2014 Annual Report English

MEETING
THE CHALLENGE
As global coal prices continued their steep declined in 2014, Drawing on its substantial asset base and solid balance sheet,
all coal-related businesses worldwide came under further Indika Energy took steps to meet the challenge primarily by
pressure, including Indika Energy as an integrated energy preserving cash and reducing costs, while simultaneously
company with major interests in coal. continuing to invest in strategic growth areas, improving
productivity, and strengthening corporate governance.
Confident in the long-term promise of energy as a The Company also continued to build on its long-term
fundamental need of every country, and even more so of strategy to capture both strategic and opportunistic
Indonesia which is expected to keep its steady economic business potentials with prudent risks management and
growth up for the foreseeable future, Indika Energy create synergies within the three business pillars of energy
nonetheless remained committed to its vision to be a resources, services and infrastructure.
world-class Indonesian energy company recognized for
its integrated competencies in energy resources, energy Together, these steps will help enable Indika Energy to last
services and energy infrastructure.. through the downturn, and emerge as a leaner, stronger
company more able to compete in the long run.
-1- Table of Contents

THEME CORPORATE FINANCIAL
1 OVERVIEW HIGHLIGHTS
5 25
Indika Energy at a Glance Financial Highlights
6 26
Capabilities Across the Entire
Stock Highlights
Coal Value Chain
29
8 Financial Highlights -
Operations Map Associate Company - Kideco
10 30
Milestones
12
Corporate & Organisation Structure
14
Vision, Mission and Values
18
Business Strategy
20
Composition of Shareholders
22
PT Indika Energy Tbk. Annual Report 2014 -2-

PRESIDENT MANAGEMENT FINANCIAL
COMMISSIONER’S REPORT STATEMENTS
AND PRESIDENT 59 121
DIRECTOR’S
MESSAGES
35 CORPORATE
President Commissioner’s Message Economy and Industry Overview
INFORMATION
258
36 60
President Director’s Message Operational Review
40 62
Financial Review
BOARD OF 76
COMMISSIONERS Business Prospects & Key Risk Factors
& BOARD OF 80
DIRECTORS
Information and Communications
PROFILES Technology
45 86
Corporate Governance Overview
88
Human Capital
110
Corporate Social Responsibility
114
Subsequent Events
118
-3- Table of Contents

CORPORATE
OVERVIEW
-5- Corporate Overview
Indika Energy
at a Glance
PT Indika Energy Tbk. (“Indika Energy” or “the Company”) We believe our portfolio of businesses enables us to provide
was listed in Indonesian Stock Exchange (IDX) in 2008. complementary products and services to domestic and
international customers, thereby positioning us to capture
Established in 2000, Indika Energy has grown to be one of growth opportunities across the Indonesian energy sector.
Indonesia’s leading integrated energy companies with a
portfolio of businesses spanning in the energy resources, Indika Energy has grown into a company operating across
energy services and energy infrastructure sectors. the Indonesia archipelago.
Over the years, the Company has grown rapidly both

organically and through acquisition of synergistic
businesses.
ENERGY RESOURCES
Ownership Ownership
46.0% 85.0%
PT Kideco Jaya Agung PT Multi Tambangjaya Utama
Indonesia’s third largest coal a thermal bituminous and coking
mining company, located in East Ownership coal asset in Central Kalimantan
Kalimantan
Ownership 100% Ownership
PT Indika Inti Corpindo

a coal trading company
34.9% 60.0%
PT Santan Batubara PT Mitra Energi Agung
a coal mining company in East a greenfield coal mining project in
Kalimantan East Kalimantan

ENERGY SERVICES
Ownership Ownership
69.8% 100%
PT Petrosea Tbk. PT Tripatra Engineering &
a coal contract mining PT Tripatra Engineers & Constructors
and engineering & construction (E&C) engineering, procurement and
company construction (EPC) oil & gas services
companies
ENERGY INFRASTRUCTURE
Ownership Ownership
51.0% 20.0%
PT Mitrabahtera Segara Sejati Tbk. PT Cirebon Electric Power
an integrated transport & logistics a 660 MW coal-fired steam power
services company for the mining generation plant in Cirebon, West Java
industry
Ownership
100%
PT Kuala Pelabuhan Indonesia
an integrated port management services
in Papua

Capabilities Across 1
the Entire Coal

Value Chain
Identification of potential coal
resources through geological
study
Electricity generation in coal-fired

power plant
12
Unloading coal from barges

to mother vessel
11
Barging the coal to end user or

transshipment point
10
Loading process of coal to barges
Coal loading terminal with stockpile prior to barging

Field exploration process of potential coal resources
Economic and feasibility study of the coal reserves

3
Engineering and construction of

coal production infrastructure
4
Overburden removal and coal extraction
5
Concession holder
Crushing and washing of extracted coal

6 Concession holder
Transportation of processed coal to

7 coal terminal
Concession holder

Operations Map
2
5
4
3
3
1
1 1
PT Indika Energy Tbk. Annual Report 2014 - 10 -

5
6
10
4
9 3
7
2
8 3
2 2
7 6
1
ENERGY RESOURCES ▲ ENERGY SERVICES n ENERGY INFRASTRUCTURE ●

1 Multi Tambangjaya Utama 1 Exxon Mobil Cepu Project 1 Cirebon Electric Power
2 Kideco Jaya Agung 2 JOB Pertamina Medco - Senoro 2 Petrosea Offshore Supply Base
3 Santan Batubara 3 Pertamina HE ONWJ 3 Kuala Pelabuhan Indonesia
4 Mitra Energi Agung 4 Conoco Phillips - ESC
5 BP Tangguh Floating Crane Â

6 ENI Muara Bakau
1 FC Nicholas
7 Gunung Bayan Pratama Project
2 FC Rachel
8 Kideco Project
3 FC Ben Glory
9 Santan Batubara Project
4 FC Abby
10 Adimitra Baratama Nusantara Project
5 FC Chloe
6 FC Blitz
7 FC Vittoria
- 11 - Corporate Overview
Milestones
2000 2009
The establishment of Indika Energy. Indika Energy acquired a 98.55% stake in Petrosea.
Petrosea was established in 1972, and engages in engineering
& construction (E&C) and coal mining contractor.
2004
Indika Energy acquired a 41% stake in Kideco.
Kideco was established in 1982, engages in open-cut
2010
coal mining in East Kalimantan. Kideco holds CCoW first • The establishment of Indika Logistic & Support Services
generation Mining Rights until 2023. (ILSS).
• Indika Energy entered into an Option Agreement to
acquire 51% stake in MBSS.
2006
MBSS was established in 1994, engages in sea
Indika Energy increased its stake in Kideco by 5% to 46%. transportation and logistics services.
2007 2011
• Indika Energy completed mergers with Tripatra Indika Energy acquired a 51% stake in MBSS.
Company and Ganesha Intra Development Company.
Tripatra Company was established in 1973, engages
in engineering, procurement and construction (EPC),
2012
operation & maintenance (O&M) in the energy sector. • Indika Energy divested 28.75% of its shares in Petrosea.
• The establishment of Cirebon Electric Power, a 660MW • Indika Energy acquired a 60% stake in Mitra Energi Agung
coal-fired steam power generation plant. Indika Energy (MEA).
owns 20% stake in CEP. MEA was established in 2008 as a greenfield coal asset which
• Tripatra acquired a 45% stake in Cotrans Asia, a coal owns an IUP concession area of 5,000 Ha in East Kalimantan.
logistics company established in 2004. • Indika Energy acquired a 85% stake in Multi Tambangjaya
Utama.
2008 MUTU was established in 1989 as a bituminous thermal and
coking coal mine holding a third generation CCoW in Central
• Indika Energy held its Initial Public Offering (IPO) on the Kalimantan, with a concession area of 24,970 Ha.
Indonesia Stock Exchange, offering 937,284,000 shares • Cirebon Electric Power, a 660MW coal-fired steam power
or 20% ownership. generation plant, reached its Commercial Operation Date
• The establishment of Sea Bridge Shipping, a (COD) and was fully operational.
transhipment service company, in which Tripatra owns
a 46% stake.
• Kuala Pelabuhan Indonesia (KPI), became a wholly 2013
owned subsidiary of Tripatra through the acquisition of Indika Logistic & Support Services acquired a 95% of
an additional 50.1% stake. Tripatra’s shares in KPI.
• The establishment of Intan Resource Indonesia.
• Indika Energy acquired a 100% stake in Indika Capital
Pte. Ltd. (previously Westlake Capital Pte. Ltd.) and Citra
Indah Prima.

Corporate Structure
ENERGY RESOURCES ENERGY SERVICES
100% 90% 100% 100% 100%

PT Indika Indonesia Resources PT Indika Inti Corpindo
PT Indika Multi Energi PT Tripatra Engineers PT Tripatra Engineering
(Indonesia) (Indonesia)
(Indonesia) and Constructors (Indonesia) (Indonesia)
Investment Holding Company & Investment Holding Company &
Investment Holding Company EPC and O&M services Engineering and Project Management
Coal Trading Business Coal Trading Business
100% 10%
PT Cotrans Asia
PT Indika Multi Daya Indika Capital
(Indonesia)
Energi (Indonesia) Pte. Ltd. (Singapore)
100%
Transshipment
45%
Oil & Gas Participating Finance Subsidiary
& Barging Services
Interest Holder
PT Mitra Energi 100% PT Sea Bridge Shipping

Agung (Indonesia) (Indonesia)
Indika Capital Resources
Coal Producer & Transshipment
60%
46%
Limited (B.V.I) & Barging Services
Distribution
Finance Subsidiary
PT Multi Tambangjaya Tripatra (Singapore)

Utama (Indonesia) Pte. Ltd. (Singapore)
PT Kideco Jaya Agung
100%
Coal Producer & Investment Holding
85%
(Indonesia)
Distribution Company
Coal Producer &
46%
Distribution
Indika Capital 100%
Investments Pte. Ltd.
PT Intan Resource Tripatra Investments
100%
(Singapore)
Indonesia (Indonesia) Limited (B.V.I)
43.3%
Coal Trading
Investment Holding Investment Holding
Company Company
PT Indika Energy
Trading (Indonesia)
Asia Prosperity Coal B.V.
60%
Coal Trading (The Netherlands)

100%
Finance Subsidiary
PT Citra Indah Prima

(Indonesia)
100%
Coal Distribution
90% 90%
PT Sindo Resources PT Melawi Rimba Minerals

(Indonesia) (Indonesia)
Coal Producer Coal Producer
Note :
100% shares ownership of Indonesian limited liability company (PT) held by 2 shareholders which both are PT Indika Energy Tbk.
and or its subsidiaries.

ENERGY INFRASTRUCTURE
69.8% 100% 90% 100%

Indika Power
PT Petrosea Tbk. PT Indika Energy Infrastructure PT Indika Infrastruktur PT Indy Properti
Investments Pte. Ltd
(Indonesia) (Indonesia) Investindo (Indonesia) Indonesia (Indonesia)
99.9%
(Singapore)
Mining and EPC (offshore) services Infrastructure Holding Company Infrastructure Holding Company Building Management
Investment Holding Company
5% 15%
PT Santan Batubara
PT Cirebon Electric Indo Integrated Energy
(Indonesia)
Power (Indonesia) B.V. (The Netherlands)
100%
Coal Producer &
50%
Independent Power Plant (IPP) Finance Subsidiary

Distribution
1 X 660 MW
PT POSB Infrastructure
Indo Integrated Energy
Kalimantan (Indonesia) 5% 15%
II B.V. (The Netherlands)
99.8%
100%
Port & Logistics
PT Cirebon Power Finance Subsidiary
Services
Services (Indonesia)
O&M company
PT Petrosea Kalimantan Indo Energy Finance
(Indonesia) B.V. (The Netherlands)
99.8%
100%
Contractor, Trade
Finance Subsidiary
& Services
100%
PT Indika Logistic & PT Indika Multi Energi PT LPG Distribusi PT Mitrabahtera Segara
Indo Energy Capital B.V.
Support Services Internasional Indonesia Sejati Tbk. (Indonesia)
(The Netherlands)
100%
100%
100%
(Indonesia) (Indonesia) (Indonesia) Transport & Logistics

51%
Finance Subsidiary
Port & Logistics Services Subholding Subholding Services
95% 100% 100% 60%
PT Kuala Pelabuhan PT Prasarana Energi PT Jatiwarna PT Mitra Alam Segara Indo Energy Finance II
5% Indonesia (Indonesia) Indonesia (Indonesia) Gas Utama (Indonesia) Sejati (Indonesia) B.V. (The Netherlands)
100%
Port & Logistics Services Power LPG Filling Shipping Finance Subsidiary
100% 100% 69.97%

100%
PT Prasarana Energi PT Satya Mitra Gas PT Mitra Swire CTM
Cirebon (Indonesia) (Indonesia) (Indonesia) Indo Energy Capital II B.V.
(The Netherlands)
Power LPG Filling Shipping
Finance Subsidiary
100% 50%
PT Wahida Arta Guna PT Mitra Hartono Sejati

Lestari (Indonesia) (Indonesia)
LPG Filling Shipping
51%
PT Mitra Jaya Offshore

(Indonesia)
Shipping
100%
Mitrabahtera Segara
Sejati Pte.Ltd.
(Singapore)
Shipping
Organisation Structure
GOOD CORPORATE GOVERNANCE
COMMITTEE
AUDIT
COMMITTEE
CORPORATE SECRETARY
& LEGAL
GROUP CHIEF DIRECTOR DIRECTOR DIRECTOR

Energy Resources - Coal Mining and Business
FINANCIAL OFFICER (Ad Interim) Energy Resources - Coal and Oil & Gas
Development
Energy Services - Oil & Gas
M. Arsjad Rasjid P.M. Azis Armand Richard Bruce Ness Joseph Pangalila
Investor Relations &

Corporate Finance
Financial Controller
Corporate Planning
Tax & Risk Management

BOARD OF COMMISSIONERS
RISK & INVESTMENT

COMMITTEE
HUMAN CAPITAL
COMMITTEE
PRESIDENT DIRECTOR
Group Chief Executive Officer
Wishnu Wardhana
VICE PRESIDENT DIRECTOR

M. Arsjad Rasjid P.M.
INTERNAL AUDIT
DIRECTOR INDEPENDENT DIRECTOR GROUP CHIEF

Energy Infrastructure - Sea Logistics Energy Infrastructure - Power OPERATING OFFICER (Ad Interim)
Rico Rustombi Eddy Junaedy Danu M. Arsjad Rasjid P.M.
Office of The CEO

& Corporate Communication
& Sustainability
ICT & Business Process

Improvement
Human Capital
Project Development
& Services
Corporate Security Indika
Vision, Mission
and Values
VISION MISSION
To be a world-class Indonesian energy company recognized 1. To capitalise on the abundant energy resources in
for its integrated competencies in energy resources, services support of the global economic growth.
and infrastructure.
2. To create integration and synergies across businesses.
3. To create optimum shareholders value.
4. To continuously develop its human capital.
5. To become a good corporate citizen.

VALUES
Integrity: Honest with oneself, others and one’s work at Achievement: Achievement as the measure of success and
every moment by upholding prevailing ethical standards the motivation to do what is best for the company.
and legal norms.
Social Responsibility: Highly concerned for the
Unity in diversity: Viewing diversity as an asset to environment and community, and contributing added
the company and accepting, valuing, completing and value as well as contributing to the prosperity of the society.
strengthening one another as a solidly unified entity.
Teamwork: Actively contributing and collaborating based

on trust and shared interests rather than personal interests.
Business Indika Energy’s five long term business strategies are
reflected in its focus on creating synergies within the
Strategy
Company’s three business pillars, boosting organic growth
and expanding through acquisitions, to generate value to
stakeholders.
1 2 3
TO CAPITALISE ON INDONESIA’S TO INTEGRATE DIVERSE ENERGY TO LEVERAGE EXISTING
ABUNDANT NATURAL PLATFORMS AND EXTRACT PARTNERSHIPS AND EXPERTISE
RESOURCES AND GROWTH IN OPERATIONAL EFFICIENCIES. IN THE ENERGY SECTOR BY
ENERGY DEMAND, INCLUDING PURSUING INITIATIVES AIMED AT
IDENTIFYING AND ACQUIRING SUPPLYING AND SERVING NEW
ATTRACTIVE ENERGY MARKETS.
INVESTMENTS.
Indika Energy seeks out investments in Indika Energy’s expertise and Currently, Indika Energy plays a
the energy sector through a disciplined capabilities now span the entire coal considerably large role in the coal
acquisition approach based on deep energy operations business chain. mining industry as well as nationwide
comprehension of energy assets. This Improved operational flexibility and energy services including the logistics
requires Indika Energy to stay informed cost management, and the provision of and energy infrastructure (power plant)
of natural resources regulatory efficient services to clients throughout businesses. Kideco’s international
developments and to promote the value chain, are critical to extracting customers include leading power plant
Indonesia’s economic development synergies from this integration. companies from 16 countries across
through its domestic and international Asia and Europe. Its eco-friendly, low
interests. calorific, low-ash and low-sulfur coal
gives rise to the possibility through
blending of creating new products, for
new markets.

Related to the prolonged decline in coal prices, the Company continued to focus on, and consistently implement, a strategy
of improved operational efficiency, cash preservation and cost optimisation.
The management conducted ongoing efforts to optimise asset utilisation, reduce cost across the entire organisation,
rasionalise human capital and allocate capital expenditure prudently.
4 5
TO OPTIMISE PRODUCTION TO CONTINUE TO DIVERSIFY
OPERATIONAL EFFICIENCIES EARNINGS SOURCES AND
BY LEVERAGING EXISTING STABILISE CASH FLOWS.
ASSETS FOR PRODUCTIVITY
AND EFFICIENCY IN THE MINING
OPERATIONS
Through structural planning and Indika Energy’s business includes

corporate work plans, Indika integrating attractive investments
Energy’s advanced Information and to diversify and grow earnings while
Communication Technology (ICT) maintaining financial prudence to
system has been harnessed to support ensure value protection.
business decision-making processes
and objectives across all business units
to achieve optimal efficiencies in the
use of resources, cost management,
fleet management and operational
flexibility.
SHAREHOLDING STRUCTURE AS OF 31 DECEMBER 2014
Board of Commissioners
& Board of Directors
(6.42%)
Public PT Indika Mitra Energi

(30.11%) (63.47%)
SHARE OWNERSHIP BY BOARD OF COMMISSIONERS & BOARD OF DIRECTORS

AS OF 31 DECEMBER 2014
NO. NAME POSITION NUMBER OF SHARES SHARES (%)
1 Wiwoho Basuki Tjokronegoro President Commissioner 5,264,500 0.10

2 Agus Lasmono Vice President Commissioner 10,156,000 0.19
3 Indracahya Basuki Commissioner 1,403,500 0.03
4 Pandri Prabono-Moelyo Commissioner 231,100,200 4.44
5 Anton Wahjosoedibjo Independent Commissioner - -
6 Dedi Aditya Sumanagara Independent Commissioner - -
7 Wishnu Wardhana President Director 1,208,500 0.02
8 M. Arsjad Rasjid P.M. Vice President Director 1,208,000 0.02
9 Azis Armand Director 1,208,000 0.02
10 Eddy Junaedy Danu Director 81,880,500 1.57
11 Rico Rustombi Director - -
12 Joseph Pangalila Director 165,000 0.00
13 Richard Bruce Ness Independent Director 810,000 0.02
Total 334,404,200 6.42

CAPITAL STRUCTURE AS OF 31 DECEMBER 2014
AUTHORIZED CAPITAL ISSUED & PAID-UP CAPITAL
Rp1,700,000,000,000 Rp521,019,200,000 (US$56,892,154)

(Divided into 17,000,000,000 Shares, (Divided into 5,210,192,000 Shares)
Each Share With a Par Value of Rp100)
CONTROLLING SHAREHOLDERS AS OF 31 DECEMBER 2014
OWNERSHIP STATUS NUMBER OF SHARES OWNERSHIP (%)
PT Indika Mitra Energi* 3,307,097,790 63.47

Public (under 5%) 1,903,094,210 36.53
*) Controlled by Wiwoho Basuki Tjokronegoro & family with 40.5% ownership and Agus Lasmono with
59.5% ownership.
SHARE OWNERSHIP COMPOSITION AS OF 31 DECEMBER 2014
OWNERSHIP STATUS NUMBER OF SHARES OWNERSHIP (%)
Limited Liability Companies 3,337,549,193 64.06

Individual – Foreign 3,476,500 0.07
Institutions – Foreign 619,600,185 11.89
Insurance 225,095,500 4.32
Pension Funds 62,652,700 1.20
Employees 35,579,500 0.68
Mutual Funds 17,344,995 0.33
Cooperatives 6,460,500 0.12
Foundations 14,636,000 0.29
Individuals – Domestic 887,796,927 17.04
Total 5,210,192,000 100.00
2014
FINANCIAL
- 25 -
HIGHLIGHTS
2014 Financial Highlights
Indika Energy
Financial Highlights Expressed in US$, unless otherwise stated
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 2014 2013 2012

Revenues 1,109,508,311 863,394,192 749,705,785
Cost of Contracts and Goods Sold 948,472,697 669,987,605 556,462,501
Gross Profit 161,035,614 193,406,587 193,243,284
General and Administrative Expenses 132,149,607 152,450,752 158,569,000
Operating Profit 28,886,007 38,830,394 34,674,284
(Loss) Profit for The Year (30,498,929) (53,798,103) 87,207,432
Total Comprehensive (Loss) Income for The Year (30,565,073) (49,329,010) 84,832,965
Profit Attributable To :
Owners of The Company (27,514,790) (62,487,116) 68,680,536
Non-Controlling Interests (2,984,139) 8,689,013 18,526,896
Total Comprehensive (Loss) Income Attributable To:
Owners of The Company (27,580,934) (58,018,023) 66,306,069
Non-Controlling Interests (2,984,139) 8,689,013 18,526,896
Equity in profit of Associates and Jointly Controlled Entities 73,482,756 102,511,466 178,983,576
Outstanding Shares 5,210,192,000 5,210,192,000 5,210,192,000
Earnings per share (0,0053) (0,0120) 0,0132
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Investment in associates 271,766,662 286,550,051 288,079,887
Investment in jointly-controlled entities 14,487,529 21,102,394 25,528,684
Investments in portofolio - Third party 54,780,796 54,896,489 40,026,825
Investments in bond - - -
Total Current Assets 831,419,308 759,345,558 698,911,436
Total Non-Current Assets 1,458,932,984 1,556,977,758 1,660,820,522
Total Assets 2,290,352,292 2,316,323,316 2,359,731,958
Total Current Liabilities 396,736,289 347,398,333 542,284,297
Total Non-Current Liabilities 981,113,153 1,019,053,345 794,927,594
Total Liabilities 1,377,849,442 1,366,451,678 1,337,211,891
Total Equity 912,502,850 949,871,638 1,022,520,067
Total Liabilities & Equity 2,290,352,292 2,316,323,316 2,359,731,958
GROWTH
Revenues 28.5% 15.2% 26.3%
Cost of Contracts and Goods Sold 41.6% 20.5% 20.3%
Gross Profit -16.7% -0.1% 47.8%
General and Administrative Expenses -14.5% -3.9% 44.5%
Operating Profit (Loss) -25.6% 17.2% 64.5%
Profit - Attributable to owners of the Company -56.0% -191.0% -46.3%
Total Assets -1.1% -1.8% 17.1%
Total Liabilities 0.8% 2.2% 15.3%
Total Equity -3.9% -7.1% 19.6%
OPERATING PROFIT RATIO
Operating Income (Loss) / Revenues (%) 2.60 4.50 4.63
Profit (Loss) Attributable to the Owners of the Company / Revenues (%) -2.48 -7.24 9.16
Operating Profit (Loss) / Total Equity (x) 0.03 0.04 0.03
Profit (Loss) Attributable to the Owners of the Company / Total Equity (x) -0.03 -0.07 0.07
Operating Profit (Loss) / Total Assets (x) 0.01 0.02 0.01
Profit (Loss) Attributable to the Owners of the Company /T otal Assets (x) -0.01 -0.03 0.03
FINANCIAL RATIO
Total Current Assets / Total Current Liabilities (x) 2.10 2.19 1.29
Total Liabilities / Total Equity (x) 1.51 1.44 1.31
Total Liabilities / Total Assets (x) 0.60 0.59 0.57

REVENUES
in US$
2014 | 1,109,508,311
2013 | 863,394,192 +28.5%
GROSS PROFIT
-16.7% in US$
2014 | 161,035,614
2013 | 193,406,587
OPERATING PROFIT
in US$
-25.6% 2014 | 28,886,007

2013 | 38,830,394
EQUITY IN NET PROFIT OF
-28.3%
ASSOCIATES AND JOINTLY
CONTROLLED ENTITIES
in US$
2014 | 73,482,756
2013 | 102,511,466
(LOSS) PROFIT ATTRIBUTABLE TO
-56.0%
OWNERS OF THE COMPANY
in US$
2014 | (27,514,790)
2013 | (62,487,116)
ADJUSTED EBITDA*
in US$
-11.0% 2014 | 231,909,056

2013 | 260,553,462
* Including dividends received from associates and

jointly controlled companies.
- 27 - 2014 Financial Highlights

REVENUE BREAKDOWN 2014
US$1,109.5 million
Others
18.9%
Tripatra
37.6%
MBSS
12.1%
Petrosea
31.4%

Stock Highlights
SHARE PRICE (in Rp)
2014 OPEN HIGHEST LOWEST CLOSE 2013 OPEN HIGHEST LOWEST CLOSE
1st Quarter 610 635 490 585 1st Quarter 1,240 1,730 1,200 1,220
2 Quarter
nd
630 750 565 630 2 Quarter
nd
770 1,300 700 770
3 Quarter
rd
745 815 625 740 3 Quarter
rd
750 880 475 740
4 Quarter
th
520 750 500 510 4 Quarter
th
600 880 580 590
VOLUME AND SHARES TRANSACTION

2014 Q1 Q2 Q3 Q4 2013 Q1 Q2 Q3 Q4
Average/day-Volume (thousand Average/day-Volume (thousand
6,485 8,685 3,765 3,275 11,586 7,416 20,278 9,690
shares) shares)
Average/day-Value (Rp billion) 3.7 5.8 2.7 2.0 Average/day-Value (Rp billion) 17.2 7.7 14.0 7.6
CHRONOLOGICAL SHARE LISTING

DATE OF EFFECTIVE STATEMENT
TOTAL NUMBER
DESCRIPTION SHARES OFFERED FROM OJK/SHAREHOLDERS IDX LISTING DATE
OF SHARES MEETING APPROVAL
Initial Public Offering 937,284,000 5,207,142,000 2 June 2008 11 June 2008
Employee and Management Stock Option 3,050,000 5,210,192,000 8 May 2008 11 August 2011
BOND INFORMATION
INTEREST EFFECTIVE MATURITY
DESCRIPTION VALUE STOCK LISTING RATING
RATE DATE DATE
Notes 2018 US$300 Singapore Stock 7% 5 May 2011 May 2018 “B1” with negative outlook by Moody’s
Million Exchange and “B+” with negative outlook by Fitch.
Notes 2023 US$500 Singapore Stock 6.375% 24 January January 2023 “B1” with negative outlook by Moody’s
Million Exchange 2013 and “B+” with negative outlook by Fitch.
DIVIDEND POLICY
DIVIDEND AMOUNT DIVIDEND PER SHARE
(IN RP)
DIVIDEND PAYOUT RATIO DIVIDEND PAYMENT DATE
(IN BILLION RP)
2008 437.40 84.00 40.32% of 2008 Net Income 3 July 2009

2009 362.83 69.68 50.00% of 2009 Net Income 25 June 2010
2010 249.94 48.00 (Interim Dividend) - 30 November 2010
135.39 26.00 (Final Dividend) - 29 July 2011
Total 385.30 74.00 50.00% of 2010 Net Income
2011 312.61 60.00 25.79% of 2011 Net Income 26 July 2012
2012 US$19,000,000,00 US$0.003647 21.79% of 2012 Net Income 31 July 2013

ASSOCIATE COMPANY - KIDECO
Expressed in million US$, unless otherwise stated
COMPREHENSIVE STATEMENTS OF INCOME 2014 2013 2012

Sales 2,059.4 2,120.6 2,357.3
Cost of Sales 1,731.1 1,654.9 1,623.9
Gross Profit 328.3 465.7 733.4
Operating Expenses 32.7 31.6 40.4
Operating Income 295.6 434.1 692.9
Net Income 154.4 212.2 380.0
STATEMENT OF FINANCIAL POSITION
Total Current Assets 396.0 457.6 523.7
Total Non-Current Assets 206.4 229.0 221.4
Total Assets 602.4 686.7 745.1
Total Current Liabilities 224.3 272.0 312.1
Total Non-Current Liabilities 51.6 51.4 46.9
Total Liabilities 275.8 323.4 359.1
Total Equity 326.6 363.3 386.0
Total Liabilities & Equity 602.4 686.6 745.1
GROWTH (%)
Sales -2.9 -10.0 4.0
Cost of Sales 4.6 1.9 15.8
Gross Profit -29.5 -36.5 -15.2
Operating Expenses 3.6 -21.9 -0.8
Operating Income -31.9 -37.4 -15.9
Net Income -27.3 -44.2 -16.7
Total Assets -12.3 -7.8 -8.9
Total Liabilities -14.7 -9.9 -0.7
Total Equity -10.1 -5.9 -15.3
OPERATING RATIO
Operating Income / Sales (%) 14.35 20.47 29.40
Net Income / Sales (%) 7.50 10.01 16.12
Operating Income / Total Equity (x) 0.90 1.20 1.80
Net Income / Total Equity (x) 0.47 0.58 0.98
Operating Income / Total Assets (x) 0.49 0.63 0.93
Net Income / Total Assets (x) 0.26 0.31 0.51
FINANCIAL RATIO
Total Current Assets / Total Current Liabilities (x) 1.77 1.68 1.68
Total Liabilities / Total Equity (x) 0.84 0.89 0.93
Total Liabilities / Total Assets (x) 0.46 0.47 0.48

REVENUES
-2.9% in million US$
2014 | 2,059.4
2013 | 2,120.6
GROSS PROFIT
2014 | 328.3
2013 | 465.7
OPERATING INCOME
2014 | 295.6
2013 | 434.1
NET INCOME
2014 | 154.4
2013 | 212.2
EBITDA
2014 | 328.7
2013 | 463.7
SALES VOLUME
in million tonnes
2014 | 40.2
2013 | 37.1 +8.3%
KIDECO’S COAL PRODUCTION
40.3
40
37.3
34.2
35
31.5
29.1
30
24.7
25 22.0
20.6
18.9
20 18.2
16.0
14.0
15
11.5
10.3
10 8.5
7.4
5.0
5
(in million tonnes) 1998 1999 2004 2007 2010 2011 2000 2001 2005 2006 2012 2002 2003 2008 2009 2013 2014
COAL RESERVES BY PIT in million tonnes
AREA CALORIFIC VALUE (KCAL) PROVED PROBABLE TOTAL
Roto South 4,870 91 66 157

Roto North 5,470 - 18 18
Roto Middle 4,730 22 17 39
Susubang 5,120 - 16 16
Samarangau 4,430 79 342 421
Total 192 459 651
Based on JORC Report dated April 2011

COAL RESOURCES BY PIT in million tonnes
AREA MEASURED INDICATED INFERRED TOTAL
Roto South 106 114 44 264

Roto North - 22 57 79
Roto Middle 27 33 62 122
Susubang - 21 7 28
Samarangau 88 570 225 883
Total 221 760 395 1.376
Based on JORC Report dated April 2011
SALES BY DESTINATION 2014
Others China
5.3% 22.8%
Korea
5.9%
Philippines
Taiwan
4.1%
3.6%
Japan
Hongkong 6.4%
3.8%
Thailand Indonesia
2.8% 27.7%
India Malaysia
11.5% 6.1%
OPERATION BY PIT 2014
DESCRIPTION ROTO NORTH ROTO SOUTH ROTO MIDDLE SAMARANGAU; SUSUBANG TOTAL
Overburden (million bcm) 18.6 115.9 35.8 81.7 5.3 257.4

Production (million tonnes) 3.0 15.9 4.3 16.7 0.5 40.3
Stripping Ratio (x) 6.3 7.3 8.3 4.9 10.4 6.4

PRESIDENT COMMISSIONER’S
AND PRESIDENT DIRECTOR’S
MESSAGES
- 35 -
PRESIDENT
“WE ARE CONFIDENT IN THE FUTURE
DEVELOPMENT OF THE COMPANY’S
BUSINESS PROSPECTS; THE CRUCIAL
CHALLENGE IS HOW THE COMPANY
COMMISSIONER’S CAN EFFECTIVELY MANAGE COST IN THE

INCREASINGLY COMPETITIVE ENERGY
INDUSTRY.”
MESSAGE WIWOHO BASUKI TJOKRONEGORO

President Commissioner

- 37 - President Commissioner’s and President Director’s Messages
Respected Shareholders,
The business environment in 2014 continued to be Under these persistently challenging conditions, the
very challenging for all participants in the coal industry management of Indika Energy continued to maintain a
worldwide. Global coal prices declined further due to a prudent approach to business, with increased focus on
combination of factors, foremost a slowdown in China’s efficiency, optimizing cost structure, preserving cash,
economic growth compounded by new regulations enhancing asset utilization, and rationalizing operations
limiting coal imports into China. Meanwhile, India’s coal which are susceptible to coal price changes. At the same
import demand was not as expected as the restructuring time, Indika Energy pushed to enhance its business
of the domestic power sector still faces challenges. These activities within the group which required minimum
factors have resulted in further coal price weakening. capital spending such as engineering and project
management services, as well as coal trading. Synergies
were continually developed within Indika Energy group
RESULTS & EVALUATION FOR 2014 by leveraging each subsidiary’s operational strengths.
As an integrated energy company with substantial

coal-related holdings, Indika Energy’s performance GOVERNANCE & HUMAN CAPITAL
was impacted by the abovementioned developments.
However, the Company registered some growth in The Company continued to improve its organizational
the oil and gas-related Engineering, Procurement & structure, among others by strengthening the functions
Construction (EPC) business as well as in the coal trading of committees at all subsidiaries for oversight covering
business. Notwithstanding these two developments, aspects such as audit, governance, risk and investment,
the Company recorded an overall loss in 2014 as and human capital development. These committees
all subsidiaries engaged in coal-related businesses are actively engaged in promoting improvements and
experienced margin contraction, while the EPC business enhancing coordination at the holding level.
delivered relatively low margin contribution.

Human capital development, as the key driver of the energy source, will continue to play a significant role
Company’s performance, continues to be given high in supporting the region’s economic growth. We are
priority, with improvements to strengthen the quality confident in the future development of the Company’s
and competency of staff and employees through various business prospects; the crucial challenge is how the
trainings and development. The ability to innovate, Company can effectively manage cost in the increasingly
embrace change and drive business growth is essential competitive energy industry. We believe that with the
for transformation into a high performance company. initiatives taken by the management, the Company will
be well-positioned to meet this challenge going forward.
BUSINESS PROSPECTS & STRATEGY In closing, on behalf of the Board of Commissioners,

I wish to thank the shareholders for the support given
In the coming years, the growth in demand for primary during this challenging time. I expect the Board of
energy sources including coal for Asia and especially Directors and all staff and employees to continue efforts
Indonesia will continue to increase in line with future to improve the performance of the Company in the
economic development. Coal, as a competitive primary coming years.
WIWOHO BASUKI TJOKRONEGORO


PRESIDENT
“IN 2014, THE MAIN PRIORITY OF THE
COMPANY WAS TO IMPROVE OPERATIONAL
EFFICIENCY, CONTINUE COST REDUCTION,
TIGHTEN CAPITAL SPENDING AND PRESERVE
DIRECTOR’S CASH. THE COMPANY WILL ALSO MANAGE

RISK BY FOCUSING ON EFFICIENT CASH
FLOW MANAGEMENT.”
MESSAGE WISHNU WARDHANA

President Director & CEO

Valued Shareholders,
The year 2014 was another challenging year for Reflecting the change in revenue and margin level mix,
companies engaged in the Indonesian coal sector the overall cost structure of the business portfolio also
business, including Indika Energy. The primary factor changed. Cost of contracts and goods sold grew 41.6%
was the continuing slowdown in China’s demand for in 2014 to US$948.5 million, driven mainly by costs
coal in 2014, given that China is the largest importer of associated with growth in the lower margin EPC projects
Indonesian coal. In addition, China reintroduced duty and smaller margins from the coal trading business. Fixed
on coal imports, making domestic coal cheaper than cost proportions for Petrosea and MBSS increased due to
imports. In the meantime, coal demand from India did low capacity utilization. As a consequence, consolidated
not grow as expected. These developments resulted gross margin declined 16.7% to US$161.0 million.
in oversupply of coal on the global market, leading to
intensified competition among coal producers and Measures consisting of cost efficiency and reduced
related industries which further depressed prices. As capital spending continued to be implemented to
a result, the entire coal value chain was significantly address the prolonged price decline in the coal industry.
impacted. Group wide cost rationalization successfully reduced
consolidated operating expenses by US$22.4 million to
US$132.1 million in 2014. In addition, the 2013 liability
2014 PERFORMANCE & STRATEGY management exercise resulted in annual interest cost
savings of around US$7.8 million from 2014 onwards.
As a result of prolonged pricing pressure on the coal In 2014, capital spending declined to US$68.5 million
industry, Indika Energy recorded net loss in 2014, compared with US$74.5 million in 2013, mainly for
despite an increase in revenue from US$863.4 million in maintenance of heavy equipment and completion of
2013 to US$1,109.5 million in 2014. The biggest revenue ongoing construction of the needed office facility.
contributor was Tripatra, whose revenue grew 37.7% to
US$417.7 million based on full year recognition of major In parallel, equity in net profit of associates and jointly
Engineering, Procurement & Construction (EPC) projects. controlled entities declined by 28.3% to US$73.5
Coal trading also contributed positively, with revenues million in 2014, mainly as a result of reduced earnings
increasing to US$143.0 million on higher volumes of coal contribution from Kideco due to the decline in coal
traded from 56,000 tonnes to 3.6 million tonnes. prices.
However, these contributions were offset by a decrease As shown by these operational results, the Company had
in revenue from Petrosea and MBSS. Petrosea registered a total net loss of US$27.5 million compared with net loss
revenue of US$347.9 million in 2014, representing a of US$62.5 million in 2013, including one off transactions
drop of 3.3%, while MBSS’ revenue decreased 11.3% in both years. Nonetheless, the Company closed the year
to US$134.1 million, as both were impacted by pricing with a healthy cash balance and other financial assets
pressures and lower capacity utilization. amounting to US$411.1 million.
Capital Expenditures in 2014

100%= US$68.5 Million
Petrosea (59%) Holding (22%)
MBSS (12%) MUTU (7%)

GOVERNANCE & HUMAN CAPITAL immediate priority is to continue focus on achieving
operational efficiency as well as further cost reductions,
To support improvement of operational efficiencies tightened capital spending and cash preservation
and synergies of the subsidiary companies, corporate efforts.
governance and control was strengthened at all levels
during the year. The actions taken included enhancing While coal prices are not projected to recover within
committee functions covering audit, human capital, the immediate future, energy is a crucial need for any
governance and risk & investment, implementing a country, including Indonesia which requires a large
Group-wide SAP information system, and implementing supply of energy due to its relatively high rate of
an online whistleblowing mechanism in the whole economic growth.
group.
We believe that the Company is strategically positioned
Human capital development was further strengthened to face these conditions and will be able to realize
through selective leadership training to enhance potential opportunities ahead by maintaining its focus
managerial leadership abilities as realized among and long term strategy of being an integrated energy
others by the annual Indika Energy Leadership Summit. business.
Meanwhile, a rationalization programme took place,
mostly related to the suspension of certain coal In summary, the management will continue to take a
operations. proactive role in protecting value as the Company’s
business portfolio is developed, enhanced and
diversified with reference to the principle of prudence.
OUTLOOK FOR THE FUTURE
On behalf of the Board of Directors, I would like to
The outlook for coal prices in the near future remains thank all our stakeholders for their support during this
low, as is Indonesia’s economic growth rate which is challenging period. Lastly, a special note of appreciation
predicted to remain sluggish at less than 6% in 2015. goes out to the Board of Commissioners for its support
and advice, on our path of progress towards improved
Reflecting on the Company’s performance in 2014 Company performance.
and the prolonged downturn of the coal industry, the
WISHNU WARDHANA
President Director & CEO

& BOARD OF DIRECTORS
PROFILES
- 45 -
The Board of Commissioners
INDRACAHYA DEDI ADITYA WIWOHO BASUKI

BASUKI SUMANAGARA TJOKRONEGORO
Commissioner Independent Commissioner President Commissioner

PANDRI AGUS ANTON
PRABONO-MOELYO LASMONO WAHJOSOEDIBJO
Commissioner Vice President Commissioner Independent Commissioner
- 47 - Board of Commissioners & Board of Directors Profiles

Board of Commissioners Profile
WIWOHO BASUKI TJOKRONEGORO

Age 75, appointed as President Commissioner of Indika Energy in February 2007

as referred to Deed Number 24 dated 15 February 2007. Bapak Wiwoho Basuki
Tjokronegoro also holds positions as President Commissioner of PT Indika Mitra
Energi (since 2005), PT Teladan Resources (since 2005), PT Indoturbine (since 2005)
and PT Teladan Utama (since 2008). Previously he held positions as the President
Director of PT Teladan Resources (1998-2005), President Commissioner of TPEC
(1988-2012) and TPE (1992-2012). He graduated with Magna Cum Laude from the
University of Kansas, earning a Bachelor of Science in Petroleum Engineering in 1964
and a Master of Science in Petroleum Engineering in 1965. Bapak Wiwoho Basuki
Tjokronegoro also entered into post-graduate study in Earth Science at Stanford
University from 1968 to 1969.

AGUS LASMONO
Vice President Commissioner
Age 43, appointed as Vice President Commissioner of Indika Energy since February 2007
as referred to Deed Number 24 dated 15 February 2007. Bapak Agus Lasmono also holds
positions as President Commissioner of PT Net Mediatama Indonesia (since 2012) and PT
Indika Inti Corpindo (since 2004), Commissioner of PT Indika Inti Mandiri (since 1999) and
Kideco (since 2004) and as President Director of PT Indika Mitra Energi (since 2010) and
PT Indika Multi Media (since 2002). Previously he also held positions such as President
Commissioner of PT Indika Inti Mandiri (1996- 1997), President Director of PT Indika Inti
Mandiri (1997-1999) and Independent Commissioner of PT Surya Citra Media Tbk. and
PT Surya Citra Televisi (2005-2012). He earned his Bachelor of Arts in Economics from
Pepperdine University, Malibu, California, United States in 1993 and Master degree in
International Business from West Coast University, Los Angeles, California, United States
in 1995.

INDRACAHYA BASUKI PANDRI PRABONO-MOELYO
Commissioner Commissioner
Age 41, appointed as Commissioner of Indika Energy since Age 66, appointed as Commissioner of Indika Energy in May
February 2007 as referred to Deed Number 24 dated 15 2013 as referred to Deed Number 15 dated 15 May 2013.
February 2007. Bapak Indracahya Basuki also holds positions Bapak Pandri Prabono-Moelyo initially joined Indika Energy
as Director of PT Teladan Resources (since 1998) and PT Indika as Director in 2007 as referred to Deed Number 24 dated 15
Mitra Energi (since 2005). Previously Bapak Indracahya Basuki February 2007. Bapak Pandri Prabono-Moelyo has more than
also held positions as Commissioner of Tripatra (2007-2012). 35 years experiences with Tripatra. Currently he also holds
He earned a Bachelor of Science in Mechanical Engineering positions as President Commissioner of Tripatra (since 2012),
from Columbia University, New York, United States in 1996 Commissioner of Petrosea (since May 2011), and Director of
and a Master of Business Administration from Rice University, Tripatra (Singapura) Pte. Ltd. (since 2005). He previously held
Houston, Texas, United States in 2002. positions as Director of Indika Energy (2007-2013), President
Director of TPEC (1988-2010) and TPE (1992-2010), and as
President Commissioner of Petrosea (2009–2010). He has
extensive experiences in dealing with large scale international
construction contracts and in practices and characteristics
of construction industries in Indonesia. Earned his degree
in Mechanical Engineering from the Bandung Institute of
Technology in 1974 and a Master of Business Administration
from Central Institute of Management in 1989.

ANTON WAHJOSOEDIBJO DEDI ADITYA SUMANAGARA
Independent Commissioner Independent Commissioner
Age 75, appointed as Independent Commissioner of Indika Age 67, appointed as Independent Commissioner of Indika
Energy since March 2008, as referred to Deed Number 65 Energy in May 2010 as referred to Deed Number 131 dated 19
dated 13 March 2008. Bapak Anton Wahjosoedibjo also holds May 2010. Bapak Dedi Aditya Sumanagara serves as Chairman
position as President Director of PT Pranata Energi Nusantara of the Board of Councilors of the Association of Indonesian
(since 2004). Previously, Bapak Anton Wahjosoedibjo served Mining Professionals (2012-2015). Previously he held positions
as executive advisor at Amoseas Indonesia Inc. and Senior as President Commissioner of PT Semen Gresik (Persero)
Vice President and Deputy Managing Director of PT Caltex Tbk. (2008-2013), Chairman of the Indonesian Chamber of
Pacific Indonesia (Chevron). He earned a degree in Electrical Commerce and Industry (2004-2009), President Director of
Engineering from the Bandung Institute of Technology PT Aneka Tambang (Persero) Tbk. (1997-2008), Commissioner
(ITB), Indonesia in 1962, attended the post-graduate study of PT Indonesia Chemical Alumina (2008-2012) and Director
in Electrical Engineering at the University of Pennsylvania of Development of PT Aneka Tambang (Persero) Tbk. (1994-
(1966), and earned a Petroleum Professional Diploma from 1997). He has more than 35 years experiences in the mining
the International Petroleum Institute, Tulsa, Oklahoma, United industry. He earned his degree in Geological Engineering in
States in 1976. He also attended various executive programs 1974 from the Bandung Institute of Technology.
at Stanford University, Palo Alto, California and National
University of Singapore (1983), The Southern Methodist
University of Dallas, Texas (1988) and Princeton University,
New Jersey, United States.

The Board of
Directors
AZIS WISHNU RICHARD

ARMAND WARDHANA BRUCE NESS
Director President Director Director

EDDY JUNAEDY M. ARSJAD JOSEPH RICO
DANU RASJID P.M. PANGALILA RUSTOMBI
Independent Director Vice President Director Director Director

Board of Directors
Profiles
WISHNU WARDHANA
President Director
Age 44, appointed as President Director of Indika Energy

in May 2013, whilst previously he held position as the Vice
President Director of Indika Energy from May 2009 to May
2013. Bapak Wishnu Wardhana initially joined Indika Energy
as Director in 2007 as appointed Deed Number 24 dated
15 February 2007. Previously Bapak Wishnu Wardhana also
holds positions as President Commissioner of PT Indika
Infrastruktur Investindo (2008-2009, 2013-2014), Vice President
Commissioner of Petrosea (2013-2014) and Commissioner of
MBSS (2013-2014). Currently he also holds positions as Vice
President Commissioner of Tripatra (since 2012), Commissioner
of PT Indika Mitra Energi (since 2005), PT Indoturbine (since
2005), Kideco (since 2005), and PT Indika Energy Infrastructure
(since June 2010), President Director of PT Teladan Resources
(since 2004) and PT Indika Inti Corpindo (since 2008). He
has been appointed as Asia Pacific Economic Cooperation
Business Advisory Council (ABAC) Indonesia Chair and APEC
CEO Summit 2013 Chair (Decree of President of Republic of
Indonesia No. 79M Year 2012). He earned his Bachelor of Arts
in Economics from Pepperdine University, California, United
States in 1993.

M. ARSJAD RASJID P.M. AZIS ARMAND
Vice President Director Director
(Operation & Finance) (Director of Resources: Coal and Oil & Gas)
Age 44, appointed as Vice President Director of Indika Energy Age 47, appointed as Director of Indika Energy since February
in May 2013, whilst previously he held position as President 2007, whilst from March 2008 to May 2013, he held position
Director of Indika Energy since November 2005 to May as Unaffiliated Director of Indika Energy. Bapak Azis Armand
2013. Bapak Arsjad Rasjid initially appointed as President initially joined Indika Energy as Director in 2007 with reference
Commissioner of Indika Energy in 2000 with reference to Deed to Deed Number 24 dated 15 February 2007. He also holds
Number 31 dated 19 October 2000. Currently he also holds positions as Commissioner of PT Indika Inti Corpindo (since
positions as Director of Kideco (since 2005), Commissioner of 2008) and PT Indika Infrastruktur Investindo (since 2008).
Tripatra (since 2007), Commissioner of PT Indika Mitra Energi Previously he also held position as Commissioner of Petrosea
(since 2010), President Commissioner of MBSS (since 2010) (2009-2013). He has more than 10 years extensive experiences
and Director of PT Indika Energy Infrastructure (since 2010). in Corporate Finance and Investment, with previous careers
Bapak Arsjad Rasjid studied at the University of Southern as Rating Manager at PT Pemeringkatan Efek Indonesia (1995-
California in Computer Engineering in 1990 and earned his 1997) and Associate at JP Morgan Chase (1997-2004). He
Bachelor of Science in Business Administration in 1993 from earned a degree in Economics from the Faculty of Economics
Pepperdine University, California, United States. In March 2012, University of Indonesia in 1991 and Master in Urban Planning
he completed the Executive Education Global Leadership from the University of Illinois in Urbana-Champaign, United
and Public Policy for the 21st Century program at the Harvard States in 1995.
Kennedy School, United States and on Insights Into Politics
and Public Policy in Asia for Global Leaders at the Lee Kuan
Yew School of Public Policy, Singapore. In 2013 he completed
Executive Education on Impacting Investing at Said Business
School, University of Oxford, United Kingdom. In 2014 he
completed Executive Education on Leadership and Decision
Making in the 21st Century program at the Jackson Institute
for Global Affairs, Yale University, United States.

EDDY JUNAEDY DANU RICHARD BRUCE NESS
Independent Director Director
(Director of Energy Infrastructure: Power Plant) (Director of Energy Services: Mining and
Director of Business Development)
Age 64, appointed as Independent Director of Indika Energy Age 65, appointed as Director of Indika Energy in May 2014,
in May 2014. Bapak Eddy Junaedy Danu initially joined Indika whilst previously he held position as Director of Indika Energy
Energy as Director in 2009 with reference to Deed Number since May 2009 and as Independent Director in 2013 to 2014.
123 dated 28 May 2009. He also holds other positions such Bapak Richard Bruce Ness initially joined Indika Energy as
as President Commissioner of Petrosea (since April 2014), PT Director in 2009 with reference to Deed Number 123 dated
Indika Multi Energi Internasional (since May 2014) and PT 28 May 2009. Currently he is also the President Director of
Indika Infrastruktur Investindo (since May 2014). Previously Petrosea (since April 2014). Bapak Richard Bruce Ness has
he held positions such as President Director of Petrosea been actively involved in the energy, resources and mining
(2013-2014), PT Indika Infrastruktur Investindo (2013-2014) sectors for more than 30 years. Key positions he previously
and PT Cirebon Electric Power (2013-2014). He had been with held, including President Commissioner of Petrosea (2013-
Tripatra for more than 35 years, where previously he also held 2014), Commissioner of MBSS (2010–2011), President Director
positions such as Commissioner of Tripatra and Executive at various affiliates and subsidiaries of Newmont, mining
Director for Marketing and Operational. Has more than 36 consultant at PT Clinton Indonesia and Vice President of PT
years experiences in engineering and project management Freeport Indonesia. Bapak Richard Bruce Ness also holds the
and has served as Project Engineer and Project Manager for position of Chairman of Mining for the American Chamber of
various large-scale oil and gas EPC projects. He graduated with Commerce, Indonesia. He earned a degree in Mechanics from
a degree in Electrical Engineering from Bandung Institute of Moorhead Technical Institute, Minnesota, United States in 1969
Technology (ITB) in 1973 and a Master in International Business and attended Moorhead State University, Minnesota, United
from Prasetya Mulya Business School in 1998. States for additional studies in post-secondary education
until 1979. Bapak Richard Bruce Ness also completed the
Professional Management program at Harvard Business
School, United States in 1992.

RICO RUSTOMBI JOSEPH PANGALILA
Director Director
(Director of Energy Infrastructure: Sea Logistics) (Director of Energy Services: Oil & Gas)
Age 46, initially appointed as Director of Indika Energy in Age 51, initially appointed as Director of Indika Energy in May
May 2013 with reference to Deed Number 15 dated 15 May 2013 with reference to Deed Number 15 dated 15 May 2013.
2013. He also holds positions as the President Director of Currently he also serves as President Director of Tripatra (since
MBSS since 2012 and Commissioner of PT Cotrans Asia since 2012), whilst previously he held position as Director of Tripatra
2006. Previously he also held positions as the Vice President (2007–2012). Bapak Joseph Pangalila started his career in 1988
Director MBSS (2010-2012) and Commissioner of Petrosea in Tripatra and he used to be a lecturer at the Department
(2010-2013). Bapak Rico Rustombi joined Indika Energy in 2006 of Mechanical Engineering at the Bandung Institute of
and appointed as Group Chief Corporate Affairs of PT Indika Technology. He earned a degree in Mechanical Engineering
Energy Tbk (2011-2013). He also holds positions as Finance from the Bandung Institute of Technology in 1987 and a
Director of PT Abadi Agung Utama, President Director of PT Master degree in Business Administration from University of
Wahana Artha Mulya (since 2005) and President Director PT Indonesia in 1991.
Quantum Sarana Nusantara since 2004. Bapak Rico Rustombi
also held numerous positions at different mining, engineering,
construction and energy services companies in Indonesia
throughout his career. He is also active as an executive
board in organization such as KADIN and HIPMI. He earned a
bachelor’s degree in Economics from the Indonesian School
of Economics and Business Management (STEKPI) majoring in
Finance and a master’s degree in Finance from the University
of Gadjah Mada, Yogyakarta.

MANAGEMENT
- 59 -
REPORT
Economy & Industry
Overview
ECONOMIC REVIEW The primary factor was the slowdown in Chinese
demand for coal in 2014. In addition, China
Global growth was mixed in 2014, with IMF estimates reintroduced a duty on coal imports, making domestic
of growth for Asia slowing slightly to 6.5% over 6.6% coal cheaper than international supplies. International
in 2013. The main drag on growth in Asia was China’s coal prices consequently declined due to the increase
slowing economy, which was partially offset partially in available supply. Indian demand growth for coal,
by India’s acceleration. The Indonesian economic while growing, was insufficient to offset the decline in
growth expanded at its slowest pace in five years Chinese demand.
with growth at 5.1% according to the Central Statistics
Agency, down from 5.6% the year before. The main Consequently, Indonesian coal producers and related
factors were tight monetary stance, a weak global industries were significantly affected as China is the
economy with slowing Chinese growth, and a tightly largest coal export market for Indonesia. Top tier
contested race. Indonesia also suffered from falling producers continued to try to compensate for lower
commodity prices, a widening current account and prices by increasing volume to maintain revenue, with
depreciation of the Rupiah. exports increased from 349 million tonnes in 2013 to
359 million tonnes, according to the Ministry of Energy
Indonesia’s long term prospects remain intact. Fueled & Mineral Resources, putting more pressure on prices,
by strong consumer demand, a stable banking while a number of smaller of coal producers chose to
system and political climate, the economy has plenty suspend their operations completely.
of growth potential given the nation’s large and
youthful population of some 240 million people. Meanwhile, oil and gas prices declined by more
Accordingly, the demand for energy is also expected than 40% between mid-2014 and year-end due to
to rise as a crucial need for development, supported a combination of factors including high levels of oil
by nationwide urbanization and infrastructure production in the Middle East, ramped up American
development. As an integrated energy company, shale oil production resulting in lower oil imports to
Indika Energy is well-positioned to participate in these the United States, and slowing demand from Europe
sectors. and Asia Pacific. All these factors have resulted in
higher levels of available supply, depressing market
prices.
COAL INDUSTRY REVIEW
Global coal prices continued their prolonged decline
in 2014, with the average price of the Newcastle
declined from US$82.9 per tonne in 2013 to US$68.7
per tonne in 2014.

- 61 - Management Report
MEETING THE CHALLENGE
Operational Indika Energy faced a challenging year in 2014, with

continued pressure on its coal-related businesses due
to the difficult market conditions. The majority of its
Review
subsidiaries and associate companies performed lower
for the year, though still contributing positively. The
main contributor to revenue in 2014 were oil and gas
engineering, procurement and construction (EPC)
services carried out by Tripatra, which contributed
approximately 40% of revenue in 2014.
COAL RESOURCES ASSETS
Indika Energy’s Coal Reserves Coal Resources Concession Area

Ownership (in million Tonnes) (in million Tonnes) (Hectares)
Kideco 46.0 % 651.0 (1) 1,376.0 (1) 50,921 (1)

Santan 34.9 % 17.3 (2) 61.5 (2) 24,930 (2)
MEA 60.0 % ~40 (3) ~100 (3) 5,000 (3)
MUTU 85.0 % 40.6 (4)
75.2 (4)
24,970 (4)
(1) Source: Based on a JORC-compliant report prepared by PT Runge Indonesia as of 31 April, 2011.
(2) Source: Based on a JORC-compliant report prepared by PT Runge Indonesia as of 1 January, 2011 in respect of the Separi block.
(3) Source: In-house geologist estimate.
(4) Source: Based on a USGS-compliant January 2011 report prepared by PT LAPI ITB and based on management estimates.

Faced with a bearish climate for coal, Indika Energy • Leadership competency training was held for the Board
continued ongoing cost efficiency initiatives, optimized of Directors and employees to boost productivity.
the cost structure, preserved cash, tightened capital
• Health, Safety and Environment (HSE) compliance was
spending, enhanced non-coal holdings in our business
maintained across the Group.
portfolio such as EPC, and rationalized operations
susceptible to drastic coal price changes. At the same • Implementation of a Group-wide SAP ERP system for
time, improvements continued to be made in various improved management and reporting.
areas including human capital, information technology,
and corporate governance.
Revenues grew 28.5% to US$1,109.5 million in 2014,

with a 16.7% decrease in gross profit to US$161.0 million.
Major developments in 2014 included:
• Cost efficiency initiatives: Human resources rationalisation

and cost cutting initiatives across Indika Energy Group
decreased consolidated operating expense by US$22.4
million.
• Rationalizing operations susceptible to drastic coal price
changes: Operations at coal asset Santan Batubara were
suspended during the year, reserving its high quality
coal for better pricing conditions. The Company has
decided to defer the start of production and are
currently in the process of reevaluating the mine
and business plan at Mitra Energi Agung and Multi
Tambangjaya Utama.
The Company has engaged in coal mining operations
Energy
since 2004, through a 41.0% acquisition of interest in
coal producer PT Kideco Jaya Agung (“Kideco”), which
was later increased to 46.0% in 2006. In 2009, coal
producer PT Santan Batubara (“Santan”) was added to
Resources
the energy resources portfolio, through the acquisition
of PT Petrosea Tbk. In 2012, Indika Energy acquired
stakes in coal assets PT Mitra Energi Agung (MEA) and PT
Multi Tambangjaya Utama (MUTU).
PT KIDECO JAYA AGUNG

The Energy Resources PT Kideco Jaya Agung (Kideco) was established in 1982
and engages in surface open-cut coal mining at its 50,921
business pillar focuses hectare concession area in East Kalimantan, Indonesia,
where it holds coal mining rights until 2023 under a first-
on the exploration, generation Coal Contract of Work (CCoW). As Indonesia’s
third-largest coal mining company measured by
production and production, Kideco represents the Company’s core asset
in the energy resource pillar.
processing of coal. Located in Paser Regency, East Kalimantan, Kideco

operates five mine concession sites using open pit

mining methods in Roto North, Roto South, Roto Supported by a well-developed infrastructure located
Middle, Susubang and Samarangau, with aggregate in favourable geographical terrain with a well-planned
probable and proven coal reserves estimates of 651 coal mine, Kideco maintained a low strip ratio of 6.4x
million tonnes and total estimated coal resources of during a very challenging coal market in 2014, and was
1,376 million tonnes based on JORC (Australian Joint able to hold its position as one of the lowest cost coal
Ore Reserves Committee) dated April 2011. Kideco has producers in the world. Total volume of coal produced
identified potential additional coal resources at its Samu for the year was 40.3 million tonnes, compared with
and Pinang Jatus concession areas. 37.3 million tonnes the year before. Higher production
volumes substantially offset the impact of the lower
Kideco produces a range of sub-bituminous coal average selling price (ASP) per tonne realized by Kideco
containing very low levels of sulphur (0.1%) and ash in 2014 of US$51.3 per tonne compared with US$57.2 per
(average 2.5%). In addition, Kideco’s coal produces tonne in 2013. As a result, total revenue for the year was
relatively low levels of nitrogen during combustion, US$2,059.4 million, compared with US$2,120.6 million in
making it environmentally friendly for use in coal- the previous year.
fired power plants. Based on its proven track record
in meeting contractual coal delivery obligations, Despite the 8.2% rise in coal production, efficient
Kideco has earned a reputation for being one of the operations was seen with Cost of Goods Sold and
most reliable coal suppliers in Indonesia. Kideco’s Operational Expenses only increased by 4.6% and
geographically well-diversified customer base includes 3.6% respectively compared to the previous year.
long standing relationships with highly-rated power Consequently, net profit for the year was US$154.4
companies in South Korea, Taiwan, Malaysia and million, 27.3% lower than 2013, of which Indika Energy’s
Indonesia, with annual installed capacity of up to 55 share was US$71.0 million.
million tonnes.
OPERATIONAL PERFORMANCE
257.4 6.4
2014
40.3
241.1 6.5
2013
37.3 Waste removal
(in million bcm)
239.4 7.0
2012
34.2
Production
(in million tonnes)
219.0 7.0
2011
31.5
Stripping ratio (x)
170.1 5.9
2010
29.1
OPERATIONAL HIGHLIGHTS
PRODUCTION VOLUME
in million tonnes
2014 | 40.3
2013 | 37.3 +8.2%
SALES VOLUME
in million tonnes
2014 | 40.2
2013 | 37.1 +8.3%
STRIPPING RATIO
-1.3% (x)
2014 | 6.4
2013 | 6.5
AVERAGE SELLING PRICE
-10.3% in million US$/ton
2014 | 51.3
2013 | 57.2

PT SANTAN BATUBARA a high-rank bituminous thermal and coking coal holding
a third-generation CCoW based in Central Kalimantan,
Established in 1998, PT Santan Batubara (Santan) is a with a concession area of 24,970 hectares of which over
50/50 joint-venture between Indika Energy’s 69.8% 7,000 Ha have been mapped.
owned Petrosea and PT Harum Energy Tbk. that engages
in surface open-cut coal mining at its 24,930 hectare Located approximately 30 km northeast of Ampah city
concession area in Kutai Kartanegara Regency and Kutai and approximately 250 km north of Banjarmasin, MUTU
Timur Regency, East Kalimantan. It holds coal mining has developed coal hauling roads with a capacity of 3.0
rights until 2028 under a third-generation CCoW. million tonnes per year and a barge port with a capacity
of 5.0 million tonnes per year. MUTU has obtained an
In 2014, the 50% equity contribution from Santan environmental permit to extract up to 1.2 million tonnes
amounted to US$4.0 million net loss compared with a of coal per year. Necessary permits for production were
US$4.3 million net loss in 2013. Following the prolonged obtained in the fourth quarter of 2014.
weakness in coal prices, in the second half of the year the
management of Santan closed the Separi block mine and In view of the current coal market conditions, the
suspended operations in the Uskap block in line with the Company has decided to defer the start of production of
management’s strategy for conserving maximum value. MUTU and are currently in the process of re-evaluating
its mine and business plan.
In light of the current situation, Santan is carefully
reviewing its plans for the future. MEA’s exploration activities are on hold until market
conditions improve.
PT MITRA ENERGI AGUNG & PT MULTI
TAMBANGJAYA UTAMA PT INDIKA INTI CORPINDO
In March 2012, Indika Energy acquired an indirect 60.0% PT Indika Inti Corpindo (IIC) is a coal trading company,
stake in PT Mitra Energi Agung (MEA), a greenfield coal which is 99.99% owned by Indika Energy.
asset located in East Kalimantan with an IUP concession
area covering 5,000 hectares. More than 90.0% of Leveraging the Group’s existing network and experience,
the MEA concession has been explored and several in 2014, IIC was able to generate revenues of US$135.1
promising coal seams identified. million on 3.6 million tonnes coal traded. By comparison,
in 2013 only 56,000 tonnes were traded. Revenues for
In May 2012, Indika Energy acquired an indirect 85.0% 2014 amounted to US$135.1 million.
equity interest in PT Multi Tambangjaya Utama (MUTU),
TRIPATRA
Energy PT Tripatra Engineering and PT Tripatra Engineers &

Constructors (Tripatra) has one of the longest service
histories among engineering, procurement and
Services
construction (EPC) companies in Indonesia since its
establishment in 1973. Through its two subsidiaries,
Tripatra provides a complete range of engineering,
procurement and construction (EPC), operations and
maintenance (O&M), engineering, procurement and
costruction management (EPCM) and logistics services
The Energy Services business pillar for a range of energy clients with a focus on the oil & gas,
consists of Tripatra and Petrosea. downstream and petrochemical, and power sectors.
Tripatra is a provider of engineering, Tripatra had a solid start in 2014 as it successfully

procurement and construction obtained two major engineering services contracts
valued at over a billion dollars. The first project, valued at
(EPC), operations and maintenance US$1.1 billion in total, is an EPC contract for construction
and installation of a new Barge Floating Production Unit
(O&M) and logistics services in (FPU) in Muara Bakau B.V.’s offshore Jangkrik Complex
this energy sector. Petrosea offers (Jangkrik) in the Muara Bakau Permit area, Makassar
Strait, offshore Kalimantan. Tripatra is involved in this
contract mining, engineering and project both directly and through a project consortium
construction (E&C) services, with with PT Saipem Indonesia, Chiyoda International
Indonesia and Hyundai Heavy Industries Co. Ltd. This
complete pit-to-port and life-of-mine agreement contributed US$61.6 million to 2014 revenue.
services.

The second project was an onshore Front End Engineering As of December 31, 2014, including new projects
and Design (FEED) project valued at US$50 million for factored in, Tripatra’s contracted backlog stood at
the Tangguh Expansion Project (Train 3) in Teluk Bintuni US$376.9 million.
Regency, West Papua, of which Tripatra’s portion would
be 30%. Tripatra was part of a winning consortium Associate Companies (Logistics services)
consisting of Tripatra Engineers and Constructors,
Tripatra Engineering, Chiyoda International Indonesia, Tripatra’s logistics business remained resilient in this
Saipem Indonesia, Suluh Ardhi Engineering and Chiyoda challenging environment, for the reason that it caters
Corporation Consortium. While small, participation in to the end user market. Total combined profit and
FEED opens opportunities for Tripatra to participate in dividends paid out to Tripatra reached US$20.5 million
subsequent phases of development. and US$5.1 million respectively in 2014.
Total revenue for the year grew 37.7% to US$417.7

million, mostly derived from full 12-month recognition PT PETROSEA TBK.
on several projects which were just starting up in 2013.
With more than 40 years of experience in contract
These projects were the Pertamina E&P Tomori Sulawesi
mining, engineering and construction (E&C) and logistics
project, which contributed revenues of US$147.7 million,
services, PT Petrosea Tbk. (Petrosea) currently operates
the Eni Muara Bakau project which contributed US$61.6
five mining sites in Kalimantan. Petrosea also operates
million, and the ExxonMobil Cepu which contributed
a deepwater offshore supply base (POSB) located at
US$189.8 million representing 95.5% of all revenue for
Tanjung Batu, in West Balikpapan, Indonesia, which
the year.
provides services to major oil and gas clients including
Chevron, Halliburton, ExxonMobil, ENI Bukat, MI Swaco,
For 2015, with the drop in oil price and a number of Statoil, Niko Resources, Anadarko and Total (POSB is
Tripatra’s projects approaching completion, Tripatra further discussed in the Energy Infrastructure section).
is working closely with its clients to mitigate risk
and challenges arising from these developments.
Petrosea owns one jointly controlled company, namely
Additionally, Tripatra will look for new projects.
Santan Batubara, a coal mining joint venture with PT
Harum Energy Tbk. in which each party holds 50% Petrosea’s contract mining customers remain
of the shares. Petrosea divested its 47% ownership in vulnerable to dropping coal prices. Overburden
non-core business PT Tirta Kencana Cahaya Mandiri in removal volume increased at both the Kideco and ABN
2014. sites, with both mines increasing their coal production
output in 2014 to compensate for falling coal prices.
The provision of mining services and services for On the other hand, Santan Batubara suspended its
E&C projects is highly competitive with substantial mining activities focusing on long term preservation
international and domestic competitors. Petrosea of reserves until prices improve.
competes primarily on pricing, performance and
quality of services, including technology, safety and By contrast, non-contract mining revenue showed
skilled personnel, leveraging synergies from within stable growth, increasing more than 12.2% to
the Indika Energy Group. contribute US$53.7 million revenue for the year.
Petrosea continued to face persistent challenges in In 2015 Petrosea expects to continue to experience
2014 as its main contract mining clients looked for both price and margin pressures as a result of the
further ways to improve their cost structure in order prolonged coal market decline. Gunung Bayan
to sustain growth and/or operations in a flat pricing Pratama, a client of Petrosea since 1994, also decided
environment. Given that contract mining services to wind down coal operations in a select area due
accounts for roughly 60% to 70% of concession costs, to cost considerations. However, the drop in volume
the pressure remains on the latter to be able to achieve was offset by a new seven year contract with Bayan’s
tolerable margins. Tabang coal mine for a total of 72 million BCM
overburden removal.
As a consequence of the 2014 challenges in the coal
market, Petrosea revenues declined 3.3% to US$347.9 Going forward, in order better rebalance its revenue
million as coal producers reduced stripping ratios streams, the management has undertaken to further
as well as production volumes. Overall, overburden strengthen its non-coal mining business segment.
removal (OB) contract mining volumes declined by
7.0% from 141.1 million BCM in 2013 to 131.2 million
BCM in 2014.

PT MITRABAHTERA SEGARA SEJATI TBK.
Energy Incorporated in 1994, MBSS is an integrated one-stop

coal transportation and logistics company, which
provides coal handling management services from port,
Infrastructure
barging, river and sea based transportation to offshore
vessels using its floating crane systems. Leveraging
its in-depth industry knowledge accumulated over 20
years of operations, MBSS has built a customer portfolio
which includes long-term contracts with top tier coal
producers such as PT Kideco Jaya Agung, PT Adaro
Indonesia, PT Berau Coal, PT Kaltim Prima Coal as well as
coal end users such as PT Holcim Indonesia Tbk. and PT
Indika Energy has four Indocement Tunggal Prakarsa Tbk.
core assets within the As of December 31, 2014, MBSS operated a large and
varied fleet comprised of 76 barges, 84 tug boats, 7
floating cranes, 1 cement vessel and 1 support vessel.
Energy Infrastructure The entire fleet fulfills the Indonesian Classification
Bureau (BKI) requirements and part of the fleet also fulfills
business pillar as follows. international classification association requirements
namely Registro Italiano Navale (RINA), Bureau Veritas
(BV), Nippon Kaiji Kyokai (NK), American Bureau of
Shipping (ABS) and Germanischer Lloyd (GL) and can
therefore serve clients regionally.

MBSS was also affected by the slowdown in the coal
industry. MBSS’ margins came under pressure as MBSS CONTRACT VALUE IN 2014
intensified market competition resulted in lower unit
prices. Due to intensified competition and higher BACKLOG IN 2014 in million US$
available capacity in the market, MBSS adopted a price
rationalization approach in order to sustain existing Remaining
contracts up for renewals and moved to flexible Contract
Description of Project
contracts including spot and time charters. as of
31 Desember 2014
The reduction in tariffs put pressure on gross profit Barging 145.9
margins, which decreased from 40.2% to 32.1% or
Floating Crane 117.7
US$43.4 million in 2014.
Total 263.6
MBSS acquired several new coal producing clients within
Indonesia which were carefully selected for their strong
risk profile and their potential for growth.
In total, MBSS transported 52.6 million tons of coal in

2014, 11.3% lower than 2013. The main contributor to the
decline was the barging segment, which transported
31.1 tons compared with 38.4 tons in 2013. This was
partially offset by a 3.0% rise in volume contributed by
the floating crane segment from 20.9 tons to 21.5 tons
over the same period. As a result, barging revenues
decreased by 15.2% to US$93.1 million, while floating
crane revenues decreased by 1.0% to US$41.0 million,
for total revenue of US$134.1 million compared with CEP has been in stable operation for two years. In 2014
US$151.1 million in 2013. it initiated repayments interest of shareholder loans in
the amount of US$12.5 million. Moving forward it plans
Net profit therefore amounted to US$20.1 million, a to continue on with its periodic repayments. During the
47.4% decline over 2013, with a backlog of US$263.6 year, the availability factor was 79%, lower than 87% in
million as of year end. 2013 due to scheduled and unscheduled maintenance.
Out of total annual coal consumption of 2.7 million

CIREBON ELECTRIC POWER tonnes, 1.4 million tonnes were sourced from Kideco, an
Indika Energy associate, for synergies.
Cirebon Electric Power (CEP) is a 660 MW coal-fired
power generation plant (CFPP) located in Cirebon, West
Java. All of its output is sold to the State Electric Company PETROSEA OFFSHORE SUPPLY BASE
PLN under a 30-year Power Purchase Agreement (PPA)
starting from the date of commencement of operation Petrosea Offshore Supply Base (POSB) is a provider
of the plant, which was achieved on 27 July 2012. of offshore supply logistics services for international
and national oil and gas exploration and extraction
CEP was established in April 2007 by Indika Energy companies operating in the Makassar Straits. POSB is a
through its wholly owned subsidiaries Indika Power fully integrated, multi-functional supply base to support
Investments Pte. Ltd. and PT Indika Infrastruktur customer operations at Tanjung Batu, West Balikpapan
Investindo, together with Marubeni Corporation, Samtan in East Kalimantan. POSB maintained its revenue growth
Co. Ltd. and Komipo Global Pte. As of December 31, 2014, with a 7.3% increase to US$35.5 million.
Indika Energy owned a 19.99% indirect equity interest in
CEP. The successful establishment of CEP completes the In anticipation of future demand from global and local
Company’s establishment of a full presence along the clients, Petrosea has embarked on a programme to
coal value chain from resources ownership to electricity expand POSB with the development in Kariangau.
generation. It also supports the government’s plan to
boost domestic power generation.
KUALA PELABUHAN INDONESIA
The 660 MW CFPP uses supercritical technology for PT Kuala Pelabuhan Indonesia (KPI) is a subsidiary of
high efficiency, consuming less coal and producing PT Indika Logistic & Support Services. An operator of
fewer emissions. The power plant continues to operate marine fleets and ports, the company provides ship
above expectations in terms of availability factor and dock integrated operations, management, logistics,
performance, including completely recycling remnant maintenance and portside services.
ash, and gas emission records that are significantly
below the government and industry environmental
In 2014, KPI was able to maintain its strong relationship
limits. Since the commencement of operations, the CEP
with its key customers, thus maintaining its stable
net dependency capacity (NDC) tests have consistently
profitability.
met PPA requirements.
2014 FINANCIAL HIGHLIGHTS
Financial • Revenue increased to US$1,109.5 million, a 28.5% increase

over US$863.4 million reported in 2013.
• Gross profit amounted to US$161.0 million, a 16.7%
Review
decrease over US$193.4 million reported in 2013.
• Equity in profit of associates & jointly controlled entities
declined by US$29.0 million from US$102.5 million in
2013 to US$73.5 million in 2014, as a result mainly of
lower income derived from Kideco due to the global
decline in coal prices.
• Loss attributable to the Owners of the Company of
US$27.5 million, 56.0% decrease from US$62.5 million
loss reported in 2013.
• Cash and other financial assets were US$411.1 million
in 2014.
REVENUE
The Company’s revenue increased 28.5% to US$1,109.5
million against US$863.4 million reported in 2013 due
mainly to:
a. Improved revenues from Tripatra (+37.7%,

+US$114.3million YoY) increasing to US$417.7million,

mainly due to revenue realization from EPC projects, 7.0% YoY from 141.1 million BCM in 2013 to 131.2
namely 1) Pertamina Tomori Sulawesi (“Senoro”) million BCM in 2014 mainly contributed by Santan
US$147.7million (+US$74.4million, +101.4% yoy); 2) Batubara (Santan) and PT Gunung Bayan Pratama
ENI Muara Bakau (“Jangkrik”) US$61.6million (vs (GBP). Santan has suspended its mining activities
US$1 million in 2013) and 3) Exxon Mobile Cepu at Uskap block and significantly reduced stripping
(“Exxon”) US$189.8million (US$-2.4million, -1.3% ratio at Separi block since the start of 2014 due to
YoY). Collectively, the three EPC projects above soft global prices while GBP has started to wind
represented about 96% of Tripatra’s revenues in down production activity in 4Q14. However, non-
2014. Senoro and Jangkrik projects’ revenues have contract mining revenues arising from its oil and gas
been recognized in full in 2014 (vs. the start-up services and E&C businesses increased by 12.2% yoy
phase in 2013). The Exxon and Senoro projects are to US$53.7million.
nearing completion in 2015 and as such the rate of
b. MBSS revenues dropped to US$134.1 million (-11.3%,
revenue realization is expected to wind down for
US$-17.0 million YoY) vs. US$151.1 million in 2013
these projects.
with lower coal volume transported by barging
b. Other revenues increased to US$143.0 million in (-19.0% YoY from 38.4 million tons to 31.1 million
2014 compared with US$2.6 million in 2013, mostly tons in 2014). Transshipment volumes, however,
contributed by coal trading revenue, with coal improved marginally (+3.0% YoY from 20.9 million
trading volumes reaching 3.6 million MT in 2014 in 2013 tons to 21.5 million tons in 2014). The drop
versus 56 thousand tons in the previous year. in revenues from barging was partially mitigated by
MBSS offering time charters for its vessels in 2014,
However, the revenue gains above were offset by: which accounted for 15.5% of its total revenue.
a. Lower Petrosea revenues (-3.3%, US$-12.1million

COST OF CONTRACTS AND GOODS SOLD
YoY) to US$347.9 million primarily on the back of
lower contributions from contract mining (-5.7% YoY The cost of contracts and goods sold increased 41.6% to
from US$312.1 million in 2013 to US$294.2million US$948.5 million mainly as result of Tripatra’s business
in 2014), with overburden removal volume down expansion in various EPC projects, which accounted for
41.0% of the consolidated cost of goods sold in 2014. FINANCE COST
Further, increased sales of coal added US$136.7 million
in cost of contracts and good sold relative to 2013. Finance costs were down by 39.2% yoy to US$69.4million
due to the impact of the Liability Management Exercise
conducted in 2013 which led to 1) early bond redemption
GROSS PROFIT completed in November 2013, and 2) 2023 senior notes
interest expense of 6.375% p.a., delivering annual
As result of the above factors, Gross Profit decreased interest cost savings of around US$7.8million from 2014
to US$161.0 million, -16.7% YoY from US$193.4 million onwards.
reported in 2013. On gross margin basis, there was a
drop from 22.4% to 14.5% largely due to the impact of
(a) Tripatra’s expansion which altered both the revenue AMORTIZATION OF INTANGIBLE ASSETS
and cost mix (Tripatra has historically had the lowest
margin among all operating subsidiaries) and (b) a Amortization of Intangible Assets decreased from
highly competitive pricing environment faced by MBSS US$52.3 million (including impairment of US$14.1
and Petrosea, coupled with lower capacity utilization of million) in 2013 to US$36.6 million in 2014, since there
their operating fleets. was no more amortization made on intangible assets
related to West Kalimantan Project, which was fully
impaired in 2013. The amortization charge related to the
GENERAL AND ADMINISTRATIVE West Kalimantan Project in 2013 was US$1.2 million.
EXPENSES
General and administrative expenses were reduced by OTHERS - NET
14.5% (US$-22.4 million YoY) from US$154.6million in
2013 to US$132.1 million in 2014, mainly due to: group- Others expense-net was reduced 63.9% YoY to
wide manpower cost rationalization, which was initiated US$9.5million in 2014 due mainly to: 1) non-occurrence
in 2013, as well as on-going cost saving initiatives at both of exploration costs in 2014 and 2) lower forex loss as
holding and subsidiary levels. US Dollars strengthened against the rupiah and 3) gain
on sale of equipment (from a loss in 2013) which were
tempered by 4) tax penalties in MUTU and Petrosea
EQUITY IN NET PROFIT OF ASSOCIATES & 5) impairment of receivables in Petrosea from Santan
JOINTLY CONTROLLED ENTITIES and 6) final settlement by MBSS of past coal handling
undertaking.
Equity in net profit of associates & jointly controlled
entities declined 28.3% from US$102.5million in 2013
to US$73.5million in 2014 mainly due to lower earnings LOSS BEFORE TAX
derived from Kideco which accounts for a major portion
As a result of the above factors, loss before tax decreased
of the total equity in net profit.
by 94.6% to US$2.3 million in 2014 from US$42.5 million
in 2013.
• Kideco reported net profit of US$154.4 million (Indika
portion of US$71.0 million) on revenue of US$2,059.4million
in 2014. Net profit was down 27.3% YoY from US$212.2 INCOME TAX
million in 2013 due to lower realized ASP (US$57.2/ton
in 2013 vs. US$51.3/ton in 2014). Income tax increased by 150.5% from US$11.3 million in
2013 to US$28.2 million in 2014. The main contributors
• Lower contribution from Cirebon Electric Power (“CEP”) to the increase were (1) adjustment of US$9.1 million
to US$4.5million from US$7.0million in 2013 due to the recognized by Petrosea in 2014 in relation to prior years’
power plant’s scheduled and unscheduled maintenance corporate income tax audit, and (2) approximately US$4
shutdown in 2014. million paid by Tripatra on higher revenue.
• Suspension of operation of the 50% owned Santan
coal mine resulting in an US$4.0 million loss. Santan
halted its coal production in 2Q14 and focused on the LOSS ATTRIBUTABLE TO THE OWNERS OF
preservation of its reserves rather than to produce at THE COMPANY
current depressed prices.
Loss Attributable to the Owners of the Company
decreased by 56.0% from US$62.5 million in 2013 to
US$27.5 million in 2014. Current Assets

Current assets increased by 9.5% to US$831.4 million support coal trading and Petrosea’s activities and 2)
from US$759.3 million in 2013 mainly due to: trade accounts payable and accrued expenses (+US$7.9
million) resulting from higher coal trading activities.
1. Increase in Prepaid Taxes of US$22.6 million, mainly
from Tripatra of US$15.0 million, Petrosea of US$5.7
million related to its overpayment of corporate NON-CURRENT LIABILITIES
income tax in 2014 and IE of US$1.7 million. Non-current liabilities decreased by 3.7% to US$981.1
2. Increase in estimated earnings in Excess of Billings on million from US$1,019.1 million in 2013 due to payment
Contracts by US$18.2 million in Tripatra of lease liabilities and long-term loans by Petrosea and
MBSS.
3. Increase in Other Current Assets by US$18.2 million,
mainly due to increase in outstanding advance for
purchase of coal in IIC and IIR (+US$20.9 million). EQUITY
4. Increase in Trade Accounts Receivable, including
Equity decreased by 3.9% to US$912.5 million from
unbilled receivables of US$12.5 million, mainly due to
US$949.9 million in 2013 primarily due to Company’s net
coal trading activities in IIC and MUTU at the end of
loss for the year of US$27.5 million.
2014.
5. In line with the Company’s cash preservation objective,
cash and cash equivalents and other financial assets
increased by US$4.1 million to US$411.1 million at the
end of 2014.
PROPERTY, PLANT AND EQUIPMENT

(PPE)
The Company’s PPE decreased by US$35.3 million to
US$660.4 million in 2014, primarily as the result of
depreciation expense of US$101.8 million charged in
2014, offset by additional PPE of US$70.0 million of which
US$42.9 million was spent by Petrosea and US$16.2
million was spent for the Bintaro office building.
INTANGIBLE ASSETS
The Company’s Intangible Assets decreased 11.3% to
US$285.0 million from US$321.1 million in 2013, due
to amortization expenses charged in 2014 of US$36.6
million.
INVESTMENTS IN ASSOCIATES AND

JOINTLY CONTROLLED ENTITIES
Investments in Associates and Jointly Controlled Entities
decreased by US$21.4 million to US$286.3 million, mainly
due to lower net income reported by Kideco in 2014,
compared to dividends paid out in the same year.
CURRENT LIABILITIES
Current liabilities increased by 14.1% to US$396.7 million
from US$347.4 million in 2013 mostly resulting from 1)
short-term bank loans of US$48.5 million, mostly to
Business Prospects
& Key Risk Factors
ENERGY RESOURCES COAL PROSPECTS Under the new government, Indonesia has launched
a program to develop 35,000 MW of new power
The short and midterm global outlook for thermal coal generation capacity over the next five years, of which
points to sustained low coal prices ahead, primarily 50 percent are expected to be coal fuelled, as coal is an
related to the slowing rates of coal consumption in affordable and widely available energy source. Subject
China as the main importer of coal in Asia. In addition, to capacity constraints, this plan could support growth
ramped up global production in recent years has in domestic coal consumption and presumably coal
produced record output and further pressure on prices. Future prospects for coal in Indonesia are
prices. therefore promising, especially given projections of
medium term growth in global coal demand.
Asian economies continue to dominate the import
of thermal seaborne coal with China remaining the The IEA projects global coal demand to grow at an
largest importer, followed by India and Japan. China average rate of 2.1 percent per year through 2019 to
and India together accounted for the majority of reach 9 billion tons with growth in coal consumption
growth in global thermal coal demand from 2000 from India, the ASEAN countries and other countries
to 2014. However, China has begun systematically in Asia offsetting declines in Europe and the United
shifting away from coal as part of its government States. These factors suggest that the market will
policy to introduce cleaner energy sources, although eventually tighten and global coal prices will rise
Chinese demand is still expected to grow over the correspondingly, in line with the historically cyclical
next five years according to the International Energy price structure and demand curve of coal as a
Agency (IEA). India is now projected to overtake China commodity.
within the near future as the largest global importer of
coal, but its coal import growth in 2014 was less than
expected, and the outlook remains challenging for ENERGY SERVICES PROSPECTS
those in this energy sector.
With the new government stated policy of encouraging
offshore oil & gas exploration, the demand for
Indonesia is one of the biggest global exporters of
competent Engineering, Procurement & Construction
thermal coal, producing 435 million tonnes in 2014
(EPC) services in the oil & gas sector is expected to
of which 359 million was exported. Indonesia’s coal
experience strong growth. Tripatra is advantageously
exports are expected to remain approximately flat
positioned to capitalize on these opportunities, based
in 2015, as declining prices force smaller operators
on its prior track record and current capabilities.
to close, offsetting ramped up production by large
producers as they try to compensate for price declines
through higher volume. Despite the drop off in At the same time, the project management capabilities
demand for exports, Indonesian producers have that Tripatra developed may also be applied outside
in their favour growing domestic demand for coal. the oil & gas sector. Tripatra has successfully applied
In 2014, only 76 million tons or 17 percent of total these skills in to the telecommunications sector in the
production was distributed to the domestic market, past. Such opportunities therefore present possible
far below the allocated domestic market obligation of growth scenarios for Tripatra beyond its core customer
95.5 million tons according to figures from the Energy base.
and Mineral Resources Ministry’s mineral and coal
directorate general. This figure is expected to rise as Petrosea’s core coal mining business is expected to
more coal-fired power plants come on line, with the remain under pressure for the short term until coal
electricity sector absorption accounting for around 80 prices improve. Consequently, Petrosea’s margins
percent of total domestic allocation. are forecasted to remain under pressure for the

near future. However, as mentioned above, forecasted services on their own concessions without first
global as well as domestic coal consumption growth is obtaining ministerial approval, with a priority
expected to eventually lead to increased prices in the towards domestic contractors, labour, products
mid to long term, which could benefit Petrosea. and services. Changes in regulations may affect
Indika Energy’s business and ability to compete.
ENERGY INFRASTRUCTURE PROSPECTS

2. Financial Risk
The short term prospects of MBSS are related to coal as its Domestic, regional and global economic changes
core business. As long as coal prices remain depressed, as well as stringent controls on lending and
the coal logistics industry is likely to experience extreme investments caused by illiquid credit markets
pricing pressure and intense competition, with some and general tightening of credit in the financial
logistics providers even suspending operations. As a markets may affect Indika Energy’s working
result of these factors, MBSS’ margins are expected capital and borrowing abilities. Indika Energy
to remain under pressure for the immediate future, and its subsidiaries are also exposed to foreign
although it continues to enjoy some competitive currency risk.
advantage from its strong customer base and excellent
safety record.
3. Business Risk
Prospects for Petrosea Offshore Base (POSB) are linked (i) Business Risks Primarily Related to
to the possibility of higher demand from oil & gas clients Energy Resources
as discussed in the previous section.
• Coal Market Volatility Risk
Lastly, CEP’s success as a reliable power producer has Over the past decades, coal demand on the
created the possibility of expansion in the field of power world market has spurred the development
generation to capture opportunities arising from the of new mines and expansion of existing
government’s new 35,000 MW initiative. mines, increasing global production capacity.
Slower global demand growth for coal in
recent years has resulted in an oversupply,
RISK FACTORS affecting the prices in coal supply agreements
and consequently reducing the amount of
Indika Energy’s business is subject to various risk factors, dividend payments from Kideco to Indika
including but not limited to factors shown below. Energy.
Risks Related To Indonesia As has already been witnessed, the global

coal markets are sensitive to changes
Being incorporated in Indonesia with substantially all in coal mining capacity and production
of its assets and operations located in Indonesia, Indika output levels, and can adversely affect the
Energy can be adversely affected by future political, businesses of Kideco and Indika Energy.
economic, legal and social conditions in Indonesia, as The coal consumption of emerging markets
well as policies and actions adopted by the government where coal is a principal fuel is affected by
which can affect the results of operations and prospects. the economy, local environmental and other
governmental regulations, technological
Risk Factors Related To Energy Resources developments and the price and availability
of competing coal and alternative fuel
Indika Energy as an integrated energy company with supplies. The sustained global economic
core coal assets is vulnerable to certain risks associated slowdown has resulted in higher supplies of
with the energy sector, and in particular coal. coal and subsequently depressed coal prices.
1. Regulatory Risk Kideco maintains a focused end-user

customer base for a large portion of its
The framework governing Indonesian energy total coal sales and depends on the renewal
resources is subject to extensive regulation. The and extension of these supply agreements
new Mining Law regulates that local extraction with its customers to purchase coal on
of coal mined in Indonesia and Indonesian coal favourable terms. Kideco has significant
producers are restricted from engaging their reserves of bituminous and subituminous
subsidiaries or affiliates to provide mining coal which are an important fuel supply for

emerging markets like China, India, Africa businesses to risks associated with cost over-
and Southeast Asia. However, the demand runs, penalties, operating cost inflation and costs
from these markets has declined since 2011, associated with fluctuations in commodity prices
and further decline in demand from these and foreign exchange rates, changes in pricing
countries may affect dividend payments to fundamentals and cost estimates made between
Indika Energy. the time of submission of a bid and the time that
the bid is accepted by the customer, including
Furthermore, some of the coal reserves of labour availability and productivity, as well as
Kideco may be determined as being, or favourable supplier and third-party contractor
become, unprofitable or uneconomical to pricing and performance.
develop if there are unfavourable long-
term market price fluctuations for coal, or Petrosea’s mining operations are also subject to
significant increases in operating costs. environmental and other regulations which can
incur significant costs or liabilities which can
• Contractor Management Risk adversely impact the results of operations.
Kideco depends on independent contractors
to conduct its mining operations, and any (iii) Risk Factors Primarily Related to Energy
significant failure to deliver their obligations Infrastructure
will have a negative effect on dividend MBSS service contracts contain commercial
payments to Indika. In the same way, if agreements with set price and minimum
the amount Kideco has to pay for services tonnage requirements that can be terminated
exceeds the amount estimated in bidding following a force majeure event or a default
for fixed price work, Kideco will incur losses by the customer or MBSS.
on the performance of these contracts.
These delays and additional costs may be Indonesia’s lack of consistent energy
substantial, and Kideco may not be able to infrastructure spending in the energy sector
recover these costs from its customers or may has led to a power crisis. There is increased
be contractually required to compensate its demand for coal-fired plants but state-owned
customers for these delays. and other independent power producers
may not complete their scheduled new coal
• Weather Risk power plant generation projects on time, and
Severe weather may affect or disrupt this may lead to supply shortages.
operations in the field, including coal mining
at Kideco, and fleet movements at MBSS, 4. Environmental Risk
resulting in lower productivity and lower
revenues. Although Indika Energy Group companies take
every measure to mitigate environmental risks,
operations of Indika Energy Group companies
(ii) Risk Factors Primarily Related To Energy Services have the potential to substantially impact the
Tripatra and Petrosea provide energy services environment or cause exposure to hazardous
which are primarily dependent on capital substances, which could result in material
spending by large coal, mineral, infrastructure, liabilities.
and oil and gas companies, including national
and international companies, all of which may be Growing environmental compliance costs,
directly affected by trends in global and regional if materially increased by new issuance laws
coal, mineral, oil and gas prices. Historically, and regulations, as well as the ongoing mine
the markets for coal and oil and gas have been reclamation and rehabilitation obligations can
volatile and volatility is likely to continue in the also adversely affect all mining businesses.
future.
5. Labor & Community Risk
The award of new contracts to Tripatra and
Petrosea depends on successful bidding The management strives to nurture good
processes which are subject to financing and relationships with employees in the field,
other contingencies. A significant portion realizing that a shortage of skilled labor or labor
of energy services projects are fixed-price disputes may pose a risk in achieving high levels
contracts, which can expose the energy services of productivity at competitive costs. Similarly,
intensive consultation with local communities
is carried out to create goodwill and diminish
the risk of social conflict.
6. Other Risks
Indika Energy’s acquisition strategy to expand
operations by complementing existing
businesses depends on the successful
integration of acquired companies, businesses
and properties, and the creation of synergies,
further growth opportunities and other
benefits from such acquisitions. Difficulties in
integration and project delays have a material
adverse effect on the Company’s liquidity and
capital resources.

Information and
Communication Technology
Indika Energy’s Information and Communication Information, Communication and Technology
Technology (ICT) division is focused on improving requirements in accordance with agreed upon Service
business information processes for decision-making as Level Agreements (SLAs). These SLAs were established
well as increasing efficiency. Where possible, technology as a mechanism to ensure service quality and
is harnessed and applied across the value chain to benchmarking with industry standards, and to ensure
produce synergies in applications and infrastructure, that ICT provides an enabling role as a Shared Services
towards operational performance and strengthened Organisation (SSO) that supports the Company and its
control. business units. These Service Level Agreements (SLA)
cover five Service Portfolios consisting of:
ICT FRAMEWORK • Data Center

The ICT framework is depicted clearly by the “ICT • Network and Communications
House” illustration. The foundation represents ICT
• Application Development
infrastructure, which facilitates a standardised and
secure infrastructure environment for the Company’s • Application Support and
overall business applications. The three pillars reflect
• End User Management.
application systems specific to each business unit,
while the roof component represents a corporate-
wide initiative of portals and dashboards comprising To monitor the progress of various ICT projects and to
the Enterprise Resources Planning (ERP) and Human ensure that Service Levels are being met, ICT provides
Resources Management System (HRMS). a monthly report to each business unit detailing
the progress and performance targets for all service
portfolios. This helps ICT to identify and understand
OVERSIGHT users’ needs, and develop solutions that can be
implemented for tangible results.
The ICT Steering Committee provides high level direction,
leadership and strategy for the ICT departments, and In addition, user satisfaction is evaluated yearly by an ICT
oversees the efficiency and effectiveness of ICT as a Customer Satisfaction Survey to document areas of user
Shared Services Organisation (SSO) as well as policy satisfaction or otherwise.
compliance related to the Company’s goals and
objectives. As such, the ICT Steering Committee is in
charge of setting ICT policies, priorities, and project ACTIVITIES IN 2014
investment, as well as execution of plans in accordance
with Indika Energy’s business needs and requirements. In 2014, the ICT Team undertook the following activities:
• The ICT team continued to focus on the roof component

SERVICE LEVEL AGREEMENTS (SLA) & of the ICT House, developing management dashboards
USER SATISFACTION and successfully completing a Group wide ERP system
implementation running on SAP, the system is called
As an internal service provider, ICT provides a range of INSPIRE (Integrated Strategic Platform for Infrastructure,
services which includes analysis, design, preparation, Resources and Energy Services). INSPIRE aims to improve
operation, support and maintenance for the Group’s efficiency and decision-making capabilities across the

Dashboard & Portals:
Enterprise Resources Planning - Human Resources Management System - Corporate Wide Initiative
RESOURCES SERVICES INFRASTRUCTURE
Mineral Contract Mining Logistic Solutions

Resources Solutions Power & Gas
Solutions EPC Solutions Solutions
O&M Solutions
BUSINESS INITIATIVES
Technology-Infrastructure and System Standardization

Data Center Centralization - Asset and License Management
INFRASTRUCTURE & SERVICES
Group through a more integrated and robust ERP system this facility, enabling seamless handling of increasing
that covers finance and accounting, procurement, project transaction volumes as required.
management, asset management, consolidation and
• To improve connectivity between offices of the Company
management reporting. Throughout the project, the
and its business units including remote site offices, ICT
INSPIRE Project Management Office (PMO) managed
uses bandwidth management tools to ensure optimum
the progress and issues related to business processes
usage based on service categories.
and design, data conversion , data migration, technical
infrastructure, change management and realisation of • The ICT team maintained and enhanced the Engineering
benefits. Document Management System, Material Tracking
System, Operations Database (OpsDB) and others
• The ICT team continued to install, develop, maintain and
critical applications essential to the smooth running
support its infrastructure covering the data center facility,
of operations.
network/data communication systems as well as system
software, and hardware. The infrastructure environment at • To safeguard Company information, ICT has established
the Data Center was built using virtualisation technology encryption technology, ensuring the data or information
that enables usage of shared computing resources based disseminated can only be readable by those for whom
on demand. As an example, the ERP system runs on it is intended.
Corporate Governance
Overview
As a listed Company on the Indonesian Stock Exchange 2014 was a year full of challenges for companies
(IDX), the Company continues to be fully committed to engaged in the coal sector in Indonesia. Companies
consistently and continously applying and improving are required to be able to manage the challenge to
good corporate governance implementation in keep running their businesse in a healthy and strong
supporting the Company to face various in challenges risk management and is based on the principles of
in 2014. corporate governance.
The strategic decisions taken by the Board of Directors

and Board of Commissioners of the Company always I. PRINCIPLES
give consideration to, and ensure the implementation
of, the principles of transparency, accountability,
Transparency
responsibility, independency as well as fairness and To maintain objectivity in conducting its business,
equality in conducting activities ethically in line with the Company must provide all the necessary material
the Company’s values and Code of Business Conduct, and relevant information to the shareholders and
while taking into consideration the interests of other stakeholders by facilitating timely access to information,
stakeholders. in a meaningful and easily comprehensible manner.
The Company strives to tangibly and seriously comply The information provided is not limited to information
with all prevailing regulations and laws in Indonesia, as required by prevailing laws and regulatory bodies,
including those implemented by the Financial Services but extends to include all necessary information
Authority, the Indonesia Stock Exchange, regulations required by the shareholders to make informed
of the places in which the Company carries out its decisions. Information which is deemed by
business activities, as well as other laws. prevailing laws and regulations to be proprietary and
confidential shall not be disclosed, in accordance with
Our implementation of corporate governance is the confidential secrets and the rights assigned to
supported and reflected by the legitimation and clear each position.
separation of the organs of the Company such as the
Board of Commissioners, Board of Directors and other
Accountability
units at management level that is clearly related to the
duties and responsibilities, independency, and tenure The Company is managed properly in a measurable
of committees under the Board of Commissioners such manner in line with the interests of the Company with
as the Audit Committee, Good Corporate Governance due respect to the interests of the shareholders and
(GCG) Committee, Human Capital Committee, and stakeholders. The Company strives to be accountable
the Risk and Investment Committee are part of our for its performance in a transparent and fair manner, in
commitment to implementing solid good corporate order to achieve and maintain improved performance.
governance. This ensures compliance with prevailing
laws and regulations in all operational aspects of the
Company, avoids conflicts of interests, establishes
Responsibility
clarity as to internal reporting and the functions of the In its activities, the Company always adheres to the
Company’s organs, and ensures that corporate social principles of prudence and ensures compliance with
responsibility is properly executed, as part of our prevailing laws and regulations, Articles of Association,
commitment to implement good and solid corporate and prevailing corporate practices, as well fulfilling its
governance. corporate social responsibility towards the community
and environment at large in order to maintain the long
term sustainability of its business.

Independency 3. Approved the authorization of the Board of
Commissioners to appoint a Public Accountant in
The Company is managed independently in order to order to examine the books of the Company for the
avoid domination and intervention by certain parties. year ended December 31, 2014, and gave power and
authority to the Board of Directors of the Company to
The Company organs, namely the General Meeting of establish remuneration and other conditions related
Shareholders, Board of Commissioners and Board of to the designation of Certified Public Accountant.
Directors are permitted to perform their functions and
4. Approved the appointment of Eddy Junaedy Danu
duties in accordance with the Articles of Association and
as an Independent Director of the Company and
applicable laws and regulations, free from domination
Richard Bruce Ness as a Director of the Company.
and conflicts of interest or the intervention and influence
Each will continue his term of service as a Director
of third parties, thus ultimately enabling objective and
in accordance with his appointment by the General
accurate decision-making.
Meeting of Shareholders in 2013 which will expire at
the close of the General Meeting of Shareholders in
Fairness and Equality 2015.
In its business activities, the Company prioritizes the 5. Reaffirmed the provision of power and authority
interests of the shareholders and other stakeholders to the Board of Commissioners of the Company in
based on the principles of fairness and equality. connection with the implementation of the Employee
and Management Stock Option Plan (EMSOP).
II. GENERAL MEETING OF All the actions approved in the Annual GMS have been
SHAREHOLDERS (GMS) implemented by the Company.
The General Meeting of Shareholders possesses special

authority that is not possessed by either the Board of III. BOARD OF COMMISSIONERS
Commissioners or the Board of Directors. Throughout
2014, the Company did not hold any Extraordinary The Board of Commissioners is an organ of the company
General Meetings of Shareholders. that is tasked with supervision of the management’s
policies, the general execution of management both
The Company held its Annual General Meeting of regarding the Company as well as the businesses of
Shareholders (AGMS) in Jakarta on 14 May 2014 in Company, and to advise the Board of Directors. The Board
accordance with the Company’s Articles of Association of Directors carried out their tasks and responsibility as
and the prevailing laws and regulations. The AGMS counsel in the interests of the Company.
was attended by the shareholders or their authorized
representatives. As of 31 December 2014, the Board of Commissioners
comprised six members, of which two are Independent
Items approved by the Annual GMS included among Commissioners.
others:
a. Structure and Membership of the Board of
1. Received the Annual Report, Accountability Report Commissioners
of the Board of Directors and Supervisory Board
of Commissioners relating to the Company’s Members of the Board of Commissioners are appointed
management and matters related to finance for the by a GMS until the closing of the second Annual GMS
fiscal year ended December 31, 2013. after their appointment, without prejudice to the right
of the GMS to dismiss them at any time. The composition
2. To approve the Financial Statements of the Company, of the Board of Commissioners was established at the 14
including the Balance Sheet and Profit and Loss May 2014 Annual GMS and has not changed since, with
Account for the year ended December 31, 2013, giving composition as follows:
full exemption (acquit et de charge) to the Board
of Commissioners with regard to all management
President Commissioner : Wiwoho Basuki Tjokronegoro
actions taken by the Board of Directors and to the
Board of Commissioners for the supervisory duties of Vice President Commissioner : Agus Lasmono
the Board of Commissioners in 2013, insofar as these Commissioner : Indracahya Basuki
actions are reflected in the Financial Statements and Commissioner : Pandri Prabono-Moelyo
Annual Report for the financial year 2013. Independent Commissioner : Anton Wahjosoedibjo
Independent Commissioner : Dedi Aditya Sumanagara

b. Duties and Responsibilities especially in the Capital Market, with a total of six Board of
Commissioners members at the present. Of the Board of
In conducting its supervisory duties, the Board of Commissioners member, two members are Independent
Commissioners holds tightly to the GCG principles Commissioners, namely Mr. Wahjosoedibjo and Mr. Dedi
and continuously implements GCG within the Aditya Sumanagara. The Independent Commissioners
Company. In implementing the principles of GCG, the of the Company are not related by blood, affiliation
Board of Commissioner ensures that the policies and or financial ties to other members of the Board of
management of the Board of Directors have complied Commissioners, the Board of Directors or the controlling
with prevailing laws and regulations and the Company’s shareholders, so as to maintain the independence of
Articles of Association, and have obtained the necessary the Board of Commissioners’ supervisory function and
approvals as may be required from time to time. ensure that the check and balance mechanism functions.
In carrying out its tasks, the Board of Commissioners
The Board of Commissioners is required to conduct their takes care to refrain from executive tasks, and remain
tasks independently and is also required to ascertain firmly in its supervisory function.
the implementation of the corporate governance of
the Company. In conducting its tasks, the Board of d. Execution of the Tasks of the Board of
Commissioners shall provide advice and input to the
Board of Directors in the implementation of policies
Commissioners
and management, and shall report to the GMS on the As part of its responsibilities, the Board of
execution of its duty to supervise the management of Commissioners holds meetings to discuss issues related
the Company. to the management of the Company, and to evaluate
the performance of the Company and the audit report
In conducting its supervisory duties, the Board of carried out by the Audit Committee. These meetings are
Commissioners’ duties includs, among others, the held to ensure that the goals and performance of the
following: Company with regard to strategic planning, finances,
acquisitions, divestments, operations, risk management
1. To ensure that the Company stays aligned with its and corporate governance can be achieved in line with
set and approved vision, mission, as well as the the targets of the Company.
destination statement;
2. To provide feedback and advice on work plans and Board of Commissioners meetings may be held at any
the annual budget prepared by the Board of Directors time as deemed necessary by one or more members of
and to ratify them based on the Company’s Articles of the Board of Commissioners, or upon written request
Association; from one or more members, or upon the written request
of one or more of the shareholders who jointly represent
3. To monitor the Company’s development activities; one tenth or more of the total shares with voting rights.
4. To supervise the implementation of the Company’s Board of Commissioners meetings are deemed legitimate
business strategy and investments, as well as and entitled to make legally binding decisions only if
assessing risk management of the investments that more than half of the Board of Commissioners members
will be or have been conducted by the Board of are either present or represented in the meeting.
Directors;
Resolutions of the Board of Commissioners meetings
5. To review, analyse and sign the annual report must be passed in consensus. Failing to achieve such
prepared by the Board of Directors; and consensus, the resolution shall be passed by voting
6. To ensure the implementation of GCG practices based based on affirmative votes with at least more than
on the recommendations from the GCG Committee. half of the total votes cast at the meeting including
the votes of the President Commissioner and Vice
Every member of the Board of Commissioners shall be President Commissioner, provided that the resolutions
well intentioned, prudent, responsibly implement its of this Board of Commissioners meeting must be signed
supervisory duties and provide advice to every member by the President Commissioner and Vice President
of Board of Directors in the interests of the Company Commissioner.
and in accordance with the Company’s purposes and
objectives. The Board of Commissioners may also pass valid
resolutions without convening a Board of Commissioners
meeting, provided that all members of the Board of
c. Independence of Commissioners
Commissioners have been notified in writing and all
The composition of the Board of Commissioners of members of the Board of Commissioners have granted
the Company fulfils prevailing rules and regulations, their approval for the written proposals as evidenced by
their signed consent. The resolutions passed in such a Remuneration Structure Board of Commissioners
manner shall have the same legal force as the resolutions
lawfully passed at the Board of Commissioners meetings. Details of the compensation awarded to the Board of
Commissioners of the Business Group are as follows:
Meeting Frequency and Attendance in US$
The Board of Commissioners held five meetings in 2014 DESCRIPTION 2014 2013
on the dates listed with attendance as shown in the Short term benefits 976,768 1,367,881
accompanying table below:
1. 10 March; h. Training for the Board of Commissioners

2. 28 April; Throughout 2014, members of the Board of
3. 23 July; Commissioners did not participate in any training or
competency development programs.
4. 28 October; and
5. 3 December.
IV. COMMITTEES ACCOUNTABLE TO THE
MEETING FREQUENCY
AND ATTENDANCE To support the Board of Commissioners in performing
its supervisory duties effectively, it is supported by
NAME NO. OF ATTEND- ABSENCE %
MEETINGS ANCE ATTEND- four committees, namely the Audit Committee, GCG
ANCE Committee, Risk and Investment Committee and Human
Wiwoho Basuki Tjokronegoro 5 5 0 100% Capital Committee.
Agus Lasmono 5 4 1 80%
Indracahya Basuki 5 5 0 100% a. AUDIT COMMITTEE
Pandri Prabono-Moelyo 5 5 0 100% The Board of Commissioners has established and
Anton Wahjosoedibjo 5 5 0 100% appointed the Audit Committee in compliance with
prevailing laws and regulations, towards enhancing the
Dedi Aditya Sumanagara 5 5 0 100%
implementation of GCG practices within the Company’s
operations as well as expansion activities in order
to promote openness and objectivity in addressing
e. Performance Assessment Process for the Board of
issues related to the internal control system, financial
Commissioners statements and external auditors. The Audit Committee
Assessment of Board of Commissioners’ performance is is governed by the Audit Committee Charter which is
conducted based on evaluation criteria that is related to available on the Company’s website.
the execution of the Board of Commissioners’ tasks and
responsibilities. i) Structure, Membership and Profiles of the Audit
Committee
Parties carrying out the Performance Assessment of the
During 2014, the Audit Committee was
Board of Commissioners
chaired by an Independent Commissioner,
Anton Wahjosedibjo, with two independent
The Board of Commissioners in 2014 submits a report on professional members who have the appropriate
their performance to the GMS qualifications and extensive financial experience,
namely Maringan Purba Sibarani and Deddy
f. Remuneration of the Board of Commissioners Harijanto Sudarijanto.
Procedure for Determination of Remuneration of the Based on Bapepam Regulation Number: IX.I.5 on
Board of Commissioners Remuneration of members of the Guidelines On Establishment And Working
the Board of Commissioners is established with reference Implementation Of Audit Committee, which is
to the internal policies of the Company, prevailing rules was an Attachment of Decision of the Chairman
and regulations and standards in related industries, that of Bapepam Number: Kep-29 / PM / 2004 dated
is approved by the GMS. 24 September 2004, as amended to become
the Attachment of Decision of the Chairman of
Bapepam-LK No. 643 / BL / 2012 dated 7 December

2012, the term of service for Audit Committee • The adequacy of internal controls: The Audit Committee
members should not be longer than the term of oversees the effectiveness of the internal control
office of the Board of Commissioners as stipulated system established by the management. In fulfilling
in the Articles of Association, and they may be only this responsibility, the Audit Committee is assisted by
be reelected for one subsequent term. the Internal Audit of the Company;
• Reliability of the Company’s financial information;
The term of office of the Chairman of the Audit
Committee and its members is valid until the close • Regulatory compliance: The Audit Committee ensures
of the Annual General Meeting of Shareholders of that the Company complies with applicable laws and
the Company in 2015. This is their second period regulations pertaining to the capital market and other
of tenure as Chairman and members of the Audit prevailing laws related to the Company’s operations;
Company of the Company.
• Reviewing the performance of the external auditor:
The Audit Committee reviews the financial results of
The profiles of the members of the Audit
the Company to ensure the reliability of the financial
Committee are as follows:
information. In conducting its duties, the Audit Committee
has the authority to review whether the quarterly financial
1. Chairman: Anton Wahjosoedibjo statements correctly represent real business results and
For the profile of Mr. Anton Wahjosoedibjo, significant fluctuations, if any, consistent with the overall
please refer to the profiles of Board industrial or economic conditions;
Commissioners & Board of Directors (page XX). • Effectiveness of the internal auditor: The Audit Committee
approves the internal auditor’s work program and the
2. Member: Maringan P. Sibarani outcomes of internal audits conducted to ensure that the
Age 71, formerly Director of PT Indofood Sukses recommendations of the internal auditor on significant
Makmur Tbk for 9 years and a Senior Partner of internal control shortcomings are addressed.
Arthur Andersen for 16 years. Graduated from
the Faculty of Economics at the University iii) Activities of the Audit Committee
of Indonesia, major in Accounting. He is the
The following activities were carried out in 2014:
Head of the Accounting Department at the
Faculty of Economics, Trisakti University, and
a Lecturer for the Professional Education for 1. Meetings with Public Accountant Firm Osman
Accountant Program at the Trisakti University Bing Satrio & Eny (KAP Deloitte) to discuss the
and Parahyangan University. audit results for the Company’s Consolidated
Statement for the year ended 31 December
2013;
3. Member: Deddy Harijanto Sudarijanto
2. Quarterly meetings to discuss the quarterly
Age 42, currently a Vice President Director of PT
financial results of the Company;
Net Mediatama Indonesia, President Director
of PT Polypet Karyapersada (since 2004) 3. Meetings with Internal Audit to discuss, among
and PT Rekamitrayasa Komunikatama (since others, significant findings and cases, standard
2003), and Director of PT Indika Multimedia operating procedures and work plans.
(since 2001). Previously he also held positions
as Commissioner of MBSS (2010–2013) and
CEO of PT Petrokimia Nusantara Interindo. He Meeting Frequency and Attendance
graduated from Northeastern University with In 2014, the Audit Committee of the Company
a BSc. in Industrial Engineering in 1993 and an held four meetings on the following dates:
MSc. in Industrial Management from Stanford
University in 1994.
1. March 10;
ii) Primary Responsibilities of the Audit Committee 2. April 28;
As the independent advisor of the Board of 3. July 22; and

Commissioners, the primary responsibility of the 4. October 28.
Audit Committee is to ensure that the appropriate
processes are in place to support the Board of
Commissioners in fulfilling its responsibilities to
exercise due care, diligence and skill specifically
in relation to:
With attendance as shown in the following tabel: 2. Member: Anton Wahjosoedibjo
For the profile of Anton Wahjosoedibjo, please
MEETING FREQUENCY refer to the profiles of Board Commissioners &
AND ATTENDANCE Board of Directors (page 45).
MEETINGS ANCE ATTEND- 3. Member: Pandri Prabono-Moelyo
ANCE
For the profile of Pandri Prabono-Moelyo,
Anton Wahjosoedibjo 4 4 0 100% please refer to the profiles of Board
Maringan Purba Sibarani 4 4 0 100% Commissioners & Board of Directors (page 45).
Deddy H. Sudarijanto 4 4 0 100%
ii) Duties and Responsibilities
b. GCG COMMITTEE The GCG Committee is responsible for the
development of internal systems within the
The GCG Committee has been established to assist the Company to ensure implementation of GCG
Board of Commissioners with oversight of management principles, including principles of transparency,
actions performed by the Board of Directors in accordance accountability, responsibility, independence,
with the Articles of Association and prevailing laws and fairness and equality in the management
regulations, particularly with regard to implementation and supervision of business units within the
of GCG principles within the Company. Company. The implementation of GCG principles
in a firm, consistent and sustainable way will
improve the performance of the Company, the
i) Structure, Membership and Profile of the GCG Committee
investment value of its shareholders, the role of
The GCG Committee currently consists of one the Company in national economic development,
chairman and two members. and the welfare of the Company’s employees and
stakeholders, including communities in locations
The term of office of the Chairman of the GCG where the Company carries out its business
Committee and its members is valid until the close activities.
of the Annual General Meeting of Shareholders
of the Company in 2015. The GCG Committee shall ensure that the Company
consistently implements a culture of good
The members of the GCG Committee in 2014 business ethics and good working environment
were as follows: in line with the vision, mission and values, action
plans, programmes, and good behaviour; that
1. Chairman: Arief T. Surowidjojo can be a model for all organs within the Company
in achieving the main objectives in a measured,
Age 61, is one of the founding partners of
efficient, effective and sustainable manner. In
Lubis Ganie & Surowidjojo Law Firm. He has
implementing its duties and responsibilities, the
been practicing law for the last 38 years and
GCG Committee shall ensure that the Company
represented and has advised the Indonesian
has a clear reference that can be implemented
government, national and multi-national
in its efforts to comply with any and all legal
companies in various complex corporate
and administrative obligations that must be
legal issues and transactions and commercial
fulfilled by all companies in Indika Energy Group,
litigation cases. His expertise focuses on
pursuant to prevailing laws and regulations.
corporate finance, project finance, corporate
restructuring, assets recovery, merger and The GCG Committee is also responsible for
acquisition, governance and commercial the presence, existence and development
litigation. He has been a Senior Lecturer in of the Company which brings benefits to all
business contract drafting at the Faculty of Law stakeholders of the Company through its
University of Indonesia since 1990. He earned a corporate social responsibility and environmental
Bachelor of Law Degree from the University of programmes as required by prevailing laws and
Indonesia in 1977, and a Master Degree in Law regulations, as well as through programmes
from the University of Washington, Seattle, that are proactively carried out by the Company
USA in 1984. on its own. In addition, the GCG Committee has

an obligation to conduct regular reviews and i) Structure, Membership and Profiles of the Risk and
provide input on corporate social responsibility Investment Committee
plans, programmes, and implementation.
The Risk and Investment Committee currently
To carry out its abovementioned responsibilities, consists of one chairman and three members.
the GCG Committee is required to formulate
a number of related guidance documents for The term of office of the Chairman of the Risk &
the Board of Commissioners and the Board Investment Committee and its members is valid
of Directors of the Company, and update the until the close of the Annual General Meeting of
documents from time to time. Shareholders of the Company in 2015.
The members of the Risk and Investment

iii) Activities Committee in 2014 were as follows:
GCG Committee has asked the Company to prepare
a Compliance Report and has met with the relevant 1. Chairman : Wiwoho Basuki Tjokronegoro
parties within the Group to ensure that Indika Energy 2. Member : Agus Lasmono
and its subsidiaries have effectively implemented GCG,
and to discuss risks within the Group that are related 3. Member : Indracahya Basuki
to governance throughout 2014. The discussions 4. Member : Dedi Aditya Sumanagara
focused on the implementation of the ASEAN Corporate
Governance Scorecard, whistleblowing policy, The profiles of the Chairman and Members of the
implementation of corporate governance and Company Risk and Investment Committee may be viewed
activities related to governance. in the Profiles of the Board of Commissioners &
Board of Directors (page 45-57).
Meeting Frequency and Attendance

ii) Main Responsibilities
During 2014, the GCG Committee held three meetings
The Risk and Investment Committee’s main
on:
responsibilities and duties are to assist the Board
of Commissioners in its supervisory duties related
1. May 16; to the Company’s business strategy, investments
2. July 22; and and risk management of investments that will
be or have been conducted by the Board of
3. October 28. Directors.
MEETING FREQUENCY In implementing its main responsibilities, the

Risk and Investment Committee shall review the
AND ATTENDANCE business strategy as well as any investments and
NAME NO. OF ATTEND- ABSENCE % the risks thereof. While the primary responsibility
MEETINGS ANCE ATTEND-
ANCE for implementing the business strategy rests
with the Board of Directors, the responsibility of
Arief T. Surowidjojo 3 3 0 100%
the Risk and Investment Committee is to provide
Anton Wahjosoedibjo 3 3 0 100% recommendations on the business strategy to
Pandri Prabono-Moelyo 3 3 0 100% be taken by the Board of Directors and to review
the implementation thereof, and to advise the
Board of Commissioners on matters related to
c. RISK AND INVESTMENT COMMITTEE the strategic business plan and annual business
plan and/or business policy of the Company.
The Risk and Investment Committee is responsible for
assisting the Board of Commissioners in performing their In addition, the Risk and Investment Committee
supervisory duties and functions related to the business reviews, identifies and analyses risk and return
strategy and investments made by the Company, and all from proposed investments, material projects
aspects of risk incurred due to these investments as well and/or corporate actions, and reviews the
as the possibility of risk mitigation action. implementation thereof. In carrying out its duties
and responsibilities, the Risk and Investment
Committee shall report to the Board of The term of office of the Human Capital
Commissioners with reference to the principle of Committee and its members is valid until the close
confidentiality and will only disclose information of the Annual General Meeting of Shareholders
to members of the Risk and Investment of the Company in 2015.
Committee and the Board of Commissioners.
The members of the Human Capital Committee
in 2014 were as follows:
iii) Risk and Investment Committee Activities
The Risk and Investment Committee has reviewed 1. Chairman : Agus Lasmono
both new and existing investments of the
Company as well as possible risks related thereto, 2. Member : Wiwoho Basuki Tjokronegoro
and has discussed on draft Risk and Investment 3. Member : Indracahya Basuki
Committee Charter.
The profile of the Chairman and Members of the
Meeting Frequency and Attendance of the Risk Human Capital Committee may be viewed in
and Investment Committee the Profiles of Board Commissioners & Board of
Directors (page 45-57)
In 2014, the Risk & Investment Committee held
four meetings on the following dates:
ii) Main Responsibilities of the Human Capital Committee
1. 10 March The Human Capital Committee has overall
responsibility for approving and evaluating
2. 28 April
the appointment, performance targets,
3. 23 July; and compensation and plans for Senior Executives and
Company Executives, as well as the Company’s
4. 28 October.
plans related to performance targets, succession
plans for Senior Executives and Executives,
With attendance as shown in the following table:
workforce management, as well as human
resources governance, policies and programs
MEETING FREQUENCY of the Company that affect Senior Executives,
AND ATTENDANCE Executives, officers and other employees of the
Company. The Human Capital Committee shall
MEETINGS ANCE ATTEND- also ensure that the Company complies with
ANCE prevailing laws and regulations related to human
Wiwoho Basuki Tjokronegoro 4 4 0 100% capital.
Agus Lasmono 4 3 1 75%
In implementing its responsibilities, the Human
Indracahya Basuki 4 4 0 100% Capital Committee has the authority to establish
Dedi Aditya Sumanagara 4 4 0 100% general Company policy related to human capital
in consultation with the Senior Executives. In
addition, in line with new regulations published
e. HUMAN CAPITAL COMMITTEE by the Financial Services Authority at the end of
2013, the Human Capital Committee nominates
The Human Capital Committee was formed by the Board and recommends replacements, reappointments
of Commissioners to assist with its tasks, authority and or dismissals of Senior Executives and Executives
responsibilities in overseeing management actions to the Board of Commissioners. With regard to
taken by the Board of Directors in accordance with compensation benefits in the Company, the
the Articles of Associations and prevailing laws and Human Capital Committee, in consultation with
regulations. The Human Capital Committee shall support the Senior Executive, establishes the Company’s
decision-making processes related to human capital general compensation philosophy, principles
management to ensure that the Company stays aligned and practices, and oversees the development
with the set and approved vision, mission, destination and implementation of compensation, benefits
statement and strategy. and perquisite programs.
i) Structure, Membership and Profiles of the Human Capital The Human Capital Committee also has the
authority to oversee the Company’s long term,
Committee
short term, annual or other periodic performance
The Human Capital Committee consists of one goals in relation to the performance target of the
chairman and two members. Senior Executive and Executives and oversees

the Company’s Senior Executive succession plans a) Structure and Membership of the Board of
and practices. One of the key roles of the Human Directors
Capital Committee is to oversee employee
engagement levels in the Company, as employees The composition of the Board of Directors as of 31
are a crucial asset in our Company. December 2014 is as follows:
The Human Capital Committee plays an important President Director : Wishnu Wardhana
role in overseeing the level of employee
engagement within the Company, as employees Vice President Director : M. Arsjad Rasjid P.M.
are a crucial asset to the Company.
Director : Azis Armand
iii) Human Capital Committee Activity Director : Rico Rustombi
In 2014 the Human Capital Committee oversaw
the Company’s long term, short term, annual or Director : Joseph Pangalila
other periodic performance goals in relation to
the performance target of the Senior Executive Director : Richard Bruce Ness
and Executives and oversees the Company’s
Senior Executive succession plans and practices. Independent Director : Eddy Junaedy Danu
The Human Capital Committee also monitored
employee engagement levels in the Company. b. Duties and Responsibilities of the Board of
Directors
Meeting Frequency and Attendance of the
Human Capital Committee In executing its responsibility to manage the Company,
the Board of Directors shall ensure that in carrying out
In 2014, members of the Human Capital day-to-day business activities, the implementation of
Committee frequently met informally to discuss policies, principles, values, strategies, aims and targets
matters related to human capital. are in compliance with prevailing laws and regulations
as well as the Company’s Articles of Association, and
has obtained necessary approvals as may be required
V. BOARD OF DIRECTORS from time to time. The Board of Directors shall perform
The Board of Directors is the organ of the company that is its fiduciary duties whilst supervised and advised by
fully authorized and responsible to manage the company the Board of Commissioners and the Committees
and is entitled to represent the company both in court accountable to the Board of Commissioners, and shall
and outside of court, in the interests of the shareholders report to the GMS on the duties entrusted to it of
and the stakeholders of the Company. In conducting managing the Company.
its tasks, the Board of Directors is accountable to the
GMS. The authority and responsibilities of the Board of In assisting the management and operations of the
Directors is set forth in the Articles of Association which company, each member of the Board of Directors has
makes reference to all prevailing regulations. the following responsibilities:
As of 31 December 2014, the Board of Directors

President Director : Wishnu Wardhana
comprised seven members, one of whom is an
Independent Director. The President Director as the Group Chief Executive
Officer (Group CEO) is responsible for implementing
Members of the Board of Directors are appointed by the the corporate strategy together with the Board of
GMS for a two-year term without prejudice to the right Commissioners and realizing it in the the day to day
of the GMS to dismiss them at any time. The President management and oeprations and development of the
Director is entitled and authorised to act for and on Company and its subsidiaries. In this task, the President
behalf of the Board of Directors and represent the Director is assisted by a Group Chief Operating &
Company. In the case that the President Director is absent Financial Officer (Group COO & CFO) and five Directors
or unable to be present for any reason whatsoever, of each in charge of managing a different directorate,
which impediment no evidence to any third party shall namely Energy Resources: Coal and Oil & Gas, Energy
be required, the Vice President Director jointly with one Services: Mining and Energy Infrastructure, Business
Director or two other members of the Board of Directors Development, Energy Infrastructure: Marine Logistics,
shall be entitled and competent to act for and on behalf and Energy Services: Oil & Gas, assisted by the Corporate
of the Board of Directors and represent the Company. Secretary & Internal Audit.
Vice President Director: M. Arsjad Rasjid P.M. e. Meeting Frequency and Attendance
Besides serving as the Vice President Director, he Board of Directors meetings may be held at any time
concurently serves as the Group COO & CFO. In deemed necessary by one or more members of the
executing his responsibilities, he is also responsible for Board of Directors, or upon written request from one
the day to day operational activities of the Company or more members of the Board of Commissioners, or
and directly oversees the Investor Relations & upon the written request of one or more shareholders
Corporate Finance, the Financial Controller, Corporate who jointly represent one tenth or more of the total
Planning, Tax & Risk Management, Office of The CEO, shares with voting rights. Board of Directors meetings
Communications & Sustainability; Legal, ICT & Business are deemed legitimate and entitled to make legally
Process Improvement, Human Capital & Internal binding decisions only if more than one half of the
Communication, Project Development & Services, and Board of Directors members are either present or
Indika Corporate Security. represented in the meeting. Resolutions of the Board of
Directors meetings must be based on consensus. Failing
to achieve consensus, the resolution shall be passed by
Director : Azis Armand voting based on affirmative votes of at least more than
half of the total votes cast at the meeting.
As Director of Energy Resources: Coal and Oil & Gas, .
Azis Armand is responsible for day to day operational
activities in the field of coal and oil & gas and execution The Board of Directors may also pass valid resolutions
of related tasks through company subsidiary PT Indika without convening a Board of Directors meeting,
Indonesia Resources and its subsidiaries. provided that all members of the Board of Directors
have been notified in writing and all members of the
Board of Directors have granted their approval in writing
Director : Rico Rustombi as evidenced by their signed consent. The resolutions
passed in such a manner shall have the same legal force
As Director of Energy Services: Mining & Energy as the resolutions lawfully passed at a Board of Directors
Infrastructure, Rico Rustombi is responsible for day meeting.
to day operational activities in the field of mining and
infrastructure, and execution of related tasks through In 2014, the Board of Directors conducted meetings
company subsidiary PT Mitrabahtera Segara Sejati Tbk which, among others, aimed to discuss current market
and its subsidiaries. conditions, the performance of the Company and other
aspects relating to the Company’s operations and
business, as well as to approve the corporate actions of
Director : Joseph Pangalila the Company.
As Director of Oil & Gas Services, Joseph Pangalila is
responsible for day to day operational activities in the
Meetings of the Board of Directors
field of oil & gas. and execution of related tasks through
company subsidiaries PT Tripatra Engineers and PT In 2014, the Board of Directors of the Company held
Tripatra Engineers & Constructors. eight meetings on the following dates:
1. 15 March;
Director : Richard Bruce Ness
2. 25 April;
As Director of Energy Services, Richard Bruce Ness is
responsible for day to day operations in the field of 3. 19 June;
energy and execution of related tasks through company 4. 21 July;
subsidiary PT Petrosea Tbk. and its subsidiaries.
5. 29 August;
6. 27 October;
Independent Director: Eddy Junaedy Danu
7. 24 November; dan
As Director of Power and Business Development, he
8. 1 December
is responsible for the business development of the
Company.

Their record of attendance was as follows: Remuneration Structure of the Board of
Directors
MEETING FREQUENCY Details of the compensation awarded to the Board of
AND ATTENDANCE Directors of the Group for 2013 and 2014 are as follows:
MEETINGS ANCE ATTEND-
in US$
ANCE
Wishnu Wardhana 8 8 0 100% DESCRIPTION 2014 2013

M. Arsjad Rasjid P.M. 8 8 0 100% Short term benefits 1,817,620 2,637,613
Azis Armand 8 8 0 100%
Rico Rustombi 8 7 1 87.5% i. Board of Directors Training Program
Joseph Pangalila 8 8 0 100%
Members of the Board of Directors attended the Indika
Richard Bruce Ness 8 8 0 100% Energy Leadership Summit held in October 2014 in
Eddy Junaedy Danu 8 8 0 100% Bandung, Indonesia.
In addition, in November 2014, Mr. Arsjad Rasjid

e. Assessment of the Board of Directors completed the Executive Education on Leadership
and Decision Making in the 21st Century program at
Performance Assessment Process for the Board of
the Jackson Institute for Global Affairs, Yale University,
Directors
United States.
As part of the implementation of good corporate
governance in the Company and to maintain yearly j. Working Relationship between the Board of
improvements in the performance of the Company, Commissioners and Board of Directors
periodic assessments are made of the members of
Board of Directors of the Company. As a measure of The working relationship of the Board of Commissioners
performance, the Board of Directors submits Financial and Board of Directors is one of check and balance for the
Statements to the Audit Committee in the form of: Company’s advancement and health, so as to give rise
to professional, transparent and efficient management
of the Company, as well as the structure for a better
• Interim Consolidated Financial Statements for the 1st
working relationship between these two organs of the
and 3rd Quarter; and
company.
• Mid-Year Financial Statement and Consolidated Annual
Financial Statement.
Collective Meetings of the Board of
Parties carring out the Performance Assessment of the Commissioners and Board of Directors
Board of Commissioners In 2014, the Board of Commissioners and Board of
Directors held five collective meetings on the following:
Assessment of the performance of the Board of
Commissioners is carried out based on evaluation 1. 10 March;
criteria that is related to the execution of the Board of
Director’s tasks and responsibilities. 2. 28 April;
3. 23 July;
f. Remuneration of the Board of Commissioners 4. 28 October; and
Procedure for Determination of Remuneration of
5. 3 December.
the Board of Commissioners
Members of the Board of Commissioners receive These meetings were held with the purpose of exposure
remuneration with reference to the remuneration and discussion of the quarterly financial statements and
principles of the Company, prevailing regulations, the Annual Budget Work Plan.
comparisons with similar industries and the performance
of the Company, which must then be approved by a GMS.
The attendance of members of the Board of a. Duties and Responsibilities of the Corporate
Commissioners and Board of Directors in these meetings Secretary
are presented in the list of Joint Meeting of the Board of
Commissioners and Board of Directors as follows: The Corporate Secretary functions as the contact person
of the Company with regard to external parties, in
particular the government, capital market authorities,
MEETING FREQUENCY media and related stakeholders. The Corporate Secretary
AND ATTENDANCE facilitates effective and transparent communication with
NAME NO. OF ATTEND- ABSENCE % regulators, authorities, and capital market participants,
MEETINGS ANCE ATTEND- and ensures the availability of information on material
ANCE
transactions and corporate actions.The Corporate
Wiwoho Basuki Tjokronegoro 5 5 0 100% Secretary is also responsible for ensuring compliance with
Agus Lasmono 5 4 1 80% prevailing laws and regulations, specifically in the capital
Indracahya Basuki 5 5 0 100% market sector. In addition, the Corporate Secretary also
ensures that the Company complies with mandatory
Pandri Prabono-Moelyo 5 4 1 80% reporting requirements, such as information disclosure
Anton Wahjosoedibjo 5 5 0 100% on the Company’s actions, Financial Statements, Annual
Dedi Aditya Sumanagara 5 5 0 100% Report, the shareholders registry monthly report and
the monthly report of the Company’s foreign currency
Wishnu Wardhana 5 5 0 100%
liabilities.
M. Arsjad Rasjid P.M. 5 5 0 100%
Azis Armand 5 4 1 80% b. Activities of the Corporate Secretary
Rico Rustombi 5 3 2 60%
In 2014, the Company submitted the required reports in
Joseph Pangalila 5 4 1 80%
a timely manner to regulators, including but not limited
Richard Bruce Ness 5 4 1 80% to the Indonesian Financial Services Authority (OJK)
Eddy Junaedy Danu 5 5 0 100% and the Indonesia Stock Exchange (IDX). The Corporate
Secretary also completed and submitted the Company’s
2013 Annual Report on 30 April and organized and
convened the AGMS and Public Expose on 14 May 2014.
VI. CONTROLLING SHAREHOLDER
The controlling shareholder of the Company is PT Indika c. Profile
Mitra Energi, which is indirectly controlled by Wiwoho
Basuki Tjokronegoro and Agus Lasmono. Dian Paramita, age 40, was appointed as the Corporate
Secretary of PT Indika Energy Tbk. in 2013. Currently
she also serves as Head of Legal of the Company. Prior
VII. CORPORATE SECRETARY to joining Indika Energy, she held positions as Head of
Legal of PT Bentoel Internasional Investama Tbk (2011–
The Corporate Secretary works with related divisions, 2013) and Partner at Soewito Suhardiman Eddymurthy
including Legal, Investor Relations and Corporate Kardono Law Firm (1997–2011). She graduated from the
Communication to communicate Company information Faculty of Law at the University of Indonesia in 1997 and
for the public and ensure that this information earned her Master of Law from Washington College of
is distributed accurately, clearly, efficiently, and Law American University, USA in 2001.
comprehensively in accordance with prevailing
laws and regulations. In performing its function, the
Corporate Secretary adheres to the principles of GCG,
d. Training
particularly those of accountability and transparency, The Company Secretary attended various trainings in the
so as to maintain and enhance the Company’s integrity capital markets field to develop her competency as the
and trustworthiness in the capital market with its Company Secretary, and also attended the Leadership
shareholders and stakeholders. Summit held in October 2014.
Pursuant to the Circular Resolution of the Board of

Directors Number 040/IE-BOD/VIII/2013 dated 22 July VIII. INTERNAL AUDIT
2013, Dian Paramita has been appointed as Corporate
Secretary of the Company. The Company’s Internal Audit function provides an
independent and objective assurance and consultation
activity designed to improve the operations of the
Company, through a systematic approach of evaluating

62.80% 7.20% 30%
PT Indika Inti Holdiko PT Utama Prima Kencana PT Teladan Resources
63.47% 36.53%
PT Indika Mitra Energi* Public
PT Indika Energy Tbk.
*Controlled by Mr. Wiwoho Basuki Tjokronegoro and Family in the amount of 40.5% and Mr. Agus Lasmono in the amount of 59.5%.
and improving the effectiveness of internal controls, risk to the Board of Directors and Board of Commissioners
management and corporate governance processes. in connection with its responsibility. To ensure the
independence of the Internal Audit function, the Internal
In addition, Internal Audit also assess and examines the Audit does not participate in operational activities such
efficiency and effectiveness of the Company’s activities as conducting or approving accounting transactions.
in finance, operations, human resources, information The Internal Audit department staff reports to the
technology and others. Head of Internal Audit, who reports administratively to
the President Director and Vice President Director and
functionally to the Audit Committee.
a. Scope and Duties
The Internal Audit department formulates a yearly audit b. Head of Internal Audit
plan which covers all areas of activity of the Company
and must be approved by the Board of Directors and i) Appointment & Dismissal
Audit Committee of the Company. Internal Audit is
In accordance with Bapepam-LK Regulation No.
responsible for implementing the Audit Plan during
IX.I.7 wherein the Formation and Guidelines of
the year, including any ad-hoc engagements requested
the Internal Audit Charter are specified, Indika
by the management. Specifically, the Internal Audit
Energy’s Head of Internal Audit is appointed by
department endeavors to improve profitability by
the President Director with the approval of the
recommending improvements in management control
Board of Commissioners.
and encouraging adherence to standardized procedures
and best practices. It aims to determine whether the risk
The President Director may dismiss the Head of
management, internal controls and the governance
the Internal Audit Unit with the approval of the
processes that have been designed and implemented
Board of Commissioners if he/she is not able
are adequate and functioning properly.
to discharge the responsibilities as an Internal
Auditor as set forth in the Internal Audit Charter,
Findings and recommendations, including any remedial or cannot discharge his/her responsibilities well.
steps to be taken, are communicated to the relevant
senior management at the end of each internal audit
engagement. The final audit reports are sent to the ii) Current Head of Internal Audit
Audit Committee. During the year, Internal Audit met Pursuant to the Board of Directors Decision Letter
with the Audit Committee to discuss completed tasks, dated 30 October 2013, Rajiv Krishna has been
findings, recommendations and necessary actions for appointed as the Head of Internal Audit of the
improvement, as well as the audit plan. Company, replacing the former Head of Internal
Audit, namely Kasturin. His profile is as follows.
In carrying out its duties, the Internal Audit department
has unrestricted access to all records and functions, Rajiv Krishna, age 56, has been appointed as Head
properties and employees of the Company, as well as of Internal Audit of PT Indika Energy Tbk since

2013. Prior to this he was a Director of Pyramid Osman Sitorus will sign the Indpendent Audit Report on
Glass Company, Alexandria, Egypt, a unit of behalf of Public Accounting Firm Osman Bing Satrio &
Kedaung Group, Indonesia, where he concurrently Eny for the 2014 fiscal year.
held the position of Group Head of Internal Audit
for 13 years. His previous professional experience The appointed Public Accountant has carried out the
includes Financial Controller at Mayapada Group audit based on the Auditing Standards established by the
and also Group Financial Controller at Kasogi Indonesian Institute of Certified Public Accountants and
International (Ganda Wangsa Utama) in Surabaya. based on the scope of work that has been determined
He is a Bachelor of Commerce (Honors) graduate and agreed upon.
from St. Xavier’s College, Calcutta University
and is an Associate Member of the Institute of
Chartered Accountants of India since 1986.
a) Public Accountant Term & Fees
The table below set forth the Public Accountant
iii) Internal Audit Activities in 2014 Firm and Public Accountant used for the last five
years followed by total remuneration for audit
During 2014, Internal Audit carried out services paid.
engagements in accordance with the Audit
Plan approved by the Audit Committee at the Total remuneration for the abovementioned
beginning of the year. The scope of work of audit service totalled approximately US$78,000
Internal Audit covered the operational activities in 2014, compared with US$77,000 in 2013.
of the Company and the examination of adequacy
of internal controls in finance and operations, as It is the third year that Osman Bing Satrio & Eny
well as the integrity of financial reporting. has acted as an independent auditor for the
Company.
The Internal Audit department met with the
Audit Committee on four occasions during 2014. No other services were provided by Osman Bing
These meetings were held on: Satrio & Eny to the Company in 2014
1. 10 March
2. 28 April YEAR PUBLIC ACCOUNTANT PUBLIC AUDIT FEE
FIRM ACCOUNTANT
3. 22 July
2014 Osman Bing Satrio Drs. Osman Sitorus US$78,000
4. 28 October & Eny
& Eny
IX. EXTERNAL AUDITOR
In accordance with Regulation No. VIII.A.2, Bapepam- & Eny
LK Decision Attachment No. Kep-86 / BL / 2011 2011 Osman Bing Satrio Ali Hery US$90,000
dated February 2011 related to the Independence & Eny
of Accountants Providing Capital Market Services,
regarding Restrictions on Audit, Assignments which 2010 Osman Bing Satrio Ali Hery US$101,500
includes: & Eny
a. The provision of public audit services for client

b) Services Apart from the Yearly Financial Audit Report
financial statements may only be done by a public
accounting firm for a maximum of 6 (six) consecutive For the fiscal year 2014, no other services were
years and by an accountant for a maxiimum of three provided by Public Accountant Drs. Osman
(3) consecutive years. Sitorus from Osman Bing Satrio & Eny Public
Accountant firm to the Company apart from
b. A Public Accountant Office and Accountants may be
audit services of the yearly financial statements.
reappointed to audit a client after one year of not
auditing the client.
EMPLOYEE AND MANAGEMENT STOCK OPTION
As approved by the AGMS dated 14 May 2014, the PROGRAM
Company has appointed Public Accounting Firm Osman
Bing Satrio & Eny as theindependent auditor to audit In February 2008, the shareholders approved the
the Company’s Consolidated Financial Statements for Employee and Management Stock Option Program
the 2014 fiscal year. Specifically, public accountant Drs. (EMSOP). Issuance and distribution of options related to

the EMSOP were implemented in three stages. The Board XI. INTERNAL CONTROL SYSTEM
of Directors established the participants eligible for
EMSOP. Total options amounting to 104,142,000 options The internal control system is a process that is integral to
were allocated in three stages: 31,242,500 in each of the the actions and activities carried out on an ongoing basis
first and second stages and 41,657,000 in the third stage. by management and all employees to provide reasonable
The options are nontransferable and non-tradeable. assurance regarding the achievement of organizational
goals through operational effectiveness and efficiency,
Each of the options distributed in each stage is valid for reliable financial reporting and compliance with laws
five years as of the date of its issuance. The options are and regulations.
subject to a one-year vesting period, during which the
participant may not exercise the option.The exercise The Company has an effective internal control system in
price for the option is determined based on Listing place consisting of a series of best practice policies and
Rule No. 1-A, as attached to the Decree of the Board procedures, control activities comprising authorization
of Directors of the Indonesia Stock Exchange (IDX) No. controls, financial review, supporting documentation,
KEP-305/BEJ/07-2004 dated 19 July 2004. There are a reconciliations and checks, physical security, information
maximum of two exercise periods a year. system security and segregation of duties covering
financial and operational aspects as well as procedures
Based on the Board of Directors Decision Letter No. 234/ to ensure compliance with laws and regulations.
IE-BOD/VIII/2009 dated 11 August 2009 to the Board of
Directors of the Indonesia Stock Exchange, the Board of This system provides assurance to management that
Directors of the Company have agreed on an excercise the operations are being conducted in an efficient and
price of Rp2,138. There were 101,092,000 outstanding effective manner and that the records of the Company
options as of 31 December 2014. In 2014, there were fairly and accurately record the results of these
no compensation expenses related to employee and operations. The internal control system is designed to
management stock options. prevent material transactions from occurring without
proper authorizations as well as to prevent and detect
irregularities and discrepancies.
X. RISK MANAGEMENT
While all employees are aware of the concept and
The Risk Management System of the Company purpose of internal controls, the Company’s Internal Audit
department periodically evaluates the effectiveness of
Recognizing that its operational and financial
the internal control system established by management.
performance and growth are susceptible to various risks,
Internal Audit ensures that the Company’s policies
the Company has instituted a risk management system
and procedures are being followed and any material
to ensure sustainable growth.
weaknesses are identified and recommendations for
improvement of the controls are communicated to the
Risks Faced by the Company relevant levels of management.
The Company faces a number of risks in its operational
activities, foremost related to the volatility of coal prices. a. Framework for Internal Control Systems
For more information on risks faced by the Company,
The Company has established an internal control system
please refer to the Risk Factor section.
in accordance with internationally recognized framework
of the the Committee of Sponsoring Organizations of
Evaluation of Risk Management System Effectiveness the Treadway Commission (COSO). According to COSO,
the internal control system is a process that involves the
The effectiveness of the Company’s risk management
Board of Commissioners, Board of Directors, as well as
system is periodically evaluated by the Risk & Investment
other personnel. This is in line with the existing system
Committee, with input from the Audit Committee and
of internal control in the Company, which continues to
Internal Audit Unit.
develop the organizational control system by involving
all available resources.
Efforts to Manage Risk
The Company undertakes various measures to manage b. Evaluation of Effectiveness of Internal Control
risk, including the implementation of a risk matrix; System
managing the capital structure to achieve an optimal
balance between debt and equity; ongoing liquidity risk The effectiveness of the Company’s internal control
management, and others. system is reflected in three processes, namely:

1. Entity Level Processes environment. Such awareness is also part of the
Company’s steps to comply with Law No. 32 Year
The realization of an increase in the internal 2009 regarding the Protection and Management
control at the entity level. Internal Audit Unit to of the Environment.
improve the quality of supervision and inspection
audit of the performance of each department,
branch and project. The Company also will Activities
directly follow any criticism and suggestions Indika Energy has no core operational activities
addressed to the Company, so that all employees that significantly impact the environment.
at every level can participate in supervising and However, Indika Energy encourages all its
reporting the incidents of dishonesty in each subsidiaries to mitigate and prevent negative
work area within the Company. To maintain its environmental impacts and to comply with
commitment to the implementation of corporate all relevant rules and regulations. In addition,
governance, the Company applies the principles employees are encouraged to participate in
of the code of conduct on an ongoing basis at environmentally friendly activities.
every level.
On February 14, 2014, Indika Energy collaborated
2. Business Level Processes with the Hidden Public Park Campaign to carry
out improvements to the Tebet City Park, Jakarta,
An increase in the scope of internal control at which included adding a playground in Jakarta.
the business process level has had an impact on Such green spaces are important to improving
the financial statements, particularly in terms of the urban environment.
risk recognition which can now be accounted
for more accurately and accountably. This is
evident from the presence of internal controls Certification
in inventory, financial reporting, and sales and Indika Energy does not have specific
receivables processes. environmental certification since its core business
activities do not entail significant environmental
3. Information Technology Level Processes impact.
• improvements to network and system security;

CSR related to Labour, Workplace Health and Safety
• improvements to the quality of information
technology. Policy
Indika Energy strives to be an employer of choice,
c. Internal Control Systems in the Future by implementing good labor practices and
providing a safe and healthy work environment.
Currently, the Company has not yet established a
COSO (Control Environment, Risk Assessment, Control
Activities, Information and Communication, and Activities
Monitoring Activities)-standard system. However, the Good labor practices include implementation of:
Company will continue to enhance internal control
systems that focus on effectiveness, efficiency, reliability • Equal opportunity recruitment
reporting, and compliance with regulations.
• Equal opportunity career development regardless
of gender, race or religions
XII. CORPORATE SOCIAL RESPONSIBILITY • Competitive remuneration and benefits
(CSR)
• Retention policies to reduce turnover
CSR related to the Environment
Initiatives to ensure workplace health & safety include:
Policy
• All eligible employees are medically ensured
The Company is highly aware that the environment
is a primary factor in supporting the business • The Company strives to provide a healthy work
sustainability of the Company. As a result, the environment for example by banning smoking
Company must ensure in its operations that its indoors
business activities do not negatively impact the
• Office safety drills

CSR Related to Social & Community Development XIII. LITIGATION
Policy Relating to the final decision of the Indonesian Supreme
Court in favour of the Company with regard to the
Indika Energy is committed to social and use of historical net book value in accounting for the
community development, primarily through merger of the Company, PT Tripatra Company (TPC)
education and community healthcare as well as and PT Ganesha Intra Development Company (GID), the
through economic empowerment. Company has received the original copy of the decision.
Activities On August 2014, trading of PT Mitrabahtera Segara Sejati

In 2014, the Company revitalized the school Tbk. (MBSS) stock was suspended by the Indonesia Stock
library of elementary school SD Dinamika to Exchange for 2 days related to a Request for Suspension
encourage students’ interest in reading. of Payment of Debts (PKPU) filed by PT Great Dyke in the
Jakarta the Commercial Court with the number No. 39 /
Together with the Karya Salemba Empat (KSE) Rev-SUS / PKPU / 2014 / PN. Niaga.JKT.PST.
foundation, the Company also helped fund
university scholarships for promising students to After discussion and negotiation with PT Great Dyke,
attend the University of Palangkaraya. MBSS settled the payment and the Indonesia Stock
Exchange lifted suspension of the MBSS stock trading
The Company has also established a healthcare on the Exchange.
clinic at KSPSI’s headquarters and in Cikupa.
In 2014, it carried out the revitalization of an These proceedings did not materially impact the
Integrated Services Post (Posyandu) healthcare business viability of Indika Energy Group.
clinic located in RW 08 Petojo Selatan – Central
Jakarta.
XV. ACCESS TO COMPANY DATA AND
Lastly, a women’s micro-financing institution INFORMATION
program was held also in RW 08 Petojo Selatan that
aimed to improve the capacity of underprivileged In line with the GCG principle of transparency, Indika
women to develop their businesses so that they Energy openly discloses material information through
could improve their families’ income. public exposes, various communication channels and
internal communications through various channels
including the website, press conferences, investor
CSR Related to Consumer Responsibility
meetings, corporate releases, submission of regular
Policy quarterly financial reports to the Indonesian Financial
Services Authority, and submission of the annual report.
As a company that does not produce products
or services, Indika Energy strives to provide The objective is to provide all the necessary material
accurate and timely information on the condition and relevant information to the shareholders and
of its business and its subsidiaries that enable stakeholders by facilitating easy access of accurate
investors to make informed decisions whether to and timely information, in a meaningful and easily
buy or sell its shares. comprehensible manner. This is not limited to information
as required by prevailing laws and regulatory bodies,
Activities but includes all necessary information required by the
shareholders to make informed decisions. Information
Indika Energy actively discloses material
which is deemed by prevailing laws and regulations to
information on its website and communicates
be proprietary and confidential shall not be disclosed, in
through various forums including public exposes,
accordance with the designated position of the person
the annual report, analyst meetings, roadshows
and the privileges assigned there to.
and more. Any questions or complaints may
be sent to the Investor Relations or Corporate
Secretary, or submitted anonymously in the XVI. CODE OF BUSINESS CONDUCT
case of a violation through the Company’s
Whistleblowing channel. In implementing Good Corporate Governance, every
employee is responsible and obligated to help create
a healthy and good work environment. Therefore, as

a form of collective responsibility, in December 2014 2. Health, Safety and Environment
the Company updated the Code of Conduct Employee
Handbook and socialized these guidelines. In every activity, Indika Energy Group always prioritizes
the principles of Health, Safety and Environment (HSE).
All Indika Energy Group employees are required to Regardless of the amount of profit that the Group can
comply with the business ethics of the company and the obtain, the safety and security of employees is the first
code of conduct, which among others runs as follows: priority. Healthy employees who are working in safe
and comfortable conditions will maintain and drive
the the achievement of the Company’s aims. As such,
1. Employees employees as the most important resources will be given
training and placed in positions in accordance with work
- Employees as Individuals procedures that guarantee protection of the health and
• Respecting Every Individual safety of employees.
Every employee has the right to develop
his/her potential and Indika Energy Group 3. Integrity
is committed to value the talents of each
The following are an explanation of main elements of
individual while holding firm to and
the principles of integrity in business:
upholding the values of the Company.
• Equal Opportunity - Conflicts of Interest

The Company will provide equal employment What are meant by parties which have the
opportunity for all employees, regardless potential to become involved in conflicts of
of ethnicity, religion, race, customs, gender, interests according to this regulation are:
age and or physical obstacles. The Company
makes an exception to this policy only when a. Any employee family member including spouses
hiring employees for positions that require (husband/wife), children, father, mother, male or
specific physical abilities in performing the female relatives who are related by blood or by
primary functions of the job. marriage and descent until the second degree,
both horizontally as well as vertically.
- Employees in the Working Place b. Any organization that is not related to
the Company in which an employee or an
• Respecting Diversity
employee’s family member is an official, owner,
Indika Energy Group values the diversity of partner, enjoys profit from any type of share
its employees. Each employee must respect in the Company / or property in which that
differences of gender, language, culture, individual has considerable interests/profits, or
religion, sexual orientation and social who serves as a supervisor of the company or in
economic status of other employees. a similar capacity.
• Respectful of Norms
- Receiving/Giving Illegally
Providing a working environment working
environment that is mutually respectful of Indika Energy Group companies are not allowed
all employees, free from any intimidation, to directly or through intermediaries, offer,
hostility, insults or other unpleasant behavior promise or give gifts, payment or any benefits
in any form whatsoever, which may cause in any form whatsoever to employees, officers or
feelings of hurt, ostracization, belittlement government officials.
or insult.
- Donations
- Employees & Social Activities Indika Energy Group does not provide any
In general, Indika Energy respects and donations or sponsorships to political parties or
supports cultures, traditions and customs of private individuals with the potential to generate
the communities in which it has operational improper profit or influence.
business activities. Each employee may actively
participate in community volunteer programs Donations that may be given pursuant to the
with the objective of strengthening ties and provisions of the Company and prevailing laws
familiarity with local communities. and regulations subject to specific scrutiny are:

a. Contributions to government agencies for XVIII. WHISTLEBLOWING SYSTEM
public use. This donation shall NOT include
donations for government official nomination In 2014, Indika Energy has set up a reporting system
processes or for political party member election for violations or noncompliance. This non-compliance
processes (Pilkada). reporting policy (whistleblowing) is a system that can be
used as a media for the whistleblowers to submit data
b. Contributions to professional associations and information regarding violations that occurred in
or educational,socio religious, and sports any of the companies within Indika Energy Group. This
institutions, provided that the professional system was designed to avoid controversy or dispute
associations or institutions will not influence between the parties involved, enabling the best solution
legislation or participate in campaigning for to be found to problems that arise.
public office, and none of the contributions will
benefit any private or individual stakeholders.
The complaint mechanism is very important because the
violations that are left unchecked have the potential to
- Anti Corruption Behavior damage the reputation and public trust of the companies
Compliance with regulations is a characteristic in Indika Energy Group. Complaints that are received
that is clearly aligned with an anti-corruption through whistleblowing will be attended to and followed
attitude and behavior. up on, including also the imposition of appropriate
penalties in order to provide a deterrent effect
4. Information Management
Employees of Indika Energy Group who observe
Every employee is responsible for protecting the security of: indications of violations and decided to file a report may
do so through their direct supervisor in accordance with
a. Confidential data and information belonging to the applicable rules and procedures.
Company as well as within Indika Energy Group.
With this reporting system for non-compliance in
b. Information Technology (IT) hardware/software and place, all stakeholders of Indika Energy Group including
the Company’s information system employees, suppliers and the related general public can
and must report violations of ethical business conduct
5. Bookkeeping, Control and Protection of Company related to any company in Indika Energy Group. All
Assets reporting on the actions of non-compliance will be
followed up with a complaint meets the reporting
The following are a number of policies and regulations criteria, namely:
that all employees must take notice of and comply with
to protect the assets and finances of the Company. • Explaining who, what was done, when, where, why and how.
• Supported by initial evidence (data, documents, images
a. Accurate Bookkeeping
and recordings) that support / explains the offenses.
b. Financial Control
• It is expected that the report will be supported by data
c. Asset Protection and information sources for further examination.
5. Reporting of Non-Compliance, Investigations, If these criteria are complete, the complainant (related
Disciplinary Sanctions employees, suppliers and the general public) may submit
a complaint through the Indika Energy whistleblowing
Failure to comply with the code of conduct that involves website, or by mail addressed to the Board of Ethics of
criminal actions may result in a court of law summons by Indika Energy.
authorized parties. Employees who violate regulations,
laws or the rules of any company within Indika Group The Company does not view whistleblowers as trouble
may face disciplinary sanctions including the severance makers, but as a witness of an incident. Any input or
of the work relationship. violation will be followed up in a professional manner
and the anonymity of the whistleblower will be fully
Indika Energy has created a reporting system for guaranteed.
violations or non-compliance. This whistleblowing
policy for noncompliance is a system that can serve as All whistlelblowers will be protected against the
a channel for whistleblowers to communicate data and negative effects of retaliation for reporting violations
information regarding indications of violations within of unethical conduct of business at any company within
any company in Indika Energy Group. Indika Energy Group.

In 2014, reports received by the Company through the
whistleblowing system as follows
NUMBER OF
TYPE OF REPORTS DESCRIPTION
REPORTS
Reports Received 2 Report received.
Qualified Reports 1 Report qualified for
further action.
Progress 1 Report in the process.
XIX. DIVERSITY OF THE BOARDS

Enshrined in the Company values and Company Code
of Conduct is respect for diversity, which extends to
all individuals in Indika Energy Group including the
Board of Directors and Board of Commissioners. The
Company Values and Code of Conduct explicitly states
that Indika Energy Group values the diversity of its
employees including differences of gender, language,
culture, religion, sexual orientation and social
economic status. As such, members of the Board of
Directors and Board of Commissioners are appointed
on the basis of merit with respect for diversity.

Laporan Manajemen
Human capital is the primary asset of any company.
Human
Indika Energy therefore makes it a priority to recruit
and develop high qualified individuals with a view
towards improving the Company’s performance and
driving future innovation. The task of the Human Capital
Capital
Division is to carry out these objectives.
EMPLOYER OF CHOICE
In line with these objectives, Indika Energy strives to be
an employer of choice by providing safe, healthy and
attractive working conditions so as to attract and retain
high quality candidates, and support the productivity of
its existing human resources. Indika Energy also practices
equal opportunity hiring and career advancement,
regardless of gender, race or religion, except for positions
which entail certain physical requirements. All eligible
employees are covered by medical insurance and are
also enrolled in the state Jamsostek pension plan. In
2014, Indika Energy had 324 employees, compared with
416 employees in 2013. Total employees in the Group for
2014 stood at 8,320 employees, compared with 8,445
employees in 2013.

INITIATIVES IN 2014 • Maintaining zero growth with no employees added to
the human capital headcount, except as required for
The quality and productivity of Indika Energy’s human business needs and to replace employees who resigned
capital was further spotlighted in 2014 as the Company or retired;
continued to experience intense pricing pressure
stemming from the still slow global economy and • Implementation of the Leadership Development Program
prolonged decline in coal prices. In response, the Human and socialization of the 8+1 Leadership Competencies
Capital Division continued to undertake a number of model that employees are expected to strive for, across
initiatives from 2013 and introduced new initiatives the entire Group. This was followed by assessments in
with the goal of reducing costs and creating a high December 2014.
performance work force, as follows:
EFFORTS TO UPHOLD THE CODE OF
• The organizational structure was continuously adjusted
ETHICS
in line with business needs to become leaner and more
flexible, with richer functionality; In line with the Company’s commitment to implement
• Operational Excellence was introduced to ensure effective good corporate governance and nurture a corporate
execution every part of the organizational chain; culture that fosters integrity, the Human Capital Division
collaborated with the Corporate Secretary, Legal
• Matching the structural and functional/non-structural Division and Internal Audit to internalize the prevailing
requirements of different units/ with the right numbers Ethical Business Conduct Guidelines.
of qualified and competent employees;
• Using Key Performance Indicators (KPI) to effectively In 2014, Indika Energy released an Employee Handbook
guide and measure the performance of employees in on the Code of Business Conduct discusses the values
achieving the targets set by the Company; and actions that should be implemented by all

employees, towards creating an ethical and conducive The annual Leadership Summit was held in October
work environment. This Handbook includes policies 22-23, 2014, attended by the senior management of all
on corporate business ethics and the code of conduct the companies within the Group. This summit serves to
that employees of Indika Energy Group must comply strengthen the internal culture and people development
with, as employees’ behavior and action can either build process by focusing on Operational Excellence practices.
up or ruin the company’s reputation. Indika Energy As good companies are always looking for ways to
Group expects that all employees will work together to improve productivity and be competitive and so is Indika
implement Corporate Governance in a principled and Energy. Through experiential learning, the participants
ethical manner in accordance with the Corporate Value of Leadership Summit learnt some methodologies
System adopted. Employees who violate this policy to achieve growth, revenue and profit targets with
shall be subject to disciplinary sanctions as provided for greater speed, by building a more efficient and effective
by each company within Indika Energy Group. operation. At the end of the summit, participants learnt
how to:
In addition, Company regulations were updated and
enhanced, with the object of promoting rules that • Secure sustainable improvements in operational
support effective and productive work, and serving as efficiency and effectiveness
basis for the implementation of Performance Culture.
• Boost profits by increasing outputs while reducing
inputs
LEADERSHIP TRAINING AND CORPORATE • Focus on value creating activities and aggressively
CULTURE streamline any activity that is not creating value for
your company or your customers.
To support the Company’s transformation into a high
performance company, a Leadership Competencies • Improve customer satisfaction, loyalty and retention.
Dictionary was created. The Leadership Framework sets • Smart cost reduction that’s sustainable in the long-term
the expectations and standards for behaviours, skills
and competencies that support Indika Energy’s mission, • Intelligent resource allocation and asset utilization
vision and ambitions in a way that is consistent with operational excellence principles
its values. The Leadership competencies will also be
incorporated into performance management measures.

SAP IMPLEMENTATION (THE INSPIRE
PROJECT)
Human Capital Division played an important role in the BY LEVEL
successful implementation of SAP at a Group-wide level
INDIKA ENERGY GROUP TOTAL
across all operating units and at holding level. The Human LEVEL
PERMANENT CONTRACT TOTAL
Capital Division, who actively collaborated with the
Change Management Team to ensure that all Company BOC - BOD 37 4 41
employees at all levels understood and accepted the Executive 56 5 61
changes associated with the implementation of the new
Manager 209 39 248
system.
Supervisor 743 422 1.165
The Human Capital Division also implemented change Staff 1,262 1,172 2,434
management in 2014 with a focus on functions related Non Staff 3.629 742 4371
to Communication, Organizational Alignment, and
Training and Performance Support which were intended Total 5,936 2,384 8,320
to reinforce the core of the Company, which is its human
capital.
BY EDUCATION
In 2014, Indika Energy had 324 employees, compared
with 416 employees in 2013. Total employees in the TOTAL GRUP INDIKA ENERGY
EDUCATION
Group for 2014 stood at 8,320 employees, compared PERMANENT CONTRACT TOTAL
with 8,445 employees in 2013. Doctorate/Ph.D 3 2 5
Master Degree 161 82 243
Bachelor Degree 1,336 862 2,198
Diploma Degree 348 205 553
Senior High School 3,084 875 3,959
Junior High School 425 63 488
Elementary School 217 30 247
Others/ Not Specified 364 263 627
Total 5,938 2,382 8,320

ENSURING SUSTAINABILITY
Corporate Indika Energy believes that the future of the energy

markets and the long-term growth of the Company is
inseparable from the welfare and development of its
Social
community, as well as environmental conservation.
The prolonged coal market downturn over the past few
years has not weakened Indika Energy’s commitment to
implementing the Company’s principles of sustainability.
Responsibility Indika Energy’s sustainability programs are formulated

and executed based on its corporate values with the aim
of creating an Indonesian society that is well educated,
healthy in body and spirit, and developing in line with
Indonesian core values. This long-term commitment
is essential in ensuring that the Company’s existence
benefits and adds value to the nation, society, and future
generations in an optimal and tangible manner.
Indika Energy believes that the Company has the same

interests and shares a common future as society, and
that it therefore is imperative to engage communities
through identification of their needs and program
participation to enable optimal value creation.

EDUCATION process itself, Indika Energy also improved the quality
of the school library through a library management
For Indika Energy, education is the key to achieve a better training program and the donation of reading books.
life for society. Providing access to quality education and More than 400 students at SD Dinamika elementary
skills training for the people living in our operational school have benefited and more than 63 students have
areas will create a significant empowerment effect. been inspired to continue on to higher education.
With communities that are empowered and able to In line with the Company’s vision of sustainability, Indika
leverage its knowledge and understanding to overcome Energy subsidiaries Petrosea, Tripatra, and MBSS have
a variety existing social issues, it is expected that they will also implemented sustainable education programs.
be able to work productively, resulting in the improved Together with the Integrated Village Service Foundation
welfare of society and generations to come. (Yayasan Pelayanan Desa Terpadu) in Samarinda,
Petrosea held training and mentoring programs to
Besides focusing on educational programs for children, improve the quality of teachers for early age education
Indika Energy also sees the importance of other and preschools in West Kutai and Kutai Kartanegara.
educational aspects, one of them being teachers. Over 6 months, materials covering child development
Therefore, a training program and provision of psychology, teaching skills, and early education
scholarships to improve the teachers’ competence is curriculum were given to 5 teachers. The success of
one of the key steps towards creating a smarter nation. this program can be seen by the improvements in
the implemented curriculum, more creative teaching
In 2014, Indika Energy continued a program to improve methods, and the use of various games as tools for
the quality of teachers at SD Dinamika elementary education that are suitable for children’s development.
school, Bantar Gebang, Bekasi, by providing training and
motivation and developing the teaching plan, as well as Apart from the teaching staff, educational support
facilitating benchmarking studies to other schools with facilities also play an important role in the teaching and
the objective of widening their horizons and increasing learning process. This was the primary reason behind
their motivation to teach. To support the learning Tripatra’s donation of 50 computers to 4 schools and 3

reading centers in several of its operational sites such as among communities in Kariangau and Margomulyo,
Bojonegoro, East Java and Luwuk, Central Sulawesi, as well Balikpapan, East Kalimantan. Starting from government
as Jakarta and Bandung. Through these contributions, it data indications that 40% of the community suffered
is expected that the teaching and learning process can from certain illnesses, hygienic and healthy living habits
be carried out more innovatively, opening channels of were reinforced by carrying out checks on cholesterol
information for the young generation. level, blood sugar, and uric acid, as well as a health and
sanitation campaign. Records showed that hundreds of
In addition, since 2011 Indika Energy has granted community members participated in this activity.
scholarships to more than 300 employee children
through the Educating the Nation’s Children (Indika
Energy Cerdaskan Anak Bangsa) program. These COMMUNITY EMPOWERMENT
scholarships are a manifestation of the Company’s Creating autonomous communities is the next goal of
concern and appreciation for the loyalty, dedication, Indika Energy’s sustainability program. In the midst of the
and hard work of its employees. It is expected that these economic limitations and challenges faced by society,
scholarships will motivate and help these high achieving Indika Energy has participated to help communities
children to continue their education at a higher level. empower themselves. Throughout 2014, Indika
Energy and its subsidiaries carried out 16 community
development and empowerment programs focusing on
HEALTH
education and mentoring to help small businesses.
Indika Energy views health improvements as part of
a series of efforts to improve the quality of human Working together with PPSW Jakarta, Indika Energy
resources, an important investment in supporting the developed a women’s cooperative in Petojo Selatan,
economic development of society. This is the reason Central Jakarta. The objective of this program is to
that health is one of the main focuses of attention in empower and improve the capacity of women at a grass
the Company’s operational areas, becoming one of our root level in developing their businesses, through the
avenues to empowering communities. support of financial institutions so that they can increase
their family’s incomes. The assistance provided covered
Working together with one of the leading women’s social training in financial administration basics, the basics of
foundations in Indonesia, the Center for Development how to run a cooperative, household economics and
of Women Human Resources (Pusat Pengembangan social analysis. At the end of 2014, the Makmur Sejahtera
Sumberdaya Wanita, PPSW), Indika Energy revitalized a women’s cooperative had 99 members.
Posyandu health clinic in Petojo Selatan, Central Jakarta,
as a frontline provider in fulfilling basic health needs Economic development for the community was
and improving the community’s nutritional intake. also realized by MBSS through sewing lessons for 30
Besides repairing its health facilities, the Posyandu staff housewives in Rangga Ilung-Kelanis, Central Kalimantan.
was educated with an emphasis on good health clinic Through this program, the housewives’ sewing abilities
management and improved service. were able to decrease the amount of cost expended on
buying school uniforms.
In collaboration with local government staff, training was
given to 13 Posyandu cadres. Each month, the Posyandu Cirebon Electric Power (CEP), an affiliated company
served 73 children under 5 years old and 45 seniors. of Indika Energy, launched a program of interest-
free loans for small businesses in Cirebon, West Java.
Improvements in health quality were also carried out In collaboration with the Pengabdian Masyarakat
by Tripatra, which routinely provided free medical Foundation (LPM) of Unswagati University, Cirebon, this
treatment once every 2 weeks in its operational area program has been implemented in 10 villages in the sub-
of Bojonegoro, East Java. In 2014, more than 1,500 districts of Astanajapura and Mundu. Moreover, CEP has
patients comprised of seniors and children under 5 years also assisted borrowers in developing their businesses.
old benefited from this treatment. Petrosea focuses Currently, more than 300 people have benefited from
on health education. Among others it carried out a this assistance.
program to reinforce hygienic and healthy living habits

Indika Energy’s sustainability programs are able to
empower communities to independently address
challenges and create economic opportunities.
ENVIRONMENT
Indika Energy is certain that preserving a clean, safe, and
healthy environment can go hand in hand with meeting
the world’s energy needs. Our efforts to accomplish
this involve continuous evaluation to improve our
processes to reduce pollution and waste, conserve
natural resources, and minimize any potential negative
environmental impacts of our activities and operations
on the environment.
A number of programs have been carefully formulated

and implemented to monitor and manage environmental
impacts as well as conserve the environment, with an
emphasis on the most efficient use of natural resources.
Indika Energy Group systematically reclaims land at its

mining operation sites to return the soil to a state viable
for post-disturbance land uses in mitigation of any
environmental impact.
Such reclamation is an integral part of mine plans from

the start and is carried out progressively in a number
of phases before, during and after mining operations
cease, with replanting undertaken as soon as the land
is ready.
Working together with local non-governmental

organization, CEP carries out a program to care for
mangrove trees at the edge of the Waruduwur Beach,
West Java, which covers the regular maintenance of
the trees including giving fertilizer and monitoring
the height growth of thousands of trees previously
planted. Up to the present day, CEP has planted more
than 35,000 mangrove trees around its operational
area. Rehabilitation or normalization of blocked water
channels spanning 170 meters was also carried out
in Waruduwur Village, starting with preparations and
removal of 300 cubic meters of earth which will be used
for planting trees.

• In January 2015, PT Indika Energy Infrastructure and PT
Subsequent
LPG Distribution Indonesia signed a purchase agreement
with a third party to sell all shares owned in PT Wahida
Arta Guna Lestari at a transaction price of Rp18 billion.
• In January 2015, PT Indika Inti Corpindo settled its
Events debts to Citibank N.A. in the amount of US$10 million.

In addition, in February 2015, the Company settled
its Working Capital Loan (WCL) from PT Bank Mandiri
(Persero) Tbk. In the amount of US$10 million.
• In February 2015, the Company drew down $10 million
of its credit facility without commitments obtained
from Citibank N.A. which matures on May 18, 2015. In
addition, in February and March, the Company also
withdrew US$65 million of the credit facility obtained
from Bank Mandiri without repeated commitments,
which matures on July 17, 2015. Both of these loans are
intended to finance coal trading activities.

• During January-March 2015, PT Multi Tambangjaya Utama
received a Tax Assessment Letter for Underpayment of
Tax from the Directorate General of Taxes for liabilities
related Value Added Tax totaling Rp73.4 billion.
• In March 2015, the Annual General Meeting of PT Kideco
Jaya Agung declared a total of US$141.5 million in cash
dividends from its 2014 earnings. The expected equity
share of the Company from these cash dividends is
around US$65.0 million.
• In early 2015, Bayan Group’s PT Gunung Bayan Pratama,
one of Petrosea’s contract mining clients, opted for early
termination of its contract due to prevailing market
conditions.

FINANCIAL
STATEMENTS
- 121 - Financial Statements
This page is intentionally left blank.

PT. INDIKA ENERGY Tbk AND ITS SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
AND SUPPLEMENTARY INFORMATION
FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013
AND INDEPENDENT AUDITORS’ REPORT

TABLE OF CONTENTS
Page
DIRECTORS’ STATEMENT LETTER
INDEPENDENT AUDITORS’ REPORT 1
CONSOLIDATED FINANCIAL STATEMENTS - For the years ended December 31,

2014 and 2013
Consolidated Statements of Financial Position 3
Consolidated Statements of Comprehensive Income 5
Consolidated Statements of Changes in Equity 6
Consolidated Statements of Cash Flows 7
Notes to Consolidated Financial Statements 8
SUPPLEMENTARY INFORMATION
I. Statements of Financial Position - Parent Only 127
II. Statements of Comprehensive Income - Parent Only 128
III. Statements of Changes in Equity - Parent Only 129
IV. Statements of Cash Flows - Parent Only 130

DECEMBER 31, 2014 AND 2013
December 31, December 31,

Notes 2014 2013
US$ US$
ASSETS
CURRENT ASSETS
Cash and cash equivalents 5 332,697,212 326,567,443
Other financial assets 6 77,068,485 79,117,030
Trade accounts receivable 7
Related parties - net of allowance for impairment losses of US$ 1,300,000
as of December 31, 2014 and nil as of December 31, 2013 47 11,262,337 30,095,112
Third parties - net of allowance for impairment losses of US$ 1,438,586
as of December 31, 2014 and US$ 2,195,289 as of December 31, 2013 159,142,372 127,413,540
Unbilled receivables 8
Related parties 47 227,242 -
Third parties 2,530,192 3,191,556
Estimated earnings in excess of billings on contracts 9 93,178,949 75,000,049
Current maturities of other accounts receivable
Related parties 47 3,355,077 6,888,692
Third parties 10 5,568,346 3,766,544
Inventories - net of allowance for decline in value of
US$ 1,224,180 as of December 31, 2014 and
US$ 4,353,991 as of December 31, 2013 11 13,596,283 17,277,837
Prepaid taxes 12 72,144,130 49,539,732
Other current assets 13 58,525,281 40,324,256
Sub total 829,295,906 759,181,791
Assets held for sale 53 2,123,402 163,767
Total Current Assets 831,419,308 759,345,558
NONCURRENT ASSETS
Restricted cash 1,341,408 558,568
Other accounts receivable - net of current maturities
Related parties - net of allowance for impairment losses of US$ 2,035,681
as of December 31, 2014 and US$ 2,694,429 as of December 31, 2013 47 36,566,963 48,184,815
Third parties 10 1,639,265 2,046,507
Claim for tax refund 15 9,870,463 13,503,521
Exploration and evaluation assets 16 26,960,922 24,936,693
Mining properties - net of accumulated amortization of US$ 5,180,669 as of
December 31, 2014 and US$ 3,220,267 as of December 31, 2013 17 14,456,847 13,257,221
Deferred stripping cost 2,308,390 2,308,390
Investments in associates 14 271,766,662 286,550,051
Investments in jointly-controlled entities 18 14,487,529 21,102,394
Advances and other noncurrent assets 20 9,833,114 5,689,966
Property, plant and equipment - net of accumulated
depreciation of US$ 407,233,241 as of December 31, 2014
and US$ 332,002,674 as of December 31, 2013 21 660,415,384 695,684,596
Intangible assets 22 284,981,837 321,144,321
Goodwill 23 119,454,101 119,454,101
Refundable deposits 4,137,011 2,488,046
Deferred tax assets 41 713,088 68,568
Total Noncurrent Assets 1,458,932,984 1,556,977,758
TOTAL ASSETS 2,290,352,292 2,316,323,316
See accompanying notes to consolidated financial statements

which are an integral part of the consolidated financial statements.
-3-
DECEMBER 31, 2014 AND 2013 (Continued)

Notes 2014 2013
US$ US$
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Bank loans 24 86,249,677 37,735,393
Trade accounts payable 25
Related parties 47 19,995 248,087
Third parties 104,221,448 63,447,977
Billings in excess of estimated earnings recognized 9 33,293,257 33,297,895
Other accounts payable
Related parties 47 1,402,711 1,505,453
Third parties 12,343,683 8,610,154
Taxes payable 26 7,071,099 5,558,500
Accrued expenses 27 86,109,922 118,780,781
Advances from customers 493,458 11,145
Dividend payable 455,000 266,149
Current maturities of long-term liabilities
Long-term loans 28 15,831,756 12,756,345
Lease liabilities 29 31,631,848 48,014,837
Bonds payable 30 17,165,617 17,165,617
Total Current Liabilities 396,289,471 347,398,333
Liabilities directly associated with assets held for sale 53 446,818 -
NONCURRENT LIABILITIES
Long-term liabilities - net of current maturities
Long-term loans 28 71,194,730 87,933,439
Lease liabilities 29 20,819,823 51,794,506
Bonds payable - net 30 767,837,029 761,974,054
Other long-term liability - third party 1,488,866 194,779
Deferred tax liabilities 41 90,721,355 93,474,531
Advances
Related party 47 1,729,954 1,729,954
Third party - 91,199
Employment benefits 31 27,321,396 21,860,883
Total Noncurrent Liabilities 981,113,153 1,019,053,345
Total Liabilities 1,377,849,442 1,366,451,678
EQUITY
Capital stock - Rp 100 par value per share
Authorized - 17,000 million shares
Subscribed and paid-up - 5,210,192,000 shares in 2014 and 2013 32 56,892,154 56,892,154
Additional paid-in capital 33 250,847,921 250,847,921
Other components of equity 1d 57,441,222 57,507,366
Retained earnings 46
Appropriated 5,312,496 5,312,496
Unappropriated 321,845,495 349,360,285
Total equity attributable to owners of the Company 692,339,288 719,920,222
Non-controlling interest 34 220,163,562 229,951,416
Total Equity 912,502,850 949,871,638

TOTAL LIABILITIES AND EQUITY 2,290,352,292 2,316,323,316

-4-
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED
Notes 2014 2013

US$ US$
REVENUES 35,47
Contracts and service revenues 966,477,039 860,780,903
Sales of coal 143,031,272 2,613,289
Total Revenues 1,109,508,311 863,394,192
COST OF CONTRACTS AND GOODS SOLD 36,47

Cost of contracts and services (809,145,967) (667,324,439)
Cost of coals sold (139,326,730) (2,663,166)
Total Cost of Contracts and Goods Sold (948,472,697) (669,987,605)
GROSS PROFIT 161,035,614 193,406,587
Equity in net profit of associates and jointly-controlled entities 14,18 73,482,756 102,511,466
Investment income 38,47 10,858,840 8,892,755
General and administrative expenses 37 (132,149,607) (154,576,193)
Finance cost 39 (69,434,593) (114,112,063)
Amortization and impairment of intangible assets 22 (36,598,221) (52,344,736)
Others - net 40 (9,499,112) (26,319,570)
LOSS BEFORE TAX (2,304,323) (42,541,754)
TAX EXPENSE 41 (28,194,606) (11,256,349)
LOSS FOR THE YEAR (30,498,929) (53,798,103)
OTHER COMPREHENSIVE (LOSS) INCOME:

Translation adjustments (41,946) (616,827)
Unrealized gain (loss) on derivative

financial instrument (hedging reserve) 14 (24,198) 5,085,920
Other comprehensive (loss) income - net (66,144) 4,469,093
TOTAL COMPREHENSIVE LOSS FOR THE YEAR (30,565,073) (49,329,010)
INCOME (LOSS) ATTRIBUTABLE TO:

Owners of the Company (27,514,790) (62,487,116)
Non-controlling interest 34 (2,984,139) 8,689,013
Total (30,498,929) (53,798,103)
TOTAL COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO:

Owners of the Company (27,580,934) (58,018,023)
Non-controlling interests (2,984,139) 8,689,013
Total (30,565,073) (49,329,010)
LOSS PER SHARE 43

Basic (0.0053) (0.0120)
Diluted (0.0053) (0.0120)

-5-
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED
Other Components of Equity

Unrealized loss
on derivative Equity attributable
Additional financial instrument Other capital - Cumulative translation Retained earnings to owners of Non-controlling
Note Capital stock paid-in capital (hedging reserve) employee stock option adjustments Other equity Appropriated Unappropriated the Company interests Total equity
US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$
Balance as of January 1, 2013 56,892,154 250,847,921 (11,962,383) 7,816,296 - 57,184,360 4,283,901 431,875,996 796,938,245 225,581,822 1,022,520,067
Effect of settlement
of MTU acquisition - - - - - - - - - 2,200,218 2,200,218
Cash dividend 46 - - - - - - - (19,000,000) (19,000,000) - (19,000,000)
Appropriated earnings 46 - - - - - - 1,028,595 (1,028,595) - - -
Dividend from subsidaries - - - - - - - - - (6,519,637) (6,519,637)
Total comprehensive income - - 5,085,920 - (616,827) - - (62,487,116) (58,018,023) 8,689,013 (49,329,010)
Balance as of December 31, 2013 56,892,154 250,847,921 (6,876,463) 7,816,296 (616,827) 57,184,360 5,312,496 349,360,285 719,920,222 229,951,416 949,871,638
Dividend from subsidaries - - - - - - - - - (6,803,715) (6,803,715)
Total comprehensive income - - (24,198) - (41,946) - - (27,514,790) (27,580,934) (2,984,139) (30,565,073)
Balance as of December 31, 2014 56,892,154 250,847,921 (6,900,661) 7,816,296 (658,773) 57,184,360 5,312,496 321,845,495 692,339,288 220,163,562 912,502,850

-6-
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED
2014 2013
US$ US$
CASH FLOWS FROM OPERATING ACTIVITIES

Cash receipts from customers 983,991,890 797,071,485
Cash paid to suppliers (724,648,132) (426,681,094)
Cash paid to directors, commissioners and employees (176,414,535) (221,434,416)
Cash generated from operations 82,929,223 148,955,975

Interest received 18,594,779 6,447,494
Receipt of claim for tax refund 9,820,066 4,819,020
Finance cost paid (64,218,670) (74,536,798)
Taxes paid (50,404,432) (44,044,933)
Payment for deposit of claim for tax refund (3,802,522) -
Net Cash (Used in) Provided by Operating Activities (7,081,556) 41,640,758
CASH FLOWS FROM INVESTING ACTIVITIES

Dividends received 92,973,304 113,532,968
Settlement of other account receivable from related party 5,665,857 -
Proceeds from sale of property and assets held for sale 3,623,729 2,372,746
Withdrawal of other financial assets 2,450,171 109,860,957
Proceeds from sale of an investment in a jointly-controlled entity 1,644,000 -
Acquisition of property and equipment (66,732,287) (49,128,910)
Payment for advances and other non current assets (2,561,235) (3,303,024)
Acquisition of intangible assets (1,841,044) (2,746,686)
Payment for exploration and evaluation assets (1,030,584) (14,223,812)
Placement for other financial assets (1,005,539) (109,178,460)
Payment for additional investment in associates (800,000) -
Proceeds from acquisitions of associates and subsidiaries - 4,443,904
Proceeds from advances and other noncurrent assets - 117,003
Payment for mining properties - (6,854,166)
Investment in jointly-controlled entities - (4,736,933)
Net Cash Provided by Investing Activities 32,386,372 40,155,587
CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from bank loans, long-term loans and lease liabilities 77,246,000 90,432,755
Proceeds from other accounts payable 371,886 -
Payments of bank loans, long-term loans and lease liabilities (89,646,496) (413,652,000)
Payments of dividends to non-controlling interest (6,428,996) (6,806,103)
Payment of other accounts payable (194,779) (53,049)
Payments of dividends to shareholders - (19,000,000)
Proceeds from bonds issuance - 500,000,000
Proceeds from sale and leaseback transaction - 8,082,059
Payments of bonds payable and premium - (241,212,500)
Payments of bonds issuance costs - (15,499,379)
Net Cash Used in Financing Activities (18,652,385) (97,708,217)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 6,652,431 (15,911,872)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 326,567,443 350,375,666
Effect of foreign exchange rate changes (522,662) (7,896,351)
CASH AND CASH EQUIVALENTS AT END OF YEAR 332,697,212 326,567,443

-7-
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2014 AND 2013 AND FOR THE YEARS THEN ENDED
1. GENERAL
a. Establishment and General Information
PT. Indika Energy Tbk (the “Company”) was established based on notarial deed No. 31 dated October 19,
2000 of Hasanal Yani Ali Amin, SH, public notary in Jakarta. The deed of establishment was approved by
the Minister of Justice and Human Rights of the Republic of Indonesia in his decision letter No. C-13115
HT.01.01.TH.2001 dated October 18, 2001, and was published in State Gazette No. 53, Supplement
No. 6412 dated July 2, 2002. The Company's articles of association have been amended several times,
most recently by (i) notarial deed No. 232 dated June 26, 2009 of Sutjipto, SH, notary in Jakarta, to conform
with Bapepam-LK’s Rule No. IX.J.1 pertaining to the Main Articles of Association of Entity that undertakes
Public Offering of Equity Securities and Public Entity. Such change was reported to the Minister of Law and
Human Rights of the Republic of Indonesia in September 2009, (ii) notarial deed No. 11 dated June 14,
2012 of Andalia Farida, SH, MH, notary in Jakarta, regarding the implementation of Employee and
Management Stock Option Program (EMSOP) for Company’s shares by issuing new shares amounting to 2
percent (%) from total paid-up capital and to grant authority to the Board of Commisioners to exercise the
increase in the Company’s paid-up capital so that the paid-up capital increase from
Rp 520,714,200,000 (equivalent to US$ 56,856,461) to Rp 521,019,200,000 (equivalent to
US$ 56,892,154). Such change were reported to the Minister of Law and Human Rights of the Republic of
Indonesia with letter No. AHU-0062213.AH.01.09 dated July 9, 2012, (iii) notarial deed No. 14 dated June
14, 2012 of Andalia Farida, SH, MH, notary in Jakarta, pertaining to changes to articles 14 and 17
concerning the terms of service of the Directors and Board of Commissioners and changes in the Board of
Commissioners. The changes were received and recorded in the Department of Law and Human Rights of
the Republic of Indonesia through letter No. AHU-0100824.AH.01.09 dated November 22, 2012.
In accordance with article 3 of the Company’s articles of association, the scope of its activities are
mainly to engage in trading, construction, mining, transportation and services. The Company started
its commercial operations in 2004. As of December 31, 2014 and 2013, the Company and its
subsidiaries had total number of employees of 7,585 (including 3,747 non-permanent employees) and
8,259 (including 4,057 non-permanent employees), respectively.
th
The Company is domiciled in Jakarta, and its head office is located at Mitra Building, 7 Floor,
Jl. Jenderal Gatot Subroto Kav. 21, Jakarta.
At December 31, 2014 and 2013, the Company’s management consisted of the following:
December 31, 2014

Vice President Commissioner : Agus Lasmono
Commissioner : Indracahya Basuki
: Ir. Pandri Prabono-Moelyo
Independent Commissioners : Anton Wahjo Soedibjo
Dedi Aditya Sumanagara

Vice President Director (Operation and Finance) : M. Arsjad Rasjid P.M.
Director of Energy Resources (Coal, Oil and Gas) : Azis Armand
Director of Energy Infrastructure (Power Plant)
(Unaffiliated) : Eddy Junaedy Danu
Director of Energy Infrastructure (Sea Logistics) : Rico Rustombi
Director of Energy Services (Oil and Gas) : Joseph Pangalila
Director of Energy Services (Mining) and Business
Development : Richard Bruce Ness
-8-
DECEMBER 31, 2014 AND 2013 AND FOR THE YEARS THEN ENDED (Continued)
December 31, 2013

Vice President Commissioner : Agus Lasmono
Commissioner : Indracahya Basuki
: Ir. Pandri Prabono-Moelyo
Independent Commissioners : Anton Wahjo Soedibjo
Dedi Aditya Sumanagara

Vice President Director (Operation and Finance) : M. Arsjad Rasjid P.M.
Director of Energy Resources (Coal, Oil and Gas) : Azis Armand
Director of Energy Services (Mining) and Energy Infrastructure
(Power Plant) : Eddy Junaedy Danu
Director of Energy Infrastructure (Sea Logistics) : Rico Rustombi
Director of Energy Services (Oil and Gas) : Joseph Pangalila
Director of Business Development (Unafilliated) : Richard Bruce Ness
The chairman and members of the audit committee at December 31, 2014 and 2013 are as follows:
December 31,
2014 and 2013
Chairman : Anton Wahjo Soedibjo

Members : Deddy Hariyanto
Maringan Purba Sibarani
At December 31, 2014 and 2013, the Company’s Corporate Secretary is Dian Paramita.
At December 31, 2014 and 2013, the Company’s Head of Internal Audit is Rajiv Krishna.
-9-
b. Subsidiaries
The Company has ownership interest of more than 50%, directly or indirectly, in the following subsidiaries:
Percentage of Ownership Total Assets Before Elimination

Start of Commercial December 31, December 31, December 31, December 31,
Subsidiary Domicile Nature of Business Operations 2014 2013 2014 2013
US$ US$
PT Indika Inti Corpindo (IIC) and subsidiaries Jakarta Investment and general trading 1998 99.99% 99.99% 435,271,124 425,396,158
Asia Prosperity Coal B.V. (APC) *) Netherlands Financing 2004 99.99% 99.99% 359,666 346,685
PT Citra Indah Prima (CIP) and subsidiaries *) Jakarta Investment Development stage 99.92% 99.92% 1,486,510 2,426,988
PT Sindo Resources (SR) *) Jakarta Mining Development stage 89.93% 89.93% 599 692
PT Melawi Rimba Minerals (MRM) *) Jakarta Mining Development stage 89.93% 89.93% 2 21
Indika Capital Pte. Ltd. (ICPL) and subsidiary *) Singapore Marketing and investment 2009 99.99% 99.99% 87,945,366 86,503,845
Indika Capital Resources Limited (ICRL) *) British Virgin Islands Financing 2009 99.99% 99.99% 60,655,434 60,499,491
PT Indy Properti Indonesia (IPY) Jakarta Development, services and trading Development stage 100% - 20,721 -
PT Indika Indonesia Resources (IIR) and subsidiaries Jakarta Mining and trading Development stage 100% 100% 403,778,714 394,094,831
PT. Mitra Energi Agung (MEA) *) East Kalimantan Coal Mining Development stage 60% 60% 6,518,192 6,517,976
Indika Capital Investments Pte. Ltd (ICI) *) Singapore Coal and mineral trading and general Development stage 100% 100% 128,803,065 106,411,661
trading activities
PT Indika Energi Trading (IET) *) Jakarta Trading Development stage 60% - 142,999 -
- 10 -

US$ US$
PT Multi Tambangjaya Utama (MUTU) *) Central Kalimantan Coal Mining 2012 85% 85% 66,508,122 74,357,872
PT Indika Multi Energi (IME) and subsidiary Jakarta Trading, development, industrial, Development stage 100% 100% 910,885 1,816,274
agriculture, printing, workshop,
transportation and services
PT Indika Multi Daya Energi (IMDE) *) Jakarta Trading, development, services, Development stage 100% 100% 592,159 1,440,487
workshop, industrial, transportation,
printing and agriculture
PT Tripatra Engineers and Constructors (TPEC) Jakarta Provision of consultancy services, 1989 100% 100% 311,905,709 290,857,972
and subsidiary construction business and trading
Tripatra (Singapore) Pte. Ltd (TS) *) Singapore Investment 2006 100% 100% 30,822,143 32,048,953
and subsidiary
Tripatra Investment Limited (TRIL) *) British Virgin Islands Investment 2007 100% 100% 15,314,724 4,811,341
PT Tripatra Engineering (TPE) Jakarta Consultation services for construction, 1971 100% 100% 25,641,705 13,821,162
industry and infrastructure
- 11 -

US$ US$
PT Petrosea Tbk (Petrosea) and subsidiaries Jakarta Engineering, construction, mining 1972 69.80% 69.80% 467,732,191 509,242,846
and other services
PTP Investments Pte. Ltd. (PTPI) *) Singapore Investment Dormant 69.80% 69.80% 897,269 1,014,653
PT Petrosea Kalimantan (PTPK) *) Balikpapan Trading and contracting services Dormant 69.80% 69.80% 42,231 42,614
PT POSB Infrastructure Kalimantan (PTPIK) *) Balikpapan Special port management Dormant 69.80% 69.80% 181,543 152,543
PT Indika Power Investments Pte. Ltd., Singapore Investment 2006 100% 100% 42,296,239 45,133,374
Singapore (IPI)
PT Indika Infrastruktur Investindo (III) Jakarta Investment 2007 100% 100% 16,732,032 15,041,541
PT Indika Energy Infrastructure (IEI) Jakarta Trading, development and services 2010 100% 100% 480,937,448 499,515,023
and subsidiaries
PT LPG Distribusi Indonesia (LDI) Jakarta Trading, industry, mining and services 2010 100% 100% 2,474,044 2,154,927
and subsidiaries *)
PT Wahida Arta Guna Lestari (WAGL) *) Tasikmalaya Operations of Station for Gas Filling 2010 100% 100% 1,016,013 1,058,929
and Delivery (SPPBE)
PT Satya Mitra Gas (SMG) *) Semarang Operations of Station for Gas Filling 2010 100% 100% 792,595 870,339
(SPBE)
- 12 -

US$ US$
PT Jati Warna Gas Utama (JGU) *) Jakarta Operations of station for Gas Filling Development stage 100% 100% 26,371 26,371
and Delivery (SPPBE)
PT Indika Logistic & Support Services (ILSS) Jakarta Port operation 2011 100% 100% 27,160,287 21,650,635
and subsidiary *)
PT Kuala Pelabuhan Indonesia (KPI) *) Timika, Irian Jaya Port operation 1995 100% 100% 15,946,332 11,614,904
PT Indika Multi Energi Internasional (IMEI) Jakarta Trading, development, industrial, Development stage 100% 100% 11,103 20,510
and subsidiary *) agriculture, printing,workshop,
PT Prasarana Energi Indonesia (PEI) Jakarta Trading, development, industrial, Development stage 100% - - -
and subsidiary *) agriculture, printing,workshop,
PT Prasarana Energi Cirebon (PEC) *) Jakarta Trading, development, industrial, Development stage 100% - - -
agriculture, printing,workshop,
PT Mitrabahtera Segara Sejati Tbk (MBSS) Jakarta Sea logistics and transhipment 1994 51% 51% 351,616,622 352,782,219
and subsidiaries *)
- 13 -
US$ US$
PT Mitra Hartono Sejati (MHS) **) Jakarta Shipping Not yet operational 25.50% 25.50% 2,099,698 2,192,258
PT Mitra Swire CTM (MSC) **) Jakarta Shipping 2008 35.68% 35.68% 28,390,850 28,621,987
Mitra Bahtera Segarasejati Pte. Ltd. (MBS) **) Singapore Shipping Not yet operational 51% 51% 712,239 934,019
Mitra Jaya Offshore (MJO) **) Jakarta Shipping Not yet operational 26.01% 26.01% 964,630 984,494
PT Mitra Alam Segara Sejati (MASS) **) Jakarta Shipping 2012 31% 31% 18,290,189 19,120,530
Indo Integrated Energy B.V. (IIE BV) Netherlands Financing 1984 100% 100% 4,523,686 4,826,644
Indo Integrated Energy II BV (IIE II BV) Netherlands Financing 2009 100% 100% 3,798,414 3,676,500
Indo Energy Finance BV (IEFBV) and subsidiary Netherlands Financing 2011 100% 100% 307,395,681 304,147,316
Indo Energy Capital BV *) Netherlands Financing 2011 100% 100% 304,460,919 304,171,072
Indo Energy Finance II BV (IEFBV II) and subsidiary Netherlands Financing 2012 100% 100% 524,013,125 520,303,585
Indo Energy Capital II BV (IECBV II) *) Netherlands Financing 2012 100% 100% 521,341,828 517,477,073
*) Indirect ownership
**) Indirectly acquired through MBSS
- 14 -
Year 2014
On January 21, 2014, ICI and PT Mitra Pratama Prima established PT Indika Energy Trading (IET) with
ownership of 60% by ICI. IET will be engaged in activities covering trading, development, services,
workshop, industrial, transportation, printing and agriculture.
On January 21, 2014, IMEI and IEI established PT Prasarana Energi Indonesia (PEI) which will be
engaged in activities covering trading, development, services, workshop, industrial, transportation,
printing and agriculture.
On February 24, 2014, PEI and IMEI established PT Prasarana Energi Cirebon (PEC) which will be
engaged in activities covering trading, development, services, workshop, industrial, transportation,
printing and agriculture.
On October 27, 2014, the Company and IIC established PT Indy Properti Indonesia, which will be
engaged in activities covering development, services and trading.
Year 2013
On August 30, 2013, MBSS and Swire CTM Bulk Logistics Limited (“Swire”) convert their receivable from
MSC amounting to Rp 26,667,281,000 (equivalent to US$ 2,893,340) and Rp 11,835,977,000 (equivalent to
US$ 1,280,860), respectively into 26,667,281 and 11,835,977 shares, thereby decreasing MBSS
percentage of ownership in MSC into 69.97%.
The changes were recorded in notarial deed No. 217 of notary Lakshmi Anggraeni, S.H., M.Kn. that
was approved by Minister of Law and Human Rights of the Republic of Indonesia in his decision letter
No. AHU-45747.AH.01.02.Tahun 2013 dated August 30, 2013.
The Company’s ownership in IIC, TPE, TPEC, TS, IEC BV., IEF B.V., IEC II B.V., IEF II B.V., and
IIE II B.V. were used as security for the bonds payable on first priority basis (Note 30). IIC’s indirect
ownership in SR and MRM through CIP were pledged to PT Intan Resource Indonesia (IRI) as a result
of the Assignment Agreement for Coal Marketing Right Agreement entered between IRI and CIP
(Note 49).
The Company’s ownership in IPI was used as collateral in relation to a related party’s loan facility
(Note 49).
c. Public Offering of Shares of the Company and its Subsidiaries
On June 2, 2008, the Company obtained the notice of effectivity from the Chairman of the Capital
Market and Financial Institution Supervisory Agency in his letter No. S-3398/BL/2008 for its public
offering of 937,284,000 shares. On June 11, 2008, these shares were listed on the Indonesia Stock
Exchange.
As of December 31, 2014 and 2013, all of the Company's 5,210,192 thousand outstanding shares were
listed on the Indonesia Stock Exchange.
d. Refloating Petrosea’s shares owned by the Company to public

To comply with the BAPEPAM-LK’s regulations regarding Public Company Take-Over, the Company
has refloated to the public 25,125,000 shares representing 25% of Petrosea’s issued shares. The
Company also stated its letters dated February 9, 2012 that Citigroup Global Markets Limited and
Macquarie Capital (Singapore) Pte. Limited, as initial purchasers, have an option to buy additional
shares of Petrosea with a maximum of 3,782,000 shares. The option was exercised on February 24,
2012.
- 15 -
The Company recognized the difference between proceeds from relfloating Petrosea’s shares and
carrying amount of investment as other equity with the following details:
US$
Proceeds from shares re-floating - net 106,662,427

Carrying amount of investment (49,478,067)
Other equity 57,184,360
e. Coal Contract of Work ("CCoW")

MUTU is a CCoW Company in the Province of Central Kalimantan with approximately 24,970
hectares (ha). The CCoW was signed in 1997 with the Government of the Republic of Indonesia.
CCoW license covers the locations of Kananai, Swalang-Mea, Malintut Utara, Kananai Dua, Kananai Timur,
Siung Malopot, Malintut Selatan, Tawo Karau, Lumuh dan Sungai Muntok which were obtained on May 4,
2009 and will mature on May 3, 2039.
In accordance with the CCoW, MUTU shall pay royalties to the Government on the exploitation of coal
mineral at 13.5% of the coal produced, in cash amount at FOB (Free on Board) or at the price of the
contractor’s final load out at sale point.
f. Production Operation Mining Business Permit
Based on the Decree of the Regent of Kutai Timur No. 540.1/K.641/ITK/VII/2012 dated June 6, 2012,
MEA was granted a Production Operation Mining Business Permit for 20 years for 5,000 hectares,
located in the Kutai Timur Regency, East Kalimantan Province. However, as of the issuance date of
the consolidated financial statements, MEA is still under exploration stage to determine its coal
reserve.
2. ADOPTION OF NEW AND REVISED STATEMENTS OF FINANCIAL ACCOUNTING STANDARDS

(PSAK) AND INTERPRETATION OF PSAK (ISAK)
a. Standards effective in the current period

In the current year, the Company and its subsidiaries adopted the following new standards and
interpretations issued by the Financial Accounting Standard Board of the Indonesian Institute of
Accountants that are relevant to its operations and effective for accounting period beginning on
January 1, 2014.
 ISAK 27, Transfers of Assets from Customers

ISAK 27 addresses the accounting by recipients for transfers of property, plant and equipment
from ‘customers’ and concludes that when the item of property, plant and equipment transferred
meets the definition of an asset from the perspective of the recipient, the recipient should
recognise the asset at its fair value on the date of the transfer, with the credit being recognised as
revenue in accordance with PSAK 23, Revenue.
The application of ISAK 27 has no effect on the amounts reported in the current and prior year
because the Company and its subsidiaries have not entered into any transactions of this nature.
 ISAK 28, Extinguishing Financial Liabilities with Equity Instruments

ISAK 28 provides guidance on the accounting for the extinguishment of a financial liability by the
issue of equity instruments. Specifically, ISAK 28 requires that equity instruments issued under
such arrangement will be measured at their fair value, and any difference between the carrying
amount of the financial liability extinguished and the consideration paid will be recognized in profit
or loss.
The application of ISAK 28 has no effect on the amounts reported in the current and prior year
because the Company and its subsidiaries have not entered into any transactions of this nature.
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 ISAK 29, Stripping Cost in the Production Phase of a Surface Mine

ISAK 29 applies to waste removal costs that are incurred in surface mining activity during the
production phase of a mine (“production stripping costs”). ISAK 29 requires that the costs from this
waste removal activity (“stripping”) which provide improved access to ore is recognized as a non-
current asset (“stripping activity asset”) when certain criteria are met, whereas the costs of normal
ongoing operational stripping activities are accounted for in accordance with PSAK 14, Inventories.
The stripping activity asset is accounted for as an addition to, or as an enhancement of, an
existing asset and classified as tangible or intangible according to the nature of existing asset of
which it forms part.
ISAK 29 should be applied to production stripping costs incurred on or after the beginning of the
earliest period presented. Any existing deferred stripping costs asset balances at the date of
transition are written off to opening retained earnings.
b. Standard and interpretation in issue not yet effective
The following standards are effective for periods beginning on or after January 1, 2015, with early
application not permitted:
 PSAK 1 (revised 2013), Presentation of Financial Statements

The amendments to PSAK 1 introduce new terminology for the statement of comprehensive
income. Under the amendments to PSAK 1, the statement of comprehensive income is renamed
as a “statement of profit or loss and other comprehensive income”. The amendments to PSAK 1
retain the option to present profit or loss and other comprehensive income in either a single
statement or in two separate but consecutive statements. However, the amendments to PSAK 1,
require additional disclosures to be made in the other comprehensive income section such that
items of other comprehensive income are grouped into two categories: (1) items that will not be
reclassified subsequently to profit or loss; and (2) items that may be reclassified subsequently to
profit or loss when specific conditions are met.
 PSAK 4 (revised 2013), Separate Financial Statements
PSAK 4 (revised 2009), “Consolidated and Separate Financial Statements” has been renamed
PSAK 4 (revised 2013), “Separate Financial Statements” which continues to be a standard dealing
solely with separate financial statements. The existing guidance for separate financial statements
remains unchanged.
 PSAK 15 (revised 2013), Presentation of Financial Statements
PSAK 15 (revised 2009), “Investments in Associates” has been renamed PSAK 15 (revised 2013),
“Investments in Associates and Joint Ventures”. The scope of the revised standard was expanded
to cover entities that are investors with joint control of, or significant influence over, an investee.
 PSAK 24 (revised 2013), Employee Benefits
The amendments to PSAK 24 change the accounting for defined benefit plans and termination
benefits. The most significant change relates to the accounting for changes in defined benefit
obligations and plan assets. The amendments require the recognition of changes in defined
benefit obligations and in fair value of plan assets when they occur, and hence eliminate the
'corridor approach' permitted under the previous version of PSAK 24 and accelerate the
recognition of past service costs. The amendments require all actuarial gains and losses to be
recognised immediately through other comprehensive income in order for the net pension asset or
liability recognised in the consolidated statement of financial position to reflect the full value of the
plan deficit or surplus.
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 PSAK 46 (revised 2014), Income Taxes
The amendments to PSAK 46: (1) remove references to final tax which was previously scoped in
the standard; and (2) establish a rebuttable presumption that the carrying amount of an investment
property measured using the fair value model in PSAK 13, Investment Property will be recovered
entirely through sale.
Under the amendments, unless the presumption is rebutted, the measurement of the deferred tax
liability or deferred tax asset is required to reflect the tax consequences of recovering the carrying
amount of the investment property through sale. The “sale” presumption is rebutted if the
investment property is depreciable and the investment property is held within a business model
whose objective is to consume substantially all of the economic benefits embodied in the
investment property over time, rather than through sale.
 PSAK 48 (revised 2014), Impairment of Assets
PSAK 48 has been amended to incorporate the requirements of PSAK 68, Fair Value
Measurement.
 PSAK 50 (revised 2014), Financial Instruments: Presentation
The amendments to PSAK 50 clarify existing application issues relating to the offsetting
requirements. Specifically, the amendments clarify the meaning of “currently has a legal
enforceable right of set-off” and “simultaneous realization and settlement.” The amendments also
clarify that income tax on distributions to holders of an equity instrument and transaction costs of
an equity transaction should be accounted for in accordance with PSAK 46.
 PSAK 55 (revised 2014), Financial Instruments: Recognition and Measurement
The amendments to PSAK 55 provide relief from the requirement to discontinue hedge accounting
when a derivative designated as a hedging instrument is novated under certain circumstances.
The amendments also clarify that any change to the fair value of the derivative designated as a
hedging instrument arising from the novation should be included in the assessment and
measurement of hedge effectiveness. Further, the amendments clarify the accounting for
embedded derivatives in the case of a reclassification of a financial asset out of the “fair value
through profit or loss” category – see discussion in ISAK 26.
This standard is also amended to incorporate the requirements of PSAK 68, Fair Value
Measurement.
 PSAK 60, (revised 2014) Financial Instruments: Disclosures
The amendments to PSAK 60 increase the disclosure requirements for transactions involving
transfers for financial assets. These amendments are intended to provide greater transparency
around risk exposures when a financial asset is transferred but the transferor retains some level of
continuing exposure in the asset. The amendments also require disclosures where transfers of
financial assets are not evenly distributed throughout the period. Further, entities are required to
disclose information about rights of offset and related arrangements (such as collateral posting
requirements) for financial instruments under an enforeceable master netting agreement or similar
arrangement.
 PSAK 65, Consolidated Financial Statements

PSAK 65 replaces the part of PSAK 4 (Revised 2009), Consolidated and Separate Financial
Statements, that deals with consolidated financial statements, and ISAK 7, Consolidation – Special
Purpose Entities.
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Under PSAK 65, there is only one basis for consolidation for all entities, and that basis is control. A
more robust definition of control has been developed that includes three elements: (a) power over
an investee; (b) exposure, or rights, to variable returns from its involvement with the investee; and
(c) ability to use its power over the investee to affect the amount of the investor’s returns. PSAK 65
also adds application guidance to assist in assessing whether an investor controls an investee in
complex scenarios.
PSAK 65 requires investors to reassess whether or not they have control over the investees on
transition, and requires retrospective application.
 PSAK 66, Joint Arrangements
PSAK 66 replaces PSAK 12, Interest in Joint Ventures. PSAK 66 deals with how a joint
arrangement should be classified where two or more parties have joint control. Under PSAK 66,
joint arrangements are classified as joint operations or joint ventures, depending on the rights and
obligations of the parties to the arrangements. In contrast, under PSAK 12, there are three types of
joint arrangements: jointly controlled entities, jointly controlled assets and jointly controlled
operations.
The existing policy choice of proportionate consolidation for jointly controlled entities has been
eliminated. Joint ventures under PSAK 66 are required to be accounted for using the equity
method of accounting, whereas jointly controlled entities under PSAK 12 can be accounted for
using the equity method of accounting or proportionate consolidation.
The transition provisions of PSAK 66 require entities to apply the standard at the beginning of the
earliest period presented upon adoption.
 PSAK 67, Disclosures of Interests in Other Entities
PSAK 67 is applicable to entities that have interests in subsidiaries, joint arrangements, associates
or unconsolidated structured entities. The standard establishes disclosure objectives and specifies
minimum disclosures that entities must provide to meet those objectives. The objective of PSAK
67 is that an entity should disclose information that helps users of financial statements evaluate
the nature of, and risks associated with, its interests in other entities and the effects of those
interests on its financial statements.
 PSAK 68, Fair Value Measurement
PSAK 68 establishes a single source of guidance for fair value measurements and disclosures
about fair value measurements. The standard does not change the requirements regarding which
items should be measured or disclosed at fair value.
PSAK 68 defines fair value, establishes a framework for measuring fair value, and requires
disclosure about fair value measurements. The scope of PSAK 68 is broad; it applies to both
financial instrument items and non-financial instrument items for which other PSAK require or
permit fair value measurements and disclosures about fair value measurements, except in
specified circumstances. In general, the disclosure requirements in PSAK 68 are more extensive
than those required by the current standards. For example, quantitative and qualitative disclosures
based on the three-level fair value hierarchy currently required for financial instruments only under
PSAK 60, Financial Instruments: Disclosures will be extended by PSAK 68 to cover all assets and
liabilities within its scope.
PSAK 68 is applied prospectively; the disclosure requirements need not be applied in comparative
information provided for periods before initial application of the standard.
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 ISAK 26, Reassessment of Embedded Derivatives

The amendments to ISAK 26 clarify the accounting for embedded derivatives in the case of a
reclassification of a financial asset out of the “fair value through profit or loss” category.
The management anticipates that these standards will be adopted in the Company and its subsidiaries’
consolidated financial statements for the annual period beginning January 1, 2015. The application of
these standards may have significant impact on amounts reported in the consolidated financial
statements.
The application of PSAK 1 will impact the presentation of the Other Comprehensive Income items of
the Company and its subsidiaries’ consolidated financial statements. The application of the
amendments to PSAK 24 will have impact on the amounts reported in respect of the Company and its
subsidiaries’ defined benefit plans. The application of PSAK 65 may result in the Company and its
subsidiaries no longer consolidating some of its investees, and consolidating investees that were not
previously consolidated. In addition, the application of PSAK 66 may result in changes in the
accounting of the Company and its subsidiaries’ jointly controlled entity that is currently accounted for
using proportionate consolidation.
However, the management have not yet performed a detailed analysis of the impact of the application
of these standards and hence have not yet quantified the extent of the impact
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. Statement of Compliance
The consolidated financial statements have been prepared in accordance with Indonesian Financial
Accounting Standards. These financial statements are not intended to present the financial position,
results of operations and cash flows in accordance with accounting principles and reporting practices
generally accepted in other countries and jurisdictions.
b. Basis of Preparation
The consolidated financial statements, except for the consolidated statements of cash flows, are
prepared under the accrual basis of accounting. The presentation currency used in the preparation of
the consolidated financial statements is the United States Dollar (US$), while the measurement basis
is the historical cost, except for certain accounts which are measured on the bases described in the
related accounting policies.
The consolidated statements of cash flows are prepared using the direct method with classifications
of cash flows into operating, investing and financing activities.
c. Basis of Consolidation
The consolidated financial statements incorporate the financial statements of the Company and
entities controlled by the Company (its subsidiaries). Control is achieved where the Company has the
power to govern the financial and operating policies of an entity so as to obtain benefits from its
activities.
Income and expenses of subsidiaries acquired or disposed of during the year are included in the
consolidated statements of comprehensive income from the effective date of acquisition and up to the
effective date of disposal, as appropriate.
Where necessary, adjustments were made to the financial statements of the subsidiaries to bring
their accounting policies used in line with those used by the Company.
All intra-group transactions, balances, income and expenses are eliminated on consolidation.
- 20 -
Non-controlling interests in subsidiaries are identified separately and presented within equity. The
interest of non-controlling shareholders maybe initially measured either at fair value or at the non-
controlling interests’ proportionate share of the fair value of the acquiree’s identifiable net asset. The
choice of measurement is made on acquisition by acquisition basis. Subsequent to acquisition, the
carrying amount of non-controlling interests is the amount of those interests at initial recognition plus
non-controlling interests’ share of subsequent changes in equity. Total comprehensive income of
subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this
results in the non-controlling interests having deficit balance.
Changes in the Company and its subsidiaries interests in subsidiaries that do not result in a loss of
control are accounted for as equity transactions. The carrying amounts of the Company and its
subsidiaries’ interests and the non-controlling interests are adjusted to reflect the changes in their
relative interests in the subsidiaries. Any difference between the amount by which the non-controlling
interests are adjusted and the fair value of the consideration paid or received is recognised directly in
equity and attributed to owners of the Company.
When the Company and its subsidiaries lose control of a subsidiary, a gain or loss is recognized in
profit or loss and is calculated as the difference between (i) the aggregate of the fair value of the
consideration received and the fair value of any retained interest and (ii) the previous carrying amount
of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interest.
When assets of the subsidiary are carried at revalued amount or fair values and the related
cumulative gain or loss has been recognized in other comprehensive income and accumulated in
equity, the amounts previously recognized in other comprehensive income and accumulated in equity
are accounted for as if the Company and its subsidiaries had directly disposed of the relevant assets
(i.e. reclassified to profit or loss or transferred directly to retained earnings as specified by applicable
accounting standards). The fair value of any investment retained in the former subsidiary at the date
when control is lost is regarded as the fair value on initial recognition for subsequent accounting
under PSAK 55 (revised 2011), Financial Instruments: Recognition and Measurement or, when
applicable, the cost on initial recognition of an investment in an associate or a jointly controlled entity.
d. Business Combinations
Acquisitions of businesses are accounted for using the acquisition method. The consideration
transferred in a business combination is measured at fair value, which is calculated as the sum of the
acquisition-date fair values of the assets transferred by the Company and its subsidiaries, liabilities
incurred by the Company and its subsidiaries, to the former owners of the acquiree, and the equity
interests issued by the Company and its subsidiaries in exchange for control of the acquiree.
Acquisition-related costs are recognized in profit or loss as incurred.
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognized at
their fair value except for certain assets and liabilities that are measured in accordance with the
relevant standards.
The acquiree’s identifiable assets, liabilities and contingent liabilities that meet the conditions for
recognition under PSAK 22 (revised 2010), Business Combination, are recognized at fair value,
except for certain assets and liabilities that are measured using the relevant standards.
Non-controlling interests are measured either at fair value or at the non-controlling interests’
proportionate share of the acquire’s identifiable net assets.
When the consideration transferred by the Company and its subsidiaries in a business combination
includes assets or liabilities resulting from a contingent consideration arrangement, the contingent
consideration is measured at its acquisition-date fair value and included as part of the consideration
transferred in a business combination. Changes in the fair value of the contingent consideration that
qualify as measurement period adjustments are adjusted retrospectively, with corresponding
adjustments against goodwill. Measurement period adjustments are adjustments that arise from
additional information obtained during the measurement period (which cannot exceed one year from
the acquisition date) about facts and circumstances that existed at the acquisition date.
- 21 -
The subsequent accounting for changes in the fair value of the contingent consideration that do not
qualify as measurement period adjustments depends on how the contingent consideration is
classified. Contingent consideration that is classified as equity is not remeasured at subsequent
reporting dates and its subsequent settlement is accounted for within equity. Contingent
consideration that is classified as an asset or liability is remeasured subsequent to reporting dates in
accordance with the relevant accounting standards, as appropriate, with the corresponding gain or
loss being recognized in profit or loss or in other comprehensive income.
When a business combination is achieved in stages, the Company and its subsidiaries’ previously
held equity interest in the acquiree is remeasured to fair value at the acquisition date and the resulting
gain or loss, if any, is recognized in profit or loss. Amounts arising from interests in the acquiree prior
to the acquisition date that have previously been recognized in other comprehensive income are
reclassified to profit or loss where such treatment would be appropriate if that interests were disposed
of.
If the initial accounting for a business combination is incomplete by the end of the reporting period in
which the combination occurs, the Company and its subsidiaries report provisional amounts for the
items for which the accounting is incomplete. Those provisional amounts are adjusted during the
measurement period, or additional assets or liabilities are recognized, to reflect new information
obtained about facts and circumstances that existed as of the acquisition date that, if known, would
have affected the amount recognized as of that date.
e. Business Combination Under Common Control
Business combination of entities under common control that qualifies as a business are accounted for
under pooling of interest method where assets and liabilities acquired in the business combination are
recorded by the acquirer at their book values.
The difference between the transfer price and the book value is presented as Additional Paid-in
Capital and is not recycled to profit and loss.
The pooling of interest method is applied as if the entities had been combined from the period in
which the merging entities were placed under common control.
f. Foreign Currency Transactions and Translation
The books of accounts of the Company and its subsidiaries and associates, except for certain
subsidiaries and associates detailed below, are maintained in United States Dollar (US$).
Transactions during the period involving foreign currencies are recorded at the rates of exchange
prevailing at the time the transactions are made. At reporting dates, monetary assets and liabilities
denominated in foreign currencies are adjusted to reflect the rates of exchange prevailing at that date.
The resulting gains or losses are credited or charged to profit or loss. Non-monetary items that are
measured in terms of historical cost in a foreign currency are not retranslated.
The books of accounts of the following subsidiaries and associates are maintained in their functional
currency, which is the Indonesian Rupiah (Rp):
 PT LPG Distribusi Indonesia (LDI)

 PT Satya Mitra Gas (SMG)
 PT Wahida Arta Guna Lestari (WAGL)
 PT Cirebon Power Services (CPS)
 PT Cotrans Asia (CA)
- 22 -
For consolidation purposes, assets and liabilities of the above subsidiaries and associates at the
reporting date are translated into United States Dollar (US$) using the exchange rates at reporting
date, while revenues and expenses are translated at the average rates of exchange for the year. The
resulting translation adjustments are presented as part of other comprehensive income.
g. Transactions with Related Parties
A related party is a person or entity that is related to the Company and its subsidiaries (the reporting
entity):
a. A person or a close member of that person's family is related to a reporting entity if that person:
i. has control or joint control over the reporting entity;
ii. has significant influence over the reporting entity; or
iii. is a member of the key management personnel of the reporting entity or of a parent of the
reporting entity.
b. An entity is related to the reporting entity if any of the following conditions applies:
i. The entity, and the reporting entity are members of the same group (which means that each
parent, subsidiary and fellow subsidiary is related to the others).
ii. One entity is an associate or joint venture of the other entity (or an associate or joint venture of
a member of a group of which the other entity is a member).
iii. Both entities are joint ventures of the same third party.
iv. One entity is a joint venture of a third entity and the other entity is an associate of the third
entity.
v. The entity is a post-employment benefit plan for the benefit of employees of either the
reporting entity, or an entity related to the reporting entity. If the reporting entity is itself such a
plan, the sponsoring employers are also related to the reporting entity.
vi. The entity is controlled or jointly controlled by a person identified in (a).
vii. A person identified in (a) (i) has significant influence over the entity or is a member of the key
management personnel of the entity (or a parent of the entity).
All transactions with related parties are disclosed in the consolidated financial statements (Note 47).
h. Financial Assets
All financial assets are recognised and derecognised on trade date where the purchase or sale of a
financial asset is under a contract whose terms require delivery of the financial asset within the
timeframe established by the market concerned, and are initially measured at fair value plus
transaction costs, except for those financial assets classified as at fair value through profit or loss,
which are initially measured at fair value.
The Company and its subsidiaries’ financial assets are classified as follows:
 Fair Value Through Profit Or Loss (FVTPL)
 Available-for-Sale (AFS)
 Loans and Receivable
- 23 -
Fair Value Through Profit Or Loss (FVTPL)

Financial assets are classified as at FVTPL when the financial asset is either held for trading or it is
designated as at FVTPL.
A financial asset is classified as held for trading if:
 it has been acquired principally for the purpose of selling in the near term; or
 on initial recognition it is part of an identified portfolio of financial instruments that the entity
manages together and has a recent actual pattern of short-term profit-taking; or
 it is a derivative that is not designated and effective as a hedging instrument.

A financial asset other than a financial asset held for trading may be designated as at FVTPL upon
initial recognition if:
 such designation eliminates or significantly reduces a measurement or recognition inconsistency
that would otherwise arise; or
 a group of financial assets, financial liabilities or both is managed and its performance is
evaluated on a fair value basis, in accordance with a documented risk management or
investment strategy, and information about the Company and its subsidiaries are provided
internally on that basis to the entity’s key management personnel (as defined in PSAK 7:
Related Party Disclosures), for example the entity’s board of directors and chief executive
officer.
Financial assets at FVTPL are stated at fair value, with any resultant gain or loss recognised in profit
or loss. The net gain or loss recognised in profit or loss incorporates any dividend or interest earned
on the financial asset. Fair value is determined in the manner described in Note 45.
Available-for-sale (AFS)
Investments classified as AFS are measured at fair value.
Gains and losses arising from changes in fair value are recognised in other comprehensive income
and accumulated in equity as AFS Investment Revaluation, with the exception of impairment losses,
interest calculated using the effective interest method, and foreign exchange gains and losses on
monetary assets, which are recognised in profit or loss. Where the investment is disposed of or is
determined to be impaired, the cumulative gain or loss previously accumulated in AFS Investment
Revaluation is reclassified to profit or loss.
Investments in unlisted equity instruments that are not quoted in an active market and whose fair
value cannot be reliably measured are also classified as AFS, measured at cost less impairment.
Dividends on AFS equity instruments, if any, are recognised in profit or loss when the Company’s
right to receive the dividends are established.
Loans and receivables
Receivable from customers and other receivables that have fixed or determinable payments that are
not quoted in an active market are classified as “loans and receivables”. Loans and receivables are
measured at amortised cost using the effective interest method less impairment.
Interest is recognised by applying the effective interest rate method, except for short-term
receivables when the recognition of interest would be immaterial.
- 24 -
Effective interest method

The effective interest method is a method of calculating the amortised cost of a financial instrument
and of allocating interest income or expense over the relevant period. The effective interest rate is
the rate that exactly discounts estimated future cash receipts or payments (including all fees and
points paid or received that form an integral part of the effective interest rate, transaction costs and
other premiums or discounts) through the expected life of the financial instrument, or where
appropriate, a shorter period to the net carrying amount on initial recognition.
Income is recognized on an effective interest basis for financial instruments other than those
financial instruments at FVTPL.
Impairment of financial assets

Financial assets, other than those at FVTPL, are assessed for indicators of impairment at each
reporting date. Financial assets are impaired when there is objective evidence that, as a result of
one or more events that occurred after the initial recognition of the financial asset, the estimated
future cash flows of the investment have been affected.
For listed and unlisted equity investments classified as AFS, a significant or prolonged decline in the
fair value of the security below its cost is considered to be objective evidence of impairment.
For all other financial assets, objective evidence of impairment could include:
 significant financial difficulty of the issuer or counterparty; or
 default or delinquency in interest or principal payments; or
 it becomes probable that the borrower will enter bankruptcy or financial re-organisation.
For certain categories of financial asset, such as receivables, assets that are assessed not to be
impaired individually are, in addition, assessed for impairment on a collective basis. Objective
evidence of impairment for a portfolio of receivables could include the Company and its subsidiaries’
past experiences of collecting payments, an increase in the number of delayed payments in the
portfolio past the average credit period, as well as observable changes in national or local economic
conditions that correlate with default on receivables.
For financial assets carried at amortised cost, the amount of the impairment is the difference
between the asset’s carrying amount and the present value of estimated future cash flows,
discounted at the financial asset’s original effective interest rate.
The carrying amount of the financial asset is reduced by the impairment loss directly for all financial
assets with the exception of receivables, where the carrying amount is reduced through the use of
an allowance account. When a receivable is considered uncollectible, it is written off against the
allowance account. Subsequent recoveries of amounts previously written off are credited against the
allowance account. Changes in the carrying amount of the allowance account are recognised in
profit or loss.
When an AFS financial asset is considered to be impaired, cumulative gains or losses previously
recognised in equity are reclassified to profit or loss.
With the exception of AFS equity instruments, if, in a subsequent period, the amount of the
impairment loss decreases and the decrease can be related objectively to an event occurring after
the impairment was recognised, the previously recognised impairment loss is reversed through profit
or loss to the extent that the carrying amount of the investment at the date the impairment is
reversed does not exceed what the amortised cost would have been had the impairment not been
recognised.
- 25 -
In respect of AFS equity investments, impairment losses previously recognised in profit or loss are
not reversed through profit or loss. Any increase in fair value subsequent to an impairment loss is
recognised directly in other comprehensive income.
Derecognition of financial assets
The Company and its subsidiaries derecognise a financial asset only when the contractual rights to
the cash flows from the asset expire, or when they transfers the financial asset and substantially all
the risks and rewards of ownership of the asset to another entity. If the Company and its subsidiaries
neither transfer nor retain substantially all the risks and rewards of ownership and continues to
control the transferred asset, the Company and its subsidiaries recognise their retained interest in
the asset and an associated liability for amounts they may have to pay. If the Company and its
subsidiaries retains substantially all the risks and rewards of ownership of a transferred financial
asset, the Company and its subsidiaries continue to recognise the financial asset and also recognise
a collateralised borrowing for the proceeds received.
i. Financial Liabilities and Equity Instruments
Classification as debt or equity
Financial liabilities and equity instruments issued by the Company and its subsidiaries are classified
according to the substance of the contractual arrangements entered into and the definitions of a financial
liability and an equity instrument.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after
deducting all of its liabilities. Equity instruments issued by the Company and its subsidiaries are
recorded at the proceeds received, net of direct issue costs.
Repurchase of the Company’s own equity instruments (treasury shares) is recognized and deducted
directly in equity. No gain or loss is recognized in profit or loss on the purchase, sale, issue or
cancellation of the Company’s own equity instrument.
Financial liabilities
Financial liabilities are classified at “amortized cost”.
Financial Liabilities at Amortized Cost
Financial liabilities, which include trade and other payables, bonds, bank and other borrowings,
initially measured at fair value, net of transaction costs, and subsequently measured at amortized
cost using the effective interest method.
Derecognition of financial liabilities
The Company and its subsidiaries derecognize financial liabilities when, and only when, the Company and
its subsidiaries’ obligations are discharged, cancelled or expired.
j. Netting of Financial Assets and Financial Liabilities
The Company and its subsidiaries only offset financial assets and liabilities and present the net
amount in the statement of financial position where they:
 currently have a legal enforceable right to set off the recognized amount; and
 intend either to settle on a net basis, or to realize the asset and settle the liability simultaneously.
k. Cash and Cash Equivalents
For cash flow presentation purposes, cash and cash equivalents consist of cash on hand and in
banks and all unrestricted investments with maturities of three months or less from the date of
placement.
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l. Joint Venture
Jointly-controlled operations
TPEC, TPE and IMDE, subsidiaries, are engaged in some contracts through participation in
unincorporated joint operations. In respect of their interests in jointly controlled operations, TPEC,
TPE and IMDE recognise in their financial statements:
a. The assets that they control and the liabilities that they incur; and
b. The expenses that they incur and their share of the income that they earn from the sale of
goods or services by the joint venture.
Jointly-controlled entity
Petrosea recognizes its interest in a jointly controlled entity using the equity method of accounting.
m. Investments in Associates
An associate is an entity over which the Company and its subsidiaries are in a position to exercise
significant influence, but not control or joint control, through participation in the financial and
operating policy decisions of the investee.
The results of operations and assets and liabilities of associates are incorporated in these
consolidated financial statements using the equity method of accounting, except when the
investment is classified as held for sale, in which case, it is accounted for in accordance with PSAK
58 (Revised 2009), Non-current Assets Held for Sale and Discontinued Operations. Investments in
associates are carried in the consolidated statements of financial position at cost as adjusted by
post-acquisition changes in the Company and its subdiaries’ share of the net assets of the associate,
less any impairment in the value of the individual investments. Losses of the associates in excess of
the Company and its subsidiaries’ interest in those associates (which includes any long-term
interests that, in substance, form part of the Company and its subsidiaries’ net investment in the
associate) are recognized only to the extent that the Company and its subsidiaries have incurred
legal or constructive obligations or made payments on behalf of the associate.
Any excess of the cost of acquisition over the Company and its subsidiaries’ share of the net fair value of
identifiable assets, liabilities and contingent liabilities of the associate recognized at the date of acquisition,
is recognized as goodwill. Goodwill is included within the carrying amount of the investment and assessed
for impairment as part of that investment. Any excess of the Company and its subsidiaries’ share of the
net fair value of the identifiable assets, liabilities and contingent liabilities over the cost of acquisition, after
reassessment, are recognised immediately in profit or loss.
When the Company and its subsidiaries transact with an associate, profits and losses are eliminated
to the extent of its interest in the relevant associate.
n. Inventories
Coal inventories are recognized at the lower of cost and net realizable value. Cost, which includes an
appropriate allocation of material costs, labor costs and overhead costs related to mining activities,
is determined using the weighted average method. Net realizable value is the estimated sales price
in the ordinary course of business, less estimated costs of completion and costs necessary to make
the sale.
Spare parts and supplies, diesel fuel and fuel, lubricants and blasting materials are stated at cost or
net realizable value, whichever is lower. Cost for spare parts and supplies as well as lubricants are
determined using the weighted average method while diesel fuel and fuel are determined using the
First-in-First-out (FIFO) method. The provision for obsolete and slow moving inventories is
determined on the basis of estimated future usage of individual inventory items. Supplies of
maintenance materials are charged to cost of contracts and goods sold and operating expenses in
the period in which they are used.
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o. Prepaid Expenses
Prepaid expenses are amortized over their beneficial periods using the straight-line method.
p. Noncurrent Assets Held for Sale

Noncurrent assets are classified as held for sale if their carrying amount will be recovered principally
through a sale transaction rather than through continuing use. This condition is regarded as met
only when the sale is highly probable and the noncurrent asset is available for immediate sale in its
present condition. Management must be committed to the sale, which should be expected to qualify
for recognition as a completed sale within one year from the date of classification.
Noncurrent assets held for sale are measured at the lower of their previous carrying amount and fair
value less costs to sell.
q. Property, Plant and Equipment
Property, plant and equipment held for use in the production or supply of goods or services, or for
administrative purposes, are stated at cost, less accumulated depreciation and any accumulated
impairment losses.
Depreciation is recognized so as to write off the cost of assets less residual values using the straight-
line method based on the estimated useful lives of the assets as follows:
Years
Buildings, leasehold and improvements 5 - 20

Office furniture, fixture and other equipment 4-5
Motor vehicles and helicopter 4 - 20
Machinery and equipment 4-5
Vessels:
Speedboat 4
Landed Craft Tank (LCT) 8
Tugboat, Barge, Motor vessel and Floating crane 16
Plant, equipment, heavy equipment and vehicles 4 - 12
The estimated useful lives, residual values and depreciation method are reviewed at each year end,
with the effect of any changes in estimate accounted for on a prospective basis.
Land is stated at cost and is not depreciated.
The cost of maintenance and repairs is charged to operations as incurred. Other costs incurred
subsequently to add to, replace part of, or service an item of property, plant and equipment, are
recognized as asset if, and only if it is probable that future economic benefits associated with the
item will flow to the entity and the cost of the item can be measured reliably.
Assets held under finance leases are depreciated over their expected useful lives on the same basis
as owned assets.
When assets are retired or otherwise disposed of, their carrying amount is removed from the
accounts and any resulting gain or loss is reflected in profit or loss.
Construction in progress is stated at cost which includes borrowing costs during construction on
debts incurred to finance the construction. Construction in progress is transferred to the respective
property, plant and equipment account when completed and ready for use.
r. Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the
risks and rewards of ownership to the lessee. All other leases are classified as operating leases.
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As lessee
Assets held under finance leases are initially recognized as assets of the Company and its
subsidiaries at their fair value at the inception of the lease or, if lower, at the present value of the
minimum lease payments. The corresponding liability to the lessor is included in the consolidated
statements of financial position as a finance lease obligation.
Lease payments are apportioned between finance charges and reduction of the lease obligation so
as to achieve a constant rate of interest on the remaining balance of the liability. Contingent rentals
are recognized as expense in the periods in which they are incurred.
Operating lease payments are recognized as an expense on a straight-line basis over the lease term,
except where another systematic basis is more representative of the time pattern in which economic
benefits from the leased asset are consumed. Contingent rentals arising under operating leases are
recognized as an expense in the period in which they are incurred.
In the event that lease incentives are received to enter into operating leases, such incentives are
recognized as a liability. The aggregate benefit of incentives is recognized as a reduction of rental expense
on a straight-line basis, except where another systematic basis is more representative of the time pattern
in which economic benefits from the leased asset are consumed.
Sale and Leaseback
Assets sold under a sale and leaseback transaction are accounted for as follows:
If the sale and leaseback transaction results in a finance lease, any excess of sales proceeds over
the carrying amount of the asset is deferred and amortized over the lease term.
If the sale and leaseback transaction results in an operating lease, and it is clear that the transaction
is established at fair value, any profit or loss is recognized immediately. If the sale price is below fair
value, any profit or loss is recognized immediately except that, if the loss is compensated by future
lease payments at below market price, it shall be deferred and amortized in proportion to the lease
payments over the period for which the asset is expected to be used. If the sale price is above fair
value, the excess over fair value is deferred and amortized over the period for which the asset is
expected to be used.
For operating leases, if the fair value at the time of a sale and leaseback transaction is less than the
carrying amount of the asset, a loss equal to the amount of the difference between the carrying amount
and fair value is recognized immediately.
For finance leases, no such adjustment is necessary unless there has been an impairment in value,
in which case the carrying amount is reduced to recoverable amount.
s. Intangible Assets
Intangible assets acquired in a business combination are identified and recognized separately from
goodwill when they satisfy the definition of an intangible asset and their fair value can be measured
reliably. The cost of such intangible assets is their fair value at the acquisition date. Subsequent to
initial recognition, intangible assets acquired in a business combination are reported at cost less
accumulated amortization and accumulated impairment losses.
Intangible assets are amortized on a straight-line basis over their estimated useful lives. The
estimated useful life and amortization method are reviewed at the end of each annual reporting
period, with the effect of any changes in estimate being accounted for on a prospective basis.
Intangible assets, comprising of system mining rights, development and computer software, and
others include all direct costs related to preparation of the asset for its intended use and is amortized
over 3 - 27 years using the straight-line method.
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t. Goodwill
Goodwill arising in a business combination is recognised as an asset at the date that control is
acquired (the acquisition date). Goodwill is measured as the excess of the sum of the consideration
transferred, the amount of any non-controlling interest in the acquiree and the fair value of the
acquirer’s previously held equity interest (if any) in the entity over net of the acquisition-date amounts
of the identifiable assets acquired and the liabilities assumed.
If, after reassessment, the Company and its subsidiaries’ interest in the fair value of the acquiree’s
identifiable net assets exceeds the sum of the consideration transferred, the amount of any non-
controlling interest in the acquiree and the fair value of the acquirer’s previously held equity interest
in the acquiree (if any), the excess is recognised immediately in profit or loss as a bargain purchase
gain.
For the purpose of impairment testing, goodwill is allocated to each of the Company and the
subsidiaries’ cash-generating units expected to benefit from the synergies of the combination. A
cash-generating units to which goodwill has been allocated is tested for impairment annually, or
more frequently when there is an indication that the unit may be impaired. If the recoverable amount
of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to
reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the
unit pro-rata on the basis of the carrying amount of each asset in the unit. Any impairment loss for
goodwill is recognized directly in profit or loss in the consolidated statement of comprehensive
income. An impairment loss recognized for goodwill is not reversed in a subsequent period.
On disposal of the subsidiary, the attributable amount of goodwill is included in the determination of
the profit or loss on disposal.
u. Intangible Assets - Land rights
The legal cost of land rights upon acquisition of the land is recognized as part of the cost of land
under property, plant and equipment.
The cost of renewal or extension of legal rights on land is recognized as an intangible asset and
amortized over the period of land rights as stated in the contract or economic life of the asset,
whichever is shorter.
v. Impairment of Non-Financial Assets Except Goodwill
At the end of each reporting period, the Company and its subsidiaries review the carrying amount of
non-financial assets to determine whether there is any indication that those assets have suffered an
impairment loss or possibility to reverse the impairment that was previously recorded. If any such
indication exists, the recoverable amount of the asset is estimated in order to determine the extent of
the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an
individual asset, the Company and its subsidiaries estimate the recoverable amount of the cash
generating unit to which the asset belongs.
Estimated recoverable amount is the higher of fair value less cost to sell and value in use. If the
recoverable amount of the non-financial asset (cash generating unit) is less than its carrying amount,
the carrying amount of the asset (cash generating unit) is reduced to its recoverable amount and an
impairment loss is recognized immediately against earnings.
Accounting policy for impairment of financial assets is discussed in Note 3h; while impairment for
goodwill is discussed in Note 3t.
w. Exploration and Evaluation Assets
Exploration and evaluation activity involves the search for mineral resources, determination of the
technical feasibility and assessment of the commercial viability of the mineral resource.
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Exploration and evaluation expenditures comprise of costs that are directly attributable to:
- acquisition of rights to explore;
- topographical, geological, geochemical and geophysical studies;
- exploratory drilling;
- trenching and sampling; and
- activities involved in evaluating the technical feasibility and commercial viability of extracting
mineral resources.
Exploration and evaluation expenditures related to an area of interest is written off as incurred,
unless they are capitalised and carried forward, on an area of interest basis, provided one of the
following conditions is met:
(i) the costs are expected to be recouped through successful development and exploitation of the
area of interest or, alternatively, by its sale; or
(ii) exploration activities in the area of interest have not yet reached the stage which permits a
reasonable assessment of the existence or otherwise of economically recoverable reserves and
active and significant operations in or in relation to the area of interest are continuing.
Capitalised costs include costs directly related to exploration and evaluation activities in the relevant
area of interest. General and administrative costs are allocated to an exploration or evaluation asset
only to the extent that those costs can be related directly to operational activities in the relevant area
of interest.
Exploration and evaluation assets is recorded at cost less impairment charges. As the asset is not
available for use, it is not depreciated.
Exploration and evaluation assets are assessed for impairment if facts and circumstances indicate
that impairment may exist. Exploration and evaluation assets are also tested for impairment once
commercial reserves are found, before the assets are transferred to development properties.
x. Development Properties
Development expenditure incurred by or on behalf of the Company and its subsidiaries is

accumulated separately for each area of interest in which economically recoverable resources have
been identified. Such expenditure comprises of costs directly attributable to the construction of a
mine and the related infrastructure.
Development phase begins after the technical feasibility and commercial viability of extracting a mineral
resource are demonstrable.
Once a development decision has been taken, the carrying amount of the exploration and evaluation
assets relating to the area of interest is aggregated with the development expenditure and classified
under non-current assets as “development properties”.
A development property is reclassified as a “mining property” at the end of the commissioning phase,
when the mine is capable of operating in the manner intended by management.
No depreciation is recognised for development properties until they are reclassified as “mining
properties”.
Development properties are tested for impairment in accordance with the policy in Note 3v.
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y. Mining Properties
When further development expenditure is incurred on a mining property after the commencement of
production, the expenditure is carried forward as part of the mining property when it is probable that
additional future economic benefits associated with the expenditure will flow to the Company and its
subsidiaries. Otherwise this expenditure is classified as a cost of production.
Mining properties (including exploration, evaluation and development expenditures, and payments to
acquire mineral rights and leases) are amortized using the units-of-production method, with separate
calculations being made for each area of interest. The units-of-production basis results in an
amortization charge proportional to the depletion of the proved and probable reserves.
Mining properties are tested for impairment in accordance with the policy described in Note 3v.
z. Stripping Activity Asset
Prior to January 1, 2014, stripping costs are recognised as production costs based on the annual
planned stripping ratio. The annual planned stripping ratio is determined based on current knowledge of
the disposition of coal resources and is estimated not to be materially different from the long term planned
stripping ratio. If the actual stripping ratio exceeds the planned ratio, the excess stripping costs are
recorded in the statements of financial position as deferred stripping costs. If the actual stripping ratio is
lower than planned stripping ratio, the difference is adjusted against the amount of deferred stripping costs
carried forward from prior periods or is recognised in the statements of financial position as accrued
stripping costs. Changes in the planned stripping ratio are considered as changes in estimates and are
accounted for on a prospective basis. The beginning balance of accrued or deferred stripping costs is
amortised on a straight-line basis over the remaining mine life, or the remaining term of the mining license
(Izin Usaha Pertambangan or IUP), whichever is shorter.
aa. Provision
Provisions are recognized when the Company and its subsidiaries have a present obligation (legal or
constructive) as a result of a past event, it is probable 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
present obligation at the end of the reporting period, 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, a 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.
bb. Revenue and Expense Recognition

Contract Revenue and Cost of Contract
Revenue from construction contract is recognized using the percentage-of-completion method,

measured by percentage of work completed to date as estimated by engineers and approved by the
project owner. At reporting dates, estimated earnings in excess of billings on construction contracts
are presented as current assets, while billings in excess of estimated earnings are presented as
current liability.
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Where the outcome of a construction contract cannot be reliably estimated, contract revenue is
recognized to the extent of contract costs incurred that is probable to be recoverable. Contract costs
are recognized as expenses in the period they are incurred.
When it is probable that the total contract costs will exceed total contract revenue, the expected loss
is recognized as an expense immediately. Cost of contracts include all direct materials, labor and
other indirect costs related to the performance of the contracts.
Sale of Goods
Revenue from sales of goods is recognized when all of the following conditions are satisfied:
 The Company and its subsidiaries have transferred to the buyer the significant risks and rewards
of ownership of the goods;
 The Company and its subsidiaries retain neither continuing managerial involvement to the degree
usually associated with ownership nor effective control over the goods sold;
 The amount of revenue can be measured reliably;

 It is probable that the economic benefits associated with the transaction will flow to the Company
and its subsidiaries; and
 The cost incurred or to be incurred in respect of the transaction can be measured reliably.
Rendering of Services
When the outcome of a transaction involving the rendering of services can be estimated reliably,
revenue associated with the transaction is recognized by reference to the stage of completion of the
transaction at the end of the reporting period.
The stage of completion of a transaction may be determined by a variety of methods. An entity uses
the method that measures reliably the services performed. Depending on the nature of the
transaction, the methods may include:
a. Surveys of work performed;
b. Services performed to date as a percentage of total services to be performed; or

c. The proportion that costs incurred to date bear to the estimated total costs of the transaction.
Only costs that reflect services performed to date are included in costs incurred to date. Only
costs that reflect services performed or to be performed are included in the estimated total costs
of the transaction.
Revenue from services that have been rendered but not yet billed at reporting date are recognized
as unbilled receivable.
Interest Revenue
Interest revenue is recognized using the effective interest method.
Expenses
Expenses are recognized when incurred.
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cc. Employment Benefits
The Company and its subsidiaries provide defined post-employment benefits to their employees in
accordance with Labor Law No. 13/2003. No funding has been made to the defined benefit plans.
The cost of providing post-employment benefits is determined using the Projected Unit Credit
Method. The accumulated unrecognized actuarial gains and losses that exceed 10% of the greater
of the present value of the defined benefit obligations is recognized on the straight-line basis over the
expected average remaining working lives of the participating employees (corridor approach). Past
service cost is recognized immediately to the extent that the benefits are already vested, and otherwise is
amortized on a straight-line basis over the average period until the benefits become vested.
The benefit obligation recognized in the consolidated statements of financial position represents the
present value of the defined benefit obligation, as adjusted for unrecognized actuarial gains and
losses and unrecognized past service cost.
When the curtailment or settlement occurs, any resulting gain or loss is charged to statements of
comprehensive income.
dd. Employee and Management Stock Option Program
Employee and Management Stock Option Program (EMSOP), an equity-settled share based
payment arrangement, is measured at the fair value of the equity instrument at grant date. The fair
value determined at grant date is expensed on a straight-line basis over the vesting period, based on
management estimate of equity instruments that will eventually vest. At reporting dates,
management revises its estimate of the number of equity instruments expected to vest. The impact
of the revision of the original estimate, if any, is recognized in profit and loss over the remaining
vesting period, with a corresponding adjustment in Stock Option account under equity.
ee. Income Tax
Non-Final Tax
Current tax expense in the consolidated statements of comprehensive income is determined on the
basis of taxable income for the period computed in accordance with the prevailing tax rules and
regulations.
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to
differences between the financial statement carrying amounts of 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 and fiscal losses to the
extent that it is probable that taxable income will be available in future periods against which the
deductible temporary differences and fiscal losses can be utilized.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the
period in which the liability is settled or the asset realized, based on the tax rates (and tax laws) that
have been enacted, or substantively enacted, by the end of the reporting period.
The measurement of deferred tax assets and liabilities reflects the consequences that would follow
from the manner in which the Company and its subsidiaries expect, at the end of the reporting
period, to recover or settle the carrying amount of their assets and liabilities.
The carrying amount of deferred tax asset is reviewed at the end of each reporting period and
reduced to the extent that it is no longer probable that sufficient taxable profits will be available to
allow all or part of the asset to be recovered.
- 34 -
Deferred tax assets and liabilities are offset when there is legally enforceable right to set off current
tax assets against current tax liabilities and when they relate to income taxes levied by the same
taxation authority and the company and its subsidiaries intend to settle their current tax assets and
current tax liabilities on a net basis.
Current and deferred tax are recognized as an expense or income in profit or loss, except when they
relate to items that are recognized outside of profit or loss (whether in other comprehensive income
or directly in equity), in which case the tax is also recognized outside of profit or loss, or where they
arise from the initial accounting for a business combination. In case of a business combination the
tax effect is included in the accounting for business combination.
Final Tax
Tax expense on revenues subject to final tax is recognized proportionately based on the revenue
recognized in the period. The difference between the final tax paid and current tax expense in the
consolidated statements of comprehensive income is recognized as prepaid tax or tax payable.
Prepaid final tax is presented separately from final tax payable.
Deferred tax is not recognized for the difference between the financial statement carrying amounts of
assets and liabilities and their respective tax bases if the related revenue is subject to final tax.
ff. Derivative Financial Instruments
TPEC uses derivative financial instruments to manage its exposure to foreign exchange rate risk.
Further details on the use of derivatives are disclosed in Note 44.
Derivatives are initially recognized at fair value at the date the derivative contract is entered into and
are subsequently measured to their fair value at each reporting date.
Although entered into as economic hedge of exposure against interest rate and foreign exchange
rate risks, these derivatives are not designated and do not qualify as accounting hedge and therefore
changes in fair values are recognized immediately in earnings.
Derivatives embedded in other financial instruments or other host contracts are treated as separate
derivatives when their risks and characteristics are not closely related to those of the host contracts
and the host contracts are not measured at fair value with changes in fair value recognized in
earnings.
A derivative is presented as non-current asset or non-current liability if the remaining maturity of the
instrument is more than 12 months and is not expected to be realized or settled within 12 months.
Other derivatives are presented as current assets or current liabilities.
gg. Earnings per Share
Basic earnings per share is computed by dividing net income attributable to owners of the Company
by the weighted average number of shares outstanding during the year.
Diluted earnings per share is computed by dividing net income attributable to owners of the
Company by the weighted average number of shares outstanding as adjusted for the effects of all
dilutive potential ordinary shares.
- 35 -
hh. Segment Information

Operating segments are 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.
An operating segment is a component of an entity:
a) that engages in business activities from which it may earn revenue and incur expenses
(including revenue and expenses relating to the transaction with other components of the same
entity);
b) whose operating results are reviewed regularly by the entity’s 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 resource allocation and
assessment of their performance is more specifically focused on the category of each product, which is
similar to the business segment information reported in the prior period.
The accounting policies used in preparing segment information are the same as those used in
preparing the consolidated financial statements.
4. CRITICAL ACCOUNTING JUDGMENT AND ESTIMATES

The preparation of consolidated financial statements in conformity with Indonesian Financial Accounting
Standards requires management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated
financial statements and the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period which the estimate is revised if the revision affects only that period,
or in the period of the revision and future periods if the revision affects both current and future periods.
Critical Judgements in Applying Accounting Policies
In the process of applying the accounting principles described in Note 3, management has not made any
critical judgment that has significant impact on the amounts recognized in the consolidated financial
statements, apart from those involving estimates which are dealt with below.
Key Sources of Estimation Uncertainty
The key assumptions concerning future and other key sources of estimation at the end of the reporting
period, that have the significant risk of causing a material adjustment to the carrying amounts of assets
and liabilities within the next financial year are discussed below.
- 36 -
Impairment Loss on Loans and Receivables
The Company and its subsidiaries make allowance for impairment losses based on an assessment of the
recoverability of loans and receivables. Allowances are applied to loans and receivables where events or
changes in circumstances indicate that the balances may not be collectible. The identification of
impairment loss on loans and receivables requires the use of judgment and estimates. Where the
expectations are different from the original estimate, such difference will impact the carrying amount of
loans and receivable and the related provision for impairment losses in the year in which such estimate
has changed. The carrying amounts of loans and receivable are disclosed in Notes 7, 8, 9, 10 and 47 to
the consolidated financial statements.
Allowance for Decline in Value of Inventories
The Company and its subsidiaries make allowance for decline in value based on their estimation that
there will be no future usage of such inventories or such inventories will be slow moving in the future.
While it is believed that the assumptions used in the estimation of the allowance for decline in value
reflected in the consolidated financial statements are appropriate and reasonable, significant changes in
these assumptions may materially affect the assessment of the carrying amount of the inventories and
provision for decline in value expense, which ultimately impact the result of the Company and its
subsidiaries’ operations.
Based on the assessment, the management currently provided allowance for decline in value of
inventories of US$ 1,224,180 and US$ 4,353,991 as of December 31, 2014 and 2013, respectively. The
carrying amounts of inventories are diclosed in Note 11 to the consolidated financial statements.
Estimated Useful Lives of Property, Plant and Equipment
The useful life of each of the item of the Company and its subsidiaries’ property, plant and equipment are
estimated based on the period over which the asset is expected to be available for use. Such estimation
is based on 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 change in the estimated useful life of any item of property, plant and equipment would affect the recorded
depreciation expense and decrease in the carrying amount of property, plant and equipment.
There is no change in the estimated useful life of property, plant and equipment during the year. The
aggregate carrying amounts of property, plant and equipment is disclosed in Note 21 to the consolidated
financial statements.
Impairment of Non Financial Asset
Tangible and intangible assets, other than goodwill, are reviewed for impairment whenever impairment
indicators are present. While for goodwill, impairment testing is required to be performed at least annually
irrespective of whether or not there are indicators of impairment. Determining the value in use of assets
requires the estimation of cash flows expected to be generated from the continued use and ultimate
disposition of such assets (cash generating unit) and a suitable discount rate in order to calculate the
present value.
- 37 -
While it is believed that the assumptions used in the estimation of the value in use of assets reflected in
the consolidated financial statements are appropriate and reasonable, significant changes in these
assumptions may materially affect the assessment of recoverable values and any resulting impairment
loss could have a material adverse impact on the results of operations.
The carrying amount of non financial assets, on which impairment analysis are applied, were described in
Notes 14, 16, 17, 18, 20, 21 and 22 to the consolidated financial statements.
Employment Benefits Obligation

The determination of post-employment benefits obligation is dependent on selection of certain
assumptions used by actuaries in calculating such amounts. Those assumptions 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 Company and its subsidiaries’
employment benefit obligations.
Employment benefit obligations amounted to US$ 27,321,396 and US$ 21,860,883 as of December 31, 2014
and 2013, respectively (Note 31).
Measuring Construction Contracts in Progress Measured at Percentage-of-Completion
The determination of percentage of completion of construction contracts in progress is dependent on the

judgment and estimations of the engineers. While it is believed that the Company and its subsidiaries’
assumptions are reasonable and appropriate, significant differences in actual experience or significant
change in assumptions may materially affect the Company and its subsidiaries’ revenue recognition.
The items in the consolidated financial statements related to construction contracts are disclosed in Notes
9 and 49.
Fair value of acquired identifiable assets and liabilities from business acquisition
The fair values of acquired identifiable assets and liabilities in a business acquisition are determined by
using valuation techniques. The Company and its subsidiaries used their judgment to select a variety of
methods and make assumptions that are mainly based on market conditions existing at the acquisition
date.
To the extent that the determination of fair value of acquired identifiable assets and liabilities are made
based on different assumptions and market conditions, the carrying amount of goodwill, intangible assets
and other acquired identifiable assets and liabilities from such business acquisitions may be affected.
Valuation of financial instruments
As described in Note 45, the Company and its subsidiaries use valuation techniques that include inputs
that are not based on observable market data to estimate the fair value of certain types of financial
instruments.
Management believes that the chosen valuation techniques and assumptions used are appropriate in
determining the fair value of financial instruments.
- 38 -
5. CASH AND CASH EQUIVALENTS

2014 2013
US$ US$
Cash on hand
Rupiah 321,924 235,106
U.S. Dollar 52,624 138,740
Singapore Dollar 76 1,194
Cash in banks - Third Parties
Rupiah
PT Bank Mandiri (Persero) Tbk 6,219,751 5,336,948
The Hongkong and Shanghai Banking Corporation Limited 6,215,996 1,448,956
Citibank, N.A. 4,433,479 4,059,152
PT Bank Negara Indonesia (Persero) Tbk 823,840 2,364,213
PT Bank ANZ Indonesia 674,353 278,495
Standard Chatered Bank 586,298 5,613,434
PT Bank Artha Graha International Tbk 330,631 1,610,755
PT Bank International Indonesia 245,731 66,487
PT Bank Rakyat Indonesia (Persero) Tbk 171,996 106,365
PT Bank CIMB Niaga Tbk 118,414 170,875
PT Bank Central Asia Tbk 81,526 191,706
PT Bank KEB Indonesia 30,086 30,421
PT Bank Permata Tbk 19,941 7,202
PT Bank Victoria International Tbk 17,290 30,114
PT Bank UOB Indonesia 12,443 -
JP Morgan Chase Bank, N.A., 3,103 3,221
Bank Papua 858 321
PT Bank Pembangunan Daerah Jawa Barat dan Banten,
Bandung Branch 255 18,088
PT Bank Danamon Tbk 124 152
Bank Tabungan Negara Semarang Branch - 746
U.S. Dollar
Citibank, N.A. 65,217,525 39,732,945
The Hongkong and Shanghai Banking Corporation Limited 11,998,686 2,080,438
JP Morgan Chase Bank, N.A., 10,488,547 16,345,501
UBS AG 6,331,166 6,262,580
Bank Oversea - Chinese Banking Corporation Limited 3,271,787 1,400,138
DBS Bank Ltd. 3,163,177 2,864,011
Standard Chartered Bank, Jakarta Branch 3,106,321 10,145,165
PT Bank ANZ Indonesia 2,637,122 1,287,411
PT Bank Artha Graha International Tbk 2,267,712 2,450,475
PT Bank CIMB Niaga Tbk 1,675,914 385,558
ING Bank, N.V. 1,652,193 2,320,997
PT Bank Permata Tbk 1,353,460 3,028,735
PT Bank International Indonesia Tbk 1,098,472 1,015,062
PT Bank KEB Indonesia 1,071,231 1,071,231
PT Bank Negara Indonesia (Persero) Tbk 1,000,376 9,256,685
PT Bank Danamon Indonesia Tbk 734,835 663,260
PT Indonesia Eximbank 355,718 39,364
PT Bank UOB Indonesia 122,925 -
PT Bank Permata Syariah 106,614 208,973
PT Bank Central Asia Tbk 23,009 23,250
ANZ Singapore Ltd. - 2,900
Forward 163,104,891 200,927,271
- 39 -

2014 2013
US$ US$
Forward 163,104,891 200,927,271

Singapore Dollar
DBS Bank Ltd. 901,841 1,414,502
Bank Oversea - Chinese Banking Corporation Limited 153,022 246,470
PT Bank International Indonesia Tbk 9,077 1,248
Australian Dollar
The Hongkong and Shanghai Banking Corporation Limited 28,441 31,736
Euro
PT Bank Mandiri (Persero) Tbk 1,382,237 -
Citibank, N.A 62,774 11,296
ING Bank, N.V. 24,174 14,507
Korea Exchange Bank 15,752 4,969
The Hongkong and Shanghai Banking Corporation Limited 7,585 8,605
PT Bank International Indonesia Tbk 5,608 6,451
Call deposit - U.S. Dollar
UBS AG 42,989,379 35,685,492
Time deposits - Third Parties
Rupiah
PT BPR Bina Dana Cakrawala 1,023,189 1,493,350
PT Bank CIMB Niaga Tbk 803,858 -
PT Bank Negara Indonesia (Persero) Tbk 803,860 210,455
PT Bank Artha Graha International Tbk 80,386 1,668,253
PT Bank ANZ Indonesia 28,749 12,251
Citibank, N.A - 6,563,295
PT Bank International Indonesia Tbk - 703,826
The Hongkong and Shanghai Banking Corporation Limited - 9,185,841
ICB Bumiputera - 164,082
PT Bank Permata Tbk - 246,124
U.S. Dollar
PT Bank Mandiri (Persero) Tbk 28,507,121 -
PT Bank Artha Graha International Tbk 11,518,220 1,150,000
PT Bank Rakyat Indonesia (Persero) Tbk 9,884,548 -
UBS AG 9,837,557 16,676,412
PT Bank CIMB Niaga Tbk 7,522,993 -
PT Bank UOB Indonesia 5,000,000 -
The Hongkong and Shanghai Banking Corporation Limited - 1,500,000
Total 332,697,212 326,567,443
Interest rates per annum on time deposits

Rupiah 2.00%-11.00% 3.70% - 10.75%
U.S. Dollar 0.10% - 2.80% 0.10% - 3.00%
Interest rate on call deposit 0.12% 0.13%
- 40 -
6. OTHER FINANCIAL ASSETS

2014 2013
US$ US$
Guarantee deposit for bank loans
Time deposits - third parties
U.S. Dollar
DBS Bank Ltd. 18,190,946 20,612,357
PT Bank Permata Tbk - 80,000
Restricted cash in banks - third parties

Rupiah
PT Bank Mandiri (Persero) Tbk 369,292 -
PT Bank Negara Indonesia (Persero) Tbk 163,864 -
PT Bank Pembangunan Daerah
Jawa Barat dan Banten - 68
U.S. Dollar
PT Bank Mandiri (Persero) Tbk 32,327 -
Deposit for bank guarantee
Time deposits - third parties
U.S. Dollar
PT Bank CIMB Niaga Tbk 6,431 3,287
Held-for-trading investments at fair value

Investments in portfolio - third party
UBS AG 54,780,796 54,896,489
Total 77,068,485 79,117,030
Interest rates per annum

Time deposits
U.S. Dollar 0.07% - 2.40% 0.07% - 2.40%
Guarantee deposit for bank loans
Time deposits in DBS Bank Ltd. (DBS) were used as collateral for the short-term loans facilities granted
by DBS to IIC (Note 49). These time deposits have terms of three months.
Time deposits in PT Bank Mandiri (Persero) Tbk amounting to US$ 2,150,000 has a term of one month
and was used as collateral for credit facilities obtained by TPEC from the same bank (Notes 24 and 49).
- 41 -
Held-for-trading investments
UBS AG
Investments in portfolio (bonds and alternative investments) at UBS AG represent the investment owned by
ICRL (subsidiary):
Subsidiary 2014 2013
US$ US$
ICRL 54,780,796 54,896,489
As of December 31, 2014, unrealized loss on investment in portfolio amounted to US$ 115,692 and as of
December 31, 2013, unrealized gain on investment in portfolio amounted to US$ 674,200.
The fair value measurement of investment in portfolio is presented in Note 45.
7. TRADE ACCOUNTS RECEIVABLE

2014 2013
US$ US$
a. By debtor:
Related parties (Note 47)
PT Kideco Jaya Agung 9,806,002 10,034,581
PT Santan Batubara 1,786,667 18,940,148
PT Cotrans Asia 775,321 913,000
PT Indo Turbine 194,347 -
Others (each below
US$ 100,000) - 207,383
Total 12,562,337 30,095,112
Allowance for impairment losses (1,300,000) -
Net 11,262,337 30,095,112
- 42 -

2014 2013
US$ US$
Third parties
PT Adimitra Baratama Nusantara 22,901,960 17,734,545
ExxonMobil Cepu Ltd. 15,497,276 17,550,469
BUT Eni Muara Bakau B.V. 14,477,053 1,523,863
PT Indonesia Pratama 14,397,049 2,580,591
PT Gunung Bayan Pratama Coal 13,236,028 25,321,060
Datang International Ltd. 8,063,895 -
PT Indomining 7,859,753 9,015,732
Trammo Pte.Ltd 7,088,701 -
PT Borneo Indobara 5,999,671 2,672,047
PT Freeport Indonesia 5,972,256 3,127,363
PT Berau Coal 5,874,428 3,954,942
PT Kaltim Prima Coal 5,066,086 6,038,962
PT Adaro Indonesia 4,486,261 5,683,849
Asia Green Energy 3,972,015 -
Jhonlin Group 2,482,699 71,347
Rex Coal Pte Ltd. 1,882,086 -
Sebuku Group 1,779,213 2,299,061
PT Holcim Indonesia Tbk 1,642,545 1,310,071
PT M.I. Indonesia 1,396,562 2,348,776
BUT Chevron Indonesia Company 1,370,566 780,655
Total E&P Indonesie 1,127,448 863,209
PT Trinisyah Ersa Pratama 1,040,189 14,408
PT Halliburton Indonesia 1,000,087 857,077
BUT Conoco Phillips Indonesia 409,622 1,031,540
PT Indocement Tunggal Prakarsa Tbk 389,341 1,571,953
BUT Niko Resources Limited 198,568 1,003,941
PT Singlurus Pratama 160,700 1,362,115
BUT Pearloil Sebuku Limited 82,619 1,105,984
PT Perta-Samtan Gas 48,962 7,239,024
PT Chevron Geothermal - 2,403,683
Others (each below US$ 1 million) 10,677,319 10,142,562
Total 160,580,958 129,608,829
Allowance for impairment losses (1,438,586) (2,195,289)
Net 159,142,372 127,413,540
Total 170,404,709 157,508,652
- 43 -

2014 2013
US$ US$
b. By age category:
Current 122,819,612 116,225,232
Overdue
1 - 30 days 28,394,377 31,224,720
31 - 90 days 10,494,004 8,188,393
91 - 180 days 3,708,890 2,399,829
> 181 days 7,726,412 1,665,767
Total 173,143,295 159,703,941

Net 170,404,709 157,508,652
c. Overdue but not impaired

Overdue
1 - 30 days 28,394,377 31,224,720
31 - 90 days 10,494,004 8,188,393
91 - 180 days 3,708,890 1,870,307
> 181 days 4,987,826 -
Total 47,585,097 41,283,420
d. By currency:
U.S. Dollar 165,847,921 155,785,176
Rupiah 7,196,848 3,681,850
Singapore Dollar 98,526 236,915
Total 173,143,295 159,703,941

Net 170,404,709 157,508,652
Movement in the allowance for impairment losses

Beginning balance 2,195,289 2,192,469
Impairment losses reversed - (73,047)
Impairment losses recognized on receivables 1,699,811 75,867
Amounts written off during the year as uncollectible (1,156,514) -
Ending balance 2,738,586 2,195,289
- 44 -
Trade accounts receivables disclosed above include amounts of retention receivables from third parties which
were recorded by TPEC, TPE and Petrosea as follows:

2014 2013
US$ US$
TPEC
PT Perta - Samtan Gas 48,962 7,239,024
BUT Chevron Geothermal Salak Ltd and BUT Chevron
Geothermal Indonesia - 459,057
TPE
PT Foster Wheeler C & P - 31,323
Petrosea
PT Indonesia Pratama 842,000 205,000
Total 890,962 7,934,404
Management believes that all such retention receivables can be realized.
Trade accounts receivable of TPEC, Petrosea and MBSS, consolidated subsidiaries, with a total carrying
amount of US$ 85,683,898 and US$ 67,328,611 as of December 31, 2014 and 2013, respectively, were used
as collateral for bank loans, long-term loans and credit facilities (Notes 24, 28 and 49).
The average credit period on revenues from sales of goods and services are 60 days. No interest is charged on
trade accounts receivable.
Allowance for impairment losses on trade receivables are recognized based on estimated recoverable amounts
determined by reference to past default experience of the counterparty and an analysis of the counterparty’s
current financial position. Allowance for impairment loss at reporting date consists of individually impaired
receivables which management assessed to be no longer collectible. The Company and its subsidiaries do not
hold collateral or credit enhancement over those receivables.
Management believes that the allowance for impairment losses on trade accounts receivable from
related and third parties is adequate.
8. UNBILLED RECEIVABLES
2014 2013
US$ US$
Related parties (Note 47)
PT Kideco Jaya Agung 101,680 -
Total 227,242 -
Third parties
BUT ConocoPhillips Indonesia Inc. 1,697,932 620,896
PT Pertamina Hulu Energy ONWJ 790,174 640,100
PT Chevron Pacific Indonesia 25,640 1,113,292
Others (each below US$ 500 thousand) 16,446 817,268
Total 2,530,192 3,191,556
- 45 -
9. ESTIMATED EARNINGS IN EXCESS OF BILLINGS ON CONTRACTS AND BILLINGS IN EXCESS OF

ESTIMATED EARNINGS RECOGNIZED
TPEC has various agreements entered into with third parties for the provision of various construction
related services, as disclosed in detail in Note 49h.
Following are the details of construction costs and billed invoices related to those contracts:
2014 2013
US$ US$
Accumulated construction costs 874,220,081 1,069,677,785
Accumulated recognized profit 80,644,918 83,953,870
Accumulated recognized revenue 954,864,999 1,153,631,655
Less:
Progress billings (894,979,307) (1,111,929,501)
Net 59,885,692 41,702,154
The above consists of:
Estimated earnings in excess of billings on contracts 93,178,949 75,000,049
Billings in excess of revenues recognized (33,293,257) (33,297,895)
Net 59,885,692 41,702,154
10. OTHER ACCOUNTS RECEIVABLE

2014 2013
US$ US$
Third parties
Employee loan 3,895,769 2,026,622
PT Dire Pratama 729,248 -
PT Airfast Indonesia - 1,274,544
Others (each below US$ 500 thousand) 2,582,594 2,511,885
Total 7,207,611 5,813,051
Less current maturities 5,568,346 3,766,544

Noncurrent maturities 1,639,265 2,046,507
Other accounts receivable denominated in currencies other than the respective functional currency of the
Company and its subsidiaries are as follows:

2014 2013
US$ US$
Rupiah 3,814,306 2,574,006
- 46 -
No allowance for impairment losses was provided for other accounts receivable as management believes
that all such receivables are fully collectible.
Other accounts receivable current portion are unsecured, interest-free and collectible on demand.
11. INVENTORIES - NET

2014 2013
US$ US$
Spare parts and supplies 8,614,745 10,243,953
Diesel fuel and fuel 3,318,131 2,652,810
Coal inventories 2,628,477 8,196,606
Lubricants and blasting materials 259,110 538,459
Total 14,820,463 21,631,828
Allowance for decline in value (1,224,180) (4,353,991)
Net 13,596,283 17,277,837

Changes in the allowance for decline
in value are as follows:
Balance at beginning of year 4,353,991 3,433,967
Additions 111,074 920,024
Write-off (3,240,885) -
Balance at end of year 1,224,180 4,353,991
As of December 31, 2014 and 2013, inventories amounting to US$ 5,012,163 and US$ 4,744,813, respectively,
were insured through a consortium led by PT Asuransi Wahana Tata against all risks for
US$ 5,665,502 and US$ 9,149,823, respectively. Spareparts and supplies of MBSS as of December 31, 2014
and 2013, amounting to US$ 5,590,400 and US$ 4,155,374, respectively, were included in the vessel’s
insurance (Note 21).
Management believes that the insurance coverage is adequate to cover possible losses to inventories.
As of December 31, 2014 and 2013, the decline in the value of inventories was recognized as deduction
to the cost of inventories and charged to the current year’s profit and loss.
As of December 31, 2014 and 2013, inventories recognized in expenses and was recorded as cost of
contracts and goods sold amounted to US$ 127,576,451 and US$ 83,710,246, respectively.
- 47 -
12. PREPAID TAXES

2014 2013
US$ US$
Excess payment of corporate income tax (Note 41) -
Company
2014 131,087 -
2013 18,892 15,254
2012 74,338 79,632
Subsidiaries
2014 11,313,324 -
2013 7,487,228 7,916,074
2012 - 7,863,983
Income tax article 23 74,769 74,237
Value-added tax - net 53,044,492 33,590,552
Total 72,144,130 49,539,732
Petrosea recorded a tax overpayment for 2012 Corporate Income Tax amounting to US$ 7,863,983. On
March 10, 2014, Petrosea received Underpayment Tax Assessment Letter for Corporate Income Tax
year 2012, amounted to US$ 1,223,360 (including tax penalty amounting to US$ 282,488). Payment for
such underpayment tax assessment letter was made on April 2, 2014 and charged to adjustment
recognized in the current year in relation to the current tax of prior year (Note 41).
13. OTHER CURRENT ASSETS

2014 2013
US$ US$
Prepaid expense
Insurance 3,069,395 2,915,707
Rent 2,783,486 1,744,474
Others 2,364,284 758,417
Advances
Purchase of coal 30,523,460 10,433,471
Projects 16,152,838 20,403,113
Vessel maintenance 1,150,078 1,689,135
Others 2,481,740 2,379,939
Total 58,525,281 40,324,256
Advance purchase of coal represents advance payments made by ICI and IIC.
Advance for projects represents advance payments to subcontractors for projects by TPEC and PTRO.
- 48 -
14. INVESTMENTS IN ASSOCIATES
Carrying amount
2014 2013
US$ US$
PT Cirebon Electric Power 28,720,146 23,444,356
PT Sea Bridge Shipping 18,915,087 16,978,327
PT Cotrans Asia 8,016,281 6,291,046
PT Intan Resources Indonesia 834,746 834,746
PT Cirebon Power Services 195,653 117,899
Total 271,766,662 286,550,051
Changes in investments in associates are as follows:

2014 2013
US$ US$
Carrying amount at beginning of year 286,550,051 288,079,887

Investment additions 800,000 -
Equity in profit of associates net of amortization 77,403,963 106,530,694
Dividends (92,963,154) (113,125,906)
Liquidation of an associate - (20,544)
Share in other comprehensive (loss) income of associates (24,198) 5,085,920
Carrying amount at end of year 271,766,662 286,550,051
Other comprehensive income (loss) of associate represents unrealized loss on derivative financial
instruments of CEP (hedging reserve).
The summary of financial information in respect of the Company’s associates is set out below:

2014 2013
US$ US$
Total assets 1,499,571,402 1,745,322,354

Total liabilities 1,065,097,892 1,212,231,717
Net assets 434,473,510 533,090,637
Total revenue for the year 2,431,746,579 2,506,388,999
Net income for the year 197,546,965 292,796,255
- 49 -

IIC owns 115,159 shares, representing 46% ownership interest in PT Kideco Jaya Agung (KJA), a
company engaged in exploration, development, mining and marketing of coal, under a coal cooperation
agreement covering an area located in East Kalimantan, Indonesia. KJA is domiciled in Jakarta and
started its commercial operations in 1993. Equity in net profit of KJA includes the amortization of
intangible assets resulting from the acquisition of IIC’s interest in KJA. The amortization amounted to
US$ 6,944,988 each for the years ended December 31, 2014 and 2013.
IIC’s investment in KJA was used as collateral on a first priority basis for bonds payable (Note 30).
PT Cirebon Electric Power
In 2007, the Company through its subsidiaries, IPI and III, acquired 19.99% ownership interest in CEP.
CEP sells electricity generated by its coal-fired power to PT PLN (Persero) and started its commercial
operation on July 27, 2012. CEP plant located at Cirebon - West Java.
The Company’s indirect ownership in CEP was used as collateral to a related party’s loan facility (Note 49).
Based on unanimous written resolutions of shareholders of CEP, the shareholders of CEP approved the
increase in the authorized capital and issued and paid-up capital of CEP from
US$ 120,092,000 to US$ 124,092,000, wherein such increase will be allocated to the existing
shareholders in proportion to their shareholding. In line with the resolution, in April 2014 IPI and III paid
the capital injection at the amount of US$ 600,000 and US$ 200,000, respectively.
Based on the pledge agreements (Note 49) among CEP’s shareholders, CEP and the Security Agent
under the Financing Agreements of CEP, each of shareholders is required to pledge all of the newly
issued shares in favor of the Security Agent.
PT Sea Bridge Shipping
In October 2008, TPEC established PT Sea Bridge Shipping (SBS), a company engaged in domestic
goods shipment. TPEC has 46% ownership interest. SBS is domiciled in Jakarta and started its
commercial operations in 2008.
PT Cotrans Asia
In June 2007, TPEC acquired 1,800 shares or 45% ownership in PT Cotrans Asia, a company engaged in
coal transportation and transshipment service. PT Cotrans Asia is domiciled in East Kalimantan and
started its commercial operations in 2004.
PT Intan Resource Indonesia

IIC owns 866 shares, representing 43.3% of ownership interest in PT Intan Resource Indonesia (IRI), a
company engaged in coal trading and mining consultancy. IRI is domiciled in Jakarta and still under
development stage.
PT Cirebon Power Services
In February 2010, the Company through its subsidiaries, IPI and III acquired 19.99% of ownership interest
in PT Cirebon Power Services (CPS). CPS is engaged in the operation and maintenance of electrical
equipment and facilities and started its commercial operations on July 27, 2012. CPS is domiciled in
Cirebon - West Java.
The Company’s indirect ownership in CPS was used as collateral to a related party’s loan facility
(Note 49).
- 50 -
15. CLAIM FOR TAX REFUND

2014 2013
US$ US$
Company 2011 fiscal year 2,111,373 2,334,204

Company 2008 fiscal year 3,725,799 -
IIC 2011 fiscal year 665,265 678,964
IIC 2010 fiscal year 792,195 1,555,350
IIC 2006 fiscal year 497,904 2,105,352
Petrosea 2011 fiscal year - 4,153,712
Petrosea 2005, 2006 and 2007 fiscal years 1,300,661 1,300,661
KPI 2007, 2008 and 2009 fiscal years 777,266 1,375,278
Total 9,870,463 13,503,521
Tax Assessment Letters
Company
Below are the tax assessment letters that are still in the process of appeal:
Total claimed
Overpayment or Total approved December 31, December 31,
Tax type Tax period Underpayment Total claimed by DGT 2014 2013 Current status
Rp Rp US$ US$
Value Added Tax (VAT) January-November 2011 Underpayment 26,266 million Nil 2,111,373 2,334,204 Filed appeal
Corporate Income Tax 2008 Underpayment 46,348 million Nil 3,725,799 - Filed appeal
Sub total 5,837,172 2,334,204
Tax Assessment Letters on the Company’s VAT pertaining to the period from January - November 2011
are inclusive of interest and penalty.
In January 2013, Directorate General of Taxation (DGT) issued Tax Assessment Letters on the Company’s
Value-added Tax (VAT) pertaining to the month of December 2011. Based on such assessment letters, the
Company’s tax overpayment amounted to Rp 12,943 million, compared to Rp 13,898 million recorded and
being claimed by the Company. The difference between amount claimed and approved by DGT is still in
appeal.
Management believes that this tax matter will be resolved in favor of the Company and accordingly, no
provision was made as of reporting date.
Under the assessment letters dated December 31, 2013 on the Company's tax obligation for fiscal year
2007 and 2008, DGT made revisions on the Company's taxable income (fiscal loss) as follows:
Per DGT Per Company
Rp Rp
Fiscal Loss - 2007 14,460,820,295 78,088,647,620
Taxable income - year 2008 net off with accumulated fiscal losses
for the year 2004 - 2007 amounting to Rp 71,093,371,476 104,447,847,428 14,147,668,014
- 51 -
Below are tax assessment letters that had been resolved:

Overpayment or Total approved by
Tax type Tax period Underpayment Total claimed Tax Court or DGT Current status Remarks
Rp Rp
VAT on offshore services 2011 Underpayment 2,186 million 2,101 million Resolved Total approved by DGT was recorded
as expense in 2014
Corporate Income Tax 2007 Underpayment Nil Nil Resolved -
Below are tax assessment letters that are not yet claimed:
Overpayment or
Tax type Tax period Underpayment Total claimed Current status
Rp
Income Tax article 26 December 2009 Underpayment 9,830 million Not yet claimed
Corporate Income Tax 2009 Underpayment 1,672 million Not yet claimed
The Company settled underpayment in January 2015 and filed an objection.

The Company filed an objection letter against such assessment letters and believes that this tax matter
will be resolved in favor of the Company.
Under tax assessment letters dated December 29, 2014 on the Company's tax obligation for fiscal year
2009, DGT made revisions on the Company's taxable income (fiscal loss) as follows:
Per DGT Per Company
Rp Rp
Taxable income (fiscal loss) - 2009 4,034,702,516 (403,190,600,032)
IIC
Below are tax assessment letters/tax collection letters that are in the process of appeal:
Total claimed
Overpayment or Total approved by December 31, December 31,
Tax type Fiscal year Underpayment Total claimed Tax Court or DGT 2014 2013 Current status
Rp Rp US$ US$
Corporate Income Tax 2006 Underpayment 25,638 million 6,169 million 497,904 2,105,352 IIC filed Letter of
Judicial Review
Income Tax art. 26 June 2011 Underpayment 8,276 million 8,276 million 665,265 678,964
Income Tax art. 26 December 2010 Underpayment 9,855 million 9,855 million 792,195 808,508 Filed appeal
Income Tax art. 26 June 2010 Underpayment 9,103 million Nil - 746,842 Received by IIC
Total 1,955,364 4,339,666
In June 2011, DGT issued a revised tax assessment letter on corporate income tax fiscal year 2006,
reducing the underpayment from Rp 57,850 million into Rp 25,638 million. A refund of Rp 32,212 million
was received by IIC in July 2011. At the same time, IIC is also claiming interest income on the revised tax
amount of Rp 3,865 million.
- 52 -
In June 2012, Tax Court has resolved the interest income claim in favor of IIC, however until the issuance
date of the consolidated financial statement, IIC has not yet received such interest payment.
While on the remaining amount of Rp 25,638 million, DGT has rejected the objection. As a response, IIC
filed an appeal. The Tax Court granted IIC’s appeal, but the calculation in Tax Decision Letter stated that
IIC’s income tax underpayment amounted to Rp 6,169 million. Based on the above matter, IIC filed a
Reconsideration Request, while claim for tax refund amounted to Rp 19,469 million was refunded by DGT
to IIC in May 2014. IIC also claimed for interest on the remaining claim for tax refund.
In December 2011, DGT issued TCL on IIC’s tax obligation for income tax article 26 for the December
2010 and June 2011 fiscal periods amounting to Rp 9,855 million and Rp 8,276 million, respectively. On
the same date, IIC paid such tax obligations and recorded the amount as part of claim for tax refund. IIC
then filed a request letter for reduction or cancellation of TCL from DGT, which was then objected by
DGT. IIC filed an appeal against the TCL to Tax Court.
The appeals process are still ongoing however management believes that this tax matter will be resolved
in favor of IIC and accordingly, no provision was made as of reporting date.
On August 25, 2014, Tax Court has granted IIC’s request letter for reduction or cancellation of Tax
Collection Letters on its income tax article 26 for June 2010 fiscal period to become nil. At December 8,
2014, the amount previously assessed and paid by IIC of Rp 9,103 million was already refunded.
PT Petrosea Tbk
Below are tax assessment letters that are in the process of appeal in 2013, then resolved in 2014:
Total claimed
Overpayment or Total approved December 31, December 31,
Tax type Fiscal year Underpayment Total claimed by DGT 2014 2013 Current status
Rp Rp US$ US$
Value Added Tax (VAT) October-December 2011 Overpayment 39,494 million 38,574 million - 4,153,712 Resolved
In 2013, Petrosea has filed a claim for the overpayment of Value Added Tax for the months of
September, October, November and December year 2011 amounting to Rp 87,338 million.
Petrosea has received the refund for overpayment of Value Added Tax September 2011 on June 20,
2013 amounted to Rp 47,838 million.
Petrosea has received the refund for overpayment of Value Added Tax October – December 2011 on
March 10, 2014. The refund of this overpayment amounted to Rp 38,574 million, after deducting with tax
penalty.
The difference between the amount claimed and the amount in the Tax Assessment Letter was recorded
as expense in the 2014 and 2013 consolidated statements of comprehensive income.
- 53 -
Tax Assessment Letters for Joint Operations
Joint Petrosea's portion

operations Tax type Fiscal year Tax underpayment Tax underpayment Equivalent to
Rp Rp US$
PC JO Income Tax art. 26 2005 12,505,239,916 6,252,619,958 540,323
Total 15,051,251,335 1,300,661
In 2013, Petrosea-Clough Joint Operation (PC JO) had paid the underpayment of income tax article 26 for
the years 2005 - 2007 and filed the objection letter on the Tax Assessment Letters on the income tax
article 26 above.
On January 15, 2015, PC JO received Decision Letter on objection on underpayment of income tax article
26 for the years 2005 – 2007. Stating the rejection of the PC JO’s objection and increased the tax
underpayment amounting to Rp 3,831,014,098.
On February 2, 2015, Petrosea received Underpayment Tax Assesment Letter for Value Added Tax year
2010, amounting to Rp 1,448,644,006. Payment for such underpayment tax assessment letter was made
on February 24, 2015.
PT Kuala Pelabuhan Indonesia (KPI)
Below are underpayment tax assessment letters that are in process of appeal:
Total claimed
Tax type Fiscal year Total claimed Total approved by DGT 2014 2013 Current status
US$ Rp US$ Rp US$ US$
Corporate Income Tax 2009 113,104 - - - 113,104 113,104 In process of filed appeal
2008 86,345 - - - 86,345 86,345
Corporate Income Tax 2007 499,303 - 33,064 - - 499,303 Resolved
Income Tax art.26 2007 - 867,364,072 - 452,537,786 - 90,823 Resolved
Corporate Income Tax 2008 436,488 - - - 436,488 436,488 Filed appeal
Income Tax art.23 2009 - 141,519,308 - - 15,581 15,581 Filed appeal
Income Tax art.26 2008 - 71,616,440 - 71,616,440 - 7,885 Resolved
Income Tax art.25 2007 30,135 - - - 30,135 30,135 Filed appeal
Income Tax art. 21 2008 - 787,860,654 - - 83,239 83,239 Filed appeals
Value Added Tax 2009 - 116,807,523 - - 12,374 12,374 Filed appeal
Total 777,266 1,375,277
As of the issuance date of the financial statement, KPI has not yet received any response from tax court
and no decision has been made regarding the appeal.
- 54 -
On October 6, 2014, DGT has granted KPI’s partially appeal on corporate income tax for 2007 fiscal year
to become underpayment amounted to US$ 33,064. On November 20, 2014, the difference between the
amount previously paid by KPI and the amount that approved by DGT amounted to US$ 466,239 was
already refunded and amounted to US$ 33,064 was charged to profit loss in 2014.
On September 15, 2014, DGT has granted KPI’s partially appeal on income tax article 26 for 2007 fiscal
year to become underpayment amounted to Rp 452,537,786. On October 27, 2014, the difference
between the amount previously paid by KPI and the amount that approved by DGT amounted to
Rp 414,826,286 was already refunded and amounted to Rp 452,537,786 was charged to profit loss in
2014.
On July 13, 2014, DGT has fully rejected KPI’s appeal on income tax article 26 for 2008 fiscal year and
amounted to Rp 71,616,440 was charged to profit loss in 2014.
16. EXPLORATION AND EVALUATION ASSETS
December 31, 2014

Beginning balance Addition Ending balance
US$ US$ US$
Baliem 16,144,171 733,475 16,877,646

MEA 4,240,412 77,456 4,317,868
Kananai and Malintut 4,552,110 1,213,298 5,765,408
Total 24,936,693 2,024,229 26,960,922
December 31, 2013

Beginning balance Addition Write-off Ending balance
US$ US$ US$ US$
Baliem 10,492,059 5,652,112 - 16,144,171

MEA 2,912,311 1,328,101 - 4,240,412
Kananai and Malintut 1,917,271 2,634,839 - 4,552,110
Southwest Bird’s Head - 4,608,760 (4,608,760) -
Total 15,321,641 14,223,812 (4,608,760) 24,936,693
As at December 31, 2013, management of PT Indika Multi Daya Energi (IMDE), has internally reviewed
the current existing progress of exploration done in relation to its participation interest in Block Southwest
Bird’s Head Production Sharing Contract (PSC). The review indicated that the carrying amount of the
respective exploration and evaluation asset is unlikely to be recovered from the successful development.
At this stage, management of IMDE decided to decrease the economic value of the respective assets,
while simultaneously waiting for the final results on the series of ongoing analysis and studies performed
by the operator to determine the continuity of the block (Note 40).
17. MINING PROPERTIES
This account represents costs transferred from exploration and evaluation assets related to an area of
interest, technical feasibility and commercial viability of which are demonstrable, and subsequent costs to
develop the mine to the production phase.
- 55 -
January 1, December 31,

2014 Additions 2014
US$ US$ US$
Cost 16,477,488 3,160,028 19,637,516

Accumulated amortization (3,220,267) (1,960,402) (5,180,669)
Net carrying amount 13,257,221 14,456,847
January 1, December 31,

2013 Additions 2013
US$ US$ US$
Cost 9,623,322 6,854,166 16,477,488
Accumulated amortization (2,160,929) (1,059,338) (3,220,267)
Net carrying amount 7,462,393 13,257,221
18. INVESTMENTS IN JOINTLY-CONTROLLED ENTITIES
Percentage of December 31, December 31,

Domicile Ownership 2014 2013
% US$ US$
PT Santan Batubara (SB) Kalimantan 50
Equity in net loss (3,997,264) (4,292,355)
Ending balance 14,487,529 18,484,793
PT Tirta Kencana Tangerang 47
Cahaya Mandiri (TKCM)
Equity in net income 76,057 273,127
Dividends received - (407,062)
Book value 2,693,658 2,617,601

Sale of investment (2,693,658) -
Ending balance - 2,617,601
Total 14,487,529 21,102,394
In 1998, Petrosea purchased a 50% interest in SB, a company domiciled in Jakarta with project location
in Kalimantan, and is engaged in exploring, mining, treating and selling coal, at a cost of US$ 100
thousand. In 2009, SB started its commercial operations.
Since 2004, Petrosea held a 47% interest in TKCM, a company engaged in the water treatment business.
On March 24, 2014, Petrosea has signed the deed of sale and purchase agreement to transfer all of its
shares in TKCM to PT Tanah Alam Makmur, with value of Rp 21,870 million (equivalent to
US$ 2,693 thousand). The proceeds from the sale, which consists of advances received in 2012
amounting to US$ 25 thousand and 2013 amounting to Rp 2.5 billions and cash payment in 2014
amounting to Rp 19.1 billion (equivalent to US$ 1,644 thousand), shall be used to finance Petrosea’s
working capital requirements. Loss recognized from divestment of TKCM shares amounted to Rp 1,184
million (equivalent to US$ 102 thousand).
- 56 -
The summary of financial information in respect of the jointly-controlled entities is set out below:

2014 2013
US$ US$
Total assets 28,695,001 69,441,959

Total liabilities 9,790,025 38,678,792
Net assets 18,904,976 30,763,167
Total revenue for the year 32,320,713 144,610,309
Net loss for the year (7,832,462) (8,003,588)
19. JOINT OPERATIONS
Method of
Joint Venturers sharing result Participating interest Duration
Percentage
Total E&P Indonesie West Papua Profit sharing 10% On-going
PT Saipem Indonesia and PT Chiyoda Profit sharing 38% On-going

International Indonesia
Chiyoda Corporation, PT Chiyoda International Profit sharing 30% On-going

Indonesia, PT Saipem Indonesia and
PT Suluh Ardhi Engineering
Total E&P Indonesie West Papua
On February 20, 2013, PT Indika Multi Daya Energi (IMDE), a subsidiary, signed Farmout Agreement
with TOTAL E&P Indonesie West Papua (TOTAL), a subsidiary of TOTAL SA, to acquire a 10%
participating interest in the Southwest Bird’s Head Production Sharing Contract (PSC), while TOTAL as
operator will hold the remaining 90% interest.
The exploration block of South West Bird’s Head PSC is located in the on-offshore Salawati Basin of the
Province of West Papua, covering an area 7,176 square-km.
Given that the conditions precedent in the Farmout Agreement had been fulfilled and the approval from
the Government of the Republic of Indonesia had been obtained as represented by the ministry who had
the authority in the oil and gas sector, TOTAL transferred the 10% participating interest of Southwest
Bird’s Head PSC to IMDE by signing the Deed of Assignment on May 27, 2013.
PT Saipem Indonesia and PT Chiyoda International Indonesia
In 2013, TPEC entered an unincorporated joint venture agreement with PT Saipem Indonesia and
PT Chiyoda International Indonesia known as the STC Joint Operation (STC JO) in which joint control is
exercised. TPEC’s share is 38%.
STC JO formed a consortium with Hyundai Heavy Industries Co Ltd (HHI), on the purpose of submitting a
bid to do provision and installation of New Built Barge Floating Production Unit (Hull, Topside and
Mooring System) for Jangkrik and Jangkrik North East (known as ENI Jangkrik Project) that will be held
by ENI Muara Bakau B.V. (ENI).
- 57 -
In December 2013, ENI has issued a letter awarding the consortium of STC JO and HHI for the ENI
Jangkrik project, and a letter to start the early works of the project. The contract was signed on
February 28, 2014, at the amount of US$ 1,114 million.
In executing the project, the STC JO has an agreement that each member will contribute personnel and
other resources, and certain portion of the project will be entrusted to certain members (“Own Portion”).
The Own Portion of TPEC is to procure Gas Turbine Generators package, and to procure Fabricated
Equipment, in ths case being Vessels, Columns, and Shell & Tube Heat Exchangers
Chiyoda Corporation, PT Chiyoda International Indonesia, PT Saipem Indonesia and PT Suluh Ardhi
Engineering
On October 27, 2014, TPEC and TPE entered an unincorporated joint venture agreement with Chiyoda
Corporation, PT Chiyoda International Indonesia, PT Saipem Indonesia and PT Suluh Ardhi Engineering
known as the CSTS Joint Operation (“CSTS JO”) in which joint control is exercised.
TPEC and TPE’s portion in CSTS JO altogether is 30%.
On October 29, 2014, BP Berau Ltd and CSTS JO signed the contract for FEED of Tangguh LNG
Expansion Project, effective on December 5, 2014, to deliver Front End Engineering Design, plans and
estimates for EPC contract, and submitting the tender for EPC contract of Tangguh LNG Expansion
Project. The contract is scheduled for 12 months plus 6 weeks to submit the commercial EPC tender.
The project kicked-off by December 5, 2014 but the members of CSTS JO agreed that the bookkeeping
at CSTS JO level will commence in January 2015, incorporating the activities from December 5, 2014 in
terms of assets, liabilities, revenues and costs of CSTS JO. TPEC and TPE will take its respective portion
of the financials of CSTS JO.
Each participant in the above joint operations shall share the rights, benefits, liabilities, risk, expenses, net
profit or net loss in proportion to their respective participating interest, subject to any subsequent changes
in the share of profit made pursuant to the joint operation agreements.
The following amounts are included in consolidated financial statements using proportionate
consolidation:
Carrying amount
2014 2013
US$ US$
Total asset 39,945,879 6,469,799
Total liabilities 35,510,612 1,760,061
Income 48,086,441 1,005,903
Expenses 34,234,278 1,108,122
- 58 -
20. ADVANCES AND OTHER NONCURRENT ASSETS
Carrying amount
2014 2013
US$ US$
Investment in shares of stock
Third party
PT Sarana Riau Ventura 1,211 1,211
Advances for investments
Third parties
PT Karya Sukses Unggulan 5,000,000 -
PT Intan Cempaka Perkasa 3,665,362 3,664,534
Others 1,166,541 2,024,221
Total 9,833,114 5,689,966
PT Karya Sukses Unggulan
In August 2014, IIC entered into Exploration and Development of Coal Concession Area Agreements with
PT Karya Sukses Unggulan (KSU), in which KSU agreed to act on behalf of and for the benefit of IIC to
explore, find and/or develop coal concession areas, including infrastructure related to coal concession in
Indonesia, either as Mining Right (IUP) or Coal Contract of Work (CCoW). Based on the agreement, IIC
agreed to provide funding for the exploration, development and/or construction of coal concession
activities at the amount of US$ 5,000,000.
The agreement is valid for one year, effective from the signing date of the above agreement. IIC has the
right to terminate the agreement at any time and for any reasons by giving a 7 days advance notice to
KSU before the effective termination. If until the termination date of the agreement, KSU still cannot fulfill
its obligation under the agreement or the agreement was early terminated by IIC, then KSU should refund
the advance to IIC, net of all expenses paid-out by KSU related to its obligation under the agreement,
within certain period as specified in the agreements.
PT Intan Cempaka Perkasa
IIC entered into Exploration and Development of Coal Concession Area Agreements with PT Intan
Cempaka Perkasa (ICP) dated August 5 and 11, 2008, in which ICP agreed to act on behalf of and for the
benefit of IIC to explore, find and/or develop coal concession areas in Indonesia, either as IUP or CCoW.
Based on the agreements, IIC agreed to provide funding for the exploration or development of coal
concession activities up to the maximum amount of Rp 91,209 million and Rp 137,650 million, respectively, in
which Rp 228,761 million (equivalent to US$ 24,981,225) was paid in advance by IIC.
The agreements are valid for one year, effective from the signing date of each of the above agreements.
IIC has the right to terminate the agreement at any time and for any reasons by giving a 7 days advance
notice to ICP before the effective termination. If until the termination date of each agreement, ICP still
cannot fulfill its obligation under these agreements or the agreements were early terminated by IIC, then
ICP should refund the advance to IIC, net of all expenses paid-out by ICP related to its obligation under
the agreements, within certain period as specified in the agreements. In accordance with the agreements,
ICP agreed to give its 75 shares currently owned by PT Citra Bayu Permata as well as the other assets
owned by ICP, including its mining concession rights, as collaterals to ICP.
- 59 -
Following the expiration of the agreements with ICP, the agreements have been amended several times,
among others, through agreement dated August 5, 2010, where IIC and ICP agreed to amend certain articles in
the previous agreements, among others, as follows:
 To extend the agreement until August 5, 2014; and

 To refund to IIC the advance of Rp 29,058 million in February 2013 and advance of Rp 44,703 million
in August 2014.
The agreement was last amended on July 30, 2014, wherein ICP proposed to extend the agreement for
another one year up to August 5, 2015. Settlement of the outstanding advance, net of all the expenses
paid-out by ICP related to its obligation under the agreements, will be done at the end of the agreements.
During the period of the agreement up to December 31, 2014, IIC received several times refunds of
advances totaling Rp 184 billion.
21. PROPERTY, PLANT AND EQUIPMENT

Transfer to assets
January 1, Translation held for sale December 31,
2014 Additions Deductions adjustments Reclassifications (Note 53) 2014
US$ US$ US$ US$ US$ US$ US$
At cost:
Direct acquisitions
Land 39,397,831 48,730 (48,872) (109,552) - (534,802) 38,753,335
Buildings, leasehold
and improvements 98,718,809 - (575,815) 3,582 3,253,287 (683,169) 100,716,694
Office furniture, fixture and
other equipment 29,598,834 408,277 (201,201) 3,097 1,165,953 (11,730) 30,963,229
Vessels 352,464,859 3,100,392 (591,407) - 1,061,718 - 356,035,562
Motor vehicles and helicopter 15,324,812 888,901 (661,933) (4,058) - (330,152) 15,217,570
Machinery and equipment 7,225,956 2,631 (874,178) (29,315) - (892,889) 5,432,206
Plant, equipment, heavy
equipment and vehicles 163,276,924 - (12,029,440) - 19,931,272 (168,983) 171,009,773
Construction in-progress 16,764,713 48,849,397 - - (25,412,230) - 40,201,880
Leased assets
equipment and vehicles 302,987,695 - (12,250,290) - 18,367,124 - 309,104,529
Construction in-progress 1,926,837 16,654,135 - - (18,367,124) - 213,848
Total 1,027,687,270 69,952,463 (27,233,136) (136,246) - (2,621,726) 1,067,648,625
Accumulated depreciation:
Direct acquisitions
and improvements 35,180,423 7,856,212 (187,140) (4,531) 729,916 (159,517) 43,415,363
other equipment 19,357,589 4,674,916 (77,610) (3,797) (720,076) (11,730) 23,219,292
Vessels 84,417,683 23,845,235 (469,448) - - - 107,793,470
Motor vehicles and helicopter 7,733,416 1,942,630 (1,392,791) (6,907) - (225,615) 8,050,733
Machinery and equipment 1,502,882 857,152 - (10,923) - (374,065) 1,975,046
equipment and vehicles 64,550,938 22,621,149 (11,223,556) - (9,840) (135,617) 75,803,074
Leased assets
equipment and vehicles 119,259,743 39,966,810 (12,250,290) - - - 146,976,263
Total 332,002,674 101,764,104 (25,600,835) (26,158) - (906,544) 407,233,241
Net Book Value 695,684,596 (1,715,182) 660,415,384
- 60 -
Transfer from Transfer to Transfer to

January 1, Translation investment intangible assets December 31,
2013 Additions Deductions adjustments Reclassifications property assets held for sale 2013
US$ US$ US$ US$ US$ US$ US$ US$ US$
At cost:
Direct acquisitions
Land 18,022,986 1,074,626 - (167,968) 20,468,187 - - - 39,397,831
and improvements 114,601,083 1,816,234 - (176,391) (19,132,242) 1,610,125 - - 98,718,809
other equipment 29,075,174 1,069,482 1,544,970 (1,372) 1,957,571 - (957,051) - 29,598,834
Vessels 344,764,679 4,649,072 - - 3,776,108 - - (725,000) 352,464,859
Motor vehicles
and helicopter 15,453,038 1,136,527 1,177,768 (86,985) - - - - 15,324,812
Machinery and equipment 6,426,140 830,745 - (239,858) 208,929 - - - 7,225,956
equipment and vehicles 174,894,959 2,169,175 24,378,553 - 10,783,967 - - (192,624) 163,276,924
Construction in-progress 12,745,750 25,641,361 251,770 - (20,506,628) - (864,000) - 16,764,713
Leased assets
equipment and vehicles 299,849,327 8,369,987 18,438,808 - 13,207,189 - - - 302,987,695
Construction in-progress 736,000 11,953,918 - - (10,763,081) - - - 1,926,837
Total 1,016,569,136 58,711,127 45,791,869 (672,574) - 1,610,125 (1,821,051) (917,624) 1,027,687,270
Accumulated depreciation:
Direct acquisitions
and improvements 26,039,805 8,464,954 - (27,752) - 703,416 - - 35,180,423
other equipment 16,167,649 5,269,550 1,300,782 (3,423) (61,749) - (713,656) - 19,357,589
Vessels 61,169,298 23,418,307 - - - - - (169,922) 84,417,683
Motor vehicles
and helicopter 5,667,297 3,159,655 1,050,467 (43,069) - - - - 7,733,416
Machinery and equipment 1,252,081 319,438 - - (68,637) - - - 1,502,882
equipment and vehicles 58,379,107 19,354,707 13,096,769 (68,184) 130,386 - - (148,309) 64,550,938
Leased assets
equipment and vehicles 95,233,358 37,556,277 13,529,892 - - - - - 119,259,743
Total 263,908,595 97,542,888 28,977,910 (142,428) - 703,416 (713,656) (318,231) 332,002,674
Net Book Value 752,660,541 695,684,596
Depreciation expense was allocated to the following:

2014 2013
US$ US$
Cost of contracts and goods sold (Note 36) 90,591,953 85,367,417

General and administrative expenses (Note 37) 11,172,151 12,175,471
Total 101,764,104 97,542,888
- 61 -
Details of the gain (loss) on sale of property, plant and equipment are as follows:

2014 2013
US$ US$
Net carrying amounts:
Property, plant and equipment 1,632,301 8,731,900
Sale and leaseback assets - 8,082,059
Less:
Proceeds from disposal of:
Property, plant and equipment 2,499,963 2,372,746
Sale and leaseback assets - 8,082,059
Gain (loss) on disposal of property, plant and equipment and
noncurrent assets held for sale (Note 40) 867,662 (6,359,154)
Details of constructions in-progress as of December 31, 2014, are as follows:
31 December 31, 2014

Percentage of Accumulated Estimated Year of
Completion Costs Completion
US$
Buildings, leasehold and improvements 18 - 95% 26,590,403 2015

Office furniture and fixtures 70 - 80% 736,794 2015
Vessels 80 - 90% 6,119,539 2015
Machine and equipment 615,544 2015
Plant, equipment, heavy equipment and vehicles 58 - 70% 6,353,448 2015
Total 40,415,728
Management does not foresee any events that may prevent the completion of the constructions in-
progress.
MBSS intended to sell its property, plant and equipment with carrying amount of
US$ 632,759 and US$ 599,393 as of December 31, 2014 and 2013, respectively. These assets are
reclassified to asset held for sale and with impaired loss of US$ 550,872 and US$ 435,626 booked in the
2014 and 2013 consolidated statements of comprehensive income, respectively.
The Company owns several pieces of land located in Bintaro, South Tangerang measuring 11,117
square meters with Building Use Rights (HGB) for a period of 25 years until 2035.
Petrosea owns several pieces of land located in West Nusa Tenggara, Kabupaten Paser East Kalimantan and
Timika measuring 151,677 square meters with HGB for a period of 20 and 30 years, respectively, until 2028,
2029 and 2030.
- 62 -
TPEC owns several pieces of land located in Jakarta with HGB for 20 years until 2029.
TPE owns several pieces of land located in Banyuraden Village, Subdistrict of Gamping, Disctrict of
Sleman, Yogyakarta with HGB until 2044.
Management believes that there will be no difficulty in the extension of the land rights since all the land
were acquired legally and supported by sufficient evidence of ownership.
Property, plant and equipment used as collateral
Petrosea
As of December 31, 2014, certain heavy equipment of Petrosea with a carrying amount of US$ 6,365
thousand and several pieces of land at Timika and Sumbawa with carrying amount of US$ 387 thousand
are used as collateral for bank facilities obtained from PT. Bank ANZ Indonesia (Note 24). Based on the
Credit Facility Agreement with PT. Bank ANZ Indonesia, the piece of land were valued at an aggregate
amount of Rp 20 billion as of the date of the agreement.
In 2013, Petrosea entered into sale and leaseback agreements for its heavy equipment with a financing
company for a period of 4–5 years.
After an evaluation of the terms and substance of the sale and leaseback arrangement during the period,
Petrosea’s management has determined that all the risks and rewards incidental to ownership of the
heavy equipment still rest with the seller-lessee and classified the transactions as finance lease.
Leased assets are used as collateral for the lease liabilities (Note 29).
MBSS
On December 31, 2014, MBSS’s vessels with carrying amount of US$ 124,934,237 are pledged as
collateral for bank loans and long-term bank loans (Notes 24 and 28).
Included in property, plant and equipment of MBSS is vessel FC Princesse Rachel and FC Vittoria
th
wherein PT Kideco Jaya Agung, a related party, has an option to purchase such asset at the 60 month
or at the end of the contract period (Note 49).
TPEC
TS a subsidiary of TPEC, owns the office unit under strata title, which has legal term of 99 years until
February 2088. This property is used to secure banking facilities granted by DBS Bank Ltd., Singapore
Branch (Note 28).
The HGB No. 1545 and 1576 are used as collateral for credit facilities obtained by TPEC from PT Bank
Mandiri (Persero) Tbk (Notes 24 and 49).
- 63 -
Property, plant and equipment, except land, are insured with various insurance companies against fire,
theft and other possible risk to various insurance companies, as follows:
Sum insured
Insurance company Currency December 31, 2014
PT Asuransi AXA Indonesia Rp 27,525,000,700

PT Zurich Insurance Indonesia Rp 26,948,302,000
Asuransi Astra Buana Rp 5,170,000,000
PT Asuransi Cakrawala Proteksi Rp 3,857,200,000
PT Asuransi Raksa Pratikara Rp 1,547,700,000
PT Asuransi Jaya Proteksi US$ 183,040,500
PT Asuransi Cakrawala Proteksi US$ 171,882,657
PT Asuransi Indrapura US$ 120,747,356
PT Asuransi MSIG Indonesia US$ 96,706,435
PT China Typhing Indonesia US$ 54,471,000
PT Asuransi Mitra Maparya US$ 51,341,000
PT Asuransi Wahana Tata US$ 26,610,931
PT Asuransi Jasindo US$ 12,652,733
PT Asuransi Himalaya Pelindung US$ 10,178,918
Asuransi Rama Satria Wibawa US$ 6,753,416
PT Asuransi ACA US$ 4,052,050
PT Tri Dharma Proteksi US$ 600,856
PT Sompo Japan Insurance Indonesia US$ 539,590
Management believes that the insurance coverages are adequate to cover possible losses on the assets
insured.
Fair value of property, plant and equipment of the Company and its subsidiaries as of December 31, 2014
and 2013 amounted to US$ 717,084,921 and US$ 728,745,337, respectively.
As of December 31, 2014 and 2013, property, plant and equipment includes assets with acquisition cost
of US$ 14,052,932 and US$ 17,581,391, that are already depreciated in full but are still in use.
22. INTANGIBLE ASSETS

2014 2013
US$ US$
PT Multi Tambangjaya Utama 177,314,072 184,492,190
PT Mitrabahtera Segara Sejati Tbk 60,835,275 79,553,821
PT Mitra Energi Agung 39,507,731 48,803,667
PT Petrosea Tbk - 1,405,622
System development and computer software 7,324,759 6,889,021
Net book value at end of year 284,981,837 321,144,321
- 64 -
Changes in intangible assets are as follows:

2014 2013
US$ US$

Addition 3,530,326 2,746,686
Transfer from property, plant and equipment (Note 21) - 1,107,395
Impairment on intangible asset - (14,106,461)
Current year amortization
Acquisition of subsidiaries (36,598,221) (38,238,275)
System development and computer software (3,094,589) (2,185,861)
Ending balance 284,981,837 321,144,321
PT Multi Tambangjaya Utama

The intangible assets resulted from the acquisition of MUTU, a company engaged in business of mining
activities with CCoW area located in the North and South Barito - Central Kalimantan.
Fair value of the intangible assets was based on a valuation report prepared by an independent
appraiser. The valuation is based on income approach with Excess Earning method.
The intangible assets include costs amounting to US$ 9.2 million with regard to purchase of Distribution
Rights and Obligations to support MUTU’s sales of coal.
The intangible asset is amortized over the estimated useful life of 27 years.
PT Mitrabahtera Segara Sejati Tbk
The intangible assets resulted from the acquisition of MBSS and its subsidiaries, which mainly pertains to
the long-term contracts of MBSS (Note 49).
Fair value of the intangible assets was based on a valuation report prepared by an independent appraiser.
The valuation is based on income approach with Excess Earning method.
The intangible asset is amortized over the estimated useful life of 7 years.
In addition to the long-term contracts of MBSS, intangible assets included the computer software of
MBSS.
PT Mitra Energi Agung
The intangible assets resulted from the acquisition of MEA, a company engaged in business of mining
activities under Mining Coal Exploration Permit located in the East Kutai – East Kalimantan.
Fair value of the intangible assets was based on a valuation report prepared by an independent appraiser.
The intangible assets is amortized over the estimated useful life of 7 years.
- 65 -
PT Petrosea Tbk
The intangible asset resulted from the acquisition of PT Petrosea Tbk (Petrosea) and its subsidiaries,
which pertains to the long-term contracts of Petrosea (Note 49).
Fair value of the intangible asset was based on a valuation report prepared by an independent appraiser.
The intangible assets is amortized over its estimated useful life of 5 years.
System Development and Computer Software
The intangible asset mainly relates to the development of the Company’s and its subsidiaries integrated
computer system.
The intangible asset is amortized over its estimated useful life of 3-5 years.
23. GOODWILL
This account represents the excess of acquisition cost over the Company’s interest in the fair value of the
net assets of subsidiaries net of accumulated impairment.
December 31,
2014 and 2013
US$
PT Multi Tambangjaya Utama 56,745,431

PT Petrosea Tbk and its subsidiaries 28,978,661
PT Mitrabahtera Segara Sejati Tbk and its subsidiaries 33,730,009
Net carrying amount 119,454,101
In 2013, management provided an impairment on its whole carrying amount of goodwill from WAGL
and SMG amounting to US$ 415,997 and US$ 73,343, respectively, on the consideration of the
future economic benefits of such businesses.
Management believes that impairment of goodwill as of December 31, 2014 and 2013 is adequate.
- 66 -
24. BANK LOANS

2014 2013
US$ US$
U.S. Dollar
Citibank, N.A., Indonesia 30,246,290 -
Syndicated loan (Standard Chartered Bank) 12,346,478 12,346,478
Standard Chartered Bank - 2,831,904
Total principal loan 86,092,768 37,678,382

Accrued interest 156,909 57,011
Total 86,249,677 37,735,393
As of December 31, 2014 and 2013, details of such facilities are as follows:
Type of Maximum Interest rate December 31, December 31,

Creditor Entity facility facility Agreement date Maturity date per annum 2014 2013
US$ US$ US$
Citibank, N.A., Indonesia The Company and IIC Short term loan 25,000,000 November 15, 2013 June 1, 2015 LIBOR + 2.5% 10,000,000 -
October 13, 2015 LIBOR + 2.5% 10,000,000 -
Petrosea Working capital credit 20,000,000 October 29, April 28, 2015 LIBOR + 2.5% 5,164,644 -
2012 June 10, 2015 LIBOR + 2.5% 5,081,646 -
Sub total 30,246,290 -
PT Bank Mandiri (Persero) Tbk The Company Working capital credit 75,000,000 July 18, 2012 June 1, 2015 LIBOR + 4.24% 20,000,000 -
TPEC Working capital credit 35,000,000 November 5, 2010 November 5, 2015 6% 10,000,000 9,000,000
Sub total 30,000,000 9,000,000
PT Bank ANZ Indonesia Petrosea Working capital credit 22,500,000 May 13, 2011 September 30, 2015 LIBOR + 2.5% 12,500,000 12,500,000
Syndicated loan coordinated by MBSS Revolving Credit 12,346,478 May 23, 2013 May 23, 2015 LIBOR + 3% 12,346,478 12,346,478
Standard Chartered Bank
PT Bank International Indonesia Tbk MSC Working capital credit 1,000,000 February 24, 2011 February 24, 2015 5.55% 1,000,000 1,000,000
Standard Chartered Bank TPEC Bond and guarantee 30,000,000 February 28, February 28, 2015 3% - 2,831,904
2013
Total principal loan 86,092,768 37,678,382
Accrued interest 156,909 57,011
Total 86,249,677 37,735,393
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Citibank, N.A., Indonesia

The agreement relating to the loan facilities between the Company, IIC and Citibank N.A., Indonesia
contain certain covenants, among other things:
 Any change in the composition of shareholders of the Company and IIC which results the Parent
Company ceasing to own, directly or indirectly, at least 51% (fifty one per cent) of the subsidiaries
shares of the Company and IIC is subject to the prior written consent of the bank;
 the Company and IIC shall promptly notify the bank of any change in the shareholders of the Parent
Company and IIC; and
 the Company and IIC does and shall maintain insurance on all its property and assets with coverage
normal.
In January 2015, IIC made an early payment of its bank loan to Citibank.
PT Bank Mandiri (Persero) Tbk

The Company
The agreement relating to the loan facilities between the Company and PT Bank Mandiri (Persero) Tbk
contain certain covenants, among other things, the Company shall not do the following actions without
prior written approval from the bank to:
 act as a guarantor of debt unless permitted under terms and conditions applied;
 change the Company’s shareholder until the controller changing where PT. Indika Mitra Energi is no
longer as a majority shareholder; and
 guarantee the Company’s assets unless permitted under terms and conditions applied.
On February 17, 2015, the Company made a partial payment of such loan Working Capital Credit from
PT Bank Mandiri (Persero) Tbk amounting to US$ 10,000,000.
TPEC
The facility together with other credit facilities from PT Bank Mandiri (Persero) Tbk are secured by certain
trade accounts receivable/project claim (Note 7) amounting to Rp 197.22 billion equivalent to
US$ 15,853,698 and US$ 50,000,000, time deposit placed at the same bank amounting to US$ 2,150,000
(Note 6), and certain land and building certificate (SHGB) (Note 21) owned by TPEC.
TPEC is restricted to, among other things: without written approval from bank transfer assets used as
collateral, obtain new credit facilities from other financial institution except in the normal course of
business, act as guarantor to other parties, and transfer its rights and obligations in this loan agreement to
another party without written consent from the bank. TPEC is also required to maintain financial ratios as
stipulated in the agreement.
PT. Bank ANZ Indonesia
Based on amendment between Petrosea and PT. Bank ANZ Indonesia, any overdue principal and
interest shall carry interest at 2.5% per annum above the stipulated interest rate. The agreements also
require the Company to maintain certain financial ratios computed based on the the Company’s financial
statements.
These loans are collateralized by certain trade accounts receivable and property, plant and equipment of
Petrosea and Letter of Awareness from the Company (Notes 7 and 21).
- 68 -
The agreement relating to the above loan facilities contain certain covenants, among other things,
Petrosea shall not do the following actions without prior written approval from the bank:
 any change in the shareholders of the parent company; and
 any merger or consolidation with any other company.
In addition, Petrosea shall notify ANZ of the following:

 any change in the ownership of the shareholders of the parent company; and
 dividend payment.
Syndicated Loan coordinated by Standard Chartered Bank
On May 23, 2013, MBSS obtained a club deal loan facility from PT Bank ANZ Indonesia (ANZ) and
Standard Chartered Bank (SCB) amounting to US$ 59,085,238 which consist of Term Loan Facility
amounting to US$ 46,738,760 and Revolving Credit Facility amounting to US$ 12,346,478.
This Revolving Credit facility is obtained to refinance loan from PT Bank Internasional Indonesia Tbk,
PT Bank DBS Indonesia and PT Bank Permata Tbk.
The facility has the same collateral and covenants as those of the long term syndicated loan facility (Note
28).
PT Bank International Indonesia Tbk (BII)
This credit facility is secured by:

 One unit of floating crane named Princesse Chloe;
 Fiduciary warranty over MSC’s receivables to PT Berau Coal or other third parties, which charter the
vessel.
MSC should comply with certain financial ratios as follows:

 EBITDA / debt is not less than one time;
 Leverage Ratio is not more than 2.5 times; and
 Maintain minimum balance amounted to US$ 150,000 in the account.
Standard Chartered Bank required TPEC to provide a cash margin deposit of 10% of facility of import
letter of credit that was used.
TPEC shall maintain its current ratio at a minimum of 1.0 time and debt to equity ratio at a maximum of
1.0 time.
As of December 31, 2014 and 2013, management believes that the Company and its subsidiaries have
complied with all significant covenants required by the banks.
- 69 -
25. TRADE ACCOUNTS PAYABLE

2014 2013
US$ US$
By creditor:
Related parties (Note 47) 19,995 248,087
Third parties 104,221,448 63,447,977
Total 104,241,443 63,696,064
By age:
Current 85,596,948 47,443,497
Overdue
1 - 30 days 7,678,058 11,012,324
31 - 90 days 2,620,547 1,661,354
91 - 180 days 1,872,266 2,029,128
181 - 360 days 3,759,737 299,060
> 360 days 2,713,887 1,250,701
Total 104,241,443 63,696,064
By currency:
United States Dollar 75,684,140 52,948,035
Rupiah 27,154,553 9,708,484
Euro 890,560 328,426
Singapore Dollar 478,571 641,873
Australian Dollar 18,490 51,621
Japanese Yen 3,334 4,870
Others 11,795 12,755
Total 104,241,443 63,696,064
Accounts payable to sub-contractors and purchase of goods and services transactions from third parties
has credit terms of 14 to 50 days. No interest is charged to the trade payables.
26. TAXES PAYABLE

2014 2013
US$ US$
Current tax (Note 41)
Subsidiaries
Non final
2014 944,392 -
2013 1,019,228 597,856
2012 53,817 -
2011 33,290 -
Income tax:
Article 15 121,490 98,079
Article 21 3,181,865 3,215,754
Article 23 374,189 372,683
Article 25 100,582 92,655
Article 26 54,679 36,563
Article 4(2) 513,118 372,612
Value added tax 674,449 772,298
Total 7,071,099 5,558,500
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27. ACCRUED EXPENSES

2014 2013
US$ US$
Construction and sub-contractors expenses 30,086,080 27,574,416

Purchase of materials and spare parts 28,623,983 70,011,094
Salaries, employees' incentives and bonus 13,436,251 11,720,017
Tax penalty 5,544,759 -
Professional fees 1,371,210 2,275,702
Vehicle tax 1,265,607 1,212,587
Total 86,109,922 118,780,781
28. LONG-TERM LOANS

2014 2013
US$ US$
Bank loans
Rupiah
PT Bank Victoria International Tbk 209,389 282,798
PT Bank Tabungan Negara (Persero) Tbk - 453,340
PT Bank Pembangunan Daerah
Jawa Barat dan Banten - 69,222
U.S. Dollar
Syndicated loan (Standard Chartered Bank) 42,369,026 44,921,847
PT Indonesia Eximbank 4,932,920 6,432,134
Singapore Dollar
Bank DBS Ltd., Singapore Branch 14,411,921 15,734,919
Total 87,026,486 100,689,784
Less current maturities (15,831,756) (12,756,345)
Long-term loans - net 71,194,730 87,933,439
Schedule of principal repayment
In the first year 15,831,756 12,756,345
In the second year 18,320,340 15,590,523
In the third year 34,816,556 18,309,916
In the fourth year 12,745,060 22,635,291
In the fifth year 5,312,774 13,549,111
In the sixth year - 6,056,213
More than sixth year - 11,792,385
Total 87,026,486 100,689,784
- 71 -
As of December 31, 2014 and 2013, details of such facilities of long-term loans are as follows:
Type of Interest rate December 31, December 31,

Creditor Entity facility Maximum facility Agreement date Maturity date per annum 2014 2013
Rp 000 US$ US$ US$
PT Bank Permata Tbk MBSS Term Loan - 18,000,000 June 14, 2012 May 23, 2018 5.75% 13,650,875 15,725,755
MASS Term Loan 12,000,000 May 22, 2012 May 22, 2018 6.00% 7,420,879 9,582,742
Sub total 21,071,754 25,308,497

Syndicated loan coordinated by MBSS Term Loan - 46,738,760 May 23, 2013 May 23, 2018 LIBOR + 3.25% 42,369,026 44,921,847
PT Indonesia Eximbank MBSS Financing credit - 8,000,000 April 2, 2012 April 2, 2018 6.1% 4,932,920 6,432,134
PT Bank International Indonesia Tbk MSC Term Loan - 19,200,000 February 24, 2011 February 24, 2016 5.5% 4,031,476 7,487,027
Bank DBS Ltd. Singapore Branch TS Long term loan - 16,662,800 July 1, 2011 July 1, 2031 Floating rate 14,411,921 15,734,919
PT Bank Victoria International Tbk The Company Financing credit - - February, 2012 August, 2016 9.03%-9.94% 209,389 282,798
PT Bank Tabungan Negara (Persero) SMG Credit Investment 8,300,000 667,203 August 31, 2010 October 30, 2019 13.5% - 453,340
PT Bank Pembangunan Daerah WAGL General credit 4,500,000 361,736 October 5, 2010 September 11, 2014 13.5% - 69,222
Jawa Barat dan Banten investment
Total 87,026,486 100,689,784
PT Bank Permata Tbk
Such facility to MBSS were secured by:
 1 unit floating crane with a pledged value of 120%;

 Receivables at a minimum amount of US$ 750,000.
MBSS is required to comply with several restrictions to maintain financial ratios:

 Leverage ratio maximum 3 times;
 Debt service coverage ratio minimum 1.25 times.
MBSS must obtain written approval from the bank if it will obtain borrowings which amounted to
US$ 10,000,000 and above.
Such facility to MASS is secured by 1 unit floating crane named FC Blitz.
MASS is required to comply with several restrictions to maintain financial ratios as follows:
 Debt to equity ratio maximum 4 times;
 Debt service coverage ratio minimum 1.25 times.
Syndicated Loan coordinated by Standard Chartered Bank
On May 23, 2013, MBSS obtained a club deal loan facility from PT Bank ANZ Indonesia (ANZ) and
Standard Chartered Bank Indonesia (SCB) amounting to US$ 59,085,238 which consist of Term Loan
Facility amounting to US$ 46,738,760 and Revolving Credit Facility amounting to US$ 12,346,478.
This Term Loan facility is obtained to refinance loans in PT Bank Permata Tbk amounted to
US$ 13,461,775; and all loans in PT Bank Internasional Indonesia Tbk, The Hongkong and Shanghai
Banking Corporation Limited and PT Bank Danamon Indonesia Tbk.
This facility has been fully drawn in May 28 - June 24, 2013.
- 72 -
This loan is secured by:
 Fiduciary over MBSS’ receivables, with fiduciary collateral value of US$ 12,000,000.
 20 unit of barges by the name of Finacia 100, Finacia 101, Finacia 102, Finacia 103, Finacia 105,
Finacia 35, Finacia 36, Finacia 38, Finacia 50, Finacia 58, Finacia 63, Finacia 69, Finacia 71, Finacia
97, Finacia 98, Finacia 99, Finacia 82, Labuan 2705, Finacia 81, Finacia 70.
 28 unit of tug boats by the name of Entebe Emerald 23, Entebe Emerald 25, Entebe Emerald 33,
Entebe Emerald 50, Entebe Emerald 52, Entebe Megastar 72, Entebe Power 10, Entebe Power 8,
Entebe Star 30, Entebe Star 57, Entebe Star 61, Entebe Star 62, Entebe Star 76,
Mega Power 12, Mega Power 23, Selwyn 3, Entebe Emerald 69, Entebe Star 71, Megastar 75,
Segara Sejati 1, Segara Sejati 3, Entebe Star 78, Entebe Emerald 51, Entebe Star 69, Entebe
Megastar 63, Entebe Megastar 67, Entebe Megastar 73, Entebe Megastar 79, Entebe Megastar 65,
Entebe Megastar 66.
 Floating Crane FC Nicholas
MBSS is required to comply with several restrictions, among others, MBSS is required to maintain
financial ratios as follows:
 Ratio of Consolidated Net Debt to EBITDA shall not exceed 3 : 1

 Debt Service Coverage Ratio shall not be less than 1.4 : 1
 Gearing Ratio shall not exceed 2 : 1
 Security Coverage Ratio not less than 1.25 : 1
The facility also require MBSS to have Debt Service Reserve Accounts (DSRA) at PT Bank ANZ
Indonesia and Standard Chartered Bank, Jakarta Branch.
The principal repayment schedule are as follows:
Year Principal repayment
1 3.32%
2 6.68%
3 20.00%
4 30.00%
5 40.00%
100.00%
The facility has the same collaterals and covenants as those of the syndicated loan facility (Note 24).
PT Indonesia Eximbank (Eximbank)
This loan is secured by 3 sets of tugboat and barges which is financed by the bank.
MBSS shall not perform the following action without prior writtern approval from Eximbank:
 Change the status and reduce the paid up capital of the MBSS;
 Acquire new debt other than in the normal course of business that will result in DER ratio exceed 3 times;
 Undertake any merger or acquisition that could affect financing obligations payment;
 Use the proceeds other than originally planned;
- 73 -
 Sell or transfer assets that have been pledged to bank; and
 Undertake transaction with other parties that does not follow normal term.
PT Bank International Indonesia Tbk (BII)
The loans collaterials and negative covenants between PT Bank International Indonesia Tbk (BII) and
MSC are same as its bank loans (Note 24).
MSC is required to maintain several financial ratios as follows:

 EBITDA/financial payment not less than 1; and
 Leverage ratio not more than 2.5 times.
Bank DBS Ltd. Singapore Branch

The loan between DBS and TS bears the following interest rate per annum:
- 1st year at 2.58% fixed;
- 2nd year at 2.78% fixed;
- 3rd year at 2.98% fixed;
- Subsequent years at the bank’s prevailing rate.
This loan is secured by TS’ property (Note 21) and a deed of subordination to be executed by directors/
shareholders/TS in respect of subordination of all existing and future loan.
PT Bank Victoria International Tbk
Loans from PT Bank Victoria International Tbk represent long-term loan of the Company and its
subsidiaries for financing of new vehicles for a period ranging from 2-3 years.
The agreement of the long-term loan contain certain covenants, which the Company and its subsidiaries
are required to fulfill, including provision regarding events of default.
PT Bank Tabungan Negara (Persero) Tbk
The loan between SMG and BTN has a term of 120 months, with a grace period for payment of principal
of 6 months starting from October 27, 2009 with final maturity date on October 30, 2019. The above
credit facility is an amendment of the credit facility provided by BTN on October 27, 2009 to the previous
shareholders of SMG (prior to the acquisition of SMG by the Company).
As of December 31, 2014, the outstanding balance of this loan amounting US$ 453,340 was transferred
to liabilities directly associated with assets held for sale.
In February 2015, SMG has fully paid this loan to BTN.
PT Bank Pembangunan Daerah Jawa Barat dan Banten

The loan between WAGL and PT Bank Pembangunan Daerah Jawa Barat dan Banten (BJB) has a term
of 64 months, starting from May 11, 2009, payable on every 3 months for the principal of the loan. The
above credit facility is an amendment of the credit facility provided by BJB on May 11, 2009 to the
previous shareholders of WAGL, prior to the acquisition of WAGL by the Company.
In August 2014, WAGL has fully paid this loan to BJB.
As of December 31, 2014 and 2013, management believes that the Company and its subsidiaries have
complied with all significant covenants required by the banks.
- 74 -
29. LEASE LIABILITIES

The future minimum lease payments based on the lease agreements as of December 31, 2014 and 2013 are
as follows:
Present value of
Minimum lease payments minimum lease payments
December 31, December 31, December 31, December 31,
2014 2013 2014 2013
US$ US$ US$ US$
a. By Due Date:
Not later than one year 32,944,315 50,720,969 31,547,117 47,851,969
Later than one year and not later than
five years 22,606,254 55,291,204 22,016,993 53,290,076
Sub-total 55,550,569 106,012,173 53,564,110 101,142,045
Less: future finance charges (1,986,459) (4,870,128) - -
Less: unamortized lease fees (1,197,266) (1,499,035) (1,197,266) (1,499,035)

Add: accrued interest - - 84,827 166,333
Present value of minimum lease
payments 52,366,844 99,643,010 52,451,671 99,809,343
Current maturity (31,631,848) (48,014,837)
Long-term lease liabilities - Net 20,819,823 51,794,506
b. By Lessor:
PT Mitra Pinasthika Mustika Finance (MPMF) 32,085,729 70,423,986
PT Mitsubishi UFJ Lease and Finance
Indonesia 11,955,209 16,775,262
PT Orix Indonesia Finance 6,904,167 9,610,671
PT Caterpillar Finance Indonesia 2,348,291 4,310,678
PT Toyota Astra Financial Services 270,714 -
PT Bumiputera BOT Finance - 19,102
BII Finance - 2,346
Sub-total 53,564,110 101,142,045
Less: unamortized lease fees (1,197,266) (1,499,035)
Add: accrued interest 84,827 166,333
Total 52,451,671 99,809,343
Lease liabilities mainly consist of purchases of machineries by Petrosea. These liabilities are secured by
the related leased assets. The leases have terms of 4 to 5 years.
In 2013, additional sale and leaseback transactions were carried out by Petrosea which were classified
as finance lease. In 2014, there were no additional leaseback transactions carried out by Petrosea.
Lease liabilities denominated in currency other than the respective functional currency of the Company
and its subsidiaries are as follows:

2014 2013
US$ US$
Rupiah 270,714 21,448
- 75 -
PT Mitra Pinasthika Mustika Finance (MPMF)

On June 10, 2011, Petrosea and MPMF entered into a Finance Lease Facility Agreement, whereby
Petrosea was granted a finance lease facility amounting to US$ 45 million. The interest rate on this
facility is 3% plus LIBOR. This facility is available for six months.
On January 24, 2012, Petrosea and MPMF agreed to amend the above Finance Lease Facility
Agreement, whereby Petrosea was granted an additional finance lease facility amounting to US$ 75
million. The interest rate on this facility is 3.125% plus LIBOR. The facility is available for 24 months until
January 24, 2014.
On August 8, 2012, Petrosea and MPMF agreed to amend this Finance Lease Facility Agreement by
adding Oversea-Chinese Banking Corporation Limited and PT. Bank OCBC NISP, Tbk as the additional
creditors, which originally only PT Bank ANZ Indonesia and also The Trust Company (Asia) Limited as
the facility agent.
PT Mitsubishi UFJ Lease & Finance Indonesia
On April 18, 2012, Petrosea and PT Mitsubishi UFJ Lease & Finance Indonesia entered into a Finance
Lease Facility Agreement, whereby Petrosea was granted a finance lease facility amounting to US$ 25
million. The interest rate on this facility is 3.40% plus SIBOR. Starting January 2014, the interest rate is
change to 3.40% plus LIBOR. The facility is available for 6 months.
PT Orix Indonesia Finance
On June 28, 2012, Petrosea and PT Orix Indonesia Finance entered into a Finance Lease Facility
Agreement, whereby Petrosea was granted a finance lease facility amounting to US$ 15 million. The
interest rate on this facility is 3.50% plus SIBOR. Starting January 2014, the interest rate is change to
3.50% plus LIBOR. The facility is available for 12 months.
PT Caterpillar Finance Indonesia

On March 3, 2005, Petrosea and PT Caterpillar Finance Indonesia entered into a Finance Lease Facility
Agreement, whereby Petrosea was granted a finance lease facility amounting to US$ 50 million. This
facility is available until August 20, 2013 The interest rate on this facility is 3.50% plus interest rate of 3
(three) months LIBOR and 3.75% plus interest rate of 3 (three) months LIBOR.
Significant general terms and conditions of the finance leases are as follows:
i. Petrosea is prohibited to sell, lend, sublease, or otherwise dispose of or, cease to exercise direct
control over, the leased assets;
ii. Petrosea is prohibited to provide securities/collateral, including security deposit, or guarantee to other
lessors over the leased assets; and
iii. For lease liability from MPMF, Petrosea is required to maintain certain financial ratios computed
based on the consolidated financial statements.
PT Toyota Astra Finance Services
On October 1, 2014, Petrosea and PT Toyota Astra Finance Services entered into a consumer finance
facility agreement wherein Petrosea was granted a finance lease facility for vehicles amounting to
Rp 1,809,500,000. The facility is available until October 10, 2017. The interest rate on this facility is 5.5% per
annum.
On November 4, 2014, Petrosea and PT Toyota Astra Finance Services entered into a consumer finance
facility agreement wherein Petrosea was granted a finance lease facility amounting to Rp 1,809,500,000.
The facility is available until November 4, 2017. The interest rate on this facility is 5.5% per annum.
- 76 -
30. BONDS PAYABLE

2014 2013
US$ US$
Senior Notes III, nominal of US$ 300 million in 2011 300,000,000 300,000,000
Senior Notes IV, nominal of US$ 500 million in 2013 500,000,000 500,000,000
Unamortized bond issuance costs (32,162,971) (38,025,946)
Accrued interest - current 17,165,617 17,165,617
Total net 785,002,646 779,139,671
Presented in consolidated statements of financial position as:

Current liabilities 17,165,617 17,165,617
Noncurrent liabilites 767,837,029 761,974,054
Total 785,002,646 779,139,671
Senior Notes III, US$ 300 Million

On May 5, 2011, IEF B.V., a direct wholly owned subsidiary of the Company, issued Senior Notes (“Notes
III”) amounting to US$ 115 million due in May 2018. The Notes III were issued together with the US$ 185
million related to Exchange Offer Senior Notes I issued in 2007. The Notes III bear interest at 7% per
annum, payable semi-annually on May 5 and November 5 of each year, commencing on November 5,
2011. The Notes III are listed on the Singapore Stock Exchange. In relation to the issuance of the Notes
III, Citicorp International Limited acted as trustee, while the Company and IIC, TPE, TPEC and TS as
guarantors.
The Notes III are secured on a first priority basis by a lien on the following collateral:
 Pledges of the Company’s investments in shares of stock of Tripatra Group, TPEC, IEF BV, IEC BV and
IIC (Note 1b) and IIC’s investment in shares of stock of PT Kideco Jaya Agung (Note 14). These
collaterals are shared pari passu amongst Notes IV;
 A security interest in the Indika Proceeds Accounts, in the name of ICRL, held at Citibank, N.A.,
New York amounting US$ 50,000,000 since the issuance of Notes III. On February 2012, the
Company had drawdown the collateral funds and use the proceeds for acquisitions of energy-related
assets of one of the Company’s subsidiaries, IIR, which was specified in the indenture agreement;
and
 A security interest in IEF B.V.’s right under the Intercompany Loans. As of reporting dates, all the
Intercompany Loans are fully eliminated for consolidation purposes.
IEF B.V. will be entitled at its option to redeem all or any portion of the Notes III. At any time prior to
May 5, 2014, IEF B.V. will be entitled at its option to redeem up to 35% of the Notes III with the net
proceeds of one or more equity offerings at a redemption price of 107%. At any time prior to
May 5, 2015, IEF B.V. will be entitled at its option to redeem the Notes III, in whole but not in part, at a
redemption price equal to 100% plus the applicable premium as further determined in the Notes III
indenture. At any time on or after May 5, 2015, IEF B.V. may redeem in whole or in part of the Notes III at
a redemption price specifically described in the Notes III indenture. The Notes III are subject to
redemption in whole at their principal amount at the option of the IEF B.V. at any time in the event of
certain changes affecting taxation between Indonesia and Netherlands.
- 77 -
In relation to the Notes III, the Company and certain subsidiaries are restricted to, among others, perform
the following:
 Incur additional indebtedness and issue preferred stock;

 Declare dividends on capital stock or purchase or redeem capital stock;
 Make investments or other specified “Restricted Payments”;
 Issue or sell capital stock of restricted subsidiaries;
 Guarantee indebtedness;
 Sell assets;
 Create any lien;

 Enter into sale and leaseback transactions;
 Enter into agreements that restrict the restricted subsidiaries’ ability to pay dividends and transfer
assets or make inter-issuer loans;
 Enter into transactions with equity holders or affiliates;
 Effect a consolidation or merger; or
 Engage in different business activities.
These covenants, including the above restrictions, are subject to a number of important qualifications and
exceptions as described in the Notes III indenture.
Proceeds from guaranteed Notes III issued were used for (i) redemption, repurchase or other repayment
of US$ 65 million Notes I issued in 2007 (ii) payment of amount to exchange and consent holders of
Senior Notes I as premium and consent fee; (iii) funding capital expenditures needed, including plan of
expansion from Petrosea, subsidiary, to support production activities; (iv) investment in coal exploration
activities and (v) working capital and other general corporate purposes.
The Notes III have been assigned a rating of “B1” with negative outlook by Moody’s and “B+” with
negative outlook by Fitch.
Senior Notes IV, US$ 500 Million
On January 24, 2013, IEF II B.V., a direct wholly owned subsidiary of the Company, issued Senior Notes
(“Notes IV”) amounting to US$ 500 million due in January 2023, bearing interest at 6.375% per annum,
payable semi-annually on January 24 and July 24 of each year, commencing on July 24, 2013. The
Notes IV are listed on the Singapore Stock Exchange. In relation to the issuance of the Notes IV, Citicorp
International Limited acted as Trustee, while the Company and IIC, TPE, TPEC and TS as Guarantors.
The Notes IV are secured on a first priority basis by a lien on the following collaterals:
 Pledges of the Company’s investments in shares of stock of TPE, TPEC, IEF II BV, IEC II BV and IIC (Note
1b) and IIC’s investment in shares of stock of PT Kideco Jaya Agung (Note 14) and TPEC’s investment in
shares of stock of TS. These collaterals are shared pari passu amongst Notes III and IV.
 A security interest in IEC II B.V.’s right under the Intercompany Loans. As of reporting dates, all the
intercompany loans are fully eliminated for consolidation purposes.
- 78 -
IEF II B.V. will be entitled at its option to redeem all or any portion of the Notes IV. At any time prior to
January 24, 2017, IEF II B.V. will be entitled at its option to redeem up to 35% of the Notes IV with the
net proceeds of one or more equity offerings at a redemption price of 106.375%. At any time prior to
January 24, 2018, IEF II B.V. will be entitled at its option to redeem the Notes IV, in whole but not in
part, at a redemption price equal to 100% plus the applicable premium as further determined in the
Notes IV indenture. At any time on or after January 24, 2018, IEF II B.V. may redeem in whole or in part
of the Notes IV at a redemption price specifically described in the Notes IV indenture. The Notes IV are
subject to redemption in whole at their principal amount at the option of the IEF II B.V. at any time in
the event of certain changes affecting taxation between Indonesia and Netherlands.
In relation to the Notes IV, the Company and certain subsidiaries are restricted to, among others, perform
the following:
 Incur additional indebtedness and issue preferred stock;

 Declare dividends on capital stock or purchase or redeem capital stock;
 Make investments or other specified “Restricted Payments”;
 Issue or sell capital stock of restricted subsidiaries;
 Guarantee indebtedness;
 Sell assets;
 Create any lien;

 Enter into sale and leaseback transactions;
 Enter into agreements that restrict the restricted subsidiaries’ ability to pay dividends and transfer
assets or make inter-issuer loans;
 Enter into transactions with equity holders or affiliates;
 Effect a consolidation or merger; or
 Engage in different business activities.
These covenants, including the above restrictions, are subject to a number of important qualifications and
exceptions as described in the Notes IV Indenture.
Proceeds from guaranteed Notes IV issued were used for (i) repayment of bank loans from Citibank,
N.A., UBS AG Singapore branch, Standard Chartered Bank, Jakarta branch and Bank Mandiri (Persero)
Tbk., totaling to US$ 235 million; (ii) redemptions of Notes II in aggregate principal amount of US$ 230
million together with accrued and unpaid interest thereon and the relevant redemption price, pursuant to
the optional redemption feature stated in Indenture of Notes II; and (iii) repayment of other existing
indebtedness, working capital and other general corporate purposes.
The Notes IV have been assigned a rating of “B1” with negative outlook from Moody’s and “B+” with
negative outlook by Fitch.
As of December 31, 2014 and 2013, management is of the opinion that the Company and its subsidiaries
have complied with all significant covenants required by the bond holders of the above Notes.
The interest expense incurred for Notes for the years ended December 31, 2014 and 2013 amounted to
US$ 52,875,000 and US$ 69,837,500, respectively (Note 39).
- 79 -
31. EMPLOYMENT BENEFITS

2014 2013
US$ US$
Post-employment benefits 23,851,652 19,196,496
Long service leave 3,469,744 2,664,387
Total 27,321,396 21,860,883
The Company and its subsidiaries provide post-employment benefits for qualifying employees in
accordance with Labor Law No. 13/2003. The number of employees entitled to the benefits is 3,826 in
2014 and 4,202 in 2013.
Amounts recognized as expense in the consolidated statements of comprehensive income in respect of

these post-employment benefits are as follows:

2014 2013
US$ US$
Current service cost 7,013,100 5,364,052
Interest cost 1,370,715 970,008
Past service cost (vested) 4,562 101,912
Immediate adjustment of defined benefit (228,675) (173,843)
Amortization actuarial losses (gain) (3,289) 278,088
Effect of curtailment/settlement (1,823,691) (1,314,172)
Benefits paid in period excess payment 1,086,222 6,253
Total 7,418,944 5,232,298
Movement in the present value of employee benefits obligation are as follow:

2014 2013
US$ US$
Opening balance of present value of unfunded obligations 19,015,168 24,063,920

Current service cost 7,013,100 5,364,052
Interest cost 1,370,715 970,008
Curtailments effect (1,339,602) (1,300,526)
Expected benefits paid (1,913,939) (1,300,085)
Actuarial gain (222,244) (4,647,369)
Past service cost 22,812 1,031,111
Gain in foreign exchange (685,767) (5,165,943)
Closing balance of present value of unfunded obligations 23,260,243 19,015,168
- 80 -
The amounts recognized in the consolidated of statements of financial position arising from the Company
and its subsidiaries’ obligations with respect to these post-employment benefits are as follows:

2014 2013
US$ US$
Present value of unfunded obligations 23,260,243 19,015,168

Past service cost (non-vested) (1,291) (5,842)
Unrecognized actuarial gain 592,700 187,170
Total 23,851,652 19,196,496
The cost of providing post-employment benefits is calculated by independent actuaries. The actuarial valuation
was carried out using the projected unit credit method and using the following key assumptions:
December 31, 2014 December 31, 2013
Discount rate 8% - 8.75% 8.4% - 9%

Salary increment rate 8% - 10% 10%
Mortality rate 100% TMI2/CSO' 80 100% TMI2/CSO' 80
Disability rate 5% TMI2/10% CSO' 80 5% TMI2/10% CSO' 80
Resignation rate 3% - 12% per annum 3% - 12% per annum
until age 25 -30 years then decreasing linearly until age 25 -30 years then decreasing linearly
to 0% at 54-55 years to 0% at 54-55 years
Normal retirement age 55 55
Historical experience adjustment for the current and the previous four years are as follows:
December 31, December 31, December 31, December 31, December 31,
2014 2013 2012 2011 2010
US$ US$ US$ US$ US$
Present value of unfunded
obligations 23,260,243 19,015,168 24,063,920 17,882,003 10,471,644
Value of experience adjustment 713,333 642,127 404,274 1,296,445 194,773
Percentage of experience
adjustment to present
value of unfunded obligations 3.07% 3.38% 1.68% 7.25% 1.86%
- 81 -
32. CAPITAL STOCK

December 31, 2014 and 2013
Number of Shares
Rp 100 par value Percentage of Total
Name of Stockholders per share) Ownership Paid-up Capital
US$
PT Indika Mitra Energi 3,307,097,790 63.47% 36,111,513
Ir. Pandri Prabono Moelyo 231,100,200 4.44% 2,523,475
Eddy Junaedy Danu 81,880,500 1.57% 894,086
Agus Lasmono 10,156,000 0.20% 110,897
Wiwoho Basuki Tjokronegoro 5,264,500 0.10% 57,485
Indracahya Basuki 1,403,500 0.03% 15,325
Wishnu Wardhana 1,208,500 0.02% 13,196
M. Arsjad Rasjid P.M. 1,208,000 0.02% 13,191
Azis Armand 1,208,000 0.02% 13,191
Richard Bruce Ness 810,000 0.01% 8,845
Joseph Pangalila 165,000 0.00% 1,802
PT Indika Mitra Holdiko 10 0.00% 0.11
Public shares (each below 5%) 1,568,690,000 30.12% 17,129,148
Total 5,210,192,000 100.00% 56,892,154
33. ADDITIONAL PAID-IN CAPITAL
Difference in Value of
Restructuring Transaction
Paid-in capital Share Employee between Entitites
in excess of par issuance cost stock option Under Common Control Total
US$ US$ US$ US$ US$
Issuance of 833,142,000
Company's shares through
Initial Public Offering in 2008 254,633,211 (15,745,526) - - 238,887,685
Additional paid-in capital in 2011 through exercise

of employee and management stock option - - 1,097,573 - 1,097,573
Difference in Value of Restructuring Transaction between

Entities Under Common Control (SINTRES) - - - 10,862,663 10,862,663
Balance as of December 31, 2014 and 2013 254,633,211 (15,745,526) 1,097,573 10,862,663 250,847,921
In 2004, the Company acquired 99.959% shares of stock of PT Indika Inti Corpindo (IIC). The acquisition
was a transaction with an entity under common control as IIC has the same majority stockholder as the
Company with ownership interest of 99.959%. The difference between the acquisition cost and the net
assets acquired amounting to US$ 10,862,663 was presented as “Difference in Value of Restructuring
Transaction between Entities Under Common Control” under equity.
Starting January 1, 2013, the Company and its subsidiaries adopted PSAK 38 (revised 2012), Business
Combination of Entities Under Common Control, which has resulted to reclassification of SINTRES into
Additional Paid-In Capital.
- 82 -
34. NONCONTROLLING INTEREST AND CUMULATIVE TRANSLATION ADJUSTMENTS
a. Noncontrolling interest in net assets of subsidiaries

2014 2013
US$ US$

PT Petrosea Tbk 62,660,156 64,089,826
PT Mitra Energi Agung 10,976,944 14,555,653
PT Indika Energy Trading 56,501 -
PT Indika Inti Corpindo 18,472 18,230
PT Multi Tambangjaya Utama (3,599,175) 577,173
Total 220,163,562 229,951,416
b. Noncontrolling interest in income (loss) of subsidiaries

2014 2013
US$ US$

PT Petrosea Tbk 502,232 5,668,672
PT Indika Inti Corpindo 407 4,751
PT Indika Energy Trading (44,406) -
PT Mitra Energi Agung (3,389,016) (3,018,555)
PT Multi Tambangjaya Utama (4,176,348) (4,400,651)
Total (2,984,139) 8,689,013
c. Cummulative translation adjustments
Exchange differences relating to the translation of the net assets of the subsidiaries using different
functional currency other than the Company and its subsidiaries’ presentation currency (i.e. U.S. Dollar)
are recognized directly in other comprehensive income and accumulated in the foreign currency
translation reserve. Exchange differences previously accumulated in the foreign currency translation
reserve are reclassified to profit or loss on the disposal of those subsidiaries.
- 83 -
35. REVENUES
2014 2013
US$ US$
Contracts and service revenues

JOB Pertamina Medco Tomori Sulawesi 147,724,436 73,362,556
PT Adimitra Baratama Nusantara 97,704,963 85,220,920
PT Freeport Indonesia 65,780,195 61,338,120
Eni Muara Bakau B.V. 61,646,478 1,005,902
PT Gunung Bayan Pratama Coal 53,420,906 80,707,591
PT Indomining 50,816,000 -
PT Adaro Indonesia 22,873,991 30,111,414
PT Indonesia Pratama 18,520,399 4,944,406
PT Borneo Indobara 17,532,533 15,655,405
PT Kaltim Prima Coal 15,570,780 24,225,900
PT Berau Coal 14,334,556 16,555,399
PT Cotrans Asia 11,339,394 10,104,907
PT Pertamina Hulu Energi ONWJ 9,933,658 3,527,543
MI SWACO Indonesia 7,283,347 6,529,304
PT Metalindo Bumi Raya 6,436,092 3,740,392
PT Jhonlin Group 5,048,004 132,810
PT Holcim Indonesia Tbk 4,684,824 6,767,050
PT Indocement Tunggal Prakarsa Tbk 2,280,320 5,035,837
PT Singlurus Pratama 1,429,227 6,798,476
PT Karbon Mahakam 1,110,366 5,060,735
PT Indonesia Bulk Terminal 87,575 6,823,617
Total revenues from contracts and services 966,477,039 860,780,903
Sales of coal
Asia Green Energy 42,163,778 -
Datang International Ltd. 30,455,845 -
Rex Coal Pte. Ltd. 28,311,469 -
Trammo Pte. Ltd. 23,896,603 848,722
Trafigura Pte. Ltd. 10,437,926 -
IMR Metallurgical Resources AG 4,603,506 -
Total sales 143,031,272 2,613,289
Total revenues 1,109,508,311 863,394,192
In 2014 and 2013, revenue from services to related parties amounted to US$ 124,486,651 and
US$ 175,122,324, respectively or 11.22% and 20.28% of the above total revenues of the respective years
(Note 47).
- 84 -
Details of customers with transactions constituting more than 10% of total consolidated revenues in 2014
and 2013, all which are under the energy services segment, are as follows:
2014 2013
US$ US$

JOB Pertamina Medco Tomori Sulawesi 147,724,436 73,362,556
Total 446,509,976 360,297,449
36. COST OF CONTRACTS AND GOODS SOLD
2014 2013
US$ US$
Cost of contracts and services
Materials 171,783,198 159,883,326
Salaries, wages and employee benefits 160,634,311 143,363,561
Construction 136,008,373 47,733,604
Operational heavy equipment tools cost 103,597,405 95,197,431
Depreciation (Note 21) 90,591,953 85,367,417
Sub-contractors, installations,
communications supplies expense
and other direct costs 39,579,978 18,313,009
Fuel 29,042,337 27,203,979
Rental, repairs and utilities 30,220,626 40,598,023
Transportation 16,920,533 14,537,216
Catering services 5,128,469 3,490,462
Handling 4,381,252 4,027,646
Insurance 2,634,947 2,891,420
Certificates and shipping documents 2,154,053 2,599,362
Port charges and anchorage 1,642,196 1,226,840
Bank charges 1,299,117 1,033,067
Utilities 909,425 530,569
Heavy equipment supplies 682,692 1,175,033
Others (each below US$ 500,000) 9,306,207 13,111,631
Total cost of contracts and services 809,145,967 667,324,439
Cost of coals sold 139,326,730 2,663,166
Total cost of contracts and goods sold 948,472,697 669,987,605
Purchase of coal from PT Jhonlin Group, a third party, accounts for 12% of the total cost of contracts and
goods sold in 2014.
- 85 -
37. GENERAL AND ADMINISTRATIVE EXPENSES
2014 2013
US$ US$
Salaries, wages and employee benefits 66,857,295 85,266,587

Rental vehicle, building and equipment 18,942,495 23,743,772
Depreciation (Note 21) 11,172,151 12,175,471
Amortization 4,755,752 2,974,183
Travel and transportation 3,064,153 4,464,588
Losses attributable to temporary suspension of production 2,816,733 2,911,009
Office supplies 2,446,300 3,923,579
Repair and maintenance 1,348,806 2,383,467
Security expense 1,105,753 1,212,381
Insurance 1,038,129 1,918,818
Total 132,149,607 154,576,193
38. INVESTMENT INCOME
2014 2013
US$ US$
Interest income on loans to related parties (Note 47) 4,342,767 3,648,698

Time deposits 3,526,929 2,967,205
Current accounts and others 3,104,836 1,836,284
Total interest income 10,974,532 8,452,187
Unrealized (loss) gain on investment in portfolio (115,692) 674,200

Realized loss on investment in portfolio - (233,632)
Total 10,858,840 8,892,755
39. FINANCE COST
2014 2013
US$ US$
Interest expense on bonds payable (Note 30) 52,875,000 69,837,500

Interest on bank loans and long-term loans 6,897,641 9,748,435
Amortization of bond issuance cost 5,862,975 13,632,835
Interest on lease lliabilities 2,789,642 4,685,675
Amortization of transaction cost bank loan 619,339 3,943,660
Premium on early redemption of Notes II - 11,212,500
Others 389,996 1,051,458
Total 69,434,593 114,112,063
- 86 -
40. OTHERS - NET
2014 2013
US$ US$
Loss on foreign exchange - net 4,040,491 9,797,528

Tax penalties 3,527,916 26,229
Expense related to the settlement of PT Great Dyke case 3,062,485 -
Impairment losses on trade account receivable (Note 7) 1,699,811 75,867
Impairment on goodwill (Note 23) - 489,340
(Gain) loss on sale of property and equipment (Note 21) (867,662) 6,359,154
Loss on derivative transaction - 1,263,310
Exploration expense - 5,593,314
Others (each below US$ 1 million) (1,963,929) 2,714,828
Total 9,499,112 26,319,570
Expenses Related to The Settlement of PT Great Dyke Case
On July 24, 2014, MBSS received a subponea from PT Great Dyke, related to payment request. The
amount is related to the fee on KPC Coal Handling Project in which the billing rights have been assigned
to PT Great Dyke based on Coal Handling Agreement - Payment Undertaking dated September 22, 2006.
On August 4, 2014, PT Great Dyke, filed and registered a Postponement of Debt Settlement Obligation (PKPU)
of MBSS to the Commercial Court with letter No. 39/Pdt-SUS/PKPU/2014/ PN.Niaga.JKT.PST.
On August 15, 2014, MBSS and PT Great Dyke signed a Settlement Agreement related to the payment
of subpoena which amounted to US$ 3,062,485. Subsequent to the settlement, PT Great Dyke submit
the revocation of Postponement of Debt Settlement Obligation to the Central Jakarta Commercial Court
and has received the revocation letter No. 39/PDT-SUS-PKPU/2014/ PN.NIAGA.JKT.PST dated
August 18, 2014.
Exploration Expense of IMDE
Exploration expense in 2013 pertains to the total effect of the decrease in economic value of the
exploration and evaluation assets of IMDE disclosed in Note 16, and the expected future cash out flow on
the commitment that IMDE has in respect to the block. Such commitment is recorded as part of accrued
expenses in the consolidated statement of financial position as of December 31, 2013.
41. INCOME TAX

Income tax of the Company and its subsidiaries consists of the following:
2014 2013
US$ US$
Final tax 15,845,653 10,658,961

Non final tax
Current tax 6,411,896 4,976,997
Deferred tax (3,180,296) (4,379,609)
Adjustment recognized in the current year
in relation to the current tax of prior years
corporate income tax 9,117,353 -
Total 28,194,606 11,256,349
- 87 -
Current Tax
A reconciliation between loss before tax per consolidated statements of comprehensive income and
fiscal loss is as follows:
2014 2013
US$ US$
Loss before tax per consolidated

statements of comprehensive income (2,304,323) (42,541,754)
Loss before tax of the subsidiaries (70,183,293) (71,062,302)
Loss before tax - Company (72,487,616) (113,604,056)
Temporary differences:
Difference between commercial
and fiscal depreciation 918,338 (113,884)
Total 2,725,055 1,992,120
Nondeductible expenses (nontaxable

income):
Interest expense 46,940,807 61,700,985
Salary and benefit 2,208,645 3,660,691
Entertainment and representation 293,832 537,815
Interest income subjected to final tax (280,815) (799,586)
Others 1,291,984 949,918
Total 50,454,453 66,049,823
Fiscal loss before fiscal losses carryforward (19,308,108) (45,562,113)

Fiscal losses
2009 (10,941,694) (10,941,694)
2010 (22,712,964) (22,712,964)
2011 (77,816,199) (77,816,199)
2012 (79,555,620) (79,555,620)
2013 (45,562,113) -
Accumulated fiscal losses (255,896,698) (236,588,590)
Under the taxation laws in Indonesia, the Company submits tax returns on a self-assessment basis.
Effective for fiscal year 2008, the Company may assess its fiscal losses up to accumulated 5 years after
the date when the tax becomes due.
- 88 -
Excess payment of corporate income tax is computed as follows:

2014 2013
US$ US$
Current tax expense
Company - -
Subsidiaries 6,411,896 4,976,997
Total 6,411,896 4,976,997

Less prepaid taxes
Company 131,087 15,254
Subsidiaries
Article 22 320,149 613,201
Article 23 15,799,184 10,519,900
Article 25 661,495 1,162,114
Total prepaid taxes 16,911,915 12,310,469
Excess payment of corporate income tax (10,500,019) (7,333,472)
Excess payment of corporate income tax (Note 12)

Company (131,087) (15,254)
Subsidiaries (11,313,324) (7,916,074)
Current tax payable (Note 26)
Subsidiaries 944,392 597,856
Total (10,500,019) (7,333,472)
Fiscal loss of the Company for 2013 is in accordance with the annual corporate tax returns filed with the
Tax Service Office.
Deferred Tax
The details of the subsidiaries’ deferred tax assets (liabilities) are as follows:
Deferred Tax Assets
This account represents deferred tax assets of a subsidiary on post-employment benefits amounting to
US$ 713,088 and US$ 68,568, as of December 31, 2014 and 2013, respectively.
Deferred Tax Liabilities
This account represents deferred tax liabilities of subsidiaries after deducting the deferred tax asset of
the same business entity as follows:
2014 2013
US$ US$
Subsidiaries
Accrued expenses 680,000 627,000
Trade accounts receivable 367,000 289,000
Inventories 164,000 974,000
Intangible assets (68,798,142) (77,535,577)
Property, plant and equipment (24,503,797) (18,442,124)
Investment in associates (1,258,750) (1,258,750)
Interest receivable from CEP (114,666) (625,080)
Deferred tax liabilities - net (90,721,355) (93,474,531)
- 89 -
Based on government regulation No. 51/2008, regarding income tax for income from construction
services, income directly attributable to construction services is subject to final income tax.
Management did not recognize any deferred tax assets on the Company’s unused accumulated fiscal
losses due to the significant uncertainties of the availability of taxable income in the future against which
tax losses can be utilized.
A reconciliation between the tax expense and the amount computed by applying the tax rates to profit
before tax per consolidated statements of comprehensive income is as follows:
2014 2013
US$ US$
Loss before tax - Company (72,487,616) (113,604,056)
Tax at applicable tax rate (18,121,904) (28,401,014)
Tax effect of nondeductible
expenses (nontaxable income):
Interest expense 11,735,202 15,425,246
Salary and benefit expense 552,161 915,173
Entertainment and representation 73,458 134,454
Interest income subjected to final tax (70,204) (199,896)
Others 322,996 237,479
Total 12,613,613 16,512,456
Tax effect of the unrecognized
temporary differences and
fiscal loss 5,508,291 11,888,558
Tax expense - Company - -
Tax expense - subsidiaries 28,194,606 11,256,349
Total tax expense 28,194,606 11,256,349
PT Petrosea Tbk
On November 27, 2014, Petrosea made correction and paid underpayment for Corporate Income Tax
year 2010, amounting to US$ 111,344. For this correction, Petrosea was charged with interest penalty,
amounting to US$ 95,757. The interest penalty payment was paid by Petrosea on December 4, 2014 and
charged to adjustment recognized in the current year in relation to the current tax of prior year.
On November 27, 2014, Petrosea made correction and paid underpayment for Corporate Income Tax
year 2011, amounting to US$ 201,154. For this correction, Petrosea was charged with interest penalty,
amounting to US$ 124,715. The interest penalty payment was paid by Petrosea on December 4, 2014
and charged to adjustment recognized in the current year in relation to the current tax of prior year.
In 2013, Petrosea received several underpayment tax assessment letters for income tax article 21, VAT
for Domestic and Overseas services and their related tax penalties for a total amount of
Rp 189,080,804. These were all paid by Petrosea in 2013. No objection has been filed and charged to
others (Note 40).
On March 11, 2014, Petrosea received several underpayment tax assessment letters for income tax
article 21, income tax article 23, final income tax article 23/26, income tax article 4(2), final income tax
article 15 and VAT for Domestic for year 2012 and their related tax penalties, each amounting to
Rp 1,072,274,536, Rp 1,265,764,993, Rp 2,213,292,648, Rp 87,066,263, Rp 1,825,738, Rp 11,691,202,153,
respectively. These underpayment taxes for a total amount of Rp 16,331,426,331 were all paid by
Petrosea on April 7, 2014. No objection has been filed and charged to others (Note 40).
- 90 -
42. EMPLOYEE AND MANAGEMENT STOCK OPTION PROGRAM
In February 2008, the stockholders approved the Employee and Management Stock Option Program
(EMSOP). Issuance and distribution of options related to the EMSOP program will be implemented in 3
stages. Eligible participants in the EMSOP will be announced by board of directors at the latest 14 days
prior to the issuance of options during each stage. The total option amounted to 104,142,000 or 2% of
the post-IPO issued and paid-up shares allocated to three stages: first and second stages with
31,242,500 each and third stage with 41,657,000 options.
The options are nontransferable and non-tradeable. Each of the option distributed in each stage is valid
for 5 years as of the date of its issuance. The options are subject to a one year vesting period, during
which the participant is not able to exercise the option.
The exercise price for the option will be determined based on the Listing Rule No. 1-A, as attached to the
Decree of the Board of Directors of Indonesia Stock Exchange (IDX) No. KEP-305/BEJ/07-2004 dated
July 19, 2004, which regulates that the exercise price is at least 90% of the average price of the shares
during a 25-days period prior to the Company’s announcement to IDX at the start of an exercise window.
There will be at most, two exercise period per year.
Based on Director’s decision letter No. 234/IE-BOD/VIII/2009 dated August 11, 2009 to the Director of
Indonesia Stock Exchange, the directors of the Company have agreed on the exercise price of
Rp 2,138. The fair value of the option is estimated on the grant date using the Black – Scholes Option
Pricing model. Key assumptions used in calculating the fair value of the options are as follows:
December 31,
2014 and 2013
Risk - free interest rate 9.67%
Option period 5 tahun/years
Expected stock price volatility 69.80%
Expected dividend 5.30%
Outstanding option as of December 31, 2014 and 2013 was 101,092,000.
There are no compensation expenses for employee and management stock option during 2014 and
2013.
As of December 31, 2014 and 2013, other components of equity for employee stock option amounted to
US$ 7,816,296.
43. LOSS PER SHARE
Net Loss
Below is the data used for the computation of basic and diluted earnings per share:
2014 2013
US$ US$
Loss for the year (27,514,790) (62,487,116)
- 91 -
Number of Shares
The weighted average number of shares outstanding for the computation of earnings per share are as follows:
2014 2013
US$ US$
Weighted average number of shares - for the calculation of diluted

earnings per share 5,210,192,000 5,210,192,000
Loss per share (Full amount)
Basic (0.0053) (0.0120)
Diluted (0.0053) (0.0120)
In 2014 and 2013, the Company did not compute diluted earnings per share since the potential shares from
employee and management stock option is antidilutive.
44. DERIVATIVE FINANCIAL INSTRUMENTS

TPEC utilizes foreign exchange contracts to manage exposure to foreign currency fluctuations.
On January 31, 2013, TPEC and Morgan Stanley entered into a Structured Options Transaction contract to
cover Indonesian Rupiah currency exchange rate fluctuation risks againts U.S. Dollar on a predetermined
exchange rate.
The contract which has notional amount of US$ 2 million expired on December 23, 2013. Loss on derivative
financial instrument amounted to US$ 1,263,310 in 2013, which is recorded as part of others - net (Note 40).
45. FINANCIAL INSTRUMENTS, FINANCIAL RISK AND CAPITAL RISK MANAGEMENT
a. Capital risk management

The Company and its subsidiaries manage their capital to ensure that they will be able to continue as
a going concern while maximizing the return to shareholders through the optimization of the debt and
equity balance.
The capital structure of the Company and its subsidiaries consists of debt, which includes the
borrowings disclosed in Notes 24, 28, 29 and 30, cash and cash equivalents and equity attributable to
equity holders of the parent, comprising issued capital, additional paid-in capital, retained earnings
and other components of equity as disclosed in Notes 32 and 33, respectively.
The gearing ratio as of December 31, 2014 and 2013 are as follows:
2014 2013
US$ US$
Debt
Bank loans 86,249,677 37,735,393
Long-term loans 87,026,486 100,689,784
Lease liabilities 52,451,671 99,809,343
Bonds payable - net 785,002,646 779,139,671
Total debt 1,010,730,480 1,017,374,191
Cash and cash equivalents 332,697,212 326,567,443
Net debt 678,033,268 690,806,748
Capital 692,339,288 719,920,222
Net debt to equity ratio 98% 96%
- 92 -
b. Categories and classification of financial instruments

Assets at fair Liabilities at
Loans and value through Available- amortized
receivables profit or loss for-sale cost Total
US$ US$ US$ US$ US$
December 31, 2014
Current Financial Assets

Cash and cash equivalents 332,697,212 - - - 332,697,212
Other financial assets 22,287,689 54,780,796 - - 77,068,485
Trade accounts receivable
Related parties 11,262,337 - - - 11,262,337
Third parties 159,142,372 - - - 159,142,372
Unbilled receivables 2,757,434 - - - 2,757,434
Estimated earnings in excess
of billings on contracts 93,178,949 - - - 93,178,949
Other accounts receivable -
current maturities
Related parties 3,355,077 - - - 3,355,077
Third parties 5,568,346 - - - 5,568,346
Noncurrent Financial Assets

Restricted cash 1,341,408 - - - 1,341,408
Other accounts receivable
Related parties 36,566,963 - - - 36,566,963
Third parties 1,639,265 - - - 1,639,265
Advance and other noncurrent assets
investment in shares of stock - - 1,211 - 1,211
Refundable deposits 4,137,011 - - - 4,137,011
Current Financial Liabilities

Bank loans - - - 86,249,677 86,249,677
Trade accounts payable
Related parties - - - 19,995 19,995
Third parties 104,221,448 104,221,448
Billings in excess of estimated earnings recognized - - - 33,293,257 33,293,257
Other accounts payable -
Related parties - - - 1,402,711 1,402,711
Third parties - - - 12,343,683 12,343,683
Accrued expenses - - - 86,109,922 86,109,922
Dividend payable - - - 455,000 455,000
Current maturities of
long-term debts
Long-term loans - - - 15,831,756 15,831,756
Lease liabilities - - - 31,631,848 31,631,848
Bonds payable - net - - - 17,165,617 17,165,617
Noncurrent Financial Liabilities

Long-term debts
Long-term loans - - - 71,194,730 71,194,730
Other long-term liabilities -
Third parties - - - 1,488,866 1,488,866
Total 673,934,063 54,780,796 1,211 1,250,065,362
- 93 -
Assets at fair Liabilities at
Loans and value through Available- amortized
receivables profit or loss for-sale cost Total
US$ US$ US$ US$ US$
December 31, 2013
Current Financial Assets

Cash and cash equivalents 326,567,443 - - - 326,567,443
Other financial assets 24,220,541 54,896,489 - - 79,117,030
Trade accounts receivable
Related parties 30,095,112 - - - 30,095,112
Third parties 127,413,540 - - - 127,413,540
Unbilled receivables 3,191,556 3,191,556
Estimated earnings in excess
of billings on contracts 75,000,049 - - - 75,000,049
Other accounts receivable -
current maturities
Related parties 6,888,692 - - - 6,888,692
Third parties 3,766,544 - - - 3,766,544
Non-current Financial Assets

Restricted cash 558,568 - - - 558,568
Other accounts receivable - net of
current maturities
Related parties 48,184,815 - - - 48,184,815
Third parties 2,046,507 - - - 2,046,507
Advances and other noncurrent assets
Investment in shares of stock - - 1,211 - 1,211
Refundable deposits 2,488,046 - - - 2,488,046
Current Financial Liabilities

Bank loans - - - 37,735,393 37,735,393
Related parties - - - 248,087 248,087
Third parties - - - 63,447,977 63,447,977
Billings in excess of estimated
earnings recognized - - - 33,297,895 33,297,895
Other accounts payable -
Related parties - - - 1,505,453 1,505,453
Third parties - - - 8,610,154 8,610,154
Accrued expenses - - - 118,780,781 118,780,781
Dividend payable - - - 266,149 266,149
Current maturities of
long-term debts
Long-term loans - - - 12,756,345 12,756,345
Non-current Financial Liabilities

Long-term debts
Long-term loans - - - 87,933,439 87,933,439
Other long-term liabilities -
Third parties - - - 194,779 194,779
Total 650,421,413 54,896,489 1,211 1,243,725,466
- 94 -
c. Financial risk management objectives and policies

The Company and its subsidiaries’ overall financial risk management and policies seek to ensure that
adequate financial resources are available for operation and development of their business, while
managing their exposure to foreign exchange risk, interest rate risk, credit and liquidity risks. The
Company and its subsidiaries operate within defined guidelines that are approved by Directors.
i. Foreign currency risk management
The Company and its subsidiaries’ functional currency is U.S. Dollar. Their foreign exchange
exposure arises mainly from transaction denominated in currencies other than the U.S. Dollar
which are mainly administration and operating expenses. However, this risk exposure is offset with
cash and cash equivalents, time deposits, restricted cash in banks, receivables and revenues
denominated in currencies other than the U.S. Dollar (Note 50). Therefore, the impact of foreign
currency fluctuation is considered manageable.
Details monetary assets and liabilities denominated in foreign currencies are disclosed in Note 50.
Foreign currency sensitivity analysis
The Company and its subsidiaries’ sensitivity against the relevant foreign currencies is 6% in 2014 and
7% in 2013. Had the US$ weakened/strengthened by 6% in 2014 and 7% in 2013 with all other
variables held constant, net income after tax for the periods then ended would have been
US$ 3,638,579 and US$ 5,557,532 higher/lower, respectively. 6% and 7% are the sensitivity rates
used when reporting foreign currency risk internally to key management personnel and represents
management's assessment of the reasonably possible change in foreign exchange rates. The
sensitivity analysis includes only outstanding monetary items denominated in currency other than
U.S. Dollar.
In management’s opinion, the sensitivity analysis is unrepresentative of the inherent foreign

exchange risk because the exposure at the end of the reporting period does not reflect the
exposure during the year.
ii. Interest rate risk management
The interest rate risk exposure relates to the amount of assets or liabilities which are subject to a
risk that a movement in interest rates will adversely affect the income after tax. The risk on interest
income is limited as the Company and its subsidiaries only intend to keep sufficient cash balances
to meet operational needs. On interest expenses, the optimum balance between fixed and floating
interest debt is considered upfront. The Company and its subsidiaries have a policy of obtaining
financing that would provide an appropriate mix of floating and fix interest rate. Approvals from
Directors and Commissioners must be obtained before committing the Company and its
subsidiaries to any of the instruments to manage the interest rate risk exposure.
The sensitivity analysis have been determined based on the exposure to interest rates for non
derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis is
prepared assuming the amount of the liability outstanding at the end of the reporting period was
outstanding for the whole period. A 50 basis point increase or decrease is used when reporting
interest rate risk internally to key management personnel and represents management’s
assessment of the reasonably possible change in interest rates.
If interest rates had been 50 basis points higher/lower and all other variables were held constant,
the Company and its subsidiaries’ profit for the years ended December 31, 2014 and 2013 would
increase/decrease by US$ 899,869 and US$ 1,248,375, respectively. This is mainly attributable to
the Company and its subsidiaries’ exposure to interest rates on its variable rate borrowings.
- 95 -
The Company and its subsidiaries exposure to interest rates on financial assets and financial
liabilities are detailed in the liquidity risk table.
iii. Price risks management
The Company and its subsidiaries are exposed to equity price risks arising from equity
investments. Equity investments are held for strategic rather than trading purposes. The Company
and its subsidiaries do not actively trade these investments.
The Company and its subsidiaries face commodity price risk because coal is a commodity product
traded in world coal markets. Prices for coal are generally based on international coal indices as
benchmarks, which tend to be highly cyclical and subject to significant fluctuations. As a
commodity product, global coal prices are principally dependent on the supply and demand
dynamics of coal in the world export market. The Company and its subsidiaries have not entered
into coal pricing agreements to hedge its exposure to fluctuations in the coal price but may do so
in the future. However, in order to minimize the risk, coal prices are negotiated and agreed every
year with customer.
iv. Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligation resulting in
a loss to the Company and its subsidiaries.
The Company and its subsidiaries’ credit risk is primarily attributed to its bank balances and
deposits and other short-term investments placed in banks and other financial institutions, loan
receivables from related parties, estimated earnings in excess of billing on contracts and trade and
other accounts receivable. Credit risk on cash and funds held in banks and financial institutions is
limited because the Company and its subsidiaries place such funds with credit worthy financial
institutions, while loan receivables are entered with related companies, where management
believes in the credit worthiness of such parties. Trade accounts receivable are entered with
respected and credit worthy third parties and related companies.
The carrying amount of financial assets recorded in the consolidated financial statements, net of
any allowance for losses represents the Company and its subsidiaries’ exposure to credit risk.
v. Liquidity risk management

Ultimate responsibility for liquidity risk management rests with Directors, which has built an
appropriate liquidity risk management framework for the management of the Company and its
subsidiaries short, medium and long-term funding and liquidity management requirements. The
Company and its subsidiaries manage liquidity risk by maintaining adequate reserves, banking
facilities and reserve borrowing facilities by continuously monitoring forecast and actual cash flows
and matching the maturity profiles of financial assets and liabilities.
The Company and its subsidiaries maintain sufficient funds to finance ongoing working capital
requirements, whereas the funds are placed in cash and deposit and cash dividend is also
received every year.
The following tables detail the Company and its subsidiaries’ remaining contractual maturity for
non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up
based on the undiscounted cash flows of financial liabilities based on the earliest date on which
the Company and its subsidiaries can be required to pay. The tables include both interest and
principal cash flows. To the extent that interest flows are floating rate, the undiscounted amount is
derived from interest rate curves at the end of the reporting period. The contractual maturity is
based on the earliest date on which the Company and its subsidiaries may be required to pay.
- 96 -
Weighted average Less than 1

effective interest rate month 1-3 months 3 months to 1 year 1-5 years More than 5 years Total
% US$ US$ US$ US$ US$
December 31, 2014
Non-interest bearing 179,839,931 2,620,547 55,385,541 - - 237,846,019
Variable interest rate
instruments 3.125 - 13.5 - - 139,082,491 115,389,941 - 254,472,432
Fixed interest rate
instruments 6.38 - 7.00 - - 17,165,617 - 1,004,417,555 1,021,583,172
Total 179,839,931 2,620,547 211,633,649 115,389,941 1,004,417,555 1,513,901,623
December 31, 2013

Non-interest bearing 168,936,813 12,865,080 35,620,656 8,733,947 - 226,156,496
instruments 2.71 - 13.5 - - 102,240,074 166,738,890 - 268,978,964
Fixed interest rate
instruments 5.82 - 9.85 - - 17,165,617 - 996,617,050 1,013,782,667
Total 168,936,813 12,865,080 155,026,347 175,472,837 996,617,050 1,508,918,127
The following table details the Company and its subsidiaries’ expected maturity for non-derivative
financial assets. The table has been drawn up based on the undiscounted contractual maturities of
the financial assets including interest that will be earned on those assets. The inclusion of
information on non-derivative financial assets is necessary in order to understand the Company and
its subsidiaries’ liquidity risk management as the liquidity is managed on a net asset and liability basis.
Weighted average Less than 1

effective interest rate month 1-3 months 3 months to 1 year 1-5 years More than 5 years Total
% US$ US$ US$ US$ US$
December 31, 2014
instruments 0.07 - 8.00 187,608,467 54,780,796 3,447,125 8,361,008 85,712,182 339,909,578
Fixed interest rate
instruments 0.01 - 11.00 124,446,947 - - - - 124,446,947
Total 435,249,650 83,175,173 126,881,160 14,138,495 85,712,182 745,156,660
December 31, 2013

instruments 0.04 - 4.00 202,460,592 54,933,087 496,800 10,466,725 85,712,182 354,069,386
Fixed interest rate
instruments 1.58 - 9.00 124,387,798 - - - - 124,387,798
Total 443,645,777 105,001,436 80,361,597 63,186,092 85,712,182 777,907,084
d. Fair value of financial instruments

Except as detailed in the following table, management considers that the carrying amounts of financial
assets and financial liabilities recorded in the consolidated financial statements approximate their fair
values because they have either short-term maturities or carry market interest rate:

Carrying Fair Carrying Fair
amount value amount value
US$ US$ US$ US$
Assets
Other accounts receivable 47,129,651 49,862,747 60,886,558 56,576,643
Liabilities
Long-term loans 87,026,486 86,930,319 100,689,784 100,680,426
Bonds payable - net 767,837,029 547,809,029 761,974,054 685,963,054
Total Liabilities 854,863,515 634,739,348 862,663,838 786,643,480
The fair value for the above financial instruments, except for bonds payable, was determined by
discounting estimated cash flows using discount rates for financial instruments with similar term and
maturity.
Fair value of bonds payable is based on available quoted price from stock exchange.
- 97 -
Fair value measurements recognized in the consolidated statement of financial position
Financial instrument measured at fair value subsequent to initial recognition pertains to investment in
portfolio (bonds and alternative investments), which is classified as at fair value through profit loss (Note
6). The investment in bonds falls into level 2, while alternative investments fall into level 3 of the following
fair value hierarchy:
 Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets
for identical assets or liabilities;
 Level 2 fair value measurements are those derived from inputs other than quoted prices included
within Level 1 that are observable for the asset or liability,either directly (i.e. as prices) or indirectly (i.e.
derived from prices); and
 Level 3 fair value measurements are those derived from valuation techniques that include inputs for
the asset or liability that are not based on observable market data (unobservable inputs). The fair value
of the alternative investments was based on the valuation provided by the fund administrator.
The fair value measurement of investment in portfolio (bonds and alternative investment) were derived
from quoted prices in active market for identical assets and liabilities.
46. APPROPRIATED RETAINED EARNINGS AND CASH DIVIDENDS

Based on annual shareholders’ meeting dated May 15, 2013, the stockholders approved, among other
things:
 The appropriation of earnings of Rp 10 billion or equivalent to US$ 1,028,595 for general reserve to
conform with the Company’s articles of association and Law No. 40 year 2007 regarding Limited
Liability Company; and
 The distribution of final dividends of US$ 19,000,000 or US$ 0.003647 per share.
47. NATURE OF RELATIONSHIPS AND TRANSACTIONS WITH RELATED PARTIES
Nature of Relationships
a. PT Indika Mitra Energi is the ultimate parent Company.
b. Related parties which have the same major stockholder as the Company:
 PT Power Jawa Barat
 PT Marmitria Land
 PT Indo Turbine (IT)
c. Related parties which are associates of the Company’s subsidiaries:
 PT Kideco Jaya Agung
 PT Cotrans Asia
 PT Sea Bridge Shipping
 PT Intan Resource Indonesia
 PT Cirebon Electric Power
 PT Cirebon Power Services
d. PT Santan Batubara (SB) and PT Tirta Kencana Cahaya Mandiri (TKCM) are entities wherein
Petrosea has joint control. In March 2014, Petrosea divested all its ownership of shares in TKCM
(Note 18).
e. Key management personnel includes Commissioners and Directors of the Company.
The Company and its subsidiaries’ policy as regards to terms and conditions of transactions with related
parties are made as at conditions as those done with third parties.
- 98 -
Transactions with Related Parties

In the normal course of business, the Company and its subsidiaries entered into certain transactions with
related parties including, among others, the following:
a. Total remuneration of commissioners and directors of the Company for the years ended December
31, 2014 and 2013 are as follows:

2014 2013
US$ US$
Commissioners
Short-term benefit 976,768 1,367,881
Directors
Short-term benefit 1,817,620 2,637,613
Total 2,794,388 4,005,494
b. Petrosea provided overburden removal and coal production services to PT Kideco Jaya Agung and
PT Santan Batubara.
TPE provided construction service to PT Indo Turbine.
MBSS also provided transportation services and other services to PT Kideco Jaya Agung and
PT Cotrans Asia. At reporting date, the outstanding receivables from such transaction were recorded as
trade accounts receivable from related parties (Note 7).
Trade Accounts Receivable

Amount
2014 2013
US$ US$
PT Cotrans Asia 775,321 913,000
Others (each below US$ 100,000) - 207,383
Total 12,562,337 30,095,112
Allowance for impairment loss (1,300,000) -
Net 11,262,337 30,095,112
Percentage to total assets

2014 2013
PT Santan Batubara 0.43% 0.43%

PT Kideco Jaya Agung 0.08% 0.82%
PT Cotrans Asia 0.03% 0.04%
PT Indo Turbine 0.01% -
Others (each below US$ 100,000) - 0.01%
Total 0.55% 1.30%
Allowance for impairment loss (0.06%) (0.00%)
Net 0.49% 1.30%
- 99 -
Unbilled Receivables
Amount
2014 2013
US$ US$
PT Kideco Jaya Agung 101,680 -
Total 227,242 -

2014 2013

PT Kideco Jaya Agung 0.00% -
Total 0.01% -
Contracts and Service Revenues

Amount
2014 2013
US$ US$
PT Cotrans Asia 11,339,394 10,104,907
Total 124,486,651 175,122,324
Percentage to total revenues

2014 2013
PT Kideco Jaya Agung 9.82% 10.96%

PT Cotrans Asia 1.02% 1.17%
Total 11.22% 20.28%
c. Details of the transactions purchases and trade payable and balances with related parties are as follows:
Trade Accounts Payable
Amount
2014 2013
US$ US$
Others - 248,087
Total 19,995 248,087
- 100 -
Percentage to total liabilities

2014 2013

Others - 0.02%
Total 0.00% 0.02%
Other Accounts Payable
Amount
2014 2013
US$ US$
PT Sea Bridge Shipping 86,657 189,399
Total 1,402,711 1,505,453

2014 2013

PT Sea Bridge Shipping 0.01% 0.01%
Total 0.10% 0.11%
Cost of Contracts and Services

Amount
2014 2013
US$ US$
PT Indo Turbine 3,737,817 1,825,028
Percentage to total cost

of contracts and services
2014 2013
PT Indo Turbine 0.39% 0.27%
d. The Company and its subsidiaries entered into other transactions. Details of related parties
transactions and balances are as follows:
- 101 -
Other Accounts Receivable from Related Parties

The Company and its subsidiaries provided loans to related parties and also made advance
payment of expenses for related parties, as follows:
Amount
2014 2013
US$ US$

Employee loans 3,341,906 2,886,784
PT Power Jawa Barat 2,035,681 2,694,429
PT Santan Batubara - 153,387
Others (each below US$ 100,000) 192,577 355,349
Total 41,957,721 57,767,936
Less current maturities (3,355,077) (6,888,692)
Non-current maturities 38,602,644 50,879,244

Less allowance for impairment losses (2,035,681) (2,694,429)
Other accounts receivable from related parties - net 36,566,963 48,184,815

2014 2013
PT Cirebon Electric Power 1.17% 1.58%

Employee loans 0.15% 0.12%
PT Power Jawa Barat 0.12% 0.12%
PT Santan Batubara - 0.01%
Others 0.01% 0.02%
Total 1.87% 2.50%
Less current maturities (0.15%) (0.30%)
Non-current maturities 1.72% 2.20%

Less allowance for impairment losses (0.12%) (0.12%)
Other accounts receivable from related parties - net 1.60% 2.08%
PT Cirebon Electric Power (CEP)
III and IPI entered into several Shareholder Loan Agreements with PT Cirebon Electric Power (CEP)
wherein III and IPI together with the other shareholders of CEP agreed to finance and provide CEP,
from time to time, up to 50% of pro-rata contributions for the development and other related costs of
CEP’s coal fired power plant project in the form of one or more shareholder loans.
- 102 -
Details of the agreements and receivables outstanding as of reporting dates are as follows:

2014 2013
US$ US$
• Shareholder Loan Agreement
dated October 6, 2008
IPI 5,475,000 5,475,000
III 1,825,000 1,825,000
dated October 27, 2008
IPI 3,337,500 3,337,500
III 1,112,500 1,112,500
dated November 28, 2008
IPI 1,350,000 1,350,000
III 450,000 450,000
dated December 22, 2008
IPI 2,835,000 2,835,000
III 945,000 945,000
dated February 6, 2009
IPI 2,400,000 2,400,000
III 800,000 800,000
dated April 24, 2009
IPI 2,634,000 2,634,000
III 878,000 878,000
dated June 15, 2009
IPI 1,485,000 1,485,000
III 495,000 495,000
dated July 16, 2009
IPI 120,000 120,000
III 40,000 40,000
• Accumulated interest receivable
IPI 451,229 7,601,781
III 151,828 2,523,784
• Bridge Loan
dated January 7, 2010
IPI - 64,722
• Bridge Loan
dated February 24, 2010
IPI - 54,686
III - 26,449
• Accumulated interest receivable on Bridge Loan
IPI - 79,905
III - 22,160
Total 26,785,057 36,555,487
- 103 -
Shareholder Loan
Each of the above shareholder loans bears interest rate per annum at 11% and has a final maturity
date at 20 years since the date of each loan agreements. Based on those agreements, CEP
irrevocably promises to repay the entire outstanding principal amount of the loan together with all
interest accrued thereon, on the final maturity date.
On or prior to the final maturity date, the shareholders of CEP may resolve in accordance with the
charter documents of CEP to effect at final maturity date, the conversion of the outstanding balance
of the shareholder loans into shares of CEP. In the event that such resolution has been adopted by
the shareholders, CEP shall take all necessary corporate actions to convert the outstanding balance
of loan into the common shares of CEP so that after such conversion, CEP’s shareholder will
continue to maintain its pro rata equity ownership interest in CEP equal to the CEP shareholders’
percentage shareholding in CEP at the date when those agreement were made. Shares issued to
the CEP’s shareholders in connection with this conversion shall be deemed to be part of the CEP’s
shareholders shares.
In September 2014, CEP settled part of its interest receivable on shareholder loan of
US$ 12,213,957, net of tax.
Bridge Loan
On February 24, 2010, III entered into a Bridge Loan Agreement with CEP wherein III agreed to
grant a working capital loan to CEP amounting to Rp 24,212,656 thousand or equivalent to
US$ 2,593,750.
On April 5, 2010, CEP settled the entire amount of the Bridge Loan principal and a portion of the
interest receivables amounting to US$ 2,610,890. Remaining unpaid interest receivable amounting
to US$ 26,449 was treated as new loan principal, bearing an interest rate of 22% per annum.
Interest receivable on the new loan principal outstanding as of December 31, 2014 and 2013
amounted to nil and US$ 22,160, respectively.
On January 7, 2010, IPI entered into a Bridge Loan Agreement with CEP wherein IPI agreed to
provide CEP with an advance funds amounting to US$ 2,300,000, which is subject to an interest of
22% per annum and to be repaid on the date of the initial drawdown of loans under the financing
documents relating to the funding of the 1x660 MW coal fired power plant project of CEP to be
entered into by CEP, the CEP shareholders and other parties named therein.
On February 24, 2010, IPI together with the other Lenders, entered into another Bridge Loan
Agreement with CEP wherein IPI agreed to provide CEP with an advance funds up to an amount not
exceeding its pro-rata share of the maximum Bridge Loan Commitment amounting to
US$ 8,612,500. IPI’s pro-rata share in this Bridge Loan Agreement is 63.64%
(US$ 5,481,250). The advance fund is subject to an interest of 11% per annum and to be repaid on
the date of the initial drawdown of loans under the financing documents relating to the funding of the
1x660 MW coal fired power plant project of CEP to be entered into by CEP, the CEP shareholders
and other parties named therein.
On April 29, 2010, CEP settled all the principal of the bridge loan and a portion of the interest
receivables amounting to US$ 7,855,157. Remaining unpaid interest receivable amounting to
US$ 119,408 was treated as new loan principal, bearing an interest rate of 22% per annum. Interest
receivable on the new loan principal outstanding amounted to nil as of December 31, 2014 and
US$ 79,905 as of December 31, 2013.
In September 2014, CEP settled all the outstanding Bridge Loan receivables including interest of
US$ 289,543, net of tax.
- 104 -
PT Sea Bridge Shipping
Receivable from PT Sea Bridge Shipping, an associate, represents working capital loan of US$ 11
million and US$ 15.1 million as of December 31, 2014 and December 31, 2013, respectively, with
interest at 9% per annum and paid quarterly.
For loans totaling US$ 22,080,000, principal loans will be paid in 16 quarterly installments starting on
March 10, 2010 and June 10, 2010. Based on amendment dated March 10, 2010, principal loan
payment was changed into March 10, 2011 and June 10, 2011. In April 2010, TPEC granted
additional working capital loan of US$ 6,440,000 which bears the same interest rate as the previous
loan. The principal will be fully paid on March 10, 2016.
The loans granted to SBS is proportionate with the percentage of ownership of each shareholder of
SBS.
The carrying amount of other accounts receivable from SBS as of December 31, 2014 and
December 31, 2013 based on maturity as follows:

2014 2013
US$ US$
One year 3,162,500 5,520,000
Two years 6,440,000 3,162,500
Three years - 6,440,000
Total 9,602,500 15,122,500
Employee Loans
Employee loans represent receivables arising from the commencement of “Employee/ Management
Stock Allocation” Program (ESA). Based on the extraordinary general meeting of shareholders, the
minutes of which were notarized by deed No. 115 dated February 25, 2008 of Sutjipto, SH, notary in
Jakarta, the shareholders approved the ESA program plan, wherein number of shares offered in this
program were at the maximum of 10% of the new shares offered in the Initial Public Offering, or a
maximum of 83,314,200 shares, at the offering price.
The loans have term of 36 months, with a grace period of 6 months, which was extended several
times, most recently until December 2010. After the grace period, the loans start to bear interest rate
per annum at 5% and are repaid through monthly installments, deducted from salary or proceeds
from sale of shares. Shares in ESA program can be sold in one-month period after the effective
date.
PT Power Jawa Barat (PJB)
PJB is a project for coal-fired power plant located in Bojonegoro, Banten (formerly West Java)
owned by related party of one Commissioner of the Company, working together with third parties to
build such power plant prior to the economic crisis in 1998.
Other accounts receivable from PJB mainly represents receivable arising from expenses of PJB
paid in advance by the Company.
In 2009, management decided to provide full provision on its accounts receivable from PJB after
considering the condition of the project which has no significant progress.
- 105 -
Interest Income on Loans to Related Parties
Amount
2014 2013
US$ US$

Total 4,342,767 3,648,698
Percentage to total
investment income
2014 2013
PT Cirebon Electric Power 29.91% 22.52%

Total 39.99% 41.03%
Advance Received from a Related Party
PT Intan Resource Indonesia granted an advance to CIP in relation with the coal marketing agreement
(Note 49f).
Amount
2014 2013
US$ US$
PT Intan Resource Indonesia 1,729,954 1,729,954

2014 2013
PT Intan Resource Indonesia 0.13% 0.13%
Office Space Rental
The Company and several subsidiaries rent office building from related parties.
Amount
2014 2013
US$ US$
PT Marmitria Land 979,237 1,533,303
- 106 -
Percentage to total general

and administrative expenses
2014 2013
PT Marmitria Land 0.75% 0.99%
48. SEGMENT INFORMATION
PSAK 5 (Revised 2009) requires operating segments to be identified on the basis of internal reports on
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 performance.
For management reporting purposes, the Company and its subsidiaries are principally organized based
on energy resources, energy services and energy infrastructure.
The following summary describes the operations in each of the reportable segments:
Energy resources
Kideco is the Company’s core asset in the energy resources sector and is the third largest producer of
coal in Indonesia based on production volume. In this segment, the Company is also supported by
MUTU, MEA and PT Santan Batubara.
Energy services
The Company’s two core businesses in the energy services sector are Tripatra and Petrosea. Through
Tripatra, the Company provides engineering, procurement and construction services, operations and
maintenance and logistic services. Through Petrosea, the Company provides engineering, construction
and contract mining with total pit-to-port capability.
Energy infrastructure
The 660 megawatt power generation plant in Cirebon, West Java investment in its energy infrastructure
business pillar. MBSS also contributed in this segment.
On December 31, 2014, the Company has remapped its segment reporting, wherein PT Santan
Batubara, which was previously classified as energy services segment in accordance with company
structure owned by Petrosea, is now classified as energy resources segment. Further, PT POSB
Infrastructure Kalimantan, PT Sea Bridge Shipping and PT Cotrans Asia, which were previously
classified as energy services segment in accordance with company structure owned by Petrosea and
Tripatra respectively, are now classified as energy infrastructure segment.
Segment reporting as of December 31, 2013 has been restated in accordance to the above reporting
structure.
- 107 -
December 31, 2014

US$
Energy Energy Energy
Services Resources Infrastructure Elimination Consolidated
Revenues
External Sales 765,342,316 143,361,616 200,804,379 - 1,109,508,311
Inter-segment Sales 16,119,885 - 1,192,980 (17,312,865) -
Total Revenues 781,462,201 143,361,616 201,997,359 (17,312,865) 1,109,508,311
Segment result 105,764,001 3,806,397 49,567,682 1,897,534 161,035,614
Equity in net profit of associates and

jointly-controlled entities 76,211 60,063,530 13,343,015 - 73,482,756
Investment income 4,258,212 59,227,784 5,545,866 (58,173,022) 10,858,840
General and administrative expenses (40,789,139) (75,109,606) (18,704,134) 2,453,272 (132,149,607)
Finance cost (13,010,583) (109,784,553) (5,018,531) 58,379,074 (69,434,593)
Amortization and impairment on intangible assets (1,242,095) (16,486,401) (18,867,706) (2,019) (36,598,221)
Others - net (5,064,793) 2,951,107 (2,472,452) (4,912,974) (9,499,112)
Loss before Tax 49,991,814 (75,331,742) 23,393,740 (358,135) (2,304,323)
Tax Expense (33,135,388) 3,851,216 1,957,542 (867,976) (28,194,606)
Loss for the period (30,498,929)
Atributable to :
Owners of the company (27,514,790)
Non-controlling interest (2,984,139)
Total Consolidated Loss (30,498,929)
Segment Assets 768,755,968 3,063,410,510 566,977,275 (2,108,791,461) 2,290,352,292
Segment Liabilities 218,590,237 914,469,403 85,850,111 (211,108,613) 1,007,801,138

Unallocated Liabilities 255,235,841 820,280,423 49,862,302 (755,330,262) 370,048,304
Total Consolidated Liabilities 473,826,078 1,734,749,826 135,712,413 (966,438,875) 1,377,849,442
Other information
Addition to property, plant and equipment
and intangible assets 73,482,789
Depreciation expense 101,764,104
Amortization on bond issuance cost 5,862,975
Amortization and impairment on

intangible assets 36,598,221
- 108 -
December 31, 2013

US$
Energy Energy Energy
Services Resources Infrastructure Elimination Consolidated
Revenues
External Sales 663,400,825 2,931,898 197,061,469 - 863,394,192
Inter-segement Sales 13,963,219 - - (13,963,219) -
Total Revenues 677,364,044 2,931,898 197,061,469 (13,963,219) 863,394,192
Segment result 128,456,141 268,732 64,710,785 (29,071) 193,406,587
Equity in net profit of associates and

jointly-controlled entities 273,127 86,391,050 15,901,016 (53,727) 102,511,466
Investment income 3,978,002 76,760,565 2,697,431 (74,543,243) 8,892,755
General and administrative expenses (48,340,848) (94,145,569) (11,864,001) (225,775) (154,576,193)
Finance cost (27,168,774) (156,383,698) (6,258,728) 75,699,137 (114,112,063)
Amortization and impairment on intangible assets (1,767,800) (31,712,209) (18,864,727) - (52,344,736)
Others - net (6,963,639) (11,125,923) (4,579,857) (3,650,151) (26,319,570)
Loss before Tax 48,466,209 (129,947,052) 41,741,919 (2,802,830) (42,541,754)
Tax Expense (20,190,035) 6,734,603 1,711,675 487,408 (11,256,349)
Loss for the period (53,798,103)
Atributeable to :
Owners of the company (62,487,116)
Non-controlling interest 8,689,013
Total Consolidated Loss (53,798,103)
Segment Assets 777,160,347 2,975,770,221 583,001,925 (2,019,609,177) 2,316,323,316
Segment Liabilities 139,688,385 800,304,246 98,018,546 (20,636,986) 1,017,374,191

Unallocated Liabilities 349,143,800 835,917,801 52,891,820 (888,875,934) 349,077,487
Total Consolidated Liabilities 488,832,185 1,636,222,047 150,910,366 (909,512,920) 1,366,451,678
Other information
Addition to property, plant and equipment
and intangible assets 61,457,813
Depreciation expense 97,542,888
Amortization on bond issuance cost 13,632,835
Amortization and impairment on

intangible assets 52,344,736
Geographic Segment
The Company and its domestic subsidiaries mainly operate in Jakarta. Subsidiaries outside of Jakarta
are mainly involved in investment and financing activities. Total assets and revenues from these
subsidiaries are not material as compared to the consolidated total assets and consolidated total
revenues, respectively. Therefore, the Company and its subsidiaries did not present information on
geographical area segments.
- 109 -
49. COMMITMENTS AND CONTINGENCIES
a. On July 18, 2012, the Company obtained a Revolving Working Capital Credit facility (KMK) from
Bank Mandiri, with maximum amount of US$ 75,000,000, which should be applied towards
its working capital and corporate purposes. The credit facility bears interest rate at 4.24% p.a.
above LIBOR, payable every 3 months. On July 31, 2013, the Company and Bank Mandiri agreed to
amend certain terms and conditions in the facility, among others are the extension of the credit
facility up to July 17, 2014 and amendment of facility as a Revolving Uncommited facility (Note 24).
On July 25, 2014, the above facility was further extended for another one year up to July 17, 2015.
b. The lenders, pursuant to the Common Agreement and Facility Agreement amongst CEP and certain
parties defined as lenders, require the Company as a “sponsor” and III and IPI as shareholders of
CEP to enter into Equity Support Agreement dated March 8, 2010 with Mizuho Corporate Bank, Ltd.,
as offshore security and administrative agent, and agree on the following:
1. Sponsor agrees to guarantee payment of and, shall cause to contribute to CEP 20% of any
unfunded base equity required to be contributed to CEP, as specified in the Common Agreement.
2. Sponsor agrees to guarantee payment of and, shall cause to contribute to CEP 20% of any
unfunded contingent equity required to be contributed to CEP, as specified in the Common
Agreement.
3. Sponsor agrees to issue stand by letter of credit to secure payment in the event of PLN force
majeure in the amount specified in the agreement.
4. Sponsor agrees to guarantee payment of tax support amount, as defined in the agreement.
The agreement contains certain covenants that Company is required to fulfill.
Based on Share Charge Agreement dated March 12, 2010, the Company agreed to use the following
as collateral:
1. All of the Company’s share in Indika Power Investment Pte. Ltd (IPI).
2. All dividends, interest and other money paid or payable in respect of all of the Company’s shares
in IPI and all other rights, benefits and proceeds in respect of or derived from all Company’s
shares in IPI, in favour of Mizuho Corporate Bank, Ltd, as offshore security agent, all its present
and future rights, titles and interest in and to the above collateral, and in each case for the
payment and discharge of loan of PT Cirebon Electric Power from Japan Bank for International
Cooperation including all cost and expenses to indemnify the offshore security agent.
c. On March 19, 2010, the Company obtained Standby Letter of Credit (SBLC) facility from
PT ANZ Panin Bank, which has been extended several times, most recently by agreement dated
December 2, 2014 effective from September 30, 2014. Maximum aggregate principal of this facility,
at any time, amounts to US$ 9,900,000, comprising of the following:
1. Facility I
Sub-limit and currency : US$ 2,700,000

Tenor : Maximum 12 Months
Availability period : September 30, 2014 until September 30, 2015
Issuance Fee : 1.35% per annum plus correspondence ANZ’s fee 0.25% per annum
with ANZ Singapore
- 110 -
Purpose
To cover the risk of insufficient payment from PT Perusahaan Listrik Negara (Persero) (PLN), that
may result in CEP unable to commission the power plant.
2. Facility II
Sub-limit and currency : US$ 7,200,000

Tenor : Maximum 13 months
Availability period : September 30, 2014 until September 30, 2015
Issuance Fee : 1.35% per annum plus correspondence ANZ’s fee 0.25% per
annum with ANZ Singapore
Purpose
To ensure the Company’s pro rata share of the Debt Service Reserve Requirement under CEP’s
US$ 595,000,000 project financing facility.
The agreement covering the above facility contain certain covenants, which the Company is required
to fulfill, including provision regarding events of default.
As of December 31, 2014 and 2013 the amount of facility utilized were US$ 9,485,449 and
US$ 26,149,049, respectively.
d. On November 15, 2013, Company and IIC obtained credit facility from Citibank N.A. with combined
limit amounting to US$ 25 million. This facility was amended on December 19, 2013 and therefore
such combined facility limit shall be as follows:
1. Short Term Loan
Maximum facility : US$ 25 million

Interest rate : 2.5% p.a. above LIBOR
2. Trust Receipt

3. Trade Payables Financing

4. Trade Receivables Financing

As of December 31, 2014, the outstanding balance used by the Company and IIC under this facility
were US$ 10,000,000 and US$ 10,000,000, respectively (Note 24).
- 111 -
e. On March 26, 2014, the Company obtained an uncommitted short-term loan facility from
Standard Chartered Bank, with maximum credit limit of US$ 50,000,000, which should be applied
towards its working capital. The facility bears interest rate at 3.5% p.a. above LIBOR. This interest
rate is to be confirmed by the Company and the bank 3 business days before drawdown date. The
availability period of this facility is 6 months after the signing of the facility agreement. Final maturity
date is one year starting from the signing date of the facility agreement.
The agreement contains certain covenants, which the Company is required to fulfill, including
provision regarding events of default.
As of December 31, 2014, the Company has not utilized the facility.
f. On March 19, 2009, CIP entered into Coal Marketing Rights Agreement (CMRA) with
PT Sindo Resources (SR) and PT Melawi Rimba Minerals (MRM), wherein SR and MRM agreed to
grant CIP exclusive coal marketing rights (as both an agent and a distributor of SR and MRM) to sell
and supply the coal, which are to be developed and produced by SR and MRM in the Mining
Licences (IUP) Areas to end-users in the Republic of Indonesia. As compensation for acting as an
agent for SR and MRM, CIP shall receive commission from SR and MRM, which is to be separately
agreed in Coal Agency Agreement.
This agreement shall be valid so long as the IUP on Exploitation of Coal owned by SR and MRM is still
valid and effective. The agreement shall be terminated provided that the mutual prior written consent is
made between the parties.
On the same date, CIP also entered into Assignment Agreement for CMRA with PT Intan Resource
Indonesia (IRI), wherein CIP agrees to assign and transfer all of its rights, obligations and liabilities
under the CMRA to IRI. Based on the agreement, IRI shall pay an amount of
US$ 864,977 for each CMRA entered with SR and MRM to CIP in return for the assignment. For the
faithful fulfillment and performance guarantee under the CMRA, both parties entered into a Pledge of
Shares Agreement dated March 25, 2009, wherein CIP agreed to pledge all shares presently held by
CIP in SR and MRM and any additional shares in SR and MRM which CIP may acquire for so long as
all or any part of the obligations of CIP to IRI under the Assignment Agreement remains outstanding,
including any shares taken up by CIP pursuant to an increase of the authorized capital of SR and
MRM, and all such additional shares shall automatically be pledged to IRI. CIP shall give written
notice to IRI of any such acquisition of additional shares. Based on the agreement, CIP grants to IRI
the right to receive and order SR and MRM to pay all dividends payable on the pledged shares.
This agreement shall remain in full force and effect until all CIP’s obligation under the Assignment
Agreement owing to IRI is performed in full or the Assignment Agreement for CMRA is terminated.
As the result of the Assignment Agreement for CMRA entered between CIP and IRI as discussed
above, on March 19, 2009, IRI entered into Coal Marketing Rights Agreement with SR and MRM with
the same content and terms with the one entered amongst CIP, SR and MRM.
g. On July 11 and October 20, 2008, IIC obtained short-term loan facilities from DBS Bank Ltd.,
amounting to US$ 50,000,000 and US$ 9,090,969, respectively, which are secured by IIC’s time
deposits in the same bank. These facilities matured six years after the first drawdown date and have
been extended for another five years.
As of December 31, 2014, IIC has not utilized the facility.
- 112 -
h. TPEC has construction work and construction consultant services commitments with several
customers as follows:
Period expected
No. Project Contract value Owner Start of project End of project
1 EPC-1: Production Processing US$ 746,300,000 ExxonMobil Cepu Ltd August 5, 2011 February 5, 2015 *)
Facilities
2 Engineering, Procurement, and US$ 519,921,000 JOB Pertamina - Medco E&P September 17, 2012 December 14, 2014 *)
Construction Tomori Sulawesi
3 Provision & Installation of New Built US$ 1,114,429,553 Eni Muara Bakau B.V. February 28, 2014 January 28, 2017
Barge Floating Production Unit
(Hull, Topside and Mooring System)
*) in the process of extension.
i. On December 5, 2014, TPEC obtained the following credit facilities from PT Bank Mandiri (Persero) Tbk:
 Working Capital Loan

Interest rate per annum : 6%
Structuring fee : US$ 50,000
 Non-cash loan facility

Type : Bank guarantee, Letter of credit, Supply chain financing and
trust receipt
Structuring fee : US$ 26,250
Provision for bank guarantee : 0.5% - 1.25%
Provision for Letter of Credit : 0.125% flat
The above credit facilities are due on November 5, 2015 and secured by trade accounts receivable
project claim in the amount of Rp 197.22 billion and US$ 181.25 million, time deposit placed at the
same bank amounting to US$ 2.15 million, and land and buildings with HGB No. 1545 and 1576.
The unused credit facilities at the reporting date were amounted to US$ 25 million.
TPEC is restricted to, among other things: without written approval from bank transfer assets used
as collateral, obtain new credit facilities from other financial institution except in the normal course of
business, act as guarantor to other parties, and transfer its rights and obligations in this loan
agreement to another party without written consent from the bank. TPEC is also required to maintain
financial ratios as stipulated in the agreement.
The above facilities are also able to be used by TPE.
j. On January 9, 2013, TPEC obtained the following credit facilities from The Hongkong and Shanghai
Banking Corporation Limited (HSBC):
1. Combined limit amounting to US$ 50 million with sub limits under this facility are:
a. Documentary Credit Facility
Commission : 0.25% per quarter, with minimum amount of US$ 50
b. Deferred Payment Credit Facility
Commission : 0.25% per quarter, with minimum amount of US$ 50
- 113 -
c. Supplier Financing
Interest : 6.5% per annum
d. Gurantee Facility
i. Tender bonds
Commission : 0.75% per annum, with minimum amount of US$ 50
ii. Performance bonds
iii. Advance payment bonds
2. Treasury facility with expose risk limit amounting to US$ 5 million
The current extension of the facility documents are being reviewed by HSBC.
TPEC shall maintain its current ratio at a minimum of 1.0 time and gearing ratio at a maximum of 1.0
time. TPEC shall also maintain a minimum cash balance of US$ 5 million at the end of the fiscal
year.
k. TPEC obtained the following credit facilities from Standard Chartered Bank (SCB):
1) Bond and Guarantee Facility:
Commissions : 0.20% per equal maximum tenor up to 45 months.
Bond and Guarantee Facility is consist of:
a) Import Letter of Credit Facility
Commissions : 0.20% per quarter
b) Import Loans Facility
Interest : 3% per year
c) Bill Discount Against Buyer Risk Facility
Interest : 3% per year
d) Import Invoice Financing Facility
Bunga : 3% per year, above bank’s cost of fund
e) Export Invoice Financing Facility
Interest : 3% per year, above bank’s cost of fund
f) Shipping Guarantees Facility
Fee : US$ 25 per item
- 114 -
The import letter of credit facilities, import loan facility, bill discount against buyer risk facility,
import invoice financing facility, export invoice financing facility and shipping guarantees facility
are treated as a sub-limit of the bond and guarantee facility, therefore, the combined outstanding
shall not exceed US$ 20 million.
The bank required a cash margin deposit of 10% of facility of import letter of credit that was used.
2) Foreign Exchange Facility
Represent foreign exchange product for hedging purposes.

No credit facilities used at the reporting date.
The above credit facilities were due on February 28, 2015 and currently in extention process.
TPEC shall maintain its current ratio at a minimum of 1.0 time and debt to equity ratio at a maximum
of 1.0 time.
In addition, the above facilities are also available to TPE up to the maximum sub-limit of US$ 10
million for Bond and Guarantee facility and maximum US$ 2 million for foreign exchange facility.
l. TPEC entered into several guarantee agreements with several financial institutions in relation to the
performance and bank guarantees issued by those financial institutions for its projects, as follows:
Date Counter parties Project owner Amount Valid date
April 28, 2014 PT Bank Mandiri (Persero) Tbk ExxonMobil Cepu Ltd US$ 86,296,816 November 5, 2015
September 26, 2012 PT Bank Mandiri (Persero) Tbk JOB Pertamina-Medco E&P US$ 25,996,050 February 17, 2016
Tomori Sulawesi
February 28, 2014 PT Bank Mandiri (Persero) Tbk Eni Muara Bakau B.V. US$ 32,962,324 March 31, 2017
February 28, 2014 Hongkong and Shanghai Banking Eni Muara Bakau B.V. US$ 29,434,146 August 31, 2017
Corporation Limited
October 29, 2014 PT Bank Mandiri (Persero) Tbk BP Berau Ltd. US$ 1,547,266 March 3, 2017
m. TPE has consultant services commitment for construction work as follows:
Project period
No. Project Contract value Owner Start of project End of project
1 Offshore and Subsea Engineering $ 14,765,161 BUT Conoco Phillips Indonesia July 16, 2012 July 15, 2015
Inc. Ltd.
2 Front End Engineering Design for Rp 74,350,358,670 PT Chevron Pacific Indonesia December 3, 2012 December 3, 2017
Aset Integrity Program
3 Technical Service Contract for $ 21,835,778 PT Pertamina Hulu Energi ONWJ March 1, 2013 February 28, 2016
Project Engineering & CMS
- 115 -
TPE entered into several guarantee agreements with several financial institutions in relation to the
performance bonds or bank guarantees, issued by those financial institutions for TPE’s projects, as
follows:
Date Counter parties Owner Amount Valid date

US$
July 16, 2012 PT Bank Mandiri (Persero) Tbk BUT Conoco Phillips Indonesia Inc. Ltd. 738,259 October 15, 2015
December 3, 2012 PT Bank Mandiri (Persero) Tbk PT Chevron Pacific Indonesia 304,990 March 2, 2018
March 1, 2013 PT Bank Mandiri (Persero) Tbk PT Pertamina Hulu Energi ONWJ 1,091,789 April 30, 2016
November 18, 2014 PT Bank Mandiri (Persero) Tbk PT Pertamina EP 24,116 May 28, 2015
November 25, 2014 PT Bank Mandiri (Persero) Tbk PT Pertamina Hulu Energi ONWJ 125,000 May 28, 2015
n. On January 1, 2005, Petrosea entered into an Overburden Subcontract agreement with

PT Gunung Bayan Pratama Coal (GBP) at its mine sites in Muara Pahu districts, East Kalimantan.
Under this subcontract, Petrosea provides labour, equipment and facilities for land clearing,
overburden and top soil removal, and overburden hauling. Petrosea is also required to meet certain
minimum production requirements for these activities.
On October 29, 2008, Petrosea entered into a new agreement for a new scope of similar overburden
work with GBP for US$ 315 million. This agreement will be effective for five years starting January 1,
2009, upon completion of the previous agreement.
On March 26, 2012, the agreement was amended, which include among others, to extend the mining
service contract untill December 31, 2017 and to increase the overburden production volume to 55
million BCM per year starting from 2012 untill 2017.
In October 2012, due to the low coal prices, the target overburden production volume was decreased
to 36 million BCM per year starting from 2013 until the coal prices improve.
In July 2014, GBP request to Petrosea to reduce the number of fleet operating on site for July to
December 2014.
On November 5, 2014, GBP issued a letter to Petrosea regarding limited availability of economic
reserves in the area in which Petrosea is operating that will be exhausted in end of 2014 which make
it difficult to continue the operations and GBP informed that it will be unable to comply with the
volumes under the agreement. Further both parties are committed to continue the discussion to
achieve an amicable settlement.
On March 3, 2015, Petrosea has received notification from GBP to early terminate the Overburden
Removal Contract between Petrosea and GBP (“OB Contract”) prior to the expiration of the OB
Contract which is going to be expired in December 31, 2017.
o. As of December 31, 2014 and 2013, Petrosea had various outstanding used bank guarantee facilities
for the Company’s operations amounting to US$ 4,926 thousand and US$ 7,925 thousand,
respectively. As of December 31, 2014, the bank guarantess were outstanding to Total E&P
Indonesie, Anadarko Indonesia Nunukan Company, Eni Muara Bakau B.V., Chevron Indonesia
Company, Salamander Energy Pte Ltd., Niko Resources Ltd., Krisenergy Kutaei B.V., PT Indonesia
Bulk Terminal, Directorate General of Customs & Excise, Pearloil (Sebuku) Limited, and PT Saka
Indonesia Sesulu. As of December 31, 2013, the bank guarantees were outstanding to Total E&P
Indonesie, Immersive Technology Pty Ltd., PT Weda Bay Nickel, Anadarko Indonesia Nunukan
Company, Eni Muara Bakau B.V., Chevron Indonesia Company, Salamander Energy Pte Ltd., Niko
Resources Ltd., Krisenergy Kutaei B.V., PT Indonesia Bulk Terminal, Chevron Pacific Indonesia, and
Pearloil (Sebuku) Limited.
- 116 -
p. On January 16, 2009, Petrosea entered into Overburden Removal and Coal Recovery and Loading of
Santan - Separi Mine Site East Kalimantan agreement amounting to US$ 250 million with PT Santan
Batubara (SB), a 50/50 joint venture between Petrosea and PT Harum Energy Tbk. The scope
encompasses overburden removal and coal mining at Santan - Separi block in East Kalimantan. This
agreement is effective for five years starting on March 6, 2009.
On February 16, 2011, the contract was amended under Addendum No. 1 which increased the total
quantities to be mined from 99 million BCM of overburden and 9.5 million tons of coal over the initial
contract period of 5 years to 155 million BCM of overburden and 14.8 million tons of coal over 7 years
period.
On March 2, 2012, the agreement was amended, which include among others, the Contract
Expansion and Extension of Mining Services at Separi and Uskap mining area, in which Petrosea will
also provide mining service for Uskap pit.
Petrosea and SB entered into Rental Agreement of Heavy Equipment at Separi and Uskap site, East
Kalimantan. Commenced date for this agreement on September 1, 2012.
Starting March 2014, the overburden removal activity at Santan site has been suspended.
SB is evaluating alternatives for conserving maximum value in SB, as the coal quality in this deposit is
high. The activity will be recommenced once coal prices improve.
Based on the Expanded and Restated Contract for Mining dated March 2, 2012 between Petrosea
and Santan Batubara (SB), Petrosea is to perform certain works to undertake the overburden
removal at the coal mine owned by SB in Kalimantan. In the event of any delay, disruption or
stoppage to any part of or the entire works caused by SB or a third party, including, but not limited to
the failure to compensate land owners in a timely or if equipment productivities are negatively affected
due to issues beyond Petrosea’s reasonable control but within SB’s reasonable control, both parties
shall meet and negotiate in good faith to establish should there be any additional charge due to
Petrosea if such delay, disruption or stoppage commercially affect its costs and expenses. In 2013,
there was disruption in the works of Petrosea through the letter No. 032/PTSB/II/2013 dated
February 27, 2013 received from SB.
As of the issuance date of the consolidated financial statements, Petrosea and SB are in discussions
and are yet to establish if there will be any additional charge due to Petrosea.
q. On August 19, 2009, Petrosea and PT Adimitra Baratama Nusantara (ABN) entered into Overburden
Removal and Coal Loading Agreement amounting to US$ 200 million at Sanga - Sanga Mine Site,
East Kalimantan. This agreement is effective for five years starting on August 19, 2009.
On August 25, 2011, the agreement was amended, which include among others, the increase in target for
coal and overburden production volume from 14 million ton coal and 126 million BCM overburden for five
years period to 41.25 million ton coal and 565.8 million BCM for nine years period, and the expiration date of
the contract from August 18, 2014 to December 31, 2018.
Petrosea and ABN entered into Plant Hire Agreement for Hire of Heavy Equipment and Personnel at ABN
Site, Sanga-Sanga, East Kalimantan. Commenced date for this agreement on January 1, 2012.
On September 2, 2013, certain clauses the overburden agreement were amended, which amongst
others, include payment of security deposits and rise and fall for period September 1, 2013 until
December 31, 2014.
- 117 -
On September 9, 2013, such Rental Agreement at ABN site was amended regarding on rise and fall
for period September 1, 2013 until December 31, 2014.
On December 23, 2013, the Overburden Removal Agreement was amended regarding drill and blast
service for year 2014. Due to community issues, drill and blast activities were cancelled in July 2014.
On January 2, 2014, the Overburden Removal Agreement and Rental Agreement of Heavy
Equipments and Personnel at ABN site were amended regarding rate for Pit 7 clause.
On March 27, 2014, the Overburden Removal Agreement and Rental Agreement of Heavy
Equipments and Personnel at ABN site were amended regarding rate for Pit Sari clause.
Due to the global coal market conditions, on October 3, 2014, ABN request Petrosea to reduce the
production capacity by reducing the number of diggers operating on site.
On November 25, 2014, both parties reached agreement to reduce production capacity and additional
discount on rates for all areas.
As a result of continuous decrease in coal price which is forecasted to continue for a number of years,
on December 3, 2014, ABN wrote to Petrosea requesting a further reduction in rates for the remaining
term of the contract. Petrosea has been in discussion with ABN on this matter. However, if ABN and
Petrosea are unable to reach an agreement, there is possibility of a slowdown activities or early
contract suspension and/or early termination of the ABN contract which should be expired by 2019. As
of reporting date, both parties are still in discussion to seek a resolution and/or agreement.
r. On October 22, 2010, Petrosea and PT Kideco Jaya Agung, a related party, entered into a Waste
Removal & Coal Production Agreement amounting to US$ 216 million at SM Popor, Suara Area, East
Kalimantan. This agreement is effective for five years commencing on January 1, 2011.
On May 10, 2013, Petrosea and PT Kideco Jaya Agung entered into Rental Agreement of Heavy
Equipment at SM Popor Area, Pasir Mine, East Kalimantan.
On October 28, 2013, the contract was amended under Addendum No. 2 which increased the total
quantities to be mined in 2014 and 2015 to 35 million BCM of overburden, respectively with a targeted
volume of 44 million BCM.
On December 31, 2014, the Waste Removal & Coal Production Agreement was amended under
Addendum No. 3, which include among others, the extention of expiration date of the contract from
December 31, 2015 to December 31, 2018 and regarding changes of rate for year 2015.
s. On June 25, 2001, Petrosea entered into a lease agreement of Pertamina’s land in Tanjung Batu,
Balikpapan, with Pertamina UP V Balikpapan. Based on this agreement, Petrosea rented assets
consisting of 89 ha land area, Jetty and warehouse located at Tanjung Batu, Balikpapan. This
agreement is valid for 15 years from February 1, 2001 until February 1, 2016.
Petrosea has received a letter from Pertamina dated March 2, 2015, wherein Pertamina has agreed in
principle to enter into a new agreement to extend Tanjung Batu land rental which will be expired on
February 1, 2016.
t. On April 15, 2013, Petrosea and PT Indonesia Pratama entered into an Agreement for Construction
Of The Haul Road 69 KM from Senyiur Port to Tabang Coal Mine, East Kalimantan. The contract
value is US$ 23.5 million.
- 118 -
On May 28, 2013, the agreement was amended under Addendum No. 1, which include additional
work for Engineering Procurement and Constructions (EPC) of the bridge for the coal haul road from
Senyiur Port to Tabang Coal Mine with the value amounting to US$ 3.39 million.
As of December 31, 2014 and 2013, balance of down payment from PT Indonesia Pratama for this
construction contract are amounting to US$ 1,005 thousand and US$ 2,280 thousand, respectively.
As of December 31, 2014, percentage of completion of this project is 72.4% and estimated project
completion date is April 30, 2015.
u. On June 27, 2014, Petrosea and PT Indonesia Pratama entered into Open Pit Overburden Mining
Services, Equipment Rental Agreement, and Coal Transportation Services Pit to ICF and Run of Mine
Stockpiles Agreement at Tabang site, Kutai Kartanegara – East Kutai, East Kalimantan. This
agreement is effective for seven years starting on October 1, 2014 with total overburden volume of
71.8 million BCM and 65.5 million ton of coal.
On June 30, 2014, the Equipment Rental Agreement was amended under Addendum No. 1
regarding project management, mine planning, surveying, supervision, site security, materials,
equipment, equipment maintenance, labour, transportation, medical services, consumables,
occupational health and safety, environmental, and site infrastructure.
v. On April 22, 2013, Petrosea and PT Indonesia Bulk Terminal entered into a Crane Replacement and
Wharft Work Agreement at IBT Terminal Pulau Laut Kalimantan. The scope of works consist of
freight and delivery to site of the crane, and some others constructions works and the project value is
amounting US$ 7 million.
w. On July 23, 2013, Petrosea and Chevron Indonesia Company entered into Shore Base Lease and
Operation Contract. This contract is to support the Indonesia Deep water Development (IDD) Project
and this contract is executed through Petrosea Offshore Supply Base (POSB) facility at Tanjung Batu,
East Kalimantan. Estimated value of the contract is US$ 27 million and effective for 5 years until year
2018.
x. On July 26, 2012 the amount of bank guarantee facility from HSBC, Jakarta is increased to US$ 15
million from the beginning of US$ 9 million, to support Petrosea’s plan to pursue substantial growth by
securing new projects.
On January 23, 2015, Petrosea and HSBC, Jakarta agreed to extend the facility until October 31, 2015.
As of December 31, 2014 and 2013, Petrosea had outstanding used balance of bank guarantees
from HSBC, Jakarta amounting to US$ 1,259 thousand and US$ 2,115 thousand, respectively.
The facility above requires Petrosea to maintain certain covenants.
- 119 -
y. MBSS has commitments of coal transhipment service. For Barging services can be classified
primarily as freight charter, time charter and fixed and variable. The commitments are as follows:
Project Period
No Name of Project Owner Start of project End of Project
BARGING
A. Freight Charter
1 Coal Barging Agreement PT Adaro Indonesia October 1, 2010 October 31, 2017
2 Charter for Coal transportation PT Holcim Indonesia Tbk April 1, 2012 March 31, 2015
3 Coal Transportation to Load and Transported from PT Bahari Cakrawala Sebuku April 1, 2014 March 31, 2017
Tanjung Kepala, Pulau Sebuku
4 Coal Transportation PT Indocement Tunggal February 1, 2014 January 31, 2015 *)

Perkasa Tbk
5 Contract for The Affreightment and Transhipment of PT Bahari Cakrawala Sebuku December 1, 2002 remaining life of
Sebuku Coal coal mine
6 Coal Transportation Contract PT Cotrans Asia March 1, 2014 February 28, 2017
(Related party, Note 47)
7 Coal Transportation Contract PT Baramulti Sugih Sentosa March 4, 2014 January 4, 2015 *)
8 Coal Barging Contract PT Kideco Jaya Agung June 28, 2012 June 28, 2017
(Related party, Note 47)
9 Coal Freight Services PT Kaltim Prima Coal August 1, 2014 December 31, 2014 *)
*) in the process of extension
Project Period
No Name of Project Owner Start of project End of Project
B. Time Charter
1 Vessel Operation Service for Cement Transport PT Holcim Indonesia Tbk May 9, 2011 May 9, 2016
2 Time Charter Party for Offshore Service Vessels PT Maritim Barito Perkasa June 12, 2014 December 12, 2014 *)
FLOATING CRANE
1 Coal Transhipment for Provision of Transhipment PT Kideco Jaya Agung September 28, 2010 September 28, 2015
Services at Adang Bay (Related party, Note 47)
2 Coal Transhipment Agreement for the Provision PT Kideco Jaya Agung January 1, 2013 December 31, 2017
of Transhipment Service at Adang Bay (Related party, Note 47)
3 Coal Freight Agreement in Muara Satui Anchorage Jhonlin Grup February 23, 2014 February 22, 2015 *)
Offshore Banjarmasin
4 Transhipment Services Agreement PT Bahari Cakrawala Sebuku April 1, 2014 March 31, 2017
* ) in the process of extension
- 120 -
z. MSC, a subsidiary through MBSS, has coal transhipment service commitment as follows:
Project period
Name of Project Owner Start of project End of project
Charter on the vessel PT Berau Coal April 23, 2011 April 22, 2016
"Princesse Chloe"
aa. MASS, a subsidiary through MBSS, has coal transhipment service commitment as follows:
Project period
Name of Project Owner Start of project End of project
Coal Transhipment at Muara Pantai PT Berau Coal June 1, 2012 June 1, 2017
Anchorage
bb. In relation with the MBSS’s Initial Public Offering, the Shareholders of MBSS through the
Shareholders Circular Resolution dated December 2 and 3, 2010 have agreed to implement
Management and Employee Stock Allocation (MESA) of up to 10% of the shares offered and have
agreed to implement Management and Employee Stock Option Plan (MESOP) up to 2% of the total
paid-up capital of the Company after Initial Public Offering; and after the exercise of the Convertible
Loan.
As of December 31, 2014, only Management and Employee Stock Option Program (MESOP) remains
unrealized in relation with the abovementioned resolution.
cc. On October 2, 2013, MEA, a subsidiary, entered into Land Use Cooperation agreement with
PT. Ganda Alam Makmur (GAM), wherein MEA agreed to grant exclusive right for land usage
located in East Kutai, on which MEA holds the Location and Construction Permit, in order for GAM to
construct the hauling road. As compensation, MEA shall receive fees from GAM, as stated in such
agreement.
dd. In October 2013, the Company and China Railway Group Limited entered into agreement to jointly
develop mining and transportation infrastructure projects in the Papua and Central Kalimantan
Province in Indonesia.
ee. On September 26, 2006, KPI entered into a service agreement with Freeport, which was further
amended on January 10, 2013 and extended until January 1, 2016. Under this agreement, KPI shall
operate and utilize the facilities described in the agreement solely in connection with the performance
of the service and shall perform the service exclusively for the benefit of Freeport. As a
compensation, KPI will receive the following:
 KPI’s compensable expenses consisting of all cash costs, expenses, charges, fees and other
amounts whatsoever, whether capital, ordinary or extraordinary in nature, excluding extraordinary
expenses as defined in the agreement, incurred by KPI in carrying out its activities under and in
connection with the agreement.
 Port and operating services fee shall be fixed monthly amount of US$ 142,000 plus an amount
equal to 7.5% of direct labor costs of KPI’s employees that are paid either directly to employees
or as payroll related costs for the month, and safety incentive of an amount up to 2.5% of the
agreed cost. The safety incentive will be calculated and accrued monthly and paid semi annually.
- 121 -
50. MONETARY ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES
At December 31, 2014 and 2013, the Company and its subsidiaries had monetary assets and liabilities in
foreign currencies as follows:

Foreign Equivalent in Foreign Equivalent in
Currency US$ Currency US$
Assets
Cash and cash equivalents IDR 516,882,634,440 41,550,031 598,251,262,091 49,081,242
SGD 1,404,820 1,064,016 2,105,877 1,663,414
EUR 1,231,508 1,498,130 33,207 45,827
AUD 34,625 28,441 35,568 31,736
Other financial assets IDR 6,632,460,640 533,156 828,852 68
Trade accounts receivable IDR 89,528,789,120 7,196,848 44,878,069,650 3,681,850

SGD 130,084 98,526 299,934 236,915
Unbilled receivables IDR - - 13,861,196,721 1,137,189
Other accounts receivable IDR 89,023,277,280 7,156,212 66,561,569,310 5,460,790
Other current assets IDR 4,862,308,120 390,861 4,994,789,422 409,778

SGD 1,303 987 98,748 78,000
EUR - - 2,174 3,000
AUD - - 1,121 1,000
Advances and other noncurrent assets IDR 54,658,262,440 4,393,751 45,701,970,234 3,749,444
Prepaid taxes IDR 897,472,977,200 72,144,130 603,839,793,348 49,539,732
Claim for tax refund IDR 122,788,559,720 9,870,463 164,594,417,469 13,503,521
Total Assets 145,925,552 128,623,506
Liabilities
Trade accounts payable IDR 337,802,639,320 27,154,553 118,336,708,409 9,708,484
SGD 631,857 478,571 812,609 641,873
EUR 732,067 890,560 237,981 328,426
AUD 22,510 18,490 57,855 51,621
JPY 397,846 3,334 510,984 4,870
GBP 3,000 4,672 - -
MYR 7,869 2,253 9,248 2,813
PHP 218,030 4,870 441,420 9,942
Other accounts payable IDR 14,037,145,600 1,128,388 11,144,024,280 914,269

SGD 292,566 221,591 294,758 232,827
EUR 5,197 6,322 - -
Taxes payable IDR 87,964,469,570 7,071,099 67,752,556,500 5,558,500
Accrued expenses IDR 409,720,480,737 32,935,730 336,655,775,017 27,619,638

SGD 38,643 29,268 571,217 451,199
EUR 548,478 667,224 2,564,418 3,539,027
AUD 42,569 34,966 - -
GBP 211,973 330,063 47,097 77,651
Dividend payable IDR 5,660,200,000 455,000 3,244,090,161 266,149
Long-term loans IDR 2,064,799,160 209,389 9,816,533,040 805,360

SGD 19,023,736 14,411,921 19,920,360 15,734,919
Lease liabilities IDR 3,367,682,160 270,714 261,429,672 21,448
Employment benefit obligation IDR 339,878,164,250 27,321,396 266,462,302,887 21,860,883
Total Liabilities 113,650,374 87,829,899
Total Net Assets 32,275,178 40,793,607
- 122 -
The conversion rates used by the Company and its subsidiaries on December 31, 2014 and 2013 and
the prevailing rates on March 6, 2015 are as follows:
March 6, 2015 December 31, 2014 December 31, 2013
US$ US$ US$
Foreign currency
IDR 1 0.0001 0.0001 0.0001
SGD 1 0.7798 0.7574 0.7899
AUD 1 1.1030 0.8214 0.8923
EUR 1 1.5244 1.2165 1.3801
GBP 1 0.8334 1.5571 1.6488
MYR 1 0.2741 0.2863 0.3042
PHP 1 0.0227 0.0223 0.0225
JPY 1 0.7300 0.0084 0.0095
In relation with fluctuation of US$ against foreign currencies, the Company and its subsidiaries recorded
net loss on foreign exchange of US$ 4,040,491 in 2014 and US$ 9,797,528 in 2013.
51. OTHER SIGNIFICANT INFORMATION
The Company, TPC and PT Ganesha Intra Development Company (GID) entered into a merger
agreement (the “Merger”) based on deed No. 25 dated February 15, 2007, drawn up before Imas
Fatimah, SH, public notary in Jakarta, with the Company as the surviving company while TPC and GID
were liquidated without the process of liquidation. The merger was effective on March 2, 2007.
In relation to the merger, the stockholders of the Company, TPC and GID obtained combined control
over the whole of their net assets and liabilities to achieve a continuing mutual sharing in the risks and
benefits of the combined entity. Therefore, the merger was accounted for using the pooling of interest
method of accounting.
In relation to the merger, the Company has applied for approval with the Directorate General of Taxation
(DGT) to use historical net book value in accounting for the merger. The DGT has three times issued
rejection letter, the latest through letter No. S-441/PJ.031/2008 dated May 29, 2008. In response to this
rejection letter, the Company has filed an appeal to the tax court through letter No. 007/06.08/IIE.Tax
dated June 17, 2008. On April 20, 2009, based on letter No. Put. 17815/PP/M.XII/99/2009, the tax court
decided to approve the use of historical net book value in accounting for the merger.
Subsequently, in September 2009, DGT has filed a reconsideration request against the above tax court
decision to the Supreme Court through its letter Memori Peninjauan Kembali No. S-7109/pj.074/2009.
The Supreme Court, through its decision letter No. 512/B/PK/PJK/2010, rejected the DGT’s
reconsideration request.
- 123 -
52. NON CASH TRANSACTIONS

The Company and its subsidiaries have non-cash investing and financing transactions that were not presented
in the consolidated statements of cash flows as of December 31, 2014 and 2013 with detail as follows:
2014 2013
US$ US$
Addition to exploration and evaluation assets through:

Other payables 993,645 -
Addition to mining properties through:
Other payables 3,160,028 -
Addition to property, plant and equipment through:
Other payables 3,220,176 -
Bank loan - 2,632,000
Lease liabilities - 2,556,000
Advances - 4,394,217
Addition to intangible assets through:
Other payables 715,882 -
53. SUBSEQUENT EVENTS
a. On January 16, 2015, PT Indika Energy Infrastructure and PT LPG Distribusi Indonesia entered
into sale and purchase agreement with a third party to sell all of their share ownership in PT
Wahida Arta Guna Lestari at selling price of Rp 18 billion.
As at reporting date, all assets and liabilities of WAGL were presented separately from other asset
and liabilities in the consolidated statement of financial position and were classified as assets held
for sale and liabilities associated with assets held for sale. Assets held for sale consisted mainly of
property, plant and equipment of US$ 865,917 (Note 21) and cash and cash equivalents of
US$ 411,898.
b. On February 16, 2015, the Company withdrew US$ 10 million from its uncommitted credit facility
provided by Citibank N.A. (Note 49d). Such loan will be due on May 18, 2015 and bears interest
rate per annum at 2.5% above LIBOR, payable on a monthly basis.
Such loan is intended to finance the coal trading activities in ICI a subsidiary.
c. On February 24, 2015, the Company withdrew US$ 30 million from its revolving uncommitted credit
facility provided by Bank Mandiri (Note 49a). Such loan will be due on July 17, 2015 and bears
interest rate per annum at 4.24% above LIBOR, payable on a quarterly basis.
Such loan is intended to finance the coal trading activities in ICI a subsidiary.
d. During January to March 2015 period, MUTU received several underpayment tax assessment letters
from Directorate General of Taxation on its obligation for Value Added Tax, as follows:
Tax period Date of Tax Assessment Letter Amount of Tax Underpayment

Rp
January 2010 January 2015 72 million

February 2010 February 2015 6,173 million
March 2010 March 2015 575 million
January-November 2011 January 2015 66,554 million
MUTU will file an objection letter against such assessment letters.
- 124 -
e. During January–February, 2015, the Company made a partial payment of Working Capital Credit
loan from PT Bank Mandiri (Persero) Tbk and IIC made an early payment of its bank loan to Citibank
(Note 24).
f. In March 2015, Petrosea has received letters from GBP to early terminate contract
(Note 49n) and a letter from Pertamina, that has agreed in principle to enter into a new agreement
to extend Tanjung Batu (Note 49s).
54. CURRENT ECONOMIC CONDITION
The global economic growth in 2014 is slowing down due to the impact of crisis in Europe and low
growth in China and India. The prices of certain world commodities including coal have decreased.
The continous decline of coal price in the future may adversely affect the Company and its subsidiaries’
and/or its customers’ operations. Also, the effects of the economic situation on the financial condition of
the customers have increased the credit risk inherent in the receivables from customers.
Recovery of the economy condition is dependent on resolution of the economic crisis, which are beyond
the Company and its subsidiaries’ control, to achieve economic recovery. It is not possible to determine
the future effect the economic condition may have on the Company and its subsidiaries’ liquidity and
earnings, including the effect flowing through from its investors, customers and suppliers.
The management believes that the Company and its subsidiaries have adequate resources to continue
their operations for the foreseeable future. Accordingly, the Company and its subsidiaries continue to
adopt the going concern basis in preparing the consolidated financial statements.
55. RECLASSIFICATION OF ACCOUNTS
Certain accounts in the 2013 consolidated financial statements were reclassified to conform with the
2014 consolidated financial statements presentation as follows:
Before After
reclassification Reclassification reclassification
US$ US$ US$
ASSETS
NONCURRENT ASSETS
Property, plant and equipment - net of
accumulated depreciation 696,791,991 (1,107,395) 695,684,596
Intangible assets 320,036,926 1,107,395 321,144,321
CURRENT LIABILITIES
Third parties 66,080,338 (2,632,361) 63,447,977
Third parties 5,977,793 2,632,361 8,610,154
- 125 -
Before After
reclassification Reclassification reclassification
US$ US$ US$
COST OF CONTRACTS AND GOODS SOLD

Cost of contracts and services (667,632,805) 308,366 (667,324,439)
General and administrative expenses (152,450,752) (2,125,441) (154,576,193)
Finance cost (113,997,399) (114,664) (114,112,063)
Amortization and impairment of intangible assets (54,530,597) 2,185,861 (52,344,736)
Others - net (26,065,448) (254,122) (26,319,570)
The above reclassifications do not have material effects to the prior year consolidated financial
statements and to the consolidated statements of financial position as at the beginning of the preceding
year.
56. SUPPLEMENTARY INFORMATION
The supplementary information the parent company only on pages 127 to 130 presented the statements
of financial position, statements of comprehensive income, statements of changes in equity, and
statements of cash flows in which investments in subsidiaries and associates were accounted for using
cost method.
57. MANAGEMENT RESPONSIBILITY AND APPROVAL OF CONSOLIDATED FINANCIAL STATEMENTS
The preparation and fair presentation of the consolidated financial statements on pages 3 to 126 were
the responsibilities of the management, and were approved by the Company’s Directors and authorized
for issue on March 6, 2015.
*********
- 126 -
PT. INDIKA ENERGY Tbk
STATEMENTS OF FINANCIAL POSITION
(PARENT COMPANY ONLY)

2014 2013
US$ US$
ASSETS
CURRENT ASSETS
Cash and cash equivalents 36,842,758 52,703,423
Trade accounts receivable - Third parties 46,421 1,055
Other accounts receivable - Related Parties 58,732,396 74,228,972
Loan to related party 30,083,004 -
Dividen receivable 25,000,000 -
Prepaid taxes 4,619,158 2,935,554
Other current assets 269,563 189,259
Total Current Assets 155,593,300 130,058,263
NONCURRENT ASSETS
Other accounts receivable
Related parties 3,341,906 3,408,511
Third parties 625,620 3,454,261
Claim for tax refund 5,837,172 2,334,204
Investment in subsidiaries 176,186,255 172,369,142
Advances and other noncurrent assets 577,176,241 553,374,353
Property, plant and equipment - net of accumulated
depreciation of US$ 15,790,440 as of December 31, 2014,
and US$ 12,671,382 as of December 31, 2013 46,697,773 33,430,687
Intangible assets 1,885,129 3,454,250
Refundable deposits 470,558 372,112
Total Noncurrent Assets 812,220,654 772,197,520
TOTAL ASSETS 967,813,954 902,255,783

CURRENT LIABILITIES
Bank loans 30,022,411 -
Related parties 384,928 363,972
Third parties 2,467,332 1,503,794
Taxes payable 426,657 926,296
Accrued expenses 785,039 1,065,167
Accrued interest 16,557,626 14,552,751
NONCURRENT LIABILITIES
Loan from related parties 529,642,053 520,993,684
Long-term debts 209,389 282,798
Employment benefit obligation 6,050,959 4,652,646
Total Liabilities 586,546,394 544,341,108

EQUITY
Capital stock - Rp 100 par value per share
Authorized - 17,000 million shares
Subscribed and paid-up - 5,210,192,000 shares in 2014 and 2013 56,892,154 56,892,154
Additional paid-in capital 250,847,920 250,847,920
Other components of equity 65,000,656 65,000,656
Retained earnings (deficit)
Appropriated 5,312,496 5,312,496
Unappropriated 3,214,334 (20,138,551)
Total equity attributable to owners of the Company 381,267,560 357,914,675
Total Equity 381,267,560 357,914,675
TOTAL LIABILITIES AND EQUITY 967,813,954 902,255,783
- 127 -
STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED
2014 2013
US$ US$
REVENUES 330,343 318,609
COST OF REVENUES (228,488) (220,665)
GROSS PROFIT 101,855 97,944
Dividend income 95,840,501 118,825,859

Investment income 294,337 879,068
General and administrative expenses (29,714,299) (42,686,451)
Finance cost (47,011,145) (63,358,233)
Others - net 3,841,636 (8,536,384)
NET INCOME AND TOTAL COMPREHENSIVE INCOME 23,352,885 5,221,803
- 128 -
STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED
Other Components of Equity

Additional Other capital - Retained earnings
Capital stock paid-in capital employee stock option Other equity Appropriated Unappropriated Total equity
US$ US$ US$ US$ US$ US$ US$
Balance as of January 1, 2013 56,892,154 250,847,920 7,816,296 57,184,360 4,283,901 (5,331,759) 371,692,872
Appropriation for general reserve - - - - 1,028,595 (1,028,595) -
Cash dividend - - - - - (19,000,000) (19,000,000)
Total comprehensive income - - - - - 5,221,803 5,221,803
Balance as of December 31, 2013 56,892,154 250,847,920 7,816,296 57,184,360 5,312,496 (20,138,551) 357,914,675
Total comprehensive income - - - - - 23,352,885 23,352,885
Balance as of December 31, 2014 56,892,154 250,847,920 7,816,296 57,184,360 5,312,496 3,214,334 381,267,560
- 129 -
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED
2014 2013
US$ US$
CASH FLOWS FROM OPERATING ACTIVITIES

Cash receipts from customers 319,409 637,557
Cash paid to suppliers (10,680,642) (12,829,340)
Cash paid to directors and employees (11,587,383) (18,929,560)
Cash used in operations (21,948,616) (31,121,343)

Receipt from claim for tax refund 191,698 1,335,507
Interest received 172,204 844,213
Payment of finance cost (39,212,394) (36,813,032)
Payment of taxes (4,618,311) (6,802,835)
Net Cash Used in Operating Activities (65,415,419) (72,557,490)
CASH FLOWS FROM INVESTING ACTIVITIES

Dividends received 70,840,501 118,825,859
Proceeds from sale of property 518,071 305,424
Payment of advances and other non current assets (10,664) (1,865,469)
Acquisition of intangible assets (28,041) (1,251,392)
Payment of claim for tax refund (3,802,522) (2,943,169)
Acquisition of property and equipment (14,813,812) (920,582)
Proceeds from related parties 21,168,516 350,527,511
Payments to related parties (24,703,517) (141,899,985)
Loan to related parties (30,000,000) -
Withdrawal of other financial assets - 20,000,000
Placement of other financial assets - (20,000,000)
Net Cash Provided by (Used in) Investing Activities 19,168,532 320,778,197
CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from bank loans 35,000,000 -
Payments of bank loans and long-term loans (5,000,000) (250,303,209)
Payments of bonds issuance costs - (6,203,248)
Payments of dividend - (19,000,000)
Net Cash Provided by (Used in) Financing Activities 30,000,000 (275,506,457)
NET DECREASE IN CASH AND CASH EQUIVALENTS (16,246,887) (27,285,750)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 52,703,423 81,785,436
Effects of foreign exchange rate changes 386,222 (1,796,262)
CASH AND CASH EQUIVALENTS AT END OF YEAR 36,842,758 52,703,423
- 130 -
CORPORATE
INFORMATION
- 257 -
Corporate
SHAREHOLDERS COMPOSITION
(AS OF 31 DESEMBER 2014)
SHAREHOLDER SHARES %
Information PT Indika Mitra Energi

Pandri Prabono-Moelyo
Eddy Junaedy Danu
PT Indika Mitra Holdiko
3,307,097,790
231,100,200
81,880,500
10
63.47
4.44
1.57
0.00
Public 1,590,113,500 30.52
COMPANY NAME
PT INDIKA ENERGY TBK.
DOMICILE
DATE OF ESTABLISHMENT PT Indika Energy Tbk.
Graha Mitra 7th Floor
19 October 2000
Jl. Jendral Gatot Subroto Kav. 21
Jakarta 12930
Indonesia
E-mail: corporate.secretary@indikaenergy.co.id
investor.relations@indikaenergy.co.id
TICKER CODE
INDY
Laporan Tahunan 2014 PT Indika Energy Tbk. - 258 -

SHARE REGISTRAR SHARE REGISTRAR
Bursa Efek Indonesia (BEI) PT Datindo Entrycom
Puri Datindo – Wisma Sudirman
Jl. Jend. Sudirman Kav. 34-35
BUSINESS ACTIVITIES Jakarta 10220
Operating and investing in energy resources, energy Indonesia
servicesn and energy infrastructure through subsidiaries Tel.: (+62-21) 570-9009
and associate companies. Fax: (+62-21) 570-9026
PUBLIC ACCOUNTANT FIRM RATINGS AGENCY

Osman Bing Satrio & Eny Moody’s Singapore Pte Ltd
(Member of Deloitte Touche Tohmatsu) 50 Raffles Place #23-06
The Plaza Office Tower 32nd Floor Singapore Land Tower 048623
Jl. M.H. Thamrin Kav 28-30 Tel.: (65) 6398-8300
Jakarta 10350 Fax: (65) 6398-8301
Indonesia Website: www.moodys.com
Tel.: (+62-21) 2992 3100
Fax: (+62-21) 2992 8200 / 8300 PT Fitch Ratings Indonesia
Prudential Tower Lantai 20th Floor
Jl. Jend. Sudirman Kav. 79
Jakarta Selatan 12910 – Indonesia
Tel.: (+62-21) 5795-7755
Fax: (+62-21) 5795-7750
Website: www.fitchratings.com
- 259 - Informasi Perusahaan

Affiliates Companies
& Addresses
PT INDIKA ENERGY TBK. IIC
Graha Mitra 7 Floorth
PT Indika Inti Corpindo
Jl. Jend. Gatot Subroto Kav. 21
Jakarta 12930
Indonesia
Jakarta 12930
Tel.: (62-21) 2557-9888
Indonesia
Fax: (62-21) 2557-9800
Tel.: (62-21) 2557-9888

Website: www.indikaenergy.co.id
Fax: (62-21) 2557-9898
Corporate Secretary: Dian Paramita
corporate.secretary@indikaenergy.co.id
Investor Relations: Retina Rosabai IIR
investor.relations@indikaenergy.co.id
PT Indika Indonesia Resources
Ticker Code: INDY Graha Mitra 4th Floor
Jakarta 12930
Indonesia
Tel.: (62-21) 2557-9888

Fax: (62-21) 2557-9898
MEA
PT Mitra Energi Agung
Jakarta 12930
Indonesia
Tel.: (62-21) 2557-9888

Fax: (62-21) 2557-9898

MUTU PETROSEA
PT Multi Tambangjaya Utama PT Petrosea Tbk.
Graha Mitra 9 Floor
th
Wisma Anugraha 3rd Floor
Jl. Jend. Gatot Subroto Kav. 21 Jl. Taman Kemang No. 32B Kemang
Jakarta 12930 Jakarta 12730
Indonesia Indonesia
Tel.: (62-21) 2557-9888 Tel.: (62-21) 718-3255

Fax: (62-21) 2557-9898 Fax: (62-21) 718-3266
Website: www.indikaenergy.co.id Website: www.petrosea.com
Kode Saham: PTRO
KIDECO
MBSS
Menara Mulia 17th Floor Suite 1701 PT Mitrabahtera Segara Sejati Tbk.
Jl. Jend. Gatot Subroto Kav. 9–11 Menara Karya Building 12th Floor
Jakarta 12930 Jl. H.R. Rasuna Said Blok X-5 Kav. 1-2
Indonesia Kuningan, Jakarta 12950
Indonesia
Tel.: (62-21) 525-7626
Fax: (62-21) 525-7662 Tel.: (62-21) 5794-4755, 5794-4766
Website: www.kideco.com Fax: (62-21) 5794-4767, 5794-4768
Website: www.mbss.co.id
TRIPATRA Kode Saham: MBSS

PT Tripatra Engineers & Constructors
(TPEC)
PT Tripatra Engineering (TPE)
Jl. R.A. Kartini No. 34 (Outer Ring Road)
Cilandak Barat
Jakarta 12430
Indonesia
Tel.: (62-21) 750-0701

Fax: (62-21) 750-0700
Website: www.tripatra.com
- 261 - Informasi Perusahaan


Statements of Responsibility
This Annual Report, including the financial statements and other related information, falls under the full responsibility
of all members of the Board of Directors and Board of Commissioners of the Company whose signatures appear
below.
BOARD OF COMMISSIONERS BOARD OF DIRECTORS
WIWOHO BASUKI TJOKRONEGORO WISHNU WARDHANA

President Commissioner President Director
AGUS LASMONO M. ARSJAD RASJID P.M.

Vice President Commissioner Vice President Director
INDRACAHYA BASUKI AZIS ARMAND

Commissioner Director
PANDRI PRABONO-MOELYO RICHARD BRUCE NESS

Commissioner Director
ANTON WAHJOSOEDIBJO JOSEPH PANGALILA

Independent Commissioner Director
DEDI ADITYA SUMANAGARA RICO RUSTOMBI

Independent Commissioner Director
EDDY JUNAEDY DANU

Independent Director


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MEETING

-1- Table of Contents

Indika Energy at a Glance Financial Highlights

Corporate & Organisation Structure

Vision, Mission and Values

PT Indika Energy Tbk. Annual Report 2014 -2-

President Director’s Message Operational Review

Corporate Governance Overview

Corporate Social Responsibility

-3- Table of Contents

Over the years, the Company has grown rapidly both

Ownership 100% Ownership

PT Indika Inti Corpindo

PT Indika Energy Tbk. Annual Report 2014 -6-

-7- Corporate Overview

the Entire Coal

Electricity generation in coal-fired

Unloading coal from barges

Barging the coal to end user or

Loading process of coal to barges

Coal loading terminal with stockpile prior to barging

PT Indika Energy Tbk. Annual Report 2014 -8-

Economic and feasibility study of the coal reserves

Engineering and construction of

Overburden removal and coal extraction

Crushing and washing of extracted coal

Transportation of processed coal to

-9- Corporate Overview

PT Indika Energy Tbk. Annual Report 2014 - 10 -

ENERGY RESOURCES ▲ ENERGY SERVICES n ENERGY INFRASTRUCTURE ●

3 Santan Batubara 3 Pertamina HE ONWJ 3 Kuala Pelabuhan Indonesia

4 Mitra Energi Agung 4 Conoco Phillips - ESC

5 BP Tangguh Floating Crane Â

PT Indika Energy Tbk. Annual Report 2014 - 12 -

100% 90% 100% 100% 100%

PT Mitra Energi 100% PT Sea Bridge Shipping

PT Multi Tambangjaya Tripatra (Singapore)

Coal Trading (The Netherlands)

PT Citra Indah Prima

PT Sindo Resources PT Melawi Rimba Minerals

PT Indika Energy Tbk. Annual Report 2014 - 14 -

69.8% 100% 90% 100%

Independent Power Plant (IPP) Finance Subsidiary

(Indonesia) (Indonesia) (Indonesia) Transport & Logistics

95% 100% 100% 60%

100% 100% 69.97%

PT Wahida Arta Guna PT Mitra Hartono Sejati

PT Mitra Jaya Offshore

GROUP CHIEF DIRECTOR DIRECTOR DIRECTOR

Investor Relations &

Tax & Risk Management

PT Indika Energy Tbk. Annual Report 2014 - 16 -

RISK & INVESTMENT

VICE PRESIDENT DIRECTOR

DIRECTOR INDEPENDENT DIRECTOR GROUP CHIEF

Office of The CEO

ICT & Business Process

Corporate Security Indika

3. To create optimum shareholders value.