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A N N U A L R E P O R T2018

P O I S E D F O R

G ROW T HP T S A R A T O G A I N V E S T A M A S E D A Y A T B K

This annual report contains “forward-looking” statements that relate to future events, which

are, by their own nature, subject to significant risks and uncertainties. All statements other than statements of historical fact contained in this report, including, without limitation,

those regarding PT Saratoga Investama Sedaya, Tbk. (“Saratoga” or “Company”)’s future financial position and results of operations, strategy, plans, objectives, goals and targets, future developments in the markets where Saratoga participates or is seeking to participate, and any

statements preceded by, followed by or that include the words “believe,” “expect,” “aim,”

“intend,” “will,” “plan,” “look forward to,” “may,” “project,” “estimate,” “anticipate,”

“predict,” “seek,” “should” or words of similar meaning, are forward-looking statements.

The future events referred to in these forward-looking statements involve known and

unknown risks, uncertainties and a variety of other factors, many of which are beyond the

control of Saratoga, which may cause the actual results, performance or achievements to

be materially different from those expressed or implied by the forward-looking statements. These factors include in particular, but not limited to, the matters described in Chapter 5: Corporate Governance of our Annual Report. These factors include in particular but are not limited to changes in general, national or regional economic and political conditions,

changes in foreign exchange rates, changes in the prices and supply and demand on the

commodity markets, changes in the size and nature of the Company’s competition, changes in legislation or regulations and accounting principles, policies and guidelines and changes

in the assumptions used in making such forward looking statements.PT Saratoga Investama Sedaya Tbk.

Disclaimer

Further information about risks and uncertainties affecting Saratoga is included throughout our interim financial statements and disclosures which are available on the Company’s website www.saratoga-investama.com. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect; actual results, performance

or achievements of Saratoga may vary materially from those described in the relevant

forward-looking statement as being expected, anticipated, intended, planned, believed,

sought, estimated or projected. Saratoga neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated.

Due to rounding, numbers presented throughout this annual report and other documents

may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

When relying on forward-looking statements, you should carefully consider the possibility

of such risks, uncertainties and events, especially in light of the political, economic, social

and legal environment in which Saratoga, its subsidiaries and affiliates operate. Saratoga makes no representation, warranty or prediction that the results anticipated by such for-

ward-looking statements will be achieved, and such forward looking statements represent, in

each case only one of many possible scenarios and should not be viewed as the most likely or

standard scenario. Accordingly, you should not place undue reliance on any forward-looking statements.

H I G H L I G H T SSaratoga Portfolio Highlights 3 Investment Track Record 4Active Investment Company 62018 in Pictures 9Financial Highlights 10

R E P O R T SPresident Commissioner’s Letter 12Report of the Board of Directors 16

M A N AG E M E N T D I S C U S S I O N & A N A LY S I S 20

I N V E S T E E C O M PA N Y H I G H L I G H T S 26

H U M A N R E S O U R C E S A N D C O R P O R AT E S O C I A L R E S P O N S I B L I T Y 30

C O R P O R AT E G OV E R N A N C E I N C L U D I N G R I S K M A N AG E M E N T 36

I M P L E M E N TAT I O N O F T H E C O R P O R AT E G OV E R N A N C E G U I DA N C E 54

C O R P O R AT E DATA 56Statement of Responsibility by the Members of BOC and BOD 69

F I N A N C I A L R E P O R T 71Reference OJK Circulation on Annual Report 148

Contents

HIGHLIGHTS

Saratoga is bullish on the long-term prospects of Indonesia.

The future of Indonesia is full of possibilities. It is the largest economy in Southeast Asia that has consistently grown around

5% annually, a youthful population that is increasingly educated, a thriving consumer market that is fueled by a fast-growing middle-class boom, abundant natural resources that are being turned into higher value goods, and a realistic potential to grow into the fifth

largest economy in the world by 2030.

Like Indonesia, Saratoga looks ahead to a bright future, but with hard work at hand. Throughout the year we placed a strong

emphasis on strengthening the management of investee companies, enhancing our human capital, and keeping our business value

propositions relevant to the changing marketplace. We also divested assets with good valuations.

Saratoga is keen on the prospect of growth in Indonesia amid the equally dynamic potential of growth throughout Southeast

Asia. We continue to both invest and create value in the nation’s key growth sectors of Natural Resources, Infrastructures, and the

Consumer Market.

In short, we are poised for growth and are committed to long-term value creation with our partners, for the benefit

of all our stakeholders.

Poised for Growth

HIGHLIGHTS

PT SARATOGA INVESTAMA SEDAYA TBK2

CONSUMER

17%

T H E S A R A T O G A P O R T F O L I O H I G H L I G H T S

NATURAL RESOURCES

53%

INFRASTRUCTURE

30%

AS OF YEAR-END 2018

GROWTH COMPANIES

PT MITRA PINASTHIKA MUSTIKA TBK.Automotive

Effective Ownership 48.62% Listed

PT GILANG AGUNG PERSADALifestyle

Effective Ownership 5.83% Non-Listed

PT MULIA BOSCO LOGISTIKCold-chain Logistics


PT FAMON AWAL BROS SEDAYAHealthcare


PT DELTOMED LABORATORIESHerbal Medicine

Effective Ownership <10% Non-Listed

PT ANEKA GAS INDUSTRI TBKAir Gas


EARLY STAGE COMPANIES

SIHAYO GOLD LIMITEDGold


PT AGRA ENERGI INDONESIAOil & Gas


GROWTH COMPANIES

PT MERDEKA COPPER GOLD TBK.Gold & Copper


PT PROVIDENT AGRO TBK.Palm Plantation


INTERRA RESOURCES LTD.Oil & Gas


LISTED BLUE CHIPS COMPANIES

PT ADARO ENERGY TBK.Coal & Power Generation


EARLY STAGE COMPANIES

PT TENAGA LISTRIK GORONTALOPower Generation


GROWTH COMPANIES

PT NUSA RAYA CIPTA TBK.Construction


LISTED BLUE CHIPS COMPANIES

PT TOWER BERSAMA INFRASTRUCTURE TBK.

Telecommunication Tower


32018 ANNUAL REPORT

I N V E S T M E N T T R A C K R E C O R D

2012

NA

V P

ER S

HA

RE (I

DR)

2002 - 2006 2007 - 2009 2010 2011

LIS

TIN

GD

IVES

TMEN

TSA

RA

TO

GA

IN

VES

TM

ENT

AC

TIV

ITY

7,462 7,157

6,108

Sold stake in an investee company

PT Provident Agro Tbk.

PT Tower Bersama Infrastructure Tbk.

PT Adaro Energy Tbk.

Interra Resources Limited

Natural ResourcesOil & Gas

Seroja Investment Limited

InfrastructureFreight Chartering

Sihayo Gold LimitedNatural Resources

Gold

Sumatra Copper and Gold plc

Natural ResourcesPolymetallic

PT Medco Power Indonesia

InfrastructurePower Generation

PT Tri Wahana Universal

InfrastructureOil Refinery

PT Adaro Energy Tbk.Natural Resources

Coal & Energy

PT Tower Bersama Infrastructure Tbk.

(formerly PT Banyan Mas)Infrastructure

Telco Tower

PT Adaro IndonesiaNatural Resources

Coal & Energy

PT Banyan MasInfrastructure

Telco Tower

PT Tenaga Listrik Gorontalo

InfrastructurePower Generation

PT Lintas Marga SedayaInfrastructure

Toll Road

PT Provident Agro Tbk.Natural ResourcesPalm Oil Plantation

PT Agro Maju RayaNatural Resources

Palm Plantation

PT Mitra Pinasthika Mustika Tbk.

ConsumerAutomotive

PT Etika Karya Usaha

ConsumerProperty

539

3,560

HIGHLIGHTS


2013 2014 2015 2016 2017

7,202

6,557

8,174

5,007

8,240


PT Saratoga Investama Sedaya Tbk.

PT Merdeka Copper Gold Tbk.

DivestedPT Pulau Seroja Jaya

Divested palm

plantation assets of PT Provident Agro Tbk.

with a market premium price per hectare.

Issued EB of USD100 million


Divested PT Lintas Marga Sedaya

Divested PT Medco Power Indonesia


PT Gilang Agung PersadaConsumer

Lifestyle

PT Trimitra Karya Jaya (holding

of PT Merdeka Copper Gold Tbk.)

Natural ResourcesGold

Finders Resources Limited

Natural ResourcesPolymetallic

PT Nusa Raya Cipta Tbk.

InfrastructureConstruction


ConsumerAutomotive

PT Agra Energi Indonesia

Natural ResourcesOil & Gas

PT Paiton EnergyInfrastructurePower Generation

PT Mulia Bosco Logistik Consumer

Cold-chain logistics

PT Famon Awal Bros Sedaya

ConsumerHealthcare

PT Deltomed Laboratories

Consumer Herbal Medicine

2018

5,814

Divested PT Batu Hitam Perkasa

(Paiton Energy)

PT Aneka Gas Industri Tbk

Consumer Air Gas

1.4TACTIVE INVESTMENT

AMOUNT

SEIZING GREAT INVESTMENT OPPORTUNITIES

DURING TURBULENT TIMES

900B IDR

RECORD DIVIDEND INCOME

FROM INVESTEE COMPANIES

NEW INVESTMENT

NEW INVESTMENT IN THE GROWING

CONSUMER SECTOR

SUCCESSFUL DIVESTMENT

1 1DIVESTMENT

IN INFRASTRUCTURE SECTOR

52018 ANNUAL REPORT

S A R A T O G A I N D O N E S I A ’ S A C T I V E I N V E S T M E N T C O M P A N Y

WHO WE AREPT Saratoga Investama Sedaya Tbk. (ticker code: SRTG)

is a world-class active investment company in Indonesia with a unique track record of creating value for our stakeholders and the nation. Our

investments provide the public with access not only to key strategic growth sectors of Indonesia but also blue chip sector leaders and

promising early stage and growth companies.

WHAT WE DO

I N V E S T With a passion for excellence, we actively approach investment

opportunities early on where significant value can be added.

G R O WWe are highly active in supporting our investments, leveraging our

expertise in investment management, sector knowledge and wide range of access to debt and equity capital markets, locally and internationally.

M O N E T I Z EWe actively manage our investments by unlocking value of our investee

companies through capital markets and strategic sales.

VISION

A WORLD-CLASS ACTIVE INVESTMENT COMPANY IN INDONESIA THAT EXCELS ON THE BACK OF STRONG CORPORATE

CHARACTERS TO CREATE VALUE FOR OUR STAKEHOLDERS AND THE NATION

CORE VALUES

WORK HARD WORK SMART

WORK THOROUGHLY WORK WHOLEHEARTEDLY

CORPORATE CHARACTERS

INTEGRITYPASSION & ENERGY

COMPETENCE & CAPABILITY

MISSION

TO BE THE PARTNER OF CHOICE FOR INVESTORS TO PARTICIPATE IN THE DYNAMIC GROWTH OF INDONESIA

HIGHLIGHTS


2 0 1 8 A T A G L A N C E

ADRO 295

MPMX 282

TBIG 221

PALM 79

NRCA 5

882

ADRO 219

TBIG 190

PALM 132

MPMX 59

TWU 19

NRCA 3

622

ACTIVE

INVESTING

DIVIDEND

INCOME

2018

542

2016

420

OPPORTUNITIES

PRELIMINARY ASSESSMENTS

DESKTOP DILIGENCE

TERM SHEET

NEW INVESTMENT

DISCIPLINED

EXECUTION

124

50

31

4

1

102

41

27

2

2

VALUE

GENERATION(Net Asset Value)

22,356 19,540

2017

IDR Billion

1,403

91

47

32

8

1

15,772

ADRO 483

TBIG 251

PALM 117

BHP 40

NRCA 7

DELTOMED 2 900

72018 ANNUAL REPORT

OUR ACTIVE INVESTMENT METHODOLOGY

We are guided by three clear concepts, namely Platforms, Partnerships and Value creation.

P L A T F O R M SWe view each investment strategically, as a platform for organic growth

and future bolt on acquisitions within the entire value chain.

PA R T N E R S H I P SWe work closely with existing business owners whose role is critical in providing

continuity and performance. Working with global professional investors, our role is defined as a vital local partner, providing extensive knowledge of the

market and regulatory environment. We embrace specialist expertise that can equip our investees with superior

knowledge and technology for competitive advantage.

VA L U E C R E A T I O NWe offer capital support, operational input, financial advisory and access to significant business expertise and commercial acumen, across the Saratoga group. Our portfolio provides shareholders with a prudent balance of risk

management and reward.

OUR INVESTMENT FRAMEWORK

Our investment framework is defined by the substantial development opportunities in Natural Resource, Infrastructure and Consumer products and services markets – the three key

pillars supporting Indonesia’s economic growth.

Our portfolio is spread across:•

early stage companies with significant upside;•

growth companies entering their mature, highly cash generative phase; and

• listed blue chip companies with well-established market

positions, offering long term growth and capital appreciation.•

S A R A T O G A I N D O N E S I A ’ S A C T I V E I N V E S T M E N T C O M P A N Y

HIGHLIGHTS


2 0 1 8 I N P I C T U R E S

• Annual General Meeting Shareholders • Extraordinary General Meeting Shareholders • Public Expose 2018

Saratoga supported the Grand Launch of School Building of SMK Ora et Labora, the first 3 + 1 year program private Vocation School specializing in Electric Power Plant Technology

Saratoga’s Christmas Gathering at Panti Pondok Kasih Agape Orphanage in Cilincing, North Jakarta.

26 JUNE 2018 18 OCTOBER 2018

8 DECEMBER 2018

Saratoga received an award from Financial Services Authority (OJK) with Indonesian Institute for Corporate Directorship (IICD) as and one of the Top 50 Public Listed Companies

Saratoga Year-End PartyAn annual gathering for Saratoga’s employees

The divestment of PT Batu Hitam Perkasa, the holder of 5% shares in PT Paiton Energy.

The disclosure of the acquisition of PT Aneka Gas Industri Tbk.

10 DECEMBER 2018

13 DECEMBER 2018

12 DECEMBER 2018

20 DECEMBER 2018

92018 ANNUAL REPORT

2016

488 23,802 25,144

2,792 721

1,062 5,778

18,984 382

19,366

25,144

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

IDR billion

ASSETSCash and cash equivalentsInvestments in equity securitiesTOTAL ASSETS

LIABILITIESBorrowingMedium term notesExchangeable bondsTOTAL LIABILITIES

EQUITYNet equity attributable to owners of the CompanyNon-controlling interestTOTAL EQUITY

TOTAL LIABILITIES AND EQUITY

DESCRIPTION

2018

782 18,730 20,115

3,938 - -

4,151

15,655 309

15,964

20,115

2017

902 24,755 26,630

2,465 -

959 4,342

22,033 255

22,288

26,630

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

IDR billion

IncomeExpenses(Loss) Profit Before Income Tax

(LOSS) PROFIT FOR THE YEAR

TOTAL COMPREHENSIVE (LOSS) INCOME FOR THE YEAR

(Loss) Profit attributable to:Owners of the Company

Total comprehensive (Loss) income attributable to:Owners of the Company

(LOSS) EARNING PER SHARE BASIC (whole Rupiah)

DESCRIPTION 31 DECEMBER

2017

3,878 627

3,251

3,162

3,160

3,274

3,272

1,208

CONSOLIDATED ASSETS

IDR billion

2017 20182016

26,630 25,144

20,115

CONSOLIDATED LI ABILITIES

IDR billion

2017 20182016

4,342 5,778

4,151

C ONS OL I DAT E D E QU I T Y

IDR billion

2017

22,033

20182016

18,98415,655

PROFIT ATTRIBUTABLE TO OWNERS OF THE COMPANY

IDR billion

20182016

7,500

(6,195)

2016

9,330 893

8,437

7,534

6,088

7,500

6,079

2,766

2018

(6,179) (506)

(6,685)

(6,135)

(6,134)

(6,195)

(6,194)

(2,284)

F I N A N C I A L H I G H L I G H T S

2017

3,274

31 DECEMBER

HIGHLIGHTS


31 DECEMBER

R AT IO (in percentage or times)

DESCRIPTION

2017 1,923

- (1,494)

902

2016 293

- (303) 488

Net cash from operating activitiesNet cash used in investing activitiesNet cash (used in) from financing activitiesCash and cash equivalent at end of year

31 DECEMBER

C O N S O L I D A T E D S T A T E M E N T O F C A S H F L O W

IDR billion

DESCRIPTION

2017

(58) (30) (58) (48)

6 (25)

15

(16) 82 81 12 12 15 15

N/A 0,16 0,19 0,13 0,16

2016

52 (120) 419 727

51 11 69

(10) 81 65 36 29 49 39

N/A 0,23 0,30 0,18 0,24

GROWTH RATIOS (%)IncomeExpenseProfit for the yearTotal comprehensive income for the yearTotal assetsTotal liabilitiesNet equity

OPERATING RATIOS (%)Expense/IncomeProfit for the year / IncomeTotal comprehensive income for the year / incomeTotal profit for the year / average total assetsTotal comprehensive income for the year / average total assetsTotal profit for the year / average net equityTotal comprehensive income for the year / average net equity

FINANCIAL RATIOS (times)Current assets / current liabilitiesTotal liabilities / total assetsTotal liabilities / total equityTotal debt / total assetsTotal debt / net equity

2018 (379)

- 168 782

2018

(259) (19)

(294) (294) (24)

(4) (28)

N/A N/A

N/A (26) (26) (32) (32)

N/A 0,21 0,26 0,20 0,25

112018 ANNUAL REPORT

The world has gone through a fair amount of challenges in 2018. Confrontational international politics, trade wars, volatile global commodity prices, and a tightening US monetary policy all combined to create a challenging global economic environment, especially felt by the emerging market economies as their currencies buckled under capital flight and the might of the US dollar.

Indonesia was no exception. The currency weakened against the USD dollar throughout the year and the interest rate increased from 4.25% to 6%. However, Indonesia’s economic fundamentals showed its resilience and endured the challenges with a 5.17% GDP growth at the end of the year. The fact that Indonesia has been able to sustain stable economic growth over the past decade is in no small part a measure of the nation’s strength. Going forward, with improved infrastructures and systems in energy, transportation, logistics, telecommunications, healthcare and many other sectors, Indonesia could sustain even higher economic growth in decades to come.

Saratoga has been committed to Indonesia since the inception and has been investing in all parts of the economy ever since. Our goal of the investment is to support the country and government policies and be able to capitalize on the opportunities at the same time. Looking back to the two decades of running Saratoga, I think we have achieved what we set out to do in the beginning, and I imagine we will continue to do so for the decades to come. None of our achievement would have been successful without a great country that is full of abundant resources and opportunities, a smart government that inspires to be better and stronger every day, a young population that brings innovation and creativity, and a great team as I have been blessed with to walk the journey with me in the past two decades.

R E P O R T S

P R E S I D E N T C O M M I S S I O N E R ’ S

L E T T E R

"Despite a turbulent 2018, we remain bullish on the long-term growth prospects of the Indonesian economy, and Saratoga continues to strive

relentlessly to solidify our position as a leading investment holding

company in Indonesia – Poised for Growth."

CHAPTER 1 REPORTS


Saratoga’s Performance in 2018 Overall, I am pleased with how the performance of our

investment faired in 2018. Here are some highlights of the year under review:

• Saratoga posted record dividend amounts of approximately Rp900 billion from six portfolio companies.

• However due to the market volatility and the new accounting treatment adapted in 2017, Saratoga posted a net loss of approximately Rp6.2 trillion, driven primarily by the decline of the market valuation of PT Adaro Energy Tbk. and PT Tower Bersama Infrastructure Tbk. shares. It is worth pointing out the loss is unrealized and will rebound once the share prices move in our favor. In fact, the loss was lessened as stock prices on the Indonesia Stock Exchange – including those of our portfolio companies – have climbed back since the start of 2019.

• At the Saratoga holding level, we made one new investment (PT Aneka Gas Industri Tbk.) and divested PT Batu Hitam Perkasa (Shareholder of Paiton Energy) during the year.

• We also increased our exposure to the technology sector by investing in funds managed by Provident Capital and Skystar Capital.

• Throughout the year, we invested in time and efforts to strengthen the businesses of our portfolio companies. The following report of the Board of Directors will highlight these efforts.

Strengthening Corporate GovernanceAgainst increasing uncertainties in both the global and

domestic economic environment, it is prudent to pay more attention to good corporate governance. As such, we have strengthened our governance framework with more robust checks and balances, while also increasing the roles of governance committees as we continue to be cautious and measured in achieving our goals through our investment portfolio. Reflecting our cautious approach especially in these turbulent times, we spent most of our time and resources at improving the quality of our investment portfolio.

The Board of Directors has done a fine job and performed beyond my expectation In 2018. The Board of Commissioners met on 6 occasions, and jointly 5 times with the Board of Directors to examine and review the company’s performance. The Board of Commissioners also reviewed the work of the Audit Committee and Nomination and Remuneration Committee and a full account of the work of the governance committees is included in this report.

P R E S I D E N T C O M M I S S I O N E R ’ S L E T T E R

CHAPTER 1 REPORTS


Human Capital Remains Key to Growth In this unfolding age of robotics and Artificial Intelligence,

people smarts and know-how will remain crucial even as machines will take over many of society’s menial labors. This means that we will have to equip our youth entering into the workforce, as well as retrain millions of people, with the new sets of skills that will enable them to thrive in the digital world. It is a tall challenge for any emerging economies such as Indonesia, but one that must be surmounted. Technology waits for no one.

Saratoga has always placed a strong emphasis on the continuous development of its people, instilling them with skills and leadership values that keep them motivated to excel. We are also active in sharing and imparting these skills among the people we work with in our investee companies. Outside of Saratoga, we have made education a cornerstone of our corporate social responsibility programs, in recognition of the crucial role that education plays in promulgating sustainable development and long-term economic growth of a nation.

Looking AheadWe remain optimistic about Indonesia’s economic

future. Notwithstanding the outcome of the presidential and legislative election in April 2019, Indonesia should capitalize on its strong momentum of growth, which includes a strong demographic profile of 260 million people of whom more than half are below 35 years of age – only approaching their peak productive years; the largest economy in ASEAN, one of the fastest growing regions of the world; and largely untapped natural resources of which Indonesia could add significant value to, going forward.

And so I am pleased to close my report by reiterating the fact that there is not a better time to invest in Indonesia than today. We stand ready to support your investment goals with our in-depth knowledge of Indonesia, its markets and business landscapes.

We thank the Management and employees of Saratoga and our investee companies, all of who have done reasonably well under the challenging conditions of 2018. We also thank our shareholders and all other stakeholders for their continuing trust and support. May God bless us all as we look ahead to a bright future for the world, for Indonesia and Saratoga.

For and on behalf of the Board of Commissioners,

E D W I N S O E R Y A D J A Y APresident Commissioner



M I C H A E L S O E R Y A D J A Y APresident Director, provides an overview of the Saratoga portfolio

and explains how the company is still primed for growth even as it underwent a challenging year in 2018.

R E P O R T SO F T H E B O A R D O F D I R E C T O R S

The macroeconomic condition in 2018 has proven to be an eventful year for Indonesia on a number of fronts. The GDP grew by 5.17% from 2017, which is in line with the consensus from the beginning of the year. However, the rising interest rate both in Indonesia and the US, the weakening of the Rupiah against the US dollar, and the volatile movement of the commodities have created uncertainty and obstacles to the investment environment in Indonesia. In addition, on a humanitarian level, Indonesia experienced a series of earthquakes, tsunamis and volcanic eruptions that took heavy tolls on human lives, properties and livelihoods.

In the midst of these challenges, we chose to be conservative, but yet nimble and opportunistic in the way we made decisions in 2018. Reflecting this caution, a good portion of our time and resources were spent on helping our existing portfolio companies. As an active investment manager, we don’t think our work is done the moment we deploy investment capital, in fact, the hard work begins right after. In countless occasions, we took the time to review the business, identify issues and provide the best solution for the business. We continue to learn and grow through each challenge and are able to bring more value to the next business we partner with. I personally believe building a business is a life-long journey and I feel immensely blessed to always have my Saratoga colleagues beside me along the way.

Despite the challenges, we had a productive year in 2018. At the Saratoga level, we made one new investment in 2018 by way of PT Aneka Gas Industri Tbk. and towards the end of the year, divested one company in our portfolio, PT Batu Hitam Perkasa, minority shareholder of the Paiton Energy. On the investee company level, we have assisted PT Adaro Energy Tbk. in securing the funding for its acquisition of Kestrel mine asset in Australia, and PT Merdeka Copper Gold Tbk. in financing to acquire two mining assets in Wetar Island and Sulawesi, a producing and green-field copper and gold mine, respectively.

We continued to support the management of Awal Bros Hospital Group, our growing hospital chain that provides internationally accredited, world-class healthcare services to the increasingly affluent population of Indonesia. Saratoga’s role in the development of this business is to provide senior management personnel to work side-by-side with Awal Bros. executives, ensuring that our hospitals are run and managed professionally to the highest international standards.

Other major initiatives in 2018 include the continued efforts at PT Mitra Pinasthika Mustika Tbk. (MPMX), our diversified automotive and financial services group. These include the termination of the dealership agreement with the main principal, a change in the company’s top management, and a

CHAPTER 1 REPORTS



sale of one of the Group’s businesses at an attractive valuation. We believe that MPMX has what it takes to thrive in the future, especially on the strength of its significant market leadership of Honda motorcycles that MPMX enjoys in East Java.

Last but not least, as we have mentioned in the previous reports, we are keenly aware of the potential upside of the technology sector and have started adding exposure via fund investments some time ago. As of the end of 2018, we have invested through two of our partners: Skystar Capital and Provident Capital.

My fellow Director, Andi Esfandiari, who oversees Saratoga’s existing portfolios, will provide highlights of the performances of some of our investee companies in his following report. Allow me now to briefly touch on the financial condition of Saratoga in 2018.

Along with our cautious approach to investing, we have remained prudent with our financial management, maintaining a strong balance sheet. Even as our financial health remains robust, we continue to maintain a healthy leverage ratio, and thereby positioning us in good stead to capitalize on investment opportunities that may arise in the future. In addition, our strong balance sheet is complemented by our growing dividend income from our portfolio companies.

My fellow Director, Lany D. Wong, who joins Saratoga as Chief Financial Officer in June 2018, will elaborate further on our results of operations and financial condition in 2018. She will also highlight the current economic conditions of Indonesia, and what Saratoga can expect as we move resolutely forward in 2019 and beyond, committed to further growth.

Saratoga has remained true to its basic investment strategy that aims to capitalize on key sectors of the Indonesian economy with strong growth potential over the long term. We have not wavered from our three key choices of natural resources, infrastructure, and consumer good and services sectors. Moreover, we continue to focus our investment preferences on companies that have the potential to become market leaders based on their unique business value propositions.

Despite challenges in 2018, Saratoga remains the premiere investment holding company that is most regarded for our integrity, discipline, prudence, and not least of all, creative investment solutions. We are committed towards harvesting more growth in the future, and we continue to share these opportunities with our shareholders, our business partners and the Saratoga group of companies.


R E P O R T O F T H E B O A R D O F D I R E C T O R S

A N D I E S F A N D I A R I Portfolio Director, provides a review of key developments

in Saratoga’s investment portfolio.

Notwithstanding the challenging conditions that many of us encountered in 2018, it was still an exciting year of growth for Saratoga and our stable of investee companies. I am extremely proud of how they performed and how resilient they were in weathering through the challenges upon them. Below are some of the highlights.

PT Merdeka Copper Gold Tbk. (MDKA). As one of the most exciting discoveries and developments of any gold and copper mines in the world in recent years, MDKA has proven itself to be truly worth its weight in gold. Since its first gold pour in April 2017, it has moved quickly in 2018 to increase installed capacity for gold and silver production at the Tujuh Bukit Mine in East Java; made significant progress in the porphyry development of the same mine; and acquired two new mining areas with substantial ore resources outside of Java.

By year-end 2018, MDKA was on schedule with its oxide expansion project that will double installed ore processing capacity by the first quarter of 2019. MDKA also made good progress of its porphyry project pre-feasibility work at the Tujuh Bukit Mine where construction for the oxide expansion is now ongoing. The porphyry copper and gold mineral resources at the Tujuh Bukit Mine are among the world’s largest deposits, the operations of which make MDKA truly a world-class mining company.

In addition to organic growth, MDKA has also sought for long-term growth potential from acquisition. In May 2018, the company acquired Finders Resources Limited, an Australian-listed mining company and in November 2018, MDKA acquired a greenfield mining asset in Sulawesi.

We are fully confident of MDKA’s capabilities, and truly excited about its long-term growth prospects.

PT Mitra Pinasthika Mustika Tbk. (MPMX). Another significant development in our investee companies was the continuing transformation of the MPMX to become more efficient and growth-oriented. In addition to a management change, MPMX also streamlined its business by closing its car dealership business and divesting the lubrication business to ExxonMobil at an attractive valuation. We believe that MPMX will do much better by focusing on its market leadership in motorcycle sales and services, combined with related financing and insurance services that currently form part of the MPMX. There is much potential to be had in MPMX and we continue to be confident in the group businesses going forward.

Awal Bros Hospital Group. We also see excellent long-term growth potential in the healthcare business of Awal Bros Hospital Group, the growing hospital chain that provides world-class hospital services at affordable prices. We believe that this is the right time to develop a stake in the hospital business for several reasons. First, there is a growing number of middle-class Indonesians who are now able to afford and demand for high quality healthcare services. Secondly, because of this growing affluence, there has also been a growing number of insurance companies – including major global insurers – that offer healthcare plans for both individuals and corporations. Thirdly and perhaps more importantly, despite the strong growth in the number of hospital rooms in Indonesia in recent years, there are simply not enough hospitals to care for over 130 million Indonesians who are currently the middle class. Never mind some seven million Indonesians who, according to World Bank statistics, move up the social ladder into the middle-class segment each year.

Mulia Bosco Logistik (MBL). As in healthcare, we see equally excellent prospects for MBL, which under the co-arrangement of Saratoga, has become a successful merger between one of the leading cold storage and transportation service providers – a perfect combination to serve the robust F&B industry in Indonesia. The company’s combined services of cold storage and transportation have enhanced its business value proposition, attracting major customers from the F&B industry. At issue now is how to satisfy customers more, and more. The company is doing a good job at it, and continually seeks to find ways to improve its management and service quality.

CHAPTER 1 REPORTS


L A N Y D . W O N G Finance Director, provides an update on the economy,

earnings, and the financial position of Saratoga for the year, and as at 31 December 2018

Deltomed Laboratory. It’s been almost two years since we welcomed Deltomed to our investment portfolios. In 2018 we continued to support Deltomed in its business expansion, marketing and distribution strategy and product development. The sector of the health supplement and herb medicine is young and growing and we have full confidence that Deltomed will continue to deliver outstanding results for the years to come.

Last but not least, we need to mention our two stalwart investee companies – PT Adaro Energy Tbk. and PT Tower Bersama Infrastructure Tbk. – both of which are well-established blue-chip companies with strong revenue streams from their considerable assets. Despite the decline of their stock prices in 2018, these two companies have remained well managed and able to sustain both earnings and profitability.

Our investment portfolio, while mainly focused on the three key sectors as defined by our growth strategy, nevertheless runs the gamut of both industrial and individual needs. We are currently invested in healthcare services, energy consumption, food storage, herbal medicines, mobile connectivity, precious metals, transportation, apparels, lifestyle watches, and many more.

There is no doubt that Saratoga will benefit from the continuing growth of the Indonesia economy, as we continue to strive to provide high-quality services to growing industries, businesses and individual consumers.

Indonesia maintained its annual GDP growth of around 5.17% in 2018, as it had done over the past several years. The year was notable for the tightening monetary policy of the US Federal Reserve Board, which induced capital outflows from so-called emerging market countries, which in turn exposed the vulnerabilities of their currencies. The Indonesian rupiah was no exception. It fell against the US dollar to a value over Rp15.000 to the US dollar and prompted Bank Indonesia to raise the benchmark interest rate of the rupiah by as much as 150 basis points.

Capital outflows from Indonesian equities and bonds affected the capital markets negatively, pulling down the Jakarta Composite Index (JCI) of the Indonesia Stock Exchange to below 5,600, having reached its highest record of 6,600 in 2018.

The degree of capital flight from emerging markets was exacerbated by fears of an escalating trade war between the US and China. However, those fears subsided when the two opposing sides declared a temporary truce during the G-20 meeting in Argentina in December 2018. Almost immediately, global capital flows returned to emerging markets, including Indonesia. The rupiah strengthened to close at nearly Rp14.000 to the US dollar, while JCI climbed back to around 6,200 by year-end 2018.

These episodes reminded us of how global economies are closely intertwined and how Indonesian interest rate and currency can be vulnerable during the turbulent times. In 2018 we took a cautious approach when we review our balance sheet. We try to manage the interest rate risk by fixing part of the interest payments, and FX risk by applying hedging derivatives. We try to keep the leverage ratio at a healthy level, and keep our options open to various funding sources, either via equity or debt market. In the last quarter of 2018, we have also executed some early repayment of our borrowings to improve our debt maturity profile in 2019 – from USD 87 million to USD 75 million, at this level our obligation is easily covered by our dividend income. This again reflects our prudence approach in managing our debt and cash flow.

Saratoga’s Results of Operations and Financial Condition

A cyclical downturn in commodity prices as well as a decline in the stock valuation of some of our listed investee companies had detrimental effects on Saratoga’s net asset valuation and earnings in 2018. The net asset value of our investment portfolio decreased by 29.45%, from IDR22.36 trillion in 2017 to IDR 15.77 trillion in 2018. Earnings fell significantly as we also incurred an unrealized net loss of IDR 6,194 billion as at year-end 2018, mainly as a result of declining stock prices of our listed investee companies on the Indonesia Stock Exchange. Since then, market has rebound and share prices moved in our favor.


20

M A N A G E M E N TD I S C U S S I O N A N D A N A L Y S I S

of the Company's Results of Operations and Financial Condition

for the Year Ending 31 December 2018

We are the first company in Indonesia that implemented PSAK 65 accounting treatment, a better and more transparent way for us to

express the financial performance.

CHAPTER 2 MANAGEMENT DISCUSSION & ANALYSIS


The Management Discussion and Analysis chapter should be read in conjunction with the Company’s consolidated financial statements which form an integral part of this annual report.

Saratoga presented its financial statement with the implementation of PSAK 65 - exception on consolidation (equivalent to IFRS 10) since 2016, which is applicable only for investment entity. The implementation of this standard is to reflect the business model of Saratoga as an investment holding company. In terms of the valuation of the investee companies, closing price is used for public-listed companies, internal valuation for private companies and acquisition cost for early stage investments.

In 2018, Saratoga has opted to conduct an early adoption of PSAK 71 – Financial Instruments (equivalent to IFRS 9) as a replacement of PSAK 55. The reason for the early adoption is to align the treatment of our investment portfolio. Prior to the implementation, the mark-to-market value of the valuation of the Available-for-Sale Investment (ownership less than 20%) was recorded in the Other Comprehensive Income in Balance Sheet, while under the new standard, this is reclassified to Profit and Loss statement. In connection with this change the Statements of Financial Position and Profit and Loss is restated for 2017 to bring a comparable result for our financial statement in both years. There is no implication to the total equity’s value from shareholders’ perspective since the adjustment is a reclassification exercise.

Statements of Profit or LossThe Profit or Loss are derived by two major components:

1. Net loss on investment in equity securitiesA net loss on investment in equity securities of IDR

7,251 billion was posted in 2018. The loss was mainly attributed to the decline of the share price movement of Tower Bersama (TBIG) – IDR 4.2 trillion and Adaro Energy (ADRO) – IDR 3.1 trillion. The loss was lessened by the increase of the share price of Merdeka Copper Gold (MDKA) – IDR 1.1 trillion. Though a heavy loss was incurred in 2018 it is worth pointing out that the loss was unrealized and has no implication to the company’s cash flow. The share prices of ADRO and TBIG have bounced back since early 2019 while we are writing the report and we continue to be confident in the business performance of our investee companies.

The year on year (YOY) comparisons are as follow:Table showing increase/decrease and one off adjustment in 2018, variance as well.

IDR Billion

Investee companies 2018 2017 Increase % (decrease)

PT Tower Bersama Infrastructure Tbk (4.213) 2.128 (6.341) -298%

PT Adaro Energy Tbk (3.140) 479 (3.619) -756%

PT Merdeka Copper Gold Tbk 1.130 105 1.025 976%

PT Mitra Pinasthika Mustika Tbk (141) 325 (466) -143%

PT Provident Agro Tbk (217) (405) 187 -46%

Others (670) (275) (395) 143%

TOTAL (7.251) 2.357 (9.608) -408%

2. Dividend, Interest and Investment Income

DividendIn 2018, Saratoga posted IDR 900 billion of dividend

income, a record amount since Saratoga became a publicly listed company. The breakdown of the dividend is as follows:

IDR Billion

Investee companies 2018 2017 Increase % (decrease)

PT Adaro Energy Tbk 483 295 188 64%

PT Tower Bersama Infrastructure Tbk 251 221 30 14%

PT Provident Agro Tbk 117 79 38 48%

PT Batu Hitam Perkasa 40 - 40 N/A

PT Nusa Raya Cipta Tbk 7 5 2 39%

PT Deltomed Laboratories 2 - 2 N/A

PT Mitra Pinasthika Mustika Tbk - 282 (282) N/A

TOTAL 900 882 18 2%

Adaro and Tower Bersama continue to be our strong performer in the back of strong operation and financial result in both companies. We also want to highlight that we have booked gain of IDR 175 billion from sale of our investments, which brings a total of IDR 1.1 trillion income.

Operating expensesAs an investment company, Saratoga maintains a

tight budget control. Operating cost mainly came from compensation and benefit of IDR 138 billion in 2018 (vs. IDR 213 billion in 2017). By comparison, operating cost in 2018 was 0.74 basis point of Saratoga’s total investment value (Assets under Management –AUM) of IDR18.73 trillion as at year’s end. The decline in operating cost was mainly attributed to the reduction of transaction costs in 2018 in relation to the divestment activities.


NET ASSET VALUATION AS PER 31 DECEMBER 2018

INVESTMENTS

NATURAL RESOURCES

PT Adaro Energy Tbk IDR 15,24% 1.215 5.923 15.19% 1.860 9.037 -3.114 -34%

PT Provident Agro Tbk IDR 44,88% 260 831 44.88% 328 1.048 -217 -21%

Sihayo Gold Limited AUD 13,33% 0,02 48 13.33% 148 34 14 43%

Interra Resources Limited SGD 13,54% 0,03 26 15.67% 628 50 -24 -48%

PT Merdeka Copper Gold Tbk. IDR 20,76% 3.500 3.025 18.94% 2.140 1.447 1.578 109%

Non listed companies

PT Agro Maju Raya 25.00% Fair Value 25.00% Fair Value

PT Agra Energi Indonesia 30.00% Fair Value 30.00% Fair Value

Non listed companies subtotal IDR 107 27 80 296%

Others IDR - 380 -380 -100%

INFRASTRUCTURE

PT Tower Bersama Infrastructure Tbk. IDR 32,70% 3.600 5.341 32,51% 6.425 9.465 -4.124 -44%

PT Nusa Raya Cipta Tbk. IDR 7.12% 386 67 7.12% 380 66 1 2%

PT Seroja Investment Limited 23.26% 0.03 27 23.26% 0.04 38 -11 -29%


PT Tenaga Listrik Gorontalo 46.25% Fair Value 46.25% Fair Value

Non listed companies subtotal IDR 69 12 57 475%

Others IDR 185 359 -174 -48%

CONSUMER

PT Mitra Pinasthika Mustika Tbk. IDR 48.62% 905 1.964 48.62% 970 2.105 -141 -7%

PT Aneka Gas Industri Tbk IDR 6,92% 680 144 <5% 605 1 143 10.253%


PT Bumi Hijau Asri 99,99% Fair Value 99,99% Fair Value

PT Mulia Bosco Logistik 7.50% Fair Value 7.50% Fair Value

PT Gilang Agung Persada 5.83% Fair Value 4.17% Fair Value

PT Deltomed Laboratories <10% Fair Value <10% Cost

PT Famon Awal Bros Sedaya 3.06% Fair Value 3.06% Cost

Non listed companies subtotal IDR 517 584 -67 -11%

Others IDR 635 187 448 240%

Sum of investee companies 18.909 24.840 -5.931 -24%

- Debt 3.920 3.394 526 15%

+ Cash 783 910 -127 -14%

Net Asset Value 15.772 22.356 -6.583 -29%

Net Asset Value Per Share (IDR) 5.814 8.240 -2.427 -29%

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PREVIOUS YEAR END 31 December 2017

BI MID RATE PER 31 DECEMBER 2018

USD/IDR 14.481

AUD/IDR 10.211

SGD/IDR 10.603

BI MID RATE PER 31 DECEMBER 2017

USD/IDR 13.548

AUD/IDR 10.557

SGD/IDR 10.134

DISCLAIMER: The information contained in this document is intended solely for the use of our internal reference. We used conservative method to do the above calculation. There might be some difference of calculation against the market value. We make no representations or warranties, express or implied, with respect to the information herein.



CONSOLIDATED LIABILITIES

CONSOLIDATED LIABILITIES IDR Billion

Description 2018 2017 Increase (decrease) %

Accrued expenses 4 4 13%

Income tax payable 47 131 -64%

Other taxes payable 2 13 -85%

Unearned revenue 5 1 282%

Borrowings 3.938 2.465 60%

Exchangeable bonds - 959 -100%

Derivative financial liabilities 13 - N/A

Deferred tax liabilities, net 122 752 -84%

Employee benefits liabilities 20 17 16%

Total liabilities 4.151 4.342 -4%

Our consolidated liabilities amounted to IDR4,151 billion in 2018, compared to IDR4,342 billion in 2017. The decrease was mainly due to decline in deferred tax liabilities as a result of the decline in Adaro shares (for indirect holding).

In terms of financing activities, the following took place in 2018:• Redemption on Exchangeable Bonds with nominal amount

of USD68.7 million• Repayment of Natixis bilateral borrowing – USD26.25

million• Repayment of ING bilateral borrowing – USD20 million• Repayment of MUFG borrowing – IDR 30 billion• New drawdown from Bank of Tokyo Mitsubishi of IDR275

billion• New drawdown from HSBC of USD 50 million

Ability to Service DebtThe debts of Saratoga and its subsidiaries are cautiously

managed to ensure that they are aligned with the repayment capability. As of 31 December 2018, the total consolidated debt was at IDR 3,938 billion, consisting of USD 176.8 million and IDR 1,360 billion.

The debt maturity profile is shown below:

2020 2021

MATURITY PROFILE AS PER 31 DECEMBER 2018 IDR Billion

-40 -12.3

20222019

-1,086

-614

-854

-497 -40

2023

-869

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

CONSOLIDATED ASSETS IDR Billion


Cash and cash equivalents 782 902 -13%

Restricted cash 1 8 -94%

Receivables, net 366 623 -41%

Prepaid taxes 1 - N/A

Advances and prepaid expenses 2 13 -87%

Investment in equity securities 18.730 24.755 -24%

Advances for investment in equity securities 97 94 4%

Equity share swap - 55 -100%

Derivative financial assets 50 52 -4%

Investment properties 82 123 -33%

Other assets 4 5 -17%

Total assets 20.115 26.630 -24%

CONSOLIDATED ASSETCash and Cash Equivalents & Restricted Cash

The consolidated cash and cash equivalents consisted of cash in hand and in banks (third parties) both in IDR and USD. Cash and cash equivalents amounted to IDR 782 billion as of end of 2018, which reflected the cash holding in Saratoga and its consolidated non-operating investment entities.

Receivable from Third PartiesReceivables from third parties mainly consist of receivables

from investee companies and business partners related to an investment placement scheme. Saratoga charges interest on some of these receivables, and may from time to time convert the receivables into stakes in the investee company. Since these receivables only apply to newly start-up companies, the duration of the receivables from third parties can be longer than a year.

Collectability of ReceivablesReceivables from third parties could be payable if the

investee company can fund the operation themselves. Alternatively, it is also common to convert the receivables into stake-ownership in the investee company.

Investment in Equity SecuritiesThe decline in our Investment in equity securities was

mainly driven by the decrease in share prices of Tower Bersama and Adaro as mentioned before. However the loss was lessened by the increase of the share price of Merdeka Copper Gold (MDKA).


In order to service debt, Saratoga maintains several sources of cash flow:

1. Dividend IncomeSaratoga recognized a record dividend income of IDR

900 billion in 2018, a slight increase from 2017. The dividend income is 3.2x of our interest expense, which reflects our low interest coverage ratio and this also reflects that our debt capacity can still grow, if required . The detail of our dividend income was stated in Revenue section.

2. DivestmentDivestment from our investment holdings has provided

immediate cash flow to undertake the repayments of some of the borrowings. In the last quarter of 2018, Saratoga successfully divested Batu Hitam Perkasa (BHP) – a shareholder of Paiton Energy. The divestment has generated a cash flow of 9 million USD.

3. Fixed IncomeSaratoga also received interest income from available

liquidity deposited in banks, which contributed to an income of IDR 58 billion in 2018.

Capital Structure and Management Policies Concerning Capital Structure

As an investment company, Saratoga manages capital and debt structure prudently to align with its investment horizon as reflected in the maturity profile of the Company’s debts.

DEBT EQUITY

NET DEBT / NET ASSET VALUES AS PER 31 DECEMBER 2018

IDR Billion

NET DEBT

3,137

NET ASSET VALUE

15,772

DEBT / EQUITY AS PER 31 DECEMBER 2018

IDR Billion

3,938

15,655

(25% Equity)

(20% NAV)

CONSOLIDATED EQUITY IDR Billion


Share capital at par value Rp100 (whole Rupiah)

per share, authorized capital 9,766,680,000 shares,

issued and fully-paid capital 2,712,967,000 shares 271 271 0%

Additional paid-in capital 5.185 5.185 0%

Treasury shares (4) (5) -26%

Accumulated share-based payments 46 31 50%

Difference in translation of financial statements in

foreign currency 27 27 0%

Other equity components 24 24 0%

Retained earnings 10.106 16.500 -39%

Equity attributable to owners of the Company 15.655 22.033 -29%

As of the end of 2018, the Net Debt ratio to NAV was 20%, while our Debt to Equity ratio was 25%, both are considered low from capital structure, which reflects our prudent measure in our debt management. A healthy ratio is crucial in our debt management considering the volatility generated in our listed investment portfolios as well.

CONSOLIDATED STATEMENTS OF CASH FLOWCash Flow from Operating Activities

The major inflow of the cash in 2018 was dividend income (from cash flow perspective) of IDR 940 billion and proceeds from divestments of IDR 558 billion. And the major outflow of the cash was purchases of equity securities 1.6 trillion and interest cost of IDR 273 billion. As a result the net cash flow used in operating activities was IDR 379 bilion.

Cash Flow from Investing ActivitiesThere is no significant transaction to be disclosed in this

section.

Cash Flow from Financing ActivitiesIn 2018, net cash flow from financing activities amounted to

IDR 168 billion, mainly as a result of the following activities: • Drawdown of borrowings amounting to USD 50 million

and IDR 275 billion.• Repayment of our borrowings amounting to USD 145

million (including the settlement of the Exchangeable bonds.

• Utilization on our short term facility amounting to USD 20 million for a couple of times during the year which involved drawdowns and repayments to bridging the gap on our investments.



SUBSEQUENT EVENTSFor events subsequent to 31 December 2018, please refer

to Note 25 – Exhibit E/68 of the Consolidated Financial Statements of the Company in the Financial Report section of this Annual Report.

COMPARISON BETWEEN TARGET/PROJECTION AT THE BEGINNING OF THE YEAR AND ACTUAL RESULTS OF OPERATIONS.

Saratoga remains highly selective in new investments from the numerous opportunities that arise at any given point of time. Each year, Saratoga looks at, and considers, around 100 opportunities and decides on, in average, one to two new investments.

In 2018, Saratoga made a new investment from 91 potential investments reviewed in line with the Company’s annual plan.

In terms of the operating cost, Saratoga continues to maintain a highly efficient organizational structure in order to keep operating expenses at a manageable level. One of the major expenses, namely legal and consulting fees, is inherent in the nature of Saratoga’s business, where financial consultants and lawyers are hired to perform due diligences on prospective investments and prepare legal documents in the investment and divestment processes.

Total operating cost in 2018 amounted to IDR 138 billion, which was largely in line with the budget for the year. This is lower in comparison with previous year, due to transaction costs incurred for the sale of our investments in 2017 .

Target for next yearSaratoga continues to look at new opportunities, and

aims to make one or two new investments in 2019. A few potential investments are being looked at in the pipeline, consisting of opportunities across the three key sectors of natural resources, infrastructure and consumer.

Marketing aspects of the Company’s products and services.

As an investment company, Saratoga does not produce any consumable products or services that need to be marketed. Therefore, the Company does not provide any marketing activities. All marketing activities are conducted through the investee companies.

CONSOLIDATED STATEMENT OF

COMPREHENSIVE INCOME IDR Billion


Net (loss) gain on investment in equity securities (7,251) 2,357 -408%

Dividend, interest and other investment income 1,147 1,540 -26%

Other income 15 34 -56%

Changes of fair value on investment properties 1 (23) -105%

Operating expenses (138) (213) -35%

Bad debt expense (37) (45) -18%

Other expenses (49) (22) 123%

Net loss on exchange rate differences (150) (28) 440%

Gain on fair value of equity share swap 24 12 98%

Gain (loss) on fair value of exchangeable bond 7 (66) -111%

Net gain on other derivative financial instruments 28 52 -46%

Interest expenses (282) (348) -19%

(Loss) Profit before tax (6,685) 3,251 -306%

Income tax benefit (expense)

Current (81) (183) -56%

Deferred 631 94 572%

550 (89) -719%

(Loss) profit for the year (6,135) 3,162 -294%

Total other comprehensive income (loss) 1 (2) -169%

Total comprehensive (loss) income for the year (6,134) 3,160 -294%

(Loss) profit for the year attributable to:

Owners of the Company (6.195) 3.274 -289%

Non-controlling interests 60 (112) -153%

(6,135) 3,162 -294%

Total comprehensive (loss) income for the year attributable to:

Owners of the Company (6,194) 3,272 -289%

Non-controlling interests 60 (112) -153%

(6,134) 3,162 -294%

INVESTMENT IN EQUITY SECURITIES IDR Billion


Listed companies

PT Adaro Energy Tbk (*) 5,924 9,037 -34%

PT Tower Bersama Infrastructure Tbk. (*) 5,341 9,465 -44%

PT Merdeka Copper Gold Tbk. (*) 3,025 1,617 87%

PT Mitra Pinasthika Mustika Tbk. 1,964 2,105 -7%

PT Provident Agro Tbk. 831 1,048 -21%

PT Aneka Gas Industri Tbk. 144 1 10.253%

PT Nusa Raya Cipta Tbk. 67 66 2%

Sihayo Gold Plc, Australia 48 33 45%

Seroja Investment Limited, Singapore 27 38 -29%

Interra Resources Limited, Singapore 26 50 -48%

Finders Resources Limited, Australia - 119 -100%

Others 5 228 -98%

Non-listed entities 1,328 948 40%

Total 18,730 24,755 -24%

(*) include indirect ownership



I N V E S T E E C O M P A N Y

H I G H L I G H T

CHAPTER 3 INVESTEE COMPANY HIGHLIGHTS


There were exciting developments in asset acquisitions by PT Merdeka Copper Gold Tbk. (MDKA), PT Adaro Energy Tbk. (ADRO), and PT Tower Bersama Infrastructure Tbk. (TBIG).

MDKA made strategic acquisitions of two mining assets in 2018, acquiring majority stakes in Finders Resources, which owns an operating copper mine on Wetar Island in Maluku Barat Daya Regency, and the Pani advanced gold exploration project in Pohowatu Regency, Gorontalo Province.

Both assets hold tremendous long-term upside potentials. The Wetar copper project has an installed capacity of up

to 25,000 tonnes of copper cathode per annum. An updated Mineral Resource and Ore Reserve Estimate as at 31 December 2018 placed Wetar’s resources at 196,000 tonnes of copper metal contained in a 9.81 million tonnes of mineral resource estimate at an average grade of 1.99%copper, and 93,000 tonnes of copper metal contained in 3.32 million tonnes ore reserve estimate at an average grade of 2.81% copper.

The Pani advanced gold exploration indicates substantial gold resources. A JORC Compliant Mineral Resource Estimate in 2014 placed Pani’s resources at 2.37 million ounces of gold contained in 89.5 million tonnes of ore.

Turning to ADRO, the company together with EMR Capital Ltd, a specialist mining private equity firm, completed the acquisition of Rio Tinto’s 80% interest in the Kestrel Coal Mine, a world-class high-quality metallurgical coal asset with a long-life resource base in the Bowen Basin coal field of Central Queensland, Australia. As of its latest resource update in 2017, the Kestrel Mine has marketable reserves of 146 million tonnes and resources of 241 million tonnes of these high-quality metallurgical coals.

This acquisition marks a significant milestone in ADRO’s strategic expansion of its metallurgical coal portfolio that began with Adaro MetCoal. Both the Adato MetCoal and Kestrel mines will strengthen ADRO’s foothold in the metallurgical or coking coal market, sustaining ADRO’s growth over the long term.

In a separate development, TBIG, one of the largest and leading shared cellular telecommunication Base Transceiver Station (BTS) tower services providers in Indonesia, made two acquisitions in 2018, Gihon Telekomunikasi Indonesia (GHON) and Visi Telekomunikasi Infrastruktur (GOLD). As of the end of 2018, TBIG owns 50.12% shareholding of GHON and 51% of GOLD. These acquisitions allowed TBIG to increase its portfolio of towers and tenants.

Together with the investee companies, Saratoga navigated through a challenging year in 2018 with a series of carefully orchestrated steps that consolidated our collective strength further, nurtured growth, and positioned strategically to capitalize on Indonesia’s exciting future.

These steps comprised of acquiring prospective new assets, monetizing assets through strategic divestments, growing our businesses, and entering new technology sector.

ACQUIRING NEW ASSETSInvestee companies: MDKA, ADRO, TBIG


DIVESTMENTSInvestee Companies: MPMX, PALM

Two investee companies, PT Provident Argo Tbk. (PALM) and PT Mitra Pinasthika Mustika Tbk. (MPMX), have made successful divestment transactions of their assets in 2018. Here are the details of the divestments.

We saw an excellent opportunity to divest 100% of MPMX’s highly valued lubricant business, PT Federal Karyatama (FKT), to the global energy company, ExxonMobil. The divestment generated USD436 million for MPMX, enabling it to post a positive cash balance of over IDR4 trillion as of the end of 2018, and strengthening the business considerably to reduce company debts, grow existing businesses, and position MPMX ahead to invest in new growth areas.

Turning to PALM, due to the persistent challenges of the palm oil environment in the past few years, the company made a strategic decision to divest further its plantation assets at a premium to the larger players where the scale of the economy matters. The divestment provided PALM with strong cash flow and allowed the company to explore new business opportunities.

CHAPTER 3 INVESTEE COMPANY HIGHLIGHTS


GROWING BUSINESSES Investee Companies: Mulia Bosco Logistics, Awal Bros

Hospital Group, Deltomed Laboratories

Growing the businesses of our investee companies remains a central tenet of Saratoga’s investment model, in which we invest, grow and monetize companies with long-term growth prospects.

In 2018, Saratoga’s main focus was on the continuing development of the consumer-based businesses. This includes PT Mulia Bosco Logistics (MBL), the cold storage and refrigerated transportation services provider; PT Awal Bros Hospital Group (FABS), the growing hospital chain group; and PT Deltomed Laboratories (Deltomed), a pioneering developer of herbal-based health supplement products.

MBL has grown the number of its refrigerated trucks, warehouses and coverage areas, and will continue to do so with the aim to claim market leadership in its areas of operations in the not too distant future. FABS chain has begun to build more hospitals and looks forward to increasing its footprints in the fast-growing healthcare services business in Indonesia. Not to be outdone, Deltomed is also eyeing significant growth

opportunities. It continues to pursue new product development fervently, increase the number of outlets selling Deltomed brands and products, as a result of which, the company has benefitted from strong transaction growth. We believe that Deltomed is barely scratching the surface of the unfolding market preferences toward herbal healthcare treatment, with long term growth opportunities.

Indeed, Saratoga sees exciting growth opportunities from Deltomed and all of its consumer-based businesses.

VENTURING INTO NEW AREASIt has become obvious that the so-called 4.0 industry is

already upon us, and reshaping the way people around the world live, work and play. Indonesia is no exception, where on-line generated businesses are proliferating and harnessing phenomenal growth.

Through two platforms managed by Provident Capital and Skystar Capital, Saratoga has since 2017 begun to invest in these technology-driven start-ups in various business areas. Suffice to say that we are cognizant of the exploding new technology sector and have placed one foot firmly in these growing new ventures.

30

H U M A N R E S O U R C E S A N D

C O R P O R A T E S O C I A L R E S P O N S I B L I T Y

CHAPTER 4 HUMAN RESOURCES AND CORPORATE SOCIAL RESPONSIBLITY


HUMAN CAPITALEmployees of Saratoga fully share the vision and mission of the Company, which

are to be a world-class active investment company, and the partner of choice for investors to partake in the dynamic growth of Indonesia.

To that end, our people understand and embrace the challenges facing them as both individuals and dedicated professionals. We rise to the challenge, pushing individual limits, and embracing opportunities to broaden and improve their skills, working capacities and leadership qualities.

Deepening the Talent PoolThe ever-growing strength of Saratoga includes a deepening talent pool, as the

group continues to invest in the development of employees. In 2018, Saratoga’s policy on employee development has been enhanced, encouraging every employee at managerial level to proactively seek areas for his or her personal development. These employees were encouraged to attend at least one training session per year in order to refresh their skills and know-how – resulting in a significant increase in development spending.

Highlights of training and workshop programs organized in 2018 are as follows:

As we continue to strengthen our resources in these exciting times of growth in

the Indonesian economy, the quality of human capital is first and foremost in

Saratoga’s strategy and efforts to achieve sustainable long-term growth.

TRAINING PROVIDER ATTENDEE

Certified Management Accountant IPMI Head of Internal Audit International Business School

Corporate Tax Management I K P I Head of Tax

Tax Planning I K P I Head of Tax

Law of Tax Consultant, Tax Facilities I K P I Head of Tax and Law Enforcement

Big Data of Taxation Usage by Directorate I K P I Head of Tax General of Taxes on axpayers and Transfer Pricing Audit Practice in Indonesia

Building a basic Discounted Sukarnen (In house) Accounting Associate, Cash flow Basic Accounting Officer and Internal Audit Officer

Brevet A, B A I A Accounting Clerk

General Affair Management Synergis Training Senior Administration Clerk & Consulting


In June 2018, Lany D. Wong was recruited as our new Chief Financial Officer (CFO) and succeeded Jerry Ngo as our former CFO. She is a CFA Charter Holder with over 20 years of experience as a financial executive; and expertise in fund raising, financial control and liability management. She has also had extensive exposures to structured financing, project financing and various capital market deals.

As of 31 December 2018, Saratoga employed 57 people and employment turnover was 3.1% or 2 people.

A breakdown of employee numbers by Organization Level, Education and Age is as follows:

NUMBER OF EMPLOYEES BY ORGANIZATION LEVEL

Organization Level 2018 2017

Director 3 3

Manager & Supervisor 31 27

Staff & Non-Staff 23 22

Total 57 52

NUMBER OF EMPLOYEES BY EDUCATION

Education 2018 2017

Undergraduate or Higher 41 34

Diploma 5 5

Others 11 13

Total 57 52

NUMBER OF EMPLOYEES BY AGE

Age 2018 2017

> 50 12 8

41 – 50 17 19

31 – 40 21 19

< 30 7 6

Total 57 52

Our recruitment process selects people who embody traits that include integrity, passion and energy, competence and capability. Such characteristics are identified through several rounds of interviews and a series of technical tests.

Saratoga encourages its people to push their individual limits, and to continuously develop their skills, capacity and leadership. Opportunities are made available from time to time to undertake assignments in investee companies. Annual evaluations are used to determine where gaps can be filled through formal training or work experience. Constantly on the lookout for new talents, Saratoga offers attractive remuneration, benefits, and at management level, a share ownership scheme.

Placement programs As part of Saratoga’s development program, the Company

will assign its executives on temporary assignments in investee companies. This is an approach that benefits Saratoga and the investee company, as well as the individual assignee – a win-win for all concerned.

The following executives received temporary assignments to investee companies in 2018:

Name Position Assigned Investee

Company

Arif Qasimi Al Bone Chief Financial Officer Mulia Bosco Logistik

Ellie Turjandi Chief Financial Officer Agro Maju Raya

Leona Karnali Chief Operation Officer Awal Bros Hospital Group

Christopher Song Oey Marketing Advisor Awal Bros Hospital Group

Sales and Marketing Advisor Deltomed Laboratories

Actively Engaging and Enabling EmployeesSaratoga takes employee feedback into serious consideration

to ensure that we understand what our people need in order to accomplish their goals. An employee survey conducted at the end of 2018 indicated that greater attention was required to improve development opportunities and training. Nonetheless, the same survey also showed that employee engagement had improved significantly.

Manpower Planning, Recruitment and Selection Manpower needs are defined based on the gaps identified

in existing capability and future business requirements, which then become the basis for our recruitment and selection process, as well as employee development. We continuously analyze, evaluate and monitor our current manpower conditions in order to fill-up the manpower gaps.

HUMAN CAPITAL



Performance Management We take performance management seriously. Throughout

2018, as in previous years, managers and employees were actively involved in the performance management process, with both parties providing feedback, a two-way evaluation alongside formal coaching by the supervisor. Towards the end of the year, employees are assessed on their performances as part of their career-path developments, in line with Saratoga's growth.

Employee Health, Safety and Welfare Care for employee welfare is embodied primarily through

the terms of remuneration and engagement encompassing the basic salary and thirteenth month allowance, medical benefits for inpatient and outpatient care, and social security coverage. In 2018, the amount of medical benefits provided by the Company for the BoC, BoD and employees totaled approximately IDR1.4 billion.

The Company continuously reviews its competitiveness as an employer against the market to ensure employees remain focused on the core work assigned day to day. Saratoga also provides a performance-based bonus tied to both company and individual performances.

Senior Management is eligible to participate in a Long Term Incentive Program (“LTIP”) that aligns their interests with those of shareholders and to ensure their commitment to sustainable long-term growth for Saratoga. Further details of LTIP are presented in the Corporate Governance section of this Annual Report.

In maintaining a safe and healthy working environment, Saratoga complies with safety laws, standards and guidelines and recognizes the obligation to conduct all activities with proper safety precautions.

Establishing Trust and Synergy among Investee Companies

Saratoga believes that every great company is built on its own unique culture. We let our investee company management teams creatively build a culture that fosters a competitive advantage for their companies. However, at Saratoga we also believe that we can work smarter and better when we synergize, work hand-in-hand together, and build trust among ourselves.

Priorities in 2019Saratoga’s latest employee engagement survey indicates

that despite overall increase in employees’ positive perception towards Saratoga, communication between leaders and employees is an area that requires improvement. For 2019, we plan to use multiple communication strategy in order to create better communication between leaders and employees.

Furthermore, we will provide more training and development opportunities to all employees and continue to encourage their roles and responsibilities to develop their own career paths.

As part of our ongoing strategy for talent development, Saratoga will continue to offer valuable working experiences to our employees by providing unique assignments at our investee companies.


COMMUNITY EMPOWERMENT

Education DevelopmentSaratoga believes that Indonesia’s future lies in the young

people that make up the majority of its population. However, we also believe that the nation’s biggest challenge is how to educate its youth and provide them with the appropriate knowledge and skills to excel in today’s world.

Our education programs are dedicated to harnessing this powerful force to propel our nation towards a brighter future. We also aim to increase the opportunities for technical and vocational training, and ultimately to improve access to higher education.

Saratoga continues to support SMK Ora et Labora, a vocational school specializing in electrical technician training in Indonesia. Our engagement with SMK Ora et Labora is manifestation of such an investment. We believe the school will produce a continuous stream of trained electrical technicians for Indonesia’s growing power-generating sector.

In 2018, Saratoga supported the ribbon cutting ceremony to commemorate the completion of the first phase construction work of their school building, and provided the media relations team to boost the good news. In addition to that, several employees of Saratoga volunteered to serve on the School’s Board of Education as the Executive Committee, responsible for developing the school’s curriculum, students enrollment, also overseeing fundraising.

Saratoga also supports the Young Leaders for Indonesia (YLI) Program initiated by McKinsey & Company in 2008, targeting high performing students from leading universities in Indonesia and others. Th YLI Program aims to build future generations of leaders of Indonesia, specifically by enhancing leadership skills and developing networks. In 2018, Saratoga continued to support the Young Leader for Indonesia National Program in the Breakthrough Leadership Project (BLP), a three-month program involving six selected university students assigned to assist SMK OeL to develop an enrollment marketing communication strategy.

Aside from all the education programs, Saratoga also encourages its employees to volunteer as teachers, lecturers or coaches in various educational programs of non-profit organizations.

Indonesia’s core strength lies in its youthful population, in which

more than 50% of the nations’ 260 million plus population today

are below 35 years of age. However, this strength can also be a

liability; if Indonesia fails to equip its youth with the knowledge and

skills needed to thrive in today’s world, and that of the future.

CORPORATE SOCIAL RESPONSIBILITY

Saratoga focuses its corporate social responsibility (CSR) programs on enhancing education and the quality of people, especially the youth, as part of empowering local communities.

As part of this education process, we also place a strong emphasis on educating and increasing community awareness towards environmental conservation and the need to keep a clean and healthy environment in their homes and villages.

In addition to the above, we design our corporate social responsibility (CSR) programs with reference to Sustainable Development Goals (SDG).As such, our CSR programs have stood on three main pillars: Community Empowerment, Environment and Social & Cultural Development.

We continue to work collaboratively with our partners to achieve our long-term objectives. The SGD platform has given businesses the opportunity to bring their expertise, networks and resources to bear in achieving goals that can be transformative for societies. We are committed to playing our part in this endeavor and to demonstrating how the private sector can create financially sustainable business models that deliver strong returns and achieve high impact.

Moreover, our corporate social responsibility programs underline our belief in that companies must not only do good by their people, but also for the good of their communities. Which is why we continue to pursue our philosophy of investing in people, community and the environment as a way to achieve long-term sustainable development.

As we continue to grow along with the communities in which the Saratoga Group operates, we are particularly focused on aligning the triple bottom line concept comprising of the three Ps (profit, people and planet). Saratoga is committed to consistently deliver concrete contributions toward sustainable national development by improving the social welfare of local communities.

In 2018, Saratoga spent a lesser amount on all of its CSR activities than that of the previous year, albeit without lessening the benefits that these activities generate. Our CSR programs have generated more impactful results since most of the programs had been implemented for several years with increasingly better experience and expertise. These programs continue to focus on improving social welfare and empowering local communities.

The followings are several highlights of our CSR programs In 2018.



ENVIRONMENT

Saratoga continues to enhance synergies with our investee companies and partners in implementing programs to create or increase awareness for environmental safety and conservation.

On 4 November 2018, Saratoga organized the fourth batch of “To be a New Green Leader”, which is Saratoga’s way of sharing the 10-day training the trainers program in collaboration with the Eco Learning Camp Foundation. Saratoga initiated and developed this program to provide training to improve awareness, knowledge and skills to Indonesian teachers and local leaders who wish to become a green leader and have the ability to train people in their respective living areas.

The Training was held in Eco Camp, an environmental training facility in Bandung, West Java, participated by 46 Indonesian teachers, school leaders and local leaders from Sumatera, Java, Kalimantan, Celebes, West Nusa Tenggara and East Nusa Tenggara.

To date, this program has empowered many local leaders and teachers around Indonesia to achieve great impact in their areas. In Kalimantan, they encouraged people to do Clean Up Tabalong Day and Clean Up Balangan Day, involving the participation of more than 100,000 people.

Alumni of the program also train local residents at home organic farming, and encourage students from elementary to high school to be green leaders. To date, close to 15,000 people have been trained or otherwise participated in the program. By the end of 2018, the program had been applied in 24 other provinces since the program was first introduced in 2015.

SOCIAL & CULTURAL DEVELOPMENT

The third pillar of our CSR program is Social And Cultural Development, in which Saratoga undertakes various programs or activities with local communities to enrich social and cultural awareness and experiences. One such event in 2018 was a Christmas celebration that Saratoga shared with the boys and girls of the Panti Pondok Kasih Agape Orphanage in Cilincing, North Jakarta. For children who no longer have parents, celebrating Christmas with Saratoga and their fellow orphans – however modest – instill the spirit of love and care for one another among these children. A poignant experience to be sure.

In the past, the social and cultural-related activities in our CSR programs have mainly comprised of sponsorships to support special events focus on Jakarta area and communities. However, since 2018 we have refrained from providing one-time sponsorship for isolated events, as we do not see the value of such sponsorship programs to sustainable long-term growth.

We are currently re-evaluating our programs for social and cultural development. We intend to refocus our efforts on programs that will actually lead to sustainable, long-term benefits. This is partly why we only spent IDR473.5 million in all of our CSR activities in 2018.

Obviously, we will resume our social care program, which aims to improve the social conditions and the quality of life for communities in which Saratoga operates.


36

C O R P O R A T E

G O V E R N A N C E

CHAPTER 5 CORPORATE GOVERNANCE


Good corporate governance (GCG) has become an increasingly indispensable tool for companies to navigate safely through the fast changing business environment that companies find themselves in, today. At Saratoga, GCG is implemented to (i) enforce company policies from Management through to all rank-and-file, (ii) govern and control all company activities through a set of formal rules and clear mechanisms, (iii) continuously enhance management accountability to shareholders, (iv) create clear communications between the Company and all stakeholders, and (v) ensure compliance with prevailing laws and regulations, including and primarily pertaining to the rules and guidelines of the Financial Services Authority (OJK) in Indonesia, and the Indonesia Stock Exchange (IDX).

Saratoga strives continuously to improve its GCG policies and practices, and undertook a number of initiatives in 2018 to strengthen governance matters. We completed the Standard Operating Procedures (SOPs) and began to implement them in all Company divisions. We mended the Board of Commissioners Charter and the Audit Committee Charter to align with prevailing laws and regulations. We carried out training programs on GCG for Commissioners, Directors and senior managers of the Company. We strengthened and increased monitoring of GCG policies and practices within the Saratoga group of companies.

Governance Structure and AccountabilityPursuant to prevailing laws and regulations, and in line with

the Company’s Articles of Association, Saratoga’s corporate governance structure is comprised of the General Meeting of Shareholders (GMS), the Board of Commissioners (BOC) and the Board of Directors (BOD).

The GMS is the highest authoritative body of the Company. It facilitates shareholders’ points of view and interests over important decisions, approves the direction that the Company takes in its best interests, while also taking into account the covenants of the Company’s Articles of Association as well as all prevailing laws and regulations.

The BOD is charged with day-to-day management of the Company, supported by an effective management team; while the BOC is responsible for conducting oversight on the performance of the Company and its management. Both the BOC and the BOD are responsible for ensuring long-term sustainability of the Company. Accordingly, the BOD and the BOC, along with all employees shall espouse to the same vision, mission, values, objectives and targets set by the Company.

In discharging their duties and responsibilities, the BOC is assisted by two supervisory committees, namely the Audit Committee and the Nomination and Remuneration Committee.

On the management side, an Investment Committee is relied upon by the BOD to provide professional and independent recommendations, taking GCG principles into full consideration, with respect to any investment and divestment activities undertaken by the Company.

GENERAL MEETING OF SHAREHOLDERS

Board of Commissioners

Internal Audit Unit

Nomination & Remuneration

Committee

Investment Committee Audit

Committee

President Director

BusinessDevelopment

Director

FinanceDirector

PortfolioDirector

CorporateSecretary

Board of Directors

GCG CHART OF THE COMPANY

The Company consistently implements Good Corporate Governance (GCG) principles across all divisions.

Consistency and integrity in GCG leads to sound decision and discipline, enhancing performance and

creating trust between the Company and its stakeholders


GENERAL MEETING OF SHAREHOLDERS (GMS)

The GMS has the authority to amend the Articles of Association of the Company, to appoint and dismiss the Company’s Commissioners and Directors, to approve the course of direction that the Company takes and to issue resolutions, as well as to approve or disapprove important decisions thereof. It also has the authority to declare the Company’s appropriation of earnings and distribution of dividends to shareholders.

In the Company’s Articles of Association, there are two types of GMS namely the Annual GMS and the Extraordinary GMS. A GMS is convened pursuant to Law No. 40 Year 2007 concerning Limited Liability Company i.e. Articles 81, 82 and 83; OJK Regulation No. 32/POJK.04/2014 as lastly amended by OJK Regulation No. 10/POJK.04/2017 regarding Plan and Holding of the General Meeting of Shareholders of the Public Company; and the Company’s Articles of Association.

For the GMS held in 2018, the Company has appointed independent parties, namely Notary Jose Dima, S.H., M.Kn. and PT Datindo Entrycom to tally and/or validate the votes.

INFORMATION ON THE GMS HELD IN 2018In 2018, the Company convened an Annual GMS and Extraordinary GMS on 26 June 2018, upon which all resolutions of each GMS were fully implemented.

TYPE OF GMSAnnual GMS and Extraordinary GMS

GMS ANNOUNCEMENTAnnounced on 18 May 2018 in a national Indonesian newspaper, i.e. Kontan.

GMS INVITATIONAnnounced on 4 June 2018 in a national Indonesian newspaper, i.e. Kontan.

GMSThe Annual GMS was held on 26 June 2018 at 10.26-11.06 WIB, followed by the Extraordinary GMS at 11.09-11.23 WIB, at PT Mitra Pinasthika Mustika Tbk office, Lippo Kuningan 26th Floor, Jl. H.R. Rasuna Said Kav. B-12F, Kuningan, Jakarta 12940, Indonesia.

GMS RESOLUTIONS ANNOUNCEMENTThe resolutions were announced on 27 June 2018 in a national Indonesian newspaper, i.e. Kontan.

Annual GMSThe Annual GMS has been recorded in the Deed of

Minutes of Annual GMS of PT Saratoga Investama Sedaya Tbk. No. 37 dated 26 June 2018 made by Notary Jose Dima Satria, S.H., M.Kn.

The resolutions are as follows:

FIRST AGENDA: APPROVAL ON THE ANNUAL REPORT AND RATIFICATION OF THE FINANCIAL STATEMENTS OF THE COMPANY FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2017

1. To approve and accept the Annual Report of the Company for the year of 2017 and ratify the Consolidated Financial Statements of the Company and Subsidiaries for the Financial Year ended on 31 December 2017, which has been audited by Public Accountant Cahyadi Muliono, S.E., CPA, from Public Accountant Firm Siddharta Widjaja & Rekan (a member of KPMG Global Network) as stipulated in its report No. L.17-6363-18/III.23.002 dated 23 March 2018 with an “Unqualified Opinion”.

2. With the Annual Report of the Company for the year 2017 being approved, and the Consolidated Financial Statements of the Company and Subsidiaries for the financial year ended on 31 December 2017 being ratified, to grant full release and discharge (Acquit et de Charge) to the BOD and the BOC of the Company for their management and supervision during the financial year of 2017, so long such actions are reflected in the Annual Report and the Consolidated Financial Statements of the Company and Subsidiaries for the Financial Year Ended on 31 December 2017 and so long that it is not criminal actions.

SECOND AGENDA: DETERMINATION ON THE USE OF THE COMPANY’S NET PROFIT FOR THE FINANCIAL YEAR OF 2017

1. To approve the use of current year profit attributable to the owners of the Company for the year 2017 is in the amount of IDR3,231,698,000,000 (three trillion two hundred thirty one billion six hundred ninety eight million Rupiah) for the following matters:a. IDR5,000,000,000 (five billion Rupiah) shall be set aside as statutory

reserve of the Company;b. IDR201,000,000,000 (two hundred one billion Rupiah) or IDR74

(seventy four Rupiah) per share, will be distributed as final cash dividend to the shareholders of the Company; and

c. The remaining amount shall be used for Retained Earning to support the development of the business of the Company.

2. To approve the granting of power and authorization to the BOD to manage the procedure of the payment of such final cash dividend, including but not limited to determine the payment schedule, and to conduct any other actions required in relation to the payment of the final cash dividend in accordance with the prevailing laws and regulations.

THIRD AGENDA: APPOINTMENT OF THE PUBLIC ACCOUNTANT TO AUDIT THE FINANCIAL STATEMENTS OF THE COMPANY FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2018

1. To approve the appointment of Public Accountant Cahyadi Muliono, S.E., CPA, from Public Accountant Firm Siddharta Widjaja & Rekan (a member of KPMG Global Network) to audit the consolidated financial statements of the Company for the current financial year and will end on 31 December 2018;

2. To approve the granting of power and authorization to the BOC of the Company to determine the honorarium and other reasonable requirements for such Public Accountant and to appoint a substitute Public Accountant if the appointed Public Accountant is unable to perform its duties.



FOURTH AGENDA: DETERMINATION ON THE SALARY, HONORARIUM AND ALLOWANCES AND OTHER FACILITIES FOR THE MEMBER OF THE BOARD OF DIRECTORS AND THE BOARD OF COMMISSIONERS FOR THE FINANCIAL YEAR OF 2018

1. By taking into account the advice and opinion from the Nomination and Remuneration Committee of the Company, to determine the remuneration amount for all members of the BOC of the Company for the financial year of 2018 in the maximum amount of Rp15,000,000,000 (fifteen billion Rupiah).

2. To approve the granting of authorization to the BOC of the Company to determine the details of the distribution of the remuneration amount to be provided among each member of the BOC by taking into account the advice and opinion from the Nomination and Remuneration Committee of the Company.

3. To approve the granting of authorization to the BOC of the Company to determine the amount of salary, honorarium and allowances and other facilities for the members of the BOD for the financial year of 2018.

FIFTH AGENDA: CHANGE OF THE COMPOSITION OF THE BOARD OF DIRECTOR OF THE COMPANY

1. To accept the resignation of Mr. Ngo, Jerry Go as the Company’s Independent Director as of the closing of this GMS, and accordingly to grant full release and discharge (Acquit et de Charge) to Mr. Ngo, Jerry Go for all his management actions from 1 January 2018 to 26 June 2018.

2. To appoint Ms. Lany D. Wong as the Independent Director of Company for term of office starting from the closing of this GMS until the closing of the third Annual GMS from the year 2018, with due regard to the rights of the GMS to terminate at any time.

Therefore, the composition of the BOD of the Company is as follows:

BOARD OF DIRECTORS:President Director : Michael William P. SoeryadjayaDirector : Andi EsfandiariIndependent Director : Lany D. Wong

3. To approve the granting of power and authorization to the BOD of the Company, with substitution rights, to take all actions relating with the resolutions of this GMS, including but not limited to notifying the re-appointment of the composition of the BOD to the Minister of Law and Human Rights and other competent authorities, to make or sign deeds, letters or other documents that are required or deemed necessary, to appear before the Notary to make and sign the statement of GMS resolutions deed, and to conduct all actions that are required or deemed necessary, and/or required to realize the resolutions of the GMS.

SIXTH AGENDA: REPORT FROM THE BOARD OF DIRECTORS ON THE IMPLEMENTATION RESULT OF LONG TERM INCENTIVE PROGRAM (LTIP)

This agenda is a report from the BOD on the Long Term Incentive Program (LTIP), therefore there was no voting and resolution made in this agenda.

Extraordinary GMSThe Extraordinary GMS has been recorded in the Deed

of Minutes of Extraordinary GMS of PT Saratoga Investama Sedaya Tbk No. 38 dated 26 June 2018 made by Notary Jose Dima Satria, S.H., M.Kn.

The resolutions are as follows:

FIRST AGENDA: APPROVAL ON THE BUYBACK PLAN OF THE COMPANY’S SHARES

1. To approve the buyback of the Company’s shares in the maximum of 0.737% (zero point seven three seven percent) of the issued and paid-up capital of the Company or in the maximum of 20,000,000 (twenty million) shares.

2. To approve the granting of power and authorization to the BOD of the Company, either jointly or individually, to conduct any action necessary to implement the resolutions of this GMS, including to determine the requirements for the buyback of the Company’s shares subject to any prevailing laws and regulations, to appear before an authorized official and/or Notary to make and sign necessary deed(s), to submit information, to make and sign all necessary documents, and to conduct all actions deemed necessary, without exception.

SECOND AGENDA: APPROVAL TO USE THE COMPANY’S TREASURY SHARES FOR LONG TERM INCENTIVE PROGRAM

1. 1To approve the allocation of all of the Company’s treasury shares in the total of 1,355,800 (one million three hundred fifty five thousand eight hundred) shares for the implementation of Long Term Incentive Program (LTIP) to the employees of the Company.

2. To approve the allocation of a maximum of 4,994,200 (four million nine hundred ninety four thousand two hundred) shares from the buyback of shares which will be conducted by the Company for the period of 26 June 2018 until the next Annual General Meeting of Shareholders which will be held at the latest 30 June 2019 for the implementation of the Long Term Incentive Program to the employees of the Company.

3. To approve the granting of power and authorization to the BOD of the Company to act and/or conduct any actions and all arrangements necessary and/or required to implement the Long Term Incentive Program (LTIP), in accordance with the prevailing laws and regulations.

THE BOARD OF COMMISSIONERS

The BOC serves as the governing body responsible for conducting general and/or specific supervisory duties as governed by the BOC Charter and in accordance with the Company’s Articles of Association, the applicable laws and regulations and the principles of GCG.

The BOC supervises the BOD in adopting the management policies of the Company and managing the Company. It also acts in an advisory capacity to the Directors to ensure the Company’s compliance with GCG at all organizational levels and components.

The BOC is a council and each member of the BOC cannot act alone but must be guided by the decision of the BOC. The duties of the President Commissioner, as primus inter pares, is to coordinate the activities of the BOC, to chair the BOC meeting, and to be the spokesperson representing the BOC.

The appointment and election of members of the BOC has complied with applicable laws and regulations.


Disclosure on the remuneration and assessment process of the BOC is presented in the Remuneration Policy and Assessment on Members of the Board of Commissioners and the Board of Directors section in this annual report.

Structure and Composition of the Board of Commissioners

In carrying out its duties, the BOC is responsible to the GMS.

The BOC has met the number and composition as stipulated in the Company’s Articles of Association and the prevailing regulations of the capital market, as well as international best-practice guidelines and recommendations. The BOC of the Company consists of five members, including two Independent Commissioners, which account for 40% of the total members of the BOC.

The Nomination and Remuneration Committee shall recommend the criteria and search for the candidate(s) with appropriate qualifications in accordance to the policies and principles set forth in the BOC Charter. The BOC chooses the candidate(s) that will fit the Company’s needs and propose him/her to the GMS for approval.

The Company’s Independent Commissioners complies with the independency criteria as required by OJK Regulation No. 33/POJK.04/2014 regarding the Board of Directors and the Board of Commissioners of an Issuer or a Public Company.

All members of the BOC have been re-appointed in 2016. As set forth in Deed of Statement of Meeting Resolutions No. 22 dated 18 July 2016, made before Humberg Lie, S.H., S.E., M.Kn., Notary in Jakarta, the composition of the BOC as of 31 December 2018 is as follows:

Name Position Period

Edwin Soeryadjaya President Commissioner 2016-2019

Joyce Soeryadjaya Kerr Commissioner 2016-2019

Indra Cahya Uno Commissioner 2016-2019

Sidharta Utama Independent Commissioner 2016-2019

Anangga W. Roosdiono Independent Commissioner 2016-2019

A brief profile of each member of the BOC is presented in the Corporate Information section of this Annual Report.

Meetings of the Board of CommissionersMeeting of the BOC is held at least 1 (one) time in every

2 (two) months based on the schedule set up at the end of the previous year. The BOC meeting may also be held at any time deemed necessary by one or more member(s) of the BOD, based on a written request by one or more member(s) of the BOC or based on a written request by one or more shareholders jointly representing 1/10 (one tenth) of the total number of shares with valid voting rights. The material for the BOC meeting shall be provided to the meeting participants at the latest 5 (five) days prior to the meeting.

The President Commissioner shall chair the meeting of the BOC. In the absence or inability of the President Commissioner to attend a meeting of the BOC, in the case of which it is unnecessary to give evidence to the third parties, the President Commissioner shall appoint in writing another BOC member to chair the meeting.

A meeting of the BOC shall be legal and entitled to make binding resolutions if more than 2/3 (two-thirds) of the number of members of the BOC are present or represented at the meeting.

In order to maintain the BOC to be up to date on the Company’s development, several BOC meetings are scheduled to be followed with a joint meeting with the BOD. The BOC shall convene a joint meeting with the BOD periodically at least 1 (one) time every 4 (four) months or at any time deemed necessary by the BOC.

Throughout the year 2018, the BOC have convened 6 (six) meetings of the BOC and 5 (five) joint meetings with the BOD.

Meeting of the Board of Commissioners in 2018

INTERNAL MEETING OF THE BOARD OF COMMISIONERS

NAME POSITION TOTAL ATTENDANCE %

Edwin Soeryadjaya President Commissioner 6 6 100

Joyce Soeryadjaya Kerr Commissioner 6 6 100

Indra Cahya Uno Commissioner 6 6 100

Sidharta Utama Independent Commissioner 6 6 100

Anangga W. Roosdiono Independent Commissioner 6 6 100

JOINT MEETING WITH THE BOARD OF DIRECTORS

NAME POSITION TOTAL ATTENDANCE %

Edwin Soeryadjaya President Commissioner 5 5 100

Joyce Soeryadjaya Kerr Commissioner 5 5 100

Indra Cahya Uno Commissioner 5 5 100

Sidharta Utama Independent Commissioner 5 5 100

Anangga W. Roosdiono Independent Commissioner 5 5 100

The Board of Commissioners - implementation of dutiesIn 2018, the BOC carried out the following activities:1. Regularly reviewed and discussed the activities and

recommendations from the Audit Committee and Nomination and Remuneration Committee.

2. Reviewed the Company's business strategy, main action plan, risk policy, budget and annual business plan; set implementation objectives; monitor the implementation and performance of the Company; and oversee investments, acquisitions and divestments that are beyond the agreed limits.

3. Provided reporting on duties and supervision that have been made during the fiscal year of 2017 to the General Meeting of Shareholders.



4. Reviewed the performance of the BOD, BOC, the Audit Committee, and the Nomination and Remuneration Committee for the year 2018.

5. Reviewed and approved the Company’s annual budget for 2018 submitted by the BOD.

6. Periodically reviewed, recommended and provided advice to the BOD regarding the investment activities, financial and operational performance of the Company.

7. Monitored the effectiveness of the Company's good corporate governance practices and make recommendations where appropriate.

8. Approved the appointment of Public Accountant Firm to audit the Consolidated Financial Statements of the Company for the financial year ended on 31 December 2018.

9. Overseen the implementation of corporate strategy.10. Reviewed and revised the Charter of the Board of

Commissioners to be in line with the prevailing regulations.11. Determining the remuneration amount for the BOD

and BOC for the year of 2018, in accordance with the resolutions of the Annual General Meeting of Shareholders on 26 June 2018.

12. Prepared the schedule of the Board of Commissioners meetings for 2019.

Training for the Board of CommissionersIn furtherance to the capabilities of its BOC, the Company

provides general access to training courses and education programs as a matter of continuing professional education. The BOC annually plans, determines and budget relevant trainings and/or professional education programs required for each Commissioner as a professional group and for the individual members based on the Company’s agreed budget for the relevant year.

THE BOARD OF DIRECTORS

The BOD is the Company’s organ that holds full responsibility of corporate management for its interests and to achieve the Company’s purposes and objectives. Collectively, the BOD is responsible for leading and managing the Company, to add value and to ensure the sustainability of the Company. The BOD executes its duties and responsibilities and makes decisions in good faith, care and with full responsibility as governed by the BOD Charter and in accordance with the Articles of Association of the Company, applicable laws and regulations and the principles of GCG.

The appointment and election of the BOD has complied with the applicable laws and regulations.

Disclosure on the remuneration and assessment process of the BOD is presented in the Remuneration Policy and Assessment on Members of the Board of Commissioners and the Board of Directors section of this Annual Report.

Structure and Composition of the Board of DirectorsIn conducting its duties, the BOD is responsible to the GMS. The BOD has met the criteria in respect of the number

of members, composition and independent status pursuant to the Company’s Articles of Association and the prevailing regulations of the capital market, as well as in keeping with international best-practice guidelines and recommendations. Currently, the BOD of the Company consists of three members, including one Independent Director. The composition of the BOD has enabled the BOD to make decision effectively, timely and independently.

With respect to the nomination procedures, nominee(s) of the member of the BOD shall be proposed and recommended to the GMS, which nominee(s) for directorship will be recommended to the BOC by the Nomination and Remuneration Committee in accordance with the policies and principles set forth in the BOD Charter.

Duties and Responsibilities of the Board of DirectorsThe BOD is responsible for taking care of the day-to-day

activities of the Company with the best interests of the Company in accordance with the purposes and objectives of the Company as stipulated in the Company’s Articles of Association. The duties of the BOD cover five main tasks in the areas of management, corporate governance, risk management, internal control and internal audit.

In accordance with the Company’s Articles of Association, the BOD shall be entitled to represent the Company both inside and outside of the court regarding all matters and events, to bind the Company to other party vice versa, to take all actions pertaining to the management and ownership, but with the limitations that for the following actions shall obtain prior approval from the BOC: • To borrow or to grant any loan on behalf of the Company

(excluding withdrawing money of the Company in banks) which amount exceed certain limit as determined by the BOC from time to time;

• To establish a new business or participate in other companies, either within or outside Indonesia in the amount exceeding 10% (ten percent) of the total of the Company’s equity, based on the latest financial statement of the Company, for each project, whereas the equity of the Company consists of shares capital, additional paid-up capital, retained earnings and other comprehensive income;

• To sell or otherwise dispose the participation is the subsidiaries or secure the assets of the Company in the amount exceeding 10% (ten percent) of the total of the Company’s equity, based on the latest financial statement of the Company, for each project, whereas the equity of the Company consists of shares capital, additional paid-up capital, retained earnings and other comprehensive income;

• To bind the Company as a guarantor;• To approve the appointment and or dismissal of the Head

of the Internal Audit unit;• To approve the risk appetite, vision, mission and strategic

plan of the Company.


In order to support effective implementation of its duties, a division of duties has been agreed among the members of the BOD. The assignments are based on the expertise and experience of each member, with the aim of supporting an accurate and quick decision-making process. Each member of the BOD may make decisions according to their field and responsibilities, but the conduct of the BOD’s duties is a shared responsibility.

NAME: MICHAEL WILLIAM P. SOERYADJAYA TITLE: President Director & Business Development Director

» Responsible for coordinating all Company’s operational activities. » Responsible for optimizing returns for the Company on each of its

investments (realized & unrealized) and ensuring the effectiveness of any deal sourcing and portfolio monitoring.

NAME: ANDI ESFANDIARI TITLE: Portfolio Director

» Responsible for supervision of the investee companies of the Company.

NAME: LANY D. WONG TITLE: Independent Director, Finance Director

» Responsible for finance activities of the Company.

Mr. Michael William P. Soeryadjaya and Mr. Andi Esfandiari have been re-appointed as the member of the Company’s BOD in 2016 as resolved in the Extraordinary GMS held on 15 June 2016, and Ms. Lany D. Wong has been appointed as the member of the Company’s BOD as resolved in the Annual GMS held on 26 June 2018. As set forth in Deed of Statement of Meeting Resolutions No. 22 dated 18 July 2016, made before Humberg Lie, S.H., S.E., M.Kn., Notary in Jakarta and Deed of Minutes of Annual GMS of PT Saratoga Investama Sedaya Tbk. No. 37 dated 26 June 2018 made by Notary Jose Dima Satria, S.H., M.Kn, the composition of the BOD as of 31 December 2018 is as follows:

NAME POSITION PERIOD

Michael William P. Soeryadjaya President Director 2016-2019

Andi Esfandiari Director 2016-2019

Lany D. Wong Independent Director 2018-2021

A brief profile of each member of the BOD is presented on the Corporate Data section of this Annual Report.

In order to perform such duties and responsibilities, the BOD may also establish a committee to assist the BOD in conducting the analysis and work of the BOD, from time to time, as necessary or appropriate.

Meetings of the Board of DirectorsThe BOD meetings are held regularly on a monthly basis

or more frequently if considered necessary by the BOD. A quorum is achieved when more than 50% of members are present at the meeting.

To keep the BOC up to date with the operational and investment activities of the Company, members of the BOC are invited for joint meeting with the BOD.

Throughout the year 2018, the BOD have convened 12 (twelve) meetings and 5 (five) joint meetings with the BOC as follows:

INTERNAL MEETING OF THE BOARD OF DIRECTORS

Name Position Total Attendance %

Michael William P. Soeryadjaya President Director 12 12 100

Andi Esfandiari Director 12 12 100

Ngo, Jerry Go Independent Director 6 6 100

(until 26 June 2018)

Lany D. Wong Independent Director 6 6 100

(from 26 June 2018)

JOINT MEETING WITH THE BOARD OF COMMISSIONERS

Name Position Total Attendance %

Michael William P. Soeryadjaya President Director 5 4 80

Andi Esfandiari Director 5 5 100

Ngo, Jerry Go Independent Director 2 1 50


Lany D. Wong Independent Director 3 3 100

(from 26 June 2018)

The Board of Directors Duty ImplementationIn 2018, the BOD carried out the following major activities:1. Carried out detailed and routine evaluation of the

performance of each business unit of the Company.2. Carried out routine reviews of the Company’s monthly

financial performance.3. Discussed the Consolidated Company’s financial statements,

limited reviewed by independent auditor for the period ended on 30 June 2018 and audited by independent auditor for the financial year of 2018.

4. Discussed the preparation of the Annual GMS 2018 and the agenda to be discussed.

5. Discussed the comprehensive work plan and budget for 2019.

6. Discussed the medium-term and long-term development plan of the Company’s business portfolio organically and inorganically, as well as capital expenditure requirements.



Training Programs for the Board of DirectorsIn 2018, the BOD actively attended conferences held by

financial institutions in Indonesia and overseas.

SELF-ASSESSMENT POLICY OF THE BOARD OF DIRECTORS

The BOD shall establish its Key Performance Indicator and propose to the BOC in the beginning of each year for assessment by the BOC at the year-end. Evaluation on the BOD performance, individually or collectively, is performed on an annual basis. The BOD will also conduct an annual self-evaluation to determine whether it and its committees are functioning effectively.

The President Director will review on a periodic basis the performance of each Director’s duties as well as the role and responsibilities of each Director. The assessment will focus on the Director’s contribution to the Company and specifically focus on areas in which the management believes that the Director could improve.

The President Director will be reviewed and assessed by the President Commissioner. The same assessment criteria as described above shall be applied.

The Nomination and Remuneration Committee will receive comments from the President Director and President Commissioner and report annually to the BOC with an assessment of the BOD’s performance. The assessment will be discussed with the full BOC each year. Each standing committee established by the BOD shall review and reassess the adequacy of its charter annually and recommend any proposed changes to the BOD for approval.

SUCCESSION PLANNINGThe BOC, based on recommendation from the Nomination

and Remuneration Committee, adopts a succession plan that outlines how the Company will prepare the next generation of its directors. The succession planning includes the roles of the President Director, Directors and other key executive positions deemed necessary by the BOC, BOD or the Nomination and Remuneration Committee.

To assist in this process, the President Director shall work with the BOC or the BOD or the Nomination and Remuneration Committee to identify a list of individuals’ best suited to replace the Company’s key executives. The succession plan goes beyond simply naming potential leaders, but also identifying plans to professionally develop the Company’s leadership pipeline. The BOD, BOC or the Nomination and Remuneration Committee should update its succession planning on a regular basis.

DISCLOSURE OF AFFILIATION

TABLE OF FAMILY AND FINANCIAL RELATIONS OF THE

BOARD OF COMMISSIONERS

Name Family & Financial Relationship with Remarks

BOD BOC Controlling

Shareholders

Edwin Soeryadjaya Yes Yes Yes -

Joyce S. Kerr Yes Yes Yes -

Indra Cahya Uno No No Yes -

Sidharta Utama No No No Independent

Anangga W. Roosdiono No No No Independent

TABLE OF FAMILY AND FINANCIAL RELATIONS OF THE

BOARD OF DIRECTORS

Name Family & Financial Relationship with Remarks

BOD BOC Controlling

Shareholders

Michael William P. Soeryadjaya No Yes Yes

Andi Esfandiari No No No Independent

Ngo, Jerry Go No No No Independent

RELATED PARTY TRANSACTIONThe Company shall follow all relevant regulations, particularly Bapepam Regulations No. IX.E.1, which contains definition and detailed procedure to ensure fairness when related party transactions and conflict of interest on certain transaction takes place. Any potential conflict of interest and related party transactions shall be brought up to the Audit Committee.

REMUNERATION POLICY AND ASSESSMENT ON MEMBERS OF THE BOARD OF COMMISSIONERS AND THE BOARD OF DIRECTORS

The BOC and the BOD members are entitled to remuneration that comprise of salaries for the Directors, honoraria for the Commissioners, and other benefits and allowances for both of the Directors and Commissioners. Pursuant to the Extraordinary GMS held on 26 June 2018, the GMS has approved that the remuneration for all members of the BOC of the Company for the financial year of 2018 is in the maximum of Rp15,000,000,000 (fifteen billion Rupiah). The BOC will then determine the details of the distribution of the remuneration amount to be provided among each member of the BOC, by taking into account the advice and opinion from the Nomination and Remuneration Committee. The GMS has also grant authorization to the BOC to determine the amount of salary, honorarium and allowances and other facilities for the member of the BOD for the financial year of 2018.


• External relevant regulations (company law, capital market law, Financial Services Authority regulations, and other relevant regulations);

• Internal regulations (Articles of Association, Corporate Governance Code, Code of Conduct, BOC Charter, BOD Charter and other policies of the Company);

• The Company’s business model;• The Company’s operational system and internal control.

COMMITTEES OF THE COMPANY

NOMINATION AND REMUNERATION COMMITTEEThe Nomination and Remuneration Committee is tasked

to provide recommendations to the BOC regarding the nomination and remuneration for members of the BOC and the BOD. The Nomination and Remuneration Committee Charter has been amended to comply with the OJK Regulation No. 34/POJK.04/2014 regarding Nomination and Remuneration Committee of an Issuer or Public Company, approved by the BOC and published on the website of the Company. Such charter includes the structure, membership as well as duty and responsibility of the Nomination and Remuneration Committee.

Duties and Responsibilities of the Nomination and Remuneration Committee

The duties and responsibilities of the Nomination and Remuneration Committee are to assist the BOC professionally and independently as well as by considering the GCG principles in giving the recommendation related with systems and procedures related to:• The succession program of the member of the BOC and

the BOD and strategic position in the management of the Company.

• The identification and proposal of candidates for members of the BOC, the BOD and strategic positions in the management of the Company.

• The determination of the remuneration for members of the BOC, the BOD and strategic positions in the management of the Company.

Remuneration for the BOC members is based on the performance of the BOC, as assessed by the Nomination and Remuneration Committee. As for the BOD members, their remuneration is based on the Company’s achievement against budget and business targets. The remuneration is also benchmarked against those of industry peers. The remuneration for the Independent Commissioners does not include a bonus component to preserve their independent status.

For the year ended on 31 December 2018, the remuneration granted to members of the BOC and the BOD is as follows:

Type of Remuneration Total Amount Received by the Board of and Other Facilities Commissioners and the Board of Directors in year 2018

Salary IDR 17,730,861,000

Bonus IDR 0

Benefit and Allowance IDR 2,330,308,628

Long Term Incentive Program (Shares) 1,557,000 shares

Other than those that have been stipulated above, no personal loans are to be extended to the members of the BOC, BOD and other executives in Director level of the Company.

DIVERSITY OF THE COMPOSITION OF THE BOARD OF COMMISSIONERS AND THE BOARD OF DIRECTORS

The diversity of the composition of the BOC and the BOD will encourage more objective and comprehensive decision. The composition of the BOC and the BOD in terms of academic qualifications, expertise, age and gender is presented in detail on the Corporate Data section of this Annual Report.

ORIENTATION PROGRAM FOR NEW DIRECTOR AND COMMISSIONER

The Company offers an orientation program for new director and commissioner to ensure that the new director and commissioner conduct their duties prudently. The orientation program shall contain the following items:



Terms of Office of the Nomination and Remuneration Committee

The appointment of members of the Nomination and Remuneration Committee by the BOC is based on the BOC decision. For the Independent Commissioner who is also a member of the Nomination and Remuneration Committee, his/her term of office shall be equal to his/her term of office as Independent Commissioner as stipulated by the GMS. For other members who are not Independent Commissioners, their term of office may not exceed the term of office of the BOC and can be reappointed for the next period.

Composition and Structure of the Nomination and Remuneration Committee

The composition of the Nomination and Remuneration Committee as of 31 December 2018 is as follows:


Anangga W. Roosdiono Chair 2016-2019

Edwin Soeryadjaya Member 2016-2019

Handianto Ganis Member 2016-2019

A brief profile of each member of the Nomination and Remuneration Committee is presented on the Corporate Data section of this Annual Report.

Independency of the Nomination and Remuneration Committee

The Nomination and Remuneration Committee carries out its tasks and responsibilities professionally and independently, without intervention from any party that is not in accordance with the rules and regulations.

Nomination and Remuneration Committee MeetingIn 2018, the Nomination and Remuneration Committee

has met 4 (four) times, with the attendance of the members as follows:

Name Number of Meetings Present Absent %

Anangga W. Roosdiono 4 4 - 100

Edwin Soeryadjaya 4 4 - 100

Handianto Ganis 4 4 - 100

Nomination and Remuneration Committee Activities in 2018

During the meetings held in 2018, the Nomination and Remuneration Committee actively provided feedback, evaluation and discussed, through among others, the following activities:• Reviewed the profiles and salary of the employees of the

Company.• Formulated and monitored the Key Performance Indicator

of the Company, the BOC, the BOD and the employees of the Company.

• Monitored human resources activities in the Company i.e. on the recruitment process for managerial level and above.

• Carried out assessment processes for the employees of the Company.

• Approved the implementation of the Long Term Incentive Program.

• Proposed the 2018 remuneration and annual bonus for the Commissioners and Directors of the Company.

The Chair of the Nomination and Remuneration Committee regularly reports the activities of the Committee to the BOC in the meeting of the BOC.

AUDIT COMMITTEEThe Audit Committee is responsible to oversee and

advise the BOC on the effectiveness of internal control and risk management mechanisms as well as compliance with applicable internal and external regulations.

The BOC has established the Audit Committee in accordance with prevailing laws and regulations with the intention of performing efficiently and effectively. The Audit Committee is governed through the Audit Committee Charter which has been approved by the BOC and published on the website of the Company. Such charter includes the structure, membership as well as duties and responsibilities of the Audit Committee.

Duties and ResponsibilitiesThe Audit Committee provides professional and

independent opinion to the BOC regarding their responsibility to oversee and to advice the BOD in managing the Company.

The Audit Committee has duties and responsibilities pursuant to OJK Regulation No. 55/POJK.04/2015 regarding Establishment and Working Implementation Guidelines of the Audit Committee (OJK Regulation No. 55).


Audit Committee ActivitiesIn 2018, the Audit Committee carried out the following activities:• Reviewed quarterly and annual financial statements

regularly, prior to submission to OJK and IDX. Particular attention is paid to the accounting policy (recognition, presentation, and measurement) and the disclosure in the notes to financial statements.

• Reviewed, selected and recommended the appointment of the Public Accountant Firm to audit the Consolidated Financial Statements of the Company for the financial year ended on 31 December 2018.

• Reviewed internal audit plan, findings and follow-up on findings, suggesting internal control improvement and monitoring the management’s follow-up on the findings. The Audit Committee also reviewed and provided suggestion on the 2019 internal audit plan with respect to its adequacy from the perspective of risk-based audit.

• Evaluated the external auditor’s work on the audit for the 2017 financial statements which was completed in mid-March 2018. The Audit Committee also reviewed the overall audit plan and approach as well as independency of the auditors for the audit of the 2017 financial statements.

• Reviewed the risk management strategy and oversaw the implementation plans that are tailored to the business model of the Company i.e. a holding investment company. The risk management policy and procedure (including risk assessment) were established and they have been implemented since the second quarter of year 2015. The Audit Committee oversaw the implementation process, making sure that the risk management policy is embedded within the Company’s operation and comply with the Company’s management control process and governance.

• Reviewed the legal and compliance function conducted by Legal and Corporate Secretarial Division. The Legal and Corporate Secretarial Division ensures that all relevant and applicable regulations are acknowledged, implemented and socialized within the Company as well as ensuring that relevant capital market rules are embedded in the internal rules and practices within the Company. The Audit Committee emphasizes the importance of the company to fully comply with the applicable rules and regulations.

• Reviewed, revised and agreed on the amendments to the Audit Committee Charter to be in line with the prevailing laws and regulations. The amendment to the Audit Committee Charter came into effect on 1 January 2018.

Term of Office of the Audit CommitteeThe appointment of members of the Audit Committee by

the BOC is based on the BOC decision. For the Independent Commissioner who is also a member of the Audit Committee, his/her term of office shall be equal to his/her term of office as Independent Commissioners as stipulated by the GMS. For other members who are not an Independent Commissioner, their term of office may not exceed the term of office of the BOC and can only be reappointed for another single period.

Composition and Structure of the Audit CommitteeThe composition of the Audit Committee as of 31

December 2018 is as follows:


Sidharta Utama Chair 2016-2019

Ludovicus Sensi Wondabio Member 2016-2019

Alida Basir Astarsis Member 2016-2019

A brief profile of each member of the Audit Committee is presented on the Corporate Data section of this Annual Report.

Independency of the Audit CommitteeAll members of the Audit Committee are professionals in their

field and selected based among others, on integrity, competence, experience and knowledge in financial matters. The Audit Committee members are also required to meet the independency requirements as stipulated in OJK Regulation No. 55.

Audit Committee MeetingMeetings of the Audit Committee are scheduled at the

beginning of the year and at any time as deemed necessary. In 2018, the Audit Committee has met 8 (eight) times, with the attendance of the members as follows:


Sidharta Utama 8 8 - 100

Ludovicus Sensi Wondabio 8 8 - 100

Alida Basir Astarsis 8 8 - 100

Each meeting was attended by at least two members of the Committee. For those unable to attend the meetings, the full minutes of meetings were provided to the members.



• Agreed on the Audit Committee’s meeting schedule and agenda for the year 2019.

Overall, the Audit Committee has performed certain actions and measures with regards to their major responsibili-ties, among others:• ensuring the integrity of the Company’s financial reporting

and internal control systems, and the effectiveness and quality of the audit process performed by the external and internal auditor;

• ensuring that the Company’s internal control are designed and implemented efficiently and effectively;

• ensuring that the risk management process are in place and effectively implemented; and

• ensuring the Company’s compliance to the applicable rules and regulations, including regulations from the authorities.

The Chair of the Audit Committee regularly reports the activities of the Audit Committee to the BOC in the meeting of the BOC.

INVESTMENT COMMITTEEThe Investment Committee is responsible to ensure that

every investment and divestment activities and decisions made by the Company complies with the GCG values.

Duties and ResponsibilitiesIn order to ensure further governance of its investment and divestment activities, an Investment Committee has been established to make such investment and divestment decisions. The Investment Committee is composed of the BOD sitting en banc and supervised by the President Commissioner of the Company. All decisions of the Investment Committee need unanimous agreement of all its members and a sign-off from the President Commissioner. The Investment Committee's activities are governed by the Investment Committee Charter, which amendment has been made last year and published on the Company’s website.

Term of Office of the Investment CommitteeThe term of office for Commissioner who is acting as the

Investment Committee Supervisor shall not be longer than his/her term of office as the member of the BOC and can be re-appointed for the next period. For Investment Committee members who is also a member of the BOD, his/her term of office shall not be longer than his/her term of office as the member of the BOD and can be re-appointed for the next period.

For other members of the Investment Committee who are not a Commissioner or Director of the Company, his/her term of office follows the process of a relevant investment or divestment and shall end upon signing the resolution pursuant to such investment or divestment.

Composition and Structure of the Investment Committee

The composition of the Investment Committee as of 31 December 2018 is as follows:


Edwin Soeryadjaya Supervisor 2016-2019

Michael William P. Soeryadjaya Chair 2016-2019

Andi Esfandiari Member 2016-2019

Lany D. Wong Member 2018-2019

A brief profile of each member of the Investment Committee is presented in the Corporate Data section of this Annual Report. Investment Committee Meeting

In 2018, the Investment Committee has met 20 (twenty) times, with the attendance of the members as follows:


Edwin Soeryadjaya 20 20 - 100

Michael William P. Soeryadjaya 20 20 - 100

Andi Esfandiari 20 20 - 100

Ngo, Jerry Go 8 8 - 100


Lany D. Wong 12 12 - 100

(from 26 June 2018)


Internal Audit Unit Structure Based on the BOC Circular Resolution dated 9 February

2016, Lily Herawati serves as the Head of the Internal Audit of the Company and reports directly to the President Director of the Company.

The Internal Audit Function consists of internal auditors with complementary range of educational backgrounds, skills and work experiences. By the end of 2018, the Internal Audit Unit consisted of two auditors including the Head of Internal Audit and a Senior Officer of Internal Audit.

A brief profile of the Head of the Internal Audit Unit is presented in the Corporate Information section of this annual report.

Execution of Internal Audit WorksIn 2018, Internal Audit carried out four general audits on

several business processes and followed up on all of the audit findings.

CORPORATE SECRETARYThe Company has a Corporate Secretary function

under the Legal and Corporate Secretarial Division that assists the Company in its communications with the capital market authority, the stock exchange and the public at large. The Corporate Secretary also provides recommendations concerning the implementation of GCG principles. Aside from administering reports to the capital market authority, the Corporate Secretary coordinates with other divisions in the Company in order to provide the management with information on the latest changes and developments in capital market regulations. The Corporate Secretary also oversees the regular and proper implementation of GMS, the BOD, and the BOC meetings, as well as providing timely information to shareholders regarding the Company’s performance.

Corporate Secretary Structure The Corporate Secretary reports directly to the President

Director. Pursuant to BOD Circular Resolution dated 12 October 2018, the Corporate Secretary functions and respon-sibilities are performed by the Legal and Corporate Secretarial Division of the Company, with Sandi Rahaju and Juan Akbar Indraseno as the person-in-charge. The Company does not determine the term of office of the Corporate Secretary.

A brief profile of the Head of the Legal and Corporate Secretarial Division is presented in the Corporate Data section of this Annual Report.

Investment Committee ActivitiesIn 2018, the Investment Committee deliberated on a total

of 9 new proposals. Of these proposals, a single investment was approved and 25 follow-on investments were undertaken in 2018. The Committee also approved a single divestment during the year.

The Investment Committee regularly reports the activities of the Investment Committee to the BOC in the joint meeting between the BOD and the BOC.

OTHER CORPORATE GOVERNANCE BODIES

INTERNAL AUDIT UNITThe Internal Audit Unit of the Company was established

on the basis of the Internal Audit Charter. The role of the Internal Audit Unit is to provide reasonable assurance to the BOD in governance, risk management and control, as well as advice for continuous improvements in existing business processes. Internal Audit Unit provides professional and independent opinions about whether the Company’s activities are in accordance with the Company’s rules and regulations. To carry out its mission, the Internal Audit Unit has developed an organizational structure, work standards and practices, communication programs and quality assurance programs.

Duties of the Internal Audit UnitThe Internal Audit Unit’s duties and responsibilities include

the following:• Prepare and formulate the Annual Audit Plan.• Undertake the audit works in line with the audit plan

and assess the efficiency and effectiveness of business development, portfolio monitoring, finance, accounting, human capital, and legal.

• Test and evaluate the implementation of internal control and risk management systems in line with the Company’s policies.

• Provide advice on improvements and objective information on the activities being audited at every level of management.

• Prepare the audit findings report and present the report to the President Director and the Audit Committees.

• Monitor, analyze and report the follow up actions as recommended.

• Evaluate the quality of the internal audit works periodically in carrying out the audit program.

• Undertake special audits when required.



Corporate Secretary’s activities in 2018Throughout 2018, the Corporate Secretary carried out several activities, including: • Carried out correspondences and meetings with OJK and

IDX as the capital market regulators.• Attended conferences and workshops held by OJK, IDX,

Asosiasi Emiten Indonesia and Indonesia Corporate Secretary Association.

• Jointly with the Investor Relations and the Corporate Communication, provided update of the Company’s development to the public through press releases, the Company’s website, and fulfillment of the Company data requests.

• Submitted four periodic financial reports and one annual report to OJK and IDX, as well as published these reports on the Company’s website and announcements of full year financial statements and half year financial statements in national newspapers.

• Submitted any incidental reports to OJK and IDX as required under OJK and

• Conducted one Annual GMS and one Extraordinary GMS. • Organized press conferences, meetings and media coverage

activities with the Corporate Communication.• Submitted regular and incidental reports to OJK and IDX

as required by the prevailing capital market regulations.

Training for the Corporate SecretaryTo support the execution of its tasks, the Corporate Secretary attended a series of competence development programs and seminars in 2018 held by OJK and IDX.

CORPORATE COMMUNICATIONCorporate Communication takes active roles in managing

various public and media relations efforts to public. Public and media relations activities aim to build a positive reputation of the Company, through activities and communication with media, as well as corporate social activities.

Corporate Communication takes active roles in managing various publication materials to public, among others:

• Setting implementation strategy of the Company’s non-media publication for non-financial public, investor and financial community in order to maintain the Company’s goods reputation.

• Setting implementation strategy of the Company’s mass media advertisement related to financial and non- financial aspect in order to maintain the Company’s goods reputations.

• Ensuring the Company’s publication and website are easily accessible to the public and its content is presented in a format that is simple and clear for ease of readability.

Throughout 2018, the Corporate Communication carried out various activities, including: • Organized the Annual GMS and Public Expose 2018• Provided update of the Company’s development to public

through press releases and corporate website• Initiated and managed three Corporate Social

Responsiblities programs.

INVESTOR RELATIONSIn order to achieve its main goal to provide clear

communication to the shareholders and investors to maintain the Company’s goods reputations, Investor Relations completed various activities throughout 2018.

In 2018, Investor Relations provided investors and capital market participants the access to the Company’s information and direct meetings with Directors of the Company by way of one-on-one and group meetings, as well as delivery of public expose. The Directors of the Company actively participated in many of these occasions.

Investor Relations disseminates information directly to investors and capital market participants through the Company’s website to ensure that the shareholders and other capital market participants are able to make a fair decision in investing in the Company.

Investor Relations of the Company reports directly to the Finance Director and works alongside with the Corporate Secretary and the Corporate Communication in building a positive public perception of the Company and assisting in ensuring transparency of the Company to the public.

OTHER CORPORATE GOVERNANCE INFORMATION

ACCESS TO INFORMATION AND COMPANY DATAThe Company believes that information dissemination to all

stakeholders is an important component to increase internal and external information transparency, aimed at assisting, maintaining and enhancing stakeholders’ knowledge, understanding and positive perception on its policies and activities. To provide up-to-date information to all stakeholders, the Company presents its information portal (www.saratoga-investama.com) in Indonesian and English.


To comply with information disclosure principles, the Company always submits reports regarding material information and facts through both letters and electronic reporting to OJK and IDX. The Company’s information disclosure is presented through electronic reporting available on the IDX website (www.idx.co.id).

.Information Disclosure in 2018

In accordance to the principles of transparency and in compliance with the stock exchange and capital market information disclosure’s rules and regulations, the Company provides up-to-date information regarding any and all developments of the Company to the shareholders and capital market authorities through various channels to ensure effective, equal and timely communication. In addition to direct reporting to the capital market and stock exchange authorities, information is disseminated to the shareholders through IDX announcements and the mass media, as well as on the Company’s website.

EXTERNAL REPORTS IN 2018 FREQUENCY

Reports to OJK 56

Reports to IDX 49

Annual Report 1

Press Release 1

PRESS RELEASE IN 2018

Date Title

18 October 2018 Ora et Labora Vocational School Produces Skilled Generation

Specializing in Electric Power Engineering.

ADMINISTRATIVE SANCTIONIn 2018, there were no administrative sanctions enforced

on the Company by either IDX or OJK.

LITIGATION For the year 2018, there were no civil or criminal legal

proceedings involving the Company, the BOC and/or the BOD as an indicted party.

ETHICS AND SOCIALIZATION OF THE COMPANY’S ETHICS

The Company’s Code of Conduct serves as a guideline for directors, commissioners and all employees of the Company in conducting interaction and relationships with the stakeholders.

The purpose of the Code of Conduct is to guide the implementation of the Company’s commitment to maintain highest standards of ethical behavior, to encourage proper

ethical conduct and sanction misconduct within the Company; and to develop an ethical culture based on such standards and conduct, led by the Company’s shareholders, commissioners and management, and followed by all employees.

Internalization and socialization process of the Code of Conduct and corporate values for all organizational levels, including the Commissioners, the Directors and the employees is carried out through formal and informal communication media, such as: discussion and briefing of the management, e-mail blast and others, conducted by Human Resources Division.

The detailed contents of the Code of Conduct are available on the Company’s website.

BUYBACK OF SHARES OF THE COMPANYIn accordance with the Deed of Minutes of Extraordinary

GMS of the Company No. 112 dated 26 April 2017, made before Jose Dima Satria, S.H., M.Kn., Notary in Jakarta, the main reason of the Company in conducting the buyback of shares is with regards to the implementation of the Company’s Long Term Incentive Program. In addition, the Company considers that the Company's current share price does not reflect the actual value/performance of the Company, although the Company has performed well.

For that reason, the Company seeks a flexibility that allows the Company to have a mechanism to maintain the stability of the Company’s shares price so it could more reflect the Company’s value/performance, the Company’s shareholders approved to implement the buyback of shares of the company for period of 2017-2018 by allocating a maximum of 20,000,000 (twenty million) of the Company’s shares for the above purposes.

In 2017, 1,795,100 (one million seven hundred ninety five thousand one hundred) shares and in 2018, 1,355,800 (one million three hundred fifty five thousand eight hundred) shares have been distributed to the employees, with regards to the Company’s Long Term Incentive Program.

WHISTLEBLOWING SYSTEMThe Company has its official mechanism for a whistleblower

to report misconduct, as defined in the CGC and the Code of Conduct of the Company.

Employees can report any cases of fraud or violation of GCG, Code of Conduct, Company’s bylaws, Articles of Association, prevailing laws and regulations, confidential information and other misdeeds to the Internal Audit Unit.

A report of a violation or suspected violation will be kept confidential to the extent possible, consistent with the need to



conduct an adequate investigation of the matter in question and the identity of the person will not be revealed. All reports will be promptly investigated and appropriate action will be taken.

Internal Audit Unit will endeavor to ensure that the investigations are conducted as speedily and sensitively as possible without affecting the quality and depth of these investigations. The person who submits the report will be informed of the progress and outcome of the investigation in writing.

The Company values the help of the employees who identify potential problems that the Company needs to address. Any employees who have raised a concern honestly or participated in an investigation, could not be the basis for any adverse employment action, including termination, demotion, suspension, loss of benefits, threats, harassment, or discrimination. In 2018, the Internal Audit Unit have received no report of fraud or violation.

INTERNAL CONTROL SYSTEMSThe Internal Control System comprises of:• An internal control environment disciplined and structured

within the Company.• Assessment and management of business risks.• Control activities.• Information System and Communication.• Monitoring.

RESPONSIBILITIESEveryone in the Company has responsibility for internal control, including the BOD, Internal Auditor Unit, senior or middle managers and other personnel (all employees of the Company).

Internal Control ObjectiveInternal control provides 3 (three) categories of objectives, which allow company to focus on differing aspects of internal control:• Operation Objectives – These pertain to effectiveness

and efficiency of the company operations, including operational and financial performance goals, and safeguarding assets against loss.

• Reporting Objectives – These pertain to reliability of financial reporting, timeliness, transparency, or other terms as set forth by regulators, recognized setters, or policies of the Company.

• Compliance Objectives – These pertain to adherence to prevailing laws and regulations to which the company is subject.

Effectiveness and Efficiency of the Company’s Operations

Internal Audit has the primary responsibility for ensuring the various assurance functions are coordinated to provide reasonable assurance that controls are operating effectively.

The Company’s management holds the meeting of the BOD, the BOC and management meeting regularly to review and ensure timely updates on the business operations, the financial performances as well as any potential opportunities of the Company and its investee companies. This enables the Company’s management to deal with rapidly changing economic and competitive environments, priorities, and preparation for future growth.

The Company has also established an Internal Audit with its main task to provide reasonable assurance to the BOD in corporate governance and risk management and control, as well as to provide advice for continuous improvements in existing business processes.

Internal Audit provides professional and independent opinions about whether the Company’s activities are in accordance with the Company’s rules and regulations.

To ensure BOC’s views and recommendations are followed and applied, the Internal Audit Unit attends all Audit Committee meetings and provides further inputs to senior management person as relevant.

INSIDER TRADINGAny directors, commissioners or employees of the Company, including their affiliates, who have access to confidential information are not permitted to use or share that information for securities trading purposes or for any other purposes other than to conduct the Company’s activities. All non-public information about the Company shall be considered as confidential information. All directors, commissioners and employees of the Company shall report their shares ownership upon the Company’s shares or security in the beginning of the year. In 2018, no insider trading was carried out by the directors, commissioners or the employees of the Company.

Reliability of Financial ReportingThis relates to the preparation of reliable published

financial statements, including interim and condensed financial statements and selected financial data derived from such statements, such as earnings releases, reported publicly.

The Company’s financial statement applies the Indonesia Financial Accounting Standard. The Company engages one of the big four Public Accounting Firm to audit the consolidated financial statements.


Adherence to Laws and RegulationsThe Company always refers to the updated applicable laws

and regulations issued by the regulators.

List of regulation which may have a significant effect to the Company

No. Regulation

1 Government Regulation No. 24 of 2018 on Electronic Integrated Business

Licensing Services

2 Collective Announcement of the Ministry of Law and Human Rights and the

Ministry of the Economic Coordinator, dated 11 October 2018

3 Government Regulation No. 43 of 2018 on Public Participation in the Prevention

and Suppression of Corruption

4 Regulation of the Financial Services Authority No. 9/POJK.04/2018 on the

Acquisition of Publicly Traded Companies

5 Regulation of the Financial Services Authority No. 7/POJK.04/2018 on the

Submission of Reports through Issuers or the Electronic Reporting Systems of

Public Companies

6 Regulation of the Financial Services Authority No. 21/POJK.04/2018 on Settlement

Period of Stock Exchange Transaction

7 Decision of the Board of Directors of the Indonesia Stock Exchange concerning

Amendment to Regulation Number I-A concerning Listing of Shares and

Equity-Based Securities other than Shares Published by Listed Company dated 26

December 2018

RISK MANAGEMENTThe Company understands that its active investment

strategy exposes the Company to risks that may slow down the business growth or even threaten the Company’s existence. We put all efforts to identify and manage risks as they arise and at the same time focus on managing key risks continuously.

Risk Management is an integral part of the GCG assurance, working alongside with internal audit and compliance unit. The objectives of Risk Management Unit (RMU) include: • Identifying, assessing, managing, and monitoring key risks

together with the BOD and business unit heads to achieve sustainable growth and protect the interest of shareholders and stakeholders.

• Instilling risk awareness culture in the Company.• Implementing risk management according to good practice

The BOD plays an active role in ensuring the implementation of Company’s risk management while the Audit Committee oversees the BOD in conducting the establishment of RMU and progress on implementation of risk management plan. The Audit Committee escalates major issues to the BOC who oversees the Company’s balance in creating value and managing risks and provides advice to the BOD for further actions.

RISK MANAGEMENT ACTIVITIES IN 2018

Risk Issues EscalationOn a weekly basis, risk issues were discussed within internal

meetings at the board and management level. RMU attended these meetings, noted, and raised issues that are required to be escalated.

In addition, RMU conducted the following meetings in 2018 to formally escalate issues within the Company:

Date Presented to Agenda

24 April 2018 Audit Committee Review of Financial Risks: FX, Interest

Rate, Equity, and Liquidity Risks

14 December 2018 Audit Committee Review of Financial Risks: FX, Interest

Rate, Equity, and Liquidity Risks



RISK PROFILE

Risks Mitigations

Social-Political, Market, and Economic Risks

Adverse social-political, market and economic conditions can affect our business including reduction in the value of our investments and limiting the investment opportunities, which may affect our financial conditions.

Risk of Expansion to New Business and Market

As an active investment company, we always strive to look at opportunities that can provide the most value to our portfolio. We are open to enter into new lines of business, new investment strategies, and new geographic markets, which may result in additional risks and uncertainties in our business.

Exposure to Industry Risks in which Our Investee Companies Operate

Our investee companies are involved in a number of varying industries, across the Natural Resources, Infrastructure, and Consumer sectors. Industries in each of these three sectors are subject to specific inherent risks.

Funding and Cash Flow Risk

The nature of the business focus is on early stage and long-term horizon investment which requires significant long-term funding; depending on credit market conditions we may not be able to renew “such” facilities. Lack of funding may result in foregoing investment opportunities.

Market Risks

Adverse movements in equity prices, interest rates, and foreign currency exchange rates may affect the Company’s financial performance.

Risk of Dependency on Founders and Key Executives

The loss of services from our founders and executives may have material adverse impact on our business.

Risk of Employee Negligence and Misconduct

Employee misconduct could harm the Company by impairing our ability to attract investment and subjecting us to significant financial loss, legal liability and reputational harm

Risk Due to Regulatory and Legal Complexities

The Company’s investments may involve substantial business, regulatory or legal complexities that may entail higher level of regulatory scrutiny or greater risk of contingent liabilities.

Movement of macroeconomic indicators both in Indonesia and globally are closely monitored through various engagements, including the weekly management meetings. Aligned with our investment focus, we believe that the future growth prospects of Indonesia outweigh the social-political, market, and economic risks faced by Indonesia today and the foreseeable future.As evidenced by previous experience, unfavorable market conditions may actually offer new investment opportunities. Saratoga was formed in 1998 at the time of the great Asian financial crisis.

In capturing opportunities, we follow strict investment process and conduct rigorous analysis and due diligence. We stand-by our rigorous and disciplined approach to our investment decision making process.

We diversify our exposure through investing in three key sectors and intentionally build several platforms within a sector. In all of our listed and unlisted investee companies in which we own considerable shares, regular risk management reviews are conducted and plans of actions are followed up judiciously to minimize risks in the respective investee companies.

We strive to maintain a broad access to funding sources both in the debt and equity markets. In 2015, we issued an exchangeable bond and tapped into fixed income market. At the same time, we continued to maintain strong ties with banks and investors. Our borrowing maturity profile is aligned with our investment duration. Additionally, we maintain efficient and low cost operations at the parent level.

Our investments such as in PT Adaro Energy Tbk., PT Tri Wahana Universal, and PT Sinar Mentari Prima with USD income provide some natural hedge to our USD liabilities.Several of our investee companies are able to lock prices in long term sales contract thereby offering some mitigation against adverse market movements.In 2015, we managed to issue an exchangeable bond with fixed coupon which reduces our exposure to interest rate hike.We manage our USD liabilities through the spot market while continue to look at more long-term hedging opportunities.

Succession planning is critical. As part of our human resources program, we have developed both succession plan and talent management. The Nomination and Remuneration Committee oversees the succession planning and performance review of our senior executives.

We select our employees and our representatives in the investee companies carefully and thoroughly. Our Human Resources Division provides clear guidance for the employees, through code of conduct, training and socialization to ensure compliance to rules and regulations.To align the interests of employees and the Company, individual performance reviews and bonuses are carried out on the basis of the Company’s performance.

Compliance to prevailing laws and regulations is our top priority. We strive to comply with all laws and regulations related to our business activities and update our knowledge on changes to prevailing laws and regulations.We ensure the Company follows the regulatory rules and requirements in the area of capital market, as well as obtains protection against foreseeable legal risks, and when deemed necessary, may work closely with legal consultants to strengthen legal risk mitigation.


I M P L E M E N T A T I O N O F T H E

C O R P O R A T E G O V E R N A N C E G U I D A N C E

On 17 November 2015, the Financial Services Authority issued a Circular Letter

No. 32/SEOJK.04/2015 on the Corporate Governance Guidance for Public

Companies. This guidance consists of 5 (five) aspects, 8 (eight) principles, and

25 (twenty five) recommendations on the implementation of aspects and principles

of a good corporate governance. Public companies are recommended to implement

such recommendations and if the public companies have not implemented such

recommendations yet, such public companies shall provide an explanation and

alternative implementation (if any) (Comply or Explain principle).

CHAPTER 6 IMPLEMENTATION OF THE CORPORATE GOVERNANCE GUIDANCE


R E C O M M E N D A T I O N S R E M A R K S

Public Companies have voting procedures, either for open voting or close voting, which focusing on independency and the interest of the shareholders.

All members of the Board of Directors and the Board of Commissioners of the public companies are present in the Annual General Meeting of Shareholders.

Summary of the minutes of the General Meeting of Shareholders are available on the website of the public companies for at least 1 (one) year.

The public companies have a communication policy with the shareholders or investors.

The public companies disclose such communication policy with the shareholders or investors on the website.

Determination on the number of the member of the Board of Commissioners considering the condition of the public companies.

Determination on the composition of the member of the Board of Commissioners based on the variety of required skill, knowledge, and experience.

The Board of Commissioners shall have self-assessment policy to assess the performance of the Board of Commissioners.

Such self-assessment policy to assess the performance of the Board of Commissioners shall be disclosed in the Annual Report of the public companies.

The Board of Commissioners has a policy with regards to the resignation of the member of the Board of Commissioners if being involved in financial crime.

The Board of Commissioners or the Nomination and Remuneration Committee prepares succession policy for nomination process of a member of the Board of Directors.

Determination on the number of the member of the Board of Directors considering the condition of the public companies and effectivity in making a decision.

Determination on the composition of the member of the Board of Directors based on the variety of required skill, knowledge, and experience.

The Director supervises the accounting or financial division shall has the skill and/or knowledge in accounting sector.

The Board of Directors shall have self-assessment policy to assess the performance of the Board of Directors.

Such self-assessment policy to assess the performance of the Board of Directors shall be disclosed in the Annual Report of the public companies.

The Board of Directors has a policy with regards to the resignation of the member of the Board of Directors if being involved in financial crime.

The public companies have a policy to avoid insider trading.

The public companies have anti-corruption and anti-fraud policy.

The public companies have a policy on selecting and improving the performance of its supplier or vendor.

The public companies have a policy with regards to the compliance of the creditors’ rights.

The public companies have whistleblowing system policy.

The public companies have a policy on granting long term incentives to the Board of Directors and the employees.

The public companies utilize the information technology more broadly other than the website as the media for disclosure of information.

The Annual Report of the public companies disclose the ultimate beneficial owner in the shareholding of the public companies at least 5% (five percent), other than the disclosure of the ultimate beneficial owner in the shareholding of the public companies through the main shareholder and the controller.

Complied

Complied

Complied

Complied

Complied

Complied

Complied

Complied

Complied

Complied

Complied

Complied

Complied

Complied

Complied

Complied

The Company already has BOD Charter, Code of Conduct, Corporate Governance Code and Company Regulation, however, specific provisions on this matter is still being prepared.

Complied

Complied

Not relevant with the Company's business activities

Complied

Complied

Complied

Complied

Complied


56

C O R P O R A T E D A T A

INFORMATION ON THE COMPANY

Company/Name: PT Saratoga Investama Sedaya, Tbk.

Address : Menara Karya 15th FloorJalan HR Rasuna Said Block X-5 Kav. 1-2Jakarta Selatan, 12950, INDONESIA

Telephone : 6221 – 5794 4355

Facsimile : 6221 – 5794 4365

Email : [email protected] [email protected]

Website : www.saratoga-investama.com

Authorized Capital : 9,766,680,000 shares with nominal value of IDR100 per share

Issued and Paid-Up Capital: 2,712,967,000 shares

Stock Exchange Listing: Listed on Indonesia Stock Exchange on 26 June 2013

Stock Ticker Symbol: SRTG

BUSINESS LINES

As described in our Articles of Association, the main purposes and objectives of the Company is to carry out trading activities and investment businesses in the subsidiaries engaging among others in sector of natural resources and energy, mining, agriculture, plantation, forestry, infrastructure, manufacture, production, automotive, distribution, trading, technology, property, telecommu-nication, transportation, health, financial services, and other services.

In pursuing its purposes and objectives, the Company may carry out the following main business activities:• To establish new companies or subscribe shares in other companies either

directly or indirectly;• To divest or dispose shares upon the companies in which the Company has

subscribed, either directly or indirectly.

To support such main business activities, the Company may engage in the supporting activities as follows:• To provide funding and/or financing needed by the companies in which

the Company has subscribed for its shares, either directly or indirectly;• To provide funding and/or financing needed by other companies within

the framework of subscription of shares in such companies or such companies’ group or within the framework of investment of other assets in such companies or companies’ group; and

• To provide management services needed by the subsidiaries or companies where the Company has invested either directly or indirectly, in order to carry out its business activities.

CHAPTER 7 CORPORATE DATA


O R G A N I Z A T I O N S T R U C T U R E

B O A R D O F C O M M I S S I O N E R S

E D W I N S O E R Y A D J A Y A P R E S I D E N T C O M M I S S I O N E R

J O Y C E S O E R Y A D J A Y A K E R R

I N D R A C A H Y A U N O

A N A N G G A W . R O O S D I O N O I N D E P E N D E N T

S I D H A R T A U T A M A I N D E P E N D E N T

N O M I N A T I O N & R E M U N E R A T I O N

C O M M I T T E E

A N A N G G A W . R O O S D I O N O ( C H A I R M A N )

E D W I N S O E R Y A D J A Y A

H A N D I A N T O G A N I S

B O A R D O F D I R E C T O R S

P R E S I D E N T D I R E C T O R

M I C H A E L W . P . S O E R Y A D J A Y A

B U D G E T I N G , A C C O U N T I N G ,

F I N A N C E & I N F O R M A T I O N

S Y S T E M D I V I S I O N H E A D

T O M M Y T J I A

L E G A L & C O R P O R A T E

S E C R E T A R I A L D I V I S I O N H E A D

S A N D I R A H A J U

H U M A NR E S O U R C E S &

G E N E R A L A F F A I RD I V I S I O N H E A D

H A N D I A N T O G A N I S

C O R P O R A T EC O M M U N I C A T I O N

D I V I S I O N H E A D

C A T H A R I N A L A T J U B A

B U S I N E S S D E V E L O P M E N T

T E A M

P O R T F O L I O O P E R A T I O N

T E A M

I N T E R N A L A U D I TU N I T H E A D

L I L Y H E R A W A T I

A U D I T C O M M I T T E E

S I D H A R T A U T A M A

( C H A I R M A N )

A L I D A B A S I R A S T A R S I S

L U D O V I C U S S E N S I W .

I N V E S T O RR E L A T I O N


A L B E R T S A P U T R O

I N V E S T M E N T C O M M I T T E E

E D W I N S O E R Y A D J A Y A

( S U P E R V I S O R )

M I C H A E L W . P . S O E R Y A D J A Y A( C H A I R M A N )

A N D I E S F A N D I A R I

L A N Y D . W O N G

F I N A N C E D I R E C T O R

L A N Y D . W O N G

B U S I N E S S D E V E L O P M E N T

D I R E C T O R

M I C H A E L W . P . S O E R Y A D J A Y A

P O R T F O L I O D I R E C T O R

A N D I E S F A N D I A R I

R I S KM A N A G E M E N T


T O M M Y T J I A

C O R P O R A T E T A X D I V I S I O N H E A D

O L I V I A M .


EDWIN SOERYADJAYAPresident Commissioner

Edwin Soeryadjaya, 69 years old, an Indonesian Citizen, was appointed as the Company’s President Commissioner by the Extraordinary GMS on 22 January 1997 until currently, and also serves as the Supervisor of the Investment Committee of the Company and the member of the Nomination and Remuneration Committee of the Company. He is also one of the main shareholders of the Company and is affiliated with Michael W.P. Soeryadjaya, the President Director of the Company and Joyce Soeryadjaya Kerr, the Commissioner of the Company.

He started his career in 1978 at Astra International, one of Indonesia's largest diversified conglomerates founded by his father. In 1993, he left his position as the Vice President Director and co-founded the Company which focuses on three pillars, i.e. natural resources, infrastructure and consumer products. In 1995, under a KSO scheme designed by the Government of Indonesia in cooperation with the World Bank, Edwin successfully led AriaWest team to win a 15-year KSO worth of +USD900,000,000.

He currently serves as the President Commissioner of PT Adaro Energy Tbk (coal & energy), PT Tower Bersama Infrastructure Tbk (telecommunication towers), PT Merdeka Copper Fold Tbk (gold and copper mining) and PT Mitra Pinasthika Mustika Tbk (consumer automotive). He is also the Chairman (Non-Executive) in Interra Resources Limited (oil and gas). A long-time proponent of education, he remains active in the community through his roles as co-founder of the William Soeryadjaya Foundation (currently known as William Lili Foundation) and is the Chairman of the Board of Trustees of Ora Et Labora Foundation.

Edwin Soeryadjaya graduated from the University of Southern California with a Bachelor of Business Administration in 1974 and was awarded as Ernst & Young Entrepreneur of the Year in 2010.

.

JOYCE SOERYADJAYA KERRCommissioner

Joyce Soeryadjaya Kerr, 68 years old, an Indonesian Citizen, was appointed as the Commissioner of the Company by the Extraordinary GMS on 31 August 1999, and continues to serve at such capacity. She is affiliated with Edwin Soeryadjaya, the President Commissioner.

Currently, she serves as the Commissioner in PT Unitras Pertama, one of the main shareholder of the Company. Aside from that, she is the President Commissioner of PT Nonferindo Utama and the Managing Director of Inter-Astrea (HK) Limited.

She earned a Bachelor of Science from Southern California University, majoring in Language, Art and Science, specifically in German.

C O M M I S S I O N E R S ’ P RO F I L E S



INDRA CAHYA UNOCommissioner

Indra Cahya Uno, 52 years old, an Indonesian Citizen, was appointed as the Commissioner of the Company based on the Shareholders’ Resolution dated 14 May 2013, and continues to serve at such capacity. He is affiliated with Sandiaga Salahuddin Uno, one of the main shareholders of the Company.

Currently, he serves as the Commissioner of ANTV (PT Cakrawala Andalas Televisi, the leading entertainment terrestrial television channel in Indonesia). Indra is also the Chairman of Mien R. Uno Foundation (an organization for youth entrepreneurship education), the Vice Chairman of Budaya Luhur Foundation (a national curriculum middle and high school that focuses on active learning), the Commissioner of Jatis Mobile (PT Informasi Teknologi Indonesia, the leading mobile solution provider), and the founder of PT TPS Consulting Indonesia, a boutique strategic business transformation consultant and a certified member of the Indonesian Institute of Commissioners and Directors (a division of the National Committee on Corporate Governance).

He has a Doctor of Philosophy degree in Strategic Management from University of Indonesia, Master of Business Administration degree from University of Southern California, Master of Science degree in Aerospace Engineering from University of Michigan, and a Bachelor of Science degree in Aerospace Engineering from The Wichita State University.

ANANGGA W. ROOSDIONOIndependent Commissioner Chair of Nomination and Remuneration Committee

Anangga W. Roosdiono, 74 years old, an Indonesian Citizen, was appointed as the Independent Commissioner of the Company based on the Shareholders’ Resolution dated 13 March 2013 and also serves as the Chairman of the Nomination and Remuneration Commmittee.

He is the founder of Roosdiono & Partners, a full service corporate law firm and member firm of ZICOlaw network. Currently, he also lectures at the Business and Management School, Bandung Institute of Technology, at the Faculty of Law, Pelita Harapan University, and at the Executive Management School, Bina Nusantara University.

He is the Chairman of the Indonesian Arbitrators Institute and also a member in several institutions such as the International Bar Association, the Inter Pacific Bar Association, the Indonesian Bar Association, the Association of Indonesian Capital Market Legal Consultants, the Indonesian National Board of Arbitration, the Indonesian Sports Arbitration Body, the Kuala Lumpur Regional Center of Arbitration (KLRCA), the ASEAN Business Advisory Council, and the Indonesian Chamber of Commerce and Industry.

He has a Master of Law degree from Denver University, Colorado, and Bachelor of Law Degree from the University of Indonesia.

SIDHARTA UTAMAIndependent CommissionerChair of Audit Committee

Prof. Sidharta Utama, Ph.D., CFA, 53 years old, an Indonesian Citizen, was appointed as the Independent Commissioner of the Company by the Extraordinary GMS on 22 February 2013, and also serves as the Chairman of Audit Committee.

He is a professor at the Faculty of Economics, University of Indonesia, with research interest in the area of corporate governance and has been teaching at the university for more than 20 years.

Currently, he serves as a secretary of the Board of Trustees at the University of Indonesia, a member of the International Accounting Education Standards Board, a member of the Trustee Board – Indonesia Institute for Corporate Directorship, a member of the National Council – the Indonesian Institute of Chartered Accountants, a member of the Board of Advisory for Financial Accounting Policy of Bank Indonesia, a member ºof Accountancy Monitoring Committee Indonesia – Ministry of Finance, and a member of Supervision Committee of ASEAN Bond Fund. He is also serving as the Independent Commissioner at PT Astra International Tbk., as well as being the Audit Committee member at PT Indo Tambangraya Megah Tbk. and PT Holcim Indonesia Tbk.

He has a Doctor of Philosophy degree in Accounting from Texas A&M University, Master of Business Administration degree from Indiana University, and Bachelor of Economics degree from the University of Indonesia. He also holds a profession title i.e. Chartered Financial Analyst and Chartered Accountant.


LANY D. WONGFinance Director

Independent Director

Lany D. Wong, 49 years old, an Indonesian citizen, was appointed as Independent Director of the Company by the Annual GMS on 26 June 2018.

Previously, she served as Director and Chief Financial Officer of PT Dharma Satya Nusantara Tbk from 2016 until June 2018 and PT Medco Energi Internasional Tbk from 2013 until 2015. During her tenure in Medco from 2006, she held several positions as director of subsidiaries, Head of Corporate Finance, and Head of Corporate Planning and Performance. Prior to that, she worked at PricewaterhouseCoopers as a Manager of Financial Advisory Services, Arthur Andersen and Astra International.

She graduated with a degree in Economics (Accounting) from University of Indonesia in 1993, and subsequently earned a Master in Finance in 1996 from Texas A & M University, College Station, USA. She is also a Chartered Financial Analyst (CFA) since 2005.

She is not affiliated with the main shareholders, other directors and commissioner of the company.

D I R E C TO R S ’ P RO F I L E S

MICHAEL WILLIAM P. SOERYADJAYAPresident Director

Business Development Director

Michael William P. Soeryadjaya, 33 years old, an Indonesian citizen, was appointed as the President Director of the Company by the Extraordinary GMS on 10 June 2015. He is also the chair of the Investment Committee of the Company. He is affiliated with Edwin Soeryadjaya, the President Commissioner and one of the main shareholders of the Company.

Michael has extensive experience in merger and acquisitions including involvement in the Initial Public Offering of the Company, PT Mitra Pinasthika Mustika Tbk., and PT Merdeka Copper Gold Tbk. He has also overseen multiple investments by the Company, recently including PT Deltomed Laboratories, PT Famon Awal Bros Sedaya (Awal Bros Hospital Group), PT Agra Energi Indonesia, and PT MGM Bosco Logistics.

Currently he is also a Director of PT Merdeka Copper Gold Tbk. (gold and copper mining), and a Commissioner of PT Provident Agro Tbk. (palm plantation), and PT Gilang Agung Persada (lifestyle consumer products).

Michael obtained his Bachelor of Arts degree in Business Administration from Pepperdine University.

ANDI ESFANDIARIPortfolio Director

Andi Esfandiari, 50 years old, an Indonesian citizen, was appointed as the Director of the Company by the Extraordinary GMS on 1 December 2014.

Andi is a cross between an investment professional and corporate executive with more than 20 years of experience. As an investment professional, he has a wide range of expertise from transaction analysis to execution as well as board oversight. His past role as a Chief Financial Officer provided him with hand-on experiences in strategic planning, financial and risk management, internal audit, and shareholders communication.

He was previously with PT Austindo Nusantara Jaya Agri (Chief Financial Officer), Olympus Capital Holdings Asia (Associate), PT Peregrine Sewu Securities (Senior Analyst), and Citibank, N.A. (Management Associate).

Currently, he also represents the Company as director or commissioner in several subsidiaries where he assumes management, supervisory and/or advisory roles.

He graduated with a Bachelor of Engineering degree from the University of Indonesia. He also holds a Master of Business Administration degree in Finance from Case Western Reserve University, Cleveland, Ohio, United States of America.

He is not affiliated with the main shareholder, other directors and commissioner of the Company.



ALIDA BASIR ASTARSISMember of the Audit Committee

Alida Basir Astarsis, 69 years old, an Indonesian citizen, has been a member of the Audit Committee of the Company since June 2014. Currently she serves as a member of the Audit Committee of PT Garuda Metalindo Tbk., and Finance & Accounting Advisor of Surabaya Oncology Hospital. She is also a member of Indonesia Institute of Chartered Accountant and Indonesia Audit Committee Institute.

She was graduated with a Bachelor degree in Accounting from the University of Airlangga, Surabaya, and had more than 25 years of experience in PT Unilever Indonesia.

LUDOVICUS SENSI WONDABIO

Member of the Audit Committee

Ludovicus Sensi Wondabio, 54 years old, an Indonesian citizen, has been a member of the Audit Committee of the Company since July 2013. Currently, he also serves as the Senior Audit Partner of KAP Mirawati Sensi Idris (a member of Moore Stephens International) and a member of the Audit Committee of PT Tri Wahana Universal, one of the Company’s investee company. He is also a lectures at the Faculty of Economy and Business, University of Indonesia for Accounting and Auditing subject.

He earned a Doctoral Degree in Accounting Science Program, Master Degree in Management of Accounting, and Bachelor of Economic degree majoring in Accounting, all of them from the University of Indonesia.

HANDIANTO GANISMember of the Nomination and

Remuneration Committee

Handianto Ganis, 67 years old, an Indonesian citizen, has been appointed as member of the Nomination and Remuneration Committee of the Company by the BOC since April 2013 and as Human Resources Division Head of the Company since 2007. Currently, he also serves as the President Director of PT Trimitra Utama Selaras and the Commissioner of PT Rahman Abdijaya.

He graduated with a Bachelor Degree in Business Administration and Accounting from California State University, Los Angeles, as well as a Master of Business Administration degree from the University of Southern California, Los Angeles.

SANDI RAHAJULegal and Corporate Secretarial

Division Head

Sandi Rahaju, 50 years old, an Indonesian citizen, is currently the head of the Legal and Corporate Secretarial Division of the Company and is at the same time the person in charge of the Company’s Corporate Secretary function which is held by a working unit since July 2016. Formerly, until resigning in July 2016, Sandi Rahaju was a member to the Audit Committee of PT. Selamat Sempurna, Tbk and a member to the audit committee of PT. Mitra Investindo, Tbk.

Prior to joining the Company in 2007, she has had over than fifteen years working experience in a few corporations such as Taisei Corporation, an international construction company, PT Kideco Jaya Agung, an Indonesian coal mining company as well as in a couple of law firms in Indonesia, ie. Pelita Harapan Law Firm and finally, Hendra Soenardi. Sandi Rahaju graduated from the University of Technology, Sydney in 2007 and holds a doctorate degree in juridical science (SJD).

A D D I T I O NA L P RO F I L E S

LILY HERAWATIHead of Internal Audit Unit

Lily Herawati, 47 years old, an Indonesian citizen, was appointed as the Head of Internal Audit Unit effective as of 9 February 2016. She has more than 20 years of experience at Astra Group in corporate function, manufacturing industries and trading business. Her last position was as Division Head of Financial Planning Analysis, Division Head of Corporate Finance of PT. Astra Otoparts Tbk., as well as the Director of PT. Astra Otoparts Tbk.’s subsidiaries.

She obtained her undergraduate degree for Bachelor of Economics from Trisakti University, Jakarta. She is a Certified Management Accountant.


S H A R E H O L D I N G & C O M PA N Y S T RU C T U R E

JOYCE S. KERR

50.00%

EDWIN SOERYADJAYAPUBLIC

50.00%

31.05%

PT UNITRAS PERTAMA

31.68%

14.65% *)

15.24%

ADRO

MINING

As of 31 December 2018

AGRA

MDKA

Interra Resources

30%

20.76%

13.33%

SihayoGold

13.54%

NRCSerojaInvestment

7.12% 23.26%

POWER PLANT

TLGPALM

AMARA

TELECOMMUNICATION

TBIG

44.88%

25%

46.25%

NATURAL RESOURCES INFRASTUCTURES

SHIPPING CONSTRUCTION

32.70%

PALM PLANTATION



SANDIAGA S. UNO

22.62%

ADRO: PT Adaro Energy Tbk.AGII: PT Aneka Gas Industri Tbk.AGRA: PT Agra Energi IndonesiaAMARA: PT Agro Maju RayaBHA: PT Bumi Hijau AsriDELTOMED: PT Deltomed LaboratoriesFABS: PT Famon Awal Bros SedayaFJBL: PT FJB LifestyleGAP: PT Gilang Agung PersadaInterra Resources: Interra Resources LimitedMBL: PT Mulia Bosco LogistikMDKA: PT Merdeka Copper Gold Tbk.MOMENTA: PT Momenta AgrikulturaMPMX: PT Mitra Pinasthika Mustika Tbk.NRC: PT Nusa Raya Cipta Tbk.PALM: PT Provident Agro Tbk.Seroja Investment: Seroja Investment LimitedSihayo Gold: Sihayo Gold LimitedSSM: PT Satria Sukses MakmurTLG: PT Tenaga Listrik GorontaloTBIG: PT Tower Bersama Infrastructure Tbk.

*) Saratoga owns 0.03% of total paid-up capital as a result of the shares buyback transaction as of 31 December 2018.

SSM

BHAMBL FABS

99.99%

100%

7.5% 3.06%

LOGISTICS PROPERTY & RENT

CONSUMER PRODUCTS AND SERVICES

CONSUMER PRODUCTS HEALTH SERVICES

AGII

DELTOMED

FJBL

GAP

5.83%

8.33%

5.83%

MOMENTA

27.5%

6.92%

Saratoga’s Effective Shares Ownership

MPMX

48.62%


S H A R E H O L D I N G C O M P O S I T I O N & S TO C K P E R F O R M A N C E

PT Saratoga Investama Sedaya Tbk. listed a total of 2.71 billion shares on the Indonesia Stock Exchange on 26 June 2013, through an Initial Public Offering of 10% of its total shares raising net IPO proceeds of IDR1.42 trillion.

SHAREHOLDING COMPOSITION AS OF 31 DECEMBER 2017

Name No. of Shareholders No. of Shares Composition (%)

PT UNITRAS PERTAMA 1 885,000,000 32.621

EDWIN SOERYADJAYA 1 842,218,571 31.044

SANDIAGA SALAHUDDIN UNO 1 754,115,429 27.797

PUBLIC (DOMESTIC & FOREIGN)* 839 231,633,000 8.538

* Including the treasury shares from the buyback of shares conducted by the Company as per 31 December 2017 in the total of

1,291,100 shares (0.05%).

SHAREHOLDING COMPOSITION AS OF 31 DECEMBER 2018

Name No. of Shareholders No. of Shares Composition (%)

PT UNITRAS PERTAMA 1 859,500,000 31.681

EDWIN SOERYADJAYA 1 842,218,571 31.044

SANDIAGA SALAHUDDIN UNO 1 613,765,429 22.623

PUBLIC (DOMESTIC & FOREIGN)* 618 397,483,000 14.651

*including the treasury shares from the buyback of shares conducted by the Company as per 31 December 2018 in the total of

918,500 shares (0.03%).

SHAREHOLDERS RECORDED AS HOLDING MORE THAN 5% OF THE COMPANY’S SHARES AS OF 31

DECEMBER 2017 AND 31 DECEMBER 2018

2017 2018

Name No. of Shares Percentage No. of Shares Percentage

Ownership Ownership

PT UNITRAS PERTAMA 885,000,000 32.621 859,500,000 31.681

EDWIN SOERYADJAYA 842,218,571 31.044 842,218,571 31.044

SANDIAGA SALAHUDDIN UNO 754,115,429 27.797 613,765,-429 22.623

SHAREHOLDING OWNERSHIP BY THE BOARD OF COMMISSIONERS

2017 2018

Name Position No. of Shares Percentage No. of Shares Percentage

EDWIN SOERYADJAYA President Commissioner 842,218,571 31.044 842,218,571 31.044

JOYCE SOERYADJAYA KERR Commissioner - - - -

INDRA CAHYA UNO Commissioner - - - -

SIDHARTA UTAMA Independent Commissioner - - - -

ANANGGA W. ROOSDIONO Independent Commissioner - - - -

Total 842,218,571 31.044 842,218,571 31.044

SHAREHOLDING OWNERSHIP BY THE BOARD OF DIRECTORS

2017 2018

Name Position No. of Shares Percentage No.of Shares Percentage

MICHAEL WILLIAM P SOERYADJAYA President Director 71,200 0.0026 168,600 0.0062

ANDI ESFANDIARI Director 100,900 0.0037 363,000 0.0134

LANY D. WONG Independent Director - - - -

(FROM 26 June 2018)

Total 172,100 0.0063 531,600 0.0196

Use of proceeds from Initial Public Offerings has been fully realized on September 2015 and reported in the General Meeting of Shareholders in 15 June 2016



DISTRIBUTION OF SHAREHOLDING OWNERSHIP AS OF 31 DECEMBER 2017

Ownership Status No. of Shareholders No. of Shares Composition (%)

Domestic Shareholders

Indonesian Individual 763 1,614,584,500 59.514

Foundation 2 217,400 0.008

Pension Fund 3 802,700 0.029

Insurance 3 9,086,700 0.335

Limited Liability Company 14 893,270,700 32.926

Mutual Funds 4 10,010,200 0.369

Sub Total 789 2,527,972,200 93.181

Foreign Shareholders

Foreign Individual 12 1,637,300 0.060

Foreign Legal Entity 41 183,357,500 6.759

Sub Total 53 184,994,800 6.819

Total 842 2,712,967,000 100

DISTRIBUTION OF SHAREHOLDING OWNERSHIP AS OF 31 DECEMBER 2018

Ownership Status No. of Shareholders No. of Shares Composition (%)

Domestic Shareholders

Indonesian Individual 544 1,471,420,200 54.237

Foundation 1 155,000 0.006

Pension Fund 1 34,700 0.001

Insurance 1 1,342,500 0.049

Limited Liability Company 14 892,825,251 32.909

Mutual Funds 4 11,784,000 0.434

Sub Total 565 2,377,561,651 87.637

Foreign Shareholders

Foreign Individual 9 1,612,400 0.059

Foreign Legal Entity 47 333,792,949 12.304

Sub Total 56 335,405,349 12.363

Total 621 2,712,967,000 100


Listing Date Issued and Fully Authorized Fully Increase Issued and Paid Capital (shares) Capital (shares) Paid Capital (shares)

Initial Public Offering 26 June 2013 2,712,967,000 9,766,680,000 430,883,000

in Indonesia Stock Exchange (IDX)

CHRONOLOGY OF SHARE LISTING

No further shares issuance and no changes in the number of shares since the Initial Public Offering to 31 December 2018.

2017 2018

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Highest Price (IDR) 3,500 4,450 3,550 3,690 4150 4500 4500 4250

Lowest Price (IDR) 3,250 3,250 3,090 3,300 3570 3600 3510 3500

Closing Price (IDR) 3,290 3,300 3,290 3,580 3829 3999 3842 3807

Average Daily Trading Volume 61,915 712,765 159,916 193,874 120,508 67,620 76,007 72,076

Outstanding Shares 2,712,967,000 2,712,967,000 2,712,967,000 2,712,967,000 2,712,967,000 2,712,967,000 2,712,967,000 2,712,967,000 (shares)

Market Capitalization 8,925,661 8,952,791 8,925,661 9,712,422 10,386,725 10,850,240 10,422,939 10,329,371(IDR Million)

QUARTERLY SHARE MOVEMENT IN 2017 & 2018

Share Price (IDR)Volume (Share)

SHARE PERFORMANCE IN 2018

Jan 18 Feb 18 March 18 April 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Nov 18 Dec 18

Shar

e Pr

ice

(IDR

)

4600

4400

4200

4000

3800

3600

3400

3200

3000

2500000

2000000

1500000

1000000

500000

0

Volu

me

(sha

res)



N A M E A N D C O R R E S P O N D I N G A D D R E S S O F S U B S I D I A R I E S

PT Saratoga Sentra Business Menara Karya 15th Fl. Jl. H.R Rasuna Said Block X-5 Kav 1-2, Jakarta Selatan 12950Telp : +62 21 5794 4355Fax : +62 21 5794 4365

Line of BusinessInvestment

Year of Establishment2005

Year of Investment2005

Effective Ownership99.99%

PT Nugraha Eka Kencana Menara Karya 15th Fl. Jl. H.R Rasuna Said Block X-5 Kav 1-2, Jakarta Selatan 12950Telp : +62 21 5794 4355Fax : +62 21 5794 4365


Year ofEstablishment2003



PT Wahana Anugerah Sejahtera Menara Karya 15th Fl. Jl. H.R Rasuna Said Block X-5 Kav 1-2, Jakarta Selatan 12950Telp : +62 21 5794 4355Fax : +62 21 5794 4365





PT Bumi Hijau AsriMenara Karya 15th Fl. Jl. H.R Rasuna Said Block X-5 Kav 1-2, Jakarta Selatan 12950Telp : +62 21 5794 4355Fax : +62 21 5794 4365







PT Surya Nuansa CeriaMenara Karya 15th Fl.Jl. H.R. Rasuna Said Block X-5 Kav 1-2,Jakarta Selatan 12950Telp : +62 21 5794 4355Fax : +62 21 5794 4365





PT Trimitra Karya JayaMenara Karya 15th Fl.Jl. H.R. Rasuna Said Block X-5 Kav 1-2,Jakarta Selatan 12950Telp : +62 21 5794 4355Fax : +62 21 5794 4365




PUBLIC ACCOUNTANTKAP Siddharta Widjaja & Rekan (a member of KPMG Global Network)33rd Floor Wisma GKBI Jl Jend. Sudirman Kav. 28Jakarta 10210, IndonesiaT. (62-21) 574 2333 F. (62-21) 574 1777

SHARE REGISTRARPT Datindo EntrycomJl. Hayam Wuruk No. 28Jakarta 10210, IndonesiaT. (62-21) 350 8077 (Hunting)F. (62-21) 350 8078

CAPITAL MARKET INSTITUTIONIndonesia Financial Services AuthorityGedung Sumitro DjojohadikusumoJl. Lapangan Banteng Timur No. 2-4Jakarta 10710, IndonesiaT. (62-21) 385 8001F. (62-21) 385 8321

Indonesia Stock ExchangeIndonesia Stock Exchange Building, 1st TowerJl. Jend. Sudirman Kav 52-53Jakarta Selatan 12190, IndonesiaT. (62-21) 5150515F. (62-21) 5150330

Indonesian Central Securities Custodian (KSEI)Gedung Bursa Efek Indonesia Tower 1 5th FloorJl. Jend. Sudirman Kav. 52-53Jakarta 12190, IndonesiaT. (62-21) 515 2855F. (62-21) 5299 1199

COMPANY INDEPENDENT ACCOUNTANTBased on the Circular Resolution in lieu of a Meeting

of the Board of Commissioners dated 25 June 2018, the BOC approved the appointment of Public Accountant Firm Siddharta Widjaja & Rekan (a member of KPMG global network) to audit the Company’s financial statement for the financial year ended on 31 December 2018.

The year 2018 was the sixth year for the Company to appoint Public Accounting Firm Siddharta Widjaja & Rekan (a member of KPMG global network) and the second year for Public Accountant Cahyadi Muliono, S.E., CPA, to serve as the accountant to sign the Independent Auditor’s Report for fiscal year 2018, in conducting an audit on financial statements of the Company. The appointed Public Accounting Firm has completed its work independently, according to professional standards of public accountant, and the agreed contracts and scope of audit work.

During 2018, Public Accounting Firm Siddharta Widjaja & Rekan (a member of KPMG global network) has not provided another consulting services to the Company.

Financial Year Public Accountant Audit Fee

2018 Siddharta Widjaja & Rekan IDR 2,360,403,000

2017 Siddharta Widjaja & Rekan DR 2,154,132,000

SHARE REGISTRARAgreement on the administration of the Company’s share

with regard to Initial Public Offering (IPO) is stated on the Deed of Share Administration Management Agreement No. 54 dated 10 April 2013 made before Humberg Lie, S.H., S.E., M.Kn., Notary in Jakarta.

Currently, PT Datindo Entrycom as the Share Register provides administration service for secondary market. PT Datindo Entrycom is responsible for the administration of shareholders list including changes in the shareholder list on behalf of the public company.

The Company pays an annual fee for the administration service in the secondary market of Rp44,000,000 (including VAT).

INDONESIAN CENTRAL SECURITIES CUSTODIAN (KSEI)

Public companies whose shares/securities are registered in KSEI use KSEI’s services to administer their issued shares/securities in order to obtain data of investors or securities holders as part of distribution process in corporate actions. The Company pays annual fee for membership of Rp11,000,000 (including VAT).

N A M E S A N D A D D R E S S O F AG E N C I E S A N D / O R C A P I TA L M A R K E T S U P P O RT I N G P RO F E S S I O N A L



We, the undersigned, do hereby declare that all information in the 2018 Annual Report of PT Saratoga Investama Sedaya Tbk. are presented in full and that we are fully accountable for the accuracy of the information contained in said Annual Report.

We attest to the integrity of this statement,

Jakarta, 31 March 2019

Board of Commissioners

Edwin Soeryadjaya Joyce Soeryadjaya Kerr Indra Cahya UnoPresident Commissioner Commissioner Commissioner

Sidharta Utama Anangga W. Roosdiono Independent Commissioner Independent Commissioner

Board of Directors

Michael William P. Soeryadjaya Andi Esfandiari Lany D. Wong President Director Director Independent Director

STATEMENTS OF RESPONSIBILITY BY THE MEMBERS OF THE BOARD OF COMMISSIONERS AND BOARD OF DIRECTORS


CONSOLIDATED FINANCIAL STATEMENTS

REFERENCE SEOJKNO. 30-SEOJK.04-2016: ANNUAL REPORT OF PUBLIC COMPANY


PT SARATOGA INVESTAMA SEDAYA Tbk.

DAN ENTITAS ANAK PT SARATOGA INVESTAMA SEDAYA Tbk.

AND SUBSIDIARIES

DAFTAR ISI CONTENTS Ekshibit/ Exhibit Pernyataan Direksi Tentang Tanggung Jawab Board of Directors’ Statement of Responsibility Laporan Keuangan Konsolidasian

Tahun Berakhir 31 Desember 2018 dan 2017:

Consolidated Financial Statements Years Ended 31 December 2018 and 2017:

Laporan Posisi Keuangan Konsolidasian A Consolidated Statements of Financial Position

Laporan Laba Rugi dan Penghasilan Komprehensif Lain Konsolidasian B

Consolidated Statements of Profit or Loss and Other Comprehensive Income

Laporan Perubahan Ekuitas Konsolidasian C Consolidated Statements of Changes in Equity

Laporan Arus Kas Konsolidasian D Consolidated Statements of Cash Flows

Catatan atas Laporan Keuangan Konsolidasian E Notes to the Consolidated Financial Statements

Laporan Auditor Independen Independent Auditors’ Report


FINANCIAL REPORTS


Ekshibit A Exhibit A

PT SARATOGA INVESTAMA SEDAYA Tbk. DAN ENTITAS ANAK

LAPORAN POSISI KEUANGAN KONSOLIDASIAN 31 DESEMBER 2018 DAN 2017

(Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT SARATOGA INVESTAMA SEDAYA Tbk. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

31 DECEMBER 2018 AND 2017

(Expressed in millions of Rupiah, unless otherwise stated)

Catatan/ Notes

31 Desember/ December 2018

31 Desember/ December

2017* 1 Januari/

January 2017* ASET ASSETS

Kas dan setara kas 4 782.337) 902.173) 488.439 Cash and cash equivalentsKas yang dibatasi penggunaannya 6 518) 7.859) 269.737 Restricted cash Piutang, bersih 5,18 365.900) 623.283) 380.600 Receivables, netPajak dibayar di muka 9a 819) 136) 976 Prepaid taxesUang muka dan beban dibayar di muka 1.662) 12.569) 667 Advances and prepaid expensesInvestasi pada efek ekuitas 7 18.730.170) 24.755.150) 23.801.617 Investments in equity securities Uang muka investasi pada efek ekuitas 97.302) 93.657) 68.548 Advances for investments in equity securitiesEquity share swap 11 -) 54.792) 42.477 Equity share swapAset keuangan derivatif 8 49.675) 52.065) - Derivative financial assetsProperti investasi 82.328) 122.807) 84.635 Investment properties Aset lainnya 4.163) 5.102) 6.576 Other assets

JUMLAH ASET 20.114.874) 26.629.593) 25.144.272 TOTAL ASSETS

LIABILITAS LIABILITIES

Utang lainnya ke pihak ketiga 309) 85) 201 Other payables to third partiesUang muka penjualan investasi )- ) -) 258.153 Advance from sale of investment Beban akrual 4.226) 3.741) 20.961 Accrued expensesUtang pajak penghasilan 9b 46.691) 130.430) 37.375 Income tax payableUtang pajak lainnya 9c 1.493) 13.103) 22.400 Other taxes payablePendapatan diterima dimuka 5.204) 1.362) - Unearned revenuePinjaman 10 3.937.919) 2.465.413) 2.791.798 Borrowings Wesel bayar jangka menengah -) -) 721.108 Medium term notesObligasi Tukar 11 -) 958.639) 1.061.926 Exchangeable BondsLiabilitas keuangan derivatif 8 13.279) -) - Derivative financial liabilitiesLiabilitas pajak tangguhan, bersih 9e 121.641) 752.292) 846.645 Deferred tax liabilities, netLiabilitas imbalan kerja 19.864) 17.169) 17.168 Employee benefits liabilities

JUMLAH LIABILITAS 4.150.626) 4.342.234) 5.777.735 TOTAL LIABILITIES

EKUITAS EQUITY

Modal saham nilai nominal Share capital at par value

Rp100 (Rupiah penuh) per saham Rp100 (whole Rupiah) per share Modal dasar 9.766.680.000 lembar saham Authorized capital 9,766,680,000 shares Modal ditempatkan dan disetor penuh 2.712.967.000 lembar saham

12 271.297 271.297) 271.297

Issued and fully paid-up capital 2,712,967,000 shares

Tambahan modal disetor 13 5.185.019 5.184.989) 5.184.989 Additional paid-in capital Saham treasuri 3e,12 (3.984) (5.406) (9.389) Treasury sharesAkumulasi pembayaran berbasis saham 3j 46.124 30.831) 24.037 Accumulated share-based paymentsSelisih penjabaran laporan keuangan

dalam mata uang asing

3f 26.813 26.767) 26.762 Difference in translation of

financial statements in foreign currency Komponen ekuitas lainnya 24.500 24.500) 23.282 Other equity components Saldo laba 10.105.699 16.500.028) 13.463.356 Retained earnings EKUITAS YANG DIATRIBUSIKAN KEPADA

PEMILIK PERUSAHAAN

15.655.468 22.033.006) 18.984.334 EQUITY ATTRIBUTABLE TO

OWNERS OF THE COMPANY

Kepentingan nonpengendali 2f,14 308.780 254.353) 382.203 Non-controlling interests

JUMLAH EKUITAS 15.964.248 22.287.359) 19.366.537 TOTAL EQUITY

JUMLAH LIABILITAS DAN EKUITAS 20.114.874 26.629.593) 25.144.272 TOTAL LIABILITIES AND EQUITY

* Disajikan kembali (lihat Catatan 2g) As restated (see Note 2g) *

Lihat catatan atas laporan keuangan pada Ekshibit E terlampir yang merupakan bagian tidak terpisahkan

dari laporan keuangan secara keseluruhan

See notes to the financial statements on

the accompanying Exhibit E which are an integral part

of the financial statements taken as a whole


Ekshibit B Exhibit B


LAPORAN LABA RUGI DAN PENGHASILAN KOMPREHENSIF LAIN KONSOLIDASIAN

TAHUN BERAKHIR 31 DESEMBER 2018 DAN 2017 (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)

PT SARATOGA INVESTAMA SEDAYA Tbk. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER

COMPREHENSIVE INCOME YEARS ENDED 31 DECEMBER 2018 AND 2017


Catatan/ Tahun berakhir 31 Desember

Years ended 31 December Notes 2018 2017*

(Kerugian) keuntungan bersih atas investasi pada

efek ekuitas

15a (7.251.251) 2.356.526)) Net (loss) gain on investments in equity

securities Penghasilan dividen, bunga dan investasi lainnya 15b 1.146.608) 1.539.443) Dividend, interest and other investment incomePendapatan lainnya 15.200) 34.165) Other incomePerubahan nilai wajar properti investasi 1.188) (22.830) Changes of fair value of investment propertiesBeban usaha 16 (138.387) (212.717) Operating expensesBeban penyisihan piutang tak tertagih 5 (36.708) (44.825) Bad debt expenseBeban lainnya (49.104) (22.034) Other expensesKerugian neto selisih kurs 3f (150.383) (27.864) Net loss on exchange rate differences Keuntungan atas nilai wajar equity share swap 11 24.360) 12.315) Gain on fair value of equity share swapKeuntungan (kerugian) nilai wajar atas obligasi

tukar

11 7.086) (65.636) Gain (loss) on fair value of exchangeable

bonds Keuntungan neto atas instrumen keuangan derivatif

lainnya

3a,8 28.306) 52.065) Net gain on other derivative financial

instruments Beban bunga 3a (281.971) (348.016) Interest expenses

(RUGI) LABA SEBELUM PAJAK (6.685.056) 3.250.592) (LOSS) PROFIT BEFORE TAX

Manfaat (beban) pajak penghasilan 9f Income tax benefit (expense)Kini (80.762) (182.789) Current Tangguhan 630.986) 93.835) Deferred

550.224) (88.954)

(RUGI) LABA TAHUN BERJALAN (6.134.832) 3.161.638) (LOSS) PROFIT FOR THE YEAR PENGHASILAN KOMPREHENSIF LAIN: OTHER COMPREHENSIVE INCOME:

Pos-pos yang tidak akan direklasifikasikan ke laba

rugi

Items that will never be reclassified to profit

or loss Pengukuran kembali atas kewajiban imbalan

pasti

1.342) (2.073) Remeasurements of defined benefits

obligation Pajak penghasilan terkait pos-pos yang tidak

direklasifikasi ke laba rugi

(335) 518) Tax on items that will never be reclassified

to profit or loss 1.007) (1.555) Pos-pos yang akan direklasifikasikan ke Items that will be reclassified subsequently

laba rugi to profit or loss Selisih penjabaran laporan keuangan dalam mata

uang asing

3f

62) 7) Difference in translation of financial

statements in foreign currencies

JUMLAH PENGHASILAN (KERUGIAN) KOMPREHENSIF LAIN

1.069

(1.548) TOTAL OTHER COMPREHENSIVE INCOME (LOSS)

JUMLAH (KERUGIAN) PENGHASILAN KOMPREHENSIF TAHUN BERJALAN

(6.133.763) 3.160.090)

TOTAL COMPREHENSIVE (LOSS) INCOMEFOR THE YEAR

(Rugi) laba tahun berjalan yang diatribusikan

kepada:

(Loss) profit for the year attributable to:Pemilik Perusahaan (6.194.577) 3.274.027) Owners of the Company Kepentingan nonpengendali 59.745) (112.389) Non-controlling interests

(6.134.832) 3.161.638)

Jumlah (kerugian) penghasilan komprehensif tahun berjalan yang diatribusikan kepada:

Total comprehensive (loss) income for the yearattributable to:

Pemilik Perusahaan (6.193.524) 3.272.477) Owners of the Company Kepentingan nonpengendali 59.761) (112.387) Non-controlling interests

(6.133.763) 3.160.090)

(Rugi) laba per saham (Rupiah penuh): (Loss) earnings per share (whole Rupiah): Dasar 17a (2.284) 1.208) Basic Dilusian 17b (2.270) 1.204) Diluted

* Disajikan kembali (lihat Catatan 2g) As restated (see Note 2g) *



See notes to the financial statements on the accompanying Exhibit E which are an integral part


FINANCIAL REPORTS


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FINANCIAL REPORTS


Ekshibit D Exhibit D


LAPORAN ARUS KAS KONSOLIDASIAN TAHUN BERAKHIR 31 DESEMBER 2018 DAN 2017


PT SARATOGA INVESTAMA SEDAYA Tbk. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED 31 DECEMBER 2018 AND 2017 (Expressed in millions of Rupiah, unless otherwise stated)

Catatan/ Tahun berakhir 31 Desember/

Years ended 31 December

Notes 2018 2017

Arus kas dari aktivitas operasi Cash flows from operating activities

Penerimaan dividen 939.706) 808.989) Receipts of dividends Penerimaan pendapatan keuangan, jasa manajemen

dan pendapatan lainnya 38.289) 322.028) Finance income, management fees and other

income received Penerimaan dari penjualan investasi pada efek

ekuitas 558.398) 2.048.863) Proceeds from sales of investments in equity

securities Penerimaan dari penjualan properti investasi 41.666) -)

Proceeds from sales of investments properties

Pembayaran beban keuangan (273.002) (364.787) Finance costs paid Penempatan investasi pada efek ekuitas (1.551.512) (245.022) Purchases of equity securities Pembayaran kepada karyawan (62.019) (96.875) Payments to employees Penerimaan (pemberian) piutang 244.494) (225.336) Collection of (provision for) receivables Pembayaran uang muka investasi (51.754) (92.296) Advances paid for purchases of investments Pembayaran pajak penghasilan (164.501) (89.734) Income tax paid Pembayaran kas untuk beban operasi lainnya (98.694) (143.323) Cash payments for other operating expenses

Kas neto (untuk) dari aktivitas operasi (378.929) 1.922.507)

Net cash (used in) from operating activities

Arus kas dari aktivitas investasi

Cash flows from investing activity

Perolehan aset tetap/Kas neto untuk aktivitas investasi (162)

(39)

Acquisition of fixed assets/Net cash used in investing activity

Arus kas dari aktivitas pendanaan Cash flows from financing activities

Penerimaan dari pinjaman bank 3.053.274) 668.500) Proceeds from bank loans Pembayaran pinjaman bank (1.727.782) (1.027.117) Repayment of bank loans Pembayaran wesel bayar jangka menengah -) (725.000) Repayment of medium term notes Penebusan kembali obligasi tukar 11 (957.681) (176.631) Redemption of exchangeable bonds Pembelian saham treasuri 12 (6.549) (2.057) Purchase of treasury shares Tambahan modal disetor dari amnesti pajak 30) -) Additional paid in capital from tax amnesty Pembayaran dividen (200.759) (235.800) Payments of dividends Perubahan pada kas yang dibatasi penggunaannya 7.341) 3.725) Changes in restricted cash

Kas neto dari (untuk) aktivitas pendanaan 167.874) (1.494.380) Net cash from (used in) financing activities (Penurunan) kenaikan neto kas dan setara kas (211.217) 428.088)

Net (decrease) increase in cash and cash equivalents

Pengaruh perubahan selisih kurs dari kas dan setara kas 91.381) (14.354)

Effect of changes in exchange rates on cash and cash equivalents

Kas dan setara kas pada awal tahun 902.173) 488.439)

Cash and cash equivalents at beginning of year

Kas dan setara kas pada akhir tahun 782.337) 902.173) Cash and cash equivalents at end of year



See notes to the financial statements on the accompanying Exhibit E which are an integral part



Ekshibit E/1 Exhibit E/1


CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN TAHUN BERAKHIR 31 DESEMBER 2018 DAN 2017



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED 31 DECEMBER 2018 AND 2017


1. UMUM 1. GENERAL

a. Pendirian Perusahaan dan informasi lainnya a. Establishment of the Company and other information

PT Saratoga Investama Sedaya Tbk. (“Perusahaan”) didirikan di Jakarta berdasarkan Akta Notaris No.41 tanggal 17 Mei 1991 juncto Akta Notaris No.33 tanggal 13 Juli 1992, keduanya dari Ny. Rukmasanti Hardjasatya, SH., Notaris di Jakarta. Akta Pendirian Perusahaan tersebut telah memperoleh pengesahan dari Menteri Kehakiman (sekarang Menteri Hukum dan Hak Asasi Manusia) Republik Indonesia berdasarkan Surat Keputusan No.C2–10198.HT.01.01.TH92 tanggal 15 Desember 1992 dan telah diumumkan dalam Berita Negara Republik Indonesia No.19 tanggal 5 Maret 1993, Tambahan No.973.

PT Saratoga Investama Sedaya Tbk. (the “Company”) was established in Jakarta based on Notarial Deed No.41 dated 17 May 1991 in conjuction with Notarial Deed No.33 dated 13 July 1992, both of Ny. Rukmasanti Hardjasatya, SH., Notary in Jakarta. The Deed of Establishment was approved by the Minister of Justice (now known as the Minister of Law and Human Rights) of the Republic of Indonesia by virtue of decree No.C2-10198.HT.01.01.TH92 dated 15 December 1992 and was published in the State Gazette of the Republic of Indonesia No.19 dated 5 March 1993, Supplement No.973.

Anggaran Dasar Perusahaan telah mengalami beberapa kali perubahan, terakhir dengan Akta Notaris No. 113 tanggal 26 April 2017 dari Jose Dima Satria S.H., M.Kn, Notaris di Jakarta, mengenai perubahan Pasal 3 Anggaran Dasar Perusahaan.

The Company’s Articles of Association have been amended several times, most recently by Notarial Deed No. 113 dated 26 April 2017 of Jose Dima Satria S.H., M.Kn, Notary in Jakarta, concerning the amendment of Article 3 of the Company’s Articles of Association.

Perusahaan berkedudukan di Jakarta Selatan dengan alamat di Menara Karya Lantai 15, Jl. H.R. Rasuna Said Blok X-5, Kav.1-2. Perusahaan memulai kegiatan komersialnya pada tahun 1992.

The Company is domiciled in South Jakarta, with its address at Menara Karya Lantai 15, Jl. H.R. Rasuna Said Blok X-5, Kav.1-2. The Company commenced its commercial activities in 1992.

Sesuai dengan Pasal 3 Anggaran Dasar Perusahaan, kegiatan usaha Perusahaan adalah menjalankan kegiatan perdagangan dan usaha investasi pada perusahaan-perusahaan yang bergerak di bidang sumber daya alam dan energi, pertambangan, pertanian, perkebunan, kehutanan, infrastruktur, manufaktur, produksi, otomotif, distribusi, perdagangan, teknologi, properti, telekomunikasi, transportasi, kesehatan, jasa keuangan, dan jasa lainnya. Perusahaan merupakan entitas yang aktif melakukan investasi.

In accordance with Article 3 of the Company’s Articles of Association, the Company’s scope of activities is to conduct business and investment activities in companies in the sectors of natural resources and energy, mining, agricultural, plantation, forestry, infrastructure, manufacturing, production, automotive, distribution, trade, technology, property, telecommunication, transportation, health sectors, financial services, and other services. The Company is an active investment entity.

Induk Perusahaan adalah PT Unitras Pertama. Entitas ini memiliki entitas anak dan afiliasi di Indonesia.

The parent of the Company is PT Unitras Pertama. The entity has subsidiaries and affiliates in Indonesia.

Pemegang saham mayoritas akhir Perusahaan adalah Tn. Edwin Soeryadjaya dan Ibu Joyce Soeryadjaya Kerr. Pada tanggal 31 Desember 2018 dan 2017, Perusahaan dan entitas anaknya (secara kolektif disebut sebagai “Grup”).

The ultimate majority shareholders of the Company are Mr. Edwin Soeryadjaya and Mrs. Joyce Soeryadjaya Kerr. As of 31 December 2018 and 2017, the Company and its subsidiaries (collectively referred to as the “Group”).

b. Dewan komisaris, direksi, komite audit dan

karyawan b. Board of commissioners, directors, audit

committee and employees

Susunan anggota dewan komisaris, direksi dan komite audit Perusahaan pada tanggal 31 Desember 2018 dan 2017 adalah sebagai berikut:

The members of board of commissioners, directors and audit committee of the Company as of 31 December 2018 and 2017 were as follows:

FINANCIAL REPORTS




DAN ENTITAS ANAK CATATAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN

TAHUN BERAKHIR 31 DESEMBER 2018 DAN 2017 (LANJUTAN)




(CONTINUED) (Expressed in millions of Rupiah, unless otherwise stated)

1. UMUM (lanjutan) 1. GENERAL (continued)

b. Dewan komisaris, direksi, komite audit dan karyawan (lanjutan)

b. Board of commissioners, directors, audit committee and employees (continued)

31 Desember 2018 31 December 2018

Dewan komisaris: Board of commissioners:Presiden Komisaris Edwin Soeryadjaya President CommissionerKomisaris Joyce Soeryadjaya Kerr CommissionerKomisaris Indra Cahya Uno CommissionerKomisaris independen Sidharta Utama Independent CommissionerKomisaris independen Anangga W. Roosdiono S.H. Independent Commissioner Direksi: Directors:Presiden Direktur Michael W.P. Soeryadjaya President DirectorDirektur Andi Esfandiari DirectorDirektur Independen Lany Djuwita Independent Director Komite audit: Audit committee:Ketua Sidharta Utama ChairmanAnggota Alida Basir MemberAnggota Ludovicus Sensi W. Member


Dewan komisaris: Board of commissioners:Presiden Komisaris Edwin Soeryadjaya President CommissionerKomisaris Joyce Soeryadjaya Kerr CommissionerKomisaris Indra Cahya Uno CommissionerKomisaris independen Sidharta Utama Independent CommissionerKomisaris independen Anangga W. Roosdiono S.H. Independent Commissioner Direksi: Directors:Presiden Direktur Michael W.P. Soeryadjaya President DirectorDirektur Andi Esfandiari DirectorDirektur Independen Ngo Jerry Go Independent Director Komite audit: Audit committee:Ketua Sidharta Utama ChairmanAnggota Alida Basir MemberAnggota Ludovicus Sensi W. Member

Berdasarkan Rapat Umum Pemegang Saham Tahunan (RUPST) Perusahaan yang dilakukan pada tanggal 15 Juni 2016, para pemegang saham Perusahaan menyetujui untuk mengangkat kembali seluruh anggota Dewan Komisaris dan Direksi Perusahaan sampai dengan penutupan Rapat Umum Pemegang Saham Tahunan pada tahun 2019. Dalam Rapat Umum Pemegang Saham Tahunan danLuar Biasa (RUPSTLB) Perusahaan yang dilakukan pada tanggal 26 Juni 2018, para pemegang saham Perusahaan menerima pengunduran diri dari Ngo Jerry Go sebagai Direktur Independen serta mengangkat Lany Djuwita sebagai Direktur Independen yang baru. Pengunduran diri serta pengangkatan tersebut telah diterima dan disetujui oleh pemegang saham dalam rapat RUPSTLB tersebut.

Based on the Annual General Meeting of Shareholders (RUPST) of the Company which was held on 15 June 2016, the shareholders approved to reappoint all members of the Board of Commissioners and Directors of the Company until the closing of the Annual General Meeting of Shareholders in year 2019. In the Annual and Extraordinary General Meeting of Shareholder (RUPSTLB) of the Company which was held on 26 June 2018, the shareholders of the Company accepted the resignation of Ngo Jerry Go as the Independent Director and agreed to appoint Lany Djuwita as the new Independent Director. This resignation and the assignment was accepted and approved by the shareholders through the Company’s RUPSTLB.

Pada tanggal 31 Desember 2018 dan 2017, Perusahaan mempekerjakan 57 karyawan dan 52karyawan (termasuk direksi dan karyawan kontrakPerusahaan).

As of 31 December 2018 and 2017, the Company employed 57 employees and 52 employees, respectively (includes directors and contractual employees).

c. Penawaran umum perdana saham Perusahaan c. The Company’s initial public offering

Pada tanggal 18 Juni 2013, Perusahaan memperoleh pernyataan efektif dari Otoritas Jasa Keuangan (OJK) melalui Surat No.S-175/D.04/2013 untuk melakukan Penawaran Umum Perdana Saham sebanyak 271.297.000 saham biasa atas nama dengan nilai nominal Rp100 (Rupiah penuh) per saham dengan harga penawaran sebesar Rp5.500 (Rupiah penuh) per saham melalui pasar modal dan saham telah dicatatkan pada Bursa Efek Indonesia pada tanggal 26 Juni 2013.

On 18 June 2013, the Company received the effective statement from the Indonesia Financial Services Authority (OJK) through the Letter No.S-175/D.04/2013 to perform the Initial Public Offering of 271,297,000 common shares with par value of Rp100 (whole Rupiah) at the offering price of Rp5,500 (whole Rupiah) each share through capital market and the shares were listed on the Indonesia Stock Exchange on 26 June 2013.











d. Program opsi saham untuk karyawan manajemen dan pemberian saham

d. Management employee stock option and share grants program

Berdasarkan akta berita acara Rapat Umum Pemegang Saham Luar Biasa Perusahaan No. 111 tanggal 22 Februari 2013 jo. akta berita acara Rapat Umum Pemegang Saham Luar Biasa Perusahaan No. 59 tanggal 21 Januari 2014 jo. akta berita acara Rapat Umum Pemegang Saham Tahunan No. 52 tanggal 10 Juni 2015 jo. akta berita acara Rapat Umum Pemegang Saham Tahunan No. 76 tanggal 15 Juni 2016, yang seluruhnya dibuat di hadapan Humberg Lie, SH, SE, MKn, Notaris di Jakarta, para pemegang saham menyetujui Program opsi saham untuk karyawan manajemen (MESOP) yang meliputi anggota Komisaris kecuali Komisaris Independen, Direksi, karyawan perusahaan dan karyawan yang ditugaskan pada perusahaan asosiasi - manajemen senior. Opsi diberikan melalui tiga tahapan dan masing-masing opsi akan berakhir dalam jangka waktu 5 (lima) tahun.

Based on the Minutes of the Company’s Extraordinary General Meeting of Shareholders No. 111 dated 22 February 2013 jo. the deed of Minutes of the Company’s Extraordinary General Meeting of Shareholders No. 59 dated 21 January 2014 jo. the deed of Minutes of the Company’s Annual General Meeting of Shareholders No. 52 dated 10 June 2015 jo. the deed of Minutes of the Company’s Annual General Meeting of Shareholders No. 76 dated 15 June 2016, all of which are drawn before Humberg Lie, SH, SE, MKn, a Notary in Jakarta, the shareholders approved the Management Employee Stock Option Program (MESOP) covering the Commissioners except Independent Commisioners, Directors, employees and assigned employees in associate companies – senior management. The options were granted through three stages and each of the options will expire in 5 (five) years time.

Perusahaan memberikan 3 (tiga) opsi dengan rincian sebagai berikut:

The Company has granted 3 (three) options with details as follows:

Tanggal/Date Jumlah saham/Number of shares Harga pelaksanaan/Exercise price

7 Februari/February 2014 14.421.000 Rp4.777 23 Januari/January 2015 16.270.000 Rp4.953 18 Agustus/August 2015 10.966.000 Rp4.905

Alokasi opsi tersebut berdasarkan 50% time vested dan 50% performance vested.

The options are subject to 50% time vested and 50% performance vested.

Berdasarkan keputusan edaran di luar rapat Direksi Perusahaan tanggal 22 Februari 2016, Direksi telah memutuskan untuk membatalkan seluruh program opsi saham yang telah disetujui oleh Direksi sebelumnya. Semua karyawan yang berpartisipasi dalam program opsi saham sebelumnya secara otomatis berhak atas saham dengan rasio konversi dari program lama sebagai berikut:

In accordance with the circular resolution in lieu of a meeting of the Board of Directors of the Company on 22 February 2016, the Board of Directors has resolved to revoke the previous stock option program. All employees who participated in the previous stock option program are automatically entitled to shares with conversion ratio from the old program as follows:

Rasio konversi / Conversion ratio Asal program opsi saham / Source

of stock option program

Time vested

Performance vested

7 Februari / February 2014 1 Hak opsi = 1/(2,82) saham 1 Option right = 1/(2,82) shares

1 Hak opsi = 1/(10,99) saham 1 Option right = 1/(10,99) shares

23 Januari / January 2015 1 Hak opsi = 1/(3,67) saham 1 Option right = 1/(3,67) shares


18 Agustus / August 2015 1 Hak opsi = 1/(3,29) saham 1 Option right = 1/(3,29) shares


Penghapusan program opsi saham ini juga telah disetujui oleh pemegang saham Perusahaan sesuai dengan akta berita acara Rapat Umum Pemegang Saham Luar Biasa Perusahaan No. 77 tanggal 15 Juni 2016 yang dibuat di hadapan Humberg Lie, SH., SE., MKn, Notaris di Jakarta. Selain itu, pada rapat yang sama, para pemegang saham juga menyetujui untuk melaksanakan program Insentif Jangka Panjang kepada karyawan Perusahaan berbasis kinerja dan waktu kerja, serta menyetujui untuk memberikan kuasa dan wewenang kepada Direksi Perusahaan untuk merealisasikan pelaksanaan program tersebut.

The revocation of stock option program has been approved by the shareholders of the Company in accordance with the deed of Minutes of the Company’s Extraordinary General Meeting of Shareholders No. 77 dated 15 June 2016 by Humberg Lie, SH, SE, MKn, a Notary in Jakarta. In addition, in the same meeting, the shareholders also approved to implement the Long Term Incentive Program for the employees of the Company on the basis of time vested and performance vested, as well as to approve to grant power and authorities to the Board of Directors of the Company to realize the implementation of such program.

FINANCIAL REPORTS











d. Program opsi saham untuk karyawan manajemen dan pemberian saham (lanjutan)

d. Management employee stock option and share grants program (continued)

Berdasarkan beberapa keputusan edaran di luar rapat Direksi Perusahaan, Direksi telah memutuskan untuk mengalokasikan sebanyak-banyaknya jumlah lembar saham tertentu untuk pelaksanaan Program Insentif Jangka Panjang sebagai berikut:

In accordance with the circular resolution in lieu of a meeting of the Board of Directors of the Company, the Board of Directors of the Company approved to allocate a maximum number of shares for the implementation of the Long Term Incentive Program as follows:

Tanggal keputusan edaran/Circular resolution date

Jumlah lembaran saham/ Number of shares

Program Insentif Jangka Panajang/ Long Term Incentive Program

22 Juni/June 2016 3.500.000 lembar saham/number of shares 2016 - 2019 16 Juni/June 2017 5.450.000 lembar saham/number of shares 2017 – 2020 28 Juni/June 2018 7.665.000 lembar saham/number of shares 2018 - 2021

Pemberian saham sebagaimana diuraikan diatas dialokasikan berdasarkan 50% time vested dan 50% performance vested.

The share grants as described above were allocated subject to 50% time vested and 50% performance vested.

e. Entitas anak e. Subsidiaries

Pada tanggal 31 Desember 2018 dan 2017, Perusahaan mengkonsolidasikan entitas anak berikut ini:

As of 31 December 2018 and 2017, the Company consolidated the following subsidiaries:

Persentase kepemilikan/ Mulai beroperasi Kegiatan usaha/ Percentage of komersial/ Jumlah aset sebelum eliminasi/

Entitas anak/ Domisili/ Nature of Ownership Commencement Total assets before elimination

Subsidiaries Domicile activities 31 Desember / December 2018


of commercial operations

31 Desember / December 2018


% % Rp Rp

Kepemilikan langsung/Direct ownership

PT Saratoga Sentra Business (SSB) Jakarta Jasa investasi/ Investment services

99,99 99,99 2005 1.198.170 1.825.311

PT Nugraha Eka Kencana (NEK) Jakarta Jasa investasi/ Investment services

99,99 99,99 2003 414.263 224.852

PT Wahana Anugerah Sejahtera (WAS) Jakarta Jasa investasi/

Investment services

99,85 99,85 2005 4.813.839 8.588.184

PT Bumi Hijau Asri (BHA) Jakarta Jasa investasi/ Investment services

99,99 99,99 2007 200.470 193.774

PT Wana Bhakti Sukses Mineral (WBSM) Jakarta Jasa investasi/ Investment services

73,68 73,68 2007 168.497 211.815

Asia Legacy International Investment Ltd.

(Asia)

Cayman

Entitas terstruktur untuk keperluan pendanaan /Structured entity for Company’s financing

100

100

2015

103.439

4.388

Bravo Magnum International Investment Ltd. (Bravo)

Cayman


100

100

2015

103.437

4.391

Cedar Legacy International Holding Ltd. (Cedar)

Cayman


100

100

2015

109.403

4.730

Delta Investment Horizon International Ltd. (Delta)

Cayman


45

45

2015

563.862

973.085

Emerald Investment Horizon Ltd.

(Emerald)

Cayman


45

45

-

6.284

6.092

PT Trimitra Karya Jaya (TKJ) Jakarta Jasa investasi/ Investment services

86,49 86,49 - 2.027.485 1.259.867

PT Surya Nuansa Ceria (SNC) Jakarta Jasa investasi/ Investment services

99,99 99,99 - 21.385 27.136

PT Lintas Indonesia Sejahtera (LIS) Jakarta Jasa investasi/ Investment services

99,99 - - 8.005 -











e. Entitas anak (lanjutan) e. Subsidiaries (continued)

Persentase kepemilikan/ Mulai beroperasi Kegiatan usaha/ Percentage of komersial/ Jumlah aset sebelum eliminasi/

Entitas anak/ Domisili/ Nature of Ownership Commencement Total assets before elimination Subsidiaries Domicile activities 31 Desember /

December 2018 31 Desember/

December 2017 of commercial

operations 31 December /

December 2018 31 Desember/ December 2017

% % Rp Rp

Kepemilikan tidak langsung melalui SSB/ Indirect ownership through SSB

PT Interra Indo Resources (IIR)

Jakarta Jasa investasi/

Investment services

99,99 99,99 2004 7.425 372.141

Kepemilikan tidak langsung melalui NEK/ Indirect ownership through NEK

PT Sukses Indonesia (SI)


Investment services

99,67 99,67 2001 55.782 55.581

Kepemilikan tidak langsung melalui BHA/ Indirect ownerships through BHA

PT Sarana Asri (SA)


Investment services

60 60 2008 1.362 1.377

Kepemilikan tidak langsung melalui Asia, Bravo dan Cedar/ Indirect ownership through Asia, Bravo and Cedar

Delta Investment Horizon International Ltd.

(Delta)

Cayman

Entitas terstruktur untuk

keperluan pendanaan /Structured entity for Company’s financing

55

55

2015

563.862

973.085

Emerald Investment Horizon Ltd. (Emerald)

Cayman


55

55

-

6.284

6.092

2. DASAR PENYUSUNAN LAPORAN KEUANGAN

KONSOLIDASIAN 2. BASIS OF PREPARATION OF THE CONSOLIDATED

FINANCIAL STATEMENTS

a. Pernyataan kepatuhan

Laporan keuangan konsolidasian telah disusun dandisajikan sesuai dengan Standar Akuntansi Keuangan di Indonesia (SAK).

a. Statement of compliance

The consolidated financial statements are prepared and presented in accordance with Indonesian Financial Accounting Standards (SAK).

b. Dasar pengukuran

Laporan keuangan konsolidasian disusun atas dasar akrual dengan menggunakan konsep nilai historis, kecuali ketika standar akuntansi mengharuskan pengukuran nilai wajar.

b. Basis of measurement

The consolidated financial statements are prepared on the accrual basis using the historical cost concept, except where the accounting standards require fair value measurement.

c. Laporan arus kas

Laporan arus kas konsolidasian disusun dengan menggunakan metode langsung (direct method) dengan mengklasifikasikan arus kas berdasarkan aktivitas operasi, investasi, dan pendanaan.

c. Statement of cash flows

The consolidated statement of cash flows is prepared using the direct method by classifying the cash flows on the basis of operating, investing, and financing activities.

d. Mata uang fungsional dan penyajian

Laporan keuangan konsolidasian disajikan dalam Rupiah, dibulatkan ke dalam jutaan terdekat, yang merupakan mata uang fungsional Perusahaan.

d. Functional and presentation currency

The consolidated financial statements are presented in Rupiah, rounded to the nearest million which is the Company’s functional currency.

FINANCIAL REPORTS











KONSOLIDASIAN (lanjutan) 2. BASIS OF PREPARATION OF THE CONSOLIDATED

FINANCIAL STATEMENTS (continued) e. Penggunaan pertimbangan, estimasi dan asumsi

Penyusunan laporan keuangan konsolidasian mengharuskan manajemen untuk membuat pertimbangan, estimasi dan asumsi yang mempengaruhi penerapan kebijakan akuntansi serta jumlah aset, liabilitas, pendapatan dan beban yang dilaporkan. Hasil aktual dapat berbeda dari nilai-nilai estimasi tersebut.

e. Use of judgements, estimates and assumptions

The preparation of consolidated financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from those estimated amounts.

Estimasi dan asumsi yang mendasarinya ditinjau secara berkesinambungan. Perubahan terhadap estimasi diakui secara prospektif. Informasi mengenai pertimbangan kritis dalam penerapan kebijakan akuntansi yang memiliki dampak paling signifikan terhadap jumlah yang diakui di laporan keuangan konsolidasian termasuk penentuan investee yang harus dikonsolidasikan sesuai PSAK 65 (Catatan 2f). Informasi mengenai ketidakpastian asumsi dan estimasi yang dapat mengakibatkan penyesuaian material pada tahun berikutnya termasuk pengakuan aset pajak tangguhan: ketersediaan laba fiskal mendatang untuk memungkinkan Perusahaan mengakui aset pajak tangguhan atas kompensasi rugi fiskal (Catatan 9) dan pengukuran nilai wajar, baik untuk aset dan liabilitas keuangan dan non-keuangan.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively. Information about critical judgements in applying accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements includes the determination of investee to be consolidated in accordance to PSAK 65 (Note 2f). Information about the assumptions and estimation uncertainties that may result in a material adjustment within the following year includes recognition of deferred tax assets: availability of future taxable profit to enable the Company to recognize deferred tax assets for tax loss carryforwards (Note 9) and the measurement of fair values, for both financial and non-financial assets and liabilities.

Ketika mengukur nilai wajar aset atau liabilitas, Perusahaan menggunakan data pasar yang dapat diobservasi sejauh mungkin. Nilai wajar ditentukan dengan menggunakan input hirarki berikut ini yang digunakan dalam teknik penilaian atas aset dan liabilitas:

When measuring the fair value of an asset or a liability, the Company uses observable market data to the extent possible. Fair values are determined using the following hierarchy of inputs used in the valuation techniques for assets and liabilities:

x Level 1: kuotasi harga (tanpa disesuaikan)

dalam pasar aktif untuk aset atau liabilitas yang identik.

x Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

x Level 2: input selain kuotasi harga yang termasuk dalam level 1, yang dapat diobservasi, baik secara langsung (yaitu harga) atau secara tidak langsung (yaitu berasal dari harga lain yang dapat diobservasi).

x Level 2: inputs, other than quoted prices included in Level 1, that are observable, either directly (i.e. prices) or indirectly (i.e. derived from other observable prices).

x Level 3: input yang tidak berdasarkan data pasar yang dapat diobservasi (input yang tidak dapat diobservasi).

x Level 3: inputs that are not based on observable market data (unobservable inputs).

Jika input yang digunakan untuk mengukur nilai wajar aset atau liabilitas diambil dari berbagai sumber yang berbeda atas nilai wajar hirarki, maka pengukuran nilai wajar untuk seluruh kelas aset atau liabilitas dianggap telah dilakukan menggunakan level input terendah yang signifikan atas keseluruhan pengukuran (level 3 menjadi yang terendah).

If the inputs used to measure the fair value of an asset or a liability are drawn from a mixture of different level sources of the fair value hierarchy, then the fair value measurement for the entire class of the asset or liability is considered to have been done using the lowest level input that is significant to the entire measurement (Level 3 being the lowest).












FINANCIAL STATEMENTS (continued)

e. Penggunaan pertimbangan, estimasi dan asumsi(lanjutan)

e. Use of judgements, estimates and assumptions (continued)

Informasi lebih lanjut tentang input dan asumsi signifikan yang digunakan dalam mengukur nilai wajar dimasukkan dalam catatan berikut:

Further information about the significant inputs and assumptions made in measuring fair values is included in the following notes:

- Catatan 7 – investasi pada efek ekuitas

- Catatan 8 – instrumen keuangan derivatif

- Note 7 – investment in equity securities

- Note 8 – derivative financial instruments

- Catatan 11 – obligasi tukar dan equity swap - Note 11 – exchangeable bonds and equity swaps

- Catatan 20 – nilai wajar instrumen keuangan - Note 20 – fair value of financial instruments

f. Prinsip konsolidasi f. Principles of consolidation

Entitas anak adalah entitas yang dikendalikan oleh Grup baik secara langsung maupun tidak langsung. Grup mengendalikan suatu entitas ketika Grup terekpos dengan, atau memiliki hak atas, imbal hasil variabel dari keterlibatan Grup dengan entitas dan memiliki kemampuan untuk mempengaruhi imbal hasil tersebut melalui kekuasaan Grup di entitas.

Subsidiaries are entities controlled by the Groupboth directly or indirectly. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

Perusahaan memenuhi persyaratan sebagai entitas investasi kualifikasian sebagaimana diatur dalam PSAK 65 "Laporan Keuangan Konsolidasian", oleh karena itu investasi di entitas yang dikendalikan -serta investasi dalam entitas asosiasi dan ventura bersama diukur pada nilai wajar melalui laba rugi(FVTPL) sesuai PSAK 55 dengan pengecualian untuk entitas anak yang dianggap perpanjangan tangan dari aktivitas investasi Perusahaan (yaitu entitas anak yang bukan merupakan entitas investasi (sesuai dengan PSAK 65) yang hanya memberikan jasa manajemen investasi ke Perusahaan). Oleh karena itu, Perusahaan hanya mengkonsolidasikan entitas anak yang bukan merupakan entitas investasi (sesuai dengan PSAK 65) tetapi memberikan jasa manajemen investasi pada Perusahaan (lihat Catatan 1e untuk daftar entitas anak yang dikonsolidasikan).

The Company is a qualifying investment entity stipulated in PSAK 65 “Consolidated Financial Statements”, and accordingly investments in controlled entities – as well as investments in associates and joint ventures are measured at fair value through profit or loss (FVTPL) in accordance with PSAK 55 with the exception of subsidiaries that are considered an extension of the Company’s investing activities (i.e. a subsidiary that is non-investment entity (in accordance with PSAK 65) which only provides investment management services to the Company). As a result, the Company only consolidates subsidiaries that are non-investment entities (in accordance with PSAK 65) which provide investment management services to the Company (see Note 1e for the list of consolidated subsidiaries).

Kepentingan nonpengendali atas aset neto entitas anak diidentifikasi pada tanggal kombinasi bisnis yang selanjutnya disesuaikan dengan proporsi atas perubahan ekuitas entitas anak dan disajikan sebagai bagian dari ekuitas pada laporan posisi keuangan konsolidasian.

Non-controlling interests in the net assets of subsidiaries are identified at the date of business combination and afterwards are adjusted by proportion of changes in equity of subsidiaries and presented as a part of equity in the consolidated statement of financial position.

Bila pengendalian berakhir dalam periode berjalan, hasil usaha entitas tersebut dimasukkan ke dalam laporan keuangan konsolidasian untuk bagian tahun dimana pengendalian masih berlangsung.

Where control ceases during a financial period, its results are included in the consolidated financial statements for the part of the year during which control existed.

Kebijakan akuntansi yang digunakan dalam penyusunan laporan keuangan konsolidasian telah diterapkan secara konsisten oleh Grup dalam semua hal yang material.

The accounting policies adopted in preparing the consolidated financial statements have been consistently applied by the Group in all material respects.

Seluruh transaksi dan saldo yang material antara perusahaan-perusahaan yang dikonsolidasikan telah dieliminasi, termasuk keuntungan dan kerugian hasil dari transaksi antar perusahaan yang belum direalisasi.

All material transactions and balances betweenconsolidated companies have been eliminated, including unrealized gains and losses arising from intercompany transactions.

FINANCIAL REPORTS












FINANCIAL STATEMENTS (continued)

f. Prinsip konsolidasi (lanjutan) f. Principles of consolidation (continued)

Perubahan dalam bagian kepemilikan Perusahaan pada entitas anak yang dikonsolidasikan yang tidak mengakibatkan hilangnya pengendalian dicatat sebagai transaksi ekuitas. Bagian Perusahaan atas transaksi ekuitas entitas anak tersebut disajikan sebagai "komponen ekuitas lainnya" dalam bagian ekuitas pada laporan posisi keuangan konsolidasian. Ketika pengendalian atas entitas anak yang dikonsolidasikan hilang, bagian kepemilikan yang tersisa di entitas tersebut diukur kembali pada nilai wajarnya dan keuntungan atau kerugian yang dihasilkan diakui dalam laba rugi.

Changes in the Company’s ownership interest in a consolidated subsidiary that do not result in the loss of control are accounted for as equity transactions. The Company’s share of equity transactions of the subsidiaries is presented as "other equity components" under the equity section of the consolidated statement of financial position. When control over a previous consolidated subsidiary is lost, any remaining interest in the entity is remeasured at fair value and the resulting gain or loss is recognised in profit or loss.

g. Perubahan kebijakan akuntansi g. Changes in accounting policies

Grup melakukan penerapan dini Pernyataan Standar Akuntansi Keuangan (“PSAK”)-71 “Instrumen Keuangan”, efektif 1 Januari 2018, menggantikan kebijakan sebelumnya yang berdasarkan PSAK-55 “Instrumen Keuangan: Pengakuan dan Pengukuran”. Sejalan dengan ketentuan transisi PSAK-71, Grup menerapkan PSAK-71 secara retrospektif. Sehingga, informasi komparatif tanggal 31 Desember 2017 serta untuk tahun yang berakhir pada tanggal 31 Desember 2017, dan tanggal 1 Januari 2017 telah disajikan kembali.

The Group early adopted Statement of Financial Accounting Standards (“PSAK”)–71 “Financial Instruments”, effective 1 January 2018, replacing the previous policy which was based on PSAK-55;“Financial Instruments: Recognition and Measurement”. In line with the transition provisions of PSAK-71, the Group applied the PSAK-71 retrospectively. Accordingly, the comparative financial information as of 31 December 2017, for the year ended 31 December 2017, and as of 1 January 2017 has been restated.

Implikasi dari penerapan awal PSAK-71 terhadap laporan keuangan Grup terutama terkait klasifikasi aset keuangan dan liabilitas keuangan. PSAK-71 memiliki tiga kategori klasifikasi utama aset keuangan: diukur pada biaya perolehan diamortisasi, pada nilai wajar melalui penghasilan komprehensif lain (“FVOCI”) dan pada nilai wajar melalui laba rugi (“FVTPL”). Secara umum, klasifikasi aset keuangan menurut PSAK-71berdasarkan model bisnis pengelolaan aset keuangan tersebut dan karakteristik arus kas kontraktualnya. PSAK-71 menghilangkan beberapa kategori aset keuangan yang sebelumnya berdasarkan PSAK-55, yang dimiliki hingga jatuh tempo, pinjaman yang diberikan dan piutang dan tersedia untuk dijual. Investasi dalam efek ekuitas tertentu yang sebelumnya dikategorikan sebagai tersedia untuk dijual, sekarang diakui sebagai FVTPL.

The effect of the initial application of PSAK-71 on the Group’s financial statements mainly relates to the classification of financial assets and financial liabilities. PSAK-71 contains three principal classification categories for financial assets: measured at amortized cost, fair value through other comprehensive income (“FVOCI”) and fair value through profit or loss (“FVTPL”). The classification of financial assets under PSAK-71 is generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics. PSAK-71 eliminates the previous PSAK-55 categories of held to maturity, loans and receivables and available for sale. Certain investments in equity instruments which were previously categorized as available for sale are now accounted as FVTPL.

Dalam menerapkan PSAK-71, Grup juga merubah kebijakan akuntansinya terkait penurunan nilai aset keuangan dan liabilitas keuangan yang ditetapkan diukur pada nilai wajar melalui laba rugi. Akan tetapi, perubahan tersebut tidak memiliki implikasi yang signifikan terhadap Grup saat penerapan awal PSAK-71.

In applying PSAK-71, the Group also changed its accounting policies regarding impairment of financial assets and financial liabilities designated as fair value through profit or loss. However, these changes did not have a significant impact for the Group at the initial application of PSAK-71.

Penyesuaian atas informasi keuangan komparatif karena penerapan PSAK 71 disajikan di Catatan 24.

The restatement adjustments made to the comparative information for the adoption of PSAK-71 are disclosed in Note 24.










3. IKHTISAR KEBIJAKAN AKUNTANSI YANG SIGNIFIKAN 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Kebijakan-kebijakan akuntansi berikut ini telah diterapkan secara konsisten untuk semua periode yang disajikan dalam laporan keuangan konsolidasian.

The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements.

a. Instrumen keuangan a. Financial instruments

Suatu instrumen keuangan diakui pada saat Grupmenjadi pihak dari ketentuan kontrak suatu instrumen keuangan. Aset keuangan dihentikan pengakuannya pada saat hak kontraktual Grup atas arus kas yang berasal dari aset keuangan tersebut kadaluwarsa, yaitu ketika aset dialihkan kepada pihak lain tanpa mempertahankan pengendalian atau pada saat seluruh risiko dan manfaat telah ditransfer secara substansial. Liabilitas keuangan dihentikan pengakuannya jika liabilitas Grupkadaluwarsa, atau dilepaskan atau dibatalkan.

A financial instrument is recognized when the Groupbecome a party to the contractual provisions of the instrument. Financial assets are derecognized when the Group’ contractual rights to the cash flows from the financial assets expire, i.e. when the asset is transferred to another party without retaining control or when substantially all risks and rewards are transferred. Financial liabilities are derecognized if the Group’ obligation expire, or are discharged or cancelled.

(1) Aset keuangan (1) Financial assets

Saat pengakuan awal, suatu aset keuangan diklasifikasikan sebagai diukur pada: biaya perolehan diamortisasi; nilai wajar melalui penghasilan komprehensif lain (“FVOCI”) –investasi dalam efek utang; FVOCI – investasi dalam efek ekuitas; atau nilai wajar melalui laba rugi (“FVTPL”). Aset keuangan selanjutnya tidak direklasifikasi kecuali Grup mengubah model bisnisnya dalam mengelola aset keuangan tersebut.

On initial recognition, a financial asset is classified as measured at: amortized cost; fair value through other comprehensive income (“FVOCI”) – debt investment; FVOCI –equity investment; or fair value through profit or loss (“FVTPL”). Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing the financial asset.

Suatu aset keuangan, yang tidak ditetapkan pada FVTPL, adalah diukur pada biaya perolehan diamortisasi apabila dikelola dalam model bisnis yang bertujuan untuk memiliki aset keuangan tersebut dalam rangka mendapatkan arus kas kontraktual dan persyaratan kontraktual dari aset keuangan tersebut menghasilkan arus kas pada tanggal tertentu yang semata dari pembayaran pokok dan bunga dari jumlah pokok terutang.

A financial asset, which is not designated as at FVTPL, is measured at amortized cost if it is held within a business model whose objective is to hold assets to collect contractual cash flows and its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Suatu investasi dalam efek utang, yang tidak ditetapkan pada FVTPL, adalah diukur pada biaya perolehan diamortisasi apabila dikelola dalam model bisnis yang bertujuan untuk memiliki aset keuangan tersebut dalam rangka mendapatkan arus kas kontraktual dan persyaratan kontraktual dari aset keuangan tersebut menghasilkan arus kas pada tanggal tertentu yang semata dari pembayaran pokok dan bunga dari jumlah pokok terutang.

A debt investment, which is not designated as at FVTPL, is measured at FVOCI if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

FINANCIAL REPORTS










a. Instrumen keuangan (lanjutan) a. Financial instruments (continued)

(1) Aset keuangan (lanjutan) (1) Financial assets (continued)

Saat pengakuan awal investasi dalam efek ekuitas, yang bukan dimiliki untuk diperdagangkan, Grup dapat membuat pilihan yang takterbatalkan untuk menyajikan perubahan selanjutnya pada nilai wajar investasi dalam efek ekuitas tersebut dalam penghasilan komprehensif lain. Pemilihan ini dilakukan per setiap investasi dalam efek ekuitas.

On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present subsequent changes in the investment’s fair value in other comprehensive income. This election is made on an investment-by-investment basis.

Seluruh aset keuangan, termasuk aset keuangan derivatif, yang tidak diklasifikasikan sebagai diukur pada biaya perolehan diamortisasi atau FVOCI sesuai penjabaran di atas adalah diukur pada FVTPL. Pada pengakuan awal, Grup dapat menetapkan pilihan takterbatalkan untuk mengukur suatu aset keuangan, yang memenuhi ketentuan untuk diukur pada biaya perolehan diamortisasi atau pada FVOCI, pada FVTPL apabila penetapan tersebut mengeliminasi atau secara signifikan mengurangi inkonsistensi pengukuran yang timbul tanpa penetapan tersebut.

All financial assets, including derivative financial assets, not classified as measured at amortized cost or FVOCI as described above are measured at FVTPL. On initial recognition, the Group may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortized cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

Aset keuangan Grup yang diukur pada FVTPL adalah investasi pada efek ekuitas, uang muka investasi pada efek ekuitas, equity share swap dan aset keuangan derivatif. Aset keuangan tersebut diukur pada nilai wajar. Keuntungan dan kerugian bersih, termasuk penghasilan bunga atau dividen, diakui di laba rugi.

The Group’s financial assets measured at FVTPL are investments in equity securities, advance for investments in equity securities, equity share swap and derivative financial assets. These financial assets are measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss.

Aset keuangan Grup yang diukur pada biaya perolehan diamortisasi adalah kas dan setara kas, kas yang dibatasi penggunaannya dan piutang. Aset keuangan tersebut awalnya diakui pada nilai wajar ditambah biaya transaksi yang dapat diatribusikan secara langsung dan selanjutnya diukur pada biaya perolehan diamortisasi dengan menggunakan metode suku bunga efektif. Biaya perolehan diamortisasi dikurangi dengan penurunan nilai. Penghasilan bunga, keuntungan dan kerugian nilai tukar, dan penurunan nilai diakui di laba rugi. Keuntungan atau kerugian dari penghentian pengakuan juga diakui di laba rugi.

The Group’s financial assets measured at amortized cost are cash and cash equivalents, restricted cash and receivables. These financial assets are initially recognized at fair value plus directly attributable transaction costs and subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss.

Grup tidak memiliki aset keuangan yang diukur pada FVOCI.

The Group does not have any financial assetsmeasured at FVOCI.

3. IKHTISAR KEBIJAKAN AKUNTANSI YANG SIGNIFIKAN(lanjutan)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)










a. Instrumen keuangan (lanjutan) a. Financial instruments (continued)

(2) Liabilitas keuangan (2) Financial liabilities

Liabilitas keuangan diklasifikasikan sebagai diukur pada biaya perolehan diamortisasi atau pada FVTPL. Suatu liabilitas keuangan diklasifikasikan sebagai diukur pada FVTPL apabila dimiliki untuk diperdagangkan, merupakan suatu instrument derivatif atau ditetapkan sebagai diukur pada FVTPL pada pengakuan awalnya.

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as measured at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition.

Liabilitas keuangan Grup yang diukur pada FVTPL adalah obligasi tukar. Liabilitas keuangan tersebut ditetapkan sebagai diukur pada FVTPL. Perubahan nilai wajarnya yang berasal dari perubahan risiko kredit liabilitas tersebut, apabila ada, diakui di penghasilan komprehensif lain. Keuntungan dan kerugian lainnya, termasuk biaya bunga, diakui di laba rugi.

The Group’s financial liabilities measured at FVTPL are the exchangeable bonds. The liabilities are designated as measured at FVTPL. Any change of fair value derived from changes of the credit risk of the liabilities are recognized in other comprehensive income. Other net gains and losses, including any interest expense, are recognized in profit or loss.

Liabilitas keuangan Grup lainnya adalah utang lainnya ke pihak ketiga, beban akrual, pinjaman, wesel bayar jangka menengah dan uang muka penjualan investasi. Liabilitas keuangan tersebut awalnya diakui pada nilai wajar ditambah biaya transaksi dan selanjutnya diukur pada biaya perolehan diamortisasi dengan menggunakan metode suku bunga efektif. Biaya bunga dan keuntungan dan kerugian nilai tukar diakui di laba rugi. Keuntungan atau kerugian dari penghentian pengakuan juga diakui di laba rugi.

The Group’s other financial liabilities are other payables to third parties, accrued expenses, borrowings, medium term notes, and advance from sale of investment. These financial liabilities are initially recognized at fair value plus transaction costs and subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on de-recognition is also recognized in profit or loss.

(3) Penentuan nilai wajar (3) Determination of fair value

Nilai wajar adalah harga yang akan diterima untuk menjual suatu aset atau harga yang akan dibayar untuk mengalihkan suatu liabilitas dalam transaksi teratur antara pelaku pasar pada tanggal pengukuran.

Fair value is the price that would be received to sell an asset or the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date.

(4) Penghentian pengakuan (4) Derecognition

Grup menghentikan pengakuan aset keuangan ketika, dan hanya ketika, hak kontraktual atas arus kas yang berasal dari aset keuangan tersebut kadaluarsa atau Grup mentransfer seluruh hak kontraktual tersebut di mana seluruh risiko dan manfaat atas kepemilikan aset keuangan juga dialihkan. Setiap hak atau kewajiban atas aset keuangan yang dialihkan yang timbul atau yang masih dimiliki oleh Grupdiakui sebagai aset atau liabilitas secara terpisah.

The Group derecognizes the financial assets when, and only when, the contractual rights to receive the cash flows from these financial assets have ceased to exist or The Group transfers such contractual rights, in which substantially all the risks and rewards of ownership of the financial assets are also transferred. Any rights or obligations on the transferred financial assets that arise or are still owned by The Group are recognized as assets or liabilities separately.

Grup menghentikan pengakuan liabilitas keuangan ketika, dan hanya ketika, kewajiban yang ditetapkan dalam kontrak kadaluarsa, dilepaskan atau dibatalkan.

The Group derecognizes financial liabilities when, and only when, the obligation specified in the contract expires, or is discharged or cancelled.



FINANCIAL REPORTS





(LANJUTAN) (Dinyatakan dalam jutaan Rupiah, kecuali dinyatakan lain)




Instrumen keuangan (lanjutan) Financial instruments (continued)

(5) Saling hapus instrumen keuangan (5) Offsetting financial instruments

Aset keuangan dan liabilitas keuangan dapat saling hapus dan nilai bersihnya disajikan dalam laporan posisi keuangan ketika, dan hanya ketika, Grup memiliki hak atas dasar hukum untuk melakukan saling hapus atas jumlah yang telah diakui tersebut dan berniat untuk menyelesaikan secara neto, atau merealisasikan aset dan menyelesaikan liabilitas secara simultan.

Financial assets and liabilities are set-off and the net amount is presented in the statements of financial position when, and only when, The Group has the legal right to set off the amounts and intends either to settle on a net basis or realize the asset and settle the liabilities simultaneously.

Hak saling hapus harus tidak kontinjen atas peristiwa di masa depan dan harus dapat dipaksakan secara hukum terhadap seluruh keadaan sebagai berikut: a. situasi bisnis yang normal; b. peristiwa kegagalan; dan c. peristiwa kepailitan atau kebangkrutan

dari entitas dan seluruh pihak lawan.

The right of set-off must not be contingent on a future event and must be legally enforceable in all of the following circumstances: a. the normal course of business; b. the event of default; and c. the event of insolvency or bankruptcy of

the Group and all of the counterparties.

(6) Penurunan nilai (6) Impairment

Grup mengakui cadangan untuk kerugian kredit ekspektasian (“ECL”) atas aset keuangan diukur pada biaya perolehan diamortisasi. ECL merupakan suatu perkiraan probabilitas tertimbang atas terjadinya kerugian kredit. Kerugian kredit diukur sebagai nilai kini atas seluruh kekurangan penerimaan kas, yaitu selisih antara arus kas yang terutang ke Grup sesuai kontrak dan arus kas yang diharapakan akan diterima Grup. ECL didiskontokan dengan suku bunga efektif dari aset keuangannya.

The Group recognizes loss allowances for expected credit loss (“ECL”) on financial assets measured at amortized cost. ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls, i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Group expects to receive. ECLs are discounted at the effective interest rate of the financial asset.

Pada setiap tanggal pelaporan, Grup menelaah apakah aset keuangan diukur pada biaya perolehan diamortisasi mengalami kredit macet. Suatu aset keuangan mengalami “kredit macet” apabila terdapat satu atau lebih peristiwa, yang memiliki implikasi menurunkan atas perkiraan arus kas masa depan dari aset keuangan, telah terjadi.

At each reporting date, the Group assesses whether financial assets carried at amortized cost are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.

Bukti bahwa suatu aset keuangan mengalami kredit macet, termasuk data yang dapat diobservasi berikut:

Evidence that a financial asset is credit-impaired, includes the following observable data:

x kesulitan keuangan signifikan dari debitur;

x ada probabilitas bahwa peminjam akan bangkrut atau mengalami reorganisasi keuangan; atau

x suatu pelanggaran dari kontrak seperti gagal bayar, atau sudah menunggak lebih dari 90 hari.

x significant financial difficulty of the borrower or issuer;

x it is probable that the borrower will enter bankruptcy or other financial reorganisation; or

x a breach of contract such as a default or being more than 90 days past due.












Transaksi dengan pihak-pihak berelasi Related party transactions

Grup menerapkan PSAK 7, Pengungkapan Pihak-pihak Berelasi. PSAK ini mensyaratkan pengungkapan hubungan, transaksi dan saldo pihak-pihak berelasi, termasuk komitmen, dalam laporan keuangan konsolidasian.

The Group applies PSAK 7, Related Party Disclosures. The PSAK requires the disclosures of related party relationships, transactions and outstanding balances, including commitments, in the consolidated financial statements.

Kas dan setara kas c. Cash and cash equivalents

Kas dan setara kas mencakup kas, kas pada bank, deposito berjangka dan investasi jangka pendek yang akan jatuh tempo dalam waktu tiga bulan atau kurang terhitung sejak ditempatkan, dan tidak digunakan sebagai jaminan atau tidak dibatasi penggunaannya.

Cash and cash equivalents are cash on hand, cash in banks, time deposits and short-term investmentswith a maturity period of three months or less at the time of placement and which are not used as collateral or are not restricted.

d. Investasi pada entitas asosiasi Investments in associates

Entitas asosiasi adalah suatu entitas dimana Grupmemiliki pengaruh signifikan tetapi bukan pengendalian atau pengendalian bersama, atas kebijakan finansial dan operasional entitas tersebut. Pengaruh signifikan dianggap ada apabila Grup memiliki paling sedikit 20% tetapi tidak lebih dari 50% hak suara entitas tersebut.

Associates are entities in which the Group hassignificant influence but not control or joint control over the entities’ financial and operating policies.Significant influence is presumed to exist when the Group holds at least 20% but not more than 50% of the voting power of the entities.

Seperti yang dijelaskan di Catatan 2f, Perusahaan memenuhi kriteria sebagai entitas investasi yang disyaratkan oleh PSAK 65 “Laporan Keuangan Konsolidasian” oleh karena itu investasi pada entitas asosiasi diukur pada nilai wajar melalui laba rugi. Dividen atas investasi ini, jika ada, diakui pada laba rugi pada saat hak Grup untuk memperoleh pembayaran dividen ditetapkan.

As discussed in Note 2f, the Company met the criteria as an investment entity as required by PSAK 65 “Consolidated Financial Statements”, and accordingly investments in associates are measured at fair value through profit or loss. Dividends on these investments, if any, are recognized in profit or loss when the Group’s right to receive the dividends is established.

e. Saham treasuri Treasury stock

Saham treasuri diukur sebesar imbalan yang dibayarkan, termasuk biaya transaksi signifikan yang dapat diatribusikan secara langsung (dikurangi pajak), dan dikurangkan dari ekuitas yang dapat diatribusikan kepada pemilik Perusahaan.

Treasury stock is measured at consideration paid, including any significant directly attributable transaction costs (net of taxes), and is deducted from equity attributable to the owners of the Company.

f. Transaksi dan saldo dalam mata uang asing f. Transactions and balances in foreign currencies

Transaksi dalam mata uang asing dijabarkan ke masing-masing mata uang fungsional Grupberdasarkan kurs yang berlaku pada saat transaksi dilakukan. Pada tanggal pelaporan, aset dan liabilitas moneter dalam mata uang asing dijabarkan ke mata uang fungsional berdasarkan kurs yang berlaku pada tanggal tersebut. Laba atau rugi selisih kurs yang timbul dikreditkan atau dibebankan pada laporan laba rugi dan penghasilan komprehensif lain tahun berjalan.

Transactions in foreign currencies are translated to the respective functional currencies of the Group at the exchange rates prevailing at the time the transactions are made. At reporting date, monetary assets and liabilities denominated in foreign currencies are retranslated to the functional currency at the exchange rate at that date. The resulting gains or losses are credited or charged to the statement of profit or loss and other comprehensive income for the year.



FINANCIAL REPORTS










3. .IKHTISAR KEBIJAKAN AKUNTANSI YANG SIGNIFIKAN

.(lanjutan) 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(continued)

f. Transaksi dan saldo dalam mata uang asing (lanjutan)

f. Transactions and balances in foreign currencies (continued)

Untuk tujuan konsolidasi, laporan posisi keuangan entitas anak yang menggunakan mata uang selain Rupiah dijabarkan ke Rupiah berdasarkan kurs yang berlaku pada tanggal pelaporan. Penghasilan dan beban dijabarkan ke Rupiah dengan kurs rata-rata yang berlaku selama tahun berjalan. Selisih kurs yang dihasilkan diakui pada pendapatan komprehensif lain dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian dan diakumulasikan dalam ekuitas di dalam pos selisih penjabaran laporan keuangan dalam mata uang asing.

For the purpose of consolidation, the statement of financial position of a subsidiary reporting in a currency other than the Rupiah is translated to Rupiah at the exchange rates prevailing at the reporting date. The income and expenses aretranslated to Rupiah at the average exchange rates prevailing during the year. The resulting exchange differences are recognized in other comprehensive income in the consolidated statement of profit or loss and other comprehensive income, and are accumulated in equity under the difference in translation of financial statements in foreign currency.

Aset dan liabilitas nonkeuangan yang diukur pada nilai wajar dalam mata uang asing dijabarkan kembali ke mata uang fungsional dengan menggunakan kurs yang berlaku pada tanggal nilai wajar ditentukan. Aset dan liabilitas nonkeuangan yang diukur atas dasar nilai historis dalam mata uang asing dijabarkan menggunakan kurs yang berlaku pada tanggal transaksi.

Non-monetary assets and liabilities that are measured at fair value in a foreign currency are retranslated to the functional currency at the exchange rate at the date that the fair value was determined. Non-monetary items that are measured based on historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.

Selisih mata uang asing dalam penjabaran ulang pada umumnya diakui pada laba rugi. Akan tetapi, selisih mata uang asing dari penjabaran investasi ekuitas yang tersedia untuk dijual diakui dalam penghasilan komprehensif lain, kecuali pada penurunan nilai dimana selisih mata uang asing yang telah diakui dalam penghasilan komprehensif lain akan diakui ke laba rugi.

Foreign currency differences arising on retranslation are generally recognized in profit or loss. However, foreign currency differences arising from the retranslation of available-for-sale equity investments are recognized in other comprehensive income, except on impairment in which case foreign currency differences that have been recognized in other comprehensive income are recognized to profit or loss.

Ketika investasi atas entitas yang memiliki mata uang fungsional selain Rupiah dilepas, pengaruh signifikan atau pengendalian bersama hilang, jumlah akumulasi cadangan penjabaran terkait entitas tersebut direklasifikasi ke laba rugi sebagai bagian dari keuntungan atau kerugian pelepasan. Ketika Grup melepas sebagian kepemilikan atas entitas anak yang memiliki entitas semacam ini namun tetap mempertahankan pengendalian, proporsi akumulasi cadangan penjabaran terkait akan diatribusikan kembali ke kepentingan nonpengendali.

When an investment in an entity with a functional currency other than the Rupiah is disposed or significant influence or joint control is lost, the cumulative amount in the translation reserve related to that entity is reclassified to profit or loss as part of the gain or loss on disposal. When the Group disposes of only part of its interest in a subsidiary that includes such entity while retaining control, the relevant proportion of the cumulative amount of translation reserve is reattributed to non-controlling interests.

Kurs yang digunakan untuk menjabarkan mata uang asing ke dalam Rupiah pada tanggal pelaporan adalah sebagai berikut :

The exchange rates used against the Rupiah at the reporting dates are as follows:



Rupiah penuh/Whole Rupiah 1 Dolar Amerika Serikat (Dolar

AS/USD) 14.481

13.548 United States Dollar (USD) 11 Dolar Singapura (Dolar SG/SGD) 10.603 10.134 Singapore Dollar (SGD) 11 Dolar Australia (Dolar AUS/AUD) 10.211 10.557 Australian Dollar (AUD) 1












(continued)

g. Pajak penghasilan g. Income tax

Grup memperhitungkan konsekuensi pajak kini dan mendatang dari pemulihan (penyelesaian) jumlah tercatat aset (liabilitas) masa depan yang diakui dalam laporan posisi keuangan konsolidasian, dan dari transaksi serta kejadian lain dari periode kini yang diakui dalam laporan keuangan konsolidasian.

The Group accounts for the current and future tax consequences of the future recovery (settlement) of the carrying amount of assets (liabilities) that are recognized in the consolidated statement of financial position, and transactions and other events of the current period that are recognized in the consolidated financial statements.

Grup mencatat tambahan pajak penghasilan yang berasal dari periode lalu yang ditetapkan dengan Surat Ketetapan Pajak (SKP), jika ada, sebagai bagian dari “Beban Pajak Penghasilan” dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian.

The Group presents additional income tax of previous periods through a tax assessment letter (SKP), if any, assessed as part of “Income Tax Expense” in the consolidated statement of profit or loss and other comprehensive income.

Beban pajak penghasilan terdiri dari beban pajak kini dan pajak tangguhan penghasilan badan. Pajak kini dan pajak tangguhan diakui dalam laba rugi, kecuali jika pajak tersebut terkait dengan transaksi atau kejadian yang diakui secara langsung dalam ekuitas atau dalam penghasilan komprehensif lain.

Income tax expense comprises current and deferred corporate income tax. Current tax and deferred tax are recognized in profit or loss, except to the extent that they relate to items recognized directly in equity or in other comprehensive income.

Pajak kini adalah pajak terutang atau piutang pajak yang diharapkan atas laba kena pajak (rugi pajak) selama tahun berjalan, dengan menggunakan tarip pajak yang secara substantif berlaku pada tanggal pelaporan, dan termasuk penyesuaian atas provisi beban pajak tahun-tahun sebelumnya baik untuk direkonsiliasikan dengan pajak penghasilan yang dilaporkan pada pelaporan pajak tahunan, atau untuk memperhitungkan selisih yang timbul dari pemeriksaan pajak.

Current tax is the expected tax payable or refundable on taxable income or loss for the year, using tax rates substantively enacted as of the reporting date, and includes true-up adjustments made to the previous years’ tax provisions either to reconcile them with the income tax reported in annual tax returns, or to account for differences arising from tax assessments.

Grup menerapkan metode aset dan liabilitas dalam menghitung beban pajaknya. Dengan metode ini, aset dan liabilitas pajak tangguhan diakui pada setiap tanggal pelaporan sebesar perbedaan temporer aset dan liabilitas untuk tujuan pelaporan keuangan dan tujuan perpajakan. Metode ini juga mengharuskan pengakuan manfaat pajak di masa yang akan datang, seperti kompensasi rugi fiskal, jika besar kemungkinan manfaat pajak tersebut dapat direalisasi.

The Group applies the asset and liability method in determining its income tax expense. Under this method, deferred tax assets and liabilities are recognized at each reporting date for temporary differences between the assets and liabilities for financial reporting purpose and for taxation purposes. This method also requires the recognition of future tax benefits, such as tax loss carryforwards, to the extent that realization of such benefits is probable.

Pajak tangguhan diukur dengan menggunakan tarif pajak yang diharapkan untuk diterapkan atas perbedaan temporer pada saat pembalikan, berdasarkan peraturan yang berlaku atau secara substantif telah berlaku pada tanggal pelaporan.

Deferred tax is measured at the tax rates that are expected to be applied to the temporary difference, when they reverse, based on the laws that have been enacted or substantially enacted at the reporting date.

Aset dan liabilitas pajak tangguhan disajikan saling hapus di laporan posisi keuangan konsolidasian, kecuali aset dan liabilitas pajak tangguhan untuk entitas hukum yang berbeda, hal ini berlaku juga untuk penyajian aset dan liabilitas pajak kini.

Deferred tax assets and liabilities are offset in the consolidated statement of financial position, except if these are for different legal entities, in the same manner the current tax assets and liabilities are presented.

FINANCIAL REPORTS












(continued)

g. Pajak penghasilan (lanjutan) g. Income tax (continued)

Dalam menentukan nilai pajak kini dan pajak tangguhan, Grup memperhitungkan dampak dari posisi pajak yang tidak pasti dan tambahan pajak dan penalti.

In determining the amount of current and deferred tax, the Group takes into account the impact of uncertain tax positions and any additional taxes and penalties.

Pajak final atas beberapa jenis transaksi yang dikenakan atas nilai brutonya (yaitu atas jumlah uang yang diterima) tidak dianggap sebagai pajak penghasilan.

Final tax on certain transactions is calculated based on the gross amount (i.e., amounts of cash received) is not considered as income tax.

h. Laba bersih per saham h. Earnings per share

Laba (rugi) bersih per saham dasar dihitung dengan membagi laba (rugi) tahun berjalan yang dapat diatribusikan kepada pemilik Perusahaan dengan jumlah rata-rata tertimbang saham beredar/ditempatkan selama tahun yang bersangkutan.

Basic earnings per share are computed by dividing profit (loss) for the year attributable to the owners of the Company by the weighted average of total outstanding/issued shares during the year.

Laba (rugi) per saham dilusian dihitung dengan membagi laba (rugi) tahun berjalan yang dapat diatribusikan kepada pemilik Perusahaan dengan total rata-rata tertimbang saham beredar/ditempatkan setelah mempertimbangkan penyesuaian atas dampak konversi dari semua instrumen berpotensi saham biasa bersifat dilutif yang mungkin diterbitkan Perusahaan.

Diluted earnings per share are computed by dividing profit (loss) for the year attributable to owners of the Company to the weighted average of total outstanding/issued share after considering adjustments for conversion of all dilutive potential ordinary shares that may be issued by the Company.

i. Informasi segmen i. Segment reporting

Grup mengidentifikasikan segmen operasi berdasarkan pelaporan internal yang dikaji secara berkala oleh pengambil keputusan operasional utama dalam rangka mengalokasikan sumber daya dan menilai kinerja segmen operasi tersebut.

The Group identifies its operating segments on the basis of internal reports that are regularly reviewed by the chief operating decision maker in order to allocate resources to the segment and assess its performance.

Segmen operasi dilaporkan dengan cara yang konsisten dengan pelaporan internal yang diberikan kepada Direksi sebagai pengambil keputusan operasional Grup.

Operating segments are reported in a manner consistent with the internal reporting provided to Board of Directors as the Group’s chief operating decision makes.

j. Pembayaran berbasis saham j. Share based-payments

Perusahaan memberikan opsi saham dan saham kepada manajemen karyawan yang memenuhi syarat melalui Program Opsi Saham dan Program Pemberian Saham untuk Karyawan Manajemen. Penyelesaian program ini dilakukan sebagian melalui kas (pembayaran berbasis saham yang diselesaikan dengan kas) dan sebagian melalui saham (pembayaran berbasis saham yang diselesaikan dengan instrumen ekuitas).

The Company provides stock options and share grants to the eligible employees through the Management Employee Stock Option and Share Grant Plan. The settlements of the plan are made partially through cash (cash settled share-based payment arrangement) and through shares (equity settled share-based payment arrangement).

Nilai wajar saat tanggal pemberian kompensasi berbasis saham ke karyawan diakui sebagai beban karyawan, beserta perubahan terkaitnya di ekuitas, selama periode sampai dengan karyawan berhak tanpa syarat atas penghargaan tersebut.

The grant-date fair value of share-based payment compensation granted to employees is recognized as an employee expense, with a corresponding increase in equity, over the period that the employees become unconditionally entitled to the awards.











(continued)

j. Pembayaran berbasis saham (lanjutan) j. Share based-payments (continued)

Nilai yang diakui sebagai beban disesuaikan untuk

menggambarkan nilai penghargaan yang terkait

dengan kondisi masa kerja yang diharapkan dapat

terpenuhi, sehingga pada akhirnya nilai yang diakui

sebagai beban didasarkan pada nilai penghargaan

yang memenuhi kondisi jasa terkait pada saat

tanggal vesting. Untuk kompensasi berbasis saham

dengan kondisi kinerja pasar, nilai wajar saat

tanggal pemberiannya diukur untuk merefleksikan

kondisi tersebut dan tidak terdapat penyesuaian

untuk perbedaan antara hasil yang diharapkan dan

aktualnya.

The amount recognized as an expense is adjusted to reflect the number of awards for which the related service conditions are expected to be met, such that the amount ultimately recognized as an expense is based on the number of awards that meet the related service conditions at the vesting date. For share-based compensation with market performance conditions, the respective grant-date fair value is measured to reflect such conditions and there is no true-up for differences between expected and actual outcomes.

Nilai wajar dari opsi saham ditentukan berdasarkan

hasil penilaian penilai berkualifikasi dengan

menggunakan metode Black-Scholes, yang

merupakan hirarki pengukuran nilai wajar level 2.

Asumsi dan input yang digunakan dalam teknik

penilaian termasuk harga pasar kuotasian di pasar

aktif untuk instrumen serupa, suku bunga bebas

risiko dan acuan yang digunakan dalam estimasi

tarif diskonto.

The fair value of the share options is computed based on calculations by a qualified valuer using the Black-Scholes model, which is considered as level 2 of the fair value hierarchy measurement. Assumptions and inputs in valuation technique include quoted market prices in active markets for similar instruments, risk-free and benchmark interest rates used in estimation discount rates.

Nilai wajar dari jumlah yang terutang kepada

karyawan terkait dengan program pembayaran

berbasis saham yang diselesaikan dengan kas,

diakui sebagai beban beserta perubahan terkaitnya

di liabilitas, selama periode sampai dengan

karyawan berhak tanpa syarat berhak atas

pembayaran tersebut. Kewajiban tersebut diukur

kembali pada setiap tanggal pelaporan dan pada

tanggal pembayaran berdasarkan nilai wajar dari

program. Setiap perubahan dalam kewajiban

diakui dalam laba rugi.

The fair value of the amount payable to employees which are related to cash-settled share based payment arrangements is recognized as an expense with a corresponding increase in liabilities, over the period during which the employees become unconditionally entitled to payment. The liability is remeasured at each reporting date and at settlement date based on the fair value of the program. Any changes in the liability are recognized in profit or loss.

Pada tanggal 31 Desember 2018 dan 2017,

Perusahaan telah mengakui masing-masing sebesar

Rp46.124 dan Rp30.831 sebagai akumulasi

pembayaran berbasis saham.

As of 31 December 2018 and 2017, the Company has recognized Rp46,124 and Rp30,831, respectively as accumulated share based payments.

FINANCIAL REPORTS










4. KAS DAN SETARA KAS 4. CASH AND CASH EQUIVALENTS



Kas Cash on hand Rupiah 12 13 Rupiah

Kas di bank (pihak ketiga) Cash in banks (third parties)

Rupiah Rupiah PT Bank DBS Indonesia 16.237 25.395 PT Bank DBS Indonesia PT Bank Permata Tbk. 3.545 5.963 PT Bank Permata Tbk. MUFG Bank, Ltd., Jakarta Branch 2.335 1.351 MUFG Bank, Ltd., Jakarta Branch PT Bank Central Asia Tbk. 934 526 PT Bank Central Asia Tbk. PT Bank HSBC Indonesia 930 417 PT Bank HSBC Indonesia Standard Chartered Bank Indonesia 179 180 Standard Chartered Bank Indonesia Citibank, NA., Indonesia Branch 117 57 Citibank, NA., Indonesia Branch PT Bank Mega Tbk. 81 82 PT Bank Mega Tbk. PT Bank CIMB Niaga Tbk. 20 10 PT Bank CIMB Niaga Tbk. PT Bank UOB Indonesia 6 6 PT Bank UOB Indonesia PT Bank ANZ Indonesia - 375 PT Bank ANZ Indonesia

24.384 34.362 Dolar AS US Dollar PT Bank DBS Indonesia 103.664 87.047 PT Bank DBS Indonesia PT Bank HSBC Indonesia 9.891 460 PT Bank HSBC Indonesia PT Bank Permata Tbk. 2.711 2.960 PT Bank Permata Tbk. MUFG Bank, Ltd., Jakarta Branch 1.517 1.356 MUFG Bank, Ltd., Jakarta Branch Standard Chartered Bank Indonesia 578 3.268 Standard Chartered Bank Indonesia Citibank, NA., Indonesia Branch 307 120 Citibank, NA., Indonesia Branch PT Bank Mega Tbk. 103 97 PT Bank Mega Tbk. PT Bank UOB Indonesia 69 65 PT Bank UOB Indonesia United Overseas Bank Limited - 44 United Overseas Bank Limited

118.840 95.417 Dolar AUS AUS Dollar PT Bank Permata Tbk. 21 23 PT Bank Permata Tbk.

Dolar Singapura Singapore Dollar United Overseas Bank Limited - 49 United Overseas Bank Limited

Jumlah kas di bank 143.245 129.851 Total cash in banks Deposito berjangka di bank pihak

ketiga Time deposits in third party banksRupiah Rupiah PT Bank DBS Indonesia 276.864 460.059 PT Bank DBS Indonesia

Dolar AS US Dollar PT Bank DBS Indonesia 362.216 278.255 PT Bank DBS Indonesia MUFG Bank, Ltd., Jakarta Branch - 33.995 MUFG Bank, Ltd., Jakarta Branch

362.216 312.250

Jumlah deposito berjangka 639.080

772.309

Total time deposits

Jumlah kas dan setara kas 782.337

902.173 Total cash and cash equivalents










4. KAS DAN SETARA KAS (lanjutan) 4. CASH AND CASH EQUIVALENTS (continued)

Pada tanggal 31 Desember 2018 dan 2017, Grup tidak menempatkan kas dan setara kasnya pada pihak berelasi.

As of 31 December 2018 and 2017, the Group has no cash and cash equivalents placed at related party.

Kisaran suku bunga kontraktual dari deposito berjangka di atas adalah sebagai berikut:

The range of contractual interest rates earned from the above time deposits is as follows:

31 Desember/


December 2017

Rupiah 5,6% - 8,0% 5,5% - 6,0% Rupiah Dolar AS 1,7% - 2,0% 0,3% - 1,12% US Dollar

5. PIUTANG 5. RECEIVABLES



Pihak berelasi Related parties

Dolar AS ) ) US Dollar Eastern Field Developments

Limited (a) 50.684

-)Eastern Field Developments

Limited (a) Rupiah ) ) Rupiah

PT Dwinad Nusa Sejahtera (b) 36.708 36.708) PT Dwinad Nusa Sejahtera (b) PT Agro Maju Raya (c) - 312.577) PT Agro Maju Raya (c) PT Tenaga Listrik Gorontalo (d) - 71.650) PT Tenaga Listrik Gorontalo (d) Piutang dividen: Dividend receivables:

PT Adaro Strategic Capital 89.303 111.137) PT Adaro Strategic Capital PT Adaro Energy Tbk. 40.621 49.850) PT Adaro Energy Tbk. PT Adaro Strategic Lestari 35.599 44.302) PT Adaro Strategic Lestari

Dikurangi cadangan kerugian Deducted allowance for penurunan nilai (36.708) (44.825) impairment losses

Jumlah pihak berelasi 216.207 581.399) Total related parties Pihak ketiga Third parties

Rupiah 144.923 41.829) Rupiah Dolar AS 34.590 27.954) US Dollar Dikurangi cadangan kerugian Deducted allowance for

penurunan nilai (29.820) (27.899) impairment losses

Jumlah pihak ketiga 149.693 41.884) Total third parties Jumlah bersih 365.900 623.283) Total, net

FINANCIAL REPORTS










5. PIUTANG (lanjutan) 5. RECEIVABLES (continued)

Perubahan cadangan kerugian penurunan nilai adalah sebagai berikut:

The movement of the allowance for impairment losses is as follows:



Saldo awal 72.724 54.068 Beginning balance Efek perubahan selisih kurs 1.921 385 Effect of changes of foreign exchanges Penambahan cadangan 36.708 44.825 Addition of allowance Pembalikan (44.825) (26.554) Reversal Saldo akhir 66.528 72.724 Ending balance

Informasi tambahan: Additional information:

a. Pada tanggal 8 Maret 2018, Perusahaan menandatangani perjanjian pinjaman dengan Eastern Field Developments Limited (EFDL) dengan jumlah fasilitas maksimum sebesar USD30.000.000 dan fasilitas ini tidak dapat ditarik kembali. Pinjaman ini diberikan oleh Perusahaan dalam rangka investasi dan akan jatuh tempo dalam jangka waktu 1 tahun sejak penarikan pinjaman. Pada tanggal 31 Desember 2018, masih terdapat saldo piutang EFDL sebesar USD3.500.000. Pinjaman ini akan jatuh tempo pada tanggal 30 Maret 2019.

a. On 8 March 2018, the Company entered into a loan agreement with Eastern Field Developments Limited (EFDL) with maximum facility up to USD30,000,000 and cannot be re-drawn. This loan provided by the Company for the purpose of investment and will mature within 1 year after drawdown. As of 31 December 2018, the balance of receivables from EFDL amounted to USD3,500,000. This loan will be due on 30 March 2019.

b. Perusahaan memberikan Pinjaman kepada PT Dwinad Nusa Sejahtera (Dwinad), dengan jumlah total pinjaman sebesar Rp64.689. Seluruh pinjaman tersebut akan jatuh tempo dalam waktu 2 (dua) hari setelah Dwinad melunasi dana pinjaman sehubungan dengan Perjanjian Pinjaman Senior antara Dwinad, Nomura Singapore Limited dan Indonesia Eximbank. Pinjaman ini akan jatuh tempo pada tahun 2019.

b. The Company provided a loan to PT Dwinad Nusa Sejahtera (Dwinad), with total loan amounting to Rp64,689.

All loans will due within 2 (two) days after Dwinad has repaid the balance in relation to the Senior Facility Agreement between Dwinad, Nomura Singapore Limited and Indonesia Eximbank. This loans will be due in 2019.

Selama tahun 2017, Dwinad telah melakukan pelunasan sebagian atas kewajibannya kepada Perusahaan berdasarkan Perjanjian Pinjaman tersebut dengan jumlah sebesar Rp27.981 dimana atas penyelesaian ini, Perusahaan mendapatkan tambahan 168.652.663 lembar saham Sumatra Copper & Gold Plc. Pada tanggal 31 December 2018 dan 2017, saldo piutang Dwinad adalah sebesar Rp36.708.

During 2017, Dwinad has partially settled its obligations to the Company pursuant to the Loan Agreement with a payment amount of Rp27,981 whereby from this settlement, the Company has obtained additional 168,652,663 shares in Sumatra Copper & Gold Plc. As of 31 December 2018 and 2017, the outstanding receivable from Dwinad was Rp36,708.

Pada tanggal 31 December 2018, Perusahaan telah mengakui cadangan kerugian penurunan nilai untuk piutang tersebut sebesar Rp36.708.

As of 31 December 2018, The Company provided an allowance for impairment losses for this receivable amounting to Rp36,708.

c. Sampai dengan 31 Desember 2017, grup memberikan pinjaman kepada PT Agro Maju Raya (AMR), entitas asosiasi, dengan jumlah total sebesar Rp312.577. Pada tanggal 30 Mei 2018, AMR telah menyelesaikan seluruh pinjaman tersebut.

c. Up to 31 December 2017, the Group provided loans to PT Agro Maju Raya (AMR), an associate, with total amount of Rp312,577. On 30 May 2018, AMR has settled all of these loans.










5. PIUTANG (lanjutan) 5. RECEIVABLES (continued)

d. Pada tanggal 21 November 2014, sebagaimana terakhir kali diubah pada tanggal 27 April 2018, Perusahaan menandatangani perjanjian pinjaman dengan PT Tenaga Listrik Gorontalo (TLG), perusahaan asosiasi, untuk jumlah maksimal sebesar Rp79.650. Per 31 Desember 2017, pinjaman yang diberikan kepada TLG adalah sebesar Rp71.650.

Pada tanggal 31 Desember 2017, Perusahaan mencadangkan kerugian penurunan nilai untuk piutang tersebut sebesar Rp44.825 dan pada tanggal 18 Juli 2018, TLG telah menyelesaikan seluruh pinjaman tersebut.

d. On 21 November 2014, as most recently amended on 27 April 2018, the Company entered into a loan agreement with PT Tenaga Listrik Gorontalo (TLG), an associate, to provide a loan to TLG in an aggregate principal amount up to Rp79,650. As of 31 December 2017, the loan provided to TLG was amounted to Rp71,650.

As of 31 December 2017, The Company provided an allowance for impairment loss of the receivables amounting to Rp44,825 and on 18 July 2018, TLG settled all of these loans.

Manajemen berkeyakinan bahwa cadangan kerugian penurunan nilai untuk piutang telah mencukupi untuk menutup kemungkinan kerugian atas tidak tertagihnya piutang.

Management believes that the allowance for impairment losses of receivables is adequate to cover any possible losses from non-collectible receivables.

6. KAS YANG DIBATASI PENGGUNAANNYA 6. RESTRICTED CASH



Pihak ketiga Third parties Rupiah Rupiah PT Bank UOB Indonesia 34 34 PT Bank UOB Indonesia

Dolar AS US Dollar Natixis 407 374 Natixis PT Bank UOB Indonesia 70 66 PT Bank UOB Indonesia ING Bank N.V 7 7.385 ING Bank N.V

484 7.825

Jumlah 518 7.859 Total

Pada tanggal 31 Desember 2018 dan 2017, kas yang dibatasi penggunaannya merupakan jaminan kas atas pinjaman bank (Catatan 10).

As of 31 December 2018 and 2017, the restricted cash was collateral for bank loans (Note 10).

FINANCIAL REPORTS


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ntit

y 3

20

- 5

0%

Le

vel 2

54

220

- 5

0%

Le

vel 2

54

1-

Kepe

mili

kan

di e

ntit

as in

fras

truk

tur

4/In

tere

st i

n in

fras

truc

ture

ent

ity

4

20 -

50%

Leve

l 2

68.7

9520

- 5

0%

Le

vel 2

11

.806

- Ke

pem

ilika

n di

ent

itas

infr

astr

uktu

r 5/

Inte

rest

in

infr

astr

uctu

re e

ntit

y 5

<

20%

Bi

aya/

Cost

84

< 20

%

Biay

a/Co

st

84


Eksh

ibit

E/2

3

Exh

ibit

E/2

3

PT

SA

RA

TO

GA

IN

VEST

AM

A S

ED

AY

A T

bk.

DA

N E

NT

ITA

S A

NA

K

CA

TA

TA

N A

TA

S LA

PO

RA

N K

EU

AN

GA

N K

ON

SOLID

ASI

AN

T

AH

UN

BER

AK

HIR

31 D

ESE

MBER

2018 D

AN

2017

(LA

NJU

TA

N)

(

Din

yata

kan d

ala

m j

uta

an R

upia

h,

kecu

ali din

yata

kan

lain

)

PT S

ARAT

OG

A IN

VES

TAM

A SE

DAY

A T

bk.

AND

SUBS

IDIA

RIE

S N

OT

ES T

O T

HE

CON

SOLI

DAT

ED F

INAN

CIAL

ST

ATEM

ENT

S

YEA

RS E

NDE

D 3

1 D

ECEM

BER

201

8 AN

D 20

17

(CO

NT

INU

ED)

(E

xpre

ssed

in m

illio

ns o

f Ru

piah

, un

less

oth

erw

ise

stat

ed)

7.

INV

EST

ASI

PA

DA

EFEK

EK

UIT

AS

(lan

juta

n)

7.

IN

VES

TM

ENT

IN E

QU

ITY

SEC

URI

TIE

S (c

onti

nued

)

Rinc

ian

inve

stas

i pad

a ef

ek e

kuit

as a

dala

h se

baga

i ber

ikut

(la

njut

an):

The

deta

il o

f th

e in

vest

men

t in

equ

ity

secu

riti

es is

as

foll

ows

(con

tinu

ed):

31 D

ese

mber/

Dec

embe

r 2018

31 D

ese

mber/

Dec

embe

r 2017

Invest

asi/

Inve

stm

ents

Pers

enta

se

kepem

ilik

an/

Perc

enta

ge o

f

owne

rshi

p

T

eknik

penilaia

n

nilai w

aja

r (C

ata

tan 2

e)/

Fa

ir v

alue

val

uati

on

tech

niqu

es

(Not

e 2e)

N

ilai w

aja

r/

Fair

val

ue

Pers

enta

se

kepem

ilik

an/

Perc

enta

ge o

f

owne

rshi

p

T

eknik

penilaia

n

nilai w

aja

r (C

ata

tan 2

e)/

Fa

ir v

alue

val

uati

on

tech

niqu

es

(Not

e 2e)

N

ilai w

aja

r/

Fair

val

ue

Rp

R

p

IN

FR

AST

RU

KT

UR

(la

nju

tan)

/ IN

FRAS

TRU

CTU

RE (

cont

inue

d)

In

vest

asi

di peru

sahaan n

on-p

ublik (

lanju

tan)/

Inve

stm

ent

in n

on-l

iste

d en

titi

es (

cont

inue

d):

EN

TIT

AS L

AIN

NY

A (

lanju

tan)/

OT

HER

EN

TIT

IES

(con

tinu

ed)

- Ke

pem

ilika

n di

ent

itas

infr

astr

uktu

r 6/

inte

rest

in i

nfra

stru

ctur

e en

tity

6

20

- 5

0%

Le

vel 3

16

7.57

220

- 5

0%

Le

vel 3

21

0.77

8-

Kepe

mili

kan

di e

ntit

as in

fras

truk

tur

7/in

tere

st in

inf

rast

ruct

ure

enti

ty 7

20 -

50%

Leve

l 2

1.

624

20

- 5

0%

Le

vel 2

1.

624

- Ke

pem

ilika

n di

ent

itas

infr

astr

uktu

r 8/

inte

rest

in i

nfra

stru

ctur

e en

tity

8

<

20%

Bi

aya/

Cost

34

7<

20%

Bi

aya/

Cost

34

7

Ju

mla

h in

vest

asi d

i inf

rast

rukt

ur/T

otal

inv

estm

ent

in i

nfra

stru

ctur

e

5.

681.

247

9.88

8.42

2

SUM

BER

DA

YA

ALAM

/ N

ATU

RAL

RESO

URC

ES

In

vest

asi di peru

sah

aan p

ublik/I

nve

stm

ent

in lis

ted e

nti

ties:

PT

AD

AR

O E

NER

GY

TBK

. (2

018:

15,2

4%

; 2017:

15,1

9%

)

Kepe

mili

kan

lang

sung

/dir

ect

owne

rshi

p

3,74

%

Leve

l 1

1.45

2.03

53,

68%

Le

vel 1

2.

192.

770

Kepe

mili

kan

tida

k la

ngsu

ng m

elal

ui a

sosi

asi/

Indi

rect

ow

ners

hip

thro

ugh:

PT

Adar

o St

rate

gic

Capi

tal (

ASC)

(**

)

25%

Le

vel 2

3.

197.

233

25%

Le

vel 2

4.

894.

234

Kepe

mili

kan

tida

k la

ngsu

ng m

elal

ui a

sosi

asi/

Indi

rect

ow

ners

hip

thro

ugh:

PT

Adar

o St

rate

gic

Lest

ari (

ASL)

(**

)

29,7

9%

Le

vel 2

1.

274.

467

29,7

9%

Le

vel 2

1.

950.

932

5.92

3.73

5

9.

037.

936

(*

*) N

ilai i

ni m

erup

akan

nila

i inv

esta

si P

erus

ahaa

n pa

da A

SC d

an A

SL d

iman

a ni

lai w

ajar

dar

i ASC

dan

ASL

seb

agia

n be

sar

bera

sal d

ari n

ilai i

nves

tasi

pad

a sa

ham

di P

T Ad

aro

Ener

gy T

bk m

elal

ui k

epem

ilika

n ti

dak

lang

sung

di P

T Ad

aro

Stra

tegi

c In

vest

men

ts/

This

am

ount

rep

rese

nts

the

inve

stm

ent

in A

SC a

nd A

SL w

here

as t

he f

air

valu

e of

ASC

and

ASL

mai

nly

repr

esen

ts t

he i

nves

tmen

t in

PT

Adar

o En

ergy

Tbk

thr

ough

indi

rect

ow

ners

hip

in P

T A

daro

Str

ateg

ic In

vest

men

ts.

FINANCIAL REPORTS


Eksh

ibit

E/2

4

E

xhib

it E

/24

PT

SA

RA

TO

GA

IN

VEST

AM

A S

ED

AY

A T

bk.

DA

N E

NT

ITA

S A

NA

K

CA

TA

TA

N A

TA

S LA

PO

RA

N K

EU

AN

GA

N K

ON

SOLID

ASI

AN

T

AH

UN

BER

AK

HIR

31 D

ESE

MBER

2018 D

AN

2017

(LA

NJU

TA

N)

(

Din

yata

kan d

ala

m j

uta

an R

upia

h,

kecu

ali din

yata

kan

lain

)

PT

SA

RAT

OG

A IN

VEST

AM

A S

ED

AY

A T

bk.

AN

D S

UBSI

DIA

RIE

S N

OT

ES

TO

TH

E C

ON

SOLI

DA

TED

FIN

AN

CIA

L ST

AT

EM

EN

TS

Y

EAR

S EN

DED

31 D

ECE

MBER

2018 A

ND

2017

(CO

NT

INU

ED

)

(Expre

ssed

in m

illi

ons

of

Rupia

h,

unle

ss o

therw

ise s

tate

d)

7.

INV

EST

ASI

PA

DA

EFEK

EK

UIT

AS

(lan

juta

n)

7.

INV

EST

MEN

T IN

EQ

UIT

Y S

EC

UR

ITIE

S (c

onti

nued)

Ri

ncia

n in

vest

asi p

ada

efek

eku

itas

ada

lah

seba

gai b

erik

ut (

lanj

utan

):

Th

e de

tail

of

the

inve

stm

ent

in e

quit

y se

curi

ties

is a

s fo

llow

s (c

onti

nued

):

31 D

ese

mber/

Dece

mb

er

2018

31 D

ese

mber/

Dece

mb

er

2017

Inve

stas

i/In

vest

ments

Pers

enta

se

kepem

ilik

an/

Perc

enta

ge o

f

ow

ner

ship

T

eknik

penilaia

n

nilai w

aja

r (C

ata

tan 2

e)/

Fair

va

lue v

alu

ati

on

tech

niq

ues

(Note

2e)

N

ilai w

aja

r/

Fair

va

lue

Pers

enta

se

kepem

ilik

an/

Perc

enta

ge o

f

ow

ners

hip

T

eknik

penilaia

n

nilai w

aja

r (C

ata

tan 2

e)/

Fair

va

lue v

alu

ati

on

tech

niq

ues

(Note

2e)

N

ilai w

aja

r/

Fair

va

lue

Rp

Rp

SU

MB

ER

DA

YA

ALAM

(la

nju

tan)

/ N

AT

UR

AL

RESO

UR

CE

S (c

onti

nued

)

Inve

stas

i di peru

sahaan p

ublik (

lanju

tan)/

Invest

ment

in l

iste

d e

nti

ties

(conti

nued

):

PT

MER

DEK

A C

OPPER

GO

LD

TB

K.

Ke

pem

ilika

n la

ngsu

ng/d

irec

t ow

ners

hip

dan

Kepe

mili

kan

tida

k la

ngsu

ng m

elal

ui e

ntit

as

anak

/Ind

irec

t ow

ners

hip

thro

ugh

subs

idia

ry:

PT T

rim

itra

Kar

ya J

aya

20

,76%

Le

vel 1

3.

025.

313

18,9

4%

Le

vel 1

1.

617.

173

PT

PR

OV

IDEN

T A

GR

O T

BK

.

Ke

pem

ilika

n ti

dak

lang

sung

mel

alui

ent

itas

ana

k/In

dire

ct o

wne

rshi

p th

roug

h su

bsid

iary

: PT

Sar

atog

a Se

ntra

Bus

ines

s

44,8

7%

Leve

l 1

830.

677

44,8

7%

Le

vel 1

1.

047.

930

SU

MA

TR

A C

OPPER

& G

OLD

PLC

, A

UST

RA

LIA

Ke

pem

ilika

n la

ngsu

ng/d

irec

t ow

ners

hip

35

,91%

Le

vel 1

-

38,4

0%

Le

vel 1

22

0.80

2

FIN

DER

S R

ESO

UR

CES L

TD

., A

UST

RA

LIA

Ke

pem

ilika

n la

ngsu

ng/d

irec

t ow

ners

hip

-

- -

6,09

%

Leve

l 1

119.

172

IN

TER

RA

RESO

UR

CES

LT

D.,

SIN

GA

PU

RA

/ SI

NG

APO

RE

Ke

pem

ilika

n la

ngsu

ng/d

irec

t ow

ners

hip

13

,54%

Le

vel 1

26

.086

15,6

7%

Le

vel 1

49

.863

SI

HA

YO

GO

LD

PLC

., A

UST

RA

LIA

Ke

pem

ilika

n la

ngsu

ng/d

irec

t ow

ners

hip

13

,33%

Le

vel 1

47

.949

13,3

3%

Le

vel 1

33

.484


Eksh

ibit

E/2

5

E

xhib

it E

/25

PT

SA

RA

TO

GA

IN

VEST

AM

A S

ED

AY

A T

bk.

DA

N E

NT

ITA

S A

NA

K

CA

TA

TA

N A

TA

S LA

PO

RA

N K

EU

AN

GA

N K

ON

SOLID

ASI

AN

T

AH

UN

BER

AK

HIR

31 D

ESE

MBER

2018 D

AN

2017

(LA

NJU

TA

N)

(

Din

yata

kan d

ala

m j

uta

an R

upia

h,

kecu

ali din

yata

kan

lain

)

PT

SA

RAT

OG

A IN

VEST

AM

A S

ED

AY

A T

bk.

AN

D S

UBSI

DIA

RIE

S N

OT

ES

TO

TH

E C

ON

SOLI

DA

TED

FIN

AN

CIA

L ST

AT

EM

EN

TS

Y

EAR

S EN

DED

31 D

ECE

MBER

2018 A

ND

2017

(CO

NT

INU

ED

)

(Expre

ssed

in m

illi

ons

of

Rupia

h,

unle

ss o

therw

ise s

tate

d)

7.

INV

EST

ASI

PA

DA

EFEK

EK

UIT

AS

(lan

juta

n)

7.

INV

EST

MEN

T IN

EQ

UIT

Y S

EC

UR

ITIE

S (c

onti

nued)

Rin

cia

n invest

asi

pada e

fek e

kuit

as

adala

h s

ebagai beri

kut

(lanju

tan):

The

deta

il o

f th

e in

vest

men

t in

equ

ity

secu

riti

es is

as

foll

ows

(con

tinu

ed):

31 D

ese

mber/

Dece

mb

er

2018

31 D

ese

mber/

Dece

mb

er

2017

Inve

stas

i/In

vest

ments

Pers

enta

se

kepem

ilik

an/

Perc

enta

ge o

f

Ow

ner

ship

T

eknik

penilaia

n

nilai w

aja

r (C

ata

tan 2

e)/

Fair

va

lue v

alu

ati

on

tech

niq

ues

(Note

2e)

N

ilai w

aja

r/

Fair

va

lue

Pers

enta

se

kepem

ilik

an/

Perc

enta

ge o

f

ow

ners

hip

T

eknik

penilaia

n

nilai w

aja

r (C

ata

tan 2

e)/

Fair

valu

e v

alu

ati

on

tech

niq

ues

(Note

2e)

N

ilai w

aja

r/

Fair

va

lue

Rp

R

p

SUM

BER

DA

YA

ALAM

(la

nju

tan)

/ N

AT

UR

AL

RESO

UR

CE

S (c

onti

nued

)

Inve

stas

i di peru

sahaan n

on-p

ublik/I

nve

stm

ent

in n

on-l

iste

d e

nti

ties:

EN

TIT

AS

LA

INN

YA

/ O

TH

ER

EN

TIT

IES

Kepem

ilik

an t

idak l

angsu

ng m

ela

lui

enti

tas

anak/In

dire

ct o

wne

rshi

p th

roug

h su

bsid

iari

es:

PT S

ara

toga S

entr

a B

usi

ness

, PT S

ury

a N

uansa

Ceri

a

- Kepem

ilik

an d

i enti

tas

sum

ber

daya a

lam

1/In

tere

st i

n na

tura

l re

sour

ce e

ntit

y 1

20 -

50%

Level 2

193

20 -

50%

Level 2

193

- Kepem

ilik

an d

i enti

tas

sum

ber

daya a

lam

2/In

tere

st i

n na

tura

l re

sour

ce e

ntit

y 2

< 2

0%

Bia

ya/Co

st

1

< 2

0%

Bia

ya/Co

st

1

- Kepem

ilik

an d

i enti

tas

sum

ber

daya a

lam

3/In

tere

st i

n na

tura

l re

sour

ce e

ntit

y 3

20 -

50%

Level 2

21.0

98

20 -

50%

Level 2

26.8

45

Jum

lah invest

asi

di su

mber

daya a

lam

/To

tal i

nves

tmen

t in

nat

ural

res

ourc

es

9.8

75.0

52

12.1

53.3

99

FINANCIAL REPORTS


Eksh

ibit

E/2

6

E

xhib

it E

/26

PT

SA

RA

TO

GA

IN

VEST

AM

A S

ED

AY

A T

bk.

DA

N E

NT

ITA

S A

NA

K

CA

TA

TA

N A

TA

S LA

PO

RA

N K

EU

AN

GA

N K

ON

SOLID

ASI

AN

T

AH

UN

BER

AK

HIR

31 D

ESE

MBER

2018 D

AN

2017

(LA

NJU

TA

N)

(

Din

yata

kan d

ala

m j

uta

an R

upia

h,

kecu

ali din

yata

kan

lain

)

PT

SA

RAT

OG

A IN

VEST

AM

A S

ED

AY

A T

bk.

AN

D S

UBSI

DIA

RIE

S N

OT

ES

TO

TH

E C

ON

SOLI

DA

TED

FIN

AN

CIA

L ST

AT

EM

EN

TS

Y

EAR

S EN

DED

31 D

ECE

MBER

2018 A

ND

2017

(CO

NT

INU

ED

)

(Expre

ssed

in m

illi

ons

of

Rupia

h,

unle

ss o

therw

ise s

tate

d)

7.

INV

EST

ASI

PA

DA

EFEK

EK

UIT

AS

(lan

juta

n)

7.

INV

EST

MEN

T IN

EQ

UIT

Y S

EC

UR

ITIE

S (c

onti

nued)

Rinc

ian

inve

stas

i pad

a ef

ek e

kuit

as a

dala

h se

baga

i ber

ikut

(la

njut

an):

The

deta

il o

f th

e in

vest

men

t in

equ

ity

secu

riti

es is

as

foll

ows

(con

tinu

ed):

31 D

ese

mber/

Dece

mb

er

2018

31 D

ese

mber/

Dece

mb

er

2017

Inve

stas

i/In

vest

ments

Pers

enta

se

kepem

ilik

an/

Perc

enta

ge o

f

ow

ner

ship

Teknik

penilaia

n

nilai w

aja

r (C

ata

tan 2

e)/

Fair

va

lue v

alu

ati

on

tech

niq

ues

(Note

2e)

N

ilai w

aja

r/

Fair

valu

e

Pers

enta

se

kepem

ilik

an/

Perc

enta

ge o

f

ow

ner

ship

T

eknik

penilaia

n

nilai w

aja

r (C

ata

tan 2

e)/

Fair

va

lue v

alu

ati

on

tech

niq

ues

(N

ote

2e)

N

ilai w

aja

r/

Fair

va

lue

Rp

Rp

PRO

DU

K K

ON

SUM

EN

/ C

ON

SUM

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In

vest

asi

di peru

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nvest

ment

in l

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nti

ties:

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l 1

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Kepe

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Kepe

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Kepe

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h su

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arat

oga

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ess

dan/

and

PT N

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ka K

enca

na

- Ke

pem

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itas

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est

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> 50

% Le

vel 2

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8>

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l 2

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647

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pem

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n di

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itas

pro

duk

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est

in c

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mer

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duct

ent

ity

7

< 20

% Le

vel 3

89

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< 20

% Bi

aya/

Cost

69

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Ju

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h in

vest

asi d

i pro

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umen

/Tot

al in

vest

men

t in

con

sum

er p

rodu

cts

2.54

5.38

3

2.53

3.67

2


Eksh

ibit

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Exh

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7

PT

SA

RA

TO

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IN

VEST

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TA

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AN

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ON

SOLID

ASI

AN

T

AH

UN

BER

AK

HIR

31 D

ESE

MBER

2018 D

AN

2017

(LA

NJU

TA

N)

(

Din

yata

kan d

ala

m j

uta

an R

upia

h,

kecu

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kan

lain

)

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A IN

VES

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A SE

DAY

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AND

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O T

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ENT

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BER

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ED)

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xpre

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less

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ise

stat

ed)

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(lan

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ITY

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S (c

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Rinc

ian

inve

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ikut

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The

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il o

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e in

vest

men

t in

equ

ity

secu

riti

es is

as

foll

ows

(con

tinu

ed):

31 D

ese

mber/

Dec

embe

r 2018

31 D

ese

mber/

Dec

embe

r 2017

Invest

asi/

Inve

stm

ents

Pers

enta

se

kepem

ilik

an/

Perc

enta

ge o

f

owne

rshi

p

T

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n

nilai w

aja

r (C

ata

tan 2

e)/

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ir v

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val

uati

on

tech

niqu

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(Not

e 2e)

N

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r/

Fair

valu

e

Pers

enta

se

kepem

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an/

Perc

enta

ge o

f

owne

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p

Teknik

penilaia

n

nilai w

aja

r (C

ata

tan 2

e)/

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ir v

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val

uati

on

tech

niqu

es

(Not

e 2e)

N

ilai w

aja

r/

Fair

valu

e

Rp

Rp

LA

IN-L

AIN

/ O

TH

ERS

In

vest

asi

di peru

sahaan n

on-p

ublik/I

nves

tmen

t in

non

-lis

ted

enti

ties

:

Kepe

mili

kan

lang

sung

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p

-

Inve

stas

i di d

ana

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vest

men

t in

fun

d 1

-

Leve

l 2

227.

993

-

Leve

l 2

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690

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vest

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i dan

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inve

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und

2

- Bi

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Cost

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-

-

Ke

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mel

alui

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ana

k/In

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wne

rshi

p th

roug

h su

bsid

iari

es:

PT

Nug

raha

Eka

Ken

cana

dan

/and

PT

Sara

toga

Sen

tra

Busi

ness

- In

vest

asi d

i dan

a 3/

inve

stm

ent

in f

und

3

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aya/

Cost

35

7.29

0-

-

--

Inve

stas

i di r

eksa

dana

1/i

nves

tmen

t in

a m

utua

l fu

nd 1

- Le

vel 1

1.

945

-

Leve

l 1

2.03

6-

Kepe

mili

kan

di e

ntit

as la

in-l

ain

1/in

tere

st in

oth

er e

ntit

y 1

<

20%

Biay

a/Co

st

1.93

1<

20%

Bi

aya/

Cost

1.93

1

Ju

mla

h in

vest

asi d

i lai

n-la

in/T

otal

inve

stm

ent

in o

ther

s

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8.48

8

179.

657

JU

MLA

H IN

VEST

ASI

PA

DA

EFEK

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AS/

TO

TAL

INV

EST

MEN

T IN

EQ

UIT

Y S

ECU

RIT

IES

18.7

30.1

70

24.7

55.1

50

FINANCIAL REPORTS










7. INVESTASI PADA EFEK EKUITAS (lanjutan) 7. INVESTMENT IN EQUITY SECURITIES (continued)

Ringkasan informasi tambahan investasi Summary of additional information for investment

Ringkasan informasi tambahan investasi pada efek ekuitas adalah sebagai berikut:

A summary of additional information for investment in equity securities is as follows:

Sumatra Copper and Gold Plc. (SUM) Sumatra Copper and Gold Plc. (SUM) Selama tahun 2017, Perusahaan melakukan penambahan investasi di SUM sebanyak 1.195.427.387saham dengan nilai sebesar Rp150.698 sebagai bagian dari restrukturisasi utang pemegang saham.

During 2017, the Company acquired 1,195,427,387 additional shares in SUM with total value of Rp150,698as a part of shareholder debt restructuring.

Pada tanggal 31 Desember 2018, Perusahaan telah mencadangkan kerugian penurunan nilai atas seluruh nilai investasi di SUM terkait dengan penangguhan operasi tambang di PT Dwinad Nusa Sejahtera (Dwinad), entitas anak SUM. Dwinad terus berdiskusi dengan Pemberi Pinjaman dan pemangku kepentingantentang opsi restrukturisasi.

On 31 December 2018, the Company has reservedinvestment losses for all investment values in SUM related to the suspension of operation at PT Dwinad Nusa Sejahtera (Dwinad), a subsidiary of SUM. Dwinadcontinues to discuss with its Lenders and stakeholders about restructuring options.

PT Merdeka Copper Gold Tbk (MDKA) PT Merdeka Copper Gold Tbk (MDKA) Selama tahun 2017, Perusahaan telah memperoleh tambahan investasi sebanyak 1.946.400 saham MDKAdengan jumlah harga perolehan sebesar Rp4.215.

During 2017, the Company acquired 1,946,400 additional shares of MDKA with total acquisition cost of Rp4,215.

Sepanjang tahun 2018, Grup telah melakukan beberapa kegiatan investasi dan divestasi di MDKA(termasuk dalam rangka berpartisipasi dalam penerbitan saham baru dengan Hak Memesan Efek Terlebih Dahulu (HMETD), serta pembelian dan penjualan dari pasar). Adapun jumlah tambahan investasi dari partisipasi dalam HMETD dan pembelian dari pasar pada tahun 2018 adalah sebanyak 237.486.887 saham dengan total harga perolehan sebesar Rp547.299. Pada tahun 2018, Perusahaanmenjual 128.800.000 saham dengan nilai sebesar Rp309.120.

During 2018, the Group has carried out several investment activities and divestment in MDKA(including in order to participate in the right issue with Preemptive Rights (HMETD), and buying and sellingfrom the market). The additional investment from participation in the right issue and purchases from the market in 2018 was 237,486,887 shares with the total acquisition price of Rp547,299. In 2018, the Companysold 128,800,000 shares with total value of Rp309,120.

Finders Resources Limited (Finders) Finders Resources Limited (Finders) Pada tanggal 9 April 2018, Perusahaan telah menjual seluruh kepemilikan saham di Finders kepada Eastern Field Development Limited (EFDL) dengan nilai sebesar USD8.464.942.

On 9 April 2018, the Company sold its ownership in Finders to Eastern Field Development Limited (EFDL) for USD8,464,942.











Ringkasan informasi tambahan investasi (lanjutan) Summary of additional information for investment(continued)

PT Adaro Energy Tbk (ADRO) PT Adaro Energy Tbk (ADRO)

Selama tahun 2018, Perusahaan telah memperoleh tambahan saham ADRO sebanyak 16.182.300 saham dengan akumulasi biaya perolehan sebesar Rp26.698.

During 2018, the Company acquired 16,182,300 additional ADRO shares with a total accumulated acquisition cost of Rp26,698.

Sihayo Gold Limited (Sihayo) Sihayo Gold Limited (Sihayo)

Selama tahun 2018, Perusahaan telah memperoleh tambahan saham Sihayo sebanyak 20.595.200 saham dengan akumulasi biaya perolehan sebesar Rp3.047.

During 2018, the Company acquired 20,595,200 additional Sihayo shares with a total accumulated acquisition cost of Rp3,047.

PT Provident Agro Tbk. (PALM) PT Provident Agro Tbk. (PALM)

Selama tahun 2017, Grup telah memperoleh tambahan saham PALM sebanyak 50.708.128 saham dengan akumulasi biaya perolehan sebesar Rp18.817.

During 2017, the Group acquired 50,708,128 additional PALM shares with a total accumulated acquisition cost of Rp18,817.

PT Tower Bersama Infrastructure Tbk. (TBIG) PT Tower Bersama Infrastructure Tbk. (TBIG)

Selama tahun 2017, Grup telah memperoleh tambahan saham TBIG sebanyak 12.088.200 saham dengan akumulasi biaya perolehan sebesar Rp61.147.

During 2017, the Group acquired 12,088,200 additional TBIG shares with a total accumulated acquisition cost of Rp61,147.

Selama tahun 2018, Grup telah memperoleh tambahan saham TBIG sebanyak 1.937.800 saham dengan akumulasi biaya perolehan sebesar Rp9.601 dan sebanyak 26.703.100 saham yang berasal dari penyelesaian equity share swap sehubungan dengan obligasi tukar (Catatan 11).

During 2018, the Group acquired 1,937,800 additional TBIG shares with a total accumulated acquisition cost of Rp9,601 and 26,703,100 shares of TBIG which come from equity share swap settlement related to exchangeable bonds (Note 11).

Ringkasan perubahan nilai wajar Summary of changes in fair values

A summary of changes in fair values for the years ended 31 December 2018 and 2017 was as follows:

31 Desember/December 2018

Saldo awal/

Perubahan nilai wajar/ Saldo akhir/

Beginning Penambahan/ Changes Pelepasan/ Ending balance Additions in fair value Divestments balance

Infrastruktur 9.888.422) 214.538 (4.348.765) (72.948) 5.681.247 InfrastructureSumber daya alam 12.153.399) 843.167 (2.767.954) (353.560) 9.875.052 Natural resourcesProduk konsumen 2.533.672) 170.659 (157.316) (1.632)) 2.545.383 Consumer productsLainnya 179.657) 421.717 27.114) -) 628.488 Others

24.755.150) 1.650.081 (7.246.921) (428.140) 18.730.170

FINANCIAL REPORTS












Saldo awal/

Perubahan nilai wajar/ Saldo akhir/

Beginning Penambahan/ Changes Pelepasan/ Ending balance Additions in fair value Divestments balance

Infrastruktur 9.169.932 61.148) 2.076.300) (1.418.958) 9.888.422) InfrastructureSumber daya alam 12.071.719) 176.633) 94.659) (189.612) 12.153.399) Natural resourcesProduk konsumen 2.363.487) 154.090) 101.158) (85.063) 2.533.672) Consumer productsLainnya 196.478) 2.699) (19.429) (91) 179.657) Others

23.801.616) 394.570) 2.252.688) (1.693.724) 24.755.150)

Metode perhitungan nilai wajar The calculation of the fair value method

Perhitungan metode nilai wajar level 2 dan 3 menggunakan beberapa metode pendekatan sebagai berikut:

The calculation of the fair value method level 2 and 3 use several methods of approach as follows:

Pendekatan nilai aset bersih Net asset value approach

Perusahaan menggunakan nilai tercatat aset bersih pada perusahaan investasi dalam menentukan nilai investasi mereka. Investasi yang dinilai dengan menggunakan pendekatan ini, umumnya hanya berlaku untuk entitas (entitas dimana Grup melakukan investasi) yang memiliki pos-pos dalam laporan keuangannya di mana nilai tercatatnya mendekati nilai wajarnya.

The Company uses the book value of net assets of the investees in determining the value of their investments. The investments valued using this approach generally is only applicable for entities (investees) which have the items in the financial statements where the book value approximates their fair value.

Pendekatan pasar dan pendekatan pendapatan Market approach and income approach

Manajemen menggunakan dua pendekatan yaitu pendekatan pendapatan (analisa arus kas terdiskonto (DCF)) dan pendekatan pasar (berdasarkan pada beberapa pasar dari perusahan sejenis) untuk mengestimasi nilai wajar dari investasi tersebut. Pendekatan pasar digunakan untuk memeriksa kembali nilai estimasi berdasarkan analisa DCF.

Management uses both income approach (the Discounted Cash Flow (DCF) analysis) and market approach (based on the market multiple from comparable companies) to estimate the fair value of the investments. The market approach is used to cross-check the value estimated based on the DCF analysis.

8. INSTRUMEN KEUANGAN DERIVATIF 8. DERIVATIVE FINANCIAL INSTRUMENTS

a. Kontrak opsi mata uang asing a. Foreign currency option contracts

Kontrak opsi mata uang asing yang diadakan oleh Perseroan dengan pihak ketiga berikut memiliki ketentuan pada tanggal 31 Desember 2018 dan 2017 sebagai berikut:

The foreign currency option contracts entered into by the Company with the following third parties had terms as of 31 December 2018 and 2017 as follows:

Nilai wajar pada/ Fair value as of

Tipe kontrak/ Contract

type Jumlah Nosional/ Notional amount

Tingkat premi/ Contract rate


31 Desember/ December

2017

Tanggal efektif/

Effective date

Tanggal jatuh tempo/

Maturity date

Natixis, Paris/ France Beli/Buy

USD 81.700.000 13.500 – 15.000

- 23.289

19 September/ September

2017 15 Mei/

May 2018 DBS Bank Ltd,

Singapura/ Singapore Beli/Buy

USD 25.000.000 13.800 – 15.300 21.369 13.019

26 Oktober/ October 2017


DBS Bank Ltd, Singapura/ Singapore Beli/Buy

USD

36.750.000 (terdiri atas 3 bagian

masing-masing sebesar USD 12.250.000)/

consist of 3 legs of USD12.250.000 each) 13.800 – 15.300 28.306 15.757


1 Pebruari,2 Mei & 2 Agustus/ 1 February,

2 May & 2 August 2019









8. INSTRUMEN KEUANGAN DERIVATIF (lanjutan) 8. DERIVATIVE FINANCIAL INSTRUMENTS (continued)

a. Kontrak opsi mata uang asing (lanjutan) a. Foreign currency option contracts (continued)

Kontrak di atas digunakan oleh Perusahaan untuk

mengurangi risiko arus kas dari fluktuasi nilai tukar

USD/IDR untuk pembayaran pokok utang obligasi di

anak Perusahaan yang berpotensi terjadi di bulan

Mei 2018 (Catatan 11), dan untuk pembayaran

hutang bank Perusahaan dan entitas anak yang

akan jatuh tempo pada tahun 2019.

The contracts are used by the Company to reduce the cash flows risk arising from USD/IDR exchange rate fluctuations for the principal repayment of bonds payable in a subsidiary of the Company which potentially occur in May 2018 (Note 11) and for the payments of the Company’s and subsidiary’sbank loan which will mature in 2019.

Sesuai dengan yang tertera di dalam kontrak,

instrumen ini memberikan perlindungan penuh

kepada Perusahaan atas fluktuasi nilai tukar

USD/IDR jika nilai tukar USD/IDR melebihi kurs

batas bawah tetapi kurang dari atau sama dengan

kurs batas atas. Namun demikian, instrumen

lindung nilai ini hanya akan menyediakan

perlindungan maksimal sebesar Rp1.500 (Rupiah

penuh), apabila nilai tukar USD/IDR melebihi kurs

batas atas.

As stipulated in the foreign currency option contracts, the instruments provide the Company with full protection against USD/IDR exchange rate fluctuation if the USD/IDR spot rate exceeds lower strike rate but is less than or equal to upper strike rate. The hedging instrument, however, will only provide protection capped at Rp1,500 (whole Rupiah) if the USD/IDR spot rate exceeds upper strike rate.

Perusahaan membayar premium dengan jumlah

sebesar USD4.392.720 untuk kontrak opsi mata

uang asing ini yang dicatat sebagai bagian dari

beban bunga di dalam laporan laba rugi dan

penghasilan komprehensif lain konsolidasian untuk

tahun yang berakhir pada tanggal 31 Desember

2017.

The Company paid the total premium of USD4,392,720 for the foreign currency option and recorded this as part of interest expenses in the consolidated statement of profit or loss and other comprehensive income for the year ended 31 December 2017.

b. Kontrak interest rate swap b. Interest rate swap contracts

Perusahaan mengadakan kontrak interest rate

swap dengan tujuan lindung nilai risiko fluktuasi

arus kas yang ditimbulkan oleh perubahan tingkat

suku bunga atas pinjaman yang diterima dalam

mata uang asing dengan tingkat suku bunga

mengambang.

The Company entered into interest rate swap contracts to hedge the risks of fluctuations in cash flows arising from changes in interest rate on theborrowings denominated in foreign currency which bear floating interest rates.

Pada tanggal 31 Desember 2018, nilai wajar dari

kontrak opsi mata uang asing dan interest rate swap menghasilkan aset derivatif sebesar Rp49.675

(USD3.434.656) dan liabilitas derivatif sebesar Rp13.279

(USD917.753).

As of 31 December 2018, the fair value of the foreign currency option contracts and the interest rate swapresulted as derivative assets of Rp49,675 (USD3,434,656) and derivative liabilities of Rp.13,279 (USD917,753).

Pada tanggal 31 Desember 2017, nilai wajar dari

kontrak opsi mata uang asing menghasilkan aset

derivatif sebesar Rp52.065 (USD3.841.283).

As of 31 December 2017, the fair value of the foreign currency option contracts resulted as derivative assets of Rp52,065 (USD 3,841,283).

Nilai wajar pada/

Fair value as of

Tipe

kontrak/

Contract type

Jumlah nosional/

Notional amount

Tingkat suku

bunga tetap/

Fixed interest rate

31 Desember/

December 2018

31 Desember/

December 2017

Tanggal

efektif/

Effective date

Tanggal jatuh

tempo/

Maturity date

MUFG Bank Ltd.,

Jakarta Branch

Mengamb

ang jadi

tetap/

Floating to fixed rate

USD 25.000.000 2,89% (4.728) - 12 September/

September 2018

29 Maret/March 2023

DBS Bank Ltd.,

Singapura/Singapore

Mengamb

ang jadi

tetap/

Floating to fixed rate

USD 25.000.000 3,09% (8.551) - 15 Oktober/

October 2018

15 September/

September 2023

FINANCIAL REPORTS










9. PERPAJAKAN 9. TAXATION

a. Pajak dibayar di muka a. Prepaid taxes



Perusahaan The Company

Pajak Pertambahan Nilai 519 - Value Added Tax Entitas anak Subsidiaries

Pajak penghasilan pasal 4 (2) 300 136 Income tax article 4 (2) 819 136

b. Utang pajak penghasilan b. Income tax payable


31 Desember/

December 2017

Perusahaan The Company Pajak penghasilan badan Corporate income tax

Tahun kini 29.484 27.741 Current year 29.484 27.741

Entitas anak Subsidiaries Pajak penghasilan badan Corporate income tax

Tahun kini 17.207 102.689 Current year 17.207 102.689

46.691 130.430

c. Utang pajak lainnya c. Other tax payables




Pajak pertambahan nilai - 60 Value added tax Pajak penghasilan: Income tax:

Pasal 4(2) 8 8 Article 4(2) Pasal 21 854 11.095 Article 21 Pasal 23 377 63 Article 23

1.239 11.226

Entitas anak Subsidiaries Pajak pertambahan nilai 225 1.856 Value added tax Pajak penghasilan pasal 23 29 21 Income tax article 23 254 1.877

1.493 13.103










9. PERPAJAKAN (lanjutan) 9. TAXATION (continued)

d. Perhitungan pajak kini d. Calculation of current tax

Rekonsiliasi antara (rugi) laba konsolidasian sebelum pajak penghasilan dengan beban pajak penghasilan adalah sebagai berikut:

A reconciliation between consolidated (loss) profit before income tax and income tax expense is as follows:

31 Desember/

December 2018

31 Desember/

December 2017* (Rugi) laba konsolidasian sebelum Consolidated (loss) profit before

pajak penghasilan (6.685.056) 3.250.592 income tax

Dikurangi: Less: (Rugi) laba sebelum (4.260.505) 1.864.702 (Loss) profit before income tax

pajak penghasilan entitas anak of subsidiaries Eliminasi dan penyesuaian lainnya ke

metode biaya (3.139.456) 412.034 Elimination and other adjustments

to cost method

Laba sebelum pajak Profit before income tax penghasilan Perusahaan 714.905 973.856 of the Company

Koreksi fiskal: Fiscal corrections: Penghasilan dividen final (677.780) (770.706) Final dividend income Keuntungan atas penjualan aset

investasi dan derivatif (84.988) (403.413)Gain on sale of investment and

derivative assets Pembalikan atas piutang tak

tertagih (44.825) (26.554)Reversal of allowance for

doubtful accounts Beban bunga 152.699 158.092 Interest expenses Beban gaji karyawan dan

kompensasi karyawan 66.743 79.174 Salary expenses and other

employees compensation Penyisihan piutang tak tertagih 36.708 44.825 Bad debt expenses Beban imbalan kerja 4.038 (2.072) Post employment benefit Lainnya 77.613 127.197 Others

Laba kena pajak Perusahaan 245.113 180.399 The Company’s taxable profit Tarif pajak yang berlaku 25% 25% Enacted tax rate Beban pajak penghasilan kini Current income tax expense

Perusahaan 61.278 45.100 The Company Entitas anak 19.484 137.689 Subsidiaries

Beban pajak penghasilan kini 80.762 182.789 Current income tax expense Dikurangi: kredit pajak penghasilan Less: income tax credit

Perusahaan (31.794) (17.359) The Company Entitas anak (2.577) (35.136) Subsidiaries

Jumlah kredit pajak penghasilan (34.371) (52.495) Total income tax credit Taksiran utang pajak Estimated income tax payables

Perusahaan (29.484) (27.741) The Company Entitas anak (17.207) (102.689) Subsidiaries

Jumlah taksiran utang pajak (46.691) (130.430)Total estimated income tax

payable Taksiran pajak dibayar dimuka Estimated prepaid tax

Entitas anak 300 136 Subsidiaries

FINANCIAL REPORTS









* Disajikan kembali (lihat Catatan 2g dan 24) As restated (see Note 2g dan 24) *


e. Aset dan liabilitas pajak tangguhan e. Deferred tax assets and liabilities

31 Desember/December 2018 Diakui dalam penghasilan Diakui komprehensif dalam lain/ Saldo laba rugi/ Recognized in Saldo awal/ Recognized other akhir/

Beginning in profit or comprehensive Ending

balance loss income balance

Aset (liabilitas) pajak tangguhan

Perusahaan:

Deferred tax assets (liabilities) of the Company:

Liabilitas imbalan kerja 4.292 1.009 (335) 4.966 Employee benefits liabilities

Investasi pada efek ekuitas (712.092) 620.059 - (92.033) Investment in equity

securities (707.800) 621.068 (335) (87.067)

Liabilitas pajak tangguhan

entitas anak, bersih (44.492) 9.918 - (34.574)

Deferred tax liabilities of the subsidiaries, net

Liabilitas pajak tangguhan, bersih (752.292) (121.641) Deferred tax liabilities, net

31 Desember/December 2017*

Diakui dalam penghasilan Diakui komprehensif dalam lain/ Saldo laba rugi/ Recognized in Saldo awal/ Recognized other akhir/

Beginning in profit or comprehensive Ending

balance loss income balance

Aset (liabilitas) pajak tangguhan

Perusahaan:

Deferred tax assets (liabilities) of the Company:

Liabilitas imbalan kerja 4.292 (518) 518 4.292 Employee benefits liabilities

Investasi pada efek ekuitas (593.940) (118.152) - (712.092) Investment in equity

securities (589.648) (118.670) 518 (707.800)

Liabilitas pajak tangguhan

entitas anak, bersih (256.997) 212.505 - (44.492)

Deferred tax liabilities of the subsidiaries, net

Liabilitas pajak tangguhan, bersih (846.645) (752.292) Deferred tax liabilities, net












e. Aset dan liabilitas pajak tangguhan (lanjutan) e. Deferred tax assets and liabilities (continued)

Berikut aset pajak tangguhan yang belum diakui:

The following deferred tax assets have not been recognized:



Provisi atas penurunan nilai piutang 16.632 18.181Provision for impairment of

receivables Kerugian yang belum direalisasi atas investasi pada efek ekuitas 380.757 240.508

Unrealized losses on investment in equity securities

Rugi fiskal 41.842 15.474 Tax loss carry forwards 439.231 274.163

Perbedaan temporer yang menimbulkan aset pajak tangguhan untuk kerugian yang belum direalisasi atas investasi pada efek ekuitas tidak akan kadaluwarsa, namun secara historis, Perusahaan tidak dapat mengakui kerugian investasi offshoresebagai biaya yang dapat dikurangkan untuk keperluan perhitungan pajak, oleh karena itu Perusahaan tidak mengakui aset pajak tangguhan atas hal ini.

The temporary difference that gives rise to the deferred tax asset for the unrealized losses on investment in equity securities does not expire, however historically the Company cannot account for losses on offshore investments as deductible expenses for the income tax calculation, accordingly the Company does not recognize the deferred tax assets with respect to this matter.

Perbedaan temporer yang menimbulkan aset pajak tangguhan untuk penyisihan penurunan nilai piutang juga tidak akan kadaluwarsa, namun sebelum cadangan tersebut dapat dibebankan, Perusahaan harus memberikan bukti bahwa piutang tidak tertagih, dan dengan demikian harus menghapus nilai piutang yang tidak tertagih.

The temporary differences that gives rise to the deferred tax asset for the provision for impairment of receivables also does not expire, however before such provision can be deductible the Company must provide evidence that the receivables are not collectible, and thereby must write off the uncollectible balances.

Rugi fiskal, yang sebagian besar berasal dari anak Perusahaan pada tanggal 31 Desember 2018 dan 2017 sebesar Rp167.369 dan Rp61.895, akan berakhir di tahun 2023 (2017: berakhir di 2022) jika tidak dimanfaatkan dengan laba fiskal pada masa mendatang. Aset pajak tangguhan tidak diakui sehubungan dengan hal-hal ini karena tidak mungkin bahwa laba fiskal pada masa mendatang akan memadai untuk dikompensasi dengan keuntungan yang bisa dimanfaatkan oleh Grup.

Tax loss carry forwards, which mainly coming from subsidiaries as of 31 December 2018 and 2017 amounted to Rp167,369 and Rp61,895 respectively, will expire in 2023 (2017: expire in 2022) if not utilized against future taxable profits. Deferred tax assets have not been recognized with respect to these items because it is not probable that future taxable profits will be available against which the Group can utilize the benefits therefrom.

FINANCIAL REPORTS











f. Beban pajak penghasilan f. Income tax expense

Rekonsiliasi antara beban pajak penghasilan, yang dihitung dengan menggunakan tarif pajak yang berlaku atas laba komersial sebelum pajak penghasilan dan beban pajak penghasilan bersih, seperti yang tercantum dalam laporan laba rugi konsolidasian adalah sebagai berikut:

The reconciliation between income tax expense as calculated by applying the applicable tax rate to the commercial profit before income tax and the net income tax expense as presented in the consolidated statement of profit or loss is as follows:

31 Desember/


December 2017 * (Rugi) laba konsolidasian sebelum Consolidated (loss) profit before

pajak penghasilan (6.685.056) 3.250.592 income tax Dikurangi: Less: (Rugi) laba sebelum pajak penghasilan entitas anak (4.260.505) 1.864.702

(Loss) profit before income tax of subsidiaries

Eliminasi dan penyesuaian ke metode biaya (3.139.456) 412.034

Eliminations and other and adjustments to cost method

Laba sebelum pajak Profit before income tax of

penghasilan Perusahaan 714.905 973.856 the Company Tarif pajak yang berlaku 25% 25% Statutory tax rate Beban pajak penghasilan 178.726 243.464 Income tax expense Pengaruh pajak Tax effect on fiscal

atas koreksi fiskal (118.457) (197.846) corrections Pengaruh pajak atas kerugian Tax effect on loss on (loss) gain

investasi pada efek ekuitas (620.059) 118.152 investment in equity securities (Manfaat) beban pajak penghasilan: Income tax (benefit) expense:

Perusahaan (559.790) 163.770 The Company Entitas anak 9.566 (74.816) Subsidiaries

(Manfaat) beban pajak penghasilan (550.224) 88.954 Income tax (benefit) expense












f. Beban pajak penghasilan (lanjutan) f. Income tax expense (continued)

Komponen beban pajak penghasilan adalah sebagai berikut:

The components of income tax expense are as follows:


31 Desember/ December 2017 *

Kini:

Current: Perusahaan 61.278 45.100 The Company Entitas anak 19.484 137.689 Subsidiaries

80.762 182.789 Tangguhan: Deferred:

Perusahaan (621.068) 118.670 The Company Entitas anak (9.918) (212.505) Subsidiaries

(630.986) (93.835)

(550.224) 88.954

Sesuai peraturan perpajakan di Indonesia, Perusahaan dan entitas anak melaporkan/ menyetorkan pajak-pajaknya berdasarkan self-assesssment. Otoritas pajak dapat menetapkan atau mengubah pajak tersebut dalam batas waktu yang ditentukan sesuai dengan ketentuan yang berlaku.

Under the taxation laws of Indonesia, the Company and subsidiaries submit tax returns on the basis of self-assessment. The tax authorities may assess or amend taxes within the statute of limitations, under prevailing regulations.

Posisi pajak Perusahaan mungkin dapat dipertanyakan otoritas pajak. Manajemen dengan seksama mempertahankan posisi pajak Perusahaan yang diyakininya belandaskan dasar teknis yang kuat, sesuai dengan peraturan perpajakan. Oleh karena itu, manajemen berkeyakinan bahwa akrual atas liabilitas pajak mencukupi untuk seluruh tahun pajak yang belum diperiksa berdasarkan penelaahan atas berbagai faktor, termasuk interpretasi peraturan perpajakan dan pengalaman sebelumnya. Penelaahan tersebut didasarkan atasestimasi dan asumsi dan melibatkan pertimbangan akan kejadian di masa depan. Informasi baru mungkin dapat tersedia yang menyebabkan manajemen merubah pertimbangannya mengenai kecukupan liabilitas pajak yang ada. Perubahan terhadap liabilitas pajak ini akan mempengaruhi beban pajak di periode dimana penentuan tersebut dibuat.

The Company’s tax positions may be challenged by the tax authorities. Management vigorously defends the Company’s tax positions which are believed to be grounded on sound technical basis, in compliance with tax regulations. Accordingly, management believes that the accruals for tax liabilities are adequate for all open tax years based on the assessment of various factors, including interpretations of tax law and prior experience. The assessment relies on estimates and assumptions and may involve judgment about future events. New information may become available that causes management to change its judgment regarding the adequacy of existing tax liabilities. Such changes to tax liabilities will impact tax expense in the period in which such determination is made.


FINANCIAL REPORTS










10. PINJAMAN 10. BORROWINGS

31 Desember/


December 2017


Pinjaman bank 3.485.087 1.785.444 Bank loans Entitas anak Subsidiaries

Pinjaman bank 434.430 677.400 Bank loans Akrual beban bunga 44.995 16.945 Accrued interest Dikurangi: biaya transaksi yang belum

diamortisasi

(26.593 ) (14.376 )

Less: unamortized transaction costs

3.937.919 2.465.413



Dalam ribuan

Dolar AS/ In thousands of US Dollar

Setara Rp/ Equivalent

Rp

Dalam ribuanDolar AS/

In thousands of US Dollar

Setara Rp/ Equivalent

Rp Perusahaan The Company

Pinjaman bank: Bank loans:

Rupiah Rupiah MUFG Bank, Ltd., Jakarta

Branch - 635.000 - 390.000 MUFG Bank, Ltd., Jakarta

Branch PT Bank DBS Indonesia - 725.000 - - PT Bank DBS Indonesia Dolar AS US Dollar PT Bank HSBC Indonesia 60.000 868.860 - - PT Bank HSBC Indonesia ING Bank N.V. 40.000 579.240 40.000 541.920 ING Bank N.V. Natixis 36.750 532.177 63.000 853.524 Natixis Standard Chartered Bank

London 10.000 144.810 - - Standard Chartered Bank

London

Jumlah pinjaman bank 146.750 3.485.087 103.000 1.785.444 Total bank loans

Biaya transaksi yang belum diamortisasi (25.432) (10.721)

Unamortized transaction costs

Akrual beban bunga 40.875 11.521 Accrued interest

Jumlah pinjaman Perusahaan 3.500.530 1.786.244 Total loans of the Company Entitas anak Subsidiaries

Pinjaman bank: Bank loans: Dolar AS US Dollar ING Bank N.V. 30.000 434.430 50.000 677.400 ING Bank N.V.

Jumlah pinjaman bank 30.000 434.430 50.000 677.400 Total bank loans Biaya transaksi yang belum

diamortisasi (1.161) (3.655) Unamortized transaction

costs Akrual beban bunga 4.120 5.424 Accrued interest Jumlah pinjaman entitas anak 437.389 679.169 Total loans of the subsidiaries

Jumlah pinjaman Grup 3.937.919 2.465.413 Total loans of the Group


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.

Eksh

ibit

E/4

0

Exhib

it E

/40

PT

SA

RA

TO

GA

IN

VEST

AM

A S

ED

AY

A T

bk.

DA

N E

NT

ITA

S A

NA

K

CA

TA

TA

N A

TA

S LA

PO

RA

N K

EU

AN

GA

N K

ON

SOLID

ASI

AN

T

AH

UN

BER

AK

HIR

31 D

ESE

MBER

2018 D

AN

2017

(LA

NJU

TA

N)

(

Din

yata

kan d

ala

m j

uta

an R

upia

h,

kecu

ali din

yata

kan

lain

)

PT

SA

RA

TO

GA

IN

VEST

AM

A S

ED

AY

A T

bk.

AN

D S

UBSI

DIA

RIE

S N

OT

ES

TO

TH

E C

ON

SOLI

DA

TED

FIN

AN

CIA

L ST

AT

EM

EN

TS

Y

EAR

S E

ND

ED

31 D

EC

EM

BER

2018 A

ND

2017

(C

ON

TIN

UE

D)

(E

xp

ress

ed i

n m

illi

ons

of

Rupia

h,

unle

ss o

therw

ise s

tate

d)

10.

PIN

JA

MA

N (

lanju

tan)

10.

BO

RR

OW

ING

S (c

onti

nued)

Ik

hti

sar

perj

anji

an p

inja

man b

ank (

lanju

tan):

Su

mm

ary

of b

ank

loan

s’ a

gree

men

t (c

onti

nued

):

Enti

tas/

En

tity

Bank

Tanggal

perj

anji

an/

Agre

emen

t da

te

Bata

s m

aksi

mum

kre

dit

/M

axim

um

cred

it li

mit

Jangka w

aktu

fasi

lita

s/Du

rati

on o

f fa

cilit

ies

Desk

ripsi

/De

scri

ptio

n

Peru

sahaan/

The

Com

pany

PT B

ank H

SBC Indonesi

a

11 S

epte

mber/

Sept

embe

r 2014

USD10.0

00.0

00

(yang t

ela

h

dit

ingkatk

an

menja

di

USD20.0

00.0

00

pada t

anggal 4

Febru

ari

2019/w

hich

has

be

en in

crea

sed

to

USD

20,0

00,0

00 o

n 4

Febr

uary

201

9)

Fasi

lita

s in

i te

rsedia

sela

ma s

atu

tahun s

eja

k t

anggal perj

anji

an

dit

andata

ngani pada t

anggal 11

Septe

mber

2014 d

an a

kan

dip

erp

anja

ng s

ecara

oto

mati

s u

ntu

k

peri

ode s

eti

ap 1

2 b

ula

n d

an a

kan

teru

s berl

aku h

ingga B

ank s

ecara

tert

ulis

mem

bata

lkan,

menghenti

kan,

ata

u m

em

bebask

an D

ebit

ur

dari

kew

aji

bannya s

esu

ai dengan

perj

anji

an,

jangka w

aktu

untu

k s

eti

ap

penari

kan p

inja

man a

dala

h 1

, 3 d

an

6 b

ula

n s

eja

k p

encair

an/Th

e fa

cili

ty

is a

vail

able

for

one

yea

r fr

om t

he

date

of

the

agre

emen

t si

gned

on

11

Sep

tem

ber

2014

and

sha

ll b

e au

tom

atic

ally

ext

ende

d fo

r ev

ery

12 m

onth

s pe

riod

and

sha

ll c

onti

nue

to b

e ap

plic

able

unt

il t

he B

ank

canc

el,

ceas

e, o

r di

scha

rge

in w

riti

ng

the

Borr

ower

fro

m it

s ob

liga

tion

s un

der

the

agre

emen

t, w

ith

max

imum

pe

riod

for

eac

h lo

an o

f 1,

3 a

nd 6

m

onth

s fr

om d

isbu

rsem

ent.

Fasi

lita

s re

volv

ing

pin

jam

an j

angka pendek/Re

volv

ing

shor

t te

rm

loan

fac

ility

. Tuju

an d

ari

pin

jam

an i

ni

adala

h u

ntu

k p

endanaan/Th

e pu

rpos

e of

th

is b

orro

win

g is

for

fin

anci

ng.

Pada

tanggal

31

Dese

mber

2018,

fasi

lita

s in

i dim

anfa

aatk

an

selu

ruhnya o

leh P

eru

sahaan /

On

31 D

ecem

ber

2018

, th

is f

acili

ty is

fu

lly

util

ized

by

the

Com

pany

.


Eksh

ibit

E/4

1

Exhib

it E

/41

PT

SA

RA

TO

GA

IN

VEST

AM

A S

ED

AY

A T

bk.

DA

N E

NT

ITA

S A

NA

K

CA

TA

TA

N A

TA

S LA

PO

RA

N K

EU

AN

GA

N K

ON

SOLID

ASI

AN

T

AH

UN

BER

AK

HIR

31 D

ESE

MBER

2018 D

AN

2017

(LA

NJU

TA

N)

(

Din

yata

kan d

ala

m j

uta

an R

upia

h,

kecu

ali din

yata

kan

lain

)

PT

SA

RA

TO

GA

IN

VEST

AM

A S

ED

AY

A T

bk.

AN

D S

UBSI

DIA

RIE

S N

OT

ES

TO

TH

E C

ON

SOLI

DA

TED

FIN

AN

CIA

L ST

AT

EM

EN

TS

Y

EAR

S E

ND

ED

31 D

EC

EM

BER

2018 A

ND

2017

(C

ON

TIN

UE

D)

(E

xp

ress

ed i

n m

illi

ons

of

Rupia

h,

unle

ss o

therw

ise s

tate

d)

10.

PIN

JA

MA

N (

lanju

tan)

10.

BO

RR

OW

ING

S (c

onti

nued)

Ik

htis

ar p

erja

njia

n pi

njam

an b

ank

(lan

juta

n):

Sum

mary

of

bank loans’

agre

em

ent

(conti

nued):

Enti

tas/

Enti

ty

Bank

Ta

ngga

l pe

rjan

jian

/ Agre

em

ent

date

Bata

s m

aksi

mum

kr

edit

/Maxim

um

cre

dit

lim

it

Jang

ka w

aktu

fas

ilita

s/Durati

on o

f fa

cil

itie

s De

skri

psi/

Desc

ripti

on

Peru

saha

an/

The

Com

pany

ING

Ban

k N

.V.

29 S

epte

mbe

r/

Septem

ber

2014

US

D40.

000.

000

5 ta

hun

sete

lah

pena

rika

n pi

njam

an

pert

ama

deng

an b

atas

wak

tu

pena

rika

n pi

njam

an s

ampa

i den

gan

tang

gal 2

0 Ju

li 20

17/

5 y

ears

aft

er t

he f

irst

uti

lizati

on

date

wit

h a

vail

abil

ity p

erio

d u

ntil

20 J

uly

2017.

Tuju

an d

ari

pinj

aman

ini

ada

lah

untu

k pe

ndan

aan/

The p

urp

ose

of

this

borr

ow

ing is

for

financin

g.

Fasi

litas

ini

sud

ah d

iman

faaa

tkan

sel

uruh

nya

oleh

Per

usah

aan

dan

nila

i yan

g te

rhut

ang

pada

tan

ggal

31

Dese

mbe

r 20

18 a

dala

h se

besa

r U

SD40

.000

.000

/This

facilit

y h

as

been f

ull

y u

tiliz

ed b

y t

he C

om

pany

and

the

outs

tandin

g

borr

ow

ing

as

of

31

Decem

ber

2018

is

USD40,0

00,0

00.

Pe

rusa

haan

/ The

Com

pany

Nati

xis

30 O

ktob

er/

Octo

ber

2014

US

D80.

000.

000

5 ta

hun

dan

3 bu

lan

sete

lah

pena

rika

n pi

njam

an/5

years

and

3 m

onth

s aft

er t

he u

tili

zati

on d

ate

.

Tuju

an d

ari

pinj

aman

ini

ada

lah

untu

k pe

ndan

aan/

The p

urp

ose

of

this

borr

ow

ing is

for

financin

g.

Fasi

litas

ini

sud

ah d

iman

faaa

tkan

sel

uruh

nya

oleh

Per

usah

aan

dan

nila

i yan

g te

rhut

ang

pada

tan

ggal

31

Dese

mbe

r 20

18 a

dala

h se

besa

r U

SD36

.750

.000

/This

facilit

y h

as

been f

ull

y u

tiliz

ed b

y t

he C

om

pany

and

the

outs

tandin

g

borr

ow

ing

as

of

31

Decem

ber

2018

is

USD36,7

50,0

00.

Peru

saha

an/

The

Com

pany

MU

FG B

ank,

Ltd

., J

akar

ta B

ranc

h

26

Sep

tem

ber/

Septem

ber

2016

Rp

400.

000

5 ta

hun

seja

k ta

ngga

l per

janj

ian/

5

years

from

the d

ate

of

the

agreem

ent.

Tuju

an d

ari

pinj

aman

ini

ada

lah

untu

k pe

mbi

ayaa

n ke

mba

li un

tuk

pinj

aman

ya

ng

suda

h ad

a di

Pe

rusa

haan

/The

purpose

of

this

borr

ow

ing is

for r

efi

nancin

g e

xis

ting l

oan f

acilit

y o

f th

e C

om

pany.

Fasi

litas

ini

sud

ah d

iman

faaa

tkan

sel

uruh

nya

oleh

Per

usah

aan

dan

nila

i yan

g te

rhut

ang

pada

tan

ggal

31

Dese

mbe

r 20

18 a

dala

h se

besa

r Rp

360.

000/

This

facil

ity h

as

been f

ull

y u

tili

zed b

y t

he C

om

pany a

nd

the o

uts

tandin

g b

orr

ow

ing a

s of

31 D

ecem

ber

2018 is

Rp360,0

00.

FINANCIAL REPORTS


Eksh

ibit

E/4

2

Exhib

it E

/42

PT

SA

RA

TO

GA

IN

VEST

AM

A S

ED

AY

A T

bk.

DA

N E

NT

ITA

S A

NA

K

CA

TA

TA

N A

TA

S LA

PO

RA

N K

EU

AN

GA

N K

ON

SOLID

ASI

AN

T

AH

UN

BER

AK

HIR

31 D

ESE

MBER

2018 D

AN

2017

(LA

NJU

TA

N)

(

Din

yata

kan d

ala

m j

uta

an R

upia

h,

kecu

ali din

yata

kan

lain

)

PT

SA

RA

TO

GA

IN

VEST

AM

A S

ED

AY

A T

bk.

AN

D S

UBSI

DIA

RIE

S N

OT

ES

TO

TH

E C

ON

SOLI

DA

TED

FIN

AN

CIA

L ST

AT

EM

EN

TS

Y

EAR

S E

ND

ED

31 D

EC

EM

BER

2018 A

ND

2017

(C

ON

TIN

UE

D)

(E

xp

ress

ed i

n m

illi

ons

of

Rupia

h,

unle

ss o

therw

ise s

tate

d)

10.

PIN

JA

MA

N (

lanju

tan)

10.

BO

RR

OW

ING

S (c

onti

nued)

Ik

htis

ar p

erja

njia

n pi

njam

an b

ank

(lan

juta

n):

Sum

mary

of

bank loans’

agre

em

ent (

conti

nued):

Enti

tas/

Enti

ty

Bank

Ta

ngga

l pe

rjan

jian

/ Agre

em

ent

date

Bata

s m

aksi

mum

kr

edit

/Maxim

um

credit

li

mit

Jang

ka w

aktu

fa

silit

as/D

ura

tion o

f fa

cil

itie

s De

skri

psi/

Desc

ripti

on

Peru

saha

an/

The C

om

pany

PT B

ank

DBS

Indo

nesi

a (“

DBS”

) 10

Okt

ober

/ O

ctober

2017

Rp

725.

000

5 ta

hun

seja

k pe

nari

kan

Pinj

aman

per

tam

a/ 5

years

from

the f

irst

uti

lisa

tion

date

.

Tuju

an d

ari

pinj

aman

ini

ada

lah

untu

k m

emba

yar

kem

bali

Pinj

aman

ya

ng j

atuh

tem

po s

erta

pen

dana

an u

ntuk

bia

ya d

an p

enge

luar

an y

ang

terk

ait

deng

an t

ujua

n te

rseb

ut/T

he p

urp

ose

of

that

borr

ow

ing is

for

managin

g

the

Com

pany’s

lo

an

maturi

ty

profi

le

and

financin

g/re

financin

g p

aym

ent

of

all

fees

and e

xpense

s in

rela

tion t

o

the a

bove p

urpose

s.

Fasi

litas

ini

sud

ah d

iman

faaa

tkan

sel

uruh

nya

oleh

Per

usah

aan

dan

nila

i ya

ng t

erhu

tang

pad

a ta

ngga

l 31

Des

embe

r 20

18 a

dala

h se

besa

r Rp

725.

000/

This

facil

ity h

as

been f

ull

y u

tili

zed b

y t

he C

om

pany a

nd

the o

uts

tandin

g b

orr

ow

ing a

s of

31 D

ecem

ber

2018 i

s Rp725,0

00.

Peru

saha

an/

the C

om

pany

PT B

ank

DBS

Indo

nesi

a (“

DBS”

) 16

Okt

ober

/ O

ctober

2017

Rp

370.

000

dan/

and

U

SD35

.000

.000

(b

atas

mak

sim

um k

redi

t in

i be

rgan

tung

pad

a ju

mla

h de

posi

to y

ang

ters

edia

di

anak

per

usah

aan

pada

saa

t pe

ncai

ran

Pinj

aman

/ th

e

maxim

um

lim

it o

f th

is

cre

dit

depends

on t

he

am

ount

of

deposi

ts

avail

able

in t

he s

ubsi

dia

ry

upon d

isburs

em

ent

of

the

Loan)

1 ta

hun

seja

k ta

ngga

l pe

rjan

jian

/1 y

ear

from

the

date

of

the a

greem

ent.

Pinj

aman

ini t

elah

di

perp

anja

ng d

an a

kan

bera

khir

pad

a ta

ngga

l 16

Okt

ober

201

9/th

is f

acil

ity

has

been e

xte

nded a

nd w

ill

expir

e o

n 1

6 O

cto

ber 2

019.

Tuju

an d

ari p

inja

man

ini a

dala

h un

tuk

pend

anaa

n/the p

urp

ose

of

this

borr

ow

ing is

for

financin

g.

Pada

tan

ggal

31

Dese

mbe

r 20

18,

Peru

saha

an t

idak

mem

iliki

sal

do

teru

tang

ata

s fa

silit

as in

i/A

s of

31 D

ecem

ber

2018,

the C

om

pany h

as

no o

uts

tandin

g b

ala

nce o

n t

his

facil

ity.


Eksh

ibit

E/4

3

Exhib

it E

/43

PT

SA

RA

TO

GA

IN

VEST

AM

A S

ED

AY

A T

bk.

DA

N E

NT

ITA

S A

NA

K

CA

TA

TA

N A

TA

S LA

PO

RA

N K

EU

AN

GA

N K

ON

SOLID

ASI

AN

T

AH

UN

BER

AK

HIR

31 D

ESE

MBER

2018 D

AN

2017

(LA

NJU

TA

N)

(

Din

yata

kan d

ala

m j

uta

an R

upia

h,

kecu

ali din

yata

kan

lain

)

PT

SA

RA

TO

GA

IN

VEST

AM

A S

ED

AY

A T

bk.

AN

D S

UBSI

DIA

RIE

S N

OT

ES

TO

TH

E C

ON

SOLI

DA

TED

FIN

AN

CIA

L ST

AT

EM

EN

TS

Y

EAR

S E

ND

ED

31 D

EC

EM

BER

2018 A

ND

2017

(C

ON

TIN

UE

D)

(E

xp

ress

ed i

n m

illi

ons

of

Rupia

h,

unle

ss o

therw

ise s

tate

d)

10.

PIN

JA

MA

N (

lanju

tan)

10.

BO

RR

OW

ING

S (c

onti

nued)

Ik

htis

ar p

erja

njia

n pi

njam

an b

ank

(lan

juta

n):

Sum

mar

y of

ban

k lo

ans’

agre

emen

t (c

onti

nued

):

En

tita

s/En

tity

Ba

nk

Tang

gal

perj

anji

an/

Agre

emen

t da

te

Bata

s m

aksi

mum

kr

edit

/Max

imum

cr

edit

lim

it

Jang

ka w

aktu

fas

ilita

s/D

urat

ion

of

faci

litie

s De

skri

psi/

Des

crip

tion

Peru

saha

an/

the

Com

pany

MU

FG B

ank,

Ltd

., J

akar

ta

Bran

ch

29 M

aret

/ M

arch

20

18

USD3

7.50

0.00

0 (y

ang

dapa

t di

tari

k da

lam

USD

at

au

Rupi

ah/w

hich

can

be

dra

wdo

wn

in

USD

or

Rupi

ah)

29 M

aret

/Mar

ch 2

023

Tuju

an

dari

pi

njam

an

ini

adal

ah

untu

k pe

mbi

ayaa

n ke

mba

li at

as

Fasi

litas

Pin

jam

an y

ang

suda

h ad

a, u

ntuk

inve

stas

i dan

unt

uk m

emen

uhi

kebu

tuha

n m

odal

dar

i ana

k pe

rusa

haan

/The

pur

pose

of

this

bor

row

ing

is f

or r

efin

anci

ng e

xist

ing

loan

fac

iliti

es,

inve

stm

ents

and

mee

t an

y ca

pita

l dem

and

from

any

of

the

Com

pany

’s s

ubsi

diar

ies.

Pa

da

tang

gal

31

Dese

mbe

r 20

18,

Peru

saha

an

tela

h m

eman

faat

kan

fasi

litas

ter

sebu

t se

besa

r Rp

275.

000/

As o

f 31

Dec

embe

r 20

18,

the

Com

pany

has

uti

lized

thi

s fa

cilit

y am

ount

ing

to R

p275

,000

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FINANCIAL REPORTS


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ole

h Pe

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t le

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mounts

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rusa

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mem

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ain

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ark

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o u

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ebt

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of

tw

o (

2)

tim

es.










11. OBLIGASI TUKAR 11. EXCHANGEABLE BONDS

Pada tanggal 26 Mei 2015, Perusahaan, melalui entitas anaknya Delta Investment Horizon International Ltd. (‘Penerbit’) menerbitkan obligasi berjangka waktu lima tahun yang dapat ditukar dengan saham yang dimiliki Grup atas PT Tower Bersama Infrastructure Tbk. (“TBIG”). Persyaratan dan ketentuan dari obligasi yang dapat ditukar adalah sebagai berikut:

On 26 May 2015, the Company, through its subsidiary, Delta Investment Horizon International Ltd. (the ‘Issuer’) issued five-year bonds which are exchangeable to shares held by the Group in PT Tower Bersama Infrastructure Tbk. (“TBIG”). The terms and conditions of the exchangeable bonds are summarized as follows:

a) Jenis obligasi

Terdaftar di luar negeri – SGX, dijamin, obligasi dapat ditukar/Registered overseas – SGX, guaranteed, exchangeable bonds

a) Type of bonds

b) Nilai nominal obligasi

USD100.000.000 (setelah pembelian kembali obligasi tukar serta penukaran lebih awal dengan opsi jual oleh pemegang obligasi, pada

tanggal 31 Desember 2018, seluruh obligasi telah lunas dibayar/subsequent to buy back exchangeable bonds and early

redemption through put option by bondholders, as of 31 December 2018, all of the bonds were fully repaid)

b) Total face value of bonds

c) Tingkat suku bunga obligasi: c) Bond Interest rate:

Kupon 3% per tahun, terutang setiap tanggal 26 Mei dan 26 Nopember/ 3% per year, payable semi annually on 26 May and 26 November Coupon rate

Yield to maturity 3,75% per tahun/per year Yield to maturity d) Tanggal jatuh

tempo 26 Mei/May 2020 d) Date of bond maturity

5 tahun, dengan opsi jual di tahun ketiga/

5 years, with put option at third year e) Jumlah jatuh

tempo 103,8139% dari nilai pokok/of principal amount e) Maturity amount

f) Metode penukaran obligasi

Penukaran pada tanggal jatuh tempo/Redemption on maturity date:

Penukaran secara sekaligus pada saat jatuh tempo untuk jumlah pokok obligasi dimana kondisi belum terjadi dan hak pertukaran belum digunakan/ Redemption in a lump sum on the maturity date for the principal amount of bonds for which a condition has not occurred and the exchange right has not been exercised.

Penukaran lebih awal/ Early redemption: Penerbit memiliki call option, sedangkan pemegang obligasi memiliki put option/ the issuer has a call option, whereas the bondholders have a put option.

Penukaran lebih awal dapat dilakukan berdasarkan tabel berikut ini (tabel ini disajikan dengan mengacu kepada nilai nominal obligasi sebesar USD100.000 per lembar)/Early redemption can be done based on the table set out below (this table is presented with reference to the value of the bonds for each USD100,000 principal amount):

26 Nopember/November 2015 USD100.375,00 26 Mei/May 2016 USD100.751,41 26 Nopember/November 2016 USD101.129,22 26 Mei/May 2017 USD101.508,46 26 Nopember/November 2017 USD101.889,12 26 Mei/May 2018 USD102.271,20 26 Nopember/November 2018 USD102.654,72 26 Mei/May 2019 USD103.039,67 26 Nopember/November 2019 USD103.426,07

f) Principal redemption method

FINANCIAL REPORTS









11. OBLIGASI TUKAR (lanjutan) 11. EXCHANGEABLE BONDS (continued)

g) Put option oleh pemegang obligasi

Put option dapat diambil, jika salah satu kondisi di bawah ini terjadi/The put option can be exercized if any of the following conditions occur: i. Pada tahun ketiga dari tanggal pembayaran (26 Mei 2018)/ On

the third anniversary of the date of payment (26 May 2018). ii. Jika ada perubahan pengendalian terjadi di SIS/if any change

of control occurs in SIS. iii. Terjadi delisting saham TBIG dari bursa saham atau transaksi

mereka ditangguhkan selama 30 hari perdagangan/TBIG shares are delisted from the stock exchange or their transaction is suspended for 30 trading days.

g) Put option by bondholders

h) Call option oleh penerbit

Call option dapat dilakukan jika salah satu dari kondisi berikut terjadi/The call option can be exercized if any of the following conditions occurs: i. Pada atau setelah tanggal 16 Juni 2018 jika harga penutupan

TBIG selama 20 hari transaksi dalam 30 hari berturut-turut mencapai 130% atau lebih dari harga pertukaran antara 3 tahun dari tanggal penerbitan - 26 Mei 2015 dan 30 hari kerja untuk tanggal jatuh tempo/On or after 16 June 2018 if the closing price of TBIG for 20 transactional days in 30 consecutive transactional days reaches 130% or more of the exchange price between 3 years from the issuance date – 26 May 2015 and 30 business days to the maturity date.

ii. Jika saldo obligasi yang belum ditebus mencapai kurang dari 10% dari jumlah total yang dikeluarkan (clean up call)/if the balance of bonds that has not been redeemed reaches less than 10% of the sum of the total issued amount (clean up call).

h) Call option by the issuer

i) Hal-hal lain sehubungan dengan penukaran:

i) Other matters relating to exchange:

- Rasio tukar 100% - Exchange ratio - Nilai tukar (harga

saham TBIG per lembar) Rp10.707

- Exchange price (TBIG price per

shares - Jenis saham yang

akan ditukar Saham biasa/Common shares

PT Tower Bersama Infrastructure Tbk. - Type of shares to

be exchanged - Periode untuk

mengajukan pertukaran

Tanggal mulai/start date: 26 Juli/July 2015 Tanggal akhir/end date: 19 Mei/May 2020

- Period to apply for exchange

- Perihal mengenai penyesuaian harga pertukaran

Ketika kondisi untuk penyesuaian harga pertukaran terpenuhi, misalnya dividen saham, maka harga pertukaran akan

disesuaikan dengan provisi yang telah dibuat sehubungan dengan perjanjian obligasi yang terkait/When a condition for

re-adjustment of the exchange price has occurred, such as a stock dividend, the exchange price will be adjusted in

accordance with the provisions in the relevant bonds purchase agreement.

- Matters for the adjustment of

exchange price

Perusahaan bertindak sebagai guarantor atas penerbitan obligasi tukar ini.

The Company acts as guarantor in relation with the issuance of the exchangeable bonds.

Obligasi tukar adalah instrumen campuran yang mengandung satu atau lebih derivatif melekat. Grup telah memilih untuk menetapkan obligasi tukar sebagai liabilitas keuangan yang diukur pada nilai wajar melalui laba rugi, pada saat pengakuan awal dan selanjutnya.

The exchangeable bonds are hybrid instruments which contain one or more embedded derivatives. The Group has elected to designate the exchangeable bonds as financial liabilities measured at fair value through profit or loss on initial recognition and subsequent measurement.











Sampai 31 Desember 2017, Grup telah melakukan pembelian kembali obligasi tukar dengan total harga pembelian sebesar USD29.074.500 untuk nominal obligasi sebesar USD31.300.000.

Up to 31 December 2017, the Group has bought back exchangeable bonds with a total purchase price of USD29,074,500 for the nominal value of the bond of USD31,300,000.

Pada tahun 2018, Grup telah melakukan penyelesaian seluruh obligasi tukar yang tersisa dengan total nilai pembayaran sebesar USD70.247.273 untuk nominal obligasi sebesar USD68.700.000. Pada tanggal 31 Desember 2018 tidak terdapat obligasi tukar yang masih terhutang.

In 2018, the Group has settled all of the remaining exchangeable bonds with a total payment value of USD70,247,273 for the nominal value of the bond amounting to USD68,700,000. As of 31 December 2018, no exchangeable bonds were outstanding.

Nilai wajar dari obligasi tukar pada tanggal 31 Desember 2017 adalah sebesar USD70.758.668 (setara dengan Rp958.639). Nilai wajar obligasi diukur menggunakan model berikut (nilai wajar level 2):

The fair value of the exchangeable bonds as of 31 Desember 2017 was USD70,758,668 (equivalent to Rp958,639). The fair value of the bonds is measured using the following model (fair value level 2):

1) Penilaian komponen derivatif melekat

Grup menggunakan model Binomial Tree untuk memproyeksikan pergerakan harga saham TBIG, dan menghitung nilai lnstrumen melalui metode iterasi mundur. Dalam model tersebut, nilai lnstrumen tersebut dihitung sebagai jumlah dari nilai ekuitas dan nilai utang, di mana nilai Ekuitas diukur dari kenaikan nilai saham yang dikonversi dan nilai utang diukur dari nilai pokok dan bunga, termasuk pelunasan awal, jika obligasi tidak dikonversi. Jumlah kedua nilai ekuitas dan nilai utang akan menjadi nilai wajar seluruh instrumen. Oleh karena itu nilai komponen derivatif melekat adalah perbedaan antara total nilai instrumen dan komponen utang yang dibahas di bawah. Dalam model tersebut, Grup berasumsi bahwa jika pemegang obligasi memutuskan untuk melaksanakan opsi konversi, seluruh saham yang dapat dikonversi akan ditukarkan.

1) Valuation of embedded derivative component The Group used a Binomial Tree model to project the stock price paths of TBIG, and computing the Instrument value through a backward iteration method. In the model, the value of the Instrument is computed as the sum of equity value and debt value, where equity value measures the upside value of converted stock and debt value measures the value of the principal and interest, including any early redemption, if not converted. The sum of both the equity value and the debt value would be the fair value of the entire instrument. The embedded derivative component is therefore the difference between the Instrument value and the debt component as to be discussed below. In the model, the Group assumes that if bondholder decides to exercise the Conversion option, all of the exchangeable shares would be exercised.

2) Penilaian komponen utang

Grup telah menggunakan pendekatan arus kas terdiskonto untuk menilai komponen utang. Grup memperkirakan arus kas yang diharapkan di masa depan berdasarkan persyaratan kontrak. Tingkat diskonto yang digunakan didasarkan pada suku bunga bebas resiko dan resiko kredit yang sesuai.

2) Valuation of debt component The Group has used the discounted cash flow approach to value the debt component. The Group estimates the expected future cash flows based on the contractual terms. The discount rate used is estimated based on the appropriate risk free rate and credit spread.

FINANCIAL REPORTS











Asumsi dan input yang digunakan dalam teknik penilaian termasuk harga saham TBIG, volatilitas harga, imbal hasil dividen, suku bunga bebas resiko, resiko kredit dan forward kurs valuta asing (USD-IDR).

Assumptions and inputs used in the valuation techniques include share price of TBIG, volatility price, dividend yield, risk free rate, credit spread and USD-IDR foreign exchange forward rate.

Kontrak opsi mata uang asing Foreign currency option contracts

Pada tanggal 19 September 2017, Perusahaan telah melakukan kontrak opsi mata uang asing dengan Natixis untuk melakukan lindung nilai terhadap risiko arus kas dari fluktuasi nilai tukar USD/IDR pada saat pembayaran pokok obligasi tukar (Catatan 8). Pada tanggal 31 Desember 2018, kontrak opsi ini telah berakhir.

On 19 September 2017, The Company has entered into a foreign currency option contract with Natixis to hedge changes in cash flow risks arising from fluctuations in the USD/IDR exchange rate upon repayment of the principal of the exchangeable bonds (Note 8). As of 31 December 2018, this contract has ended.

Equity share swap (aset keuangan yang diukur pada nilai wajar melalui laba rugi)

Equity share swap (financial asset measured at fair value through profit or loss)

Sehubungan dengan penerbitan obligasi tukar yang dijelaskan di atas, pada tanggal 21 Mei 2015, Delta Investment Horizon International Ltd. ("entitas anak") menandatangani perjanjian Equity Share Swap ("Perjanjian") dengan Standard Chartered Bank, Singapura (SCB). Berdasarkan perjanjian tersebut, entitas anak setuju untuk membayar dimuka kepada SCB sebesar USD18.800.000 untuk penyelesaian di masa yang akan datang oleh SCB kepada entitas anak sebanyak 26.703.100 lembar saham di PT Tower Bersama Infrastructure Tbk. ("TBIG").

In relation to the issuance of exchangeable bonds as discussed above, on 21 May 2015, Delta Investment Horizon International Ltd. (“subsidiary”) entered into Equity Share Swap agreement (“Agreement”) with Standard Chartered Bank, Singapore (SCB). Under the agreement, the subsidiary agreed to initially pay SCB USD18,800,000 for a future delivery, by SCB to the subsidiary, a fixed number of shares of 26,703,100 shares in PT Tower Bersama Infrastructure Tbk. (“TBIG”).

Penyelesaian tersebut dapat dilakukan setiap saat sebelum 26 Mei 2018. Metode penyelesaian yang utama adalah melalui penyerahan berupa fisik saham, meskipun entitas anak juga dapat memilih penyelesaian sebagian secara tunai dan sebagian secara fisik saham dengan cara pemberitahuan lebih dahulu. Jika penyelesaian secara tunai yang dipilih, maka nilai tunai dihitung berdasarkan penilaian saham TBIG pada tanggal penyelesaian. Penyelesaian secara tunai adalah dalam dolar AS. Entitas anak juga menerima bunga sebesar 0,5% atas jumlah yang belum dilunasi.

The settlement can be done anytime prior to 26 May 2018. The default settlement method is through physical settlement, although the subsidiary, may in giving notice, elect partial cash settlement and partial physical settlement. If cash settlement is elected, the cash to be settled is based on the valuation of TBIG share at the settlement date. Any cash settlement is in USD. The subsidiary also receives interest at a rate of 0.5% on any outstanding amount.

Grup telah memilih untuk menetapkan kontrak instrumen campuran ini sebagai aset keuangan yang diukur pada nilai wajar melalui laba rugi pada saat pengakuan awal dan selanjutnya. Nilai wajar dari equity swap pada tanggal 31 Desember 2017 sebesar Rp54.792 untuk 8.522.000 saham, yang dihitung terutama berdasarkan harga penutupan saham TBIG (nilai wajar level 2).

Pada tanggal 31 Desember 2018, seluruh Equity Share Swap telah selesai dengan penyerahan saham TBIG sebagai metode penyelesaian.

The Group had elected to designate this hybrid instrument contract as a financial asset measured at fair value through profit or loss on initial recognition and subsequent measurement. The fair value of the equity swap as of 31 December 2017 amounting to Rp54,792 of 8,522,000 shares, which is mainly based on TBIG closing share price (fair value level 2). As of 31 December 2018, all of the Equity Share Swap has been settled with the receipt of TBIG shares as settlement method.









12. MODAL SAHAM 12. SHARE CAPITAL

Susunan pemegang saham Perusahaan dan kepemilikannya masing-masing pada tanggal 31 Desember 2018 dan 2017 adalah sebagai berikut:

The composition of the shareholders of the Company and

their respective ownership interests as of

31 December 2018 and 2017 are as follows:

31 Desember/December 2018 Ditempatkan dan disetor penuh/ Issued and fully paid-up Persentase kepemilikan/ Saham/ Percentage Jumlah/

Shares of ownership Amount

PT Unitras Pertama 859.500.000 31,6812 85.950 PT Unitras Pertama

Edwin Soeryadjaya 842.218.571 31,0442 84.222 Edwin Soeryadjaya

Sandiaga S. Uno 613.765.429 22,6234 61.377 Sandiaga S. Uno

Michael W.P. Soeryadjaya 168.600 0,0062 17 Michael W.P. Soeryadjaya

Andi Esfandiari 363.000 0,0134 36 Andi Esfandiari

Masyarakat 396.032.900 14,5977 39.603 Public

2.712.048.500 99,9661 271.205Saham treasuri 918.500 0,0339 92 Treasury stock

2.712.967.000 100,0000 271.297

31 Desember/December 2017 Ditempatkan dan disetor penuh/ Issued and fully paid-up Persentase kepemilikan/ Saham/ Percentage Jumlah/

Shares of ownership Amount

PT Unitras Pertama 885.000.000 32,6211 88.500 PT Unitras Pertama

Edwin Soeryadjaya 842.218.571 31,0442 84.222 Edwin Soeryadjaya

Sandiaga S. Uno 754.115.429 27,7967 75.412 Sandiaga S. Uno

Michael W.P. Soeryadjaya 71.200 0,0026 7 Michael W.P. Soeryadjaya

Andi Esfandiari 100.900 0,0037 10 Andi Esfandiari

Ngo Jerry Go 613.100 0,0226 61 Ngo Jerry Go

Masyarakat 229.556.700 8,4615 22.956 Public

2.711.675.900 99.9524 271.168Saham treasuri 1.291.100 0,0476 129 Treasury stock

2.712.967.000 100,0000 271.297

Undang-Undang Perseroan Terbatas Republik Indonesia mengharuskan pembentukan cadangan umum dari laba bersih sejumlah minimal 20% dari jumlah modal yang ditempatkan dan disetor penuh. Cadangan umum ini disajikan sebagai saldo laba dicadangkan pada laporan posisi keuangan konsolidasian. Tidak ada batasan waktu untuk membentuk cadangan tersebut. Berdasarkan Rapat Umum Pemegang Saham Tahunan tanggal 26 April 2017, pemegang saham menetapkan cadangan umum sebesar Rp 5.000 dari laba tahun 2016.

The Limited Liability Company Law of the Republic of

Indonesia requires the establishment of a general

reserve from net income amounting to at least 20% of

the Company’s issued and paid up capital. This general

reserve is disclosed as appropriated retained earnings in

the consolidated statement of financial position. There

is no time limit on the establishment of the reserve.

Based on the Annual General Shareholders Meeting

dated 26 April 2017, the shareholders approved to

appropriate Rp 5,000 of the statutory reserve from

earnings in 2016.

Berdasarkan Rapat Umum Pemegang Saham Tahunan tanggal 26 Juni 2018, pemegang saham menetapkan cadangan umum sebesar Rp 5.000 dari laba tahun 2017.

Based on the Annual General Shareholders Meeting

dated 26 June 2018, the shareholders approved to

appropriate Rp 5,000 of the statutory reserve from

earnings in 2017.

FINANCIAL REPORTS










12. MODAL SAHAM (lanjutan) 12. SHARE CAPITAL (continued)

Saham Treasuri Treasury Stock

Selama tahun 2017, Perusahaan melakukan pembelian kembali sebagian saham yang diperdagangkan di Bursa Efek Indonesia sebagaimana diperkenankan sesuai Peraturan Bapepam-LK No. XI.B.2 tentang “Pembelian Kembali Saham yang Dikeluarkan oleh Emiten atau Perusahaan Publik”, Lampiran Keputusan Ketua Bapepam-LK No. Kep-105/BL/2010 tanggal 13 April 2010 sebagaimana telah disetujui oleh pemegang saham Perusahaan dalam Rapat Umum Pemegang Saham Luar Biasa tanggal 26 April 2017 berdasarkan Akta Berita Acara Rapat Umum Pemegang Saham Luar Biasa PT Saratoga Investama Sedaya Tbk. No. 112 tanggal 26 April 2017, dibuat oleh Jose Dima Satria, S.H., M.Kn., Notaris di Jakarta Selatan. Pembelian kembali tersebut terhitung sejak persetujuan rapat ini hingga Rapat Umum Pemegang Saham Tahunan Perusahaan yang akan diadakan pada tahun 2018. Selama tahun 2017, Perusahaan telah melakukan pembelian kembali sebanyak 626.600 saham dengan jumlah nilai pembelian sebesar Rp2.057. Selain itu, selama tahun 2017 Perusahaan juga telah 3 (tiga) kali membagikan saham kepada karyawan Perusahaan sehubungan dengan Program Insentif Jangka Panjang Perusahaan sebanyak 1.795.100 saham dengan jumlah nilai distribusi sebesar Rp6.040. Dengan demikian, per tanggal 31 Desember 2017, jumlah saham treasuri Perusahaan adalah sebanyak 1.291.100 saham (Rp5.406).

During 2017, the Company bought back a portion of

shares which are publicly traded in the Indonesia Stock

Exchange, as allowed by Bapepam-LK Regulation No.

XI.B.2 regarding “Buy Back of Shares Issued by the

Issuer or Public Company”, Attachment of the Decree

of Chairman of Bapepam-LK No. Kep-105/BL/2010 on

13 April 2010 as approved by the shareholders of the

Company in the Extraordinary General Meeting of

Shareholders on 26 April 2017 pursuant to Deed of

Minutes of Extraordinary General Meeting of

Shareholders of PT Saratoga Investama Sedaya Tbk.

No. 112 dated 26 April 2017, made by Jose Dima

Satria, S.H., M.Kn., Notary in South Jakarta. The buy-

back was executed from the date of the meeting

resolutions until the Annual General Meeting of

Shareholders which will be held in 2018. During 2017,

the Company bought back 626,600 shares for a total

purchase price of Rp2,057. In addition, during 2017

the Company has also distributed shares 3 (three)

times to its employees with regards to the

implementation of Long Term Incentive Program of

1,795,100 shares for a total distribution price of

Rp6,040. Therefore, as of 31 December 2017, the

Company’s treasury shares were amounting to

1,291,100 (Rp5,406).

Selama tahun 2018, Perusahaan telah melakukan pembelian kembali sebanyak 1.716.300 saham dengan jumlah nilai pembelian sebesar Rp6.549. Selain itu, Perusahaan juga telah membagikan 2.088.900 saham kepada karyawan Perusahaan sehubungan dengan Program Insentif Jangka Panjang Perusahaan dengan jumlah nilai distribusi sebesar Rp7.971. Dengan demikian, per tanggal 31 Desember 2018, jumlah saham treasuri Perusahaan adalah sebanyak 918.500 saham (Rp3.984).

During 2018, the Company bought back 1,716,300

shares for a total purchase price of Rp6,549. In

addition, the Company has also distributed 2,088,900

shares to its employees with regards to the

implementation of Long Term Incentive Program for a

total distribution price of Rp7,971. Therefore, as of

31 December 2018, the Company’s treasury shares

were amounting to 918,500 shares (Rp3,984).

Pembagian kepada Pemegang Saham Distribution to Shareholders

Pada tanggal 26 Mei 2017, Perusahaan membagikan dividen tunai sebesar Rp235.800 (Rp87 (Rupiah penuh) per saham). Pembagian ini berdasarkan keputusan rapat umum pemegang saham tanggal 26 April 2017.

On 26 May 2017, the Company distributed cash

dividends amounting to Rp235,800 (Rp87 (whole

Rupiah) per share). The distribution was based on

decision of the annual general shareholder’s meeting

on 26 April 2017.

Pada rapat umum pemegang saham tahunan tanggal 26 Juni 2018, Perusahaan mengumumkan pembagian dividen tunai senilai Rp200.759 (Rp74 (Rupiah penuh) per saham) yang dibagikan pada tanggal 27 Juli 2018.

At the annual general shareholder’s meeting on

26 June 2018, the Company declared a distribution of

cash dividends amounting to Rp200,759 (Rp74 (whole

Rupiah) per share) which was distributed on 27 July

2018.










13. TAMBAHAN MODAL DISETOR 13. ADDITIONAL PAID-IN CAPITAL

Merupakan agio saham pada tanggal 31 Desember 2018 dan 2017 yang timbul dari transaksi berikut:

Represents additional paid-in capital as of 31 December 2018 and 2017 which was derived from the following transactions:

31 Desember/


December 2017

Setoran modal saham 73.729 73.729 Share capital paymentsPenawaran umum saham perdana 1.465.004 1.465.004 Initial public offeringBiaya penerbitan saham (69.035) (69.035) Share issuance costsAmnesti pajak 86.828 86.798 Tax amnesty Restructuring transactions between Restrukturisasi entitas sepengendali 3.628.493 3.628.493 entities under common control

5.185.019 5.184.989

Tambahan modal disetor dari amnesti pajak berasal dari aset (yaitu kas dan properti) yang diungkapkan oleh Grup selama program amnesti pajak.

Additional paid-in capital from tax amnesty derived from assets (i.e. cash and properties) declared by the Group during the tax amnesty program.

14. KEPENTINGAN NONPENGENDALI 14. NON-CONTROLLING INTERESTS

Rincian bagian kepentingan nonpengendali atas ekuitas entitas anak yang dikonsolidasi adalah sebagai berikut:

The detail of non-controlling interests’ share in equity of the consolidated subsidiaries are as follows:

31 Desember/


December 2017

Saldo awal 254.353 382.203 Beginning balanceBagian atas laba (rugi) komprehensif 59.761 (112.387) Share in comprehensive income (loss)Pembagian dividen untuk kepentingan Dividend distribution for non-controlling

nonpengendali (226 ) (296) interests Perubahan bagian kepemilikan di

entitas anak (5.108 ) (15.167 )

Changes in ownership interest in subsidiaries

308.780 254.353

WBSM TKJ SA

Entitas anak lainnya dengan

kepentingan nonpengendali

tidak material/Other

subsidiaries with immaterial non-

controlling interest Jumlah/Total

31 Desember 2018: 31 December 2018:Persentase pemilikan

kepentingan nonpengendali 26,32% 13,51% 40,00%

Non-controlling interest’spercentage of ownership

Aset lancar 926 2.027.485 1.362 Current assetsAset tidak lancar 167.572 - - Non-current assetsLiabilitas jangka pendek (33.399) (221.912) - Current liabilitiesAset neto yang

diatribusikan kepada pemilik perusahaan 135.099 1.805.573 1.362

Net assets attributable to owners of the Company

Aset neto milik

kepentingan nonpengendali 35.558 243.933 545 28.744 308.780

Net assets attributable tonon-controlling interest

FINANCIAL REPORTS










14. KEPENTINGAN NONPENGENDALI (lanjutan) 14. NON-CONTROLLING INTERESTS (continued)

WBSM TKJ SA

Entitas anak lainnya

dengan kepentingan

nonpengendali tidak

material/Other subsidiaries with immaterial non-

controlling interest Jumlah/Total

31 Desember 2017: 31 December 2017:Persentase pemilikan

kepentingan

nonpengendali 26,32% 13,51% 40,00% Non-controlling interest’s

percentage of ownership Aset lancar 1.038 391 1.377 Current assetsAset tidak lancar 210.778 1.259.476 - Non-current assetsLiabilitas jangka pendek (44.185) - (38) Current liabilitiesAset neto yang

diatribusikan kepada

pemilik perusahaan 167.631 1.259.867 1.339 Net assets attributable to

owners of the Company Aset neto milik

kepentingan

nonpengendali 44.120 170.208 536 39.489 254.353 Net assets attributable to

non-controlling interest 15. PENGHASILAN 15. INCOME

a. Keuntungan (kerugian) bersih atas investasi pada efek ekuitas

a. Net gain (loss) on investments in equity securities

31 Desember/

December 2018

31 Desember/

December 2017 *

Infrastruktur Infrastructure

PT Tower Bersama Infrastructure Tbk. (4.212.845 ) 2.127.804 PT Tower Bersama Infrastructure Tbk.

Seroja Investment Limited (10.770 ) (14.626 ) Seroja Investment Limited PT Nusa Raya Cipta Tbk. 1.043 8.696 PT Nusa Raya Cipta Tbk. Lainnya (126.193 ) (45.574 ) Others

Jumlah – Infrastruktur (4.348.765 ) 2.076.300 Total - Infrastructure Sumber daya alam Natural resources

PT Adaro Strategic Capital (1.697.001 ) 431.824 PT Adaro Strategic Capital PT Merdeka Copper Gold Tbk. 1.129.639 105.475 PT Merdeka Copper Gold Tbk. PT Adaro Strategic Lestari (676.465 ) 172.131 PT Adaro Strategic Lestari PT Adaro Energy Tbk. (767.433 ) (125.272 ) PT Adaro Energy Tbk. Sumatra Copper & Gold Plc (220.802 ) 21.754 Sumatra Copper & Gold Plc PT Provident Agro Tbk. (217.254 ) (404.642 ) PT Provident Agro Tbk. Interra Resources Ltd. (23.776 ) (6.225 ) Interra Resources Ltd. Sihayo Gold Plc. 11.419 4.767 Sihayo Gold Plc. Lainnya (310.612 ) (105.153 ) Others

`

Jumlah – Sumber daya alam (2.772.285 ) 94.659 Total – Natural resources Produk konsumen Consumer products

PT Mitra Pinasthika Mustika Tbk. (141.035

) 325.466 PT Mitra Pinasthika Mustika Tbk.

PT Aneka Gas Industri Tbk. (10.789 ) 51 PT Aneka Gas Industri Tbk. Lainnya (5.492 ) (120.521 ) Others

Jumlah – Produk konsumen (157.316 ) 204.996 Total – Consumer products

Lainnya 27.115 (19.429 ) Others

Jumlah (7.251.251 ) 2.356.526 Total










15. PENGHASILAN (lanjutan) 15. INCOME (continued)

b. Penghasilan dividen, bunga dan investasi lainnya b. Dividend, interest and other investment income



Dividen 899.548 882.463 DividendPendapatan investasi lainnya 188.593 619.595 Other investment incomePendapatan bunga 58.467 37.385 Interest income

1.146.608 1.539.443

16. BEBAN USAHA 16. OPERATING EXPENSES



Gaji karyawan dan kompensasi

lainnya

92.860 111.091 Employees’ salaries and

other compensation Jasa profesional 21.989 77.406 Professional fees Sewa 8.884 10.485 Rental Kantor 8.330 4.144 Office Perjalanan 1.883 1.636 Travelling Penyusutan aset tetap 1.045 1.360 Depreciation of fixed assets Lainnya 3.396 6.595 Others 138.387 212.717

17. (RUGI) LABA PER SAHAM 17. (LOSS) EARNINGS PER SHARE

a. (Rugi) Laba per saham dasar a. Basic (loss) earnings per share

(Rugi) laba per saham dasar dihitung dengan cara membagi (rugi) laba neto yang dapat diatribusikan kepada pemilik Perusahaan dengan rata-rata tertimbang saham biasa yang beredar pada tahun berjalan.

Basic (loss) earnings per share is calculated by dividing net (loss) profit attributable to owners of the Company by the weighted average of ordinary shares outstanding during the year.

31 Desember/


December 2017*

(Rugi) laba neto yang dapat diatribusikan kepada pemilik Perusahaan

(6.194.577) 3.274.027

Net (loss) profit attributable to owners of the Company

Rata-rata tertimbang saham Weighted average number ofbiasa yang beredar 2.712.006.811 2.711.065.422 ordinary shares issued

(Rugi) laba per saham dasar yang dapat diatribusikan Basic (loss) earnings per sharekepada pemilik Perusahaan attributable to owners of the (Rupiah penuh) (2.284) 1.208 Company (whole Rupiah)


FINANCIAL REPORTS










17. (RUGI) LABA PER SAHAM (lanjutan) 17. (LOSS) EARNINGS PER SHARE (continued)

b. Laba per saham dilusian b. Diluted (loss) earnings per share

Perhitungan (rugi) laba per saham dilusian telah didasarkan pada (rugi) laba neto yang dapat diatribusikan kepada pemilik Perusahaan dan jumlah rata-rata tertimbang saham biasa yang beredar setelah penyesuaian atas dampak dari semua instrumen berpotensi saham biasa yang bersifat dilutif.

The calculation of diluted (loss) earnings per share has been based on the following net (loss) profit attributable to owners of the Company and weighted-average number of ordinary shares outstanding after adjustments for the effects of all dilutive potential ordinary shares.

31 Desember/


December 2017*

(Rugi) laba neto yang dapat diatribusikan kepada pemilik Perusahaan

(6.194.577) 3.274.027

Net (loss) profit attributable to owners of the Company

Rata-rata tertimbang saham biasa yang beredar setelah penyesuaian atas

Weighted average number of

dampak dari semua instrumen berpotensi saham biasa yang bersifat dilutif

2.728.435.672 2.719.590.283

ordinary shares outstanding after adjustments for the effects of all dilutive potential ordinary shares

(Rugi) laba per saham dilusian

yang dapat diatribusikan Dilutive (loss) earnings per share kepada pemilik Perusahaan attributable to owners of (Rupiah penuh) (2.270) 1.204 the Company (whole Rupiah)

18. SIFAT HUBUNGAN, SALDO DAN TRANSAKSI DENGAN PIHAK-PIHAK BERELASI

18. NATURE OF RELATIONSHIP, BALANCES AND TRANSACTIONS WITH RELATED PARTIES

Ikhtisar transaksi dan saldo dengan pihak-pihak berelasi adalah sebagai berikut:

Summary of transactions and balances with related parties is as follows:

Nilai tercatat/Carrying amounts Persentase terhadap jumlah aset konsolidasian/

Percentage to total consolidated assets 31 Desember/




December 2017 Piutang/receivables:

PT Agro Maju Raya - 312.577 - 1,17% Eastern Field Developments Limited 50.684 - 0,25% - PT Dwinad Nusa Sejahtera - 36.708 - 0,14% PT Tenaga Listrik Gorontalo - 26.825 - 0,10% Piutang dividen/Dividend receivables:

PT Adaro Strategic Lestari 35.599 44.302 0,18% 0,16% PT Adaro Energy Tbk. 40.621 49.850 0,20% 0,19% PT Adaro Strategic Capital 89.303 111.137 0,44% 0,42%

216.207 581.399 1,07% 2,18%

Nilai tercatat/Carrying amounts 31 Desember/


December 2017

Pendapatan bunga: Interest income:

PT Merdeka Copper Gold Tbk 8.250 - PT Merdeka Copper Gold Tbk Eastern Field Developments Limited 1.740 - Eastern Field Developments Limited 9.990 -



December 2017

Jasa manajemen: Management fee:

PT Mitra Pinasthika Mustika Tbk - 556 PT Mitra Pinasthika Mustika Tbk PT Bumi Suksesindo - 281 PT Bumi Suksesindo - 837










18. SIFAT HUBUNGAN, SALDO DAN TRANSAKSI DENGAN

PIHAK-PIHAK BERELASI (lanjutan) 18. NATURE OF RELATIONSHIP, BALANCES AND

TRANSACTIONS WITH RELATED PARTIES (continued)



December 2017

Beban Sewa: Rent expense:

PT Satria Sukses Makmur 5.339 5.873 PT Satria Sukses Makmur PT Mitra Pinasthika Mustika Rent 1.568 2.349 PT Mitra Pinasthika Mustika Rent PT Dayakarya Solusi Sejati 315 - PT Dayakarya Solusi Sejati PT Surya Anugerah Kencana 195 - PT Surya Anugerah Kencana 7.417 8.222

Tabel berikut mengikhtisarkan transaksi dan saldo yang tereliminasi pada saat proses konsolidasi:

The following table summarizes the transactions and balances which were eliminated in the consolidation process:



December 2017

Piutang: Receivable:

PT Trimitra Karya Jaya 206.852 - PT Trimitra Karya Jaya



December 2017

Uang muka penyertaan saham: Advances for investment in shares:

PT Saratoga Sentra Business 510.059 444.835 PT Saratoga Sentra Business PT Wahana Anugerah Sejahtera 260.000 - PT Wahana Anugerah Sejahtera PT Nugraha Eka Kencana 219.400 - PT Nugraha Eka Kencana 989.459 444.835



December 2017

Pinjaman: Borrowings:

PT Trimitra Karya Jaya 1.999.964 - PT Trimitra Karya Jaya PT Nugraha Eka Kencana - 168.605 PT Nugraha Eka Kencana 1.999.964 168.605



December 2017

Pendapatan dividen: Dividend income:

PT Wahana Anugerah Sejahtera 151.135 179.722 PT Wahana Anugerah Sejahtera PT Saratoga Sentra Business 116.942 - PT Saratoga Sentra Business PT Nugraha Eka Kencana 44.353 88.596 PT Nugraha Eka Kencana 312.430 268.318



December 2017

Pendapatan Bunga: Interest income:

PT Trimitra Karya Jaya 74 - PT Trimitra Karya Jaya



December 2017

Beban Bunga: Interest expense: PT Nugraha Eka Kencana 13.428 - PT Nugraha Eka Kencana

FINANCIAL REPORTS










18. SIFAT HUBUNGAN, SALDO DAN TRANSAKSI DENGAN

PIHAK-PIHAK BERELASI (lanjutan) 18. NATURE OF RELATIONSHIP, BALANCES AND

TRANSACTIONS WITH RELATED PARTIES (continued)

Selama tahun 2018, Grup mengakui pembagian dividen dari ASC, TBIG, PALM, ADRO dan ASL masing-masing sebesar Rp261.220, Rp250.969, Rp116.614, Rp117.710 dan Rp104.130.

During 2018, the Group recognized dividend

distributions from ASC, TBIG, PALM, ADRO and ASL

amounting to Rp261,220, Rp250,969, Rp116,614,

Rp117,710 dan Rp104,130, respectively.

Selama tahun 2018, Perusahaan menjual sebanyak 128.800.000 saham MDKA dengan nilai sebesar Rp309.120 kepada PT Suwarna Arta Mandiri, anak perusahaan dari PALM.

During 2018, the Company sold 128,800,000 shares of

MDKA with total value of Rp309,120 to

PT Suwarna Arta Mandiri, a subsidiary of PALM.

Selama tahun 2017, Grup mengakui pembagian dividen dari ASC, ASL, ADRO, MPMX, TBIG dan PALM masing-masing sebesar Rp157.524, Rp62.793, Rp74.675,Rp282.070, Rp221.578 dan Rp78.605.

During 2017, the Group recognized dividend

distributions from ASC, ASL, ADRO, MPMX, TBIG and

PALM amounting to Rp157,524, Rp62,793, Rp74,675,

Rp282,070, Rp221,578 and Rp78,605, respectively.

Perusahaan memberikan remunerasi kepada anggota Komisaris dan Direksi Perusahaan (Personel Manajemen Kunci) berupa gaji dan tunjangan dengan jumlah keseluruhan sebesar Rp23.052 dan Rp38.887untuk tahun 2018 dan 2017.

The Company provided remuneration to the

Commissioners and Directors of the Company (Key

Management Personnel) in the form of salaries and

other benefits totaling Rp23,052 and Rp38,887 for 2018

and 2017, respectively.

Pihak-pihak berelasi dan sifat hubungan adalah sebagai berikut:

The related parties and the nature of relationships are

as follows:

Pihak-pihak berelasi/Related parties Sifat hubungan/Nature of relationship

PT Saratoga Sentra Business Entitas anak/Subsidiary PT Nugraha Eka Kencana Entitas anak/Subsidiary PT Satria Sukses Makmur Entitas anak/Subsidiary PT Wana Bhakti Sukses Mineral Entitas anak/Subsidiary PT Trimitra Karya Jaya Entitas anak/Subsidiary PT Agro Maju Raya Entitas asosiasi/Associate PT Dwinad Nusa Sejahtera Entitas asosiasi/Associate PT Tenaga Listrik Gorontalo Entitas asosiasi/Associate PT Adaro Strategic Lestari Entitas asosiasi/Associate PT Adaro Strategic Capital Entitas asosiasi/Associate PT Bumi Suksesindo Entitas asosiasi/Associate PT Mitra Pinasthika Mustika Rent Entitas asosiasi/Associate PT Tower Bersama Infrastructure Tbk Entitas asosiasi/Associate PT Provident Agro Tbk Entitas asosiasi/Associate PT Suwarna Arta Mandiri Entitas anak/subsidiary PT Provident Agro Tbk PT Merdeka Copper Gold Tbk Entitas asosiasi/Associate Eastern Field Developments Limited Entitas anak/subsidiary PT Merdeka Copper Gold Tbk PT Adaro Energy Tbk Entitas investasi dari pemegang saham akhir/Investment

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is i

s th

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ound

tha

t dr

ives

the

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pany

to

acti

vely

in

vest

in t

his

sect

or.

3.

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uk k

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men

3.

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rodu

cts

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nesi

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ki j

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h pe

ndud

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ang

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r ya

ng m

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akan

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pas

ar b

agi

sekt

or r

itel

. Pe

rusa

haan

mem

anda

ng s

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r in

i sa

ngat

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tif,

ole

h ka

rena

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rusa

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mel

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an in

vest

asi s

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a ha

s a

larg

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whi

ch i

s th

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mar

ket

for

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e Co

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ny v

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ed t

his

as a

ver

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, th

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ore

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is

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ing

in t

his

sect

or.

FINANCIAL REPORTS


Eksh

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8 E

xhib

it E

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PT

SA

RA

TO

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IN

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AM

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AN

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(LA

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m j

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an R

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ali d

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lain

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bk.

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ON

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FIN

AN

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TS

Y

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EN

DED

31 D

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ND

2017

(C

ON

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UE

D)

(E

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n m

illi

ons

of

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h,

unle

ss o

therw

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d)

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(co

nti

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rmas

i se

gmen

ope

rasi

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p ta

hun

yang

ber

akhi

r 31

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embe

r 20

18 d

an 2

017

adal

ah s

ebag

ai

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kut:

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roup

’s o

pera

ting

seg

men

t in

form

atio

n fo

r th

e ye

ars

ende

d 31

Dec

embe

r 20

18 a

nd 2

017

was

as

fol

low

s:

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esem

ber/

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18

In

fras

truk

tur/

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mbe

r da

ya a

lam

/

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oduk

kon

sum

en/

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ntor

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at d

an

lain

-lai

n/

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lah/

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astr

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re

N

atur

al r

esou

rces

Cons

umer

pro

duct

s

Hea

d of

fice

& o

ther

s

Tota

l

Peng

hasi

lan

(ker

ugia

n)

(3.9

59.6

36)

(2.0

89.0

42)

(153

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) 23

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) In

com

e (l

oss)

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n -

(36.

708)

-

(469

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) (5

06.1

70)

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nses

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ba s

ebel

um p

ajak

(3

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) (2

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) (1

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40)

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pro

fit

befo

re t

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ban

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k pe

ngha

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n 25

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601.

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9 (7

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2.41

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sets

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omer

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stee

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ua in

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asi G

rup

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ah d

i Ind

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ia.

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omm

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pera

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of

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inve

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ents

are

in In

done

sia.










20. NILAI WAJAR INSTRUMEN KEUANGAN 20. FAIR VALUE OF FINANCIAL INSTRUMENTS

Tabel di bawah menunjukkan nilai tercatat dan nilai wajar aset dan liabilitas keuangan, termasuk levelnya dalam hirarki nilai wajar. Informasi di dalam tabel tidak termasuk nilai wajar aset dan liabilitas keuangan yang tidak diukur pada nilai wajar, yang nilai tercatatnya diperkirakan mendekati nilai wajarnya.

The following table shows the carrying amounts and fair values of financial assets and liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

Nilai

tercatat/Carrying amount Nilai wajar/Fair value


Nilai wajar melalui laba rugi/Fair value through profit or loss Biaya/Cost *) Level 1/Level 1 Level 2/Level 2

Level 3/Level 3 Jumlah/Total Investasi pada efek ekuitas (Catatan 7)/

Investment in equity securities (Note 7) 18.730.170 398.982 12.931.893 4.934.955 464.340 18.730.170 Aset keuangan derivatif (Catatan 8)/ Derivative financial assets (Note 8) 49.675 - - 49.675 - 49.675

Jumlah aset keuangan/ Total financial assets 18.779.845 398.982 12.931.893 4.984.630 464.340 18.779.845 Liabilitas keuangan derivatif (Catatan 8)/

Derivative financial liabilities (Note 8) 13.279 - - 13.279 - 13.279 Jumlah liabilitas keuangan/Total

financial liabilities 13.279 - - 13.279 - 13.279 31 Desember/December 2017 Investasi pada efek ekuitas (Catatan 7)/

Investment in equity securities (Note 7) 24.755.150 88.521 16.964.947 7.068.367 633.315 24.755.150 Instrumen keuangan derivatif (Catatan 8)/ Derivative financial instruments (Note 8) 52.065 - - 52.065 - 52.065 Equity share swap (Catatan/Note 11) 54.792 - - 54.792 - 54.792 Jumlah aset keuangan/Total financial assets 24.862.007 88.521 16.964.947 7.175.224 633.315 24.862.007 Obligasi tukar/Exchangeable bonds

(Catatan/Note 11) 958.639 - - 958.639 - 958.639 Jumlah liabilitas keuangan/Total

financial liabilities 958.639 - - 958.639 - 958.639

*) Manajemen berpendapat bahwa untuk investasi yang baru diperoleh (dalam 12 bulan terakhir), nilai perolehannya masih mencerminkan nilai wajar.

*) Management believes that investment that was recently acquired (within the last 12 months), the acquisition cost still reflects fair value.

21. MANAJEMEN RISIKO KEUANGAN 21. FINANCIAL RISK MANAGEMENT

Grup menyadari bahwa risiko merupakan bagian yang tidak terpisahkan dari operasional Grup dan dapat dikelola secara praktis dan efektif setiap hari.

The Group realizes that risk is an integral part of its operational activities and can be managed practically and effectively day by day.

Pengelolaan risiko Grup mencakup keseluruhan lingkup aktivitas usaha Grup, yang didasarkan pada kebutuhan akan keseimbangan antara fungsi operasional bisnis dengan pengelolaan risikonya. Dengan manajemen risiko dan kebijakan yang berfungsi baik, maka manajemen risiko akan menjadi mitra strategis bagi bisnis dalam mendapatkan hasil optimal dari operasi Grup.

Risk management within the Group includes overall scope of business activities within the Group, which is based on the necessity of balance between business operational function and its risk management thereof. By means of proper risk management and policy, thus the risk management is a strategic partner to the business in obtaining optimal outcomes from the Group’s course of operations.

Berbagai aktivitas yang dilakukan membuat Grup terekspos terhadap berbagai risiko keuangan, termasuk dampak nilai tukar mata uang asing dan tingkat suku bunga. Tujuan dari manajemen risiko Grup adalah untuk mengidentifikasi, mengukur, mengawasi, dan mengelola risiko dasar dalam upaya melindungi kesinambungan bisnis dalam jangka panjang dan meminimalisasi dampak yang tidak diharapkan pada kinerja keuangan Grup.

The Group’s various activities expose it to a variety of financial risks, including the effects of foreign currency exchange rates and interest rates. The objectives of the Group’s risk management are to identify, measure, monitor, and manage basic risks in order to safeguard the Group's long term business continuity and to minimize potential adverse effects on the financial performance of the Group.

FINANCIAL REPORTS










21. MANAJEMEN RISIKO KEUANGAN (lanjutan) 21. FINANCIAL RISK MANAGEMENT (continued)

Grup memiliki eksposur terhadap risiko investasi dan risiko-risiko atas instrumen keuangan seperti risiko kredit, risiko pasar, risiko likuiditas dan risiko permodalan.

The Group has exposure to investment risk and also the risks from financial instruments, such as credit risk, market risk, liquidity risk and capital risk.

a. Risiko kredit

Risiko kredit adalah risiko kerugian yang timbul jika pelanggan Grup gagal memenuhi kewajiban kontraktualnya. Risiko kredit terutama melekat kepada kas dan setara kas dan piutang usaha. Grup menempatkan kas dan setara kas pada institusi keuangan yang terpercaya. Risiko kredit dikelola terutama melalui penetapan kebijakan Grup dalam pemberian fasilitas kredit untuk mengurangi risiko kredit atas piutang. Saldo piutang dimonitor secara berkelanjutan untuk mengurangi eksposur terhadap kredit macet.

a. Credit risk

Credit risk is the risk of loss if the Group’s customers fail to fulfill their contractual obligations. Credit risk is primarily attributable to its cash and cash equivalents and trade receivables. The Group deposits its cash and cash equivalents at reputable financial institutions. Credit risk is managed primarily through determining the credit policies to mitigate the credit risk of receivables. Receivable balances are monitored on an ongoing basis to reduce the exposure to bad debts.

Eksposur maksimum dari aset keuangan di laporan posisi keuangan konsolidasian terhadap risiko kredit adalah sama dengan nilai tercatatnya.

The maximum exposure of the financial assets in the consolidated statements of financial position is equal to their carrying amounts.

Konsentrasi risiko kredit dari piutang Grup per 31 Desember 2018 dan 2017 berdasarkan segmen operasi adalah:

The concentration of credit risk of the Group’s receivables based on operating segments as of 31 December 2018 and 2017 is:

31 Desember/

December 2018


Infrastruktur - 26.825 Infrastructure Sumber Daya Alam 297.173 554.966 Natural Resources Produk Konsumen 67.145 41.400 Consumer Products Kantor Pusat dan lain-lain 1.582 92 Head Office and Others

365.900 623.283

Tabel berikut menyajikan rincian aset keuangan berdasarkan kualitas kreditnya:

The following table presents the detail of financial assets by their credit quality:


Nilai tercatat/ Carrying amount

Penurunan nilai/ Impairment Pokok/Gross

Kas dan setara kas 782.325 - 782.325 Cash and cash equivalents Kas yang dibatasi penggunaannya 518 - 518 Restricted cash Piutang 365.900 66.528 432.428 Receivables Aset keuangan derivatif 49.675 - 49.675 Derivative financial asset

1.198.418 66.528 1.264.946



Penurunan nilai/ Impairment Pokok/Gross

Kas dan setara kas 902.160 - 902.160 Cash and cash equivalents Kas yang dibatasi penggunaannya 7.859 - 7.859 Restricted cash Piutang 623.283 72.724 696.007 Receivables Instrumen keuangan derivatif 52.065 - 52.065 Derivative financial instruments

1.585.367 72.724 1.658.091

b. Risiko pasar b. Market risk

Grup terekspos terhadap risiko pasar yang berkaitan dengan perubahan nilai suku bunga dan nilai tukar mata uang asing yang akan menyebabkan berkurangnya penghasilan, atau bertambahnya biaya modal Grup.

The Group is exposed to market risk in relation to changes in interest rates and foreign exchange rates which may result in decrease in income, or increase in the Group’s cost of capital.











Risiko nilai tukar mata uang asing Foreign exchange risk

Risiko nilai tukar mata uang asing adalah risiko bahwa nilai wajar atau arus kas masa depan instrumen keuangan akan berfluktuasi karena perubahan dalam nilai tukar mata uang. Grup terekspos terhadap pergerakan nilai tukar mata uang asing terutama dari pinjaman bank dalam mata uang Dolar AS. Risiko ini, sampai pada batas tertentu, dimitigasi dengan investasi dan penghasilan dividen dalam mata uang Dolar AS.

Foreign exchange rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Group is exposed to foreign exchange rate risk mainly from the US Dollar denominated loans from bank. This risk is, to some extent, mitigated by certain investments and dividend income that is denominated in USD.

Grup secara aktif menangani risiko valuta asing yang tersisa melalui: 1. Pembelian US Dolar dari pasar spot atau dari

entitas anak/ ventura bersama/ perusahaan asosiasi.

2. Mencari solusi alternatif lain dalam mengatasi risiko, yaitu melalui lindung nilai penuh atau parsial.

The Group is actively addressing the remaining foreign exchange risk through: 1. Buying USD in spot market or from subsidiaries/joint ventures/ associates. 2. Seeking other alternative solutions in

addressing the risk, i.e a full or partial hedging.

Kegiatan ini diambil dalam menjamin kelangsungan hidup jangka panjang Grup dan meminimalisasi dampak yang buruk terhadap kinerja keuangan Grup.

These activities are taken in order to safeguard the Group’s long term continuity and to minimize potential adverse effects on the financial performance of the Group.

Tabel berikut menyajikan posisi keuangan Grup dalam mata uang asing yang dominan:

The following table presents the Group’s financial position in major foreign currencies:


Dolar AS/ USD

Lainnya setara Dolar AS/Others

in USD equivalents

Total Dolar AS/USD

Aset Assets Kas dan setara kas 33.219.729 1.468 33.221.197 Cash and cash equivalents Piutang 3.829.396 - 3.829.396 Receivables Kas yang dibatasi penggunaannya 33.457 - 33.457 Restricted cash

37.082.582 1.468 37.084.050 Liabilitas Liabilities

Beban akrual (35.023) - (35.023) Accrued expenses Pinjaman (178.215.209) - (178.215.209) Borrowings

(178.250.232) - (178.250.232)

Laporan posisi keuangan eksposur Net statement of financial position

bersih (141.167.650) 1.468 (141.166.182) exposure Kontrak opsi mata uang asing Foreign currency options contract

(Catatan 8) 61.750.000 - 61.750.000 (Note 8) Eksposur bersih (79.417.650) 1.468 (79.416.182) Net exposure

FINANCIAL REPORTS











b. Risiko pasar (lanjutan) b. Market risk (continued)

Risiko nilai tukar mata uang asing (lanjutan) Foreign exchange risk (continued)


Dolar AS/ USD

Lainnya setara Dolar AS/Others

in USD equivalents

Total Dolar AS/USD

Aset Assets

Kas dan setara kas 26.197.728 5.318 26.203.046 Cash and cash equivalents Piutang 4.099 - 4.099 Receivables Kas yang dibatasi penggunaannya 577.619 - 577.619 Restricted cash

26.779.446 5.318 26.784.764 Liabilitas Liabilities

Beban akrual (13.580) - (13.580) Accrued expenses Pinjaman (154.220.671) - (154.220.671) Borrowings Obligasi tukar (70.758.668) - (70.758.668) Exchangeable bonds

(224.992.919) - (224.992.919)

Laporan posisi keuangan eksposur Net statement of financial position

bersih (198.213.473) 5.318 (198.208.155) exposure Kontrak opsi mata uang asing Foreign currency options contract

(Catatan 8) 143.450.000 - 143.450.000 (Note 8) Eksposur bersih (54.763.473) 5.318 (54.758.155) Net exposure

Menguatnya/melemahnya Rupiah terhadap Dolar AS pada 31 Desember 2018 dan 2017 akan mengakibatkan peningkatan atau penurunan ekuitas dan laba rugi sebesar jumlah yang ditunjukkan di bawah ini, dengan asumsi seluruh variabel lainnya tetap.

The strengthening/weakening of the Rupiah against the USD at 31 December 2018 and 2017 would have increased or decreased equity and profit or loss by the amount shown below, assuming all other variables held constant.

31 Desember/


December 2017

Rupiah menguat 5%: Rupiah strengthens by 5%: Ekuitas [naik (turun)] 43.126 27.820 Equity [increase (decrease)] Laba rugi [naik (turun)] 43.126 27.820 Profit or loss [increase (decrease)]

Rupiah melemah 5%: Rupiah weakens by 5%: Ekuitas [naik (turun)] (43.126) (27.820) Equity [increase (decrease)] Laba rugi [naik (turun)] (43.126) (27.820) Profit or loss [increase (decrease)]










b. Risiko pasar (lanjutan) b. Market risk (continued)

Risiko suku bunga Interest rate risk Risiko suku bunga timbul dari perubahan suku bunga pasar atas nilai wajar aset dan liabilitas keuangan. Grup menerbitkan obligasi tukar yang terekspos terhadap risiko nilai wajar dari suku bunga. Eksposur Grup terhadap risiko arus kas dari suku bunga dimitigasi dengan penggunaan suku bunga tetap dari obligasi dan equity swap. Dampak dari perubahan suku bunga terhadap nilai wajar dari obligasi dijelaskan di Catatan 11.

Interest rate risk arises from the effects of fluctuations in the prevailing levels of market interest rates on the fair value of financial assets and liabilities. The Group issued exchangeable bonds that expose the Group to fair value interest rate risk. The Group’s exposure to cash flow interest rate risk is mitigated by the use of fixed interest rates on the bonds and equity swap. The impact of interest rate changes upon fair value of the bonds is discussed in Note 11.

Risiko suku bunga Grup juga timbul dari pinjaman bank dan fasilitas kredit yang diterbitkan dengan dasar suku bunga mengambang. Oleh karena itu, Grup memiliki eksposur atas fluktuasi arus kas yang diakibatkan oleh perubahan suku bunga yang sebagian dihapuskan oleh suku bunga mengambang dari kas dan setara kas, piutang non-usaha dan kas yang dibatasi penggunaannya. Grup mengelola penghasilan bunga melalui kombinasi antara suku bunga tetap dan mengambang untuk kas dan setara kas (termasuk deposito berjangka), piutang non-usaha, dan kas yang dibatasi penggunaannya dan membuat perbandingan tingkat suku bunga dengan yang ada di pasar keuangan. Grup berkeyakinan bahwa perubahan pada suku bunga di akhir periode pelaporan, dimana semua variabel lain tetap sama, tidak akan memiliki dampak signifikan terhadap ekuitas dan laba rugi.

The Group’s interest rate risk also arises from bank loans and credit facilities issued at floating interest rates. Accordingly, the Group has an exposure to fluctuation in cash flows due to changes in interest rates, which is partially offset with floating interest rates from cash and cash equivalents, non-trade receivables and restricted cash. The Group manages interest income through a mix of fixed and floating interest rates of cash and cash equivalents (including time deposits), non-trade receivables, and restricted cash and makes comparison of such rates in the relevant financial markets. The Group believes that a change in interest rates at the end of the reporting period, with all other variables remain constant, would not have significant impact to equity and profit or loss.

c. Risiko likuiditas c. Liquidity risk

Risiko likuiditas merupakan risiko yang timbul dalam situasi dimana arus kas masuk Grup dari pendapatan jangka pendek tidak cukup untuk memenuhi arus kas keluar untuk pengeluaran jangka pendek.

Liquidity risk is a risk that arises in situations where the Group’s cash inflows from short-term revenue is not adequate to cover cash outflows for short-term expenditure.

Untuk mengelola risiko likuiditas, Grup menerapkan manajemen risiko sebagai berikut: 1. memonitor dan menjaga kas dan setara kas di

level yang diperkirakan cukup untuk mendanai kegiatan operasional Grup dan mengurangi pengaruh fluktuasi dalam arus kas;

2. secara rutin memonitor perkiraan arus kas dan

arus kas aktual; 3. secara rutin memonitor profil jatuh tempo

pinjaman dan melakukan penyesuaian seperlunya;

4. secara terus-menerus menilai kondisi pasar keuangan untuk kesempatan memperoleh dana; dan

5. sebagai tambahan, Grup memiliki fasilitas pinjaman stand-by yang dapat ditarik sesuai dengan permintaan untuk mendanai kegiatan operasi pada saat diperlukan.

To manage its liquidity risk, the Group applies the following risk management: 1. monitor and maintain its cash and cash

equivalents at a level deemed adequate to finance the Group's operational activities and to mitigate the effect of fluctuations in cash flows;

2. regularly monitor projected and actual cash flow;

3. regularly monitor loan maturity profiles and make relevant adjustments;

4. continuously assess the financial markets for

opportunities to raise funds; and

5. in addition, the Group has a stand-by loan facility that can be drawn down upon request to fund its operations when needed.

FINANCIAL REPORTS











c. Risiko likuiditas (lanjutan) c. Liquidity risk (continued)

Tabel berikut menyajikan liabilitas keuangan Grup berdasarkan jatuh tempo kontraktualnya, termasuk estimasi pembayaran bunga.

The following table presents the Group’s financial liabilities based on their contractual maturities, including the estimated interest payments:

Jatuh tempo/Maturity period


Arus kas kontraktual/

Contractual cash flows

Kurang dari 1 tahun/ Less than

1 year 1-2 tahun/ 1-2 years

2-5 tahun/ 2-5 years


Utang lainnya ke pihak ketiga 309 309 309 - -

Other payables to third parties

Beban akrual 4.226 4.226 4.226 - - Accrued expenses Pinjaman 3.937.919 4.756.020 1.373.149 842.951 2.539.920 Borrowings

3.942.454 4.760.555 1.377.684 842.951 2.539.920

Jatuh tempo/Maturity period


Arus kas kontraktual/

Contractual cash flows

Kurang dari 1 tahun/ Less than

1 year 1-2 tahun/ 1-2 years

2-5 tahun/ 2-5 years


Utang lainnya ke pihak ketiga 85 85 85 - -

Other payables to third parties

Beban akrual 3.741 3.741 3.741 - - Accrued expenses Pinjaman 2.465.413 2.802.283 358.825 1.295.673 1.147.785 Borrowings Obligasi tukar 958.639 1.037.783 27.922 27.922 981.939 Exchangeable bonds

3.427.878 3.843.892 390.573 1.323.595 2.129.724

d. Risiko permodalan d. Capital risk

Tujuan Grup mengatur modal adalah untuk menjaga kemampuan Perusahaan untuk melanjutkan usaha yang terus menerus supaya memberikan keuntungan kepada pemegang saham dan manfaat ke pemangku kepentingan lainnya, serta untuk mempertahankan struktur modal yang optimal untuk mengurangi biaya modal.

The Group’s objective in managing capital is to safeguard the Company’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders, as well as to maintain an optimal capital structure to reduce the cost of capital.

Grup secara aktif dan rutin menelaah dan mengelola struktur permodalan dengan mempertimbangkan kebutuhan modal masa depan dan efisiensi modal Grup, profitabilitas masa sekarang dan yang akan datang, proyeksi arus kas operasi, proyeksi belanja modal dan proyeksi peluang investasi yang strategis.

The Group actively and regularly reviews and manages its capital structure by taking into consideration the future capital requirements and capital efficiency of the Group, prevailing and projected profitability, projected operating cash flows, projected capital expenditures and projected strategic investment opportunities.

Grup mengevaluasi struktur modalnya melalui rasio pinjaman terhadap modal (gearing ratio) yang dihitung dengan membagi pinjaman neto dengan modal. Pinjaman neto adalah jumlah liabilitas sebagaimana disajikan di laporan posisi keuangankonsolidasian dikurangi kas dan setara kas. Sedangkan modal meliputi seluruh ekuitas yang dapat diatribusikan kepada pemilik Perusahaan. Pada tanggal pelaporan, perhitungan rasio tersebut adalah sebagai berikut:

The Group evaluates its capital structure through the debt-to-equity ratio (gearing ratio), which is calculated by dividing the net debt to equity. Net debt represents the sum of liabilities as presented in the consolidated statement of financial position less cash and cash equivalents. The equity relates to the entire attributable equity to owners of the Company. As of reporting dates, the calculations of this ratio are as follows:










d. Risiko permodalan d. Capital risk

31 Desember/

December 2018

31 Desember/

December 2017

Jumlah liabilitas 4.150.626 4.342.234 Total liabilities Dikurangi: kas dan setara kas (782.337) (902.173) Less: cash and cash equivalents Pinjaman neto 3.368.289 3.440.061 Net debt Jumlah ekuitas yang diatribusikan

kepada pemilik Perusahaan

15.655.468

22.033.006

Total equity attributable to the owners of the Company

Rasio pinjaman terhadap modal 0,22 0,16 Debt to equity ratio

e. Risiko harga saham e. Equity price risk

Perusahaan telah menginvestasikan aset dalam

jumlah yang wajar pada efek ekuitas. Perusahaan

berinvestasi dalam bisnis yang memiliki ekonomi

yang sangat baik, dengan manajemen yang cakap

dan jujur dan dengan harga yang masuk akal.

The Company has maintained reasonable amounts of invested assets in equity securities. The Company invests in businesses that possess excellent economics, with able and honest management and at sensible prices.

Harga pasar dari efek ekuitas tergantung pada

fluktuasi yang dapat berdampak pada jumlah

realisasi atas penjualan dari nilai investasi di masa

depan dapat berbeda secara signifikan dari nilai

yang dilaporkan sekarang. Fluktuasi harga pasar

dari instrumen tersebut dapat disebabkan oleh

perubahan karakteristik ekonomi yang mendasari

investee, harga relatif dari alternatif investasi dan

kondisi pasar secara umum.

Market prices of equity securities instruments are subject to fluctuation and consequently the amount realized in the subsequent sale of an investment may significantly differ from thecurrently reported value. Fluctuation in the market price of such instruments may result from perceived changes in the underlying economic characteristics of the investee, the relative price of alternative investments and general market conditions.

Lihat Catatan 7 untuk penjelasan atas pengukuran

nilai wajar efek ekuitas.

Please see Note 7 for discussion on the fair value measurement of equity securities.

Menguatnya/melemahnya harga saham tertentu

pada 31 Desember 2018 dan 2017 akan

mengakibatkan peningkatan atau penurunan

ekuitas dan laba rugi sebesar jumlah yang

ditunjukkan di bawah ini, dengan asumsi seluruh

variabel lainnya tetap.

The strengthening/weakening of certain share prices at 31 December 2018 and 2017 would have increased/ decreased equity and profit and loss by the amount shown below, assuming all other variables held constant.

31 Desember/


December 2017

ADRO menguat/ melemah 5%: ADRO strengthens/ weakens by 5%: Ekuitas [naik/turun] 240.290 366.332 Equity [increase/decrease] Laba rugi [naik/turun] 240.290 366.332 Profit or loss [increase/decrease]

TBIG menguat/ melemah 5%: TBIG strengthens/ weakens by 5%: Ekuitas [naik/turun] 267.056 473.260 Equity [increase/decrease] Laba rugi [naik/turun] 267.056 473.260 Profit or loss [increase/decrease]

MDKA menguat/ melemah 5%: MDKA strengthens/ weakens by 5%: Ekuitas [naik/turun] 151.266 80.858 Equity [increase/decrease] Laba rugi [naik/turun] 151.266 80.858 Profit or loss [increase/decrease]

MPMX menguat/ melemah 5%: MPMX strengthens/ weakens by 5%: Ekuitas [naik/turun] 98.182 105.234 Equity [increase/decrease] Laba rugi [naik/turun] 98.182 105.234 Profit or loss [increase/decrease]

FINANCIAL REPORTS










22. PERJANJIAN PENTING, IKATAN DAN KONTINJENSI

22. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES

Dibawah ini merupakan perjanjian penting, ikatan dan kontinjensi yang dimiliki oleh Grup:

Below are significant agreements, commitments and contingencies of the Group:

a. Pada tanggal 30 Juli 2014, Perusahaan telah menandatangani perjanjian dengan FJ Benjamin Singapore Pte. Ltd. dalam rangka pembelian Mandatory Convertible Bonds (MCB) yang diterbitkan oleh PT Gilang Agung Persada (GAP) dengan nilai sebesar USD3.000.000. Berdasarkan perjanjian tersebut, MCB dapat dikonversikan menjadi saham baru untuk mempertahankan kepemilikan Perusahaan di GAP. Ketentuan MCB ini telah di amandemen pada tanggal 16 Mei 2018, antara lain, mengubah tanggal jatuh tempo MCB menjadi 31 Januari 2020 atau pada tanggal lain yang disepakati secara tertulis oleh kedua belah pihak.

a. On 30 July 2014, the Company entered into an agreement with FJ Benjamin Singapore Pte. Ltd. to purchase Mandatory Convertible Bonds (MCB) issued by PT Gilang Agung Persada (GAP) for a total value of USD3,000,000. Under the agreement, the MCB can be converted into new shares which shall maintain the Company’s ownership in GAP. This MCB has been amended on 16 May 2018, among others, to amend maturity date of the MCB to 31 January 2020 or on any other date as agreed in writing by both parties.

b. Pada tanggal 30 Juli 2014, Perusahaan telah

menandatangani perjanjian untuk memiliki obligasi tukar yang diterbitkan oleh PT Sukses Mitra Persada dengan nilai sebesar USD166.667, yang jika ditukar, akan meningkatkan kepemilikan saham Perusahaan di GAP sebesar 1,67%. Pada tanggal 9 Mei 2018, Perusahaan telah mengkonversi obligasi tukar ini sehingga meningkatkan kepemilikan Perusahaan di GAP menjadi 5,83%.

b. On 30 July 2014, the Company entered into an agreement to subscribe exchangeable bond issued by PT Sukses Mitra Persada for a total value of USD166,667, which if exercised, will enable the Company to increase its stake in GAP by up to additional 1.67%. On 9 May 2018, the Company has converted this exchangeable bond and therefore increased the Company’s ownership in GAP to become 5.83%.

c. PT Trimitra Karya Jaya, anak perusahaan

Perseroan (“TKJ”), telah menandatangani Perjanjian Penerbitan Surat Hutang dengan Merdeka Mining Partners Pte. Ltd. (“MMP”) pada bulan Agustus dan September 2016 dengan jumlah sebesar USD 14.465.000.

Sehubungan dengan hal tersebut, TKJ memiliki Hak Opsi dimana TKJ memiliki hak untuk dapat membeli 99.813.347 saham MDKA yang dimiliki MMP. Di tahun 2018, TKJ telah melaksanakan hak opsi yang dimilikinya terhadap MMP dengan nilai total sebesar Rp222.584. Pengalihan saham MDKA ini telah selesai dilakukan pada tanggal 11 Desember 2018 dan MMP telah melunasi jumlah pokok utangnya.

c. PT Trimitra Karya Jaya, a subsidiary of the Company ("TKJ"), has signed Promissory Notes Issuance Agreements with Merdeka Mining Partners Pte. Ltd. ("MMP") in August and September 2016 for the amount of USD 14,465,000.

In relation to this, TKJ has an Option Right whereby TKJ has the right to buy 99,813,347 shares owned by MMP in MDKA. In 2018, TKJ has exercised its Option Right in MMP for total amount of Rp222,584. The transfer of MDKA shares from MMP to TKJ was completed on 11 December 2018 and MMP has fully repaid the principle of its loan.

d. Pada tanggal 31 Januari 2018, PT Tri Wahana

Universal (“TWU”), anak perusahaan PT Wana Bhakti Sukses Mineral, telah menghentikan kegiatan operasionalnya sehubungan dengan implementasi peraturan baru mengenai perhitungan harga minyak mentah yang membuat aktivitas bisnis TWU tidak dapat berjalan lagi.

d. On 31 January 2018, PT Tri Wahana Universal (“TWU), a subsidiary of PT Wana Bhakti Sukses Mineral, ceased the operations of its mini refinery, due to the implementation of a new ruling on crude oil price formula that made TWU’s business activities no longer viable.









23. PENYELESAIAN LAPORAN KEUANGAN KONSOLIDASIAN 23. THE COMPLETION OF CONSOLIDATED FINANCIAL

STATEMENT

Laporan keuangan konsolidasian disetujui untuk diterbitkan oleh Direksi pada tanggal 25 Maret 2019.

The Company’s consolidated financial statements were authorized for issuance by the Board of Directors on 25 March 2019.

24. INFORMASI KEUANGAN KOMPARATIF 24. COMPARATIVE FINANCIAL INFORMATION

Seperti yang dijelaskan di Catatan 2g, Grup menerapkan Pernyataan Standar Akuntansi Keuangan (“PSAK”) 71, “Instrumen Keuangan”, secara restrospektif efektif 1 Januari 2018 sejalan dengan ketentuan transisi PSAK - 71. Sehingga, informasi komparatif tanggal 31 Desember 2017 serta untuk tahun yang berakhir pada tanggal 31 Desember 2017, dan 31 Desember 2016 (darimana informasi keuangan tanggal 1 Januari 2017 berasal).

As disclosed in Note 2g, the Group retrospectively adopted the Statement of Financial Accounting Standards (“PSAK”) - 71, “Financial Instruments”,effective 1 January 2018 in line with the transition provisions of PSAK – 71. Accordingly, the comparative financial information as of 31 December 2017, for the year ended 31 December 2017, and 31 December 2016(from which financial information as of 1 January 2017 has been derived).

Karena penerapan kebijakan akuntansi baru tersebut, investasi dalam efek ekuitas yang sebelumnya dikategorikan sebagai tersedia untuk dijual, sekarang dicatat sebagai aset keuangan yang diukur pada FVTPL.

As a result of applying the new accounting policy, investments in equity instruments which were previously categorized as available for sale have been accounted as financial assests measured at FVTPL.

Dibawah ini adalah ikhtisar informasi yang dilaporkan sebelumnya sebelum penerapan dan penyesuaian atas PSAK-71 dan informasi yang disajikan kembali, tanggal 1 Januari dan 31 Desember 2017:

The following is a summary of the information as previously reported prior to the adoption of PSAK-71,adjustments made and the restated information, as of 1 January 2017 and 31 December 2017:

LAPORAN POSISI KEUANGAN

KONSOLIDASIAN 1 Januari/January 2017 CONSOLIDATED STATEMENT OF

FINANCIAL POSITION

Dilaporkan sebelumnya/ As previously

reported Penyesuaian/ adjustments

Disajikan kembali/

As restated EKUITAS EQUITY Laba yang belum direalisasi atas

investasi pada efek ekuitas 1.473.563 (1.473.563) - Unrealized gain on investments

in equity securities Saldo laba 11.989.793 1.473.563) 13.463.356 Retained earnings


LAPORAN POSISI KEUANGAN KONSOLIDASIAN



Disajikan kembali/

As restated CONSOLIDATED STATEMENT OF

FINANCIAL POSITION

EKUITAS EQUITYLaba yang belum direalisasi atas

investasi pada efek ekuitas 1.515.892 (1.515.892) - Unrealized gain on investments

in equity securities Saldo laba 14.984.136 1.515.892) 16.500.028 Retained earnings

Penyesuaian di atas tidak menyebabkan perubahan terhadap total aset, total liabilitas atau total ekuitas yang dilaporkan sebelumnya.

The above adjustments did not result in any change to the previously reported total assets, total liabilities or total equity.

FINANCIAL REPORTS










24. INFORMASI KEUANGAN KOMPARATIF (lanjutan) 24. COMPARATIVE FINANCIAL INFORMATION (continued)

Dampak dari penerapan PSAK-71 untuk tahun yang berakhir tanggal 31 Desember 2017, adalah sebagai berikut:

The impact of the adoption of PSAK-71 for the yearended 31 December 2017 is as follows:


LAPORAN LABA RUGI DAN PENGHASILAN KOMPREHENSIF LAIN KONSOLIDASIAN:



Disajikan kembali/

As restated

CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER

COMPREHENSIVE INCOME Keuntungan bersih atas investasi pada

efek ekuitas 2.293.403 63.123 2.356.526 Net gain on investments in equity

securities Beban pajak penghasilan (79.292) (9.662) (88.954) Income tax expense PENGHASILAN KOMPREHENSIF LAIN: OTHER COMPREHENSIVE INCOME:Pos-pos yang akan direklasifikasikan ke

ke laba rugi Items that subsequently will be reclassified to profit or loss

Perubahan neto nilai wajar aset keuangan tersedia untuk dijual 63.123 (63.123) -

Net changes in fair value of available for-sale financial assets

Implikasi pajak terkait pos-pos yang direklasifikasi ke laba rugi (9.662) 9.662 -

Tax effect of items that will be reclassified to profit or loss

Penyesuaian di atas tidak menyebabkan perubahan terhadap total penghasilan komprehensif atau arus kas yang dilaporkan sebelumnya.

The above adjustments did not result in any change to the previously reported total comprehensive income or cash flows.

25. PERISTIWA SETELAH PERIODE PELAPORAN 25. SUBSEQUENT EVENTS

a. Pada tanggal 31 Januari 2019, Perusahaan telah memperoleh fasilitas pinjaman baru dari ING Bank N.V, cabang Singapura dengan jumlah maksimal saham sebesar USD40.000.000.

a. On 31 January 2019, the Company obtained a new loan facility from ING Bank N.V, a Singapore branch with total maximum amount of USD40,000,000.

b. Pada tanggal 6 Maret 2019, Perusahaan telah memperoleh tambahan 160.326.106 sahamPT Mitra Pinasthika Mustika Tbk. (MPMX) dengan nilai sebesar Rp152.310 yang merupakan hasil dari Penawaran Tender Sukarela yang dilakukan oleh Perusahaan atas saham MPMX sehingga kepemilikan saham Perusahaan di MPMX mengalami kenaikan dari 48,62% menjadi 52,21%.

b. On 6 March 2019, the Company has acquired additional 160,326,106 shares of PT Mitra Pinasthika Mustika Tbk. (MPMX) with total amount of Rp152,310 resulting from the Voluntary Tender Offer conducted by the Company on MPMX’s shares therefore the Company's share ownership in MPMX increased from 48.62% to 52.21%.


FINANCIAL REPORTS


I. General Provision1. Annual Report of a listed company is one of the

most important sources as the base for investors or shareholders in making investment decision, and is a means of monitoring issuers or public company.

2. Along with the development of Capital Market and the growing needs of investors or shareholders regarding information disclosure, the Board of Directors and the Board of Commissioners are required to improve the quality of information disclosure through annual report.

3. Annual Report should be prepared in an orderly manner and should be informative to provide conveniences for the investors or shareholders in getting the information they need.

4. This Circular Letter of the Financial Service Agency serves a guidelines for Issuers or Public Companies that should be applied in preparing their Annual Report.

II. Format Of Annual Report1. Annual Report should be presented in the printed

format and in electronic document copy. 2. The printed version of the Annual Report should be

printed on light-colored paper of fine quality, in A4 size, bound and can be reproduced in good quality.

3. The Annual Report presented in electronic document format is the Annual Report converted into pdf format.

III. Content Of Annual Report

1. General Provisiona. Annual Report should contain at least the following

information:1) summary of key financial information; 2) stock information (if any); 3) the Board of Directors report; 4) the Board of Commissioners report; 5) profile of Issuer or Public Company; 6) management discussion and analysis; 7) corporate governance applied by the Issuer or

Public Company; 8) corporate social and environmental

responsibility of the Issuer or Public Company; 9) audited annual report; 10) statement that the Board of Directors and the

Board of Commissioners are fully responsible for the Annual Report;

b. Annual Report may present the information in form of images, charts, tables, and diagrams are presented by mentioning the title and/or clear description, that is easy to read and be understood;

2. Description of Content of Annual Reporta. Summary of Key Financial Information Summary of Key Financial Information contains

financial information presented in comparison with previous 3 (three) fiscal years or since commencement of business if the Issuers or the Public Company commencing the business less than 3 (three) years, at least contain:1) income/sales; 2) gross profit; 3) profit (loss); 4) total profit (loss) attributable to equity holders of

the parent entity and non-controlling interest; 5) total comprehensive profit (loss); 6) total comprehensive profit (loss) attributable

to equity holders of the parent entity and non controlling interest;

7) earning (loss) per share; 8) total assets; 9) total liabilities; 10) total equities; 11) profit (loss) to total assets ratio; 12) profit (loss) to equities ratio; 13) profit (loss) to income ratio; 14) current ratio; 15) liabilities to equities ratio; 16) liabilities to total assets ratio; and17) other information and financial ratios relevant

to the Issuer or Public Company and type of industry;

b. Stock Information Stock Information (if any) at least contains:

1) shares issued for each three-month period in the last 2 (two) fiscal years (if any), at least covering: a) number of outstanding shares; b) market capitalization based on the price at

the Stock Exchange where the shares listed on;

c) highest share price, lowest share price, closing share price at the Stock Exchange where the shares listed on; and

d) share volume at the Stock Exchange where the shares listed on;

- Information in point a) should be disclosed by the Issuer, the public company whose shares is listed or not

listed in the Stock Exchange;- Information in point b), point c), and point

d) only be disclosed if the Issuer is a public company whose shares is listed in the Stock Exchange;

2) in the event of corporate actions, including stock split, reverse stock, dividend, bonus share, and change in par value of shares, then the share price referred to in point 1), should be added with explanation on:a) date of corporate action; b) stock split ratio, reverse stock, dividend,

bonus shares, and change in par value of shares;

c) number of outstanding shares prior to and after corporate action; and

d) share price prior to and after corporate action;

3) in the event that the company’s shares were suspended and/or delisted from trading during the year under review, then the Issuers or Public Company should provide explanation on the reason for the suspension and/or delisting; and

4) in the event that the suspension and/or delisting as referred to in point 3) was still in effect until the date of the Annual Report, then the Issuer or the Public Company should also explain the corporate actions taken by the company in resolving the suspension and/or delisting;

c. The Board of Directors Report The Board of Directors Report should at least

contain the following items:1) the performance of the Issuer or Public

Company, at least covering: a) strategy and strategic policies of the Issuer

or Public Company;b) comparison between achievement of results

and targets; c) challenges faced by the Issuer or Public

Company;

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2) description on business prospects; 3) implementation of good corporate governance

by Issuer or Public Company; and 4) changes in the composition of the Board of

Directors and the reason behind (if any);

d. The Board of Commissioners Report The Board of Commissioners Report should at least

contain the following items:1) assessment on the performance of the Board of

Directors in managing the Issuer or the Public Company;

2) supervision on the implementation of the strategy of the Issuer or Public Company;

3) view on the business prospects of the Issuer or Public Company as established by the Board of Directors;

4) view on the implementation of the corporate governance by the Issuer or Public Company;

5) changes in the composition of the Board of Commissioners and the reason behind (if any);

6) the frequency and procedure of providing advice to members of the Board of Directors;

e. Profile of the Issuer or Public Company Profile of the Issuer or Public Company should

cover at least:1) name of Issuer or Public Company, including

change of name, reason of change, and the effective date of the change of name during the year under review;

2) access to Issuer or Public Company, including branch office or representative office, where public can have access of information of the Issuer or Public Company, which include:a) address; b) telephone number; c) facsimile number; d) e-mail address; and e) website address;

3) brief history of the Issuer or Public Company; 4) vision and mission of the Issuer or Public

Company; 5) line of business according to the latest Articles

of Association, and types of products and/or services produced;

6) structure of organization of the Issuer or Public Company in chart form, at least 1 (one) level below the Board of Directors, with the names and titles;

7) the Board of Directors profiles include: a) name and short description of duties and

functions; b) latest photograph; c) age; d) citizenship; e) education; f) history position, covering information on:

(1) legal basis for appointment as member of the Board of Directors to the said Issuer or Public Company;

(2) dual position, as member of the Board of Directors, member of the Board of Commissioners, and/or member of committee, and other position (if any); and

(3) working experience and period in and outside the Issuer or Public Company;

g) competency enhancement education and/or training program for member of the Board of Directors during the year under review (if any); and

h) disclosure of affiliation with other members of the Board of Directors, members of the Board of Commissioners, and major shareholders (if any) including name of the affiliated party;

8) the Board of Commissioners profiles, at least include: a) name; b) latest photograph; c) age; d) citizenship; e) education; f) history position, covering information on:

(1) legal basis for the appointment as member of the Board of Commissioners who is not Independent Commissioner at the said Issuer or Public Company;

(2) legal bases for the first appointment as member of the Board of Commissioners who also Independent Commissioner at the said Issuer or Public Company;

(3) dual position; as member of the Board of Commissioners, member of the Board of Directors, and/or member of committee and other position (if any); and


g) competency enhancement education and/or training program for member of the Board of Commissioner during the year under review (if any);

h) affiliation with other members of the Board of Commissioners, and major shareholders (if any) including name of the affiliated party; and

i) statement of independence of Independent Commissioner in the event that the Independent Commissioner has been appointed more than 2 (two) periods (if any);

9) in the event that there were changes in the composition of the Board of Commissioners and/or the Board of Directors occurring between the period after year-end until the date the Annual Report submitted, then the last and the previous composition of the Board of Commissioners and/or the Board of Directors shall be stated in the Annual Report;

10) number of employees and description of distribution of education level and age of the employee in the year under review;

11) names of shareholders and ownership percentage at the end of the fiscal year, including:a) shareholders having 5% (five percent) or

more shares of Issuer or Public Company; b) Commissioners and Directors who own

shares of the Issuers or Public Company; and

c) groups of public shareholders, or groups of shareholders, each with less than 5% (five percent) ownership shares of the Issuers or Public Company;

PAGE

16

32

14

14

15

14

NA

14

NA

56

66

56

57

60

6060606060

60

60

43

PAGE

60

58-5958-59 58-59 58-59 58-59

58-59

58-59

58-59

58-59

41

58-59

NA

32

64-65

64-65

65-65


12) number of shareholders and ownership percentage at the end of the fiscal year, based on:a) ownership of local institutions; b) ownership of foreign institutions; c) ownership of local individual; and d) ownership of foreign individual;

13) information on major shareholders and controlling shareholders the Issuers of Public Company, directly or indirectly, and also individual shareholder, presented in the form of scheme or diagram;

14) name of subsidiaries, associated companies, joint venture controlled by Issuers or Public Company, with entity, percentage of stock ownership, line of business, total assets and operating status of the Issuers of Public Company (if any);

For subsidiaries, include the addresses of the said subsidiaries;

15) chronology of share listing, number of shares, par value, and bid price from the beginning of listing up to the end of the financial year, and name of Stock Exchange where the Issuers of Public Company shares are listed;

16) chronology of securities listing in addition to the said security in point 15), which at least should contain the name of the Securities, year of issuance, date of maturity, bid price, and rating of the securities (if any);

17) name and address of capital market supporting institutions and/or professionals;

18) in the event that the capital market supporting professionals provide services on a regular basis to the Issuer or the Public Company, then information on the services provided, fee and period of assignment should be disclosed; and

19) awards and/or certification of national and international scales bestowed on the Issuer or Public Company during the last fiscal year (if any), covering:a) name of award and/or certification; b) organization/institution that gives the

awards; and c) award/certificate validity period (if any);

f. Management Discussion and Analysis Management Analysis and Discussion Annual

should contain discussion and analysis on financial statements and other material information emphasizing material changes that occurred during the year under review, at least including:1) operational review per business segment,

according to the type of industry of the Issuer or Public Company including:a) production, including process, capacity, and

growth; b) income/sales; andc) profitability;

2) comprehensive financial performance analysis which includes a comparison between the financial performance of the last 2 (two) fiscal years, and explanation on the causes and effects of such changes, among others concerning:a. current assets, non-current assets, and total

assets; b) short term liabilities, long term liabilities,

total liabilities;c) equities;

d) sales/operating revenues, expenses and profit (loss), other comprehensive revenues, and total comprehensive profit (loss); and

e) cash flows;3) the capacity to pay debts by including the

computation of relevant ratios;4) accounts receivable collectability of the Issuer

or Public Company, including the computation of the relevant ratios;

5) capital structure and management policies concerning capital structure, including the basis for determining the said policy;

6) discussion on material ties for the investment of capital goods, including the explanation on at least: a) the purpose of such ties; b) source of funds expected to fulfill the said

ties; c) currency of denomination; and d) steps taken by the Issuer of Public

Company to protect the position of a related foreign currency against risks;

7) discussion on investment of capital goods which was realized in the last fiscal year, at least include: a) type of investment of capital goods; b) objective of the investment of capital

goods; andc) value of the investment of capital goods;

8) material Information and facts that occurring after the date of the accountant’s report (if any);

9) information on the prospects of the Issuer or the Company in connection with industry,econ-omy in general, accompanied with supporting quantitative data if there is a reliable data source;

10) comparison between target/projection at beginning of year and result (realization), concerning: a) income/sales; b) profit (loss); c) capital structure; or d) others that deemed necessary for the Issuer

or Public Company; 11) target/projection at most for the next one year

of the Issuer or Public Company, concerning: a) income/sales; b) profit (loss); c) capital structure; or d) dividend policy; e) or others that deemed necessary for the

Issuer or Public Company; 12) marketing aspects of the company’s products

and/or services the Issuer or Public Company, among others marketing strategy and market share;

13) description regarding the dividend policy during the last 2 (two) fiscal years, at least: a) dividend policy; b) the date of the payment of cash dividend

and/or date of distribution of non-cash dividend;

c) amount of cash per share (cash and/or non cash); and

d) amount of dividend per year paid;

PAGE

6565656543, 64

67

56, 64, 66, 68, 79

122,23

68

68

99

9

20-25

20-2520-25

10-11, 22-25

10-11, 22-2510-11, 22-25

PAGE

10-11, 22-25

10-11, 22-2523-24

23

24, 141

NA

NANA

NANA

NA

NANA

NA145

2

25

15, 25

NA

127

38, 75

127



14) use of proceeds from Public Offerings, under the condition of: a) during the year under review, on which

the Issuer has the obligation to report the realization of the use of proceeds, then the realization of the cumulative use of proceeds until the year end should be disclosed;

andb) in the event that there were changes in

the use of proceeds as stipulated in the Regulation of the Financial Services Authority on the Report of the Utilization of Proceeds from Public Offering, then Issuer should

explain the said changes;15) material information (if any), among others

concerning investment, expansion, divestment, acquisition, debt/capital restructuring, transactions with related parties and transactions with conflict of interest that occurred during the year under review, among others include:a) transaction date, value, and object; b) name of transacting parties; c) nature of related parties (if any); d) description of the fairness of the

transaction; ande) compliance with related rules and

regulations; 16) changes in regulation which have a significant

effect on the Issuer or Public Company and impacts on the company (if any); and

17) changes in the accounting policy, rationale and impact on the financial statement (if any);

g. Corporate Governance of the Issuer or Public Company

Corporate Governance of the Issuer or Public Company contains at least:1) the Board of Directors, covering:

a) the tasks and responsibilities of each member of the Board of Directors;

b) statement that the Board of Directors has already have board manual or charter;

c) procedure, legal basis, structure, and amount of remuneration of each member of the Board of Directors, relation between remuneration and performance of the Issuer or Public Company;

d) the policies and the frequency of the meeting of the Board of Directors, including the joint meeting with Board of Commissioners, and attendance of member of the Board of Directors in the said meeting;

e) information on the resolution from the AGM of the previous 1 (one) year, covering: (1) AGM resolutions that were realized

during the fiscal year; and(2) explanation for the unrealized

resolution; f) information regarding the AGM resolution

in the year under review, including: (1) AGM resolutions that were realized

during the fiscal year; and(2) explanation for the unrealized

resolution; g) assessment on the performance of the

committee under the Board of Directors;

2) the Board of Commissioners, among others include: a) duties and responsibilities of the Board of

Commissioners; b) statement that the Board of Commissioner

has already have the board manual or charter;

c) procedure, legal basis, structure, and amount of remuneration for each member of Board of Commissioners;

d) policies and frequency of meeting of the Board of Commissioners, including meeting with the Board of Directors, and attendance of each member of the Board of Commissioners in the said meetings;

e) policies of the Issuer or Public Company regarding the assessment on the performance of the Board of Directors and Board of Commissioners and the implementation, at least covering:(1) procedure for the implementation of

performance assessment; (2) criteria for assessment; and(3) assessor;

f) assessment on the performance of the committees under the Board of Commissioners; and

g) in the event that the Board of Commissioners does not establish the Nomination and Remuneration Committee, than should contain at least:(1) reason not to establish the committee;

and (2) procedure of nomination and

remuneration performed in the year under review;

3) Sharia Supervisory Board, for Issuer or Public Company that conduct business based on sharia law, as stipulated in the articles of association, at least containing:a) name; b) duty and responsibility of Sharia

Supervisory Board; and c) frequency and procedure in providing

advice and suggestion, as well as the compliance of Sharia Principles by the Issuer or Public Company in the Capital Market;

4) Audit Committee, among others covering: a) name and position in the committee; b) age; c) citizenship; d) education background; e) history of position; including:

(1) legal basis for the appointment as member of the committee;

(2) dual position, as member of Board of Commissioners, member of Board of Directors, and/or member of committee, and other position (if any); and


f) period and terms of office of the member of Audit Committee;

g) statement of independence of the Audit Committee;

h) policies and implementation of the frequency of meeting of the Audit Committee and attendance of member of Audit Committee;

PAGE

64

27, 28, 96

131-133

52

85, 14, 20

18, 32, 42

41, 44

43

42

39

39

PAGE

37, 39, 40

40

40

43

WIP

WIP

NA

NA

45-4659, 6159, 61 59, 61 59, 61

45

46

46


i) education and/or training during the year under review (if any); and

j) the activities of the Audit Committee in the year under review, in accordance with the Audit Committee Charter;

5) other committee of the Issuer or the Public Company formed to support the function and duty of the Board of Directors and/or the Board of Commissioners, such as Nomination and Remuneration Committee, containing:a) name and position in the Committee; b) age; c) citizenship; d) education background; e) history of position, including:

(1) legal basis for the appointment as member of the committee;

(2) dual position, as member of Board of Commissioners, member of Board of Directors, and/or

member of committee, and other position (if any); and


f) period and terms of office of the member of Committee;

g) description of duty and responsibility; h) statement that the Committee has already

have the Charter; i) statement of independence of the

Committee; j) policies and frequency of meeting of

the committee, and attendance of each member of the committee in the said meetings;

k) education and/or training during the year under review (if any); and

l) brief description on the activities of the committee;

6) Corporate Secretary, including: a) name; b) domicile; c) history of position, including:

(1) legal basis for the appointment as Corporate Secretary; and


d) education background; e) education and/or training during the year

under review; and f) brief description on the implementation

of duties of the Corporate Secretary in the year under review;

7) Internal Audit Unit, among others including: a) name of Head of Internal Audit Unit; b) history of position, including:

(1) legal basis for the appointment as Head of Internal Audit Unit; and


c) qualification or certification as internal auditor (if any);

d) education and/or training during the year under review;

e) structure and position of Internal Audit Unit;

f) description of duties and responsibilities; g) statement that the Internal Audit Unit has

already have Internal Audit Unit charter; and

h) brief description on the implementation of duty of Internal Audit Unit during the year under review;

8) description on internal control system adopted by the Issuer or Public Company, at least covering: a) financial and operational control, and

compliance to the other prevailing rules; and

b) review on the effectiveness of internal control systems;

9) risk management system implemented by the company, at least includes: a) general description about the company’s

risk management system the Issuer or Public Company;

b) types of risk and the management; andc) review the effectiveness of the risk

management system applied by the Issuer or Public Company;

10) important cases faced by the Issuer or Public Company, subsidiaries, current members of the Board of Commissioners and the Board of Directors, among others include:a) substance of the case/claim; b) status of settlement of case/claim; and c) potential impacts on the condition of the

Issuer or Public Company; 11) information about administrative sanctions

imposed to Issuer or Public Company, members of the Board of Commissioners and the Board of Directors, by the Capital Market Authority and other authorities during the last fiscal year (if any);

12) information about codes of conduct of the Issuer or Public Company, includes: a) key points of the code of conduct; b) socialization of the code of conduct and

enforcement; andc) statement that the code of conduct is

applicable for the Board of Commissioners, the Board of Directors, and employees of the Issuer of Public Company;

13) information about corporate culture (if any) of the Issuer or Public Company;

14) description of employee or management stock ownership program of the Issuer or Public Company, among others contains:a) number of share and/or option; b) period; c) requirement for eligible employee and/or

management; and d) exercised price;

15) description of whistleblowing system at the Issuer or Public Company (if any), among others include: a) mechanism for violation reporting; b) protection for the whistleblower; c) handling of violation reports; d) unit responsible for handling of violation

report; ande) results from violation report handling, at

least includes: (1) number of complaints received and

processed during the fiscal year; and (2) follow up of complaints;

PAGE

59, 61

46

59, 61

44

59, 61

59, 61, 58, 60

44, 47

44, 4744, 47

45, 47

45,47

NA

45,47

48,6148,61

48

61

6149

49

57,61

48

61

NA

31

48

4848

PAGE

48

51

51

52,53

52,5352,53

505050

50

5050

50

6,50

505050

50

515151

51

51

51



16) implementation of the Guidelines of Corporate Governance for Public Companies for Issuer issuing Equitybased Securities or Public Company, including:a) statement regarding recommendation that

have been implemented; and/orb) description of recommendation that have

not been implemented, along with the reason and alternatives of implementation (if any);

h. Social and Environmental Responsibility of the Issuer or Public Company1) Information on social and environmental

responsibility of the Issuer or Public Company that covers policies, types of programs, and cost, among others related to:a) environment, among others:

(1) he use of environmentally friendly and recyclable materials and energy;

(2) the waste treatment systems of the Issuer or Public Company;

(3) mechanism for filling complaint on environmental issues; and

(4) environmental certifications; b) employment practices, occupational health

and safety, among others: (1) gender equality and equal work

opportunity; (2) work and safety facilities; (3) employee turnover; (4) work incident rate; (5) education and/or training; (6) remuneration; and (7) mechanism for filling complaint on

employment issues; c) social and community development, among

others:(1) the use of local work force; (2) empowerment of local communities

among others through the use of raw material produced by the community or by providing education;

(3) improvement of public social facilities and infrastructure;

(4) other form of donation; and(5) dissemination of the policies and

procedures of anti-corruption at the Issuers or Public Company, and training on anti-corruption (if any);

d) products and/or services responsibilities, among others: (1) consumers’ health and safety; (2) products and/or services information;

and(3) facilities, number, and resolution of

consumer complaint.

2) In the event that the Issuer or the Public Company imparts information on social and environmental responsibility as referred to in point 1) in separate report such corporate social and environmental responsibility report, or sustainability report, then the Issuers or the Public Company is excluded from disclosing information on social and environmental responsibility in Annual Report; and

3) The said report in point 2) should be submitted to the Financial Service Authority along with the Annual Report;

i. Audited Annual Financial Statement Financial Statements included in Annual Report

should be prepared in accordance with the Financial Accounting Standards in Indonesia and audited by an Accountant. The said financial statement should be included with statement of responsibility for financial report as stipulated in the legislations in the Capital Markets sector governing the responsibility of the Board of Directors on the financial report or the legislations in the Capital Markets sector governing the periodic reports of securities company in the event the Issuer is a Securities Company; and

j. Letter of Statement of the Board of Directors and the Board of Commissioners regarding the Responsibility for Annual Reporting

Letter of statement of the Board of Directors and the Board of Commissioners regarding the responsibility for Annual Reporting should be prepared according to the format of letter of statement of member of Board of Directors and the Board of Commissioners regarding the responsibility for Annual Reporting as attached in the Attachment, which is an integral part of this Circulation Letter of the Financial Services Authority.

PAGE

55

55

NA

35

NA

NA

NA

NA33

3332

3145

35

34

35

NANA

NA

PAGE

NA

NA

71

69


P T S A R A T O G A I N V E S T A M A S E D A Y A T B K

2018 ANNUAL REPORT

Menara Karya 15th Fl. Jl. H.R Rasuna Said Block X-5 Kav 1-2, Jakarta Selatan 12950Telp : +62 21 5794 4355Fax : +62 21 5794 4365

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