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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES TABLE OF CONTENTS

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Directors Statement on the Responsibility for the Consolidated Financial Statements of PT Sinar Mas Multiartha Tbk and Its Subsidiaries as of September 30, 2011 and 2010, and December 31, 2010, 2009 and 2008 and January 1, 2008/ December 31, 2007, and for the Nine Month Periods Ended September 30, 2011 and 2010 and for the Years Ended December 31, 2010, 2009 and 2008 Independent Accountants Review Report CONSOLIDATED FINANCIAL STATEMENTS - As of September 30, 2011 and 2010 and December 31, 2010, 2009, and 2008 and January 1, 2008/ December 31, 2007, and for the Nine Month Periods Ended September 30, 2011 and 2010 and for the Years Ended December 31, 2010, 2009, and 2008 Consolidated Statements of Financial Position Consolidated Statements of Comprehensive Income Consolidated Statements of Changes in Equity Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements 3 6 7 12 14 1

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Consolidated Statements of Financial Position September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and January 1, 2008/ December 31, 2007

September 30, 2011 Notes ASSETS Cash and Cash Equivalents Related parties Third parties Allowance for impairment losses Net Short-term Investments Related parties Third parties Allowance for impairment losses Net Securities Purchased Under Agreements to Resell - Net Consumer Financing Receivables Related parties Third parties Unearned income Allowance for impairment losses Net Net Investments in Finance Lease Related parties Third parties Guaranteed residual value Unearned lease income Security deposits Allowance for impairment losses Net Factoring Receivables Related parties Third parties Deffered factoring income Allowance for impairment losses Net Segregated Funds Net Assets - Unit Link Segregated Funds Net Assets - Sharia Premiums and Reinsurance Receivables Related parties Third parties Allowance for impairment losses Total Loans Related parties Third parties Total Allowance for impairment losses Net 2b,2d,2e,2g,2h,2o,3,4,55,56,60 847 8,382,931 8,383,778 2b,2d,2e,2h,2o,3,5,55,56,60 706,141 14,385,846 (120) 15,091,867 539,027 6,320,077 (59) 6,859,045 534,480 7,509,979 8,044,459 460,811 5,910,525 (1,107) 6,370,229 1,201,995 5,776,956 (145) 6,978,806 1,161,511 6,403,091 (1,179) 7,563,423 171,742 2,647,250 2,818,992 277 1,980,668 1,980,945 435 1,754,678 (886) 1,754,227 636 824,974 (1,112) 824,498 790 676,970 (506) 677,254 (Unaudited) Rp '000,000 2010 (Unaudited) Rp '000,000 2010 Rp '000,000 December 31, 2009 Rp '000,000 2008 Rp '000,000 January 1, 2008 / December 31, 2007 Rp '000,000

2b,2d,2h,3,6,56,60 2b,2e,2h,2o,2l,3,7,55,56,60

77,931

30,562

107,141

36,591

87,797

835,499 (253,264) (1,526) 580,709 2b,2d,2e,2h,2o,2l,3,8,55,56,60 139,596 44,063 26,297 (40,566) (26,297) (2,597) 140,496 2b,2d,2e,2h,2o,3,9,55,56,60 116,396 239,312 (6,298) (5,159) 344,251 2d,2e,2h,2i,3,10,55,56,60 2h,2j,3,11,56,60 2d,2e,2o,2ab,12,55,60 110,081 301,376 (3,695) 407,762 2b,2d,2e,2h,2k,2o,3,13,55,56,60 1,436,003 7,727,712 9,163,715 (97,227) 9,066,488 2d,2m,14,60 166,949 (65,107) 101,842 5,270,165 97,471

492,409 (137,084) (550) 354,775

531,842 (154,343) (538) 376,961

337 489,665 (95,642) (493) 393,867

318 481,560 (97,160) (374) 384,344

132 233,229 (50,886) (236) 182,239

191,260 43,302 26,565 (56,268) (26,565) (5,919) 172,375

172,799 50,981 25,487 (56,197) (25,487) (3,714) 163,869

110,454 47,664 24,773 (44,612) (24,773) (5,639) 107,867

57,873 37,741 10,079 (28,508) (10,079) (2,819) 64,287

20,059 35,579 9,104 (17,407) (9,104) (1,300) 36,931

55,065 86,485 (5,553) (6,701) 129,296 5,671,985 64,438

65,658 133,175 (6,095) (5,180) 187,558 7,032,319 71,338

21,144 56,134 (814) (5,967) 70,497 3,154,085 36,713

22,174 52,584 (2,157) 72,601 512,676 21,834

11,870 36,240 (568) 47,542 289,653 7,247

58,465 247,989 306,454

44,092 314,001 (4,926) 353,167

151,260 283,569 434,829

109,987 336,746 446,733

52,443 234,782 287,225

858,316 5,346,187 6,204,503 (141,867) 6,062,636

794,940 6,216,855 7,011,795 (77,638) 6,934,157

741,895 4,671,969 5,413,864 (90,889) 5,322,975

83,408 4,168,075 4,251,483 (52,703) 4,198,780

351,816 2,699,031 3,050,847 (33,968) 3,016,879

Ijarah assets Cost


Accumulated depreciation Net

275,079 (21,866) 253,213

275,370 (56,212) 219,158

See accompanying notes to consolidated financial statements which are an integral part of the consolidated financial statements.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Consolidated Statements of Financial Position September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and January 1, 2008/ December 31, 2007

September 30, 2011 Notes (Unaudited) Rp '000,000 Securities Agent Receivables Other Accounts Receivable Related parties Third parties Total Investment in Shares of Stock Investment Properties Cost Accumulated depreciation Net Book Value Property and Equipment Cost Accumulated depreciation Net Book Value Property Under Build, Operate and Transfer Agreement Cost Accumulated depreciation Net Book Value Assets for Lease Cost Accumulated depreciation Net Book Value Foreclosed Properties Allowance for impairment losses Net Book Value Deferred Acquisition Cost Deferred Tax Assets Noncurrent Assets Held For Sale Other Assets Related parties Third parties Total TOTAL ASSETS 2h,2o,3,15,56,60 2d,2e,2h,2o,3,16,55,56,60 5,052 846,332 851,384 2h,2n,3,17,56,60 2p,18 34,497 (5,561) 28,936 2e,2q,2w,19,55 1,284,018 (330,067) 953,951 944,079 (255,396) 688,683 1,009,912 (271,819) 738,093 845,681 (210,232) 635,449 669,122 (169,414) 499,708 470,095 (139,868) 330,227 15,811 (4,566) 11,245 34,497 (4,766) 29,731 91,921 (4,110) 87,811 115,286 (820) 114,466 139,653 139,653 586,560 2,906 399,030 401,936 552,599 6,234 536,122 542,356 558,845 5,455 538,121 543,576 372,261 4,236 645,798 650,034 321,203 10,788 388,822 399,610 326,326 336,676 2010 (Unaudited) Rp '000,000 380,597 2010 Rp '000,000 165,481 December 31, 2009 Rp '000,000 70,197 2008 Rp '000,000 115,441 January 1, 2008 / December 31, 2007 Rp '000,000 442,897

2s,2w,20 79,115 (10,771) 68,344 2e,2r,21,55 101,596 (56,960) 44,636 2u,2w,22 2o 87,634 (4,931) 82,703 4,922 104,485 72,081 (42,117) 29,964 75,153 (4,649) 70,504 6,982 79,445 (45,821) 33,624 75,922 (4,683) 71,239 3,560 59,066 (33,110) 25,956 70,069 (4,775) 65,294 16,811 49,489 (18,388) 31,101 79,708 (5,415) 74,293 4,411 32,277 (7,429) 24,848 79,787 (5,415) 74,372 20,996 9,066 79,472 (6,824) 72,648 79,041 (7,825) 71,216 77,988 (3,899) 74,089 57,527 57,527 24,383 24,383

2v 2ag,53 2x,61 2d,2e,2h,2o,2t,2w,3,23,55,56,60

7,731 347,099 354,830 42,980,187

5,952 141,629 147,581 25,086,510

9,622 150,185 159,807 27,845,024

11,912 115,101 127,013 19,700,337

46,496 117,982 164,478 15,537,221

5,538 136,471 142,009 14,130,577

See accompanying notes to consolidated financial statements which are an integral part of the consolidated financial statements.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Consolidated Statements of Financial Position September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and January 1, 2008/ December 31, 2007 September 30, 2011 Notes (Unaudited) Rp '000,000 LIABILITIES AND EQUITY Liabilities Deposits and Deposits from Other Banks Related parties Third parties Total Securities Sold Under Agreements to Repurchase - Net Accounts Payable Related parties Third parties Total Premiums Received in Advance Liability for Future Policy Benefits Segregated Funds Contract Liabilities - Unit Link Segregated Funds Contract Liabilities - Sharia Unearned Premiums and Estimated Own Retention Claims Related parties Third parties Total Securities Agent Payables Taxes Payable Accrued Expenses Loans Received Convertible Bonds Payable Deferred Tax Liabilities Defined-benefit Post-employment Reserve Mudharabah Reserve Liabilities Directly Related to Noncurrent Assets Classified as Held for Sale Other Liabilities Related parties Third parties Total Total Liabilities Equity Equity Attributable to the Equity Holders of the Parent Company Capital Stock - Rp 5,000 par value per Series A share and Rp 100 par value per Series B share Authorized - 142,474,368 Series A shares and 21,371,155,200 Series B shares Issued and paid-up 142,474,368 Series A shares and 6,081,778,862 Series B shares as of September 30, 2011 142,474,368 Series A shares and 6,070,109,417 Series B shares as of September 30, 2010 142,474,368 Series A shares and 6,081,318,298 Series B shares as of December 31, 2010 142,474,368 Series A shares and 6,037,783,827 Series B shares as of December 31, 2009 142,474,368 Series A shares and 5,645,191,047 Series B shares as of December 31, 2008 142,474,368 Series A shares and 4,679,581,047 Series B shares as of January 1, 2008/ December 31, 2007 Additional Paid-in Capital - Net Difference in Value Arising from Restructuring Transactions Among Entities Under Common Control Other Equity Components General Reserve Retained Earnings Total Non-Controlling Interests Total Equity TOTAL LIABILITIES AND EQUITY 2c,36 2d,2e,2h,2y,3,24,55,56,60 4,738,105 8,666,895 13,405,000 3,666,619 4,706,919 8,373,538 3,875,577 5,728,533 9,604,110 2,619,510 4,071,212 6,690,722 1,193,326 3,665,795 4,859,121 1,295,656 3,617,565 4,913,221 2010 (Unaudited) Rp '000,000 2010 Rp '000,000 December 31, 2009 Rp '000,000 2008 Rp '000,000 January 1, 2008 / December 31, 2007 Rp '000,000

2d,2e,2h,3,25,55,56,60 2d,2e,2h,3,26,55,56,60

37,223

30,541

32,069

284,755

169,759

28,197 292,925 321,122 2d,2ab,27,60 2d,2z,28,60 2d,2i,60 2j 722,362 6,569,452 5,103,098 49,043

15,600 271,248 286,848 660,108 2,576,263 6,122,675 28,619

12,446 186,406 198,852 770,687 2,481,280 7,054,710 33,307

8,704 266,335 275,039 561,648 3,372,899 3,365,818 15,465

9,014 222,788 231,802 455,938 5,119,479 522,192 10,559

8,358 187,133 195,491 264,118 4,674,164 280,876 3,246

2d,2e,2ab,29,55,60 182,850 707,889 890,739 2h,3,30,56,60 2d,2ag,31,53,60 2d,2e,2h,3,32,55,56,60 2h,3,33,56 34 2ag,53 2af,51 2ad 168,158 72,435 68,589 886,391 50,106 75,557 1,634 159,302 479,903 639,205 772,223 35,566 34,898 487,180 41,866 50,979 662 193,375 480,994 674,369 415,650 41,414 43,868 512,265 41,992 64,447 1,097 116,523 378,083 494,606 101,085 31,244 35,614 348,907 63,783 33,466 38,979 864 107,561 349,319 456,880 63,639 32,490 33,300 302,805 63,783 23,332 27,051 653 94,519 268,794 363,313 579,751 21,559 22,226 118,254 49,366 4,292 22,013 347

2x,61 2d,2e,2h,3,35,55,56,60

8,221

1,415 559,180 560,595 28,989,725

2,850 629,641 632,491 20,773,662

818 613,081 613,899 22,584,016

1,841 386,081 387,922 16,102,816

672 396,686 397,358 12,770,141

13,870 138,781 152,651 11,664,888

37,43 2aa,38,43

1,320,550 805,084

1,319,383 800,417

1,320,504 804,900

1,316,150 787,598

1,276,891 631,179

1,180,330 632,182

2c,40 39 42

93,484 2,702,639 527,331 3,699,065 9,148,153 4,842,309 13,990,462 42,980,187

93,485 (43,227) 263,230 1,879,512 4,312,800 48 4,312,848 25,086,510

93,485 121,433 263,230 2,457,094 5,060,646 200,362 5,261,008 27,845,024

93,486 (45,936) 1,446,093 3,597,391 130 3,597,521 19,700,337

93,493 (93,601) 745,995 2,653,957 113,123 2,767,080 15,537,221 -

93,503 (12,618)

482,441 2,375,838 89,851 2,465,689 14,130,577

See accompanying notes to consolidated financial statements which are an integral part of the consolidated financial statements.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Consolidated Statements of Comprehensive Income For the Nine Month Periods Ended September 30, 2011 and 2010 and for the Years Ended December 31, 2010, 2009 and 2008

September 30, (Nine Months) 2011 2010 Notes (Unaudited) Rp '000,000 OPERATING INCOME Insurance underwriting income Interest income Gain on investments in units of mutual funds Gain on sale of short-term investments - net Administration fee and commissions Consumer financing income Sales Investment management income Stock brokerage and underwriting income Factoring income Finance lease income Equity in net income of the associates - net Shares administration fee Unrealized gain on increase in fair value of securities Gain on sale of investment Gain on foreign exchange - net Other income Total Operating Income OPERATING EXPENSES Insurance underwriting expenses Interest expense Salaries and employee benefits General and administrative expenses Unrealized loss on decrease in fair value of securities Costs of goods sold Depreciation and amortization Provision for possible losses on earning and non-earning assets Loss on foreign exchange - net Provision for doubtful accounts Investment management expenses Stock brokerage and underwriting expenses Other financial charges Mudharabah for participants Equity in net loss of the associates - net Other expenses Total Operating Expenses INCOME BEFORE TAX TAX EXPENSE (BENEFIT) Current Deferred Total NET INCOME (Unaudited) Rp '000,000 2010

December 31, (One Year) 2009 Rp '000,000 2008 Rp '000,000

Rp '000,000

2ac,44 2ab,45 2h,5 2h,5 2ab 2e,2ab,55 2ab,46 2ae 2ae 2e,2ab,55 2e,2ab 17 2e,2ae,55 2h,5 17 2d 2ab,47

11,118,330 1,106,316 912,031 732,594 168,979 165,135 85,092 51,588 39,725 34,289 18,520 5,308 2,045 144,995 14,584,947

7,397,873 739,215 951,702 128,381 107,181 87,030 20,165 31,673 51,057 12,637 17,544 23,113 2,336 54,164 12,718 77,652 9,714,441

10,648,786 1,052,352 1,247,102 313,592 83,380 169,846 47,244 45,289 60,254 29,326 27,804 28,388 3,237 184,881 12,718 95,486 14,049,685

8,210,691 864,498 1,195,893 51,607 108,842 119,976 154,489 26,346 31,546 46,019 23,401 41,920 1,999 189,909 49,349 11,116,485

5,964,720 625,353 722,014 53,249 100,064 84,063 37,256 34,285 91,728 28,855 12,917 3,292 223,222 54,341 8,035,359

2ac,48 2ab,49 1d,2af 2e,2ab,50,51,55 2h,5 2ab 2p,2q,2r,2s,18,19,20,21 2o 2d 2o 2ae 2ae 2ab 2ad 17 2d,2ab,52,60

11,189,791 636,589 382,565 297,089 146,550 85,149 81,954 20,132 12,605 11,954 11,459 2,579 680 30 98,806 12,977,932 1,607,015

7,823,727 380,101 257,166 221,889 20,272 56,010 50,308 57,950 10,906 5,169 7,160 673 (193) 57,643 8,948,781 765,660

11,136,208 537,808 335,746 327,089 47,197 78,761 44,934 53,327 16,613 8,195 10,671 3,490 213 81,816 12,682,068 1,367,617

8,758,811 496,710 250,735 262,172 154,147 72,210 64,527 193,477 8,640 3,721 2,470 1,479 249 67,553 10,336,901 779,584

6,381,282 450,386 220,975 239,291 175,882 37,169 59,826 10,580 9,995 6,771 37,244 2,024 309 5,667 48,782 7,686,183 349,176

2ag,53

83,043 6,752 89,795 1,517,220

47,200 18,229 65,429 700,231

68,026 21,777 89,803 1,277,814

48,124 (2,266) 45,858 733,726

34,588 23,695 58,283 290,893

OTHER COMPREHENSIVE INCOME (LOSS) Unrealized gain (loss) on change in fair value of available for sale securities of subsidiaries Translation adjustment of a subsidiary Realized loss on dilution of ownership interest in subsidiaries Gain (loss) on change in ownership interest in subsidiaries and associates TOTAL COMPREHENSIVE INCOME (LOSS) TOTAL COMPREHENSIVE INCOME Income attributable to: Equity holders of the Parent Company Non-controlling interests

(253,681) (70) 38,575 (215,176) 1,302,044

6,050 (2,719) (622) 2,709 702,940

135,701 (2,719) (622) 132,360 1,410,174

47,232 941 48,173 781,899

(81,386) (81,386) 209,507

1,382,490 134,730 1,517,220

700,232 (1) 700,231

1,277,814 1,277,814

700,098 33,628 733,726

263,554 27,339 290,893

Comprehensive income attributable to: Equity holders of the Parent Company Non-controlling interests

2c

3,963,696 (2,661,652) 1,302,044

702,941 (1) 702,940

1,445,183 (35,009) 1,410,174

747,763 34,136 781,899

182,571 26,936 209,507

Earnings per Share (in full Rupiah) Basic Diluted

2ah,54 222 202 113 103 206 189 114 105 46 46

See accompanying notes to consolidated financial statements which are an integral part of the consolidated financial statements.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Consolidated Statements of Changes in Equity For the Nine Month Periods Ended September 30, 2011 and 2010 and for the Years Ended December 31, 2010, 2009 and 2008 Equity Attributable to Equity Holders of the Parent Company Share in Unrealized Gain (Loss) on Change in Gain (Loss) Fair Value of on Change in Available For Sale Share in Translation Ownership Interest Securities of Adjustment of in Subsidiaries Subsidiaries a Subsidiary and Associates Rp '000,000 Rp '000,000 Rp '000,000

Notes

Capital Stock Rp '000,000

Additional Paid-in Capital - Net Rp '000,000

Difference in Value Arising from Restructuring Transactions among Entities Under Common Control Rp '000,000

Changes in Fair Value of Derivative Instruments and Others Rp '000,000

General Reserve Rp '000,000

Retained Earnings Rp '000,000

Total Rp '000,000

Non Controlling Interests Rp '000,000

Total Equity Rp '000,000

Balance as of January 1, 2008/ December 31, 2007 Additional capital stock from conversion of Series II warrants Additional capital stock from conversion of Series III warrants Additional capital stock from Limited Public Offering IV Difference in value arising from restructuring transactions among entities under common control Purchase of shares owned by non-controlling interests by a subsidiary Total comprehensive income during the year Balance as of December 31, 2008

1,180,330

632,182

93,503

(7,719)

4,200

(9,099)

482,441

2,375,838

89,851

2,465,689

38,43

65

65

65

38,43

43

170

213

213

38,43

96,453

(1,173)

95,280

95,280

2c,40

(10)

(10)

10

1,276,891

631,179

93,493

(80,983) (88,702)

4,200

(9,099)

263,554 745,995

182,571 2,653,957

(3,674) 26,936 113,123

(3,674) 209,507 2,767,080

See accompanying notes to consolidated financial statements which are an integral part of the consolidated financial statements.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Consolidated Statements of Changes in Equity For the Nine Month Periods Ended September 30, 2011 and 2010 and for the Years Ended December 31, 2010, 2009 and 2008 Equity Attributable to Equity Holders of the Parent Company Share in Unrealized Gain (Loss) on Change in Gain (Loss) Fair Value of on Change in Available For Sale Share in Translation Ownership Interest Securities of Adjustment of in Subsidiaries Subsidiaries a Subsidiary and Associates Rp '000,000 Rp '000,000 Rp '000,000

Notes

Capital Stock Rp '000,000

Additional Paid-in Capital - Net Rp '000,000

Difference in Value Arising from Restructuring Transactions among Entities Under Common Control Rp '000,000

Changes in Fair Value of Derivative Instruments and Others Rp '000,000

General Reserve Rp '000,000

Retained Earnings Rp '000,000

Total Rp '000,000

Non Controlling Interests Rp '000,000

Total Equity Rp '000,000

Balance as of January 1, 2009 Additional capital stock from conversion of Series III warrants Additional capital stock from conversion of Series IV warrants Difference in value arising from restructuring transactions among entities under common control Purchase shares owned by non-controlling interests by Parent and a subsidiary Total comprehensive income during the year Balance as of December 31, 2009

1,276,891

631,179

93,493

(88,702)

4,200

(9,099)

745,995

2,653,957

113,123

2,767,080

38,43

883

2,913

3,796

3,796

38,43

38,376

153,506

191,882

191,882

2c,40

(7)

(7)

1,316,150

787,598

93,486

46,724 (41,978)

941 5,141

(9,099)

700,098 1,446,093

747,763 3,597,391

(147,136) 34,136 130

(147,136) 781,899 3,597,521

See accompanying notes to consolidated financial statements which are an integral part of the consolidated financial statements.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Consolidated Statements of Changes in Equity For the Nine Month Periods Ended September 30, 2011 and 2010 and for the Years Ended December 31, 2010, 2009 and 2008 Equity Attributable to Equity Holders of the Parent Company Share in Unrealized Gain (Loss) on Change in Gain (Loss) Fair Value of on Change in Available For Sale Share in Translation Ownership Interest Securities of Adjustment of in Subsidiaries Subsidiaries a Subsidiary and Associates Rp '000,000 Rp '000,000 Rp '000,000

Notes

Capital Stock Rp '000,000

Additional Paid-in Capital - Net Rp '000,000

Difference in Value Arising from Restructuring Transactions among Entities Under Common Control Rp '000,000

Changes in Fair Value of Derivative Instruments and Others Rp '000,000

General Reserve Rp '000,000

Retained Earnings Rp '000,000

Total Rp '000,000

Non Controlling Interests Rp '000,000

Total Equity Rp '000,000

Balance as of January 1, 2010, before the impact of initial adoption of PSAK No. 50 (Revised 2006) and PSAK No. 55 (Revised 2006) Impact of initial adoption of PSAK No. 50 (Revised 2006) and PSAK No. 55 (Revised 2006) Balance as of January 1, 2010, after the impact of initial adoption of PSAK No. 50 (Revised 2006) and PSAK No. 55 (Revised 2006) Additional capital stock from conversion of Series III warrants Additional capital stock from conversion of Series IV warrants Difference in value arising from restructuring transactions among entities under common control Appropriation for general reserve Cash dividends Purchase of shares of subsidiary by non-controlling interest Deconsolidated subsidiary Total comprehensive income during the year Balance as of December 31, 2010

1,316,150

787,598

93,486

(41,978)

5,141

(9,099)

1,446,093

3,597,391

130

3,597,521

2b

2,599

2,599

2,599

2b

1,316,150

787,598

93,486

(41,978)

5,141

(9,099)

1,448,692

3,599,990

130

3,600,120

38,43

160

529

689

689

38,43

4,194

16,773

20,967

20,967

2c,40 42 41

(1)

263,230 -

(263,230) (6,182) -

(1) (6,182) -

(6,182)

1,320,504

804,900

93,485

135,701 93,723

31,668 36,809

(9,099)

263,230

1,277,814 2,457,094

1,445,183 5,060,646

235,322 (82) (35,009) 200,362

235,322 (82) 1,410,174 5,261,008

See accompanying notes to consolidated financial statements which are an integral part of the consolidated financial statements.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Consolidated Statements of Changes in Equity For the Nine Month Periods Ended September 30, 2011 and 2010 and for the Years Ended December 31, 2010, 2009 and 2008

Notes

Capital Stock Rp '000,000

Additional Paid-in Capital - Net Rp '000,000

Difference in Value Arising from Restructuring Transactions among Entities Under Common Control Rp '000,000

Equity Attributable to Equity Holders of the Parent Company Share in Unrealized Gain (Loss) on Change in Gain (Loss) Fair Value of on Change in Available For Sale Share in Translation Ownership Interest Securities of Adjustment of in Subsidiaries Subsidiaries a Subsidiary and Associates Rp '000,000 Rp '000,000 Rp '000,000

Changes in Fair Value of Derivative Instruments and Others Rp '000,000

General Reserve Rp '000,000

Retained Earnings Rp '000,000

Total Rp '000,000

Non Controlling Interests Rp '000,000

Total Equity Rp '000,000

Balance as of January 1, 2011, before the impact of initial adoption of PSAK No. 22 (Revised 2010) Impact of initial adoption of PSAK No. 22 (Revised 2010) Balance as of January 1, 2011, after the impact of initial adoption of PSAK No. 22 (Revised 2010) Additional capital stock from conversion of Series IV warrants Difference in value arising from restructuring transactions among entities under common control Appropriation for general reserve Cash dividends Purchase of shares of a subsidiary by non-controlling interests Total comprehensive income during the period Balance as of September 30, 2011

1,320,504

804,900

93,485

93,723

36,809

(9,099)

263,230

2,457,094

5,060,646

200,362

5,261,008

2b

129,806

129,806

129,806

1,320,504

804,900

93,485

93,723

36,809

(9,099)

263,230

2,586,900

5,190,452

200,362

5,390,814

38,43

46

184

230

230

2c,40 42 41

(1)

264,101 -

(264,101) (6,224) -

(1) -

(6,224)

(6,224)

1,320,550

805,084

93,484

(250,727) (157,004)

(70) (70)

2,832,003 2,868,812

(9,099)

527,331

1,382,490 3,699,065

3,963,696 9,148,153

7,303,598 (2,661,652) 4,842,309

7,303,598 1,302,044 13,990,462

See accompanying notes to consolidated financial statements which are an integral part of the consolidated financial statements.

- 10 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Consolidated Statements of Changes in Equity For the Nine Month Periods Ended September 30, 2011 and 2010 and for the Years Ended December 31, 2010, 2009 and 2008

Notes

Capital Stock Rp '000,000

Difference in Value Arising from Restructuring Additional Transactions among Paid-in Entities Under Capital - Net Common Control Rp '000,000 Rp '000,000

Equity Attributable to Equity Holders of the Parent Company Share in Unrealized Gain (Loss) on Change in Gain (Loss) Fair Value of on Change in Available For Sale Share in Translation Ownership Interest Securities of Adjustment of in Subsidiaries Subsidiaries a Subsidiary and Associates Rp '000,000 Rp '000,000 Rp '000,000

Changes in Fair Value of Derivative Instruments and Others Rp '000,000

General Reserve Rp '000,000

Retained Earnings Rp '000,000

Total Rp '000,000

Non Controlling Interests Rp '000,000

Total Equity Rp '000,000

Balance as of January 1, 2010, before the impact of initial adoption of PSAK No. 50 (Revised 2006) and PSAK No. 55 (Revised 2006) Impact of initial adoption of PSAK No. 50 (Revised 2006) and PSAK No. 55 (Revised 2006) Balance as of January 1, 2010, after the impact of initial adoption of PSAK No. 50 (Revised 2006) and PSAK No. 55 (Revised 2006) Additional capital stock from conversion of Series III warrants Additional capital stock from conversion of Series IV warrants Difference in value arising from restructuring transactions among entities under common control Appropriation for general reserve Cash dividends Deconsolidated subsidiary Total comprehensive income during the period Balance as of September 30, 2010

1,316,150

787,598

93,486

(41,978)

5,141

(9,099)

1,446,093

3,597,391

130

3,597,521

2b

2,599

2,599

2,599

1,316,150

787,598

93,486

(41,978)

5,141

(9,099)

1,448,692

3,599,990

130

3,600,120

38,43

160

529

689

689

38,43

3,073

12,290

15,363

15,363

2c,40 42 41

1,319,383

800,417 -

(1)

6,050

(3,341) 1,800

(9,099)

263,230 263,230

(263,230) (6,182) 700,232 1,879,512 -

(1) -

(6,182)

(6,182) 702,941 4,312,800

(82) (1) 48

(82) 702,940 4,312,848

93,485

(35,928)

See accompanying notes to consolidated financial statements which are an integral part of the consolidated financial statements.

- 11 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Consolidated Statements of Cash Flows For the Nine Month Periods Ended September 30, 2011 and 2010 and for the Years Ended December 31, 2010, 2009 and 2008

December 31, (One Year) September 30, (Nine Months) 2011 (Unaudited) Rp '000,000 CASH FLOWS FROM OPERATING ACTIVITIES Insurance underwriting income received Interest income received Income received from financing activities Stock brokerage, underwriting and investment management income received Shares administration fee received Other operating income received Insurance underwriting expenses paid Operating expenses paid Interest paid Stock brokerage, underwriting and investment management expenses paid Gain (loss) on foreign exchange - net Operating cash flows before changes in operating assets Decrease (increase) in operating assets: Short-term investments Securities purchased under agreements to resell Consumer financing receivables Net investments in finance lease Factoring receivables Segregated funds net assets - Unit Link Segregated funds net assets - Sharia Loans Ijarah assets Securities agent receivables Other accounts receivable Foreclosed properties Other assets Increase (decrease) in operating liabilities: Deposits and deposits from other banks Securities sold under agreements to repurchase Accounts payable Premiums received in advance Securities agent payable Taxes payable Accrued expenses Mudharabah Reserve Other liabilities Net Cash Generated from (Used in) Operations Income tax paid Net Cash Provided (Used in) by Operating Activities CASH FLOWS FROM INVESTING ACTIVITIES Acquisitions of investment in shares Proceeds from sale of investment Acquisition of minority interest of a subsidiary Additions to property under build, operate and transfer Advances for investment Proceeds from sale of property and equipment Acquisitions of property and equipment Acquisitions of investment properties Proceeds from sale of assets for lease Acquisitions of assets for lease Net Cash Used in Investing Activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from loan received Payment of interest on loan payable Payment of lease payable Proceeds from issuance of convertible bonds payable Proceeds from sale of ownership interest in subsidiaries without lost of control Proceeds from issuance of shares by subsidiary Proceeds from additional issuances of capital stock from conversion of Series II warrants Proceeds from additional issuances of capital stock from conversion of Series III warrants Proceeds from additional issuances of capital stock from conversion of Series IV warrants Proceeds from additional issuances of capital stock from limited public offering IV Payment of stock issuance cost from limited public offering IV Net Cash Provided by Financing Activities NET INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD Beginning balance of cash and cash equivalent of a subsidiary in 2009 which ceased to be subsidiary in 2010 (Note 17) Effect of foreign exchange rate changes CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 2010 (Unaudited) Rp '000,000 Rp '000,000 2010 2009 (As RestatedNote 63) Rp '000,000 2008 (As RestatedNote 63) Rp '000,000

11,366,145 1,060,252 218,856 88,370 1,826 394,833 (9,009,011) (851,811) (552,541) (14,038) (3,639) 2,699,242 (5,053,899) 29,210 (216,937) 23,451 (156,767) 1,762,154 (26,160) (2,145,876) 135,393 (168,252) (282,285) (11,712) (195,021) 3,800,890 5,154 (29) (43,000) (247,492) 7,980 12,314 507 80,318 9,183 (59,321) (50,138) (67,049) 47,000 (74) 7,509 (289,650) (22,151) (324,415) 374,126 (71,630) 70,918 7,271,255 230 7,644,899 7,270,346 2,858,407 (14,641) 10,114,112

7,541,553 739,652 121,578 81,181 2,425 203,629 (5,709,379) (544,521) (337,984) (12,329) 13,952 2,099,757 878,794 6,029 36,470 (69,402) (59,533) (2,517,900) (27,735) (792,112) (247,362) (308,851) 171,358 (5,210) (41,192) 1,682,816 (254,214) (228) 98,460 671,138 2,150 (1,734) (9) 242,995 1,564,485 (44,967) 1,519,518 (148,457) (1,484) 5,335 (106,048) (2,800) (13,015) (266,469) 138,273 (41,087) 689 15,363 113,238 1,366,287 2,033,052 (2,611) (73,575) 3,323,153

10,652,143 1,037,193 230,642 103,280 4,029 222,977 (8,145,063) (768,244) (473,554) (18,866) (25,105) 2,819,432 810,437 (70,550) 11,237 (59,250) (119,304) (3,878,234) (34,639) (1,660,946) (203,850) (93,021) (4,134) (5,978) (48,747) 2,913,388 (252,686) 529 209,039 314,565 7,137 233 20 229,711 884,389 (64,932) 819,457 (148,457) 38,237 (1,644) (2,000) 4,505 (173,481) (21,486) (20,379) (324,705) 163,358 (56,221) 235,322 689 20,967 364,115 858,867 2,033,052 (2,611) (30,901) 2,858,407

8,218,603 853,275 187,207 57,087 2,113 309,938 (7,577,122) (717,733) (454,160) (6,191) (168,781) 704,236 2,369,235 (36,591) (10,683) (47,156) (1,778) (2,641,409) (14,872) (1,162,381) 46,049 115,181 (1,908) 55,909 1,831,601 114,996 (685) 105,710 37,446 (7,711) 5,726 (38) (142,005) 1,318,872 (41,659) 1,277,213 (9,021) (8,749) (22,982) (19,600) 5,211 (155,109) (1,319) (9,577) (221,146) 46,102 (45,962) 3,796 191,882 195,818 1,251,885 825,610 (44,443) 2,033,052

5,931,890 606,995 142,681 127,193 3,043 189,753 (5,671,381) (542,562) (418,764) (44,015) 210,181 535,014 1,217,247 87,797 (207,866) (28,875) (27,775) (223,023) (14,598) (1,200,636) 326,276 (231,264) 79 (23,139) (54,100) 169,759 (4,588) 191,820 (516,112) 5,584 4,432 239,149 245,181 (29,241) 215,940 (3,682) (31,575) 6,514 (175,318) (18,331) 985 (20,654) (242,061) 184,552 (24,960) (384) 14,417 65 213 96,453 (1,173) 269,183 243,062 677,760 14,828 935,650

See accompanying notes to consolidated financial statements which are an integral part of the consolidated financial statements.

- 12 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Consolidated Statements of Cash Flows For the Nine Month Periods Ended September 30, 2011 and 2010 and for the Years Ended December 31, 2010, 2009 and 2008

September 30, (Nine Months) 2011 (Unaudited) Rp '000,000 SUPPLEMENTAL DISCLOSURES Cash and cash equivalents consist of: Cash on hand Cash in banks Demand deposits with Bank Indonesia Time deposits Funds placed in securities companies Demand deposits with other banks Bank Indonesia Intervention (excluded maturity more than 3 months) Total Cash and Cash Equivalents Noncash investing and financing activities: Reclassification from other assets - advances for investment to investment in shares Liability arising from acquisition of property and equipment Reclassification from other assets to property and equipment Reclassification from property and equipment to other assets Reclassification from investment properties to property and equipment Reclassification from foreclosed properties to property and equipment Reclassification from property and equipment - net to Segregated Funds Net Assets - Sharia Liability arising from construction of property under build, operate and transfer agreement 2010 (Unaudited) Rp '000,000

2010

December 31, (One Year) 2009 (As restatedNote 63)

2008 Note 63) Rp '000,000

(As restated-

Rp '000,000

Rp '000,000

581,331 117,849 1,362,218 6,363,086 6 422,061 1,267,561 10,114,112

308,241 345,513 1,302,748 862,490 379,787 124,374 3,323,153

270,623 128,895 1,067,919 513,072 436 706,189 171,273 2,858,407

200,653 127,670 854,850 571,936 4 275,940 1,999 2,033,052

142,541 168,655 365,516 148,872 26 85,565 24,475 935,650

1,500 -

19,600 -

19,600 -

1,355 24,424 10,898 8 -

1,715 67 42,698 28 1,569

See accompanying notes to consolidated financial statements which are an integral part of the consolidated financial statements.

- 13 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 1. General a. Establishment and General Information PT Sinar Mas Multiartha Tbk (the Company or the Parent Company) which was formerly named PT Internas Arta Leasing Company or PT Internas Arta Finance Company, was established by virtue of Notarial Deed No. 60 dated October 21, 1982 of Benny Kristianto, S.H., public notary in Jakarta, which was approved by the Minister of Justice of the Republic of Indonesia in his Decision Letter No. C2-6537.HT.01.01.Th.83 dated September 30, 1983, under the name of PT Internas Arta Leasing Company. The Articles of Association of the Company were registered in the Court of Justice of West Jakarta on May 17, 1984 under registration number 489/1984. On May 1, 1989, the stockholders held an Extraordinary Stockholders Meeting and agreed to change the Companys name from PT Internas Arta Leasing Company to PT Internas Arta Finance Company, and to increase the authorized and paid-up capital stock from Rp 1,000 million to Rp 5,000 million. These decisions were documented in Notarial Deed No. 15 dated May 1, 1989 of Benny Kristianto, S.H., public notary in Jakarta, and were approved by the Minister of Justice of the Republic of Indonesia in his Decision Letter No. C2-6968.HT.01.04.Th.89 dated August 2, 1989. This Notarial Deed was registered in the Court of Justice of West Jakarta on August 16, 1989 under registration number 1109/1989. On February 25, 1995, the stockholders held an Extraordinary Stockholders Meeting and agreed to change the Parent Companys name to PT Sinar Mas Multiartha and to change the par value per share from Rp 1,000 to Rp 500. These decisions were documented in Notarial Deed No. 218 dated February 25, 1995 of Veronica Lily Dharma, S.H., public notary in Jakarta, and were approved by the Minister of Justice of the Republic of Indonesia in his Decision Letter No. C2-5573.HT.01.04.Th.95 dated May 5, 1995. On February 18, 2003, in the Extraordinary Stockholders Meeting held by the stockholders, it was agreed to increase the Companys authorized capital stock from Rp 1,125,000 million to Rp 2,849,487 million and approved the reverse stock split from Rp 500 per share to Rp 5,000 per share, and at the same time added series of shares from 1 series to 2 series, consisting of Series A shares with a par value of Rp 5,000 per share and Series B shares with a par value of Rp 100 per share. These decisions were documented in Notarial Deed No. 40 dated February 18, 2003 of Aulia Taufani, S.H., substitute notary of Sutjipto, S.H., notary public in Jakarta, and was approved by the Minister of Justice and Human Rights of the Republic of Indonesia in his Decision Letter No. C-04209.HT.01.04.TH.2003 dated February 27, 2003. The Companys Articles of Association have been amended several times, most recently by Notarial Deed No. 72 dated July 9, 2008 of Sutjipto, S.H., public notary in Jakarta, based on the Extraordinary Stockholders Meeting held on the same date, in relation to revisions in the Companys Articles of Association to be in accordance with the provisions of the Republic of Indonesia Law No. 40/2007 and Capital Market and Financial Institutions Supervisory Agency (Bapepam-LK) regulation, including the change in the members of the Companys Board of Commissioners and Directors and approval of Limited Public Offering IV. These amendments have been approved by the Minister of Law and Human Rights of the Republic of Indonesia in his Decision Letter No. AHU-27024.AH.01.02.TH 2009 dated June 18, 2009.

- 14 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 Changes in the Main Business Activities The Parent Company started its commercial operations in 1983, engaging in finance leasing, factoring and consumer financing. The Company obtained an approval to operate as a multifinance company from the Minister of Finance of the Republic of Indonesia in his Decision Letter No. 300/KMK.013/1990 dated March 3, 1990. On May 30, 1996, the stockholders of the Parent Company held an Extraordinary Stockholders Meeting and agreed on significant matters including change in the main business activities of the Parent Company from financing activities and treasury management to trading, manufacturing, transportation, real estate and services; and changing the entire Articles of Association to comply with Corporate Law No. 1 of 1995, concerning Limited Liability Companies, including changing the name of the Company to PT Sinar Mas Multiartha Tbk. The minutes of this meeting were documented in Notarial Deed Nos. 143 and 144 dated May 30, 1996 and Deed of Amendment No. 69 dated August 23, 1996 of Sutjipto, S.H., public notary in Jakarta. These Notarial Deeds were approved by the Minister of Justice of the Republic of Indonesia in his Decision Letter No. C2-8689.HT.01.04.Th.96 dated August 30, 1996. JBC International Finance Limited, a company established in Mauritius, is the immediate holding company of the Company. The Company is part of the Sinar Mas Group of Companies. The Company is domiciled in Jakarta. The Companys head office is located at BII Plaza, Tower III, Jl. M.H. Thamrin No. 51, Jakarta, Indonesia. b. Public Offering of the Companys Shares On June 14, 1995, the Company received the Notice of Effectivity from the Chairman of the Capital Market Supervisory Agency (Bapepam) (currently the Capital Market and Financial Institutions Supervisory Agency or Bapepam-LK) in his Decision Letter No. S-759/PM/1995 for the offering of 60,000,000 shares with a par value of Rp 500 per share to the public at an offering price of Rp 1,800 per share. On July 5, 1995, the Companys shares were listed in the Indonesia Stock Exchange. On November 8, 1996, the stockholders held an Extraordinary Stockholders Meeting to ratify the plan of the Company on the issuance of additional 663,000,000 shares with a par value of Rp 500 per share through Limited Public Offering I at an exercise price of Rp 750 per share, with 99,450,000 Series I warrants attached to such shares, free of charge. The Series I warrants issued by the Company could be exercised starting May 28, 1997 to November 28, 2001. The minutes of this Extraordinary Stockholders Meeting were documented in Notarial Deed No. 40 dated November 8, 1996 of Sutjipto, S.H., public notary in Jakarta.

- 15 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 The Limited Public Offering I took effect upon receipt from the Chairman of Bapepam (currently Bapepam-LK) of the Notice of Effectivity in his Decision Letter No. S-1811/PM/1996 dated November 8, 1996. The proceeds from this Limited Public Offering I amounting to Rp 497,250 million were received by the Company in January 1997. This Limited Public Offering I increased the Companys paid-up capital stock from Rp 331,500 million to Rp 663,000 million and additional paid-in capital from Rp 1,500 million to Rp 167,250 million. On June 24, 2003, the stockholders held an Extraordinary Stockholders Meeting to ratify the plan of the Company on the issuance of pre-emptive rights to buy 2,137,115,520 Series B shares with a par value of Rp 100 per share at an exercise price of Rp 100 per share, with 4 Series II warrants attached to every 15 Series B shares, free of charge. The Series II warrants issued by the Company totaling to 569,897,472 warrants can be exercised into shares during the period from January 23, 2004 to July 23, 2008. The minutes of this Extraordinary Stockholders Meeting were documented in Notarial Deed No. 153 dated June 24, 2003 of Aulia Taufani, S.H., substitute notary of Sutjipto, public notary in Jakarta. The Limited Public Offering II took effect upon receipt from the Chairman of Bapepam (currently Bapepam-LK) of the Notice of Effectivity in his Decision Letter No. S-1485/PM/2003 dated June 23, 2003. The proceeds from this Limited Public Offering II amounting to Rp 213,711 million were received by the Company in July 2003. This Limited Public Offering II increased the Companys paid-up capital stock from Rp 712,372 million to Rp 926,083 million. The funds from the Limited Public Offering II were used by the Parent Company for additional investments in subsidiaries and to settle its obligations or loans received in order to increase its working capital ratio. On June 28, 2005, the stockholders held an Extraordinary Stockholders Meeting to ratify the plan of the Company on the issuance of pre-emptive rights to buy 991,621,601 Series B shares with a par value of Rp 100 per share at an exercise price of Rp 125 per share, with 991,621,601 Series III warrants attached to such shares, free of charge. The Series III warrants issued by the Company can be exercised into shares during the period from January 12, 2006 to July 13, 2010. The minutes of this Extraordinary Stockholders Meeting were documented in Notarial Deed No. 274 dated June 28, 2005 of Aulia Taufani, S.H., substitute notary of Sutjipto, S.H., public notary in Jakarta. The Limited Public Offering III took effect upon receipt from the Chairman of Bapepam (currently Bapepam-LK) of the Notice of Effectivity in his Decision Letter No. S-1691/PM/2005 dated June 27, 2005. The Limited Public Offering III resulted to issuance of additional 991,325,341 Series B shares with 991,325,341 Series III warrants attached. The proceeds received from this Limited Public Offering III amounted to Rp 123,916 million. The proceeds received from the Limited Public Offering III were used by the Parent Company for additional investments in subsidiaries and to increase its working capital.

- 16 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 On June 17, 2008, the stockholders held an Extraordinary Stockholders Meeting to ratify the plan of the Company on the issuance of pre-emptive rights to buy 966,427,608 Series B shares with a par value of Rp 100 per share at an exercise price of Rp 100 per share, with 1,449,641,412 Series IV warrants attached to such shares, free of charge. The Series IV warrants issued by the Company can be converted into shares during the period from January 6, 2009 to July 9, 2013. The minutes of this Extraordinary Stockholders Meeting were documented in Notarial Deed No. 141 dated June 17, 2008 of Sutjipto, S.H., public notary in Jakarta. The Limited Public Offering IV took effect upon receipt from the Chairman of Bapepam and LK of the Notice of Effectivity in his Decision Letter No. S-3859/BL/2008 dated June 16, 2008. The Limited Public Offering IV resulted to issuance of additional 964,528,953 Series B shares with 1,446,793,426 Series IV warrants attached. The proceeds received from this Limited Public Offering IV amounted to Rp 96,453 million. The funds from the Limited Public Offering IV were used by the Parent Company for additional investments in subsidiaries and to settle its obligations or loans received in order to increase its working capital ratio. c. Consolidated Subsidiaries As of September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008, the subsidiaries which were consolidated, including the respective percentages of ownership held by the Parent Company, are as follows:
Effective Percentage of Ownership Year of Domicile Nature of Business Operation/ Establishment September 30, (Unaudited) 2011 2010 Total Assets (Before Elimination) September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 20,766,074 15,669,049 3,350,606 1,382,716 1,037,720 229,276 185,820 75,414 19,396 10,166,979 10,077,226 2,596,628 815,767 1,461,437 167,576 209,286 48,319 17,616

PT Asuransi Jiwa Sinarmas MSIG PT Bank Sinarmas Tbk PT Asuransi Sinar Mas PT Sinar Mas Multifinance PT Sinarmas Sekuritas PT AB Sinar Mas Multifinance PT Shinta Utama PT Jakarta Teknologi Utama Motor PT Sinartama Gunita PT Autopro Utama Perkasa (through PT Jakarta Teknologi Utama Motor) PT Golden Tropical (through PT Shinta Utama) Sinar Mas Insurance PT Simas Money Changer PT Balai Lelang Sinarmas PT Wapindo Jasaartha PT Arthamas Konsulindo PT Arthamas Solusindo PT Komunindo Arga Digital PT Sinar Artha Solusindo PT Arthamas Informatika PT Sinar Artha Inforindo PT Artha Bina Usaha PT Sinar Artha Konsulindo PT Sinar Artha Trading

Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta

Life insurance Banking Loss insurance Multifinance Securities Multifinance General trading Workshop Shares registrar

1984 1989 1986 1996 1992 1995 1991 1999 1992

50.00% 62.61% 100.00% 100.00% 100.00% 100.00% 100.00% 99.93% 100.00%

100.00% 90.26% 100.00% 100.00% 100.00% 100.00% 100.00% 99.90% 100.00%

Jakarta Jakarta Democratic Republic Timor Leste Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta

Workshop Commodity trading Loss insurance Money changer Auction house Trading & services Insurance agency Information services Trading & services Trading & services Trading & services Information services Trading & services Insurance agency General trading

2006 2011 2011 2003 2008 2000 2000 2000 2000 2000 2000 2000 2008 2000 2008

99,88% 49,65% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

99,85% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

8,467 6,002 4,609 3,475 1,311 1,307 854 758 83 90 80 41 43 4 2 -

8,098

3,205 1,201 1,197 797 763 67 64 63 30 33 4 2

- 17 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008

Domicile

Nature of Business

Year of Operation/ Establishment

2010

Percentage of Ownership December 31, 2009 2008

2010 Rp '000,000

Total Assets (Before Elimination) December 31, 2009 2008 Rp '000,000 Rp '000,000 7,840,837 8,036,015 2,118,793 659,237 701,771 55,650 137,378 33,373 16,255 6,650,568 6,057,106 1,727,544 389,303 648,100 49,587 120,874 13,227 15,566

PT Asuransi Jiwa Sinarmas MSIG PT Bank Sinarmas Tbk PT Asuransi Sinar Mas PT Sin armas Sekurit as PT Sin ar Mas Multifinance PT Shinta Utama PT AB Sinar Mas Multifinance PT Asuransi Sumit Oto PT Jakarta Teknologi Utama Motor PT Sin artama Gunita PT Autopro Utama Perkasa (through PT Jakarta Teknologi Utama Motor) PT Simas Money Changer PT Balai Lelang Sinarmas PT Wapindo Jasaartha PT Arthamas Konsulindo PT Arthamas Solusindo PT Komunindo Arga Digital PT Sin ar Artha Solusindo PT Arthamas Informatika PT Sin ar Artha Inforindo PT Artha Bina Usaha PT Sin ar Artha Konsulindo PT Sin ar Artha Trading PT Panji Ratu Jakarta

Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta

Life insurance Banking Loss insurance Securit ies Multifinance General trading Multifinance Loss insurance W orkshop Shares registrar

1984 1989 1986 1992 1996 1991 1995 2010 1999 1992

100.00% 70.43% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 99.90% 100.00%

100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 99.86% 100.00%

100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 99.86% 100.00%

11,446,045 11,232,179 2,766,374 1,220,630 904,827 238,618 167,193 100,524 48,466 18,379

Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta

W orkshop Money changer Auction house Trading & services Insurance agency Information services Trading & services Trading & services Trading & services Information services Trading & services Insurance agency General trading Development, trading & services

2006 2003 2008 2000 2000 2000 2000 2000 2000 2000 2008 2000 2008 1998

99.88% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% -

99.85% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 99.53%

99.85% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 99.53%

8,129 3,307 1,228 1,224 811 763 73 68 63 38 36 4 2 -

7,941 3,217 1,117 1,121 754 270 55 53 46 14 21 4 3 81,498

7,746 882 1,023 1,018 696 278 43 51 26 11 4 14 4 81,132

Acquisitions and Disposals in 2011 In September 2011, PT Shinta Utama (SU) has sold its investment in 233,333,000 shares of PT Bank Sinarmas Tbk (BS), without losing control over BS. Accordingly, the gain on this sale of investment amounting to Rp 38,575 million, was recorded as Other equity components Gain on change in ownership interest in subsidiaries and associates account in the equity section of the 2011 consolidated statement of financial position. In June 2011, PT Asuransi Jiwa Sinarmas MSIG (formerly PT Asuransi Jiwa Sinarmas) (AJSM) declared and distributed dividends to Parent Company and SU totaling to Rp 765,271 million. In May 2011, AJSM received deposits for future stock subscription from Mitsui Sumitomo Insurance Co. Ltd., Japan; to purchase AJSMs shares amounting to Rp 7,000,000 million or equivalent to ownership interest of 50%. At the same time, the AJSMs shares owned by SU had been sold to Parent Company. Effective July 1, 2011, the Parent Company ownership interest in AJSM was diluted from 99.99% to 50%. Despite the reduction in ownership interest in AJSM to only 50%, the Parent Company continues to control AJSM through a majority of the AJSMs directors, thus, continues to consolidate the financial statements of AJSM. Since the Parent Company continues to control AJSM, the impact of the dilution in ownership interest amounting to Rp 2,775,240 million was recognized as Other equity components Gain on change in ownership interest in subsidiaries and associates in equity section. In 2011, the non-controlling shareholder (public) converted warrants of BS into shares, thus, the ownership of the Parent Company and SU in BS were diluted from 70.43% to 56.55% and from 7.6 % to 6.1%, respectively. The impact of the dilution in ownership interest amounting to Rp 18,188 million was recognized as Other equity components Gain on change in ownership interest in subsidiaries and associates in equity section. In April 2011, the Parent Company, PT Asuransi Sinar Mas and SU established Sinar Mas Insurance, domiciled in the Democratic Republic of Timor Leste, by investing Rp 447.5 million, Rp 3,580 million and Rp 447.5 million, respectively.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 In April 2011, PT Sinarmas Sekuritas and PT Sinar Mas Multifinance (SMF) established PT Sinar Asset Management, by investing Rp 49,999 million and Rp 1 million, respectively. In June 2011, the Parent Company increased its investment in SMF amounting to Rp 120,000 million. The increase in investment did not change its direct ownership interest in SMF. In June 2011, the Parent Company increased its investment in PT Jakarta Teknologi Utama Motor (JTUM) amounting to Rp 25,000 million, thus, increased its direct ownership interest in JTUM from 99.90% to 99.93%. In January 2011, PT Shinta Utama and third parties established PT Golden Tropical, by investing Rp 1,500 million each. Year 2010 On November 29, 2010, PT Bank Sinarmas Tbk (BS) obtained the Notice of Effectivity from the Chairman of the Capital Market and Financial Institutions Supervisory Agency (Bapepam - LK) in his letter No. S-10683/BL/2010 of its initial public offering of shares and being a public listed company. In relation with the initial public offering, the Companys and SUs ownership interest in BS were diluted from 90.26% to 70.43% and 9.74% to 7.60%, respectively. The impact of the dilution in ownership interest amounting to Rp 35,009 million was recognized as part of the Other equity components - Gain (loss) on change in ownership interest in subsidiaries and associates in the equity section of the consolidated statements of financial position (Note 39). In October 2010, the Parent Company increased its investment in PT Sinar Mas Multifinance (SMF) amounting to Rp 37,000 million. The increase in investment did not change its direct ownership interest in SMF. In October 2010 and December 2010, the Parent Company increased its investment in PT Shinta Utama (SU) amounting to Rp 3,000 million and Rp 15,500 million, respectively, thus, increased its direct ownership interest in SU from 99.0% to 99.3%. In September 2010, the Parent Company increased its investment in PT Jakarta Teknologi Utama Motor (JTUM) amounting to Rp 15,000 million, thus, increased its direct ownership interest in JTUM from 99.86% to 99.90%. In September 2010, the Parent Company increased its investment in PT Arthamas Solusindo (AMS) amounting to Rp 500 million, thus, increased its direct ownership interest in AMS from 99.60% to 99.99%. In October 2010, the Parent Company and PT Asuransi Sinar Mas (ASM) established PT Asuransi Sumit Oto, with direct ownership interest of 1% and 99%, respectively. Year 2009 In 2009, the Parent Company increased its investment in PT Bank Sinarmas Tbk (BS) amounting to Rp 100,000 million, thus, increased its direct ownership interest in BS from 87.97% to 90.26%. In February and December 2009, the Parent Company increased its investment in PT Jakarta Teknologi Utama Motor (JTUM) amounting to Rp 10,000 million and Rp 10,000 million, respectively, thus, increased its direct ownership interest in JTUM from 99.67% to 99.86%.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 In June 2009, the Parent Company and PT Shinta Utama have purchased shares of PT Asuransi Jiwa Sinarmas MSIG (formerly PT Asuransi Jiwa Sinarmas) from previous shareholders totaling to Rp 8,749 shares and 1 share, respectively, at nominal value of Rp 8,749 million and Rp 1 million, respectively, thus, increased its direct ownership interest in AJSM from 83.33% to 99.99%. In May 2009, the Parent Company increased its investment in PT Simas Money Changer (SMC) amounting to Rp 2,000 million, thus, increased its direct ownership interest in SMC from 99.65% to 99.90%. Year 2008 In May 2008, PT Sinarmas Sekuritas declared dividends for 2007 to Parent Company and PT Asuransi Sinar Mas amounting to Rp 75,000 million and Rp 1 million, respectively. In 2008, the Parent Company increased its investment in PT Bank Sinarmas Tbk (BS) amounting to Rp 150,000 million, thus, increased its direct ownership interest in BS from 81.41% to 87.97%. In July 2008, the Parent Company and SU established PT Balai Lelang Sinarmas by investing Rp 999 million and Rp 1 million, respectively. In July 2008, the Parent Company and SU established PT Artha Bina Usaha and PT Sinar Artha Trading, by investing Rp 12 million and Rp 1 million, respectively. In September 2008, the Parent Company increased its investments in shares of PT Arthamas Solusindo (AS) and PT Sinar Artha Inforindo (SAI) by Rp 8 million each, thus, increased its direct ownership interest in AS and SAI. In June 2008, the Parent Company increased its investment in PT Jakarta Teknologi Utama Motor (JTUM) amounting to Rp 8,000 million, thus, increased its direct ownership interest in JTUM from 99.29% to 99.67%. In May 2008, the Parent Company and SU have purchased shares of PT Wapindo Jasa Artha from previous shareholders, totaling to 7,000 shares and 1,000 shares, respectively, which amounted to Rp 7 million and Rp 1 million, respectively, thus, increasing the ownership interest of the Parent Company in WJ. In July 2008, the Parent Company increased its investment in shares in WJ by Rp 1,000 milion thus, increasing its ownership interest from 60.00% to 99.90%. Additional Information Eight (8) subsidiaries which were established in 2000 and three (3) subsidiaries which were established in 2008, did not engage in business activities in 2011, 2010, 2009 and 2008. In October 2004, PT Sinarmas Sekuritas (SMS) and PT Sinar Mas Multifinance established PT Sinarmas Futures (SF) which engages in commodity trading. In June 2009, SMS increased its investment in SF, thus, increased its direct ownership interest in SF. SMSs ownership interest in SF as of September 2011 and 2010 and December 31, 2010 and 2009 is 99.95% while as of December 31, 2008 is 99.75%.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 PT Bank Sinarmas Tbk (BS) obtained an approval from the Minister of Finance of the Republic of Indonesia to engage in general banking business in his Decision Letter No. KEP-156/KMK.013/1990 dated February 16, 1990. Pursuant to Bank Indonesias Decree No. 27/156/KEP/DIR dated March 22, 1995, BS was authorized to operate as a Foreign Exchange Bank. BS obtained an approval from the Bank Indonesia to open a branch which was based on Syariah principles in his Decision Letter Deputy Governor of Bank Indonesia No. 11/13/KEP.DpG/2009 dated October 27, 2009. PT Asuransi Jiwa Sinarmas MSIG (formerly PT Asuransi Jiwa Sinarmas) obtained an approval from the Minister of Finance of the Republic of Indonesia to engage in life insurance business based on its Decision Letter No. KEP-107/KM.13/1989 dated August 5, 1989. PT Asuransi Sinar Mas (ASM) obtained an approval from the Minister of Finance of the Republic of Indonesia through the Directorate General of Domestic Monetary Affairs to engage in loss insurance under Decree No KEP-2562/MD/1986 dated April 21, 1986. ASM obtained an approval from the Minister of Finance of the Republic of Indonesia to open a branch which was based on Sharia principles in his Decision Letter No. 253/KM.6/2004 dated June 25, 2004. PT Sinar Mas Multifinance obtained an approval from the Minister of Finance of the Republic of Indonesia to engage in finance leasing, factoring and consumer financing in his Decision Letter No. 441/KMK.017/1996 dated June 21, 1996. PT Sinarmas Sekuritas obtained an approval from the Capital Market Supervisory Agency or Bapepam-LK to engage in stock brokerage, stock underwriting and as an investment manager in its Decision Letters No. Kep-82/PM/1992 dated February 29, 1992, No. Kep 83/PM/1992 dated February 29, 1992 and No. Kep-02/PM/MI/2000 dated May 15, 2000, respectively. PT AB Sinar Mas Multifinance obtained an approval from the Minister of Finance of the Republic of Indonesia to engage in finance leasing, factoring and consumer financing in his Decision Letter No. 525/KMK.017/1995 dated November 17, 1995. PT Sinartama Gunita obtained an approval from Capital Market Supervisory Agency or Bapepam-LK to engage in business activities as shares registrar in its Decision Letter No. Kep-82/PM/1991 dated September 30, 1991. PT Sinarmas Futures obtained an approval from Commodity Measurement Trading Supervisory Agency to engage in business activity as measurement broker in its Decision Letter No. 889/BAPPEBTI/SI/3/2006 dated March 27, 2006. d. Employees, Directors and Commissioners The Companys management at September 30, 2011 and 2010 and December 31, 2010 based on Notarial Deed No. 7 dated June 4, 2010 of Wahyu Nurani, S.H., notary public in Jakarta, consists of the following : President Commissioner Commissioner Independent Commissioners President Director Director : : : : : Indra Widjaja Howen Widjaja Sunarto Agustinus Antonius Doddy Susanto Kurniawan Udjaja

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 The Companys management at December 31, 2009 based on Notarial Deed No. 17 dated June 22, 2009 of Wahyu Nurani, S.H., public notary in Jakarta, consists of the following : President Commissioner Independent Commissioners : : Indra Widjaja Sunarto Agustinus Antonius Doddy Susanto Howen Widjaja Kurniawan Udjaja

President Director Directors

: : :

The Companys management at December 31, 2008 based on Notarial Deed No. 79 dated June 10, 2008 of Sutjipto, S.H., public notary in Jakarta, consists of the following : President Commissioner Commissioner Independent Commissioners : : : Indra Widjaja Fuganto Widjaja Sunarto Agustinus Antonius Edward Herawan Hadidjaja Doddy Susanto Kurniawan Udjaja

President Director Operational Director Accounting and Finance Director

: : :

As of September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008, the Companys Audit Committee based on Notarial Deed No. 141 dated June 17, 2008 of Sutjipto, S.H., public notary in Jakarta, consists of the following: Chairman Members : : Sunarto Rusli Prakarsa Pande Putu Raka

The form of the Companys Audit Committee complies with Regulation No. IX.I.5 concerning the Form and Orientation of the Audit Committee Working Implementation. As of September 30, 2011 and 2010 and December 31, 2010, the Companys internal audit committee, consists of the following: Chairman Members : : Edy Tjandra Linda Widjaya

The form of the Companys internal audit committee complies with Regulation No. KEP-496/BL/2008 dated November 28, 2008. As of September 30, 2011 and 2010, December 31, 2010, 2009 and 2008, the Parent Company has a total number of employees (unaudited) of 10, 10, 10, 8 and 20, respectively. As of September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008, the Parent Company and its subsidiaries have a total number of employees (unaudited) of 10,784, 7,113, 7,853, 4,817 and 4,198, respectively.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 The aggregate salaries and benefits paid by the Parent Company and its subsidiaries to all commissioners and directors for the nine month periods ended September 31, 2011 and 2010 amounted to Rp 31,951 million and Rp 22,470 million, respectively (December 2010, 2009 and 2008: 33,605 million, Rp 21,900 million and Rp 30,865 million, respectively). The consolidated financial statements of PT Sinar Mas Multiartha Tbk and its subsidiaries for the nine month period ended September 30, 2011 were completed and authorized for issue by the Companys Directors on October 26, 2011 and are responsible for the consolidated financial statements.

2.

Summary of Significant Accounting and Financial Reporting Policies a. Basis of Consolidated Financial Statements Preparation and Measurement The interim consolidated financial statements have been prepared in accordance with Indonesian Financial Accounting Standards PSAK, which comprise the statements and interpretations issued by the Board of Financial Accounting Standards of the Indonesian Institute of Accountants and Regulation No. VIII.G.7. regarding Financial Statements Presentation Guidelines included in the Appendix of the Decree of the Chairman of the Capital Market and Financial Institution Supervisory Agency (Bapepam LK) No. KEP-06/PM/2000 dated March 13, 2000 and Circular Letter No. SE-02/PM/2002 regarding Guideliness on Preparation and Presentation of Financial Statements of Issuers or Public Listed Companies in Investment Industry. As amended with Circular Letter No. SE-03/BL/2011 regarding Guideliness on Preparation and Presentation of Financial Statements of Issuers or Publicly Listed Companies As disclosed further in relevant suceeding notes, several amended and published accounting standards were adopted effective January 1, 2011. The Company and its subsidiaries interim consolidated financial statements for the nine month period ended September 30, 2011 are in accordance with the Statements of Financial Accounting Standard (PSAK) No. 1 (Revised 2009), Presentation of Financial Statements and PSAK No. 3 (Revised 2010), Interim Financial Statements, both adopted on January 1, 2011. The said adoption of PSAK No. 1 (Revised 2009) and PSAK No. 3 (Revised 2010) have significant impact on the related presentation and disclosures in the interim consolidated financial statements. The accounting policies adopted in the preparation of the interim consolidated financial statements are consistent with those made in preparation of the consolidated financial statements for the year ended December 31, 2010, expect for the adoption of several amended PSAK efective January 1, 2011 as disclosed in this Note. The measurement basis used is the historical cost, except for certain accounts which are measured on the bases described in the related accounting policies. The consolidated financial statements, except for the consolidated statements of cash flows, are prepared under the accrual basis of accounting. The consolidated financial statements presented unclassified consolidated statements of financial position and single-step consolidated statements of income after considering the line of business of the Company and its subsidiaries.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 Effective January 1, 2010, for the purpose of the consolidated statements of cash flows, cash and cash equivalents include cash, demand deposits with Bank Indonesia, demand deposits with other banks, and placement with other banks with original maturity of three months or less from the acquisition date. Prior to January 1, 2010, for the purpose of the consolidated statement of cash flows, cash and cash equivalents include cash, demand deposits with Bank Indonesia, and demand deposit with other banks with no restriction. These changes were due to the withdrawal of PSAK 31 Accounting for Banks in 2010 which was applied by PT Bank Sinarmas Tbk, a subsidiary, as discussed above. The reporting currency used in the preparation of the consolidated financial statements is the Indonesian Rupiah (Rupiah) which is the functional currency of the Company and its subsidiaries. Unless otherwise stated, all figures presented in the consolidated financial statements are stated in millions of Rupiah. b. Adoption of Revised Statements of Financial Accounting Standards Effective January 1, 2011 The Company and its subsidiaries have adopted the following Financial Accounting Standards (PSAK) and Interpretations (ISAK) effective January 1, 2011: (1) PSAK No. 1 (Revised 2009), Presentation of Financial Statements, regulates the presentation of financial statements as to, among others, the objective, component of financial statements, fair presentation, materiality and aggregate, offsetting, distinction between current and non-current assets and short term and long-term liabilities, comparative information and consistency and introduces new disclosures such as, among others, key estimations and judgments, capital management, other comprehensive income, departures from accounting standards and statement of compliance. This standard introduces a statement of comprehensive income that combines all items of income and expenses recognized in the profit and loss together with other comprehensive income. The entities may choose to present all items in one statement, or to present two linked statements, a separate statement of income and a statement of comprehensive income. The Company and its subsidiaries have elected to present a single statement and have presented its prior periods consolidated financial statements in conformity with this PSAK to be comparative with the September 30, 2011 interim consolidated financial statements. (2) PSAK No. 3 (Revised 2010), Interim Financial Reporting, regulates the minimum presentation of interim financial statements, and also the principles of recognition and measurement in the complete or condensed interim financial statements. (3) PSAK No. 4 (Revised 2009), Consolidated and Separate Financial Statements, provides for the preparation and presentation of the consolidated financial statements for a group of entities under the control of Parent company, and the accounting for investments in subsidiaries, jointly controlled, entities and associated entities when separate financial statements are prepared as additional information.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 (4) PSAK No. 5 (Revised 2009), Operating Segments, requires reporting information of each operating segment to be in accordance with the information which are regularly reported to the decision maker in operations to make decisions on resources that will be allocated to the segment and to value its performance. This PSAK has improved the definition of segment information using the same basis as in the internal reporting. The Company and its subsidiaries have presented prior periods segment information in accordance with this PSAK to be comparative with the interim consolidated financial statements for the nine-month period ended September 30, 2011. (5) PSAK No. 7 (Revised 2010), Related Party Disclosures, requires disclosures of related party relationships, transactions and outstanding balances, including commitments, in the financial statements. (6) PSAK No. 15 (Revised 2009), Investments in Associates, prescribes the accounting for investments in associates as to determination of significant influence, accounting method to be applied, impairment in value of investments and separate financial statements. The adoption this revised PSAK has no significant impact on the interim consolidated financial statements. (7) PSAK No. 22 (Revised 2010) Business Combinations stipulates the nature of transaction or other event that meets the definition of a business combination to improve the relevance, reliability and comparability of the information that a reporting entity provides in its financial statements about a business combination and its effects. The Company and its subsidiaries prospectively adopted PSAK No. 22 (Revised 2010), Business Combinations, applicable for business combinations that occur on or after the beginning of a financial year/period commencing on or after January 1, 2011. In accordance with the transitional provisions of PSAK No. 22 (Revised 2010), starting January 1, 2011, the Company and its subsidiaries: ceased the goodwill amortization; eliminated the carrying amount of the related accumulated amortization of goodwill; and performed an impairment test of goodwill in accordance with PSAK No. 48 (Revised 2009), Impairment of Assets.

Further, the balance of negative goodwill which is recognized before January 1, 2011 amounting to Rp 129,806 was adjusted to retained earnings as of the beginning of the fiscal year, January 1, 2011 (Note 35). (8) PSAK No. 48 (Revised 2009), Impairment of Assets, including goodwill and assets acquired from business combinations before January 1, 2011, prescribes the procedures to be employed by an entity to ensure that its assets are carried at no more than their recoverable amount. An asset is carried at more than its recoverable amount if its carrying amount exceeds the amount to be recovered through use or sale of the asset. If this is the case, the asset is described as impaired and this revised PSAK requires the entity to recognize an impairment loss. This revised PSAK also specifies when an entity should reverse an impairment loss and prescribes disclosures. As described herein, the adoption of PSAK No. 48 (Revised 2009) has a significant impact on the financial reporting including for the related disclosures, mainly on the impairment test of goodwill which is required at least once a year and more frequently when indications for impairment exist.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 (9) PSAK No. 58 (Revised 2009), Noncurrent Assets Held For Sale and Discontinued Operations, requires that assets meeting the criteria to be classified as held for sale to be measured at the lower of carrying amount and fair value less costs to sell and to be presented separately in the consolidated statement of financial position. The following are the new and revised accounting standards and interpretations which should be adopted effective January 1, 2011 but which are either irrelevant or relevant but do not have material impact to the Company and its subsidiaries consolidated financial statements: PSAK 1. 2. 3. 4. 5. 6. 7. PSAK No. 2 (Revised 2009), Statements of Cash Flows PSAK No. 8 (Revised 2010), Events After the Reporting Period PSAK No. 12 (Revised 2009), Investments in Joint Ventures PSAK No. 19 (Revised 2010), Intangible Assets PSAK No. 23 (Revised 2010), Revenues PSAK No. 25 (Revised 2009), Accounting Policies, Changes in Accounting Estimates and Errors PSAK No. 57 (Revised 2009), Provisions, Contingent Liabilities and Contingent Assets

ISAK 1. 2. 3. 4. 5. 6. 7. c. ISAK 7 (Revised 2009), Consolidation Special Purpose Entities ISAK 9 (Revised 2009), Changes in Existing Decommissioning, Restoration and Similar Liabilities ISAK 10 (Revised 2009), Customer Loyalty Program ISAK 11 (Revised 2009), Distribution of Non Cash Assets to Owners ISAK 12 (Revised 2009), Jointly Controlled Entities Nonmonetary Contributions by Ventures ISAK 14 (Revised 2009), Intangible Assets Website Cost ISAK 17 (Revised 2009), Interim Financial Reporting and Impairment

Principles of Consolidation and Accounting for Business Combination Principles of Consolidation Effective January 1, 2011, the Company and its subsidiaries retrospectively adopted PSAK No. 4 (Revised 2009), Consolidated and Separate Financial Statements, except for the following items that were applied prospectively: (i) losses of a subsidiary that result in a deficit balance to noncontrolling interests (NCI); (ii) loss of control over a subsidiary; (iii) change in the ownership interest in a subsidiary that does not result in a loss of control; (iv) potential voting rights in determining the existence of control; (V) consolidation of a subsidiary that is subject to long-term restriction. Accounting Policies Effective January 1, 2011 The interim consolidated financial statements include the accounts of the Company and Subsidiaries mentioned in Note 1c, in which the Company maintains (directly or indirectly) equity ownership of more than 50%. All significant intercompany transactions and account balances (including the related significant unrealized gains or losses) have been eliminated.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 Subsidiaries are fully consolidated from the date of acquisitions, being the date on which the Company and its subsidiaries obtained control, and continue to be consolidated until the date such control ceases. Control is presumed to exist if the Company owns, directly or indirectly through Subsidiaries, more than a half of the voting power of an entity. Losses of a non-wholly owned subsidiary are attributed to the Noncontrolling Interest (NCI) even if that results in a deficit balance. In case of loss of control over a subsidiary, the Company and/or its subsidiaries: derecognizes the assets (including goodwill) and liabilities of the subsidiary; derecognizes the carrying amount of any NCI; derecognizes the cumulative translation differences, recorded in equity, if any; recognizes the fair value of the consideration received; recognizes the fair value of any investment retained; recognizes any surplus or deficit in profit or loss; and reclassifies the parents share of components previously recognized in other comprehensive income to profit or loss or retained earnings, as appropriate. NCI represents the portion of the profit or loss and net assets of the Subsidiaries attributable to equity interests that are not owned directly or indirectly by the Company, which are presented in the interim consolidated statements of comprehensive income and under the equity section of the interim consolidated statements of financial position, respectively, separately from the corresponding portion attributable to the equity holders of the parent company. Prior to January 1, 2011, losses attributable to the NCI in certain non-wholly owned subsidiaries that have exceeded the NCIs portion in the equity of the said subsidiaries were temporarily charged against the controlling shareholder unless the NCI has a binding obligation to cover these losses. Subsequent profits of the said subsidiaries shall be allocated to the controlling shareholder until the NCI's share of losses previously absorbed by the controlling shareholder has been recovered. Business Combinations Accounting Policies Effective January 1, 2011 Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, measured at acquisition date fair value and the amount of any NCI in the acquiree. For each business combination, the acquirer measures the NCI in the acquiree either at fair value or at the proportionate share of the acquirees identifiable net assets. Acquisition costs incurred are directly expensed and included in administrative expenses. When the Company and its subsidiaries acquires a business, it assesses the financial assets acquired and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. If the business combination is achieved in stages, the acquisition date fair value of the acquirers previously held equity interest in the acquiree is remeasured to fair value at the acquisition date through profit or loss.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 Any contingent consideration to be transferred by the acquirer will be recognized at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration which is deemed to be an asset or liability, will be recognized in accordance with PSAK No. 55 (Revised 2006) either in profit or loss or as other comprehensive income. If the contingent consideration is classified as equity, it should not be measured until it is finally settled within equity. At acquisition date, goodwill is initially measured at cost being the excess of the aggregate of the consideration transferred and the amount recognized for NCI over the net identifiable assets acquired and liabilities assumed. If this consideration is lower than the fair value of the net assets of the subsidiary acquired, the difference is recognized in profit or loss. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Company and/or its subsidiaries cashgenerating units (CGU) that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquired are assigned to those CGUs. Where goodwill forms part of a CGU and part of the operation within that CGU is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed of in this circumstance is measured based on the relative values of the operation disposed of and the portion of the CGU retained. Accounting Policies Prior to January 1, 2011 In comparison to the above, the following were the accounting policies applied on business combination prior to January 1, 2011: business combinations were accounted for using the purchase method. Transaction costs directly attributable to the acquisition formed part of the acquisition costs. The NCI (formerly known as minority interest) was measured at the book value of the proportionate share of the acquirees identifiable net assets; business combinations achieved in stages were accounted for as separate steps. Any additional acquired equity interest did not affect previously recognized goodwill; contingent consideration was recognized if, and only if, the Company and/or its subsidiaries had a present obligation, the economic outflow was more likely than not and a reliable estimate was determinable. Subsequent adjustments to the contingent consideration were recognized as part of goodwill.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 Restructuring Transactions Among Entities Under Common Control Acquisition of a subsidiary from entities under common control which is a reorganization of companies under common control (pooling of interest), is accounted for in accordance with PSAK No. 38 (Revised 2004) Accounting for Restructuring Transactions among Entities Under Common Control. Based on PSAK No. 38, transfer of assets, liabilities, shares and other instruments of ownership among entities under common control do not result in a gain or loss to the group or to the individual company within the same group. Since a restructuring transaction among entities under common control does not result in a change of the economic substance of the ownership of assets, liabilities, shares and other instruments of ownership which are exchanged, assets or liabilities transferred are recorded at book values as business combination using the pooling of interest method. Any difference between the transfer price and book value of each restructuring transaction between entities under common control are recorded in the account Difference in value of restructuring transaction among entities under common control, presented as a part of equity. The balance of Difference in value arising from restructuring transactions among entities under common control account is taken to the consolidated statements of comprehensive income income as realized gain or loss as a result of (1) lost of under common control substance, and (2) transfer of the assets, liabilities, equity or other ownerhip instruments to another party who is not under common control. On the other hand, when there are reciprocal transactions between entities under common control, the existing balance is set off with the new transaction, hence creating a new balance of this account. d. Foreign Currency Transactions and Balances The books of accounts of the Company and its subsidiaries are maintained in Rupiah. Transactions during the year involving foreign currencies are recorded at the rates of exchange prevailing at the time the transactions are made. At statement of financial position date, monetary assets and liabilities denominated in foreign currencies are adjusted using the Bank Indonesias middle rates of exchange prevailing at that date. The resulting gains or losses are credited in or charged to current operations. The foreign exchange gains or losses on monetary items is the difference between amortized cost in Rupiah at the beginning of the year, adjusted for effective interest and payments during the year, and the amortized cost in foreign currency translated into Rupiah at the exchange rate at the end of the year. The conversion rates used by PT Bank Sinarmas Tbk (BS) (a subsidiary engaged in banking) to translate monetary assets and liabilities as of September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008, are the Reuters rate at 16:00 WIB of Rp 8,790 and Rp 8,925 and Rp 9,010, Rp 9,395 and Rp 10,900, respectively, per US$ 1. As of September 30, 2011 and 2010, December 31, 2010, 2009 and 2008, the conversion rates used by the Company and its subsidiaries (except for BS) were the middle rates of Bank Indonesia of Rp 8,823 and Rp 8,924 and Rp 8,991, Rp 9,400 and Rp 10,950, respectively, per US$ 1.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 e. Transactions with Related Parties Accounting Policies Effective January 1, 2011 A party is considered to be related to the Company if: 1. directly, or indirectly through one or more intermediaries, the party: a) controls, is controlled by, or is under common control with, the Company and/or its subsidiaries; b) has an interest in the Company and/or its subsidiaries that gives it significant influence over the Company and/or its subsidiaries; or, c) has joint control over the Company and/or its subsidiaries; the party is an associate of the Company and/or its subsidiaries; the party is a joint venture in which the Company and/or its subsidiaries is a venturer; the party is a member of the key management personnel of the Company and/or its subsidiaries or its parent; the party is a close member of the family of any individual referred to in (a) or (d); the party is an entity that is controlled, jointly controlled or significantly influenced by or for which significant voting power in such entity resides with, directly or indirectly, any individual referred to in (d) or (e); or the party is a post employment benefit plan for the benefit of employees of the Company and/or its subsidiaries, or of any entity that is a related party of the Company and/or its subsidiaries.

2. 3. 4. 5. 6.

7.

Accounting Policies Prior to January 1, 2011 Related parties consist of the following: 1. Companies that, through one or more intermediaries, control or are controlled by, or are under common control with, the Company (including holding companies, subsidiaries, and fellow subsidiaries); Associated companies; Individuals owning, directly or indirectly, an interest in the voting power of the Company that gives them significant influence over the Company and/or its subsidiaries, and close family members of such individuals (close family members are those who can influence or can be influenced by such individuals in their transactions with the Company and/or its subsidiaries); Key management personnel, that is, those persons having authority and responsibility for planning, directing and controlling the activities of the Company and/or its subsidiaries, including commissioners, directors and managers of the Company and/or its subsidiaries and close family members of such individuals; and Companies in which a substantial interest in the voting power is owned, directly or indirectly, by any person described in (3) or (4) or over which such person is able to exercise significant influence. These include companies owned by commissioners, directors or major stockholders of the Company and/or its subsidiaries, and companies that have a common member of key management with that of the Company and/or its subsidiaries.

2. 3.

4.

5.

All transactions with related parties, whether or not done under similar terms and conditions as those done with third parties, are disclosed in the consolidated financial statements.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 f. Use of Estimates 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected. Information about significant areas of estimation uncertainty and critical judgements in applying accounting policies that have significant effect on the amount recognized in the consolidated financial statements are described on Note 3 to the the consolidated financial statements. g. Cash and Cash Equivalents Effective January 1, 2010, cash and cash equivalents include cash on hand, cash in banks, demand deposits with Bank Indonesia, demand deposits with other banks, other short term highly liquid investments with original maturity of three months or less from acquisition date and which are not used as collateral and are not restricted and funds placed in securities companies. Prior to January 1, 2010, cash and cash equivalents include cash on hand, cash in banks, demand deposit with Bank Indonesia, time deposits with original maturity of three months or less and funds placed in securities companies. h. Financial Instruments Effective January 1, 2010 the Company and its subsidiaries adopted PSAK No. 50 (Revised 2006) Financial Instruments: Presentation and Disclosures and PSAK No. 55 (Revised 2006) Financial Instruments: Recognition and Measurement. In adopting the above new standards, the Company and its subsidiaries have identified the following transition adjustments in accordance with the Technical Bulletin No. 4 concerning the Transition Provisions for the First Adoption of PSAK No. 50 (Revised 2006) and PSAK No. 55 (Revised 2006) as issued by the Indonesian Institute of Accountants. The effect of the transition to PSAK No. 50 (Revised 2006) and PSAK No. 55 (Revised 2006) to the Company and its subsidiaries consolidated statement of financial position as of January 1, 2010 is set out in the following table:

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
As reported January 1, 2010 Rp '000,000 Assets Cash and cash equivalents Short term investments Placements with other banks Securities Net investment in finance lease Factoring Receivables Loans Total Equity Retained earnings 1,754,227 273,277 6,086,273 107,867 70,497 5,322,975 13,615,116 3,597,391 As adjusted January 1, 2010 Rp '000,000 1,755,113 276,037 6,087,380 110,346 70,180 5,318,659 13,617,715 3,599,990

Transition Adjustments Rp '000,000 886 2,760 1,107 2,479 (317) (4,316) 2,599 2,599

The above transition adjustments were derived from the reassessment of impairment losses for financial assets, which represents the difference between impairment loss reserve calculated based on PSAK No. 55 (Revised 2006) and allowance for impairment losses booked as of January 1, 2010, including allowance for impairment losses calculated using the Bank Indonesia Regulation concerning allowance of productive assets by PT Bank Sinarmas Tbk, a subsidiary (Note 2o). The transition adjustments were adjusted to retained earnings on January 1, 2010. Accounting Policies Effective January 1, 2010 The Company and its subsidiaries recognize a financial asset or a financial liability in the consolidated statement of financial position, if and if only they become a party to the contractual provisions of the instrument. All regular way purchases and sales of financial instruments are recognized on the settlement date. Financial instruments are recognized initially at fair value, which is the fair value of the consideration given (in case of an asset) or received (in case of a liability). The fair value of the consideration given or received is determined by reference to the transaction price or other market prices. If such market prices are not reliably determinable, the fair value of the consideration is estimated as the sum of all future cash payments or receipts, discounted using the prevailing market rates of interest for similar instruments with similar maturities. The initial measurement of financial instruments, except for financial instruments at fair value through profit and loss (FVPL), includes transaction costs. Transaction costs include only those costs that are directly attributable to the acquisition of a financial asset or issue of financial liability and they are incremental costs that would not have been incurred if the instrument had not been acquired or issued. Such transaction costs are amortized over the terms of the instruments based on the effective interest rate method. Included in transaction costs are fees and commissions paid to agents (including employees acting as selling agents), consultants, brokerage and securities dealers, levies required by regulators and stock exchanges, as well as taxes and duties imposed on transfers made. Transaction costs do not include debt premium or discount, financing costs (financing costs), or internal administrative costs or storage costs (handling cost).

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 Effective interest rate method is a method of calculating the amortized cost of a financial asset or a financial liability and allocating the interest income or expense over the relevant period by using an interest rate that exactly discounts estimated future cash payments or receipts through the expected life of the instruments or, when appropriate, a shorter period to the net carrying amount of the financial instruments. When calculating the effective interest, the Company and its subsidiaries estimate future cash flows considering all contractual terms of the financial instruments excluding future credit losses and includes all fees and points paid or received that are an integral part of the effective interest rate. Amortized cost is the amount at which the financial asset or financial liability is measured at initial recognition, minus principal repayments, plus or minus the cumulative amortization using the effective interest rate method of any difference between the initial amount recognized and the maturity amount, minus any reduction for impairment. The classification of the financial instruments depends on the purpose for which the instruments were acquired and whether they are quoted in an active market. At initial recognition, the Company and its subsidiaries classify their financial instruments in following categories: financial assets at FVPL, loans and receivables, held-to-maturity (HTM) investments, available for sale (AFS) financial assets, financial liabilities at FVPL and other financial liabilities; and, where allowed and appropriate, re-evaluate such classification at every reporting date. Determination of Fair Value The fair value of financial instruments traded in active markets at the consolidated statement of financial position date is based on their quoted market price or dealer price quotations (bid price for long positions and ask price for short positions), without any deduction for transaction costs. When current bid and asking prices are not available, the price of the most recent transaction is used since it provides evidence of the current fair value as long as there has not been a significant change in economic circumstances since the time of the transaction. For all other financial instruments not listed in an active market, except investment in unquoted equity securities, the fair value is determined by using appropriate valuation techniques. Valuation techniques include net present value techniques, comparison to similar instruments for which market observable prices exist, options pricing models, and other relevant valuation models. In the absence of a reliable basis for determining fair value, investments in unquoted equity securities are carried at cost net of impairment. Day 1 Profit/Loss Where the transaction price in a non-active market is different from the fair value of other observable current market transactions in the same instrument or based on a valuation technique whose variables include only data from observable market, the Company and its subsidiaries recognize the difference between the transaction price and fair value (a Day 1 profit/loss) in the consolidated statement of comprehensive income unless it qualifies for recognition as some other type of asset. In cases where the data is not observable, the difference between the transaction price and model value is only recognized in the consolidated statement of comprehensive income when the inputs become observable or when the instrument is derecognized. For each transaction, the Company and/or its subsidiaries determines the appropriate method of recognizing the Day 1 profit/loss amount.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 Financial Assets 1. Financial Assets at FVPL Financial assets at FVPL include financial assets held for trading and financial assets designated upon initial recognition at FVPL. Financial assets are classified as held for trading if they are acquired for the purpose of selling in the near term. Derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Financial assets may be designated at initial recognition at FVPL if the following criteria are met: a. the designation eliminates or significantly reduces the inconsistent treatment that would otherwise arise from measuring the financial assets or recognizing gains or losses on them on a different basis; or the assets are part of a group of financial assets, financial liabilities or both which are managed and their performance evaluated on a fair value basis, in accordance with a documented risk management or investment strategy; or the financial instruments contains an embedded derivative, unless the embedded derivative does not significantly modify the cash flows or it is clear, with little or no analysis, that it would not be separately recorded.

b.

c.

Financial assets at FVPL are recorded in the consolidated statements of financial position at fair value. Changes in fair value are recognized directly in the consolidated statements of comprehensive income. Interest earned is recorded as interest income, while dividend income is recorded as part of other income according to the terms of the contract, or when the right of payment has been established. As of September 30, 2011 and 2010 and December 31, 2010, this category includes short term investments securities (bonds, units of mutual fund, shares and warrants which are traded in the Indonesia Stock Exchange) and Segregated funds net assets unit link (units of mutual fund and shares that are traded in the Indonesia Stock Exchange), and Segregated funds net assets sharia (units of mutual fund). 2. 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 not entered into with the intention of immediate or short-term resale and are not classified as financial assets at FVPL, HTM investments or AFS financial assets. After initial measurement, loans and receivables are subsequently measured at amortized cost using the effective interest method, less allowance for impairment. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees and costs that are an integral part of the effective interest rate. The amortization is included as part of interest income in the consolidated statements of comprehensive income. The losses arising from impairment are recognized in the consolidated statement of comprehensive income.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 As of September 30, 2011 and 2010 and December 31, 2010, this category includes cash, cash in banks, demand deposits with Bank Indonesia, time deposits (with original maturity of three months or less; with orginal maturity of more than three months; restricted), demand deposits with other banks, placement with other banks, securities purchased under agreements to resell, consumer finance receivables, factoring receivables, segregated funds net assets unit link (cash and cash equivalents and investment receivables), segregated funds net assets - sharia (cash and cash equivalents and investment receivables), loans, securities agent receivables, other account receivables, and other assets (other receivables, security deposits, and money transfers). 3. HTM Investments HTM investments are non-derivative financial assets with fixed or determinable payments and fixed maturities for which the Company and its subsidiaries management has the positive intention and ability to hold to maturity. When the Company or its subsidiaries sell or reclassify other than an insignificant amount of HTM investments before maturity, the entire category would be tainted and reclassified as AFS financial assets. After initial measurement, these investments are subsequently measured at amortized cost using the effective interest method, less impairment in value. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees that are an integral part of the effective interest rate. The amortization is included as part of interest income in the consolidated statements of comprehensive income. Gains and losses are recognized in the consolidated statements of comprehensive income when the HTM investments are derecognized and impaired, as well as through the amortization process using effective interest method. As of September 30, 2011 and 2010 and December 31, 2010, this category includes short term investments securities (Bank Indonesia Intervention, Credit Linked Note, Republic of Indonesia ROI Loans, bonds, export bill receivables), segregated funds net assets unit link (bonds), and segregated funds net assets sharia (sharia bonds). 4. AFS Financial Assets AFS financial assets are those which are designated as such or not classified in any of the other categories. They are purchased and held indefinitely and may be sold in response to liquidity requirements or changes in market conditions. After initial measurement, AFS financial assets are subsequently measured at fair value. The effective yield component of AFS debt securities, as well as the impact of translation on foreign currency-denominated AFS debt securities, is reported in the consolidated statements of comprehensive income. The unrealized gains and losses arising from the fair valuation of AFS financial assets are excluded from the consolidated statements of comprehensive income and are reported as net unrealized gains and losses on AFS financial assets in the equity section of the consolidated statement of financial position and in the consolidated statement of changes in equity. As of September 30, 2011 and 2010 and December 31, 2010, this category includes short term investment in bonds, Republic of Indonesia ROI Loans, shares that are traded in Indonesia Stock Exchange, and certain investments in shares (Note 17). In the absence of a reliable basis for determining the fair value, the Company and its subsidiaries certain investments in shares of stock enumerated in Note 17 are carried at cost.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 Financial Liabilities 1. Financial Liabilities at FVPL Financial liabilities are classified in this category if these result from trading activities or derivative transactions that are not accounted for as accounting hedges, or when the Company and its subsidiaries elect to designate a financial liability under this category. Changes in fair value are recognized directly in the consolidated statements of comprehensive income. As of September 30, 2011 and 2010 and December 31, 2010, the Company and its subsidiaries have not classified any financial liability as at FVPL. 2. Other Financial Liabilities This category pertains to financial liabilities that are not held for trading or not designated at FVPL upon the inception of the liability. Issued financial instruments or their components, which are not classified as financial liabilities at FVPL are classified as other financial liabilities, where the substance of the contractual arrangement results in the Company having an obligation either to deliver cash or another financial asset to the holder, or to satisfy the obligation other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of own equity shares. Other financial liabilities are recognized initially at fair value and are subsequently carried at amortized cost, taking into account the impact of applying the effective interest rate method of amortization (or accretion) for any related premium, discount and any directly attributable transaction costs. As of September 30, 2011 and 2010 and December 31, 2010, this category includes deposits and deposits from other banks, securities sold under agreement to repurchase, accounts payable, securities agent payables, accrued expenses, loan received, and other liabilities. Derivative Financial Instruments An embedded derivative is separated from the host contract and accounted for as derivative if all the following conditions are met: a. b. c. the economic characteristics and risks of the embedded derivative are not closely related to economic characteristics of the host contract; separate instrument with the same terms as the embedded derivative would meet the definition of a derivative; and hybrid or combined instrument is not recognized at fair value through profit or loss.

Freestanding and separated embedded derivatives are classified as financial assets or financial liabilities at FVPL unless they are designated as effective hedging instruments. Derivative instruments are initially recognized at fair value on the date in which a derivative transaction is entered into or bifurcated, and are subsequently re-measured at fair value.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 Derivatives are carried as assets when the fair value is positive and as liabilities when the fair value is negative. Consequently, gains and losses from changes in fair value of these derivatives are recognized immediately in the consolidated statements of comprehensive income. The management assesses whether embedded derivatives are required to be separated from host contracts when the Company first becomes party to the contract. Reassessment only occurs if there is a change in the terms of the contract that significantly modifies the cash flows that would otherwise be required. Offsetting of Financial Instruments Financial assets and liabilities are offset and the net amount reported in the consolidated statement of financial position if, and only if, there is a currently enforceable right to offset the recognized amounts and there is intention to settle on a net basis, or to realize the asset and settle the liability simultaneously. Impairment of Financial Assets The Company and its subsidiaries management assesses at each statement of financial position date whether a financial asset or group of financial assets is impaired. 1. Assets Carried at Amortized Cost The management first assesses whether objective evidence of impairment exists individually for financial assets that are individually significant, or collectively for financial assets that are not individually significant. If the management determines that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, the asset is included in a group of financial assets with similar credit risk characteristics and that group of financial assets is collectively assessed for impairment. Assets that are individually assessed for impairment and for which an impairment loss, is or continues to be recognized are not included in a collective assessment of impairment. If there is objective evidence that an impairment loss on loans and receivables or held to maturity investments carried at amortized cost has been incurred, the amount of the loss is measured as the difference between the assets carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial assets original effective interest rate (i.e., the effective interest rate computed at initial recognition). The carrying amount of the asset is reduced either directly or through the use of an allowance account. The amount of loss is charged to the consolidated statement of comprehensive income. If, in a subsequent year, the amount of the impairment loss decreases because of an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed. Any subsequent reversal of an impairment loss is recognized in the consolidated statement of comprehensive income, to the extent that the carrying value of the asset does not exceed its amortized cost at the reversal date.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 2. Assets Carried at Cost If there is objective evidence that an impairment loss has been incurred on an unquoted equity instrument that is not carried at fair value because its fair value cannot be reliably measured, the amount of the loss is measured as the difference between the assets carrying amount and the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset. 3. AFS Financial Assets In case of equity investments classified as AFS, assessment of any impairment would include a significant or prolonged decline in the fair value of the investments below its cost. Where there is evidence of impairment, the cumulative loss measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognized in the consolidated statement of comprehensive income is removed from equity and recognized in the consolidated statement of comprehensive income. Impairment losses on equity investments are not reversed through the consolidated statement of comprehensive income. Increases in fair value after impairment are recognized directly in equity. In the case of debt instruments classified as AFS, impairment is assessed based on the same criteria as financial assets carried at amortized cost. Interest continues to be accrued at the original effective interest rate on the reduced carrying amount of the asset and is recorded as part of interest income in the consolidated statement of comprehensive income. If, in subsequent year, the fair value of a debt instrument increased and the increase can be objectively related to an event occurring after the impairment loss was recognized in the consolidated statement of comprehensive income, the impairment loss is reversed through the consolidated statement of comprehensive income. Derecognition of Financial Assets and Liabilities 1. Financial Assets Financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognized when: a. b. the rights to receive cash flows from the asset have expired; the Company and/or its subsidiaries retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without material delay to a third party under a pass-through arrangement; or the Company and/or its subsidiaries has transferred its rights to receive cash flows from the asset and either (i) has transferred substantially all the risks and rewards of the asset, or (ii) has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

c.

Where the Company and/or its subsidiaries has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, and has neither transferred nor retained substantially all the risks and rewards of the asset nor transferred control of the asset, the asset is recognized to the extent of the Company and/or its subsidiaries continuing involvement in the asset. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company and/or its subsidiaries could be required to repay.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 2. Financial Liabilities A financial liability is derecognized when the obligation under the contract is discharged, cancelled or has expired. Where an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability. The recognition of a new liability and the difference in the respective carrying amounts is recognized in the consolidated statement of comprehensive income. Accounting Policies on Financial Instruments Prior to January 1, 2010 Short-term Investments (1) Time deposits Time deposits are stated at nominal value. (2) Placements with other banks Placements with other banks are stated at the outstanding balances of the placements, less allowance for possible losses, which is determined based on evaluation by management of the realizability of each placement. (3) Investments in securities for which fair value is readily available Investments in securities for which fair value is readily available consist of debt and equity securities, which are classified based on managements intention at acquisition as follows: a) Investments in securities classified as held-to-maturity were stated at cost, adjusted for unamortized premium or discount. If it was probable that the cost of such securities (including amortized premium and discount) could not be fully recovered, a permanent decline in value was considered to have occurred and, as a result, the cost basis of the individual security was written-down to its fair value. Any such write-down was recognized as loss in the current operations. Investments in securities classified as available-for-sale were stated at fair value. Unrealized gains or losses from the increase or decrease in fair value were recognized and presented as an equity component, and would not be recognized as gain or loss until realized. Investments in securities classified as trading were stated at fair values. Unrealized gains or losses from the increase or decrease in fair values were recognized in the current operations. Investments in securities classified as trading consist of securities purchased and owned for resale in the near future. Securities for trading usually show a very high frequency of purchases and sales. These securities were owned with the objective of obtaining profit from short-term price differences.

b)

c)

Transfer of securities from trading category to held-to-maturity category is recorded at fair value at the time of transfer of securities, which is considered as the cost of the securities.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 Transfer of securities from available-for-sale category to held-to-maturity category is recorded at fair value at the time of transfer of the securities. Unrealized gain or loss on the transfer is recorded as part of equity and is amortized using the straight-line method over the remaining life of the securities. If there is a permanent decline in fair value, the cost basis of the individual security is writtendown to its fair value as a new cost basis, and the amount of write-down is recognized in the current operations. For the computation of realized gains or losses, the cost of equity securities is determined using the weighted average method, while the cost of debt securities which are held-tomaturity is determined using the specific identification method. Securities Purchased Under Agreements to Resell/Securities Sold Under Agreements to Repurchase Securities purchased with a promise to be resold (reverse repo) are recognized as a receivable in the amount of the resale price of the related securities, less unearned interest income. The difference between the purchase price and the selling price is treated as unearned interest income and is recognized as income in accordance with the period since the securities were purchased until they are resold. The securities received are not recorded as assets in the consolidated statement of financial position because the ownership of the securities remains with the seller. Securities sold with a promise to be repurchased (repo) are recognized as a liability in the amount of the purchase price agreed with the customer, less interest expense (difference between the selling price and the repurchase price) which has not been realized. The difference between the selling and the repurchase price is treated as prepaid interest and is recognized as an expense in accordance with the period since the securities were sold until they are repurchased. The securities sold are recorded as assets in the consolidated statement of financial positions because the ownership of the securities remains with the seller. Derivative Assets and Liabilities All derivative instruments (including forward foreign currencies transactions for funding and trading) are recognized in the consolidated statement of financial position at fair value. Fair value is determined based on market value, pricing models or quoted prices of other instruments with similar characteristics. Derivative assets and liabilities are presented at the amount of unrealized gains or losses on derivative contracts, which are accounted for based on the purpose the Company or its subsidiaries have designated upon acquisition as trading, cash flow hedge, fair value hedge, and a hedge of net investment in foreign operation. Gain or loss on derivative contracts is accounted for as follows: 1. Gain or loss on a derivative contract not designated as a hedging instrument (or derivative contract that does not qualify as a hedging instrument) or the ineffective portion of a derivative contract designated as hedging instrument is recognized immediately in the consolidated statements of comprehensive income; The effective portion of the gain or loss on a derivative contract designated and qualifying as a cash flow hedging instrument is reported as a component of other comprehensive income under equity and reclassified into earnings in the same period or periods during which the hedged forecasted transaction affects earnings. The effect of the hedge ineffectiveness is recognized immediately in the consolidated statements of comprehensive income;

2.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 3. Gain or loss on the hedging derivative instrument in a hedge of a net investment in a foreign operation is reported in other comprehensive income as part of the cumulative translation adjustment under equity to the extent it is effective as a hedge; and Gain or loss on a derivative contract designated and qualifying as a fair value hedging instrument as well as the offsetting gain or loss on the hedged assets or liabilities attributable to the hedged risk is recognized immediately in earnings in the same accounting period. Any difference that arises representing the effect of hedge ineffectiveness is recognized immediately in the consolidated statements of comprehensive income.

4.

Accounting for Consumer Financing Transactions Consumer financing receivables are stated at the sum of total installments, less the portion of receivable financed by other parties in relation to the joint consumer financing transaction and channeling of consumer financing receivables with other parties, unearned income and allowance for doubtful accounts. Unearned income on consumer financing represents the difference between the total installments to be received and the principal amount financed. Unearned income on consumer financing is amortized and recognized as income over the term of the consumer financing agreement using the effective interest rate method. Early terminations are treated as cancellations of the existing consumer financing contracts and the resulting gains or losses are credited in or charged to current operations. The subsidiaries do not recognize interest income from consumer financing receivables which are overdue for more than 90 days. Such interest income is recognized only when received. Accounting for Factoring Transactions Factoring receivable is stated at nominal value, less retention (if any) and allowance for doubtful accounts. Factoring income is calculated based on the outstanding balance of the factoring receivable on a monthly basis. The subsidiaries do not recognize interest income from factoring receivables which are overdue for more than 90 days. Such interest income is recognized only when received. In transfer of factoring receivable transactions, the subsidiaries transfer its factoring receivables in the amount of funds received from the investors. The subsidiaries responsibility is to collect and administer the transferred factoring receivables. The difference between the interest charged to the customers by the subsidiaries and the interest charged by the investors is recognized as income by the subsidiaries and directly credited to the Factoring income account in the consolidated statements of comprehensive income. In transfer of factoring receivable transactions on a with recourse basis, the subsidiaries recognized assets and liabilities in its books. In transfer of factoring receivable transactions on a without recourse basis, the assets are presented at net amounts in the consolidated statements of financial position. Loans Loans are stated at the gross amount of its outstanding balance, less allowance for possible losses which are provided based on evaluation of the collectibility of loans. Loans granted under a syndication agreement or a credit channeling agreement are recognized in the amount of the portion of loans, the risk on which is borne by the subsidiary.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 Troubled Loans Restructuring Trouble debt restructuring involves modification of term of loan, conversion of loan to shares or other financial instruments and/or combination of both. Troubled debt restructuring involving only modification of terms of loans, that was, not involving receipt of assets (including an equity interest in the debtor) accounts for the effects of the restructuring prospectively and did not change the carrying amount of loans at the restructuring date unless that amount exceeded the total future cash receipts specified by the new terms. That is, the effects of changes in the amounts or timing (or both) of future cash receipts designated either as interest or as principal was recognized prospectively in future periods. Investment in Shares of Stock Investments in shares of stock with ownership interest of less than 20% are accounted for using the cost method. Under the cost method, an investor records its investment in the investee at cost. The investor recognizes income only to the extent that it receives profit distribution (dividends, except stock dividends) from the accumulated net profits of the investee arising subsequent to the date of acquisition by the investor. Dividends received in excess of such profits are considered as a recovery of investment and are recorded as a reduction from the cost of the investment. Deposits and Deposits from Other Banks Deposits from customers and deposits from other banks are stated at the outstanding balance. i. Segregated Funds Net Assets and Segregated Funds Contract Liabilities Unit Link Unit link is an investment and self-protection insurance product of PT Asuransi Jiwa Sinarmas MSIG (formerly PT Asuransi Jiwa Sinarmas) (AJSM), a subsidiary, wherein the policyholders have the opportunity to manage their funds together with other investors to maximize the benefit from the amount invested. AJSM issues a contract where the amount of benefit is directly linked to the market value of the investments held in the Unit link holders fund. Although the underlying investments are registered in the name of AJSM and the Unit link holders have no direct access to the specific assets, the contractual arrangements are such that the Unit link holders bear the risks and rewards of the funds investment performance. Unit link holders fund is invested in time deposits, bonds, mutual fund and shares. Such investments are stated at fair values, except for time deposits which are stated at nominal value. Payable to Unit link holders will be increased or decreased following the placement or withdrawal of Unit link holders fund and the current net asset value of the related investments. AJSM derives income from Unit link transactions, which is presented under Other income in the consolidated statements of comprehensive income.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 j. Segregated Fund Net Asset and Segregated Fund Contract Liabilities Sharia Sharia is an investment product of PT Asuransi Jiwa Sinarmas MSIG (formerly PT Asuransi Jiwa Sinarmas) (AJSM), a subsidiary, which is based on mudharabah for participant (profit sharing). Fund management in investment product of sharia is based on sharia principles. k. Loans Loans represent provision of cash or cash equivalent based on agreements with borrowers, where borrowers required to repay their debts with interest after specified periods. l. Accounting for Lease Transactions The determination of whether an arrangement is, or contains a lease is based on the substance of the arrangement at inception date of whether the fulfillment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset. A reassessment is made after inception of the lease only if one of the following applies: a. b. c. d. there is a change in contractual terms, other than a renewal or extension of the agreement; a renewal option is exercised or extension granted, unless the term of the renewal or extension was initially included in the lease term; there is a change in the determination of whether the fulfillment is dependent on a specified asset; or there is a substantial change to the asset.

Where a reassessment is made, lease accounting shall commence or cease from the date when the change in circumstances gave rise to the reassessment for scenarios a, c or d and the date of renewal or extension period for scenario b. 1. Accounting Treatment as a Lessee Leases which transfer to the Company substantially all the risks and benefits incidental to ownership of the leased item, are capitalized at the inception of the lease at the fair value of the leased property or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest in the remaining balance of the liability. Finance charges are charged directly against consolidated statements of comprehensive income. Capitalized leased assets are depreciated over the estimated useful life of the assets except if there is no reasonable certainty that the Company will obtain ownership by the end of the lease term, in which case the lease assets are depreciated over the shorter of the estimated useful life of the assets and the lease term. Operating lease payments are recognized as an expense in the consolidated statements of comprehensive income on a straight-line basis over the lease term.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 2. Accounting Treatment as a Lessor Finance lease Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of the ownership to the lessee. Amount due from lessees under finance leases are recorded at the amount of the Company and its subsidiaries net investments in finance lease. Net investments in finance lease consist of the total lease receivables plus the guaranteed residual value (option price) to be received at the end of the lease period, less unearned lease income, security deposits, and allowance for impairment losses. The difference between the finance lease receivables plus the guaranteed residual value and the acquisition cost of the leased assets is recorded as unearned lease income. This is recognized as finance lease income over the lease period at a periodic rate of return on the net investments in finance lease. The Company and its subsidiaries do not recognize interest income from finance lease receivables which are overdue for more than 90 days. Such interest income is recognized as income when already received. At the inception of the lease, if the leased asset has residual value at the end of the lease period, the lessee is required to make a security deposit which will be applied as payment to the purchase option price of the leased asset at the end of the lease period if the option to purchase is exercised by the lessee. Otherwise, the security deposit will be returned to the lessee at the end of the lease period. If the leased assets are sold to the lessee before the end of the lease period, the difference between the sales price and the net investments in finance lease is recorded as gain or loss at the time of sale. Operating lease Leases where the Company and its subsidiaries retain substantially all the risks and benefits of ownership of the asset are classified as operating leases. Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognized over the lease term on the same basis as rental income. m. Ijarah Assets Ijarah Assets are recognized at cost (refer to PSAK 16: Fixed Assets and PSAK 19: Intangible Assets). Ijarah assets, such as motorcycle, machinery heavy equipment and software are depreciated or amortized over the lease term or the economic lives of assets, whichever is shorter, where at the end of the year, these assets are assigned to customer. For the Ijarah muntahiyah bitamlik contracts (lease financing), if at the time of transfer of ownership of the Asset from the owner to the ijarah tenant by grant, then the carrying amount is recognized as an ijarah asset expense. Lease income during lease term is recognized when the benefits of assets have been handed over to the lessee.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 Ijarah income is presented net of related expenses such as, depreciation, maintenance and repairs expenses. Ijarah net income is presented as part of "interest revenues and profit sharing - loans" in the consolidated statements of comprehensive income. n. Investments in Associates Investments in associates are accounted for using the equity method of accounting and are initally recognized at cost. Associates are all entities over which the Company and/or its subsidiaries has significant influence but not control, generally accompanying a shareholding of between 20% to 50% of the voting rights. These investments include goodwill identified on acquisition, net of any impairment loss. The Company and/or its subsidiaries share of its associates post-acquisition profits or losses is recognized in consolidated statement of comprehensive income, and its share of post acquisition movements in other comprehensive income is recognized in other comprehensive income. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. When the Company and/or its subsidiaries share of losses in an associate equals or exceeds its interest in the associate, the Company and/or its subsidiaries does not recognize further losses, unless it has incurred obligations or made payments on behalf of the associate. Dilution gains or losses arising from investments in associates are recognized in the consolidated statement of comprehensive income. Unrealized gains on transactions between the Company and/or its subsidiaries and its associates are eliminated to the extent of its interest in the associates. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Adjustments are made where necessary to conform the associates accounting policies with the policies adopted by the Company and/or its subsidiaries. o. Allowance for Doubtful Accounts, Allowance for Possible Losses on Assets and Estimated Losses on Commitments and Contingencies Company is engaged in banking business Allowance for impairment losses on earnings assets Earnings assets consist of demand deposits with other banks, placements with other banks, securities, securities purchased under agreements to resell, loans, acceptance receivables, including commitments and contingencies reflected in the administrative accounts. Non-earning assets are non-financial assets, consist of foreclosed assets and abandoned properties, inter-branch account and suspend account according to Bank Indonesia regulation. Starting January 1, 2010, at each statement of financial position date, an assessment by a subsidiaries is made to determine whether there is any indication of impairment of financial assets or group of financial assets as classified held to maturity, available for sale, and loan and receivables as described in Note 2h.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 Implementation of the Transitional Provisions of Bank Indonesia for the Collective Impairment of Loans On December 8, 2009, Bank Indonesia issued a Circular Letter. 11/33/DPNP regulating the estimation of collective impairment of loans with limited experience of specific losses. For banks that do not have sufficient historical loss data to determine the amount of collective impairment on loans in accordance with the requirements under PSAK No. 55 (Revised 2006) and PAPI (2008), the formation of allowance for impairment losses to use the applicable Bank Indonesia provisions concerning "Asset Quality Rating for Commercial Banks". Starting January 1, 2010, the Company and its subsidiaries applied the transitional provisions of Bank Indonesia for collective impairment of loans which have also been applied before January 1, 2010. Prior to January 1, 2010, the determination of the quality and allowance for possible losses on earning assets as of December 31, 2010 and 2009 is based on the Decree of Bank Indonesia No. 7/2/PBI/2005 dated January 20, 2005, Bank Indonesia Circular Letter No. 7/3/DPNP dated January 31, 2005 regarding Assessment of Asset Quality of Public Banks with the latest change through Decree of Bank Indonesia No. 11/2/PBI/2009 dated January 29, 2009. Allowance for Impairment Losses on Productive Assets Allowance for impairment losses on productive assets is based on review of the quality of their productive assets, commitments and contingencies in accordance with Bank Indonesia, which classifies these productive assets within five (5) categories, with the percentage of allowance for impairment losses as follows:

Classification Current Special mention Substandard Doubtful Loss

Percentage of Allowance for Possible Losses Minimum Minimum Minimum Minimum 1.00% 5.00% 15.00% 50.00% 100.00%

Percentages are applied to the outstanding balances of the earning assets, less the collateral value in accordance with the Bank Indonesia Regulation, except for earning assets and commitments and contingencies classified as current where the rates are applied directly to the outstanding balance of earning assets and commitments and contingencies. Bank Indonesia Certificates (SBI), placements with Bank Indonesia (BI Intervention) and Government bonds are not not subject to allowance for impairment losses. Allowance for impairment losses on commitments and contingencies (except on acceptances) was provided is presented under Estimated losses on commitments and contigencies account.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 The outstanding balances of earning assets are written-off against the respective allowance for possible losses when management believes that the earning assets should be written-off because operationally, the debtor cannot afford to repay and/or the earning assets are difficult to be realized or collected. Recovery of earning assets previously written-off is recorded as an addition to the allowance for possible losses on earning assets during the period of recovery. If the recovery exceeds the principal amount, the excess is recognized as interest income. Allowance for Impairment Losses on Non-Productive Assets Allowance for impairment losses on nonproductive assets is determined in accordance with Bank Indonesia regulation regarding Assessment of Quality Asset of Commercial Banks. The subsidiary establishes an allowance for impairment losses of non-productive assets based on the evaluation of the quality of each non-productive assets in accordance with the provisions of Bank Indonesia, which classifies the non-productive assets in four (4) categories based on the length of the asset is owned by the subsidiary with the amount percentage of allowance for impairment losses as follows:

Classification Current Substandard Doubtful Loss

Percentage of Allowance for Possible Losses Minimum Minimum Minimum 1.00% 15.00% 50.00% 100.00%

The Parent Company and other subsidiaries are engaged in non-banking business An allowance for impairment losses on receivables is provided based on managements evaluation of the collectibility of the individual receivable account (short-term investments, securities purchased under agreements to resell, consumer financing receivables, finance lease receivables, factoring receivables, premiums and reinsurance receivables and other accounts receivable) at the end of the year. Effective January 1, 2010, accounting policy on allowance for impairment losses on receivables is described in Note 2h. Prior to January 1, 2010, the outstanding balance of receivables is written-off when management believes that such receivables is determined to be definitely uncollectible or unrealizable. The collections or recovery from receivables written-off is recorded as an addition to or recovery of allowance for doubtful accounts at the time of collection or recovery. p. Investment Properties Investment properties, except land, are measured at cost, including transaction costs, less accumulated depreciation and any impairment loss. The carrying amount includes the cost of replacing part of an existing investment property at the time that cost is incurred if the recognition criteria are met; and excludes the costs of day-to-day servicing of an investment property.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 Investment properties are derecognized when either they have been disposed of or when the investment property is permanently withdrawn from use and no future economic benefit is expected from its disposal. Any gains or losses on the retirement or disposal of an investment property are recognized in the consolidated statement of comprehensive income in the year of retirement or disposal. Investment properties, depreciated over its estimated useful life using the straight-line method at 5% per annum. Transfers are made to investment properties when, and only when, there is a change in use, evidenced by ending of owner-occupation, commencement of an operating lease to another party or ending of construction or development. Transfers are made from investment properties when, and only when, there is a change in use, evidenced by commencement of owner-occupation or commencement of development with a view to sale. q. Property and Equipment Direct Acquisitions Property and equipment, except land, are carried at cost, excluding day-to day servicing, less accumulated depreciation and any impairment in value. Land is not depreciated and is stated at cost less any impairment in value (if any). The initial cost of property and equipment consists of its purchase price, including import duties and taxes and any directly attributable costs in bringing the property and equipment to its working condition and location for its intended use. Expenditures incurred after the property and equipment have been put into operations , such as repairs and maintenance costs, are normally charged to operations in the year such costs are incurred. In situations where it can be clearly demonstrated that the expenditures have resulted in an increase in the future economic benefits expected to be obtained from the use of the property and equipment beyond its originally assessed standard of performance, the expenditures are capitalized as additional costs of property and equipment. All property and equipment, except for land and buildings, are depreciated over their estimated useful lives using the double-declining-balance method. Buildings are depreciated over their estimated useful lives using the straight-line method. The depreciation rates are as follows: Rate Buildings: Permanent Non-permanent Property and equipment other than buildings: Class I : Assets with useful lives of less than 4 years Class II : Assets with useful lives of between 4 to 8 years

5% 10%

50% 25%

The carrying values of property and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying values may not be recoverable. When each major inspection is performed, its cost is recognized in the carrying amount of the item of property and equipment as a replacement if the recognition criteria are satisfied. Such major inspection is capitalized and amortized over the next major inspection activity.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 An item of property and equipment is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. When assets are sold or retired, the cost and related accumulated depreciation and any impairment loss are eliminated from the accounts. Any gains or loss arising from derecognition of property and equipment (calculated as the difference between the net disposal proceeds, if any, and the carrying amount of the item) is included in the consolidated statement of comprehensive income in the year the item is derecognized. The assets residual values, useful lives and depreciation method are reviewed and adjusted if appropriate, at each financial year end. Construction in Progress Construction in progress represents property and equipment under construction which is stated at cost and is not depreciated. The accumulated costs will be reclassified to the respective property and equipment account and will be depreciated when the construction is substantially complete and the asset is ready for its intended use. r. Assets for Lease Assets for lease are stated at cost, less accumulated depreciation and any impairment in value (if any). Accounting policy for assets for lease is the same with directly acquired property and equipment (Note 2q). Rental income is presented under Operating lease income account in the consolidated statements of comprehensive income over the lease period (Note 2l). s. Property under Build, Operate and Transfer Agreement Property under build, operate and transfer agreement is an asset, the development of which, was funded by the Company until the asset is ready for operation and then managed by the Company until such time the asset will be transferred to asset holders at the end of concession period. Property under build, operate and transfer agreement in progress is stated at cost and not depreciated. Accumulated costs will be transferred to property under build, operate and transfer account and will be depreciated when the asset is ready for use. t. Prepaid Expenses Prepaid expenses are amortized over their beneficial or contract periods using the straightline method. u. Foreclosed Properties Foreclosed properties in relation to the settlement of financing facilities and loan are recorded at net realizable value. The excess of the carrying value of the receivable over the net realizable value of the foreclosed properties is charged to allowance for doubtful accounts or allowance for possible losses. If the net realizable value of the foreclosed property is more than the carrying value of the receivable or loan, the foreclosed property is recorded at the amount of the receivable or loan. The difference between the carrying value of the foreclosed properties and the proceeds from sale of such properties is recorded as a gain or loss in the period the properties are sold. Expenses for maintaining foreclosed properties are charged to operations as incurred.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 The carrying value of the asset is written-down to recognize a permanent decline in value of the foreclosed property. Any such write-down is charged to current operations. The foreclosed properties of subsidiaries which engaged in banking and multifinance, are provided with allowance for possible losses in accordance with the regulation of Bank Indonesia (Note 2o). v. Deferred Acquisition Costs Expenses incurred relating to new insurance contracts acquired, including commission, incentives and certain selling expenses, are deferred and are amortized based on actuarial calculation of the liability for future policy benefits as determined using the Net Level Premium Method. w. Impairment of Non - Financial Assets The Group assesses at each annual reporting period whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset (i.e.an intangible asset with an indefinite useful life, an intangible asset not yet available for use, or goodwill acquired in a business combination) is required, the Group makes an estimate of the assets recoverable amount. An assets recoverable amount is the higher of an assets or CGUs fair value less costs to sell and its value in use, and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. Impairment losses of continuing operations are recognized in the consolidated statement of comprehensive income as impairment losses. In assessing the value in use, the estimated net future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used to determine the fair value of the assets. These calculations are corroborated by valuation multiples or other available fair value indicators. Impairment losses of continuing operations, if any, are recognized in the interim consolidated statements of comprehensive income under expense categories that are consistent with the functions of the impaired assets. An assessment is made at each annual reporting period as to whether there is any indication that previously recognized impairment losses recognized for an asset other than goodwill may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognized impairment loss for an asset other than goodwill is reversed only if there has been a change in the assumptions used to determine the assets recoverable amount since the last impairment loss was recognized. If that is the case, the carrying amount of the asset is increased to its recoverable amount. The reversal is limited so that the carrying amount of the assets does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Reversal of an impairment loss is recognized in the consolidated statement of comprehensive income. After such a reversal, the depreciation charge on the said asset is adjusted in future periods to allocate the assets revised carrying amount, less any residual value, on a systematic basis over its remaining useful life.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 Effective January 1, 2011, goodwill is tested for impairment annually (as at December 31) and when circumstances indicate that the carrying value may be impaired. Impairment is determined for goodwill by assessing the recoverable amount of each CGU (or group of CGUs) to which the goodwill relates. Where the recoverable amount of the CGU is less than their carrying amount, an impairment loss is recognized. Impairment losses relating to goodwill cannot be reversed in future periods. Prior to January 1, 2011, goodwill is amortized over a period of five (5) years. x. Noncurrent Assets Held for Sale Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recoverd pricipally through as sale transaction rather than through continuing use. All of the assets and liabilities of that subsidiary are classifed as held for sale when the criteria discribed above are met, regardless of whether the Company and/ or its subsidiaries will retain a non-controlling interest in its former subsidiary after the sale. Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell. y. Deposits and Deposits from Other Banks Deposits are liabilities to customers in the form of demand deposits, savings deposits and time deposits. Demand deposits represent deposits of customers which may be used as instruments of payment, and which may be withdrawn at any time by cheque, or other orders of payment or transfers. Demand deposits are stated at the amount due to the demand deposit account holders. Savings deposits represent deposits of customers which may only be withdrawn when certain agreed conditions at the account opening are met. These deposits may not be withdrawn by cheque or other equivalent instruments, except by using specific withdrawal slip which can only be validated at the depository bank. Savings deposits are stated at the amount due to the savings account holders. Time deposits represent deposits of customers which may only be withdrawn after a certain time in accordance with the agreement with the customers at the time of placement, or the customers will be fined or penalized if withdrawals are made before maturity. Time deposits are stated at the nominal amount due to the time deposit account holders. Deposits include syariah deposits and unrestricted investments consisting of: Savings Wadiah is entrusted funds in the form of savings where income fund owners get a bonus. Unrestricted investments in current accounts, savings and time deposits represent deposits of customers' funds that provide benefits for the owner of funds from Islamic unit revenue for the use of these funds in accordance with the ratio determined and approved previously.

Deposits from other banks are liabilities to other banks in the form of demand deposits and call money less than/or 90 days and time deposits with original maturities of each agreement.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 z. Liability for Future Policy Benefits Liability for future policy benefits represents the present value of estimated future policy benefits to be paid to policyholders or their heirs less present value of estimated future premiums to be received from the policyholders, recognized consistently with the recognition of premium income. Liability for future policy benefits is stated in the consolidated statement of financial position in accordance with actuarial calculation. The increase (decrease) in liability for future policy benefits is recognized as an expense (income) in the current year. aa. Stock Issuance Costs Stock issuance costs are deducted from the additional paid-in capital portion of the related proceeds from issuance of shares and are not amortized. ab. Recognition of Interest Revenues, Interest Expenses, Sharia Revenue, and Revenue Sharing Distribution Starting January 1, 2010, interest income and interest expense for all financial instruments are recognized in the consolidated statement of income on accrual basis using the effective interest rate method. Transaction costs that occur and are directly attributable to the acquisition or issuance of financial instruments not measured at fair value through profit and loss are amortized over the life of financial instruments using the effective interest rate method and recorded as part of interest income for financial assets directly attributable transaction costs, and as part of interest expense related to transaction costs of financial liabilities. If a financial asset or group of similar financial assets in the category are held to maturity, loans and receivables, and available for sale are impaired, the interest income earned after the impairment loss is recognized based on the interest rate used for discounting future cash flows in calculating impairment losses. Prior to January 1, 2010, interest revenues and expenses are recognized on accrual basis, except for interest revenues on loans and other earning assets that were classified as nonperforming. These interest revenues were recognized only when such interests were actually received. Interest revenues recognized or recorded but not yet received, were cancelled when the loans were classified as non-performing. Such interest revenues were recorded as contingent receivables in the administrative accounts and are recognized as revenues when cash was received. Discounts and premiums of securities were amortized using the straightline method and recorded as part of the interest income and interest expense. Loans and other earning assets (excluding securities) are considered non-performing when they are classified as substandard, doubtful or loss. Securities are categorized as nonperforming when the issuer of securities defaulted on its interest and/or principal payments. Cash payments of debtors pertaining to loans classified as doubtful and loss were applied against loan principal balances, and any excess of cash receipts over the outstanding principal balance is recognized as interest payment on the said loans. Revenue and Expense / Profit Sharing Sharia Revenue consists of income from murabaha sharia, income from ijarah assets (lease), and from the results of financing.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 Murabaha and revenue from ijarah muntahiyah bittamlik are recognized over the contract period on an accrual basis. Revenues for the results of financing are recognized when received or within the period of entitlement based on profit sharing portion (ratio) agreed. Fees and Commissions Related to Financial Instruments Since January 1, 2010, commission income and expense fees associated with the acquisition of financial instruments categorized as held to maturity, loans and receivables, and available for sale, or related to a period of time and that the amount is significant, is recorded as part of the fair value of financial assets or financial liability and amortized over the period using the effective interest rate. Meanwhile, fees and commissions that are not significant in amounts are recognized as revenue when the revenue is received or expense at the time of payment. Prior to January 1, 2010, commissions and fees, directly or indirectly related to loan activities and loan periods and that are significant in amounts are recorded as deferred revenues and expenses, and were systematically amortized within the periods of the respective loan and borrowings. If the loan and borrowings had been settled before their maturity dates, the related deferred revenues and expenses on commissions and fees were recognized upon settlement of loans and borrowings. Revenues and expenses on commissions and fees that are insignificant amounts are recognized as revenues or expenses upon receipt or payment. Fees and Commission Fees and commissions that are not related to the issuance or acquisition of financial instruments and have maturity terms in which amounts are significant, are treated as deferred income or expenses and amortized using the straight-line method over the term of the relevant transaction. Meanwhile, revenue and expense fees and commissions that are not significant are recognized immediately as income or expenses on the transaction. Other fees and commission revenues not related to credit, such as bancaassurance services, and revenues associated with import and export bank guarantee, are recognized as revenue associated with the services provided. Other Income and Expense Income from assets for lease (operating lease) is recognized using the straight line method over the lease period (Note 2r). Administration income incurred in relation with lease, consumer finance, and factoring transaction are recognized when earned. Other income (expense) are recognized when earned (incurred) and in accordance with their beneficial period. ac. Recognition of Underwriting Income and Expenses Underwriting Income Premiums on insurance and reinsurance contracts are recognized as revenue over the policy contract period in proportion to the insurance coverage provided. Premiums from coinsurance are recognized as income based on the subsidiarys proportionate share in the premium. Premium due to the reinsurance company is recognized as reinsurance premium during the period of reinsurance contract in proportion to the insurance coverage received.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 Unearned premiums for each type of coverage are calculated in aggregate using a certain percentage in accordance with Decree of the Minister of Finance of the Republic of Indonesia No. 424/KMK.06/2003, dated September 30, 2003. The increase or decrease in unearned premiums represents the difference between the balances of unearned premiums in the current year and the prior year, and is charged to or credited in the consolidated statement of comprehensive income of the current year. The subsidiary reinsured part of its total accepted risk to other insurance and reinsurance companies. The amount of premium paid or part of premium for prospective reinsurance transactions is recognized as reinsurance premiums within the reinsurance contract period, in proportion to the insurance coverage provided. Payment or obligation for retrospective reinsurance transactions is recognized as reinsurance receivable in an amount equivalent to the recorded liability in connection with the reinsurance contract. Underwriting Expenses Claims and benefits consist of settled claims, claims in process, including claims incurred but not yet reported, and claims settlement expenses. Claims are recognized as expense when the obligation to settle the claims are incurred. Parts of claims recovered from reinsurers are recorded and recognized as deduction from claims expenses in the same period when claims expenses are recognized. Subrogation rights are recognized as deduction from claims expenses when realized. Claims in process (estimated own retention claims) are computed based on estimated loss from own retention claims that are in process at statement of financial position date, including claims incurred but not yet reported. The changes in estimated own retention claims are recognized in the consolidated statements of income at the time of change. The increase or decrease in estimated own retention claims represents the difference between the estimated own retention claims for the current year and the prior year. Estimated claims liability for death insurance, health and personal accident insurance are provided based on actuary computations. Commissions due to insurance brokers, agents and other insurance companies in connection with the insurance coverage are recorded as commission expense, whereas commissions obtained from reinsurance transactions are recorded as deduction from commission expense, and are recognized in the consolidated statements of comprehensive income when incurred. If commission income is more than the total commission expense, the difference is presented as commission income in the consolidated statement of comprehensive income of the current year. ad. Accounting for Insurance under Sharia Principles In the insurance accounting system of branch using Sharia principles, a subsidiary separates the funds belonging to the stockholders from those to Takaful participants. The reporting of the takaful participants fund reflects the financial position, result of operations and the participants surplus or deficit. The allocation of profit sharing (mudharabah) on the underwriting surplus and investment income is distributed to participants who never make any claims during the insurance period.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 ae. Recognition of Shares Administration, Underwriting and Stock Brokerage Fees and Investment Management Income Shares administration fees, stock brokerage fees and underwriting fees are recognized as income when the services for trading of securities in the stock exchange and underwriting activities are performed. Investment management income is recognized based on agreed conditions as stated in the Collective Investment Contract. af. Employee Benefits Short-term employee benefits Short-term employee benefits are in the form of wages, salaries and social security (Jamsostek) contribution and bonuses. Short-term employee benefits are recognized at its undiscounted amount as a liability, after deducting any amount already paid, in the consolidated statement of financial position, and as an expense in the consolidated statements of comprehensive income. Post-employment benefits Post-employment benefits are an unfunded defined-benefit plans which amounts are determined based on years of service and salaries of the employees at the time of pension. The actuarial valuation method used to determine the present value of defined-benefit reserve, related current service costs and past service costs is the Projected Unit Credit. Current service costs, interest costs, vested past service costs and effects of curtailments and settlements (if any) are charged directly to current operations. Past service costs which are not yet vested and actuarial gains or losses for working (active) employees are amortized during the employees average remaining years of service, until the benefits become vested. ag. Income Tax Current tax expense is determined based on the taxable income for the year computed using prevailing tax rates. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax liabilities are recognized for all taxable temporary differences and deferred tax assets are recognized for deductible temporary differences to the extent that it is probable that taxable income will be available in future periods against which the deductible temporary differences can be utilized. Deferred tax is calculated at the tax rates that have been enacted or substantively enacted at statement of financial position date. Deferred tax is charged to or credited in the consolidated statements of income, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also charged to or credited directly in equity. Deferred tax assets and liabilities are offset in the consolidated statement of financial positions, except if these are for different legal entities, in the same manner the current tax assets and liabilities are presented. Amendments to tax obligations are recorded when an assessment is received or, if appealed against by the Company and/or its subsidiaries, when the result of the appeal is determined.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 ah. Earnings Per Share Earnings per share are computed by dividing net income by the weighted average number of shares outstanding during the year. Diluted earnings per share are computed by dividing net income by the weighted average number of shares outstanding during the year as adjusted for the effects of all potentially dilutive ordinary shares. ai. Segment Information Segment information is prepared using the accounting policies adopted for preparing and presenting the consolidated financial statements. Effective January 1, 2011, PSAK No. 5 (Revised 2009) requires operating segments to be identified on the basis of internal reports about components of the Company and its subsidiaries that are regularly reviewed by the chief operating decision maker in order to allocate resources to the segments and to assess their performances. In contrast, the predecessor standard required the Company and its subsidiaries to identify two sets of segments (business and geographical), using a risks and returns approach. An operating segment is a component of an entity: a). That engages in business activities which it may earn revenue and incur expenses (including revenue and expenses relating to the transcation with other components of the same entity); b). Whose operating results are reviewed regularly by the entitys chief operating decision maker to make decision about resources to be allocated to the segments and assess its performance; and c). For which discrete financial information is available. Information reported to the chief operating decision maker for the purpose of resources allocation and assessment of its performance is more specifically focused on the category of each product, which is similar to the business segment information reported in the prior period. aj. Provisions Provisions are recognized when the Company and its subsidiaries have present obligation (legal or constructive) as a result of a past event, it is proable that the Company and its subsidiaries will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows. When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 ak. Events after the Reporting Period Post year-end events that provide additional information about the Company and its subsidiaries financial position at the date of the statement of financial position (adjusting events), if any, are reflected in the consolidated financial statements. Post year-end events that are not adjusting events are disclosed in the notes to consolidated financial statements when material. 3. Management Use of Estimates, Judgments and Assumptions on Financial Instruments In the application of the Company and its subsidiaries accounting policies, which are described in Note 2 to the consolidated financial statements, managements is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and assumptions are based on historical experience and other factors that are considered to be relevant. Management believes that the following represent a summary of the significant estimates, judgments and assumptions made that affected certain reported amounts of and disclosures in the consolidated financial statements: Fair Value of Financial Assets and Financial Liabilities Effective January 1, 2010, PSAK No. 55 (Revised 2006), Financial Instruments : Recognition and Measurement requires that certain financial assets and financial liabilities be carried at fair value, which requires the use of accounting estimates and judgment. While significant components of fair value measurement are determined using verifiable objective evidence (i.e. foreign exchange rates, interest rates), the timing and amount of changes in fair value, would differ using a different valuation methodology. The fair value of financial assets and financial liabilities are set out in Note 56. Financial Assets Not Quoted in Active Market Effective January 1, 2010, the Company and its subsidiaries classify financial assets by evaluating, among others, whether the asset is quoted or not in an active market. Included in the evaluation on whether a financial asset is quoted in an active market is the determination on whether quoted prices are readily and regularly available, and whether those prices represent actual and regularly occurring market transactions on an arms length basis. Allowance for Impairment of Financial Instruments Allowance for impairment losses is maintained at a level considered adequate to provide for potentially uncollectible receivables. Effective January 1, 2010, the Company and its subsidiaries assess specifically at each financial position date whether there is objective evidence that a financial asset is impaired (uncollectible). The level of allowance is based on past collection experience and other factors that may affect collectability such as the probability of insolvency or significant financial difficulties of the debtor or significant delay in payments. If there is objective evidence of impairment, timing and collectible amounts are estimated based on historical loss data. Provision for doubtful accounts is provided on accounts specifically identified as impaired. Loans and receivables written off are based on managements decisions that the financial assets are uncollectible or cannot be realized in whatsoever actions will be taken. Evaluation of receivables to determine the total allowance to be provided, is performed periodically during the year. Therefore, the timing and amount of provision for doubtful accounts recorded at each period might differ based on the judgments and estimates that have been used.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 The carrying value of the Company and its subsidiaries loans and receivables as of September 30, 2011 and 2010 and December 31, 2010 are as follows:
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Cash and cash equivalents Securitiies purchased under agreements to resell Short term investment - placement with other banks Short term investment - time deposits Net investment in finance lease Consumer financing receivables Factoring receivables Segregated funds net assets unit link - time deposits Segregated funds net assets unit link - cash in banks Segregated funds net assets unit link - investment receivables Segregated funds net assets unit link - other receivable Segregated funds net assets sharia - time deposits Segregated funds net assets sharia - cash in banks Segregated funds net assets sharia - investment receivables Securities agent receivables Other receivables - net Loans - net Investment in shares Other assets Total 8,383,778 77,931 421,961 39,136 140,496 580,709 344,251 102 36,190 2,407 150 6,600 17,143 396 336,676 851,384 9,066,488 342,230 12,248 20,660,276 2,818,992 30,562 379,864 17,586 172,375 354,775 129,296 240,000 25,054 2,523 13,655 298 380,597 401,936 6,062,636 337,182 11,185 11,378,516 2010 Rp '000,000 1,980,945 107,141 706,189 33,543 163,869 376,961 187,558 984,135 35,927 2,271 3,000 4,599 504 165,481 542,356 6,934,157 337,182 22,496 12,588,314 December 31, 2009 Rp '000,000 1,754,227 36,591 273,277 10,679 107,867 393,867 70,497 9,882 2,185 7,000 2,779 372 70,197 543,576 5,322,975 188,725 11,703 8,806,399 2008 Rp '000,000 824,498 84,998 172,186 64,287 384,344 72,601 19,820 2,183 500 2,191 436 115,441 650,034 4,198,780 180,646 7,634 6,780,579

Estimates and Assumptions The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial period are disclosed below. The Company and its subsidiaries based its assumptions and estimates on parameters available when the consolidated financial statements were prepared. Existing circumstances and assumptions about future developments may change due to market changes on circumstances arising beyond the control of the Company and its subsidiaries. Such changes are reflected in the assumptions when they occur: a. Fair Value of Financial Assets and Financial Liabilities Indonesian Financial Accounting Standards require measurement of certain financial assets and liabilities at fair values, and the disclosure requires the use of estimates. Significant component of fair value measurement is determined based on objective evidence derived from diversification (i.e. foreign exchange, interest rate), while timing and amount of changes in fair value might differ due to different valuation method used. The fair value of financial assets and financial liabilities are set out in Note 56. b. Estimated Useful Lives of Investment Properties, Property and Equipment, Property Under Build, Operate and Transfer Agreement and Assets for Lease The useful lives of each of the item of the Company and its subsidiaries investment properties, property and equipment, property under build, operate and transfer agreement and assets for lease are estimated based on the period over which the asset is expected to be available for use. Such estimation is based on a collective assessment of similar business, internal technical evaluation and experience with similar assets. The estimated useful life of each asset is reviewed periodically and updated if expectations differ from previous estimates due to physical wear and tear, technical or commercial obsolescence and legal or other limits on the use of the asset. It is possible, however, that future results of operations could be materially affected by changes in the amounts and timing of recorded expenses brought about by changes in the factors mentioned above. A reduction in the estimated useful life of any item of investment properties, property and equipment, property under build, operate and transfer agreement and assets for lease would increase the recorded depreciation and decrease the carrying values of these assets.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 There is no change in the estimated useful lives of investment properties, property and equipment, property under build, operate and transfer agreement and assets for lease during the period. The carrying value of these assets are as follows:
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Property and Equipment Assets for Lease Property under Build, Operate and Transfer Agreement Investment Properties Total 953,951 44,636 68,344 28,936 1,095,867 688,683 29,964 72,648 11,245 802,540 December 31, 2010 2009 2008 Rp '000,000 Rp '000,000 Rp '000,000 738,093 33,624 71,216 29,731 872,664 635,449 25,956 74,089 87,811 823,305 499,708 31,101 57,527 114,466 702,802

c.

Valuation of Insurance Contract Liabilities (Life Insurance and Non-Life Insurance) Liability for Future Policy Benefits The reserve was calculated based on certain data using the prospective net premium (pure) methods and/ or zilmer modification with maximum of 30% for the first year costs of sum insured, using the actuarial assumptions that were reported to the Minister of Finance, the assumptions used related to mortality and interest rate. Reserve for Unearned Premium and Estimated Own Retention Claim For unearned premium, insurance program was computed with minimum 10% of the net premium for policies with a term of not more than 1 month and 40% of net premium for policies with term more than 1 month, while for estimated own retention claim, there are 2 types, first, the reserve was computed using the actual claim data until the valuation date, and second, INBR (Incurred But Not Reported) was computed for the group health insurance, using claim ratio method or one of triangle method, the computations for INBR are consistently applied. The carrying values of these reserves are as follows:
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Liability for future policy benefits Unearned premium and estimated own retention claims Total 6,569,452 890,739 7,460,191 2,576,263 639,205 3,215,468 December 31, 2009 Rp '000,000 3,372,899 494,606 3,867,505

2010 Rp '000,000 2,481,280 674,369 3,155,649

2008 Rp '000,000 5,119,479 456,880 5,576,359

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 d. Post-employment Benefits The determination of the obligation and post-employment benefits is dependent on the selection of certain assumptions used by actuary in calculating such amounts. Those assumptions are described in Note 51 and include, among others, discount rate and rate of salary increase. Actual results that differ from the Company and its subsidiaries assumptions are accumulated and amortized over future periods and therefore, generally affect the recognized expense and recorded obligation in such future periods. While it is believed that the Company and its subsidiaries assumptions are reasonable and appropriate, significant differences in actual experience or significant changes in assumptions may materially affect the amount of Company and its subsidiaries defined benefit post-employment reserve. As of September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008, defined-benefit post-employment reserve amounted to Rp 75,557 million, Rp 50,979 million, Rp 64,447 million, Rp 38,979 million and Rp 27,051 million, respectively (Note 51). e. Deferred Tax Assets Deferred tax assets are recognized for all temporary differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases to the extent that it is probable that taxable profit will be available against which the temporary differences can be utilized. Significant management estimates are required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies. As of September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 deferred tax assets amounted to Rp 4,922 million, Rp 6,982 million, Rp 3,560 million, Rp 16,811 million, and Rp 4,411 million, respectively, and deferred tax liabilities amounted to to Rp 50,106 million, Rp 41,866 million, Rp 41,992 million, Rp 33,466 million, and Rp 23,332 million, respectively (Note 53). f. Impairment of Non-Financial Assets Impairment review is performed when certain impairment indicators are present. Determining the fair value of assets requires the estimation of cash flows expected to be generated from the continued use and ultimate disposition of such assets. Any significant changes in the assumptions used in determining the fair value may materially affect the assessment of recoverable values and any resulting impairment loss could have a material impact on results of operations. The carrying value of these assets are as follows:
September 30, (Unaudited) December 31, 2011 2010 2010 2009 2008 Rp '000,000 Rp '000,000 Rp '000,000 Rp '000,000 Rp '000,000 Property and Equipment Assets for Lease Property under Build, Operate and Transfer Agreement Investment Properties Foreclosed Properties Total 953,951 44,636 68,344 28,936 82,703 1,178,570 688,683 29,964 72,648 11,245 70,504 873,044 738,093 33,624 71,216 29,731 71,239 943,903 635,449 25,956 74,089 87,811 65,294 888,599 499,708 31,101 57,527 114,466 74,293 777,095

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 4. Cash and Cash Equivalents This account consists of:
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Cash on hand Rupiah Foreign currency (Note 60) Total - Cash on hand Cash in banks Related Party (Note 55) Foreign currency (Note 60) Bank International Ningbo, China Third parties Rupiah PT Bank Central Asia Tbk PT Bank Internasional Indonesia Tbk PT Bank Negara Indonesia (Persero) Tbk PT Bank CIMB Niaga Tbk PT Bank Mandiri Syariah PT Bank Rakyat Indonesia (Persero) Tbk PT Bank Mandiri (Persero) Tbk PT Bank CIMB Niaga Syariah PT Bank Danamon Indonesia Tbk Deutsche Bank, Jakarta PT Bank Permata Tbk PT Bank Mega Tbk PT Bank ICB Bumi Putera Tbk PT Bank Bukopin Tbk PT BPR Palu Lokadana PT BPR Modern Express PT BPR Irian Sentosa Pusat PT BPR Palu Masohi PT Bank Central Mitra Bawana PT Bank UOB Indonesia Others (below Rp 500 million each) Subtotal Foreign currency (Note 60) PT Bank Central Asia Tbk PT Bank Mandiri (Persero) Tbk Deutsche Bank AG PT Bank Internasional Indonesia Tbk PT Bank UOB Sumitomo Mitsui Banking Corporation, Indonesia Standard Chartered Bank, Indonesia Bank of China Wachovia Bank, National Association, New York, USA OCBC, Singapore PT Bank Internasional Indonesia - Sharia Division PT Bank CIMB Niaga Tbk UBS Zurich DBS Bank Hongkong Ltd UBS AG, Singapore ANZ Banking Group Ltd., Others (below Rp 500 million each) Subtotal Total - Cash in banks Allowance for impairment losses Net 537,642 43,689 581,331 266,736 41,505 308,241 December 31, 2009 Rp '000,000 181,894 18,759 200,653

2010 Rp '000,000 211,139 59,484 270,623

2008 Rp '000,000 128,341 14,200 142,541

847

171,742

277

435

636

25,731 9,947 2,536 2,173 2,090 1,334 1,289 1,001 564 281 225 203 164 162 4,145 51,845

20,181 7,723 946 2,204 445 946 2,087 450 2,037 166 123 201 398 32 64 1,751 1,777 4,822 46,353

15,922 7,752 707 1,578 383 583 2,352 439 10,120 184 42 199 169 155 73 1,414 1,041 402 239 1 4,874 48,629

17,687 14,426 835 4,768 420 474 700 257 31 469 122 243 180 158 16 947 164 364 206 2 4,554 47,023

4,073 7,090 2,890 1,609 57 475 1,946 47 992 2,369 536 8,030 960 1,168 1,879 765 675 630 752 4,716 41,659

14,219 13,770 8,228 6,829 5,651 3,953 3,148 2,838 2,154 1,225 865 729 554 26 17 929 65,135 117,827 117,827

43,193 48,685 2,773 4,915 76 2,007 19,697 2,656 120 1,637 313 911 435 127,418 345,513 345,513

33,471 21,662 4,833 4,738 423 2,117 3,866 3,153 1,756 1,817 532 454 1,167 79,989 128,895 128,895

24,511 9,209 2,274 3,016 6,955 20,881 4,297 883 299 77 322 557 6,647 284 80,212 127,670 (886) 126,784

44,430 47,576 15,167 417 804 10,991 2,121 752 864 13 31 1,340 1,084 770 126,360 168,655 (1,112) 167,543

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Demand deposits with Bank Indonesia Rupiah Foreign currency (Note 60) Total - Demand deposits with Bank Indonesia Time deposits Third parties Rupiah PT Bank Negara Indonesia (Persero) Tbk PT Bank Rakyat Indonesia (Persero) Tbk PT Bank Internasional Indonesia Tbk PT Bank Permata Tbk PT Bank CIMB Niaga Tbk PT Bank Pembangunan Daerah Jawa Barat dan Banten PT Bank Panin Indonesia Tbk PT Bank Bukopin Tbk PT Bank Mutiara Tbk PT Bank Tabungan Pensiun Nasional PT Bank ICBC Indonesia PT Bank Danamon Indonesia Tbk PT Bank Artha Graha Internasional Tbk PT BPR Palu Lokadana Utama PT BPR Modem Express PT Bank Central Asia Tbk PT Bank ICB Bumiputera Indonesia Tbk PT Bank Syariah Mandiri PT Bank Internasional Indonesia Tbk Sharia Division PT Bank Bukopin Tbk - Sharia Division PT Bank Rakyat Indonesia (Persero) Tbk Sharia Division PT Bank Mandiri (Persero) Tbk PT Bank CIMB Niaga Tbk - Sharia Division PT Bank Muamalat Indonesia PT Bank Negara Indonesia (Persero) Tbk Sharia Division PT Bank Tabungan Negara - Sharia Division PT Bank OCBC NISP Tbk PT Bank Danamon Indonesia Tbk Sharia Division PT Bank Central Asia Tbk - Sharia Division PT Bank Permata Tbk - Sharia Division PT Bank Windu Kentjana International Tbk PT Bank DKI - Sharia Division PT Bank Nusantara Parahyangan Tbk PT Bank Mayora PT Bank Mega Indonesia - Sharia Division PT Bank Victoria International Tbk Others (below Rp 1,000 million each) Subtotal Foreign currency (Note 60) PT Bank Internasional Indonesia Tbk PT Bank Mandiri (Persero) Tbk Others (below Rp 1,000 million each) Subtotal Total - Time deposits 1,119,918 242,300 1,362,218 307,232 995,516 1,302,748

2010 Rp '000,000 674,610 393,309 1,067,919

December 31, 2009 Rp '000,000 266,465 588,385 854,850

2008 Rp '000,000 225,511 140,005 365,516

1,006,000 1,003,450 784,040 510,500 505,550 501,000 500,000 450,200 320,500 300,000 200,000 51,000 37,595 30,000 20,000 10,864 10,000 8,950 6,700 4,800 4,700 4,204 3,650 2,450 2,450 2,250 2,000 1,800 1,500 1,500 1,300 1,300 1,000 1,000 1,000 500 1,596 6,295,349

6,000 2,000 302,523 10,500 90,350 200 100,500 150,000 33,000 2,272 60,000 3,550 1,700 400 2,400 4,204 1,500 1,550 1,250 1,350 2,000

6,000 2,600 197,174 500 25,250 1,000 50,200 132,441 7,800 10,000 2,792 10,000 11,350 1,700 3,800 2,800 4,204 1,400 1,850 1,600 1,650 2,000 800 2,000 1,500 550 1,000 250 20,300 1,116 505,627

6,000 102,000 286,828 10,500 9,050 400 20,000 33,300 278 7,000 200 1,900 3,954 1,000 1,550 1,450 1,150 1,900 900 1,500 150 25,000 400 695 517,105

8,500 2,775 67,962 400 4,950 50 200 250 4,100 2,650 1,800 150 800 6,902 500 1,850 1,150 200 1,900 900 500 150 1,019 109,658

1,000 1,500 1,000 10,400 1,966 793,115

20,492 5,868 687 27,047 6,322,396

67,159 1,652 564 69,375 862,490

5,210 1,665 570 7,445 513,072

52,560 2,215 56 54,831 571,936

36,530 1,797 887 39,214 148,872

- 62 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Funds placed in securities companies Foreign currency (Note 60) UBS AG, Singapore Credit Suisse First Boston, Singapore Citigroup Consulting Group Account Solomon Smith Barney, Singapore DBS Vickers Securities, Singapore Total - Funds placed in securities companies Total

2010 Rp '000,000

December 31, 2009 Rp '000,000

2008 Rp '000,000

4 2 6 8,383,778

2,818,992

431 4 1

4 4 1,754,227

5 18 2 1 26 824,498

436 1,980,945

According to the regulation of Bank Indonesia, each bank in Indonesia is required to maintain a minimum liquidity reserve of a certain percentage of third party funds both in Rupiah and foreign currencies. As of September 30, 2011 and 2010, and December 31, 2010, 2009 and 2008, the balance of primary minimum liquidity reserves of PT Bank Sinarmas Tbk (BS), a subsidiary, in Rupiah, amounted to Rp 1,115,644 million, Rp 302,761 million, Rp 672,744 million, Rp 264,481 million and Rp 223,991 million, respectively, while the minimum liquidity reserves in foreign currencies amounted to Rp 242,244 million, Rp 31,575 million, Rp 30,694 million, Rp 24,391 million and Rp 8,939 million, respectively. As of September 30, 2011 and 2010, and December 31, 2010 and 2009 secondary minimum liquidity reserves of BS, in Rupiah, amounted to Rp 289,483 million, Rp 151,380, Rp 207,559 million and Rp 132,241 million, respectively. The minimum liquidity reserves as of September 30, 2011 and 2010, and December 31 2010, 2009 and 2008 were determined in accordance with Bank Indonesia Regulation. As of September 30, 2011 and 2010, and December 31, 2010, 2009 and 2008, the balance of cash and cash equivalents in foreign currency amounted to US$ 43,103,891 (equivalent to Rp 379,024), US$ 157,486,261 (equivalent to Rp 1,405,556), US$ 60,041,440 (equivalent to Rp 540,940 million), US$ 79,041,684 (equivalent to Rp 742,626 million), and US$ 29,374,413 (equivalent to Rp 320,441 million), respectively (Note 60). The interest rates per annum on cash in banks and time deposits are as follows:
September 30, (Unaudited) 2011 2010 Time deposits Rupiah Foreign currency December 31, 2009

2010

2008

2.00% - 10.00% 3.52% - 9.62% 0.15% - 1.50% 0.23% - 2.25%

4.48% - 10.00% 6.80% - 11.00% 6.50% - 14.00% 0.15% - 1.50% 0.23% - 2.75% 0.65% - 3.50%

The changes in allowance for impairment losses on cash and cash equivalents are as follows:
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Balance at the beginning of the period Adjustment on PSAK No. 55 (Revised 2006) (Note 2b) Deduction during the year Exchange rate difference Balance at the end of the period 886 (886) December 31, 2009 Rp '000,000 1,112 (102) (124) 886 454 152 1,112

2010 Rp '000,000 886 (886)

2008 Rp '000,000 506

- 63 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 Management believes that the allowance for possible losses on placements with other banks as of December 31, 2009 and 2008 is adequate to cover the possible losses which might arise from uncollectible placements with other banks. As of September 30, 2011 and 2010, and December 31, 2010, no allowance for impairment losses was provided on cash and cash equivalents as management believes that cash and cash equivalents are collectible. All transactions with related parties were done under similar terms and conditions as those done with third parties. 5. Short-term Investments The Company and its subsidiaries short-term investments consist of the following:
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Time deposits Placements with other banks - net Securities - net Total - net 19,136 421,961 14,650,770 15,091,867 17,586 379,864 6,461,595 6,859,045 December 31, 2009 Rp '000,000 10,679 273,277 6,086,273 6,370,229

2010 Rp '000,000 33,543 706,189 7,304,727 8,044,459

2008 Rp '000,000 172,186 84,998 6,721,622 6,978,806

a.

Time deposits
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Third parties Rupiah Banks PT Bank Internasional Indonesia Tbk PT Bank ICB Bumiputera Tbk PT Bank Negara Indonesia (Persero) Tbk - Sharia Division PT Bank Permata Tbk PT Bank UOB Indonesia PT Bank OCBC NISP Tbk PT Bank Artha Graha Internasional Tbk Others (Below Rp 1 billion each) Total PT Kliring Berjangka Indonesia PT Kliring Penjaminan Efek Indonesia Total December 31, 2009 Rp '000,000

2010 Rp '000,000

2008 Rp '000,000

7,668 5,000 1,350 1,150 15,168 3,054 914 19,136 -

7,387 5,000 700

27,492 1,200 1,050 29,742 2,925 876 33,543

7,081 7,081 2,768 830 10,679

76,155 53,300 27,000 11,200 2,150 450 170,255 1,157 774 172,186

750 13,837 2,885 864 17,586

The interest rates per annum on time deposits are as follows:


September 30, (Unaudited) 2011 2010 Time deposits Rupiah December 31, 2009

2010

2008

7.00% - 10.00% 6.75% - 8.25%

5.09% - 8.5%

7.5%

5.28% - 20.23%

This account consists of time deposits with maturities of more than three months and guarantee fund of PT Asuransi Jiwa Sinarmas MSIG (fomerly PT Asuransi Jiwa Sinarmas), a subsidiary in 2008, in compliance with the regulation of the Minister of Finance of the Republic of Indonesia under the name of the Minister of Finance on behalf of the subsidiary and time deposits of PT Sinarmas Sekuritas and PT Sinarmas Futures, subsidiaries, placed with PT Kliring Penjaminan Efek Indonesia and PT Kliring Berjangka Indonesia, respectively.

- 64 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 b. Placements with other banks Placements with other banks as of September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008, represent placements by PT Bank Sinarmas Tbk, a subsidiary, with details as follows:
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Rupiah Call money Time deposits - Sharia Others Total U.S. Dollar (Note 60) Call money Time deposits Deposits on Call Total Total Allowance for impairment losses Total - net December 31, 2009 Rp '000,000

2010 Rp '000,000

2008 Rp '000,000

190,000 190,000

2,000 97 2,097

90,000 90,000

91,535 97 91,632

292 292

229,573 2,488 232,061 422,061 (100) 421,961

331,874 35,700 10,213 377,787 379,884 (20) 379,864

566,039 36,040 14,110 616,189 706,189 706,189

145,153 37,580 1,672 184,405 276,037 (2,760) 273,277

85,565 85,565 85,857 (859) 84,998

The interest rates per annum on placements with other banks are as follows:
September 30, (Unaudited) 2011 2010 Rupiah U.S. Dollar 5.35% 0.00% - 0.19% 7.14% 0.00% - 1.25% December 31, 2009 6.00% - 7.07% 0.05% - 2.05%

2010 6.00% 0.85% - 0.90%

2008 6.00% 0.05%

As of September 30, 2011 and 2010, December 31, 2010, 2009 and 2008, the details of Rupiah call money and time deposits are as follows:
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 70,000 60,000 50,000 10,000 190,000 2,000 2,000 December 31, 2009 Rp '000,000 48,000 30,000 10,535 3,000 91,535

Name of Banks

2010 Rp '000,000 50,000 25,000 15,000 90,000

2008 Rp '000,000 -

PT Bank DBS Indonesia PT Bank Pan Indonesia Tbk Lembaga Ekspor Pembiayaan Indonesia PT Bank CIMB Niaga Tbk PT BNI Syariah PT Bank Rakyat Indonesia Sharia PT Bank Jabar Banten Syariah PT Bank Victoria Syariah PT Bank Internasional Indonesia Tbk - Sharia Division PT Bank Syariah Mega Indonesia Total

- 65 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 As of September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008, details of call money, time deposits and deposits on call in foreign currency are as follows:
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 8,944 176,679 2,488 43,950 232,061 58,769 273,105 35,700 10,213 377,787 December 31, 2009 Rp '000,000 145,153 37,580 1,672 184,405

Name of Banks

2010 Rp '000,000 337,185 138,754 90,100 36,040 14,110 616,189

2008 Rp '000,000 85,565 85,565

Standard Chartered Bank, New York, USA Wachovia Bank, National Association, New York, USA PT Lembaga Pembiayaan Ekspor Indonesia PT Bank Internasional Indonesia Tbk Sharia Division UBS AG, Singapore PT Bank Mutiara Tbk

The changes in allowance for impairment losses on placements with other banks are as follows:
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 100 100 20 2,760 (2,760) 20 December 31, 2009 Rp '000,000 859 2,137 (236) 2,760

Name of Banks

2010 Rp '000,000 2,760 (2,760) -

2008 Rp '000,000 4,422 (3,445) (118) 859

Balance at the beginning of the period Adjustment on PSAK No. 55 (Revised 2006) (Note 2b) Provision (deduction) during the period Exchange rate difference Balance at the end of the period

Management believes that the allowance for possible losses on placements with other banks as of September 30, 2011 and 2010, and December 31, 2009 and 2008 is adequate to cover the possible losses which might arise from uncollectible placements with other banks. As of December 31, 2010, no allowance for impairment losses was provided on placement with other banks as management believes that all placements with other banks are collectible. c. Securities
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 At fair value through profit and loss Related parties (Note 55) Rupiah Shares PT Dian Swastatika Sentosa Tbk PT Indah Kiat Pulp & Paper Tbk PT Pabrik Kertas Tjiwi Kimia Tbk PT Sinar Mas Multiartha Tbk PT Bumi Serpong Damai Tbk Others (below Rp 500 million each) Subtotal Warrants PT Sinar Mas Multiartha Tbk PT Bank Sinarmas Tbk Subtotal 2010 Rp '000,000 December 31, 2009 Rp '000,000 2008 Rp '000,000

2,442 1,440 1,701 2 27 5,612 2,821 2,821 -

1,520 3,720 1,358 1 95 2 6,696 638 638

3,610 2,624 2,551 1 143 3 8,932 1,008 30 1,038

1,344 181 4,037 19,227 1 24,790 638 638

683 2,075 72 2,830 90 90

- 66 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 At fair value through profit and loss Related parties (Note 55) Rupiah Units of mutual fund Fixed income Danamas Stabil Simas Danamas Mantap Plus Simas Danamas Instrumen Negara Money market Danamas Rupiah Plus Riau Liquid Fund Danamas Rupiah Mixed Danamas Fleksi Simas Satu Shares Simas Danamas Saham Others Sinar Prima Reksa Sinar Dana Tumbuh Sinar Dana Super Sinar Century Subtotal - Rupiah Foreign currency Units of mutual fund Fixed income Danamas dollar Other Sinar Dolar Prima Subtotal - Foreign Currency Total - related parties

2010 Rp '000,000

December 31, 2009 Rp '000,000

2008 Rp '000,000

648,299 25,733 392 15,844 3,050 4,390 697,708

34,437 23,341 28,363 372 27,339 23,614 13,744 63,046 47,021 30,465 240,851 532,593

9,078 24,183 28,893 377 27,600 23,847 13,961 65,584 59,429 20,389 251,169 524,510

42,534 24,524 26,827 357 11,685 15,059 51,428 33,463 34,496 195,009 435,382

3,656 37,886 20,881 1,703 11,149 14 7,024 10,198 5,650 529,623 120,783 159,730 7,446 915,743

706,141

539,927

534,480

460,810

251 283,079 283,330 1,201,993

- 67 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 At fair value through profit and loss Third parties Rupiah Shares PT Bank Negara Indonesia (Persero) Tbk PT Indomobil Sukses International Tbk PT Bumi Resources Tbk PT Salim Ivomas Pratama Tbk PT Astra International Tbk PT Perusahaan Gas Negara Tbk PT Bank Danamon Indonesia Tbk PT United Tractors Tbk PT Adaro Energy Tbk PT Bakrie & Brothers Tbk PT Telekomunikasi Indonesia Tbk PT Tambang Batubara Bukit Asam Tbk PT Bakrieland Development Tbk PT Borneo Lumbung Energi & Metal PT Gajah Tunggal Tbk PT Agung Podomoro Land Tbk PT Bank Rakyat Indonesia (Persero) Tbk PT Timah (Persero) Tbk PT Bank Mandiri (Persero) Tbk PT Energi Mega Persada Tbk PT Aneka Tambang (Persero) Tbk PT Delta Dunia Makmur Tbk PT Indocement Tunggal Prakarsa Tbk PT Lippo Karawaci Tbk PT Multistrada Arah Sarana Tbk PT Dayaindo Resources International Tbk PT Jasa Marga (Persero) Tbk PT Berau Coal Energy Tbk PT Indo Tambang Raya Megah Tbk PT International Nickel Indonesia Tbk PT Bakrie Sumatra Plantation Tbk PT Indofood Sukses Makmur Tbk PT Krakatau Steel Tbk PT Tunas Baru Lampung Tbk PT Excelcomindo Pratama Tbk PT Exploitasi Energi Indonesia Tbk PT Wijaya Karya (Persero) Tbk PT Indosat Tbk PT Darma Henwa Tbk PT Bank Bukopin Tbk PT Budi Acid Jaya Tbk PT Astra Agro Lestari Tbk PT Pembangunan Perumahan (Persero) Tb PT Bakrie Telecom Tbk PT Bukit Uluwatu Villa Tbk PT Wintermar Offshore Marine Tbk PT Central Korporindo International Tbk PT Kawasan Industri Jababeka Tbk PT Holcim Indonesia Tbk LQ45 PT Medco Energi International Tbk PT Bank capital Indonesia Tbk Others (below Rp 500 million each) Subtotal

2010 Rp '000,000

December 31, 2009 Rp '000,000

2008 Rp '000,000

424,790 257,335 237,257 113,285 56,199 52,992 45,694 40,887 33,912 23,091 21,375 17,548 12,768 12,404 12,375 10,240 8,775 7,523 7,453 7,452 7,351 7,204 7,000 6,460 6,371 6,107 5,470 5,386 5,279 4,938 3,541 2,525 2,054 1,924 1,418 1,275 1,225 1,165 1,074 1,042 899 724 248 758 1,484,793

694 251,793 25 12,368 10,412 19,454 24,840 6,900 77,220 13,860 1,250 13,388 180 5,866 7,068 23,926 6,624 46,724 50,704 6,426 27,836 1,316 3,350 1,658 1,067 1,529 5,600 1,094 1,026 851 333 629 626,011

374,699 340,827 569 38,498 595 10,529 23,417 22,061 9,180 8,635 14,950 788 11,687 1,138 6,381 3,431 19,643 5,329 22,795 52,899 3,980 6,947 4,846 244 3,120 1,384 1,040 1,700 1,198 1,017 1,462 600 20,040 3,250 1,920 954 1,226 1,022,979

1,372 795,653 254 585 4,548 32,641 1,890 7,530 10,646 1,408 6,500 1,532 965 3,081 41,532 3,515 43,893 7,296 2,755 373 1,148 1,788 10,028 1,391 1,462 5,707 1,462 990,955

3,379 4,727 13,456 1,468 9,132 344 8,670 2,081 5,010 387 65 5,579 7,707 2,401 3,920 933 13,990 2,790 641 179 8,768 11 864 1,891 18,091 3,680 727 2,260 123,151

- 68 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 At fair value through profit and loss Third parties Rupiah Warrants PT Budi Acid Jaya Tbk PT Bakrie Sumatra Plantations Tbk PT Darma Henwa Tbk Others Subtotal Bonds PT Bank Pan Indonesia Tbk Government Bond FR0043 Government Bond FR0027 Mitra Adiperkasa Ijarah Sukuk Ijarah I Sumarecon Sukuk I ijarah PLN III Th 2009 Series A Indofood Sukses Makmur IV Tahun 2007 Others (below Rp 5 billion each) Subtotal Units of mutual fund Fixed income Si Dana Batavia Optimal Star High Yield Fund Si Dana Obligasi Ultima Star Cemerlang Tetap Star Fixed Income Si Dana Batavia Terbatas II Si Dana Obligasi Prima Others (below Rp 500 million each) Mixed Star Balanced Nusadana Kombinasi Maxima Dhanawibawa Progresif Others (below Rp 500 million each) Protected Si Dana Batavia VI NISP Proteksi Dinamis Shares Pratama Saham Si Danasaham Dana Pratama Ekuitas Danareksa Mawar BNI Dana Berkembang Syailendra Equity Opportunity Fund Others Kharisma Flexi Terbatas 3 HPAM Maestro Flexi I Syailendra Multi Strategy Fund II Corfina Bima Berimbang PT HPAM Maestro Flexi II RD Gani Penyertaan Terbatas Penyertaan Terbatas 1 Investa Flexi IV Penyertaan Terbatas Syailendra Multi Strategy Fund I Pasific Dana Tumbuh Pasific Stable Fund Millenium Nilai Optima Star Dana Stabil Arjuna Rupiah Stabil Star Capital Protected Fund Subtotal Total - Rupiah

2010 Rp '000,000

December 31, 2009 Rp '000,000

2008 Rp '000,000

95 72 167 29,652 18,234 7,771 5,248 3,202 544 64,651 -

99 61 1 161 11,740 7,637 3,300 22,677

93 67 160 30,120 11,440 7,717 4,305 53,582

90 28 3 121 9,804 7,127 5,054 2,114 24,099 -

34 28 1 63 6,143 8,950 4,540 10,649 30,282

273,696 48,665 2,118 11,500 1,444 119 614,006 8,406 4,233 2,702 1,174 1,859,551 1,175,672 1,094,679 756,158 387,545 266,597 168,733 181,161 6,858,159 8,407,770

225,398 44,578 12,500 12,183 1,529 125 277,401 4,616 3,117 1,180 12,051 6,730 688,466 238,010 393,321 165,438 59,079 2,145,722 2,794,571

361,224 45,002 12,141 13,038 1,604 127 221,289 4,649 3,336 1,236 12,881 6,934 326,566 80,051 236,834 312,734 144,708 162,242 74,964 2,021,560 3,098,281

229,098 170,040 19,571 15,342 10,106 1,218 99 56,530 1,170 3,493 2,498 906 8,284 798,011 88,898 796,766 272,951 2,474,981 3,490,156

123,433 205,338 9,298 162,714 28,837 138 6,231 923 10,688 54 1,057 1,635 1,052 466 94 4,292 200,883 947,558 945,153 421,820 394,589 34,227 3,500,480 3,653,976

- 69 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 At fair value through profit and loss Foreign currency (Note 60) Shares Google Inc. Citigroup Inc JP Morgan Chase & Co. Bank of America Starbucks Corp Cisco System Inc General Electric Company 3M Company Apache Corporation Subtotal Bonds Istana High Grade 2 Enercoal Resources Pte. Ltd Matahari Finance BV Majapahit Holding BV (PLN) 2017 Republic of Indonesia 2019 (ROI 2019) Majapahit Holding BV (PLN) 2016 PT Bank International Indonesia Tbk Majapahit Holding BV (PLN) 2037 Arpeni Pratama Ocean Line I Callable Subtotal Units of Mutual fund Others Corfina Bima Berimbang Dollar HPAM Maestro Dollar I HPAM Maestro Flexi Dollar II Adenium Lestari Dolar Fund Arjuna Dollar Stabil Star Dollar Tetap Arjuna Dollar Mantap Subtotal Total - foreign currency Total - third parties Total - at fair value through profit and loss Available for sale Related parties (Note 55) Rupiah Shares PT Pabrik Kertas Tjiwi Kimia Tbk Subtotal

2010 Rp '000,000

December 31, 2009 Rp '000,000

2008 Rp '000,000

8,634 7,967 7,959 7,662 4,277 4,274 4,196 3,800 3,434 52,203 18,464 18,464

18,675 21,632 40,307

18,815 18,815

19,671 61,462 47,823 40,044 19,740 9,466 9,212 7,367 214,785

22,915 22,915

479,941 169,462 67,346 5,322 722,071 792,738 9,200,508 9,906,649

516,001 76,535 592,536 632,843 3,427,414 3,967,341

457,960 64,737 54,551 4,706 581,954 600,769 3,699,050 4,233,530

521,776 54,184 575,960 790,745 4,280,901 4,741,711

34,518 459,703 206,409 11,106 711,736 734,651 4,388,627 5,590,620

1 1

1 1

- 70 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Available for sale Third parties Rupiah Shares PT Bumi Resources Tbk PT Bank Mandiri (Persero) Tbk PT Bank Negara Indonesia (Persero) Tbk PT Perusahaan Gas Negara (Persero)Tbk PT Salim Ivomas Pratama Tbk PT Bank Danamon Indonesia Tbk PT Indocement Tunggal Prakarsa Tbk PT Intraco Penta Tbk PT Bank Rakyat Indonesia (Persero) Tbk PT Tambang Batubara Bukit Asam Tbk PT Semen Gresik Tbk PT Adaro Energi Tbk PT Holcim Indonesia Tbk PT Indo Tambang Raya Megah Tbk PT Borneo Lumbung Energi & Metal PT Indofood Sukses Makmur Tbk PT Bakrie Sumatra Plantation Tbk PT Bakrieland Development Tbk PT United Tractor Tbk PT Krakatau Steel Tbk PT Jasa Marga (Persero) Tbk PT PP London Sumatra Indonesia Tbk PT Astra Internasional Tbk PT Telekomunikasi Indonesia Tbk PT Agung Podomoro Land Tbk PT Bank Tabungan Negara (Persero) Tbk PT Indosat Tbk PT Timah Tbk PT Bank Central Asia PT Gudang Garam Tbk Others (below Rp 500 million each) Subtotal - Shares Bonds Government Bond IFR006 Government bond IFR005 Subtotal - Bonds Foreign currency (Note 60) Shares Others (below Rp 500 million each) Bond Republic of Indonesia 2020 (ROI 2020) Subtotal - Bonds Total - Third parties Total - available for sale Held to maturity Third parties Rupiah Bank Indonesia Intervention Unamortized interest Net Certificate of Bank Indonesia Unamortized interest Net

2010 Rp '000,000

December 31, 2009 Rp '000,000

2008 Rp '000,000

174,041 134,392 77,752 77,499 58,338 54,464 50,225 48,582 45,925 23,822 22,663 18,514 18,468 18,192 17,828 16,731 12,705 10,370 9,493 8,152 7,751 3,083 908,990 12,352 12,352

867,583 6,271 20,569 14,750 16,053 10,226 4,365 273 3,073 230 1,456 944,849 10,790 10,790

924,080 5,011 199,448 10,846 8,663 12,157 4,205 2,111 7,597 7,126 4,146 3,478 1,799 5 1,190,672 11,426 5,380 16,806

8,526 390 178 473 9,660 17 19,244 -

25,324 3,529 3,492 47 1 598 26,531 27,022 2,492 1,760 629 56 91,481 -

18,986 18,986 940,328 940,328

5,115 5,115 960,754 960,754

19,687 19,687 1,227,165 1,227,165

19,244 19,245 -

628

0 92,109 92,110

1,996,000 (21,921) 1,974,079 26,488 (189) 26,299

124,400 (26) 124,374 -

171,300 (27) 171,273 -

2,000 (1) 1,999

24,500 (25) 24,475 -

- 71 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Held to maturity Third parties Rupiah Bonds Government Bond FR0028 Government Bond ORI 4 Government Bond FR0026 Government Bond FR0031 Government Bond FR0038 Government Bond FR0040 Government Bond FR0043 Government Bond FR0027 Government Bond FR0046 Government Bond FR0033 Government Bond FR0034 Government Bond FR0036 Government Bond FR0020 Government Bond FR0042 Excelcom II Government Bond FR0023 Government Bond FR0017 Indomobil III C Government Bond FR0047 Government Bond FR0045 Government Bond ZC0003 Government Bond IFR001 Government Bond FR0030 Government Bond FR0018 Government Bond FR0048 Government Bond ZC0005 Government Bond FR0044 Government Bond ORI 3 Others (below Rp 5.000 billion each) Unamortized premium Net Total - Rupiah Foreign currency (Note 60) Bonds Republic of Indonesia 37 (ROI 2037) Majapahit Holdings BV (PLN) 2017 Republic of Indonesia 2014-2 (ROI 2014-2) Republic of Indonesia 2015 (ROI 2015) Republic of Indonesia 2014 (ROI 2014) - SU Majapahit Holdings BV (PLN) 2016 Merlion Capital Funding PSA International Pte Ltd Republic of Indonesia 2019 (ROI 2019) Arpeni Pratama Ocean Line I Callable Republic of Indonesia 17 (ROI 17) Majapahit Holdings BV (PLN) 2037 Helium Capital Funding UBS - 5YR Fixed Rate Note Mei Euro Finance Ltd Puttable PT Bank Internasional Indonesia Tbk PT Bank CIMB Niaga Tbk Longstreet CDO ABS 2006 1XP Branta Mulia I/2004 Others (below Rp 5.000 billion each) Unamortized discount Net Credit Linked Note

2010 Rp '000,000

December 31, 2009 Rp '000,000

2008 Rp '000,000

78,860 75,010 71,691 69,309 62,169 56,459 55,555 53,436 52,104 49,860 40,888 38,501 32,466 27,566 25,152 20,321 20,193 20,000 17,534 17,273 16,817 15,432 12,909 10,255 8,579 7,942 7,063 2,000 965,344 2,965,722

78,719 75,030 72,154 68,756 61,988 55,006 54,180 52,940 49,698 49,002 40,749 37,824 33,438 27,512 23,821 20,567 20,835 20,000 16,854 17,255 14,521 14,767 12,651 10,560 8,251 6,910 6,809 10,007 2,000 962,804 1,087,178

78,746 75,021 72,043 69,272 62,322 56,400 55,390 53,035 51,858 49,838 40,832 38,436 33,213 27,522 24,138 20,509 20,685 20,000 17,492 17,258 15,000 14,180 12,810 10,489 8,487 7,250 7,012 10,004 2,000 971,242 1,142,515

80,000 75,000 70,000 69,070 59,657 55,013 55,788 53,489 48,982 47,193 38,976 36,864 30,000 30,000 26,000 20,000 20,000 20,000 16,716 20,000 12,648 13,390 12,497 10,000 8,087 6,142 6,654 10,000 2,000 2,606 956,772 958,771

80,000 75,000 70,000 30,000 50,000 10,000 38,257 53,029 7,708 46,319 20,000 36,540 30,000 30,000 20,000 20,000 20,000 10,112 13,104 12,299 10,000 7,868 5,108 6,426 10,000 5,435 12,840 730,045 754,520

49,115 44,760 44,610 32,764 26,557 18,531 14,636 13,534 12,139 9,847 9,061 8,655 6,874 1,755 292,838 43,950

49,822 51,313 45,523 32,706 27,030 20,704 13,539 13,453 13,743 9,337 9,242 10,977 6,859 17,714 38,354 1,781 362,097 62,475

50,306 45,678 45,908 33,133 27,289 18,993 14,879 13,799 12,643 8,876 9,319 8,817 6,992 17,987 1,798 316,417 63,070

56,370 46,975 37,580 28,185 15,490 9,395 7,292 18,753 32,944 28,185 28,185 4,433 (12,788) 300,999 65,765

60,636 18,205 16,368 11,382 8,991 21,736 39,762 25,426 10,000 (4,289) 208,217 76,300

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Export bill receivables Total - foreign currency Total - held to maturity Allowance for impairment losses Total 501,303 838,091 3,803,813 (20) 14,650,770 21,789 446,361 1,533,539 (39) 6,461,595

2010 Rp '000,000 322,030 701,517 1,844,032 7,304,727

December 31, 2009 Rp '000,000 889 367,653 1,326,424 (1,107) 6,086,273

2008 Rp '000,000 284,517 1,039,037 (145) 6,721,622

The details of securities by investor as of September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 are as follows:
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 PT Asuransi Jiwa Sinarmas MSIG (fomerly PT Asuransi Jiwa Sinarmas) PT Bank Sinarmas Tbk PT Asuransi Sinar Mas Parent Company PT Sinarmas Sekuritas Other Subsidiaries Total December 31, 2009 Rp '000,000

2010 Rp '000,000

2008 Rp '000,000

8,181,982 3,438,233 1,896,986 612,086 471,007 50,476 14,650,770

3,176,261 1,085,019 1,463,223 12,897 710,188 14,007 6,461,595

3,266,671 1,472,091 1,693,777 3,128 853,293 15,767 7,304,727

3,522,507 941,637 1,148,361 21,337 439,931 12,500 6,086,273

4,877,893 782,910 891,138 694 157,903 11,084 6,721,622

The details of held-to-maturity securities as of September 30, 2011 based on its maturity are as follows:
1 month or less Rp '000,000 Bank Indonesia Intervention Bonds Credit linked note Export bill receivables Certificate of Bank Indonesia Total 860,101 475,278 26,299 1,361,678 More than 1-3 months Rp '000,000 381,161 26,025 407,186 More than 3-12 months Rp '000,000 732,817 150,610 883,427 More than 1-2 years Rp '000,000 156,891 43,950 200,841 More than 2-5 years Rp '000,000 293,620 293,620 More than 5 years Rp '000,000 657,061 657,061 Total Rp '000,000 1,974,079 1,258,182 43,950 501,303 26,299 3,803,813

The details of held-to-maturity securities as of September 30, 2010 based on its maturity are as follows:
1 month or less Rp '000,000 Bank Indonesia Intervention Bonds Credit linked note Export bill receivables Total 124.374 21.789 146.163 More than 1-3 months Rp '000,000 More than 3-12 months Rp '000,000 27.721 17.850 45.571 More than 1-2 years Rp '000,000 150.246 150.246 More than 2-5 years Rp '000,000 432.374 44.625 476.999 More than 5 years Rp '000,000 714.560 714.560 Total Rp '000,000 124.374 1.324.901 62.475 21.789 1.533.539

The details of held-to-maturity securities as of December 31, 2010 based on its maturity are as follows:
1 month or less Rp '000,000 Bank Indonesia Intervention Bonds Credit linked note Export bill receivables Total 171,273 84,337 255,610 More than 1-3 months Rp '000,000 237,693 237,693 More than 3-12 months Rp '000,000 27,992 18,020 46,012 More than 1-2 years Rp '000,000 244,950 45,050 290,000 More than 2-5 years Rp '000,000 341,313 341,313 More than 5 years Rp '000,000 673,404 673,404 Total Rp '000,000 171,273 1,287,659 63,070 322,030 1,844,032

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 The details of held-to-maturity securities as of December 31, 2009 based on its maturity are as follows:
1 month or less Rp '000,000 Bank Indonesia Intervention Bonds Credit linked note Export bill receivables Total 1,999 889 2,888 More than 1-3 months Rp '000,000 More than 3-12 months Rp '000,000 32,944 32,944 More than 1-2 years Rp '000,000 28,766 18,970 47,736 More than 2-5 years Rp '000,000 474,277 46,795 521,072 More than 5 years Rp '000,000 721,784 721,784 Total Rp '000,000 1,999 1,257,771 65,765 889 1,326,424

The details of held-to-maturity securities as of December 31, 2008 based on its maturity are as follows:
1 month or less Rp '000,000 Bank Indonesia Intervention Bonds Credit linked note Total 24,475 24,475 More than 1-3 months Rp '000,000 More than 3-12 months Rp '000,000 10,512 10,512 More than 1-2 years Rp '000,000 39,762 39,762 More than 2-5 years Rp '000,000 235,705 76,300 312,005 More than 5 years Rp '000,000 652,283 652,283 Total Rp '000,000 24,475 938,262 76,300 1,039,037

On January 1, 2010, PT Asuransi Jiwa Sinarmas MSIG (fomerly PT Asuransi Jiwa Sinarmas), a subsidiary, changed its investment intention in Government Bonds and Corporate Bonds with nominal value and fair value of US$ 10,500,000 (equivalent to Rp 98,700 million) and US$ 10,401,250 (equivalent to Rp 97,772 million), respectively, by transferring from Trading into Held-to-maturity categories. The difference between nominal value and fair value is amortized using the effective interest rate method until maturity. In 2008, PT Bank Sinarmas Tbk, a subsidiary, change its investment intention in Government Bonds and Republic of indonesia ROI Loans with nominal value of Rp 661,300 million by transferring from Available-for-sale into Held-to-maturity categories which based on Bank Indonesia Circular Letter No. 10/177/DpG/DPNP date October 9, 2008, banks are allowed to transfer Surat Utang Negara (SUN) and other long-term domestic debt securities from Trading and Available-for-sale categories to Held-tomaturity categories until PSAK N0. 55 (Revised 2006) Financial Instruments: Recognition and Measurement, become effective. Management of BS believes that BS has the ability to hold the Government Bonds and ROI Loans until maturity. The fair value of the Government Bonds and ROI Loans upon transfer amounted to Rp 658,397 million. The unrealized loss on decrease in fair value of securities amounting to Rp 51,238 million, which will be amortized until its maturity date, was presented as part of Other Equity Components Share in Unrealized Gain on Changes in Fair Value of Available for Sale Securities of Subsidiaries (Note 39). The balance of unrealized losses on available for sale securities (including the securities which were reclassified from held to maturity category) as of September 30, 2011 and 2010, and December 31, 2010, 2009 and 2008 which become a part of the Parent Company which is presented as a part of Other Equity Components Share in Unrealized Gain on Changes in Fair Value of Available for Sale Securities of Subsidiaries (Note 39). As of September 30, 2011 and 2010, and December 31, 2010, 2009 and 2008, the balance of bonds are included in the guarantee fund of PT Asuransi Jiwa Sinarmas MSIG (formerly PT Asuransi Jiwa Sinarmas) and PT Asuransi Sinar Mas, subsidiaries, in compliance with the regulation of Minister of Finance of Republic Indonesia No. 424/KMK.06/2003 with the last changes through regulation of Minister of Finance No. 158/PNK.010/2008 dated October 28, 2008 and regulation of government of Republic of Indonesia No. 39 year 2008 article 7.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 The changes in allowance for impairment losses on securities are as follows:
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Balance at the beginning of the period Adjustment on PSAK No. 55 (Revised 2006) (Note 2b) Provision (reversal) during the period Exchange rate diference Balance at the end of the period 20 20 1,107 (1,107) 39 39 December 31, 2009 Rp '000,000 145

2010 Rp '000,000 1,107 (1,107) -

2008 Rp '000,000 1,179 (1,034) 145

1,059 (97) 1,107

Management believes that the allowance for impairment losses on securities as of September 30, 2011 and 2010 and December 31, 2009 and 2008 is adequate to cover the losses which might arise from these securities. As of December 31, 2010, no impairment losses on securities was provided as management believes that the carrying amounts of all securities are realizable. Bonds The bonds rating from PT Pemeringkat Efek Indonesia (PT Pefindo) as reported by Indonesia Stock Exchange and the maturity date of the bonds with nominal value of over Rp 5 billion each, as of September 30, 2011, are as follows:
Rating Government Bond FR0017 Government Bond ORI 4 Excelcom II Indomobil III C Government Bond FR0018 Government Bond FR0046 Government Bond ZC0003 Government Bond FR0023 Government Bond ZC0005 Government Bond FR0033 Arpeni Pratama Ocean Line I Callable Government Bond FR0020 Republic of Indonesia 2014 (ROI 2014) - SUKUK Republic of Indonesia 2014-2 (ROI 2014-2) Government Bond FR0026 Istana High Grade 2 Republic of Indonesia 2015 (ROI 2015) Government Bond FR0027 Government Bond IFR001 Government Bond FR0030 Majapahit Holdings BV (PLN) 2016 Government Bond IFR005 Republic of Indonesia 2017 (ROI 2017) Majapahit Holdings BV (PLN) 2017 Government Bond FR0028 PT Bank Pan Indonesia Tbk Government Bond FR0038 IdAA+ IdA AAAA AAAAIdAAMaturity Date January 15, 2012 March 12, 2012 April 26, 2012 April 30, 2012 July 15, 2012 July 15, 2023 November 20, 2012 December 15, 2012 February 20, 2013 March 15, 2013 May 3, 2013 December 15, 2013 April 23, 2014 May 4, 2014 October 15, 2014 December 5, 2014 April 20, 2015 June 15, 2015 August 15, 2015 May 15, 2016 October 17, 2016 January 15, 2017 March 9, 2017 June 28, 2017 July 15, 2017 November 09, 2017 August 15, 2018

- 75 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
Rating Government Bond FR0048 Republic of Indonesia 2019 (ROI 2019) Government Bond FR0036 Government Bond FR0031 PSA International Pte Ltd Government Bond FR0034 Helium Capital Funding Government Bond FR0043 Merlion Capital Funding Government Bond FR0044 Government Bond FR0040 Government Bond FR0042 Government Bond FR0047 Government Bond IFR006 Republic of Indonesia 37 (ROI 2037) Government Bond FR0045 Majapahit Holdings BV (PLN) 2037 Mitra Adiperkasa Ijarah Seri A Mitra Adiperkasa Ijarah Seri B Republic of Indonesia 2020 (ROI 2020) AA+ AAA AAA AAIdA+ IdA+ Maturity Date September 15, 2018 March 4, 2019 September 15, 2019 November 15, 2020 February 11, 2021 June 15, 2021 February 22, 2022 July 15, 2022 September 9, 2022 September 15, 2024 September 15, 2025 July 15, 2027 February 15, 2028 March 15, 2030 February 17, 2037 May 15, 2037 June 29, 2037 December 16, 2012 December 16, 2014 March 13, 2012

The bonds rating from PT Pemeringkat Efek Indonesia (PT Pefindo) as reported by Indonesia Stock Exchange and the maturity date of the bonds with nominal value of over Rp 5 billion each, as of September 30, 2010, are as follows:
Rating Government Bond (ORI) 3 UBS - 5YR Fixed Rate Note Government Bond FR0017 Government Bond ORI 4 Excelcom II Indomobil III C Government Bond FR0018 Government Bond FR0046 Government Bond ZC0003 Government Bond FR0023 Government Bond ZC0005 Government Bond FR0033 Arpeni Pratama Ocean Line I Callable Government Bond FR0020 Republic of Indonesia 2014 (ROI 2014) - SUKUK Republic of Indonesia 2014-2 (ROI 2014-2) Government Bond FR0026 Istana High Grade 2 Republic of Indonesia 2015 (ROI 2015) Government Bond FR0027 Government Bond IFR001 Government Bond FR0030 Majapahit Holdings BV (PLN) 2016 Government Bond IFR005 Republic of Indonesia 2017 (ROI 2017) Majapahit Holdings BV (PLN) 2017 Government Bond FR0028 A IdAAIdAAAAA AAAAMaturity Date September 12, 2011 September 20, 2011 January 15, 2012 March 12, 2012 April 26, 2012 April 30, 2012 July 15, 2012 July 15, 2023 November 20, 2012 December 15, 2012 February 20, 2013 March 15, 2013 May 3, 2013 December 15, 2013 April 23, 2014 May 4, 2014 October 15, 2014 December 5, 2014 April 20, 2015 June 15, 2015 August 15, 2015 May 15, 2016 October 17, 2016 January 15, 2017 March 9, 2017 June 28, 2017 July 15, 2017

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
Rating PT Bank Pan Indonesia Tbk Government Bond FR0038 Government Bond FR0048 Republic of Indonesia 2019 (ROI 2019) Government Bond FR0036 Government Bond FR0031 PSA International Pte Ltd Government Bond FR0034 Helium Capital Funding Government Bond FR0043 Merlion Capital Funding Government Bond FR0044 Government Bond FR0040 Government Bond FR0042 Government Bond FR0047 Government Bond IFR006 Republic of Indonesia 37 (ROI 2037) Government Bond FR0045 Majapahit Holdings BV (PLN) 2037 PT Bank CIMB Niaga Tbk IdAAAA+ AAA AAA AABa1 Maturity Date November 09, 2017 August 15, 2018 September 15, 2018 March 4, 2019 September 15, 2019 November 15, 2020 February 11, 2021 June 15, 2021 February 22, 2022 July 15, 2022 September 9, 2022 September 15, 2024 September 15, 2025 July 15, 2027 February 15, 2028 March 15, 2030 February 17, 2037 May 15, 2037 June 29, 2037 November 16, 2012

The bonds rating from PT Pemeringkat Efek Indonesia (PT Pefindo) as reported by Indonesia Stock Exchange and the maturity date of the bonds with nominal value of over Rp 5 billion each, as of December 31, 2010, are as follows:
Rating Government Bond (ORI) 3 UBS - 5YR Fixed Rate Note Government Bond FR0017 Government Bond ORI 4 Excelcom II Indomobil III C Government Bond FR0018 Government Bond FR0046 Government Bond ZC0003 Government Bond FR0023 Government Bond ZC0005 Government Bond FR0033 Arpeni Pratama Ocean Line I Callable Government Bond FR0020 Republic of Indonesia 2014 (ROI 2014) - SUKUK Republic of Indonesia 2014-2 (ROI 2014-2) Government Bond FR0026 Istana High Grade 2 Republic of Indonesia 2015 (ROI 2015) Government Bond FR0027 Government Bond IFR001 Government Bond FR0030 Majapahit Holdings BV (PLN) 2016 A IdAAIdAAAAA AAMaturity Date September 12, 2011 September 20, 2011 January 15, 2012 March 12, 2012 April 26, 2012 April 30, 2012 July 15, 2012 July 15, 2023 November 20, 2012 December 15, 2012 February 20, 2013 March 15, 2013 May 3, 2013 December 15, 2013 April 23, 2014 May 4, 2014 October 15, 2014 December 5, 2014 April 20, 2015 June 15, 2015 August 15, 2015 May 15, 2016 October 17, 2016

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
Rating Government Bond IFR005 Republic of Indonesia 2017 (ROI 2017) Majapahit Holdings BV (PLN) 2017 Government Bond FR0028 PT Bank Pan Indonesia Tbk Government Bond FR0038 Government Bond FR0048 Republic of Indonesia 2019 (ROI 2019) Government Bond FR0036 Government Bond FR0031 PSA International Pte Ltd Government Bond FR0034 Helium Capital Funding Government Bond FR0043 Merlion Capital Funding Government Bond FR0044 Government Bond FR0040 Government Bond FR0042 Government Bond FR0047 Government Bond IFR006 Republic of Indonesia 37 (ROI 2037) Government Bond FR0045 Majapahit Holdings BV (PLN) 2037 AAIdAAAA+ AAA AAA AAMaturity Date January 15, 2017 March 9, 2017 June 28, 2017 July 15, 2017 November 09, 2017 August 15, 2018 September 15, 2018 March 4, 2019 September 15, 2019 November 15, 2020 February 11, 2021 June 15, 2021 February 22, 2022 July 15, 2022 September 9, 2022 September 15, 2024 September 15, 2025 July 15, 2027 February 15, 2028 March 15, 2030 February 17, 2037 May 15, 2037 June 29, 2037

The bonds rating from PT Pemeringkat Efek Indonesia (PT Pefindo) as reported by Indonesia Stock Exchange and the maturity date of the bonds with nominal value of over Rp 5 billion each, as of December 31, 2009, are as follows:
Rating Mei Euro Finance Ltd Putable Government Bonds ORI 3 UBS - 5YR Fixed Rate Note Government Bonds FR0017 Government Bonds ORI 4 Excelcom II Year 2007 Indomobil Finance Indonesia III Tahun 2009 Series C Government Bonds FR0018 Government Bonds FR0046 Government Bonds ZC0003 Government Bonds FR0023 Government Bonds ZC0005 Government Bonds FR0033 Arpeni Pratama Ocean Line I Callable Government Bonds FR0020 Republic of Indonesia 14 (ROI 14) - Sukuk Republic of Indonesia 2014 (ROI 2014) Government Bonds FR0026 Istana High Grade 2 AAA A+ AAAAA Maturity Date May 22, 2010 September 12, 2011 September 20, 2011 January 15, 2012 March 12, 2012 April 26, 2012 April 30, 2012 July 15, 2012 July 15, 2023 November 20, 2012 December 15, 2012 February 20, 2013 March 15, 2013 May 3, 2013 December 15, 2013 April 23, 2014 May 4, 2014 October 15, 2014 December 5, 2014

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
Rating Republic of Indonesia 15 (ROI 15) PT Bank Internasional Indonesia Tbk Government Bonds FR0027 Government Bonds IFR001 Government Bonds FR0030 Matahari Finance BV Majapahit Holding BV (PLN) 2016 PT Bank CIMB Niaga Tbk Republic of Indonesia 17 (ROI 17) Majapahit Holding BV (PLN) 2017 Government Bonds FR0028 Government Bonds FR0038 Government Bonds FR0048 Government Bonds FR0036 Republic of Indonesia 2019 Government Bonds FR0031 Government Bonds FR0034 Helium Capital Funding Government Bonds FR0043 Merlion Capital Funding Government Bonds FR0044 Government Bonds FR0040 Government Bonds FR0042 Government Bonds FR0047 Republic of Indonesia 37 (ROI 37) Government Bonds FR0045 Majapahit Holding BV (PLN) 2037 Ba1 A+ AABa1 AAAAA AAA AAMaturity Date April 20, 2015 April 28, 2015 June 15, 2015 August 15, 2015 May 15, 2016 October 6, 2016 October 16, 2016 November 22, 2016 March 9, 2017 June 28, 2017 July 15, 2017 August 15, 2018 September 15, 2018 September 15, 2019 March 4, 2019 November 15, 2020 June 15, 2021 February 22, 2022 July 15, 2022 September 9, 2022 September 15, 2024 September 15, 2025 July 15, 2027 February 15, 2028 February 17, 2037 May 15, 2037 June 28, 2037

The bonds rating from PT Pemeringkat Efek Indonesia (PT Pefindo) as reported by Indonesia Stock Exchange and the maturity date of the bonds with nominal value of over Rp 5 billion each, as of December 31, 2008, are as follows:
Rating Branta Mulia Series I Republic of Indonesia Bonds 3 (ORI 3) UBS - 5YR Fixed Rate Note Government Bonds FR0017 Republic of Indonesia Bonds 4 (ORI 4) Government Bonds FR0018 Government Bonds Year 2007 FR0046 Government Bonds Year 2007 ZC0003 Government Bonds FR0023 Government Bonds ZC0005 Government Bonds Year 2006 FR0033 Government Bonds FR0033 Arpeni Pratama Ocean Line I Callable Longstreet CDO ABS 2006 1XP Government Bonds FR0020 Government Bonds FR0026 Is tana High Grade 2 Government Bonds Year 2005 FR0027 AA AAAA AAA Maturity Date April 19, 2009 September 12, 2011 September 20, 2011 January 15, 2012 March 12, 2012 J uly 15, 2012 J uly 15, 2023 November 20, 2012 December 15, 2012 February 20, 2013 March 15, 2013 March 15, 2013 May 3, 2013 August 6, 2013 December 15, 2013 October 15, 2014 December 5, 2014 J une 15, 2015

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
Rating SUN FR0027 Government Bonds FR0027 Government Bonds IFR001 Government Bonds Year 2005 FR0030 Republic of Indonesia 17 (ROI 17) Government Bonds FR0028 Government Bonds FR0038 Government Bonds Year 2007 FR0048 Government Bonds Year 2006 FR0036 Government Bonds FR0036 Government Bonds FR0031 Government Bonds FR0034 Helium Capital Funding SUN FR0043 Government Bonds FR0043 Merlion Capital Funding Government Bonds Year 2007 FR0044 Government Bonds FR0040 Government Bonds FR0042 Republic of Indonesia 37 (ROI 37) Government Bonds FR0045 AAA AAA Maturity Date J une 15, 2015 J une 15, 2015 August 15, 2015 May 15, 2016 Marc h 9, 2017 J uly 15, 2017 August 15, 2018 September 15, 2018 September 15, 2019 September 15, 2019 November 15, 2020 J une 15, 2021 February 22, 2022 J uly 15, 2022 J uly 15, 2022 September 9, 2022 September 15, 2024 September 15, 2025 J uly 15, 2027 February 17, 2037 May 15, 2037

As of September 30, 2011 and 2010, the average interest rates on bonds denominated in Rupiah range from 9.00% to 17.14% and from 9.00% to 17.00%, respectively (December 31, 2010, 2009, and 2008: 9.00% to 17.00% per annum, 9.40% to 19.89% per annum and 9.50% to 15.00% per annum, respectively). As of September 30, 2011 and 2010, the average interest rates on bonds denominated in U.S. Dollar range from 3.73% to 11.63% and from 3.38% to 11.63, respectively (December 31, 2010, 2009, and 2008: 3.38% to 11.63% per annum 2.24% to 12.17% per annum, and 2.24% to 7.72% per annum, respectively). Units of Mutual Fund Equity securities in units of mutual fund of a related party which are held for trading were arranged by PT Sinarmas Sekuritas, a subsidiary, as the investment manager (Note 55). The Parent Company and its subsidiaries invested in various types of units of mutual fund such as fixed income mutual funds, money market mutual funds, mixed mutual funds and shares mutual funds. In 2011, return of investment per year ranged from 7.7% to 9.31 (for fixed income and money market mutual funds), from (1.22%) to 59.4% (for mixed mutual funds), from (6.91%) to 4.41% (for shares of mutual funds), 4.2% to 13.8% (for protected mutual funds). In 2010, return of investment per year ranged from 4.54% to 8.47% (for fixed income and money market mutual funds), from 9.85% to 15.49% (for mixed mutual funds), from 17.79% to 29.27% (for shares of mutual funds), 4.54% to 5.55% (for protected mutual funds). In 2009, return of investment per year ranged from 3.96% to 10.44% (for fixed income and money market mutual funds), from 8.04% to 59.75% (for mixed mutual funds), from 19.08% to 110.06% (for shares of mutual funds), 8.21% to 8.28% (for protected mutual funds).

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 In 2008, return of investment per year ranged from (0.38%) to 0.89% (for fixed income and money market mutual funds), from (0.47%) to 0.73% (for mixed mutual funds), from (3.82%) to (2.63%) (for shares of mutual funds), 0.24% (for protected mutual funds). Transactions with related parties were done under similar terms and conditions as those done with third parties.

6.

Securities Purchased Under Agreements to Resell As of September 30, 2011 and 2010, and December 31, 2010 and, 2009 investment in securities purchased under agreements to resell were done by PT Bank Sinarmas Tbk and PT Sinarmas Sekuritas, subsidiaries (September 30, 2010: PT Sinarmas Sekuritas), consisting of:
September 30, 2011 (Unaudited) Carrying Term Due date value Rp'000,000

Type Rupiah AAA Securities Bonds Bank Lampung II Year 2007 Subdebt BCA Finance Government Bond FR 45 PT Tiga Pilar Sekuritas Shares PT Tiga Pilar Sejahtera Food Tbk Total

32 days 30 days 30 days

October 17, 2011 October 19, 2011 October 28, 2011

3,797 19,471 17,055 40,323

91 days

October 24, 2011

37,608 77,931

Type Rupiah PT Tiga Pilar Sekuritas Shares PT Tiga Pilar Sejahtera Food Tbk Total

September 30, 2010 (Unaudited) Carrying Term Due date value Rp'000,000

90 days

October 26, 2010

30,562 30,562

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
December 31, 2010 Type Rupiah AAA Securities Bonds FR 040 Bank Lampung II Year 2007 Bank Lampung II Year 2007 PT Tiga Pilar Sekuritas Shares PT Tiga Pilar Sejahtera Food Tbk Total Term Due date Carrying value Rp'000,000

40 days 31 days 32 days

January 10, 2011 January 20, 2011 January 17, 2011

45,773 19,444 9,721 74,938

90 days

January 24, 2011

32,203 107,141

Decem ber 31, 2009 Type Term Due date Carrying value Rp '000,000

Rupiah - PT Tiga Pilar Sekuritas Shares PT Tiga Pilar Sejahtera Food Tbk Foreign currency - AAA Securities (Note 60) Bond ROI 2014 Total

31 days

January 29, 2010

26,574

30 days

January 22, 2010

10,017 36,591

As December 31, 2008, there are no securities purchased under agreements to resell. No allowance for impairment losses was provided on securities purchased under agreement to resell as management believes that all such securities purchased under agreement to resell are collectible.

7.

Consumer Financing Receivables a. This account consists of:


September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Related parties (Note 55) Third parties Consumer financing - gross Amount financed by other parties Net December 31, 2009 Rp '000,000 337

2010 Rp '000,000 -

2008 Rp '000,000 318

835,499 835,499

492,409 492,409

531,842 531,842

504,404 (14,739) 489,665

556,362 (74,802) 481,560

- 82 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Total consumer financing receivables Unearned consumer finance income - net Total Allowance for impairment losses Net Interest rates per annum Rupiah 835,499 (253,264) 582,235 (1,526) 580,709 492,409 (137,084) 355,325 (550) 354,775

2010 Rp '000,000 531,842 (154,343) 377,499 (538) 376,961

December 31, 2009 Rp '000,000 490,002 (95,642) 394,360 (493) 393,867

2008 Rp '000,000 481,878 (97,160) 384,718 (374) 384,344

15.00% - 21.00% 15.00% - 21.00% 15.0% - 64.0%

12.0% - 28.0%

15.0% - 21.0%

During 2011, 2010, 2009 and 2008, consumer financing receivables which are part of amount financed by other parties were done on a without recourse basis. b. PT Sinar Mas Multifinance (SMF) and PT AB Sinar Mas Multifinance (ABSM), subsidiaries, grant consumer financing for vehicles with terms ranging from one (1) to five (5) years. Management believes that there are no significant concentrations of credit risk in consumer financing rceivable from third parties. The consumer financing receivables are secured with the related certificates of ownership (BPKB) of the vehicles financed by SMF and ABSM. d. As of September 30, 2011 and 2010, and December 31, 2010, 2009 and 2008, there are consumer financing receivables which are pledged as collateral in relation to loans received (Note 33). The details of consolidated consumer financing receivables based on its remaining period until maturity are as follows:
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Less than or equal to 1 year Related parties Third parties More than 1 year until 2 years Related parties Third parties More than 2 years Related parties Third parties Total December 31, 2009 Rp '000,000

c.

e.

2010 Rp '000,000

2008 Rp '000,000

501,431 246,028 88,040 835,499

309,955 139,447 43,007 492,409

323,271 154,957 53,614 531,842

59 282,206 43 152,177 235 55,282 490,002

91 270,383 45 153,448 182 57,729 481,878

f.

Cooperation Transactions 1. On March 26, 2003, SMF entered into a Cooperation Agreement on Joint Consumer Financing Facility with PT Bank Mutiara Tbk (Bank Mutiara) to finance the purchases of four-wheeled private vehicles. In relation to this joint financing facility, Bank Mutiara required SMF to charge the customers a certain rate. SMF has the right to adjust the minimum interest rate charged to the customers.

- 83 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 The availability of the facility and the maximum portion financed by Bank Mutiara has been amended several times, the latest was on December 17, 2007, wherein the maximum portion financed by Bank Mutiara was increased to Rp 150,000 million, whereas the portion financed by SMF and Bank Mutiara were changed to 5% and 95%, respectively, and the availability of the facility was extended up to June 17, 2008. SMFs duties and responsibilities in accordance with the aforementioned agreements include administration and collection of receivables. In November 2008, consumer financing receivables financed by Bank Mutiara were fully transfered to PT Bank Sinarmas Tbk, a subsidiary. 2. On August 20, 2004, SMF entered into a Joint Financing Agreement of Mega Oto Joint Financing (MOJF) and Agreement on Transfer of Consumer Financing Portfolio and Appointment as Facility Agent as well as Security Agent (MOPP) with PT Bank Mega Tbk (Bank Mega) to finance the purchases of four-wheeled private vehicles. The maximum portion financed by Bank Mega for MOJF and MOPP facilities amounted to Rp 25,000 million and Rp 100,000 million, respectively. SMF and Bank Megas maximum shares were 10% and 90%, respectively, and the agreement is valid for a period of 12 months and can be extended upon agreement of both parties. The latest extension on the period of drawdown of MOPP facility was up to February 15, 2008 and was not extended anymore. In relation to this joint financing facility, Bank Mega required SMF to charge fixed interest rate to the customers. SMFs duties and responsibilities in accordance with this agreement include administration and collection of receivables. During 2008, SMF engaged in transfer of consumer financing receivables transactions on a without recourse basis to a third party, with PT Sinarmas Sekuritas, a subsidiary, as the investment manager. The collections of receivables transferred is being done by SMF. On November 13, 2007, SMF entered into Channeling Credit Transfer Agreement with PT Bank Sinarmas Tbk (BS), a subsidiary, with maximum facility amounting to Rp 100,000 million. The agreement is valid for a period of 12 months. Based on the agreement, SMF acts as cooperation agent, collateral agent and custodian. On December 13, 2009 maximum facility increased to Rp 1,500,000 million and the term of the agreement was extended until January 13, 2010. 5. On November 29, 2006, SMF entered into a Joint Financing Agreement with PT Bank ICB Bumiputera Tbk (formerly PT Bank Bumiputera Indonesia Tbk) (Bank ICB Bumiputera) to finance the purchases of new and used four-wheeled vehicles. SMF and Bank ICB Bumiputera maximum shares are 10% and 90%, respectively, whereas the maximum portion financed by Bank ICB Bumiputera amounted to Rp 15,000 million or other amount agreed by both parties on liquidation basis or non-revolving. The joint consumer joint financing agreement is valid for a period of 12 months. In relation to this joint financing facility, Bank ICB Bumiputera required SMF to charge fixed interest rate to customers. SMFs duties and responsibilities in accordance with this agreement include administration and collection of receivables. On June 28, 2007, the maximum portion financed by Bank ICB Bumiputera was increased to Rp 45,000 million and the availability of the facility was extended up to June 28, 2008. Afterwards, this was not extended anymore.

3.

4.

- 84 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 6. In April and June 2010, SMF entered into Commitment Limit Financing Facility in the form of Murabaha and Ijarah Muntahiyah Bittamlik with BS Sharia Division with maximum facility amounting to Rp 270,000 million. The agreement is valid for a period of 12 months. BS provides for 100% financing. Based on the agreement, SMF acts as cooperation agent, collateral agent and custodian. On December 16, 2010, SMF entered into Channeling Credit Transfer Agreement with BS, with maximum facility amounting to Rp 750,000 milllion. The agreement is valid for a period of 12 months. Based on the agreement, SMF acts as the cooperation agent, collateral agent and custodian.

7.

All financing transactions are done on a without recourse basis. As of September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008, the transfer of consumer financing receivables in relation to joint financing transactions and the transferred consumer financing receivables on a without recourse basis amounted to Rp 2,125,678 million and Rp 1,305,338 million, Rp 1,598,239 million, Rp 514,782 million and Rp 493,014 million, respectively. g. The changes in allowance for impairment losses are as follows:
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Balance at the beginning of the period Provisions during the period Write-off during the period Balance at the end of the period 538 13,189 (12,201) 1,526 493 2,621 (2,564) 550 December 31, 2009 Rp '000,000 374 1,160 (1,041) 493

2010 Rp '000,000 493 5,669 (5,624) 538

2008 Rp '000,000 236 5,743 (5,605) 374

Management believes that the allowance for impairment losses is adequate to cover the possible losses which might arise from uncollectible consumer financing receivables. All transactions with related parties were done under similar terms and conditions as those done with third parties.

8.

Net Investments in Finance Lease a. This account consists of:


September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Related parties (Note 55) Rupiah U.S. Dollar (Note 60) Total Third parties - Rupiah Total Guaranteed residual value Unearned lease income Security deposits Total Allowance for impairment losses Net December 31, 2009 Rp '000,000

2010 Rp '000,000

2008 Rp '000,000

139,596 139,596 44,063 183,659 26,297 (40,566) (26,297) 143,093 (2,597) 140,496

191,260 191,260 43,302 234,562 26,565 (56,268) (26,565) 178,294 (5,919) 172,375

172,799 172,799 50,981 223,780 25,487 (56,197) (25,487) 167,583 (3,714) 163,869

110,266 188 110,454 47,664 158,118 24,773 (44,612) (24,773) 113,506 (5,639) 107,867

55,871 2,002 57,873 37,741 95,614 10,079 (28,508) (10,079) 67,106 (2,819) 64,287

- 85 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008

September 30, (Unaudited) 2011 2010 Interest rates per annum Rupiah U.S. Dollar

2010

December 31, 2009

2008

15.0% - 25.0% -

13.0% - 22.0% -

13.0% - 22.0% -

13.0% - 22.0% 9.0%

12.5% - 25.0% 9.0%

b.

PT Sinar Mas Multifinance (SMF) and PT AB Sinar Mas Multifinance (ABSM), subsidiaries, grant lease financing for heavy equipment, industrial machinery and transportation equipment. The details of consolidated finance lease receivables based on its remaining period until maturity are as follows:
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Less than or equal to 1 year More than 1 year but less than 2 years More than 2 years Total 89,867 66,119 27,673 183,659 92,802 77,971 63,789 234,562 December 31, 2009 Rp '000,000 64,240 45,063 48,815 158,118

c.

2010 Rp '000,000 102,299 73,223 48,258 223,780

2008 Rp '000,000 43,533 26,495 25,586 95,614

As of September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 there are finance lease receivables which are pledged as collateral to PT Bank Victoria International Tbk in relation to loans received (Note 33). d. The changes in allowance for impairment losses are as follows:
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Balance at the beginning of the period Adjustment on PSAK No. 55 (Revised 2006) (Note 2b) Provisions (recovery) during the period Write-off during the period Balance at the end of the period 3,714 (78) (1,039) 2,597 5,639 (2,479) 7,373 (4,614) 5,919 December 31, 2009 Rp '000,000 2,819 3,576 (756) 5,639 1,519 2,819

2010 Rp '000,000 5,639 (2,479) 5,727 (5,173) 3,714

2008 Rp '000,000 1,300

Management believes that the allowance for impairment losses is adequate to cover the losses which might arise from uncollectible finance lease receivables. e. During 2011, 2010, 2009 and 2008 SMF and ABSM engaged in transfer of finance lease receivables transactions on a without recourse basis to a third party, with PT Sinarmas Sekuritas, a subsidiary, as the investment manager. The collection of receivables transferred is being done by SMF and ABSM. Transactions with related parties were done under terms and conditions similar to those done with third parties.

f.

- 86 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 9. Factoring Receivables a. This account consists of:
September 30, (Unaudited) 2011 2010 Rp '000,000 Related parties (Note 55) Rupiah U.S. Dollar (Note 60) Total Third parties Rupiah U.S. Dollar (Note 60) Total Total Deferred factoring income Allowance for impairment losses Net December 31, 2009 Rp '000,000

2010 Rp '000,000

2008 Rp '000,000

64,998 51,398 116,396 239,224 88 239,312 355,708 (6,298) (5,159) 344,251

26,001 29,064 55,065 86,485 86,485 141,550 (5,553) (6,701) 129,296

19,701 45,957 65,658 133,175 133,175 198,833 (6,095) (5,180) 187,558

14,094 7,050 21,144 56,134 56,134 77,278 (814) (5,967) 70,497

16,699 5,475 22,174 52,584 52,584 74,758 (2,157) 72,601

September 30, (Unaudited) 2011 2010 Interest rates per annum Rupiah U.S. Dollar

2010

December 31, 2009

2008

11.5% - 25.0% 8.0% - 9.5%

15.0% - 21.0% 9.0% - 12.0%

15.0% - 21.0% 8.0% - 12.0%

15.0% - 21.0% 9.0%

11.8% - 25.0% 8.0% - 9.5%

b.

As of September 30, 2011 and December 31, 2010, these are factoring receivables which are pledged as collateral in relation to loans received (Note 33). The changes in allowance for impairment losses are as follows:
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Balance at beginning of the period Adjustment on PSAK No. 55 (Revised 2006) (Note 2b) Provisions during the period Write-off during the period Balance at the end of the period 5,180 74 (95) 5,159 6,701 5,967 317 417 December 31, 2009 Rp '000,000 2,157 3,882 (72) 5,967 2,716 (1,127) 2,157

c.

2010 Rp '000,000 5,967 317 1,926 (3,030) 5,180

2008 Rp '000,000 568

Management believes that the allowance for impairment losses is adequate to cover the losses which might arise from uncollectible factoring receivables. d. During 2011, 2010, 2009 and 2008, PT Sinar Mas Multifinance (SMF) and PT AB Sinar Mas Multifinance (ABSM), subsidiaries, engaged in transfer of factoring receivables transactions on a without recourse basis to a third party, with PT Sinarmas Sekuritas (SMS), a subsidiary, as the investment manager. The collection of receivables transferred is being done by SMF and ABSM. Transactions with related parties were done under terms and conditions similar to those done with third parties.

e.

- 87 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 10. Segregated Funds Net Assets - Unit Link
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Investments Time deposits Third parties Rupiah PT Bank PT Bank PT Bank PT Bank PT Bank PT Bank Others Subtotal December 31, 2009 Rp '000,000

2010 Rp '000,000

2008 Rp '000,000

International Indonesia Tbk Bukopin Tbk Victoria International Tbk Mutiara Tbk Permata Tbk ICB Bumiputera Tbk

102 102 102

90,000 150,000 240,000 240,000

350,000 310,200 300,000 10,000 5,000 600 975,800 8,335 984,135

Foreign currency (Note 60) PT Bank International Indonesia Tbk Total - Third parties Bonds - Held to maturity Related party (Note 55) Rupiah Bumi Serpong Damai II/2006 Third parties Rupiah Government Bond RI FR23 Government Bond RI FR27 5Year PPN USD BPPI Others (below Rp 1,000 million each) Subtotal Foreign currency (Note 60) USD Merrill Lynch USD Fortis Subtotal Total - third parties Total - bonds Bond - At fair value through profit and loss Third parties Foreign currency (Note 60) Renhe Commercial Shares - At fair value through profit and loss Third parties Rupiah PT United Tractors Tbk PT Bank Mandiri (Persero) Tbk PT Astra Internasional Tbk PT Bank Central Asia Tbk PT Bank Pan Indonesia Tbk PT Telekomunikasi Indonesia Tbk PT Bank Rakyat Indonesia (Persero) Tbk PT Perusahaan Gas Negara (Persero) Tbk PT Tambang Batubara Bukit Asam Tbk PT Holcim Indonesia Tbk PT International Nickel Indonesia Tbk Others (below 1 billion each) Total - shares Units of mutual fund - At fair value through profit and loss Related parties (Note 55) Rupiah Danamas Stabil Sinar Dana Super Sinar Prima Reksa Simas Satu Danamas Rupiah Plus Total - Rupiah

3,000

3,000

3,000

3,000

3,000

5,906 4,509 10,415 18,160 15,599 33,759 44,174 47,174

5,870 4,421 30,401 40,692 40,692 43,692

5,879 4,443 10,322 16,850 14,299 31,149 41,471 44,471

5,843 4,355 23,779 33,977 33,977 36,977

5,807 4,268 758 10,833 9,155 9,044 18,199 29,032 32,032

66,997

8,261 6,684 3,883 2,680 2,522 1,987 1,960 1,464 1,352 1,023 815 1,018 33,649

6,851 6,876 3,459 2,332 4,424 2,406 1,675 2,108 1,566 1,393 1,314 1,165 35,569

7,973 6,207 3,327 2,227 4,424 2,079 1,759 2,423 1,847 1,293 1,314 1,199 36,072

5,192 4,489 2,117 1,688 2,949 2,471 1,281 2,135 1,389 890 984 958 26,543

1,474 1,934 644 1,131 1,876 1,804 766 1,018 555 362 520 580 12,664

32,386 32,386

30,070 30,070

29,810 29,810

29,614 587,537 223,654 840,805

68,913 197,712 34 2 266,661

- 88 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Investments Units of mutual fund - At fair value through profit and loss Related parties (Note 55) Foreign currency (Note 60) Danamas Dollar Sinar Dollar Prima Total - Foreign currency Total Third parties Rupiah RD Gani Pendapatan Tetap PT Henan Putihrai Asset Management Maestro Flexi Si Dana Batavia Terbatas VI Syailendra Multi Strategy Fund I Schroder Dana Terpadu II RD Kharisma Flexi Terbatas III Schroder Dana Prestasi Plus Fortis Ekuitas Schroder Syariah Balanced Fund Corfina Bima Berimbang Penyertaan Terbatas Schroder Dana Mantap Plus II Milenium Nilai Optima Star Cemerlang Tetap Star Danastabil Schroder Dana Istimewa TRIM Kapital Others (below 1 billion each) Subtotal Foreign currency (Note 60) Corfina Bima Berimbang Dollar Penyertaan Terbatas PT Henan Putihrai Asset Management Maestro Dollar I HPAM USD Subtotal Total - third parties Total - units of mutual fund Total - investments Cash in banks Third parties Rupiah PT Bank CIMB Niaga Tbk PT Bank Internasional Indonesia Tbk PT Bank Mega Tbk Total - Rupiah Foreign currency (Note 60) PT Bank Internasional Indonesia Tbk PT Bank CIMB Niaga Tbk PT Bank Mega Tbk Total - foreign currency Total - cash in banks Investment receivables Other receivables Total

2010 Rp '000,000

December 31, 2009 Rp '000,000

2008 Rp '000,000

138 138 32,524

23,601 23,601 53,671

23,510 23,510 53,320

21,754 208,494 230,248 1,071,053

7,971 28,490 36,461 303,122

1,428,397 1,228,582 791,374 447,357 366,589 105,000 73,382 71,176 42,642 34,901 5,782 874 4,596,056

1,414,200 2,106,726 735,484 316,814 79,707 75,944 42,635 4,582 943 4,777,035

1,380,509 2,390,544 870,257 111,875 332,339 80,037 78,433 43,534 32,089 4,525 970 5,325,112

97,827 8,013 229,987 68,049 48,624 35,805 3,905 742,820 409,608 352,487 9,296 1,024 2,007,445

20,881 68,771 25,722 19,626 6,293 1,562 142,855

403,305 87,073 31,535 521,913 5,117,969 5,150,493 5,231,418

399,788 27,656 427,444 5,204,479 5,258,150 5,644,408

386,308 164,703 551,011 5,876,123 5,929,443 6,994,121

2,007,445 3,078,498 3,142,018

142,855 445,977 490,673

33,484 1,582 6 35,072 803 295 20 1,118 36,190 2,407 150 5,270,165

22,277 823 23,100 1,387 567 1,954 25,054 2,523 5,671,985

30,945 441 6 31,392 4,402 112 21 4,535 35,927 2,271 7,032,319

6,918 435 7,353 2,374 155 2,529 9,882 2,185 3,154,085

17,316 7 17,323 2,405 92 2,497 19,820 2,183 512,676

Transaction with related parties were done under similar terms and conditions as those done with third parties.

- 89 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 11. Segregated Funds Net Assets - Sharia
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Investments Third parties Time deposits Rupiah PT Bank CIMB Niaga Tbk - Sharia Division PT Bank Central Asia Tbk PT Bank Muamalat Indonesia - Sharia Division PT Bank Permata Tbk - Sharia Division Total Share Rupiah PT United Tractor Tbk PT Astra International Tbk PT Tambang Batubara Bukit Asam Tbk PT Bumi Serpong Damai Tbk PT Semen Gresik (Persero) Tbk PT Indo Tambangnya Megah Tbk Total Bonds - Held to maturity Rupiah Surat Berharga Syariah Negara IFR001 2008 Sukuk Ijarah I Summarecon 2008 Sukuk Ijarah Indosat III 2008 Sukuk Ijarah Matahari Putra Prima IIA 2009 Syariah Ijarah Perusahaan Listrik Negara I 2006 Sukuk Ijarah Matahari Putra Prima IIB 2009 Units of mutual fund - At fair value through profit and loss Rupiah PNM Amanah Syariah Fortis Pesona Amanah I-Hajj Syariah Fund Schroder Syariah Balance Fund PNM Amanah Syariah Fixed Income PNM Syariah PNM Ekuitas Syariah PNM Syariah Fund Mixed Fixed Income PNM Ekuitas Syariah Fund Equity BNI Dana Syariah Total Total - Investments Cash in banks Rupiah PT Bank Internasional Indonesia Tbk - Sharia Division PT Bank CIMB Niaga Tbk - Sharia Division PT Bank Muamalat Indonesia Tbk PT Bank Syariah Mandiri PT Bank Tabungan Negara Tbk - Sharia Division PT Bank Rakyat Indonesia Tbk - Sharia Division PT Bank Permata Tbk - Sharia Division PT Bank Syariah Mega Indonesia PT Bank OCBC NISP - Sharia Division Total - Rupiah Premiums receivable Reinsurance receivable Investment receivable Fixed assets - net Total December 31, 2009 Rp '000,000

2010 Rp '000,000

2008 Rp '000,000

3,100 2,000 1,500 6,600

1,000 2,000 2,000

2,250 4,750 7,000

500 500

2,332 2,100 1,277 959 623 491 7,782

7,570 5,124 4,760 2,036 1,070 1,042 21,602

7,384 5,170 4,651 1,042 1,036 2,160 21,443

7,506 5,173 4,661 2,081 1,073 1,097 21,591

7,281 2,100 2,541 1,043 12,965

7,154 2,402 9,556

26,039 10,735 4,904 41,678 77,662

4,994 6,896 1,237 12,048 2,242 763 28,180 49,623

8,837 7,390 17,100 7,086 40,413 64,004

1,122 2,102 2,689 4,468 2,989 13,370 33,335

1,021 1,927 570 1,801 1,007 957 977 8,260 18,316

11,563 3,681 744 123 14 1,018 17,143 1,897 15 396 358 97,471

8,448 4,551 356 191 2 106 1 13,655 822 15 298 25 64,438 -

690 3,256 435 209 2 3 3 1 4,599 1,195 15 504 21 70,338

659 1,598 415 75 30 1 1 2,779 191 2 372 34 36,713 -

377 1,247 387 33 1 145 1 2,191 842 22 436 27 21,834

- 90 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 12. Premiums and Reinsurance Receivables a. This account consists of:
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Related parties (Note 55) Premiums receivable Reinsurance receivables Subtotal Third parties Premiums receivable Reinsurance receivables Subtotal Total Allowance for impairment losses Net December 31, 2009 Rp '000,000

2010 Rp '000,000

2008 Rp '000,000

109,317 764 110,081

54,398 4,067 58,465

43,187 905 44,092

149,395 1,865 151,260

109,114 873 109,987

285,479 15,897 301,376 411,457 (3,695) 407,762

231,777 16,212 247,989 306,454 306,454

305,909 8,092 314,001 358,093 (4,926) 353,167

206,254 77,315 283,569 434,829 434,829

227,101 109,645 336,746 446,733 446,733

b.

Transactions with related parties were done under similar terms and conditions as those done with third parties. The details of consolidated premiums and reinsurance receivables classified based on currency are as follows:
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Rupiah Premiums receivable Reinsurance receivables Subtotal U.S. Dollar (Note 60) Premiums receivable Reinsurance receivables Subtotal Total Allowance for impairment losses Total December 31, 2009 Rp '000,000

c.

2010 Rp '000,000

2008 Rp '000,000

268,723 5,205 273,928

245,812 6,270 252,082

315,393 5,503 320,896

267,625 19,234 286,859

265,735 22,876 288,611

126,073 11,456 137,529 411,457 (3,695) 407,762

40,363 14,009 54,372 306,454 306,454

33,703 3,494 37,197 358,093 (4,926) 353,167

88,024 59,946 147,970 434,829 434,829

70,480 87,642 158,122 446,733 446,733

d.

The details of consolidated reinsurance receivables classified based on domicile of the reinsurer are as follows:
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Local Foreign Total 14,742 1,919 16,661 14,852 5,427 20,279 December 31, 2009 Rp '000,000 9,408 69,772 79,180

2010 Rp '000,000 5,075 3,922 8,997

2008 Rp '000,000 4,253 106,265 110,518

- 91 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 e. The details of consolidated premiums receivable based on its remaining period until maturity are as follws:
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Due within 1 - 60 days Related parties Third parties Due within over 60 days Related parties Third parties Total 2010 Rp '000,000 December 31, 2009 Rp '000,000 2008 Rp '000,000

97,045 264,930 12,271 20,550 394,796

49,942 194,294 4,457 37,482 286,175

38,715 279,061 4,472 26,848 349,096

149,385 189,345 10 16,909 355,649

106,264 203,228 2,850 23,873 336,215

f.

The changes in allowance for impairment losses are as follows:


September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Balance at the beginning of the period Provisions (recovery) during the period Balance at the end of the period 4,926 (1,231) 3,695 2010 Rp '000,000 4,926 4,926 December 31, 2009 Rp '000,000 2008 Rp '000,000 -

Management believes that the allowance for impairment losses as of September 30, 2011 and December 31, 2010 is adequate to cover the losses which might arise from uncollectible premiums receivable and reinsurance receivables, while as of September 30, 2011 and December 31, 2009 and 2008 management did not provide allowance for doubtful accounts on premiums receivable and reinsurance receivables because they believe that all such receivables are collectible. 13. Loans This account represents loans given by PT Bank Sinarmas Tbk, a subsidiary. a. By Type of Loans
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Related Parties (Note 55) Rupiah Fixed Loans Overdraft Consumer Loans Loans to employees Installment Loans Sharia receivables - murabahah Subtotal - Rupiah U.S. Dollar (Note 60) Fixed Loans Total - Related parties Third Parties Rupiah Consumer Loans Installment Loans Fixed Loans Factoring Loans Sharia receivables - Murabahah Overdraft Investment Loans Loans to employees Sharia receivables - Qardh Subtotal 2010 Rp '000,000 December 31, 2009 Rp '000,000 2008 Rp '000,000

227,164 4,795 3,601 333 263 12 236,168 1,199,835 1,436,003

306,500 647 437 1,798 46 309,428 548,888 858,316

231,557 6,939 580 1,682 67 240,825 554,115 794,940

163,500 332 154 116 164,102 577,793 741,895

80,831 1,398 640 539 83,408 83,408

2,987,073 1,694,955 1,376,829 605,667 470,654 168,066 56,882 11,045 23 7,371,194

2,042,082 1,218,263 1,040,114 495,667 88,055 128,419 58,350 7,606 5,078,556

2,323,631 1,445,532 1,251,931 592,291 146,895 146,137 59,297 8,165 5,973,879

2,046,713 608,357 985,262 463,237 3,940 122,284 235,665 5,812 4,471,270

1,803,203 484,658 1,216,868 220,701 92,765 62,752 3,396 3,884,343

- 92 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Third Parties U.S. Dollar (Note 56) Installment Loans Fixed Loans Overdraft Subtotal Subtotal Total Allowance for impairment losses Net

2010 Rp '000,000

December 31, 2009 Rp '000,000

2008 Rp '000,000

254,741 101,777 356,518 7,727,712 9,163,715 (97,227) 9,066,488

172,508 95,123 267,631 5,346,187 6,204,503 (141,867) 6,062,636

166,573 76,403 242,976 6,216,855 7,011,795 (77,638) 6,934,157

59,213 141,486 200,699 4,671,969 5,413,864 (90,889) 5,322,975

46,530 237,201 1 283,732 4,168,075 4,251,483 (52,703) 4,198,780

b.

By Economic Sectors
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Manufacturing Trading, restaurant and hotel Services Construction Coal and mining Transportation, warehousing and communication Social and public services Electic, gas, and water Agriculture, hunting and agriculture facilities Others Total Allowance for impairment losses Net 1,448,267 1,342,846 1,286,937 457,261 441,600 323,164 272,394 83,722 48,555 3,458,969 9,163,715 (97,227) 9,066,488 781,139 944,516 1,104,272 343,006 249,342 290,051 230,957 20,000 47,683 2,193,537 6,204,503 (141,867) 6,062,636 December 31, 2009 Rp '000,000 826,364 416,563 876,497 262,377 91,057 237,407 35,033 39,644 2,628,922 5,413,864 (90,889) 5,322,975

2010 Rp '000,000 761,000 533,250 1,300,704 408,011 272,073 323,088 206,423 22,523 58,552 3,126,171 7,011,795 (77,638) 6,934,157

2008 Rp '000,000 303,684 418,152 946,863 361,310 113,784 80,723 38,548 40,495 1,947,924 4,251,483 (52,703) 4,198,780

c.

By Maturity The classifications of loans based on its credit period, as stated in the loan agreements, and based on its remaining period until maturity are as follows: Based on credit periods:
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Rupiah 1 year or less More than 1 year until 2 years More than 2 years until 5 years More than 5 years Subtotal U.S. Dollar (Note 60) 1 year or less More than 1 year until 2 years More than 2 year until 5 years More than 5 years Subtotal Total Allowance for impairment losses Net 2010 Rp '000,000 December 31, 2009 Rp '000,000 2008 Rp '000,000

1,869,385 1,274,337 3,074,817 1,388,823 7,607,362

1,145,830 879,900 2,633,670 728,584 5,387,984

1,440,837 1,342,919 2,257,599 1,173,349 6,214,704

1,156,108 593,686 2,044,654 840,924 4,635,372

967,174 659,795 1,585,036 755,746 3,967,751

1,253,914 27,389 176,979 98,071 1,556,353 9,163,715 (97,227) 9,066,488

36,355 575,035 93,567 111,562 816,519 6,204,503 (141,867) 6,062,636

607,588 24,931 57,909 106,663 797,091 7,011,795 (77,638) 6,934,157

677,594 7,693 93,205 778,492 5,413,864 (90,889) 5,322,975

208,931 26,745 48,056 283,732 4,251,483 (52,703) 4,198,780

- 93 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 Based on remaining period until maturity:
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Rupiah 1 year or less More than 1 year until 2 years More than 2 years until 5 years More than 5 years Subtotal Foreign currency (Note 60) 1 year or less More than 1 year until 2 years More than 2 years until 5 years More than 5 years Subtotal Total Allowance for impairment losses Net December 31, 2009 Rp '000,000

2010 Rp '000,000

2008 Rp '000,000

2,824,527 1,343,419 2,791,923 647,493 7,607,362

2,293,267 660,517 1,816,204 617,996 5,387,984

2,590,571 767,708 2,160,473 695,952 6,214,704

1,820,150 582,591 1,476,659 755,972 4,635,372

1,494,104 394,734 1,346,005 732,908 3,967,751

1,304,449 35,662 118,171 98,071 1,556,353 9,163,715 (97,227) 9,066,488

600,878 48,817 55,261 111,563 816,519 6,204,503 (141,867) 6,062,636

586,405 47,696 53,992 108,998 797,091 7,011,795 (77,638) 6,934,157

719,278 8,978 50,236 778,492 5,413,864 (90,889) 5,322,975

242,188 0 41,544 283,732 4,251,483 (52,703) 4,198,780

d.

Average interest rates per annum on loans are as follows:


September 30, (Unaudited) 2011 2010 Rupiah U.S. Dollar December 31, 2009

2010

2008

6.00% - 33.66% 6.00% - 22.64% 5.95% - 26.97% 6.00% - 21.00% 9.00% - 21.00% 2.70% - 9.0% 4.25% - 9.5% 4.25% - 9.5% 4.65% - 10.00% 8.00% - 9.00%

e.

The changes in allowance for impairment losses on loans are as follows:


September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Balance at the beginning of the period Adjustment on PSAK No. 55 (Revised 2006) (Note 2b) Provisions during the period Accrual of interest on impaired loans Write-off during the period Recovery Exchange rate differences Balance at the end of the period 77,638 19,115 (216) 6,260 (5,570) 97,227 90,889 4,316 49,809 (1,474) (1,673) 141,867 December 31, 2009 Rp '000,000 52,703 73,360 (15,981) (19,193) 90,889

2010 Rp '000,000 90,889 4,316 53,241 (5,150) (63,015) (2,643) 77,638

2008 Rp '000,000 33,968 17,301 1,434 52,703

Management believes that the allowance for impairment losses on loans is adequate to cover the possible losses which might arise from uncollectible loans. f. As of September 30, 2011 and 2010 and December 31, 2010 and 2009, there are no syndicated loans, while as of December 31, 2008, syndicated loans amounted to Rp 6,512 million. BS, as a member of the syndicated lenders, has 4.09% participation in such syndicated loan as of December 31, 2008. As of September 30, 2011 and 2010, and December 31, 2010, 2009 and 2008, the outstanding balance of BS channeling amounted to Rp 3,002,739 million, Rp 2,030,023 million, Rp 2,332,310 million, Rp 1,905,849 million and Rp 1,570,207 million, respectively, of which Rp 1,923,554 million, Rp 1,022,022 million, Rp 1,200,157 million, Rp 480,261 million and Rp 366,154 million, respectively, were transferred through related parties (Note 55).

g.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 h. Loans granted to related parties, except for granted loans to employees, were granted under normal terms and conditions similar to those granted to third parties. Loans granted to employees represent loans for purchases of cars, houses and other necessities with interest rates of 0% for loans with term below 1 year and 6% for loans with terms ranging between 1 to 10 years. During the nine month periods ended September 30, 2011 and 2010, and during the years ended December 31, 2010, 2009 and 2008, BS has restructured loans amounting to Rp nil Rp nil, Rp nil, Rp 18,022 million and Rp 25,723 million with allowance for possible losses of Rp nil, Rp nil, Rp nil, Rp 5,768 million and Rp 147 million, respectively. As of September 30, 2011 and 2010, and December 31, 2010, 2009 and 2008, the total nonperforming loans amounted to Rp 87,069 million, Rp 131,782 million, Rp 88,348 million, Rp 117,546 million and Rp 85,254 million, respectively. All of the non-performing loans are in the process of recovery by BS. As of September 30, 2011 and 2010, and December 31, 2010, 2009 and 2008, there is no loan to related and third parties which has exceeded BSs Legal Lending Limit (LLL). Management believes that the value of the collaterals on loans is adequate to cover the possible losses which might arise from uncollectible loans.

i.

j.

k.

l.

14. Ijarah Assets As of September 30, 2011 and 2010 and December 31, 2010, this account represents the object of the Ijarah lease transactions with an option to transfer the Muntahiyah Bittamlik object property leased by grant.
Changes during the period (9 months) January 1, 2011 Rp '000.000 Cost Vehicles Heavy equipment Machineries Software Multiservice asset Total Accumulated depreciation Vehicles Heavy equipment Machineries Software Multiservice asset Total Net Book value Transfer to the lessee at the end of contract Rp '000.000 September 30, 2011 (Unaudited) Rp '000.000

Additions Rp '000.000

246,336 23,600 1,785 3,649 275,370

126 12,700 2,458 746 1,007 17,037

(123,182) (2,276) (125,458)

123,280 36,300 4,243 2,119 1,007 166,949

55,379 686 138 9 56,212 219,158

126,195 5,021 420 2,468 249 134,353

(123,182) (2,276) (125,458)

58,392 5,707 558 201 249 65,107 101,842

- 95 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
Changes during the period (9 months) January 1, 2010 Rp '000,000 Cost Vehicles Heavy equipment Machineries Total Accumulated depreciation Vehicles Heavy equipment Machineries Total Net Book value Transfer to the lessee at the end of contract Rp '000,000 September 30, 2010 (Unaudited) Rp '000,000

Additions Rp '000,000

265,745 13,600 1,375 280,720

(5,641) (5,641)

260,104 13,600 1,375 275,079

27,438 8 61 27,507

(5,641)

21,797 8 61 21,866 253,213

(5,641)

January 1, 2010 Rp '000,000 Cost Vehicles Heavy equipment Machineries Software Total Accumulated depreciation Vehicles Heavy equipment Machineries Software Total Net Book value

Changes during the year Transfer to the lessee Additions at the end of contract Rp '000,000 Rp '000,000

December 31, 2010 Rp '000,000

265,741 23,600 1,785 3,649 294,775

(19,405) (19,405)

246,336 23,600 1,785 3,649 275,370

74,784 686 138 9 75,617

(19,405) (19,405)

55,379 686 138 9 56,212 219,158

15. Securities Agent Receivables


September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Receivables from customers Receivables from PT KPEI Commissions receivable Receivables from other securities companies Total 175,970 152,425 8,111 170 336,676 225,234 150,909 4,454 380,597 December 31, 2009 Rp '000,000 23,144 44,147 2,906 70,197

2010 Rp '000,000 96,143 64,160 5,168 10 165,481

2008 Rp '000,000 72,346 40,995 2,100 115,441

- 96 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 Receivables from PT Kliring Penjaminan Efek Indonesia (KPEI), receivables from other securities companies, and customers pertain to receivables in relation to purchases and sales of shares and other securities (net) which have not yet been received as of consolidated statement of financial position dates. Management did not provide allowance for impairment losses on securities agent receivables because they believe that all such receivables are collectible.

16. Other Accounts Receivable


September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Policy loans Interest receivables Mortgage receivables Claims receivable Loans to employees and marketing agents Loans to associated companies Receivable from sale of investment Others Total 694,364 87,846 21,536 6,310 4,083 386 36,859 851,384 220,289 54,482 33,042 7,002 2,962 357 38,237 45,565 401,936 December 31, 2009 Rp '000,000 424,677 65,137 24,128 3,412 3,283 376 22,563 543,576

2010 Rp '000,000 415,277 61,322 20,063 10,640 3,800 360 30,894 542,356

2008 Rp '000,000 534,886 51,725 25,901 9,459 2,617 438 25,008 650,034

Policy loans represent policy cash value provided in the form of loans to the policyholders. Average interest rates per annum on policy loans are as follows:
September 30, (Unaudited) 2011 2010 Rupiah Foreign currency 14.00% 6.00% December 31, 2009

2010

2008 18.00% 9.00%

9.00% - 18.00% 14.00% - 16.00% 8.50% - 18.00% 5.10% - 10.00% 6.00% - 14.00% 2.60% - 10.00%

Interest receivables consist of interest from time deposits and short-term investments. Mortgage receivables represent loans cash value provided by PT Asuransi Sinar Mas and PT Asuransi Jiwa Sinarmas MSIG (formerly PT Asuransi Jiwa Sinarmas), subsidiaries, to their employees and third parties for purchase of land or building. Mortgage loans granted to employees bear special interest rate while those granted to third parties bear prevailing market interest rate. Payments are made through monthly installment. These receivables are collateralized with land or buildings certificate of ownership. Receivable from sale of investment represents the receivable from sale of all of the Parent Companys investment in shares of PT Certis CISCO (Note 17). Claims receivable represent receivables from policyholders in relation to payment of claims by subsidiaries in excess of the insurance limit of policyholders. As of September 30, 2011 and 2010, and December 31, 2010, 2009 and 2008, loans to associated companies represent unsecured loans given to PT JobStreet Indonesia amounting to US$ 40,000 with maturity date of December 31, 2011. As of September 30, 2011 and 2010, and December 31, 2010, 2009 and 2008, the consolidated balance of other accounts receivable from related parties amounted to Rp 4,352 million, Rp 5,263 million, Rp 6,234 million, Rp 5,455 million and Rp 4,236 million, respectively (Note 55).

- 97 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 Transactions with related parties were done under similar terms and conditions as those done with third parties. As of September 30, 2011 and 2010, and December 31, 2010, 2009 and 2008, the consolidated balance of other accounts receivable denominated in foreign currency amounted to US$ 9,907,970 (equivalent to Rp 87,393 million), US$ 3,623,664 (equivalent to Rp 32,339 million), US$ 6,552,016 (equivalent to Rp 58,943 million), US$ 3,954,719 (equivalent to Rp 37,172 million) and US$ 6,017,392 (equivalent tp Rp 65,879 million), respectively (Note 60). Management did not provide allowance for doubtful accounts on other accounts receivable since they believe that all such receivables are collectible.

17. Investment in Shares of Stock As of September 30, 2011 and December 31, 2010, investment in shares with percentage of ownership of below 20% and investment in share with buyback option by previous shareholder are categorized as available for sale (AFS) financial assets and in the absence of basis of fair value are stated at acquisition cost.
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Parent Company's investment in shares of stock Equity method AFS - acquisition cost Total Subsidiaries' investments in shares of stock Equity method AFS - acquisition cost Total Total December 31, 2009 Rp '000,000

2010 Rp '000,000

2008 Rp '000,000

209,883 177,578 387,461

199,300 177,578 376,878

204,575 177,578 382,153

167,419 177,578 344,997

124,558 177,578 302,136

132,447 66,652 199,099 586,560

16,117 159,604 175,721 552,599

17,088 159,604 176,692 558,845

16,117 11,147 27,264 372,261

15,999 3,068 19,067 321,203

a.

Parent Companys Investments in Shares of Stock


Changes during the period ( 9 months ) Gain (loss) on change in ownership Additional Equity in interest in Deduction from investment net income subsidiaries investment Rp '000,000 Rp '000,000 Rp '000,000 Rp '000,000

September 30,
2011

Equity Method

Percentage of ownership %

January 1, 2011 Rp '000,000

(Unaudited) Rp '000,000

Associates PT Asuransi Jiwa Mega Life PT Panji Ratu Jakarta PT Super Wahana Tehno PT JobStreet Indonesia Total AFS - acquisition cost PT Oto Multiartha PT Summit Oto Finance Total

50.00 21.02 35.19 40.00

177,025 17,372 9,481 697 204,575

4,869 8 385 46 5,308

181,894 17,380 9,866 743 209,883

16.14 0.28

176,309 1,269 177,578

176,309 1,269 177,578

- 98 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
Changes during the period (9 months) Gain (loss) on change Equity in in ownership January 1, Additional net income interest in 2010 Reclassification investment (loss) subsidiaries Rp '000,000 Rp '000,000 Rp '000,000 Rp '000,000 Rp '000,000

Percentage of ownership % Equity Method Associates PT Asuransi Jiwa Mega Life PT Panji Ratu Jakarta PT Certis CISCO PT Super Wahana Tehno PT JobStreet Indonesia Total AFS - acquisition cost PT Oto Multiartha PT Summit Oto Finance Total 16.14 0.28

September 30, 2010 Deduction from investment (Unaudited) Rp '000,000 Rp '000,000

50.00 21.02 49.00 35.19 40.00

150,634 7,181 9,604 167,419

18,028 18,028

19,600 19,600

21,216 100 1,457 (103) 443 23,113

(622) (622)

(28,238) (28,238)

171,850 17,506 9,501 443 199,300

176,309 1,269 177,578

176,309 1,269 177,578

Percentage of ownership % Equity Method Associates PT Asuransi Jiwa Mega Life PT Panji Ratu Jakarta PT Super Wahana Tehno PT JobStreet Indonesia PT Certis CISCO Total AFS - acquisition cost PT Oto Multiartha PT Summit Oto Finance Total 16.14 0.28

Changes during 2010 (One Year) Gain (loss) on change Equity in in ownership January 1, Additional net income interest in 2010 Reclassification investment (loss) subsidiaries Rp '000,000 Rp '000,000 Rp '000,000 Rp '000,000

Deduction from December 31 investment 2010 Rp '000,000 Rp '000,000

50.00 21.02 49.00 35.19 40.00

150,634 9,604 7,181 167,419

18,028 18,028

19,600 19,600

26,391 (34) (123) 697 1,457 28,388

(622) (622)

(28,238) (28,238)

177,025 17,372 9,481 697 204,575

176,309 1,269 177,578

176,309 1,269 177,578

Changes during 2009 (One Year) Gain (loss) on change Equity in in ownership Percentage January 1, Additional net income interest in Deduction from December 31 2009 investment (loss) subsidiaries investment 2009 of ownership % Rp '000,000 Rp '000,000 Rp '000,000 Rp '000,000 Rp '000,000 Rp '000,000 Equity Method Associates PT Asuransi Jiwa Mega Life PT Certis CISCO PT Super Wahana Tehno PT JobStreet Indonesia Total Cost Method PT Oto Multiartha PT Summit Oto Finance Total 16.14 0.28 176,309 1,269 177,578 176,309 1,269 177,578 50.00 49.00 35.19 40.00 107,294 8,475 8,789 124,558 43,340 (1,294) (126) 41,920 941 941 150,634 7,181 9,604 167,419

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
Changes during 2008 (One Year) Gain (loss) on change Equity in in ownership January 1, Additional net income interest in Deduction from December 31, 2008 investment (loss) subsidiaries investment 2008 Rp '000,000 Rp '000,000 Rp '000,000 Rp '000,000 Rp '000,000 Rp '000,000 -

Percentage of ownership % Equity Method Associates PT Asuransi Jiwa Mega Life PT Certis CISCO PT Super Wahana Tehno PT JobStreet Indonesia Total Cost Method PT Oto Multiartha PT Summit Oto Finance Total 16.14 0.28 50.00 49.00 46.44 40.00

103,440 16,939 9,846 130,225

3,854 (8,464) (1,057) (5,667)

107,294 8,475 8,789 124,558

176,309 1,269 177,578

176,309 1,269 177,578

Equity Method PT Panji Ratu Jakarta (PRJ) In July 2010, Trade United Investments Limited (British Virgin Island), shareholder of PRJ, converted the bonds to shares of PRJ, thus, decreasing the ownership interest of Parent Company in PRJ, from 99.53% to 21.02% (Note 34). Therefore, since July 2010, the Parent Companys investment in PRJ is accounted for using the equity method and PRJs financial statements are no longer consolidated with the Parent Companys financial statements. The impact of the dilution in ownership interest amounting to Rp (622) million was recognized as Other equity components Gain on change in ownership interest in a subsidiaries and associates in equity section. PT Certis CISCO (CISCO) CISCO, domiciled in Jakarta, is engaged in security services. The investment in shares of CISCO was acquired by the Parent Company in April 1997. On June 26, 2009, the Parent Company made advances for investment in shares amounting to Rp 19,600 million and such investment is effective in April 2010. In September 2010, the Parent Company has sold to PT Kesara, third party, all of its investment in CISCO for Rp 38,237 million, with gain on sale of such investment amounting to Rp 12,718 million. PT Super Wahana Tehno (SWT) SWT, domiciled in Jakarta, is engaged in trading and packed drinking water industry. In September 2009, Nihon Trim Co. Ltd. increased its investment in shares of SWT by Rp 8,640 million, which resulted in decrease in Parent Companys ownership interest in SWT from 46.44% to 35.19%.The impact of the dilution in ownership interest amounting to Rp 941 million was recognized as Other equity components Gain on change in ownership interest in a subsidiaries and associates in equity section.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 The condensed financial information of the associates are as follows :
September 30, (Unaudited) 2011 2010 Total Assets Total Liabilities Total Equity Net Income (Loss) 3,348,788 2,873,740 475,048 11,758 4,712,928 4,259,381 453,547 44,300 December 31, 2009 6,375,978 5,993,500 382,478 84,382

2010 4,353,106 3,889,814 463,292 54,045

2008 3,793,979 3,544,524 249,455 (10,891)

AFS Acquisition Cost PT Oto Multiartha (OM) OM, domiciled in Jakarta, is engaged in multifinance business. The investment in OM was acquired by the Parent Company since May 1996. On January 2, 2008, the shareholders of OM, agreed to the conversion of OMs share, removal of share classification, restructuring and allocation of OMs shares to each shareholder. Those transactions had decreased the ownership interest of the Parent Company in OM from 21.59% to 19.70%, thus, investment in OM has been accounted for using the cost method instead of equity method. On December 23, 2008, the majority shareholders of OM increased its investments in shares of OM. The increase in investments resulted to a further decrease in ownership interest of Parent Company in OM from 19.70% to 16.14%. b. Subsidiaries Investments in shares of stock
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Equity method PT LIG Insurance Indonesia PT Bintang Rajawali Perkasa Subtotal Available for sale - at acquisition cost PT Bintang Rajawali Perkasa Aries Capital Partner II PT Bursa Komoditi dan Derivatif Indonesia PT Kustodian Sentral Efek Indonesia Konsorsium Asuransi Risiko Khusus PT Tugu Reasuransi Indonesia PT Rizki Lancar Sentosa PT Asuransi MAIPARK Indonesia Fair Oil & Energy Insurance Syndicate PT Pemeringkat Efek Indonesia PT Damai Indah Padang Golf PT Bursa Efek Indonesia PT Sedana Golf PT Menara Proteksi Indonesia Subtotal Total December 31, 2009 Rp '000,000

2010 Rp '000,000

2008 Rp '000,000

34,447 98,000 132,447 43,548 8,000 6,600 3,000 2,500 1,803 455 350 140 135 101 20 66,652 199,099

16,117 16,117 145,000 8,000 600 3,000 1,803 455 350 140 135 101 20 159,604 175,721

17,088 17,088 145,000 8,000 600 3,000 1,803 455 350 140 135 101 20 159,604 176,692

16,117 16,117 6,000 600 2,000 1,801 350 140 135 101 20 11,147 27,264

15,999 15,999 600 1,722 350 140 135 101 20 3,068 19,067

Equity Method ASM established LIG as a joint venture with LG Korea. ASM has 30% ownership interest in LIG. In January 2011, PT Asuransi Sinar Mas (ASM) increased its investment in shares of PT LIG Insurance Indonesia (LIG) by Rp 15,000 million. This additional investment did not change ASMs ownership interest in LIG.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 Available for sale acquisition cost In May 2011, PT Asuransi Jiwa Sinarmas MSIG (formerly PT Asuransi Jiwa Sinarmas) (AJSM) purchased shares of PT Rizky Lancar Sentosa from PT Jasnita Investindo, previous shareholder, amounting to Rp 2,500 million. In April 2011, AJSM purchased 5,556 shares of Aries Capital Partner II, British Virgin Islands, amounting to Rp 43,548 million, or equivalent to 7.94% ownership interest. In January 2011, PT Sinarmas Sekuritas purchased 60 shares of PT Kustodian Sentral Efek Indonesia from PT Eurocapital Pereqrine Securities amounting to Rp 6,000 million. In May 2010, PT Shinta Utama (SU) purchased shares of stock of PT Bintang Rajawali Perkasa (BRP) from the previous shareholder, amounting to 145,000 million or 68.5% ownership interest in BRP. Despite the 68.5% ownership interest in BRP, the investment in BRP is accounted for using the cost method and its financial statements are not consolidated with the financial statements of PT Shinta Utama, since the previous shareholder has the right on dividend income or other income relating to the aforementioned shares and shall still be responsible for any liability during the 12 months period or until the agreement is executed. The previous shareholder has given the option for buyback of the shares at least within 24 months. In September 2011, SU has sold 28.5% of its investment in BRP to PT Graha Indo Selaras, third party, for Rp 47,000 million. In 2010 and 2009, PT Sinarmas Future (SF) purchased shares of stock of PT Bursa Komoditi dan Derivatif Indonesia, which engages in commodity trading, amounting to Rp 2,000 million and Rp 6,000 million, respectively. In 2010 and 2009, ASM purchased shares of stock of Konsorsium Asuransi Risiko Khusus PT Tugu Reasuransi Indonesia, which engages in reinsurance business, amounting to Rp 1,000 million and Rp 2,000 million, respectively, or 16.31% ownership interest in AMI. In 2010 and 2009, ASM increased its investments in shares of PT Asuransi MAIPARK Indonesia (AMI) by Rp 2 million and Rp 79 million, respectively, or equivalent to 3.96% ownership interest. In June 2010, PT Asuransi Sinar Mas (ASM) purchased shares of stock of Fair Oil & Energy Insurance Syndicate, Bahrain, amounting to Rp 455 million or equivalent to 3.6% ownership interest.

18. Investment Properties As of September 30, 2011 and 2010, and December 31, 2010, 2009 and 2008, these represent investments in land and building of PT Asuransi Sinar Mas, PT Asuransi Jiwa Sinarmas MSIG (formerly PT Asuransi Jiwa Sinarmas), PT Shinta Utama, and PT AB Sinar Mas Multifinance, subsidiaries. (2009 and 2008: included PT Panji Ratu Jakarta, this subsidiary was not consolidated in 2010 Note 17).

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 Following are the balances of and changes in investment properties and the related accumulated depreciation:
Changes during the period (9 months) January 1, 2011 Rp '000,000 At Cost Land Building Total Accumulated Depreciation Building Net Book Value 13,129 21,368 34,497 Additions Rp '000,000 Deductions Rp '000,000 September 30, 2011 Reclassification (Unaudited) Rp '000,000 Rp '000,000 13,129 21,368 34,497

4,766 29,731

795

5,561 28,936

Changes during the period (9 months) January 1, 2010 Rp '000,000 At Cost Land Building Total Accumulated Depreciation Building Net Book Value 79,551 12,370 91,921 Additions Rp '000,000 2,800 2,800 Deductions Rp '000,000 (78,232) (678) (78,910)

September 30, 2010 Reclassification (Unaudited) Rp '000,000 Rp '000,000 1,319 14,492 15,811

4,110 87,811

490

(34)

4,566 11,245

January 1, 2010 Rp '000,000 At Cost Land Building Total Accumulated Depreciation Building Net Book Value 79,551 12,370 91,921

Changes during 2010 (One Year) December 31 , Additions Deductions Reclassification 2010 Rp '000,000 Rp '000,000 Rp '000,000 Rp '000,000 11,810 9,676 21,486 (78,232) (678) (78,910) 13,129 21,368 34,497

4,110 87,811

690

(34)

4,766 29,731

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
January 1, 2009 Rp '000,000 At Cost Land Building Total Accumulated Depreciation Building Net Book Value 97,714 17,572 115,286 Changes during 2009 (One Year) December 31 , Additions Deductions Reclassification 2009 Rp '000,000 Rp '000,000 Rp '000,000 Rp '000,000 1,319 1,319 (19,482) (5,202) (24,684) 79,551 12,370 91,921

820 114,466

3,550

(260)

4,110 87,811

January 1, 2008 Rp '000,000 At Cost Land Building Total Accumulated Depreciation Building Book Value 90,784 48,869 139,653

December 31, Changes during 2008 ( One Year ) Addition Deduction Reclassification 2008 Rp '000,000 Rp '000,000 Rp '000,000 Rp '000,000 14,408 3,923 18,331 (7,478) (35,220) (42,698) 97,714 17,572 115,286

139,653

820

820 114,466

Depreciation charged to operations for the nine month periods September 30, 2011 and 2010, and the years ended December 31, 2010, 2009 and 2008 amounted to Rp 795 million, Rp 490 million, Rp 690 million, Rp 3,550 million and Rp 820 million, respectively. Deduction in investment properties in 2010 represents beginning balance - cost and accumulated depreciation of PT Panji Ratu Jakarta amounting to Rp 78,910 million and Rp 34 million, respectively. Reclassification of investment properties to property and equipment in 2009 and 2008 represents reclassification made by PT Asuransi Sinar Mas, a subsidiary (Note 19). As of September 30, 2011 and 2010, and December 31, 2010, 2009 and 2008, investment properties are insured with PT Axa Indonesia and other insurance companies for US$ 1,237,112. Management believes that the insurance coverages are adequate to cover any possible losses that might arise from the assets insured. Management believes that there is no impairment in value of the aforementioned assets as of September 30, 2011 and 2010, and December 31, 2010, 2009 and 2008.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 19. Property and Equipment
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 At cost Direct acquisitions Land Buildings Office equipment Motor vehicles Furniture and fixtures Machineries and equipment Construction in progress Leased assets Motor vehicles Total Accumulated depreciation Direct acquisitions Building Office equipment Motor vehicles Furniture and fixtures Machineries and equipment Leased assets Motor vehicles Total Net Book Value December 31, 2009 Rp '000,000

2010 Rp '000,000

2008 Rp '000,000

198,750 446,055 425,441 133,478 22,813 5,704 51,777 1,284,018

162,842 358,527 297,882 89,112 19,074 3,862 12,780 944,079

161,419 391,600 306,248 98,320 20,209 3,918 28,198 1,009,912

154,398 328,407 256,758 75,939 15,942 2,262 11,975 845,681

114,812 240,272 201,297 69,401 12,862 2,595 27,158 725 669,122

89,648 162,458 59,884 15,748 2,329 330,067 953,951

68,764 122,741 49,924 12,238 1,729 255,396 688,683

73,765 130,869 52,101 13,206 1,878 271,819 738,093

56,018 100,031 42,299 10,450 1,434 210,232 635,449

41,328 76,065 41,278 8,690 1,608 445 169,414 499,708

Following are the balances and changes in the consolidated cost of property and equipment and the related accumulated depreciation:
Changes during the period ( 9 months ) January 1, 2011 Rp '000,000 At cost Direct acquisitions Land Buildings Office equipment Motor vehicles Furniture and fixtures Machineries and equipment Construction in progress Total Accumulated depreciation Direct acquisitions Buildings Office equipment Motor vehicles Furniture and fixtures Machineries and equipment Total Net Book Value Additions Rp '000,000 Deductions Rp '000,000 September 30, 2011 Reclassifications (Unaudited) Rp '000,000 Rp '000,000

161,419 391,600 306,248 98,320 20,209 3,918 28,198 1,009,912

37,209 32,456 123,995 40,993 1,818 1,118 52,061 289,650

(1,649) (247) (4,591) (5,835) (162) (328) (2,425) (15,237)

1,771 22,246 (211) 948 996 (26,057) (307)

198,750 446,055 425,441 133,478 22,813 5,704 51,777 1,284,018

73,765 130,869 52,101 13,206 1,878 271,819 738,093

16,138 35,979 12,289 2,683 779 67,868

(247) (4,386) (4,506) (136) (328) (9,603)

(12) (5) (17)

89,656 162,450 59,884 15,748 2,329 330,067 953,951

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
Changes during the period ( 9 months ) January 1, 2010 Rp '000,000 At cost Direct acquisitions Land Buildings Office equipment Motor vehicles Furniture and fixtures Machineries and equipment Construction in progress Total Accumulated depreciation Direct acquisitions Buildings Office equipment Motor vehicles Furniture and fixtures Machineries and equipment Total Net Book Value Additions Rp '000,000 Deductions Rp '000,000 September 30, 2010 Reclassifications (Unaudited) Rp '000,000 Rp '000,000

154,398 328,407 256,758 75,939 15,942 2,262 11,975 845,681

9,404 31,493 42,981 16,400 3,168 1,600 1,005 106,051

(960) (1,573) (1,857) (3,227) (36) (7,653)

200 (200) -

162,842 358,527 297,882 89,112 19,074 3,862 12,780 944,079

56,018 100,031 42,299 10,450 1,434 210,232 635,449

12,973 24,110 9,648 1,814 295 48,840

(227) (1,400) (2,023) (26) (3,676)

68,764 122,741 49,924 12,238 1,729 255,396 688,683

January 1, 2010 Rp '000,000 At cost Direct acquisitions Land Buildings Office equipment Motor vehicles Furniture and fixtures Machineries and equipment Construction in progress Total Accumulated depreciation Direct acquisitions Buildings Office equipment Motor vehicles Furniture and fixtures Machineries and equipment Total Net Book Value

Changes during 2010 ( One Year ) Additions Deductions Reclassifications Rp '000,000 Rp '000,000 Rp '000,000

December 31, 2010 Rp '000,000

154,398 328,407 256,758 75,939 15,942 2,262 11,975 845,681

7,498 63,740 52,541 27,055 4,568 1,656 16,423 173,481

(477) (747) (3,051) (4,674) (301) (9,250)

200 (200) -

161,419 391,600 306,248 98,320 20,209 3,918 28,198 1,009,912

56,018 100,031 42,299 10,450 1,434 210,232 635,449

17,977 33,812 13,207 3,044 444 68,484

(230) (2,974) (3,405) (288) (6,897)

73,765 130,869 52,101 13,206 1,878 271,819 738,093

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
January 1, 2009 Rp '000,000 At cost Direct acquisitions Land Buildings Office equipment Motor vehicles Furniture and fixtures Machineries and equipment Leased assets Motor vehicles Construction in progress Total Accumulated depreciation Direct acquisitions Buildings Office equipment Motor vehicles Furniture and fixtures Machineries and equipment Leased assets Motor vehicles Total Net Book Value Changes during 2009 ( One Year ) Additions Deductions Reclassifications Rp '000,000 Rp '000,000 Rp '000,000 December 31, 2009 Rp '000,000

114,812 240,272 201,297 69,401 12,862 2,595 725 27,158 669,122

19,893 54,000 57,198 18,770 3,165 315 1,768 155,109

(43) (17) (1,719) (12,957) (85) (648) (15,469)

19,736 34,152 (18) 725 (725) (16,951) 36,919

154,398 328,407 256,758 75,939 15,942 2,262 11,975 845,681

41,328 76,065 41,278 8,690 1,608 445 169,414 499,708


January 1, 2008 Rp '000,000

14,433 25,621 11,108 1,845 310 53,317

(3) (1,645) (10,532) (85) (484) (12,749)

260 (10) 445 (445) 250

56,018 100,031 42,299 10,450 1,434 210,232 635,449

Changes during 2008 ( One Year ) Additions Deduc tions Reclassifications Rp '000,000 Rp '000,000 Rp '000,000

December 31, 2008 Rp '000,000

At cost Direct acquisitions Land Buildings Office equipment Motor vehicles Furniture and fixtures Machineries and equipment Construction in progress Leased assets Motor vehicles Total Accumulated depreciation Direct acquisitions Buildings Office equipment Motor vehicles Furniture and fixtures Machineries and equipment Leased assets Motor vehicles Total Net Book Value

69,936 156,236 145,853 70,511 10,040 2,119 13,840 2,669 471,204

37,399 36,811 63,028 9,235 2,822 476 25,547 175,318

(208) (7,522) (12,289) (20,019)

7,477 47,433 (62) 1,944 (12,229) (1,944) 42,619

114,812 240,272 201,297 69,401 12,862 2,595 27,158 725 669,122

30,548 62,742 37,240 6,928 1,315 1,549 140,322 330,882

10,843 20,715 10,781 1,762 293 134 44,528

(65) (7,374) (7,981) (15,420)

2 (18) 1,238 (1,238) (16)

41,328 76,065 41,278 8,690 1,608 445 169,414 499,708

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 Deduction of property and equpment in 2010 included beginning balance - cost and accumulated depreciation of PT Panji Ratu Jakarta, amounting to Rp 11 million and Rp 1 million, respectively. Reclassification of property and equipment in 2011 represents reclassification of property and equipment to noncurrent assets held for sale in relation to selling investment in shares of PT Asuransi Sumit Oto in October 2011. Reclassification of property and equipment in 2009 includes reclassification of investment property - land and building (Note 18) to property and equipment by PT Asuransi Sinarmas (ASM), amounting to Rp 24,424 million, other assets (Note 23) to property and equipment by PT Bank Sinarmas Tbk, amounting to Rp 255 million, foreclosed properties (Note 22) to property and equipment by PT Sinar Mas Multifinance, amounting to Rp 10,898 million, property and equipment to segregated fund net asset sharia (Note 11) by PT Asuransi Jiwa Sinarmas, amounting to Rp 8 million, other assets (Note 23) to property and equipment by ASM, amounting to Rp 1,100 million. Reclassification of property and equipment in 2008 includes reclassification of investment property land and building (Note 18) to property and equipment by ASM, amounting to Rp 42,698 million, property and equipment to segregated fund net asset sharia (Note 11) by PT Asuransi Jiwa Sinarmas MSIG (formerly PT Asuransi Jiwa Sinarmas), amounting to Rp 28 million, property and equipment to other assets (Note 23) by ASM, amounting to Rp 67 million. Depreciation charged to operations for the nine month periods ended September 30, 2011 and 2010, and for the years ended December 31, 2010, 2009 and 2008 amounted to Rp 67,868 million and Rp 48,840 million, and Rp 68,484 million, Rp 53,317 million and Rp 44,528 million, respectively. Depreciation which were included in direct cost of service center and cost of goods sold for the nine month periods September 30, 2011 and 2010, and for the years ended December 31, 2010, 2009 and 2008 amounted to Rp 821 million, Rp 335 million, Rp 498 million, Rp 366 million and Rp 285 million, respectively. Deductions in property and equipment pertain to the sale of certain property and equipment with details as follows:
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Selling price Net book value Gain on sale of property and equipment (Note 47) 7,509 5,634 1,875 5,335 3,967 1,368 2010 Rp '000,000 4,505 2,343 2,162 December 31, 2009 Rp '000,000 5,211 2,720 2,491 2008 Rp '000,000 6,514 4,599 1,915

As of September 30, 2011 and 2010, and December 31, 2010, 2009 and 2008, property and equipment are insured with ASM, a subsidiary, and other insurance companies for Rp 1,001,258 million and US$ 4,193,611 and Rp 782,922 million and US$ 4,854,358, respectively, (2010: Rp 711,416 million and US$ 4,695,747, 2009: Rp 517,093 million and US$ 4,783,703, 2008: 254,632 million and US$ 4,783,703, respectively). Management believes that the insurance coverages are adequate to cover any possible losses that might arise from the assets insured. Transactions with related parties were done under similar terms and conditions as those done with third parties. Management believes that there is no impairment in value of the aforementioned assets as of September 30, 2011 and 2010, and December 31, 2010, 2009 and 2008.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 20. Property Under Build, Operate and Transfer Agreement As of September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008, property building under build, operate and transfer agreement represents the subject of cooperation agreement between the Parent Company and PT Asuransi Sinar Mas (ASM), a subsidiary, with details as follows:
Changes during the period (9 months) January 1, 2011 Rp '000,000 At cost Building Accumulated depreciation Building Net Book Value 79,041 7,825 71,216
Changes during the period (9 months) January 1, 2010 Rp '000,000 At cost Building Accumulated depreciation Building Net Book Value 77,988 3,899 74,089 Addition Rp '000,000 1,484 2,925 Deduction Rp '000,000 -

Addition Rp '000,000 74 2,946

Deduction Rp '000,000 -

September 30, 2011 Reclassification (Unaudited) Rp '000,000 Rp '000,000 79,115 10,771 68,344
September 30, 2010 Reclassification (Unaudited) Rp '000,000 Rp '000,000 79,472 6,824 72,648

January 1, 2010 Rp '000,000 At cost Building Accumulated depreciation Building Net Book Value 77,988 3,899 74,089

Changes during 2010 (One Year) December 31, Addition Deduction Reclassification 2010 Rp '000,000 Rp '000,000 Rp '000,000 Rp '000,000 1,053 3,926 79,041 7,825 71,216

January 1, 2009 Rp '000,000 At cost Building Building in progress Total Accumulated depreciation Building Net Book Value 57,527 57,527 57,527

Changes during 2009 (One Year) December 31, Addition Deduction Reclassification 2009 Rp '000,000 Rp '000,000 Rp '000,000 Rp '000,000 20,461 20,461 3,899 77,988 (77,988) 77,988 77,988 3,899 74,089

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
January 1, 2008 Rp '000,000 At cost Building under construction Accumulated depreciation Building Net Book Value 24,383 24,383 December 31, Changes during 2008 (One Year) Addition Deduction Reclassification 2008 Rp '000,000 Rp '000,000 Rp '000,000 Rp '000,000 33,144 57,527 57,527

Building under construction represents the accumulated costs of building construction under the Cooperation Agreement of Build, Operate and Transfer, for Plaza Simas office building which is located at Jl. Fachrudin, Central Jakarta. The Cooperation period is 99 years which will commence at the time of start of operations of the building. The ownership of the building will be transferred to ASM at the end of the Cooperation Agreement. As of September 30, 2011, Property under Build, Operate and Transfer Agreement are insured with PT Asuransi Sinar Mas, a subsidiary, for Rp 107,887 million. Management believes that the insurance coverage is adequate to cover any possible losses that might arise from the assets insured. As of September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008, based on the Company management, there is no impairment in value of property under build, operate and transfer agreement. 21. Assets for Lease This account represents assets for lease owned by PT AB Sinar Mas Multifinance and PT Sinar Mas Multifinance, subsidiaries, with details as follows:
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 At cost Motor vehicles Office equipment Machineries and equipment Total Accumulated depreciation Motor vehicles Office equipment Machineries and equipment Total Net Book Value 53,816 27,916 19,864 101,596 17,771 22,312 16,877 56,960 44,636 28,995 24,976 18,110 72,081 9,855 17,753 14,509 42,117 29,964 December 31, 2009 Rp '000,000 18,846 22,110 18,110 59,066 6,735 14,027 12,348 33,110 25,956

2010 Rp '000,000 34,740 25,929 18,776 79,445 11,364 19,200 15,257 45,821 33,624

2008 Rp '000,000 13,630 17,749 18,110 49,489 3,669 8,134 6,585 18,388 31,101

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 Following are the balances and changes in the cost of assets for lease and the related accumulated depreciation:
Changes during the period (9 months) January 1, 2011 Rp '000,000 At cost Motor vehicles Office equipment Machineries and equipment Total Accumulated depreciation Motor vehicles Office equipment Machineries and equipment Total Net Book Value 34,740 25,929 18,776 79,445 11,364 19,200 15,257 45,821 33,624 Additions Rp '000,000 19,076 1,987 1,088 22,151 6,407 3,112 1,620 11,139 Deductions Rp '000,000 September 30, 2011 (Unaudited) Rp '000,000 53,816 27,916 19,864 101,596 17,771 22,312 16,877 56,960 44,636

Changes during the period (9 months) January 1, 2010 Rp '000,000 At cost Motor vehicles Office equipment Machineries and equipment Total Accumulated depreciation Motor vehicles Office equipment Machineries and equipment Total Net Book Value 18,846 22,110 18,110 59,066 6,735 14,027 12,348 33,110 25,956 Additions Rp '000,000 10,149 2,866 13,015 3,120 3,726 2,161 9,007 Deductions Rp '000,000 -

September 30, 2010 (Unaudited) Rp '000,000 28,995 24,976 18,110 72,081 9,855 17,753 14,509 42,117 29,964

January 1, 2010 Rp '000,000 At cost Motor vehicles Office equipment Machineries and equipment Total Accumulated depreciation Motor vehicles Office equipment Machineries and equipment Total Net Book Value 18,846 22,110 18,110 59,066 6,735 14,027 12,348 33,110 25,956

Changes during 2010 (One Year) Additions Deductions Rp '000,000 Rp '000,000 15,894 3,819 666 20,379 4,629 5,173 2,909 12,711 -

December 31, 2010 Rp '000,000 34,740 25,929 18,776 79,445 11,364 19,200 15,257 45,821 33,624

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
January 1, 2009 Rp '000,000 At cost Motor vehicles Office equipment Machineries and equipment Total Accumulated depreciation Motor vehicles Office equipment Machineries and equipment Total Net Book Value 13,630 17,749 18,110 49,489 3,669 8,134 6,585 18,388 31,101 Changes during 2009 ( One Year ) Additions Deductions Rp '000,000 Rp '000,000 5,216 4,361 9,577 3,066 5,893 5,763 14,722 December 31, 2009 Rp '000,000 18,846 22,110 18,110 59,066 6,735 14,027 12,348 33,110 25,956

January 1, 2008 Rp '000,000 At cost Motor vehicles Office equipment Machineries and equipment Total Accumulated depreciation Motor vehicles Office equipment Machineries and equipment Total Net Book Value 13,086 7,997 11,194 32,277 4,002 2,028 1,399 7,429 24,848

Changes during 2008 (One Year) Additions Deductions Rp '000,000 Rp '000,000 5,701 9,752 6,916 22,369 2,909 6,106 5,186 14,201 (5,157) (5,157) (3,242) (3,242)

December 31, 2008 Rp '000,000 13,630 17,749 18,110 49,489 3,669 8,134 6,585 18,388 31,101

Deductions in assets for lease represent the sale of certain assets for lease with details as follows:
2008 Rp '000,000 Selling price Net book value Loss on sale of assets for lease (Note 52) 985 1,915 (930)

There were no assets for lease sold in 2011, 2010 and 2009. As of September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008, assets for lease are insured with PT Asuransi Sinar Mas, a subsidiary, for Rp 47,825 million, Rp 37,719 million, Rp 43,668 million, Rp 35,449 million and Rp 32,065 million, respectively. Management believes that the insurance coverages are adequate to cover any possible losses that might arise from the assets insured. Management believes that there is no impairment in value of the aforementioned assets for lease as of September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 22. Foreclosed Properties Foreclosed properties were obtained by PT Sinar Mas Mutifinance (SMF) and PT Bank Sinarmas Tbk (BS) subsidiaries, from settlement of their receivables from and loans to customers. SMFs ownership on the foreclosed properties is supported by Letter of Transfer of Rights to SMF and Power of Attorney to Sell.
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Land, houses, and apartements Vehicles Heavy equipment Total Allowance for impairment losses Net 75,475 12,159 87,634 (4,931) 82,703 68,467 5,894 792 75,153 (4,649) 70,504 December 31, 2009 Rp '000,000 67,089 2,188 792 70,069 (4,775) 65,294

2010 Rp '000,000 68,469 5,929 1,524 75,922 (4,683) 71,239

2008 Rp '000,000 78,911 797 79,708 (5,415) 74,293

These foreclosed properties are not insured. At this point in time, SMF and BS are still in the process of selling the foreclosed properties, i.e. by cooperating with property agents to sell the land, houses and apartment units. Reclassification of foreclosed properties to property and equipment in 2009 amounting to Rp 10,898 million represents reclassification made by SMF. As of September 30, 2011 and 2010 and, December 31, 2010, 2009 and 2008, management believes that the allowance for impairment losses is adequate to cover the possible losses which might arise from the decline in values of the foreclosed properties.

23. Other Assets


September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Advanced payment for purchase of property and equipment Prepaid expenses Advanced payment for buildings renovation Prepaid taxes Security deposits Inventories Derivative asset Advances for investment Others Total December 31, 2009 Rp '000,000

2010 Rp '000,000

2008 Rp '000,000

160,693 95,467 33,636 14,708 12,248 8,120 1,903 500 27,555 354,830

25,000 69,425 10,420 15,937 11,185 5,753 9,861 147,581

54,431 60,204 12,778 8,601 10,239 5,349 2,000 6,205 159,807

14,966 44,662 18,833 8,825 11,703 3,819 19,600 4,605 127,013

17,172 38,175 29,362 7,701 7,634 4,480 59,954 164,478

Prepaid expenses include prepayments of office rental, shares administration charges, stamp duties and insurance premiums. In November 2010, the Parent Company has made advances for investment in shares of PT Golden Health, amounting to Rp 500 million, and in December 2010, PT Shinta Utama has made advances for investment in shares of PT Golden Tropical, amounting to Rp 1,500 million.

- 113 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 As of September 30, 2011 and 2010, and December 31, 2010, 2009 and 2008, the consolidated balances of other assets from related parties amounted to Rp 7,731 million, Rp 5,952 million, Rp 9,622 million, Rp 11,912 million and Rp 46,496 million, respectively (Note 55). Transactions with related parties were done under similar terms and conditions as those done with third parties. As of September 30, 2011 and 2010, and December 31, 2010, 2009 and 2008, the consolidated balances of other assets denominated in foreign currency amounted to US$ 118,750 (equivalent to Rp 1,048 million), US$ 116,158 (equivalent to Rp 1,037 million), US$ 144,957 (equivalent to Rp 1,303 million), US$ 537,295 (equivalent to Rp 5,050 million) and US$ 139,869 (equivalent Rp 1,531 million), respectively (Note 60).

24. Deposits and Deposits from Other Banks These represent deposits and deposits from other banks placed in PT Bank Sinarmas Tbk, a subsidiary.
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Demand deposits Savings deposits Time deposits Deposits from other banks Total 1,467,833 1,929,059 9,679,999 328,109 13,405,000 1,429,210 1,243,039 5,457,347 243,942 8,373,538 December 31, 2009 Rp '000,000 1,072,107 970,389 4,409,600 238,626 6,690,722

2010 Rp '000,000 1,718,103 1,371,475 6,147,679 366,853 9,604,110

2008 Rp '000,000 645,021 594,076 3,539,979 80,045 4,859,121

a.

Demand deposits consist of:


September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Related parties (Note 55) Rupiah U.S. Dollar (Note 60) Subtotal Third parties Rupiah U.S. Dollar (Note 60) Subtotal Total December 31, 2009 Rp '000,000

2010 Rp '000,000

2008 Rp '000,000

229,619 131,813 361,432

291,126 244,992 536,118

304,123 493,501 797,624

257,699 212,374 470,073

53,342 129,775 183,117

673,519 432,882 1,106,401 1,467,833

438,953 454,139 893,092 1,429,210

422,312 498,167 920,479 1,718,103

297,804 304,230 602,034 1,072,107

273,817 188,087 461,904 645,021

As of September 30, 2011 and 2010, and December 31, 2010 and 2009, demand deposits Mudrabahah managed by Sharia unit, amounted to Rp 23,339 million, Rp 10,223 million, Rp 4,990 million and Rp 55 million, respectively. Average interest rates per annum on demand deposits are as follows:
September 30, (Unaudited) 2011 2010 Rupiah U.S. Dollar 1.00% - 6.00% 0.10% - 3.00% 1.50% - 5.00% 0.15% - 2.25% December 31, 2009 1.50% - 5.00% 0.15% - 1.25%

2010 1.50% - 5.00% 0.15% - 2.25%

2008 3.00% - 5.00% 0.50% - 1.50%

- 114 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 b. Savings deposits consist of:
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Rupiah Related parties (Note 55) Third parties Total December 31, 2009 Rp '000,000

2010 Rp '000,000

2008 Rp '000,000

7,212 1,921,847 1,929,059

5,154 1,237,885 1,243,039

7,668 1,363,807 1,371,475

4,164 966,225 970,389

16,863 577,213 594,076

As of September 30, 2011 and 2010, and December 31, 2010 and 2009, savings Mudrabahah managed by Sharia unit, amounted to Rp 7,149 milllion, Rp 748 million, Rp 2,124 million and Rp 60 million, respectively. Average interest rates per annum on savings deposits are as follows:
September 30, (Unaudited) 2011 2010 Rupiah 0.25% - 6.5% 2.50% - 6.50% December 31, 2009 2.50% - 8.00%

2010 2.50% - 6.50%

2008 4.00%-9.00%

c.

Time deposits consist of:


September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Related parties (Note 55) Rupiah U.S. Dollar (Note 60) Subtotal Third parties Rupiah U.S. Dollar (Note 60) Subtotal Total December 31, 2009 Rp '000,000

2010 Rp '000,000

2008 Rp '000,000

2,611,332 1,744,967 4,356,299

1,448,671 1,662,575 3,111,246

1,817,253 1,238,782 3,056,035

935,967 1,194,415 2,130,382

771,455 221,891 993,346

5,051,649 272,051 5,323,700 9,679,999

2,141,676 204,425 2,346,101 5,457,347

2,826,041 265,603 3,091,644 6,147,679

2,165,809 113,409 2,279,218 4,409,600

2,389,978 156,655 2,546,633 3,539,979

As of September 30, 2011 and 2010, and December 31, 2010 and 2009, time deposits Mudrabahah is managed by Sharia unit, amounting to Rp 829,061 million, Rp 57,369 million, Rp 199,210 million and Rp 100 million, respectively. Total time deposits which were blocked and used as collateral for credit guarantees, letters of credit and bank guarantees as of September 30, 2011 and 2010, and December 31, 2010, 2009 and 2008 amounted to Rp 1,487,948 million, Rp 886,305 million, Rp 956,189 million, Rp 878,472 million and Rp 250,943 million, respectively, (Note 13). Interest rates per annum on time deposits are as follows:
September 30, (Unaudited) 2011 2010 Rupiah U.S. Dollar 6.25% - 10.00% 7.00% - 8.50% 0.37% - 3.75% 2.25% - 2.75% December 31, 2009 6.75% - 8.75% 2.50% - 3.00%

2010 6.25% - 9.75% 2.50% - 2.75%

2008 7.75% - 13.00% 3.00% - 6.00%

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 d. Deposits from other banks consist of: 1. Demand deposits consist of:
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Related parties (Note 55) U.S. Dollar (Note 60) Third parties Rupiah Total 2010 Rp '000,000 December 31, 2009 Rp '000,000 2008 Rp '000,000

13,162 111,282 124,444

14,101 57,021 71,122

14,250 84,183 98,433

14,891 63,786 78,677

45 45

2.

Call Money consist of:


September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Third parties Rupiah U.S. Dollar (Note 60) Total 96,690 96,690 26,000 26,000 2010 Rp '000,000 55,000 55,000 December 31, 2009 Rp '000,000 110,000 110,000 2008 Rp '000,000 80,000 80,000

3.

Time deposits consist of:


September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Third parties Rupiah 106,975 146,820 2010 Rp '000,000 213,420 December 31, 2009 Rp '000,000 49,949 2008 Rp '000,000 -

Interest rates for deposits from other banks per annum are as follows:
September 30, (Unaudited) 2011 2010 Time deposits Call money 7.00% -7.50% 7.25% 6.75% - 8.25% 7.00% December 31, 2009

2010 6.50% - 7.25% 6.00%

2008

5.50% - 10.50% 6.30% - 9.00% 10.00% - 10.25%

Transactions with related parties were done under similar terms and conditions as those done with third parties. 25. Securities Sold Under Agreements to Repurchase As of September 30, 2011, investments in securities sold under agreement to repurchase was done by PT Sinarmas Sekuritas (September 30, 2010: PT Sinarmas Sekuritas, December 31, 2010: PT Sinarmas Sekuritas, 2009: PT Bank Sinarmas Tbk and PT Sinarmas Sekuritas, 2008: PT Bank Sinarmas Tbk), subsidiaries, consisting of :

Type of Investment Rupiah Share - Sinar Prima Reksa PT Tiga Pilar Sejahtera Food Tbk

September 30, 2011 (Unaudited) Maturity Net carrying Term Date value Rp'000,000

91 days

October 24, 2011

37,223

- 116 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008

Type of Investment Rupiah Share - Sinar Prima Reksa PT Tiga Pilar Sejahtera Food Tbk

September 30, 2010 (Unaudited) Maturity Net carrying Term Date value Rp'000,000

90 days

October 26, 2010

30,541

Type of Investment Rupiah Share - Sinar Prima Reksa PT Tiga Pilar Sejahtera Food Tbk

Term

December 31, 2010 Maturity Date

Net carrying value Rp'000,000

90 days

January 24, 2011

32,069

Type of Investment Rupiah Government Bonds - Bank Indonesia FR0028 FR0026 FR0038 FR0020 FR0023 Share - Sinar Prima Reksa PT Tiga Pilar Sejahtera Food Tbk Total

Term

December 31, 2009 Maturity Date

Net carrying value Rp'000,000

14 days 14 days 14 days 14 days 14 days

January 14, 2010 January 12, 2010 January 14, 2010 January 12, 2010 January 14, 2010

81,777 73,508 54,722 34,064 14,357

31 days

January 29, 2010

26,327 284,755

Type of Investment Rupiah - Bank Indonesia Government Bonds FR0028 ORI004 FR0038 Total

Term

December 31, 2008 Maturity Date

Net carrying value Rp '000,000

8 days 8 days 8 days

January 7, 2009 January 7, 2009 January 7, 2009

71,738 49,336 48,685 169,759

- 117 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 26. Accounts Payable
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Related parties (Note 55) Reinsurance payable Commissions payable Insurance claims payable Premiums payable Total Third parties Reinsurance payable Insurance claims payable Premiums payable Commissions payable Others Total Total December 31, 2009 Rp '000,000

2010 Rp '000,000

2008 Rp '000,000

18,200 9,257 430 310 28,197

6,505 7,312 1,459 324 15,600

7,181 3,216 1,868 181 12,446

4,304 2,153 2,247 8,704 -

2,330 4,912 1,772 9,014

191,607 63,208 19,151 16,873 2,086 292,925 321,122

171,499 68,524 17,354 12,512 1,359 271,248 286,848

54,769 98,605 8,073 22,844 2,115 186,406 198,852

132,134 56,148 56,028 20,439 1,586 266,335 275,039

171,738 26,963 13,452 8,364 2,271 222,788 231,802

The details of accounts payable based on currency:


September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Rupiah Insurance claims payable Reinsurance payable Commissions payable Premiums payable Others Total Foreign currency (Note 60) Reinsurance payable Insurance claims payable Commissions payable Premiums payable Total Total December 31, 2009 Rp '000,000

2010 Rp '000,000

2008 Rp '000,000

43,144 17,811 15,190 6,366 2,086 84,597

57,568 17,719 13,251 5,351 1,359 95,248

97,584 10,481 21,604 3,482 2,115 135,266

42,009 35,249 19,582 3,024 1,586 101,450

18,500 15,607 7,984 7,048 2,271 51,410

191,996 20,494 10,940 13,095 236,525 321,122

160,285 12,415 6,573 12,327 191,600 286,848

51,469 2,889 4,456 4,772 63,586 198,852

101,189 16,386 3,010 53,004 173,589 275,039

158,461 10,235 5,292 6,404 180,392 231,802

Reinsurance payables represent insurance premiums due to the reinsurance companies based on the reinsurance contract (treaty) for certain amount of insurance policies. Commissions payable represent commissions due to brokers and insurance agencies while insurance claims payable represent liabilities to policyholders in relation to claims which have been approved but the payments of which are still in process. Premiums payable represent co-insurance premium payable to co-insurance member arising from life insurance transaction. Transactions with related parties were done under similar terms and conditions as those done with third parties.

- 118 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 27. Premiums Received in Advance

This account represents premiums received in advance by PT Asuransi Sinar Mas, a subsidiary, in relation to insurance policies issued with coverage period of more than one (1) year. Premiums received in advance by type of insurance are as follows:
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Motor Vehicles Fire Enginnering Marine Hull Marine Cargo Health Miscellanous Total 658,387 50,015 728 109 27 32 13,064 722,362 593,458 42,090 203 189 84 10,366 13,718 660,108 December 31, 2009 Rp '000,000 459,738 26,189 358 108 3,492 59,267 12,496 561,648

2010 Rp '000,000 714,536 43,345 346 179 75 32 12,174 770,687

2008 Rp '000,000 349,749 30,573 955 145 29 54,844 19,643 455,938

28. Liability for Future Policy Benefits

a.

Liability for future policy benefits represents the amount set aside to provide the benefits promised to policyholders under the terms of life insurance policies in force, which are stated in the policies and determined in accordance with the actuarial calculation. The details of liability for future policy benefits based on type of coverage are as follows:
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Individual: Combined endowment and Endowment Whole life Non-Traditional Death Subtotal Group: Death Endowment Subtotal Total December 31, 2009 Rp '000,000

b.

2010 Rp '000,000

2008 Rp '000,000

6,191,524 220,675 5,077 368 6,417,644

2,223,306 212,749 4,818 617 2,441,490

2,120,342 216,970 4,988 710 2,343,010

3,062,018 207,429 4,317 520 3,274,284

4,810,992 206,364 3,256 473 5,021,085

151,771 37 151,808 6,569,452

134,729 44 134,773 2,576,263

138,227 43 138,270 2,481,280

98,574 41 98,615 3,372,899

98,357 37 98,394 5,119,479

c.

As of September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008, balance of liability for future policy benefits in foreign currency amounted to US$ 97,998,248 (equivalent to Rp 864,639 million), US$ 58,180,772 (equivalent to Rp 519,205 million), US$ 58,851,009 (equivalent to Rp 529,129 million), US$ 74,270,326 (equivalent to Rp 698,141 million) and US$ 105,935,109 (equivalent to Rp 1,159,989 million) (Note 60). As of September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008, PT Asuransi Jiwa Sinarmass (AJS), a subsidiary, liability for future policy benefits is recorded by AJS based on actuarial calculation of Herman Sulistyo, FSAI. The assumptions used in the computation are as follows:

d.

- 119 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008

For the insurance policies issued since 1994:


Type of Insurance a. Individual: Death Endowment Combined endowment Mortality Table CSO 1958 TMII 1993 CSO 1958 TMI 1993 Reinsurance CSO 1958 TMII 1993 CSO 1980 TMII 1999 CSO 1958 TMII 1993 Reinsurance CSO 1958 Actuarial Interest 4%, 8% 2%, 8% 5% 8% 9% 4%, 5%, 8% 2%, 3%, 4%, 5%, 7%, 8% 7% 8%,5% 9% 4%, 7%, 8% 5%, 8%, 9% 8%, 5% 4%, 8% Method of Reserve Computation Net level Net level Net level Net level Net level Net level Net level Net level Net level Zilmer Net level Net level Zilmer premium premium premium premium premium premium premium premium premium premium premium

W hole life

b. G roup: Death

Net level premium

For the insurance policies issued before 1994:


Type of Insurance a. Individual: Endowment Combined Endowment W hole life b. Group: Death Mortality Table CSO 1958 CSO 1958 CSO 1958 CSO 1958 Actuarial Interest 8% 4%, 6%, 7% 6% 6% Method of Reserve Computation Zilmer Zilmer Zilmer Zilmer

The above liability for future policy benefits are prospective with linear interpolation. e. The changes in liability for future policy benefits are as follows:
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Balance at the beginning of the period Increase (decrease) in liability for future benefits (Note 48) ` Balance at the end of period 2,481,280 4,088,172 6,569,452 3,372,899 (796,636) 2,576,263 December 31, 2009 Rp '000,000 5,119,479 (1,746,580) 3,372,899

2010 Rp '000,000 3,372,899 (891,619) 2,481,280

2008 Rp '000,000 4,674,164 445,315 5,119,479

29. Unearned Premiums and Estimated Own Retention Claims


September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Unearned premiums Estimated own retention claims Total 619,415 271,324 890,739 429,046 210,159 639,205 December 31, 2009 Rp '000,000 357,697 136,909 494,606

2010 Rp '000,000 477,159 197,210 674,369

2008 Rp '000,000 333,980 122,900 456,880

- 120 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 a. Unearned Premiums

Unearned premiums by type of insurance are as follows:


September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Motor Vehicles Health Fire Miscellaneous Marine Cargo Marine Hull Accident Engineering Death Total 300,214 256,735 25,289 21,434 7,502 5,364 1,852 365 660 619,415 228,443 145,015 27,145 14,782 5,955 4,127 1,808 1,287 484 429,046 December 31, 2009 Rp '000,000 203,967 95,532 31,724 14,930 6,658 2,547 1,256 869 214 357,697

2010 Rp '000,000 249,835 180,043 18,169 17,298 5,286 3,661 1,739 743 385 477,159

2008 Rp '000,000 168,781 111,362 26,816 15,105 6,826 2,211 1,286 1,142 451 333,980

The changes in unearned premiums are as follows:


September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Balance at the beginning of the period Increase in unearned premiums (Note 44) Increase in unearned premiums tabarru fund Reclassification to noncurrent assets held for sale (Note 61) Balance at the end of period 477,159 134,685 9,369 (1,798) 619,415 357,697 71,349 429,046 December 31, 2009 Rp '000,000 333,980 23,717 357,697

2010 Rp '000,000 357,697 119,462 477,159

2008 Rp '000,000 249,923 84,057 333,980

Calculation method for Premium Reserve was based on regulation No. 424/KMK.06/2003 Article 28 about Calculation of Unearned Premiums.
b. Estimated Own Retention Claims

of

KMK

The details of estimated own retention claims by type of insurance are as follows:
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Motor Vehicles Fire Health Miscellaneous Marine Cargo Death Engineering Marine Hull Total 119,752 51,107 57,030 17,226 5,478 6,759 3,920 10,052 271,324 93,567 35,297 48,595 15,330 5,182 4,785 3,221 4,182 210,159 December 31, 2009 Rp '000,000 57,040 27,667 20,644 12,981 7,951 4,310 3,208 3,108 136,909

2010 Rp '000,000 67,608 39,594 54,049 15,145 6,581 5,012 3,597 5,624 197,210

2008 Rp '000,000 37,507 19,971 38,608 10,271 7,758 4,121 3,109 1,555 122,900

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008

The changes in estimated own retention claims are as follows:


September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Balance at the beginning of the period Increase in estimated own retention claims (Note 48) Increase in estimated own retention claims tabarru fund Reclassification to noncurrent assets held for sale (Note 61) Balance at the end of period 197,210 72,914 1,294 (94) 271,324 136,909 73,250 210,159 December 31, 2009 Rp '000,000 122,900 14,009 136,909 122,900

2010 Rp '000,000 136,909 60,301 197,210

2008 Rp '000,000 113,390 9,510

Calculation method for Premium Reserve was based on regulation of KMK No. 424/KMK.06 2003 Article 29 about Calculation of Unearned Premiums. As of September 30, 2011 and 2010, December 31, 2010, 2009 and 2008, the balance of unearned premiums and estimated own retention claims to related parties amounted to Rp 182,850 million, Rp 159,302 million, Rp 193,375 million, Rp 116,523 million and Rp 107,561 million, respectively (Note 55). Transactions with related parties were done under similar terms and conditions as those done with third parties. As of September 30, 2011 and 2010, December 31, 2010, 2009, 2008, the balance of unearned premiums and estimated own retention claims denominated in foreign currency amounted to US$ 4,269,010 (equivalent to Rp 37,665 million), US$ 2,363,806 (equivalent to Rp 21,095 million), US$ 4,994,135 (equivalent to Rp 44,902 million), US$ 2,209,052 (equivalent to Rp 20,765 million) and US$ 1,836,131 (equivalent to Rp 21,106 million), respectively (Note 60).
30. Securities Agent Payables
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Payable to customer Payable to PT KPEI Total 86,935 81,223 168,158 575,108 197,115 772,223 2010 Rp '000,000 325,144 90,506 415,650 December 31, 2009 Rp '000,000 78,113 22,972 101,085 2008 Rp '000,000 43,477 20,162 63,639

Payable to customer and PT Kliring Penjaminan Efek Indonesia (KPEI) are liabilities of PT Sinarmas Sekuritas, a subsidiary, in relation with purchase and sale transactions of customers shares and purchase and sale transactions of shares among securities companies.
31. Taxes Payable
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Corporate Income Tax Articles 25 and 29 Income Taxes Article 4 (2) Article 21 Articles 23 and 26 Value Added Tax Total 2010 Rp '000,000 December 31, 2009 Rp '000,000 2008 Rp '000,000

44,977 16,387 4,408 1,850 4,813 72,435

21,074 8,674 2,820 989 2,009 35,566

21,935 13,612 4,073 1,027 767 41,414

18,841 8,670 2,605 587 541 31,244

12,376 10,180 8,285 1,430 219 32,490

- 122 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008

The filing of tax returns is based on the Company and its subsidiaries own calculation of tax liabilities (self-assessment). Based on the third amendment of the General Taxation Provisions and Procedures No. 28 Year 2007, the time limit for the tax authorities to assess or amend taxes was reduced from 10 to 5 years, subject to certain exceptions, since the tax became payable and for year 2007 and prior years, the time limit will end at the latest on fiscal year 2013. As of September 30, 2011 and 2010, and December 31, 2010, 2009 and 2008, balances of taxes payable in foreign currency amounted to US$ 82,011 (equivalent to Rp 721 million), US$ 107,061 (equivalent to Rp 956 million), US$ 90,011 (equivalent to Rp 811 million), US$ 99,645 (equivalent to Rp 936 million) and US$ 113,958 (equivalent to Rp 1,242 million), respectively, (Note 60).

32. Accrued Expenses


September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Interest Others Total 38,759 29,830 68,589 19,338 15,560 34,898 2010 Rp '000,000 26,341 17,527 43,868 December 31, 2009 Rp '000,000 18,308 17,306 35,614 2008 Rp '000,000 21,720 11,580 33,300

Others represent accruals of certain operating expenses. As of September 30, 2011 and 2010, December 31, 2010, 2009 and 2008, the balance of accrued interest to related parties amounted to Rp 7,617 million, Rp 5,339 million, Rp 6,682 million, Rp 3,758 million and Rp 4,199 million, respectively (Note 55). Transactions with related parties were done under similar terms and conditions as those done with third parties. As of September 30, 2011 and 2010, December 31, 2010, 2009 and 2008, the balance accrued expenses denominated in foreign currency amounted to US$ 354,022 (equivalent Rp 3,112 million), US$ 203,094 (equivalent to Rp 1,813 million), US$ 175,916 (equivalent Rp 1,585 million), US$ 138,579 (equivalent to Rp 1,302 million) and US$ 47,916 (equivalent Rp 522 million), respectively (Note 60). of to to to

33. Loans Received

As of September 30, 2011 and 2010, and December 31, 2010, 2009 and 2008, this account represents loans of PT Sinar Mas Multifinance (SMF) and PT AB Sinar Mas Multifinance (ABSM), subsidiaries, which were obtained from:
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Third Parties PT Bank Negara Indonesia (Persero) Tbk (a) PT Bank Pan Indonesia Tbk (b) PT Bank Victoria International Tbk (c) PT Bank Capital Indonesia Tbk (d) PT Bank ICBC Indonesia (e) PT Bank CIMB Niaga Tbk (f) Total December 31, 2009 Rp '000,000

2010 Rp '000,000

2008 Rp '000,000

292,293 248,958 126,092 100,000 69,092 49,956 886,391

181,527 213,721 22,332 19,850 49,750 487,180

172,226 251,698 18,684 19,887 49,770 512,265

257,952 13,542 27,413 50,000 348,907

262,824 34,375 5,606 302,805

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008

a.

On August 9, 2007, SMF obtained a revolving Working Capital Credit facility from PT Bank Negara Indonesia (Persero) Tbk (BNI) with maximum facility of Rp 100,000 million (facility I). The availability of the facility is for 12 months, which will be due on August 8, 2008 and with interest rates ranging from 13.00% to 13.75% per annum. On June 24, 2008, SMF obtained a loan facility from BNI with maximum facility of Rp 250,000 million (facility II) and loan facility arising from non-revolving loan installment. The availability of the facility is for 12 months, which will be due on April 26, 2012. On November 30, 2010, the loan facility was increased to Rp 350,000 million, and with interest rates ranging from 12.75 % to 13.75 % per annum. The facility is fiduciary secured by motor vehicles consumer financing receivables equivalent to a maximum of 115% (for facility I) and 105% (for facility 2) of the total credit facility (Note 7), promissory notes and assigment (with retro cessie) in the form of transfer of motor vehicles consumer financing receivables equivalent to 100% of receivables if the installments are already overdue.

b.

On March 13, 2008, SMF obtained a non-revolving loan facility from PT Bank Pan Indonesia Tbk (Panin) with a maximum facility of Rp 50,000 million. The availability of the facility is for 3 months. Interest rate assigment from the loan is 10.5% per annum for the first year and Certificate of Bank Indonesia interest rate plus 3% per annum for the second year and third year. On March 30, 2010, SMF obtained revolving loan facility from Panin with a maximun facility of Rp 50,000 million (Facility II), The availability of the facility is for 12 months, which will be due on March 30, 2012 and with interest rates is 11.5% per annum. On June 28, 2010, the loan facility II was increased to Rp 250,000 million. The facility is fiduciary secured by consumer financing receivables (Note 7).

c.

In 2008, ABSM obtained a loan facility from PT Bank Victoria International Tbk (Victoria) with maximum facility of Rp 35,000 million. Interest rate on this loan is 13% per annum. This facility is available for 12 months, until July 16, 2012. The facility is fiduciary secured by net investment in finance lease (Note 8). On March 24, 2011, SMF obtained a revolving working capital credit facility from PT Bank Victoria international with maximum facility of Rp 100,000 million. The availibility of the facility is for 12 months, which will be due on March 24, 2012 and with interest rates of 10.25% per annum. The facility is fiduciary secured by consumer financing receivables.

d.

On December 16, 2010, SMF obtained a revolving working capital credit facility from PT Bank Capital Indonesia Tbk (Capital) with maximum facility of Rp 100,000 million. The availability of the facility is for 12 months, which will be due on December 16, 2011 and with interest rates 10.5% per annum. The facility is fiduciary secured by factoring receivable (Notes 9).

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008

e.

In 2010, ABSM obtained a fixed loan facilty - on demand from PT Bank ICBC Indonesia (ICBC) with maximum facitily of Rp 20,000 million. The facility will be available until July 12, 2011 and with interest rate of 11% per annum. The facility is fiduciary secured by factoring receivables (Note 9).

f.

On August 11, 2009, SMF obtained a revolving loan facility from PT Bank CIMB Niaga Tbk (CIMB-Niaga) with a maximum facility of Rp 50,000 million. The availability of the facility is for 1 year, until November 11,2011 and with interest rate of 13.00% per annum. The facility is fiduciary secured by consumer financing receivables (Note 7). The loans obtained by the subsidiares from BNI, CIMB-Niaga, ICBC, Victoria, Capital and Panin include requirements that limit the rights of the subsidiares, among others, to conduct merger, acquisition, reorganization, change of business or change their legal status or liquidate the Company and its subsidiares, file a petition for bankruptcy or delaying payment of their debts, withdraw or reduce the paid up capital and to guarantee or mortgage shares.

34. Convertible Bonds Payable

On July 5, 2005, PT Panji Ratu Jakarta (PRJ), a subsidiary, issued a non-interest bearing convertible bonds to Trade United Investments Limited (British Virgin Island) amounting to Rp 49,366 million which will mature on July 5, 2009. On July 3, 2009, PRJ has extended the convertible bonds up to July 5, 2013. On May 13, 2008, PRJ issued a non-interest bearing convertible bonds amounting to Rp 14,417 million to Great Vanguard International Limited (British Virgin Island), which will be due on May 13, 2013. In June 2010, Great Vanguard International Limited has sold all of convertible bonds to Trade United Investments Limited (British Virgin Island). These bonds can be converted into PRJs shares at any time based on option of the convertible bondholders. The bondholders can transfer, sell or assign the convertible bonds to other parties only upon approval of PRJ. These bonds have no ranking and are not listed in the Indonesia Stock Exchange. In July 2010, all of the convertible bonds have been converted into shares of PRJ by Trade United Investments Limited (British Virgin Island) (Note 17).
35. Other Liabilities
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Related parties (Note 55) Premiums received still in identification process Unearned revenues Others Total December 31, 2009 Rp '000,000

2010 Rp '000,000

2008 Rp '000,000

593 92 730 1,415

2,441 214 195 2,850

342 142 334 818

1,740 101 1,841

266 96 310 672

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Third parties Premiums received still in identification process Immediately payable liabilities Payable to policyholders Policyholders' deposits Deposits payable Unearned revenues Estimated losses on commitments and contigencies Tabarru fund Traveller's checks Payable to contractors Tithe payable Negative goodwill - net (Note 2b) Others Total Total

2010 Rp '000,000

December 31, 2009 Rp '000,000

2008 Rp '000,000

180,837 125,476 46,767 19,288 14,810 13,818 4,160 3,218 886 133 97 149,690 559,180 560,595

141,422 50,974 6,877 44,667 1,482 6,776 6,611 1,635 725 61 131,456 239,396 632,082 634,932

134,609 42,456 71,682 10,247 29,706 8,700 3,537 1,616 133 149 129,802 180,444 613,081 613,899

80,541 62,287 5,499 11,427 21,002 6,958 6,763 2,626 725 73 135,948 52,232 386,081 387,922

196,192 58,837 4,586 40,764 16,942 9,993 2,561 5,431 3,246 25 535 57,574 396,686 397,358

Tabarru fund is the fund establish from contribution, investment income, and accumulated tabarru funds underwriting surplus reserve which is allocated to tabarru fund. As of September 30, 2011 and 2010 and December 31, 2010, others include liability of PT Shinta Utama, a subsidiary, to third party, amounting to Rp 65,592 million, Rp 145,000 million, and Rp 145,000 million, respectively, in connection with the purchase of shares of BRP by PT Shinta Utama. As of December 31, 2009, others include liability of PT Sinar Mas Multifinance, a subsidiary, to third parties amounting to Rp 30,000 million in connection with loan transferred from PT Bank Sinarmas Tbk. The liability has been repaid in January 2010. Transactions with related parties were done under similar terms and conditions as those done with third parties. As of September 30, 2011 and 2010, and December 31, 2010, 2009 and 2008, the balance of other liabilities denominated in foreign currency amounted to US$ 9,657,060 (equivalent to Rp 84,925 million), US$ 5,566,284 (equivalent to Rp 49,677 million), US$ 8,228,015 (equivalent to Rp 74,040 million), US$ 4,841,953 (equivalent to Rp 45,502 million) and US$ 4,477,875 (equivalent to Rp 48,820 million), respectively (Note 60). As of September 30, 2010, December 31, 2010 and 2009, the balance of negative goodwill includes negative goodwill arising from purchase of shares of PT Asuransi Jiwa Sinarmas MSIG (formerly PT Asuransi Jiwa Sinarmas) at nominal price by the Parent Company and PT Shinta Utama, a subsidiary, in 2009 (Note 17).

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 36. Non Controlling Interest in Net Assets and Comprehensive Income (Losses) of the Subsidiaries a.

Noncontrolling Interest in Net Assets of the Subsidiaries


September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 PT Asuransi Jiwa Sinarmas MSIG (formerly PT Asuransi Jiwa Sinarmas) PT Bank Sinarmas Tbk PT Shinta Utama PT Jakarta Teknologi Utama Motor PT Autopro Utama Perkasa PT Panji Ratu Jakarta Total December 31, 2009 Rp '000,000

2010 Rp '000,000

2008 Rp '000,000

4,338,002 502,758 1,501 47 1 4,842,309

47 1 48

200,315 46 1 200,362

46 1 83 130

112,990 37 15 81 113,123

b.

Noncontrolling Interest in Comprehensive Income (losses) of the Subsidiaries


September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 PT Asuransi Jiwa Sinarmas MSIG (formerly PT Asuransi Jiwa Sinarmas) PT Bank Sinarmas Tbk PT Shinta Utama PT Jakarta Teknologi Utama Motor PT Panji Ratu Jakarta Total December 31, 2009 Rp '000,000

2010 Rp '000,000

2008 Rp '000,000

(2,661,999) 346 1 (2,661,652)

(1) (1)

(35,009) (35,009)

34,133 1 2 34,136

26,938 (6) 4 26,936

37. Capital Stock

The share ownership in the Company based on the records of PT Sinartama Gunita, share registrar, a subsidiary, is as follows: By Series of Shares:
September 30,2011 (Unaudited) Nominal Total Number of Value Paid up Shares per Share Capital Stock Rp Rp '000,000 142,474,368 6,081,778,862 6,224,253,230 December 31, 2010 Nominal Number of Value Shares per Share Rp 142,474,368 6,081,318,298 6,223,792,666 5,000 100 5,000 100 712,372 608,178 1,320,550 September 30, 2010 (Unaudited) Nominal Total Number of Value Paid up Shares per Share Capital Stock Rp Rp '000,000 142,474,368 6,070,109,417 6,212,583,785 December 31, 2009 Nominal Number of Value Shares per Share Rp 142,474,368 6,037,783,827 6,180,258,195 5,000 100 5,000 100 712,372 607,011 1,319,383

Shares

Series A Series B Total

2.29 97.71 100.00

2.29 97.71 100.00

Shares

Total Paid up Capital Stock Rp '000,000 712,372 608,132 1,320,504

Total Paid up Capital Stock Rp '000,000 712,372 603,778 1,316,150

Series A Series B Total

2.29 97.71 100.00

2.31 97.69 100.00

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
December 31, 2008 Nominal Number of Value Shares per Share Rp 142,474,368 5,645,191,047 5,787,665,415 5,000 1

Shares

Total Paid up Capital Stock Rp '000,000 712,372 564,519 1,276,891

Series A Series B Total

2.46 97.54 100.00

By Ownership of Interest:
Name of Stockholder JBC International Finance (MAU) Limited Indra Widjaja Kurniawan Udjaja Public (below 5% each) Total September 2011 (Unaudited) % Number of Shares September 2010 (Unaudited) % Number of Shares

52.53 0.21 47.26 100.00

3,269,507,578 13,315,364 2,941,430,288 6,224,253,230

52.63 0.21 0,00 47.16 100.00

3,269,507,578 13,315,364 32,000 2,929,728,843 6,212,583,785

Name of Stockholder JBC International Finance (MAU) Limited Indra Widjaja Kurniawan Udjaja Public (below 5% each) Total

December 31, 2010 % Number of Shares

December 31, 2009 % Number of Shares

55.85 0.02 44.13 100.00

3,475,886,578 1,315,364 2,746,590,724 6,223,792,666

57.07 0.02 0.00 42.91 100.00

3,526,810,828 1,315,364 32,000 2,652,100,003 6,180,258,195

Name of Stockholder JBC International Finance (MAU) Limited Indra Widjaja Kurniawan Udjaja Public (below 5% each) Total

December 31, 2008 % Number of Shares

64.94 0.14 0.00 34.92 100.00

3,758,189,828 8,243,664 32,000 2,021,199,923 5,787,665,415

All capital stock issued by the Company (Series A and Series B shares) are common stock.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008

The changes in capital stock of the Company from January 1, 2008 up to September 30, 2011 are as follows:
Number of Shares Paid-up Capital Stock Rp '000,000 1,180,330 65 43 96,453 1,276,891 883 38,376 1,316,150 160 3,073 1,319,383 1,121 1,320,504 46 1,320,550

Balance as of January 1, 2008 Additional issuance of capital stock from the conversion of series II warrants (Note 43) Additional issuance of capital stock from the conversion of Series III warrants (Note 43) Additional issuance of capital stock from Limited Public Offering IV (Note 43) Balance as of December 31, 2008 Additional issuance of capital stock from the conversion of Series III warrants (Note 43) Additional issuance of capital stock from the conversion of Series IV warrants (Note 43) Balance as of December 31, 2009 Additional issuance of capital stock from the conversion of Series III warrants (Note 43) Additional issuance of capital stock from the conversion of Series IV warrants (Note 43) Balance as of September 30, 2010 Additional issuance of capital stock from the conversion of Series IV warrants (Note 43) Balance as of December 31, 2010 Additional issuance of capital stock from the conversion of Series IV warrants (Note 43) Balance as of September 30, 2011

4,822,055,415 655,569 425,478 964,528,953 5,787,665,415 8,828,686 383,764,094 6,180,258,195 1,600,804 30,724,786 6,212,583,785 11,208,881 6,223,792,666 460,564 6,224,253,230

38. Additional Paid-in Capital - Net

This account consists of additional paid-in capital and equity stock issuance cost, the details are as follows:
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Additional paid-in capital Equity stock issuance cost 808,221 (3,137) 805,084 803,554 (3,137) 800,417 December 31, 2009 Rp '000,000 790,735 (3,137) 787,598

2010 Rp '000,000 808,037 (3,137) 804,900

2008 Rp '000,000 634,316 (3,137) 631,179

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008

Additional paid-in capital consist of:


September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Initial public offering Limited public offering I Limited public offering III Conversion of Series I warrants Conversion of Series III warrants Conversion of Series IV warrants Conversion to capital stock 78,000 165,750 24,783 49,372 396,353 170,463 (76,500) 808,221 78,000 165,750 24,783 49,372 396,353 165,796 (76,500) 803,554 December 31, 2009 Rp '000,000 78,000 165,750 24,783 49,372 395,824 153,506 (76,500) 790,735

2010 Rp '000,000 78,000 165,750 24,783 49,372 396,353 170,279 (76,500) 808,037

2008 Rp '000,000 78,000 165,750 24,783 49,372 392,911 (76,500) 634,316

Equity stock issuance cost incurred on Limited Public Offering II, III and IV, amounted to Rp 904 million, Rp 1,060 million, and Rp 1,173 million, respectively. The changes in additional paid-in capital account from January 1, 2008 up to September 30, 2011 are as follows:
Total Rp '000,000 Balance as of January 1, 2008 Additional paid-in capital from the conversion of Series III warrants (Note 43) Equity stock issuance cost from Limited Public Offering IV (Note 43) Balance as of December 31, 2008 Additional paid-in capital from the conversion of Series III warrants (Note 43) Additional paid-in capital from the conversion of Series IV warrants (Note 43) Balance as of December 31, 2009 Additional paid-in capital from the conversion of Series III warrants (Note 43) Additional paid-in capital from the conversion of Series IV warrants (Note 43) Balance as of September 30, 2010 Additional paid-in capital from the conversion of Series IV warrants (Note 43) Balance as of December 31, 2010 Additional paid-in capital from the conversion of Series IV warrants (Note 43) Balance as of September 30,2011 632,182 170 (1,173) 631,179 2,913 153,506 787,598 529 12,290 800,417 4,483 804,900 184 805,084

39. Other Equity Components

This account represents changes in value of investments of the Parent Company due to changes in equity of the subsidiaries and associated companies which resulted from the change in the Parent Companys ownership interest in PT Asuransi Jiwa Sinarmas MSIG (formerly PT Asuransi Jiwa Sinarmas (AJSM)). PT Bank Sinarmas Tbk (BS), PT Panji Ratu and PT Super Wahana Tehno (2009 and 2008: included PT Certis CISCO), unrealized loss on decrease in value of securities of PT Asuransi Sinar Mas, AJSM and BS and changes in fair values of derivative instruments of PT Oto Multiartha.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Unrealized gain (loss) on increase (decrease) in fair value of available for sale securities (Note 5) Share in translation adjustment of a subsidiary Effects of transactions of subsidiary and associated company with other investors Changes in fair values of derivative instruments and others Total

2010 Rp '000,000

December 31, 2009 Rp '000,000

2008 Rp '000,000

(157,004) (70) 2,868,812 (9,099) 2,702,639

(35,928) 1,800 (9,099) (43,227)

93,723 36,809 (9,099) 121,433

(41,978) 5,141 (9,099) (45,936)

(88,702) 4,200 (9,099) (93,601)

In 2010, in relation to sale of all of investment in shares of PT Certis CISCO (CISCO) by the Parent Company, the changes in ownership interest in CISCO was transferred to Gain on sale of Investment amounting to Rp 2,719 million (Note 17).
40. Difference in Value Arising from Restructuring Transactions Among Entities Under Common Control

In December 2006, the Parent Company increased its investment in PT Asuransi Jiwa Sinarmas MSIG (formerly PT Asuransi Jiwa Sinarmas) (AJSM) amounting to Rp 15,000 million. The increase in investment resulted to an increase in ownership interest of the Parent Company in AJS from 50.00% to 73.08%, since the other stockholders, namely: PT Sinarindo Gerbangmas (SG) and PT Sinar Mas Tunggal (SMT) (both are companies owned by Sinar Mas Group) did not increase their investments. Difference between the transfer price and book value of restructuring transactions among entities under common control amounting to Rp 46,028 million was recorded in the account Difference in Value Arising from Restucturing Transactions Among Entities Under Common Control as part of equity in the consolidated financial statements. In December 2007, the Parent Company increased its investment in AJSM amounting to Rp 20,000 million. The increase in investment resulted to an increase in ownership interest of the Parent Company in AJS from 73.08% to 83.33%, since SG and SMT did not increase their investments. Difference between the transfer price and book value of restructuring transactions among entities under common control amounting to Rp 47,475 million was recorded in the account Difference in Value Arising from Restucturing Transactions Among Entities Under Common Control as part of equity in the consolidated financial statements. In 2011, 2010, 2009 and 2008, the Parent Company increased its investment in PT Jakarta Teknologi Utama Motor (JTUM) amounting to Rp 25,000 million, Rp 15,000 million, Rp 20,000 million and Rp 8,000 million, respectively. The increase in investment resulted to an increase in ownership interest of the Parent Company in JTUM to 99.93 in 2011, 99.90% in 2010, 99.86% in 2009, 99.67% in 2008, since the other stockholders, PT Kalibesar Raya Utama, a company owned by Sinar Mas Group, did not increase its investment. Difference between the transfer price and book value of restructuring transactions among entities under common control amounting to (Rp 1) million, (Rp 1) million, (Rp 7) million and (Rp 10) million, respectively, were recorded in Difference in Value Arising from Restucturing Transactions Among Entities Under Common Control as part of equity in the consolidated financial statements The balance of this account as of September 30, 2011 and 2010, and December 31, 2010, 2009 and 2008 amounted to Rp 93,484 million, Rp 93,485 million, Rp 93,485 million, Rp 93,486 million and Rp 93,493, respectively.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008

41. Dividends

Based on the Extraordinary General Stockholders Meeting dated June 24, 2011, The shareholder approved the distribution of cash dividend for 2010 amounting to Rp 6,224 million or Rp 1 per share. Based on the Extraordinary General Stockholders Meeting dated June 4, 2010, The shareholder approved the distribution of cash dividend for 2009 amounting to Rp 6,182 million or Rp 1 per share.

42. General Reserve

Based on the Extraordinary General Stockholders Meeting dated June 24, 2011, the Company provided general reserve based on the total issued and paid up capital amounting to Rp 264,101 million. Based on the Extraordinary General Stockholders Meeting dated June 4, 2010, the Company provided general reserve based on the total issued and paid up capital amounting to Rp 263,230 million. As of September 30, 2011 and 2010, and December 31, 2010, the balance of general reserve amounted to Rp 527,331 million and Rp 263,230 million, and Rp 263,230 milliion, respectively. This general reserve was provided in relation with the Law of Republic of Indonesia No. 40/2007 dated August 16, 2007 regarding Limited Liability Company, which requires Companies to set up general reserve equivalent to at least 20% of the total issued and paid up capital. There is no timeline over which this amount should be appropriated.

43. Warrants
Exercised up to December 31, 2007 569,287,482 981,852,704 1,551,140,186 Exercised in 2008 655,569 425,478 1,081,047 Exercised in 2009 8,828,686 383,764,094 392,592,780 Exercised in 2010 1,600,804 41,933,667 43,534,471 Exercised in 2011 460,564 460,564 Expired unexcercised warrants 26,832 86,580 113,412 Adjustment in relation to limited public offering IV 72,411 1,468,911 1,541,322

Warrants Series II Series III Series IV Total

Total 569,969,883 992,794,252 426,158,325 1,988,922,460

In July 2003, the Parent Company issued 569,897,472 Series II warrants (detachable warrants) free of charge. These warrants can be exercise during the period from January 23, 2004 to July 23, 2008. Every holder of a Series II warrant has a right to buy one Series B share at an exercise price of Rp 100 per share. In July 2005, the Parent Company issued 991,325,341 Series III warrants (detachable warrants), free of charge. These warrants can be exercised during the period from January 12, 2006 to July 13, 2010. Every holder of a Series III warrant has a right to buy one Series B share at an exercise price of Rp 500 per share. As of June 30, 2008, the price and total of Series II and Series III warrants have been adjusted in relation to Limited Public Offering IV. The new exercise price became Rp 100 and Rp 430, respectively, and the new total warrants became 518,401 warrants and 10,516,070 warrants, respectively.

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008

In July 2008, the Parent Company issued 1,446,793,426 Series IV warrants (detachable warrants), free of charge. These warrants can be exercised during the period from January 6, 2009 up to July 9, 2013. Every holder of a Series IV warrant has a right to buy one Series B share at an exercise price of Rp 500 per share.
44. Insurance Underwriting Income
September 30, (Nine Months) (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Gross premiums Reinsurance premiums Increase in unearned premiums (Note 29) Total 12,800,740 (1,547,725) (134,685) 11,118,330 8,858,454 (1,389,232) (71,349) 7,397,873 December 31, (One Year) 2010 2009 2008 Rp '000,000 Rp '000,000 Rp '000,000 12,573,142 (1,804,894) (119,462) 10,648,786 10,004,878 (1,770,470) (23,717) 8,210,691 8,354,130 (2,305,353) (84,057) 5,964,720

45. Interest Income


September 30, (Nine Months) (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Loans Securities Time deposits Placements with other banks Securities purchased under agreements to resell Mortgage receivables Others Total 748,391 178,962 164,513 8,928 3,560 1,577 385 1,106,316 555,082 136,051 40,779 3,663 1,226 1,930 484 739,215 December 31, (One Year) 2010 2009 2008 Rp '000,000 Rp '000,000 Rp '000,000 784,206 192,202 64,519 4,824 2,141 2,585 1,875 1,052,352 599,294 190,005 61,426 7,443 1,327 2,798 2,205 864,498 453,132 100,016 50,452 10,687 4,855 2,708 3,503 625,353

For the nine month periods ended September 30, 2011 and 2010 and for the years ended December 31, 2010, 2009 and 2008, interest income earned by PT Asuransi Jiwa Sinarmas MSIG (formerly PT Asuransi Jiwa Sinarmas), a subsidiary, from unit link transactions amounted to Rp 38,441 million, Rp 9,579 million, Rp 23,979 million, Rp 1,269 million and Rp 2,832 million, respectively. The interest income earned belong to the customers.
46. Sales

This account represent sales of foreign currencies by PT Simas Money Changer, a subsidiary, and sales by the Parent Company.
47. Other Income
September 30, (Nine Months) (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Dividend income Interest income - current account Charges income Technical assistance income Service center income Printing insurance policy income Investment income of the subsidiaries Others Total 36,097 30,118 21,403 15,128 14,273 7,653 2,358 17,965 144,995 26,293 3,012 14,742 123 9,494 7,071 16,917 77,652 December 31, (One Year) 2010 2009 2008 Rp '000,000 Rp '000,000 Rp '000,000 26,643 3,839 18,519 864 14,228 9,938 971 20,484 95,486 4,914 5,609 1,379 122 14,254 6,354 117 16,600 49,349 17,509 3,504 909 114 10,513 5,063 543 16,186 54,341

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008

Service center income were earned by the Parent Company in 2009 and 2008, and PT Jakarta Teknologi Utama Motor, a subsidiary. Others include service income from Unit Link policyholders, gain on sale of property and equipment (Note 19), and other income.
48. Insurance Underwriting Expenses
September 30, (Nine Months) (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Gross claims Reinsurance claims Increase (decrease) in liability for future policy benefits (Note 28) Increase (decrease) in segregated fund contract liabilities - unit link Commission - net Increase in estimated own retention claims (Note 29) Increase in segregated fund contract liabilities - sharia Amortization of deferred acquisition costs Other underwriting expense Total 8,647,919 (16,477) 4,088,172 (1,951,612) 318,779 72,914 15,736 14,360 11,189,791 9,645 7,823,727 5,602,207 (87,033) (796,636) 2,756,857 252,283 73,250 13,154 December 31, (One Year) 2010 2009 2008 Rp '000,000 Rp '000,000 Rp '000,000 7,999,990 (93,830) (891,619) 3,688,892 351,465 60,301 17,842 3,167 11,136,208 7,718,036 (363,821) (1,746,580) 2,843,626 286,961 14,009 4,906 1,674 8,758,811 5,531,986 (94,554) 445,315 241,316 216,985 9,510 7,313 20,996 2,415 6,381,282

49. Interest Expense


September 30, (Nine Months) (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Time deposits Loans received Savings deposits Current account Premiums on government guarantee Deposits and deposits from other banks Lease payable Securities sold under repurchase agreement Others Total 446,909 83,045 60,612 25,438 19,868 653 4 60 636,589 252,205 40,015 42,892 26,823 12,126 4,672 1,309 59 380,101 December 31, (One Year) 2010 2009 2008 Rp '000,000 Rp '000,000 Rp '000,000 361,781 55,374 59,512 37,330 17,912 4,158 1,741 537,808 354,990 46,296 45,497 30,541 13,815 4,274 1,297 496,710 337,237 26,421 25,858 26,767 10,048 16,854 20 7,181 450,386

Premiums on Government guarantee was paid by PT Bank Sinarmas Tbk, a subsidiary, in relation to Government guarantee on obligations of private banks.
50. General and Administrative Expenses
September 30, (Nine Months) (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 General Electricity, water, and telephone Marketing and advertising Rental Administration Office supplies Defined-benefit post employment expense - net (Note 51) Professional fees Total 76,682 63,907 50,929 35,194 25,322 23,968 12,053 9,034 297,089 61,539 49,406 27,616 29,484 13,721 16,787 12,115 11,221 221,889 December 31, (One Year) 2010 2009 2008 Rp '000,000 Rp '000,000 Rp '000,000 80,327 72,339 47,171 41,566 18,790 25,214 26,811 14,871 327,089 70,416 62,486 35,939 34,784 14,079 18,846 12,635 12,987 262,172 65,254 59,950 39,188 27,989 14,668 16,655 5,765 9,822 239,291

- 134 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 51. Employee Benefits Post-Employment Benefits

The Parent Company and its subsidiaries determine post-employment benefits based on Law No. 13 Year 2003, dated March 25, 2003. No funding of the benefits has been made to date by the Parent Company and its subsidiaries. As of December 31, 2010, 2009 and 2008, the actuarial valuation report on the pension fund and the defined-benefit post employment reserve of the Parent Company and subsidiaries (except PT Asuransi Jiwa Sinarmas) was from PT Rileos Pratama Agnesia, an independent actuary. As of December 31, 2010, 2009 and 2008, the actuarial valuation report on the pension fund and the defined-benefit post employment reserve of PT Asuransi Jiwa Sinarmas MSIG (formerly PT Asuransi Jiwa Sinarmas) (AJSM) was from AJS internal actuary. No actuarial computation has been made on the reporting date considering that there was no change in these data for the nine months period ended September 30, 2011 and 2010. The expense for this period in respect of post employement benefit obligation is for nine months of the expenses calculated for 2011 and 2010 on the basis of the actuarial assumptions as at December 31, 2010 and 2009. Movements of defined-benefit post-employment reserve are as follows:
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Defined-benefit post-employment reserve at beginning of the period Defined-benefit post-employment expense during the period (Note 50) Payments during the period Defined-benefit post-employment reserve at end of the period December 31, 2009 Rp '000,000

2010 Rp '000,000

2008 Rp '000,000

64,447 12,053 (943) 75,557

38,978 12,115 (114) 50,979

38,979 26,811 (1,343) 64,447

27,051 12,635 (707) 38,979

22,013 5,765 (727) 27,051

Principal actuarial assumptions used in the valuation of the defined post-employment benefits are as follows:
September 30, (Unaudited) 2011 2010 Future salary increase Discount rate 2010 December 31, 2009 2008

5.00% - 15.00% 5.00% - 15.00% 5.00% - 15.00% 5.00% - 15.00% 5.00% - 15.00% 5.00% - 13.00% 11.00% - 13.00% 5.00% - 13.00% 11.00% - 13.00% 11.00% - 14.00%

52. Other Expenses


September 30, (Nine Months) (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Repairs and maintenance Training Direct costs of service center Bad debts expense Tithe Others Total 29,829 27,714 9,498 547 31,218 98,806 10,429 57,643 27,356 12,900 6,600 358 December 31, (One Year) 2010 2009 2008 Rp '000,000 Rp '000,000 Rp '000,000 36,620 20,143 8,722 396 127 15,808 81,816 32,599 14,380 10,645 1,317 51 8,561 67,553 23,832 13,875 8,093 333 25 2,624 48,782

Others consist of donation, fine, bad debt expense, allowance for decline in value of foreclosed properties (Note 22), donations and others.

- 135 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 53. Income Taxes

The tax expense of the Company and its subsidiaries consists of the following:
September 30, (Nine Months) (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Current tax expense Parent Company Subsidiaries Subtotal Deferred tax expense (benefit) Parent Company Subsidiaries Subtotal Total December 31, (One Year) 2010 2009 2008 Rp '000,000 Rp '000,000 Rp '000,000

83,043 83,043

47,200 47,200

68,026 68,026

48,124 48,124

34,588 34,588

(13) 6,765 6,752 89,795

(11) 18,240 18,229 65,429

(37) 21,814 21,777 89,803

28 (2,294) (2,266) 45,858

206 23,489 23,695 58,283

Current Tax

A reconciliation between income before tax per consolidated statements of comprehensive income and accumulated fiscal losses is as follows:
September 30, (Nine Months) (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Income before tax per consolidated statements of comprehensive income Deduct: Income of the subsidiaries Income (loss) before tax of the Parent Company Temporary differences: Defined-benefit post-employment expense - net Employee loan Capital lease Depreciation expense Net Permanent differences: Equity in net loss (income) of the associates Gain on sale of investment Gain from investment in units of mutual funds Rent income Interest income General and administrative expenses Other income Depreciation expense Other expenses Net Fiscal loss Accumulated fiscal losses in prior periods Adjustment on fiscal losses based on tax assessment letter year 2008 Adjustment on fiscal losses based on tax assessment letter year 2006 Accumulated fiscal losses December 31, (One Year) 2010 2009 2008 Rp '000,000 Rp '000,000 Rp '000,000

1,607,015 (1,594,482) 12,533

765,660 (730,027) 35,633

1,367,617 (1,330,447) 37,170

779,584 (736,755) 42,829

349,176 (356,845) (7,669)

52 52 -

45 45

69 81

38 37 75 -

(171) (121) 38 (254)

150

(5,308) (14,564) (750) (33) 2,946 3,554 (14,155) (1,570) (18,620) (20,190)

(23,113) (12,718) (1,436) (3,107) (26) 2,925 7 (37,468) (1,790) (14,714) 8 (16,496)

(28,388) (12,718) (1,791) (4,143) (15) 1,437 3,926 458 (41,234) (3,914) (14,714) 8 (18,620)

(41,920) (3,487) (4,143) (65) 60 89 3,899 660 (44,907) (2,003) (12,711) (14,714)

6,879 (885) (250) (29) (965) 4,750 (3,173) (9,766) 228 (12,711)

The Parent Company is in fiscal loss position, thus, no provision for current corporate income tax was made. According to tax regulation, fiscal losses can be carried forward and applied against the taxable income immediately within five (5) years after such fiscal losses were incurred.

- 136 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008

Based on Tax Assessment Letter No: 00162/406/06/054/08 dated June 26, 2008, the Parent Companys fiscal loss for year 2006 have been adjusted from Rp 1,408 million to Rp 1,180 million.
Deferred Tax
Credited (charged in) consolidated September 30, statement of 2010 comprehensive income (Unaudited) Rp '000,000 Rp '000,000 Credited (charged in) consolidated September 30, statement of 2011 comprehensive income (Unaudited) Rp '000,000 Rp '000,000

January 1, 2010 Rp '000,000 Deferred Tax Assets - Net Deferred tax assets (liabilities): Fiscal losses Defined-benefit postemployment reserve Depreciation expense Employee loans Total - Parent Company Subsidiaries Total Deferred Tax Liabilities - Net Subsidiary (33,466)

January 1, 2011 Rp '000,000

1,006 42 5 1,053 15,758 16,811

11 11 (9,840) (9,829) -

1,006 53 5 1,064 5,918 6,982

1,006 59 5 20 1,090 2,470 3,560

13 13 1,349 1,362

1,006 72 5 20 1,103 3,819 4,922

(8,400)

(41,866)

(41,992)

(8,114)

(50,106)

Credited Credited Credited (charged in) (charged in) (charged in) consolidated consolidated consolidated January 1, statement of December 31, statement of December 31, statement of December 31, 2009 comprehensive income 2010 2008 comprehensive income 2008 comprehensive income Rp '000,000 Rp '000,000 Rp '000,000 Rp '000,000 Rp '000,000 Rp '000,000 Rp '000,000 Deferred Tax Assets - Net Deferred tax assets (liabilities): Fiscal losses Defined-benefit postemployment reserve Depreciation expense Employee loans Total - Parent Company Subsidiaries Total Deferred Tax Liabilities - Net Subsidiary (4,292) (19,040) (23,332) (10,134) (33,466) (8,526) (41,992)

1,207 91 39 (50) 1,287 7,779 9,066

(201) (59) 4 50 (206) (4,449) (4,655)

1,006 32 43 1,081 3,330 4,411

10 (38) (28) 12,428 12,400 -

1,006 42 5 1,053 15,758 16,811

17 20 37 (13,288) (13,251)

1,006 59 5 20 1,090 2,470 3,560

In September 2008, Law No. 7 Year 1983 regarding Income Tax has been revised with Law No. 36 Year 2008. The revised Law stipulates changes in corporate income tax rates from progressive tax rates to a flat rate of 28% for fiscal year 2009 and 25% for fiscal year 2010 onwards. The Company and its subsidiaries have recorded the impact of the changes in tax rates in the calculation of the deferred tax assets (liabilities) as of December 31, 2009 and 2008 and recorded it as part of tax expense in the 2009 and 2008 consolidated statements of comprehensive income. The management of the Parent Company estimated that fiscal losses that can be realized in future periods amounted to Rp 4,025 million, hence, the related deferred tax asset recognized on the unused fiscal losses amounted to Rp 1,006 million. As of September 30, 2011 and 2010, December 31, 2010, 2009, and 2008, the unrecognized deferred tax asset on unused fiscal losses amounted to Rp 4,041 million, Rp 3,118 million, Rp 3,649 million, Rp 2,672 milion and Rp 2,172 milion, respectively.

- 137 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008

Management believes that deferred tax assets on temporary differences can be realized in the future. A reconciliation between the total tax expense and the amounts computed by applying the effective tax rate to income before tax per consolidated statements of comprehensive income is as follows:
September 30, (Nine Months) (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Income before tax per consolidated statements of comprehensive income Deduct: Income of the subsidiaries Income before tax of the Parent Company Tax expense (benefit) at effective tax rates Tax effects of permanent differences: Equity in net income of the associates Gain on sale of investment Gain from investment in units of mutual funds Rent income Interest income General and administrative expenses Other income Depreciation expense Other expenses Net Subtotal Unrecognized deferred tax asset on fiscal losses Adjustment on deferred tax Effect of changes in tax rates Tax expense (benefit) of the Parent Company Tax expense of the subsidiaries Total December 31, (One Year) 2010 2009 2008 Rp '000,000 Rp '000,000 Rp '000,000

1,607,015 (1,594,482) 12,533 3,133

765,660 (730,027) 35,633 8,908

1,367,617 (1,330,447) 37,170 9,292

779,584 (736,755) 42,829 11,992

349,176 (356,845) (7,669) (2,301)

(1,327) (3,641) (188) (8) 736 889 (3,539) (406) 393 (13) 89,808 89,795 -

(5,778) (3,179) (359) (777) (7)

731 2 (9,367) (459) 448

(7,097) (3,179) (448) (1,035) (4) 359 982 115 (10,307) (1,015) 978 -

(11,737) (977) (1,160) (19) 17 25 1,092 185 (12,574) (582) 561 47 2 28 45,830 45,858

2,064 (266) (75) (9) (289) 1,425 (876) 952 130 206 58,077 58,283

(11) 65,440 65,429

(37) 89,840 89,803

54. Earnings Per Share Net Income


September 30, (Nine Months) (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Net income for computation of basic earnings per share and diluted earnings per share December 31, (One Year) 2010 2009 2008 Rp '000,000 Rp '000,000 Rp '000,000

1,382,490

700,232

1,277,814

700,098

263,554

Number of Shares
September 30, (Nine Months) (Unaudited) 2011 2010 Weighted average number of ordinary shares for computation of basic earnings per share Weighted average number of potentially dilutive ordinary shares: Series III and IV warrants Weighted average number of ordinary shares for computation of diluted earnings per share 2010 December 31, (One Year) 2009 2008

6,224,025,276

6,184,792,517

6,191,883,748

6,135,052,001

5,678,501,947

604,140,852

621,539,670

564,417,029

540,108,321

10,267,397

6,828,166,128

6,806,332,187

6,756,300,777

6,675,160,322

5,688,769,344

- 138 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 55. Nature of Relationship and Transactions with Related Parties Nature of Relationship

The companies under the Sinar Mas Group which have the same stockholders and management with the Company, direct or indirectly, are recognized as related parties.
Transactions with Related Parties

In the normal course of business, the Company and its subsidiaries entered into certain transactions with related parties. a. Significant balances with related parties in the consolidated statements of financial position as of consolidated statement of financial position dates are as follows:
September 30, (Unaudited) 2011 2010 Percentage to Percentage to Total Assets/ Total Assets/ Total Liabilities Total Liabilities Rp '000,000 % Rp '000,000 % ASSETS Cash and cash equivalents Bank International Ningbo, China Short-term investments Securities Units of mutual fund Fixed income Danamas Stabil Simas Danamas Mantap Plus Simas Danamas Instrumen Negara Money market Danamas Rupiah Plus Riau Liquid Fund Danamas Rupiah Mixed Danamas Fleksi Simas Satu Shares Simas Danamas Saham Others Sinar Prima Reksa Sinar Dana Tumbuh Total - units of mutual fund Shares PT Dian Swastatika Sentosa Tbk PT Pabrik Kertas Tjiwi Kimia Tbk PT Indah Kiat Pulp & Paper Tbk PT Sinar Mas Multiartha Tbk PT Bumi Serpong Damai Tbk Others Total - shares Warrants PT Sinar Mas Multiartha Tbk Total

847

0.00

171,742

0.01

648,299 25,733 392 15,844 3,050 4,390 697,708 2,442 1,701 1,440 2 27 5,612 2,821 706,141

0.02 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

34,437 23,341 28,363 372 27,339 23,614 13,744 63,046 47,021 30,465 240,851 532,593 1,520 1,358 3,720 1 95 2 6,696 638 539,927

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01

- 139 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
September 30, (Unaudited) 2011 2010 Percentage to Percentage to Total Assets/ Total Assets/ Total Liabilities Total Liabilities Rp '000,000 % Rp '000,000 % ASSETS Cash and cash equivalents Bank International Ningbo, China Net investments in finance lease PT Graha Dinamika Sejahtera PT Citra Cemerlang PT Buana Mas Intitrans PT Ciptatrans Abadi PT Citrabuana Transabadi PT Sinar Asia Fortuna PT Dutabangun Transabadi PT Wira Karya Sakti PT Persada Bangun Sentosa PT Jakarta Sinar Intertrade PT Gaya Sukses Kaseindo PT Arara Abadi PT Acacia Andalan Utama PT Bina Sinar Amity PT Trasindo Makmur PT Rolimex Kimia Nusamas PT Sinar Kencana Intermuda Others (below 1 billion each) Total Factoring receivables PT Cakrawala Mega Indah Jimmy Widjaja PT Rolimex Kimia Nusamas The Service Line Others (below 1 billion each) Total Segregated funds net assets - unit link Unit mutual fund Bonds Total Premium and reinsurance receivables PT Kali Besar Raya Utama PT Arara Abadi PT Oto Multiartha PT Simas Reinsurance Broker PT Finnantara In Tiga Others (below 1 billion each) Total Loans

847

0.00

171,742

0.01

50,054 26,615 15,099 13,573 8,680 7,439 6,577 4,193 3,262 1,502 1,113 319 161 57 952 139,596

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

52,240 38,447 26,178 20,906 16,225 4,941 10,056 8,853 4,816 2,560 1,417 1,083 1,231 572 180 80 1,475 191,260

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

79,119 31,101 6,176 116,396

0.00 0.00 0.00 0.00

32,461 10,356 6,247 6,001 55,065

0.00 0.00 0.00 0.00 0.00

32,524 3,000 35,524

0.00 0.00 0.00

53,671 3,000 56,671

0.00 0.00 0.00

95,686 5,386 4,689 690 276 3,354 110,081

0.00 0.00 0.00 0.00 0.00 0.00 0.00

34,251 1,222 12,260 3,175 1,063 6,494 58,465

0.00 0.00 0.00 0.00 0.00 0.00 0.00

- 140 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
September 30, (Unaudited) 2011 2010 Percentage to Percentage to Total Assets/ Total Assets/ Total Liabilities Total Liabilities Rp '000,000 % Rp '000,000 % ASSETS Loans PT Lontar Papyrus Pulp & Paper Industry PT Sinar Wisata Lestari PT Sinar Wisata Permai PT Putra Alvita Pratama PT Maritim Sinar Utama Kenny Santoso PT Sinar Mas Wisesa Paramitra Intimega Others (below 1 billion each) Total Other accounts receivable Mortgage payable Loans to associates PT JobStreet Indonesia Other Total Other assets LIABILITIES Deposits and deposits from other banks Securities sold under agreements to repurchase Account payables Reinsurance payables PT Simas Reinsurance Broker PT Kali Besar Raya Utama PT LG Insurance Indonesia Total Commission payable Insurance claim payable Premium payable Total Unearned premium and estimated own retention claims Accrued expenses Other liabilities 4,738,105 37,223 0.16 0.00 3,666,619 30,541 0.18 0.00

1,299,024 60,000 36,985 29,991 4,822 3,241 1,940 1,436,003

0.03 0.00 0.00 0.00 0.00 0.00 0.00 0.03

648,888 68,500 37,000 30,000 1,844 71,000 1,083 858,315

0.03 0.00 0.00 0.00 0.00 0.00 0.00 0.03

2,154 353 1,845 4,352 7,731

0.00 0.00 0.00 0.00 0.00

2,395 357 2,511 5,263 5,952

0.00 0.00 0.00 0.00 0.00

17,879 305 16 18,200 9,257 430 310 28,197

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

4,646 1,136 723 6,505 7,312 1,459 324 15,600

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

182,850 7,617 1,415

0.01 0.00 0.00

159,302 5,339 2,850

0.01 0.00 0.00

- 141 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
December 31, 2009 Percentage to Total Assets/ Total Liabilities Rp '000,000 %

2010 Percentage to Total Assets/ Total Liabilities Rp '000,000 % ASSETS Cash and cash equivalents Bank International Ningbo, China Short-term investments Securities Unit mutual fund Fixed income Simas Danamas Instrumen Negara Simas Danamas Mantap Plus Danamas Stabil Danamas Dollar Money market Riau Liquid Fund Danamas Rupiah Danamas Rupiah Plus Mixed Simas Satu Danamas Fleksi Shares Simas Danamas Saham Others Sinar Dana Tumbuh Sinar Prima Reksa Sinar Dolar Prima Sinar Dana Super Sinar Century Total - unit mutual fund Shares PT Dian Swastatika Sentosa Tbk PT Indah Kiat Pulp & Paper Tbk PT Pabrik Kertas Tjiwi Kimia Tbk PT Bumi Serpong Damai Tbk PT Sinar Mas Multiartha Tbk Others Total - shares Warrants PT Sinar Mas Multiartha Tbk PT Bank Sinarmas Tbk PT Pabrik Kertas Tjiwi Kimia Tbk Total Consumer financing receivables Key employees Net investments in finance lease PT Graha Dinamika Sejahtera PT Citra Cemerlang PT Buana Mas Intitrans PT Ciptatrans Abadi PT Citrabuana Transabadi PT Dutabangun Transabadi PT Wira Karya Sakti PT Persada Bangun Sentosa PT Sinar Asia Fortuna PT Gaya Sukses Kaseindo PT Arara Abadi PT Bina Sinar Amity PT Acacia Andalan Utama PT Certis CISCO PT Rolimex Kimia Nusamas PT Sinar Kencana Intermuda Others (below 1 billion each) Total 277 -

2008 Percentage to Total Assets/ Total Liabilities Rp '000,000 %

435

0.00

636

0.00

28,893 24,183 9,078 27,600 23,847 377 65,584 13,961 59,429 251,169 20,389 524,510 3,610 2,624 2,551 143 1 3 8,932 1,008 30 1,038 534,480 48,024 35,489 23,082 19,057 16,033 9,234 7,689 4,441 3,811 2,115 1,067 903 1,854 172,799

0.10 0.09 0.03 0.10 0.09 0.00 0.24 0.05 0.21 0.90 0.07 1.88 0.01 0.01 0.01 0.00 0.00 0.00 0.03 0.00 0.00 0.00 1.91 0.00 0.17 0.13 0.08 0.07 0.06 0.03 0.03 0.02 0.01 0.01 0.00 0.00 0.00 0.00 0.01 0.62

26,827 24,524 42,534 11,685 357 51,428 15,059 33,463 195,009 34,496 435,382 1,344 181 19,227 4,037 1 24,790 638 1 639 460,811 337 19,943 4,414 26,524 6,787 7,326 3,293 12,364 2,873 8,765 3,562 2,658 2,414 1,574 3,535 578 521 3,323 110,454

0.14 0.12 0.22 0.06 0.00 0.26 0.08 0.17 0.99 0.18 2.22 0.00 0.00 0.10 0.02 0.00 0.12 0.00 0.00 0.00 0.00 2.34 0.00 0.10 0.02 0.13 0.03 0.04 0.02 0.06 0.01 0.04 0.02 0.01 0.01 0.01 0.02 0.00 0.00 0.02 0.54

20,881 37,886 3,656 251 11,149 14 1,703 10,198 7,024 5,650 120,783 529,623 283,079 159,730 7,446 1,199,073 2,075 683 72 2,830 90 1 91 1,201,994 318 12,721 2,182 5,923 5,381 11,604 4,499 1,325 3,742 3,768 1,480 1,588 1,030 2,630 57,873 -

0.14 0.24 0.02 0.00 0.07 0.00 0.01 0.07 0.07 0.04 0.78 3.41 1.82 1.03 0.04 7.74

0.01 0.00 0.00 0.01 0.00 0.00 0.00 7.75 0.00

0.08 0.01 0.04 0.04 0.08 0.03 0.01 0.02 0.02 0.01 0.01 0.01 0.01 0.37

- 142 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
December 31, 2009 Percentage to Total Assets/ Total Liabilities Rp '000,000 %

2010 Percentage to Total Assets/ Total Liabilities Rp '000,000 % ASSETS Factoring receivables PT Cakrawala Mega Indah Jimmy Widjaja PT Rolimex Kimia Nusamas PT Shield On Service The Service Line Others (below 1 billion each) Total Segregated funds net assets - unit link Bonds Units of mutual fund Total Premium and reinsurance receivables PT Kali Besar Raya Utama PT Oto Multiartha PT Indah Kiat Pulp & Paper Tbk PT Cakrawala Mega Indah PT Sebangun Bumi Andalas Group Pulp & Paper PT Arara Abadi PT Sinar Oleochemical International PT Ekamas Fortuna SMART Corporate PT Lontar Papyrus Pulp & Paper Industry PT Certis CISCO PT Wirya Karya Sakti Others (below 1 billion each) Total Loans PT Lontar Papyrus Pulp & Paper Industry PT Sinar Wisata Lestari PT Sinar Wisata Permai PT Putra Alvita Pratama PT Maritim Sinar Utama PT Sinar Mas Wisesa Paramitra Intimega KUD Gajah Mada Others (below 1 billion each) Total Other accounts receivable Loans to an associate PT JobStreet Indonesia Mortgage payable Others Total Other assets

2008 Percentage to Total Assets/ Total Liabilities Rp '000,000 %

34,002 25,362 6,294 65,658

0.12 0.09 0.02 0.00 0.00 0.00 0.23

3,705 172 6,580 8,520 1,869 298 21,144

0.02 0.00 0.03 0.04 0.01 0.00 0.10

5,475 15,858 841 22,174

0.03 0.10 0.00 0.13

3,000 53,320 56,320

0.01 0.19 0.20

3,000 1,071,053 1,074,053

0.02 5.44 5.46

3,000 303,122 306,122

0.02 1.95 1.97

16,013 14,005 2,872 1,920 1,845 1,378 992 202 4,865 44,092

0.06 0.05 0.01 0.01 0.01 0.00 0.00 0.00 0.00 0.00 0.02 0.16

90,543 33,265 3,417 2,992 1,136 8,507 1,224 1,082 1,043 305 1 7,745 151,260

0.46 0.17 0.02 0.02 0.01 0.00 0.04 0.01 0.01 0.01 0.00 0.00 0.04 0.79

67,223 1,289 4,053 2,285 2,213 7,861 1,076 9,514 1,760 5,813 6,900 109,987

0.43 0.01 0.03 0.01 0.01 0.05 0.01 0.06 0.01 0.04 0.05 0.71

653,602 61,211 36,842 29,782 4,234 9,269 794,940

2.35 0.22 0.13 0.11 0.02 3.00 5.83

677,793 31,500 2,000 30,000 602 741,895

3.44 0.16 0.01 0.15 0.00 3.76

30,000 29,000 15,000 6,531 2,877 83,408

0.19 0.19 0.10 0.04 0.02 0.54

360 2,465 3,409 6,234 9,622

0.00 0.01 0.01 0.02 0.03

376 3,087 1,992 5,455 11,912

0.00 0.02 0.01 0.03 0.06

438 1,790 2,008 4,236 46,496

0.00 0.01 0.01 0.02 0.30

- 143 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
December 31, 2009 Percentage to Total Assets/ Total Liabilities Rp '000,000 %

2010 Percentage to Total Assets/ Total Liabilities Rp '000,000 % LIABILITIES Deposits and deposits from other banks Securities sold under agreements to repurchase Accounts payable Reinsurance payables PT Simas Reinsurance Broker PT Kali Besar Raya Utama PT LG Insurance Indonesia Total Commissions payable Insurance claims payable Premiums payable Total Unearned premium and estimated own retention claims Accrued expenses Other liabilities 3,875,577 32,069 13.92 0.12

2008 Percentage to Total Assets/ Total Liabilities Rp '000,000 %

2,619,510 26,327

16.28 0.16

1,193,326 -

9.34

6,214 953 14 7,181 3,216 1,868 181 12,446 193,375 6,682 818

0.02 0.00 0.00 0.02 0.01 0.01 0.00 0.04 0.69 0.02 0.00

668 3,488 148 4,304 2,153 2,247 8,704 116,523 3,758 1,841

0.00 0.02 0.00 0.02 0.01 0.01 0.00 0.04 0.72 0.02 0.01

182 2,078 70 2,330 4,912 1,772 9,014 107,561 4,199 672

0.00 0.02 0.00 0.02 0.04 0.01 0.07 0.84 0.03 0.01

b.

As of September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008, the Parent Company and its subsidiaries invested their funds amounting to Rp 697,708 million, Rp 532,593 million, Rp 524,510 million, Rp 435,382 million and Rp 1,199,073 million, respectively, in units of mutual funds which were managed by PT Sinarmas Sekuritas (a subsidiary) as investment manager (Note 5). The Company and its subsidiaries insured their property and equipment and assets for lease with PT Asuransi Sinar Mas (ASM) (Notes 19 and 21). For the nine month periods ended September 30, 2011 and 2010, and for the years ended December 31, 2010, 2009 and 2008 the consolidated consumer financing income from related parties amounted to Rp nil, Rp 2 million, Rp 2 million, Rp 23 million and Rp 27 million, or nil, 0.00%, 0.00%, 0.02% and 0.03%, respectively, of the total consolidated consumer financing income. For the nine month periods ended September 30, 2011 and 2010, and for the years ended December 31, 2010, 2009 and 2008, the consolidated factoring income from related parties amounted to Rp 7,154 million, Rp 5.651 million, Rp 10,655 million, Rp 9,845 million and Rp 14,187 million, or 20.86%, 44.72%, 36.33%, 21.39% and 49.09%, respectively, of the total consolidated factoring income. For the nine month periods ended September 30, 2011 and 2010, and for the years ended December 31 2010, 2009 and 2008, the consolidated finance lease income from related parties amounted to Rp 17,643 million, Rp 14,491 million, Rp 22,761 million, Rp 16,341 million and Rp 6,061 million, or 95.26%, 82.6%, 81.86%, 69.83% and 46.92%, respectively, of the total consolidated finance lease income. PT Sinar Mas Multifinance (SMF), a subsidiary, has entered into a Joint Financing Agreement by Transferring Receivables Portfolio and Appointment as Security Agent and Chanelling Credit Transfer Agreement with PT Bank Sinarmas (BS) (Note 7.f).

c. d.

e.

f.

g.

- 144 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008

h.

Since September 2006, ABSM entered into certain lease agreements (operating lease) with BS on motor vehicles and office equipment owned by ABSM with lease periods ranging from four (4) up to eight (8) years until 2014 (Note 21). On October 22, 2007, SMF entered into operating lease agreement with BS on SMFs automatic teller machine (ATM) (Note 21). The operating lease agreement is valid from November 22, 2007 to January 20, 2012. The Company entered into long term room lease agreement with PT Asuransi Sinar Mas, a subsidiary (Note 21) As of September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008, the total balance of commitments and contingent transactions (L/C and bank guarantees) with related parties amounted to Rp 45,240 million, Rp 31,093 million, Rp 37,614 million, Rp 16,326 million and Rp 7,166 million (Note 58), respectively. The Company and its subsidiaries provide compensation to the key management personnel as follows:
September 30, (Nine Months) (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Short-term benefits Post-employment benefits Termination benefits Total 96,783 39,028 27,713 163,524 70,530 27,718 19,095 117,343 December 31, (One Year) 2010 2009 2008 Rp '000,000 Rp '000,000 Rp '000,000 94,195 31,101 19,894 145,190 75,983 25,819 16,479 118,281 64,423 19,639 12,476 96,538

i.

j. k.

l.

m.

Transactions with related parties are done under the same terms and conditions as done with third parties, except loans and mortgage receivables from employees and loans which are secured by cash guarantee and are done with different terms and conditions (Note 13.h and 16).

There are no transactions with related parties that directly or indirectly related with main business of the company and its subsidiares and identified as conflict of interest based on BAPEPAM-LK No. IX. E. 1 Conflict of Interest.

56. Fair Value of Financial Assets and Financial Liabilities

Fair value is defined as the amount at which the financial instruments could be exchanged in a current transaction between knowledgeable, willing parties in an arms length transaction, other than in a forced sale or liquidation. Fair values are obtained from quoted prices, discounted cash flows model, as appropriate. The following table sets forth the carrying amounts and estimated fair values of the Company and its subsidiaries financial assets and liabilities:

- 145 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
September 30, 2011 (Unaudited) Estimated Fair Values Carrying value Rp '000,000 Rp '000,000 Financial Assets At fair value through profit and loss Short term investment - securities - shares and warrants Short term investment - securities - bonds Short term investment - securities - units of mutual fund Segregated funds net assets unit link - shares Segregated funds net assets unit link - units of mutual fund Segregated funds net assets sharia - shares Segregated funds net assets sharia - units of mutual fund Held to maturity Short term investment - securities - bonds Short term investment - securities - credit link note Short term investment - securities - Bank Indonesia Intervention Short term investment - securities - Certificate of Bank Indonesia Short term investment - securities - export bill receivable Segregated funds net assets unit link - bonds Segregated funds net assets sharia - bonds Available for sale Short term investment - securities - shares Short term investment - securities - bonds Loans and receivables Cash and cash equivalents Securities purchased under agreements to resell Short term investment - securities - placement with other banks Short term investment - securities - time deposits Consumer financing receivables - net Net investments in finance lease - net Factoring receivables - net Segregated funds net assets unit link - time deposits Segregated funds net assets unit link - cash in banks Segregated funds net assets unit link - investment receivables Segregated funds net assets unit link - other receivables Segregated funds net assets sharia - time deposits Segregated funds net assets sharia - cash in banks Segregated funds net assets sharia - investment receivables Securities agent receivables Other accounts receivable - net Loans - net Investment in shares of stock Other assets Total financial assets Financial Liabilities Deposits and deposits from other banks Securities sold under agreements to repurchase Accounts payable Securities agent payables Loans received Accrued expenses Other liabilities Total financial liabilities

1,545,596 83,115 8,277,938 33,649 5,150,493 7,782 41,678

1,545,596 83,115 8,277,938 33,649 5,150,493 7,782 41,678

1,258,162 43,950 1,974,079 26,299 501,303 47,174 21,602

1,491,928 43,950 1,974,079 26,299 501,303 52,293 22,757

908,990 31,338

908,990 31,338

8,383,778 77,931 421,961 19,136 580,709 140,496 344,251 102 36,190 2,407 150 6,600 17,143 396 336,676 851,384 9,066,488 244,230 12,248 40,495,424

8,383,778 113,449 421,961 19,136 580,709 140,496 344,251 102 36,190 2,407 150 6,600 17,143 396 336,676 851,384 9,066,488 244,230 12,248 40,770,982

13,405,000 37,223 2,086 168,158 886,391 68,589 357,780 14,925,227

13,405,000 70,934 2,086 168,158 886,391 68,589 357,780 14,958,938

- 146 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
September 30, 2010 (Unaudited) Estimated Fair Carrying value Values Rp '000,000 Rp '000,000 Financial Assets At fair value through profit and loss Short term investment - securities - shares and warrants Short term investment - securities - bonds Short term investment - securities - units of mutual fund Segregated funds net assets unit link - shares Segregated funds net assets unit link - bonds Segregated funds net assets unit link - units of mutual fund Segregated funds net assets sharia - units of mutual fund Held to maturity Short term investment - securities - bonds Short term investment - securities - credit link note Short term investment - securities - Bank Indonesia Intervention Short term investment - securities - export bill receivable Segregated funds net assets unit link - bonds Segregated funds net assets sharia - bonds Available for sale Short term investment - securities - shares Short term investment - securities - bonds Loans and receivables Cash and cash equivalents Securities purchased under agreements to resell Short term investment - securities - placement with other banks Short term investment - securities - time deposits Consumer financing receivables - net Net investments in finance lease - net Factoring receivables - net Segregated funds net assets unit link - time deposits Segregated funds net assets unit link - cash in banks Segregated funds net assets unit link - investment receivables Segregated funds net assets sharia - cash in banks Segregated funds net assets sharia - investment receivables Securities agent receivables Other accounts receivable - net Loans - net Investment in shares of stock Other assets Total financial assets Financial Liabilities Deposits and deposits from other banks Securities sold under agreements to repurchase Accounts payable Securities agent payables Loans received Accrued expenses Other liabilities Total financial liabilities

633,506 62,984 3,270,851 35,569 66,997 5,258,150 28,180 1,324,862 62,475 124,374 21,789 43,692 21,443 944,849 15,905 2,818,992 30,562 379,864 17,586 354,775 172,375 129,296 240,000 25,054 2,523 13,655 298 380,597 401,936 6,062,636 337,182 11,185 23,294,142 8,373,538 30,541 1,359 772,223 487,180 34,898 345,950 10,045,689

633,506 62,984 3,270,851 35,569 66,997 5,258,150 28,180 1,545,824 62,475 124,374 21,789 52,295 23,885 944,849 15,905 2,818,992 59,734 379,864 17,586 354,775 172,375 129,296 240,000 25,054 2,523 13,655 298 380,597 401,936 6,062,636 337,182 11,185 23,555,321 8,373,538 59,734 1,359 772,223 487,180 34,898 345,950 10,074,882

- 147 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
December 31, 2010 Estimated Fair Carrying value Values Rp '000,000 Rp '000,000 Financial Assets At fair value through profit and loss Short term investment - securities - shares and warrants Short term investment - securities - bonds Short term investment - securities - units of mutual fund Segregated funds net assets unit link - shares Segregated funds net assets unit link - units of mutual fund Segregated funds net assets sharia - units of mutual fund Held to maturity Short term investment - securities - bonds Short term investment - securities - credit link note Short term investment - securities - Bank Indonesia Intervention Short term investment - securities - export bill receivable Segregated funds net assets unit link - bonds Segregated funds net assets sharia - bonds Available for sale Short term investment - securities - shares Short term investment - securities - bonds Loans and receivables Cash and cash equivalents Securities purchased under agreements to resell Short term investment - securities - placement with other banks Short term investment - securities - time deposits Consumer financing receivables - net Net investments in finance lease - net Factoring receivables - net Segregated funds net assets unit link - time deposits Segregated funds net assets unit link - cash in banks Segregated funds net assets unit link - investment receivables Segregated funds net assets sharia - time deposits Segregated funds net assets sharia - cash in banks Segregated funds net assets sharia - investment receivables Securities agent receivables Other accounts receivable - net Loans - net Investment in shares of stock Other assets Total financial assets Financial Liabilities Deposits and deposits from other banks Securities sold under agreements to repurchase Accounts payable Securities agent payables Loans received Accrued expenses Other liabilities Total financial liabilities

1,033,109 72,397 3,128,024 36,072 5,929,443 40,413 1,287,659 63,070 171,273 322,030 44,471 21,591 1,190,672 36,493 1,980,945 107,141 706,189 33,543 376,961 163,869 187,558 984,135 35,927 2,271 3,000 4,599 504 165,481 542,356 6,934,157 337,182 22,496 25,965,031

1,033,109 72,397 3,128,024 36,072 5,929,443 40,413 1,468,652 63,070 171,273 322,030 48,349 23,591 1,190,672 36,493 1,980,945 107,141 706,189 33,543 376,961 163,869 187,558 984,135 35,927 2,271 3,000 4,599 504 165,481 542,356 6,989,076 337,182 22,496 26,206,821

9,604,110 32,069 2,115 415,650 512,265 43,868 336,618 10,946,695

9,604,110 32,069 2,115 415,650 512,265 43,868 336,618 10,946,695

- 148 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008

Fair value of short term investments in securities, segregated funds net assets - unit link, and segregated funds net assets sharia (shares and warrant that are traded in Indonesia Stock Exhange, and bonds) based on market price, fair value of short term investment securities, segregated funds net assets - unit link, and segregated funds net assets sharia (unit mutual fund) were based on net asset value published. Fair value of loans, consumer financing receivables, finance lease, factoring receivables, and other receivables are determined based on discounted cash flow analysis using market interest rate. There is no reliable basis for measuring the fair value of investment in shares (Note 2.h and 17), thus, the investments in shares are stated at cost. Deposits and deposits from other banks have a demand feature, thus, the fair value is not less than the amount payable on demand discounted from the first date that the amount could be required to be paid which is equal to the carrying amount. The fair value of loan received is determined based on discounted cash flow analysis using market interest rates. Fair value of cash and cash equivalents, short term investment in time deposits, placements with other banks, Bank Indonesia intervention, export bill receivable, securities purchased under agreements to resell, securities agent receivables, segregated funds net assets unit link (cash in banks, time deposits, investment receivable and other receivable), segregated funds net assets sharia (cash in banks, time deposits and investment receivable), other assets (security deposits and money transfer), accounts payable, securities sold under agreement to repurchase, securities agent payables, accrued expenses, and other liabilities approximates the carrying value due to short term nature of transactions.

57. Agreements and Engagements

On June 6, 2008, the Parent Company entered into room leasing agreement with PT Asuransi th th Sinar Mas (ASM) relating to lease of 7 and 8 floor at office building of Plaza Simas which is located at Jl. Fachrudin No. 20, Central Jakarta. The lease term is for 15 years, starting from October 1, 2008 up to October 1, 2023 (Note 55). PT Asuransi Jiwa Sinarmas (AJS) entered into cooperation agreements, where AJS was appointed as insurance agent with third parties. The third parties are PT Bank Commonwealth, PT Bank Mayapada Tbk, PT Bank Permata Tbk, PT Bank Muamalat Indonesia, PT Bank OCBC NISP Tbk, PT Bank Nusantara Parahyangan Tbk, PT Bank Windu Kentjana International Tbk, PT Bank BCA Syariah, PT Bank Sinarmas Tbk, PT Bank Kesawan Tbk, PT Bank Syariah Mandiri, PT Bank UOB Buana Tbk, PT Bank Mega Tbk, PT ICB Bumiputera Indonesia Tbk, PT Bank International Indonesia Tbk, PT Bank Mutiara Tbk, PT Bank Victoria International Tbk, Bank of China Limited and some Bank Perkreditan Rakyat.

- 149 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 58. Commitments and Contingencies

a.

PT Bank Sinarmas (BS), a subsidiary, has commitments on purchases of foreign currency (Spot and Forward) which have not yet been realized as of September 30, 2011 and 2010 and December 31, 2010 and 2009, amounting to Rp 12,306 million and Rp 14,069 million and Rp 28,697 million and Rp 27,030 million, respectively, while commitments on sales of foreign currency (Spot) which have not yet realized as of September 30, 2011 and 2010 and December 31, 2010 and 2009, amounting to Rp 52,740 million and Rp 14,076 million and Rp 14,512 million and Rp 14,513 million, respectively. As of December 31, 2008 there are no commitments on sale and purchases and sales of foreign currency. BS has commitments and contingent receivables and liabilities under export-import, guarantees and loans given to the customers as follows:
September 30, (Nine Months) (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Commitments Commitment Liabilities Unused loan commitments granted to customers Irrevocable Letters of Credit Total December 31, (One Year) 2010 2009 2008 Rp '000,000 Rp '000,000 Rp '000,000

b.

111,971 19,951 131,922

95,628 28,804 124,432

115,266 37,254 152,520

445,336 16,402 461,738

67,382 9,860 77,242

September 30, (Nine Months) (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Contingencies Contingent receivables Past due interest revenues Contingent liabilities Bank guarantees issued Net

December 31, (One Year) 2010 2009 2008 Rp '000,000 Rp '000,000 Rp '000,000

17,635

12,710

11,874

6,786

19,941

347,964 (330,329)

288,275 (275,565)

317,066 (305,192)

276,333 (269,547)

188,683 (168,742)

As of September 30, 2011 and 2010, December 31, 2010, 2009 and 2008, the total commitments and contingent transactions (which consist of letters of credit and bank guarantees) with related parties amounted to Rp 45,240 million, Rp 31,093 million, Rp 37,614 million, Rp 16,326 million and Rp 7,166 million, respectively (Note 55). As of September 30, 2011, December 31, 2010, 2009 and 2008, the term of letters of credit is 1 up to 2 months, 1 up to 4 month and 1up to 5 month, respectively, while for bank guarantees is 1 month up to 36 months

- 150 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 59. Segment Information a. Business Segment

September 30, 2011 (Unaudited)


Consumer financing, Parent Company Rp '000,000 Operating income Interest income Gain (loss) from investments in units of mutual funds Gain on sale of short-term investments - net Sales Adminis tration fee and commissions Equity in net income of associates - net Gain on foreign exchange - net Others Total operating income Operating expenses Salaries and employee benefits General and administrative Interest expense Depreciation and amortization Cost of Goods Sold Provision for possible losses on earning and non-earning assets Provision for doubtful accounts Other financial charges Mudharabah for participants Unrealized loss (gain) on decrease (increase) in fair value of securities Equity in net loss of associates - net Loss on foreign exchange - net Others Total operating expenses Income (loss) from operations - net Tax expense Net income (loss) 18 3,600 12,434 1,382,477 13 1,382,490 29,122 39,611 11,506,060 1,398,197 (31,961) 1,366,236 (8,202) 687 17,023 272,217 58,920 (15,384) 43,536 74 1,862 1,219 (50) 1,169 73 1,348 216,335 53,896 (14,050) 39,846 156,134 (1,382) 26,951 901,872 101,653 (28,259) 73,394 5 12,178 139,917 (12,985) (104) (13,089) 146,550 29,905 100,785 13,050,697 2,983,377 (89,795) 2,893,582 (17,300) (1,979) (72,765) (1,376,362) (1,376,362) 146,550 12,605 98,806 12,977,932 1,607,015 (89,795) 1,517,220 (1,232) 13,186 5,665 20,132 30 20,132 11,954 5,665 30 (4,985) 20,132 11,954 680 30 3,019 2,700 1,376,254 1,608 1,394,911 607 2,490 2,485 588,433 9,550 84,437 12,904,257 11,189,791 132,998 101,916 22,056 94,172 2 5,531 331,137 95,562 47,010 62,665 30,419 120 1,345 323 163 3,081 31,705 270,231 14,038 24,344 16,133 60 4,205 141,445 86,488 7,745 3,801 1,003,525 111,497 152,230 572,131 20,283 5,417 3 37,590 126,932 16,212 6,840 20,381 1,852 82,449 2,716 82,607 732,594 85,092 180,660 1,381,671 17,300 164,835 16,034,074 11,203,829 382,565 326,942 655,237 81,954 85,149 (11,681) (1,376,363) (17,300) (19,840) (1,449,127) (29,853) (18,648) 732,594 85,092 168,979 5,308 144,995 14,584,947 11,203,829 382,565 297,089 636,589 81,954 85,149 14,564 895,865 871 (482) 1,213 912,031 912,031 Insurance underwriting Rp '000,000 11,111,634 214,338 finance lease and factoring Rp '000,000 231,427 5 Shares adminis tration fee Rp '000,000 2,047 Stock brokerage, underwriting and investment management Rp '000,000 91,314 6,249 Banking Rp '000,000 902,775 Development, trading and services Rp '000,000 102 Total before elimination Rp '000,000 11,436,422 1,123,469 Elimination Rp '000,000 (6,790) (17,153) Total after elimination Rp '000,000 11,429,632 1,106,316

Segment assets Investments in associates Noncurrent held for sale Unallocated assets Total assets Segment liabilities Liabilities directly related with noncurrent assets classified as held for sale Unallocated liabilities Total liabilities

878,577 8,112,426 5,912 8,996,915 16,961 183 17,144

23,922,245 86,016 104,485 3,934 24,116,680 14,028,559 8,221 63,210 14,099,990

1,606,167 17 5,810 1,611,994 931,289 5,497 936,786 -

18,944 301

1,022,907 14,787 26 1,037,720 227,313 -

15,668,058 20 15,668,078 14,374,884 -

122,293 143,388 3,777 269,458 71,190 1,613 72,803

43,239,191 8,356,935 104,485 19,630 51,720,241 29,651,258 8,221 122,541 29,782,020

(725,449) (8,014,605) (8,740,054) (792,295) (792,295)

42,513,742 342,330 104,485 19,630 42,980,187 28,858,963 8,221 122,541 28,989,725

151 19,396 1,062

17 1,079

15,667 242,980

36,354 14,411,238

- 151 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008

September 30, 2010 (Unaudited)


Consumer Parent Company Rp '000,000 Operating income Interest income Gain from investments in units of mutual funds Gain on sale of short-term investments - net Sales Adminis tration fee and commissions Equity in net income of associates - net Gain on foreign exchange - net Unrealized gain on increase in fair value of securities Gain on sale of investment Others Total operating income Operating expenses Salaries and employee benefits General and administrative Interest expense Depreciation and amortization Cost of Goods Sold Provision for possible losses on earning and non-earning assets Provision for doubtful accounts Other financial charges Mudharabah for participants Loss on foreign exchange - net Others Total operating expenses Income from operations - net Tax expense Net income 1,436 370 691,156 12,718 3,703 709,383 619 1,467 2,928 506 204 3,437 9,161 700,222 11 700,233 922,720 84,332 4,933 (3,065) 43,873 35,698 8,563,990 7,823,727 101,063 83,328 18,019 (193) 56,949 15,005 8,097,898 466,092 (24,736) 441,356 828 4,753 161,432 28,798 (9,348) 19,450 10,906 11,803 57,715 31 4,358 190,230 48,233 24,728 40,014 20,167 32 1,634 1,517 (99) 1,418 1,240 237 125 2,091 56,212 136,110 (11,566) 124,544 12 3,151 801 26,540 43,583 1,418 9,472 22,962 192,322 12,329 23,211 15,893 60 2,628 714 725,337 80,090 107,756 350,830 16,462 50,308 23,417 628,863 96,474 (19,643) 76,831 466 77,053 1,648 819 205 19,795 7,480 13,762 41,539 2,710 2,504 605 19,766 1 8,908 34,494 7,045 (48) 6,997 951,702 128,381 20,165 139,701 698,636 32 54,164 12,718 81,209 10,425,952 7,836,056 257,166 235,913 390,904 60,934 20,272 50,308 10,906 11,803 (193) 57,982 57,643 8,989,694 1,436,258 (65,429) 1,370,829 (32,520) (675,523) (32) (3,557) (711,511) (14,024) (10,803) (4,924) (11,130) (32) (40,913) (670,598) (670,598) 951,702 128,381 20,165 107,181 23,113 54,164 12,718 77,652 9,714,441 7,836,056 257,166 221,889 380,101 56,010 20,272 50,308 10,906 673 (193) 57,950 57,643 8,948,781 765,660 (65,429) 700,231 Insurance underwriting Rp '000,000 7,376,482 99,017 financing, finance lease and factoring Rp '000,000 128,126 Shares administration fee Rp '000,000 2,338 Stock brokerage, underwriting and investment management Rp '000,000 82,730 5,617 Development, trading and services Rp '000,000 297 Total before elimination Rp '000,000 7,589,676 749,568 Total after elimination Rp '000,000 7,600,150 739,215

Banking Rp '000,000 644,637

Elimination Rp '000,000 10,474 (10,353)

Segment assets Investments in associates Unallocated assets Total assets Segment liabilities Unallocated liabilities Total liabilities

306,606 4,014,367 6,461 4,327,434 14,509 125 14,634

12,747,490 16,117 12,763,607 10,586,184 37,400 10,623,584 -

973,197 10,145 983,342 537,027 1,989 539,016

17,329 288 17,617 897 35 932

1,461,395 42 1,461,437 812,681 8,155 820,836

10,073,618 3,608 10,077,226 9,396,620 28,922 9,425,542

262,656 2,375 265,031 147,028 807 147,835

25,842,291 4,030,484 22,919 29,895,694 21,494,946 77,433 21,572,379

(994,117) (3,815,067) (4,809,184) (798,717) (798,717)

24,848,174 215,417 22,919 25,086,510 20,696,229 77,433 20,773,662

- 152 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008

December 31, 2010


Parent Company Rp '000,000 Operating income Gain on investment in units of mutual fund Interest income Gain on sale of shrot term investment - net Gain on foreign exhanges - net Unrealized gain on incerase in fair value of securities Equity in net income of associates - net Administration fee and commissions Sales Gain on sale of investment in shares Others Total operating income Operating expense Interest expense Salaries and employee benefit General and administrative Depreciation and amortization Gain on foreign exhanges - net Provision for impairment losses Provision for impairment losses on earning and nonearning assets Other financial charges Mudharabah in participant Cost of good sold Others Total operating expense Income from operations - net Tax expense Net income 1,791 1,268,995 1,137 12,718 5,566 1,290,207 81 772 2,274 3,953 30 1,231 4,090 12,431 1,277,776 37 1,277,813 Insurance underwriting Rp '000,000 10,624,252 1,210,212 149,911 252,473 (46,874) 82,591 42,431 12,314,996 11,136,208 129,811 129,570 24,939 8,347 4,926 213 21,971 11,455,985 859,011 (18,030) 840,981 Consumer financing, finance lease, and fectoring Rp '000,000 241,070 186 26 51,918 8,000 301,200 55,647 68,616 39,441 29,318 743 13,817 17,293 7,369 232,244 68,956 (19,168) 49,788 Share administration fee Rp '000,000 3,241 1,083 175 4,499 1,629 337 182 253 69 2,470 2,029 (150) 1,879 Stock brokerage, underwriting and investment management Rp '000,000 105,543 33,732 8,614 51,213 284 101,795 26,758 327,939 18,866 78 27,772 22,767 3,959 2,336 75,778 252,161 (13,325) 238,836 Development, trading, and service Rp '000,000 284 568 1 9,913 46,107 21,412 78,285 3,241 3,636 873 45,966 13,877 67,593 10,692 (26) 10,666 Total before elimination Rp '000,000 10,974,106 1,247,102 1,066,813 313,592 (44,206) 184,881 1,278,908 121,716 47,244 12,718 105,806 15,308,680 11,155,074 553,458 335,746 348,642 85,327 9,120 16,613 44,934 17,293 213 47,197 83,493 12,697,110 2,611,570 (89,803) 2,521,767 Total after elimination Rp '000,000 10,984,542 1,247,102 1,052,352 313,592 184,881 28,388 83,380 47,244 12,718 95,486 14,049,685 11,155,074 537,808 335,746 327,089 78,761 53,327 16,613 44,934 3,490 213 47,197 81,816 12,682,068 1,367,617 (89,803) 1,277,814

Banking Rp '000,000 907,534 9,906 2,357 495 69,798 1,464 991,554 497,652 103,905 150,617 22,103 (2,383) 44,934 33,781 850,609 140,945 (39,141) 101,804

Elimination Rp '000,000 10,436 (14,461) 44,206 (1,250,520) (38,336) (10,320) (1,258,995) (15,650) (21,553) (6,566) 44,207 (13,803) (1,677) (15,042) (1,243,953) (1,243,953)

Segment assets Investments in associates Unallocated assets Total assets Segmen liabilities Unallocated liabilities Total liabilities

255,468 4,815,811 5,900 5,077,179 14,072 15 14,087

14,195,331 17,088 14,212,419 11,510,617 31,024 11,541,641

1,069,446 2,573 1,072,019 558,264 2,086 560,350

18,158 221 18,379 1,128 104 1,232

1,220,593 38 1,220,631 454,898 10,837 465,735

11,232,179 11,232,179 10,281,461 39,224 10,320,685

291,273 3,429 294,702 152,711 115 152,826

28,282,448 4,832,899 12,161 33,127,508 22,973,151 83,405 23,056,556

(671,248) (4,611,236) (5,282,484) (472,540) (472,540)

27,611,200 221,663 12,161 27,845,024 22,500,611 83,405 22,584,016

- 153 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008

December 31, 2009


Parent Company Rp '000,000 Operating income Interest income Gain from investments in units of mutual funds Gain on sale of short-term investments - net Sales Administration fee and commissions Equity in net income of associates - net Gain on foreign exchange - net Unrealized gain on increase in fair value of securities Others Total operating income Operating expenses Salaries and employee benefits General and administrative Interest expense Depreciation and amortization Cost of Goods Sold Provision for possible losses on earning and non-earning assets Provision for doubtful accounts Other financial charges Mudharabah for participants Loss on foreign exchange - net Others Total operating expenses Income from operations - net Tax expense Net income 33 3,487 286 699,217 4,838 707,861 798 820 3,964 257 845 1,050 7,734 700,127 (28) 700,099 Insurance underwriting Rp '000,000 8,188,171 143,199 1,170,537 (17,797) 5,350 85,962 19,886 9,595,308 8,758,811 111,306 107,847 25,824 249 199,116 20,682 9,223,835 371,473 4,797 376,270 1,236 3,398 146,421 87,025 (25,049) 61,976 Consumer financing, finance lease and factoring Rp '000,000 199,239 2 30,900 26 3,279 233,446 34,593 21,983 46,268 23,203 8,618 7,122 1,464 300 201 22 51 2,038 1,204 (36) 1,168 7,381 2,090 66,104 201,325 (3,434) 197,891 293 3,242 Shares administration fee Rp '000,000 2,014 935 Stock brokerage, underwriting and investment management Rp '000,000 57,892 8,771 20,685 68,890 102,852 8,339 267,429 6,191 26,961 20,753 30 2,698 Development, trading and services Rp '000,000 746 247 154,203 4,749 16,629 176,574 3,079 1,615 486 153,890 3 10,735 169,808 6,766 (77) 6,689 Total before elimination Rp '000,000 8,447,316 883,977 1,195,893 51,607 154,489 137,006 703,966 15,104 189,909 54,136 11,833,403 8,765,002 250,735 276,352 516,654 75,123 154,147 64,527 8,640 7,122 249 208,581 67,553 10,394,685 1,438,718 (45,858) 1,392,860 Total after elimination Rp '000,000 8,459,978 864,498 1,195,893 51,607 154,489 108,842 41,920 189,909 49,349 11,116,485 8,765,002 250,735 262,172 496,710 72,210 154,147 64,527 8,640 1,479 249 193,477 67,553 10,336,901 779,584 (45,858) 733,726

Banking Rp '000,000 731,228 514 106,106 9,728 1,095 872 849,543 72,534 123,034 470,356 18,747 64,527 29,547 778,745 70,798 (22,031) 48,767

Elimination Rp '000,000 12,662 (19,479) (28,164) (662,046) (15,104) (4,787) (716,918) (14,180) (19,944) (2,913) (5,643) (15,104) (57,784) (659,134) (659,134)

Segment assets Investments in associates Unallocated assets Total assets Segment liabilities Unallocated liabilities Total liabilities

238,343 3,368,324 6,410 3,613,077 15,625 61 15,686

9,927,986 16,117 15,528 9,959,631 8,238,891 25,141 8,264,032

836,218 2,931 839,149 408,742 7,689 416,431

15,961 294 16,255 930 59 989

659,237 659,237 140,719 2,462 143,181

8,036,015 8,036,015 7,435,493 29,093 7,464,586

176,723 473 177,196 64,980 205 65,185

19,890,483 3,384,441 25,636 23,300,560 16,305,380 64,710 16,370,090

(399,318) (3,200,905) (3,600,223) (267,274) (267,274)

19,491,165 183,536 25,636 19,700,337 16,038,106 64,710 16,102,816

- 154 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008

December 31, 2008


Consumer financing, finance lease and factoring Rp '000,000 151,693 106 26,826 3,461 182,086 30,890 18,362 25,713 21,554 9,978 9,353 309 103,023 397 17,677 6,730,926 257,225 (17,534) 239,691 (1,171) 3,159 117,838 64,248 (21,379) 42,869 38 4,083 1,342 406 199 17 79 2,043 2,040 (416) 1,624 72,766 3,315 164,776 13,068 (11,952) 1,116 15,457 628,153 19,642 (6,790) 12,852 Stock brokerage, underwriting and investment management Rp '000,000 126,013 9,093 (7,780) 42,970 712 6,836 177,844 44,015 21,159 20,746 533 2,242 Development, trading and services Rp '000,000 179 164 273 80,567 9,269 2,761 647,795 59,532 103,174 425,759 13,558 10,580 93 36,958 2,009 3 13,276 52,589 2,922 1,747 538 36,898 8,517 50,622 1,967 (6) 1,961 Total before elimination Rp '000,000 6,228,319 626,891 722,014 53,249 37,256 107,393 266,559 222,547 54,867 8,319,095 6,425,297 220,975 248,000 452,200 59,280 37,169 10,580 9,995 9,353 309 175,882 (675) 48,782 7,697,147 621,948 (58,283) 563,665 Total after elimination Rp '000,000 6,219,860 625,353 722,014 53,249 37,256 100,064 223,222 54,341 8,035,359 6,425,297 220,975 239,291 450,386 59,826 37,169 10,580 9,995 2,024 309 175,882 5,667 48,782 7,686,183 349,176 (58,283) 290,893

Parent Company Rp '000,000 Operating income Interest income Gain from investments in units of mutual funds Gain on sale of short-term investments - net Sales Administration fee and commissions Equity in net income of associates - net Gain on foreign exchange - net Other income Total operating income Operating expenses Salaries and employee benefits General and administrative Interest expense Depreciation and amortization Cost of Goods Sold Provision for possible losses on earning and non-earning assets Provision for doubtful accounts Other financial charges Mudharabah for participants Unrealized loss on decrease in fair value of securities Equity in net loss of associates - net Loss on foreign exchange - net Other expenses Total operating expenses Income before tax Tax expense Net income 197 885 298 264,550 617 266,547 803 741 195 102 271 99 578 2,789 263,806 (206) 263,600

Insurance underwriting Rp '000,000 5,947,306 62,497 727,901 10,006 212,563 27,878 6,988,151 6,381,282 104,327 102,824 21,087 -

Shares administration fee Rp '000,000 3,307 738

Banking Rp '000,000 554,925 -

Elimination Rp '000,000 (8,459) (1,538) (7,329) (266,559) 675 (526) (283,736) (8,709) (1,814) 546 (7,329) 5,667 675 (10,964) (272,772) (272,772)

Segment assets Investments in associates Unallocated aset Total assets Segment liabilities Unallocated liabilities Total liabilities

237,684 2,430,699 4,683 2,673,066 19,007 102 19,109

8,357,519 15,999 3,774 8,377,292 7,078,230 21,966 7,100,196

765,697 3,277 768,974 396,526 11,707 408,233

15,479 87 15,566 1,153 314 1,467

389,193 110 389,303 68,940 2,199 71,139

6,064,627 6,064,627 5,627,588 19,374 5,646,962

148,491 181 148,672 65,835 160 65,995

15,978,690 2,446,698 12,112 18,437,500 13,257,279 55,822 13,313,101

(594,138) (2,306,141) (2,900,279) (542,960) (542,960)

15,384,552 140,557 12,112 15,537,221 12,714,319 55,822 12,770,141

b.

Geographical Segment
Consumer financing, finance lease and factoring Rp '000,000 172,838 39,475 8,367 10,747 231,427 September 30, 2011 (9 months) (Unaudited) Stock brokerage, underwriting Development, Shares and investment trading and administration fee management Banking services Elimination Rp '000,000 Rp '000,000 Rp '000,000 Rp '000,000 Rp '000,000 2,047 2,047 91,314 91,314 (6,790) (6,790)

Geographical market

Insurance underwriting Rp '000,000 10,700,034 162,909 153,394 92,254 3,043 11,111,634

Total Rp '000,000 10,959,443 202,384 161,761 103,001 3,043 11,429,632

Java and Bali Sumatera Kalimantan Sulawesi Irian Total

Geographical market

Insurance underwriting Rp '000,000 7,022,101 189,318 92,717 69,781 2,565 7,376,482

Consumer financing, finance lease and factoring Rp '000,000 104,692 17,036 2,595 3,803 128,126

September 30, 2010 (9 months) (Unaudited) Stock brokerage, underwriting Development, Shares and investment trading and administration fee management Banking services Elimination Rp '000,000 Rp '000,000 Rp '000,000 Rp '000,000 Rp '000,000 2,338 2,338 82,730 82,730 10,474 10,474

Total Rp '000,000 7,222,335 206,354 95,312 73,584 2,565 7,600,150

Java and Bali Sumatera Kalimantan Sulawesi Irian Total

- 155 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
December 31, 2010 (One Year) Stock brokerage, underwriting Development, Shares and investment trading and administration fee management Banking services Elimination Rp '000,000 Rp '000,000 Rp '000,000 Rp '000,000 Rp '000,000 3,241 3,241 105,543 105,543 10,436 10,436

Geographical market

Insurance underwriting Rp '000,000 10,266,088 173,501 104,313 76,912 3,438 10,624,252

Consumer financing, finance lease and factoring Rp '000,000 200,487 29,688 4,539 6,356 241,070

Total Rp '000,000 10,585,795 203,189 108,852 83,268 3,438 10,984,542

Java and Bali Sumatera Kalimantan Sulawesi Irian Total

Geographical market

Insurance underwriting Rp '000,000 7,825,874 190,484 83,160 85,690 2,963 8,188,171

Consumer financing, finance lease and factoring Rp '000,000 178,051 17,753 2,851 584 199,239

December 31, 2009 (One Year) Stock brokerage, underwriting Development, Shares and investment trading and administration fee management Banking services Elimination Rp '000,000 Rp '000,000 Rp '000,000 Rp '000,000 Rp '000,000 2,014 2,014 57,892 57,892 12,662 12,662

Total Rp '000,000 8,076,493 208,237 86,011 86,274 2,963 8,459,978

Java and Bali Sumatera Kalimantan Sulawesi Irian Total

Geographical market

Insurance underwriting Rp '000,000 5,464,879 279,024 108,986 91,201 3,216 5,947,306

Consumer financing, finance lease and factoring Rp '000,000 136,715 13,141 1,837 151,693

December 31, 2008 (One Year) Stock brokerage, underwriting Development, Shares and investment trading and administration fee management Banking services Elimination Rp '000,000 Rp '000,000 Rp '000,000 Rp '000,000 Rp '000,000 3,307 3,307 126,013 126,013 (8,459) (8,459)

Total Rp '000,000 5,722,455 292,165 110,823 91,201 3,216 6,219,860

Java and Bali Sumatera Kalimantan Sulawesi Irian Total

Geographical market

Carrying value of consolidated segment assets * September 30, September 30, 2011 2010 (Unaudited) % (Unaudited) Rp '000,000 Rp '000,000

Additions to consolidated property and equipment investment properties, and property under build, operate and transfer agreement September 30, September 30, 2011 2010 (Unaudited) % (Unaudited) % Rp '000,000 Rp '000,000

Indonesia Java and Bali Sumatera Kalimantan Sulawesi Irian Democratic Republic Timor Leste Total Investment in associates Noncurrent assets held for sale

39,505,332 1,526,396 313,391 1,034,348 129,666 4,609 42,513,742 342,330 104,485

93.0 3.6 0.7 2.4 0.3 0.0 100.0 -

22,717,540 910,065 207,514 923,900 89,155 24,848,174 215,417 -

91.5 3.6 0.8 3.7 0.4 100.0 -

238,192 37,816 9,157 4,526 33 289,724

82.2 13.1 3.2 1.5 0.0 100.0

80,720 26,541 1,154 1,734 186 110,335

72.1 25.0 1.1 1.6 0.2 100.0

- 156 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
Carrying value of consolidated segment assets * December 31, December 31, % 2009 % 2008 Rp '000,000 Rp '000,000 92.2 4.5 1.2 1.7 0.4 100.0 17,945,157 702,216 123,248 642,585 77,959 19,491,165 183,536 92.1 3.6 0.6 3.3 0.4 100.0 13,982,941 866,295 204,241 224,677 106,398 15,384,552 140,557

Geographical market

December 31, 2010 Rp '000,000 25,466,381 1,230,332 341,713 479,029 93,745 27,611,200 221,663

Java and Bali Sumatera Kalimantan Sulawesi Irian Total Investment in associates

90.9 5.6 1.3 1.5 0.7 100.0 -

Geographical market

Additions to consolidated property and equipment, investment properties and property under build, operate and transfer agreement December 31, December 31, December 31, 2010 % 2009 % 2008 % Rp '000,000 Rp '000,000 Rp '000,000 148,650 40,331 4,588 2,249 202 196,020 72.7 23.3 2.6 1.3 0.1 100.0 153,818 15,244 1,700 6,126 73 176,961 85.1 9.8 1.1 4.0 0.0 100.0 201,117 21,211 2,328 1,871 266 226,793 85.4 12.1 1.3 1.1 0.1 100.0

Java and Bali Sumatera Kalimantan Sulawesi Irian Total

60. Capital Management and Financial Risk Management Objective and Policies Capital Management

The primary objective of the Company and its subsidiaries capital management is to ensure that it maintains healthy capital ratios in order to support its business and maximize shareholder value as well as maintain an optimal capital structure to reduce the cost of capital. The Company and its subsidiaries manage their capital structure and makes adjustment in light of changes in economic conditions. The Company and its subsidiaries monitor their capital using debt to equity ratio, by dividing net debt to capital. The Company and its subsidiaries capital structure consists of equity attributable to owners of the parent entity (consisting of capital stock, Paid in Capital, retained earnings and other components of equity) and loans received reduced by cash and cash equivalents.

- 157 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008

The ratio of loans and debt to equity at September 30, 2011 and 2010 and December 31, 2010, 2009, and 2008 is as follows:
September 30, 2011 (Unaudited) Rp '000,000 Total loans received Cash and cash equivalents Total - net Equity attributable to the owners of the parent entity The ratio of net loans and debt to equity 886,391 8,383,778 7,497,387 September 30, 2010 (Unaudited) Rp '000,000 487,180 2,818,992 2,331,812 2010 Rp '000,000 512,265 1,980,945 1,468,680 December 31, 2009 Rp '000,000 348,907 1,755,113 1,406,206 2008 Rp '000,000 302,805 825,610 522,805

9,148,153 81.96%

4,312,800 54.07%

5,060,646 29.02%

3,597,391 39.09%

2,653,957 19.70%

Financial Risk Management Objectives and Policies

The main risks arising from the Company and its subsidiaries financial instruments are interest rate risk, foreign exchange risk, credit risk and liquidity risk. The operational activities of the Company and its subsidiaries are managed in a prudential manner by managing those risks to minimize potential losses. In practice, implementation of risk management of the Company and its subsidiaries include active supervision of management, implementation of policies and procedures, risk limits, the process of identification, measurement and monitoring of risk, implementation of information systems and risk management and internal control systems.
Credit Risk

Credit risk is the risk that the Company and its subsidiaries will incur a loss arising from the customers or counterparties which fail to fulfill their contractual obligations. Management believes that there are no significant concentrations of credit risk. The Company and its subsidiaries manage and control the credit risk by dealing only with recognized and credit worthy parties, setting internal policies on verifications and authorizations of credit, and regularly monitoring the collectibility of receivables to reduce the exposure to bad debts.

- 158 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008

The table below shows consolidated statement of financial position exposures related to credit risk:
September 30, 2011 (Unaudited) Gross amount Net amount Rp '000,000 Rp '000,000 At fair value through profit and loss Short term investment - securities - shares and warrants Short term investment - securities - bonds Short term investment - securities - units of mutual fund Segregated funds net assets unit link - shares Segregated funds net assets unit link - units of mutual fund Segregated funds net assets sharia - units of mutual fund Segregated funds net assets sharia - shares Held to maturity Short term investment - securities - bonds Short term investment - securities - credit link note Short term investment - securities - export bill receivables Segregated funds net assets unit link - bonds Segregated funds net assets sharia - bonds Available for sale Short term investment - securities - shares Loans and receivables Cash and cash equivalents Securities purchased under agreements to resell Short term investment - placement with other banks Short term investment - time deposits Net investment in finance lease Consumer financing receivables Factoring receivables Segregated funds net assets unit link - time deposits Segregated funds net assets unit link - cash in banks Segregated funds net assets unit link - investment receivables Segregated funds net assets unit link - other receivables Segregated funds net assets sharia - time deposits Segregated funds net assets sharia - cash in banks Segregated funds net assets sharia - investment receivables Securities agent receivables Other accounts receivable - net Loans - net Investment in shares of stock Other assets Total financial assets 1,545,596 57,110 8,277,938 33,649 5,150,493 41,678 7,782 1,545,596 57,110 8,277,938 33,649 5,150,493 41,678 7,782

161,989 43,950 501,303 36,759 14,032

161,969 43,950 501,303 36,759 14,032

908,990

908,990

6,440,229 77,931 442,061 19,136 143,093 582,235 349,410 102 36,190 2,407 150 6,600 17,143 396 336,676 851,893 9,163,715 244,230 12,248 35,507,114

6,440,229 77,931 421,961 19,136 140,496 580,709 344,251 102 36,190 2,407 150 6,600 17,143 396 336,676 851,384 9,066,488 244,230 12,248 35,379,976

- 159 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
September 30, 2010 (Unaudited) Gross amount Net amount Rp '000,000 Rp '000,000 At fair value through profit and loss Short term investment - securities - shares and warrants Short term investment - securities - bonds Short term investment - securities - units of mutual fund Segregated funds net assets unit link - shares Segregated funds net assets unit link - bonds Segregated funds net assets unit link - units of mutual fund Segregated funds net assets sharia - units of mutual fund Held to maturity Short term investment - securities - bonds Short term investment - securities - credit link note Short term investment - securities - export bill receivables Segregated funds net assets unit link - bonds Segregated funds net assets sharia - bonds Available for sale Short term investment - securities - shares Loans and receivables Cash and cash equivalents Securitiies purchased under agreements to resell Short term investment - placement with other banks Short term investment - time deposits Net investment in finance lease Consumer financing receivables Factoring receivables Segregated funds net assets unit link - time deposits Segregated funds net assets unit link - cash in banks Segregated funds net assets unit link - investment receivables Segregated funds net assets sharia - cash in banks Segregated funds net assets sharia - investment receivables Securities agent receivables Other accounts receivable - net Loans - net Investment in shares of stock Other assets Total financial assets 633,506 43,607 3,270,851 35,569 66,997 5,258,150 28,180 633,506 43,607 3,270,851 35,569 66,997 5,258,150 28,180

226,071 62,475 21,789 33,401 14,059

226,032 62,475 21,789 33,401 14,059

944,849

944,849

1,208,003 30,562 379,884 17,586 178,294 355,325 135,997 240,000 25,054 2,523 13,655 298 380,597 402,522 6,204,503 337,182 11,185 20,562,674

1,208,003 30,562 379,864 17,586 172,375 354,775 129,296 240,000 25,054 2,523 13,655 298 380,597 401,936 6,062,636 337,182 11,185 20,406,992

- 160 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
December 31, 2010 Gross amount Net amount Rp '000,000 Rp '000,000 At fair value through profit and loss Short term investment - securities - shares and warrants Short term investment - securities - bonds Short term investment - securities - units of mutual fund Segregated funds net assets unit link - shares Segregated funds net assets unit link - units of mutual fund Segregated funds net assets sharia - units of mutual fund Held to maturity Short term investment - securities - bonds Short term investment - securities - credit link note Short term investment - securities - export bill receivables Segregated funds net assets unit link - bonds Segregated funds net assets sharia - bonds Available for sale Short term investment - securities - shares Loans and receivables Cash and cash equivalents Securitiies purchased under agreements to resell Short term investment - placement with other banks Short term investment - time deposits Net investment in finance lease Consumer financing receivables Factoring receivables Segregated funds net assets unit link - time deposits Segregated funds net assets unit link - cash in banks Segregated funds net assets unit link - investment receivables Segregated funds net assets sharia - time deposits Segregated funds net assets sharia - cash in banks Segregated funds net assets sharia - investment receivables Securities agent receivables Other accounts receivable - net Loans - net Investment in shares of stock Other assets Total financial assets 1,033,109 53,240 3,128,024 36,072 5,929,443 40,413 1,033,109 53,240 3,128,024 36,072 5,929,443 40,413

182,159 63,070 322,030 34,149 14,085

182,159 63,070 322,030 34,149 14,085

1,190,672

1,190,672

642,403 107,141 706,189 33,543 167,583 377,499 192,738 984,135 35,927 2,271 3,000 4,599 504 165,481 543,103 7,011,795 337,182 22,496 23,364,055

642,403 107,141 706,189 33,543 163,869 376,961 187,558 984,135 35,927 2,271 3,000 4,599 504 165,481 542,356 6,934,157 337,182 22,496 23,276,238

- 161 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 Market Risk

Market risk is the fair value or future contractual cash flows of a financial instrument held by the Company and its subsidiaries will be affected due to changes in market variables such as interest rates, exchange rates, including derivatives of both risks (risks of derivative instruments). i. Interest rate risk Interest rate risk is the potential loss arising from movements in market interest rates as opposed to the position or transaction of the Company and its subsidiaries. To measure interest rate risk, the Company and its subsidiaries generally use the analysis of net interest income (net interest margin) and the difference (spread) interest rates. In addition, the Company and its subsidiaries also conduct a study analysis report due (maturity gap analysis) and static interest rate gap analysis to provide a static picture on the statement of financial position position on a particular date based on the characteristics of back interest rate determination date (repricing time) or the remaining time until due dates of productive assets and savings (remaining maturity). The table below shows consolidated statements of financial position exposures related to interest rate risk:
September 30, (Unaudited) 2011 Average effective interest rate % Assets Cash and cash equivalents Short term investment - time deposits Short term investment - placement with other banks Short term investment - securities - bonds Short term investment - securities - credit link note Short term investment - securities - BI Intervention Short term investment - securities - SBI Short term investment securities - export bill receivables Securities purchased under agreements to resell Net investment in finance lease Factoring receivables Consumer financing receivables Segregated funds in net assets unit link - cash in banks Segregated funds in net assets unit link - time deposits Segregated funds in net assets unit link - bonds Segregated funds in net assets sharia - cash in banks Segregated funds in net assets sharia - time deposits Segregated funds in net assets sharia - bonds Loans Securities agent receivables Other receivables Liabilities Deposits and deposits from other banks Securities sold under agreements to repurchase Loan received 1.50% 8.50% 2.77% 10.44% 6.75% 6.49% 6.75% 1.64% 15.98% 17.50% 39.50% 14.50% 1.50% 5.73% 12.25% 1.50% 8.22% 14.40% 12.84% 18.00% 11.00% Carrying Amount Rp '000,000 7,802,447 19,136 422,061 1,372,615 43,950 1,974,079 26,299 501,303 77,931 183,659 355,708 835,499 36,190 102 47,174 17,143 6,600 21,602 9,163,715 99,219 719,983 2010 Average effective interest rate % 1.50% 7.50% 4.20% 10.44% 8.05% 6.68% 1.51% 21.00% 17.50% 39.50% 14.50% 1.50% 8.88% 12.25% 1.50% 14.40% 13.45% 18.00% 11.00% Carrying Amount Rp '000,000 2,510,751 17,586 379,884 1,403,790 62,475 124,374 21,789 30,562 234,562 141,550 492,409 25,054 240,000 110,689 13,655 21,443 6,204,503 23,870 256,293 December 31, 2010 Average Carrying effective interest rate Amount % Rp '000,000 1.50% 7.24% 0.83% 10.44% 8.05% 6.68% 1.51% 16.00% 17.50% 39.50% 14.50% 1.50% 5.06% 12.25% 1.50% 8.38% 14.40% 14.13% 18.00% 11.00% 1,710,322 33,543 706,189 1,396,549 63,070 171,273 322,030 107,141 223,780 198,833 531,842 35,927 984,135 44,471 4,599 3,000 21,591 7,011,795 40,288 439,140

5.50% 20.00% 13.00%

13,405,000 37,223 886,391

5.00% 20.00% 13.00%

8,373,538 30,541 487,180

4.71% 20.00% 13.00%

9,604,110 32,069 512,265

ii.

Foreign currency risk Foreign currency risk is the risk that the carrying value or future cash flows of a financial instrument will fluctuate due to changes in currency exchange rate of Rupiah against foreign currencies. The Company and its subsidiaries handle this risk by always keeping the balance in assets and liabilities denominated in foreign currencies with the matching ratio at least 100% and is guided by regulations.

- 162 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008

The following table shows consolidated monetary assets and liabilities:


September 30, (Unaudited) 2011 2010 In Equivalent in Equivalent in Rp '000,000 US$ Rp '000,000

In US $ Assets Cash and cash equivalents Short term investments Factoring receivables Segregated funds in net assets - unit link Premium and reinsurance receivables Loans - net Ijarah assets Other accounts receivable Other assets Total assets Liabilities Deposits and deposits from other banks Accounts payable Premiums received in advance Liability for future policy benefit Segregated funds contract liabilities Unearned premiums and estimated own retention claims Taxes payable Accrued expenses Other liabilities Total liabilities Net Assets

43,103,891 214,930,547 5,835,472 63,122,339 15,587,613 176,607,326 218,220 9,907,970 118,750 529,432,128

379,024 1,892,518 51,486 556,928 137,529 1,552,378 1,918 87,393 1,048 4,660,222

157,486,261 163,830,897 3,256,824 58,269,824 6,092,754 91,486,820 3,623,664 116,158 484,163,202

1,405,556 1,462,106 26,001 519,996 54,372 816,519 32,339 1,037 4,317,926

306,207,595 26,808,057 47,574 97,998,248 57,554,316 4,269,010 82,011 354,022 9,657,060 502,977,893 26,454,235

2,691,565 236,525 420 864,639 507,802 37,665 721 3,112 84,925 4,427,374 232,848

289,101,539 21,470,214 49,832 58,180,772 55,176,746 2,363,806 107,061 203,094 5,566,284 432,219,348 51,943,854

2,580,232 191,600 445 519,205 492,397 21,095 956 1,813 49,677 3,857,420 460,506

2010 Equivalent in Equivalent in US$ Rp '000,000 Assets Cash and cash equivalents Short term investments Securities purcased under agreement to resell Net investment in finance lease Factoring receivables Segregated funds in net assets - unit link Premium and reinsurance receivables Loans Other accounts receivable Other assets Total assets Liabilities Deposits and deposits from other banks Accounts payable Premiums received in advance Liability for future policy benefits Segregated funds contract liabilities Unearned premiums and estimated own retention claims Taxes payable Accrued expenses Other liabilities Total liabilities Net Assets

December 31, 2009 Equivalent in Equivalent in US$ Rp '000,000

2008 Equivalent in Equivalent in US$ Rp '000,000

60,041,440 215,277,103 5,111,489 71,178,284 4,137,091 88,197,669 6,552,016 144,957 450,640,049

540,940 1,938,162 45,957 639,964 37,197 794,661 58,943 1,303 4,057,127

79,041,684 144,239,854 1,066,242 19,973 750,000 24,763,386 15,741,490 82,153,805 3,954,719 537,295 352,268,448

742,626 1,342,803 10,017 188 7,050 232,777 147,970 771,835 37,172 5,050 3,297,488

29,374,413 132,058,836 182,823 500,000 5,219,833 14,440,365 26,030,467 6,017,392 139,869 213,963,998

320,441 1,388,691 2,002 5,475 57,157 158,122 283,732 65,879 1,531 2,283,030

278,613,049 7,072,286 2,193,827 58,851,009 68,126,192 4,994,135 90,011 175,916 8,228,015 428,344,440 22,295,609

2,510,303 63,586 19,725 529,129 612,523 44,902 811 1,585 74,040 3,856,604 200,523

195,776,401 18,466,852 472,075 74,270,326 25,323,684 2,209,052 99,645 138,579 4,841,953 321,598,567 30,669,881

1,839,319 173,589 4,438 698,141 238,043 20,765 936 1,302 45,502 3,022,035 275,453

63,890,573 16,474,113 696,121 105,935,109 3,632,988 1,836,131 113,958 47,916 4,477,875 197,104,784 16,859,214

696,408 180,392 7,623 1,159,989 39,781 21,106 1,242 522 48,820 2,155,883 127,147

- 163 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 Liquidity Risk

Liquidity risk is a risk arising when the cash flow position of the Company and its subsidiaries is not enough to cover the liabilities which become due. In the management of liquidity risk, management monitors and maintains a level of cash and cash equivalents deemed adequate to finance the Company and its subsidiaries operations and to mitigate the effects of fluctuation in cash flows. Management also regularly evaluates the projected and actual cash flows, including loan maturity profiles, and continuously assess conditions in the financial markets for opportunities to obtain optimal funding sources. The table below summarizes the maturity profile of consolidated financial assets and liabilities based on contractual undiscounted payments.
> 1 year s.d 2 years Rp '000,000 156,891 43,950 66,119 246,028 39,665 9,884 1,306,805 1,293 1,870,635 September 30, 2011 (Unaudited) > 2 years s.d 5 years > 5 years Total Rp '0 00,000 Rp '000,000 Rp '000,000 293,620 27,673 88,040 4,509 9,682 3,264,484 2,674 3,690,682 688,399 1,492,696 18,105 2,199,200 8,383,778 19,136 422,061 2,454,586 8,277,938 1,415,560 43,950 26,299 1,974,079 501,303 77,931 183,659 355,708 835,499 36,190 102 5,150,493 33,649 47,174 2,407 150 17,143 6,600 41,678 396 21,602 9,199,472 336,676 851,893 244,230 12,248 40,973,590 Transaction cost Rp '000,000 35,757 35,757

< 1 year Rp '000,000 Assets Cash and cash equivalents Short term investment - time deposits Short term investment - placement with other banks Short term investment - securities - shares & warrant Short term investment - securities - units of mutual fund Short term investment - securities - bonds Short term investment - securities - credit link note Short term investment - securities - SBI Short term investment - securities - BI Intervention Short term investment - securities export bill receivables Securities purchased under agreement to resell Net investment in finance lease Factoring receivables Consumer financing receivables Segregated funds in net assets unit link - cash in banks Segregated funds in net assets unit link - time deposits Segregated funds in net assets unit link - units of mutual funds Segregated funds in net assets unit link - shares Segregated funds in net assets unit link - bonds Segregated funds in net assets unit link - investments receivables Segregated funds in net assets unit link - other receivables Segregated funds in net assets sharia - cash in banks Segregated funds in net assets sharia - time deposits Segregated funds in net assets sharia - unit mutual fund Segregated funds in net assets sharia - investment receivables Segregated funds in net assets sharia - bonds Loans Securities agent receivables Other accounts receivable Investment in shares of stock Other assets Total assets Liabilities Deposits and deposits from other banks Securities sold under agreements to repurchase Loan received Accounts payable Securities agent payables Accrued expenses Other liabilities Total liabilities Net Assets 8,383,778 19,136 422,061 2,454,586 8,277,938 276,650 26,299 1,974,079 501,303 77,931 89,867 355,708 501,431 36,190 102 5,150,493 33,649 3,000 2,407 150 17,143 6,600 41,678 396 2,036 3,135,487 336,676 829,821 244,230 12,248 33,213,073

Total Rp '000,000 8,383,778 19,136 422,061 2,454,586 8,277,938 1,415,560 43,950 26,299 1,974,079 501,303 77,931 183,659 355,708 835,499 36,190 102 5,150,493 33,649 47,174 2,407 150 17,143 6,600 41,678 396 21,602 9,163,715 336,676 851,893 244,230 12,248 40,937,833

13,405,000 37,223 875,393 2,086 168,158 68,589 357,780 14,914,229 18,298,844

7,774 7,774 1,862,861

3,748 3,748 3,686,934

2,199,200

13,405,000 37,223 886,915 2,086 168,158 68,589 357,780 14,925,751 26,047,839

524 524 35,233

13,405,000 37,223 886,391 2,086 168,158 68,589 357,780 14,925,227 26,012,606

- 164 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
September 30, 2010 (Unaudi ted) > 2 years s.d 5 years > 5 years Total Rp '000,000 Rp '000,000 Rp '000,000 432,374 44,625 63,789 43,007 10,291 19,365 2,735,284 4,299 3,353,034 719,675 1,036 842,625 27,918 1,591,254 2,818,992 17,586 379,884 1,578,355 3,270,851 1,403,790 62,475 124,374 21,789 30,562 234,562 141,550 492,409 25,054 240,000 5,258,150 35,569 110,689 2,523 13,655 28,180 298 21,443 6,222,810 380,597 402,522 337,182 11,185 23,667,036

< 1 year Rp '000,000 Assets Cash and cash equivalents Short term investment - time deposits Short term investment - placement with other banks Short term investment - securities - shares & warrant Short term investment - securities - units of mutual fund Short term investment - securities - bonds Short term investment - securities - credit link note Short term investment - securities - BI Intervention Short term investment - securities export bil l receivables Securities purchased under agreem ent to resell Net investment in finance lease Factori ng receivables Consumer financing receivables Segregated funds in net assets unit link - cash in banks Segregated funds in net assets unit link - time deposits Segregated funds in net assets unit link - units of mutual funds Segregated funds in net assets unit link - shares Segregated funds in net assets unit link - bonds Segregated funds in net assets unit link - investm ents receivables Segregated funds in net assets shari a - cash in banks Segregated funds in net assets shari a - unit mutual fund Segregated funds in net assets shari a - investment receivables Segregated funds in net assets shari a - bonds Loans Securities agent receivables Other accounts receivable Investment in shares of stock Other assets Total assets Liabilities Deposits and deposits from other banks Securities sold under agreements to repurchase Loan received Accounts payable Securities agent payables Accrued expenses Other liabilities Total liabilities Net Assets 2,818,992 17,586 379,884 1,578,355 3,270,851 101,495 17,850 124,374 21,789 30,562 92,802 141,550 309,955 25,054 240,000 5,258,150 35,569 97,398 2,523 13,655 28,180 298 1,185,673 380,597 369,498 337,182 11,185 16,891,007

> 1 year s.d 2 years Rp '000,000 150,246 77,971 139,447 3,000 1,042 1,459,228 807 1,831,741

Transaction cost Rp '000,000 18,307 18,307

Total Rp '000,000 2,818,992 17,586 379,884 1,578,355 3,270,851 1,403,790 62,475 124,374 21,789 30,562 234,562 141,550 492,409 25,054 240,000 5,258,150 35,569 110,689 2,523 13,655 28,180 298 21,443 6,204,503 380,597 402,522 337,182 11,185 23,648,729

8,373,538 30,541 477,673 1,359 772,223 34,898 345,950 10,036,182 6,854,825

8,309 8,309 1,823,432

1,348 1,348 3,351,686

1,591,254

8,373,538 30,541 487,330 1,359 772,223 34,898 345,950 10,045,839 13,621,197

150 150 18,157

8,373,538 30,541 487,180 1,359 772,223 34,898 345,950 10,045,689 13,603,040

< 1 year Rp '000,000 Assets Cash and cash equivalents Short term investment - time deposits Short term investment - placement with other banks Short term investment - securities - shares Short term investment - securities - units of mutual fund Short term investment - securities - bonds Short term investment - securities - credit link note Short term investment - securities - BI Intervention Short term investment - securities export bill receivables Securities purchased under agreem ent to resell Net investment in finance lease Factori ng receivables Consumer financing receivables Segregated funds in net assets uni t link - cash i n banks Segregated funds in net assets uni t link - ti me deposits Segregated funds in net assets uni t link - units of mutual funds Segregated funds in net assets uni t link - shares Segregated funds in net assets uni t link - bonds Segregated funds in net assets uni t link - investm ents receivables Segregated funds in net assets sharia - cash in banks Segregated funds in net assets sharia - time deposits Segregated funds in net assets sharia - unit mutual fund Segregated funds in net assets sharia - investment receivables Segregated funds in net assets sharia - bonds Loans Securities agent receivables Other accounts receivable Investment in shares in stock Other assets Total assets 1,980,945 33,543 706,189 2,223,781 3,128,024 100,389 18,020 171,273 322,030 107,141 102,299 198,833 323,271 35,927 984,135 5,929,443 36,072 3,000 2,271 4,599 3,000 40,413 504 2,057,151 165,481 517,786 337,182 22,496 19,555,198

> 1 year s.d 2 years Rp '0 00,000 141,702 45,050 73,223 154,957 22,729 2,080 1,374,063 4,892 1,818,696

December 31, 2010 > 2 years s.d 5 years > 5 years Rp '000,000 Rp '000,000 392,702 48,258 53,614 18,742 18,438 2,326,601 4,239 2,862,594 761,756 1,073 1,285,825 16,186 2,064,840

Total Rp '000,000 1,980,945 33,543 706,189 2,223,781 3,128,024 1,396,549 63,070 171,273 322,030 107,141 223,780 198,833 531,842 35,927 984,135 5,929,443 36,072 44,471 2,271 4,599 3,000 40,413 504 21,591 7,043,640 165,481 543,103 337,182 22,496 26,301,328

Transaction cost Rp '000,000 31,845 31,845

Total Rp '0 00.000 1,980,945 33,543 706,189 2,223,781 3,128,024 1,396,549 63,070 171,273 322,030 107,141 223,780 198,833 531,842 35,927 984,135 5,929,443 36,072 44,471 2,271 4,599 3,000 40,413 504 21,591 7,011,795 165,481 543,103 337,182 22,496 26,269,483

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008
December 31, 2010 > 2 years s.d 5 years > 5 years Rp '000,000 Rp '000,000

< 1 year Rp '000,000 Liabilities Deposits and deposits from other banks Securities sold under agreements to repurchase Loan received Accounts payable Securities agent payables Accrued expenses Other liabilities Total liabilities Net Assets

> 1 year s.d 2 years Rp '0 00,000

Total Rp '000,000

Transaction cost Rp '000,000

Total Rp '0 00.000

9,604,110 32,069 505,526 2,115 415,650 43,868 336,618 10,939,956 8,615,242

6,714 6,714 1,811,982

733 733 2,861,861

2,064,840

9,604,110 32,069 512,973 2,115 415,650 43,868 336,618 10,947,403 15,353,925

708 708 31,137

9,604,110 32,069 512,265 2,115 415,650 43,868 336,618 10,946,695 15,322,788

61. Noncurrent Assets Held For Sale

Based on Notarial Deed No. 56 dated October 10, 2011 of Andalia Farida, S.H, M.H, the Parent Company and PT Asuransi Sinar Mas, a subsidiary, have sold 1,000 shares and 51,000 shares, respectively of PT Asuransi Sumit Oto (ASO) to Djohan Marzuki and PT Summit Investment Indonesia, third parties, amounting to Rp 1,000 million and Rp 51,000 million or representing 1% and 51% ownership of interest in ASO, respectively. Accordingly, the Company classified ASO assets as noncurrent assets held for sale. Details of noncurrent assets held for sale and the liabilities directly related to the assets as follows:
September 30, 2011 (Unaudited) Rp '000,000 Noncurrent assets classified as held for sale Cash and cash equivalents Short-term investments Other accounts receivable Property and equipment - net Other assets 40,712 62,925 551 290 7 104,485 Liabilities directly related to noncurrent assets classified as held for sale Accounts payable Premiums received in advance Unearned premiums and estimated own retention claims Taxes payable Accrued expenses

312 5,325 1,892 681 11 8,221

- 166 -

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 62. Other Information a. PT Bank Sinarmas Tbk (BS)

The Capital Adequacy Ratio (CAR) of BS were calculated in accordance with Bank Indonesia Regulation.
Calculation of CAR is as follows:
September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 I. Capital Stock Component A. Total Core Capital B. Supplementary Capital II. Total Core and Supplementary Capital (A + B) III. Risk Weighted Assets Credit risk after considering specific risk Market risk Operational risk Total risk weight assets for credit, market and operational risk IV. Capital Adequacy Ratio (CAR) CAR with credit risk CAR with credit and market risk CAR with credit and operational risk CAR with credit, operational and market risk V. Minimum Capital Adequacy Ratio * Excludes deferred taxes 15.56% 15.43% 14.32% 14.21% 8% 14.09% 14.06% 13.26% 13.24% 8% 14.92% 14.79% 14.22% 14.10% 8% 13.95% 13.84% N/A N/A 8% 12.70% 12.65% N/A N/A 8% 1,272,901 72,239 1,345,140 660,676 64,339 725,015 912,105 62,019 974,124 597,617 51,111 648,728 462,048 44,294 506,342 December 31, 2009 Rp '000,000

2010 Rp '000,000

2008 Rp '000,000

8,647,105 73,171 749,015

5,147,095 8,583 322,267

6,529,888 54,357 322,267

4,648,915 38,022 -

3,987,474 15,230 -

9,469,291

5,477,945

6,906,512

4,686,937

4,002,704

Other ratios:
September 30, (Unaudited) 2011 2010 % % The ratio of productive assets to total productive assets The ratio of Non-Performing Loan (NPL) at : Gross Net The ratio of Loan to Deposits (LDR) December 31, 2009 %

2010 %

2008 %

2.09 0.95 0.89 68.36

1.55 2.04 1.58 71.48

1.53 1.26 1.11 73.64

2.94 2.17 1.65 79.01

1.60 1.99 1.72 81.16

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 b. PT Asuransi Jiwa Sinarmas MSIG (formerly PT Asuransi Jiwa Sinarmas) and PT Asuransi Sinar Mas

Calculation of Solvency margin is as follows: PT Asuransi Jiwa Sinarmas MSIG (formerly PT Asuransi Jiwa Sinarmas)
September 30, (Unaudited) 2011 2010 Rp '000.000 Rp '000.000 Solvency Margin Admitted Assets Liabilities (except subordinated loan) Total Solvency Margin Total Minimum Solvency Margin Excess of Solvency Margin Solvency Ratio Attained (%) 15,410,099 7,282,281 8,127,818 810,528 7,317,290 1002.78% 4,023,379 3,016,483 1,006,896 290,668 716,228 346.41% 3,960,921 2,669,330 1,291,591 275,372 1,016,219 469.03% 4,330,141 3,496,503 833,638 275,752 557,886 302.31% 6,085,619 5,453,347 632,272 325,974 306,298 193.96% December 31, 2009 Rp '000.000

2010 Rp '000.000

2008 Rp '000.000

PT Asuransi Sinar Mas


September 30, (Unaudited) 2011 2010 Rp '000,000 Rp '000,000 Solvency Margin Admitted Assets Liabilities (except subordinated loan) Total Solvency Margin Total Minimum Solvency Margin Excess of Solvency Margin Solvency Ratio Attained (%) 3,279,400 1,945,687 1,333,713 438,417 895,296 304.21% 2,564,412 1,575,242 989,170 319,210 669,960 309.88% 2,765,617 1,600,485 1,165,132 344,953 820,179 337.77% 2,054,933 1,336,696 718,237 275,508 442,729 260.70% 1,692,765 1,127,566 565,199 243,908 321,291 231.73% December 31, 2009 Rp '000,000

2010 Rp '000,000

2008 Rp '000,000

c.

PT Sinarmas Sekuritas

Calculation of Net Working Capital Adjusted is as follows:


September 30, (Unaudited) 2011 2010 Rp '000.000 Rp '000.000 Net Working Capital Total Current Assets Total Liabilities Working Capital Adjustment Related Parties Adjusted Gross Working Capital Risk Adjustment Equity in shares is recorded in BEI Other in shares is recorded in Bapepam Adjusted Net Working Capital Adjusted Net Working Capital Compulsorily Exceed Net Working Capital Adjusted December 31, 2009 Rp '000.000

2010 Rp '000.000

2008 Rp '000.000

901,032 304,810 596,222 471 595,751 45,834 549,917 25,200 524,717

1,261,654 707,431 554,223 7,507 546,716 50,140 55,417 441,159 25,200 415,959

1,142,789 466,157 676,632 6,258 670,374 62,681 64,363 543,330 25,200 518,130

588,260 142,318 445,942 445,942 29,455 39,108 377,379 25,200 352,179

347,471 74,577 272,894 272,894 8,325 22,081 242,488 25,200 217,288

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008 63. Restatement of 2009 and 2008 Consolidated Statements of Cash Flows

Effective January 1, 2010, cash and cash equivalents component has been modified as described in Note 2a. Therefore, for comparative purpose, the consolidated statement of cash flows for the years ended December 31, 2009 and 2008 have been restated as follows:
December 31, 2009 Before Restatement Rp '000,000 Net cash provided by operating activities Net cash used in investing activities Net cash provided by financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of the year Effect on foreign exchanges rate changes Cash and cash equivalents at the end of the year 999,274 (221,146) 195,818 973,946 825,610 (44,443) 1,755,113 Restatement Rp '000,000 277,939 277,939 277,939 After Restatement Rp '000,000 1,277,213 (221,146) 195,818 1,251,885 825,610 (44,443) 2,033,052

December 31, 2008 Before Restatement Rp '000,000 Net cash provided by operating activities Net cash used in investing activities Net cash provided by financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of the year Effect on foreign exchanges rate changes Cash and cash equivalents at the end of the year 105,900 (242,061) 269,183 133,022 677,760 14,828 825,610 Restatement Rp '000,000 110,040 110,040 110,040 After Restatement Rp '000,000 215,940 (242,061) 269,183 243,062 677,760 14,828 935,650

64. Prospective Accounting Pronouncements

The Indonesian Institute of Accountants has issued the following Revised Financial Accounting Standards (PSAK) and Interpretations (ISAK). These standards will be applicable to financial statements with annual period begin on or before January 1, 2012 as follows: Periods beginning on or after January 1, 2011
PSAK

1. 2. 3. 4.

PSAK 10 (Revised 2010), The Effects of Changes in Foreign Exchange Rates PSAK 18 (Revised 2010), Accounting and Reporting by Retirement Benefit Plans PSAK 24 (Revised 2010), Employee Benefits PSAK 33 (Revised 2011), Accounting of Land Stripping Activities and Environmental Management in General Mining 5. PSAK 34 (Revised 2010), Construction Contracts 6. PSAK 45 (Revised 2011), Financial Reporting for Non-profit Organization 7. PSAK 46 (Revised 2010), Accounting for Income Taxes 8. PSAK 50 (Revised 2010), Financial Instruments: Presentation 9. PSAK 53 (Revised 2010), Share Based Payment 10. PSAK 56 (Revised 2011), Earnings per Share

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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 2011 and 2010 and December 31, 2010, 2009 and 2008 and For the Nine Month Periods Ended September 30, 2011 and 2010 and the Years Ended December 31, 2010, 2009 and 2008

11. 12. 13. 14.

PSAK 60, Financial Instruments: Disclosures PSAK 61, Accounting of Government Grants and Disclosure of Government Assistance PSAK 63,Financial Reporting in Hyperinflationary Economies PSAK 64, Exploration for and Evaluation of Mineral Resources

ISAK

1. 2. 3. 4. 5. 6. 7. 8. 9.

ISAK 13 (2010), Hedges of a Net Investment in a Foreign Operation ISAK 15, PSAK 24 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and Their Interaction ISAK 16, Service Concession Agreement ISAK 18, Government Assistance - No Specific Relation with Operating Activity ISAK 19, Applying the Restatement Approach under PSAK 63: Financial Reporting in Hyperinflationary Economies ISAK 20, Income Taxes - Changes in the Tax Status of an Entity or its Shareholders ISAK 22, Service Concession Arrangements: Disclosures ISAK 23, Operating Leases-Incentives ISAK 24, Evaluating the Substance of Transactions Involving the Legal Form of a Lease

PPSAK

1. PPSAK 8: Withdrawal of IAS 27: Accounting for Cooperatives The Company and its subsidiaries are still evaluating the effects of these revised PSAKs, PPSAKs and ISAKs and have not yet determined the related effects on the consolidated financial statements.

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