PUBLIC EXPOSE

Jakarta, 24 March 2009

Public Expose. March 24. 2009 – 2008 Year End Result 2

General Information about IndocementIndonesia Current Market ConditionFinancial UpdateInvestment Plan StrategyOutlook

Agenda

Public Expose. March 24. 2009 – 2008 Year End Result 3

Birchwood Omnia Ltd.

(100% owned by HC Group)

65%PT Mekar Perkasa 13%

Public22%

Indocement Shareholders Structure

Public Expose. March 24. 2009 – 2008 Year End Result 4

Indocement Businesses

CementCementCement

• Citeureup - 9 Plants

• Cirebon - 2 Plants

• Tarjun - 1 Plant

• Citeureup - 9 Plants

• Cirebon - 2 Plants

• Tarjun - 1 Plant

• PT Dian Abadi Perkasa – 99.9%(Cement Trading)

• PT Multi Bangun Galaxy * – 99.9%(Terminal-Land Operation)

• PT Pama Indo Mining - 40% (Mining Services in Tarjun)

• Stillwater Shipping Corp.* - 50% (Shipping)

• PT Bahana Indonor* - 50%(Owns & operates one ship & one floating terminal)

• PT Cibinong Center Industrial Estate- 50% (Industrial Estate in Citeureup)

• Indocement (Cayman Island) Limited- 99.9% (Investment)

• PT Gunung Tua Mandiri - 51% (Aggregates Business)

• PT Mandiri Sejahtera Sentra * - 40%(Aggregates Business)

• PT Dian Abadi Perkasa – 99.9%(Cement Trading)

• PT Multi Bangun Galaxy * – 99.9%(Terminal-Land Operation)

• PT Pama Indo Mining - 40% (Mining Services in Tarjun)

• Stillwater Shipping Corp.* - 50% (Shipping)

• PT Bahana Indonor* - 50%(Owns & operates one ship & one floating terminal)

• PT Cibinong Center Industrial Estate- 50% (Industrial Estate in Citeureup)

• Indocement (Cayman Island) Limited- 99.9% (Investment)

• PT Gunung Tua Mandiri - 51% (Aggregates Business)

• PT Mandiri Sejahtera Sentra * - 40%(Aggregates Business)

Ready-Mix ConcreteReadyReady--Mix ConcreteMix Concrete OthersOthersOthers

• PT Indomix Perkasa – 6 Plants(Capacity : 360.000 cubic meter)

• PT Pionirbeton Industri * – 7 Plants(Capacity : 420.000 cubic meter)

• PT Indomix Perkasa – 6 Plants(Capacity : 360.000 cubic meter)

• PT Pionirbeton Industri * – 7 Plants(Capacity : 420.000 cubic meter)

* Owned indirectly through a subsidiary

Public Expose. March 24. 2009 – 2008 Year End Result 5

Indocement Plant Locations and Major Terminal

Citeureup Factory

Tj. Priok Terminal

Cirebon Factory Surabaya Terminal Lombok Terminal

Tarjun Factory

Semarang Terminal

• Total current capacity of Indocement is 17.1 mt cement (Citeureup – 11.9 mt, Cirebon - 2.6 mt and Tarjun - 2.6 mt)

Public Expose. March 24. 2009 – 2008 Year End Result 6

• Domestic cement consumption reached 38.1 million tons in 2008, grew by 11.4% compared to 34.2 million tons in 2007

• Cement consumption in Java grew by 8.1%, while outside Java grew by 15.9% as a result of record commodity prices, particularly in mining and plantation, which prevailed throughout 2007, and extending well into the first half of 2008.

• The sales volume outside Java as a percentage of national sales growth to 44.2% from 42.5% in 2007

Source: ASI Published data

Indonesia Cement Market AnalysisExtraordinarily robust domestic cement market

27.530.2

31.5 31.934.2

38.1

47.5 47.546.1 44.9 45.5 46.2

+1.8%

+9.7%

+4.2%+1.5%

+7.0%

+11.4%

2003 2004 2005 2006 2007 2008

Domestic Consumption Total Supply Consumption Growth* in mio tons

Public Expose. March 24. 2009 – 2008 Year End Result 7

Domestic Consumption Growth by area – 2008

10-15%

5-10%

<5%

Market Growth:

15-20%

>20%

Strong national growth of 11.4% in 2008. Meanwhile, Indocement grew by 14.2%

Public Expose. March 24. 2009 – 2008 Year End Result 8

Market Shares Composition

Note:Gresik Group is a combination of Semen Gresik, Padang, and Tonasa

Indocement’s market share show increasing trend due to its capability to produce and distribute its product to the market place, particularly to its home market.

29.8

%

30.6

%

30.9

%

31.7

%

15.2

%

12.7

%

14.6

%

14.1

%

25.1

%

24.4

%

21.9

%

21.7

%

13.5

%

12.3

%

13.6

%

14.2

%

7.9% 8.4%

8.3%

8.6%

2005 2006 2007 2008

Indocement Holcim Semen Gresik Semen Padang Semen Tonasa

Public Expose. March 24. 2009 – 2008 Year End Result 9

Indocement Sales Highlights

Cement domestic sales volumes reached 12.3 million tons, an increase of 14.7% from 10.7 million tons in 2007.Meanwhile, export sales volume was reduced to 2.3 million tons from 3.8 million tons in 2007 in order to bring in adequate supply to the domestic market Market share in YTD Oct 08 grew to 31.7% because of company’s ample capacity to supply strong demand especially in its home market

9.6 mio t 10.0 mio t 10.7 mio t12.3 mio t

2.5 mio t 3.2 mio t 3.8 mio t2.3 mio t

2005 2006 2007 2008

Domestic Export

29.5%30.0% 29.7%

30.6% 30.9%31.7%Market Share

Public Expose. March 24. 2009 – 2008 Year End Result 10

Financial Results 2008Consolidated Income Statement

-40%-206-124Interest Expenses

78%9801,746NET INCOME

130%-32-73Forex Gains/(Losses)

42%2,15829.5%

3,05931.3%

EBITDAas % of Net Revenues

54%1,59321.8%

2,46025.2%

Income from Operationsas % of Net Revenues

34%1,1691,565Operating Expenses

46%2,76237.7%

4,02541.1%

Gross Profitas % of Net Revenues

26%4,5615,756Cost of Revenues34%7,3249,780Net Revenues1%14,56314,662Sales Volume (k Tons)

Change20072008

Public Expose. March 24. 2009 – 2008 Year End Result 11

Financial Results 2008Consolidated Balance Sheet & Financial Highlights

6,9158,522Equity + Minority Interest

10,03811,287Assets

2,344821Non Current Liabilities

7791,944Current Liabilities

7,7897,815Non Current Assets

2,2493,471Current Assets

20072008 6855

45 4229

2311

0

80

292164

102 87 54 37 16

832

02000 2001 2002 2003 2004 2005 2006 2007 2008

Net Borrowing to Assets

Net Gearing

974

776698

545

437

312246

117

3

2000 2001 2002 2003 2004 2005 2006 2007 2008

Net Debt Position (in USD mio)

Solid Balance Sheet with strong financial conditionThe outstanding loan balance per 31 December 2008 is only USD 75 mio.Cost of fund: LIBOR (or SBI) plus 90 bpsGearing ratio and debt level at the lowest level in more than a decade.

Public Expose. March 24. 2009 – 2008 Year End Result 12

Investment Plan Strategy

• Conversion two diesel engine - capacity 2 x 15 mw - to gas (dual fuel) in Citeureup plant and was fully completed in October 2008

• Two new cement mills now are under construction in Cirebon that will add 1.5 million tons of cement

• Due to current slow-down market demand, we delay the project & expected to be ready in operation by end of 2009.

• Future investment plans to increase capacity: Postponed!• Due to current weak domestic and export market condition; we expect current

capacity will be more than enough in next 2-3 years period!

18.6mt17.1 mt16.5 mt

2005 2007 2009

+ 0.6 mt+ 1.5 mt

Public Expose. March 24. 2009 – 2008 Year End Result 13

Investment Plan-Vertical Integration Strategy• In 2008, Indocement expanded into aggregate business by having

an integrated line of business in ready-mix and aggregates• Two aggregate quarries:

• PT Gunung Tua Mandiri (GTM) quarry with 1.5 MT p.a. capacity and 30MT reserves in Rumpin -Tangerang area and

• PT Mandiri Sejahtera Sentra (MSS) quarry with 0.5 MT p.a. existing capacity and total of 100MT reserve in Purwakarta –W. Java area

• Note: Indocement own 51% stake in GTM and 40% stake in MSS through subsidiary (and planned to be at least majority stakes after certain conditions are fulfilled in Q2/2009)

GTM GTM

MSS

2007 2008

30 mt

130 mt

Public Expose. March 24. 2009 – 2008 Year End Result 14

Developed plantations of jatropha curcas in a total area of 70 hectare in

Citeureup, 60 hectare in Cirebon, and 40 hectare in Tarjun, with around

400,000 trees.

Developed two processing plants of municipal solid waste into compost and

biomass, Citeureup and Cirebon.

Launched a pilot project of biogas made of cattle manure in cultivate village of

Citeureup factory.

CSR Activities in 2008

Public Expose. March 24. 2009 – 2008 Year End Result 15

4 March 2008: Received FWHB (Forum Wartawan Harian Bogor - Bogordaily Journalist Forum) Award – Contributing to pres development.

12 June 2008: Received Indonesia’s Most Admired Company Award (IMAC) – as “The Best Performance Company Image” for the cement category.

31 July 2008: Achieved Green rating for PROPER (Period: 2006-2007).

4 August 2008, Received Top 7 Best Managed Companies in Indonesia 2008 - Finance Asia Magazine, Hongkong

6 August 2008: Received Top Brand Award 2008 for cement category -Marketing Magazine & Frontier Consulting Group.

Awards 2008

Public Expose. March 24. 2009 – 2008 Year End Result 16

11 September 2008: Received The Value of Creator Award – SwaMagazine & Stern Steward & Co. Management Consultant.

5 November 2008: Received Best 5 Indonesian Financial Reporting Award 2008 for manufacturing industry category.

11-13 November 2008: Two Quality Control Cycles (QCC) of Indocement achieved the best performance at Indonesia Quality Convention 2008:

26 November 2008: Received Business Review Award 2008.

15 January 2009: Received The Best 4 in Corporate Governance Awards 2008 for Indonesia companies - The Asset, Hongkong.

23 Februaryi 2009 – Indocement achieved 3 awards of Indonesian CSR Awards 2008.

Awards 2008

Public Expose. March 24. 2009 – 2008 Year End Result 17

• Domestic cement consumption tends to weaken in 2009 and expectednegative growth of -6% due to the current tight liquidity condition and weakening commodity market.

The trend of stronger residential market than the infrastructure or high-rise building still continue in 2009, but expect some higher proportion of bulk cement (about 25~30%) only after the infrastructure projects is executed intensively by Government to create employment.

• Lower export market, as a a tight competition due to lower freight costs and slow down economy in the region, meanwhile our local coal purchase price is higher than what other country’s cement manufacturer purchase

• Recent high depreciation of IDR against USD & other foreign currency cause higher costs of production as more than 50% costs in USD equivalent• Despite, the current drop in fuel cost (but not the domestic coal price

yet) helps the Company’s cost structure

Outlook - 2009

Public Expose. March 24. 2009 – 2008 Year End Result 18

Thank you