan tangguhan. Pajak diakui pada laporan laba rugi komprehensif, kecuali untuk hal yang diakui langsung di ekuitas. Untuk kasus ini, pajaknya juga langsung diakui di ekuitas.

The tax expense for the year comprises current and deferred tax. Tax is recognised in the statements of comprehensive income, except to the extent that it relates to items recognised directly in equity. In this case, the tax is also recognised in equity.

Manajemen secara periodik mengevaluasi posisi yang dilaporkan di Surat Pemberitahuan Tahunan (SPT) sehubungan dengan situasi di mana aturan pajak yang berlaku membutuhkan interpretasi. Jika perlu, manajemen menentukan provisi berdasarkan jumlah yang diharapkan akan dibayar kepada otoritas pajak.

Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. Where appropriate, it establishes provisions based on the amounts expected to be paid to the tax authorities.

Pajak penghasilan tangguhan diakui, dengan menggunakan metode balance sheet liability untuk semua perbedaan temporer antara dasar pengenaan pajak aset dan liabilitas dengan nilai tercatatnya. Namun, pajak penghasilan tangguhan tidak diakui jika berasal dari pengakuan awal aset atau liabilitas yang timbul dari transaksi selain kombinasi bisnis yang pada saat transaksi tersebut tidak mempengaruhi laba rugi akuntansi dan laba rugi kena pajak. Rugi pajak yang dapat dikompensasi diakui sebagai aset pajak tangguhan jika besar kemungkinan jumlah penghasilan kena pajak di masa depan akan memadai untuk dikompensasi dengan rugi fiskal yang masih dapat dimanfaatkan. Pajak penghasilan tangguhan ditentukan dengan menggunakan tarif pajak yang telah berlaku atau secara substantif telah berlaku pada akhir periode pelaporan dan diharapkan diterapkan ketika aset pajak penghasilan tangguhan direalisasi atau liabilitas pajak penghasilan tangguhan diselesaikan.

Deferred income tax is recognised, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. However, the deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Tax loss carryforward is recognised as a deferred tax asset when it is probable that there will be future taxable profit available against which the unused tax losses can be utitilised. Deferred income tax is determined using tax rates pursuant to laws or regulations that have been enacted or substantially enacted by the reporting date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Aset pajak penghasilan tangguhan diakui hanya jika besar kemungkinan jumlah penghasilan kena pajak di masa depan akan memadai untuk dikompensasi dengan perbedaan temporer yang masih dapat dimanfaatkan.

Deferred income tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.




IKHTISAR (lanjutan)

KEBIJAKAN

AKUNTANSI

PENTING

m. Biaya pengupasan

n.



ACCOUNTING

m. Stripping costs

Untuk area pertambangan dimana pengupasan tanah dilakukan berdasarkan rasio rata-rata pengupasan umur tambang, biaya pengupasan tanah dibebankan sebagai biaya produksi berdasarkan rasio rata-rata pengupasan tanah umur tambang. Jika rasio pengupasan aktual melebihi rasio rata-rata pengupasan umur tambang, kelebihan biaya pengupasan tanah ditangguhkan dan dicatat di laporan posisi keuangan konsolidasian sebagai biaya pengupasan tanah yang ditangguhkan. Jika rasio pengupasan aktual lebih kecil daripada rasio rata-rata pengupasan umur tambang, selisihnya dibebankan pada saldo biaya pengupasan tanah yang ditangguhkan dari tahun sebelumnya atau dicatat di laporan posisi keuangan konsolidasian sebagai biaya pengupasan tanah yang masih harus dibayar. Perubahan atas estimasi rasio rata-rata pengupasan umur tambang diperhitungkan secara prospektif sepanjang sisa umur tambang.

For mining areas where stripping is performed based on a life of mine average stripping ratio, stripping costs are recognised as production costs based on the average life of mine stripping ratio. When the actual stripping ratio exceeds the life of mine average, the excess stripping costs are deferred and recorded in the consolidated statements of financial position as deferred stripping costs. When the actual stripping ratio is lower than the life of mine average, the difference is adjusted against the amount of deferred stripping costs carried forward from prior years or is recognised in the consolidated statements of financial position as accrued stripping costs. Changes in the estimated average life of mine stripping ratio are accounted for on a prospective basis over the remaining mine life.

Untuk area pertambangan lainnya, biaya pengupasan tanah dibebankan sebagai biaya produksi berdasarkan rasio aktual pengupasan tanah selama tahun tersebut. Biaya pengupasan tanah yang terjadi untuk memindahkan tanah yang belum menghasilkan batubara akan ditangguhkan dan akan diakui sebagai biaya produksi ketika batubara tersebut ditambang. Biaya pengupasan tanah yang ditangguhkan akan dihapus dalam periode dimana dinyatakan tidak terdapat batubara dan/atau batubara yang ada tidak ekonomis untuk ditambang.

For other mining areas, stripping costs are recognised as production costs based on the actual stripping ratio for the year. Stripping costs incurred for removal of overburden without exposing the coal are deferred and will be recognised as production costs when the coal has been exposed. Deferred stripping costs are written-off during the period in which the coal is determined to be not available and/or not economic to be mined.

Kewajiban lingkungan

n.

Environmental obligations

Kewajiban lingkungan terdiri dari biaya-biaya yang berkaitan dengan reklamasi tambang selama masa operasi, penutupan tambang, dan pembongkaran dan pemindahan fasilitas dan aktivitas penutupan lainnya.

The environmental obligations consist of costs associated with mine reclamation during mine operation, mine closure, and decommissioning and demobilisation of facilities and other closure activities.

Tambahan penyisihan untuk biaya reklamasi tambang dan penutupan tambang dihitung berdasarkan kuantitas produksi.

Provision for estimated costs of mine reclamation and mine closure is recorded on an incremental basis based on quantity produced.

Satuan yang digunakan sebagai dasar untuk pencatatan ditelaah secara berkala berdasarkan rencana reklamasi dan rencana penutupan tambang.

The rate used is subject to regular review based on mine reclamation and mine closure plans.



IKHTISAR (lanjutan) n.

KEBIJAKAN

AKUNTANSI

PENTING

Kewajiban lingkungan (lanjutan)


SUMMARY OF SIGNIFICANT POLICIES (continued) n.

ACCOUNTING

Environmental obligations (continued)

Cadangan untuk pembongkaran, pemindahan, dan restorasi dicatat untuk mengakui kewajiban hukum yang berkaitan dengan penarikan aset tetap yang berasal dari akuisisi, pembangunan atau pengembangan dan/atau operasi normal aset tetap. Penarikan aset tetap ini termasuk penjualan, peninggalan, pendaurulangan atau penghapusan dengan cara lain, dan bukan dikarenakan penghentian sementara pemakaian.

Provision for decommissioning, demobilisation and restoration provides for legal obligations associated with the retirement of a tangible long-lived asset that results from the acquisition, construction or development and/or the normal operation of a longlived asset. The retirement of a long-lived asset includes its sale, abandonment, recycling or disposal in some other manner, other than temporary removal from service.

Kewajiban diakui sebagai liabilitas pada saat timbulnya kewajiban hukum yang berkaitan dengan penarikan sebuah aset, dan pada awalnya diakui sebesar nilai wajarnya. Kewajiban ini bertambah dari waktu ke waktu sampai mencapai jumlah penuh dengan melakukan pembebanan ke laporan laba rugi komprehensif konsolidasian. Disamping itu, biaya penarikan aset dalam jumlah yang setara dengan jumlah liabilitas dikapitalisasi sebagai bagian dari suatu aset tertentu dan kemudian disusutkan nilainya sepanjang masa manfaat aset tersebut. Liabilitas penarikan aset dibebankan pada lebih dari satu periode pelaporan, jika kejadian yang menimbulkan kewajiban itu timbul lebih dari satu periode pelaporan. Misalnya, bila ada sebuah fasilitas yang ditutup untuk selamanya tetapi rencana penutupan ditetapkan selama lebih dari satu periode pelaporan, biaya penutupan tersebut akan diakui selama periode pelaporan sampai rencana penutupan tersebut selesai. Setiap penambahan lapisan kewajiban yang terjadi setelah periode pelaporan akan dianggap sebagai tambahan lapisan kewajiban awal. Setiap tambahan lapisan kewajiban akan diakui sebesar nilai wajar. Tambahan kewajiban akan dinilai terpisah, diakui dan dicatat tanpa mempengaruhi kewajiban masa lalu.

The obligations are recognised as liabilities when a legal obligation with respect to the retirement of an asset is incurred, with the initial measurement of the obligation at fair value. These obligations are accreted to full value over time through charges to the consolidated statements of comprehensive income. In addition, an asset retirement cost equivalent to the liabilities is capitalised as part of the related asset‟s carrying value and is subsequently depreciated or depleted over the asset‟s useful life. A liability for an asset retirement obligation is incurred over more than one reporting period when the events that create the obligation occur over more than one reporting period. For example, if a facility is permanently closed but the closure plan is developed over more than one reporting period, the cost of the closure of the facility is incurred over the reporting periods when the closure plan is finalised. Any incremental liability incurred in a subsequent reporting period is considered to be an additional layer of the original liability. Each layer is initially measured at fair value. A separate layer shall be measured, recognised and accounted for prospectively.

Untuk hal-hal yang berkaitan dengan lingkungan yang mungkin tidak berkaitan dengan penarikan aset, dimana Grup merupakan pihak yang bertanggung jawab atas kewajiban tersebut dan kewajiban tersebut ada dan jumlahnya bisa diukur, Grup mencatat estimasi kewajiban tersebut. Dalam menentukan keberadaan kewajiban yang berkaitan dengan lingkungan tersebut, Grup mengacu pada kriteria pengakuan kewajiban sesuai dengan standar akuntansi yang berlaku.

For environmental issues that may not involve the retirement of an asset, where the Group is a responsible party and it is determined that a liability exists, and amounts can be quantified, the Group accrues for the estimated liability. In determining whether a liability exists in respect of such environmental issues, the Group applies the criteria for liability recognition under applicable accounting standards.




IKHTISAR (lanjutan) o.

KEBIJAKAN

AKUNTANSI

PENTING

Aset keuangan I.

Klasifikasi


SUMMARY OF SIGNIFICANT POLICIES (continued) o.

ACCOUNTING

Financial assets I.

Classification

Grup mengklasifikasikan aset keuangan dalam kategori berikut ini: diukur pada nilai wajar melalui laporan laba rugi, dan pinjaman dan piutang. Klasifikasi ini tergantung tujuan perolehan aset keuangan. Manajemen menentukan klasifikasi aset keuangan pada saat awal pengakuan.

The Group classifies its financial assets in the following categories: at fair value through profit or loss, and loans and receivables. The classification depends on the purpose for which were acquired. the financial assets Management determines the classification of its financial assets at initial recognition.

(i)

(i)

Aset keuangan diukur pada nilai wajar melalui laporan laba rugi Aset keuangan diukur pada nilai wajar melalui laporan laba rugi adalah aset keuangan yang dimiliki untuk diperdagangkan. Aset keuangan diklasifikasikan ke dalam kategori ini jika perolehannya terutama untuk dijual dalam jangka pendek. Derivatif juga dikategorikan sebagai dimiliki untuk diperdagangkan kecuali jika ditetapkan sebagai lindung nilai. Aset pada kategori ini diklasifikasikan sebagai aset lancar jika diharapkan dapat diselesaikan dalam waktu 12 bulan; jika tidak, aset tersebut diklasifikasikan sebagai tidak lancar.

(ii) Pinjaman yang diberikan dan piutang Pinjaman yang diberikan dan piutang adalah aset keuangan nonderivatif dengan pembayaran yang tetap atau dapat ditentukan dan tidak dikutip pada pasar aktif. Pinjaman yang diberikan dan piutang dimasukkan sebagai aset lancar, kecuali jika jatuh temponya melebihi 12 bulan setelah akhir periode pelaporan. Pinjaman yang diberikan dan piutang Grup terdiri dari “piutang usaha dan piutang lain-lain” dan “kas dan setara kas” pada laporan posisi keuangan.

Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss are financial assets held for trading. A financial asset is classified in this category if acquired principally for the purpose of selling in the short-term. Derivatives are also categorised as held for trading unless they are designated as hedges. Assets in this category are classified as current assets if they are expected to be settled within 12 months; otherwise, they are classified as noncurrent.

(ii) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for maturities greater than 12 months after the end of reporting period. These are classified as non-current assets. The Group‟s loans and receivables comprise “trade and other receivables” and “cash and cash equivalents” in the statement of financial position.




KEBIJAKAN

AKUNTANSI

PENTING

Aset keuangan (lanjutan) II.

Instrumen keuangan derivatif dan aktivitas lindung nilai Derivatif pada awalnya diakui sebesar nilai wajar pada tanggal kontrak derivatif disepakati dan selanjutnya diukur kembali sebesar nilai wajarnya. Metode untuk mengakui keuntungan atau kerugian yang dihasilkan tergantung apakah derivatif ditetapkan sebagai instrumen lindung nilai, dan jika demikian, sifat item yang dilindung nilai. Grup menetapkan derivatif tertentu sebagai:



ACCOUNTING

Financial assets (continued) II.

Derivative financial hedging activities

instruments

and

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured at their fair value. The method of recognising the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. The Group designates certain derivatives as either:



Lindung nilai atas nilai wajar aset atau liabilitas yang diakui atau komitmen pasti yang belum diakui (lindung nilai wajar);



Hedges of the fair value of recognised assets or liabilities or a firm commitment (fair value hedge);



Lindung nilai risiko tertentu yang terkait dengan aset atau liabilitas atau prakiraan transaksi yang kemungkinan besar terjadi (lindung nilai arus kas);atau



Hedges of a particular risk associated with a recognised asset or liability or a highly probable forecast transaction (cash flow hedge);or

Pada awal transaksi, Grup mendokumentasikan hubungan antara instrumen lindung nilai dengan item yang dilindung nilai, beserta tujuan risiko manajemen dan strategi pelaksanaan transaksi lindung nilai. Grup juga mendokumentasikan penilaian, pada saat dimulainya lindung nilai dan secara berkesinambungan, apakah derivatif yang digunakan dalam transaksi lindung nilai sangat efektif dalam saling hapus perubahan nilai wajar atau arus kas item yang dilindung nilai.


At the inception of the transaction, the Group documents the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items.




KEBIJAKAN

AKUNTANSI

PENTING


Instrumen keuangan derivatif dan aktivitas lindung nilai (lanjutan) Nilai wajar penuh derivatif lindung nilai diklasifikasikan sebagai aset tidak lancar atau liabilitas jangka panjang jika jatuh tempo yang tersisa untuk item yang dilindung nilai melebihi 12 bulan, dan sebagai aset lancar atau liabilitas jangka pendek jika jatuh tempo yang tersisa kurang dari 12 bulan. Derivatif yang diperdagangkan diklasifikasikan sebagai aset lancar atau liabilitas jangka pendek. (i) Lindung nilai atas nilai wajar



ACCOUNTING


Derivative financial instruments hedging activities (continued)

and

The full fair value of a hedging derivative is classified as a non-current asset or liability when the remaining maturity of hedged item is more than 12 months, and as a current asset or liability when the remaining maturity of the hedged item is less than 12 months. Trading derivatives are classified as a current asset or liability. (i) Fair value hedge

Perubahan nilai wajar derivatif yang ditetapkan dan memenuhi kriteria sebagai lindung nilai atas nilai wajar dicatat pada laporan laba rugi, bersama dengan perubahan nilai wajar aset atau liabilitas yang dilindung nilai terkait dengan risiko yang dilindung nilai. Keuntungan atau kerugian terkait dengan bagian yang tidak efektif diakui pada laporan laba rugi dalam “keuntungan/(kerugian) transaksi derivatif”.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the profit or loss, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. The gain or loss relating to the ineffective portion is recognised in the profit or loss within “gain/(loss) on derivative transactions”.

Jika lindung nilai tidak lagi memenuhi kriteria akuntansi lindung nilai, penyesuaian nilai tercatat item yang dilindung nilai dimana metode suku bunga efektif digunakan diamortisasi pada laporan laba rugi selama periode sampai dengan jatuh tempo.

If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item for which the effective interest method is used is amortised to profit or loss over the period to maturity.

(ii) Lindung nilai arus kas Bagian efektif atas perubahan nilai wajar derivatif yang ditetapkan dan memenuhi kriteria sebagai lindung nilai arus kas diakui pada ekuitas. Keuntungan dan kerugian terkait dengan bagian tidak efektif diakui langsung pada laporan laba rugi di dalam “keuntungan/(kerugian) transaksi derivatif”.

(ii) Cash flow hedge The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognise in equity. The gain or loss relating to the ineffective portion is recognised immediately in the “gain/(loss) on derivative transactions”.




KEBIJAKAN

AKUNTANSI

PENTING


Instrumen keuangan derivatif dan aktivitas lindung nilai (lanjutan) (ii) Lindung nilai arus kas (lanjutan)



ACCOUNTING


Derivative financial instruments hedging activities (continued)

and

(ii) Cash flow hedge (continued)

Jumlah yang terakumulasi pada ekuitas direklasifikasi ke dalam laporan laba rugi pada periode yang sama dimana item yang dilindung nilai mempengaruhi laba rugi (misalnya, ketika prakiraan penjualan yang dilindung nilai terjadi). Keuntungan atau kerugian yang berhubungan dengan bagian yang tidak efektif diakui dalam laporan laba rugi pada “keuntungan/(kerugian) transaksi derivatif”. Namun, jika prakiraan transaksi yang dilindung nilai menghasilkan pengakuan aset non-keuangan (misalnya, persediaan atau aset tetap), keuntungan dan kerugian yang sebelumnya ditangguhkan pada ekuitas ditransfer dari ekuitas dan dimasukkan ke dalam pengukuran awal biaya perolehan aset. Jumlah yang ditangguhkan pada akhirnya diakui pada beban pokok pendapatan dalam hal persediaan atau penyusutan dalam hal aset tetap.

Amounts accumulated in equity are recycled to profit or loss in the period when the hedged item affects profit or loss (for example, when the forecast sale that is hedged takes place). The gain or loss relating to the ineffective portion is recognised in the profit or loss within “other gain/(loss) on derivative transactions”. However, when the forecast transaction that is hedged result in the recognition of a non-financial asset (for example, inventory or property, plant and equipment), the gains and losses previously deferred in equity are transferred from equity and included in the initial measurement of the cost of the asset. The deferred amounts are ultimately recognised in cost of sales in the case of inventory or in depreciation in the case of property, plant and equipment.

Ketika instrumen lindung nilai telah kadaluwarsa atau dijual, atau ketika lindung nilai tidak lagi memenuhi kriteria akuntansi lindung nilai, keuntungan atau kerugian kumulatif yang masih ada di dalam ekuitas pada saat itu tetap berada pada ekuitas dan diakui ketika prakiraan transaksi pada akhirnya diakui pada laporan laba rugi. Ketika prakiraan transaksi tidak lagi diharapkan terjadi, keuntungan atau kerugian kumulatif yang telah dilaporkan pada ekuitas segera ditransfer pada laporan laba rugi dalam “keuntungan/(kerugian) transaksi derivatif”.

When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognised when the forecast transaction is ultimately recognised in the profit or loss. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the profit or loss derivative within “gain/(loss) on transactions”.





KEBIJAKAN

AKUNTANSI

PENTING

Aset keuangan (lanjutan)



III. Estimasi nilai wajar

Financial assets (continued) III. Fair value estimation

Grup menggunakan beberapa teknik penilaian yang digunakan secara umum untuk menentukan nilai wajar dari instrumen keuangan dengan tingkat kompleksitas yang rendah, seperti swap batubara, swap bahan bakar minyak dan kontrak forward. Input yang digunakan dalam teknik penilaian untuk instrumen keuangan di atas adalah data pasar yang dapat diobservasi.

The Group uses widely recognised valuation models for determining fair values of nonstandardised financial instruments of lower complexity, such as coal swaps, fuel swaps and forward contracts. For these financial instruments, inputs into models are generally market-observable.

Nilai wajar instrumen keuangan yang tidak diperdagangkan di pasar aktif ditentukan dengan menggunakan teknik penilaian. Grup menggunakan metode diskonto arus kas dengan menggunakan asumsi-asumsi yang didasarkan pada kondisi pasar pada tanggal akhir periode yang kemudian digunakan untuk menentukan nilai wajar dari instrumen keuangan.

The fair value of financial instruments that are not traded in active markets are determined by using valuation techniques. The Group uses discounted cash flow methods and makes assumptions that are based on market conditions existing at each period end date which are used to determine fair value for the financial instruments.

IV. Saling hapus antar instrumen keuangan

IV. Offsetting financial instruments Financial assets and liabilities are offset and the net amount is reported in the statement of financial position when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or realise the asset and settle the liability simultaneously.

Aset keuangan dan liabilitas keuangan saling hapus dan jumlah netonya dilaporkan pada laporan posisi keuangan ketika terdapat hak yang berkekuatan hukum untuk melakukan saling hapus atas jumlah yang telah diakui adanya niat untuk tersebut dan menyelesaikan secara neto, atau untuk merealisasikan aset dan menyelesaikan liabilitas secara simultan. p.

ACCOUNTING

Penurunan nilai dari aset keuangan

p.

Impairment of financial assets

Aset yang dicatat sebesar harga perolehan diamortisasi

Assets carried at amortised cost

Pada setiap akhir tahun pelaporan, Grup menilai apakah terdapat bukti objektif bahwa aset keuangan atau kelompok aset keuangan telah mengalami penurunan nilai. Aset keuangan atau kelompok aset keuangan diturunkan nilainya dan kerugian penurunan nilai terjadi hanya jika terdapat bukti objektif bahwa penurunan nilai akibat satu atau lebih peristiwa yang terjadi setelah pengakuan awal aset (“peristiwa rugi”) dan peristiwa rugi tersebut memiliki dampak pada arus kas masa depan diestimasi atas aset keuangan atau kelompok aset keuangan yang dapat diestimasi secara andal.

At the end of each reporting year, the Group assesses whether there is objective evidence that a financial asset or group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a “loss event”) and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.



IKHTISAR (lanjutan) p.

KEBIJAKAN

AKUNTANSI

PENTING

Penurunan nilai dari aset keuangan (lanjutan) Aset yang dicatat berdasarkan perolehan diamortisasi (lanjutan)

q.


SUMMARY OF SIGNIFICANT POLICIES (continued) p.

biaya

ACCOUNTING

Impairment of financial assets (continued) Assets carried at amortised cost (continued)

Grup pada awalnya mengevaluasi apakah terdapat bukti objektif mengenai penurunan nilai.

The Group first assesses evidence of impairment exists.

Untuk kategori pinjaman yang diberikan dan piutang, jumlah kerugian diukur sebesar selisih antara nilai tercatat aset dan nilai kini arus kas masa depan diestimasi (tidak termasuk kerugian kredit masa depan yang belum terjadi) yang didiskonto menggunakan suku bunga efektif awal dari aset tersebut. Nilai tercatat aset dikurangi dan jumlah kerugian diakui pada laporan laba rugi. Jika pinjaman yang diberikan atau investasi yang dimiliki sampai jatuh tempo memiliki tingkat bunga bervariasi, tingkat diskonto yang digunakan untuk mengukur kerugian penurunan nilai adalah tingkat bunga efektif saat ini yang ditentukan dalam kontrak. Untuk alasan praktis, Grup dapat mengukur penurunan nilai berdasarkan nilai wajar instrument dengan menggunakan harga pasar yang dapat diobservasi.

For loans and receivables category, the amount of the loss is measured as the difference between the asset‟s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset‟s original effective interest rate. The carrying amount of the asset is reduced and the amount of the loss is recognised in the profit or loss. If loan or held-to-maturity investment has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. As a practical expedient, the Group may measure impairment on the basis of an instrument‟s fair value using an observable market price.

Jika, pada periode selanjutnya, jumlah penurunan nilai berkurang dan penurunan tersebut dapat dihubungkan secara objektif dengan peristiwa yang terjadi setelah penurunan nilai diakui (misalnya meningkatnya peringkat kredit debitor), pemulihan atas jumlah penurunan nilai yang telah diakui sebelumnya diakui pada laporan laba rugi.

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised (such as an improvement in the debtor‟s credit rating), the reversal of the previously recognised impairment loss is recognised in the profit or loss.

Imbalan karyawan (i)

Kewajiban imbalan pasca masa kerja

q.

whether

objective

Employee benefits (i) Post-retirement benefit obligations

Program pensiun imbalan pasti adalah program pensiun yang menentukan jumlah imbalan pensiun yang akan diberikan, biasanya berdasarkan satu faktor atau lebih seperti usia, masa kerja, atau kompensasi.

A defined benefit plan is a pension plan that defines an amount of pension benefit to be provided, usually as a function of one or more factors such as age, years of service or compensation.

Grup harus menyediakan imbalan pensiun dengan jumlah minimal sesuai dengan UU Ketenagakerjaan No. 13/2003 atau Kontrak Kerja Bersama (“KKB”), mana yang lebih tinggi. Karena UU Ketenagakerjaan atau KKB menentukan rumus tertentu untuk menghitung jumlah minimal imbalan pensiun, pada dasarnya program pensiun berdasarkan UU Ketenagakerjaan atau KKB adalah program pensiun imbalan pasti.

The Group is required to provide a minimum amount of pension benefits in accordance with Labour Law No. 13/2003 or the Group‟s Collective Labour Agreement (the “CLA”), whichever is higher. Since the Labour Law and the CLA set the formula for determining the minimum amount of benefits, in substance pension plans under the Labour Law or the CLA represent defined benefit plans.




IKHTISAR (lanjutan) q.

KEBIJAKAN

AKUNTANSI

PENTING

Imbalan karyawan (lanjutan) (i)

Kewajiban imbalan pasca masa kerja (lanjutan)


SUMMARY OF SIGNIFICANT POLICIES (continued) q.

ACCOUNTING

Employee benefits (continued) (i) Post-retirement (continued)

benefit

obligations

Kewajiban program pensiun imbalan pasti yang diakui di laporan posisi keuangan konsolidasian adalah nilai kini kewajiban imbalan pasti pada tanggal akhir periode dikurangi nilai wajar aset program, serta disesuaikan dengan keuntungan/kerugian aktuarial dan biaya jasa lalu yang belum diakui. Kewajiban imbalan pasti dihitung setiap tahun oleh aktuaris independen menggunakan metode projected unit credit. Nilai kini kewajiban imbalan pasti ditentukan dengan mendiskonto estimasi arus kas keluar masa depan menggunakan tingkat bunga obligasi pemerintah (dengan pertimbangan saat ini tidak ada pasar aktif untuk obligasi korporat berkualitas tinggi) dalam mata uang yang sama dengan mata uang imbalan yang akan dibayarkan dan waktu jatuh tempo yang kurang lebih sama dengan waktu jatuh tempo imbalan yang bersangkutan.

The liability recognised in the consolidated statements of financial position in respect of the defined benefit pension plan is the present value of the defined benefit obligation at the period end date less the fair value of plan assets, together with adjustments for unrecognised actuarial gains or losses and past service costs. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high quality government bonds (considering currently there is no deep market for high-quality corporate bonds) that are denominated in the currency in which the benefit will be paid, and that have terms to maturity approximating the terms of the related pension liability.

Keuntungan dan kerugian aktuarial dapat timbul dari penyesuaian yang dibuat berdasarkan pengalaman, perubahan asumsi-asumsi aktuarial, dan perubahan pada program pensiun. Apabila jumlah keuntungan atau kerugian aktuarial ini melebihi 10% dari imbalan pasti atau 10% dari nilai wajar aset program pada tanggal maka kelebihannya akhir periode, dibebankan atau dikreditkan sebagai pendapatan selama sisa masa kerja rata-rata para karyawan yang bersangkutan.

Actuarial gains and losses arising from experience adjustments, changes in actuarial assumptions and amendments to the pension plan. When exceeding 10% of the present value of the defined benefit or 10% of the fair value of the program‟s assets at period end date, are charged or credited to income over the average remaining service lives of the related employees.

(ii) Imbalan kerja jangka panjang lainnya Imbalan kerja jangka panjang lainnya, yang terdiri dari penghargaan masa kerja dan cuti berimbalan jangka panjang, diakui di laporan posisi keuangan konsolidasian berdasarkan nilai kini dari kewajiban imbalan pasti. Keuntungan dan kerugian aktuarial dan biaya jasa lalu diakui secara langsung di laporan laba rugi komprehensif konsolidasian.

(ii) Other long-term employee benefits Other long-term employee benefits, which consist of long service rewards and long leave benefits, are recognised in the consolidated statements of financial position at the present value of the defined benefit obligation. The related actuarial gains and losses and past service costs are recognised immediately in the consolidated statements of comprehensive income.



IKHTISAR (lanjutan) q.

KEBIJAKAN

AKUNTANSI

PENTING

Imbalan karyawan (lanjutan)


SUMMARY OF SIGNIFICANT POLICIES (continued) q.

(iii) Pesangon pemungutan kontrak kerja

s.

Hutang usaha dan lainnya

Termination benefits are payable whenever an employee‟s employment is terminated before the normal retirement date. The Group recognises termination benefits when it is demonstrably committed to terminate the employment of current employees according to a detailed formal plan with a low possibility of withdrawal. r.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Other payables are amounts due to third or related parties for transactions outside the ordinary course of business. Trade and other payables are classified as current liabilities if payment is due within one year or less. If not, they are presented as noncurrent liabilities.

Hutang usaha dan lainnya pada awalnya diakui sebesar nilai wajar dan kemudian diukur pada biaya diamortisasi dengan menggunakan metode bunga efektif.

Trade and other payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.

Modal saham

s.

Dividen

Laba per saham Laba bersih per saham dasar dihitung dengan membagi laba bersih dengan rata-rata tertimbang jumlah saham biasa yang beredar selama periode yang bersangkutan.


Share capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

t.

Dividend Dividend distributions to the Group‟s shareholders are recognised as a liability in the Group‟s consolidated financial statements in the period in which the dividends are declared.

Pembayaran dividen kepada pemegang saham Grup diakui sebagai liabilitas dalam laporan keuangan konsolidasian Grup dalam periode dimana pembagian dividen diumumkan. u.

Trade and other payables

Hutang usaha adalah kewajiban untuk membayar barang atau jasa yang diperoleh dari pemasok dalam kegiatan usaha normal. Hutang usaha lainnya berkaitan dengan transaksi pihak ketiga atau pihak berelasi di luar kegiatan usaha normal. Hutang usaha dan lainnya diklasifikasikan sebagai liabilitas jangka pendek bila pembayaran dilakukan dalam jangka waktu satu tahun atau kurang. Bila tidak, akan disajikan sebagai liabilitas jangka panjang.

Saham biasa diklasifikasikan sebagai ekuitas. Biaya secara langsung dapat tambahan yang diatribusikan kepada penerbitan saham baru atau opsi disajikan pada ekuitas sebagai pengurang penerimaaan, setelah dikurangi pajak. t.

Employee benefits (continued) (iii) Termination benefits

Pesangon pemutusan kontrak terhutang ketika karyawan dihentikan kontrak kerjanya sebelum usia pensiun normal. Grup mengakui pesangon pemutusan kontrak kerja ketika Grup menunjukkan komitmennya untuk memberhentikan kontrak kerja dengan karyawan berdasarkan suatu rencana formal terperinci yang kecil kemungkinan untuk dibatalkan. r.

ACCOUNTING

u.

Earnings per share Basic earnings per share is computed by dividing net income by the weighted-average number of ordinary shares outstanding during the period.



IKHTISAR (lanjutan) v.

KEBIJAKAN

AKUNTANSI

PENTING

Pelaporan segmen


SUMMARY OF SIGNIFICANT POLICIES (continued) v.

Segment reporting

Segmen operasi adalah suatu komponen dari entitas:

An operating segment is a component of an entity:

a. yang terlibat dalam aktivitas bisnis yang mana memperoleh pendapatan dan menimbulkan beban (termasuk pendapatan dan beban terkait dengan transaksi dengan komponen lain dari entitas yang sama); b. hasil operasinya dikaji ulang secara reguler oleh pengambil keputusan operasional untuk membuat keputusan tentang sumber daya yang dialokasikan pada segmen tersebut dan menilai kinerjanya; dan c. tersedia informasi keuangan yang dapat dipisahkan.

a. that engages in business activities from which it may earn revenues and incur expenses (including revenue and expenses related to transactions between different components within the same entity); b. whose operating results are regularly reviewed by the entity‟s chief operating decision-maker to make decisions about resources to be allocated to the segment and to assess its performance; and c. for which discrete financial information is available.

Grup melakukan segmentasi pelaporan berdasarkan informasi keuangan yang digunakan oleh pengambil keputusan operasional dalam mengevaluasi kinerja segmen dan menentukan alokasi sumber daya yang dimilikinya. Segmentasi berdasarkan aktivitas dari setiap kegiatan operasi entitas legal di dalam Grup. Seluruh transaksi antar segmen telah dieliminasi.

The Group segments its financial reporting based on the financial information used by the chief operating decision-maker in evaluating the performance of segments and in the allocation of resources. The segments are based on the activities of each of the operating legal entities within the Group. All transactions between segments have been eliminated.

w. Biaya emisi saham

w. Share issuance costs Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds.

Biaya-biaya yang secara langsung terkait dengan penerbitan saham baru disajikan pada bagian ekuitas sebagai pengurang, neto setelah pajak, dari jumlah yang diterima. x.

ACCOUNTING

Pembagian hasil produksi/iuran eksploitasi Grup mengakui penjualan atas bagian Pemerintah sebagai bagian dari pendapatan dari penjualan dan kewajiban pembayaran ke Pemerintahnya diakui dengan basis akrual sebagai beban royalti di bagian harga pokok penjualan. Iuran eksploitasi juga diakui dengan basis akrual.

x.

Sharing of production/exploitation fee The Group recognises the Government‟s share as part of sales revenue, and the obligation to make payment to the Government on an accrual basis as royalty expense as part of cost of goods sold. Exploitation fee is also recognised on accrual basis.



IKHTISAR (lanjutan) y.

KEBIJAKAN

AKUNTANSI

PENTING

Transaksi dengan pihak-pihak berelasi


SUMMARY OF SIGNIFICANT POLICIES (continued) y.

ACCOUNTING

Related party transactions

Pihak-pihak berelasi adalah orang atau entitas yang terkait dengan Grup:

Related party represents a person or an entity who is related to the Group:

(a) Orang atau anggota keluarga terdekat mempunyai relasi dengan Grup jika orang tersebut : (i) memiliki pengendalian atau pengendalian bersama atas Grup; (ii) memiliki pengaruh signifikan atas Grup; atau (iii) personil manajemen kunci Grup atau entitas induk Grup.

(a)

A person or a close member of the person‟s family is related to a Group if that person: (i) has control or joint control over the Group; (ii) has significant influence over the Group; or (iii) is a member of the key management personnel of the Group or of a parent of the Group.

(b) Suatu entitas berelasi dengan Grup jika memenuhi salah satu hal berikut: (i) Entitas dan Grup adalah anggota dari kelompok usaha yang sama (artinya entitas induk, entitas anak, dan entitas anak berikutnya terkait dengan entitas lain). (ii) Satu entitas adalah entitas asosiasi atau ventura bersama dari entitas lain (atau entitas asosiasi atau ventura bersama yang merupakan anggota suatu kelompok usaha, yang mana entitas lain tersebut adalah anggotanya). (iii) Kedua entitas tersebut adalah ventura bersama dari pihak ketiga yang sama. (iv) Satu entitas adalah ventura bersama dari entitas ketiga dan entitas yang lain adalah entitas asosiasi dari entitas ketiga. (v) Entitas tersebut adalah suatu program imbalan pascakerja untuk imbalan kerja dari salah satu entitas pelapor atau entitas yang terkait dengan Grup. Jika adalah entitas yang Grup menyelenggarakan program tersebut, maka entitas sponsor juga berelasi dengan Grup. yang dikendalikan atau (vi) Entitas dikendalikan bersama oleh orang yang diidentifikasi dalam huruf (a). (vii) Orang yang diidentifikasi dalam huruf (a)(i) memiliki pengaruh signifikan atas entitas atau personil manajemen kunci entitas (atau entitas induk dari entitas).

(b)

An entity is related to a Group if any of the following conditions applies: (i) The entity and the Group are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others).


(ii) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member). (iii) Both entities are joint ventures of the same third party. (iv) One entity is a joint venture of a third entity and the other entity is an associate of the third entity. (v) The entity is a post-employment benefit plan for the benefit of employees of either the Group or an entity related to the Group. If the Group is itself such a plan, the sponsoring employers are also related to the Group. (vi) The entity is controlled or jointly controlled by a person identified in (a). (vii) A person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity).



IKHTISAR (lanjutan) z.

KEBIJAKAN

AKUNTANSI

PENTING

Penggunaan estimasi


SUMMARY OF SIGNIFICANT POLICIES (continued) z.

ACCOUNTING

Use of estimates

Penyusunan laporan keuangan konsolidasian yang sesuai dengan prinsip akuntansi yang berlaku umum di Indonesia mengharuskan manajemen untuk membuat estimasi dan asumsi yang mempengaruhi jumlah aset dan kewajiban, pengungkapan nilai aset dan kewajiban kontinjen pada tanggal laporan keuangan konsolidasian, serta jumlah pendapatan dan beban-beban selama periode pelaporan. Estimasi, asumsi dan pertimbangan akan dievaluasi secara berkelanjutan dan didasarkan pada pengalaman masa lalu dan faktor-faktor lainnya, termasuk ekspektasi terhadap kejadian masa depan yang diyakini cukup beralasan dalam situasi tertentu.

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in Indonesia requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Estimates, assumptions and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Grup telah mengidentifikasi kebijakan-kebijakan akuntansi penting berikut yang melibatkan pertimbangan, estimasi dan asumsi yang signifikan di mana hasil yang sebenarnya dapat berbeda dari estimasi-estimasi yang dibuat berdasarkan asumsi dan kondisi yang berbeda pada saat itu dan kemungkinan dapat mempengaruhi hasil atau posisi keuangan secara material yang dilaporkan dalam periode mendatang.

The Group has identified the following critical accounting policies under which significant judgements, estimates and assumptions are made and where actual results may differ from these estimates under different assumptions and conditions and may materially affect financial results or the financial position reported in future periods.

Rincian lebih lanjut mengenai karakteristik atas asumsi-asumsi dan kondisi-kondisi tersebut dapat ditemukan dalam catatan laporan keuangan konsolidasian yang relevan.

Further details of the nature of these assumptions and conditions may be found in the relevant notes to the consolidated financial statements.

(i)

(i)

Estimasi cadangan Cadangan merupakan estimasi jumlah produk yang dapat diekstraksi secara ekonomis dan legal dari properti Grup. Grup menentukan dan melaporkan cadangan batubara berdasarkan prinsip-prinsip yang terkandung dalam the Code for Reporting of Mineral Resources and Ore Reserves (the “JORC Code”) of the Australasian Joint Ore Reserves Committee (“JORC”). Dalam memperkirakan cadangan batubara diperlukan beberapa asumsi seperti faktor geologi, teknis dan ekonomi, termasuk jumlah, teknik produksi, rasio pengupasan tanah, biaya produksi, biaya transportasi, permintaan komoditas, harga komoditas dan nilai tukar mata uang.

Reserve estimates Reserves are estimates of the amount of product that can be economically and legally extracted from the Group‟s properties. The Group determines and reports its coal reserves under the principles incorporated in the Code for Reporting of Mineral Resources and Ore Reserves (the “JORC Code”) of the Australasian Joint Ore Reserves Committee (“JORC”). In order to estimate coal reserves, assumptions are required about a range of geological, technical and economic factors, including quantities, production techniques, stripping ratio, production costs, transport costs, commodity demand, commodity prices and exchange rates.




KEBIJAKAN

AKUNTANSI

PENTING

Penggunaan estimasi (lanjutan) (i) Estimasi cadangan (lanjutan)



ACCOUNTING

Use of estimates (continued) (i)

Reserve estimates (continued)

Dalam memperkirakan jumlah dan/atau nilai kalori cadangan batubara memerlukan ukuran, bentuk dan kedalaman batubara atau lahan yang ditentukan dengan menganalisis data geologis seperti sampel pengeboran. Proses ini mungkin memerlukan pertimbangan geologis yang kompleks dan sulit dalam menginterpretasikan data.

Estimating the quantity and/or calorific value of coal reserves requires the size, shape and depth of coal bodies or fields to be determined by analysing geological data such as drilling samples. This process may require complex and difficult geological judgements to interpret the data.

Karena asumsi-asumsi ekonomi yang digunakan untuk membuat estimasi atas jumlah cadangan berubah dari waktu ke waktu dan karena data geologi tambahan yang dihasilkan selama periode operasi, maka jumlah estimasi cadangan dapat berubah dari waktu ke waktu. Perubahan cadangan yang dilaporkan dapat mempengaruhi hasil dan posisi keuangan Grup dalam berbagai bentuk, diantaranya:

Because the economic assumptions used to estimate reserves change from period to period, and because additional geological data is generated during the course of operations, estimates of reserves may change from period to period. Changes in reported reserves may affect the Group‟s financial results and financial position in a number of ways, including the following:

•

•

Asset carrying values may be affected due to changes in estimated future cash flows.

•

Depreciation, depletion and amortisation charged in the income statement may change where such charges are determined on a units of production basis, or where the useful economic lives of assets change. Overburden removal costs recorded in the statements of financial position or charged to the income statement may change due to changes in stripping ratios.

•

•

•

•

Nilai aset tercatat dapat terpengaruh akibat perubahan estimasi arus kas masa depan. Penyusutan, deplesi dan amortisasi yang dibebankan dalam laporan laba rugi dapat berubah jika biaya tersebut ditentukan berdasarkan basis satuan unit produksi, atau jika terdapat perubahan masa manfaat ekonomis aset. Biaya-biaya pemindahan pengupasan tanah yang tercatat di laporan posisi keuangan atau yang dibebankan pada laba rugi dapat berubah karena perubahan rasio pengupasan tanah. Pembongkaran, restorasi lokasi dan provisi lingkungan dapat berubah karena perubahan estimasi cadangan yang dapat mempengaruhi ekspektasi akan waktu atau biaya kegiatan-kegiatan tersebut. Nilai aset/kewajiban pajak tangguhan tercatat dapat berubah karena perubahan estimasi pemulihan manfaat pajak.


•

•

Decommissioning, site restoration and environmental provisions may change where changes in estimated reserves affect expectations about the timing or cost of these activities.

•

The carrying value of deferred tax assets/liabilities may change due to changes in estimates of the likely recovery of the tax benefits.




KEBIJAKAN

AKUNTANSI

PENTING

Penggunaan estimasi (lanjutan) (ii) Biaya pengupasan ditangguhkan



tanah

yang

ACCOUNTING

Use of estimates (continued) (ii) Deferred stripping costs

Biaya pengupasan tanah terjadi selama tahap Beberapa perusahaan produksi. pertambangan membebankan biaya pengupasan tanah pada saat terjadinya, sedangkan lainnya menangguhkan biaya pengupasan tersebut. Dalam operasi yang mengalami fluktuasi yang material dalam rasio tanah untuk bijih atau mineral yang berbasis selama umur tambang atau pit, penangguhan biaya pengupasan mengurangi volatilitas dari biaya pengupasan yang dibebankan pada periode pelaporan. Perusahaan pertambangan yang mengakui biaya saat terjadinya akan melaporkan volatilitas yang lebih besar dalam hasil operasinya dari waktu ke waktu.

Stripping of waste materials takes place throughout the production stage of the mine or pit. Some mining companies expense their production stage stripping costs as incurred, while others defer such stripping costs. In operations that experience material fluctuations in the ratio of waste materials to ore or contained minerals on a year to year basis over the life of the mine or pit, deferral of stripping costs reduces the volatility of the cost of stripping expensed in individual reporting periods. Those mining companies that expense stripping costs as incurred will therefore report greater volatility in the results of their operations from period to period.

Rasio perbandingan antara tanah dan bijih merupakan fungsi perencanaan tambang sehingga perubahan pada perencanaan tersebut akan menghasilkan perubahan terhadap rasio tersebut. Perubahan pada teknik atas parameter ekonomi lainnya yang mempengaruhi nilai cadangan juga akan berdampak pada umur tambang atau rasio pit bahkan jika hal tersebut tidak mempengaruhi perencanaan pit. Perubahan umur tambang atau rasio pit akan dicatat secara prospektif.

The life of mine or pit waste-to-ore ratio is a function of an individual mine‟s pit design and therefore changes to that design will generally result in changes to the ratio. Changes in other technical or economic parameters that have an impact on reserves will also have an impact on the life of mine or pit ratio even if they do not affect the pit design. Changes to the life of mine or pit ratio are accounted for prospectively.

Penentuan Grup mengenai apakah beberapa tambang dianggap merupakan operasi terpisah atau terintegrasi tergantung pada kondisi spesifik setiap tambang dan analisa yang membutuhkan pertimbangan; perusahaan lain dapat membuat penentuan terpisah atau terintegrasinya suatu tambang secara berbeda dari Grup, bahkan jika terdapat pola fakta yang sama. Jika penentuannya berbeda, maka hasil akuntansinya juga akan berbeda.

The Group‟s determination of whether multiple pit mines are considered separate or integrated operations depends on each mine‟s specific circumstances and the analysis requires judgement; another company could make the determination that a mine is separate or integrated differently than the Group, even if the fact pattern appears to be similar. To the extent the determination is different, the resulting accounting would also be different.


PT INDO TAMBANGRAYA MEGAH TBK. DAN ANAK PERUSAHAAN/AND SUBSIDIARIES Lampiran 5/32 Schedule CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2011 dan 2010 (Dinyatakan dalam ribuan Dolar AS, kecuali dinyatakan lain)


2.

2. SUMMARY OF SIGNIFICANT POLICIES (continued)


KEBIJAKAN

AKUNTANSI

PENTING

Penggunaan estimasi (lanjutan) (iii) Biaya eksplorasi Kebijakan akuntansi Grup untuk biaya eksplorasi menimbulkan adanya beberapa biaya yang dikapitalisasi untuk sebuah area of interest yang dianggap dapat dipulihkan oleh kegiatan eksploitasi di masa depan atau dijual atau di mana kegiatan belum mencapai tahap yang memperbolehkan penilaian yang wajar atas adanya cadangan. Kebijakan ini mengharuskan manajemen untuk membuat estimasi dan asumsi tertentu untuk peristiwa dan keadaan di masa depan, khususnya tentang apakah operasi ekstraksi yang ekonomis dapat dilaksanakan. Setiap perkiraan dan asumsi tersebut dapat berubah seiring tersedianya informasi baru. Jika setelah biaya dikapitalisasi berdasarkan kebijakan tidak menunjukkan adanya kemungkinan pemulihan biaya, biaya relevan yang dikapitalisasi tersebut akan dihapus dalam laporan laba rugi. (iv) Biaya pengembangan Kegiatan pengembangan dimulai setelah dilakukan pengesahan proyek oleh tingkat manajemen yang berwenang. Manajemen melakukan pertimbangan untuk menentukan kapan suatu proyek layak dikembangkan secara ekonomis. Dalam melaksanakan pertimbangan tersebut, manajemen perlu membuat estimasi dan asumsi tertentu seperti yang dijelaskan di atas untuk biaya eksplorasi dan evaluasi yang dikapitalisasi. Setiap estimasi dan asumsi tersebut dapat berubah seiring tersedianya informasi baru. Jika setelah memulai kegiatan pengembangan ada penilaian bahwa terdapat penurunan nilai biaya pengembangan, jumlah yang sesuai akan dihapus di dalam laporan laba rugi. (v) Penurunan nilai aset non-keuangan Sesuai dengan kebijakan akuntansi Grup, setiap aset atau unit penghasil kas dievaluasi setiap periode pelaporan untuk menentukan apakah ada indikasi penurunan nilai. Jika terdapat indikasi, estimasi jumlah yang dapat dipulihkan akan dilakukan dan kerugian penurunan nilai akan diakui sejauh jumlah tercatat melebihi jumlah yang dapat dipulihkan. Jumlah yang dapat diperoleh kembali dari sebuah aset atau kelompok aset penghasil kas diukur pada nilai wajar yang lebih tinggi dikurangi biaya untuk menjual dan nilai penggunaan.


z.

ACCOUNTING

Use of estimates (continued) (iii) Exploration expenditure The Group‟s accounting policy for exploration expenditure results in certain items of expenditure being capitalised for an area of interest where it is considered likely to be recoverable by future exploitation or sale or where the activities have not yet reached a stage which permits a reasonable assessment of the existence of reserves. This policy requires management to make certain estimates and assumptions as to future events and circumstances, in particular whether an economically viable extraction operation can be established. Any such estimates and assumptions may change as new information becomes available. If, after having capitalised the expenditure under the policy, a judgement is made that recovery of the expenditure is unlikely, the relevant capitalised amount will be written off to the income statement. (iv) Development expenditure Development activities commence after project sanctioning by the appropriate level of management. Judgement is applied by management in determining when a project is economically viable. In exercising this judgement, management is required to make certain estimates and assumptions similar to those described above for capitalised exploration and evaluation expenditure. Any such estimates and assumptions may change as new information becomes available. If, after having commenced the development activity, a judgement is made that a development asset is impaired, the appropriate amount will be written off to the income statement. (v) Impairment of non-financial assets In accordance with the Group‟s accounting policy, each asset or cash generating unit is evaluated every reporting period to determine whether there are any indications of impairment. If any such indication exists, a formal estimate of recoverable amount is performed and an impairment loss recognised to the extent that the carrying amount exceeds the recoverable amount. The recoverable amount of an asset or cash generating group of assets is measured at the higher of fair value less costs to sell and value in use.




2.



KEBIJAKAN

AKUNTANSI

PENTING

Penggunaan estimasi (lanjutan) (v) Penurunan (lanjutan)

nilai

aset

z. non-keuangan

Penentuan nilai wajar dan nilai yang digunakan mengharuskan manajemen untuk membuat estimasi dan asumsi tentang ekspektasi produksi dan volume penjualan, harga komoditas (mempertimbangkan harga saat ini dan masa lalu, tren harga dan faktorfaktor terkait), cadangan (lihat 'Estimasi cadangan' di atas), biaya operasi, biaya penutupan dan rehabilitasi serta belanja modal di masa depan. Estimasi dan asumsi ini memiliki risiko dan ketidakpastian; sehingga ada kemungkinan bahwa perubahan situasi akan mengubah proyeksi ini, yang selanjutnya dapat mempengaruhi jumlah aset yang dapat dipulihkan. Dalam keadaan seperti itu, beberapa atau semua aset mungkin akan mengalami penurunan nilai atau biaya penurunan nilai dikurangi dengan dampak yang dicatat dalam laporan laba rugi. (vi) Penyisihan untuk penutupan rehabilitasi tambang Kebijakan akuntansi Grup untuk pengakuan nilai penutupan dan rehabilitasi tambang membutuhkan estimasi dan asumsi yang signifikan seperti: persyaratan hukum dan regulasi yang relevan; besarnya kemungkinan lahan terganggu serta waktu, cakupan dan biaya yang dibutuhkan untuk kegiatan penutupan dan rehabilitasi. Ketidakpastian ini dapat menimbulkan perbedaan jumlah biaya aktual dari yang dicadangkan saat ini. Pencadangan yang diakui untuk setiap lokasi secara berkala ditinjau dan diperbarui berdasarkan faktafakta dan keadaan pada saat itu.

ACCOUNTING

Use of estimates (continued) (v) Impairment (continued)

of

non-financial

assets

The determination of fair value and value in use requires management to make estimates and assumptions about expected production and sales volumes, commodity prices (considering current and historical prices, price trends and related factors), reserves (see „Reserve estimates‟ above), operating costs, closure and rehabilitation costs and future capital expenditure. These estimates and assumptions are subject to risk and uncertainty; hence there is a possibility that changes in circumstances will alter these projections, which may have an impact on the recoverable amount of the assets. In such circumstances, some or all of the carrying value of the assets may be further impaired or the impairment charge reduced with the impact recorded in the income statement.

(vi) Provision for mine rehabilitation The Group‟s accounting policy for the recognition of closure and rehabilitation provisions requires significant estimates and assumptions such as: requirements of the relevant legal and regulatory framework; the magnitude of possible land disturbance and the timing, extent and costs of required closure and rehabilitation activity. These uncertainties may result in future actual expenditure differing from the amounts currently provided. The provision recognised for each site is periodically reviewed and updated based on the facts and circumstances available at the time.




2.



KEBIJAKAN

AKUNTANSI

PENTING

Penggunaan estimasi (lanjutan)

z.

(vii) Pajak penghasilan

ACCOUNTING

Use of estimates (continued) (vii) Income taxes

Pertimbangan dan asumsi diperlukan dalam menentukan penyisihan modal dan pengurangan biaya tertentu selama estimasi penyisihan pajak penghasilan untuk setiap perusahaan dalam Grup. Terdapat banyak transaksi dan perhitungan dimana penentuan pajak akhir menjadi tidak pasti selama kegiatan usaha normal. Dimana perhitungan pajak akhir dari hal-hal tersebut berbeda dengan jumlah yang sebelumnya dicatat, perbedaan tersebut akan berdampak pada penetapan pajak penghasilan dan pajak penghasilan yang ditangguhkan dalam periode penentuan pajak tersebut.

Judgement and assumptions are required in determining the capital allowances and deductibility of certain expenses during the estimation of the provision for income taxes for each company within the Group. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred income tax provisions in the period in which such determination is made.

Aset pajak tangguhan, termasuk yang timbul dari kerugian pajak yang dapat dikompensasikan kembali, penyisihan modal, dan perbedaan temporer diakui hanya ketika hal-hal tersebut diperhitungkan untuk dapat dipulihkan, yang tergantung pada pembentukan laba kena pajak yang mencukupi di masa depan. Asumsi pembentukan laba kena pajak di masa depan tergantung pada estimasi manajemen untuk arus kas di masa depan. Hal ini tergantung pada estimasi produksi, jumlah penjualan barang atau jasa, harga komoditas, cadangan, biaya operasi, biaya penutupan tambang dan rehabilitasi, belanja modal, dividen dan transaksi manajemen modal lainnya di masa depan.

Deferred tax assets, including those arising from unrecouped tax losses, capital allowances and temporary differences, are recognised only where it is considered more likely than not that they will be recovered, which is dependent on the generation of sufficient future taxable profits. Assumptions about the generation of future taxable profits depend on management‟s estimates of future cash flows. These depend on estimates of future production, sales volumes or sales of service, commodity prices, reserves, operating costs, closure and rehabilitation costs, capital expenditure, dividends and other capital management transactions.

(viii)Nilai wajar derivatif keuangan lainnya

dan

instrumen

Nilai wajar dari instrumen keuangan yang tidak diperdagangkan dalam pasar aktif (contoh: over-the-counter derivative) ditentukan dengan menggunakan teknik valuasi. Grup menggunakan pertimbangan ini untuk memilih variasi metode-metode dan menggunakan asumsi-asumsi yang pada hakikatnya berdasarkan pada kondisi pasar yang ada pada akhir periode pelaporan tersebut. Grup telah menggunakan analisis discounted cash flow untuk berbagai derivatif yang tidak diperdagangkan pada pasar aktif.


(viii) Fair value of derivatives financial instruments

and

other

The fair value of financial instruments that are not traded in an active market (for example: over-the-counter derivatives) is determined by using valuation techniques. The Group uses its judgement to select a variety of methods and makes assumptions that are mainly based on market conditions existing at the end of each reporting period. The Group has used discounted cash flow analysis for various derivatives that are not traded in active markets.



KAS DAN SETARA KAS


2010

2011 Kas: - Rupiah - Dolar AS Jumlah kas

CASH AND CASH EQUIVALENTS

996 736

788 76

Cash on hand: Rupiah US Dollars -

1,732

864

Total cash on hand

Kas di bank: Rupiah - Standard Chartered Bank - PT Bank Central Asia Tbk. - Citibank N.A. - Bank-bank lain

1,705 735 673 426

667 1,245 1,790 1,202

Cash in banks: Rupiah Standard Chartered Bank PT Bank Central Asia Tbk. Citibank N. A. Other banks -

Jumlah rekening Rupiah

3,539

4,904

Total Rupiah accounts

35,816 13,023 11,040

25,873 9,492 2,277

268

269

133 664

6,079 996

US Dollars Standard Chartered Bank PT Bank Central Asia Tbk. Citibank N.A. Bangkok Bank Public Company Limited (Singapore branch) Bangkok Bank Public Company Limited (Jakarta branch) Other banks -

60,944

44,986

Total US Dollar accounts

Euro - Standard Chartered Bank

229

2,500

Euro Standard Chartered Bank -

Jumlah rekening Euro

229

2,500

Total Euro accounts

64,712

52,390

Total cash in banks

Dolar AS - Standard Chartered Bank - PT Bank Central Asia Tbk. - Citibank N.A. - Bangkok Bank Public Company Limited (cabang Singapura) - Bangkok Bank Public Company Limited (cabang Jakarta) - Bank-bank lain Jumlah rekening Dolar AS

Jumlah kas di bank Deposito Berjangka: Rupiah - PT Bank Mandiri (Persero) Tbk. - The Hongkong and Shanghai Banking Corporation, Ltd. - Standard Chartered Bank - PT Bank DBS Indonesia - PT Bank Permata Tbk. - PT Bank CIMB Niaga Tbk. - Citibank N.A.

38,142

26,570

11,165 8,306 7,892 7,108 2,269 -

1,121 9,540 2,514 1,891

Time Deposits: Rupiah PT Bank Mandiri (Persero) Tbk. The Hongkong and Shanghai Banking Corporation, Ltd. Standard Chartered Bank PT Bank DBS Indonesia PT Bank Permata Tbk. PT Bank CIMB Niaga Tbk. Citibank N.A -

Jumlah rekening Rupiah

74,882

41,636

Total Rupiah accounts



KAS DAN SETARA KAS (lanjutan)


2010

2011 Dolar AS - Standard Chartered Bank (cabang Jakarta) - PT ANZ Panin Bank - DBS Bank, Ltd. - PT Bank Permata Tbk. - The Hongkong and Shanghai Bangking Corporation, Ltd. - PT Bank CIMB Niaga Tbk. - PT Bank ICBC Indonesia - Standard Chartered Bank (cabang Singapura) - PT Bank Central Asia Tbk. - Bangkok Bank Public Company Limited (cabang Jakarta) - PT Bank Mandiri (Persero) Tbk.

CASH AND CASH EQUIVALENTS (continued)

213,276 85,783 50,241 43,394

15,070 34,863 30,062 34,128

23,075 20,173 20,000

45,422 -

15,148 -

20,060

-

15,064 5,010

US Dollars Standard Chartered Bank (Jakarta branch) PT ANZ Panin Bank DBS Bank, Ltd. PT Bank Permata Tbk. The Hongkong and Shanghai Banking Corporation, Ltd. PT Bank CIMB Niaga Tbk. PT Bank ICBC Indonesia Standard Chartered Bank (Singapore branch) PT Bank Central Asia Tbk. Bangkok Bank Public Company Limited (Jakarta branch) PT Bank Mandiri (Persero) Tbk. -

Jumlah rekening Dolar AS

471,090

199,679

Total US Dollar accounts

Jumlah deposito berjangka

545,972

241,315

Total time deposits

Jumlah kas dan setara kas

612,416

294,569

Total cash and cash equivalents

Tingkat bunga rata-rata deposito berjangka diatas adalah sebagai berikut: 2011 Rupiah Dolar AS


6.25% - 7.35% 0.55% - 3.00%

The above time deposits earned interest at average annual rates as follows: 2010 5.85% - 7.15% 0.30% - 2.00%

Rupiah US Dollars



PIUTANG USAHA


2010

2011 Pihak ketiga: Dolar AS - Formosa Plastic Group - Shenhua Coal Trading Co. - Adani Global Pte., Ltd. - Chubu Energy Trading INC. - Udupi Power Corporation Ltd. - San Miguel Energy Corporation - TNB Fuel Services Sdn. Bhd. - Sumitomo Coal Mining Co., Ltd. - CLP Fangghen - Korea Southen Power Co., Ltd. - Guangdong Power Industry Fuel Co., Ltd. - China National Minerals Co., Ltd. - Tirreno Power S.P.A. - Korea Western Power Co., Ltd. - Enel Trade SpA - Sumiseki Trading - Taiwan Power Company - Korea East West Power Co., Ltd. - Korea South East Power Co., Ltd. - Shinsho Corporation - Dongguan City Minsheng Energy Co., Ltd. - Lain-lain (masing-masing di bawah US$5.000)

Rupiah - PT PLN - Tanjung Jati B - PT Sumber Segara Primadaya

Pihak-pihak berelasi: Dolar AS - Chiang Muan Mining Co. Ltd. - Banpu Public Company Limited - Banpu International Limited Dikurangi: Penyisihan atas penurunan nilai Piutang usaha - bersih Umur piutang usaha adalah sebagai berikut: Lancar Lewat jatuh tempo: - antara 1 sampai 30 hari - antara 31 sampai 60 hari - antara 61 sampai 90 hari - lebih dari 90 hari

TRADE RECEIVABLES

18,310 18,027 12,845 10,750 9,471 8,813 8,020 7,443 7,429 7,252

7,162 5,573 6,175 6,132 -

6,998 6,770 6,769 6,632 5,822 2,026 -

3,683 18,179 6,989 13,296 10,707 6,131 5,896

-

5,161

Third parties: US Dollars Formosa Plastic Group Shenhua Coal Trading Co. Adani Global Pte., Ltd. Chubu Energy Trading INC. Udupi Power Corporation Ltd. San Miguel Energy Corporation TNB Fuel Services Sdn. Bhd. Sumitomo Coal Mining Co., Ltd. CLP Fangghen Korea Southen Power Co. Ltd. Guangdong Power Industry Fuel Co., Ltd. China National Minerals Co., Ltd. Tirreno Power S.P.A. Korea Western Power Co., Ltd. Enel Trade SpA Sumiseki Trading Taiwan Power Company Korea East West Power Co., Ltd. Korea South East Power Co., Ltd. Shinsho Corporation Dongguan City Minsheng Energy Co., Ltd.

4,902

16,413

Others (each below US$5,000) -

148,279

111,497

41,591 12,386

6,422

53,977

6,422

202,256

117,919

4,562 4,380 -

3,143

8,942

3,143

-

-

211,198

121,062

165,086

86,539

44,205 1,847 60

34,523 -

211,198

121,062

Rupiah PT PLN - Tanjung Jati B PT Sumber Segara Primadaya -

Related parties: US Dollars Chiang Muan Mining Co. Ltd. Banpu Public Company Limited Banpu International Limited Less: Provision for impairment Trade receivables - net The aging of trade receivables is as follows: Current Overdue: 1 to 30 days 31 to 60 days 61 to 90 days over 90 days -



5.

PIUTANG USAHA (lanjutan)


TRADE RECEIVABLES (continued)

Berdasarkan telaah atas status dari masing-masing akun piutang usaha pada akhir tahun, manajemen Grup berpendapat bahwa seluruh piutang usaha dapat ditagih secara penuh sehingga tidak diperlukan penyisihan atas penurunan nilai.

Based on a review of the status of the individual receivable accounts at the end of the year, the Group‟s management is of the opinion that these receivables will be collected in full and therefore a provision for impairment is not considered necessary.

Lihat Catatan 22 untuk rincian transaksi dengan pihakpihak berelasi.

Refer to Note 22 for details of related party transactions.

PERSEDIAAN

5.

2010

2011 Batubara Suku cadang dan bahan-bahan pendukung

INVENTORIES

84,400

57,478

Coal

25,455

14,727

Stores and consumable supplies

109,855

72,205

Dikurangi: Penyisihan untuk suku cadang dan bahan-bahan pendukung usang

(1,672)

(2,884) 106,971

Mutasi penyisihan untuk suku cadang dan bahan-bahan pendukung usang adalah sebagai berikut: 2011

Less: Provision for obsolete stores and consumable supplies

70,533 Movement in provision for obsolete consumable supplies is as follows:

stores

and

2010

Saldo awal Penambahan

1,672 1,212

1,476 196

Beginning balance Additions

Saldo akhir

2,884

1,672

Ending balance

Manajemen berpendapat bahwa penyisihan untuk suku cadang dan bahan-bahan pendukung usang cukup untuk menutup kemungkinan kerugian dari persediaan usang tersebut.

Management believes that the provision for obsolete stores and consumable supplies is adequate to cover possible losses from obsolete stock.

Pada tanggal 31 Desember 2011, persediaan suku cadang dan bahan-bahan pendukung diasuransikan terhadap combined property all risks, kerusakan mesinmesin, dan gangguan usaha sebesar US$13.142 (2010: US$11.642). Manajemen Grup berpendapat bahwa persediaan pada tanggal 31 Desember 2011 telah diasuransikan secara memadai.

As at 31 December 2011, the stores and consumable supplies were insured under a combined property all risks, machinery breakdown and business interruption insurance policy amounting to US$13,142 (2010: US$11,642). The Group‟s management believes that the inventories as at 31 December 2011 have adequately insured.




PERPAJAKAN a.


Pajak dibayar dimuka

a.

Prepaid taxes 2010

2011 Perusahaan PPN Kelebihan pembayaran pajak penghasilan - 2011 - 2010 - 2009 - 2008 - 2007

TAXATION

822

152

1,685 703 2,455 2,620 259

703 2,455 2,620 259

8,544

6,189

8,838

5,386

46,164 -

46,164 12,268

55,002

63,818

Bagian lancar

63,546 (9,332)

70,007 (70,007)

Bagian tidak lancar

54,214

Anak Perusahaan PPN Kelebihan pembayaran pajak penghasilan - 2010 - 2009

-

The Company VAT Overpayment of corporate income tax 2011 2010 2009 2008 2007 -

Subsidiaries VAT Overpayment of corporate income tax 2010 2009 -

Current portion Non-current portion



PERPAJAKAN (lanjutan) b.


Hutang pajak

TAXATION (continued) b.

2011 Perusahaan Pajak Penghasilan - pasal 21 Pajak Penghasilan - pasal 23/26 Pajak Penghasilan - pasal 4(2) PPN

Anak Perusahaan Pajak Penghasilan Badan Pajak Penghasilan - pasal 21 Pajak Penghasilan - pasal 23/26 Pajak Penghasilan - pasal 15 Pajak Penghasilan - pasal 4(2) PPN

c.

2010 1,676 32 17 440

1,034 10 -

2,165

1,044

99,114 5,353 1,198 174 55 1,253

5,556 2,845 2,143 176 75 1,924

107,147

12,719

109,312

13,763

Beban pajak penghasilan

c. 2011

Perusahaan - Kini - Tangguhan

Anak Perusahaan - Kini - Tangguhan

Konsolidasian - Kini - Tangguhan


Taxes payable

The Company Income tax - article 21 Income tax - articles 23/26 Income tax - articles 4(2) VAT

Subsidiaries Corporate income tax Income tax - article 21 Income tax - articles 23/26 Income tax - article 15 Income tax - article 4(2) VAT

Income tax expense 2010

354 (181)

1,107 (130)

173

977

184,428 (789)

71,780 446

183,639

72,226

184,782 (970)

72,887 316

183,812

73,203

The Company Current Deferred -

Subsidiaries Current Deferred -

Consolidated Current Deferred -



PERPAJAKAN (lanjutan) c.


Beban pajak penghasilan (lanjutan)

c.

2011

Laba sebelum pajak penghasilan - Perusahaan Pajak penghasilan dihitung dengan tarif pajak 25% Pendapatan yang tidak diperhitungkan untuk keperluan pajak Pendapatan bunga yang dikenakan pajak final Beban yang tidak dapat dikurangkan untuk keperluan pajak Perbedaan temporer: Sewa pembiayaan Penyisihan imbalan karyawan

Income tax expense (continued) The calculation of current corporate income tax expense is as follows:

Perhitungan beban pajak penghasilan kini adalah sebagai berikut:

Laba sebelum pajak konsolidasian Ditambah/(dikurangi): Eliminasi konsolidasian Laba sebelum pajakanak perusahaan

TAXATION (continued)

2010

729,938 382,267 (724,698)

277,354 Consolidated profit before income tax Add/(deduct): 283,101 Consolidation eliminations Profit before income tax(277,988) subsidiaries

387,507

282,467

Profit before income tax - the Company

96,876

70,617

Income tax at 25%

(95,745)

(69,995)

Non-assessable income

(1,246)

(791)

Interest income subject to final tax

540

1,147

17

-

(88)

129

Non-deductible expenses Temporary differences: Finance leases Provision for employee benefits

Beban pajak penghasilan kini Perusahaan Beban pajak penghasilan kini anak perusahaan

354

1,107

184,428

71,780

Current corporate income tax expense - the Company Current corporate income tax expense - subsidiaries

Beban pajak penghasilan kini konsolidasian

184,782

72,887

Consolidated current corporate income tax expense

Dikurangi: pajak dibayar di muka - Perusahaan - Anak perusahaan

(2,039) (85,314)

(1,810) (112,388)

Less: prepaid taxes The Company Subsidiaries -

(41,311)

Corporate income tax payable /(overpayment of corporate income tax)

Hutang pajak penghasilan badan /(kelebihan pembayaran pajak penghasilan)

97,429





6.


TAXATION (continued) c.

Income tax expense (continued)

Perhitungan pajak penghasilan kini dilakukan berdasarkan estimasi penghasilan kena pajak. Nilai tersebut mungkin disesuaikan ketika SPT Tahunan disampaikan ke Direktorat Jenderal Pajak (“DJP”).

Current income tax computations are based on estimated taxable income. The amounts may be adjusted when annual tax returns are filed with the Directorate General of Tax (“DGT”).

Rekonsiliasi antara beban pajak penghasilan dengan jumlah teoritis beban pajak penghasilan yang dihitung berdasarkan laba sebelum pajak penghasilan Grup dengan menggunakan tarif pajak yang berlaku adalah sebagai berikut:

The reconciliation between income tax expense and the theoretical tax amount on the Group‟s profit before income tax using applicable tax rate is as follows:

2011 Laba sebelum pajak konsolidasian Ditambah/(dikurangi): Eliminasi konsolidasian Laba sebelum pajakanak perusahaan Laba sebelum pajak penghasilan - Perusahaan Pajak penghasilan dihitung dengan tarif pajak 25% Pendapatan yang tidak diperhitungkan untuk keperluan pajak Pendapatan bunga yang dikenakan pajak final Beban yang tidak dapat dikurangkan untuk keperluan pajak Amortisasi properti pertambangan Pengakuan aset pajak tangguhan yang sebelumnya tidak diakui

2010

729,938 382,267 (724,698)

277,354

Consolidated profit before income tax Add/(deduct): 283,101 Consolidation eliminations Profit before income tax(277,988) subsidiaries

387,507

282,467

Profit before income tax - the Company

96,876

70,617

Income tax at 25%

(95,745)

(69,995)

Non-assessable income

(1,246)

(791)

Interest income subject to final tax

540 (182)

1,147 (130)

(70)

129

Non-deductible expenses Amortisation of mining properties Recognition of previously unrecognised deferred tax assets

Beban pajak penghasilan Perusahaan Beban pajak penghasilan anak perusahaan

173

977

183,639

72,226

Corporate income tax expense - the Company Corporate income tax expense - subsidiaries

Beban pajak penghasilan konsolidasian

183,812

73,203

Consolidated corporate income tax expense







TAXATION (continued) c.

Income tax expense (continued)

Grup telah mengakumulasi kerugian fiskal yang dapat dipakai sebagai pengurang penghasilan kena pajak di masa mendatang selama lima sampai delapan tahun sebagaimana ditetapkan dalam PKP2B masing-masing anak perusahaan dan peraturan pajak yang berlaku.

The Group has accumulated corporate income tax losses which are available to be carried forward and offset against future taxable income for periods of five to eight years as specified in each subsidiary‟s CCA and applicable tax regulations.

Rugi fiskal yang dapat dikompensasikan dengan penghasilan kena pajak di masa mendatang terjadi di tahun pajak berikut:

Tax losses carried-forward which can be offset against future taxable income were incurred in the following fiscal years:

Perusahaan/Company 31 Desember/December 2008

5,770 5,770

Anak Perusahaan/Subsidiaries 31 Desember/December 2004 31 Desember/December 2005 31 Desember/December 2006 31 Desember/December 2007 31 Desember/December 2008 31 Desember/December 2009 31 Desember/December 2010 31 Desember/December 2011

235 83 101 87 254 53 10,871 1,056 12,740

d.

Aset pajak tangguhan

d.

2010

2011 Perusahaan Penyisihan imbalan karyawan Rugi fiskal yang dibawa ke masa depan Aset pajak tangguhan yang tidak diakui Aset pajak tangguhan, bersih

Deferred tax assets

555

643

The Company Provision for employee benefits

1,443

1,443

Tax losses carried forward

(1,998)

(2,086)

-

-

Unrecognised deferred tax assets Deferred tax assets, net

Aset pajak tangguhan pada awal tahun Dibebankan pada laporan laba rugi komprehensif konsolidasian

-

-

-

-

Deferred tax assets at the beginning of the year Charged to consolidated statements of comprehensive income

Aset pajak tangguhan pada akhir tahun

-

-

Deferred tax assets at the end of the year



PERPAJAKAN (lanjutan)


d. Aset pajak tangguhan (lanjutan)

TAXATION (continued) d.

Deferred tax assets (continued) 2010

2011 Anak Perusahaan Perbedaan nilai buku aset tetap komersial dan fiskal Penyisihan imbalan karyawan Penyisihan untuk royalti Penyisihan untuk rehabilitasi tambang Penyisihan untuk persediaan usang Amortisasi biaya eksplorasi yang ditangguhkan Penyisihan untuk pembongkaran, pemindahan dan restorasi Penyisihan penurunan nilai aset tetap Rugi fiskal yang dibawa ke masa depan Aset pajak tangguhan yang tidak diakui Aset pajak tangguhan, bersih Aset pajak tangguhan pada awal tahun Dikreditkan/(dibebankan) pada laporan laba rugi komprehensif konsolidasian Aset pajak tangguhan pada akhir tahun


Subsidiaries Difference between commercial and tax net book value of fixed assets Provision for employee benefits Provision for royalty

13,198 1,277 -

6,223 2,161 809

2,070 513

2,803 418

-

238

485

1,468

44

44

Provision for mine rehabilitation Provision for obsolete stock Amortisation of deferred exploration expenditures Provision for decommissioning, demobilisation and restoration Provision for impairment of fixed assets

3,185

2,921


(5,228)

(4,592)

15,544

12,493

12,493

12,939

3,051 15,544

(446) 12,493

Unrecognised deferred tax assets Deferred tax assets, net Deferred tax assets at the beginning of the year Credited/(charged) to consolidated statements of comprehensive income Deferred tax assets at the end of the year



PERPAJAKAN (lanjutan) d.


Aset pajak tangguhan (lanjutan)

TAXATION (continued) d.

2011

Deferred tax assets (continued) 2010

Konsolidasian Perbedaan nilai buku aset tetap komersial dan fiskal Penyisihan imbalan karyawan Penyisihan untuk royalti Penyisihan untuk rehabilitasi tambang Penyisihan untuk persediaan usang Amortisasi biaya eksplorasi yang ditangguhkan Penyisihan untuk pembongkaran, pemindahan dan restorasi Penyisihan penurunan nilai aset tetap Rugi fiskal yang dibawa ke masa depan Aset pajak tangguhan yang tidak diakui Aset pajak tangguhan, bersih Aset pajak tangguhan pada awal tahun Dikreditkan/(dibebankan) pada laporan laba rugi komprehensif konsolidasian Aset pajak tangguhan pada akhir tahun

13,198 1,832 2,070 513

6,223 2,804 809 2,803 418

-

238

485

1,468

44

44

Consolidated Difference between commercial and tax net book value of fixed assets Provision for employee benefits Provision for royalty Provision for mine rehabilitation Provision for obsolete stock Amortisation of deferred exploration expenditures Provision for decommissioning, demobilisation and restoration Provision for impairment of fixed assets

4,628

4,364


(7,226)

(6,678)

15,544

12,493

Deferred tax assets, net

12,493

12,939

Deferred tax assets at the beginning of the year

3,051 15,544

(446) 12,493

Unrecognised deferred tax assets

Credited/(charged) to consolidated statements of comprehensive income Deferred tax assets at the end of the year



PERPAJAKAN (lanjutan) e.


Liabilitas pajak tangguhan

TAXATION (continued) e.

Deferred tax liabilities 2010

2011 Perusahaan Properti pertambangan

5,839

6,021

The Company Mining properties

Liabilitas pajak tangguhan, bersih

5,839

6,021

Deferred tax liabilities, net

6,021

6,151

Liabilitas pajak tangguhan pada awal tahun Dikreditkan pada laporan laba rugi komprehensif konsolidasian Liabilitas pajak tangguhan pada akhir tahun Anak Perusahaan Perbedaan nilai buku aset tetap komersial dan fiskal Penyisihan imbalan karyawan Amortisasi biaya eksplorasi yang ditangguhkan Penyisihan untuk rehabilitasi tambang Penyisihan untuk persediaan usang Penyisihan untuk pembongkaran, pemindahan dan restorasi Penyisihan untuk royalti Liabilitas pajak tangguhan, bersih

(181) 5,840

(130) 6,021

Deferred tax liabilities at the beginning of the year Credited to consolidated statements of comprehensive income Deferred tax liabilities at the end of the year Subsidiaries Difference between commercial and tax net book value of fixed assets Provision for employee benefits Amortisation of deferred exploration expenditures

7,480 (1,524)

-

(268)

-

(1,600) (208)

-

(1,164) (454)

-

Provision for mine rehabilitation Provision for obsolete stock Provision for decommissioning, demobilisation and restoration Provision for royalties

2,262

-


Liabilitas pajak tangguhan pada awal tahun Dibebankan pada laporan laba rugi komprehensif konsolidasian

-

-

2,262

-

Deferred tax liabilities at the beginning of the year Charged to consolidated statements of comprehensive income

Liabilitas pajak tangguhan pada akhir tahun

2,262

-

Deferred tax liabilities at the end of the year





PERPAJAKAN (lanjutan) e.

6.

Liabilitas pajak tangguhan (lanjutan)

TAXATION (continued) e.

2011 Konsolidasian Properti pertambangan Perbedaan nilai buku aset tetap komersial dan fiskal Penyisihan imbalan karyawan Amortisasi biaya eksplorasi yang ditangguhkan Penyisihan untuk rehabilitasi tambang Penyisihan untuk persediaan usang Penyisihan untuk pembongkaran, pemindahan dan restorasi Penyisihan untuk royalti Liabilitas pajak tangguhan, bersih Liabilitas pajak tangguhan pada awal tahun Dibebankan/(dikreditkan) pada laporan laba rugi komprehensif konsolidasian Liabilitas pajak tangguhan pada akhir tahun

2010 5,840

6,021

Consolidated Mining properties Difference between commercial and tax net book value of fixed assets Provision for employee benefits Amortisation of deferred exploration expenditure

7,480 (1,524)

-

(268)

-

(1,600) (208)

-

(1,164) (454)

-

Provision for mine rehabilitation Provision for obsolete stock Provision for decommissioning, demobilisation and restoration Provision for royalties

8,102

6,021


6,021

6,151 (130)

2,081 8,102

6,021

Audit Pajak Pada bulan April 2010, DJP menyelesaikan audit pajak untuk tahun fiskal 2008. Perusahaan setuju dengan tambahan beban sejumlah US$3.509 yang diperhitungkan oleh DJP, dan telah dibebankan ke laporan laba rugi komprehensif konsolidasian. Perusahaan tidak setuju dengan tambahan beban sejumlah US$16.999 yang diperhitungkan oleh DJP dan telah memasukkan surat keberatan. Pada bulan Juli 2011, DJP menolak surat keberatan Perusahaan dan Perusahaan telah mengajukan banding ke pengadilan pajak. Perusahaan berkeyakinan bahwa hasil akhir dari proses banding tersebut tidak akan memiliki dampak yang merugikan terhadap posisi laporan keuangan dan arus kas Perusahaan secara material.

Deferred tax liabilities at the beginning of the year Charged/(credited) to consolidated statements of comprehensive income Deferred tax liabilities at the end of the year

All of the Group‟s deferred tax assets and liabilities will be recovered after more than 12 months.

Semua aset dan liabilitas pajak tangguhan Grup akan dipulihkan dalam periode setelah 12 bulan. f.

Deferred tax liabilities (continued)

f.

Tax audits In April 2010, the DGT completed a tax audit for fiscal year 2008. The Company agreed with US$3,509 of the amounts assessed by the DGT, which were expensed to consolidated statements of comprehensive income. The Company disagreed with US$16,999 of the amounts assessed by the DGT and has filed objection letters. In July 2011, the DGT rejected the Company‟s objection letters and the Company have submitted an appeal to the tax court for this case. The Company believes that the final resolution of this appeal will not have a material adverse impact on the Company‟s financial position and cash flows.



PERPAJAKAN (lanjutan) f.

Audit Pajak (lanjutan)


TAXATION (continued) f.

As at 31 December 2011, the Company, KTD, TCM, IMM, JBG and Bharinto were being audited by the DGT for fiscal years ranging from 2006 to 2010 for various taxes. The Group believes that the results of these audits will not have a material adverse impact on the Group‟s financial position and cash flows.

Pada tanggal 31 Desember 2011, Perusahaan, KTD, TCM, IMM JBG dan Bharinto sedang dalam proses audit berbagai jenis pajak untuk tahun 2006 sampai dengan 2010 oleh DJP. Grup berpendapat bahwa hasil audit tersebut tidak akan memiliki dampak yang merugikan terhadap posisi keuangan dan arus kas Grup secara material. g.

Administrasi pajak di Indonesia Undang-undang Perpajakan yang berlaku di Indonesia mengatur bahwa masing-masing entitas dalam Grup menghitung, menetapkan dan membayar sendiri besarnya jumlah pajak yang terutang secara individu. Berdasarkan peraturan perundang-undangan yang berlaku, DJP dapat menetapkan atau mengubah jumlah pajak terutang dalam jangka waktu tertentu. Untuk tahun pajak 2007 dan sebelumnya, jangka waktu tersebut adalah sepuluh tahun sejak saat terutangnya pajak tetapi tidak lebih dari tahun 2013, sedangkan untuk tahun pajak 2008 dan seterusnya, jangka waktunya adalah lima tahun sejak saat terutangnya pajak.


Tax audits (continued)

g.

Tax administration in Indonesia The taxation laws of Indonesia require that each company in the Group within Indonesia submits individual tax returns on the basis of self asessment. Under prevailing regulations the DGT may assess or amend taxes within a certain period. For the fiscal years of 2007 and before, this period is within ten years of the time the tax become due, but not later than 2013, while for the fiscal years of 2008 and onwards, the period is within five years of the time the tax becomes due.



ASET TETAP

7. Saldo awal/ Opening balance (1 Januari/ January 2011)

Harga perolehan Hak atas tanah dan pematangan tanah Bangunan Infrastruktur Pabrik, mesin dan peralatan Perabotan dan perlengkapan kantor Kendaraan Aset dalam penyelesaian Sewa pembiayaan: Kendaraan Akumulasi penyusutan Hak atas tanah dan pematangan tanah Bangunan Infrastruktur Pabrik, mesin dan peralatan Perabotan dan perlengkapan kantor Kendaraan Sewa pembiayaan: Kendaraan Penyisihan penurunan nilai Pabrik, mesin dan peralatan Nilai buku bersih

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 AND 2010 (Expressed in thousand US Dollars, unless otherwise stated) FIXED ASSETS

2011

Saldo Pemindahan akhir/ dan Ending reklasifikasi/ balance (31 Transfers Desember/ Penambahan/ Pengurangan/ and December Additions Disposals reclassifications 2011)

5,880 43,548 174,056

58 137

(90) (585) -

5,090 376

5,790 48,111 174,569

357,010

16,540

(806)

31,675

404,419

12,667 2,397 595,558

2,488 321 19,544

(495) (225) (2,201)

33 579 37,753

14,693 3,072 650,654

34,957

29,927

(1,600)

(37,174)

26,110

579 631,094

49,471

(3,801)

(579) -

676,764

5,880 22,690 71,318

6,362 14,522

(90) (548) -

-

172,993

28,933

(702)

-

7,762 1,406 282,049

1,476 327 51,620

(461) (216) (2,017)

579 579

579 282,628

51,620

(2,017)

(579) -

176

-

348,290

-

-

Acquisition cost Land rights and land improvements Buildings Infrastructure Plant, machinery and equipment Office furniture and fixtures Vehicles Construction in progress Under finance leases: Vehicles

Accumulated depreciation Land rights and land 5,790 improvements 28,504 Buildings 85,840 Infrastructure Plant, machinery and 201,224 equipment Office furniture and 8,777 fixtures 2,096 Vehicles 332,231 Under finance leases: Vehicles 332,231 Provision for impairment Plant, machinery and 176 equipment 344,357

Net book value



ASET TETAP (lanjutan)

7. Saldo awal/ Opening balance (1 Januari/ January 2010)

Harga perolehan Hak atas tanah dan pematangan tanah Bangunan Infrastruktur Pabrik, mesin dan peralatan Perabotan dan perlengkapan kantor Kendaraan Aset dalam penyelesaian Sewa pembiayaan: Kendaraan Akumulasi penyusutan Hak atas tanah dan pematangan tanah Bangunan Infrastruktur Pabrik, mesin dan peralatan Perabotan dan perlengkapan kantor Kendaraan Sewa pembiayaan: Kendaraan Penyisihan penurunan nilai Pabrik, mesin dan peralatan Nilai buku bersih

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 AND 2010 (Expressed in thousand US Dollars, unless otherwise stated) FIXED ASSETS (continued)

2010 Pemindahan dan reklasifikasi/ Transfers Penambahan/ Pengurangan/ and Additions Disposals reclassifications

Saldo akhir/ Ending balance (31 Desember/ December 2010)

5,883 33,556 135,827

132 608

(3) (328) (272)

10,188 37,893

5,880 43,548 174,056

260,042

13,421

(4,857)

88,404

357,010

10,250 1,904 447,462

3,148 633 17,942

(841) (140) (6,441)

110 136,595

12,667 2,397 595,558

137,980

37,679

(4,107)

(136,595)

34,957

579 586,021

55,621

(10,548)

-

5,513 17,905 58,361

370 5,005 13,071

(3) (220) (114)

-

151,467

25,955

(4,429)

-

7,247 1,269 241,762

1,337 277 46,015

(822) (140) (5,728)

-

568 242,330

11 46,026

(5,728)

-

176

-

343,515

Hak atas tanah Grup memiliki masa manfaat tersisa selama lima tahun.


-

-

579 631,094

Acquisition cost Land rights and land improvements Buildings Infrastructure Plant, machinery and equipment Office furniture and fixtures Vehicles Construction in progress Under finance leases: Vehicles

Accumulated depreciation Land rights and land 5,880 improvements 22,690 Buildings 71,318 Infrastructure Plant, machinery and 172,993 equipment Office furniture and 7,762 fixtures 1,406 Vehicles 282,049 Under finance leases: 579 Vehicles 282,628 Provision for impairment Plant, machinery and 176 equipment 348,290

Net book value

The Group‟s land rights have remaining useful lives of five years.





7.

FIXED ASSETS (continued)

Penambahan biaya penarikan aset hingga 31 Desember 2011 adalah US$658 (2010: US$1.515).

Additional asset retirement costs recognised as at 31 December 2011 were US$658 (2010: US$1,515).

Pada tanggal 31 Desember 2011, seluruh aset tetap milik IMM, KTD, JBG, TCM, Bharinto dan Perusahaan telah diasuransikan atas property all risks, kerusakan mesin, gangguan usaha, kerusakan yang material, kewajiban umum komprehensif, kewajiban operasi terminal dan kerusakan atas peralatan dan kendaraan sampai dengan US$631.488 (2010: US$630.903). Manajemen berpendapat bahwa seluruh aset tetap pada tanggal 31 Desember 2011 telah diasuransikan secara memadai.

As at 31 December 2011, the fixed assets of IMM, KTD, JBG, TCM, Bharinto and the Company were insured for property all risk, machinery breakdown, business interruption, material damage, comprehensive general liability, terminal operations liability, mobile and equipment damage amounting to US$631,488 (2010: US$630,903). Management believes that fixed assets at 31 December 2011 were adequately insured.

Pelepasan aset tetap untuk tahun yang berakhir pada 31 Desember 2011 dan 2010 adalah sebagai berikut:

Disposals of fixed assets for the years ended 31 December 2011 and 2010 were as follows: 2010

2011 Kas yang diterima dari pelepasan aset tetap Nilai buku aset tetap yang dilepas yang dicatat sebagai aset tidak lancar lain-lain Nilai buku aset tetap yang dilepas

(1,784)

(4,820)

Proceeds from disposals of fixed assets Book value of disposed fixed asset which was recorded in other non-current assets Book value of disposed fixed assets

(879)

(4,488)

Loss on disposals of fixed assets

1,857

(952)

Kerugian atas pelepasan aset tetap

Biaya penyusutan yang dibebankan untuk tahun yang berakhir pada 31 Desember 2011 dan 2010 adalah sebagai berikut: 2011 Harga pokok penjualan Biaya pengupasan tanah yang ditangguhkan

332

-

Depreciation expenses for the years ended December 2011 and 2010 were charged as follows:

31

2010

46,332

43,243

Cost of goods sold

4,014

-

881

2,719

383 10

46 18

Deferred stripping costs General and administration expenses Deferred exploration and development expenditures Selling expenses

51,620

46,026

Beban umum dan administrasi Biaya eksplorasi dan pengembangan yang ditangguhkan Beban penjualan

Pada tahun 2010, aset dalam penyelesaian sebesar US$4.107 yang berkaitan dengan proyek penambangan bawah tanah di blok Barat di IMM dihapuskan karena Grup telah memutuskan bahwa proyek tersebut tidak ekonomis untuk dikembangkan.

In 2010, construction in progress of US$4,107 relating to the underground mining project at IMM‟s West block was written-off as the Group concluded that the project is not economic to be developed.






Aset dalam penyelesaian

Construction in progress

Aset dalam penyelesaian merupakan proyek yang masih belum selesai pada akhir tahun dan mencakup biaya pinjaman yang dapat dikapitalisasi sebagai berikut:

Construction in progress represents projects that have not been completed at the year end, and includes borrowing costs that are eligible for capitalisation as follows:

Aset dalam penyelesaian yang belum selesai pada akhir tahun

Persentase penyelesaian/ Percentage of completion

Jalan angkut batubara dan jembatan Perak TCM

76%

Lain-lain (masingmasing di bawah 10% dari nilai aset dalam penyelesaian)

5% - 95%

31 Desember/December 2011 Estimasi tanggal Akumulasi biaya/ penyelesaian/ Accumulated Estimated completion costs date

17,891

8,219

April/April 2012 Januari/January 2012 Desember/December 2012

Construction in progress that has not been completed at the year end

Coal hauling road and Perak bridge - TCM Others (each below 10% of construction in progress)

26,110

Aset dalam penyelesaian yang belum selesai pada akhir tahun

Persentase penyelesaian/ Percentage of completion

31 Desember/December 2010 Estimasi tanggal Akumulasi biaya/ penyelesaian/ Accumulated Estimated completion costs date

Construction in progress that has not been completed at the year end Coal hauling road - TCM

Jalan angkut batubara TCM

78%

10,597

Februari/February 2012

Alat penghancur batubara - Bharinto

42%

3,614

Juni/June 2011

20,746

Januari/January 2011 Juni/June 2011

Lain-lain (masingmasing di bawah 10% dari nilai aset dalam penyelesaian)

7%-95%

34,957


Crusher - Bharinto Others (each below 10% of construction in progress)





Borrowing costs capitalised by the Group for the year ended 31 December 2011 and 2010 were nil and US$1,030, respectively. The average capitalisation rate for the year ended 31 December 2010 was 0.45%.

Kapitalisasi biaya pinjaman oleh Grup untuk tahun yang berakhir pada 31 Desember 2011 dan 2010 adalah nihil dan US$1.030. Tingkat kapitalisasi rata-rata selama tahun yang berakhir pada 31 Desember 2010 adalah 0,45%. 8.

BIAYA PENGUPASAN DITANGGUHKAN

TANAH

YANG


8.

2011

DEFERRED STRIPPING COSTS 2010

IMM - Blok Timur - Blok Barat

5,910 14,935

3,829 6,488

IMM East Block West Block -

JBG - Blok Tengah

18,772

29,280

JBG Central Block -

TCM - Blok Selatan - Blok Utara

14,833 6,901

5,356 4,356

TCM South Block North Block -

KTD - Embalut - Tandung Mayang

898 23,905

1,428 -

KTD Embalut Tandung Mayang -

86,154

50,737

Bagian lancar Bagian tidak lancar

(67,382) 18,772

-

Current portion

50,737

Non current portion

Di IMM, TCM dan KTD, biaya pengupasan tanah yang ditangguhkan merupakan biaya yang terjadi untuk memindahkan tanah yang belum menghasilkan batubara.

In IMM, TCM and KTD, the deferred stripping costs represent costs incurred for removal of overburden without exposing the coal.

Di JBG, biaya pengupasan tanah yang ditangguhkan merupakan kelebihan rasio pengupasan tanah atas estimasi rasio pengupasan rata-rata selama umur tambang.

In JBG, the deferred stripping costs represent the excess stripping ratio over the estimated average life of mine stripping ratio.

Rasio pengupasan rata-rata aktual untuk pit J1 di Blok Tengah JBG selama tahun 2011 adalah 5,46:1 (2010: 5,72:1). Estimasi rasio pengupasan rata-rata selama umur tambang untuk pit J1 JBG adalah 8,61:1 (2010: 6,88:1) berdasarkan rencana pengelolaan tambang saat ini.

The actual average stripping ratio for JBG‟s J1 pit in Central Block in respect of the year ended 31 December 2011 was 5.46:1 (2010: 5.72:1). The estimated life of mine average stripping ratio for JBG‟s J1 pit is 8.61:1 (2010: 6.88:1) based on management‟s current mine plan.




BIAYA EKSPLORASI DAN PENGEMBANGAN YANG DITANGGUHKAN Saldo awal/ Beginning balance (1 Januari/ January 2011) Nilai perolehan Area yang telah ditemukan cadangan terbukti IMM - Blok Timur - Blok Barat TCM - Blok Selatan - Blok Utara KTD - Embalut - Tandung Mayang JBG - Blok Tengah Bharinto Biaya eksplorasi dan pengembangan yang ditangguhkan yang tidak dapat dihubungkan dengan area tertentu: TCM

TCM - Blok Selatan - Blok Utara KTD - Embalut - Tandung Mayang JBG - Blok Tengah Biaya eksplorasi dan pengembangan yang ditangguhkan yang tidak dapat dihubungkan dengan area tertentu: TCM

Nilai buku bersih

DEFERRED EXPLORATION AND DEVELOPMENT EXPENDITURES

2011

Penambahan/ Additions


Pelepasan/ Disposals

Acquisition cost Areas with proven reserves IMM East Block West Block -

2,158 6,757 8,915

2,225 2,225

-

4,383 6,757 11,140

14,342 15,585 29,927

165 227 392

-

14,507 15,812 30,319

20,196 190 20,386

12,223 12,223

-

32,419 190 32,609

6,814 6,814

-

-

6,814 6,814

12,377

5,935

-

18,312

78,419

20,775

-

99,194

16,512

-

-

16,512

Deferred exploration and development expenditure which cannot be identified to be related to a specific area of interest: TCM Areas which have not yet found proven reserves Others

Area yang belum ditemukan cadangan terbukti Lain-lain

Akumulasi amortisasi IMM - Blok Timur - Blok Barat

9.

51

-

-

51

94,982

20,775

-

115,757

182 6,702 6,884

238 55 293

-

420 6,757 7,177

1,458 14,844 16,302

1,988 533 2,521

-

3,446 15,377 18,823

6,721 6,721

6,546 44 6,590

-

13,267 44 13,311

5,588 5,588

415 415

-

6,003 6,003

16,512

-

-

16,512

52,007

9,819

-

61,826

42,975


53,931

TCM South Block North Block KTD Embalut Tandung Mayang JBG Central Block Bharinto

Accumulated amortisation IMM East Block West Block TCM South Block North Block KTD Embalut Tandung Mayang JBG Central Block Deferred exploration and development expenditure which cannot be identified to be related to a specific area of interest: TCM

Net book value




BIAYA EKSPLORASI DAN PENGEMBANGAN YANG DITANGGUHKAN (lanjutan)

9.

DEFERRED EXPLORATION AND DEVELOPMENT EXPENDITURES (continued)

2010 Saldo awal/ Beginning balance (1 Januari/ January 2010) Nilai perolehan Area yang telah ditemukan cadangan terbukti IMM - Blok Timur - Blok Barat TCM - Blok Selatan - Blok Utara KTD - Embalut - Tandung Mayang JBG - Blok Tengah Bharinto Biaya eksplorasi dan pengembangan yang ditangguhkan yang tidak dapat dihubungkan dengan area tertentu: TCM Area yang belum ditemukan cadangan terbukti Lain-lain Akumulasi amortisasi IMM - Blok Timur - Blok Barat TCM - Blok Selatan - Blok Utara KTD - Embalut JBG - Blok Tengah Biaya eksplorasi dan pengembangan yang ditangguhkan yang tidak dapat dihubungkan dengan area tertentu: TCM Nilai buku bersih

Penambahan/ Additions


Pelepasan/ Disposals

2,013 23,414 25,427

145 4,045 4,190

11,986 14,662 26,648

2,356 923 3,279

-

14,342 15,585 29,927

20,187 190 20,377

9 9

-

20,196 190 20,386

6,565 6,565

249 249

-

6,814 6,814

10,381

1,996

-

12,377

89,398

9,723

16,512

-

(20,702) (20,702)

(20,702)

-

2,158 6,757 8,915

TCM South Block North Block KTD Embalut Tandung Mayang JBG Central Block Bharinto

78,419

16,512

Deferred exploration and development expenditure which cannot be identified to be related to a specific area of interest: TCM Areas which have not yet found proven reserves Others

300

-

(249)

51

106,210

9,723

(20,951)

94,982

54 6,702 6,756

128 128

-

182 6,702 6,884

365 14,662 15,027

1,093 182 1,275

-

1,458 14,844 16,302

1,666 1,666

5,055 5,055

-

6,721 6,721

5,257 5,257

331 331

-

5,588 5,588

16,512

-

-

16,512

45,218

6,789

-

52,007

60,992

Acquisition cost Areas with proven reserves IMM East Block West Block -

42,975

Accumulated amortisation IMM East Block West Block TCM South Block North Block KTD Embalut JBG Central Block Deferred exploration and development expenditure which cannot be identified to be related to a specific area of interest: TCM Net book value



BIAYA EKSPLORASI DAN PENGEMBANGAN YANG DITANGGUHKAN (lanjutan)


DEFERRED EXPLORATION AND DEVELOPMENT EXPENDITURES (continued)

Pada tahun 2010, biaya eksplorasi dan pengembangan yang ditangguhkan sebesar US$20.702 yang berkaitan dengan proyek penambangan bawah tanah di blok Barat di IMM dihapuskan karena Grup telah memutuskan bahwa proyek tersebut tidak ekonomis untuk dikembangkan.

In 2010, deferred exploration and development expenditures of US$20,702 relating to the underground mining project at IMM‟s West block were written-off as the Group concluded that the project is not economic to be developed.

Pemulihan biaya eksplorasi yang ditangguhkan bergantung pada keberhasilan pengembangan dan eksploitasi komersial atau penjualan area of interest tersebut.

Ultimate recoupment of exploration expenditure carried forward is dependent upon successful development and commercial exploitation, or alternatively, sale of the respective area of interest.

10. PROPERTI PERTAMBANGAN

10. MINING PROPERTIES 2010

2011 Properti pertambangan Penambahan

30,349 -

30,349 -

Akumulasi amortisasi

30,349 (6,993)

30,349 (6,266)

Nilai buku bersih

23,356

24,083

Komposisi hutang usaha berdasarkan mata uang adalah sebagai berikut: - Dolar AS - Rupiah


Net book value

11. TRADE PAYABLES 2011

Pihak ketiga: - PT Pamapersada Nusantara - PT Borneo Alam Semesta - PT Mitra Alam Persada - Lain-lain (masing-masing dibawah US$3.000)

Accumulated amortisation

The balance represents the cost of mining properties arising from the acquisition of ownership in TCM, Bharinto and JBG. The balance arose from the fair valuation of the assets acquired at the date of acquisition.

Saldo di atas merupakan biaya untuk properti pertambangan yang timbul karena akuisisi kepemilikan atas TCM, Bharinto dan JBG. Saldo tersebut timbul akibat penilaian wajar atas aset-aset yang diperoleh pada tanggal akuisisi. 11. HUTANG USAHA

Mining properties Additions

2010

119,426 9,318 4,970

77,664 3,271 3,601

12,705

10,247

146,419

94,783

146,048 371

94,466 317

146,419

94,783

Third parties: PT Pamapersada Nusantara PT Borneo Alam Semesta PT Mitra Alam Persada Others (each below US$3,000)

Trade payables composition based on currency is as follows: US Dollars Rupiah -


PT INDO TAMBANGRAYA MEGAH TBK. DAN ANAK PERUSAHAAN/AND SUBSIDIARIES Lampiran 5/57 Schedule CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2011 dan 2010 (Dinyatakan dalam ribuan Dolar AS, kecuali dinyatakan lain) 11. HUTANG USAHA (lanjutan)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 AND 2010 (Expressed in thousand US Dollars, unless otherwise stated) 11. TRADE PAYABLES (continued) These balances arose from purchase of spare parts, mining services and other services.

Saldo tersebut diatas timbul dari pembelian suku cadang, jasa penambangan dan jasa lain-lain. 2011 Rincian umur hutang usaha dari tanggal faktur adalah sebagai berikut: - < 30 hari - 30 sampai 90 hari - > 90 hari

2010

146,419 -

94,783 -

146,419

94,783

12. BEBAN YANG MASIH HARUS DIBAYAR

12. ACCRUED EXPENSES 2011

Iuran kehutanan Royalti/iuran eksploitasi Sewa peralatan, kapal, ponton dan kendaraan Bonus kinerja karyawan Biaya bahan bakar Biaya kelebihan waktu berlabuh/ denda keterlambatan kapal Bahan peledak Kewajiban pasar domestik Kontraktor Lain-lain (masing-masing di bawah US$3.000)

Details of aging of trade payables from invoice date is as follows: < 30 days 30 to 90 days > 90 days -

2010

36,414 32,566

36,130 19,795

17,502 16,670 15,245

8,375 13,922 9,301

Forestry fee Royalty/exploitation fee Equipment, vessel, pontoon and vehicle rental Employee performance bonuses Fuel purchasing

12,574 10,730 6,612 2,447

16,405 7,305 9,131

Despatch/demurrage Explosives Domestic market obligation Contractors

37,816

29,766

Others (each below US$3,000)

188,576

150,130

13. MODAL SAHAM

13. SHARE CAPITAL

Struktur pemegang saham Perusahaan pada tanggal 31 Desember 2011 dan 2010 adalah sebagai berikut:

The Company‟s shareholders as at 31 December 2011 and 2010 were as follows:

2011 Saham diterbitkan dan disetor penuh/ Issued and paid up capital Jumlah Nilai saham/ (Rp juta)/ Number of Value Setara US$/ shares (Rp million) US$ equivalent Banpu Minerals (Singapore) Pte. Ltd. Somyot Ruchirawat (Direktur Utama/ President Director) Ir. Lukmanul Hakim, MM (Komisaris/ Commissioner) Rudijanto Boentoro (Komisaris/Commissioner) Hartono Widjaja (Direktur/Director) Masyarakat/Public

%

734,452,000

367,226

41,530

65.00

105,000

52

5

0.01

9,500 5,000 82,000 395,271,500

5 2 41 197,636

1 8 22,348

0.01 34.98

1,129,925,000

564,962

63,892

100.00


PT INDO TAMBANGRAYA MEGAH TBK. DAN ANAK PERUSAHAAN/AND SUBSIDIARIES Lampiran 5/58 Schedule CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2011 dan 2010 (Dinyatakan dalam ribuan Dolar AS, kecuali dinyatakan lain) 13. MODAL SAHAM (lanjutan)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 AND 2010 (Expressed in thousand US Dollars, unless otherwise stated) 13. SHARE CAPITAL (continued)

2010 Saham diterbitkan dan disetor penuh/ Issued and paid up capital Jumlah Nilai saham/ (Rp juta)/ Number of Value Setara US$/ shares (Rp million) US$ equivalent Banpu Minerals (Singapore) Pte. Ltd. Somyot Ruchirawat (Direktur Utama/ President Director) Ir. Lukmanul Hakim, MM (Komisaris/ Commissioner) Rudijanto Boentoro (Komisaris/Commissioner) Masyarakat/Public

734,452,000

367,226

41,530

65.00

40,000

20

2

0.01

9,500 5,000 395,418,500

5 2 197,709

1 22,359

34.99

1,129,925,000

564,962

63,892

100.00

14. PREMI SAHAM

14. SHARE PREMIUM 2011

Premi saham Biaya emisi saham

2010

354,935 (10,737)

354,935 (10,737)

344,198

344,198

Biaya emisi saham merupakan biaya-biaya yang berkaitan langsung dengan penerbitan saham baru Perusahaan yang dilakukan saat Penawaran Umum Perdana pada 18 Desember 2007. 15. SALDO LABA YANG TELAH DICADANGKAN Berdasarkan Rapat Umum Pemegang Saham Tahunan pada tanggal 28 Maret 2011 dan 29 Maret 2010, Perusahaan membentuk tambahan cadangan wajib masing-masing sebesar US$2.000 dan US$1.987 sehingga total cadangan wajib Perusahaan menjadi sebesar US$5.000 (2010: US$3.000). Hal ini sesuai Perseroan Terbatas dengan Undang-Undang No. 40/2007 yang diterbitkan pada bulan Agustus 2007, yang mengharuskan setiap perusahaan untuk membentuk cadangan minimum 20% dari modal yang telah ditempatkan dan disetor penuh. Tidak ada batasan waktu tertentu untuk membentuk cadangan tersebut.


%

Share premium Share issuance costs

Share issuance costs represent costs directly attributable to the issuance of new shares of the Company during the Initial Public Offering on 18 December 2007.

15. APPROPRIATED RETAINED EARNINGS Based on the Annual General Meetings of Shareholders on 28 March 2011 and 29 March 2010, the Company appropriated a further US$2,000 and US$1,987, respectively, to its statutory reserve to total US$5,000 (2010: US$3,000). This is in accordance with Indonesian Limited Company Law No.40/2007 introduced in August 2007 which requires companies to set up a reserve amounting to a minimum 20% of a company‟s issued and paid up capital. There is no set period of time over which this amount should be accumulated.


PT INDO TAMBANGRAYA MEGAH TBK. DAN ANAK PERUSAHAAN/AND SUBSIDIARIES Lampiran 5/59 Schedule CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2011 dan 2010 (Dinyatakan dalam ribuan Dolar AS, kecuali dinyatakan lain) 16. DIVIDEN

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 AND 2010 (Expressed in thousand US Dollars, unless otherwise stated) 16. DIVIDENDS Based on the Annual General Meetings of Shareholders on 28 March 2011 and 29 March 2010, and circular resolutions in lieu of Board of Directors meetings in December 2011, the Company declared dividends as follows:

Berdasarkan Rapat Umum Pemegang Saham Tahunan pada tanggal 28 Maret 2011 dan 29 Maret 2010, serta hasil dari resolusi pola bergilir sebagai pengganti rapat Dewan Direksi di bulan Desember 2011, Perusahaan mengumumkan pembagian dividen sebagai berikut: Periode/Period Pengumuman dividen pada tahun 2010 yang berhubungan dengan laba bersih tahun 2009/Dividend declaration in 2010 relating to 2009 net income Pengumuman dividen pada tahun 2010 yang berhubungan dengan laba bersih tahun 2010/Declaration in 2010 relating to 2010 net income Pengumuman dividen pada tahun 2011 yang berhubungan dengan laba bersih tahun 2010/Dividend declaration in 2011 relating to 2010 net income Pengumuman dividen pada tahun 2011 yang berhubungan dengan laba bersih tahun 2011/Dividend declaration in 2011 relating to 2011 net income 17. PENJUALAN

Nilai/Amount

Jasa - Pihak ketiga Jumlah penjualan

US$155,944

US$0.14

US$100,055

US$0.09

US$52,550

US$0.05

US$153,873

US$0.14

17. SALES 2011

Batubara - Pihak ketiga - Pihak-pihak berelasi

Per saham (nilai penuh)/ Per share (full amount)

2010

2,250,097 120,377

1,605,776 28,887

Coal Third parties Related parties -

11,401

9,987

Services Third parties -

2,381,875

1,644,650

Total sales

Selama tahun yang berakhir pada 31 Desember 2011 dan 2010 tidak ada pelanggan yang mempunyai transaksi lebih dari 10% atas penjualan bersih.

For the years ended 31 December 2011 and 2010 there was no customer with transactions representing more than 10% of net sales.

Lihat Catatan 22 untuk rincian transaksi dengan pihakpihak berelasi.

Refer to Note 22 for details of related party transactions.


PT INDO TAMBANGRAYA MEGAH TBK. DAN ANAK PERUSAHAAN/AND SUBSIDIARIES Lampiran 5/60 Schedule CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2011 dan 2010 (Dinyatakan dalam ribuan Dolar AS, kecuali dinyatakan lain) 18. HARGA POKOK PENJUALAN

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 AND 2010 (Expressed in thousand US Dollars, unless otherwise stated) 18. COST OF GOODS SOLD 2010

2011 Biaya produksi: Biaya penambangan Perawatan dan pemeliharaan Penyusutan Gaji dan tunjangan Bahan bakar dan minyak Sewa peralatan Iuran kehutanan Amortisasi biaya eksplorasi dan pengembangan yang ditangguhkan Revegetasi Tunjangan makan dan minum Biaya konsultan Penyisihan untuk rehabilitasi tambang Lain-lain (kurang dari US$3.000) Total biaya produksi Royalti/iuran eksploitasi Transportasi batubara Kenaikan persediaan batubara

Harga pokok penjualan

832,908 70,125 46,332 42,975 41,345 23,511 14,198 9,819

586,863 71,339 43,243 39,255 40,566 23,863 15,012 6,789

6,525 4,606 4,293 3,471 27,639

1,379 3,742 5,049 3,052 18,270

Production costs: Mining costs Repairs and maintenance Depreciation Salaries and allowances Fuel and oil Equipment rental Forestry fee Amortisation of deferred exploration and development expenditure Revegetation Meal and drinks allowances Consultants fees Provision for mine rehabilitation Others (less than US$3,000)

1,127,747

858,422

Total production costs

300,178 88,804 (26,922)

203,941 72,598 (8,364)

362,060

268,175

1,489,807

1,126,597

2010

2011 746,177

19. BEBAN PENJUALAN


Third party: PT Pamapersada Nusantara

452,436

19. SELLING EXPENSES 2011

Bahan bakar dan minyak Biaya angkut Penanganan batubara Komisi Sewa kapal Beban pemuatan batubara Survey dan analisis sampel Gaji dan tunjangan Lain-lain (kurang dari US$1.500)

Cost of goods sold

Details of suppliers having transactions more than 10% of total purchases of goods and services for production activities:

Rincian pemasok yang memiliki transaksi lebih dari 10% dari jumlah pembelian barang dan jasa untuk produksi:

Pihak ketiga: PT Pamapersada Nusantara

Royalty/exploitation fee Coal transportation Increase in coal inventories

2010

24,035 17,581 15,818 14,075 10,294 5,818 4,990 2,607 4,156

16,190 13,655 15,899 10,740 5,176 6,689 2,759 2,255 2,481

99,374

75,844

Fuel and oil Freight cost Coal handling Commissions Ship rental Vessel wrapping Draft survey and sampling analysis Sallary and allowances Others (less than US$1,500)




20. BEBAN UMUM DAN ADMINISTRASI

20. GENERAL AND ADMINISTRATION EXPENSES 2011

Jasa profesional dan manajemen Standby fees yang dibayarkan ke kontraktor JBG Gaji dan tunjangan Transportasi dan perjalanan Sewa kantor Pos dan telekomunikasi Penyusutan Perbaikan dan pemeliharaan Lain-lain (kurang dari US$500)

2010

53,737

42,769

14,245 2,580 1,492 1,352 881 170 11,322

7,715 13,776 1,905 1,105 1,809 2,719 840 6,663

85,779

79,301 Refer to Note 22 for details of related party transactions.

Lihat Catatan 22 untuk rincian transaksi dengan pihakpihak berelasi. 21. INSTRUMEN DERIVATIF

21. DERIVATIVE INSTRUMENTS 2011

Piutang derivatif - Kontrak swap batubara - Kontrak swap batubara - lindung nilai arus kas - Kontrak forward pembelian Rupiah - Kontrak swap bahan bakar minyak

Liabilitas derivatif - Kontrak swap bahan bakar minyak - Kontrak forward pembelian Rupiah - Kontrak swap batubara - Kontrak swap batubara - lindung nilai arus kas

a.

Professional and management fees Standby fees paid to JBG contractors Salaries and allowances Transportation and travelling Office rental Postage and telecommunications Depreciation Repairs and maintanance Others (less than US$500)

2010

20,740

-

5,463 245 -

51 18,174

26,448

18,225

908 541 -

97 48,849

-

14,614

1,449

63,560

Transaksi Swap Batubara IMM melakukan perikatan kontrak harga swap batubara dengan berbagai institusi keuangan untuk melakukan lindung nilai atas harga jual batubara di masa mendatang. Kontrak tersebut akan jatuh tempo dalam waktu dua tahun. Harga yang digunakan adalah harga pasar indeks batubara API 4 dan Newcastle.

a.

Derivative receivables Coal swap contracts Coal swap contracts - cash flow hedge Rupiah forward buy contracts Fuel swap contracts -

Derivative liabilities Fuel swap contracts Rupiah forward buy contracts Coal swap contracts Coal swap contracts - cash flow hedge

Coal Swap Transactions IMM entered into coal price swap contracts with various financial institutions to hedge future sales prices. Such contracts are due within two years. The underlying pricing is the market price specified by the API 4 and Newcastle coal indices.




21. INSTRUMEN DERIVATIF (lanjutan) a.

21. DERIVATIVE INSTRUMENTS (continued)

Transaksi Swap Batubara (lanjutan)

a.

Transaksi swap batubara yang masih berlaku pada tanggal 31 Desember 2011 adalah sebagai berikut:

Mitra transaksi/ Counter parties Societe Generale

Harga yang disepakati (jual) nilai penuh/ Deal price (sell) full amount US$124.50US$128.50/MT

Standard Chartered Bank Barclays Bank PLC

US$111.00US$125.85/MT US$105.00US$129.20/MT

BNP Paribas

US$115.00/MT

ANZ Investment Bank Mizuho Corporate Bank Bank of Tokyo Mitsubishi UFJ, Ltd.

US$103.00US$126.25/MT US$110.50US$123.50/MT US$110.20US$128.20/MT

Jumlah nosional (jual)/Total notional amounts (sell) (MT)


Jumlah nosional (beli)/Total notional amounts (buy) (MT)

180,000

-

-

375,000

-

-

1,020,000

-

-

30,000

-

-

1,488,000

-

-

135,000

-

-

522,000

-

-

were

Tanggal jatuh tempo/ Maturity date Januari/January - Desember/ December 2012 Januari/January - Desember/ December 2012 Januari/January - Desember/ December 2012 Januari/January - Maret/ March 2012 Januari/January - Desember/ December 2012 Januari/January - Desember/ December 2012 Januari/January - Desember/ December 2012

Movement in cash flow hedging reserve is as follows: 2010

2011

Saldo akhir

The following coal swap transactions outstanding as at 31 Desember 2011:

Harga yang disepakati (beli) nilai penuh/ Deal price (buy) full amount

Mutasi cadangan nilai wajar lindung nilai arus kas adalah sebagai berikut:

Saldo awal Realisasi Perubahan nilai wajar

Coal Swap Transactions (continued)

(14,614) 14,899 5,178

416 (15,030)

Beginning balance Realised Change in fair value

5,463

(14,614)

Ending balance


PT INDO TAMBANGRAYA MEGAH TBK. DAN ANAK PERUSAHAAN/AND SUBSIDIARIES Lampiran 5/63 Schedule CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2011 dan 2010 (Dinyatakan dalam ribuan Dolar AS, kecuali dinyatakan lain) 21. INSTRUMEN DERIVATIF (lanjutan) b.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 AND 2010 (Expressed in thousand US Dollars, unless otherwise stated) 21. DERIVATIVE INSTRUMENTS (continued)

Swap Bahan Bakar Minyak

b.

IMM melakukan perikatan kontrak swap dengan berbagai institusi keuangan untuk melakukan lindung nilai atas harga bahan bakar minyak di masa mendatang. Transaksi swap yang masih berlaku pada tanggal 31 Desember 2011 adalah sebagai berikut:

Mitra transaksi/ Counter parties ANZ Investment Bank Barclays Bank PLC. Mizuho Corporate Bank Societe Generale Standard Chartered Bank

c.

Fuel Swap IMM entered into swap agreements with various financial institutions, to hedge future fuel prices. The following fuel swaps were outstanding as at 31 December 2011:

Harga yang disepakati (jual) nilai penuh/ Deal price (sell) full amount

Jumlah nosional (jual)/Total notional amounts (sell) (barel/barrel)

Harga yang disepakati (beli) nilai penuh/ Deal price (buy) full amount

-

-

US$119.50US$122.05

-

-

-

-

-

-

-

-

US$113.35US$130.00 US$119.50US$120.85 US$121.85US$127.77 US$116.00US$120.75

Kontrak Forward

c.

Jumlah nosional (beli)/Total notional amounts (buy) (barel/barrel)

Tanggal jatuh tempo/ Maturity date Januari/January - Desember/ December 2012

141,000

Januari/January - Desember/ December 2012 Januari/January - Desember/ December 2012 Januari/January - Desember/ December 2012 Januari/January - Desember/ December 2012

804,000 180,000 396,000 180,000

Forward Contracts

ITM, IMM, TCM, JBG dan KTD melakukan perikatan kontrak forward pembelian Rupiah untuk menutupi pembayaran beban operasi di masa mendatang yang menggunakan mata uang Rupiah.

ITM, IMM, TCM, JBG and KTD entered into Rupiah forward buy contracts to cover future operating expenses denominated in Rupiah.

Kontrak yang masih berlaku pada tanggal 31 Desember 2011 adalah sebagai berikut:

The following contracts were outstanding as at 31 December 2011:

Kurs forward/ Forward rate

Jumlah nosional (jual)/Total notional amounts (sell)

Rp8,680 - Rp9,478

US$41,950

Rp8,653 - Rp9,530

US$37,500

Rp341.77 milyar/billion

Januari/January - Desember/ December 2012

Rp8,989 - Rp9,308

US$20,000


Januari/January - Juni/ June 2012

HSBC

Rp9,136 - Rp9,417

US$4,500


JP Morgan

Rp9,238 - Rp9,466

US$8,000


Mei/May - Juli/ July 2012 Mei/May - Oktober/October 2012

Mitra transaksi/ Counter parties Citibank N. A. Standard Chartered Bank PT Bank Central Asia Tbk.

Nilai setara Rupiah (beli)/Rupiah equivalent amounts (buy) Rp385.87 milyar/billion

Tanggal jatuh tempo/ Maturity date Januari/January - November/ November 2012




22. TRANSAKSI DENGAN PIHAK-PIHAK BERELASI

22. RELATED PARTY TRANSACTIONS Related party transactions are as follows:

Transaksi dengan pihak-pihak berelasi adalah sebagai berikut: 2011 Penjualan batubara: - Banpu Public Company Limited - Banpu International Limited - Chiang Muan Mining Co. Ltd.

Persentase dari jumlah penjualan Jasa manajemen dan konsultasi: - Banpu Public Company Limited (lihat Catatan 24j) Persentase dari jumlah jasa profesional dan manajemen Piutang usaha: - Chiang Muan Mining Co. Ltd. - Banpu Public Company Limited - Banpu International Limited

Piutang lain-lain: - Banpu Public Company Limited - Pinjaman karyawan - Banpu Minerals (Singapore) Pte. Ltd.

Jumlah Persentase dari jumlah aset

Liabilitas lain-lain: Jasa manajemen dan konsultasi: - Banpu Public Company Limited Penggantian biaya: - Banpu Public Company Limited - Silamani Company Limited

Jumlah Persentase dari total liabilitas


2010 Sale of coal: Banpu Public Company Limited Banpu International Limited Chiang Muan Mining Co. Ltd. -

60,618 40,253 19,506

18,893 9,994 -

120,377

28,887

5.05%

1.76%

44,864

Management and advisory services: Banpu Public Company Limited 33,413 (refer to Note 24j)

As a percentage of total sales

83.49%

78.12%

As a percentage of total professional and management fees

4,562 4,380 -

3,143

Trade receivables: Chiang Muan Mining Co. Ltd. Banpu Public Company Limited Banpu International Limited -

8,942

3,143

40 396

137 561

-

30

436

728

9,378

3,871

Total

0.59%

0.36%

As a percentage of total assets

4,083

Other receivables: Banpu Public Company Limited Loan to employees Banpu Minerals (Singapore) Pte. Ltd.

Other liabilities: Management and advisory services: 2,713 Banpu Public Company Limited Expense reimbursement: Banpu Public Company Limited Silamani Company Limited -

37 -

47 77

4,120

2,837

4,120

2,837

Total

0.83%

0.77%

As a percentage of total liabilities


PT INDO TAMBANGRAYA MEGAH TBK. DAN ANAK PERUSAHAAN/AND SUBSIDIARIES Lampiran 5/65 Schedule CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2011 dan 2010 (Dinyatakan dalam ribuan Dolar AS, kecuali dinyatakan lain) 22. TRANSAKSI (lanjutan)

DENGAN

PIHAK-PIHAK

BERELASI

Sifat dari hubungan pihak-pihak berelasi yang mengadakan transaksi dengan Perusahaan adalah sebagai berikut: Entitas/Party

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 AND 2010 (Expressed in thousand US Dollars, unless otherwise stated) 22. RELATED PARTY TRANSACTIONS (continued) The nature of the relationships with the related parties is as follows:

Hubungan/Relationships

Banpu Public Company Limited

Pemegang saham pengendali utama Perusahaan/the ultimate controlling entity of the Company

Banpu International Limited

Entitas sepengendali dengan Perusahaan/under common control with the Company Entitas induk Perusahaan/the controlling shareholder of the Company Entitas sepengendali dengan Perusahaan/under common control with the Company Entitas sepengendali dengan Perusahaan/under common control with the Company

Banpu Minerals (Singapore) Pte. Ltd. Chiang Muan Mining Co. Ltd. Silamani Company Limited

Transaksi/Transactions Penjualan batubara/coal sales, penggantian biaya/expense reimbursement, jasa manajemen dan konsultasi/management and advisory services Penjualan batubara/coal sales, penggantian biaya/expense reimbursement Penggantian biaya/expense reimbursement Penjualan batubara/coal sales Penggantian biaya/expense reimbursement

Kebijakan Grup terkait penetapan harga untuk transaksi dengan pihak-pihak berelasi adalah sebagai berikut:

The Group‟s pricing policy related to the transactions with related parties is as follows:



Penjualan batubara ke pihak-pihak berelasi ditetapkan berdasarkan kontrak-kontrak penjualan, yang pada umumnya menggunakan indeks internasional yang setara sebagai perbandingan dan disesuaikan dengan spesifikasi dari batubara dan lokasi pengiriman. Grup mendapatkan persetujuan dari pejabat pemerintah yang terkait sebelum melakukan transaksi-transaksi tersebut.



Sales of coal to related parties are set based on sales contracts, which generally use international indices as benchmarks adjusted for coal specifications and location of deliveries. The Group obtained approvals from the appropriate government authority for these sales transactions.



Pihak-pihak berelasi menagih segala biaya yang dikeluarkan atas nama Grup sebesar biaya yang telah dibayarkan, dan sebaliknya.



Related parties re-charged expenses paid on behalf of the Group at cost, and vice versa.

Kompensasi manajemen kunci

Key management compensation

Manajemen kunci termasuk direksi, komisaris, Sekretaris Perusahaan dan Kepala Audit Internal. Pada tahun 2011, imbalan kerja jangka pendek dan jangka panjang untuk manajemen kunci yang tercatat di laporan keuangan konsolidasian sebesar US$2.621 (2010: US$2.441).

Key management includes directors, commissioners, the Corporate Secretary and the Head of Internal Audit. In 2011, short-term and long-term employee benefits for key management recorded in the consolidated financial statements amounted to US$2,621 (2010: US$2,441).




23. LABA BERSIH PER SAHAM DASAR

23. BASIC EARNINGS PER SHARE Basic net earnings per share is calculated by dividing net income attributable to shareholders by the weightedaverage number of ordinary shares outstanding during the year.

Laba bersih per saham dasar dihitung dengan membagi laba bersih untuk para pemegang saham dengan ratarata tertimbang jumlah saham biasa yang beredar pada tahun yang bersangkutan. 2011 Laba bersih untuk pemegang saham Rata-rata tertimbang jumlah saham biasa yang beredar (dalam ribuan lembar saham) Laba bersih per saham dasar (nilai penuh)

2010

546,126

204,151

1,129,925

1,129,925

Net income attributable to shareholders Weighted average number of ordinary shares outstanding (in thousands of shares)

0.48

0.18

Basic earnings per share (full amount)

Grup tidak memiliki efek yang bersifat dilutif pada 31 Desember 2011 dan 2010. 24. KOMITMEN DAN LIABILITAS KONTINJENSI a.

Komitmen pembelian

The Group did not have any dilutive ordinary shares at 31 December 2011 and 2010. 24. COMMITMENTS AND CONTINGENT LIABILITIES a.

As at 31 December 2011, the Group had outstanding purchase orders for mining equipment and supplies amounting to US$21,786.

Pada tanggal 31 Desember 2011, Grup memiliki pesanan pembelian peralatan dan perlengkapan tambang dan bahan-bahan pendukung lainnya yang belum diterima sebesar US$21.786. b.

Komitmen penjualan

b.

Jaminan reklamasi Bank garansi berikut dapat diklaim oleh Pemerintah jika Grup tidak melaksanakan rencana reklamasi seperti yang telah disetujui dengan Pemerintah pada periode tersebut.


Sales commitments As at 31 December 2011, the Group had various commitments to sell 67.4 million metric tonnes of coal to various buyers. The products will be periodically delivered from 2011 until 2021.

Pada tanggal 31 Desember 2011, Grup memiliki beberapa komitmen untuk menjual 67.4 juta metrik ton batubara ke beberapa pembeli. Batubara tersebut akan dikirimkan secara periodik mulai tahun 2011 hingga 2021. c.

Purchase commitments

c.

Reclamation guarantees The following bank guarantees may be claimed by the Government if the Group does not carry out its reclamation plans as agreed with the Government for those periods.


PT INDO TAMBANGRAYA MEGAH TBK. DAN ANAK PERUSAHAAN/AND SUBSIDIARIES Lampiran 5/67 Schedule CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2011 dan 2010 (Dinyatakan dalam ribuan Dolar AS, kecuali dinyatakan lain) 24. KOMITMEN DAN LIABILITAS KONTINJENSI (lanjutan) c.

d.

Jaminan reklamasi (lanjutan)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 AND 2010 (Expressed in thousand US Dollars, unless otherwise stated) 24. COMMITMENTS AND CONTINGENT LIABILITIES (continued) c.

Reclamation guarantees (continued)

IMM

IMM

IMM telah menyediakan jaminan reklamasi ke Pemerintah dalam bentuk bank garansi senilai Rp16,7 milyar (US$1.840) yang berlaku sampai dengan 31 Januari 2012 untuk memenuhi jaminan reklamasi tahun 2008 - 2012.

IMM provided reclamation guarantees to the Government in the form of bank guarantees totalling Rp16.7 billion (US$1,840) which are valid until 31 January 2012 to cover 2008 - 2012 reclamation requirements.

TCM

TCM

TCM telah menyediakan jaminan reklamasi ke Pemerintah dalam bentuk bank garansi senilai Rp28,5 milyar (US$3.146) yang berlaku sampai dengan 31 Januari 2012 untuk memenuhi jaminan reklamasi tahun 2007 - 2011.

TCM provided reclamation guarantees to the Government in the form of bank guarantees totalling Rp28.5 billion (US$3,146) which are valid until 31 January 2012 to cover 2007 - 2011 reclamation requirements.

KTD

KTD

KTD telah menyediakan jaminan reklamasi ke Pemerintah dalam bentuk bank garansi senilai Rp6,4 milyar (US$706) yang berlaku sampai dengan 31 Januari 2012 untuk memenuhi jaminan reklamasi tahun 2010 - 2014.

KTD provided reclamation guarantees to the Government in the form of bank guarantees totaling Rp6.4 billion (US$706) which are valid until 31 January 2012 to cover 2010 - 2014 reclamation requirements.

JBG

JBG

JBG telah menyediakan jaminan reklamasi ke Pemerintah dalam bentuk bank garansi senilai Rp7,9 milyar (US$876) yang berlaku sampai dengan 31 Januari 2012 untuk memenuhi jaminan reklamasi 2006 - 2011.

JBG provided reclamation guarantees to the Government in the form of bank guarantees totaling Rp7.9 billion (US$876) which are valid until 31 January 2012 to cover 2006 - 2011 reclamation requirements.

Litigasi/investigasi

d.

Litigation/investigation

IMM

IMM

Pada tanggal 20 Januari 2009, IMM mengajukan gugatan perdata terhadap PT Asuransi Andika Raharja Putera melalui Pengadilan Negeri Jakarta Selatan (Perkara No. 29/Pdt.G/2009/PN.JKT.Sel) sehubungan dengan gagal bayar performance bond yang telah diklaim sebelumnya oleh IMM. Klaim performance bond tersebut berjumlah US$1.400 (belum termasuk bunga dan ganti rugi imaterial), ditujukan kepada PT Asuransi Andika Raharja Putera sebagai penerbit performance bond sehubungan dengan wanprestasi yang dilakukan oleh kontraktor proyek pembangunan pembangkit listrik IMM di Bontang.

On 20 January 2009, IMM filed a civil claim against PT Asuransi Andika Raharja Putera through the Civil Court of South Jakarta (Case No. 29/Pdt.G/2009/PN.JKT.Sel) in relation to a defaulting payment of performance bond previously claimed by IMM. The claim of the performance bond, amounting to US$1,400 (not including interest and opportunity loss claims), was claimed to PT Asuransi Andika Raharja Putera as the performance bond issuer in responding to a contractual default by a contractor in the IMM Bontang power plant project.


PT INDO TAMBANGRAYA MEGAH TBK. DAN ANAK PERUSAHAAN/AND SUBSIDIARIES Lampiran 5/68 Schedule CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2011 dan 2010 (Dinyatakan dalam ribuan Dolar AS, kecuali dinyatakan lain) 24. KOMITMEN DAN LIABILITAS KONTINJENSI (lanjutan) d.

Litigasi/investigasi (lanjutan)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 AND 2010 (Expressed in thousand US Dollars, unless otherwise stated) 24. COMMITMENTS AND CONTINGENT LIABILITIES (continued) d.

Litigation/investigation (continued)

IMM (lanjutan)

IMM (continued)

Pada tanggal 18 Agustus 2009, Pengadilan Negeri Jakarta Selatan mengeluarkan Putusan No. 29/Pdt.G/2009/PN.Jkt.Sel yang mengabulkan gugatan IMM dan memerintahkan pihak Tergugat (PT Asuransi Andika Raharja Putera) untuk membayar ganti rugi kepada pihak Penggugat (IMM) sebesar US$1.400. Tergugat kemudian mengajukan banding ke Pengadilan Tinggi Jakarta melalui Pengadilan Negeri Jakarta Selatan. Dalam tahap banding di Pengadilan Tinggi Jakarta tersebut, pada tanggal 1 April 2010, IMM dan pihak tergugat setuju untuk menyelesaikan perselisihan secara damai. IMM setuju untuk menerima pembayaran sebesar US$840 dari pihak tergugat, yang merupakan 60% dari nilai performance bond.

On 18 August 2009, the South Jakarta District Court issued Decision No. 29/Pdt.G/2009/PN.Jkt.Sel which granted IMM's claim and ordered the Defendant (PT Asuransi Andika Raharja Putera) to pay compensation to the Plaintiff (IMM) in the amount of US$1,400. Subsequently, the Defendant submitted an appeal to the Jakarta High Court through the South Jakarta District Court. During the appeal stage at the Jakarta High Court, on 1 April 2010, IMM and the Defendant agreed to settle the dispute amicably. IMM agreed to receive US$840 from the Defendant, which represents 60% of the performance bond.

Namun demikian, meskipun Penggugat dan Tergugat telah menyelesaikan perkara secara damai dan menyampaikan perjanjian perdamaian kepada Pengadilan Tinggi Jakarta, pada bulan Juli 2011 Pengadilan Tinggi Jakarta mengeluarkan putusan yang pada intinya menyatakan bahwa gugatan Penggugat tidak dapat diterima. Oleh karena itu, pada tanggal 26 Juli 2011, IMM sebagai Penggugat, telah mengajukan Permohonan Kasasi ke Mahkamah Agung RI dan telah pula menyampaikan Memori Kasasi pada tanggal 24 Agustus 2011 kepada Mahkamah Agung RI melalui Kantor Kepaniteraan Pengadilan Negeri Jakarta Selatan, atas putusan Pengadilan Tinggi Jakarta tersebut.

However, even though the Plaintiff and the Defendant have settled the case amicably and submitted the settlement agreement to the Jakarta High Court, in July 2011 the Jakarta High Court issued a decision which declared that the Plaintiff's claim is unacceptable. Therefore, on 26 July 2011, IMM as the Plaintiff submitted an appeal to the Supreme Court of the Republic of Indonesia and also submitted the Memorandum of Appeal on 24 August 2011 to the Supreme Court of the Republic of Indonesia via the Registrar Office of the South Jakarta District Court, against the decision of the Jakarta High Court.

TCM

TCM

Melalui Pemberitahuan Arbitrase tertanggal 2 Desember 2008, salah satu kontraktor TCM memulai upaya penyelesaian sengketa dengan TCM melalui arbitrase di Singapura dengan klaim senilai US$1.415. Pemberitahuan tersebut disampaikan kepada Singapore International Arbitration Centre (“SIAC”).

By Notice of Arbitration dated 2 December 2008, one of TCM's contractors commenced arbitration in Singapore against TCM for a claim totalling US$1,415. The Notice was filed with the Singapore International Arbitration Centre (“SIAC”).

Pada tanggal laporan keuangan ini, upaya arbitrase belum menunjukkan kemajuan sejak diajukannya pemberitahuan sebagaimana tersebut di atas dan kontraktor tersebut belum memulai tahapantahapan dalam arbitrase sejak tanggal 2 Desember 2008.

As at the date of these financial statements, the arbitration had not progressed beyond the above mentioned notice and the contractor had not taken any steps in the arbitration since 2 December 2008.

Manajemen berpendapat bahwa penyelesaian masalah-masalah tersebut di atas tidak akan memberikan dampak yang material terhadap posisi keuangan atau arus kas Grup.

Management believes that resolution of this matter will not have a material adverse impact on the Group‟s financial position and cash flows.



PT INDO TAMBANGRAYA MEGAH TBK. DAN ANAK PERUSAHAAN/AND SUBSIDIARIES Lampiran 5/69 Schedule CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2011 dan 2010 (Dinyatakan dalam ribuan Dolar AS, kecuali dinyatakan lain) 24. KOMITMEN DAN LIABILITAS KONTINJENSI (lanjutan) e.

Kontrak jasa penambangan, komitmen pembelian bahan bakar dan perjanjian sewa kendaraan

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 AND 2010 (Expressed in thousand US Dollars, unless otherwise stated) 24. COMMITMENTS AND CONTINGENT LIABILITIES (continued) e.

The Company‟s subsidiaries entered into various mining services contracts, fuel purchase agreements and vehicle rental agreements to support its mine operations.

Anak-anak perusahaan mengadakan berbagai macam perjanjian dengan jasa kontraktor pertambangan, pembelian bahan bakar dan sewa kendaraan untuk mendukung operasi tambang.

f.

Mining services contracts, fuel purchase agreements and vehicle rental agreements



Kontraktor-kontraktor yang saat ini digunakan untuk pertambangan, antara lain, adalah PT Pamapersada Nusantara, PT Mitra Alam Persada, PT Borneo Alam Semesta, PT Surya Triwira Sakti, PT Arkananta Apta Pratista dan PT Riung Mitra Lestari. Setiap perjanjian dengan kontraktor pertambangan mengatur, antara lain, tingkat harga, penyesuaian harga bahan bakar, konsumsi bahan bakar, manajemen bahan peledak, insentif untuk kontraktor, tolak ukur rasio pengupasan tanah dan hal lainnya. Nilai kontrak tergantung pada volume tanah overburden yang dipindahkan dan batubara yang ditambang. Kontrak-kontrak tersebut akan berakhir antara Januari 2012 sampai dengan Juni 2014.



The mining services contractors are, among others, PT Pamapersada Nusantara, PT Mitra Alam Persada, PT Borneo Alam Semesta, PT Surya Triwira Sakti, PT Arkananta Apta Pratista and PT Riung Mitra Lestari. Each agreement governs, among others, the price rate, fuel price adjustment, fuel consumption, explosives management, incentives for the contractor, stripping ratio benchmarks and other terms. Contract values are dependent on volumes of overburden moved and coal mined. These contracts will expire between January 2012 and June 2014.



Perjanjian pembelian bahan bakar dilakukan dengan Pertamina. Pada tanggal 31 Desember 2011, jumlah sisa nilai kontrak adalah 154.000 kiloliter. Anak-anak perusahaan memberikan jaminan bank garansi untuk Pertamina dengan nilai total US$3.722.



The fuel purchase agreements were entered into with Pertamina. As at 31 December 2011, the total remaining contract quantity was 154,000 kilolitres. The Company‟s subsidiaries have provided bank guarantees to Pertamina for a total amount of US$3,722.



Perjanjian sewa kendaraan dilakukan dengan berbagai penyedia jasa. Jumlah sisa nilai kontrak adalah Rp55,05 milyar atau setara dengan US$6.071.



The vehicle rental agreements were entered into with various providers. The total remaining contract value is Rp55.05 billion or equivalent to US$6,071.

Komisi keagenan

f.

Agency fees

IMM, JBG, dan TCM

IMM, JBG and TCM

IMM, JBG, dan TCM memiliki beberapa perjanjian keagenan dengan agen pihak ketiga untuk memasarkan batubara mereka kepada pelangganpelanggan tertentu. Agen tersebut akan mendapatkan komisi berdasarkan persentase penjualan kepada pelanggan-pelanggan tersebut.

IMM, JBG and TCM have various agency agreements with third party agents to market their coal for certain customers. The agents will receive commissions based on a percentage of sales to those customers.


PT INDO TAMBANGRAYA MEGAH TBK. DAN ANAK PERUSAHAAN/AND SUBSIDIARIES Lampiran 5/70 Schedule CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2011 dan 2010 (Dinyatakan dalam ribuan Dolar AS, kecuali dinyatakan lain) 24. KOMITMEN DAN LIABILITAS KONTINJENSI (lanjutan) g.

Fasilitas kredit

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 AND 2010 (Expressed in thousand US Dollars, unless otherwise stated) 24. COMMITMENTS AND CONTINGENT LIABILITIES (continued) g.

Credit facilities

Perusahaan

The Company

Standard Chartered Bank (“SCB”)

Standard Chartered Bank (“SCB”)

Pada 18 September 2008, Perusahaan mengadakan perjanjian fasilitas kredit dengan SCB. Fasilitas kredit perbankan tersedia bagi Perusahaan (“Peminjam”), IMM, KTD, JBG dan Bharinto (bersama-sama disebut “sub-Peminjam”) dengan Fasilitas Perbankan Umum sejumlah US$40.000 dimana setiap fasilitas dianggap sebagai sub-limit dengan jumlah gabungan fasilitas yang dipakai tidak boleh melebihi Fasilitas Perbankan Umum.

On 18 September 2008, the Company entered into a banking credit facility agreement with SCB. The banking credit facilities are made available to the Company (the “Borrower”), IMM, KTD, JBG and Bharinto (collectively the “co-Borrowers”) with General Banking Facilities of US$40,000 with each facility treated as a sub-limit with the combined outstanding amount not to exceed the amount of the General Banking Facility.

Fasilitas-fasilitas ini mengharuskan Peminjam dan sub-Peminjam untuk memenuhi persyaratanpersyaratan yang bersifat keuangan dan nonkeuangan.

These facilities require various financial and nonfinancial undertakings to be complied with.

Perjanjian ini berlaku sampai dengan 30 Juni 2009 (“Periode Ketersediaan”). Pada saat berakhirnya Periode Ketersediaan tersebut kecuali diubah oleh SCB, Perubahan Perjanjian Fasilitas Perbankan ini akan secara otomatis diperpanjang selama satu tahun.

The agreement is valid until 30 June 2009 (the “Availability Period”). Upon the expiration of the Availability Period, unless otherwise amended by the Bank, this Banking Facility Amendment Agreement will be automatically extended for another year.

Berdasarkan amendemen perjanjian terakhir tertanggal 1 Agustus 2011, fasilitas ini diperpanjang sampai dengan tanggal 31 Juli 2012 dan tersedia juga bagi TCM. SCB menyediakan beberapa Fasilitas Perbankan Umum sejumlah US$130.000, seperti Bond and Guarantees facility, Short Term Loans facility, Overdraft facility, Import Letter of Credit facility, Loans Against Trust Receipts facility, Shipping Guarantees facility, Pre-shipment Financing under Export Letter of Credit facility, Credit Bills Negotiated Discrepant facility, Commercial Standby Letter of Credit facility, Foreign Currency Exchange facility, Export Invoice Financing facility, dan Import Invoice Financing facility.

Based on the latest amendment dated 1 August 2011, the agreement was extended until 31 July 2012 and it was also made available to TCM. SCB provides General Banking Facilities of US$130,000, including Bond and Guarantees facility, Short Term Loans facility, Overdraft facility, Import Letter of Credit facility, Loans Against Trust Receipts facility, Shipping Guarantees facility, Pre-shipment Financing under Export Letter of Credit facility, Credit Bills Negotiated Discrepant facility, Commercial Standby Letter of Credit facility, Foreign Currency Exchange facility, Export Invoice Financing facility, and Import Invoice Financing facility.



PT INDO TAMBANGRAYA MEGAH TBK. DAN ANAK PERUSAHAAN/AND SUBSIDIARIES Lampiran 5/71 Schedule CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2011 dan 2010 (Dinyatakan dalam ribuan Dolar AS, kecuali dinyatakan lain) 24. KOMITMEN (lanjutan) g.

DAN

LIABILITAS

KONTINJENSI

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 AND 2010 (Expressed in thousand US Dollars, unless otherwise stated) 24. COMMITMENTS (continued)

Fasilitas kredit (lanjutan)

g.

AND

CONTINGENT

LIABILITIES

Credit facilities (continued)

Perusahaan (lanjutan)

The Company (continued)

Standard Chartered Bank (“SCB”) (lanjutan)

Standard Chartered Bank (“SCB”) (continued)

Pada tanggal 31 Desember 2011, Grup telah menggunakan fasilitas berikut ini:

As at 31 December 2011, the Group had used the following facilities:

Jenis fasilitas/Type of facility -

Fasilitas Impor/Import Facilities

-

-

Batas/Limit

Jumlah yang telah dipakai/Amounts utilised

US$40,000

US$1,351

Bonds dan Jaminan dan Fasilitas Standby Letter of Credit/Bonds and Guarantees and Standby Letter of Credit Facility

US$130,000

Fasilitas Nilai Tukar Mata Uang Asing/Foreign Currency Exchange Facility Fasilitas Credit Bills Negotiated Discrepant/Credit Bills Negotiated Discrepant Facility

Tidak terbatas/unlimited

Rp389.97 milyar/billion (setara dengan/equivalent to US$43,005) dan/and US$8,672 US$37,500 US$5,974

US$40,000

PT Bank Central Asia Tbk. (“BCA”)

PT Bank Central Asia Tbk. (“BCA”)

Pada tanggal 19 Januari 2011, Perusahaan, IMM, KTD, JBG, TCM dan Bharinto (bersama-sama disebut ”Peminjam”) mengadakan perikatan perjanjian fasilitas kredit dengan BCA. Perjanjian ini berlaku sampai dengan 11 Agustus 2012. BCA menyediakan fasilitas berikut ini:

On 19 January 2011, the Company, IMM, KTD, JBG, TCM and Bharinto (collectively the “Borrower”) entered into a credit facility agreement with BCA. The agreement is valid until 11 August 2012. BCA provides the following facilities:

Jenis fasilitas gabungan/Type of joint facility Gabungan L/G line, Standby L/C, Jaminan Bank, Letter of Credit dan Surat Kredit Berdokumen Dalam Negeri/Omnibus L/G line, Standby L/C, Bank Guarantee, Letter of Credit and Letter of Credit for Local Documents Fasilitas nilai tukar/Foreign exchange line Fasilitas kredit lokal/Local credit facility

Batas/Limit

US$40,000 US$86,000 Rp50 milyar/billion (setara dengan/equivalent to US$5,514)


US$20,000

-

Fasilitas ini mengharuskan Peminjam untuk memenuhi persyaratan-persyaratan yang bersifat keuangan dan non-keuangan.

This facility requires various financial and nonfinancial undertakings to be complied with by the Borrower.

Jaminan atas fasilitas ini adalah laba operasi Peminjam dengan agunan negatif tanpa preferensi.

Collateral is the Borrower‟s operating income with negative pledge without preference.




24. COMMITMENTS AND CONTINGENT LIABILITIES (continued) g.

Perusahaan (lanjutan) The Hongkong and Shanghai Corporation Limited (“HSBC”)


Credit facilities (continued) The Company (continued)

Banking

Pada tanggal 3 Maret 2011, Perusahaan, IMM, TCM, JBG, KTD dan Bharinto (bersama-sama disebut “Peminjam”) mengadakan perikatan perjanjian fasilitas kredit dengan HSBC. Perjanjian ini berlaku sampai dengan 31 Juli 2012. HSBC menyediakan fasilitas berikut ini:

Jenis fasilitas gabungan/Type of joint facility Jaminan Bank, Standby L/C, Fasilitas Kredit Berdokumen, Deferred Payment Credit Facility dan Revolving Loan/Bank Guarantee, Standby L/C, Documentary Credit Facility, Deferred Payment Credit Facility and Revolving Loan Fasilitas nilai tukar/Foreign exchange line

The Hongkong and Shanghai Corporation Limited (“HSBC”)

Banking

On 3 March 2011, the Company, IMM, TCM, JBG, KTD and Bharinto (Collectively the “Borrower”) entered into a credit facility agreement with HSBC. The agreement is valid until 31 July 2012. HSBC provides the following facilities: Jumlah yang telah dipakai/Amounts utilised

Batas/Limit

US$20,000

-

US$35,000

US$4,500

Fasilitas ini mengharuskan Peminjam untuk memenuhi persyaratan-persyaratan yang bersifat keuangan dan non-keuangan.

This facility requires various financial and nonfinancial undertakings to be complied with by the Borrower.

Citibank, N. A. (“Citibank”)

Citibank, N. A. (“Citibank”)

Pada tanggal 9 Oktober 2009, Perusahaan dan Citibank melakukan perjanjian perdagangan mata uang asing dengan batas berdasarkan kondisi pasar yang ditentukan oleh Citibank. Perjanjian ini tidak mengikat dan dapat ditelaah, dikurangi atau dibatalkan dari waktu ke waktu oleh Citibank. Pada tanggal 31 Desember 2011, fasilitas yang telah digunakan adalah sebesar US$27.400.

On 9 October 2009, the Company and Citibank entered into a foreign exchange trade agreement with the limit based on current market conditions as determined by Citibank. The agreement is uncommitted and subject to review, reduction or cancellation from time to time by Citibank. As at 31 December 2011, the facilities that had been used amounted to US$27,400.

J.P.Morgan Chase Bank, N.A. (“JP Morgan”)

J.P.Morgan Chase Bank, N.A. (“JP Morgan”)

Pada tanggal 26 Mei 2011, Perusahaan mengadakan perjanjian fasilitas nilai tukar dengan JP Morgan. Tujuannya adalah untuk melindungi eksposur nilai tukar mata uang asing (transaksi spot dan forward dengan tenor sampai dengan satu tahun) dan setiap transaksi yang terkait dengan foreign exchange trade long confirmation.

On 26 May 2011, the Company entered into foreign currency exchange facility with JP Morgan. The purpose is to hedge foreign exchange exposures (spot and forward transactions up to one year) and any deal is a subject to foreign exchange trade long confirmation.

Jenis fasilitas gabungan/Type of joint facility Fasilitas nilai tukar/Foreign exchange line



Batas/Limit -

US$5,000,000



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 AND 2010 (Expressed in thousand US Dollars, unless otherwise stated) 24. COMMITMENTS AND CONTINGENT LIABILITIES (continued)


g.


Anak Perusahaan

Subsidiaries

IMM

IMM

Citibank

Citibank

Pada tanggal 17 Januari 2006, IMM dan Citibank mengadakan perikatan Perjanjian Derivatif dan Swap dengan batasan yang didasarkan pada kondisi pasar yang ditentukan Citibank. Perjanjian bersifat tidak mengikat dan dapat ditinjau ulang, dikurangi atau dibatalkan sewaktu-waktu oleh Citibank. Tidak ada fasilitas yang dipakai pada tanggal 31 Desember 2011.

On 17 January 2006, IMM and Citibank entered into Swaps and Derivative Agreements with the limit based on current market conditions as determined by Citibank. The agreement is uncommitted and subject to review, reduction or cancellation from time to time by Citibank. There was no outstanding facility as at 31 December 2011.

Pada tanggal 17 Januari 2006, IMM mengadakan perikatan Perjanjian Kredit Revolving dengan Citibank yang berlaku hingga 17 Januari 2007. Fasilitas ini telah diperpanjang hingga 17 Januari 2013. Fasilitas kredit yang diberikan adalah sebagai berikut:

On 17 January 2006, IMM entered into a Revolving Credit Agreement with Citibank valid until 17 January 2007. This facility agreement has been extended until 17 January 2013. The credit facilities are as follows:

Jenis fasilitas/Type of facility Fasilitas Modal Kerja/Working Capital Facility Fasilitas Letters of Credit/Letters of Credit Facility Jaminan Bank/Bank Guarantee

Batas/Limit US$25,000 US$25,000 US$25,000

Fasilitas Nilai Tukar Mata Uang Asing/ Foreign Currency Exchange Facility

Jumlah yang telah dipakai/Amounts utilised -

US$1,500

Jumlah fasilitas tidak boleh melebihi US$25.000.

The total facility shall not exceed the amount of US$25,000.

IMM harus memenuhi persyaratan-persyaratan yang bersifat keuangan dan non-keuangan sehubungan dengan fasilitas-fasilitas tersebut.

IMM must comply with various financial and nonfinancial covenants with respect to the facilities.





g.


KTD

KTD

Citibank

Citibank

Pada tanggal 17 Januari 2006, KTD dan Citibank melakukan Perjanjian Derivatif dan Swap dengan batas berdasarkan kondisi pasar yang ditentukan oleh Citibank. Perjanjian ini tidak mengikat dan dapat ditelaah, dikurangi, atau dibatalkan dari waktu ke waktu oleh Citibank.

On 17 January 2006, KTD and Citibank entered into Swaps and Derivative Agreements with the limit based on current market conditions as determined by Citibank. The agreement is uncommitted and subject to review, reduction or cancellation from time to time by Citibank.

Jumlah fasilitas yang dipakai pada tanggal 31 Desember 2011 sebesar US$13.050.

The total outstanding facility as at 31 December 2011 amounted to US$13,050.

Pada 18 Desember 2008, Perjanjian Kredit Revolving telah disepakati antara KTD dan Citibank dengan fasilitas omnibus US$15.000 (fasilitas ini termasuk dalam fasilitas IMM yang berjumlah US$25.000). Berdasarkan amandemen perjanjian tanggal 18 Desember 2010, perjanjian ini berlaku sampai dengan tanggal 17 Januari 2013. Fasilitas tersebut adalah:

On 18 December 2008, KTD and Citibank entered into a Revolving Credit Agreement with an omnibus facility of US$15,000 (this facility is included in the US$25,000 facility of IMM). Based on an amendment to the agreement dated 18 December 2010, this agreement is valid until 17 January 2013. The facilities are:

Jenis fasilitas/Type of facility Fasilitas Modal Kerja/Working Capital Facility Fasilitas Kredit Ekspor/Export Credit Facility Fasilitas Nilai Tukar Mata Uang Asing/ Foreign Currency Exchange Facility


Batas/Limit US$15,000 US$15,000

-

-

US$13,050

Jumlah total fasilitas tidak boleh melebihi batas fasilitas omnibus.

The total amount of the facility should not exceed the limit of the omnibus facility.

KTD harus memenuhi persyaratan-persyaratan yang bersifat keuangan dan non-keuangan sehubungan dengan fasilitas ini.

KTD is required to comply with various financial and non-financial undertakings with respect to this facility.






g.

TCM Bangkok Bank Public (“Bangkok Bank”)

Credit facilities (continued) TCM

Company

Limited

Bangkok Bank Public (“Bangkok Bank”)

Company

Limited

Pada tanggal 22 September 2006, Perjanjian Kredit Revolving telah disepakati dengan Bangkok Bank dengan fasilitas berikut ini yang ditujukan untuk modal kerja. Berdasarkan amandemen perjanjian jumlah pinjaman maksimum US$20.000 yang terdiri dari Fasilitas Letter of Credit (“L/C sight”), Fasilitas Letter of Credit untuk jangka waktu 90 hari (“Usance L/C”), Fasilitas Tagihan Piutang dibawah Fasilitas Letter of Credit (“BRL”), dan Fasilitas Standby Letter of Credit (“SBLC”), Uang Muka terhadap Wesel Bayar (Advance against Promissory Notes) untuk tagihan impor dengan fasilitas Letter of Credit dengan jangka waktu 180 hari (“T/R”), fasilitas Uang Muka terhadap Wesel Bayar (Advance against Promissory Notes) untuk modal kerja dengan jangka waktu 180 hari (“P/N”), dan fasilitas Letter of Guarantee. Berdasarkan amandemen perjanjian terakhir tertanggal 19 September 2011, fasilitas ini akan berakhir pada tanggal 31 Desember 2011. Sampai dengan tanggal laporan keuangan ini, fasilitas tersebut masih dalam proses perpanjangan. TCM harus memenuhi persyaratan-persyaratan yang bersifat keuangan dan non-keuangan sehubungan dengan fasilitas ini.

On 22 September 2006, a Revolving Credit Agreement has been drawn up with Bangkok Bank with the following facilities for working capital purposes: an aggregate principal amount up to US$20,000 consisting of Letters of Credit Facility (“L/C sight”), Letters of Credit Facility for the term of 90 days (“Usance L/C”), Letter of Bills Receivable under Letter of Credit Facility (“BRL”) and Standby Letter of Credit Facility (“SBLC”) Advance against Promissory Notes for Import bills under sight Letter of Credit facility for the term of 180 days (“T/R”), Advance against Promissory Notes for working capital facility for the term of 180 days (“P/N”), and Letter of Guarantee facility. Based on the latest amendment dated 19 September 2011 the facility is valid until 31 December 2011. As at the date of these financial statements, the facility is in the process of extension. TCM is required to comply with various financial and non-financial undertakings with respect to this facility.

Pada tanggal 27 Desember 2006, TCM menandatangani Perjanjian Perdagangan Mata Uang Asing dengan Bangkok Bank, yang menjadi bagian integral dan tidak terpisahkan dari Perjanjian Kredit Revolving. Berdasarkan amandemen perjanjian terakhir tanggal 19 September 2011, fasilitas ini diperpanjang sampai dengan tanggal 31 Desember 2011. Sampai dengan tanggal laporan keuangan ini, fasilitas tersebut masih dalam proses perpanjangan.

On 27 December 2006, TCM entered into a Foreign Exchange Trade Agreement with Bangkok Bank, which constitutes an integral and inseparable part of the Revolving Credit Agreement. Based on the latest amendment to the agreement dated 19 September 2011, the facility is valid until 31 December 2011. As at the date of these financial statements, the facility is in the process of extension.

Pada tanggal 31 Desember 2011, fasilitas yang telah digunakan adalah sebagai berikut:

As at 31 December 2011, the facilities that had been used were as follows:

Jenis fasilitas/Type of facility

Batas/Limit

- Jaminan bank/Bank Guarantee

US$20,000

- Fasilitas Nilai Tukar Mata Uang Asing/Foreign Currency Exchange Facility

US$75,000

Jumlah yang telah dipakai/Amounts utilised Rp28.53 milyar/billion (setara dengan/equivalent with US$3,146) -





g.


TCM (lanjutan)

TCM (continued)

JP Morgan

JP Morgan

Pada tanggal 27 Juni 2011, TCM mengadakan perjanjian fasilitas nilai tukar dengan JP Morgan. Tujuannya adalah untuk melindungi eksposur nilai tukar mata uang asing (transaksi spot dan forward dengan tenor sampai dengan satu tahun) dan setiap transaksi yang terkait dengan foreign exchange trade long confirmation.

On 27 June 2011, TCM entered into foreign currency exchange facility with JP Morgan. The purpose is to hedge foreign exchange exposures (spot and forward transactions up to one year) and any deal is a subject to foreign exchange trade long confirmation.

Jenis fasilitas gabungan/Type of joint facility Fasilitas nilai tukar/Foreign exchange line h.

i.

Sewa dan pajak tanah


Batas/Limit h.

US$3,000,000

Deadrent and land tax

Bharinto

Bharinto

Sesuai dengan PKP2B, Bharinto harus membayar sewa tanah dengan angsuran enam bulanan selama masa PKP2B. Sewa dihitung berdasarkan jumlah hektar yang termasuk dalam area PKP2B, sesuai dengan tarif yang ditetapkan dalam PKP2B. Hutang pajak bumi dan bangunan selama masa pra-produksi adalah sebesar sewa tanah. Selama masa produksi, Bharinto diwajibkan membayar pajak bumi dan bangunan sebesar sewa tanah ditambah 0,15% dari pendapatan kotor dari operasi tambang.

Pursuant to its Coal Agreement, Bharinto shall pay the Government deadrent in semi-annual installments during the term of the Coal Agreement. Deadrent is calculated by reference to the number of hectares included in the Coal Agreement area, in accordance with the rates stipulated in the Coal Agreement. Land and building tax payable for the pre-production period is equal to the amount of deadrent. During the production period, Bharinto is required to pay land and building tax equal to the deadrent plus 0.15% of gross revenue from the mining operations.

Biaya kehutanan

i.

Forestry fee

IMM, TCM, KTD, dan JBG

IMM, TCM, KTD and JBG

Berdasarkan Peraturan Pemerintah No. 2 tanggal 4 Februari 2008, seluruh perusahaan yang memiliki aktivitas di dalam area hutan produksi dan hutan lindung namun kegiatannya tidak berhubungan dengan kegiatan kehutanan memiliki kewajiban untuk membayar iuran kehutanan berkisar dari Rp1.200.000 sampai Rp3.000.000 per hektar. Iuran ini berlaku sejak tahun 2008. Grup mengakui iuran ini dengan dasar akrual.

Based on Government Regulation No. 2 dated 4 February 2008, all companies which have activities in production and protected forest areas but not related to forestry activity will have an obligation to pay a forestry fee ranging from Rp1,200,000 to Rp3,000,000 per hectare. This fee is effective from 2008. The Group has recognised this fee on an accrual basis.



PT INDO TAMBANGRAYA MEGAH TBK. DAN ANAK PERUSAHAAN/AND SUBSIDIARIES Lampiran 5/77 Schedule CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2011 dan 2010 (Dinyatakan dalam ribuan Dolar AS, kecuali dinyatakan lain) 24. KOMITMEN DAN LIABILITAS KONTINJENSI (lanjutan) j.

Jasa manajemen dan konsultasi

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 AND 2010 (Expressed in thousand US Dollars, unless otherwise stated) 24. COMMITMENTS AND CONTINGENT (continued) j.

l.

Pembagian hasil produksi/iuran eksploitasi

Management and advisory services On 22 October 2007, the Company entered into a Management and Advisory Service Agreement with Banpu Public Company Limited (“BPL”). BPL agreed to be exclusively engaged in rendering the services to the Group which includes general services and marketing and logistics advisory services. The fee related to the services is US$2,000 per quarter (fixed fee) and 1.5% of gross revenues from coal sales (variable fee). The agreement is valid from 1 January 2008 until 31 December 2008 and automatically renewed on an annual basis.

Pada tanggal 22 Oktober 2007, Perusahaan mengadakan perjanjian Jasa Manajemen dan Konsultasi dengan Banpu Public Company Limited (“BPL”). BPL setuju memberikan jasa kepada Grup secara eksklusif, yang meliputi jasa umum dan jasa konsultasi pemasaran dan logistik. Imbalan yang dikenakan atas jasa tersebut adalah US$2.000 setiap kuartal (imbalan tetap) dan 1,5% penjualan kotor batubara (imbalan variabel). Perjanjian tersebut berlaku dari 1 Januari 2008 sampai dengan 31 Desember 2008 dan diperpanjang secara otomatis setiap tahunnya. k.

LIABILITIES

k.

Production sharing/exploitation fee

Berdasarkan Peraturan Pemerintah No. 45/2003 sebagaimana telah diubah menjadi Peraturan Pemerintah No. 9/2012, seluruh perusahaan yang memiliki kuasa pertambangan diwajibkan untuk membayar iuran eksploitasi sebesar 3% sampai 7% dari nilai penjualan, setelah dikurangi beban penjualan. Iuran eksploitasi ini berlaku untuk KTD.

Based on Government Regulation No. 45/2003 which was replaced by Government Regulation No. 9/2012, all companies holding mining rights will have an obligation to pay an exploitation fee ranging from 3% to 7% of sales, net of selling expenses. The exploitation fee is applicable for KTD.

Berdasarkan PKP2B, Pemerintah berhak memperoleh 13,5% atas jumlah batubara yang dihasilkan oleh IMM, TCM, dan JBG dari proses produksi akhir perusahaan. Sesuai dengan keputusan Presiden No. 75/1996 tertanggal 25 September 1996, perusahaan-perusahaan tersebut membayar bagian produksi Pemerintah secara tunai, yaitu sebesar 13,5% dari penjualan setelah dikurangi beban penjualan.

As stipulated in the Coal Agreement, the Government is entitled to take 13.5% of total coal produced from the final production processes established by IMM, TCM and JBG. In accordance with Presidential Decree No. 75/1996 dated 25 September 1996, these companies pay the Government‟s share of production in cash, which represents 13.5% of sales after deduction of selling expenses.

Undang-Undang Pertambangan No. 4/2009 Pada tanggal 16 Desember 2008, Dewan Perwakilan Rakyat Indonesia meloloskan UndangUndang Pertambangan Mineral dan Batubara yang baru (“Undang-Undang”), yang telah disetujui oleh Presiden pada 12 Januari 2009, menjadi UU No. 4/2009. Sistem PKP2B dimana beberapa anak perusahaan Grup beroperasi sudah tidak tersedia bagi para investor. Meskipun, Undang-Undang mengindikasikan PKP2B yang ada, seperti yang dimiliki Grup akan tetap diberlakukan sampai jangka waktu berakhirnya kontrak, ketentuan peralihan tidaklah jelas dan memerlukan klarifikasi lebih lanjut melalui peraturan pemerintah. Terdapat sejumlah permasalahan yang sedang dianalisa pemegang PKP2B, termasuk Grup. Beberapa diantaranya termasuk:

l.

Mining Law No. 4/2009 On 16 December 2008, the Indonesian Parliament passed a new Law on Mineral and Coal Mining (the “Law”), which received the assent of the President on 12 January 2009, becoming Law No. 4/2009. CCA system under which several of the Group‟s subsidiaries operate will no longer be available to investors. While the Law indicates that existing CCAs, such as those held by the Group, will be honoured, the transition provisions are unclear, and will require clarification through government regulations. There are a number of issues which existing CCA holders, including the Group, are currently analysing. Among others these include:


PT INDO TAMBANGRAYA MEGAH TBK. DAN ANAK PERUSAHAAN/AND SUBSIDIARIES Lampiran 5/78 Schedule CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2011 dan 2010 (Dinyatakan dalam ribuan Dolar AS, kecuali dinyatakan lain) 24. KOMITMEN DAN LIABILITAS KONTINJENSI (lanjutan) l.

Undang-Undang (lanjutan)

Pertambangan

No.

4/2009

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 AND 2010 (Expressed in thousand US Dollars, unless otherwise stated) 24. COMMITMENTS AND CONTINGENT (continued) l.

LIABILITIES

Mining Law No. 4/2009 (continued)

-

ketentuan peralihan atas PKP2B. UndangUndang menjelaskan bahwa PKP2B akan tetap diberlakukan sampai jangka waktu berakhirnya juga kontrak. Namun, Undang-Undang menetapkan bahwa PKP2B yang ada harus disesuaikan dalam jangka waktu satu tahun terhadap ketentuan Undang-Undang (kecuali untuk penerimaan negara - yang tidak didefinisikan, tetapi diasumsikan termasuk royalti dan pajak); dan

-

the CCA transition provisions. The Law notes that existing CCAs will be honoured until their expiration. However, it also states that existing CCAs must be amended within one year to conform with the provisions of the Law (other than terms related to State revenue which is not defined, but presumably includes royalties and taxes); and

-

keharusan bagi pemegang PKP2B yang telah memulai aktivitasnya untuk, dalam waktu satu tahun sejak diberlakukannya Undang-Undang yang baru, menyerahkan rencana kegiatan penambangan untuk keseluruhan area kontrak. Jika ketentuan ini tidak dilaksanakan, area kontrak dapat dikurangi menjadi hanya seluas area yang diperbolehkan untuk Izin Usaha Pertambangan berdasarkan Undang-Undang.

-

the requirement for CCA holders which have already commenced some form of activity to, within one year of enactment of the new Law, submit a mining activity plan for the entire contract area. If this requirement is not fulfilled, the contract area may be reduced to that allowed for licences under the Law.

Diperkirakan para pemegang PKP2B, dengan dukungan dari asosiasi industri pertambangan, akan mempertahankan hak mereka berdasarkan kontrak yang sekarang berlaku. Terdapat kemungkinan bahwa ketentuan arbitrase akan dipakai jika pemerintah mencoba untuk memaksa perubahan ketentuan PKP2B tanpa persetujuan pemegang PKP2B. Grup sedang menganalisa dampak situasi ini terhadap operasinya, dan yakin bahwa tidak terdapat dampak yang signifikan dalam waktu dekat, karena industri pertambangan dan pemerintah bekerjasama untuk menyelesaikan permasalahan-permasalahan yang ada.

It is expected that CCA holders, with the support of mining industry associations, will vigorously defend their rights under their existing contracts. It is possible that the arbitration provisions of the CCAs will be invoked if the government attempts to force changes in CCA terms without the agreement of the contractors. The Group is analysing the impact of this situation on its operations, and believes that there will be no significant impact in the near term, as the industry and the government work towards a consensus on these issues.

Setelah keluarnya Undang-Undang tersebut, Direktur Jenderal Mineral, Batubara dan Panas Bumi (“DJMBP”) menerbitkan Surat Keputusan (“SK”) No. 03.E/31/DJB/2009 sehubungan dengan Kuasa Pertambangan (“KP”) yang menjadi dasar operasi KTD. Beberapa di antaranya adalah:

Following the issuance of the Law, the Director General of Minerals, Coal and Geothermal (“DGMCG”) issued Circular No. 03.E/31/DJB/2009 with respect to Mining Rights (“KP”) under which KTD operates. The Circular states that, among others:

• KP yang ada pada saat diberlakukannya Undang-Undang masih berlaku hingga jangka waktu berakhirnya KP tetapi wajib dikonversi menjadi Izin Usaha Pertambangan (“IUP”) sesuai dengan Undang-Undang, paling lambat 11 Januari 2010.

• KPs in force at the time the new Mining Law was enacted will remain valid until the expiration of the KP but must be converted to a Mining Business Licence (Izin Usaha Pertambangan or “IUP” - the mining licence under the Law) by 11 January 2010 at the latest.

• Tata cara penerbitan IUP akan diterbitkan oleh DJMBP (diasumsikan melalui peraturan pelaksana Undang-Undang No. 4/2009).

• The procedures for IUP issuance will be issued by the DGMCG (presumably through the upcoming implementing regulations for Law No. 4/2009).



PT INDO TAMBANGRAYA MEGAH TBK. DAN ANAK PERUSAHAAN/AND SUBSIDIARIES Lampiran 5/79 Schedule CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2011 dan 2010 (Dinyatakan dalam ribuan Dolar AS, kecuali dinyatakan lain) 24. KOMITMEN (lanjutan) l.

DAN

Undang-Undang (lanjutan)

LIABILITAS Pertambangan

KONTINJENSI No.

4/2009

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 AND 2010 (Expressed in thousand US Dollars, unless otherwise stated) 24. COMMITMENTS AND CONTINGENT LIABILITIES (continued) l.

Mining Law No. 4/2009 (continued)

• Semua pemilik KP eksplorasi dan eksploitasi diwajibkan untuk menyerahkan rencana aktivitas seluruh KP hingga berakhirnya jangka waktu KP, paling lambat enam bulan setelah disahkannya Undang-Undang, yaitu 11 Juli 2009.

• All existing exploration and exploitation KP holders are required to deliver an activities plan for the whole KP area covering the period until expiration of the KP term, at the latest within six months of the enactment of the new Mining Law, i.e. by 11 July 2009.

Pada bulan Februari 2010, Pemerintah Indonesia mengeluarkan dua peraturan implementasi atas Undang-Undang Mineral No. 4/2009, yaitu Peraturan Pemerintah No. 22/2010 dan 23/2010 (“PP No. 22” dan “PP No. 23”). PP No. 22 mengatur tentang pembentukan area pertambangan melalui sistem IUP yang baru. PP No. 23 memperjelas prosedur untuk memperoleh IUP. PP No. 23 menyatakan bahwa PKP2B yang ada akan tetap diakui oleh Pemerintah, namun demikian perpanjangan atas PKP2B tersebut akan dilakukan melalui penerbitan IUP. PP No. 23 juga mewajibkan agar KP diubah menjadi IUP dalam jangka waktu tiga bulan sejak diterbitkannya PP No. 23.

In February 2010, the Government of Indonesia released two implementing regulations for Mining Law No. 4/2009, i.e. Government Regulations Nos. 22/2010 and 23/2010 (“GR No. 22” and “GR No. 23”). GR No. 22 deals with the establishment of mining areas under the new IUP system. GR No. 23 provides clarifications surrounding the procedures to obtain new IUPs. GR No. 23 indicates that existing CCAs will be honoured by the Government although any extension of existing CCAs will be through the issuance of an IUP. GR No. 23 also requires a KP to be converted into an IUP within three months of the issuance of GR No. 23.

Pada tanggal 10 Januari 2012, Presiden Republik Indonesia mengeluarkan Keputusan Presiden (Keppres No.3/2012) tentang Tim Evaluasi untuk penyesuaian Kontrak Karya dan PKP2B. Tim Evaluasi (Tim) akan dipimpin oleh Menteri Koordinator Bidang Perekonomian dan didampingi oleh Menteri Energi dan Sumber Daya Alam untuk aktivitas harian. Selain itu, Tim juga dibantu oleh anggota kabinet lainnya (Menteri Keuangan, Menteri Hukum dan Hak Asasi Manusia, Menteri Kehutanan, Badan Koordinasi Penanaman Modal, dan lain-lain).

On 10 January 2012, the President issued a Presidential Decree (Keppres No.3/2012) on Evaluation Team for Contract of Work (“COW”) and CCA Adjustment. The Evaluation Team ("Team") will be chaired by the Coordinating Minister of Economy and co-chaired by Minister of Energy and Mineral Resources of for its daily activities, and the members consists of current Cabinet Members (Ministry of Finance, Ministry of Justice and Human Rights, Ministry of Forestry, Indonesia Investment Coordinating Board, et al).

Tugas tim meliputi: (1) melakukan evaluasi terhadap ketentuan-ketentuan yang tercantum dalam pasalpasal Kontrak Karya dan PKP2B, yang perlu disesuaikan dengan ketentuan yang berlaku; (2) menetapkan langkah-langkah yang diperlukan untuk menetapkan luas wilayah kerja Kontrak Karya dan PKP2B dan penerimaan negara, sebagai bagian negosiasi Kontrak Karya dan PKP2B; dan (3) menetapkan langkah-langkah yang diperlukan untuk pelaksanaan kewajiban pemegang Kontrak Karya dan PKP2B, terhadap pengolahan dan/atau pemurnian mineral dan batubara.

The Team's task consists of the following: (1) evaluating the articles in the COW and CCA to be in compliance with the Law; (2) determine the steps to be taken to determining COW and CCA areas and state income/revenue for the purpose of COW and CCA negotiation; (3) determine steps to be taken for the implementation of the COW and CCA holder‟s obligations, on the processing and/or refinery of mineral and coal.

Grup sedang menganalisa dampak dari peraturan ini terhadap operasinya, dan berkeyakinan bahwa tidak akan ada dampak yang signifikan dalam waktu dekat. Grup telah mengubah seluruh Izin KP-nya menjadi IUP lebih lanjut dan terus menggunakan ketentuan yang ada dalam kontrak PKP2B sambil menunggu implementasi undang-undang dan peraturan ini.

The Group is analysing the impact of this regulation on its operations, and believes that there will be no significant impact in the near term. The Group has converted all of its KP license into IUP and continued using the stipulations specified in the CCA contract while awaiting further implementation of this laws and regulation.


PT INDO TAMBANGRAYA MEGAH TBK. DAN ANAK PERUSAHAAN/AND SUBSIDIARIES Lampiran 5/80 Schedule CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2011 dan 2010 (Dinyatakan dalam ribuan Dolar AS, kecuali dinyatakan lain) 24. KOMITMEN (lanjutan)

DAN

LIABILITAS

KONTINJENSI

m. Peraturan Menteri No. 34/2009

n.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 AND 2010 (Expressed in thousand US Dollars, unless otherwise stated) 24. COMMITMENTS AND CONTINGENT LIABILITIES (continued) m. Ministerial Regulation No. 34/2009

Pada bulan Desember 2009, Menteri Energi dan Sumber Daya Mineral mengeluarkan Peraturan Menteri No. 34/2009 yang mewajibkan perusahaan pertambangan untuk menjual sebagian hasil produksinya kepada pelanggan domestik (“Domestic Market Obligation” atau “DMO”). Sesuai dengan Keputusan Menteri Energi dan Sumber Daya Mineral No. 2360/K/30/MEM/2010, persentase batas minimal DMO untuk tahun 2011 adalah 24,17%.

In December 2009, the Minister of Energy and Mineral Resources issued Ministerial Regulation No. 34/2009, which provides a legal framework to require mining companies to sell a portion of their output to domestic customers (“Domestic Market Obligation” or “DMO”). According to Ministerial Decree No. 2360/K/30/MEM/2010, the minimum DMO percentage for 2011 was 24.17%.

Peraturan Menteri ini menyediakan sistem „cap and trade' dimana perusahaan pertambangan yang melebihi kewajiban DMO dapat menjual/mentransfer kredit DMO untuk perusahaan pertambangan lain yang tidak dapat memenuhi komitmen DMO. Mekanisme penetapan harga untuk kredit DMO akan ditentukan berdasarkan ketentuan komersial. Mekanisme perdagangan kredit DMO telah diklarifikasi dalam Surat Edaran No. DJMBP 5055/30/DJB/2010 tanggal 29 November 2010, yang mengatur bahwa kredit DMO dapat ditransfer antar perusahaan pertambangan dengan persetujuan Direktorat Jenderal Mineral, Batubara dan Panas Bumi, termasuk kredit yang dimiliki oleh pedagang atas nama perusahaan pertambangan.

This regulation provides for a „cap and trade‟ system whereby mining companies that exceed their DMO obligations may sell/transfer DMO credits to a mining company that is unlikely to meet its DMO commitment. The pricing mechanism for DMO credits is to be determined on commercial terms. The mechanism for trading DMO credits has been clarified in Circular Letter of DGMCG No. 5055/30/DJB/2010 dated 29 November 2010, which provides that DMO credits can be transferred between mining companies with the approval of the Directorate General of Minerals, Coal and Geothermal, including credits held by traders on behalf of a mining company.

Selama tahun 2011, Grup telah melakukan pembelian kredit DMO dari perusahaan pertambangan lainnya untuk memenuhi DMO tahun 2011 yang dipersyaratkan oleh Pemerintah.

During 2011, the Group bought DMO credits from other mining companies to fulfill its 2011 DMO which required by the Government.

Peraturan Menteri No. 28/2009 Pada bulan September 2009, Menteri Energi dan Sumber Daya Mineral mengeluarkan Peraturan Menteri No. 28/2009, yang salah satu isinya mengatur mengenai kewajiban perusahaan pemegang IUP/IUPK („Ijin Usaha Pertambangan Khusus”) untuk melakukan sendiri kegiatan penambangan, pengolahan dan pemurnian batubara. Ketentuan penting lainnya adalah memperketat penggunaan perusahaan afiliasi atau anak perusahaan sebagai penyedia jasa kontraktor pertambangan dan mengharuskan persetujuan pemerintah untuk penggunaan perusahan afiliasi sebagai jasa kontraktor pertambangan. Peraturan tersebut memberikan pengecualian hanya apabila tidak terdapat perusahaan kontraktor pertambangan yang mampu di lokasi tersebut. Peraturan tersebut menyediakan masa transisi selama tiga tahun untuk perubahan terhadap perjanjian yang berlaku saat ini. Grup sedang mempertimbangkan dampak dari peraturan tersebut oleh karena KTD menyediakan jasa kontraktor pertambangan kepada perusahaan lain dalam Grup.


n.

Ministerial Regulation No. 28/2009 In September 2009, the Minister of Energy and Mineral Resources issued Ministerial Regulation No. 28/2009 which, among others, sets the obligation of an IUP/IUPK (“Special Mining Business Licence”) holder company to conduct coal getting, processing and refining on its own. Another important provision in this regulation is to strict criteria for mining companies use of 'Affiliates' or 'Subsidiaries' as their mining contractors and requires government approval to use an affiliate as a mining contractor. The regulation provides exceptions only when no other capable mining service companies operate in the area. The regulation provides a three year transition period for changes to existing arrangements. The Group is currently considering the implications of this regulation, given that KTD provides mining services to other members of the Group.


PT INDO TAMBANGRAYA MEGAH TBK. DAN ANAK PERUSAHAAN/AND SUBSIDIARIES Lampiran 5/81 Schedule CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2011 dan 2010 (Dinyatakan dalam ribuan Dolar AS, kecuali dinyatakan lain) 24. KOMITMEN DAN LIABILITAS KONTINJENSI (lanjutan) o.

p.

Peraturan Pemerintah No. 78/2010

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 AND 2010 (Expressed in thousand US Dollars, unless otherwise stated) 24. COMMITMENTS AND CONTINGENT LIABILITIES (continued) o.

Government Regulation No. 78/2010

Pada tanggal 20 Desember 2010, Pemerintah Indonesia mengeluarkan peraturan implementasi atas Undang-Undang Mineral No. 4/2009, yaitu Peraturan Pemerintah No. 78/2010 (“PP No. 78”) yang mengatur aktivitas reklamasi dan pasca tambang untuk pemegang IUP-Eksplorasi dan IUPOperasi Produksi. Peraturan ini memperbarui Peraturan Menteri No. 18/2008 yang dikeluarkan oleh Menteri Energi Sumber Daya Mineral pada tanggal 29 Mei 2008.

On 20 December 2010, the Government of Indonesia released an implementing regulation for Mining Law No. 4/2009, i.e. Government Regulation No. 78/2010 (“GR No. 78”) that deals with reclamation and post-mining activities for both IUP-Exploration and IUP-Production Operation holders. This regulation updates Ministerial Regulation No. 18/2008 issued by the Minister of Energy and Mineral Resources on 29 May 2008.

Pemegang IUP-Eksplorasi, ketentuannya antara lain, harus memuat rencana eksplorasi didalam rencana kerja dan anggaran biaya ekplorasinya dan menyediakan jaminan reklamasi berupa deposito berjangka yang ditempatkan pada bank pemerintah.

An IUP-Exploration holder, among other requirements, must include a reclamation plan in its exploration work plan and budget and provide a reclamation guarantee in the form of a time deposit placed at a state-owned bank.

Pemegang IUP-Operasi Produksi, ketentuannya antara lain, harus menyiapkan (1) rencana reklamasi lima tahunan; (2) rencana pasca tambang; (3) menyediakan jaminan reklamasi yang dapat berupa rekening bersama atau deposito berjangka yang ditempatkan pada bank pemerintah, bank garansi, atau cadangan akuntansi (bila diizinkan); dan (4) menyediakan jaminan pasca tambang berupa deposito berjangka yang ditempatkan di bank pemerintah.

An IUP-Production Operation holder, among other requirements, must prepare (1) a five-year reclamation plan; (2) a post-mining plan; (3) provide a reclamation guarantee which may be in the form of a joint account or time deposit placed at a state-owned bank, a bank guarantee, or an accounting provision (if eligible); and (4) provide a post-mine guarantee in the form of a time deposit at a state-owned bank.

Penempatan jaminan reklamasi dan jaminan pasca tambang tidak menghilangkan kewajiban pemegang IUP dari ketentuan untuk melaksanakan aktivitas reklamasi dan pasca tambang.

The requirement to provide reclamation and postmine guarantees does not release the IUP holder from the requirement to perform reclamation and post-mine activities.

Ketentuan peralihan didalam PP No. 78 menegaskan bahwa para pemegang PKP2B juga wajib mematuhi peraturan ini.

The transitional provisions in GR No. 78 make it clear that CCA holders are also required to comply with this regulation.

Pada tanggal laporan keuangan ini, IMM, TCM, KTD, JBG dan Bharinto telah membuat jaminan reklamasi dalam bentuk bank garansi. Grup sedang dalam proses untuk mendapatkan persetujuan rencana tutup tambang dari Pemerintah untuk IMM, TCM, KTD, JBG dan Bharinto, dan akan menentukan apakah penempatan deposito berjangka dibutuhkan untuk mendanai kewajiban-kewajiban ini.

As at the date of these financial statements, IMM, TCM, KTD, JBG and Bharinto have placed reclamation guarantees in the form of bank guarantees.The Group is in the process of obtaining Government approval for the mine closure plans prepared by IMM, TCM, KTD, JBG and Bharinto, and will determine whether time deposits are required to fund these obligations.

Peraturan Menteri No. 17/2010 Pada tanggal 23 September 2010, Menteri Energi dan Sumber Daya Mineral mengeluarkan Peraturan Menteri No. 17/2010 yang menjelaskan mekanisme untuk menentukan Indonesian Minerals and Coal Benchmark Price ("IMCBP"), sebagai salah satu peraturan pelaksana UU No. 4/2009. Peraturan ini berlaku efektif pada tanggal 23 September 2010.

p.

Ministerial Regulation No. 17/2010 On 23 September 2010, the Minister of Energy and Mineral Resources issued Ministerial Regulation No. 17/2010 outlining the mechanism for determining the Indonesian Minerals and Coal Benchmark Price (“IMCBP”), as one of the implementing regulations to the Mining Law No. 4/2009. It is effective on 23 September 2010.


PT INDO TAMBANGRAYA MEGAH TBK. DAN ANAK PERUSAHAAN/AND SUBSIDIARIES Lampiran 5/82 Schedule CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2011 dan 2010 (Dinyatakan dalam ribuan Dolar AS, kecuali dinyatakan lain) 24. KOMITMEN DAN LIABILITAS KONTINJENSI (lanjutan) p.

Peraturan Menteri No. 17/2010 (lanjutan)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 AND 2010 (Expressed in thousand US Dollars, unless otherwise stated) 24. COMMITMENTS AND CONTINGENT LIABILITIES (continued) p.

Ministerial Regulation No. 17/2010 (continued)

Peraturan Menteri No. 17/2010 mengatur antara lain:

Ministerial Regulation among others:

•

•

the use of the average mineral/coal price from international market indices and the use of free-on-board (“FOB”) mother vessel as the sale point to determine the IMCBP;

•

the acceptance of certain costs as adjustments to the IMCBP (if the actual sale point is not FOB mother vessel); and

•

the use of a “floor" price approach (i.e. IMCBP vs. actual sales price, whichever higher, for the Non-Tax State Revenue calculation (e.g. royalty or exploitation fee).

•

•

penggunaan harga rata-rata mineral/batubara dari indeks pasar internasional dan penggunaan free-on-board ("FOB"), kapal induk sebagai titik penjualan untuk menentukan IMCBP; penerimaan beban tertentu sebagai penyesuaian untuk IMCBP (jika titik penjualan FOB yang sebenarnya bukan kapal induk); dan penggunaan pendekatan harga dasar (yaitu harga jual IMCBP vs harga jual aktual, mana yang lebih tinggi, untuk perhitungan Penerimaan Negara (contoh: royalti atau biaya eksploitasi).

No.

17/2010

governs

Peraturan ini juga mengharuskan perusahaan pertambangan untuk:

This regulation also requires mining companies to:

•

menggunakan kapal/perahu Indonesia untuk mineral/batubara;

berbendera mengangkut

•

use Indonesian flagged ships/vessels to transport minerals/coal;

•

mengutamakan penggunaan perusahaan asuransi nasional dimana syarat adopsi CIF digunakan; dan

•

prioritise the use of a national insurance company where CIF sale terms are adopted; and

•

menggunakan surveyor yang ditunjuk oleh Direktorat Jenderal Mineral, Batubara dan Panas Bumi.

•

use surveyors appointed by the Directorate General of Minerals, Coal and Geothermal.

Peraturan Menteri No. 17/2010 memberikan masa transisi untuk merubah kontrak spot penjualan sampai dengan 22 Maret 2011 dan kontrak penjualan jangka panjang sampai dengan 22 September 2011.

Ministerial Regulation No. 17/2010 provides a transitional period until 22 March 2011 for spot sales contracts and 22 September 2011 for term sales contracts.

Menyusul diterbitkannya peraturan tersebut, pada tanggal 24 Maret 2011, DJMBP menerbitkan peraturan No. 515.K/32/DJB/2011 yang berisi tentang mekanisme perhitungan Coal Benchmark Price untuk kontrak spot dan penjualan berjangka.

Following the issuance of the regulation, on 24 March 2011, the DGMCG issued regulation No. 515.K/32/DJB/2011 outlining the formula mechanism of Coal Benchmark Price for spot and term sales contracts.

DJMBP akan menentukan dan memperbarui Coal Benchmark Price bulanan untuk kontrak spot penjualan sesuai dengan harga pasar (berdasarkan pengakuan global dan indeks batubara Indonesia dalam kasus batu bara).

The DGMCG will determine and update the monthly Coal Benchmark Price for spot sales contracts in accordance with market prices (based on a basket of recognised global and Indonesian coal indices in the case of coal).



PT INDO TAMBANGRAYA MEGAH TBK. DAN ANAK PERUSAHAAN/AND SUBSIDIARIES Lampiran 5/83 Schedule CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2011 dan 2010 (Dinyatakan dalam ribuan Dolar AS, kecuali dinyatakan lain) 24. KOMITMEN DAN LIABILITAS KONTINJENSI (lanjutan) p.

q.

Peraturan Menteri No. 17/2010 (lanjutan)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 AND 2010 (Expressed in thousand US Dollars, unless otherwise stated) 24. COMMITMENTS AND CONTINGENT LIABILITIES (continued) p.

Ministerial Regulation No. 17/2010 (continued)

Untuk kontrak jangka panjang, harga penjualan batubara ditentukan berdasarkan rata-rata tertimbang dari Coal Benchmark Price untuk tiga bulan sebelumnya. Perusahaan pertambangan batubara diminta untuk memberitahu DJMBP tentang harga penjualan jangka panjang. Coal Benchmark Price berlaku untuk IUP-Operasi Produksi, IUPK-Operasi Produksi dan pemegang PKP2B.

For long term contracts, the coal sales price is determined based on the weighted average of the Coal Benchmark Price for the preceding three months. A coal mining company is required to notify the DGMCG of the proposed sales price before signing long term sales agreements. The Coal Benchmark Price is valid for IUP-Production Operation, IUPK-Production Operation and CCA holders.

Dalam menentukan harga jual, Grup telah mengikuti ketentuan PP No. 17/2010 terkait Coal Benchmark Price tersebut.

In determining the coal sales price, the Group has followed the requirement of GR No.17/2010 related to Coal Benchmark Price.

Peraturan Pemerintah No. 9/2012

q.

Government Regulation No. 9/2012

Pada tanggal 6 Januari 2012, Pemerintah Indonesia mengeluarkan peraturan mengenai penerimaan negara bukan pajak No. 9/2012 yang menggantikan peraturan No. 45/2003.

On 6 January 2012, the Government of Indonesia released a regulation for non-tax state revenue GR No.9/2012 which replaced previous regulation GR No.45/2003.

Peraturan ini memberikan penjelasan mengenai iuran eksploitasi dari bisnis logam mineral dan komoditas batubara yang sebelumnya tidak diatur oleh Peraturan Pemerintah No. 45/2003. Sebagai tambahan, peraturan ini juga memberikan arahan untuk imbalan tetap lainnya terkait dengan aktivitas logam mineral dan komoditas batubara dan imbalan lainnya yang tidak terkait dengan komoditas seperti kompensasi untuk informasi terkait dengan IUP dan IUPK area eksplorasi, biaya apenggantian untuk penambangan batubara tertutup dan porsi bagian Pemerintah (4%) dari pemegang IUPK-Operasi Produksi berdasarkan pendapatan bersihnya.

This regulation provides clarification for obligation fees on metal mineral and coal commodities business which previously has not been set in GR No.45/2003. In addition, it also provides guidelines on other fixed fees related to metal mineral and coal mines activities and other fees which are not related to commodities such as compensation for information related to IUP and IUPK exploration areas, replacement costs for closed coal mines and portion of the Government‟s share (4%) from IUPKProduction Operation holders based on its net income.

Tidak ada perubahan dari tarif iuran eksploitasi yang akan dikenakan kepada KTD sebagai pemegang IUP sebagai dampak dari penerapan regulasi ini (masih sebesar 3% sampai 7% berdasarkan kualitas batubara terjual). Pemegang Kontrak Karya diperkirakan akan melanjutkan penggunaan tarif sesuai kontrak.

There is no change of exploitation fee rate for KTD as an IUP holder in the Group based on the new regulation (ranging from 3% to 7% depending on coal quality). The CoW holder is expected to continue using the rate specified in the contract.


PT INDO TAMBANGRAYA MEGAH TBK. DAN ANAK PERUSAHAAN/AND SUBSIDIARIES Lampiran 5/84 Schedule CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2011 dan 2010 (Dinyatakan dalam ribuan Dolar AS, kecuali dinyatakan lain) 24. KOMITMEN DAN LIABILITAS KONTINJENSI (lanjutan) r.

Lain-lain

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 AND 2010 (Expressed in thousand US Dollars, unless otherwise stated) 24. COMMITMENTS AND CONTINGENT LIABILITIES (continued) r.

Others

Berdasarkan ketentuan PKP2B, Bharinto diharuskan mengeluarkan dana sebesar US$10 (nilai penuh) per hektar untuk aktivitas eksplorasi sesuai area kontrak (22.000 hektar) selama periode eksplorasi. Jika, setelah 36 bulan dari tanggal dimulainya periode eksplorasi, Bharinto belum memenuhi kewajibannya atas pengeluaran minimum, Menteri Energi dan Sumber Daya Mineral dapat mewajibkan Bharinto untuk memberikan jaminan sebesar jumlah yang tidak melebihi kewajiban pengeluaran yang masih harus dilakukan. Jaminan tersebut, pada akhir periode eksplorasi, dapat digunakan sebagai pembayaran denda kepada Pemerintah apabila Bharinto gagal memenuhi kewajiban pengeluaran. Manajemen berpendapat bahwa Bharinto telah memenuhi kewajiban ini karena saat ini jumlah pengeluaran telah melebihi jumlah minimum yang diharuskan.

Bharinto is required under its Coal Agreement to spend a minimum of US$10 (full amount) per hectare on exploration activities with respect to the Contract Area (22,000 hectares) during the exploration period. If, after 36 months from the date of commencement of the exploration period, Bharinto has not met its obligations with respect to minimum expenditures, the Ministry of Energy and Mineral Resources may require Bharinto to deliver a guarantee of an amount not exceeding the total outstanding expenditure obligations. The guarantee may, at the end of the exploration period, be forfeited to the Government to the extent that Bharinto has failed to fulfill such expenditure obligations. Management believes that it has met the obligations since the expenditures to date have exceeded the minimum amounts.

Pada tanggal 31 Desember 2011, Bharinto belum membuat penyisihan untuk penutupan tambang karena belum memasuki tahap produksi.

As at 31 December 2011, Bharinto has not made any provision for mine closure as it has not yet entered the production stage.

25. INFORMASI SEGMEN USAHA

25. SEGMENT REPORTING

Berdasarkan informasi keuangan yang digunakan oleh pengambil keputusan operasional dalam mengevaluasi kinerja segmen dan menentukan alokasi sumber daya yang dimilikinya, manajemen menetapkan segmen Grup berdasarkan aktivitas per entitas. Seluruh transaksi antar segmen telah dieliminasi.

Based on the financial information used by the chief operating decision-maker in evaluating the performance of segments and in the allocation of resources, management considers the Group‟s segments based on each entity‟s activities. All transactions between segments have been eliminated.

Informasi menurut segmen usaha yang merupakan segmen primer adalah sebagai berikut:

Information concerning the business segments which are considered the primary segments is as follows:



PT INDO TAMBANGRAYA MEGAH TBK. DAN ANAK PERUSAHAAN/AND SUBSIDIARIES Lampiran 5/85 Schedule CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2011 dan 2010 (Dinyatakan dalam ribuan Dolar AS, kecuali dinyatakan lain) 25. INFORMASI SEGMEN USAHA (lanjutan)

Pendapatan jasa: Di luar segmen Antar segmen Penjualan bersih Laba kotor Beban penjualan

25. SEGMENT REPORTING (continued)

31 Desember/December 2011 (12 bulan/months) Segmen lainnya/ Perusahaan/ Other Eliminasi/ Konsolidasi/ TCM KTD the Company segments Elimination Consolidation

IMM Penjualan batubara: Di luar segmen Antar segmen


1,739,367 7,131

527,083 288,285

6,794 146,474

-

97,230 8,245

(450,135) -

1,920,339 450,135

Coal sales: External Inter-segment

11,401 -

-

66,065

23,261

-

(89,326)

11,401 -

Service income: External Inter-segment

1,757,899

815,368

219,333

23,261

105,475

(539,461)

2,381,875

Net sales

497,852

302,511

71,045

23,261

18,951

(21,552)

892,068

Gross profit

-

-

-

-

-

-

(99,374)


-

-

-

-

-

-

(85,779)

Selling expenses General and administration expenses

Laba usaha

-

-

-

-

-

-

706,915

Operating income

Biaya keuangan Pendapatan keuangan Pendapatan lain-lain, bersih

-

-

-

-

-

-

(1,922) 6,606

Finance cost Finance income

-

-

-

-

-

-

18,339

Other income, net

Laba sebelum pajak penghasilan

-

-

-

-

-

-

729,938

Income before income tax


-

-

-

-

-

-

(183,812)

Laba bersih yang dapat diatribusikan kepada pemilik Perusahaaan

-

As at 31 Desember/December 2011 Aset segmen 605,049 Liabilitas segmen 307,704 Perolehan aset tetap 11,940

-

-

-

-

281,145 135,110

198,524 105,746

674,500 16,038

103,799 113,540

11,431

15,794

1,863

8,443

Untuk tahun yang berakhir pada 31 Desember 2011/For the year ended 31 December 2011 Penyusutan 25,409 10,877 11,945 447 2,942 Amortisasi 293 2,521 6,590 727 415

(284,543) (180,468)

Income tax expense

Net income attributable to the owners of the 546,126 Company 1,578,474 497,670

Segment assets Segment liabilities

-

49,471

Capital expenditure

-

51,620 10,546

Depreciation Amortisation


PT INDO TAMBANGRAYA MEGAH TBK. DAN ANAK PERUSAHAAN/AND SUBSIDIARIES Lampiran 5/86 Schedule CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2011 dan 2010 (Dinyatakan dalam ribuan Dolar AS, kecuali dinyatakan lain) 25. INFORMASI SEGMEN USAHA (lanjutan)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 AND 2010 (Expressed in thousand US Dollars, unless otherwise stated) 25. SEGMENT REPORTING (continued)

31 Desember/December 2010 (12 bulan/months)

TCM

IMM Penjualan batubara: Di luar segmen Antar segmen

Segmen lainnya/ Perusahaan/ Other the Company segments

KTD

Eliminasi/ Konsolidasi/ Elimination Consolidation

1,243,647 39,165

333,223 206,803

20,210 66,875

-

37,583 3,769

(316,612) -

1,318,051 316,612

Coal sales: External Inter-segment

9,987 -

-

104,637

16,943

-

(121,580)

9,987 -

Service income: External Inter-segment

1,292,799

540,026

191,722

16,943

41,352

(438,192)

1,644,650

Net sales

292,643

170,499

40,376

16,942

7,715

(10,122)

518,053

Gross profit

Beban penjualan

-

-

-

-

-

-

(75,844)


-

-

-

-

-

-

(79,301)

Selling expenses General and administration expenses

Laba usaha

-

-

-

-

-

-

362,908

Operating income

Biaya keuangan Pendapatan keuangan Pendapatan lain-lain, bersih

-

-

-

-

-

-

(3,242) 5,421

Finance cost Finance income

-

-

-

-

-

-

(87,733)

Other income, net

Laba sebelum pajak penghasilan

-

-

-

-

-

-

277,354


-

-

-

-

-

-

(73,203)

-

Net income attributable to the owners of the 204,151 Company

Pendapatan jasa: Di luar segmen Antar segmen Penjualan bersih Laba kotor

Laba bersih yang dapat diatribusikan kepada pemilik Perusahaaan

-

As at 31 Desember/December 2010 Aset segmen 435,673 Liabilitas segmen 273,898 Perolehan aset tetap 18,497

-

-

-

-

212,508 63,460

136,080 91,356

490,947 13,193

89,270 96,558

12,445

16,026

1,246

7,407

Untuk tahun yang berakhir pada 31 Desember 2010/For the year ended 31 December 2010 Penyusutan 20,790 11,427 10,860 233 2,716 Amortisasi 128 1,275 5,055 523 331

Informasi menurut segmen geografis yang merupakan segmen sekunder adalah sebagai berikut: 2011 Area penjualan - Domestik - Jepang - Asia Tenggara (kecuali Indonesia), India dan Pakistan - Eropa, Taiwan, Cina dan Korea

176,800 437,329 601,049 1,166,697 2,381,875


(274,772) (169,783)

Income before income tax Income tax expense

1,089,706 368,682

Segment assets Segment liabilities

-

55,621

Capital expenditure

-

46,026 7,312

Depreciation Amortisation

Geographical segment information as a secondary segment is as follows: 2010 Sales area Domestic Japan South East Asia(excluding 341,773 Indonesia), India and Pakistan 886,530 Europe, Taiwan, China and Korea 41,704 374,643

1,644,650




26. ASET DAN LIABILITAS MONETER DALAM MATA UANG ASING

26. MONETARY ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

Aset dan liabilitas moneter dalam mata uang Rupiah pada 31 Desember 2011 telah dikonversikan ke dalam mata uang Dolar AS dengan menggunakan kurs US$1 = Rp9.068 berdasarkan kurs tengah Bank Indonesia.

At 31 December 2011, monetary assets and liabilities denominated in Rupiah have been translated into US Dollars using an exchange rate of US$1 = Rp9,068 based on the Bank Indonesia middle rate.

Apabila aset dan liabilitas dalam mata uang asing pada tanggal 31 Desember 2011 dijabarkan dengan menggunakan kurs yang berlaku pada tanggal laporan ini, maka aset bersih dalam mata uang asing Grup akan naik sebesar US$352.

If assets and liabilities in foreign currencies as at 31 December 2011 are translated using the exchange rate as at the date of this report, the total net foreign currency assets of the Group will increase by approximately US$352.

Aset dalam mata uang selain Dolar AS/Assets denominated in currencies other than US Dollars Kas/Cash on hand Kas di bank/Cash in banks Deposito berjangka/Time deposits PPN dibayar dimuka/Prepaid VAT Piutang usaha/Trade receivables Jumlah aset dalam mata uang asing selain Dolar AS/Total assets denominated in currencies other than US Dollars

31 Desember /December 2011 Mata uang selain Dolar AS (nilai penuh)/ Setara US$ (dalam ribuan)/ Currencies other than US$ equivalent US Dollars (full amount) (in thousands)

Rupiah Indonesia/ Indonesian Rupiah Euro/Euro Rupiah Indonesia/ Indonesian Rupiah Rupiah Indonesia/ Indonesian Rupiah Rupiah Indonesia/ Indonesian Rupiah Rupiah Indonesia/ Indonesian Rupiah

9.04 milyar/billion 296.49 ribu/thousand

996 229

32.09 milyar/billion

3,539


74,882


9,660


53,977

143,283


PT INDO TAMBANGRAYA MEGAH TBK. DAN ANAK PERUSAHAAN/AND SUBSIDIARIES Lampiran 5/88 Schedule CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2011 dan 2010 (Dinyatakan dalam ribuan Dolar AS, kecuali dinyatakan lain) 26. ASET DAN LIABILITAS MONETER DALAM MATA UANG ASING (lanjutan)

Liabilitas dalam mata uang selain Dolar AS/Liabilities denominated in currencies other than US Dollars Hutang usaha/Trade payables Beban yang masih harus dibayar/Accrued expenses Hutang pajak/Taxes payable

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 AND 2010 (Expressed in thousand US Dollars, unless otherwise stated) 26. MONETARY ASSETS AND DENOMINATED IN FOREIGN (continued)

LIABILITIES CURRENCIES

31 Desember/December 2011 Mata uang selain Dolar AS (nilai penuh)/ Setara US$ (dalam ribuan)/ Currencies other than US Dollars US$ equivalent (full amount) (in thousands)

Rupiah Indonesia/ Indonesian Rupiah Rupiah Indonesia/ Indonesian Rupiah Rupiah Indonesia/ Indonesian Rupiah

3.36 milyar/billion

371

72.9 milyar/billion

8,174


10,198

Jumlah liabilitas dalam mata uang asing selain Dolar AS/Total liabilities denominated in currencies other than US Dollars

18,743

Aset bersih dalam mata uang asing/Net foreign currency assets

124,540

27. BIAYA KARYAWAN

27. EMPLOYEE COSTS 2011

Biaya karyawan

64,557

Pada tanggal 31 Desember 2011, Grup memiliki 3,335 karyawan (2010: 3.217 karyawan) − tidak diaudit.


2010 55,286

Employee costs

The Group has 3,335 employees as at 31 December 2011 (2010: 3,217employees) − unaudited.


PT INDO TAMBANGRAYA MEGAH TBK. DAN ANAK PERUSAHAAN/AND SUBSIDIARIES Lampiran 5/89 Schedule CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2011 dan 2010 (Dinyatakan dalam ribuan Dolar AS, kecuali dinyatakan lain) 28. ASET KEUANGAN DAN LIABILITAS KEUANGAN

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 AND 2010 (Expressed in thousand US Dollars, unless otherwise stated) 28. FINANCIAL ASSETS AND FINANCIAL LIABILITIES

Berikut ini adalah kategori aset dan liabilitas keuangan dari Grup:

Jumlah/ Total

The information given below relates to the Group‟s financial assets and liabilities by category:

Pinjaman dan piutang/ Loans and receivables

Nilai wajar diakui melalui laporan laba rugi/ Fair value through profit and loss

Derivatif yang digunakan untuk lindung nilai/ Derivatives used for hedging

Liabilitas keuangan lainnya/ Other financial liabilities

31 Desember/December 2011 Aset keuangan/Financial assets Kas dan setara kas/Cash and cash equivalents Piutang usaha/Trade receivables Piutang lain-lain/Other receivables Piutang derivatif/Derivative receivables

612,416 211,198 18,811 26,448

612,416 211,198 18,811 -

20,985

5,463

-

Jumlah aset keuangan/Total financial assets

868,873

842,425

20,985

5,463

-

-

-

(146,419)

Liabilitas keuangan/Financial liabilities Hutang usaha/Trade payables Beban yang masih harus dibayar/Accrued expenses Liabilitas derivatif/Derivative liabilities Liabilitas lain-lain/Other liabilities

(146,419)

-

(188,576) (1,449) (9,112)

-

(1,449) -

-

(188,576) (9,112)

Jumlah liabilitas keuangan/Total financial liabilities

(345,556)

-

(1,449)

-

(344,107)

31 Desember/December 2010 Aset keuangan/Financial assets Kas dan setara kas/Cash and cash equivalents Piutang usaha/Trade receivables Piutang lain-lain/Other receivables Piutang derivatif/Derivative receivables

294,569 121,062 12,879 18,225

294,569 121,062 12,879 -

18,225

-

-

Jumlah aset keuangan/Total financial assets

446,735

428,510

18,225

-

-

-

-

(94,783)

Liabilitas keuangan/Financial liabilities Hutang usaha/Trade payables Beban yang masih harus dibayar/Accrued expenses Liabilitas derivatif/Derivative liabilities Liabilitas lain-lain/Other liabilities

(94,783)

-

(150,130) (63,560) (12,128)

-

(48,946) -

(14,614) -

(150,130) (12,128)

Jumlah liabilitas keuangan/Total financial liabilities

(320,601)

-

(48,946)

(14,614)

(257,041)


PT INDO TAMBANGRAYA MEGAH TBK. DAN ANAK PERUSAHAAN/AND SUBSIDIARIES Lampiran 5/90 Schedule CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2011 dan 2010 (Dinyatakan dalam ribuan Dolar AS, kecuali dinyatakan lain) 29. MANAJEMEN RISIKO KEUANGAN a.

Faktor risiko keuangan

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 AND 2010 (Expressed in thousand US Dollars, unless otherwise stated) 29. FINANCIAL RISK MANAGEMENT a.

Financial risk factors

Berbagai aktivitas yang dilakukan membuat Grup terekspos terhadap berbagai risiko keuangan, termasuk dampak nilai tukar mata uang asing, tingkat harga komoditas dan tingkat suku bunga. Program manajemen risiko keseluruhan yang dimiliki Grup ditujukan untuk menghadapi ketidakpastian harga komoditas dan untuk meminimalkan dampak yang tidak diharapkan pada kinerja keuangan Grup.

The Group‟s activities expose it to a variety of financial risks, including the effects of foreign currency exchange rates, commodity prices and interest rates. The Group‟s overall risk management programme focuses on the unpredictability of commodity prices and seeks to minimise potential adverse effects on the financial performance of the Group.

Manajemen risiko dijalankan oleh Dewan Direksi Grup, khususnya Komite Manajemen Risiko (“Komite”). Komite melakukan identifikasi, evaluasi dan lindung nilai terhadap risiko-risiko keuangan, apabila dianggap perlu. Komite menentukan prinsip manajemen risiko secara keseluruhan, termasuk risiko pasar, kredit dan likuiditas.

Risk management is carried out by the Group‟s Board of Directors, and specifically the Risk Management Committee (the “Committee”). The Committee identifies, evaluates and hedges financial risks, where considered appropriate. The Committee provides principles for overall risk management, including market, credit, and liquidity risks.

(a) Risiko pasar

(a) Market risk

(i) Risiko mata uang asing

(i) Foreign exchange risk

Pendapatan, pendanaan dan sebagian besar biaya operasi dari Grup dilakukan dalam mata uang Dolar AS, oleh karena itu Grup tidak memiliki eksposur yang signifikan terhadap fluktuasi nilai tukar mata uang asing.

The Group‟s revenue, financing and the majority of its operating expenditures are denominated in US Dollars, and as such the Group does not have a significant exposure to fluctuations in foreign exchange rates.

Grup melakukan perikatan kontrak forward pembelian Rupiah untuk melindungi beban operasi di masa mendatang dalam mata uang Rupiah (lihat Catatan 21c).

The Group enters into Rupiah forward buy contracts to cover future operating expenses denominated in Rupiah (refer to Note 21c).

(ii) Risiko harga Grup terekspos terhadap perubahan harga batubara dan harga bahan bakar, namun demikian hal ini diatasi dengan melakukan lindung nilai terhadap sebagian penjualan batubara serta biaya bahan bakar minyak Grup. Operasi dan kinerja keuangan Grup dapat terpengaruh oleh turunnya harga batubara, yang juga tergantung pada permintaan dan penawaran batubara di dunia, harga minyak dan faktor-faktor lainnya. Grup secara aktif mengatur risikorisiko ini dan menyesuaikan jadwal produksi dan aktivitas penambangan yang diperlukan untuk mengatasi dampak volatilitas tersebut.


(ii) Price risk The Group is exposed to fluctuations in coal and fuel prices, however this is mitigated by the hedging contracts entered into for part of the Group‟s coal sales and fuel costs. The Group‟s operations and financial performance may be adversely affected by the price of coal, which in turn will be determined by worldwide coal supply and demand, oil price and other factors. The Group actively manages these risks and adjusts production schedules and mining operations as necessary to reduce the impact of volatility.


PT INDO TAMBANGRAYA MEGAH TBK. DAN ANAK PERUSAHAAN/AND SUBSIDIARIES Lampiran 5/91 Schedule CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2011 dan 2010 (Dinyatakan dalam ribuan Dolar AS, kecuali dinyatakan lain) 29. MANAJEMEN RISIKO KEUANGAN (lanjutan) a.

Faktor risiko keuangan (lanjutan)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 AND 2010 (Expressed in thousand US Dollars, unless otherwise stated) 29. FINANCIAL RISK MANAGEMENT (continued) a.

(a) Risiko pasar (lanjutan) (ii) Risiko harga (lanjutan) Grup melakukan kontrak swap batubara untuk melakukan lindung nilai terhadap fluktuasi harga batubara dengan lindung nilai maksimum sebesar 8.000.000 ton dengan jangka waktu maksimum 3 tahun. Jumlah pengadaan maksimum dalam ton adalah sebagai berikut:   

Jangka waktu/Tenor ≤ 1 tahun/year 1 tahun/year < jangka waktu/tenor ≤ 2 tahun/years 2 tahun/years < jangka waktu/tenor ≤ 3 tahun/years

Financial risk factors (continued) (a) Market risk (continued) (ii) Price risk (continued) The Group enters into coal swap contracts to hedge against the fluctuation in coal prices for maximum hedging amounts of 8,000,000 tonnes with a maximum tenor of 3 years. The maximum holding in tonnes is as follows: 4,400,000 ton/tonnes 4,000,000 ton/tonnes 1,700,000 ton/tonnes

Grup membatasi besaran dari setiap kontrak swap batubara sebesar maksimum 120.000 ton untuk setiap tahun kalender per transaksi atau maksimum 60.000 ton untuk setiap kuartal per transaksi.

The Group limits the size of each coal swap contract to a maximum of 120,000 tonnes for each calendar year per transaction or 60,000 tonnes for each quarter per transaction.

Grup melakukan kontrak lindung nilai minyak untuk mengantisipasi fluktuasi harga bahan bakar untuk 50%-80% dari estimasi penggunaan bahan bakar tahunan dengan jangka waktu maksimum 2 tahun. Kesepakatan harga maksimum adalah 120.000 barel per setiap tahun kalender per transaksi atau 60.000 barel per setiap tahun kuartal per transaksi.

The Group enters into oil hedge contracts to hedge against the fluctuation in fuel prices for 50%-80% of estimated annual fuel usage with a maximum tenor of 2 years. Maximum deal price is 120,000 barrels per calendar year per transaction or 60,000 barrels per quarter per transaction.

(iii) Risiko suku bunga

(iii) Interest rate risk

Eksposur Grup terhadap suku bunga rendah apabila ditinjau dari laporan posisi keuangan, namun Grup terus memonitor hal ini untuk meminimalkan dampak negatif terhadap Grup.

The Group‟s interest rate exposure is minimal due to the statement of financial position, however, the Group monitors to minimise any negative impact to the Group.

Tabel berikut ini merupakan rincian dari aset keuangan dan liabilitas keuangan Grup yang dipengaruhi oleh suku bunga:

The following table represents a breakdown of the Group‟s financial assets and financial liabilities which are impacted by interest rates:



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 AND 2010 (Expressed in thousand US Dollars, unless otherwise stated) 29. FINANCIAL RISK MANAGEMENT (continued)


a.

(a) Risiko pasar (lanjutan)

Financial risk factors (continued) (a) Market risk (continued) (iii) Interest rate risk (continued)

(iii) Risiko suku bunga (lanjutan)

31 Desember/December 2011 Suku bunga mengambang/ Suku bunga tetap/ Floating rate Fixed rate

Aset/Assets Kas dan setara kas/ Cash and cash equivalents Piutang usaha/ Trade receivables Piutang lain-lain/ Other receivables Piutang derivatif/ Derivative receivables Jumlah aset keuangan/ Total financial assets

Non bunga/ Non interest bearing

Kurang dari satu tahun/ Less than one year

Lebih dari satu tahun/ More than one year

Kurang dari satu tahun/ Less than one year

Lebih dari satu tahun/ More than one year

64,712

-

545,972

-

1,732

612,416

-

-

-

-

211,198

211,198

-

-

-

-

18,811

18,811

-

-

-

-

26,448

26,448

64,712

-

545,972

-

258,189

868,873

-

-

-

-

146,419

146,419

-

-

-

-

188,576

188,576

Jumlah/ Total

Liabilitas/Liabilities Hutang usaha/ Trade payables Beban yang masih harus dibayar/Accrued expenses Liabilitas derivatif/ Derivative liabilities Liabilitas lain-lain/ Other liabilities

-

-

-

-

1,449

1,449

-

-

-

-

9,112

9,112

Jumlah liabilitas keuangan/ Total financial liabilities

-

-

-

-

345,556

345,556




Faktor risiko keuangan (lanjutan) (b) Risiko kredit


Financial risk factors (continued) (b) Credit risk

Pada tanggal 31 Desember 2011, jumlah maksimum eksposur dari risiko kredit adalah US$867.141. Risiko kredit terutama berasal dari penjualan batubara dengan memberikan kredit, deposito berjangka dan transaksi swap bahan bakar dan kontrak forward dengan nilai pasar positif.

At 31 December 2011, total maximum exposure from credit risk is US$867,141. Credit risk arises from sales of coal under credit terms, cash in banks, time deposits, other receivables and favourable fuel swap transactions and forward contracts.

Kebijakan umum Grup untuk penjualan batubara ke pelanggan baru dan yang sudah ada adalah sebagai berikut: - Menyeleksi pelanggan-pelanggan yang memiliki kondisi keuangan yang kuat serta reputasi yang baik. - Penerimaan pelanggan baru dan penjualan batubara disetujui oleh karyawan yang berwenang sesuai dengan pedelegasian wewenang yang ditetapkan oleh Grup.

The Group‟s general policies for coal sales to new and existing customers are as follows:

Pada tanggal 31 Desember 2011, Grup mempunyai 6 pelanggan (2010: 3 pelanggan) dengan masing-masing nilai piutang lebih dari tersebut US$10 juta, piutang-piutang merupakan 54% (2010: 35%) dari jumlah semua saldo piutang. Terdapat 10 pelanggan (2010: 9 pelanggan) dengan saldo masingmasing diantara US$5 dan US$10 juta yang merupakan 35% (2010: 49%) dari jumlah piutang pada tanggal 31 Desember 2011. Grup tidak mengambil agunan sebagai jaminan atas piutang usaha.

At 31 December 2011, the Group had 6 customers (2010: 3 customers) that owed the Group more than US$10 million each and these balances accounted for 54% (2010: 35%) of all receivables owing. There were 10 customers (2010: 9 customers) with balances between US$5 and US$10 million accounting for approximately 35% (2010: 49%) of the total trade receivables at 31 December 2011. The Group does not hold collateral as security for any trade receivables.

Manajemen menggunakan lembaga-lembaga keuangan ternama untuk transaksi swap batubara dan bahan bakar minyak. Penggunaan lembaga-lembaga keuangan ini harus disetujui terlebih dahulu oleh Dewan Direksi.

For coal and fuel swaps and oil hedging transactions, management uses reputable financial institutions as the counterparty. These financial institutions are pre-approved by the Board of Directors.

Manajemen yakin akan kemampuannya untuk terus mengontrol dan mempertahankan eksposur minimal terhadap resiko kredit mengingat Grup memiliki kebijakan yang jelas dalam pemilihan pelanggan, menggunakan perjanjian yang berkekuatan hukum pada saat melakukan transaksi penjualan batubara, dan sejarah tingkat kredit macet yang rendah.

Management is confident in its ability to continue to control and sustain minimal exposure to credit risk given that the Group has clear policies on selection of customers, legally binding agreements in place for coal sales transactions and historically low levels of bad debts.

-

Selecting customers with strong financial condition and good reputation.

-

Acceptance of new customers and sales of coal are approved by the authorised personnel according to the Group‟s delegation of authority





(c) Risiko likuiditas

(c) Liquidity risk Liquidity risk arises in situations where the Group has difficulties in obtaining funding. Prudent liquidity risk management implies maintaining sufficient cash and cash equivalents. The Group manages liquidity risk by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.

Risiko likuiditas muncul dalam situasi Grup kesulitan memperoleh pendanaan. Kebijakan manajemen risiko likuiditas yang berhati-hati dilakukan dengan menjaga kecukupan kas dan setara kas. Grup mengelola risiko likuiditas dengan memonitor perkiraan arus kas dan arus kas aktual serta menyesuaikan profil jatuh tempo dari aset dan liabilitas keuangan. b.

Manajemen risiko permodalan

Financial risk factors (continued)

b.

Capital risk management

Tujuan grup dalam pengelolaan permodalan adalah untuk mempertahankan kelangsungan usaha Grup guna memberikan imbal hasil kepada pemegang saham dan manfaat kepada pemangku kepentingan lainnya serta menjaga struktur modal yang optimal untuk mengurangi biaya modal.

The Group‟s objectives when managing capital are to safeguard the Group‟s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

Untuk mempertahankan atau menyesuaikan struktur modal, Grup menyesuaikan jumlah dividen yang dibayar kepada pemegang saham dan pengembalian modal kepada pemegang saham.

In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders and return capital to shareholders.

Konsisten dengan entitas lain dalam industri yang sama, Grup memonitor permodalan berdasarkan rasio debt to equity. Rasio ini dihitung dengan perbandingan jumlah hutang dan ekuitas. Hutang dihitung dari seluruh pinjaman yang diterima dari pemberi pinjaman beserta hutang bunga yang timbul pada tahun tersebut. Jumlah modal dihitung dari “ekuitas” seperti yang ada pada laporan posisi keuangan konsolidasian.

Consistent with others in the industry, the Group monitors capital on the basis of the debt to equity ratio. This ratio is calculated as net debt divided by total equity. Net debt is calculated as total loan received from lender and interest payable incurred during the year. Total capital is calculated as “equity” as shown in the consolidated statement of financial position.

Strategi Grup selama tahun 2011 dan 2010 adalah mempertahankan rasio debt to equity pada akhir tahun buku maksimum 2,33:1.

During 2011 and 2010, the Group‟s strategy, was to maintain the maximum debt to equity ratio of 2.33:1 at any end of financial year.



PT INDO TAMBANGRAYA MEGAH TBK. DAN ANAK PERUSAHAAN/AND SUBSIDIARIES Lampiran 5/95 Schedule CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2011 dan 2010 (Dinyatakan dalam ribuan Dolar AS, kecuali dinyatakan lain) 29. MANAJEMEN RISIKO KEUANGAN (lanjutan) c.

Estimasi nilai wajar

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 AND 2010 (Expressed in thousand US Dollars, unless otherwise stated) 29. FINANCIAL RISK MANAGEMENT (continued) c.

Management is of the opinion that the carrying value of its financial assets and liabilities approximates the fair value of the financial assets and liabilities as at 31 December 2011.

Manajemen berpendapat bahwa nilai buku dari aset dan liabilitas keuangannya mendekati nilai wajar dari aset dan liabilitas keuangan tersebut pada tanggal 31 Desember 2011. 30. PERKEMBANGAN TERAKHIR PERNYATAAN STANDAR AKUNTANSI KEUANGAN (“PSAK”) Berikut ini adalah PSAK yang akan efektif berlaku pada atau setelah tanggal 1 Januari 2012:

30. PROSPECTIVE ACCOUNTING PRONOUNCEMENTS The following are SFAS to be effective on or after 1 January 2012: 



PSAK No. 10 (Revisi 2010), “Pengaruh Perubahan Kurs Valuta Asing”. PSAK No. 16 (Revisi 2011), ”Aset Tetap” PSAK No. 18 (Revisi 2010), “Akuntansi dan Pelaporan oleh Program Imbalan Pensiun”. PSAK No. 24 (Revisi 2010), “Imbalan Kerja”.

 

PSAK No. 26 (Revisi 2011), ”Biaya Pinjaman” PSAK No. 30 (Revisi 2011), ”Sewa”

 



PSAK No. 33 (Revisi 2011), “Aktivitas Pengupasan Lapisan Tanah dan Pengelolaan Lingkungan Hidup pada Pertambangan Umum”. PSAK No. 34 (Revisi 2010), “Kontrak Konstruksi”.



PSAK No. 46 (Revisi 2010), “Pajak Penghasilan”. PSAK No. 50 (Revisi 2010), “Instrumen Keuangan: Penyajian”. PSAK No. 53 (Revisi 2010), “Pembayaran Berbasis Saham”. PSAK No. 55 (Revisi 2011), ”Instrumen Keuangan: Pengakuan dan Pengukuran” PSAK No. 56 (Revisi 2010), “Laba Per Saham”

 

  

       

PSAK No. 60 (Revisi 2010), “Instrumen Keuangan: Pengungkapan”. PSAK No. 61 (Revisi 2010), “Akuntansi Hibah Pemerintah dan Pengungkapan Bantuan Pemerintah”.

Fair value estimation

  



    

SFAS No. 10 (Revised 2010), “The Effects of Changes in Foreign Exchange Rates”. SFAS No. 16 (Revised 2011), ”Fixed Assets” SFAS No. 18 (Revised 2010), “Accounting and Reporting by Retirement Benefit Plans”. SFAS No. 24 (Revised 2010), “Employee Benefits”. SFAS No. 26 (Revised 2011), ”Borrowing Costs” SFAS No. 30 (Revised 2011), ”Leases” SFAS No. 33 (Revised 2011), “Stripping Activities and Environmental Management in General Mining”. SFAS No. 34 (Revised 2010), “Construction Contracts”. SFAS No. 46 (Revised 2010), “Income Taxes”. SFAS No. 50 (Revised 2010), “Financial Instruments: Presentation”. SFAS No. 53 (Revised 2010), “Share-based Payments”. SFAS No. 55 (Revised 2010), ”Financial Instrument: Recognition and Measurement” SFAS No. 56 (Revised 2010), “Earning per Share” SFAS No. 60 (Revised 2010), “Financial Instruments: Disclosures”. SFAS No. 61 (Revised 2010), “Accounting for Government Grants and Disclosure of Government Assistance”.


PT INDO TAMBANGRAYA MEGAH TBK. DAN ANAK PERUSAHAAN/AND SUBSIDIARIES Lampiran 5/96 Schedule CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN 31 DESEMBER 2011 dan 2010 (Dinyatakan dalam ribuan Dolar AS, kecuali dinyatakan lain) 30. PERKEMBANGAN TERAKHIR PERNYATAAN STANDAR AKUNTANSI KEUANGAN (“PSAK”) (lanjutan)           

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 AND 2010 (Expressed in thousand US Dollars, unless otherwise stated) 30. PROSPECTIVE ACCOUNTING PRONOUNCEMENTS (continued)

PSAK No. 63 (Revisi 2010), “Pelaporan Keuangan dalam Ekonomi Hiperinflasi”. PSAK No. 64, “Aktivitas Eksplorasi dan Evaluasi pada Pertambangan Sumber Daya Mineral”. ISAK No. 13, “Lindung Nilai Investasi Neto dalam Kegiatan Usaha Luar Negeri”. ISAK No. 15, “Batas Aset Imbalan Pasti, Persyaratan Pendanaan Minimum dan Interaksinya”. ISAK No. 16, “Perjanjian Konsesi Jasa”.



ISAK No. 18, “Bantuan Pemerintah - Tidak Ada Relasi Spesifik dengan Aktivitas Operasi”. ISAK No. 20, “Pajak Penghasilan - Perubahan dalam Status Pajak Entitas atau Para Pemegang Sahamnya”. ISAK No. 23, “Sewa Operasi - Insentif” ISAK No. 24, “Evaluasi Substansi Beberapa Transaksi yang Melibatkan suatu Bentuk Legal Sewa” ISAK No. 25, ”Hak atas Tanah” ISAK No. 26, ”Penilaian Ulang Derivatif Melekat”



Grup masih mempelajari dampak yang mungkin timbul dari penerapan standar-standar ini terhadap laporan keuangan konsolidasian. 31. REKLASIFIKASI AKUN

   



SFAS No. 63 (Revised 2010), “Financial Reporting in Hyperinflationary Economies”. SFAS No. 64, “Exploration for and Evaluation of Mineral Resources”. ISFAS No. 13, “Hedges of a Net Investment in a Foreign Operation”. ISFAS No. 15, “The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction”. 16, “Service Concession ISFAS No. Arrangements”. ISFAS No. 18, “Government Assistance - No Specific Relation to Operating Activities”. ISFAS No. 20, “Income Taxes - Changes in the Tax Status of an Entity or its Shareholders”.

 

ISFAS No. 23, “Operating Leases - Incentives” ISFAS No. 24, ”Evaluating the Substance of Transactions Involving the Legal Form of a Lease”

 

ISFAS No. 25, ”Land Rights” ISFAS No. 26, ”Re-assessment of Embedded Derivatives”

The Group is still considering the impact, if any, of these revised standards on the consolidated financial statements. 31. RECLASSIFICATION OF ACCOUNTS

Angka komparatif pada laporan keuangan konsolidasian untuk tahun yang berakhir pada tanggal 31 Desember 2010 telah diubah untuk menyesuaikan dengan penyajian laporan keuangan konsolidasian untuk tahun yang berakhir pada tanggal 31 Desember 2011.

Certain comparative figures in the consolidated financial statements for the year ended 31 December 2010 have been amended to conform with the basis on which the consolidated financial statements for the year ended 31 December 2011 have been presented.

Terutama untuk menyesuaikan dengan penyajian laporan keuangan konsolidasian tahun 2011, beberapa akun pada laporan laba rugi konsolidasian tahun 2010 berikut ini telah direklasifikasi.

In particular, to conform with the presentation of the 2011 consolidated financial statements, the following accounts in the 2010 consolidated statement of comprehensive income have been reclassified.

Sebelum Reklasifikasi/ Before Reclassification Penjualan bersih

1,668,192

Beban penjualan

(99,386)


Reklasifikasi/ Reclassification

Setelah Reklasifikasi/ After Reclassification

(23,542)

1,644,650

23,542

(75,844)

Net sales Selling expense

Ventura Building 8th Floor Jl. R. A. Kartini No.26 Jakarta 12430 Indonesia T. +62 21 750 4390 F. +62 21 750 4696 E. [email protected] www.itmg.co.id

110


2011 Annual Report

2011 Annual Report. Aiming Higher

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